TCF Bank 2007 Annual Report Download - page 83

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2007 Form 10-K | 63
stocks. There were no company contributions to these plans,
other than payment of administrative expenses. The amounts
deferred are invested in TCF stock or other publicly traded
stocks, bonds or mutual funds. Directors were and still are
allowed to defer up to 100% of their fees and restricted stock
awards. TCF has a supplemental nonqualified Employee
Stock Purchase Plan in which certain employees can
contribute from 0% to 50% of their salary and bonus. At
December 31, 2007, the fair value of the assets in the plans
totaled $93.3 million and included $70.6 million invested in
TCF common stock. The cost of TCF common stock held by
TCF’s deferred compensation plans is reported separately in a
manner similar to treasury stock (that is, changes in fair
value are not recognized) with a corresponding deferred com-
pensation obligation reflected in additional paid-in capital.
Note 14. Regulatory Capital Requirements
TCF is subject to various regulatory capital requirements
administered by the federal banking agencies. Failure to
meet minimum capital requirements can initiate certain
mandatory, and possible additional discretionary, actions
by the federal banking agencies that could have a material
adverse effect on TCF. In general, TCF Bank may not declare
or pay a dividend to TCF in excess of 100% of its net retained
profits for the current year combined with its retained net
profits for the preceding two calendar years without prior
approval of the OCC.
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 minimum and well-capitalized capital
requirements.
Minimum Well-Capitalized
Actual Capital Requirement Capital Requirement
(Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio
As of December 31, 2007:
Tier 1 leverage capital
TCF $ 964,467 6.16% $469,914 3.00% N.A. N.A.
TCF National Bank 900,864 5.76 468,806 3.00 $ 781,343 5.00%
Tier 1 risk-based capital
TCF 964,467 8.28 465,931 4.00 698,897 6.00
TCF National Bank 900,864 7.75 464,934 4.00 697,402 6.00
Total risk-based capital
TCF 1,245,808 10.70 931,863 8.00 1,164,829 10.00
TCF National Bank 1,182,196 10.17 929,869 8.00 1,162,336 10.00
As of December 31, 2006:
Tier 1 leverage capital
TCF $ 914,128 6.33% $432,993 3.00% N.A. N.A.
TCF National Bank 821,273 5.70 432,374 3.00 $ 720,623 5.00%
Tier 1 risk-based capital
TCF 914,128 8.65 422,678 4.00 634,016 6.00
TCF National Bank 821,273 7.79 421,941 4.00 632,911 6.00
Total risk-based capital
TCF 1,173,073 11.10 845,355 8.00 1,056,694 10.00
TCF National Bank 1,080,218 10.24 843,881 8.00 1,054,851 10.00
N.A. Not Applicable.
At December 31, 2007, TCF, TCF National Bank and TCF National Bank Arizona 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.