TCF Reports Third Quarter 2020 Results

TCF Financial Corporation (NASDAQ: TCF):

Third Quarter 2020 Highlights

• Quarterly net income of $55.7 million, or $0.35 per diluted share, up 134.5% from the second quarter of 2020
• Adjusted diluted earnings per common share of $0.63⁽¹⁾, up 16.7% from the second quarter of 2020. Adjusted diluted earnings per common share excludes $43.0 million, or $0.28 per share, after-tax impact of merger-related expenses and notable items
• Successful on-time completion of merger-of-equals integration activities
• Loan and lease balances on deferral status down to $403.6 million as of September 30, 2020 ($289.5 million of commercial balances and $114.1 million of consumer balances)
• Loan and lease balances declined 3.4% from June 30, 2020, primarily due to declines in the commercial and industrial and consumer portfolios
• Net charge-offs of $24.6 million, or 0.28% of average loans and leases (annualized)
• Provision for credit losses of $69.7 million, down 11.5% from the second quarter of 2020
• Allowance for credit losses, which includes the reserve for unfunded lending commitments, of 1.60% of total loans and leases, up from 1.42% at June 30, 2020
• Efficiency ratio of 75.29%, improved 297 basis points from the second quarter of 2020. Adjusted efficiency ratio of 61.17%⁽¹⁾, up 137 basis points from the second quarter of 2020
• Common equity Tier 1 capital ratio of 11.45%, compared to 11.06% at June 30, 2020
• Declared quarterly cash dividends on common stock of $0.35 per share payable on December 1, 2020

Merger-related Expenses and Notable items in the Third Quarter of 2020 and Second Quarter of 2020⁽

• 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, compared to pre-tax merger-related expenses of $81.6 million, $64.6 million net of tax, or $0.42 per diluted common share for the second quarter of 2020
• Pre-tax expenses, of $154 thousand, $122 thousand net of tax, or $0.00 per diluted common share related to notable items for the third quarter of 2020, compared to pre-tax income, net expenses of $4.4 million, $3.5 million net of tax, or $0.02 per diluted common share related to notable items for the second quarter of 2020, 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.

Note: For the third quarter 2019, TCF’s reported financial results reflect Legacy TCF financial results for the period before August 1, 2019 and the post-merger combined TCF financial results on and after August 1, 2019. The number of shares issued and outstanding, earnings per share, additional paid-in-capital, dividends paid and all references to share quantities of TCF have been retrospectively restated to reflect the equivalent number of shares issued in the Merger as the Merger was treated as a reverse merger.

Summary of Financial Results(1)
	At or For the Quarter Ended																				Change From
	Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,				Jun. 30,			Sep. 30,
(Dollars in thousands, except per share data)	2020				2020				2020				2019				2019				2020			2019
Financial Results
Net income attributable to TCF	$	55,738			$	23,764			$	51,899			$112,399				$	22,148			134.5		%	151.7		%
Net interest income	377,167				378,359				401,481				408,753				371,793				(0.3	)		1.4
Basic earnings per common share	$	0.35			$	0.14			$	0.33			$	0.72			$	0.15			150.0			133.3
Diluted earnings per common share	0.35				0.14				0.32				0.72				0.15				150.0			133.3
Return on average assets ("ROAA")(2)	0.46		%		0.21		%		0.46		%		0.99		%		0.26		%		25		bps	20		bps
ROACE(2)	3.87				1.56				3.64				8.00				1.75				231			212
ROATCE (non-GAAP)(2)(3)	5.71				2.57				5.42				11.35				2.68				314			303
Net interest margin	3.31				3.33				3.73				3.86				4.12				(2	)		(81	)
Net interest margin (FTE)(2)(3)	3.34				3.35				3.76				3.89				4.14				(1	)		(80	)
Net charge-offs as a percentage of average loans and leases(2)	0.28				0.04				0.06				0.07				0.39				24			(11	)
Nonperforming assets as a percentage of total loans and leases and other real estate owned(4)	1.20				0.94				0.80				0.59				0.62				26			58
Efficiency ratio	75.29				78.26				69.57				73.49				91.32				(297	)		(1,603	)
Adjusted Financial Results (non-GAAP)
Adjusted net income attributable to TCF(2)	$	98,696			$	84,862			$	89,855			$161,581				$128,301				16.3		%	(23.1	)	%
Adjusted diluted earnings per common share(3)	$	0.63			$	0.54			$	0.57			$	1.04			$	0.98			16.7			(35.7	)
Adjusted ROAA(2)(3)	0.81		%		0.70		%		0.78		%		1.42		%		1.34		%		11		bps	(53	)	bps
Adjusted ROACE(2)(3)	6.99				6.03				6.43				11.57				11.21				96			(422	)
Adjusted ROATCE(2)(3)	9.96				8.70				9.24				16.25				14.96				126			(500	)
Adjusted efficiency ratio(3)	61.17				59.80				58.24				58.51				58.74				137			243

(1)		For the third quarter 2019, TCF’s reported financial results reflect Legacy TCF financial results for the period before August 1, 2019 and the post-merger combined TCF financial results on and after August 1, 2019.
(2)		Annualized.
(3)		Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.
(4)		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 September 30, 2020												For the Quarter Ended June 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	$	(54,011	)		$	(42,836	)		$	(0.28	)		$	(81,619	)		(64,585		)		$	(0.42	)
Notable items:
Expenses related to the sale of Legacy TCF auto finance portfolio(2)	—				—				—				(901		)		(713		)		—
Branch sales and exit costs, net(3)	—				—				—				14,166				11,210				0.07
Loan servicing rights impairment(4)	(154		)		(122		)		—				(8,858		)		(7,009		)		(0.05		)
Total notable items	(154		)		(122		)		—				4,407				3,488				0.02
Total merger-related and notable items	$	(54,165	)		$	(42,958	)		$	(0.28	)		$	(77,212	)		$	(61,097	)		$	(0.40	)

(1)		Net of tax benefit at our normal tax rate and other tax benefits.
(2)		Second quarter of 2020 included within other noninterest expense ($0.8 million) and compensation and employee benefits ($0.1 million).
(3)		Second quarter of 2020 included within other noninterest income ($14.7 million net gain) and other noninterest expense ($0.6 million).
(4)		Included within other noninterest income.

TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ: TCF) today reported net income of $55.7 million, or diluted earnings per common share of $0.35, for the third quarter of 2020, compared with $23.8 million, or diluted earnings per common share of $0.14, for the second quarter of 2020. Adjusted net income was $98.7 million, or $0.63 per diluted common share for the third quarter of 2020, compared with $84.9 million, or $0.54 per diluted common share, for the second quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

“The highlight of the third quarter was the successful completion of integration activities related to our merger of equals, with our business now aligned under a single brand and going to market as One TCF across the broader footprint,” said Craig R. Dahl, president and chief executive officer. “We were able to complete these efforts on time, despite the challenges related to COVID-19 and our work-from-home approach. This success was driven by the hard work and dedication of our team members across the bank who continued to focus on serving our customers. As a result, we remain on track to achieve our expense target for the fourth quarter. Now fully integrated, we can bring the full breadth and depth of our services - and our team members’ expertise - to enhance our ability to support our customers and communities.

“Financial results for the third quarter included a stable net interest margin, significant declines in loan deferrals, and continued strong capital ratios and liquidity. While loan demand remained at relatively low levels due to economic uncertainty, we have begun to see trends gradually improve over the past couple of months as commercial loan pipelines have been building, including in CRE and certain C&I sectors such as manufacturing. In addition, we are continuing to monitor credit quality trends as we further isolate the portions of certain portfolios that are more heavily impacted by COVID.

“As we look ahead, we expect to benefit from the outcomes of our merger-of-equals, including our expanded product set that is allowing us to better meet the needs of our commercial and consumer customers. This has also resulted in various merger-related revenue synergy initiatives that are still in front of us and provide opportunities to drive incremental organic growth.”

