Exhibit

EX-99.1 2 tcf33119form8-kexhibit991r.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1

NEWS RELEASE

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

FOR IMMEDIATE RELEASE



Contact:
Mark Goldman	(952) 475-7050	news@tcfbank.com	(Media)
Timothy Sedabres	(952) 745-2766	investor@tcfbank.com	(Investors)

TCF REPORTS QUARTERLY NET INCOME OF $70.5 MILLION, OR $0.42 PER SHARE

Adjusted diluted earnings per common share of $0.46,⁽¹⁾

excluding 4 cents per share after-tax impact of merger-related expenses

First Quarter Observations


•	Diluted earnings per common share of 42 cents, up 7.7% from the first quarter of 2018; adjusted diluted earnings per common share of 46 cents⁽¹⁾, up 17.9% from the first quarter of 2018


•	Revenue of $357.9 million, up 0.7% from the first quarter of 2018


•	Net interest income growth of 3.2% from the first quarter of 2018


•	Non-interest expense up 2.9% from the first quarter of 2018; non-interest expense (excluding merger-related expenses of $9.5 million), down 1.0%⁽²⁾ from the first quarter of 2018


•	Reported efficiency ratio of 70.70%, up 149 basis points from the first quarter of 2018; adjusted efficiency ratio of 68.06%⁽¹⁾, down 115 basis points from the first quarter of 2018


•	Average interest-earning asset growth of 3.6% from the first quarter of 2018


•	Period-end loans and leases of $19.4 billion, flat from March 31, 2018; period-end loans and leases excluding auto finance up 6.9%⁽³⁾ from March 31, 2018


•	Net charge-off rate of 0.39%; net charge-off rate excluding auto finance net charge-offs of 0.20%⁽¹⁾


•	Non-performing assets of $121.6 million, down 15.3% from March 31, 2018


•	Return on average common equity ("ROACE") of 11.40%; return on average tangible common equity ("ROATCE") of 12.42%⁽¹⁾; adjusted ROATCE of 13.72%⁽¹⁾



Summary of Financial Results
	At or For the Quarter Ended															Change From
	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Mar. 31,
(Dollars in thousands, except per share data)	2019			2018			2018			2018			2018			2018			2018
Net income attributable to TCF	$	70,494		$	85,652		$	86,196		$	58,749		$	73,761		(17.7	)	%	(4.4	)	%
Net interest income	250,907			248,888			249,121			250,799			243,199			0.8			3.2
Basic earnings per common share	0.42			0.51			0.51			0.34			0.39			(17.6	)		7.7
Diluted earnings per common share	0.42			0.51			0.51			0.34			0.39			(17.6	)		7.7
Adjusted diluted earnings per common share⁽¹⁾	0.46			0.51			0.51			0.49			0.39			(9.8	)		17.9

Financial Ratios
Return on average assets⁽⁴⁾	1.22		%	1.52		%	1.55		%	1.08		%	1.33		%	(30	)	bps	(11	)	bps
ROACE⁽⁴⁾	11.40			14.30			14.44			9.72			11.23			(290	)		17
Adjusted ROACE⁽¹⁾⁽⁴⁾	12.61			14.30			14.44			14.11			11.23			(169	)		138
ROATCE⁽¹⁾⁽⁴⁾	12.42			15.59			15.76			10.65			12.26			(317	)		16
Adjusted ROATCE⁽¹⁾⁽⁴⁾	13.72			15.59			15.76			15.39			12.26			(187	)		146
Net interest margin⁽⁴⁾	4.56			4.60			4.66			4.67			4.59			(4	)		(3	)
Net charge-offs as a percentage of average loans and leases⁽⁴⁾	0.39			0.46			0.15			0.27			0.29			(7	)		10
Non-performing assets as a percentage of total loans and leases and other real estate owned	0.63			0.65			0.59			0.54			0.74			(2	)		(11	)
Efficiency ratio	70.70			66.30			67.41			74.55			69.21			440			149
Adjusted efficiency ratio⁽¹⁾	68.06			66.30			67.41			65.78			69.21			176			(115	)


(1)	See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.


(2)	Calculated by subtracting merger-related expenses of $9.5 million from non-interest expense of $253.1 million for the first quarter of 2019, compared to non-interest expense of $246.0 million for the first quarter of 2018.


(3)	Calculated by subtracting auto finance loans of $1.7 billion and $2.8 billion at March 31, 2019 and 2018, respectively, from total loans and leases of $19.4 billion at March 31, 2019 and 2018.


(4)	Annualized

WAYZATA, Minn. (April 22, 2019) - TCF Financial Corporation ("TCF" or the "Company") (NYSE: TCF) today reported net income of $70.5 million for the first quarter of 2019, compared with $73.8 million for the first quarter of 2018 and $85.7 million for the fourth quarter of 2018. Diluted earnings per common share was 42 cents for the first quarter of 2019 (inclusive of a 4 cents per common share after-tax impact of merger-related expenses), compared with 39 cents for the first quarter of 2018 and 51 cents for the fourth quarter of 2018. Adjusted diluted earnings per common share was 46 cents for the first quarter of 2019, an increase of 17.9% from the first quarter of 2018 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

"Our strong first quarter performance was highlighted by higher return on capital compared to a year ago and disciplined expense management," said Craig R. Dahl, chairman and chief executive officer. "Our results were supported by loan and lease growth excluding the run-off of our auto finance portfolio, and growth in core checking and savings deposit balances, while we controlled expense growth excluding merger-related expenses. We continue to see a positive business outlook for the year, with strong organic growth prospects across many of our businesses and we are well underway in integration planning work to prepare for our proposed merger of equals with Chemical Financial Corporation."

Net Interest Income and Net Interest Margin

Net interest income was $250.9 million for the first quarter of 2019, an increase of $7.7 million, or 3.2%, from the first quarter of 2018 and an increase of $2.0 million, or 0.8%, from the fourth quarter of 2018. Net interest margin was 4.56% for the first quarter of 2019, down 3 basis points from the first quarter of 2018 and down 4 basis points from the fourth quarter of 2018. The increase in net interest income from the first quarter of 2018 was primarily due to increased average yields and higher average balances in the variable- and adjustable-rate loan portfolios, higher average balances of fixed-rate consumer real estate loans and debt securities available for sale, partially offset by increased cost of funds and lower average balances of auto finance loans. The increase in net interest income from the fourth quarter of 2018 was primarily due to seasonally higher average balances of inventory finance loans and higher average balances of fixed-rate consumer real estate loans, partially offset by increased cost of funds and lower average balances of auto finance loans. The decreases in net interest margin from both periods were primarily due to higher average rates on deposits, partially offset by higher average yields on the variable- and adjustable-rate loan portfolios. The decreases were also driven by the reinvestment of the auto finance portfolio run-off into available for sale mortgage-backed debt securities and fixed-rate consumer real estate loans.

