TCF Reports Fourth Quarter 2020 Results

TCF Financial Corporation (NASDAQ: TCF):

Fourth Quarter 2020 Highlights

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

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

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

(1)

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

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

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

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

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

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

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

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

Net Interest Income and Net Interest Margin

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

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

Noninterest Income

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

Noninterest Expense

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

Income Tax Expense

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

Credit Quality

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

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

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

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

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

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

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

(1)

Denotes a non-GAAP financial measure.

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

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

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

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

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

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

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

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

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

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

Use of Non-GAAP Financial Measures

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

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

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

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

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

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

(1)		Interest and yields are presented on a fully tax-equivalent basis.
(2)		Annualized.
(3)		The yield on tax-exempt loans and investment securities available-for-sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.
(4)		Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income.

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

(1)		Interest and yields are presented on a fully tax-equivalent basis.
(2)		Annualized.
(3)		The yield on tax-exempt loans and investment securities available-for-sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.
(4)		Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income.

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

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Quarterly Yields and Rates(1)(2) (Unaudited)
	Quarter Ended															Change From
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Dec. 31,
	2020			2020			2020			2020			2019			2020			2019
ASSETS:
Federal Home Loan Bank and Federal Reserve Bank stocks	3.77	%		3.27	%		4.38	%		2.79	%		3.24	%		50		bps	53		bps
Investment securities held-to-maturity	1.57			1.69			0.21			1.64			2.53			(12	)		(96	)
Investment securities available-for-sale:
Taxable	2.12			2.33			2.26			2.74			2.85			(21	)		(73	)
Tax-exempt(3)	2.93			2.90			2.81			2.85			2.84			3			9
Loans and leases held-for-sale	2.56			3.13			3.73			4.53			5.58			(57	)		(302	)
Loans and leases(3)
Commercial and industrial	4.51			4.30			4.41			5.42			5.63			21			(112	)
Commercial real estate	3.91			3.90			3.91			5.01			5.38			1			(147	)
Lease financing	4.83			4.88			4.99			5.09			5.11			(5	)		(28	)
Residential mortgage	3.64			3.86			3.93			4.02			4.05			(22	)		(41	)
Home equity	4.93			5.09			5.19			5.85			5.93			(16	)		(100	)
Consumer installment	5.06			5.04			4.88			5.23			4.97			2			9
Total loans and leases(3)	4.28			4.26			4.33			5.08			5.24			2			(96	)
Interest-bearing deposits with banks and other	0.34			0.16			0.30			1.72			2.07			18			(173	)
Total interest-earning assets	3.83			3.72			3.88			4.64			4.85			11			(102	)
LIABILITIES:
Interest-bearing deposits:
Savings	0.07			0.17			0.40			0.64			0.71			(10	)		(64	)
Certificates of deposit	0.80			1.10			1.44			1.81			1.97			(30	)		(117	)
Checking	0.10			0.11			0.14			0.39			0.51			(1	)		(41	)
Money market	0.42			0.53			0.66			1.25			1.38			(11	)		(96	)
Total interest-bearing deposits	0.30			0.44			0.66			1.02			1.15			(14	)		(85	)
Total deposits	0.22			0.32			0.49			0.78			0.88			(10	)		(66	)
Borrowings:
Short-term borrowings	0.16			0.46			0.54			1.56			1.73			(30	)		(157	)
Long-term borrowings	2.87			3.91			3.40			2.42			2.87			(104	)		0
Total borrowings	2.41			1.48			1.29			1.98			2.19			93			22
Total interest-bearing liabilities	0.41			0.55			0.74			1.18			1.29			(14	)		(88	)
Total deposits and borrowings	0.30			0.41			0.57			0.94			1.03			(11	)		(73	)
Net interest margin (GAAP)	3.53			3.31			3.33			3.73			3.86			22			(33	)
Net interest margin (FTE)	3.55			3.34			3.35			3.76			3.89			21			(34	)

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

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

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

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

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

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

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

(1)

