TCF Bank 2006 Annual Report Download - page 74

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transactions with unrelated persons. The aggregate amount
of loans to executive officers of TCF was $30 thousand and
$115 thousand at December 31, 2006 and 2005, respectively.
In the opinion of management, the above mentioned
loans to outside directors and their related interests and
executive officers do not represent more than a normal
risk of collection.
Future minimum lease payments for direct financing and
sales-type leases as of December 31, 2006 are as follows.
(In thousands) Total
2007 $ 516,704
2008 364,753
2009 245,090
2010 150,641
2011 75,466
Thereafter 22,189
Total $1,374,843
54 TCF Financial Corporation and Subsidiaries
Note 6. Allowance for Loan and Lease Losses
Following is a summary of the allowance for loan and lease losses and selected statistics.
Year Ended December 31,
(Dollars in thousands) 2006 2005 2004
Balance at beginning of year $ 55,823 $ 75,393 $ 76,619
Change in accounting principle(1) –– (4,159)
Adjusted balance at beginning of year 55,823 75,393 72,460
Provision for credit losses 20,689 8,586 18,627
Charge-offs (33,221) (47,904) (34,595)
Recoveries 15,252 19,748 17,110
Net charge-offs (17,969) (28,156) (17,485)
Acquired allowance –– 1,791
Balance at end of year $ 58,543 $ 55,823 $ 75,393
Net charge-offs as a percentage of average loans and leases .17% .29% .20%
Allowance for loan and lease losses as a percentage of total loans and leases at year end .52 .55 .80
(1) See Note 25: Accounting for Deposit Account Overdrafts.
Information relating to impaired loans and non-accrual loans and leases is as follows.
At or For the Year Ended December 31,
(In thousands) 2006 2005 2004
Impaired loans and leases:
Balance, at year-end $17,512 $ 3,791 $ 8,092
Related allowance for loan and lease losses, at year-end(1) 2,470 1,642 3,668
Average impaired loans and leases 8,169 5,345 9,840
Interest income recognized on impaired loans and leases (cash basis) 603 76 108
Other non-accrual loans and leases:
Balance, at year-end 25,673 25,857 38,786
Interest income recognized on non-accrual loans and leases (cash basis) 978 960 1,409
Contractual interest on non-accrual loans and leases(2) 3,557 2,900 3,881
(1) There were no impaired loans and leases at December 31, 2006, 2005 and 2004 which did not have a related allowance for loan and lease losses.
(2) Represents interest which would have been recorded had the loans and leases performed in accordance with their contractual terms.
At December 31, 2006, 2005 and 2004, TCF had no material loans or leases outstanding with terms that had been modified
in troubled debt restructurings. There were no material commitments to lend additional funds to customers whose loans or
leases were classified as non-accrual at December 31, 2006. At December 31, 2006, accruing loans and leases delinquent for
90 days or more was $12.2 million, compared with $6.5 million at December 31, 2005.