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

Attached files

file	filename
8-K - 8-K - TCF FINANCIAL CORP	a12-25009_18k.htm
EX-99.2 - EX-99.2 - TCF FINANCIAL CORP	a12-25009_1ex99d2.htm

Exhibit 99.1

NEWS RELEASE

CONTACT: Jason Korstange

(952) 745-2755

tcfbank.com

FOR IMMEDIATE RELEASE

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

TCF Reports Net Income of $9.3 Million, or 6 Cents Per Share

THIRD QUARTER HIGHLIGHTS

-	Net interest margin of 4.85 percent, up 89 bps from the third quarter of 2011
-	Pre-tax pre-provision profit of $115.8 million, up 10.3 percent from the third quarter of 2011
-	Over 60-day accruing delinquent loans improved by $10.4 million from the second quarter of 2012
-	Provision for credit losses of $96.3 million includes $31.5 million related to regulatory guidance
-	Total loans and leases of $15.2 billion, increase of 6.1 percent from September 30, 2011
-	Announced common and preferred stock dividend payments, payable November 30, 2012 and December 3, 2012, respectively

Summary of Financial Results																			Table 1
($ in thousands, except per-share data)										Percent Change
	3Q			2Q				3Q	3Q12 vs			3Q12 vs		YTD				YTD	Percent
	2012			2012				2011		2Q12		3Q11		2012 (3)				2011	Change
Net income (loss)	$	9,322		$	31,531		$	32,255		(70.4)	%	(71.1)	%	$	(242,041)		$	92,951		N.M.	%
Net interest income		200,559			198,224			176,064		1.2		13.9			578,956			526,254		10.0
Pre-tax pre-provision profit(1)		115,809			108,117			104,972		7.1		10.3			371,471			295,480		25.72
Diluted earnings (loss) per common share		.06			.20			.20		(70.0)		(70.0)			(1.52)			.60		N.M.

Financial Ratios(2)
Return on average assets		.30	%		.76	%		.71	%						(1.73)	%		.69	%
Return on average common equity		2.36			8.13			7.12							(19.50)			7.33
Net interest margin		4.85			4.86			3.96							4.61			4.01
Net charge-offs as a percentage of
average loans and leases		2.74			1.18			1.48							1.67			1.39

N.M. = Not meaningful.
(1) Pre-tax pre-provision profit (“PTPP”) is calculated as total revenues less non-interest expense. Year-to-date 2012 PTPP excludes the net loss of
$473.8 million related to the balance sheet repositioning completed in the first quarter of 2012.
(2) Annualized.
(3) Includes a net, after-tax charge of $295.8 million, or $1.87 per share, related to repositioning certain investments and borrowings.

WAYZATA, MN, October 26, 2012 – TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported net income for the third quarter of 2012 of $9.3 million, compared with net income of $32.3 million in the third quarter of 2011 and net income of $31.5 million for the second quarter of 2012. Net income for the third quarter of 2012 included a net after-tax charge of $20.6 million, or 13 cents per common share, related to the implementation of clarifying regulatory guidance requiring loans subject to a borrower’s discharge from personal liability following Chapter 7 bankruptcy, to be reported as non-accrual loans, and written down to the estimated collateral value, regardless of delinquency status. Of these loans, 93 percent were less than 60 days past due on their payments as of September 30, 2012. Diluted earnings per common share was 6 cents for the third quarter of 2012, compared with diluted earnings per common share of 20 cents in both the third quarter of 2011 and the second quarter of 2012.

TCF reported a net loss of $242 million for the first nine months of 2012, compared with net income of $93 million for the same period in 2011. The net loss for the first nine months of 2012 included a net, after-tax charge of $295.8 million, or $1.87 per common share, related to a balance sheet repositioning involving certain investments and borrowings as well as the after-tax charge of $20.6 million, or 13 cents per common share, related to the implementation of clarifying bankruptcy-related regulatory guidance. Diluted loss per common share for the first nine months of 2012 was $1.52, compared with diluted earnings per common share of 60 cents for the same period in 2011.

TCF declared a quarterly cash dividend of 5 cents per common share payable on November 30, 2012 to stockholders of record at the close of business on November 15, 2012. TCF also declared a dividend on its 7.50 percent Series A Non-cumulative Perpetual Preferred Stock payable on December 3, 2012, to stockholders of record at the close of business on November 15, 2012.

Chairman’s Statement

“TCF’s third quarter results were impacted by incremental charge-offs reported in accordance with regulatory guidance and by increased provision in the commercial portfolio as we aggressively addressed credit issues in the area,” said William A. Cooper, Chairman and Chief Executive Officer. “While these credit-related items were notable in the third quarter, there has been much accomplished throughout the bank in the first nine months of 2012, a building and investing year for TCF.

-more-

“We continue to experience the benefits of the first quarter repositioning of our balance sheet with increased net interest margin, reduction of mark-to-market risk on securities and a pre-tax pre-provision profit that is one of the strongest in the industry. In addition, our national lending businesses continue to contribute to the bottom line with Gateway One, our new auto finance business, being integrated into TCF and originating high quality loans into the portfolio and our inventory finance business completing the integration of our BRP relationship; increasing outstanding balances in a challenging growth market.”

Another encouraging sign was our success in bringing back Free Checking. Upon review of the first full quarter impact, we saw the results we expected with increased checking account production, decreased attrition and overall net checking account growth.

“While the third quarter results were not what we anticipated due to the impact of the adoption of the clarifying regulatory guidance, we believe we are on the right track as we work through the remainder of 2012 and move forward with our strategy into 2013.”

-more-

Revenue

Total Revenue																				Table 2
										Percent Change
		3Q			2Q			3Q		3Q12 vs		3Q12 vs			YTD			YTD		Percent
($ in thousands)		2012			2012			2011		2Q12		3Q11			2012			2011		Change
Net interest income	$	200,559		$	198,224		$	176,064		1.2	%	13.9	%	$	578,956		$	526,254		10.0	%
Fees and other revenue:
Fees and service charges		43,745			48,090			58,452		(9.0)		(25.2)			133,691			168,361		(20.6)
Card revenue		12,927			13,530			27,701		(4.5)		(53.3)			39,664			82,504		(51.9)
ATM revenue		6,122			6,276			7,523		(2.5)		(18.6)			18,597			21,319		(12.8)
Total banking fees		62,794			67,896			93,676		(7.5)		(33.0)			191,952			272,184		(29.5)
Leasing and equipment finance		20,498			23,207			21,646		(11.7)		(5.3)			66,572			70,675		(5.8)
Gains on sales of auto loans		7,486			5,496			-		36.2		N.M.			15,232			-		N.M.
Gain on sale of consumer real estate loans		4,559			-			-		N.M.		N.M.			4,559			-		N.M.
Other		3,688			3,168			786		16.4		N.M.			9,211			1,864		N.M.
Total fees and other revenue		99,025			99,767			116,108		(.7)		(14.7)			287,526			344,723		(16.6)
Subtotal		299,584			297,991			292,172		.5		2.5			866,482			870,977		(.5)
Gains on securities, net		13,033			13,116			1,648		(.6)		N.M.			102,760			1,421		N.M.
Total revenue	$	312,617		$	311,107		$	293,820		.5		6.4		$	969,242		$	872,398		11.1

Net interest margin(1)		4.85	%		4.86	%		3.96	%						4.61	%		4.01	%
Fees and other revenue as
a % of total revenue		31.68			32.07			39.52							29.67			39.51

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

Net Interest Income

· Net interest income for the third quarter of 2012 increased $24.5 million, or 13.9 percent, compared with the third quarter of 2011. The increase was due to the balance sheet repositioning completed in the first quarter of 2012, which resulted in a $37.9 million reduction to the cost of borrowings, partially offset by a $16 million reduction of interest income on lower levels of mortgage-backed securities and by higher average balances of inventory and auto finance loans. Offsetting the increase in net interest income were lower yields on leasing and equipment finance loans and leases and consumer and commercial real estate loans as higher yielding loans prepay or refinance and are replaced with lower yielding loans in the current rate environment.