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

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

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Summary of Credit Quality Data (Unaudited), Continued
Nonperforming Assets
																					Change From
	Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,						Dec. 31,
(Dollars in thousands)		2020				2020				2020				2020				2019					2020						2019
Nonaccrual loans and leases:
Commercial and industrial	$	259,439			$	140,492			$	98,184			$	84,157			$	53,812			$		118,947				$		205,627
Commercial real estate		154,439				70,252				57,521				47,032				29,735					84,187						124,704
Lease financing		90,822				42,023				18,756				13,170				10,957					48,799						79,865
Total commercial		504,700				252,767				174,461				144,359				94,504					251,933						410,196
Residential mortgage		97,653				65,235				67,762				61,980				38,577					32,418						59,076
Home equity		69,383				52,184				47,560				43,147				35,863					17,199						33,520
Consumer installment		5,566				6,535				1,668				989				714					(969	)					4,852
Total consumer		172,602				123,954				116,990				106,116				75,154					48,648						97,448
Total nonaccrual loans and leases(1)		677,302				376,721				291,451				250,475				169,658					300,581						507,644
Other real estate owned		33,192				35,554				42,744				38,914				34,256					(2,362	)					(1,064	)
Total nonperforming assets	$	710,494			$	412,275			$	334,195			$	289,389			$	203,914			$		298,219				$		506,580
Nonaccrual loans and leases as a percentage of total loans and leases(1)		1.97	%			1.10	%			0.82	%			0.70	%			0.49	%				87			bps			148			bps
Allowance for loan and lease losses as a percentage of nonaccrual loans and leases(1)		77.64				136.77				158.21				162.24				66.64					(5,913	)					1,100
Allowance for credit losses as a percentage of nonaccrual loans and leases(1)		81.08				145.83				172.89				171.10				68.71					(6,475	)					1,237
Nonperforming assets as a percentage of total loans and leases and other real estate owned(1)		2.06				1.20				0.94				0.80				0.59					86						147

(1)

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

Consolidated Capital Information (Unaudited)
																					Change From
(Dollars in thousands, except per share data)	Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,			Dec. 31,
	2020				2020				2020				2020				2019				2020			2019
Book value per common share	$	36.06			$	35.88			$	35.91			$	35.85			$	36.20			0.5		%	(0.4	)	%
Tangible book value per common share(1)	26.49				26.27				26.25				26.16				26.60				0.8			(0.4	)
Common equity to assets	11.51		%		11.50		%		10.92		%		11.23		%		11.87		%		1		bps	(36	)	bps
Tangible common equity to tangible assets(1)	8.72				8.68				8.22				8.45				9.01				4			(29	)
Regulatory Capital:(2)
Common equity Tier 1 capital	$	4,103,007			$	4,053,931			$	4,028,681			$	4,026,304			$	4,050,826			1.2		%	1.3		%
Tier 1 capital	4,290,793				4,244,609				4,221,283				4,225,755				4,236,648				1.1			1.3
Total capital	5,026,611				4,972,715				4,907,760				4,744,899				4,681,630				1.1			7.4
Common equity Tier 1 capital ratio	11.45		%		11.45		%		11.06		%		10.44		%		10.99		%		0		bps	46		bps
Tier 1 risk-based capital ratio	11.98				11.98				11.59				10.96				11.49				0			49
Total risk-based capital ratio	14.03				14.04				13.47				12.31				12.70				(1	)		133
Tier 1 leverage ratio	9.34				8.83				8.75				9.27				9.49				51			(15	)

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
Computation of adjusted diluted earnings per common share and adjusted net income:
		Quarter Ended
		Dec. 31,					Sep. 30,					Jun. 30,					Mar. 31,					Dec. 31,
(Dollars in thousands, except per share data)		2020					2020					2020					2020					2019
Net income available to common shareholders	(a)	$	88,864				$	53,244				$	21,270				$	49,406				$	109,905
Merger-related expenses		31,530					54,011					81,619					36,728					47,025
Notable items:
Sale of legacy TCF auto finance portfolio and related expenses(1)		—					—					901					3,063					12,864
Gains on sales of branches, write-down of company-owned vacant land parcels and branch exit costs, net(2)		—					—					(14,166		)			—					3,494
Pension fair valuation adjustment(3)		—					—					—					—					6,341
Loan servicing rights (recovery) impairment(4)		357					154					8,858					8,236					(638		)
Total notable items		357					154					(4,407		)			11,299					22,061
Total merger-related and notable items		31,887					54,165					77,212					48,027					69,086
Related income tax expense, net of benefits(5)		(7,191		)			(11,207		)			(16,114		)			(10,071		)			(19,904		)
Total adjustments, net of tax		24,696					42,958					61,098					37,956					49,182
Adjusted earnings allocated to common stock	(b)	$	113,560				$	96,202				$	82,368				$	87,362				$	159,087
Weighted-average common shares outstanding used in diluted earnings per common share calculation	(c)	152,084,428					151,821,592					151,660,139					152,114,017					152,658,766
Diluted earnings per common share	(a)/(c)	$	0.58				$	0.35				$	0.14				$	0.32				$	0.72
Adjusted diluted earnings per common share	(b)/(c)	0.75					0.63					0.54					0.57					1.04
Net income attributable to TCF		$	91,358				$	55,738				$	23,764				$	51,899				$	112,399
Total adjustments, net of tax		24,696					42,958					61,098					37,956					49,182
Adjusted net income attributable to TCF		$	116,054				$	98,696				$	84,862				$	89,855				$	161,581

