Business Wire | Jul 27, 2020 04:10PM EDT

TCF Reports Second Quarter 2020 Results

Jul. 27, 2020

DETROIT--(BUSINESS WIRE)--Jul. 27, 2020--TCF Financial Corporation (NASDAQ: TCF):

Second Quarter 2020 Highlights

* Quarterly net income of $23.8 million, or $0.14 per diluted share, down 54.2% from the first quarter of 2020 * Adjusted diluted earnings per common share of $0.54(1), down 5.3% from the first quarter of 2020. Adjusted diluted earnings per common share excludes $61.1 million, or $0.40 per share, after-tax impact of merger-related expenses and notable items * Assisted customers via COVID-19-related loan and lease deferrals with $1.8 billion of balances on deferral status as of June 30, 2020 ($1.5 billion of commercial balances and $327.1 million of consumer balances) * Assisted business and commercial customers via $1.9 billion of total loans funded through the Paycheck Protection Program ("PPP") * Completed the sale of seven Arizona branches resulting in a gain on sale of $14.7 million * Loan and lease balances declined 1.1% from March 31, 2020, primarily due to declines in the commercial and industrial and residential mortgage portfolios, partially offset by the addition of $1.8 billion of Paycheck Protection Program ("PPP") loans * Deposit growth of 9.5% compared to March 31, 2020 * Net charge-offs of $3.4 million, or 0.04% of average loans and leases (annualized) * Provision for credit losses of $78.7 million, down 18.8% from the first quarter of 2020 * Efficiency ratio of 78.26%, up 869 basis points from the first quarter of 2020. Adjusted efficiency ratio of 59.80%(1), up 156 basis points from the first quarter of 2020 * Common equity Tier 1 capital ratio of 11.09%, compared to 10.44% at March 31, 2020 * Declared quarterly cash dividends on common stock of $0.35 per share payable on September 1, 2020

Merger-related Expenses and Notable items in the Second Quarter of 2020 and First Quarter of 2020(1)

* 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, compared to pre-tax merger-related expenses of $36.7 million, $29.0 million net of tax, or $0.19 per diluted common share for the first quarter of 2020 * Pre-tax income, net of 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, compared to pre-tax net expenses of $11.3 million, $8.9 million net of tax, or $0.06 per diluted common share related to notable items for the first 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: TCF's financial results for periods ended prior to August 1, 2019 reflect Legacy TCF financial results only on a standalone basis. 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

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

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

Financial Results

Net incomeattributable $ 23,764 $ 51,899 $112,399 $ 22,148 $ 90,427 (54.2 ) % (73.7 ) %to TCF

Net interest 378,359 401,481 408,753 371,793 254,057 (5.8 ) 48.9 income

Basicearnings per $ 0.14 $ 0.33 $ 0.72 $ 0.15 $ 1.07 (57.6 ) (86.9 ) common share

Dilutedearnings per 0.14 0.32 0.72 0.15 1.07 (56.3 ) (86.9 ) common share

Return onaverage 0.21 % 0.46 % 0.99 % 0.26 % 1.54 % (25 ) bps (133 ) bpsassets("ROAA")^(3)

ROACE^(3) 1.56 3.64 8.00 1.75 14.27 (208 ) (1,271 )

ROATCE(non-GAAP)^ 2.57 5.42 11.35 2.68 15.46 (285 ) (1,289 ) (2)(3)

Net interest 3.33 3.73 3.86 4.12 4.46 (40 ) (113 ) margin

Net interestmargin (FTE)^ 3.35 3.76 3.89 4.14 4.49 (41 ) (114 ) (2)(3)

Netcharge-offsas apercentage of 0.04 0.06 0.07 0.39 0.29 (2 ) (25 ) average loansand leases^(3)

Nonperformingassets as apercentage oftotal loans 0.94 0.80 0.59 0.62 0.62 14 32 and leasesand otherreal estateowned^(4)

Efficiency 78.26 69.57 73.49 91.32 65.11 869 1,315 ratio

AdjustedFinancial Results(non-GAAP)

Adjusted netincome $ 84,862 $ 89,855 $161,581 $128,301 $ 93,650 (5.6 ) % (9.4 ) %attributableto TCF^(2)

Adjusteddilutedearnings per $ 0.54 $ 0.57 $ 1.04 $ 0.98 $ 1.11 (5.3 ) (51.4 ) common

share^(2)

Adjusted ROAA 0.70 % 0.78 % 1.42 % 1.34 % 1.59 % (8 ) bps (89 ) bps^(2)(3)

Adjusted 6.03 6.43 11.57 11.21 14.79 (40 ) (876 ) ROACE^(2)(3)

Adjusted 8.70 9.24 16.25 14.96 16.02 (54 ) (732 ) ROATCE^(2)(3)

Adjustedefficiency 59.80 58.24 58.51 58.74 61.48 156 (168 ) ratio^(2)

N.M. Not meaningful

Financial results for any periods ended prior to August 1, 2019 reflect Legacy TCF financials on a standalone basis. Certain reclassifications(1) have been made to prior period financial information to conform to the current period presentation.

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

(3) Annualized.

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).

For the Quarter Ended June 30, 2020 For the Quarter Ended March 31, 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 $ (81,619 ) $ (64,585 ) $ (0.42 ) $ (36,728 ) (29,026 ) $ (0.19 )expenses

Notable items:

Expensesrelated to thesale of Legacy (901 ) (713 ) - (3,063 ) (2,421 ) (0.02 )TCF autofinanceportfolio^(2)

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

Loan servicingrights (8,858 ) (7,009 ) (0.05 ) (8,236 ) (6,509 ) (0.04 )impairment^(4)

Total notable 4,407 3,488 0.02 (11,299 ) (8,930 ) (0.06 )items

Totalmerger-related $ (77,212 ) $ (61,097 ) $ (0.40 ) $ (48,027 ) $ (37,956 ) $ (0.25 )and notableitems



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

Second quarter of 2020 included within other noninterest expense ($0.8 million) and compensation and employee benefits ($0.1 million). First(2) quarter of 2020 included within occupancy and equipment ($1.6 million), compensation and employee benefits ($0.9 million) and other noninterest expense ($0.6 million).

(3) 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 $23.8 million, or diluted earnings per common share of $0.14, for the second quarter of 2020, compared with $51.9 million, or diluted earnings per common share of $0.32, for the first quarter of 2020. Adjusted net income was $84.9 million, or $0.54 per diluted common share for the second quarter of 2020, compared with $89.9 million, or $0.57 per diluted common share, for the first quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

"During the second quarter, we continued to demonstrate the resiliency and strength of TCF during this period of economic uncertainty, low interest rates, and global pandemic," said Craig R. Dahl, president and chief executive officer. "Our focus remains on ensuring the safety and well-being of our team members, and the financial well-being of our customers and our communities. We continued to forge ahead with our integration activities during the quarter and we remain on track for the on-time completion of our integration program during the third quarter. We remain confident in our ability to deliver on the cost synergies we committed to for the fourth quarter of this year.

"We have been active in supporting small businesses in our communities by funding $1.9 billion of loans through the PPP. We have also extended loan and lease deferrals to provide financial relief to our commercial and consumer customers, while continuing to support the broader financial needs of our customers.

"We believe TCF is well positioned with strong capital levels and substantial liquidity as we face a low interest rate environment and uncertain economic outlook. Our lending portfolios also benefit from diversification across both geographies and asset classes.

"Our team members are working extremely hard to ensure we support our customers in this current economic environment, while delivering on our commitment to being a premier Midwest bank with the size and scale to compete and win in our markets."

Net Interest Income and Net Interest Margin

Net interest income was $378.4 million for the second quarter of 2020, a decrease of $23.1 million, or 5.8%, from the first quarter of 2020. Purchase accounting accretion and amortization included in net interest income was $18.2 million for the second quarter of 2020, compared to $25.3 million for the first quarter of 2020. Adjusted net interest income, excluding purchase accounting accretion and amortization, was $360.2 million for the second quarter of 2020, compared to $376.2 million for the first quarter of 2020, a non-GAAP financial measure. Additionally, second quarter 2020 net interest income recorded included $9.6 million of interest income from PPP less funding costs. Adjusted net interest income, excluding purchase accounting accretion and amortization and the impact from PPP loans, was $350.6 million for the second quarter of 2020, a non-GAAP financial measure. Net interest margin was 3.33% for the second quarter of 2020, compared to 3.73% in the first quarter of 2020, while net interest margin on a fully tax-equivalent basis (FTE) was 3.35%, down 41 basis points from the first quarter of 2020. The decrease in net interest margin from the first quarter of 2020 was additionally driven by the full quarter impact of the Federal Reserve's rate cuts, a decrease in the benefit provided by purchase accounting accretion and amortization and higher average cash balances, partially offset by lower cost of funds. Adjusted net interest margin FTE, excluding purchase accounting accretion and amortization and the impact of PPP loans, was 3.20% in the second quarter of 2020, compared to 3.53% in the first quarter of 2020, a non-GAAP financial measure. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables for reconciliations of our noted non-GAAP measures.