· Net interest income for the third quarter of 2012 increased $2.3 million, or 1.2 percent, compared with the second quarter of 2012. The increase in net interest income from the second quarter of 2012 was primarily due to a higher average balance of auto finance loans. This was partially offset by a

-more-

seasonally lower average balance of inventory finance loans. Additionally, interest expense decreased due to the redemption of $115 million of Trust Preferred securities, partially offset by both the issuance of $110 million of subordinated debt and slightly higher deposit expenses due to product mix, primarily in certificates of deposit.

· Net interest margin in the third quarter of 2012 was 4.85 percent, compared with 3.96 percent in the third quarter of 2011 and 4.86 percent in the second quarter of 2012. The increase from the third quarter of 2011 was primarily due to a lower average cost of borrowings due to the effects of the balance sheet repositioning, which increased net interest margin by 92 basis points.

· At September 30, 2012, interest-bearing deposits held at the Federal Reserve and unencumbered securities were $1.3 billion, a decrease of $189 million from the third quarter of 2011 and $156 million from the second quarter of 2012.

Non-interest Income

· Banking fees and service charges in the third quarter of 2012 were $43.7 million, down $14.7 million, or 25.2 percent, from the third quarter of 2011, and down $4.3 million, or 9 percent, from the second quarter of 2012. The decrease in banking fees and revenues from the third quarter of 2011 was primarily due to lower transaction volume related to a lower account base driven by our deposit product fee structure changes. The decrease from the second quarter of 2012 was primarily due to the decrease in monthly maintenance fee revenue resulting from the reintroduction of free checking products.

· Card revenues were $12.9 million in the third quarter of 2012, a decrease of $14.8 million, or 53.3 percent, from the third quarter of 2011 and down $603 thousand, or 4.5 percent, from the second quarter of 2012. The decrease from the prior year is due to debit card interchange regulations which took effect on October 1, 2011. The decrease in card revenue from the second quarter of 2012 was primarily due to a decrease in transaction volume.

· TCF sold $161.1 million of auto loans and recognized $7.5 million in associated gains during the third

-more-

quarter of 2012, compared with the sale of $144.1 million of auto loans and recognition of $5.5 million in associated gains during the second quarter of 2012.

· TCF sold $136.7 million of consumer real estate loans and $164.7 million of mortgage-backed securities and recognized $4.6 million and $13.2 million in associated gains, respectively, during the third quarter of 2012.

Loans and Leases

Period-End and Average Loans and Leases															Table 3
							Percent Change
($ in thousands)	3Q 2012		2Q 2012		3Q 2011		3Q12 vs 2Q12		3Q12 vs 3Q11		YTD 2012		YTD 2011		Percent Change
Period-End:
Consumer real estate	$	6,648,036	$	6,811,784	$	6,970,821	(2.4)	%	(4.6)	%
Commercial	3,511,234		3,523,070		3,495,797		(.3)		.4
Leasing and equipment finance	3,157,977		3,151,105		3,011,795		.2		4.9
Inventory finance	1,466,269		1,457,263		828,214		.6		77.0
Auto finance	407,091		262,188		-		55.3		N.M.
Other	27,610		29,094		33,088		(5.1)		(16.6)
Total	$	15,218,217	$	15,234,504	$	14,339,715	(.1)		6.1

Average:
Consumer real estate	$	6,729,254	$	6,793,415	$	6,985,821	(.9)		(3.7)		$	6,789,026	$	7,040,318	(3.6)	%
Commercial	3,538,111		3,492,049		3,564,198		1.3		(.7)		3,496,114		3,594,884		(2.7)
Leasing and equipment finance	3,164,592		3,145,914		3,066,208		.6		3.2		3,146,345		3,084,613		2.0
Inventory finance	1,440,298		1,571,004		826,198		(8.3)		74.3		1,392,828		889,709		56.5
Auto finance	367,271		223,893		-		64.0		N.M.		226,092		-		N.M.
Other	16,280		17,647		18,183		(7.7)		(10.5)		17,166		19,788		(13.3)
Total	$	15,255,806	$	15,243,922	$	14,460,608	.1		5.5		$	15,067,571	$	14,629,312	3.0

N.M. = Not meaningful.

· Loans and leases were $15.2 billion at September 30, 2012, an increase of $878.5 million, or 6.1 percent, compared with September 30, 2011, and nearly flat compared with June 30, 2012. The increase from 2011 was due to new programs in inventory finance, the addition of auto finance and growth in equipment finance and commercial banking, partially offset by the third quarter 2012 sale and net run off of consumer real estate loans.

· Auto finance loans are expected to continue growing as Gateway One Lending and Finance, LLC (“Gateway One”) expands its number and geographic coverage of active dealers in its network by expanding its sales force. Gateway One increased its portfolio of managed loans, which includes portfolio loans, loans held for sale, and loans sold and serviced for others, by 31.3 percent to $1 billion

-more-

at September 30, 2012 from $780.3 million at June 30, 2012. Gateway One expanded its active dealers to 6,087 at September 30, 2012 from 5,420 at June 30, 2012.

· Originations were $2.4 billion for the third quarter of 2012, an increase of $1.2 billion, or 92 percent, compared with the third quarter of 2011. This increase was primarily due to growth in our national lending businesses (leasing and equipment finance, inventory finance and auto finance) and includes the high velocity of fundings and repayments with dealers in the inventory finance business. Originations decreased $188 million, or 7.2 percent, compared with the second quarter of 2012, due to slower seasonal transactions in the inventory finance portfolio, partially offset by growth in auto finance.

· Average loans and leases were $15.3 billion at September 30, 2012, an increase of $795 million, or 5.5 percent, compared with September 30, 2011, and an increase of $11.9 million, or .1 percent, compared with June 30, 2012. The increase from June 30, 2012 was primarily due to growth in the auto finance portfolio, partially offset by a decrease in the average inventory finance portfolio due to lower seasonal levels of transactions. The increase from September 30, 2011 was primarily due to growth in the inventory finance portfolio due to the funding of dealers of BRP products, as well as the addition of the auto finance portfolio in the fourth quarter of 2011.

-more-

Credit Quality

Credit Trends

Table 4

(In millions)

(At or for the Quarter Ended)

(1) Includes non-accrual loans and leases and other real estate owned.

(2) Excludes acquired portfolios and non-accrual loans and leases.

(3) Excludes the impact of implementation of clarifying bankruptcy-related regulatory guidance.

· Over 60-day delinquencies improved slightly from June 30, 2012 and net charge-offs increased primarily due to $43.9 million in charge-offs related to the implementation of clarifying bankruptcy-related regulatory guidance in the third quarter of 2012, as well as more aggressive commercial loan workouts. Non-performing assets increased from the second quarter due to the implementation of clarifying bankruptcy-related regulatory guidance in the third quarter of 2012 which caused an increase in consumer real estate non-accrual loans of $103.2 million, partially offset by decreases in other real estate owned and non-accrual loans in leasing and equipment finance.

· The over 60-day delinquency rate was .67 percent, down from .73 percent at June 30, 2012 and down from .75 percent at September 30, 2011. The decrease from the third quarter of 2011 and second quarter

-more-

of 2012 was primarily due to improvements in commercial and leasing and equipment finance delinquencies.

· Non-accrual loans and leases were $421.8 million at September 30, 2012, an increase of $97.4 million, or 30 percent, from June 30, 2012 and an increase of $114.1 million, or 37.1 percent, from September 30, 2011. The increase from June 30, 2012 was primarily due to $103.2 million of additional consumer non-accrual loans resulting from the implementation of clarifying bankruptcy-related regulatory guidance in the third quarter of 2012. Of these loans, 93 percent were less than 60 days past due on their payments as of September 30, 2012. These increases were partially offset by decreases in leasing and equipment finance non-accrual loans. The increase from September 30, 2011 was primarily due to the implementation of clarifying bankruptcy-related regulatory guidance as well as increased commercial real estate non-accrual loans. Of the commercial and leasing non-accrual loans and leases, which totaled $185.2 million at September 30, 2012, 75.6 percent were less than 60 days past due.

· Other real estate owned was $120.4 million at September 30, 2012, a decrease of $5.5 million from June 30, 2012 and a decrease of $10 million from September 30, 2011. The decrease from September 30, 2011 was primarily due to a decrease in the number of consumer properties owned.

