CORRECTING and REPLACING TCF Reports Third Quarter 2020 Results

·25 min read

TCF also announces quarterly cash dividends on common and preferred stock

In the "Balance Sheet" section, sixth paragraph, the record date for the common stock and 5.70% Series C Non-Cumulative Perpetual Preferred Stock dividends should be November 13, 2020 (instead of November 16, 2020).

The updated release reads:

TCF REPORTS THIRD QUARTER 2020 RESULTS

TCF also announces quarterly cash dividends on common and preferred stock

TCF Financial Corporation (NASDAQ: TCF):

Third Quarter 2020 Highlights

  • Quarterly net income of $55.7 million, or $0.35 per diluted share, up 134.5% from the second quarter of 2020

  • Adjusted diluted earnings per common share of $0.63(1), up 16.7% from the second quarter of 2020. Adjusted diluted earnings per common share excludes $43.0 million, or $0.28 per share, after-tax impact of merger-related expenses and notable items

  • Successful on-time completion of merger-of-equals integration activities

  • Loan and lease balances on deferral status down to $403.6 million as of September 30, 2020 ($289.5 million of commercial balances and $114.1 million of consumer balances)

  • Loan and lease balances declined 3.4% from June 30, 2020, primarily due to declines in the commercial and industrial and consumer portfolios

  • Net charge-offs of $24.6 million, or 0.28% of average loans and leases (annualized)

  • Provision for credit losses of $69.7 million, down 11.5% from the second quarter of 2020

  • Allowance for credit losses, which includes the reserve for unfunded lending commitments, of 1.60% of total loans and leases, up from 1.42% at June 30, 2020

  • Efficiency ratio of 75.29%, improved 297 basis points from the second quarter of 2020. Adjusted efficiency ratio of 61.17%(1), up 137 basis points from the second quarter of 2020

  • Common equity Tier 1 capital ratio of 11.45%, compared to 11.06% at June 30, 2020

  • Declared quarterly cash dividends on common stock of $0.35 per share payable on December 1, 2020

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

  • Pre-tax merger-related expenses of $54.0 million, $42.8 million net of tax, or $0.28 per diluted common share for the third quarter of 2020, compared to pre-tax merger-related expenses of $81.6 million, $64.6 million net of tax, or $0.42 per diluted common share for the second quarter of 2020

  • Pre-tax expenses, of $154 thousand, $122 thousand net of tax, or $0.00 per diluted common share related to notable items for the third quarter of 2020, compared to pre-tax income, net expenses of $4.4 million, $3.5 million net of tax, or $0.02 per diluted common share related to notable items for the second quarter of 2020, see summary of notable items adjustments below

(1)

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

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

Summary of Financial Results(1)

At or For the Quarter Ended

Change From

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

(Dollars in thousands, except per share data)

2020

2020

2020

2019

2019

2020

2019

Financial Results

Net income attributable to TCF

$

55,738

$

23,764

$

51,899

$112,399

$

22,148

134.5

%

151.7

%

Net interest income

377,167

378,359

401,481

408,753

371,793

(0.3

)

1.4

Basic earnings per common share

$

0.35

$

0.14

$

0.33

$

0.72

$

0.15

150.0

133.3

Diluted earnings per common share

0.35

0.14

0.32

0.72

0.15

150.0

133.3

Return on average assets ("ROAA")(2)

0.46

%

0.21

%

0.46

%

0.99

%

0.26

%

25

bps

20

bps

ROACE(2)

3.87

1.56

3.64

8.00

1.75

231

212

ROATCE (non-GAAP)(2)(3)

5.71

2.57

5.42

11.35

2.68

314

303

Net interest margin

3.31

3.33

3.73

3.86

4.12

(2

)

(81

)

Net interest margin (FTE)(2)(3)

3.34

3.35

3.76

3.89

4.14

(1

)

(80

)

Net charge-offs as a percentage of average loans and leases(2)

0.28

0.04

0.06

0.07

0.39

24

(11

)

Nonperforming assets as a percentage of total loans and leases and other real estate owned(4)

1.20

0.94

0.80

0.59

0.62

26

58

Efficiency ratio

75.29

78.26

69.57

73.49

91.32

(297

)

(1,603

)

Adjusted Financial Results (non-GAAP)

Adjusted net income attributable to TCF(2)

$

98,696

$

84,862

$

89,855

$161,581

$128,301

16.3

%

(23.1

)

%

Adjusted diluted earnings per common

share(3)

$

0.63

$

0.54

$

0.57

$

1.04

$

0.98

16.7

(35.7

)

Adjusted ROAA(2)(3)

0.81

%

0.70

%

0.78

%

1.42

%

1.34

%

11

bps

(53

)

bps

Adjusted ROACE(2)(3)

6.99

6.03

6.43

11.57

11.21

96

(422

)

Adjusted ROATCE(2)(3)

9.96

8.70

9.24

16.25

14.96

126

(500

)

Adjusted efficiency ratio(3)

61.17

59.80

58.24

58.51

58.74

137

243

(1)

For the third quarter 2019, TCF’s reported financial results reflect Legacy TCF financial results for the period before August 1, 2019 and the post-merger combined TCF financial results on and after August 1, 2019.

(2)

Annualized.

