Business Wire | Apr 22, 2021 09:04AM EDT

TCF Reports First Quarter 2021 Results

Apr. 22, 2021

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

First Quarter 2021 Highlights

* Quarterly net income of $123.3 million, or $0.79 per diluted share, up 35.0% from the fourth quarter of 2020 * Adjusted diluted earnings per common share of $0.84(1), up 12.0% from the fourth quarter of 2020. Adjusted diluted earnings per common share excludes $6.7 million, or $0.04 per share, after-tax impact of merger-related expenses and notable items * Loan and lease balances grew $1.8 billion, or 5.1%, from December 31, 2020. Loan and lease balances, excluding PPP loans(1), grew $1.4 billion, or 4.4%, from December 31, 2020 * Deposit balances grew $930 million, or 2.4%, from December 31, 2020 * Provision for credit losses of $20.6 million, up 73.9% from the fourth quarter of 2020, primarily reflects loan and lease growth * Allowance for credit losses, which includes the reserve for unfunded lending commitments, of 1.45% of total loans and leases, compared to 1.59% at December 31, 2020 * Nonaccrual loans and leases of $677.9 million, relatively stable compared to December 31, 2020 * Net charge-offs of $43.3 million, or 0.49% of average loans and leases (annualized) * Efficiency ratio of 67.85%, improved 668 basis points from the fourth quarter of 2020. Adjusted efficiency ratio of 62.69%(1), improved 211 basis points from the fourth quarter of 2020 * Common equity Tier 1 capital ratio of 11.06%, compared to 11.45% at December 31, 2020 * On January 29, 2021, TCF acquired BB&T Commercial Equipment Capital, Corp. ("CEC"), which included a portfolio of $1.0 billion of equipment finance loans and leases * On March 25, 2021, TCF shareholders approved the announced merger with Huntington Bancshares Incorporated ("Huntington"), which is expected to close in the second quarter of 2021, subject to regulatory approval

Merger-related Expenses and Notable items in the First Quarter of 2021 and Fourth Quarter of 2020(1)

* Pre-tax merger-related expenses of $16.2 million, $12.7 million net of tax, or $0.08 per diluted common share for the first quarter of 2021, compared to 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 * Pre-tax benefit of $7.6 million, $6.0 million net of tax, related to notable items for the first quarter of 2021, compared to pre-tax expenses of $357 thousand, $276 thousand net of tax, related to notable items for the fourth 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

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Mar. 31,

(Dollars in thousands, except per share data)

2021

2020

2020

2020

2020

2020

2020

Financial Results

Net income attributable to TCF

$

123,336

$

91,358

$

55,738

$

23,764

$

51,899

35.0

%

137.6

%

Net interest income

381,827

381,394

377,167

378,359

401,481

0.1

(4.9)

Basic earnings per common share

$

0.79

$

0.58

$

0.35

$

0.14

$

0.33

36.2

139.4

Diluted earnings per common share

0.79

0.58

0.35

0.14

0.32

36.2

146.9

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

1.03

%

0.78

%

0.46

%

0.21

%

0.46

%

25

bps

57

bps

ROACE(1)

8.78

6.44

3.87

1.56

3.64

234

514

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

12.51

9.18

5.71

2.57

5.42

333

709

Net interest margin

3.45

3.53

3.31

3.33

3.73

(8)

(28)

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

3.47

3.55

3.34

3.35

3.76

(8)

(29)

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

0.49

0.14

0.28

0.04

0.06

35

43

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

1.96

2.06

1.20

0.94

0.80

(10)

116

Efficiency ratio

67.85

74.53

75.29

78.26

69.57

(668)

(172)

Adjusted Financial Results (non-GAAP)

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

$

130,074

$

116,054

$

98,696

$

84,862

$

89,855

12.1

%

44.8

%

Adjusted diluted earnings per common

share(2)

$

0.84

$

0.75

$

0.63

$

0.54

$

0.57

12.0

47.4

Adjusted ROAA(1)(2)

1.08

%

0.99

%

0.81

%

0.70

%

0.78

%

9

bps

30

bps

Adjusted ROACE(1)(2)

9.27

8.23

6.99

6.03

6.43

104

284

Adjusted ROATCE(1)(2)

13.18

11.62

9.96

8.70

9.24

156

394

Adjusted efficiency ratio(2)

62.69

64.80

61.17

59.80

58.24

(211)

445

Summary of Financial Results

At or For the Quarter Ended Change From

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

(Dollars inthousands, 2021 2020 2020 2020 2020 2020 2020except pershare data)

Financial Results

Net incomeattributable $ 123,336 $ 91,358 $ 55,738 $ 23,764 $ 51,899 35.0 % 137.6 %to TCF

Net interest 381,827 381,394 377,167 378,359 401,481 0.1 (4.9) income

Basicearnings per $ 0.79 $ 0.58 $ 0.35 $ 0.14 $ 0.33 36.2 139.4 common share

Dilutedearnings per 0.79 0.58 0.35 0.14 0.32 36.2 146.9 common share

Return onaverage 1.03 % 0.78 % 0.46 % 0.21 % 0.46 % 25 bps 57 bpsassets("ROAA")^(1)

ROACE^(1) 8.78 6.44 3.87 1.56 3.64 234 514

ROATCE(non-GAAP)^ 12.51 9.18 5.71 2.57 5.42 333 709 (1)(2)

Net interest 3.45 3.53 3.31 3.33 3.73 (8) (28) margin

Net interestmargin (FTE)^ 3.47 3.55 3.34 3.35 3.76 (8) (29) (1)(2)

Netcharge-offsas apercentage of 0.49 0.14 0.28 0.04 0.06 35 43 average loansand leases^(1)

Nonperformingassets as apercentage oftotal loans 1.96 2.06 1.20 0.94 0.80 (10) 116 and leasesand otherreal estateowned

Efficiency 67.85 74.53 75.29 78.26 69.57 (668) (172) ratio

AdjustedFinancial Results(non-GAAP)

Adjusted netincome $ 130,074 $ 116,054 $ 98,696 $ 84,862 $ 89,855 12.1 % 44.8 %attributableto TCF^(1)(2)

Adjusteddilutedearnings per $ 0.84 $ 0.75 $ 0.63 $ 0.54 $ 0.57 12.0 47.4 common

share^(2)

Adjusted ROAA 1.08 % 0.99 % 0.81 % 0.70 % 0.78 % 9 bps 30 bps^(1)(2)

Adjusted 9.27 8.23 6.99 6.03 6.43 104 284 ROACE^(1)(2)

Adjusted 13.18 11.62 9.96 8.70 9.24 156 394 ROATCE^(1)(2)

Adjustedefficiency 62.69 64.80 61.17 59.80 58.24 (211) 445 ratio^(2)

(1)Annualized.

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

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.

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

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 March 31, 2021 For the Quarter Ended December 31, 2020

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

Merger-related $ (16,216 ) $ (12,736 ) $ (0.08 ) $ (31,530 ) (24,420 ) $ (0.17 )expenses

Notable items:

Loan servicingrightsrecovery 7,637 5,998 0.04 (357 ) (276 ) - (impairment)^(2)

Total notable 7,637 5,998 0.04 (357 ) (276 ) - items

Totalmerger-related $ (8,579 ) $ (6,738 ) $ (0.04 ) $ (31,887 ) $ (24,696 ) $ (0.17 )and notableitems

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

(2)Included within other mortgage banking income.

TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ: TCF) today reported net income of $123.3 million, or diluted earnings per common share of $0.79, for the first quarter of 2021, compared with $91.4 million, or diluted earnings per common share of $0.58, for the fourth quarter of 2020. Adjusted net income was $130.1 million, or $0.84 per diluted common share for the first quarter of 2021, compared with $116.1 million, or $0.75 per diluted common share, for the fourth quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

"Our first quarter performance was highlighted by strong balance sheet growth as our teams remained focused on taking care of our customers, while we also continued preparing for the closing of our merger with Huntington," said David T. Provost, chief executive officer. "We were pleased by the overwhelming shareholder approval of the pending merger with Huntington. With the transaction on track to close later in the second quarter of 2021, we look forward to delivering enhanced shareholder value through our greater Midwest market share, increased scale, broader product set, and enhanced technology capabilities and investments."

"We continued to execute on our business strategy during the quarter as we generated strong loan and lease growth driven by our commercial portfolios," said Thomas C. Shafer, vice chairman and chief executive officer of TCF National Bank. "This growth included the acquisition of an equipment finance company in January, further bolstering our team of talented and experienced professionals, which we believe will continue to provide incremental growth opportunities going forward. In addition, we saw strong deposit growth driven by noninterest-bearing deposit inflows during the quarter, which helped to further reduce our overall cost of deposits. As we continue to operate our business and serve our customers today, we will be well positioned to transition our business into Huntington when the merger closes."

Net Interest Income and Net Interest Margin

Net interest income was $381.8 million for the first quarter of 2021, an increase of $0.4 million, or 0.1%, from the fourth quarter of 2020. Purchase accounting accretion and amortization related to the TCF/Chemical merger included in net interest income was $15.0 million for the first quarter of 2021, compared to $23.0 million for the fourth quarter of 2020. At March 31, 2021, the remaining fair value discount from purchase accounting on acquired loans totaled $91.1 million. Additionally, net interest income recorded for the first quarter of 2021 included $17.8 million of interest and fee income from PPP less funding costs, compared to $19.1 million for the fourth quarter of 2020. Adjusted net interest income (FTE), excluding purchase accounting accretion and amortization and the impact from PPP loans, a non-GAAP financial measure, was $351.8 million for the first quarter of 2021, compared to $342.5 million for the fourth quarter of 2020.

Net interest margin was 3.45% for the first quarter of 2021, compared to 3.53% in the fourth quarter of 2020, while net interest margin on a fully tax-equivalent basis (FTE), a non-GAAP financial measure, was 3.47%, down 8 basis points from the fourth quarter of 2020. Adjusted net interest margin (FTE), a non-GAAP financial measure, was 3.30% for the first quarter of 2021, consistent with the fourth quarter of 2020. Adjusted net interest margin (FTE) excluded a 14 basis point impact related to purchase accounting accretion and amortization related to the TCF/Chemical merger and a three basis point impact related to PPP loans. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables for reconciliations of our noted non-GAAP measures. The decrease in net interest margin from the fourth quarter of 2020 was primarily driven by lower purchase accounting accretion and new loan and lease originations at lower yields than loan and lease runoff, partially offset by lower cost of funds. Deposit costs continued to reprice lower as they declined from 0.22% in the fourth quarter of 2020 to 0.14% in the first quarter of 2021.

Noninterest Income

Noninterest income was $132.1 million for the first quarter of 2021, an increase of $4.8 million, or 3.8%, from the fourth quarter of 2020. Noninterest income for the first quarter of 2021 included a notable item of a $7.6 million loan servicing rights recovery of impairment, included in mortgage banking income. Noninterest income for the fourth quarter of 2020 included a notable item of a $357 thousand loan servicing rights impairment, included in mortgage banking income. Adjusted noninterest income, a non-GAAP financial measure that excludes the identified notable items, for the first quarter of 2021 was $124.4 million, compared to $127.6 million in the fourth quarter of 2020. Noninterest income in the first quarter of 2021, compared to the fourth quarter of 2020, also included an increase of $5.7 million in net gains on sales of loans and leases, a decrease of $3.9 million in fees and service charges on deposit accounts and a decrease of $3.6 million in leasing revenue. Net gains on sales of loans and leases for the first quarter of 2021 included the sale of $17.8 million of consumer nonaccrual loans. The first quarter of 2021 also included a $1.9 million favorable interest rate swap mark-to-market adjustment resulting from changes in the interest rate environment, included in other noninterest income, compared to a favorable interest rate swap mark-to-market adjustment of $2.4 million in the fourth quarter of 2020. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables for reconciliations of our noted non-GAAP measures.

Noninterest Expense

Noninterest expense was $348.7 million for the first quarter of 2021, a decrease of $30.4 million, or 8.0%, from the fourth quarter of 2020. The first quarter of 2021 included $16.2 million of merger-related expenses and $543 thousand of historic tax credit amortization recorded in other noninterest expense. The decrease in the first quarter of 2021 primarily reflected decreases of $17.5 million in compensation and benefits expense and $15.3 million in merger-related expenses, partially offset by increases of $2.1 million in occupancy and equipment expense and $1.8 million in lease financing equipment depreciation. The decrease in compensation and benefits expense was primarily due to executive severance expense recognized in the fourth quarter of 2020 and a decrease in commissions and incentives expense, partially offset by an increase in payroll taxes due to the beginning of a new tax year.

Income Tax Expense

Income tax expense for the first quarter of 2021 was $19.5 million, an effective tax rate of 13.5%, compared to income tax expense of $25.0 million, an effective tax rate of 21.3%, for the fourth quarter of 2020. Income tax expense for the first quarter of 2021 included an additional $11.0 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 income tax rate was 21.1% for the first quarter of 2021.

Credit Quality

Provision for credit losses Provision for credit losses was $20.6 million for the first quarter of 2021, an increase of $8.7 million, from the fourth quarter of 2020. The provision for credit losses in the first quarter of 2021 primarily reflects loan and lease growth and the impact of higher net charge-offs. First quarter 2021 net charge-offs were $43.3 million, compared to $11.6 million in the fourth quarter of 2020.

Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases were 0.49% for the first quarter of 2021, compared to 0.24% for the average of the trailing four quarters. The increase in the first quarter of 2021 was primarily due to charge-offs taken on nonaccrual loans and leases within the commercial and industrial portfolio, as well as the commercial real estate portfolio primarily in the hotel sector.

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 $526.6 million, or 1.45% of total loans and leases, at March 31, 2021, compared to $549.2 million, or 1.59%, at December 31, 2020. The ACL as a percentage of total loans and leases, excluding PPP loans, a non-GAAP financial measure, was 1.53% at March 31, 2021, compared to 1.67% at December 31, 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The PPP loans are individually guaranteed by the Small Business Administration and therefore the accounting under CECL does not require reserves to be recorded on such loans. The decrease in the ACL as a percentage of total loans and leases from December 31, 2020 was primarily due to continued improvement in both current and forecasted macro-economic conditions and benefit from nonaccrual loan sale recoveries.

Nonaccrual loans and leases Nonaccrual loans and leases were $677.9 million at March 31, 2021 and represented 1.87% of total loans and leases, compared to $677.3 million, or 1.97% of total loans and leases, at December 31, 2020.

Nonaccrual loans and leases in the hotel sector were $110.6 million, an increase of $32.0 million from December 31, 2020, while nonaccrual loans in the motor coach sector were $100.2 million, a decrease of $3.9 million from December 31, 2020, and nonaccrual loans and leases in the shuttle bus sector were $37.0 million, an increase of $569 thousand from December 31, 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 continuing into 2021 where necessary, many of which have been moved to nonaccrual status.

