TCF Bank 2014 Annual Report Download - page 93

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Note 15. Stock Compensation
The TCF Financial Incentive Stock Program (the ‘‘Program’’) was adopted to enable TCF to attract and retain key personnel. At
December 31, 2014, there were 2,754,016 shares reserved for issuance under the Program.
At December 31, 2014, there were 1,080,916 shares of performance-based restricted stock outstanding that will vest only if
certain return on asset goals, loan volumes and credit quality metrics and service conditions are achieved. Failure to achieve the
performance and service conditions will result in all or a portion of the shares being forfeited. Awards of service-based restricted
stock vest over periods from one year to five years.
Information about restricted stock is summarized as follows.
At or For the Year Ended
December 31,
(Dollars in thousands) 2014 2013 2012
Compensation expense for restricted stock $ 8,690 $10,467 $10,934
Unrecognized stock compensation expense for restricted stock awards and options 22,532 14,482 19,530
Tax benefit recognized for stock compensation expense 3,424 4,034 4,259
Weighted average amortization (years) 2.6 1.6 2.1
TCF has also issued stock options under the Program that generally become exercisable over a period of one to ten years from
the date of the grant and expire after ten years. All outstanding options have a fixed exercise price equal to the market price of
TCF common stock on the date of grant.
Valuation and related assumption information for TCF’s stock option plans related to options issued in 2008 is presented below
and no stock options were subsequently issued through December 31, 2014.
Expected volatility 28.5%
Weighted-average volatility 28.5%
Expected dividend yield 3.5%
Expected term (years) 6.25 - 6.75
Risk-free interest rate 2.58% - 2.91%
The following table reflects TCF’s restricted stock and stock option transactions under the Program since December 31, 2011.
Restricted Stock Stock Options
Weighted-
Weighted- Average Weighted-
Average Remaining Average
Grant Date Contractual Exercise
Shares Price Range Fair Value Shares Price Range Life in Years Price
Outstanding at December 31, 2011 2,284,114 $ 6.16 - $28.64 $12.95 2,198,744 $12.85 - $15.75 5.72 $14.43
Granted 1,769,700 7.73 - 11.56 9.27 – – - – – –
Forfeited/canceled (322,908) 7.73 - 28.02 10.13 (121,640) 15.75 - 15.75 – 15.75
Vested (518,671) 7.57 - 28.64 13.42 – – - – – –
Outstanding at December 31, 2012 3,212,235 6.16 - 25.18 11.13 2,077,104 12.85 - 15.75 4.22 14.35
Granted 493,650 12.47 - 15.17 13.55 – – - – – –
Forfeited/canceled (120,313) 9.65 - 17.37 12.75 (451,104) 15.75 - 15.75 – 15.75
Vested (230,277) 9.48 - 25.18 16.04 – – - – – –
Outstanding at December 31, 2013 3,355,295 6.16 - 15.17 11.09 1,626,000 12.85 - 15.75 4.36 13.97
Granted 1,120,750 13.84 - 16.02 15.61 – – - – – –
Exercised – – - – – (47,000) 15.75 - 15.75 – 15.75
Forfeited/canceled (108,490) 6.80 - 15.79 13.06 – – - – – –
Vested (1,509,061) 8.35 - 14.90 11.21 – – - – – –
Outstanding at December 31, 2014 2,858,494 6.16 - 16.02 12.73 1,579,000 12.85 - 15.75 2.98 13.91
Exercisable at December 31, 2014 N.A. N.A. 1,579,000 12.85 - 15.75 13.91
N.A. Not Applicable.
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