TCF Financial 8-K Results of Operations and Financial Condition

Exhibit 99.1

NEWS RELEASE

CONTACT:	Jason Korstange
	(952) 745-2755
	www.tcfexpress.com
FOR IMMEDIATE RELEASE

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

TCF Reports Third Quarter Earnings and EPS of $.45

THIRD QUARTER HIGHLIGHTS

•Diluted earnings per share of 45 cents⁽¹⁾

•Net income of $61.7 million

•Return on average assets of 2.06 percent

•Return on average common equity of 25.96 percent

•Average Power Assets^Ò increased $1.1 billion, or 16 percent, from 2003

•Net loan and lease charge-offs were $3.7 million, or .17 percent (annualized) of average loans and leases

•Increased checking accounts by 24,096 or 6 percent (annualized), to 1,526,952

•Opened nine new branches during the quarter; 246 new branches since January 1998

EARNINGS SUMMARY

($ in thousands, except per-share data)

	Three Months Ended September 30,								Nine Months Ended September 30,
	2004			2003			Change		2004			2003			Change
Net income	$	61,712		$	35,964		71.6	%	$	187,591		$	156,382		20.0	%
Diluted earnings per common share (1)	.45			.26			73.1		1.36			1.10			23.6
Financial Ratios
Return on average assets	2.06		%	1.24		%			2.12		%	1.76		%
Return on average common equity	25.96			15.77					26.56			22.04
Net interest margin	4.56			4.57					4.54			4.49

(1)During the third quarter of 2004, TCF announced and completed a two-for-one stock split of its common stock in the form of a 100 percent stock dividend.  As a result of the two-for-one stock split, all prior period share and per share data have been restated.

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WAYZATA, MN, October 14, 2004 – TCF Financial Corporation (TCF) (NYSE: TCB) today reported diluted earnings per share of 45 cents for the third quarter of 2004, compared with 26 cents for the same period of 2003.  Net income for the third quarter of 2004 was $61.7 million, compared with $36 million for the same period of 2003.  Net income for the third quarter of 2003 included $24.6 million after-tax, or 18 cents per diluted share, of losses on termination of debt.  For the third quarter of 2004, return on average assets (“ROA”) was 2.06 percent and return on average common equity (“ROE”) was 25.96 percent, compared with 1.24 percent and 15.77 percent, respectively, for the third quarter of 2003.

Chairman’s Statement

“TCF’s earnings in the third quarter (2.06 percent ROA and 25.96 ROE) reflect the growth of our core businesses which generate high quality Power Assets^® and low-cost Power Liabilities^®,” said William A. Cooper, Chairman and CEO.  “Our focus on growing our core businesses is evidenced by opening new branches, nine during the third quarter, and offering new products like our Premier Checking Plus^SM with Miles Plus^SM Credit Card, launched during the third quarter.”

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Total Revenue

($ in thousands)	Three Months Ended September 30,
	2004			2003			$ Change			% Change
Net interest income	$	124,490		$	119,877		$	4,613		3.8	%
Fees and other revenue:
Fees and service charges	71,353			65,757			5,596			8.5
Card revenue	16,339			12,923			3,416			26.4
ATM revenue	11,474			11,566			(92		)	(.8	)
Investments and insurance commissions	3,057			3,584			(527		)	(14.7	)
Total banking fees and other revenue	102,223			93,830			8,393			8.9
Leasing and equipment finance	6,864			10,652			(3,788		)	(35.6	)
Mortgage banking (1)	4,131			11,304			(7,173		)	(63.5	)
Other	2,585			2,303			282			12.2
Total fees and other revenue	115,803			118,089			(2,286		)	(1.9	)
Gains on sales of securities available for sale	3,679			—			3,679			N.M.
Gains (losses) on termination of debt	—			(37,769		)	37,769			100.0
Total non-interest income	119,482			80,320			39,162			48.8
Total revenue	$	243,972		$	200,197		$	43,775		21.9
Net interest margin	4.56		%	4.57		%
Fees and other revenue as a % of total revenue	47.47			58.99
Fees and other revenue as a % of average assets	3.87			4.08

N.M.  Not meaningful

(1)  See “Mortgage Banking” section below for further discussion of mortgage banking revenue.

Net Interest Income

TCF’s net interest income in the third quarter of 2004 was $124.5 million, up $4.6 million, or 4 percent, from the third quarter of 2003 and up $2.1 million, or 2 percent, from the second quarter of 2004.  Net interest margin in the third quarter of 2004 was 4.56 percent, compared with 4.57 percent last year and 4.53 percent in the second quarter of 2004. The increase in net interest income from the third quarter of 2003 primarily reflects growth in Power Assets partially offset by the reductions in residential real estate loans and mortgage-backed securities (“treasury assets”) and mortgage loans held for sale. Average Power Assets increased $1.1 billion over the third quarter of 2003, while treasury assets declined $419.3 million during the same period.  The decrease in average treasury assets reflects management’s decision to delay investing in long-term fixed-rate treasury assets to replace prepayments and sales of such assets during the very low interest rate environment.  The increase in net interest income and net interest margin in the third quarter from the second quarter of 2004 was primarily driven by a $268.6 million increase in average Power Assets coupled with the favorable impact of the increases in short-term interest rates partially offset by the reductions

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in treasury assets and mortgage loans held for sale, the issuance of $75 million of subordinated debt and the impact of placing a leveraged lease on non-accrual.

Interest Rate Risk

TCF has positioned its balance sheet to benefit from a rising interest rate environment.  TCF’s one-year interest rate gap (the difference between interest-earning assets and interest-bearing liabilities repricing or maturing within the next twelve months), assuming no change in interest rates, was a positive $1.1 billion, or 9 percent of total assets, at September 30, 2004, essentially unchanged from June 30, 2004.  The one-year interest rate gap is subject to a number of assumptions and is only one of a number of interest rate risk measurements and is best used as a general measure of the effect on net interest income of rising or falling interest rates.