(3)

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

(4)

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

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

For the Quarter Ended September 30, 2020

For the Quarter Ended June 30, 2020

(Dollars in thousands, except per share data)

Pre-tax income (loss)

After-tax benefit (loss)(1)

Per Share

Pre-tax income (loss)

After-tax benefit (loss)(1)

Per Share

Merger-related expenses

$

(54,011

)

$

(42,836

)

$

(0.28

)

$

(81,619

)

(64,585

)

$

(0.42

)

Notable items:

Expenses related to the sale of Legacy TCF auto finance portfolio(2)

(901

)

(713

)

Branch sales and exit costs, net(3)

14,166

11,210

0.07

Loan servicing rights impairment(4)

(154

)

(122

)

(8,858

)

(7,009

)

(0.05

)

Total notable items

(154

)

(122

)

4,407

3,488

0.02

Total merger-related and notable items

$

(54,165

)

$

(42,958

)

$

(0.28

)

$

(77,212

)

$

(61,097

)

$

(0.40

)

(1)

Net of tax benefit at our normal tax rate and other tax benefits.

(2)

Second quarter of 2020 included within other noninterest expense ($0.8 million) and compensation and employee benefits ($0.1 million).

(3)

Second quarter of 2020 included within other noninterest income ($14.7 million net gain) and other noninterest expense ($0.6 million).

(4)

Included within other noninterest income.

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

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

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

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

Net Interest Income and Net Interest Margin

Net interest income was $377.2 million for the third quarter of 2020, a decrease of $1.2 million, or 0.3%, from the second quarter of 2020. Purchase accounting accretion and amortization included in net interest income was $17.7 million for the third quarter of 2020, compared to $18.2 million for the second quarter of 2020. Additionally, third quarter of 2020 net interest income recorded included $14.7 million of interest and fee income from PPP less funding costs, compared to $9.6 million for the second quarter of 2020. Adjusted net interest income, excluding purchase accounting accretion and amortization and the impact from PPP loans, a non-GAAP financial measure, was $344.7 million for the third quarter of 2020, compared to $350.6 million for the second quarter of 2020. Net interest margin was 3.31% for the third quarter of 2020, compared to 3.33% in the second quarter of 2020, while net interest margin on a fully tax-equivalent basis (FTE), a non-GAAP financial measure, was 3.34%, down one basis point from the second quarter of 2020. The decrease in net interest margin from the second quarter of 2020 was driven by higher average cash balances and lower yields on loans, leases and securities, partially offset by lower cost of funds. Adjusted net interest margin FTE, excluding purchase accounting accretion and amortization and the impact of PPP loans, a non-GAAP financial measure, was 3.19% for the third quarter of 2020, down one basis point from the second quarter of 2020. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables for reconciliations of our noted non-GAAP measures.

Noninterest Income

Noninterest income was $118.8 million for the third quarter of 2020, a decrease of $14.2 million, or 10.7%, from the second quarter of 2020. Noninterest income for the third quarter of 2020 included a notable item of an $154 thousand loan servicing rights impairment, included in other noninterest income. Noninterest income for the second quarter of 2020 included notable items of a $14.7 million gain on the sale of our Arizona branches and an $8.9 million loan servicing rights impairment, both included in other noninterest income. Adjusted noninterest income, a non-GAAP financial measure, for the third quarter of 2020 was $119.0 million, compared to $127.2 million in the second quarter of 2020. The third quarter of 2020 noninterest income, compared to the second quarter of 2020, also included decreases of $5.5 million in net gains on sales of loans and leases, $5.3 million in leasing revenue due to a decrease in sales-type lease revenue through our equipment financing activity, and $2.7 million in servicing fee revenue due to accelerated loan servicing rights amortization related to faster prepayment speeds, partially offset by increases of $2.7 million in card and ATM revenue, $2.6 million in fees and service charges on deposit accounts, and $2.3 million in net gains on investment securities. The third quarter of 2020 also included a $2.6 million unfavorable interest rate swap mark-to-market adjustment resulting from changes in the interest rate environment, included in other noninterest income, compared to an unfavorable interest rate swap mark-to-market adjustment of $428 thousand in the second quarter of 2020.

Noninterest Expense

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

Income Tax Expense

Income tax benefit for the third quarter of 2020 was $4.4 million, compared to income tax expense of $6.2 million, an effective tax rate of 19.1% for the second quarter of 2020. Income tax for the third quarter of 2020 included a benefit of $16.0 million attributable to tax net operating loss carryback benefits associated with the CARES Act. Excluding the benefit provided by the CARES Act, our effective tax rate for the third quarter of 2020 was 21.9%.

Credit Quality

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

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

Allowance for Credit Losses Allowance for credit losses ("ACL") includes both the allowance for loan and lease losses, which is presented separately on the Consolidated Statements of Financial Condition, and the reserve for unfunded lending commitments, which is included in other liabilities on the Consolidated Statements of Financial Condition. The ACL was $549.4 million, or 1.60% of total loans and leases, at September 30, 2020, up from $503.9 million, or 1.42%, at June 30, 2020. The ACL as a percentage of total loans and leases, excluding PPP loans, a non-GAAP financial measure, was 1.69% at September 30, 2020, an increase from 1.49% at June 30, 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The PPP loans are individually guaranteed by the Small Business Administration and therefore the accounting under CECL does not require reserves to be recorded on such loans. The increase in the ACL and the ACL as a percentage of total loans and leases from June 30, 2020 was primarily due to commercial portfolio credit risk management activities, driven by Capital Solutions loans and leases, partially offset by a decrease in reserve for unfunded lending commitments.

