TCF Reports Third Quarter 2019 Results and Announces $150 Million Share Repurchase Authorization

TCF also announces quarterly cash dividends on common and preferred stock

DETROIT--(BUSINESS WIRE)--TCF Financial Corporation (NYSE: TCF):

Third Quarter Highlights

• Quarterly net income of $22.1 million, or $0.15 per diluted share
• Adjusted diluted earnings per common share of $0.98⁽¹⁾, excluding $106.2 million, or $0.83 per share, after-tax impact of merger-related expenses and non-core items
• Successfully closed merger of equals between Legacy TCF Financial Corporation (Legacy TCF) and Chemical Financial Corporation (Chemical) on August 1, 2019
• Purchase accounting fair value credit mark of $183 million and interest rate mark of $66 million on the Chemical loans
• Efficiency ratio of 91.32%; adjusted efficiency ratio of 58.74%⁽¹⁾
• Return on average common equity ("ROACE") of 1.75%; return on average tangible common equity ("ROATCE") of 2.68%⁽¹⁾; adjusted ROATCE of 14.96%⁽¹⁾
• Repositioned assets through investment securities sales and termination of interest rate swaps to lower the risk profile, reduce asset sensitivity and and enhance capital efficiency and liquidity
• Transferred Legacy TCF auto finance portfolio to held-for-sale ($1.2 billion at September 30, 2019), resulting in a $19.3 million pre-tax loss, or $14.7 million after tax
• Net charge-off rate as a percentage of average loans and leases of 0.39%, annualized
• Common equity Tier 1 capital ratio of 10.88%
• Announced $150 million share repurchase authorization on October 28, 2019
• Announced quarterly cash dividends on common stock of $0.35 per share on October 28, 2019

Merger-related Expenses and Non-core Items in the Third Quarter⁽¹⁾

• Pre-tax merger-related expenses of $111.3 million, $82.9 million net of tax, or 64 cents per diluted common share
• Pre-tax loss of $41.1 million, $23.3 million net of tax, or 19 cents per diluted common share related to non-core items, see summary of non-core adjustments below

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

Note: TCF’s financial results for any periods ended prior to August 1, 2019 reflect Legacy TCF financial results only on a standalone basis. In addition, TCF’s reported financial results for the third quarter of 2019 reflect Legacy TCF financial results only for the month of July and the post-merger combined TCF financial results for August and September. As a result of these two factors, TCF’s financial results for the third quarter of 2019 may not be directly comparable to prior reported periods. The number of shares issued and outstanding, earnings per share, additional paid-in-capital and all references to share quantities of TCF have been retrospectively restated to reflect the equivalent number of shares issued in the Merger as the Merger was treated as a reverse merger.

Summary of Financial Results^(1)
	At or For the Quarter Ended															Change From
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Sep. 30,
(Dollars in thousands, except per share data)	2019			2019			2019			2018			2018			2019			2018
Financial Results
Net income attributable to TCF	$	22,148		$	90,427		$	70,494		$	85,652		$	86,196		(75.5	)	%	(74.3	)	%
Net interest income		371,793			254,057			254,429			253,153			253,502		46.3			46.7
Basic earnings per common share		0.15			1.07			0.83			1.00			1.00		(86.0	)		(85.0	)
Diluted earnings per common share		0.15			1.07			0.83			1.00			1.00		(86.0	)		(85.0	)
Return on average assets ("ROAA")^(3)		0.26	%		1.54	%		1.22	%		1.52	%		1.55	%	(128	)	bps	(129	)	bps
ROACE^(3)		1.75			14.27			11.40			14.30			14.44		(1,252	)		(1,269	)
ROATCE^(2)(3)		2.68			15.46			12.42			15.58			15.76		(1,278	)		(1,308	)
Net interest margin (FTE)^(3)		4.14			4.49			4.61			4.67			4.73		(35	)		(59	)
Net charge-offs as a percentage of average loans and leases^(3)		0.39			0.29			0.39			0.46			0.15		10			24
Nonperforming assets as a percentage of total loans and leases and other real estate owned		0.62			0.62			0.63			0.65			0.59		—			3
Efficiency ratio		91.32			65.11			70.70			66.30			67.41		2,621			2,391
Adjusted Financial Results (non-GAAP)
Adjusted net income attributable to TCF^(2)	$	128,301		$	93,650		$	77,700		$	85,652		$	86,196		37.0		%	48.8		%
Adjusted diluted earnings per common share^(2)		0.98			1.11			0.91			1.00			1.00		(11.7	)		(2.0	)
Adjusted ROAA^(2)(3)		1.34	%		1.59	%		1.34	%		1.52	%		1.55	%	(25	)	bps	(21	)	bps
Adjusted ROACE^(2)(3)		11.21			14.79			12.61			14.30			14.44		(358	)		(323	)
Adjusted ROATCE^(2)(3)		14.96			16.02			13.72			15.58			15.76		(106	)		(80	)
Adjusted efficiency ratio^(2)		58.74			61.48			65.67			63.89			64.91		(274	)		(617	)
(1) Financial results for any periods ended prior to August 1, 2019 reflect Legacy TCF financials on a standalone basis. Certain reclassifications have been made to prior period financial statements to conform to the current period presentation.
(2) Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.
(3) Annualized.

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

	For the quarter ended September 30, 2019
(Dollars in thousands, except per share data)	Pre-tax income (loss)		After-tax benefit (loss)^(1)		Per Share
Merger-related expenses	$	(111,259)	$	(82,862)	$	(0.64)
Non-core items:
Transfer of Legacy TCF auto finance portfolio to held-for-sale^(2)	(19,264)		(14,664)		(0.11)
Termination of interest rate swaps^(3)	(17,302)		(13,170)		(0.10)
Write-down of company-owned vacant land parcels^(4)	(5,890)		(4,483)		(0.04)
Sale of certain investment securities^(5)	5,869		4,467		0.03
Loan servicing rights impairment^(3)	(4,520)		(3,441)		(0.03)
Tax basis adjustment benefit^(6)	—		8,000		0.06
Total non-core items	$	(41,107)	$	(23,291)	$	(0.19)
Total merger-related and non-core items	$	(152,366)	$	(106,153)	$	(0.83)
(1) Net of tax benefit at TCF's normal tax rate and other tax benefits.
(2) Included within Net (loss) gain on sales of loans and leases.
(3) Included within Other noninterest income.
(4) Included within Other noninterest expense.
(5) Included within Net gains on investment securities.
(6) Included within Income tax (benefit) expense.

TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ: TCF) today reported net income of $22.1 million and diluted earnings per common share of 15 cents for the third quarter of 2019. Adjusted net income was $128.3 million, or 98 cents per diluted earnings per common share, for the third quarter of 2019, excluding merger-related expenses and non-core items of 83 cents per common share (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

"Following the closing of the merger of equals on August 1, we continue to make progress on integration initiatives and I am optimistic about the growth outlook of the organization as we establish our roadmaps for execution on business synergy opportunities," said Craig R. Dahl, president and chief executive officer. "Our integration program and activities remain on track, and we continue to be focused on achieving targeted cost savings, planning for systems conversions and leveraging our full-scale product offering across our broader consumer and commercial customer base throughout the Midwest. Our teams are collaborating across the organization to ensure we continue to build on the momentum that each bank brings to the table, for both continued organic growth and taking care of our customers. As we go to market as One TCF, we are well positioned to deliver shareholder value through improved efficiency and return on capital, while maintaining an exceptional customer experience."