Net Interest Income and Net Interest Margin

Net interest income was $377.2 million for the third quarter of 2020, a decrease of $1.2 million, or 0.3%, from the second quarter of 2020. Purchase accounting accretion and amortization included in net interest income was $17.7 million for the third quarter of 2020, compared to $18.2 million for the second quarter of 2020. Additionally, third quarter of 2020 net interest income recorded included $14.7 million of interest and fee income from PPP less funding costs, compared to $9.6 million for the second quarter of 2020. Adjusted net interest income, excluding purchase accounting accretion and amortization and the impact from PPP loans, a non-GAAP financial measure, was $344.7 million for the third quarter of 2020, compared to $350.6 million for the second quarter of 2020. Net interest margin was 3.31% for the third quarter of 2020, compared to 3.33% in the second quarter of 2020, while net interest margin on a fully tax-equivalent basis (FTE), a non-GAAP financial measure, was 3.34%, down one basis point from the second quarter of 2020. The decrease in net interest margin from the second quarter of 2020 was driven by higher average cash balances and lower yields on loans, leases and securities, partially offset by lower cost of funds. Adjusted net interest margin FTE, excluding purchase accounting accretion and amortization and the impact of PPP loans, a non-GAAP financial measure, was 3.19% for the third quarter of 2020, down one basis point from the second 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 $118.8 million for the third quarter of 2020, a decrease of $14.2 million, or 10.7%, from the second quarter of 2020. 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. Noninterest income for the second quarter of 2020 included notable items of a $14.7 million gain on the sale of our Arizona branches and an $8.9 million loan servicing rights impairment, both included in other noninterest income. Adjusted noninterest income, a non-GAAP financial measure, for the third quarter of 2020 was $119.0 million, compared to $127.2 million in the second quarter of 2020. The third quarter of 2020 noninterest income, compared to the second quarter of 2020, also included decreases of $5.5 million in net gains on sales of loans and leases, $5.3 million in leasing revenue due to a decrease in sales-type lease revenue through our equipment financing activity, and $2.7 million in servicing fee revenue due to accelerated loan servicing rights amortization related to faster prepayment speeds, partially offset by increases of $2.7 million in card and ATM revenue, $2.6 million in fees and service charges on deposit accounts, and $2.3 million in net gains on investment securities. The third quarter of 2020 also included a $2.6 million unfavorable 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 $428 thousand in the second quarter of 2020.

Noninterest Expense

Noninterest expense was $373.4 million for the third quarter of 2020, a decrease of $26.8 million, or 6.7%, from the second quarter of 2020. The decrease in the third quarter of 2020 reflected decreases in merger-related expenses, occupancy and equipment expense and compensation and benefits expense, partially offset by an increase in other noninterest expense. The third quarter of 2020 included $54.0 million of merger-related expenses, compared to $81.6 million for the second quarter of 2020. Noninterest expense for the second quarter of 2020 also included $0.9 million of expense related to the sale of the Legacy TCF auto finance portfolio ($0.8 million in other noninterest expense and $0.1 million in compensation and employee benefits) and $0.6 million of expense related to branch exit costs, included in other noninterest expense considered notable items. Excluding merger-related expenses and notable items, adjusted noninterest expense, a non-GAAP financial measure, was $319.4 million for the third quarter of 2020, compared to $317.2 million for the second quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The third quarter of 2020 also included $1.8 million of federal historic tax credit amortization, included in other noninterest expense, compared to $0.2 million in the second quarter of 2020.

Income Tax Expense

Income tax benefit for the third quarter of 2020 was $4.4 million, compared to income tax expense of $6.2 million, an effective tax rate of 19.1% for the second quarter of 2020. Income tax for the third quarter of 2020 included a benefit of $16.0 million 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 for the third quarter of 2020 was 21.9%.

Credit Quality

Provision for credit losses Provision for credit losses was $69.7 million for the third quarter of 2020, a decrease of $9.1 million, from the second quarter of 2020. The provision for credit losses in the third quarter of 2020 reflects a build to the allowance for credit losses primarily due to commercial portfolio credit risk management activities, driven by Capital Solutions loans and leases, as well as the impact of net charge offs. Third quarter 2020 net charge offs were $24.6 million compared to $3.4 million in the second quarter of 2020.

Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases were 0.28% for the third quarter of 2020, up 24 basis points from the second quarter of 2020. The increase from the second quarter of 2020 was due to an increase in net charge-offs in the commercial and industrial portfolio, primarily driven by two loans totaling $16.1 million of charge-offs. Subsequent to September 30, 2020, we received a $9.1 million full repayment related to one of these loans which was fully charged off at quarter-end.

Allowance for Credit Losses Allowance for credit losses ("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 $549.4 million, or 1.60% of total loans and leases, at September 30, 2020, up from $503.9 million, or 1.42%, at June 30, 2020. The ACL as a percentage of total loans and leases, excluding PPP loans, a non-GAAP financial measure, was 1.69% at September 30, 2020, an increase from 1.49% at June 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. The increase in the ACL and the ACL as a percentage of total loans and leases from June 30, 2020 was primarily due to commercial portfolio credit risk management activities, driven by Capital Solutions loans and leases, partially offset by a decrease in reserve for unfunded lending commitments.

Nonaccrual loans and leases Nonaccrual loans and leases were $376.7 million at September 30, 2020 and represented 1.10% of total loans and leases, compared to $291.5 million, or 0.82% of total loans and leases, at June 30, 2020. The $85.3 million increase in nonaccrual loans and leases from June 30, 2020 was impacted by $46.6 million of motor coach and shuttle bus balances, within our commercial and industrial portfolio, that moved to nonaccrual.

Balance Sheet

Loans and leases Loans and leases were $34.3 billion at September 30, 2020, a decrease of $1.2 billion, or 3.4%, compared to $35.5 billion at June 30, 2020. The decrease was primarily due to a decline in inventory finance loans in the commercial and industrial portfolio related to continued strong dealer activity and the lack of backfill from manufacturers as a result of the previous economic shutdown and slow reopening, in addition to a decline in the consumer loan portfolio. At both September 30, 2020 and June 30, 2020, we had $1.8 billion of PPP loans outstanding, all included in our commercial and industrial loan portfolio.

Investment securities The investment securities portfolio was $7.6 billion at September 30, 2020, an increase of $267.0 million, or 3.6%, compared to $7.3 billion at June 30, 2020. The increase from June 30, 2020 was primarily due to purchases of residential and commercial mortgage-backed securities and municipal securities.

Deposits Deposits were $39.2 billion at both September 30, 2020 and June 30, 2020, despite the continued run-off of higher cost certificates of deposit. Increases in checking deposit account balances of $760.4 million and noninterest bearing deposits of $210.8 million were offset by decreases in certificates of deposits of $808.2 million, money market accounts of $186.9 million and savings account balances of $14.9 million as of September 30, 2020 compared to June 30, 2020.

Capital The common equity Tier 1 capital ratio was 11.45% at September 30, 2020, compared to 11.06% at June 30, 2020. Our capital ratios reflect our election of the five-year CECL transition for regulatory capital purposes.

In response to the COVID-19 pandemic, TCF temporarily suspended buybacks under its share repurchase program, but retains the ability to resume as circumstances warrant. TCF is well positioned with strong capital and liquidity and is committed to supporting our customers, team members and communities.

TCF's board of directors also declared a regular quarterly cash dividend of $0.35 per common share payable on December 1, 2020 to shareholders of record at the close of business on November 16, 2020. In addition, the board of directors declared a quarterly cash dividend of $0.35625 per depositary share payable on December 1, 2020 to shareholders of record of the depositary shares, representing a 1/1,000th interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock, at the close of business on November 16, 2020.

Conference Call Details TCF will host a conference call to discuss third quarter 2020 results on Tuesday, October 27, 2020 at 10:00 a.m. Eastern Time. The conference call will be available via a live webcast on the Investor Relations section of TCF's website, ir.tcfbank.com, and archived for replay. The conference call can also be accessed by dialing [phone] and entering access code 8567352. To listen to the replay via phone, please dial [phone] and enter access code 10148473. The replay begins approximately one hour after the call is completed on Tuesday, October 27, 2020 and will be available through Tuesday, November 3, 2020.

TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $48 billion in total assets at September 30, 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 projections of future performance, targets, guidance, statements of the Corporation's plans and objectives, forecasts of market trends and other matters are forward-looking statements based on the Corporation's assumptions and beliefs. Such statements may be identified by such words or phrases as "will likely result," "are expected to," "will continue," "outlook," "will benefit," "is anticipated," "estimate," "project," "management believes" or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed in such statements and no assurance can be given that the results in any forward-looking statement will be achieved. For these statements, TCF claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date on which it is made and we disclaim any obligation to subsequently revise any forward-looking statement to reflect events or circumstances after such date or to reflect the occurrence of anticipated or unanticipated events.

Certain factors could cause the Corporation's future results to differ materially from those expressed or implied in any forward-looking statements contained herein. These factors include the factors discussed in Part I, Item 1A of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2019 under the heading "Risk Factors" or otherwise disclosed in documents filed or furnished by the Corporation with or to the SEC after the filing of such Annual Report on Form 10-K, and any other cautionary statements, written or oral, which may be made or referred to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

This release also contains forward-looking statements regarding TCF’s outlook or expectations with respect to post-merger integration. Examples of forward-looking statements include, but are not limited to, statements regarding outlook and expectations with respect to the strategic and financial benefits of the merger, including the expected impact on TCF’s future financial performance (including operating and return metrics and operational aspects of post-merger integration).