Loan and Lease Deferrals Loans and leases on deferral status were $231.0 million at March 31, 2021, a decrease of $98.9 million, or 30.0%, from December 31, 2020. Loans and leases on deferral status included $148.8 million of balances that are included in nonaccrual balances at March 31, 2021, the majority of which have been on deferral for over 180 days.

Balance Sheet

Loans and leases

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

(2) Included within other mortgage banking income.

TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ: TCF) today reported net income of $123.3 million, or diluted earnings per common share of $0.79, for the first quarter of 2021, compared with $91.4 million, or diluted earnings per common share of $0.58, for the fourth quarter of 2020. Adjusted net income was $130.1 million, or $0.84 per diluted common share for the first quarter of 2021, compared with $116.1 million, or $0.75 per diluted common share, for the fourth quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

"Our first quarter performance was highlighted by strong balance sheet growth as our teams remained focused on taking care of our customers, while we also continued preparing for the closing of our merger with Huntington," said David T. Provost, chief executive officer. "We were pleased by the overwhelming shareholder approval of the pending merger with Huntington. With the transaction on track to close later in the second quarter of 2021, we look forward to delivering enhanced shareholder value through our greater Midwest market share, increased scale, broader product set, and enhanced technology capabilities and investments."

"We continued to execute on our business strategy during the quarter as we generated strong loan and lease growth driven by our commercial portfolios," said Thomas C. Shafer, vice chairman and chief executive officer of TCF National Bank. "This growth included the acquisition of an equipment finance company in January, further bolstering our team of talented and experienced professionals, which we believe will continue to provide incremental growth opportunities going forward. In addition, we saw strong deposit growth driven by noninterest-bearing deposit inflows during the quarter, which helped to further reduce our overall cost of deposits. As we continue to operate our business and serve our customers today, we will be well positioned to transition our business into Huntington when the merger closes."

Net Interest Income and Net Interest Margin

Net interest income was $381.8 million for the first quarter of 2021, an increase of $0.4 million, or 0.1%, from the fourth quarter of 2020. Purchase accounting accretion and amortization related to the TCF/Chemical merger included in net interest income was $15.0 million for the first quarter of 2021, compared to $23.0 million for the fourth quarter of 2020. At March 31, 2021, the remaining fair value discount from purchase accounting on acquired loans totaled $91.1 million. Additionally, net interest income recorded for the first quarter of 2021 included $17.8 million of interest and fee income from PPP less funding costs, compared to $19.1 million for the fourth quarter of 2020. Adjusted net interest income (FTE), excluding purchase accounting accretion and amortization and the impact from PPP loans, a non-GAAP financial measure, was $351.8 million for the first quarter of 2021, compared to $342.5 million for the fourth quarter of 2020.

Net interest margin was 3.45% for the first quarter of 2021, compared to 3.53% in the fourth quarter of 2020, while net interest margin on a fully tax-equivalent basis (FTE), a non-GAAP financial measure, was 3.47%, down 8 basis points from the fourth quarter of 2020. Adjusted net interest margin (FTE), a non-GAAP financial measure, was 3.30% for the first quarter of 2021, consistent with the fourth quarter of 2020. Adjusted net interest margin (FTE) excluded a 14 basis point impact related to purchase accounting accretion and amortization related to the TCF/Chemical merger and a three basis point impact related to PPP loans. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables for reconciliations of our noted non-GAAP measures. The decrease in net interest margin from the fourth quarter of 2020 was primarily driven by lower purchase accounting accretion and new loan and lease originations at lower yields than loan and lease runoff, partially offset by lower cost of funds. Deposit costs continued to reprice lower as they declined from 0.22% in the fourth quarter of 2020 to 0.14% in the first quarter of 2021.

Noninterest Income

Noninterest income was $132.1 million for the first quarter of 2021, an increase of $4.8 million, or 3.8%, from the fourth quarter of 2020. Noninterest income for the first quarter of 2021 included a notable item of a $7.6 million loan servicing rights recovery of impairment, included in mortgage banking income. Noninterest income for the fourth quarter of 2020 included a notable item of a $357 thousand loan servicing rights impairment, included in mortgage banking income. Adjusted noninterest income, a non-GAAP financial measure that excludes the identified notable items, for the first quarter of 2021 was $124.4 million, compared to $127.6 million in the fourth quarter of 2020. Noninterest income in the first quarter of 2021, compared to the fourth quarter of 2020, also included an increase of $5.7 million in net gains on sales of loans and leases, a decrease of $3.9 million in fees and service charges on deposit accounts and a decrease of $3.6 million in leasing revenue. Net gains on sales of loans and leases for the first quarter of 2021 included the sale of $17.8 million of consumer nonaccrual loans. The first quarter of 2021 also included a $1.9 million favorable interest rate swap mark-to-market adjustment resulting from changes in the interest rate environment, included in other noninterest income, compared to a favorable interest rate swap mark-to-market adjustment of $2.4 million in the fourth quarter of 2020. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables for reconciliations of our noted non-GAAP measures.

Noninterest Expense

Noninterest expense was $348.7 million for the first quarter of 2021, a decrease of $30.4 million, or 8.0%, from the fourth quarter of 2020. The first quarter of 2021 included $16.2 million of merger-related expenses and $543 thousand of historic tax credit amortization recorded in other noninterest expense. The decrease in the first quarter of 2021 primarily reflected decreases of $17.5 million in compensation and benefits expense and $15.3 million in merger-related expenses, partially offset by increases of $2.1 million in occupancy and equipment expense and $1.8 million in lease financing equipment depreciation. The decrease in compensation and benefits expense was primarily due to executive severance expense recognized in the fourth quarter of 2020 and a decrease in commissions and incentives expense, partially offset by an increase in payroll taxes due to the beginning of a new tax year.

Income Tax Expense

Income tax expense for the first quarter of 2021 was $19.5 million, an effective tax rate of 13.5%, compared to income tax expense of $25.0 million, an effective tax rate of 21.3%, for the fourth quarter of 2020. Income tax expense for the first quarter of 2021 included an additional $11.0 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 income tax rate was 21.1% for the first quarter of 2021.

Credit Quality

Provision for credit losses Provision for credit losses was $20.6 million for the first quarter of 2021, an increase of $8.7 million, from the fourth quarter of 2020. The provision for credit losses in the first quarter of 2021 primarily reflects loan and lease growth and the impact of higher net charge-offs. First quarter 2021 net charge-offs were $43.3 million, compared to $11.6 million in the fourth quarter of 2020.

Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases were 0.49% for the first quarter of 2021, compared to 0.24% for the average of the trailing four quarters. The increase in the first quarter of 2021 was primarily due to charge-offs taken on nonaccrual loans and leases within the commercial and industrial portfolio, as well as the commercial real estate portfolio primarily in the hotel sector.

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 $526.6 million, or 1.45% of total loans and leases, at March 31, 2021, compared to $549.2 million, or 1.59%, at December 31, 2020. The ACL as a percentage of total loans and leases, excluding PPP loans, a non-GAAP financial measure, was 1.53% at March 31, 2021, compared to 1.67% at December 31, 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The PPP loans are individually guaranteed by the Small Business Administration and therefore the accounting under CECL does not require reserves to be recorded on such loans. The decrease in the ACL as a percentage of total loans and leases from December 31, 2020 was primarily due to continued improvement in both current and forecasted macro-economic conditions and benefit from nonaccrual loan sale recoveries.

Nonaccrual loans and leases Nonaccrual loans and leases were $677.9 million at March 31, 2021 and represented 1.87% of total loans and leases, compared to $677.3 million, or 1.97% of total loans and leases, at December 31, 2020.

Nonaccrual loans and leases in the hotel sector were $110.6 million, an increase of $32.0 million from December 31, 2020, while nonaccrual loans in the motor coach sector were $100.2 million, a decrease of $3.9 million from December 31, 2020, and nonaccrual loans and leases in the shuttle bus sector were $37.0 million, an increase of $569 thousand from December 31, 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 continuing into 2021 where necessary, many of which have been moved to nonaccrual status.

Loan and Lease Deferrals Loans and leases on deferral status were $231.0 million at March 31, 2021, a decrease of $98.9 million, or 30.0%, from December 31, 2020. Loans and leases on deferral status included $148.8 million of balances that are included in nonaccrual balances at March 31, 2021, the majority of which have been on deferral for over 180 days.

Balance Sheet

Loans and leases



March 31, December 31, Change

(Dollars in thousands) 2021 2020 $ %

Total loans and leases $ 36,221,019 $ 34,466,408 $ 1,754,611 5.1 %

PPP loans 1,865,319 1,553,908 $ 311,411 20.0

Adjusted total loans and $ 34,355,700 $ 32,912,500 $ 1,443,200 4.4 %leases, excluding PPP^(1)

(1)Denotes a non-GAAP financial measure.

Loans and leases were $36.2 billion at March 31, 2021, an increase of $1.8 billion, or 5.1%, compared to $34.5 billion at December 31, 2020. At March 31, 2021 we had $1.9 billion of PPP loans outstanding, compared to $1.6 billion at December 31, 2020, all included in our commercial and industrial loan portfolio. Loans and leases excluding PPP loans, a non-GAAP financial measure, increased $1.4 billion, or 4.4%, from December 31, 2020, primarily due to the CEC portfolio purchase and additional increases in the commercial loan and lease portfolio and residential mortgage loans.

Investment securities The investment securities portfolio was $8.6 billion at March 31, 2021, an increase of $144.5 million, or 1.7%, compared to $8.5 billion at December 31, 2020.

Deposits Deposits were $39.8 billion at March 31, 2021, an increase of $930.5 million, or 2.4%, compared to $38.9 billion at December 31, 2020. Increases in noninterest-bearing deposits of $1.4 billion, savings account balances of $478.5 million and checking deposit account balances of $3.3 million, were partially offset by decreases in certificates of deposits of $859.2 million and money market accounts of $50.8 million as of March 31, 2021 compared to December 31, 2020. On a year-over-year basis, noninterest-bearing deposits increased $4.2 billion, or 50.5%.

Capital The common equity Tier 1 capital ratio was 11.06% at March 31, 2021, compared to 11.45% at December 31, 2020. Our capital ratios reflect our election of the five-year CECL transition for regulatory capital purposes.

TCF's board of directors declared a quarterly cash dividend of $0.35625 per depositary share payable on June 1, 2021 to shareholders of record of the depositary shares, representing a 1/1,000th interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock, at the close of business on May 14, 2021.

TCF's board of directors has not declared a regular quarterly cash dividend on TCF's common shares given the expected closing date of the merger with Huntington in the second quarter of 2021. If necessary to give effect to the intent of the Agreement and Plan of Merger to provide that TCF shareholders will receive either a common dividend from TCF or a common dividend from Huntington, but not both for the quarter, TCF's board of directors will revisit the dividend topic.

(1) Denotes a non-GAAP financial measure.

Loans and leases were $36.2 billion at March 31, 2021, an increase of $1.8 billion, or 5.1%, compared to $34.5 billion at December 31, 2020. At March 31, 2021 we had $1.9 billion of PPP loans outstanding, compared to $1.6 billion at December 31, 2020, all included in our commercial and industrial loan portfolio. Loans and leases excluding PPP loans, a non-GAAP financial measure, increased $1.4 billion, or 4.4%, from December 31, 2020, primarily due to the CEC portfolio purchase and additional increases in the commercial loan and lease portfolio and residential mortgage loans.

Investment securities The investment securities portfolio was $8.6 billion at March 31, 2021, an increase of $144.5 million, or 1.7%, compared to $8.5 billion at December 31, 2020.

Deposits Deposits were $39.8 billion at March 31, 2021, an increase of $930.5 million, or 2.4%, compared to $38.9 billion at December 31, 2020. Increases in noninterest-bearing deposits of $1.4 billion, savings account balances of $478.5 million and checking deposit account balances of $3.3 million, were partially offset by decreases in certificates of deposits of $859.2 million and money market accounts of $50.8 million as of March 31, 2021 compared to December 31, 2020. On a year-over-year basis, noninterest-bearing deposits increased $4.2 billion, or 50.5%.

Capital The common equity Tier 1 capital ratio was 11.06% at March 31, 2021, compared to 11.45% at December 31, 2020. Our capital ratios reflect our election of the five-year CECL transition for regulatory capital purposes.

TCF's board of directors declared a quarterly cash dividend of $0.35625 per depositary share payable on June 1, 2021 to shareholders of record of the depositary shares, representing a 1/1,000th interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock, at the close of business on May 14, 2021.

TCF's board of directors has not declared a regular quarterly cash dividend on TCF's common shares given the expected closing date of the merger with Huntington in the second quarter of 2021. If necessary to give effect to the intent of the Agreement and Plan of Merger to provide that TCF shareholders will receive either a common dividend from TCF or a common dividend from Huntington, but not both for the quarter, TCF's board of directors will revisit the dividend topic.

TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financialholding company with $49 billion in total assets at March 31, 2021 and a top 10deposit market share in the Midwest. TCF's primary banking subsidiary, TCFNational Bank, is a premier Midwest bank offering consumer and commercialbanking, trust and wealth management, and specialty leasing and lendingproducts and services to consumers, small businesses and commercial clients.TCF has approximately 475 banking centers primarily located in Michigan,Illinois and Minnesota with additional locations in Colorado, Ohio, SouthDakota and Wisconsin. TCF also conducts business across all 50 states andCanada through its specialty lending and leasing businesses. To learn moreabout 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 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" and Huntington's Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2020 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, including the related tax impact, 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 Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, 2020 Mar. 31, 2020thousands) 2021 2020 2020 2020 2020 $ % $ %

ASSETS:

Cash and cash equivalents:

Cash and due from $ 585,663 $ 531,918 $ 538,481 $ 535,507 $ 713,413 $ 53,745 10.1 % $ (127,750 ) (17.9 )banks %

Interest-bearingdeposits with other 463,641 728,677 1,232,773 2,545,170 565,458 (265,036 ) (36.4 ) (101,817 ) (18.0 )banks

Total cash and cash 1,049,304 1,260,595 1,771,254 3,080,677 1,278,871 (211,291 ) (16.8 ) (229,567 ) (18.0 )equivalents

Federal Home LoanBank and Federal 358,414 320,436 300,444 386,483 484,461 37,978 11.9 (126,047 ) (26.0 )Reserve Bankstocks, at cost

Investment securities:

Available-for-sale, 8,403,788 8,284,723 7,446,163 7,219,373 7,025,224 119,065 1.4 1,378,564 19.6 at fair value

Held-to-maturity, 209,778 184,359 170,309 130,101 135,619 25,419 13.8 74,159 54.7 at amortized cost

Total investment 8,613,566 8,469,082 7,616,472 7,349,474 7,160,843 144,484 1.7 1,452,723 20.3 securities

Loans and leases 107,649 222,028 460,427 532,799 287,177 (114,379 ) (51.5 ) (179,528 ) (62.5 )held-for-sale

Loans and leases 36,221,019 34,466,408 34,343,691 35,535,824 35,921,614 1,754,611 5.1 299,405 0.8

Allowance for loan (504,645 ) (525,868 ) (515,229 ) (461,114 ) (406,383 ) 21,223 4.0 (98,262 ) (24.2 )and lease losses

Loans and leases, 35,716,374 33,940,540 33,828,462 35,074,710 35,515,231 1,775,834 5.2 201,143 0.6 net

Premises and 455,032 470,131 469,699 472,240 516,454 (15,099 ) (3.2 ) (61,422 ) (11.9 )equipment, net

Goodwill 1,379,890 1,313,046 1,313,046 1,313,046 1,313,046 66,844 5.1 66,844 5.1

Other intangible 149,438 146,377 151,875 157,373 162,887 3,061 2.1 (13,449 ) (8.3 )assets, net

Loan servicing 44,151 38,303 38,253 38,816 47,283 5,848 15.3 (3,132 ) (6.6 )rights

Other assets 1,585,733 1,621,949 1,615,857 1,656,842 1,828,130 (36,216 ) (2.2 ) (242,397 ) (13.3 )

Total assets $ 49,459,551 $ 47,802,487 $ 47,565,789 $ 50,062,460 $ 48,594,383 $ 1,657,064 3.5 % $ 865,168 1.8 %

LIABILITIES AND EQUITY:

Deposits:

Noninterest-bearing $ 12,394,753 $ 11,036,086 $ 10,691,041 $ 10,480,245 $ 8,237,916 $ 1,358,667 12.3 % $ 4,156,837 50.5 %

Interest-bearing 27,392,061 27,820,233 28,481,056 28,730,627 27,561,387 (428,172 ) (1.5 ) (169,326 ) (0.6 )

Total deposits 39,786,814 38,856,319 39,172,097 39,210,872 35,799,303 930,495 2.4 3,987,511 11.1

Short-term 1,426,083 617,363 655,461 2,772,998 3,482,535 808,720 131.0 (2,056,452 ) (59.1 )borrowings

Long-term 1,518,816 1,374,732 871,845 936,908 2,600,594 144,084 10.5 (1,081,778 ) (41.6 )borrowings

Other liabilities 1,136,067 1,264,776 1,207,966 1,483,127 1,056,118 (128,709 ) (10.2 ) 79,949 7.6

Total liabilities 43,867,780 42,113,190 41,907,369 44,403,905 42,938,550 1,754,590 4.2 929,230 2.2

Equity:

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

Common stock 152,696 152,566 152,380 152,233 152,186 130 0.1 510 0.3

Additional paid-in 3,466,655 3,457,802 3,450,669 3,441,925 3,433,234 8,853 0.3 33,421 1.0 capital

Retained earnings 1,802,340 1,735,201 1,700,044 1,700,480 1,732,932 67,139 3.9 69,408 4.0

Accumulated othercomprehensive 2,654 182,673 191,771 198,408 166,170 (180,019 ) (98.5 ) (163,516 ) (98.4 )income

Other (29,813 ) (26,731 ) (27,122 ) (27,093 ) (28,140 ) (3,082 ) (11.5 ) (1,673 ) (5.9 )

Total TCF FinancialCorporation 5,563,834 5,670,813 5,637,044 5,635,255 5,625,684 (106,979 ) (1.9 ) (61,850 ) (1.1 )shareholders'equity

Non-controlling 27,937 18,484 21,376 23,300 30,149 9,453 51.1 (2,212 ) (7.3 )interest

Total equity 5,591,771 5,689,297 5,658,420 5,658,555 5,655,833 (97,526 ) (1.7 ) (64,062 ) (1.1 )

Total liabilities $ 49,459,551 $ 47,802,487 $ 47,565,789 $ 50,062,460 $ 48,594,383 $ 1,657,064 3.5 % $ 865,168 1.8 %and equity

N.M. Not Meaningful

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

Quarter Ended

Change From

(Dollars in thousands)

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31, 2020

Mar. 31, 2020

2021

2020

2020

2020

2020

$

%

$

%

Interest income:

Interest and fees on loans and leases

$

360,584

$

366,152

$

373,112

$

392,826

$

443,096

$

(5,568

)

(1.5

)%

$

(82,512

)

(18.6

)%

Interest on investment securities:

Taxable

38,716

35,389

35,648

32,505

40,920

3,327

9.4

(2,204

)

(5.4

)

Tax-exempt

3,700

3,772

3,892

4,155

4,349

(72

)

(1.9

)

(649

)

(14.9

)

Interest on loans held-for-sale

975

2,682

3,829

3,322

1,561

(1,707

)

(63.6

)

(586

)

(37.5

)

Interest on other earning assets

1,657

3,457

3,967

5,562

5,466

(1,800

)

(52.1

)

(3,809

)

(69.7

)

Total interest income

405,632

411,452

420,448

438,370

495,392

(5,820

)

(1.4

)

(89,760

)

(18.1

)

Interest expense:

Interest on deposits

13,786

20,930

31,852

46,785

67,419

(7,144

)

(34.1

)

(53,633

)

(79.6

)

Interest on borrowings

10,019

9,128

11,429

13,226

26,492

891

9.8

(16,473

)

(62.2

)

Total interest expense

23,805

30,058

43,281

60,011

93,911

(6,253

)

(20.8

)

(70,106

)

(74.7

)

Net interest income

381,827

381,394

377,167

378,359

401,481

433

0.1

(19,654

)

(4.9

)

Provision for credit losses

20,556

11,818

69,664

78,726

96,943

8,738

73.9

(76,387

)

(78.8

)

Net interest income after provision for credit losses

361,271

369,576

307,503

299,633

304,538

(8,305

)

(2.2

)

56,733

18.6

Noninterest income:

Leasing revenue

36,453

40,081

31,905

37,172

33,565

(3,628

)

(9.1

)

2,888

8.6

Fees and service charges on deposit accounts

25,895

29,782

25,470

22,832

34,597

(3,887

)

(13.1

)

(8,702

)

(25.2

)

Card and ATM revenue

24,661

22,995

23,383

20,636

21,685

1,666

7.2

2,976

13.7

Mortgage banking income(1)

20,986

11,647

19,880

16,300

5,665

9,339

80.2

15,321

N.M.

Wealth management revenue

6,944

6,838

6,506

6,206

6,151

106

1.6

793

12.9

Net gains on sales of loans and leases(2)

6,058

330

1,760

4,717

7,573

5,728

N.M.

(1,515

)

(20.0

)

Net gains on investment securities

8

6

2,324

8

-

2

33.3

8

N.M.

Other

11,055

15,557

7,582

25,183

27,727

(4,502

)

(28.9

)

(16,672

)

(60.1

)

Total noninterest income

132,060

127,236

118,810

133,054

136,963

4,824

3.8

(4,903

)

(3.6

)

Noninterest expense:

Compensation and employee benefits

173,602

191,052

168,323

171,799

171,528

(17,450

)

(9.1

)

2,074

1.2

Occupancy and equipment

52,166

50,062

48,233

54,107

57,288

2,104

4.2

(5,122

)

(8.9

)

Lease financing equipment depreciation

20,426

18,610

17,932

18,212

18,450

1,816

9.8

1,976

10.7

Net foreclosed real estate and repossessed assets

1,029

761

1,518

998

1,859

268

35.2

(830

)

(44.6

)

Merger-related expenses

16,216

31,530

54,011

81,619

36,728

(15,314

)

(48.6

)

(20,512

)

(55.8

)

Other

85,243

87,076

83,423

73,506

88,746

(1,833

)

(2.1

)

(3,503

)

(3.9

)

Total noninterest expense

348,682

379,091

373,440

400,241

374,599

(30,409

)

(8.0

)

(25,917

)

(6.9

)

Income before income tax expense (benefit)

144,649

117,721

52,873

32,446

66,902

26,928

22.9

77,747

116.2

Income tax expense (benefit)

19,540

25,031

(4,429

)

6,213

13,086

(5,491

)

(21.9

)

6,454

49.3

Income after income tax expense (benefit)

125,109

92,690

57,302

26,233

53,816

32,419

35.0

71,293

132.5

Income attributable to non-controlling interest

1,773

1,332

1,564

2,469

1,917

441

33.1

(144

)

(7.5

)

Net income attributable to TCF Financial Corporation

123,336

91,358

55,738

23,764

51,899

31,978

35.0

71,437

137.6

Preferred stock dividends

2,493

2,494

2,494

2,494

2,493

(1

)

-

-

-

Net income available to common shareholders

$

120,843

$

88,864

$

53,244

$

21,270

$

49,406

$

31,979

36.0

%

$

71,437

144.6

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)



Quarter Ended Change From

Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, 2020 Mar. 31, 2020(Dollars in thousands) 2021 2020 2020 2020 2020 $ % $ %

Interest income:

Interest and fees on $ 360,584 $ 366,152 $ 373,112 $ 392,826 $ 443,096 $ (5,568 ) (1.5 ) $ (82,512 ) (18.6 )loans and leases % %

Interest on investment securities:

Taxable 38,716 35,389 35,648 32,505 40,920 3,327 9.4 (2,204 ) (5.4 )

Tax-exempt 3,700 3,772 3,892 4,155 4,349 (72 ) (1.9 ) (649 ) (14.9 )

Interest on loans 975 2,682 3,829 3,322 1,561 (1,707 ) (63.6 ) (586 ) (37.5 )held-for-sale

Interest on other 1,657 3,457 3,967 5,562 5,466 (1,800 ) (52.1 ) (3,809 ) (69.7 )earning assets

Total interest income 405,632 411,452 420,448 438,370 495,392 (5,820 ) (1.4 ) (89,760 ) (18.1 )

Interest expense:

Interest on deposits 13,786 20,930 31,852 46,785 67,419 (7,144 ) (34.1 ) (53,633 ) (79.6 )

Interest on borrowings 10,019 9,128 11,429 13,226 26,492 891 9.8 (16,473 ) (62.2 )

Total interest expense 23,805 30,058 43,281 60,011 93,911 (6,253 ) (20.8 ) (70,106 ) (74.7 )

Net interest income 381,827 381,394 377,167 378,359 401,481 433 0.1 (19,654 ) (4.9 )

Provision for credit 20,556 11,818 69,664 78,726 96,943 8,738 73.9 (76,387 ) (78.8 )losses

Net interest incomeafter provision for 361,271 369,576 307,503 299,633 304,538 (8,305 ) (2.2 ) 56,733 18.6 credit losses

Noninterest income:

Leasing revenue 36,453 40,081 31,905 37,172 33,565 (3,628 ) (9.1 ) 2,888 8.6

Fees and servicecharges on deposit 25,895 29,782 25,470 22,832 34,597 (3,887 ) (13.1 ) (8,702 ) (25.2 )accounts

Card and ATM revenue 24,661 22,995 23,383 20,636 21,685 1,666 7.2 2,976 13.7

Mortgage banking 20,986 11,647 19,880 16,300 5,665 9,339 80.2 15,321 N.M. income^(1)

Wealth management 6,944 6,838 6,506 6,206 6,151 106 1.6 793 12.9 revenue

Net gains on sales of 6,058 330 1,760 4,717 7,573 5,728 N.M. (1,515 ) (20.0 )loans and leases^(2)

Net gains on 8 6 2,324 8 - 2 33.3 8 N.M. investment securities

Other 11,055 15,557 7,582 25,183 27,727 (4,502 ) (28.9 ) (16,672 ) (60.1 )

Total noninterest 132,060 127,236 118,810 133,054 136,963 4,824 3.8 (4,903 ) (3.6 )income

Noninterest expense:

Compensation and 173,602 191,052 168,323 171,799 171,528 (17,450 ) (9.1 ) 2,074 1.2 employee benefits

Occupancy and 52,166 50,062 48,233 54,107 57,288 2,104 4.2 (5,122 ) (8.9 )equipment

Lease financing 20,426 18,610 17,932 18,212 18,450 1,816 9.8 1,976 10.7 equipment depreciation

Net foreclosed realestate and repossessed 1,029 761 1,518 998 1,859 268 35.2 (830 ) (44.6 )assets

Merger-related 16,216 31,530 54,011 81,619 36,728 (15,314 ) (48.6 ) (20,512 ) (55.8 )expenses

Other 85,243 87,076 83,423 73,506 88,746 (1,833 ) (2.1 ) (3,503 ) (3.9 )

Total noninterest 348,682 379,091 373,440 400,241 374,599 (30,409 ) (8.0 ) (25,917 ) (6.9 )expense

Income before income 144,649 117,721 52,873 32,446 66,902 26,928 22.9 77,747 116.2 tax expense (benefit)

Income tax expense 19,540 25,031 (4,429 ) 6,213 13,086 (5,491 ) (21.9 ) 6,454 49.3 (benefit)

Income after income 125,109 92,690 57,302 26,233 53,816 32,419 35.0 71,293 132.5 tax expense (benefit)

Income attributable tonon-controlling 1,773 1,332 1,564 2,469 1,917 441 33.1 (144 ) (7.5 )interest

Net incomeattributable to TCF 123,336 91,358 55,738 23,764 51,899 31,978 35.0 71,437 137.6 Financial Corporation

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

Net income available $ 120,843 $ 88,864 $ 53,244 $ 21,270 $ 49,406 $ 31,979 36.0 % $ 71,437 144.6 %to common shareholders

(1)

Mortgage banking income includes revenues from originating, selling and servicing residential mortgage loans, changes in fair value of mortgage loans held-for-sale and the related derivative instruments, amortization and changes in impairment of mortgage loan servicing rights, and other miscellaneous loan fees.

(2)

Net gains on sales of loans and leases includes net gains on sales of loans and leases originated as held-for-investment.

Mortgage banking income includes revenues from originating, selling and servicing residential mortgage loans, changes in fair value of mortgage(1) loans held-for-sale and the related derivative instruments, amortization and changes in impairment of mortgage loan servicing rights, and other miscellaneous loan fees.