Net Interest Income and Net Interest Margin

Net interest income was $371.8 million for the third quarter of 2019. Purchase accounting accretion and amortization included in net interest income was $28.4 million. Net interest income, excluding purchase accounting accretion and amortization, was $343.4 million. Net interest margin on a fully tax-equivalent basis (FTE) was 4.14% for the third quarter of 2019. Net interest margin FTE, excluding purchase accounting accretion and amortization, was 3.83% (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

Noninterest Income

Noninterest income was $94.3 million for the third quarter of 2019. Noninterest income included the following balance sheet repositioning actions considered to be non-core items: a $19.3 million loss related to the transfer of the Legacy TCF auto finance portfolio to held-for-sale, a $17.3 million loss related to the termination of interest rate swaps, and a gain of $5.9 million related to the sale of $1.6 billion of certain investment securities. Noninterest income additionally included $4.5 million of loan servicing rights impairment, also considered a non-core item. Adjusted noninterest income for the third quarter of 2019 was $129.5 million (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The third quarter of 2019 also included a $2.1 million unrealized loss related to interest rate swaps mark-to-market adjustments resulting from changes in the interest rate environment. Noninterest income, excluding the interest rate swap mark-to-market adjustment and non-core items discussed previously, was $131.6 million for the third quarter of 2019.

Noninterest Expense

Noninterest expense was $425.6 million for the third quarter of 2019 and included $111.3 million of merger-related expenses. Noninterest expense also included $5.9 million of expense, included within other noninterest expense, related to the write-down of company-owned vacant land parcels, considered a non-core item. Excluding merger-related expenses and the write-down of company-owned vacant land parcels, adjusted noninterest expense was $308.5 million (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

Income Tax (Benefit) Expense

Income tax benefit for the third quarter of 2019 was $11.7 million. The third quarter of 2019 included an $8.0 million tax basis adjustment benefit. The third quarter of 2019 also included a $5.7 million benefit provided by the repricing of TCF's net deferred tax position in conjunction with the completion of the merger and is reflected in the after-tax impact of merger-related expenses.

Credit Quality

Provision for credit losses Provision for credit losses was $27.2 million for the third quarter of 2019.

Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases was 0.39% for the third quarter of 2019.

Allowance for Loan and Lease Losses Allowance for loan and lease losses was $121.2 million, or 0.36% of total loans and leases, at September 30, 2019. Loans acquired in the Merger were recorded at their fair value as of the merger date without a carryover of the related allowance, and as of September 30, 2019, the determination was made that no allowance was needed for this population of loans. Allowance for loan and lease losses and the credit discount on acquired loans was $297.0 million, or 0.89% of total loans and leases at September 30, 2019.

Nonaccrual loans and leases Nonaccrual loans and leases were $181.8 million at September 30, 2019 and represented 0.54% of total loans and leases.

Balance Sheet

Loans and leases Loans and leases were $33.5 billion at September 30, 2019, compared to $19.2 billion at June 30, 2019. Loan and lease balances were impacted by the addition of Chemical's $15.7 billion loan and lease portfolio, partially offset by the transfer of the Legacy TCF auto finance portfolio to held-for-sale ($1.2 billion at September 30, 2019).

Investment securities The investment securities portfolio was $5.7 billion at September 30, 2019, compared to $3.3 billion at June 30, 2019. Portfolio balances were impacted by the addition of Chemical's $3.8 billion investment securities portfolio and the subsequent sale of $1.6 billion of these investment securities during the third quarter of 2019.

Deposits Deposits were $35.3 billion at September 30, 2019, compared to $19.1 billion at June 30, 2019. Deposit balances were impacted by the addition of $16.8 billion of Chemical deposits during the third quarter of 2019.

Capital The common equity Tier 1 capital ratio was 10.88% at September 30, 2019.

TCF's board of directors approved an authorization to repurchase up to $150 million of TCF common stock.

TCF's board of directors also declared a regular quarterly cash dividend of $0.35 per common share payable on December 2, 2019 to shareholders of record at the close of business on November 15, 2019. In addition, the board of directors declared a quarterly cash dividend of $0.35625 per depositary share payable on December 2, 2019 to shareholders of record of the depositary shares, representing a 1/1,000th interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock, at the close of business on November 15, 2019.

Conference Call Details TCF will host a conference call to discuss third quarter 2019 results on Tuesday, October 29, 2019 at 10:00 a.m. Eastern Daylight Time. The conference call will be available via a live webcast on the Investor Relations section of TCF's website, ir.tcfbank.com, and archived for replay. The conference call can also be accessed by dialing [phone] and entering access code 3865677. To listen to the replay via phone, please dial [phone] and enter access code 10135947. The replay begins approximately one hour after the call is completed on Tuesday, October 29, 2019 and will be available through Tuesday, November 5, 2019.

TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $46 billion in total assets and a top 10 deposit market share in the Midwest at September 30, 2019. 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 more than 500 branches primarily located in Michigan, Illinois and Minnesota with additional locations in Arizona, Colorado, Indiana, Ohio, South Dakota and Wisconsin. TCF also conducts business across all 50 states and Canada through its specialty lending and leasing businesses. To learn more about TCF, visit ir.tcfbank.com.

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

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

Certain factors could cause the Corporation's future results to differ materially from those expressed or implied in any forward-looking statements contained herein. These factors include the factors discussed in Part I, Item 1A. of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2018 under the heading "Risk Factors" and any other cautionary statements, written or oral, which may be made or referred to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

