TCF Reports 58th Consecutive Quarter of Net Income - Earns $17.5 Million

THIRD QUARTER HIGHLIGHTS

Diluted earnings per common share was 14 cents

Net income of $17.5 million

Net interest margin of 3.92 percent

Average loans and leases increased by $995 million, or 7.7 percent

Average deposits increased by $1.6 billion, or 16.1 percent

Announced quarterly cash dividend of five cents per common share, payable November 30, 2009

Press Release
Source: TCF Financial Corporation
On 8:30 am EDT, Wednesday October 21, 2009

WAYZATA, Minn.--(BUSINESS WIRE)--TCF Financial Corporation (NYSE:TCB - News):


Earnings Summary				Table 1
($ in thousands, except per-share data)										Percent Change
	3Q 2009			2Q 2009			3Q 2008			3Q09 vs 2Q09		3Q09 vs 3Q08		YTD 2009			YTD 2008			Percent Change
Net income	$	17,451		$	23,543		$	30,126		(25.9	)	(42.1	)	$	67,641		$	101,254		(33.2	)
Diluted earnings per common share		.14			.08			.24		75.0		(41.7	)		.39			.81		(51.9	)

Financial Ratios ⁽¹⁾
Return on average assets		.39	%		.53	%		.73	%						.52	%		.83	%
Return on average common equity⁽²⁾		6.03			7.82			11.11							7.13			12.29
Net interest margin		3.92			3.80			3.97							3.80			3.94
Net charge-offs as a percentage of average loans and leases		1.52			1.43			.82							1.33			.70

(1) Annualized
(2) Excludes non-cash deemed preferred stock dividend of $12,025 in the second quarter and year-to-date of 2009. Including this amount, the return on average common equity was 3.61% and 5.73% for the second quarter and year-to-date of 2009, respectively.

Symbol	Price	Change
TCB	13.05	-0.06

TCF Financial Corporation (“TCF”) (NYSE:TCB - News) today reported third quarter 2009 diluted earnings per common share of 14 cents, compared with 24 cents in the third quarter of 2008 and 8 cents for the second quarter of 2009. Net income for the third quarter of 2009 was $17.5 million, compared with $30.1 million in the third quarter of 2008 and $23.5 million in the second quarter of 2009.

Diluted earnings per common share for the first nine months of 2009 was 39 cents, compared with 81 cents for the same 2008 period. Net income for the first nine months of 2009 was $67.6 million, compared with $101.3 million for the same 2008 period.

TCF declared a quarterly cash dividend of five cents per common share payable on November 30, 2009 to stockholders of record at the close of business on October 30, 2009.

Chairman’s Statement

“The third quarter continued to pose many challenges for TCF and other banks as the effects of high unemployment and the resulting increase in consumer defaults and softness in spending continue to pressure earnings,” said William A. Cooper, TCF Chairman and CEO. “While credit losses continue to dampen our results, fee income and net interest margin remained strong. In addition, our focus on growing low cost deposits and expanding our specialty finance businesses position TCF for improved earnings as the economy improves.”


Total Revenue										Table 2
										Percent Change
($ in thousands)	3Q 2009			2Q 2009			3Q 2008			3Q09 vs 2Q09		3Q09 vs 3Q08		YTD 2009			YTD 2008			Percent Change
Net interest income	$	161,489		$	156,463		$	152,165		3.2	%	6.1	%	$	463,365		$	446,556		3.8	%
Fees and other revenue:
Fees and service charges		77,433			77,536			71,783		(.1	)	7.9			212,033			203,291		4.3
Card revenue		26,393			26,604			26,240		(.8	)	.6			77,957			77,839		.2
ATM revenue		7,861			7,973			8,720		(1.4	)	(9.9	)		23,432			24,957		(6.1	)
Total banking fees		111,687			112,113			106,743		(.4	)	4.6			313,422			306,087		2.4
Leasing and equipment finance		15,173			16,881			13,006		(10.1	)	16.7			44,705			39,190		14.1
Other		1,197			820			3,296		46.0		(63.7	)		2,475			11,977		(79.3	)
Total fees and other revenue		128,057			129,814			123,045		(1.4	)	4.1			360,602			357,254		.9
Gains on securities		-			10,556			498		N.M.		N.M.			22,104			7,899		179.8
Visa share redemption		-			-			-		-		-			-			8,308		N.M.
Total non-interest income		128,057			140,370			123,543		(8.8	)	3.7			382,706			373,461		2.5
Total revenue	$	289,546		$	296,833		$	275,708		(2.5	)	5.0		$	846,071		$	820,017		3.2

Net interest margin⁽¹⁾		3.92	%		3.80	%		3.97	%						3.80	%		3.94	%
Fees and other revenue as a % of total revenue		44.23			43.73			44.63							42.62			43.57

N.M. = Not Meaningful
(1) Annualized

Net Interest Income

The increase in net interest income from the third quarter of 2008 was primarily due to an increase in average loans and leases, partially offset by a decrease in net interest margin. The increase in net interest income from the second quarter of 2009 was primarily due to an increase in average loans and leases and an increase in net interest margin.
The decrease in net interest margin from the third quarter of 2008 was primarily due to declines in yields on interest-earning assets, resulting from lower market interest rates, the effect of higher balances of non-accrual loans and leases, loan modifications and investments in lower yielding agency debentures, partially offset by declines in rates paid on average deposits.
The increase in net interest margin from the second quarter of 2009 was primarily due to reductions in rates paid on deposits, partially offset by the effects of higher balances of non-accrual loans and leases, loan modifications and lower average yields on the leasing and equipment finance portfolio.

Non-interest Income

Banking fees and service charges were $77.4 million, up $5.7 million, or 7.9 percent, from the third quarter of 2008 and essentially flat with the second quarter of 2009. The increase from the third quarter of 2008 was primarily due to an increased number of checking accounts and related fee income.
Card revenues totaled $26.4 million for the third quarter of 2009, essentially flat with the third quarter of 2008 and the second quarter of 2009. Growth in active accounts was offset by fewer transactions and lower average transaction amounts.
Leasing and equipment finance revenues were $15.2 million for the third quarter of 2009, up $2.2 million, or 16.7 percent, from the third quarter of 2008 and down $1.7 million, or 10.1 percent, from the second quarter of 2009. The increase in leasing revenue from the third quarter of 2008 and decrease from the second quarter of 2009 was primarily due to sales-type lease revenue which varies from period to period based on customer-driven events.
Other non-interest income was $1.2 million for the third quarter of 2009, down $2.1 million, or 63.7 percent, from the third quarter of 2008, and up $377 thousand, or 46 percent, from the second quarter of 2009. The decrease in other non-interest income from the third quarter of 2008 was primarily due to TCF no longer selling investment and insurance products in the branches, partially offset by servicing fees generated by TCF Inventory Finance.

