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

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8-K - 8-K - TCF FINANCIAL CORP	a11-4177_18k.htm

Exhibit 99.1

NEWS RELEASE

	CONTACT:	Jason Korstange
		(952) 745-2755

		www.tcfbank.com

	FOR IMMEDIATE RELEASE

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

TCF Reports 2010 Earnings Increase of 68.3% – Earns $146.6 Million, $1.05 Per Share

2010 HIGHLIGHTS

· Diluted earnings per common share of $1.05, up 94.4 percent

· Net income of $146.6 million, up 68.3 percent

· Net interest margin of 4.14 percent

· Increased total equity by $300.4 million, Tier 1 common capital increased 27 percent to 9.71 percent

· Specialty Finance loans and leases up $406.6 million, or 11.5 percent

· Total revenues of $1.2 billion, up 6.8 percent

FOURTH QUARTER HIGHLIGHTS

· Diluted earnings per common share of 22 cents, up 46.7 percent, from the fourth quarter of 2009

· Net income of $30.7 million, up 57.9 percent, from the fourth quarter of 2009

· Net interest margin of 4.04 percent

· Total non-performing assets down $19.6 million, or 3.9 percent, from September 30, 2010

· Announced quarterly cash dividend of five cents per common share, payable February 28, 2011

Earnings Summary																Table 1
($ in thousands, except per-share data)										Percent Change
	4Q 2010			3Q 2010			4Q 2009			4Q10 vs 3Q10	4Q10 vs 4Q09	YTD 2010		YTD 2009		Percent Change
Net income	$	30,725		$	36,893		$	19,456		(16.7) %	57.9 %	$	146,564	$	87,097	68.3%
Diluted earnings per common share(1)	.22			.26			.15			(15.4)	46.7	1.05		.54		94.4

Financial Ratios(2)
Return on average assets	.68		%	.84		%	.43		%			.82 %		.49 %
Return on average common equity(1)	8.25			9.95			6.57					10.36		5.95
Net interest margin	4.04			4.12			4.07					4.14		3.87
Net charge-offs as a percentage of average loans and leases	1.75			1.58			1.35					1.47		1.34

(1) Includes a non-cash deemed preferred stock dividend of $12,025 recorded during the year ended December 31, 2009. Excluding this amount, diluted earnings per common share was $.64 and the return on average common equity was 8.57% for the year ended December 31, 2009. (2) Annualized.

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WAYZATA, MN, January 20, 2011 – TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported diluted earnings per common share of 22 cents for the fourth quarter of 2010, compared with 15 cents in the fourth quarter of 2009, an increase of 46.7 percent. Net income for the fourth quarter of 2010 was $30.7 million, compared with $19.5 million in the fourth quarter of 2009, an increase of 57.9 percent.

Diluted earnings per common share for the year ended December 31, 2010 was $1.05, compared with 54 cents for the same 2009 period, an increase of 94.4 percent. Net income for the year ended December 31, 2010 was $146.6 million, compared with $87.1 million for the same 2009 period, an increase of 68.3 percent.

TCF declared a quarterly cash dividend of five cents per common share payable on February 28, 2011 to stockholders of record at the close of business on January 28, 2011.

Chairman’s Statement

“Despite a troubled economy and numerous legislative and regulatory burdens, TCF is reporting its 63rd consecutive quarter of profitability and a record high level of capital,” said William A. Cooper, TCF Chairman and CEO. “We continue to focus on our conservative banking philosophy, which has proven its sustainability throughout the current economic cycle. We are seeing encouraging signs on the credit front, such as a decrease of nearly $20 million in non-performing assets from the third quarter (the first decrease in non-performing assets in 18 quarters). Throughout 2010, we have demonstrated an ability to meet our challenges head-on. This proactive approach has proven to be the right thing to do for our customers and stockholders.”

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Total Revenue																Table 2

								Percent Change
($ in thousands)	4Q		3Q		4Q		4Q10 vs			4Q10 vs		YTD		YTD		Percent
	2010		2010		2009		3Q10			4Q09		2010		2009		Change
Net interest income	$174,286		$173,755		$169,641			.3	%	2.7	%	$ 699,202		$ 633,006		10.5	%
Fees and other revenue:
Fees and service charges	61,480		67,684		74,875			(9.2	)	(17.9	)	273,181		286,908		(4.8	)
Card revenue	27,625		27,779		26,813			(.6	)	3.0		111,067		104,770		6.0
ATM revenue	6,985		7,985		7,006			(12.5	)	(.3	)	29,836		30,438		(2.0	)
Total banking fees	96,090		103,448		108,694			(7.1	)	(11.6	)	414,084		422,116		(1.9	)
Leasing and equipment finance	23,402		24,912		24,408			(6.1	)	(4.1	)	89,194		69,113		29.1
Other	817		1,077		2,764			(24.1	)	(70.4	)	5,584		5,239		6.6
Total fees and other revenue	120,309		129,437		135,866			(7.1	)	(11.5	)	508,862		496,468		2.5
Gains on securities, net	21,185		8,505		7,283			149.1		190.9		29,123		29,387		(.9	)
Total non-interest income	141,494		137,942		143,149			2.6		(1.2	)	537,985		525,855		2.3
Total revenue	$315,780		$311,697		$312,790			1.3		1.0		$1,237,187		$1,158,861		6.8

Net interest margin(1)	4.04	%	4.12	%	4.07	%						4.14	%	3.87	%
Fees and other revenue as a % of total revenue	38.10		41.53		43.44							41.13		42.84

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

Net Interest Income

· Net interest income increased $4.6 million, or 2.7 percent, from the fourth quarter of 2009 and was up slightly from the third quarter of 2010. The increase in net interest income from the fourth quarter of 2009 was primarily due to decreased rates paid on deposits and increases in Specialty Finance loans and leases, partially offset by the impact of increased asset liquidity and decreased income from consumer loans.

· Net interest margin in the fourth quarter of 2010 was 4.04 percent, compared with 4.07 percent in the fourth quarter of 2009 and 4.12 percent in the third quarter of 2010. The decrease in net interest margin from the fourth quarter of 2009 was primarily due to increased asset liquidity and lower asset yields as a result of the lower interest rate environment, the mix of fixed- and variable-rate loans and leases and higher average balances of non-accrual loans and leases, partially offset by lower average rates on deposits. The decrease from the third quarter of 2010 was primarily due to increased asset liquidity and lower yields on loans and leases primarily due to the impact of Specialty Finance acquisitions late in the third quarter of 2010, partially offset by slightly lower average rates on deposits and the impact of lower average borrowing costs. Since the end of 2009, TCF has been repositioning its balance sheet for an eventual increase in interest rates. While this has negatively impacted the net interest margin rate in the short term, the balance sheet

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composition, based on TCF’s interest rate gap assumptions, has shifted to an asset sensitive position of 2.8 percent as of December 31, 2010, from a liability sensitive position of 6.6 percent at December 31, 2009.

· During the fourth quarter of 2010, TCF continued to increase its asset-based liquidity position by increasing the average balance of its interest-bearing deposits held at the Federal Reserve by $211.8 million from the fourth quarter of 2009 and $82.6 million, or 56.2 percent, from the third quarter of 2010.

Non-interest Income

· Banking fees and service charges in the fourth quarter of 2010 were $61.5 million, down $13.4 million, or 17.9 percent, from the fourth quarter of 2009 and down $6.2 million, or 9.2 percent, from the third quarter of 2010. The decrease in banking fees and service charges from the fourth quarter of 2009 was primarily due to a decrease in activity-based fee revenue as a result of the implementation of recent overdraft fee regulations and changes in customer banking and spending behavior, partially offset by increased monthly maintenance fee income. The decrease in banking fees and service charges from the third quarter of 2010 was primarily due to a full quarter effect of the overdraft fee regulations implemented in August 2010 and lower monthly maintenance fees as more customers qualify for fee waivers.

· Card revenues were $27.6 million in the fourth quarter of 2010, up $812 thousand, or 3 percent, from the fourth quarter of 2009 and relatively flat from the third quarter of 2010. The increase from the fourth quarter of 2009 was primarily the result of an increase in average spending per active account, partially offset by a decrease in active accounts. Card revenues were flat from the third quarter of 2010 due primarily to increases in average spending per account, offset by decreases in active accounts and in the average interchange rate.

· Leasing and equipment finance revenues were $23.4 million in the fourth quarter of 2010, down $1 million, or 4.1 percent, from the fourth quarter of 2009 and down $1.5 million, or 6.1 percent, from the third quarter of 2010. The decrease from the fourth quarter of 2009 was primarily due to decreased operating lease revenue as a result of operating lease runoff from the Fidelity National Capital, Inc. acquisition that occurred during the third quarter of 2009, which was partially offset by a corresponding decrease in operating lease depreciation. The decrease in leasing revenues from the third quarter of 2010 was primarily

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due to decreased sales-type lease activity, due mainly to a high level of customer buyout activity during the third quarter of 2010 and other customer-driven factors not within TCF’s control.

Securities Available for Sale

Average Securities Available for Sale												Table 3
				Yield						Yield
($ in thousands)	4Q	3Q	4Q					YTD	YTD	YTD		YTD
	2010	2010	2009	4Q10		4Q09		2010	2009	2010		2009
U.S. Government sponsored entities:
Mortgage-backed securities	$1,729,928	$1,796,348	$1,497,672	4.16	%	4.73	%	$1,817,413	$1,645,544	4.42	%	4.92	%
Debentures	-	-	413,647	-		2.23		-	389,245	-		2.18
U.S. Treasury Bills	198,895	69,705	67,932	.13		.07		71,233	17,123	.13		.07
Other securities	2,945	3,473	540	.54		4.42		3,963	508	.50		5.12
Total	$1,931,768	$1,869,526	$1,979,791	3.74		4.05		$1,892,609	$2,052,420	4.25		4.36

· At December 31, 2010, net unrealized losses in the available for sale security portfolio were $25.8 million.