Use of Non-GAAP Financial Measures

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

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition (Unaudited)
																					Change From
(Dollars in thousands)	Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,				Jun. 30, 2020					Sep 30, 2019
	2020				2020				2020				2019				2019				$			%		$			%
ASSETS:
Cash and cash equivalents:
Cash and due from banks	$	538,481			$	535,507			$	713,413			$	491,787			$	586,060			$	2,974		0.6%		$	(47,579	)	(8.1)%
Interest-bearing deposits with other banks	1,232,773				2,545,170				565,458				736,584				736,954				(1,312,397		)	(51.6)		495,819			67.3
Total cash and cash equivalents	1,771,254				3,080,677				1,278,871				1,228,371				1,323,014				(1,309,423		)	(42.5)		448,240			33.9
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost	300,444				386,483				484,461				442,440				290,238				(86,039		)	(22.3)		10,206			3.5
Investment securities:
Available-for-sale, at fair value	7,446,163				7,219,373				7,025,224				6,720,001				5,579,835				226,790			3.1		1,866,328			33.4
Held-to-maturity, at amortized cost	170,309				130,101				135,619				139,445				144,000				40,208			30.9		26,309			18.3
Total investment securities	7,616,472				7,349,474				7,160,843				6,859,446				5,723,835				266,998			3.6		1,892,637			33.1
Loans and leases held-for-sale	460,427				532,799				287,177				199,786				1,436,069				(72,372		)	(13.6)		(975,642		)	(67.9)
Loans and leases	34,343,691				35,535,824				35,921,614				34,497,464				33,510,752				(1,192,133		)	(3.4)		832,939			2.5
Allowance for loan and lease losses	(515,229		)		(461,114		)		(406,383		)		(113,052		)		(121,218		)		(54,115		)	(11.7)		(394,011		)	N.M.
Loans and leases, net	33,828,462				35,074,710				35,515,231				34,384,412				33,389,534				(1,246,248		)	(3.6)		438,928			1.3
Premises and equipment, net	469,699				472,240				516,454				533,138				554,194				(2,541		)	(0.5)		(84,495		)	(15.2)
Goodwill	1,313,046				1,313,046				1,313,046				1,299,878				1,265,111				0			0.0		47,935			3.8
Other intangible assets, net	151,875				157,373				162,887				168,368				215,910				(5,498		)	(3.5)		(64,035		)	(29.7)
Loan servicing rights	38,253				38,816				47,283				56,313				55,301				(563		)	(1.5)		(17,048		)	(30.8)
Other assets	1,615,857				1,656,842				1,828,130				1,479,401				1,439,305				(40,985		)	(2.5)		176,552			12.3
Total assets	$	47,565,789			$	50,062,460			$	48,594,383			$	46,651,553			$	45,692,511			$	(2,496,671	)	(5.0)%		$	1,873,278		4.1%
LIABILITIES AND EQUITY:
Deposits:
Noninterest-bearing	$	10,691,041			$	10,480,245			$	8,237,916			$	7,970,590			$	7,979,900			$	210,796		2.0%		$	2,711,141		34.0%
Interest-bearing	28,481,056				28,730,627				27,561,387				26,497,873				27,306,174				(249,571		)	(0.9)		1,174,882			4.3
Total deposits	39,172,097				39,210,872				35,799,303				34,468,463				35,286,074				(38,775		)	(0.1)		3,886,023			11.0
Short-term borrowings	655,461				2,772,998				3,482,535				2,669,145				2,607,300				(2,117,537		)	(76.4)		(1,951,839		)	(74.9)
Long-term borrowings	871,845				936,908				2,600,594				2,354,448				860,482				(65,063		)	(6.9)		11,363			1.3
Other liabilities	1,207,966				1,483,127				1,056,118				1,432,256				1,245,238				(275,161		)	(18.6)		(37,272		)	(3.0)
Total liabilities	41,907,369				44,403,905				42,938,550				40,924,312				39,999,094				(2,496,536		)	(5.6)		1,908,275			4.8
Equity:
Preferred stock	169,302				169,302				169,302				169,302				169,302				—			—		—			—
Common stock	152,380				152,233				152,186				152,966				153,571				147			0.1		(1,191		)	(0.8)
Additional paid-in capital	3,450,669				3,441,925				3,433,234				3,462,080				3,478,159				8,744			0.3		(27,490		)	(0.8)
Retained earnings	1,700,044				1,700,480				1,732,932				1,896,427				1,840,214				(436		)	0.0		(140,170		)	(7.6)
Accumulated other comprehensive income	191,771				198,408				166,170				54,277				56,228				(6,637		)	(3.3)		135,543			N.M.
Other	(27,122		)		(27,093		)		(28,140		)		(28,037		)		(27,370		)		(29		)	(0.1)		248			0.9
Total TCF Financial Corporation shareholders' equity	5,637,044				5,635,255				5,625,684				5,707,015				5,670,104				1,789			0.0		(33,060		)	(0.6)
Non-controlling interest	21,376				23,300				30,149				20,226				23,313				(1,924		)	(8.3)		(1,937		)	(8.3)
Total equity	5,658,420				5,658,555				5,655,833				5,727,241				5,693,417				(135		)	0.0		(34,997		)	(0.6)
Total liabilities and equity	$	47,565,789			$	50,062,460			$	48,594,383			$	46,651,553			$	45,692,511			$	(2,496,671	)	(5.0)%		$	1,873,278		4.1%
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, 2020						Sep. 30, 2019
	2020				2020				2020				2019				2019				$				%		$				%
Interest income:
Interest and fees on loans and leases	$	373,112			$	392,826			$	443,096			$	446,738			$	417,370			$	(19,714	)		(5.0)%		$	(44,258	)		(10.6)%
Interest on investment securities:
Taxable	35,648				32,505				40,920				36,282				31,038				3,143				9.7		4,610				14.9
Tax-exempt	3,892				4,155				4,349				4,374				3,385				(263		)		(6.3)		507				15.0
Interest on loans held-for-sale	3,829				3,322				1,561				15,767				1,408				507				15.3		2,421				171.9
Interest on other earning assets	3,967				5,562				5,466				6,617				6,607				(1,595		)		(28.7)		(2,640		)		(40.0)
Total interest income	420,448				438,370				495,392				509,778				459,808				(17,922		)		(4.1)		(39,360		)		(8.6)
Interest expense:
Interest on deposits	31,852				46,785				67,419				77,003				70,900				(14,933		)		(31.9)		(39,048		)		(55.1)
Interest on borrowings	11,429				13,226				26,492				24,022				17,115				(1,797		)		(13.6)		(5,686		)		(33.2)
Total interest expense	43,281				60,011				93,911				101,025				88,015				(16,730		)		(27.9)		(44,734		)		(50.8)
Net interest income	377,167				378,359				401,481				408,753				371,793				(1,192		)		(0.3)		5,374				1.4
Provision for credit losses	69,664				78,726				96,943				14,403				27,188				(9,062		)		(11.5)		42,476				156.2
Net interest income after provision for credit losses	307,503				299,633				304,538				394,350				344,605				7,870				2.6		(37,102		)		(10.8)
Noninterest income:
Leasing revenue	31,905				37,172				33,565				46,686				39,590				(5,267		)		(14.2)		(7,685		)		(19.4)
Fees and service charges on deposit accounts	25,470				22,832				34,597				39,356				34,384				2,638				11.6		(8,914		)		(25.9)
Net gains (losses) on sales of loans and leases	23,490				29,034				20,590				12,934				(5,984		)		(5,544		)		(19.1)		29,474				N.M.
Card and ATM revenue	23,383				20,636				21,685				24,751				23,315				2,747				13.3		68				0.3
Wealth management revenue	6,506				6,206				6,151				6,172				4,241				300				4.8		2,265				53.4
Servicing fee revenue	321				3,041				6,792				6,022				5,121				(2,720		)		(89.4)		(4,800		)		(93.7)
Net gains on investment securities	2,324				8				0				8				5,900				2,316				N.M.		(3,576		)		(60.6)
Other	5,411				14,125				13,583				22,123				(12,309		)		(8,714		)		(61.7)		17,720				N.M.
Total noninterest income	118,810				133,054				136,963				158,052				94,258				(14,244		)		(10.7)		24,552				26.0
Noninterest expense:
Compensation and employee benefits	168,323				171,799				171,528				180,969				155,745				(3,476		)		(2.0)		12,578				8.1
Occupancy and equipment	48,233				54,107				57,288				56,771				49,229				(5,874		)		(10.9)		(996		)		(2.0)
Lease financing equipment depreciation	17,932				18,212				18,450				18,629				19,408				(280		)		(1.5)		(1,476		)		(7.6)
Net foreclosed real estate and repossessed assets	1,518				998				1,859				4,242				2,203				520				52.1		(685		)		(31.1)
Merger-related expenses	54,011				81,619				36,728				47,025				111,259				(27,608		)		(33.8)		(57,248		)		(51.5)
Other	83,423				73,506				88,746				108,935				87,776				9,917				13.5		(4,353		)		(5.0)
Total noninterest expense	373,440				400,241				374,599				416,571				425,620				(26,801		)		(6.7)		(52,180		)		(12.3)
Income before income tax expense (benefit)	52,873				32,446				66,902				135,831				13,243				20,427				63.0		39,630				N.M.
Income tax expense (benefit)	(4,429		)		6,213				13,086				21,375				(11,735		)		(10,642		)		N.M.		7,306				62.3
Income after income tax expense (benefit)	57,302				26,233				53,816				114,456				24,978				31,069				118.4		32,324				129.4
Income attributable to non-controlling interest	1,564				2,469				1,917				2,057				2,830				(905		)		(36.7)		(1,266		)		(44.7)
Net income attributable to TCF Financial Corporation	55,738				23,764				51,899				112,399				22,148				31,974				134.5		33,590				151.7
Preferred stock dividends	2,494				2,494				2,493				2,494				2,494				—				—		—				—
Net income available to common shareholders	$	53,244			$	21,270			$	49,406			$	109,905			$	19,654			$	31,974			150.3%		$	33,590			170.9%
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)	2020				2019				$				%
Interest income:
Interest and fees on loans and leases	$	1,209,034			$	983,890			$	225,144			22.9%
Interest on investment securities:
Taxable	109,073				69,745				39,328				56.4
Tax-exempt	12,396				7,277				5,119				70.3
Interest on loans held-for-sale	8,712				2,832				5,880				N.M.
Interest on other earning assets	14,995				13,739				1,256				9.1
Total interest income	1,354,210				1,077,483				276,727				25.7
Interest expense:
Interest on deposits	146,056				149,154				(3,098		)		(2.1)
Interest on borrowings	51,147				48,050				3,097				6.4
Total interest expense	197,203				197,204				(1		)		0.0
Net interest income	1,157,007				880,279				276,728				31.4
Provision for credit losses	245,333				50,879				194,454				N.M.
Net interest income after provision for credit losses	911,674				829,400				82,274				9.9
Noninterest income:
Leasing revenue	102,642				117,032				(14,390		)		(12.3)
Fees and service charges on deposit accounts	82,899				88,504				(5,605		)		(6.3)
Net gains on sales of loans and leases	73,114				13,374				59,740				N.M.
Card and ATM revenue	65,704				62,470				3,234				5.2
Wealth management revenue	18,863				4,241				14,622				N.M.
Servicing fee revenue	10,154				14,754				(4,600		)		(31.2)
Net gains on investment securities	2,332				7,417				(5,085		)		(68.6)
Other	33,119				(312		)		33,431				N.M.
Total noninterest income	388,827				307,480				81,347				26.5
Noninterest expense:
Compensation and employee benefits	511,650				395,953				115,697				29.2
Occupancy and equipment	159,628				132,789				26,839				20.2
Lease financing equipment depreciation	54,594				57,797				(3,203		)		(5.5)
Net foreclosed real estate and repossessed assets	4,375				9,281				(4,906		)		(52.9)
Merger-related expenses	172,358				124,943				47,415				37.9
Other	245,675				194,781				50,894				26.1
Total noninterest expense	1,148,280				915,544				232,736				25.4
Income before income tax expense	152,221				221,336				(69,115		)		(31.2)
Income tax expense	14,870				28,866				(13,996		)		(48.5)
Income after income tax expense	137,351				192,470				(55,119		)		(28.6)
Income attributable to non-controlling interest	5,950				9,401				(3,451		)		(36.7)
Net income attributable to TCF Financial Corporation	131,401				183,069				(51,668		)		(28.2)
Preferred stock dividends	7,481				7,481				—				—
Net income available to common shareholders	$	123,920			$	175,588			$	(51,668	)		(29.4)%

