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

Attached files

file	filename
EX-99.2 - EXHIBIT 99.2 - TCF FINANCIAL CORP	a3q17earningsreleasepres.htm
8-K - 8-K - TCF FINANCIAL CORP	tcf93017form8-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 $60.5 MILLION, OR 29 CENTS PER SHARE

THIRD QUARTER OBSERVATIONS


–	Revenue of $343.3 million, up 3.5 percent from the third quarter of 2016


–	Net interest income of $234.1 million, up 10.4 percent from the third quarter of 2016


–	Net interest margin of 4.61 percent, up 27 basis points from the third quarter of 2016


–	Period-end loans and leases of $19.0 billion, up 9.2 percent from September 30, 2016


–	Net charge-offs as a percentage of average loans and leases of 0.18 percent, down 8 basis points from the third quarter of 2016


–	Non-accrual loans and leases of $119.6 million, down 37.1 percent from September 30, 2016


–	Average deposits of $17.6 billion, up 2.9 percent from the third quarter of 2016


–	Efficiency ratio of 68.46 percent, improved 54 basis points from the third quarter of 2016


–	Earnings per share of 29 cents, down 2 cents from the third quarter of 2016. Impact of 4 cents per share related to the notice of our intent to redeem the Series A Non-Cumulative Perpetual Preferred Stock.



Summary of Financial Results																				Table 1
										Change
(Dollars in thousands, except per-share data)	3Q			2Q			3Q			3Q17 vs		3Q17 vs		YTD			YTD
	2017			2017			2016			2Q17		3Q16		2017			2016			Change
Net income attributable to TCF	$	60,528		$	60,432		$	56,292		0.2	%	7.5	%	$	167,238		$	162,032		3.2	%
Net interest income	234,103			227,161			212,018			3.1		10.4		683,378			636,660			7.3
Diluted earnings per common share	0.29			0.33			0.31			(12.1	)	(6.5	)	0.86			0.88			(2.3	)

Financial Ratios⁽¹⁾
Return on average assets	1.15		%	1.17		%	1.12		%	(2) bps		3	bps	1.07		%	1.07		%	—	bps
Return on average common equity	8.44			9.96			9.59			(152	)	(115	)	8.69			9.39			(70	)
Return on average tangible common equity⁽²⁾	9.57			11.15			10.78			(158	)	(121	)	9.77			10.58			(81	)
Net interest margin	4.61			4.52			4.34			9		27		4.53			4.35			18
Net charge-offs as a percentage of average loans and leases	0.18			0.28			0.26			(10	)	(8	)	0.19			0.25			(6	)

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

WAYZATA, Minn. (October 27, 2017) - TCF Financial Corporation ("TCF" or the "Company") (NYSE: TCF) today reported net income of $60.5 million for the third quarter of 2017, compared with $56.3 million for the third quarter of 2016 and $60.4 million for the second quarter of 2017. Diluted earnings per common share was 29 cents for the third quarter of 2017 (inclusive of a one-time reduction in net income available to common stockholders of $5.8 million and accrued dividends payable of $1.6 million, or 4 cents per common share, related to the notice of our intent to redeem the Series A Non-Cumulative Perpetual Preferred Stock), compared with 31 cents for the third quarter of 2016 and 33 cents for the second quarter of 2017.

"TCF reported strong third quarter results highlighted by solid loan and lease growth, continued net interest margin expansion and stable credit quality," said Craig R. Dahl, chairman and chief executive officer. "A loan and lease portfolio purchase in leasing and equipment finance drove strong growth during the quarter. We continued to deliver strong net interest margin expansion and net interest income growth as yields in our variable- and adjustable-rate loan portfolios benefited from rising interest rates.

"We improved our risk profile and recognized recoveries from previous charge-offs through our second consumer real estate non-accrual loan sale this year. Our consistent execution of our diversification strategy has enabled us to maintain stable credit quality performance.

"The positive traction we are generating from executing on our business strategy has me very optimistic about the future of TCF. With consistent loan and lease growth, a strong revenue base and the successful launch of a new digital banking platform, there is positive momentum into 2018 at TCF.”



Revenue

Total Revenue																				Table 2
										Change
(Dollars in thousands)	3Q			2Q			3Q			3Q17 vs		3Q17 vs		YTD			YTD
	2017			2017			2016			2Q17		3Q16		2017			2016				Change
Total interest income	$	257,605		$	248,517		$	232,726		3.7	%	10.7	%	$	748,429		$	699,072			7.1	%
Total interest expense	23,502			21,356			20,708			10.0		13.5		65,051			62,412				4.2
Net interest income	234,103			227,161			212,018			3.1		10.4		683,378			636,660				7.3
Non-interest income:
Fees and service charges	34,605			32,733			35,093			5.7		(1.4	)	98,620			102,532				(3.8	)
Card revenue	14,177			14,154			13,747			0.2		3.1		41,481			41,193				0.7
ATM revenue	5,234			5,061			5,330			3.4		(1.8	)	14,970			15,639				(4.3	)
Subtotal	54,016			51,948			54,170			4.0		(0.3	)	155,071			159,364				(2.7	)
Gains on sales of auto loans, net	—			380			11,624			(100.0	)	(100.0	)	3,244			33,687				(90.4	)
Gains on sales of consumer real estate loans, net	8,049			8,980			13,528			(10.4	)	(40.5	)	25,920			33,751				(23.2	)
Servicing fee income	9,966			10,730			10,393			(7.1	)	(4.1	)	32,347			28,778				12.4
Subtotal	18,015			20,090			35,545			(10.3	)	(49.3	)	61,511			96,216				(36.1	)
Leasing and equipment finance	34,080			39,830			28,289			(14.4	)	20.5		102,208			87,850				16.3
Other	2,930			2,795			2,270			4.8		29.1		8,428			7,518				12.1
Fees and other revenue	109,041			114,663			120,274			(4.9	)	(9.3	)	327,218			350,948				(6.8	)
Gains (losses) on securities, net	189			—			(600		)	N.M.		N.M.		189			(716		)		N.M.
Total non-interest income	109,230			114,663			119,674			(4.7	)	(8.7	)	327,407			350,232				(6.5	)
Total revenue	$	343,333		$	341,824		$	331,692		0.4		3.5		$	1,010,785		$	986,892			2.4

Net interest margin⁽¹⁾	4.61		%	4.52		%	4.34		%	9	bps	27	bps	4.53		%	4.35		%		18	bps
Total non-interest income as a percentage of total revenue	31.8			33.5			36.1			(170)		(430)		32.4			35.5				(310)

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

Net Interest Income

•

Net interest income for the third quarter of 2017 increased $22.1 million, or 10.4 percent, from the third quarter of 2016, primarily due to an increase in interest income on loans and leases, partially offset by a decrease in interest income on loans held for sale and an increase in total interest expense. Total interest income increased $24.9 million, or 10.7 percent, from the third quarter of 2016, primarily due to increased average yields and higher average balances of the variable- and adjustable-rate commercial loans and variable-rate inventory finance loans, as well as increased average yields on the variable- and adjustable-rate consumer real estate loans and fixed-rate auto finance loans. These increases were partially offset by a lower average balance in the fixed-rate consumer real estate portfolio. Total interest expense increased $2.8 million, or 13.5 percent, from the third quarter of 2016, primarily due to increased average rates and higher average balances of certificates of deposit, as well as higher average balances of long-term borrowings, partially offset by decreased average rates and lower average balances of money market accounts.

•

Net interest income for the third quarter of 2017 increased $6.9 million, or 3.1 percent, from the second quarter of 2017, primarily due to an increase in interest income on loans and leases, partially offset by an increase in total interest expense. Total interest income increased $9.1 million, or 3.7 percent, from the second quarter of 2017, primarily due to higher average balances and increased average yields on the variable- and adjustable-rate consumer real estate loans and fixed-rate auto finance loans, as well as increased yields on the variable- and adjustable-rate commercial loans. Total interest expense increased $2.1 million, or 10.0 percent, from the second quarter of 2017, primarily due to higher average balances and increased average rates on certificates of deposit.


•	Net interest margin was 4.61 percent for the third quarter of 2017, up 27 basis points from the third quarter of 2016 and up 9 basis points from the second 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, partially offset by higher average rates on certificates of deposit.

Non-interest Income


•	TCF sold no auto loans during the third quarter of 2017 due to the strategic shift in auto finance. TCF sold $614.9 million and $48.0 million of auto loans during the third quarter of 2016 and the second quarter of 2017, respectively, resulting in net gains in each respective period.

•

TCF sold $291.0 million, $437.1 million and $273.4 million of consumer real estate loans during the third quarters of 2017 and 2016 and the second quarter of 2017, respectively, resulting in net gains in each respective period. Included in consumer real estate loans sold in the third quarter of 2017 was $21.8 million of non-accrual loans, servicing released. As these loans were previously partially charged-off, a recovery of $4.6 million was recorded as a reduction to provision for credit losses and transaction fees of $0.4 million related to the sale were recorded in gains on sales of consumer real estate loans, net.


•	Servicing fee income was $10.0 million on $5.0 billion of average loans and leases serviced for others for the third quarter of 2017, compared with $10.4 million on $5.1 billion for the third quarter of 2016 and $10.7 million on $5.3 billion for the second quarter of 2017. The decreases from both periods were primarily due to run-off in the auto finance serviced for others portfolio.

•

Leasing and equipment finance non-interest income for the third quarter of 2017 increased $5.8 million, or 20.5 percent, from the third quarter of 2016 and decreased $5.8 million, or 14.4 percent, from the second quarter of 2017. The increase from the third quarter of 2016 was primarily due to an increase in operating lease revenue mainly driven by the acquisition of Equipment Financing & Leasing Corporation ("EFLC") in the second quarter of 2017, partially offset by a decrease in sales-type lease revenue due to customer-driven events. The decrease from the second quarter of 2017 was due to customer-driven events resulting in a decrease in sales-type lease revenue, partially offset by an increase in operating lease revenue due to the acquisition of EFLC.



Loans and Leases

Period-End and Average Loans and Leases															Table 3
							Percent Change
(Dollars in thousands)	3Q		2Q		3Q		3Q17 vs		3Q17 vs		YTD		YTD		Percent
	2017		2017		2016		2Q17		3Q16		2017		2016		Change
Period-End:
Consumer real estate:
First mortgage lien	$	1,953,199	$	2,070,385	$	2,313,044	(5.7	)%	(15.6	)%
Junior lien	2,977,613		2,701,592		2,674,280		10.2		11.3
Total consumer real estate	4,930,812		4,771,977		4,987,324		3.3		(1.1	)
Commercial	3,489,680		3,488,725		3,150,199		—		10.8
Leasing and equipment finance	4,730,931		4,333,735		4,236,224		9.2		11.7
Inventory finance	2,576,077		2,509,485		2,261,086		2.7		13.9
Auto finance	3,240,413		3,243,144		2,731,900		(0.1	)	18.6
Other	20,439		19,459		17,886		5.0		14.3
Total	$	18,988,352	$	18,366,525	$	17,384,619	3.4		9.2

Average:
Consumer real estate:
First mortgage lien	$	2,016,049	$	2,117,138	$	2,353,097	(4.8	)%	(14.3	)%	$	2,122,850	$	2,463,497	(13.8	)%
Junior lien	2,821,051		2,628,980		2,782,479		7.3		1.4		2,747,187		2,820,319		(2.6	)
Total consumer real estate	4,837,100		4,746,118		5,135,576		1.9		(5.8	)	4,870,037		5,283,816		(7.8	)
Commercial	3,473,425		3,417,052		3,092,115		1.6		12.3		3,398,413		3,119,952		8.9
Leasing and equipment finance	4,316,434		4,277,376		4,147,488		0.9		4.1		4,293,364		4,057,755		5.8
Inventory finance	2,479,416		2,723,340		2,272,409		(9.0	)	9.1		2,632,385		2,422,979		8.6
Auto finance	3,280,612		3,149,974		2,670,272		4.1		22.9		3,050,555		2,708,470		12.6
Other	11,567		10,235		9,252		13.0		25.0		10,520		9,617		9.4
Total	$	18,398,554	$	18,324,095	$	17,327,112	0.4		6.2		$	18,255,274	$	17,602,589	3.7

•

Period-end loans and leases were $19.0 billion at September 30, 2017, an increase of $1.6 billion, or 9.2 percent, from September 30, 2016 and an increase of $621.8 million, or 3.4 percent, from June 30, 2017. Average loans and leases were $18.4 billion for the third quarter of 2017, an increase of $1.1 billion, or 6.2 percent, from the third quarter of 2016 and an increase of $74.5 million, or 0.4 percent, from the second quarter of 2017.

The increase from September 30, 2016 for period-end loans and leases was primarily due to increases in the auto finance and leasing and equipment finance portfolios, as well as increases in the commercial and inventory finance portfolios. The increase in the auto finance portfolio was primarily due to the reclassification of loans from held for sale to held for investment during the second quarter of 2017. The increase in the leasing and equipment finance portfolio was primarily attributable to a loan and lease portfolio purchase of $445.5 million on September 29, 2017. The increase in average loans and leases from September 30, 2016 was primarily due to increases in the auto finance and commercial loan portfolios, as well as increases in the inventory finance and leasing and equipment finance portfolios, partially offset by a decrease in the consumer real estate portfolio. The decrease in the consumer real estate portfolio was primarily due to a decrease in the first mortgage lien portfolio due to run-off and the non-accrual loan sales in the first and third quarters of 2017 totaling $71.2 million.

The increase from June 30, 2017 for period-end loans and leases was primarily due to an increase in the leasing and equipment finance portfolio due to a loan and lease portfolio purchase during the third quarter of 2017 and an increase in the consumer real estate junior lien portfolio.

•

Loan and lease originations were $3.9 billion for the third quarter of 2017, a decrease of $314.2 million, or 7.4 percent, from the third quarter of 2016 and a decrease of $150.9 million, or 3.7 percent, from the second quarter of 2017. The decrease from the third quarter of 2016 was primarily due to decreased originations in auto finance, leasing and equipment finance, and consumer real estate, partially offset by higher inventory finance originations. The decrease from the second quarter of 2017 was primarily due to decreased originations in leasing and equipment finance, partially offset by higher commercial originations.



Credit Quality

Credit Trends																		Table 4
																Change
(Dollars in thousands)	3Q			2Q			1Q			4Q			3Q			3Q17 vs		3Q17 vs
	2017			2017			2017			2016			2016			2Q17		3Q16
Over 60-day delinquencies as a percentage of period-end loans and leases⁽¹⁾	0.13		%	0.11		%	0.09		%	0.12		%	0.12		%	2	bps	1	bps
Net charge-offs as a percentage of average loans and leases^{(2), (3), (4)}	0.18			0.28			0.11			0.27			0.26			(10	)	(8	)
Non-accrual loans and leases and other real estate owned	$	146,024		$	158,000		$	170,940		$	228,242		$	223,759		(7.6	)%	(34.7	)%
Provision for credit losses	14,545			19,446			12,193			19,888			13,894			(25.2	)	4.7

(1) Excludes non-accrual loans and leases.
(2) Annualized.
(3) Excluding the $4.6 million recovery from the consumer real estate non-accrual loan sale, net charge-offs as a percentage of average loans and leases was 0.28% for 3Q 2017.
(4) Excluding the $8.7 million recovery from the consumer real estate non-accrual loan sale, net charge-offs as a percentage of average loans and leases was 0.31% for 1Q 2017.

•

The over 60-day delinquency rate, excluding non-accrual loans and leases, was 0.13 percent at September 30, 2017, up 1 basis point from September 30, 2016, and up 2 basis points from June 30, 2017. The increases from both periods were primarily driven by the leasing and equipment finance loan and lease portfolio purchase and higher delinquencies in the auto finance portfolio. The increase from September 30, 2016 was partially offset by improved credit quality in the consumer real estate first mortgage lien portfolio.

•

The net charge-off rate was 0.18 percent for the third quarter of 2017, down 8 basis points from the third quarter of 2016 and down 10 basis points from the second quarter of 2017. The decreases from both periods were primarily due to the recovery of previous charge-offs related to the consumer real estate non-accrual loans that were sold, partially offset by increased net charge-offs in the auto finance portfolio. The decrease from the second quarter of 2017 was also due to a net recovery in the commercial portfolio. Excluding the $4.6 million recovery from the non-accrual consumer real estate loan sale, the net charge-off rate was 0.28 percent for the third quarter of 2017, up 2 basis points from the third quarter of 2016 and consistent with the second quarter of 2017.

•

Non-accrual loans and leases and other real estate owned were $146.0 million at September 30, 2017, a decrease of $77.7 million, or 34.7 percent, from September 30, 2016, and a decrease of $12.0 million, or 7.6 percent, from June 30, 2017. Non-accrual loans and leases were $119.6 million at September 30, 2017, a decrease of $70.4 million, or 37.1 percent, from September 30, 2016 and a decrease of $9.7 million, or 7.5 percent, from June 30, 2017. The decrease from September 30, 2016 was primarily due to the consumer real estate non-accrual loan sales in the first and third quarters of 2017, totaling $71.2 million, partially offset by an increase in non-accrual loans and leases in the leasing and equipment finance portfolio. The decrease from June 30, 2017 was primarily due to the consumer real estate non-accrual loan sale of $21.8 million, partially offset by an increase in non-accrual loans and leases in the leasing and equipment finance and commercial portfolios. Other real estate owned was $26.4 million at September 30, 2017, a decrease of $7.3 million, or 21.7 percent, from September 30, 2016, and a decrease of $2.3 million, or 8.1 percent, from June 30, 2017. The decreases from both periods were primarily due to the sales of consumer real estate properties outpacing additions.

•

Provision for credit losses was $14.5 million for the third quarter of 2017, an increase of $0.7 million, or 4.7 percent, from the third quarter of 2016, and a decrease of $4.9 million, or 25.2 percent, from the second quarter of 2017. The increase from the third quarter of 2016 was primarily due to increased reserve requirements related to recent hurricanes of $5.2 million based on an initial analysis of current exposure and historical portfolio performance following similar natural disasters, primarily related to the auto finance portfolio. The increase was also due to increased net charge-offs in the auto finance portfolio and increased reserve requirements unrelated to the recent hurricanes in the commercial portfolio. These increases were partially offset by the recovery of $4.6 million on previous charge-offs related to the non-accrual loans that were sold and lower reserve requirements in the consumer real estate portfolio. The decrease from the second quarter of 2017 was primarily due to the recovery of previous charge-offs related to the non-accrual loans that were sold and lower reserve requirements in the consumer real estate portfolio, partially offset by increased reserve requirements of $5.2 million related to recent hurricanes. In addition, the provision for credit losses for the second quarter of 2017 included a provision attributable to the reclassification of auto finance loans from held for sale to held for investment.



Deposits

Average Deposits																				Table 5
										Change
(Dollars in thousands)	3Q			2Q			3Q			3Q17 vs		3Q17 vs		YTD			YTD
	2017			2017			2016			2Q17		3Q16		2017			2016			Change

Checking	$	6,046,372		$	6,012,235		$	5,673,888		0.6	%	6.6	%	$	5,991,419		$	5,664,812		5.8	%
Savings	4,859,973			4,822,338			4,672,642			0.8		4.0		4,819,016			4,692,189			2.7
Money market	2,106,814			2,221,807			2,496,590			(5.2	)	(15.6	)	2,236,972			2,509,033			(10.8	)
Certificates of deposit	4,636,007			4,266,488			4,304,990			8.7		7.7		4,314,088			4,239,676			1.8
Total average deposits	$	17,649,166		$	17,322,868		$	17,148,110		1.9		2.9		$	17,361,495		$	17,105,710		1.5

Average interest rate on deposits⁽¹⁾	0.38		%	0.33		%	0.37		%	5	bps	1	bps	0.35		%	0.36		%	(1) bps

(1) Annualized.

•

Total average deposits for the third quarter of 2017 increased $501.1 million, or 2.9 percent, from the third quarter of 2016 and increased $326.3 million or 1.9 percent, from the second quarter of 2017. The increase from the third quarter of 2016 was primarily due to growth in average checking balances, certificates of deposit and savings balances, partially offset by a decrease in money market balances. The increase from the second 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 third quarter of 2017 was 0.38 percent, up 1 basis point from the third quarter of 2016 and up 5 basis points from the second quarter of 2017. The increases from both periods were primarily due to increased average interest rates on certificates of deposit and savings balances. The increase from the third quarter of 2016 was partially offset by decreased average interest rates on money market balances.



Non-interest Expense

Non-interest Expense																				Table 6
										Change
(Dollars in thousands)	3Q			2Q			3Q			3Q17 vs		3Q17 vs		YTD			YTD
	2017			2017			2016			2Q17		3Q16		2017			2016			Change

Compensation and employee benefits	$	115,127		$	115,918		$	117,155		(0.7	)%	(1.7	)%	$	355,522		$	359,721		(1.2	)%
Occupancy and equipment	38,766			38,965			37,938			(0.5	)	2.2		117,331			111,830			4.9
Other	61,408			61,075			59,421			0.5		3.3		186,520			172,185			8.3
Subtotal	215,301			215,958			214,514			(0.3	)	0.4		659,373			643,736			2.4
Operating lease depreciation	15,696			12,466			10,038			25.9		56.4		39,404			29,453			33.8
Foreclosed real estate and repossessed assets, net	3,829			4,639			4,243			(17.5	)	(9.8	)	13,017			11,298			15.2
Other credit costs, net	209			24			83			N.M.		151.8		334			41			N.M.
Total non-interest expense	$	235,035		$	233,087		$	228,878		0.8		2.7		$	712,128		$	684,528		4.0

Efficiency ratio	68.46		%	68.19		%	69.00		%	27	bps	(54) bps		70.45		%	69.36		%	109	bps

N.M. Not Meaningful.

•

Non-interest expense for the third quarter of 2017 increased $6.2 million, or 2.7 percent, from the third quarter of 2016, primarily due to increases in operating lease depreciation and other non-interest expense, partially offset by a decrease in compensation and employee benefits. Non-interest expense for the third quarter of 2017 increased $1.9 million, or 0.8 percent, from the second quarter of 2017, primarily due to an increase in operating lease depreciation, partially offset by decreases in foreclosed real estate and repossessed assets expense and compensation and employee benefits.

•

Compensation and employee benefits expense decreased $2.0 million, or 1.7 percent, from the third quarter of 2016 and decreased $0.8 million, or 0.7 percent, from the second quarter of 2017. The decrease from the third 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 second quarter of 2017 was primarily due to lower sales commissions and incentive compensation, partially offset by higher salaries.


•	Other non-interest expense increased $2.0 million, or 3.3 percent, from the third quarter of 2016 and remained consistent with the second quarter of 2017. The increase from the third quarter of 2016 was primarily due to higher professional fees related to strategic investments in technology capabilities, partially offset by a decrease in impairment charges on interest-only strips.


•	Operating lease depreciation increased $5.7 million, or 56.4 percent, from the third quarter of 2016 and increased $3.2 million, or 25.9 percent, from the second quarter of 2017. The increases from both periods were due to increases in leasing and equipment finance operating lease revenue related to the acquisition of EFLC.

•

Net expenses related to foreclosed real estate and repossessed assets remained consistent with the third quarter of 2016 and decreased $0.8 million, or 17.5 percent, from the second quarter of 2017. The decrease from the second quarter of 2017 was primarily due to higher gains on sale of consumer and commercial properties and lower operating costs associated with maintaining fewer consumer properties, partially offset by higher repossessed assets expense attributable to auto finance.

Income Tax Expense


•	The Company’s effective income tax rate was 32.7 percent for the third quarter of 2017, compared with 34.0 percent for the third quarter of 2016 and 28.9 percent for the second 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.



Capital

Capital Information				Table 7
	At Sep. 30,			At Dec. 31,
(Dollars in thousands, except per-share data)	2017			2016
Total equity	$	2,596,514		$	2,444,645
Book value per common share	13.45			12.66
Tangible book value per common share⁽¹⁾	11.99			11.33
Common equity to assets	10.04		%	10.09		%
Tangible common equity to tangible assets⁽¹⁾	9.06			9.13
Capital accumulation rate⁽²⁾	7.47			8.59

	At Sep. 30,			At Dec. 31,
Regulatory Capital:	2017⁽³⁾			2016
Common equity Tier 1 capital	$	2,080,729		$	1,970,323
Tier 1 capital	2,362,926			2,248,221
Total capital	2,734,260			2,635,925

Regulatory Capital Ratios:
Common equity Tier 1 capital ratio	10.05		%	10.24		%
Tier 1 risk-based capital ratio	11.41			11.68
Total risk-based capital ratio	13.21			13.69
Tier 1 leverage ratio	10.88			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 3Q 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 September 14, 2017, TCF completed the public offering of 7,000,000 depositary shares, each representing a 1/1000^th ownership interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock (the "Series C Preferred Stock"), par value $0.01 per share. Net proceeds of the offering to TCF, after deducting deferred stock issuance costs of $5.6 million, were $169.4 million.

•

On September 15, 2017, TCF provided notice of its intent to redeem all outstanding shares of its Series A Non-Cumulative Perpetual Preferred Stock (the "Series A Preferred Stock") and the related depositary shares during the fourth quarter of 2017. As a result, TCF reclassified the outstanding liquidation preference amount of the Series A Preferred Stock totaling $172.5 million from preferred stock to accrued expenses and other liabilities on the Consolidated Statement of Financial Condition because upon the notification date, the Series A Preferred Stock became mandatorily redeemable. The liquidation preference amount equals the redemption price for all outstanding shares of the Series A Preferred Stock. Deferred stock issuance costs of $5.8 million originally recorded as a reduction to preferred stock upon the issuance of the Series A Preferred Stock were reclassified to retained earnings and resulted in a non-cash, one-time reduction to net income available to common stockholders utilized in the computation of earnings per common share and diluted earnings per common share. In addition, dividends of $1.6 million on the Series A Preferred Stock were accrued through October 15, 2017. These two items lowered earnings per common share and diluted earnings per common share by 4 cents per share for the third quarter and first nine months of 2017. Effective October 16, 2017, TCF redeemed all outstanding shares of its Series A Preferred Stock and the related depositary shares using the net proceeds from the offering of its Series C Preferred Stock and additional cash on hand.

•

On October 18, 2017, TCF's Board of Directors declared a regular quarterly cash dividend of 7.5 cents per common share, payable on December 1, 2017, to stockholders of record at the close of business on November 15, 2017. TCF also declared dividends on the 6.45% Series B and 5.70% Series C Non-Cumulative Perpetual Preferred Stock, both payable on December 1, 2017, to stockholders of record at the close of business on November 15, 2017.

Other Matters

As previously announced, the United States District Court for the District of Minnesota (the "Court") granted TCF National Bank's motion to dismiss the Consumer Financial Protection Bureau’s ("CFPB") Regulation E claims. In addition, the Court dismissed the CFPB’s unfair, deceptive and abusive conduct claims under the Consumer Financial Protection Act ("CFPA") for periods prior to July 21, 2011. The Court did not grant TCF National Bank's motion to dismiss CFPA claims for periods after July 21, 2011.

Webcast Information

A live webcast of TCF's conference call to discuss the third quarter earnings will be hosted at TCF's website, http://ir.tcfbank.com, on October 27, 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 September 30, 2017, TCF had $23.0 billion in total assets and 321 bank branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona and South Dakota providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing, 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; the effects of man-made and natural disasters, including fires, floods, tornadoes, hurricanes, acts of terrorism, civil disturbances and environmental damage, which may negatively affect our operations and/or our customers.

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, restrictions on arbitration, 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)

	Quarter Ended September 30,					Change
	2017		2016			$			%
Interest income:
Loans and leases	$	243,973	$	210,765		$	33,208		15.8	%
Securities available for sale	8,486		7,126			1,360			19.1
Securities held to maturity	1,073		1,049			24			2.3
Loans held for sale and other	4,073		13,786			(9,713		)	(70.5	)
Total interest income	257,605		232,726			24,879			10.7
Interest expense:
Deposits	17,015		15,851			1,164			7.3
Borrowings	6,487		4,857			1,630			33.6
Total interest expense	23,502		20,708			2,794			13.5
Net interest income	234,103		212,018			22,085			10.4
Provision for credit losses	14,545		13,894			651			4.7
Net interest income after provision for credit losses	219,558		198,124			21,434			10.8
Non-interest income:
Fees and service charges	34,605		35,093			(488		)	(1.4	)
Card revenue	14,177		13,747			430			3.1
ATM revenue	5,234		5,330			(96		)	(1.8	)
Subtotal	54,016		54,170			(154		)	(0.3	)
Gains on sales of auto loans, net	—		11,624			(11,624		)	(100.0	)
Gains on sales of consumer real estate loans, net	8,049		13,528			(5,479		)	(40.5	)
Servicing fee income	9,966		10,393			(427		)	(4.1	)
Subtotal	18,015		35,545			(17,530		)	(49.3	)
Leasing and equipment finance	34,080		28,289			5,791			20.5
Other	2,930		2,270			660			29.1
Fees and other revenue	109,041		120,274			(11,233		)	(9.3	)
Gains (losses) on securities, net	189		(600		)	789			N.M.
Total non-interest income	109,230		119,674			(10,444		)	(8.7	)
Non-interest expense:
Compensation and employee benefits	115,127		117,155			(2,028		)	(1.7	)
Occupancy and equipment	38,766		37,938			828			2.2
Other	61,408		59,421			1,987			3.3
Subtotal	215,301		214,514			787			0.4
Operating lease depreciation	15,696		10,038			5,658			56.4
Foreclosed real estate and repossessed assets, net	3,829		4,243			(414		)	(9.8	)
Other credit costs, net	209		83			126			151.8
Total non-interest expense	235,035		228,878			6,157			2.7
Income before income tax expense	93,753		88,920			4,833			5.4
Income tax expense	30,704		30,257			447			1.5
Income after income tax expense	63,049		58,663			4,386			7.5
Income attributable to non-controlling interest	2,521		2,371			150			6.3
Net income attributable to TCF Financial Corporation	60,528		56,292			4,236			7.5
Preferred stock dividends	6,464		4,847			1,617			33.4
Impact of notice to redeem preferred stock	5,779		—			5,779			N.M.
Net income available to common stockholders	$	48,285	$	51,445		$	(3,160	)	(6.1	)

Earnings per common share:
Basic	$	0.29	$	0.31		$	(0.02	)	(6.5	)%
Diluted	0.29		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	168,971		167,366			1,605			1.0	%
Diluted	169,240		167,968			1,272			0.8

N.M. Not Meaningful.



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

	Nine Months Ended September 30,					Change
	2017		2016			$			%
Interest income:
Loans and leases	$	697,613	$	639,698		$	57,915		9.1	%
Securities available for sale	24,518		19,020			5,498			28.9
Securities held to maturity	3,388		3,484			(96		)	(2.8	)
Loans held for sale and other	22,910		36,870			(13,960		)	(37.9	)
Total interest income	748,429		699,072			49,357			7.1
Interest expense:
Deposits	45,166		46,735			(1,569		)	(3.4	)
Borrowings	19,885		15,677			4,208			26.8
Total interest expense	65,051		62,412			2,639			4.2
Net interest income	683,378		636,660			46,718			7.3
Provision for credit losses	46,184		45,986			198			0.4
Net interest income after provision for credit losses	637,194		590,674			46,520			7.9
Non-interest income:
Fees and service charges	98,620		102,532			(3,912		)	(3.8	)
Card revenue	41,481		41,193			288			0.7
ATM revenue	14,970		15,639			(669		)	(4.3	)
Subtotal	155,071		159,364			(4,293		)	(2.7	)
Gains on sales of auto loans, net	3,244		33,687			(30,443		)	(90.4	)
Gains on sales of consumer real estate loans, net	25,920		33,751			(7,831		)	(23.2	)
Servicing fee income	32,347		28,778			3,569			12.4
Subtotal	61,511		96,216			(34,705		)	(36.1	)
Leasing and equipment finance	102,208		87,850			14,358			16.3
Other	8,428		7,518			910			12.1
Fees and other revenue	327,218		350,948			(23,730		)	(6.8	)
Gains (losses) on securities, net	189		(716		)	905			N.M.
Total non-interest income	327,407		350,232			(22,825		)	(6.5	)
Non-interest expense:
Compensation and employee benefits	355,522		359,721			(4,199		)	(1.2	)
Occupancy and equipment	117,331		111,830			5,501			4.9
Other	186,520		172,185			14,335			8.3
Subtotal	659,373		643,736			15,637			2.4
Operating lease depreciation	39,404		29,453			9,951			33.8
Foreclosed real estate and repossessed assets, net	13,017		11,298			1,719			15.2
Other credit costs, net	334		41			293			N.M.
Total non-interest expense	712,128		684,528			27,600			4.0
Income before income tax expense	252,473		256,378			(3,905		)	(1.5	)
Income tax expense	77,341		86,766			(9,425		)	(10.9	)
Income after income tax expense	175,132		169,612			5,520			3.3
Income attributable to non-controlling interest	7,894		7,580			314			4.1
Net income attributable to TCF Financial Corporation	167,238		162,032			5,206			3.2
Preferred stock dividends	16,158		14,541			1,617			11.1
Impact of notice to redeem preferred stock	5,779		—			5,779			N.M.
Net income available to common stockholders	$	145,301	$	147,491		$	(2,190	)	(1.5	)

Earnings per common share:
Basic	$	0.86	$	0.88		$	(0.02	)	(2.3	)%
Diluted	0.86		0.88			(0.02		)	(2.3	)

Dividends declared per common share	$	0.225	$	0.225		$	—		—	%

Average common and common equivalent shares
outstanding (in thousands):
Basic	168,493		167,155			1,338			0.8	%
Diluted	168,823		167,708			1,115			0.7

N.M. Not Meaningful.



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

	Quarter Ended September 30,						Change
	2017			2016			$			%
Net income attributable to TCF Financial Corporation	$	60,528		$	56,292		$	4,236		7.5	%
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities available for sale and interest-only strips	2,445			(4,464		)	6,909			N.M.
Net unrealized gains (losses) on net investment hedges	(1,682		)	561			(2,243		)	N.M.
Foreign currency translation adjustment	2,939			(957		)	3,896			N.M.
Recognized postretirement prior service cost	(8		)	(8		)	—			—
Total other comprehensive income (loss), net of tax	3,694			(4,868		)	8,562			N.M.
Comprehensive income	$	64,222		$	51,424		$	12,798		24.9

	Nine Months Ended September 30,						Change
	2017			2016			$			%
Net income attributable to TCF Financial Corporation	$	167,238		$	162,032		$	5,206		3.2	%
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities available for sale and interest-only strips	17,555			21,141			(3,586		)	(17.0	)
Net unrealized gains (losses) on net investment hedges	(3,144		)	(1,669		)	(1,475		)	(88.4	)
Foreign currency translation adjustment	5,527			2,791			2,736			98.0
Recognized postretirement prior service cost	(22		)	(22		)	—			—
Total other comprehensive income (loss), net of tax	19,916			22,241			(2,325		)	(10.5	)
Comprehensive income	$	187,154		$	184,273		$	2,881		1.6

N.M. Not Meaningful.



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

	At Sep. 30,			At Dec. 31,			Change
	2017			2016			$			%
ASSETS:
Cash and due from banks	$	711,734		$	609,603		$	102,131		16.8	%
Investments	87,690			74,714			12,976			17.4
Securities held to maturity	165,315			181,314			(15,999		)	(8.8	)
Securities available for sale	1,598,163			1,423,435			174,728			12.3
Loans and leases held for sale	254,903			268,832			(13,929		)	(5.2	)
Loans and leases:
Consumer real estate:
First mortgage lien	1,953,199			2,292,596			(339,397		)	(14.8	)
Junior lien	2,977,613			2,791,756			185,857			6.7
Total consumer real estate	4,930,812			5,084,352			(153,540		)	(3.0	)
Commercial	3,489,680			3,286,478			203,202			6.2
Leasing and equipment finance	4,730,931			4,336,310			394,621			9.1
Inventory finance	2,576,077			2,470,175			105,902			4.3
Auto finance	3,240,413			2,647,741			592,672			22.4
Other	20,439			18,771			1,668			8.9
Total loans and leases	18,988,352			17,843,827			1,144,525			6.4
Allowance for loan and lease losses	(168,244		)	(160,269		)	(7,975		)	(5.0	)
Net loans and leases	18,820,108			17,683,558			1,136,550			6.4
Premises and equipment, net	425,112			418,372			6,740			1.6
Goodwill	227,798			225,640			2,158			1.0
Other assets	714,215			555,858			158,357			28.5
Total assets	$	23,005,038		$	21,441,326		$	1,563,712		7.3

LIABILITIES AND EQUITY:
Deposits:
Checking	$	6,197,608		$	6,009,151		$	188,457		3.1	%
Savings	4,972,529			4,719,481			253,048			5.4
Money market	1,965,291			2,421,467			(456,176		)	(18.8	)
Certificates of deposit	4,972,058			4,092,423			879,635			21.5
Total deposits	18,107,486			17,242,522			864,964			5.0
Short-term borrowings	—			4,391			(4,391		)	(100.0	)
Long-term borrowings	1,382,588			1,073,181			309,407			28.8
Total borrowings	1,382,588			1,077,572			305,016			28.3
Accrued expenses and other liabilities	918,450			676,587			241,863			35.7
Total liabilities	20,408,524			18,996,681			1,411,843			7.4
Equity:
Preferred stock, par value $0.01 per share, 30,000,000 shares authorized;
4,007,000 and 4,006,900 shares issued, respectively	265,967			263,240			2,727			1.0
Common stock, par value $0.01 per share, 280,000,000 shares authorized;
171,876,492 and 171,034,506 shares issued, respectively	1,719			1,710			9			0.5
Additional paid-in capital	864,632			862,776			1,856			0.2
Retained earnings, subject to certain restrictions	1,488,966			1,382,901			106,065			7.7
Accumulated other comprehensive income (loss)	(13,809		)	(33,725		)	19,916			59.1
Treasury stock at cost, 42,566 shares, and other	(30,867		)	(49,419		)	18,552			37.5
Total TCF Financial Corporation stockholders' equity	2,576,608			2,427,483			149,125			6.1
Non-controlling interest in subsidiaries	19,906			17,162			2,744			16.0
Total equity	2,596,514			2,444,645			151,869			6.2
Total liabilities and equity	$	23,005,038		$	21,441,326		$	1,563,712		7.3



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
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,			Sep. 30,
	2017		2017		2017		2016		2016		2017			2016
Consumer real estate:
First mortgage lien	0.32	%	0.31	%	0.28	%	0.40	%	0.36	%	1		bps	(4	)	bps
Junior lien	0.05		0.05		0.05		0.05		0.03		—			2
Total consumer real estate	0.15		0.16		0.15		0.21		0.18		(1	)		(3	)
Commercial	—		—		—		—		0.01		—			(1	)
Leasing and equipment finance	0.15		0.14		0.12		0.10		0.14		1			1
Inventory finance	0.01		0.01		—		—		0.01		—			—
Auto finance	0.25		0.20		0.13		0.23		0.20		5			5
Other	0.07		0.30		0.05		0.10		0.05		(23	)		2
Subtotal	0.12		0.11		0.09		0.12		0.12		1			—
Portfolios acquired with deteriorated credit quality	9.42		—		—		—		3.06		942			636
Total delinquencies	0.13		0.11		0.09		0.12		0.12		2			1


(1)	Excludes non-accrual loans and leases.



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

	Quarter Ended⁽¹⁾										Change from
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,			Sep. 30,
	2017		2017		2017		2016		2016		2017			2016
Consumer real estate:
First mortgage lien	(0.16	)%	0.15	%	(0.18	)%	0.26	%	0.34	%	(31	)	bps	(50	)	bps
Junior lien	(0.38	)	0.05		(0.89	)	0.08		0.04		(43	)		(42	)
Total consumer real estate	(0.29	)	0.09		(0.58	)	0.17		0.17		(38	)		(46	)
Commercial	(0.02	)	0.29		0.32		0.01		(0.01	)	(31	)		(1	)
Leasing and equipment finance	0.10		0.14		0.13		0.10		0.18		(4	)		(8	)
Inventory finance	0.08		0.09		0.01		0.07		0.10		(1	)		(2	)
Auto finance	1.13		0.83		1.12		1.09		0.86		30			27
Other	N.M.		N.M.		N.M.		N.M.		N.M.		N.M.			N.M.
Total	0.18		0.28		0.11		0.27		0.26		(10	)		(8	)

N.M. Not Meaningful.


(1)	Annualized.



Non-Accrual Loans and Leases Rollforward

	Quarter Ended															Change from
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Sep. 30,
	2017			2017			2017			2016			2016			2017			2016
Balance, beginning of period	$	129,273		$	138,981		$	181,445		$	190,047		$	195,542		$	(9,708	)	$	(66,269	)
Additions	39,094			23,667			34,661			32,398			28,697			15,427			10,397
Charge-offs	(3,916		)	(6,819		)	(6,412		)	(4,158		)	(5,670		)	2,903			1,754
Transfers to other assets	(7,308		)	(10,870		)	(8,786		)	(17,118		)	(11,687		)	3,562			4,379
Return to accrual status	(3,559		)	(3,077		)	(2,591		)	(4,546		)	(5,447		)	(482		)	1,888
Payments received	(7,993		)	(11,647		)	(10,732		)	(14,351		)	(13,845		)	3,654			5,852
Sales	(25,924		)	(892		)	(49,916		)	(2,764		)	—			(25,032		)	(25,924		)
Other, net	(48		)	(70		)	1,312			1,937			2,457			22			(2,505		)
Balance, end of period	$	119,619		$	129,273		$	138,981		$	181,445		$	190,047		$	(9,654	)	$	(70,428	)



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

Other Real Estate Owned Rollforward

	Quarter Ended															Change from
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Sep. 30,
	2017			2017			2017			2016			2016			2017			2016
Balance, beginning of period	$	28,727		$	31,959		$	46,797		$	33,712		$	36,792		$	(3,232	)	$	(8,065	)
Transferred in	5,685			8,638			7,212			13,865			10,124			(2,953		)	(4,439		)
Sales	(9,204		)	(11,243		)	(14,982		)	(8,655		)	(12,997		)	2,039			3,793
Writedowns	(1,345		)	(1,674		)	(1,538		)	(1,281		)	(1,984		)	329			639
Other, net⁽¹⁾	2,542			1,047			(5,530		)	9,156			1,777			1,495			765
Balance, end of period	$	26,405		$	28,727		$	31,959		$	46,797		$	33,712		$	(2,322	)	$	(7,307	)


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



Allowance for Loan and Lease Losses

	At					At					At					At					At
	Sep. 30,					Jun. 30,					Mar. 31,					Dec. 31,					Sep. 30,
	2017					2017					2017					2016					2016
				% of					% of					% of					% of				% of
	Balance		Portfolio			Balance		Portfolio			Balance		Portfolio			Balance		Portfolio			Balance		Portfolio
Consumer real estate	$	47,838		0.97	%	$	52,408		1.10	%	$	53,851		1.16	%	$	59,448		1.17	%	$	62,092	1.24	%
Commercial	36,344			1.04		34,669			0.99		33,697			1.00		32,695			0.99		31,648		1.00
Leasing and equipment finance	22,771			0.48		21,922			0.51		21,257			0.50		21,350			0.49		20,649		0.49
Inventory finance	11,978			0.46		12,129			0.48		15,816			0.55		13,932			0.56		11,807		0.52
Auto finance	48,660			1.50		43,893			1.35		35,108			1.26		32,310			1.22		29,115		1.07
Other	653			3.19		599			3.08		437			2.60		534			2.84		530		2.96
Total	$	168,244		0.89		$	165,620		0.90		$	160,166		0.89		$	160,269		0.90		$	155,841	0.90



Changes in Allowance for Loan and Lease Losses

	Quarter Ended															Change from
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Sep. 30,
	2017			2017			2017			2016			2016			2017			2016
Balance, beginning of period	$	165,620		$	160,166		$	160,269		$	155,841		$	158,572		$	5,454		$	7,048
Charge-offs	(17,999		)	(18,326		)	(18,902		)	(16,451		)	(16,244		)	327			(1,755		)
Recoveries	9,847			5,412			13,813			4,718			4,779			4,435			5,068
Net (charge-offs) recoveries	(8,152		)	(12,914		)	(5,089		)	(11,733		)	(11,465		)	4,762			3,313
Provision for credit losses	14,545			19,446			12,193			19,888			13,894			(4,901		)	651
Other	(3,769		)	(1,078		)	(7,207		)	(3,727		)	(5,160		)	(2,691		)	1,391
Balance, end of period	$	168,244		$	165,620		$	160,166		$	160,269		$	155,841		$	2,624		$	12,403



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

	Quarter Ended September 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	$	279,839	$	2,679	3.80	%	$	331,107	$	2,380	2.86	%
Securities held to maturity	166,883		1,073		2.57		187,414		1,049		2.24
Securities available for sale:⁽³⁾
Taxable	825,192		4,619		2.24		747,890		4,167		2.23
Tax-exempt⁽⁴⁾	737,859		5,949		3.22		570,013		4,553		3.19
Loans and leases held for sale	96,143		1,394		5.75		558,649		11,406		8.12
Loans and leases:⁽⁵⁾
Consumer real estate:
Fixed-rate	1,872,607		26,490		5.61		2,216,945		32,041		5.75
Variable- and adjustable-rate	2,964,493		44,160		5.91		2,918,631		38,796		5.29
Total consumer real estate	4,837,100		70,650		5.80		5,135,576		70,837		5.49
Commercial:
Fixed-rate	980,262		11,411		4.62		944,347		11,675		4.92
Variable- and adjustable-rate	2,493,163		29,915		4.76		2,147,768		21,121		3.91
Total commercial	3,473,425		41,326		4.72		3,092,115		32,796		4.22
Leasing and equipment finance	4,316,434		48,874		4.53		4,147,488		46,422		4.48
Inventory finance	2,479,416		41,922		6.71		2,272,409		34,665		6.07
Auto finance	3,280,612		42,785		5.17		2,670,272		27,251		4.06
Other	11,567		146		5.03		9,252		136		5.85
Total loans and leases	18,398,554		245,703		5.31		17,327,112		212,107		4.88
Total interest-earning assets	20,504,470		261,417		5.07		19,722,185		235,662		4.76
Other assets⁽⁶⁾	1,434,957						1,303,670
Total assets	$	21,939,427					$	21,025,855
LIABILITIES AND EQUITY:
Non-interest bearing deposits:
Retail	$	1,940,797					$	1,771,840
Small business	937,847						894,761
Commercial and custodial	642,400						583,430
Total non-interest bearing deposits	3,521,044						3,250,031
Interest-bearing deposits:
Checking	2,539,211		99		0.02		2,434,934		88		0.01
Savings	4,846,090		932		0.08		4,661,565		399		0.03
Money market	2,106,814		2,478		0.47		2,496,590		3,823		0.61
Certificates of deposit	4,636,007		13,506		1.16		4,304,990		11,541		1.07
Total interest-bearing deposits	14,128,122		17,015		0.48		13,898,079		15,851		0.45
Total deposits	17,649,166		17,015		0.38		17,148,110		15,851		0.37
Borrowings:
Short-term borrowings	6,448		21		1.33		8,485		19		0.86
Long-term borrowings	983,004		6,466		2.62		729,737		4,838		2.65
Total borrowings	989,452		6,487		2.62		738,222		4,857		2.63
Total interest-bearing liabilities	15,117,574		23,502		0.62		14,636,301		20,708		0.56
Total deposits and borrowings	18,638,618		23,502		0.50		17,886,332		20,708		0.46
Other liabilities	723,792						708,048
Total liabilities	19,362,410						18,594,380
Total TCF Financial Corp. stockholders' equity	2,554,667						2,409,312
Non-controlling interest in subsidiaries	22,350						22,163
Total equity	2,577,017						2,431,475
Total liabilities and equity	$	21,939,427					$	21,025,855
Net interest income and margin			$	237,915	4.61				$	214,954	4.34


(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 $249.0 million and $138.2 million for the third quarters of 2017 and 2016, respectively.



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

	Nine Months Ended September 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	$	275,278	$	8,142	3.95	%	$	334,210	$	6,992	2.79	%
Securities held to maturity	172,341		3,388		2.62		193,780		3,484		2.40
Securities available for sale:⁽³⁾
Taxable	820,968		13,707		2.23		695,721		11,838		2.27
Tax-exempt⁽⁴⁾	689,807		16,632		3.21		457,308		11,049		3.22
Loans and leases held for sale	240,753		14,768		8.20		475,017		29,878		8.40
Loans and leases:⁽⁵⁾
Consumer real estate:
Fixed-rate	1,972,528		83,456		5.66		2,324,648		100,386		5.77
Variable- and adjustable-rate	2,897,509		124,381		5.74		2,959,168		117,625		5.31
Total consumer real estate	4,870,037		207,837		5.71		5,283,816		218,011		5.51
Commercial:
Fixed-rate	982,414		34,250		4.66		979,913		36,233		4.94
Variable- and adjustable-rate	2,415,999		81,504		4.51		2,140,039		63,601		3.97
Total commercial	3,398,413		115,754		4.55		3,119,952		99,834		4.27
Leasing and equipment finance	4,293,364		144,786		4.50		4,057,755		135,900		4.47
Inventory finance	2,632,385		123,633		6.28		2,422,979		105,633		5.82
Auto finance	3,050,555		109,865		4.82		2,708,470		83,748		4.13
Other	10,520		414		5.27		9,617		413		5.75
Total loans and leases	18,255,274		702,289		5.14		17,602,589		643,539		4.88
Total interest-earning assets	20,454,421		758,926		4.96		19,758,625		706,780		4.78
Other assets⁽⁶⁾	1,338,670						1,295,913
Total assets	$	21,793,091					$	21,054,538
LIABILITIES AND EQUITY:
Non-interest bearing deposits:
Retail	$	1,929,767					$	1,780,397
Small business	910,185						870,024
Commercial and custodial	625,789						575,513
Total non-interest bearing deposits	3,465,741						3,225,934
Interest-bearing deposits:
Checking	2,541,384		265		0.01		2,451,330		261		0.01
Savings	4,803,310		1,971		0.05		4,679,737		1,081		0.03
Money market	2,236,972		7,897		0.47		2,509,033		11,663		0.62
Certificates of deposit	4,314,088		35,033		1.09		4,239,676		33,730		1.06
Total interest-bearing deposits	13,895,754		45,166		0.43		13,879,776		46,735		0.45
Total deposits	17,361,495		45,166		0.35		17,105,710		46,735		0.36
Borrowings:
Short-term borrowings	5,776		41		0.95		7,718		42		0.72
Long-term borrowings	1,220,615		19,844		2.17		877,123		15,635		2.38
Total borrowings	1,226,391		19,885		2.16		884,841		15,677		2.36
Total interest-bearing liabilities	15,122,145		65,051		0.57		14,764,617		62,412		0.56
Total deposits and borrowings	18,587,886		65,051		0.47		17,990,551		62,412		0.46
Other liabilities	687,826						683,198
Total liabilities	19,275,712						18,673,749
Total TCF Financial Corp. stockholders' equity	2,494,152						2,358,387
Non-controlling interest in subsidiaries	23,227						22,402
Total equity	2,517,379						2,380,789
Total liabilities and equity	$	21,793,091					$	21,054,538
Net interest income and margin			$	693,875	4.53				$	644,368	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 $210.2 million and $134.6 million for the nine months ended September 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)

	Quarter Ended
	Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
	2017			2017			2017			2016			2016
Interest income:
Loans and leases	$	243,973		$	234,092		$	219,548		$	210,848		$	210,765
Securities available for sale	8,486			8,052			7,980			7,553			7,126
Securities held to maturity	1,073			1,035			1,280			1,165			1,049
Loans held for sale and other	4,073			5,338			13,499			12,092			13,786
Total interest income	257,605			248,517			242,307			231,658			232,726
Interest expense:
Deposits	17,015			14,436			13,715			15,053			15,851
Borrowings	6,487			6,920			6,478			5,159			4,857
Total interest expense	23,502			21,356			20,193			20,212			20,708
Net interest income	234,103			227,161			222,114			211,446			212,018
Provision for credit losses	14,545			19,446			12,193			19,888			13,894
Net interest income after provision for credit losses	219,558			207,715			209,921			191,558			198,124
Non-interest income:
Fees and service charges	34,605			32,733			31,282			35,132			35,093
Card revenue	14,177			14,154			13,150			13,689			13,747
ATM revenue	5,234			5,061			4,675			4,806			5,330
Subtotal	54,016			51,948			49,107			53,627			54,170
Gains on sales of auto loans, net	—			380			2,864			1,145			11,624
Gains on sales of consumer real estate loans, net	8,049			8,980			8,891			16,676			13,528
Servicing fee income	9,966			10,730			11,651			11,404			10,393
Subtotal	18,015			20,090			23,406			29,225			35,545
Leasing and equipment finance	34,080			39,830			28,298			31,316			28,289
Other	2,930			2,795			2,703			1,365			2,270
Fees and other revenue	109,041			114,663			103,514			115,533			120,274
Gains (losses) on securities, net	189			—			—			135			(600		)
Total non-interest income	109,230			114,663			103,514			115,668			119,674
Non-interest expense:
Compensation and employee benefits	115,127			115,918			124,477			115,001			117,155
Occupancy and equipment	38,766			38,965			39,600			38,150			37,938
Other	61,408			61,075			64,037			59,235			59,421
Subtotal	215,301			215,958			228,114			212,386			214,514
Operating lease depreciation	15,696			12,466			11,242			10,906			10,038
Foreclosed real estate and repossessed assets, net	3,829			4,639			4,549			1,889			4,243
Other credit costs, net	209			24			101			178			83
Total non-interest expense	235,035			233,087			244,006			225,359			228,878
Income before income tax expense	93,753			89,291			69,429			81,867			88,920
Income tax expense	30,704			25,794			20,843			29,762			30,257
Income after income tax expense	63,049			63,497			48,586			52,105			58,663
Income attributable to non-controlling interest	2,521			3,065			2,308			2,013			2,371
Net income attributable to TCF Financial Corporation	60,528			60,432			46,278			50,092			56,292
Preferred stock dividends	6,464			4,847			4,847			4,847			4,847
Impact of notice to redeem preferred stock	5,779			—			—			—			—
Net income available to common stockholders	$	48,285		$	55,585		$	41,431		$	45,245		$	51,445

Earnings per common share:
Basic	$	0.29		$	0.33		$	0.25		$	0.27		$	0.31
Diluted	0.29			0.33			0.25			0.27			0.31

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

Financial highlights:⁽¹⁾
Return on average assets	1.15		%	1.17		%	0.90		%	0.99		%	1.12		%
Return on average common equity	8.44			9.96			7.64			8.40			9.59
Net interest margin	4.61			4.52			4.46			4.30			4.34


(1)	Annualized.



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

	Sep. 30, 2017		Jun. 30, 2017		Mar. 31, 2017		Dec. 31, 2016		Sep. 30, 2016
ASSETS:
Investments and other	$	279,839	$	259,548	$	286,519	$	276,018	$	331,107
Securities held to maturity	166,883		172,322		177,939		182,177		187,414
Securities available for sale:⁽¹⁾
Taxable	825,192		821,744		815,867		791,289		747,890
Tax-exempt	737,859		689,667		640,826		610,070		570,013
Loans and leases held for sale	96,143		165,859		464,301		492,457		558,649
Loans and leases:⁽²⁾
Consumer real estate:
Fixed-rate	1,872,607		1,963,822		2,083,472		2,169,493		2,216,945
Variable- and adjustable-rate	2,964,493		2,782,296		2,945,529		2,916,653		2,918,631
Total consumer real estate	4,837,100		4,746,118		5,029,001		5,086,146		5,135,576
Commercial:
Fixed-rate	980,262		966,884		1,000,316		948,856		944,347
Variable- and adjustable-rate	2,493,163		2,450,168		2,302,575		2,198,661		2,147,768
Total commercial	3,473,425		3,417,052		3,302,891		3,147,517		3,092,115
Leasing and equipment finance	4,316,434		4,277,376		4,285,944		4,252,543		4,147,488
Inventory finance	2,479,416		2,723,340		2,696,787		2,389,980		2,272,409
Auto finance	3,280,612		3,149,974		2,714,862		2,647,088		2,670,272
Other	11,567		10,235		9,740		9,307		9,252
Total loans and leases	18,398,554		18,324,095		18,039,225		17,532,581		17,327,112
Total interest-earning assets	20,504,470		20,433,235		20,424,677		19,884,592		19,722,185
Other assets⁽³⁾	1,434,957		1,315,495		1,263,678		1,253,002		1,303,670
Total assets	$	21,939,427	$	21,748,730	$	21,688,355	$	21,137,594	$	21,025,855

LIABILITIES AND EQUITY:
Non-interest-bearing deposits:
Retail	$	1,940,797	$	1,967,542	$	1,880,298	$	1,773,673	$	1,771,840
Small business	937,847		897,391		894,845		926,388		894,761
Commercial and custodial	642,400		608,706		626,081		615,686		583,430
Total non-interest bearing deposits	3,521,044		3,473,639		3,401,224		3,315,747		3,250,031
Interest-bearing deposits:
Checking	2,539,211		2,554,563		2,530,281		2,454,815		2,434,934
Savings	4,846,090		4,806,371		4,756,486		4,670,906		4,661,565
Money market	2,106,814		2,221,807		2,385,353		2,429,239		2,496,590
Certificates of deposit	4,636,007		4,266,488		4,033,143		4,198,190		4,304,990
Total interest-bearing deposits	14,128,122		13,849,229		13,705,263		13,753,150		13,898,079
Total deposits	17,649,166		17,322,868		17,106,487		17,068,897		17,148,110
Borrowings:
Short-term borrowings	6,448		6,230		4,628		5,063		8,485
Long-term borrowings	983,004		1,225,022		1,459,053		931,720		729,737
Total borrowings	989,452		1,231,252		1,463,681		936,783		738,222
Total interest-bearing liabilities	15,117,574		15,080,481		15,168,944		14,689,933		14,636,301
Total deposits and borrowings	18,638,618		18,554,120		18,570,168		18,005,680		17,886,332
Other liabilities	723,792		673,740		665,301		695,778		708,048
Total liabilities	19,362,410		19,227,860		19,235,469		18,701,458		18,594,380
Total TCF Financial Corporation stockholders' equity	2,554,667		2,494,682		2,431,755		2,417,222		2,409,312
Non-controlling interest in subsidiaries	22,350		26,188		21,131		18,914		22,163
Total equity	2,577,017		2,520,870		2,452,886		2,436,136		2,431,475
Total liabilities and equity	$	21,939,427	$	21,748,730	$	21,688,355	$	21,137,594	$	21,025,855


(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 $249.0 million, $200.7 million, $180.3 million, $157.2 million and $138.2 million for the third, second and first quarters of 2017, and for the fourth and third quarters of 2016, respectively.



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

	Sep. 30, 2017		Jun. 30, 2017		Mar. 31, 2017		Dec. 31, 2016		Sep. 30, 2016
ASSETS:
Investments and other	3.80	%	4.20	%	3.88	%	3.35	%	2.86	%
Securities held to maturity	2.57		2.40		2.88		2.56		2.24
Securities available for sale:⁽³⁾
Taxable	2.24		2.16		2.28		2.22		2.23
Tax-exempt⁽⁴⁾	3.22		3.23		3.19		3.18		3.19
Loans and leases held for sale	5.75		6.34		9.39		7.89		8.12
Loans and leases:
Consumer real estate:
Fixed-rate	5.61		5.65		5.70		5.57		5.75
Variable- and adjustable rate	5.91		5.76		5.54		5.36		5.29
Total consumer real estate	5.80		5.72		5.60		5.45		5.49
Commercial:
Fixed-rate	4.62		4.62		4.75		4.70		4.92
Variable- and adjustable-rate	4.76		4.45		4.30		4.05		3.91
Total commercial	4.72		4.50		4.43		4.25		4.22
Leasing and equipment finance	4.53		4.48		4.48		4.43		4.48
Inventory finance	6.71		6.22		5.93		5.80		6.07
Auto finance	5.17		5.01		4.15		4.04		4.06
Other	5.03		5.37		5.44		5.72		5.85
Total loans and leases	5.31		5.15		4.95		4.82		4.88

Total interest-earning assets	5.07		4.94		4.86		4.70		4.76

LIABILITIES:
Interest-bearing deposits:
Checking	0.02		0.01		0.01		0.01		0.01
Savings	0.08		0.04		0.04		0.04		0.03
Money market	0.47		0.45		0.50		0.57		0.61
Certificates of deposit	1.16		1.07		1.02		1.05		1.07
Total interest-bearing deposits	0.48		0.42		0.41		0.44		0.45
Total deposits	0.38		0.33		0.33		0.35		0.37
Borrowings:
Short-term borrowings	1.33		0.79		0.65		0.77		0.86
Long-term borrowings	2.62		2.26		1.78		2.21		2.65
Total borrowings	2.62		2.25		1.78		2.20		2.63

Total interest-bearing liabilities	0.62		0.57		0.54		0.55		0.56

Net interest margin	4.61		4.52		4.46		4.30		4.34


(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 Sep. 30,			At Dec. 31,
		2017			2016
Computation of tangible common equity to tangible assets and tangible book value per common share:
Total equity		$	2,596,514		$	2,444,645
Less: Non-controlling interest in subsidiaries		19,906			17,162
Total TCF Financial Corporation stockholders' equity		2,576,608			2,427,483
Less: Preferred stock		265,967			263,240
Total common stockholders' equity	(a)	2,310,641			2,164,243
Less:
Goodwill		227,798			225,640
Other intangibles		21,874			1,738
Tangible common equity	(b)	$	2,060,969		$	1,936,865

Total assets	(c)	$	23,005,038		$	21,441,326
Less:
Goodwill		227,798			225,640
Other intangibles		21,874			1,738
Tangible assets	(d)	$	22,755,366		$	21,213,948

Common stock shares outstanding	(e)	171,833,926			170,991,940

Common equity to assets	(a) / (c)	10.04		%	10.09		%
Tangible common equity to tangible assets	(b) / (d)	9.06		%	9.13		%

Book value per common share	(a) / (e)	$	13.45		$	12.66
Tangible book value per common share	(b) / (e)	$	11.99		$	11.33



		Quarter Ended									Nine Months Ended
		Sep. 30,			Jun. 30,			Sep. 30,			Sep. 30,			Sep. 30,
		2017			2017			2016			2017			2016
Computation of return on average tangible common equity:
Net income available to common stockholders	(f)	$	48,285		$	55,585		$	51,445		$	145,301		$	147,491
Plus: Other intangibles amortization		806			238			366			1,167			1,098
Less: Income tax expense attributable to other intangibles amortization		277			83			128			401			385
Adjusted net income available to common stockholders	(g)	$	48,814		$	55,740		$	51,683		$	146,067		$	148,204

Average balances:
Total equity		$	2,577,017		$	2,520,870		$	2,431,475		$	2,517,379		$	2,380,789
Less: Non-controlling interest in subsidiaries		22,350			26,188			22,163			23,227			22,402
Total TCF Financial Corporation stockholders' equity		2,554,667			2,494,682			2,409,312			2,494,152			2,358,387
Less: Preferred stock		265,556			263,240			263,240			264,021			263,240
Average total common stockholders' equity	(h)	2,289,111			2,231,442			2,146,072			2,230,131			2,095,147
Less:
Goodwill		227,539			225,876			225,640			226,359			225,640
Other intangibles		22,279			5,045			2,233			9,743			2,597
Average tangible common equity	(i)	$	2,039,293		$	2,000,521		$	1,918,199		$	1,994,029		$	1,866,910

Return on average common equity⁽²⁾	(f) / (h)	8.44		%	9.96		%	9.59		%	8.69		%	9.39		%
Return on average tangible common equity⁽²⁾	(g) / (i)	9.57		%	11.15		%	10.78		%	9.77		%	10.58		%

(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.

###

Attached files

TCF FINANCIAL CORP Reports

Also read