-more-

Allowance for Loan and Lease Losses

Credit Quality Summary																				Table 6
($ in thousands)										Percent Change
Allowance for Loan and Lease Losses	3Q 2012			2Q 2012			3Q 2011			3Q12 vs 2Q12		3Q12 vs 3Q11		YTD 3Q12			YTD 3Q11			Percent Change
Balance at beginning of period	$	274,161		$	265,293		$	255,472		3.3	%	7.3	%	$	255,672		$	265,819		(3.8	)%
Charge-offs	(108,714		)	(49,833		)	(57,761		)	118.2		88.2		(203,223		)	(167,323		)	21.5
Recoveries	4,260			4,974			4,359			(14.4	)	(2.3	)	14,976			14,263			5.0
Net charge-offs	(104,454		)	(44,859		)	(53,402		)	132.8		95.6		(188,247		)	(153,060		)	23.0
Provision for credit losses	96,275			54,106			52,315			77.9		84.0		198,923			141,594			40.5
Other	(1,141		)	(379		)	(60		)	N.M	.	N.M	.	(1,507		)	(28		)	N.M	.
Balance at end of period	$	264,841		$	274,161		$	254,325		(3.4	)	4.1		$	264,841		$	254,325		4.1

Net charge-offs as a percentage of average loans and leases(1)
Consumer real estate
First mortgage lien	3.60		%	1.58		%	2.29		%	202	bps	131	bps	2.26			1.96			30	bps
Junior lien	6.12			3.07			2.99			305		313		4.10			2.70			140
Total consumer real estate	4.44			2.05			2.51			239		193		2.85			2.19			66
Commercial	2.32			.97			.57			135		175		1.16			.95			21
Leasing and equipment finance	.95			.15			.36			80		59		.37			.39			(2	)
Inventory finance	.12			.06			.13			6		(1	)	.13			.12			1
Auto finance	.30			.14			-			16		30		.21			-			21
Other	N.M		.	N.M		.	N.M		.	N.M	.	N.M	.	N.M		.	N.M		.	N.M	.
Total	2.74			1.18			1.48			156		126		1.67			1.39			28

Allowance as a percentage of period end loans and leases	1.74		%	1.80		%	1.77		%					1.74		%	1.77		%
Ratio of allowance to net charge-offs(1)	.60		X	1.50		X	1.20		X					1.10		X	1.20		X

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

· Allowance for loan and lease losses was $264.8 million, or 1.7 percent of loans and leases, a decrease of $9.4 million, compared with $274.2 million, or 1.8 percent of loans and leases, at June 30, 2012 and an increase of $10.5 million, compared with $254.3 million, or 1.8 percent of loans and leases, at September 30, 2011.

· Provision for credit losses was $96.3 million, an increase of $42.2 million from the second quarter of 2012 and an increase of $44 million from the third quarter of 2011. The increase from both periods was primarily due to an additional provision recorded for consumer real estate loans of $31.5 million related to the implementation of clarifying bankruptcy-related regulatory guidance and increased provision in the commercial portfolio as we aggressively addressed credit issues in this area in the third quarter of 2012.

-more-

· Net loan and lease charge-offs were $104.5 million, or 2.74 percent, annualized, of average loans and leases, up $59.6 million, or 1.2 percent, annualized, of average loans and leases, from the second quarter of 2012 and up $51.1 million, or 1.5 percent, annualized, of average loans and leases, from the third quarter of 2011. Excluding the additional net charge-offs of $43.9 million related to the implementation of bankruptcy-related regulatory guidance, net loan and lease charge-offs were $61 million up $16 million from the second quarter of 2012. The increase in net charge-offs from the second quarter of 2012 and third quarter of 2011, excluding the additional net charge-offs due to the bankruptcy-related regulatory guidance, was primarily due to increased net charge-offs on a small population of commercial loans, which was driven by a more aggressive workout approach and the charge off of one large lease exposure.

Deposits

Average Deposits															Table 7
							Percent Change
($ in thousands)	3Q 2012		2Q 2012		3Q 2011		3Q12 vs 2Q12		3Q12 vs 3Q11		YTD 2012		YTD 2011		Percent Change

Checking	$	4,582,088	$	4,636,700	$	4,475,566	(1.2	)%	2.4	%	$	4,594,572	$	4,515,916	1.7	%
Savings	6,173,524		6,053,264		5,812,187		2.0		6.2		6,044,442		5,629,620		7.4
Money market	848,899		748,016		650,598		13.5		30.5		753,486		657,570		14.6
Subtotal	11,604,511		11,437,980		10,938,351		1.5		6.1		11,392,500		10,803,106		5.5
Certificates	1,953,208		1,608,654		1,114,935		21.4		75.2		1,567,258		1,100,029		42.5
Total average deposits	$	13,557,719	$	13,046,634	$	12,053,286	3.9		12.5		$	12,959,758	$	11,903,135	8.9

Average interest rate on deposits(1)	.32%		.31%		.39%						.31%		.40%

(1) Annualized.

· Total average deposits increased $1.5 billion, or 12.5 percent, from the third quarter of 2011 and increased $511.1 million, or 3.9 percent, from the second quarter of 2012. The increase from the third quarter of 2011 was primarily due to the assumption of $778 million of deposits from Prudential Bank & Trust, FSB (“PB&T”) in June 2012 and the reintroduction of free checking and special programs for certificates of deposits. The increase from the second quarter of 2012 is primarily due to increased certificates of deposit due to special promotions on these products in the third quarter of 2012, as well as

-more-

the full quarter average of the PB&T deposits.

· The average interest cost of deposits in the third quarter of 2012 was .32 percent, down 7 basis points from the third quarter of 2011 and up 1 basis point from the second quarter of 2012. The decrease in the average interest cost of deposits from the third quarter of 2011 was primarily due to pricing strategies on certain deposit products, partially offset by higher average interest costs on the PB&T deposits.

Non-interest Expense

Non-interest Expense																Table 8
								Percent Change
($ in thousands)	3Q 2012		2Q 2012		3Q 2011			3Q12 vs 2Q12		3Q12 vs 3Q11		YTD 2012		YTD 2011		Percent Change
Compensation and employee benefits	$	98,409	$	97,787	$	87,758		.6	%	12.1	%	$	292,163	$	266,197	9.8	%
Occupancy and equipment	33,006		32,731		31,129			.8		6.0		97,983		94,071		4.2
FDIC insurance	6,899		8,469		7,363			(18.5	)	(6.3	)	21,754		22,100		(1.6	)
Advertising and marketing	4,248		5,404		1,145			(21.4	)	N.M	.	12,269		7,784		57.6
Deposit account premiums	485		1,690		7,045			(71.3	)	(93.1	)	8,146		16,409		(50.4	)
Operating lease depreciation	6,325		6,417		7,409			(1.4	)	(14.6	)	19,473		23,196		(16.1	)
Other	36,173		36,956		34,708			(2.1	)	4.2		110,425		106,341		3.8
Core operating expenses	185,545		189,454		176,557			(2.1	)	5.1		562,213		536,098		4.9
Loss on termination of debt	-		-		-			-		-		550,735		-		N.M	.
Foreclosed real estate and repossessed assets, net	10,670		12,059		12,430			(11.5	)	(14.2	)	33,776		37,915		(10.9	)
Other credit costs, net	593		1,476		(139		)	(59.8	)	N.M	.	1,781		2,905		(38.7	)
Total non-interest expense	$	196,808	$	202,989	$	188,848		(3.0	)	4.2		$	1,148,505	$	576,918	99.1

N.M. = Not meaningful.

· Compensation and employee benefits expense increased $10.7 million, or 12.1 percent, from the third quarter of 2011 and increased $622 thousand, or .6 percent, from the second quarter of 2012. The increase from the third quarter of 2011 was primarily due to Gateway One, acquired in November 2011, as well as increased staffing levels to support the increased assets of the BRP program in Inventory Finance. The increase from the second quarter of 2012 was primarily due to higher salary expense in the auto finance business as it ramps up capacity to originate and service higher loan volumes.

· The combined expense associated with Advertising, marketing and deposit account premiums decreased $3.5 million from the third quarter of 2011 and decreased $2.4 million compared with the second quarter of 2012.

-more-

The decreases are attributable to TCF’s shift in strategy for acquiring high quality accounts through the re-introduction of a free checking product, versus the utilization of high dollar premiums.

