Business Wire | Jan 22, 2021 09:08AM EST

TCF Reports Fourth Quarter 2020 Results

Jan. 22, 2021

DETROIT--(BUSINESS WIRE)--Jan. 22, 2021--TCF Financial Corporation (NASDAQ: TCF):

Fourth Quarter 2020 Highlights

* Quarterly net income of $91.4 million, or $0.58 per diluted share, up 63.9% from the third quarter of 2020 * Adjusted diluted earnings per common share of $0.75(1), up 19.0% from the third quarter of 2020. Adjusted diluted earnings per common share excludes $24.7 million, or $0.17 per share, after-tax impact of merger-related expenses and notable items * Loan and lease balances grew 0.4% from September 30, 2020. Loan and lease balances, excluding PPP loans, grew 1.2% from September 30, 2020 * Net charge-offs of $11.6 million, or 0.14% of average loans and leases (annualized) * Provision for credit losses of $11.8 million, down 83.0% from the third quarter of 2020 * Allowance for credit losses, which includes the reserve for unfunded lending commitments, of 1.59% of total loans and leases, compared to 1.60% at September 30, 2020 * Nonaccrual loans and leases of $677.3 million, up $300.6 million, or 79.8%, from September 30, 2020 * Efficiency ratio of 74.53%, improved 76 basis points from the third quarter of 2020. Adjusted efficiency ratio of 64.80%(1), up 363 basis points from the third quarter of 2020 * Common equity Tier 1 capital ratio of 11.45%, compared to 11.45% at September 30, 2020 * On December 13, 2020, announced merger with Huntington Bancshares Incorporated ("Huntington"), which is expected to close in the second quarter of 2021

Merger-related Expenses and Notable items in the Fourth Quarter of 2020 and Third Quarter of 2020(1)

* Pre-tax merger-related expenses of $31.5 million, $24.4 million net of tax, or $0.17 per diluted common share for the fourth quarter of 2020, compared to 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 * Pre-tax expenses of $357 thousand, $276 thousand net of tax, related to notable items for the fourth quarter of 2020, compared to pre-tax expenses of $154 thousand, $122 thousand net of tax, related to notable items for the third 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.

Summary of Financial Results

At or For the Quarter Ended

Change From

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Dec. 31,

(Dollars in thousands, except per share data)

2020

2020

2020

2020

2019

2020

2019

Financial Results

Net income attributable to TCF

$

91,358

$

55,738

$

23,764

$

51,899

$

112,399

63.9

%

(18.7)

%

Net interest income

381,394

377,167

378,359

401,481

408,753

1.1

(6.7)

Basic earnings per common share

$

0.58

$

0.35

$

0.14

$

0.33

$

0.72

65.7

(19.4)

Diluted earnings per common share

0.58

0.35

0.14

0.32

0.72

65.7

(19.4)

Return on average assets ("ROAA")(1)

0.78

%

0.46

%

0.21

%

0.46

%

0.99

%

32

bps

(21)

bps

ROACE(1)

6.44

3.87

1.56

3.64

8.00

257

(156)

ROATCE (non-GAAP)(1)(2)

9.18

5.71

2.57

5.42

11.35

347

(217)

Net interest margin

3.53

3.31

3.33

3.73

3.86

22

(33)

Net interest margin (FTE)(1)(2)

3.55

3.34

3.35

3.76

3.89

21

(34)

Net charge-offs as a percentage of average loans and leases(1)

0.14

0.28

0.04

0.06

0.07

(14)

7

Nonperforming assets as a percentage of total loans and leases and other real estate owned(3)

2.06

1.20

0.94

0.80

0.59

86

147

Efficiency ratio

74.53

75.29

78.26

69.57

73.49

(76)

104

Adjusted Financial Results (non-GAAP)

Adjusted net income attributable to TCF(1)(2)

$116,054

$98,696

$84,862

$89,855

$161,581

17.6

%

(28.2)

%

Adjusted diluted earnings per common

share(2)

$

0.75

$

0.63

$

0.54

$

0.57

$

1.04

19.0

(27.9)

Adjusted ROAA(1)(2)

0.99

%

0.81

%

0.70

%

0.78

%

1.42

%

18

bps

(43)

bps

Adjusted ROACE(1)(2)

8.23

6.99

6.03

6.43

11.57

124

(334)

Adjusted ROATCE(1)(2)

11.62

9.96

8.70

9.24

16.25

166

(463)

Adjusted efficiency ratio(2)

64.80

61.17

59.80

58.24

58.51

363

629

Summary of Financial Results

At or For the Quarter Ended Change From

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

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

Financial Results

Net incomeattributable $ 91,358 $ 55,738 $ 23,764 $ 51,899 $ 112,399 63.9 % (18.7) %to TCF

Net interest 381,394 377,167 378,359 401,481 408,753 1.1 (6.7) income

Basicearnings per $ 0.58 $ 0.35 $ 0.14 $ 0.33 $ 0.72 65.7 (19.4) common share

Dilutedearnings per 0.58 0.35 0.14 0.32 0.72 65.7 (19.4) common share

Return onaverage 0.78 % 0.46 % 0.21 % 0.46 % 0.99 % 32 bps (21) bpsassets("ROAA")^(1)

ROACE^(1) 6.44 3.87 1.56 3.64 8.00 257 (156)

ROATCE(non-GAAP)^ 9.18 5.71 2.57 5.42 11.35 347 (217) (1)(2)

Net interest 3.53 3.31 3.33 3.73 3.86 22 (33) margin

Net interestmargin (FTE)^ 3.55 3.34 3.35 3.76 3.89 21 (34) (1)(2)

Netcharge-offsas apercentage of 0.14 0.28 0.04 0.06 0.07 (14) 7 average loansand leases^(1)

Nonperformingassets as apercentage oftotal loans 2.06 1.20 0.94 0.80 0.59 86 147 and leasesand otherreal estateowned^(3)

Efficiency 74.53 75.29 78.26 69.57 73.49 (76) 104 ratio

AdjustedFinancial Results(non-GAAP)

Adjusted netincome $116,054 $98,696 $84,862 $89,855 $161,581 17.6 % (28.2) %attributableto TCF^(1)(2)

Adjusteddilutedearnings per $ 0.75 $ 0.63 $ 0.54 $ 0.57 $ 1.04 19.0 (27.9) common

share^(2)

Adjusted ROAA 0.99 % 0.81 % 0.70 % 0.78 % 1.42 % 18 bps (43) bps^(1)(2)

Adjusted 8.23 6.99 6.03 6.43 11.57 124 (334) ROACE^(1)(2)

Adjusted 11.62 9.96 8.70 9.24 16.25 166 (463) ROATCE^(1)(2)

Adjustedefficiency 64.80 61.17 59.80 58.24 58.51 363 629 ratio^(2)

(1)

Annualized.

(2)

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

(3)

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).

(1) Annualized.

(2) 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(3) 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 December 31, 2020 For the Quarter Ended September 30, 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 $ (31,530) $ (24,420) $ (0.17) $ (54,011) (42,836) $ (0.28) expenses

Notable items:

Loan servicingrights (357) (276) - (154) (122) - impairment^(2)

Total notable (357) (276) - (154) (122) - items

Totalmerger-related $ (31,887) $ (24,696) $ (0.17) $ (54,165) $ (42,958) $ (0.28) and notableitems

(1)

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

(2)

Included within other noninterest income.

TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ: TCF) today reported net income of $91.4 million, or diluted earnings per common share of $0.58, for the fourth quarter of 2020, compared with $55.7 million, or diluted earnings per common share of $0.35, for the third quarter of 2020. Adjusted net income was $116.1 million, or $0.75 per diluted common share for the fourth quarter of 2020, compared with $98.7 million, or $0.63 per diluted common share, for the third quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

"The fourth quarter was highlighted by strong momentum across the bank which helped drive higher loan and lease balances, increased revenues, net interest margin expansion, and strong capital ratios, all of which position us well as we prepare to complete our announced merger with Huntington in the second quarter of 2021," said David T. Provost, chief executive officer. "We believe this merger will benefit our key stakeholders through leading market share in top Midwest markets, increased scale, a broader product set, enhanced technology capabilities and investments, and significant earnings per share accretion. As we look forward to the closing of the merger, our focus over the next several months will be on taking care of our team members, serving both our consumer and commercial customers, and growing the business."

Net Interest Income and Net Interest Margin

Net interest income was $381.4 million for the fourth quarter of 2020, an increase of $4.2 million, or 1.1%, from the third quarter of 2020. Purchase accounting accretion and amortization included in net interest income was $23.0 million for the fourth quarter of 2020, compared to $17.7 million for the third quarter of 2020. At December 31, 2020, the remaining fair value discount from purchase accounting on acquired loans totaled $108.1 million. Additionally, fourth quarter of 2020 net interest income recorded included $19.1 million of interest and fee income from PPP less funding costs, compared to $14.7 million for the third quarter of 2020. Adjusted net interest income, including FTE adjustments and excluding purchase accounting accretion and amortization and the impact from PPP loans, a non-GAAP financial measure, was $342.5 million for the fourth quarter of 2020, compared to $347.6 million for the third quarter of 2020.

Net interest margin was 3.53% for the fourth quarter of 2020, compared to 3.31% in the third quarter of 2020, while net interest margin on a fully tax-equivalent basis (FTE), a non-GAAP financial measure, was 3.55%, up 21 basis points from the third quarter of 2020. The increase in net interest margin from the third quarter of 2020 was primarily driven by lower cash balances, lower cost of funds and overall higher yields on loans benefited by PPP forgiveness and higher accretion, partially offset by new loan and lease originations at lower yields than loan and lease runoff. Deposit costs continued to reprice lower as they declined from 0.32% in the third quarter of 2020 to 0.22% in the fourth quarter of 2020. Adjusted net interest margin FTE, excluding a 21 basis point impact related to purchase accounting accretion and amortization and a four basis point impact related to PPP loans, a non-GAAP financial measure, was 3.30% for the fourth quarter of 2020, up 11 basis point from the third 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 $127.2 million for the fourth quarter of 2020, an increase of $8.4 million, or 7.1%, from the third quarter of 2020. Noninterest income for the fourth quarter of 2020 included a notable item of a $357 thousand loan servicing rights impairment, included in other noninterest income. 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. Adjusted noninterest income, a non-GAAP financial measure, for the fourth quarter of 2020 was $127.6 million, compared to $119.0 million in the third quarter of 2020. The fourth quarter of 2020 noninterest income, compared to the third quarter of 2020, also included increases of $8.2 million in leasing revenue due to an increase in sales-type lease revenue through our equipment financing activity and $4.3 million in fees and service charges on deposit accounts, partially offset by decreases of $9.8 million in net gains on sales of loans and leases and $2.3 million in net gains on investment securities. The decrease in net gains on sales of loans and leases was primarily due to lower volume and gain on sale rate. The fourth quarter of 2020 also included a $2.4 million favorable 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 $2.6 million in the third quarter of 2020.

Noninterest Expense

Noninterest expense was $379.1 million for the fourth quarter of 2020, an increase of $5.7 million, or 1.5%, from the third quarter of 2020. The fourth quarter of 2020 included $31.5 million of merger-related expenses, $15.5 million of executive severance expense recorded in compensation and benefits expense, and $3.6 million of historic tax credit amortization recorded in other noninterest expense. The increase in the fourth quarter of 2020 primarily reflected increases of $22.7 million in compensation and benefits expense, $3.7 million in other noninterest expense and $1.8 million in occupancy and equipment expense, partially offset by a decrease of $22.5 million in merger-related expenses. Compensation and benefits expense also included $4.5 million of higher commission expense, compared to the third quarter of 2020 driven by stronger leasing activity and loan originations.

Income Tax Expense

Income tax expense for the fourth quarter of 2020 was $25.0 million, an effective tax rate of 21.3%, compared to income tax benefit of $4.4 million for the third quarter of 2020. Income tax expense for the third quarter included a $16.0 million benefit 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 was 21.9% for the third quarter of 2020.

Credit Quality

Provision for credit losses Provision for credit losses was $11.8 million for the fourth quarter of 2020, a decrease of $57.8 million, from the third quarter of 2020. The provision for credit losses in the fourth quarter of 2020 reflects stabilization in the overall level of allowance for credit losses ("ACL") primarily resulting from improvement in both current and forecasted macro-economic conditions, offset by continued uncertainty around the performance of sectors more heavily impacted by COVID-19. Fourth quarter 2020 net charge-offs were $11.6 million, compared to $24.6 million in the third quarter of 2020.

Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases were 0.14% for the fourth quarter of 2020, down 14 basis points from the third quarter of 2020.

Allowance for Credit Losses The 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 $549.2 million, or 1.59% of total loans and leases, at December 31, 2020, compared to $549.4 million, or 1.60%, at September 30, 2020. The ACL as a percentage of total loans and leases, excluding PPP loans, a non-GAAP financial measure, was relatively stable at 1.67% at December 31, 2020, compared to 1.69% at September 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.

Nonaccrual loans and leases Nonaccrual loans and leases were $677.3 million at December 31, 2020 and represented 1.97% of total loans and leases, compared to $376.7 million, or 1.10% of total loans and leases, at September 30, 2020. The $300.6 million increase in nonaccrual loans and leases from September 30, 2020 included a $251.9 million increase from the commercial portfolio and a $48.6 million increase from the consumer portfolio. The increase within the commercial portfolio was primarily driven by certain sectors more heavily impacted by COVID-19, including the motor coach, shuttle bus, and hotel sectors.

Nonaccrual loans and leases in the motor coach sector were $104.0 million, an increase of $65.7 million from September 30, 2020, while nonaccrual loans and leases in the shuttle bus sector were $36.4 million, an increase of $24.0 million from September 30, 2020, and nonaccrual loans in the hotel sector were $78.5 million, an increase of $57.1 million from September 30, 2020. Due to the prolonged recovery of revenues for borrowers in these sectors given the dependency on travel and related activity levels, we have taken a proactive approach by working with borrowers to extend deferrals into 2021 where necessary, many of which have been moved to nonaccrual status.

Loan and Lease Deferrals Loans and leases on deferral status were $329.8 million at December 31, 2020, a decrease of $73.8 million, or 18.3%, from September 30, 2020. Loans and leases on deferral status included $218.0 million of balances that are included in nonaccrual balances at December 31, 2020, the majority of which have been on deferral for over 180 days.

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

(2) Included within other noninterest income.

TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ: TCF) today reported net income of $91.4 million, or diluted earnings per common share of $0.58, for the fourth quarter of 2020, compared with $55.7 million, or diluted earnings per common share of $0.35, for the third quarter of 2020. Adjusted net income was $116.1 million, or $0.75 per diluted common share for the fourth quarter of 2020, compared with $98.7 million, or $0.63 per diluted common share, for the third quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

"The fourth quarter was highlighted by strong momentum across the bank which helped drive higher loan and lease balances, increased revenues, net interest margin expansion, and strong capital ratios, all of which position us well as we prepare to complete our announced merger with Huntington in the second quarter of 2021," said David T. Provost, chief executive officer. "We believe this merger will benefit our key stakeholders through leading market share in top Midwest markets, increased scale, a broader product set, enhanced technology capabilities and investments, and significant earnings per share accretion. As we look forward to the closing of the merger, our focus over the next several months will be on taking care of our team members, serving both our consumer and commercial customers, and growing the business."

Net Interest Income and Net Interest Margin

Net interest income was $381.4 million for the fourth quarter of 2020, an increase of $4.2 million, or 1.1%, from the third quarter of 2020. Purchase accounting accretion and amortization included in net interest income was $23.0 million for the fourth quarter of 2020, compared to $17.7 million for the third quarter of 2020. At December 31, 2020, the remaining fair value discount from purchase accounting on acquired loans totaled $108.1 million. Additionally, fourth quarter of 2020 net interest income recorded included $19.1 million of interest and fee income from PPP less funding costs, compared to $14.7 million for the third quarter of 2020. Adjusted net interest income, including FTE adjustments and excluding purchase accounting accretion and amortization and the impact from PPP loans, a non-GAAP financial measure, was $342.5 million for the fourth quarter of 2020, compared to $347.6 million for the third quarter of 2020.

