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

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EX-99.2 - EXHIBIT 99.2 - TCF FINANCIAL CORP	a4q15earningspresentatio.htm
8-K - 8-K - TCF FINANCIAL CORP	tcf123115form8-kearningsre.htm

Exhibit 99.1

NEWS RELEASE

TCF Financial Corporation • 200 Lake Street East • Wayzata MN 55391

FOR IMMEDIATE RELEASE

Contact:

Mark Goldman (952) 475-7050 news@tcfbank.com (Media)

Jason Korstange (952) 745-2755 investor@tcfbank.com (Investors)

TCF REPORTS QUARTERLY NET INCOME OF $52.5 MILLION, OR 29 CENTS PER SHARE

AND ANNUAL NET INCOME OF $197.1 MILLION, OR $1.07 PER SHARE

2015 HIGHLIGHTS

- Loan and lease originations of $15.3 billion, up 13.1 percent from 2014

- Period-end loans and leases of $17.4 billion, up 6.3 percent from 2014

- Non-accrual loans and leases of $200.5 million, down 7.5 percent from 2014

- Average deposits of $15.9 billion, up 6.7 percent from 2014

- Revenue of $1.3 billion, up 1.1 percent from 2014

- Provision for credit losses of $52.9 million, down 44.7 percent from 2014

- Earnings per share of $1.07, up 13.8 percent from 2014

FOURTH QUARTER HIGHLIGHTS

- Loan and lease originations of $3.8 billion, up 11.2 percent from the fourth quarter of 2014

- Average deposits of $16.3 billion, up 6.4 percent from the fourth quarter of 2014

- Revenue of $321.3 million, up 2.4 percent from the fourth quarter of 2014

- Provision for credit losses of $17.6 million, down 68.3 percent from the fourth quarter of 2014

- Earnings per share of 29 cents, up 141.7 percent from the fourth quarter of 2014



Summary of Financial Results																				Table 1
										Percent Change
(Dollars in thousands, except per-share data)	4Q			3Q			4Q			4Q15 vs		4Q15 vs		YTD			YTD			Percent
	2015			2015			2014			3Q15		4Q14		2015			2014			Change
Net income attributable to TCF	$	52,492		$	52,575		$	23,988		(0.2	)%	118.8	%	$	197,123		$	174,187		13.2	%
Net interest income	205,669			205,270			204,074			0.2		0.8		820,388			815,629			0.6
Diluted earnings per common share	0.29			0.29			0.12			—		141.7		1.07			0.94			13.8

Financial Ratios⁽¹⁾
Pre-tax pre-provision return on average assets⁽²⁾	1.95		%	1.92		%	1.91		%					1.85		%	2.00		%
Return on average assets	1.08			1.10			0.53							1.03			0.96
Return on average common equity	9.53			9.76			4.15							9.19			8.71
Return on average tangible common equity⁽³⁾	10.82			11.12			4.80							10.48			10.08
Net interest margin	4.35			4.40			4.49							4.42			4.61
Net charge-offs as a percentage of average loans and leases	0.29			0.23			0.40							0.30			0.49

(1) Annualized.
(2) Pre-tax pre-provision profit is calculated as total revenues less non-interest expense.
(3) See "Reconciliation of GAAP to Non-GAAP Financial Measures" table.

WAYZATA, Minn. (January 28, 2016) - TCF Financial Corporation ("TCF" or the "Company") (NYSE: TCB) today reported net income of $52.5 million for the fourth quarter of 2015, compared with net income of $24.0 million for the fourth quarter of 2014, and net income of $52.6 million for the third quarter of 2015. Diluted earnings per common share was 29 cents for the fourth quarter of 2015, compared with 12 cents for the fourth quarter of 2014, and 29 cents for the third quarter of 2015.

TCF reported net income of $197.1 million for the year ended December 31, 2015, compared with net income of $174.2 million for the same period in 2014. Diluted earnings per common share was $1.07 for the year ended December 31, 2015, compared with 94 cents for the same period in 2014.

"TCF experienced another successful year in 2015 as earnings per share increased 13.8 percent while return on average tangible common equity improved by 40 basis points," said Craig R. Dahl, chief executive officer. "Meanwhile, loan and lease originations increased 13.1 percent during the year which led to additional revenue growth and diversification. Fourth quarter results were highlighted by continued progress toward improving operating leverage and continued strong performance on credit results.

"As I begin my new role, I look forward to building on TCF's historical track record of delivering sustained growth and returns for our shareholders by executing against our four strategic pillars: diversification, profitable growth, operating leverage and core funding. As we entered the new year, we implemented several leadership changes that align the expertise of our senior management team with these core priorities. I am confident we have a strong team in place to execute our strategy and build on TCF's long history of delivering business results. With a well-positioned balance sheet and business model for rising interest rates, and continued strong credit performance, we are poised to drive shareholder value in 2016 and beyond."



Revenue

Total Revenue																				Table 2
										Percent Change
(Dollars in thousands)	4Q			3Q			4Q			4Q15 vs		4Q15 vs		YTD			YTD				Percent
	2015			2015			2014			3Q15		4Q14		2015			2014				Change
Net interest income	$	205,669		$	205,270		$	204,074		0.2	%	0.8	%	$	820,388		$	815,629			0.6	%
Non-interest income:
Fees and service charges	37,741			36,991			39,477			2.0		(4.4	)	144,999			154,386				(6.1	)
Card revenue	13,781			13,803			12,830			(0.2	)	7.4		54,387			51,323				6.0
ATM revenue	5,143			5,739			5,249			(10.4	)	(2.0	)	21,544			22,225				(3.1	)
Subtotal	56,665			56,533			57,556			0.2		(1.5	)	220,930			227,934				(3.1	)
Gains on sales of auto loans, net	3,136			10,423			12,962			(69.9	)	(75.8	)	30,580			43,565				(29.8	)
Gains on sales of consumer real estate loans, net	13,104			7,143			6,175			83.5		112.2		40,964			34,794				17.7
Servicing fee income	8,622			8,049			6,365			7.1		35.5		31,229			21,444				45.6
Subtotal	24,862			25,615			25,502			(2.9	)	(2.5	)	102,773			99,803				3.0
Leasing and equipment finance	32,355			27,165			24,367			19.1		32.8		108,129			93,799				15.3
Other	1,806			3,070			2,363			(41.2	)	(23.6	)	10,463			10,704				(2.3	)
Fees and other revenue	115,688			112,383			109,788			2.9		5.4		442,295			432,240				2.3
Gains (losses) on securities, net	(29		)	(131		)	(20		)	77.9		(45.0	)	(297		)	1,027				N.M.
Total non-interest income	115,659			112,252			109,768			3.0		5.4		441,998			433,267				2.0
Total revenue	$	321,328		$	317,522		$	313,842		1.2		2.4		$	1,262,386		$	1,248,896			1.1

Net interest margin⁽¹⁾	4.35		%	4.40		%	4.49		%					4.42		%	4.61		%
Total non-interest income as a percentage of total revenue	36.0			35.4			35.0							35.0			34.7

N.M. Not Meaningful.
(1) Annualized.

Net Interest Income

•

Net interest income for the fourth quarter of 2015 increased $1.6 million, or 0.8 percent, compared with the fourth quarter of 2014 and increased $0.4 million, or 0.2 percent, compared with the third quarter of 2015. The increases from both periods were primarily due to higher average loan and lease balances in the auto finance, inventory finance and leasing and equipment finance portfolios, partially offset by the run-off of consumer real estate first mortgage lien balances and overall net margin compression.

•

Net interest margin for the fourth quarter of 2015 was 4.35 percent, compared with 4.49 percent for the fourth quarter of 2014 and 4.40 percent for the third quarter of 2015. The decreases from both periods were primarily due to margin compression resulting from the impact of the competitive low interest rate environment on the asset composition and higher rates on total deposits, driven primarily by certificates of deposits, acquired at market rates to fund asset growth.

Non-interest Income


•	Fees and service charges in the fourth quarter of 2015 were $37.7 million, down $1.7 million, or 4.4 percent, from the fourth quarter of 2014 and consistent with the third quarter of 2015. The decrease from the fourth quarter of 2014 was primarily due to consumer behavior changes, as well as higher average checking account balances per customer.


•	TCF sold $271.1 million, $367.0 million and $436.6 million of auto loans during the fourth quarters of 2015 and 2014, and the third quarter of 2015, respectively, resulting in net gains in each respective period. TCF executed another auto loan securitization in the four quarter of 2015.

•

TCF sold $389.1 million, $613.7 million and $246.0 million of consumer real estate loans during the fourth quarters of 2015 and 2014, and the third quarter of 2015, respectively, resulting in net gains in each respective period. TCF has two consumer real estate loan sale programs; one that sells nationally originated junior lien loans and the other that originates first mortgage lien loans in our primary banking markets and sells the loans through a correspondent relationship. Included in consumer real estate loans sold (servicing released) for the fourth quarter of 2014 is $405.9 million related to the portfolio sale of consumer real estate loans, primarily troubled debt restructuring ("TDR") loans, the proceeds of which were reinvested in our core businesses in 2015.

•

Servicing fee income was $8.6 million on $4.2 billion of average loans and leases serviced for others during the fourth quarter of 2015 compared with $6.4 million on $3.3 billion for the fourth quarter of 2014 and $8.0 million on $4.0 billion for the third quarter of 2015. The increases from both periods were primarily due to the cumulative effect of an increase in the portfolio of auto and consumer real estate loans sold with servicing retained by TCF.



Loans and Leases

Period-End and Average Loans and Leases															Table 3
							Percent Change
(Dollars in thousands)	4Q		3Q		4Q		4Q15 vs		4Q15 vs		YTD		YTD		Percent
	2015		2015		2014		3Q15		4Q14		2015		2014		Change
Period-End:
Consumer real estate:
First mortgage lien	$	2,624,956	$	2,724,594	$	3,139,152	(3.7	)%	(16.4	)%
Junior lien	2,839,316		2,889,120		2,543,212		(1.7	)	11.6
Total consumer real estate	5,464,272		5,613,714		5,682,364		(2.7	)	(3.8	)
Commercial	3,145,832		3,112,325		3,157,665		1.1		(0.4	)
Leasing and equipment finance	4,012,248		3,873,581		3,745,322		3.6		7.1
Inventory finance	2,146,754		2,153,385		1,877,090		(0.3	)	14.4
Auto finance	2,647,596		2,427,367		1,915,061		9.1		38.3
Other	19,297		20,674		24,144		(6.7	)	(20.1	)
Total	$	17,435,999	$	17,201,046	$	16,401,646	1.4		6.3

Average:
Consumer real estate:
First mortgage lien	$	2,670,355	$	2,793,129	$	3,447,447	(4.4	)%	(22.5	)%	$	2,867,948	$	3,567,088	(19.6	)%
Junior lien	2,934,169		2,813,253		2,611,709		4.3		12.3		2,754,253		2,581,464		6.7
Total consumer real estate	5,604,524		5,606,382		6,059,156		—		(7.5	)	5,622,201		6,148,552		(8.6	)
Commercial	3,117,983		3,118,024		3,143,614		—		(0.8	)	3,134,428		3,135,367		—
Leasing and equipment finance	3,911,025		3,821,590		3,611,557		2.3		8.3		3,804,015		3,531,256		7.7
Inventory finance	2,180,534		2,036,054		1,891,504		7.1		15.3		2,154,357		1,888,080		14.1
Auto finance	2,514,923		2,361,057		1,817,024		6.5		38.4		2,278,617		1,567,904		45.3
Other	9,060		9,833		11,396		(7.9	)	(20.5	)	10,303		12,071		(14.6	)
Total	$	17,338,049	$	16,952,940	$	16,534,251	2.3		4.9		$	17,003,921	$	16,283,230	4.4

•

Period-end loans and leases were $17.4 billion at December 31, 2015, an increase of $1.0 billion, or 6.3 percent, compared with December 31, 2014 and an increase of $0.2 billion, or 1.4 percent, compared with September 30, 2015. Average loans and leases were $17.3 billion for the fourth quarter of 2015, an increase of $0.8 billion, or 4.9 percent, compared with the fourth quarter of 2014 and an increase of $0.4 billion, or 2.3 percent, compared with the third quarter of 2015.

The increases from both periods for period-end loans and leases and for average loans and leases were primarily due to the continued growth of the auto finance portfolio as TCF expands the number of active dealers in its network, partially offset by run-off in the consumer real estate first mortgage lien portfolio. The increases from the fourth quarter of 2014 for period-end loans and leases and from both periods for average loans and leases were also due to increases in the inventory finance and the leasing and equipment finance portfolios. The increase from the third quarter of 2015 for period-end loans and leases was also due to an increase in the leasing and equipment finance portfolio due to strong fourth quarter originations.

•

Loan and lease originations were $3.8 billion for the fourth quarter of 2015, an increase of $0.4 billion, or 11.2 percent, compared with the fourth quarter of 2014 and a decrease of $0.1 billion, or 1.3 percent, compared with the third quarter of 2015. The increase in originations from the fourth quarter of 2014 was primarily due to an increase in commercial originations and continued growth in auto finance. The decrease in originations from the third quarter of 2015 was primarily due to seasonality of inventory finance originations and a decrease in consumer real estate originations, partially offset by an increase in commercial and leasing and equipment finance originations.



Credit Quality

Credit Trends																	Table 4
																Change
(Dollars in thousands)	4Q			3Q			2Q			1Q			4Q			4Q15 vs	4Q15 vs
	2015			2015			2015			2015			2014			3Q15	4Q14
Over 60-day delinquencies as a percentage of portfolio⁽¹⁾	0.11		%	0.17		%	0.10		%	0.14		%	0.14		%	(6) bps	(3) bps
Net charge-offs as a percentage of portfolio⁽²⁾	0.29			0.23			0.41			0.28			0.40			6	(11	)
Non-accrual loans and leases and other real estate owned	$	250,448		$	264,694		$	263,717		$	284,541		$	282,384		(5.4)%	(11.3)%
Provision for credit losses	17,607			10,018			12,528			12,791			55,597			75.8	(68.3	)

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

•

The over 60-day delinquency rate, excluding acquired portfolios and non-accrual loans and leases, was 0.11 percent at December 31, 2015, down from 0.14 percent at December 31, 2014, and down from 0.17 percent at September 30, 2015. The decrease from December 31, 2014 was primarily a result of the stabilization of the consumer real estate portfolio as economic conditions improved in our markets. The decrease from September 30, 2015 was primarily driven by delinquencies in the commercial and leasing and equipment finance portfolios at September 30, 2015 that have been brought current.

•

The net charge-off rate was 0.29 percent for the fourth quarter of 2015, down from 0.40 percent for the fourth quarter of 2014, and up from 0.23 percent for the third quarter of 2015. The decrease from the fourth quarter of 2014 was primarily due to improved credit quality in the consumer real estate and commercial portfolios. The increase from the third quarter of 2015 was due to increased net charge-offs of loans in the auto finance portfolio as a result of seasonality, increased net charge-offs in the leasing and equipment finance portfolio and net recoveries in the commercial portfolio during the third quarter of 2015.

•

Non-accrual loans and leases and other real estate owned was $250.4 million at December 31, 2015, a decrease of $31.9 million, or 11.3 percent, from December 31, 2014, and a decrease of $14.2 million, or 5.4 percent, from September 30, 2015. The decreases from both periods were primarily due to the improving credit quality trends and continued efforts to actively work out problem loans in the commercial portfolio.

•

Provision for credit losses was $17.6 million for the fourth quarter of 2015, a decrease of $38.0 million, or 68.3 percent, from the fourth quarter of 2014, and an increase of $7.6 million, or 75.8 percent, from the third quarter of 2015. The decrease from the fourth quarter of 2014 was primarily due to provision expense recorded in the fourth quarter of 2014 related to the TDR loan sale in that period. The increase from the third quarter of 2015 was due to increased reserve requirements related to asset growth and increased net charge-offs of loans in the auto finance portfolio driven by seasonality.



Deposits

Average Deposits																				Table 5
										Percent Change
(Dollars in thousands)	4Q			3Q			4Q			4Q15 vs		4Q15 vs		YTD			YTD			Percent
	2015			2015			2014			3Q15		4Q14		2015			2014			Change

Checking	$	5,412,454		$	5,405,442		$	5,109,465		0.1	%	5.9	%	$	5,387,112		$	5,075,759		6.1	%
Savings	4,733,703			4,872,853			5,289,435			(2.9	)	(10.5	)	4,952,680			5,713,389			(13.3	)
Money market	2,349,127			2,297,893			1,869,350			2.2		25.7		2,265,121			1,312,483			72.6
Certificates of deposit	3,793,653			3,400,282			3,041,722			11.6		24.7		3,340,341			2,840,922			17.6
Total average deposits	$	16,288,937		$	15,976,470		$	15,309,972		2.0		6.4		$	15,945,254		$	14,942,553		6.7

Average interest rate on deposits⁽¹⁾	0.34		%	0.31		%	0.28		%					0.30		%	0.26		%

(1) Annualized.


•	Total average deposits for the fourth quarter of 2015 increased $1.0 billion, or 6.4 percent, from the fourth quarter of 2014 and increased $0.3 billion, or 2.0 percent, from the third quarter of 2015. The increases from both periods were primarily due to special campaigns for certificates of deposit and money market accounts.


•	The average interest rate on deposits for the fourth quarter of 2015 was 0.34 percent, up 6 basis points from the fourth quarter of 2014 and up 3 basis points from the third quarter of 2015. The increases from both periods were primarily due to increased average interest rates resulting from promotions for certificates of deposit.



Non-interest Expense

Non-interest Expense																Table 6
								Percent Change
(Dollars in thousands)	4Q		3Q			4Q		4Q15 vs		4Q15 vs		YTD		YTD		Percent
	2015		2015			2014		3Q15		4Q14		2015		2014		Change

Compensation and employee benefits	$	109,061	$	116,708		$	115,796	(6.6	)%	(5.8	)%	$	457,743	$	452,942	1.1	%
Occupancy and equipment	37,824		34,159			35,747		10.7		5.8		144,962		139,023		4.3
FDIC insurance	5,173		4,832			2,643		7.1		95.7		20,262		25,123		(19.3	)
Advertising and marketing	5,316		5,793			5,146		(8.2	)	3.3		22,782		22,943		(0.7	)
Other	46,441		45,750			48,063		1.5		(3.4	)	186,211		179,904		3.5
Subtotal	203,815		207,242			207,395		(1.7	)	(1.7	)	831,960		819,935		1.5
Operating lease depreciation	13,608		9,485			6,878		43.5		97.8		39,409		27,152		45.1
Foreclosed real estate and repossessed assets, net	4,940		5,680			7,441		(13.0	)	(33.6	)	23,193		24,567		(5.6	)
Other credit costs, net	224		(123		)	44		N.M.		N.M.		185		123		50.4
Total non-interest expense	$	222,587	$	222,284		$	221,758	0.1		0.4		$	894,747	$	871,777	2.6

N.M. Not Meaningful.


•	Compensation and employee benefits expense decreased $6.7 million, or 5.8 percent, from the fourth quarter of 2014 and decreased $7.6 million, or 6.6 percent, from the third quarter of 2015. The decreases from both periods were primarily due to non-recurring items, including the annual pension plan valuation adjustment resulting from an increase to the discount rate.


•	FDIC insurance expense increased $2.5 million, or 95.7 percent, from the fourth quarter of 2014 and remained consistent with the third quarter of 2015. The increase from the fourth quarter of 2014 was primarily due to a non-recurring assessment rate catch-up in the fourth quarter of 2014.

•

Foreclosed real estate and repossessed assets, net expense decreased $2.5 million, or 33.6 percent, from the fourth quarter of 2014 and decreased $0.7 million, or 13.0 percent from the third quarter of 2015. The decreases from both periods were due to a reduction in write-downs of existing foreclosed commercial and consumer real estate properties. The other real estate owned balance was $50.0 million at December 31, 2015, the lowest level since the first quarter of 2008.



Capital

Capital Information				Table 7

(Dollars in thousands, except per-share data)	4Q 2015			4Q 2014
Total equity	$	2,306,917		$	2,135,364
Book value per common share	11.94			11.10
Tangible book value per common share⁽¹⁾	10.59			9.72
Tangible common equity to tangible assets⁽¹⁾	8.79		%	8.50		%
Capital accumulation rate⁽²⁾	10.44			10.36

	4Q 2015⁽³⁾			4Q 2014
Regulatory Capital:	Under Basel III			Under Basel I
Common equity Tier 1 capital	$	1,814,442		N.A.
Tier 1 capital	2,092,195			$	1,919,887
Total capital	2,487,060			2,209,999

Regulatory Capital Ratios:
Common equity Tier 1 capital ratio	10.00		%	N.A.
Tier 1 risk-based capital ratio	11.54			11.76		%
Total risk-based capital ratio	13.71			13.54
Tier 1 leverage ratio	10.46			10.07

N.A. Not Applicable.
(1) See "Reconciliation of GAAP to Non-GAAP Financial Measures" table.
(2) Calculated as the change in annualized year-to-date common equity Tier 1 capital as a percentage of prior year end common equity Tier 1 capital.
(3) The regulatory capital ratios for 4Q 2015 are preliminary pending completion and filing of the Company's regulatory reports.


•	TCF maintained strong capital ratios as the Company accumulates capital through earnings. The decrease in the Tier 1 risk-based capital ratio from the fourth quarter of 2014 was primarily the result of strong asset growth.

•

On January 22, 2016, TCF's Board of Directors declared a regular quarterly cash dividend of 7.5 cents per common share, payable on March 1, 2016, to stockholders of record at the close of business on February 12, 2016. TCF also declared dividends on the 7.50% Series A and 6.45% Series B Non-Cumulative Perpetual Preferred Stock, both payable on March 1, 2016, to stockholders of record at the close of business on February 12, 2016.

Webcast Information

A live webcast of TCF's conference call to discuss the fourth quarter earnings will be hosted at TCF's website, http://ir.tcfbank.com, on January 28, 2016 at 9:00 a.m. CST. A slide presentation for the call will be available on the website prior to the call. Additionally, the webcast will be available for replay on 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. As of December 31, 2015, TCF had $20.7 billion in total assets and 375 branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona, South Dakota and Indiana, providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing, equipment finance, and auto finance business in all 50 states and commercial inventory finance business in all 50 states and Canada. For more information about TCF, please visit http://ir.tcfbank.com.

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

Any statements contained in this earnings release regarding the outlook for the Company's businesses and their respective markets, such as projections of future performance, 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 herein. These factors include the factors discussed in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2014, 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; Competitive Conditions; Credit and Other Risks. Deterioration in general economic and banking industry conditions, including those arising from government shutdowns, defaults, anticipated defaults or rating agency downgrades of sovereign debt (including debt of the U.S.), or increases in unemployment; adverse economic, business and competitive developments such as shrinking interest margins, reduced demand for financial services and loan and lease products, deposit outflows, increased deposit costs due to competition for deposit growth and evolving payment system developments, deposit account attrition or an inability to increase the number of deposit accounts; customers completing financial transactions without using a bank; adverse changes in credit quality and other risks posed by TCF's loan, lease, investment, securities held to maturity and securities available for sale portfolios, including declines in commercial or residential real estate values, changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements, or the inability of home equity line borrowers to make increased payments caused by increased interest rates or amortization of principal; deviations from estimates of prepayment rates and fluctuations in interest rates that result in decreases in the value of assets such as interest-only strips that arise in connection with TCF's loan sales activity; 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; the effect of any negative publicity.

Legislative and Regulatory Requirements. New consumer protection and supervisory requirements and regulations, including those resulting from action by the Consumer Financial Protection Bureau and changes in the scope of Federal preemption of state laws that could be applied to national banks and their subsidiaries; the imposition of requirements that adversely impact TCF's deposit, lending, loan collection and other business activities such as mortgage foreclosure moratorium laws, further regulation of financial institution campus banking programs, use by municipalities of eminent domain on property securing troubled residential mortgage loans, or imposition of underwriting or other limitations that impact the ability to offer certain variable-rate products; changes affecting customer account charges and fee income, including changes to interchange rates; regulatory actions or changes in customer opt-in preferences with respect to overdrafts, which may have an adverse impact on TCF's fee revenue; 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; regulatory criticism and resulting enforcement actions or other adverse consequences such as increased capital requirements, higher deposit insurance assessments or monetary damages or penalties; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to enterprise risk management, 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 impact on banks of regulatory reform, including additional capital, leverage, liquidity and risk management requirements or changes in the composition of qualifying regulatory capital; 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 or 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 future retail deposit account changes, including limitations on TCF's ability to predict customer behavior and the impact on TCF's fee revenues.

Branching Risk; Growth Risks. Adverse developments affecting TCF's supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches; costs related to closing underperforming branches; 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 TCF's balance sheet through new or expanded programs or opportunities; failure to successfully attract and retain new customers, including the failure to attract and retain manufacturers and dealers to expand the inventory finance business; failure to effectuate, and risks of claims related to, sales and securitizations of loans; risks related to new 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, cyber-attacks and other security breaches, counterparty failures and the possibility that deposit account losses (fraudulent checks, etc.) may increase; failure to keep pace with technological change, including the failure to develop and maintain technology necessary to satisfy customer demands; ability to attract and retain employees given competitive conditions and the impact of consolidating facilities.

Litigation Risks. Results of litigation or government enforcement actions, including class action litigation or enforcement actions concerning TCF's lending or deposit activities, including account opening/origination, servicing practices, fees or charges, employment practices, or checking account overdraft program "opt in" requirements; and possible increases in indemnification obligations for certain litigation against Visa U.S.A.

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 federal, state or foreign 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.



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per-share data)
(Unaudited)

	Three Months Ended December 31,						Change
	2015			2014			$			%
Interest income:
Loans and leases	$	212,346		$	205,507		$	6,839		3.3	%
Securities available for sale	4,864			3,053			1,811			59.3
Securities held to maturity	1,336			1,429			(93		)	(6.5	)
Investments and other	6,905			9,819			(2,914		)	(29.7	)
Total interest income	225,451			219,808			5,643			2.6
Interest expense:
Deposits	13,772			10,760			3,012			28.0
Borrowings	6,010			4,974			1,036			20.8
Total interest expense	19,782			15,734			4,048			25.7
Net interest income	205,669			204,074			1,595			0.8
Provision for credit losses	17,607			55,597			(37,990		)	(68.3	)
Net interest income after provision for credit losses	188,062			148,477			39,585			26.7
Non-interest income:
Fees and service charges	37,741			39,477			(1,736		)	(4.4	)
Card revenue	13,781			12,830			951			7.4
ATM revenue	5,143			5,249			(106		)	(2.0	)
Subtotal	56,665			57,556			(891		)	(1.5	)
Gains on sales of auto loans, net	3,136			12,962			(9,826		)	(75.8	)
Gains on sales of consumer real estate loans, net	13,104			6,175			6,929			112.2
Servicing fee income	8,622			6,365			2,257			35.5
Subtotal	24,862			25,502			(640		)	(2.5	)
Leasing and equipment finance	32,355			24,367			7,988			32.8
Other	1,806			2,363			(557		)	(23.6	)
Fees and other revenue	115,688			109,788			5,900			5.4
Gains (losses) on securities, net	(29		)	(20		)	(9		)	(45.0	)
Total non-interest income	115,659			109,768			5,891			5.4
Non-interest expense:
Compensation and employee benefits	109,061			115,796			(6,735		)	(5.8	)
Occupancy and equipment	37,824			35,747			2,077			5.8
FDIC insurance	5,173			2,643			2,530			95.7
Advertising and marketing	5,316			5,146			170			3.3
Other	46,441			48,063			(1,622		)	(3.4	)
Subtotal	203,815			207,395			(3,580		)	(1.7	)
Operating lease depreciation	13,608			6,878			6,730			97.8
Foreclosed real estate and repossessed assets, net	4,940			7,441			(2,501		)	(33.6	)
Other credit costs, net	224			44			180			N.M.
Total non-interest expense	222,587			221,758			829			0.4
Income before income tax expense	81,134			36,487			44,647			122.4
Income tax expense	26,614			11,011			15,603			141.7
Income after income tax expense	54,520			25,476			29,044			114.0
Income attributable to non-controlling interest	2,028			1,488			540			36.3
Net income attributable to TCF Financial Corporation	52,492			23,988			28,504			118.8
Preferred stock dividends	4,847			4,847			—			—
Net income available to common stockholders	$	47,645		$	19,141		$	28,504		148.9

Net income per common share:
Basic	$	0.29		$	0.12		$	0.17		141.7	%
Diluted	0.29			0.12			0.17			141.7

Dividends declared per common share	$	0.075		$	0.05		$	0.025		50.0	%

Average common and common equivalent shares
outstanding (in thousands):
Basic	166,343			164,384			1,959			1.2	%
Diluted	166,942			164,869			2,073			1.3

N.M. Not Meaningful.



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per-share data)
(Unaudited)

	Year Ended December 31,					Change
	2015			2014		$			%
Interest income:
Loans and leases	$	832,736		$	820,436	$	12,300		1.5	%
Securities available for sale	15,648			11,994		3,654			30.5
Securities held to maturity	5,486			5,281		205			3.9
Investments and other	38,060			36,518		1,542			4.2
Total interest income	891,930			874,229		17,701			2.0
Interest expense:
Deposits	48,226			38,385		9,841			25.6
Borrowings	23,316			20,215		3,101			15.3
Total interest expense	71,542			58,600		12,942			22.1
Net interest income	820,388			815,629		4,759			0.6
Provision for credit losses	52,944			95,737		(42,793		)	(44.7	)
Net interest income after provision for credit losses	767,444			719,892		47,552			6.6
Non-interest income:
Fees and service charges	144,999			154,386		(9,387		)	(6.1	)
Card revenue	54,387			51,323		3,064			6.0
ATM revenue	21,544			22,225		(681		)	(3.1	)
Subtotal	220,930			227,934		(7,004		)	(3.1	)
Gains on sales of auto loans, net	30,580			43,565		(12,985		)	(29.8	)
Gains on sales of consumer real estate loans, net	40,964			34,794		6,170			17.7
Servicing fee income	31,229			21,444		9,785			45.6
Subtotal	102,773			99,803		2,970			3.0
Leasing and equipment finance	108,129			93,799		14,330			15.3
Other	10,463			10,704		(241		)	(2.3	)
Fees and other revenue	442,295			432,240		10,055			2.3
Gains (losses) on securities, net	(297		)	1,027		(1,324		)	N.M.
Total non-interest income	441,998			433,267		8,731			2.0
Non-interest expense:
Compensation and employee benefits	457,743			452,942		4,801			1.1
Occupancy and equipment	144,962			139,023		5,939			4.3
FDIC insurance	20,262			25,123		(4,861		)	(19.3	)
Advertising and marketing	22,782			22,943		(161		)	(0.7	)
Other	186,211			179,904		6,307			3.5
Subtotal	831,960			819,935		12,025			1.5
Operating lease depreciation	39,409			27,152		12,257			45.1
Foreclosed real estate and repossessed assets, net	23,193			24,567		(1,374		)	(5.6	)
Other credit costs, net	185			123		62			50.4
Total non-interest expense	894,747			871,777		22,970			2.6
Income before income tax expense	314,695			281,382		33,313			11.8
Income tax expense	108,872			99,766		9,106			9.1
Income after income tax expense	205,823			181,616		24,207			13.3
Income attributable to non-controlling interest	8,700			7,429		1,271			17.1
Net income attributable to TCF Financial Corporation	197,123			174,187		22,936			13.2
Preferred stock dividends	19,388			19,388		—			—
Net income available to common stockholders	$	177,735		$	154,799	$	22,936		14.8

Net income per common share:
Basic	$	1.07		$	0.95	$	0.12		12.6	%
Diluted	1.07			0.94		0.13			13.8

Dividends declared per common share	$	0.225		$	0.20	$	0.025		12.5	%

Average common and common equivalent shares
outstanding (in thousands):
Basic	165,697			163,581		2,116			1.3	%
Diluted	166,242			164,085		2,157			1.3

N.M. Not Meaningful.



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)
(Unaudited)

	Three Months Ended December 31,						Change
	2015			2014			$			%
Net income attributable to TCF Financial Corporation	$	52,492		$	23,988		$	28,504		118.8	%
Other comprehensive income (loss):
Securities available for sale:
Unrealized gains (losses) arising during the period	(5,494		)	9,419			(14,913		)	N.M.
Reclassification of net (gains) losses to net income	288			299			(11		)	(3.7	)
Net investment hedges:
Unrealized gains (losses) arising during the period	1,841			1,449			392			27.1
Foreign currency translation adjustment:
Unrealized gains (losses) arising during the period	(1,986		)	(1,661		)	(325		)	(19.6	)
Recognized postretirement prior service cost:
Reclassification of net (gains) losses to net income	(11		)	(12		)	1			8.3
Income tax (expense) benefit	1,283			(4,188		)	5,471			N.M.
Total other comprehensive income (loss)	(4,079		)	5,306			(9,385		)	N.M.
Comprehensive income	$	48,413		$	29,294		$	19,119		65.3


	Year Ended December 31,						Change
	2015			2014			$			%
Net income attributable to TCF Financial Corporation	$	197,123		$	174,187		$	22,936		13.2	%
Other comprehensive income (loss):
Securities available for sale:
Unrealized gains (losses) arising during the period	(2,523		)	29,071			(31,594		)	N.M.
Reclassification of net (gains) losses to net income	1,159			(76		)	1,235			N.M.
Net investment hedges:
Unrealized gains (losses) arising during the period	7,613			3,126			4,487			143.5
Foreign currency translation adjustment:
Unrealized gains (losses) arising during the period	(8,304		)	(3,704		)	(4,600		)	(124.2	)
Recognized postretirement prior service cost:
Reclassification of net (gains) losses to net income	(46		)	(47		)	1			2.1
Income tax (expense) benefit	(2,335		)	(12,067		)	9,732			80.6
Total other comprehensive income (loss)	(4,436		)	16,303			(20,739		)	N.M.
Comprehensive income	$	192,687		$	190,490		$	2,197		1.2

N.M. Not Meaningful.



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per-share data)
(Unaudited)

	At Dec. 31,						Change
	2015			2014			$			%
ASSETS:
Cash and due from banks	$	889,337		$	1,115,250		$	(225,913	)	(20.3	)%
Investments	70,537			85,492			(14,955		)	(17.5	)
Securities held to maturity	201,920			214,454			(12,534		)	(5.8	)
Securities available for sale	888,885			463,294			425,591			91.9
Loans and leases held for sale	157,625			132,266			25,359			19.2
Loans and leases:
Consumer real estate:
First mortgage lien	2,624,956			3,139,152			(514,196		)	(16.4	)
Junior lien	2,839,316			2,543,212			296,104			11.6
Total consumer real estate	5,464,272			5,682,364			(218,092		)	(3.8	)
Commercial	3,145,832			3,157,665			(11,833		)	(0.4	)
Leasing and equipment finance	4,012,248			3,745,322			266,926			7.1
Inventory finance	2,146,754			1,877,090			269,664			14.4
Auto finance	2,647,596			1,915,061			732,535			38.3
Other	19,297			24,144			(4,847		)	(20.1	)
Total loans and leases	17,435,999			16,401,646			1,034,353			6.3
Allowance for loan and lease losses	(156,054		)	(164,169		)	8,115			4.9
Net loans and leases	17,279,945			16,237,477			1,042,468			6.4
Premises and equipment, net	445,934			436,361			9,573			2.2
Goodwill	225,640			225,640			—			—
Other assets	531,881			484,377			47,504			9.8
Total assets	$	20,691,704		$	19,394,611		$	1,297,093		6.7

LIABILITIES AND EQUITY:
Deposits:
Checking	$	5,690,559		$	5,195,243		$	495,316		9.5
Savings	4,717,457			5,212,320			(494,863		)	(9.5	)
Money market	2,408,180			1,993,130			415,050			20.8
Certificates of deposit	3,903,793			3,049,189			854,604			28.0
Total deposits	16,719,989			15,449,882			1,270,107			8.2
Short-term borrowings	5,381			4,425			956			21.6
Long-term borrowings	1,036,652			1,232,065			(195,413		)	(15.9	)
Total borrowings	1,042,033			1,236,490			(194,457		)	(15.7	)
Accrued expenses and other liabilities	622,765			572,875			49,890			8.7
Total liabilities	18,384,787			17,259,247			1,125,540			6.5
Equity:
Preferred stock, par value $0.01 per share, 30,000,000 shares authorized;
4,006,900 shares issued	263,240			263,240			—			—
Common stock, par value $0.01 per share, 280,000,000 shares authorized;
169,887,030 and 167,503,568 shares issued, respectively	1,699			1,675			24			1.4
Additional paid-in capital	851,836			817,130			34,706			4.2
Retained earnings, subject to certain restrictions	1,240,347			1,099,914			140,433			12.8
Accumulated other comprehensive income (loss)	(15,346		)	(10,910		)	(4,436		)	(40.7	)
Treasury stock at cost, 42,566 shares, and other	(50,860		)	(49,400		)	(1,460		)	(3.0	)
Total TCF Financial Corporation stockholders' equity	2,290,916			2,121,649			169,267			8.0
Non-controlling interest in subsidiaries	16,001			13,715			2,286			16.7
Total equity	2,306,917			2,135,364			171,553			8.0
Total liabilities and equity	$	20,691,704		$	19,394,611		$	1,297,093		6.7



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
SUMMARY OF CREDIT QUALITY DATA
(Dollars in thousands)
(Unaudited)

Over 60-Day Delinquencies as a Percentage of Portfolio⁽¹⁾

	At		At		At		At		At		Change from
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,			Dec. 31,
	2015		2015		2015		2015		2014		2015			2014
Consumer real estate:
First mortgage lien	0.46	%	0.36	%	0.38	%	0.53	%	0.49	%	10		bps	(3	)	bps
Junior lien	0.05		0.08		0.08		0.11		0.08		(3	)		(3	)
Total consumer real estate	0.23		0.21		0.22		0.32		0.30		2			(7	)
Commercial	—		0.25		—		—		—		(25	)		—
Leasing and equipment finance	0.06		0.19		0.06		0.09		0.07		(13	)		(1	)
Inventory finance	0.01		0.01		—		—		—		—			1
Auto finance	0.14		0.11		0.11		0.16		0.22		3			(8	)
Other	0.13		0.17		0.11		0.02		—		(4	)		13
Subtotal	0.11		0.17		0.10		0.14		0.14		(6	)		(3	)
Acquired portfolios	0.41		0.37		0.28		0.21		0.03		4			38
Total delinquencies	0.11		0.17		0.10		0.14		0.14		(6	)		(3	)

(1) Excludes non-accrual loans and leases.



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

	Quarter Ended⁽¹⁾										Change from
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Dec. 31,
	2015		2015		2015		2015		2014		2015		2014
Consumer real estate:
First mortgage lien	0.54	%	0.53	%	0.79	%	0.62	%	0.80	%	1	bps	(26	)	bps
Junior lien	0.17		0.11		0.59		0.38		0.46		6		(29	)
Total consumer real estate	0.34		0.32		0.69		0.51		0.66		2		(32	)
Commercial	0.05		—		0.21		(0.07	)	0.12		5		(7	)
Leasing and equipment finance	0.16		0.09		0.16		0.10		0.08		7		8
Inventory finance	0.05		0.03		0.11		0.08		0.12		2		(7	)
Auto finance	0.75		0.62		0.66		0.66		0.83		13		(8	)
Other	N.M.		N.M.		N.M.		N.M.		N.M.		N.M.		N.M.
Total	0.29		0.23		0.41		0.28		0.40		6		(11	)

N.M. Not Meaningful.
(1) Annualized.



Non-Accrual Loans and Leases Rollforward

	Quarter Ended															Change from
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Dec. 31,
	2015			2015			2015			2015			2014			2015			2014
Balance, beginning of period	$	206,110		$	205,710		$	222,143		$	216,734		$	275,111		$	400		$	(69,001	)
Additions	44,387			48,505			40,846			51,647			44,626			(4,118		)	(239		)
Charge-offs	(9,002		)	(7,055		)	(14,050		)	(8,921		)	(14,456		)	(1,947		)	5,454
Transfers to other assets	(13,612		)	(16,400		)	(17,738		)	(16,781		)	(18,471		)	2,788			4,859
Return to accrual status	(9,282		)	(10,190		)	(10,298		)	(7,668		)	(8,280		)	908			(1,002		)
Payments received	(20,103		)	(14,721		)	(15,543		)	(10,974		)	(21,859		)	(5,382		)	1,756
Sales	(775		)	(705		)	(353		)	(2,250		)	(40,354		)	(70		)	39,579
Other, net	2,743			966			703			356			417			1,777			2,326
Balance, end of period	$	200,466		$	206,110		$	205,710		$	222,143		$	216,734		$	(5,644	)	$	(16,268	)



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
SUMMARY OF CREDIT QUALITY DATA, CONTINUED
(Dollars in thousands)
(Unaudited)

Other Real Estate Owned Rollforward

	Quarter Ended															Change from
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Dec. 31,
	2015			2015			2015			2015			2014			2015			2014
Balance, beginning of period	$	58,584		$	58,007		$	62,398		$	65,650		$	67,614		$	577		$	(9,030	)
Transferred in	12,626			15,087			15,359			15,513			18,220			(2,461		)	(5,594		)
Sales	(19,174		)	(13,442		)	(17,164		)	(15,399		)	(13,766		)	(5,732		)	(5,408		)
Writedowns	(2,130		)	(2,868		)	(4,003		)	(3,424		)	(5,753		)	738			3,623
Other, net	76			1,800			1,417			58			(665		)	(1,724		)	741
Balance, end of period	$	49,982		$	58,584		$	58,007		$	62,398		$	65,650		$	(8,602	)	$	(15,668	)



Allowance for Loan and Lease Losses

	At December 31,				At September 30,				At December 31,
	2015				2015				2014				Change from
			% of				% of				% of		Sep. 30,			Dec. 31,
	Balance		Portfolio		Balance		Portfolio		Balance		Portfolio		2015			2014
Consumer real estate	$	67,992	1.24	%	$	70,329	1.25	%	$	85,361	1.50	%	(1	)	bps	(26	)	bps
Commercial	30,185		0.96		30,006		0.96		31,367		0.99		—			(3	)
Leasing and equipment finance	19,018		0.47		18,177		0.47		18,446		0.49		—			(2	)
Inventory finance	11,128		0.52		11,121		0.52		10,020		0.53		—			(1	)
Auto finance	26,486		1.00		23,722		0.98		18,230		0.95		2			5
Other	1,245		6.45		607		2.94		745		3.09		351			336
Total	$	156,054	0.90		$	153,962	0.90		$	164,169	1.00		—			(10	)



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Dollars in thousands)
(Unaudited)

	Three Months Ended December 31,
	2015						2014
	Average				Yields and		Average				Yields and
	Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾		Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾
ASSETS:
Investments and other	$	405,252	$	2,644	2.59	%	$	611,286	$	3,551	2.31	%
Securities held to maturity	201,944		1,336		2.64		215,039		1,429		2.66
Securities available for sale⁽³⁾
Taxable	611,816		3,691		2.41		465,676		3,053		2.62
Tax-exempt⁽⁴⁾	221,113		1,804		3.26		—		—		—
Loans and leases held for sale	180,278		4,261		9.38		297,474		6,268		8.36
Loans and leases:⁽⁵⁾
Consumer real estate:
Fixed-rate	2,520,567		36,384		5.73		3,257,428		46,848		5.71
Variable-rate	3,083,957		40,294		5.18		2,801,728		36,302		5.14
Total consumer real estate	5,604,524		76,678		5.43		6,059,156		83,150		5.45
Commercial:
Fixed-rate	1,090,001		13,869		5.05		1,362,306		16,883		4.92
Variable- and adjustable-rate	2,027,982		20,705		4.05		1,781,308		17,334		3.86
Total commercial	3,117,983		34,574		4.40		3,143,614		34,217		4.32
Leasing and equipment finance	3,911,025		44,479		4.55		3,611,557		42,789		4.74
Inventory finance	2,180,534		31,128		5.66		1,891,504		26,515		5.56
Auto finance	2,514,923		26,422		4.17		1,817,024		19,437		4.24
Other	9,060		157		6.88		11,396		228		7.93
Total loans and leases	17,338,049		213,438		4.89		16,534,251		206,336		4.96
Total interest-earning assets	18,958,452		227,174		4.76		18,123,726		220,637		4.84
Other assets⁽⁶⁾	1,247,875						1,132,112
Total assets	$	20,206,327					$	19,255,838
LIABILITIES AND EQUITY:
Non-interest bearing deposits:
Retail	$	1,639,550					$	1,528,579
Small business	874,892						842,004
Commercial and custodial	525,692						455,086
Total non-interest bearing deposits	3,040,134						2,825,669
Interest-bearing deposits:
Checking	2,384,452		124		0.02		2,301,035		163		0.03
Savings	4,721,571		466		0.04		5,272,196		1,320		0.10
Money market	2,349,127		3,649		0.62		1,869,350		3,071		0.65
Certificates of deposit	3,793,653		9,533		1.00		3,041,722		6,206		0.81
Total interest-bearing deposits	13,248,803		13,772		0.41		12,484,303		10,760		0.34
Total deposits	16,288,937		13,772		0.34		15,309,972		10,760		0.28
Borrowings:
Short-term borrowings	28,364		6		0.09		9,383		13		0.56
Long-term borrowings	1,011,715		6,004		2.37		1,326,591		4,961		1.49
Total borrowings	1,040,079		6,010		2.31		1,335,974		4,974		1.49
Total interest-bearing liabilities	14,288,882		19,782		0.55		13,820,277		15,734		0.45
Total deposits and borrowings	17,329,016		19,782		0.45		16,645,946		15,734		0.38
Other liabilities	595,317						485,655
Total liabilities	17,924,333						17,131,601
Total TCF Financial Corp. stockholders' equity	2,263,018						2,109,402
Non-controlling interest in subsidiaries	18,976						14,835
Total equity	2,281,994						2,124,237
Total liabilities and equity	$	20,206,327					$	19,255,838
Net interest income and margin			$	207,392	4.35				$	204,903	4.49

(1) Interest and yields are presented on a fully tax-equivalent basis.
(2) Annualized.
(3) Average balances and yields of securities available for sale are based upon historical amortized cost and exclude equity securities.
(4) The yield on tax-exempt securities available for sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 35% for all periods presented.
(5) Average balances of loans and leases include non-accrual loans and leases and are presented net of unearned income.
(6) Includes operating leases.



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Dollars in thousands)
(Unaudited)

	Year Ended December 31,
	2015						2014
	Average				Yields and		Average				Yields and
	Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾		Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾
ASSETS:
Investments and other	$	520,577	$	12,294	2.36	%	$	586,803	$	15,390	2.62	%
Securities held to maturity	207,140		5,486		2.65		197,943		5,281		2.67
Securities available for sale⁽³⁾
Taxable	564,205		13,930		2.47		447,016		11,994		2.68
Tax-exempt⁽⁴⁾	80,894		2,643		3.27		—		—		—
Loans and leases held for sale	286,295		25,766		9.00		259,186		21,128		8.15
Loans and leases:⁽⁵⁾
Consumer real estate:
Fixed-rate	2,710,512		157,428		5.81		3,359,670		190,973		5.68
Variable-rate	2,911,689		149,770		5.14		2,788,882		143,431		5.14
Total consumer real estate	5,622,201		307,198		5.46		6,148,552		334,404		5.44
Commercial:
Fixed-rate	1,173,039		59,037		5.03		1,469,579		73,752		5.02
Variable- and adjustable-rate	1,961,389		76,677		3.91		1,665,788		66,450		3.99
Total commercial	3,134,428		135,714		4.33		3,135,367		140,202		4.47
Leasing and equipment finance	3,804,015		175,565		4.62		3,531,256		166,974		4.73
Inventory finance	2,154,357		122,799		5.70		1,888,080		112,603		5.96
Auto finance	2,278,617		94,463		4.15		1,567,904		68,595		4.37
Other	10,303		712		6.91		12,071		931		7.71
Total loans and leases	17,003,921		836,451		4.92		16,283,230		823,709		5.06
Total interest-earning assets	18,663,032		896,570		4.80		17,774,178		877,502		4.94
Other assets⁽⁶⁾	1,228,651						1,124,226
Total assets	$	19,891,683					$	18,898,404
LIABILITIES AND EQUITY:
Non-interest bearing deposits:
Retail	$	1,658,951					$	1,546,453
Small business	838,758						806,649
Commercial and custodial	507,446						413,893
Total non-interest bearing deposits	3,005,155						2,766,995
Interest-bearing deposits:
Checking	2,396,334		547		0.02		2,328,402		921		0.04
Savings	4,938,303		3,005		0.06		5,693,751		8,343		0.15
Money market	2,265,121		14,237		0.63		1,312,483		7,032		0.54
Certificates of deposit	3,340,341		30,437		0.91		2,840,922		22,089		0.78
Total interest-bearing deposits	12,940,099		48,226		0.37		12,175,558		38,385		0.32
Total deposits	15,945,254		48,226		0.30		14,942,553		38,385		0.26
Borrowings:
Short-term borrowings	18,822		53		0.28		83,673		261		0.31
Long-term borrowings	1,121,181		23,263		2.07		1,311,176		19,954		1.52
Total borrowings	1,140,003		23,316		2.05		1,394,849		20,215		1.45
Total interest-bearing liabilities	14,080,102		71,542		0.51		13,570,407		58,600		0.43
Total deposits and borrowings	17,085,257		71,542		0.42		16,337,402		58,600		0.36
Other liabilities	589,222						502,560
Total liabilities	17,674,479						16,839,962
Total TCF Financial Corp. stockholders' equity	2,197,690						2,041,428
Non-controlling interest in subsidiaries	19,514						17,014
Total equity	2,217,204						2,058,442
Total liabilities and equity	$	19,891,683					$	18,898,404
Net interest income and margin			$	825,028	4.42				$	818,902	4.61

(1) Interest and yields are presented on a fully tax-equivalent basis.
(2) Annualized.
(3) Average balances and yields of securities available for sale are based upon historical amortized cost and exclude equity securities.
(4) The yield on tax-exempt securities available for sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 35% for all periods presented.
(5) Average balances of loans and leases include non-accrual loans and leases and are presented net of unearned income.
(6) Includes operating leases.



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per-share data)
(Unaudited)

	Three Months Ended
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
	2015			2015			2015			2015			2014
Interest income:
Loans and leases	$	212,346		$	207,250		$	207,164		$	205,976		$	205,507
Securities available for sale	4,864			4,161			3,543			3,080			3,053
Securities held to maturity	1,336			1,361			1,384			1,405			1,429
Investments and other	6,905			10,832			10,990			9,333			9,819
Total interest income	225,451			223,604			223,081			219,794			219,808
Interest expense:
Deposits	13,772			12,302			11,080			11,072			10,760
Borrowings	6,010			6,032			5,972			5,302			4,974
Total interest expense	19,782			18,334			17,052			16,374			15,734
Net interest income	205,669			205,270			206,029			203,420			204,074
Provision for credit losses	17,607			10,018			12,528			12,791			55,597
Net interest income after provision for credit losses	188,062			195,252			193,501			190,629			148,477
Non-interest income:
Fees and service charges	37,741			36,991			36,295			33,972			39,477
Card revenue	13,781			13,803			13,902			12,901			12,830
ATM revenue	5,143			5,739			5,540			5,122			5,249
Subtotal	56,665			56,533			55,737			51,995			57,556
Gains on sales of auto loans, net	3,136			10,423			10,756			6,265			12,962
Gains on sales of consumer real estate loans, net	13,104			7,143			11,954			8,763			6,175
Servicing fee income	8,622			8,049			7,216			7,342			6,365
Subtotal	24,862			25,615			29,926			22,370			25,502
Leasing and equipment finance	32,355			27,165			26,385			22,224			24,367
Other	1,806			3,070			1,460			4,127			2,363
Fees and other revenue	115,688			112,383			113,508			100,716			109,788
Gains (losses) on securities, net	(29		)	(131		)	(59		)	(78		)	(20		)
Total non-interest income	115,659			112,252			113,449			100,638			109,768
Non-interest expense:
Compensation and employee benefits	109,061			116,708			116,159			115,815			115,796
Occupancy and equipment	37,824			34,159			36,152			36,827			35,747
FDIC insurance	5,173			4,832			4,864			5,393			2,643
Advertising and marketing	5,316			5,793			5,150			6,523			5,146
Other	46,441			45,750			45,887			48,133			48,063
Subtotal	203,815			207,242			208,212			212,691			207,395
Operating lease depreciation	13,608			9,485			8,582			7,734			6,878
Foreclosed real estate and repossessed assets, net	4,940			5,680			6,377			6,196			7,441
Other credit costs, net	224			(123		)	(62		)	146			44
Total non-interest expense	222,587			222,284			223,109			226,767			221,758
Income before income tax expense	81,134			85,220			83,841			64,500			36,487
Income tax expense	26,614			30,528			28,902			22,828			11,011
Income after income tax expense	54,520			54,692			54,939			41,672			25,476
Income attributable to non-controlling interest	2,028			2,117			2,684			1,871			1,488
Net income attributable to TCF Financial Corporation	52,492			52,575			52,255			39,801			23,988
Preferred stock dividends	4,847			4,847			4,847			4,847			4,847
Net income available to common stockholders	$	47,645		$	47,728		$	47,408		$	34,954		$	19,141

Net income per common share:
Basic	$	0.29		$	0.29		$	0.29		$	0.21		$	0.12
Diluted	0.29			0.29			0.29			0.21			0.12

Dividends declared per common share	$	0.075		$	0.05		$	0.05		$	0.05		$	0.05

Financial highlights:
Pre-tax pre-provision profit⁽¹⁾	$	98,741		$	95,238		$	96,369		$	77,291		$	92,084
Return on average assets⁽²⁾	1.08		%	1.10		%	1.10		%	0.85		%	0.53		%
Return on average common equity⁽²⁾	9.53			9.76			9.93			7.47			4.15
Net interest margin⁽²⁾	4.35			4.40			4.44			4.50			4.49

(1) Pre-tax pre-provision profit is calculated as total revenues less non-interest expense.
(2) Annualized.



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS
(In thousands)
(Unaudited)

	Dec. 31, 2015		Sep. 30, 2015		Jun. 30, 2015		Mar. 31, 2015		Dec. 31, 2014
ASSETS:
Investments and other	$	405,252	$	463,312	$	551,630	$	665,606	$	611,286
Securities held to maturity	201,944		205,264		209,834		211,646		215,039
Securities available for sale:⁽¹⁾
Taxable	611,816		601,889		566,499		474,697		465,676
Tax-exempt	221,113		92,484		7,420		—		—
Loans and leases held for sale	180,278		348,215		340,912		276,149		297,474
Loans and leases:⁽²⁾
Consumer real estate:
Fixed-rate	2,520,567		2,637,875		2,776,177		2,912,535		3,257,428
Variable-rate	3,083,957		2,968,507		2,811,510		2,778,805		2,801,728
Total consumer real estate	5,604,524		5,606,382		5,587,687		5,691,340		6,059,156
Commercial:
Fixed-rate	1,090,001		1,137,744		1,193,011		1,273,806		1,362,306
Variable- and adjustable-rate	2,027,982		1,980,280		1,955,261		1,880,202		1,781,308
Total commercial	3,117,983		3,118,024		3,148,272		3,154,008		3,143,614
Leasing and equipment finance	3,911,025		3,821,590		3,751,776		3,729,481		3,611,557
Inventory finance	2,180,534		2,036,054		2,292,481		2,108,871		1,891,504
Auto finance	2,514,923		2,361,057		2,211,014		2,021,144		1,817,024
Other	9,060		9,833		10,734		11,616		11,396
Total loans and leases	17,338,049		16,952,940		17,001,964		16,716,460		16,534,251
Total interest-earning assets	18,958,452		18,664,104		18,678,259		18,344,558		18,123,726
Other assets⁽³⁾	1,247,875		1,219,585		1,211,774		1,235,328		1,132,112
Total assets	$	20,206,327	$	19,883,689	$	19,890,033	$	19,579,886	$	19,255,838

LIABILITIES AND EQUITY:
Non-interest-bearing deposits:
Retail	$	1,639,550	$	1,649,995	$	1,699,668	$	1,646,769	$	1,528,579
Small business	874,892		852,211		822,683		804,323		842,004
Commercial and custodial	525,692		516,461		497,883		489,248		455,086
Total non-interest bearing deposits	3,040,134		3,018,667		3,020,234		2,940,340		2,825,669
Interest-bearing deposits:
Checking	2,384,452		2,399,119		2,422,909		2,378,761		2,301,035
Savings	4,721,571		4,860,509		5,033,329		5,143,295		5,272,196
Money market	2,349,127		2,297,893		2,261,567		2,149,340		1,869,350
Certificates of deposit	3,793,653		3,400,282		3,116,718		3,041,790		3,041,722
Total interest-bearing deposits	13,248,803		12,957,803		12,834,523		12,713,186		12,484,303
Total deposits	16,288,937		15,976,470		15,854,757		15,653,526		15,309,972
Borrowings:
Short-term borrowings	28,364		30,326		8,246		7,999		9,383
Long-term borrowings	1,011,715		1,060,092		1,236,465		1,178,962		1,326,591
Total borrowings	1,040,079		1,090,418		1,244,711		1,186,961		1,335,974
Total interest-bearing liabilities	14,288,882		14,048,221		14,079,234		13,900,147		13,820,277
Total deposits and borrowings	17,329,016		17,066,888		17,099,468		16,840,487		16,645,946
Other liabilities	595,317		578,718		594,352		588,541		485,655
Total liabilities	17,924,333		17,645,606		17,693,820		17,429,028		17,131,601
Total TCF Financial Corporation stockholders' equity	2,263,018		2,218,614		2,173,699		2,133,781		2,109,402
Non-controlling interest in subsidiaries	18,976		19,469		22,514		17,077		14,835
Total equity	2,281,994		2,238,083		2,196,213		2,150,858		2,124,237
Total liabilities and equity	$	20,206,327	$	19,883,689	$	19,890,033	$	19,579,886	$	19,255,838


(1)	Average balances of securities available for sale are based upon historical amortized cost and exclude equity securities.


(2)	Average balances of loans and leases include non-accrual loans and leases and are presented net of unearned income.


(3)	Includes operating leases.



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED QUARTERLY YIELDS AND RATES⁽¹⁾⁽²⁾
(Unaudited)

	Dec. 31, 2015		Sep. 30, 2015		Jun. 30, 2015		Mar. 31, 2015		Dec. 31, 2014
ASSETS:
Investments and other	2.59	%	2.52	%	2.34	%	2.13	%	2.31	%
Securities held to maturity	2.64		2.65		2.64		2.66		2.66
Securities available for sale:⁽³⁾
Taxable	2.41		2.43		2.47		2.60		2.62
Tax-exempt⁽⁴⁾	3.26		3.35		3.50		—		—
Loans and leases held for sale	9.38		9.00		9.15		8.57		8.36
Loans and leases:
Consumer real estate:
Fixed-rate	5.73		5.72		5.73		6.03		5.71
Variable-rate	5.18		5.12		5.13		5.14		5.14
Total consumer real estate	5.43		5.40		5.43		5.60		5.45
Commercial:
Fixed-rate	5.05		5.05		5.03		5.01		4.92
Variable- and adjustable-rate	4.05		3.80		3.85		3.94		3.86
Total commercial	4.40		4.26		4.30		4.37		4.32
Leasing and equipment finance	4.55		4.59		4.66		4.66		4.74
Inventory finance	5.66		5.83		5.61		5.71		5.56
Auto finance	4.17		4.13		4.11		4.18		4.24
Other	6.88		6.31		6.92		7.44		7.93
Total loans and leases	4.89		4.88		4.90		5.00		4.96

Total interest-earning assets	4.76		4.79		4.81		4.86		4.84

LIABILITIES:
Interest-bearing deposits:
Checking	0.02		0.02		0.02		0.03		0.03
Savings	0.04		0.05		0.06		0.09		0.10
Money market	0.62		0.62		0.61		0.67		0.65
Certificates of deposit	1.00		0.93		0.86		0.83		0.81
Total interest-bearing deposits	0.41		0.38		0.35		0.35		0.34
Total deposits	0.34		0.31		0.28		0.29		0.28
Borrowings:
Short-term borrowings	0.09		0.22		0.63		0.89		0.56
Long-term borrowings	2.37		2.27		1.93		1.80		1.49
Total borrowings	2.31		2.21		1.92		1.79		1.49

Total interest-bearing liabilities	0.55		0.52		0.49		0.48		0.45

Net interest margin	4.35		4.40		4.44		4.50		4.49


(1)	Annualized.


(2)	Yields are presented on a fully tax-equivalent basis.


(3)	Average yields of securities available for sale are based upon historical amortized cost and exclude equity securities.


(4)	The yield on tax-exempt securities available for sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 35% for all periods presented.



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES⁽¹⁾
(Dollars in thousands)
(Unaudited)

	At Dec. 31,			At Dec. 31,
	2015			2014
Computation of tangible common equity to tangible assets:
Total equity	$	2,306,917		$	2,135,364
Less: Non-controlling interest in subsidiaries	16,001			13,715
Total TCF Financial Corporation stockholders' equity	2,290,916			2,121,649
Less:
Preferred stock	263,240			263,240
Goodwill	225,640			225,640
Other intangibles	3,126			4,641
Tangible common equity	$	1,798,910		$	1,628,128

Total assets	$	20,691,704		$	19,394,611
Less:
Goodwill	225,640			225,640
Other intangibles	3,126			4,641
Tangible assets	$	20,462,938		$	19,164,330

Tangible common equity to tangible assets	8.79		%	8.50		%

	At Dec. 31,			At Dec. 31,
	2015			2014
Computation of tangible book value per common share:
Tangible common equity	$	1,798,910		$	1,628,128
Common stock shares outstanding	169,844,464			167,461,002

Tangible book value per common share	$	10.59		$	9.72



	Three Months Ended									Year Ended
	Dec. 31,			Sep. 30,			Dec. 31,			Dec. 31,			Dec. 31,
	2015			2015			2014			2015			2014
Computation of return on average tangible common equity:
Net income available to common stockholders	$	47,645		$	47,728		$	19,141		$	177,735		$	154,799
Other intangibles amortization, net of tax	251			248			266			1,000			1,062
Adjusted net income available to common stockholders	$	47,896		$	47,976		$	19,407		$	178,735		$	155,861

Average balances:
Total equity	$	2,281,994		$	2,238,083		$	2,124,237		$	2,217,204		$	2,058,442
Less: Non-controlling interest in subsidiaries	18,976			19,469			14,835			19,514			17,014
Total TCF Financial Corporation stockholders' equity	2,263,018			2,218,614			2,109,402			2,197,690			2,041,428
Less:
Preferred stock	263,240			263,240			263,240			263,240			263,240
Goodwill	225,640			225,640			225,640			225,640			225,640
Other intangibles	3,342			3,738			4,874			3,913			5,498
Average tangible common equity	$	1,770,796		$	1,725,996		$	1,615,648		$	1,704,897		$	1,547,050

Return on average tangible common equity⁽²⁾	10.82		%	11.12		%	4.80		%	10.48		%	10.08		%

(1)

When evaluating capital adequacy and utilization, management considers financial measures such as tangible common equity to tangible assets, tangible book value per common share and return on average tangible common equity. These measures are non-GAAP financial measures and are viewed by management as useful indicators of capital levels available to withstand unexpected market or economic conditions and also provide investors, regulators and other users with information to be viewed in relation to other banking institutions.


(2)	Annualized.

TCF FINANCIAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - January 28, 2016

Attached files

TCF FINANCIAL CORP Reports