Non-interest Income

Non-interest income was $107.0 million for the first quarter of 2019, a decrease of $5.2 million, or 4.6%, from the first quarter of 2018 and a decrease of $21.1 million, or 16.5%, from the fourth quarter of 2018. The decrease from the first quarter of 2018 was primarily due to a decrease in servicing fee income driven by continued run-off in the auto finance serviced for others portfolio and a decrease in gains on sales of loans. The decrease from the fourth quarter of 2018 was primarily due to a decrease in leasing and equipment finance non-interest income driven by customer-driven activity and a decrease in fees and service charges.

Non-interest Expense

Non-interest expense was $253.1 million for the first quarter of 2019, an increase of $7.1 million, or 2.9%, from the first quarter of 2018 and an increase of $3.1 million, or 1.2%, from the fourth quarter of 2018. The increases in non-interest expense from both periods were primarily due to merger-related expenses of $9.5 million for the proposed merger with Chemical Financial Corporation. Non-interest expense excluding merger-related expenses was $243.6 million for the first quarter of 2019, a decrease of $2.4 million, or 1.0%, from the first quarter of 2018 and a decrease of $6.3 million, or 2.5%, from the fourth quarter of 2018 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The decreases in non-interest expense excluding merger-related expenses from both periods were primarily due to decreases in compensation and employee benefits expense. The decrease in compensation and employee benefits expense from the fourth quarter of 2018 was primarily due to a large medical claim of $6.8 million recorded in the fourth quarter of 2018.

Credit Quality

Provision for credit losses The provision for credit losses was $10.1 million for the first quarter of 2019, a decrease of $1.2 million, or 11.0%, from the first quarter of 2018 and a decrease of $8.8 million, or 46.4%, from the fourth quarter of 2018. The decreases from both periods were primarily due to decreases in the provision for credit losses attributable to the commercial portfolio. The decrease from the first quarter of 2018 was partially offset by an increase in the provision for credit losses attributable to the inventory finance portfolio.

Net charge-off rate The annualized net charge-off rate was 0.39% for the first quarter of 2019, up 10 basis points from the first quarter of 2018 and down 7 basis points from the fourth quarter of 2018. The increase from the first quarter of 2018 was primarily due to increased net charge-offs in the commercial, inventory finance and leasing and equipment finance portfolios, partially offset by decreased net charge-offs in the consumer real estate portfolio. The decrease from the fourth quarter of 2018 was primarily due to decreased net charge-offs in the inventory finance and commercial portfolios. The annualized net charge-off rate excluding auto finance net charge-offs was 0.20% for the first quarter of 2019, up 11 basis points from the first quarter of 2018 and down 8 basis points from the fourth quarter of 2018 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

Over 60-day delinquency rate The over 60-day delinquency rate, excluding non-accrual loans and leases, was 0.12% at March 31, 2019, up 2 basis points from the March 31, 2018 rate and down 3 basis points from the December 31, 2018 rate. The increase from March 31, 2018 was primarily due to higher delinquencies in the leasing and equipment finance portfolio. The decrease from December 31, 2018 was primarily due to lower delinquencies in the auto finance portfolio.

Non-performing assets Non-performing assets, consisting of non-accrual loans and leases and other real estate owned, were $121.6 million at March 31, 2019, a decrease of $22.0 million, or 15.3%, from March 31, 2018 and a decrease of $1.7 million, or 1.4%, from December 31, 2018. The decrease from March 31, 2018 was primarily due to a decrease in consumer real estate non-accrual loans. The decrease from December 31, 2018 was primarily due to decreases in commercial and inventory finance non-accrual loans, partially offset by increases in consumer real estate and leasing and equipment finance non-accrual loans and leases.

Balance Sheet

Average debt securities held to maturity and debt securities available for sale The total average debt securities portfolio was $2.8 billion for the first quarter of 2019, an increase of $823.1 million, or 41.9%, from the first quarter of 2018 and an increase of $67.3 million, or 2.5%, from the fourth quarter of 2018. The increases from both periods were primarily due to purchases of available for sale mortgage-backed debt securities, partially offset by sales of available for sale obligations of states and political subdivisions debt securities.

Average loans and leases Average loans and leases were $19.2 billion for the first quarter of 2019, a decrease of $67.2 million, or 0.3%, from the first quarter of 2018 and an increase of $631.6 million, or 3.4%, from the fourth quarter of 2018. The decrease from the first quarter of 2018 was primarily due to run-off of the auto finance portfolio, partially offset by increases in the consumer real estate, inventory finance and commercial loan portfolios. The increase from the fourth quarter of 2018 was primarily due to increases in the inventory finance and consumer real estate loan portfolios, partially offset by run-off of the auto finance portfolio. Average loans and leases excluding auto finance were $17.3 billion for the first quarter of 2019, an increase of $1.1 billion, or 6.8%, from the first quarter of 2018 and an increase of $912.5 million, or 5.6%, from the fourth quarter of 2018 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

Average deposits Average deposits were $18.7 billion for the first quarter of 2019, an increase of $445.1 million, or 2.4%, from the first quarter of 2018 and an increase of $277.4 million, or 1.5%, from the fourth quarter of 2018. The increases from both periods were primarily due to increases in savings account balances, partially offset by decreases in certificates of deposit balances.

Capital TCF continues to maintain strong capital ratios, with a common equity Tier 1 capital ratio of 10.79%. TCF did not repurchase any shares of its common stock during the quarter and had the authority to repurchase $78.1 million in aggregate value of shares at March 31, 2019, pursuant to its share repurchase program.

TCF is a Wayzata, Minnesota-based national bank holding company. As of March 31, 2019, TCF had $24.4 billion in total assets and 312 bank branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona and South Dakota providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and equipment finance business in all 50 states and commercial inventory finance business in all 50 states and Canada. For more information about TCF, please visit http://ir.tcfbank.com.

Cautionary Statements for Purposes of the Safe Harbor Provisions of the Securities Litigation Reform Act

Any statements contained in this earnings release regarding the outlook for the Company's businesses and their respective markets, such as projections of future performance, targets, guidance, statements of the Company's plans and objectives, forecasts of market trends and other matters are forward-looking statements based on the Company's assumptions and beliefs. Such statements may be identified by such words or phrases as "will likely result," "are expected to," "will continue," "outlook," "will benefit," "is anticipated," "estimate," "project," "management believes" or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed in such statements and no assurance can be given that the results in any forward-looking statement will be achieved. For these statements, TCF claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date on which it is made and we disclaim any obligation to subsequently revise any forward-looking statement, including 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, 2018 under the heading "Risk Factors" 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.

