TCF Bank 2012 Annual Report Download - page 103

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Note 15. Regulatory Capital Requirements
TCF and TCF Bank are 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
Financial 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 $28.1 million
at December 31, 2012, 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 presents regulatory capital information for TCF and TCF Bank.
Actual
Minimum
Capital Requirement(1)
Well-Capitalized
Capital Requirement(1)
(Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio
As of December 31, 2012
Tier 1 leverage capital:(2)
TCF $1,633,336 9.21% $ 709,606 4.00% N.A. N.A.
TCF Bank 1,521,026 8.58 709,382 4.00 $ 886,728 5.00%
Tier 1 risk-based capital:
TCF 1,633,336 11.09 589,328 4.00 883,992 6.00
TCF Bank 1,521,026 10.33 589,060 4.00 883,590 6.00
Total risk-based capital:
TCF 2,007,835 13.63 1,178,656 8.00 1,473,320 10.00
TCF Bank 1,895,367 12.87 1,178,121 8.00 1,472,651 10.00
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
N.A. Not Applicable.
(1) The minimum and well-capitalized requirements are determined by the Federal Reserve for TCF and by the Office of the Comptroller of the Currency for TCF Bank pursuant to
the FDIC Improvement Act of 1991.
(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.
{ 2012 Form 10K } { 87 }