Midwest bank plans to give government money back

WAYZATA, Minn. -- The bank holding company, which has operations in seven states, has asked permission from federal regulators to return the money it received in November under the Troubled Asset Relief Program.

In a news release Monday, TCF said it has enough funds to repay the money and won't have to issue more shares.

"TCF has sufficient capital and access to capital to operate without the TARP money," said Bill Cooper, chairman and chief executive office, in a prepared statement.

Cooper said "the rules have definitely changed" since TCF took the money under a program for healthy banks.

"As a result, public perception views those banks that took the TARP money as having done so out of weakness and a need to survive without distinction among TARP programs or individual bank capital adequacy," Cooper said.

"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."

Under the government's rules, the money can't be repaid until after a 30-day notice period. TCF spokesman Jason Korstange said the bank expects to repay the money with an additional $2 million to $2.5 million in dividend payments, depending on when the government accepts the money. It has already made one dividend payment to the government of about $4.5 million, he said.

TCF has $16.7 billion in total assets and banking offices in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana and Arizona.