Loans and Leases

Average Loans and Leases							Table 3
							Percent Change
($ in thousands)	3Q 2009		2Q 2009		3Q 2008		3Q09 vs 2Q09		3Q09 vs 3Q08		YTD 2009		YTD 2008		Percent Change
Loans and leases:
Consumer real estate
First mortgage lien	$	4,939,529	$	4,938,187	$	4,874,190	-	%	1.3	%	$	4,924,902	$	4,825,185	2.1	%
Junior lien		2,329,096		2,355,913		2,434,392	(1.1	)	(4.3	)		2,361,140		2,407,350	(1.9	)
Total consumer real estate		7,268,625		7,294,100		7,308,582	(.3	)	(.5	)		7,286,042		7,232,535	.7
Consumer other		35,015		36,255		45,939	(3.4	)	(23.8	)		36,920		45,481	(18.8	)
Total consumer		7,303,640		7,330,355		7,354,521	(.4	)	(.7	)		7,322,962		7,278,016	.6
Commercial real estate		3,193,686		3,110,030		2,776,830	2.7		15.0			3,101,459		2,666,948	16.3
Commercial business		477,041		483,493		544,826	(1.3	)	(12.4	)		486,680		539,348	(9.8	)
Total commercial		3,670,727		3,593,523		3,321,656	2.1		10.5			3,588,139		3,206,296	11.9
Leasing and equipment finance		2,811,165		2,809,787		2,300,429	-		22.2			2,751,935		2,223,811	23.7
Inventory finance		185,914		118,317		-	57.1		N.M.			111,479		-	N.M.
Total Loans and Leases	$	13,971,446	$	13,851,982	$	12,976,606	.9		7.7		$	13,774,515	$	12,708,123	8.4

N.M. = Not meaningful

Average consumer real estate loan balances were relatively flat from the third quarter of 2008 and the second quarter of 2009 reflecting less demand for home equity financing due in part to declines in home values and very competitive pricing from government sponsored and supported programs.
At September 30, 2009, 68 percent of the consumer real estate loan portfolio was secured by first liens.
Average commercial loan balances increased $349.1 million, or 10.5 percent, from the third quarter of 2008 and increased $77.2 million, or 2.1 percent, from the second quarter of 2009 as a reduction in competitive alternatives has increased the opportunity to attract high quality customers.
Average leasing and equipment finance balances increased $510.7 million, or 22.2 percent, from the third quarter of 2008 and were relatively flat when compared to the second quarter of 2009. At the end of September 2009, TCF’s leasing subsidiary, Winthrop Resources Corporation, acquired Fidelity National Capital, Inc., with over $200 million in direct financing leases. Additionally, this acquisition included $57.9 million in operating leases which are recorded as other assets. Portfolio purchases and company acquisitions in the first and third quarters of 2009 contributed $198.2 million of the increase in average balances from the third quarter of 2008.
Average inventory finance loans increased $67.6 million, or 57.1 percent, to $185.9 million from the second quarter of 2009.
In the third quarter of 2009, TCF announced the creation of Red Iron Acceptance, LLC, a joint venture with The Toro Company, which will provide U.S. Toro distributors and dealers with floor plan and open account financing. In October 2009, this joint venture purchased $72.7 million of inventory finance loans from The Toro Company. Red Iron Acceptance, LLC is consolidated with the operating results of TCF.

Securities Available for Sale


Average Securities Available for Sale							Table 4
							Yield							Yield
($ in thousands)	3Q 2009		2Q 2009		3Q 2008		3Q09		3Q08		YTD 2009		YTD 2008	YTD 2009		YTD 2008
U.S. Government sponsored entities:
Mortgage-backed securities	$	1,432,670	$	1,656,767	$	2,157,047	4.80	%	5.29	%	$	1,695,377	$2,146,185	4.97	%	5.30	%
Debentures		600,098		527,562		-	2.19		-			381,022	-	2.16		-
Other securities		489		498		3,840	4.91		3.64			497	15,938	5.37		3.48
Total	$	2,033,257	$	2,184,827	$	2,160,887	4.03		5.29		$	2,076,896	$ 2,162,123	4.45		5.29

TCF purchased $5 million of mortgage-backed securities in the third quarter of 2009, compared with $204 million of purchases and $381 million of sales in the second quarter of 2009.
In late March and April of 2009, TCF purchased $600.1 million of Fannie Mae and Freddie Mac callable debentures with maturities of three years or less resulting in a reduction in lower yielding interest-bearing deposits at the Federal Reserve.

Deposits


Average Deposits							Table 5
										Percent Change
($ in thousands)	3Q 2009			2Q 2009			3Q 2008			3Q09 vs 2Q09		3Q09 vs 3Q08		YTD 2009			YTD 2008			Percent Change

Non-interest bearing deposits:
Retail	$	1,380,591		$	1,446,215		$	1,409,855		(4.5	)%	(2.1	)%	$	1,418,244		$	1,429,752		(.8	)%
Small business		591,451			571,676			597,894		3.5		(1.1	)		575,558			580,248		(.8	)
Commercial		277,135			260,079			253,900		6.6		9.2			255,066			231,184		10.3
Subtotal		2,249,177			2,277,970			2,261,649		(1.3	)	(.6	)		2,248,868			2,241,184		.3
Interest-bearing deposits:
Checking		1,800,583			1,792,493			1,837,540		.5		(2.0	)		1,780,380			1,855,963		(4.1	)
Savings		5,071,509			4,823,897			2,791,559		5.1		81.7			4,569,882			2,800,120		63.2
Money market		723,098			690,201			629,905		4.8		14.8			686,830			609,629		12.7
Subtotal		7,595,190			7,306,591			5,259,004		3.9		44.4			7,037,092			5,265,712		33.6
Certificates		1,757,884			2,087,490			2,469,327		(15.8	)	(28.8	)		2,100,342			2,480,262		(15.3	)
Subtotal		9,353,074			9,394,081			7,728,331		(.4	)	21.0			9,137,434			7,745,974		18.0
Total deposits	$	11,602,251		$	11,672,051		$	9,989,980		(.6	)	16.1		$	11,386,302		$	9,987,158		14.0

Average interest rate on deposits		.94	%		1.15	%		1.34	%						1.19	%		1.60	%

Total average deposits increased $1.6 billion from the third quarter of 2008 and remained relatively flat compared to the second quarter of 2009. The increase from the third quarter of 2008 was primarily due to strong growth in savings deposits due to several initiatives involving products, pricing and marketing efforts, partially offset by declines in certificates of deposits resulting from reduced interest rates. Average deposit balances remained relatively flat from the second quarter of 2009 primarily due to increases in savings deposits offset by a decrease in certificates of deposit.
The average rate paid on deposits was .94 percent in the third quarter of 2009, down 40 basis points from the third quarter of 2008 and down 21 basis points from the second quarter of 2009 due to reductions in interest rates paid on certain deposit products and mix changes due to management’s strategy to reduce balances of certificates of deposit. The weighted average interest rate on total deposits was .90 percent at September 30, 2009.
The number of new checking accounts opened in the third quarter of 2009 increased 12.6 percent compared with the third quarter of 2008 and increased 8.9 percent from the second quarter of 2009.

