TCF Financial : Reports Fourth Quarter 2020 Results

January 22, 2021 at 09:01 am

TCF Financial Corporation (NASDAQ: TCF):

Fourth Quarter 2020 Highlights

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

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

Pre-tax merger-related expenses of $31.5 million, $24.4 million net of tax, or $0.17 per diluted common share for the fourth quarter of 2020, compared to pre-tax merger-related expenses of $54.0 million, $42.8 million net of tax, or $0.28 per diluted common share for the third quarter of 2020
Pre-tax expenses of $357 thousand, $276 thousand net of tax, related to notable items for the fourth quarter of 2020, compared to pre-tax expenses of $154 thousand, $122 thousand net of tax, related to notable items for the third quarter of 2020, see summary of notable items adjustments below

(1)

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

Summary of Financial Results
	At or For the Quarter Ended															Change From
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,		Dec. 31,
(Dollars in thousands, except per share data)	2020			2020			2020			2020			2019			2020		2019
Financial Results
Net income attributable to TCF	$	91,358		$	55,738		$	23,764		$	51,899		$	112,399		63.9	%	(18.7)	%
Net interest income	381,394			377,167			378,359			401,481			408,753			1.1		(6.7)
Basic earnings per common share	$	0.58		$	0.35		$	0.14		$	0.33		$	0.72		65.7		(19.4)
Diluted earnings per common share	0.58			0.35			0.14			0.32			0.72			65.7		(19.4)
Return on average assets ("ROAA")⁽¹⁾	0.78		%	0.46		%	0.21		%	0.46		%	0.99		%	32	bps	(21)	bps
ROACE⁽¹⁾	6.44			3.87			1.56			3.64			8.00			257		(156)
ROATCE (non-GAAP)⁽¹⁾⁽²⁾	9.18			5.71			2.57			5.42			11.35			347		(217)
Net interest margin	3.53			3.31			3.33			3.73			3.86			22		(33)
Net interest margin (FTE)⁽¹⁾⁽²⁾	3.55			3.34			3.35			3.76			3.89			21		(34)
Net charge-offs as a percentage of average loans and leases⁽¹⁾	0.14			0.28			0.04			0.06			0.07			(14)		7
Nonperforming assets as a percentage of total loans and leases and other real estate owned⁽³⁾	2.06			1.20			0.94			0.80			0.59			86		147
Efficiency ratio	74.53			75.29			78.26			69.57			73.49			(76)		104
Adjusted Financial Results (non-GAAP)
Adjusted net income attributable to TCF⁽¹⁾⁽²⁾	$116,054			$98,696			$84,862			$89,855			$161,581			17.6	%	(28.2)	%
Adjusted diluted earnings per common share⁽²⁾	$	0.75		$	0.63		$	0.54		$	0.57		$	1.04		19.0		(27.9)
Adjusted ROAA⁽¹⁾⁽²⁾	0.99		%	0.81		%	0.70		%	0.78		%	1.42		%	18	bps	(43)	bps
Adjusted ROACE⁽¹⁾⁽²⁾	8.23			6.99			6.03			6.43			11.57			124		(334)
Adjusted ROATCE⁽¹⁾⁽²⁾	11.62			9.96			8.70			9.24			16.25			166		(463)
Adjusted efficiency ratio⁽²⁾	64.80			61.17			59.80			58.24			58.51			363		629

(1)		Annualized.
(2)		Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.
(3)		Prior to the adoption of CECL as of January 1, 2020, purchased credit impaired loans were not classified as nonaccrual loans because they were recorded at their net realizable value based on the principal and interest expected to be collected on the loans. At January 1, 2020, $73.4 million of previous purchased credit impaired loans were reclassified to nonaccrual loans as a result of the adoption of CECL.

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

	For the Quarter Ended December 31, 2020						For the Quarter Ended September 30, 2020
(Dollars in thousands, except per share data)	Pre-tax income (loss)		After-tax benefit (loss)⁽¹⁾		Per Share		Pre-tax income (loss)		After-tax benefit (loss)⁽¹⁾		Per Share
Merger-related expenses	$	(31,530)	$	(24,420)	$	(0.17)	$	(54,011)	(42,836)		$	(0.28)
Notable items:
Loan servicing rights impairment⁽²⁾	(357)		(276)		—		(154)		(122)		—
Total notable items	(357)		(276)		—		(154)		(122)		—
Total merger-related and notable items	$	(31,887)	$	(24,696)	$	(0.17)	$	(54,165)	$	(42,958)	$	(0.28)

(1)		Net of tax benefit at our normal tax rate and other tax benefits.
(2)		Included within other noninterest income.

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

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

Net Interest Income and Net Interest Margin

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

Net interest margin was 3.53% for the fourth quarter of 2020, compared to 3.31% in the third quarter of 2020, while net interest margin on a fully tax-equivalent basis (FTE), a non-GAAP financial measure, was 3.55%, up 21 basis points from the third quarter of 2020. The increase in net interest margin from the third quarter of 2020 was primarily driven by lower cash balances, lower cost of funds and overall higher yields on loans benefited by PPP forgiveness and higher accretion, partially offset by new loan and lease originations at lower yields than loan and lease runoff. Deposit costs continued to reprice lower as they declined from 0.32% in the third quarter of 2020 to 0.22% in the fourth quarter of 2020. Adjusted net interest margin FTE, excluding a 21 basis point impact related to purchase accounting accretion and amortization and a four basis point impact related to PPP loans, a non-GAAP financial measure, was 3.30% for the fourth quarter of 2020, up 11 basis point from the third quarter of 2020. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables for reconciliations of our noted non-GAAP measures.

Noninterest Income

Noninterest income was $127.2 million for the fourth quarter of 2020, an increase of $8.4 million, or 7.1%, from the third quarter of 2020. Noninterest income for the fourth quarter of 2020 included a notable item of a $357 thousand loan servicing rights impairment, included in other noninterest income. Noninterest income for the third quarter of 2020 included a notable item of an $154 thousand loan servicing rights impairment, included in other noninterest income. Adjusted noninterest income, a non-GAAP financial measure, for the fourth quarter of 2020 was $127.6 million, compared to $119.0 million in the third quarter of 2020. The fourth quarter of 2020 noninterest income, compared to the third quarter of 2020, also included increases of $8.2 million in leasing revenue due to an increase in sales-type lease revenue through our equipment financing activity and $4.3 million in fees and service charges on deposit accounts, partially offset by decreases of $9.8 million in net gains on sales of loans and leases and $2.3 million in net gains on investment securities. The decrease in net gains on sales of loans and leases was primarily due to lower volume and gain on sale rate. The fourth quarter of 2020 also included a $2.4 million favorable interest rate swap mark-to-market adjustment resulting from changes in the interest rate environment, included in other noninterest income, compared to an unfavorable interest rate swap mark-to-market adjustment of $2.6 million in the third quarter of 2020.

Noninterest Expense

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

Income Tax Expense

Income tax expense for the fourth quarter of 2020 was $25.0 million, an effective tax rate of 21.3%, compared to income tax benefit of $4.4 million for the third quarter of 2020. Income tax expense for the third quarter included a $16.0 million benefit attributable to tax net operating loss carryback benefits associated with the CARES Act. Excluding the benefit provided by the CARES Act, our effective tax rate was 21.9% for the third quarter of 2020.

Credit Quality

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

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

Allowance for Credit Losses The ACL includes both the allowance for loan and lease losses, which is presented separately on the Consolidated Statements of Financial Condition, and the reserve for unfunded lending commitments, which is included in other liabilities on the Consolidated Statements of Financial Condition. The ACL was $549.2 million, or 1.59% of total loans and leases, at December 31, 2020, compared to $549.4 million, or 1.60%, at September 30, 2020. The ACL as a percentage of total loans and leases, excluding PPP loans, a non-GAAP financial measure, was relatively stable at 1.67% at December 31, 2020, compared to 1.69% at September 30, 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The PPP loans are individually guaranteed by the Small Business Administration and therefore the accounting under CECL does not require reserves to be recorded on such loans.

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

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

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

Balance Sheet
*Loans and leases*
	Dec. 31,		Sep. 30,		Change
(Dollars in thousands)	2020		2020		$			%
Total loans and leases	$	34,466,408	$	34,343,691	$	122,717		0.4	%
PPP loans	1,553,908		1,836,850		$	(282,942	)	(15.4	)
Adjusted total loans and leases, excluding PPP⁽¹⁾	$	32,912,500	$	32,506,841	$	405,659		1.2	%

(1)

Denotes a non-GAAP financial measure.