· During the fourth quarter of 2010, TCF recognized net gains of $21.9 million on the sale of $408.4 million of mortgage-backed securities in the available for sale securities portfolio.

· At December 31, 2010, TCF held $1.9 billion of mortgage-backed securities and $25 million of U.S. Treasury Bills.

Loans and Leases

Average Loans and Leases										Table 4
				Percent Change
($ in thousands)	4Q	3Q	4Q	4Q10 vs		4Q10 vs		YTD	YTD	Percent
	2010	2010	2009	3Q10		4Q09		2010	2009	Change
Consumer real estate
First mortgage lien	$ 4,924,399	$ 4,935,583	$ 4,954,306	(.2	)%	(.6	)%	$ 4,934,257	$ 4,932,315	-	%
Junior lien	2,272,857	2,297,433	2,321,045	(1.1	)	(2.1	)	2,296,400	2,351,033	(2.3	)
Total	7,197,256	7,233,016	7,275,351	(.5	)	(1.1	)	7,230,657	7,283,348	(.7	)
Consumer other	23,283	25,130	32,676	(7.3	)	(28.7	)	26,577	35,849	(25.9	)
Total consumer	7,220,539	7,258,146	7,308,027	(.5	)	(1.2	)	7,257,234	7,319,197	(.8	)
Commercial real estate	3,322,619	3,327,417	3,241,269	(.1	)	2.5		3,311,634	3,136,699	5.6
Commercial business	328,287	346,431	443,013	(5.2	)	(25.9	)	375,390	475,674	(21.1	)
Total commercial	3,650,906	3,673,848	3,684,282	(.6	)	(.9	)	3,687,024	3,612,373	2.1
Leasing and equipment finance	3,155,472	3,002,714	3,049,093	5.1		3.5		3,056,006	2,826,835	8.1
Inventory finance	803,157	655,485	383,291	22.5		109.5		677,214	179,990	N.M.
Total	$14,830,074	$14,590,193	$14,424,693	1.6		2.8		$14,677,478	$13,938,395	5.3

N.M. = Not meaningful.

· Average consumer real estate loan balances decreased $78.1 million, or 1.1 percent, from the fourth quarter of 2009 and declined slightly compared with balances in the third quarter of 2010. This reflects low consumer demand for financing due in part to declines in home values and reduced levels of consumer spending in the weak economy.

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· Variable-rate consumer real estate loans increased $407.9 million from the fourth quarter of 2009 and increased $109.5 million from the third quarter of 2010, while fixed-rate consumer real estate loans decreased $486 million from the fourth quarter of 2009 and decreased $145.3 million from the third quarter of 2010. Variable-rate loans comprised 33 percent of total consumer real estate loans at December 31, 2010, up from 26.8 percent at December 31, 2009 and 31.6 percent at September 30, 2010.

· As of December 31, 2010, 74.9 percent of TCF’s consumer real estate lending portfolio consisted of closed-end loans with amortizing principal payments, while 25.1 percent were lines of credit.

· Average commercial loan balances in the fourth quarter of 2010 declined slightly compared with balances in the fourth quarter of 2009 and the third quarter of 2010. Excluding declines in loans in Michigan, the commercial portfolio grew 1.7 percent from the fourth quarter of 2009 and was flat from the third quarter of 2010. Average commercial real estate balances increased $81.4 million or 2.5 percent from the fourth quarter of 2009 and were flat from the third quarter of 2010. Average commercial business balances decreased $114.7 million from the fourth quarter of 2009 and $18.1 million from the third quarter of 2010 due primarily to decreases in demand for commercial business loans due to the continued weakened economy.

· Average leasing and equipment finance balances increased $106.4 million, or 3.5 percent, from the fourth quarter of 2009 and $152.8 million, or 5.1 percent, from the third quarter of 2010. Average leasing and equipment finance balances in 2010 increased $229.2 million, or 8.1 percent, from 2009. These increases were primarily due to portfolio acquisitions near the end of the third quarter of 2010 and the acquisition of Fidelity National Capital, Inc., which occurred late in the third quarter of 2009.

· Average inventory finance loans increased $419.9 million, or 109.5 percent, from the fourth quarter of 2009 and $147.7 million, or 22.5 percent, from the third quarter of 2010. The increase from the fourth quarter of 2009 was primarily due to growth in lawn and garden programs and TCF’s entrance in the power sports industry in the third quarter of 2010. The increase from the third quarter of 2010 was primarily due to TCF’s entrance into the power sports industry with the acquisition of $125.8 million in loans from Arctic Cat Sales Inc. late in the third quarter of 2010. This acquisition contributed $175.3 million to the increase in

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year-over-year average balances and $144.1 million to the increase in average balances from the third quarter of 2010.

Credit Quality

The following table summarizes TCF’s loan and lease portfolio based on the most important credit quality data components that should be used to understand the overall conditions of the portfolio.

Credit Quality Summary of Performing and Underperforming Loans and Leases													Table 5

December 31, 2010:	Performing Loans and Leases						60+ Days				Non-accrual
							Delinquent and		Accruing		loans and		Total Loans
(In thousands)	Non-classified		Classified(1)		Total		Accruing(2)		TDRs		leases		and Leases
Consumer real estate and other	$ 6,613,610		$ —		$ 6,613,610		$ 76,711		$ 337,401		$167,547		$ 7,195,269
Commercial real estate and commercial business	3,091,911		354,185		3,446,096		9,021		48,838		142,248		3,646,203
Leasing and equipment finance	3,073,347		35,695		3,109,042		11,029		—		34,407		3,154,478
Inventory finance	785,245		5,710		790,955		344		—		1,055		792,354
Total loans and leases	$13,564,113		$ 395,590		$13,959,703		$ 97,105		$ 386,239		$345,257		$14,788,304
Percent of total loans and leases	91.7	%	2.7	%	94.4	%	.7	%	2.6	%	2.3	%	100.0	%


September 30, 2010:	Performing Loans and Leases						60+ Days				Non-accrual
							Delinquent and		Accruing		loans and		Total Loans
	Non-classified		Classified(1)		Total		Accruing(2)		TDRs		leases		and Leases
Consumer real estate and other	$ 6,714,413		$ —		$ 6,714,413		$ 83,856		$ 315,588		$166,597		$ 7,280,454
Commercial real estate and commercial business	3,115,812		378,624		3,494,436		1,260		5,468		161,889		3,663,053
Leasing and equipment finance	3,074,445		32,616		3,107,061		9,956		—		40,455		3,157,472
Inventory finance	788,084		6,403		794,487		264		—		871		795,622
Total loans and leases	$13,692,754		$ 417,643		$14,110,397		$ 95,336		$ 321,056		$369,812		$14,896,601
Percent of total loans and leases	91.9	%	2.8	%	94.7	%	.6	%	2.2	%	2.5	%	100.0	%


	Performing Loans and Leases						60+ Days				Non-accrual
December 31, 2009:							Delinquent and		Accruing		loans and		Total Loans
	Non-classified		Classified(1)		Total		Accruing(2)		TDRs		leases		and Leases
Consumer real estate and other	$ 6,863,222		$ —		$ 6,863,222		$ 76,959		$ 252,510		$139,300		$ 7,331,991
Commercial real estate and commercial business	3,280,957		331,298		3,612,255		68		—		106,196		3,718,519
Leasing and equipment finance	2,967,540		31,767		2,999,307		22,114		—		50,008		3,071,429
Inventory finance	467,319		—		467,319		715		—		771		468,805
Total loans and leases	$13,579,038		$ 363,065		$13,942,103		$ 99,856		$ 252,510		$296,275		$14,590,744
Percent of total loans and leases	93.1	%	2.5	%	95.6	%	.7	%	1.7	%	2.0	%	100.0	%

(1) Excludes classified loans and leases that are 60+ days delinquent or accruing TDRs. (2) Excludes accruing TDRs that are 60+ delinquent.

· Within the current performing loans and leases, TCF classifies customers within regulatory classification guidelines. Loans and leases that are “classified” mean that management has concerns regarding the ability of the borrowers to meet existing loan terms but may never become non-performing or result in a loss.

· Performing loans that are 60+ days delinquent have a higher potential to become non-performing and generally are a leading indicator for future charge-off trends.

· Accruing troubled debt restructurings (“TDRs”) are loans to borrowers that have been modified such that TCF has granted a concession in terms to improve the likelihood of collection of all principal owed.

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· Non-accrual loans and leases generally have been charged down to the estimated fair value of the collateral less selling costs or reserved for expected loss upon workout.

When classified loans and leases become 60 or more days delinquent, they are included within “60+ days delinquent and accruing” in the previous table. Accruing TDRs, regardless of classification or delinquency status, are included within “accruing TDRs” in the previous table.

At December 31, 2010:

· Over 60-day delinquency rate was .79 percent, up from .69 percent at December 31, 2009 and flat compared with .78 percent at September 30, 2010. The increase from the fourth quarter of 2009 was primarily due to increases in commercial real estate and consumer real estate, partially offset by decreases in equipment finance and inventory finance loan delinquencies. The delinquency rate increased from the third quarter of 2010 as increases in commercial real estate loans and leasing and equipment finance delinquencies were offset by decreases in consumer real estate.

· Total accruing consumer real estate TDRs were $337.4 million, up $84.9 million, or 33.6 percent, from December 31, 2009 and up $21.8 million, or 6.9 percent, from September 30, 2010. The allowance for loan losses on accruing consumer real estate TDRs was $36.8 million, or 10.9 percent of the outstanding balance, at December 31, 2010. The over 60-day delinquencies included in accruing consumer real estate TDRs were $17.9 million, or 5.3 percent, at December 31, 2010, compared with $17.4 million, or 5.5 percent, at September 30, 2010.