Net interest margin was 3.53% for the fourth quarter of 2020, compared to 3.31% in the third quarter of 2020, while net interest margin on a fully tax-equivalent basis (FTE), a non-GAAP financial measure, was 3.55%, up 21 basis points from the third quarter of 2020. The increase in net interest margin from the third quarter of 2020 was primarily driven by lower cash balances, lower cost of funds and overall higher yields on loans benefited by PPP forgiveness and higher accretion, partially offset by new loan and lease originations at lower yields than loan and lease runoff. Deposit costs continued to reprice lower as they declined from 0.32% in the third quarter of 2020 to 0.22% in the fourth quarter of 2020. Adjusted net interest margin FTE, excluding a 21 basis point impact related to purchase accounting accretion and amortization and a four basis point impact related to PPP loans, a non-GAAP financial measure, was 3.30% for the fourth quarter of 2020, up 11 basis point from the third 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 $127.2 million for the fourth quarter of 2020, an increase of $8.4 million, or 7.1%, from the third quarter of 2020. Noninterest income for the fourth quarter of 2020 included a notable item of a $357 thousand loan servicing rights impairment, included in other noninterest income. 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. Adjusted noninterest income, a non-GAAP financial measure, for the fourth quarter of 2020 was $127.6 million, compared to $119.0 million in the third quarter of 2020. The fourth quarter of 2020 noninterest income, compared to the third quarter of 2020, also included increases of $8.2 million in leasing revenue due to an increase in sales-type lease revenue through our equipment financing activity and $4.3 million in fees and service charges on deposit accounts, partially offset by decreases of $9.8 million in net gains on sales of loans and leases and $2.3 million in net gains on investment securities. The decrease in net gains on sales of loans and leases was primarily due to lower volume and gain on sale rate. The fourth quarter of 2020 also included a $2.4 million favorable 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 $2.6 million in the third quarter of 2020.

Noninterest Expense

Noninterest expense was $379.1 million for the fourth quarter of 2020, an increase of $5.7 million, or 1.5%, from the third quarter of 2020. The fourth quarter of 2020 included $31.5 million of merger-related expenses, $15.5 million of executive severance expense recorded in compensation and benefits expense, and $3.6 million of historic tax credit amortization recorded in other noninterest expense. The increase in the fourth quarter of 2020 primarily reflected increases of $22.7 million in compensation and benefits expense, $3.7 million in other noninterest expense and $1.8 million in occupancy and equipment expense, partially offset by a decrease of $22.5 million in merger-related expenses. Compensation and benefits expense also included $4.5 million of higher commission expense, compared to the third quarter of 2020 driven by stronger leasing activity and loan originations.

Income Tax Expense

Income tax expense for the fourth quarter of 2020 was $25.0 million, an effective tax rate of 21.3%, compared to income tax benefit of $4.4 million for the third quarter of 2020. Income tax expense for the third quarter included a $16.0 million benefit 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 was 21.9% for the third quarter of 2020.

Credit Quality

Provision for credit losses Provision for credit losses was $11.8 million for the fourth quarter of 2020, a decrease of $57.8 million, from the third quarter of 2020. The provision for credit losses in the fourth quarter of 2020 reflects stabilization in the overall level of allowance for credit losses ("ACL") primarily resulting from improvement in both current and forecasted macro-economic conditions, offset by continued uncertainty around the performance of sectors more heavily impacted by COVID-19. Fourth quarter 2020 net charge-offs were $11.6 million, compared to $24.6 million in the third quarter of 2020.

Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases were 0.14% for the fourth quarter of 2020, down 14 basis points from the third quarter of 2020.

Allowance for Credit Losses The 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 $549.2 million, or 1.59% of total loans and leases, at December 31, 2020, compared to $549.4 million, or 1.60%, at September 30, 2020. The ACL as a percentage of total loans and leases, excluding PPP loans, a non-GAAP financial measure, was relatively stable at 1.67% at December 31, 2020, compared to 1.69% at September 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.

Nonaccrual loans and leases Nonaccrual loans and leases were $677.3 million at December 31, 2020 and represented 1.97% of total loans and leases, compared to $376.7 million, or 1.10% of total loans and leases, at September 30, 2020. The $300.6 million increase in nonaccrual loans and leases from September 30, 2020 included a $251.9 million increase from the commercial portfolio and a $48.6 million increase from the consumer portfolio. The increase within the commercial portfolio was primarily driven by certain sectors more heavily impacted by COVID-19, including the motor coach, shuttle bus, and hotel sectors.

Nonaccrual loans and leases in the motor coach sector were $104.0 million, an increase of $65.7 million from September 30, 2020, while nonaccrual loans and leases in the shuttle bus sector were $36.4 million, an increase of $24.0 million from September 30, 2020, and nonaccrual loans in the hotel sector were $78.5 million, an increase of $57.1 million from September 30, 2020. Due to the prolonged recovery of revenues for borrowers in these sectors given the dependency on travel and related activity levels, we have taken a proactive approach by working with borrowers to extend deferrals into 2021 where necessary, many of which have been moved to nonaccrual status.

Loan and Lease Deferrals Loans and leases on deferral status were $329.8 million at December 31, 2020, a decrease of $73.8 million, or 18.3%, from September 30, 2020. Loans and leases on deferral status included $218.0 million of balances that are included in nonaccrual balances at December 31, 2020, the majority of which have been on deferral for over 180 days.

Balance Sheet

Loans and leases

Dec. 31, Sep. 30, Change

(Dollars in thousands) 2020 2020 $ %

Total loans and leases $ 34,466,408 $ 34,343,691 $ 122,717 0.4 %

PPP loans 1,553,908 1,836,850 $ (282,942 ) (15.4 )

Adjusted total loans and $ 32,912,500 $ 32,506,841 $ 405,659 1.2 %leases, excluding PPP^(1)

(1)

Denotes a non-GAAP financial measure.

Loans and leases were $34.5 billion at December 31, 2020, an increase of $122.7 million, or 0.4%, compared to $34.3 billion at September 30, 2020. At December 31, 2020 we had $1.6 billion of PPP loans outstanding, compared to $1.8 billion at September 30, 2020, all included in our commercial and industrial loan portfolio. Loans and leases excluding PPP loans, a non-GAAP financial measure, increased $405.7 million, or 1.2%, from September 30, 2020, primarily due to increases in the residential mortgage, lease financing and commercial and industrial portfolios.

Investment securities The investment securities portfolio was $8.5 billion at December 31, 2020, an increase of $852.6 million, or 11.2%, compared to $7.6 billion at September 30, 2020. The increase from September 30, 2020 was primarily due to purchases of residential mortgage-backed securities.

Deposits Deposits were $38.9 billion at December 31, 2020, a decrease of $315.8 million, or 0.8%, compared to September 30, 2020. Increases in noninterest-bearing deposits of $345.0 million, savings account balances of $214.5 million and money market accounts of $166.3 million were offset by decreases in certificates of deposits of $810.4 million and checking deposit account balances of $231.2 million as of December 31, 2020 compared to September 30, 2020. On a year-over-year basis, noninterest-bearing deposits increased $3.1 billion, or 38.5%.

Capital The common equity Tier 1 capital ratio was 11.45% at December 31, 2020, compared to 11.45% at September 30, 2020. Our capital ratios reflect our election of the five-year CECL transition for regulatory capital purposes.

TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $48 billion in total assets at December 31, 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 statements regarding 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.

This release also contains forward-looking statements regarding TCF's outlook or expectations with respect to the planned merger with Huntington. Examples of forward-looking statements include, but are not limited to, statements regarding the outlook and expectations of TCF and Huntington with respect to the planned merger, the strategic benefits and financial benefits of the merger, including the expected impact of the merger on the combined corporation's future financial performance (including anticipated accretion to earnings per share, the tangible book value earn-back period and other operating and return metrics), and the timing of the closing of the merger. Such risks, uncertainties and assumptions, include, among others:

* the failure to obtain necessary regulatory approvals when expected or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect TCF or Huntington or the expected benefits of the merger); * the failure of either TCF or Huntington to obtain shareholder approval, or to satisfy any of the other closing conditions to the merger on a timely basis or at all; * the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement; * the possibility that the anticipated benefits of the merger, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of the impact of, or problems arising from, economic weakness, competitive factors in the areas where TCF and Huntington do business, or as a result of other unexpected factors or events; * the impact of purchase accounting with respect to the merger, or any change in the assumptions used regarding the assets purchased and liabilities assumed to determine their fair value; * diversion of management's attention from ongoing business operations and opportunities; * potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the merger; * the ability of either TCF or Huntington to repurchase their stock and the prices at which such repurchases may be made; * the outcome of any legal proceedings that may be instituted against TCF or Huntington; * the integration of the businesses and operations of TCF and Huntington, which may take longer than anticipated or be more costly than anticipated or have unanticipated adverse results relating to our businesses; * business disruptions following the merger; and * other factors that may affect future results of TCF and Huntington including changes in asset quality and credit risk; the inability to grow revenue and earnings; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms.

Additional factors that could cause results to differ materially from those described above can be found in the risk factors described in Part I, Item 1A of TCF's Annual Report on Form 10-K under the heading "Risk Factors" filed with the SEC for the year ended December 31, 2019 or otherwise disclosed in documents filed or furnished by us with or to the SEC after the filing of the Annual Report on Form 10-K. TCF disclaims any obligation to update or revise any forward-looking statements contained in this communication, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

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) Denotes a non-GAAP financial measure.

Loans and leases were $34.5 billion at December 31, 2020, an increase of $122.7 million, or 0.4%, compared to $34.3 billion at September 30, 2020. At December 31, 2020 we had $1.6 billion of PPP loans outstanding, compared to $1.8 billion at September 30, 2020, all included in our commercial and industrial loan portfolio. Loans and leases excluding PPP loans, a non-GAAP financial measure, increased $405.7 million, or 1.2%, from September 30, 2020, primarily due to increases in the residential mortgage, lease financing and commercial and industrial portfolios.

Investment securities The investment securities portfolio was $8.5 billion at December 31, 2020, an increase of $852.6 million, or 11.2%, compared to $7.6 billion at September 30, 2020. The increase from September 30, 2020 was primarily due to purchases of residential mortgage-backed securities.

Deposits Deposits were $38.9 billion at December 31, 2020, a decrease of $315.8 million, or 0.8%, compared to September 30, 2020. Increases in noninterest-bearing deposits of $345.0 million, savings account balances of $214.5 million and money market accounts of $166.3 million were offset by decreases in certificates of deposits of $810.4 million and checking deposit account balances of $231.2 million as of December 31, 2020 compared to September 30, 2020. On a year-over-year basis, noninterest-bearing deposits increased $3.1 billion, or 38.5%.

Capital The common equity Tier 1 capital ratio was 11.45% at December 31, 2020, compared to 11.45% at September 30, 2020. Our capital ratios reflect our election of the five-year CECL transition for regulatory capital purposes.

TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $48 billion in total assets at December 31, 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 statements regarding 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.

This release also contains forward-looking statements regarding TCF's outlook or expectations with respect to the planned merger with Huntington. Examples of forward-looking statements include, but are not limited to, statements regarding the outlook and expectations of TCF and Huntington with respect to the planned merger, the strategic benefits and financial benefits of the merger, including the expected impact of the merger on the combined corporation's future financial performance (including anticipated accretion to earnings per share, the tangible book value earn-back period and other operating and return metrics), and the timing of the closing of the merger. Such risks, uncertainties and assumptions, include, among others:

* the failure to obtain necessary regulatory approvals when expected or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect TCF or Huntington or the expected benefits of the merger); * the failure of either TCF or Huntington to obtain shareholder approval, or to satisfy any of the other closing conditions to the merger on a timely basis or at all; * the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement; * the possibility that the anticipated benefits of the merger, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of the impact of, or problems arising from, economic weakness, competitive factors in the areas where TCF and Huntington do business, or as a result of other unexpected factors or events; * the impact of purchase accounting with respect to the merger, or any change in the assumptions used regarding the assets purchased and liabilities assumed to determine their fair value; * diversion of management's attention from ongoing business operations and opportunities; * potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the merger; * the ability of either TCF or Huntington to repurchase their stock and the prices at which such repurchases may be made; * the outcome of any legal proceedings that may be instituted against TCF or Huntington; * the integration of the businesses and operations of TCF and Huntington, which may take longer than anticipated or be more costly than anticipated or have unanticipated adverse results relating to our businesses; * business disruptions following the merger; and * other factors that may affect future results of TCF and Huntington including changes in asset quality and credit risk; the inability to grow revenue and earnings; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms.

Additional factors that could cause results to differ materially from those described above can be found in the risk factors described in Part I, Item 1A of TCF's Annual Report on Form 10-K under the heading "Risk Factors" filed with the SEC for the year ended December 31, 2019 or otherwise disclosed in documents filed or furnished by us with or to the SEC after the filing of the Annual Report on Form 10-K. TCF disclaims any obligation to update or revise any forward-looking statements contained in this communication, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

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

ASSETS:

Cash and cash equivalents:

Cash and due from $ 531,918 $ 538,481 $ 535,507 $ 713,413 $ 491,787 $ (6,563 ) (1.2 ) $ 40,131 8.2 %banks %

Interest-bearingdeposits with other 728,677 1,232,773 2,545,170 565,458 736,584 (504,096 ) (40.9 ) (7,907 ) (1.1 )banks

Total cash and cash 1,260,595 1,771,254 3,080,677 1,278,871 1,228,371 (510,659 ) (28.8 ) 32,224 2.6 equivalents

Federal Home LoanBank and Federal 320,436 300,444 386,483 484,461 442,440 19,992 6.7 (122,004 ) (27.6 )Reserve Bankstocks, at cost

Investment securities:

Available-for-sale, 8,284,723 7,446,163 7,219,373 7,025,224 6,720,001 838,560 11.3 1,564,722 23.3 at fair value

Held-to-maturity, 184,359 170,309 130,101 135,619 139,445 14,050 8.2 44,914 32.2 at amortized cost

Total investment 8,469,082 7,616,472 7,349,474 7,160,843 6,859,446 852,610 11.2 1,609,636 23.5 securities

Loans and leases 222,028 460,427 532,799 287,177 199,786 (238,399 ) (51.8 ) 22,242 11.1 held-for-sale

Loans and leases 34,466,408 34,343,691 35,535,824 35,921,614 34,497,464 122,717 0.4 (31,056 ) (0.1 )

Allowance for loan (525,868 ) (515,229 ) (461,114 ) (406,383 ) (113,052 ) (10,639 ) (2.1 ) (412,816 ) N.M.and lease losses

Loans and leases, 33,940,540 33,828,462 35,074,710 35,515,231 34,384,412 112,078 0.3 (443,872 ) (1.3 )net

Premises and 470,131 469,699 472,240 516,454 533,138 432 0.1 (63,007 ) (11.8 )equipment, net

Goodwill 1,313,046 1,313,046 1,313,046 1,313,046 1,299,878 0 0.0 13,168 1.0

Other intangible 146,377 151,875 157,373 162,887 168,368 (5,498 ) (3.6 ) (21,991 ) (13.1 )assets, net

Loan servicing 38,303 38,253 38,816 47,283 56,313 50 0.1 (18,010 ) (32.0 )rights

Other assets 1,621,949 1,615,857 1,656,842 1,828,130 1,479,401 6,092 0.4 142,548 9.6

Total assets $ 47,802,487 $ 47,565,789 $ 50,062,460 $ 48,594,383 $ 46,651,553 $ 236,698 0.5 % $ 1,150,934 2.5 %

LIABILITIES AND EQUITY:

Deposits:

Noninterest-bearing $ 11,036,086 $ 10,691,041 $ 10,480,245 $ 8,237,916 $ 7,970,590 $ 345,045 3.2 % $ 3,065,496 38.5 %

Interest-bearing 27,820,233 28,481,056 28,730,627 27,561,387 26,497,873 (660,823 ) (2.3 ) 1,322,360 5.0

Total deposits 38,856,319 39,172,097 39,210,872 35,799,303 34,468,463 (315,778 ) (0.8 ) 4,387,856 12.7

Short-term 617,363 655,461 2,772,998 3,482,535 2,669,145 (38,098 ) (5.8 ) (2,051,782 ) (76.9 )borrowings

