TCF TCF Financial Corporation

Adjusted diluted earnings per common share of $0.46,(1) excluding 4 cents per share after-tax impact of merger-related expenses

TCF Financial Corporation (NYSE: TCF):

First Quarter Observations

• Diluted earnings per common share of 42 cents, up 7.7% from the first quarter of 2018; adjusted diluted earnings per common share of 46 cents(1), up 17.9% from the first quarter of 2018
• Revenue of $357.9 million, up 0.7% from the first quarter of 2018
• Net interest income growth of 3.2% from the first quarter of 2018
• Non-interest expense up 2.9% from the first quarter of 2018; non-interest expense (excluding merger-related expenses of $9.5 million), down 1.0%(2) from the first quarter of 2018
• Reported efficiency ratio of 70.70%, up 149 basis points from the first quarter of 2018; adjusted efficiency ratio of 68.06%(1), down 115 basis points from the first quarter of 2018
• Average interest-earning asset growth of 3.6% from the first quarter of 2018
• Period-end loans and leases of $19.4 billion, flat from March 31, 2018; period-end loans and leases excluding auto finance up 6.9%(3) from March 31, 2018
• Net charge-off rate of 0.39%; net charge-off rate excluding auto finance net charge-offs of 0.20%(1)
• Non-performing assets of $121.6 million, down 15.3% from March 31, 2018
• Return on average common equity ("ROACE") of 11.40%; return on average tangible common equity ("ROATCE") of 12.42%(1); adjusted ROATCE of 13.72%(1)

Summary of Financial Results   At or For the Quarter Ended   Change From Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, Dec. 31,   Mar. 31, (Dollars in thousands, except per share data)   2019   2018   2018   2018   2018 2018   2018 Net income attributable to TCF $ 70,494 $ 85,652 $ 86,196 $ 58,749 $ 73,761 (17.7 ) % (4.4 ) % Net interest income 250,907 248,888 249,121 250,799 243,199 0.8 3.2 Basic earnings per common share 0.42 0.51 0.51 0.34 0.39 (17.6 ) 7.7 Diluted earnings per common share 0.42 0.51 0.51 0.34 0.39 (17.6 ) 7.7 Adjusted diluted earnings per common share(1) 0.46 0.51 0.51 0.49 0.39 (9.8 ) 17.9   Financial Ratios Return on average assets(4) 1.22 % 1.52 % 1.55 % 1.08 % 1.33 % (30 ) bps (11 ) bps ROACE(4) 11.40 14.30 14.44 9.72 11.23 (290 ) 17 Adjusted ROACE(1)(4) 12.61 14.30 14.44 14.11 11.23 (169 ) 138 ROATCE(1)(4) 12.42 15.59 15.76 10.65 12.26 (317 ) 16 Adjusted ROATCE(1)(4) 13.72 15.59 15.76 15.39 12.26 (187 ) 146 Net interest margin(4) 4.56 4.60 4.66 4.67 4.59 (4 ) (3 ) Net charge-offs as a percentage of average loans and leases(4) 0.39 0.46 0.15 0.27 0.29 (7 ) 10 Non-performing assets as a percentage of total loans and leases and other real estate owned 0.63 0.65 0.59 0.54 0.74 (2 ) (11 ) Efficiency ratio 70.70 66.30 67.41 74.55 69.21 440 149 Adjusted efficiency ratio(1)   68.06     66.30     67.41     65.78     69.21     176       (115 )   (1)   See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables. (2) Calculated by subtracting merger-related expenses of $9.5 million from non-interest expense of $253.1 million for the first quarter of 2019, compared to non-interest expense of $246.0 million for the first quarter of 2018. (3) Calculated by subtracting auto finance loans of $1.7 billion and $2.8 billion at March 31, 2019 and 2018, respectively, from total loans and leases of $19.4 billion at March 31, 2019 and 2018. (4) Annualized

TCF Financial Corporation ("TCF" or the "Company") (NYSE: TCF) today reported net income of $70.5 million for the first quarter of 2019, compared with $73.8 million for the first quarter of 2018 and $85.7 million for the fourth quarter of 2018. Diluted earnings per common share was 42 cents for the first quarter of 2019 (inclusive of a 4 cents per common share after-tax impact of merger-related expenses), compared with 39 cents for the first quarter of 2018 and 51 cents for the fourth quarter of 2018. Adjusted diluted earnings per common share was 46 cents for the first quarter of 2019, an increase of 17.9% from the first quarter of 2018 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

"Our strong first quarter performance was highlighted by higher return on capital compared to a year ago and disciplined expense management," said Craig R. Dahl, chairman and chief executive officer. "Our results were supported by loan and lease growth excluding the run-off of our auto finance portfolio, and growth in core checking and savings deposit balances, while we controlled expense growth excluding merger-related expenses. We continue to see a positive business outlook for the year, with strong organic growth prospects across many of our businesses and we are well underway in integration planning work to prepare for our proposed merger of equals with Chemical Financial Corporation."

Net Interest Income and Net Interest Margin

Net interest income was $250.9 million for the first quarter of 2019, an increase of $7.7 million, or 3.2%, from the first quarter of 2018 and an increase of $2.0 million, or 0.8%, from the fourth quarter of 2018. Net interest margin was 4.56% for the first quarter of 2019, down 3 basis points from the first quarter of 2018 and down 4 basis points from the fourth quarter of 2018. The increase in net interest income from the first quarter of 2018 was primarily due to increased average yields and higher average balances in the variable- and adjustable-rate loan portfolios, higher average balances of fixed-rate consumer real estate loans and debt securities available for sale, partially offset by increased cost of funds and lower average balances of auto finance loans. The increase in net interest income from the fourth quarter of 2018 was primarily due to seasonally higher average balances of inventory finance loans and higher average balances of fixed-rate consumer real estate loans, partially offset by increased cost of funds and lower average balances of auto finance loans. The decreases in net interest margin from both periods were primarily due to higher average rates on deposits, partially offset by higher average yields on the variable- and adjustable-rate loan portfolios. The decreases were also driven by the reinvestment of the auto finance portfolio run-off into available for sale mortgage-backed debt securities and fixed-rate consumer real estate loans.

Non-interest Income

Non-interest income was $107.0 million for the first quarter of 2019, a decrease of $5.2 million, or 4.6%, from the first quarter of 2018 and a decrease of $21.1 million, or 16.5%, from the fourth quarter of 2018. The decrease from the first quarter of 2018 was primarily due to a decrease in servicing fee income driven by continued run-off in the auto finance serviced for others portfolio and a decrease in gains on sales of loans. The decrease from the fourth quarter of 2018 was primarily due to a decrease in leasing and equipment finance non-interest income driven by customer-driven activity and a decrease in fees and service charges.

