TCF Bank 2010 Annual Report Download - page 109

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• 93 •
2010 Form 10-K
Condensed Statements of Cash Flows
Year Ended December 31,
(In thousands) 2010 2009 2008
Cash flows from operating activities:
Net income $146,564 $ 87,097 $ 128,958
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of bank subsidiaries (155,249) (66,806) (14,172)
Other, net 16,743 29,795 (6,394)
Total adjustments (138,506) (37,011) (20,566)
Net cash provided by operating activities 8,058 50,086 108,392
Cash flows from investing activities:
Purchases of premises and equipment, net (142) (40) (40)
Net cash used by investing activities (142) (40) (40)
Cash flows from financing activities:
Dividends paid on common stock (27,617) (50,828) (126,447)
Dividends paid on preferred stock – (7,926) –
Recission of capital contribution to TCF National Bank – 361,172 –
Issuance of common stock 164,748 – –
(Redemption)/Issuance of preferred stock – (361,172) 361,004
Interest paid on trust preferred securities (12,364) (12,364) –
Sale of trust preferred securities – – 111,378
Capital infusions to TCF National Bank (255,000) (50) (434,092)
Shares sold to Employees Stock Purchase Plans 18,089 19,147 10,178
Net decrease in short-term borrowings – – (9,500)
Stock compensation tax (expense) benefits 298 (1,058) 9,638
Proceeds from senior unsecured term note 89,640 – –
Other, net – 1,538 163
Net cash used by financing activities (22,206) (51,541) (77,678)
Net (decrease) increase in cash (14,290) (1,495) 30,674
Cash and cash equivalents at beginning of year 32,062 33,557 2,883
Cash and cash equivalents at end of year $17,772 $ 32,062 $ 33,557
TCF Financial Corporation’s (parent company only)
operations are conducted through its banking subsidiaries
and other subsidiaries. As a result, TCF’s cash flow and ability
to make dividend payments to its common stockholders
depend on the earnings of its subsidiaries. The ability of
TCF’s banking subsidiaries to pay dividends or make other
payments to TCF is limited by their obligations to maintain
sufficient capital and by other regulatory restrictions on
dividends. At December 31, 2010, TCF’s banking subsidiaries
could pay a total of approximately $239.9 million in
dividends to TCF without prior regulatory approval.
Additionally, retained earnings at TCF National Bank,
a wholly owned subsidiary of TCF Financial Corporation,
at December 31, 2010 includes approximately $134.4
million for which no provision for federal income taxes
has been made. This amount represents earnings legally
appropriated to thrift bad debt reserves and deducted
for federal income tax purposes in prior years and is
generally not available for payment of cash dividends
or other distributions to shareholders. Future payments
or distributions of these appropriated earnings could
invoke a tax liability for TCF based on the amount of the
distributions and the tax rates in effect at that time.