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| 8-K - 8-K - TCF FINANCIAL CORP | tcffinancial93016form8-kin.htm |
2016 Third Quarter Investor Presentation
Exhibit 99.1
2
Cautionary Statements for Purposes of the Safe
Harbor Provisions of the Securities Litigation
Reform Act
Any statements contained in this investor presentation regarding the outlook for the Company's businesses and their respective markets, such as
projections of future performance, guidance, statements of the Company's plans and objectives, forecasts of market trends and other matters, are forward-
looking statements based on the Company's assumptions and beliefs. Such statements may be identified by such words or phrases as "will likely result,"
"are expected to," "will continue," "outlook," "will benefit," "is anticipated," "estimate," "project," "management believes" or similar expressions. These
forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed in such
statements and no assurance can be given that the results in any forward-looking statement will be achieved. For these statements, TCF claims the
protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any forward-looking statement
speaks only as of the date on which it is made, and we disclaim any obligation to subsequently revise any forward-looking statement to reflect events or
circumstances after such date or to reflect the occurrence of anticipated or unanticipated events.
Certain factors could cause the Company's future results to differ materially from those expressed or implied in any forward-looking statements contained
herein. These factors include the factors discussed in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31,
2015 under the heading "Risk Factors", the factors discussed below and any other cautionary statements, written or oral, which may be made or referred
to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as
complete or exhaustive.
Adverse Economic or Business Conditions; Competitive Conditions; Credit and Other Risks. Deterioration in general economic and banking industry
conditions, including those arising from government shutdowns, defaults, anticipated defaults or rating agency downgrades of sovereign debt (including
debt of the U.S.), or increases in unemployment; adverse economic, business and competitive developments such as shrinking interest margins, reduced
demand for financial services and loan and lease products, deposit outflows, increased deposit costs due to competition for deposit growth and evolving
payment system developments, deposit account attrition or an inability to increase the number of deposit accounts; customers completing financial
transactions without using a bank; adverse changes in credit quality and other risks posed by TCF's loan, lease, investment, securities held to maturity
and securities available for sale portfolios, including declines in commercial or residential real estate values, changes in the allowance for loan and lease
losses dictated by new market conditions or regulatory requirements, or the inability of home equity line borrowers to make increased payments caused
by increased interest rates or amortization of principal; deviations from estimates of prepayment rates and fluctuations in interest rates that result in
decreases in the value of assets such as interest-only strips that arise in connection with TCF's loan sales activity; interest rate risks resulting from
fluctuations in prevailing interest rates or other factors that result in a mismatch between yields earned on TCF's interest-earning assets and the rates
paid on its deposits and borrowings; foreign currency exchange risks; counterparty risk, including the risk of defaults by our counterparties or diminished
availability of counterparties who satisfy our credit quality requirements; decreases in demand for the types of equipment that TCF leases or finances;
the effect of any negative publicity.
Legislative and Regulatory Requirements. New consumer protection and supervisory requirements and regulations, including those resulting from action
by the Consumer Financial Protection Bureau and changes in the scope of Federal preemption of state laws that could be applied to national banks and
their subsidiaries; the imposition of requirements that adversely impact TCF's deposit, lending, loan collection and other business activities such as
mortgage foreclosure moratorium laws, further regulation of financial institution campus banking programs, use by municipalities of eminent domain on
property securing troubled residential mortgage loans, or imposition of underwriting or other limitations that impact the ability to offer certain
(continued)
Cautionary Statements for Purposes of the Safe
Harbor Provisions of the Securities Litigation
Reform Act (cont)
variable-rate products; changes affecting customer account charges and fee income, including changes to interchange rates; regulatory actions or changes
in customer opt-in preferences with respect to overdrafts, which may have an adverse impact on TCF; changes to bankruptcy laws which would result in
the loss of all or part of TCF's security interest due to collateral value declines; deficiencies in TCF's compliance under the Bank Secrecy Act in past or future
periods, which may result in regulatory enforcement action including monetary penalties; increased health care costs resulting from Federal health care
reform; regulatory criticism and resulting enforcement actions or other adverse consequences such as increased capital requirements, higher deposit
insurance assessments or monetary damages or penalties; heightened regulatory practices, requirements or expectations, including, but not limited to,
requirements related to enterprise risk management, the Bank Secrecy Act and anti-money laundering compliance activity.
Earnings/Capital Risks and Constraints, Liquidity Risks. Limitations on TCF's ability to pay dividends or to increase dividends because of financial performance
deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to adverse conditions
in the banking industry; the impact on banks of regulatory reform, including additional capital, leverage, liquidity and risk management requirements or
changes in the composition of qualifying regulatory capital; adverse changes in securities markets directly or indirectly affecting TCF's ability to sell assets
or to fund its operations; diminished unsecured borrowing capacity resulting from TCF credit rating downgrades or unfavorable conditions in the credit
markets that restrict or limit various funding sources; costs associated with new regulatory requirements or interpretive guidance relating to liquidity;
uncertainties relating to future retail deposit account changes, including limitations on TCF's ability to predict customer behavior and the impact on TCF's
fee revenues.