Use of Non-GAAP Financial Measures

Management uses the adjusted diluted earnings per common share, adjusted ROAA, adjusted ROACE, ROATCE, adjusted ROATCE, adjusted efficiency ratio, tangible book value per common share and tangible common equity to tangible assets 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 non-core items management believes it is 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.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition (Unaudited)
											Change From
(Dollars in thousands)	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30, 2019				Sep. 30, 2018
	2019		2019		2019		2018		2018		$		%		$		%
ASSETS:
Cash and cash equivalents:
Cash and due from banks	$	586,060	$	294,566	$	283,659	$	279,267	$	306,834	$	291,494	99.0	%	$	279,226	91.0	%
Interest-bearing deposits with other banks	736,954		260,705		180,163		307,790		263,134		476,249		182.7		473,820		180.1
Total cash and cash equivalents	1,323,014		555,271		463,822		587,057		569,968		767,743		138.3		753,046		132.1
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost	290,238		105,659		103,644		91,654		80,672		184,579		174.7		209,566		N.M.
Investment securities:
Carried at fair value	5,579,835		3,109,803		2,945,342		2,470,065		2,379,546		2,470,032		79.4		3,200,289		134.5
Held-to-maturity, at amortized cost	144,000		144,919		148,024		148,852		152,881		(919)		(0.6)		(8,881)		(5.8)
Total investment securities	5,723,835		3,254,722		3,093,366		2,618,917		2,532,427		2,469,113		75.9		3,191,408		126.0
Loans and leases held-for-sale	1,436,069		74,410		64,468		90,664		114,198		1,361,659		N.M.		1,321,871		N.M.
Loans and leases	33,510,752		19,185,137		19,384,210		19,073,020		18,422,088		14,325,615		74.7		15,088,664		81.9
Allowance for loan and lease losses	(121,218)		(146,503)		(147,972)		(157,446)		(160,621)		25,285		17.3		39,403		24.5
Loans and leases, net	33,389,534		19,038,634		19,236,238		18,915,574		18,261,467		14,350,900		75.4		15,128,067		82.8
Premises and equipment, net	554,194		432,751		429,711		427,534		429,648		121,443		28.1		124,546		29.0
Goodwill	1,265,111		154,757		154,757		154,757		154,757		1,110,354		N.M.		1,110,354		N.M.
Other intangible assets, net	215,910		18,885		19,684		20,496		21,339		197,025		N.M.		194,571		N.M.
Loan servicing rights	55,301		19		20		23		25		55,282		N.M.		55,276		N.M.
Other assets	1,439,305		991,722		853,005		792,936		740,284		447,583		45.1		699,021		94.4
Total assets	$	45,692,511	$	24,626,830	$	24,418,715	$	23,699,612	$	22,904,785	$	21,065,681	85.5		$	22,787,726	99.5
LIABILITIES AND EQUITY:
Deposits:
Noninterest-bearing	$	7,979,900	$	4,062,912	$	4,104,652	$	3,936,155	$	3,974,333	$	3,916,988	96.4	%	$	4,005,567	100.8	%
Interest-bearing	27,306,174		15,049,475		14,919,459		14,967,531		14,522,178		12,256,699		81.4		12,783,996		88.0
Total deposits	35,286,074		19,112,387		19,024,111		18,903,686		18,496,511		16,173,687		84.6		16,789,563		90.8
Short-term borrowings	2,607,300		350,764		355,992		—		2,324		2,256,536		N.M.		2,604,976		N.M.
Long-term borrowings	860,482		1,617,531		1,411,426		1,449,472		1,171,541		(757,049)		(46.8)		(311,059)		(26.6)
Other liabilities	1,245,238		835,630		981,341		790,194		706,397		409,608		49.0		538,841		76.3
Total liabilities	39,999,094		21,916,312		21,772,870		21,143,352		20,376,773		18,082,782		82.5		19,622,321		96.3
Equity:
Preferred stock	169,302		169,302		169,302		169,302		169,302		—		—		—		—
Common stock	153,571		87,944		88,063		88,198		88,201		65,627		74.6		65,370		74.1
Additional paid-in capital	3,478,159		781,788		789,467		798,627		795,856		2,696,371		N.M.		2,682,303		N.M.
Retained earnings	1,840,214		1,874,308		1,810,701		1,766,994		1,708,410		(34,094)		(1.8)		131,804		7.7
Accumulated other comprehensive income (loss)	56,228		37,334		5,481		(33,138)		(65,259)		18,894		50.6		121,487		N.M.
Treasury stock at cost and other	(27,370)		(265,016)		(246,621)		(252,182)		(189,652)		237,646		89.7		162,282		85.6
Total TCF Financial Corporation shareholders' equity	5,670,104		2,685,660		2,616,393		2,537,801		2,506,858		2,984,444		111.1		3,163,246		126.2
Non-controlling interest	23,313		24,858		29,452		18,459		21,154		(1,545)		(6.2)		2,159		10.2
Total equity	5,693,417		2,710,518		2,645,845		2,556,260		2,528,012		2,982,899		110.0		3,165,405		125.2
Total liabilities and equity	$	45,692,511	$	24,626,830	$	24,418,715	$	23,699,612	$	22,904,785	$	21,065,681	85.5		$	22,787,726	99.5
N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Quarter Ended										Change From
(Dollars in thousands)	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30, 2019				Sep. 30, 2018
	2019		2019		2019		2018		2018		$		%		$		%
Interest income:
Interest and fees on loans and leases	$	417,370	$	283,282	$	283,238	$	275,200	$	269,167	$	134,088	47.3	%	$	148,203	55.1	%
Interest on investment securities:											—		—		—		—
Taxable	31,038		22,041		16,666		13,915		11,498		8,997		40.8		19,540		169.9
Tax-exempt	3,385		1,208		2,684		4,147		4,328		2,177		180.2		(943)		(21.8)
Interest on loans held-for-sale	1,408		599		825		1,405		3,625		809		135.1		(2,217)		(61.2)
Interest on other earning assets	6,607		3,651		3,481		3,242		3,089		2,956		81.0		3,518		113.9
Total interest income	459,808		310,781		306,894		297,909		291,707		149,027		48.0		168,101		57.6
Interest expense:
Interest on deposits	70,900		40,646		37,608		33,462		27,479		30,254		74.4		43,421		158.0
Interest on borrowings	17,115		16,078		14,857		11,294		10,726		1,037		6.4		6,389		59.6
Total interest expense	88,015		56,724		52,465		44,756		38,205		31,291		55.2		49,810		130.4
Net interest income	371,793		254,057		254,429		253,153		253,502		117,736		46.3		118,291		46.7
Provision for credit losses	27,188		13,569		10,122		18,894		2,270		13,619		100.4		24,918		N.M.
Net interest income after provision for credit losses	344,605		240,488		244,307		234,259		251,232		104,117		43.3		93,373		37.2
Noninterest income:
Fees and service charges on deposit accounts	34,384		27,842		26,278		29,539		29,175		6,542		23.5		5,209		17.9
Leasing revenue	39,590		39,277		38,165		51,602		41,944		313		0.8		(2,354)		(5.6)
Wealth management revenue	4,241		—		—		—		—		4,241		N.M.		4,241		N.M.
Card and ATM revenue	23,315		20,496		18,659		20,093		20,074		2,819		13.8		3,241		16.1
Net (loss) gain on sales of loans and leases	(5,984)		11,141		8,217		8,795		8,502		(17,125)		N.M.		(14,486)		N.M.
Servicing fee revenue	5,121		4,523		5,110		5,523		6,032		598		13.2		(911)		(15.1)
Net gains on investment securities	5,900		1,066		451		167		94		4,834		N.M.		5,806		N.M.
Other	(12,309)		5,373		6,624		8,149		6,243		(17,682)		N.M.		(18,552)		N.M.
Total noninterest income	94,258		109,718		103,504		123,868		112,064		(15,460)		(14.1)		(17,806)		(15.9)
Noninterest expense:
Compensation and employee benefits	155,745		116,266		123,942		130,022		124,996		39,479		34.0		30,749		24.6
Occupancy and equipment	49,229		41,850		41,710		42,277		42,337		7,379		17.6		6,892		16.3
Lease financing equipment depreciation	19,408		19,133		19,256		19,085		19,525		275		1.4		(117)		(0.6)
Net foreclosed real estate and repossessed assets	2,203		2,448		4,630		4,396		3,880		(245)		(10.0)		(1,677)		(43.2)
Merger-related expenses	111,259		4,226		9,458		—		—		107,033		N.M.		111,259		N.M.
Other	87,776		52,926		54,079		54,178		55,685		34,850		65.8		32,091		57.6
Total noninterest expense	425,620		236,849		253,075		249,958		246,423		188,771		79.7		179,197		72.7
Income before income tax expense	13,243		113,357		94,736		108,169		116,873		(100,114)		(88.3)		(103,630)		(88.7)
Income tax (benefit) expense	(11,735)		19,314		21,287		20,013		28,034		(31,049)		N.M.		(39,769)		N.M.
Income after income tax expense	24,978		94,043		73,449		88,156		88,839		(69,065)		(73.4)		(63,861)		(71.9)
Income attributable to non-controlling interest	2,830		3,616		2,955		2,504		2,643		(786)		(21.7)		187		7.1
Net income attributable to TCF Financial Corporation	22,148		90,427		70,494		85,652		86,196		(68,279)		(75.5)		(64,048)		(74.3)
Preferred stock dividends	2,494		2,494		2,493		2,494		2,494		—		—		—		—
Net income available to common shareholders	$	19,654	$	87,933	$	68,001	$	83,158	$	83,702	$	(68,279)	(77.6)		$	(64,048)	(76.5)
N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Nine Months Ended September 30,				Change
(Dollars in thousands, except per share data)	2019		2018		$		%
Interest income:
Interest and fees on loans and leases	$	983,890	$	806,935	$	176,955	21.9	%
Interest on investment securities:
Taxable	69,745		27,491		42,254		153.7
Tax-exempt	7,277		12,991		(5,714)		(44.0)
Interest on loans held-for-sale	2,832		5,281		(2,449)		(46.4)
Interest on other earning assets	13,739		8,722		5,017		57.5