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

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

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

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

TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $48 billion in total assets at December 31, 2020 and a top 10 deposit market share in the Midwest. TCF’s primary banking subsidiary, TCF National Bank, is a premier Midwest bank offering consumer and commercial banking, trust and wealth management, and specialty leasing and lending products and services to consumers, small businesses and commercial clients. TCF has approximately 475 banking centers primarily located in Michigan, Illinois and Minnesota with additional locations in Colorado, Ohio, South Dakota and Wisconsin. TCF also conducts business across all 50 states and Canada through its specialty lending and leasing businesses. To learn more about TCF, visit ir.tcfbank.com.

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

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

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

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

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

Use of Non-GAAP Financial Measures

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

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition (Unaudited)
																Change From
(Dollars in thousands)	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30, 2020					Dec. 31, 2019
(Dollars in thousands)	2020			2020			2020			2020			2019			$			%		$				%
ASSETS:
Cash and cash equivalents:
Cash and due from banks	$	531,918		$	538,481		$	535,507		$	713,413		$	491,787		$	(6,563	)	(1.2	)%	$	40,131			8.2	%
Interest-bearing deposits with other banks	728,677			1,232,773			2,545,170			565,458			736,584			(504,096		)	(40.9	)	(7,907		)		(1.1	)
Total cash and cash equivalents	1,260,595			1,771,254			3,080,677			1,278,871			1,228,371			(510,659		)	(28.8	)	32,224				2.6
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost	320,436			300,444			386,483			484,461			442,440			19,992			6.7		(122,004		)		(27.6	)
Investment securities:
Available-for-sale, at fair value	8,284,723			7,446,163			7,219,373			7,025,224			6,720,001			838,560			11.3		1,564,722				23.3
Held-to-maturity, at amortized cost	184,359			170,309			130,101			135,619			139,445			14,050			8.2		44,914				32.2
Total investment securities	8,469,082			7,616,472			7,349,474			7,160,843			6,859,446			852,610			11.2		1,609,636				23.5
Loans and leases held-for-sale	222,028			460,427			532,799			287,177			199,786			(238,399		)	(51.8	)	22,242				11.1
Loans and leases	34,466,408			34,343,691			35,535,824			35,921,614			34,497,464			122,717			0.4		(31,056		)		(0.1	)
Allowance for loan and lease losses	(525,868		)	(515,229		)	(461,114		)	(406,383		)	(113,052		)	(10,639		)	(2.1	)	(412,816		)		N.M.
Loans and leases, net	33,940,540			33,828,462			35,074,710			35,515,231			34,384,412			112,078			0.3		(443,872		)		(1.3	)
Premises and equipment, net	470,131			469,699			472,240			516,454			533,138			432			0.1		(63,007		)		(11.8	)
Goodwill	1,313,046			1,313,046			1,313,046			1,313,046			1,299,878			0			0.0		13,168				1.0
Other intangible assets, net	146,377			151,875			157,373			162,887			168,368			(5,498		)	(3.6	)	(21,991		)		(13.1	)
Loan servicing rights	38,303			38,253			38,816			47,283			56,313			50			0.1		(18,010		)		(32.0	)
Other assets	1,621,949			1,615,857			1,656,842			1,828,130			1,479,401			6,092			0.4		142,548				9.6
Total assets	$	47,802,487		$	47,565,789		$	50,062,460		$	48,594,383		$	46,651,553		$	236,698		0.5	%	$	1,150,934			2.5	%
LIABILITIES AND EQUITY:
Deposits:
Noninterest-bearing	$	11,036,086		$	10,691,041		$	10,480,245		$	8,237,916		$	7,970,590		$	345,045		3.2	%	$	3,065,496			38.5	%
Interest-bearing	27,820,233			28,481,056			28,730,627			27,561,387			26,497,873			(660,823		)	(2.3	)	1,322,360				5.0
Total deposits	38,856,319			39,172,097			39,210,872			35,799,303			34,468,463			(315,778		)	(0.8	)	4,387,856				12.7
Short-term borrowings	617,363			655,461			2,772,998			3,482,535			2,669,145			(38,098		)	(5.8	)	(2,051,782		)		(76.9	)
Long-term borrowings	1,374,732			871,845			936,908			2,600,594			2,354,448			502,887			57.7		(979,716			)	(41.6	)
Other liabilities	1,264,776			1,207,966			1,483,127			1,056,118			1,432,256			56,810			4.7		(167,480		)		(11.7	)
Total liabilities	42,113,190			41,907,369			44,403,905			42,938,550			40,924,312			205,821			0.5		1,188,878				2.9
Equity:
Preferred stock	169,302			169,302			169,302			169,302			169,302			—			—		—				—
Common stock	152,566			152,380			152,233			152,186			152,966			186			0.1		(400		)		(0.3	)
Additional paid-in capital	3,457,802			3,450,669			3,441,925			3,433,234			3,462,080			7,133			0.2		(4,278		)		(0.1	)
Retained earnings	1,735,201			1,700,044			1,700,480			1,732,932			1,896,427			35,157			2.1		(161,226		)		(8.5	)
Accumulated other comprehensive income	182,673			191,771			198,408			166,170			54,277			(9,098		)	(4.7	)	128,396				N.M.
Other	(26,731		)	(27,122		)	(27,093		)	(28,140		)	(28,037		)	391			1.4		1,306				4.7
Total TCF Financial Corporation shareholders' equity	5,670,813			5,637,044			5,635,255			5,625,684			5,707,015			33,769			0.6		(36,202		)		(0.6	)
Non-controlling interest	18,484			21,376			23,300			30,149			20,226			(2,892		)	(13.5	)	(1,742		)		(8.6	)
Total equity	5,689,297			5,658,420			5,658,555			5,655,833			5,727,241			30,877			0.5		(37,944		)		(0.7	)
Total liabilities and equity	$	47,802,487		$	47,565,789		$	50,062,460		$	48,594,383		$	46,651,553		$	236,698		0.5	%	$	1,150,934			2.5	%
N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)

	Quarter Ended											Change From
(Dollars in thousands)	Dec. 31,		Sep. 30,			Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30, 2020					Dec. 31, 2019
(Dollars in thousands)	2020		2020			2020		2020		2019		$			%		$			%
Interest income:
Interest and fees on loans and leases	$	366,152	$	373,112		$	392,826	$	443,096	$	446,738	$	(6,960	)	(1.9	)%	$	(80,586	)	(18.0	)%
Interest on investment securities:
Taxable	35,389		35,648			32,505		40,920		36,282		(259		)	(0.7	)	(893		)	(2.5	)
Tax-exempt	3,772		3,892			4,155		4,349		4,374		(120		)	(3.1	)	(602		)	(13.8	)
Interest on loans held-for-sale	2,682		3,829			3,322		1,561		15,767		(1,147		)	(30.0	)	(13,085		)	(83.0	)
Interest on other earning assets	3,457		3,967			5,562		5,466		6,617		(510		)	(12.9	)	(3,160		)	(47.8	)
Total interest income	411,452		420,448			438,370		495,392		509,778		(8,996		)	(2.1	)	(98,326		)	(19.3	)
Interest expense:
Interest on deposits	20,930		31,852			46,785		67,419		77,003		(10,922		)	(34.3	)	(56,073		)	(72.8	)
Interest on borrowings	9,128		11,429			13,226		26,492		24,022		(2,301		)	(20.1	)	(14,894		)	(62.0	)
Total interest expense	30,058		43,281			60,011		93,911		101,025		(13,223		)	(30.6	)	(70,967		)	(70.2	)
Net interest income	381,394		377,167			378,359		401,481		408,753		4,227			1.1		(27,359		)	(6.7	)
Provision for credit losses	11,818		69,664			78,726		96,943		14,403		(57,846		)	(83.0	)	(2,585		)	(17.9	)
Net interest income after provision for credit losses	369,576		307,503			299,633		304,538		394,350		62,073			20.2		(24,774		)	(6.3	)
Noninterest income:
Leasing revenue	40,081		31,905			37,172		33,565		46,686		8,176			25.6		(6,605		)	(14.1	)
Fees and service charges on deposit accounts	29,782		25,470			22,832		34,597		39,356		4,312			16.9		(9,574		)	(24.3	)
Card and ATM revenue	22,995		23,383			20,636		21,685		24,751		(388		)	(1.7	)	(1,756		)	(7.1	)
Net gains on sales of loans and leases	13,662		23,490			29,034		20,590		12,934		(9,828		)	(41.8	)	728			5.6
Wealth management revenue	6,838		6,506			6,206		6,151		6,172		332			5.1		666			10.8
Servicing fee revenue	449		321			3,041		6,792		6,022		128			39.9		(5,573		)	(92.5	)
Net gains on investment securities	6		2,324			8		0		8		(2,318		)	(99.7	)	(2		)	(25.0	)
Other	13,423		5,411			14,125		13,583		22,123		8,012			148.1		(8,700		)	(39.3	)
Total noninterest income	127,236		118,810			133,054		136,963		158,052		8,426			7.1		(30,816		)	(19.5	)
Noninterest expense:
Compensation and employee benefits	191,052		168,323			171,799		171,528		180,969		22,729			13.5		10,083			5.6
Occupancy and equipment	50,062		48,233			54,107		57,288		56,771		1,829			3.8		(6,709		)	(11.8	)
Lease financing equipment depreciation	18,610		17,932			18,212		18,450		18,629		678			3.8		(19		)	(0.1	)
Net foreclosed real estate and repossessed assets	761		1,518			998		1,859		4,242		(757		)	(49.9	)	(3,481		)	(82.1	)
Merger-related expenses	31,530		54,011			81,619		36,728		47,025		(22,481		)	(41.6	)	(15,495		)	(33.0	)
Other	87,076		83,423			73,506		88,746		108,935		3,653			4.4		(21,859		)	(20.1	)
Total noninterest expense	379,091		373,440			400,241		374,599		416,571		5,651			1.5		(37,480		)	(9.0	)
Income before income tax expense (benefit)	117,721		52,873			32,446		66,902		135,831		64,848			122.6		(18,110		)	(13.3	)
Income tax expense (benefit)	25,031		(4,429		)	6,213		13,086		21,375		29,460			N.M.		3,656			17.1
Income after income tax expense (benefit)	92,690		57,302			26,233		53,816		114,456		35,388			61.8		(21,766		)	(19.0	)
Income attributable to non-controlling interest	1,332		1,564			2,469		1,917		2,057		(232		)	(14.8	)	(725		)	(35.2	)
Net income attributable to TCF Financial Corporation	91,358		55,738			23,764		51,899		112,399		35,620			63.9		(21,041		)	(18.7	)
Preferred stock dividends	2,494		2,494			2,494		2,493		2,494		—			—		—			—
Net income available to common shareholders	$	88,864	$	53,244		$	21,270	$	49,406	$	109,905	$	35,620		66.9	%	$	(21,041	)	(19.1	)%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)

