TCF Bank 2014 Annual Report Download - page 90

A reconciliation of the changes in unrecognized tax benefits is as follows.
At or For the Year Ended December 31,
(In thousands) 2014 2013 2012
Balance, beginning of period $4,704 $4,230 $2,377
Increases for tax positions related to the current year 468 394 449
Increases for tax positions related to prior years 8362 1,781
Decreases for tax positions related to prior years (350) (67) –
Settlements with taxing authorities –(39) (70)
Decreases related to lapses of applicable statutes of limitation (181) (176) (307)
Balance, end of period $4,649 $4,704 $4,230
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $1.5 million and
$1.2 million at December 31, 2014 and 2013, respectively. TCF recognizes interest and penalties related to unrecognized tax
benefits, where applicable, in income tax expense. TCF recognized approximately $71 thousand, $110 thousand and
$77 thousand in interest and penalties during 2014, 2013 and 2012, respectively. Interest and penalties of approximately
$498 thousand and $427 thousand were accrued at December 31, 2014 and 2013, respectively.
TCF’s federal income tax returns are open and subject to examination for 2012 and later tax return years. TCF’s various state
income tax returns are generally open for the 2010 and later tax return years based on individual state statutes of limitation. TCF’s
various foreign income tax returns are open and subject to examination for 2010 and later tax return years. Changes in the
amount of unrecognized tax benefits within the next twelve months from normal expirations of statutes of limitation are not
expected to be material.
The significant components of the Company’s deferred tax assets and deferred tax liabilities were as follows.
At December 31,
(In thousands) 2014 2013
Deferred tax assets:
Allowance for loan and lease losses $ 63,862 $ 62,464
Stock compensation and deferred compensation plans 34,850 29,576
Net operating losses and credit carryforwards 11,649 48,692
Valuation allowance (5,669) (8,745)
Non-accrual interest 9,333 1,911
Securities available for sale 5,397 16,301
Accrued expense 4,892 5,203
Other 2,721 6,676
Total deferred tax assets 127,035 162,078
Deferred tax liabilities:
Lease financing 299,621 284,767
Premises and equipment 19,114 19,289
Loan fees and discounts 14,921 17,287
Prepaid expenses 12,479 10,526
Goodwill and other intangibles 4,139 4,694
Other 8,106 7,361
Total deferred tax liabilities 358,380 343,924
Net deferred tax liabilities $231,345 $181,846
The net operating losses and credit carryforwards at December 31, 2014 consist of state net operating losses of $6.0 million that
expire in years 2015 through 2034. The valuation allowance at December 31, 2014 and 2013 principally applies to net operating
losses and tax credit carryforwards that, in the opinion of management, are more likely than not to expire un-utilized. However, to
the extent that tax benefits related to these carryforwards are realized in the future, the reduction in the valuation allowance will
reduce income tax expense.
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