Total interest income	1,077,483		861,420		216,063		25.1
Interest expense:
Interest on deposits	149,154		74,228		74,926		100.9
Interest on borrowings	48,050		31,850		16,200		50.9
Total interest expense	197,204		106,078		91,126		85.9
Net interest income	880,279		755,342		124,937		16.5
Provision for credit losses	50,879		27,874		23,005		82.5
Net interest income after provision for credit losses	829,400		727,468		101,932		14.0
Noninterest income:
Fees and service charges on deposit accounts	88,504		83,703		4,801		5.7
Leasing revenue	117,032		121,001		(3,969)		(3.3)
Wealth management revenue	4,241		—		4,241		N.M.
Card and ATM revenue	62,470		58,313		4,157		7.1
Net gains on sales of loans and leases	13,374		24,900		(11,526)		(46.3)
Servicing fee revenue	14,754		21,811		(7,057)		(32.4)
Net gains (losses) on investment securities	7,417		181		7,236		N.M.
Other	(312)		20,620		(20,932)		N.M.
Total noninterest income	307,480		330,529		(23,049)		(7.0)
Noninterest expense:
Compensation and employee benefits	395,953		372,174		23,779		6.4
Occupancy and equipment	132,789		123,562		9,227		7.5
Lease financing equipment depreciation	57,797		54,744		3,053		5.6
Net foreclosed real estate and repossessed assets	9,281		12,654		(3,373)		(26.7)
Merger-related expenses	124,943		—		124,943		N.M.
Other	194,781		201,308		(6,527)		(3.2)
Total noninterest expense	915,544		764,442		151,102		19.8
Income before income tax expense	221,336		293,555		(72,219)		(24.6)
Income tax expense	28,866		66,083		(37,217)		(56.3)
Income after income tax expense	192,470		227,472		(35,002)		(15.4)
Income attributable to non-controlling interest	9,401		8,766		635		7.2
Net income attributable to TCF Financial Corporation	183,069		218,706		(35,637)		(16.3)
Preferred stock dividends	7,481		9,094		(1,613)		(17.7)
Impact of preferred stock redemption	—		3,481		(3,481)		(100.0)
Net income available to common shareholders	$	175,588	$	206,131	$	(30,543)	(14.8)
Earnings per common share:
Basic	$	1.79	$	2.44	$	(0.65)	(26.6)	%
Diluted	1.79		2.43		(0.64)		(26.3)
N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields and Rates (Unaudited)
	Three Months Ended
	September 30, 2019							June 30, 2019							September 30, 2018
	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	$	230,767	$	806		1.39	%	$	112,118	$	1,093		3.91	%	$	87,485	$	1,057		4.81	%
Investment securities held-to-maturity	143,078		602			1.68		146,296		924			2.53		153,652		988			2.57
Investment securities available-for-sale:
Taxable	4,232,878		30,436			2.88		2,711,984		21,117			3.11		1,525,665		10,511			2.76
Tax-exempt^(3)	643,576		4,283			2.66		222,534		1,530			2.75		823,854		5,478			2.66
Loans and leases held-for-sale	118,482		1,408			4.74		40,835		599			5.88		216,669		3,625			6.64
Loans and leases^(1)(3)(4)
Commercial and industrial	9,290,978		146,865			6.25		6,683,060		109,679			6.56		5,956,211		94,971			6.33
Commercial real estate	6,964,643		97,042			5.45		3,069,969		39,204			5.05		2,840,005		35,214			4.85
Lease financing	2,570,567		32,833			5.11		2,565,175		32,899			5.13		2,473,793		32,110			5.19
Residential mortgage	4,853,627		51,511			4.23		2,337,818		28,665			5.91		1,691,691		22,642			5.32
Consumer installment	2,389,830		34,543			5.73		1,586,633		22,262			3.64		2,449,414		34,439			5.58
Home equity	3,433,830		56,166			6.49		2,997,050		51,588			5.48		3,005,196		50,753			6.70
Total loans and leases^(1)(3)(4)	29,503,475		418,960			5.62		19,239,705		284,297			5.91		18,416,310		270,129			5.82
Interest-bearing deposits with banks and other	933,014		5,800			2.44		280,075		2,557			3.64		218,771		2,031			3.69
Total interest-earning assets	35,805,270		462,295			5.11		22,753,547		312,117			5.48		21,442,406		293,819			5.44
Other assets	3,289,096							1,730,275							1,461,998
Total assets	$	39,094,366						$	24,483,822						$	22,904,404
LIABILITIES AND EQUITY:
Noninterest bearing deposits	$	6,564,195						$	3,980,811						$	3,874,421
Interest-bearing deposits:
Checking	4,805,843		5,520			0.46	%	2,479,814		440			0.07	%	2,427,288		234			0.04	%
Savings	7,676,165		14,110			0.73		6,452,510		12,314			0.77		5,620,161		4,994			0.35
Money market	3,490,922		13,037			1.48		1,430,556		4,588			1.29		1,496,223		2,941			0.78
Certificates of deposit	7,320,720		38,233			2.07		4,527,822		23,304			2.06		4,868,286		19,310			1.57
Total interest-bearing deposits	23,293,650		70,900			1.21		14,890,702		40,646			1.09		14,411,958		27,479			0.76
Total deposits	29,857,845		70,900			0.94		18,871,513		40,646			0.86		18,286,379		27,479			0.60
Borrowings:
Short-term borrowings	1,884,228		5,345			1.11		321,043		2,131			2.63		3,357		21			2.44
Long-term borrowings	1,472,150		11,769			3.17		1,657,527		13,946			3.34		1,351,585		10,705			3.13
Total borrowings	3,356,378		17,114			2.01		1,978,570		16,077			3.23		1,354,942		10,726			3.13
Total interest-bearing liabilities	26,650,028		88,014			1.31		16,869,272		56,723			1.34		15,766,900		38,205			0.96
Total deposits and borrowings	33,214,223		88,014			1.05		20,850,083		56,723			1.09		19,641,321		38,205			0.77
Accrued expenses and other liabilities	1,197,014							969,723							751,100
Total liabilities	34,411,237							21,819,806							20,392,421
Total TCF Financial Corporation shareholders' equity	4,657,613							2,634,386							2,488,435
Non-controlling interest in subsidiaries	25,516							29,630							23,548
Total equity	4,683,129							2,664,016							2,511,983
Total liabilities and equity	$	39,094,366						$	24,483,822						$	22,904,404
Net interest spread (FTE)						4.06	%						4.39	%						4.67	%
Net interest income(FTE) and net interest margin(FTE)			$	374,281		4.14	%			$	255,394		4.49	%			$	255,614		4.73	%
Reconciliation to Reported Net Interest Income
Net interest income (FTE)			$	374,281						$	255,394						$	255,614
Adjustments for taxable equivalent interest^(1)(3)
Loans and leases			(1,590)							(1,015)							(962)
Tax-exempt investment securities			(898)							(322)							(1,150)
Total FTE adjustments			(2,488)							(1,337)							(2,112)
Net interest income (GAAP)			$	371,793						$	254,057						$	253,502
Net interest margin (GAAP)			4.12		%					4.48		%					4.69		%
(1) Interest and yields are presented on a fully tax-equivalent basis.
(2) Annualized
(3) The yield on tax-exempt loans, leases 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 non-accrual loans and leases and are presented net of unearned income.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields and Rates (Unaudited)
	Nine Months Ended September 30,
	2019							2018
	Average					Yields and		Average					Yields and
(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	$	149,801	$	2,860		2.55	%	$	90,600	$	2,698		3.98	%
Investment securities held-to-maturity	145,627		2,061			1.89		156,170		3,005			2.57
Investment securities available-for-sale:
Taxable	3,029,754		67,684			2.98		1,258,708		24,487			2.59
Tax-exempt^(3)	461,499		9,210			2.66		824,551		16,444			2.66
Loans and leases held-for-sale	71,739		2,832			5.27		108,992		5,281			6.48
Loans and leases^(1)(3)(4)
Commercial and industrial	7,499,975		363,260			6.45		6,189,854		288,522			6.21
Commercial real estate	4,332,238		173,983			5.30		2,800,912		99,940			4.71
Lease financing	2,554,521		98,116			5.12		2,453,344		92,201			5.01
Residential mortgage	3,188,294		109,634			4.59		1,731,913		69,424			5.36
Consumer installment	1,945,059		82,305			5.66		2,729,135		112,454			5.51
Home equity	3,161,083		160,206			6.78		3,013,433		147,210			6.53
Total loans and leases^(1)(3)(4)	22,681,170		987,504			5.80		18,918,591		809,751			5.71
Interest-bearing deposits with banks and other	494,007		10,878			2.92		225,203		6,023			3.58
Total interest-earning assets	27,033,597		1,083,029			5.33		21,582,815		867,689			5.36
Other assets	2,249,678							1,448,293
Total assets	$	29,283,275						$	23,031,108
LIABILITIES AND EQUITY:
Noninterest bearing deposits	$	4,831,271						$	3,833,543
Interest-bearing deposits:
Checking	3,256,409		6,347			0.26	%	2,449,723		466			0.03	%
Savings	6,799,432		37,094			0.73		5,520,287		11,895			0.29
Money market	2,144,697		22,078			1.38		1,588,210		7,970			0.67
Certificates of deposit	5,500,105		83,635			2.03		4,924,804		53,897			1.46
Total interest-bearing deposits	17,700,643		149,154			1.13		14,483,024		74,228			0.69
Total deposits	22,531,914		149,154			0.88		18,316,567		74,228			0.54
Borrowings:
Short-term borrowings	838,750		9,433			1.48		3,473		58			2.23
Long-term borrowings	1,543,398		38,616			3.32		1,435,088		31,792			2.94
Total borrowings	2,382,148		48,049			2.67		1,438,561		31,850			2.93
Total interest-bearing liabilities	20,082,791		197,203			1.31		15,921,585		106,078			0.89