Branching Risk; Growth Risks. Adverse developments affecting TCF's supermarket banking relationships or any of the supermarket chains in which TCF
maintains supermarket branches; costs related to closing underperforming branches; 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 cross-selling opportunities; failure to expand or diversify TCF's balance sheet through new or expanded programs or opportunities; failure
to successfully attract and retain new customers, including the failure to attract and retain manufacturers and dealers to expand the inventory finance
business; failure to effectuate, and risks of claims related to, sales and securitizations of loans; risks related to new product additions and addition of
distribution channels (or entry into new markets) for existing products.
Technological and Operational Matters. Technological or operational difficulties, loss or theft of information, cyber-attacks and other security breaches,
counterparty failures and the possibility that deposit account losses (fraudulent checks, etc.) may increase; failure to keep pace with technological change,
including the failure to develop and maintain technology necessary to satisfy customer demands; ability to attract and retain employees given competitive
conditions.
Litigation Risks. Results of litigation or government enforcement actions, including class action litigation or enforcement actions concerning TCF's lending
or deposit activities, including account opening/origination, servicing practices, fees or charges, employment practices, or checking account overdraft program
"opt in" requirements; and possible increases in indemnification obligations for certain litigation against Visa U.S.A.
Accounting, Audit, Tax and Insurance Matters. Changes in accounting standards or interpretations of existing standards; federal or state monetary, fiscal
or tax policies, including adoption of state legislation that would increase state taxes; ineffective internal controls; adverse federal, state or foreign tax
assessments or findings in tax audits; lack of or inadequate insurance coverage for claims against TCF; potential for claims and legal action related to TCF's
fiduciary responsibilities.
3
Who We Are – A Unique Regional Bank
4
LENDING
• Well-diversified portfolio by asset type,
geography, industry, loan size and
collateral type
• Expertise in diverse lending businesses
• Flexible growth opportunities due to
strong origination capabilities and proven
loan sale and securitization strategy
FUNDING
• Loan and lease growth funded primarily
by low cost, core deposit base
• High concentration of low balance, FDIC-
insured retail accounts
• Convenience banking model based on
branch locations, hours of operation,
ATMs and digital channels
PROFITABILITY
• Strong net interest margin due to high loan and lease yields and low cost funding
• Diverse lending businesses with attractive spreads
• Stable credit quality due to diversification strategy and a disciplined approach to pricing
and underwriting
Diversification – Focus on national versus footprint lending
increases quality and diversification of portfolio
Profitable Growth – Strong origination, loan sale and securitization
capabilities drive loan growth and revenue diversification with a
continued high net interest margin
Operating Leverage – Focus on improving operating leverage
following recent build-out of key functions
Core Funding – Maintain sufficient funding sources to support loan
and lease growth
Strategic Pillars
5
1
2
3
4
Execution under a strong enterprise risk management
and credit culture
Consumer real
estate & other
(first mortgage
lien) 12%
Consumer real estate
(junior lien) 14%
Auto finance
14%
Leasing & equipment finance 22%
Commercial
16%
Inventory finance
12%
Securities & other
10%
Corporate Profile
Savings
27%
Money market
14%
Checking
34%
Certificates of
deposit 25%
• $21.1 billion national bank holding
company headquartered in Minnesota
• 47th largest publicly-traded U.S.