Non-interest Expense

Non-interest expense was $253.1 million for the first quarter of 2019, an increase of $7.1 million, or 2.9%, from the first quarter of 2018 and an increase of $3.1 million, or 1.2%, from the fourth quarter of 2018. The increases in non-interest expense from both periods were primarily due to merger-related expenses of $9.5 million for the proposed merger with Chemical Financial Corporation. Non-interest expense excluding merger-related expenses was $243.6 million for the first quarter of 2019, a decrease of $2.4 million, or 1.0%, from the first quarter of 2018 and a decrease of $6.3 million, or 2.5%, from the fourth quarter of 2018 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The decreases in non-interest expense excluding merger-related expenses from both periods were primarily due to decreases in compensation and employee benefits expense. The decrease in compensation and employee benefits expense from the fourth quarter of 2018 was primarily due to a large medical claim of $6.8 million recorded in the fourth quarter of 2018.

Credit Quality

Provision for credit losses The provision for credit losses was $10.1 million for the first quarter of 2019, a decrease of $1.2 million, or 11.0%, from the first quarter of 2018 and a decrease of $8.8 million, or 46.4%, from the fourth quarter of 2018. The decreases from both periods were primarily due to decreases in the provision for credit losses attributable to the commercial portfolio. The decrease from the first quarter of 2018 was partially offset by an increase in the provision for credit losses attributable to the inventory finance portfolio.

Net charge-off rate The annualized net charge-off rate was 0.39% for the first quarter of 2019, up 10 basis points from the first quarter of 2018 and down 7 basis points from the fourth quarter of 2018. The increase from the first quarter of 2018 was primarily due to increased net charge-offs in the commercial, inventory finance and leasing and equipment finance portfolios, partially offset by decreased net charge-offs in the consumer real estate portfolio. The decrease from the fourth quarter of 2018 was primarily due to decreased net charge-offs in the inventory finance and commercial portfolios. The annualized net charge-off rate excluding auto finance net charge-offs was 0.20% for the first quarter of 2019, up 11 basis points from the first quarter of 2018 and down 8 basis points from the fourth quarter of 2018 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

Over 60-day delinquency rate The over 60-day delinquency rate, excluding non-accrual loans and leases, was 0.12% at March 31, 2019, up 2 basis points from the March 31, 2018 rate and down 3 basis points from the December 31, 2018 rate. The increase from March 31, 2018 was primarily due to higher delinquencies in the leasing and equipment finance portfolio. The decrease from December 31, 2018 was primarily due to lower delinquencies in the auto finance portfolio.

Non-performing assets Non-performing assets, consisting of non-accrual loans and leases and other real estate owned, were $121.6 million at March 31, 2019, a decrease of $22.0 million, or 15.3%, from March 31, 2018 and a decrease of $1.7 million, or 1.4%, from December 31, 2018. The decrease from March 31, 2018 was primarily due to a decrease in consumer real estate non-accrual loans. The decrease from December 31, 2018 was primarily due to decreases in commercial and inventory finance non-accrual loans, partially offset by increases in consumer real estate and leasing and equipment finance non-accrual loans and leases.

Balance Sheet

Average debt securities held to maturity and debt securities available for sale The total average debt securities portfolio was $2.8 billion for the first quarter of 2019, an increase of $823.1 million, or 41.9%, from the first quarter of 2018 and an increase of $67.3 million, or 2.5%, from the fourth quarter of 2018. The increases from both periods were primarily due to purchases of available for sale mortgage-backed debt securities, partially offset by sales of available for sale obligations of states and political subdivisions debt securities.

Average loans and leases Average loans and leases were $19.2 billion for the first quarter of 2019, a decrease of $67.2 million, or 0.3%, from the first quarter of 2018 and an increase of $631.6 million, or 3.4%, from the fourth quarter of 2018. The decrease from the first quarter of 2018 was primarily due to run-off of the auto finance portfolio, partially offset by increases in the consumer real estate, inventory finance and commercial loan portfolios. The increase from the fourth quarter of 2018 was primarily due to increases in the inventory finance and consumer real estate loan portfolios, partially offset by run-off of the auto finance portfolio. Average loans and leases excluding auto finance were $17.3 billion for the first quarter of 2019, an increase of $1.1 billion, or 6.8%, from the first quarter of 2018 and an increase of $912.5 million, or 5.6%, from the fourth quarter of 2018 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

Average deposits Average deposits were $18.7 billion for the first quarter of 2019, an increase of $445.1 million, or 2.4%, from the first quarter of 2018 and an increase of $277.4 million, or 1.5%, from the fourth quarter of 2018. The increases from both periods were primarily due to increases in savings account balances, partially offset by decreases in certificates of deposit balances.

Capital TCF continues to maintain strong capital ratios, with a common equity Tier 1 capital ratio of 10.79%. TCF did not repurchase any shares of its common stock during the quarter and had the authority to repurchase $78.1 million in aggregate value of shares at March 31, 2019, pursuant to its share repurchase program.

 

TCF is a Wayzata, Minnesota-based national bank holding company. As of March 31, 2019, TCF had $24.4 billion in total assets and 312 bank branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona and South Dakota providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and equipment finance business in all 50 states and commercial inventory finance business in all 50 states and Canada. For more information about TCF, please visit http://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 Company's businesses and their respective markets, such as projections of future performance, targets, guidance, statements of the Company's plans and objectives, forecasts of market trends and other matters are forward-looking statements based on the Company'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, including to reflect events or circumstances after such date or to reflect the occurrence of anticipated or unanticipated events.

Certain factors could cause the Company'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 Company's Annual Report on Form 10-K for the year ended December 31, 2018 under the heading "Risk Factors" and any other cautionary statements, written or oral, which may be made or referred to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

Use of Non-GAAP Financial Measures

Management uses the adjusted diluted earnings per common share, adjusted ROACE, ROATCE, adjusted ROATCE, adjusted efficiency ratio, net charge-off rate excluding auto finance, tangible book value per common share and tangible common equity to tangible assets internally to measure performance and believes that these financial measures not recognized under generally accepted accounting principles in the United States ("GAAP") (i.e. non-GAAP) provide meaningful information to investors that will permit them to assess the Company's capital and ability to withstand unexpected market or economic conditions and to assess the performance of the Company 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 as management believes it is useful to investors in understanding TCF's business and operating results. In addition, TCF adjusts certain results to exclude auto finance because TCF no longer originates auto finance loans, and therefore management believes it is useful to investors in understanding TCF's business and operating results.

These non-GAAP financial measures are not defined by GAAP and other entities may calculate them differently than TCF does. Non-GAAP financial measures have inherent limitations and are not required to be uniformly applied. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, 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 stockholders.

