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Contractual Obligations and Commercial Commitments As disclosed in the Notes to Consolidated Financial Statements, TCF has certain obligations and commitments to make future payments under contracts. At December 31, 2002, the aggregate contractual obligations (excluding bank deposits) and commercial commitments are as follows: 

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Commitments to lend are agreements to lend a customer pro- vided there is no violation of any condition in the contract. These commitments generally have fixed expiration dates or other termi- nation clauses and may require payment of a fee. Since certain of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Collateral predominantly consists of residential and commercial real estate and personal property. 

Loans serviced with recourse represent a contingent guarantee based upon the failure to perform by another party. These loans con- sist of Veterans Administration (“VA”) loans and loans sold with recourse to the Federal National Mortgage Association (“FNMA”). As is typical of a servicer of VA loans, TCF must cover any principal loss in excess of the VA’s guarantee if the VA elects its “no-bid” option upon the foreclosure of a loan. TCF has established a liability of $100,000 relating to the VA “no-bid” exposure on VA loans ser- viced with partial recourse at December 31, 2002 which was recorded in other liabilities. No claims have been made under the “no-bid” option during 2002 or 2001. Loans sold with recourse to FNMA represent residential real estate loans sold to FNMA prior to 1982. TCF no longer sells loans on a recourse basis, and thus has limited the amount of loans subject to this contingent guarantee. The con- 

tingent guarantee related to both types of recourse remains in effect for the duration of the loans and thus expires in various years through the year 2032. All loans sold with recourse are collateralized by residential real estate. Since conditions under which TCF would be required either to cover any principal loss in excess of the VA’s guar- antee or repurchase the loan sold to FNMA may not materialize, the actual cash requirements are expected to be less than the amount provided in the table above. 

Standby letters of credit are conditional commitments issued by TCF guaranteeing the performance of a customer to a third party. The standby letters of credit expire in various years through the year 2007. Since the conditions under which TCF is required to fund the standby letters of credit may not materialize, the cash require- ments are expected to be less than the total outstanding commitments. Collateral held on standby letters of credit primarily consists of com- mercial real estate mortgages. 

Stockholders’ Equity Stockholders’ equity at December 31, 2002 was $977 million, or 8% of total assets, up from $917 million, or 8.1% of total assets, at December 31, 2001. The increase in stock- holders’ equity was primarily due to net income of $232.9 million for the year ended December 31, 2002, a $39.9 million increase in 

