TCF FINANCIAL CORP - FORM 8-K - EX-99.1

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Exhibit 99.1

NEWS RELEASE

CONTACT: Jason Korstange
(952) 745-2755
www.tcfbank.com
FOR IMMEDIATE RELEASE

TCF FINANCIAL CORPORATION 200 Lake Street East, Wayzata, MN 55391-1693

Previously Announced Balance Sheet Repositioning Drives TCFs First Quarter 2012 Results

Total Loans and Leases up $1 billion in the first quarter

FIRST QUARTER HIGHLIGHTS

-	Net loss of $282.9 million or $1.78 per share
-	Balance sheet repositioned through reductions and refinance of long-term borrowings and sales of mortgage backed securities at a net loss of $295.8 million, or $1.87 per share
-	Total loans and leases of $15.2 billion, up 7.5 percent from $14.2 billion at December 31, 2011
-	Net interest margin of 4.14 percent, up 22 bps from the fourth quarter 2011
-	Total delinquent loans declined $18.5 million from December 31, 2011
-	Announced quarterly cash dividend of 5 cents per common share, payable May 31, 2012

Summary of Financial Results							Table 1
($ in thousands, except per-share data)							Percent Change
	1Q 2012		4Q 2011		1Q 2011		1Q 2012 vs 4Q 2011	1Q 2012 vs 1Q 2011
Net (loss) income	$ (282,894	)	$ 16,443		$ 30,272		N.M.%	N.M.%
Diluted earnings per common share	(1.78	)	.10		.21		N.M.	N.M.

Financial Ratios(1)
Return on average assets	(5.96	)%	.37	%	.68	%
Return on average common equity	(63.38	)	3.55		8.00
Net interest margin	4.14		3.92		4.06
Net charge-offs as a percentage of average loans and leases	1.06		1.63		1.51

(1) Annualized.
N.M. = Not meaningful.

WAYZATA, MN, April 19, 2012 – TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported a net loss for the first quarter of 2012 of $282.9 million, or $1.78 per share, inclusive of a net, after-tax charge of $295.8 million, or $1.87 per share, related to repositioning certain investments and borrowings of TCF’s balance sheet. TCF reported net income of $30.3 million, or 21 cents per share, in the first quarter of 2011 and $16.4 million, or 10 cents per share, in the fourth quarter of 2011.

TCF declared a quarterly cash dividend of 5 cents per common share payable on May 31, 2012 to stockholders of record at the close of business on April 27, 2012.

Chairman’s Statement

“TCF’s first quarter results were highlighted by significant loan and lease growth from our specialty finance businesses, along with the successful completion of the repositioning of our balance sheet,” said William A. Cooper, Chairman and Chief Executive Officer. “While the balance sheet repositioning resulted in TCF’s first quarterly loss in 17 years, it was absolutely the right thing to do. Through the elimination of much of the high-cost, long-term debt and the sale of lower yielding, long-term mortgage-backed securities that were significantly limiting our net interest margin, we increased the transparency for the market to see the true franchise value of TCF in future periods.

“The growth in loans and leases during the quarter was primarily in inventory finance and auto finance. We are very excited about the growth potential of these businesses, especially in a time where many banks are struggling to find disciplined loan growth opportunities. TCF’s emphasis over the past several years on diversification into additional secured lending-oriented national specialty finance platforms has become a major contributor to TCF’s value proposition.

“With the asset growth tailwind at our back and the elimination of the headwind related to our long-term borrowing costs, we can focus our efforts on growing revenue and continuing overall improvements in credit quality. We look for our newly launched Choice Checking account product to positively impact both checking account generation and attrition. Meanwhile, as the economy slowly improves and we continue to focus on our underperforming real estate loans, I am optimistic about our credit outlook for the second half of 2012. While

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there are still challenges ahead, I am confident that the recent evolution of the bank has put TCF on the right path for success in today’s unique banking environment.”

Total Revenue									Table 2
							Percent Change
($ in thousands)	1Q 2012		4Q 2011		1Q 2011		1Q12 vs 4Q11		1Q12 vs 1Q11
Net interest income	$ 180,173		$ 173,434		$ 174,040		3.9	%	3.5	%
Fees and other revenue:
Fees and service charges	41,856		51,002		53,513		(17.9)		(21.8)
Card revenue	13,207		13,643		26,584		(3.2)		(50.3)
ATM revenue	6,199		6,608		6,705		(6.2)		(7.5)
Total banking fees	61,262		71,253		86,802		(14.0)		(29.4)
Leasing and equipment finance	22,867		18,492		26,750		23.7		(14.5)
Gains on sales of auto loans	2,250		1,133		-		98.6		N.M.
Other	2,355		1,570		694		50.0		N.M.
Total fees and other revenue	88,734		92,448		114,246		(4.0)		(22.3)
Subtotal	268,907		265,882		288,286		1.1		(6.7)
Gains on securities, net	76,611		5,842		-		N.M.		N.M.

Total revenue	$ 345,518		$ 271,724		$ 288,286		27.2		19.9

Net interest margin(1)	4.14	%	3.92	%	4.06	%
Fees and other revenue as a % of total revenue	25.68		34.02		39.63

(1) Annualized.
N.M. = Not meaningful.

Net Interest Income

	·	Net interest income for first quarter of 2012 increased $6.1 million, or 3.5 percent, compared with the first quarter of 2011. This increase is primarily due to lower average balances and cost of borrowings resulting from the balance sheet repositioning completed in March 2012, lower average borrowings due to 2011 debt maturities replaced with deposits, decreased rates on various deposit products and higher average loan and lease balances as a result of growth in the inventory finance and auto finance portfolios. These increases were partially offset by decreases in the consumer and commercial real estate portfolio balances and average yields. Net interest income for the first quarter of 2012 increased $6.7 million, or 3.9 percent, compared with the fourth quarter of 2011. This increase is primarily due to increased growth in the inventory finance portfolio, lower average cost of borrowings offset by lower mortgage-backed securities balances resulting from the balance sheet repositioning completed in March 2012, and growth in the auto finance portfolio. These increases were partially offset by decreases in the consumer and commercial real estate portfolio average balances and yields.

	·	Net interest margin in the first quarter of 2012 was 4.14 percent, compared with 4.06 percent in the first

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		quarter of 2011. This increase is primarily due to lower average balance and cost of borrowings due to the effects of the balance sheet repositioning completed in March 2012, lower average borrowings due to 2011 debt maturities replaced with deposits, as well as decreased rates on various deposit products. These increases were partially offset by a decrease in yields in the consumer, commercial, and leasing and equipment finance portfolios as a result of the lower interest rate environment. Net interest margin increased by 22 basis points from 3.92 percent in the fourth quarter of 2011. This increase is primarily due to a lower average cost of borrowings due to the effects of the balance sheet repositioning completed in March 2012. This increase was partially offset by decreased levels of higher yielding loans and leases in the consumer, commercial, and leasing and equipment finance portfolios as a result of the lower interest rate environment.

	·	At March 31, 2012, interest-bearing deposits held at the Federal Reserve and unencumbered securities were $1.1 billion, an increase of $372 million from March 31, 2011 and a decrease of $319 million from December 31, 2011.

Non-interest Income

	·	Banking fees and service charges in the first quarter of 2012 were $41.9 million, down $11.7 million, or 21.8 percent, from the first quarter of 2011 and down $9.1 million, or 17.9 percent, from the fourth quarter of 2011. The decrease in banking fees and revenues from the first quarter of 2011 was primarily due to changes in customer behaviors and increased levels of checking account attrition. The decrease from the fourth quarter of 2011 was primarily due to modifications to fee structures, seasonality, changes in customer behaviors and checking account attrition. Certain changes in checking account product design were implemented late in the first quarter, which management expects will have a meaningful impact on these revenues in the second quarter and beyond.

	·	Card revenues were $13.2 million in the first quarter of 2012, a decrease of $13.4 million, or 50.3 percent, from the first quarter of 2011 and down $436 thousand, or 3.2 percent, from the fourth quarter of 2011. Compared with the first quarter of 2011, the average interchange rate per transaction decreased due to new debit card interchange regulations which took effect on October 1, 2011. The decrease in

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		card revenue from the fourth quarter of 2011 was primarily due to lower seasonal transaction volume.

	·	Leasing and equipment finance revenues were $22.9 million in the first quarter of 2012, down $3.9 million, or 14.5 percent, from the first quarter of 2011 and up $4.4 million, or 23.7 percent, from the fourth quarter of 2011. The changes from the prior periods were attributable to differing levels of customer-initiated lease activity.

	·	TCF sold $72 million of auto loans and recognized $2.3 million in associated gains during the first quarter of 2012, compared with the sale of $37.4 million of auto loans and recognition of $1.1 million in associated gains during the fourth quarter of 2011.

Loans and Leases

Period-End and Average Loans and Leases						Table 3
				Percent Change
($ in thousands)	1Q 2012	4Q 2011	1Q 2011	1Q 2012 vs 4Q 2011		1Q 2012 vs 1Q 2011
Period-End:
Consumer real estate	$ 6,815,909	$ 6,895,291	$ 7,062,035	(1.2)	%	(3.5)	%
Commercial	3,467,089	3,449,492	3,608,356	.5		(3.9)
Leasing and equipment finance	3,118,755	3,142,259	3,079,966	(.7)		1.3
Inventory finance	1,637,958	624,700	1,011,044	162.2		62.0
Auto finance	139,047	3,628	-	N.M.		N.M.
Other	29,178	34,885	35,140	(16.4)		(17.0)
Total	$ 15,207,936	$ 14,150,255	$ 14,796,541	7.5		2.8

Average:
Consumer real estate	$ 6,845,063	$ 6,933,051	$ 7,101,959	(1.3)		(3.6)
Commercial	3,457,720	3,476,660	3,623,463	(.5)		(4.6)
Leasing and equipment finance	3,128,329	3,043,329	3,119,669	2.8		.3
Inventory finance	1,145,183	766,885	872,785	49.3		31.2
Auto finance	85,562	1,442	-	N.M.		N.M.
Other	17,582	17,944	21,757	(2.0)		(19.2)
Total	$ 14,679,439	$ 14,239,311	$ 14,739,633	3.1		(.4)

N.M. = Not meaningful.

Period end loans and leases were $15.2 billion at March 31, 2012, an increase of $411.4 million, or 2.8 percent, compared with March 31, 2011, and $1.1 billion, or 7.5 percent, compared with December 31, 2011. The increases in total loans and leases from March 31, 2011 and December 31, 2011 were primarily due to growth in the inventory finance and auto finance portfolios. The increase in the inventory finance portfolio, from the first quarter of 2011 was primarily due to the funding of dealers of Bombardier Recreational Products Inc. (“BRP”), a new program commencing on February 1, 2012. The

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		increase from the fourth quarter of 2011 was primarily due to seasonal growth in the lawn and garden programs and the funding of BRP® dealers. Auto finance loans are expected to grow throughout 2012 as Gateway One expands its sales force, the number of active dealers and the number of states in its network. Gateway One increased its portfolio of managed loans, including loans, loans held for sale, and loans sold and serviced for others, by 39.1 percent to $555.8 million at March 31, 2012 from $399.7 million at December 31, 2011. Gateway One expanded its active dealers to 4,452 at March 31, 2012, from 3,438 at December 31, 2011.

	·	Average loans and leases were $14.7 billion at March 31, 2012, a decrease of $60.2 million, or .4 percent, compared with March 31, 2011, and an increase of $440.1 million, or 3.1 percent, compared with December 31, 2011. The decrease in average loans and leases from March 31, 2011 was primarily due to a decrease in the consumer real estate and commercial portfolios, offset by growth in the inventory finance, auto finance and leasing and equipment finance portfolios. The increase in average loans and leases from December 31, 2011 was primarily due to growth in the inventory finance, leasing and equipment finance and auto finance portfolios. The decreases in the average consumer real estate portfolios reflect a decline in production of new loans as marketplace rates available for fixed-rate loans are not as attractive to TCF. The increase in the average leasing and equipment finance portfolios from both periods was primarily due to growth in core market segments and an equipment finance portfolio acquisition in December 2011, partially offset by runoff of acquired portfolios. The increase in average inventory finance portfolios from the first quarter of 2011 was primarily due to the funding of dealers of BRP. The increase from the fourth quarter of 2011 was primarily due to seasonal growth in the lawn and garden programs and the funding of BRP dealers.

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Credit Quality

Non-performing assets and over 60-day delinquencies remained relatively flat and first quarter 2012 net charge-offs were at the lowest quarterly level over the last eight quarters.

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Credit Quality Summary of Performing and Underperforming Loans and Leases																			Table 5

($ in thousands)	Performing Loans and Leases(1)												60+ Days
							Accruing						Delinquent and			Non-accrual			Total Loans
March 31, 2012	Non-classified			Classified(2)			TDRs(3)			Total			Accruing			Loans and Leases			and Leases
Consumer real estate	$	6,149,586		$	-		$	413,364		$	6,562,950		$	103,655		$	149,304		$	6,815,909
Commercial	3,011,101			207,691			109,195			3,327,987			3,425			135,677			3,467,089
Leasing and equipment finance	3,071,833			19,111			845			3,091,789			6,951			20,015			3,118,755
Inventory finance	1,630,126			6,538			-			1,636,664			185			1,109			1,637,958
Auto finance	138,879			-			-			138,879			168			-			139,047
Other	26,288			-			-			26,288			52			2,838			29,178
Total loans and leases	$	14,027,813		$	233,340		$	523,404		$	14,784,557		$	114,436		$	308,943		$	15,207,936
Percent of total loans and leases	92.3		%	1.5		%	3.4		%	97.2		%	.8		%	2.0		%	100.0		%


($ in thousands)	Performing Loans and Leases(1)												60+ Days
							Accruing						Delinquent and			Non-accrual			Total Loans
December 31, 2011	Non-classified			Classified(2)			TDRs(3)			Total			Accruing			Loans and Leases			and Leases
Consumer real estate	$	6,233,515		$	-		$	402,770		$	6,636,285		$	109,635		$	149,371		$	6,895,291
Commercial	2,987,876			234,501			98,448			3,320,825			1,148			127,519			3,449,492
Leasing and equipment finance	3,093,194			21,451			776			3,115,421			6,255			20,583			3,142,259
Inventory finance	616,677			7,040			-			623,717			160			823			624,700
Auto finance	3,231			-			-			3,231			397			-			3,628
Other	34,829			-			-			34,829			41			15			34,885
Total loans and leases	$	12,969,322		$	262,992		$	501,994		$	13,734,308		$	117,636		$	298,311		$	14,150,255
Percent of total loans and leases	91.7		%	1.9		%	3.5		%	97.1		%	.8		%	2.1		%	100.0		%


($ in thousands)	Performing Loans and Leases(1)												60+ Days
							Accruing						Delinquent and			Non-accrual			Total Loans
March 31, 2011	Non-classified			Classified(2)			TDRs(3)			Total			Accruing			Loans and Leases			and Leases
Consumer real estate	$	6,489,701		$	-		$	327,592		$	6,817,293		$	89,552		$	155,190		$	7,062,035
Commercial	3,053,296			398,524			26,927			3,478,747			1,864			127,745			3,608,356
Leasing and equipment finance	3,001,250			33,333			1,110			3,035,693			9,639			34,634			3,079,966
Inventory finance	1,005,837			3,496			-			1,009,333			274			1,437			1,011,044
Other	35,019			-			-			35,019			78			43			35,140
Total loans and leases	$	13,585,103		$	435,353		$	355,629		$	14,376,085		$	101,407		$	319,049		$	14,796,541
Percent of total loans and leases	91.8		%	2.9		%	2.4		%	97.1		%	.7		%	2.2		%	100.0		%

(1) Includes all loans and leases that are not 60+ days delinquent or on non-accrual status.

(2) Excludes classified loans and leases that are accruing TDRs and 60+ days delinquent. “Classified” loans and leases are those for which management has concerns regarding the borrower’s ability to meet the existing terms and conditions, but may never become non-performing or result in a loss.
(3) Excludes accruing TDRs that are 60+ days delinquent.

At March 31, 2012:

Performing loans and leases includes all loans and leases that are not over 60-days delinquent or on non-accrual status. Performing loans and leases were 97.2 percent of total loans and leases at March 31, 2012, a slight increase from 97.1 percent at December 31, 2011. The increase was due to the growth of high credit quality inventory finance loans.

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·	The over 60-day delinquency rate was .77 percent, down from .85 percent at December 31, 2011 and up from .7 percent at March 31, 2011. The decrease from the fourth quarter of 2011 was primarily due to growth in the overall inventory finance portfolio and, to a lesser extent, decreases in consumer real estate junior lien delinquencies.

·	Non-accrual loans and leases were $308.9 million at March 31, 2012, an increase of $10.6 million, or 3.6 percent, from December 31, 2011 and a decrease of $10.1 million, or 3.2 percent, from March 31, 2011. The increase from December 31, 2011 was primarily due to a $15.2 million increase in commercial real estate non-accrual loans, partially offset by a $7 million decrease in commercial business non-accrual loans. The decrease from March 31, 2011 was primarily due to a $14.6 million decrease in leasing and equipment finance non-accrual loans and leases as a result of fewer loans and leases entering non-accrual status, partially offset by an increase in commercial real estate non-accruals.

·	Other real estate owned was $127.2 million at March 31, 2012, a decrease of $7.7 million from December 31, 2011 and a decrease of $14.9 million from March 31, 2011. The decrease from December 31, 2011 was primarily due to decreased transfers of commercial real estate loans from non-accrual status. The decrease from March 31, 2011 was primarily due to a decrease in the number of consumer properties owned.

·	Consumer real estate TDRs include loans where a payment modification (but not a reduction of principal) has been granted to a residential real estate customer. Accruing consumer real estate TDRs totaled $445 million at March 31, 2012, and had been in that status for an average of 15 months. These loans had a weighted average yield of 3.7 percent, were reserved at 13.5 percent and 7.1 percent were over 60-days delinquent.

·	At March 31, 2012, approximately 56 percent of the accruing consumer real estate TDRs were permanent modifications and 4.1 percent of the accruing permanent modifications were over 60-days delinquent.

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·	Commercial TDRs include loans where a payment or other modification (but not a reduction of principal) has been granted. Accruing commercial TDRs had a weighted average yield of 5.4 percent and .63 percent were over 60-days delinquent at March 31, 2012.

Allowance for Loan and Lease Losses

Credit Quality Summary												Table 6
($ in thousands)										Percent Change
	1Q			4Q			1Q			1Q 2012 vs		1Q 2012 vs
Allowance for Loan and Lease Losses	2012			2011			2011			4Q 2011		1Q 2011
Balance at beginning of period	$	255,672		$	254,325		$	265,819		.5	%	(3.8	)%
Charge-offs	(44,675		)	(62,973		)	(61,105		)	(29.1	)	(26.9	)
Recoveries	5,742			5,051			5,293			13.7		8.5
Net charge-offs	38,933			57,922			55,812			(32.8	)	(30.2	)
Provision for credit losses	48,542			59,249			45,274			(18.1	)	7.2
Other	12			20			27			(40.0	)	(55.6	)
Balance at end of period	$	265,293		$	255,672		$	255,308		3.8		3.9

Net charge-offs as a percentage of
average loans and leases(1)
Consumer real estate
First mortgage lien	1.66		%	1.94		%	1.81		%	(28	) bps	(15	) bps
Junior lien	3.03			2.63			2.39			40		64
Total consumer real estate	2.09			2.15			1.99			(6	)	10
Commercial	.18			1.79			1.96			(161	)	(178	)
Leasing and equipment finance	.02			.46			.36			(44	)	(34	)
Inventory finance	.22			.03			.10			19		12
Auto finance	.01			-			-			1		1
Other	N.M		.	N.M		.	N.M		.	N.M	.	N.M	.
Total	1.06			1.63			1.51			(57	)	(45	)

Allowance as a percentage of period end loans and leases	1.74		%	1.81		%	1.73		%
Ratio of allowance to net charge-offs(1)	1.70		X	1.10		X	1.10		X

N.M. = Not meaningful.
(1) Annualized.

At March 31, 2012:

Allowance for loan and lease losses was $265.3 million, or 1.74 percent of loans and leases, an increase of $10 million compared with $255.7 million, or 1.81 percent, at December 31, 2011 and $255.3 million, or 1.73 percent, at March 31, 2011.

For the quarter ended March 31, 2012:

Provision for credit losses was $48.5 million, a decrease of $10.7 million from $59.2 million recorded in the fourth quarter of 2011 and an increase from $45.3 million in the first quarter of 2011. The decrease from the fourth quarter of 2011 was primarily due to decreased net charge-offs in the commercial

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		portfolio and decreased provision expense on consumer real estate TDRs, as fewer loans were modified in the first quarter of 2012 compared with the fourth quarter of 2011. The increase from the first quarter of 2011 was primarily due to increased reserves on the inventory finance portfolio as a result of increased loan balances.

	·	Net loan and lease charge-offs were $38.9 million, or 1.06 percent, annualized, of average loans and leases, down $19 million from $57.9 million, or 1.63 percent, annualized, in the fourth quarter of 2011 and down from $55.8 million, or 1.51 percent, annualized, in the first quarter of 2011. The decrease from both the first quarter and the fourth quarter of 2011 was primarily due to decreases in net charge-offs in commercial real estate and leasing and equipment finance.

Deposits

Average Deposits										Table 7
										Percent Change
($ in thousands)	1Q			4Q			1Q			1Q 2012 vs		1Q 2012 vs
	2012			2011			2011			4Q 2011		1Q 2011

Checking	$	4,565,065		$	4,449,640		$	4,501,931		2.6	%	1.4	%
Savings	5,905,118			5,878,392			5,444,381			.5		8.5
Money market	662,493			662,024			673,503			.1		(1.6	)
Subtotal	11,132,676			10,990,056			10,619,815			1.3		4.8
Certificates	1,135,673			1,112,735			1,092,537			2.1		3.9
Total deposits	$	12,268,349		$	12,102,791		$	11,712,352		1.4		4.8

Total new checking accounts	97,719			94,321			97,459			3.6		.27
Average interest rate on deposits(1)	.30		%	.32		%	.42		%

(1) Annualized.

	·	Total average deposits increased $165.6 million, or 1.4 percent, from the fourth quarter of 2011 primarily due to increases in the average balances of checking accounts. Total average deposits increased $556 million, or 4.8 percent, from the first quarter of 2011 primarily due to an increase in the average balance of savings accounts.

	·	The average interest cost of deposits in the first quarter of 2012 was .30 percent, down 2 basis points from the fourth quarter of 2011 and down 12 basis points from the first quarter of 2011. The decrease

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from both periods was primarily due to pricing strategies on certain deposit products. The weighted average interest rate on deposits was .29 percent at March 31, 2012.

Non-interest Expense

Non-interest Expense											Table 8
									Percent Change
($ in thousands)	1Q			4Q			1Q		1Q 2012 vs		1Q 2012 vs
	2012			2011			2011		4Q 2011		1Q 2011
Compensation and
employee benefits	$	95,967		$	82,595		$	89,357	16.2	%	7.4	%
Occupancy and equipment	32,246			32,366			32,159		(.4	)	.3
FDIC insurance	6,386			6,647			7,195		(3.9	)	(11.2	)
Deposit account premiums	5,971			6,482			3,198		(7.9	)	86.7
Advertising and marketing	2,617			2,250			3,160		16.3		(17.2	)
Other	37,296			39,148			34,566		(4.7	)	7.9
Core operating expenses	180,483			169,488			169,635		6.5		6.4
Loss on termination of debt	550,735			-			-		100.0		100.0
Foreclosed real estate and
repossessed assets, net	11,047			11,323			12,868		(2.4	)	(14.2	)
Operating lease depreciation	6,731			6,811			7,928		(1.2	)	(15.1	)
Other credit costs, net	(288		)	(89		)	2,548		N.M	.	N.M	.
Total non-interest expense	$	748,708		$	187,533		$	192,979	N.M	.	N.M	.

N.M. = Not meaningful.

	·	Compensation and employee benefits expense increased $6.6 million, or 7.4 percent, from the first quarter of 2011 and increased $13.4 million, or 16.2 percent, from the fourth quarter of 2011. The increase from the first quarter of 2011 was primarily due to the newly acquired auto finance business as well as increased headcount related to achieving staffing levels for increased assets in the BRP program in Inventory Finance. The increase from the fourth quarter of 2011 was primarily due to $4.4 million of net gains recognized on the annual re-measurement of retirement benefit plan assets and liabilities during the fourth quarter of 2011, the newly acquired auto finance business as it ramps up capacity to originate loans and service higher loan volumes and higher seasonal payroll tax expenses in the first quarter of 2012.

	·	FDIC insurance expense decreased $809 thousand, or 11.2 percent, from the first quarter of 2011 and decreased $261 thousand, or 3.9 percent, from the fourth quarter of 2011. The decrease from the first quarter of 2011 was primarily due to the balance sheet repositioning during March of 2012 which resulted in a lower assessment base and changes in the FDIC insurance rate calculation for banks over

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		$10 billion in assets, which were implemented on April 1, 2011. The decrease from the fourth quarter of 2011 was primarily due to the balance sheet repositioning during March of 2012 which resulted in a lower assessment base.

	·	Deposit account premiums increased $2.8 million, or 86.7 percent, from the first quarter of 2011 and decreased $511 thousand, or 7.9 percent, from the fourth quarter of 2011. The increase from the first quarter of 2011 was primarily due to changes in the account premium programs, beginning in April 2011, resulting in increased premiums paid to qualifying accounts. The decrease from the fourth quarter of 2011 was primarily due to a decrease in the production of accounts that qualified for premiums despite an overall increase in account production.

	·	Other non-interest expense increased $2.7 million, or 7.9 percent, from the first quarter of 2011 and decreased $1.9 million, or 4.7 percent, from the fourth quarter of 2011. The increase from the first quarter of 2011 was primarily due to an increase in expenses incurred as a result of the transfer of certain bank operations to South Dakota during the first quarter of 2012. The decrease from the fourth quarter of 2011 was primarily due to transaction costs related to the acquisition of Gateway One that were incurred during the fourth quarter of 2011.

	·	As previously disclosed, during March of 2012, TCF restructured $3.6 billion of long-term borrowings that had a 4.3 percent weighted average rate and recognized a pre-tax loss of $551 million. TCF replaced $2.1 billion of 4.4 percent weighted average fixed-rate, Federal Home Loan Bank advances with a mix of floating and fixed-rate borrowings with a current weighted average rate of .5 percent. In addition, TCF terminated $1.5 billion of 4.2 percent weighted average fixed-rate borrowings under repurchase agreements. Related to these transactions, TCF sold $1.9 billion of mortgage backed securities and recognized a pre-tax gain of $77 million.

	·	Foreclosed real estate and repossessed asset expense decreased $1.8 million, or 14.2 percent, from the first quarter of 2011 and decreased $276 thousand, or 2.4 percent, from the fourth quarter of 2011. The decrease from the first quarter of 2011 was primarily due to reduced writedowns on consumer real estate

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properties as a result of a decrease in the number of properties owned. The decrease from the fourth quarter of 2011 was primarily due to reduced writedowns on consumer real estate properties owned, partially offset by increased property tax expenses on consumer real estate and commercial real estate properties owned.

Capital and Borrowing Capacity

Capital Information									Table 9
At period end
($ in thousands, except per-share data)	1Q					4Q
	2012					2011
Total equity	$	1,549,325				$	1,878,627
Total equity to total assets	8.69		%			9.90		%
Book value per common share	$	9.44				$	11.65
Tangible realized common equity to tangible assets(1)	7.36		%			8.42		%

Risk-based capital
Tier 1	$	1,431,565		9.97	%	$	1,706,926		12.67	%
Total	1,705,518			11.88		1,994,875			14.80
Excess over 10%(2)	269,779			1.88		647,342			4.80

Tier 1 Leverage Capital	$	1,431,565		7.68	%	$	1,706,926		9.15	%

Tier 1 common capital(3)	$	1,298,259		9.04	%	$	1,581,432		11.74	%

(1) Excludes the impact of goodwill, other intangibles and accumulated other comprehensive income (loss) (see “Reconciliation of GAAP to Non-GAAP Measures” table).
(2) The well-capitalized requirements are determined by the Federal Reserve for TCF pursuant to the FDIC Improvement Act of 1991.
(3) Excludes the effect of qualifying trust preferred securities and qualifying non-controlling interest in subsidiaries (see “Reconciliation of GAAP to Non-GAAP Measures” table).

	·	Changes in capital ratios since December 31, 2011 are primarily the result of the balance sheet repositioning completed during March 2012, offset by earnings from operations in the quarter. TCF continues to exceed the 10 percent “well-capitalized” requirement.

	·	On April 16, 2012, the Board of Directors of TCF declared a regular quarterly cash dividend of 5 cents per common share payable on May 31, 2012 to stockholders of record at the close of business on April 27, 2012.

	·	At March 31, 2012, TCF had $2.8 billion in unused, secured borrowing capacity at the FHLB of Des Moines and $530 million in unused, secured borrowing capacity at the Federal Reserve Discount Window.

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Website Information

A live webcast of TCF’s conference call to discuss the first quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on April 19, 2012 at 10:00 a.m. CT. Additionally, the webcast will be available for replay at TCF’s website after the conference call. The website also includes free access to company news releases, TCF’s annual report, investor presentations and SEC filings.

TCF is a Wayzata, Minnesota-based national bank holding company with $17.8 billion in total assets at March 31, 2012. TCF has over 430 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF also conducts commercial leasing and equipment finance business and leverage lending in all 50 states, commercial inventory finance business in the U.S. and Canada, and indirect auto finance business in over 30 states. For more information about TCF, please visit http://ir.tcfbank.com.

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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, 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 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 in this release. 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, 2011 under the heading “Risk Factors,” the factors discussed below 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.

Adverse Economic or Business Conditions, Credit and Other Risks Deterioration in general economic and banking industry conditions, including defaults, anticipated defaults or rating agency downgrades of sovereign debt (including debt of the U.S.), or continued high rates of or increases in unemployment in TCF’s primary banking markets; adverse economic, business and competitive developments such as shrinking interest margins, deposit outflows, deposit account attrition or an inability to increase the number of deposit accounts; adverse changes in credit quality and other risks posed by TCF’s loan, lease, investment and securities available for sale portfolios, including declines in commercial or residential real estate values or changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements; interest rate risks resulting from fluctuations in prevailing interest rates or other factors that result in a mismatch between yields earned on TCF’s interest-earning assets and the rates paid on its deposits and borrowings; foreign currency exchange risks; counterparty risk, including the risk of defaults by our counterparties or diminished availability of counterparties who satisfy our credit quality requirements; decreases in demand for the types of equipment that TCF leases or finances; limitations on TCF’s ability to attract and retain manufacturers and dealers to expand the inventory finance business.

Legislative and Regulatory Requirements New consumer protection and supervisory requirements and regulations, including those resulting from action by the CFPB and changes in the scope of Federal preemption of state laws that could be applied to national banks; the imposition of requirements with an adverse impact relating to TCF’s lending, loan collection and other business activities as a result of the Dodd-Frank Act, or other legislative or regulatory developments such as mortgage foreclosure moratorium laws or imposition of underwriting or other limitations that impact the ability to use certain variable-rate products; impact of legislative, regulatory or other changes affecting customer account charges and fee income; changes to bankruptcy laws which would result in the loss of all or part of TCF’s security interest due to collateral value declines; deficiencies in TCF’s compliance under the Bank Secrecy Act in past or future periods, which may result in regulatory enforcement action including monetary penalties; increased health care costs resulting from Federal health care reform legislation; adverse regulatory examinations and resulting enforcement actions or other adverse consequences such as increased capital requirements or higher deposit insurance assessments; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity.

Earnings/Capital Risks and Constraints, Liquidity Risks Limitations on TCF’s ability to pay dividends or to increase dividends because of financial performance deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to adverse conditions in the banking industry, the economic impact on banks of the Dodd-Frank Act and other regulatory reform legislation; the impact of financial regulatory reform, including the phase out of trust preferred securities in tier 1 capital called for by the Dodd-Frank Act, or additional capital, leverage, liquidity and risk management requirements or changes in the composition of qualifying regulatory capital (including those resulting from U.S. implementation of Basel III requirements); adverse changes in

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securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund its operations; diminished unsecured borrowing capacity resulting from TCF credit rating downgrades and unfavorable conditions in the credit markets that restrict or limit various funding sources; costs associated with new regulatory requirements or interpretive guidance relating to liquidity; uncertainties relating to customer opt-in preferences with respect to overdraft fees on point of sale and ATM transactions which may have an adverse impact on TCF’s fee revenue; uncertainties relating to future retail deposit account changes, including limitations on TCF’s ability to predict customer behavior and the impact on TCF’s fee revenues.

Competitive Conditions; Supermarket Branching Risk; Growth Risks Reduced demand for financial services and loan and lease products; adverse developments affecting TCF’s supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches; customers completing financial transactions without using a bank; the effect of any negative publicity; slower than anticipated growth in existing or acquired businesses; inability to successfully execute on TCF’s growth strategy through acquisitions or cross-selling opportunities; failure to expand or diversify our balance sheet through programs or new opportunities; failure to successfully attract and retain new customers; product additions and addition of distribution channels (or entry into new markets) for existing products.

Technological and Operational Matters Technological or operational difficulties, loss or theft of information, counterparty failures and the possibility that deposit account losses (fraudulent checks, etc.) may increase; failure to keep pace with technological change.

Litigation Risks Results of litigation, including class action litigation concerning TCF’s lending or deposit activities including account servicing processes or fees or charges, or employment practices, and possible increases in indemnification obligations for certain litigation against Visa U.S.A. and potential reductions in card revenues resulting from such litigation or other litigation against Visa.

Accounting, Audit, Tax and Insurance Matters Changes in accounting standards or interpretations of existing standards; federal or state monetary, fiscal or tax policies, including adoption of state legislation that would increase state taxes; ineffective internal controls; adverse state or Federal tax assessments or findings in tax audits; lack of or inadequate insurance coverage for claims against TCF; potential for claims and legal action related to TCF’s fiduciary responsibilities.

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

Three Months Ended March 31,

Change

2012

2011

Interest income:

Loans and leases

205,984

214,673

(8,689)

(4.0)

Securities available for sale

19,112

19,429

(317)

(1.6)

Investments and other

2,433

1,801

632

35.1

Total interest income

227,529

235,903

(8,374)

(3.5)

Interest expense:

Deposits

9,061

12,004

(2,943)

(24.5)

Borrowings

38,295

49,859

(11,564)

(23.2)

Total interest expense

47,356

61,863

(14,507)

(23.5)

Net interest income

180,173

174,040

6,133

3.5

Provision for credit losses

48,542

45,274

3,268

7.2

Net interest income after provision for

credit losses

131,631

128,766

2,865

2.2

Non-interest income:

Fees and service charges

41,856

53,513

(11,657)

(21.8)

Card revenue

13,207

26,584

(13,377)

(50.3)

ATM revenue

6,199

6,705

(506)

(7.5)

Subtotal

61,262

86,802

(25,540)

(29.4)

Leasing and equipment finance

22,867

26,750

(3,883)

(14.5)

Gains on sales of auto loans

2,250

N.M.

Other

2,355

694

1,661

N.M.

Fees and other revenue

88,734

114,246

(25,512)

(22.3)

Gains on securities, net

76,611

N.M.

Total non-interest income

165,345

114,246

51,099

44.7

Non-interest expense:

Compensation and employee benefits

95,967

89,357

6,610

7.4

Occupancy and equipment

32,246

32,159

FDIC insurance

6,386

7,195

(809)

(11.2)

Deposit account premiums

5,971

3,198

2,773

86.7

Advertising and marketing

2,617

3,160

(543)

(17.2)

Other

37,296

34,566

2,730

7.9

Subtotal

180,483

169,635

10,848

6.4

Loss on termination of debt

550,735

N.M.

Foreclosed real estate and repossessed assets, net

11,047

12,868

(1,821)

(14.2)

Operating lease depreciation

6,731

7,928

(1,197)

(15.1)

Other credit costs, net

(288)

2,548

(2,836)

(111.3)

Total non-interest expense

748,708

192,979

555,729

N.M.

(Loss) income before income tax expense

(451,732)

50,033

(501,765)

N.M.

Income tax (benefit) expense

(170,244)

18,772

(189,016)

N.M.

(Loss) income after income tax expense

(281,488)

31,261

(312,749)

N.M.

Income attributable to non-controlling interest

1,406

989

417

42.2

Net (loss) income available to common stockholders

(282,894)

30,272

(313,166)

N.M.

Other comprehensive loss:

Reclassification adjustment for securities gains

included in net income

(76,967)

N.M.

Unrealized holding losses arising during the

period on securities available for sale

(7,768)

(21,070)

13,302

(63.1)

Foreign currency hedge

(404)

(507)

103

(20.3)

Foreign currency translation adjustment

385

414

(29)

(7.0)

Recognized postretirement prior service cost

and transition obligation

(7)

(8)

N.M.

Income tax benefit

31,208

7,904

23,304

N.M.

Total other comprehensive loss

(53,553)

(13,258)

(40,295)

N.M.

Comprehensive (loss) income

(336,447)

17,014

(353,461)

N.M.

Net (loss) income per common share:

Basic

(1.78)

.21

(1.99)

N.M.

Diluted

(1.78)

.21

(1.99)

N.M.

Dividends declared per common share

.05

Average common and common equivalent

shares outstanding (in thousands):

Basic

158,506

144,395

14,112

9.8

Diluted

158,506

144,739

13,768

9.5

N.M. Not meaningful.

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

At Mar. 31

At Dec. 31

Change

2012

2011

ASSETS

Cash and due from banks

705,642

1,389,704

(684,062)

(49.2)

Investments

168,440

157,780

10,660

6.8

Securities available for sale

728,894

2,324,038

(1,595,144)

(68.6)

Loans and leases held for sale

1,918

14,321

(12,403)

(86.6)

Loans and leases:

Consumer real estate

6,815,909

6,895,291

(79,382)

(1.2)

Commercial

3,467,089

3,449,492

17,597

Leasing and equipment finance

3,118,755

3,142,259

(23,504)

(.7)

Inventory finance

1,637,958

624,700

1,013,258

162.2

Auto finance

139,047

3,628

135,419

N.M.

Other

29,178

34,885

(5,707)

(16.4)

Total loans and leases

15,207,936

14,150,255

1,057,681

7.5

Allowance for loan and lease losses

(265,293)

(255,672)

(9,621)

(3.8)

Net loans and leases

14,942,643

13,894,583

1,048,060

7.5

Premises and equipment, net

433,364

436,281

(2,917)

(.7)

Goodwill

225,640

Other assets

626,916

537,041

89,875

16.7

Total assets

17,833,457

18,979,388

(1,145,931)

(6.0)

LIABILITIES AND EQUITY

Deposits:

Checking

4,886,003

4,629,749

256,254

5.5

Savings

5,998,764

5,855,263

143,501

2.5

Money market

665,642

651,377

14,265

2.2

Subtotal

11,550,409

11,136,389

414,020

3.7

Certificates of deposit

1,208,631

1,065,615

143,016

13.4

Total deposits

12,759,040

12,202,004

557,036

4.6

Short-term borrowings

1,157,189

6,416

1,150,773

N.M.

Long-term borrowings

1,962,053

4,381,664

(2,419,611)

(55.2)

Total borrowings

3,119,242

4,388,080

(1,268,838)

(28.9)

Accrued expenses and other liabilities

405,850

510,677

(104,827)

(20.5)

Total liabilities

16,284,132

17,100,761

(816,629)

(4.8)

Equity:

Preferred stock, par value $.01 per share,

30,000,000 authorized; none issued and outstanding

Common stock, par value $.01 per share,

280,000,000 shares authorized; 162,174,546

and 160,366,380 shares issued

1,622

1,604

1.1

Additional paid-in capital

736,288

715,247

21,041

2.9

Retained earnings, subject to certain restrictions

836,995

1,127,823

(290,828)

(25.8)

Accumulated other comprehensive income

3,273

56,826

(53,553)

(94.2)

Treasury stock at cost, 42,566, and 42,566

shares, and other

(47,159)

(33,367)

(13,792)

(41.3)

Total TCF Financial Corp. stockholders’ equity

1,531,019

1,868,133

(337,114)

(18.0)

Non-controlling interest in subsidiaries

18,306

10,494

7,812

74.4

Total equity

1,549,325

1,878,627

(329,302)

(17.5)

Total liabilities and equity

17,833,457

18,979,388

(1,145,931)

(6.0)

N.M. Not meaningful.

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

Change from

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Mar. 31,

2012

2011

Delinquency Data - Principal Balances(1)

60 days or more:

Consumer real estate

First mortgage lien

88,092

87,358

78,241

74,090

70,024

734

18,068

Junior lien

15,563

22,277

18,499

17,780

19,528

(6,714)

(3,965)

Total consumer real estate

103,655

109,635

96,740

91,870

89,552

(5,980)

14,103

Commercial

3,425

1,148

3,079

6,238

1,864

2,277

1,561

Leasing and equipment finance

4,919

3,512

2,840

2,447

5,274

1,407

(355)

Inventory finance

185

160

306

145

240

(55)

Auto finance

Other

171

(26)

Subtotal

112,238

114,496

103,023

100,871

97,008

(2,258)

15,230

Acquired portfolios

2,198

3,140

1,870

2,993

4,399

(942)

(2,201)

Total delinquencies

114,436

117,636

104,893

103,864

101,407

(3,200)

13,029

Delinquency Data - % of Portfolio(1)

60 days or more:

Consumer real estate

First mortgage lien

1.93

1.89

1.68

1.58

1.48

bps

Junior lien

.74

1.04

.86

.82

.89

(30)

(15)

Total consumer real estate

1.55

1.63

1.42

1.34

1.30

(8)

Commercial

.10

.03

.09

.18

.05

Leasing and equipment finance

.17

.13

.11

.09

.20

(3)

Inventory finance

.01

.03

.04

.02

.03

(2)

Other

.20

.12

.18

.46

.22

(2)

Subtotal

.77

.85

.75

.73

.69

(8)

Acquired portfolios

.66

.84

.51

.70

.89

(18)

(23)

Total delinquencies

.77

.85

.75

.73

.70

(8)

(1) Excludes non-accrual loans and leases.

Change from

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Mar. 31,

2012

2011

Non-Accrual Loans and Leases

Non-accrual loans and leases:

Consumer real estate

First mortgage lien

125,895

129,114

130,671

129,837

133,865

(3,219)

(7,970)

Junior lien

23,409

20,257

18,223

21,069

21,325

3,152

2,084

Total consumer real estate

149,304

149,371

148,894

150,906

155,190

(67)

(5,886)

Commercial

135,677

127,519

133,260

140,407

127,745

8,158

7,932

Leasing and equipment finance

20,015

20,583

24,437

29,682

34,634

(568)

(14,619)

Inventory finance

1,109

823

1,077

634

1,437

286

(328)

Other

2,838

2,823

2,795

Total non-accrual loans and leases

308,943

298,311

307,672

321,661

319,049

10,632

(10,106)

Non-accrual loans and leases - rollforward

Balance, beginning of period

298,311

307,672

321,661

319,049

345,257

(9,361)

(46,946)

Additions

85,670

125,893

80,014

86,996

80,596

(40,223)

5,074

Charge-offs

(19,683)

(38,263)

(29,338)

(22,401)

(37,417)

18,580

17,734

Transfers to other assets

(25,603)

(31,486)

(21,654)

(27,078)

(33,541)

5,883

7,938

Return to accrual status

(21,243)

(19,932)

(20,272)

(21,985)

(24,634)

(1,311)

3,391

Payments received

(9,202)

(45,238)

(23,843)

(14,383)

(12,881)

36,036

3,679

Other, net

693

(335)

1,104

1,463

1,669

1,028

(976)

Balance, end of period

308,943

298,311

307,672

321,661

319,049

10,632

(10,106)

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA, CONTINUED

(Dollars in thousands)

(Unaudited)

Change from

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Mar. 31,

2012

2011

Other Real Estate Owned

Other real estate owned(1)

Consumer real estate

84,996

87,792

88,206

94,311

97,976

(2,796)

(12,980)

Commercial real estate

42,232

47,106

42,207

42,188

44,178

(4,874)

(1,946)

Total other real estate owned

127,228

134,898

130,413

136,499

142,154

(7,670)

(14,926)

Other real estate owned - rollforward

Balance, beginning of period

134,898

130,413

136,499

142,154

141,065

4,485

(6,167)

Transferred in

25,624

33,864

24,939

27,649

35,480

(8,240)

(9,856)

Sales

(28,601)

(25,909)

(26,095)

(28,759)

(31,328)

(2,692)

2,727

Writedowns

(5,267)

(5,719)

(6,337)

(6,741)

(6,266)

452

999

Other, net

574

2,249

1,407

2,196

3,203

(1,675)

(2,629)

Balance, end of period

127,228

134,898

130,413

136,499

142,154

(7,670)

(14,926)

Ending number of properties owned

Consumer real estate

466

465

456

488

493

(27)

Commercial real estate

(1)

Total

498

489

514

519

(21)

(1) Includes properties owned and foreclosed properties subject to redemption.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA, CONTINUED

(Dollars in thousands)

(Unaudited)

Allowance for Loan and Lease Losses

At March 31, 2012

At December 31, 2011

At March 31, 2011

Change from

% of

Dec. 31,

Mar. 31,

Balance

Portfolio

Balance

Portfolio

Balance

Portfolio

2011

Consumer real estate

183,825

2.70

183,435

2.66

174,097

2.47

bps

Commercial

50,444

1.45

46,954

1.36

50,119

1.39

Leasing and

equipment finance

21,537

.69

21,173

.67

26,272

.85

(16)

Inventory finance

7,556

.46

2,996

.48

3,344

.33

(2)

Auto finance

1,019

.73

Other

912

3.13

1,114

3.19

1,476

4.20

(6)

(107)

Total

265,293

1.74

255,672

1.81

255,308

1.73

(7)

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

Change from

Quarter Ended(1)

Quarter Ended

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Mar. 31,

2012

2011

Consumer real estate

First mortgage lien

1.66

1.94

2.29

1.78

1.81

(28)

bps

(15)

bps

Junior lien

3.03

2.63

2.99

2.75

2.39

Total consumer real estate

2.09

2.15

2.51

2.09

1.99

(6)

Commercial

.18

1.79

.57

.30

1.96

(161)

(178)

Leasing and equipment finance

.02

.46

.36

.45

.36

(44)

(34)

Inventory finance

.22

.03

.13

.10

Auto finance

.01

Other

N.M.

Total

1.06

1.63

1.48

1.19

1.51

(57)

(45)

(1) Annualized.

N.M. Non Meaningful

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

Three Months Ended March 31,

2012

2011

Average

Yields and

Average

Yields and

Balance

Interest

Rates(1)

Balance

Interest

Rates(1)

ASSETS:

Investments and other

745,861

2,388

1.29 %

578,064

1,801

1.26 %

U.S. Government sponsored entities:

Mortgage-backed securities, fixed-rate

2,087,017

19,109

3.66

1,961,234

19,411

3.96

U.S. Treasury securities

47,269

.11

Other securities

230

5.24

387

5.21

Total securities available for sale(2)

2,087,247

19,112

3.66

2,008,890

19,429

3.87

Loans and leases held for sale

5,872

3.08

Loans and leases:

Consumer real estate:

Fixed-rate

4,443,148

66,155

5.99

4,734,618

71,806

6.15

Variable-rate

2,401,915

30,068

5.03

2,367,341

30,280

5.19

Total consumer real estate

6,845,063

96,223

5.65

7,101,959

102,086

5.83

Commercial:

Fixed- and adjustable-rate

2,737,848

38,209

5.61

2,912,593

42,042

5.85

Variable-rate

719,872

7,512

4.20

710,870

7,657

4.37

Total commercial

3,457,720

45,721

5.32

3,623,463

49,699

5.56

Leasing and equipment finance

3,128,329

44,001

5.63

3,119,669

47,557

6.10

Inventory finance

1,145,183

18,725

6.58

872,785

15,325

7.12

Auto finance

85,562

1,583

7.44

Other

17,582

368

8.42

21,757

476

8.87

Total loans and leases

14,679,439

206,621

5.65

14,739,633

215,143

5.90

Total interest-earning assets

17,518,419

228,166

5.24

17,326,587

236,373

5.51

Other assets

1,379,289

1,154,433

Total assets

18,897,708

18,481,020

LIABILITIES AND EQUITY:

Non-interest bearing deposits:

Retail

1,359,781

1,457,723

Small business

708,416

668,316

Commercial and custodial

305,064

291,513

Total non-interest bearing deposits

2,373,261

2,417,552

Interest-bearing deposits:

Checking

2,214,192

902

.16

2,104,433

1,356

.26

Savings

5,882,730

5,436

.37

5,424,327

7,497

.56

Money market

662,493

610

.37

673,503

908

.55

Subtotal

8,759,415

6,948

.32

8,202,263

9,761

.48

Certificates of deposit

1,135,673

2,113

.75

1,092,537

2,243

.83

Total interest-bearing deposits

9,895,088

9,061

.37

9,294,800

12,004

.52

Total deposits

12,268,349

9,061

.30

11,712,352

12,004

.42

Borrowings:

Short-term borrowings

436,171

329

.30

83,038

.45

Long-term borrowings

3,817,165

37,966

4.00

4,702,729

49,767

4.28

Total borrowings

4,253,336

38,295

3.62

4,785,767

49,859

4.22

Total interest-bearing liabilities

14,148,424

47,356

1.35

14,080,567

61,863

1.78

Total deposits and borrowings

16,521,685

47,356

1.15

16,498,119

61,863

1.52

Other liabilities

577,142

460,434

Total liabilities

17,098,827

16,958,553

Total TCF Financial Corp. stockholders’ equity

1,785,375

1,514,572

Non-controlling interest in subsidiaries

13,506

7,895

Total equity

1,798,881

1,522,467

Total liabilities and equity

18,897,708

18,481,020

Net interest income and margin

180,810

4.14 %

174,510

4.06 %

(1) Annualized.

(2) Average balances and yields of securities available for sale are based upon the historical amortized cost and excludes equity securities.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME AND FINANCIAL RATIOS

(Dollars in thousands, except per-share data)

(Unaudited)

At or For the Three Months Ended

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

2012

2011

Interest income:

Loans and leases

205,984

205,415

210,885

213,823

214,673

Securities available for sale

19,112

22,559

22,561

20,639

19,429

Investments and other

2,433

2,333

1,997

1,836

1,801

Total interest income

227,529

230,307

235,443

236,298

235,903

Interest expense:

Deposits

9,061

9,791

11,883

11,430

12,004

Borrowings

38,295

47,082

47,496

48,718

49,859

Total interest expense

47,356

56,873

59,379

60,148

61,863

Net interest income

180,173

173,434

176,064

176,150

174,040

Provision for credit losses

48,542

59,249

52,315

44,005

45,274

Net interest income after provision for

credit losses

131,631

114,185

123,749

132,145

128,766

Non-interest income:

Fees and service charges

41,856

51,002

58,452

56,396

53,513

Card revenue

13,207

13,643

27,701

28,219

26,584

ATM revenue

6,199

6,608

7,523

7,091

6,705

Subtotal

61,262

71,253

93,676

91,706

86,802

Leasing and equipment finance

22,867

18,492

21,646

22,279

26,750

Gains on sales of auto loans

2,250

1,133

Other

2,355

1,570

786

384

694

Fees and other revenue

88,734

92,448

116,108

114,369

114,246

Gains (losses) on securities, net

76,611

5,842

1,648

(227)

Total non-interest income

165,345

98,290

117,756

114,142

114,246

Non-interest expense:

Compensation and employee benefits

95,967

82,595

87,758

89,082

89,357

Occupancy and equipment

32,246

32,366

31,129

30,783

32,159

FDIC insurance

6,386

6,647

7,363

7,542

7,195

Deposit account premiums

5,971

6,482

7,045

6,166

3,198

Advertising and marketing

2,617

2,250

1,145

3,479

3,160

Other

37,296

39,148

34,708

37,067

34,566

Subtotal

180,483

169,488

169,148

174,119

169,635

Loss on termination of debt

550,735

Foreclosed real estate and repossessed assets, net

11,047

11,323

12,430

12,617

12,868

Operating lease depreciation

6,731

6,811

7,409

7,859

7,928

Other credit costs, net

(288)

(89)

(139)

496

2,548

Total non-interest expense

748,708

187,533

188,848

195,091

192,979

(Loss) income before income tax expense

(451,732)

24,942

52,657

51,196

50,033

Income tax (benefit) expense

(170,244)

7,424

19,159

19,086

18,772

(Loss) income after income tax expense

(281,488)

17,518

33,498

32,110

31,261

Income attributable to non-controlling interest

1,406

1,075

1,243

1,686

989

Net (loss) income available to common stockholders

(282,894)

16,443

32,255

30,424

30,272

Other comprehensive (loss) income:

Unrealized holding (losses) gains arising during the

period on securities available for sale

(7,768)

(4,334)

116,958

31,084

(21,070)

Recognized postretirement prior service cost

and transition obligation

(7)

305

Reclassification adjustment for securities gains

included in net income

(76,967)

(6,130)

(1,915)

Foreign currency translation adjustment

385

443

(1,410)

120

414

Foreign currency hedge

(404)

(458)

1,319

(93)

(507)

Income tax benefit (expense)

31,208

3,890

(42,643)

(11,362)

7,904

Total other comprehensive (loss) income

(53,553)

(6,284)

72,310

19,750

(13,258)

Comprehensive (loss) income

(336,447)

10,159

104,565

50,174

17,014

Net (loss) income per common share:

Basic

(1.78)

.10

.20

.19

.21

Diluted

(1.78)

.10

.20

.19

.21

Dividends declared per common share

.05

Financial Ratios:(1)

Return on average assets

(5.96)

.37

.71

.68

Return on average common equity

(63.38)

3.55

7.12

7.00

8.00

Net interest margin

4.14

3.92

3.96

4.02

4.06

(1) Annualized.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS

(In thousands)

(Unaudited)

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

2012

2011

ASSETS

Cash and due from banks

863,310

1,175,118

1,078,521

802,812

677,695

Investments

168,805

162,359

162,717

166,039

172,309

U.S. Government sponsored entities:

Mortgage-backed securities

2,021,574

2,374,026

2,357,865

2,153,016

1,979,648

U.S. Treasury securities

10,761

135,613

47,269

Other securities

1,678

1,816

2,132

2,360

2,578

Total securities available for sale

2,023,252

2,375,842

2,370,758

2,290,989

2,029,495

Loans and leases held for sale

5,872

4,822

Loans and leases:

Consumer real estate:

Fixed-rate

4,443,148

4,528,165

4,592,855

4,655,198

4,734,618

Variable-rate

2,401,915

2,404,886

2,392,966

2,379,250

2,367,341

Total consumer real estate

6,845,063

6,933,051

6,985,821

7,034,448

7,101,959

Commercial:

Fixed- and adjustable-rate

2,737,848

2,775,219

2,853,117

2,877,903

2,912,593

Variable-rate

719,872

701,441

711,081

719,741

710,870

Total commercial

3,457,720

3,476,660

3,564,198

3,597,644

3,623,463

Leasing and equipment finance

3,128,329

3,043,329

3,066,208

3,068,550

3,119,669

Inventory finance

1,145,183

766,885

826,198

978,505

872,785

Auto finance

85,562

1,442

Other

17,582

17,944

18,183

19,463

21,757

Total loans and leases

14,679,439

14,239,311

14,460,608

14,698,610

14,739,633

Allowance for loan and lease losses

(257,895)

(251,158)

(253,547)

(255,441)

(263,014)

Net loans and leases

14,421,544

13,988,153

14,207,061

14,443,169

14,476,619

Premises and equipment, net

435,412

436,715

439,288

442,529

445,093

Goodwill

225,640

179,070

152,599

Other assets

753,873

598,367

582,290

498,194

527,210

Total assets

18,897,708

18,920,446

18,993,234

18,796,331

18,481,020

LIABILITIES AND EQUITY

Non-interest-bearing deposits:

Retail

1,359,781

1,330,462

1,396,857

1,475,191

1,457,723

Small business

708,416

738,867

704,272

683,323

668,316

Commercial and custodial

305,064

303,216

294,253

278,809

291,513

Total non-interest bearing deposits

2,373,261

2,372,545

2,395,382

2,437,323

2,417,552

Interest-bearing deposits:

Checking

2,214,192

2,096,340

2,103,184

2,152,646

2,104,433

Savings

5,882,730

5,859,147

5,789,188

5,608,823

5,424,327

Money market

662,493

662,024

650,598

648,862

673,503

Subtotal

8,759,415

8,617,511

8,542,970

8,410,331

8,202,263

Certificates of deposit

1,135,673

1,112,735

1,114,934

1,092,368

1,092,537

Total interest-bearing deposits

9,895,088

9,730,246

9,657,904

9,502,699

9,294,800

Total deposits

12,268,349

12,102,791

12,053,286

11,940,022

11,712,352

Borrowings:

Short-term borrowings

436,171

37,081

43,073

35,227

83,038

Long-term borrowings

3,817,165

4,387,036

4,403,724

4,513,301

4,702,729

Total borrowings

4,253,336

4,424,117

4,446,797

4,548,528

4,785,767

Accrued expenses and other liabilities

577,142

538,148

672,944

556,641

460,434

Total liabilities

17,098,827

17,065,056

17,173,027

17,045,191

16,958,553

Equity:

Preferred stock

Common stock

1,617

1,602

1,598

1,594

1,463

Additional paid-in capital

727,596

711,914

705,366

698,683

503,852

Retained earnings, subject to certain restrictions

1,052,632

1,121,866

1,105,322

1,081,101

1,058,395

Accumulated other comprehensive income (loss)

46,029

48,618

34,073

(8,819)

(26,177)

Treasury stock at cost and other

(42,499)

(33,032)

(33,008)

(33,036)

(22,961)

Total TCF Financial Corp. stockholders’ equity

1,785,375

1,850,968

1,813,351

1,739,523

1,514,572

Non-controlling interest in subsidiaries

13,506

4,422

6,856

11,617

7,895

Total equity

1,798,881

1,855,390

1,820,207

1,751,140

1,522,467

Total liabilities and equity

$18,897,708

$18,920,446

18,993,234

18,796,331

18,481,020

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY YIELDS AND RATES(1)

(Unaudited)

	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
	2012		2011		2011		2011		2011

ASSETS

Investments and other	1.29	%	.84	%	.83	%	1.06	%	1.26	%
U.S. Government sponsored entities:
Mortgage-backed securities, fixed-rate	3.66		3.79		3.86		3.92		3.96
U.S. Treasury securities	-		-		.04		.06		.11
Other securities	5.24		3.36		4.68		5.68		5.21
Total securities available for sale(2)	3.66		3.79		3.84		3.69		3.87
Loans and leases held for sale	3.08		10.78		-		-		-
Loans and leases:
Consumer real estate:
Fixed-rate	5.99		6.04		6.06		6.08		6.15
Variable-rate	5.03		5.09		5.11		5.15		5.19
Total consumer real estate	5.65		5.71		5.73		5.77		5.83
Commercial:
Fixed- and adjustable-rate	5.61		5.68		5.72		5.78		5.85
Variable-rate	4.20		4.28		4.33		4.32		4.37
Total commercial	5.32		5.40		5.44		5.49		5.56
Leasing and equipment finance	5.63		5.88		6.01		6.02		6.10
Inventory finance	6.58		7.12		7.28		7.11		7.12
Auto finance	7.44		3.30		-		-		-
Other	8.42		8.91		8.44		9.01		8.87
Total loans and leases	5.65		5.75		5.81		5.85		5.90

Total interest-earning assets	5.24		5.20		5.28		5.38		5.51

LIABILITIES

Interest-bearing deposits:
Checking	.16		.15		.20		.23		.26
Savings	.37		.42		.54		.52		.56
Money market	.37		.37		.42		.45		.55
Subtotal	.32		.35		.45		.44		.48
Certificates of deposit	.75		.75		.79		.81		.83
Total interest-bearing deposits	.37		.40		.49		.48		.52
Total deposits	.30		.32		.39		.38		.42
Borrowings:
Short-term borrowings	.30		.29		.29		.24		.45
Long-term borrowings	4.00		4.26		4.28		4.33		4.28
Total borrowings	3.62		4.23		4.24		4.29		4.22

Total interest-bearing liabilities	1.35		1.59		1.67		1.72		1.78

Net interest margin	4.14	%	3.92	%	3.96	%	4.02	%	4.06	%

(1) Annualized.

(2) Average yields of securities available for sale are based upon the historical amortized cost and excludes equity securities.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES(1)

(Dollars in thousands)

(Unaudited)

	At Mar. 31,			At Dec. 31,
	2012			2011
Computation of total equity to total assets:
Total equity	$	1,549,325		$	1,878,627
Total assets	17,833,457			18,979,388
Total equity to total assets	8.69		%	9.90		%

Computation of tangible realized common equity to tangible assets:
Total equity	1,549,325			1,878,627
Less: Non-controlling interest in subsidiaries	18,306			10,494
Total TCF Financial Corp. stockholders’ equity	1,531,019			1,868,133
Less:
Goodwill	225,640			225,640
Other intangibles	6,803			7,134
Accumulated other comprehensive income	3,273			56,826
Tangible realized common equity	$	1,295,303		$	1,578,533

Total assets	$	17,833,457		$	18,979,388
Less:
Goodwill	225,640			225,640
Other intangibles	6,803			7,134
Tangible assets	$	17,601,014		$	18,746,614

Tangible realized common equity to tangible assets	7.36		%	8.42		%

	At Mar. 31,			At Dec. 31,
	2012			2011
Computation of tier 1 risk-based capital ratio:
Total tier 1 capital	$	1,431,565		$	1,706,926
Total risk-weighted assets	$	14,357,389		$	13,475,330
Total tier 1 risk-based capital ratio	9.97		%	12.67		%

Computation of tier 1 common capital ratio:
Total tier 1 capital	$	1,431,565		$	1,706,926
Less:
Qualifying trust preferred securities	115,000			115,000
Qualifying non-controlling interest in subsidiaries	18,306			10,494
Total tier 1 common capital	$	1,298,259		$	1,581,432

Total tier 1 common capital ratio	9.04		%	11.74		%

(1) In contrast to GAAP-basis and regulatory capital-basis measures, tangible realized common equity excludes the effect of goodwill, other intangibles and accumulated other comprehensive income (loss) and the total tier 1 common capital ratio excludes the effect of qualifying trust preferred securities and qualifying non-controlling interest in subsidiaries. Management reviews these ratios as ongoing measures and has included this information because of current interest in the industry. The methodology for calculating these ratios may vary between companies.

###

TCF FINANCIAL CORP - FORM 8-K - EX-99.1 - April 19, 2012

Attached files

TCF FINANCIAL CORP Reports