based bank holding company by
asset size1
• 341 bank branches in seven states
• Approximately 147,300 small business
banking relationships:
• 68,600 checking accounts
• 78,700 lending relationships
• Average loan and lease portfolio makes
up 82% of average total assets
• Common equity ratio of 10.29%
• Book value per common share of $12.69
• Return on average common equity of
9.39%2
6
($ millions)
1 Source: SNL Financial (June 30, 2016)
2 YTD annualized
($ millions)
At September 30, 2016
3Q16 Yield
of 4.76%2
3Q16 Rate
of 0.37%2
$4,670
$5,830
$2,451
$4,283
$2,331
$3,150
$4,236
$2,732
$2,675
$2,261
$2,051
A WELL-DIVERSIFIED EARNING ASSET PORTFOLIO…
…FUNDED BY A LOW COST DEPOSIT BASE
7
Well Positioned vs. Peers
1 Annualized
2 All U.S. publicly-traded banks and thrifts, excluding TCF, with total assets between $10 and $50 billion (source: SNL Financial)
3 Excluding non-recurring items for non-interest income and revenue
4 Presented on a fully tax-equivalent basis
5 Includes loans held for sale
6 Estimated based on consolidated bank level deposit data
5
TCF
3Q161
Peer Group
2Q16
Average1,2,3 TCF BUSINESS MODEL ATTRIBUTES
Revenue as a % of
average assets 6.31% 4.35%
• Exceptional revenue generation capabilities through diverse sources
including net interest income, banking fees and non-interest income
from fee generating businesses
Return on average
assets 1.12% 0.97%
• Emphasis on generating profitable growth
Yield on loans and
leases4 4.88% 4.35%
•
•
Strong execution on pricing allows for growth with consistent yields
without expanding the credit box
Niche lending businesses help maintain yield in a competitive
environment
Average loans and
leases as a % of
average assets
82.4% 67.2%
•
•
Unique mix of loan and lease businesses provide ample and flexible
origination capabilities
Organic loan and lease growth opportunities can be achieved while
maintaining discipline on price, structure and credit quality
Insured deposits as
a % of total
deposits6
94% 62%
•
•
Insured deposits provide a competitive advantage from a pricing and
balance perspective
Preferred deposit composition primarily made up of low balance,
retail deposits which have the highest liquidity value
Net charge-offs (%) 0.26% 0.24%
• Net charge-offs in-line with peers
• Wholesale portfolio with strong credit quality, 10 bps of net charge-offs in 3Q16, having a stronger influence on consolidated credit
quality
5
8
Revenue up 4.5% YoY
Investments and other 1%
Consumer real estate & other
(first mortgage lien) 14%
Consumer
real estate
(junior lien)
17%
Auto
finance
12%Leasing and
equipment
finance 20%
Commercial
13%
Inventory
finance 15%
Loans and leases
held for sale 5%
Securities 3%
350
300
250
200
150
100
50
0
5.25%
5.00%
4.75%
4.50%
4.25%
4.00%
3Q15 4Q15 1Q16 2Q16 3Q16
$112
$318
$116
$321
$113
$324
$118
$331
$120
$332
4.40% 4.35% 4.37% 4.35% 4.34%
Net Interest Margin1
1 Annualized
3Q16 vs. 2Q16 revenue and net interest
margin impacted by:
• Increased non-interest income related to gains on
sales for both consumer real estate and auto
loans
• Increased servicing fee income
• Consistent loan and lease yields and interest
rates on deposits
Third Quarter 2016
Highlights – Revenue
REVENUE DIVERSIFICATION
$233 million
Non-interest Income
Interest Income
($ millions)
$206 $205 $211 $213 $212
Non-interest Income
Net Interest Income
$120 million
Other 1%
Fees and
service
charges 29%
ATM
revenue
4%
Card
revenue
12%
Leasing and
equipment
finance 24%
Gains on sales of
consumer real estate
loans, net 11%
Gains on sales of
auto loans, net
10%
Servicing
fee income
9%
Strategic Pillars
Diversification 1
Profitable Growth 2
9
• Leveraging of expense base
through continued growth of total
average assets and average
serviced for others portfolio
• Compensation and employee
benefits expense remained
consistent year-over-year despite
a 9.3% increase in total average
assets and average serviced for
others portfolio
• Focus on lowering efficiency ratio
by growing revenue faster than
expenses
Expense as % of Total Avg
Assets & Avg Serviced for
Others Portfolio2: 3.73% 3.65% 3.61%
