Business Wire | Oct 26, 2020 04:13PM EDT

TCF Reports Third Quarter 2020 Results

Oct. 26, 2020

DETROIT--(BUSINESS WIRE)--Oct. 26, 2020--TCF Financial Corporation (NASDAQ: TCF):

Third Quarter 2020 Highlights

* Quarterly net income of $55.7 million, or $0.35 per diluted share, up 134.5% from the second quarter of 2020 * Adjusted diluted earnings per common share of $0.63(1), up 16.7% from the second quarter of 2020. Adjusted diluted earnings per common share excludes $43.0 million, or $0.28 per share, after-tax impact of merger-related expenses and notable items * Successful on-time completion of merger-of-equals integration activities * Loan and lease balances on deferral status down to $403.6 million as of September 30, 2020 ($289.5 million of commercial balances and $114.1 million of consumer balances) * Loan and lease balances declined 3.4% from June 30, 2020, primarily due to declines in the commercial and industrial and consumer portfolios * Net charge-offs of $24.6 million, or 0.28% of average loans and leases (annualized) * Provision for credit losses of $69.7 million, down 11.5% from the second quarter of 2020 * Allowance for credit losses, which includes the reserve for unfunded lending commitments, of 1.60% of total loans and leases, up from 1.42% at June 30, 2020 * Efficiency ratio of 75.29%, improved 297 basis points from the second quarter of 2020. Adjusted efficiency ratio of 61.17%(1), up 137 basis points from the second quarter of 2020 * Common equity Tier 1 capital ratio of 11.45%, compared to 11.06% at June 30, 2020 * Declared quarterly cash dividends on common stock of $0.35 per share payable on December 1, 2020

Merger-related Expenses and Notable items in the Third Quarter of 2020 and Second Quarter of 2020(

* Pre-tax merger-related expenses of $54.0 million, $42.8 million net of tax, or $0.28 per diluted common share for the third quarter of 2020, compared to pre-tax merger-related expenses of $81.6 million, $64.6 million net of tax, or $0.42 per diluted common share for the second quarter of 2020 * Pre-tax expenses, of $154 thousand, $122 thousand net of tax, or $0.00 per diluted common share related to notable items for the third quarter of 2020, compared to pre-tax income, net expenses of $4.4 million, $3.5 million net of tax, or $0.02 per diluted common share related to notable items for the second quarter of 2020, see summary of notable items adjustments below

Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to(1) Non-GAAP Financial Measures" tables and the following table detailing merger-related expenses and notable items.

Note: For the third quarter 2019, TCF's reported financial results reflect Legacy TCF financial results for the period before August 1, 2019 and the post-merger combined TCF financial results on and after August 1, 2019. The number of shares issued and outstanding, earnings per share, additional paid-in-capital, dividends paid and all references to share quantities of TCF have been retrospectively restated to reflect the equivalent number of shares issued in the Merger as the Merger was treated as a reverse merger.

Summary of Financial Results^(1)

At or For the Quarter Ended Change From

Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Sep. 30,

(Dollars inthousands, 2020 2020 2020 2019 2019 2020 2019except pershare data)

Financial Results

Net incomeattributable $ 55,738 $ 23,764 $ 51,899 $112,399 $ 22,148 134.5 % 151.7 %to TCF

Net interest 377,167 378,359 401,481 408,753 371,793 (0.3 ) 1.4 income

Basicearnings per $ 0.35 $ 0.14 $ 0.33 $ 0.72 $ 0.15 150.0 133.3 common share

Dilutedearnings per 0.35 0.14 0.32 0.72 0.15 150.0 133.3 common share

Return onaverage 0.46 % 0.21 % 0.46 % 0.99 % 0.26 % 25 bps 20 bpsassets("ROAA")^(2)

ROACE^(2) 3.87 1.56 3.64 8.00 1.75 231 212

ROATCE(non-GAAP)^ 5.71 2.57 5.42 11.35 2.68 314 303 (2)(3)

Net interest 3.31 3.33 3.73 3.86 4.12 (2 ) (81 ) margin

Net interestmargin (FTE)^ 3.34 3.35 3.76 3.89 4.14 (1 ) (80 ) (2)(3)

Netcharge-offsas apercentage of 0.28 0.04 0.06 0.07 0.39 24 (11 ) average loansand leases^(2)

Nonperformingassets as apercentage oftotal loans 1.20 0.94 0.80 0.59 0.62 26 58 and leasesand otherreal estateowned^(4)

Efficiency 75.29 78.26 69.57 73.49 91.32 (297 ) (1,603 ) ratio

AdjustedFinancial Results(non-GAAP)

Adjusted netincome $ 98,696 $ 84,862 $ 89,855 $161,581 $128,301 16.3 % (23.1 ) %attributableto TCF^(2)

Adjusteddilutedearnings per $ 0.63 $ 0.54 $ 0.57 $ 1.04 $ 0.98 16.7 (35.7 ) common

share^(3)

Adjusted ROAA 0.81 % 0.70 % 0.78 % 1.42 % 1.34 % 11 bps (53 ) bps^(2)(3)

Adjusted 6.99 6.03 6.43 11.57 11.21 96 (422 ) ROACE^(2)(3)

Adjusted 9.96 8.70 9.24 16.25 14.96 126 (500 ) ROATCE^(2)(3)

Adjustedefficiency 61.17 59.80 58.24 58.51 58.74 137 243 ratio^(3)

(1)

For the third quarter 2019, TCF's reported financial results reflect Legacy TCF financial results for the period before August 1, 2019 and the post-merger combined TCF financial results on and after August 1, 2019.

(2)

Annualized.

(3)

Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.

(4)

Prior to the adoption of CECL as of January 1, 2020, purchased credit impaired loans were not classified as nonaccrual loans because they were recorded at their net realizable value based on the principal and interest expected to be collected on the loans. At January 1, 2020, $73.4 million of previous purchased credit impaired loans were reclassified to nonaccrual loans as a result of the adoption of CECL.

The following table includes merger-related expenses and notable items used to arrive at adjusted net income in the Adjusted Financial Results (non-GAAP) (see "Reconciliation of Non-GAAP Financial Measures" tables).

For the third quarter 2019, TCF's reported financial results reflect(1) Legacy TCF financial results for the period before August 1, 2019 and the post-merger combined TCF financial results on and after August 1, 2019.

(2) Annualized.

(3) Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.

Prior to the adoption of CECL as of January 1, 2020, purchased credit impaired loans were not classified as nonaccrual loans because they were(4) recorded at their net realizable value based on the principal and interest expected to be collected on the loans. At January 1, 2020, $73.4 million of previous purchased credit impaired loans were reclassified to nonaccrual loans as a result of the adoption of CECL.

The following table includes merger-related expenses and notable items used to arrive at adjusted net income in the Adjusted Financial Results (non-GAAP) (see "Reconciliation of Non-GAAP Financial Measures" tables).

For the Quarter Ended September 30, For the Quarter Ended June 30, 2020 2020

(Dollars in Pre-tax After-tax Pre-tax After-taxthousands, income benefit Per Share income benefit Per Shareexcept per (loss) (loss)^(1) (loss) (loss)^(1)share data)

Merger-related $ (54,011 ) $ (42,836 ) $ (0.28 ) $ (81,619 ) (64,585 ) $ (0.42 )expenses

Notable items:

Expensesrelated to thesale of Legacy - - - (901 ) (713 ) - TCF autofinanceportfolio^(2)

Branch salesand exit - - - 14,166 11,210 0.07 costs, net^(3)

Loan servicingrights (154 ) (122 ) - (8,858 ) (7,009 ) (0.05 )impairment^(4)

Total notable (154 ) (122 ) - 4,407 3,488 0.02 items

Totalmerger-related $ (54,165 ) $ (42,958 ) $ (0.28 ) $ (77,212 ) $ (61,097 ) $ (0.40 )and notableitems

(1)

Net of tax benefit at our normal tax rate and other tax benefits.

(2)

Second quarter of 2020 included within other noninterest expense ($0.8 million) and compensation and employee benefits ($0.1 million).

(3)

Second quarter of 2020 included within other noninterest income ($14.7 million net gain) and other noninterest expense ($0.6 million).

(4)

Included within other noninterest income.

TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ: TCF) today reported net income of $55.7 million, or diluted earnings per common share of $0.35, for the third quarter of 2020, compared with $23.8 million, or diluted earnings per common share of $0.14, for the second quarter of 2020. Adjusted net income was $98.7 million, or $0.63 per diluted common share for the third quarter of 2020, compared with $84.9 million, or $0.54 per diluted common share, for the second quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

"The highlight of the third quarter was the successful completion of integration activities related to our merger of equals, with our business now aligned under a single brand and going to market as One TCF across the broader footprint," said Craig R. Dahl, president and chief executive officer. "We were able to complete these efforts on time, despite the challenges related to COVID-19 and our work-from-home approach. This success was driven by the hard work and dedication of our team members across the bank who continued to focus on serving our customers. As a result, we remain on track to achieve our expense target for the fourth quarter. Now fully integrated, we can bring the full breadth and depth of our services - and our team members' expertise - to enhance our ability to support our customers and communities.

"Financial results for the third quarter included a stable net interest margin, significant declines in loan deferrals, and continued strong capital ratios and liquidity. While loan demand remained at relatively low levels due to economic uncertainty, we have begun to see trends gradually improve over the past couple of months as commercial loan pipelines have been building, including in CRE and certain C&I sectors such as manufacturing. In addition, we are continuing to monitor credit quality trends as we further isolate the portions of certain portfolios that are more heavily impacted by COVID.

"As we look ahead, we expect to benefit from the outcomes of our merger-of-equals, including our expanded product set that is allowing us to better meet the needs of our commercial and consumer customers. This has also resulted in various merger-related revenue synergy initiatives that are still in front of us and provide opportunities to drive incremental organic growth."

Net Interest Income and Net Interest Margin

Net interest income was $377.2 million for the third quarter of 2020, a decrease of $1.2 million, or 0.3%, from the second quarter of 2020. Purchase accounting accretion and amortization included in net interest income was $17.7 million for the third quarter of 2020, compared to $18.2 million for the second quarter of 2020. Additionally, third quarter of 2020 net interest income recorded included $14.7 million of interest and fee income from PPP less funding costs, compared to $9.6 million for the second quarter of 2020. Adjusted net interest income, excluding purchase accounting accretion and amortization and the impact from PPP loans, a non-GAAP financial measure, was $344.7 million for the third quarter of 2020, compared to $350.6 million for the second quarter of 2020. Net interest margin was 3.31% for the third quarter of 2020, compared to 3.33% in the second quarter of 2020, while net interest margin on a fully tax-equivalent basis (FTE), a non-GAAP financial measure, was 3.34%, down one basis point from the second quarter of 2020. The decrease in net interest margin from the second quarter of 2020 was driven by higher average cash balances and lower yields on loans, leases and securities, partially offset by lower cost of funds. Adjusted net interest margin FTE, excluding purchase accounting accretion and amortization and the impact of PPP loans, a non-GAAP financial measure, was 3.19% for the third quarter of 2020, down one basis point from the second quarter of 2020. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables for reconciliations of our noted non-GAAP measures.

Noninterest Income

Noninterest income was $118.8 million for the third quarter of 2020, a decrease of $14.2 million, or 10.7%, from the second quarter of 2020. Noninterest income for the third quarter of 2020 included a notable item of an $154 thousand loan servicing rights impairment, included in other noninterest income. Noninterest income for the second quarter of 2020 included notable items of a $14.7 million gain on the sale of our Arizona branches and an $8.9 million loan servicing rights impairment, both included in other noninterest income. Adjusted noninterest income, a non-GAAP financial measure, for the third quarter of 2020 was $119.0 million, compared to $127.2 million in the second quarter of 2020. The third quarter of 2020 noninterest income, compared to the second quarter of 2020, also included decreases of $5.5 million in net gains on sales of loans and leases, $5.3 million in leasing revenue due to a decrease in sales-type lease revenue through our equipment financing activity, and $2.7 million in servicing fee revenue due to accelerated loan servicing rights amortization related to faster prepayment speeds, partially offset by increases of $2.7 million in card and ATM revenue, $2.6 million in fees and service charges on deposit accounts, and $2.3 million in net gains on investment securities. The third quarter of 2020 also included a $2.6 million unfavorable interest rate swap mark-to-market adjustment resulting from changes in the interest rate environment, included in other noninterest income, compared to an unfavorable interest rate swap mark-to-market adjustment of $428 thousand in the second quarter of 2020.

Noninterest Expense

Noninterest expense was $373.4 million for the third quarter of 2020, a decrease of $26.8 million, or 6.7%, from the second quarter of 2020. The decrease in the third quarter of 2020 reflected decreases in merger-related expenses, occupancy and equipment expense and compensation and benefits expense, partially offset by an increase in other noninterest expense. The third quarter of 2020 included $54.0 million of merger-related expenses, compared to $81.6 million for the second quarter of 2020. Noninterest expense for the second quarter of 2020 also included $0.9 million of expense related to the sale of the Legacy TCF auto finance portfolio ($0.8 million in other noninterest expense and $0.1 million in compensation and employee benefits) and $0.6 million of expense related to branch exit costs, included in other noninterest expense considered notable items. Excluding merger-related expenses and notable items, adjusted noninterest expense, a non-GAAP financial measure, was $319.4 million for the third quarter of 2020, compared to $317.2 million for the second quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The third quarter of 2020 also included $1.8 million of federal historic tax credit amortization, included in other noninterest expense, compared to $0.2 million in the second quarter of 2020.

Income Tax Expense

Income tax benefit for the third quarter of 2020 was $4.4 million, compared to income tax expense of $6.2 million, an effective tax rate of 19.1% for the second quarter of 2020. Income tax for the third quarter of 2020 included a benefit of $16.0 million attributable to tax net operating loss carryback benefits associated with the CARES Act. Excluding the benefit provided by the CARES Act, our effective tax rate for the third quarter of 2020 was 21.9%.

Credit Quality

Provision for credit losses Provision for credit losses was $69.7 million for the third quarter of 2020, a decrease of $9.1 million, from the second quarter of 2020. The provision for credit losses in the third quarter of 2020 reflects a build to the allowance for credit losses primarily due to commercial portfolio credit risk management activities, driven by Capital Solutions loans and leases, as well as the impact of net charge offs. Third quarter 2020 net charge offs were $24.6 million compared to $3.4 million in the second quarter of 2020.

Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases were 0.28% for the third quarter of 2020, up 24 basis points from the second quarter of 2020. The increase from the second quarter of 2020 was due to an increase in net charge-offs in the commercial and industrial portfolio, primarily driven by two loans totaling $16.1 million of charge-offs. Subsequent to September 30, 2020, we received a $9.1 million full repayment related to one of these loans which was fully charged off at quarter-end.

Allowance for Credit Losses Allowance for credit losses ("ACL") includes both the allowance for loan and lease losses, which is presented separately on the Consolidated Statements of Financial Condition, and the reserve for unfunded lending commitments, which is included in other liabilities on the Consolidated Statements of Financial Condition. The ACL was $549.4 million, or 1.60% of total loans and leases, at September 30, 2020, up from $503.9 million, or 1.42%, at June 30, 2020. The ACL as a percentage of total loans and leases, excluding PPP loans, a non-GAAP financial measure, was 1.69% at September 30, 2020, an increase from 1.49% at June 30, 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The PPP loans are individually guaranteed by the Small Business Administration and therefore the accounting under CECL does not require reserves to be recorded on such loans. The increase in the ACL and the ACL as a percentage of total loans and leases from June 30, 2020 was primarily due to commercial portfolio credit risk management activities, driven by Capital Solutions loans and leases, partially offset by a decrease in reserve for unfunded lending commitments.

Nonaccrual loans and leases Nonaccrual loans and leases were $376.7 million at September 30, 2020 and represented 1.10% of total loans and leases, compared to $291.5 million, or 0.82% of total loans and leases, at June 30, 2020. The $85.3 million increase in nonaccrual loans and leases from June 30, 2020 was impacted by $46.6 million of motor coach and shuttle bus balances, within our commercial and industrial portfolio, that moved to nonaccrual.

Balance Sheet

Loans and leases Loans and leases were $34.3 billion at September 30, 2020, a decrease of $1.2 billion, or 3.4%, compared to $35.5 billion at June 30, 2020. The decrease was primarily due to a decline in inventory finance loans in the commercial and industrial portfolio related to continued strong dealer activity and the lack of backfill from manufacturers as a result of the previous economic shutdown and slow reopening, in addition to a decline in the consumer loan portfolio. At both September 30, 2020 and June 30, 2020, we had $1.8 billion of PPP loans outstanding, all included in our commercial and industrial loan portfolio.

Investment securities The investment securities portfolio was $7.6 billion at September 30, 2020, an increase of $267.0 million, or 3.6%, compared to $7.3 billion at June 30, 2020. The increase from June 30, 2020 was primarily due to purchases of residential and commercial mortgage-backed securities and municipal securities.

Deposits Deposits were $39.2 billion at both September 30, 2020 and June 30, 2020, despite the continued run-off of higher cost certificates of deposit. Increases in checking deposit account balances of $760.4 million and noninterest bearing deposits of $210.8 million were offset by decreases in certificates of deposits of $808.2 million, money market accounts of $186.9 million and savings account balances of $14.9 million as of September 30, 2020 compared to June 30, 2020.

Capital The common equity Tier 1 capital ratio was 11.45% at September 30, 2020, compared to 11.06% at June 30, 2020. Our capital ratios reflect our election of the five-year CECL transition for regulatory capital purposes.

In response to the COVID-19 pandemic, TCF temporarily suspended buybacks under its share repurchase program, but retains the ability to resume as circumstances warrant. TCF is well positioned with strong capital and liquidity and is committed to supporting our customers, team members and communities.

