TCF Bank 2011 Annual Report Download - page 63

Contractual Obligations and Commitments As disclosed in Notes 11 and 12 of Notes to Consolidated Financial
Statements, TCF has certain obligations and commitments to make future payments under contracts. At December 31, 2011,
the aggregate contractual obligations (excluding bank deposits) and commitments are as follows.
(In thousands) Payments Due by Period
Contractual Obligations Total
Less than
1 Year 1-3 Years 3-5 Years
More than
5 Years
Total borrowings (1) $4,388,080 $ 64,038 $523,671 $2,134,348 $1,666,023
Annual rental commitments under non-cancelable
operating leases 214,131 26,193 52,359 44,964 90,615
Campus marketing agreements 47,214 3,159 7,164 6,033 30,858
Total $4,649,425 $ 93,390 $583,194 $2,185,345 $1,787,496
(In thousands) Amount of Commitment – Expiration by Period
Commitments Total
Less than
1 Year 1-3 Years 3-5 Years
More than
5 Years
Commitments to lend:
Consumer real estate and other $1,349,779 $ 89,852 $106,718 $ 79,754 $1,073,455
Commercial 279,076 156,461 49,401 47,239 25,975
Leasing and equipment finance 177,534 177,534 – – –
Total commitments to lend 1,806,389 423,847 156,119 126,993 1,099,430
Standby letters of credit and guarantees
on industrial revenue bonds 26,964 19,842 415 6,707 –
Total $1,833,353 $443,689 $156,534 $ 133,700 $1,099,430
(1) Total borrowings excludes interest.
Commitments to lend are agreements to lend to a
customer provided there is no violation of any condition
in the contract. These commitments generally have fixed
expiration dates or other termination clauses and may
require payment of a fee. Since certain of the commitments
are expected to expire without being drawn upon, the
total commitment amounts do not necessarily represent
future cash requirements. By contract, the Company, in
its sole discretion, may terminate or otherwise modify the
credit arrangement in place with a customer. Collateral
predominantly consists of residential and commercial
real estate. The credit facilities established for inventory
finance customers are discretionary credit arrangements
which do not obligate the Company to lend.
Campus marketing agreements consist of fixed or
minimum obligations for exclusive marketing and naming
rights with seven campuses. TCF is obligated to make
various annual payments for these rights in the form of
royalties and scholarships through 2029. TCF also has
various renewal options, which may extend the terms of
these agreements. Campus marketing agreements are an
important element of TCF’s campus banking strategy.
See Note 18 of Notes to Consolidated Financial
Statements for information on standby letters of credit
and guarantees on industrial revenue bonds.
Equity Total equity at December 31, 2011 was $1.9 billion,
or 9.90% of total assets, up from $1.5 billion, or 8.02% of
total assets, at December 31, 2010. The increase in total
equity was primarily the result of TCF’s public offering
of common stock in March 2011 and increased retained
earnings. Dividends to common stockholders on a per share
basis totaled 20 cents in both 2011 and 2010. TCF’s dividend
payout ratio was 28.1% and 18.3% in 2011 and 2010,
respectively. The Company’s primary funding sources for
dividends are dividends received from TCF Bank.
At December 31, 2011, TCF had 5.4 million shares
remaining in its stock repurchase program authorized by its
Board of Directors, but would need approval from the Federal
Reserve before repurchasing stock under this authorization.
452011 Form 10-K