  TCF FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Financial Condition (Unaudited)               Change From (Dollars in thousands) Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, 2018   Mar. 31, 2018   2019   2018   2018   2018   2018 $   %   $   % ASSETS:     Cash and due from banks $ 463,822 $ 587,057 $ 569,968 $ 581,876 $ 588,893 $ (123,235 ) (21.0 )% $ (125,071 ) (21.2 )% Investments 103,644 91,654 80,672 95,661 91,661 11,990 13.1 11,983 13.1 Debt securities held to maturity 148,024 148,852 152,881 155,962 158,099 (828 ) (0.6 ) (10,075 ) (6.4 ) Debt securities available for sale 2,945,342 2,470,065 2,379,546 2,249,784 1,954,246 475,277 19.2 991,096 50.7 Loans and leases held for sale 64,468 90,664 114,198 291,871 50,706 (26,196 ) (28.9 ) 13,762 27.1 Loans and leases: Consumer real estate: First mortgage lien 2,480,750 2,444,380 1,960,756 1,800,885 1,878,441 36,370 1.5 602,309 32.1 Junior lien   2,872,807     2,965,960     2,940,701     2,830,029     2,843,221   (93,153 ) (3.1 ) 29,586   1.0 Total consumer real estate 5,353,557 5,410,340 4,901,457 4,630,914 4,721,662 (56,783 ) (1.0 ) 631,895 13.4 Commercial 3,884,106 3,851,303 3,741,164 3,706,401 3,678,181 32,803 0.9 205,925 5.6 Leasing and equipment finance 4,674,309 4,699,740 4,601,887 4,648,049 4,666,239 (25,431 ) (0.5 ) 8,070 0.2 Inventory finance 3,749,146 3,107,356 2,880,404 3,005,165 3,457,855 641,790 20.7 291,291 8.4 Auto finance 1,704,614 1,982,277 2,275,134 2,603,260 2,839,363 (277,663 ) (14.0 ) (1,134,749 ) (40.0 ) Other   17,943     21,295     21,107     20,957     19,854   (3,352 ) (15.7 ) (1,911 ) (9.6 ) Total loans and leases 19,383,675 19,072,311 18,421,153 18,614,746 19,383,154 311,364 1.6 521 — Allowance for loan and lease losses   (147,972 )   (157,446 )   (160,621 )   (165,619 )   (167,703 ) 9,474   6.0 19,731   11.8 Net loans and leases 19,235,703 18,914,865 18,260,532 18,449,127 19,215,451 320,838 1.7 20,252 0.1 Premises and equipment, net 429,711 427,534 429,648 430,956 427,497 2,177 0.5 2,214 0.5 Goodwill, net 154,757 154,757 154,757 154,757 154,757 — — — — Other assets   873,244     814,164     762,583     774,468     743,742   59,080   7.3 129,502   17.4 Total assets   $ 24,418,715     $ 23,699,612     $ 22,904,785     $ 23,184,462     $ 23,385,052   $ 719,103     3.0     $ 1,033,663     4.4   LIABILITIES AND EQUITY: Deposits: Checking $ 6,621,261 $ 6,381,327 $ 6,382,667 $ 6,408,174 $ 6,541,409 $ 239,934 3.8 % $ 79,852 1.2 % Savings 6,442,544 6,122,257 5,737,144 5,570,979 5,551,155 320,287 5.2 891,389 16.1 Money market 1,468,308 1,609,422 1,504,952 1,562,008 1,609,472 (141,114 ) (8.8 ) (141,164 ) (8.8 ) Certificates of deposit   4,491,998     4,790,680     4,871,748     4,822,112     4,995,636   (298,682 ) (6.2 ) (503,638 ) (10.1 ) Total deposits 19,024,111 18,903,686 18,496,511 18,363,273 18,697,672 120,425 0.6 326,439 1.7 Borrowings: Short-term borrowings 355,992 — 2,324 761 775 355,992 N.M. 355,217 N.M. Long-term borrowings   1,411,426     1,449,472     1,168,400     1,554,569     1,457,976   (38,046 ) (2.6 ) (46,550 ) (3.2 ) Total borrowings 1,767,418 1,449,472 1,170,724 1,555,330 1,458,751 317,946 21.9 308,667 21.2 Accrued expenses and other liabilities   981,341     790,194     709,538     761,281     677,679   191,147   24.2 303,662   44.8 Total liabilities   21,772,870     21,143,352     20,376,773     20,679,884     20,834,102   629,518   3.0 938,768   4.5 Equity: Preferred stock 169,302 169,302 169,302 169,302 169,302 — — — — Common stock 1,733 1,736 1,736 1,735 1,725 (3 ) (0.2 ) 8 0.5 Additional paid-in capital 875,797 885,089 882,321 877,364 878,096 (9,292 ) (1.0 ) (2,299 ) (0.3 ) Retained earnings, subject to certain restrictions 1,810,701 1,766,994 1,708,410 1,649,449 1,618,041 43,707 2.5 192,660 11.9 Accumulated other comprehensive income (loss) 5,481 (33,138 ) (65,259 ) (52,811 ) (46,851 ) 38,619 N.M. 52,332 N.M. Treasury stock at cost and other   (246,621 )   (252,182 )   (189,652 )   (164,107 )   (97,800 ) 5,561   2.2 (148,821 ) (152.2 ) Total TCF Financial Corporation stockholders' equity 2,616,393 2,537,801 2,506,858 2,480,932 2,522,513 78,592 3.1 93,880 3.7 Non-controlling interest in subsidiaries   29,452     18,459     21,154     23,646     28,437   10,993   59.6 1,015   3.6 Total equity   2,645,845     2,556,260     2,528,012     2,504,578     2,550,950   89,585   3.5 94,895   3.7 Total liabilities and equity   $ 24,418,715     $ 23,699,612     $ 22,904,785     $ 23,184,462     $ 23,385,052     $ 719,103     3.0     $ 1,033,663     4.4  