Noninterest Income

Noninterest income was $133.1 million for the second quarter of 2020, a decrease of $3.9 million, or 2.9%, from the first quarter of 2020. 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. Noninterest income for the first quarter of 2020 included an $8.2 million loan servicing rights impairment, a notable item, included in other noninterest income. Adjusted noninterest income for the second quarter of 2020 was $127.2 million, compared to $145.2 million in the first quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The second quarter of 2020, compared to the first quarter of 2020, also included increases of $8.4 million in net gains on sales of loans and leases and $3.6 million in leasing revenue, which were offset by decreases of $11.8 million and $1.0 million in fee and service charges on deposit accounts and card and ATM revenue, respectively, and a decrease of $0.4 million of favorable interest rate swap mark-to-market adjustment resulting from changes in the interest rate environment, included in other noninterest income.

Noninterest Expense

Noninterest expense was $400.2 million for the second quarter of 2020, an increase of $25.6 million, or 6.8%, from the first quarter of 2020. The second quarter of 2020 included $81.6 million of merger-related expenses, compared to $36.7 million for the first 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. Noninterest expense for the first quarter of 2020 also included $3.1 million of expense related to the sale of the Legacy TCF auto finance portfolio ($1.6 million in occupancy and equipment expense, $0.9 million in compensation and employee benefits and $0.6 million in other noninterest expense) considered a notable item. Excluding merger-related expenses and notable items, adjusted noninterest expense was $317.2 million for the second quarter of 2020, compared to $334.8 million for the first quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The second quarter of 2020 also included $0.2 million of federal historic tax credit amortization, included in other noninterest expense, compared to $1.5 million in the first quarter of 2020.

Income Tax Expense

Income tax expense for the second quarter of 2020 was $6.2 million, an effective tax rate of 19.1%, compared to $13.1 million, an effective tax rate of 19.6% for the first quarter of 2020. The $6.9 million, or 52.5%, decrease in income tax expense was primarily driven by lower pre-tax income.

Credit Quality

Provision for credit losses Provision for credit losses was $78.7 million for the second quarter of 2020, a decrease of $18.2 million, from the first quarter of 2020. The provision for credit losses is comprised of $58.1 million for the provision for credit losses related to loans and leases and $20.6 million for the provision for credit losses related to unfunded lending commitments in the second quarter of 2020, compared to $93.0 million for the provision for credit losses related to loans and leases and $4.0 million for the provision for credit losses related to unfunded lending commitments in the first quarter of 2020. The decrease in provision for credit losses related to loans and leases from the first quarter of 2020 was primarily due to a decrease in loan originations, excluding PPP loans which are individually guaranteed by the Small Business Administration and therefore the accounting under CECL does not require reserves to be recorded on such loans, partially offset by the economic downturn related to COVID-19. The increase in provision for credit losses related to unfunded lending commitments from the first quarter of 2020 was primarily due to the economic downturn related to COVID-19 and a decrease in line utilization.

Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases was 0.04% for the second quarter of 2020, down 2 basis points from the first quarter of 2020.

Allowance for Credit Losses Allowance for credit losses 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. Allowance for credit losses was $503.9 million, or 1.42% of total loans and leases, at June 30, 2020, up from $428.6 million, or 1.19%, at March 31, 2020. The allowance for credit losses as a percentage of total loans and leases, excluding PPP loans was 1.49% (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 from March 31, 2020 was primarily due to further deterioration in economic outlook as a result of the impact of COVID-19.

Nonaccrual loans and leases Nonaccrual loans and leases were $291.5 million at June 30, 2020 and represented 0.82% of total loans and leases, compared to $250.5 million, or 0.70% of total loans and leases, at March 31, 2020. The $41.0 million increase in nonaccrual loans and leases from March 31, 2020 included increases within each of our loan and lease portfolios.

Balance Sheet

Loans and leases Loans and leases were $35.5 billion at June 30, 2020, a decrease of $0.4 billion, or 1.1%, compared to $35.9 billion at March 31, 2020. The decrease was primarily due to a decline in the commercial and industrial portfolio, primarily inventory finance related to seasonality, strong dealer activity and the lack of backfill from manufacturers as a result of the economic shutdown, in addition to a decline in the residential mortgage portfolio, partially offset by the addition of PPP loans. As of June 30, 2020 we had $1.8 billion of PPP loans outstanding, all included in our commercial and industrial loans.

Investment securities The investment securities portfolio was $7.3 billion at June 30, 2020, an increase of $188.6 million, or 2.6%, compared to $7.2 billion at March 31, 2020. The increase from March 31, 2020 was primarily due to purchases of residential agency mortgage-backed securities.

Deposits Deposits were $39.2 billion at June 30, 2020, an increase of $3.4 billion, or 9.5%, compared to $35.8 billion at March 31, 2020. The increase from March 31, 2020 was primarily due to increases in noninterest-bearing deposits of $2.2 billion, savings account balances of $606.5 million, money market deposits of $478.9 million and checking deposit account balances of $404.0 million, reflecting lower consumer spending.

Capital The common equity Tier 1 capital ratio was 11.09% at June 30, 2020, compared to 10.44% at March 31, 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 September 1, 2020 to shareholders of record at the close of business on August 14, 2020. In addition, the board of directors declared a quarterly cash dividend of $0.35625 per depositary share payable on September 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 August 14, 2020.

Conference Call Details TCF will host a conference call to discuss second quarter 2020 results on Tuesday, July 28, 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 2542421. To listen to the replay via phone, please dial (877) 344-7529 and enter access code 10145803. The replay begins approximately one hour after the call is completed on Tuesday, July 28, 2020 and will be available through Tuesday, August 4, 2020.

TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financialholding company with $50 billion in total assets at June 30, 2020 and a top 10deposit market share in the Midwest. TCF's primary banking subsidiary, TCFNational Bank, is a premier Midwest bank offering consumer and commercialbanking, trust and wealth management, and specialty leasing and lendingproducts and services to consumers, small businesses and commercial clients.TCF has approximately 500 branches primarily located in Michigan, Illinois andMinnesota with additional locations in Colorado, Ohio, South Dakota andWisconsin. TCF also conducts business across all 50 states and Canada throughits specialty lending and leasing businesses. To learn more about TCF, visitir.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 the merger. 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 of the transaction on TCF's future financial performance (including anticipated accretion to earnings per share, the tangible book value earn-back period and other operating and return metrics), the expected costs to be incurred in connection with the merger, 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 Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, 2020 Jun 30, 2019thousands) 2020 2020 2019 2019 2019 $ % $ %

ASSETS:

Cash and cash equivalents:

Cash and due from $ 535,507 $ 713,413 $ 491,787 $ 586,060 $ 294,566 $ (177,906 ) (24.9 ) $ 240,941 81.8 %banks %

Interest-bearingdeposits with other 2,545,170 565,458 736,584 736,954 260,705 1,979,712 N.M. 2,284,465 N.M.banks

Total cash and cash 3,080,677 1,278,871 1,228,371 1,323,014 555,271 1,801,806 140.9 2,525,406 N.M.equivalents

Federal Home LoanBank and Federal 386,483 484,461 442,440 290,238 105,659 (97,978 ) (20.2 ) 280,824 N.M.Reserve Bankstocks, at cost

Investment securities:

Available-for-sale, 7,219,373 7,025,224 6,720,001 5,579,835 3,109,803 194,149 2.8 4,109,570 132.1 at fair value

Held-to-maturity, 130,101 135,619 139,445 144,000 144,919 (5,518 ) (4.1 ) (14,818 ) (10.2 )at amortized cost

Total investment 7,349,474 7,160,843 6,859,446 5,723,835 3,254,722 188,631 2.6 4,094,752 125.8 securities

Loans and leases 532,799 287,177 199,786 1,436,069 74,410 245,622 85.5 458,389 N.M.held-for-sale

Loans and leases 35,535,824 35,921,614 34,497,464 33,510,752 19,185,137 (385,790 ) (1.1 ) 16,350,687 85.2

Allowance for loan (461,114 ) (406,383 ) (113,052 ) (121,218 ) (146,503 ) (54,731 ) (13.5 ) (314,611 ) N.M.and lease losses

Loans and leases, 35,074,710 35,515,231 34,384,412 33,389,534 19,038,634 (440,521 ) (1.2 ) 16,036,076 84.2 net

Premises and 472,240 516,454 533,138 554,194 432,751 (44,214 ) (8.6 ) 39,489 9.1 equipment, net

Goodwill 1,313,046 1,313,046 1,299,878 1,265,111 154,757 0 0.0 1,158,289 N.M.