Non-interest Income

Total non-interest income in the third quarter of 2004 was $119.5 million, up $39.2 million, or 49 percent, from the third quarter of 2003.  The 2003 third quarter non-interest income included $37.8 million of losses on termination of debt.  There were no debt terminations during 2004.  Banking fees and other revenue increased $8.4 million, or 9 percent, as a result of TCF’s expanding branch network and customer base, new products and services, and increased fees.  Included in banking fees and other revenue are card revenues of $16.3 million, up $3.4 million, or 26 percent, from the third quarter of 2003 primarily reflecting a 16 percent increase in off-line sales volume coupled with a 7 percent increase in the average off-line interchange rate.

Leasing and equipment finance revenues were $6.9 million for the third quarter of 2004, compared with $10.7 million for the 2003 third quarter.  The decline in leasing revenues is the result of a decrease in sales-type revenues of $2.9 million and operating lease revenues of $1.1 million.  Leasing and equipment finance revenues may fluctuate from quarter to quarter based on customer driven factors not within the control of TCF.

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During the 2004 third quarter, TCF took advantage of market conditions and sold $216.3 million of mortgage-backed securities and realized gains of $3.7 million.  There were no sales of securities during the third quarter of 2003.

New Branch Expansion

TCF opened nine new branches during the third quarter of 2004, comprised of five traditional branches and four supermarket branches. TCF has now opened 246 new branches since January 1998. TCF plans to open 14 more new branches in the remainder of 2004, consisting of ten traditional branches and four supermarket branches, bringing the total number of new branch openings in 2004 to 32.  In 2005, TCF plans to open 31 new branches, consisting of 24 traditional branches and seven supermarket branches.

(# of branches)	September, 30 2004		September, 30 2003		December 31, 1997
Total Branches
Minnesota	101		96		75
Illinois	194		189		47
Wisconsin	34		34		28
Michigan	58		54		60
Colorado	26		18		7
Indiana	6		5		—
	419		396		217
New Branches*
Traditional	53		34
Supermarket	193		184
Total	246		218
% of Total Branches	59	%	55	%

*   New branches opened since January 1, 1998.

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Additional information regarding the results of TCF’s new branches opened since January 1, 1998 is summarized as follows:

	At or For the Three Months Ended September 30,
($ in thousands)	2004		2003		Change			% Change
Number of checking accounts	562,496		473,974		88,522			18.7	%
Deposits:
Checking	$	801,571	$	589,035	$	212,536		36.1
Savings	415,643		395,134		20,509			5.2
Money market	58,432		69,783		(11,351		)	(16.3	)
Subtotal	1,275,646		1,053,952		221,694			21.0
Certificates of deposit	140,203		127,478		12,725			10.0
Total deposits	$	1,415,849	$	1,181,430	$	234,419		19.8
Total fees and other revenue	$	40,877	$	33,517	$	7,360		22.0

Power Assets^®

TCF’s Power Asset lending operations continue to generate strong growth.  TCF’s consumer loan average balances increased $733.8 million, or 22 percent, and leasing and equipment finance average balances increased $197.2 million, or 18 percent, from the third quarter of 2003.  “The solid growth in our Power Assets continues to be driven by increased consumer and commercial loan originations during the third quarter,” said Cooper.  The growth in leasing and equipment finance was aided by the March 2004 acquisition of VGM Leasing Inc., (“VGM”) a company specializing in home medical equipment financing, which had $128.1 million of average leasing and equipment finance balances for the third quarter of 2004.

	Average Balances for the Three Months Ended September 30,
($ in thousands)	2004		2003		Change			% Change
Loans and leases*:
Consumer	$	4,099,569	$	3,365,816	$	733,753		21.8	%
Commercial real estate	2,012,790		1,846,204		166,586			9.0
Commercial business	440,010		452,260		(12,250		)	(2.7	)
Leasing and equipment finance	1,320,495		1,123,284		197,211			17.6
Power Assets	$	7,872,864	$	6,787,564	$	1,085,300		16.0

*Excludes residential real estate loans and loans held for sale.

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Power Liabilities^®

“Our continued emphasis on growing our customer base resulted in an increase of 24,096 checking accounts, or 6 percent (annualized), in the third quarter of 2004 to 1,526,952 accounts despite increased competition in all our markets,” said Cooper.  “Our new Premier Checking Plus^SM checking account with the Miles Plus^SM credit card rewards program is an example of unique new product offerings focused on attracting new checking account customers.”  Average Power Liabilities totaled $7.8 billion for the third quarter of 2004, with an average interest rate of .53 percent, down 6 basis points from the same period in 2003.  Average checking, savings and money market balances increased $85.2 million from 2003 despite a $227.5 million reduction in average custodial account balances primarily related to the significant decrease in mortgage banking activity.  Certificates of deposit declined from the third quarter of 2003, as other lower-cost funding sources were available to TCF.  However, certificates of deposit increased $31.3 million from June 30, 2004.

	Average Balances and Rates for the Three Months Ended September 30,
($ in thousands)	2004			2003			Change			% Change
Checking	$	3,657,340		$	3,194,438		$	462,902		14.5	%
Savings	1,925,674			2,143,100			(217,426		)	(10.1	)
Money market	738,769			899,071			(160,302		)	(17.8	)
Subtotal	6,321,783			6,236,609			85,174			1.4
Certificates of deposit	1,458,905			1,644,351			(185,446		)	(11.3	)
Power Liabilities	$	7,780,688		$	7,880,960		$	(100,272	)	(1.3	)
Number of checking accounts, period-end	1,526,952			1,423,702			103,250			7.3
Average rate on deposits	.53		%	.59		%	(6		) bps	N/A

Residential Real Estate Loans and Securities Available for Sale

Average balances of residential real estate loans and securities available for sale (consisting primarily of mortgage-backed securities) totaled $2.6 billion for the third quarter of 2004, a decrease of $419.3 million from the third quarter of 2003.  The decline was the result of the high level of prepayments during the past twelve months coupled with sales of mortgage-backed securities.  At September 30, 2004, the unrealized pre-tax gain on TCF’s securities available for sale portfolio was $2.3 million.