Non-interest Expense


Non-interest Expense							Table 6
							Percent Change
($ in thousands)	3Q 2009		2Q 2009		3Q 2008		3Q09 vs 2Q09		3Q09 vs 3Q08		YTD 2009		YTD 2008		Percent Change
Compensation and employee benefits
Compensation and employee benefits	$	90,680	$	90,752	$	84,895	(.1	)%	6.8	%	$	267,622	$	257,880	3.8	%
Occupancy and equipment		31,619		31,527		31,832	.3		(.7	)		95,193		95,450	(.3	)
Deposit account premiums		7,472		7,287		7,292	2.5		2.5			21,335		11,229	90.0
Advertising and marketing		4,766		4,134		5,017	15.3		(5.0	)		13,345		14,507	(8.0	)
Operating lease depreciation		3,734		3,860		4,215	(3.3	)	(11.4	)		11,618		13,189	(11.9	)
FDIC premiums and assessments		5,085		13,303		426	(61.8	)	N.M.			22,183		1,284	N.M.
Foreclosed real estate and repossessed assets		8,038		6,125		4,883	31.2		64.6			18,454		12,390	48.9
Other		38,873		39,558		39,028	(1.7	)	(.4	)		111,271		108,664	2.4
Total non-interest expense	$	190,267	$	196,546	$	177,588	(3.2	)	7.1		$	561,021	$	514,593	9.0

N.M. = Not meaningful

Compensation and benefits expenses increased $5.8 million, or 6.8 percent, from the third quarter of 2008 and were relatively flat compared to the second quarter of 2009. The increase from the third quarter of 2008 was primarily due to increases in leasing and equipment finance and inventory finance compensation costs as a result of expansion and growth, and increased employee medical plan expenses.
FDIC premiums and assessments were up $4.7 million from the third quarter of 2008 and down $8.2 million from the second quarter of 2009. The increase from the third quarter of 2008 was primarily due to higher insurance rates and deposit growth. The decrease from the second quarter of 2009 was primarily attributable to a FDIC special assessment of $8.2 million in June of 2009.
Foreclosed real estate and repossessed asset expenses increased $3.2 million from the third quarter of 2008 and increased $1.9 million from the second quarter of 2009. The increases from both periods were primarily due to increased numbers of foreclosed commercial and consumer real estate properties, adjustments to property valuations and losses on sales of properties.

Credit Quality


Credit Quality Summary							Table 7
										Percent Change
($ in thousands)	3Q 2009			2Q 2009			3Q 2008			3Q09 vs 2Q09		3Q09 vs 3Q08		YTD 2009			YTD 2008			% Chg
Allowance for Loan and Lease Losses
Balance at beginning of period	$	193,445		$	181,216		$	133,637		6.7	%	44.8	%	$	172,442		$	80,942		113.0	%
Charge-offs		(57,214	)		(53,462	)		(29,976	)	7.0		90.9			(149,557	)		(77,700	)	92.5
Recoveries		3,957			3,800			3,212		4.1		23.2			11,700			10,741		8.9
Net charge-offs		(53,257	)		(49,662	)		(26,764	)	7.2		99.0			(137,857	)		(66,959	)	105.9
Provision for credit losses		75,544			61,891			52,105		22.1		45.0			181,147			144,995		24.9
Balance at end of period	$	215,732		$	193,445		$	158,978		11.5		35.7		$	215,732		$	158,978		35.7

Allowance as a percentage of period end loans and leases		1.51	%		1.39	%		1.21	%						1.51	%		1.21	%
Ratio of allowance to net charge-offs⁽¹⁾	1.0X			1.0X			1.5X							1.2X			1.8X

Credit Loss Reserves
Allowance for loan and lease losses	$	215,732		$	193,445		$	158,978		11.5		35.7
Reserves netted against portfolio asset balances		12,951			13,828			-		(6.3	)	N.M.
Reserves for unfunded commitments		2,871			2,655			1,678		8.1		71.1
Total credit loss reserves	$	231,554		$	209,928		$	160,656		10.3		44.1

Total credit loss reserves as a % of period end loans and leases		1.61	%		1.50	%		1.23	%
Ratio of total credit loss reserves to net charge-offs^{(1) (2)}	1.0X			1.0X			1.5X

Non-accrual loans and leases	$	268,834		$	239,917		$	145,890		12.1		84.3
Real estate owned		94,167			96,862			54,179		(2.8	)	73.8
Total non-performing assets	$	363,001		$	336,779		$	200,069		7.8		81.4

Non-performing assets as a percentage of net loans and leases		2.57	%		2.45	%		1.55	%

Accruing consumer troubled debt restructurings	$	159,881		$	51,483		$	23,844		N.M.		N.M.

N.M. = Not Meaningful
(1) Annualized
(2) Includes $1.9 million in write-offs related to credit reserves netted against portfolio asset balances in the third quarter of 2009

At September 30, 2009, TCF’s:

Allowance for loan and lease losses was $215.7 million, or 1.51 percent of loans and leases, up from $193.4 million, or 1.39 percent of loans and leases at June 30, 2009.
Over-60-day delinquency rate was .81 percent, up from .72 percent at June 30, 2009, primarily due to increases in consumer real estate.
Non-accrual loans and leases increased $28.9 million, or 12.1 percent, from June 30, 2009 primarily due to increases in consumer and commercial real estate non-accrual loans.
TCF completed $215.2 million and $590.7 million of consumer real estate loan modifications in the third quarter and first nine months of 2009, respectively. Of these modifications, $112.3 million in the third quarter and $144.7 million in the first nine months were considered troubled debt restructurings which continue to accrue interest.
TCF has several programs designed to help consumer real estate customers avoid home foreclosures by extending payment dates or reducing interest rates. Loan modification programs for consumer real estate borrowers implemented in the third quarter of 2009 have resulted in a significant increase in restructured loans. Primarily these loans are classified as troubled debt restructurings and generally accrue interest although at lower rates than the original loan. TCF expects the balance of consumer real estate troubled debt restructurings to increase into 2010.

