TCF Bank 2009 Annual Report Download - page 87

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2009 Form 10-K : 71
The change in the balance sheet carrying values associated
with Company determined market priced nancial assets
carried at fair value during the year ended December 31, 2009
was not signicant.
Effective January 1, 2009, TCF adopted Financial
Accounting Standards Codication (FASC) 820-10-65,
Transition and Open Effective Date Information, which
requires TCF to apply the provisions of FASC 820, Fair Value
Measurements and Disclosures, to non-nancial assets
and liabilities measured on a non-recurring basis.
The following is a description of valuation methodologies
used for assets measured on a non-recurring basis.
 Long-lived assets held
for sale include real estate owned and repossessed and
returned equipment. The fair value of real estate owned is
based on independent full appraisals, real estate broker’s
price opinions, or automated valuation methods, less esti-
mated selling costs. Certain properties require assumptions
that are not observable in an active market in the deter-
mination of fair value. The fair value of repossessed and
returned equipment is based on available pricing guides,
auction results or third-party price opinions, less estimated
selling costs. Assets that are acquired through foreclosure,
repossession or return are initially recorded at the lower of
the loan or lease carrying amount or fair value less esti-
mated selling costs at the time of transfer to real estate
owned or repossessed and returned equipment. Long-lived
assets held for sale were written down $15.5 million, which
is included in other non-interest expense, during the year
ended December 31, 2009.
The table below presents the balances of assets measured at fair value on a non-recurring basis at December 31, 2009.
Readily Observable Company
Available Market Determined Total at
(In thousands) Market Prices(1) Prices(2) Market Prices(3) Fair Value
Loans (4) $ – $ – $ 62,794 $ 62,794
Real estate owned (5) – – 71,272 71,272
Repossessed and returned equipment (5) – 14,861 527 15,388
Total $ – $14,861 $134,593 $149,454
(1) Considered Level 1 under FASC 820, Fair Value Measurements and Disclosures.
(2) Considered Level 2 under FASC 820, Fair Value Measurements and Disclosures.
(3) Considered Level 3 under FASC 820, Fair Value Measurements and Disclosures, and is based on valuation models that use signicant assumptions that are not observable
in an active market.
(4) Represents the carrying value of loans for which adjustments are based on the appraisal value of the collateral.
(5) Amounts do not include assets held at cost at December 31, 2009.
Note 19. Fair Values of Financial Instruments
TCF is required to disclose the estimated fair value of
nancial instruments, both assets and liabilities on and off
the balance sheet, for which it is practicable to estimate fair
value. These fair value estimates are made at December 31,
based on relevant market information and information about
the nancial instruments. Fair value estimates are intended
to represent the price at which an asset could be sold at or
the price for which a liability could be settled for. However,
given there is no active market or observable market
transactions for many of TCF’s nancial instruments, the