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields and Rates (Unaudited)
	Quarter Ended
	Sep. 30, 2020								Jun. 30, 2020								Sep. 30, 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	$	361,320		$	2,973		3.27%		$	401,532		$	4,376		4.38%		$	230,767		$	806		1.39%
Investment securities held-to-maturity	135,332			573			1.69		132,054			71			0.21		143,078			602			1.68
Investment securities available-for-sale:
Taxable	6,021,643			35,076			2.33		5,730,762			32,434			2.26		4,232,878			30,436			2.88
Tax-exempt(3)	685,652			4,971			2.90		743,744			5,221			2.81		643,576			4,283			2.66
Loans and leases held-for-sale	490,886			3,829			3.13		356,671			3,322			3.73		118,482			1,408			4.74
Loans and leases(3)(4)
Commercial and industrial	11,740,727			127,751			4.30		12,713,714			140,576			4.41		9,290,978			146,865			6.25
Commercial real estate	9,616,301			95,779			3.90		9,658,124			95,373			3.91		6,964,643			97,042			5.45
Lease financing	2,679,142			32,696			4.88		2,712,291			33,803			4.99		2,570,567			32,833			5.11
Residential mortgage	5,987,754			57,609			3.86		6,326,227			62,023			3.93		4,853,627			51,511			4.23
Home equity	3,399,468			43,489			5.09		3,509,107			45,314			5.19		3,433,830			56,166			6.49
Consumer installment	1,386,448			17,551			5.04		1,459,446			17,703			4.88		2,389,830			34,543			5.73
Total loans and leases(3)(4)	34,809,840			374,875			4.26		36,378,909			394,792			4.33		29,503,475			418,960			5.62
Interest-bearing deposits with banks and other	2,572,254			994			0.16		1,587,665			1,186			0.30		933,014			5,800			2.44
Total interest-earning assets	45,076,927			423,291			3.72		45,331,337			441,402			3.88		35,805,270			462,295			5.11
Other assets	4,462,673								4,384,779								3,289,096
Total assets	$	49,539,600							$	49,716,116							$	39,094,366
LIABILITIES AND EQUITY:
Noninterest-bearing deposits	$	10,654,288							$	9,830,687							$	6,564,195
Interest-bearing deposits:
Savings	9,301,198			4,050			0.17		9,082,184			8,930			0.40		7,676,165			14,110			0.73
Certificates of deposit	6,657,697			18,446			1.10		7,491,502			26,744			1.44		7,320,720			38,233			2.07
Checking	7,029,914			2,025			0.11		6,649,288			2,329			0.14		4,805,843			5,520			0.46
Money market	5,501,747			7,331			0.53		5,380,547			8,782			0.66		3,490,922			13,037			1.48
Total interest-bearing deposits	28,490,556			31,852			0.44		28,603,521			46,785			0.66		23,293,650			70,900			1.21
Total deposits	39,144,844			31,852			0.32		38,434,208			46,785			0.49		29,857,845			70,900			0.94
Borrowings:
Short-term borrowings	2,153,030			2,511			0.46		3,016,490			4,085			0.54		1,884,228			5,345			1.11
Long-term borrowings	910,149			8,917			3.91		1,072,394			9,141			3.40		1,472,150			11,769			3.17
Total borrowings	3,063,179			11,428			1.48		4,088,884			13,226			1.29		3,356,378			17,114			2.01
Total interest-bearing liabilities	31,553,735			43,280			0.55		32,692,405			60,011			0.74		26,650,028			88,014			1.31
Total deposits and borrowings	42,208,023			43,280			0.41		42,523,092			60,011			0.57		33,214,223			88,014			1.05
Accrued expenses and other liabilities	1,633,850								1,534,769								1,197,014
Total liabilities	43,841,873								44,057,861								34,411,237
Total TCF Financial Corporation shareholders' equity	5,675,089								5,630,133								4,657,613
Non-controlling interest in subsidiaries	22,638								28,122								25,516
Total equity	5,697,727								5,658,255								4,683,129
Total liabilities and equity	$	49,539,600							$	49,716,116							$	39,094,366
Net interest spread (FTE)							3.31%								3.31%								4.06%
Net interest income (FTE) and net interest margin (FTE)				$	380,011		3.34%					$	381,391		3.35%					$	374,281		4.14%
Reconciliation to Reported Net Interest Income
Net interest income and net interest margin (GAAP)				$377,167			3.31%					$378,359			3.33%					$371,793			4.12%
Adjustments for taxable equivalent interest(1)(3)
Loans and leases				1,763								1,966								1,590
Tax-exempt investment securities				1,079								1,066								898
Total FTE adjustments				2,842								3,032								2,488
Net interest income and net interest margin (FTE)				$380,009			3.34%					$381,391			3.35%					$374,281			4.14%

