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

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EX-99.3 - EXHIBIT 99.3 - TCF FINANCIAL CORP	tcf123117form8-kexhibit993.htm
EX-99.2 - EXHIBIT 99.2 - TCF FINANCIAL CORP	a4q17earningsreleasepres.htm
8-K - 8-K - TCF FINANCIAL CORP	tcf123117form8-kearningsre.htm

Exhibit 99.1

NEWS RELEASE

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

FOR IMMEDIATE RELEASE



Contact:
Mark Goldman	(952) 475-7050	news@tcfbank.com	(Media)
Jason Korstange	(952) 745-2755	investor@tcfbank.com	(Investors)

TCF REPORTS QUARTERLY NET INCOME OF $101.4 MILLION, OR 57 CENTS PER SHARE

AND ANNUAL NET INCOME OF $268.6 MILLION, OR $1.44 PER SHARE

TCF UTILIZES TAX BENEFITS TO GIVE BACK TO ITS TEAM MEMBERS AND COMMUNITIES,

INVEST IN ITS BUSINESS AND DRIVE SHAREHOLDER VALUE

2018 ANNOUNCEMENTS


–	Announced a 100 percent increase to the quarterly common stock dividend


–	Announced the redemption of the Series B non-cumulative perpetual preferred stock on March 1, 2018

2017 OBSERVATIONS


–	Revenue of $1.4 billion, up 4.5 percent from 2016


–	Net interest margin of 4.54 percent, up 20 basis points from 2016


–	Period-end loans and leases of $19.1 billion, up 7.1 percent from December 31, 2016


–	Non-accrual loans and leases of $118.6 million, down 34.6 percent from December 31, 2016


–	Average deposits of $17.6 billion, up 2.7 percent from 2016


–	Earnings per share of $1.44, up 29 cents from 2016

FOURTH QUARTER OBSERVATIONS


–	Revenue of $362.8 million, up 10.9 percent from the fourth quarter of 2016


–	Net interest income of $241.9 million, up 14.4 percent from the fourth quarter of 2016


–	Net interest margin of 4.57 percent, up 27 basis points from the fourth quarter of 2016


–	Net charge-offs as a percentage of average loans and leases of 0.38 percent, up 11 basis points from the fourth quarter of 2016


–	Average deposits of $18.1 billion, up 6.3 percent from the fourth quarter of 2016


–	Earnings per share of 57 cents, up 30 cents from the fourth quarter of 2016



Summary of Financial Results																				Table 1
										Change
	4Q			3Q			4Q			4Q17 vs		4Q17 vs		YTD			YTD
(Dollars in thousands, except per-share data)	2017			2017			2016			3Q17		4Q16		2017			2016			Change
Net income attributable to TCF	$	101,399		$	60,528		$	50,092		67.5	%	102.4	%	$	268,637		$	212,124		26.6	%
Net interest income	241,860			234,103			211,446			3.3		14.4		925,238			848,106			9.1
Diluted earnings per common share	0.57			0.29			0.27			96.6		111.1		1.44			1.15			25.2

Financial Ratios⁽¹⁾
Return on average assets	1.82		%	1.15		%	0.99		%	67	bps	83	bps	1.26		%	1.05		%	21	bps
Return on average common equity	16.95			8.44			8.40			851		855		10.80			9.13			167
Return on average tangible common equity⁽²⁾	32.87			9.57			9.43			2,330		2,344		15.73			10.29			544
Net interest margin	4.57			4.61			4.30			(4	)	27		4.54			4.34			20
Net charge-offs as a percentage of average loans and leases	0.38			0.18			0.27			20		11		0.24			0.26			(2	)

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

WAYZATA, Minn. (January 30, 2018) - TCF Financial Corporation ("TCF" or the "Company") (NYSE: TCF) today reported net income of $101.4 million for the fourth quarter of 2017, compared with $50.1 million for the fourth quarter of 2016 and $60.5 million for the third quarter of 2017. Diluted earnings per common share was 57 cents for the fourth quarter of 2017 (inclusive of 29 cents per share of items listed below), compared with 27 cents for the fourth quarter of 2016 and 29 cents for the third quarter of 2017 (inclusive of a one-time reduction in net income available to common stockholders of 4 cents per common share related to the redemption of the Series A non-cumulative perpetual preferred stock in the third quarter of 2017). Net income and diluted earnings per common share for the fourth quarter of 2017 were impacted by the following items:


•	Estimated net tax benefit of $130.7 million, or 77 cents per common share, as a result of the enactment of the Tax Cuts and Jobs Act ("Tax Reform") on December 22, 2017,


•	Pre-tax charge of $88.2 million, or 48 cents per common share, related to impairment of goodwill and other intangible assets, severance, other asset impairments and lease termination write-offs associated with the discontinuation of auto finance loan originations effective December 1, 2017 and


•	Pre-tax impact of $13.1 million, or 5 cents per common share, related to additional TCF Foundation contribution, one-time team member bonuses, planned closure of five branches and inventory finance program extension.

"TCF generated positive momentum throughout 2017 that positions us well for continued success in 2018," said Craig R. Dahl, chairman and chief executive officer. "During the year, we successfully improved core earnings trends, reduced our risk profile and executed on our key initiatives. Our success in these areas, combined with the benefits from the recent Tax Reform, enabled us to give back to our team members and communities, invest in our business and drive shareholder value.

"During the fourth quarter, we discontinued auto finance loan originations and began deploying capital into other areas that we believe will provide a better return for our shareholders. We expect this initiative to result in a meaningful earnings improvement in 2018. As part of this decision, we announced a new share repurchase program and began repurchasing shares in the fourth quarter.

"Enactment of Tax Reform in the fourth quarter not only will reduce TCF’s effective tax rate moving forward, but it also created a significant net tax benefit in the quarter. As a result, we were pleased to provide one-time bonuses to eligible team members and make a significant donation to the TCF Foundation that will increase the grants we provide to nonprofit organizations in the communities we serve. Our strong capital position and earnings outlook have also allowed us to announce a 100 percent increase to our quarterly common stock dividend and the redemption of our Series B non-cumulative perpetual preferred stock on March 1, 2018.

"These actions, along with the execution of our business strategy in 2017, put us in a position of strength as we enter 2018. With a continued focus on our four strategic pillars and enhanced capital and earnings positions, we are poised to deliver improved returns for our shareholders."

Revenue



Total Revenue																				Table 2
										Change
(Dollars in thousands)	4Q			3Q			4Q			4Q17 vs		4Q17 vs		YTD			YTD
	2017			2017			2016			3Q17		4Q16		2017			2016				Change
Total interest income	$	270,628		$	257,605		$	231,658		5.1	%	16.8	%	$	1,019,057		$	930,730			9.5	%
Total interest expense	28,768			23,502			20,212			22.4		42.3		93,819			82,624				13.5
Net interest income	241,860			234,103			211,446			3.3		14.4		925,238			848,106				9.1
Non-interest income:
Fees and service charges	33,267			34,605			35,132			(3.9	)	(5.3	)	131,887			137,664				(4.2	)
Card revenue	14,251			14,177			13,689			0.5		4.1		55,732			54,882				1.5
ATM revenue	4,654			5,234			4,806			(11.1	)	(3.2	)	19,624			20,445				(4.0	)
Subtotal	52,172			54,016			53,627			(3.4	)	(2.7	)	207,243			212,991				(2.7	)
Gains on sales of auto loans, net	2,216			—			1,145			N.M.		93.5		5,460			34,832				(84.3	)
Gains on sales of consumer real estate loans, net	11,407			8,049			16,676			41.7		(31.6	)	37,327			50,427				(26.0	)
Servicing fee income	9,000			9,966			11,404			(9.7	)	(21.1	)	41,347			40,182				2.9
Subtotal	22,623			18,015			29,225			25.6		(22.6	)	84,134			125,441				(32.9	)
Leasing and equipment finance	42,831			34,080			31,316			25.7		36.8		145,039			119,166				21.7
Other	3,218			2,930			1,365			9.8		135.8		11,646			8,883				31.1
Fees and other revenue	120,844			109,041			115,533			10.8		4.6		448,062			466,481				(3.9	)
Gains (losses) on securities, net	48			189			135			(74.6	)	(64.4	)	237			(581		)		N.M.
Total non-interest income	120,892			109,230			115,668			10.7		4.5		448,299			465,900				(3.8	)
Total revenue	$	362,752		$	343,333		$	327,114		5.7		10.9		$	1,373,537		$	1,314,006			4.5

Net interest margin⁽¹⁾	4.57		%	4.61		%	4.30		%	(4) bps		27	bps	4.54		%	4.34		%		20	bps
Total non-interest income as a percentage of total revenue	33.3			31.8			35.4			150		(210	)	32.6			35.5				(290	)

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

Net Interest Income

•

Net interest income for the fourth quarter of 2017 increased $30.4 million, or 14.4 percent, from the fourth quarter of 2016 primarily due to an increase in interest income on loans and leases, partially offset by an increase in total interest expense and a decrease in interest income on loans held for sale. Total interest income increased $39.0 million, or 16.8 percent, from the fourth quarter of 2016 primarily due to higher average balances and increased average yields on leasing and equipment finance loans and leases and increased average yields and higher average balances of commercial loans. The increase was also due to increased average yields on auto finance and consumer real estate loans and higher average balances of inventory finance loans. Total interest expense increased $8.6 million, or 42.3 percent, from the fourth 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.

•

Net interest income for the fourth quarter of 2017 increased $7.8 million, or 3.3 percent, from the third 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 $13.0 million, or 5.1 percent, from the third quarter of 2017 primarily due to higher average balances and increased average yields on leasing and equipment finance loans and leases, higher average balances of consumer real estate loans and increased average yields on commercial loans. Total interest expense increased $5.3 million, or 22.4 percent, from the third quarter of 2017 primarily due to increased average rates and higher average balances of certificates of deposit, higher average balances of long-term borrowings and increased average rates on savings accounts.

•

Net interest margin was 4.57 percent for the fourth quarter of 2017, up 27 basis points from the fourth quarter of 2016 and down 4 basis points from the third quarter of 2017. The increase from the fourth quarter of 2016 was due to overall margin expansion on loans and leases, primarily impacted by interest rate increases, partially offset by higher average rates on higher average balances of certificates of deposit. The decrease from the third quarter of 2017 was primarily due to increased rates on higher average balances of certificates of deposits, as well as decreased average yields on inventory finance loans. These decreases were partially offset by higher average balances and increased average yields on leasing and equipment finance loans and leases.

Non-interest Income


•	TCF sold $126.1 million and $516.0 million of auto loans during the fourth quarters of 2017 and 2016, respectively, resulting in net gains in each respective period. TCF sold no auto loans during the third quarter of 2017. The decrease from the fourth quarter of 2016 was due to the strategic shift in auto finance.


•	TCF sold $359.7 million, $520.8 million and $291.0 million of consumer real estate loans during the fourth quarters of 2017 and 2016 and the third quarter of 2017, respectively, resulting in net gains in each respective period.


•	Servicing fee income was $9.0 million on $4.7 billion of average loans and leases serviced for others for the fourth quarter of 2017, compared with $11.4 million on $5.5 billion for the fourth quarter of 2016 and $10.0 million on $5.0 billion for the third 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 fourth quarter of 2017 increased $11.5 million, or 36.8 percent, from the fourth quarter of 2016 and increased $8.8 million, or 25.7 percent, from the third quarter of 2017. The increase from the fourth 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. The increase from the third quarter of 2017 was primarily due to an increase in operating lease revenue driven by increased originations in the fourth quarter of 2017, as well as an increase in sales-type lease revenue due to customer-driven events.

Loans and Leases



Period-End and Average Loans and Leases															Table 3
							Percent Change
	4Q		3Q		4Q		4Q17 vs		4Q17 vs		YTD		YTD		Percent
(Dollars in thousands)	2017		2017		2016		3Q17		4Q16		2017		2016		Change
Period-End:
Consumer real estate:
First mortgage lien	$	1,959,387	$	1,953,199	$	2,292,596	0.3	%	(14.5	)%
Junior lien	2,860,309		2,977,613		2,791,756		(3.9	)	2.5
Total consumer real estate	4,819,696		4,930,812		5,084,352		(2.3	)	(5.2	)
Commercial	3,561,193		3,489,680		3,286,478		2.0		8.4
Leasing and equipment finance	4,761,661		4,730,931		4,336,310		0.6		9.8
Inventory finance	2,739,754		2,576,077		2,470,175		6.4		10.9
Auto finance	3,199,639		3,240,413		2,647,741		(1.3	)	20.8
Other	22,517		20,439		18,771		10.2		20.0
Total	$	19,104,460	$	18,988,352	$	17,843,827	0.6		7.1

Average:
Consumer real estate:
First mortgage lien	$	1,959,067	$	2,016,049	$	2,306,421	(2.8	)%	(15.1	)%	$	2,081,568	$	2,424,013	(14.1	)%
Junior lien	3,013,356		2,821,051		2,779,725		6.8		8.4		2,814,276		2,810,116		0.1
Total consumer real estate	4,972,423		4,837,100		5,086,146		2.8		(2.2	)	4,895,844		5,234,129		(6.5	)
Commercial	3,536,725		3,473,425		3,147,517		1.8		12.4		3,433,276		3,126,881		9.8
Leasing and equipment finance	4,713,015		4,316,434		4,252,543		9.2		10.8		4,399,138		4,106,718		7.1
Inventory finance	2,688,387		2,479,416		2,389,980		8.4		12.5		2,646,500		2,414,684		9.6
Auto finance	3,267,855		3,280,612		2,647,088		(0.4	)	23.5		3,105,326		2,693,041		15.3
Other	13,007		11,567		9,307		12.4		39.8		11,149		9,538		16.9
Total	$	19,191,412	$	18,398,554	$	17,532,581	4.3		9.5		$	18,491,233	$	17,584,991	5.2

•

Period-end loans and leases were $19.1 billion at December 31, 2017, an increase of $1.3 billion, or 7.1 percent, from December 31, 2016 and consistent with loans and leases at September 30, 2017. Average loans and leases were $19.2 billion for the fourth quarter of 2017, an increase of $1.7 billion, or 9.5 percent, from the fourth quarter of 2016 and an increase of $0.8 billion, or 4.3 percent, from the third quarter of 2017.

The increases from December 31, 2016 for period-end loans and leases and average loans and leases were 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, partially offset by a decrease in the consumer real estate portfolio. The increases in the auto finance portfolio were primarily due to the reclassification of loans from held for sale to held for investment during the second quarter of 2017, partially offset by the discontinuation of auto finance loan originations effective December 1, 2017. The increases in the leasing and equipment finance portfolio were primarily attributable to a loan and lease portfolio purchase of $445.5 million on September 29, 2017. The decreases in the consumer real estate portfolio were primarily due to decreases 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 the third quarter of 2017 for average loans and leases was primarily due to increases in the leasing and equipment finance, inventory finance and consumer real estate loan portfolios. The increase in the leasing and equipment finance portfolio is primarily due to the loan and lease portfolio purchase on September 29, 2017. The increase in the inventory finance portfolio is primarily due to seasonality and the expansion of the number of active dealers. The increase in the consumer real estate portfolio is primarily due to an increase in the junior lien portfolio attributable to the purchase of a loan portfolio of $175.4 million on September 27, 2017.

•

Loan and lease originations were $3.9 billion for the fourth quarter of 2017, a decrease of $0.4 billion, or 8.7 percent, from the fourth quarter of 2016 and consistent with the third quarter of 2017. The decrease from the fourth quarter of 2016 was primarily due to decreased originations in auto finance and consumer real estate, partially offset by higher inventory finance and commercial originations.

Credit Quality



Credit Trends																		Table 4
																Change
	4Q			3Q			2Q			1Q			4Q			4Q17 vs		4Q17 vs
(Dollars in thousands)	2017			2017			2017			2017			2016			3Q17		4Q16
Over 60-day delinquencies as a percentage of period-end loans and leases⁽¹⁾	0.12		%	0.13		%	0.11		%	0.09		%	0.12		%	(1) bps		— bps
Net charge-offs as a percentage of average loans and leases^{(2), (3), (4)}	0.38			0.18			0.28			0.11			0.27			20		11
Non-accrual loans and leases and other real estate owned	$	136,807		$	146,024		$	158,000		$	170,940		$	228,242		(6.3	)%	(40.1	)%
Provision for credit losses	22,259			14,545			19,446			12,193			19,888			53.0		11.9

(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 0.12 percent at December 31, 2017, consistent with the rate at December 31, 2016 and down 1 basis point from the September 30, 2017 rate. Delinquencies improved in the consumer real estate portfolio from December 31, 2016, however this improvement was offset by higher delinquencies in the auto finance and leasing and equipment finance portfolios. The decrease from September 30, 2017 was primarily due to improved delinquencies in the consumer real estate portfolio, partially offset by higher delinquencies in the auto finance portfolio.

•

The net charge-off rate was 0.38 percent for the fourth quarter of 2017, up 11 basis points from the fourth quarter of 2016 and up 20 basis points from the third quarter of 2017. The increase from the fourth quarter of 2016 was primarily due to increased net charge-offs in the leasing and equipment finance and auto finance portfolios, partially offset by decreased net charge-offs in the consumer real estate portfolio. The increase from the third quarter of 2017 was primarily due to a $4.6 million recovery of previous charge-offs related to the consumer real estate non-accrual loans that were sold in the third quarter of 2017 and increased net charge-offs in the leasing and equipment finance and auto finance portfolios.

•

Non-accrual loans and leases and other real estate owned were $136.8 million at December 31, 2017, a decrease of $91.4 million, or 40.1 percent, from December 31, 2016 and a decrease of $9.2 million, or 6.3 percent, from September 30, 2017. Non-accrual loans and leases were $118.6 million at December 31, 2017, a decrease of $62.9 million, or 34.6 percent, from December 31, 2016 and a decrease of $1.0 million, or 0.9 percent, from September 30, 2017. The decrease from December 31, 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 September 30, 2017 was primarily due to a decrease in non-accrual loans in the commercial portfolio, partially offset by an increase in non-accrual loans in the consumer real estate portfolio. Other real estate owned was $18.2 million at December 31, 2017, a decrease of $28.6 million, or 61.1 percent, from December 31, 2016 and a decrease of $8.2 million, or 31.0 percent, from September 30, 2017. The decrease from December 31, 2016 was primarily due to sales of consumer real estate properties outpacing additions and sales of commercial real estate properties. The decrease from September 30, 2017 was primarily due to sales of commercial real estate properties and sales of consumer real estate properties outpacing additions.

•

Provision for credit losses was $22.3 million for the fourth quarter of 2017, an increase of $2.4 million, or 11.9 percent, from the fourth quarter of 2016 and an increase of $7.7 million, or 53.0 percent, from the third quarter of 2017. The increase from the fourth quarter of 2016 was primarily due to increased net charge-offs in the leasing and equipment finance portfolio. The increase from the third quarter of 2017 was primarily due to increased reserve requirements and increased net charge-offs in the consumer real estate portfolio mainly driven by the recovery of $4.6 million in the third quarter of 2017 on previous charge-offs related to the consumer real estate non-accrual loans that were sold.

Deposits



Average Deposits																				Table 5
										Change
	4Q			3Q			4Q			4Q17 vs		4Q17 vs		YTD			YTD
(Dollars in thousands)	2017			2017			2016			3Q17		4Q16		2017			2016			Change

Checking	$	6,098,522		$	6,046,372		$	5,759,806		0.9	%	5.9	%	$	6,018,415		$	5,688,690		5.8	%
Savings	5,154,216			4,859,973			4,681,662			6.1		10.1		4,903,505			4,689,543			4.6
Money market	1,854,442			2,106,814			2,429,239			(12.0	)	(23.7	)	2,140,553			2,488,977			(14.0	)
Certificates of deposit	5,032,085			4,636,007			4,198,190			8.5		19.9		4,495,062			4,229,247			6.3
Total average deposits	$	18,139,265		$	17,649,166		$	17,068,897		2.8		6.3		$	17,557,535		$	17,096,457		2.7

Average interest rate on deposits⁽¹⁾	0.46		%	0.38		%	0.35		%	8	bps	11	bps	0.38		%	0.36		%	2	bps

(1) Annualized.


•	Total average deposits for the fourth quarter of 2017 increased $1.1 billion, or 6.3 percent, from the fourth quarter of 2016 and increased $490.1 million, or 2.8 percent, from the third quarter of 2017. The increases from both periods were primarily due to growth in average certificates of deposit, savings balances and checking balances, partially offset by a decrease in money market balances.

•

The average interest rate on deposits for the fourth quarter of 2017 was 0.46 percent, up 11 basis points from the fourth quarter of 2016 and up 8 basis points from the third quarter of 2017. The increases from both periods were primarily due to increased average interest rates resulting from promotions for certificates of deposit and savings accounts. The increase from the fourth quarter of 2016 was partially offset by decreased average interest rates on money market balances.

Non-interest Expense



Non-interest Expense																				Table 6
										Change
	4Q			3Q			4Q			4Q17 vs		4Q17 vs		YTD			YTD
(Dollars in thousands)	2017			2017			2016			3Q17		4Q16		2017			2016			Change

Compensation and employee benefits	$	127,713		$	115,127		$	115,001		10.9	%	11.1	%	$	483,235		$	474,722		1.8	%
Occupancy and equipment	39,578			38,766			38,150			2.1		3.7		156,909			149,980			4.6
Other	158,936			61,408			59,235			158.8		168.3		345,456			231,420			49.3
Subtotal	326,227			215,301			212,386			51.5		53.6		985,600			856,122			15.1
Operating lease depreciation	16,497			15,696			10,906			5.1		51.3		55,901			40,359			38.5
Foreclosed real estate and repossessed assets, net	4,739			3,829			1,889			23.8		150.9		17,756			13,187			34.6
Other credit costs, net	343			209			178			64.1		92.7		677			219			N.M.
Total non-interest expense	$	347,806		$	235,035		$	225,359		48.0		54.3		$	1,059,934		$	909,887		16.5

Efficiency ratio	95.88		%	68.46		%	68.89		%	2,742	bps	2,699	bps	77.17		%	69.25		%	792	bps

N.M. Not Meaningful.

•

Non-interest expense for the fourth quarter of 2017 increased $122.4 million, or 54.3 percent, from the fourth quarter of 2016 and increased $112.8 million, or 48.0 percent, from the third quarter of 2017. The increases from both periods were primarily due to increases in other non-interest expense and compensation and employee benefits. The increase from the fourth quarter of 2016 was also due to increases in operating lease depreciation and foreclosed real estate and repossessed assets expense.


•	Compensation and employee benefits expense increased $12.7 million, or 11.1 percent, from the fourth quarter of 2016 and increased $12.6 million, or 10.9 percent, from the third quarter of 2017. The increases from both periods were primarily due to higher incentive compensation and one-time employee bonuses, partially offset by reduced headcount in auto finance.

•

Other non-interest expense increased $99.7 million, or 168.3 percent, from the fourth quarter of 2016 and increased $97.5 million, or 158.8 percent, from the third quarter of 2017. The increases from both periods were primarily due to charges related to the discontinuation of auto finance loan originations, including goodwill and other intangible assets impairment charges of $73.4 million and severance, asset impairment and lease termination write-offs expenses of $14.8 million, as well as the donation to TCF Foundation of $5.0 million.


•	Operating lease depreciation increased $5.6 million, or 51.3 percent, from the fourth quarter of 2016 primarily due to an increase in leasing and equipment finance operating lease revenue related to the acquisition of EFLC.


•	Net expenses related to foreclosed real estate and repossessed assets increased $2.9 million, or 150.9 percent, from the fourth quarter of 2016 primarily due to lower gains on sales of commercial properties and higher repossessed assets expense attributable to auto finance, partially offset by lower operating expenses primarily due to maintaining fewer consumer real estate properties.

Income Tax Expense (Benefit)

•

The Company’s income tax benefit for the fourth quarter of 2017 was $111.0 million, compared with income tax expense of $29.8 million for the fourth quarter of 2016 and $30.7 million for the third quarter of 2017. The income tax benefit for the fourth quarter of 2017 was impacted by an estimated net tax benefit of $130.7 million primarily resulting from the re-measurement of the Company's estimated net deferred tax liability as a result of the enactment of Tax Reform.

Capital



Capital Information				Table 7
	At Dec. 31,			At Dec. 31,
(Dollars in thousands, except per-share data)	2017			2016
Total equity	$	2,680,584		$	2,444,645
Book value per common share	13.96			12.66
Tangible book value per common share⁽¹⁾	12.92			11.33
Common equity to assets	10.42		%	10.09		%
Tangible common equity to tangible assets⁽¹⁾	9.72			9.13
Capital accumulation rate⁽²⁾	13.81			8.59

	At Dec. 31,			At Dec. 31,
Regulatory Capital:	2017⁽³⁾			2016
Common equity Tier 1 capital	$	2,242,410		$	1,970,323
Tier 1 capital	2,522,178			2,248,221
Total capital	2,889,323			2,635,925

Regulatory Capital Ratios:
Common equity Tier 1 capital ratio	10.79		%	10.24		%
Tier 1 risk-based capital ratio	12.14			11.68
Total risk-based capital ratio	13.90			13.69
Tier 1 leverage ratio	11.12			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 4Q 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 as well as the impact of Tax Reform.


•	TCF repurchased 446,464 shares of its common stock during the fourth quarter of 2017 at an average cost of $20.51 per share under its share repurchase program. TCF has the ability to purchase an additional $140.8 million in aggregate value of shares of TCF's common stock in its stock repurchase program authorized by its Board of Directors on November 27, 2017.


•	Effective October 16, 2017, TCF redeemed all outstanding shares of its Series A non-cumulative perpetual preferred stock and related depositary shares for $172.5 million using cash on hand and the net proceeds from the offering on September 14, 2017 of its Series C non-cumulative perpetual preferred stock and related depositary shares.

•

On January 30, 2018, TCF's Board of Directors declared a regular quarterly cash dividend of 15 cents per common share, an increase of 100.0 percent, payable on March 1, 2018, to stockholders of record at the close of business on February 15, 2018. TCF also declared dividends on the 6.45% Series B and 5.70% Series C non-cumulative perpetual preferred stock, both payable on March 1, 2018, to stockholders of record at the close of business on February 15, 2018.


•	On January 30, 2018, TCF's Board of Directors approved the redemption of all outstanding shares of TCF's 6.45% Series B non-cumulative perpetual preferred stock on March 1, 2018.

Webcast Information

A live webcast of TCF's conference call to discuss the fourth quarter earnings will be hosted at TCF's website, http://ir.tcfbank.com, on January 30, 2018 at 9:00 a.m. CST. A slide presentation for the call will be available on the website prior to the call. Additionally, the webcast will be available for replay on TCF's website after the conference call. The website also includes free access to company news releases, TCF's annual report, investor presentations and SEC filings.

TCF is a Wayzata, Minnesota-based national bank holding company. As of December 31, 2017, TCF had $23.0 billion in total assets and 320 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 and equipment 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 carry out its share repurchase program, pay dividends or 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 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 the impact of the Tax Cuts and Jobs Act tax reform legislation and adoption of federal or state legislation that would increase federal or 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 December 31,					Change
	2017			2016		$			%
Interest income:
Loans and leases	$	256,633		$	210,848	$	45,785		21.7	%
Securities available for sale	8,760			7,553		1,207			16.0
Securities held to maturity	1,048			1,165		(117		)	(10.0	)
Loans held for sale and other	4,187			12,092		(7,905		)	(65.4	)
Total interest income	270,628			231,658		38,970			16.8
Interest expense:
Deposits	20,846			15,053		5,793			38.5
Borrowings	7,922			5,159		2,763			53.6
Total interest expense	28,768			20,212		8,556			42.3
Net interest income	241,860			211,446		30,414			14.4
Provision for credit losses	22,259			19,888		2,371			11.9
Net interest income after provision for credit losses	219,601			191,558		28,043			14.6
Non-interest income:
Fees and service charges	33,267			35,132		(1,865		)	(5.3	)
Card revenue	14,251			13,689		562			4.1
ATM revenue	4,654			4,806		(152		)	(3.2	)
Subtotal	52,172			53,627		(1,455		)	(2.7	)
Gains on sales of auto loans, net	2,216			1,145		1,071			93.5
Gains on sales of consumer real estate loans, net	11,407			16,676		(5,269		)	(31.6	)
Servicing fee income	9,000			11,404		(2,404		)	(21.1	)
Subtotal	22,623			29,225		(6,602		)	(22.6	)
Leasing and equipment finance	42,831			31,316		11,515			36.8
Other	3,218			1,365		1,853			135.8
Fees and other revenue	120,844			115,533		5,311			4.6
Gains (losses) on securities, net	48			135		(87		)	(64.4	)
Total non-interest income	120,892			115,668		5,224			4.5
Non-interest expense:
Compensation and employee benefits	127,713			115,001		12,712			11.1
Occupancy and equipment	39,578			38,150		1,428			3.7
Other	158,936			59,235		99,701			168.3
Subtotal	326,227			212,386		113,841			53.6
Operating lease depreciation	16,497			10,906		5,591			51.3
Foreclosed real estate and repossessed assets, net	4,739			1,889		2,850			150.9
Other credit costs, net	343			178		165			92.7
Total non-interest expense	347,806			225,359		122,447			54.3
Income (loss) before income tax expense (benefit)	(7,313		)	81,867		(89,180		)	N.M.
Income tax expense (benefit)	(110,965		)	29,762		(140,727		)	N.M.
Income after income tax expense (benefit)	103,652			52,105		51,547			98.9
Income attributable to non-controlling interest	2,253			2,013		240			11.9
Net income attributable to TCF Financial Corporation	101,399			50,092		51,307			102.4
Preferred stock dividends	3,746			4,847		(1,101		)	(22.7	)
Net income available to common stockholders	$	97,653		$	45,245	$	52,408		115.8

Earnings per common share:
Basic	$	0.58		$	0.27	$	0.31		114.8	%
Diluted	0.57			0.27		0.30			111.1

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

Average common and common equivalent shares
outstanding (in thousands):
Basic	169,233			167,412		1,821			1.1	%
Diluted	170,069			168,049		2,020			1.2

N.M. Not Meaningful.



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

	Year Ended December 31,						Change
	2017			2016			$			%
Interest income:
Loans and leases	$	954,246		$	850,546		$	103,700		12.2	%
Securities available for sale	33,278			26,573			6,705			25.2
Securities held to maturity	4,436			4,649			(213		)	(4.6	)
Loans held for sale and other	27,097			48,962			(21,865		)	(44.7	)
Total interest income	1,019,057			930,730			88,327			9.5
Interest expense:
Deposits	66,012			61,788			4,224			6.8
Borrowings	27,807			20,836			6,971			33.5
Total interest expense	93,819			82,624			11,195			13.5
Net interest income	925,238			848,106			77,132			9.1
Provision for credit losses	68,443			65,874			2,569			3.9
Net interest income after provision for credit losses	856,795			782,232			74,563			9.5
Non-interest income:
Fees and service charges	131,887			137,664			(5,777		)	(4.2	)
Card revenue	55,732			54,882			850			1.5
ATM revenue	19,624			20,445			(821		)	(4.0	)
Subtotal	207,243			212,991			(5,748		)	(2.7	)
Gains on sales of auto loans, net	5,460			34,832			(29,372		)	(84.3	)
Gains on sales of consumer real estate loans, net	37,327			50,427			(13,100		)	(26.0	)
Servicing fee income	41,347			40,182			1,165			2.9
Subtotal	84,134			125,441			(41,307		)	(32.9	)
Leasing and equipment finance	145,039			119,166			25,873			21.7
Other	11,646			8,883			2,763			31.1
Fees and other revenue	448,062			466,481			(18,419		)	(3.9	)
Gains (losses) on securities, net	237			(581		)	818			N.M.
Total non-interest income	448,299			465,900			(17,601		)	(3.8	)
Non-interest expense:
Compensation and employee benefits	483,235			474,722			8,513			1.8
Occupancy and equipment	156,909			149,980			6,929			4.6
Other	345,456			231,420			114,036			49.3
Subtotal	985,600			856,122			129,478			15.1
Operating lease depreciation	55,901			40,359			15,542			38.5
Foreclosed real estate and repossessed assets, net	17,756			13,187			4,569			34.6
Other credit costs, net	677			219			458			N.M.
Total non-interest expense	1,059,934			909,887			150,047			16.5
Income before income tax expense (benefit)	245,160			338,245			(93,085		)	(27.5	)
Income tax expense (benefit)	(33,624		)	116,528			(150,152		)	N.M.
Income after income tax expense (benefit)	278,784			221,717			57,067			25.7
Income attributable to non-controlling interest	10,147			9,593			554			5.8
Net income attributable to TCF Financial Corporation	268,637			212,124			56,513			26.6
Preferred stock dividends	19,904			19,388			516			2.7
Impact of preferred stock redemption	5,779			—			5,779			N.M.
Net income available to common stockholders	$	242,954		$	192,736		$	50,218		26.1

Earnings per common share:
Basic	$	1.44		$	1.15		$	0.29		25.2	%
Diluted	1.44			1.15			0.29			25.2

Dividends declared per common share	$	0.30		$	0.30		$	—		—	%

Average common and common equivalent shares
outstanding (in thousands):
Basic	168,680			167,220			1,460			0.9	%
Diluted	169,089			167,807			1,282			0.8

N.M. Not Meaningful.



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

	At Dec. 31,			At Dec. 31,			Change
	2017			2016			$			%
ASSETS:
Cash and due from banks	$	621,782		$	609,603		$	12,179		2.0	%
Investments	82,644			74,714			7,930			10.6
Securities held to maturity	161,576			181,314			(19,738		)	(10.9	)
Securities available for sale	1,709,018			1,423,435			285,583			20.1
Loans and leases held for sale	134,862			268,832			(133,970		)	(49.8	)
Loans and leases:
Consumer real estate:
First mortgage lien	1,959,387			2,292,596			(333,209		)	(14.5	)
Junior lien	2,860,309			2,791,756			68,553			2.5
Total consumer real estate	4,819,696			5,084,352			(264,656		)	(5.2	)
Commercial	3,561,193			3,286,478			274,715			8.4
Leasing and equipment finance	4,761,661			4,336,310			425,351			9.8
Inventory finance	2,739,754			2,470,175			269,579			10.9
Auto finance	3,199,639			2,647,741			551,898			20.8
Other	22,517			18,771			3,746			20.0
Total loans and leases	19,104,460			17,843,827			1,260,633			7.1
Allowance for loan and lease losses	(171,041		)	(160,269		)	(10,772		)	(6.7	)
Net loans and leases	18,933,419			17,683,558			1,249,861			7.1
Premises and equipment, net	421,549			418,372			3,177			0.8
Goodwill, net	154,757			225,640			(70,883		)	(31.4	)
Other assets	782,552			555,858			226,694			40.8
Total assets	$	23,002,159		$	21,441,326		$	1,560,833		7.3

LIABILITIES AND EQUITY:
Deposits:
Checking	$	6,300,127		$	6,009,151		$	290,976		4.8	%
Savings	5,287,606			4,719,481			568,125			12.0
Money market	1,764,998			2,421,467			(656,469		)	(27.1	)
Certificates of deposit	4,982,271			4,092,423			889,848			21.7
Total deposits	18,335,002			17,242,522			1,092,480			6.3
Short-term borrowings	—			4,391			(4,391		)	(100.0	)
Long-term borrowings	1,249,449			1,073,181			176,268			16.4
Total borrowings	1,249,449			1,077,572			171,877			16.0
Accrued expenses and other liabilities	737,124			676,587			60,537			8.9
Total liabilities	20,321,575			18,996,681			1,324,894			7.0
Total TCF Financial Corporation stockholders' equity	2,662,757			2,427,483			235,274			9.7
Non-controlling interest in subsidiaries	17,827			17,162			665			3.9
Total equity	2,680,584			2,444,645			235,939			9.7
Total liabilities and equity	$	23,002,159		$	21,441,326		$	1,560,833		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
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,			Dec. 31,
	2017		2017		2017		2017		2016		2017			2016
Consumer real estate:
First mortgage lien	0.25	%	0.32	%	0.31	%	0.28	%	0.40	%	(7	)	bps	(15	)	bps
Junior lien	0.04		0.05		0.05		0.05		0.05		(1	)		(1	)
Total consumer real estate	0.13		0.15		0.16		0.15		0.21		(2	)		(8	)
Commercial	—		—		—		—		—		—			—
Leasing and equipment finance	0.14		0.15		0.14		0.12		0.10		(1	)		4
Inventory finance	0.01		0.01		0.01		—		—		—			1
Auto finance	0.28		0.25		0.20		0.13		0.23		3			5
Other	0.04		0.07		0.30		0.05		0.10		(3	)		(6	)
Subtotal	0.11		0.12		0.11		0.09		0.12		(1	)		(1	)
Portfolios acquired with deteriorated credit quality	13.18		9.42		—		—		—		376			1,318
Total delinquencies	0.12		0.13		0.11		0.09		0.12		(1	)		—


(1)	Excludes non-accrual loans and leases.



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

	Quarter Ended⁽¹⁾										Change from
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,			Dec. 31,
	2017		2017		2017		2017		2016		2017			2016
Consumer real estate:
First mortgage lien	0.18	%	(0.16	)%	0.15	%	(0.18	)%	0.26	%	34		bps	(8	)	bps
Junior lien	(0.03	)	(0.38	)	0.05		(0.89	)	0.08		35			(11	)
Total consumer real estate	0.05		(0.29	)	0.09		(0.58	)	0.17		34			(12	)
Commercial	(0.04	)	(0.02	)	0.29		0.32		0.01		(2	)		(5	)
Leasing and equipment finance	0.41		0.10		0.14		0.13		0.10		31			31
Inventory finance	0.15		0.08		0.09		0.01		0.07		7			8
Auto finance	1.36		1.13		0.83		1.12		1.09		23			27
Other	N.M.		N.M.		N.M.		N.M.		N.M.		N.M.			N.M.
Total	0.38		0.18		0.28		0.11		0.27		20			11

N.M. Not Meaningful.


(1)	Annualized.



Non-Accrual Loans and Leases Rollforward

	Quarter Ended															Change from
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Dec. 31,
	2017			2017			2017			2017			2016			2017			2016
Balance, beginning of period	$	119,619		$	129,273		$	138,981		$	181,445		$	190,047		$	(9,654	)	$	(70,428	)
Additions	32,384			39,094			23,667			34,661			32,398			(6,710		)	(14		)
Charge-offs	(7,636		)	(3,916		)	(6,819		)	(6,412		)	(4,158		)	(3,720		)	(3,478		)
Transfers to other assets	(9,551		)	(7,308		)	(10,870		)	(8,786		)	(17,118		)	(2,243		)	7,567
Return to accrual status	(2,187		)	(3,559		)	(3,077		)	(2,591		)	(4,546		)	1,372			2,359
Payments received	(14,412		)	(7,993		)	(11,647		)	(10,732		)	(14,351		)	(6,419		)	(61		)
Sales	—			(25,924		)	(892		)	(49,916		)	(2,764		)	25,924			2,764
Other, net	365			(48		)	(70		)	1,312			1,937			413			(1,572		)
Balance, end of period	$	118,582		$	119,619		$	129,273		$	138,981		$	181,445		$	(1,037	)	$	(62,863	)



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

Other Real Estate Owned Rollforward

	Quarter Ended															Change from
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Dec. 31,
	2017			2017			2017			2017			2016			2017			2016
Balance, beginning of period	$	26,405		$	28,727		$	31,959		$	46,797		$	33,712		$	(2,322	)	$	(7,307	)
Transferred in	5,638			5,685			8,638			7,212			13,865			(47		)	(8,227		)
Sales	(13,395		)	(9,204		)	(11,243		)	(14,982		)	(8,655		)	(4,191		)	(4,740		)
Writedowns	(1,024		)	(1,345		)	(1,674		)	(1,538		)	(1,281		)	321			257
Other, net⁽¹⁾	601			2,542			1,047			(5,530		)	9,156			(1,941		)	(8,555		)
Balance, end of period	$	18,225		$	26,405		$	28,727		$	31,959		$	46,797		$	(8,180	)	$	(28,572	)


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



Allowance for Loan and Lease Losses

	At					At					At					At					At
	Dec. 31,					Sep. 30,					Jun. 30,					Mar. 31,					Dec. 31,
	2017					2017					2017					2017					2016
				% of					% of					% of					% of				% of
	Balance		Portfolio			Balance		Portfolio			Balance		Portfolio			Balance		Portfolio			Balance		Portfolio
Consumer real estate	$	47,168		0.98	%	$	47,838		0.97	%	$	52,408		1.10	%	$	53,851		1.16	%	$	59,448	1.17	%
Commercial	37,195			1.04		36,344			1.04		34,669			0.99		33,697			1.00		32,695		0.99
Leasing and equipment finance	22,528			0.47		22,771			0.48		21,922			0.51		21,257			0.50		21,350		0.49
Inventory finance	13,233			0.48		11,978			0.46		12,129			0.48		15,816			0.55		13,932		0.56
Auto finance	50,225			1.57		48,660			1.50		43,893			1.35		35,108			1.26		32,310		1.22
Other	692			3.07		653			3.19		599			3.08		437			2.60		534		2.84
Total	$	171,041		0.90		$	168,244		0.89		$	165,620		0.90		$	160,166		0.89		$	160,269	0.90



Changes in Allowance for Loan and Lease Losses

	Quarter Ended															Change from
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Dec. 31,
	2017			2017			2017			2017			2016			2017			2016
Balance, beginning of period	$	168,244		$	165,620		$	160,166		$	160,269		$	155,841		$	2,624		$	12,403
Charge-offs	(23,865		)	(17,999		)	(18,326		)	(18,902		)	(16,451		)	(5,866		)	(7,414		)
Recoveries	5,580			9,847			5,412			13,813			4,718			(4,267		)	862
Net (charge-offs) recoveries	(18,285		)	(8,152		)	(12,914		)	(5,089		)	(11,733		)	(10,133		)	(6,552		)
Provision for credit losses	22,259			14,545			19,446			12,193			19,888			7,714			2,371
Other	(1,177		)	(3,769		)	(1,078		)	(7,207		)	(3,727		)	2,592			2,550
Balance, end of period	$	171,041		$	168,244		$	165,620		$	160,166		$	160,269		$	2,797		$	10,772



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

	Quarter Ended December 31,
	2017						2016
	Average				Yields and		Average				Yields and
	Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾		Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾
ASSETS:
Investments and other	$	303,958	$	2,349	3.07	%	$	276,018	$	2,322	3.35	%
Securities held to maturity	163,080		1,048		2.57		182,177		1,165		2.56
Securities available for sale:⁽³⁾
Taxable	831,113		4,675		2.25		791,289		4,400		2.22
Tax-exempt⁽⁴⁾	779,964		6,284		3.22		610,070		4,851		3.18
Loans and leases held for sale	113,501		1,838		6.43		492,457		9,770		7.89
Loans and leases:⁽⁵⁾
Consumer real estate:
Fixed-rate	1,821,240		25,729		5.61		2,169,493		30,367		5.57
Variable- and adjustable-rate	3,151,183		47,290		5.95		2,916,653		39,294		5.36
Total consumer real estate	4,972,423		73,019		5.83		5,086,146		69,661		5.45
Commercial:
Fixed-rate	963,703		13,337		5.49		948,856		11,212		4.70
Variable- and adjustable-rate	2,573,022		30,382		4.68		2,198,661		22,395		4.05
Total commercial	3,536,725		43,719		4.90		3,147,517		33,607		4.25
Leasing and equipment finance	4,713,015		57,722		4.90		4,252,543		47,129		4.43
Inventory finance	2,688,387		40,753		6.01		2,389,980		34,820		5.80
Auto finance	3,267,855		43,109		5.23		2,647,088		26,903		4.04
Other	13,007		157		4.75		9,307		135		5.72
Total loans and leases	19,191,412		258,479		5.35		17,532,581		212,255		4.82
Total interest-earning assets	21,383,028		274,673		5.11		19,884,592		234,763		4.70
Other assets⁽⁶⁾	1,437,126						1,253,002
Total assets	$	22,820,154					$	21,137,594
LIABILITIES AND EQUITY:
Non-interest bearing deposits:
Retail	$	1,938,053					$	1,773,673
Small business	972,493						926,388
Commercial and custodial	660,300						615,686
Total non-interest bearing deposits	3,570,846						3,315,747
Interest-bearing deposits:
Checking	2,541,475		114		0.02		2,454,815		85		0.01
Savings	5,140,417		2,284		0.18		4,670,906		429		0.04
Money market	1,854,442		2,242		0.48		2,429,239		3,451		0.57
Certificates of deposit	5,032,085		16,206		1.28		4,198,190		11,088		1.05
Total interest-bearing deposits	14,568,419		20,846		0.57		13,753,150		15,053		0.44
Total deposits	18,139,265		20,846		0.46		17,068,897		15,053		0.35
Borrowings:
Short-term borrowings	3,759		17		1.75		5,063		9		0.77
Long-term borrowings	1,295,268		7,905		2.43		931,720		5,150		2.21
Total borrowings	1,299,027		7,922		2.43		936,783		5,159		2.20
Total interest-bearing liabilities	15,867,446		28,768		0.72		14,689,933		20,212		0.55
Total deposits and borrowings	19,438,292		28,768		0.59		18,005,680		20,212		0.45
Accrued expenses and other liabilities	790,850						695,778
Total liabilities	20,229,142						18,701,458
Total TCF Financial Corp. stockholders' equity	2,570,613						2,417,222
Non-controlling interest in subsidiaries	20,399						18,914
Total equity	2,591,012						2,436,136
Total liabilities and equity	$	22,820,154					$	21,137,594
Net interest income and margin			$	245,905	4.57				$	214,551	4.30


(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 $267.8 million and $157.2 million for the fourth quarters of 2017 and 2016, respectively.



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

	Year Ended December 31,
	2017						2016
	Average				Yields and		Average				Yields and
	Balance		Interest⁽¹⁾		Rates⁽¹⁾		Balance		Interest⁽¹⁾		Rates⁽¹⁾
ASSETS:
Investments and other	$	282,507	$	10,491	3.71	%	$	319,582	$	9,314	2.91	%
Securities held to maturity	170,006		4,436		2.61		190,863		4,649		2.44
Securities available for sale:⁽²⁾
Taxable	823,526		18,382		2.23		719,743		16,238		2.26
Tax-exempt⁽³⁾	712,530		22,916		3.22		495,708		15,900		3.21
Loans and leases held for sale	208,678		16,606		7.96		479,401		39,648		8.27
Loans and leases:⁽⁴⁾
Consumer real estate:
Fixed-rate	1,934,395		109,185		5.64		2,285,647		130,753		5.72
Variable- and adjustable-rate	2,961,449		171,671		5.80		2,948,482		156,919		5.32
Total consumer real estate	4,895,844		280,856		5.74		5,234,129		287,672		5.50
Commercial:
Fixed-rate	977,698		47,587		4.87		972,107		47,445		4.88
Variable- and adjustable-rate	2,455,578		111,886		4.56		2,154,774		85,996		3.99
Total commercial	3,433,276		159,473		4.64		3,126,881		133,441		4.27
Leasing and equipment finance	4,399,138		202,508		4.60		4,106,718		183,029		4.46
Inventory finance	2,646,500		164,386		6.21		2,414,684		140,453		5.82
Auto finance	3,105,326		152,974		4.93		2,693,041		110,651		4.11
Other	11,149		571		5.11		9,538		548		5.74
Total loans and leases	18,491,233		960,768		5.20		17,584,991		855,794		4.87
Total interest-earning assets	20,688,480		1,033,599		5.00		19,790,288		941,543		4.76
Other assets⁽⁵⁾	1,363,487						1,285,127
Total assets	$	22,051,967					$	21,075,415
LIABILITIES AND EQUITY:
Non-interest bearing deposits:
Retail	$	1,931,856					$	1,778,707
Small business	925,890						884,192
Commercial and custodial	634,487						585,611
Total non-interest bearing deposits	3,492,233						3,248,510
Interest-bearing deposits:
Checking	2,541,407		379		0.01		2,452,206		346		0.01
Savings	4,888,280		4,255		0.09		4,677,517		1,510		0.03
Money market	2,140,553		10,139		0.47		2,488,977		15,114		0.61
Certificates of deposit	4,495,062		51,239		1.14		4,229,247		44,818		1.06
Total interest-bearing deposits	14,065,302		66,012		0.47		13,847,947		61,788		0.45
Total deposits	17,557,535		66,012		0.38		17,096,457		61,788		0.36
Borrowings:
Short-term borrowings	5,267		58		1.10		7,051		51		0.73
Long-term borrowings	1,239,433		27,749		2.24		890,846		20,785		2.33
Total borrowings	1,244,700		27,807		2.23		897,897		20,836		2.32
Total interest-bearing liabilities	15,310,002		93,819		0.61		14,745,844		82,624		0.56
Total deposits and borrowings	18,802,235		93,819		0.50		17,994,354		82,624		0.46
Accrued expenses and other liabilities	713,794						686,360
Total liabilities	19,516,029						18,680,714
Total TCF Financial Corp. stockholders' equity	2,513,424						2,373,176
Non-controlling interest in subsidiaries	22,514						21,525
Total equity	2,535,938						2,394,701
Total liabilities and equity	$	22,051,967					$	21,075,415
Net interest income and margin			$	939,780	4.54				$	858,919	4.34


(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 $224.7 million and $140.3 million for the year ended December 31, 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
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
	2017			2017			2017			2017			2016
Interest income:
Loans and leases	$	256,633		$	243,973		$	234,092		$	219,548		$	210,848
Securities available for sale	8,760			8,486			8,052			7,980			7,553
Securities held to maturity	1,048			1,073			1,035			1,280			1,165
Loans held for sale and other	4,187			4,073			5,338			13,499			12,092
Total interest income	270,628			257,605			248,517			242,307			231,658
Interest expense:
Deposits	20,846			17,015			14,436			13,715			15,053
Borrowings	7,922			6,487			6,920			6,478			5,159
Total interest expense	28,768			23,502			21,356			20,193			20,212
Net interest income	241,860			234,103			227,161			222,114			211,446
Provision for credit losses	22,259			14,545			19,446			12,193			19,888
Net interest income after provision for credit losses	219,601			219,558			207,715			209,921			191,558
Non-interest income:
Fees and service charges	33,267			34,605			32,733			31,282			35,132
Card revenue	14,251			14,177			14,154			13,150			13,689
ATM revenue	4,654			5,234			5,061			4,675			4,806
Subtotal	52,172			54,016			51,948			49,107			53,627
Gains on sales of auto loans, net	2,216			—			380			2,864			1,145
Gains on sales of consumer real estate loans, net	11,407			8,049			8,980			8,891			16,676
Servicing fee income	9,000			9,966			10,730			11,651			11,404
Subtotal	22,623			18,015			20,090			23,406			29,225
Leasing and equipment finance	42,831			34,080			39,830			28,298			31,316
Other	3,218			2,930			2,795			2,703			1,365
Fees and other revenue	120,844			109,041			114,663			103,514			115,533
Gains (losses) on securities, net	48			189			—			—			135
Total non-interest income	120,892			109,230			114,663			103,514			115,668
Non-interest expense:
Compensation and employee benefits	127,713			115,127			115,918			124,477			115,001
Occupancy and equipment	39,578			38,766			38,965			39,600			38,150
Other	158,936			61,408			61,075			64,037			59,235
Subtotal	326,227			215,301			215,958			228,114			212,386
Operating lease depreciation	16,497			15,696			12,466			11,242			10,906
Foreclosed real estate and repossessed assets, net	4,739			3,829			4,639			4,549			1,889
Other credit costs, net	343			209			24			101			178
Total non-interest expense	347,806			235,035			233,087			244,006			225,359
Income (loss) before income tax expense (benefit)	(7,313		)	93,753			89,291			69,429			81,867
Income tax expense (benefit)	(110,965		)	30,704			25,794			20,843			29,762
Income after income tax expense (benefit)	103,652			63,049			63,497			48,586			52,105
Income attributable to non-controlling interest	2,253			2,521			3,065			2,308			2,013
Net income attributable to TCF Financial Corporation	101,399			60,528			60,432			46,278			50,092
Preferred stock dividends	3,746			6,464			4,847			4,847			4,847
Impact of preferred stock redemption	—			5,779			—			—			—
Net income available to common stockholders	$	97,653		$	48,285		$	55,585		$	41,431		$	45,245

Earnings per common share:
Basic	$	0.58		$	0.29		$	0.33		$	0.25		$	0.27
Diluted	0.57			0.29			0.33			0.25			0.27

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

Financial highlights:⁽¹⁾
Return on average assets	1.82		%	1.15		%	1.17		%	0.90		%	0.99		%
Return on average common equity	16.95			8.44			9.96			7.64			8.40
Net interest margin	4.57			4.61			4.52			4.46			4.30


(1)	Annualized.



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

	Dec. 31, 2017		Sep. 30, 2017		Jun. 30, 2017		Mar. 31, 2017		Dec. 31, 2016
ASSETS:
Investments and other	$	303,958	$	279,839	$	259,548	$	286,519	$	276,018
Securities held to maturity	163,080		166,883		172,322		177,939		182,177
Securities available for sale:⁽¹⁾
Taxable	831,113		825,192		821,744		815,867		791,289
Tax-exempt	779,964		737,859		689,667		640,826		610,070
Loans and leases held for sale	113,501		96,143		165,859		464,301		492,457
Loans and leases:⁽²⁾
Consumer real estate:
Fixed-rate	1,821,240		1,872,607		1,963,822		2,083,472		2,169,493
Variable- and adjustable-rate	3,151,183		2,964,493		2,782,296		2,945,529		2,916,653
Total consumer real estate	4,972,423		4,837,100		4,746,118		5,029,001		5,086,146
Commercial:
Fixed-rate	963,703		980,262		966,884		1,000,316		948,856
Variable- and adjustable-rate	2,573,022		2,493,163		2,450,168		2,302,575		2,198,661
Total commercial	3,536,725		3,473,425		3,417,052		3,302,891		3,147,517
Leasing and equipment finance	4,713,015		4,316,434		4,277,376		4,285,944		4,252,543
Inventory finance	2,688,387		2,479,416		2,723,340		2,696,787		2,389,980
Auto finance	3,267,855		3,280,612		3,149,974		2,714,862		2,647,088
Other	13,007		11,567		10,235		9,740		9,307
Total loans and leases	19,191,412		18,398,554		18,324,095		18,039,225		17,532,581
Total interest-earning assets	21,383,028		20,504,470		20,433,235		20,424,677		19,884,592
Other assets⁽³⁾	1,437,126		1,434,957		1,315,495		1,263,678		1,253,002
Total assets	$	22,820,154	$	21,939,427	$	21,748,730	$	21,688,355	$	21,137,594

LIABILITIES AND EQUITY:
Non-interest-bearing deposits:
Retail	$	1,938,053	$	1,940,797	$	1,967,542	$	1,880,298	$	1,773,673
Small business	972,493		937,847		897,391		894,845		926,388
Commercial and custodial	660,300		642,400		608,706		626,081		615,686
Total non-interest bearing deposits	3,570,846		3,521,044		3,473,639		3,401,224		3,315,747
Interest-bearing deposits:
Checking	2,541,475		2,539,211		2,554,563		2,530,281		2,454,815
Savings	5,140,417		4,846,090		4,806,371		4,756,486		4,670,906
Money market	1,854,442		2,106,814		2,221,807		2,385,353		2,429,239
Certificates of deposit	5,032,085		4,636,007		4,266,488		4,033,143		4,198,190
Total interest-bearing deposits	14,568,419		14,128,122		13,849,229		13,705,263		13,753,150
Total deposits	18,139,265		17,649,166		17,322,868		17,106,487		17,068,897
Borrowings:
Short-term borrowings	3,759		6,448		6,230		4,628		5,063
Long-term borrowings	1,295,268		983,004		1,225,022		1,459,053		931,720
Total borrowings	1,299,027		989,452		1,231,252		1,463,681		936,783
Total interest-bearing liabilities	15,867,446		15,117,574		15,080,481		15,168,944		14,689,933
Total deposits and borrowings	19,438,292		18,638,618		18,554,120		18,570,168		18,005,680
Accrued expenses and other liabilities	790,850		723,792		673,740		665,301		695,778
Total liabilities	20,229,142		19,362,410		19,227,860		19,235,469		18,701,458
Total TCF Financial Corporation stockholders' equity	2,570,613		2,554,667		2,494,682		2,431,755		2,417,222
Non-controlling interest in subsidiaries	20,399		22,350		26,188		21,131		18,914
Total equity	2,591,012		2,577,017		2,520,870		2,452,886		2,436,136
Total liabilities and equity	$	22,820,154	$	21,939,427	$	21,748,730	$	21,688,355	$	21,137,594


(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 $267.8 million, $249.0 million, $200.7 million, $180.3 million and $157.2 million for the fourth, third, second and first quarters of 2017, and for the fourth quarter of 2016, respectively.



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

	Dec. 31, 2017		Sep. 30, 2017		Jun. 30, 2017		Mar. 31, 2017		Dec. 31, 2016
ASSETS:
Investments and other	3.07	%	3.80	%	4.20	%	3.88	%	3.35	%
Securities held to maturity	2.57		2.57		2.40		2.88		2.56
Securities available for sale:⁽³⁾
Taxable	2.25		2.24		2.16		2.28		2.22
Tax-exempt⁽⁴⁾	3.22		3.22		3.23		3.19		3.18
Loans and leases held for sale	6.43		5.75		6.34		9.39		7.89
Loans and leases:
Consumer real estate:
Fixed-rate	5.61		5.61		5.65		5.70		5.57
Variable- and adjustable rate	5.95		5.91		5.76		5.54		5.36
Total consumer real estate	5.83		5.80		5.72		5.60		5.45
Commercial:
Fixed-rate	5.49		4.62		4.62		4.75		4.70
Variable- and adjustable-rate	4.68		4.76		4.45		4.30		4.05
Total commercial	4.90		4.72		4.50		4.43		4.25
Leasing and equipment finance	4.90		4.53		4.48		4.48		4.43
Inventory finance	6.01		6.71		6.22		5.93		5.80
Auto finance	5.23		5.17		5.01		4.15		4.04
Other	4.75		5.03		5.37		5.44		5.72
Total loans and leases	5.35		5.31		5.15		4.95		4.82

Total interest-earning assets	5.11		5.07		4.94		4.86		4.70

LIABILITIES:
Interest-bearing deposits:
Checking	0.02		0.02		0.01		0.01		0.01
Savings	0.18		0.08		0.04		0.04		0.04
Money market	0.48		0.47		0.45		0.50		0.57
Certificates of deposit	1.28		1.16		1.07		1.02		1.05
Total interest-bearing deposits	0.57		0.48		0.42		0.41		0.44
Total deposits	0.46		0.38		0.33		0.33		0.35
Borrowings:
Short-term borrowings	1.75		1.33		0.79		0.65		0.77
Long-term borrowings	2.43		2.62		2.26		1.78		2.21
Total borrowings	2.43		2.62		2.25		1.78		2.20

Total interest-bearing liabilities	0.72		0.62		0.57		0.54		0.55

Net interest margin	4.57		4.61		4.52		4.46		4.30


(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 Dec. 31,			At Dec. 31,
		2017			2016
Computation of tangible common equity to tangible assets and tangible book value per common share:
Total equity		$	2,680,584		$	2,444,645
Less: Non-controlling interest in subsidiaries		17,827			17,162
Total TCF Financial Corporation stockholders' equity		2,662,757			2,427,483
Less: Preferred stock		265,821			263,240
Total common stockholders' equity	(a)	2,396,936			2,164,243
Less:
Goodwill, net		154,757			225,640
Other intangibles, net		23,687			1,738
Tangible common equity	(b)	$	2,218,492		$	1,936,865

Total assets	(c)	$	23,002,159		$	21,441,326
Less:
Goodwill, net		154,757			225,640
Other intangibles, net		23,687			1,738
Tangible assets	(d)	$	22,823,715		$	21,213,948

Common stock shares outstanding	(e)	171,669,419			170,991,940

Common equity to assets	(a) / (c)	10.42		%	10.09		%
Tangible common equity to tangible assets	(b) / (d)	9.72		%	9.13		%

Book value per common share	(a) / (e)	$	13.96		$	12.66
Tangible book value per common share	(b) / (e)	$	12.92		$	11.33



		Quarter Ended									Year Ended
		Dec. 31,			Sep. 30,			Dec. 31,			Dec. 31,			Dec. 31,
		2017			2017			2016			2017			2016
Computation of return on average tangible common equity:
Net income available to common stockholders	(f)	$	97,653		$	48,285		$	45,245		$	242,954		$	192,736
Plus: Goodwill impairment		73,041			—			—			73,041			—
Plus: Other intangibles amortization and impairment		1,187			806			290			2,354			1,388
Less: Income tax expense attributable to other intangibles amortization and impairment		530			277			103			1,050			493
Adjusted net income available to common stockholders	(g)	$	171,351		$	48,814		$	45,432		$	317,299		$	193,631

Average balances:
Total equity		$	2,591,012		$	2,577,017		$	2,436,136		$	2,535,938		$	2,394,701
Less: Non-controlling interest in subsidiaries		20,399			22,350			18,914			22,514			21,525
Total TCF Financial Corporation stockholders' equity		2,570,613			2,554,667			2,417,222			2,513,424			2,373,176
Less: Preferred stock		265,821			265,556			263,240			264,474			263,240
Average total common stockholders' equity	(h)	2,304,792			2,289,111			2,153,982			2,248,950			2,109,936
Less:
Goodwill, net		197,734			227,539			225,640			219,144			225,640
Other intangibles, net		21,901			22,279			1,872			12,807			2,414
Average tangible common equity	(i)	$	2,085,157		$	2,039,293		$	1,926,470		$	2,016,999		$	1,881,882

Return on average common equity⁽²⁾	(f) / (h)	16.95		%	8.44		%	8.40		%	10.80		%	9.13		%
Return on average tangible common equity⁽²⁾	(g) / (i)	32.87		%	9.57		%	9.43		%	15.73		%	10.29		%

(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 - January 30, 2018

Attached files

TCF FINANCIAL CORP Reports