TCF Bank 2004 Annual Report Download - page 44

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42 TCF Financial Corporation and Subsidiaries
Borrowings Borrowings totaled $3.1 billion at December 31, 2004,
up $689.8 million from December 31, 2003. The increase was prima-
rily attributable to the loans and leases increasing $1 billion during
2004 while deposit balances grew only $350.5 million which increases
TCF’s reliance on borrowings. During the second quarter of 2004,
TCF National Bank, a subsidiary of TCF Financial Corporation issued
$75 million of subordinated notes due in 2014. These notes qualify
as Tier 2 or supplemental capital for regulatory purposes, subject
to certain limitations. TCF Bank paid the proceeds from the offering
to TCF to be used for general corporate purposes, which may include
repurchases in the open market of TCF common stock. See Notes 12
and 13 of Notes to Consolidated Financial Statements for detailed
information on TCF’s borrowings. Included in long-term borrowings
at December 31, 2004 are $767.5 million of fixed-rate FHLB advances
and repurchase agreements with other financial institutions which
are callable quarterly at par until maturity. If called, replacement
funding will be provided by the counterparties at the then-prevailing
short-term market rate of interest for the remaining term-to-maturity
of the advances and repurchase agreements, subject to standard
terms and conditions. The weighted-average rate on borrowings
increased to 3.37% at December 31, 2004, from 3.24% at December 31,
2003. TCF does not utilize unconsolidated subsidiaries or special
purpose entities to provide off-balance-sheet borrowings. See Note
20 of Notes to Consolidated Financial Statements for information
relating to off-balance-sheet instruments.
Contractual Obligations and Commitments As disclosed in the Notes to Consolidated Financial Statements, TCF has certain obligations
and commitments to make future payments under contracts. At December 31, 2004, the aggregate contractual obligations (excluding bank
deposits) and commitments are as follows:
(In thousands) Payments Due by Period
Less than 1-3 4-5 After 5
Contractual Obligations Total 1 Year Years Years Years
Total borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,104,603 $2,277,682 $ 327,663 $ 125,049 $ 374,209
Annual rental commitments under non-cancelable
operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,441 23,894 40,631 33,823 72,093
Purchase obligations (construction contracts and
land purchase commitments for future branch sites) . . . . . . . . . 20,315 20,315–––
$3,295,359 $2,321,891 $ 368,294 $ 158,872 $ 446,302
(In thousands) Amount of Commitment – Expiration by Period
Less than 1-3 4-5 After 5
Other Commitments Total 1 Year Years Years Years
Commitments to lend:
Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,576,381 $ 8,217 $ 22,311 $ 38,240 $1,507,613
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 684,029 443,267 204,625 25,003 11,134
Leasing and equipment finance . . . . . . . . . . . . . . . . . . . . . . . . . . 72,614 72,614–––
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,343 55,343–––
Total commitments to lend . . . . . . . . . . . . . . . . . . . . . . . . . . 2,388,367 579,441 226,936 63,243 1,518,747
Loans serviced with recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,568 2,288 4,772 4,329 86,179
Standby letters of credit and guarantees on industrial
revenue bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,957 46,650 18,677 10,630 –
$2,561,892 $ 628,379 $ 250,385 $ 78,202 $1,604,926