Long-term 1,374,732 871,845 936,908 2,600,594 2,354,448 502,887 57.7 (979,716 ) (41.6 )borrowings

Other liabilities 1,264,776 1,207,966 1,483,127 1,056,118 1,432,256 56,810 4.7 (167,480 ) (11.7 )

Total liabilities 42,113,190 41,907,369 44,403,905 42,938,550 40,924,312 205,821 0.5 1,188,878 2.9

Equity:

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

Common stock 152,566 152,380 152,233 152,186 152,966 186 0.1 (400 ) (0.3 )

Additional paid-in 3,457,802 3,450,669 3,441,925 3,433,234 3,462,080 7,133 0.2 (4,278 ) (0.1 )capital

Retained earnings 1,735,201 1,700,044 1,700,480 1,732,932 1,896,427 35,157 2.1 (161,226 ) (8.5 )

Accumulated othercomprehensive 182,673 191,771 198,408 166,170 54,277 (9,098 ) (4.7 ) 128,396 N.M.income

Other (26,731 ) (27,122 ) (27,093 ) (28,140 ) (28,037 ) 391 1.4 1,306 4.7

Total TCF FinancialCorporation 5,670,813 5,637,044 5,635,255 5,625,684 5,707,015 33,769 0.6 (36,202 ) (0.6 )shareholders'equity

Non-controlling 18,484 21,376 23,300 30,149 20,226 (2,892 ) (13.5 ) (1,742 ) (8.6 )interest

Total equity 5,689,297 5,658,420 5,658,555 5,655,833 5,727,241 30,877 0.5 (37,944 ) (0.7 )

Total liabilities $ 47,802,487 $ 47,565,789 $ 50,062,460 $ 48,594,383 $ 46,651,553 $ 236,698 0.5 % $ 1,150,934 2.5 %and equity

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

Quarter Ended

Change From

(Dollars in thousands)

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30, 2020

Dec. 31, 2019

2020

2020

2020

2020

2019

$

%

$

%

Interest income:

Interest and fees on loans and leases

$

366,152

$

373,112

$

392,826

$

443,096

$

446,738

$

(6,960

)

(1.9

)%

$

(80,586

)

(18.0

)%

Interest on investment securities:

Taxable

35,389

35,648

32,505

40,920

36,282

(259

)

(0.7

)

(893

)

(2.5

)

Tax-exempt

3,772

3,892

4,155

4,349

4,374

(120

)

(3.1

)

(602

)

(13.8

)

Interest on loans held-for-sale

2,682

3,829

3,322

1,561

15,767

(1,147

)

(30.0

)

(13,085

)

(83.0

)

Interest on other earning assets

3,457

3,967

5,562

5,466

6,617

(510

)

(12.9

)

(3,160

)

(47.8

)

Total interest income

411,452

420,448

438,370

495,392

509,778

(8,996

)

(2.1

)

(98,326

)

(19.3

)

Interest expense:

Interest on deposits

20,930

31,852

46,785

67,419

77,003

(10,922

)

(34.3

)

(56,073

)

(72.8

)

Interest on borrowings

9,128

11,429

13,226

26,492

24,022

(2,301

)

(20.1

)

(14,894

)

(62.0

)

Total interest expense

30,058

43,281

60,011

93,911

101,025

(13,223

)

(30.6

)

(70,967

)

(70.2

)

Net interest income

381,394

377,167

378,359

401,481

408,753

4,227

1.1

(27,359

)

(6.7

)

Provision for credit losses

11,818

69,664

78,726

96,943

14,403

(57,846

)

(83.0

)

(2,585

)

(17.9

)

Net interest income after provision for credit losses

369,576

307,503

299,633

304,538

394,350

62,073

20.2

(24,774

)

(6.3

)

Noninterest income:

Leasing revenue

40,081

31,905

37,172

33,565

46,686

8,176

25.6

(6,605

)

(14.1

)

Fees and service charges on deposit accounts

29,782

25,470

22,832

34,597

39,356

4,312

16.9

(9,574

)

(24.3

)

Card and ATM revenue

22,995

23,383

20,636

21,685

24,751

(388

)

(1.7

)

(1,756

)

(7.1

)

Net gains on sales of loans and leases

13,662

23,490

29,034

20,590

12,934

(9,828

)

(41.8

)

728

5.6

Wealth management revenue

6,838

6,506

6,206

6,151

6,172

332

5.1

666

10.8

Servicing fee revenue

449

321

3,041

6,792

6,022

128

39.9

(5,573

)

(92.5

)

Net gains on investment securities

6

2,324

8

0

8

(2,318

)

(99.7

)

(2

)

(25.0

)

Other

13,423

5,411

14,125

13,583

22,123

8,012

148.1

(8,700

)

(39.3

)

Total noninterest income

127,236

118,810

133,054

136,963

158,052

8,426

7.1

(30,816

)

(19.5

)

Noninterest expense:

Compensation and employee benefits

191,052

168,323

171,799

171,528

180,969

22,729

13.5

10,083

5.6

Occupancy and equipment

50,062

48,233

54,107

57,288

56,771

1,829

3.8

(6,709

)

(11.8

)

Lease financing equipment depreciation

18,610

17,932

18,212

18,450

18,629

678

3.8

(19

)

(0.1

)

Net foreclosed real estate and repossessed assets

761

1,518

998

1,859

4,242

(757

)

(49.9

)

(3,481

)

(82.1

)

Merger-related expenses

31,530

54,011

81,619

36,728

47,025

(22,481

)

(41.6

)

(15,495

)

(33.0

)

Other

87,076

83,423

73,506

88,746

108,935

3,653

4.4

(21,859

)

(20.1

)

Total noninterest expense

379,091

373,440

400,241

374,599

416,571

5,651

1.5

(37,480

)

(9.0

)

Income before income tax expense (benefit)

117,721

52,873

32,446

66,902

135,831

64,848

122.6

(18,110

)

(13.3

)

Income tax expense (benefit)

25,031

(4,429

)

6,213

13,086

21,375

29,460

N.M.

3,656

17.1

Income after income tax expense (benefit)

92,690

57,302

26,233

53,816

114,456

35,388

61.8

(21,766

)

(19.0

)

Income attributable to non-controlling interest

1,332

1,564

2,469

1,917

2,057

(232

)

(14.8

)

(725

)

(35.2

)

Net income attributable to TCF Financial Corporation

91,358

55,738

23,764

51,899

112,399

35,620

63.9

(21,041

)

(18.7

)

Preferred stock dividends

2,494

2,494

2,494

2,493

2,494

-

-

-

-

Net income available to common shareholders

$

88,864

$

53,244

$

21,270

$

49,406

$

109,905

$

35,620

66.9

%

$

(21,041

)

(19.1

)%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)



Quarter Ended Change From

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

Interest income:

Interest and fees on loans and $ 366,152 $ 373,112 $ 392,826 $ 443,096 $ 446,738 $ (6,960 ) (1.9 ) $ (80,586 ) (18.0 )leases % %

Interest on investment securities:

Taxable 35,389 35,648 32,505 40,920 36,282 (259 ) (0.7 ) (893 ) (2.5 )

Tax-exempt 3,772 3,892 4,155 4,349 4,374 (120 ) (3.1 ) (602 ) (13.8 )

Interest on loans held-for-sale 2,682 3,829 3,322 1,561 15,767 (1,147 ) (30.0 ) (13,085 ) (83.0 )

Interest on other earning 3,457 3,967 5,562 5,466 6,617 (510 ) (12.9 ) (3,160 ) (47.8 )assets

Total interest income 411,452 420,448 438,370 495,392 509,778 (8,996 ) (2.1 ) (98,326 ) (19.3 )

Interest expense:

Interest on deposits 20,930 31,852 46,785 67,419 77,003 (10,922 ) (34.3 ) (56,073 ) (72.8 )

Interest on borrowings 9,128 11,429 13,226 26,492 24,022 (2,301 ) (20.1 ) (14,894 ) (62.0 )

Total interest expense 30,058 43,281 60,011 93,911 101,025 (13,223 ) (30.6 ) (70,967 ) (70.2 )

Net interest income 381,394 377,167 378,359 401,481 408,753 4,227 1.1 (27,359 ) (6.7 )

Provision for credit losses 11,818 69,664 78,726 96,943 14,403 (57,846 ) (83.0 ) (2,585 ) (17.9 )

Net interest income after 369,576 307,503 299,633 304,538 394,350 62,073 20.2 (24,774 ) (6.3 )provision for credit losses

Noninterest income:

Leasing revenue 40,081 31,905 37,172 33,565 46,686 8,176 25.6 (6,605 ) (14.1 )

Fees and service charges on 29,782 25,470 22,832 34,597 39,356 4,312 16.9 (9,574 ) (24.3 )deposit accounts

Card and ATM revenue 22,995 23,383 20,636 21,685 24,751 (388 ) (1.7 ) (1,756 ) (7.1 )

Net gains on sales of loans and 13,662 23,490 29,034 20,590 12,934 (9,828 ) (41.8 ) 728 5.6 leases

Wealth management revenue 6,838 6,506 6,206 6,151 6,172 332 5.1 666 10.8

Servicing fee revenue 449 321 3,041 6,792 6,022 128 39.9 (5,573 ) (92.5 )

Net gains on investment 6 2,324 8 0 8 (2,318 ) (99.7 ) (2 ) (25.0 )securities

Other 13,423 5,411 14,125 13,583 22,123 8,012 148.1 (8,700 ) (39.3 )

Total noninterest income 127,236 118,810 133,054 136,963 158,052 8,426 7.1 (30,816 ) (19.5 )

Noninterest expense:

Compensation and employee 191,052 168,323 171,799 171,528 180,969 22,729 13.5 10,083 5.6 benefits

Occupancy and equipment 50,062 48,233 54,107 57,288 56,771 1,829 3.8 (6,709 ) (11.8 )

Lease financing equipment 18,610 17,932 18,212 18,450 18,629 678 3.8 (19 ) (0.1 )depreciation

Net foreclosed real estate and 761 1,518 998 1,859 4,242 (757 ) (49.9 ) (3,481 ) (82.1 )repossessed assets

Merger-related expenses 31,530 54,011 81,619 36,728 47,025 (22,481 ) (41.6 ) (15,495 ) (33.0 )

Other 87,076 83,423 73,506 88,746 108,935 3,653 4.4 (21,859 ) (20.1 )

Total noninterest expense 379,091 373,440 400,241 374,599 416,571 5,651 1.5 (37,480 ) (9.0 )

Income before income tax 117,721 52,873 32,446 66,902 135,831 64,848 122.6 (18,110 ) (13.3 )expense (benefit)

Income tax expense (benefit) 25,031 (4,429 ) 6,213 13,086 21,375 29,460 N.M. 3,656 17.1

Income after income tax expense 92,690 57,302 26,233 53,816 114,456 35,388 61.8 (21,766 ) (19.0 )(benefit)

Income attributable to 1,332 1,564 2,469 1,917 2,057 (232 ) (14.8 ) (725 ) (35.2 )non-controlling interest

Net income attributable to TCF 91,358 55,738 23,764 51,899 112,399 35,620 63.9 (21,041 ) (18.7 )Financial Corporation

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

Net income available to common $ 88,864 $ 53,244 $ 21,270 $ 49,406 $ 109,905 $ 35,620 66.9 % $ (21,041 ) (19.1 )shareholders %

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

Year Ended December 31,

Change

(Dollars in thousands, except per share data)

2020

2019

$

%

Interest income:

Interest and fees on loans and leases

$

1,575,186

$

1,430,628

$

144,558

10.1

%

Interest on investment securities:

Taxable

144,462

106,027

38,435

36.3

Tax-exempt

16,168

11,651

4,517

38.8

Interest on loans held-for-sale

11,394

18,599

(7,205

)

(38.7

)

Interest on other earning assets

18,452

20,356

(1,904

)

(9.4

)

Total interest income

1,765,662

1,587,261

178,401

11.2

Interest expense:

Interest on deposits

166,986

226,157

(59,171

)

(26.2

)

Interest on borrowings

60,275

72,072

(11,797

)

(16.4

)

Total interest expense

227,261

298,229

(70,968

)

(23.8

)

Net interest income

1,538,401

1,289,032

249,369

19.3

Provision for credit losses

257,151

65,282

191,869

N.M.

Net interest income after provision for credit losses

1,281,250

1,223,750

57,500

4.7

Noninterest income:

Leasing revenue

142,723

163,718

(20,995

)

(12.8

)

Fees and service charges on deposit accounts

112,681

127,860

(15,179

)

(11.9

)

Card and ATM revenue

88,699

87,221

1,478

1.7

Net gains on sales of loans and leases

86,776

26,308

60,468

N.M.

Wealth management revenue

25,701

10,413

15,288

146.8

Servicing fee revenue

10,603

20,776

(10,173

)

(49.0

)

Net gains on investment securities

2,338

7,425

(5,087

)

(68.5

)

Other

46,542

21,811

24,731

113.4

Total noninterest income

516,063

465,532

50,531

10.9

Noninterest expense:

Compensation and employee benefits

702,702

576,922

125,780

21.8

Occupancy and equipment

209,690

189,560

20,130

10.6

Lease financing equipment depreciation

73,204

76,426

(3,222

)

(4.2

)

Net foreclosed real estate and repossessed assets

5,136

13,523

(8,387

)

(62.0

)

Merger-related expenses

203,888

171,968

31,920

18.6

Other

332,751

303,716

29,035

9.6

Total noninterest expense

1,527,371

1,332,115

195,256

14.7

Income before income tax expense

269,942

357,167

(87,225

)

(24.4

)

Income tax expense

39,901

50,241

(10,340

)

(20.6

)

Income after income tax expense

230,041

306,926

(76,885

)

(25.1

)

Income attributable to non-controlling interest

7,282

11,458

(4,176

)

(36.4

)

Net income attributable to TCF Financial Corporation

222,759

295,468

(72,709

)

(24.6

)

Preferred stock dividends

9,975

9,975

-

-

Net income available to common shareholders

$

212,784

$

285,493

$

(72,709

)

(25.5

)%

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)



Year Ended December 31, Change

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

Interest income:

Interest and fees on $ 1,575,186 $ 1,430,628 $ 144,558 10.1 %loans and leases

Interest on investment securities:

Taxable 144,462 106,027 38,435 36.3

Tax-exempt 16,168 11,651 4,517 38.8

Interest on loans 11,394 18,599 (7,205 ) (38.7 )held-for-sale

Interest on other 18,452 20,356 (1,904 ) (9.4 )earning assets

Total interest income 1,765,662 1,587,261 178,401 11.2

Interest expense:

Interest on deposits 166,986 226,157 (59,171 ) (26.2 )

Interest on borrowings 60,275 72,072 (11,797 ) (16.4 )

Total interest expense 227,261 298,229 (70,968 ) (23.8 )

Net interest income 1,538,401 1,289,032 249,369 19.3

Provision for credit 257,151 65,282 191,869 N.M.losses

Net interest incomeafter provision for 1,281,250 1,223,750 57,500 4.7 credit losses

Noninterest income:

Leasing revenue 142,723 163,718 (20,995 ) (12.8 )

Fees and servicecharges on deposit 112,681 127,860 (15,179 ) (11.9 )accounts

Card and ATM revenue 88,699 87,221 1,478 1.7

Net gains on sales of 86,776 26,308 60,468 N.M.loans and leases

Wealth management 25,701 10,413 15,288 146.8 revenue

Servicing fee revenue 10,603 20,776 (10,173 ) (49.0 )

Net gains on investment 2,338 7,425 (5,087 ) (68.5 )securities

Other 46,542 21,811 24,731 113.4

Total noninterest 516,063 465,532 50,531 10.9 income

Noninterest expense:

Compensation and 702,702 576,922 125,780 21.8 employee benefits

Occupancy and equipment 209,690 189,560 20,130 10.6

Lease financing 73,204 76,426 (3,222 ) (4.2 )equipment depreciation

Net foreclosed realestate and repossessed 5,136 13,523 (8,387 ) (62.0 )assets

Merger-related expenses 203,888 171,968 31,920 18.6

Other 332,751 303,716 29,035 9.6

Total noninterest 1,527,371 1,332,115 195,256 14.7 expense

Income before income 269,942 357,167 (87,225 ) (24.4 )tax expense

Income tax expense 39,901 50,241 (10,340 ) (20.6 )