Use of Non-GAAP Financial Measures

Management uses the adjusted diluted earnings per common share, adjusted ROACE, ROATCE, adjusted ROATCE, adjusted efficiency ratio, net charge-off rate excluding auto finance, tangible book value per common share and tangible common equity to tangible assets internally to measure performance and believes that these financial measures not recognized under generally accepted accounting principles in the United States ("GAAP") (i.e. non-GAAP) provide meaningful information to investors that will permit them to assess the Company's capital and ability to withstand unexpected market or economic conditions and to assess the performance of the Company in relation to other banking institutions on the same basis as that applied by management, analysts and banking regulators. TCF adjusts certain results to exclude merger-related expenses as management believes it is useful to investors in understanding TCF's business and operating results. In addition, TCF adjusts certain results to exclude auto finance because TCF no longer originates auto finance loans, and therefore management believes it is useful to investors in understanding TCF's business and operating results.

These non-GAAP financial measures are not defined by GAAP and other entities may calculate them differently than TCF does. Non-GAAP financial measures have inherent limitations and are not required to be uniformly applied. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes selected items does not represent the amount that effectively accrues directly to stockholders.



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition (Unaudited)

																Change From
(Dollars in thousands)	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31, 2018					Mar. 31, 2018
(Dollars in thousands)	2019			2018			2018			2018			2018			$			%		$			%
ASSETS:
Cash and due from banks	$	463,822		$	587,057		$	569,968		$	581,876		$	588,893		$	(123,235	)	(21.0	)%	$	(125,071	)	(21.2	)%
Investments	103,644			91,654			80,672			95,661			91,661			11,990			13.1		11,983			13.1
Debt securities held to maturity	148,024			148,852			152,881			155,962			158,099			(828		)	(0.6	)	(10,075		)	(6.4	)
Debt securities available for sale	2,945,342			2,470,065			2,379,546			2,249,784			1,954,246			475,277			19.2		991,096			50.7
Loans and leases held for sale	64,468			90,664			114,198			291,871			50,706			(26,196		)	(28.9	)	13,762			27.1
Loans and leases:
Consumer real estate:
First mortgage lien	2,480,750			2,444,380			1,960,756			1,800,885			1,878,441			36,370			1.5		602,309			32.1
Junior lien	2,872,807			2,965,960			2,940,701			2,830,029			2,843,221			(93,153		)	(3.1	)	29,586			1.0
Total consumer real estate	5,353,557			5,410,340			4,901,457			4,630,914			4,721,662			(56,783		)	(1.0	)	631,895			13.4
Commercial	3,884,106			3,851,303			3,741,164			3,706,401			3,678,181			32,803			0.9		205,925			5.6
Leasing and equipment finance	4,674,309			4,699,740			4,601,887			4,648,049			4,666,239			(25,431		)	(0.5	)	8,070			0.2
Inventory finance	3,749,146			3,107,356			2,880,404			3,005,165			3,457,855			641,790			20.7		291,291			8.4
Auto finance	1,704,614			1,982,277			2,275,134			2,603,260			2,839,363			(277,663		)	(14.0	)	(1,134,749		)	(40.0	)
Other	17,943			21,295			21,107			20,957			19,854			(3,352		)	(15.7	)	(1,911		)	(9.6	)
Total loans and leases	19,383,675			19,072,311			18,421,153			18,614,746			19,383,154			311,364			1.6		521			—
Allowance for loan and lease losses	(147,972		)	(157,446		)	(160,621		)	(165,619		)	(167,703		)	9,474			6.0		19,731			11.8
Net loans and leases	19,235,703			18,914,865			18,260,532			18,449,127			19,215,451			320,838			1.7		20,252			0.1
Premises and equipment, net	429,711			427,534			429,648			430,956			427,497			2,177			0.5		2,214			0.5
Goodwill, net	154,757			154,757			154,757			154,757			154,757			—			—		—			—
Other assets	873,244			814,164			762,583			774,468			743,742			59,080			7.3		129,502			17.4
Total assets	$	24,418,715		$	23,699,612		$	22,904,785		$	23,184,462		$	23,385,052		$	719,103		3.0		$	1,033,663		4.4
LIABILITIES AND EQUITY:
Deposits:
Checking	$	6,621,261		$	6,381,327		$	6,382,667		$	6,408,174		$	6,541,409		$	239,934		3.8	%	$	79,852		1.2	%
Savings	6,442,544			6,122,257			5,737,144			5,570,979			5,551,155			320,287			5.2		891,389			16.1
Money market	1,468,308			1,609,422			1,504,952			1,562,008			1,609,472			(141,114		)	(8.8	)	(141,164		)	(8.8	)
Certificates of deposit	4,491,998			4,790,680			4,871,748			4,822,112			4,995,636			(298,682		)	(6.2	)	(503,638		)	(10.1	)
Total deposits	19,024,111			18,903,686			18,496,511			18,363,273			18,697,672			120,425			0.6		326,439			1.7
Borrowings:
Short-term borrowings	355,992			—			2,324			761			775			355,992			N.M.		355,217			N.M.
Long-term borrowings	1,411,426			1,449,472			1,168,400			1,554,569			1,457,976			(38,046		)	(2.6	)	(46,550		)	(3.2	)
Total borrowings	1,767,418			1,449,472			1,170,724			1,555,330			1,458,751			317,946			21.9		308,667			21.2
Accrued expenses and other liabilities	981,341			790,194			709,538			761,281			677,679			191,147			24.2		303,662			44.8
Total liabilities	21,772,870			21,143,352			20,376,773			20,679,884			20,834,102			629,518			3.0		938,768			4.5
Equity:
Preferred stock	169,302			169,302			169,302			169,302			169,302			—			—		—			—
Common stock	1,733			1,736			1,736			1,735			1,725			(3		)	(0.2	)	8			0.5
Additional paid-in capital	875,797			885,089			882,321			877,364			878,096			(9,292		)	(1.0	)	(2,299		)	(0.3	)
Retained earnings, subject to certain restrictions	1,810,701			1,766,994			1,708,410			1,649,449			1,618,041			43,707			2.5		192,660			11.9
Accumulated other comprehensive income (loss)	5,481			(33,138		)	(65,259		)	(52,811		)	(46,851		)	38,619			N.M.		52,332			N.M.
Treasury stock at cost and other	(246,621		)	(252,182		)	(189,652		)	(164,107		)	(97,800		)	5,561			2.2		(148,821		)	(152.2	)
Total TCF Financial Corporation stockholders' equity	2,616,393			2,537,801			2,506,858			2,480,932			2,522,513			78,592			3.1		93,880			3.7
Non-controlling interest in subsidiaries	29,452			18,459			21,154			23,646			28,437			10,993			59.6		1,015			3.6
Total equity	2,645,845			2,556,260			2,528,012			2,504,578			2,550,950			89,585			3.5		94,895			3.7
Total liabilities and equity	$	24,418,715		$	23,699,612		$	22,904,785		$	23,184,462		$	23,385,052		$	719,103		3.0		$	1,033,663		4.4

N.M. Not Meaningful



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)