1 Includes Occupancy & Equipment, FDIC Insurance, Advertising & Marketing, Other Non-interest Expenses, Foreclosed Real Estate & Repossessed Assets,
and Other Credit Costs
2 Annualized
Total Avg Assets & Avg
Serviced for Others
Portfolio: $23,857 $24,371 $25,317 $25,892
3.51%
$26,085
3.51%
Non-interest Expense
250
200
150
100
50
0
3Q15 4Q15 1Q16 2Q16 3Q16
$117 $109 $124 $118 $117
$96 $100
$94 $99 $102
$9
$222
$14
$223
$10
$228
$10
$227
$10
$229
Compensation & Employee Benefits
Foreclosed Real Estate and Other Credit Cost
Compensation & Employee Benefits
350
300
250
200
150
100
50
0
$
(M
ill
io
ns
)
6/14 9/14 12/14 3/15 6/15
($ millions)
Operating Lease Depreciation
Other 1
Compensation & Employee Benefits
Efficiency Ratio: 70.0% 69.3% 70.4% 68.7% 69.0%
Strategic Pillars
Profitable Growth 2
Operating Leverage 3
Non-interest expense
up 3.0% YoY
Achieving Higher Credit Quality
Loan Growth via National Lending
10
FOOTPRINT
LENDING
Loan growth
requires
originations up
and down the
entire credit box
with potential
concessions on
pricing and terms
NATIONAL LENDING
Ability to profitably grow loans through originations at
the top of the credit box across all geographies
Higher
Credit
Quality
Lower
Credit
Quality
Geographic Exposure
Origination
Opportunities
IL, MN, MI, CO,
WI, AZ, SD Other States and Canada
Strategic Pillars
Diversification 1
Profitable Growth 2
11
PROVISION FOR CREDIT LOSSES
250
200
150
100
50
0
2012 2013 2014 2015 YTD 3Q16
$247
$118
$96
$53 $46
1 Excludes acquired portfolios and non-accrual loans and leases
2 Annualized
($ millions)
Credit Quality Trends
0.70%
0.60%
0.50%
0.40%
0.30%
0.20%
0.10%
0.00%
12/12 12/13 12/14 12/15 9/16
0.64%
0.19%
0.14% 0.11% 0.11%
1.80%
1.50%
1.20%
0.90%
0.60%
0.30%
0.00%
2012 2013 2014 2015 YTD 3Q16
1.54%
0.81%
0.49%
0.30% 0.25%
500
400
300
200
100
0
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
12/12 12/13 12/14 12/15 9/16
$476
$346
$282 $250 $2243.07% 2.17% 1.71% 1.43% 1.28%
($ millions)
2
60+ DAY DELINQUENCIES1
NET CHARGE-OFF RATIONON-PERFORMING ASSETS
Other Real Estate Owned
Non-accrual Loans & Leases
NPAs/Loans & Leases and Other Real Estate Owned
Strategic Pillar
Diversification 1
12
9/15 12/15 3/16 6/16 9/16
$17,201 $17,436 $17,472
15%
18%
22%
16%
15%
14%
13%
18%
23%
15%
16%
15%
13%
18%
24%
16%
15%
14%
• Portfolio flexibility as third
quarter annualized loan and
lease growth would have
been 22% if all loans were
held on the balance sheet
• Superior loan and lease
diversification
• Additional loan and lease
diversification by geography,
rate, average loan size,
estimated weighted average
life and collateral type
55%
Wholesale
45%
Consumer
Loan and Lease Portfolio
12
($ millions)
13%
18%
22%
14%
17%
16%
Inventory Finance
Leasing & Equipment Finance
Commercial
Auto Finance
Consumer Real Estate - Junior Lien
Consumer Real Estate & Other - First Mortgage Lien
$17,853
13%
18%
24%
16%
15%
14%
Strategic Pillar
Diversification 1
Loan and lease growth of
1.1% YoY
$17,385
13
• Organic loan and lease portfolio
growth opportunities can be achieved
while maintaining discipline on price,
structure and credit quality
• Consistent loan and lease originations,
averaging $4.1 billion over the last 5
quarters
• Inventory Finance origination levels
are impacted by the velocity of
fundings and repayments with dealers
• Asset classes have different levels and
timing of origination seasonality
Diverse Loan and Lease
Origination Capabilities
Strategic Pillars
Diversification 1
Profitable Growth 2
($ millions)
Inventory Finance
Leasing & Equipment Finance1
Commercial
Auto Finance
Consumer Real Estate
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
3Q15 4Q15 1Q16 2Q16 3Q16
$654 $567 $482 $696 $728
$788 $807 $915
$904 $881
$527 $584 $415
$567 $562
$458 $564
$415
$451 $502
$1,470
$3,897
$1,323
$3,845
$1,805
$4,032
$1,660
$4,278
$1,562
$4,235
1 Includes operating leases
Loan and lease originations
up 8.7% YoY
14
Other
Auto
Consumer Real Estate & Other Consumer
1,200
1,000
800
600
400
200
0
3Q15 4Q15 1Q16 2Q16 3Q16
$246 $389 $321 $345 $437
$437 $271 $444
$533
$615$703
$899
($ millions)
• Core competency since
4Q11
• Provides flexibility to the
organization:
• Diversifies areas of product