· Total accruing commercial real estate TDRs were $48.8 million at December 31, 2010, compared with $5.5 million at September 30, 2010, as TCF continues to work with financially stressed commercial customers to reduce the likelihood of default and potential charge-offs. These loans have been reviewed for impairment on an individual basis. The allowance for loan losses on accruing commercial real estate TDRs was $695 thousand, or just 1.4 percent of the outstanding balance at December 31, 2010, due to the secured nature of these loans. None of the accruing commercial TDRs were over 60-days delinquent.

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· Non-accrual loans and leases increased $49 million, or 16.5 percent, from December 31, 2009 and decreased $24.6 million, or 6.6 percent, from September 30, 2010. The increase from the fourth quarter of 2009 was primarily due to increases in non-accrual consumer real estate and commercial loans, partially offset by decreases in non-accrual equipment finance loans and leases. The decrease from the third quarter of 2010 was primarily due to a $51.7 million decrease in new non-accrual loans, primarily in commercial loans.

Allowance for Loan and Lease Losses

Allowance for Loan and Lease Losses																		Table 6
										Percent Change
($ in thousands)	4Q 2010			3Q 2010			4Q 2009			4Q10 vs 3Q10	4Q10 vs 4Q09	YTD 2010			YTD 2009			Percent Change
Allowance for Loan and Lease Losses
Balance at beginning of period	$	253,120		$	251,643		$	215,732		.6 %	17.3 %	$	244,471		$	172,442		41.8 %
Charge-offs	(69,913		)	(62,945		)	(52,841		)	11.1	32.3	(237,063		)	(202,398		)	17.1
Recoveries	4,966			5,135			4,191			3.3	(18.5)	21,974			15,891			(38.3)
Net charge-offs	(64,947		)	(57,810		)	(48,650		)	12.3	33.5	(215,089		)	(186,507		)	15.3
Provision for credit losses	77,646			59,287			77,389			31.0	.3	236,437			258,536			(8.5)
Balance at end of period	$	265,819		$	253,120		$	244,471		5.0	8.7	$	265,819		$	244,471		8.7

Net Charge-Offs (Recoveries) as a Percentage of Average Loans and Leases
Consumer real estate and other:
First mortgage lien	1.88		%	1.63		%	1.34		%	25 bps	54 bps	1.55		%	1.11		%	44 bps
Junior lien	2.37			2.50			2.54			(13)	(17)	2.33			2.21			12
Total consumer real estate	2.04			1.91			1.73			13	31	1.80			1.46			34
Consumer other	N.M.			N.M.			N.M.			-	-	N.M.			N.M.			-
Total consumer real estate and other	2.10			2.00			1.84			10	26	1.86			1.56			30
Commercial real estate	2.08			1.56			.69			52	139	1.36			1.13			23
Commercial business	1.58			(.16		)	1.51			174	7	.92			1.92			(100)
Total commercial real estate and commercial business	2.04			1.40			.79			64	125	1.31			1.24			7
Leasing and equipment finance	.99			1.16			1.01			(17)	(2)	1.00			.97			3
Inventory finance	.28			.05			.09			23	19	.17			.10			7
Total	1.75			1.58			1.35			17	40	1.47			1.34			13

Allowance as a percentage of period end loans and leases	1.80		%	1.70		%	1.68		%			1.80		%	1.68		%
Ratio of allowance to net charge-offs(1)	1.0		X	1.1		X	1.3		X			1.2		X	1.3		X

Credit Loss Reserves
Allowance for loan and lease losses	$	265,819		$	253,120		$	244,471		5.0 %	8.7 %
Reserves for unfunded commitments	2,353			2,696			3,850			(12.7)	(38.9)
Total credit loss reserves	$	268,172		$	255,816		$	248,321		4.8	8.0

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

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At December 31, 2010:

· Allowance for loan and lease losses was $265.8 million, or 1.80 percent of loans and leases, compared with $244.5 million, or 1.68 percent, at December 31, 2009 and $253.1 million, or 1.70 percent, at September 30, 2010.

For the quarter ended December 31, 2010:

· Provision for credit losses was $77.6 million, flat from $77.4 million in the fourth quarter of 2009 and up from $59.3 million recorded in the third quarter of 2010. The increase from the third quarter of 2010 was primarily due to increased reserves and charge-offs in the commercial real estate portfolio.

· Net loan and lease charge-offs were $64.9 million, or 1.75 percent, annualized, of average loans and leases, up from $48.7 million, or 1.35 percent, annualized, in the fourth quarter of 2009 and up from $57.8 million, or 1.58 percent, annualized, in the third quarter of 2010. Increases over the fourth quarter of 2009 were primarily due to increases in commercial real estate and consumer real estate net charge-offs, with increased consumer real estate net charge-offs occurring primarily in Illinois, partially offset by lower net charge-offs in Minnesota and Michigan. The increase from the third quarter of 2010 was primarily the result of increases in commercial real estate, consumer real estate and commercial business net charge-offs. Leasing and equipment finance net charge-offs were $7.8 million, or .99 percent annualized, of average loans and leases, down from $8.7 million, or 1.16 percent annualized, of average loans and leases in the third quarter of 2010, primarily due to charge-offs of previously reserved non-accrual loans and leases, which resulted in a decrease in the non-accrual balances in the leasing and equipment finance portfolio.

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Deposits

Average Deposits								Table 7
				Percent Change
($ in thousands)	4Q 2010	3Q 2010	4Q 2009	4Q10 vs 3Q10	4Q10 vs 4Q09	YTD 2010	YTD 2009	Percent Change

Checking	$ 4,358,771	$ 4,341,803	$ 4,116,290	.4%	5.9%	$ 4,408,853	$ 4,038,964	9.2%
Savings	5,412,094	5,446,852	5,231,159	(.6)	3.5	5,429,416	4,748,774	14.3
Money market	643,801	654,030	671,755	(1.6)	(4.2)	656,691	683,030	(3.9)
Subtotal	10,414,666	10,442,685	10,019,204	(.3)	3.9	10,494,960	9,470,768	10.8
Certificates	1,040,348	1,006,685	1,366,871	3.3	(23.9)	1,054,179	1,915,467	(45.0)
Total deposits	$11,455,014	$11,449,370	$11,386,075	-	.6	$11,549,139	$11,386,235	1.4

Average interest rate on deposits	.46%	.48%	.74%			.53%	1.07%

· Total average deposits increased $68.9 million, or .6 percent, from the fourth quarter of 2009 and were flat with the third quarter of 2010. Total average deposits in 2010 increased $162.9 million, or 1.4 percent, from 2009. The increase from the fourth quarter of 2009 and from the full year of 2009 was primarily due to increases in core deposits, partially offset by decreases in average certificates of deposit resulting from pricing strategies to reduce higher cost funds.

· The average interest cost of deposits in the fourth quarter of 2010 was .46 percent, down 28 basis points from the fourth quarter of 2009 and down slightly from the third quarter of 2010. The average interest cost of deposits during 2010 was .53 percent, down 54 basis points from 2009. Declines in the average interest cost of deposits were primarily due to pricing strategies on certain deposit products, mix changes and lower market interest rates. The weighted average interest cost of deposits on December 31, 2010 was .41 percent, compared with .48 percent on September 30, 2010 and .65 percent on December 31, 2009.

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Non-interest Expense

Non-interest Expense									Table 8
					Percent Change
($ in thousands)	4Q 2010	3Q 2010		4Q 2009	4Q10 vs 3Q10	4Q10 vs 4Q09	YTD 2010	YTD 2009	Percent Change
Compensation and
employee benefits	$ 87,371	$ 90,282		$ 89,374	(3.2)%	(2.2)%	$352,861	$356,996	(1.2)%
Occupancy and equipment	30,968	32,091		31,099	(3.5)	(.4)	126,551	126,292	.2
FDIC insurance	7,398	5,486		5,288	34.9	39.9	23,584	19,109	23.4
Deposit account premiums	1,688	3,340		9,347	(49.5)	(81.9)	17,304	30,682	(43.6)
Advertising and marketing	3,154	3,354		3,789	(6.0)	(16.8)	13,062	17,134	(23.8)
Other	37,309	39,481		40,193	(5.5)	(7.2)	146,253	142,818	2.4
Core operating expenses	167,888	174,034		179,090	(3.5)	(6.3)	679,615	693,031	(1.9)
Foreclosed real estate and
repossessed assets, net	12,781	9,588		12,537	33.3	1.9	40,385	31,886	26.7
Operating lease depreciation	8,289	8,965		10,750	(7.5)	(22.9)	37,106	22,368	65.9
Other credit costs, net	1,542	(834	)	4,386	N.M.	(64.8)	6,018	12,137	(50.4)
FDIC special assessment	-	-		-	-	-	-	8,362	(100.0)
Total non-interest expense	$190,500	$191,753		$206,763	(.7)	(7.9)	$763,124	$767,784	(.6)
N.M. = Not meaningful.

· Core operating expenses decreased $11.2 million, or 6.3 percent, from the fourth quarter of 2009, $6.1 million, or 3.5 percent from the third quarter of 2010 and $13.4 million, or 1.9 percent, from the full year of 2010 from 2009. The decrease in all periods was primarily attributable to decreases in deposit account premiums and compensation and employee benefits costs.

· Compensation and employee benefits costs decreased $2 million, or 2.2 percent, from the fourth quarter of 2009 and $2.9 million, or 3.2 percent from the third quarter of 2010. Compensation and employee benefits costs declined $4.1 million, or 1.2 percent, for the full year of 2010 from 2009. The decreases in all periods were primarily due to headcount reductions and decreased employee medical plan expenses, partially offset by increased costs in the Specialty Finance businesses as a result of expansion and growth.

