TCF Bank 2001 Annual Report Download - page 58

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56
At December 31, 2001, 2000 and 1999, TCF was servicing real
estate loans for others with aggregate unpaid principal balances of
approximately $4.7 billion, $4 billion and $2.9 billion, respectively.
During 2000, TCF purchased the bulk servicing rights on $933 mil-
lion of residential mortgage loans at a cost of $13.8 million. During
1999, TCF sold servicing rights on $344.6 million of loans serviced
for others at a net gain of $3.1 million. No servicing rights were sold
during 2000 or 2001.
The estimated fair value of mortgage servicing rights included in
the Consolidated Statements of Financial Condition at December 31,
2001 was approximately $64.7 million. The estimated fair value of
capitalized mortgage servicing rights is based on estimated cash flows
discounted using rates commensurate with the risks involved.
Assumptions regarding prepayments, defaults and interest rates are
determined using available market information.
TCF leases certain premises and equipment under operating leases. Net lease expense was $20.7 million, $20.3 million and $19.6 mil-
lion in 2001, 2000 and 1999, respectively.
At December 31, 2001, the total annual minimum lease commitments for operating leases were as follows:
(In thousands)
2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,649
2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,255
2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,812
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,410
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,488
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,434
$118,048
9Mortgage Servicing Rights
Mortgage servicing rights, net of valuation allowance, are summarized as follows:
Year Ended December 31,
(In thousands) 2001 2000 1999
Balance at beginning of year, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,086 $ 22,614 $ 21,566
Purchases and originations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,139 22,798 6,991
Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,564) (5,326) (4,737)
Sales of servicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . –– (1,037)
Valuation adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,400) – (169)
Balance at end of year, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 58,261 $ 40,086 $ 22,614
The valuation allowance for mortgage servicing rights is summarized as follows:
Year Ended December 31,
(In thousands) 2001 2000 1999
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 946 $ 946 $ 2,738
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,400 – 169
Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . –– (1,961)
Balance at end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,346 $ 946 $ 946