	Quarter Ended										Change From
(Dollars in thousands)	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31, 2018					Mar. 31, 2018
(Dollars in thousands)	2019		2018		2018		2018		2018		$			%		$			%
Interest income:
Loans and leases	$	279,594	$	270,804	$	264,678	$	269,280	$	260,375	$	8,790		3.2	%	$	19,219		7.4	%
Debt securities available for sale	18,815		17,097		14,838		12,516		10,123		1,718			10.0		8,692			85.9
Debt securities held to maturity	535		965		988		998		1,019		(430		)	(44.6	)	(484		)	(47.5	)
Loans held for sale and other	4,301		4,631		6,678		3,529		3,745		(330		)	(7.1	)	556			14.8
Total interest income	303,245		293,497		287,182		286,323		275,262		9,748			3.3		27,983			10.2
Interest expense:
Deposits	37,480		33,315		27,335		23,953		22,510		4,165			12.5		14,970			66.5
Borrowings	14,858		11,294		10,726		11,571		9,553		3,564			31.6		5,305			55.5
Total interest expense	52,338		44,609		38,061		35,524		32,063		7,729			17.3		20,275			63.2
Net interest income	250,907		248,888		249,121		250,799		243,199		2,019			0.8		7,708			3.2
Provision for credit losses	10,122		18,894		2,270		14,236		11,368		(8,772		)	(46.4	)	(1,246		)	(11.0	)
Net interest income after provision for credit losses	240,785		229,994		246,851		236,563		231,831		10,791			4.7		8,954			3.9
Non-interest income:
Leasing and equipment finance	41,139		55,311		45,045		42,904		41,847		(14,172		)	(25.6	)	(708		)	(1.7	)
Fees and service charges	31,324		36,206		32,574		32,670		30,751		(4,882		)	(13.5	)	573			1.9
Card revenue	14,243		15,078		15,065		14,962		13,759		(835		)	(5.5	)	484			3.5
ATM revenue	4,440		5,054		5,053		4,933		4,650		(614		)	(12.1	)	(210		)	(4.5	)
Gains on sales of loans, net	7,972		8,419		8,764		7,192		9,123		(447		)	(5.3	)	(1,151		)	(12.6	)
Servicing fee income	5,110		5,523		6,032		7,484		8,295		(413		)	(7.5	)	(3,185		)	(38.4	)
Gains (losses) on debt securities, net	451		167		94		24		63		284			170.1		388			N.M.
Other	2,347		2,375		3,818		3,934		3,716		(28		)	(1.2	)	(1,369		)	(36.8	)
Total non-interest income	107,026		128,133		116,445		114,103		112,204		(21,107		)	(16.5	)	(5,178		)	(4.6	)
Non-interest expense:
Compensation and employee benefits	121,557		129,521		123,127		120,575		123,840		(7,964		)	(6.1	)	(2,283		)	(1.8	)
Occupancy and equipment	41,737		42,250		42,337		40,711		40,514		(513		)	(1.2	)	1,223			3.0
Lease financing equipment depreciation	19,256		19,085		19,525		17,945		17,274		171			0.9		1,982			11.5
Foreclosed real estate and repossessed assets, net	4,630		4,396		3,881		3,857		4,916		234			5.3		(286		)	(5.8	)
Merger-related expenses	9,458		—		—		—		—		9,458			N.M.		9,458			N.M.
Other	56,437		54,706		57,553		88,951		59,436		1,731			3.2		(2,999		)	(5.0	)
Total non-interest expense	253,075		249,958		246,423		272,039		245,980		3,117			1.2		7,095			2.9
Income before income tax expense	94,736		108,169		116,873		78,627		98,055		(13,433		)	(12.4	)	(3,319		)	(3.4	)
Income tax expense	21,287		20,013		28,034		16,418		21,631		1,274			6.4		(344		)	(1.6	)
Income after income tax expense	73,449		88,156		88,839		62,209		76,424		(14,707		)	(16.7	)	(2,975		)	(3.9	)
Income attributable to non-controlling interest	2,955		2,504		2,643		3,460		2,663		451			18.0		292			11.0
Net income attributable to TCF Financial Corporation	70,494		85,652		86,196		58,749		73,761		(15,158		)	(17.7	)	(3,267		)	(4.4	)
Preferred stock dividends	2,493		2,494		2,494		2,494		4,106		(1		)	—		(1,613		)	(39.3	)
Impact of preferred stock redemption	—		—		—		—		3,481		—			—		(3,481		)	(100.0	)
Net income available to common stockholders	$	68,001	$	83,158	$	83,702	$	56,255	$	66,174	$	(15,157	)	(18.2	)	$	1,827		2.8

N.M. Not Meaningful



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

	Quarter Ended March 31,
	2019						2018
	Average				Yields and		Average				Yields and
(Dollars in thousands)	Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾		Balance		Interest⁽¹⁾		Rates⁽¹⁾⁽²⁾
ASSETS:
Investments and other	$	366,691	$	3,481	3.82	%	$	332,319	$	2,776	3.38	%
Debt securities held to maturity	147,556		535		1.45		159,139		1,019		2.56
Debt securities available for sale:
Taxable	2,121,196		16,131		3.04		981,843		5,813		2.37
Tax-exempt⁽³⁾	516,995		3,397		2.63		821,642		5,456		2.66
Loans and leases held for sale	55,204		820		6.01		63,095		969		6.22
Loans and leases:⁽⁴⁾
Consumer real estate:
Fixed-rate	2,352,758		29,887		5.12		1,786,636		24,613		5.58
Variable- and adjustable-rate	3,041,252		51,687		6.89		3,012,036		45,881		6.18
Total consumer real estate	5,394,010		81,574		6.12		4,798,672		70,494		5.96
Commercial:
Fixed-rate	817,250		9,064		4.50		931,275		10,597		4.61
Variable- and adjustable-rate	3,012,206		43,532		5.86		2,669,745		33,160		5.04
Total commercial	3,829,456		52,596		5.57		3,601,020		43,757		4.93
Leasing and equipment finance	4,655,705		59,221		5.09		4,690,868		56,407		4.81
Inventory finance	3,454,283		62,865		7.38		3,128,290		51,195		6.64
Auto finance	1,841,130		24,215		5.33		3,020,187		39,285		5.28
Other	11,682		133		4.61		14,446		147		4.16
Total loans and leases	19,186,266		280,604		5.91		19,253,483		261,285		5.49
Total interest-earning assets	22,393,908		304,968		5.50		21,611,521		277,318		5.19
Other assets	1,713,033						1,453,742
Total assets	$	24,106,941					$	23,065,263
LIABILITIES AND EQUITY:
Non-interest bearing deposits	$	3,919,746					$	3,745,745
Interest-bearing deposits:
Checking	2,457,767		387		0.06		2,461,548		113		0.02
Savings	6,253,992		10,670		0.69		5,395,669		3,165		0.24
Money market	1,490,631		4,453		1.21		1,698,064		2,409		0.58
Certificates of deposit	4,622,120		21,970		1.93		4,998,133		16,823		1.36
Total interest-bearing deposits	14,824,510		37,480		1.02		14,553,414		22,510		0.63
Total deposits	18,744,256		37,480		0.81		18,299,159		22,510		0.50
Borrowings:
Short-term borrowings	293,499		1,957		2.67		3,952		19		1.99
Long-term borrowings	1,500,832		12,901		3.44		1,423,075		9,534		2.70
Total borrowings	1,794,331		14,858		3.31		1,427,027		9,553		2.70
Total interest-bearing liabilities	16,618,841		52,338		1.27		15,980,441		32,063		0.81
Total deposits and borrowings	20,538,587		52,338		1.03		19,726,186		32,063		0.66
Accrued expenses and other liabilities	989,104						758,157
Total liabilities	21,527,691						20,484,343
Total TCF Financial Corporation stockholders' equity	2,554,729						2,557,729
Non-controlling interest in subsidiaries	24,521						23,191
Total equity	2,579,250						2,580,920
Total liabilities and equity	$	24,106,941					$	23,065,263
Net interest income and margin			$	252,630	4.56				$	245,255	4.59