· FDIC insurance increased $2.1 million, or 39.9 percent, from the fourth quarter of 2009 and $1.9 million, or 34.9 percent, from the third quarter of 2010. FDIC insurance increased $4.5 million, or 23.4 percent, for the full year of 2010 from 2009. The increases in all periods were primarily due to higher deposit insurance rates. The Dodd-Frank Act requires changes to a number of components of the FDIC insurance assessment, with an expected implementation date by the FDIC of April 1, 2011. The changes amend the current methodology used to determine the assessments paid by institutions with assets greater than $10 billion, including changing the assessment base from deposits to total average assets less tier one capital.

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Additionally, the FDIC has developed a scorecard approach to determine a separate assessment rate for each institution with assets greater than $10 billion. As a result of these changes, TCF’s FDIC insurance may increase significantly in 2011.

· Deposit account premiums decreased $7.7 million, or 81.9 percent, from the fourth quarter of 2009 and $1.7 million, or 49.5 percent, from the third quarter of 2010. Deposit account premiums decreased $13.4 million, or 43.6 percent, for the full year of 2010 from 2009. The decreases in deposit account premiums were due to revised marketing strategies and lower checking account production.

· Advertising and marketing expenses decreased $635 thousand, or 16.8 percent, from the fourth quarter of 2009 and $200 thousand, or 6 percent, from the third quarter of 2010. Advertising and marketing expenses decreased $4.1 million, or 23.8 percent, for the full year of 2010 from 2009. The decrease in all periods was primarily the result of retail banking product strategies and a related decrease in spending on media advertisements.

· Other non-interest expense decreased $2.9 million, or 7.2 percent, from the fourth quarter of 2009 and $2.2 million, or 5.5 percent, from the third quarter of 2010. Other non-interest expense increased $3.4 million, or 2.4 percent, for the full year of 2010 from 2009. The decrease from the fourth quarter of 2009 was primarily due to a decrease in severance costs, as a result of the reorganization of the company’s structure and business segments in the fourth quarter of 2009. The decrease from the third quarter of 2010 was due in part to decreased deposit losses. In addition, during the fourth quarter of 2010 TCF, based on information made public by Visa U.S.A. Inc. (“Visa”), reduced the contingency obligation related to the Visa indemnification for certain covered litigation matters by $1 million, further contributing to the decrease in other non-interest expense from the fourth quarter of 2009 and the third quarter of 2010. The increase for 2010 compared with 2009 was primarily attributable to increased consulting costs related to administration of the company’s Bank Secrecy Act program and, to a lesser extent, other legal costs including the challenge of the Durbin Amendment of the Dodd-Frank Act, partially offset by lower severance costs.

· Foreclosed real estate and repossessed asset expenses increased $244 thousand, or 1.9 percent, from the fourth quarter of 2009 and $3.2 million, or 33.3 percent, from the third quarter of 2010. Foreclosed real

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estate and repossessed asset expenses increased $8.5 million, or 26.7 percent, for the full year of 2010 from 2009. The increase from the fourth quarter of 2009 and the third quarter of 2010 was primarily due to increased valuation adjustments and tax expenses, partially offset by increases in the number of sales and the average net gain or loss at sale. The increase in 2010 from 2009 was primarily due to an increase in the number of consumer real estate properties owned and the associated expenses.

· Other credit costs decreased $2.8 million, or 64.8 percent, from the fourth quarter of 2009 and increased $2.4 million from the third quarter of 2010. Other credit costs decreased $6.1 million, or 50.4 percent, for the full year of 2010 from 2009. The decrease from the fourth quarter of 2009 and from the full year of 2009 was primarily attributable to the reversal of reserves on several unfunded commitments that were closed and lower costs related to consumer real estate loan pool insurance. The increase from the third quarter of 2010 was primarily due to a decrease in reserves on commercial letters of credit due to the elimination of an exposure on an impaired loan in Michigan during the third quarter of 2010.

Income Taxes

· Income tax expense was $16 million for the fourth quarter of 2010, or 33.6 percent of pre-tax income, compared with $9.4 million, or 32.8 percent of pre-tax income, for the comparable 2009 period and $22.9 million, or 37.7 percent of pre-tax income, for the third quarter of 2010. The effective tax rate for the fourth quarter of both 2010 and 2009 included the effects of year-to-date changes in the estimated annual effective tax rate of approximately $1 million.

· Income tax expense was $87.8 million for 2010, or 36.9 percent of pre-tax income, compared with $45.9 million, or 34.6 percent of pre-tax income, for 2009. Income tax expense for 2009 included a $4.2 million decrease in income tax expense related to favorable developments in uncertain tax positions, partially offset by a slight increase in the effective income tax rate.

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Capital and Borrowing Capacity

Capital Information				Table 9
At period end
($ in thousands, except per-share data)	4Q 2010			4Q 2009
Total equity	$1,480,163			$1,179,755
Total equity to total assets	8.02	%		6.60	%
Book value per common share	$ 10.30			$ 9.10
Tangible realized common equity to tangible assets(1)	7.37	%		5.86	%

Risk-based capital
Tier 1	$1,475,525		10.59 %	$1,161,750		8.52 %
Total	1,808,412		12.98	1,514,940		11.12
Excess over stated “10% well-capitalized” requirement	415,502		2.98	152,153		1.12

Tier 1 common capital(2)	$1,352,025		9.71 %	$1,042,357		7.65 %

(1) Excludes the impact of goodwill, other intangibles and accumulated other comprehensive income (loss) (see “Reconciliation of GAAP to Non-GAAP Measures” table). (2) Excludes the effect of qualifying trust preferred securities and qualifying non-controlling interest in subsidiaries (see “Reconciliation of GAAP to Non-GAAP Measures” table).

· Total risk-based capital at December 31, 2010 of $1.8 billion, or 12.98 percent of risk-weighted assets, was $415.5 million in excess of the stated “10 percent well-capitalized” requirement.

· On January 18, 2011, the Board of Directors of TCF declared a regular quarterly cash dividend of five cents per common share payable on February 28, 2011 to stockholders of record at the close of business on January 28, 2011.

· At December 31, 2010, TCF had $1.7 billion in unused, secured borrowing capacity at the FHLB of Des Moines and $529 million in unused, secured borrowing capacity at the Federal Reserve Discount Window.

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Website Information

A live webcast of TCF’s conference call to discuss fourth quarter earnings will be hosted at TCF’s website, ir.tcfbank.com, on January 20, 2011 at 10:00 a.m., CT. Additionally, the webcast is available for replay at TCF’s website after the conference call. The website also includes free access to company news releases, TCF’s annual report, quarterly reports, investor presentations and SEC filings.

TCF is a Wayzata, Minnesota-based national bank holding company with $18.5 billion in total assets. TCF has 442 banking offices in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF also conducts commercial leasing and equipment finance business in all 50 states and commercial inventory finance business in the U.S. and Canada. For more information about TCF, please visit www.tcfbank.com.

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Forward-Looking Information

This earnings release and other reports issued by the Company, including reports filed with the SEC, may contain “forward-looking” statements that deal with future results, plans or performance. In addition, TCF’s management may make such statements orally to the media, or to securities analysts, investors or others. Forward-looking statements deal with matters that do not relate strictly to historical facts. TCF’s future results may differ materially from historical performance and forward-looking statements about TCF’s expected financial results or other plans and are subject to a number of risks and uncertainties. These include, but are not limited to the following:

Adverse Economic or Business Conditions, Credit Risks. Continued or deepening deterioration in general economic and banking industry conditions, or continued increases in unemployment in TCF’s primary banking markets; adverse economic, business and competitive developments such as shrinking interest margins, deposit outflows, deposit account attrition, or an inability to increase the number of deposit accounts; adverse changes in credit and other risks posed by TCF’s loan, lease, investment, and securities available for sale portfolios, including continuing declines in commercial or residential real estate values or changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements; interest rate risks resulting from fluctuations in prevailing interest rates or other factors that result in a mismatch between yields earned on TCF’s interest-earning assets and the rates paid on its deposits and borrowings.

Earnings/Capital Constraints, Liquidity Risks. Limitations on TCF’s ability to pay dividends or to increase dividends in the future because of financial performance deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to adverse conditions in the banking industry, the economic impact on banks of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Act”) and Emergency Economic Stabilization Act of 2008, as amended (“EESA”), and other regulatory reform legislation; the impact of financial regulatory reform, including the phase out of trust preferred securities in Tier 1 capital called for by the Act, or 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 and unfavorable conditions in the credit markets that restrict or limit various funding sources; costs associated with new regulatory requirements or interpretive guidance relating to liquidity.

Legislative and Regulatory Requirements. New consumer protection and supervisory requirements, including the Act’s creation of a new consumer protection bureau and limits on Federal preemption for state laws that could be applied to national banks; the imposition of requirements with an adverse impact relating to TCF’s lending, loan collection and other business activities as a result of the EESA and the Act, or other legislative or regulatory developments such as mortgage foreclosure moratorium laws or imposition of underwriting or other limitations that impact the ability to use certain variable-rate products; reduction of interchange revenue from debit card transactions resulting from the so-called Durbin Amendment to the Act, which limits debit card interchange fees to amounts that will only allow issuers to recover incremental costs of authorization, clearance and settlement of debit card transactions, plus possibly some costs relating to fraud prevention; impact of legislative, regulatory or other changes affecting customer account charges and fee income; changes to bankruptcy laws which would result in the loss of all or part of TCF’s security interest due to collateral value declines (so-called “cramdown” provisions); any material failure of TCF to comply with the terms of its Consent Order with the Office of the Comptroller of the Currency relating to TCF’s Bank Secrecy Act compliance, which may result in regulatory enforcement action including monetary penalties; increased health care costs resulting from recently enacted Federal health care reform legislation; adverse regulatory examinations and resulting enforcement actions or other adverse consequences such as increased capital requirements or higher deposit insurance assessments; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity.

