TCF Bank 2003 Annual Report Download - page 61

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2003 Annual Report 59
Note 7. Allowance for Loan and Lease Losses
Following is a summary of the allowance for loan and lease losses and selected statistics:
Year Ended December 31,
(Dollars in thousands) 2003 2002 2001
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 77,008 $ 75,028 $ 66,669
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,532 22,006 20,878
Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,369) (24,361) (16,951)
Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,448 4,335 4,432
Net charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,921) (20,026) (12,519)
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 76,619 $ 77,008 $ 75,028
Ratio of net loan and lease charge-offs to average loans and leases outstanding . . . . . . . . . . . . . . . . . . . . . . . . . .16% .25% .15%
Allowance for loan and lease losses as a percentage of total loan and lease balances at year end . . . . . . . . . . . .92 .95 .91
Information relating to impaired loans and non-accrual loans and leases is as follows:
At or For the Year Ended December 31,
(In thousands) 2003 2002 2001
Impaired loans:
Balance, at year-end . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,133 $ 12,090 $ 18,839
Related allowance for loan losses, at year-end(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,456 5,512 4,986
Average recorded investment in impaired loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,770 14,686 9,939
Interest income recognized on impaired loans (cash basis) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 92 29
Non-accrual loans and leases:
Balance, at year-end . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,328 42,068 51,224
Contractual interest (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,271 4,301 5,450
Interest income recognized on non-accrual loans and leases (cash basis) . . . . . . . . . . . . . . . . . . . . . . . . . . . 783 1,225 1,711
(1) There were no impaired loans at December 31, 2003, 2002 and 2001 which did not have a related allowance for loan losses.
(2) Represents interest which would have been recorded had the loans and leases performed in accordance with their original terms.
At December 31, 2003, 2002 and 2001, TCF had no loans outstanding with terms that had been modified in troubled debt restructurings.
There were no material commitments to lend additional funds to customers whose loans or leases were classified as non-accrual at
December 31, 2003.
Note 8. Premises and Equipment
Premises and equipment are summarized as follows:
At December 31,
(In thousands) 2003 2002
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 76,902 $ 62,226
Office buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169,098 155,954
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,927 39,208
Furniture and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242,958 213,759
529,885 471,147
Less accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247,692 227,695
$282,193 $243,452
TCF leases certain premises and equipment under operating leases. Net lease expense was $23.5 million, $20.8 million and $20.7 million in
2003, 2002 and 2001, respectively.