TCF Bank 2011 Annual Report Download - page 101

Download and view the complete annual report

Please find page 101 of the 2011 TCF Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

Note 15. 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, which was
$329.4 million at December 31, 2011, without prior approval
of the Office of the Comptroller of the Currency (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 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.
Actual
Minimum
Capital Requirement(1)
Well-Capitalized
Capital Requirement(1)
(Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio
As of December 31, 2011:
Tier 1 leverage capital (2)
TCF $1,706,926 9.15% $ 745,887 4.00% N.A. N.A.
TCF Bank 1,553,381 8.33 745,940 4.00 $ 932,426 5.00%
Tier 1 risk-based capital
TCF 1,706,926 12.67 539,013 4.00 808,520 6.00
TCF Bank 1,553,381 11.53 538,829 4.00 808,243 6.00
Total risk-based capital
TCF 1,994,875 14.80 1,078,026 8.00 1,347,533 10.00
TCF Bank 1,841,273 13.67 1,077,658 8.00 1,347,072 10.00
As of December 31, 2010:
Tier 1 leverage capital
TCF $1,459,703 7.91% $ 738,105 4.00% N.A. N.A.
TCF Bank 1,503,379 8.15 737,702 4.00 $ 922,128 5.00%
Tier 1 risk-based capital
TCF 1,459,703 10.47 557,465 4.00 836,198 6.00
TCF Bank 1,503,379 10.80 557,057 4.00 835,585 6.00
Total risk-based capital
TCF 1,792,683 12.86 1,114,930 8.00 1,393,663 10.00
TCF Bank 1,836,233 13.19 1,114,114 8.00 1,392,642 10.00
N.A. Not Applicable.
(1) The minimum and well-capitalized requirements are determined by the Federal Reserve for TCF and by the OCC for TCF Bank pursuant to the FDIC Improvement Act of 1991.
At December 31, 2011, TCF and TCF Bank exceeded their regulatory capital requirements and are considered “well-capitalized.”
(2) The minimum Tier 1 leverage ratio for bank holding companies and banks is 3.0 or 4.0 percent depending on factors specified in regulations issued by federal banking
agencies.
832011 Form 10-K