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	Average Balances for the Three Months Ended									Change from
($ in thousands)	September 30, 2004			June 30, 2004			September 30, 2003			June 30, 2004			September 30, 2003
Residential real estate loans	$	1,076,619		$	1,123,062		$	1,344,921		$	(46,443	)	$	(268,302	)
Securities available for sale	1,545,768			1,546,694			1,696,800			(926		)	(151,032		)
Total	$	2,622,387		$	2,669,756		$	3,041,721		$	(47,369	)	$	(419,334	)
Yield	5.46		%	5.47		%	5.61		%	(1		) bps	(15		) bps

Non-interest Expense

Non-interest expense totaled $147.9 million for the 2004 third quarter, up $5.5 million, or 4 percent, from $142.4 million for the 2003 third quarter.  Compensation and employee benefits increased $2.4 million, or 3 percent, from the third quarter of 2003, driven by a $1.8 million increase related to new branches opened during the past 12 months and $396 thousand due to the acquisition of VGM.  Occupancy and equipment expenses increased $1.4 million, or 6 percent, from the third quarter of 2003, with $1.2 million relating to costs associated with new branch expansion.  Deposit account losses increased $1.9 million during the third quarter of 2004 compared with 2003.  The increase in deposit account losses is attributed to the growth in the number of checking accounts and related transaction activity.  Other expenses decreased $897 thousand, or 3 percent, to $31.4 million for the third quarter of 2004.  Contributing to the decline in other expenses was a reduction in mortgage banking expenses of $1 million as a result of a decline in mortgage operations.

	Three Months Ended September 30,				Change
($ in thousands)	2004		2003		$			%
Compensation and employee benefits	$	78,010	$	75,646	$	2,364		3.1	%
Occupancy and equipment	23,673		22,309		1,364			6.1
Advertising and promotions	7,377		6,536		841			12.9
Deposit account losses	7,465		5,593		1,872			33.5
Other	31,401		32,298		(897		)	(2.8	)
Total non-interest expense	$	147,926	$	142,382	$	5,544		3.9

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Credit Quality

At September 30, 2004, TCF’s allowance for loan and lease losses totaled $79 million, or .87 percent of loans and leases, compared with $78.7 million, or .97 percent, at September 30, 2003.  The provision for credit losses for the third quarter of 2004 was $2.6 million, compared with $2.7 million for the third quarter of 2003.  Net loan and lease charge-offs were $3.7 million, or .17 percent (annualized) of average loans and leases, in the 2004 third quarter, compared with $1.7 million, or .08 percent (annualized), for the same period of 2003.   Leasing and equipment finance had net charge-offs of $2 million during the 2004 third quarter, compared with net charge-offs of $834 thousand for the 2003 third quarter.  At September 30, 2004, TCF’s over-30-day delinquency rate was .39 percent, down from .44 percent at June 30, 2004.  Non-accrual loans and leases were $46.7 million, or .51 percent of net loans and leases, at September 30, 2004, compared with $36.8 million, or .41 percent, at June 30, 2004.  Total non-performing assets were $69.5 million, or .58 percent of total assets, at September 30, 2004, up from $56.6 million, or .47 percent, at June 30, 2004.

Included in the non-accrual loans and leases and non-performing assets at September 30, 2004, is TCF’s $18.8 million investment in a leveraged lease with Delta Airlines, Inc. (“Delta”).  Delta is current on its payments to TCF and is aggressively working to restructure its operations.  However, if Delta declares bankruptcy, it would likely result in the write-off of the leveraged lease and the acceleration of related income tax obligations.

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	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands)	2004			2003			2004			2003
Allowance for loan and lease losses:
Balance at beginning of period	$	80,025		$	77,696		$	76,619		$	77,008
Net (charge-offs) recoveries:
Consumer	(1,133		)	(685		)	(2,426		)	(2,187		)
Commercial real estate	(526		)	(60		)	(478		)	(42		)
Commercial business	(30		)	(38		)	(87		)	(735		)
Leasing and equipment finance	(1,999		)	(834		)	(3,271		)	(3,829		)
Residential real estate	(5		)	(71		)	(46		)	(44		)
Total	(3,693		)	(1,688		)	(6,308		)	(6,837		)
Provision for credit losses	2,644			2,658			6,874			8,495
Acquired allowance	—			—			1,791			—
Balance at end of period	$	78,976		$	78,666		$	78,976		$	78,666
Key Indicators:
Allowance for loans and leases as a percentage of total loans and leases	.87		%	.97		%	.87		%	.97		%
Annualized net charge-offs as a percentage of average loans and leases	.17		%	.08		%	.10		%	.11		%
Period-end allowance as a multiple of annualized net charge-offs	5.3		X	11.7		X	9.4		X	8.6		X
Income before income taxes and provision for loan losses as a multiple of net charge-offs	26.0		X	34.3		X	46.1		X	36.4		X

Mortgage Banking

During the third quarter of 2004, TCF announced a restructuring of its mortgage origination businesses and ceased wholesale originations.  The retail originations function will be downsized and integrated with TCF’s consumer lending business by year-end.  During the third quarter of 2004, TCF recorded $1.1 million of expense related to the restructuring.  In late 2004, TCF will cease selling new loan originations to investors and will retain all new loans.  TCF continues to service mortgage loans for investors. TCF’s mortgage banking operations funded $193.1 million in new loans during the third quarter of 2004, down 81 percent from $995.4 million in the third quarter of 2003.

