TCF Bank 2014 Annual Report Download - page 48

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Non-accrual Loans and Leases and Other Real Estate Owned The following table summarizes TCF’s non-accrual loans and
leases and other real estate owned.
At December 31,
(Dollars in thousands) 2014 2013 2012 2011 2010
Consumer real estate:
First mortgage lien $137,790 $180,811 $199,631 $129,114 $140,871
Junior lien 35,481 38,222 35,269 20,257 26,626
Total consumer real estate 173,271 219,033 234,900 149,371 167,497
Commercial:
Commercial real estate 24,554 36,178 118,300 104,744 104,305
Commercial business 481 4,361 9,446 22,775 37,943
Total commercial 25,035 40,539 127,746 127,519 142,248
Leasing and equipment finance 12,670 14,041 13,652 20,583 34,407
Inventory finance 2,082 2,529 1,487 823 1,055
Auto finance 3,676 470 101 – –
Other –410 1,571 15 50
Total non-accrual loans and leases 216,734 277,022 379,457 298,311 345,257
Other real estate owned 65,650 68,874 96,978 134,898 141,065
Total non-accrual loans and leases and other
real estate owned $282,384 $345,896 $476,435 $433,209 $486,322
Non-accrual loans and leases as a percentage of total
loans and leases 1.32% 1.75% 2.46% 2.11% 2.33%
Non-accrual loans and leases and other real estate
owned as a percentage of total loans and leases
and other real estate owned 1.71 2.17 3.07 3.03 3.26
Allowance for loan and lease losses as a percentage
of non-accrual loans and leases 75.75 91.05 70.40 85.71 76.99
The following table summarizes TCF’s non-accrual TDR loans included in the table above.
At December 31,
(In thousands) 2014 2013 2012 2011 2010
Consumer real estate $ 87,685 $134,487 $173,587 $ 46,728 $30,511
Commercial 11,265 26,209 92,311 83,154 17,487
Leasing and equipment finance 1,953 2,447 2,794 979 1,284
Inventory finance 37 ––––
Auto finance 3,676 470 101 – –
Other –1–––
Total $104,616 $163,614 $268,793 $130,861 $49,282
Non-accrual loans and leases at December 31, 2014 decreased $60.3 million, or 21.8%, from December 31, 2013, primarily due
to the portfolio sale of consumer real estate TDR loans which included some non-accrual TDR loans, continued efforts to actively
work out commercial loans and improved credit quality in the commercial portfolio.
Consumer real estate loans are generally placed on non-accrual status once they become 90 days past due and are charged-off to
the estimated fair value of underlying collateral, less estimated selling costs, no later than 150 days past due. Commercial loans
are generally placed on non-accrual status once they become 90 days past due unless they are well secured and in the process of
collection. Auto loans are generally charged-off to the fair value of the collateral, less estimated selling costs, upon entering
non-accrual status no later than 120 days past due. Any necessary additional reserves are established for commercial loans,
leasing and equipment finance loans and leases and inventory finance loans when reported as non-accrual. Most of TCF’s
non-accrual loans and past due loans are secured by real estate. Given the nature of these assets and the related mortgage
foreclosure, property sale and, if applicable, mortgage insurance claims processes, it can take 18 months or longer for a loan to
migrate from initial delinquency to final disposition. This resolution process generally takes much longer for loans secured by real
estate than for unsecured loans or loans secured by other property primarily due to state real estate foreclosure laws.
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