TCF Bank 2015 Annual Report Download - page 114

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99
Disclosures About Fair Value of Financial Instruments
Management discloses 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, 2015 and 2014, 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 the Company's financial
instruments, the estimates of fair values are subjective in nature, involve uncertainties and include matters of significant
judgment. Changes in assumptions could significantly affect the estimated values.
The following tables present the carrying amounts and estimated fair values of the Company's financial instruments,
excluding short-term financial assets and liabilities as their carrying amounts approximate fair value and excluding
financial instruments recorded at fair value on a recurring basis. 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 intangible
value of TCF's branches and core deposits, leasing operations, goodwill, premises and equipment 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.
Carrying
Amount
Estimated Fair Value at December 31, 2015
(In thousands) Level 1 Level 2 Level 3 Total
Financial instrument assets:
Investments $ 70,537 $ — $ 70,537 $ — $ 70,537
Securities held to maturity 201,920 — 202,443 4,510 206,953
Loans and leases held for sale 157,625 — — 165,387 165,387
Loans:
Consumer real estate 5,464,272 — — 5,543,273 5,543,273
Commercial real estate 2,593,429 — — 2,556,018 2,556,018
Commercial business 552,403 — — 531,274 531,274
Equipment finance 1,909,672 — — 1,888,664 1,888,664
Inventory finance 2,146,754 — — 2,132,435 2,132,435
Auto finance 2,647,596 — — 2,650,429 2,650,429
Other 19,297 — — 14,699 14,699
Allowance for loan losses(1) (156,054)————
Interest-only strips(2) 44,332 — — 48,817 48,817
Total financial instrument assets $ 15,651,783 $ — $ 272,980 $ 15,535,506 $15,808,486
Financial instrument liabilities:
Deposits $ 16,719,989 $12,816,196 $3,927,434 $ — $ 16,743,630
Long-term borrowings 1,036,652 —1,035,846 5,427 1,041,273
Total financial instrument liabilities $ 17,756,641 $12,816,196 $4,963,280 $5,427 $17,784,903
Financial instruments with off-balance sheet risk:(3)
Commitments to extend credit $ 23,937 $ — $ 23,937 $ — $ 23,937
Standby letters of credit (35) — (35) — (35)
Total financial instruments with off-balance sheet risk $ 23,902 $ — $ 23,902 $ — $ 23,902
(1) Expected credit losses are included in the estimated fair values.
(2) Carrying amounts are included in other assets.
(3) Positive amounts represent assets, negative amounts represent liabilities.