	Year Ended December 31,				Change
(Dollars in thousands, except per share data)	2020		2019		$			%
Interest income:
Interest and fees on loans and leases	$	1,575,186	$	1,430,628	$	144,558		10.1	%
Interest on investment securities:
Taxable	144,462		106,027		38,435			36.3
Tax-exempt	16,168		11,651		4,517			38.8
Interest on loans held-for-sale	11,394		18,599		(7,205		)	(38.7	)
Interest on other earning assets	18,452		20,356		(1,904		)	(9.4	)
Total interest income	1,765,662		1,587,261		178,401			11.2
Interest expense:
Interest on deposits	166,986		226,157		(59,171		)	(26.2	)
Interest on borrowings	60,275		72,072		(11,797		)	(16.4	)
Total interest expense	227,261		298,229		(70,968		)	(23.8	)
Net interest income	1,538,401		1,289,032		249,369			19.3
Provision for credit losses	257,151		65,282		191,869			N.M.
Net interest income after provision for credit losses	1,281,250		1,223,750		57,500			4.7
Noninterest income:
Leasing revenue	142,723		163,718		(20,995		)	(12.8	)
Fees and service charges on deposit accounts	112,681		127,860		(15,179		)	(11.9	)
Card and ATM revenue	88,699		87,221		1,478			1.7
Net gains on sales of loans and leases	86,776		26,308		60,468			N.M.
Wealth management revenue	25,701		10,413		15,288			146.8
Servicing fee revenue	10,603		20,776		(10,173		)	(49.0	)
Net gains on investment securities	2,338		7,425		(5,087		)	(68.5	)
Other	46,542		21,811		24,731			113.4
Total noninterest income	516,063		465,532		50,531			10.9
Noninterest expense:
Compensation and employee benefits	702,702		576,922		125,780			21.8
Occupancy and equipment	209,690		189,560		20,130			10.6
Lease financing equipment depreciation	73,204		76,426		(3,222		)	(4.2	)
Net foreclosed real estate and repossessed assets	5,136		13,523		(8,387		)	(62.0	)
Merger-related expenses	203,888		171,968		31,920			18.6
Other	332,751		303,716		29,035			9.6
Total noninterest expense	1,527,371		1,332,115		195,256			14.7
Income before income tax expense	269,942		357,167		(87,225		)	(24.4	)
Income tax expense	39,901		50,241		(10,340		)	(20.6	)
Income after income tax expense	230,041		306,926		(76,885		)	(25.1	)
Income attributable to non-controlling interest	7,282		11,458		(4,176		)	(36.4	)
Net income attributable to TCF Financial Corporation	222,759		295,468		(72,709		)	(24.6	)
Preferred stock dividends	9,975		9,975		—			—
Net income available to common shareholders	$	212,784	$	285,493	$	(72,709	)	(25.5	)%
N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields and Rates (Unaudited)
	Quarter Ended
	Dec. 31, 2020						Sep. 30, 2020						Dec. 31, 2019
	Average				Yields &		Average				Yields &		Average				Yields &
(Dollars in thousands)	Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾		Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾		Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾
ASSETS:
Federal Home Loan Bank and Federal Reserve Bank stocks	$	301,460	$	2,855	3.77	%	$	361,320	$	2,973	3.27	%	$	388,640	$	3,170	3.24	%
Investment securities held-to-maturity	162,590			638	1.57		135,332			573	1.69		140,434			889	2.53
Investment securities available-for-sale:
Taxable	6,553,126			34,751	2.12		6,021,643			35,075	2.33		4,960,520			35,393	2.85
Tax-exempt⁽³⁾	652,743			4,774	2.93		685,652			4,972	2.90		778,994			5,536	2.84
Loans and leases held-for-sale	419,704			2,682	2.56		490,886			3,829	3.13		1,121,326			15,767	5.58
Loans and leases⁽³⁾⁽⁴⁾
Commercial and industrial	11,425,226			130,654	4.51		11,740,727			127,751	4.30		10,955,937			156,246	5.63
Commercial real estate	9,623,256			96,278	3.91		9,616,301			95,779	3.90		9,057,834			124,431	5.38
Lease financing	2,700,298			32,617	4.83		2,679,142			32,696	4.88		2,616,360			33,431	5.11
Residential mortgage	5,788,514			52,711	3.64		5,987,754			57,610	3.86		6,023,647			61,072	4.05
Home equity	3,202,321			39,722	4.93		3,399,468			43,489	5.09		3,604,153			53,910	5.93
Consumer installment	1,288,382			16,396	5.06		1,386,448			17,551	5.04		1,546,952			19,382	4.97
Total loans and leases⁽³⁾⁽⁴⁾	34,027,997			368,378	4.28		34,809,840			374,876	4.26		33,804,883			448,472	5.24
Interest-bearing deposits with banks and other	706,114			602	0.34		2,572,254			994	0.16		656,555			3,448	2.07
Total interest-earning assets	42,823,734			414,680	3.83		45,076,927			423,292	3.72		41,851,352			512,675	4.85
Other assets	4,537,786						4,462,673						4,268,162
Total assets	$	47,361,520					$	49,539,600					$	46,119,514
LIABILITIES AND EQUITY:
Noninterest-bearing deposits	$	10,942,071					$	10,654,288					$	7,968,769
Interest-bearing deposits:
Savings	9,395,608		1,759		0.07		9,301,198		4,050		0.17		8,404,460		14,993		0.71
Certificates of deposit	5,784,759		11,580		0.80		6,657,697		18,446		1.10		7,825,573		38,859		1.97
Checking	7,029,938		1,763		0.10		7,029,914		2,025		0.11		5,891,566		7,614		0.51
Money market	5,478,528		5,828		0.42		5,501,747		7,331		0.53		4,463,476		15,537		1.38
Total interest-bearing deposits	27,688,833		20,930		0.30		28,490,556		31,852		0.44		26,585,075		77,003		1.15
Total deposits	38,630,904		20,930		0.22		39,144,844		31,852		0.32		34,553,844		77,003		0.88
Borrowings:
Short-term borrowings	252,749		101		0.16		2,153,030		2,511		0.46		2,585,682		11,403		1.73
Long-term borrowings	1,253,556		9,027		2.87		910,149		8,918		3.91		1,739,852		12,620		2.87
Total borrowings	1,506,305		9,128		2.41		3,063,179		11,429		1.48		4,325,534		24,023		2.19
Total interest-bearing liabilities	29,195,138		30,058		0.41		31,553,735		43,281		0.55		30,910,609		101,026		1.29
Total deposits and borrowings	40,137,209		30,058		0.30		42,208,023		43,281		0.41		38,879,378		101,026		1.03
Accrued expenses and other liabilities	1,517,120						1,633,850						1,549,017
Total liabilities	41,654,329						43,841,873						40,428,395
Total TCF Financial Corporation shareholders' equity	5,687,196						5,675,089						5,667,436
Non-controlling interest in subsidiaries	19,995						22,638						23,683
Total equity	5,707,191						5,697,727						5,691,119
Total liabilities and equity	$	47,361,520					$	49,539,600					$	46,119,514
Net interest spread (FTE)					3.53	%					3.31	%					3.82	%
Net interest income (FTE) and net interest margin (FTE)			$	384,622	3.55	%			$	380,011	3.34	%			$	411,649	3.89	%
Reconciliation to Reported Net Interest Income
Net interest income and net interest margin (GAAP)			$	381,394	3.53	%			$	377,167	3.31	%			$	408,753	3.86	%
Adjustments for taxable equivalent interest⁽¹⁾⁽³⁾
Loans and leases			2,226						1,764						1,734
Tax-exempt investment securities			1,002						1,080						1,162
Total FTE adjustments			3,228						2,844						2,896
Net interest income and net interest margin (FTE)			$	384,622	3.55	%			$	380,011	3.34	%			$	411,649	3.89	%