· Foreclosed real estate and repossessed asset expense decreased $1.8 million, or 14.2 percent, from the third quarter of 2011 and decreased $1.4 million, or 11.5 percent, from the second quarter of 2012. The decrease from the third quarter of 2011 was primarily due to fewer consumer real estate properties owned. The decrease from the second quarter of 2012 was primarily due to decreased write-downs on commercial real estate properties owned.

Capital and Borrowing Capacity

Capital Information						Table 9
At period end
($ in thousands, except per-share data)		3Q 2012					4Q 2011
Total equity	$	1,764,669				$	1,878,627
Total equity to total assets	9.87		%			9.90		%
Book value per common share	$	9.71				$	11.65
Tangible realized common equity to tangible assets(1)	7.55		%			8.42		%

Risk-based capital
Tier 1	$	1,515,050		10.40	%	$	1,706,926		12.67	%
Total(2)	1,887,488			12.96		1,994,875			14.80

Tier 1 leverage capital	$	1,515,050		8.66	%	$	1,706,926		9.15	%

Tier 1 common capital(3)	$	1,335,124		9.17	%	$	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 Company’s capital ratios continue to be in excess of “Well-capitalized” regulatory benchmarks.
(3) Excludes the effect of preferred shares, qualifying trust preferred securities and qualifying non-controlling interest in subsidiaries (see “Reconciliation of GAAP to Non-GAAP Measures” table).

· On July 30, 2012, TCF redeemed all of its $115 million Trust Preferred securities.

· TCF’s Tier 1 common capital ratio decreased to 9.17 percent from 9.26 percent at June 30, 2012.

· On October 25, 2012, the Board of Directors of TCF declared a regular quarterly cash dividend of 5 cents per common share payable on November 30, 2012, to stockholders of record at the close of business on November 15, 2012. TCF also declared a dividend on the 7.50 percent Series A Non-cumulative Perpetual Preferred Stock payable on December 3, 2012, to stockholders of record at the close of business on November 15, 2012.

· At September 30, 2012, TCF had $2.4 billion in unused, secured borrowing capacity at the FHLB of Des Moines, $531 million in unused, secured borrowing capacity at the Federal Reserve Discount Window and $571 million in unused borrowing capacity under existing federal funds lines.

-more-

Webcast Information

A live webcast of TCF’s conference call to discuss third quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on October 26, 2012 at 8:00 a.m. CT. A slide presentation for the call will be available on the website prior to the call. 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 $17.9 billion in total assets at September 30, 2012. TCF has nearly 430 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, 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, commercial inventory finance business in the U.S. and Canada, and indirect auto finance business in 40 states. For more information about TCF, please visit http://ir.tcfbank.com.

-more-

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.

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 or expense; 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 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 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

-more-

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 or the success of TCF’s reintroduction of the Free Checking product 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 including the announcement on July 11, 2012 by SuperValu that it is exploring strategic alternatives; 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, limitations on TCF’s ability to attract and retain manufacturers and dealers to expand the inventory finance business or dealers in connection with its expansion of the automobile finance business.

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, deposit or leasing activities including account servicing processes or fees or charges, or employment practices, and possible increases in financial 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.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

Three Months Ended September 30,

Change

2012

2011

Interest income:

Loans and leases

210,140

210,885

(745

)

(.4

)

Securities available for sale

5,607

22,561

(16,954

)

(75.1

)

Investments and other

4,105

1,997

2,108

105.6

Total interest income

219,852

235,443

(15,591

)

(6.6

)

Interest expense:

Deposits

10,757

11,883

(1,126

)

(9.5

)

Borrowings

8,536

47,496

(38,960

)

(82.0

)

Total interest expense

19,293

59,379

(40,086

)

(67.5

)

Net interest income

200,559

176,064

24,495

13.9

Provision for credit losses

96,275

52,315

43,960

84.0

Net interest income after provision for
credit losses

104,284

123,749

(19,465

)

(15.7

)

Non-interest income:

Fees and service charges

43,745

58,452

(14,707

)

(25.2

)

Card revenue

12,927

27,701

(14,774

)

(53.3

)

ATM revenue

6,122

7,523

(1,401

)

(18.6

)

Subtotal

62,794

93,676

(30,882

)

(33.0

)

Leasing and equipment finance

20,498

21,646

(1,148

)

(5.3

)

Gain on sales of auto loans

7,486

N.M

Gain on sale of consumer real estate loans

4,559

N.M

Other

3,688

786

2,902

N.M

Fees and other revenue

99,025

116,108

(17,083

)

(14.7

)

Gains on securities, net

13,033

1,648

11,385

N.M

Total non-interest income

112,058

117,756

(5,698

)

(4.8

)

Non-interest expense:

Compensation and employee benefits

98,409

87,758

10,651

12.1

Occupancy and equipment

33,006

31,129

1,877

6.0

FDIC insurance

6,899

7,363

(464

)

(6.3

)

Advertising and marketing

4,248

1,145

3,103

N.M

Deposit account premiums

485

7,045

(6,560

)

(93.1

)

Operating lease depreciation

6,325

7,409

(1,084

)

(14.6

)

Other

36,173

34,708

1,465

4.2

Subtotal

185,545

176,557

8,988

5.1

Foreclosed real estate and repossessed assets, net

10,670

12,430

(1,760

)

(14.2

)

Other credit costs, net

593

(139

)

732

N.M

Total non-interest expense

196,808

188,848

7,960

4.2

Income before income tax expense

19,534

52,657

(33,123

)

(62.9

)

Income tax expense

6,304

19,159

(12,855

)

(67.1

)

Income after income tax expense

13,230

33,498

(20,268

)

(60.5

)

Income attributable to non-controlling interest

1,536

1,243

293

23.6

Preferred Stock Dividends

2,372

N.M

Net income available to common stockholders

9,322

32,255

(22,933

)

(71.1

)

Other comprehensive income:

Reclassification adjustment for securities gains
included in net income

(12,912

)

(1,915

)

(10,997

)

N.M

Unrealized holding gains arising during the
period on securities available for sale

16,283

116,958

(100,675

)

(86.1

)

Foreign currency hedge

(630

)

1,319

(1,949

)

(147.8

)

Foreign currency translation adjustment

640

(1,410

)

2,050

(145.4

)

Recognized postretirement prior service cost
and transition obligation

)

N.M

Income tax expense

(1,011

)

(42,643

)

41,632

97.6

Total other comprehensive income

2,364

72,310

(69,946

)

(96.7

)

Comprehensive income

11,686

104,565

(92,879

)

(88.8

)

Net income per common share:

Basic

.06

.20

(.14

)

(70.0

)

Diluted

.06

.20

(.14

)

(70.0

)

Dividends declared per common share

.05

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

Basic

159,533

157,419

2,114

1.3

Diluted

160,016

157,621

2,395

1.5

N.M. Not meaningful.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

Nine Months Ended September 30,

Change

2012

2011

Interest income:

Loans and leases

624,890

639,381

(14,491

)

(2.3

Securities available for sale

30,535

62,629

(32,094

)

(51.2

)

Investments and other

10,171

5,634

4,537

80.5

Total interest income

665,596

707,644

(42,048

)

(5.9

)

Interest expense:

Deposits

30,015

35,317

(5,302

)

(15.0

)

Borrowings

56,625

146,073

(89,448

)

(61.2

)

Total interest expense

86,640

181,390

(94,750

)

(52.2

)

Net interest income

578,956

526,254

52,702

10.0

Provision for credit losses

198,923

141,594

57,329

40.5

Net interest income after provision for credit losses

380,033

384,660

(4,627

)

(1.2

)

Non-interest income:

Fees and service charges

133,691

168,361

(34,670

)

(20.6

)

Card revenue

39,664

82,504

(42,840

)

(51.9

)

ATM revenue

18,597

21,319

(2,722

)

(12.8

)

Subtotal

191,952

272,184

(80,232

)

(29.5

)

Leasing and equipment finance

66,572

70,675

(4,103

)

(5.8

)

Gain on sale of auto loans

15,232

N.M

Gain on sale of consumer real estate loans

4,559

N.M

Other

9,211

1,864

7,347

N.M

Fees and other revenue

287,526

344,723

(57,197

)

(16.6

)

Gains on securities, net

102,760

1,421

101,339

N.M

Total non-interest income

390,286

346,144

44,142

12.8

Non-interest expense:

