TCF Bank 2011 Annual Report Download - page 90

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The following table provides interest income recognized on loans and leases in non-accrual status and contractual interest
that would have been recorded had the loans and leases performed in accordance with their original contractual terms.
For the Year Ended December 31,
(In thousands) 2011 2010 2009
Contractual interest due on non-accrual loans and leases $37,645 $40,016 $31,368
Interest income recognized on loans and leases in non-accrual status 7,371 6,773 3,010
Unrecognized interest income $30,274 $33,243 $28,358
The following table summarizes consumer real estate loans to customers in bankruptcy.
At December 31,
(In thousands) 2011 2010
Consumer real estate loans to customers in bankruptcy:
0-59 days delinquent and accruing $74,347 $66,166
60+ days delinquent and accruing 1,112 1,849
Non-accrual 17,531 22,782
Total consumer real estate loans to customers in bankruptcy $92,990 $90,797
For the years ended December 31, 2011 and 2010,
interest income would have been reduced by approximately
$70 thousand and $79 thousand, respectively, had the
accrual of interest income been discontinued upon
notification of bankruptcy.
Loan Modifications for Borrowers with Financial
Difficulties Included within loans and leases are certain
loans that have been modified in order to maximize
collection of loan balances. If, for economic or legal
reasons related to a customer’s financial difficulties, TCF
grants a concession from the original terms and conditions
on the loan, the modified loan is classified as a TDR.
During the third quarter of 2011, TCF adopted
Accounting Standards Update (“ASU”) 2011-02,
A Creditor’s Determination of Whether a Restructuring is a
Troubled Debt Restructuring (Topic 310), which modified
guidance for identifying modifications of receivables that
constitute a TDR. As a result of adopting the provisions of
ASU 2011-02, TCF reassessed all loan modifications that
occurred after December 31, 2010 for identification as
TDRs. TCF adopted the provisions of the ASU that require
impaired loan accounting and reporting for newly identified
TDRs as of July 1, 2011. The total of newly identified TDRs
was $46.3 million, of which $20.7 million were accruing
consumer real estate loans and $23.7 million were accruing
commercial loans. Due to the increase in accruing TDRs,
the consumer real estate provision for credit losses on
impaired loans increased $2.2 million in the third quarter
of 2011. There was no increase in commercial provision as a
result of the newly identified TDRs.
TCF held consumer real estate loan TDRs of $479.8
million and $367.9 million at December 31, 2011 and
December 31, 2010, respectively, of which $433.1 million
and $337.4 million were accruing at December 31, 2011
and December 31, 2010, respectively. TCF also held $181.6
million and $66.3 million of commercial loan TDRs at
December 31, 2011 and December 31, 2010, respectively,
of which $98.4 million and $48.8 million were accruing at
December 31, 2011 and December 31, 2010, respectively.
The amount of additional funds committed to commercial
borrowers in TDR status was $8.5 million and $2.2 million
at December 31, 2011 and December 31, 2010, respectively.
When a loan is modified as a TDR, there is not a direct,
material impact on the loans within the Consolidated
Statements of Financial Condition, as principal balances
are generally not forgiven. Loan modifications are not
reported in calendar years after modification if the loans
were modified at an interest rate equal to the yields of
new loan originations with comparable risk and the loans
are performing based on the terms of the restructuring
agreements. All loans classified as TDRs are considered
to be impaired.
72 TCF Financial Corporation and Subsidiaries