and geographic
concentration
• Supports capital and
liquidity
• Provides additional revenue
source
Loan and Lease Sales
and Revenue
$673
$777
$1,061
40
30
20
10
0
3Q15 4Q15 1Q16 2Q16 3Q16
$8 $8 $9 $9 $10
$7 $13 $9 $11
$14
$11
$26
$4
$25
$12
$30
$10
$30
$12
$36
LOAN AND LEASE SALES
IMPACT ON REVENUE
Servicing Fee Income
Gains on Sales of Auto Loans, Net
Gains on Sales of Consumer Real Estate Loans, Net
Strategic Pillars
Diversification 1
Profitable Growth 2
($ millions)
15
12
9
6
3
0
3Q15 4Q15 1Q16 2Q16 3Q16
$8.0 $8.6 $8.9
$9.5 $10.4
24,000
20,000
16,000
12,000
8,000
4,000
0
3Q15 4Q15 1Q16 2Q16 3Q16
$17,409 $17,642 $18,258 $18,356 $18,024
$3,976
$21,385
$4,167
$21,809
$4,386
$22,644
$4,685
$23,041
$5,059
$23,083
Servicing Fee Income
Serviced for Others Portfolio
Portfolio Loans and Leases & Loans and Leases Held for Sale • Serviced for others portfolio
primarily includes auto
loans and consumer real
estate loans sold with
servicing rights retained by
TCF
• Loan sale and servicing
strategy contributes to
revenue through gains on
sales of loans and ongoing
servicing fees:
• $1.1 billion of loan sales for
a gain of $26.6 million in
3Q16
• Year-over-year servicing
fee income growth of 29%
1 Includes operating leases
Managed Portfolio
1
Average
Balances
($ millions)
Strategic Pillars
Profitable Growth 2
Operating Leverage 3
($ millions)
16
COMBINATION OF DIVERSIFICATION AND DISCIPLINED
PRICING HAS CREATED CONSISTENT YIELD
PERFORMANCE DESPITE LOW RATE ENVIRONMENT
1 Annualized and presented on a fully tax-equivalent basis
2 All U.S. publicly-traded banks and thrifts, excluding TCF, with total assets between $10 and $50 billion as of June 30, 2016 that have
reported loan and lease yields for the past four quarters, includes loans held for sale (source: SNL Financial)
N.A. Not available
3Q15 4Q15 1Q16 2Q16 3Q16
Consumer Real Estate:
First Mortgage Lien 5.28% 5.31% 5.40% 5.34% 5.35%
Junior Lien 5.51 5.54 5.67 5.64 5.60
Commercial 4.26 4.40 4.30 4.30 4.22
Leasing & Equipment Finance 4.59 4.55 4.47 4.45 4.48
Inventory Finance 5.83 5.66 5.68 5.74 6.07
Auto Finance 4.13 4.17 4.14 4.19 4.06
Total Loans and Leases 4.88 4.89 4.89 4.88 4.88
Peer Group2 Average 4.45 4.38 4.37 4.35 N.A.
Loan and Lease Yields1
Strategic Pillars
Diversification 1
Profitable Growth 2
6,000
4,000
2,000
0
12/12 12/13 12/14 12/15 9/16
$563 $1,319
$2,044 $2,794
$2,886
$720
$1,104
$1,785
$2,187
$2,895
Auto Finance At September 30, 2016
17
• Originate and service used and new retail auto loans
acquired through franchised and independent dealers
across the country
• Experienced management team
• More than 11,700 active dealer relationships
• Sold $614.9 million of auto loans in 3Q16 resulting in a
gain of $12.2 million
• Loan servicing fees of $8.6 million in 3Q16
Auto Finance
$2.7 billion
(16% of total loans
and leases)
• 4.06% quarterly average yield1
• Over 60-days delinquency rate of 0.20%2
• Net charge-off (%): 2014 2015 YTD 3Q163
0.66% 0.68% 0.78%
• Sell lower FICO score loans, but retain servicing of loans
sold
• Average held for investment portfolio
FICO score of 729 at origination
1 Annualized and presented on a fully tax-equivalent basis
2 Excludes non-accrual loans and acquired loans
3 Annualized
($ millions)
Used Auto
77%
New Auto
23%
YTD Originations
# of employees
$1,205 $1,947 $2,796 $3,156 $2,700
400 623 797 966 1,005
$1,283
$2,423
$3,829
$4,981
$5,781
Serviced for Others Portfolio
Portfolio Loans and HFS
First
Mortgage
Liens 46%
Junior
Liens
54%
8,000
6,000
4,000
2,000
0
12/12 12/13 12/14 12/15 9/16
$4,240 $3,766 $3,143 $2,636 $2,319
$2,435 $2,573
$2,543 $2,839 $2,900
$6,700
$625
$6,964
$1,401
$7,087
$1,816
$7,291
$2,113
$7,332
18
1 Includes $25 million serviced for others portfolio
2 Annualized and presented on a fully tax-equivalent basis
3 Excludes non-accrual loans and acquired loans
4 YTD Annualized
• 44% fixed-rate, 56% variable-rate
• Average FICO score of the consumer real estate
portfolio:
• At origination – 735; updated 3Q16 – 733
• Sold $437.1 million of consumer real estate loans in
3Q16 resulting in a gain of $14.3 million
• Loan servicing fees of $1.4 million in 3Q16
Consumer