(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.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields and Rates (Unaudited)
	Year Ended
	December 31, 2020						December 31, 2019
	Average				Yields &		Average				Yields &
(Dollars in thousands)	Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾		Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾
ASSETS:
Federal Home Loan Bank and Federal Reserve Bank stocks	$	379,482	$	13,356	3.52	%	$	210,001	$	6,030	2.87	%
Investment securities held-to-maturity	141,604		1,842		1.30		144,318		2,950		2.04
Investment securities available-for-sale:
Taxable	6,050,684		142,620		2.36		3,516,413		103,077		2.93
Tax-exempt⁽³⁾	713,658		20,470		2.87		541,525		14,746		2.72
Loans and leases held-for-sale	351,898		11,394		3.24		336,292		18,599		5.53
Loans and leases⁽³⁾⁽⁴⁾
Commercial and industrial	11,924,867		559,783		4.66		8,371,066		519,506		6.18
Commercial real estate	9,547,701		405,173		4.17		5,523,347		298,414		5.33
Lease financing	2,693,493		133,272		4.95		2,570,109		131,547		5.12
Residential mortgage	6,053,036		233,723		3.86		3,902,959		170,706		4.37
Home equity	3,405,718		179,628		5.27		3,272,760		214,116		6.54
Consumer installment	1,412,510		71,392		5.05		1,844,714		101,687		5.51
Total loans and leases⁽³⁾⁽⁴⁾	35,037,325		1,582,971		4.49		25,484,955		1,435,976		5.61
Interest-bearing deposits with banks and other	1,352,825		5,096		0.38		534,979		14,326		2.66
Total interest-earning assets	44,027,476		1,777,749		4.01		30,768,483		1,595,704		5.17
Other assets	4,373,462						2,758,447
Total assets	$	48,400,938					$	33,526,930
LIABILITIES AND EQUITY:
Noninterest-bearing deposits	$	9,844,485					$	5,622,092
Interest-bearing deposits:
Savings	9,093,600		28,408		0.31		7,203,987		52,087		0.72
Certificates of deposit	6,812,648		89,835		1.32		6,086,251		122,494		2.01
Checking	6,676,803		11,947		0.18		3,920,613		13,961		0.36
Money market	5,289,371		36,796		0.70		2,729,156		37,615		1.38
Total interest-bearing deposits	27,872,422		166,986		0.60		19,940,007		226,157		1.13
Total deposits	37,716,907		166,986		0.44		25,562,099		226,157		0.88
Borrowings:
Short-term borrowings	2,023,374		17,279		0.84		1,279,073		20,836		1.61
Long-term borrowings	1,459,004		42,996		2.93		1,592,915		51,236		3.19
Total borrowings	3,482,378		60,275		1.72		2,871,988		72,072		2.49
Total interest-bearing liabilities	31,354,800		227,261		0.72		22,811,995		298,229		1.30
Total deposits and borrowings	41,199,285		227,261		0.55		28,434,087		298,229		1.05
Accrued expenses and other liabilities	1,528,080						1,177,805
Total liabilities	42,727,365						29,611,892
Total TCF Financial Corporation shareholders' equity	5,649,567						3,889,204
Non-controlling interest in subsidiaries	24,006						25,834
Total equity	5,673,573						3,915,038
Total liabilities and equity	$	48,400,938					$	33,526,930
Net interest spread (FTE)					3.46	%					4.12	%
Net interest income (FTE) and net interest margin (FTE)			$	1,550,488	3.50	%			$	1,297,475	4.20	%
Reconciliation to Reported Net Interest Income
Net interest income and net interest margin (GAAP)			$	1,538,401	3.47	%			$	1,289,032	4.17	%
Adjustments for taxable equivalent interest⁽¹⁾⁽³⁾
Loans			7,785						5,348
Tax-exempt investment securities			4,302						3,095
Total FTE adjustments			12,087						8,443
Net interest income and net interest margin (FTE)			$	1,550,488	3.50	%			$	1,297,475	4.20	%

(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.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Quarterly Average Balance Sheets (Unaudited)

	Quarter Ended										Change From
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30, 2020					Dec. 31, 2019
(Dollars in thousands)	2020		2020		2020		2020		2019		$			%		$			%
ASSETS:
Federal Home Loan Bank and Federal Reserve Bank stocks	$	301,460	$	361,320	$	401,532	$	454,675	$	388,640	$	(59,860	)	(16.6	)%	$	(87,180	)	(22.4	)%
Investment securities held-to-maturity	162,590		135,332		132,054		136,277		140,434		27,258			20.1		22,156			15.8
Investment securities available-for-sale:
Taxable	6,553,126		6,021,643		5,730,762		5,892,006		4,960,520		531,483			8.8		1,592,606			32.1
Tax-exempt	652,743		685,652		743,744		773,468		778,994		(32,909		)	(4.8	)	(126,251		)	(16.2	)
Loans and leases held-for-sale	419,704		490,886		356,671		138,058		1,121,326		(71,182		)	(14.5	)	(701,622		)	(62.6	)
Loans and leases⁽¹⁾ :
Commercial and industrial	11,425,226		11,740,727		12,713,714		11,827,315		10,955,937		(315,501		)	(2.7	)	469,289			4.3
Commercial real estate	9,623,256		9,616,301		9,658,124		9,291,540		9,057,834		6,955			0.1		565,422			6.2
Lease financing	2,700,298		2,679,142		2,712,291		2,682,323		2,616,360		21,156			0.8		83,938			3.2
Residential mortgage	5,788,514		5,987,754		6,326,227		6,113,279		6,023,647		(199,240		)	(3.3	)	(235,133		)	(3.9	)
Home equity	3,202,321		3,399,468		3,509,107		3,514,278		3,604,153		(197,147		)	(5.8	)	(401,832		)	(11.1	)
Consumer installment	1,288,382		1,386,448		1,459,446		1,517,412		1,546,952		(98,066		)	(7.1	)	(258,570		)	(16.7	)
Total loans and leases⁽¹⁾	34,027,997		34,809,840		36,378,909		34,946,147		33,804,883		(781,843		)	(2.2	)	223,114			0.7
Interest-bearing deposits with banks and other	706,114		2,572,254		1,587,665		538,971		656,555		(1,866,140		)	(72.5	)	49,559			7.5
Total interest-earning assets	42,823,734		45,076,927		45,331,337		42,879,602		41,851,352		(2,253,193		)	(5.0	)	972,382			2.3
Other assets	4,537,786		4,462,673		4,384,779		4,105,824		4,268,162		75,113			1.7		269,624			6.3
Total assets	$	47,361,520	$	49,539,600	$	49,716,116	$	46,985,426	$	46,119,514	$	(2,178,080	)	(4.4	)%	$	1,242,006		2.7	%
LIABILITIES AND EQUITY:
Noninterest-bearing deposits	$	10,942,071	$	10,654,288	$	9,830,687	$	7,929,933	$	7,968,769	$	287,783		2.7	%	$	2,973,302		37.3	%
Interest-bearing deposits:
Savings	9,395,608		9,301,198		9,082,184		8,589,815		8,404,460		94,410			1.0		991,148			11.8
Certificates of deposit	5,784,759		6,657,697		7,491,502		7,329,632		7,825,573		(872,938		)	(13.1	)	(2,040,814		)	(26.1	)
Checking	7,029,938		7,029,914		6,649,288		5,990,309		5,891,566		24			0.0		1,138,372			19.3
Money market	5,478,528		5,501,747		5,380,547		4,792,248		4,463,476		(23,219		)	(0.4	)	1,015,052			22.7
Total interest-bearing deposits	27,688,833		28,490,556		28,603,521		26,702,004		26,585,075		(801,723		)	(2.8	)	1,103,758			4.2
Total deposits	38,630,904		39,144,844		38,434,208		34,631,937		34,553,844		(513,940		)	(1.3	)	4,077,060			11.8
Borrowings:
Short-term borrowings	252,749		2,153,030		3,016,490		2,689,262		2,585,682		(1,900,281		)	(88.3	)	(2,332,933		)	(90.2	)
Long-term borrowings	1,253,556		910,149		1,072,394		2,608,204		1,739,852		343,407			37.7		(486,296		)	(28.0	)
Total borrowings	1,506,305		3,063,179		4,088,884		5,297,466		4,325,534		(1,556,874		)	(50.8	)	(2,819,229		)	(65.2	)
Total interest-bearing liabilities	29,195,138		31,553,735		32,692,405		31,999,470		30,910,609		(2,358,597		)	(7.5	)	(1,715,471		)	(5.5	)
Total deposits and borrowings	40,137,209		42,208,023		42,523,092		39,929,403		38,879,378		(2,070,814		)	(4.9	)	1,257,831			3.2
Accrued expenses and other liabilities	1,517,120		1,633,850		1,534,769		1,425,536		1,549,017		(116,730		)	(7.1	)	(31,897		)	(2.1	)
Total liabilities	41,654,329		43,841,873		44,057,861		41,354,939		40,428,395		(2,187,544		)	(5.0	)	1,225,934			3.0
Total TCF Financial Corporation shareholders' equity	5,687,196		5,675,089		5,630,133		5,605,159		5,667,436		12,107			0.2		19,760			0.3
Non-controlling interest in subsidiaries	19,995		22,638		28,122		25,328		23,683		(2,643		)	(11.7	)	(3,688		)	(15.6	)
Total equity	5,707,191		5,697,727		5,658,255		5,630,487		5,691,119		9,464			0.2		16,072			0.3
Total liabilities and equity	$	47,361,520	$	49,539,600	$	49,716,116	$	46,985,426	$	46,119,514	$	(2,178,080	)	(4.4	)%	$	1,242,006		2.7	%