N.M. Not Meaningful

  TCF FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)     Quarter Ended   Change From (Dollars in thousands) Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, Dec. 31, 2018   Mar. 31, 2018   2019   2018   2018   2018   2018 $   %   $   % Interest income:     Loans and leases $ 279,594 $ 270,804 $ 264,678 $ 269,280 $ 260,375 $ 8,790 3.2 % $ 19,219 7.4 % Debt securities available for sale 18,815 17,097 14,838 12,516 10,123 1,718 10.0 8,692 85.9 Debt securities held to maturity 535 965 988 998 1,019 (430 ) (44.6 ) (484 ) (47.5 ) Loans held for sale and other   4,301     4,631     6,678     3,529     3,745   (330 ) (7.1 ) 556   14.8 Total interest income   303,245     293,497     287,182     286,323     275,262   9,748   3.3 27,983   10.2 Interest expense: Deposits 37,480 33,315 27,335 23,953 22,510 4,165 12.5 14,970 66.5 Borrowings   14,858     11,294     10,726     11,571     9,553   3,564   31.6 5,305   55.5 Total interest expense   52,338     44,609     38,061     35,524     32,063   7,729   17.3 20,275   63.2 Net interest income 250,907 248,888 249,121 250,799 243,199 2,019 0.8 7,708 3.2 Provision for credit losses   10,122     18,894     2,270     14,236     11,368   (8,772 ) (46.4 ) (1,246 ) (11.0 ) Net interest income after provision for credit losses   240,785     229,994     246,851     236,563     231,831   10,791   4.7 8,954   3.9 Non-interest income: Leasing and equipment finance 41,139 55,311 45,045 42,904 41,847 (14,172 ) (25.6 ) (708 ) (1.7 ) Fees and service charges 31,324 36,206 32,574 32,670 30,751 (4,882 ) (13.5 ) 573 1.9 Card revenue 14,243 15,078 15,065 14,962 13,759 (835 ) (5.5 ) 484 3.5 ATM revenue 4,440 5,054 5,053 4,933 4,650 (614 ) (12.1 ) (210 ) (4.5 ) Gains on sales of loans, net 7,972 8,419 8,764 7,192 9,123 (447 ) (5.3 ) (1,151 ) (12.6 ) Servicing fee income 5,110 5,523 6,032 7,484 8,295 (413 ) (7.5 ) (3,185 ) (38.4 ) Gains (losses) on debt securities, net 451 167 94 24 63 284 170.1 388 N.M. Other   2,347     2,375     3,818     3,934     3,716   (28 ) (1.2 ) (1,369 ) (36.8 ) Total non-interest income   107,026     128,133     116,445     114,103     112,204   (21,107 ) (16.5 ) (5,178 ) (4.6 ) Non-interest expense: Compensation and employee benefits 121,557 129,521 123,127 120,575 123,840 (7,964 ) (6.1 ) (2,283 ) (1.8 ) Occupancy and equipment 41,737 42,250 42,337 40,711 40,514 (513 ) (1.2 ) 1,223 3.0 Lease financing equipment depreciation 19,256 19,085 19,525 17,945 17,274 171 0.9 1,982 11.5 Foreclosed real estate and repossessed assets, net 4,630 4,396 3,881 3,857 4,916 234 5.3 (286 ) (5.8 ) Merger-related expenses 9,458 — — — — 9,458 N.M. 9,458 N.M. Other   56,437     54,706     57,553     88,951     59,436   1,731   3.2 (2,999 ) (5.0 ) Total non-interest expense   253,075     249,958     246,423     272,039     245,980   3,117   1.2 7,095   2.9 Income before income tax expense 94,736 108,169 116,873 78,627 98,055 (13,433 ) (12.4 ) (3,319 ) (3.4 ) Income tax expense   21,287     20,013     28,034     16,418     21,631   1,274   6.4 (344 ) (1.6 ) Income after income tax expense 73,449 88,156 88,839 62,209 76,424 (14,707 ) (16.7 ) (2,975 ) (3.9 ) Income attributable to non-controlling interest   2,955     2,504     2,643     3,460     2,663   451   18.0 292   11.0 Net income attributable to TCF Financial Corporation 70,494 85,652 86,196 58,749 73,761 (15,158 ) (17.7 ) (3,267 ) (4.4 ) Preferred stock dividends 2,493 2,494 2,494 2,494 4,106 (1 ) — (1,613 ) (39.3 ) Impact of preferred stock redemption   —     —     —     —     3,481   —   — (3,481 ) (100.0 ) Net income available to common stockholders   $ 68,001     $ 83,158     $ 83,702     $ 56,255     $ 66,174     $ (15,157 )   (18.2 )   $ 1,827     2.8  