Mortgage banking revenue decreased $7.2 million and was $4.1 million in the third quarter of 2004, compared with $11.3 million for the same 2003 period.  The decrease in mortgage banking revenue was primarily due to an $8.1 million decrease in gains on sales of loans as a result of the significant decrease in

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mortgage refinance activity as well as the above-mentioned restructuring of TCF’s mortgage banking operations.

Income Taxes

TCF’s income tax expense was $31.7 million for the third quarter of 2004, or 33.9 percent of income before income tax expense, compared with $19.2 million, or 34.8 percent, for the comparable 2003 period.  The lower effective income tax rate in the third quarter of 2004 was primarily due to increased investments in affordable housing limited partnerships.

Capital

During the third quarter of 2004, TCF repurchased 908,000 shares of its common stock at an average cost of $29.74 per share.  TCF has 5 million shares remaining in its stock repurchase program authorized by its Board of Directors.  Since 1997, TCF has repurchased 52.7 million shares of its stock, at an average cost of $17.19 per share.

($ in thousands, except per-share data)	At September 30, 2004					At December 31, 2003
Stockholders’ equity	$	965,266				$	920,858
Stockholders’ equity to total assets	8.05		%			8.14		%
Book value per common share	$	6.96				$	6.53
Total risk-based capital	$	961,539		11.23	%	$	841,982		10.73	%
Total risk-based capital “well-capitalized” requirement	$	856,416		10.00	%	$	784,562		10.00	%
Excess risk-based capital over “well-capitalized” requirement	$	105,123		1.23	%	$	57,420		.73	%

Website Information

A live webcast of TCF’s conference call to discuss third quarter earnings will be hosted at TCF’s website, www.tcfexpress.com, on October 14, 2004 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.

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TCF is a Wayzata, Minnesota-based national financial holding company with $12 billion in assets.  TCF has 419 banking offices in Minnesota, Illinois, Michigan, Wisconsin, Colorado and Indiana.  Other TCF affiliates provide leasing and equipment finance, mortgage banking, brokerage, and investments and insurance sales.

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 are subject to a number of risks and uncertainties.  These include but are not limited to possible legislative changes and adverse economic, business and competitive developments such as shrinking interest margins; deposit outflows; ability to increase the number of checking accounts and the possibility that deposit account losses (fraudulent checks, etc.) may increase; 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; changes in accounting policies and guidelines, or monetary, fiscal or tax policies of the federal or state governments; changes in credit and other risks posed by TCF’s loan, lease and investment portfolios, including declines in commercial or residential real estate values or a bankruptcy filing by Delta Airlines, the lessee under a leveraged lease in which TCF holds an equity interest; technological, computer-related or operational difficulties; adverse changes in securities markets; the risk that TCF could be unable to effectively manage the volatility of its mortgage banking business, which could adversely affect earnings; and results of litigation or other significant uncertainties.  Investors should consult TCF’s Annual Report to Shareholders and reports on Forms 10-K, 10-Q and 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 September 30,
	2004		2003			$ Change			% Change
Interest income:
Loans and leases	$	133,295	$	126,854		$	6,441		5.1	%
Securities available for sale	20,414		22,579			(2,165		)	(9.6	)
Loans held for sale	2,931		5,905			(2,974		)	(50.4	)
Investments	773		1,144			(371		)	(32.4	)
Total interest income	157,413		156,482			931			.6
Interest expense:
Deposits	10,318		11,816			(1,498		)	(12.7	)
Borrowings	22,605		24,789			(2,184		)	(8.8	)
Total interest expense	32,923		36,605			(3,682		)	(10.1	)
Net interest income	124,490		119,877			4,613			3.8
Provision for credit losses	2,644		2,658			(14		)	(.5	)
Net interest income after provision for credit losses	121,846		117,219			4,627			3.9
Non-interest income:
Fees and service charges	71,353		65,757			5,596			8.5
Card revenue	16,339		12,923			3,416			26.4
ATM revenue	11,474		11,566			(92		)	(.8	)
Investments and insurance commissions	3,057		3,584			(527		)	(14.7	)
Subtotal	102,223		93,830			8,393			8.9
Leasing and equipment finance	6,864		10,652			(3,788		)	(35.6	)
Mortgage banking	4,131		11,304			(7,173		)	(63.5	)
Other	2,585		2,303			282			12.2
Fees and other revenue	115,803		118,089			(2,286		)	(1.9	)
Gains on sales of securities available for sale	3,679		—			3,679			N.M.
Gains (losses) on termination of debt	—		(37,769		)	37,769			100.0
Other non-interest income	3,679		(37,769		)	41,448			N.M.
Total non-interest income	119,482		80,320			39,162			48.8
Non-interest expense:
Compensation and employee benefits	78,010		75,646			2,364			3.1
Occupancy and equipment	23,673		22,309			1,364			6.1
Advertising and promotions	7,377		6,536			841			12.9
Other	38,866		37,891			975			2.6
Total non-interest expense	147,926		142,382			5,544			3.9
Income before income tax expense	93,402		55,157			38,245			69.3
Income tax expense	31,690		19,193			12,497			65.1
Net income	$	61,712	$	35,964		$	25,748		71.6
Net income per common share:
Basic	$	.45	$	.26		$	.19		73.1
Diluted	$	.45	$	.26		$	.19		73.1
Dividends declared per common share	$	.1875	$	.1625		$	.025		15.4
Average common and common equivalent shares outstanding (in thousands):
Basic	136,184		139,896			(3,712		)	(2.7	)
Diluted	136,844		140,450			(3,606		)	(2.6	)

