TCF Bank 2004 Annual Report Download - page 68

66 TCF Financial Corporation and Subsidiaries
The following table sets forth TCF’s and TCF National Bank’s regulatory tier 1 leverage, tier 1 risk-based and total risk-based capital levels,
and applicable percentages of adjusted assets, together with the excess over minimum capital requirements:
Minimum
Actual Capital Requirement Excess
(Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio
As of December 31, 2004:
Tier 1 leverage capital
TCF Financial Corporation . . . . . . . . . . . . . . $803,870 6.63% $363,940 3.00% $439,930 3.63%
TCF National Bank . . . . . . . . . . . . . . . . . . . . 775,100 6.41 362,911 3.00 412,189 3.41
Tier 1 risk-based capital
TCF Financial Corporation . . . . . . . . . . . . . . 803,870 9.12 352,592 4.00 451,278 5.12
TCF National Bank . . . . . . . . . . . . . . . . . . . . 775,100 8.81 351,865 4.00 423,235 4.81
Total risk-based capital
TCF Financial Corporation . . . . . . . . . . . . . . 958,900 10.88 705,185 8.00 253,715 2.88
TCF National Bank . . . . . . . . . . . . . . . . . . . . 930,130 10.57 703,730 8.00 226,400 2.57
As of December 31, 2003:
Tier 1 leverage capital
TCF Financial Corporation . . . . . . . . . . . . . . $ 765,271 6.87% $ 334,402 3.00% $ 430,869 3.87%
TCF National Bank . . . . . . . . . . . . . . . . . . . 754,599 6.83 331,649 3.00 422,950 3.83
Tier 1 risk-based capital
TCF Financial Corporation . . . . . . . . . . . . . . 765,271 9.75 313,825 4.00 451,446 5.75
TCF National Bank . . . . . . . . . . . . . . . . . . . 754,599 9.64 313,143 4.00 441,456 5.64
Total risk-based capital
TCF Financial Corporation . . . . . . . . . . . . . . 841,982 10.73 627,650 8.00 214,332 2.73
TCF National Bank . . . . . . . . . . . . . . . . . . . 831,310 10.62 626,286 8.00 205,024 2.62
At December 31, 2004, TCF and TCF National Bank exceeded their regulatory capital requirements and are considered “well-capitalized”
under guidelines established by the FRB and the OCC pursuant to the Federal Deposit Insurance Corporation Improvement Act of 1991.
Note 17. Incentive Stock Program
The TCF Financial 1995 Incentive Stock Program (the “Program”)
was adopted to enable TCF to attract and retain key personnel.
Under the Program, no more than 5% of the shares of TCF common
stock outstanding on the date of initial shareholder approval may
be awarded. At December 31, 2004, there were 5,173,282 shares
reserved for issuance under the Program, including 325,864 shares
related to outstanding stock options.
At December 31, 2004, there were 2,142,246 shares of
performance-based restricted stock that will vest only if certain
earnings per share goals are achieved by 2008. On January 6, 2005,
1,085,570 shares of performance-based restricted stock vested
due to the achievement of an earnings per share goal in 2004.
Failure to achieve the goals will result in all or a portion of the shares
being forfeited. Other restricted stock grants generally vest over
periods from three to seven years. The weighted-average grant date
fair value of restricted stock was $28.14, $22.50 and $24.46 in 2004,
2003 and 2002, respectively. Compensation expense for restricted
stock totaled $6.9 million, $9.7 million and $11.6 million in 2004,
2003 and 2002, respectively.
TCF has also issued stock options under the Program that gener-
ally become exercisable over a period of one to 10 years from the
date of the grant and expire after 10 years. All outstanding options
have a fixed exercise price equal to the market price of TCF common
stock on the date of grant. As of December 31, 2004, all outstanding
stock options are vested.