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


(2)	Annualized


(3)	The yield on tax-exempt debt securities available for sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.


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



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Quarterly Average Balance Sheets (Unaudited)

	Quarter Ended										Change From
	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31, 2018					Mar. 31, 2018
(Dollars in thousands)	2019		2018		2018		2018		2018		$			%		$			%
ASSETS:
Investments and other	$	366,691	$	330,359	$	306,257	$	309,120	$	332,319	$	36,332		11.0	%	$	34,372		10.3	%
Debt securities held to maturity	147,556		150,016		153,652		155,779		159,139		(2,460		)	(1.6	)	(11,583		)	(7.3	)
Debt securities available for sale:
Taxable	2,121,196		1,779,654		1,525,665		1,262,642		981,843		341,542			19.2		1,139,353			116.0
Tax-exempt	516,995		788,806		823,854		828,131		821,642		(271,811		)	(34.5	)	(304,647		)	(37.1	)
Loans and leases held for sale	55,204		86,169		216,669		45,525		63,095		(30,965		)	(35.9	)	(7,891		)	(12.5	)
Loans and leases:⁽¹⁾
Consumer real estate:
Fixed-rate	2,352,758		1,962,804		1,694,661		1,715,289		1,786,636		389,954			19.9		566,122			31.7
Variable- and adjustable-rate	3,041,252		3,067,216		3,002,225		3,026,310		3,012,036		(25,964		)	(0.8	)	29,216			1.0
Total consumer real estate	5,394,010		5,030,020		4,696,886		4,741,599		4,798,672		363,990			7.2		595,338			12.4
Commercial:
Fixed-rate	817,250		815,626		856,324		900,462		931,275		1,624			0.2		(114,025		)	(12.2	)
Variable- and adjustable-rate	3,012,206		2,932,739		2,921,471		2,802,059		2,669,745		79,467			2.7		342,461			12.8
Total commercial	3,829,456		3,748,365		3,777,795		3,702,521		3,601,020		81,091			2.2		228,436			6.3
Leasing and equipment finance	4,655,705		4,616,715		4,624,968		4,639,703		4,690,868		38,990			0.8		(35,163		)	(0.7	)
Inventory finance	3,454,283		3,024,961		2,866,460		3,299,996		3,128,290		429,322			14.2		325,993			10.4
Auto finance	1,841,130		2,121,969		2,435,868		2,695,943		3,020,187		(280,839		)	(13.2	)	(1,179,057		)	(39.0	)
Other	11,682		12,599		13,547		13,845		14,446		(917		)	(7.3	)	(2,764		)	(19.1	)
Total loans and leases	19,186,266		18,554,629		18,415,524		19,093,607		19,253,483		631,637			3.4		(67,217		)	(0.3	)
Total interest-earning assets	22,393,908		21,689,633		21,441,621		21,694,804		21,611,521		704,275			3.2		782,387			3.6
Other assets	1,713,033		1,464,620		1,462,783		1,430,621		1,453,742		248,413			17.0		259,291			17.8
Total assets	$	24,106,941	$	23,154,253	$	22,904,404	$	23,125,425	$	23,065,263	$	952,688		4.1		$	1,041,678		4.5
LIABILITIES AND EQUITY:
Non-interest bearing deposits	$	3,919,746	$	3,873,023	$	3,874,421	$	3,879,048	$	3,745,745	$	46,723		1.2	%	$	174,001		4.6	%
Interest-bearing deposits:
Checking	2,457,767		2,403,370		2,427,288		2,460,709		2,461,548		54,397			2.3		(3,781		)	(0.2	)
Savings	6,253,992		5,922,724		5,620,161		5,542,565		5,395,669		331,268			5.6		858,323			15.9
Money market	1,490,631		1,449,531		1,496,223		1,572,560		1,698,064		41,100			2.8		(207,433		)	(12.2	)
Certificates of deposit	4,622,120		4,818,211		4,868,286		4,909,422		4,998,133		(196,091		)	(4.1	)	(376,013		)	(7.5	)
Total interest-bearing deposits	14,824,510		14,593,836		14,411,958		14,485,256		14,553,414		230,674			1.6		271,096			1.9
Total deposits	18,744,256		18,466,859		18,286,379		18,364,304		18,299,159		277,397			1.5		445,097			2.4
Borrowings:
Short-term borrowings	293,499		2,738		3,357		3,116		3,952		290,761			N.M.		289,547			N.M.
Long-term borrowings	1,500,832		1,344,228		1,351,585		1,531,389		1,423,075		156,604			11.7		77,757			5.5
Total borrowings	1,794,331		1,346,966		1,354,942		1,534,505		1,427,027		447,365			33.2		367,304			25.7
Total interest-bearing liabilities	16,618,841		15,940,802		15,766,900		16,019,761		15,980,441		678,039			4.3		638,400			4.0
Total deposits and borrowings	20,538,587		19,813,825		19,641,321		19,898,809		19,726,186		724,762			3.7		812,401			4.1
Accrued expenses and other liabilities	989,104		822,558		751,100		714,488		758,157		166,546			20.2		230,947			30.5
Total liabilities	21,527,691		20,636,383		20,392,421		20,613,297		20,484,343		891,308			4.3		1,043,348			5.1
Total TCF Financial Corporation stockholders' equity	2,554,729		2,495,952		2,488,435		2,483,474		2,557,729		58,777			2.4		(3,000		)	(0.1	)
Non-controlling interest in subsidiaries	24,521		21,918		23,548		28,654		23,191		2,603			11.9		1,330			5.7
Total equity	2,579,250		2,517,870		2,511,983		2,512,128		2,580,920		61,380			2.4		(1,670		)	(0.1	)
Total liabilities and equity	$	24,106,941	$	23,154,253	$	22,904,404	$	23,125,425	$	23,065,263	$	952,688		4.1		$	1,041,678		4.5