(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)
	Nine Months Ended
	9/30/2020										9/30/2019
	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	$	405,680			$	10,501			3.46%		$	149,801			$	2,860			2.55%
Investment securities held-to-maturity	134,557				1,204				1.19		145,627				2,061				1.89
Investment securities available-for-sale:
Taxable	5,881,983				107,870				2.45		3,029,754				67,684				2.98
Tax-exempt(3)	734,110				15,695				2.85		461,499				9,210				2.66
Loans and leases held-for-sale	329,131				8,712				3.53		71,739				2,832				5.27
Loans and leases(3)(4)
Commercial and industrial	12,092,629				429,129				4.70		7,499,975				363,260				6.45
Commercial real estate	9,522,333				308,895				4.26		4,332,238				173,983				5.30
Lease financing	2,691,208				100,655				4.99		2,554,521				98,116				5.12
Residential mortgage	6,141,855				181,011				3.93		3,188,294				109,634				4.59
Home equity	3,474,012				139,906				5.38		3,161,083				160,206				6.78
Consumer installment	1,454,187				54,996				5.05		1,945,059				82,305				5.66
Total loans and leases(3)(4)	35,376,224				1,214,592				4.55		22,681,170				987,504				5.80
Interest-bearing deposits with banks and other	1,569,968				4,494				0.38		494,007				10,878				2.92
Total interest-earning assets	44,431,653				1,363,068				4.07		27,033,597				1,083,029				5.33
Other assets	4,318,287										2,249,678
Total assets	$	48,749,940									$	29,283,275
LIABILITIES AND EQUITY:
Noninterest-bearing deposits	$	9,475,952									$	4,831,271
Interest-bearing deposits:
Savings	8,992,197				26,649				0.40		6,799,432				37,094				0.73
Certificates of deposit	7,157,779				78,255				1.46		5,500,105				83,635				2.03
Checking	6,558,232				10,184				0.21		3,256,409				6,347				0.26
Money market	5,225,858				30,968				0.79		2,144,697				22,078				1.38
Total interest-bearing deposits	27,934,066				146,056				0.70		17,700,643				149,154				1.13
Total deposits	37,410,018				146,056				0.52		22,531,914				149,154				0.88
Borrowings:
Short-term borrowings	2,617,891				17,178				0.86		838,750				9,433				1.48
Long-term borrowings	1,527,986				33,968				2.95		1,543,398				38,616				3.32
Total borrowings	4,145,877				51,146				1.63		2,382,148				48,049				2.67
Total interest-bearing liabilities	32,079,943				197,202				0.82		20,082,791				197,203				1.31
Total deposits and borrowings	41,555,895				197,202				0.63		24,914,062				197,203				1.06
Accrued expenses and other liabilities	1,531,759										1,052,709
Total liabilities	43,087,654										25,966,771
Total TCF Financial Corporation shareholders' equity	5,636,933										3,289,946
Non-controlling interest in subsidiaries	25,353										26,558
Total equity	5,662,286										3,316,504
Total liabilities and equity	$	48,749,940									$	29,283,275
Net interest spread (FTE)									3.44%										4.27%
Net interest income (FTE) and net interest margin (FTE)					$	1,165,866			3.48%						$	885,826			4.36%
Reconciliation to Reported Net Interest Income
Net interest income and net interest margin (GAAP)					$	1,157,007			3.45%						$	880,279			4.35%
Adjustments for taxable equivalent interest(1)(3)
Loans					5,558										3,614
Tax-exempt investment securities					3,299										1,933
Total FTE adjustments					8,857										5,547
Net interest income and net interest margin (FTE)					$	1,165,864			3.48%						$	885,826			4.36%

(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
	Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,				Jun. 30, 2020							Sep. 30, 2019
(Dollars in thousands)	2020				2020				2020				2019				2019				$				%			$				%
ASSETS:
Federal Home Loan Bank and Federal Reserve Bank stocks	$	361,320			$	401,532			$	454,675			$	388,640			$	230,767			$	(40,212	)		(10.0)%			$	130,553			56.6%
Investment securities held-to-maturity	135,332				132,054				136,277				140,434				143,078				3,278				2.5			(7,746		)		(5.4	)
Investment securities available-for-sale:
Taxable	6,021,643				5,730,762				5,892,006				4,960,520				4,232,878				290,881				5.1			1,788,765				42.3
Tax-exempt	685,652				743,744				773,468				778,994				643,576				(58,092		)		(7.8	)		42,076				6.5
Loans and leases held-for-sale	490,886				356,671				138,058				1,121,326				118,482				134,215				37.6			372,404				N.M.
Loans and leases(1) :
Commercial and industrial	11,740,727				12,713,714				11,827,315				10,955,937				9,290,978				(972,987		)		(7.7	)		2,449,749				26.4
Commercial real estate	9,616,301				9,658,124				9,291,540				9,057,834				6,964,643				(41,823		)		(0.4	)		2,651,658				38.1
Lease financing	2,679,142				2,712,291				2,682,323				2,616,360				2,570,567				(33,149		)		(1.2	)		108,575				4.2
Residential mortgage	5,987,754				6,326,227				6,113,279				6,023,647				4,853,627				(338,473		)		(5.4	)		1,134,127				23.4
Home equity	3,399,468				3,509,107				3,514,278				3,604,153				3,433,830				(109,639		)		(3.1	)		(34,362		)		(1.0	)
Consumer installment	1,386,448				1,459,446				1,517,412				1,546,952				2,389,830				(72,998		)		(5.0	)		(1,003,382		)		(42.0	)
Total loans and leases(1)	34,809,840				36,378,909				34,946,147				33,804,883				29,503,475				(1,569,069		)		(4.3	)		5,306,365				18.0
Interest-bearing deposits with banks and other	2,572,254				1,587,665				538,971				656,555				933,014				984,589				62.0			1,639,240				175.7
Total interest-earning assets	45,076,927				45,331,337				42,879,602				41,851,352				35,805,270				(254,410		)		(0.6	)		9,271,657				25.9
Other assets	4,462,673				4,384,779				4,105,824				4,268,162				3,289,096				77,894				1.8			1,173,577				35.7
Total assets	$	49,539,600			$	49,716,116			$	46,985,426			$	46,119,514			$	39,094,366			$	(176,516	)		(0.4)%			$	10,445,234			26.7%
LIABILITIES AND EQUITY:
Noninterest-bearing deposits	$	10,654,288			$	9,830,687			$	7,929,933			$	7,968,769			$	6,564,195			$	823,601			8.4%			$	4,090,093			62.3	%
Interest-bearing deposits:
Savings	9,301,198				9,082,184				8,589,815				8,404,460				7,676,165				219,014				2.4			1,625,033				21.2
Certificates of deposit	6,657,697				7,491,502				7,329,632				7,825,573				7,320,720				(833,805		)		(11.1	)		(663,023		)		(9.1	)
Checking	7,029,914				6,649,288				5,990,309				5,891,566				4,805,843				380,626				5.7			2,224,071				46.3
Money market	5,501,747				5,380,547				4,792,248				4,463,476				3,490,922				121,200				2.3			2,010,825				57.6
Total interest-bearing deposits	28,490,556				28,603,521				26,702,004				26,585,075				23,293,650				(112,965		)		(0.4	)		5,196,906				22.3
Total deposits	39,144,844				38,434,208				34,631,937				34,553,844				29,857,845				710,636				1.8			9,286,999				31.1
Borrowings:
Short-term borrowings	2,153,030				3,016,490				2,689,262				2,585,682				1,884,228				(863,460		)		(28.6	)		268,802				14.3
Long-term borrowings	910,149				1,072,394				2,608,204				1,739,852				1,472,150				(162,245		)		(15.1	)		(562,001		)		(38.2	)
Total borrowings	3,063,179				4,088,884				5,297,466				4,325,534				3,356,378				(1,025,705		)		(25.1	)		(293,199		)		(8.7	)
Total interest-bearing liabilities	31,553,735				32,692,405				31,999,470				30,910,609				26,650,028				(1,138,670		)		(3.5	)		4,903,707				18.4
Total deposits and borrowings	42,208,023				42,523,092				39,929,403				38,879,378				33,214,223				(315,069		)		(0.7	)		8,993,800				27.1
Accrued expenses and other liabilities	1,633,850				1,534,769				1,425,536				1,549,017				1,197,014				99,081				6.5			436,836				36.5
Total liabilities	43,841,873				44,057,861				41,354,939				40,428,395				34,411,237				(215,988		)		(0.5	)		9,430,636				27.4
Total TCF Financial Corporation shareholders' equity	5,675,089				5,630,133				5,605,159				5,667,436				4,657,613				44,956				0.8			1,017,476				21.8
Non-controlling interest in subsidiaries	22,638				28,122				25,328				23,683				25,516				(5,484		)		(19.5	)		(2,878		)		(11.3	)
Total equity	5,697,727				5,658,255				5,630,487				5,691,119				4,683,129				39,472				0.7			1,014,598				21.7
Total liabilities and equity	$	49,539,600			$	49,716,116			$	46,985,426			$	46,119,514			$	39,094,366			$	(176,516	)		(0.4)%			$	10,445,234			26.7	%