Other intangible 157,373 162,887 168,368 215,910 18,885 (5,514 ) (3.4 ) 138,488 N.M.assets, net

Loan servicing 38,816 47,283 56,313 55,301 19 (8,467 ) (17.9 ) 38,797 N.M.rights

Other assets 1,656,842 1,828,130 1,479,401 1,439,305 991,722 (171,288 ) (9.4 ) 665,120 67.1

Total assets $ 50,062,460 $ 48,594,383 $ 46,651,553 $ 45,692,511 $ 24,626,830 $ 1,468,077 3.0 $ 25,435,630 103.3 %

LIABILITIES AND EQUITY:

Deposits:

Noninterest-bearing $ 10,480,245 $ 8,237,916 $ 7,970,590 $ 7,979,900 $ 4,062,912 $ 2,242,329 27.2 % $ 6,417,333 157.9 %

Interest-bearing 28,730,627 27,561,387 26,497,873 27,306,174 15,049,475 1,169,240 4.2 13,681,152 90.9

Total deposits 39,210,872 35,799,303 34,468,463 35,286,074 19,112,387 3,411,569 9.5 20,098,485 105.2

Short-term 2,772,998 3,482,535 2,669,145 2,607,300 350,764 (709,537 ) (20.4 ) 2,422,234 N.M.borrowings

Long-term 936,908 2,600,594 2,354,448 860,482 1,617,531 (1,663,686 ) (64.0 ) (680,623 ) (42.1 )borrowings

Other liabilities 1,483,127 1,056,118 1,432,256 1,245,238 835,630 427,009 40.4 647,497 77.5

Total liabilities 44,403,905 42,938,550 40,924,312 39,999,094 21,916,312 1,465,355 3.4 22,487,593 102.6

Equity:

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

Common stock 152,233 152,186 152,966 153,571 87,944 47 0.0 64,289 73.1

Additional paid-in 3,441,925 3,433,234 3,462,080 3,478,159 781,788 8,691 0.3 2,660,137 N.M.capital

Retained earnings 1,700,480 1,732,932 1,896,427 1,840,214 1,874,308 (32,452 ) (1.9 ) (173,828 ) (9.3 )

Accumulated othercomprehensive 198,408 166,170 54,277 56,228 37,334 32,238 19.4 161,074 N.M.income

Treasury stock at (27,093 ) (28,140 ) (28,037 ) (27,370 ) (265,017 ) 1,047 3.7 237,924 89.8 cost and other

Total TCF FinancialCorporation 5,635,255 5,625,684 5,707,015 5,670,104 2,685,659 9,571 0.2 2,949,596 109.8 shareholders'equity

Non-controlling 23,300 30,149 20,226 23,313 24,858 (6,849 ) (22.7 ) (1,558 ) (6.3 )interest

Total equity 5,658,555 5,655,833 5,727,241 5,693,417 2,710,517 2,722 0.0 2,948,038 108.8

Total liabilities $ 50,062,460 $ 48,594,383 $ 46,651,553 $ 45,692,511 $ 24,626,829 $ 1,468,077 3.0 $ 25,435,631 103.3 %and equity

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)



Quarter Ended Change From

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

Interest income:

Interest and )fees on loans $ 392,826 $ 443,096 $ 446,738 $ 417,370 $ 283,282 $ (50,270 ) (11.3 % $ 109,544 38.7 %and leases

Interest oninvestment securities:

Taxable 32,505 40,920 36,282 31,038 22,041 (8,415 ) (20.6 ) 10,464 47.5

Tax-exempt 4,155 4,349 4,374 3,385 1,208 (194 ) (4.5 ) 2,947 N.M.

Interest onloans 3,322 1,561 15,767 1,408 599 1,761 112.8 2,723 N.M.held-for-sale

Interest onother earning 5,562 5,466 6,617 6,607 3,651 96 1.8 1,911 52.3 assets

Total interest 438,370 495,392 509,778 459,808 310,781 (57,022 ) (11.5 ) 127,589 41.1 income

Interest expense:

Interest on 46,785 67,419 77,003 70,900 40,646 (20,634 ) (30.6 ) 6,139 15.1 deposits

Interest on 13,226 26,492 24,022 17,115 16,078 (13,266 ) (50.1 ) (2,852 ) (17.7 )borrowings

Total interest 60,011 93,911 101,025 88,015 56,724 (33,900 ) (36.1 ) 3,287 5.8 expense

Net interest 378,359 401,481 408,753 371,793 254,057 (23,122 ) (5.8 ) 124,302 48.9 income

Provision for 78,726 96,943 14,403 27,188 13,569 (18,217 ) (18.8 ) 65,157 N.M.credit losses

Net interestincome after 299,633 304,538 394,350 344,605 240,488 (4,905 ) (1.6 ) 59,145 24.6 provision forcredit losses

Noninterest income:

Leasing revenue 37,172 33,565 46,686 39,590 39,277 3,607 10.7 (2,105 ) (5.4 )

Fees andservice charges 22,832 34,597 39,356 34,384 27,842 (11,765 ) (34.0 ) (5,010 ) (18.0 )on depositaccounts

Net gains(losses) on 29,034 20,590 12,934 (5,984 ) 11,141 8,444 41.0 17,893 160.6 sales of loansand leases

Card and ATM 20,636 21,685 24,751 23,315 20,496 (1,049 ) (4.8 ) 140 0.7 revenue

Wealthmanagement 6,206 6,151 6,172 4,241 - 55 0.9 6,206 N.M.revenue

Servicing fee 3,041 6,792 6,022 5,121 4,523 (3,751 ) (55.2 ) (1,482 ) (32.8 )revenue

Net gains oninvestment 8 - 8 5,900 1,066 8 N.M. (1,058 ) (99.2 )securities

Other 14,125 13,583 22,123 (12,309 ) 5,373 542 4.0 8,752 162.9

Totalnoninterest 133,054 136,963 158,052 94,258 109,718 (3,909 ) (2.9 ) 23,336 21.3 income

Noninterest expense:

Compensationand employee 171,799 171,528 180,969 155,745 116,266 271 0.2 55,533 47.8 benefits

Occupancy and 54,107 57,288 56,771 49,229 41,850 (3,181 ) (5.6 ) 12,257 29.3 equipment

Lease financingequipment 18,212 18,450 18,629 19,408 19,133 (238 ) (1.3 ) (921 ) (4.8 )depreciation

Net foreclosedreal estate and 998 1,859 4,242 2,203 2,448 (861 ) (46.3 ) (1,450 ) (59.2 )repossessedassets

Merger-related 81,619 36,728 47,025 111,259 4,226 44,891 122.2 77,393 N.M.expenses

Other 73,506 88,746 108,935 87,776 52,926 (15,240 ) (17.2 ) 20,580 38.9

Totalnoninterest 400,241 374,599 416,571 425,620 236,849 25,642 6.8 163,392 69.0 expense

Income beforeincome tax 32,446 66,902 135,831 13,243 113,357 (34,456 ) (51.5 ) (80,911 ) (71.4 )expense(benefit)

Income taxexpense 6,213 13,086 21,375 (11,735 ) 19,314 (6,873 ) (52.5 ) (13,101 ) (67.8 )(benefit)

Income afterincome tax 26,233 53,816 114,456 24,978 94,043 (27,583 ) (51.3 ) (67,810 ) (72.1 )expense(benefit)

Incomeattributable to 2,469 1,917 2,057 2,830 3,616 552 28.8 (1,147 ) (31.7 )non-controllinginterest

Net incomeattributable to 23,764 51,899 112,399 22,148 90,427 (28,135 ) (54.2 ) (66,663 ) (73.7 )TCF FinancialCorporation

Preferred stock 2,494 2,493 2,494 2,494 2,494 1 - - - dividends

Net incomeavailable to $ 21,270 $ 49,406 $ 109,905 $ 19,654 $ 87,933 $ (28,136 ) (56.9 ) $ (66,663 ) (75.8 )commonshareholders

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)



Six Months Ended June 30, Change

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

Interest income:

Interest and fees on loans $ 835,922 $ 566,520 $ 269,402 47.6 %and leases

Interest on investment securities:

Taxable 73,425 38,707 34,718 89.7

Tax-exempt 8,504 3,892 4,612 118.5

Interest on loans 4,883 1,424 3,459 N.M.held-for-sale

Interest on other earning 11,028 7,132 3,896 54.6 assets

Total interest income 933,762 617,675 316,087 51.2

Interest expense:

Interest on deposits 114,204 78,254 35,950 45.9

Interest on borrowings 39,718 30,935 8,783 28.4

Total interest expense 153,922 109,189 44,733 41.0

Net interest income 779,840 508,486 271,354 53.4

Provision for credit losses 175,669 23,691 151,978 N.M.

