Fair Values Disclosures (Tables)

12 Months Ended

Dec. 31, 2018

Balances of Assets and Liabilities Measured at Fair Value on a Recurring and Non-recurring Basis

The balances of assets and liabilities measured at fair value on a recurring and non-recurring basis were as follows:



	At December 31, 2018
(In thousands)	Level 1		Level 2		Level 3		Total
Recurring fair value measurements through net income:
Assets:
Loans held for sale	$	—	$	—	$	18,070	$	18,070
Interest rate contracts⁽¹⁾	—		7,909		—		7,909
Forward foreign exchange contracts⁽¹⁾	—		3,709		—		3,709
Interest rate lock commitments⁽¹⁾	—		—		652		652
Forward loan sales commitments	—		—		152		152
Assets held in trust for deferred compensation plans	33,217		—		—		33,217
Total assets	$	33,217	$	11,618	$	18,874	$	63,709
Liabilities:
Interest rate contracts⁽¹⁾	$	—	$	3,732	$	—	$	3,732
Forward foreign exchange contracts⁽¹⁾	—		13		—		13
Interest rate lock commitments⁽¹⁾	—		—		28		28
Other contracts⁽¹⁾	—		—		583		583
Forward loan sales commitments	—		—		178		178
Liabilities held in trust for deferred compensation plans	33,217		—		—		33,217
Total liabilities	$	33,217	$	3,745	$	789	$	37,751
Recurring fair value measurements through other comprehensive income:
Assets:
Debt securities available for sale:
Mortgage-backed securities:
U.S. Government sponsored enterprises and federal agencies	$	—	$	1,913,190	$	—	$	1,913,190
Other	—		—		4		4
Obligations of states and political subdivisions	—		556,871		—		556,871
Interest-only strips	—		—		16,835		16,835
Forward foreign exchange contracts⁽¹⁾	—		2,980		—		2,980
Total assets	$	—	$	2,473,041	$	16,839	$	2,489,880
Non-recurring fair value measurements:
Loans	$	—	$	—	$	57,663	$	57,663
Other real estate owned	—		—		9,397		9,397
Repossessed and returned assets	—		4,358		5,165		9,523
Total non-recurring fair value measurements	$	—	$	4,358	$	72,225	$	76,583


(1)	As permitted under GAAP, TCF has elected to net derivative assets and derivative liabilities when a legally enforceable master netting agreement exists as well as the related cash collateral received and paid. For purposes of this table, the derivative assets and derivative liabilities are presented gross of this netting adjustment.



	At December 31, 2017
(In thousands)	Level 1		Level 2		Level 3		Total
Recurring fair value measurements through net income:
Assets:
Loans held for sale	$	—	$	—	$	3,356	$	3,356
Interest rate contracts⁽¹⁾	—		1,797		—		1,797
Interest rate lock commitments⁽¹⁾	—		—		223		223
Forward loan sales commitments	—		—		68		68
Assets held in trust for deferred compensation plans	29,962		—		—		29,962
Total assets	$	29,962	$	1,797	$	3,647	$	35,406
Liabilities:
Interest rate contracts⁽¹⁾	$	—	$	1,688	$	—	$	1,688
Forward foreign exchange contracts⁽¹⁾	—		4,619		—		4,619
Other contracts⁽¹⁾	—		—		615		615
Forward loan sales commitments	—		—		5		5
Liabilities held in trust for deferred compensation plans	29,962		—		—		29,962
Total liabilities	$	29,962	$	6,307	$	620	$	36,889
Recurring fair value measurements through other comprehensive income:
Assets:
Debt securities available for sale:
Mortgage-backed securities:
U.S. Government sponsored enterprises and federal agencies	$	—	$	894,685	$	—	$	894,685
Other	—		—		6		6
Obligations of states and political subdivisions	—		814,327		—		814,327
Interest-only strips	—		—		21,386		21,386
Total assets	$	—	$	1,709,012	$	21,392	$	1,730,404
Liabilities:
Forward foreign exchange contracts⁽¹⁾	$	—	$	1,744	$	—	$	1,744
Total liabilities	$	—	$	1,744	$	—	$	1,744
Non-recurring fair value measurements:
Loans	$	—	$	—	$	72,287	$	72,287
Other real estate owned	—		—		14,036		14,036
Repossessed and returned assets	—		3,669		4,388		8,057
Total non-recurring fair value measurements	$	—	$	3,669	$	90,711	$	94,380


(1)	As permitted under GAAP, TCF has elected to net derivative assets and derivative liabilities when a legally enforceable master netting agreement exists as well as the related cash collateral received and paid. For purposes of this table, the derivative assets and derivative liabilities are presented gross of this netting adjustment.

Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:



(In thousands)	Debt Securities Available for Sale			Loans Held for Sale			Interest-only Strips			Interest Rate Lock Commitments			Other Contracts			Forward Loan Sales Commitments
Asset (liability) balance, December 31, 2015	$	34		$	10,568		$	44,332		$	716		$	(305	)	$	265
Total net gains (losses) included in:
Net income	—			(48		)	2,980			(419		)	(629		)	96
Other comprehensive income (loss)	—			—			159			—			—			—
Sales	—			(343,949		)	—			—			—			—
Originations	—			339,930			22,620			—			—			—
Principal paydowns / settlements	(16		)	(3		)	(29,939		)	—			315			—
Asset (liability) balance, December 31, 2016	18			6,498			40,152			297			(619		)	361
Total net gains (losses) included in:
Net income	—			129			3,939			(74		)	(310		)	(298		)
Other comprehensive income (loss)	—			—			(452		)	—			—			—
Sales	—			(215,381		)	—			—			—			—
Originations	—			212,509			3,377			—			—			—
Principal paydowns / settlements	(12		)	(399		)	(25,630		)	—			314			—
Asset (liability) balance, December 31, 2017	6			3,356			21,386			223			(615		)	63
Total net gains (losses) included in:
Net income	—			454			2,616			401			(274		)	(89		)
Other comprehensive income (loss)	—			—			1,195			—			—			—
Sales	—			(332,288		)	—			—			—			—
Originations	—			346,560			4,797			—			—			—
Principal paydowns / settlements	(2		)	(12		)	(13,159		)	—			306			—
Asset (liability) balance, December 31, 2018	$	4		$	18,070		$	16,835		$	624		$	(583	)	$	(26	)

Schedule of Differences Between the Aggregate Fair Value and Aggregate Unpaid Principal Balance on Loans Held for Sale

The difference between the aggregate fair value and aggregate unpaid principal balance of these loans held for sale was as follows:



	At December 31,
(In thousands)	2018		2017
Fair value carrying amount	$	18,070	$	3,356
Aggregate unpaid principal amount	17,517		3,268
Fair value carrying amount less aggregate unpaid principal	$	553	$	88

Fair Value of Assets and Liabilities, Including Hierarchy Level

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, were as follows. 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.



	At December 31, 2018
	Carrying			Estimated Fair Value
(In thousands)	Amount			Level 1		Level 2			Level 3		Total
Financial instrument assets:
Investments	$	91,654		$	—	$	91,654		$	—	$	91,654
Debt securities held to maturity	148,852			—		146,467			2,800		149,267
Loans held for sale	72,594			—		—			74,078		74,078
Loans:
Consumer real estate	5,410,340			—		—			5,461,209		5,461,209
Commercial real estate	2,908,147			—		—			2,872,829		2,872,829
Commercial business	943,156			—		—			890,828		890,828
Equipment finance	2,169,577			—		—			2,131,147		2,131,147
Inventory finance	3,107,356			—		—			3,091,593		3,091,593
Auto finance	1,982,277			—		—			1,935,017		1,935,017
Other	21,295			—		—			16,928		16,928
Allowance for loan losses⁽¹⁾	(157,446		)	—		—			—		—
Securitization receivable⁽²⁾	19,432			—		—			19,025		19,025
Total financial instrument assets	$	16,717,234		$	—	$	238,121		$	16,495,454	$	16,733,575
Financial instrument liabilities:
Deposits	$	18,903,686		$	14,113,006	$	4,820,442		$	—	$	18,933,448
Long-term borrowings	1,449,472			—		1,451,550			—		1,451,550
Total financial instrument liabilities	$	20,353,158		$	14,113,006	$	6,271,992		$	—	$	20,384,998
Financial instruments with off-balance sheet risk:⁽³⁾
Commitments to extend credit	$	18,555		$	—	$	18,555		$	—	$	18,555
Standby letters of credit	(77		)	—		(77		)	—		(77		)
Total financial instruments with off-balance sheet risk	$	18,478		$	—	$	18,478		$	—	$	18,478


(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.



	At December 31, 2017
	Carrying			Estimated Fair Value
(In thousands)	Amount			Level 1		Level 2			Level 3		Total
Financial instrument assets:
Investments	$	82,644		$	—	$	82,644		$	—	$	82,644
Debt securities held to maturity	161,576			—		162,826			2,800		165,626
Loans held for sale	134,752			—		—			139,458		139,458
Loans:
Consumer real estate	4,819,696			—		—			4,916,475		4,916,475
Commercial real estate	2,751,285			—		—			2,710,237		2,710,237
Commercial business	809,908			—		—			776,989		776,989
Equipment finance	2,300,479			—		—			2,260,692		2,260,692
Inventory finance	2,739,754			—		—			2,723,045		2,723,045
Auto finance	3,199,639			—		—			3,197,794		3,197,794
Other	22,517			—		—			21,129		21,129
Allowance for loan losses⁽¹⁾	(171,041		)	—		—			—		—
Securitization receivable⁽²⁾	19,179			—		—			18,595		18,595
Total financial instrument assets	$	16,870,388		$	—	$	245,470		$	16,767,214	$	17,012,684
Financial instrument liabilities:
Deposits	$	18,335,002		$	13,352,731	$	5,023,526		$	—	$	18,376,257
Long-term borrowings	1,249,449			—		1,255,333			—		1,255,333
Total financial instrument liabilities	$	19,584,451		$	13,352,731	$	6,278,859		$	—	$	19,631,590
Financial instruments with off-balance sheet risk:⁽³⁾
Commitments to extend credit	$	19,423		$	—	$	19,423		$	—	$	19,423
Standby letters of credit	(83		)	—		(83		)	—		(83		)
Total financial instruments with off-balance sheet risk	$	19,340		$	—	$	19,340		$	—	$	19,340


(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.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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