TCF Bank 2015 Annual Report Download - page 56

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41
The Company considers the allowance for loan and lease losses of $156.1 million appropriate to cover losses incurred
in the loan and lease portfolios at December 31, 2015. However, no assurance can be given that TCF will not, in any
particular period, sustain loan and lease losses that are sizable in relation to the amount reserved or will not require
significant changes in the balance of the allowance for loan and lease losses due to subsequent evaluations of the
loan and lease portfolios, in light of factors then prevailing, including economic conditions, information obtained during
TCF's ongoing credit review process or regulatory requirements. Among other factors, an economic slowdown,
increasing levels of unemployment and/or a decline in collateral values may have an adverse impact on the current
adequacy of the allowance for loan and lease losses by increasing credit risk and the risk of potential loss.
The total allowance for loan and lease losses is generally available to absorb losses from any segment of the portfolio.
The allocation of TCF's allowance for loan and lease losses disclosed in the following table is subject to change based
on changes in the criteria used to evaluate the allowance and is not necessarily indicative of the trend of future losses
in any particular portfolio.
In conjunction with Note 6, Allowance for Loan and Lease Losses and Credit Quality Information of Notes to Consolidated
Financial Statements, the following table includes detailed information regarding TCF's allowance for loan and lease
losses.
Credit Loss Reserves Credit Loss Reserves as a Percentage of
Portfolio
At December 31, At December 31,
(Dollars in thousands) 2015 2014 2013 2012 2011 2015 2014 2013 2012 2011
Consumer real estate:
First mortgage lien $ 36,888 $ 55,319 $133,009 $119,957 $115,740 1.41%1.76%3.53%2.83%2.44%
Junior lien 31,104 30,042 43,021 62,056 67,695 1.10 1.18 1.67 2.55 3.14
Consumer real estate 67,992 85,361 176,030 182,013 183,435 1.24 1.50 2.78 2.73 2.66
Commercial:
Commercial real estate 22,215 24,616 32,405 47,821 40,446 0.86 0.94 1.18 1.55 1.26
Commercial business 7,970 6,751 5,062 3,754 6,508 1.44 1.27 1.25 1.16 2.59
Total commercial 30,185 31,367 37,467 51,575 46,954 0.96 0.99 1.19 1.51 1.36
Leasing and equipment
finance 19,018 18,446 18,733 21,037 21,173 0.47 0.49 0.55 0.66 0.67
Inventory finance 11,128 10,020 8,592 7,569 2,996 0.52 0.53 0.52 0.48 0.48
Auto finance 26,486 18,230 10,623 4,136 —1.00 0.95 0.86 0.75 —
Other 1,245 745 785 798 1,114 6.45 3.09 2.94 2.86 3.19
Total allowance for loan
and lease losses 156,054 164,169 252,230 267,128 255,672 0.90 1.00 1.59 1.73 1.81
Other credit loss reserves:
Reserves for unfunded
commitments 1,044 943 980 2,456 1,829 N.A. N.A. N.A. N.A. N.A.
Total credit loss
reserves $157,098 $165,112 $253,210 $269,584 $257,501 0.90 1.01 1.60 1.75 1.82
N.A. Not Applicable.
At December 31, 2015, the allowance as a percent of total loans and leases decreased to 0.90%, compared with
1.00% at December 31, 2014. The decrease was driven primarily by reduced reserves in the consumer real estate
portfolio resulting from improved home values.