TCF Bank 2015 Annual Report Download - page 120

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105
Condensed Statements of Cash Flows
Year Ended December 31,
(In thousands) 2015 2014 2013
Cash flows from operating activities:
Net income $ 197,123 $ 174,187 $151,668
Adjustments to reconcile net income to net cash provided by (used in) operating
activities:
Equity in undistributed earnings of bank subsidiary (171,959)(156,098)(152,977)
Gains on sales of assets, net (50)(1,177)(350)
Other, net 1,308 16,430 9,962
Net cash provided by (used in) operating activities 26,422 33,342 8,303
Cash flows from investing activities:
Proceeds from sales of securities available for sale — 2,813 —
Purchases of premises and equipment (65)(260)(148)
Proceeds from sales of premises and equipment 92 91 —
Other, net — — 869
Net cash provided by (used in) investing activities 27 2,644 721
Cash flows from financing activities:
Dividends paid on preferred stock (19,388) (19,388) (19,065)
Dividends paid on common stock (37,302) (32,731) (32,227)
Common shares sold to TCF employee benefit plans 24,835 23,083 20,179
Stock compensation tax (expense) benefit 558 1,316 (473)
Exercise of stock options 2,570 740 —
Net cash provided by (used in) financing activities (28,727) (26,980) (31,586)
Net change in cash and due from banks (2,278) 9,006 (22,562)
Cash and due from banks at beginning of period 71,781 62,775 85,337
Cash and due from banks at end of period $ 69,503 $71,781 $62,775
TCF Financial's (parent company only) operations are conducted through its banking subsidiary, TCF Bank. As a result,
TCF's cash flow and ability to make dividend payments to its common stockholders depend on the earnings of TCF
Bank. The ability of TCF Bank to pay dividends or make other payments to TCF Financial is limited by its obligation
to maintain sufficient capital and by other regulatory restrictions on dividends. At December 31, 2015, TCF Bank could
pay a total of approximately $481.0 million in dividends to TCF without prior regulatory approval.
Note 24. Litigation Contingencies
From time to time, TCF is a party to legal proceedings arising out of its lending, leasing and deposit operations, including
foreclosure proceedings and other collection actions as part of its lending and leasing collections activities. TCF may
also be subject to regulatory examinations and enforcement actions brought by federal regulators, including the
Securities and Exchange Commission, the Federal Reserve, the OCC and the Consumer Financial Protection Bureau
("CFPB"), and TCF's regulatory authorities may impose sanctions on TCF for failures related to regulatory compliance.
From time to time, borrowers and other customers, and employees and former employees, have also brought actions
against TCF, in some cases claiming substantial damages. TCF and other financial services companies are subject
to the risk of class action litigation. Litigation is often unpredictable and the actual results of litigation cannot be
determined, and therefore the ultimate resolution of a matter and the possible range of loss associated with certain
potential outcomes cannot be established. Except as discussed below, based on our current understanding of TCF’s
pending legal proceedings, management does not believe that judgments or settlements arising from pending or
threatened legal matters, individually or in the aggregate, would have a material adverse effect on the consolidated
financial position, operating results or cash flows of TCF.