TCF's board of directors also declared a regular quarterly cash dividend of $0.35 per common share payable on December 1, 2020 to shareholders of record at the close of business on November 16, 2020. In addition, the board of directors declared a quarterly cash dividend of $0.35625 per depositary share payable on December 1, 2020 to shareholders of record of the depositary shares, representing a 1/1,000th interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock, at the close of business on November 16, 2020.

Conference Call Details TCF will host a conference call to discuss third quarter 2020 results on Tuesday, October 27, 2020 at 10:00 a.m. Eastern Time. The conference call will be available via a live webcast on the Investor Relations section of TCF's website, ir.tcfbank.com, and archived for replay. The conference call can also be accessed by dialing (844) 512-2926 and entering access code 8567352. To listen to the replay via phone, please dial (877) 344-7529 and enter access code 10148473. The replay begins approximately one hour after the call is completed on Tuesday, October 27, 2020 and will be available through Tuesday, November 3, 2020.

TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $48 billion in total assets at September 30, 2020 and a top 10 deposit market share in the Midwest. TCF's primary banking subsidiary, TCF National Bank, is a premier Midwest bank offering consumer and commercial banking, trust and wealth management, and specialty leasing and lending products and services to consumers, small businesses and commercial clients. TCF has approximately 475 banking centers primarily located in Michigan, Illinois and Minnesota with additional locations in Colorado, Ohio, South Dakota and Wisconsin. TCF also conducts business across all 50 states and Canada through its specialty lending and leasing businesses. To learn more about TCF, visit ir.tcfbank.com.

Cautionary Statements for Purposes of the Safe Harbor Provisions of the Securities Litigation Reform Act

Any statements contained in this earnings release regarding the outlook for the Corporation's businesses and their respective markets, such as projections of future performance, targets, guidance, statements of the Corporation's plans and objectives, forecasts of market trends and other matters are forward-looking statements based on the Corporation's assumptions and beliefs. Such statements may be identified by such words or phrases as "will likely result," "are expected to," "will continue," "outlook," "will benefit," "is anticipated," "estimate," "project," "management believes" or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed in such statements and no assurance can be given that the results in any forward-looking statement will be achieved. For these statements, TCF claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date on which it is made and we disclaim any obligation to subsequently revise any forward-looking statement to reflect events or circumstances after such date or to reflect the occurrence of anticipated or unanticipated events.

Certain factors could cause the Corporation's future results to differ materially from those expressed or implied in any forward-looking statements contained herein. These factors include the factors discussed in Part I, Item 1A of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2019 under the heading "Risk Factors" or otherwise disclosed in documents filed or furnished by the Corporation with or to the SEC after the filing of such Annual Report on Form 10-K, and any other cautionary statements, written or oral, which may be made or referred to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

This release also contains forward-looking statements regarding TCF's outlook or expectations with respect to post-merger integration. Examples of forward-looking statements include, but are not limited to, statements regarding outlook and expectations with respect to the strategic and financial benefits of the merger, including the expected impact on TCF's future financial performance (including operating and return metrics and operational aspects of post-merger integration).

Use of Non-GAAP Financial Measures

Management uses the adjusted net income, adjusted diluted earnings per common share, adjusted ROAA, adjusted ROACE, ROATCE, adjusted ROATCE, adjusted efficiency ratio, adjusted net interest income, net interest margin (FTE), adjusted net interest margin (FTE), adjusted noninterest income, adjusted noninterest expense, tangible book value per common share, tangible common equity to tangible assets and the allowance for credit losses as percentage of total loans and leases, excluding PPP loans, internally to measure performance and believes that these financial measures not recognized under generally accepted accounting principles in the United States ("GAAP") (i.e. non-GAAP) provide meaningful information to investors that will permit them to assess the Corporation's capital and ability to withstand unexpected market or economic conditions and to assess the performance of the Corporation in relation to other banking institutions on the same basis as that applied by management, analysts and banking regulators. TCF adjusts certain results to exclude merger-related expenses and notable items in addition to presenting net interest income and net interest margin (FTE) excluding purchase accounting accretion and amortization and the impact of PPP loans. Management believes these measures are useful to investors in understanding TCF's business and operating results.

These non-GAAP financial measures are not defined by GAAP and other entities may calculate them differently than TCF does. Non-GAAP financial measures have inherent limitations and are not required to be uniformly applied. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a corporation, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes selected items does not represent the amount that effectively accrues directly to shareholders. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measure may be found in the reconciliation tables included in this press release.

(1) Net of tax benefit at our normal tax rate and other tax benefits.

(2) Second quarter of 2020 included within other noninterest expense ($0.8 million) and compensation and employee benefits ($0.1 million).

(3) Second quarter of 2020 included within other noninterest income ($14.7 million net gain) and other noninterest expense ($0.6 million).

(4) Included within other noninterest income.

TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ: TCF) today reported net income of $55.7 million, or diluted earnings per common share of $0.35, for the third quarter of 2020, compared with $23.8 million, or diluted earnings per common share of $0.14, for the second quarter of 2020. Adjusted net income was $98.7 million, or $0.63 per diluted common share for the third quarter of 2020, compared with $84.9 million, or $0.54 per diluted common share, for the second quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

"The highlight of the third quarter was the successful completion of integration activities related to our merger of equals, with our business now aligned under a single brand and going to market as One TCF across the broader footprint," said Craig R. Dahl, president and chief executive officer. "We were able to complete these efforts on time, despite the challenges related to COVID-19 and our work-from-home approach. This success was driven by the hard work and dedication of our team members across the bank who continued to focus on serving our customers. As a result, we remain on track to achieve our expense target for the fourth quarter. Now fully integrated, we can bring the full breadth and depth of our services - and our team members' expertise - to enhance our ability to support our customers and communities.

"Financial results for the third quarter included a stable net interest margin, significant declines in loan deferrals, and continued strong capital ratios and liquidity. While loan demand remained at relatively low levels due to economic uncertainty, we have begun to see trends gradually improve over the past couple of months as commercial loan pipelines have been building, including in CRE and certain C&I sectors such as manufacturing. In addition, we are continuing to monitor credit quality trends as we further isolate the portions of certain portfolios that are more heavily impacted by COVID.

"As we look ahead, we expect to benefit from the outcomes of our merger-of-equals, including our expanded product set that is allowing us to better meet the needs of our commercial and consumer customers. This has also resulted in various merger-related revenue synergy initiatives that are still in front of us and provide opportunities to drive incremental organic growth."

Net Interest Income and Net Interest Margin

Net interest income was $377.2 million for the third quarter of 2020, a decrease of $1.2 million, or 0.3%, from the second quarter of 2020. Purchase accounting accretion and amortization included in net interest income was $17.7 million for the third quarter of 2020, compared to $18.2 million for the second quarter of 2020. Additionally, third quarter of 2020 net interest income recorded included $14.7 million of interest and fee income from PPP less funding costs, compared to $9.6 million for the second quarter of 2020. Adjusted net interest income, excluding purchase accounting accretion and amortization and the impact from PPP loans, a non-GAAP financial measure, was $344.7 million for the third quarter of 2020, compared to $350.6 million for the second quarter of 2020. Net interest margin was 3.31% for the third quarter of 2020, compared to 3.33% in the second quarter of 2020, while net interest margin on a fully tax-equivalent basis (FTE), a non-GAAP financial measure, was 3.34%, down one basis point from the second quarter of 2020. The decrease in net interest margin from the second quarter of 2020 was driven by higher average cash balances and lower yields on loans, leases and securities, partially offset by lower cost of funds. Adjusted net interest margin FTE, excluding purchase accounting accretion and amortization and the impact of PPP loans, a non-GAAP financial measure, was 3.19% for the third quarter of 2020, down one basis point from the second quarter of 2020. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables for reconciliations of our noted non-GAAP measures.

Noninterest Income

Noninterest income was $118.8 million for the third quarter of 2020, a decrease of $14.2 million, or 10.7%, from the second quarter of 2020. Noninterest income for the third quarter of 2020 included a notable item of an $154 thousand loan servicing rights impairment, included in other noninterest income. Noninterest income for the second quarter of 2020 included notable items of a $14.7 million gain on the sale of our Arizona branches and an $8.9 million loan servicing rights impairment, both included in other noninterest income. Adjusted noninterest income, a non-GAAP financial measure, for the third quarter of 2020 was $119.0 million, compared to $127.2 million in the second quarter of 2020. The third quarter of 2020 noninterest income, compared to the second quarter of 2020, also included decreases of $5.5 million in net gains on sales of loans and leases, $5.3 million in leasing revenue due to a decrease in sales-type lease revenue through our equipment financing activity, and $2.7 million in servicing fee revenue due to accelerated loan servicing rights amortization related to faster prepayment speeds, partially offset by increases of $2.7 million in card and ATM revenue, $2.6 million in fees and service charges on deposit accounts, and $2.3 million in net gains on investment securities. The third quarter of 2020 also included a $2.6 million unfavorable interest rate swap mark-to-market adjustment resulting from changes in the interest rate environment, included in other noninterest income, compared to an unfavorable interest rate swap mark-to-market adjustment of $428 thousand in the second quarter of 2020.

Noninterest Expense

Noninterest expense was $373.4 million for the third quarter of 2020, a decrease of $26.8 million, or 6.7%, from the second quarter of 2020. The decrease in the third quarter of 2020 reflected decreases in merger-related expenses, occupancy and equipment expense and compensation and benefits expense, partially offset by an increase in other noninterest expense. The third quarter of 2020 included $54.0 million of merger-related expenses, compared to $81.6 million for the second quarter of 2020. Noninterest expense for the second quarter of 2020 also included $0.9 million of expense related to the sale of the Legacy TCF auto finance portfolio ($0.8 million in other noninterest expense and $0.1 million in compensation and employee benefits) and $0.6 million of expense related to branch exit costs, included in other noninterest expense considered notable items. Excluding merger-related expenses and notable items, adjusted noninterest expense, a non-GAAP financial measure, was $319.4 million for the third quarter of 2020, compared to $317.2 million for the second quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The third quarter of 2020 also included $1.8 million of federal historic tax credit amortization, included in other noninterest expense, compared to $0.2 million in the second quarter of 2020.

Income Tax Expense

Income tax benefit for the third quarter of 2020 was $4.4 million, compared to income tax expense of $6.2 million, an effective tax rate of 19.1% for the second quarter of 2020. Income tax for the third quarter of 2020 included a benefit of $16.0 million attributable to tax net operating loss carryback benefits associated with the CARES Act. Excluding the benefit provided by the CARES Act, our effective tax rate for the third quarter of 2020 was 21.9%.

Credit Quality

Provision for credit losses Provision for credit losses was $69.7 million for the third quarter of 2020, a decrease of $9.1 million, from the second quarter of 2020. The provision for credit losses in the third quarter of 2020 reflects a build to the allowance for credit losses primarily due to commercial portfolio credit risk management activities, driven by Capital Solutions loans and leases, as well as the impact of net charge offs. Third quarter 2020 net charge offs were $24.6 million compared to $3.4 million in the second quarter of 2020.

Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases were 0.28% for the third quarter of 2020, up 24 basis points from the second quarter of 2020. The increase from the second quarter of 2020 was due to an increase in net charge-offs in the commercial and industrial portfolio, primarily driven by two loans totaling $16.1 million of charge-offs. Subsequent to September 30, 2020, we received a $9.1 million full repayment related to one of these loans which was fully charged off at quarter-end.

Allowance for Credit Losses Allowance for credit losses ("ACL") includes both the allowance for loan and lease losses, which is presented separately on the Consolidated Statements of Financial Condition, and the reserve for unfunded lending commitments, which is included in other liabilities on the Consolidated Statements of Financial Condition. The ACL was $549.4 million, or 1.60% of total loans and leases, at September 30, 2020, up from $503.9 million, or 1.42%, at June 30, 2020. The ACL as a percentage of total loans and leases, excluding PPP loans, a non-GAAP financial measure, was 1.69% at September 30, 2020, an increase from 1.49% at June 30, 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The PPP loans are individually guaranteed by the Small Business Administration and therefore the accounting under CECL does not require reserves to be recorded on such loans. The increase in the ACL and the ACL as a percentage of total loans and leases from June 30, 2020 was primarily due to commercial portfolio credit risk management activities, driven by Capital Solutions loans and leases, partially offset by a decrease in reserve for unfunded lending commitments.

Nonaccrual loans and leases Nonaccrual loans and leases were $376.7 million at September 30, 2020 and represented 1.10% of total loans and leases, compared to $291.5 million, or 0.82% of total loans and leases, at June 30, 2020. The $85.3 million increase in nonaccrual loans and leases from June 30, 2020 was impacted by $46.6 million of motor coach and shuttle bus balances, within our commercial and industrial portfolio, that moved to nonaccrual.

Balance Sheet

Loans and leases Loans and leases were $34.3 billion at September 30, 2020, a decrease of $1.2 billion, or 3.4%, compared to $35.5 billion at June 30, 2020. The decrease was primarily due to a decline in inventory finance loans in the commercial and industrial portfolio related to continued strong dealer activity and the lack of backfill from manufacturers as a result of the previous economic shutdown and slow reopening, in addition to a decline in the consumer loan portfolio. At both September 30, 2020 and June 30, 2020, we had $1.8 billion of PPP loans outstanding, all included in our commercial and industrial loan portfolio.

Investment securities The investment securities portfolio was $7.6 billion at September 30, 2020, an increase of $267.0 million, or 3.6%, compared to $7.3 billion at June 30, 2020. The increase from June 30, 2020 was primarily due to purchases of residential and commercial mortgage-backed securities and municipal securities.

Deposits Deposits were $39.2 billion at both September 30, 2020 and June 30, 2020, despite the continued run-off of higher cost certificates of deposit. Increases in checking deposit account balances of $760.4 million and noninterest bearing deposits of $210.8 million were offset by decreases in certificates of deposits of $808.2 million, money market accounts of $186.9 million and savings account balances of $14.9 million as of September 30, 2020 compared to June 30, 2020.

Capital The common equity Tier 1 capital ratio was 11.45% at September 30, 2020, compared to 11.06% at June 30, 2020. Our capital ratios reflect our election of the five-year CECL transition for regulatory capital purposes.

In response to the COVID-19 pandemic, TCF temporarily suspended buybacks under its share repurchase program, but retains the ability to resume as circumstances warrant. TCF is well positioned with strong capital and liquidity and is committed to supporting our customers, team members and communities.

TCF's board of directors also declared a regular quarterly cash dividend of $0.35 per common share payable on December 1, 2020 to shareholders of record at the close of business on November 16, 2020. In addition, the board of directors declared a quarterly cash dividend of $0.35625 per depositary share payable on December 1, 2020 to shareholders of record of the depositary shares, representing a 1/1,000th interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock, at the close of business on November 16, 2020.

Conference Call Details TCF will host a conference call to discuss third quarter 2020 results on Tuesday, October 27, 2020 at 10:00 a.m. Eastern Time. The conference call will be available via a live webcast on the Investor Relations section of TCF's website, ir.tcfbank.com, and archived for replay. The conference call can also be accessed by dialing (844) 512-2926 and entering access code 8567352. To listen to the replay via phone, please dial (877) 344-7529 and enter access code 10148473. The replay begins approximately one hour after the call is completed on Tuesday, October 27, 2020 and will be available through Tuesday, November 3, 2020.

TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $48 billion in total assets at September 30, 2020 and a top 10 deposit market share in the Midwest. TCF's primary banking subsidiary, TCF National Bank, is a premier Midwest bank offering consumer and commercial banking, trust and wealth management, and specialty leasing and lending products and services to consumers, small businesses and commercial clients. TCF has approximately 475 banking centers primarily located in Michigan, Illinois and Minnesota with additional locations in Colorado, Ohio, South Dakota and Wisconsin. TCF also conducts business across all 50 states and Canada through its specialty lending and leasing businesses. To learn more about TCF, visit ir.tcfbank.com.

Cautionary Statements for Purposes of the Safe Harbor Provisions of the Securities Litigation Reform Act

Any statements contained in this earnings release regarding the outlook for the Corporation's businesses and their respective markets, such as projections of future performance, targets, guidance, statements of the Corporation's plans and objectives, forecasts of market trends and other matters are forward-looking statements based on the Corporation's assumptions and beliefs. Such statements may be identified by such words or phrases as "will likely result," "are expected to," "will continue," "outlook," "will benefit," "is anticipated," "estimate," "project," "management believes" or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed in such statements and no assurance can be given that the results in any forward-looking statement will be achieved. For these statements, TCF claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date on which it is made and we disclaim any obligation to subsequently revise any forward-looking statement to reflect events or circumstances after such date or to reflect the occurrence of anticipated or unanticipated events.

Certain factors could cause the Corporation's future results to differ materially from those expressed or implied in any forward-looking statements contained herein. These factors include the factors discussed in Part I, Item 1A of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2019 under the heading "Risk Factors" or otherwise disclosed in documents filed or furnished by the Corporation with or to the SEC after the filing of such Annual Report on Form 10-K, and any other cautionary statements, written or oral, which may be made or referred to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

This release also contains forward-looking statements regarding TCF's outlook or expectations with respect to post-merger integration. Examples of forward-looking statements include, but are not limited to, statements regarding outlook and expectations with respect to the strategic and financial benefits of the merger, including the expected impact on TCF's future financial performance (including operating and return metrics and operational aspects of post-merger integration).