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Risks Relating to New Product Introduction. TCF has introduced a new anchor retail deposit account product that replaces TCF Totally Free Checking, and that calls for a monthly maintenance fee on accounts not meeting certain specific requirements. TCF has also implemented new regulatory requirements that prohibit financial institutions from charging NSF fees on point-of-sale and ATM transactions unless customers opt-in. Customer acceptance of the new product changes and regulatory requirements cannot be predicted with certainty, and these changes may have an adverse impact on TCF’s ability to generate and retain accounts and on its fee revenue.

Litigation Risks. Results of litigation, including class action litigation concerning TCF’s lending or deposit activities including account servicing processes or fees or charges, or employment practices, and possible increases in indemnification obligations for certain litigation against Visa U.S.A. (“covered litigation”) and potential reductions in card revenues resulting from covered litigation or other litigation against Visa.

Competitive Conditions; Supermarket Branching Risk. Reduced demand for financial services and loan and lease products; adverse developments affecting TCF’s supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches.

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; adverse state or Federal tax assessments or findings in tax audits; lack of or inadequate insurance coverage for claims against TCF.

Technological and Operational Matters. Technological, computer-related or operational difficulties or loss or theft of information and the possibility that deposit account losses (fraudulent checks, etc.) may increase.

Investors should consult TCF’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K for additional important information about the Company.

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

Three Months Ended

December 31,

Change

2010

2009

Interest income:

Loans and leases

220,772

222,300

(1,528)

(.7)

Securities available for sale

18,072

20,035

(1,963)

(9.8)

Investments and other

1,900

1,160

740

63.8

Total interest income

240,744

243,495

(2,751)

(1.1)

Interest expense:

Deposits

13,370

21,171

(7,801)

(36.8)

Borrowings

53,088

52,683

405

Total interest expense

66,458

73,854

(7,396)

(10.0)

Net interest income

174,286

169,641

4,645

2.7

Provision for credit losses

77,646

77,389

257

Net interest income after provision for
credit losses

96,640

92,252

4,388

4.8

Non-interest income:

Fees and service charges

61,480

74,875

(13,395)

(17.9)

Card revenue

27,625

26,813

812

3.0

ATM revenue

6,985

7,006

(21)

(.3)

Subtotal

96,090

108,694

(12,604)

(11.6)

Leasing and equipment finance

23,402

24,408

(1,006)

(4.1)

Other

817

2,764

(1,947)

(70.4)

Fees and other revenue

120,309

135,866

(15,557)

(11.5)

Gains on securities, net

21,185

7,283

13,902

190.9

Total non-interest income

141,494

143,149

(1,655)

(1.2)

Non-interest expense:

Compensation and employee benefits

87,371

89,374

(2,003)

(2.2)

Occupancy and equipment

30,968

31,099

(131)

(.4)

FDIC insurance

7,398

5,288

2,110

39.9

Deposit account premiums

1,688

9,347

(7,659)

(81.9)

Advertising and marketing

3,154

3,789

(635)

(16.8)

Other

37,309

40,193

(2,884)

(7.2)

Subtotal

167,888

179,090

(11,202)

(6.3)

Foreclosed real estate and repossessed assets, net

12,781

12,537

244

1.9

Operating lease depreciation

8,289

10,750

(2,461)

(22.9)

Other credit costs, net

1,542

4,386

(2,844)

(64.8)

Total non-interest expense

190,500

206,763

(16,263)

(7.9)

Income before income tax expense

47,634

28,638

18,996

66.3

Income tax expense

16,011

9,385

6,626

70.6

Income after income tax expense

31,623

19,253

12,370

64.2

Income (loss) attributable to non-controlling interest

898

(203)

1,101

N.M.

Net income available to common stockholders

30,725

19,456

11,269

57.9

Net income per common share:

Basic

.22

.15

.07

46.7

Diluted

.22

.15

.07

46.7

Dividends declared per common share

.05

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

Basic

140,970

127,157

13,813

10.9

Diluted

141,216

127,203

14,013

11.0

N.M. Not meaningful.

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

Year Ended

December 31.

Change

2010

2009

Interest income:

Loans and leases

883,923

864,384

19,539

2.3

Securities available for sale

80,445

89,427

(8,982)

(10.0)

Investments and other

5,509

4,370

1,139

26.1

Total interest income

969,877

958,181

11,696

1.2

Interest expense:

Deposits

61,229

122,112

(60,883)

(49.9)

Borrowings

209,446

203,063

6,383

3.1

Total interest expense

270,675

325,175

(54,500)

(16.8)

Net interest income

699,202

633,006

66,196

10.5

Provision for credit losses

236,437

258,536

(22,099)

(8.5)

Net interest income after provision for
credit losses

462,765

374,470

88,295

23.6

Non-interest income:

Fees and service charges

273,181

286,908

(13,727)

(4.8)

Card revenue

111,067

104,770

6,297

6.0

ATM revenue

29,836

30,438

(602)

(2.0)

Subtotal

414,084

422,116

(8,032)

(1.9)

Leasing and equipment finance

89,194

69,113

20,081

29.1

Other

5,584

5,239

345

6.6

Fees and other revenue

508,862

496,468

12,394

2.5

Gains on securities, net

29,123

29,387

(264)

(.9)

Total non-interest income

537,985

525,855

12,130

2.3

Non-interest expense:

Compensation and employee benefits

352,861

356,996

(4,135)

(1.2)

Occupancy and equipment

126,551

126,292

259

FDIC insurance

23,584

19,109

4,475

23.4

Deposit account premiums

17,304

30,682

(13,378)

(43.6)

Advertising and marketing

13,062

17,134

(4,072)

(23.8)

Other

146,253

142,818

3,435

2.4

Subtotal

679,615

693,031

(13,416)

(1.9)

Foreclosed real estate and repossessed assets, net

40,385

31,886

8,499

26.7

Operating lease depreciation

37,106

22,368

14,738

65.9

Other credit costs, net

6,018

12,137

(6,119)

(50.4)

FDIC special assessment

8,362

(8,362)

(100.0)

Total non-interest expense

763,124

767,784

(4,660)

(.6)

Income before income tax expense

237,626

132,541

105,085

79.3

Income tax expense

87,765

45,854

41,911

91.4

Income after income tax expense

149,861

86,687

63,174

72.9

Income (loss) attributable to non-controlling interest

3,297

(410)

3,707

N.M.

Net income

146,564

87,097

59,467

68.3

Preferred stock dividends

6,378

(6,378)

(100.0)

Non-cash deemed preferred stock dividend

12,025

(12,025)

(100.0)

Net income available to common stockholders

146,564

68,694

77,870

113.4

Net income per common share:

Basic

1.05

.54

.51

94.4

Diluted

1.05

.54

.51

94.4

Dividends declared per common share

.20

.40

(.20)

(50.0)

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

Basic

138,617

126,593

12,024

9.5

Diluted

138,813

126,594

12,219

9.7

N.M. Not meaningful.

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

December 31,

Change

2010

2009

ASSETS

Cash and due from banks

663,901

299,127

364,774

121.9

Investments

179,768

163,692

16,076

9.8

Securities available for sale

1,931,174

1,910,476

20,698

1.1

Loans and leases:

Consumer real estate and other

7,195,269

7,331,991

(136,722)

(1.9)

Commercial real estate

3,328,216

3,269,003

59,213

1.8

Commercial business

317,987

449,516

(131,529)

(29.3)

Leasing and equipment finance

3,154,478

3,071,429

83,049

2.7

Inventory finance

792,354

468,805

323,549

69.0

Total loans and leases

14,788,304

14,590,744

197,560

1.4

Allowance for loan and lease losses

(265,819)

(244,471)

(21,348)

8.7

Net loans and leases

14,522,485

14,346,273

176,212

1.2

Premises and equipment, net

443,768

447,930

(4,162)

(.9)

Goodwill

152,599

Other assets

571,330

565,078

6,252

1.1

Total assets

18,465,025

17,885,175

579,850

3.2

LIABILITIES AND EQUITY

Deposits:

Checking

4,530,064

4,400,290

129,774

2.9

Savings

5,390,802

5,339,955

50,847

1.0

Money market

635,922

640,569

(4,647)

(.7)

Subtotal

10,556,788

10,380,814

175,974

1.7

Certificates of deposit

1,028,327

1,187,505

(159,178)

(13.4)

Total deposits

11,585,115

11,568,319

16,796

Short-term borrowings

126,790

244,604

(117,814)

(48.2)

Long-term borrowings

4,858,821

4,510,895

347,926

7.7

Total borrowings

4,985,611

4,755,499

230,112

4.8

Accrued expenses and other liabilities

414,136

381,602

32,534

8.5

Total liabilities

16,984,862

16,705,420

279,442

1.7

Equity:

Preferred stock, par value $.01 per share,
30,000,000 authorized; 0 shares issued

Common stock, par value $.01 per share,
280,000,000 shares authorized; 142,965,012
and 130,339,500 shares issued

1,430

1,303

127

9.7

Additional paid-in capital

459,884

297,429

162,455

54.6

Retained earnings, subject to certain restrictions

1,064,978

946,002

118,976

12.6

Accumulated other comprehensive loss

(31,514)

(18,545)

(12,969)

69.9

Treasury stock at cost, 51,160 and 1,136,688
shares, and other

(23,115)

(50,827)

27,712

(54.5)

