TCF Bank 2004 Annual Report Download - page 76

74 TCF Financial Corporation and Subsidiaries
Note 25. Business Segments
Banking, leasing and equipment finance, and mortgage banking
have been identified as reportable operating segments. Banking
includes the following operating units that provide financial services
to customers: deposits and investment products, commercial lend-
ing, consumer lending, residential lending and treasury services.
Management of TCF’s banking area is organized by state. The sepa-
rate state operations have been aggregated for purposes of segment
disclosures. Leasing and equipment finance provides a broad range
of comprehensive leasing and equipment finance products address-
ing the financing needs of diverse companies. Mortgage banking
activities represent the mortgage servicing business and previously
included the origination and purchase of residential mortgage loans
primarily for sale to third parties, generally with servicing retained.
In addition, TCF operates a bank holding company (“parent company”)
and has corporate functions that provide data processing, bank
operations and other professional services to the operating segments.
TCF evaluates performance and allocates resources based on
the segments’ net income. The business segments follow generally
accepted accounting principles as described in the Summary of
Significant Accounting Policies. TCF generally accounts for inter-
segment sales and transfers at cost.
The following table sets forth certain information about the reported profit or loss and assets of each of TCF’s reportable segments, including
a reconciliation of TCF’s consolidated totals. The results of TCF’s parent company and corporate functions comprise the “other” category in the
table below.
Leasing and Eliminations
Equipment Mortgage and
(In thousands) Banking Finance Banking Other Reclassifications Consolidated
At or For the Year Ended December 31, 2004:
Revenues from external customers:
Interest income . . . . . . . . . . . . . . . . . . . . . $ 529,281 $ 89,364 $ 4,164 $ – $ – $ 622,809
Non-interest income . . . . . . . . . . . . . . . . . 426,867 50,697 12,946 (44) – 490,466
Total . . . . . . . . . . . . . . . . . . . . . . . . . . $ 956,148 $ 140,061 $ 17,110 $ (44) $ – $ 1,113,275
Net interest income . . . . . . . . . . . . . . . . . . . . . $ 427,483 $ 55,699 $ 8,204 $ (831) $ 1,336 $ 491,891
Provision for credit losses . . . . . . . . . . . . . . . . . 4,141 6,806 – – – 10,947
Non-interest income . . . . . . . . . . . . . . . . . . . . . 426,867 50,697 14,282 95,682 (97,062) 490,466
Non-interest expense . . . . . . . . . . . . . . . . . . . . 516,629 43,718 27,371 94,942 (95,726) 586,934
Income tax expense (benefit) . . . . . . . . . . . . . . 113,644 20,000 (1,727) (2,434) – 129,483
Net income (loss) . . . . . . . . . . . . . . . . . . . . $ 219,936 $ 35,872 $ (3,158) $ 2,343 $ – $ 254,993
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,903,232 $ 1,449,424 $ 76,468 $ 135,615 $(1,224,172) $12,340,567
At or For the Year Ended December 31, 2003:
Revenues from external customers:
Interest income . . . . . . . . . . . . . . . . . . . . . $ 545,764 $ 81,912 $ 13,843 $ – $ – $ 641,519
Non-interest income . . . . . . . . . . . . . . . . . 355,088 51,088 12,761 342 – 419,279
Total . . . . . . . . . . . . . . . . . . . . . . . . . . $ 900,852 $ 133,000 $ 26,604 $ 342 $ – $ 1,060,798
Net interest income . . . . . . . . . . . . . . . . . . . . . $ 415,163 $ 45,358 $ 21,357 $ (1,074) $ 341 $ 481,145
Provision for credit losses . . . . . . . . . . . . . . . . . 4,361 8,171–––12,532
Non-interest income . . . . . . . . . . . . . . . . . . . . . 355,088 51,088 13,102 89,059 (89,058) 419,279
Non-interest expense . . . . . . . . . . . . . . . . . . . . 489,212 41,977 29,963 87,674 (88,717) 560,109
Income tax expense (benefit) . . . . . . . . . . . . . . 96,449 17,031 1,590 (3,165) - 111,905
Net income . . . . . . . . . . . . . . . . . . . . . . . . . $ 180,229 $ 29,267 $ 2,906 $ 3,476 $ - $ 215,878
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,915,010 $ 1,216,854 $ 173,867 $ 126,478 $ (1,113,194) $11,319,015
At or For the Year Ended December 31, 2002:
Revenues from external customers:
Interest income . . . . . . . . . . . . . . . . . . . . . $ 632,804 $ 85,447 $ 15,112 $ – $ – $ 733,363
Non-interest income . . . . . . . . . . . . . . . . . 359,895 51,806 6,980 1,081 – 419,762
Total . . . . . . . . . . . . . . . . . . . . . . . . . . $ 992,699 $ 137,253 $ 22,092 $ 1,081 $ – $ 1,153,125
Net interest income . . . . . . . . . . . . . . . . . . . . . $ 437,049 $ 41,374 $ 20,676 $ (1,210) $ 1,336 $ 499,225
Provision for credit losses . . . . . . . . . . . . . . . . . 12,778 9,228 – – – 22,006
Non-interest income . . . . . . . . . . . . . . . . . . . . . 359,895 51,806 8,316 95,272 (95,527) 419,762
Non-interest expense . . . . . . . . . . . . . . . . . . . . 473,467 40,983 24,796 94,233 (94,191) 539,288
Income tax expense (benefit) . . . . . . . . . . . . . . 109,959 15,497 1,511 (2,205) – 124,762
Net income . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,740 $ 27,472 $ 2,685 $ 2,034 $ – $ 232,931
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,784,981 $ 1,100,744 $ 447,840 $ 96,300 $ (1,227,796) $ 12,202,069