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued
Computation of adjusted return on average assets, common equity and average tangible common equity:
		Quarter Ended
		Dec. 31,					Sep. 30,					Jun. 30,					Mar. 31,					Dec. 31,
(Dollars in thousands)		2020					2020					2020					2020					2019
Adjusted net income after tax expense:
Income after tax expense	(a)	$	92,690				$	57,302				$	26,233				$	53,816				$	114,456
Merger-related expenses		31,530					54,011					81,619					36,728					47,025
Notable items		357					154					(4,407		)			11,299					22,061
Related income tax expense, net of tax benefits		(7,191		)			(11,207		)			(16,114		)			(10,071		)			(19,904		)
Adjusted net income after tax expense for adjusted ROAA calculation	(b)	117,386					100,260					87,331					91,772					163,638
Net income available to common shareholders	(c)	88,864					53,244					21,270					49,406					109,905
Other intangibles amortization		5,498					5,498					5,516					5,480					5,505
Related income tax expense		(1,240		)			(1,137		)			(1,151		)			(1,149		)			(1,284		)
Adjusted net income available to common shareholders used in adjusted ROATCE calculation	(d)	93,122					57,605					25,635					53,737					114,126
Adjusted net income available to common shareholders:
Net income available to common shareholders		88,864					53,244					21,270					49,406					109,905
Notable items		357					154					(4,407		)			11,299					22,061
Merger-related expenses		31,530					54,011					81,619					36,728					47,025
Related income tax expense, net of tax benefits		(7,191		)			(11,207		)			(16,114		)			(10,071		)			(19,904		)
Adjusted net income available to common shareholders used in adjusted ROACE calculation	(e)	113,560					96,202					82,368					87,362					159,087
Other intangibles amortization		5,498					5,498					5,516					5,480					5,505
Related income tax expense		(1,240		)			(1,137		)			(1,151		)			(1,149		)			(1,284		)
Adjusted net income available to common shareholders used in adjusted ROATCE calculation	(f)	117,818					100,563					86,733					91,693					163,308
Average balances:
Average assets	(g)	47,361,520					49,539,600					49,716,116					46,985,426					46,119,514
Total equity		5,707,191					5,697,727					5,658,255					5,630,487					5,691,119
Non-controlling interest in subsidiaries		(19,995		)			(22,638		)			(28,122		)			(25,328		)			(23,683		)
Total TCF Financial Corporation shareholders' equity		5,687,196					5,675,089					5,630,133					5,605,159					5,667,436
Preferred stock		(169,302		)			(169,302		)			(169,302		)			(169,302		)			(169,302		)
Average total common shareholders' equity used in ROACE calculation	(h)	5,517,894					5,505,787					5,460,831					5,435,857					5,498,134
Goodwill, net		(1,313,046		)			(1,313,046		)			(1,313,046		)			(1,301,080		)			(1,266,166		)
Other intangibles, net		(149,140		)			(155,142		)			(160,841		)			(166,298		)			(211,294		)
Average tangible common shareholders' equity used in ROATCE calculation	(i)	$	4,055,708				$	4,037,599				$	3,986,944				$	3,968,479				$	4,020,674
ROAA(1)	(a)/(g)	0.78			%		0.46			%		0.21			%		0.46			%		0.99			%
Adjusted ROAA(1)	(b)/(g)	0.99					0.81					0.70					0.78					1.42
ROACE(1)	(c)/(h)	6.44					3.87					1.56					3.64					8.00
Adjusted ROACE(1)	(e)/(h)	8.23					6.99					6.03					6.43					11.57
ROATCE(1)	(d)/(i)	9.18					5.71					2.57					5.42					11.35
Adjusted ROATCE(1)	(f)/(i)	11.62					9.96					8.70					9.24					16.25

(1)

