TCF Bank 2011 Annual Report Download - page 113

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Note 21. Fair Values of Financial Instruments
TCF is required to disclose the estimated fair value of
financial instruments, both assets and liabilities on
and off the balance sheet, for which it is practicable to
estimate fair value. These fair value estimates were made
at December 31, 2011 and December 31, 2010 based on
relevant market information and information about the
financial instruments. Fair value estimates are intended
to represent the price at which an asset could be sold or a
liability could be settled. However, given there is no active
market or observable market transactions for many of TCF’s
financial instruments, the Company has made estimates
of fair values which are subjective in nature, involve
uncertainties and matters of significant judgment and
therefore cannot be determined with precision. Changes in
assumptions could significantly affect the estimated values.
The carrying amounts and estimated fair values of
TCF’s remaining financial instruments are set forth in the
following table. This information represents only a portion
of TCF’s balance sheet, and not the estimated value of
the Company as a whole. Non-financial instruments such
as the value of TCF’s branches and core deposits, leasing
operations and the future revenues from TCF’s customers
are not reflected in this disclosure. Therefore, this
information is of limited use in assessing the value of TCF.
At December 31,
2011 2010
(In thousands)
Carrying
Amount
Estimated
Fair Value
Carrying
Amount
Estimated
Fair Value
Financial instrument assets:
Cash and due from banks $ 1,389,704 $ 1,389,704 $ 663,901 $ 663,901
Investments 157,780 157,780 179,768 179,768
Securities available for sale 2,324,038 2,324,038 1,931,174 1,931,174
Loans and leases held for sale 14,321 14,524 – –
Interest only strips 22,436 22,436 – –
Loans:
Consumer real estate and other 6,933,804 6,583,570 7,195,269 6,907,960
Commercial real estate 3,198,698 3,154,724 3,328,216 3,222,201
Commercial business 250,794 242,331 317,987 303,172
Equipment finance loans 1,110,803 1,118,271 939,474 942,167
Inventory finance loans 624,700 623,651 792,354 792,940
Allowance for loan losses (1) (255,672) – (265,819) –
Total financial instrument assets $15,771,406 $15,631,029 $15,082,324 $14,943,283
Financial instrument liabilities:
Checking, savings and money market deposits $11,136,389 $11,136,389 $10,556,788 $10,556,788
Certificates of deposit 1,065,615 1,068,793 1,028,327 1,031,090
Short-term borrowings 6,416 6,416 126,790 126,790
Long-term borrowings 4,381,664 4,913,637 4,858,821 5,280,615
Forward foreign currency contracts 284 284 1,842 1,842
Total financial instrument liabilities $16,590,368 $17,125,519 $16,572,568 $16,997,125
Financial instruments with off-balance sheet risk: (2)
Commitments to extend credit (3) $ 31,210 $ 31,210 $ 33,909 $ 33,909
Standby letters of credit (4) (71) (71) (92) (92)
Total financial instruments with off-balance-sheet risk $ 31,139 $ 31,139 $ 33,817 $ 33,817
(1) Expected credit losses are included in the estimated fair values.
(2) Positive amounts represent assets, negative amounts represent liabilities.
(3) Carrying amounts are included in other assets.
(4) Carrying amounts are included in accrued expenses and other liabilities.
952011 Form 10-K