N.M. Not Meaningful


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



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Quarterly Yields and Rates⁽¹⁾⁽²⁾ (Unaudited)

	Quarter Ended										Change From
	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,			Mar. 31,
	2019		2018		2018		2018		2018		2018			2018
ASSETS:
Investments and other	3.82	%	3.90	%	4.01	%	3.71	%	3.38	%	(8	)	bps	44		bps
Debt securities held to maturity	1.45		2.58		2.57		2.56		2.56		(113	)		(111	)
Debt securities available for sale:
Taxable	3.04		2.91		2.76		2.59		2.37		13			67
Tax-exempt⁽³⁾	2.63		2.66		2.66		2.66		2.66		(3	)		(3	)
Loans and leases held for sale	6.01		6.40		6.57		5.93		6.22		(39	)		(21	)
Loans and leases:
Consumer real estate:
Fixed-rate	5.12		5.33		5.46		5.52		5.58		(21	)		(46	)
Variable- and adjustable-rate	6.89		6.77		6.57		6.41		6.18		12			71
Total consumer real estate	6.12		6.21		6.17		6.09		5.96		(9	)		16
Commercial:
Fixed-rate	4.50		4.51		4.55		4.49		4.61		(1	)		(11	)
Variable- and adjustable-rate	5.86		5.65		5.45		5.45		5.04		21			82
Total commercial	5.57		5.40		5.25		5.21		4.93		17			64
Leasing and equipment finance	5.09		5.11		5.00		4.93		4.81		(2	)		28
Inventory finance	7.38		7.11		7.16		6.94		6.64		27			74
Auto finance	5.33		5.39		5.36		5.30		5.28		(6	)		5
Other	4.61		4.55		4.25		4.10		4.16		6			45
Total loans and leases	5.91		5.82		5.73		5.67		5.49		9			42

Total interest-earning assets	5.50		5.42		5.36		5.33		5.19		8			31

LIABILITIES:
Interest-bearing deposits:
Checking	0.06		0.04		0.04		0.02		0.02		2			4
Savings	0.69		0.54		0.35		0.27		0.24		15			45
Money market	1.21		0.99		0.78		0.67		0.58		22			63
Certificates of deposit	1.93		1.76		1.56		1.43		1.36		17			57
Total interest-bearing deposits	1.02		0.91		0.75		0.66		0.63		11			39
Total deposits	0.81		0.72		0.59		0.52		0.50		9			31
Borrowings:
Short-term borrowings	2.67		2.76		2.46		2.33		1.99		(9	)		68
Long-term borrowings	3.44		3.34		3.15		3.02		2.70		10			74
Total borrowings	3.31		3.34		3.15		3.02		2.70		(3	)		61

Total interest-bearing liabilities	1.27		1.11		0.96		0.89		0.81		16			46

Net interest margin	4.56		4.60		4.66		4.67		4.59		(4	)		(3	)


(1)	Annualized


(2)	Yields are presented on a fully tax-equivalent basis.


(3)	The yield on tax-exempt debt securities available for sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Summary of Credit Quality Data (Unaudited)


Allowance for Loan and Lease Losses

	At Mar. 31,					At Dec. 31,					At Sep. 30,					At Jun. 30,					At Mar. 31,
	2019					2018					2018					2018					2018
				% of					% of					% of					% of				% of
(Dollars in thousands)	Balance		Portfolio			Balance		Portfolio			Balance		Portfolio			Balance		Portfolio			Balance		Portfolio
Consumer real estate	$	43,820		0.82	%	$	44,866		0.83	%	$	45,258		0.92	%	$	43,954		0.95	%	$	47,685	1.01	%
Commercial	34,711			0.89		41,182			1.07		40,470			1.08		40,291			1.09		37,198		1.01
Leasing and equipment finance	24,832			0.53		23,791			0.51		22,926			0.50		22,247			0.48		23,182		0.50
Inventory finance	14,132			0.38		12,456			0.40		11,361			0.39		11,840			0.39		13,253		0.38
Auto finance	29,854			1.75		34,329			1.73		39,852			1.75		46,608			1.79		45,822		1.61
Other	623			3.47		822			3.86		754			3.57		679			3.24		563		2.84
Total	$	147,972		0.76		$	157,446		0.83		$	160,621		0.87		$	165,619		0.89		$	167,703	0.87



Changes in Allowance for Loan and Lease Losses

	Quarter Ended															Change From
	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Mar. 31,
(In thousands)	2019			2018			2018			2018			2018			2018			2018
Balance, beginning of period	$	157,446		$	160,621		$	165,619		$	167,703		$	171,041		$	(3,175	)	$	(13,595	)
Charge-offs	(24,431		)	(27,227		)	(19,448		)	(18,188		)	(19,865		)	2,796			(4,566		)
Recoveries	5,777			5,913			12,658			5,418			5,714			(136		)	63
Net (charge-offs) recoveries	(18,654		)	(21,314		)	(6,790		)	(12,770		)	(14,151		)	2,660			(4,503		)
Provision for credit losses	10,122			18,894			2,270			14,236			11,368			(8,772		)	(1,246		)
Other	(942		)	(755		)	(478		)	(3,550		)	(555		)	(187		)	(387		)
Balance, end of period	$	147,972		$	157,446		$	160,621		$	165,619		$	167,703		$	(9,474	)	$	(19,731	)



Net Charge-offs

	Quarter Ended
	Mar. 31,					Dec. 31,					Sep. 30,					Jun. 30,					Mar. 31,
	2019					2018					2018					2018					2018
(Dollars in thousands)	Balance			Rate⁽¹⁾		Balance			Rate⁽¹⁾		Balance			Rate⁽¹⁾		Balance			Rate⁽¹⁾		Balance			Rate⁽¹⁾
Consumer real estate:
First mortgage lien	$	628		0.10	%	$	123		0.02	%	$	(3,721	)	(0.82	)%	$	714		0.16	%	$	790		0.16	%
Junior lien	(180		)	(0.02	)	(210		)	(0.03	)	(2,709		)	(0.37	)	64			0.01		327			0.05
Total consumer real estate	448			0.03		(87		)	(0.01	)	(6,430		)	(0.55	)	778			0.07		1,117			0.09
Commercial	2,088			0.22		3,406			0.36		(8		)	—		(27		)	—		(14		)	—
Leasing and equipment finance	2,470			0.21		2,067			0.18		1,930			0.17		2,106			0.18		1,340			0.11
Inventory finance	2,087			0.24		4,629			0.61		637			0.09		517			0.06		409			0.05
Auto finance	10,182			2.21		9,887			1.86		9,485			1.56		8,516			1.26		10,656			1.41
Other	1,379			N.M.		1,412			N.M.		1,176			N.M.		880			N.M.		643			N.M.
Total	$	18,654		0.39		$	21,314		0.46		$	6,790		0.15		$	12,770		0.27		$	14,151		0.29