Use of Non-GAAP Financial Measures

Management uses the adjusted net income, adjusted diluted earnings per common share, adjusted ROAA, adjusted ROACE, ROATCE, adjusted ROATCE, adjusted efficiency ratio, adjusted net interest income, net interest margin (FTE), adjusted net interest margin (FTE), adjusted noninterest income, adjusted noninterest expense, tangible book value per common share, tangible common equity to tangible assets and the allowance for credit losses as percentage of total loans and leases, excluding PPP loans, internally to measure performance and believes that these financial measures not recognized under generally accepted accounting principles in the United States ("GAAP") (i.e. non-GAAP) provide meaningful information to investors that will permit them to assess the Corporation's capital and ability to withstand unexpected market or economic conditions and to assess the performance of the Corporation in relation to other banking institutions on the same basis as that applied by management, analysts and banking regulators. TCF adjusts certain results to exclude merger-related expenses and notable items in addition to presenting net interest income and net interest margin (FTE) excluding purchase accounting accretion and amortization and the impact of PPP loans. Management believes these measures are useful to investors in understanding TCF's business and operating results.

These non-GAAP financial measures are not defined by GAAP and other entities may calculate them differently than TCF does. Non-GAAP financial measures have inherent limitations and are not required to be uniformly applied. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a corporation, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes selected items does not represent the amount that effectively accrues directly to shareholders. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measure may be found in the reconciliation tables included in this press release.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Condition (Unaudited)

Change From

(Dollars in Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, 2020 Sep 30, 2019thousands) 2020 2020 2020 2019 2019 $ % $ %

ASSETS:

Cash and cash equivalents:

Cash and due from $ 538,481 $ 535,507 $ 713,413 $ 491,787 $ 586,060 $ 2,974 0.6% $ (47,579 ) (8.1)%banks

Interest-bearingdeposits with other 1,232,773 2,545,170 565,458 736,584 736,954 (1,312,397 ) (51.6) 495,819 67.3banks

Total cash and cash 1,771,254 3,080,677 1,278,871 1,228,371 1,323,014 (1,309,423 ) (42.5) 448,240 33.9equivalents

Federal Home LoanBank and Federal 300,444 386,483 484,461 442,440 290,238 (86,039 ) (22.3) 10,206 3.5Reserve Bankstocks, at cost

Investment securities:

Available-for-sale, 7,446,163 7,219,373 7,025,224 6,720,001 5,579,835 226,790 3.1 1,866,328 33.4at fair value

Held-to-maturity, 170,309 130,101 135,619 139,445 144,000 40,208 30.9 26,309 18.3at amortized cost

Total investment 7,616,472 7,349,474 7,160,843 6,859,446 5,723,835 266,998 3.6 1,892,637 33.1securities

Loans and leases 460,427 532,799 287,177 199,786 1,436,069 (72,372 ) (13.6) (975,642 ) (67.9)held-for-sale

Loans and leases 34,343,691 35,535,824 35,921,614 34,497,464 33,510,752 (1,192,133 ) (3.4) 832,939 2.5

Allowance for loan (515,229 ) (461,114 ) (406,383 ) (113,052 ) (121,218 ) (54,115 ) (11.7) (394,011 ) N.M.and lease losses

Loans and leases, 33,828,462 35,074,710 35,515,231 34,384,412 33,389,534 (1,246,248 ) (3.6) 438,928 1.3net

Premises and 469,699 472,240 516,454 533,138 554,194 (2,541 ) (0.5) (84,495 ) (15.2)equipment, net

Goodwill 1,313,046 1,313,046 1,313,046 1,299,878 1,265,111 0 0.0 47,935 3.8

Other intangible 151,875 157,373 162,887 168,368 215,910 (5,498 ) (3.5) (64,035 ) (29.7)assets, net

Loan servicing 38,253 38,816 47,283 56,313 55,301 (563 ) (1.5) (17,048 ) (30.8)rights

Other assets 1,615,857 1,656,842 1,828,130 1,479,401 1,439,305 (40,985 ) (2.5) 176,552 12.3

Total assets $ 47,565,789 $ 50,062,460 $ 48,594,383 $ 46,651,553 $ 45,692,511 $ (2,496,671 ) (5.0)% $ 1,873,278 4.1%

LIABILITIES AND EQUITY:

Deposits:

Noninterest-bearing $ 10,691,041 $ 10,480,245 $ 8,237,916 $ 7,970,590 $ 7,979,900 $ 210,796 2.0% $ 2,711,141 34.0%

Interest-bearing 28,481,056 28,730,627 27,561,387 26,497,873 27,306,174 (249,571 ) (0.9) 1,174,882 4.3

Total deposits 39,172,097 39,210,872 35,799,303 34,468,463 35,286,074 (38,775 ) (0.1) 3,886,023 11.0

Short-term 655,461 2,772,998 3,482,535 2,669,145 2,607,300 (2,117,537 ) (76.4) (1,951,839 ) (74.9)borrowings

Long-term 871,845 936,908 2,600,594 2,354,448 860,482 (65,063 ) (6.9) 11,363 1.3borrowings

Other liabilities 1,207,966 1,483,127 1,056,118 1,432,256 1,245,238 (275,161 ) (18.6) (37,272 ) (3.0)

Total liabilities 41,907,369 44,403,905 42,938,550 40,924,312 39,999,094 (2,496,536 ) (5.6) 1,908,275 4.8

Equity:

Preferred stock 169,302 169,302 169,302 169,302 169,302 - - - -

Common stock 152,380 152,233 152,186 152,966 153,571 147 0.1 (1,191 ) (0.8)

Additional paid-in 3,450,669 3,441,925 3,433,234 3,462,080 3,478,159 8,744 0.3 (27,490 ) (0.8)capital

Retained earnings 1,700,044 1,700,480 1,732,932 1,896,427 1,840,214 (436 ) 0.0 (140,170 ) (7.6)

Accumulated othercomprehensive 191,771 198,408 166,170 54,277 56,228 (6,637 ) (3.3) 135,543 N.M.income

Other (27,122 ) (27,093 ) (28,140 ) (28,037 ) (27,370 ) (29 ) (0.1) 248 0.9

Total TCF FinancialCorporation 5,637,044 5,635,255 5,625,684 5,707,015 5,670,104 1,789 0.0 (33,060 ) (0.6)shareholders'equity

Non-controlling 21,376 23,300 30,149 20,226 23,313 (1,924 ) (8.3) (1,937 ) (8.3)interest

Total equity 5,658,420 5,658,555 5,655,833 5,727,241 5,693,417 (135 ) 0.0 (34,997 ) (0.6)

Total liabilities $ 47,565,789 $ 50,062,460 $ 48,594,383 $ 46,651,553 $ 45,692,511 $ (2,496,671 ) (5.0)% $ 1,873,278 4.1%and equity

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

Quarter Ended

Change From

(Dollars in thousands)

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30, 2020

Sep. 30, 2019

2020

2020

2020

2019

2019

$

%

$

%

Interest income:

Interest and fees on loans and leases

$

373,112

$

392,826

$

443,096

$

446,738

$

417,370

$

(19,714

)

(5.0)%

$

(44,258

)

(10.6)%

Interest on investment securities:

Taxable

35,648

32,505

40,920

36,282

31,038

3,143

9.7

4,610

14.9

Tax-exempt

3,892

4,155

4,349

4,374

3,385

(263

)

(6.3)

507

15.0

Interest on loans held-for-sale

3,829

3,322

1,561

15,767

1,408

507

15.3

2,421

171.9

Interest on other earning assets

3,967

5,562

5,466

6,617

6,607

(1,595

)

(28.7)

(2,640

)

(40.0)

Total interest income

420,448

438,370

495,392

509,778

459,808

(17,922

)

(4.1)

(39,360

)

(8.6)

Interest expense:

Interest on deposits

31,852

46,785

67,419

77,003

70,900

(14,933

)

(31.9)

(39,048

)

(55.1)

Interest on borrowings

11,429

13,226

26,492

24,022

17,115

(1,797

)

(13.6)

(5,686

)

(33.2)

Total interest expense

43,281

60,011

93,911

101,025

88,015

(16,730

)

(27.9)

(44,734

)

(50.8)

Net interest income

377,167

378,359

401,481

408,753

371,793

(1,192

)

(0.3)

5,374

1.4

Provision for credit losses

69,664

78,726

96,943

14,403

27,188

(9,062

)

(11.5)

42,476

156.2

Net interest income after provision for credit losses

307,503

299,633

304,538

394,350

344,605

7,870

2.6

(37,102

)

(10.8)

Noninterest income:

Leasing revenue

31,905

37,172

33,565

46,686

39,590

(5,267

)

(14.2)

(7,685

)

(19.4)

Fees and service charges on deposit accounts

25,470

22,832

34,597

39,356

34,384

2,638

11.6

(8,914

)

(25.9)

Net gains (losses) on sales of loans and leases

23,490

29,034

20,590

12,934

(5,984

)

(5,544

)

(19.1)

29,474

N.M.

Card and ATM revenue

23,383

20,636

21,685

24,751

23,315

2,747

13.3

68

0.3

Wealth management revenue

6,506

6,206

6,151

6,172

4,241

300

4.8

2,265

53.4

Servicing fee revenue

321

3,041

6,792

6,022

5,121

(2,720

)

(89.4)

(4,800

)

(93.7)

Net gains on investment securities

2,324

8

0

8

5,900

2,316

N.M.

(3,576

)

(60.6)

Other

5,411

14,125

13,583

22,123

(12,309

)

(8,714

)

(61.7)

17,720

N.M.

Total noninterest income

118,810

133,054

136,963

158,052

94,258

(14,244

)

(10.7)

24,552

26.0

Noninterest expense:

Compensation and employee benefits

168,323

171,799

171,528

180,969

155,745

(3,476

)

(2.0)

12,578

8.1

Occupancy and equipment

48,233

54,107

57,288

56,771

49,229

(5,874

)

(10.9)

(996

)

(2.0)

Lease financing equipment depreciation

17,932

18,212

18,450

18,629

19,408

(280

)

(1.5)

(1,476

)

(7.6)

Net foreclosed real estate and repossessed assets

1,518

998

1,859

4,242

2,203

520

52.1

(685

)

(31.1)

Merger-related expenses

54,011

81,619

36,728

47,025

111,259

(27,608

)

(33.8)

(57,248

)

(51.5)

Other

83,423

73,506

88,746

108,935

87,776

9,917

13.5

(4,353

)

(5.0)

Total noninterest expense

373,440

400,241

374,599

416,571

425,620

(26,801

)

(6.7)

(52,180

)

(12.3)

Income before income tax expense (benefit)

52,873

32,446

66,902

135,831

13,243

20,427

63.0

39,630

N.M.

Income tax expense (benefit)

(4,429

)

6,213

13,086

21,375

(11,735

)

(10,642

)

N.M.

7,306

62.3

Income after income tax expense (benefit)

57,302

26,233

53,816

114,456

24,978

31,069

118.4

32,324

129.4

Income attributable to non-controlling interest

1,564

2,469

1,917

2,057

2,830

(905

)

(36.7)

(1,266

)

(44.7)

Net income attributable to TCF Financial Corporation

55,738

23,764

51,899

112,399

22,148

31,974

134.5

33,590

151.7

Preferred stock dividends

2,494

2,494

2,493

2,494

2,494

-

-

-

-

Net income available to common shareholders

$

53,244

$

21,270

$

49,406

$

109,905

$

19,654

$

31,974

150.3%

$

33,590

170.9%

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)



Quarter Ended Change From

(Dollars in Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, 2020 Sep. 30, 2019thousands) 2020 2020 2020 2019 2019 $ % $ %

Interest income:

Interest and (10.6)fees on loans $ 373,112 $ 392,826 $ 443,096 $ 446,738 $ 417,370 $ (19,714 ) (5.0)% $ (44,258 ) %and leases

Interest oninvestment securities:

Taxable 35,648 32,505 40,920 36,282 31,038 3,143 9.7 4,610 14.9

Tax-exempt 3,892 4,155 4,349 4,374 3,385 (263 ) (6.3) 507 15.0

Interest onloans 3,829 3,322 1,561 15,767 1,408 507 15.3 2,421 171.9held-for-sale

Interest onother earning 3,967 5,562 5,466 6,617 6,607 (1,595 ) (28.7) (2,640 ) (40.0)assets

Total interest 420,448 438,370 495,392 509,778 459,808 (17,922 ) (4.1) (39,360 ) (8.6)income

Interest expense:

Interest on 31,852 46,785 67,419 77,003 70,900 (14,933 ) (31.9) (39,048 ) (55.1)deposits

Interest on 11,429 13,226 26,492 24,022 17,115 (1,797 ) (13.6) (5,686 ) (33.2)borrowings

Total interest 43,281 60,011 93,911 101,025 88,015 (16,730 ) (27.9) (44,734 ) (50.8)expense

Net interest 377,167 378,359 401,481 408,753 371,793 (1,192 ) (0.3) 5,374 1.4income

Provision for 69,664 78,726 96,943 14,403 27,188 (9,062 ) (11.5) 42,476 156.2credit losses

Net interestincome after 307,503 299,633 304,538 394,350 344,605 7,870 2.6 (37,102 ) (10.8)provision forcredit losses

Noninterest income:

Leasing revenue 31,905 37,172 33,565 46,686 39,590 (5,267 ) (14.2) (7,685 ) (19.4)

Fees andservice charges 25,470 22,832 34,597 39,356 34,384 2,638 11.6 (8,914 ) (25.9)on depositaccounts

Net gains(losses) on 23,490 29,034 20,590 12,934 (5,984 ) (5,544 ) (19.1) 29,474 N.M.sales of loansand leases

Card and ATM 23,383 20,636 21,685 24,751 23,315 2,747 13.3 68 0.3revenue

Wealthmanagement 6,506 6,206 6,151 6,172 4,241 300 4.8 2,265 53.4revenue

Servicing fee 321 3,041 6,792 6,022 5,121 (2,720 ) (89.4) (4,800 ) (93.7)revenue

Net gains oninvestment 2,324 8 0 8 5,900 2,316 N.M. (3,576 ) (60.6)securities

Other 5,411 14,125 13,583 22,123 (12,309 ) (8,714 ) (61.7) 17,720 N.M.

Totalnoninterest 118,810 133,054 136,963 158,052 94,258 (14,244 ) (10.7) 24,552 26.0income

Noninterest expense:

Compensationand employee 168,323 171,799 171,528 180,969 155,745 (3,476 ) (2.0) 12,578 8.1benefits

Occupancy and 48,233 54,107 57,288 56,771 49,229 (5,874 ) (10.9) (996 ) (2.0)equipment

Lease financingequipment 17,932 18,212 18,450 18,629 19,408 (280 ) (1.5) (1,476 ) (7.6)depreciation

Net foreclosedreal estate and 1,518 998 1,859 4,242 2,203 520 52.1 (685 ) (31.1)repossessedassets

Merger-related 54,011 81,619 36,728 47,025 111,259 (27,608 ) (33.8) (57,248 ) (51.5)expenses

Other 83,423 73,506 88,746 108,935 87,776 9,917 13.5 (4,353 ) (5.0)

Totalnoninterest 373,440 400,241 374,599 416,571 425,620 (26,801 ) (6.7) (52,180 ) (12.3)expense

Income beforeincome tax 52,873 32,446 66,902 135,831 13,243 20,427 63.0 39,630 N.M.expense(benefit)

Income taxexpense (4,429 ) 6,213 13,086 21,375 (11,735 ) (10,642 ) N.M. 7,306 62.3(benefit)

Income afterincome tax 57,302 26,233 53,816 114,456 24,978 31,069 118.4 32,324 129.4expense(benefit)

Incomeattributable to 1,564 2,469 1,917 2,057 2,830 (905 ) (36.7) (1,266 ) (44.7)non-controllinginterest

Net incomeattributable to 55,738 23,764 51,899 112,399 22,148 31,974 134.5 33,590 151.7TCF FinancialCorporation

Preferred stock 2,494 2,494 2,493 2,494 2,494 - - - -dividends

Net incomeavailable to $ 53,244 $ 21,270 $ 49,406 $ 109,905 $ 19,654 $ 31,974 150.3% $ 33,590 170.9%commonshareholders

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

Nine Months Ended September 30,

Change

(Dollars in thousands, except per share data)

2020

2019

$

%

Interest income:

Interest and fees on loans and leases

$

1,209,034

$

983,890

$

225,144

22.9%

Interest on investment securities:

Taxable

109,073

69,745

39,328

56.4

Tax-exempt

12,396

7,277

5,119

70.3

Interest on loans held-for-sale

8,712

2,832

5,880

N.M.

Interest on other earning assets

14,995

13,739

1,256

9.1

Total interest income

1,354,210

1,077,483

276,727

25.7

Interest expense:

Interest on deposits

146,056

149,154

(3,098

)

(2.1)

Interest on borrowings

51,147

48,050

3,097

6.4

Total interest expense

197,203

197,204

(1

)

0.0

Net interest income

1,157,007

880,279

276,728

31.4

Provision for credit losses

245,333

50,879

194,454

N.M.

Net interest income after provision for credit losses

911,674

829,400

82,274

9.9

Noninterest income:

Leasing revenue

102,642

117,032

(14,390

)

(12.3)

Fees and service charges on deposit accounts

82,899

88,504

(5,605

)

(6.3)

Net gains on sales of loans and leases

73,114

13,374

59,740

N.M.

Card and ATM revenue

65,704

62,470

3,234

5.2

Wealth management revenue

18,863

4,241

14,622

N.M.

Servicing fee revenue

10,154

14,754

(4,600

)

(31.2)

Net gains on investment securities

2,332

7,417

(5,085

)

(68.6)

Other

33,119

(312

)

33,431

N.M.