Real Estate
$5.0 billion
(Junior liens and
First mortgage
liens are 15% and
13% of total loans
and leases,
respectively)
($ millions)
Consumer Real Estate At September 30, 2016
Total Portfolio
Loans and HFS $6,675 $6,339 $5,686 $5,475 $5,219
YTD Originations $1,196 $1,676 $1,770 $2,437 $1,906
First Mortgage Liens (Portfolio Loans and HFS)
Junior Liens (Portfolio Loans and HFS)
Serviced for Others Portfolio
• Quarterly average yields2: 5.75% fixed-rate, 5.29%
variable-rate
• Over 60-days delinquency rate of 0.16%3
• Net charge-off (%): 2014 2015 YTD 3Q164
First mortgage liens 1.18% 0.62% 0.42%
Junior liens 0.55% 0.30% 0.08%
• 59% of loan balances originated since January 1, 2009
with 3Q16 net charge-offs of less than 0.01%4
• $561.4 million in junior lien HELOCs
with interest-only revolving draws
and no defined amortization period,
18.2% mature prior to 2021
1
Multi-Family
28%
Health
Care
Facilities
12%Office
Buildings
10%
Industrial
Buildings
11%
Business
20%
Other
19%
3,500
3,000
2,500
2,000
12/12 12/13 12/14 12/15 9/16
19
($ millions)
• 30% fixed-rate, 70% variable and adjustable rate
• CRE location mix: 81.5% located in TCF banking
markets, 18.5% outside (following strong, proven
sponsors)
• Continue to look for strategic expansion
opportunities that fit TCF’s profile
• 4.22% quarterly average yield1
• Over 60-days delinquency rate of 0.01%2
• Net charge-off (%): 2014 2015 YTD 3Q163
0.18% 0.05% 0.01%
• Maintaining relationships while evaluating growth
opportunities resulting from changing marketplace
dynamics
• Loans with classified risk ratings
decreased from 10.4% at 4Q12
to 1.4% at 3Q16
Commercial
$3.2 billion
(18% of total
loans and
leases)
1 Annualized and presented on a fully tax-equivalent basis
2 Excludes non-accrual and acquired loans
3 Annualized
Commercial At September 30, 2016
YTD Originations $1,494 $1,558 $1,596 $1,875 $1,368
Portfolio Loans
Serviced for Others
$3,412
$3,165 $3,204 $3,225 $3,246
Leasing &
Equipment Finance
$4.2 billion
(24% of total loans
and leases)
Leasing and Equipment Finance At September 30, 2016
5,000
4,000
3,000
2,000
1,000
0
12/12 12/13 12/14 12/15 9/16
Specialty
Vehicles
29%
Manufacturing
7%
Medical
8%
Construction
11%
Golf Cart & Turf
10%
Technology &
Data Processing
7%
Furniture &
Fixtures 9%
Other
19%
Portfolio Loans and Leases
($ millions)
1 Includes operating leases
2 Source: The Monitor, 2016 Monitor Bank 50
3 Source: The Monitor, 2016 Monitor 100
• 15th largest bank-affiliated leasing company2 and
30th largest equipment finance/leasing company3
in the U.S.
• Experienced management team
• Uninstalled backlog of $500.8 million, up from
$446.3 million at December 31, 2015
• Focus on financing business-essential equipment
• 4.48% quarterly average yield4
• Over 60-days delinquency rate of 0.14%5
• Net charge-off (%): 2014 2015 YTD 3Q166
0.10% 0.13% 0.14%
• 3Q16 fee revenue of $28.5 million, 23.7% of TCF
total fees and other revenue
4 Annualized and presented on a fully tax-equivalent basis
5 Excludes non-accrual loans and leases and acquired loans and leases
6 Annualized
20
1
Serviced for Others
$3,484 $3,679
$3,994
$4,290 $4,506
YTD
Originations1 $1,696 $1,730 $1,874 $1,969 $1,544
21
($ millions)
1 Annualized and presented on a fully tax-equivalent basis
2 Excludes non-accrual loans
3 Annualized
2,500
2,000
1,500
1,000
500
0
9/12 9/13 9/14 9/15 9/16
$1,515
$1,766 $1,884
$2,188 $2,296
Powersports
45%
Lawn &
Garden
27%
Other
28%
• 6.07% quarterly average yield1
• Over 60-day delinquency rate of 0.01%2
• Net charge-off (%): 2014 2015 YTD 3Q163
0.04% 0.07% 0.08%
• Credit risk spread across more than 10,800 active
dealers
• Unique high yielding, high return business with a
high barrier to entry and strong credit
performance
• Experienced management team
• Operates in the U.S. and Canada
• 100% variable-rate receivables
• Balances impacted by seasonality - typically peak
in 1Q
• High loan yields driven by the high operating
costs of the business, not increased credit risk
Inventory
Finance
$2.3 billion
(13% of total
loans and
leases)
YTD Originations $3,967 $3,942 $4,126 $4,493 $5,027
Serviced for Others
Portfolio Loans