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)

	Nine Months Ended September 30,
	2004		2003			$ Change			% Change
Interest income:
Loans and leases	$	386,709	$	388,129		$	(1,420	)	(.4	) %
Securities available for sale	61,159		83,826			(22,667		)	(27.0	)
Loans held for sale	9,112		16,919			(7,807		)	(46.1	)
Investments	2,441		3,726			(1,285		)	(34.5	)
Total interest income	459,421		492,600			(33,179		)	(6.7	)
Interest expense:
Deposits	30,331		45,805			(15,474		)	(33.8	)
Borrowings	63,688		84,742			(21,054		)	(24.8	)
Total interest expense	94,019		130,547			(36,528		)	(28.0	)
Net interest income	365,402		362,053			3,349			.9
Provision for credit losses	6,874		8,495			(1,621		)	(19.1	)
Net interest income after provision for credit losses	358,528		353,558			4,970			1.4
Non-interest income:
Fees and service charges	204,128		182,970			21,158			11.6
Card revenue	45,854		40,922			4,932			12.1
ATM revenue	32,609		33,223			(614		)	(1.8	)
Investments and insurance commissions	9,949		10,864			(915		)	(8.4	)
Subtotal	292,540		267,979			24,561			9.2
Leasing and equipment finance	29,276		35,716			(6,440		)	(18.0	)
Mortgage banking	12,376		6,146			6,230			101.4
Other	6,657		6,086			571			9.4
Fees and other revenue	340,849		315,927			24,922			7.9
Gains on sales of securities available for sale	16,396		32,832			(16,436		)	(50.1	)
Gains (losses) on termination of debt	—		(44,345		)	44,345			100.0
Gain on sale of loan servicing	706		—			706			N.M.
Other non-interest income	17,102		(11,513		)	28,615			N.M.
Total non-interest income	357,951		304,414			53,537			17.6
Non-interest expense:
Compensation and employee benefits	236,486		226,052			10,434			4.6
Occupancy and equipment	70,560		65,439			5,121			7.8
Advertising and promotions	19,785		19,332			453			2.3
Other	105,707		107,042			(1,335		)	(1.2	)
Total non-interest expense	432,538		417,865			14,673			3.5
Income before income tax expense	283,941		240,107			43,834			18.3
Income tax expense	96,350		83,725			12,625			15.1
Net income	$	187,591	$	156,382		$	31,209		20.0
Net income per common share:
Basic	$	1.37	$	1.10		$	.27		24.5
Diluted	$	1.36	$	1.10		$	.26		23.6
Dividends declared per common share	$	.5625	$	.4875		$	.075		15.4
Average common and common equivalent shares outstanding (in thousands):
Basic	137,223		141,832			(4,609		)	(3.2	)
Diluted	137,842		142,348			(4,506		)	(3.2	)

N.M.  Not meaningful.

–more–

15

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

	At September 30, 2004			At December 31, 2003			At September 30, 2003			% Change from
										December 31, 2003		September 30, 2003
ASSETS
Cash and due from banks	$	354,651		$	370,054		$	389,237		(4.2	)%	(8.9	)%
Investments	92,177			75,223			75,600			22.5		21.9
Securities available for sale	1,330,708			1,533,288			1,604,282			(13.2	)	(17.1	)
Loans held for sale	330,647			335,372			429,999			(1.4	)	(23.1	)
Loans and leases:
Consumer	4,222,025			3,630,341			3,456,167			16.3		22.2
Commercial real estate	2,031,031			1,916,701			1,838,728			6.0		10.5
Commercial business	444,632			427,696			426,694			4.0		4.2
Leasing and equipment finance	1,328,116			1,160,397			1,142,094			14.5		16.3
Subtotal	8,025,804			7,135,135			6,863,683			12.5		16.9
Residential real estate	1,047,079			1,212,643			1,283,640			(13.7	)	(18.4	)
Total loans and leases	9,072,883			8,347,778			8,147,323			8.7		11.4
Allowance for loan and lease losses	(78,976		)	(76,619		)	(78,666		)	3.1		.4
Net loans and leases	8,993,907			8,271,159			8,068,657			8.7		11.5
Premises and equipment	316,833			282,193			266,597			12.3		18.8
Goodwill	152,599			145,462			145,462			4.9		4.9
Deposit base intangibles	4,660			5,907			6,323			(21.1	)	(26.3	)
Mortgage servicing rights	51,474			52,036			49,119			(1.1	)	4.8
Other assets	370,293			248,321			218,630			49.1		69.4
	$	11,997,949		$	11,319,015		$	11,253,906		6.0		6.6
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Checking	$	3,692,132		$	3,248,412		$	3,229,072		13.7		14.3
Savings	1,924,481			1,905,923			2,000,194			1.0		(3.8	)
Money market	707,046			845,291			886,597			(16.4	)	(20.3	)
Subtotal	6,323,659			5,999,626			6,115,863			5.4		3.4
Certificates of deposit	1,471,164			1,612,123			1,596,740			(8.7	)	(7.9	)
Total deposits	7,794,823			7,611,749			7,712,603			2.4		1.1
Short-term borrowings	845,499			878,412			900,835			(3.7	)	(6.1	)
Long-term borrowings	2,057,608			1,536,413			1,342,890			33.9		53.2
Total borrowings	2,903,107			2,414,825			2,243,725			20.2		29.4
Accrued expenses and other liabilities	334,753			371,583			365,610			(9.9	)	(8.4	)
Total liabilities	11,032,683			10,398,157			10,321,938			6.1		6.9
Stockholders’ equity:
Preferred stock, par value $.01 per share, 30,000,000 shares authorized; none issued or outstanding	—			—			—			—		—
Common stock, par value $.01 per share, 560,000,000 shares authorized; 184,964,602; 185,026,710 and 185,049,274 shares issued	1,850			925			925			100.0		100.0
Additional paid-in capital	517,537			518,878			517,605			(.3	)	—
Retained earnings, subject to certain restrictions	1,344,036			1,234,804			1,198,164			8.8		12.2
Accumulated other comprehensive income	1,471			5,652			13,385			(74.0	)	(89.0	)
Treasury stock at cost, 46,200,454; 44,074,050 and 42,534,332 shares, and other	(899,628		)	(839,401		)	(798,111		)	7.2		12.7
Total stockholders’ equity	965,266			920,858			931,968			4.8		3.6
	$	11,997,949		$	11,319,015		$	11,253,906		6.0		6.6

N.M.  Not meaningful.