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
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Sep. 30,
	2020			2020			2020			2019			2019			2020			2019
ASSETS:
Federal Home Loan Bank and Federal Reserve Bank stocks	3.27	%		4.38	%		2.79	%		3.24	%		1.39	%		(111)		bps	188		bps
Investment securities held-to-maturity	1.69			0.21			1.64			2.53			1.68			148			1
Investment securities available-for-sale:
Taxable	2.33			2.26			2.74			2.85			2.88			7			(55)
Tax-exempt(3)	2.90			2.81			2.85			2.84			2.66			9			24
Loans and leases held-for-sale	3.13			3.73			4.53			5.58			4.74			(60)			(161)
Loans and leases(3)
Commercial and industrial	4.30			4.41			5.42			5.63			6.25			(11)			(195)
Commercial real estate	3.90			3.91			5.01			5.38			5.45			(1)			(155)
Lease financing	4.88			4.99			5.09			5.11			5.11			(11)			(23)
Residential mortgage	3.86			3.93			4.02			4.05			4.23			(7)			(37)
Home equity	5.09			5.19			5.85			5.93			6.49			(10)			(140)
Consumer installment	5.04			4.88			5.23			4.97			5.73			16			(69)
Total loans and leases(3)	4.26			4.33			5.08			5.24			5.62			(7)			(136)
Interest-bearing deposits with banks and other	0.16			0.30			1.72			2.07			2.44			(14)			(228)
Total interest-earning assets	3.72			3.88			4.64			4.85			5.11			(16)			(139)
LIABILITIES:
Interest-bearing deposits:
Savings	0.17			0.40			0.64			0.71			0.73			(23)			(56)
Certificates of deposit	1.10			1.44			1.81			1.97			2.07			(34)			(97)
Checking	0.11			0.14			0.39			0.51			0.46			(3)			(35)
Money market	0.53			0.66			1.25			1.38			1.48			(13)			(95)
Total interest-bearing deposits	0.44			0.66			1.02			1.15			1.21			(22)			(77)
Total deposits	0.32			0.49			0.78			0.88			0.94			(17)			(62)
Borrowings:
Short-term borrowings	0.46			0.54			1.56			1.73			1.11			(8)			(65)
Long-term borrowings	3.91			3.40			2.42			2.87			3.17			51			74
Total borrowings	1.48			1.29			1.98			2.19			2.01			19			(53)
Total interest-bearing liabilities	0.55			0.74			1.18			1.29			1.31			(19)			(76)
Total deposits and borrowings	0.41			0.57			0.94			1.03			1.05			(16)			(64)
Net interest margin (GAAP)	3.31			3.33			3.73			3.86			4.12			(2)			(81)
Net interest margin (FTE)	3.34			3.35			3.76			3.89			4.14			(1)			(80)

(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
	Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,				Jun. 30, 2020					Sep 30, 2019
(Dollars in thousands)	2020				2020				2020				2019				2019				$			%		$			%
Commercial and industrial	$	11,557,237			$	12,200,721			$	12,326,943			$	11,439,602			$	10,913,343			$	(643,484	)	(5.3)%		$	643,894		5.9%
Commercial real estate	9,627,330				9,628,344				9,486,904				9,136,870				8,773,970				(1,014		)	0.0		853,360			9.7
Lease financing	2,724,686				2,707,402				2,708,998				2,699,869				2,594,373				17,284			0.6		130,313			5.0
Total commercial loan and lease portfolio	23,909,253				24,536,467				24,522,845				23,276,341				22,281,686				(627,214		)	(2.6)		1,627,567			7.3
Residential mortgage	5,790,251				6,123,118				6,435,314				6,179,805				6,057,404				(332,867		)	(5.4)		(267,153		)	(4.4)
Home equity	3,302,983				3,445,584				3,453,502				3,498,907				3,609,410				(142,601		)	(4.1)		(306,427		)	(8.5)
Consumer installment	1,341,204				1,430,655				1,509,953				1,542,411				1,562,252				(89,451		)	(6.3)		(221,048		)	(14.1)
Total consumer loan portfolio	10,434,438				10,999,357				11,398,769				11,221,123				11,229,066				(564,919		)	(5.1)		(794,628		)	(7.1)
Total	$	34,343,691			$	35,535,824			$	35,921,614			$	34,497,464			$	33,510,752			$	(1,192,133	)	(3.4)%		$	832,939		2.5%

Composition of Deposits (Unaudited)
	Quarter Ended																				Change From
	Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,				Jun. 30, 2020					Sep 30, 2019
(Dollars in thousands)	2020				2020				2020				2019				2019				$			%		$			%
Noninterest-bearing deposits	$	10,691,041			$	10,480,245			$	8,237,916			$	7,970,590			$	7,979,900			$	210,796		2.0%		$	2,711,141		34.0	%
Interest-bearing deposits:
Savings	9,295,467				9,310,362				8,703,864				8,506,058				8,347,541				(14,895		)	(0.2)		947,926			11.4
Certificates of deposit	6,334,760				7,142,996				7,463,192				7,455,556				8,385,972				(808,236		)	(11.3)		(2,051,212		)	(24.5	)
Checking	7,453,504				6,693,092				6,289,046				5,966,178				6,266,740				760,412			11.4		1,186,764			18.9
Money market	5,397,325				5,584,177				5,105,285				4,570,081				4,305,921				(186,852		)	(3.3)		1,091,404			25.3
Total interest-bearing deposits	28,481,056				28,730,627				27,561,387				26,497,873				27,306,174				(249,571		)	(0.9)		1,174,882			4.3
Total deposits	$	39,172,097			$	39,210,872			$	35,799,303			$	34,468,463			$	35,286,074			$	(38,775	)	(0.1)%		$	3,886,023		11.0	%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Summary of Credit Quality Data
Allowance for Credit Losses (Unaudited)
	Sep. 30,						Jun. 30,						Mar. 31,						Jan. 1,				Dec. 31,						Sep. 30,
	2020						2020						2020						2020				2019						2019
(Dollars in thousands)	Balance			Reserve Rate			Balance			Reserve Rate			Balance			Reserve Rate			Adjusted for adoption of CECL				Balance			Reserve Rate			Balance			Reserve Rate
Allowance for loan and lease losses
Commercial and industrial	$	145,814			1.26%		$	122,024			1.00%		$	117,507			0.95%		$	93,884			$	42,430			0.38%		$	39,974			0.37%
Commercial real estate	197,892				2.06		162,364				1.69		86,209				0.91		67,620				27,308				0.29		24,090				0.27
Lease financing	36,386				1.34		19,041				0.70		27,610				1.02		21,631				14,742				0.55		14,367				0.55
Residential mortgage	62,006				1.07		79,479				1.30		97,185				1.51		72,939				8,099				0.13		19,816				0.33
Home equity	49,003				1.48		56,824				1.65		57,694				1.67		47,003				17,795				0.51		21,112				0.58
Consumer installment	24,128				1.80		21,382				1.49		20,178				1.34		15,967				2,678				0.17		1,859				0.12
Total allowance for loan and lease losses	515,229				1.50		461,114				1.30		406,383				1.13		319,044				113,052				0.33		121,218				0.36
Reserve for unfunded lending commitments	34,129						42,788						22,188						18,235				3,528						3,461
Total allowance for credit losses	$	549,358			1.60%		$	503,902			1.42%		$	428,571			1.19%		$	337,279			$	116,580			0.34%		$	124,679			0.37%

Changes in Allowance for Credit Losses
	Quarter Ended																				Change From
	Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,				Jun. 30,				Sep. 30,
(Dollars in thousands)	2020				2020				2020				2019				2019				2020				2019
Allowance for loan and lease losses
Balance, beginning of period	$	461,114			$	406,383			$	113,052			$	121,218			$	146,503			$	54,731			$	314,611
Impact of CECL adoption	—				—				205,992				—				—				—				—
Adjusted balance, beginning of period	461,114				406,383				319,044				121,218				146,503				54,731				314,611
Charge-offs	(32,235		)		(9,958		)		(14,729		)		(16,891		)		(35,547		)		(22,277		)		3,312
Recoveries	7,659				6,563				9,252				10,654				6,969				1,096				690
Net (charge-offs) recoveries	(24,576		)		(3,395		)		(5,477		)		(6,237		)		(28,578		)		(21,181		)		4,002
Provision for credit losses related to loans and leases(1)	78,323				58,126				92,990				14,403				27,188				20,197				51,135
Other(2)	368				—				(174		)		(16,332		)		(23,895		)		368				24,263
Balance, end of period	515,229				461,114				406,383				113,052				121,218				54,115				394,011
Reserve for unfunded lending commitments
Balance, beginning of period	42,788				22,188				3,528				3,461				1,936				20,600				40,852
Impact of CECL adoption	—				—				14,707				—				—				—				—
Adjusted balance, beginning of period	42,788				22,188				18,235				3,461				1,936				20,600				40,852
Provision (benefit) for credit losses related to unfunded lending commitments(1)	(8,659		)		20,600				3,953				67				(342		)		(29,259		)		(8,317		)
Addition due to merger	—				—				—				—				1,867				—				(1,867		)
Balance, end of period	34,129				42,788				22,188				3,528				3,461				(8,659		)		30,668
Total allowance for credit losses	$	549,358			$	503,902			$	428,571			$	116,580			$	124,679			$	45,456			$	424,679

(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
	Sep. 30,							Jun. 30,							Mar. 31,							Dec. 31,							Sep. 30,
	2020							2020							2020							2019							2019
(Dollars in thousands)	Balance				Rate(1)			Balance				Rate(1)			Balance				Rate(1)			Balance				Rate(1)			Balance				Rate(1)
Commercial and industrial	$	(22,201	)		0.76	%		$	9			—	%		$	(4,022	)		0.14	%		$	(5,736	)		0.21	%		$	(17,631	)		0.76	%
Commercial real estate	(144		)		0.01			(644		)		0.03			563				(0.02	)		(7		)		—			13				—
Lease financing	(161		)		0.02			(1,392		)		0.21			(878		)		0.13			(1,749		)		0.27			(2,192		)		0.34
Residential mortgage	803				(0.05	)		(871		)		0.06			355				(0.02	)		1,552				(0.10	)		(189		)		0.02
Home equity	(237		)		0.03			(335		)		0.04			(246		)		0.03			2,280				(0.25	)		405				(0.05	)
Consumer installment	(2,636		)		0.76			(162		)		0.04			(1,249		)		0.33			(2,577		)		0.67			(8,984		)		1.50
Total net (charge-offs) recoveries	$	(24,576	)		0.28	%		$	(3,395	)		0.04	%		$	(5,477	)		0.06	%		$	(6,237	)		0.07	%		$	(28,578	)		0.39	%