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

Balance Sheet

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

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

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

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

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

TCF's board of directors also declared a regular quarterly cash dividend of $0.35 per common share payable on December 1, 2020 to shareholders of record at the close of business on November 13, 2020. In addition, the board of directors declared a quarterly cash dividend of $0.35625 per depositary share payable on December 1, 2020 to shareholders of record of the depositary shares, representing a 1/1,000th interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock, at the close of business on November 13, 2020.

Conference Call Details TCF will host a conference call to discuss third quarter 2020 results on Tuesday, October 27, 2020 at 10:00 a.m. Eastern Time. The conference call will be available via a live webcast on the Investor Relations section of TCF's website, ir.tcfbank.com, and archived for replay. The conference call can also be accessed by dialing (844) 512-2926 and entering access code 8567352. To listen to the replay via phone, please dial (877) 344-7529 and enter access code 10148473. The replay begins approximately one hour after the call is completed on Tuesday, October 27, 2020 and will be available through Tuesday, November 3, 2020.

TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $48 billion in total assets at September 30, 2020 and a top 10 deposit market share in the Midwest. TCF’s primary banking subsidiary, TCF National Bank, is a premier Midwest bank offering consumer and commercial banking, trust and wealth management, and specialty leasing and lending products and services to consumers, small businesses and commercial clients. TCF has approximately 475 banking centers primarily located in Michigan, Illinois and Minnesota with additional locations in Colorado, Ohio, South Dakota and Wisconsin. TCF also conducts business across all 50 states and Canada through its specialty lending and leasing businesses. To learn more about TCF, visit ir.tcfbank.com.

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

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

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

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

Use of Non-GAAP Financial Measures

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

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Condition (Unaudited)

Change From

(Dollars in thousands)

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30, 2020

Sep 30, 2019

2020

2020

2020

2019

2019

$

%

$

%

ASSETS:

Cash and cash equivalents:

Cash and due from banks

$

538,481

$

535,507

$

713,413

$

491,787

$

586,060

$

2,974

0.6%

$

(47,579

)

(8.1)%

Interest-bearing deposits with other banks

1,232,773

2,545,170

565,458

736,584

736,954

(1,312,397

)

(51.6)

495,819

67.3

Total cash and cash equivalents

1,771,254

3,080,677

1,278,871

1,228,371

1,323,014

(1,309,423

)

(42.5)

448,240

33.9

Federal Home Loan Bank and Federal Reserve Bank stocks, at cost

300,444

386,483

484,461

442,440

290,238

(86,039

)

(22.3)

10,206

3.5

Investment securities:

Available-for-sale, at fair value

7,446,163

7,219,373

7,025,224

6,720,001

5,579,835

226,790

3.1

1,866,328

33.4

Held-to-maturity, at amortized cost

170,309

130,101

135,619

139,445

144,000

40,208

30.9

26,309

18.3

Total investment securities

7,616,472

7,349,474

7,160,843

6,859,446

5,723,835

266,998

3.6

1,892,637

33.1

Loans and leases held-for-sale

460,427

532,799

287,177

199,786

1,436,069

(72,372

)

(13.6)

(975,642

)

(67.9)

Loans and leases

34,343,691

35,535,824

35,921,614

34,497,464

33,510,752

(1,192,133

)

(3.4)

832,939

2.5

Allowance for loan and lease losses

(515,229

)

(461,114

)

(406,383

)

(113,052

)

(121,218

)

(54,115

)

(11.7)

(394,011

)

N.M.

Loans and leases, net

33,828,462

35,074,710

35,515,231

34,384,412

33,389,534

(1,246,248

)

(3.6)

438,928

1.3

Premises and equipment, net

469,699

472,240

516,454

533,138

554,194

(2,541

)

(0.5)

(84,495

)

(15.2)

Goodwill

1,313,046

1,313,046

1,313,046

1,299,878

1,265,111

0

0.0

47,935

3.8

Other intangible assets, net

151,875

157,373

162,887

168,368

215,910

(5,498

)

(3.5)

(64,035

)

(29.7)

Loan servicing rights

38,253

38,816

47,283

56,313

55,301

(563

)

(1.5)

(17,048

)

(30.8)

Other assets

1,615,857

1,656,842

1,828,130

1,479,401

1,439,305

(40,985

)

(2.5)

176,552

12.3

Total assets

$

47,565,789

$

50,062,460

$

48,594,383

$

46,651,553

$

45,692,511

$

(2,496,671

)

(5.0)%

$

1,873,278

4.1%

LIABILITIES AND EQUITY:

Deposits:

Noninterest-bearing

$

10,691,041

$

10,480,245

$

8,237,916

$

7,970,590

$

7,979,900

$

210,796

2.0%

$

2,711,141

34.0%

Interest-bearing

28,481,056

28,730,627

27,561,387

26,497,873

27,306,174

(249,571

)

(0.9)

1,174,882

4.3

Total deposits

39,172,097

39,210,872

35,799,303

34,468,463

35,286,074

(38,775

)

(0.1)

3,886,023

11.0

Short-term borrowings

655,461

2,772,998

3,482,535

2,669,145

2,607,300

(2,117,537

)

(76.4)

(1,951,839

)

(74.9)

Long-term borrowings

871,845

936,908

2,600,594

2,354,448

860,482

(65,063

)

(6.9)

11,363

1.3

Other liabilities

1,207,966

1,483,127

1,056,118

1,432,256

1,245,238

(275,161

)

(18.6)

(37,272

)

(3.0)

Total liabilities

41,907,369

...

