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	a2q17earningspresentatio.htm
8-K - 8-K - TCF FINANCIAL CORP	tcf63017form8-kearningsrel.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 $60.4 MILLION, OR 33 CENTS PER SHARE

SECOND QUARTER OBSERVATIONS


–	Revenue of $341.8 million, up 3.3 percent from the second quarter of 2016


–	Net interest income of $227.2 million, up 6.7 percent from the second quarter of 2016


–	Net interest margin of 4.52 percent, up 17 basis points from the second quarter of 2016


–	Period-end loans and leases of $18.4 billion, up 5.1 percent from June 30, 2016


–	Net charge-offs as a percentage of average loans and leases of 0.28 percent, up 5 basis points from the second quarter of 2016


–	Non-accrual loans and leases of $129.3 million, down 33.9 percent from June 30, 2016


–	Average deposits of $17.3 billion, up 0.2 percent from the second quarter of 2016


–	Efficiency ratio of 68.19%, down 50 bps from the second quarter of 2016


–	Effective income tax rate of 28.9 percent, down 400 basis points from the second quarter of 2016


–	Earnings per share of 33 cents, up 6.5 percent from the second quarter of 2016



Summary of Financial Results																				Table 1
										Percent Change
(Dollars in thousands, except per-share data)	2Q			1Q			2Q			2Q17 vs		2Q17 vs		YTD			YTD			Percent
	2017			2017			2016			1Q17		2Q16		2017			2016			Change
Net income attributable to TCF	$	60,432		$	46,278		$	57,694		30.6	%	4.7	%	$	106,710		$	105,740		0.9	%
Net interest income	227,161			222,114			212,984			2.3		6.7		449,275			424,642			5.8
Diluted earnings per common share	0.33			0.25			0.31			32.0		6.5		0.58			0.57			1.8

Financial Ratios⁽¹⁾
Return on average assets	1.17		%	0.90		%	1.14		%					1.03		%	1.05		%
Return on average common equity	9.96			7.64			10.09							8.82			9.28
Return on average tangible common equity⁽²⁾	11.15			8.55			11.38							9.87			10.49
Net interest margin	4.52			4.46			4.35							4.49			4.36
Net charge-offs as a percentage of average loans and leases	0.28			0.11			0.23							0.20			0.25

(1) Annualized.
(2) See "Reconciliation of GAAP to Non-GAAP Financial Measures" table.

WAYZATA, Minn. (July 24, 2017) - TCF Financial Corporation ("TCF" or the "Company") (NYSE: TCF) today reported net income of $60.4 million for the second quarter of 2017, compared with $57.7 million for the second quarter of 2016 and $46.3 million for the first quarter of 2017. Diluted earnings per common share was 33 cents for the second quarter of 2017, compared with 31 cents for the second quarter of 2016 and 25 cents for the first quarter of 2017.

"TCF reported solid second quarter results driven by strong revenue and balance sheet growth and stable credit quality,” said Craig R. Dahl, chairman and chief executive officer. "TCF’s strong growth in net interest income was a key driver in creating a more stable source of revenue. We were able to generate margin expansion on both a linked quarter and year-over-year basis primarily due to our asset sensitive balance sheet. In addition, a strong quarter of leasing and equipment finance revenue continues to demonstrate the strength of our diversified model. We also continue to make important investments to enhance our technology capabilities and drive efficiencies.

"TCF’s auto finance business is performing as expected following the announced strategic shift last quarter. During the first full quarter of implementation, the auto finance business saw reduced loan originations, increased held for investment loan yield and risk-adjusted yield, reduced reliance on gain on sale revenue and a more efficient operating structure. As the transition continues, credit performance remains within our expectations and the business remains on track to support the organization’s focus on driving profitable growth and increasing operating leverage moving forward."



Revenue

Total Revenue																				Table 2
										Percent Change
(Dollars in thousands)	2Q			1Q			2Q			2Q17 vs		2Q17 vs		YTD			YTD				Percent
	2017			2017			2016			1Q17		2Q16		2017			2016				Change
Net interest income	$	227,161		$	222,114		$	212,984		2.3	%	6.7	%	$	449,275		$	424,642			5.8	%
Non-interest income:
Fees and service charges	32,733			31,282			34,622			4.6		(5.5	)	64,015			67,439				(5.1	)
Card revenue	14,154			13,150			14,083			7.6		0.5		27,304			27,446				(0.5	)
ATM revenue	5,061			4,675			5,288			8.3		(4.3	)	9,736			10,309				(5.6	)
Subtotal	51,948			49,107			53,993			5.8		(3.8	)	101,055			105,194				(3.9	)
Gains on sales of auto loans, net	380			2,864			10,143			(86.7	)	(96.3	)	3,244			22,063				(85.3	)
Gains on sales of consumer real estate loans, net	8,980			8,891			10,839			1.0		(17.2	)	17,871			20,223				(11.6	)
Servicing fee income	10,730			11,651			9,502			(7.9	)	12.9		22,381			18,385				21.7
Subtotal	20,090			23,406			30,484			(14.2	)	(34.1	)	43,496			60,671				(28.3	)
Leasing and equipment finance	39,830			28,298			31,074			40.8		28.2		68,128			59,561				14.4
Other	2,795			2,703			2,405			3.4		16.2		5,498			5,248				4.8
Fees and other revenue	114,663			103,514			117,956			10.8		(2.8	)	218,177			230,674				(5.4	)
Gains (losses) on securities, net	—			—			—			—		—		—			(116		)		(100.0	)
Total non-interest income	114,663			103,514			117,956			10.8		(2.8	)	218,177			230,558				(5.4	)
Total revenue	$	341,824		$	325,628		$	330,940		5.0		3.3		$	667,452		$	655,200			1.9

Net interest margin⁽¹⁾	4.52		%	4.46		%	4.35		%					4.49		%	4.36		%
Total non-interest income as a percentage of total revenue	33.5			31.8			35.6							32.7			35.2

(1) Annualized.

Net Interest Income


•	Net interest income for the second quarter of 2017 increased $14.2 million, or 6.7 percent, from the second quarter of 2016 and increased $5.0 million, or 2.3 percent, from the first quarter of 2017. The increases in net interest income were primarily due to increases in interest income on loans and leases, partially offset by decreases in interest income on loans held for sale.

•

Total interest income increased $14.5 million, or 6.2 percent, from the second quarter of 2016 and increased $6.2 million, or 2.6 percent, from the first quarter of 2017, primarily due to increased average yields on the variable-rate inventory finance loans, variable- and adjustable-rate consumer real estate and commercial loans and fixed-rate auto finance loans. In addition, the increase from the second quarter of 2016 was due to higher average balances in the commercial, leasing and equipment finance and inventory finance portfolios, partially offset by a lower average balance in the consumer real estate portfolio.


•	Net interest margin for the second quarter of 2017 was 4.52 percent, compared with 4.35 percent for the second quarter of 2016 and 4.46 percent for the first quarter of 2017. The increases from both periods were primarily due to higher average yields on the variable- and adjustable-rate loans due to interest rate increases.

Non-interest Income


•	TCF sold $48.0 million, $533.4 million and $250.6 million of auto loans during the second quarters of 2017 and 2016 and the first quarter of 2017, respectively, resulting in net gains in each respective period. The decreases from both periods were due to the strategic shift in auto finance.


•	TCF sold $273.4 million, $344.6 million and $379.4 million of consumer real estate loans during the second quarters of 2017 and 2016 and the first quarter of 2017, respectively, resulting in net gains in each respective period.

•

Servicing fee income was $10.7 million on $5.3 billion of average loans and leases serviced for others for the second quarter of 2017, compared with $9.5 million on $4.7 billion for the second quarter of 2016 and $11.7 million on $5.6 billion for the first quarter of 2017. The increase from the second quarter of 2016 was due to the cumulative effect of the increase in the portfolio of consumer real estate and auto finance loans sold with servicing retained by TCF. The decrease from the first quarter of 2017 was primarily due to the shift in auto finance, resulting in a decrease in the portfolio of auto finance loans sold with servicing retained by TCF.


•	Leasing and equipment finance non-interest income for the second quarter of 2017 increased $8.8 million, or 28.2 percent, from the second quarter of 2016 and increased $11.5 million, or 40.8 percent, from the first quarter of 2017 due to customer-driven events resulting in increases in sales-type and operating lease revenue.



Loans and Leases

Period-End and Average Loans and Leases															Table 3
							Percent Change
(Dollars in thousands)	2Q		1Q		2Q		2Q17 vs		2Q17 vs		YTD		YTD		Percent
	2017		2017		2016		1Q17		2Q16		2017		2016		Change
Period-End:
Consumer real estate:
First mortgage lien	$	2,070,385	$	2,166,691	$	2,409,320	(4.4	)%	(14.1	)%
Junior lien	2,701,592		2,494,696		2,677,522		8.3		0.9
Total consumer real estate	4,771,977		4,661,387		5,086,842		2.4		(6.2	)
Commercial	3,488,725		3,376,050		3,096,046		3.3		12.7
Leasing and equipment finance	4,333,735		4,276,008		4,120,359		1.4		5.2
Inventory finance	2,509,485		2,864,248		2,334,893		(12.4	)	7.5
Auto finance	3,243,144		2,780,416		2,812,807		16.6		15.3
Other	19,459		16,785		20,890		15.9		(6.9	)
Total	$	18,366,525	$	17,974,894	$	17,471,837	2.2		5.1

Average:
Consumer real estate:
First mortgage lien	$	2,117,138	$	2,237,801	$	2,464,692	(5.4	)%	(14.1	)%	$	2,177,136	$	2,519,303	(13.6	)%
Junior lien	2,628,980		2,791,200		2,794,035		(5.8	)	(5.9	)	2,709,642		2,839,448		(4.6	)
Total consumer real estate	4,746,118		5,029,001		5,258,727		(5.6	)	(9.7	)	4,886,778		5,358,751		(8.8	)
Commercial	3,417,052		3,302,891		3,109,946		3.5		9.9		3,360,287		3,134,023		7.2
Leasing and equipment finance	4,277,376		4,285,944		4,032,112		(0.2	)	6.1		4,281,636		4,012,395		6.7
Inventory finance	2,723,340		2,696,787		2,564,648		1.0		6.2		2,710,137		2,499,091		8.4
Auto finance	3,149,974		2,714,862		2,751,679		16.0		14.5		2,933,620		2,727,779		7.5
Other	10,235		9,740		9,585		5.1		6.8		9,989		9,802		1.9
Total	$	18,324,095	$	18,039,225	$	17,726,697	1.6		3.4		$	18,182,447	$	17,741,841	2.5

•

Period-end loans and leases were $18.4 billion at June 30, 2017, an increase of $0.9 billion, or 5.1 percent, from June 30, 2016 and an increase of $0.4 billion, or 2.2 percent, from March 31, 2017. Average loans and leases were $18.3 billion for the second quarter of 2017, an increase of $0.6 billion, or 3.4 percent, from the second quarter of 2016 and an increase of $0.3 billion, or 1.6 percent, from the first quarter of 2017.

The increases from June 30, 2016 for period-end and average loans and leases were primarily due to increases in the auto finance and commercial portfolios, as well as increases in the leasing and equipment finance and inventory finance portfolios, partially offset by decreases in the consumer real estate portfolio. The increases in the auto finance portfolio were primarily due to the reclassification of approximately $345 million of loans from held for sale to held for investment during the second quarter of 2017. The increases in the commercial portfolio were primarily attributable to originations outpacing lower prepayments and pay-offs. The decreases in the consumer real estate portfolio were primarily due to decreases in the first mortgage lien portfolio due to run-off.

The increase from March 31, 2017 for period-end loans and leases was primarily due to an increase in the auto finance portfolio due to the strategic shift and an increase in the consumer real estate junior lien portfolio, partially offset by a seasonal decrease in the inventory finance portfolio. The increase from the first quarter of 2017 for average loans and leases was primarily due to an increase in the auto finance portfolio, partially offset by a decrease in the consumer real estate portfolio.

•

Loan and lease originations were $4.1 billion for the second quarter of 2017, a decrease of $0.2 billion, or 4.8 percent, from the second quarter of 2016 and an increase of $0.1 billion, or 2.0 percent, from the first quarter of 2017. The decrease from the second quarter of 2016 was primarily due to decreased originations in auto finance, partially offset by higher inventory finance originations. The increase from the first quarter of 2017 was primarily due to increased originations in consumer real estate and leasing and equipment finance, partially offset by lower auto finance originations.



Credit Quality

Credit Trends																	Table 4
																Change
(Dollars in thousands)	2Q			1Q			4Q			3Q			2Q			2Q17 vs	2Q17 vs
	2017			2017			2016			2016			2016			1Q17	2Q16
Over 60-day delinquencies as a percentage of period-end loans and leases⁽¹⁾	0.11		%	0.09		%	0.12		%	0.12		%	0.12		%	2 bps	(1) bps
Net charge-offs as a percentage of average loans and leases⁽²⁾	0.28			0.11			0.27			0.26			0.23			17	5
Non-accrual loans and leases and other real estate owned	$	158,000		$	170,940		$	228,242		$	223,759		$	232,334		(7.6)%	(32.0)%
Provision for credit losses	19,446			12,193			19,888			13,894			13,250			59.5	46.8

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

•

The over 60-day delinquency rate, excluding non-accrual loans and leases, was 0.11 percent at June 30, 2017, down from 0.12 percent at June 30, 2016, and up from 0.09 percent at March 31, 2017. The decrease from June 30, 2016 was primarily driven by improved delinquencies in the commercial and consumer real estate first mortgage lien portfolios, partially offset by higher delinquencies in the auto finance portfolio. The increase from March 31, 2017 was primarily driven by higher delinquencies in the auto finance portfolio.

•

The net charge-off rate was 0.28 percent for the second quarter of 2017, up from 0.23 percent for the second quarter of 2016 and up from 0.11 percent for the first quarter of 2017. The increase from the second quarter of 2016 was primarily due to increased net charge-offs in the commercial and auto finance portfolios, partially offset by decreased net charge-offs in the consumer real estate first mortgage lien portfolio. The increase from the first quarter of 2017 was primarily due to an $8.7 million recovery of previously charged-off consumer real estate non-accrual loans that were sold in the first quarter of 2017, partially offset by decreased net charge-offs in the auto finance portfolio. Excluding the $8.7 million recovery from the consumer real estate non-accrual loan sale, the net charge-off rate was 0.31% for the first quarter of 2017.

•

Non-accrual loans and leases and other real estate owned were $158.0 million at June 30, 2017, a decrease of $74.3 million, or 32.0 percent, from June 30, 2016, and a decrease of $12.9 million, or 7.6 percent, from March 31, 2017. Non-accrual loans and leases were $129.3 million at June 30, 2017, a decrease of $66.3 million, or 33.9 percent, from June 30, 2016 and a decrease of $9.7 million, or 7.0 percent, from March 31, 2017. The decrease from June 30, 2016 was primarily due to a decrease in consumer real estate non-accrual loans driven by the sale of $49.4 million of non-accrual loans in the first quarter of 2017. The decrease from March 31, 2017 was primarily due to decreases in commercial, consumer real estate and inventory finance non-accrual loans. Other real estate owned was $28.7 million at June 30, 2017, a decrease of $8.1 million, or 21.9 percent, from June 30, 2016, and a decrease of $3.2 million, or 10.1 percent, from March 31, 2017. The decreases from both periods were primarily due to the sales of consumer real estate properties outpacing additions.


•	Provision for credit losses was $19.4 million for the second quarter of 2017, an increase of $6.2 million, or 46.8 percent, from the second quarter of 2016, and an increase of $7.3 million, or 59.5 percent, from the first quarter of 2017.

The increase from the second quarter of 2016 was primarily due to increases in the provision for credit losses attributable to the auto finance and commercial portfolios, partially offset by decreases in the provision for credit losses attributable to the inventory finance and consumer real estate portfolios. The increase in the provision for credit losses attributable to the auto finance portfolio was primarily due to growth in the portfolio, increased net charge-offs and increased reserve requirements due to the reclassification of loans from held for sale to held for investment. The increase in the provision for credit losses attributable to the commercial portfolio was primarily due to increased net charge-offs related to the work-out activities of three loans transferred to non-accrual during the first quarter of 2017 and growth in the portfolio. The decrease in provision for credit losses attributable to the inventory finance portfolio was primarily due to improving credit quality and the decrease in provision for credit losses attributable to the consumer real estate portfolio was primarily due to a decrease in the loan balance and net charge-offs in the consumer real estate first mortgage lien portfolio.

The increase from the first quarter of 2017 was primarily due to the recovery of $8.7 million in the first quarter of 2017 on previous charge-offs related to the consumer real estate non-accrual loans that were sold and an increase in the provision for credit losses in the second quarter of 2017 attributable to the reclassification of auto finance loans from held for sale to held for investment, partially offset by a decrease in the provision for credit losses attributable to the inventory finance portfolio due to a decrease in the portfolio.



Deposits

Average Deposits																				Table 5
										Percent Change
(Dollars in thousands)	2Q			1Q			2Q			2Q17 vs		2Q17 vs		YTD			YTD			Percent
	2017			2017			2016			1Q17		2Q16		2017			2016			Change

Checking	$	6,012,235		$	5,914,203		$	5,727,147		1.7	%	5.0	%	$	5,963,488		$	5,660,223		5.4	%
Savings	4,822,338			4,773,788			4,690,376			1.0		2.8		4,798,198			4,702,072			2.0
Money market	2,221,807			2,385,353			2,557,897			(6.9	)	(13.1	)	2,303,129			2,515,324			(8.4	)
Certificates of deposit	4,266,488			4,033,143			4,308,367			5.8		(1.0	)	4,150,460			4,206,659			(1.3	)
Total average deposits	$	17,322,868		$	17,106,487		$	17,283,787		1.3		0.2		$	17,215,275		$	17,084,278		0.8

Average interest rate on deposits⁽¹⁾	0.33		%	0.33		%	0.37		%					0.33		%	0.36		%

(1) Annualized.

•

Total average deposits for the second quarter of 2017 increased $39.1 million, or 0.2 percent, from the second quarter of 2016 and increased $216.4 million or 1.3 percent, from the first quarter of 2017. The increase from the second quarter of 2016 was primarily due to growth in average checking and savings balances, partially offset by a decrease in money market balances. The increase from the first quarter of 2017 was primarily due to growth in average certificates of deposit, partially offset by a decrease in money market balances.


•	The average interest rate on deposits for the second quarter of 2017 was 0.33 percent, down 4 basis points from the second quarter of 2016 and consistent with the first quarter of 2017. The decrease from the second quarter of 2016 was primarily due to decreased average interest rates on money market balances.



Non-interest Expense

Non-interest Expense																			Table 6
										Change
(Dollars in thousands)	2Q			1Q			2Q			2Q17 vs		2Q17 vs	YTD			YTD			Percent
	2017			2017			2016			1Q17		2Q16	2017			2016			Change

Compensation and employee benefits	$	115,918		$	124,477		$	118,093		(6.9	)%	(1.8)%	$	240,395		$	242,566		(0.9	)%
Occupancy and equipment	38,965			39,600			36,884			(1.6	)	5.6	78,565			73,892			6.3
Other	61,075			64,037			59,416			(4.6	)	2.8	125,112			112,764			11.0
Subtotal	215,958			228,114			214,393			(5.3	)	0.7	444,072			429,222			3.5
Operating lease depreciation	12,466			11,242			9,842			10.9		26.7	23,708			19,415			22.1
Foreclosed real estate and repossessed assets, net	4,639			4,549			3,135			2.0		48.0	9,188			7,055			30.2
Other credit costs, net	24			101			(54		)	(76.2	)	N.M.	125			(42		)	N.M.
Total non-interest expense	$	233,087		$	244,006		$	227,316		(4.5	)	2.5	$	477,093		$	455,650		4.7

Efficiency ratio	68.19		%	74.93		%	68.69		%	(674) bps		(50) bps	71.48		%	69.54		%	194 bps

N.M. Not Meaningful.

•

Compensation and employee benefits expense decreased $2.2 million, or 1.8 percent, from the second quarter of 2016 and decreased $8.6 million, or 6.9 percent, from the first quarter of 2017. The decrease from the second quarter of 2016 was primarily due to reduced headcount in auto finance, partially offset by higher enterprise services contract labor utilization. The decrease from the first quarter of 2017 was primarily due to seasonality of payroll taxes and reduced headcount in auto finance.

•

Other non-interest expense increased $1.7 million, or 2.8 percent, from the second quarter of 2016 and decreased $3.0 million, or 4.6 percent, from the first quarter of 2017. The increase from the second quarter of 2016 was primarily due to higher professional fees related to strategic investments in technology capabilities, as well as advertising and marketing expenses, partially offset by $2.9 million of branch realignment expense incurred in the second quarter of 2016. The decrease from the first quarter of 2017 was primarily due to lower severance expense in the auto finance business.

•

Net expenses related to foreclosed real estate and repossessed assets increased $1.5 million, or 48.0 percent, from the second quarter of 2016 and were consistent with the first quarter of 2017. The increase from the second quarter of 2016 was primarily due to lower gains on sales of consumer real estate properties and higher repossessed assets expense attributable to auto finance, partially offset by lower operating costs.

Income Tax Expense

•

The Company’s effective income tax rate was 28.9 percent for the second quarter of 2017, compared with 32.9 percent for the second quarter of 2016 and 30.0 percent for the first quarter of 2017. The effective income tax rate for the second quarter of 2017 was impacted by a $3.4 million favorable state tax settlement and $0.7 million of tax benefits related to stock compensation. The effective income tax rate for the first quarter of 2017 was impacted by $2.0 million of tax benefits related to stock compensation.



Capital

Capital Information				Table 7
	At Jun. 30,			At Dec. 31,
(Dollars in thousands, except per-share data)	2017			2016
Total equity	$	2,549,831		$	2,444,645
Book value per common share	13.20			12.66
Tangible book value per common share⁽¹⁾	11.74			11.33
Common equity to assets	10.26		%	10.09		%
Tangible common equity to tangible assets⁽¹⁾	9.24			9.13
Capital accumulation rate⁽²⁾	6.70			8.59

	At Jun. 30,			At Dec. 31,
Regulatory Capital:	2017⁽³⁾			2016
Common equity Tier 1 capital	$	2,036,369		$	1,970,323
Tier 1 capital	2,317,915			2,248,221
Total capital	2,683,319			2,635,925

Regulatory Capital Ratios:
Common equity Tier 1 capital ratio	10.24		%	10.24		%
Tier 1 risk-based capital ratio	11.66			11.68
Total risk-based capital ratio	13.49			13.69
Tier 1 leverage ratio	10.76			10.73

(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 2Q 2017 are preliminary pending completion and filing of the Company's regulatory reports.


•	TCF maintained strong capital ratios as the Company accumulated capital through earnings.

•

On July 19, 2017, TCF's Board of Directors declared a regular quarterly cash dividend of 7.5 cents per common share, payable on September 1, 2017, to stockholders of record at the close of business on August 15, 2017. TCF also declared dividends on the 7.50% Series A and 6.45% Series B Non-Cumulative Perpetual Preferred Stock, both payable on September 1, 2017, to stockholders of record at the close of business on August 15, 2017.

Webcast Information

A live webcast of TCF's conference call to discuss the second quarter earnings will be hosted at TCF's website, http://ir.tcfbank.com, on July 24, 2017 at 9:00 a.m. CDT. 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 June 30, 2017, TCF had $22.1 billion in total assets and 321 branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona and South Dakota providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing, 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, targets, guidance, statements of the Company's plans and objectives, forecasts of market trends and other matters, are forward-looking statements based on the Company's assumptions and beliefs. Such statements may be identified by such words or phrases as "will likely result," "are expected to," "will continue," "outlook," "will benefit," "is anticipated," "estimate," "project," "management believes" or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed in such statements and no assurance can be given that the results in any forward-looking statement will be achieved. For these statements, TCF claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date on which it is made, and we disclaim any obligation to subsequently revise any forward-looking statement 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, 2016 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; 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 ("CFPB") 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, or new restrictions on loan and lease 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; governmental regulations or judicial actions affecting the security interests of creditors; deficiencies in TCF's compliance programs, including under the Bank Secrecy Act in past or future periods, which may result in regulatory enforcement action including monetary penalties; increased health care costs including those resulting from 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 including those 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 either of the primary supermarket chains in which TCF maintains supermarket branches; costs related to closing underperforming branches; inability to timely close underperforming branches due to long-term lease obligations; slower than anticipated growth in existing or acquired businesses; inability to successfully execute on TCF's growth strategy through acquisitions or expanding existing business relationships; failure to expand or diversify TCF's balance sheet through new or expanded programs or opportunities; 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, such as by failing to develop and maintain technology necessary to satisfy customer demands, costs and possible disruptions related to upgrading systems; the failure to attract and retain key employees.

Litigation Risks. Results of litigation or government enforcement actions such as TCF's pending litigation with the CFPB and related matters, 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; 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 June 30,					Change
	2017		2016			$			%
Interest income:
Loans and leases	$	234,092	$	214,128		$	19,964		9.3	%
Securities available for sale	8,052		6,396			1,656			25.9
Securities held to maturity	1,035		1,116			(81		)	(7.3	)
Loans held for sale and other	5,338		12,364			(7,026		)	(56.8	)
Total interest income	248,517		234,004			14,513			6.2
Interest expense:
Deposits	14,436		15,893			(1,457		)	(9.2	)
Borrowings	6,920		5,127			1,793			35.0
Total interest expense	21,356		21,020			336			1.6
Net interest income	227,161		212,984			14,177			6.7
Provision for credit losses	19,446		13,250			6,196			46.8
Net interest income after provision for credit losses	207,715		199,734			7,981			4.0
Non-interest income:
Fees and service charges	32,733		34,622			(1,889		)	(5.5	)
Card revenue	14,154		14,083			71			0.5
ATM revenue	5,061		5,288			(227		)	(4.3	)
Subtotal	51,948		53,993			(2,045		)	(3.8	)
Gains on sales of auto loans, net	380		10,143			(9,763		)	(96.3	)
Gains on sales of consumer real estate loans, net	8,980		10,839			(1,859		)	(17.2	)
Servicing fee income	10,730		9,502			1,228			12.9
Subtotal	20,090		30,484			(10,394		)	(34.1	)
Leasing and equipment finance	39,830		31,074			8,756			28.2
Other	2,795		2,405			390			16.2
Fees and other revenue	114,663		117,956			(3,293		)	(2.8	)
Gains (losses) on securities, net	—		—			—			—
Total non-interest income	114,663		117,956			(3,293		)	(2.8	)
Non-interest expense:
Compensation and employee benefits	115,918		118,093			(2,175		)	(1.8	)
Occupancy and equipment	38,965		36,884			2,081			5.6
Other	61,075		59,416			1,659			2.8
Subtotal	215,958		214,393			1,565			0.7
Operating lease depreciation	12,466		9,842			2,624			26.7
Foreclosed real estate and repossessed assets, net	4,639		3,135			1,504			48.0
Other credit costs, net	24		(54		)	78			N.M.
Total non-interest expense	233,087		227,316			5,771			2.5
Income before income tax expense	89,291		90,374			(1,083		)	(1.2	)
Income tax expense	25,794		29,706			(3,912		)	(13.2	)
Income after income tax expense	63,497		60,668			2,829			4.7
Income attributable to non-controlling interest	3,065		2,974			91			3.1
Net income attributable to TCF Financial Corporation	60,432		57,694			2,738			4.7
Preferred stock dividends	4,847		4,847			—			—
Net income available to common stockholders	$	55,585	$	52,847		$	2,738		5.2

Earnings per common share:
Basic	$	0.33	$	0.32		$	0.01		3.1	%
Diluted	0.33		0.31			0.02			6.5

Dividends declared per common share	$	0.075	$	0.075		$	—		—	%

Average common and common equivalent shares
outstanding (in thousands):
Basic	168,594		167,334			1,260			0.8	%
Diluted	168,857		167,849			1,008			0.6

N.M. Not Meaningful.



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

	Six Months Ended June 30,					Change
	2017		2016			$			%
Interest income:
Loans and leases	$	453,640	$	428,933		$	24,707		5.8	%
Securities available for sale	16,032		11,894			4,138			34.8
Securities held to maturity	2,315		2,435			(120		)	(4.9	)
Loans held for sale and other	18,837		23,084			(4,247		)	(18.4	)
Total interest income	490,824		466,346			24,478			5.2
Interest expense:
Deposits	28,151		30,884			(2,733		)	(8.8	)
Borrowings	13,398		10,820			2,578			23.8
Total interest expense	41,549		41,704			(155		)	(0.4	)
Net interest income	449,275		424,642			24,633			5.8
Provision for credit losses	31,639		32,092			(453		)	(1.4	)
Net interest income after provision for credit losses	417,636		392,550			25,086			6.4
Non-interest income:
Fees and service charges	64,015		67,439			(3,424		)	(5.1	)
Card revenue	27,304		27,446			(142		)	(0.5	)
ATM revenue	9,736		10,309			(573		)	(5.6	)
Subtotal	101,055		105,194			(4,139		)	(3.9	)
Gains on sales of auto loans, net	3,244		22,063			(18,819		)	(85.3	)
Gains on sales of consumer real estate loans, net	17,871		20,223			(2,352		)	(11.6	)
Servicing fee income	22,381		18,385			3,996			21.7
Subtotal	43,496		60,671			(17,175		)	(28.3	)
Leasing and equipment finance	68,128		59,561			8,567			14.4
Other	5,498		5,248			250			4.8
Fees and other revenue	218,177		230,674			(12,497		)	(5.4	)
Gains (losses) on securities, net	—		(116		)	116			(100.0	)
Total non-interest income	218,177		230,558			(12,381		)	(5.4	)
Non-interest expense:
Compensation and employee benefits	240,395		242,566			(2,171		)	(0.9	)
Occupancy and equipment	78,565		73,892			4,673			6.3
Other	125,112		112,764			12,348			11.0
Subtotal	444,072		429,222			14,850			3.5
Operating lease depreciation	23,708		19,415			4,293			22.1
Foreclosed real estate and repossessed assets, net	9,188		7,055			2,133			30.2
Other credit costs, net	125		(42		)	167			N.M.
Total non-interest expense	477,093		455,650			21,443			4.7
Income before income tax expense	158,720		167,458			(8,738		)	(5.2	)
Income tax expense	46,637		56,509			(9,872		)	(17.5	)
Income after income tax expense	112,083		110,949			1,134			1.0
Income attributable to non-controlling interest	5,373		5,209			164			3.1
Net income attributable to TCF Financial Corporation	106,710		105,740			970			0.9
Preferred stock dividends	9,694		9,694			—			—
Net income available to common stockholders	$	97,016	$	96,046		$	970		1.0

Earnings per common share:
Basic	$	0.58	$	0.57		$	0.01		1.8	%
Diluted	0.58		0.57			0.01			1.8

Dividends declared per common share	$	0.15	$	0.15		$	—		—	%

Average common and common equivalent shares
outstanding (in thousands):
Basic	168,250		167,111			1,139			0.7	%
Diluted	168,615		167,638			977			0.6

N.M. Not Meaningful.



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

	Three Months Ended June 30,						Change
	2017			2016			$			%
Net income attributable to TCF Financial Corporation	$	60,432		$	57,694		$	2,738		4.7	%
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities available for sale and interest-only strips	12,341			13,568			(1,227		)	(9.0	)
Net unrealized gains (losses) on net investment hedges	(1,149		)	(210		)	(939		)	N.M.
Foreign currency translation adjustment	2,007			339			1,668			N.M.
Recognized postretirement prior service cost	(7		)	(7		)	—			—
Total other comprehensive income (loss), net of tax	13,192			13,690			(498		)	(3.6	)
Comprehensive income	$	73,624		$	71,384		$	2,240		3.1

	Six Months Ended June 30,						Change
	2017			2016			$			%
Net income attributable to TCF Financial Corporation	$	106,710		$	105,740		$	970		0.9	%
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities available for sale and interest-only strips	15,110			25,605			(10,495		)	(41.0	)
Net unrealized gains (losses) on net investment hedges	(1,462		)	(2,230		)	768			34.4
Foreign currency translation adjustment	2,588			3,748			(1,160		)	(30.9	)
Recognized postretirement prior service cost	(14		)	(14		)	—			—
Total other comprehensive income (loss), net of tax	16,222			27,109			(10,887		)	(40.2	)
Comprehensive income	$	122,932		$	132,849		$	(9,917	)	(7.5	)

N.M. Not Meaningful.



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

	At June 30,			At Dec. 31,			Change
	2017			2016			$			%
ASSETS:
Cash and due from banks	$	551,463		$	609,603		$	(58,140	)	(9.5	)%
Investments	82,737			74,714			8,023			10.7
Securities held to maturity	171,320			181,314			(9,994		)	(5.5	)
Securities available for sale	1,554,951			1,423,435			131,516			9.2
Loans and leases held for sale	172,583			268,832			(96,249		)	(35.8	)
Loans and leases:
Consumer real estate:
First mortgage lien	2,070,385			2,292,596			(222,211		)	(9.7	)
Junior lien	2,701,592			2,791,756			(90,164		)	(3.2	)
Total consumer real estate	4,771,977			5,084,352			(312,375		)	(6.1	)
Commercial	3,488,725			3,286,478			202,247			6.2
Leasing and equipment finance	4,333,735			4,336,310			(2,575		)	(0.1	)
Inventory finance	2,509,485			2,470,175			39,310			1.6
Auto finance	3,243,144			2,647,741			595,403			22.5
Other	19,459			18,771			688			3.7
Total loans and leases	18,366,525			17,843,827			522,698			2.9
Allowance for loan and lease losses	(165,620		)	(160,269		)	(5,351		)	(3.3	)
Net loans and leases	18,200,905			17,683,558			517,347			2.9
Premises and equipment, net	423,745			418,372			5,373			1.3
Goodwill	227,072			225,640			1,432			0.6
Other assets	669,875			555,858			114,017			20.5
Total assets	$	22,054,651		$	21,441,326		$	613,325		2.9

LIABILITIES AND EQUITY:
Deposits:
Checking	$	6,147,423		$	6,009,151		$	138,272		2.3	%
Savings	4,823,552			4,719,481			104,071			2.2
Money market	2,128,709			2,421,467			(292,758		)	(12.1	)
Certificates of deposit	4,419,120			4,092,423			326,697			8.0
Total deposits	17,518,804			17,242,522			276,282			1.6
Short-term borrowings	8,534			4,391			4,143			94.4
Long-term borrowings	1,266,748			1,073,181			193,567			18.0
Total borrowings	1,275,282			1,077,572			197,710			18.3
Accrued expenses and other liabilities	710,734			676,587			34,147			5.0
Total liabilities	19,504,820			18,996,681			508,139			2.7
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;
171,532,487 and 171,034,506 shares issued, respectively	1,715			1,710			5			0.3
Additional paid-in capital	858,451			862,776			(4,325		)	(0.5	)
Retained earnings, subject to certain restrictions	1,453,355			1,382,901			70,454			5.1
Accumulated other comprehensive income (loss)	(17,503		)	(33,725		)	16,222			48.1
Treasury stock at cost, 42,566 shares, and other	(32,193		)	(49,419		)	17,226			34.9
Total TCF Financial Corporation stockholders' equity	2,527,065			2,427,483			99,582			4.1
Non-controlling interest in subsidiaries	22,766			17,162			5,604			32.7
Total equity	2,549,831			2,444,645			105,186			4.3
Total liabilities and equity	$	22,054,651		$	21,441,326		$	613,325		2.9



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
	Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Jun. 30,
	2017		2017		2016		2016		2016		2017		2016
Consumer real estate:
First mortgage lien	0.31	%	0.28	%	0.40	%	0.36	%	0.36	%	3	bps	(5	)	bps
Junior lien	0.05		0.05		0.05		0.03		0.03		—		2
Total consumer real estate	0.16		0.15		0.21		0.18		0.18		1		(2	)
Commercial	—		—		—		0.01		0.11		—		(11	)
Leasing and equipment finance	0.14		0.12		0.10		0.14		0.13		2		1
Inventory finance	0.01		—		—		0.01		—		1		1
Auto finance	0.20		0.13		0.23		0.20		0.13		7		7
Other	0.30		0.05		0.10		0.05		0.33		25		(3	)
Subtotal	0.11		0.09		0.12		0.12		0.12		2		(1	)
Portfolios acquired with deteriorated credit quality	—		—		—		3.06		0.02		—		(2	)
Total delinquencies	0.11		0.09		0.12		0.12		0.12		2		(1	)


(1)	Excludes non-accrual loans and leases.



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

	Three Months Ended⁽¹⁾										Change from
	Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,			Jun. 30,
	2017		2017		2016		2016		2016		2017			2016
Consumer real estate:
First mortgage lien	0.15	%	(0.18	)%	0.26	%	0.34	%	0.35	%	33		bps	(20	)	bps
Junior lien	0.05		(0.89	)	0.08		0.04		0.05		94			—
Total consumer real estate	0.09		(0.58	)	0.17		0.17		0.19		67			(10	)
Commercial	0.29		0.32		0.01		(0.01	)	0.08		(3	)		21
Leasing and equipment finance	0.14		0.13		0.10		0.18		0.11		1			3
Inventory finance	0.09		0.01		0.07		0.10		0.09		8			—
Auto finance	0.83		1.12		1.09		0.86		0.69		(29	)		14
Other	N.M.		N.M.		N.M.		N.M.		N.M.		N.M.			N.M.
Total	0.28		0.11		0.27		0.26		0.23		17			5

N.M. Not Meaningful.


(1)	Annualized.



Non-Accrual Loans and Leases Rollforward

	Three Months Ended															Change from
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Jun. 30,
	2017			2017			2016			2016			2016			2017			2016
Balance, beginning of period	$	138,981		$	181,445		$	190,047		$	195,542		$	198,649		$	(42,464	)	$	(59,668	)
Additions	23,667			34,661			32,398			28,697			35,280			(10,994		)	(11,613		)
Charge-offs	(6,819		)	(6,412		)	(4,158		)	(5,670		)	(5,475		)	(407		)	(1,344		)
Transfers to other assets	(10,870		)	(8,786		)	(17,118		)	(11,687		)	(10,310		)	(2,084		)	(560		)
Return to accrual status	(3,077		)	(2,591		)	(4,546		)	(5,447		)	(6,687		)	(486		)	3,610
Payments received	(11,647		)	(10,732		)	(14,351		)	(13,845		)	(17,774		)	(915		)	6,127
Sales	(892		)	(49,916		)	(2,764		)	—			(900		)	49,024			8
Other, net	(70		)	1,312			1,937			2,457			2,759			(1,382		)	(2,829		)
Balance, end of period	$	129,273		$	138,981		$	181,445		$	190,047		$	195,542		$	(9,708	)	$	(66,269	)



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

Other Real Estate Owned Rollforward

	Three Months Ended															Change from
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Jun. 30,
	2017			2017			2016			2016			2016			2017			2016
Balance, beginning of period	$	31,959		$	46,797		$	33,712		$	36,792		$	42,441		$	(14,838	)	$	(10,482	)
Transferred in	8,638			7,212			13,865			10,124			9,661			1,426			(1,023		)
Sales	(11,243		)	(14,982		)	(8,655		)	(12,997		)	(16,058		)	3,739			4,815
Writedowns	(1,674		)	(1,538		)	(1,281		)	(1,984		)	(2,027		)	(136		)	353
Other, net⁽¹⁾	1,047			(5,530		)	9,156			1,777			2,775			6,577			(1,728		)
Balance, end of period	$	28,727		$	31,959		$	46,797		$	33,712		$	36,792		$	(3,232	)	$	(8,065	)


(1)	Includes transfers (to) from premises and equipment.



Allowance for Loan and Lease Losses

	At					At					At					At					At
	Jun. 30,					Mar. 31,					Dec. 31,					Sep. 30,					Jun. 30,
	2017					2017					2016					2016					2016
				% of					% of					% of					% of				% of
	Balance		Portfolio			Balance		Portfolio			Balance		Portfolio			Balance		Portfolio			Balance		Portfolio
Consumer real estate	$	52,408		1.10	%	$	53,851		1.16	%	$	59,448		1.17	%	$	62,092		1.24	%	$	64,765	1.27	%
Commercial	34,669			0.99		33,697			1.00		32,695			0.99		31,648			1.00		31,161		1.01
Leasing and equipment finance	21,922			0.51		21,257			0.50		21,350			0.49		20,649			0.49		20,124		0.49
Inventory finance	12,129			0.48		15,816			0.55		13,932			0.56		11,807			0.52		12,084		0.52
Auto finance	43,893			1.35		35,108			1.26		32,310			1.22		29,115			1.07		29,772		1.06
Other	599			3.08		437			2.60		534			2.84		530			2.96		666		3.19
Total	$	165,620		0.90		$	160,166		0.89		$	160,269		0.90		$	155,841		0.90		$	158,572	0.91



Changes in Allowance for Loan and Lease Losses

	Three Months Ended															Change from
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Jun. 30,
	2017			2017			2016			2016			2016			2017			2016
Balance, beginning of period	$	160,166		$	160,269		$	155,841		$	158,572		$	160,074		$	(103	)	$	92
Charge-offs	(18,326		)	(18,902		)	(16,451		)	(16,244		)	(14,723		)	576			(3,603		)
Recoveries	5,412			13,813			4,718			4,779			4,592			(8,401		)	820
Net (charge-offs) recoveries	(12,914		)	(5,089		)	(11,733		)	(11,465		)	(10,131		)	(7,825		)	(2,783		)
Provision for credit losses	19,446			12,193			19,888			13,894			13,250			7,253			6,196
Other	(1,078		)	(7,207		)	(3,727		)	(5,160		)	(4,621		)	6,129			3,543
Balance, end of period	$	165,620		$	160,166		$	160,269		$	155,841		$	158,572		$	5,454		$	7,048



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

	Three Months Ended June 30,
	2017						2016
	Average				Yields and		Average				Yields and
	Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾		Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾
ASSETS:
Investments and other	$	259,548	$	2,716	4.20	%	$	322,477	$	2,396	2.99	%
Securities held to maturity	172,322		1,035		2.40		194,693		1,116		2.29
Securities available for sale:⁽³⁾
Taxable	821,744		4,434		2.16		697,902		3,853		2.21
Tax-exempt⁽⁴⁾	689,667		5,566		3.23		481,246		3,912		3.25
Loans and leases held for sale	165,859		2,622		6.34		497,797		9,968		8.05
Loans and leases:⁽⁵⁾
Consumer real estate:
Fixed-rate	1,963,822		27,679		5.65		2,327,409		33,143		5.73
Variable- and adjustable-rate	2,782,296		39,982		5.76		2,931,318		38,773		5.32
Total consumer real estate	4,746,118		67,661		5.72		5,258,727		71,916		5.50
Commercial:
Fixed-rate	966,884		11,126		4.62		982,914		12,129		4.96
Variable- and adjustable-rate	2,450,168		27,198		4.45		2,127,032		21,143		4.00
Total commercial	3,417,052		38,324		4.50		3,109,946		33,272		4.30
Leasing and equipment finance	4,277,376		47,936		4.48		4,032,112		44,824		4.45
Inventory finance	2,723,340		42,260		6.22		2,564,648		36,598		5.74
Auto finance	3,149,974		39,309		5.01		2,751,679		28,660		4.19
Other	10,235		137		5.37		9,585		135		5.77
Total loans and leases	18,324,095		235,627		5.15		17,726,697		215,405		4.88
Total interest-earning assets	20,433,235		252,000		4.94		19,920,812		236,650		4.77
Other assets⁽⁶⁾	1,315,495						1,286,506
Total assets	$	21,748,730					$	21,207,318
LIABILITIES AND EQUITY:
Non-interest bearing deposits:
Retail	$	1,967,542					$	1,817,734
Small business	897,391						861,394
Commercial and custodial	608,706						582,041
Total non-interest bearing deposits	3,473,639						3,261,169
Interest-bearing deposits:
Checking	2,554,563		83		0.01		2,478,673		92		0.02
Savings	4,806,371		538		0.04		4,677,681		336		0.03
Money market	2,221,807		2,481		0.45		2,557,897		4,033		0.63
Certificates of deposit	4,266,488		11,334		1.07		4,308,367		11,432		1.07
Total interest-bearing deposits	13,849,229		14,436		0.42		14,022,618		15,893		0.46
Total deposits	17,322,868		14,436		0.33		17,283,787		15,893		0.37
Borrowings:
Short-term borrowings	6,230		13		0.79		9,100		16		0.71
Long-term borrowings	1,225,022		6,907		2.26		840,739		5,111		2.43
Total borrowings	1,231,252		6,920		2.25		849,839		5,127		2.42
Total interest-bearing liabilities	15,080,481		21,356		0.57		14,872,457		21,020		0.57
Total deposits and borrowings	18,554,120		21,356		0.46		18,133,626		21,020		0.47
Other liabilities	673,740						690,363
Total liabilities	19,227,860						18,823,989
Total TCF Financial Corp. stockholders' equity	2,494,682						2,357,509
Non-controlling interest in subsidiaries	26,188						25,820
Total equity	2,520,870						2,383,329
Total liabilities and equity	$	21,748,730					$	21,207,318
Net interest income and margin			$	230,644	4.52				$	215,630	4.35


(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 leased equipment and related initial direct costs under operating leases of $200.7 million and $131.9 million for the second quarters of 2017 and 2016, respectively.



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

	Six Months Ended June 30,
	2017						2016
	Average				Yields and		Average				Yields and
	Balance		Interest⁽¹⁾		Rates⁽¹⁾		Balance		Interest⁽¹⁾		Rates⁽¹⁾
ASSETS:
Investments and other	$	272,959	$	5,463	4.03	%	$	335,778	$	4,612	2.76	%
Securities held to maturity	175,115		2,315		2.64		196,998		2,435		2.47
Securities available for sale:⁽²⁾
Taxable	818,821		9,088		2.22		669,349		7,671		2.29
Tax-exempt⁽³⁾	665,382		10,683		3.21		400,337		6,496		3.25
Loans and leases held for sale	314,256		13,374		8.58		432,741		18,472		8.58
Loans and leases:⁽⁴⁾
Consumer real estate:
Fixed-rate	2,023,317		56,966		5.67		2,379,091		68,345		5.78
Variable- and adjustable-rate	2,863,461		80,221		5.65		2,979,660		78,829		5.32
Total consumer real estate	4,886,778		137,187		5.66		5,358,751		147,174		5.52
Commercial:
Fixed-rate	983,508		22,839		4.68		997,892		24,558		4.95
Variable- and adjustable-rate	2,376,779		51,589		4.38		2,136,131		42,480		4.00
Total commercial	3,360,287		74,428		4.47		3,134,023		67,038		4.30
Leasing and equipment finance	4,281,636		95,912		4.48		4,012,395		89,478		4.46
Inventory finance	2,710,137		81,711		6.08		2,499,091		70,968		5.71
Auto finance	2,933,620		67,080		4.61		2,727,779		56,497		4.17
Other	9,989		268		5.40		9,802		277		5.70
Total loans and leases	18,182,447		456,586		5.05		17,741,841		431,432		4.88
Total interest-earning assets	20,428,980		497,509		4.90		19,777,044		471,118		4.78
Other assets⁽⁵⁾	1,289,730						1,291,993
Total assets	$	21,718,710					$	21,069,037
LIABILITIES AND EQUITY:
Non-interest bearing deposits:
Retail	$	1,924,161					$	1,784,722
Small business	896,125						857,519
Commercial and custodial	617,345						571,513
Total non-interest bearing deposits	3,437,631						3,213,754
Interest-bearing deposits:
Checking	2,542,489		166		0.01		2,459,618		173		0.01
Savings	4,781,566		1,039		0.04		4,688,923		682		0.03
Money market	2,303,129		5,419		0.47		2,515,324		7,840		0.63
Certificates of deposit	4,150,460		21,527		1.05		4,206,659		22,189		1.06
Total interest-bearing deposits	13,777,644		28,151		0.41		13,870,524		30,884		0.45
Total deposits	17,215,275		28,151		0.33		17,084,278		30,884		0.36
Borrowings:
Short-term borrowings	5,434		20		0.73		7,331		23		0.64
Long-term borrowings	1,341,391		13,378		2.00		951,626		10,797		2.27
Total borrowings	1,346,825		13,398		2.00		958,957		10,820		2.26
Total interest-bearing liabilities	15,124,469		41,549		0.55		14,829,481		41,704		0.56
Total deposits and borrowings	18,562,100		41,549		0.45		18,043,235		41,704		0.46
Other liabilities	669,544						670,635
Total liabilities	19,231,644						18,713,870
Total TCF Financial Corp. stockholders' equity	2,463,393						2,332,645
Non-controlling interest in subsidiaries	23,673						22,522
Total equity	2,487,066						2,355,167
Total liabilities and equity	$	21,718,710					$	21,069,037
Net interest income and margin			$	455,960	4.49				$	429,414	4.36


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


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


(3)	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.


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


(5)	Includes leased equipment and related initial direct costs under operating leases of $190.5 million and $132.7 million for the six months ended June 30, 2017 and 2016, respectively.



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

	Three Months Ended
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,
	2017			2017			2016			2016			2016
Interest income:
Loans and leases	$	234,092		$	219,548		$	210,848		$	210,765		$	214,128
Securities available for sale	8,052			7,980			7,553			7,126			6,396
Securities held to maturity	1,035			1,280			1,165			1,049			1,116
Loans held for sale and other	5,338			13,499			12,092			13,786			12,364
Total interest income	248,517			242,307			231,658			232,726			234,004
Interest expense:
Deposits	14,436			13,715			15,053			15,851			15,893
Borrowings	6,920			6,478			5,159			4,857			5,127
Total interest expense	21,356			20,193			20,212			20,708			21,020
Net interest income	227,161			222,114			211,446			212,018			212,984
Provision for credit losses	19,446			12,193			19,888			13,894			13,250
Net interest income after provision for credit losses	207,715			209,921			191,558			198,124			199,734
Non-interest income:
Fees and service charges	32,733			31,282			35,132			35,093			34,622
Card revenue	14,154			13,150			13,689			13,747			14,083
ATM revenue	5,061			4,675			4,806			5,330			5,288
Subtotal	51,948			49,107			53,627			54,170			53,993
Gains on sales of auto loans, net	380			2,864			1,145			11,624			10,143
Gains on sales of consumer real estate loans, net	8,980			8,891			16,676			13,528			10,839
Servicing fee income	10,730			11,651			11,404			10,393			9,502
Subtotal	20,090			23,406			29,225			35,545			30,484
Leasing and equipment finance	39,830			28,298			31,316			28,289			31,074
Other	2,795			2,703			1,365			2,270			2,405
Fees and other revenue	114,663			103,514			115,533			120,274			117,956
Gains (losses) on securities, net	—			—			135			(600		)	—
Total non-interest income	114,663			103,514			115,668			119,674			117,956
Non-interest expense:
Compensation and employee benefits	115,918			124,477			115,001			117,155			118,093
Occupancy and equipment	38,965			39,600			38,150			37,938			36,884
Other	61,075			64,037			59,235			59,421			59,416
Subtotal	215,958			228,114			212,386			214,514			214,393
Operating lease depreciation	12,466			11,242			10,906			10,038			9,842
Foreclosed real estate and repossessed assets, net	4,639			4,549			1,889			4,243			3,135
Other credit costs, net	24			101			178			83			(54		)
Total non-interest expense	233,087			244,006			225,359			228,878			227,316
Income before income tax expense	89,291			69,429			81,867			88,920			90,374
Income tax expense	25,794			20,843			29,762			30,257			29,706
Income after income tax expense	63,497			48,586			52,105			58,663			60,668
Income attributable to non-controlling interest	3,065			2,308			2,013			2,371			2,974
Net income attributable to TCF Financial Corporation	60,432			46,278			50,092			56,292			57,694
Preferred stock dividends	4,847			4,847			4,847			4,847			4,847
Net income available to common stockholders	$	55,585		$	41,431		$	45,245		$	51,445		$	52,847

Earnings per common share:
Basic	$	0.33		$	0.25		$	0.27		$	0.31		$	0.32
Diluted	0.33			0.25			0.27			0.31			0.31

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

Financial highlights:⁽¹⁾
Return on average assets	1.17		%	0.90		%	0.99		%	1.12		%	1.14		%
Return on average common equity	9.96			7.64			8.40			9.59			10.09
Net interest margin	4.52			4.46			4.30			4.34			4.35


(1)	Annualized.



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

	Jun. 30, 2017		Mar. 31, 2017		Dec. 31, 2016		Sep. 30, 2016		Jun. 30, 2016
ASSETS:
Investments and other	$	259,548	$	286,519	$	276,018	$	331,107	$	322,477
Securities held to maturity	172,322		177,939		182,177		187,414		194,693
Securities available for sale:⁽¹⁾
Taxable	821,744		815,867		791,289		747,890		697,902
Tax-exempt	689,667		640,826		610,070		570,013		481,246
Loans and leases held for sale	165,859		464,301		492,457		558,649		497,797
Loans and leases:⁽²⁾
Consumer real estate:
Fixed-rate	1,963,822		2,083,472		2,169,493		2,216,945		2,327,409
Variable- and adjustable-rate	2,782,296		2,945,529		2,916,653		2,918,631		2,931,318
Total consumer real estate	4,746,118		5,029,001		5,086,146		5,135,576		5,258,727
Commercial:
Fixed-rate	966,884		1,000,316		948,856		944,347		982,914
Variable- and adjustable-rate	2,450,168		2,302,575		2,198,661		2,147,768		2,127,032
Total commercial	3,417,052		3,302,891		3,147,517		3,092,115		3,109,946
Leasing and equipment finance	4,277,376		4,285,944		4,252,543		4,147,488		4,032,112
Inventory finance	2,723,340		2,696,787		2,389,980		2,272,409		2,564,648
Auto finance	3,149,974		2,714,862		2,647,088		2,670,272		2,751,679
Other	10,235		9,740		9,307		9,252		9,585
Total loans and leases	18,324,095		18,039,225		17,532,581		17,327,112		17,726,697
Total interest-earning assets	20,433,235		20,424,677		19,884,592		19,722,185		19,920,812
Other assets⁽³⁾	1,315,495		1,263,678		1,253,002		1,303,670		1,286,506
Total assets	$	21,748,730	$	21,688,355	$	21,137,594	$	21,025,855	$	21,207,318

LIABILITIES AND EQUITY:
Non-interest-bearing deposits:
Retail	$	1,967,542	$	1,880,298	$	1,773,673	$	1,771,840	$	1,817,734
Small business	897,391		894,845		926,388		894,761		861,394
Commercial and custodial	608,706		626,081		615,686		583,430		582,041
Total non-interest bearing deposits	3,473,639		3,401,224		3,315,747		3,250,031		3,261,169
Interest-bearing deposits:
Checking	2,554,563		2,530,281		2,454,815		2,434,934		2,478,673
Savings	4,806,371		4,756,486		4,670,906		4,661,565		4,677,681
Money market	2,221,807		2,385,353		2,429,239		2,496,590		2,557,897
Certificates of deposit	4,266,488		4,033,143		4,198,190		4,304,990		4,308,367
Total interest-bearing deposits	13,849,229		13,705,263		13,753,150		13,898,079		14,022,618
Total deposits	17,322,868		17,106,487		17,068,897		17,148,110		17,283,787
Borrowings:
Short-term borrowings	6,230		4,628		5,063		8,485		9,100
Long-term borrowings	1,225,022		1,459,053		931,720		729,737		840,739
Total borrowings	1,231,252		1,463,681		936,783		738,222		849,839
Total interest-bearing liabilities	15,080,481		15,168,944		14,689,933		14,636,301		14,872,457
Total deposits and borrowings	18,554,120		18,570,168		18,005,680		17,886,332		18,133,626
Other liabilities	673,740		665,301		695,778		708,048		690,363
Total liabilities	19,227,860		19,235,469		18,701,458		18,594,380		18,823,989
Total TCF Financial Corporation stockholders' equity	2,494,682		2,431,755		2,417,222		2,409,312		2,357,509
Non-controlling interest in subsidiaries	26,188		21,131		18,914		22,163		25,820
Total equity	2,520,870		2,452,886		2,436,136		2,431,475		2,383,329
Total liabilities and equity	$	21,748,730	$	21,688,355	$	21,137,594	$	21,025,855	$	21,207,318


(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 leased equipment and related initial direct costs under operating leases of $200.7 million, $180.3 million, $157.2 million, $138.2 million and $131.9 million for the second and first quarters of 2017, and for the fourth, third and second quarters of 2016, respectively.



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

	Jun. 30, 2017		Mar. 31, 2017		Dec. 31, 2016		Sep. 30, 2016		Jun. 30, 2016
ASSETS:
Investments and other	4.20	%	3.88	%	3.35	%	2.86	%	2.99	%
Securities held to maturity	2.40		2.88		2.56		2.24		2.29
Securities available for sale:⁽³⁾
Taxable	2.16		2.28		2.22		2.23		2.21
Tax-exempt⁽⁴⁾	3.23		3.19		3.18		3.19		3.25
Loans and leases held for sale	6.34		9.39		7.89		8.12		8.05
Loans and leases:
Consumer real estate:
Fixed-rate	5.65		5.70		5.57		5.75		5.73
Variable- and adjustable rate	5.76		5.54		5.36		5.29		5.32
Total consumer real estate	5.72		5.60		5.45		5.49		5.50
Commercial:
Fixed-rate	4.62		4.75		4.70		4.92		4.96
Variable- and adjustable-rate	4.45		4.30		4.05		3.91		4.00
Total commercial	4.50		4.43		4.25		4.22		4.30
Leasing and equipment finance	4.48		4.48		4.43		4.48		4.45
Inventory finance	6.22		5.93		5.80		6.07		5.74
Auto finance	5.01		4.15		4.04		4.06		4.19
Other	5.37		5.44		5.72		5.85		5.77
Total loans and leases	5.15		4.95		4.82		4.88		4.88

Total interest-earning assets	4.94		4.86		4.70		4.76		4.77

LIABILITIES:
Interest-bearing deposits:
Checking	0.01		0.01		0.01		0.01		0.02
Savings	0.04		0.04		0.04		0.03		0.03
Money market	0.45		0.50		0.57		0.61		0.63
Certificates of deposit	1.07		1.02		1.05		1.07		1.07
Total interest-bearing deposits	0.42		0.41		0.44		0.45		0.46
Total deposits	0.33		0.33		0.35		0.37		0.37
Borrowings:
Short-term borrowings	0.79		0.65		0.77		0.86		0.71
Long-term borrowings	2.26		1.78		2.21		2.65		2.43
Total borrowings	2.25		1.78		2.20		2.63		2.42

Total interest-bearing liabilities	0.57		0.54		0.55		0.56		0.57

Net interest margin	4.52		4.46		4.30		4.34		4.35


(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, except per share data)
(Unaudited)
		At Jun. 30,			At Dec. 31,
		2017			2016
Computation of tangible common equity to tangible assets and tangible book value per common share:
Total equity		$	2,549,831		$	2,444,645
Less: Non-controlling interest in subsidiaries		22,766			17,162
Total TCF Financial Corporation stockholders' equity		2,527,065			2,427,483
Less: Preferred stock		263,240			263,240
Total common stockholders' equity	(a)	2,263,825			2,164,243
Less:
Goodwill		227,072			225,640
Other intangibles		22,682			1,738
Tangible common equity	(b)	$	2,014,071		$	1,936,865

Total assets	(c)	$	22,054,651		$	21,441,326
Less:
Goodwill		227,072			225,640
Other intangibles		22,682			1,738
Tangible assets	(d)	$	21,804,897		$	21,213,948

Common stock shares outstanding	(e)	171,489,921			170,991,940

Common equity to assets	(a) / (c)	10.26		%	10.09		%
Tangible common equity to tangible assets	(b) / (d)	9.24		%	9.13		%

Book value per common share	(a) / (e)	$	13.20		$	12.66
Tangible book value per common share	(b) / (e)	$	11.74		$	11.33



		Three Months Ended									Six Months Ended
		Jun. 30,			Mar. 31,			Jun. 30,			Jun. 30,			Jun. 30,
		2017			2017			2016			2017			2016
Computation of return on average tangible common equity:
Net income available to common stockholders	(f)	$	55,585		$	41,431		$	52,847		$	97,016		$	96,046
Plus: Other intangibles amortization		238			123			366			361			732
Less: Income tax expense attributable to other intangibles amortization		83			42			129			125			258
Adjusted net income available to common stockholders	(g)	$	55,740		$	41,512		$	53,084		$	97,252		$	96,520

Average balances:
Total equity		$	2,520,870		$	2,452,886		$	2,383,329		$	2,487,066		$	2,355,167
Less: Non-controlling interest in subsidiaries		26,188			21,131			25,820			23,673			22,522
Total TCF Financial Corporation stockholders' equity		2,494,682			2,431,755			2,357,509			2,463,393			2,332,645
Less: Preferred stock		263,240			263,240			263,240			263,240			263,240
Average total common stockholders' equity	(h)	2,231,442			2,168,515			2,094,269			2,200,153			2,069,405
Less:
Goodwill		225,876			225,640			225,640			225,759			225,640
Other intangibles		5,045			1,675			2,596			3,369			2,781
Average tangible common equity	(i)	$	2,000,521		$	1,941,200		$	1,866,033		$	1,971,025		$	1,840,984

Return on average common equity⁽²⁾	(f) / (h)	9.96		%	7.64		%	10.09		%	8.82		%	9.28		%
Return on average tangible common equity⁽²⁾	(g) / (i)	11.15		%	8.55		%	11.38		%	9.87		%	10.49		%

(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.

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TCF FINANCIAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 24, 2017

Attached files

TCF FINANCIAL CORP Reports