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Quarterly Yields and Rates⁽¹⁾⁽²⁾ (Unaudited)

	Quarter Ended										Change From
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,			Dec. 31,
	2020		2020		2020		2020		2019		2020			2019
ASSETS:
Federal Home Loan Bank and Federal Reserve Bank stocks	3.77	%	3.27	%	4.38	%	2.79	%	3.24	%	50		bps	53		bps
Investment securities held-to-maturity	1.57		1.69		0.21		1.64		2.53		(12	)		(96	)
Investment securities available-for-sale:
Taxable	2.12		2.33		2.26		2.74		2.85		(21	)		(73	)
Tax-exempt⁽³⁾	2.93		2.90		2.81		2.85		2.84		3			9
Loans and leases held-for-sale	2.56		3.13		3.73		4.53		5.58		(57	)		(302	)
Loans and leases⁽³⁾
Commercial and industrial	4.51		4.30		4.41		5.42		5.63		21			(112	)
Commercial real estate	3.91		3.90		3.91		5.01		5.38		1			(147	)
Lease financing	4.83		4.88		4.99		5.09		5.11		(5	)		(28	)
Residential mortgage	3.64		3.86		3.93		4.02		4.05		(22	)		(41	)
Home equity	4.93		5.09		5.19		5.85		5.93		(16	)		(100	)
Consumer installment	5.06		5.04		4.88		5.23		4.97		2			9
Total loans and leases⁽³⁾	4.28		4.26		4.33		5.08		5.24		2			(96	)
Interest-bearing deposits with banks and other	0.34		0.16		0.30		1.72		2.07		18			(173	)

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

LIABILITIES:
Interest-bearing deposits:

Savings	0.07		0.17		0.40		0.64		0.71		(10	)		(64	)
Certificates of deposit	0.80		1.10		1.44		1.81		1.97		(30	)		(117	)
Checking	0.10		0.11		0.14		0.39		0.51		(1	)		(41	)
Money market	0.42		0.53		0.66		1.25		1.38		(11	)		(96	)
Total interest-bearing deposits	0.30		0.44		0.66		1.02		1.15		(14	)		(85	)
Total deposits	0.22		0.32		0.49		0.78		0.88		(10	)		(66	)
Borrowings:
Short-term borrowings	0.16		0.46		0.54		1.56		1.73		(30	)		(157	)
Long-term borrowings	2.87		3.91		3.40		2.42		2.87		(104	)		0
Total borrowings	2.41		1.48		1.29		1.98		2.19		93			22

Total interest-bearing liabilities	0.41		0.55		0.74		1.18		1.29		(14	)		(88	)
Total deposits and borrowings	0.30		0.41		0.57		0.94		1.03		(11	)		(73	)

Net interest margin (GAAP)	3.53		3.31		3.33		3.73		3.86		22			(33	)
Net interest margin (FTE)	3.55		3.34		3.35		3.76		3.89		21			(34	)

(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%.

*TCF FINANCIAL CORPORATION AND SUBSIDIARIES*
Composition of Loans (Unaudited)

	Quarter Ended										Change From
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30, 2020					Dec. 31, 2019
(Dollars in thousands)	2020		2020		2020		2020		2019		$			%		$			%
Commercial and industrial	$	11,422,383	$	11,557,237	$	12,200,721	$	12,326,943	$	11,439,602	$	(134,854	)	(1.2	)%	$	(17,219	)	(0.2	)%
Commercial real estate	9,702,587		9,627,330		9,628,344		9,486,904		9,136,870		75,257			0.8		565,717			6.2
Lease financing	2,817,231		2,724,686		2,707,402		2,708,998		2,699,869		92,545			3.4		117,362			4.3
Total commercial loan and lease portfolio	23,942,201		23,909,253		24,536,467		24,522,845		23,276,341		32,948			0.1		665,860			2.9
Residential mortgage	6,182,045		5,790,251		6,123,118		6,435,314		6,179,805		391,794			6.8		2,240			0.0
Home equity	3,108,736		3,302,983		3,445,584		3,453,502		3,498,907		(194,247		)	(5.9	)	(390,171		)	(11.2	)
Consumer installment	1,233,426		1,341,204		1,430,655		1,509,953		1,542,411		(107,778		)	(8.0	)	(308,985		)	(20.0	)
Total consumer loan portfolio	10,524,207		10,434,438		10,999,357		11,398,769		11,221,123		89,769			0.9		(696,916		)	(6.2	)
Total	$	34,466,408	$	34,343,691	$	35,535,824	$	35,921,614	$	34,497,464	$	122,717		0.4	%	$	(31,056	)	(0.1	)%

Composition of Deposits (Unaudited)

	Quarter Ended										Change From
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30, 2020					Dec. 31, 2019
(Dollars in thousands)	2020		2020		2020		2020		2019		$			%		$			%
Noninterest-bearing deposits	$	11,036,086	$	10,691,041	$	10,480,245	$	8,237,916	$	7,970,590	$	345,045		3.2	%	$	3,065,496		38.5		%
Interest-bearing deposits:
Savings	9,509,963		9,295,467		9,310,362		8,703,864		8,506,058		214,496			2.3		1,003,905			11.8
Checking	7,222,275		7,453,504		6,693,092		6,289,046		5,966,178		(231,229		)	(3.1	)	1,256,097			21.1
Certificates of deposit	5,524,381		6,334,760		7,142,996		7,463,192		7,455,556		(810,379		)	(12.8	)	(1,931,175		)	(25.9	)
Money market	5,563,614		5,397,325		5,584,177		5,105,285		4,570,081		166,289			3.1		993,533			21.7
Total interest-bearing deposits	27,820,233		28,481,056		28,730,627		27,561,387		26,497,873		(660,823		)	(2.3	)	1,322,360			5.0
Total deposits	$	38,856,319	$	39,172,097	$	39,210,872	$	35,799,303	$	34,468,463	$	(315,778	)	(0.8	)%	$	4,387,856		12.7		%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Summary of Credit Quality Data

Allowance for Credit Losses (Unaudited)

	Dec. 31,					Sep. 30,					Jun. 30,					Mar. 31,					Jan. 1,		Dec. 31,
	2020					2020					2020					2020					2020		2019
(Dollars in thousands)	Balance		Reserve Rate			Balance		Reserve Rate			Balance		Reserve Rate			Balance		Reserve Rate			Adjusted for adoption of CECL		Balance		Reserve Rate
Allowance for loan and lease losses
Commercial and industrial	$	155,665		1.36	%	$	145,814		1.26	%	$	122,024		1.00	%	$	117,507		0.95	%	$	93,884	$	42,430		0.38	%
Commercial real estate	192,331			1.98		197,892			2.06		162,364			1.69		86,209			0.91		67,620		27,308			0.29
Lease financing	40,978			1.45		36,386			1.34		19,041			0.70		27,610			1.02		21,631		14,742			0.55
Residential mortgage	72,315			1.17		62,006			1.07		79,479			1.30		97,185			1.51		72,939		8,099			0.13
Home equity	45,761			1.47		49,003			1.48		56,824			1.65		57,694			1.67		47,003		17,795			0.51
Consumer installment	18,818			1.53		24,128			1.80		21,382			1.49		20,178			1.34		15,967		2,678			0.17
Total allowance for loan and lease losses	525,868			1.53		515,229			1.50		461,114			1.30		406,383			1.13		319,044		113,052			0.33
Reserve for unfunded lending commitments	23,313					34,129					42,788					22,188					18,235		3,528
Total allowance for credit losses	$	549,181		1.59	%	$	549,358		1.60	%	$	503,902		1.42	%	$	428,571		1.19	%	$	337,279	$	116,580		0.34	%