Total TCF Financial Corp. stockholders’ equity

1,471,663

1,175,362

296,301

25.2

Non-controlling interest in subsidiaries

8,500

4,393

4,107

93.5

Total equity

1,480,163

1,179,755

300,408

25.5

Total liabilities and equity

18,465,025

17,885,175

579,850

3.2

N.M. Not meaningful.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

Change from

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Dec. 31,

2010

2009

2010

2009

Delinquency Data - Principal Balances (1)

60 days or more:

Consumer real estate

First mortgage lien

73,848

80,795

85,581

80,883

65,074

(6,947)

8,774

Junior lien

20,763

20,387

21,152

22,293

17,942

376

2,821

Total consumer real estate

94,611

101,182

106,733

103,176

83,016

(6,571)

11,595

Consumer other

131

105

215

(22)

(176)

Total consumer real estate and other

94,650

101,243

106,864

103,281

83,231

(6,593)

11,419

Commercial real estate

8,856

1,260

7,819

7,596

8,834

Commercial business

165

119

Leasing and equipment finance

5,054

4,346

5,817

9,869

11,263

708

(6,209)

Inventory finance

318

255

178

674

705

(387)

Subtotal

109,043

107,104

120,731

113,824

95,267

1,939

13,776

Acquired portfolios

6,000

5,618

8,078

9,185

10,862

382

(4,862)

Total delinquencies

115,043

112,722

128,809

123,009

106,129

2,321

8,914

Delinquency Data - % of Portfolio

60 days or more:

Consumer real estate

First mortgage lien

1.55

1.68

1.78

1.68

1.34

(13)

bps

Junior lien

.93

.90

.93

.98

.78

Total consumer real estate

1.35

1.43

1.51

1.45

1.16

(8)

Consumer other

.10

.14

.27

.22

.42

(4)

(32)

Total consumer real estate and other

1.35

1.42

1.50

1.44

1.16

(7)

Commercial real estate

.27

.04

.24

Commercial business

.06

.02

.01

Leasing and equipment finance

.19

.17

.23

.39

.44

(25)

Inventory finance

.05

.04

.03

.10

.19

(14)

Subtotal

.79

.78

.87

.82

.69

Acquired portfolios

1.00

.79

1.92

2.03

1.93

(93)

Total delinquencies

.80

.78

.90

.85

.74

(1) Excludes non-accrual loans and leases.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

NON-PERFORMING ASSET DATA

(Dollars in thousands)

(Unaudited)

Change from

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Dec. 31,

2010

2009

2010

2009

Non-Accrual Loans and Leases

Non-accrual loans and leases:

Consumer real estate

First mortgage lien

140,871

140,315

127,966

125,997

118,313

556

22,558

Junior lien

26,626

26,225

23,065

21,874

20,846

401

5,780

Total consumer real estate

167,497

166,540

151,031

147,871

139,159

957

28,338

Consumer other

177

141

(7)

(91)

Total consumer real estate and other

167,547

166,597

151,104

148,048

139,300

950

28,247

Commercial real estate

104,305

120,252

105,782

75,293

77,627

(15,947)

26,678

Commercial business

37,943

41,637

23,484

27,075

28,569

(3,694)

9,374

Leasing and equipment finance

34,407

40,455

48,777

54,099

50,008

(6,048)

(15,601)

Inventory finance

1,055

871

1,035

886

771

184

284

Total non-accrual loans and leases

345,257

369,812

330,182

305,401

296,275

(24,555)

48,982

Non-accrual loans and leases - rollforward

Balance, beginning of period

369,812

330,182

305,401

296,275

268,834

39,630

100,978

Additions

92,180

143,929

125,270

84,212

128,054

(51,749)

(35,874)

Charge-offs

(43,691)

(35,986)

(27,926)

(23,510)

(24,424)

(7,705)

(19,267)

Transfers to other assets

(42,094)

(39,457)

(36,936)

(29,601)

(44,114)

(2,637)

2,020

Return to accrual status

(17,989)

(15,785)

(12,593)

(11,111)

(15,283)

(2,204)

(2,706)

Payments received

(14,002)

(15,653)

(17,012)

(12,671)

(15,756)

1,651

1,754

Other, net

1,041

2,582

(6,022)

1,807

(1,036)

(1,541)

2,077

Balance, end of period

345,257

369,812

330,182

305,401

296,275

(24,555)

48,982

Charge-offs and allowance recorded on non-accrual loans and leases as a percentage of contractual balance

Consumer real estate

22.0

20.7

21.8

20.5

19.3

130

bps

270

bps

Commercial

43.1

28.1

26.8

28.6

25.7

1,500

1,740

Leasing and equipment finance

24.3

28.6

32.0

28.7

29.9

(430)

(560)

Inventory finance

17.5

19.5

19.6

2.9

(200)

1,460

Total

31.6

24.7

25.0

24.6

23.2

690

840

Other Real Estate Owned

Other real estate owned:

Consumer real estate

90,115

88,303

81,895

65,301

66,956

1,812

23,159

Commercial real estate

50,950

47,841

36,036

36,135

38,812

3,109

12,138

Total other real estate owned

141,065

136,144

117,931

101,436

105,768

4,921

35,297

Ending number of properties owned

Consumer real estate

813

740

657

569

504

309

Commercial real estate

(2)

(11)

Total

844

773

698

608

546

298

Other real estate owned - rollforward

Balance, beginning of period

136,144

117,931

101,436

105,768

94,167

18,213

41,977

Transferred in

44,948

41,506

37,369

28,209

46,325

3,442

(1,377)

Sales

(34,666)

(18,674)

(20,169)

(25,171)

(26,956)

(15,992)

(7,710)

Writedowns

(6,655)

(3,779)

(3,174)

(4,068)

(6,077)

(2,876)

(578)

Other, net

1,294

(840)

2,469

(3,302)

(1,691)

2,134

2,985

Balance, end of period

141,065

136,144

117,931

101,436

105,768

4,921

35,297

Charge-offs and writedowns recorded on other real estate owned as a percentage of contractual loan balance prior to non-performing status

Consumer

33.0

30.9

27.3

29.9

26.7

210

bps

630

bps

Commercial

26.6

30.9

34.6

34.2

27.8

(430)

(120)

Total

30.8

30.9

29.7

31.5

27.1

(10)

370

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

ALLOWANCE FOR LOAN AND LEASE LOSSES DATA

(Dollars in thousands)

(Unaudited)

Allowance for Loan and Lease Losses

At December 31, 2010

At September 30, 2010

At December 31, 2009

Change from

Sep. 30,

Dec. 31,

Balance

% of Portfolio

Balance

% of Portfolio

Balance

% of Portfolio

2010

2009

Consumer real estate

172,850

2.42%

169,743

2.35%

164,966

2.27%

7 bps

15 bps

Consumer other

1,653

4.22

2,069

4.74

2,476

4.82

(52)

(60)

Total consumer real estate and other

174,503

2.43

171,812

2.36

167,442

2.28

Commercial real estate

50,788

1.53

41,248

1.24

37,274

1.14

Commercial business

11,690

3.68

8,336

2.45

6,230

1.39

123

229

Leasing and equipment finance

26,301

.83

28,974

.92

32,063

1.04

(9)

(21)

Inventory finance

2,537

.32

2,750

.35

1,462

.31

(3)

Total

265,819

1.80

253,120

1.70

244,471

1.68

Credit Loss Reserves

At December 31, 2010

At September 30, 2010

At December 31, 2009

Change from

Sep. 30,

Dec. 31,

Balance

% of Portfolio

Balance

% of Portfolio

Balance

% of Portfolio

2010

2009

Allowance for loan and lease losses

265,819

1.80%

253,120

1.70%

244,471

1.68%

10 bps

12 bps

Reserves for unfunded commitments

2,353

N.M.

2,696

N.M.

3,850

N.M.

Total

268,172

1.81

255,816

1.72

248,321

1.70

Net Charge-Offs

Change from

Quarter Ended

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Dec. 31,

2010

2009

2010

2009

Consumer real estate

First mortgage lien

23,206

20,119

16,775

16,266

16,646

3,087

6,560

Junior lien

13,450

14,374

12,672

12,996

14,757

(924)

(1,307)

Total consumer real estate

36,656

34,493

29,447

29,262

31,403

2,163

5,253

Consumer other

1,316

1,737

1,622

365

2,219

(421)

(903)

Total consumer real estate and other

37,972

36,230

31,069

29,627

33,622

1,742

4,350

Commercial real estate

17,295

12,962

8,181

6,521

5,585

4,333

11,710

Commercial business

1,301

(136)

962

1,316

1,674

1,437

(373)

Leasing and equipment finance

7,814

8,674

7,514

6,643

7,681

(860)

133

Inventory finance

565

425

485

477

Total

64,947

57,810

47,800

44,532

48,650

7,137

16,297

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

Change from

Quarter Ended (1)

Quarter Ended

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Dec. 31,

2010

2009

2010

2009

Consumer real estate

First mortgage lien

1.88

1.63

1.36

1.32

1.34

bps

Junior lien

2.37

2.50

2.20

2.25

2.54

(13)

(17)

Total consumer real estate

2.04

1.91

1.63

1.61

1.73

Consumer other

N.M.

Total consumer real estate and other

2.10

2.00

1.71

1.63

1.84

Commercial real estate

2.08

1.56

.98

.80

.69

139

Commercial business

1.58

(.16)

.97

1.23

1.51

174

Leasing and equipment finance

.99

1.16

.99

.87

1.01

(17)

(2)

Inventory finance

.28

.05

.04

.31

.09

Total

1.75

1.58

1.30

1.22

1.35

(1) Annualized.