Total deposits and borrowings	24,914,062		197,203			1.06		19,755,128		106,078			0.72
Accrued expenses and other liabilities	1,052,709							741,222
Total liabilities	25,966,771							20,496,350
Total TCF Financial Corporation shareholders' equity	3,289,946							2,509,625
Non-controlling interest in subsidiaries	26,558							25,133
Total equity	3,316,504							2,534,758
Total liabilities and equity	$	29,283,275						$	23,031,108
Net interest spread (FTE)						4.27							4.64
Net interest income (FTE) and net interest margin (FTE)			$	885,826		4.36				$	761,611		4.70
Reconciliation to Reported Net Interest Income
Net interest income (FTE)			$	885,826						$	761,611
Adjustments for taxable equivalent interest^(1)(3)
Loans			(3,614)							(2,816)
Tax-exempt investment securities			(1,933)							(3,453)
Total FTE adjustments			(5,547)							(6,269)
Net interest income (GAAP)			$	880,279						$	755,342
Net interest margin (GAAP)			4.35		%					4.68		%
(1) Interest and yields are presented on a fully tax-equivalent basis.
(2) Annualized
(3) The yield on tax-exempt debt 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 non-accrual loans and leases and are presented net of unearned income.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Quarterly Average Balance Sheets (Unaudited)
	Quarter Ended										Change From
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30, 2019				Sep. 30, 2018
(Dollars in thousands)	2019		2019		2019		2018		2018		$		%		$		%
ASSETS:
Federal Home Loan Bank and Federal Reserve Bank stocks	$	230,767	$	112,118	$	105,135	$	87,321	$	87,485	$	118,649	105.8	%	$	143,282	163.8	%
Investment securities held-to-maturity	143,078		146,296		147,556		150,016		153,652		(3,218)		(2.2)		(10,574)		(6.9)
Investment securities available-for-sale:
Taxable	4,232,878		2,711,984		2,121,196		1,779,654		1,525,665		1,520,894		56.1		2,707,213		177.4
Tax-exempt	643,576		222,534		516,995		788,806		823,854		421,042		189.2		(180,278)		(21.9)
Loans and leases held-for-sale	118,482		40,835		55,204		86,169		216,669		77,647		190.1		(98,187)		(45.3)
Loans and leases^(1):
Commercial and industrial	9,290,978		6,683,060		6,495,163		6,116,369		5,956,211		2,607,918		39.0		3,334,767		56.0
Commercial real estate	6,964,643		3,069,969		2,917,631		2,795,403		2,840,005		3,894,674		126.9		4,124,638		145.2
Lease financing	2,570,567		2,565,175		2,527,346		2,479,045		2,473,793		5,392		0.2		96,774		3.9
Residential mortgage	4,853,627		2,337,818		2,345,881		1,957,323		1,691,691		2,515,809		107.6		3,161,936		186.9
Consumer installment	2,389,830		1,586,633		1,852,813		2,134,568		2,449,414		803,197		50.6		(59,584)		(2.4)
Home equity	3,433,830		2,997,050		3,048,128		3,072,697		3,005,196		436,780		14.6		428,634		14.3
Total loans and leases^(1)	29,503,475		19,239,705		19,186,962		18,555,405		18,416,310		10,263,770		53.3		11,087,165		60.2
Interest-bearing deposits with banks and other	933,014		280,075		261,556		243,038		218,771		652,939		N.M.		714,243		N.M.
Total interest-earning assets	35,805,270		22,753,547		22,394,604		21,690,409		21,442,406		13,051,723		57.4		14,362,864		67.0
Other assets	3,289,096		1,730,275		1,712,337		1,463,844		1,461,998		1,558,821		90.1		1,827,098		125.0
Total assets	$	39,094,366	$	24,483,822	$	24,106,941	$	23,154,253	$	22,904,404	$	14,610,544	59.7		$	16,189,962	70.7
LIABILITIES AND EQUITY:
Noninterest bearing deposits	$	6,564,195	$	3,980,811	$	3,919,746	$	3,873,023	$	3,874,421	$	2,583,384	64.9	%	$	2,689,774	69.4	%
Interest-bearing deposits:
Checking	4,805,843		2,479,814		2,457,767		2,403,370		2,427,288		2,326,029		93.8		2,378,555		98.0
Savings	7,676,165		6,452,510		6,253,992		5,922,724		5,620,161		1,223,655		19.0		2,056,004		36.6
Money market	3,490,922		1,430,556		1,490,631		1,449,531		1,496,223		2,060,366		144.0		1,994,699		133.3
Certificates of deposit	7,320,720		4,527,822		4,622,120		4,818,211		4,868,286		2,792,898		61.7		2,452,434		50.4
Total interest-bearing deposits	23,293,650		14,890,702		14,824,510		14,593,836		14,411,958		8,402,948		56.4		8,881,692		61.6
Total deposits	29,857,845		18,871,513		18,744,256		18,466,859		18,286,379		10,986,332		58.2		11,571,466		63.3
Borrowings:
Short-term borrowings	1,884,228		321,043		293,499		2,738		3,357		1,563,185		N.M.		1,880,871		N.M.
Long-term borrowings	1,472,150		1,657,527		1,500,832		1,344,228		1,351,585		(185,377)		(11.2)		120,565		8.9
Total borrowings	3,356,378		1,978,570		1,794,331		1,346,966		1,354,942		1,377,808		69.6		2,001,436		147.7
Total interest-bearing liabilities	26,650,028		16,869,272		16,618,841		15,940,802		15,766,900		9,780,756		58.0		10,883,128		69.0
Total deposits and borrowings	33,214,223		20,850,083		20,538,587		19,813,825		19,641,321		12,364,140		59.3		13,572,902		69.1
Accrued expenses and other liabilities	1,197,014		969,723		989,104		822,558		751,100		227,291		23.4		445,914		59.4
Total liabilities	34,411,237		21,819,806		21,527,691		20,636,383		20,392,421		12,591,431		57.7		14,018,816		68.7
Total TCF Financial Corporation shareholders' equity	4,657,613		2,634,386		2,554,729		2,495,952		2,488,435		2,023,227		76.8		2,169,178		87.2
Non-controlling interest in subsidiaries	25,516		29,630		24,521		21,918		23,548		(4,114)		(13.9)		1,968		8.4
Total equity	4,683,129		2,664,016		2,579,250		2,517,870		2,511,983		2,019,113		75.8		2,171,146		86.4
Total liabilities and equity	$	39,094,366	$	24,483,822	$	24,106,941	$	23,154,253	$	22,904,404	$	14,610,544	59.7		$	16,189,962	70.7
N.M. Not Meaningful
(1) Average balances of loans and leases include non-accrual loans and leases and are presented net of unearned income.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Quarterly Yields and Rates^(1)(2) (Unaudited)
	Quarter Ended										Change From
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Sep. 30,
	2019		2019		2019		2018		2018		2019		2018
ASSETS:
Federal Home Loan Bank and Federal Reserve Bank stocks	1.39	%	3.91	%	3.70	%	4.19	%	4.81	%	(252)	bps	(342)	bps
Investment securities held-to-maturity	1.68		2.53		1.45		2.58		2.57		(85)		(89)
Investment securities available-for-sale:
Taxable	2.88		3.11		3.04		2.91		2.76		(23)		12
Tax-exempt^(3)	2.66		2.75		2.63		2.66		2.66		(9)		—
Loans and leases held-for-sale	4.74		5.88		6.05		6.48		6.64		(114)		(190)
Loans and leases^(1)(3):
Commercial and industrial	6.25		6.56		6.63		6.36		6.33		(31)		(8)
Commercial real estate	5.45		5.05		5.17		5.02		4.85		40		60
Lease financing	5.11		5.13		5.13		5.32		5.19		(2)		(8)
Residential mortgage	4.23		5.91		5.97		5.27		5.32		(168)		(109)
Consumer installment	5.73		3.64		3.87		5.62		5.58		209		15
Home equity	6.49		5.48		5.55		6.86		6.70		101		(21)
Total loans and leases^(1)	5.62		5.91		5.97		5.90		5.82		(29)		(20)
Interest-bearing deposits with banks and other	2.44		3.64		3.87		3.79		3.69		(120)		(125)
Total interest-earning assets	5.11		5.48		5.55		5.49		5.44		(37)		(33)
LIABILITIES:
Interest-bearing deposits:
Checking	0.46		0.07		0.06		0.04		0.04		39		42
Savings	0.73		0.77		0.69		0.54		0.35		(4)		38
Money market	1.48		1.29		1.21		0.99		0.78		19		70
Certificates of deposit	2.07		2.06		1.94		1.77		1.57		1		50
Total interest-bearing deposits	1.21		1.09		1.03		0.91		0.76		12		45
Total deposits	0.94		0.86		0.81		0.72		0.60		8		34
Borrowings:
Short-term borrowings	1.11		2.63		2.67		2.74		2.44		(152)		(133)
Long-term borrowings	3.17		3.34		3.44		3.31		3.13		(17)		4
Total borrowings	2.01		3.23		3.31		3.31		3.13		(122)		(112)
Total interest-bearing liabilities	1.31		1.34		1.28		1.11		0.96		(3)		35
Net interest margin (FTE)	4.14		4.49		4.61		4.67		4.73		(35)		(59)
(1) Annualized
(2) Yields are presented on a fully tax-equivalent basis.
(3) The yield on tax-exempt debt 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
Summary of Loans (Unaudited)
Composition of Loans
	Quarter Ended										Change From
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Sep. 30,
(Dollars in thousands)	2019		2019		2019		2018		2018		2019		2018
Commercial and industrial	$	10,810,534	$	6,572,393	$	6,790,956	$	6,220,632	$	5,995,118	$	4,238,141	$	4,815,416
Commercial real estate	8,876,779		3,262,487		2,965,796		2,908,313		2,773,761		5,614,292		6,103,018
Lease financing	2,594,373		2,582,613		2,551,344		2,530,163		2,455,511		11,760		138,862
Residential mortgage	6,057,404		2,368,411		2,376,878		2,335,835		1,847,130		3,688,993		4,210,274
Consumer installment	1,562,252		1,474,480		1,722,557		2,003,572		2,296,241		87,772		(733,989)
Home equity	3,609,410		2,924,753		2,976,679		3,074,505		3,054,327		684,657		555,083
Total	$	33,510,752	$	19,185,137	$	19,384,210	$	19,073,020	$	18,422,088	$	14,325,615	$	15,088,664