Income after income tax 230,041 306,926 (76,885 ) (25.1 )expense

Income attributable tonon-controlling 7,282 11,458 (4,176 ) (36.4 )interest

Net income attributableto TCF Financial 222,759 295,468 (72,709 ) (24.6 )Corporation

Preferred stock 9,975 9,975 - - dividends

Net income available to $ 212,784 $ 285,493 $ (72,709 ) (25.5 )common shareholders %

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

Quarter Ended

Dec. 31, 2020

Sep. 30, 2020

Dec. 31, 2019

Average

Yields &

Average

Yields &

Average

Yields &

(Dollars in thousands)

Balance

Interest(1)

Rates(1)(2)

Balance

Interest(1)

Rates(1)(2)

Balance

Interest(1)

Rates(1)(2)

ASSETS:

Federal Home Loan Bank and Federal Reserve Bank stocks

$

301,460

$

2,855

3.77

%

$

361,320

$

2,973

3.27

%

$

388,640

$

3,170

3.24

%

Investment securities held-to-maturity

162,590

638

1.57

135,332

573

1.69

140,434

889

2.53

Investment securities available-for-sale:

Taxable

6,553,126

34,751

2.12

6,021,643

35,075

2.33

4,960,520

35,393

2.85

Tax-exempt(3)

652,743

4,774

2.93

685,652

4,972

2.90

778,994

5,536

2.84

Loans and leases held-for-sale

419,704

2,682

2.56

490,886

3,829

3.13

1,121,326

15,767

5.58

Loans and leases(3)(4)

Commercial and industrial

11,425,226

130,654

4.51

11,740,727

127,751

4.30

10,955,937

156,246

5.63

Commercial real estate

9,623,256

96,278

3.91

9,616,301

95,779

3.90

9,057,834

124,431

5.38

Lease financing

2,700,298

32,617

4.83

2,679,142

32,696

4.88

2,616,360

33,431

5.11

Residential mortgage

5,788,514

52,711

3.64

5,987,754

57,610

3.86

6,023,647

61,072

4.05

Home equity

3,202,321

39,722

4.93

3,399,468

43,489

5.09

3,604,153

53,910

5.93

Consumer installment

1,288,382

16,396

5.06

1,386,448

17,551

5.04

1,546,952

19,382

4.97

Total loans and leases(3)(4)

34,027,997

368,378

4.28

34,809,840

374,876

4.26

33,804,883

448,472

5.24

Interest-bearing deposits with banks and other

706,114

602

0.34

2,572,254

994

0.16

656,555

3,448

2.07

Total interest-earning assets

42,823,734

414,680

3.83

45,076,927

423,292

3.72

41,851,352

512,675

4.85

Other assets

4,537,786

4,462,673

4,268,162

Total assets

$

47,361,520

$

49,539,600

$

46,119,514

LIABILITIES AND EQUITY:

Noninterest-bearing deposits

$

10,942,071

$

10,654,288

$

7,968,769

Interest-bearing deposits:

Savings

9,395,608

1,759

0.07

9,301,198

4,050

0.17

8,404,460

14,993

0.71

Certificates of deposit

5,784,759

11,580

0.80

6,657,697

18,446

1.10

7,825,573

38,859

1.97

Checking

7,029,938

1,763

0.10

7,029,914

2,025

0.11

5,891,566

7,614

0.51

Money market

5,478,528

5,828

0.42

5,501,747

7,331

0.53

4,463,476

15,537

1.38

Total interest-bearing deposits

27,688,833

20,930

0.30

28,490,556

31,852

0.44

26,585,075

77,003

1.15

Total deposits

38,630,904

20,930

0.22

39,144,844

31,852

0.32

34,553,844

77,003

0.88

Borrowings:

Short-term borrowings

252,749

101

0.16

2,153,030

2,511

0.46

2,585,682

11,403

1.73

Long-term borrowings

1,253,556

9,027

2.87

910,149

8,918

3.91

1,739,852

12,620

2.87

Total borrowings

1,506,305

9,128

2.41

3,063,179

11,429

1.48

4,325,534

24,023

2.19

Total interest-bearing liabilities

29,195,138

30,058

0.41

31,553,735

43,281

0.55

30,910,609

101,026

1.29

Total deposits and borrowings

40,137,209

30,058

0.30

42,208,023

43,281

0.41

38,879,378

101,026

1.03

Accrued expenses and other liabilities

1,517,120

1,633,850

1,549,017

Total liabilities

41,654,329

43,841,873

40,428,395

Total TCF Financial Corporation shareholders' equity

5,687,196

5,675,089

5,667,436

Non-controlling interest in subsidiaries

19,995

22,638

23,683

Total equity

5,707,191

5,697,727

5,691,119

Total liabilities and equity

$

47,361,520

$

49,539,600

$

46,119,514

Net interest spread (FTE)

3.53

%

3.31

%

3.82

%

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

$

384,622

3.55

%

$

380,011

3.34

%

$

411,649

3.89

%

Reconciliation to Reported Net Interest Income

Net interest income and net interest margin (GAAP)

$

381,394

3.53

%

$

377,167

3.31

%

$

408,753

3.86

%

Adjustments for taxable equivalent

interest(1)(3)

Loans and leases

2,226

1,764

1,734

Tax-exempt investment securities

1,002

1,080

1,162

Total FTE adjustments

3,228

2,844

2,896

Net interest income and net interest margin (FTE)

$

384,622

3.55

%

$

380,011

3.34

%

$

411,649

3.89

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

Quarter Ended

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

Average Yields Average Yields Average Yields & & &

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

ASSETS:

Federal Home LoanBank and Federal $ 301,460 $ 2,855 3.77 % $ 361,320 $ 2,973 3.27 % $ 388,640 $ 3,170 3.24 %Reserve Bank stocks

Investmentsecurities 162,590 638 1.57 135,332 573 1.69 140,434 889 2.53 held-to-maturity

Investmentsecurities available-for-sale:

Taxable 6,553,126 34,751 2.12 6,021,643 35,075 2.33 4,960,520 35,393 2.85

Tax-exempt^(3) 652,743 4,774 2.93 685,652 4,972 2.90 778,994 5,536 2.84

Loans and leases 419,704 2,682 2.56 490,886 3,829 3.13 1,121,326 15,767 5.58 held-for-sale

Loans and leases^ (3)(4)

Commercial and 11,425,226 130,654 4.51 11,740,727 127,751 4.30 10,955,937 156,246 5.63 industrial

Commercial real 9,623,256 96,278 3.91 9,616,301 95,779 3.90 9,057,834 124,431 5.38 estate

Lease financing 2,700,298 32,617 4.83 2,679,142 32,696 4.88 2,616,360 33,431 5.11

Residential 5,788,514 52,711 3.64 5,987,754 57,610 3.86 6,023,647 61,072 4.05 mortgage

Home equity 3,202,321 39,722 4.93 3,399,468 43,489 5.09 3,604,153 53,910 5.93

Consumer 1,288,382 16,396 5.06 1,386,448 17,551 5.04 1,546,952 19,382 4.97 installment

Total loans and 34,027,997 368,378 4.28 34,809,840 374,876 4.26 33,804,883 448,472 5.24 leases^(3)(4)

Interest-bearingdeposits with banks 706,114 602 0.34 2,572,254 994 0.16 656,555 3,448 2.07 and other

Totalinterest-earning 42,823,734 414,680 3.83 45,076,927 423,292 3.72 41,851,352 512,675 4.85 assets

Other assets 4,537,786 4,462,673 4,268,162

Total assets $ 47,361,520 $ 49,539,600 $ 46,119,514

LIABILITIES AND EQUITY:

Noninterest-bearing $ 10,942,071 $ 10,654,288 $ 7,968,769 deposits

Interest-bearing deposits:

Savings 9,395,608 1,759 0.07 9,301,198 4,050 0.17 8,404,460 14,993 0.71

Certificates of 5,784,759 11,580 0.80 6,657,697 18,446 1.10 7,825,573 38,859 1.97 deposit

Checking 7,029,938 1,763 0.10 7,029,914 2,025 0.11 5,891,566 7,614 0.51

Money market 5,478,528 5,828 0.42 5,501,747 7,331 0.53 4,463,476 15,537 1.38

Totalinterest-bearing 27,688,833 20,930 0.30 28,490,556 31,852 0.44 26,585,075 77,003 1.15 deposits

Total deposits 38,630,904 20,930 0.22 39,144,844 31,852 0.32 34,553,844 77,003 0.88

Borrowings:

Short-term 252,749 101 0.16 2,153,030 2,511 0.46 2,585,682 11,403 1.73 borrowings

Long-term 1,253,556 9,027 2.87 910,149 8,918 3.91 1,739,852 12,620 2.87 borrowings

Total borrowings 1,506,305 9,128 2.41 3,063,179 11,429 1.48 4,325,534 24,023 2.19

Totalinterest-bearing 29,195,138 30,058 0.41 31,553,735 43,281 0.55 30,910,609 101,026 1.29 liabilities

Total deposits and 40,137,209 30,058 0.30 42,208,023 43,281 0.41 38,879,378 101,026 1.03 borrowings

Accrued expensesand other 1,517,120 1,633,850 1,549,017 liabilities

Total liabilities 41,654,329 43,841,873 40,428,395

Total TCF FinancialCorporation 5,687,196 5,675,089 5,667,436 shareholders'equity

Non-controllinginterest in 19,995 22,638 23,683 subsidiaries

Total equity 5,707,191 5,697,727 5,691,119

Total liabilities $ 47,361,520 $ 49,539,600 $ 46,119,514 and equity

Net interest spread 3.53 % 3.31 % 3.82 %(FTE)

Net interest income(FTE) and net $ 384,622 3.55 % $ 380,011 3.34 % $ 411,649 3.89 %interest margin(FTE)

Reconciliation toReported Net Interest Income

Net interest incomeand net interest $ 381,394 3.53 % $ 377,167 3.31 % $ 408,753 3.86 %margin (GAAP)

Adjustments fortaxable equivalent

interest^(1)(3)

Loans and leases 2,226 1,764 1,734

Tax-exemptinvestment 1,002 1,080 1,162 securities

Total FTE 3,228 2,844 2,896 adjustments

Net interest incomeand net interest $ 384,622 3.55 % $ 380,011 3.34 % $ 411,649 3.89 %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)

Year Ended

December 31, 2020

December 31, 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

$

379,482

$

13,356

3.52

%

$

210,001

$

6,030

2.87

%

Investment securities held-to-maturity

141,604

1,842

1.30

144,318

2,950

2.04

Investment securities available-for-sale:

Taxable

6,050,684

142,620

2.36

3,516,413

103,077

2.93

Tax-exempt(3)

713,658

20,470

2.87

541,525

14,746

2.72

Loans and leases held-for-sale

351,898

11,394

3.24

336,292

18,599

5.53

Loans and leases(3)(4)

Commercial and industrial

11,924,867

559,783

4.66

8,371,066

519,506

6.18

Commercial real estate

9,547,701

405,173

4.17

5,523,347

298,414

5.33

Lease financing

2,693,493

133,272

4.95

2,570,109

131,547

5.12

Residential mortgage

6,053,036

233,723

3.86

3,902,959

170,706

4.37

Home equity

3,405,718

179,628

5.27

3,272,760

214,116

6.54

Consumer installment

1,412,510

71,392

5.05

1,844,714

101,687

5.51

Total loans and leases(3)(4)

35,037,325

1,582,971

4.49

25,484,955

1,435,976

5.61

Interest-bearing deposits with banks and other

1,352,825

5,096

0.38

534,979

14,326

2.66

Total interest-earning assets

44,027,476

1,777,749

4.01

30,768,483

1,595,704

5.17

Other assets

4,373,462

2,758,447

Total assets

$

48,400,938

$

33,526,930

LIABILITIES AND EQUITY:

Noninterest-bearing deposits

$

9,844,485

$

5,622,092

Interest-bearing deposits:

Savings

9,093,600

28,408

0.31

7,203,987

52,087

0.72

Certificates of deposit

6,812,648

89,835

1.32

6,086,251

122,494

2.01

Checking

6,676,803

11,947

0.18

3,920,613

13,961

0.36

Money market

5,289,371

36,796

0.70

2,729,156

37,615

1.38

Total interest-bearing deposits

27,872,422

166,986

0.60

19,940,007

226,157

1.13

Total deposits

37,716,907

166,986

0.44

25,562,099

226,157

0.88

Borrowings:

Short-term borrowings

2,023,374

17,279

0.84

1,279,073

20,836

1.61

Long-term borrowings

1,459,004

42,996

2.93

1,592,915

51,236

3.19

Total borrowings

3,482,378

60,275

1.72

2,871,988

72,072

2.49

Total interest-bearing liabilities

31,354,800

227,261

0.72

22,811,995

298,229

1.30

Total deposits and borrowings

41,199,285

227,261

0.55

28,434,087

298,229

1.05

Accrued expenses and other liabilities

1,528,080

1,177,805

Total liabilities

42,727,365

29,611,892

Total TCF Financial Corporation shareholders' equity

5,649,567

3,889,204

Non-controlling interest in subsidiaries

24,006

25,834

Total equity

5,673,573

3,915,038

Total liabilities and equity

$

48,400,938

$

33,526,930

Net interest spread (FTE)

3.46

%

4.12

%

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

$

1,550,488

3.50

%

$

1,297,475

4.20

%

Reconciliation to Reported Net Interest Income

Net interest income and net interest margin (GAAP)

$

1,538,401

3.47

%

$

1,289,032

4.17

%

Adjustments for taxable equivalent interest(1)(3)

Loans

7,785

5,348

Tax-exempt investment securities

4,302

3,095

Total FTE adjustments

12,087

8,443

Net interest income and net interest margin (FTE)

$

1,550,488

3.50

%

$

1,297,475

4.20

%

TCF FINANCIAL CORPORATION ANDSUBSIDIARIES

Consolidated Average BalanceSheets, Yields and Rates(Unaudited)

Year Ended

December 31, 2020 December 31, 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 $ 379,482 $ 13,356 3.52 % $ 210,001 $ 6,030 2.87 %Reserve Bank stocks

Investmentsecurities 141,604 1,842 1.30 144,318 2,950 2.04 held-to-maturity

Investmentsecurities available-for-sale:

Taxable 6,050,684 142,620 2.36 3,516,413 103,077 2.93

Tax-exempt^(3) 713,658 20,470 2.87 541,525 14,746 2.72

Loans and leases 351,898 11,394 3.24 336,292 18,599 5.53 held-for-sale

Loans and leases^ (3)(4)

Commercial and 11,924,867 559,783 4.66 8,371,066 519,506 6.18 industrial

Commercial real 9,547,701 405,173 4.17 5,523,347 298,414 5.33 estate

Lease financing 2,693,493 133,272 4.95 2,570,109 131,547 5.12

Residential 6,053,036 233,723 3.86 3,902,959 170,706 4.37 mortgage

Home equity 3,405,718 179,628 5.27 3,272,760 214,116 6.54

Consumer 1,412,510 71,392 5.05 1,844,714 101,687 5.51 installment

Total loans and 35,037,325 1,582,971 4.49 25,484,955 1,435,976 5.61 leases^(3)(4)

Interest-bearingdeposits with banks 1,352,825 5,096 0.38 534,979 14,326 2.66 and other

Totalinterest-earning 44,027,476 1,777,749 4.01 30,768,483 1,595,704 5.17 assets

Other assets 4,373,462 2,758,447

Total assets $ 48,400,938 $ 33,526,930

LIABILITIES AND EQUITY:

Noninterest-bearing $ 9,844,485 $ 5,622,092 deposits

Interest-bearing deposits:

Savings 9,093,600 28,408 0.31 7,203,987 52,087 0.72

Certificates of 6,812,648 89,835 1.32 6,086,251 122,494 2.01 deposit

Checking 6,676,803 11,947 0.18 3,920,613 13,961 0.36

Money market 5,289,371 36,796 0.70 2,729,156 37,615 1.38

Totalinterest-bearing 27,872,422 166,986 0.60 19,940,007 226,157 1.13 deposits

Total deposits 37,716,907 166,986 0.44 25,562,099 226,157 0.88

Borrowings:

Short-term 2,023,374 17,279 0.84 1,279,073 20,836 1.61 borrowings

Long-term 1,459,004 42,996 2.93 1,592,915 51,236 3.19 borrowings

Total borrowings 3,482,378 60,275 1.72 2,871,988 72,072 2.49

Totalinterest-bearing 31,354,800 227,261 0.72 22,811,995 298,229 1.30 liabilities

Total deposits and 41,199,285 227,261 0.55 28,434,087 298,229 1.05 borrowings

Accrued expensesand other 1,528,080 1,177,805 liabilities

Total liabilities 42,727,365 29,611,892

Total TCF FinancialCorporation 5,649,567 3,889,204 shareholders'equity

Non-controllinginterest in 24,006 25,834 subsidiaries

Total equity 5,673,573 3,915,038

Total liabilities $ 48,400,938 $ 33,526,930 and equity

Net interest spread 3.46 % 4.12 %(FTE)

Net interest income(FTE) and net $ 1,550,488 3.50 % $ 1,297,475 4.20 %interest margin(FTE)

Reconciliation to Reported Net Interest Income

Net interest incomeand net interest $ 1,538,401 3.47 % $ 1,289,032 4.17 %margin (GAAP)

Adjustments fortaxable equivalent interest^(1)(3)

Loans 7,785 5,348

Tax-exemptinvestment 4,302 3,095 securities

Total FTE 12,087 8,443 adjustments

Net interest incomeand net interest $ 1,550,488 3.50 % $ 1,297,475 4.20 %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

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30, 2020

Dec. 31, 2019

(Dollars in thousands)

2020

2020

2020

2020

2019

$

%

$

%

ASSETS:

Federal Home Loan Bank and Federal Reserve Bank stocks

$

301,460

$

361,320

$

401,532

$

454,675

$

388,640

$

(59,860

)

(16.6

)%

$

(87,180

)

(22.4

)%

Investment securities held-to-maturity

162,590

135,332

132,054

136,277

140,434

27,258

20.1

22,156

15.8

Investment securities available-for-sale:

Taxable

6,553,126

6,021,643

5,730,762

5,892,006

4,960,520

531,483

8.8

1,592,606

32.1

Tax-exempt

652,743

685,652

743,744

773,468

778,994

(32,909

)

(4.8

)

(126,251

)

(16.2

)

Loans and leases held-for-sale

419,704

490,886

356,671

138,058

1,121,326

(71,182

)

(14.5

)

(701,622

)

(62.6

)

Loans and leases(1) :

Commercial and industrial

11,425,226

11,740,727

12,713,714

11,827,315

10,955,937

(315,501

)

(2.7

)

469,289

4.3

Commercial real estate

9,623,256

9,616,301

9,658,124

9,291,540

9,057,834

6,955

0.1

565,422

6.2

Lease financing

2,700,298

2,679,142

2,712,291

2,682,323

2,616,360

21,156

0.8

83,938

3.2

Residential mortgage

5,788,514

5,987,754

6,326,227

6,113,279

6,023,647

(199,240

)

(3.3

)

(235,133

)

(3.9

)

Home equity

3,202,321

3,399,468

3,509,107

3,514,278

3,604,153

(197,147

)

(5.8

)

(401,832

)

(11.1

)

Consumer installment

1,288,382

1,386,448

1,459,446

1,517,412

1,546,952

(98,066

)

(7.1

)

(258,570

)

(16.7

)

Total loans and

leases(1)

34,027,997

34,809,840

36,378,909

34,946,147

33,804,883

(781,843

)

(2.2

)

223,114

0.7

Interest-bearing deposits with banks and other

706,114

2,572,254

1,587,665

538,971

656,555

(1,866,140

)

(72.5

)

49,559

7.5

Total interest-earning assets

42,823,734

45,076,927

45,331,337

42,879,602

41,851,352

(2,253,193

)

(5.0

)

972,382

2.3

Other assets

4,537,786

4,462,673

4,384,779

4,105,824

4,268,162

75,113

1.7

269,624

6.3

Total assets

$

47,361,520

$

49,539,600

$

49,716,116

$

46,985,426

$

46,119,514

$

(2,178,080

)

(4.4

)%

$

1,242,006

2.7

%

LIABILITIES AND EQUITY:

Noninterest-bearing deposits

$

10,942,071

$

10,654,288

$

9,830,687

$

7,929,933

$

7,968,769

$

287,783

2.7

%

$

2,973,302

37.3

%

Interest-bearing deposits:

Savings

9,395,608

9,301,198

9,082,184

8,589,815

8,404,460

94,410

1.0

991,148

11.8

Certificates of deposit

5,784,759

6,657,697

7,491,502

7,329,632

7,825,573

(872,938

)

(13.1

)

(2,040,814

)

(26.1

)

Checking

7,029,938

7,029,914

6,649,288

5,990,309

5,891,566

24

0.0

1,138,372

19.3

Money market

5,478,528

5,501,747

5,380,547

4,792,248

4,463,476

(23,219

)

(0.4

)

1,015,052

22.7

Total interest-bearing deposits

27,688,833

28,490,556

28,603,521

26,702,004

26,585,075

(801,723

)

(2.8

)

1,103,758

4.2

Total deposits

38,630,904

39,144,844

38,434,208

34,631,937

34,553,844

(513,940

)

(1.3

)

4,077,060

11.8

Borrowings:

Short-term borrowings

252,749

2,153,030

3,016,490

2,689,262

2,585,682

(1,900,281

)

(88.3

)

(2,332,933

)

(90.2

)

Long-term borrowings

1,253,556

910,149

1,072,394

2,608,204

1,739,852

343,407

37.7

(486,296

)

(28.0

)

Total borrowings

1,506,305

3,063,179

4,088,884

5,297,466

4,325,534

(1,556,874

)

(50.8

)

(2,819,229

)

(65.2

)

Total interest-bearing liabilities

29,195,138

31,553,735

32,692,405

31,999,470

30,910,609

(2,358,597

)

(7.5

)

(1,715,471

)

(5.5

)

Total deposits and borrowings

40,137,209

42,208,023

42,523,092

39,929,403

38,879,378

(2,070,814

)

(4.9

)

1,257,831

3.2

Accrued expenses and other liabilities

1,517,120

1,633,850

1,534,769

1,425,536

1,549,017

(116,730

)

(7.1

)

(31,897

)

(2.1

)

Total liabilities

41,654,329

43,841,873

44,057,861

41,354,939

40,428,395

(2,187,544

)

(5.0

)

1,225,934

3.0

Total TCF Financial Corporation shareholders' equity

5,687,196

5,675,089

5,630,133

5,605,159

5,667,436

12,107

0.2

19,760

0.3

Non-controlling interest in subsidiaries

19,995

22,638

28,122

25,328

23,683

(2,643

)

(11.7

)

(3,688

)

(15.6

)

Total equity

5,707,191

5,697,727

5,658,255

5,630,487

5,691,119

9,464

0.2

16,072

0.3

Total liabilities and equity

$

47,361,520

$

49,539,600

$

49,716,116

$

46,985,426

$

46,119,514

$

(2,178,080

)

(4.4

)%

$

1,242,006

2.7

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Quarterly Average Balance Sheets (Unaudited)



Quarter Ended Change From

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

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

ASSETS:

Federal Home Loan Bank and Federal $ 301,460 $ 361,320 $ 401,532 $ 454,675 $ 388,640 $ (59,860 ) (16.6 ) $ (87,180 ) (22.4 )Reserve Bank stocks % %

Investment securities 162,590 135,332 132,054 136,277 140,434 27,258 20.1 22,156 15.8 held-to-maturity

Investment securities available-for-sale:

Taxable 6,553,126 6,021,643 5,730,762 5,892,006 4,960,520 531,483 8.8 1,592,606 32.1

Tax-exempt 652,743 685,652 743,744 773,468 778,994 (32,909 ) (4.8 ) (126,251 ) (16.2 )

Loans and leases held-for-sale 419,704 490,886 356,671 138,058 1,121,326 (71,182 ) (14.5 ) (701,622 ) (62.6 )

Loans and leases^(1) :

Commercial and industrial 11,425,226 11,740,727 12,713,714 11,827,315 10,955,937 (315,501 ) (2.7 ) 469,289 4.3

Commercial real estate 9,623,256 9,616,301 9,658,124 9,291,540 9,057,834 6,955 0.1 565,422 6.2

Lease financing 2,700,298 2,679,142 2,712,291 2,682,323 2,616,360 21,156 0.8 83,938 3.2

Residential mortgage 5,788,514 5,987,754 6,326,227 6,113,279 6,023,647 (199,240 ) (3.3 ) (235,133 ) (3.9 )

Home equity 3,202,321 3,399,468 3,509,107 3,514,278 3,604,153 (197,147 ) (5.8 ) (401,832 ) (11.1 )

Consumer installment 1,288,382 1,386,448 1,459,446 1,517,412 1,546,952 (98,066 ) (7.1 ) (258,570 ) (16.7 )

Total loans and 34,027,997 34,809,840 36,378,909 34,946,147 33,804,883 (781,843 ) (2.2 ) 223,114 0.7 leases^(1)

Interest-bearing deposits with 706,114 2,572,254 1,587,665 538,971 656,555 (1,866,140 ) (72.5 ) 49,559 7.5 banks and other

Total interest-earning assets 42,823,734 45,076,927 45,331,337 42,879,602 41,851,352 (2,253,193 ) (5.0 ) 972,382 2.3

Other assets 4,537,786 4,462,673 4,384,779 4,105,824 4,268,162 75,113 1.7 269,624 6.3

Total assets $ 47,361,520 $ 49,539,600 $ 49,716,116 $ 46,985,426 $ 46,119,514 $ (2,178,080 ) (4.4 ) $ 1,242,006 2.7 % %

LIABILITIES AND EQUITY:

Noninterest-bearing deposits $ 10,942,071 $ 10,654,288 $ 9,830,687 $ 7,929,933 $ 7,968,769 $ 287,783 2.7 % $ 2,973,302 37.3 %

Interest-bearing deposits:

Savings 9,395,608 9,301,198 9,082,184 8,589,815 8,404,460 94,410 1.0 991,148 11.8

Certificates of deposit 5,784,759 6,657,697 7,491,502 7,329,632 7,825,573 (872,938 ) (13.1 ) (2,040,814 ) (26.1 )

Checking 7,029,938 7,029,914 6,649,288 5,990,309 5,891,566 24 0.0 1,138,372 19.3

Money market 5,478,528 5,501,747 5,380,547 4,792,248 4,463,476 (23,219 ) (0.4 ) 1,015,052 22.7

Total interest-bearing deposits 27,688,833 28,490,556 28,603,521 26,702,004 26,585,075 (801,723 ) (2.8 ) 1,103,758 4.2

Total deposits 38,630,904 39,144,844 38,434,208 34,631,937 34,553,844 (513,940 ) (1.3 ) 4,077,060 11.8

Borrowings:

Short-term borrowings 252,749 2,153,030 3,016,490 2,689,262 2,585,682 (1,900,281 ) (88.3 ) (2,332,933 ) (90.2 )

Long-term borrowings 1,253,556 910,149 1,072,394 2,608,204 1,739,852 343,407 37.7 (486,296 ) (28.0 )

Total borrowings 1,506,305 3,063,179 4,088,884 5,297,466 4,325,534 (1,556,874 ) (50.8 ) (2,819,229 ) (65.2 )

Total interest-bearing liabilities 29,195,138 31,553,735 32,692,405 31,999,470 30,910,609 (2,358,597 ) (7.5 ) (1,715,471 ) (5.5 )

Total deposits and borrowings 40,137,209 42,208,023 42,523,092 39,929,403 38,879,378 (2,070,814 ) (4.9 ) 1,257,831 3.2

Accrued expenses and other 1,517,120 1,633,850 1,534,769 1,425,536 1,549,017 (116,730 ) (7.1 ) (31,897 ) (2.1 )liabilities

Total liabilities 41,654,329 43,841,873 44,057,861 41,354,939 40,428,395 (2,187,544 ) (5.0 ) 1,225,934 3.0

Total TCF Financial Corporation 5,687,196 5,675,089 5,630,133 5,605,159 5,667,436 12,107 0.2 19,760 0.3 shareholders' equity

Non-controlling interest in 19,995 22,638 28,122 25,328 23,683 (2,643 ) (11.7 ) (3,688 ) (15.6 ) subsidiaries

Total equity 5,707,191 5,697,727 5,658,255 5,630,487 5,691,119 9,464 0.2 16,072 0.3

Total liabilities and equity $ 47,361,520 $ 49,539,600 $ 49,716,116 $ 46,985,426 $ 46,119,514 $ (2,178,080 ) (4.4 ) $ 1,242,006 2.7 % %

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

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Dec. 31,

2020

2020

2020

2020

2019

2020

2019

ASSETS:

Federal Home Loan Bank and Federal Reserve Bank stocks

3.77

%

3.27

%

4.38

%

2.79

%

3.24

%

50

bps

53

bps

Investment securities held-to-maturity

1.57

1.69

0.21

1.64

2.53

(12

)

(96

)

Investment securities available-for-sale:

Taxable

2.12

2.33

2.26

2.74

2.85

(21

)

(73

)

Tax-exempt(3)

2.93

2.90

2.81

2.85

2.84

3

9

Loans and leases held-for-sale

2.56

3.13

3.73

4.53

5.58

(57

)

(302

)

Loans and leases(3)

Commercial and industrial

4.51

4.30

4.41

5.42

5.63

21

(112

)

Commercial real estate

3.91

3.90

3.91

5.01

5.38

1

(147

)

Lease financing

4.83

4.88

4.99

5.09

5.11

(5

)

(28

)

Residential mortgage

3.64

3.86

3.93

4.02

4.05

(22

)

(41

)

Home equity

4.93

5.09

5.19

5.85

5.93

(16

)

(100

)

Consumer installment

5.06

5.04

4.88

5.23

4.97

2

9

Total loans and leases(3)

4.28

4.26

4.33

5.08

5.24

2

(96

)

Interest-bearing deposits with banks and other

0.34

0.16

0.30

1.72

2.07

18

(173

)

Total interest-earning assets

3.83

3.72

3.88

4.64

4.85

11

(102

)

LIABILITIES:

Interest-bearing deposits:

Savings

0.07

0.17

0.40

0.64

0.71

(10

)

(64

)

Certificates of deposit

0.80

1.10

1.44

1.81

1.97

(30

)

(117

)

Checking

0.10

0.11

0.14

0.39

0.51

(1

)

(41

)

Money market

0.42

0.53

0.66

1.25

1.38

(11

)

(96

)

Total interest-bearing deposits

0.30

0.44

0.66

1.02

1.15

(14

)

(85

)

Total deposits

0.22

0.32

0.49

0.78

0.88

(10

)

(66

)

Borrowings:

Short-term borrowings

0.16

0.46

0.54

1.56

1.73

(30

)

(157

)

Long-term borrowings

2.87

3.91

3.40

2.42

2.87

(104

)

0

Total borrowings

2.41

1.48

1.29

1.98

2.19

93

22

Total interest-bearing liabilities

0.41

0.55

0.74

1.18

1.29

(14

)

(88

)

Total deposits and borrowings

0.30

0.41

0.57

0.94

1.03

(11

)

(73

)

Net interest margin (GAAP)

3.53

3.31

3.33

3.73

3.86

22

(33

)

Net interest margin (FTE)

3.55

3.34

3.35

3.76

3.89

21

(34

)

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

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



Quarter Ended Change From

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

2020 2020 2020 2020 2019 2020 2019

ASSETS:

Federal Home LoanBank and Federal 3.77 % 3.27 % 4.38 % 2.79 % 3.24 % 50 bps 53 bpsReserve Bank stocks

Investmentsecurities 1.57 1.69 0.21 1.64 2.53 (12 ) (96 ) held-to-maturity

Investmentsecurities available-for-sale:

Taxable 2.12 2.33 2.26 2.74 2.85 (21 ) (73 )

Tax-exempt^(3) 2.93 2.90 2.81 2.85 2.84 3 9

Loans and leases 2.56 3.13 3.73 4.53 5.58 (57 ) (302 ) held-for-sale

Loans and leases^ (3)

Commercial and 4.51 4.30 4.41 5.42 5.63 21 (112 ) industrial

Commercial real 3.91 3.90 3.91 5.01 5.38 1 (147 ) estate

Lease financing 4.83 4.88 4.99 5.09 5.11 (5 ) (28 )

Residential 3.64 3.86 3.93 4.02 4.05 (22 ) (41 ) mortgage

Home equity 4.93 5.09 5.19 5.85 5.93 (16 ) (100 )

Consumer 5.06 5.04 4.88 5.23 4.97 2 9 installment

Total loans and 4.28 4.26 4.33 5.08 5.24 2 (96 ) leases^(3)

Interest-bearingdeposits with banks 0.34 0.16 0.30 1.72 2.07 18 (173 ) and other



Totalinterest-earning 3.83 3.72 3.88 4.64 4.85 11 (102 ) assets



LIABILITIES:

Interest-bearing deposits:



Savings 0.07 0.17 0.40 0.64 0.71 (10 ) (64 )

Certificates of 0.80 1.10 1.44 1.81 1.97 (30 ) (117 ) deposit

Checking 0.10 0.11 0.14 0.39 0.51 (1 ) (41 )

Money market 0.42 0.53 0.66 1.25 1.38 (11 ) (96 )

Totalinterest-bearing 0.30 0.44 0.66 1.02 1.15 (14 ) (85 ) deposits

Total deposits 0.22 0.32 0.49 0.78 0.88 (10 ) (66 )

Borrowings:

Short-term 0.16 0.46 0.54 1.56 1.73 (30 ) (157 ) borrowings

Long-term 2.87 3.91 3.40 2.42 2.87 (104 ) 0 borrowings

Total borrowings 2.41 1.48 1.29 1.98 2.19 93 22



Totalinterest-bearing 0.41 0.55 0.74 1.18 1.29 (14 ) (88 ) liabilities

Total deposits and 0.30 0.41 0.57 0.94 1.03 (11 ) (73 ) borrowings



Net interest margin 3.53 3.31 3.33 3.73 3.86 22 (33 ) (GAAP)

Net interest margin 3.55 3.34 3.35 3.76 3.89 21 (34 ) (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(3) available-for-sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.