Net interest income after 604,171 484,795 119,376 24.6 provision for credit losses

Noninterest income:

Leasing revenue 70,737 77,442 (6,705 ) (8.7 )

Fees and service charges on 57,429 54,120 3,309 6.1 deposit accounts

Net gains on sales of loans 49,624 19,358 30,266 156.3 and leases

Card and ATM revenue 42,321 39,155 3,166 8.1

Wealth management revenue 12,357 - 12,357 N.M.

Servicing fee revenue 9,833 9,633 200 2.1

Net gains on investment 8 1,517 (1,509 ) (99.5 )securities

Other 27,708 11,997 15,711 131.0

Total noninterest income 270,017 213,222 56,795 26.6

Noninterest expense:

Compensation and employee 343,327 240,208 103,119 42.9 benefits

Occupancy and equipment 111,395 83,560 27,835 33.3

Lease financing equipment 36,662 38,389 (1,727 ) (4.5 )depreciation

Net foreclosed real estate 2,857 7,078 (4,221 ) (59.6 )and repossessed assets

Merger-related expenses 118,347 13,684 104,663 N.M.

Other 162,252 107,005 55,247 51.6

Total noninterest expense 774,840 489,924 284,916 58.2

Income before income tax 99,348 208,093 (108,745 ) (52.3 )expense

Income tax expense 19,299 40,601 (21,302 ) (52.5 )

Income after income tax 80,049 167,492 (87,443 ) (52.2 )expense

Income attributable to 4,386 6,571 (2,185 ) (33.3 )non-controlling interest

Net income attributable to 75,663 160,921 (85,258 ) (53.0 )TCF Financial Corporation

Preferred stock dividends 4,987 4,987 - -

Net income available to $ 70,676 $ 155,934 $ (85,258 ) (54.7 )common shareholders

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

Quarter Ended

Jun. 30, 2020 Mar. 31, 2020 Jun. 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 $ 401,532 $ 4,376 4.38% $ 454,675 $ 3,152 2.79% $ 112,118 $ 1,093 3.91%Federal Reserve Bank stocks

Investment securities 132,054 71 0.21 136,277 560 1.64 146,296 924 2.53held-to-maturity

Investment securities available-for-sale:

Taxable 5,730,762 32,434 2.26 5,892,006 40,360 2.74 2,711,984 21,117 3.11

Tax-exempt^(3) 743,744 5,221 2.81 773,468 5,503 2.85 222,534 1,530 2.75

Loans and leases held-for-sale 356,671 3,322 3.73 138,058 1,561 4.53 40,835 599 5.88

Loans and leases^(3)(4)

Commercial and industrial 12,713,714 140,576 4.41 11,827,315 160,802 5.42 6,683,060 109,679 6.56

Commercial real estate 9,658,124 95,373 3.91 9,291,540 117,743 5.01 3,069,969 39,204 5.05

Lease financing 2,712,291 33,803 4.99 2,682,323 34,156 5.09 2,565,175 32,899 5.13

Residential mortgage 6,326,227 62,023 3.93 6,113,279 61,379 4.02 2,337,818 28,665 4.91

Home equity 3,509,107 45,314 5.19 3,514,278 51,103 5.85 2,997,050 51,588 6.90

Consumer installment 1,459,446 17,703 4.88 1,517,412 19,742 5.23 1,586,633 22,262 5.63

Total loans and leases^(3)(4) 36,378,909 394,792 4.33 34,946,147 444,925 5.08 19,239,705 284,297 5.91

Interest-bearing deposits with 1,587,665 1,186 0.30 538,971 2,314 1.72 280,075 2,557 3.64banks and other

Total interest-earning assets 45,331,337 441,402 3.88 42,879,602 498,375 4.64 22,753,547 312,117 5.48

Other assets 4,384,779 4,105,824 1,730,275

Total assets $ 49,716,116 $ 46,985,426 $ 24,483,822

LIABILITIES AND EQUITY:

Noninterest-bearing deposits $ 9,830,687 $ 7,929,933 $ 3,980,811

Interest-bearing deposits:

Savings 9,082,184 8,930 0.40 8,589,815 13,669 0.64 6,452,510 12,314 0.77

Certificates of deposit 7,491,502 26,744 1.44 7,329,632 33,065 1.81 4,527,822 23,304 2.06

Checking 6,649,288 2,329 0.14% 5,990,309 5,830 0.39% 2,479,814 440 0.07%

Money market 5,380,547 8,782 0.66 4,792,248 14,855 1.25 1,430,556 4,588 1.29

Total interest-bearing 28,603,521 46,785 0.66 26,702,004 67,419 1.02 14,890,702 40,646 1.09deposits

Total deposits 38,434,208 46,785 0.49 34,631,937 67,419 0.78 18,871,513 40,646 0.86

Borrowings:

Short-term borrowings 3,016,490 4,085 0.54 2,689,262 10,582 1.56 321,043 2,131 2.63

Long-term borrowings 1,072,394 9,141 3.40 2,608,204 15,910 2.42 1,657,527 13,946 3.34

Total borrowings 4,088,884 13,226 1.29 5,297,466 26,492 1.98 1,978,570 16,077 3.23

Total interest-bearing 32,692,405 60,011 0.74 31,999,470 93,911 1.18 16,869,272 56,723 1.34liabilities

Total deposits and borrowings 42,523,092 60,011 0.57 39,929,403 93,911 0.94 20,850,083 56,723 1.09

Accrued expenses and other 1,534,769 1,425,536 969,723 liabilities

Total liabilities 44,057,861 41,354,939 21,819,806

Total TCF FinancialCorporation shareholders' 5,630,133 5,605,159 2,634,386 equity

Non-controlling interest in 28,122 25,328 29,630 subsidiaries

Total equity 5,658,255 5,630,487 2,664,016

Total liabilities and equity $ 49,716,116 $ 46,985,426 $ 24,483,822

Net interest spread (FTE) 3.31% 3.70% 4.39%

Net interest income(FTE) and $ 381,391 3.35% $ 404,464 3.76% $ 255,394 4.49%net interest margin(FTE)

Reconciliation to Reported Net Interest Income

Net interest income (FTE) $381,391 $404,464 $255,394

Adjustments for taxableequivalent

interest^(1)(3)

Loans and leases (1,966 ) (1,829 ) (1,015 )

Tax-exempt investment (1,066 ) (1,154 ) (322 ) securities

Total FTE adjustments (3,032 ) (2,983 ) (1,337 )

Net interest income (GAAP) $378,359 $401,481 $254,057

Net interest margin (GAAP) 3.33 % 3.73 % 4.46 %

(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)



Six Months Ended June 30,

2020 2019

Average Yields Average Yields & &

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

ASSETS:

Federal Home LoanBank and Federal $ 428,103 $ 7,528 3.54% $ 108,646 $ 2,054 3.81%Reserve Bank stocks

Investmentsecurities 134,166 631 0.94 146,922 1,459 1.99held-to-maturity

Investmentsecurities available-for-sale:

Taxable 5,811,384 72,794 2.51 2,418,222 37,248 3.08

Tax-exempt^(3) 758,606 10,724 2.83 368,951 4,927 2.67

Loans and leases 247,364 4,883 3.95 47,980 1,424 5.97held-for-sale

Loans and leases^ (3)(4)

Commercial and 12,270,514 301,378 4.90 6,589,631 216,395 6.59industrial

Commercial real 9,474,832 213,116 4.45 2,994,221 76,941 5.11estate

Lease financing 2,697,307 67,959 5.04 2,546,364 65,283 5.13

Residential 6,219,753 123,402 3.97 2,341,827 58,123 4.99mortgage

Consumer 1,488,429 37,445 5.06 1,718,987 47,762 5.60installment

Home equity 3,511,693 96,417 5.52 3,022,449 104,040 6.94

Total loans and 35,662,528 839,717 4.70 19,213,479 568,544 5.94leases^(3)(4)

Interest-bearingdeposits with banks 1,063,319 3,500 0.66 270,867 5,078 3.75and other

Totalinterest-earning 44,105,470 939,777 4.25 22,575,067 620,734 5.52assets

Other assets 4,245,301 1,721,355

Total assets $ 48,350,771 $ 24,296,422

LIABILITIES AND EQUITY:

Noninterest-bearing $ 8,880,310 $ 3,950,447 deposits

Interest-bearing deposits:

Checking 6,319,799 8,159 0.26 2,468,852 827 0.07

Savings 8,836,000 22,599 0.51 6,353,800 22,984 0.73

Money market 5,086,397 23,637 0.93 1,460,427 9,041 1.25

Certificates of 7,410,567 59,809 1.62 4,574,710 45,402 2.00deposit

Totalinterest-bearing 27,652,763 114,204 0.83 14,857,789 78,254 1.06deposits

Total deposits 36,533,073 114,204 0.63 18,808,236 78,254 0.84

Borrowings:

Short-term 2,852,876 14,667 1.02 307,347 4,088 2.65borrowings

Long-term 1,840,299 25,051 2.71 1,579,613 26,847 3.39borrowings

Total borrowings 4,693,175 39,718 1.68 1,886,960 30,935 3.27

Totalinterest-bearing 32,345,938 153,922 0.95 16,744,749 109,189 1.31liabilities

Total deposits and 41,226,248 153,922 0.75 20,695,196 109,189 1.06borrowings

Accrued expensesand other 1,480,152 979,359 liabilities

Total liabilities 42,706,400 21,674,555

Total TCF FinancialCorporation 5,617,646 2,594,778 shareholders'equity

Non-controllinginterest in 26,725 27,089 subsidiaries

Total equity 5,644,371 2,621,867

Total liabilities $ 48,350,771 $ 24,296,422 and equity

Net interest spread 3.50% 4.46%(FTE)

Net interest income(FTE) and net $ 785,855 3.55% $ 511,545 4.55%interest margin(FTE)

Reconciliation to Reported Net Interest Income

Net interest income $ 785,855 $ 511,545 (FTE)

Adjustments fortaxable equivalent interest^(1)(3)

Loans (3,795 ) (2,024 )

Tax-exemptinvestment (2,220 ) (1,035 ) securities

Total FTE (6,015 ) (3,059 ) adjustments

Net interest income $ 779,840 $ 508,486 (GAAP)

Net interest margin 3.52 % 4.52 % (GAAP)

(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

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

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

ASSETS:

Federal Home Loan )Bank and Federal $ 401,532 $ 454,675 $ 388,640 $ 230,767 $ 112,118 $ (53,143 ) (11.7 % $ 289,414 N.M.Reserve Bank stocks

Investment )securities 132,054 136,277 140,434 143,078 146,296 (4,223 ) (3.1 ) (14,242 ) (9.7 %held-to-maturity

Investmentsecurities available-for-sale:

Taxable 5,730,762 5,892,006 4,960,520 4,232,878 2,711,984 (161,244 ) (2.7 ) 3,018,778 111.3

Tax-exempt 743,744 773,468 778,994 643,576 222,534 (29,724 ) (3.8 ) 521,210 N.M.

Loans and leases 356,671 138,058 1,121,326 118,482 40,835 218,613 158.3 315,836 N.M.held-for-sale

Loans and leases^(1) :

Commercial and 12,713,714 11,827,315 10,955,937 9,290,978 6,683,060 886,399 7.5 6,030,654 90.2 industrial

Commercial real 9,658,124 9,291,540 9,057,834 6,964,643 3,069,969 366,584 3.9 6,588,155 N.M.estate

Lease financing 2,712,291 2,682,323 2,616,360 2,570,567 2,565,175 29,968 1.1 147,116 5.7

Residential mortgage 6,326,227 6,113,279 6,023,647 4,853,627 2,337,818 212,948 3.5 3,988,409 170.6

Consumer installment 1,459,446 1,517,412 1,546,952 2,389,830 1,586,633 (57,966 ) (3.8 ) (127,187 ) (8.0 )

Home equity 3,509,107 3,514,278 3,604,153 3,433,830 2,997,050 (5,171 ) (0.1 ) 512,057 17.1

Total loans and 36,378,909 34,946,147 33,804,883 29,503,475 19,239,705 1,432,762 4.1 17,139,204 89.1 leases^(1)

Interest-bearingdeposits with banks 1,587,665 538,971 656,555 933,014 280,075 1,048,694 194.6 1,307,590 N.M.and other

Totalinterest-earning 45,331,337 42,879,602 41,851,352 35,805,270 22,753,547 2,451,735 5.7 22,577,790 99.2 assets

Other assets 4,384,779 4,105,824 4,268,162 3,289,096 1,730,275 278,955 6.8 2,654,504 153.4

Total assets $ 49,716,116 $ 46,985,426 $ 46,119,514 $ 39,094,366 $ 24,483,822 $ 2,730,690 5.8 $ 25,232,294 103.1

LIABILITIES AND EQUITY:

Noninterest-bearing $ 9,830,687 $ 7,929,933 $ 7,968,769 $ 6,564,195 $ 3,980,811 $ 1,900,754 24.0 $ 5,849,876 147.0 %deposits

Interest-bearing deposits:

Checking 6,649,288 5,990,309 5,891,566 4,805,843 2,479,814 658,979 11.0 4,169,474 168.1

Savings 9,082,184 8,589,815 8,404,460 7,676,165 6,452,510 492,369 5.7 2,629,674 40.8

Money market 5,380,547 4,792,248 4,463,476 3,490,922 1,430,556 588,299 12.3 3,949,991 N.M.

Certificates of 7,491,502 7,329,632 7,825,573 7,320,720 4,527,822 161,870 2.2 2,963,680 65.5 deposit

Totalinterest-bearing 28,603,521 26,702,004 26,585,075 23,293,650 14,890,702 1,901,517 7.1 13,712,819 92.1 deposits

Total deposits 38,434,208 34,631,937 34,553,844 29,857,845 18,871,513 3,802,271 11.0 19,562,695 103.7

Borrowings:

Short-term 3,016,490 2,689,262 2,585,682 1,884,228 321,043 327,228 12.2 2,695,447 N.M.borrowings

Long-term borrowings 1,072,394 2,608,204 1,739,852 1,472,150 1,657,527 (1,535,810 ) (58.9 ) (585,133 ) (35.3 )

Total borrowings 4,088,884 5,297,466 4,325,534 3,356,378 1,978,570 (1,208,582 ) (22.8 ) 2,110,314 106.7

Totalinterest-bearing 32,692,405 31,999,470 30,910,609 26,650,028 16,869,272 692,935 2.2 15,823,133 93.8 liabilities

Total deposits and 42,523,092 39,929,403 38,879,378 33,214,223 20,850,083 2,593,689 6.5 21,673,009 103.9 borrowings

Accrued expenses and 1,534,769 1,425,536 1,549,017 1,197,014 969,723 109,233 7.7 565,046 58.3 other liabilities

Total liabilities 44,057,861 41,354,939 40,428,395 34,411,237 21,819,806 2,702,922 6.5 22,238,055 101.9

Total TCF FinancialCorporation 5,630,133 5,605,159 5,667,436 4,657,613 2,634,386 24,974 0.4 2,995,747 113.7 shareholders' equity

Non-controllinginterest in 28,122 25,328 23,683 25,516 29,630 2,794 11.0 (1,508 ) (5.1 )subsidiaries

Total equity 5,658,255 5,630,487 5,691,119 4,683,129 2,664,016 27,768 0.5 2,994,239 112.4

Total liabilities $ 49,716,116 $ 46,985,426 $ 46,119,514 $ 39,094,366 $ 24,483,822 $ 2,730,690 5.8 $ 25,232,294 103.1 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.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

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



Quarter Ended Change From

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

2020 2020 2019 2019 2019 2020 2019

ASSETS:

Federal Home LoanBank and Federal 4.38 % 2.79 % 3.24 % 1.39 % 3.91 % 159 bps 47 bpsReserve Bank stocks

Investmentsecurities 0.21 1.64 2.53 1.68 2.53 (143) (232) held-to-maturity

Investmentsecurities available-for-sale:

Taxable 2.26 2.74 2.85 2.88 3.11 (48) (85)

Tax-exempt^(3) 2.81 2.85 2.84 2.66 2.75 (4) 6

Loans and leases 3.73 4.53 5.58 4.74 5.88 (80) (215) held-for-sale

Loans and leases^ (3)

Commercial and 4.41 5.42 5.63 6.25 6.56 (101) (215) industrial

Commercial real 3.91 5.01 5.38 5.45 5.05 (110) (114) estate

Lease financing 4.99 5.09 5.11 5.11 5.13 (10) (14)

Residential 3.93 4.02 4.05 4.23 4.91 (9) (98) mortgage

Consumer 4.88 5.23 4.97 5.73 5.63 (35) (75) installment

Home equity 5.19 5.85 5.93 6.49 6.90 (66) (171)

Total loans and 4.33 5.08 5.24 5.62 5.91 (75) (158) leases^(3)

Interest-bearingdeposits with banks 0.30 1.72 2.07 2.44 3.64 (142) (334) and other



