The following table summarizes TCF’s over 30-day delinquent loan and lease portfolio by loan type: TCF’s over 30-day delinquency on total leasing and equipment finance decreased to 1% at December 31, 2002 from 1.84% at December 31, 2001. At December 31, 2002 there were no delin- quent leases that have been funded on a non-recourse basis by third- party financial institutions, compared with $754,000 at December 31, 2001. The decline in delinquencies in the leasing and equipment finance portfolio during 2002 was primarily in the discontinued truck and trailer marketing segment. Delinquencies in this segment of the leasing and equipment finance portfolio were $4.4 million, or 4.7%, at December 31, 2002, compared with $11 million, or 7.6%, at December 31, 2001.  December 31, 2002, for which management has concerns regarding the ability of the borrowers to meet existing repayment terms. These loans and leases are less than 90 days past due, were classified for reg- ulatory purposes as substandard and reflect the distinct possibility, but not probability, that the Company will not be able to collect all amounts due according to the contractual terms of the loan or lease agreement. Although these loans and leases have been identified as potential problem loans and leases, they may never become non- performing. Additionally, these loans and leases are generally secured by commercial real estate or assets, thus reducing the potential for loss should they become non-performing. Potential problem loans and leases are considered in the determination of the adequacy of the allowance for loan and lease losses.  Potential Problem Loans and Leases In addition to the non- performing assets, there were $83.4 million of loans and leases at Potential problem loans and leases are summarized as follows: N.M. Not meaningful. Liquidity Management TCF manages its liquidity position to ensure that the funding needs of depositors and borrowers are met promptly and in a cost-effective manner. Asset liquidity arises from the ability to convert assets to cash as well as from the maturity of assets. Liability liquidity results from the ability of TCF to attract a diversity of funding sources to promptly meet funding requirements. Deposits are the primary source of TCF’s funds for use in lend- ing and for other general business purposes. In addition to deposits, TCF derives funds primarily from loan and lease payments, proceeds from the discounting of leases and borrowings. Deposit inflows and outflows are significantly influenced by general interest rates, money market conditions, competition for funds, customer service and  other factors. TCF’s deposit inflows and outflows have been and will continue to be affected by these factors. Borrowings may be used to compensate for reductions in normal sources of funds, such as deposit inflows at less than projected levels, net deposit outflows or to sup- port expanded activities. Historically, TCF has borrowed primar- ily from the FHLB, from institutional sources under reverse repurchase agreements and, to a lesser extent, from other sources. At December 31, 2002, TCF had over $2.5 billion in unused capacity under these funding sources, which could be used to meet future liquidity needs. See “Borrowings.” Potential sources of liquidity for TCF Financial Corporation (parent company only) include cash dividends from TCF’s wholly owned bank subsidiary, issuance of equity securities and borrowings under the Company’s $105 million bank line of credit and  page 38 At December 31, 2002 2001 Principal Percentage Principal Percentage (Dollars in thousands) Balances of Portfolio Balances of Portfolio Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,067 .64% $17,939 .72% Commercial real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,835 .37 538 .03 Commercial business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555 .13 526 .13 Leasing and equipment finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,159 1.00 17,393 1.84 Residential real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,708 .54 10,377 .38 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $46,324 .57 $46,773 .57 At December 31, Change (Dollars in thousands) 2002 2001 $ % Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,500 $ 567 $ 3,933 N.M. Commercial real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,132 15,004 15,128 N.M. Commercial business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,408 41,217 (7,809) (18.9)% Leasing and equipment finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,314 15,083 231 1.5 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $83,354 $71,871 $11,483 16.0