TCF Bank 2000 Annual Report Download - page 59

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As discussed above, the carrying amounts of certain of the Company’s financial instruments approximate their fair value. The carrying
amounts disclosed below are included in the Consolidated Statements of Financial Condition under the indicated captions, except where
noted otherwise. The carrying amounts and fair values of the Company’s remaining financial instruments are set forth in the following table:
At December 31,
2000 1999
Carrying Estimated Carrying Estimated
(In thousands) Amount Fair Value Amount Fair Value
Financial instrument assets:
Loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 227,779 $ 231,306 $ 198,928 $ 200,617
Loans:
Residential real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,673,831 3,712,568 3,919,678 3,825,981
Commercial real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,371,841 1,381,222 1,073,472 1,061,374
Commercial business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410,422 410,003 351,353 347,108
Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,234,134 2,408,672 2,058,584 2,116,554
Equipment finance loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207,059 210,434 44,160 44,160
Allowance for loan losses (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . (60,816) – (51,847) –
$8,064,250 $8,354,205 $ 7,594,328 $ 7,595,794
Financial instrument liabilities:
Certificates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,805,605 $2,836,340 $ 2,871,847 $ 2,901,177
Securities sold under agreements to repurchase . . . . . . . . . . . . . . . 994,320 1,003,645 1,010,000 1,010,000
Federal Home Loan Bank advances . . . . . . . . . . . . . . . . . . . . . . . . 1,891,037 1,903,898 1,759,787 1,733,859
Other borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,125 41,694 135,732 135,301
$5,733,087 $5,785,577 $ 5,777,366 $ 5,780,337
Financial instruments with off-balance-sheet risk: (2)
Commitments to extend credit (3) . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,045 $ (342) $ 8,572 $ (916)
Standby letters of credit(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) (2) (1) (2)
Forward mortgage loan sales commitments(3) . . . . . . . . . . . . . . . . . 50 (1,151) 39 427
Federal Home Loan Bank advance forward settlements . . . . . . . . . . – (6,985) – 1,509
$ 12,093 $ (8,480) $ 8,610 $ 1,018
(1) Excludes the allowance for lease losses.
(2) Positive amounts represent assets, negative amounts represent liabilities.
(3) Carrying amounts are included in other assets.
(4) Carrying amounts are included in accrued expenses and other liabilities.
Deposits – The fair value of checking, passbook and statement
and money market deposits is deemed equal to the amount payable
on demand. The fair value of certificates is estimated based on dis-
counted cash flow analyses using interest rates offered by TCF for
certificates with similar remaining maturities.
Borrowings – The carrying amounts of short-term borrowings
approximate their fair values. The fair values of TCF’s long-term
borrowings are estimated based on quoted market prices or dis-
counted cash flow analyses using interest rates for borrowings of
similar remaining maturities.
Financial Instruments with Off-Balance-Sheet Risk –
The fair values of residential commitments to extend credit and for-
ward mortgage loan sales commitments associated with residential
loans held for sale are based upon quoted market prices. The fair
values of TCF’s remaining commitments to extend credit and
standby letters of credit are estimated using fees currently charged
to enter into similar agreements. For fixed-rate loan commitments
and standby letters of credit issued in conjunction with fixed-rate
loan agreements, fair value also considers the difference between
current levels of interest rates and the committed rates. The fair
values of forward settlements of FHLB advances are based on the
difference between current levels of interest rates and the com-
mitted rates.
TCF has not incurred, and does not anticipate, significant
losses as a result of the recourse provisions associated with its bal-
ance of VA loans serviced with partial recourse. As a result, the car-
rying amounts and related estimated fair values of these financial
instruments were not material at December 31, 2000 and 1999.
57
TCF