N.M. Not Meaningful

  TCF FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Average Balance Sheets, Yields and Rates (Unaudited)     Quarter Ended March 31, 2019   2018 Average     Yields and   Average     Yields and (Dollars in thousands)   Balance   Interest(1)   Rates(1)(2)   Balance   Interest(1)   Rates(1)(2) ASSETS: Investments and other $ 366,691 $ 3,481 3.82 % $ 332,319 $ 2,776 3.38 % Debt securities held to maturity 147,556 535 1.45 159,139 1,019 2.56 Debt securities available for sale: Taxable 2,121,196 16,131 3.04 981,843 5,813 2.37 Tax-exempt(3) 516,995 3,397 2.63 821,642 5,456 2.66 Loans and leases held for sale 55,204 820 6.01 63,095 969 6.22 Loans and leases:(4) Consumer real estate: Fixed-rate 2,352,758 29,887 5.12 1,786,636 24,613 5.58 Variable- and adjustable-rate   3,041,252     51,687   6.89 3,012,036     45,881   6.18 Total consumer real estate 5,394,010 81,574 6.12 4,798,672 70,494 5.96 Commercial: Fixed-rate 817,250 9,064 4.50 931,275 10,597 4.61 Variable- and adjustable-rate   3,012,206     43,532   5.86 2,669,745     33,160   5.04 Total commercial 3,829,456 52,596 5.57 3,601,020 43,757 4.93 Leasing and equipment finance 4,655,705 59,221 5.09 4,690,868 56,407 4.81 Inventory finance 3,454,283 62,865 7.38 3,128,290 51,195 6.64 Auto finance 1,841,130 24,215 5.33 3,020,187 39,285 5.28 Other   11,682     133   4.61 14,446     147   4.16 Total loans and leases   19,186,266     280,604   5.91 19,253,483     261,285   5.49 Total interest-earning assets 22,393,908 304,968 5.50 21,611,521 277,318 5.19 Other assets   1,713,033   1,453,742   Total assets   $ 24,106,941   $ 23,065,263   LIABILITIES AND EQUITY: Non-interest bearing deposits $ 3,919,746 $ 3,745,745 Interest-bearing deposits: Checking 2,457,767 387 0.06 2,461,548 113 0.02 Savings 6,253,992 10,670 0.69 5,395,669 3,165 0.24 Money market 1,490,631 4,453 1.21 1,698,064 2,409 0.58 Certificates of deposit   4,622,120     21,970   1.93 4,998,133     16,823   1.36 Total interest-bearing deposits   14,824,510     37,480   1.02 14,553,414     22,510   0.63 Total deposits   18,744,256     37,480   0.81 18,299,159     22,510   0.50 Borrowings: Short-term borrowings 293,499 1,957 2.67 3,952 19 1.99 Long-term borrowings   1,500,832     12,901   3.44 1,423,075     9,534   2.70 Total borrowings   1,794,331     14,858   3.31 1,427,027     9,553   2.70 Total interest-bearing liabilities   16,618,841     52,338   1.27 15,980,441     32,063   0.81 Total deposits and borrowings 20,538,587 52,338 1.03 19,726,186 32,063 0.66 Accrued expenses and other liabilities   989,104   758,157   Total liabilities   21,527,691   20,484,343   Total TCF Financial Corporation stockholders' equity 2,554,729 2,557,729 Non-controlling interest in subsidiaries   24,521   23,191   Total equity   2,579,250   2,580,920   Total liabilities and equity   $ 24,106,941   $ 23,065,263   Net interest income and margin       $ 252,630     4.56         $ 245,255     4.59   (1)   Interest and yields are presented on a fully tax-equivalent basis. (2) Annualized (3) The yield on tax-exempt debt securities available for sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%. (4) Average balances of loans and leases include non-accrual loans and leases and are presented net of unearned income.   TCF FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Quarterly Average Balance Sheets (Unaudited)     Quarter Ended   Change From Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, Dec. 31, 2018   Mar. 31, 2018 (Dollars in thousands)   2019   2018   2018   2018   2018 $   %   $   % ASSETS:     Investments and other $ 366,691 $ 330,359 $ 306,257 $ 309,120 $ 332,319 $ 36,332 11.0 % $ 34,372 10.3 % Debt securities held to maturity 147,556 150,016 153,652 155,779 159,139 (2,460 ) (1.6 ) (11,583 ) (7.3 ) Debt securities available for sale: Taxable 2,121,196 1,779,654 1,525,665 1,262,642 981,843 341,542 19.2 1,139,353 116.0 Tax-exempt 516,995 788,806 823,854 828,131 821,642 (271,811 ) (34.5 ) (304,647 ) (37.1 ) Loans and leases held for sale 55,204 86,169 216,669 45,525 63,095 (30,965 ) (35.9 ) (7,891 ) (12.5 ) Loans and leases:(1) Consumer real estate: Fixed-rate 2,352,758 1,962,804 1,694,661 1,715,289 1,786,636 389,954 19.9 566,122 31.7 Variable- and adjustable-rate   3,041,252     3,067,216     3,002,225     3,026,310     3,012,036   (25,964 ) (0.8 ) 29,216   1.0 Total consumer real estate 5,394,010 5,030,020 4,696,886 4,741,599 4,798,672 363,990 7.2 595,338 12.4 Commercial: Fixed-rate 817,250 815,626 856,324 900,462 931,275 1,624 0.2 (114,025 ) (12.2 ) Variable- and adjustable-rate   3,012,206     2,932,739     2,921,471     2,802,059     2,669,745   79,467   2.7 342,461   12.8 Total commercial 3,829,456 3,748,365 3,777,795 3,702,521 3,601,020 81,091 2.2 228,436 6.3 Leasing and equipment finance 4,655,705 4,616,715 4,624,968 4,639,703 4,690,868 38,990 0.8 (35,163 ) (0.7 ) Inventory finance 3,454,283 3,024,961 2,866,460 3,299,996 3,128,290 429,322 14.2 325,993 10.4 Auto finance 1,841,130 2,121,969 2,435,868 2,695,943 3,020,187 (280,839 ) (13.2 ) (1,179,057 ) (39.0 ) Other   11,682     12,599     13,547     13,845     14,446   (917 ) (7.3 ) (2,764 ) (19.1 ) Total loans and leases   19,186,266     18,554,629     18,415,524     19,093,607     19,253,483   631,637   3.4 (67,217 ) (0.3 ) Total interest-earning assets 22,393,908 21,689,633 21,441,621 21,694,804 21,611,521 704,275 3.2 782,387 3.6 Other assets   1,713,033     1,464,620     1,462,783     1,430,621     1,453,742   248,413   17.0 259,291   17.8 Total assets   $ 24,106,941     $ 23,154,253     $ 22,904,404     $ 23,125,425     $ 23,065,263   $ 952,688     4.1     $ 1,041,678     4.5   LIABILITIES AND EQUITY: Non-interest bearing deposits $ 3,919,746 $ 3,873,023 $ 3,874,421 $ 3,879,048 $ 3,745,745 $ 46,723 1.2 % $ 174,001 4.6 % Interest-bearing deposits: Checking 2,457,767 2,403,370 2,427,288 2,460,709 2,461,548 54,397 2.3 (3,781 ) (0.2 ) Savings 6,253,992 5,922,724 5,620,161 5,542,565 5,395,669 331,268 5.6 858,323 15.9 Money market 1,490,631 1,449,531 1,496,223 1,572,560 1,698,064 41,100 2.8 (207,433 ) (12.2 ) Certificates of deposit   4,622,120     4,818,211     4,868,286     4,909,422     4,998,133   (196,091 ) (4.1 ) (376,013 ) (7.5 ) Total interest-bearing deposits   14,824,510     14,593,836     14,411,958     14,485,256     14,553,414   230,674   1.6 271,096   1.9 Total deposits   18,744,256     18,466,859     18,286,379     18,364,304     18,299,159   277,397   1.5 445,097   2.4 Borrowings: Short-term borrowings 293,499 2,738 3,357 3,116 3,952 290,761 N.M. 289,547 N.M. Long-term borrowings   1,500,832     1,344,228     1,351,585     1,531,389     1,423,075   156,604   11.7 77,757   5.5 Total borrowings   1,794,331     1,346,966     1,354,942     1,534,505     1,427,027   447,365   33.2 367,304   25.7 Total interest-bearing liabilities   16,618,841     15,940,802     15,766,900     16,019,761     15,980,441   678,039   4.3 638,400   4.0 Total deposits and borrowings 20,538,587 19,813,825 19,641,321 19,898,809 19,726,186 724,762 3.7 812,401 4.1 Accrued expenses and other liabilities   989,104     822,558     751,100     714,488     758,157   166,546   20.2 230,947   30.5 Total liabilities   21,527,691     20,636,383     20,392,421     20,613,297     20,484,343   891,308   4.3 1,043,348   5.1 Total TCF Financial Corporation stockholders' equity 2,554,729 2,495,952 2,488,435 2,483,474 2,557,729 58,777 2.4 (3,000 ) (0.1 ) Non-controlling interest in subsidiaries   24,521     21,918     23,548     28,654     23,191   2,603   11.9 1,330   5.7 Total equity   2,579,250     2,517,870     2,511,983     2,512,128     2,580,920   61,380   2.4 (1,670 ) (0.1 ) Total liabilities and equity   $ 24,106,941     $ 23,154,253     $ 22,904,404     $ 23,125,425     $ 23,065,263     $ 952,688     4.1     $ 1,041,678     4.5   N.M. Not Meaningful (1)   Average balances of loans and leases include non-accrual loans and leases and are presented net of unearned income.   TCF FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Quarterly Yields and Rates(1)(2) (Unaudited)     Quarter Ended   Change From Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, Dec. 31,   Mar. 31,     2019   2018   2018   2018   2018 2018   2018 ASSETS: Investments and other 3.82 % 3.90 % 4.01 % 3.71 % 3.38 % (8 ) bps 44 bps Debt securities held to maturity 1.45 2.58 2.57 2.56 2.56 (113 ) (111 ) Debt securities available for sale: Taxable 3.04 2.91 2.76 2.59 2.37 13 67 Tax-exempt(3) 2.63 2.66 2.66 2.66 2.66 (3 ) (3 ) Loans and leases held for sale 6.01 6.40 6.57 5.93 6.22 (39 ) (21 ) Loans and leases: Consumer real estate: Fixed-rate 5.12 5.33 5.46 5.52 5.58 (21 ) (46 ) Variable- and adjustable-rate 6.89 6.77 6.57 6.41 6.18 12 71 Total consumer real estate 6.12 6.21 6.17 6.09 5.96 (9 ) 16 Commercial: Fixed-rate 4.50 4.51 4.55 4.49 4.61 (1 ) (11 ) Variable- and adjustable-rate 5.86 5.65 5.45 5.45 5.04 21 82 Total commercial 5.57 5.40 5.25 5.21 4.93 17 64 Leasing and equipment finance 5.09 5.11 5.00 4.93 4.81 (2 ) 28 Inventory finance 7.38 7.11 7.16 6.94 6.64 27 74 Auto finance 5.33 5.39 5.36 5.30 5.28 (6 ) 5 Other 4.61 4.55 4.25 4.10 4.16 6 45 Total loans and leases 5.91 5.82 5.73 5.67 5.49 9 42   Total interest-earning assets 5.50 5.42 5.36 5.33 5.19 8 31   LIABILITIES: Interest-bearing deposits: Checking 0.06 0.04 0.04 0.02 0.02 2 4 Savings 0.69 0.54 0.35 0.27 0.24 15 45 Money market 1.21 0.99 0.78 0.67 0.58 22 63 Certificates of deposit 1.93 1.76 1.56 1.43 1.36 17 57 Total interest-bearing deposits 1.02 0.91 0.75 0.66 0.63 11 39 Total deposits 0.81 0.72 0.59 0.52 0.50 9 31 Borrowings: Short-term borrowings 2.67 2.76 2.46 2.33 1.99 (9 ) 68 Long-term borrowings 3.44 3.34 3.15 3.02 2.70 10 74 Total borrowings 3.31 3.34 3.15 3.02 2.70 (3 ) 61   Total interest-bearing liabilities 1.27 1.11 0.96 0.89 0.81 16 46   Net interest margin   4.56     4.60     4.66     4.67     4.59     (4 )     (3 )   (1)   Annualized (2) Yields are presented on a fully tax-equivalent basis. (3) The yield on tax-exempt debt securities available for sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.   TCF FINANCIAL CORPORATION AND SUBSIDIARIES Summary of Credit Quality Data (Unaudited)   Allowance for Loan and Lease Losses     At Mar. 31,   At Dec. 31,   At Sep. 30,   At Jun. 30,   At Mar. 31, 2019   2018   2018   2018   2018   % of   % of   % of   % of   % of (Dollars in thousands)   Balance   Portfolio   Balance   Portfolio   Balance   Portfolio   Balance   Portfolio   Balance   Portfolio Consumer real estate $ 43,820   0.82 % $ 44,866   0.83 % $ 45,258   0.92 % $ 43,954   0.95 % $ 47,685 1.01 % Commercial 34,711 0.89 41,182 1.07 40,470 1.08 40,291 1.09 37,198 1.01 Leasing and equipment finance 24,832 0.53 23,791 0.51 22,926 0.50 22,247 0.48 23,182 0.50 Inventory finance 14,132 0.38 12,456 0.40 11,361 0.39 11,840 0.39 13,253 0.38 Auto finance 29,854 1.75 34,329 1.73 39,852 1.75 46,608 1.79 45,822 1.61 Other   623 3.47 822 3.86 754 3.57 679 3.24 563 2.84 Total   $ 147,972     0.76     $ 157,446     0.83     $ 160,621     0.87     $ 165,619     0.89     $ 167,703   0.87     Changes in Allowance for Loan and Lease Losses     Quarter Ended   Change From Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, Dec. 31,   Mar. 31, (In thousands)   2019   2018   2018   2018   2018 2018   2018 Balance, beginning of period $ 157,446 $ 160,621 $ 165,619 $ 167,703 $ 171,041 $ (3,175 ) $ (13,595 ) Charge-offs (24,431 ) (27,227 ) (19,448 ) (18,188 ) (19,865 ) 2,796 (4,566 ) Recoveries   5,777     5,913     12,658     5,418     5,714   (136 )   63   Net (charge-offs) recoveries (18,654 ) (21,314 ) (6,790 ) (12,770 ) (14,151 ) 2,660 (4,503 ) Provision for credit losses 10,122 18,894 2,270 14,236 11,368 (8,772 ) (1,246 ) Other   (942 )   (755 )   (478 )   (3,550 )   (555 ) (187 )   (387 ) Balance, end of period   $ 147,972     $ 157,446     $ 160,621     $ 165,619     $ 167,703     $ (9,474 )   $ (19,731 )   Net Charge-offs     Quarter Ended Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, 2019   2018   2018   2018   2018 (Dollars in thousands)   Balance   Rate(1)   Balance   Rate(1)   Balance   Rate(1)   Balance   Rate(1)   Balance   Rate(1) Consumer real estate:           First mortgage lien $ 628 0.10 % $ 123 0.02 % $ (3,721 ) (0.82 )% $ 714 0.16 % $ 790 0.16 % Junior lien   (180 ) (0.02 ) (210 ) (0.03 ) (2,709 ) (0.37 ) 64   0.01 327   0.05 Total consumer real estate 448 0.03 (87 ) (0.01 ) (6,430 ) (0.55 ) 778 0.07 1,117 0.09 Commercial 2,088 0.22 3,406 0.36 (8 ) — (27 ) — (14 ) — Leasing and equipment finance 2,470 