Compensation and employee benefits

292,163

266,197

25,966

9.8

Occupancy and equipment

97,983

94,071

3,912

4.2

FDIC insurance

21,754

22,100

(346

)

(1.6

)

Advertising and marketing

12,269

7,784

4,485

57.6

Deposit account premiums

8,146

16,409

(8,263

)

(50.4

)

Operating lease depreciation

19,473

23,196

(3,723

)

(16.1

)

Other

110,425

106,341

4,084

3.8

Subtotal

562,213

536,098

26,115

4.9

Loss on termination of debt

550,735

N.M

Foreclosed real estate and repossessed assets, net

33,776

37,915

(4,139

)

(10.9

)

Other credit costs, net

1,781

2,905

(1,124

)

(38.7

)

Total non-interest expense

1,148,505

576,918

571,587

99.1

(Loss) income before income tax expense

(378,186

)

153,886

(532,072

)

N.M

Income tax (benefit) expense

(143,398

)

57,017

(200,415

)

N.M

(Loss) income after income tax expense

(234,788

)

96,869

(331,657

)

N.M

Income attributable to non-controlling interest

4,881

3,918

963

24.6

Preferred Stock Dividends

2,372

N.M

Net (loss) income available to common stockholders

(242,041

)

92,951

(334,992

)

N.M

Other comprehensive (loss) income:

Reclassification adjustment for securities gains
included in net income

(89,879

)

(1,915

)

(87,964

)

N.M

Unrealized holding gains (losses) arising during the
period on securities available for sale

28,383

126,972

(98,589

)

(77.6

)

Foreign currency hedge

(766

)

719

(1,485

)

N.M

Foreign currency translation adjustment

701

(876

)

1,577

(180.0

)

Recognized postretirement prior service cost
and transition obligation

(20

)

(23

)

N.M

Income tax benefit (expense)

22,822

(46,101

)

68,923

(149.5

)

Total other comprehensive (loss) income

(38,759

)

78,802

(117,561

)

(149.2

)

Comprehensive (loss) income

(280,800

)

171,753

(452,553

)

N.M

Net (loss) income per common share:

Basic

(1.52

)

.61

(2.13

)

N.M

Diluted

(1.52

)

.60

(2.12

)

N.M

Dividends declared per common share

.15

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

Basic

159,052

153,007

6,045

4.0

Diluted

159,052

153,302

5,750

3.8

N.M. Not meaningful.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

At Sep. 30

At Dec. 31

Change

2012

2011

ASSETS

Cash and due from banks

922,127

1,389,704

(467,577

)

(33.6

Investments

126,487

157,780

(31,293

)

(19.8

)

Securities available for sale

559,671

2,324,038

(1,764,367

)

(75.9

)

Loans and leases held for sale

3,691

14,321

(10,630

)

(74.2

)

Loans and leases:

Consumer real estate

6,648,036

6,895,291

(247,255

)

(3.6

)

Commercial

3,511,234

3,449,492

61,742

1.8

Leasing and equipment finance

3,157,977

3,142,259

15,718

Inventory finance

1,466,269

624,700

841,569

134.7

Auto finance

407,091

3,628

403,463

N.M

Other loans and leases

27,610

34,885

(7,275

)

(20.9

)

Total loans and leases

15,218,217

14,150,255

1,067,962

7.5

Allowance for loan and lease losses

(264,841

)

(255,672

)

(9,169

)

(3.6

)

Net loans and leases

14,953,376

13,894,583

1,058,793

7.6

Premises and equipment, net

442,356

436,281

6,075

1.4

Goodwill

225,640

Other assets

645,045

537,041

108,004

20.1

Total assets

17,878,393

18,979,388

(1,100,995

)

(5.8

)

LIABILITIES AND EQUITY

Deposits:

Checking

4,707,179

4,629,749

77,430

1.7

Savings

6,127,889

5,855,263

272,626

4.7

Money market

812,442

651,377

161,065

24.7

Subtotal

11,647,510

11,136,389

511,121

4.6

Certificates of deposit

2,073,909

1,065,615

1,008,294

94.6

Total deposits

13,721,419

12,202,004

1,519,415

12.5

Short-term borrowings

115,529

6,416

109,113

N.M

Long-term borrowings

1,936,988

4,381,664

(2,444,676

)

(55.8

)

Total borrowings

2,052,517

4,388,080

(2,335,563

)

(53.2

)

Accrued expenses and other liabilities

339,788

510,677

(170,889

)

(33.5

)

Total liabilities

16,113,724

17,100,761

(987,037

)

(5.8

)

Equity:

Preferred stock, par value $.01 per share,
30,000,000 authorized; and 6,900 shares issued

166,721

N.M

Common stock, par value $.01 per share,
280,000,000 shares authorized; 163,281,955
and 160,366,380 shares issued

1,633

1,604

1.8

Additional paid-in capital

746,543

715,247

31,296

4.4

Retained earnings, subject to certain restrictions

861,895

1,127,823

(265,928

)

(23.6

)

Accumulated other comprehensive income

18,067

56,826

(38,759

)

(68.2

)

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

(43,395

)

(33,367

)

(10,028

)

(30.1

)

Total TCF Financial Corporation stockholders’ equity

1,751,464

1,868,133

(116,669

)

(6.2

)

Non-controlling interest in subsidiaries

13,205

10,494

2,711

25.8

Total equity

1,764,669

1,878,627

(113,958

)

(6.1

)

Total liabilities and equity

17,878,393

18,979,388

(1,100,995

)

(5.8

)

N.M. Not meaningful.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

Change from

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2012

2011

2012

2011

Delinquency Data - Principal Balances(1)

60 days or more:

Consumer real estate

First mortgage lien

80,153

86,714

88,092

87,358

78,241

(6,561

)

1,912

Junior lien

13,388

13,967

15,563

22,277

18,499

(579

)

(5,111

)

Total consumer real estate

93,541

100,681

103,655

109,635

96,740

(7,140

)

(3,199

)

Commercial

2,652

5,616

3,425

1,148

3,079

(2,964

)

(427

)

Leasing and equipment finance

1,554

1,492

4,919

3,512

2,840

(1,286

)

Inventory finance

206

185

160

306

(126

)

(226

)

Auto finance

305

243

305

Other

(12

)

(36

)

Subtotal

98,154

108,091

112,238

114,496

103,023

(9,937

)

(4,869

)

Acquired portfolios

1,069

1,483

2,198

3,140

1,870

(414

)

(801

)

Total delinquencies

99,223

109,574

114,436

117,636

104,893

(10,351

)

(5,670

)

Delinquency Data - % of Portfolio(1)

60 days or more:

Consumer real estate

First mortgage lien

1.93

1.89

1.68

bps

Junior lien

.59

.64

.74

1.04

.86

)

(27

)

Total consumer real estate

1.46

1.51

1.55

1.63

1.42

)

Commercial

.08

.17

.10

.03

.09

)

Leasing and equipment finance

.05

.17

.13

.11

)

Inventory finance

.01

.03

.04

)

Auto finance

.08

.02

Other

.09

.13

.20

.12

.18

)

Subtotal

.67

.74

.77

.85

.75

)

Acquired portfolios

.50

.58

.66

.84

.51

)

Total delinquencies

.67

.73

.77

.85

.75

)

(1) Excludes non-accrual loans and leases.

