TCF Bank 2012 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2012 TCF Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

TCF Bank is required to hold Federal Reserve Bank stock
equal to 6% of TCF Bank’s capital surplus, which is additional
paid in capital stock, less any deficit retained earnings, gains
(losses) on available for sale securities, and foreign currency
translation adjustments as of the current period end. Other
investments primarily consist of non-trading mortgage-
backed securities and other bonds which qualify for
investment credit under the Community Reinvestment Act.
During 2012, TCF recorded an impairment charge of
$865 thousand on other investments, which had a carrying
value of $5.7 million at December 31, 2012, as full recovery
is not expected. During 2011, TCF recorded an impairment
charge of $16 thousand on other investments, which had a
carrying value of $7 million at December 31, 2011.
During the second quarter of 2012, TCF sold its Visa
Class B stock, resulting in a net $13.1 million pretax gain
recorded in non-interest income within the Consolidated
Statement of Income. In conjunction with the sale, TCF
and the purchaser entered into a derivative transaction
whereby TCF will make, or receive, cash payments whenever
the conversion ratio of Visa Class B stock into Visa Class A
stock is adjusted.
The carrying values and yields on investments at
December 31, 2012, by contractual maturity, are shown below.
(Dollars in thousands)
Carrying
Value Yield
Due in one year or less $ 100 1.00%
Due in 1-5 years 1,600 3.31
Due in 5-10 years 1,000 3.00
Due after 10 years 2,957 5.55
No stated maturity 115,210 3.73
Total $120,867 3.76%
Note 5. Securities Available for Sale
Securities available for sale consist of the following.
At December 31,
2012 2011
(Dollars in thousands)
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Mortgage-backed securities
U.S. Government sponsored
enterprises and federal
agencies $691,570 $21,693 $3,209 $710,054 $2,233,307 $89,029 $ – $2,322,336
Other 127 – – 127 152 – – 152
Other securities 1,642 268 – 1,910 1,742 – 192 1,550
Total $693,339 $21,961 $3,209 $712,091 $2,235,201 $89,029 $192 $2,324,038
Weighted-average yield 2.70% 3.79%
Gross realized gains of $90.2 million, $8 million and $31.5 million were recognized on sales of securities available for sale
during 2012, 2011 and 2010, respectively. Mortgage-backed securities of $19.8 million were pledged as collateral to secure
certain deposits and borrowings at December 31, 2012. Mortgage-backed securities of $1.8 billion were pledged as collateral
to secure certain deposits and borrowings at December 31, 2011. During 2012 and 2011, TCF recorded an impairment charge of
$225 thousand and $768 thousand, respectively, on other securities as full recovery is not expected.
{ 2012 Form 10K } { 69 }