N.M. Not Meaningful

(1) Annualized net charge-off rate based on average loans and leases



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Summary of Credit Quality Data (Unaudited), Continued


Over 60-Day Delinquencies as a Percentage of Portfolio⁽¹⁾
											Change From
	At Mar. 31,		At Dec. 31,		At Sep. 30,		At Jun. 30,		At Mar. 31,		Dec. 31,			Mar. 31,
	2019		2018		2018		2018		2018		2018			2018
Consumer real estate:
First mortgage lien	0.20	%	0.19	%	0.18	%	0.20	%	0.23	%	1		bps	(3	)	bps
Junior lien	0.08		0.04		0.04		0.07		0.06		4			2
Total consumer real estate	0.14		0.11		0.10		0.12		0.13		3			1
Commercial	—		—		—		—		—		—			—
Leasing and equipment finance	0.20		0.23		0.15		0.11		0.11		(3	)		9
Inventory finance	—		0.01		—		—		—		(1	)		—
Auto finance	0.38		0.59		0.41		0.33		0.24		(21	)		14
Other	0.11		0.14		0.30		0.16		0.24		(3	)		(13	)
Subtotal	0.12		0.15		0.11		0.11		0.09		(3	)		3
Portfolios acquired with deteriorated credit quality	6.75		4.65		16.70		13.48		12.95		210			(620	)
Total delinquencies	0.12		0.15		0.12		0.11		0.10		(3	)		2


(1)	Excludes non-accrual loans and leases



Non-performing Assets
																Change From
	At Mar. 31,			At Dec. 31,			At Sep. 30,			At Jun. 30,			At Mar. 31,			Dec. 31,				Mar. 31,
(Dollars in thousands)	2019			2018			2018			2018			2018			2018				2018
Non-accrual loans and leases:
Consumer real estate	$	65,518		$	58,765		$	55,092		$	49,155		$	84,237		$	6,753			$	(18,719	)
Commercial	7,529			15,025			9,888			9,978			11,401			(7,496		)		(3,872		)
Leasing and equipment finance	20,235			15,264			16,061			16,300			19,968			4,971				267
Inventory finance	969			8,283			1,640			2,093			3,621			(7,314		)		(2,652		)
Auto finance	9,033			8,578			7,613			7,312			7,199			455				1,834
Other	1			3			2			21			2			(2		)		(1		)
Total non-accrual loans and leases	103,285			105,918			90,296			84,859			126,428			(2,633		)		(23,143		)
Other real estate owned	18,361			17,403			19,079			16,266			17,179			958				1,182
Total non-performing assets	$	121,646		$	123,321		$	109,375		$	101,125		$	143,607		$	(1,675	)		$	(21,961	)

Non-accrual loans and leases as a percentage of total loans and leases	0.53		%	0.56		%	0.49		%	0.46		%	0.65		%	(3		)	bps	(12		)	bps
Non-performing assets as a percentage of total loans and leases and other real estate owned	0.63			0.65			0.59			0.54			0.74			(2		)		(11		)
Allowance for loan and lease losses as a percentage of non-accrual loans and leases	143.27			148.65			177.88			195.17			132.65			(538		)		1,062



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Capital Information (Unaudited)

	At or For the Quarter Ended															Change From
(Dollars in thousands, except per share data)	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Mar. 31,
(Dollars in thousands, except per share data)	2019			2018			2018			2018			2018			2018			2018
Dividends declared per common share	$	0.15		$	0.15		$	0.15		$	0.15		$	0.15		—		%	—		%
Book value per common share	14.93			14.45			14.01			13.79			13.89			3.3			7.5
Tangible book value per common share⁽¹⁾	13.86			13.38			12.96			12.73			12.84			3.6			7.9
Common equity to assets	10.02		%	9.99		%	10.21		%	9.97		%	10.06		%	3		bps	(4	)	bps
Tangible common equity to tangible assets⁽¹⁾	9.37			9.32			9.51			9.28			9.37			5			—

Regulatory Capital:⁽²⁾
Common equity Tier 1 capital	$	2,266,244		$	2,224,183		$	2,226,820		$	2,186,528		$	2,222,390		1.9		%	2.0		%
Tier 1 capital	2,459,132			2,408,393			2,412,869			2,375,210			2,414,838			2.1			1.8
Total capital	2,792,419			2,750,581			2,754,615			2,728,076			2,786,637			1.5			0.2

Common equity Tier 1 capital ratio	10.79		%	10.82		%	11.04		%	10.60		%	10.57		%	(3	)	bps	22		bps
Tier 1 risk-based capital ratio	11.71			11.72			11.96			11.51			11.49			(1	)		22
Total risk-based capital ratio	13.30			13.38			13.66			13.22			13.26			(8	)		4
Tier 1 leverage ratio	10.26			10.44			10.58			10.31			10.52			(18	)		(26	)


(1)	See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables


(2)	March 31, 2019 amounts are preliminary pending completion and filing of the Company's regulatory reports



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)

Computation of adjusted diluted earnings per common share:

		Quarter Ended
		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
(Dollars in thousands, except per share data)		2019		2018		2018		2018		2018
Net income available to common stockholders		$	68,001	$	83,158	$	83,702	$	56,255	$	66,174
Less: Earnings allocated to participating securities		13		12		13		8		9
Earnings allocated to common stock	(a)	67,988		83,146		83,689		56,247		66,165
Plus: Merger-related expenses		9,458		—		—		—		—
Plus: Consumer Financial Protection Bureau ("CFPB")/Office of the Comptroller of the Currency ("OCC") settlement adjustment		—		—		—		32,000		—
Less: Related income tax expense		2,252		—		—		6,491		—
Adjusted earnings allocated to common stock	(b)	$	75,194	$	83,146	$	83,689	$	81,756	$	66,165

Weighted-average common shares outstanding used in diluted earnings per common share calculation	(c)	162,427,823		163,878,805		165,533,225		166,857,640		169,997,146

Diluted earnings per common share	(a) / (c)	$	0.42	$	0.51	$	0.51	$	0.34	$	0.39
Adjusted diluted earnings per common share	(b) / (c)	0.46		0.51		0.51		0.49		0.39



Computation of net charge-off rate excluding auto finance:

		Quarter Ended
		Mar. 31,			Dec. 31,			Mar. 31,
(Dollars in thousands)		2019			2018			2018
Net charge-offs	(a)	$	18,654		$	21,314		$	14,151
Less: Auto finance net charge-offs		10,182			9,887			10,656
Total net charge-offs excluding auto finance net charge-offs	(b)	8,472			11,427			3,495

Average total loans and leases	(c)	$	19,186,266		$	18,554,629		$	19,253,483
Less: Average auto finance loans		1,841,130			2,121,969			3,020,187
Average total loans and leases excluding auto finance loans	(d)	$	17,345,136		$	16,432,660		$	16,233,296