N.M. Not meaningful.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

Three Months Ended December 31,

2010

2009

Average
Balance

Interest

Yields and
Rates (1)

Average
Balance

Interest

Yields and
Rates (1)

ASSETS:

Investments and other

406,351

1,900

1.86%

176,487

1,160

2.62%

U.S. Government sponsored entities:

Mortgage-backed securities

1,729,928

18,005

4.16

1,497,672

17,707

4.73

Debentures

413,647

2,310

2.23

U.S. Treasury Bills

198,895

.13

67,932

.07

Other securities

431

3.69

483

4.94

Total securities available for sale(2)

1,929,254

18,072

3.75

1,979,734

20,035

4.05

Loans and leases:

Consumer real estate:

Fixed-rate

4,874,633

74,961

6.10

5,360,601

84,542

6.26

Variable-rate

2,322,623

30,737

5.25

1,914,750

27,182

5.63

Consumer - other

23,283

537

9.15

32,676

703

8.54

Total consumer real estate and other

7,220,539

106,235

5.84

7,308,027

112,427

6.11

Commercial real estate:

Fixed- and adjustable-rate

2,826,395

42,063

5.90

2,708,597

41,408

6.07

Variable-rate

496,224

5,408

4.32

532,672

5,451

4.06

Total commercial real estate

3,322,619

47,471

5.67

3,241,269

46,859

5.74

Commercial business:

Fixed- and adjustable-rate

120,742

1,551

5.10

152,784

2,189

5.68

Variable-rate

207,545

1,787

3.42

290,229

2,846

3.89

Total commercial business

328,287

3,338

4.03

443,013

5,035

4.51

Leasing and equipment finance

3,155,472

49,174

6.23

3,049,093

50,494

6.62

Inventory finance

803,157

14,554

7.19

383,291

7,485

7.81

Total loans and leases

14,830,074

220,772

5.92

14,424,693

222,300

6.13

Total interest-earning assets

17,165,679

240,744

5.58

16,580,914

243,495

5.84

Other assets

1,443,876

1,194,053

Total assets

18,609,555

17,774,967

LIABILITIES AND EQUITY:

Non-interest bearing deposits:

Retail

1,366,190

1,355,543

Small business

676,670

611,454

Commercial and custodial

291,295

297,223

Total non-interest bearing deposits

2,334,155

2,264,220

Interest-bearing deposits:

Checking

2,044,060

1,475

.29

1,868,911

1,731

.37

Savings

5,392,650

8,592

.63

5,214,318

12,484

.95

Money market

643,801

1,043

.64

671,755

1,288

.76

Subtotal

8,080,511

11,110

.55

7,754,984

15,503

.79

Certificates of deposit

1,040,348

2,260

.86

1,366,871

5,668

1.64

Total interest-bearing deposits

9,120,859

13,370

.58

9,121,855

21,171

.92

Total deposits

11,455,014

13,370

.46

11,386,075

21,171

.74

Borrowings:

Short-term borrowings

235,219

209

.35

240,981

101

.17

Long-term borrowings

4,746,823

52,879

4.42

4,511,311

52,582

4.63

Total borrowings

4,982,042

53,088

4.23

4,752,292

52,683

4.40

Total interest-bearing liabilities

14,102,901

66,458

1.87

13,874,147

73,854

2.11

Total deposits and borrowings

16,437,056

66,458

1.61

16,138,367

73,854

1.82

Other liabilities

674,827

447,597

Total liabilities

17,111,883

16,585,964

Total TCF Financial Corp. stockholders’ equity

1,490,342

1,184,947

Non-controlling interest in subsidiaries

7,330

4,056

Total equity

1,497,672

1,189,003

Total liabilities and equity

18,609,555

17,774,967

Net interest income and margin

174,286

4.04%

169,641

4.07%

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

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

Year Ended December 31,

2010

2009

Average
Balance

Interest

Yields and
Rates (1)

Average
Balance

Interest

Yields and
Rates (1)

ASSETS:

Investments and other

337,279

5,509

1.63%

375,396

4,370

1.16%

U.S. Government sponsored entities:

Mortgage-backed securities

1,817,413

80,332

4.42

1,645,544

80,902

4.92

Debentures

389,245

8,487

2.18

U.S. Treasury Bills

71,233

.13

17,123

.07

Other securities

454

4.41

494

5.26

Total securities available for sale(2)

1,889,100

80,445

4.26

2,052,406

89,427

4.36

Loans and leases:

Consumer real estate:

Fixed-rate

5,082,487

313,573

6.17

5,421,081

348,400

6.43

Variable-rate

2,148,171

116,437

5.42

1,862,267

106,988

5.75

Consumer - other

26,576

2,303

8.67

35,849

3,061

8.54

Total consumer real estate and other

7,257,234

432,313

5.96

7,319,197

458,449

6.26

Commercial real estate:

Fixed- and adjustable-rate

2,816,201

167,757

5.96

2,574,818

155,812

6.05

Variable-rate

495,433

21,559

4.35

561,881

22,544

4.01

Total commercial real estate

3,311,634

189,316

5.72

3,136,699

178,356

5.69

Commercial business:

Fixed- and adjustable-rate

140,498

7,447

5.30

166,745

9,581

5.75

Variable-rate

234,892

8,521

3.63

308,929

10,644

3.45

Total commercial business

375,390

15,968

4.25

475,674

20,225

4.25

Leasing and equipment finance

3,056,006

196,445

6.43

2,826,835

192,557

6.81

Inventory finance

677,214

49,881

7.37

179,990

14,797

8.22

Total loans and leases

14,677,478

883,923

6.02

13,938,395

864,384

6.20

Total interest-earning assets

16,903,857

969,877

5.74

16,366,197

958,181

5.85

Other assets

1,286,683

1,157,314

Total assets

18,190,540

17,523,511

LIABILITIES AND EQUITY:

Non-interest bearing deposits:

Retail

1,429,436

1,402,442

Small business

641,412

584,605

Commercial and custodial

284,750

265,681

Total non-interest bearing deposits

2,355,598

2,252,728

Interest-bearing deposits:

Checking

2,071,990

6,466

.31

1,802,694

8,137

.45

Savings

5,410,681

40,023

.74

4,732,316

58,556

1.24

Money market

656,691

4,532

.69

683,030

7,006

1.03

Subtotal

8,139,362

51,021

.63

7,218,040

73,699

1.02

Certificates of deposit

1,054,179

10,208

.97

1,915,467

48,413

2.53

Total interest-bearing deposits

9,193,541

61,229

.67

9,133,507

122,112

1.34

Total deposits

11,549,139

61,229

.53

11,386,235

122,112

1.07

Borrowings:

Short-term borrowings

124,891

474

.38

85,228

233

.27

Long-term borrowings

4,580,786

208,972

4.56

4,373,182

202,830

4.64

Total borrowings

4,705,677

209,446

4.45

4,458,410

203,063

4.55

Total interest-bearing liabilities

13,899,218

270,675

1.95

13,591,917

325,175

2.39

Total deposits and borrowings

16,254,816

270,675

1.66

15,844,645

325,175

2.05

Other liabilities

511,589

416,555

Total liabilities

16,766,405

16,261,200

Total TCF Financial Corp. stockholders’ equity

1,415,161

1,261,219

Non-controlling interest in subsidiaries

8,974

1,092

Total equity

1,424,135

1,262,311

Total liabilities and equity

18,190,540

17,523,511

Net interest income and margin

699,202

4.14%

633,006

3.87%

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

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME AND FINANCIAL RATIOS

(Dollars in thousands, except per-share data)

(Unaudited)

At or For the Three Months Ended

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

2010

2009

Interest income:

Loans and leases

220,772

219,974

221,913

221,264

222,300

Securities available for sale

18,072

19,901

21,065

21,407

20,035

Investments and other

1,900

1,232

1,236

1,141

1,160

Total interest income

240,744

241,107

244,214

243,812

243,495

Interest expense:

Deposits

13,370

13,974

16,281

17,604

21,171

Borrowings

53,088

53,378

51,434

51,546

52,683

Total interest expense

66,458

67,352

67,715

69,150

73,854

Net interest income

174,286

173,755

176,499

174,662

169,641

Provision for credit losses

77,646

59,287

49,013

50,491

77,389

Net interest income after provision for credit losses

96,640

114,468

127,486

124,171

92,252

Non-interest income:

Fees and service charges

61,480

67,684

77,845

66,172

74,875

Card revenue

27,625

27,779

28,591

27,072

26,813

ATM revenue

6,985

7,985

7,844

7,022

7,006

Subtotal

96,090

103,448

114,280

100,266

108,694

Leasing and equipment finance

23,402

24,912

20,528

20,352

24,408

Other

817

1,077

1,235

2,455

2,764

Fees and other revenue

120,309

129,437

136,043

123,073

135,866

Gains (losses) on securities, net

21,185

8,505

(137)

(430)

7,283

Total non-interest income

141,494

137,942

135,906

122,643

143,149

Non-interest expense:

Compensation and employee benefits

87,371

90,282

86,983

88,225

89,374

Occupancy and equipment

30,968

32,091

31,311

32,181

31,099

FDIC insurance

7,398

5,486

5,219

5,481

5,288

Deposit account premiums

1,688

3,340

5,478

6,798

9,347

Advertising and marketing

3,154

3,354

3,734

2,820

3,789

Other

37,309

39,481

35,053

34,410

40,193

Subtotal

167,888

174,034

167,778

169,915

179,090

Foreclosed real estate and repossessed assets, net

12,781

9,588

8,756

9,260

12,537

Operating lease depreciation

8,289

8,965

9,812

10,040

10,750

Other credit costs, net

1,542

(834)

2,723

2,587

4,386

Total non-interest expense

190,500

191,753

189,069

191,802

206,763

Income before income tax expense

47,634

60,657

74,323

55,012

28,638

Income tax expense

16,011

22,852

28,112

20,790

9,385

Income after income tax expense

31,623

37,805

46,211

34,222

19,253

Income (loss) attributable to non-controlling interest

898

912

1,186

301

(203)

Net income available to common stockholders

30,725

36,893

45,025

33,921

19,456

Net income per common share:

Basic

.22

.26

.32

.26

.15

Diluted

.22

.26

.32

.26

.15

Dividends declared per common share

.05

Financial Ratios: (1)

Return on average assets

.68

.84

1.02

.76

.43

Return on average common equity

8.25

9.95

12.71

10.68

6.57

Net interest margin

4.04

4.12

4.18

4.20

4.07

(1)

Annualized.