(2) Net gains on sales of loans and leases includes net gains on sales of loans and leases originated as held-for-investment.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

Quarter Ended

Mar. 31, 2021

Dec. 31, 2020

Mar. 31, 2020

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

$

354,019

$

999

1.14

%

$

301,460

$

2,855

3.77

%

$

454,675

$

3,152

2.79

%

Investment securities held-to-maturity

188,824

1,085

2.30

162,590

638

1.57

136,277

560

1.64

Investment securities available-for-sale:

Taxable

7,203,647

37,631

2.09

6,553,126

34,751

2.12

5,892,006

40,360

2.74

Tax-exempt(3)

646,001

4,684

2.90

652,743

4,774

2.93

773,468

5,503

2.85

Loans and leases held-for-sale

160,716

975

2.43

419,704

2,682

2.56

138,058

1,561

4.53

Loans and leases(3)(4)

Commercial and industrial

12,265,082

133,510

4.37

11,425,226

130,654

4.51

11,827,315

160,802

5.42

Commercial real estate

9,818,737

88,377

3.60

9,623,256

96,278

3.91

9,291,540

117,743

5.01

Lease financing

2,849,741

34,189

4.80

2,700,298

32,617

4.83

2,682,323

34,156

5.09

Residential mortgage

6,219,844

53,735

3.46

5,788,514

52,711

3.64

6,113,279

61,379

4.02

Home equity

2,988,761

37,781

5.13

3,202,321

39,722

4.93

3,514,278

51,103

5.85

Consumer installment

1,191,606

14,818

5.04

1,288,382

16,396

5.06

1,517,412

19,742

5.23

Total loans and leases(3)(4)

35,333,771

362,410

4.12

34,027,997

368,378

4.28

34,946,147

444,925

5.08

Interest-bearing deposits with banks and other

515,163

658

0.52

706,114

602

0.34

538,971

2,314

1.72

Total interest-earning assets

44,402,141

408,442

3.69

42,823,734

414,680

3.83

42,879,602

498,375

4.64

Other assets

4,348,617

4,537,786

4,105,824

Total assets

$

48,750,758

$

47,361,520

$

46,985,426

LIABILITIES AND EQUITY:

Noninterest-bearing deposits

$

11,322,059

$

10,942,071

$

7,929,933

Interest-bearing deposits:

Savings

9,697,206

883

0.04

9,395,608

1,759

0.07

8,589,815

13,669

0.64

Checking

7,259,029

1,442

0.08

7,029,938

1,763

0.10

5,990,309

5,830

0.39

Money market

5,577,424

4,704

0.34

5,478,528

5,828

0.42

4,792,248

14,855

1.25

Certificates of deposit

5,094,423

6,757

0.54

5,784,759

11,580

0.80

7,329,632

33,065

1.81

Total interest-bearing deposits

27,628,082

13,786

0.20

27,688,833

20,930

0.30

26,702,004

67,419

1.02

Total deposits

38,950,141

13,786

0.14

38,630,904

20,930

0.22

34,631,937

67,419

0.78

Borrowings:

Short-term borrowings

1,228,501

833

0.27

252,749

101

0.16

2,689,262

10,582

1.56

Long-term borrowings

1,587,028

9,186

2.32

1,253,556

9,027

2.87

2,608,204

15,910

2.42

Total borrowings

2,815,529

10,019

1.42

1,506,305

9,128

2.41

5,297,466

26,492

1.98

Total interest-bearing liabilities

30,443,611

23,805

0.32

29,195,138

30,058

0.41

31,999,470

93,911

1.18

Total deposits and borrowings

41,765,670

23,805

0.23

40,137,209

30,058

0.30

39,929,403

93,911

0.94

Accrued expenses and other liabilities

1,288,804

1,517,120

1,425,536

Total liabilities

43,054,474

41,654,329

41,354,939

Total TCF Financial Corporation shareholders' equity

5,673,654

5,687,196

5,605,159

Non-controlling interest in subsidiaries

22,630

19,995

25,328

Total equity

5,696,284

5,707,191

5,630,487

Total liabilities and equity

$

48,750,758

$

47,361,520

$

46,985,426

Net interest spread (FTE)

3.46

%

3.53

%

3.70

%

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

$

384,637

3.47

%

$

384,622

3.55

%

$

404,464

3.76

%

Reconciliation to Reported Net Interest Income

Net interest income and net interest margin (GAAP)

$

381,827

3.45

%

$

381,394

3.53

%

$

401,481

3.73

%

Adjustments for taxable equivalent

interest(1)(3)

Loans and leases

1,826

2,226

1,829

Tax-exempt investment securities

984

1,002

1,154

Total FTE adjustments

2,810

3,228

2,983

Net interest income and net interest margin (FTE)

$

384,637

3.47

%

$

384,622

3.55

%

$

404,464

3.76

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

Quarter Ended

Mar. 31, 2021 Dec. 31, 2020 Mar. 31, 2020

Average Yields Average Yields Average Yields & & &

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

ASSETS:

Federal Home Loan Bank and $ 354,019 $ 999 1.14 % $ 301,460 $ 2,855 3.77 % $ 454,675 $ 3,152 2.79 %Federal Reserve Bank stocks

Investment securities 188,824 1,085 2.30 162,590 638 1.57 136,277 560 1.64 held-to-maturity

Investment securities available-for-sale:

Taxable 7,203,647 37,631 2.09 6,553,126 34,751 2.12 5,892,006 40,360 2.74

Tax-exempt^(3) 646,001 4,684 2.90 652,743 4,774 2.93 773,468 5,503 2.85

Loans and leases held-for-sale 160,716 975 2.43 419,704 2,682 2.56 138,058 1,561 4.53

Loans and leases^(3)(4)

Commercial and industrial 12,265,082 133,510 4.37 11,425,226 130,654 4.51 11,827,315 160,802 5.42

Commercial real estate 9,818,737 88,377 3.60 9,623,256 96,278 3.91 9,291,540 117,743 5.01

Lease financing 2,849,741 34,189 4.80 2,700,298 32,617 4.83 2,682,323 34,156 5.09

Residential mortgage 6,219,844 53,735 3.46 5,788,514 52,711 3.64 6,113,279 61,379 4.02

Home equity 2,988,761 37,781 5.13 3,202,321 39,722 4.93 3,514,278 51,103 5.85

Consumer installment 1,191,606 14,818 5.04 1,288,382 16,396 5.06 1,517,412 19,742 5.23

Total loans and leases^(3)(4) 35,333,771 362,410 4.12 34,027,997 368,378 4.28 34,946,147 444,925 5.08

Interest-bearing deposits with 515,163 658 0.52 706,114 602 0.34 538,971 2,314 1.72 banks and other

Total interest-earning assets 44,402,141 408,442 3.69 42,823,734 414,680 3.83 42,879,602 498,375 4.64

Other assets 4,348,617 4,537,786 4,105,824

Total assets $ 48,750,758 $ 47,361,520 $ 46,985,426

LIABILITIES AND EQUITY:

Noninterest-bearing deposits $ 11,322,059 $ 10,942,071 $ 7,929,933

Interest-bearing deposits:

Savings 9,697,206 883 0.04 9,395,608 1,759 0.07 8,589,815 13,669 0.64

Checking 7,259,029 1,442 0.08 7,029,938 1,763 0.10 5,990,309 5,830 0.39

Money market 5,577,424 4,704 0.34 5,478,528 5,828 0.42 4,792,248 14,855 1.25

Certificates of deposit 5,094,423 6,757 0.54 5,784,759 11,580 0.80 7,329,632 33,065 1.81

Total interest-bearing deposits 27,628,082 13,786 0.20 27,688,833 20,930 0.30 26,702,004 67,419 1.02

Total deposits 38,950,141 13,786 0.14 38,630,904 20,930 0.22 34,631,937 67,419 0.78

Borrowings:

Short-term borrowings 1,228,501 833 0.27 252,749 101 0.16 2,689,262 10,582 1.56

Long-term borrowings 1,587,028 9,186 2.32 1,253,556 9,027 2.87 2,608,204 15,910 2.42

Total borrowings 2,815,529 10,019 1.42 1,506,305 9,128 2.41 5,297,466 26,492 1.98

Total interest-bearing 30,443,611 23,805 0.32 29,195,138 30,058 0.41 31,999,470 93,911 1.18 liabilities

Total deposits and borrowings 41,765,670 23,805 0.23 40,137,209 30,058 0.30 39,929,403 93,911 0.94

Accrued expenses and other 1,288,804 1,517,120 1,425,536 liabilities

Total liabilities 43,054,474 41,654,329 41,354,939

Total TCF Financial Corporation 5,673,654 5,687,196 5,605,159 shareholders' equity

Non-controlling interest in 22,630 19,995 25,328 subsidiaries

Total equity 5,696,284 5,707,191 5,630,487

Total liabilities and equity $ 48,750,758 $ 47,361,520 $ 46,985,426

Net interest spread (FTE) 3.46 % 3.53 % 3.70 %

Net interest income (FTE) and $ 384,637 3.47 % $ 384,622 3.55 % $ 404,464 3.76 %net interest margin (FTE)

Reconciliation to Reported Net Interest Income

Net interest income and net $ 381,827 3.45 % $ 381,394 3.53 % $ 401,481 3.73 %interest margin (GAAP)

Adjustments for taxableequivalent

interest^(1)(3)

Loans and leases 1,826 2,226 1,829

Tax-exempt investment 984 1,002 1,154 securities

Total FTE adjustments 2,810 3,228 2,983

Net interest income and net $ 384,637 3.47 % $ 384,622 3.55 % $ 404,464 3.76 %interest margin (FTE)

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

(2)Annualized.

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

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

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

(2) Annualized.

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

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Quarterly Average Balance Sheets (Unaudited)

Quarter Ended

Change From

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31, 2020

Mar. 31, 2020

(Dollars in thousands)

2021

2020

2020

2020

2020

$

%

$

%

ASSETS:

Federal Home Loan Bank and Federal Reserve Bank stocks

$

354,019

$

301,460

$

361,320

$

401,532

$

454,675

$

52,559

17.4

%

$

(100,656

)

(22.1

)%

Investment securities held-to-maturity

188,824

162,590

135,332

132,054

136,277

26,234

16.1

52,547

38.6

Investment securities available-for-sale:

Taxable

7,203,647

6,553,126

6,021,643

5,730,762

5,892,006

650,521

9.9

1,311,641

22.3

Tax-exempt

646,001

652,743

685,652

743,744

773,468

(6,742

)

(1.0

)

(127,467

)

(16.5

)

Loans and leases held-for-sale

160,716

419,704

490,886

356,671

138,058

(258,988

)

(61.7

)

22,658

16.4

Loans and leases(1) :

Commercial and industrial

12,265,082

11,425,226

11,740,727

12,713,714

11,827,315

839,856

7.4

437,767

3.7

Commercial real estate

9,818,737

9,623,256

9,616,301

9,658,124

9,291,540

195,481

2.0

527,197

5.7

Lease financing

2,849,741

2,700,298

2,679,142

2,712,291

2,682,323

149,443

5.5

167,418

6.2

Residential mortgage

6,219,844

5,788,514

5,987,754

6,326,227

6,113,279

431,330

7.5

106,565

1.7

Home equity

2,988,761

3,202,321

3,399,468

3,509,107

3,514,278

(213,560

)

(6.7

)

(525,517

)

(15.0

)

Consumer installment

1,191,606

1,288,382

1,386,448

1,459,446

1,517,412

(96,776

)

(7.5

)

(325,806

)

(21.5

)

Total loans and

leases(1)

35,333,771

34,027,997

34,809,840

36,378,909

34,946,147

1,305,774

3.8

387,624

1.1

Interest-bearing deposits with banks and other

515,163

706,114

2,572,254

1,587,665

538,971

(190,951

)

(27.0

)

(23,808

)

(4.4

)

Total interest-earning assets

44,402,141

42,823,734

45,076,927

45,331,337

42,879,602

1,578,407

3.7

1,522,539

3.6

Other assets

4,348,617

4,537,786

4,462,673

4,384,779

4,105,824

(189,169

)

(4.2

)

242,793

5.9

Total assets

$

48,750,758

$

47,361,520

$

49,539,600

$

49,716,116

$

46,985,426

$

1,389,238

2.9

%

$

1,765,332

3.8

%

LIABILITIES AND EQUITY:

Noninterest-bearing deposits

$

11,322,059

$

10,942,071

$

10,654,288

$

9,830,687

$

7,929,933

$

379,988

3.5

%

$

3,392,126

42.8

%

Interest-bearing deposits:

Savings

9,697,206

9,395,608

9,301,198

9,082,184

8,589,815

301,598

3.2

1,107,391

12.9

Checking

7,259,029

7,029,938

7,029,914

6,649,288

5,990,309

229,091

3.3

1,268,720

21.2

Money market

5,577,424

5,478,528

5,501,747

5,380,547

4,792,248

98,896

1.8

785,176

16.4

Certificates of deposit

5,094,423

5,784,759

6,657,697

7,491,502

7,329,632

(690,336

)

(11.9

)

(2,235,209

)

(30.5

)

Total interest-bearing deposits

27,628,082

27,688,833

28,490,556

28,603,521

26,702,004

(60,751

)

(0.2

)

926,078

3.5

Total deposits

38,950,141

38,630,904

39,144,844

38,434,208

34,631,937

319,237

0.8

4,318,204

12.5

Borrowings:

Short-term borrowings

1,228,501

252,749

2,153,030

3,016,490

2,689,262

975,752

N.M.