44,403,905

42,938,550

40,924,312

39,999,094

(2,496,536

)

(5.6)

1,908,275

4.8

Equity:

Preferred stock

169,302

169,302

169,302

169,302

169,302

Common stock

152,380

152,233

152,186

152,966

153,571

147

0.1

(1,191

)

(0.8)

Additional paid-in capital

3,450,669

3,441,925

3,433,234

3,462,080

3,478,159

8,744

0.3

(27,490

)

(0.8)

Retained earnings

1,700,044

1,700,480

1,732,932

1,896,427

1,840,214

(436

)

0.0

(140,170

)

(7.6)

Accumulated other comprehensive income

191,771

198,408

166,170

54,277

56,228

(6,637

)

(3.3)

135,543

N.M.

Other

(27,122

)

(27,093

)

(28,140

)

(28,037

)

(27,370

)

(29

)

(0.1)

248

0.9

Total TCF Financial Corporation shareholders' equity

5,637,044

5,635,255

5,625,684

5,707,015

5,670,104

1,789

0.0

(33,060

)

(0.6)

Non-controlling interest

21,376

23,300

30,149

20,226

23,313

(1,924

)

(8.3)

(1,937

)

(8.3)

Total equity

5,658,420

5,658,555

5,655,833

5,727,241

5,693,417

(135

)

0.0

(34,997

)

(0.6)

Total liabilities and equity

$

47,565,789

$

50,062,460

$

48,594,383

$

46,651,553

$

45,692,511

$

(2,496,671

)

(5.0)%

$

1,873,278

4.1%

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

Quarter Ended

Change From

(Dollars in thousands)

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30, 2020

Sep. 30, 2019

2020

2020

2020

2019

2019

$

%

$

%

Interest income:

Interest and fees on loans and leases

$

373,112

$

392,826

$

443,096

$

446,738

$

417,370

$

(19,714

)

(5.0)%

$

(44,258

)

(10.6)%

Interest on investment securities:

Taxable

35,648

32,505

40,920

36,282

31,038

3,143

9.7

4,610

14.9

Tax-exempt

3,892

4,155

4,349

4,374

3,385

(263

)

(6.3)

507

15.0

Interest on loans held-for-sale

3,829

3,322

1,561

15,767

1,408

507

15.3

2,421

171.9

Interest on other earning assets

3,967

5,562

5,466

6,617

6,607

(1,595

)

(28.7)

(2,640

)

(40.0)

Total interest income

420,448

438,370

495,392

509,778

459,808

(17,922

)

(4.1)

(39,360

)

(8.6)

Interest expense:

Interest on deposits

31,852

46,785

67,419

77,003

70,900

(14,933

)

(31.9)

(39,048

)

(55.1)

Interest on borrowings

11,429

13,226

26,492

24,022

17,115

(1,797

)

(13.6)

(5,686

)

(33.2)

Total interest expense

43,281

60,011

93,911

101,025

88,015

(16,730

)

(27.9)

(44,734

)

(50.8)

Net interest income

377,167

378,359

401,481

408,753

371,793

(1,192

)

(0.3)

5,374

1.4

Provision for credit losses

69,664

78,726

96,943

14,403

27,188

(9,062

)

(11.5)

42,476

156.2

Net interest income after provision for credit losses

307,503

299,633

304,538

394,350

344,605

7,870

2.6

(37,102

)

(10.8)

Noninterest income:

Leasing revenue

31,905

37,172

33,565

46,686

39,590

(5,267

)

(14.2)

(7,685

)

(19.4)

Fees and service charges on deposit accounts

25,470

22,832

34,597

39,356

34,384

2,638

11.6

(8,914

)

(25.9)

Net gains (losses) on sales of loans and leases

23,490

29,034

20,590

12,934

(5,984

)

(5,544

)

(19.1)

29,474

N.M.

Card and ATM revenue

23,383

20,636

21,685

24,751

23,315

2,747

13.3

68

0.3

Wealth management revenue

6,506

6,206

6,151

6,172

4,241

300

4.8

2,265

53.4

Servicing fee revenue

321

3,041

6,792

6,022

5,121

(2,720

)

(89.4)

(4,800

)

(93.7)

Net gains on investment securities

2,324

8

0

8

5,900

2,316

N.M.

(3,576

)

(60.6)

Other

5,411

14,125

13,583

22,123

(12,309

)

(8,714

)

(61.7)

17,720

N.M.