Changes in Allowance for Credit Losses

	Quarter Ended															Change From
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,				Dec. 31,
(Dollars in thousands)	2020			2020			2020			2020			2019			2020				2019
Allowance for loan and lease losses
Balance, beginning of period	$	515,229		$	461,114		$	406,383		$	113,052		$	121,218		$	54,115			$	394,011
Impact of CECL adoption	—			—			—			205,992			—			—				—
Adjusted balance, beginning of period	515,229			461,114			406,383			319,044			121,218			54,115				394,011
Charge-offs	(29,593		)	(32,235		)	(9,958		)	(14,729		)	(16,891		)	2,642				(12,702		)
Recoveries	17,958			7,659			6,563			9,252			10,654			10,299				7,304
Net (charge-offs) recoveries	(11,635		)	(24,576		)	(3,395		)	(5,477		)	(6,237		)	12,941				(5,398		)
Provision for credit losses related to loans and leases⁽¹⁾	22,634			78,323			58,126			92,990			14,403			(55,689		)		8,231
Other⁽²⁾	(360		)	368			—			(174		)	(16,332		)	(728		)		15,972
Balance, end of period	525,868			515,229			461,114			406,383			113,052			10,639				412,816
Reserve for unfunded lending commitments
Balance, beginning of period	34,129			42,788			22,188			3,528			3,461			(8,659			)	30,668
Impact of CECL adoption	—			—			—			14,707			—			—				—
Adjusted balance, beginning of period	34,129			42,788			22,188			18,235			3,461			(8,659		)		30,668
Provision (benefit) for credit losses related to unfunded lending commitments⁽¹⁾	(10,816		)	(8,659		)	20,600			3,953			67			(2,157		)		(10,883		)
Balance, end of period	23,313			34,129			42,788			22,188			3,528			(10,816		)		19,785
Total allowance for credit losses	$	549,181		$	549,358		$	503,902		$	428,571		$	116,580		$	(177	)		$	432,601

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Summary of Credit Quality Data (Unaudited), Continued

Net (Charge-offs) Recoveries

	Quarter Ended
	Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,
	2020				2020				2020				2020				2019
(Dollars in thousands)	Balance		Rate⁽¹⁾		Balance		Rate⁽¹⁾		Balance		Rate⁽¹⁾		Balance		Rate⁽¹⁾		Balance		Rate⁽¹⁾
Commercial and industrial	$	(672)	0.02	%	$	(22,201)	0.76	%	$	9	—	%	$	(4,022)	0.14	%	$	(5,736)	0.21	%
Commercial real estate	(6,050)		0.25		(144)		0.01		(644)		0.03		563		(0.02)		(7)		—
Lease financing	(1,748)		0.26		(161)		0.02		(1,392)		0.21		(878)		0.13		(1,749)		0.27
Residential mortgage	216		(0.01)		803		(0.05)		(871)		0.06		355		(0.02)		1,552		(0.10)
Home equity	(182)		0.02		(237)		0.03		(335)		0.04		(246)		0.03		2,280		(0.25)
Consumer installment	(3,199)		0.99		(2,636)		0.76		(162)		0.04		(1,249)		0.33		(2,577)		0.67
Total net (charge-offs) recoveries	$	(11,635)	0.14	%	$	(24,576)	0.28	%	$	(3,395)	0.04	%	$	(5,477)	0.06	%	$	(6,237)	0.07	%

(1)

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

Over 90-Day Delinquencies as a Percentage of Portfolio⁽¹⁾
											Change From
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,			Dec. 31,
	2020		2020		2020		2020		2019		2020			2019
Commercial and industrial	0.01	%	0.03	%	0.02	%	—	%	—	%	(2	)	bps	1		bps
Commercial real estate	—		—		—		0.02		0.02		—			(2	)
Lease financing	0.14		0.13		0.18		0.11		0.07		1			7
Residential mortgage	0.03		0.02		0.01		0.01		0.01		1			2
Home equity	—		—		—		0.01		—		—			—
Consumer installment	—		—		—		—		0.01		—			(1	)
Subtotal	0.02		0.02		0.02		0.02		0.01		—			1
Portfolios acquired with deteriorated credit quality⁽²⁾	N/A		N/A		N/A		—		10.43		N/A			N/A
Total delinquencies	0.02	%	0.02	%	0.02	%	0.02	%	0.09	%	—			(7	)

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Summary of Credit Quality Data (Unaudited), Continued

Nonperforming Assets
																Change From
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,				Dec. 31,
(Dollars in thousands)		2020			2020			2020			2020			2019			2020				2019
Nonaccrual loans and leases:
Commercial and industrial	$	259,439		$	140,492		$	98,184		$	84,157		$	53,812		$	118,947			$	205,627
Commercial real estate		154,439			70,252			57,521			47,032			29,735			84,187				124,704
Lease financing		90,822			42,023			18,756			13,170			10,957			48,799				79,865
Total commercial		504,700			252,767			174,461			144,359			94,504			251,933				410,196
Residential mortgage		97,653			65,235			67,762			61,980			38,577			32,418				59,076
Home equity		69,383			52,184			47,560			43,147			35,863			17,199				33,520
Consumer installment		5,566			6,535			1,668			989			714			(969	)			4,852
Total consumer		172,602			123,954			116,990			106,116			75,154			48,648				97,448
Total nonaccrual loans and leases⁽¹⁾		677,302			376,721			291,451			250,475			169,658			300,581				507,644
Other real estate owned		33,192			35,554			42,744			38,914			34,256			(2,362	)			(1,064	)
Total nonperforming assets	$	710,494		$	412,275		$	334,195		$	289,389		$	203,914		$	298,219			$	506,580

Nonaccrual loans and leases as a percentage of total loans and leases⁽¹⁾		1.97	%		1.10	%		0.82	%		0.70	%		0.49	%		87		bps		148		bps
Allowance for loan and lease losses as a percentage of nonaccrual loans and leases⁽¹⁾		77.64			136.77			158.21			162.24			66.64			(5,913	)			1,100
Allowance for credit losses as a percentage of nonaccrual loans and leases⁽¹⁾		81.08			145.83			172.89			171.10			68.71			(6,475	)			1,237
Nonperforming assets as a percentage of total loans and leases and other real estate owned⁽¹⁾		2.06			1.20			0.94			0.80			0.59			86				147

(1)

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

Consolidated Capital Information (Unaudited)
																Change From
(Dollars in thousands, except per share data)	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Dec. 31,
(Dollars in thousands, except per share data)	2020			2020			2020			2020			2019			2020			2019
Book value per common share	$	36.06		$	35.88		$	35.91		$	35.85		$	36.20		0.5		%	(0.4	)	%
Tangible book value per common share⁽¹⁾	26.49			26.27			26.25			26.16			26.60			0.8			(0.4	)
Common equity to assets	11.51		%	11.50		%	10.92		%	11.23		%	11.87		%	1		bps	(36	)	bps
Tangible common equity to tangible assets⁽¹⁾	8.72			8.68			8.22			8.45			9.01			4			(29	)

Regulatory Capital:⁽²⁾
Common equity Tier 1 capital	$	4,103,007		$	4,053,931		$	4,028,681		$	4,026,304		$	4,050,826		1.2		%	1.3		%
Tier 1 capital	4,290,793			4,244,609			4,221,283			4,225,755			4,236,648			1.1			1.3
Total capital	5,026,611			4,972,715			4,907,760			4,744,899			4,681,630			1.1			7.4

Common equity Tier 1 capital ratio	11.45		%	11.45		%	11.06		%	10.44		%	10.99		%	0		bps	46		bps
Tier 1 risk-based capital ratio	11.98			11.98			11.59			10.96			11.49			0			49
Total risk-based capital ratio	14.03			14.04			13.47			12.31			12.70			(1	)		133
Tier 1 leverage ratio	9.34			8.83			8.75			9.27			9.49			51			(15	)

(1)		See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.
(2)		December 31, 2020 amounts are preliminary pending completion and filing of the Corporation's regulatory reports. Regulatory capital ratios presented for periods in 2020 reflect our election of the five-year CECL transition for regulatory capital purposes.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)

