TCF Bank 2007 Annual Report Download - page 73

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2007 Form 10-K | 53
Note 2. Cash and Due from Banks
At December 31, 2007, TCF was required by Federal Reserve
Board regulations to maintain reserve balances of $97.9
million in cash on hand or at the Federal Reserve Bank.
Note 3. Investments
The carrying values of investments, which approximate their
fair values, consist of the following.
At December 31,
(In thousands) 2007 2006
Federal Home Loan Bank stock, at cost:
Des Moines $115,848 $ 73,630
Chicago 4,617 4,617
Subtotal 120,465 78,247
Federal Reserve Bank stock, at cost 20,423 20,023
Federal funds sold –71,000
Interest-bearing deposits with banks
and other 7,379 859
Total investments $148,267 $170,129
The investments in FHLB stock are required investments
related to TCF’s borrowings from these banks. All new FHLB
borrowing activity since 2000 is done with the FHLB of
Des Moines. FHLBs obtain their funding primarily through
issuance of consolidated obligations of the Federal Home
Loan Bank system. The U.S. Government does not guarantee
these obligations, and each of the 12 FHLBs are generally
jointly and severally liable for repayment of each other’s debt.
Therefore, TCF’s investments in these banks could be adversely
impacted by the financial operations of the FHLBs and actions
by the Federal Housing Board’s Office of Supervision.
The carrying values and yields on investments at
December 31, 2007, by contractual maturity, are shown below.
Carrying
(Dollars in thousands) Value Yield
Due in 1 year or less $ 14 2.46%
Due in 5-10 years 200 2.00
Due after 10 years 7,164 4.38
No stated maturity 140,889 4.57
Total $148,267 4.56
Note 4. Securities Available for Sale
Securities available for sale consist of the following.
At December 31,
2007 2006
Gross Gross Gross Gross
Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair
(Dollars in thousands) Cost Gains Losses Value Cost Gains Losses Value
Mortgage-backed securities:
U.S. Government sponsored
enterprises and federal
agencies $1,975,817 $2,493 $(18,681) $1,959,630 $1,843,744 $880 $(34,046) $1,810,578
Other 3,992 – (190) 3,801 4,719 – (171) 4,548
Other securities 250 – – 250 1,000 – – 1,000
Total $1,980,059 $2,493 $(18,871) $1,963,681 $1,849,463 $880 $(34,217) $1,816,126
Weighted-average yield 5.27% 5.37%