Totalinterest-earning 3.88 4.64 4.85 5.11 5.48 (76) (160) assets



LIABILITIES:

Interest-bearing deposits:

Checking 0.14 0.39 0.51 0.46 0.07 (25) 7

Savings 0.40 0.64 0.71 0.73 0.77 (24) (37)

Money market 0.66 1.25 1.38 1.48 1.29 (59) (63)

Certificates of 1.44 1.81 1.97 2.07 2.06 (37) (62) deposit

Totalinterest-bearing 0.66 1.02 1.15 1.21 1.09 (36) (43) deposits

Total deposits 0.49 0.78 0.88 0.94 0.86 (29) (37)

Borrowings:

Short-term 0.54 1.56 1.73 1.11 2.63 (102) (209) borrowings

Long-term 3.40 2.42 2.87 3.17 3.34 98 6 borrowings

Total borrowings 1.29 1.98 2.19 2.01 3.23 (69) (194)



Totalinterest-bearing 0.74 1.18 1.29 1.31 1.34 (44) (60) liabilities

Total deposits and 0.57 0.94 1.03 1.05 1.09 (37) (52) borrowings



Net interest margin 3.35 3.76 3.89 4.14 4.49 (41) (114) (FTE)

(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

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

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

Commercial (1.0)and $ 12,200,721 $ 12,326,943 $ 11,439,602 $ 10,913,343 $ 6,666,106 $ (126,222 ) % $ 5,534,615 industrial

Commercial 9,628,344 9,486,904 9,136,870 8,773,970 3,168,774 141,440 1.5 6,459,570 real estate

Lease 2,707,402 2,708,998 2,699,869 2,594,373 2,582,613 (1,596 ) (0.1) 124,789 financing

Totalcommercialloan and 24,536,467 24,522,845 23,276,341 22,281,686 12,417,493 13,622 0.1 12,118,974 leaseportfolio

Residential 6,123,118 6,435,314 6,179,805 6,057,404 2,368,411 (312,196 ) (4.9) 3,754,707 mortgage

Home equity 3,445,584 3,453,502 3,498,907 3,609,410 2,924,753 (7,918 ) (0.2) 520,831

Consumer 1,430,655 1,509,953 1,542,411 1,562,252 1,474,480 (79,298 ) (5.3) (43,825 )installment

Totalconsumer 10,999,357 11,398,769 11,221,123 11,229,066 6,767,644 (399,412 ) (3.5) 4,231,713 loanportfolio

Total $ 35,535,824 $ 35,921,614 $ 34,497,464 $ 33,510,752 $ 19,185,137 $ (385,790 ) (1.1) $ 16,350,687

Composition of Deposits (Unaudited)



Quarter Ended Change From

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

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

Noninterest-bearing $ 10,480,245 $ 8,237,916 $ 7,970,590 $ 7,979,900 $ 4,062,912 $ 2,242,329 27.2% $ 6,417,333 deposits

Interest-bearing deposits:

Savings 9,310,362 8,703,864 8,506,058 8,347,541 6,503,102 606,498 7.0 2,807,260

Certificates of deposit 7,142,996 7,463,192 7,455,556 8,385,972 4,605,327 (320,196 ) (4.3) 2,537,669

Checking 6,693,092 6,289,046 5,966,178 6,266,740 2,498,042 404,046 6.4 4,195,050

Money market 5,584,177 5,105,285 4,570,081 4,305,921 1,443,004 478,892 9.4 4,141,173

Total interest-bearing 28,730,627 27,561,387 26,497,873 27,306,174 15,049,475 1,169,240 4.2 13,681,152 deposits

Total deposits $ 39,210,872 $ 35,799,303 $ 34,468,463 $ 35,286,074 $ 19,112,387 $ 3,411,569 9.5 $ 20,098,485

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data



Allowance for Credit Losses (Unaudited)



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

2020 2020 2020 2019 2019 2019

% of % of Adjusted % of % of % of(Dollars in Loan Loan for Loan Loan Loanthousands) Balance and Balance and adoption Balance and Balance and Balance and Lease Lease of CECL Lease Lease Lease Portfolio Portfolio Portfolio Portfolio Portfolio

Allowancefor loan and leaselosses

Commercialand $ 122,024 1.00% $ 117,507 0.95% $ 93,884 $ 42,430 0.38% $ 39,974 0.37% $ 38,605 0.59%industrial

Commercial 162,364 1.69 86,209 0.91 67,620 27,308 0.29 24,090 0.27 22,747 0.70real estate

Lease 19,041 0.70 27,610 1.02 21,631 14,742 0.55 14,367 0.55 14,440 0.56financing

Residential 79,479 1.30 97,185 1.51 72,939 8,099 0.13 19,816 0.33 21,102 0.89mortgage

Consumer 21,382 1.49 20,178 1.34 15,967 2,678 0.17 1,859 0.12 26,731 1.81installment

Home equity 56,824 1.65 57,694 1.67 47,003 17,795 0.51 21,112 0.58 22,878 0.78

Totalallowancefor loan $ 461,114 1.30% $ 406,383 1.13% $ 319,044 $ 113,052 0.33% $ 121,218 0.36% $ 146,503 0.76%and leaselosses

Reserve forunfunded 42,788 22,188 3,528 3,461 1,936 lendingcommitments

Totalallowance $ 503,902 1.42% $ 428,571 1.19% $ 116,580 0.34% $ 124,679 0.37% $ 148,439 0.77%for creditlosses

Changes in Allowance for Credit Losses



Quarter Ended Change From

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

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

Allowance forloan and lease losses

Balance,beginning of $ 406,383 $ 113,052 $ 121,218 $ 146,503 $ 147,972 $ 293,331 $ 258,411 period

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

Adjustedbalance, 406,383 319,044 121,218 146,503 147,972 87,339 258,411 beginning ofperiod

Charge-offs (9,958 ) (14,729 ) (16,891 ) (35,547 ) (21,066 ) 4,771 11,108

Recoveries 6,563 9,252 10,654 6,969 6,984 (2,689 ) (421 )

Net(charge-offs) (3,395 ) (5,477 ) (6,237 ) (28,578 ) (14,082 ) 2,082 10,687 recoveries

Provision forcredit lossesrelated to 58,126 92,990 14,403 27,188 13,569 (34,864 ) 44,557 loans andleases^(1)

Other^(2) - (174 ) (16,332 ) (23,895 ) (956 ) 174 956

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

Reserve forunfunded lendingcommitments

Balance,beginning of 22,188 3,528 3,461 1,936 1,941 18,660 20,247 period

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

Adjustedbalance, 22,188 18,235 3,461 1,936 1,941 3,953 20,247 beginning ofperiod

Provision(benefit) forcredit lossesrelated to 20,600 3,953 67 (342 ) (5 ) 16,647 20,605 unfundedlendingcommitments^(1)

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

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

Totalallowance for $ 503,902 $ 428,571 $ 116,580 $ 124,679 $ 148,439 $ 75,331 $ 355,463 credit losses

Provision for credit losses related to loans and leases and the provision(1) for credit losses related to unfunded lending commitments are included within Provision for Credit Losses in the Consolidated Statements of Income.

(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

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

2020 2020 2019 2019 2019

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

Commercial and industrial $ 9 - % $ (4,022 ) 0.14 % $ (5,736 ) 0.21 % $ (17,631 ) 0.76 % $ (5,820 ) 0.35 %

Commercial real estate (644 ) 0.03 563 (0.02 ) (7 ) - 13 - 9 -

Lease financing (1,392 ) 0.21 (878 ) 0.13 (1,749 ) 0.27 (2,192 ) 0.34 (966 ) 0.15

Residential mortgage (871 ) 0.06 355 (0.02 ) 1,552 (0.10 ) (189 ) 0.02 (80 ) 0.01

Consumer installment (162 ) 0.04 (1,249 ) 0.33 (2,577 ) 0.67 (8,984 ) 1.50 (6,990 ) 1.76

Home equity (335 ) 0.04 (246 ) 0.03 2,280 (0.25 ) 405 (0.05 ) (235 ) 0.03

Total net (charge-offs) $ (3,395 ) 0.04 % $ (5,477 ) 0.06 % $ (6,237 ) 0.07 % $ (28,578 ) 0.39 % $ (14,082 ) 0.29 %recoveries

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

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

Change From

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

2020 2020 2019 2019 2019 2020 2019

Commercialand 0.02 % - % - % 0.02 % - % 2 bps 2 bpsindustrial

Commercial - 0.02 0.02 0.09 - (2 ) - real estate

Lease 0.18 0.11 0.07 0.09 0.12 7 6 financing

Residential 0.01 0.01 0.01 0.01 0.05 - (4 ) mortgage

Consumer - - 0.01 - 0.14 - (14 ) installment

Home equity - 0.01 - - - (1 ) -

Subtotal 0.02 0.02 0.01 0.04 0.03 - (1 )