(1,460,761

)

(54.3

)

Long-term borrowings

1,587,028

1,253,556

910,149

1,072,394

2,608,204

333,472

26.6

(1,021,176

)

(39.2

)

Total borrowings

2,815,529

1,506,305

3,063,179

4,088,884

5,297,466

1,309,224

86.9

(2,481,937

)

(46.9

)

Total interest-bearing liabilities

30,443,611

29,195,138

31,553,735

32,692,405

31,999,470

1,248,473

4.3

(1,555,859

)

(4.9

)

Total deposits and borrowings

41,765,670

40,137,209

42,208,023

42,523,092

39,929,403

1,628,461

4.1

1,836,267

4.6

Accrued expenses and other liabilities

1,288,804

1,517,120

1,633,850

1,534,769

1,425,536

(228,316

)

(15.0

)

(136,732

)

(9.6

)

Total liabilities

43,054,474

41,654,329

43,841,873

44,057,861

41,354,939

1,400,145

3.4

1,699,535

4.1

Total TCF Financial Corporation shareholders' equity

5,673,654

5,687,196

5,675,089

5,630,133

5,605,159

(13,542

)

(0.2

)

68,495

1.2

Non-controlling interest in subsidiaries

22,630

19,995

22,638

28,122

25,328

2,635

13.2

(2,698

)

(10.7

)

Total equity

5,696,284

5,707,191

5,697,727

5,658,255

5,630,487

(10,907

)

(0.2

)

65,797

1.2

Total liabilities and equity

$

48,750,758

$

47,361,520

$

49,539,600

$

49,716,116

$

46,985,426

$

1,389,238

2.9

%

$

1,765,332

3.8

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Quarterly Average Balance Sheets (Unaudited)



Quarter Ended Change From

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

(Dollars in 2021 2020 2020 2020 2020 $ % $ %thousands)

ASSETS:

Federal Home Loan )Bank and Federal $ 354,019 $ 301,460 $ 361,320 $ 401,532 $ 454,675 $ 52,559 17.4 % $ (100,656 ) (22.1 %Reserve Bank stocks

Investmentsecurities 188,824 162,590 135,332 132,054 136,277 26,234 16.1 52,547 38.6 held-to-maturity

Investmentsecurities available-for-sale:

Taxable 7,203,647 6,553,126 6,021,643 5,730,762 5,892,006 650,521 9.9 1,311,641 22.3

Tax-exempt 646,001 652,743 685,652 743,744 773,468 (6,742 ) (1.0 ) (127,467 ) (16.5 )

Loans and leases 160,716 419,704 490,886 356,671 138,058 (258,988 ) (61.7 ) 22,658 16.4 held-for-sale

Loans and leases^ (1) :

Commercial and 12,265,082 11,425,226 11,740,727 12,713,714 11,827,315 839,856 7.4 437,767 3.7 industrial

Commercial real 9,818,737 9,623,256 9,616,301 9,658,124 9,291,540 195,481 2.0 527,197 5.7 estate

Lease financing 2,849,741 2,700,298 2,679,142 2,712,291 2,682,323 149,443 5.5 167,418 6.2

Residential 6,219,844 5,788,514 5,987,754 6,326,227 6,113,279 431,330 7.5 106,565 1.7 mortgage

Home equity 2,988,761 3,202,321 3,399,468 3,509,107 3,514,278 (213,560 ) (6.7 ) (525,517 ) (15.0 )

Consumer 1,191,606 1,288,382 1,386,448 1,459,446 1,517,412 (96,776 ) (7.5 ) (325,806 ) (21.5 )installment

Total loans and 35,333,771 34,027,997 34,809,840 36,378,909 34,946,147 1,305,774 3.8 387,624 1.1 leases^(1)

Interest-bearingdeposits with banks 515,163 706,114 2,572,254 1,587,665 538,971 (190,951 ) (27.0 ) (23,808 ) (4.4 )and other

Totalinterest-earning 44,402,141 42,823,734 45,076,927 45,331,337 42,879,602 1,578,407 3.7 1,522,539 3.6 assets

Other assets 4,348,617 4,537,786 4,462,673 4,384,779 4,105,824 (189,169 ) (4.2 ) 242,793 5.9

Total assets $ 48,750,758 $ 47,361,520 $ 49,539,600 $ 49,716,116 $ 46,985,426 $ 1,389,238 2.9 % $ 1,765,332 3.8 %

LIABILITIES AND EQUITY:

Noninterest-bearing $ 11,322,059 $ 10,942,071 $ 10,654,288 $ 9,830,687 $ 7,929,933 $ 379,988 3.5 % $ 3,392,126 42.8 %deposits

Interest-bearing deposits:

Savings 9,697,206 9,395,608 9,301,198 9,082,184 8,589,815 301,598 3.2 1,107,391 12.9

Checking 7,259,029 7,029,938 7,029,914 6,649,288 5,990,309 229,091 3.3 1,268,720 21.2

Money market 5,577,424 5,478,528 5,501,747 5,380,547 4,792,248 98,896 1.8 785,176 16.4

Certificates of 5,094,423 5,784,759 6,657,697 7,491,502 7,329,632 (690,336 ) (11.9 ) (2,235,209 ) (30.5 )deposit

Totalinterest-bearing 27,628,082 27,688,833 28,490,556 28,603,521 26,702,004 (60,751 ) (0.2 ) 926,078 3.5 deposits

Total deposits 38,950,141 38,630,904 39,144,844 38,434,208 34,631,937 319,237 0.8 4,318,204 12.5

Borrowings:

Short-term 1,228,501 252,749 2,153,030 3,016,490 2,689,262 975,752 N.M. (1,460,761 ) (54.3 )borrowings

Long-term 1,587,028 1,253,556 910,149 1,072,394 2,608,204 333,472 26.6 (1,021,176 ) (39.2 )borrowings

Total borrowings 2,815,529 1,506,305 3,063,179 4,088,884 5,297,466 1,309,224 86.9 (2,481,937 ) (46.9 )

Totalinterest-bearing 30,443,611 29,195,138 31,553,735 32,692,405 31,999,470 1,248,473 4.3 (1,555,859 ) (4.9 )liabilities

Total deposits and 41,765,670 40,137,209 42,208,023 42,523,092 39,929,403 1,628,461 4.1 1,836,267 4.6 borrowings

Accrued expensesand other 1,288,804 1,517,120 1,633,850 1,534,769 1,425,536 (228,316 ) (15.0 ) (136,732 ) (9.6 )liabilities

Total liabilities 43,054,474 41,654,329 43,841,873 44,057,861 41,354,939 1,400,145 3.4 1,699,535 4.1

Total TCF FinancialCorporation 5,673,654 5,687,196 5,675,089 5,630,133 5,605,159 (13,542 ) (0.2 ) 68,495 1.2 shareholders'equity

Non-controllinginterest in 22,630 19,995 22,638 28,122 25,328 2,635 13.2 (2,698 ) (10.7 )subsidiaries

Total equity 5,696,284 5,707,191 5,697,727 5,658,255 5,630,487 (10,907 ) (0.2 ) 65,797 1.2

Total liabilities $ 48,750,758 $ 47,361,520 $ 49,539,600 $ 49,716,116 $ 46,985,426 $ 1,389,238 2.9 % $ 1,765,332 3.8 %and equity

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

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

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

Quarter Ended

Change From

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Mar. 31,

2021

2020

2020

2020

2020

2020

2020

ASSETS:

Federal Home Loan Bank and Federal Reserve Bank stocks

1.14

%

3.77

%

3.27

%

4.38

%

2.79

%

(263)

bps

(165)

bps

Investment securities held-to-maturity

2.30

1.57

1.69

0.21

1.64

73

66

Investment securities available-for-sale:

Taxable

2.09

2.12

2.33

2.26

2.74

(3)

(65)

Tax-exempt(3)

2.90

2.93

2.90

2.81

2.85

(3)

5

Loans and leases held-for-sale

2.43

2.56

3.13

3.73

4.53

(13)

(210)

Loans and leases(3)

Commercial and industrial

4.37

4.51

4.30

4.41

5.42

(14)

(105)

Commercial real estate

3.60

3.91

3.90

3.91

5.01

(31)

(141)

Lease financing

4.80

4.83

4.88

4.99

5.09

(3)

(29)

Residential mortgage

3.46

3.64

3.86

3.93

4.02

(18)

(56)

Home equity

5.13

4.93

5.09

5.19

5.85

20

(72)

Consumer installment

5.04

5.06

5.04

4.88

5.23

(2)

(19)

Total loans and leases(3)

4.12

4.28

4.26

4.33

5.08

(16)

(96)

Interest-bearing deposits with banks and other

0.52

0.34

0.16

0.30

1.72

18

(120)

Total interest-earning assets

3.69

3.83

3.72

3.88

4.64

(14)

(95)

LIABILITIES:

Interest-bearing deposits:

Savings

0.04

0.07

0.17

0.40

0.64

(3)

(60)

Checking

0.08

0.10

0.11

0.14

0.39

(2)

(31)

Money market

0.34

0.42

0.53

0.66

1.25

(8)

(91)

Certificates of deposit

0.54

0.80

1.10

1.44

1.81

(26)

(127)

Total interest-bearing deposits

0.20

0.30

0.44

0.66

1.02

(10)

(82)

Total deposits

0.14

0.22

0.32

0.49

0.78

(8)

(64)

Borrowings:

Short-term borrowings

0.27

0.16

0.46

0.54

1.56

11

(129)

Long-term borrowings

2.32

2.87

3.91

3.40

2.42

(55)

(10)

Total borrowings

1.42

2.41

1.48

1.29

1.98

(99)

(56)

Total interest-bearing liabilities

0.32

0.41

0.55

0.74

1.18

(9)

(86)

Total deposits and borrowings

0.23

0.30

0.41

0.57

0.94

(7)

(71)

Net interest margin (GAAP)

3.45

3.53

3.31

3.33

3.73

(8)

(28)

Net interest margin (FTE)

3.47

3.55

3.34

3.35

3.76

(8)

(29)

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

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



Quarter Ended Change From

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

2021 2020 2020 2020 2020 2020 2020

ASSETS:

Federal Home LoanBank and Federal 1.14 % 3.77 % 3.27 % 4.38 % 2.79 % (263) bps (165) bpsReserve Bank stocks

Investmentsecurities 2.30 1.57 1.69 0.21 1.64 73 66 held-to-maturity

Investmentsecurities available-for-sale:

Taxable 2.09 2.12 2.33 2.26 2.74 (3) (65)

Tax-exempt^(3) 2.90 2.93 2.90 2.81 2.85 (3) 5

Loans and leases 2.43 2.56 3.13 3.73 4.53 (13) (210) held-for-sale

Loans and leases^ (3)

Commercial and 4.37 4.51 4.30 4.41 5.42 (14) (105) industrial

Commercial real 3.60 3.91 3.90 3.91 5.01 (31) (141) estate

Lease financing 4.80 4.83 4.88 4.99 5.09 (3) (29)

Residential 3.46 3.64 3.86 3.93 4.02 (18) (56) mortgage

Home equity 5.13 4.93 5.09 5.19 5.85 20 (72)

Consumer 5.04 5.06 5.04 4.88 5.23 (2) (19) installment

Total loans and 4.12 4.28 4.26 4.33 5.08 (16) (96) leases^(3)

Interest-bearingdeposits with banks 0.52 0.34 0.16 0.30 1.72 18 (120) and other



Totalinterest-earning 3.69 3.83 3.72 3.88 4.64 (14) (95) assets



LIABILITIES:

Interest-bearing deposits:



Savings 0.04 0.07 0.17 0.40 0.64 (3) (60)

Checking 0.08 0.10 0.11 0.14 0.39 (2) (31)

Money market 0.34 0.42 0.53 0.66 1.25 (8) (91)

Certificates of 0.54 0.80 1.10 1.44 1.81 (26) (127) deposit

Totalinterest-bearing 0.20 0.30 0.44 0.66 1.02 (10) (82) deposits

Total deposits 0.14 0.22 0.32 0.49 0.78 (8) (64)

Borrowings:

Short-term 0.27 0.16 0.46 0.54 1.56 11 (129) borrowings

Long-term 2.32 2.87 3.91 3.40 2.42 (55) (10) borrowings

Total borrowings 1.42 2.41 1.48 1.29 1.98 (99) (56)



Totalinterest-bearing 0.32 0.41 0.55 0.74 1.18 (9) (86) liabilities

Total deposits and 0.23 0.30 0.41 0.57 0.94 (7) (71) borrowings



Net interest margin 3.45 3.53 3.31 3.33 3.73 (8) (28) (GAAP)

Net interest margin 3.47 3.55 3.34 3.35 3.76 (8) (29) (FTE)

(1)Annualized.

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

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

(1) Annualized.

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

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Composition of Loans (Unaudited)

Quarter Ended

Change From

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31, 2020

Mar. 31, 2020

(Dollars in thousands)

2021

2020

2020

2020

2020

$

%

$

%

Commercial and industrial

$

12,856,701

$

11,422,383

$

11,557,237

$

12,200,721

$

12,326,943

$

1,434,318

12.6

%

$

529,758

4.3

%

Commercial real estate

9,881,341

9,702,587

9,627,330

9,628,344

9,486,904

178,754

1.8

394,437

4.2

Lease financing

2,956,626

2,817,231

2,724,686

2,707,402

2,708,998

139,395

4.9

247,628

9.1

Total commercial loan and lease portfolio

25,694,668

23,942,201

23,909,253

24,536,467

24,522,845

1,752,467

7.3

1,171,823

4.8

Residential mortgage

6,510,981

6,182,045

5,790,251

6,123,118

6,435,314

328,936

5.3

75,667

1.2

Home equity

2,864,142

3,108,736

3,302,983

3,445,584

3,453,502

(244,594

)

(7.9

)

(589,360

)

(17.1

)

Consumer installment

1,151,228

1,233,426

1,341,204

1,430,655

1,509,953

(82,198

)

(6.7

)

(358,725

)

(23.8

)

Total consumer loan portfolio

10,526,351

10,524,207

10,434,438

10,999,357

11,398,769

2,144

0.0

(872,418

)

(7.7

)

Total

$

36,221,019

$

34,466,408

$

34,343,691

$

35,535,824

$

35,921,614

$

1,754,611

5.1

%

$

299,405

0.8

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Composition of Loans (Unaudited)



Quarter Ended Change From

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

(Dollars in 2021 2020 2020 2020 2020 $ % $ %thousands)

Commercialand $ 12,856,701 $ 11,422,383 $ 11,557,237 $ 12,200,721 $ 12,326,943 $ 1,434,318 12.6 % $ 529,758 4.3 %industrial

Commercial 9,881,341 9,702,587 9,627,330 9,628,344 9,486,904 178,754 1.8 394,437 4.2 real estate

Lease 2,956,626 2,817,231 2,724,686 2,707,402 2,708,998 139,395 4.9 247,628 9.1 financing

Totalcommercialloan and 25,694,668 23,942,201 23,909,253 24,536,467 24,522,845 1,752,467 7.3 1,171,823 4.8 leaseportfolio

Residential 6,510,981 6,182,045 5,790,251 6,123,118 6,435,314 328,936 5.3 75,667 1.2 mortgage

Home equity 2,864,142 3,108,736 3,302,983 3,445,584 3,453,502 (244,594 ) (7.9 ) (589,360 ) (17.1 )

Consumer 1,151,228 1,233,426 1,341,204 1,430,655 1,509,953 (82,198 ) (6.7 ) (358,725 ) (23.8 )installment

Totalconsumer 10,526,351 10,524,207 10,434,438 10,999,357 11,398,769 2,144 0.0 (872,418 ) (7.7 )loanportfolio

Total $ 36,221,019 $ 34,466,408 $ 34,343,691 $ 35,535,824 $ 35,921,614 $ 1,754,611 5.1 % $ 299,405 0.8 %

Composition of Deposits (Unaudited)

Quarter Ended

Change From

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31, 2020

Mar. 31, 2020

(Dollars in thousands)

2021

2020

2020

2020

2020

$

%

$

%

Noninterest-bearing deposits

$

12,394,753

$

11,036,086

$

10,691,041

$

10,480,245

$

8,237,916

$

1,358,667

12.3

%

$

4,156,837

50.5

%

Interest-bearing deposits:

Savings

9,988,434

9,509,963

9,295,467

9,310,362

8,703,864

478,471

5.0

1,284,570

14.8

Checking

7,225,588

7,222,275

7,453,504

6,693,092

6,289,046

3,313

-

936,542

14.9

Money market

5,512,828

5,563,614

5,397,325

5,584,177

5,105,285

(50,786

)

(0.9

)

407,543

8.0

Certificates of deposit

4,665,211

5,524,381

6,334,760

7,142,996

7,463,192

(859,170

)

(15.6

)

(2,797,981

)

(37.5

)

Total interest-bearing deposits

27,392,061

27,820,233

28,481,056

28,730,627

27,561,387

(428,172

)

(1.5

)

(169,326

)

(0.6

)

Total deposits

$

39,786,814

$

38,856,319

$

39,172,097

$

39,210,872

$

35,799,303

$

930,495

2.4

%

$

3,987,511

11.1

%

Composition of Deposits (Unaudited)



Quarter Ended Change From

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

(Dollars in thousands) 2021 2020 2020 2020 2020 $ % $ %

Noninterest-bearing $ 12,394,753 $ 11,036,086 $ 10,691,041 $ 10,480,245 $ 8,237,916 $ 1,358,667 12.3 % $ 4,156,837 50.5 %deposits

Interest-bearing deposits:

Savings 9,988,434 9,509,963 9,295,467 9,310,362 8,703,864 478,471 5.0 1,284,570 14.8

Checking 7,225,588 7,222,275 7,453,504 6,693,092 6,289,046 3,313 - 936,542 14.9

Money market 5,512,828 5,563,614 5,397,325 5,584,177 5,105,285 (50,786 ) (0.9 ) 407,543 8.0

Certificates of deposit 4,665,211 5,524,381 6,334,760 7,142,996 7,463,192 (859,170 ) (15.6 ) (2,797,981 ) (37.5 )

Total interest-bearing 27,392,061 27,820,233 28,481,056 28,730,627 27,561,387 (428,172 ) (1.5 ) (169,326 ) (0.6 )deposits

Total deposits $ 39,786,814 $ 38,856,319 $ 39,172,097 $ 39,210,872 $ 35,799,303 $ 930,495 2.4 % $ 3,987,511 11.1 %

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data

Allowance for Credit Losses (Unaudited)

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

2021

2020

2020

2020

2020

(Dollars in thousands)

Balance

Reserve Rate

Balance

Reserve Rate

Balance

Reserve Rate

Balance

Reserve Rate

Balance

Reserve Rate

Allowance for loan and lease losses

Commercial and industrial

$

148,056

1.15

%

$

155,665

1.36

%

$

145,814

1.26

%

$

122,024

1.00

%

$

117,507

0.95

%

Commercial real estate

166,452

1.68

192,331

1.98

197,892

2.06

162,364

1.69

86,209

0.91

Lease financing

46,658

1.58

40,978

1.45

36,386

1.34

19,041

0.70

27,610

1.02

Residential mortgage

79,609

1.22

72,315

1.17

62,006

1.07

79,479

1.30

97,185

1.51

Home equity

48,251

1.68

45,761

1.47

49,003

1.48

56,824

1.65

57,694

1.67

Consumer installment

15,619

1.36

18,818

1.53

24,128

1.80

21,382

1.49

20,178

1.34

Total allowance for loan and lease losses

504,645

1.39

525,868

1.53

515,229

1.50

461,114

1.30

406,383

1.13

Reserve for unfunded lending commitments

21,909

23,313

34,129

42,788

22,188

Total allowance for credit losses

$

526,554

1.45

%

$

549,181

1.59

%

$

549,358

1.60

%

$

503,902

1.42

%

$

428,571

1.19

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data



Allowance for Credit Losses (Unaudited)



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

2021 2020 2020 2020 2020

(Dollars in Balance Reserve Balance Reserve Balance Reserve Balance Reserve Balance Reservethousands) Rate Rate Rate Rate Rate

Allowancefor loan and leaselosses

Commercialand $ 148,056 1.15 % $ 155,665 1.36 % $ 145,814 1.26 % $ 122,024 1.00 % $ 117,507 0.95 %industrial

Commercial 166,452 1.68 192,331 1.98 197,892 2.06 162,364 1.69 86,209 0.91 real estate

Lease 46,658 1.58 40,978 1.45 36,386 1.34 19,041 0.70 27,610 1.02 financing

Residential 79,609 1.22 72,315 1.17 62,006 1.07 79,479 1.30 97,185 1.51 mortgage

Home equity 48,251 1.68 45,761 1.47 49,003 1.48 56,824 1.65 57,694 1.67

Consumer 15,619 1.36 18,818 1.53 24,128 1.80 21,382 1.49 20,178 1.34 installment

Totalallowancefor loan 504,645 1.39 525,868 1.53 515,229 1.50 461,114 1.30 406,383 1.13 and leaselosses

Reserve forunfunded 21,909 23,313 34,129 42,788 22,188 lendingcommitments

Totalallowance $ 526,554 1.45 % $ 549,181 1.59 % $ 549,358 1.60 % $ 503,902 1.42 % $ 428,571 1.19 %for creditlosses

Changes in Allowance for Credit Losses

Quarter Ended

Change From

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Mar. 31,

(Dollars in thousands)

2021

2020

2020

2020

2020

2020

2020

Allowance for loan and lease losses

Balance, beginning of period

$

525,868

$

515,229

$

461,114

$

406,383

$

113,052

$

10,639

$

412,816

Impact of CECL adoption

-

-

-

-

205,992

-

(205,992

)

Adjusted balance, beginning of period

525,868

515,229

461,114

406,383

319,044

10,639

206,824

Charge-offs

(55,618

)

(29,593

)

(32,235

)

(9,958

)

(14,729

)

(26,025

)

(40,889

)

Recoveries

12,356

17,958

7,659

6,563

9,252

(5,602

)

3,104

Net (charge-offs) recoveries

(43,262

)

(11,635

)

(24,576

)

(3,395

)

(5,477

)

(31,627

)

(37,785

)

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

21,960

22,634

78,323

58,126

92,990

(674

)

(71,030

)

Other(2)

79

(360

)

368

-

(174

)

439

253

Balance, end of period

504,645

525,868

515,229

461,114

406,383

(21,223

)

98,262

Reserve for unfunded lending commitments

Balance, beginning of period

23,313

34,129

42,788

22,188

3,528

(10,816

)

19,785

Impact of CECL adoption

-

-

-

-

14,707

-

(14,707

)

Adjusted balance, beginning of period

23,313

34,129

42,788

22,188

18,235

(10,816

)

5,078

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

(1,404

)

(10,816

)

(8,659

)

20,600

3,953

9,412

(5,357

)

Balance, end of period

21,909

23,313

34,129

42,788

22,188

(1,404

)

(279

)

Total allowance for credit losses

$

526,554

$

549,181

$

549,358

$

503,902

$

428,571

$

(22,627

)

$

97,983

Changes in Allowance for Credit Losses



Quarter Ended Change From

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

(Dollars in 2021 2020 2020 2020 2020 2020 2020thousands)

Allowance forloan and lease losses

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

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

Adjustedbalance, 525,868 515,229 461,114 406,383 319,044 10,639 206,824 beginning ofperiod

Charge-offs (55,618 ) (29,593 ) (32,235 ) (9,958 ) (14,729 ) (26,025 ) (40,889 )

Recoveries 12,356 17,958 7,659 6,563 9,252 (5,602 ) 3,104

Net(charge-offs) (43,262 ) (11,635 ) (24,576 ) (3,395 ) (5,477 ) (31,627 ) (37,785 )recoveries

Provision forcredit lossesrelated to 21,960 22,634 78,323 58,126 92,990 (674 ) (71,030 )loans andleases^(1)

Other^(2) 79 (360 ) 368 - (174 ) 439 253

Balance, end 504,645 525,868 515,229 461,114 406,383 (21,223 ) 98,262 of period

Reserve forunfunded lendingcommitments

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

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

Adjustedbalance, 23,313 34,129 42,788 22,188 18,235 (10,816 ) 5,078 beginning ofperiod

Provision(benefit) forcredit lossesrelated to (1,404 ) (10,816 ) (8,659 ) 20,600 3,953 9,412 (5,357 )unfundedlendingcommitments^(1)

Balance, end 21,909 23,313 34,129 42,788 22,188 (1,404 ) (279 )of period

Totalallowance for $ 526,554 $ 549,181 $ 549,358 $ 503,902 $ 428,571 $ (22,627 ) $ 97,983 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.

(2)Primarily includes allowance for PCD acquisitions and 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 (benefit) for credit losses related to unfunded lending commitments are(1) included within provision for credit losses in the Consolidated Statements of Income.

Primarily includes allowance for PCD acquisitions and the transfer of the(2) 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

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

2021

2020

2020

2020

2020

(Dollars in thousands)

Balance

Rate(1)

Balance

Rate(1)

Balance

Rate(1)

Balance

Rate(1)

Balance

Rate(1)

Commercial and industrial

$

(20,476

)

0.67

%

$

(672

)

0.02

%

$

(22,201

)

0.76

%

$

9

-

%

$

(4,022

)

0.14

%

Commercial real estate

(18,389

)

0.75

(6,050

)

0.25

(144

)

0.01

(644

)

0.03

563

(0.02

)

Lease financing

(3,936

)

0.55

(1,748

)

0.26

(161

)

0.02

(1,392

)

0.21

(878

)

0.13

Residential mortgage

3,878

(0.25

)

216

(0.01

)

803

(0.05

)

(871

)

0.06

355

(0.02

)

Home equity

(2,864

)

0.38

(182

)

0.02

(237

)

0.03

(335

)

0.04

(246

)

0.03

Consumer installment

(1,475

)

0.49

(3,199

)

0.99

(2,636

)

0.76

(162

)

0.04

(1,249

)

0.33

Total net (charge-offs) recoveries

$

(43,262

)

0.49

%

$

(11,635

)

0.14

%

$

(24,576

)

0.28

%

$

(3,395

)

0.04

%

$

(5,477

)

0.06

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data (Unaudited), Continued



Net (Charge-offs) Recoveries



Quarter Ended

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

2021 2020 2020 2020 2020

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

Commercial and industrial $ (20,476 ) 0.67 % $ (672 ) 0.02 % $ (22,201 ) 0.76 % $ 9 - % $ (4,022 ) 0.14 %

Commercial real estate (18,389 ) 0.75 (6,050 ) 0.25 (144 ) 0.01 (644 ) 0.03 563 (0.02 )

Lease financing (3,936 ) 0.55 (1,748 ) 0.26 (161 ) 0.02 (1,392 ) 0.21 (878 ) 0.13

Residential mortgage 3,878 (0.25 ) 216 (0.01 ) 803 (0.05 ) (871 ) 0.06 355 (0.02 )

Home equity (2,864 ) 0.38 (182 ) 0.02 (237 ) 0.03 (335 ) 0.04 (246 ) 0.03

Consumer installment (1,475 ) 0.49 (3,199 ) 0.99 (2,636 ) 0.76 (162 ) 0.04 (1,249 ) 0.33

Total net (charge-offs) $ (43,262 ) 0.49 % $ (11,635 ) 0.14 % $ (24,576 ) 0.28 % $ (3,395 ) 0.04 % $ (5,477 ) 0.06 %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

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Mar. 31,

2021

2020

2020

2020

2020

2020

2020

Commercial and industrial

0.02

%

0.01

%

0.03

%

0.02

%

-

%

1

bps

2

bps

Commercial real estate

-

-

-

-

0.02

-

(2)

Lease financing

0.17

0.14

0.13

0.18

0.11

3

6

Residential mortgage

0.03

0.03

0.02

0.01

0.01

-

2

Home equity

-

-

-

-

0.01

-

(1)

Consumer installment

-

-

-

-

-

-

-

Total delinquencies

0.03

%

0.02

%

0.02

%

0.02

%

0.02

%

1

1

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

Change From

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

2021 2020 2020 2020 2020 2020 2020

Commercial and 0.02 % 0.01 % 0.03 % 0.02 % - % 1 bps 2 bpsindustrial

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

Lease financing 0.17 0.14 0.13 0.18 0.11 3 6

Residential 0.03 0.03 0.02 0.01 0.01 - 2 mortgage

Home equity - - - - 0.01 - (1)

Consumer - - - - - - - installment

Total 0.03 % 0.02 % 0.02 % 0.02 % 0.02 % 1 1 delinquencies

(1)Excludes nonaccrual loans and leases.

(1) Excludes nonaccrual loans and leases.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data (Unaudited), Continued

Nonperforming Assets

Change From

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Mar. 31,

(Dollars in thousands)

2021

2020

2020

2020

2020

2020

2020

Nonaccrual loans and leases:

Commercial and industrial

$

239,987

$

259,439

$

140,492

$

98,184

$

84,157

$

(19,452

)

$

155,830

Commercial real estate

188,420

154,439

70,252

57,521

47,032

33,981

141,388

Lease financing

93,958

90,822

42,023

18,756

13,170

3,136

80,788

Total commercial

522,365

504,700

252,767

174,461

144,359

17,665

378,006

Residential mortgage

76,533

97,653

65,235

67,762

61,980

(21,120

)

14,553

Home equity

72,941

69,383

52,184

47,560

43,147

3,558

29,794

Consumer installment

6,062

5,566

6,535

1,668

989

496

5,073

Total consumer

155,536

172,602

123,954

116,990

106,116

(17,066

)

49,420

Total nonaccrual loans and leases

677,901

677,302

376,721

291,451

250,475

599

427,426

Other real estate owned

32,115

33,192

35,554

42,744

38,914

(1,077

)

(6,799

)

Total nonperforming assets

$

710,016

$

710,494

$

412,275

$

334,195

$

289,389

$

(478

)

$

420,627

Nonaccrual loans and leases as a percentage of total loans and leases

1.87

%

1.97

%

1.10

%

0.82

%

0.70

%

(10

)

bps

117

bps

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

74.44

77.64

136.77

158.21

162.24

(320

)

(8,780

)

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

77.67

81.08

145.83

172.89

171.10

(341

)

(9,343

)

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

1.96

2.06

1.20

0.94

0.80

(10

)

116

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data (Unaudited), Continued



Nonperforming Assets

Change From

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

(Dollars in 2021 2020 2020 2020 2020 2020 2020thousands)

Nonaccrualloans and leases:

Commercialand $ 239,987 $ 259,439 $ 140,492 $ 98,184 $ 84,157 $ (19,452 ) $ 155,830 industrial

Commercial 188,420 154,439 70,252 57,521 47,032 33,981 141,388 real estate

Lease 93,958 90,822 42,023 18,756 13,170 3,136 80,788 financing

Total 522,365 504,700 252,767 174,461 144,359 17,665 378,006 commercial

Residential 76,533 97,653 65,235 67,762 61,980 (21,120 ) 14,553 mortgage

Home equity 72,941 69,383 52,184 47,560 43,147 3,558 29,794

Consumer 6,062 5,566 6,535 1,668 989 496 5,073 installment

Total 155,536 172,602 123,954 116,990 106,116 (17,066 ) 49,420 consumer

Totalnonaccrual 677,901 677,302 376,721 291,451 250,475 599 427,426 loans andleases

Other real 32,115 33,192 35,554 42,744 38,914 (1,077 ) (6,799 ) estate owned

Totalnonperforming $ 710,016 $ 710,494 $ 412,275 $ 334,195 $ 289,389 $ (478 ) $ 420,627 assets



Nonaccrualloans andleases as a 1.87 % 1.97 % 1.10 % 0.82 % 0.70 % (10 ) bps 117 bpspercentage oftotal loansand leases

Allowance forloan andlease lossesas a 74.44 77.64 136.77 158.21 162.24 (320 ) (8,780 ) percentage ofnonaccrualloans andleases

Allowance forcredit lossesas apercentage of 77.67 81.08 145.83 172.89 171.10 (341 ) (9,343 ) nonaccrualloans andleases

Nonperformingassets as apercentage oftotal loans 1.96 2.06 1.20 0.94 0.80 (10 ) 116 and leasesand otherreal estateowned

Consolidated Capital Information (Unaudited)

Change From

(Dollars in thousands, except per share data)

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Mar. 31,

2021

2020

2020

2020

2020

2020

2020

Book value per common share

$

35.33

$

36.06

$

35.88

$

35.91

$

35.85

(2.0

)

%

(1.5

)

%

Tangible book value per common share(1)

25.31

26.49

26.27

26.25

26.16

(4.5

)

(3.2

)

Common equity to assets

10.91

%

11.51

%

11.50

%

10.92

%

11.23

%

(60

)

bps

(32

)

bps

Tangible common equity to tangible assets(1)

8.06

8.72

8.68

8.22

8.45

(66

)

(39

)

Regulatory Capital:(2)

Common equity Tier 1 capital

$

4,101,896

$

4,103,007

$

4,053,931

$

4,028,681

$

4,026,304

0.0

%

1.9

%

Tier 1 capital

4,299,135

4,290,793

4,244,609

4,221,283

4,225,755

0.2

1.7

Total capital

4,994,676

5,026,611

4,972,715

4,907,760

4,744,899

(0.6

)

5.3

Common equity Tier 1 capital ratio

11.06

%

11.45

%

11.45

%

11.06

%

10.44

%

(39

)

bps

62

bps

Tier 1 risk-based capital ratio

11.59

11.98

11.98

11.59

10.96

(39

)

63

Total risk-based capital ratio

13.47

14.03

14.04

13.47

12.31

(56

)

116

Tier 1 leverage ratio

9.09

9.34

8.83

8.75

9.27

(25

)

(18

)

Consolidated Capital Information (Unaudited)

Change From

(Dollarsin Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Mar. 31,thousands,except persharedata) 2021 2020 2020 2020 2020 2020 2020

Book valueper common $ 35.33 $ 36.06 $ 35.88 $ 35.91 $ 35.85 (2.0 ) % (1.5 ) %share

Tangiblebook value 25.31 26.49 26.27 26.25 26.16 (4.5 ) (3.2 ) per commonshare^(1)

Commonequity to 10.91 % 11.51 % 11.50 % 10.92 % 11.23 % (60 ) bps (32 ) bpsassets

Tangiblecommonequity to 8.06 8.72 8.68 8.22 8.45 (66 ) (39 ) tangibleassets^(1)



RegulatoryCapital:^ (2)

Commonequity $ 4,101,896 $ 4,103,007 $ 4,053,931 $ 4,028,681 $ 4,026,304 0.0 % 1.9 %Tier 1capital

Tier 1 4,299,135 4,290,793 4,244,609 4,221,283 4,225,755 0.2 1.7 capital

Total 4,994,676 5,026,611 4,972,715 4,907,760 4,744,899 (0.6 ) 5.3 capital



CommonequityTier 1 11.06 % 11.45 % 11.45 % 11.06 % 10.44 % (39 ) bps 62 bpscapitalratio

Tier 1risk-based 11.59 11.98 11.98 11.59 10.96 (39 ) 63 capitalratio

Totalrisk-based 13.47 14.03 14.04 13.47 12.31 (56 ) 116 capitalratio

Tier 1leverage 9.09 9.34 8.83 8.75 9.27 (25 ) (18 ) ratio

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

(2)March 31, 2021 amounts are preliminary pending completion and filing of the Corporation's regulatory reports. Regulatory capital ratios presented reflect our election of the five-year CECL transition for regulatory capital purposes.

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

March 31, 2021 amounts are preliminary pending completion and filing of the Corporation's regulatory reports. Regulatory capital ratios presented(2) 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

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

(Dollars in thousands, except per share data)

2021

2020

2020

2020

2020

Net income available to common shareholders

(a)

$

120,843

$

88,864

$

53,244

$

21,270

$

49,406

Merger-related expenses

16,216

31,530

54,011

81,619

36,728

Notable items:

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

-

-

-

901

3,063

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

-

-

-

(14,166

)

-

Loan servicing rights (recovery) impairment(3)

(7,637

)

357

154

8,858

8,236

Total notable items

(7,637

)

357

154

(4,407

)

11,299

Total merger-related and notable items

8,579

31,887

54,165

77,212

48,027

Related income tax expense, net of benefits(4)

(1,841

)

(7,191

)

(11,207

)

(16,114

)

(10,071

)

Total adjustments, net of tax

6,738

24,696

42,958

61,098

37,956

Adjusted earnings allocated to common stock

(b)

$

127,581

$

113,560

$

96,202

$

82,368

$

87,362

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

(c)

152,540,687

152,084,428

151,821,592

151,660,139

152,114,017

Diluted earnings per common share

(a)/(c)

$

0.79

$

0.58

$

0.35

$

0.14

$

0.32

Adjusted diluted earnings per common share

(b)/(c)

0.84

0.75

0.63

0.54

0.57

Net income attributable to TCF

$

123,336

$

91,358

$

55,738

$

23,764

$

51,899

Total adjustments, net of tax

6,738

24,696

42,958

61,098

37,956

Adjusted net income attributable to TCF

$

130,074

$

116,054

$

98,696

$

84,862

$

89,855

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

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



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



Quarter Ended

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

(Dollars inthousands, except per 2021 2020 2020 2020 2020share data)

Net income availableto common (a) $ 120,843 $ 88,864 $ 53,244 $ 21,270 $ 49,406 shareholders

Merger-related 16,216 31,530 54,011 81,619 36,728 expenses

Notable items:

Sale of legacy TCFauto finance - - - 901 3,063 portfolio and relatedexpenses^(1)

Gains on sales ofbranches, write-downof company-owned - - - (14,166 ) - vacant land parcelsand branch exitcosts, net^(2)

Loan servicing rights(recovery) impairment (7,637 ) 357 154 8,858 8,236 ^(3)

Total notable items (7,637 ) 357 154 (4,407 ) 11,299

Total merger-related 8,579 31,887 54,165 77,212 48,027 and notable items

Related income taxexpense, net of (1,841 ) (7,191 ) (11,207 ) (16,114 ) (10,071 )benefits^(4)

Total adjustments, 6,738 24,696 42,958 61,098 37,956 net of tax

Adjusted earningsallocated to common (b) $ 127,581 $ 113,560 $ 96,202 $ 82,368 $ 87,362 stock



Weighted-averagecommon sharesoutstanding used in (c) 152,540,687 152,084,428 151,821,592 151,660,139 152,114,017 diluted earnings percommon sharecalculation



Diluted earnings per (a)common share / $ 0.79 $ 0.58 $ 0.35 $ 0.14 $ 0.32 (c)

Adjusted diluted (b)earnings per common / 0.84 0.75 0.63 0.54 0.57 share (c)



Net income $ 123,336 $ 91,358 $ 55,738 $ 23,764 $ 51,899 attributable to TCF

Total adjustments, 6,738 24,696 42,958 61,098 37,956 net of tax

Adjusted net income $ 130,074 $ 116,054 $ 98,696 $ 84,862 $ 89,855 attributable to TCF

(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).

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

(3)Included within mortgage banking income.

(4)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(1) 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).

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

(3) Included within mortgage banking income.

(4) 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

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

(Dollars in thousands)

2021

2020

2020

2020

2020

Adjusted net income after income tax expense (benefit):

Income after tax expense

(a)

$

125,109

$

92,690

$

57,302

$

26,233

$

53,816

Merger-related expenses

16,216

31,530

54,011

81,619

36,728

Notable items

(7,637

)

357

154

(4,407

)

11,299

Related income tax expense, net of tax benefits

(1,841

)

(7,191

)

(11,207

)

(16,114

)

(10,071

)

Adjusted net income after income tax expense (benefit) for adjusted ROAA calculation

(b)

131,847

117,386

100,260

87,331

91,772

Net income available to common shareholders

(c)

120,843

88,864

53,244

21,270

49,406

Other intangibles amortization

5,168

5,498

5,498

5,516

5,480

Related income tax expense

(1,109

)

(1,240

)

(1,137

)

(1,151

)

(1,149

)

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

(d)

124,902

93,122

57,605

25,635

53,737

Adjusted net income available to common shareholders:

Net income available to common shareholders

120,843

88,864

53,244

21,270

49,406

Notable items

(7,637

)

357

154

(4,407

)

11,299

Merger-related expenses

16,216

31,530

54,011

81,619

36,728

Related income tax expense, net of tax benefits

(1,841

)

(7,191

)

(11,207

)

(16,114

)

(10,071

)

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

(e)

127,581

113,560

96,202

82,368

87,362

Other intangibles amortization

5,168

5,498

5,498

5,516

5,480

Related income tax expense

(1,109

)

(1,240

)

(1,137

)

(1,151

)

(1,149

)

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

(f)

131,640

117,818

100,563

86,733

91,693

Average balances:

Average assets

(g)

48,750,758

47,361,520

49,539,600

49,716,116

46,985,426

Total equity

5,696,284

5,707,191

5,697,727

5,658,255

5,630,487

Non-controlling interest in subsidiaries

(22,630

)

(19,995

)

(22,638

)

(28,122

)

(25,328

)

Total TCF Financial Corporation shareholders' equity

5,673,654

5,687,196

5,675,089

5,630,133

5,605,159

Preferred stock

(169,302

)

(169,302

)

(169,302

)

(169,302

)

(169,302

)

Average total common shareholders' equity used in ROACE calculation

(h)

5,504,352

5,517,894

5,505,787

5,460,831

5,435,857

Goodwill, net

(1,363,039

)

(1,313,046

)

(1,313,046

)

(1,313,046

)

(1,301,080

)

Other intangibles, net

(146,763

)

(149,140

)

(155,142

)

(160,841

)

(166,298

)

Average tangible common shareholders' equity used in ROATCE calculation

(i)

$

3,994,550

$

4,055,708

$

4,037,599

$

3,986,944

$

3,968,479

ROAA(1)

(a)/(g)

1.03

%

0.78

%

0.46

%

0.21

%

0.46

%

Adjusted ROAA(1)

(b)/(g)

1.08

0.99

0.81

0.70

0.78

ROACE(1)

(c)/(h)

8.78

6.44

3.87

1.56

3.64

Adjusted ROACE(1)

(e)/(h)

9.27

8.23

6.99

6.03

6.43

ROATCE(1)

(d)/(i)

12.51

9.18

5.71

2.57

5.42

Adjusted ROATCE(1)

(f)/(i)

13.18

11.62

9.96

8.70

9.24

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

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

(Dollars in 2021 2020 2020 2020 2020thousands)

Adjusted net incomeafter income tax expense (benefit):

Income after tax (a) $ 125,109 $ 92,690 $ 57,302 $ 26,233 $ 53,816 expense

Merger-related 16,216 31,530 54,011 81,619 36,728 expenses

Notable items (7,637 ) 357 154 (4,407 ) 11,299

Related income taxexpense, net of tax (1,841 ) (7,191 ) (11,207 ) (16,114 ) (10,071 )benefits

Adjusted net incomeafter income taxexpense (benefit) (b) 131,847 117,386 100,260 87,331 91,772 for adjusted ROAAcalculation

Net incomeavailable to common (c) 120,843 88,864 53,244 21,270 49,406 shareholders

Other intangibles 5,168 5,498 5,498 5,516 5,480 amortization

Related income tax (1,109 ) (1,240 ) (1,137 ) (1,151 ) (1,149 )expense

Adjusted net incomeavailable to commonshareholders used (d) 124,902 93,122 57,605 25,635 53,737 in adjusted ROATCEcalculation



Adjusted net incomeavailable to common shareholders:

Net incomeavailable to common 120,843 88,864 53,244 21,270 49,406 shareholders

Notable items (7,637 ) 357 154 (4,407 ) 11,299

Merger-related 16,216 31,530 54,011 81,619 36,728 expenses

Related income taxexpense, net of tax (1,841 ) (7,191 ) (11,207 ) (16,114 ) (10,071 )benefits

Adjusted net incomeavailable to commonshareholders used (e) 127,581 113,560 96,202 82,368 87,362 in adjusted ROACEcalculation

Other intangibles 5,168 5,498 5,498 5,516 5,480 amortization

Related income tax (1,109 ) (1,240 ) (1,137 ) (1,151 ) (1,149 )expense

Adjusted net incomeavailable to commonshareholders used (f) 131,640 117,818 100,563 86,733 91,693 in adjusted ROATCEcalculation

Average balances:

Average assets (g) 48,750,758 47,361,520 49,539,600 49,716,116 46,985,426

Total equity 5,696,284 5,707,191 5,697,727 5,658,255 5,630,487

Non-controllinginterest in (22,630 ) (19,995 ) (22,638 ) (28,122 ) (25,328 )subsidiaries

Total TCF FinancialCorporation 5,673,654 5,687,196 5,675,089 5,630,133 5,605,159 shareholders'equity

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

Average totalcommonshareholders' (h) 5,504,352 5,517,894 5,505,787 5,460,831 5,435,857 equity used inROACE calculation

Goodwill, net (1,363,039 ) (1,313,046 ) (1,313,046 ) (1,313,046 ) (1,301,080 )

Other intangibles, (146,763 ) (149,140 ) (155,142 ) (160,841 ) (166,298 )net

Average tangiblecommonshareholders' (i) $ 3,994,550 $ 4,055,708 $ 4,037,599 $ 3,986,944 $ 3,968,479 equity used inROATCE calculation



(a)ROAA^(1) / 1.03 % 0.78 % 0.46 % 0.21 % 0.46 % (g)

(b)Adjusted ROAA^(1) / 1.08 0.99 0.81 0.70 0.78 (g)

(c)ROACE^(1) / 8.78 6.44 3.87 1.56 3.64 (h)

(e)Adjusted ROACE^(1) / 9.27 8.23 6.99 6.03 6.43 (h)

(d)ROATCE^(1) / 12.51 9.18 5.71 2.57 5.42 (i)

(f)Adjusted ROATCE^(1) / 13.18 11.62 9.96 8.70 9.24 (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, interest income, noninterest income and noninterest expense:

Quarter Ended

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

(Dollars in thousands)

2021

2020

2020

2020

2020

Noninterest expense

(a)

$

348,682

$

379,091

$

373,440

$

400,241

$

374,599

Merger-related expenses

(16,216

)

(31,530

)

(54,011

)

(81,619

)

(36,728

)

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

-

-

-

(551

)