Inventory Finance At September 30, 2016
22
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
3Q15 4Q15 1Q16 2Q16 3Q16
$15,976 $16,289
$16,885 $17,284 $17,148
• Checking account attrition rate
improved by 240 bps year-over-year
• Average interest rate on deposits
was consistent quarter-over-quarter
• Average checking balances
increased 5.0% year-over-year
• 86% of period-end certificates of
deposit balances are less than
$250,000
0.31% 0.34% 0.36% 0.37% 0.37%
Average
interest cost:
Deposit Generation
Average Balances
($ millions)
Certificates of Deposit
Money Market
Savings
Checking
Strategic Pillars
Profitable Growth 2
Core Funding 4
21%
14%
31%
34%
23%
15%
29%
33%
24%
15%
28%
33%
25%
15%
27%
33%
25%
15%
27%
33%
23
43%
19%
38%
40%
41%
19%
Well Prepared for Changing
Interest Rates
EARNING ASSETS
DEPOSITS
• Growth of short-term and variable rate
loans positions TCF to benefit in a rising
rate environment
• Shorter duration of assets provides
optionality in changing rate environment
• 81% of assets are variable/adjustable rate
or short/medium duration fixed rate
• 57% of loan and lease balances are
expected to reprice, amortize or prepay in
the next 12 months
• 62% of deposits are low or no interest
cost with an average balance of
$10.6 billion and an average cost of
two basis points for 3Q16
Variable & Adjustable Rate
(Inventory Finance,
Commercial, Consumer
Real Estate, Investments)
Fixed Rate - Long Duration
(Securities, Consumer Real
Estate)
Fixed Rate - Short/Medium
Duration (Commercial,
Leasing, Auto Finance)
Low Interest Cost
No Interest Cost
Other
At September 30, 2016
Strategic Pillars
Diversification 1
Profitable Growth 2
24
2Q16 3Q16
Common equity Tier 1 capital ratio1 10.16% 10.35%
Tier 1 risk-based capital ratio1 11.67% 11.85%
Total risk-based capital ratio1 13.73% 13.89%
Tier 1 leverage ratio1 10.38% 10.66%
Common equity ratio 10.13% 10.29%
Tangible common equity ratio2 9.15% 9.31%
Book value per common share $ 12.48 $ 12.69
Tangible book value per common
share2 $ 11.15 $ 11.36
Return on average common equity3 10.09% 9.59%
Return on average tangible common
equity3, 4 11.38% 10.78%
• Maintained strong capital
ratios with earnings
accumulation
• Common stock dividend
of 7.5 cents per share
declared on October 19,
2016
Capital and Return
1 The regulatory capital ratios for 3Q16 are preliminary pending completion and filing of the Company’s regulatory reports
2 See “Reconciliation of GAAP to Non-GAAP Financial Measures – Tangible Common Equity Ratio and Tangible Book Value Per Common Share” slide
3 Annualized
4 See “Reconciliation of GAAP to Non-GAAP Financial Measures – Return on Average Tangible Common Equity” slide
25
STRATEGIC PILLARS STATUS
DIVERSIFICATION
• Superior loan and lease diversification
• Loan and lease diversification resulting in
stabilization of credit quality
PROFITABLE GROWTH
• Disciplined loan and lease origination
growth
• Consistent execution on loan sales
• Strong net interest income despite
competitive low interest rate environment
OPERATING LEVERAGE
• Year-over-year revenue growth outpacing
expense growth
• Branch rationalization where appropriate
CORE FUNDING
• Preferred deposit composition primarily
made up of low balance, retail deposits
which have the highest liquidity value
• Continued improvement in account attrition
1
2
3
4
Execution under a strong enterprise risk management and credit culture
Summary
Appendix
Loan and Lease Diversification
Business Unit Consumer Commercial
Leasing and
Equipment Finance Inventory Finance Auto Finance
Type /
Segment
Consumer real
estate
Multi-family housing
Business
Health care facilities
Industrial buildings
Office buildings
Specialty vehicles
Construction
Golf cart & Turf
Furniture & Fixtures
Medical
Manufacturing
Technology & Data
processing
Powersports
Lawn & Garden
Primarily used
autos
Geography Local1
National
Local1 National National
Canada
National
Rate Variable-rate
Fixed-rate
Variable/adjustable-
rate
Fixed-rate
Fixed-rate Variable-rate Fixed-rate
Average Loan &
Lease Size
First Mortgage
Liens:
$2.7 million $77,000 $209,000 $16,000$100,000
Junior Liens:
$45,000
Estimated
Weighted
Average Life2