TCF FINANCIAL CORPORATION AND SUBSIDIARIESComposition of Loans (Unaudited)

Quarter Ended

Change From

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30, 2020

Dec. 31, 2019

(Dollars in thousands)

2020

2020

2020

2020

2019

$

%

$

%

Commercial and industrial

$

11,422,383

$

11,557,237

$

12,200,721

$

12,326,943

$

11,439,602

$

(134,854

)

(1.2

)%

$

(17,219

)

(0.2

)%

Commercial real estate

9,702,587

9,627,330

9,628,344

9,486,904

9,136,870

75,257

0.8

565,717

6.2

Lease financing

2,817,231

2,724,686

2,707,402

2,708,998

2,699,869

92,545

3.4

117,362

4.3

Total commercial loan and lease portfolio

23,942,201

23,909,253

24,536,467

24,522,845

23,276,341

32,948

0.1

665,860

2.9

Residential mortgage

6,182,045

5,790,251

6,123,118

6,435,314

6,179,805

391,794

6.8

2,240

0.0

Home equity

3,108,736

3,302,983

3,445,584

3,453,502

3,498,907

(194,247

)

(5.9

)

(390,171

)

(11.2

)

Consumer installment

1,233,426

1,341,204

1,430,655

1,509,953

1,542,411

(107,778

)

(8.0

)

(308,985

)

(20.0

)

Total consumer loan portfolio

10,524,207

10,434,438

10,999,357

11,398,769

11,221,123

89,769

0.9

(696,916

)

(6.2

)

Total

$

34,466,408

$

34,343,691

$

35,535,824

$

35,921,614

$

34,497,464

$

122,717

0.4

%

$

(31,056

)

(0.1

)%

TCF FINANCIAL CORPORATION AND SUBSIDIARIESComposition of Loans (Unaudited)



Quarter Ended Change From

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

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

Commercial ) )and $ 11,422,383 $ 11,557,237 $ 12,200,721 $ 12,326,943 $ 11,439,602 $ (134,854 ) (1.2 % $ (17,219 ) (0.2 %industrial

Commercial 9,702,587 9,627,330 9,628,344 9,486,904 9,136,870 75,257 0.8 565,717 6.2 real estate

Lease 2,817,231 2,724,686 2,707,402 2,708,998 2,699,869 92,545 3.4 117,362 4.3 financing

Totalcommercialloan and 23,942,201 23,909,253 24,536,467 24,522,845 23,276,341 32,948 0.1 665,860 2.9 leaseportfolio

Residential 6,182,045 5,790,251 6,123,118 6,435,314 6,179,805 391,794 6.8 2,240 0.0 mortgage

Home equity 3,108,736 3,302,983 3,445,584 3,453,502 3,498,907 (194,247 ) (5.9 ) (390,171 ) (11.2 )

Consumer 1,233,426 1,341,204 1,430,655 1,509,953 1,542,411 (107,778 ) (8.0 ) (308,985 ) (20.0 )installment

Totalconsumer 10,524,207 10,434,438 10,999,357 11,398,769 11,221,123 89,769 0.9 (696,916 ) (6.2 )loanportfolio

Total $ 34,466,408 $ 34,343,691 $ 35,535,824 $ 35,921,614 $ 34,497,464 $ 122,717 0.4 % $ (31,056 ) (0.1 ) %

Composition of Deposits (Unaudited)

Quarter Ended

Change From

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30, 2020

Dec. 31, 2019

(Dollars in thousands)

2020

2020

2020

2020

2019

$

%

$

%

Noninterest-bearing deposits

$

11,036,086

$

10,691,041

$

10,480,245

$

8,237,916

$

7,970,590

$

345,045

3.2

%

$

3,065,496

38.5

%

Interest-bearing deposits:

Savings

9,509,963

9,295,467

9,310,362

8,703,864

8,506,058

214,496

2.3

1,003,905

11.8

Checking

7,222,275

7,453,504

6,693,092

6,289,046

5,966,178

(231,229

)

(3.1

)

1,256,097

21.1

Certificates of deposit

5,524,381

6,334,760

7,142,996

7,463,192

7,455,556

(810,379

)

(12.8

)

(1,931,175

)

(25.9

)

Money market

5,563,614

5,397,325

5,584,177

5,105,285

4,570,081

166,289

3.1

993,533

21.7

Total interest-bearing deposits

27,820,233

28,481,056

28,730,627

27,561,387

26,497,873

(660,823

)

(2.3

)

1,322,360

5.0

Total deposits

$

38,856,319

$

39,172,097

$

39,210,872

$

35,799,303

$

34,468,463

$

(315,778

)

(0.8

)%

$

4,387,856

12.7

%

Composition of Deposits (Unaudited)



Quarter Ended Change From

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

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

Noninterest-bearing $ 11,036,086 $ 10,691,041 $ 10,480,245 $ 8,237,916 $ 7,970,590 $ 345,045 3.2 % $ 3,065,496 38.5 %deposits

Interest-bearing deposits:

Savings 9,509,963 9,295,467 9,310,362 8,703,864 8,506,058 214,496 2.3 1,003,905 11.8

Checking 7,222,275 7,453,504 6,693,092 6,289,046 5,966,178 (231,229 ) (3.1 ) 1,256,097 21.1

Certificates of deposit 5,524,381 6,334,760 7,142,996 7,463,192 7,455,556 (810,379 ) (12.8 ) (1,931,175 ) (25.9 )

Money market 5,563,614 5,397,325 5,584,177 5,105,285 4,570,081 166,289 3.1 993,533 21.7

Total interest-bearing 27,820,233 28,481,056 28,730,627 27,561,387 26,497,873 (660,823 ) (2.3 ) 1,322,360 5.0 deposits

Total deposits $ 38,856,319 $ 39,172,097 $ 39,210,872 $ 35,799,303 $ 34,468,463 $ (315,778 ) (0.8 ) $ 4,387,856 12.7 % %

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data

Allowance for Credit Losses (Unaudited)

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Jan. 1,

Dec. 31,

2020

2020

2020

2020

2020

2019

(Dollars in thousands)

Balance

Reserve

Rate

Balance

Reserve

Rate

Balance

Reserve

Rate

Balance

Reserve

Rate

Adjusted for

adoption

of CECL

Balance

Reserve

Rate

Allowance for loan and lease losses

Commercial and industrial

$

155,665

1.36

%

$

145,814

1.26

%

$

122,024

1.00

%

$

117,507

0.95

%

$

93,884

$

42,430

0.38

%

Commercial real estate

192,331

1.98

197,892

2.06

162,364

1.69

86,209

0.91

67,620

27,308

0.29

Lease financing

40,978

1.45

36,386

1.34

19,041

0.70

27,610

1.02

21,631

14,742

0.55

Residential mortgage

72,315

1.17

62,006

1.07

79,479

1.30

97,185

1.51

72,939

8,099

0.13

Home equity

45,761

1.47

49,003

1.48

56,824

1.65

57,694

1.67

47,003

17,795

0.51

Consumer installment

18,818

1.53

24,128

1.80

21,382

1.49

20,178

1.34

15,967

2,678

0.17

Total allowance for loan and lease losses

525,868

1.53

515,229

1.50

461,114

1.30

406,383

1.13

319,044

113,052

0.33

Reserve for unfunded lending commitments

23,313

34,129

42,788

22,188

18,235

3,528

Total allowance for credit losses

$

549,181

1.59

%

$

549,358

1.60

%

$

503,902

1.42

%

$

428,571

1.19

%

$

337,279

$

116,580

0.34

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data



Allowance for Credit Losses (Unaudited)



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

2020 2020 2020 2020 2020 2019

Adjusted Reserve Reserve Reserve Reserve for Reserve(Dollars in Balance Balance Balance Balance Balancethousands) Rate Rate Rate Rate adoption Rate

of CECL

Allowancefor loan and leaselosses

Commercialand $ 155,665 1.36 % $ 145,814 1.26 % $ 122,024 1.00 % $ 117,507 0.95 % $ 93,884 $ 42,430 0.38 %industrial

Commercial 192,331 1.98 197,892 2.06 162,364 1.69 86,209 0.91 67,620 27,308 0.29 real estate

Lease 40,978 1.45 36,386 1.34 19,041 0.70 27,610 1.02 21,631 14,742 0.55 financing

Residential 72,315 1.17 62,006 1.07 79,479 1.30 97,185 1.51 72,939 8,099 0.13 mortgage

Home equity 45,761 1.47 49,003 1.48 56,824 1.65 57,694 1.67 47,003 17,795 0.51

Consumer 18,818 1.53 24,128 1.80 21,382 1.49 20,178 1.34 15,967 2,678 0.17 installment

Totalallowancefor loan 525,868 1.53 515,229 1.50 461,114 1.30 406,383 1.13 319,044 113,052 0.33 and leaselosses

Reserve forunfunded 23,313 34,129 42,788 22,188 18,235 3,528 lendingcommitments

Totalallowance $ 549,181 1.59 % $ 549,358 1.60 % $ 503,902 1.42 % $ 428,571 1.19 % $ 337,279 $ 116,580 0.34 %for creditlosses

Changes in Allowance for Credit Losses

Quarter Ended

Change From

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Dec. 31,

(Dollars in thousands)

2020

2020

2020

2020

2019

2020

2019

Allowance for loan and lease losses

Balance, beginning of period

$

515,229

$

461,114

$

406,383

$

113,052

$

121,218

$

54,115

$

394,011

Impact of CECL adoption

-

-

-

205,992

-

-

-

Adjusted balance, beginning of period

515,229

461,114

406,383

319,044

121,218

54,115

394,011

Charge-offs

(29,593

)

(32,235

)

(9,958

)

(14,729

)

(16,891

)

2,642

(12,702

)

Recoveries

17,958

7,659

6,563

9,252

10,654

10,299

7,304

Net (charge-offs) recoveries

(11,635

)

(24,576

)

(3,395

)

(5,477

)

(6,237

)

12,941

(5,398

)

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

22,634

78,323

58,126

92,990

14,403

(55,689

)

8,231

Other(2)

(360

)

368

-

(174

)

(16,332

)

(728

)

15,972

Balance, end of period

525,868

515,229

461,114

406,383

113,052

10,639

412,816

Reserve for unfunded lending commitments

Balance, beginning of period

34,129

42,788

22,188

3,528

3,461

(8,659

)

30,668

Impact of CECL adoption

-

-

-

14,707

-

-

-

Adjusted balance, beginning of period

34,129

42,788

22,188

18,235

3,461

(8,659

)

30,668

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

(10,816

)

(8,659

)

20,600

3,953

67

(2,157

)

(10,883

)

Balance, end of period

23,313

34,129

42,788

22,188

3,528

(10,816

)

19,785

Total allowance for credit losses

$

549,181

$

549,358

$

503,902

$

428,571

$

116,580

$

(177

)

$

432,601

Changes in Allowance forCredit Losses



Quarter Ended Change From

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

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

Allowance forloan and lease losses

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

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

Adjustedbalance, 515,229 461,114 406,383 319,044 121,218 54,115 394,011 beginning ofperiod

Charge-offs (29,593 ) (32,235 ) (9,958 ) (14,729 ) (16,891 ) 2,642 (12,702 )

Recoveries 17,958 7,659 6,563 9,252 10,654 10,299 7,304

Net(charge-offs) (11,635 ) (24,576 ) (3,395 ) (5,477 ) (6,237 ) 12,941 (5,398 ) recoveries

Provision forcredit lossesrelated to 22,634 78,323 58,126 92,990 14,403 (55,689 ) 8,231 loans andleases^(1)

Other^(2) (360 ) 368 - (174 ) (16,332 ) (728 ) 15,972

Balance, end 525,868 515,229 461,114 406,383 113,052 10,639 412,816 of period

Reserve forunfunded lendingcommitments

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

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

Adjustedbalance, 34,129 42,788 22,188 18,235 3,461 (8,659 ) 30,668 beginning ofperiod

Provision(benefit) forcredit lossesrelated to (10,816 ) (8,659 ) 20,600 3,953 67 (2,157 ) (10,883 ) unfundedlendingcommitments^(1)

Balance, end 23,313 34,129 42,788 22,188 3,528 (10,816 ) 19,785 of period

Totalallowance for $ 549,181 $ 549,358 $ 503,902 $ 428,571 $ 116,580 $ (177 ) $ 432,601 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

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

2020

2020

2020

2020

2019

(Dollars in thousands)

Balance

Rate(1)

Balance

Rate(1)

Balance

Rate(1)

Balance

Rate(1)

Balance

Rate(1)

Commercial and industrial

$

(672)

0.02

%

$

(22,201)

0.76

%

$

9

-

%

$

(4,022)

0.14

%

$

(5,736)

0.21

%

Commercial real estate

(6,050)

0.25

(144)

0.01

(644)

0.03

563

(0.02)

(7)

-

Lease financing

(1,748)

0.26

(161)

0.02

(1,392)

0.21

(878)

0.13

(1,749)

0.27

Residential mortgage

216

(0.01)

803

(0.05)

(871)

0.06

355

(0.02)

1,552

(0.10)

Home equity

(182)

0.02

(237)

0.03

(335)

0.04

(246)

0.03

2,280

(0.25)

Consumer installment

(3,199)

0.99

(2,636)

0.76

(162)

0.04

(1,249)

0.33

(2,577)

0.67

Total net (charge-offs) recoveries

$

(11,635)

0.14

%

$

(24,576)

0.28

%

$

(3,395)

0.04

%

$

(5,477)

0.06

%

$

(6,237)

0.07

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data (Unaudited), Continued



Net (Charge-offs) Recoveries



Quarter Ended

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

2020 2020 2020 2020 2019

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

Commercial and industrial $ (672) 0.02 % $ (22,201) 0.76 % $ 9 - % $ (4,022) 0.14 % $ (5,736) 0.21 %

Commercial real estate (6,050) 0.25 (144) 0.01 (644) 0.03 563 (0.02) (7) -

Lease financing (1,748) 0.26 (161) 0.02 (1,392) 0.21 (878) 0.13 (1,749) 0.27

Residential mortgage 216 (0.01) 803 (0.05) (871) 0.06 355 (0.02) 1,552 (0.10)

Home equity (182) 0.02 (237) 0.03 (335) 0.04 (246) 0.03 2,280 (0.25)

Consumer installment (3,199) 0.99 (2,636) 0.76 (162) 0.04 (1,249) 0.33 (2,577) 0.67

Total net (charge-offs) $ (11,635) 0.14 % $ (24,576) 0.28 % $ (3,395) 0.04 % $ (5,477) 0.06 % $ (6,237) 0.07 %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

Dec. 31,

Sep. 30,

Jun.