0.21 2,067 0.18 1,930 0.17 2,106 0.18 1,340 0.11 Inventory finance 2,087 0.24 4,629 0.61 637 0.09 517 0.06 409 0.05 Auto finance 10,182 2.21 9,887 1.86 9,485 1.56 8,516 1.26 10,656 1.41 Other   1,379   N.M. 1,412   N.M. 1,176   N.M. 880   N.M. 643   N.M. Total   $ 18,654     0.39     $ 21,314     0.46     $ 6,790     0.15     $ 12,770     0.27     $ 14,151     0.29   N.M. Not Meaningful (1)   Annualized net charge-off rate based on average loans and leases   TCF FINANCIAL CORPORATION AND SUBSIDIARIES Summary of Credit Quality Data (Unaudited), Continued   Over 60-Day Delinquencies as a Percentage of Portfolio(1)             Change From At Mar. 31, At Dec. 31, At Sep. 30, At Jun. 30, At Mar. 31, Dec. 31,   Mar. 31,     2019   2018   2018   2018   2018 2018   2018 Consumer real estate: First mortgage lien 0.20 % 0.19 % 0.18 % 0.20 % 0.23 % 1 bps (3 ) bps Junior lien 0.08 0.04 0.04 0.07 0.06 4 2 Total consumer real estate 0.14 0.11 0.10 0.12 0.13 3 1 Commercial — — — — — — — Leasing and equipment finance 0.20 0.23 0.15 0.11 0.11 (3 ) 9 Inventory finance — 0.01 — — — (1 ) — Auto finance 0.38 0.59 0.41 0.33 0.24 (21 ) 14 Other 0.11 0.14 0.30 0.16 0.24 (3 ) (13 ) Subtotal 0.12 0.15 0.11 0.11 0.09 (3 ) 3 Portfolios acquired with deteriorated credit quality 6.75 4.65 16.70 13.48 12.95 210 (620 ) Total delinquencies   0.12     0.15     0.12     0.11     0.10     (3 )     2     (1)   Excludes non-accrual loans and leases   Non-performing Assets             Change From At Mar. 31, At Dec. 31, At Sep. 30, At Jun. 30, At Mar. 31, Dec. 31,   Mar. 31, (Dollars in thousands)   2019   2018   2018   2018   2018 2018   2018 Non-accrual loans and leases: Consumer real estate $ 65,518 $ 58,765 $ 55,092 $ 49,155 $ 84,237 $ 6,753 $ (18,719 ) Commercial 7,529 15,025 9,888 9,978 11,401 (7,496 ) (3,872 ) Leasing and equipment finance 20,235 15,264 16,061 16,300 19,968 4,971 267 Inventory finance 969 8,283 1,640 2,093 3,621 (7,314 ) (2,652 ) Auto finance 9,033 8,578 7,613 7,312 7,199 455 1,834 Other   1     3     2     21     2     (2 )     (1 ) Total non-accrual loans and leases 103,285 105,918 90,296 84,859 126,428 (2,633 ) (23,143 ) Other real estate owned   18,361     17,403     19,079     16,266     17,179     958       1,182   Total non-performing assets   $ 121,646     $ 123,321     $ 109,375     $ 101,125     $ 143,607     $ (1,675 )     $ (21,961 )   Non-accrual loans and leases as a percentage of total loans and leases 0.53 % 0.56 % 0.49 % 0.46 % 0.65 % (3 ) bps (12 ) bps Non-performing assets as a percentage of total loans and leases and other real estate owned 0.63 0.65 0.59 0.54 0.74 (2 ) (11 ) Allowance for loan and lease losses as a percentage of non-accrual loans and leases   143.27     148.65     177.88     195.17     132.65     (538 )     1,062       TCF FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Capital Information (Unaudited)     At or For the Quarter Ended   Change From (Dollars in thousands, except per share data) Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, Dec. 31,   Mar. 31,   2019   2018   2018   2018   2018 2018     2018   Dividends declared per common share $ 0.15 $ 0.15 $ 0.15 $ 0.15 $ 0.15 — % — % Book value per common share 14.93 14.45 14.01 13.79 13.89 3.3 7.5 Tangible book value per common share(1) 13.86 13.38 12.96 12.73 12.84 3.6 7.9 Common equity to assets 10.02 % 9.99 % 10.21 % 9.97 % 10.06 % 3 bps (4 ) bps Tangible common equity to tangible assets(1) 9.37 9.32 9.51 9.28 9.37 5 —   Regulatory Capital:(2) Common equity Tier 1 capital $ 2,266,244 $ 2,224,183 $ 2,226,820 $ 2,186,528 $ 2,222,390 1.9 % 2.0 % Tier 1 capital 2,459,132 2,408,393 2,412,869 2,375,210 2,414,838 2.1 1.8 Total capital 2,792,419 2,750,581 2,754,615 2,728,076 2,786,637 1.5 0.2   Common equity Tier 1 capital ratio 10.79 % 10.82 % 11.04 % 10.60 % 10.57 % (3 ) bps 22 bps Tier 1 risk-based capital ratio 11.71 11.72 11.96 11.51 11.49 (1 ) 22 Total risk-based capital ratio 13.30 13.38 13.66 13.22 13.26 (8 ) 4 Tier 1 leverage ratio   10.26     10.44     10.58     10.31     10.52     (18 )     (26 )   (1)   See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables (2) March 31, 2019 amounts are preliminary pending completion and filing of the Company's regulatory reports   TCF FINANCIAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)   Computation of adjusted diluted earnings per common share:     Quarter Ended Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, (Dollars in thousands, except per share data)     2019   2018   2018   2018   2018 Net income available to common stockholders $ 68,001 $ 83,158 $ 83,702 $ 56,255 $ 66,174 Less: Earnings allocated to participating securities     13     12     13     8     9 Earnings allocated to common stock (a) 67,988 83,146 83,689 56,247 66,165 Plus: Merger-related expenses 9,458 — — — — Plus: Consumer Financial Protection Bureau ("CFPB")/Office of the Comptroller of the Currency ("OCC") settlement adjustment — — — 32,000 — Less: Related income tax expense     2,252     —     —     6,491     — Adjusted earnings allocated to common stock   (b) $ 75,194     $ 83,146     $ 83,689     $ 81,756     $ 66,165   Weighted-average common shares outstanding used in diluted earnings per common share calculation (c) 162,427,823 163,878,805 165,533,225 166,857,640 169,997,146   Diluted earnings per common share (a) / (c) $ 0.42 $ 0.51 $ 0.51 $ 0.34 $ 0.39 Adjusted diluted earnings per common share   (b) / (c) 0.46     0.51     0.51     0.49     0.39   Computation of net charge-off rate excluding auto finance:       Quarter Ended Mar. 31,   Dec. 31,   Mar. 31, (Dollars in thousands)       2019   2018   2018 Net charge-offs (a) $ 18,654 $ 21,314 $ 14,151 Less: Auto finance net charge-offs       10,182     9,887     10,656   Total net charge-offs excluding auto finance net charge-offs (b) 8,472 11,427 3,495   Average total loans and leases (c) $ 19,186,266 $ 18,554,629 $ 19,253,483 Less: Average auto finance loans       1,841,130     2,121,969     3,020,187   Average total loans and leases excluding auto finance loans   (d)   $ 17,345,136     $ 16,432,660     $ 16,233,296     Net charge-off rate(1) (a) / (c) 0.39 % 0.46 % 0.29 % Net charge-off rate excluding auto finance net charge-offs(1)   (b) / (d)   0.20     0.28     0.09   (1)   Annualized   TCF FINANCIAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued   Computation of adjusted return on average common equity, return on average tangible common equity and adjusted return on average tangible common equity:       Quarter Ended Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, (Dollars in thousands)       2019   2018   2018   2018   2018 Net income available to common stockholders used in ROACE calculation (a) $ 68,001 $ 83,158 $ 83,702 $ 56,255 $ 66,174 Plus: Other intangibles amortization(1) 814 847 913 835 831 Less: Related income tax expense       194     198     220     201     199   Net income available to common stockholders used in ROATCE calculation   (b)   $ 68,621     $ 83,807     $ 84,395     $ 56,889     $ 66,806     Adjusted net income available to common stockholders: Net income available to common stockholders $ 68,001 $ 83,158 $ 83,702 $ 56,255 $ 66,174 Plus: Merger-related expenses 9,458 — — — — Plus: CFPB/OCC settlement adjustment — — — 32,000 — Less: Related income tax expense       2,252     —     —     6,491     —   Net income available to common stockholders used in adjusted ROACE calculation (c) 75,207 83,158 83,702 81,764 66,174 Plus: Other intangibles amortization(1) 814 847 913 835 831 Less: Related income tax expense       194     198     220     201     199   Net income available to common stockholders used in adjusted ROATCE calculation   (d)   $ 75,827     $ 83,807     $ 84,395     $ 82,398     $ 66,806     Average balances: Total equity $ 2,579,250 $ 2,517,870 $ 2,511,983 $ 2,512,128 $ 2,580,920 Less: Non-controlling interest in subsidiaries       24,521     21,918     23,548     28,654     23,191   Total TCF Financial Corporation stockholders' equity 2,554,729 2,495,952 2,488,435 2,483,474 2,557,729 Less: Preferred stock       169,302     169,302     169,302     169,302     200,404   Average total common stockholders' equity used in ROACE calculation (e) 2,385,427 2,326,650 2,319,133 2,314,172 2,357,325 Less: Goodwill, net 154,757 154,757 154,757 154,757 154,757 Less: Other intangibles, net(1)       20,102     20,931     21,798     22,672     23,274   Average tangible common stockholders' equity used in ROATCE calculation   (f)   $ 2,210,568     $ 2,150,962     $ 2,142,578     $ 2,136,743     $ 2,179,294     Adjusted average total common stockholders' equity: Average total common stockholders' equity $ 2,385,427 $ 2,326,650 $ 2,319,133 $ 2,314,172 $ 2,357,325 Plus: CFPB/OCC settlement adjustment to average total common stockholders' equity       —     —     —     4,205     —   Average total common stockholders' equity used in adjusted ROACE calculation (g) 2,385,427 2,326,650 2,319,133 2,318,377 2,357,325 Less: Goodwill, net 154,757 154,757 154,757 154,757 154,757 Less: Other intangibles, net(1)       20,102     20,931     21,798     22,672     23,274   Average tangible common stockholders' equity used in adjusted ROATCE calculation   (h)   $ 2,210,568     $ 2,150,962     $ 2,142,578     $ 2,140,948     $ 2,179,294     ROACE(2) (a) / (e) 11.40 % 14.30 % 14.44 % 9.72 % 11.23 % Adjusted ROACE(2) (c) / (g) 12.61 14.30 14.44 14.11 11.23 ROATCE(2) (b) / (f) 12.42 15.59 15.76 10.65 12.26 Adjusted ROATCE(2)   (d) / (h)   13.72     15.59     15.76     15.39     12.26   (1)   Includes non-mortgage servicing assets (2) Annualized   TCF FINANCIAL CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued   Computation of adjusted efficiency ratio:       Quarter Ended Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31, (Dollars in thousands)       2019   2018   2018   2018   2018 Non-interest expense (a) $ 253,075 $ 249,958 $ 246,423 $ 272,039 $ 245,980 Less: Merger-related expenses 9,458 — — — — Less: CFPB/OCC settlement adjustment       —     —     —     32,000     —   Adjusted non-interest expense   (b)   $ 243,617     $ 249,958     $ 246,423     $ 240,039     $ 245,980     Net interest income $ 250,907 $ 248,888 $ 249,121 $ 250,799 $ 243,199 Non-interest income       107,026     128,133     116,445     114,103     112,204   Total revenue   (c)   $ 357,933     $ 377,021     $ 365,566     $ 364,902     $ 355,403     Efficiency ratio (a) / (c) 70.70 % 66.30 % 67.41 % 74.55 % 69.21 % Adjusted efficiency ratio   (b) / (c)   68.06     66.30     67.41     65.78     69.21     Computation of tangible common equity to tangible assets and tangible book value per common share:       At Mar. 31,   At Dec. 31,   At Sep. 30,   At Jun. 30,   At Mar. 31, (Dollars in thousands, except per share data)       2019   2018   2018   2018   2018 Total equity $ 2,645,845 $ 2,556,260 $ 2,528,012 $ 2,504,578 $ 2,550,950 Less: Non-controlling interest in subsidiaries       29,452     18,459     21,154     23,646     28,437   Total TCF Financial Corporation stockholders' equity 2,616,393 2,537,801 2,506,858 2,480,932 2,522,513 Less: Preferred stock       169,302     169,302     169,302     169,302     169,302   Total common stockholders' equity (a) 2,447,091 2,368,499 2,337,556 2,311,630 2,353,211 Less: Goodwill, net 154,757 154,757 154,757 154,757 154,757 Less: Other intangibles, net(1)       19,704     20,518     21,364     22,247     23,112   Tangible common stockholders' equity   (b)   $ 2,272,630     $ 2,193,224     $ 2,161,435     $ 2,134,626     $ 2,175,342     Total assets (c) $ 24,418,715 $ 23,699,612 $ 22,904,785 $ 23,184,462 $ 23,385,052 Less: Goodwill, net 154,757 154,757 154,757 154,757 154,757 Less: Other intangibles, net(1)       19,704     20,518     21,364     22,247     23,112   Tangible assets   (d)   $ 24,244,254     $ 23,524,337     $ 22,728,664     $ 23,007,458     $ 23,207,183     Common stock shares outstanding (e) 163,951,155 163,923,227 166,812,524 167,684,971 169,415,834   Common equity to assets (a) / (c) 10.02 % 9.99 % 10.21 % 9.97 % 10.06 % Tangible common equity to tangible assets (b) / (d) 9.37 9.32 9.51 9.28 9.37   Book value per common share (a) / (e) $ 14.93 $ 14.45 $ 14.01 $ 13.79 $ 13.89 Tangible book value per common share   (b) / (e)   13.86     13.38     12.96     12.73     12.84   (1)   Includes non-mortgage servicing assets

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(Media)Mark Goldman(952) 475-7050news@tcfbank.com(Investors)Timothy Sedabres(952) 745-2766investor@tcfbank.com