60 months 23 months 20 months 4 months 20 months
Collateral Real estate Real estate
Other non-real estate
assets
Equipment Inventory Vehicle
27
TCF MAINTAINS A WELL-DIVERSIFIED LOAN AND LEASE PORTFOLIO
1 TCF’s branch footprint (IL, MN, MI, CO, WI, AZ, SD)
2 As of September 30, 2016; estimated weighted average life represents how many months it is expected to take to collect half of the outstanding principal
Loan and Lease
Geographic Diversification
At September 30, 2016
($ millions)
Consumer Real
Estate Commercial
Leasing and
Equipment
Finance
Inventory
Finance Auto Finance Other Total
Minnesota $ 1,330.2 $ 787.5 $ 104.5 $ 72.7 $ 54.5 $ 5.7 $ 2,355.1
California 844.4 67.8 588.3 86.8 449.8 — 2,037.1
Illinois 1,161.2 407.2 168.2 58.1 103.4 4.3 1,902.4
Michigan 438.7 496.0 119.8 91.9 52.9 2.8 1,202.1
Wisconsin 237.0 456.6 60.1 71.0 27.6 0.9 853.2
Texas — 58.7 414.5 141.3 234.8 — 849.3
Colorado 259.7 232.2 73.3 25.9 52.7 3.8 647.6
Florida 89.4 65.7 214.7 103.9 146.9 — 620.6
New York 31.9 19.4 250.2 78.1 126.0 — 505.6
Canada — — 1.1 477.8 — — 478.9
Ohio 7.3 75.5 155.3 98.5 75.6 — 412.2
Pennsylvania 31.9 14.9 157.9 67.3 112.4 0.1 384.5
Georgia 46.6 38.1 109.1 44.8 93.8 — 332.4
Arizona 91.6 18.4 121.8 16.7 79.6 0.2 328.3
North Carolina 2.4 21.0 148.9 54.4 90.9 — 317.6
New Jersey 44.1 — 158.2 22.8 87.5 — 312.6
Massachusetts 38.7 17.4 118.9 18.9 54.2 — 248.1
Indiana 19.7 57.6 77.7 46.6 38.4 — 240.0
Washington 93.4 2.9 61.1 27.5 38.5 — 223.4
Virgina 23.3 4.7 86.9 34.0 73.5 — 222.4
Tennessee 2.9 44.5 74.7 34.9 57.3 — 214.3
Other 192.9 264.1 971.0 587.2 681.6 0.1 2,696.9
Total $ 4,987.3 $ 3,150.2 $ 4,236.2 $ 2,261.1 $ 2,731.9 $ 17.9 $ 17,384.6
28
29
Reconciliation of GAAP to Non-GAAP Financial
Measures – Tangible Common Equity Ratio and
Tangible Book Value Per Common Share1
At At
Jun. 30, 2016 Sep. 30, 2016
Total equity $ 2,419,758 $ 2,452,380
Less: Non-controlling interest in subsidiaries 21,660 18,926
Total TCF Financial Corporation stockholders' equity 2,398,098 2,433,454
Less: Preferred stock 263,240 263,240
Total common stockholders' equity (a) 2,134,858 2,170,214
Less:
Goodwill 225,640 225,640
Other intangibles 2,394 2,028
Tangible common equity (b) $ 1,906,824 $ 1,942,546
Total assets (c) $ 21,069,510 $ 21,084,156
Less:
Goodwill 225,640 225,640
Other intangibles 2,394 2,028
Tangible assets (d) $ 20,841,476 $ 20,856,488
Common stock shares outstanding (e) 171,005,952 170,951,234
Common equity ratio (a) / (c) 10.13% 10.29%
Tangible common equity ratio (b) / (d) 9.15% 9.31%
Book value per common share (a) / (e) $ 12.48 $ 12.69
Tangible book value per common share (b) / (e) $ 11.15 $ 11.36
1 When evaluating capital adequacy and utilization, management considers financial measures such as the tangible common equity ratio and tangible book value
per common share. 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.
($ thousands, except per share data)
30
Reconciliation of GAAP to Non-GAAP Financial
Measures – Return on Average Tangible Common
Equity1
QTD QTD
Jun. 30, 2016 Sep. 30, 2016
Net income available to common stockholders (a) $ 52,847 $ 51,445
Plus: Other intangibles amortization 366 366
Less: Income tax expense attributable to other intangibles amortization 129 128
Adjusted net income available to common stockholders (b) $ 53,084 $ 51,683
Average balances:
Total equity $ 2,383,329 $ 2,431,475
Less: Non-controlling interest in subsidiaries 25,820 22,163
Total TCF Financial Corporation stockholders' equity 2,357,509 2,409,312
Less: Preferred stock 263,240 263,240
Average total common stockholders' equity (c) 2,094,269 2,146,072
Less:
Goodwill 225,640 225,640
Other intangibles 2,596 2,233
Average tangible common equity (d) $ 1,866,033 $ 1,918,199
Return on average common equity2 (a) / (c) 10.09% 9.59%
Return on average tangible common equity2 (b) / (d) 11.38% 10.78%
($ thousands)
1 When evaluating capital adequacy and utilization, management considers financial measures such as return on average tangible common
equity. This measure is a non-GAAP financial measure and is viewed by management as a useful indicator 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