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS

(In thousands)

(Unaudited)

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

2010

2009

ASSETS

Cash and due from banks

506,244

420,674

458,598

388,969

297,758

Investments

176,795

162,034

158,956

160,630

158,764

U.S. Government sponsored entities:

Mortgage-backed securities

1,907,958

1,767,410

1,860,233

1,885,076

1,497,672

Debentures

413,647

U.S. Treasury Bills

199,330

69,705

14,167

67,932

Other securities

2,945

3,473

4,358

5,105

540

Total securities available for sale

2,110,233

1,840,588

1,878,758

1,890,181

1,979,791

Loans and leases:

Consumer real estate:

Fixed-rate

4,874,633

5,019,925

5,152,954

5,287,660

5,360,601

Variable-rate

2,322,623

2,213,091

2,081,247

1,971,145

1,914,750

Consumer - other

23,283

25,130

27,584

30,406

32,676

Total consumer real estate and other

7,220,539

7,258,146

7,261,785

7,289,211

7,308,027

Commercial real estate:

Fixed- and adjustable-rate

2,826,395

2,830,748

2,824,233

2,782,787

2,708,597

Variable-rate

496,224

496,669

498,753

490,006

532,672

Total commercial real estate

3,322,619

3,327,417

3,322,986

3,272,793

3,241,269

Commercial business:

Fixed- and adjustable-rate

120,742

125,206

152,488

164,204

152,784

Variable-rate

207,545

221,225

246,341

265,238

290,229

Total commercial business

328,287

346,431

398,829

429,442

443,013

Leasing and equipment finance

3,155,472

3,002,714

3,021,532

3,043,664

3,049,093

Inventory finance

803,157

655,485

692,816

553,095

383,291

Total loans and leases

14,830,074

14,590,193

14,697,948

14,588,205

14,424,693

Allowance for loan and lease losses

(251,904)

(251,603)

(249,553)

(245,154)

(218,967)

Net loans and leases

14,578,170

14,338,590

14,448,395

14,343,051

14,205,726

Premises and equipment, net

446,527

447,364

444,652

447,765

449,738

Goodwill

152,599

Other assets

638,987

672,573

592,381

605,355

530,591

Total assets

18,609,555

18,034,422

18,134,339

17,988,550

17,774,967

LIABILITIES AND EQUITY

Non-interest-bearing deposits:

Retail

1,366,190

1,408,984

1,480,896

1,462,962

1,355,543

Small business

676,670

659,165

631,495

597,249

611,454

Commercial and custodial

291,295

279,475

289,384

278,827

297,223

Total non-interest bearing deposits

2,334,155

2,347,624

2,401,775

2,339,038

2,264,220

Interest-bearing deposits:

Checking

2,044,060

2,014,550

2,145,260

2,085,175

1,868,911

Savings

5,392,650

5,426,481

5,477,044

5,345,862

5,214,318

Money market

643,801

654,030

660,654

668,581

671,755

Subtotal

8,080,511

8,095,061

8,282,958

8,099,618

7,754,984

Certificates of deposit

1,040,348

1,006,685

1,044,008

1,127,149

1,366,871

Total interest-bearing deposits

9,120,859

9,101,746

9,326,966

9,226,767

9,121,855

Total deposits

11,455,014

11,449,370

11,728,741

11,565,805

11,386,075

Borrowings:

Short-term borrowings

235,219

40,646

26,665

197,319

240,981

Long-term borrowings

4,746,823

4,587,964

4,485,283

4,500,285

4,511,311

Total borrowings

4,982,042

4,628,610

4,511,948

4,697,604

4,752,292

Accrued expenses and other liabilities

674,827

463,492

464,276

448,233

447,597

Total liabilities

17,111,883

16,541,472

16,704,965

16,711,642

16,585,964

Equity:

Preferred stock

Common stock

1,428

1,426

1,425

1,353

1,304

Additional paid-in capital

456,760

451,570

451,942

360,517

302,209

Retained earnings, subject to certain restrictions

1,052,092

1,025,631

990,018

957,596

938,504

Accumulated other comprehensive income (loss)

3,089

28,861

3,854

(6,224)

1,040

Treasury stock at cost and other

(23,027)

(23,923)

(30,219)

(43,185)

(58,110)

Total TCF Financial Corp. stockholders equity

1,490,342

1,483,565

1,417,020

1,270,057

1,184,947

Non-controlling interest in subsidiaries

7,330

9,385

12,354

6,851

4,056

Total equity

1,497,672

1,492,950

1,429,374

1,276,908

1,189,003

Total liabilities and equity

18,609,555

18,034,422

18,134,339

17,988,550

17,774,967

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY YIELDS AND RATES (1)

(Unaudited)

	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,
	2010		2010		2010		2010		2009

ASSETS

Investments and other	1.86	%	1.59	%	1.40	%	1.64	%	2.62	%
U.S. Government sponsored entities:
Mortgage-backed securities	4.16		4.43		4.53		4.54		4.73
Debentures	-		-		-		-		2.23
U.S. Treasury Bills	.13		.13		.21		-		.07
Other securities	.54		.57		.46		.47		4.42
Total securities available for sale	3.74		4.26		4.48		4.54		4.05
Loans and leases:
Consumer real estate:
Fixed-rate	6.10		6.16		6.16		6.25		6.26
Variable-rate	5.25		5.36		5.49		5.62		5.63
Consumer - other	9.15		8.92		8.23		8.47		8.54
Total consumer real estate and other	5.84		5.93		5.98		6.09		6.11
Commercial real estate:
Fixed- and adjustable-rate	5.90		5.90		5.96		6.06		6.07
Variable-rate	4.32		4.35		4.34		4.40		4.06
Total commercial real estate	5.67		5.67		5.72		5.81		5.74
Commercial business:
Fixed- and adjustable-rate	5.10		4.73		5.58		5.64		5.68
Variable-rate	3.42		3.48		3.80		3.76		3.89
Total commercial business	4.03		3.93		4.48		4.48		4.51
Leasing and equipment finance	6.23		6.40		6.51		6.57		6.62
Inventory finance	7.19		7.57		7.34		7.33		7.81
Total loans and leases	5.92		5.99		6.05		6.13		6.13

Total interest-earning assets	5.58		5.72		5.78		5.87		5.84

LIABILITIES

Interest-bearing deposits:
Checking	.29		.29		.32		.35		.37
Savings	.63		.66		.79		.87		.95
Money market	.64		.65		.71		.76		.76
Subtotal	.55		.57		.66		.73		.79
Certificates of deposit	.86		.93		.99		1.08		1.64
Total interest-bearing deposits	.58		.61		.70		.77		.92
Total deposits	.46		.48		.56		.62		.74

Borrowings:
Short-term borrowings	.35		.82		1.19		.21		.17
Long-term borrowings	4.42		4.61		4.59		4.63		4.63
Total borrowings	4.23		4.58		4.57		4.44		4.40

Total interest-bearing liabilities	1.87		1.95		1.96		2.01		2.11

Net interest margin	4.04	%	4.12	%	4.18	%	4.20	%	4.07	%

(1) Annualized.

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (1)

(Dollars in thousands)

(Unaudited)

	At Dec. 31,			At Dec. 31,
	2010			2009
Computation of total equity to total assets:
Total equity	$	1,480,163		$	1,179,755
Total assets	$	18,465,025		$	17,885,175
Total equity to total assets	8.02		%	6.60		%

Computation of tangible realized common equity to tangible assets:
Total equity	$	1,480,163		$	1,179,755
Less: Non-controlling interest in subsidiaries	8,500			4,393
Total TCF Financial Corp. stockholders’ equity	1,471,663			1,175,362
Less:
Goodwill	152,599			152,599
Other intangibles	1,232			1,405
Add:
Accumulated other comprehensive loss	31,514			18,545
Tangible realized common equity	$	1,349,346		$	1,039,903

Total assets	$	18,465,025		$	17,885,175
Less:
Goodwill	152,599			152,599
Other intangibles	1,232			1,405
Tangible assets	$	18,311,194		$	17,731,171

Tangible realized common equity to tangible assets	7.37		%	5.86		%


	At Dec. 31,			At Dec. 31,
	2010			2009
Computation of tier 1 risk-based capital ratio:
Total tier 1 capital	$	1,475,525		$	1,161,750
Total risk-weighted assets	$	13,929,097		$	13,627,871
Total tier 1 risk-based capital ratio	10.59		%	8.52		%

Computation of tier 1 common capital ratio:
Total tier 1 capital	$	1,475,525		$	1,161,750
Less:
Qualifying trust preferred securities	115,000			115,000
Qualifying non-controlling interest in subsidiaries	8,500			4,393
Total tier 1 common capital	$	1,352,025		$	1,042,357

Total tier 1 common capital ratio	9.71		%	7.65		%

(1) In contrast to GAAP-basis and regulatory capital-basis measures, tangible realized common equity excludes the effect of goodwill, other intangibles and accumulated other comprehensive income (loss) and the total tier 1 common capital ratio excludes the effect of qualifying trust preferred securities and qualifying non-controlling interest in subsidiaries. Management reviews these ratios as ongoing measures and has included this information because of current interest in the industry. The methodology for calculating these ratios may vary between companies.

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Attached files

TCF FINANCIAL CORP Reports

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