TCF Bank 2010 Annual Report Download - page 53

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• 37 •
2010 Form 10-K
At December 31, 2010, all consumer real estate TDRs
were temporary modifications, except for $31.1 million
which were permanent modifications. Temporary modifica-
tions are no longer classified as TDRs once they complete
the temporary modification term (typically 12 to 18 months)
and the customer is performing for three months under the
original contractual terms.
Non-accrual Loans and Leases The increase in
non-accrual loans and leases from December 31, 2009
was primarily due to increases in commercial and consumer
real estate non-accrual loans. There were fewer addi-
tions and higher repayments in 2010, as compared with
2009. Consumer real estate loans are charged-off to their
estimated realizable values upon entering non-accrual sta-
tus. Any necessary additional reserves are established for
commercial, leasing and equipment finance and inventory
finance loans and leases when reported as non-accrual.
Most of TCF’s non-accrual loans and past due loans are
secured by real estate. Given the nature of these assets
and the related mortgage foreclosure, property sale and,
if applicable, mortgage insurance claims processes, it can
take 18 months or longer for a loan to migrate from initial
delinquency to final disposition. This resolution process
generally takes much longer for loans secured by real
estate than for unsecured loans or loans secured by other
property primarily due to state real estate foreclosure laws.
Non-accrual loans and leases are summarized in the following table.
At December 31,
(In thousands) 2010 2009 2008 2007 2006
Consumer real estate
First mortgage lien $140,871 $118,313 $ 71,078 $23,750 $14,001
Junior lien 26,626 20,846 11,793 5,391 5,291
Total consumer real estate 167,497 139,159 82,871 29,141 19,292
Consumer other 50 141 65 6 27
Total consumer real estate and other 167,547 139,300 82,936 29,147 19,319
Commercial real estate 104,305 77,627 54,615 19,999 12,849
Commercial business 37,943 28,569 14,088 2,658 3,421
Total commercial real estate
and commercial business 142,248 106,196 68,703 22,657 16,270
Leasing and equipment finance 34,407 50,008 20,879 8,050 7,596
Inventory finance 1,055 771 – – –
Total non-accrual loans and leases $345,257 $296,275 $172,518 $59,854 $43,185