Composition of Deposits
	Quarter Ended										Change From
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Sep. 30,
(Dollars in thousands)	2019		2019		2019		2018		2018		2019		2018
Noninterest-bearing deposits	$	7,979,900	$	4,062,912	$	4,104,652	$	3,936,155	$	3,974,333	$	3,916,988	$	4,005,567
Interest-bearing deposits:
Checking	6,266,740		2,498,042		2,532,688		2,459,617		2,420,896		3,768,698		3,845,844
Savings	8,347,541		6,503,102		6,426,465		6,107,812		5,724,582		1,844,439		2,622,959
Money market	4,305,921		1,443,004		1,468,308		1,609,422		1,504,952		2,862,917		2,800,969
Certificates of deposit	8,385,972		4,605,327		4,491,998		4,790,680		4,871,748		3,780,645		3,514,224
Total interest-bearing deposits	27,306,174		15,049,475		14,919,459		14,967,531		14,522,178		12,256,699		12,783,996
Total deposits	$	35,286,074	$	19,112,387	$	19,024,111	$	18,903,686	$	18,496,511	$	16,173,687	$	16,789,563

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Summary of Credit Quality Data (Unaudited)
Allowance for Loan and Lease Losses
	Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,
	2019				2019				2019				2018				2018
			% of				% of				% of				% of				% of
(Dollars in thousands)	Balance		Portfolio		Balance		Portfolio		Balance		Portfolio		Balance		Portfolio		Balance		Portfolio
Commercial and industrial	$	39,974	0.37	%	$	38,605	0.59	%	$	38,639	0.57	%	$	41,103	0.66	%	$	40,211	0.67	%
Commercial real estate	24,090		0.27		22,747		0.70		20,659		0.70		22,877		0.79		22,119		0.80
Lease financing	14,367		0.55		14,440		0.56		14,377		0.56		13,449		0.53		12,427		0.51
Residential mortgage	19,816		0.33		21,102		0.89		20,281		0.85		21,436		0.92		22,312		1.21
Consumer installment	1,859		0.12		26,731		1.81		30,477		1.77		35,151		1.75		40,606		1.77
Home equity	21,112		0.58		22,878		0.78		23,539		0.79		23,430		0.76		22,946		0.75
Total	$	121,218	0.36	%	$	146,503	0.76	%	$	147,972	0.76	%	$	157,446	0.83	%	$	160,621	0.87	%
Credit discount on acquired loans	175,759
Total allowance and discount on acquired loans	$	296,977	0.89	%

Changes in Allowance for Loan and Lease Losses
	Quarter Ended										Change From
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Sep. 30,
(In thousands)	2019		2019		2019		2018		2018		2019		2018
Balance, beginning of period	$	146,503	$	147,972	$	157,446	$	160,621	$	165,619	$	(1,469)	$	(19,116)
Charge-offs	(35,547)		(21,066)		(24,431)		(27,227)		(19,448)		(14,481)		(16,099)
Recoveries	6,969		6,984		5,777		5,913		12,658		(15)		(5,689)
Net (charge-offs) recoveries	(28,578)		(14,082)		(18,654)		(21,314)		(6,790)		(14,496)		(21,788)
Provision for credit losses	27,188		13,569		10,122		18,894		2,270		13,619		24,918
Other^(1)	(23,895)		(956)		(942)		(755)		(478)		(22,939)		(23,417)
Balance, end of period	$	121,218	$	146,503	$	147,972	$	157,446	$	160,621	$	(25,285)	$	(39,403)
(1) Primarily includes the transfer of the allowance for loan and lease losses to loans and leases held for sale.