–more–

16

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

Allowance for loan and lease losses:

	At or For the Nine Months Ended September 30, 2004									At or For the Year Ended December 31, 2003
	Allowance		Allowance as a % of Portfolio							Allowance			Allowance as a % of Portfolio
					Net Charge-offs (Recoveries) (1)										Net Charge-offs
					$			%							$		%
Consumer	$	9,348	.22	%	$		2,426	.08	%	$	9,084		.25	%	$	3,189	.10	%
Commercial real estate	24,961		1.23		478			.03		25,142			1.31		1,336		.07
Commercial business	10,923		2.46		87			.03		11,797			2.76		782		.18
Leasing and equipment finance	16,841		1.27		3,271			.34		13,515			1.16		7,537		.69
Unallocated	16,139		n/a		—			n/a		16,139			n/a		—		n/a
Subtotal	78,212		0.97		6,262			.11		75,677			1.06		12,844		.19
Residential real estate	764		.07		46			.01		942			.08		77		.01
Total	$	78,976	.87		$	6,308		.10		$		76,619	.92		$	12,921	.16

Non-performing assets:

	At September 30, 2004		At June 30, 2004		At December 31, 2003		$ Change from
							June 30, 2004					December 31, 2003
Non-accrual loans and leases:
Consumer	$	11,959	$	11,718	$	12,052	$		241			$	(93		)
Commercial real estate	1,026		6,750		2,490		(5,724				)	(1,464			)
Commercial business	2,861		3,490		2,931		(629				)	(70			)
Leasing and equipment finance, net	27,844		10,398		13,241		17,446					14,603
Residential real estate	2,763		3,886		3,993		(1,123				)	(1,230			)
Total non-accrual loans and leases, net	46,453		36,242		34,707		10,211					11,746
Non-recourse discounted lease rentals	270		514		699		(244				)	(429			)
Total non-accrual loans and leases, gross	46,723		36,756		35,406		9,967					11,317
Other real estate owned:
Residential real estate	12,028		10,790		20,462		1,238					(8,434			)
Commercial real estate	10,717		9,078		12,992		1,639					(2,275			)
Total other real estate owned	22,745		19,868		33,454		2,877					(10,709			)
Total non-performing assets, gross	$	69,468	$	56,624	$	68,860	$			12,844		$	608
Total non-performing assets, net	$	69,198	$	56,110	$	68,161	$	13,088				$		1,037

Delinquency data (2):

	At September 30, 2004				At June 30, 2004					December 31, 2003
	Principal Balances		% of Portfolio		Principal Balances			% of Portfolio		Principal Balances			% of Portfolio
Consumer	$	15,256	.36	%	$		15,078	.38	%	$	17,673		.49	%
Commercial real estate	1,958		.10		101			.01		58			—
Commercial business	1,282		.29		383			.09		282			.07
Leasing and equipment finance	7,064		.54		15,774			1.22		10,619			.93
Residential real estate	9,776		.94		7,597			.70		10,112			.84
Total	$	35,336	.39		$	38,933		.44		$		38,744	.47

Potential Problem Loans and Leases (3):

	At September 30, 2004		At June 30, 2004		At December 31, 2003		$ Change from
							June 30, 2004			December 31, 2003
Commercial real estate	$	31,397	$	28,052	$	20,279	$	3,345		$		11,118
Commercial business	21,607		14,999		12,721		6,608			8,886
Leasing and equipment finance	17,669		32,754		15,094		(15,085		)	2,575
	$	70,673	$	75,805	$	48,094	$	(5,132	)	$	22,579

(1)Annualized.

(2)Excludes non-accrual loans and leases.

(3)Consists of loans and leases primarily classified for regulatory purposes as substandard and reflect the distinct possibility, but not probability, that they will become non-performing or that TCF will not be able to collect all amounts due according to the contractual terms of the loan or lease agreement.