Total noninterest income

388,827

307,480

81,347

26.5

Noninterest expense:

Compensation and employee benefits

511,650

395,953

115,697

29.2

Occupancy and equipment

159,628

132,789

26,839

20.2

Lease financing equipment depreciation

54,594

57,797

(3,203

)

(5.5)

Net foreclosed real estate and repossessed assets

4,375

9,281

(4,906

)

(52.9)

Merger-related expenses

172,358

124,943

47,415

37.9

Other

245,675

194,781

50,894

26.1

Total noninterest expense

1,148,280

915,544

232,736

25.4

Income before income tax expense

152,221

221,336

(69,115

)

(31.2)

Income tax expense

14,870

28,866

(13,996

)

(48.5)

Income after income tax expense

137,351

192,470

(55,119

)

(28.6)

Income attributable to non-controlling interest

5,950

9,401

(3,451

)

(36.7)

Net income attributable to TCF Financial Corporation

131,401

183,069

(51,668

)

(28.2)

Preferred stock dividends

7,481

7,481

-

-

Net income available to common shareholders

$

123,920

$

175,588

$

(51,668

)

(29.4)%

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)



Nine Months Ended September Change 30,

(Dollars in thousands, 2020 2019 $ %except per share data)

Interest income:

Interest and fees on loans $ 1,209,034 $ 983,890 $ 225,144 22.9%and leases

Interest on investment securities:

Taxable 109,073 69,745 39,328 56.4

Tax-exempt 12,396 7,277 5,119 70.3

Interest on loans 8,712 2,832 5,880 N.M.held-for-sale

Interest on other earning 14,995 13,739 1,256 9.1assets

Total interest income 1,354,210 1,077,483 276,727 25.7

Interest expense:

Interest on deposits 146,056 149,154 (3,098 ) (2.1)

Interest on borrowings 51,147 48,050 3,097 6.4

Total interest expense 197,203 197,204 (1 ) 0.0

Net interest income 1,157,007 880,279 276,728 31.4

Provision for credit losses 245,333 50,879 194,454 N.M.

Net interest income after 911,674 829,400 82,274 9.9provision for credit losses

Noninterest income:

Leasing revenue 102,642 117,032 (14,390 ) (12.3)

Fees and service charges on 82,899 88,504 (5,605 ) (6.3)deposit accounts

Net gains on sales of loans 73,114 13,374 59,740 N.M.and leases

Card and ATM revenue 65,704 62,470 3,234 5.2

Wealth management revenue 18,863 4,241 14,622 N.M.

Servicing fee revenue 10,154 14,754 (4,600 ) (31.2)

Net gains on investment 2,332 7,417 (5,085 ) (68.6)securities

Other 33,119 (312 ) 33,431 N.M.

Total noninterest income 388,827 307,480 81,347 26.5

Noninterest expense:

Compensation and employee 511,650 395,953 115,697 29.2benefits

Occupancy and equipment 159,628 132,789 26,839 20.2

Lease financing equipment 54,594 57,797 (3,203 ) (5.5)depreciation

Net foreclosed real estate 4,375 9,281 (4,906 ) (52.9)and repossessed assets

Merger-related expenses 172,358 124,943 47,415 37.9

Other 245,675 194,781 50,894 26.1

Total noninterest expense 1,148,280 915,544 232,736 25.4

Income before income tax 152,221 221,336 (69,115 ) (31.2)expense

Income tax expense 14,870 28,866 (13,996 ) (48.5)

Income after income tax 137,351 192,470 (55,119 ) (28.6)expense

Income attributable to 5,950 9,401 (3,451 ) (36.7)non-controlling interest

Net income attributable to 131,401 183,069 (51,668 ) (28.2)TCF Financial Corporation

Preferred stock dividends 7,481 7,481 - -

Net income available to $ 123,920 $ 175,588 $ (51,668 ) (29.4)common shareholders %

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

Quarter Ended

Sep. 30, 2020 Jun. 30, 2020 Sep. 30, 2019

Average Yields Average Yields Average Yields & & &

(Dollars in thousands) Balance Interest^ Rates^ Balance Interest^ Rates^ Balance Interest^ Rates^ (1) (1)(2) (1) (1)(2) (1) (1)(2)

ASSETS:

Federal Home Loan Bank and $ 361,320 $ 2,973 3.27% $ 401,532 $ 4,376 4.38% $ 230,767 $ 806 1.39%Federal Reserve Bank stocks

Investment securities 135,332 573 1.69 132,054 71 0.21 143,078 602 1.68held-to-maturity

Investment securities available-for-sale:

Taxable 6,021,643 35,076 2.33 5,730,762 32,434 2.26 4,232,878 30,436 2.88

Tax-exempt^(3) 685,652 4,971 2.90 743,744 5,221 2.81 643,576 4,283 2.66

Loans and leases held-for-sale 490,886 3,829 3.13 356,671 3,322 3.73 118,482 1,408 4.74

Loans and leases^(3)(4)

Commercial and industrial 11,740,727 127,751 4.30 12,713,714 140,576 4.41 9,290,978 146,865 6.25

Commercial real estate 9,616,301 95,779 3.90 9,658,124 95,373 3.91 6,964,643 97,042 5.45

Lease financing 2,679,142 32,696 4.88 2,712,291 33,803 4.99 2,570,567 32,833 5.11

Residential mortgage 5,987,754 57,609 3.86 6,326,227 62,023 3.93 4,853,627 51,511 4.23

Home equity 3,399,468 43,489 5.09 3,509,107 45,314 5.19 3,433,830 56,166 6.49

Consumer installment 1,386,448 17,551 5.04 1,459,446 17,703 4.88 2,389,830 34,543 5.73

Total loans and leases^(3)(4) 34,809,840 374,875 4.26 36,378,909 394,792 4.33 29,503,475 418,960 5.62

Interest-bearing deposits with 2,572,254 994 0.16 1,587,665 1,186 0.30 933,014 5,800 2.44banks and other

Total interest-earning assets 45,076,927 423,291 3.72 45,331,337 441,402 3.88 35,805,270 462,295 5.11

Other assets 4,462,673 4,384,779 3,289,096

Total assets $ 49,539,600 $ 49,716,116 $ 39,094,366

LIABILITIES AND EQUITY:

Noninterest-bearing deposits $ 10,654,288 $ 9,830,687 $ 6,564,195

Interest-bearing deposits:

Savings 9,301,198 4,050 0.17 9,082,184 8,930 0.40 7,676,165 14,110 0.73

Certificates of deposit 6,657,697 18,446 1.10 7,491,502 26,744 1.44 7,320,720 38,233 2.07

Checking 7,029,914 2,025 0.11 6,649,288 2,329 0.14 4,805,843 5,520 0.46

Money market 5,501,747 7,331 0.53 5,380,547 8,782 0.66 3,490,922 13,037 1.48

Total interest-bearing 28,490,556 31,852 0.44 28,603,521 46,785 0.66 23,293,650 70,900 1.21deposits

Total deposits 39,144,844 31,852 0.32 38,434,208 46,785 0.49 29,857,845 70,900 0.94

Borrowings:

Short-term borrowings 2,153,030 2,511 0.46 3,016,490 4,085 0.54 1,884,228 5,345 1.11

Long-term borrowings 910,149 8,917 3.91 1,072,394 9,141 3.40 1,472,150 11,769 3.17

Total borrowings 3,063,179 11,428 1.48 4,088,884 13,226 1.29 3,356,378 17,114 2.01

Total interest-bearing 31,553,735 43,280 0.55 32,692,405 60,011 0.74 26,650,028 88,014 1.31liabilities

Total deposits and borrowings 42,208,023 43,280 0.41 42,523,092 60,011 0.57 33,214,223 88,014 1.05

Accrued expenses and other 1,633,850 1,534,769 1,197,014 liabilities

Total liabilities 43,841,873 44,057,861 34,411,237

Total TCF FinancialCorporation shareholders' 5,675,089 5,630,133 4,657,613 equity

Non-controlling interest in 22,638 28,122 25,516 subsidiaries

Total equity 5,697,727 5,658,255 4,683,129

Total liabilities and equity $ 49,539,600 $ 49,716,116 $ 39,094,366

Net interest spread (FTE) 3.31% 3.31% 4.06%

Net interest income (FTE) and $ 380,011 3.34% $ 381,391 3.35% $ 374,281 4.14%net interest margin (FTE)

Reconciliation to Reported Net Interest Income

Net interest income and net $377,167 3.31% $378,359 3.33% $371,793 4.12%interest margin (GAAP)

Adjustments for taxableequivalent

interest^(1)(3)

Loans and leases 1,763 1,966 1,590

Tax-exempt investment 1,079 1,066 898 securities

Total FTE adjustments 2,842 3,032 2,488

Net interest income and net $380,009 3.34% $381,391 3.35% $374,281 4.14%interest margin (FTE)

(1)

Interest and yields are presented on a fully tax-equivalent basis.

(2)

Annualized.

(3)

The yield on tax-exempt loans and investment securities available-for-sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.

(4)

Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income.

(1) Interest and yields are presented on a fully tax-equivalent basis.

(2) Annualized.

The yield on tax-exempt loans and investment securities available-for-sale(3) is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.

(4) Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

Nine Months Ended

9/30/2020

9/30/2019

Average

Yields &

Average

Yields &

(Dollars in thousands)

Balance

Interest(1)

Rates(1)(2)

Balance

Interest(1)

Rates(1)(2)

ASSETS:

Federal Home Loan Bank and Federal Reserve Bank stocks

$

405,680

$

10,501

3.46%

$

149,801

$

2,860

2.55%

Investment securities held-to-maturity

134,557

1,204

1.19

145,627

2,061

1.89

Investment securities available-for-sale:

Taxable

5,881,983

107,870

2.45

3,029,754

67,684

2.98

Tax-exempt(3)

734,110

15,695

2.85

461,499

9,210

2.66

Loans and leases held-for-sale

329,131

8,712

3.53

71,739

2,832

5.27

Loans and leases(3)(4)

Commercial and industrial

12,092,629

429,129

4.70

7,499,975

363,260

6.45

Commercial real estate

9,522,333

308,895

4.26

4,332,238

173,983

5.30

Lease financing

2,691,208

100,655

4.99

2,554,521

98,116

5.12

Residential mortgage

6,141,855

181,011

3.93

3,188,294

109,634

4.59

Home equity

3,474,012

139,906

5.38

3,161,083

160,206

6.78

Consumer installment

1,454,187

54,996

5.05

1,945,059

82,305

5.66

Total loans and leases(3)(4)

35,376,224

1,214,592

4.55

22,681,170

987,504

5.80

Interest-bearing deposits with banks and other

1,569,968

4,494

0.38

494,007

10,878

2.92

Total interest-earning assets

44,431,653

1,363,068

4.07

27,033,597

1,083,029

5.33

Other assets

4,318,287

2,249,678

Total assets

$

48,749,940

$

29,283,275

LIABILITIES AND EQUITY:

Noninterest-bearing deposits

$

9,475,952

$

4,831,271

Interest-bearing deposits:

Savings

8,992,197

26,649

0.40

6,799,432

37,094

0.73

Certificates of deposit

7,157,779

78,255

1.46

5,500,105

83,635

2.03

Checking

6,558,232

10,184

0.21

3,256,409

6,347

0.26

Money market

5,225,858

30,968

0.79

2,144,697

22,078

1.38

Total interest-bearing deposits

27,934,066

146,056

0.70

17,700,643

149,154

1.13

Total deposits

37,410,018

146,056

0.52

22,531,914

149,154

0.88

Borrowings:

Short-term borrowings

2,617,891

17,178

0.86

838,750

9,433

1.48

Long-term borrowings

1,527,986

33,968

2.95

1,543,398

38,616

3.32

Total borrowings

4,145,877

51,146

1.63

2,382,148

48,049

2.67

Total interest-bearing liabilities

32,079,943

197,202

0.82

20,082,791

197,203

1.31

Total deposits and borrowings

41,555,895

197,202

0.63

24,914,062

197,203

1.06

Accrued expenses and other liabilities

1,531,759

1,052,709

Total liabilities

43,087,654

25,966,771

Total TCF Financial Corporation shareholders' equity

5,636,933

3,289,946

Non-controlling interest in subsidiaries

25,353

26,558

Total equity

5,662,286

3,316,504

Total liabilities and equity

$

48,749,940

$

29,283,275

Net interest spread (FTE)

3.44%

4.27%

Net interest income (FTE) and net interest margin (FTE)

$

1,165,866

3.48%

$

885,826

4.36%

Reconciliation to Reported Net Interest Income

Net interest income and net interest margin (GAAP)

$

1,157,007

3.45%

$

880,279

4.35%

Adjustments for taxable equivalent interest(1)(3)

Loans

5,558

3,614

Tax-exempt investment securities

3,299

1,933

Total FTE adjustments

8,857

5,547

Net interest income and net interest margin (FTE)

$

1,165,864

3.48%

$

885,826

4.36%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)



Nine Months Ended

9/30/2020 9/30/2019

Average Yields Average Yields & &

(Dollars in Balance Interest^(1) Rates^ Balance Interest^ Rates^thousands) (1)(2) (1) (1)(2)

ASSETS:

Federal Home LoanBank and Federal $ 405,680 $ 10,501 3.46% $ 149,801 $ 2,860 2.55%Reserve Bank stocks

Investmentsecurities 134,557 1,204 1.19 145,627 2,061 1.89held-to-maturity

Investmentsecurities available-for-sale:

Taxable 5,881,983 107,870 2.45 3,029,754 67,684 2.98

Tax-exempt^(3) 734,110 15,695 2.85 461,499 9,210 2.66

Loans and leases 329,131 8,712 3.53 71,739 2,832 5.27held-for-sale

Loans and leases^ (3)(4)

Commercial and 12,092,629 429,129 4.70 7,499,975 363,260 6.45industrial

Commercial real 9,522,333 308,895 4.26 4,332,238 173,983 5.30estate

Lease financing 2,691,208 100,655 4.99 2,554,521 98,116 5.12

Residential 6,141,855 181,011 3.93 3,188,294 109,634 4.59mortgage

Home equity 3,474,012 139,906 5.38 3,161,083 160,206 6.78

Consumer 1,454,187 54,996 5.05 1,945,059 82,305 5.66installment

Total loans and 35,376,224 1,214,592 4.55 22,681,170 987,504 5.80leases^(3)(4)

Interest-bearingdeposits with banks 1,569,968 4,494 0.38 494,007 10,878 2.92and other

Totalinterest-earning 44,431,653 1,363,068 4.07 27,033,597 1,083,029 5.33assets

Other assets 4,318,287 2,249,678

Total assets $ 48,749,940 $ 29,283,275

LIABILITIES AND EQUITY:

Noninterest-bearing $ 9,475,952 $ 4,831,271 deposits

Interest-bearing deposits:

Savings 8,992,197 26,649 0.40 6,799,432 37,094 0.73

Certificates of 7,157,779 78,255 1.46 5,500,105 83,635 2.03deposit

Checking 6,558,232 10,184 0.21 3,256,409 6,347 0.26

Money market 5,225,858 30,968 0.79 2,144,697 22,078 1.38

Totalinterest-bearing 27,934,066 146,056 0.70 17,700,643 149,154 1.13deposits

Total deposits 37,410,018 146,056 0.52 22,531,914 149,154 0.88

Borrowings:

Short-term 2,617,891 17,178 0.86 838,750 9,433 1.48borrowings

Long-term 1,527,986 33,968 2.95 1,543,398 38,616 3.32borrowings

Total borrowings 4,145,877 51,146 1.63 2,382,148 48,049 2.67

Totalinterest-bearing 32,079,943 197,202 0.82 20,082,791 197,203 1.31liabilities

Total deposits and 41,555,895 197,202 0.63 24,914,062 197,203 1.06borrowings

Accrued expensesand other 1,531,759 1,052,709 liabilities

Total liabilities 43,087,654 25,966,771

Total TCF FinancialCorporation 5,636,933 3,289,946 shareholders'equity

Non-controllinginterest in 25,353 26,558 subsidiaries

Total equity 5,662,286 3,316,504

Total liabilities $ 48,749,940 $ 29,283,275 and equity

Net interest spread 3.44% 4.27%(FTE)

Net interest income(FTE) and net $ 1,165,866 3.48% $ 885,826 4.36%interest margin(FTE)

Reconciliation to Reported Net Interest Income

Net interest incomeand net interest $ 1,157,007 3.45% $ 880,279 4.35%margin (GAAP)

Adjustments fortaxable equivalent interest^(1)(3)

Loans 5,558 3,614

Tax-exemptinvestment 3,299 1,933 securities

Total FTE 8,857 5,547 adjustments

Net interest incomeand net interest $ 1,165,864 3.48% $ 885,826 4.36%margin (FTE)

(1)

Interest and yields are presented on a fully tax-equivalent basis.

(2)

Annualized.

(3)

The yield on tax-exempt loans and investment securities available-for-sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.

(4)

Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income.

(1) Interest and yields are presented on a fully tax-equivalent basis.

(2) Annualized.

The yield on tax-exempt loans and investment securities available-for-sale(3) is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.

(4) Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Quarterly Average Balance Sheets (Unaudited)

Quarter Ended

Change From

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30, 2020

Sep. 30, 2019

(Dollars in thousands)

2020

2020

2020

2019

2019

$

%

$

%

ASSETS:

Federal Home Loan Bank and Federal Reserve Bank stocks

$

361,320

$

401,532

$

454,675

$

388,640

$

230,767

$

(40,212

)

(10.0)%

$

130,553

56.6%

Investment securities held-to-maturity

135,332

132,054

136,277

140,434

143,078

3,278

2.5

(7,746

)

(5.4

)

Investment securities available-for-sale:

Taxable

6,021,643

5,730,762

5,892,006

4,960,520

4,232,878

290,881

5.1

1,788,765

42.3

Tax-exempt

685,652

743,744

773,468

778,994

643,576

(58,092

)

(7.8

)

42,076

6.5

Loans and leases held-for-sale

490,886

356,671

138,058

1,121,326

118,482

134,215

37.6

372,404

N.M.

