March 2, 2009 / 9:01 PM / 11 years ago

UPDATE 1-TCF Financial says files notice to pay back TARP money

* Files notice to pay back $361.2 mln TARP preferred stock

* Says will not issue any common shares or securities

* Says has sufficient capital & access to capital

March 2 (Reuters) - TCF Financial Corp TCB.N, the parent of TCF National Bank , said it filed a notice with the U.S. Treasury to pay back $361.2 million of TARP money it got in November last year, citing public perception that views banks who took TARP money as weak.

“We believe participation in TARP has created a competitive disadvantage for TCF and it is in the best interest of our shareholders to redeem these shares,” Chief Executive William Cooper said.

TCF said it has sufficient funds to complete the pay back the money and will not have to issue any additional common shares or other securities.

After a 30-day notice period, the redemption price will become due and payable to the Treasury on the outstanding preferred shares, the related preferred stock dividends will cease to accrue and the common stock warrants issued under the capital purchase program will be liquidated, TCF said.

“TCF has sufficient capital and access to capital to operate without the TARP money,” CEO Cooper said.

From Nov. 14, 2008, when it received the TARP funds, to Dec. 31, TCF originated over $490 million of loans and leases, and 762 loan modifications and extensions on over $117 million of consumer home equity loans, the company said in a statement.

Shares of the company were trading down 34 cents at $11.92 in afternoon trade on the New York Stock Exchange. (Reporting by Supantha Mukherjee in Bangalore; Editing by Jarshad Kakkrakandy)

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