Portfoliosacquired withdeteriorated N/A N/A 10.43 5.47 18.92 N/A N/A creditquality^(2)

Total 0.02 % 0.02 % 0.09 % 0.09 % 0.04 % - (2 ) delinquencies

(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

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

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

Nonaccrualloans and leases:

Commercialand $ 98,184 $ 84,157 $ 53,812 $ 55,039 $ 18,483 $ 14,027 $ 79,701 industrial

Commercial 57,521 47,032 29,735 26,518 545 10,489 56,976 real estate

Lease 18,756 13,170 10,957 11,503 12,886 5,586 5,870 financing

Residential 67,762 61,980 38,577 48,816 34,760 5,782 33,002 mortgage

Consumer 1,668 989 714 636 8,633 679 (6,965 ) installment

Home equity 47,560 43,147 35,863 39,296 32,686 4,413 14,874

Totalnonaccrual 291,451 250,475 169,658 181,808 107,993 40,976 183,458 loans andleases^(1)

Other real 42,744 38,914 34,256 27,638 11,964 3,830 30,780 estate owned

Totalnonperforming $ 334,195 $ 289,389 $ 203,914 $ 209,446 $ 119,957 $ 44,806 $ 214,238 assets



Nonaccrualloans andleases as apercentage of 0.82 % 0.70 % 0.49 % 0.54 % 0.56 % 12 bps 26 bpstotal loansand leases^(1)

Allowance forloan andlease lossesas a 158.21 162.24 66.64 66.67 135.66 (403 ) 2,255 percentage ofnonaccrualloans andleases^(1)

Allowance forcredit lossesas apercentage of 172.89 171.10 68.71 68.58 137.45 179 3,544 nonaccrualloans andleases^(1)

Nonperformingassets as apercentage oftotal loans 0.94 0.80 0.59 0.62 0.62 14 32 and leasesand otherreal estateowned^(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(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

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

Dividendsdeclared $ 0.35 $ 0.35 $ 0.35 $ 0.35 $ 0.30 0.0 % 16.7 %per commonshare

Book valueper common 35.91 35.85 36.20 35.82 30.43 0.2 18.0 share

Tangiblebook value 26.25 26.16 26.60 26.18 28.33 0.3 (7.3) per commonshare^(1)

Commonequity to 10.92 % 11.23 % 11.87 % 12.04 % 10.22 % (31) bps 70 bpsassets

Tangiblecommonequity to 8.22 8.45 9.01 9.09 9.58 (23) (136) tangibleassets^(1)



RegulatoryCapital:^ (2)

Commonequity $ 4,028,681 $ 4,026,304 $ 4,050,826 $ 4,009,214 $ 2,305,706 0.1 % 74.7 %Tier 1capital

Tier 1 4,221,283 4,225,755 4,236,648 4,197,706 2,495,178 (0.1) 69.2 capital

Total 4,907,760 4,744,899 4,681,630 4,652,708 2,811,347 3.4 74.6 capital



CommonequityTier 1 11.09 % 10.44 % 10.99 % 10.88 % 10.99 % 65 bps 10 bpscapitalratio

Tier 1risk-based 11.62 10.96 11.49 11.40 11.90 66 (28) capitalratio

Totalrisk-based 13.51 12.31 12.70 12.63 13.40 120 11 capitalratio

Tier 1leverage 8.75 9.27 9.49 11.16 10.26 (52) (151) ratio

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

June 30, 2020 amounts are preliminary pending completion and filing of the(2) Corporation's regulatory reports. June 30, 2020 and March 31, 2020 regulatory capital ratios 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 netincome:



Quarter Ended

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

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

Net incomeavailable to $ 21,270 $ 49,406 $ 109,905 $ 19,654 $ 87,933 commonshareholders

Earningsallocated to - - - - (17 )participatingsecurities

Earningsallocated to (a) 21,270 49,406 109,905 19,654 87,916 common stock

Merger-related 81,619 36,728 47,025 111,259 4,226 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 8,858 8,236 (638 ) 4,520 - (recovery)impairment^(2)

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

Related incometax expense, net (16,114 ) (10,071 ) (19,904 ) (46,213 ) (1,003 )of benefits^(6)

Totaladjustments, net 61,098 37,956 49,182 106,153 3,223 of tax

Adjustedearnings (b) $ 82,368 $ 87,362 $ 159,087 $ 125,807 $ 91,139 allocated tocommon stock



Weighted-averagecommon sharesoutstanding usedin diluted (c) 151,660,139 152,114,017 152,658,766 128,754,588 82,298,920 earnings percommon sharecalculation^(7)



Diluted earnings (a)per common share / $ 0.14 $ 0.32 $ 0.72 $ 0.15 $ 1.07 (c)

Adjusted diluted (b)earnings per / 0.54 0.57 1.04 0.98 1.11 common share (c)



Net incomeattributable to $ 23,764 $ 51,899 $ 112,399 $ 22,148 $ 90,427 TCF

Totaladjustments, net 61,098 37,956 49,182 106,153 3,223 of tax

Adjusted netincome $ 84,862 $ 89,855 $ 161,581 $ 128,301 $ 93,650 attributable toTCF

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.

Computation of adjusted net interest income and margin:



Quarter Ended

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

(Dollars in 2020 2020 2019 2019 2019thousands)

Net Interest $ 378,359 $ 401,481 $ 408,753 $ 371,793 $ 254,057 Income

Purchaseaccountingaccretion (18,209 ) (25,258 ) (30,523 ) (28,411 ) - andamortization

Adjusted netinterestincome,excludingpurchase $ 360,150 $ 376,223 $ 378,230 $ 343,382 $ 254,057 accountingaccretionandamortization

Net feesrecognized (7,805 ) - - - - on PPP loans

Interestrecognition (1,759 ) - - - - on PPP loans^(1)

Total PPP (9,564 ) - - - - loans impact

Adjusted netinterestincome,excludingpurchaseaccounting $ 350,586 $ 376,223 $ 378,230 $ 343,382 $ 254,057 accretionandamortizationand PPPimpact

Net interest 3.35 % 3.76 % 3.89 % 4.14 % 4.49 %margin (FTE)

Purchaseaccountingaccretion (0.16 ) (0.23 ) (0.29 ) (0.31 ) - andamortizationimpact

Adjusted netinterestmargin,excludingpurchase 3.19 3.53 3.60 3.83 4.49 accountingaccretionandamortization(FTE)

PPP loans 0.01 - - - - impact^(2)

Adjusted netinterestmargin,excludingpurchaseaccounting 3.20 % 3.53 % 3.60 % 3.83 % 4.49 %accretionandamortizationand PPPloans impact(FTE)

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

(2) The exclusion of PPP loans additionally reduces average earning assets by $1.2 billion in the second quarter 2020.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

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



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



Quarter Ended

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

(Dollars in 2020 2020 2019 2019 2019thousands)

Adjusted netincome after tax expense:

Income after (a) $ 26,233 $ 53,816 $ 114,456 $ 24,978 $ 94,043 tax expense

Merger-related 81,619 36,728 47,025 111,259 4,226 expenses

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

Related incometax expense, (16,114 ) (10,071 ) (19,904 ) (46,213 ) (1,003 )net of taxbenefits

Adjusted netincome aftertax expense for (b) 87,331 91,772 163,638 131,131 97,266 ROAAcalculation

Net incomeavailable to (c) 21,270 49,406 109,905 19,654 87,933 commonshareholders

Otherintangibles 5,516 5,480 5,505 4,544 798 amortization

Related income (1,151 ) (1,149 ) (1,284 ) (1,085 ) (189 )tax expense

Net incomeavailable tocommon (d) 25,635 53,737 114,126 23,113 88,542 shareholdersused in ROATCEcalculation



Adjusted netincomeavailable to commonshareholders:

Net incomeavailable to 21,270 49,406 109,905 19,654 87,933 commonshareholders

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

Merger-related 81,619 36,728 47,025 111,259 4,226 expenses

Related incometax expense, (16,114 ) (10,071 ) (19,904 ) (46,213 ) (1,003 )net of taxbenefits

Net incomeavailable tocommonshareholders (e) 82,368 87,362 159,087 125,807 91,156 used inadjusted ROACEcalculation

Otherintangibles 5,516 5,480 5,505 4,544 798 amortization

Related income (1,151 ) (1,149 ) (1,284 ) (1,085 ) (189 )tax expense

Net incomeavailable tocommonshareholders (f) 86,733 91,693 163,308 129,266 91,765 used inadjusted ROATCEcalculation

