TCF Bank 2015 Annual Report Download - page 81

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66
Note 3. Investments
Investments consisted of the following.
At December 31,
(In thousands) 2015 2014
Federal Home Loan Bank stock, at cost $ 32,909 $47,914
Federal Reserve Bank stock, at cost 37,628 37,578
Total investments $ 70,537 $85,492
The investments in Federal Home Loan Bank stock are required investments related to TCF's membership in and
current borrowings from the Federal Home Loan Bank ("FHLB") of Des Moines. TCF's investments in FHLB of Des
Moines could be adversely impacted by the financial operations of the Federal Home Loan Banks and actions of their
regulator, the Federal Housing Finance Agency. The amount of Federal Reserve Bank stock that TCF Bank is required
to hold is based on TCF Bank's capital structure.
The yield on investments which have no stated contractual maturity was 4.41% and 4.25% at December 31, 2015 and
2014, respectively.
Note 4. Securities Available for Sale and Securities Held to Maturity
Securities consisted of the following.
At December 31,
2015 2014
(In thousands) Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair
Value Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair
Value
Securities available for sale:
Mortgage-backed securities:
U.S. Government sponsored
enterprises and federal
agencies $ 627,521 $ 655 $ 6,246 $ 621,930 $ 461,575 $ 2,405 $741 $463,239
Other 34 — — 34 55 — — 55
Obligations of states and
political subdivisions 262,189 4,732 — 266,921 — — — —
Total securities available for
sale $ 889,744 $ 5,387 $6,246 $ 888,885 $ 461,630 $ 2,405 $741 $463,294
Securities held to maturity:
Mortgage-backed securities:
U.S. Government sponsored
enterprises and federal
agencies $ 197,410 $ 5,247 $214 $ 202,443 $ 209,538 $ 7,988 $109 $217,417
Other 1,110 — — 1,110 1,516 — — 1,516
Other securities 3,400 — — 3,400 3,400 — — 3,400
Total securities held to maturity $ 201,920 $ 5,247 $214 $ 206,953 $ 214,454 $ 7,988 $109 $222,333
During 2015, TCF sold $0.2 million of securities available for sale and received cash proceeds of $0.2 million. Gross
realized gains of $1.2 million were recognized on sales of securities available for sale in both 2014 and 2013. At
December 31, 2015 and 2014, mortgage-backed securities with a carrying value of $17.1 million and $8.2 million,
respectively, were pledged as collateral to secure certain deposits and borrowings. There were no impairment charges
recognized on securities available for sale in 2015, 2014, or 2013. Unrealized losses on securities available for sale
are due to changes in interest rates. TCF has the ability and intent to hold these investments until a recovery of fair
value occurs.