–more–

17

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

	Three Months Ended September 30,
	2004						2003
	Average Balance		Interest		Yields and Rates (1)		Average Balance		Interest		Yields and Rates (1)
ASSETS
Investments	$	94,910	$	773	3.25	%	$	89,182	$	1,144	5.10	%
Securities available for sale	1,545,768		20,414		5.28		1,696,800		22,579		5.32
Loans held for sale	327,953		2,931		3.56		572,827		5,905		4.09
Loans and leases:
Consumer	4,099,569		62,494		6.06		3,365,816		54,440		6.42
Commercial real estate	2,012,790		27,751		5.49		1,846,204		26,658		5.73
Commercial business	440,010		4,773		4.32		452,260		4,726		4.15
Leasing and equipment finance	1,320,495		22,855		6.92		1,123,284		20,929		7.45
Subtotal	7,872,864		117,873		5.96		6,787,564		106,753		6.25
Residential real estate	1,076,619		15,422		5.72		1,344,921		20,101		5.97
Total loans and leases	8,949,483		133,295		5.93		8,132,485		126,854		6.20
Total interest-earning assets	10,918,114		157,413		5.75		10,491,294		156,482		5.94
Other assets	1,057,444						1,074,046
Total assets	$	11,975,558					$	11,565,340
LIABILITIES AND STOCKHOLDERS’ EQUITY
Non-interest bearing deposits	$	2,367,229					$	2,389,237
Interest-bearing deposits:
Checking	1,388,315		1,013		.29		1,095,507		218		.08
Savings	1,827,470		1,839		.40		1,852,794		1,589		.34
Money market	738,769		704		.38		899,071		891		.39
Subtotal	3,954,554		3,556		.36		3,847,372		2,698		.28
Certificates of deposit	1,458,905		6,762		1.84		1,644,351		9,118		2.20
Total interest-bearing deposits	5,413,459		10,318		.76		5,491,723		11,816		.86
Total deposits	7,780,688		10,318		.53		7,880,960		11,816		.59
Borrowings:
Short-term borrowings	824,955		3,057		1.47		673,312		1,931		1.14
Long-term borrowings	2,059,525		19,548		3.84		1,721,151		22,858		5.34
Total borrowings	2,884,480		22,605		3.17		2,394,463		24,789		4.16
Total deposits and borrowings	10,665,168		32,923		1.24		10,275,423		36,605		1.42
Other liabilities	359,488						377,779
Total liabilities	11,024,656						10,653,202
Stockholders’ equity	950,902						912,138
Total liabilities and stockholders’ equity	$	11,975,558					$	11,565,340
Net interest income and margin			$	124,490	4.56	%			$	119,877	4.57	%

(1)  Annualized.

–more–

18

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

	Nine Months Ended September 30,
	2004						2003
	Average				Yields and		Average				Yields and
	Balance		Interest		Rates (1)		Balance		Interest		Rates (1)
ASSETS
Investments	$	131,290	$	2,441	2.48	%	$	110,237	$	3,726	4.52	%
Securities available for sale	1,537,310		61,159		5.30		2,021,036		83,826		5.53
Loans held for sale	357,354		9,112		3.41		532,101		16,919		4.25
Loans and leases:
Consumer	3,903,990		177,209		6.06		3,206,777		159,314		6.64
Commercial real estate	1,980,380		80,972		5.46		1,847,455		82,577		5.98
Commercial business	432,174		13,472		4.16		452,820		14,582		4.31
Leasing and equipment finance	1,267,102		66,333		6.98		1,074,912		61,594		7.64
Subtotal	7,583,646		337,986		5.95		6,581,964		318,067		6.46
Residential real estate	1,130,840		48,723		5.75		1,502,642		70,062		6.22
Total loans and leases	8,714,486		386,709		5.92		8,084,606		388,129		6.41
Total interest-earning assets	10,740,440		459,421		5.71		10,747,980		492,600		6.12
Other assets	1,046,080						1,070,006
Total assets	$	11,786,520					$	11,817,986
LIABILITIES AND STOCKHOLDERS’ EQUITY
Non-interest bearing deposits	$	2,345,709					$	2,243,970
Interest-bearing deposits:
Checking	1,301,520		2,120		.22		1,048,907		735		.09
Savings	1,824,950		5,152		.38		1,858,409		7,516		.54
Money market	790,128		2,199		.37		894,305		3,624		.54
Subtotal	3,916,598		9,471		.32		3,801,621		11,875		.42
Certificates of deposit	1,502,064		20,860		1.86		1,789,377		33,930		2.54
Total interest-bearing deposits	5,418,662		30,331		.75		5,590,998		45,805		1.10
Total deposits	7,764,371		30,331		.52		7,834,968		45,805		.78
Borrowings:
Short-term borrowings	743,754		7,522		1.35		695,008		6,520		1.25
Long-term borrowings	1,963,440		56,166		3.88		1,920,269		78,222		5.49
Total borrowings	2,707,194		63,688		3.18		2,615,277		84,742		4.36
Total deposits and borrowings	10,471,565		94,019		1.21		10,450,245		130,547		1.68
Other liabilities	373,089						421,862
Total liabilities	10,844,654						10,872,107
Stockholders’ equity	941,866						945,879
Total liabilities and stockholders’ equity	$	11,786,520					$	11,817,986
Net interest income and margin			$	365,402	4.54	%			$	362,053	4.49	%

(1)     Annualized.

–more–

19

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME AND FINANCIAL RATIOS

(Dollars in thousands, except per-share data)

(Unaudited)