(1)

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

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,
	2020			2020			2020			2019			2019			2020			2019
Commercial and industrial	0.03	%		0.02	%		—	%		—	%		0.02	%		1		bps	1		bps
Commercial real estate	—			—			0.02			0.02			0.09			—			(9	)
Lease financing	0.13			0.18			0.11			0.07			0.09			(5	)		4
Residential mortgage	0.02			0.01			0.01			0.01			0.01			1			1
Home equity	—			—			0.01			—			—			—			—
Consumer installment	—			—			—			0.01			—			—			—
Subtotal	0.02			0.02			0.02			0.01			0.04			—			(2	)
Portfolios acquired with deteriorated credit quality(2)	N/A			N/A			N/A			10.43			5.47			N/A			N/A
Total delinquencies	0.02	%		0.02	%		0.02	%		0.09	%		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
	Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,				Jun. 30,				Sep. 30,
(Dollars in thousands)	2020				2020				2020				2019				2019				2020				2019
Nonaccrual loans and leases:
Commercial and industrial	$	140,492			$	98,184			$	84,157			$	53,812			$	55,039			$	42,308			$	85,453
Commercial real estate	70,252				57,521				47,032				29,735				26,518				12,731				43,734
Lease financing	42,023				18,756				13,170				10,957				11,503				23,267				30,520
Residential mortgage	65,235				67,762				61,980				38,577				48,816				(2,527		)		16,419
Home equity	52,184				47,560				43,147				35,863				39,296				4,624				12,888
Consumer installment	6,535				1,668				989				714				636				4,867				5,899
Total nonaccrual loans and leases(1)	376,721				291,451				250,475				169,658				181,808				85,270				194,913
Other real estate owned	35,554				42,744				38,914				34,256				27,638				(7,190		)		7,916
Total nonperforming assets	$	412,275			$	334,195			$	289,389			$	203,914			$	209,446			$	78,080			$	202,829
Nonaccrual loans and leases as a percentage of total loans and leases(1)	1.10		%		0.82		%		0.70		%		0.49		%		0.54		%		28			bps	56			bps
Allowance for loan and lease losses as a percentage of nonaccrual loans and leases(1)	136.77				158.21				162.24				66.64				66.67				(2,144		)		7,010
Allowance for credit losses as a percentage of nonaccrual loans and leases(1)	145.83				172.89				171.10				68.71				68.58				(2,706		)		7,725
Nonperforming assets as a percentage of total loans and leases and other real estate owned(1)	1.20				0.94				0.80				0.59				0.62				26				58

(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)	Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,				Jun. 30,		Sep. 30,
	2020				2020				2020				2019				2019				2020		2019
Dividends declared per common share	$	0.35			$	0.35			$	0.35			$	0.35			$	0.35			0.0	%	0.0		%
Book value per common share	35.88				35.91				35.85				36.20				35.82				(0.1)		0.2
Tangible book value per common share(1)	26.27				26.25				26.16				26.60				26.18				0.1		0.3
Common equity to assets	11.50		%		10.92		%		11.23		%		11.87		%		12.04		%		58	bps	(54)		bps
Tangible common equity to tangible assets(1)	8.68				8.22				8.45				9.01				9.09				46		(41)
Regulatory Capital:(2)
Common equity Tier 1 capital	$	4,053,931			$	4,028,681			$	4,026,304			$	4,050,826			$	4,009,214			0.6	%	1.1		%
Tier 1 capital	4,244,609				4,221,283				4,225,755				4,236,648				4,197,706				0.6		1.1
Total capital	4,972,715				4,907,760				4,744,899				4,681,630				4,652,708				1.3		6.9
Common equity Tier 1 capital ratio	11.45		%		11.06		%		10.44		%		10.99		%		10.88		%		39	bps	57		bps
Tier 1 risk-based capital ratio	11.98				11.59				10.96				11.49				11.40				39		58
Total risk-based capital ratio	14.04				13.47				12.31				12.70				12.63				57		141
Tier 1 leverage ratio	8.83				8.75				9.27				9.49				11.16				8		(233)

(1)		See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.
(2)		September 30, 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
		Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,
(Dollars in thousands, except per share data)		2020				2020				2020				2019				2019
Net income available to common shareholders	(a)	$	53,244			$	21,270			$	49,406			$	109,905			$	19,654
Merger-related expenses		54,011				81,619				36,728				47,025				111,259
Notable items:
Sale of legacy TCF auto finance portfolio and related expenses(1)		—				901				3,063				12,864				19,264
Termination of interest rate swaps(2)		—				—				—				—				17,302
Gain on sale of certain investment securities(3)		—				—				—				—				(5,869		)
Gains on sales of branches, write-down of company-owned vacant land parcels and branch exit costs, net(4)		—				(14,166		)		—				3,494				5,890
Pension fair valuation adjustment(5)		—				—				—				6,341				—
Loan servicing rights (recovery) impairment(2)		154				8,858				8,236				(638		)		4,520
Total notable items		154				(4,407		)		11,299				22,061				41,107
Total merger-related and notable items		54,165				77,212				48,027				69,086				152,366
Related income tax expense, net of benefits(6)		(11,207		)		(16,114		)		(10,071		)		(19,904		)		(46,213		)
Total adjustments, net of tax		42,958				61,098				37,956				49,182				106,153
Adjusted earnings allocated to common stock	(b)	$	96,202			$	82,368			$	87,362			$	159,087			$	125,807
Weighted-average common shares outstanding used in diluted earnings per common share calculation(7)	(c)	151,821,592				151,660,139				152,114,017				152,658,766				128,754,588
Diluted earnings per common share	(a)/(c)	$	0.35			$	0.14			$	0.32			$	0.72			$	0.15
Adjusted diluted earnings per common share	(b)/(c)	0.63				0.54				0.57				1.04				0.98
Net income attributable to TCF		$	55,738			$	23,764			$	51,899			$	112,399			$	22,148
Total adjustments, net of tax		42,958				61,098				37,956				49,182				106,153
Adjusted net income attributable to TCF		$	98,696			$	84,862			$	89,855			$	161,581			$	128,301

(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). Third quarter 2019 amount included within net gains (losses) on sales of loans and leases.
(2)		Included within other noninterest income.
(3)		Included within net gains on investment securities.
(4)		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 and third quarter of 2019 included within other noninterest expense.
(5)		Included within other noninterest expense.
(6)		Included within income tax expense (benefit).
(7)		Assumes conversion of common shares, as applicable.

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
		Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,
(Dollars in thousands)		2020				2020				2020				2019				2019
Adjusted net income after tax expense:
Income after tax expense	(a)	$	57,302			$	26,233			$	53,816			$	114,456			$	24,978
Merger-related expenses		54,011				81,619				36,728				47,025				111,259
Notable items		154				(4,407		)		11,299				22,061				41,107
Related income tax expense, net of tax benefits		(11,207		)		(16,114		)		(10,071		)		(19,904		)		(46,213		)
Adjusted net income after tax expense for ROAA calculation	(b)	100,260				87,331				91,772				163,638				131,131
Net income available to common shareholders	(c)	53,244				21,270				49,406				109,905				19,654
Other intangibles amortization		5,498				5,516				5,480				5,505				4,544
Related income tax expense		(1,137		)		(1,151		)		(1,149		)		(1,284		)		(1,085		)
Net income available to common shareholders used in ROATCE calculation	(d)	57,605				25,635				53,737				114,126				23,113
Adjusted net income available to common shareholders:
Net income available to common shareholders		53,244				21,270				49,406				109,905				19,654
Notable items		154				(4,407		)		11,299				22,061				41,107
Merger-related expenses		54,011				81,619				36,728				47,025				111,259
Related income tax expense, net of tax benefits		(11,207		)		(16,114		)		(10,071		)		(19,904		)		(46,213		)
Net income available to common shareholders used in adjusted ROACE calculation	(e)	96,202				82,368				87,362				159,087				125,807
Other intangibles amortization		5,498				5,516				5,480				5,505				4,544
Related income tax expense		(1,137		)		(1,151		)		(1,149		)		(1,284		)		(1,085		)
Net income available to common shareholders used in adjusted ROATCE calculation	(f)	100,563				86,733				91,693				163,308				129,266
Average balances:
Average assets	(g)	49,539,600				49,716,116				46,985,426				46,119,514				39,094,366
Total equity		5,697,727				5,658,255				5,630,487				5,691,119				4,683,129
Non-controlling interest in subsidiaries		(22,638		)		(28,122		)		(25,328		)		(23,683		)		(25,516		)
Total TCF Financial Corporation shareholders' equity		5,675,089				5,630,133				5,605,159				5,667,436				4,657,613
Preferred stock		(169,302		)		(169,302		)		(169,302		)		(169,302		)		(169,302		)
Average total common shareholders' equity used in ROACE calculation	(h)	5,505,787				5,460,831				5,435,857				5,498,134				4,488,311
Goodwill, net		(1,313,046		)		(1,313,046		)		(1,301,080		)		(1,266,166		)		(890,155		)
Other intangibles, net		(155,142		)		(160,841		)		(166,298		)		(211,294		)		(142,925		)
Average tangible common shareholders' equity used in ROATCE calculation	(i)	$	4,037,599			$	3,986,944			$	3,968,479			$	4,020,674			$	3,455,231
ROAA(1)	(a)/(g)	0.46		%		0.21		%		0.46		%		0.99		%		0.26		%
Adjusted ROAA(1)	(b)/(g)	0.81				0.70				0.78				1.42				1.34
ROACE(1)	(c)/(h)	3.87				1.56				3.64				8.00				1.75
Adjusted ROACE(1)	(e)/(h)	6.99				6.03				6.43				11.57				11.21
ROATCE(1)	(d)/(i)	5.71				2.57				5.42				11.35				2.68
Adjusted ROATCE(1)	(f)/(i)	9.96				8.70				9.24				16.25				14.96