Total noninterest income

118,810

133,054

136,963

158,052

94,258

(14,244

)

(10.7)

24,552

26.0

Noninterest expense:

Compensation and employee benefits

168,323

171,799

171,528

180,969

155,745

(3,476

)

(2.0)

12,578

8.1

Occupancy and equipment

48,233

54,107

57,288

56,771

49,229

(5,874

)

(10.9)

(996

)

(2.0)

Lease financing equipment depreciation

17,932

18,212

18,450

18,629

19,408

(280

)

(1.5)

(1,476

)

(7.6)

Net foreclosed real estate and repossessed assets

1,518

998

1,859

4,242

2,203

520

52.1

(685

)

(31.1)

Merger-related expenses

54,011

81,619

36,728

47,025

111,259

(27,608

)

(33.8)

(57,248

)

(51.5)

Other

83,423

73,506

88,746

108,935

87,776

9,917

13.5

(4,353

)

(5.0)

Total noninterest expense

373,440

400,241

374,599

416,571

425,620

(26,801

)

(6.7)

(52,180

)

(12.3)

Income before income tax expense (benefit)

52,873

32,446

66,902

135,831

13,243

20,427

63.0

39,630

N.M.

Income tax expense (benefit)

(4,429

)

6,213

13,086

21,375

(11,735

)

(10,642

)

N.M.

7,306

62.3

Income after income tax expense (benefit)

57,302

26,233

53,816

114,456

24,978

31,069

118.4

32,324

129.4

Income attributable to non-controlling interest

1,564

2,469

1,917

2,057

2,830

(905

)

(36.7)

(1,266

)

(44.7)

Net income attributable to TCF Financial Corporation

55,738

23,764

51,899

112,399

22,148

31,974

134.5

33,590

151.7

Preferred stock dividends

2,494

2,494

2,493

2,494

2,494

Net income available to common shareholders

$

53,244

$

21,270

$

49,406

$

109,905

$

19,654

$

31,974

150.3%

$

33,590

170.9%

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

Nine Months Ended September 30,

Change

(Dollars in thousands, except per share data)

2020

2019

$

%

Interest income:

Interest and fees on loans and leases

$

1,209,034

$

983,890

$

225,144

22.9%

Interest on investment securities:

Taxable

109,073

69,745

39,328

56.4

Tax-exempt

12,396

7,277

5,119

70.3

Interest on loans held-for-sale

8,712

2,832

5,880

N.M.

Interest on other earning assets

14,995

13,739

1,256

9.1

Total interest income

1,354,210

1,077,483

276,727

25.7

Interest expense:

Interest on deposits

146,056

149,154

(3,098

)

(2.1)

Interest on borrowings

51,147

48,050

3,097

6.4

Total interest expense

197,203

197,204

(1

)

0.0

Net interest income

1,157,007

880,279

276,728

31.4

Provision for credit losses

245,333

50,879

194,454

N.M.

Net interest income after provision for credit losses

911,674

829,400

82,274

9.9

Noninterest income:

Leasing revenue

102,642

117,032

(14,390

)

(12.3)

Fees and service charges on deposit accounts

82,899

88,504

(5,605

)

(6.3)

Net gains on sales of loans and leases

73,114

13,374

59,740

N.M.

Card and ATM revenue

65,704

62,470

3,234

5.2

Wealth management revenue

18,863

4,241

14,622

N.M.

Servicing fee revenue

10,154

14,754

(4,600

)

(31.2)

Net gains on investment securities

2,332

7,417

(5,085

)

(68.6)

Other

33,119

(312

)

33,431

N.M.

Total noninterest income

388,827

307,480

81,347

26.5

Noninterest expense:

Compensation and employee benefits

511,650

395,953

115,697

29.2

Occupancy and equipment

159,628

132,789

26,839

20.2

Lease financing equipment depreciation

54,594

57,797

(3,203

)

(5.5)

Net foreclosed real estate and repossessed assets

4,375

9,281

(4,906

)

(52.9)

Merger-related expenses

172,358

124,943

47,415

37.9

Other

245,675

194,781

50,894

26.1

Total noninterest expense

1,148,280

915,544

232,736

25.4

Income before income tax expense

152,221

221,336

(69,115

)

(31.2)

Income tax expense

14,870

28,866

(13,996

)

(48.5)

Income after income tax expense

137,351

192,470

(55,119

)

(28.6)

Income attributable to non-controlling interest

5,950

9,401

(3,451

)

(36.7)

Net income attributable to TCF Financial Corporation

131,401

183,069

(51,668

)

(28.2)

Preferred stock dividends

7,481

7,481

Net income available to common shareholders

$

123,920

$

175,588

$

(51,668

)

(29.4)%

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

Quarter Ended

Sep. 30, 2020

Jun. 30, 2020

Sep. 30, 2019

Average

Yields &

Average

Yields &

Average

Yields &

(Dollars in thousands)

Balance

Interest(1)

Rates(1)(2)

Balance

Interest(1)

Rates(1)(2)

Balance

Interest(1)

Rates(1)(2)

ASSETS:

Federal Home Loan Bank and Federal Reserve Bank stocks

$

361,320

$

2,973

3.27%

$

401,532

$

4,376

4.38%

$

230,767

$

806

1.39%

Investment securities held-to-maturity

135,332

573

1.69

132,054

71

0.21

143,078

602

1.68

Investment securities available-for-sale:

Taxable

6,021,643

35,076

2.33

5,730,762

32,434

2.26

4,232,878

30,436

2.88

Tax-exempt(3)

