Consumer Real Estate TCF makes consumer loans for personal, family or household
purposes, such as home purchases, debt consolidation and financing of home improvements.
TCF's retail lending origination activity primarily consists of consumer real
estate secured lending. It also includes originating loans secured by personal
property and, to a very limited extent, unsecured personal loans. Consumer loans
are made on a fixed-term basis or as a revolving line of credit. Loans are originated
for investment and for sale. TCF has two consumer real estate loan sale programs;
one that sells nationally originated junior lien loans and the other that originates
first mortgage lien loans in our primary banking markets and sells the loans through
a correspondent relationship. TCF does not have any consumer real estate subprime
lending programs. TCF continues to expand its junior lien lending business through
a national lending platform focused on junior lien loans to high credit quality
customers.
Commercial Real Estate and Business Lending With an emphasis on secured lending,
99.9% of TCF's total commercial loans were secured either by properties or other
business assets..
Commercial real estate loans are loans originated by TCF that are secured by
commercial real estate, including multi-family housing, warehouse and industrial
buildings, office buildings, health care facilities, retail services and commercial
real estate construction loans, mainly to borrowers based in its primary banking
markets.
Commercial business loans are loans originated by TCF that are secured by various
types of business assets including inventory, receivables, equipment or financial
instruments. Commercial business loans are used for a variety of purposes, including
working capital and financing the purchase of equipment. TCF continues to develop
its capital funding business that began in 2012 specializing in secured, asset-backed
and cash flow lending to smaller middle-market companies in the U.S. Approximately
55% of TCF's commercial business loans outstanding were to borrowers based in
its primary banking markets.
Leasing and Equipment Finance TCF provides a broad range of comprehensive lease
and equipment finance products addressing the diverse financing needs of small
to large companies in a growing number of select market segments including specialty
vehicles, construction, golf cart and turf, medical, manufacturing, and technology
and data processing. TCF's leasing and equipment finance businesses, TCF Equipment
Finance, a division of TCF Bank, and Winthrop Resources Corporation ("Winthrop"),
finance equipment in all 50 states and, to a limited extent, in foreign countries.
TCF Equipment Finance delivers equipment finance solutions primarily to small
and mid-size companies in various industries with significant diversity in the
types of underlying equipment. Winthrop focuses on providing customized lease
financing to meet the special needs of mid-size and large companies and health
care facilities that procure high-tech essential business equipment such as
computers, servers, telecommunication equipment, medical equipment and other
technology equipment.
Inventory Finance TCF Inventory Finance, Inc. ("TCF Inventory Finance")
originates commercial variable-rate loans which are secured by the underlying
floorplan equipment and supported by repurchase agreements from original equipment
manufacturers. The operation focuses on establishing relationships with distributors,
dealer buying groups and manufacturers, giving TCF access to thousands of independent
retailers primarily in the areas of powersports and lawn and garden. TCF Inventory
Finance operates in all 50 states and Canada and, to a limited extent, in other
foreign countries. TCF Inventory Finance's portfolio balances are impacted by
seasonal shipments and sales activities as dealers receive inventory shipments
in anticipation of the upcoming selling season while carrying current season
product. In 2009, TCF Inventory Finance formed a joint venture with The Toro
Company ("Toro") called Red Iron Acceptance, LLC ("Red Iron").
Red Iron provides U.S. distributors and dealers and select Canadian distributors
of the Toro® and Exmark® brands with reliable, cost-effective sources
of financing. TCF maintains a 55% ownership interest in Red Iron, with Toro
owning the other 45%.
Auto Finance Gateway One Lending & Finance, LLC ("Gateway One"),
headquartered in Anaheim, California, originates and services loans on new and
used autos to customers through relationships established with more than 11,800
franchised and independent dealers in all 50 states. Loans are originated for
investment and for sale, including securitizations. Gateway One's business strategy
is to maintain strong relationships with key personnel at the dealerships. These
relationships are a significant driver in generating volume and executing a
high-touch underwriting approach to minimize credit losses.