Annualized.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued
Computation of adjusted efficiency ratio, noninterest income and noninterest expense:
		Quarter Ended
		Dec. 31,					Sep. 30,					Jun. 30,					Mar. 31,					Dec. 31,
(Dollars in thousands)		2020					2020					2020					2020					2019
Noninterest expense	(a)	$	379,091				$	373,440				$	400,241				$	374,599				$	416,571
Merger-related expenses		(31,530		)			(54,011		)			(81,619		)			(36,728		)			(47,025		)
Write-down of company-owned vacant land parcels and branch exit costs		—					—					(551		)			—					(3,494		)
Expenses related to the sale of Legacy TCF auto finance portfolio		—					—					(901		)			(3,063		)			(4,670		)
Pension fair valuation adjustment		—					—					—					—					(6,341		)
Adjusted noninterest expense		347,561					319,429					317,170					334,808					355,041
Lease financing equipment depreciation		(18,610		)			(17,932		)			(18,212		)			(18,450		)			(18,629		)
Amortization of intangibles		(5,498		)			(5,498		)			(5,516		)			(5,480		)			(5,505		)
Historic tax credit amortization		(3,591		)			(1,758		)			(179		)			(1,521		)			(4,030		)
Adjusted noninterest expense, efficiency ratio	(b)	319,862					294,241					293,263					309,357					326,877
Net interest income		381,394					377,167					378,359					401,481					408,753
Noninterest income		127,236					118,810					133,054					136,963					158,052
Total revenue	(c)	508,630					495,977					511,413					538,444					566,805
Noninterest income		127,236					118,810					133,054					136,963					158,052
Gain on sales of branches		—					—					(14,717		)			—					—
Sale of Legacy TCF auto finance portfolio		—					—					—					—					8,194
Loan servicing rights impairment (recovery)		357					154					8,858					8,236					(638		)
Adjusted noninterest income		127,593					118,964					127,195					145,199					165,608
Net interest income		381,394					377,167					378,359					401,481					408,753
Net interest income FTE adjustment		3,228					2,844					3,032					2,983					2,896
Adjusted net interest income (FTE)		384,622					380,011					381,391					404,464					411,649
Lease financing equipment depreciation		(18,610		)			(17,932		)			(18,212		)			(18,450		)			(18,629		)
Adjusted total revenue, efficiency ratio	(d)	$	493,605				$	481,043				$	490,374				$	531,213				$	558,628
Efficiency ratio	(a)/(c)	74.53			%		75.29			%		78.26			%		69.57			%		73.49			%
Adjusted efficiency ratio	(b)/(d)	64.80					61.17					59.80					58.24					58.51

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

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

Computation of tangible common equity to tangible assets and tangible book value per common share:
		Dec. 31,					Sep. 30,					Jun. 30,					Mar. 31,					Dec. 31,
(Dollars in thousands, except per share data)		2020					2020					2020					2020					2019
Total equity		$	5,689,297				$	5,658,420				$	5,658,555				$	5,655,833				$	5,727,241
Non-controlling interest in subsidiaries		(18,484		)			(21,376		)			(23,300		)			(30,149		)			(20,226		)
Total TCF Financial Corporation shareholders' equity		5,670,813					5,637,044					5,635,255					5,625,684					5,707,015
Preferred stock		(169,302		)			(169,302		)			(169,302		)			(169,302		)			(169,302		)
Total common stockholders' equity	(a)	5,501,511					5,467,742					5,465,953					5,456,382					5,537,713
Goodwill, net		(1,313,046		)			(1,313,046		)			(1,313,046		)			(1,313,046		)			(1,299,878		)
Other intangibles, net		(146,377		)			(151,875		)			(157,373		)			(162,887		)			(168,368		)
Tangible common shareholders' equity	(b)	4,042,088					4,002,821					3,995,534					3,980,449					4,069,467
Total assets	(c)	47,802,487					47,565,789					50,062,460					48,594,383					46,651,553
Goodwill, net		(1,313,046		)			(1,313,046		)			(1,313,046		)			(1,313,046		)			(1,299,878		)
Other intangibles, net		(146,377		)			(151,875		)			(157,373		)			(162,887		)			(168,368		)
Tangible assets	(d)	$	46,343,064				$	46,100,868				$	48,592,041				$	47,118,450				$	45,183,307
Common stock shares outstanding	(e)	152,565,504					152,379,722					152,233,106					152,185,984					152,965,571
Common equity to assets	(a) / (c)	11.51			%		11.50			%		10.92			%		11.23			%		11.87			%
Tangible common equity to tangible assets	(b) / (d)	8.72					8.68					8.22					8.45					9.01
Book value per common share	(a) / (e)	$	36.06				$	35.88				$	35.91				$	35.85				$	36.20
Tangible book value per common share	(b) / (e)	26.49					26.27					26.25					26.16					26.60

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

Click here to subscribe to news release email alerts for TCF Financial Corporation.

Source: TCF Financial Corporation

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