685,652

4,971

2.90

743,744

5,221

2.81

643,576

4,283

2.66

Loans and leases held-for-sale

490,886

3,829

3.13

356,671

3,322

3.73

118,482

1,408

4.74

Loans and leases(3)(4)

Commercial and industrial

11,740,727

127,751

4.30

12,713,714

140,576

4.41

9,290,978

146,865

6.25

Commercial real estate

9,616,301

95,779

3.90

9,658,124

95,373

3.91

6,964,643

97,042

5.45

Lease financing

2,679,142

32,696

4.88

2,712,291

33,803

4.99

2,570,567

32,833

5.11

Residential mortgage

5,987,754

57,609

3.86

6,326,227

62,023

3.93

4,853,627

51,511

4.23

Home equity

3,399,468

43,489

5.09

3,509,107

45,314

5.19

3,433,830

56,166

6.49

Consumer installment

1,386,448

17,551

5.04

1,459,446

17,703

4.88

2,389,830

34,543

5.73

Total loans and leases(3)(4)

34,809,840

374,875

4.26

36,378,909

394,792

4.33

29,503,475

418,960

5.62

Interest-bearing deposits with banks and other

2,572,254

994

0.16

1,587,665

1,186

0.30

933,014

5,800

2.44

Total interest-earning assets

45,076,927

423,291

3.72

45,331,337

441,402

3.88

35,805,270

462,295

5.11

Other assets

4,462,673

4,384,779

3,289,096

Total assets

$

49,539,600

$

49,716,116

$

39,094,366

LIABILITIES AND EQUITY:

Noninterest-bearing deposits

$

10,654,288

$

9,830,687

$

6,564,195

Interest-bearing deposits:

Savings

9,301,198

4,050

0.17

9,082,184

8,930

0.40

7,676,165

14,110

0.73

Certificates of deposit

6,657,697

18,446

1.10

7,491,502

26,744

1.44

7,320,720

38,233

2.07

Checking

7,029,914

2,025

0.11

6,649,288

2,329

0.14

4,805,843

5,520

0.46

Money market

5,501,747

7,331

0.53

5,380,547

8,782

0.66

3,490,922

13,037

1.48

Total interest-bearing deposits

28,490,556

31,852

0.44

28,603,521

46,785

0.66

23,293,650

70,900

1.21

Total deposits

39,144,844

31,852

0.32

38,434,208

46,785

0.49

29,857,845

70,900

0.94

Borrowings:

Short-term borrowings

2,153,030

2,511

0.46

3,016,490

4,085

0.54

1,884,228

5,345

1.11

Long-term borrowings

910,149

8,917

3.91

1,072,394

9,141

3.40

1,472,150

11,769

3.17

Total borrowings

3,063,179

11,428

1.48

4,088,884

13,226

1.29

3,356,378

17,114

2.01

Total interest-bearing liabilities

31,553,735

43,280

0.55

32,692,405

60,011

0.74

26,650,028

88,014

1.31

Total deposits and borrowings

42,208,023

43,280

0.41

42,523,092

60,011

0.57

33,214,223

88,014

1.05

Accrued expenses and other liabilities

1,633,850

1,534,769

1,197,014

Total liabilities

43,841,873

44,057,861

34,411,237

Total TCF Financial Corporation shareholders' equity

5,675,089

5,630,133

4,657,613

Non-controlling interest in subsidiaries

22,638

28,122

25,516

Total equity

5,697,727

5,658,255

4,683,129

Total liabilities and equity

$

49,539,600

$

49,716,116

$

39,094,366

Net interest spread (FTE)

3.31%

3.31%

4.06%

Net interest income (FTE) and net interest margin (FTE)

$

380,011

3.34%

$

381,391

3.35%

$

374,281

4.14%

Reconciliation to Reported Net Interest Income

Net interest income and net interest margin (GAAP)

$377,167

3.31%

$378,359

3.33%

$371,793

4.12%

Adjustments for taxable equivalent

interest(1)(3)

Loans and leases

1,763

1,966

1,590

Tax-exempt investment securities

1,079

1,066

898

Total FTE adjustments

2,842

3,032

2,488

Net interest income and net interest margin (FTE)

$380,009

3.34%

$381,391

3.35%

$374,281

4.14%

(1)

Interest and yields are presented on a fully tax-equivalent basis.

(2)

Annualized.

(3)

The yield on tax-exempt loans and investment securities available-for-sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.

(4)

Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

Nine Months Ended

9/30/2020

9/30/2019

Average

Yields &

Average

Yields &

(Dollars in thousands)

Balance

Interest(1)

Rates(1)(2)

Balance

Interest(1)

Rates(1)(2)

ASSETS:

Federal Home Loan Bank and Federal Reserve Bank stocks

$

405,680

$

10,501

3.46%

$

149,801

$

2,860

2.55%

Investment securities held-to-maturity

134,557

1,204

1.19

145,627

2,061

1.89

Investment securities available-for-sale:

Taxable

5,881,983

107,870

2.45

3,029,754

67,684

2.98

Tax-exempt(3)

734,110

15,695

2.85

461,499

9,210

2.66

Loans and leases held-for-sale

329,131

8,712

3.53

71,739

2,832

5.27

Loans and leases(3)(4)

