TCF Bank 2003 Annual Report Download - page 44

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42 TCF Financial Corporation and Subsidiaries
Borrowings Borrowings totaled $2.4 billion at December 31, 2003,
down $695.5 million from year-end 2002. The decrease was primarily
due to decreases in residential real estate loans and mortgage-
backed securities which reduces TCF’s reliance on borrowings. See
Notes 12 and 13 of Notes to Consolidated Financial Statements for
detailed information on TCF’s borrowings. Included in long-term
borrowings at December 31, 2003 are $767.5 million of fixed-rate
FHLB advances and repurchase agreements with other financial
institutions which are callable by the counterparty at par on certain
anniversary dates and, for most, quarterly thereafter until maturity.
If called, replacement funding will be provided by the counterparties
at the then-prevailing short-term market rate of interest for the
remaining term-to-maturity of the advances and repurchase agree-
ments, subject to standard terms and conditions. The weighted-
average rate on borrowings decreased to 3.24% at December 31,
2003, from 4.43% at December 31, 2002 as a result of the previously
discussed prepayments of FHLB advances and generally lower inter-
est rates on short-term borrowings.
TCF does not utilize unconsolidated subsidiaries or special purpose
entities to provide off-balance-sheet borrowings. See Note 20 of
Notes to Consolidated Financial Statements for information relating
to off-balance-sheet instruments.
Contractual Obligations and Commitments As disclosed in the Notes to Consolidated Financial Statements, TCF has certain obligations
and commitments to make future payments under contracts. At December 31, 2003, the aggregate contractual obligations (excluding bank
deposits) and commitments are as follows:
(In thousands) Payments Due by Period
Less than 1-3 4-5 After 5
Contractual Obligations Total 1 Year Years Years Years
Total borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,414,825 $ 925,019 $1,067,253 $ 122,553 $ 300,000
Annual rental commitments under non-cancelable
operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164,784 22,310 42,601 31,517 68,356
Purchase obligations (construction contracts and
land purchase commitments for future branch sites) . . . . . . . . . . 13,807 13,807 – – –
$2,593,416 $ 961,136 $1,109,854 $ 154,070 $ 368,356
(In thousands) Amount of Commitment – Expiration by Period
Less than 1-3 4-5 After 5
Other Commitments Total 1 Year Years Years Years
Commitments to lend:
Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,382,348 $ 25,083 $ 15,050 $ 19,470 $1,322,745
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 624,664 443,012 164,507 4,598 12,547
Leasing and equipment finance . . . . . . . . . . . . . . . . . . . . . . . . . . 57,485 57,485 – – –
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,007 56,007 – – –
Total commitments to lend . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,120,504 581,587 179,557 24,068 1,335,292
Loans serviced with recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,765 3,096 6,828 6,529 114,312
Standby letters of credit and guarantees on industrial
revenue bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,796 18,369 21,196 160 1,071
$2,292,065 $ 603,052 $ 207,581 $ 30,757 $1,450,675