Net Charge-offs
	Quarter Ended
	Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,
	2019				2019				2019				2018				2018
(Dollars in thousands)	Balance		Rate^(1)		Balance		Rate^(1)		Balance		Rate^(1)		Balance		Rate^(1)		Balance		Rate^(1)
Commercial and industrial	$	(17,631)	0.76	%	$	(5,820)	0.35	%	$	(5,259)	0.32	%	$	(9,678)	0.63	%	$	(2,081)	0.14	%
Commercial real estate	13		—		9		—		5		—		150		(0.02)		19		—
Lease financing	(2,192)		0.34		(966)		0.15		(1,391)		0.22		(574)		0.09		(497)		0.08
Residential mortgage	(189)		0.02		(80)		0.01		(468)		0.08		(109)		0.02		3390		(0.80)
Consumer installment	(8,984)		1.50		(6,990)		1.76		(11,561)		2.50		(11,299)		2.12		(10,662)		1.74
Home equity	405		(0.05)		(235)		0.03		20		—		196		(0.03)		3041		(0.40)
Total	$	(28,578)	0.39	%	$	(14,082)	0.29	%	$	(18,654)	0.39	%	$	(21,314)	0.46	%	$	(6,790)	0.15	%
(1) Annualized net charge-off rate based on average loans and leases

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Summary of Credit Quality Data (Unaudited), Continued
Over 90-Day Delinquencies as a Percentage of Portfolio^(1)
											Change From
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Sep. 30,
	2019		2019		2019		2018		2018		2019		2018
Commercial and industrial	0.02	%	—	%	—	%	0.01	%	—	%	2	bps	2	bps
Commercial real estate	0.09		—		—		—		—		9		9
Lease financing	0.09		0.12		0.10		0.07		0.07		(3)		2
Residential mortgage	0.01		0.05		0.07		0.06		0.04		(4)		(3)
Consumer installment	—		0.14		0.14		0.17		0.13		(14)		(13)
Home equity	—		—		—		—		—		—		—
Subtotal	0.04		0.03		0.04		0.04		0.03		1		1
Portfolios acquired with deteriorated credit quality	5.47		18.92		6.75		4.65		16.70		(1,345)		(1,123)
Total delinquencies	0.09		0.04		0.04		0.04		0.03		5		6
(1) Excludes non-accrual loans and leases

Nonperforming Assets
																Change From
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Sep. 30,
(Dollars in thousands)	2019			2019			2019			2018			2018			2019			2018
Nonaccrual loans and leases:
Commercial and industrial	$	55,039		$	18,483		$	17,150		$	26,061		$	15,073		$	36,556		$	39,966
Commercial real estate	26,518			545			607			4,518			5,210			25,973			21,308
Lease financing	11,503			12,886			10,976			7,993			7,306			(1,383)			4,197
Residential mortgage	48,816			34,760			35,227			33,111			33,136			14,056			15,680
Consumer installment	636			8,633			9,034			8,581			7,614			(7,997)			(6,978)
Home equity	39,296			32,686			30,291			25,654			21,957			6,610			17,339
Total nonaccrual loans and leases	181,808			107,993			103,285			105,918			90,296			73,815			91,512
Other real estate owned	27,638			11,964			18,361			17,403			19,079			15,674			8,559
Total nonperforming assets	$	209,446		$	119,957		$	121,646		$	123,321		$	109,375		$	89,489		$	100,071
Nonaccrual loans and leases as a percentage of total loans and leases	0.54		%	0.56		%	0.53		%	0.56		%	0.49		%	(2)		bps	5		bps
Allowance for loan and lease losses as a percentage of total loans and leases	66.67			135.66			143.27			148.65			177.88			(6,899)			(11,121)
Nonperforming assets as a percentage of total loans and leases and other real estate owned	0.62			0.62			0.63			0.65			0.59			—			3

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Capital Information (Unaudited)
	At or For the Quarter Ended															Change From
(Dollars in thousands, except per share data)	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Sep. 30,
	2019			2019			2019			2018			2018			2019			2018
Dividends declared per common share	$	0.35		$	0.15		$	0.15		$	0.15		$	0.15		133.3		%	133.3		%
Book value per common share		35.82			30.43		$	29.38		$	28.44		$	27.58		17.7			29.9
Tangible book value per common share^(1)		26.18			28.33			27.28			26.33			25.50		(7.6	)		2.7
Common equity to assets		12.04	%		10.22	%		10.02	%		9.99	%		10.21	%	182		bps	183		bps
Tangible common equity to tangible assets^(1)		9.09			9.58			9.37			9.32			9.51		(49	)		(42	)
Regulatory Capital:^(2)
Common equity Tier 1 capital	$	4,009,214		$	2,305,706		$	2,266,244		$	2,224,183		$	2,226,820		73.9		%	80.0		%
Tier 1 capital		4,197,706			2,495,178			2,459,132			2,408,393			2,412,869		68.2			74.0
Total capital		4,652,708			2,811,347			2,792,419			2,750,581			2,754,615		65.5			68.9
Common equity Tier 1 capital ratio		10.88	%		10.99	%		10.79	%		10.82	%		11.04	%	(11	)	bps	(16	)	bps
Tier 1 risk-based capital ratio		11.40			11.90			11.71			11.72			11.96		(50	)		(56	)
Total risk-based capital ratio		12.63			13.41			13.30			13.38			13.66		(78	)		(103	)
Tier 1 leverage ratio		11.16			10.27			10.26			10.44			10.58		89			58
(1) See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables
(2) September 30, 2019 amounts are preliminary pending completion and filing of the Company's regulatory reports

