Parent Company Financial Information

TCF Financial's condensed statements of financial condition, income and cash flows were as follows:

Condensed Statements of Financial Condition



	At December 31,
(In thousands)	2018		2017
Assets:
Cash and due from banks	$	91,132	$	80,471
Investment in TCF Bank	2,426,329		2,563,552
Accounts receivable from TCF Bank	23,780		22,015
Other assets	4,253		5,739
Total assets	$	2,545,494	$	2,671,777
Liabilities and Equity:
Accrued expenses and other liabilities	$	7,693	$	9,020
Total liabilities	7,693		9,020
Equity	2,537,801		2,662,757
Total liabilities and equity	$	2,545,494	$	2,671,777

Condensed Statements of Income



	Year Ended December 31,
(In thousands)	2018			2017		2016
Interest income	$	200		$	183	$	155
Non-interest income:
Dividends from TCF Bank	431,000			65,000		63,000
Management fees	20,532			15,660		17,657
Other	426			13		5
Total non-interest income	451,958			80,673		80,662
Non-interest expense:
Compensation and employee benefits	21,825			17,801		17,578
Occupancy and equipment	301			275		370
Other	4,139			1,785		3,545
Total non-interest expense	26,265			19,861		21,493
Income before income tax benefit and equity in undistributed earnings (loss) of TCF Bank	425,893			60,995		59,324
Income tax benefit	952			1,575		1,010
Income before equity in undistributed earnings (loss) of TCF Bank	426,845			62,570		60,334
Equity in undistributed earnings (loss) of TCF Bank	(122,487		)	206,067		151,790
Net income	304,358			268,637		212,124
Preferred stock dividends	11,588			19,904		19,388
Impact of preferred stock redemption	3,481			5,779		—
Net income available to common stockholders	$	289,289		$	242,954	$	192,736

Condensed Statements of Cash Flows



	Year Ended December 31,
(In thousands)	2018			2017			2016
Cash flows from operating activities:
Net income	$	304,358		$	268,637		$	212,124
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed (earnings) loss of TCF Bank	122,487			(206,067		)	(151,790		)
Depreciation and amortization	4,986			9,110			4,734
Provision (benefit) for deferred income taxes	(583		)	4,690			(592		)
Gains on sales of assets, net	(402		)	—			—
Net change in other assets and accrued expenses and other liabilities	379			(2,494		)	1,032
Other, net	3,001			(3,408		)	(443		)
Net cash provided by (used in) operating activities	434,226			70,468			65,065
Cash flows from investing activities:
Purchases of premises and equipment	(3		)	(23		)	(69		)
Proceeds from sales of assets	727			—			22
Net cash provided by (used in) investing activities	724			(23		)	(47		)
Cash flows from financing activities:
Redemption of Series B preferred stock	(100,000		)	—			—
Net proceeds from public offering of Series C preferred stock	—			169,302			—
Redemption of Series A preferred stock	—			(172,500		)	—
Repurchases of common stock	(212,929		)	(9,163		)	—
Common shares sold to TCF employee benefit plans	715			23,254			5,838
Dividends paid on preferred stock	(11,588		)	(19,904		)	(19,388		)
Dividends paid on common stock	(99,490		)	(50,617		)	(50,182		)
Stock compensation tax (expense) benefit	—			—			(377		)
Exercise of stock options	(997		)	(57		)	(701		)
Net cash provided by (used in) financing activities	(424,289		)	(59,685		)	(64,810		)
Net change in cash and due from banks	10,661			10,760			208
Cash and due from banks at beginning of period	80,471			69,711			69,503
Cash and due from banks at end of period	$	91,132		$	80,471		$	69,711

TCF Financial's operations are conducted through its banking subsidiary, TCF Bank. As a result, TCF Financial's cash flows and ability to make dividend payments to its preferred and 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, 2018, TCF Bank could pay $235.4 million in additional dividends to TCF Financial without prior regulatory approval. See Note 16. Regulatory Capital Requirements of Notes to Consolidated Financial Statements for further information.