Loans and leases(1) :

Commercial and industrial

11,740,727

12,713,714

11,827,315

10,955,937

9,290,978

(972,987

)

(7.7

)

2,449,749

26.4

Commercial real estate

9,616,301

9,658,124

9,291,540

9,057,834

6,964,643

(41,823

)

(0.4

)

2,651,658

38.1

Lease financing

2,679,142

2,712,291

2,682,323

2,616,360

2,570,567

(33,149

)

(1.2

)

108,575

4.2

Residential mortgage

5,987,754

6,326,227

6,113,279

6,023,647

4,853,627

(338,473

)

(5.4

)

1,134,127

23.4

Home equity

3,399,468

3,509,107

3,514,278

3,604,153

3,433,830

(109,639

)

(3.1

)

(34,362

)

(1.0

)

Consumer installment

1,386,448

1,459,446

1,517,412

1,546,952

2,389,830

(72,998

)

(5.0

)

(1,003,382

)

(42.0

)

Total loans and

leases(1)

34,809,840

36,378,909

34,946,147

33,804,883

29,503,475

(1,569,069

)

(4.3

)

5,306,365

18.0

Interest-bearing deposits with banks and other

2,572,254

1,587,665

538,971

656,555

933,014

984,589

62.0

1,639,240

175.7

Total interest-earning assets

45,076,927

45,331,337

42,879,602

41,851,352

35,805,270

(254,410

)

(0.6

)

9,271,657

25.9

Other assets

4,462,673

4,384,779

4,105,824

4,268,162

3,289,096

77,894

1.8

1,173,577

35.7

Total assets

$

49,539,600

$

49,716,116

$

46,985,426

$

46,119,514

$

39,094,366

$

(176,516

)

(0.4)%

$

10,445,234

26.7%

LIABILITIES AND EQUITY:

Noninterest-bearing deposits

$

10,654,288

$

9,830,687

$

7,929,933

$

7,968,769

$

6,564,195

$

823,601

8.4%

$

4,090,093

62.3

%

Interest-bearing deposits:

Savings

9,301,198

9,082,184

8,589,815

8,404,460

7,676,165

219,014

2.4

1,625,033

21.2

Certificates of deposit

6,657,697

7,491,502

7,329,632

7,825,573

7,320,720

(833,805

)

(11.1

)

(663,023

)

(9.1

)

Checking

7,029,914

6,649,288

5,990,309

5,891,566

4,805,843

380,626

5.7

2,224,071

46.3

Money market

5,501,747

5,380,547

4,792,248

4,463,476

3,490,922

121,200

2.3

2,010,825

57.6

Total interest-bearing deposits

28,490,556

28,603,521

26,702,004

26,585,075

23,293,650

(112,965

)

(0.4

)

5,196,906

22.3

Total deposits

39,144,844

38,434,208

34,631,937

34,553,844

29,857,845

710,636

1.8

9,286,999

31.1

Borrowings:

Short-term borrowings

2,153,030

3,016,490

2,689,262

2,585,682

1,884,228

(863,460

)

(28.6

)

268,802

14.3

Long-term borrowings

910,149

1,072,394

2,608,204

1,739,852

1,472,150

(162,245

)

(15.1

)

(562,001

)

(38.2

)

Total borrowings

3,063,179

4,088,884

5,297,466

4,325,534

3,356,378

(1,025,705

)

(25.1

)

(293,199

)

(8.7

)

Total interest-bearing liabilities

31,553,735

32,692,405

31,999,470

30,910,609

26,650,028

(1,138,670

)

(3.5

)

4,903,707

18.4

Total deposits and borrowings

42,208,023

42,523,092

39,929,403

38,879,378

33,214,223

(315,069

)

(0.7

)

8,993,800

27.1

Accrued expenses and other liabilities

1,633,850

1,534,769

1,425,536

1,549,017

1,197,014

99,081

6.5

436,836

36.5

Total liabilities

43,841,873

44,057,861

41,354,939

40,428,395

34,411,237

(215,988

)

(0.5

)

9,430,636

27.4

Total TCF Financial Corporation shareholders' equity

5,675,089

5,630,133

5,605,159

5,667,436

4,657,613

44,956

0.8

1,017,476

21.8

Non-controlling interest in subsidiaries

22,638

28,122

25,328

23,683

25,516

(5,484

)

(19.5

)

(2,878

)

(11.3

)

Total equity

5,697,727

5,658,255

5,630,487

5,691,119

4,683,129

39,472

0.7

1,014,598

21.7

Total liabilities and equity

$

49,539,600

$

49,716,116

$

46,985,426

$

46,119,514

$

39,094,366

$

(176,516

)

(0.4)%

$

10,445,234

26.7

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Quarterly Average Balance Sheets (Unaudited)



Quarter Ended Change From

Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, 2020 Sep. 30, 2019

(Dollars in 2020 2020 2020 2019 2019 $ % $ %thousands)

ASSETS:

Federal Home LoanBank and Federal $ 361,320 $ 401,532 $ 454,675 $ 388,640 $ 230,767 $ (40,212 ) (10.0)% $ 130,553 56.6%Reserve Bank stocks

Investmentsecurities 135,332 132,054 136,277 140,434 143,078 3,278 2.5 (7,746 ) (5.4 )held-to-maturity

Investmentsecurities available-for-sale:

Taxable 6,021,643 5,730,762 5,892,006 4,960,520 4,232,878 290,881 5.1 1,788,765 42.3

Tax-exempt 685,652 743,744 773,468 778,994 643,576 (58,092 ) (7.8 ) 42,076 6.5

Loans and leases 490,886 356,671 138,058 1,121,326 118,482 134,215 37.6 372,404 N.M.held-for-sale

Loans and leases^(1) :

Commercial and 11,740,727 12,713,714 11,827,315 10,955,937 9,290,978 (972,987 ) (7.7 ) 2,449,749 26.4 industrial

Commercial real 9,616,301 9,658,124 9,291,540 9,057,834 6,964,643 (41,823 ) (0.4 ) 2,651,658 38.1 estate

Lease financing 2,679,142 2,712,291 2,682,323 2,616,360 2,570,567 (33,149 ) (1.2 ) 108,575 4.2

Residential mortgage 5,987,754 6,326,227 6,113,279 6,023,647 4,853,627 (338,473 ) (5.4 ) 1,134,127 23.4

Home equity 3,399,468 3,509,107 3,514,278 3,604,153 3,433,830 (109,639 ) (3.1 ) (34,362 ) (1.0 )

Consumer installment 1,386,448 1,459,446 1,517,412 1,546,952 2,389,830 (72,998 ) (5.0 ) (1,003,382 ) (42.0 )

Total loans and 34,809,840 36,378,909 34,946,147 33,804,883 29,503,475 (1,569,069 ) (4.3 ) 5,306,365 18.0 leases^(1)

Interest-bearingdeposits with banks 2,572,254 1,587,665 538,971 656,555 933,014 984,589 62.0 1,639,240 175.7 and other

Totalinterest-earning 45,076,927 45,331,337 42,879,602 41,851,352 35,805,270 (254,410 ) (0.6 ) 9,271,657 25.9 assets

Other assets 4,462,673 4,384,779 4,105,824 4,268,162 3,289,096 77,894 1.8 1,173,577 35.7

Total assets $ 49,539,600 $ 49,716,116 $ 46,985,426 $ 46,119,514 $ 39,094,366 $ (176,516 ) (0.4)% $ 10,445,234 26.7%

LIABILITIES AND EQUITY:

Noninterest-bearing $ 10,654,288 $ 9,830,687 $ 7,929,933 $ 7,968,769 $ 6,564,195 $ 823,601 8.4% $ 4,090,093 62.3 %deposits

Interest-bearing deposits:

Savings 9,301,198 9,082,184 8,589,815 8,404,460 7,676,165 219,014 2.4 1,625,033 21.2

Certificates of 6,657,697 7,491,502 7,329,632 7,825,573 7,320,720 (833,805 ) (11.1 ) (663,023 ) (9.1 )deposit

Checking 7,029,914 6,649,288 5,990,309 5,891,566 4,805,843 380,626 5.7 2,224,071 46.3

Money market 5,501,747 5,380,547 4,792,248 4,463,476 3,490,922 121,200 2.3 2,010,825 57.6

Totalinterest-bearing 28,490,556 28,603,521 26,702,004 26,585,075 23,293,650 (112,965 ) (0.4 ) 5,196,906 22.3 deposits

Total deposits 39,144,844 38,434,208 34,631,937 34,553,844 29,857,845 710,636 1.8 9,286,999 31.1

Borrowings:

Short-term 2,153,030 3,016,490 2,689,262 2,585,682 1,884,228 (863,460 ) (28.6 ) 268,802 14.3 borrowings

Long-term borrowings 910,149 1,072,394 2,608,204 1,739,852 1,472,150 (162,245 ) (15.1 ) (562,001 ) (38.2 )

Total borrowings 3,063,179 4,088,884 5,297,466 4,325,534 3,356,378 (1,025,705 ) (25.1 ) (293,199 ) (8.7 )

Totalinterest-bearing 31,553,735 32,692,405 31,999,470 30,910,609 26,650,028 (1,138,670 ) (3.5 ) 4,903,707 18.4 liabilities

Total deposits and 42,208,023 42,523,092 39,929,403 38,879,378 33,214,223 (315,069 ) (0.7 ) 8,993,800 27.1 borrowings

Accrued expenses and 1,633,850 1,534,769 1,425,536 1,549,017 1,197,014 99,081 6.5 436,836 36.5 other liabilities

Total liabilities 43,841,873 44,057,861 41,354,939 40,428,395 34,411,237 (215,988 ) (0.5 ) 9,430,636 27.4

Total TCF FinancialCorporation 5,675,089 5,630,133 5,605,159 5,667,436 4,657,613 44,956 0.8 1,017,476 21.8 shareholders' equity

Non-controllinginterest in 22,638 28,122 25,328 23,683 25,516 (5,484 ) (19.5 ) (2,878 ) (11.3 )subsidiaries

Total equity 5,697,727 5,658,255 5,630,487 5,691,119 4,683,129 39,472 0.7 1,014,598 21.7

Total liabilities $ 49,539,600 $ 49,716,116 $ 46,985,426 $ 46,119,514 $ 39,094,366 $ (176,516 ) (0.4)% $ 10,445,234 26.7 %and equity

N.M. Not Meaningful(1)

Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income.

N.M. Not Meaningful (1) Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Quarterly Yields and Rates(1)(2) (Unaudited)

Quarter Ended

Change From

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2020

2020

2020

2019

2019

2020

2019

ASSETS:

Federal Home Loan Bank and Federal Reserve Bank stocks

3.27

%

4.38

%

2.79

%

3.24

%

1.39

%

(111)

bps188

bpsInvestment securities held-to-maturity

1.69

0.21

1.64

2.53

1.68

148

1

Investment securities available-for-sale:

Taxable

2.33

2.26

2.74

2.85

2.88

7

(55)

Tax-exempt(3)

2.90

2.81

2.85

2.84

2.66

9

24

Loans and leases held-for-sale

3.13

3.73

4.53

5.58

4.74

(60)

(161)

Loans and leases(3)

Commercial and industrial

4.30

4.41

5.42

5.63

6.25

(11)

(195)

Commercial real estate

3.90

3.91

5.01

5.38

5.45

(1)

(155)

Lease financing

4.88

4.99

5.09

5.11

5.11

(11)

(23)

Residential mortgage

3.86

3.93

4.02

4.05

4.23

(7)

(37)

Home equity

5.09

5.19

5.85

5.93

6.49

(10)

(140)

Consumer installment

5.04

4.88

5.23

4.97

5.73

16

(69)

Total loans and leases(3)

4.26

4.33

5.08

5.24

5.62

(7)

(136)

Interest-bearing deposits with banks and other

0.16

0.30

1.72

2.07

2.44

(14)

(228)

Total interest-earning assets

3.72

3.88

4.64

4.85

5.11

(16)

(139)

LIABILITIES:

Interest-bearing deposits:

Savings

0.17

0.40

0.64

0.71

0.73

(23)

(56)

Certificates of deposit

1.10

1.44

1.81

1.97

2.07

(34)

(97)

Checking

0.11

0.14

0.39

0.51

0.46

(3)

(35)

Money market

0.53

0.66

1.25

1.38

1.48

(13)

(95)

Total interest-bearing deposits

0.44

0.66

1.02

1.15

1.21

(22)

(77)

Total deposits

0.32

0.49

0.78

0.88

0.94

(17)

(62)

Borrowings:

Short-term borrowings

0.46

0.54

1.56

1.73

1.11

(8)

(65)

Long-term borrowings

3.91

3.40

2.42

2.87

3.17

51

74

Total borrowings

1.48

1.29

1.98

2.19

2.01

19

(53)

Total interest-bearing liabilities

0.55

0.74

1.18

1.29

1.31

(19)

(76)

Total deposits and borrowings

0.41

0.57

0.94

1.03

1.05

(16)

(64)

Net interest margin (GAAP)

3.31

3.33

3.73

3.86

4.12

(2)

(81)

Net interest margin (FTE)

3.34

3.35

3.76

3.89

4.14

(1)

(80)

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Quarterly Yields and Rates^(1)(2) (Unaudited)



Quarter Ended Change From

Sep. Jun. Mar. Dec. Sep. Jun. 30, Sep. 30, 30, 30, 31, 31, 30,

2020 2020 2020 2019 2019 2020 2019

ASSETS:

Federal Home LoanBank and Federal 3.27 % 4.38 % 2.79 % 3.24 % 1.39 % (111) bps 188 bpsReserve Bank stocks

Investmentsecurities 1.69 0.21 1.64 2.53 1.68 148 1 held-to-maturity

Investmentsecurities available-for-sale:

Taxable 2.33 2.26 2.74 2.85 2.88 7 (55)

Tax-exempt^(3) 2.90 2.81 2.85 2.84 2.66 9 24

Loans and leases 3.13 3.73 4.53 5.58 4.74 (60) (161)held-for-sale

Loans and leases^ (3)

Commercial and 4.30 4.41 5.42 5.63 6.25 (11) (195)industrial

Commercial real 3.90 3.91 5.01 5.38 5.45 (1) (155)estate

Lease financing 4.88 4.99 5.09 5.11 5.11 (11) (23)

Residential 3.86 3.93 4.02 4.05 4.23 (7) (37)mortgage

Home equity 5.09 5.19 5.85 5.93 6.49 (10) (140)

Consumer 5.04 4.88 5.23 4.97 5.73 16 (69)installment

Total loans and 4.26 4.33 5.08 5.24 5.62 (7) (136)leases^(3)

Interest-bearingdeposits with banks 0.16 0.30 1.72 2.07 2.44 (14) (228) and other



Totalinterest-earning 3.72 3.88 4.64 4.85 5.11 (16) (139) assets



LIABILITIES:

Interest-bearing deposits:



Savings 0.17 0.40 0.64 0.71 0.73 (23) (56)

Certificates of 1.10 1.44 1.81 1.97 2.07 (34) (97)deposit

Checking 0.11 0.14 0.39 0.51 0.46 (3) (35)

Money market 0.53 0.66 1.25 1.38 1.48 (13) (95)

Totalinterest-bearing 0.44 0.66 1.02 1.15 1.21 (22) (77) deposits

Total deposits 0.32 0.49 0.78 0.88 0.94 (17) (62)

Borrowings:

Short-term 0.46 0.54 1.56 1.73 1.11 (8) (65)borrowings

Long-term 3.91 3.40 2.42 2.87 3.17 51 74borrowings

Total borrowings 1.48 1.29 1.98 2.19 2.01 19 (53)



Totalinterest-bearing 0.55 0.74 1.18 1.29 1.31 (19) (76) liabilities

Total deposits and 0.41 0.57 0.94 1.03 1.05 (16) (64)borrowings



Net interest margin 3.31 3.33 3.73 3.86 4.12 (2) (81)(GAAP)

Net interest margin 3.34 3.35 3.76 3.89 4.14 (1) (80)(FTE)

(1)

Annualized.

(2)

Yields are presented on a fully tax-equivalent basis.

(3)

The yield on tax-exempt loans and investment securities available-for-sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.

(1) Annualized.

(2) Yields are presented on a fully tax-equivalent basis.