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
Computation of adjusted diluted earnings per common share:
		Quarter Ended
		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,
(Dollars in thousands, except per share data)		2019		2019		2019		2018		2018
Net income available to common shareholders		$	19,654	$	87,933	$	68,001	$	83,158	$	83,702
Less: Earnings allocated to participating securities		—		17		13		12		13
Earnings allocated to common stock	(a)	19,654		87,916		67,988		83,146		83,689
Plus: Merger-related expenses		111,259		4,226		9,458		—		—
Non-core items:
Plus: Loss on transfer of legacy TCF auto finance portfolio to held-for-sale^(1)		19,264		—		—		—		—
Plus: Termination of interest rate swaps^(2)		17,302		—		—		—		—
Less: Gain on sale of certain investment securities^(3)		(5,869)		—		—		—		—
Plus: Write-down of company-owned vacant land parcels^(4)		5,890		—		—		—		—
Plus: Loan servicing rights impairment^(2)		4,520		—		—		—		—
Total non-core items		41,107		—		—		—		—
Less: Related income tax expense, net of benefits^(5)		46,213		1,003		2,252		—		—
Total adjustments, net of tax		106,153		3,223		7,206		—		—
Adjusted earnings allocated to common stock	(b)	$	125,807	$	91,139	$	75,194	$	83,146	$	83,689
Weighted-average common shares outstanding used in diluted earnings per common share calculation^(6)	(c)	128,754,588		82,298,920		82,245,577		82,989,508		83,808,063
Diluted earnings per common share	(a) / (c)	$	0.15	$	1.07	$	0.83	$	1.00	$	1.00
Adjusted diluted earnings per common share	(b) / (c)	0.98		1.11		0.91		1.00		1.00
Net income attributable to TCF		$	22,148	$	90,427	$	70,494	$	85,652	$	86,196
Total adjustments, net of tax		106,153		3,223		7,206		—		—
Adjusted net income attributable to TCF		$	128,301	$	93,650	$	77,700	$	85,652	$	86,196
(1) Included within Net (loss) gain on sales of loans and leases.
(2) Included within Other noninterest income.
(3) Included within Net gains (losses) on investment securities.
(4) Included within Other noninterest expense.
(5) Included within Income tax (benefit) expense.
(6) Assumes conversion of common shares, as applicable.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
Computation of adjusted net interest income and margin:
	Quarter Ended
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(Dollars in thousands, except per share data)	2019			2019			2019			2018			2018
Net Interest Income	$	371,793		$	254,057		$	254,429		$	253,153		$	253,502
Purchase accounting accretion and amortization		28411			—			—			—			—
Net interest income, excluding purchase accounting accretion and amortization	$	343,382		$	254,057		$	254,429		$	253,153		$	253,502
Net interest margin (FTE)		4.14	%		4.49	%		4.61	%		4.67	%		4.73	%
Purchase accounting accretion and amortization		0.31			—			—			—			—
Net interest margin, excluding purchase accounting accretion and amortization (FTE)		3.83	%		4.49	%		4.61	%		4.67	%		4.73	%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued
Computation of adjusted return on average assets, common equity, average tangible common equity and average tangible common equity:
		Quarter Ended
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(Dollars in thousands)		2019			2019			2019				2018		2018
Adjusted net income after tax expense:
Income after tax expense	(a)	$	24,978		$	94,043		$	73,449		$	88,156		$	88,839
Plus: Merger-related expenses			111,259			4,226			9,458		—			—
Plus: Non-core items			41,107		—			—			—			—
Less: Related income tax expense, net of tax benefits			46,213			1,003			2,252		—			—
Adjusted net income after tax expense for ROAA calculation	(b)	$	131,131		$	97,266		$	80,655		$	88,156		$	88,839
Net income available to common shareholders	(c)	$	19,654		$	87,933		$	68,001		$	83,158		$	83,702
Plus: Other intangibles amortization			4,544			798			812			845			911
Less: Related income tax expense			1,085			189			193			198			220
Net income available to common shareholders used in ROATCE calculation	(d)	$	23,113		$	88,542		$	68,620		$	83,805		$	84,393
Adjusted net income available to common shareholders:
Net income available to common shareholders		$	19,654		$	87,933		$	68,001		$	83,158		$	83,702
Plus: Non-core items			41,107		—			—			—			—
Plus: Merger-related expenses			111,259			4,226			9,458		—			—
Less: Related income tax expense, net of tax benefits			46,213			1,003			2,252		—			—
Net income available to common shareholders used in adjusted ROACE calculation	(e)		125,807			91,156			75,207			83,158			83,702
Plus: Other intangibles amortization			4,544			798			812			845			911
Less: Related income tax expense			1,085			189			193			198			220
Net income available to common shareholders used in adjusted ROATCE calculation	(f)	$	129,266		$	91,765		$	75,826		$	83,805		$	84,393
Average balances:
Average assets	(g)	$	39,094,366		$	24,483,822		$	24,106,941		$	23,154,253		$	22,904,404
Total equity		$	4,683,129		$	2,664,016		$	2,579,250		$	2,517,870		$	2,511,983
Less: Non-controlling interest in subsidiaries			25,516			29,630			24,521			21,918			23,548
Total TCF Financial Corporation shareholders' equity			4,657,613			2,634,386			2,554,729			2,495,952			2,488,435
Less: Preferred stock			169,302			169,302			169,302			169,302			169,302
Average total common shareholders' equity used in ROACE calculation	(h)		4,488,311			2,465,084			2,385,427			2,326,650			2,319,133
Less: Goodwill, net			890,155			154,757			154,757			154,757			154,757
Less: Other intangibles, net			142,925			19,270			20,080			20,907			21,772
Average tangible common shareholders' equity used in ROATCE calculation	(i)	$	3,455,231		$	2,291,057		$	2,210,590		$	2,150,986		$	2,142,604
ROAA^(1)	(a) / (g)		0.26	%		1.54	%		1.22	%		1.52	%		1.55	%
Adjusted ROAA^(1)	(b) / (g)		1.34			1.59			1.34			1.52			1.55
ROACE^(1)	(c) / (h)		1.75			14.27			11.40			14.30			14.44
Adjusted ROACE^(1)	(e) / (h)		11.21			14.79			12.61			14.30			14.44
ROATCE^(1)	(d) / (i)		2.68			15.46			12.42			15.58			15.76
Adjusted ROATCE^(1)	(f) / (i)		14.96			16.02			13.72			15.58			15.76
(1) Annualized

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued
Computation of adjusted efficiency ratio, noninterest income and noninterest expense:
		Quarter Ended
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(Dollars in thousands)		2019			2019			2019			2018			2018
Noninterest expense	(a)	$	425,620		$	236,849		$	253,075		$	249,958		$	246,423
Less: Merger-related expenses			111,259			4,226			9,458		—			—
Less: Write-down of company-owned vacant land parcels			5,890			—			—		—			—
Adjusted noninterest expense		$	308,471		$	232,623		$	243,617		$	249,958		$	246,423
Less: Lease financing equipment depreciation			19,408			19,133			19,256			19,085			19,525
Less: Amortization of intangibles			4,544			798			812			845			911
Adjusted noninterest expense, efficiency ratio	(b)	$	284,519		$	212,692		$	223,549		$	230,028		$	225,987
Net interest income		$	371,793		$	254,057		$	254,429		$	253,153		$	253,502
Noninterest income			94,258			109,718			103,504			123,868			112,064
Total revenue	(c)	$	466,051		$	363,775		$	357,933		$	377,021		$	365,566
Noninterest income		$	94,258		$	109,718		$	103,504		$	123,868		$	112,064
Plus: Loss on transfer of legacy TCF auto loans to held-for-sale			19,264		—			—			—			—
Less: Termination of interest rate swaps			17,302		—			—			—			—
Less: Gain on sales of certain investment securities			(5,869	)	—			—			—			—
Plus: Loan servicing rights impairment			4,520		—			—			—			—
Adjusted noninterest income		$	129,475		$	109,718		$	103,504		$	123,868		$	112,064
Net interest income		$	371,793		$	254,057		$	254,429		$	253,153		$	253,502
Plus: Net interest income FTE adjustment			2,488			1,337			1,722			2,100			2,112
Adjusted net interest income		$	374,281		$	255,394		$	256,151		$	255,253		$	255,614
Less: Lease financing equipment depreciation			19,408			19,133			19,256			19,085			19,525
Adjusted total revenue, efficiency ratio	(d)	$	484,348		$	345,979		$	340,399		$	360,036		$	348,153
Efficiency ratio	(a) / (c)		91.32	%		65.11	%		70.70	%		66.30	%		67.41	%
Adjusted efficiency ratio	(b) / (d)		58.74			61.48			65.67			63.89			64.91

Computation of tangible common equity to tangible assets and tangible book value per common share:
		Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
(Dollars in thousands, except per share data)		2019			2019			2019			2018			2018
Total equity		$	5,693,417		$	2,710,518		$	2,645,845		$	2,556,260		$	2,528,012
Less: Non-controlling interest in subsidiaries			23,313			24,858			29,452			18,459			21,154
Total TCF Financial Corporation shareholders' equity			5,670,104			2,685,660			2,616,393			2,537,801			2,506,858
Less: Preferred stock			169,302			169,302			169,302			169,302			169,302
Total common stockholders' equity	(a)		5,500,802			2,516,358			2,447,091			2,368,499			2,337,556
Less: Goodwill, net			1,265,111			154,757			154,757			154,757			154,757
Less: Other intangibles, net			215,910			18,885			19,684			20,496			21,339
Tangible common shareholders' equity	(b)	$	4,019,781		$	2,342,716		$	2,272,650		$	2,193,246		$	2,161,460
Total assets	(c)	$	45,692,511		$	24,626,830		$	24,418,715		$	23,699,612		$	22,904,785
Less: Goodwill, net			1,265,111			154,757			154,757			154,757			154,757
Less: Other intangibles, net			215,910			18,885			19,684			20,496			21,339
Tangible assets	(d)	$	44,211,490		$	24,453,188		$	24,244,274		$	23,524,359		$	22,728,689
Common stock shares outstanding	(e)		153,571,381			82,703,469			83,303,581			83,289,382			84,757,434
Common equity to assets	(a) / (c)		12.04	%		10.22	%		10.02	%		9.99	%		10.21	%
Tangible common equity to tangible assets	(b) / (d)		9.09			9.58			9.37			9.32			9.51
Book value per common share	(a) / (e)	$	35.82		$	30.43		$	29.38		$	28.44		$	27.58
Tangible book value per common share	(b) / (e)		26.18			28.33			27.28			26.33			25.50

Source: TCF Financial Corporation

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