TCF Bank 2009 Annual Report Download - page 79

2009 Form 10-K : 63
is reported separately in a manner similar to treasury stock
(that is, changes in fair value are not recognized) with a
corresponding deferred compensation obligation reected
in additional paid-in capital.
 On April 22, 2009, TCF redeemed all of
the 361,172 outstanding shares of its Fixed-Rate Cumulative
Perpetual Preferred Stock, Series A, $.01 Par Value. Upon
redemption, the difference of $12 million between the
preferred stock redemption amount and the recorded
amount was charged to retained earnings as a non-cash
deemed preferred stock dividend. This non-cash deemed
preferred stock dividend had no impact on total equity, but
reduced earnings per diluted common share by 10 cents.
 At December 31, 2009, TCF had 3,199,988
warrants outstanding with a strike price of $16.93 per
share. The warrants are publicly traded on the New York
Stock Exchange under the symbol “TCB WS”.
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
prots for the current year combined with its retained net
prots for the preceding two calendar years, which was
$158.3 million at December 31, 2009, without prior approval
of the OCC. TCF Bank’s ability to make capital distributions
in the future may require regulatory approval and may be
restricted by its regulatory authorities. TCF Bank’s ability to
make any such distributions will also depend on its earnings
and ability to meet minimum regulatory capital requirements
in effect during future periods. These capital adequacy
standards may be higher in the future than existing minimum
regulatory capital requirements.
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 stated minimum and well-capitalized
capital ratio requirements.
Minimum Well-Capitalized
Actual Capital Requirement Capital Requirement
(Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio


           
         

          
        

          
        
As of December 31, 2008:
Tier 1 leverage capital
TCF $ 1,461,973 8.97% $ 488,950 3.00% N.A. N.A.
TCF National Bank 1,364,053 8.41 486,552 3.00 $ 810,920 5.00%
Tier 1 risk-based capital
TCF 1,461,973 11.79 496,059 4.00 744,088 6.00
TCF National Bank 1,364,053 11.06 493,388 4.00 740,082 6.00
Total risk-based capital
TCF 1,817,225 14.65 992,117 8.00 1,240,147 10.00
TCF National Bank 1,718,476 13.93 986,776 8.00 1,233,470 10.00
N.A. Not Applicable.
The minimum and well capitalized requirements are determined by the FRB for TCF and by the OCC for TCF National Bank
pursuant to the FDIC Improvement Act of 1991. At December 31, 2009, TCF and TCF National Bank exceeded their regulatory
capital requirements and are considered “well-capitalized”.