(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)		2020				2020				2020				2019				2019
Noninterest expense	(a)	$	373,440			$	400,241			$	374,599			$	416,571			$	425,620
Merger-related expenses		(54,011		)		(81,619		)		(36,728		)		(47,025		)		(111,259		)
Write-down of company-owned vacant land parcels and branch exit costs		—				(551		)		—				(3,494		)		(5,890		)
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		319,429				317,170				334,808				355,041				308,471
Lease financing equipment depreciation		(17,932		)		(18,212		)		(18,450		)		(18,629		)		(19,408		)
Amortization of intangibles		(5,498		)		(5,516		)		(5,480		)		(5,505		)		(4,544		)
Federal historic tax credit amortization		(1,758		)		(179		)		(1,521		)		(4,030		)		—
Adjusted noninterest expense, efficiency ratio	(b)	294,241				293,263				309,357				326,877				284,519
Net interest income		377,167				378,359				401,481				408,753				371,793
Noninterest income		118,810				133,054				136,963				158,052				94,258
Total revenue	(c)	495,977				511,413				538,444				566,805				466,051
Noninterest income		118,810				133,054				136,963				158,052				94,258
Gain on sales of branches		—				(14,717		)		—				—				—
Sale of Legacy TCF auto finance portfolio		—				—				—				8,194				19,264
Termination of interest rate swaps		—				—				—				—				17,302
Gain on sales of certain investment securities		—				—				—				—				(5,869		)
Loan servicing rights impairment (recovery)		154				8,858				8,236				(638		)		4,520
Adjusted noninterest income		118,964				127,195				145,199				165,608				129,475
Net interest income		377,167				378,359				401,481				408,753				371,793
Net interest income FTE adjustment		2,842				3,032				2,983				2,896				2,488
Adjusted net interest income (FTE)		380,009				381,391				404,464				411,649				374,281
Lease financing equipment depreciation		(17,932		)		(18,212		)		(18,450		)		(18,629		)		(19,408		)
Adjusted total revenue, efficiency ratio	(d)	$	481,041			$	490,374			$	531,213			$	558,628			$	484,348
Efficiency ratio	(a)/(c)	75.29		%		78.26		%		69.57		%		73.49		%		91.32		%
Adjusted efficiency ratio	(b)/(d)	61.17				59.80				58.24				58.51				58.74

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
	Sep. 30,				Jun. 30,
(Dollars in thousands)	2020				2020
Net Interest Income	$	377,167			$	378,359
Purchase accounting accretion and amortization	(17,710		)		(18,209		)
Adjusted net interest income, excluding purchase accounting accretion and amortization	$	359,457			$	360,150
Net fees recognized on PPP loans	(11,886		)		(7,805		)
Interest recognition on PPP loans(1)	(2,824		)		(1,759		)
Total PPP loans impact	(14,710		)		(9,564		)
Adjusted net interest income, excluding purchase accounting accretion and amortization and PPP impact	$	344,747			$	350,586
Net interest margin (FTE)	3.34		%		3.35		%
Purchase accounting accretion and amortization impact	(0.16		)		(0.16		)
Adjusted net interest margin, excluding purchase accounting accretion and amortization (FTE)	3.18				3.19
PPP loans impact(2)	0.01				0.01
Adjusted net interest margin, excluding purchase accounting accretion and amortization and PPP loans impact (FTE)	3.19		%		3.20		%

(1)		Interest income recorded on PPP loans less funding costs.
(2)		The exclusion of PPP loans additionally reduces average earning assets by $1.8 billion and $1.2 billion in the third and second quarters of 2020, respectively.

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)		2020				2020				2020				2019				2019
Total equity		$	5,658,420			$	5,658,555			$	5,655,833			$	5,727,241			$	5,693,417
Non-controlling interest in subsidiaries		(21,376		)		(23,300		)		(30,149		)		(20,226		)		(23,313		)
Total TCF Financial Corporation shareholders' equity		5,637,044				5,635,255				5,625,684				5,707,015				5,670,104
Preferred stock		(169,302		)		(169,302		)		(169,302		)		(169,302		)		(169,302		)
Total common stockholders' equity	(a)	5,467,742				5,465,953				5,456,382				5,537,713				5,500,802
Goodwill, net		(1,313,046		)		(1,313,046		)		(1,313,046		)		(1,299,878		)		(1,265,111		)
Other intangibles, net		(151,875		)		(157,373		)		(162,887		)		(168,368		)		(215,910		)
Tangible common shareholders' equity	(b)	4,002,821				3,995,534				3,980,449				4,069,467				4,019,781
Total assets	(c)	47,565,789				50,062,460				48,594,383				46,651,553				45,692,511
Goodwill, net		(1,313,046		)		(1,313,046		)		(1,313,046		)		(1,299,878		)		(1,265,111		)
Other intangibles, net		(151,875		)		(157,373		)		(162,887		)		(168,368		)		(215,910		)
Tangible assets	(d)	$	46,100,868			$	48,592,041			$	47,118,450			$	45,183,307			$	44,211,490
Common stock shares outstanding	(e)	152,379,722				152,233,106				152,185,984				152,965,571				153,571,381
Common equity to assets	(a) / (c)	11.50		%		10.92		%		11.23		%		11.87		%		12.04		%
Tangible common equity to tangible assets	(b) / (d)	8.68				8.22				8.45				9.01				9.09
Book value per common share	(a) / (e)	$	35.88			$	35.91			$	35.85			$	36.20			$	35.82
Tangible book value per common share	(b) / (e)	26.27				26.25				26.16				26.60				26.18

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
	Sep. 30,				Jun. 30,					Jun. 30, 2020
(Dollars in thousands)	2020				2020					$				%
Commercial and industrial	$11,557,237				$12,200,721					$	(643,484	)		(5.3)%
Commercial real estate	9,627,330				9,628,344					(1,014		)		0.0
Lease financing	2,724,686				2,707,402					17,284				0.6
Total commercial loan and lease portfolio	23,909,253				24,536,467					(627,214		)		(2.6)
Residential mortgage	5,790,251				6,123,118					(332,867		)		(5.4)
Home equity	3,302,983				3,445,584					(142,601		)		(4.1)
Consumer installment	1,341,204				1,430,655					(89,451		)		(6.3)
Total consumer loan portfolio	10,434,438				10,999,357					(564,919		)		(5.1)
Total loans and leases	34,343,691				35,535,824					(1,192,133		)		(3.4)
PPP (Commercial and industrial)	1,836,850				1,819,469					17,381				1.0
Loans and leases excluding PPP loans
Commercial and industrial	9,720,387				10,381,252					(660,865		)		(6.4)
Commercial real estate	9,627,330				9,628,344					(1,014		)		0.0
Lease financing	2,724,686				2,707,402					17,284				0.6
Total commercial loan and lease portfolio	22,072,403				22,716,998					(644,595		)		(2.8)
Residential mortgage	5,790,251				6,123,118					(332,867		)		(5.4)
Home equity	3,302,983				3,445,584					(142,601		)		(4.1)
Consumer installment	1,341,204				1,430,655					(89,451		)		(6.3)
Total consumer loan portfolio	10,434,438				10,999,357					(564,919		)		(5.1)
Total loans and leases, excluding PPP loans	$32,506,841				$33,716,355					$	(1,209,514	)		(3.6)%
Allowance for credit losses	$	549,358			$	503,902				$	45,456			9.0%
Allowance for credit losses as a % of total loans and leases	1.60		%		1.42		%			18				bp
Allowance for credit losses as a % of loans and leases, excluding PPP loans	1.69				1.49					20

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Source: TCF Financial Corporation

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