Average balances:

Average assets (g) 49,716,116 46,985,426 46,119,514 39,094,366 24,483,822

Total equity 5,658,255 5,630,487 5,691,119 4,683,129 2,664,016

Non-controllinginterest in (28,122 ) (25,328 ) (23,683 ) (25,516 ) (29,630 )subsidiaries

Total TCFFinancialCorporation 5,630,133 5,605,159 5,667,436 4,657,613 2,634,386 shareholders'equity

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

Average totalcommonshareholders' (h) 5,460,831 5,435,857 5,498,134 4,488,311 2,465,084 equity used inROACEcalculation

Goodwill, net (1,313,046 ) (1,301,080 ) (1,266,166 ) (890,155 ) (154,757 )

Otherintangibles, (160,841 ) (166,298 ) (211,294 ) (142,925 ) (19,270 )net

Averagetangible commonshareholders' (i) $ 3,986,944 $ 3,968,479 $ 4,020,674 $ 3,455,231 $ 2,291,057 equity used inROATCEcalculation



(a)ROAA^(1) / 0.21 % 0.46 % 0.99 % 0.26 % 1.54 % (g)

Adjusted ROAA^ (b)(1) / 0.70 0.78 1.42 1.34 1.59 (g)

(c)ROACE^(1) / 1.56 3.64 8.00 1.75 14.27 (h)

Adjusted ROACE^ (e)(1) / 6.03 6.43 11.57 11.21 14.79 (h)

(d)ROATCE^(1) / 2.57 5.42 11.35 2.68 15.46 (i)

Adjusted ROATCE (f)^(1) / 8.70 9.24 16.25 14.96 16.02 (i)

(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 noninterestexpense:



Quarter Ended

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

(Dollars in 2020 2020 2019 2019 2019thousands)

Noninterest (a) $ 400,241 $ 374,599 $ 416,571 $ 425,620 $ 236,849 expense

Merger-related (81,619 ) (36,728 ) (47,025 ) (111,259 ) (4,226 )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 317,170 334,808 355,041 308,471 232,623 expense

Leasefinancing (18,212 ) (18,450 ) (18,629 ) (19,408 ) (19,133 )equipmentdepreciation

Amortization (5,516 ) (5,480 ) (5,505 ) (4,544 ) (798 )of intangibles

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

Adjustednoninterestexpense, (b) 293,263 309,357 326,877 284,519 212,692 efficiencyratio



Net interest 378,359 401,481 408,753 371,793 254,057 income

Noninterest 133,054 136,963 158,052 94,258 109,718 income

Total revenue (c) 511,413 538,444 566,805 466,051 363,775



Noninterest 133,054 136,963 158,052 94,258 109,718 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 8,858 8,236 (638 ) 4,520 - impairment(recovery)

Adjustednoninterest 127,195 145,199 165,608 129,475 109,718 income

Net interest 378,359 401,481 408,753 371,793 254,057 income

Net interestincome FTE 3,032 2,983 2,896 2,488 1,337 adjustment

Adjusted netinterest 381,391 404,464 411,649 374,281 255,394 income

Leasefinancing (18,212 ) (18,450 ) (18,629 ) (19,408 ) (19,133 )equipmentdepreciation

Adjusted totalrevenue, (d) $ 490,374 $ 531,213 $ 558,628 $ 484,348 $ 345,979 efficiencyratio



Efficiency (a)ratio / 78.26 % 69.57 % 73.49 % 91.32 % 65.11 % (c)

Adjusted (b)efficiency / 59.80 58.24 58.51 58.74 61.48 ratio (d)

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

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



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



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

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

Total equity $ 5,658,555 $ 5,655,833 $ 5,727,241 $ 5,693,417 $ 2,710,517

Non-controllinginterest in (23,300 ) (30,149 ) (20,226 ) (23,313 ) (24,858 )subsidiaries

Total TCFFinancialCorporation 5,635,255 5,625,684 5,707,015 5,670,104 2,685,659 shareholders'equity

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

Total commonstockholders' (a) 5,465,953 5,456,382 5,537,713 5,500,802 2,516,357 equity

Goodwill, net (1,313,046 ) (1,313,046 ) (1,299,878 ) (1,265,111 ) (154,757 )

Otherintangibles, (157,373 ) (162,887 ) (168,368 ) (215,910 ) (18,885 )net

Tangible commonshareholders' (b) 3,995,534 3,980,449 4,069,467 4,019,781 2,342,715 equity



Total assets (c) 50,062,460 48,594,383 46,651,553 45,692,511 24,626,830

Goodwill, net (1,313,046 ) (1,313,046 ) (1,299,878 ) (1,265,111 ) (154,757 )

Otherintangibles, (157,373 ) (162,887 ) (168,368 ) (215,910 ) (18,885 )net

Tangible assets (d) $ 48,592,041 $ 47,118,450 $ 45,183,307 $ 44,211,490 $ 24,453,188



Common stockshares (e) 152,233,106 152,185,984 152,965,571 153,571,381 82,703,469 outstanding



Common equity (a)to assets / 10.92 % 11.23 % 11.87 % 12.04 % 10.22 % (c)

Tangible common (b)equity to / 8.22 8.45 9.01 9.09 9.58 tangible assets (d)



Book value per (a)common share / $ 35.91 $ 35.85 $ 36.20 $ 35.82 $ 30.43 (e)

Tangible book (b) value per / 26.25 26.16 26.60 26.18 28.33common 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

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

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

Commercialand $12,200,721 $12,326,943 $11,439,602 $10,913,343 $6,666,106 $ (126,222 ) (1.0)% $ 5,534,615 industrial

Commercial 9,628,344 9,486,904 9,136,870 8,773,970 3,168,774 141,440 1.5 6,459,570 real estate

Lease 2,707,402 2,708,998 2,699,869 2,594,373 2,582,613 (1,596 ) (0.1) 124,789 financing

Totalcommercialloan and 24,536,467 24,522,845 23,276,341 22,281,686 12,417,493 13,622 0.1 12,118,974 leaseportfolio

Residential 6,123,118 6,435,314 6,179,805 6,057,404 2,368,411 (312,196 ) (4.9) 3,754,707 mortgage

Consumer 1,430,655 1,509,953 1,542,411 1,562,252 1,474,480 (79,298 ) (5.3) (43,825 )installment

Home equity 3,445,584 3,453,502 3,498,907 3,609,410 2,924,753 (7,918 ) (0.2) 520,831

Totalconsumer 10,999,357 11,398,769 11,221,123 11,229,066 6,767,644 (399,412 ) (3.5) 4,231,713 loanportfolio

Total loans 35,535,824 35,921,614 34,497,464 33,510,752 19,185,137 (385,790 ) (1.1) 16,350,687 and leases

PPP(Commercial 1,819,469 - - - - $ 1,819,469 N.M. 1,819,469 andindustrial)

Loans andleases excludingPPP loans

Commercialand 10,381,252 12,326,943 11,439,602 10,913,343 6,666,106 (1,945,691 ) (15.8) 3,715,146 industrial

Commercial 9,628,344 9,486,904 9,136,870 8,773,970 3,168,774 141,440 1.5 6,459,570 real estate

Lease 2,707,402 2,708,998 2,699,869 2,594,373 2,582,613 (1,596 ) (0.1) 124,789 financing

Totalcommercialloan and 22,716,998 24,522,845 23,276,341 22,281,686 12,417,493 (1,805,847 ) (7.4) 10,299,505 leaseportfolio

Residential 6,123,118 6,435,314 6,179,805 6,057,404 2,368,411 (312,196 ) (4.9) 3,754,707 mortgage

Consumer 1,430,655 1,509,953 1,542,411 1,562,252 1,474,480 (79,298 ) (5.3) (43,825 )installment

Home equity 3,445,584 3,453,502 3,498,907 3,609,410 2,924,753 (7,918 ) (0.2) 520,831

Totalconsumer 10,999,357 11,398,769 11,221,123 11,229,066 6,767,644 (399,412 ) (3.5) 4,231,713 loanportfolio

Total loansand leases, $33,716,355 $35,921,614 $34,497,464 $33,510,752 $19,185,137 $ (2,205,259 ) (6.1)% $ 14,531,218 excludingPPP loans

Allowancefor credit $ 503,902 $ 428,571 $ 116,580 $ 124,679 $ 148,439 $ 75,331 17.6% $ 355,463 losses

Allowancefor creditlosses as a 1.42% 1.19% 0.34% 0.37% 0.77% 23 bp 65 % of totalloans andleases

Allowancefor creditlosses as a% of loans 1.49 1.19 0.34 0.37 0.77 30 72 and leases,excludingPPP loans



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