The yield on tax-exempt loans and investment securities available-for-sale(3) is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Composition of Loans (Unaudited)

Quarter Ended

Change From

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30, 2020

Sep 30, 2019

(Dollars in thousands)

2020

2020

2020

2019

2019

$

%

$

%

Commercial and industrial

$

11,557,237

$

12,200,721

$

12,326,943

$

11,439,602

$

10,913,343

$

(643,484

)

(5.3)%

$

643,894

5.9%

Commercial real estate

9,627,330

9,628,344

9,486,904

9,136,870

8,773,970

(1,014

)

0.0

853,360

9.7

Lease financing

2,724,686

2,707,402

2,708,998

2,699,869

2,594,373

17,284

0.6

130,313

5.0

Total commercial loan and lease portfolio

23,909,253

24,536,467

24,522,845

23,276,341

22,281,686

(627,214

)

(2.6)

1,627,567

7.3

Residential mortgage

5,790,251

6,123,118

6,435,314

6,179,805

6,057,404

(332,867

)

(5.4)

(267,153

)

(4.4)

Home equity

3,302,983

3,445,584

3,453,502

3,498,907

3,609,410

(142,601

)

(4.1)

(306,427

)

(8.5)

Consumer installment

1,341,204

1,430,655

1,509,953

1,542,411

1,562,252

(89,451

)

(6.3)

(221,048

)

(14.1)

Total consumer loan portfolio

10,434,438

10,999,357

11,398,769

11,221,123

11,229,066

(564,919

)

(5.1)

(794,628

)

(7.1)

Total

$

34,343,691

$

35,535,824

$

35,921,614

$

34,497,464

$

33,510,752

$

(1,192,133

)

(3.4)%

$

832,939

2.5%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Composition of Loans (Unaudited)



Quarter Ended Change From

Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, 2020 Sep 30, 2019

(Dollars in 2020 2020 2020 2019 2019 $ % $ %thousands)

Commercial (5.3)and $ 11,557,237 $ 12,200,721 $ 12,326,943 $ 11,439,602 $ 10,913,343 $ (643,484 ) % $ 643,894 5.9%industrial

Commercial 9,627,330 9,628,344 9,486,904 9,136,870 8,773,970 (1,014 ) 0.0 853,360 9.7real estate

Lease 2,724,686 2,707,402 2,708,998 2,699,869 2,594,373 17,284 0.6 130,313 5.0financing

Totalcommercialloan and 23,909,253 24,536,467 24,522,845 23,276,341 22,281,686 (627,214 ) (2.6) 1,627,567 7.3leaseportfolio

Residential 5,790,251 6,123,118 6,435,314 6,179,805 6,057,404 (332,867 ) (5.4) (267,153 ) (4.4)mortgage

Home equity 3,302,983 3,445,584 3,453,502 3,498,907 3,609,410 (142,601 ) (4.1) (306,427 ) (8.5)

Consumer 1,341,204 1,430,655 1,509,953 1,542,411 1,562,252 (89,451 ) (6.3) (221,048 ) (14.1)installment

Totalconsumer 10,434,438 10,999,357 11,398,769 11,221,123 11,229,066 (564,919 ) (5.1) (794,628 ) (7.1)loanportfolio

Total $ 34,343,691 $ 35,535,824 $ 35,921,614 $ 34,497,464 $ 33,510,752 $ (1,192,133 ) (3.4) $ 832,939 2.5% %

Composition of Deposits (Unaudited)

Quarter Ended

Change From

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30, 2020

Sep 30, 2019

(Dollars in thousands)

2020

2020

2020

2019

2019

$

%

$

%

Noninterest-bearing deposits

$

10,691,041

$

10,480,245

$

8,237,916

$

7,970,590

$

7,979,900

$

210,796

2.0%

$

2,711,141

34.0

%

Interest-bearing deposits:

Savings

9,295,467

9,310,362

8,703,864

8,506,058

8,347,541

(14,895

)

(0.2)

947,926

11.4

Certificates of deposit

6,334,760

7,142,996

7,463,192

7,455,556

8,385,972

(808,236

)

(11.3)

(2,051,212

)

(24.5

)

Checking

7,453,504

6,693,092

6,289,046

5,966,178

6,266,740

760,412

11.4

1,186,764

18.9

Money market

5,397,325

5,584,177

5,105,285

4,570,081

4,305,921

(186,852

)

(3.3)

1,091,404

25.3

Total interest-bearing deposits

28,481,056

28,730,627

27,561,387

26,497,873

27,306,174

(249,571

)

(0.9)

1,174,882

4.3

Total deposits

$

39,172,097

$

39,210,872

$

35,799,303

$

34,468,463

$

35,286,074

$

(38,775

)

(0.1)%

$

3,886,023

11.0

%

Composition of Deposits (Unaudited)



Quarter Ended Change From

Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, 2020 Sep 30, 2019

(Dollars in thousands) 2020 2020 2020 2019 2019 $ % $ %

Noninterest-bearing $ 10,691,041 $ 10,480,245 $ 8,237,916 $ 7,970,590 $ 7,979,900 $ 210,796 2.0% $ 2,711,141 34.0 %deposits

Interest-bearing deposits:

Savings 9,295,467 9,310,362 8,703,864 8,506,058 8,347,541 (14,895 ) (0.2) 947,926 11.4

Certificates of deposit 6,334,760 7,142,996 7,463,192 7,455,556 8,385,972 (808,236 ) (11.3) (2,051,212 ) (24.5 )

Checking 7,453,504 6,693,092 6,289,046 5,966,178 6,266,740 760,412 11.4 1,186,764 18.9

Money market 5,397,325 5,584,177 5,105,285 4,570,081 4,305,921 (186,852 ) (3.3) 1,091,404 25.3

Total interest-bearing 28,481,056 28,730,627 27,561,387 26,497,873 27,306,174 (249,571 ) (0.9) 1,174,882 4.3 deposits

Total deposits $ 39,172,097 $ 39,210,872 $ 35,799,303 $ 34,468,463 $ 35,286,074 $ (38,775 ) (0.1)% $ 3,886,023 11.0 %

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data

Allowance for Credit Losses (Unaudited)

Sep. 30,

Jun. 30,

Mar. 31,

Jan. 1,

Dec. 31,

Sep. 30,

2020

2020

2020

2020

2019

2019

(Dollars in thousands)

Balance

Reserve Rate

Balance

Reserve Rate

Balance

Reserve Rate

Adjusted for adoption of CECL

Balance

Reserve Rate

Balance

Reserve Rate

Allowance for loan and lease losses

Commercial and industrial

$

145,814

1.26%

$

122,024

1.00%

$

117,507

0.95%

$

93,884

$

42,430

0.38%

$

39,974

0.37%

Commercial real estate

197,892

2.06

162,364

1.69

86,209

0.91

67,620

27,308

0.29

24,090

0.27

Lease financing

36,386

1.34

19,041

0.70

27,610

1.02

21,631

14,742

0.55

14,367

0.55

Residential mortgage

62,006

1.07

79,479

1.30

97,185

1.51

72,939

8,099

0.13

19,816

0.33

Home equity

49,003

1.48

56,824

1.65

57,694

1.67

47,003

17,795

0.51

21,112

0.58

Consumer installment

24,128

1.80

21,382

1.49

20,178

1.34

15,967

2,678

0.17

1,859

0.12

Total allowance for loan and lease losses

515,229

1.50

461,114

1.30

406,383

1.13

319,044

113,052

0.33

121,218

0.36

Reserve for unfunded lending commitments

34,129

42,788

22,188

18,235

3,528

3,461

Total allowance for credit losses

$

549,358

1.60%

$

503,902

1.42%

$

428,571

1.19%

$

337,279

$

116,580

0.34%

$

124,679

0.37%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data



Allowance for Credit Losses (Unaudited)



Sep. 30, Jun. 30, Mar. 31, Jan. 1, Dec. 31, Sep. 30,

2020 2020 2020 2020 2019 2019

(Dollars in Balance Reserve Balance Reserve Balance Reserve Adjusted for Balance Reserve Balance Reservethousands) Rate Rate Rate adoption of CECL Rate Rate

Allowancefor loan and leaselosses

Commercialand $ 145,814 1.26% $ 122,024 1.00% $ 117,507 0.95% $ 93,884 $ 42,430 0.38% $ 39,974 0.37%industrial

Commercial 197,892 2.06 162,364 1.69 86,209 0.91 67,620 27,308 0.29 24,090 0.27real estate

Lease 36,386 1.34 19,041 0.70 27,610 1.02 21,631 14,742 0.55 14,367 0.55financing

Residential 62,006 1.07 79,479 1.30 97,185 1.51 72,939 8,099 0.13 19,816 0.33mortgage

Home equity 49,003 1.48 56,824 1.65 57,694 1.67 47,003 17,795 0.51 21,112 0.58

Consumer 24,128 1.80 21,382 1.49 20,178 1.34 15,967 2,678 0.17 1,859 0.12installment

Totalallowancefor loan 515,229 1.50 461,114 1.30 406,383 1.13 319,044 113,052 0.33 121,218 0.36and leaselosses

Reserve forunfunded 34,129 42,788 22,188 18,235 3,528 3,461 lendingcommitments

Totalallowance $ 549,358 1.60% $ 503,902 1.42% $ 428,571 1.19% $ 337,279 $ 116,580 0.34% $ 124,679 0.37%for creditlosses

Changes in Allowance for Credit Losses

Quarter Ended

Change From

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

(Dollars in thousands)

2020

2020

2020

2019

2019

2020

2019

Allowance for loan and lease losses

Balance, beginning of period

$

461,114

$

406,383

$

113,052

$

121,218

$

146,503

$

54,731

$

314,611

Impact of CECL adoption

-

-

205,992

-

-

-

-

Adjusted balance, beginning of period

461,114

406,383

319,044

121,218

146,503

54,731

314,611

Charge-offs

(32,235

)

(9,958

)

(14,729

)

(16,891

)

(35,547

)

(22,277

)

3,312

Recoveries

7,659

6,563

9,252

10,654

6,969

1,096

690

Net (charge-offs) recoveries

(24,576

)

(3,395

)

(5,477

)

(6,237

)

(28,578

)

(21,181

)

4,002

Provision for credit losses related to loans and leases(1)

78,323

58,126

92,990

14,403

27,188

20,197

51,135

Other(2)

368

-

(174

)

(16,332

)

(23,895

)

368

24,263

Balance, end of period

515,229

461,114

406,383

113,052

121,218

54,115

394,011

Reserve for unfunded lending commitments

Balance, beginning of period

42,788

22,188

3,528

3,461

1,936

20,600

40,852

Impact of CECL adoption

-

-

14,707

-

-

-

-

Adjusted balance, beginning of period

42,788

22,188

18,235

3,461

1,936

20,600

40,852

Provision (benefit) for credit losses related to unfunded lending commitments(1)

(8,659

)

20,600

3,953

67

(342

)

(29,259

)

(8,317

)

Addition due to merger

-

-

-

-

1,867

-

(1,867

)

Balance, end of period

34,129

42,788

22,188

3,528

3,461

(8,659

)

30,668

Total allowance for credit losses

$

549,358

$

503,902

$

428,571

$

116,580

$

124,679

$

45,456

$

424,679

Changes in Allowance for Credit Losses



Quarter Ended Change From

Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Sep. 30,

(Dollars in 2020 2020 2020 2019 2019 2020 2019thousands)

Allowance forloan and lease losses

Balance,beginning of $ 461,114 $ 406,383 $ 113,052 $ 121,218 $ 146,503 $ 54,731 $ 314,611 period

Impact of - - 205,992 - - - - CECL adoption

Adjustedbalance, 461,114 406,383 319,044 121,218 146,503 54,731 314,611 beginning ofperiod

Charge-offs (32,235 ) (9,958 ) (14,729 ) (16,891 ) (35,547 ) (22,277 ) 3,312

Recoveries 7,659 6,563 9,252 10,654 6,969 1,096 690

Net(charge-offs) (24,576 ) (3,395 ) (5,477 ) (6,237 ) (28,578 ) (21,181 ) 4,002 recoveries

Provision forcredit lossesrelated to 78,323 58,126 92,990 14,403 27,188 20,197 51,135 loans andleases^(1)

Other^(2) 368 - (174 ) (16,332 ) (23,895 ) 368 24,263

Balance, end 515,229 461,114 406,383 113,052 121,218 54,115 394,011 of period

Reserve forunfunded lendingcommitments

Balance,beginning of 42,788 22,188 3,528 3,461 1,936 20,600 40,852 period

Impact of - - 14,707 - - - - CECL adoption

Adjustedbalance, 42,788 22,188 18,235 3,461 1,936 20,600 40,852 beginning ofperiod

Provision(benefit) forcredit lossesrelated to (8,659 ) 20,600 3,953 67 (342 ) (29,259 ) (8,317 )unfundedlendingcommitments^(1)

Addition due - - - - 1,867 - (1,867 )to merger

Balance, end 34,129 42,788 22,188 3,528 3,461 (8,659 ) 30,668 of period

Totalallowance for $ 549,358 $ 503,902 $ 428,571 $ 116,580 $ 124,679 $ 45,456 $ 424,679 credit losses

(1)

Provision for credit losses related to loans and leases and the provision (benefit) for credit losses related to unfunded lending commitments are included within provision for credit losses in the Consolidated Statements of Income beginning January 1, 2020 as a result of the adoption of CECL.

(2)

Primarily includes the transfer of the allowance for credit losses to loans and leases held-for-sale.

Provision for credit losses related to loans and leases and the provision(1) (benefit) for credit losses related to unfunded lending commitments are included within provision for credit losses in the Consolidated Statements of Income beginning January 1, 2020 as a result of the adoption of CECL.

(2) Primarily includes the transfer of the allowance for credit losses to loans and leases held-for-sale.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data (Unaudited), Continued

Net (Charge-offs) Recoveries

Quarter Ended

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

2020

2020

2020

2019

2019

(Dollars in thousands)

Balance

Rate(1)

Balance

Rate(1)

Balance

Rate(1)

Balance

Rate(1)

Balance

Rate(1)

Commercial and industrial

$

(22,201

)

0.76

%

$

9

-

%

$

(4,022

)

0.14

%

$

(5,736

)

0.21

%

$

(17,631

)

0.76

%

Commercial real estate

(144

)

0.01

(644

)

0.03

563

(0.02

)

(7

)

-

13

-

Lease financing

(161

)

0.02

(1,392

)

0.21

(878

)

0.13

(1,749

)

0.27

(2,192

)

0.34

Residential mortgage

803

(0.05

)

(871

)

0.06

355

(0.02

)

1,552

(0.10

)

(189

)

0.02

Home equity

(237

)

0.03

(335

)

0.04

(246

)

0.03

2,280

(0.25

)

405

(0.05

)

Consumer installment

(2,636

)

0.76

(162

)

0.04

(1,249

)

0.33

(2,577

)

0.67

(8,984

)

1.50

Total net (charge-offs) recoveries

$

(24,576

)

0.28

%

$

(3,395

)

0.04

%

$

(5,477

)

0.06

%

$

(6,237

)

0.07

%

$

(28,578

)

0.39

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data (Unaudited), Continued



Net (Charge-offs) Recoveries



Quarter Ended

Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,

2020 2020 2020 2019 2019

(Dollars in thousands) Balance Rate^ Balance Rate^ Balance Rate^ Balance Rate^ Balance Rate^ (1) (1) (1) (1) (1)

Commercial and industrial $ (22,201 ) 0.76 % $ 9 - % $ (4,022 ) 0.14 % $ (5,736 ) 0.21 % $ (17,631 ) 0.76 %

Commercial real estate (144 ) 0.01 (644 ) 0.03 563 (0.02 ) (7 ) - 13 -

Lease financing (161 ) 0.02 (1,392 ) 0.21 (878 ) 0.13 (1,749 ) 0.27 (2,192 ) 0.34

Residential mortgage 803 (0.05 ) (871 ) 0.06 355 (0.02 ) 1,552 (0.10 ) (189 ) 0.02

Home equity (237 ) 0.03 (335 ) 0.04 (246 ) 0.03 2,280 (0.25 ) 405 (0.05 )

Consumer installment (2,636 ) 0.76 (162 ) 0.04 (1,249 ) 0.33 (2,577 ) 0.67 (8,984 ) 1.50

Total net (charge-offs) $ (24,576 ) 0.28 % $ (3,395 ) 0.04 % $ (5,477 ) 0.06 % $ (6,237 ) 0.07 % $ (28,578 ) 0.39 %recoveries

(1)

Annualized net charge-off rate based on average loans and leases.

(1) Annualized net charge-off rate based on average loans and leases.

Over 90-Day Delinquencies as a Percentage of Portfolio(1)

Change From

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2020

2020

2020

2019

2019

2020

2019

Commercial and industrial

0.03

%

0.02

%

-

%

-

%

0.02

%

1

bps

1

bps

Commercial real estate

-

-

0.02

0.02

0.09

-

(9

)

Lease financing

0.13

0.18

0.11

0.07

0.09

(5

)

4

Residential mortgage

0.02

0.01

0.01

0.01

0.01

1

1

Home equity

-

-

0.01

-

-

-

-

Consumer installment

-

-

-

0.01

-

-

-

Subtotal

0.02

0.02

0.02

0.01

0.04

-

(2

)

Portfolios acquired with deteriorated credit quality(2)

N/A

N/A

N/A

10.43

5.47

N/A

N/A

Total delinquencies

0.02

%

0.02

%

0.02

%

0.09

%

0.09

%

-

(7

)

Over 90-Day Delinquencies as a Percentage of Portfolio^(1)

Change From

Sep. Jun. Mar. Dec. Sep. Jun. 30, Sep. 30, 30, 30, 31, 31, 30,

2020 2020 2020 2019 2019 2020 2019

Commercial and 0.03 % 0.02 % - % - % 0.02 % 1 bps 1 bpsindustrial

Commercial real - - 0.02 0.02 0.09 - (9 ) estate

Lease financing 0.13 0.18 0.11 0.07 0.09 (5 ) 4

Residential 0.02 0.01 0.01 0.01 0.01 1 1 mortgage

Home equity - - 0.01 - - - -

Consumer - - - 0.01 - - - installment

Subtotal 0.02 0.02 0.02 0.01 0.04 - (2 )

Portfoliosacquired withdeteriorated N/A N/A N/A 10.43 5.47 N/A N/A credit quality^(2)

Total 0.02 % 0.02 % 0.02 % 0.09 % 0.09 % - (7 ) delinquencies

(1)

Excludes nonaccrual loans and leases.

(2)

Prior to the adoption of CECL as of January 1, 2020, purchased credit impaired loans were not classified as nonaccrual loans because they were recorded at their net realizable value based on the principal and interest expected to be collected on the loans.

(1) Excludes nonaccrual loans and leases.