30,

Mar.

31,

Dec.

31,

Sep.

30,

Dec.

31,

2020

2020

2020

2020

2019

2020

2019

Commercial and industrial

0.01

%

0.03

%

0.02

%

-

%

-

%

(2

)

bps

1

bps

Commercial real estate

-

-

-

0.02

0.02

-

(2

)

Lease financing

0.14

0.13

0.18

0.11

0.07

1

7

Residential mortgage

0.03

0.02

0.01

0.01

0.01

1

2

Home equity

-

-

-

0.01

-

-

-

Consumer installment

-

-

-

-

0.01

-

(1

)

Subtotal

0.02

0.02

0.02

0.02

0.01

-

1

Portfolios acquired with deteriorated credit quality(2)

N/A

N/A

N/A

-

10.43

N/A

N/A

Total delinquencies

0.02

%

0.02

%

0.02

%

0.02

%

0.09

%

-

(7

)

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

Change From

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

2020 2020 2020 2020 2019 2020 2019

Commercialand 0.01 % 0.03 % 0.02 % - % - % (2 ) bps 1 bpsindustrial

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

Lease 0.14 0.13 0.18 0.11 0.07 1 7 financing

Residential 0.03 0.02 0.01 0.01 0.01 1 2 mortgage

Home equity - - - 0.01 - - -

Consumer - - - - 0.01 - (1 ) installment

Subtotal 0.02 0.02 0.02 0.02 0.01 - 1

Portfoliosacquired withdeteriorated N/A N/A N/A - 10.43 N/A N/A creditquality^(2)

Total 0.02 % 0.02 % 0.02 % 0.02 % 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

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Dec. 31,

(Dollars in thousands)

2020

2020

2020

2020

2019

2020

2019

Nonaccrual loans and leases:

Commercial and industrial

$

259,439

$

140,492

$

98,184

$

84,157

$

53,812

$

118,947

$

205,627

Commercial real estate

154,439

70,252

57,521

47,032

29,735

84,187

124,704

Lease financing

90,822

42,023

18,756

13,170

10,957

48,799

79,865

Total commercial

504,700

252,767

174,461

144,359

94,504

251,933

410,196

Residential mortgage

97,653

65,235

67,762

61,980

38,577

32,418

59,076

Home equity

69,383

52,184

47,560

43,147

35,863

17,199

33,520

Consumer installment

5,566

6,535

1,668

989

714

(969

)

4,852

Total consumer

172,602

123,954

116,990

106,116

75,154

48,648

97,448

Total nonaccrual loans and leases(1)

677,302

376,721

291,451

250,475

169,658

300,581

507,644

Other real estate owned

33,192

35,554

42,744

38,914

34,256

(2,362

)

(1,064

)

Total nonperforming assets

$

710,494

$

412,275

$

334,195

$

289,389

$

203,914

$

298,219

$

506,580

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

1.97

%

1.10

%

0.82

%

0.70

%

0.49

%

87

bps

148

bps

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

77.64

136.77

158.21

162.24

66.64

(5,913

)

1,100

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

81.08

145.83

172.89

171.10

68.71

(6,475

)

1,237

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

2.06

1.20

0.94

0.80

0.59

86

147

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data (Unaudited), Continued



Nonperforming Assets

Change From

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

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

Nonaccrualloans and leases:

Commercialand $ 259,439 $ 140,492 $ 98,184 $ 84,157 $ 53,812 $ 118,947 $ 205,627 industrial

Commercial 154,439 70,252 57,521 47,032 29,735 84,187 124,704 real estate

Lease 90,822 42,023 18,756 13,170 10,957 48,799 79,865 financing

Total 504,700 252,767 174,461 144,359 94,504 251,933 410,196 commercial

Residential 97,653 65,235 67,762 61,980 38,577 32,418 59,076 mortgage

Home equity 69,383 52,184 47,560 43,147 35,863 17,199 33,520

Consumer 5,566 6,535 1,668 989 714 (969 ) 4,852 installment

Total 172,602 123,954 116,990 106,116 75,154 48,648 97,448 consumer

Totalnonaccrual 677,302 376,721 291,451 250,475 169,658 300,581 507,644 loans andleases^(1)

Other real 33,192 35,554 42,744 38,914 34,256 (2,362 ) (1,064 ) estate owned

Totalnonperforming $ 710,494 $ 412,275 $ 334,195 $ 289,389 $ 203,914 $ 298,219 $ 506,580 assets



Nonaccrualloans andleases as apercentage of 1.97 % 1.10 % 0.82 % 0.70 % 0.49 % 87 bps 148 bpstotal loansand leases^(1)

Allowance forloan andlease lossesas a 77.64 136.77 158.21 162.24 66.64 (5,913 ) 1,100 percentage ofnonaccrualloans andleases^(1)

Allowance forcredit lossesas apercentage of 81.08 145.83 172.89 171.10 68.71 (6,475 ) 1,237 nonaccrualloans andleases^(1)

Nonperformingassets as apercentage oftotal loans 2.06 1.20 0.94 0.80 0.59 86 147 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)

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Dec. 31,

2020

2020

2020

2020

2019

2020

2019

Book value per common share

$

36.06

$

35.88

$

35.91

$

35.85

$

36.20

0.5

%

(0.4

)

%

Tangible book value per common share(1)

26.49

26.27

26.25

26.16

26.60

0.8

(0.4

)

Common equity to assets

11.51

%

11.50

%

10.92

%

11.23

%

11.87

%

1

bps

(36

)

bps

Tangible common equity to tangible assets(1)

8.72

8.68

8.22

8.45

9.01

4

(29

)

Regulatory Capital:(2)

Common equity Tier 1 capital

$

4,103,007

$

4,053,931

$

4,028,681

$

4,026,304

$

4,050,826

1.2

%

1.3

%

Tier 1 capital

4,290,793

4,244,609

4,221,283

4,225,755

4,236,648

1.1

1.3

Total capital

5,026,611

4,972,715

4,907,760

4,744,899

4,681,630

1.1

7.4

Common equity Tier 1 capital ratio

11.45

%

11.45

%

11.06

%

10.44

%

10.99

%

0

bps

46

bps

Tier 1 risk-based capital ratio

11.98

11.98

11.59

10.96

11.49

0

49

Total risk-based capital ratio

14.03

14.04

13.47

12.31

12.70

(1

)133

Tier 1 leverage ratio

9.34

8.83

8.75

9.27

9.49

51

(15

)

Consolidated Capital Information (Unaudited)

Change From

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

Book valueper common $ 36.06 $ 35.88 $ 35.91 $ 35.85 $ 36.20 0.5 % (0.4 ) %share

Tangiblebook value 26.49 26.27 26.25 26.16 26.60 0.8 (0.4 ) per commonshare^(1)

Commonequity to 11.51 % 11.50 % 10.92 % 11.23 % 11.87 % 1 bps (36 ) bpsassets

Tangiblecommonequity to 8.72 8.68 8.22 8.45 9.01 4 (29 ) tangibleassets^(1)



RegulatoryCapital:^ (2)

Commonequity $ 4,103,007 $ 4,053,931 $ 4,028,681 $ 4,026,304 $ 4,050,826 1.2 % 1.3 %Tier 1capital

Tier 1 4,290,793 4,244,609 4,221,283 4,225,755 4,236,648 1.1 1.3 capital

Total 5,026,611 4,972,715 4,907,760 4,744,899 4,681,630 1.1 7.4 capital



CommonequityTier 1 11.45 % 11.45 % 11.06 % 10.44 % 10.99 % 0 bps 46 bpscapitalratio

Tier 1risk-based 11.98 11.98 11.59 10.96 11.49 0 49 capitalratio

Totalrisk-based 14.03 14.04 13.47 12.31 12.70 (1 133 capital )ratio

Tier 1leverage 9.34 8.83 8.75 9.27 9.49 51 (15 ) ratio

(1)

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

(2)

December 31, 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.

December 31, 2020 amounts are preliminary pending completion and filing of(2) 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

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

(Dollars in thousands, except per share data)

2020

2020

2020

2020

2019

Net income available to common shareholders

(a)

$

88,864

$

53,244

$

21,270

$

49,406

$

109,905

Merger-related expenses

31,530

54,011

81,619

36,728

47,025

Notable items:

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

-

-

901

3,063

12,864

Gains on sales of branches, write-down of company-owned vacant land parcels and branch exit costs, net(2)

-

-

(14,166

)

-

3,494

Pension fair valuation adjustment(3)

-

-

-

-

6,341

Loan servicing rights (recovery) impairment(4)

357

154

8,858

8,236

(638

)

Total notable items

357

154

(4,407

)

11,299

22,061

Total merger-related and notable items

31,887

54,165

77,212

48,027

69,086

Related income tax expense, net of benefits(5)

(7,191

)

(11,207

)

(16,114

)

(10,071

)

(19,904

)

Total adjustments, net of tax

24,696

42,958

61,098

37,956

49,182

Adjusted earnings allocated to common stock

(b)

$

113,560

$

96,202

$

82,368

$

87,362

$

159,087

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

(c)

152,084,428

151,821,592

151,660,139

152,114,017

152,658,766

Diluted earnings per common share

(a)/(c)

$

0.58

$

0.35

$

0.14

$

0.32

$

0.72

Adjusted diluted earnings per common share

(b)/(c)

0.75

0.63

0.54

0.57

1.04

Net income attributable to TCF

$

91,358

$

55,738

$

23,764

$

51,899

$

112,399

Total adjustments, net of tax

24,696

42,958

61,098

37,956

49,182

Adjusted net income attributable to TCF

$

116,054

$

98,696

$

84,862

$

89,855

$

161,581

TCF FINANCIAL CORPORATION ANDSUBSIDIARIES

Reconciliation of GAAP to Non-GAAPFinancial Measures (Unaudited)



Computation of adjusted dilutedearnings per common share andadjusted net income:



Quarter Ended

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

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

Net incomeavailable to (a) $ 88,864 $ 53,244 $ 21,270 $ 49,406 $ 109,905 commonshareholders

Merger-related 31,530 54,011 81,619 36,728 47,025 expenses

Notable items:

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

Gains on salesof branches,write-down ofcompany-owned - - (14,166 ) - 3,494 vacant landparcels andbranch exitcosts, net^(2)

Pension fairvaluation - - - - 6,341 adjustment^(3)

Loan servicingrights 357 154 8,858 8,236 (638 ) (recovery)impairment^(4)

Total notable 357 154 (4,407 ) 11,299 22,061 items

Totalmerger-related 31,887 54,165 77,212 48,027 69,086 and notableitems

Related incometax expense, net (7,191 ) (11,207 ) (16,114 ) (10,071 ) (19,904 ) of benefits^(5)

Totaladjustments, net 24,696 42,958 61,098 37,956 49,182 of tax

Adjustedearnings (b) $ 113,560 $ 96,202 $ 82,368 $ 87,362 $ 159,087 allocated tocommon stock



Weighted-averagecommon sharesoutstanding usedin diluted (c) 152,084,428 151,821,592 151,660,139 152,114,017 152,658,766 earnings percommon sharecalculation



Diluted earnings (a)per common share / $ 0.58 $ 0.35 $ 0.14 $ 0.32 $ 0.72 (c)

Adjusted diluted (b)earnings per / 0.75 0.63 0.54 0.57 1.04 common share (c)



Net incomeattributable to $ 91,358 $ 55,738 $ 23,764 $ 51,899 $ 112,399 TCF

Totaladjustments, net 24,696 42,958 61,098 37,956 49,182 of tax

Adjusted netincome $ 116,054 $ 98,696 $ 84,862 $ 89,855 $ 161,581 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).

(2)

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 included within other noninterest expense.

(3)

Included within other noninterest expense.

(4)

Included within other noninterest income.

(5)

Included within income tax expense (benefit).

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(1) 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).

Second quarter 2020 amount included within other noninterest income ($14.7(2) million net gain) and other noninterest expense ($0.6 million). Fourth quarter of 2019 included within other noninterest expense.

(3) Included within other noninterest expense.

(4) Included within other noninterest income.

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

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

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

(Dollars in thousands)

2020

2020

2020

2020

2019

Adjusted net income after tax expense:

Income after tax expense

(a)

$

92,690

$

57,302

$

26,233

$

53,816

$

114,456

Merger-related expenses

31,530

54,011

81,619

36,728

47,025

Notable items

357

154

(4,407

)

11,299

22,061

Related income tax expense, net of tax benefits

(7,191

)

(11,207

)

(16,114

)

(10,071

)

(19,904

)

Adjusted net income after tax expense for adjusted ROAA calculation

(b)

117,386

100,260

87,331

91,772

163,638

Net income available to common shareholders

(c)

88,864

53,244

21,270

49,406

109,905

Other intangibles amortization

5,498

5,498

5,516

5,480

5,505

Related income tax expense

(1,240

)

(1,137

)

(1,151

)

(1,149

)

(1,284

)

Adjusted net income available to common shareholders used in adjusted ROATCE calculation

(d)

93,122

57,605

25,635

53,737

114,126

Adjusted net income available to common shareholders:

Net income available to common shareholders

88,864

53,244

21,270

49,406

109,905

Notable items

357

154

(4,407

)

11,299

22,061

Merger-related expenses

31,530

54,011

81,619

36,728

47,025

Related income tax expense, net of tax benefits

(7,191

)

(11,207

)

(16,114

)

(10,071

)

(19,904

)

Adjusted net income available to common shareholders used in adjusted ROACE calculation

(e)

113,560

96,202

82,368

87,362

159,087

Other intangibles amortization

5,498

5,498

5,516

5,480

5,505

Related income tax expense

(1,240

)

(1,137

)

(1,151

)

(1,149

)

(1,284

)

Adjusted net income available to common shareholders used in adjusted ROATCE calculation

(f)

117,818

100,563

86,733

91,693

163,308

Average balances:

Average assets

(g)

47,361,520

49,539,600

49,716,116

46,985,426

46,119,514

Total equity

5,707,191

5,697,727

5,658,255

5,630,487

5,691,119

Non-controlling interest in subsidiaries

(19,995

)

(22,638

)

(28,122

)

(25,328

)

(23,683

)

Total TCF Financial Corporation shareholders' equity

5,687,196

5,675,089

5,630,133

5,605,159

5,667,436

Preferred stock

(169,302

)

(169,302

)

(169,302

)

(169,302

)

(169,302

)

Average total common shareholders' equity used in ROACE calculation

(h)

5,517,894

5,505,787

5,460,831

5,435,857

5,498,134

Goodwill, net

(1,313,046

)

(1,313,046

)

(1,313,046

)

(1,301,080

)

(1,266,166

)

Other intangibles, net

(149,140

)

(155,142

)

(160,841

)

(166,298

)

(211,294

)

Average tangible common shareholders' equity used in ROATCE calculation

(i)

$

4,055,708

$

4,037,599

$

3,986,944

$

3,968,479

$

4,020,674

ROAA(1)

(a)/(g)

0.78

%

0.46

%

0.21

%

0.46

%

0.99

%

Adjusted ROAA(1)

(b)/(g)

0.99

0.81

0.70

0.78

1.42

ROACE(1)

(c)/(h)

6.44

3.87

1.56

3.64

8.00

Adjusted ROACE(1)

(e)/(h)

8.23

6.99

6.03

6.43

11.57

ROATCE(1)

(d)/(i)

9.18

5.71

2.57

5.42

11.35

Adjusted ROATCE(1)

(f)/(i)

11.62

9.96

8.70

9.24

16.25

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

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

(Dollars in 2020 2020 2020 2020 2019 thousands)

Adjusted net income after tax expense:

Income after tax (a) $ 92,690 $ 57,302 $ 26,233 $ 53,816 $ 114,456 expense

Merger-related 31,530 54,011 81,619 36,728 47,025 expenses

Notable items 357 154 (4,407 ) 11,299 22,061

Related income taxexpense, net of tax (7,191 ) (11,207 ) (16,114 ) (10,071 ) (19,904 ) benefits

Adjusted net incomeafter tax expense (b) 117,386 100,260 87,331 91,772 163,638 for adjusted ROAAcalculation

Net income availableto common (c) 88,864 53,244 21,270 49,406 109,905 shareholders

Other intangibles 5,498 5,498 5,516 5,480 5,505 amortization

Related income tax (1,240 ) (1,137 ) (1,151 ) (1,149 ) (1,284 ) expense

Adjusted net incomeavailable to commonshareholders used in (d) 93,122 57,605 25,635 53,737 114,126 adjusted ROATCEcalculation



Adjusted net incomeavailable to common shareholders:

Net income availableto common 88,864 53,244 21,270 49,406 109,905 shareholders

Notable items 357 154 (4,407 ) 11,299 22,061

Merger-related 31,530 54,011 81,619 36,728 47,025 expenses

Related income taxexpense, net of tax (7,191 ) (11,207 ) (16,114 ) (10,071 ) (19,904 ) benefits

Adjusted net incomeavailable to commonshareholders used in (e) 113,560 96,202 82,368 87,362 159,087 adjusted ROACEcalculation

Other intangibles 5,498 5,498 5,516 5,480 5,505 amortization

Related income tax (1,240 ) (1,137 ) (1,151 ) (1,149 ) (1,284 ) expense

Adjusted net incomeavailable to commonshareholders used in (f) 117,818 100,563 86,733 91,693 163,308 adjusted ROATCEcalculation

Average balances:

Average assets (g) 47,361,520 49,539,600 49,716,116 46,985,426 46,119,514

Total equity 5,707,191 5,697,727 5,658,255 5,630,487 5,691,119

Non-controllinginterest in (19,995 ) (22,638 ) (28,122 ) (25,328 ) (23,683 ) subsidiaries

Total TCF FinancialCorporation 5,687,196 5,675,089 5,630,133 5,605,159 5,667,436 shareholders' equity

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

Average total commonshareholders' equity (h) 5,517,894 5,505,787 5,460,831 5,435,857 5,498,134 used in ROACEcalculation

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

Other intangibles, (149,140 ) (155,142 ) (160,841 ) (166,298 ) (211,294 ) net

Average tangiblecommon shareholders' (i) $ 4,055,708 $ 4,037,599 $ 3,986,944 $ 3,968,479 $ 4,020,674 equity used inROATCE calculation



(a)ROAA^(1) / 0.78 % 0.46 % 0.21 % 0.46 % 0.99 % (g)

(b)Adjusted ROAA^(1) / 0.99 0.81 0.70 0.78 1.42 (g)

(c)ROACE^(1) / 6.44 3.87 1.56 3.64 8.00 (h)

(e)Adjusted ROACE^(1) / 8.23 6.99 6.03 6.43 11.57 (h)

(d)ROATCE^(1) / 9.18 5.71 2.57 5.42 11.35 (i)

(f)Adjusted ROATCE^(1) / 11.62 9.96 8.70 9.24 16.25 (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

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

(Dollars in thousands)

2020

2020

2020

2020

2019

Noninterest expense

(a)

$

379,091

$

373,440

$

400,241

$

374,599

$

416,571

Merger-related expenses

(31,530

)

(54,011

)

(81,619

)

(36,728

)

(47,025

)

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

-

-

(551

)

-

(3,494

)

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

347,561

319,429

317,170

334,808

355,041

Lease financing equipment depreciation

(18,610

)

(17,932

)

(18,212

)

(18,450

)

(18,629

)

Amortization of intangibles

(5,498

)

(5,498

)

(5,516

)

(5,480

)

(5,505

)

Historic tax credit amortization

(3,591

)

(1,758

)

(179

)

(1,521

)

(4,030

)

Adjusted noninterest expense, efficiency ratio

(b)

319,862

294,241

293,263

309,357

326,877

Net interest income

381,394

377,167

378,359

401,481

408,753

Noninterest income

127,236

118,810

133,054

136,963

158,052

Total revenue

(c)

508,630

495,977

511,413

538,444

566,805

Noninterest income

127,236

118,810

133,054

136,963

158,052

Gain on sales of branches

-

-

(14,717

)

-

-

Sale of Legacy TCF auto finance portfolio

-

-

-

-

8,194

Loan servicing rights impairment (recovery)

357

154

8,858

8,236

(638

)

Adjusted noninterest income

127,593

118,964

127,195

145,199

165,608

Net interest income

381,394

377,167

378,359

401,481

408,753

Net interest income FTE adjustment

3,228

2,844

3,032

2,983

2,896

Adjusted net interest income (FTE)

384,622

380,011

381,391

404,464

411,649

Lease financing equipment depreciation

(18,610

)

(17,932

)

(18,212

)

(18,450

)

(18,629

)

Adjusted total revenue, efficiency ratio

(d)

$

493,605

$

481,043

$

490,374

$

531,213

$

558,628

Efficiency ratio

(a)/(c)

74.53

%

75.29

%

78.26

%

69.57

%

73.49

%

Adjusted efficiency ratio

(b)/(d)

64.80

61.17

59.80

58.24

58.51

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

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

(Dollars in 2020 2020 2020 2020 2019 thousands)

Noninterest (a) $ 379,091 $ 373,440 $ 400,241 $ 374,599 $ 416,571 expense

Merger-related (31,530 ) (54,011 ) (81,619 ) (36,728 ) (47,025 ) expenses

Write-down ofcompany-ownedvacant land - - (551 ) - (3,494 ) parcels and branchexit costs

Expenses relatedto the sale of - - (901 ) (3,063 ) (4,670 ) Legacy TCF autofinance portfolio

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

Adjustednoninterest 347,561 319,429 317,170 334,808 355,041 expense

Lease financingequipment (18,610 ) (17,932 ) (18,212 ) (18,450 ) (18,629 ) depreciation

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

Historic taxcredit (3,591 ) (1,758 ) (179 ) (1,521 ) (4,030 ) amortization

Adjustednoninterest (b) 319,862 294,241 293,263 309,357 326,877 expense,efficiency ratio



Net interest 381,394 377,167 378,359 401,481 408,753 income

Noninterest income 127,236 118,810 133,054 136,963 158,052

Total revenue (c) 508,630 495,977 511,413 538,444 566,805



Noninterest income 127,236 118,810 133,054 136,963 158,052

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

Sale of Legacy TCFauto finance - - - - 8,194 portfolio

Loan servicingrights impairment 357 154 8,858 8,236 (638 ) (recovery)

Adjusted 127,593 118,964 127,195 145,199 165,608 noninterest income

Net interest 381,394 377,167 378,359 401,481 408,753 income

Net interestincome FTE 3,228 2,844 3,032 2,983 2,896 adjustment

Adjusted netinterest income 384,622 380,011 381,391 404,464 411,649 (FTE)

Lease financingequipment (18,610 ) (17,932 ) (18,212 ) (18,450 ) (18,629 ) depreciation

Adjusted totalrevenue, (d) $ 493,605 $ 481,043 $ 490,374 $ 531,213 $ 558,628 efficiency ratio



(a)Efficiency ratio / 74.53 % 75.29 % 78.26 % 69.57 % 73.49 % (c)

Adjusted (b)efficiency ratio / 64.80 61.17 59.80 58.24 58.51 (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

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

(Dollars in thousands)

2020

2020

2020

2020

2019

Net interest income

$

381,394

$

377,167

$

378,359

$

401,481

$

408,753

Adjustments for taxable equivalent interest (FTE)

3,228

2,844

3,032

2,983

2,896

Net interest income (FTE)

384,622

380,011

381,391

404,464

411,649

Purchase accounting accretion and amortization

(22,997

)

(17,710

)

(18,209

)

(25,258

)

(30,523

)

Net fees recognized on PPP loans

(16,071

)

(11,886

)

(7,805

)

-

-

Interest recognition on PPP loans(1)

(3,051

)

(2,824

)

(1,759

)

-

-

Total PPP loans impact

(19,122

)

(14,710

)

(9,564

)

-

-

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

$

342,503

$

347,591

$

353,618

$

379,206

$

381,126

Net interest margin (GAAP)

3.53

%

3.31

%

3.33

%

3.73

%

3.86

%

FTE impact

0.02

0.03

0.02

0.03

0.03

Net interest margin (FTE)

3.55

3.34

3.35

3.76

3.89

Purchase accounting accretion and amortization impact

(0.21

)

(0.16

)

(0.16

)

(0.23

)

(0.29

)

PPP loans impact(2)

(0.04

)

0.01

0.01

-

-

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

3.30

%

3.19

%

3.20

%

3.53

%

3.60

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

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



Computation of adjusted net interest income andmargin:



Quarter Ended

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

(Dollars in 2020 2020 2020 2020 2019 thousands)

Net interest $ 381,394 $ 377,167 $ 378,359 $ 401,481 $ 408,753 income

Adjustmentsfor taxableequivalent 3,228 2,844 3,032 2,983 2,896 interest(FTE)

Net interest 384,622 380,011 381,391 404,464 411,649 income (FTE)

Purchaseaccountingaccretion (22,997 ) (17,710 ) (18,209 ) (25,258 ) (30,523 ) andamortization

Net feesrecognized (16,071 ) (11,886 ) (7,805 ) - - on PPP loans

Interestrecognition (3,051 ) (2,824 ) (1,759 ) - - on PPP loans^(1)

Total PPP (19,122 ) (14,710 ) (9,564 ) - - loans impact

Adjusted netinterestincome,includingFTEadjustmentandexcluding $ 342,503 $ 347,591 $ 353,618 $ 379,206 $ 381,126 purchaseaccountingaccretionandamortizationand PPPimpact

Net interestmargin 3.53 % 3.31 % 3.33 % 3.73 % 3.86 %(GAAP)

FTE impact 0.02 0.03 0.02 0.03 0.03

Net interest 3.55 3.34 3.35 3.76 3.89 margin (FTE)

Purchaseaccountingaccretion (0.21 ) (0.16 ) (0.16 ) (0.23 ) (0.29 ) andamortizationimpact

PPP loans (0.04 ) 0.01 0.01 - - impact^(2)

Adjusted netinterestmargin,excludingpurchaseaccounting 3.30 % 3.19 % 3.20 % 3.53 % 3.60 %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 $1.7 billion and $1.8 billion in the fourth and third 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) $1.7 billion and $1.8 billion in the fourth and third quarters of 2020, respectively.

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

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

(Dollars in thousands, except per share data)

2020

2020

2020

2020

2019

Total equity

$

5,689,297

$

5,658,420

$

5,658,555

$

5,655,833

$

5,727,241

Non-controlling interest in subsidiaries

(18,484

)

(21,376

)

(23,300

)

(30,149

)

(20,226

)

Total TCF Financial Corporation shareholders' equity

5,670,813

5,637,044

5,635,255

5,625,684

5,707,015

Preferred stock

(169,302

)

(169,302

)

(169,302

)

(169,302

)

(169,302

)

Total common stockholders' equity

(a)

5,501,511

5,467,742

5,465,953

5,456,382

5,537,713

Goodwill, net

(1,313,046

)

(1,313,046

)

(1,313,046

)

(1,313,046

)

(1,299,878

)

Other intangibles, net

(146,377

)

(151,875

)

(157,373

)

(162,887

)

(168,368

)

Tangible common shareholders' equity

(b)

4,042,088

4,002,821

3,995,534

3,980,449

4,069,467

Total assets

(c)

47,802,487

47,565,789

50,062,460

48,594,383

46,651,553

Goodwill, net

(1,313,046

)

(1,313,046

)

(1,313,046

)

(1,313,046

)

(1,299,878

)

Other intangibles, net

(146,377

)

(151,875

)

(157,373

)

(162,887

)

(168,368

)

Tangible assets

(d)

$

46,343,064

$

46,100,868

$

48,592,041

$

47,118,450

$

45,183,307

Common stock shares outstanding

(e)

152,565,504

152,379,722

152,233,106

152,185,984

152,965,571

Common equity to assets

(a) / (c)

11.51

%

11.50

%

10.92

%

11.23

%

11.87

%

Tangible common equity to tangible assets

(b) / (d)

8.72

8.68

8.22

8.45

9.01

Book value per common share

(a) / (e)

$

36.06

$

35.88

$

35.91

$

35.85

$

36.20

Tangible book value per common share

(b) / (e)

26.49

26.27

26.25

26.16

26.60

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



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

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

Total equity $ 5,689,297 $ 5,658,420 $ 5,658,555 $ 5,655,833 $ 5,727,241

Non-controllinginterest in (18,484 ) (21,376 ) (23,300 ) (30,149 ) (20,226 ) subsidiaries

Total TCFFinancialCorporation 5,670,813 5,637,044 5,635,255 5,625,684 5,707,015 shareholders'equity

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

Total commonstockholders' (a) 5,501,511 5,467,742 5,465,953 5,456,382 5,537,713 equity

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

Otherintangibles, (146,377 ) (151,875 ) (157,373 ) (162,887 ) (168,368 ) net

Tangible commonshareholders' (b) 4,042,088 4,002,821 3,995,534 3,980,449 4,069,467 equity



Total assets (c) 47,802,487 47,565,789 50,062,460 48,594,383 46,651,553

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

Otherintangibles, (146,377 ) (151,875 ) (157,373 ) (162,887 ) (168,368 ) net

Tangible assets (d) $ 46,343,064 $ 46,100,868 $ 48,592,041 $ 47,118,450 $ 45,183,307



Common stockshares (e) 152,565,504 152,379,722 152,233,106 152,185,984 152,965,571 outstanding



Common equity (a)to assets / 11.51 % 11.50 % 10.92 % 11.23 % 11.87 % (c)

Tangible common (b)equity to / 8.72 8.68 8.22 8.45 9.01 tangible assets (d)



Book value per (a)common share / $ 36.06 $ 35.88 $ 35.91 $ 35.85 $ 36.20 (e)

Tangible book (b)value per / 26.49 26.27 26.25 26.16 26.60 common 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

Dec. 31,

Sep. 30,

Sep. 30, 2020

(Dollars in thousands)

2020

2020

$

%

Commercial and industrial

$

11,422,383

$

11,557,237

$

(134,854

)

(1.2

)%

Commercial real estate

9,702,587

9,627,330

75,257

0.8

Lease financing

2,817,231

2,724,686

92,545

3.4

Total commercial loan and lease portfolio

23,942,201

23,909,253

32,948

0.1

Residential mortgage

6,182,045

5,790,251

391,794

6.8

Home equity

3,108,736

3,302,983

(194,247

)

(5.9

)

Consumer installment

1,233,426

1,341,204

(107,778

)

(8.0

)

Total consumer loan portfolio

10,524,207

10,434,438

89,769

0.9

Total loans and leases

34,466,408

34,343,691

122,717

0.4

PPP (Commercial and industrial)

1,553,908

1,836,850

(282,942

)

(15.4

)

Loans and leases excluding PPP loans

Commercial and industrial

9,868,475

9,720,387

148,088

1.5

Commercial real estate

9,702,587

9,627,330

75,257

0.8

Lease financing

2,817,231

2,724,686

92,545

3.4

Total commercial loan and lease portfolio

22,388,293

22,072,403

315,890

1.4

Residential mortgage

6,182,045

5,790,251

391,794

6.8

Home equity

3,108,736

3,302,983

(194,247

)

(5.9

)

Consumer installment

1,233,426

1,341,204

(107,778

)

(8.0

)

Total consumer loan portfolio

10,524,207

10,434,438

89,769

0.9

Total loans and leases, excluding PPP loans

$

32,912,500

$

32,506,841

$

405,659

1.2

%

Allowance for credit losses

$

549,181

$

549,358

$

(177

)

-

%

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

1.59

%

1.60

%

(1

)

bp

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

1.67

1.69

(2

)

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Source: TCF Financial Corporation

View source version on businesswire.com: https://www.businesswire.com/news/home/20210122005246/en/

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