TCF Bank 2001 Annual Report Download - page 60

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The securities underlying the repurchase agreements are book
entry securities. During the borrowing period, book entry securities
were delivered by appropriate entry into the counterparties’ accounts
through the Federal Reserve System. The dealers may sell, loan or
otherwise dispose of such securities to other parties in the normal
course of their operations, but have agreed to resell to TCF identi-
cal or substantially the same securities upon the maturities of the
agreements. At December 31, 2001, all of the securities sold under
repurchase agreements provided for the repurchase of identical
securities. At December 31, 2001, $669.7 million of securities sold
under repurchase agreements with an interest rate of 1.83% maturing
in 2002 were collateralized by mortgaged-backed securities having a
carrying value of $689.5 million and a market value of $692 million.
TCF Financial Corporation has a $105 million bank line of
credit maturing in April 2002 which is unsecured and contains
certain covenants common to such agreements with which TCF is
in compliance. The interest rate on the line of credit is based on
either the prime rate or LIBOR. TCF has the option to select the
interest rate index and term for advances on the line of credit. The
line of credit may be used for appropriate corporate purposes,
including serving as a back-up line of credit to support the redemp-
tion of TCF’s commercial paper.
TCF Financial Corporation has a $50 million commercial paper
program which is unsecured and contains certain covenants common
to such programs with which TCF is in compliance. Any usage under
the commercial paper program requires an equal amount of back-up
support by the bank line of credit. Commercial paper generally
matures within 90 days, although it may have a term of up to 270 days.
11 Short-term Borrowings
The following table sets forth selected information for short-term borrowings (borrowings with an original maturity of less than one year)
for each of the years in the three year period ended December 31, 2001:
2001 2000 1999
(Dollars in thousands) Amount Rate Amount Rate Amount Rate
At December 31,
Federal funds purchased . . . . . . . . . . . . . $ 48,000 1.73% $ 91,000 6.49% $ – –%
Securities sold under repurchase
agreements . . . . . . . . . . . . . . . . . . . . 669,734 1.83 794,320 6.61 960,000 5.75
Treasury, tax and loan note payable. . . . . . 125 1.40 13,375 5.73 42,625 4.53
Commercial paper . . . . . . . . . . . . . . . . . –– – – 22,357 6.21
Line of credit. . . . . . . . . . . . . . . . . . . . . 2,000 2.41 – – 42,000 6.92
Total . . . . . . . . . . . . . . . . . . . . . . . $ 719,859 1.82 $ 898,695 6.58 $1,066,982 5.76
Year ended December 31,
Average daily balance
Federal funds purchased . . . . . . . . . . . . . $ 120,812 3.77% $ 10,989 6.68% $ 1,977 4.81%
Securities sold under repurchase
agreements . . . . . . . . . . . . . . . . . . . . 908,016 4.14 664,015 6.41 477,382 5.38
Treasury, tax and loan note payable. . . . . . 62,111 3.61 68,631 6.14 53,999 4.72
Commercial paper . . . . . . . . . . . . . . . . . ––4,843 6.18 22,621 5.62
Line of credit. . . . . . . . . . . . . . . . . . . . . 6,749 5.57 18,824 7.58 45,245 6.03
Total . . . . . . . . . . . . . . . . . . . . . . . $1,097,688 4.08 $ 767,302 6.41 $ 601,224 5.38
Maximum month-end balance . . . . . . . . . . .
Federal funds purchased . . . . . . . . . . . . . $ 304,000 N.A. $ 91,000 N.A. $ 10,000 N.A.
Securities sold under repurchase
agreements . . . . . . . . . . . . . . . . . . . . 1,047,301 N.A. 1,070,790 N.A. 960,000 N.A.
Treasury, tax and loan note payable. . . . . . 262,680 N.A. 250,000 N.A. 258,837 N.A.
Commercial paper . . . . . . . . . . . . . . . . . – N.A. 19,039 N.A. 45,073 N.A.
Line of credit. . . . . . . . . . . . . . . . . . . . . 30,500 N.A. 79,000 N.A. 89,000 N.A.
N.A. Not Applicable