-

Expenses related to the sale of Legacy TCF auto finance portfolio

-

-

-

(901

)

(3,063

)

Adjusted noninterest expense

332,466

347,561

319,429

317,170

334,808

Lease financing equipment depreciation

(20,426

)

(18,610

)

(17,932

)

(18,212

)

(18,450

)

Amortization of intangibles

(5,168

)

(5,498

)

(5,498

)

(5,516

)

(5,480

)

Historic tax credit amortization

(543

)

(3,591

)

(1,758

)

(179

)

(1,521

)

Adjusted noninterest expense, efficiency ratio

(b)

306,329

319,862

294,241

293,263

309,357

Net interest income

381,827

381,394

377,167

378,359

401,481

Noninterest income

132,060

127,236

118,810

133,054

136,963

Total revenue

(c)

513,887

508,630

495,977

511,413

538,444

Noninterest income

132,060

127,236

118,810

133,054

136,963

Gain on sales of branches

-

-

-

(14,717

)

-

Loan servicing rights (recovery) impairment

(7,637

)

357

154

8,858

8,236

Adjusted noninterest income

124,423

127,593

118,964

127,195

145,199

Net interest income

381,827

381,394

377,167

378,359

401,481

Adjustments for taxable equivalent interest (FTE)

2,810

3,228

2,844

3,032

2,983

Net interest income (FTE)

384,637

384,622

380,011

381,391

404,464

Lease financing equipment depreciation

(20,426

)

(18,610

)

(17,932

)

(18,212

)

(18,450

)

Adjusted total revenue, efficiency ratio

(d)

$

488,634

$

493,605

$

481,043

$

490,374

$

531,213

Efficiency ratio

(a)/(c)

67.85

%

74.53

%

75.29

%

78.26

%

69.57

%

Adjusted efficiency ratio

(b)/(d)

62.69

64.80

61.17

59.80

58.24

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

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



Computation of adjusted efficiency ratio, interest income, noninterest incomeand noninterest expense:



Quarter Ended

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

(Dollars in 2021 2020 2020 2020 2020thousands)

Noninterest (a) $ 348,682 $ 379,091 $ 373,440 $ 400,241 $ 374,599 expense

Merger-related (16,216 ) (31,530 ) (54,011 ) (81,619 ) (36,728 )expenses

Write-down ofcompany-ownedvacant land - - - (551 ) - parcels andbranch exitcosts

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

Adjustednoninterest 332,466 347,561 319,429 317,170 334,808 expense

Leasefinancing (20,426 ) (18,610 ) (17,932 ) (18,212 ) (18,450 )equipmentdepreciation

Amortization (5,168 ) (5,498 ) (5,498 ) (5,516 ) (5,480 )of intangibles

Historic taxcredit (543 ) (3,591 ) (1,758 ) (179 ) (1,521 )amortization

Adjustednoninterestexpense, (b) 306,329 319,862 294,241 293,263 309,357 efficiencyratio



Net interest 381,827 381,394 377,167 378,359 401,481 income

Noninterest 132,060 127,236 118,810 133,054 136,963 income

Total revenue (c) 513,887 508,630 495,977 511,413 538,444



Noninterest 132,060 127,236 118,810 133,054 136,963 income

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

Loan servicingrights (7,637 ) 357 154 8,858 8,236 (recovery)impairment

Adjustednoninterest 124,423 127,593 118,964 127,195 145,199 income

Net interest 381,827 381,394 377,167 378,359 401,481 income

Adjustmentsfor taxable 2,810 3,228 2,844 3,032 2,983 equivalentinterest (FTE)

Net interest 384,637 384,622 380,011 381,391 404,464 income (FTE)

Leasefinancing (20,426 ) (18,610 ) (17,932 ) (18,212 ) (18,450 )equipmentdepreciation

Adjusted totalrevenue, (d) $ 488,634 $ 493,605 $ 481,043 $ 490,374 $ 531,213 efficiencyratio



Efficiency (a)ratio / 67.85 % 74.53 % 75.29 % 78.26 % 69.57 % (c)

Adjusted (b)efficiency / 62.69 64.80 61.17 59.80 58.24 ratio (d)

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

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

Computation of adjusted net interest income and margin:

Quarter Ended

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

(Dollars in thousands)

2021

2020

2020

2020

2020

Net interest income

$

381,827

$

381,394

$

377,167

$

378,359

$

401,481

Adjustments for taxable equivalent interest (FTE)

2,810

3,228

2,844

3,032

2,983

Net interest income (FTE)

384,637

384,622

380,011

381,391

404,464

Purchase accounting accretion and amortization(1)

(15,043

)

(22,997

)

(17,710

)

(18,209

)

(25,258

)

Net fees recognized on PPP loans

(14,607

)

(16,071

)

(11,886

)

(7,805

)

-

Interest recognition on PPP loans(2)

(3,201

)

(3,051

)

(2,824

)

(1,759

)

-

Total PPP loans impact

(17,808

)

(19,122

)

(14,710

)

(9,564

)

-

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

$

351,786

$

342,503

$

347,591

$

353,618

$

379,206

Net interest margin (GAAP)

3.45

%

3.53

%

3.31

%

3.33

%

3.73

%

FTE impact

0.02

0.02

0.03

0.02

0.03

Net interest margin (FTE)

3.47

3.55

3.34

3.35

3.76

Purchase accounting accretion and amortization impact

(0.14

)

(0.21

)

(0.16

)

(0.16

)

(0.23

)

PPP loans impact(3)

(0.03

)

(0.04

)

0.01

0.01

-

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

3.30

%

3.30

%

3.19

%

3.20

%

3.53

%

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

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

(Dollars in 2021 2020 2020 2020 2020thousands)

Net interest $ 381,827 $ 381,394 $ 377,167 $ 378,359 $ 401,481 income

Adjustmentsfor taxableequivalent 2,810 3,228 2,844 3,032 2,983 interest(FTE)

Net interest 384,637 384,622 380,011 381,391 404,464 income (FTE)

Purchaseaccountingaccretion (15,043 ) (22,997 ) (17,710 ) (18,209 ) (25,258 )andamortization^(1)

Net feesrecognized (14,607 ) (16,071 ) (11,886 ) (7,805 ) - on PPP loans

Interestrecognition (3,201 ) (3,051 ) (2,824 ) (1,759 ) - on PPP loans^(2)

Total PPP (17,808 ) (19,122 ) (14,710 ) (9,564 ) - loans impact

Adjusted netinterestincome(FTE),excludingpurchase $ 351,786 $ 342,503 $ 347,591 $ 353,618 $ 379,206 accountingaccretionandamortizationand PPPimpact

Net interestmargin 3.45 % 3.53 % 3.31 % 3.33 % 3.73 %(GAAP)

FTE impact 0.02 0.02 0.03 0.02 0.03

Net interest 3.47 3.55 3.34 3.35 3.76 margin (FTE)

Purchaseaccountingaccretion (0.14 ) (0.21 ) (0.16 ) (0.16 ) (0.23 )andamortizationimpact

PPP loans (0.03 ) (0.04 ) 0.01 0.01 - impact^(3)

Adjusted netinterestmargin(FTE),excludingpurchase 3.30 % 3.30 % 3.19 % 3.20 % 3.53 %accountingaccretionandamortizationand PPPloans impact

(1)Includes purchase accounting accretion and amortization resulting from the TCF/Chemical merger.

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

(3)The exclusion of PPP loans additionally reduces average earning assets by $1.7 billion in the first quarter of 2021 and by $1.7 billion, $1.8 billion and $1.2 billion in the fourth, third and second quarters of 2020, respectively.

Includes purchase accounting accretion and amortization resulting from the(1) TCF/Chemical merger.

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

The exclusion of PPP loans additionally reduces average earning assets by $1.7 billion in the first quarter of 2021 and by $1.7 billion, $1.8(3) billion and $1.2 billion in the fourth, third and second quarters of 2020, respectively.

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

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

(Dollars in thousands, except per share data)

2021

2020

2020

2020

2020

Total equity

$

5,591,771

$

5,689,297

$

5,658,420

$

5,658,555

$

5,655,833

Non-controlling interest in subsidiaries

(27,937

)

(18,484

)

(21,376

)

(23,300

)

(30,149

)

Total TCF Financial Corporation shareholders' equity

5,563,834

5,670,813

5,637,044

5,635,255

5,625,684

Preferred stock

(169,302

)

(169,302

)

(169,302

)

(169,302

)

(169,302

)

Total common stockholders' equity

(a)

5,394,532

5,501,511

5,467,742

5,465,953

5,456,382

Goodwill, net

(1,379,890

)

(1,313,046

)

(1,313,046

)

(1,313,046

)

(1,313,046

)

Other intangibles, net

(149,438

)

(146,377

)

(151,875

)

(157,373

)

(162,887

)

Tangible common shareholders' equity

(b)

3,865,204

4,042,088

4,002,821

3,995,534

3,980,449

Total assets

(c)

49,459,551

47,802,487

47,565,789

50,062,460

48,594,383

Goodwill, net

(1,379,890

)

(1,313,046

)

(1,313,046

)

(1,313,046

)

(1,313,046

)

Other intangibles, net

(149,438

)

(146,377

)

(151,875

)

(157,373

)

(162,887

)

Tangible assets

(d)

$

47,930,223

$

46,343,064

$

46,100,868

$

48,592,041

$

47,118,450

Common stock shares outstanding

(e)

152,696,133

152,565,504

152,379,722

152,233,106

152,185,984

Common equity to assets

(a) / (c)

10.91

%

11.51

%

11.50

%

10.92

%

11.23

%

Tangible common equity to tangible assets

(b) / (d)

8.06

8.72

8.68

8.22

8.45

Book value per common share

(a) / (e)

$

35.33

$

36.06

$

35.88

$

35.91

$

35.85

Tangible book value per common share

(b) / (e)

25.31

26.49

26.27

26.25

26.16

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



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

(Dollars inthousands, 2021 2020 2020 2020 2020except pershare data)

Total equity $ 5,591,771 $ 5,689,297 $ 5,658,420 $ 5,658,555 $ 5,655,833

Non-controllinginterest in (27,937 ) (18,484 ) (21,376 ) (23,300 ) (30,149 )subsidiaries

Total TCFFinancialCorporation 5,563,834 5,670,813 5,637,044 5,635,255 5,625,684 shareholders'equity

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

Total commonstockholders' (a) 5,394,532 5,501,511 5,467,742 5,465,953 5,456,382 equity

Goodwill, net (1,379,890 ) (1,313,046 ) (1,313,046 ) (1,313,046 ) (1,313,046 )

Otherintangibles, (149,438 ) (146,377 ) (151,875 ) (157,373 ) (162,887 )net

Tangible commonshareholders' (b) 3,865,204 4,042,088 4,002,821 3,995,534 3,980,449 equity



Total assets (c) 49,459,551 47,802,487 47,565,789 50,062,460 48,594,383

Goodwill, net (1,379,890 ) (1,313,046 ) (1,313,046 ) (1,313,046 ) (1,313,046 )

Otherintangibles, (149,438 ) (146,377 ) (151,875 ) (157,373 ) (162,887 )net

Tangible assets (d) $ 47,930,223 $ 46,343,064 $ 46,100,868 $ 48,592,041 $ 47,118,450



Common stockshares (e) 152,696,133 152,565,504 152,379,722 152,233,106 152,185,984 outstanding



Common equity (a)to assets / 10.91 % 11.51 % 11.50 % 10.92 % 11.23 % (c)

Tangible common (b)equity to / 8.06 8.72 8.68 8.22 8.45 tangible assets (d)



Book value per (a)common share / $ 35.33 $ 36.06 $ 35.88 $ 35.91 $ 35.85 (e)

Tangible book (b)value per / 25.31 26.49 26.27 26.25 26.16 common share (e)

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

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

Computation of loans and leases and the related allowance for credit losses excluding PPP

Quarter Ended

Change From

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31, 2020

(Dollars in thousands)

2021

2020

2020

2020

2020

$

%

Commercial and industrial

$

12,856,701

$

11,422,383

$

11,557,237

$

12,200,721

$

12,326,943

$

1,434,318

12.6

%

Commercial real estate

9,881,341

9,702,587

9,627,330

9,628,344

9,486,904

178,754

1.8

Lease financing

2,956,626

2,817,231

2,724,686

2,707,402

2,708,998

139,395

4.9

Total commercial loan and lease portfolio

25,694,668

23,942,201

23,909,253

24,536,467

24,522,845

1,752,467

7.3

Residential mortgage

6,510,981

6,182,045

5,790,251

6,123,118

6,435,314

328,936

5.3

Home equity

2,864,142

3,108,736

3,302,983

3,445,584

3,453,502

(244,594

)

(7.9

)

Consumer installment

1,151,228

1,233,426

1,341,204

1,430,655

1,509,953

(82,198

)

(6.7

)

Total consumer loan portfolio

10,526,351

10,524,207

10,434,438

10,999,357

11,398,769

2,144

0.0

Total loans and leases

36,221,019

34,466,408

34,343,691

35,535,824

35,921,614

1,754,611

5.1

PPP (Commercial and industrial)

1,865,319

1,553,908

1,836,850

1,819,469

-

311,411

20.0

Loans and leases excluding PPP loans

Commercial and industrial

10,991,382

9,868,475

9,720,387

10,381,252

12,326,943

1,122,907

11.4

Commercial real estate

9,881,341

9,702,587

9,627,330

9,628,344

9,486,904

178,754

1.8

Lease financing

2,956,626

2,817,231

2,724,686

2,707,402

2,708,998

139,395

4.9

Total commercial loan and lease portfolio

23,829,349

22,388,293

22,072,403

22,716,998

24,522,845

1,441,056

6.4

Residential mortgage

6,510,981

6,182,045

5,790,251

6,123,118

6,435,314

328,936

5.3

Home equity

2,864,142

3,108,736

3,302,983

3,445,584

3,453,502

(244,594

)

(7.9

)

Consumer installment

1,151,228

1,233,426

1,341,204

1,430,655

1,509,953

(82,198

)

(6.7

)

Total consumer loan portfolio

10,526,351

10,524,207

10,434,438

10,999,357

11,398,769

2,144

0.0

Total loans and leases, excluding PPP loans

$

34,355,700

$

32,912,500

$

32,506,841

$

33,716,355

$

35,921,614

$

1,443,200

4.4

Allowance for credit losses

$

526,554

$

549,181

$

549,358

$

503,902

$

428,571

$

(22,627

)

(4.1

)%

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

1.45

%

1.59

%

1.60

%

1.42

%

1.19

%

(14

)

bps

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

1.53

1.67

1.69

1.49

1.19

(14

)

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Source: TCF Financial Corporation

View source version on businesswire.com: https://www.businesswire.com/news/home/20210422005652/en/

CONTACT: Randi Berris (248) 608-5239 news@tcfbank.com (Media)

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