Net charge-off rate⁽¹⁾	(a) / (c)	0.39		%	0.46		%	0.29		%
Net charge-off rate excluding auto finance net charge-offs⁽¹⁾	(b) / (d)	0.20			0.28			0.09


(1)	Annualized



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued

Computation of adjusted return on average common equity, return on average tangible common equity and adjusted return on average tangible common equity:

		Quarter Ended
		Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
(Dollars in thousands)		2019			2018			2018			2018			2018
Net income available to common stockholders used in ROACE calculation	(a)	$	68,001		$	83,158		$	83,702		$	56,255		$	66,174
Plus: Other intangibles amortization⁽¹⁾		814			847			913			835			831
Less: Related income tax expense		194			198			220			201			199
Net income available to common stockholders used in ROATCE calculation	(b)	$	68,621		$	83,807		$	84,395		$	56,889		$	66,806

Adjusted net income available to common stockholders:
Net income available to common stockholders		$	68,001		$	83,158		$	83,702		$	56,255		$	66,174
Plus: Merger-related expenses		9,458			—			—			—			—
Plus: CFPB/OCC settlement adjustment		—			—			—			32,000			—
Less: Related income tax expense		2,252			—			—			6,491			—
Net income available to common stockholders used in adjusted ROACE calculation	(c)	75,207			83,158			83,702			81,764			66,174
Plus: Other intangibles amortization⁽¹⁾		814			847			913			835			831
Less: Related income tax expense		194			198			220			201			199
Net income available to common stockholders used in adjusted ROATCE calculation	(d)	$	75,827		$	83,807		$	84,395		$	82,398		$	66,806

Average balances:
Total equity		$	2,579,250		$	2,517,870		$	2,511,983		$	2,512,128		$	2,580,920
Less: Non-controlling interest in subsidiaries		24,521			21,918			23,548			28,654			23,191
Total TCF Financial Corporation stockholders' equity		2,554,729			2,495,952			2,488,435			2,483,474			2,557,729
Less: Preferred stock		169,302			169,302			169,302			169,302			200,404
Average total common stockholders' equity used in ROACE calculation	(e)	2,385,427			2,326,650			2,319,133			2,314,172			2,357,325
Less: Goodwill, net		154,757			154,757			154,757			154,757			154,757
Less: Other intangibles, net⁽¹⁾		20,102			20,931			21,798			22,672			23,274
Average tangible common stockholders' equity used in ROATCE calculation	(f)	$	2,210,568		$	2,150,962		$	2,142,578		$	2,136,743		$	2,179,294

Adjusted average total common stockholders' equity:
Average total common stockholders' equity		$	2,385,427		$	2,326,650		$	2,319,133		$	2,314,172		$	2,357,325
Plus: CFPB/OCC settlement adjustment to average total common stockholders' equity		—			—			—			4,205			—
Average total common stockholders' equity used in adjusted ROACE calculation	(g)	2,385,427			2,326,650			2,319,133			2,318,377			2,357,325
Less: Goodwill, net		154,757			154,757			154,757			154,757			154,757
Less: Other intangibles, net⁽¹⁾		20,102			20,931			21,798			22,672			23,274
Average tangible common stockholders' equity used in adjusted ROATCE calculation	(h)	$	2,210,568		$	2,150,962		$	2,142,578		$	2,140,948		$	2,179,294

ROACE⁽²⁾	(a) / (e)	11.40		%	14.30		%	14.44		%	9.72		%	11.23		%
Adjusted ROACE⁽²⁾	(c) / (g)	12.61			14.30			14.44			14.11			11.23
ROATCE⁽²⁾	(b) / (f)	12.42			15.59			15.76			10.65			12.26
Adjusted ROATCE⁽²⁾	(d) / (h)	13.72			15.59			15.76			15.39			12.26


(1)	Includes non-mortgage servicing assets


(2)	Annualized



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued

Computation of adjusted efficiency ratio:

		Quarter Ended
		Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
(Dollars in thousands)		2019			2018			2018			2018			2018
Non-interest expense	(a)	$	253,075		$	249,958		$	246,423		$	272,039		$	245,980
Less: Merger-related expenses		9,458			—			—			—			—
Less: CFPB/OCC settlement adjustment		—			—			—			32,000			—
Adjusted non-interest expense	(b)	$	243,617		$	249,958		$	246,423		$	240,039		$	245,980

Net interest income		$	250,907		$	248,888		$	249,121		$	250,799		$	243,199
Non-interest income		107,026			128,133			116,445			114,103			112,204
Total revenue	(c)	$	357,933		$	377,021		$	365,566		$	364,902		$	355,403

Efficiency ratio	(a) / (c)	70.70		%	66.30		%	67.41		%	74.55		%	69.21		%
Adjusted efficiency ratio	(b) / (c)	68.06			66.30			67.41			65.78			69.21



Computation of tangible common equity to tangible assets and tangible book value per common share:

		At Mar. 31,			At Dec. 31,			At Sep. 30,			At Jun. 30,			At Mar. 31,
(Dollars in thousands, except per share data)		2019			2018			2018			2018			2018
Total equity		$	2,645,845		$	2,556,260		$	2,528,012		$	2,504,578		$	2,550,950
Less: Non-controlling interest in subsidiaries		29,452			18,459			21,154			23,646			28,437
Total TCF Financial Corporation stockholders' equity		2,616,393			2,537,801			2,506,858			2,480,932			2,522,513
Less: Preferred stock		169,302			169,302			169,302			169,302			169,302
Total common stockholders' equity	(a)	2,447,091			2,368,499			2,337,556			2,311,630			2,353,211
Less: Goodwill, net		154,757			154,757			154,757			154,757			154,757
Less: Other intangibles, net⁽¹⁾		19,704			20,518			21,364			22,247			23,112
Tangible common stockholders' equity	(b)	$	2,272,630		$	2,193,224		$	2,161,435		$	2,134,626		$	2,175,342

Total assets	(c)	$	24,418,715		$	23,699,612		$	22,904,785		$	23,184,462		$	23,385,052
Less: Goodwill, net		154,757			154,757			154,757			154,757			154,757
Less: Other intangibles, net⁽¹⁾		19,704			20,518			21,364			22,247			23,112
Tangible assets	(d)	$	24,244,254		$	23,524,337		$	22,728,664		$	23,007,458		$	23,207,183

Common stock shares outstanding	(e)	163,951,155			163,923,227			166,812,524			167,684,971			169,415,834

Common equity to assets	(a) / (c)	10.02		%	9.99		%	10.21		%	9.97		%	10.06		%
Tangible common equity to tangible assets	(b) / (d)	9.37			9.32			9.51			9.28			9.37

Book value per common share	(a) / (e)	$	14.93		$	14.45		$	14.01		$	13.79		$	13.89
Tangible book value per common share	(b) / (e)	13.86			13.38			12.96			12.73			12.84


(1)	Includes non-mortgage servicing assets

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