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

		Quarter Ended
		Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
(Dollars in thousands, except per share data)		2020			2020			2020			2020			2019
Net income available to common shareholders	(a)	$	88,864		$	53,244		$	21,270		$	49,406		$	109,905
Merger-related expenses		31,530			54,011			81,619			36,728			47,025
Notable items:
Sale of legacy TCF auto finance portfolio and related expenses⁽¹⁾		—			—			901			3,063			12,864
Gains on sales of branches, write-down of company-owned vacant land parcels and branch exit costs, net⁽²⁾		—			—			(14,166		)	—			3,494
Pension fair valuation adjustment⁽³⁾		—			—			—			—			6,341
Loan servicing rights (recovery) impairment⁽⁴⁾		357			154			8,858			8,236			(638		)
Total notable items		357			154			(4,407		)	11,299			22,061
Total merger-related and notable items		31,887			54,165			77,212			48,027			69,086
Related income tax expense, net of benefits⁽⁵⁾		(7,191		)	(11,207		)	(16,114		)	(10,071		)	(19,904		)
Total adjustments, net of tax		24,696			42,958			61,098			37,956			49,182
Adjusted earnings allocated to common stock	(b)	$	113,560		$	96,202		$	82,368		$	87,362		$	159,087

Weighted-average common shares outstanding used in diluted earnings per common share calculation	(c)	152,084,428			151,821,592			151,660,139			152,114,017			152,658,766

Diluted earnings per common share	(a)/(c)	$	0.58		$	0.35		$	0.14		$	0.32		$	0.72
Adjusted diluted earnings per common share	(b)/(c)	0.75			0.63			0.54			0.57			1.04

Net income attributable to TCF		$	91,358		$	55,738		$	23,764		$	51,899		$	112,399
Total adjustments, net of tax		24,696			42,958			61,098			37,956			49,182
Adjusted net income attributable to TCF		$	116,054		$	98,696		$	84,862		$	89,855		$	161,581

(1)		Second quarter 2020 amount included within other noninterest expense ($0.8 million) and compensation and employee benefits ($0.1 million). First quarter 2020 amount included within occupancy and equipment ($1.6 million), compensation and employee benefits ($0.9 million) and other noninterest expense ($0.6 million). Fourth quarter 2019 amount included within net gains (losses) on sales of loans and leases ($8.2 million), other noninterest expense ($2.2 million), occupancy and equipment ($1.5 million) and compensation and employee benefits ($0.9 million).
(2)		Second quarter 2020 amount included within other noninterest income ($14.7 million net gain) and other noninterest expense ($0.6 million). Fourth quarter of 2019 included within other noninterest expense.
(3)		Included within other noninterest expense.
(4)		Included within other noninterest income.
(5)		Included within income tax expense (benefit).

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued

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

		Quarter Ended
		Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,
(Dollars in thousands)		2020				2020				2020				2020				2019
Adjusted net income after tax expense:
Income after tax expense	(a)	$	92,690			$	57,302			$	26,233			$	53,816			$	114,456
Merger-related expenses		31,530				54,011				81,619				36,728				47,025
Notable items		357				154				(4,407		)		11,299				22,061
Related income tax expense, net of tax benefits		(7,191		)		(11,207		)		(16,114		)		(10,071		)		(19,904		)
Adjusted net income after tax expense for adjusted ROAA calculation	(b)	117,386				100,260				87,331				91,772				163,638
Net income available to common shareholders	(c)	88,864				53,244				21,270				49,406				109,905
Other intangibles amortization		5,498				5,498				5,516				5,480				5,505
Related income tax expense		(1,240		)		(1,137		)		(1,151		)		(1,149		)		(1,284		)
Adjusted net income available to common shareholders used in adjusted ROATCE calculation	(d)	93,122				57,605				25,635				53,737				114,126

Adjusted net income available to common shareholders:
Net income available to common shareholders		88,864				53,244				21,270				49,406				109,905
Notable items		357				154				(4,407		)		11,299				22,061
Merger-related expenses		31,530				54,011				81,619				36,728				47,025
Related income tax expense, net of tax benefits		(7,191		)		(11,207		)		(16,114		)		(10,071		)		(19,904		)
Adjusted net income available to common shareholders used in adjusted ROACE calculation	(e)	113,560				96,202				82,368				87,362				159,087
Other intangibles amortization		5,498				5,498				5,516				5,480				5,505
Related income tax expense		(1,240		)		(1,137		)		(1,151		)		(1,149		)		(1,284		)
Adjusted net income available to common shareholders used in adjusted ROATCE calculation	(f)	117,818				100,563				86,733				91,693				163,308
Average balances:
Average assets	(g)	47,361,520				49,539,600				49,716,116				46,985,426				46,119,514
Total equity		5,707,191				5,697,727				5,658,255				5,630,487				5,691,119
Non-controlling interest in subsidiaries		(19,995		)		(22,638		)		(28,122		)		(25,328		)		(23,683		)
Total TCF Financial Corporation shareholders' equity		5,687,196				5,675,089				5,630,133				5,605,159				5,667,436
Preferred stock		(169,302		)		(169,302		)		(169,302		)		(169,302		)		(169,302		)
Average total common shareholders' equity used in ROACE calculation	(h)	5,517,894				5,505,787				5,460,831				5,435,857				5,498,134
Goodwill, net		(1,313,046		)		(1,313,046		)		(1,313,046		)		(1,301,080		)		(1,266,166		)
Other intangibles, net		(149,140		)		(155,142		)		(160,841		)		(166,298		)		(211,294		)
Average tangible common shareholders' equity used in ROATCE calculation	(i)	$	4,055,708			$	4,037,599			$	3,986,944			$	3,968,479			$	4,020,674

ROAA⁽¹⁾	(a)/(g)	0.78			%	0.46			%	0.21			%	0.46			%	0.99			%
Adjusted ROAA⁽¹⁾	(b)/(g)	0.99				0.81				0.70				0.78				1.42
ROACE⁽¹⁾	(c)/(h)	6.44				3.87				1.56				3.64				8.00
Adjusted ROACE⁽¹⁾	(e)/(h)	8.23				6.99				6.03				6.43				11.57
ROATCE⁽¹⁾	(d)/(i)	9.18				5.71				2.57				5.42				11.35
Adjusted ROATCE⁽¹⁾	(f)/(i)	11.62				9.96				8.70				9.24				16.25

(1)

Annualized.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued

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

		Quarter Ended
		Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,
(Dollars in thousands)		2020				2020				2020				2020				2019
Noninterest expense	(a)	$	379,091			$	373,440			$	400,241			$	374,599			$	416,571
Merger-related expenses		(31,530		)		(54,011		)		(81,619		)		(36,728		)		(47,025		)
Write-down of company-owned vacant land parcels and branch exit costs		—				—				(551		)		—				(3,494		)
Expenses related to the sale of Legacy TCF auto finance portfolio		—				—				(901		)		(3,063		)		(4,670		)
Pension fair valuation adjustment		—				—				—				—				(6,341		)
Adjusted noninterest expense		347,561				319,429				317,170				334,808				355,041
Lease financing equipment depreciation		(18,610		)		(17,932		)		(18,212		)		(18,450		)		(18,629		)
Amortization of intangibles		(5,498		)		(5,498		)		(5,516		)		(5,480		)		(5,505		)
Historic tax credit amortization		(3,591		)		(1,758		)		(179		)		(1,521		)		(4,030		)
Adjusted noninterest expense, efficiency ratio	(b)	319,862				294,241				293,263				309,357				326,877

Net interest income		381,394				377,167				378,359				401,481				408,753
Noninterest income		127,236				118,810				133,054				136,963				158,052
Total revenue	(c)	508,630				495,977				511,413				538,444				566,805

Noninterest income		127,236				118,810				133,054				136,963				158,052
Gain on sales of branches		—				—				(14,717		)		—				—
Sale of Legacy TCF auto finance portfolio		—				—				—				—				8,194
Loan servicing rights impairment (recovery)		357				154				8,858				8,236				(638		)
Adjusted noninterest income		127,593				118,964				127,195				145,199				165,608
Net interest income		381,394				377,167				378,359				401,481				408,753
Net interest income FTE adjustment		3,228				2,844				3,032				2,983				2,896
Adjusted net interest income (FTE)		384,622				380,011				381,391				404,464				411,649
Lease financing equipment depreciation		(18,610		)		(17,932		)		(18,212		)		(18,450		)		(18,629		)
Adjusted total revenue, efficiency ratio	(d)	$	493,605			$	481,043			$	490,374			$	531,213			$	558,628

Efficiency ratio	(a)/(c)	74.53			%	75.29			%	78.26			%	69.57			%	73.49			%
Adjusted efficiency ratio	(b)/(d)	64.80				61.17				59.80				58.24				58.51

