TCF Bank 2015 Annual Report Download - page 88

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73
The following table provides information regarding consumer real estate loans to customers currently involved in
ongoing Chapter 7 or Chapter 13 bankruptcy proceedings which have not yet been discharged or completed.
At December 31,
(In thousands) 2015 2014
Consumer real estate loans to customers in bankruptcy:
0-59 days delinquent and accruing $ 26,020 $ 47,731
60+ days delinquent and accruing — 247
Non-accrual 20,264 12,284
Total consumer real estate loans to customers in bankruptcy $ 46,284 $ 60,262
For the years ended December 31, 2015 and 2014, interest income would have been reduced by approximately
$0.2 million and $0.4 million, respectively, had the accrual of interest income on the above consumer loans been
discontinued upon notification of bankruptcy.
Loan Modifications for Borrowers with Financial Difficulties Included within loans and leases in the previous
tables are certain loans that have been modified in order to maximize collection of loan balances. If, for economic or
legal reasons related to the customer's financial difficulties, TCF grants a concession, the modified loan is classified
as a TDR loan. TDR loans consist primarily of consumer real estate and commercial loans.
Total TDR loans at December 31, 2015 and 2014 were $230.6 million and $298.5 million, respectively, of which
$135.3 million and $193.8 million, respectively, were accruing. TCF held consumer real estate TDR loans of
$185.8 million and $199.6 million at December 31, 2015 and 2014, respectively, of which $106.8 million and
$111.9 million, respectively, were accruing. TCF also held $31.7 million and $91.6 million of commercial TDR loans at
December 31, 2015 and 2014, respectively, of which $24.7 million and $80.4 million, respectively, were accruing. TDR
loans for the remaining classes of finance receivables were not material at December 31, 2015 or 2014.
Unfunded commitments to commercial and consumer real estate loans classified as TDRs were $0.4 million and $3.9
million at December 31, 2015 and 2014, respectively. At December 31, 2015 and 2014, no additional funds were
committed to leasing and equipment finance, inventory finance or auto finance loans classified as TDRs.
When a loan is modified as a TDR, principal balances are generally not forgiven. Loan modifications to troubled
borrowers are not reported as TDR loans in the calendar years after modification if the loans were modified to an
interest rate equal to or greater than the yields of new loan originations with comparable risk at the time of restructuring
and if the loan is performing based on the restructured terms. All loans classified as TDR loans are considered to be
impaired. In 2015 and 2014, $14.0 million and $12.8 million, respectively, of commercial loans were removed from
TDR status as they were restructured at market terms and were performing.
Foregone interest represents the difference between interest income recognized on accruing TDR loans and the
contractual interest that would have been recorded under the original contractual terms. In 2015, foregone interest
income for consumer real estate first mortgage lien accruing TDR loans and consumer real estate junior lien accruing
TDR loans was $2.2 million and $0.8 million, respectively. The average yield for the same period on consumer real
estate accruing TDR loans was 4.1%, which compares to the original contractual average rate of 6.7%. In 2014,
foregone interest income for consumer real estate first mortgage lien accruing TDR loans and consumer real estate
junior lien accruing TDR loans was $16.7 million and $1.2 million, respectively. The average yield for the same period
on consumer real estate accruing TDR loans was 3.3%, which compares to the original contractual average rate of
6.8%. In 2013, foregone interest income for consumer real estate first mortgage lien accruing TDR loans and consumer
real estate junior lien accruing TDR loans was $17.6 million and $1.2 million, respectively. The average yield for the
same period on consumer real estate accruing TDR loans was 3.3%, which compares to the original contractual
average rate of 6.9%.The foregone interest income for the remaining classes of finance receivables was not material
for 2015, 2014 and 2013.