Prior to the adoption of CECL as of January 1, 2020, purchased credit(2) impaired loans were not classified as nonaccrual loans because they were recorded at their net realizable value based on the principal and interest expected to be collected on the loans.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data (Unaudited), Continued

Nonperforming Assets

Change From

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

(Dollars in thousands)

2020

2020

2020

2019

2019

2020

2019

Nonaccrual loans and leases:

Commercial and industrial

$

140,492

$

98,184

$

84,157

$

53,812

$

55,039

$

42,308

$

85,453

Commercial real estate

70,252

57,521

47,032

29,735

26,518

12,731

43,734

Lease financing

42,023

18,756

13,170

10,957

11,503

23,267

30,520

Residential mortgage

65,235

67,762

61,980

38,577

48,816

(2,527

)

16,419

Home equity

52,184

47,560

43,147

35,863

39,296

4,624

12,888

Consumer installment

6,535

1,668

989

714

636

4,867

5,899

Total nonaccrual loans and leases(1)

376,721

291,451

250,475

169,658

181,808

85,270

194,913

Other real estate owned

35,554

42,744

38,914

34,256

27,638

(7,190

)

7,916

Total nonperforming assets

$

412,275

$

334,195

$

289,389

$

203,914

$

209,446

$

78,080

$

202,829

Nonaccrual loans and leases as a percentage of total loans and leases(1)

1.10

%

0.82

%

0.70

%

0.49

%

0.54

%

28

bps

56

bps

Allowance for loan and lease losses as a percentage of nonaccrual loans and leases(1)

136.77

158.21

162.24

66.64

66.67

(2,144

)

7,010

Allowance for credit losses as a percentage of nonaccrual loans and leases(1)

145.83

172.89

171.10

68.71

68.58

(2,706

)

7,725

Nonperforming assets as a percentage of total loans and leases and other real estate owned(1)

1.20

0.94

0.80

0.59

0.62

26

58

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data (Unaudited), Continued



Nonperforming Assets

Change From

Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Sep. 30,

(Dollars in 2020 2020 2020 2019 2019 2020 2019thousands)

Nonaccrualloans and leases:

Commercialand $ 140,492 $ 98,184 $ 84,157 $ 53,812 $ 55,039 $ 42,308 $ 85,453 industrial

Commercial 70,252 57,521 47,032 29,735 26,518 12,731 43,734 real estate

Lease 42,023 18,756 13,170 10,957 11,503 23,267 30,520 financing

Residential 65,235 67,762 61,980 38,577 48,816 (2,527 ) 16,419 mortgage

Home equity 52,184 47,560 43,147 35,863 39,296 4,624 12,888

Consumer 6,535 1,668 989 714 636 4,867 5,899 installment

Totalnonaccrual 376,721 291,451 250,475 169,658 181,808 85,270 194,913 loans andleases^(1)

Other real 35,554 42,744 38,914 34,256 27,638 (7,190 ) 7,916 estate owned

Totalnonperforming $ 412,275 $ 334,195 $ 289,389 $ 203,914 $ 209,446 $ 78,080 $ 202,829 assets



Nonaccrualloans andleases as apercentage of 1.10 % 0.82 % 0.70 % 0.49 % 0.54 % 28 bps 56 bpstotal loansand leases^(1)

Allowance forloan andlease lossesas a 136.77 158.21 162.24 66.64 66.67 (2,144 ) 7,010 percentage ofnonaccrualloans andleases^(1)

Allowance forcredit lossesas apercentage of 145.83 172.89 171.10 68.71 68.58 (2,706 ) 7,725 nonaccrualloans andleases^(1)

Nonperformingassets as apercentage oftotal loans 1.20 0.94 0.80 0.59 0.62 26 58 and leasesand otherreal estateowned^(1)

(1)

Prior to the adoption of CECL as of January 1, 2020, purchased credit impaired loans were not classified as nonaccrual loans because they were recorded at their net realizable value based on the principal and interest expected to be collected on the loans. At January 1, 2020, $73.4 million of previous purchased credit impaired loans were reclassified to nonaccrual loans as a result of the adoption of CECL.

Prior to the adoption of CECL as of January 1, 2020, purchased credit impaired loans were not classified as nonaccrual loans because they were(1) recorded at their net realizable value based on the principal and interest expected to be collected on the loans. At January 1, 2020, $73.4 million of previous purchased credit impaired loans were reclassified to nonaccrual loans as a result of the adoption of CECL.

Consolidated Capital Information (Unaudited)

Change From

(Dollars in thousands, except per share data)

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2020

2020

2020

2019

2019

2020

2019

Dividends declared per common share

$

0.35

$

0.35

$

0.35

$

0.35

$

0.35

0.0

%

0.0

%

Book value per common share

35.88

35.91

35.85

36.20

35.82

(0.1)

0.2

Tangible book value per common share(1)

26.27

26.25

26.16

26.60

26.18

0.1

0.3

Common equity to assets

11.50

%

10.92

%

11.23

%

11.87

%

12.04

%

58

bps

(54)

bps

Tangible common equity to tangible assets(1)

8.68

8.22

8.45

9.01

9.09

46

(41)

Regulatory Capital:(2)

Common equity Tier 1 capital

$

4,053,931

$

4,028,681

$

4,026,304

$

4,050,826

$

4,009,214

0.6

%

1.1

%

Tier 1 capital

4,244,609

4,221,283

4,225,755

4,236,648

4,197,706

0.6

1.1

Total capital

4,972,715

4,907,760

4,744,899

4,681,630

4,652,708

1.3

6.9

Common equity Tier 1 capital ratio

11.45

%

11.06

%

10.44

%

10.99

%

10.88

%

39

bps

57

bps

Tier 1 risk-based capital ratio

11.98

11.59

10.96

11.49

11.40

39

58

Total risk-based capital ratio

14.04

13.47

12.31

12.70

12.63

57

141

Tier 1 leverage ratio

8.83

8.75

9.27

9.49

11.16

8

(233)

Consolidated Capital Information (Unaudited)

Change From

(Dollarsin Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Sep. 30,thousands,except persharedata) 2020 2020 2020 2019 2019 2020 2019

Dividendsdeclared $ 0.35 $ 0.35 $ 0.35 $ 0.35 $ 0.35 0.0 % 0.0 %per commonshare

Book valueper common 35.88 35.91 35.85 36.20 35.82 (0.1) 0.2 share

Tangiblebook value 26.27 26.25 26.16 26.60 26.18 0.1 0.3 per commonshare^(1)

Commonequity to 11.50 % 10.92 % 11.23 % 11.87 % 12.04 % 58 bps (54) bpsassets

Tangiblecommonequity to 8.68 8.22 8.45 9.01 9.09 46 (41) tangibleassets^(1)



RegulatoryCapital:^ (2)

Commonequity $ 4,053,931 $ 4,028,681 $ 4,026,304 $ 4,050,826 $ 4,009,214 0.6 % 1.1 %Tier 1capital

Tier 1 4,244,609 4,221,283 4,225,755 4,236,648 4,197,706 0.6 1.1 capital

Total 4,972,715 4,907,760 4,744,899 4,681,630 4,652,708 1.3 6.9 capital



CommonequityTier 1 11.45 % 11.06 % 10.44 % 10.99 % 10.88 % 39 bps 57 bpscapitalratio

Tier 1risk-based 11.98 11.59 10.96 11.49 11.40 39 58 capitalratio

Totalrisk-based 14.04 13.47 12.31 12.70 12.63 57 141 capitalratio

Tier 1leverage 8.83 8.75 9.27 9.49 11.16 8 (233) ratio

(1)

See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.

(2)

September 30, 2020 amounts are preliminary pending completion and filing of the Corporation's regulatory reports. Regulatory capital ratios presented for periods in 2020 reflect our election of the five-year CECL transition for regulatory capital purposes.

(1) See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.

September 30, 2020 amounts are preliminary pending completion and filing(2) of the Corporation's regulatory reports. Regulatory capital ratios presented for periods in 2020 reflect our election of the five-year CECL transition for regulatory capital purposes.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)

Computation of adjusted diluted earnings per common share and adjusted net income:

Quarter Ended

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

(Dollars in thousands, except per share data)

2020

2020

2020

2019

2019

Net income available to common shareholders

(a)

$

53,244

$

21,270

$

49,406

$

109,905

$

19,654

Merger-related expenses

54,011

81,619

36,728

47,025

111,259

Notable items:

Sale of legacy TCF auto finance portfolio and related expenses(1)

-

901

3,063

12,864

19,264

Termination of interest rate swaps(2)

-

-

-

-

17,302

Gain on sale of certain investment securities(3)

-

-

-

-

(5,869

)

Gains on sales of branches, write-down of company-owned vacant land parcels and branch exit costs, net(4)

-

(14,166

)

-

3,494

5,890

Pension fair valuation adjustment(5)

-

-

-

6,341

-

Loan servicing rights (recovery) impairment(2)

154

8,858

8,236

(638

)

4,520

Total notable items

154

(4,407

)

11,299

22,061

41,107

Total merger-related and notable items

54,165

77,212

48,027

69,086

152,366

Related income tax expense, net of benefits(6)

(11,207

)

(16,114

)

(10,071

)

(19,904

)

(46,213

)

Total adjustments, net of tax

42,958

61,098

37,956

49,182

106,153

Adjusted earnings allocated to common stock

(b)

$

96,202

$

82,368

$

87,362

$

159,087

$

125,807

Weighted-average common shares outstanding used in diluted earnings per common share calculation(7)

(c)

151,821,592

151,660,139

152,114,017

152,658,766

128,754,588

Diluted earnings per common share

(a)/(c)

$

0.35

$

0.14

$

0.32

$

0.72

$

0.15

Adjusted diluted earnings per common share

(b)/(c)

0.63

0.54

0.57

1.04

0.98

Net income attributable to TCF

$

55,738

$

23,764

$

51,899

$

112,399

$

22,148

Total adjustments, net of tax

42,958

61,098

37,956

49,182

106,153

Adjusted net income attributable to TCF

$

98,696

$

84,862

$

89,855

$

161,581

$

128,301

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)



Computation of adjusted diluted earnings per common share and adjusted netincome:



Quarter Ended

Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,

(Dollars inthousands, 2020 2020 2020 2019 2019except per sharedata)

Net incomeavailable to (a) $ 53,244 $ 21,270 $ 49,406 $ 109,905 $ 19,654 commonshareholders

Merger-related 54,011 81,619 36,728 47,025 111,259 expenses

Notable items:

Sale of legacyTCF auto financeportfolio and - 901 3,063 12,864 19,264 related expenses^(1)

Termination ofinterest rate - - - - 17,302 swaps^(2)

Gain on sale ofcertain - - - - (5,869 )investmentsecurities^(3)

Gains on salesof branches,write-down ofcompany-owned - (14,166 ) - 3,494 5,890 vacant landparcels andbranch exitcosts, net^(4)

Pension fairvaluation - - - 6,341 - adjustment^(5)

Loan servicingrights 154 8,858 8,236 (638 ) 4,520 (recovery)impairment^(2)

Total notable 154 (4,407 ) 11,299 22,061 41,107 items

Totalmerger-related 54,165 77,212 48,027 69,086 152,366 and notableitems

Related incometax expense, net (11,207 ) (16,114 ) (10,071 ) (19,904 ) (46,213 )of benefits^(6)

Totaladjustments, net 42,958 61,098 37,956 49,182 106,153 of tax

Adjustedearnings (b) $ 96,202 $ 82,368 $ 87,362 $ 159,087 $ 125,807 allocated tocommon stock



Weighted-averagecommon sharesoutstanding usedin diluted (c) 151,821,592 151,660,139 152,114,017 152,658,766 128,754,588 earnings percommon sharecalculation^(7)



Diluted earnings (a)per common share / $ 0.35 $ 0.14 $ 0.32 $ 0.72 $ 0.15 (c)

Adjusted diluted (b)earnings per / 0.63 0.54 0.57 1.04 0.98 common share (c)



Net incomeattributable to $ 55,738 $ 23,764 $ 51,899 $ 112,399 $ 22,148 TCF

Totaladjustments, net 42,958 61,098 37,956 49,182 106,153 of tax

Adjusted netincome $ 98,696 $ 84,862 $ 89,855 $ 161,581 $ 128,301 attributable toTCF

(1)

Second quarter 2020 amount included within other noninterest expense ($0.8 million) and compensation and employee benefits ($0.1 million). First quarter 2020 amount included within occupancy and equipment ($1.6 million), compensation and employee benefits ($0.9 million) and other noninterest expense ($0.6 million). Fourth quarter 2019 amount included within net gains (losses) on sales of loans and leases ($8.2 million), other noninterest expense ($2.2 million), occupancy and equipment ($1.5 million) and compensation and employee benefits ($0.9 million). Third quarter 2019 amount included within net gains (losses) on sales of loans and leases.

(2)

Included within other noninterest income.

(3)

Included within net gains on investment securities.

(4)

Second quarter 2020 amount included within other noninterest income ($14.7 million net gain) and other noninterest expense ($0.6 million). Fourth quarter of 2019 and third quarter of 2019 included within other noninterest expense.

(5)

Included within other noninterest expense.

(6)

Included within income tax expense (benefit).

(7)

Assumes conversion of common shares, as applicable.

Second quarter 2020 amount included within other noninterest expense ($0.8 million) and compensation and employee benefits ($0.1 million). First quarter 2020 amount included within occupancy and equipment ($1.6 million), compensation and employee benefits ($0.9 million) and other(1) noninterest expense ($0.6 million). Fourth quarter 2019 amount included within net gains (losses) on sales of loans and leases ($8.2 million), other noninterest expense ($2.2 million), occupancy and equipment ($1.5 million) and compensation and employee benefits ($0.9 million). Third quarter 2019 amount included within net gains (losses) on sales of loans and leases.

(2) Included within other noninterest income.

(3) Included within net gains on investment securities.

Second quarter 2020 amount included within other noninterest income ($14.7(4) million net gain) and other noninterest expense ($0.6 million). Fourth quarter of 2019 and third quarter of 2019 included within other noninterest expense.

(5) Included within other noninterest expense.

(6) Included within income tax expense (benefit).

(7) Assumes conversion of common shares, as applicable.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued

Computation of adjusted return on average assets, common equity and average tangible common equity:

Quarter Ended

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

(Dollars in thousands)

2020

2020

2020

2019

2019

Adjusted net income after tax expense:

Income after tax expense

(a)

$

57,302

$

26,233

$

53,816

$

114,456

$

24,978

Merger-related expenses

54,011

81,619

36,728

47,025

111,259

Notable items

154

(4,407

)

11,299

22,061

41,107

Related income tax expense, net of tax benefits

(11,207

)

(16,114

)

(10,071

)

(19,904

)

(46,213

)

Adjusted net income after tax expense for ROAA calculation

(b)

100,260

87,331

91,772

163,638

131,131

Net income available to common shareholders

(c)

53,244

21,270

49,406

109,905

19,654

Other intangibles amortization

5,498

5,516

5,480

5,505

4,544

Related income tax expense

(1,137

)

(1,151

)

(1,149

)

(1,284

)

(1,085

)

Net income available to common shareholders used in ROATCE calculation

(d)

57,605

25,635

53,737

114,126

23,113

Adjusted net income available to common shareholders:

Net income available to common shareholders

53,244

21,270

49,406

109,905

19,654

Notable items

154

(4,407

)

11,299

22,061

41,107

Merger-related expenses

54,011

81,619

36,728

47,025

111,259

Related income tax expense, net of tax benefits

(11,207

)

(16,114

)

(10,071

)

(19,904

)

(46,213

)

Net income available to common shareholders used in adjusted ROACE calculation

(e)

96,202

82,368

87,362

159,087

125,807

Other intangibles amortization

5,498

5,516

5,480

5,505

4,544

Related income tax expense

(1,137

)

(1,151

)

(1,149

)

(1,284

)

(1,085

)

Net income available to common shareholders used in adjusted ROATCE calculation

(f)

100,563

86,733

91,693

163,308

129,266

Average balances:

Average assets

(g)

49,539,600

49,716,116

46,985,426

46,119,514

39,094,366

Total equity

5,697,727

5,658,255

5,630,487

5,691,119

4,683,129

Non-controlling interest in subsidiaries

(22,638

)

(28,122

)

(25,328

)

(23,683

)

(25,516

)

Total TCF Financial Corporation shareholders' equity

5,675,089

5,630,133

5,605,159

5,667,436

4,657,613

Preferred stock

(169,302

)

(169,302

)

(169,302

)

(169,302

)

(169,302

)

Average total common shareholders' equity used in ROACE calculation

(h)

5,505,787

5,460,831

5,435,857

5,498,134

4,488,311

Goodwill, net

(1,313,046

)

(1,313,046

)

(1,301,080

)

(1,266,166

)

(890,155

)

Other intangibles, net

(155,142

)

(160,841

)

(166,298

)

(211,294

)

(142,925

)

Average tangible common shareholders' equity used in ROATCE calculation

(i)

$

4,037,599

$

3,986,944

$

3,968,479

$

4,020,674

$

3,455,231

ROAA(1)

(a)/(g)

0.46

%

0.21

%

0.46

%

0.99

%

0.26

%

Adjusted ROAA(1)

(b)/(g)

0.81

0.70

0.78

1.42

1.34

ROACE(1)

(c)/(h)

3.87

1.56

3.64

8.00

1.75

Adjusted ROACE(1)

(e)/(h)

6.99

6.03

6.43

11.57

11.21

ROATCE(1)

(d)/(i)

5.71

2.57

5.42

11.35

2.68

Adjusted ROATCE(1)

(f)/(i)

9.96

8.70

9.24

16.25

14.96

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued



Computation of adjusted return on average assets, common equity and averagetangible common equity:



Quarter Ended

Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,

(Dollars in 2020 2020 2020 2019 2019thousands)

Adjusted netincome after tax expense:

Income after (a) $ 57,302 $ 26,233 $ 53,816 $ 114,456 $ 24,978 tax expense

Merger-related 54,011 81,619 36,728 47,025 111,259 expenses

Notable items 154 (4,407 ) 11,299 22,061 41,107

Related incometax expense, (11,207 ) (16,114 ) (10,071 ) (19,904 ) (46,213 )net of taxbenefits

Adjusted netincome aftertax expense for (b) 100,260 87,331 91,772 163,638 131,131 ROAAcalculation

Net incomeavailable to (c) 53,244 21,270 49,406 109,905 19,654 commonshareholders

Otherintangibles 5,498 5,516 5,480 5,505 4,544 amortization

Related income (1,137 ) (1,151 ) (1,149 ) (1,284 ) (1,085 )tax expense

Net incomeavailable tocommon (d) 57,605 25,635 53,737 114,126 23,113 shareholdersused in ROATCEcalculation



Adjusted netincomeavailable to commonshareholders:

Net incomeavailable to 53,244 21,270 49,406 109,905 19,654 commonshareholders

Notable items 154 (4,407 ) 11,299 22,061 41,107

Merger-related 54,011 81,619 36,728 47,025 111,259 expenses

Related incometax expense, (11,207 ) (16,114 ) (10,071 ) (19,904 ) (46,213 )net of taxbenefits

Net incomeavailable tocommonshareholders (e) 96,202 82,368 87,362 159,087 125,807 used inadjusted ROACEcalculation

Otherintangibles 5,498 5,516 5,480 5,505 4,544 amortization

Related income (1,137 ) (1,151 ) (1,149 ) (1,284 ) (1,085 )tax expense

Net incomeavailable tocommonshareholders (f) 100,563 86,733 91,693 163,308 129,266 used inadjusted ROATCEcalculation

Average balances:

Average assets (g) 49,539,600 49,716,116 46,985,426 46,119,514 39,094,366

Total equity 5,697,727 5,658,255 5,630,487 5,691,119 4,683,129

Non-controllinginterest in (22,638 ) (28,122 ) (25,328 ) (23,683 ) (25,516 )subsidiaries

Total TCFFinancialCorporation 5,675,089 5,630,133 5,605,159 5,667,436 4,657,613 shareholders'equity

Preferred stock (169,302 ) (169,302 ) (169,302 ) (169,302 ) (169,302 )

Average totalcommonshareholders' (h) 5,505,787 5,460,831 5,435,857 5,498,134 4,488,311 equity used inROACEcalculation

Goodwill, net (1,313,046 ) (1,313,046 ) (1,301,080 ) (1,266,166 ) (890,155 )

Otherintangibles, (155,142 ) (160,841 ) (166,298 ) (211,294 ) (142,925 )net

Averagetangible commonshareholders' (i) $ 4,037,599 $ 3,986,944 $ 3,968,479 $ 4,020,674 $ 3,455,231 equity used inROATCEcalculation



(a)ROAA^(1) / 0.46 % 0.21 % 0.46 % 0.99 % 0.26 % (g)

Adjusted ROAA^ (b)(1) / 0.81 0.70 0.78 1.42 1.34 (g)

(c)ROACE^(1) / 3.87 1.56 3.64 8.00 1.75 (h)

Adjusted ROACE^ (e)(1) / 6.99 6.03 6.43 11.57 11.21 (h)

(d)ROATCE^(1) / 5.71 2.57 5.42 11.35 2.68 (i)

Adjusted ROATCE (f)^(1) / 9.96 8.70 9.24 16.25 14.96 (i)

(1)

Annualized.

(1) Annualized.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued

Computation of adjusted efficiency ratio, noninterest income and noninterest expense:

Quarter Ended

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

(Dollars in thousands)

2020

2020

2020

2019

2019

Noninterest expense

(a)

$

373,440

$

400,241

$

374,599

$

416,571

$

425,620

Merger-related expenses

(54,011

)

(81,619

)

(36,728

)

(47,025

)

(111,259

)

Write-down of company-owned vacant land parcels and branch exit costs

-

(551

)

-

(3,494

)

(5,890

)

Expenses related to the sale of Legacy TCF auto finance portfolio

-

(901

)

(3,063

)

(4,670

)

-

Pension fair valuation adjustment

-

-

-

(6,341

)

-

Adjusted noninterest expense

319,429

317,170

334,808

355,041

308,471

Lease financing equipment depreciation

(17,932

)

(18,212

)

(18,450

)

(18,629

)

(19,408

)

Amortization of intangibles

(5,498

)

(5,516

)

(5,480

)

(5,505

)

(4,544

)

Federal historic tax credit amortization

(1,758

)

(179

)

(1,521

)

(4,030

)

-

Adjusted noninterest expense, efficiency ratio

(b)

294,241

293,263

309,357

326,877

284,519

Net interest income

377,167

378,359

401,481

408,753

371,793

Noninterest income

118,810

133,054

136,963

158,052

94,258

Total revenue

(c)

495,977

511,413

538,444

566,805

466,051

Noninterest income

118,810

133,054

136,963

158,052

94,258

Gain on sales of branches

-

(14,717

)

-

-

-

Sale of Legacy TCF auto finance portfolio

-

-

-

8,194

19,264

Termination of interest rate swaps

-

-

-

-

17,302

Gain on sales of certain investment securities

-

-

-

-

(5,869

)

Loan servicing rights impairment (recovery)

154

8,858

8,236

(638

)

4,520

Adjusted noninterest income

118,964

127,195

145,199

165,608

129,475

Net interest income

377,167

378,359

401,481

408,753

371,793

Net interest income FTE adjustment

2,842

3,032

2,983

2,896

2,488

Adjusted net interest income (FTE)

380,009

381,391

404,464

411,649

374,281

Lease financing equipment depreciation

(17,932

)

(18,212

)

(18,450

)

(18,629

)

(19,408

)

Adjusted total revenue, efficiency ratio

(d)

$

481,041

$

490,374

$

531,213

$

558,628

$

484,348

Efficiency ratio

(a)/(c)

75.29

%

78.26

%

69.57

%

73.49

%

91.32

%

Adjusted efficiency ratio

(b)/(d)

61.17

59.80

58.24

58.51

58.74

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued



Computation of adjusted efficiency ratio, noninterest income and noninterestexpense:



Quarter Ended

Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,

(Dollars in 2020 2020 2020 2019 2019thousands)

Noninterest (a) $ 373,440 $ 400,241 $ 374,599 $ 416,571 $ 425,620 expense

Merger-related (54,011 ) (81,619 ) (36,728 ) (47,025 ) (111,259 )expenses

Write-down ofcompany-ownedvacant land - (551 ) - (3,494 ) (5,890 )parcels andbranch exitcosts

Expensesrelated to thesale of Legacy - (901 ) (3,063 ) (4,670 ) - TCF autofinanceportfolio

Pension fairvaluation - - - (6,341 ) - adjustment

Adjustednoninterest 319,429 317,170 334,808 355,041 308,471 expense

Leasefinancing (17,932 ) (18,212 ) (18,450 ) (18,629 ) (19,408 )equipmentdepreciation

Amortization (5,498 ) (5,516 ) (5,480 ) (5,505 ) (4,544 )of intangibles

Federalhistoric tax (1,758 ) (179 ) (1,521 ) (4,030 ) - creditamortization

Adjustednoninterestexpense, (b) 294,241 293,263 309,357 326,877 284,519 efficiencyratio



Net interest 377,167 378,359 401,481 408,753 371,793 income

Noninterest 118,810 133,054 136,963 158,052 94,258 income

Total revenue (c) 495,977 511,413 538,444 566,805 466,051



Noninterest 118,810 133,054 136,963 158,052 94,258 income

Gain on sales - (14,717 ) - - - of branches

Sale of LegacyTCF auto - - - 8,194 19,264 financeportfolio

Termination ofinterest rate - - - - 17,302 swaps

Gain on salesof certain - - - - (5,869 )investmentsecurities

Loan servicingrights 154 8,858 8,236 (638 ) 4,520 impairment(recovery)

Adjustednoninterest 118,964 127,195 145,199 165,608 129,475 income

Net interest 377,167 378,359 401,481 408,753 371,793 income

Net interestincome FTE 2,842 3,032 2,983 2,896 2,488 adjustment

Adjusted netinterest 380,009 381,391 404,464 411,649 374,281 income (FTE)

Leasefinancing (17,932 ) (18,212 ) (18,450 ) (18,629 ) (19,408 )equipmentdepreciation

Adjusted totalrevenue, (d) $ 481,041 $ 490,374 $ 531,213 $ 558,628 $ 484,348 efficiencyratio



Efficiency (a)ratio / 75.29 % 78.26 % 69.57 % 73.49 % 91.32 % (c)

Adjusted (b)efficiency / 61.17 59.80 58.24 58.51 58.74 ratio (d)

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued

Computation of adjusted net interest income and margin:

Quarter Ended

Sep. 30,

Jun. 30,

(Dollars in thousands)

2020

2020

Net Interest Income

$

377,167

$

378,359

Purchase accounting accretion and amortization

(17,710

)

(18,209

)

Adjusted net interest income, excluding purchase accounting accretion and amortization

$

359,457

$

360,150

Net fees recognized on PPP loans

(11,886

)

(7,805

)

Interest recognition on PPP loans(1)

(2,824

)

(1,759

)

Total PPP loans impact

(14,710

)

(9,564

)

Adjusted net interest income, excluding purchase accounting accretion and amortization and PPP impact

$

344,747

$

350,586

Net interest margin (FTE)

3.34

%

3.35

%

Purchase accounting accretion and amortization impact

(0.16

)

(0.16

)

Adjusted net interest margin, excluding purchase accounting accretion and amortization (FTE)

3.18

3.19

PPP loans impact(2)

0.01

0.01

Adjusted net interest margin, excluding purchase accounting accretion and amortization and PPP loans impact (FTE)

3.19

%

3.20

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued



Computation of adjusted net interest income and margin:



Quarter Ended

Sep. 30, Jun. 30,

(Dollars in thousands) 2020 2020

Net Interest Income $ 377,167 $ 378,359

Purchase accounting accretion and amortization (17,710 ) (18,209 )

Adjusted net interest income, excluding purchase $ 359,457 $ 360,150 accounting accretion and amortization

Net fees recognized on PPP loans (11,886 ) (7,805 )

Interest recognition on PPP loans^(1) (2,824 ) (1,759 )

Total PPP loans impact (14,710 ) (9,564 )

Adjusted net interest income, excluding purchase $ 344,747 $ 350,586 accounting accretion and amortization and PPP impact

Net interest margin (FTE) 3.34 % 3.35 %

Purchase accounting accretion and amortization impact (0.16 ) (0.16 )

Adjusted net interest margin, excluding purchase 3.18 3.19 accounting accretion and amortization (FTE)

PPP loans impact^(2) 0.01 0.01

Adjusted net interest margin, excluding purchaseaccounting accretion and amortization and PPP loans 3.19 % 3.20 %impact (FTE)

(1)

Interest income recorded on PPP loans less funding costs.

(2)

The exclusion of PPP loans additionally reduces average earning assets by $1.8 billion and $1.2 billion in the third and second quarters of 2020, respectively.

(1) Interest income recorded on PPP loans less funding costs.

The exclusion of PPP loans additionally reduces average earning assets by(2) $1.8 billion and $1.2 billion in the third and second quarters of 2020, respectively.

Computation of tangible common equity to tangible assets and tangible book value per common share:

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

(Dollars in thousands, except per share data)

2020

2020

2020

2019

2019

Total equity

$

5,658,420

$

5,658,555

$

5,655,833

$

5,727,241

$

5,693,417

Non-controlling interest in subsidiaries

(21,376

)

(23,300

)

(30,149

)

(20,226

)

(23,313

)

Total TCF Financial Corporation shareholders' equity

5,637,044

5,635,255

5,625,684

5,707,015

5,670,104

Preferred stock

(169,302

)

(169,302

)

(169,302

)

(169,302

)

(169,302

)

Total common stockholders' equity

(a)

5,467,742

5,465,953

5,456,382

5,537,713

5,500,802

Goodwill, net

(1,313,046

)

(1,313,046

)

(1,313,046

)

(1,299,878

)

(1,265,111

)

Other intangibles, net

(151,875

)

(157,373

)

(162,887

)

(168,368

)

(215,910

)

Tangible common shareholders' equity

(b)

4,002,821

3,995,534

3,980,449

4,069,467

4,019,781

Total assets

(c)

47,565,789

50,062,460

48,594,383

46,651,553

45,692,511

Goodwill, net

(1,313,046

)

(1,313,046

)

(1,313,046

)

(1,299,878

)

(1,265,111

)

Other intangibles, net

(151,875

)

(157,373

)

(162,887

)

(168,368

)

(215,910

)

Tangible assets

(d)

$

46,100,868

$

48,592,041

$

47,118,450

$

45,183,307

$

44,211,490

Common stock shares outstanding

(e)

152,379,722

152,233,106

152,185,984

152,965,571

153,571,381

Common equity to assets

(a) / (c)

11.50

%

10.92

%

11.23

%

11.87

%

12.04

%

Tangible common equity to tangible assets

(b) / (d)

8.68

8.22

8.45

9.01

9.09

Book value per common share

(a) / (e)

$

35.88

$

35.91

$

35.85

$

36.20

$

35.82

Tangible book value per common share

(b) / (e)

26.27

26.25

26.16

26.60

26.18

Computation of tangible common equity to tangible assets and tangible bookvalue per common share:



Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,

(Dollars inthousands, 2020 2020 2020 2019 2019except pershare data)

Total equity $ 5,658,420 $ 5,658,555 $ 5,655,833 $ 5,727,241 $ 5,693,417

Non-controllinginterest in (21,376 ) (23,300 ) (30,149 ) (20,226 ) (23,313 )subsidiaries

Total TCFFinancialCorporation 5,637,044 5,635,255 5,625,684 5,707,015 5,670,104 shareholders'equity

Preferred stock (169,302 ) (169,302 ) (169,302 ) (169,302 ) (169,302 )

Total commonstockholders' (a) 5,467,742 5,465,953 5,456,382 5,537,713 5,500,802 equity

Goodwill, net (1,313,046 ) (1,313,046 ) (1,313,046 ) (1,299,878 ) (1,265,111 )

Otherintangibles, (151,875 ) (157,373 ) (162,887 ) (168,368 ) (215,910 )net

Tangible commonshareholders' (b) 4,002,821 3,995,534 3,980,449 4,069,467 4,019,781 equity



Total assets (c) 47,565,789 50,062,460 48,594,383 46,651,553 45,692,511

Goodwill, net (1,313,046 ) (1,313,046 ) (1,313,046 ) (1,299,878 ) (1,265,111 )

Otherintangibles, (151,875 ) (157,373 ) (162,887 ) (168,368 ) (215,910 )net

Tangible assets (d) $ 46,100,868 $ 48,592,041 $ 47,118,450 $ 45,183,307 $ 44,211,490



Common stockshares (e) 152,379,722 152,233,106 152,185,984 152,965,571 153,571,381 outstanding



Common equity (a)to assets / 11.50 % 10.92 % 11.23 % 11.87 % 12.04 % (c)

Tangible common (b)equity to / 8.68 8.22 8.45 9.01 9.09 tangible assets (d)



Book value per (a)common share / $ 35.88 $ 35.91 $ 35.85 $ 36.20 $ 35.82 (e)

Tangible book (b) value per / 26.27 26.25 26.16 26.60 26.18common share (e)

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued

Composition of Loans and Allowance for Credit Losses excluding PPP

Quarter Ended

Change From

Sep. 30,

Jun. 30,

Jun. 30, 2020

(Dollars in thousands)

2020

2020

$

%

Commercial and industrial

$11,557,237

$12,200,721

$

(643,484

)

(5.3)%

Commercial real estate

9,627,330

9,628,344

(1,014

)

0.0

Lease financing

2,724,686

2,707,402

17,284

0.6

Total commercial loan and lease portfolio

23,909,253

24,536,467

(627,214

)

(2.6)

Residential mortgage

5,790,251

6,123,118

(332,867

)

(5.4)

Home equity

3,302,983

3,445,584

(142,601

)

(4.1)

Consumer installment

1,341,204

1,430,655

(89,451

)

(6.3)

Total consumer loan portfolio

10,434,438

10,999,357

(564,919

)

(5.1)

Total loans and leases

34,343,691

35,535,824

(1,192,133

)

(3.4)

PPP (Commercial and industrial)

1,836,850

1,819,469

17,381

1.0

Loans and leases excluding PPP loans

Commercial and industrial

9,720,387

10,381,252

(660,865

)

(6.4)

Commercial real estate

9,627,330

9,628,344

(1,014

)

0.0

Lease financing

2,724,686

2,707,402

17,284

0.6

Total commercial loan and lease portfolio

22,072,403

22,716,998

(644,595

)

(2.8)

Residential mortgage

5,790,251

6,123,118

(332,867

)

(5.4)

Home equity

3,302,983

3,445,584

(142,601

)

(4.1)

Consumer installment

1,341,204

1,430,655

(89,451

)

(6.3)

Total consumer loan portfolio

10,434,438

10,999,357

(564,919

)

(5.1)

Total loans and leases, excluding PPP loans

$32,506,841

$33,716,355

$

(1,209,514

)

(3.6)%

Allowance for credit losses

$

549,358

$

503,902

$

45,456

9.0%

Allowance for credit losses as a % of total loans and leases

1.60

%

1.42

%

18

bp

Allowance for credit losses as a % of loans and leases, excluding PPP loans

1.69

1.49

20

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Source: TCF Financial Corporation

View source version on businesswire.com: https://www.businesswire.com/news/home/20201026005841/en/

CONTACT: Randi Berris (248) 608-5239 news@tcfbank.com (Media) Timothy Sedabres (952) 745-2766 investor@tcfbank.com (Investors)