TCF Bank 2011 Annual Report Download - page 98

Download and view the complete annual report

Please find page 98 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

The $71 million of subordinated notes due 2014 reprice
quarterly at the three-month LIBOR rate plus 1.63%. These
subordinated notes may be redeemed by TCF Bank at
par once a quarter at TCF’s discretion. The $50 million of
subordinated notes due 2015 reprice quarterly at the three-
month LIBOR rate plus 1.56%. These subordinated notes
may be redeemed by TCF Bank at par once a quarter at TCF’s
discretion. The $74.6 million of subordinated notes due
2016 have a fixed-rate coupon of 5.5% until February 1, 2016.
All of these subordinated notes qualify as Tier 2 or
supplementary capital for regulatory purposes, subject
to certain limitations.
TCF’s trust preferred securities are callable, with Federal
Reserve approval, at par beginning August 15, 2013 or
within 90 days of the occurrence of a “capital treatment
event,” as defined by TCF’s trust preferred securities
Supplemental Indenture dated August 19, 2008.
TCF will have to seek approval from the Federal Reserve
to redeem the trust preferred securities. While TCF believes
it will be granted such approval based on the approval it
has previously received, TCF cannot be assured that the
Federal Reserve will be willing to approve the redemption.
Note 13. Income Taxes
(In thousands) Current Deferred Total
Year ended December 31, 2011:
Federal $(2,737) $56,144 $53,407
State 16,740 (5,706) 11,034
Total $14,003 $50,438 $64,441
Year ended December 31, 2010:
Federal $49,462 $27,100 $76,562
State 11,695 1,914 13,609
Total $61,157 $29,014 $90,171
Year ended December 31, 2009:
Federal $ 4,311 $37,636 $41,947
State 6,285 1,579 7,864
Total $10,596 $39,215 $49,811
The effective income tax rate differs from the federal income tax rate of 35% as a result of the following.
Year Ended December 31,
2011 2010 2009
Federal income tax rate 35.00% 35.00% 35.00%
Increase (decrease) in income tax expense resulting from:
State income tax, net of federal income tax benefit 4.01 3.62 3.56
Investments in affordable housing (.69) (.76) (1.31)
Deductible stock dividends (.34) (.25) (.78)
Changes in uncertain tax positions .05 (.14) (3.16)
Compensation deduction limitations .22 .17 .69
Non-controlling interest tax effect (1.01) (.48) .10
Tax exempt income (.82) (.41) (.22)
Other, net (.38) .14 .79
Effective income tax rate 36.04% 36.89% 34.67%
80 TCF Financial Corporation and Subsidiaries