TCF Bank 2005 Annual Report Download - page 74

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54 TCF Financial Corporation and Subsidiaries
The following table represents the components of mortgage
banking revenue:
Year Ended December 31,
(In thousands) 2005 2004 2003
Servicing income $13,998 $17,349 $ 20,533
Less mortgage servicing:
Amortization 10,108 13,091 23,679
(Recovery) provision
for impairment (1,000) 1,500 21,154
Subtotal 9,108 14,591 44,833
Net servicing
income (loss) 4,890 2,758 (24,300)
Gains on sales of loans (1) –8,107 33,505
Other income 688 2,095 3,514
Total mortgage
banking revenue $ 5,578 $12,960 $ 12,719
(1) Beginning in 2005, TCF’s mortgage banking business no longer originates or
sells loans.
Gains on sales of loans include the changes in fair value of
residential mortgage loans held for sale, loan applications in
process and related forward sales contracts. At December 31,
2004 and 2005, there were no residential mortgage loans held
for sale or related forward sales contracts.
At December 31, 2005, 2004 and 2003, TCF was servicing real
estate loans for others with aggregate unpaid principal balances
of approximately $3.4 billion, $4.5 billion and $5.1 billion,
respectively. At December 31, 2005 and 2004, TCF had custodial
funds of $74.1 million and $106.1 million, respectively, related to
the servicing of residential real estate loans, which are included
in deposits in the Consolidated Statements of Financial Condition.
These custodial deposits relate primarily to mortgage servicing
operations and represent funds due to investors on mortgage
loans serviced by TCF and customer funds held for real estate
taxes and insurance.
The estimated fair value of mortgage servicing rights
included in the Consolidated Statements of Financial Condition
at December 31, 2005 was approximately $45.7 million. The
estimated fair value is based on estimated cash flows discounted
using rates management believes are commensurate with the
risks involved. Assumptions regarding prepayments, defaults and
interest rates are determined using available market information.
Note 10. Deposits
Deposits are summarized as follows:
At December 31,
2005 2004
Rate at % of Rate at % of
(Dollars in thousands) Year End Amount Total Year End Amount Total
Checking:
Non-interest bearing –% $2,445,411 26.9% –% $2,378,697 29.9%
Interest bearing 1.60 1,834,442 20.1 .55 1,527,290 19.2
Total checking .69 4,279,853 47.0 .22 3,905,987 49.1
Savings 1.77 2,238,204 24.6 .59 1,927,872 24.2
Money market 1.97 677,017 7.4 .59 659,686 8.3
Total checking, savings,
and money market 1.14 7,195,074 79.0 .37 6,493,545 81.6
Certificates of deposit 3.51 1,915,620 21.0 2.11 1,468,650 18.4
Total deposits 1.64 $9,110,694 100.0% .69 $7,962,195 100.0%