For the quarter ended September 30, 2009, TCF’s:

Provision for credit losses was $75.5 million, up from $52.1 million in the third quarter of 2008 and up from $61.9 million in the second quarter of 2009. The increase from the third quarter of 2008 was primarily due to increased consumer real estate, commercial and leasing net charge-offs and reserves for certain commercial loans and restructured consumer real estate loans. The increase from the second quarter of 2009 was primarily due to increased leasing and equipment finance and consumer real estate net charge-offs and reserves for restructured consumer real estate loans, partially offset by decreased commercial real estate net charge-offs.
Net loan and lease charge-offs were $53.3 million, or 1.52 percent annualized, of average loans and leases, up from $49.7 million, or 1.43 percent annualized, of average loans and leases, from the second quarter of 2009 primarily due to increases in consumer real estate and leasing and equipment finance net charge-offs, partially offset by decreased commercial real estate net charge-offs.

Income Taxes

Income tax expense was 27.4 percent of pre-tax income for the third quarter of 2009, compared with 34.5 percent for the comparable 2008 period and 38.7 percent for the second quarter of 2009. The third quarter of 2009 income tax expense included a $3 million decrease in income tax expense related to favorable developments in uncertain tax positions, partially offset by a slight increase in the effective income tax rate. Excluding the decrease in income tax expense related to favorable developments in uncertain tax positions and first six months impact of the increase in the effective income tax rate, the effective income tax rate for the third quarter of 2009 was 38.8 percent.

Capital and Liquidity


Capital Information									Table 8
At period end
($ in thousands, except per-share data)		3Q 2009				4Q 2008
		3Q 2009				4Q 2008
Total TCF stockholders’ equity	$	1,176,235				$	1,493,776
Total equity	$	1,179,839				$	1,493,776
Total equity to total assets		6.65	%				8.92	%
Book value per common share	$	9.14				$	8.99
Tangible realized common equity to tangible assets⁽¹⁾		5.81	%				6.01	%

Risk-based capital
Tier 1	$	1,142,351		8.57	%	$	1,461,973		11.79	%
Total		1,491,365		11.19			1,817,225		14.65
Total stated “well-capitalized” requirement		1,332,440		10.00			1,240,147		10.00
Excess over stated “well-capitalized” requirement		158,925		1.19			577,078		4.65

(1) Excludes the impact of preferred stock, goodwill, customer based intangibles and accumulated other comprehensive income (loss) (see “Reconciliation of GAAP to Non-GAAP Measures” table)

TCF’s total risk-based capital at September 30, 2009 of $1.5 billion, or 11.19 percent of risk-weighted assets, was $158.9 million in excess of the stated “well-capitalized” requirement.
On October 19, 2009, the Board of Directors of TCF declared a regular quarterly cash dividend of five cents per common share payable on November 30, 2009 to stockholders of record at the close of business on October 30, 2009.
At September 30, 2009, TCF had $58.9 million on deposit with the Federal Reserve, which is included in cash and due from banks, compared with $147.9 million at June 30, 2009.
At September 30, 2009, TCF had $2.1 billion in unused, secured borrowing capacity at the FHLB of Des Moines and $818 million in unused, secured borrowing capacity at the Federal Reserve Discount Window. Also, TCF had $1.2 billion of active, unsecured federal funds purchased lines which are not contractually committed.

Website Information

A live webcast of TCF’s conference call to discuss third quarter earnings will be hosted at TCF’s website, www.tcfbank.com, on October 21, 2009 at 10:00 a.m. CDT. Additionally, the webcast is available for replay at TCF’s website after the conference call. The website also includes free access to company news releases, TCF’s annual report, quarterly reports, investor presentations and SEC filings.

TCF is a Wayzata, Minnesota-based national financial holding company with $17.7 billion in total assets. TCF has 443 banking offices in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF also conducts commercial leasing and equipment finance business in all 50 states and commercial inventory finance business in the U.S. and Canada. For more information about TCF, please visit www.tcfbank.com.

Forward-Looking Information

This earnings release and other reports issued by the Company, including reports filed with the SEC, may contain “forward-looking” statements that deal with future results, plans or performance. In addition, TCF’s management may make such statements orally to the media, or to securities analysts, investors or others. Forward-looking statements deal with matters that do not relate strictly to historical facts. TCF’s future results may differ materially from historical performance and forward-looking statements about TCF’s expected financial results or other plans and are subject to a number of risks and uncertainties. These include, but are not limited to, continued or deepening deterioration in general economic and banking industry conditions; continued increases in unemployment in TCF’s primary banking markets; limitations on TCF’s ability to pay dividends or to increase dividends in the future because of financial performance deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to deteriorating conditions in the banking industry and the economic impact on banks of the Emergency Economic Stabilization Act, as amended (“EESA”) or other related legislative and regulatory developments; the impact of the Obama Administration’s financial regulatory reform proposals including possible additional capital, consumer protection and supervisory requirements which could include the creation of a new consumer protection agency and limits on Federal preemption for state laws that could be applied to national banks; the imposition of requirements with an adverse financial impact relating to TCF’s lending, loan collection and other business activities as a result of the EESA, or other legislative or regulatory developments such as mortgage foreclosure moratorium laws; possible regulatory or legislative changes, including restrictions on deposit fees and reduction of interchange revenue from debit card transactions and adverse economic, business and competitive developments such as shrinking interest margins, deposit outflows, an inability to increase the number of deposit accounts and the possibility that deposit account losses (fraudulent checks, etc.) may increase; impact of legislative, regulatory or other changes affecting customer account charges and fee income; legislative changes to bankruptcy laws which would result in the loss of all or part of TCF’s security interest due to collateral value declines (so-called “cramdown” provisions); reduced demand for financial services and loan and lease products; adverse developments affecting TCF’s supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches; changes in accounting standards or interpretations of existing standards; monetary, fiscal or tax policies of the federal or state governments, including adoption of state legislation that would increase state taxes; adverse state or Federal tax assessments or findings in tax audits; adverse regulatory examinations and resulting enforcement actions, including those provided for under the Bank Secrecy Act; changes in credit and other risks posed by TCF’s loan, lease, investment, and securities available for sale portfolios, including continuing declines in commercial or residential real estate values or changes in allowance for loan and lease losses methodology dictated by new market conditions or regulatory requirements; lack of or inadequate insurance coverage for claims against TCF; technological, computer related or operational difficulties or loss or theft of information; adverse changes in securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund its operations; results of litigation, including class action litigation concerning TCF’s lending or deposit activities or fees or charges, or employment practices, and possible increases in indemnification obligations for certain litigation against Visa U.S.A. (“covered litigation”) and potential reductions in card revenues resulting from covered litigation or other litigation against Visa; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity; or other significant uncertainties. Investors should consult TCF’s Annual Report on Form 10-K, and Forms 10-Q and 8-K for additional important information about the Company.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

Three Months Ended

September 30,

Change

2009

2008

Interest income:

Loans and leases

217,307

210,651

6,656

3.2

Securities available for sale

20,474

28,577

(8,103

)

(28.4

)

Education loans held for sale

123

(123

)

N.M.

Investments and other

1,217

1,644

(427

)

(26.0

)

Total interest income

238,998

240,995

(1,997

)

(.8

)

Interest expense:

Deposits

27,512

33,730

(6,218

)

(18.4

)

Borrowings

49,997

55,100

(5,103

)

(9.3

)

Total interest expense

77,509

88,830

(11,321

)

(12.7

)

Net interest income

161,489

152,165

9,324

6.1

Provision for credit losses

75,544

52,105

23,439

45.0

Net interest income after provision for credit losses

85,945

100,060

(14,115

)

(14.1

)

Non-interest income:

Fees and service charges

77,433

71,783

5,650

7.9

Card revenue

26,393

26,240

153

ATM revenue

7,861

8,720

(859

)

(9.9

)

Subtotal

111,687

106,743

4,944

4.6

Leasing and equipment finance

15,173

13,006

2,167

16.7

Other

1,197

3,296

(2,099

)

(63.7

)

Fees and other revenue

128,057

123,045

5,012

4.1

Gains on securities

498

(498

)

N.M.

Total non-interest income

128,057

123,543

4,514

3.7

Non-interest expense:

Compensation and employee benefits

90,680

84,895

5,785

6.8

Occupancy and equipment

31,619

31,832

(213

)

(.7

)

Deposit account premiums

7,472

7,292

180

2.5

Advertising and promotions

4,766

5,017

(251

)

(5.0

)

FDIC premiums and assessments

5,085

426

4,659

N.M.

Foreclosed real estate and repossessed assets

8,038

4,883

3,155

64.6

Operating lease depreciation

3,734

4,215

(481

)

(11.4

)

Other

38,873

39,028

(155

)

(.4

)

Total non-interest expense

190,267

177,588

12,679

7.1

Pretax income

23,735

46,015

(22,280

)

(48.4

)

Income tax expense

6,491

15,889

(9,398

)

(59.1

)

Income after income tax expense

17,244

30,126

(12,882

)

(42.8

)

Income (loss) attributable to non-controlling interest

(207

)

(207

)

N.M.

Net income

17,451

30,126

(12,675

)

(42.1

)

Preferred stock dividends

Net income available to common stockholders

17,451

30,126

(12,675

)

(42.1

)

Net income per common share:

Basic

.14

.24

(.10

)

(41.7

)

Diluted

.14

.24

(.10

)

(41.7

)

Dividends declared per common share

.05

.25

(.20

)

(80.0

)

Average common and common equivalent shares outstanding (in thousands):

Basic

126,811

124,978

1,833

1.5

Diluted

126,833

124,986

1,847

1.5

N.M. Not meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

Nine Months Ended

September 30,

Change

2009

2008

Interest income:

Loans and leases

642,084

630,835

11,249

1.8

Securities available for sale

69,392

85,714

(16,322

)

(19.0

)

Education loans held for sale

5,331

(5,331

)

N.M.

Investments and other

3,210

4,713

(1,503

)

(31.9

)

Total interest income

714,686

726,593

(11,907

)

(1.6

)

Interest expense:

Deposits

100,941

119,412

(18,471

)

(15.5

)

Borrowings

150,380

160,625

(10,245

)

(6.4

)

Total interest expense

251,321

280,037

(28,716

)

(10.3

)

Net interest income

463,365

446,556

16,809

3.8

Provision for credit losses

181,147

144,995

36,152

24.9

Net interest income after provision for credit losses

282,218

301,561

(19,343

)

(6.4

)

Non-interest income:

Fees and service charges

212,033

203,291

8,742

4.3

Card revenue

77,957

77,839

118

ATM revenue

23,432

24,957

(1,525

)

(6.1

)

Subtotal

313,422

306,087

7,335

2.4

Leasing and equipment finance

44,705

39,190

5,515

14.1

Other

2,475

20,285

(17,810

)

(87.8

)

Fees and other revenue

360,602

365,562

(4,960

)

(1.4

)

Gains on securities

22,104

7,899

14,205

179.8

Total non-interest income

382,706

373,461

9,245

2.5

Non-interest expense:

Compensation and employee benefits

267,622

257,880

9,742

3.8

Occupancy and equipment

95,193

95,450

(257

)

(.3

)

Deposit account premiums

21,335

11,229

10,106

90.0

Advertising and promotions

13,345

14,507

(1,162

)

(8.0

)

FDIC premiums and assessments

22,183

1,284

20,899

N.M.

Foreclosed real estate and repossessed assets

18,454

12,390

6,064

48.9

Operating lease depreciation

11,618

13,189

(1,571

)

(11.9

)

Other

111,271

108,664

2,607

2.4

Total non-interest expense

561,021

514,593

46,428

9.0

Pretax income

103,903

160,429

(56,526

)

(35.2

)

Income tax expense

36,469

59,175

(22,706

)

(38.4

)

Income after income tax expense

67,434

101,254

(33,820

)

(33.4

)

Income (loss) attributable to non-controlling interest

(207

)

(207

)

N.M.

Net income

67,641

101,254

(33,613

)

(33.2

)

Preferred stock dividends

18,403

N.M.

Net income available to common stockholders

49,238

101,254

(52,016

)

(51.4

)

Net income per common share:

Basic

.39

.81

(.42

)

(51.9

)

Diluted

.39

.81

(.42

)

(51.9

)

Dividends declared per common share

.35

.75

(.40

)

(53.3

)

Average common and common equivalent shares outstanding (in thousands):

Basic

126,403

124,807

1,596

1.3

Diluted

126,403

124,825

1,578

1.3

N.M. Not meaningful.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

% Change from

September 30,

December 31,

September 30,

December 31,

September 30,

2009

2008

ASSETS

Cash and due from banks

329,663

342,380

297,701

(3.7

)

10.7

Investments

155,627

155,725

167,115

(.1

)

(6.9

)

U.S. Government sponsored entities:

Mortgage-backed securities

1,454,833

1,965,554

2,099,358

(26.0

)

(30.7

)

Debentures

604,876

N.M.

Other securities

518

550

3,398

(5.8

)

(84.8

)

Total securities available for sale

2,060,227

1,966,104

2,102,756

4.8

(2.0

)

Education loans held for sale

757

3,569

N.M.

Loans and leases:

Consumer real estate and other

7,335,061

7,363,583

7,368,736

(.4

)

(.5

)

Commercial real estate

3,240,846

2,984,156

2,852,754

8.6

13.6

Commercial business

466,991

506,887

549,337

(7.9

)

(15.0

)

Leasing and equipment finance

3,061,559

2,486,082

2,330,841

23.1

31.3

Inventory finance

224,807

4,425

N.M.

Total loans and leases

14,329,264

13,345,133

13,101,668

7.4

9.4

Allowance for loan and lease losses

(215,732

)

(172,442

)

(158,978

)

(25.1

)

(35.7

)

Net loans and leases

14,113,532

13,172,691

12,942,690

7.1

9.0

Premises and equipment, net

449,264

447,826

441,904

1.7

Goodwill

152,599

Other assets

482,097

502,275

402,261

(4.0

)

19.8

Total assets

17,743,009

16,740,357

16,510,595

6.0

7.5

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Checking

4,098,643

3,969,768

4,089,044

3.2

Savings

5,144,661

3,057,623

2,717,635

68.3

89.3

Money market

730,046

619,678

646,655

17.8

12.9

Subtotal

9,973,350

7,647,069

7,453,334

30.4

33.8

Certificates of deposit

1,652,661

2,596,283

2,396,903

(36.3

)

(31.1

)

Total deposits

11,626,011

10,243,352

9,850,237

13.5

18.0

Short-term borrowings

21,397

226,861

603,233

(90.6

)

(96.5

)

Long-term borrowings

4,524,955

4,433,913

4,630,776

2.1

(2.3

)

Total borrowings

4,546,352

4,660,774

5,234,009

(2.5

)

(13.1

)

Accrued expenses and other liabilities

390,807

342,455

315,320

14.1

23.9

Total liabilities

16,563,170

15,246,581

15,399,566

8.6

7.6

Stockholders' equity:

Preferred stock, par value $.01 per share,
30,000,000 authorized; 0, 361,172 and 0 issued

348,437

N.M.

Common stock, par value $.01 per share,

280,000,000 shares authorized;130,373,208,

130,839,378 and 130,951,694 shares issued

1,304

1,308

(.3

)

(.3

)

Additional paid-in capital

304,190

330,474

329,897

(8.0

)

(7.8

)

Retained earnings, subject to certain restrictions

932,882

927,893

934,121

(.1

)

Accumulated other comprehensive income (loss)

805

(3,692

)

(21,555

)

N.M.

Treasury stock at cost, 1,623,705, 3,413,855 and 3,761,925 shares, and other

(62,946

)

(110,644

)

(132,742

)

(43.1

)

(52.6

)

Total TCF stockholders' equity

1,176,235

1,493,776

1,111,029

(21.3

)

5.9

Non-controlling interest in subsidiaries

3,604

N.M.

Total equity

1,179,839

1,493,776

1,111,029

(21.0

)

6.2

Total liabilities and stockholders' equity

17,743,009

16,740,357

16,510,595

6.0

7.5

N.M. Not meaningful.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

Allowance for loan and lease losses

Allowance as % of Portfolio

At September 30, 2009

At June 30, 2009

At September 30, 2008

Change from

Allowance

Jun. 30,

Sep. 30,

Balance

% of Portfolio

Balance

% of Portfolio

Balance

% of Portfolio

2009

2008

Consumer real estate

136,783

1.88

114,283

1.57

84,693

1.16

bps

Consumer other

2,945

5.15

3,026

5.00

2,938

4.18

Total consumer real estate and other

139,728

1.90

117,309

1.60

87,631

1.19

Commercial real estate

38,335

1.18

36,208

1.15

39,636

1.39

(21

)

Commercial business

7,706

1.65

10,354

2.13

12,575

2.29

(48

)

(64

)

Leasing and equipment finance

29,130

.95

28,921

1.02

19,136

.82

)

Inventory finance

833

.37

653

.42

)

Total allowance for loan and lease losses

215,732

1.51

193,445

1.39

158,978

1.21

Credit Loss Reserves

At September 30, 2009

At June 30, 2009

At September 30, 2008

Change from

Credit loss reserve

Jun. 30,

Sep. 30,

Balance

% of Portfolio

Balance

% of Portfolio

Balance

% of Portfolio

2009

2008

Allowance for loan and lease losses

215,732

1.51

193,445

1.39

158,978

1.21

bps

Reserves netted against portfolio asset balances

12,951

N.M.

13,828

N.M.

Reserves for unfunded commitments

2,871

N.M.

2,655

N.M.

1,678

N.M.

Total credit loss reserves

231,554

1.61

209,928

1.50

160,656

1.23

Net Charge-Offs

Quarter Ended

Change from

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2009

2008

2009

2008

Consumer real estate

First mortgage lien

15,694

11,795

10,477

10,198

8,841

3,899

6,853

Junior lien

14,201

11,201

11,849

10,664

9,469

3,000

4,732

Total consumer real estate

29,895

22,996

22,326

20,862

18,310

6,899

11,585

Consumer other

2,587

1,661

1,290

3,303

3,282

926

(695

)

Total consumer real estate and other

32,482

24,657

23,616

24,165

21,592

7,825

10,890

Commercial real estate

6,758

19,531

3,640

2,958

2,694

(12,773

)

4,064

Commercial business

4,514

(55

)

2,981

2,631

4,569

4,449

Leasing and equipment finance

9,409

5,529

4,701

3,832

2,413

3,880

6,996

Inventory finance

Total

53,257

49,662

34,938

33,586

26,764

3,595

26,493

Net Charge-Offs as a Percentage of Average Loans and Leases

Quarter Ended ⁽¹⁾

Change from

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2009

2008

2009

2008

Consumer real estate

First mortgage lien

1.27

.96

.86

.84

.73

bps

Junior lien

2.44

1.90

1.98

1.76

1.56

Total consumer real estate

1.65

1.26

1.22

1.14

1.00

Consumer other

N.M.

Total consumer real estate and other

1.78

1.35

1.29

1.32

1.17

Commercial real estate

.85

2.51

.49

.41

.39

(166

)

Commercial business

3.78

(.05

)

2.39

2.01

.05

383

373

Leasing and equipment finance

1.34

.79

.71

.64

.42

Inventory finance

.20

Total

1.52

1.43

1.04

1.02

.82

Troubled debt restructurings

Change from

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2009

2008

2009

2008

Consumer - accruing

159,881

51,483

24,877

27,423

23,844

108,398

136,037

Potential Problem Loans and Leases ^{(2) (3)}

Change from

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2009

2008

2009

2008

Commercial real estate

222,437

143,644

176,277

137,332

100,028

78,793

122,409

Commercial business

71,809

41,847

35,826

27,127

30,619

29,962

41,190

Leasing and equipment finance

35,185

27,970

27,898

20,994

17,950

7,215

17,235

Inventory finance

Total

329,431

213,461

240,001

185,453

148,597

115,970

180,834

)

Annualized

)

Excludes non-accrual loans and leases.

)

Consists of loans and leases primarily classified for regulatory purposes as substandard and reflect the distinct possibility, but not probability, that they will become non-performing or that TCF will not be able to collect all amounts due according to the contractual terms of the loan or lease agreement.

N.M. Not meaningful.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

Non-performing assets

Change from

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2009

2008

2009

2008

Non-accrual loans and leases⁽¹⁾:

Consumer real estate

First mortgage lien

104,646

83,766

82,082

71,078

52,633

20,880

52,013

Junior lien

13,964

11,209

11,373

11,793

12,433

2,755

1,531

Total consumer real estate

118,610

94,975

93,455

82,871

65,066

23,635

53,544

Consumer other

120

147

146

(27

)

Total consumer real estate and other

118,730

95,122

93,601

82,936

65,144

23,608

53,586

Commercial real estate

93,419

87,252

67,264

54,615

46,011

6,167

47,408

Commercial business

9,836

11,532

11,857

14,088

16,356

(1,696

)

(6,520

)

Leasing and equipment finance

46,806

46,011

33,190

20,879

18,379

795

28,427

Inventory finance

Total non-accrual loans and leases

268,834

239,917

205,916

172,518

145,890

28,917

122,944

Other real estate owned:

Consumer real estate

73,397

72,745

45,633

38,632

34,101

652

39,296

Commercial real estate

20,770

24,117

25,115

23,033

20,078

(3,347

)

692

Total other real estate owned

94,167

96,862

70,748

61,665

54,179

(2,695

)

39,988

Total non-performing assets

363,001

336,779

276,664

234,183

200,069

26,222

162,932

Non-performing assets as a percentage of net loans and leases

2.57

2.45

2.03

1.78

1.55

bps

102

bps

Delinquency data - principal balances⁽²⁾

Change from

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2009

2008

2009

2008

60 days or more:

Consumer real estate

First mortgage lien

78,281

65,022

57,121

53,482

45,871

13,259

32,410

Junior lien

16,880

13,403

10,141

13,940

10,238

3,477

6,642

Total consumer real estate

95,161

78,425

67,262

67,422

56,109

16,736

39,052

Consumer other

250

207

187

313

227

Total consumer real estate and other

95,411

78,632

67,449

67,735

56,336

16,779

39,075

Commercial real estate

1,089

2,150

225

5,085

(1,061

)

(3,996

)

Commercial business

129

605

264

(117

)

(252

)

Leasing and equipment finance

13,664

16,414

12,173

10,905

8,242

(2,750

)

5,422

Inventory finance

135

Subtotal⁽²⁾

110,245

97,325

79,766

79,470

69,927

12,920

40,318

Acquired portfolios

11,585

1,657

2,504

9,928

11,585

Total delinquencies

121,830

98,982

82,270

79,470

69,927

22,848

51,903

Excluding acquired portfolios⁽³⁾

110,245

97,325

79,766

79,470

69,927

12,920

40,318

Delinquency data - % of portfolio⁽²⁾

Change from

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2009

2008

2009

2008

60 days or more:

Consumer real estate

First mortgage lien

1.62

1.34

1.18

1.11

.95

bps

Junior lien

.73

.58

.43

.58

.42

Total consumer real estate

1.33

1.09

.93

.78

Consumer other

.44

.34

.51

.32

Total consumer real estate and other

1.32

1.09

.93

.77

Commercial real estate

.03

.07

.01

.18

)

(15

)

Commercial business

.03

.12

.05

)

Leasing and equipment finance

.53

.65

.49

.44

.36

(12

)

Inventory finance

.03

.13

Subtotal⁽²⁾

.81

.72

.60

.54

Acquired portfolios

2.62

.69

.97

193

262

Total delinquencies

.87

.72

.60

.54

Excluding acquired portfolios⁽³⁾

.81

.72

.60

.54

)

The accrual status for acquired loans and leases is based on the expected cash flows determined at acquisition.

)

Excludes non-accrual loans and leases.

)

Excludes delinquencies and non-accrual loans in acquired portfolios as delinquency and non-accrual migration in these portfolios is not expected to result in financial statement losses exceeding the credit reserves netted against the loan balances.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

Three Months Ended September 30,

2009

2008

Average

Yields and

Average

Yields and

Balance

Interest

Rates ⁽¹⁾

Balance

Interest

Rates ⁽¹⁾

ASSETS

Investments and other

389,583

1,216

1.24

157,612

1,644

4.16

U.S. Government sponsored entities:

Mortgage-backed securities

1,432,670

17,185

4.80

2,157,047

28,542

5.29

Debentures

600,098

3,283

2.19

Other securities

489

4.91

3,840

3.64

Total securities available for sale

2,033,257

20,474

4.03

2,160,887

28,577

5.29

Education loans held for sale

12,516

123

3.91

Loans and leases:

Consumer real estate

Fixed-rate

5,394,711

86,440

6.36

5,550,124

93,490

6.70

Variable-rate

1,873,913

27,026

5.72

1,758,458

27,375

6.19

Consumer - other

35,016

755

8.55

45,939

963

8.34

Total consumer real estate and other

7,303,640

114,221

6.21

7,354,521

121,828

6.59

Commercial real estate

Fixed- and adjustable-rate

2,645,261

40,233

6.03

2,181,838

33,598

6.11

Variable-rate

548,425

5,744

4.16

594,992

7,440

4.97

Total commercial real estate

3,193,686

45,977

5.71

2,776,830

41,038

5.88

Commercial business

Fixed- and adjustable-rate

166,008

2,378

5.68

167,079

2,363

5.63

Variable-rate

311,033

2,879

3.67

377,747

4,363

4.59

Total commercial business

477,041

5,257

4.37

544,826

6,726

4.91

Leasing and equipment finance

2,811,165

47,625

6.78

2,300,429

41,059

7.14

Inventory finance

185,914

4,228

9.10

Total loans and leases

13,971,446

217,308

6.18

12,976,606

210,651

6.47

Total interest-earning assets

16,394,286

238,998

5.80

15,307,621

240,995

6.27

Other assets

1,132,239

1,103,938

Total assets

17,526,525

16,411,559

LIABILITIES AND STOCKHOLDERS' EQUITY

Non-interest bearing deposits:

Retail

1,380,591

1,409,855

Small business

591,451

597,894

Commercial and custodial

277,135

253,900

Total non-interest bearing deposits

2,249,177

2,261,649

Interest-bearing deposits:

Checking

1,800,583

1,770

.39

1,837,540

2,478

.54

Savings

5,071,509

13,663

1.07

2,791,559

10,157

1.45

Money market

723,098

1,638

.90

629,905

2,310

1.46

Subtotal

7,595,190

17,071

.89

5,259,004

14,945

1.13

Certificates of deposit

1,757,884

10,442

2.36

2,469,327

18,785

3.02

Total interest-bearing deposits

9,353,074

27,513

1.17

7,728,331

33,730

1.74

Total deposits

11,602,251

27,513

.94

9,989,980

33,730

1.34

Borrowings:

Short-term borrowings

25,267

.22

429,861

2,301

2.13

Long-term borrowings

4,306,009

49,982

4.61

4,567,706

52,799

4.60

Total borrowings

4,331,276

49,996

4.58

4,997,567

55,100

4.39

Total deposits and borrowings

15,933,527

77,509

1.93

14,987,547

88,830

2.36

Other liabilities

435,215

339,304

Total liabilities

16,368,742

15,326,851

Stockholders' equity

1,157,783

1,084,708

Total liabilities and stockholders' equity

17,526,525

16,411,559

Net interest income and margin

161,489

3.92

152,165

3.97

(1) Annualized

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

Nine Months Ended September 30,

2009

2008

Average

Yields and

Average

Yields and

Balance

Interest

Rates ⁽¹⁾

Balance

Interest

Rates ⁽¹⁾

ASSETS

Investments and other

442,428

3,210

.97

152,232

4,713

4.13

U.S. Government sponsored entities:

Mortgage-backed securities

1,695,377

63,195

4.97

2,146,185

85,299

5.30

Debentures

381,022

6,177

2.16

Other securities

497

5.37

15,938

415

3.48

Total securities available for sale

2,076,896

69,392

4.45

2,162,123

85,714

5.29

Education loans held for sale

116,754

5,331

6.10

Loans and leases:

Consumer real estate

Fixed-rate

5,441,462

263,858

6.48

5,544,173

280,546

6.76

Variable-rate

1,844,578

79,807

5.78

1,688,362

82,071

6.49

Consumer - other

36,921

2,357

8.53

45,481

2,937

8.63

Total consumer real estate and other

7,322,961

346,022

6.32

7,278,016

365,554

6.71

Commercial real estate

Fixed- and adjustable-rate

2,529,735

114,404

6.05

2,073,784

96,710

6.23

Variable-rate

571,724

17,093

4.00

593,164

23,654

5.33

Total commercial real estate

3,101,459

131,497

5.67

2,666,948

120,364

6.03

Commercial business

Fixed- and adjustable-rate

171,450

7,392

5.76

167,502

7,551

6.02

Variable-rate

315,230

7,798

3.31

371,846

14,229

5.11

Total commercial business

486,680

15,190

4.17

539,348

21,780

5.39

Leasing and equipment finance

2,751,935

142,063

6.88

2,223,811

123,137

7.38

Inventory finance

111,479

7,312

8.75

Total loans and leases

13,774,514

642,084

6.23

12,708,123

630,835

6.63

Total interest-earning assets

16,293,838

714,686

5.86

15,139,232

726,593

6.41

Other assets

1,144,931

1,167,973

Total assets

17,438,769

16,307,205

LIABILITIES AND STOCKHOLDERS' EQUITY

Non-interest bearing deposits:

Retail

1,418,244

1,429,752

Small business

575,558

580,248

Commercial and custodial

255,066

231,184

Total non-interest bearing deposits

2,248,868

2,241,184

Interest-bearing deposits:

Checking

1,780,380

6,407

.48

1,855,963

9,998

.72

Savings

4,569,882

46,072

1.35

2,800,120

35,599

1.70

Money Market

686,830

5,718

1.11

609,629

7,474

1.64

Subtotal

7,037,092

58,197

1.11

5,265,712

53,071

1.35

Certificates of deposit

2,100,342

42,745

2.72

2,480,262

66,341

3.57

Total interest-bearing deposits

9,137,434

100,942

1.48

7,745,974

119,412

2.06

Total deposits

11,386,302

100,942

1.19

9,987,158

119,412

1.60

Borrowings:

Short-term borrowings

32,739

132

.54

397,514

7,888

2.65

Long-term borrowings

4,326,634

150,247

4.64

4,467,752

152,737

4.57

Total borrowings

4,359,373

150,379

4.61

4,865,266

160,625

4.41

Total deposits and borrowings

15,745,675

251,321

2.13

14,852,424

280,037

2.52

Other liabilities

406,271

356,031

Total liabilities

16,151,946

15,208,455

Stockholders' equity

1,286,823

1,098,750

Total liabilities and

stockholders' equity

17,438,769

16,307,205

Net interest income and margin

463,365

3.80

446,556

3.94

(1) Annualized

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME AND FINANCIAL RATIOS

(Dollars in thousands, except per-share data)

(Unaudited)

At or For the Three Months Ended

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

2009

2008

Interest income:

Loans and leases

217,307

215,400

209,377

211,322

210,651

Securities available for sale

20,474

23,217

25,701

25,232

28,577

Education loans held for sale

123

Investments and other

1,217

1,137

856

1,224

1,644

Total interest income

238,998

239,754

235,934

237,802

240,995

Interest expense:

Deposits

27,512

33,345

40,084

37,362

33,730

Borrowings

49,997

49,946

50,437

53,323

55,100

Total interest expense

77,509

83,291

90,521

90,685

88,830

Net interest income

161,489

156,463

145,413

147,117

152,165

Provision for credit losses

75,544

61,891

43,712

47,050

52,105

Net interest income after provision for credit losses

85,945

94,572

101,701

100,067

100,060

Non-interest income:

Fees and service charges

77,433

77,536

57,064

67,448

71,783

Card revenue

26,393

26,604

24,960

25,243

26,240

ATM revenue

7,861

7,973

7,598

7,688

8,720

Subtotal

111,687

112,113

89,622

100,379

106,743

Leasing and equipment finance

15,173

16,881

12,651

16,298

13,006

Other

1,197

820

458

130

3,296

Fees and other revenue

128,057

129,814

102,731

116,807

123,045

Gains on securities

10,556

11,548

8,167

498

Total non-interest income

128,057

140,370

114,279

124,974

123,543

Non-interest expense:

Compensation and employee benefits

90,680

90,752

86,190

83,323

84,895

Occupancy and equipment

31,619

31,527

32,047

32,503

31,832

Deposit account premiums

7,472

7,287

6,576

5,659

7,292

Advertising and promotions

4,766

4,134

4,445

4,643

5,017

FDIC premiums and assessments

5,085

13,303

3,795

1,706

426

Foreclosed real estate and repossessed assets

8,038

6,125

4,291

6,341

4,883

Operating lease depreciation

3,734

3,860

4,024

4,269

4,215

Other

38,873

39,558

32,840

41,366

39,028

Total non-interest expense

190,267

196,546

174,208

179,810

177,588

Pretax income

23,735

38,396

41,772

45,231

46,015

Income tax expense

6,491

14,853

15,125

17,527

15,889

Income after income tax expense

17,244

23,543

26,647

27,704

30,126

Income (loss) attributable to non-controlling interest

(207

)

Net income

17,451

23,543

26,647

27,704

30,126

Preferred stock dividends

1,193

5,185

2,540

Non-cash deemed preferred stock dividend

12,025

Net income available to common stockholders

17,451

10,325

21,462

25,164

30,126

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TCF Reports 58th Consecutive Quarter of Net Income - Earns $17.5 Million

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