	Three Months Ended
	Sep. 30, 2004			Jun. 30, 2004			Mar. 31, 2004			Dec. 31, 2003			Sep. 30, 2003
Interest income:
Loans and leases	$	133,295		$	128,141		$	125,273		$	125,042		$	126,854
Securities available for sale	20,414			20,413			20,332			19,995			22,579
Loans held for sale	2,931			3,340			2,841			3,097			5,905
Investments	773			895			773			785			1,144
Total interest income	157,413			152,789			149,219			148,919			156,482
Interest expense:
Deposits	10,318			9,474			10,539			10,990			11,816
Borrowings	22,605			20,896			20,187			18,837			24,789
Total interest expense	32,923			30,370			30,726			29,827			36,605
Net interest income	124,490			122,419			118,493			119,092			119,877
Provision for credit losses	2,644			3,070			1,160			4,037			2,658
Net interest income after provision for credit losses	121,846			119,349			117,333			115,055			117,219
Non-interest income:
Fees and service charges	71,353			73,116			59,659			64,486			65,757
Card revenue	16,339			16,024			13,491			12,069			12,923
ATM revenue	11,474			11,138			9,997			10,400			11,566
Investments and insurance commissions	3,057			3,430			3,462			3,037			3,584
Subtotal	102,223			103,708			86,609			89,992			93,830
Leasing and equipment finance	6,864			12,245			10,167			15,372			10,652
Mortgage banking	4,131			4,790			3,455			6,573			11,304
Other	2,585			1,844			2,228			2,928			2,303
Fees and other revenue	115,803			122,587			102,459			114,865			118,089
Gains on sales of securities available for sale	3,679			—			12,717			—			—
Gains (losses) on termination of debt	—			—			—			—			(37,769		)
Gain on sale of loan servicing	—			706			—			—			—
Other non-interest income	3,679			706			12,717			—			(37,769		)
Total non-interest income	119,482			123,293			115,176			114,865			80,320
Non-interest expense:
Compensation and employee benefits	78,010			79,597			78,879			76,752			75,646
Occupancy and equipment	23,673			23,397			23,490			22,984			22,309
Advertising and promotions	7,377			6,498			5,910			6,204			6,536
Other	38,866			34,414			32,427			36,304			37,891
Total non-interest expense	147,926			143,906			140,706			142,244			142,382
Income before income tax expense	93,402			98,736			91,803			87,676			55,157
Income tax expense	31,690			33,518			31,142			28,180			19,193
Net income	$	61,712		$	65,218		$	60,661		$	59,496		$	35,964
Net income per common share:
Basic	$	.45		$	.47		$	.44		$	.43		$	.26
Diluted	$	.45		$	.47		$	.44		$	.43		$	.26
Dividends declared per common share	$	.1875		$	.1875		$	.1875		$	.1625		$	.1625
Financial Ratios:
Return on average assets(1)	2.06		%	2.20		%	2.11		%	2.13		%	1.24		%
Return on average common equity(1)	25.96			27.68			25.90			26.18			15.77
Net interest margin(1)	4.56			4.53			4.52			4.68			4.57
Net charge-offs as a percentage of average loans and leases(1)	.17			.10			.02			.30			.08
Average total equity to average assets	7.94			7.95			8.13			8.13			7.89

(1)  Annualized.

–more–

20

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS AND SUPPLEMENTAL INFORMATION

(In thousands)

(Unaudited)

	Sept. 30, 2004			Jun. 30, 2004			Mar. 31, 2004			Dec. 31, 2003			Sept. 30, 2003
ASSETS
Cash and due from banks	$	351,383		$	347,551		$	326,731		$	339,531		$	372,777
Investments	94,910			157,591			141,770			75,397			89,182
Securities available for sale	1,545,768			1,546,694			1,519,374			1,505,379			1,696,800
Loans held for sale	327,953			385,193			359,238			359,650			572,827
Loans and leases:
Consumer	4,099,569			3,904,194			3,706,061			3,529,177			3,365,816
Commercial real estate	2,012,790			1,985,498			1,942,494			1,875,215			1,846,204
Commercial business	440,010			428,602			427,824			424,310			452,260
Leasing and equipment finance	1,320,495			1,285,989			1,194,235			1,152,753			1,123,284
Subtotal	7,872,864			7,604,283			7,270,614			6,981,455			6,787,564
Residential real estate	1,076,619			1,123,062			1,193,435			1,256,847			1,344,921
Total loans and leases	8,949,483			8,727,345			8,464,049			8,238,302			8,132,485
Allowance for loan and lease losses	(80,077		)	(79,169		)	(77,655		)	(78,655		)	(78,657		)
Net loans and leases	8,869,406			8,648,176			8,386,394			8,159,647			8,053,828
Premises and equipment	313,068			297,492			287,322			276,541			262,676
Goodwill	152,599			152,599			146,678			145,462			145,462
Deposit base intangibles	4,865			5,280			5,695			6,111			6,529
Mortgage servicing rights	51,380			50,876			51,432			49,955			45,300
Other assets	264,226			264,826			301,010			263,879			319,959
	$	11,975,558		$	11,856,278		$	11,525,644		$	11,181,552		$	11,565,340
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Checking	$	3,657,340		$	3,596,808		$	3,329,383		$	3,194,672		$	3,194,438
Savings	1,925,674			1,982,818			1,923,295			1,931,827			2,143,100
Money market	738,769			799,485			832,695			866,408			899,071
Subtotal	6,321,783			6,379,111			6,085,373			5,992,907			6,236,609
Certificates of deposit	1,458,905			1,467,654			1,580,107			1,607,495			1,644,351
Total deposits	7,780,688			7,846,765			7,665,480			7,600,402			7,880,960
Short-term borrowings	824,955			669,938			735,475			941,460			673,312
Long-term borrowings	2,059,525			2,017,232			1,812,508			1,358,496			1,721,151
Total borrowings	2,884,480			2,687,170			2,547,983			2,299,956			2,394,463
Accrued expenses and other liabilities	359,488			379,965			375,192			372,034			377,779
Total liabilities	11,024,656			10,913,900			10,588,655			10,272,392			10,653,202
Stockholders’ equity:
Common stock	1,206			925			925			925			925
Additional paid-in capital	517,020			516,990			517,203			517,657			517,345
Retained earnings	1,318,461			1,282,080			1,243,968			1,209,630			1,185,987
Accumulated other comprehensive income (loss)	(2,781		)	(11,666		)	11,784			4,332			(2,174		)
Treasury stock at cost and other	(883,004		)	(845,951		)	(836,891		)	(823,384		)	(789,945		)
	950,902			942,378			936,989			909,160			912,138
	$	11,975,558		$	11,856,278		$	11,525,644		$	11,181,552		$	11,565,340
Supplemental Information:
Residential real estate loans	$	1,076,619		$	1,123,062		$	1,193,435		$	1,256,847		$	1,344,921
Securities available for sale	1,545,768			1,546,694			1,519,374			1,505,379			1,696,800
Total residential real estate loans and securities available for sale	$	2,622,387		$	2,669,756		$	2,712,809		$	2,762,226		$	3,041,721

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