TCF Bank 2014 Annual Report Download - page 55

Contractual Obligations and Commitments As disclosed in Note 10, Note 11 and Note 17 of Notes to Consolidated Financial
Statements, Short-term Borrowings, Long-term Borrowings and Financial Instruments with Off-Balance Sheet Risk,
respectively, TCF has certain obligations and commitments to make future payments under contracts. At December 31, 2014,
the aggregate contractual obligations and commitments were as follows.
Payments Due by Period
Less than 1-3 3-5 More than
(In thousands) Total 1 year years years 5 years
Contractual Obligations:
Total borrowings $1,236,490 $ 164,999 $ 950,433 $ 11,621 $ 109,437
Time deposits 3,049,189 1,829,969 1,133,486 58,870 26,864
Annual rental commitments under non-cancelable
operating leases 193,271 26,894 57,793 41,554 67,030
Contractual interest payments(1) 101,329 38,116 29,036 16,425 17,752
Campus marketing agreements 36,240 3,217 5,730 5,804 21,489
Total $4,616,519 $2,063,195 $2,176,478 $134,274 $ 242,572
(1) Includes accrued interest and future contractual interest obligations on borrowings and time deposits.
Amount of Commitment – Expiration by Period
Less than 1-3 3-5 More than
(In thousands) Total 1 year years years 5 years
Commitments:
Commitments to extend credit:
Consumer real estate and other $1,314,826 $ 28,444 $ 99,785 $138,279 $1,048,318
Commercial 609,618 159,184 124,701 229,347 96,386
Leasing and equipment finance 140,261 140,261 – – –
Total commitments to extend credit 2,064,705 327,889 224,486 367,626 1,144,704
Standby letters of credit and guarantees on
industrial revenue bonds 14,676 12,788 1,458 430 –
Total $2,079,381 $ 340,677 $ 225,944 $368,056 $1,144,704
Unrecognized tax benefits, projected benefit obligations, demand deposits with indeterminate maturities and discretionary credit
facilities which do not obligate the Company to lend have been excluded from the contractual obligations table above.
Campus marketing agreements consist of fixed or minimum obligations for exclusive marketing and naming rights with four
campuses. TCF is obligated to make annual payments for the exclusive marketing rights at these four campuses through 2029.
TCF also has various renewal options, which may extend the terms of these agreements.
Commitments to extend credit 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. Collateral to secure any funding of these commitments predominantly consists
of residential and commercial real estate.
Standby letters of credit and guarantees on industrial revenue bonds are conditional commitments issued by TCF guaranteeing
the performance of a customer to a third party. These conditional commitments expire in various years through 2018. Collateral
held consists primarily of commercial real estate mortgages. Since the conditions under which TCF is required to fund these
commitments may not materialize, the cash requirements are expected to be less than the total outstanding commitments.
Capital Management TCF is committed to managing capital to maintain protection for depositors and creditors. TCF employs
a variety of capital management tools to achieve its capital goals, including, but not limited to, dividends, public offerings of
preferred and common stock, common stock repurchases and the issuance or redemption of subordinated debt and other capital
instruments. TCF maintains a Capital Planning and Dividend Policy which applies to TCF Financial and incorporates TCF Bank’s
Capital Planning and Dividend Policy. These policies ensure that capital strategy actions, including the addition of new capital, if
needed, and/or the declaration of preferred stock, common stock or bank dividends are prudent, efficient and provide value to
TCF’s stockholders, while ensuring that past and prospective earnings retention is consistent with TCF’s capital needs, asset
quality and overall financial condition. TCF’s capital levels are managed in such a manner that all regulatory capital requirements
for well-capitalized banks and bank holding companies are exceeded. At December 31, 2014 and 2013, regulatory capital for TCF
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