Commercial and industrial

12,092,629

429,129

4.70

7,499,975

363,260

6.45

Commercial real estate

9,522,333

308,895

4.26

4,332,238

173,983

5.30

Lease financing

2,691,208

100,655

4.99

2,554,521

98,116

5.12

Residential mortgage

6,141,855

181,011

3.93

3,188,294

109,634

4.59

Home equity

3,474,012

139,906

5.38

3,161,083

160,206

6.78

Consumer installment

1,454,187

54,996

5.05

1,945,059

82,305

5.66

Total loans and leases(3)(4)

35,376,224

1,214,592

4.55

22,681,170

987,504

5.80

Interest-bearing deposits with banks and other

1,569,968

4,494

0.38

494,007

10,878

2.92

Total interest-earning assets

44,431,653

1,363,068

4.07

27,033,597

1,083,029

5.33

Other assets

4,318,287

2,249,678

Total assets

$

48,749,940

$

29,283,275

LIABILITIES AND EQUITY:

Noninterest-bearing deposits

$

9,475,952

$

4,831,271

Interest-bearing deposits:

Savings

8,992,197

26,649

0.40

6,799,432

37,094

0.73

Certificates of deposit

7,157,779

78,255

1.46

5,500,105

83,635

2.03

Checking

6,558,232

10,184

0.21

3,256,409

6,347

0.26

Money market

5,225,858

30,968

0.79

2,144,697

22,078

1.38

Total interest-bearing deposits

27,934,066

146,056

0.70

17,700,643

149,154

1.13

Total deposits

37,410,018

146,056

0.52

22,531,914

149,154

0.88

Borrowings:

Short-term borrowings

2,617,891

17,178

0.86

838,750

9,433

1.48

Long-term borrowings

1,527,986

33,968

2.95

1,543,398

38,616

3.32

Total borrowings

4,145,877

51,146

1.63

2,382,148

48,049

2.67

Total interest-bearing liabilities

32,079,943

197,202

0.82

20,082,791

197,203

1.31

Total deposits and borrowings

41,555,895

197,202

0.63

24,914,062

197,203

1.06

Accrued expenses and other liabilities

1,531,759

1,052,709

Total liabilities

43,087,654

25,966,771

Total TCF Financial Corporation shareholders' equity

5,636,933

3,289,946

Non-controlling interest in subsidiaries

25,353

26,558

Total equity

5,662,286

3,316,504

Total liabilities and equity

$

48,749,940

$

29,283,275

Net interest spread (FTE)

3.44%

4.27%

Net interest income (FTE) and net interest margin (FTE)

$

1,165,866

3.48%

$

885,826

4.36%

Reconciliation to Reported Net Interest Income

Net interest income and net interest margin (GAAP)

$

1,157,007

3.45%

$

880,279

4.35%

Adjustments for taxable equivalent interest(1)(3)

Loans

5,558

3,614

Tax-exempt investment securities

3,299

1,933

Total FTE adjustments

8,857

5,547

Net interest income and net interest margin (FTE)

$

1,165,864

3.48%

$

885,826

4.36%

(1)

Interest and yields are presented on a fully tax-equivalent basis.

(2)

Annualized.

(3)

The yield on tax-exempt loans and investment securities available-for-sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.

(4)

Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Quarterly Average Balance Sheets (Unaudited)

Quarter Ended

Change From

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30, 2020

Sep. 30, 2019

(Dollars in thousands)

2020

2020

2020

2019

2019

$

%

$

%

ASSETS:

Federal Home Loan Bank and Federal Reserve Bank stocks

$

361,320

$

401,532

$

454,675

$

388,640

$

230,767

$

(40,212

)

(10.0)%

$

130,553

56.6%

Investment securities held-to-maturity

135,332

132,054

136,277

140,434

143,078

3,278

2.5

(7,746

)

(5.4

)

Investment securities available-for-sale:

Taxable

6,021,643

5,730,762

5,892,006

4,960,520

4,232,878

290,881

5.1

1,788,765

42.3

Tax-exempt

685,652

743,744

773,468

778,994

643,576

(58,092

)

(7.8

)

42,076

6.5

Loans and leases held-for-sale

490,886

356,671

138,058

1,121,326

118,482

134,215

37.6

372,404

N.M.

Loans and leases(1) :

Commercial and industrial

11,740,727

12,713,714

11,827,315

10,955,937

9,290,978

(972,987

)

(7.7

)

2,449,749

26.4

Commercial real estate

9,616,301

9,658,124

9,291,540

9,057,834

6,964,643

(41,823

)

(0.4

)

2,651,658

38.1

Lease financing

2,679,142

2,712,291

2,682,323

2,616,360

2,570,567

(33,149

)

(1.2

)

108,575

4.2

Residential mortgage

5,987,754

6,326,227

6,113,279

6,023,647

4,853,627

(338,473

)

(5.4

)

1,134,127

23.4

Home equity

3,399,468

3,509,107

3,514,278

3,604,153

3,433,830

(109,639

)

(3.1

)

(34,362

)

(1.0

)

Consumer installment

1,386,448

1,459,446

1,517,412

1,546,952

2,389,830

(72,998

)

(5.0

)

(1,003,382

)

(42.0

)

Total loans and

leases(1)

34,809,840

36,378,909

34,946,147

33,804,883

29,503,475

(1,569,069

)