Change from

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2012

2011

2012

2011

Non-Accrual Loans and Leases

Non-accrual loans and leases:

Consumer real estate

First mortgage lien

197,649

122,406

125,895

129,114

130,671

75,243

66,978

Junior lien

35,936

18,272

23,409

20,257

18,223

17,664

17,713

Total consumer real estate

233,585

140,678

149,304

149,371

148,894

92,907

84,691

Commercial

169,339

150,215

135,677

127,519

133,260

19,124

36,079

Leasing and equipment finance

15,812

29,429

20,015

20,583

24,437

(13,617

)

(8,625

)

Inventory finance

1,120

1,900

1,109

823

1,077

(780

)

Other

1,957

2,204

2,838

(247

)

1,953

Total non-accrual loans and leases

421,813

324,426

308,943

298,311

307,672

97,387

114,141

Non-accrual loans and leases - rollforward

Balance, beginning of period

324,426

308,943

298,311

307,672

321,661

15,483

2,765

Additions

210,916

111,739

85,670

125,893

80,014

99,177

130,902

Charge-offs

(49,116

)

(28,228

)

(19,683

)

(38,263

)

(29,338

)

(20,888

)

(19,778

)

Transfers to other assets

(24,632

)

(34,473

)

(25,603

)

(31,486

)

(21,654

)

9,841

(2,978

)

Return to accrual status

(30,300

)

(22,200

)

(21,243

)

(19,932

)

(20,272

)

(8,100

)

(10,028

)

Payments received

(9,652

)

(12,261

)

(9,202

)

(45,238

)

(23,843

)

2,609

14,191

Other, net

171

906

693

(335

)

1,104

(735

)

(933

)

Balance, end of period

421,813

324,426

308,943

298,311

307,672

97,387

114,141

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA, CONTINUED

(Dollars in thousands)

(Unaudited)

Change from

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Sep 30,

2012

2011

2012

2011

Other Real Estate Owned

Other real estate owned(1)

Consumer real estate

85,764

83,176

84,996

87,792

88,206

2,588

(2,442

)

Commercial real estate

34,662

42,700

42,232

47,106

42,208

(8,038

)

(7,546

)

Total other real estate owned

120,426

125,876

127,228

134,898

130,414

(5,450

)

(9,988

)

Other real estate owned - rollforward

Balance, beginning of period

125,876

127,228

134,898

130,414

136,499

(1,352

)

(10,623

)

Transferred in

26,097

33,739

25,624

33,864

24,939

(7,642

)

1,158

Sales

(28,479

)

(29,448

)

(28,601

)

(25,909

)

(26,095

)

969

(2,384

)

Writedowns

(3,493

)

(6,237

)

(5,267

)

(5,719

)

(6,337

)

2,744

2,844

Other, net

425

594

574

2,248

1,408

(169

)

(983

)

Balance, end of period

120,426

125,876

127,228

134,898

130,414

(5,450

)

(9,988

)

Ending number of properties owned

Consumer real estate

425

426

466

465

456

)

(31

)

Commercial real estate

)

Total

451

458

498

489

)

(38

)

(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 September 30, 2012

At June 30, 2012

At September 30, 2011

Change from

% of

Jun. 30,

Sep. 30,

Balance

Portfolio

Balance

Portfolio

Balance

Portfolio

2012

2011

Consumer real estate

178,942

2.69

188,087

2.58

177,430

2.55

bps

Commercial

53,756

1.53

50,699

1.44

49,499

1.42

Leasing and equipment finance

21,331

.68

25,450

.81

23,300

.77

(13

)

Inventory finance

7,003

.48

7,072

.49

2,877

.35

)

Auto finance

3,059

.75

1,951

.74

N.M

Other

750

2.72

902

3.10

1,219

3.68

(38

)

(96

)

Total

264,841

1.74

274,161

1.80

254,325

1.77

)

Net Charge-Offs

Quarter Ended

Change from
Quarter Ended

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2012

2011

2012

2011

Consumer real estate

First mortgage lien

40,469

18,369

19,526

23,081

27,590

22,100

12,879

Junior lien

34,202

16,487

16,162

14,219

16,247

17,715

17,955

Total consumer real estate

74,671

34,856

35,688

37,300

43,837

39,815

30,834

Commercial

20,547

8,455

1,524

15,577

5,040

12,092

15,507

Leasing and equipment finance

7,521

1,173

151

3,473

2,783

6,348

4,738

Inventory finance

444

225

643

262

219

182

Auto finance

280

199

280

Other

991

925

1,519

1,480

922

(489

)

Total

104,454

44,859

38,933

57,922

53,402

59,595

51,052

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

Quarter Ended(1)

Change from
Quarter Ended

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Sep. 30,

2012

2011

2012

2011

Consumer real estate

First mortgage lien

3.60

1.58

1.66

1.94

2.29

202

bps

131

bps

Junior lien

6.12

3.07

3.03

2.63

2.99

305

313

Total consumer real estate

4.44

2.05

2.09

2.15

2.51

239

193

Commercial

2.32

.97

.18

1.79

.57

135

175

Leasing and equipment finance

.95

.15

.02

.46

.36

Inventory finance

.12

.06

.22

.03

.13

)

Auto finance

.30

.14

.01

N.M

Other

N.M

Total

2.74

1.18

1.06

1.63

1.48

156

126

(1) Annualized.

N.M. Not Meaningful.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

Three Months Ended September 30,

2012

2011

Average
Balance

Interest

Yields and
Rates(1) (2)

Average
Balance

Interest

Yields and
Rates(1) (2)

ASSETS:

Investments and other

479,083

2,508

2.09

958,996

1,997

.83

U.S. Government sponsored entities:

Mortgage-backed securities, fixed-rate

710,835

5,605

3.15

2,339,862

22,556

3.86

U.S. Treasury securities

10,761

.04

Other securities

154

3.32

340

4.68

Total securities available for sale(3)

710,989

5,607

3.15

2,350,963

22,561

3.84

Loans and leases held for sale

80,549

1,597

7.89

Loans and leases:

Consumer real estate:

Fixed-rate

4,197,903

62,679

5.94

4,592,855

70,087

6.06

Variable-rate

2,531,351

32,071

5.04

2,392,966

30,845

5.11

Total consumer real estate

6,729,254

94,750

5.60

6,985,821

100,932

5.73

Commercial:

Fixed-and adjustable-rate

2,682,193

37,565

5.57

2,853,117

41,150

5.72

Variable-rate

855,918

8,116

3.77

711,081

7,759

4.33

Total commercial

3,538,111

45,681

5.14

3,564,198

48,909

5.44

Leasing and equipment finance

3,164,592

42,152

5.33

3,066,208

46,072

6.01

Inventory finance

1,440,298

22,395

6.19

826,198

15,151

7.28

Auto finance

367,271

5,515

5.97

Other

16,280

320

7.83

18,183

387

8.44

Total loans and leases

15,255,806

210,813

5.50

14,460,608

211,451

5.81

Total interest-earning assets

16,526,427

220,525

5.32

17,770,567

236,009

5.28

Other assets

1,190,094

1,222,700

Total assets

17,716,521

18,993,267

LIABILITIES AND EQUITY:

Non-interest bearing deposits:

Retail

1,275,722

1,396,857

Small business

746,511

704,272

Commercial and custodial

324,739

294,253

Total non-interest bearing deposits

2,346,972

2,395,382

Interest-bearing deposits:

Checking

2,255,561

698

.12

2,103,184

1,057

.20

Savings

6,153,079

4,720

.31

5,789,188

7,912

.54

Money market

848,899

816

.38

650,598

692

.42

Subtotal

9,257,539

6,234

.27

8,542,970

9,661

.45

Certificates of deposit

1,953,208

4,523

.92

1,114,934

2,222

.79

Total interest-bearing deposits

11,210,747

10,757

.38

9,657,904

11,883

.49

Total deposits

13,557,719

10,757

.32

12,053,286

11,883

.39

Borrowings:

Short-term borrowings

65,531

.49

43,073

.29

Long-term borrowings

1,985,094

8,455

1.70

4,403,724

47,465

4.28

Total borrowings

2,050,625

8,536

1.66

4,446,797

47,496

4.24

Total interest-bearing liabilities

13,261,372

19,293

.58

14,104,701

59,379

1.67

Total deposits and borrowings

15,608,344

19,293

.49

16,500,083

59,379

1.43

Other liabilities

343,336

672,944

Total liabilities

15,951,680

17,173,027

Total TCF Financial Corporation stockholders’ equity

1,749,951

1,813,384

Non-controlling interest in subsidiaries

14,890

6,856

Total equity

1,764,841

1,820,240

Total liabilities and equity

17,716,521

18,993,267

Net interest income and margin

201,232

4.85

176,630

3.96

(1)	Annualized.
(2)	Interest and yields are presented on a fully tax equivalent basis.
(3)	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 AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

Nine Months Ended September 30,

2012

2011

Average
Balance

Interest

Yields and
Rates(1) (2)

Average
Balance

Interest

Yields and
Rates(1) (2)

ASSETS:

Investments and other

551,653

7,550

1.83

744,934

5,634

1.01

U.S. Government sponsored entities:

Mortgage-backed securities, fixed-rate

1,175,514

30,529

3.46

2,136,516

62,581

3.91

U.S. Treasury securities

64,414

.07

Other securities

203

3.92

360

5.20

Total securities available for sale(3)

1,175,717

30,535

3.46

2,201,290

62,629

3.79

Loans and leases held for sale

43,871

2,621

7.98

Loans and leases:

Consumer real estate:

Fixed-rate

4,335,073

192,263

5.92

4,660,371

212,508

6.10

Variable-rate

2,453,953

92,341

5.03

2,379,947

91,691

5.15

Total consumer real estate

6,789,026

284,604

5.60

7,040,318

304,199

5.78

Commercial:

Fixed- and adjustable-rate

2,716,583

113,017

5.56

2,880,986

124,634

5.78

Variable-rate

779,531

23,179

3.97

713,898

23,173

4.34

Total commercial

3,496,114

136,196

5.20

3,594,884

147,807

5.50

Leasing and equipment finance

3,146,345

129,261

5.48

3,084,613

139,813

6.04

Inventory finance

1,392,828

64,811

6.22

889,709

47,816

7.19

Auto finance

226,092

10,933

6.46

Other

17,166

1,025

7.97

19,788

1,300

8.78

Total loans and leases

15,067,571

626,830

5.55

14,629,312

640,935

5.85

Total interest-earning assets

16,838,812

667,536

5.29

17,575,536

709,198

5.39

Other assets

1,256,931

1,176,606

Total assets

18,095,743

18,752,142

LIABILITIES AND EQUITY:

Non-interest bearing deposits:

Retail

1,317,448

1,443,033

Small business

726,732

685,435

Commercial and custodial

313,240

288,202

Total non-interest bearing deposits

2,357,420

2,416,670

Interest-bearing deposits:

Checking

2,258,843

2,482

.15

2,120,083

3,633

.23

Savings

6,022,751

15,323

.34

5,608,783

22,688

.54

Money market

753,486

2,144

.38

657,570

2,331

.47

Subtotal

9,035,080

19,949

.29

8,386,436

28,652

.46

Certificates of deposit

1,567,258

10,067

.86

1,100,029

6,665

.81

Total interest-bearing deposits

10,602,338

30,016

.38

9,486,465

35,317

.50

Total deposits

12,959,758

30,016

.31

11,903,135

35,317

.40

Borrowings:

Short-term borrowings

401,305

945

.31

53,619

144

.36

Long-term borrowings

2,593,917

55,679

2.86

4,538,823

145,929

4.30

Total borrowings

2,995,222

56,624

2.52

4,592,442

146,073

4.25

Total interest-bearing liabilities

13,597,560

86,640

.85

14,078,907

181,390

1.72

Total deposits and borrowings

15,954,980

86,640

.72

16,495,577

181,390

1.47

Other liabilities

411,114

558,119

Total liabilities

16,366,094

17,053,696

Total TCF Financial Corporation stockholders’ equity

1,714,238

1,689,695

Non-controlling interest in subsidiaries

15,411

8,751

Total equity

1,729,649

1,698,446

Total liabilities and equity

18,095,743

18,752,142

Net interest income and margin

580,896

4.61

527,808

4.01

(1)	Annualized.
(2)	Interest and yields are presented on a fully tax equivalent basis.
(3)	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 HIGHLIGHTS

(Dollars in thousands, except per-share data)

(Unaudited)

At or For the Three Months Ended

Sep. 30,
2012

Jun. 30,
2012

Mar. 31,
2012

Dec. 31,
2011

Sep. 30,
2011

Interest income:

Loans and leases

210,140

208,766

205,984

205,415

210,885

Securities available for sale

5,607

5,816

19,112

22,559

22,561

Investments and other

4,105

3,633

2,433

2,333

1,997

Total interest income

219,852

218,215

227,529

230,307

235,443

Interest expense:

Deposits

10,757

10,197

9,061

9,791

11,883

Borrowings

8,536

9,794

38,295

47,082

47,496

Total interest expense

19,293

19,991

47,356

56,873

59,379

Net interest income

200,559

198,224

180,173

173,434

176,064

Provision for credit losses

96,275

54,106

48,542

59,249

52,315

Net interest income after provision for credit losses

104,284

144,118

131,631

114,185

123,749

Non-interest income:

Fees and service charges

43,745

48,090

41,856

51,002

58,452

Card revenue

12,927

13,530

13,207

13,643

27,701

ATM revenue

6,122

6,276

6,199

6,608

7,523

Subtotal

62,794

67,896

61,262

71,253

93,676

Leasing and equipment finance

20,498

23,207

22,867

18,492

21,646

Gain on sale of auto loans

7,486

5,496

2,250

1,133

Gain on sale of consumer real estate loans

4,559

Other

3,688

3,168

2,355

1,570

786

Fees and other revenue

99,025

99,767

88,734

92,448

116,108

Gains on securities, net

13,033

13,116

76,611

5,842

1,648

Total non-interest income

112,058

112,883

165,345

98,290

117,756

Non-interest expense:

Compensation and employee benefits

98,409

97,787

95,967

82,595

87,758

Occupancy and equipment

33,006

32,731

32,246

32,366

31,129

FDIC insurance

6,899

8,469

6,386

6,647

7,363

Advertising and marketing

4,248

5,404

2,617

2,250

1,145

Deposit account premiums

485

1,690

5,971

6,482

7,045

Operating lease depreciation

6,325

6,417

6,731

6,811

7,409

Other

36,173

36,956

37,296

39,148

34,708

Subtotal

185,545

189,454

187,214

176,299

176,557

Loss on termination of debt

550,735

Foreclosed real estate and repossessed assets, net

10,670

12,059

11,047

11,323

12,430

Other credit costs, net

593

1,476

(288

)

(89

)

(139

)

Total non-interest expense

196,808

202,989

748,708

187,533

188,848

Income (loss) before income tax expense

19,534

54,012

(451,732

)

24,942

52,657

Income tax expense (benefit)

6,304

20,542

(170,244

)

7,424

19,159

Income (loss) after income tax expense

13,230

33,470

(281,488

)

17,518

33,498

Income attributable to non-controlling interest

1,536

1,939

1,406

1,075

1,243

Preferred stock dividends

2,372

Net income (loss) available to common stockholders

9,322

31,531

(282,894

)

16,443

32,255

Other comprehensive income (loss):

Reclassification adjustment for securities gains included in net income

(12,912

)

(76,967

)

(6,130

)

(1,915

)

Unrealized holding gains (losses) arising during the period on securities available for sale

16,283

19,868

(7,768

)

(4,334

)

116,958

Foreign currency hedge

(630

)

268

(404

)

(458

)

1,319

Foreign currency translation adjustment

640

(324

)

385

443

(1,410

)

Recognized postretirement prior service cost and transition obligation

)

305

Income tax (expense) benefit

(1,011

)

(7,375

)

31,208

3,890

(42,643

)

Total other comprehensive income (loss)

2,364

12,430

(53,553

)

(6,284

)

72,310

Comprehensive income (loss)

11,686

43,961

(336,447

)

10,159

104,565

Net income (loss) per common share:

Basic

.06

.20

(1.78

)

.10

.20

Diluted

.06

.20

(1.78

)

.10

.20

Dividends declared per common share

.05

Financial Highlights:

Pre-tax pre-provision profit(1)

115,809

108,118

70,578

84,191

104,972

Return on average assets(2)

.30

.76

(5.96

.37

.71

Return on average common equity(2)

2.36

8.13

(63.38

)

3.55

7.12

Net interest margin(2)

4.85

4.86

4.14

3.92

3.96

(1)	Pre-tax pre-provision profit (“PTPP”) is calculated as total revenues less non-interest expense. First quarter 2012 PTPP excludes the net loss of $473.8 million related to the balance sheet repositioning completed in the first quarter of 2012.
(2)	Annualized.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS

(In thousands)

(Unaudited)

Sep. 30,
2012

Jun. 30,
2012

Mar. 31,
2012

Dec. 31,
2011

Sep. 30,
2011

ASSETS

Cash and due from banks

628,697

555,590

863,310

1,175,118

1,078,521

Investments

123,223

149,813

168,805

162,359

162,717

U.S. Government sponsored entities:

Mortgage-backed securities

701,155

736,251

2,021,574

2,374,026

2,357,865

U.S. Treasury securities

10,761

Other securities

2,224

2,097

1,678

1,816

2,132

Total securities available for sale

703,379

738,348

2,023,252

2,375,842

2,370,758

Loans and leases held for sale

80,549

44,788

5,872

4,822

Loans and leases:

Consumer real estate:

Fixed-rate

4,197,903

4,365,670

4,443,148

4,528,165

4,592,855

Variable-rate

2,531,351

2,427,745

2,401,915

2,404,886

2,392,966

Total consumer real estate

6,729,254

6,793,415

6,845,063

6,933,051

6,985,821

Commercial:

Fixed- and adjustable-rate

2,682,193

2,730,085

2,737,848

2,775,219

2,853,117

Variable-rate

855,918

761,964

719,872

701,441

711,081

Total commercial

3,538,111

3,492,049

3,457,720

3,476,660

3,564,198

Leasing and equipment finance

3,164,592

3,145,914

3,128,329

3,043,329

3,066,208

Inventory finance

1,440,298

1,571,004

1,145,183

766,885

826,198

Auto finance

367,271

223,893

85,562

1,442

Other

16,280

17,647

17,582

17,944

18,183

Total loans and leases

15,255,806

15,243,922

14,679,439

14,239,311

14,460,608

Allowance for loan and lease losses

(264,626)

(266,187)

(257,895)

(251,158)

(253,547)

Net loans and leases

14,991,180

14,977,735

14,421,544

13,988,153

14,207,061

Premises and equipment, net

442,456

438,438

435,412

436,715

439,288

Goodwill

225,640

179,070

152,599

Other assets

521,397

524,466

753,873

598,367

582,290

Total assets

17,716,521

17,654,818

18,897,708

18,920,446

18,993,234

LIABILITIES AND EQUITY

Non-interest-bearing deposits:

Retail

1,275,722

1,316,767

1,359,781

1,330,462

1,396,857

Small business

746,511

725,052

708,416

738,867

704,272

Commercial and custodial

324,739

310,321

305,064

303,216

294,253

Total non-interest bearing deposits

2,346,972

2,352,140

2,373,261

2,372,545

2,395,382

Interest-bearing deposits:

Checking

2,255,561

2,306,810

2,214,192

2,096,340

2,103,184

Savings

6,153,079

6,031,015

5,882,730

5,859,147

5,789,188

Money market

848,899

748,016

662,493

662,024

650,598

Subtotal

9,257,539

9,085,841

8,759,415

8,617,511

8,542,970

Certificates of deposit

1,953,208

1,608,653

1,135,673

1,112,735

1,114,934

Total interest-bearing deposits

11,210,747

10,694,494

9,895,088

9,730,246

9,657,904

Total deposits

13,557,719

13,046,634

12,268,349

12,102,791

12,053,286

Borrowings:

Short-term borrowings

65,531

705,888

436,171

37,081

43,073

Long-term borrowings

1,985,094

1,986,182

3,817,165

4,387,036

4,403,724

Total borrowings

2,050,625

2,692,070

4,253,336

4,424,117

4,446,797

Accrued expenses and other liabilities

343,336

335,113

577,142

538,148

672,944

Total liabilities

15,951,680

16,073,817

17,098,827

17,065,056

17,173,027

Equity:

Preferred stock

166,721

10,993

Common stock

1,631

1,625

1,617

1,602

1,598

Additional paid-in capital

742,598

738,089

727,596

711,914

705,366

Retained earnings, subject to certain restrictions

862,570

846,349

1,052,632

1,121,866

1,105,322

Accumulated other comprehensive income (loss)

19,321

11,601

46,029

48,618

34,073

Treasury stock at cost and other

(42,890)

(45,499)

(42,499)

(33,032)

(33,008)

Total TCF Financial Corporation stockholders equity

1,749,951

1,563,158

1,785,375

1,850,968

1,813,351

Non-controlling interest in subsidiaries

14,890

17,843

13,506

4,422

6,856

Total equity

1,764,841

1,581,001

1,798,881

1,855,390

1,820,207

Total liabilities and equity

17,716,521

17,654,818

18,897,708

18,920,446

18,993,234

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY YIELDS AND RATES(1) (2)

(Unaudited)

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

Investments and other	2.09	%	2.48	%	1.29	%	.84	%	.83	%
U.S. Government sponsored entities:
Mortgage-backed securities, fixed-rate	3.15		3.17		3.66		3.79		3.86
U.S. Treasury securities	-		-		-		-		.04
Other securities	3.32		4.14		5.24		3.36		4.68
Total securities available for sale(3)	3.15		3.17		3.66		3.79		3.84
Loans and leases held for sale	7.89		8.80		3.08		10.78		-
Loans and leases:
Consumer real estate:
Fixed-rate	5.94		5.84		5.99		6.04		6.06
Variable-rate	5.04		5.00		5.03		5.09		5.11
Total consumer real estate	5.60		5.54		5.65		5.71		5.73
Commercial:
Fixed- and adjustable-rate	5.57		5.49		5.61		5.68		5.72
Variable-rate	3.77		3.99		4.20		4.28		4.33
Total commercial	5.14		5.16		5.32		5.40		5.44
Leasing and equipment finance	5.33		5.48		5.63		5.88		6.01
Inventory finance	6.19		6.07		6.58		7.12		7.28
Auto finance	5.97		6.89		7.44		3.30		-
Other	7.83		7.66		8.42		8.91		8.44
Total loans and leases	5.50		5.52		5.65		5.75		5.81

Total interest-earning assets	5.32		5.34		5.24		5.20		5.28

LIABILITIES

Interest-bearing deposits:
Checking	.12		.15		.16		.15		.20
Savings	.31		.34		.37		.42		.54
Money market	.38		.39		.37		.37		.42
Subtotal	.27		.30		.32		.35		.45
Certificates of deposit	.92		.86		.75		.75		.79
Total interest-bearing deposits	.38		.38		.37		.40		.49
Total deposits	.32		.31		.30		.32		.39
Borrowings:
Short-term borrowings	.49		.30		.30		.29		.29
Long-term borrowings	1.70		1.87		4.00		4.26		4.28
Total borrowings	1.66		1.46		3.62		4.23		4.24

Total interest-bearing liabilities	.58		.60		1.35		1.59		1.67

Net interest margin	4.85		4.86		4.14		3.92		3.96

(1)	Annualized.
(2)	Yields are presented on a fully tax equivalent basis.
(3)	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 Sep. 30, 2012			At Dec. 31, 2011
Computation of total equity to total assets:
Total equity	$	1,764,669		$	1,878,627
Total assets	17,878,393			18,979,388
Total equity to total assets	9.87		%	9.90		%

Computation of tangible realized common equity to tangible assets:
Total equity	$	1,764,669		$	1,878,627
Less: Non-controlling interest in subsidiaries	13,205			10,494
Total TCF Financial Corp. stockholders’ equity	1,751,464			1,868,133
Less:
Preferred stock	166,721			-
Goodwill	225,640			225,640
Other intangibles	9,092			7,134
Accumulated other comprehensive income	18,067			56,826
Tangible realized common equity	$	1,331,944		$	1,578,533

Total assets	$	17,878,393		$	18,979,388
Less:
Goodwill	225,640			225,640
Other intangibles	9,092			7,134
Tangible assets	$	17,643,661		$	18,746,614

Tangible realized common equity to tangible assets	7.55		%	8.42		%

	At Sep. 30,			At Dec. 31,
	2012			2011
Computation of tier 1 risk-based capital ratio:
Total tier 1 capital	$	1,515,050		$	1,706,926
Total risk-weighted assets	14,562,779			13,475,330
Total tier 1 risk-based capital ratio	10.40		%	12.67		%

Computation of tier 1 common capital ratio:
Total tier 1 capital	$	1,515,050		$	1,706,926
Less:
Preferred stock	166,721			-
Qualifying non-controlling interest in subsidiaries	13,205			10,494
Qualifying trust preferred securities	-			115,000
Total tier 1 common capital	$	1,335,124		$	1,581,432

Total tier 1 common capital ratio	9.17		%	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 preferred stock, 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 - October 26, 2012

Attached files

TCF FINANCIAL CORP Reports