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued

Computation of adjusted net interest income and margin:

	Quarter Ended
	Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,
(Dollars in thousands)	2020				2020				2020				2020				2019
Net interest income	$	381,394			$	377,167			$	378,359			$	401,481			$	408,753
Adjustments for taxable equivalent interest (FTE)	3,228				2,844				3,032				2,983				2,896
Net interest income (FTE)	384,622				380,011				381,391				404,464				411,649
Purchase accounting accretion and amortization	(22,997		)		(17,710		)		(18,209		)		(25,258		)		(30,523		)
Net fees recognized on PPP loans	(16,071		)		(11,886		)		(7,805		)		—				—
Interest recognition on PPP loans⁽¹⁾	(3,051		)		(2,824		)		(1,759		)		—				—
Total PPP loans impact	(19,122		)		(14,710		)		(9,564		)		—				—
Adjusted net interest income, including FTE adjustment and excluding purchase accounting accretion and amortization and PPP impact	$	342,503			$	347,591			$	353,618			$	379,206			$	381,126
Net interest margin (GAAP)	3.53			%	3.31			%	3.33			%	3.73			%	3.86			%
FTE impact	0.02				0.03				0.02				0.03				0.03
Net interest margin (FTE)	3.55				3.34				3.35				3.76				3.89
Purchase accounting accretion and amortization impact	(0.21		)		(0.16		)		(0.16		)		(0.23		)		(0.29		)
PPP loans impact⁽²⁾	(0.04		)		0.01				0.01				—				—
Adjusted net interest margin, excluding purchase accounting accretion and amortization and PPP loans impact (FTE)	3.30			%	3.19			%	3.20			%	3.53			%	3.60			%

(1)		Interest income recorded on PPP loans less funding costs.
(2)		The exclusion of PPP loans additionally reduces average earning assets by $1.7 billion and $1.8 billion in the fourth and third quarters of 2020, respectively.

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

		Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,
(Dollars in thousands, except per share data)		2020				2020				2020				2020				2019
Total equity		$	5,689,297			$	5,658,420			$	5,658,555			$	5,655,833			$	5,727,241
Non-controlling interest in subsidiaries		(18,484		)		(21,376		)		(23,300		)		(30,149		)		(20,226		)
Total TCF Financial Corporation shareholders' equity		5,670,813				5,637,044				5,635,255				5,625,684				5,707,015
Preferred stock		(169,302		)		(169,302		)		(169,302		)		(169,302		)		(169,302		)
Total common stockholders' equity	(a)	5,501,511				5,467,742				5,465,953				5,456,382				5,537,713
Goodwill, net		(1,313,046		)		(1,313,046		)		(1,313,046		)		(1,313,046		)		(1,299,878		)
Other intangibles, net		(146,377		)		(151,875		)		(157,373		)		(162,887		)		(168,368		)
Tangible common shareholders' equity	(b)	4,042,088				4,002,821				3,995,534				3,980,449				4,069,467

Total assets	(c)	47,802,487				47,565,789				50,062,460				48,594,383				46,651,553
Goodwill, net		(1,313,046		)		(1,313,046		)		(1,313,046		)		(1,313,046		)		(1,299,878		)
Other intangibles, net		(146,377		)		(151,875		)		(157,373		)		(162,887		)		(168,368		)
Tangible assets	(d)	$	46,343,064			$	46,100,868			$	48,592,041			$	47,118,450			$	45,183,307

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

Common equity to assets	(a) / (c)	11.51			%	11.50			%	10.92			%	11.23			%	11.87			%
Tangible common equity to tangible assets	(b) / (d)	8.72				8.68				8.22				8.45				9.01

Book value per common share	(a) / (e)	$	36.06			$	35.88			$	35.91			$	35.85			$	36.20
Tangible book value per common share	(b) / (e)	26.49				26.27				26.25				26.16				26.60

*TCF FINANCIAL CORPORATION AND SUBSIDIARIES*
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued

Composition of Loans and Allowance for Credit Losses excluding PPP

	Quarter Ended						Change From
	Dec. 31,			Sep. 30,			Sep. 30, 2020
(Dollars in thousands)		2020			2020		$			%
Commercial and industrial	$	11,422,383		$	11,557,237		$	(134,854	)	(1.2	)%
Commercial real estate		9,702,587			9,627,330		75,257			0.8
Lease financing		2,817,231			2,724,686		92,545			3.4
Total commercial loan and lease portfolio		23,942,201			23,909,253		32,948			0.1
Residential mortgage		6,182,045			5,790,251		391,794			6.8
Home equity		3,108,736			3,302,983		(194,247		)	(5.9	)
Consumer installment		1,233,426			1,341,204		(107,778		)	(8.0	)
Total consumer loan portfolio		10,524,207			10,434,438		89,769			0.9
Total loans and leases		34,466,408			34,343,691		122,717			0.4
PPP (Commercial and industrial)		1,553,908			1,836,850		(282,942		)	(15.4	)
Loans and leases excluding PPP loans
Commercial and industrial		9,868,475			9,720,387		148,088			1.5
Commercial real estate		9,702,587			9,627,330		75,257			0.8
Lease financing		2,817,231			2,724,686		92,545			3.4
Total commercial loan and lease portfolio		22,388,293			22,072,403		315,890			1.4
Residential mortgage		6,182,045			5,790,251		391,794			6.8
Home equity		3,108,736			3,302,983		(194,247		)	(5.9	)
Consumer installment		1,233,426			1,341,204		(107,778		)	(8.0	)
Total consumer loan portfolio		10,524,207			10,434,438		89,769			0.9
Total loans and leases, excluding PPP loans	$	32,912,500		$	32,506,841		$	405,659		1.2	%
Allowance for credit losses	$	549,181		$	549,358		$	(177	)	—	%
Allowance for credit losses as a % of total loans and leases		1.59	%		1.60	%	(1		)	bp
Allowance for credit losses as a % of loans and leases, excluding PPP loans		1.67			1.69		(2		)

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Source: TCF Financial Corporation

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TCF Financial Corporation(NasdaqGS:TCF) dropped from S&P Composite 1500	21-06-09	CI
TCF Financial Corporation(NasdaqGS:TCF) dropped from S&P 400 Financials	21-06-09	CI
TCF Financial Corporation(NasdaqGS:TCF) dropped from S&P 1000	21-06-09	CI
TCF Financial Corporation(NasdaqGS:TCF) dropped from S&P TMI Index	21-06-09	CI
TCF Financial Corporation(NasdaqGS:TCF) dropped from S&P Banks Select Industry Index	21-06-09	CI
TCF Financial Corporation(NasdaqGS:TCF) dropped from S&P Regional Banks Select Industry Index	21-06-09	CI
TCF Financial Corporation(NasdaqGS:TCF) dropped from S&P Global BMI Index	21-06-09	CI
TCF Financial Corporation's Equity Buyback announced on October 28, 2019, has expired.	21-06-08	CI
Huntington Bancshares Incorporated completed the acquisition of TCF Financial Corporation.	21-06-08	CI
Sector Update: Financial Stocks Receive Late Bounce, Ending Slightly Higher	21-06-04	MT
Sector Update: Financial Stocks Weakening This Afternoon	21-06-04	MT
Targa Resources : , Envestnet to Join S&P MidCap 400; Both Stocks Rally After Hours	21-06-03	MT
Huntington Bancshares Incorporated : Federal Reserve approves acquisition of TCF Financial by Huntington Bancshares	21-05-25	RE
Insider Trends: Insider Sale at TCF Financial Interrupting 90-Days of Buying	21-05-17	MT
Insider Trends: Insider Sale at TCF Financial Easing 90-Days of Buying	21-05-17	MT
Insider Trends: Insider at TCF Financial Sells Stock for Taxes Interrupting 90-Day Buy Trend	21-05-10	MT
Insider Trends: Insider at TCF Financial Makes Shares Sale for Tax Slowing 90-Day Buy Trend	21-05-10	MT
Tranche Update on TCF Financial Corporation's Equity Buyback Plan announced on October 28, 2019.	21-05-07	CI
TCF Financial Corp. Appoints Darrel German as Regional President of its Minnesota Region	21-04-26	CI
TCF FINANCIAL : Wedbush Adjusts TCF Financial's Price Target to $54 From $57, Keeps Outperform Rating	21-04-26	MT
TCF Financial : Posts Increase in Q1 Adjusted Profit, Revenue Declines	21-04-22	MT
TCF Financial : Earnings Flash (TCF) TCF FINANCIAL CORPORATION Reports Q1 Revenue $513.9M	21-04-22	MT

Chemical Financial Co.

Equities

TCF

US8723071036

TCF Financial : Reports Fourth Quarter 2020 Results

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