(4.3

)

5,306,365

18.0

Interest-bearing deposits with banks and other

2,572,254

1,587,665

538,971

656,555

933,014

984,589

62.0

1,639,240

175.7

Total interest-earning assets

45,076,927

45,331,337

42,879,602

41,851,352

35,805,270

(254,410

)

(0.6

)

9,271,657

25.9

Other assets

4,462,673

4,384,779

4,105,824

4,268,162

3,289,096

77,894

1.8

1,173,577

35.7

Total assets

$

49,539,600

$

49,716,116

$

46,985,426

$

46,119,514

$

39,094,366

$

(176,516

)

(0.4)%

$

10,445,234

26.7%

LIABILITIES AND EQUITY:

Noninterest-bearing deposits

$

10,654,288

$

9,830,687

$

7,929,933

$

7,968,769

$

6,564,195

$

823,601

8.4%

$

4,090,093

62.3

%

Interest-bearing deposits:

Savings

9,301,198

9,082,184

8,589,815

8,404,460

7,676,165

219,014

2.4

1,625,033

21.2

Certificates of deposit

6,657,697

7,491,502

7,329,632

7,825,573

7,320,720

(833,805

)

(11.1

)

(663,023

)

(9.1

)

Checking

7,029,914

6,649,288

5,990,309

5,891,566

4,805,843

380,626

5.7

2,224,071

46.3

Money market

5,501,747

5,380,547

4,792,248

4,463,476

3,490,922

121,200

2.3

2,010,825

57.6

Total interest-bearing deposits

28,490,556

28,603,521

26,702,004

26,585,075

23,293,650

(112,965

)

(0.4

)

5,196,906

22.3

Total deposits

39,144,844

38,434,208

34,631,937

34,553,844

29,857,845

710,636

1.8

9,286,999

31.1

Borrowings:

Short-term borrowings

2,153,030

3,016,490

2,689,262

2,585,682

1,884,228

(863,460

)

(28.6

)

268,802

14.3

Long-term borrowings

910,149

1,072,394

2,608,204

1,739,852

1,472,150

(162,245

)

(15.1

)

(562,001

)

(38.2

)

Total borrowings

3,063,179

4,088,884

5,297,466

4,325,534

3,356,378

(1,025,705

)

(25.1

)

(293,199

)

(8.7

)

Total interest-bearing liabilities

31,553,735

32,692,405

31,999,470

30,910,609

26,650,028

(1,138,670

)

(3.5

)

4,903,707

18.4

Total deposits and borrowings

42,208,023

42,523,092

39,929,403

38,879,378

33,214,223

(315,069

)

(0.7

)

8,993,800

27.1

Accrued expenses and other liabilities

1,633,850

1,534,769

1,425,536

1,549,017

1,197,014

99,081

6.5

436,836

36.5

Total liabilities

43,841,873

44,057,861

41,354,939

40,428,395

34,411,237

(215,988

)

(0.5

)

9,430,636

27.4

Total TCF Financial Corporation shareholders' equity

5,675,089

5,630,133

5,605,159

5,667,436

4,657,613

44,956

0.8

1,017,476

21.8

Non-controlling interest in subsidiaries

22,638

28,122

25,328

23,683

25,516

(5,484

)

(19.5

)

(2,878

)

(11.3

)

Total equity

5,697,727

5,658,255

5,630,487

5,691,119

4,683,129

39,472

0.7

1,014,598

21.7

Total liabilities and equity

$

49,539,600

$

49,716,116

$

46,985,426

$

46,119,514

$

39,094,366

$

(176,516

)

(0.4)%

$

10,445,234

26.7

%

N.M. Not Meaningful

(1)

Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Quarterly Yields and Rates(1)(2) (Unaudited)

Quarter Ended

Change From

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2020

2020

2020

2019

2019

2020

2019

ASSETS:

Federal Home Loan Bank and Federal Reserve Bank stocks

3.27

%

4.38

%

2.79

%

3.24

%

1.39

%

(111)

bps

188

bps

Investment securities held-to-maturity

1.69

0.21

1.64

2.53

1.68

148

1

Investment securities available-for-sale:

Taxable

2.33

2.26

2.74

2.85

2.88

7

(55)

Tax-exempt(3)

2.90

2.81

2.85

2.84

2.66

9

24

Loans and leases held-for-sale

3.13

3.73

4.53

5.58

4.74

(60)

(161)

Loans and leases(3)

Commercial and industrial

4.30

4.41

5.42

5.63

6.25

(11)

(195)

Commercial real estate

3.90

3.91

5.01

5.38

5.45

(1)

(155)

Lease financing

4.88

4.99

5.09

5.11

5.11

(11)

(23)

Residential mortgage

3.86

3.93

4.02

4.05

4.23

(7)

(37)

Home equity

5.09

5.19

5.85

5.93

6.49

(10)

(140)

Consumer installment

5.04

4.88

5.23

4.97

5.73

16

(69)

Total loans and leases(3)

4.26

4.33

5.08

5.24

5.62

(7)

(136)

Interest-bearing deposits with banks and other

0.16

0.30

1.72

2.07

2.44

(14)

(228)

Total interest-earning assets

3.72

3.88

4.64

4.85

5.11

(16)

(139)

LIABILITIES:

Interest-bearing deposits: