TCF Financial 8-K Results of Operations and Financial Condition

Exhibit 99.1

NEWS RELEASE

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

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

TCF Reports 2008 Earnings Per Share of $1.01

2008 YEAR END HIGHLIGHTS

·Diluted earnings per common share of $1.01

·Net income of $129 million

·Net interest margin of 3.91 percent

·Average loans and leases increased by $1.2 billion, or 10.2 percent

·Allowance for loan and lease losses increased to 1.29 percent

·Issued $361.2 million of senior perpetual preferred stock to the U.S. Treasury

·Capital ratios exceed stated well capitalized requirements

·Declared regular quarterly cash dividend of 25 cents per common share, payable February 27, 2009

Earnings Summary															Table 1
($ in thousands, except per-share data)							Percent Change
		4Q		3Q		4Q	4Q08 vs		4Q08 vs			YTD		YTD	Percent
		2008		2008		2007	3Q08		4Q07			2008		2007	Change
Net income	$	27,704	$	30,126	$	62,817	(8.0)	%	(55.9)	%	$	128,958	$	266,808	(51.7)	%
Net income available to common stockholders		25,164		30,126		62,817	(16.5)		(59.9)			126,418		266,808	(52.6)
Diluted earnings per common share		.20		.24		.50	(16.7)		(60.0)			1.01		2.12	(52.4)
Financial Ratios (1)
Return on average assets		.68 %		.73 %		1.60 %						.79 %		1.76 %
Return on average common equity		9.00		11.11		23.55						11.46		25.82
Net interest margin		3.84		3.97		3.83						3.91		3.94
Net charge-offs as a percentage of average loans and leases		1.02		.82		.46						.78		.30
(1) Annualized

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WAYZATA, MN, January 22, 2009 – TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported 2008 diluted earnings per common share of $1.01, compared with $2.12 for 2007. Net income was $129 million for 2008, compared with $266.8 million for 2007. TCF recorded $192 million in the provision for credit losses for 2008, as compared with $57 million for 2007. 2007 earnings also included pre-tax gains on sales of branches and real estate totaling $37.9 million, or 19 cents per share.

Diluted earnings per common share were 20 cents for the fourth quarter of 2008, compared with 24 cents in the third quarter of 2008 and 50 cents in the fourth quarter of 2007. Net income for the fourth quarter of 2008 was $27.7 million, compared with $30.1 million in the third quarter of 2008 and $62.8 million in the fourth quarter of 2007. TCF recorded $47.1 million in the provision for credit losses for the fourth quarter of 2008, as compared with $52.1 million in the third quarter of 2008 and $20.1 million in the fourth quarter of 2007. See discussion beginning on page 11 regarding the provision for credit losses.

Chairman’s Statement

“TCF did not engage in the activities that have created so many problems in the financial industry,” said William A. Cooper, Chairman and CEO. “TCF has not made subprime, broker purchased, Option ARM, teaser rate, out of market, low doc or other risky mortgage loans.  TCF kept on its balance sheet all the loans it originated.  TCF has no auto or credit card portfolios or asset backed commercial paper.  We have never owned Fannie Mae or Freddie Mac preferreds, trust preferred securities or bank owned life insurance (BOLI).  TCF does not have any derivative contracts. Higher charge-offs at TCF have been primarily due to the imprudent behavior of our competitors and an ill-advised monetary policy that created the unprecedented rise and fall of the housing markets. TCF remains profitable, solidly capitalized and ready to take advantage of prudent growth opportunities. TCF declared a $0.25 quarterly dividend payable to stockholders on February 27, 2009.  We expect to continue our dividend in future periods subject to maintaining solid profits and strong capital.

In accordance with our compensation programs, TCF Executive Management received no bonuses for 2008.  As Chairman and Chief Executive Officer, I receive neither a salary nor a bonus.”

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Total Revenue																				Table 2
								Percent Change
($ in thousands)	4Q		3Q			4Q		4Q08 vs				4Q08 vs			YTD		YTD			Percent
	2008		2008			2007		3Q08				4Q07			2008		2007			Change
Net interest income	$ 147,117		$ 152,165		$	139,571			(3.3	)	%	5.4	%	$	593,673		$   550,177			7.9	%
Fees and other revenue:
Fees and service charges	67,448		71,783			72,331			(6.0	)		(6.8	)		270,739		278,046			(2.6)
Card revenue	25,243		26,240			25,058			(3.8	)		.7			103,082		98,880			4.2
ATM revenue	7,688		8,720			8,306			(11.8	)		(7.4	)		32,645		35,620			(8.4)
Investments and insurance	-		3,193			2,736			(100.0	)		(100.0	)		9,405		10,318			(8.8)
Total banking fees	100,379		109,936			108,431			(8.7	)		(7.4	)		415,871		422,864			(1.7)
Leasing and equipment finance	16,298		13,006			14,841			25.3			9.8			55,488		59,151			(6.2)
Other	130		103			1,573			26.2			(91.7	)		2,702		8,270			(67.3)
Total fees and other revenue	116,807		123,045			124,845			(5.1	)		(6.4	)		474,061		490,285			(3.3)
Gains on securities	8,167		498			11,261			N.M.			(27.5	)		16,066		13,278			21.0
Visa share redemption	-		-			-			-			-			8,308		-			100.0
Gains on sales of branches and real estate	-		-			2,752			-			(100.0	)		-		37,894			(100.0)
Total non-interest income	124,974		123,543			138,858			1.2			(10.0	)		498,435		541,457			(7.9)
Total revenue	$ 272,091		$ 275,708		$	278,429			(1.3	)		(2.3	)	$	1,092,108		$ 1,091,634			-
Net interest margin(1)	3.84	%	3.97	%		3.83	%								3.91	%		3.94	%
Fees and other revenue as a % of:
Total revenue	42.93		44.63			44.84									43.41			44.91
Average assets (1)	2.85		3.00			3.18									2.90			3.24
N.M.=Not Meaningful
(1) Annualized

Net Interest Income

TCF’s net interest income in 2008 was $593.7 million, up $43.5 million, or 7.9 percent, from 2007. Net interest margin in 2008 was 3.91 percent, compared with 3.94 percent for 2007. The increase in net interest income from 2007 was primarily attributable to a $1.2 billion, or 8.5 percent, increase in average interest-earning assets, partially offset by a 3 basis point reduction in net interest margin.

Net interest income for the fourth quarter of 2008 increased $7.5 million, or 5.4 percent, compared with the fourth quarter of 2007. Net interest margin in the fourth quarter of 2008 was 3.84 percent, compared with 3.83 percent last year and 3.97 percent in the third quarter of 2008.

The decrease in net interest margin for 2008 from 2007 is primarily due to funding the growth in interest-earning assets with higher cost deposits and borrowings, partially offset by declines in rates on

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deposits exceeding declines in yields on interest-earning assets. The decrease in net interest margin in the fourth quarter of 2008 from the third quarter of 2008 was primarily due to increased rates paid on deposits due to competition and declines in yields on Power Assets, partially offset by lower rates paid on borrowings.

Non-interest Income

Total fees and other revenue was $474.1 million for 2008, down $16.2 million, or 3.3 percent, from 2007. Banking fees and service charges were $270.7 million for 2008, down $7.3 million, or 2.6 percent, from 2007 primarily due to lower activity in deposit service fees. Card revenues totaled $103.1 million for 2008, up $4.2 million, or 4.2 percent, from 2007 primarily due to increased transactions per active card. ATM revenue was $32.6 million, down $3 million, or 8.4 percent, from 2007 due to continued declines in fees charged to TCF customers for use of non-TCF ATM machines due to growth in TCF’s no fee checking products. Leasing and equipment finance revenues were $55.5 million for 2008, down $3.7 million, or 6.2 percent, from 2007, primarily due to lower operating lease revenue and sales-type lease revenue. Other revenues were $2.7 million for 2008, down $5.6 million from 2007, due in part to decreased gains on sales of education loans as TCF exited that business in 2008. Investments and insurance revenues were $9.4 million, down $913 thousand from 2007 as TCF stopped selling investment and insurance products in the branches during the fourth quarter of 2008. No gains on sales of branches and real estate were recorded in 2008, compared to gains of $37.9 million in 2007. Gains on securities in 2008 were $16.1 million primarily due to sales of $1.5 billion of mortgage-backed securities compared with gains of $13.3 million on sales of $1.2 billion of mortgage backed securities in 2007.

Total fees and other revenue in the fourth quarter of 2008 was $116.8 million, down $8 million, or 6.4 percent, from the fourth quarter of 2007 and down $6.2 million, or 5.1 percent, from the third quarter of 2008. Banking fees and service charges were $67.4 million, down $4.9 million, or 6.8 percent, from the fourth quarter of 2007 and $4.3 million, or 6 percent, from the third quarter of 2008 primarily due to lower activity in deposit service fees. Card revenues totaled $25.2 million for the fourth quarter of 2008, up $185

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thousand, or .7 percent, over the same period in 2007 and down $997 thousand, or 3.8 percent, from the third quarter of 2008. The decline in card revenue from the third quarter of 2008 was primarily due to lower average transaction amounts and volumes. ATM revenue was $7.7 million, down $618 thousand, or 7.4 percent, from the fourth quarter of 2007 and $1 million, or 11.8 percent from the third quarter of 2008. Investments and insurance revenues declined $2.7 million from the fourth quarter of 2007 and $3.2 million from the third quarter of 2008 as TCF stopped selling investment and insurance products in the branches during the fourth quarter of 2008.

Branches

Number of Branches					Table 3
At period end
	Total	New		Total	New
	Branches	Branches(1)		Branches	Branches(1)
Illinois	206	34	Traditional	197	76
Minnesota	111	20	Supermarket	236	29
Michigan	56	20	Campus	15	10
Colorado	36	29		448	115
Wisconsin	27	4
Arizona	7	7
Indiana	5	1
Total Branches	448	115
(1) New branches opened since January 1, 2003.

TCF opened 11 branches during 2008, including five traditional branches and six supermarket branches, and relocated three traditional branches. TCF also closed and consolidated two traditional branches and 14 supermarket branches into nearby branches to improve operating efficiencies. Since January 1, 2003, TCF has opened 115 new branches, representing 25.7 percent of TCF’s 448 total branches. During the fourth quarter of 2008, TCF opened one traditional branch and two supermarket branches, and relocated three traditional branches. In 2009, TCF plans to open one traditional branch and two supermarket branches, and remodel 28 supermarket branches.

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Power Assets®

Average Power Assets									Table 4
				Percentage Change
($ in thousands)	4Q 2008	3Q 2008	4Q 2007	4Q08vs 3Q08		4Q08vs 4Q07		YTD 2008	YTD 2007	YTD %
Loans and leases(1):
Consumer home equity
First mortgage lien	$  4,403,503	$  4,396,754	$  4,112,086	.2	%	7.1	%	$  4,347,025	$  3,953,442	10.0	%
Junior lien	2,423,873	2,434,392	2,299,461	(.4	)	5.4		2,411,502	2,190,988	10.1
Total consumer home equity	6,827,376	6,831,146	6,411,547	(.1	)	6.5		6,758,527	6,144,430	10.0
Consumer other	43,619	45,939	45,294	(5.1	)	(3.7	)	45,013	43,589	3.3
Total consumer	6,870,995	6,877,085	6,456,841	(.1	)	6.4		6,803,540	6,188,019	9.9
Commercial real estate	2,895,935	2,776,830	2,445,012	4.3		18.4		2,724,507	2,386,022	14.2
Commercial business	522,636	544,826	574,881	(4.1	)	(9.1	)	535,147	563,218	(5.0	)
Total commercial	3,418,571	3,321,656	3,019,893	2.9		13.2		3,259,654	2,949,240	10.5
Leasing and equipment finance	2,389,225	2,300,429	2,005,889	3.9		19.1		2,265,391	1,915,790	18.2
Inventory finance	158	-	-	N.M.		N.M.		40	-	N.M.
Total Power Assets	$12,678,949	$12,499,170	$11,482,623	1.4		10.4		$12,328,625	$11,053,049	11.5
(1) Excludes residential real estate loans, education loans held for sale and operating lease receivables.

TCF’s average Power Assets grew $1.3 billion, or 11.5 percent, in 2008 from 2007. TCF’s average consumer loan balances increased $615.5 million, or 9.9 percent, average leasing and equipment finance balances increased $349.6 million, or 18.2 percent, and average commercial loan balances increased $310.4 million, or 10.5 percent.

Average Power Assets increased $179.8 million, or 5.8 percent, annualized, from the third quarter of 2008. Management expects future growth to increase based on the issuance of senior perpetual preferred stock to the United States Department of the Treasury and trust preferred securities. TCF’s new Inventory Finance business generated $4.4 million in new loans during the fourth quarter of 2008.

The increase in average consumer home equity loans over 2007 was primarily due to a $360 million increase in fixed-rate consumer home equity loans, along with a $254.1 million increase in variable-rate consumer home equity loans. At December 31, 2008, 64.5 percent of the consumer home equity portfolio was secured by first liens.

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Power Liabilities®

Average Power Liabilities									Table 5
				Percentage Change
($ in thousands)	4Q 2008	3Q 2008	4Q 2007	4Q08vs 3Q08		4Q08vs 4Q07		YTD 2008	YTD 2007	Percent Change
Non-interest bearing deposits:
Retail	$1,345,832	$1,409,855	$1,348,202	(4.5	)%	(.2	)%	$1,320,951	$1,444,125	(8.5	)%
Small business	593,626	597,894	600,491	(.7	)	(1.1	)	583,611	594,979	(1.9	)
Commercial and custodial	234,045	253,900	201,161	(7.8	)	16.3		231,903	199,432	16.3
Total non-interest bearing	2,173,503	2,261,649	2,149,854	(3.9	)	1.1		2,136,465	2,238,536	(4.6	)
Interest-bearing deposits:
Premier checking	850,059	933,189	1,026,408	(8.9	)	(17.2	)	945,097	1,054,542	(10.4	)
Other checking	904,052	904,351	816,512	-		10.7		885,264	824,791	7.3
Subtotal	1,754,111	1,837,540	1,842,920	(4.5	)	(4.8	)	1,830,361	1,879,333	(2.6	)
Premier savings	1,397,516	1,403,323	1,353,638	(.4	)	3.2		1,448,123	1,184,756	22.2
Other savings	1,450,322	1,388,236	1,229,808	4.5		17.9		1,451,698	1,279,577	13.5
Subtotal	2,847,838	2,791,559	2,583,446	2.0		10.2		2,899,821	2,464,333	17.7
Money market	625,198	629,905	598,483	(.7	)	4.5		613,543	604,767	1.5
Subtotal	5,227,147	5,259,004	5,024,849	(.6	)	4.0		5,343,725	4,948,433	8.0
Certificates of deposit	2,448,815	2,469,327	2,307,411	(.8	)	6.1		2,472,357	2,461,055	.5
Total interest-bearing	7,675,962	7,728,331	7,332,260	(.7	)	4.7		7,816,082	7,409,488	5.5
Power Liabilities	$9,849,465	$9,989,980	$9,482,114	(1.4	)	3.9		$9,952,547	$9,648,024	3.2
Average rate on deposits	1.51%	1.34%	2.29%					1.58%	2.39%

Average Power Liabilities totaled $10 billion for 2008,  an increase of $304.5 million, or 3.2 percent, from 2007. The increase was primarily driven by increases in interest bearing savings balances, partially offset by decreases in checking balances.

Average Power Liabilities totaled $9.8 billion for the fourth quarter of 2008, down $140.5 million, or 1.4 percent, from the third quarter of 2008, primarily due to declines in non-interest bearing deposits and interest bearing checking, partially offset by increases in interest bearing savings. The average rate on deposits was 1.51 percent in the fourth quarter of 2008, up 17 basis points from the third quarter of 2008, as a result of decreases in the balances of non-interest bearing deposits and increases in the balances of higher cost deposits as well as rate increases made on certain deposit products in an attempt to increase deposit growth.

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Non-interest Expense

Non-interest Expense										Table 6
				Percent Change
(in thousands)	4Q 2008	3Q 2008	4Q 2007	4Q08 vs 3Q08		4Q08 vs 4Q07		2008		2007	Percent Change
Compensation and
employee benefits	$  83,323	$  84,895	$  86,555	(1.9	)%	(3.7	)%	$341,203		$346,468	(1.5	)%
Occupancy and equipment	32,503	31,832	30,818	2.1		5.5		127,953		120,824	5.9
Deposit account premiums	5,659	7,292	572	(22.4	)	N.M.		16,888		4,849	N.M.
Advertising and promotions	4,644	5,017	4,060	(7.4	)	14.4		19,150		16,830	13.8
Operating lease depreciation	4,269	4,215	4,521	1.3		(5.6	)	17,458		17,588	(0.7	)
Other	49,412	44,337	38,391	11.4		28.7		175,517		147,869	18.7
Subtotal	179,810	177,588	164,917	1.3		9.0		698,169		654,428	6.7
Visa indemnification	-	-	7,696	-		(100.0	)	(3,766	)	7,696	(148.9	)
Total non-interest expense	$179,810	$177,588	$172,613	1.3		4.2		$694,403		$662,124	4.9

Non-interest expense totaled $694.4 million for 2008, up $32.3 million, or 4.9 percent, from $662.1 million for 2007. Compensation and employee benefits were well controlled and decreased $5.3 million, or 1.5 percent, from 2007. The decrease in compensation and benefits in 2008 from 2007 was primarily due to intentional headcount reductions and decreased performance-based compensation, partially offset by expenses from branch expansion and the new inventory finance business. Occupancy and equipment expenses increased $7.1 million, or 5.9 percent, from 2007, primarily due to the costs associated with branch expansion and increased real estate taxes. Deposit account premium expenses increased $12 million from 2007 due to new marketing campaigns which resulted in increased checking account production. Other expense increased $27.6 million, or 18.7 percent, primarily due to a $13.2 million increase in foreclosed real estate expense due to an increased number of foreclosed properties and related property taxes and real estate disposition losses, an $8.6 million increase in severance and separation costs related to the investments and insurance business, certain lender reductions and various other headcount reductions throughout the company, and a $1.8 million increase in deposit insurance premiums.

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Non-interest expense totaled $179.8 million for the 2008 fourth quarter, up $7.2 million, or 4.2 percent, from the fourth quarter of 2007 and up $2.2 million, or 1.3 percent, from the third quarter of 2008. Compensation and employee benefits were well controlled and decreased $3.2 million, or 3.7 percent, from the fourth quarter of 2007 and decreased $1.6 million, or 1.9 percent, from the third quarter of 2008. Deposit account premium expenses were $5.7 million for the 2008 fourth quarter, up $5.1 million from the fourth quarter of 2007 due to new marketing campaigns which resulted in increased checking account production. Other operating expense increased $11 million from the fourth quarter of 2007 and increased $5.1 million from the third quarter of 2008 primarily due to higher foreclosed real estate expense, increased deposit insurance premiums, and a $3.7 million increase in severance and separation costs.

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Credit Quality

Credit Quality Summary																	Table 7
										Percent Change
(in thousands)	4Q 2008			3Q 2008			4Q 2007			4Q08 vs 3Q08		4Q08vs 4Q07		YTD 2008			YTD 2007			% Chg
Allowance for loan and lease losses
Balance at beginning of period	$	158,978		$	133,637		$	74,632		19.0	%	113.0	%	$	80,942		$	58,543		38.3	%
Charge-offs	(37,100		)	(29,976		)	(17,771		)	23.8		108.8		(114,800		)	(52,421		)	119.0
Recoveries	3,514			3,212			3,957			9.4		(11.2	)	14,255			17,828			(20.0	)
Net charge-offs	(33,586		)	(26,764		)	(13,814		)	25.5		143.1		(100,545		)	(34,593		)	190.7
Provision for credit losses	47,050			52,105			20,124			(9.7	)	133.8		192,045			56,992			N.M.
Balance at end of period	$	172,442		$	158,978		$	80,942		8.5		113.0		$	172,442		$	80,942		113.0
Allowance as a percentage of period end loans and leases	1.29		%	1.21		%	.66		%					1.29		%	.66		%
Ratio of allowance to net charge-offs(1)	1.3		X	1.5		X	1.5		X					1.7		X	2.3		X
Net Charge-offs as a Percentage of Average Loans and Leases(1)
Consumer home equity:
First mortgage lien	.87		%	.77		%	.30		%					.66		%	.24		%
Junior lien	1.76			1.56			.62							1.34			.50
Total home equity	1.19			1.05			.42							.90			.33
Total consumer	1.37			1.23			.56							1.04			.43
Commercial real estate	.41			.39			.33							.44			.10
Commercial business	2.01			.05			.30							1.05			.22
Leasing and equipment finance	.64			.42			.45							.50			.20
Inventory finance	-			-			-							-			-
Residential real estate	.52			.31			.05							.25			.04
Total	1.02			.82			.46							.78			.30
Other Credit Quality Data
Delinquencies(2)
30+days	$	149,284		$	142,125		$	82,577		5.0		80.8
90+days	$	37,619		$	34,808		$	15,384		8.1		144.5
Delinquencies as a percentage
of loan and lease portfolio(2):
30+days	1.13		%	1.10		%	.67		%
90+days	.28		%	.27		%	.12		%
Non-accrual loans and leases	$	172,518		$	145,890		$	59,854		18.3		188.2
Real estate owned	61,665			54,179			45,765			13.8		34.7
Total non-performing assets	$	234,183		$	200,069		$	105,619		17.1		121.7
Non-performing assets as a percentage of net loans and leases	1.78%			1.55%			.86%
N.M. = Not Meaningful
(1) Annualized
(2) Excludes non-accrual loans and leases

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At December 31, 2008, TCF’s allowance for loan and lease losses totaled $172.4 million, or 1.29 percent of loans and leases, compared with $80.9 million, or .66 percent, at December 31, 2007 and $159 million, or 1.21 percent, at September 30, 2008. The provision for credit losses for 2008 was $192 million, up from $57 million in 2007, primarily due to higher consumer home equity net charge-offs and the resulting portfolio reserve rate increases, higher net charge-offs and reserves for certain commercial loans, primarily in Michigan, and increased leasing and equipment finance net charge-offs.

Consumer home equity net charge-offs for 2008 were $61.1 million, an increase of $40.8 million from 2007. The higher net charge-offs were due to the depressed residential real estate market conditions, primarily in Minnesota and Michigan. Commercial net charge-offs for 2008 were $17.5 million, an increase of $13.8 million from 2007. Leasing and equipment finance net charge-offs for 2008 were $11.4 million, up $7.5 million from 2007 which included a one-time recovery of $2.1 million. During 2008, $1.1 billion of new home equity loans were originated. Of these loans, the net charge-offs totaled $273 thousand, or .03 percent.

The provision for credit losses was $47.1 million in the fourth quarter of 2008, up from $20.1 million in the fourth quarter of 2007, primarily due to higher consumer home equity net charge-offs and the resulting portfolio reserve rate increases. The provision for credit losses was down $5.1 million from the third quarter of 2008 mostly due to lower provisions for certain commercial loans and less portfolio reserve rate increases for consumer home equity loans. Net loan and lease charge-offs during the fourth quarter of 2008 were $33.6 million, or 1.02 percent of average loans and leases, up from $13.8 million, or ..46 percent, in the same period of 2007, and up from $26.8 million, or .82 percent, in the third quarter of 2008.

At December 31, 2008, TCF’s over-30-day delinquency rate was 1.13 percent, up from 1.10 percent at September 30, 2008. TCF’s over-90-day delinquency rate was .28 percent, up slightly from .27 percent at September 30, 2008. Total non-performing assets were $234.2 million, or 1.40 percent of total assets, at December 31, 2008, up from $200.1 million, or 1.21 percent of total assets, at September 30, 2008. The increase in non-performing assets from September 30, 2008 was primarily due to a $16.7 million increase in

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consumer home equity non-accrual loans, a $6.3 million increase in commercial non-accrual loans, and a $7.5 million increase in real estate owned.

Income Taxes

TCF’s income tax expense was $76.7 million for 2008, or 37.3 percent of pre-tax income, compared with $105.7 million, or 28.4 percent, for 2007. Income tax expense for 2008 included a $2.2 million increase in income tax expense and a $2.8 million increase in deferred income taxes related to changes in state tax laws, primarily in Minnesota, and a $1.5 million increase in income tax expense for distributions from the company’s deferred compensation plans. Income tax expense for 2007 includes an $8.5 million reduction related to a favorable settlement with the IRS of a tax issue from a prior year and $9.9 million of other reductions primarily resulting from changes in uncertain tax positions and state tax laws. Excluding these items, the effective income tax rate was 34.2 percent for 2008 and 33.9 percent for 2007.

TCF’s income tax expense was $17.5 million for the fourth quarter of 2008, or 38.8 percent of pre-tax income, compared with $22.9 million, or 26.7 percent, for the comparable 2007 period and $15.9 million, or 34.5 percent, for the third quarter of 2008. The higher effective income tax rate for the fourth quarter of 2008 as compared with the third quarter of 2008, was primarily due to a $1.5 million charge recorded to income tax expense for distributions from the company’s deferred compensation plans.  The fourth quarter of 2007 also included $5.4 million of reductions in income tax expense for uncertain tax positions. Excluding these items, the effective income tax rates for the fourth quarters of 2008 and 2007 were 35.5 percent and 33 percent, respectively.

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13

Capital

Capital Information							Table 8
At period end
($ in thousands, except per-share data)	4Q 2008				4Q 2007
Stockholders’ equity	$1,493,776				$1,099,012
Stockholders’ equity to total assets	8.92	%			6.88	%
Book value per common share	$         8.99				$         8.68
Risk-based capital
Tier 1	$1,461,973		11.79	%	$   964,467		8.28	%
Total	1,817,225		14.65		1,245,808		10.70
Total stated “well-capitalized” requirement	1,240,147		10.00		1,164,829		10.00
Excess over stated “well-capitalized” requirement	577,078		4.65		80,979		.70

TCF’s total risk-based capital of $1.8 billion or 14.65 percent of risk-weighted assets is $577.1 million in excess of the “well-capitalized” requirement. During the fourth quarter of 2008, TCF received proceeds of $361.2 million from the issuance of 361,172 shares of senior perpetual preferred stock to the United States Department of the Treasury. In connection with the issuance of preferred stock, TCF also issued the U.S. Treasury a warrant for 3.2 million shares of TCF stock at an exercise price of $16.93. TCF will begin making the required 5 percent quarterly dividend payments on the preferred stock in February 2009.  “TCF continues to be solidly capitalized and maintains adequate liquidity to facilitate lending through our strong retail deposit franchise. With the increased capital as a result of participating in this program, we are expanding our lending activities and expect strong loan and lease production in 2009,” said William A. Cooper. Since September 30, 2008, TCF’s average loans and leases have increased $165.2 million. TCF has originated $490.4 million of loans and leases since receiving the proceeds from the United States Department of the Treasury on November 14, 2008 and has completed 762 loan modifications and extensions on $117.1 million of consumer home equity loans to help these customers avoid home foreclosures.

On January 20, 2009, the Board of Directors of TCF declared its regular quarterly cash dividend of 25 cents per common share, payable on February 27, 2009 to stockholders of record at the close of business on January 30, 2009.

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14

Website Information

A live webcast of TCF’s conference call to discuss 2008 earnings will be hosted at TCF’s website, www.tcfbank.com, on January 22, 2009 at 10:00 a.m., CT. Additionally, the webcast is available for replay at TCF’s website after the conference call. The website also includes free access to company news releases, TCF’s annual report, quarterly reports, investor presentations and SEC filings.

TCF is a Wayzata, Minnesota-based national financial holding company with $16.7 billion in total assets. TCF has 448 banking offices in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana and Arizona, providing retail and commercial banking services. TCF also conducts commercial leasing and equipment finance business in all 50 states and commercial inventory finance business in the U.S. and Canada. For more information about TCF, please visit www.tcfbank.com.

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15

Forward-looking Information

This earnings release and other reports issued by the Company, including reports filed with the SEC, may contain “forward-looking” statements that deal with future results, plans or performance. In addition, TCF’s management may make such statements orally to the media, or to securities analysts, investors or others. Forward-looking statements deal with matters that do not relate strictly to historical facts. TCF’s future results may differ materially from historical performance and forward-looking statements about TCF’s expected financial results or other plans and are subject to a number of risks and uncertainties. These include, but are not limited to, continued or deepening deterioration in banking industry conditions; limitations on TCF’s ability to pay dividends at current levels or to increase dividends in the future because of financial performance deterioration, regulatory restrictions, or limitations imposed as a result of TCF’s participation in the U.S. Treasury Department’s Capital Purchase Program (“CPP”); increased deposit insurance premiums or other costs related to deteriorating conditions in the banking industry and the economic impact on banks of the Emergency Economic Stabilization Act (“EESA”) or other related legislative and regulatory developments; the imposition of requirements with an adverse financial impact relating to TCF’s lending, loan collection and other business activities as a result of the EESA, TCF’s participation in the CPP, or other legislative or regulatory developments; possible legislative changes and adverse economic, business and competitive developments such as shrinking interest margins, deposit outflows, an inability to increase the number of deposit accounts and the possibility that deposit account losses (fraudulent checks, etc.) may increase; impact of legislative, regulatory or other changes affecting customer account charges and fee income; 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 standards or interpretations of existing standards; monetary, fiscal or tax policies of the federal or state governments; including adoption of state legislation that would increase state taxes; adverse findings in tax audits or regulatory examinations and resulting enforcement actions; changes in credit and other risks posed by TCF’s loan, lease, investment, and securities available for sale portfolios, including continuing declines in commercial or residential real estate values or changes in allowance for loan and lease losses methodology dictated by new market conditions or regulatory requirements; lack of or inadequate insurance coverage for claims against TCF; technological, computer related or operational difficulties or loss or theft of information; adverse changes in securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund its operations; results of litigation, including potential class action litigation concerning TCF’s lending or deposit activities or employment practices and possible increases in indemnification obligations for certain litigation against Visa U.S.A. (“covered litigation”) and potential reductions in card revenues resulting from other litigation against Visa; heightened regulatory practices, requirements or expectations, including but not limited to requirements related to the Bank Secrecy Act and anti-money laundering compliance activity; or other significant uncertainties. Investors should consult TCF’s Annual Report on Form 10-K, and Forms 10-Q and 8-K for additional important information about the Company.

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16

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

	Three Months Ended
	December 31,				Change
	2008		2007		$		%
Interest income:
Loans and leases	$	211,322	$	215,082	$	(3,760)	(1.7)
Securities available for sale	25,232		29,372		(4,140)		(14.1)
Education loans held for sale	24		3,153		(3,129)		(99.2)
Investments and other	1,224		1,595		(371)		(23.3)
Total interest income	237,802		249,202		(11,400)		(4.6)
Interest expense:
Deposits	37,362		54,788		(17,426)		(31.8)
Borrowings	53,323		54,843		(1,520)		(2.8)
Total interest expense	90,685		109,631		(18,946)		(17.3)
Net interest income	147,117		139,571		7,546		5.4
Provision for credit losses	47,050		20,124		26,926		133.8
Net interest income after provision for
credit losses	100,067		119,447		(19,380)		(16.2)
Non-interest income:
Fees and service charges	67,448		72,331		(4,883)		(6.8)
Card revenue	25,243		25,058		185		.7
ATM revenue	7,688		8,306		(618)		(7.4)
Investments and insurance revenue	-		2,736		(2,736)		(100.0)
Subtotal	100,379		108,431		(8,052)		(7.4)
Leasing and equipment finance	16,298		14,841		1,457		9.8
Other	130		1,573		(1,443)		(91.7)
Fees and other revenue	116,807		124,845		(8,038)		(6.4)
Gains on securities	8,167		11,261		(3,094)		(27.5)
Gains on sales of branches and real estate	-		2,752		(2,752)		(100.0)
Total non-interest income	124,974		138,858		(13,884)		(10.0)
Non-interest expense:
Compensation and employee benefits	83,323		86,555		(3,232)		(3.7)
Occupancy and equipment	32,503		30,818		1,685		5.5
Deposit account premiums	5,659		572		5,087		N.M.
Advertising and promotions	4,644		4,060		584		14.4
Operating lease depreciation	4,269		4,521		(252)		(5.6)
Other	49,412		46,087		3,325		7.2
Total non-interest expense	179,810		172,613		7,197		4.2
Income before income tax expense	45,231		85,692		(40,461)		(47.2)
Income tax expense	17,527		22,875		(5,348)		(23.4)
Net income	27,704		62,817		(35,113)		(55.9)
Preferred stock dividends	2,540		-		2,540		N.M.
Net income available to common stockholders	$	25,164	$	62,817	$	(37,653)	(59.9)
Net income per common share:
Basic	$	.20	$	.51	$	(.31)	(60.8)
Diluted	.20		.50		(.30)		(60.0)
Dividends declared per common share	$	.2500	$	.2425	$	.0075	3.1
Average common and common equivalent
shares outstanding (in thousands):
Basic	125,345		124,058		1,287		1.0
Diluted	125,733		124,927		806		.6

N.M.  Not meaningful

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17

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

	Year Ended
	December 31,				Change
	2008		2007		$			%
Interest income:
Loans and leases	$	842,157	$	836,953	$	5,204		.6
Securities available for sale	110,946		109,581		1,365			1.2
Education loans held for sale	5,355		13,252		(7,897		)	(59.6	)
Investments and other	5,937		8,237		(2,300		)	(27.9	)
Total interest income	964,395		968,023		(3,628		)	(.4	)
Interest expense:
Deposits	156,774		230,625		(73,851		)	(32.0	)
Borrowings	213,948		187,221		26,727			14.3
Total interest expense	370,722		417,846		(47,124		)	(11.3	)
Net interest income	593,673		550,177		43,496			7.9
Provision for credit losses	192,045		56,992		135,053			N.M.
Net interest income after provision forcredit losses	401,628		493,185		(91,557		)	(18.6	)
Non-interest income:
Fees and service charges	270,739		278,046		(7,307		)	(2.6	)
Card revenue	103,082		98,880		4,202			4.2
ATM revenue	32,645		35,620		(2,975		)	(8.4	)
Investments and insurance revenue	9,405		10,318		(913		)	(8.8	)
Subtotal	415,871		422,864		(6,993		)	(1.7	)
Leasing and equipment finance	55,488		59,151		(3,663		)	(6.2	)
Other	2,702		8,270		(5,568		)	(67.3	)
Fees and other revenue	474,061		490,285		(16,224		)	(3.3	)
Gains on securities	16,066		13,278		2,788			N.M.
Visa share redemption	8,308		-		8,308			N.M.
Gains on sales of branches and real estate	-		37,894		(37,894		)	(100.0	)
Total non-interest income	498,435		541,457		(43,022		)	(7.9	)
Non-interest expense:
Compensation and employee benefits	341,203		346,468		(5,265		)	(1.5	)
Occupancy and equipment	127,953		120,824		7,129			5.9
Deposit account premiums	16,888		4,849		12,039			N.M.
Advertising and promotions	19,150		16,830		2,320			13.8
Operating lease depreciation	17,458		17,588		(130		)	(.7	)
Other	171,751		155,565		16,186			10.4
Total non-interest expense	694,403		662,124		32,279			4.9
Income before income tax expense	205,660		372,518		(166,858		)	(44.8	)
Income tax expense	76,702		105,710		(29,008		)	(27.4	)
Net income	128,958		266,808		(137,850		)	(51.7	)
Preferred stock dividends	2,540		-		2,540			N.M.
Net income available to common stockholders	$	126,418	$	266,808	$	(140,390	)	(52.6	)
Net income per common share:
Basic	$	1.01	$	2.13	$	(1.12	)	(52.6	)
Diluted	1.01		2.12		(1.11		)	(52.4	)
Dividends declared per common share	$	1.00	$	.97	$	.03		3.1
Average common and common equivalentshares outstanding (in thousands):
Basic	124,943		125,398		(455		)	(.4	)
Diluted	125,309		125,831		(522		)	(.4	)

N.M. Not meaningful.

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18

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

	At December 31,			At December 31,			Change
	2008			2007			$		%
ASSETS
Cash and due from banks	$	342,380		$	358,188		(15,808	)	(4.4	)
Investments	155,725			148,253			7,472		5.0
Securities available for sale	1,966,104			1,963,681			2,423		.1
Education loans held for sale	757			156,135			(155,378	)	(99.5	)
Loans and leases:
Consumer home equity and other	6,908,140			6,590,631			317,509		4.8
Commercial real estate	2,984,156			2,557,330			426,826		16.7
Commercial business	506,887			558,325			(51,438	)	(9.2	)
Leasing and equipment finance	2,486,082			2,104,343			381,739		18.1
Inventory finance	4,425			-			4,425		-
Subtotal	12,889,690			11,810,629			1,079,061		9.1
Residential real estate	455,443			527,607			(72,164	)	(13.7	)
Total loans and leases	13,345,133			12,338,236			1,006,897		8.2
Allowance for loan and lease losses	(172,442		)	(80,942		)	(91,500	)	(113.0	)
Net loans and leases	13,172,691			12,257,294			915,397		7.5
Premises and equipment, net	447,826			438,452			9,374		2.1
Goodwill	152,599			152,599			-		-
Other assets	502,275			502,452			(177	)	-
Total assets	$	16,740,357		$	15,977,054		763,303		4.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Checking	$	3,969,768		$	4,108,527		(138,759	)	(3.4	)
Savings	3,057,623			2,636,820			420,803		16.0
Money market	619,678			576,667			43,011		7.5
Subtotal	7,647,069			7,322,014			325,055		4.4
Certificates of deposit	2,596,283			2,254,535			341,748		15.2
Total deposits	10,243,352			9,576,549			666,803		7.0
Short-term borrowings	226,861			556,070			(329,209	)	(59.2	)
Long-term borrowings	4,433,913			4,417,378			16,535		.4
Total borrowings	4,660,774			4,973,448			(312,674	)	(6.3	)
Accrued expenses and other liabilities	342,455			328,045			14,410		4.4
Total liabilities	15,246,581			14,878,042			368,539		2.5
Stockholders’ equity:
Preferred stock, par value $.01 per share,30,000,000 authorized; 361,172 issued	348,437			-			348,437		N.M.
Common stock, par value $.01 per share,280,000,000 shares authorized; 130,839,378and 131,468,699 shares issued	1,308			1,315			(7	)	(.5	)
Additional paid-in capital	330,474			354,563			(24,089	)	(6.8	)
Retained earnings, subject to certain restrictions	927,893			926,875			1,018		.1
Accumulated other comprehensive loss	(3,692		)	(18,055		)	14,363		79.6
Treasury stock at cost, 3,413,855and 4,866,480 shares, and other	(110,644		)	(165,686		)	55,042		33.2
Total stockholders’ equity	1,493,776			1,099,012			394,764		35.9
Total liabilities and stockholders’ equity	$	16,740,357		$	15,977,054		763,303		4.8

N.M. Not meaningful.

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19

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

Allowance for loan and lease losses

													Allowance as % of Portfolio
	At December 31, 2008				At September 30, 2008				At December 31, 2007				Change from
	Allowance				Allowance				Allowance				Sep. 30,		Dec. 31,
	Balance		% of Portfolio		Balance		% of Portfolio		Balance		% of Portfolio		2008		2007
Consumer home equity	$	96,479	1.41	%	$	83,326	1.22	%	$	30,951	.47	%	19	bps	94	bps
Consumer other	2,664		4.31		2,938		4.18		2,059		3.05		13		126
Total consumer home equity and other	99,143		1.44		86,264		1.25		33,010		.50		19		94
Commercial real estate	39,386		1.32		39,636		1.39		25,891		1.01		(7	)	31
Commercial business	11,865		2.34		12,575		2.29		7,077		1.27		5		107
Leasing and equipment finance	20,058		.81		19,136		.82		14,319		.68		(1	)	13
Inventory finance	33		.75		-		-		-		-		75		75
Residential real estate	1,957		.43		1,367		.29		645		.12		14		31
Total	$	172,442	1.29		$	158,978	1.21		$	80,942	.66		8		63

Net Charge-Offs

	Quarter Ended										Change from
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Dec. 31,
	2008		2008		2008		2008		2007		2008		2007
Consumer home equity
First mortgage lien	$	9,600	$	8,476	$	6,692	$	4,040	$	3,130	$	1,124	$	6,470
Junior lien	10,664		9,469		7,205		4,973		3,585		1,195		7,079
Total consumer home equity	20,264		17,945		13,897		9,013		6,715		2,319		13,549
Consumer other	3,303		3,282		1,525		1,195		2,379		21		924
Total consumer home equity and other	23,567		21,227		15,422		10,208		9,094		2,340		14,473
Commercial real estate	2,958		2,694		5,736		466		1,987		264		971
Commercial business	2,631		65		2,308		597		430		2,566		2,201
Leasing and equipment finance	3,832		2,413		3,071		2,105		2,234		1,419		1,598
Inventory finance	-		-		-		-		-		-		-
Residential real estate	598		365		111		171		69		233		529
Total	$	33,586	$	26,764	$	26,648	$	13,547	$	13,814	$	6,822	$	19,772

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

	Quarter Ended (1)										Change from
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Dec. 31,
	2008		2008		2008		2008		2007		2008		2007
Consumer home equity
First mortgage lien	.87	%	.77	%	.61	%	.38	%	.30	%	10	bps	57	bps
Junior lien	1.76		1.56		1.19		.84		.62		20		114
Total consumer home equity	1.19		1.05		.82		.55		.42		14		77
Total consumer	1.37		1.23		.90		.62		.56		14		81
Commercial real estate	.41		.39		.86		.07		.33		2		8
Commercial business	2.01		.05		1.74		.44		.30		196		171
Leasing and equipment finance	.64		.42		.55		.39		.45		22		19
Inventory finance	-		-		-		-		-		-		-
Residential real estate	.52		.31		.09		.13		.05		21		47
Total	1.02		.82		.84		.44		.46		20		56

Non-performing assets

	At			At			At			At			At			Change from
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,				Dec. 31,
	2008			2008			2008			2008			2007			2008				2007
Non-accrual loans and leases:
Consumer home equity
First mortgage lien	$	65,908		$	48,603		$	39,780		$	28,412		$	20,776		$	17,305			$	45,132
Junior lien	11,793			12,433			9,654			7,434			5,391			(640		)		6,402
Total consumer home equity	77,701			61,036			49,434			35,846			26,167			16,665				51,534
Consumer other	65			78			287			13			6			(13		)		59
Total consumer home equity and other	77,766			61,114			49,721			35,859			26,173			16,652				51,593
Commercial real estate	54,615			46,011			38,404			34,300			19,999			8,604				34,616
Commercial business	14,088			16,356			1,306			2,350			2,658			(2,268)				11,430
Leasing and equipment finance	20,879			18,379			12,820			10,726			8,050			2,500				12,829
Inventory finance	-			-			-			-			-			-				-
Residential real estate	5,170			4,030			2,996			2,991			2,974			1,140				2,196
Total non-accrual loans and leases	172,518			145,890			105,247			86,226			59,854			26,628				112,664
Other real estate owned:
Residential real estate	38,632			34,101			35,269			30,415			28,752			4,531				9,880
Commercial real estate	23,033			20,078			19,843			17,400			17,013			2,955				6,020
Total other real estate owned	61,665			54,179			55,112			47,815			45,765			7,486				15,900
Total non-performing assets	$	234,183		$	200,069		$	160,359		$	134,041		$	105,619		$	34,114			$	128,564
Non-performing assets as a percentage of net loans and leases	1.78		%	1.55		%	1.25		%	1.07		%	.86		%	23			bps	92		bps

(1)  Annualized

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20

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

Delinquency data - principal balances (1)

	At		At		At		At		At		Change from
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,			Dec. 31,
	2008		2008		2008		2008		2007		2008			2007
30 days or more:
Consumer home equity
First mortgage lien	$	81,654	$	70,393	$	51,081	$	50,097	$	31,784	$	11,261		$	49,870
Junior lien	24,086		20,074		14,818		15,378		12,289		4,012			11,797
Total consumer home equity	105,740		90,467		65,899		65,475		44,073		15,273			61,667
Consumer other	666		515		437		342		377		151			289
Total consumer home equity and other	106,406		90,982		66,336		65,817		44,450		15,424			61,956
Commercial real estate	3,199		15,732		17,877		7,888		11,382		(12,533		)	(8,183		)
Commercial business	874		531		2,167		527		1,071		343			(197		)
Leasing and equipment finance	28,901		24,982		21,982		19,956		15,691		3,919			13,210
Inventory finance	-		-		-		-		-		-			-
Residential real estate	9,904		9,898		12,461		10,149		9,983		6			(79		)
Total 30 days or more	$	149,284	$	142,125	$	120,823	$	104,337	$	82,577	$	7,159		$	66,707
Total 90 days or more and still accruing	$	37,619	$	34,808	$	28,180	$	23,538	$	15,384	$	2,811		$	22,235

Delinquency data - % of portfolio (1)

		At		At		At		At		At		Change from
		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,			Dec. 31,
		2008		2008		2008		2008		2007		2008			2007
30 days or more:
Consumer home equity
First mortgage lien		1.87	%	1.62	%	1.17	%	1.17	%	.76	%	25		bps	111	bps
Junior lien		1.00		.83		.61		.64		.53		17			47
Total consumer home equity		1.56		1.34		.97		.98		.68		22			88
Consumer other		1.08		.73		.64		.55		.56		35			52
Total consumer home equity and other		1.56		1.33		.97		.98		.68		23			88
Commercial real estate	��	.11		.56		.66		.31		.45		(45	)		(34)
Commercial business		.18		.10		.39		.10		.19		8			(1)
Leasing and equipment finance		1.17		1.08		.98		.92		.75		9			42
Inventory finance		-		-		-		-		-		-			-
Residential real estate		2.20		2.12		2.58		2.02		1.90		8			30
Total 30 days or more		1.13		1.10		.94		.83		.67		3			46
Total 90 days or more and still accruing		.28		.27		.22		.19		.12		1			16

Potential Problem Loans and Leases (2)

	At		At		At		At		At		Change from
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Dec. 31,
	2008		2008		2008		2008		2007		2008		2007
Consumer home equity (3)	$	27,423	$	23,844	$	24,722	$	15,120	$	4,861	$	3,579	$	22,562
Commercial real estate	137,332		100,028		100,288		36,172		31,511		37,304		105,821
Commercial business	27,127		30,619		49,809		34,787		8,695		(3,492)		18,432
Leasing and equipment finance	20,994		17,950		16,967		16,010		15,015		3,044		5,979
Inventory finance	-		-		-		-		-		-		-
	$	212,876	$	172,441	$	191,786	$	102,089	$	60,082	$	40,435	$	152,794

(1)	Excludes non-accrual loans and leases.
(2)	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.
(3)	Consists of certain loans with restructured terms.

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21

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

	Three Months Ended December 31,
			2008						2007
	Average				Yields and		Average				Yields and
	Balance		Interest		Rates (1)		Balance		Interest		Rates (1)
ASSETS
Investments and other	$	166,580	$	1,224	2.93	%	$	147,058	$	1,595	4.31	%
Securities available for sale	1,966,561		25,232		5.13		2,187,068		29,372		5.37
Education loans held for sale	1,876		24		5.09		153,146		3,153		8.17
Loans and leases:
Consumer home equity:
Fixed-rate	5,033,725		84,904		6.71		4,889,304		85,978		6.98
Variable-rate	1,793,651		27,044		6.00		1,522,243		30,608		7.98
Consumer - other	43,619		940		8.57		45,294		1,114		9.76
Total consumer home equity and other	6,870,995		112,888		6.54		6,456,841		117,700		7.23
Commercial real estate:
Fixed- and adjustable-rate	2,287,226		35,304		6.14		1,839,817		29,842		6.44
Variable-rate	608,709		7,456		4.87		605,195		10,814		7.09
Total commercial real estate	2,895,935		42,760		5.87		2,445,012		40,656		6.60
Commercial business:
Fixed- and adjustable-rate	171,687		2,437		5.65		179,525		2,854		6.31
Variable-rate	350,949		3,914		4.44		395,356		6,885		6.91
Total commercial business	522,636		6,351		4.83		574,881		9,739		6.72
Leasing and equipment finance	2,389,225		42,701		7.15		2,005,889		39,217		7.82
Inventory finance	158		4		10.13		-		-		N.A.
Subtotal	12,678,949		204,704		6.43		11,482,623		207,312		7.17
Residential real estate	462,807		6,618		5.71		537,449		7,770		5.77
Total loans and leases	13,141,756		211,322		6.40		12,020,072		215,082		7.11
Total interest-earning assets	15,276,773		237,802		6.20		14,507,344		249,202		6.83
Other assets	1,130,462						1,198,428
Total assets	$	16,407,235					$	15,705,772
LIABILITIES AND STOCKHOLDERS’ EQUITY
Non-interest bearing deposits:
Retail	$	1,345,832					$	1,348,202
Small business	593,626						600,491
Commercial and custodial	234,045						201,161
Total non-interest bearing deposits	2,173,503						2,149,854
Interest-bearing deposits:
Premier checking	850,059		2,219		1.04		1,026,408		6,454		2.49
Other checking	904,052		716		.32		816,512		829		.40
Subtotal	1,754,111		2,935		.67		1,842,920		7,283		1.57
Premier savings	1,397,516		9,747		2.77		1,353,638		13,819		4.05
Other savings	1,450,322		3,255		.89		1,229,808		3,532		1.14
Subtotal	2,847,838		13,002		1.82		2,583,446		17,351		2.66
Money market	625,198		2,625		1.67		598,483		4,138		2.74
Subtotal	5,227,147		18,562		1.41		5,024,849		28,772		2.27
Certificates of deposit	2,448,815		18,800		3.05		2,307,411		26,016		4.47
Total interest-bearing deposits	7,675,962		37,362		1.94		7,332,260		54,788		2.96
Total deposits	9,849,465		37,362		1.51		9,482,114		54,788		2.29
Borrowings:
Short-term borrowings	454,202		1,102		.97		450,027		5,184		4.57
Long-term borrowings	4,435,730		52,221		4.69		4,340,891		49,659		4.54
Total borrowings	4,889,932		53,323		4.34		4,790,918		54,843		4.54
Total deposits and borrowings	14,739,397		90,685		2.45		14,273,032		109,631		3.05
Other liabilities	366,063						365,888
Total liabilities	15,105,460						14,638,920
Stockholders’ equity	1,301,775						1,066,852
Total liabilities and
stockholders’ equity	$	16,407,235					$	15,705,772
Net interest income and margin			$	147,117	3.84	%			$	139,571	3.83	%

(1)  Annualized

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22

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

	Year Ended December 31,
	2008						2007
	Average				Yields and		Average				Yields and
	Balance		Interest		Rates (1)		Balance		Interest		Rates (1)
ASSETS
Investments and other	$	155,839	$	5,937	3.81	%	$	178,012	$	8,237	4.63	%
Securities available for sale	2,112,974		110,946		5.25		2,024,563		109,581		5.41
Education loans held for sale	87,877		5,355		6.09		154,516		13,252		8.58
Loans and leases:
Consumer home equity:
Fixed-rate	5,043,699		343,739		6.82		4,683,745		326,516		6.97
Variable-rate	1,714,828		109,115		6.36		1,460,685		124,992		8.56
Consumer - other	45,013		3,877		8.61		43,589		4,307		9.88
Total consumer home equity and other	6,803,540		456,731		6.71		6,188,019		455,815		7.37
Commercial real estate:
Fixed- and adjustable-rate	2,127,436		132,014		6.21		1,777,813		114,140		6.42
Variable-rate	597,071		31,110		5.21		608,209		46,363		7.62
Total commercial real estate	2,724,507		163,124		5.99		2,386,022		160,503		6.73
Commercial business:
Fixed- and adjustable-rate	168,554		9,988		5.93		169,776		10,853		6.39
Variable-rate	366,593		18,143		4.95		393,442		28,947		7.36
Total commercial business	535,147		28,131		5.26		563,218		39,800		7.07
Leasing and equipment finance	2,265,391		165,838		7.32		1,915,790		147,507		7.70
Inventory finance	40		4		10.00		-		-		N.A.
Subtotal	12,328,625		813,828		6.60		11,053,049		803,625		7.27
Residential real estate	488,499		28,329		5.80		574,554		33,328		5.80
Total loans and leases	12,817,124		842,157		6.57		11,627,603		836,953		7.20
Total interest-earning assets	15,173,814		964,395		6.36		13,984,694		968,023		6.92
Other assets	1,158,536						1,161,106
Total assets	$	16,332,350					$	15,145,800
LIABILITIES AND STOCKHOLDERS’ EQUITY
Non-interest bearing deposits:
Retail	$	1,320,951					$	1,444,125
Small business	583,611						594,979
Commercial and custodial	231,903						199,432
Total non-interest bearing deposits	2,136,465						2,238,536
Interest-bearing deposits:
Premier checking	945,097		10,533		1.11		1,054,542		30,650		2.91
Other checking	885,264		2,400		.27		824,791		2,993		.36
Subtotal	1,830,361		12,933		.71		1,879,333		33,643		1.79
Premier savings	1,448,123		37,427		2.58		1,184,756		49,994		4.22
Other savings	1,451,698		11,174		.95		1,279,577		15,062		1.18
Subtotal	2,899,821		48,601		1.68		2,464,333		65,056		2.64
Money market	613,543		10,099		1.65		604,767		17,396		2.88
Subtotal	5,343,725		71,633		1.34		4,948,433		116,095		2.35
Certificates of deposit	2,472,357		85,141		3.44		2,461,055		114,530		4.65
Total interest-bearing deposits	7,816,082		156,774		2.01		7,409,488		230,625		3.11
Total deposits	9,952,547		156,774		1.58		9,648,024		230,625		2.39
Borrowings:
Short-term borrowings	411,763		8,990		2.18		230,293		11,369		4.94
Long-term borrowings	4,459,703		204,958		4.60		3,890,054		175,852		4.52
Total borrowings	4,871,466		213,948		4.39		4,120,347		187,221		4.54
Total deposits and borrowings	14,824,013		370,722		2.50		13,768,371		417,846		3.03
Other liabilities	359,223						343,978
Total liabilities	15,183,236						14,112,349
Stockholders’ equity	1,149,114						1,033,451
Total liabilities and stockholders’ equity	$	16,332,350					$	15,145,800
Net Interest income and margin			$	593,673	3.91	%			$	550,177	3.94	%

(1) Annualized

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23

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME AND FINANCIAL RATIOS

(Dollars in thousands, except per-share data)

(Unaudited)

	At or For the Three Months Ended
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
	2008			2008			2008			2008			2007
Interest income:
Loans and leases	$	211,322		$	210,651		$	208,407		$	211,777		$	215,082
Securities available for sale	25,232			28,577			28,858			28,279			29,372
Education loans held for sale	24			123			1,756			3,452			3,153
Investments and other	1,224			1,644			1,427			1,642			1,595
Total interest income	237,802			240,995			240,448			245,150			249,202
Interest expense:
Deposits	37,362			33,730			36,954			48,728			54,788
Borrowings	53,323			55,100			51,932			53,593			54,843
Total interest expense	90,685			88,830			88,886			102,321			109,631
Net interest income	147,117			152,165			151,562			142,829			139,571
Provision for credit losses	47,050			52,105			62,895			29,995			20,124
Net interest income after provision for credit losses	100,067			100,060			88,667			112,834			119,447
Non-interest income:
Fees and service charges	67,448			71,783			67,961			63,547			72,331
Card revenue	25,243			26,240			26,828			24,771			25,058
ATM revenue	7,688			8,720			8,267			7,970			8,306
Investments and insurance revenue	-			3,193			2,977			3,235			2,736
Subtotal	100,379			109,936			106,033			99,523			108,431
Leasing and equipment finance	16,298			13,006			14,050			12,134			14,841
Other	130			103			1,421			1,048			1,573
Fees and other revenue	116,807			123,045			121,504			112,705			124,845
Gains on securities	8,167			498			1,115			6,286			11,261
Visa share redemption	-			-			-			8,308			-
Gains on sales of branches and real estate	-			-			-			-			2,752
Total non-interest income	124,974			123,543			122,619			127,299			138,858
Non-interest expense:
Compensation and employee benefits	83,323			84,895			84,267			88,718			86,555
Occupancy and equipment	32,503			31,832			31,205			32,413			30,818
Deposit account premiums	5,659			7,292			2,441			1,496			572
Advertising and promotions	4,644			5,017			4,689			4,800			4,060
Operating lease depreciation	4,269			4,215			4,460			4,514			4,521
Other	49,412			44,337			41,667			36,335			46,087
Total non-interest expense	179,810			177,588			168,729			168,276			172,613
Income before income tax expense	45,231			46,015			42,557			71,857			85,692
Income tax expense	17,527			15,889			18,855			24,431			22,875
Net income	27,704			30,126			23,702			47,426			62,817
Preferred stock dividends	2,540			-			-			-			-
Net income available to common stockholders	$	25,164		$	30,126		$	23,702		$	47,426		$	62,817
Net income per common share:
Basic	$	.20		$	.24		$	.19		$	.38		$	.51
Diluted	.20			.24			.19			.38			.50
Dividends declared per common share	$	.2500		$	.2500		$	.2500		$	.2500		$	.2425
Financial Ratios:
Return on average assets (1)	.68		%	.73		%	.58		%	1.18		%	1.60		%
Return on average common equity (1)	9.00			11.11			8.57			17.08			23.55
Net interest margin (1)	3.84			3.97			4.00			3.84			3.83
Net charge-offs as a percentage of average loans and leases (1)	1.02			.82			.84			.44			.46
Average total equity to average assets	7.93			6.61			6.76			6.88			6.79

(1)  Annualized

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24

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS AND SUPPLEMENTAL INFORMATION

(In thousands)

(Unaudited)

	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
	2008			2008			2008			2008			2007
ASSETS
Cash and due from banks	$	297,252		$	288,884		$	280,606		$	304,441		$	310,010
Investments and other	166,580			157,612			148,366			150,659			147,058
Securities available for sale	1,966,561			2,160,887			2,184,580			2,140,951			2,187,068
Education loans held for sale	1,876			12,516			123,457			215,434			153,146
Loans and leases:
Consumer home equity:
Fixed-rate	5,033,725			5,072,689			5,084,761			4,983,410			4,889,304
Variable-rate	1,793,651			1,758,457			1,702,825			1,603,032			1,522,243
Consumer - other	43,619			45,939			46,492			44,008			45,294
Total consumer home equity and other	6,870,995			6,877,085			6,834,078			6,630,450			6,456,841
Commercial real estate:
Fixed- and adjustable-rate	2,287,226			2,181,838			2,062,983			1,975,344			1,839,817
Variable-rate	608,709			594,992			593,409			591,071			605,195
Total commercial real estate	2,895,935			2,776,830			2,656,392			2,566,415			2,445,012
Commercial business:
Fixed- and adjustable-rate	171,687			167,079			157,740			177,691			179,525
Variable-rate	350,949			377,747			371,730			365,997			395,356
Total commercial business	522,636			544,826			529,470			543,688			574,881
Leasing and equipment finance	2,389,225			2,300,429			2,229,467			2,140,695			2,005,889
Inventory finance	158			-			-			-			-
Subtotal	12,678,949			12,499,170			12,249,407			11,881,248			11,482,623
Residential real estate	462,807			477,436			496,367			517,791			537,449
Total loans and leases	13,141,756			12,976,606			12,745,774			12,399,039			12,020,072
Allowance for loan and lease losses	(160,662		)	(140,362		)	(102,126		)	(84,048		)	(77,072		)
Net loans and leases	12,981,094			12,836,244			12,643,648			12,314,991			11,943,000
Premises and equipment	447,249			443,185			442,016			440,516			435,426
Goodwill	152,599			152,599			152,599			152,599			152,599
Other assets	394,024			359,632			398,582			415,462			377,465
	$	16,407,235		$	16,411,559		$	16,373,854		$	16,135,053		$	15,705,772
LIABILITIES AND STOCKHOLDERS’ EQUITY
Non-interest-bearing deposits:
Retail	$	1,345,832		$	1,409,855		$	1,464,237		$	1,415,379		$	1,348,202
Small business	593,626			597,894			577,510			565,148			600,491
Commercial and custodial	234,045			253,900			238,779			200,624			201,161
Total non-interest bearing deposits	2,173,503			2,261,649			2,280,526			2,181,151			2,149,854
Interest-bearing deposits:
Premier checking	850,059			933,189			989,512			1,008,802			1,026,408
Other checking	904,052			904,351			894,436			837,804			816,512
Subtotal	1,754,111			1,837,540			1,883,948			1,846,606			1,842,920
Premier savings	1,397,516			1,403,323			1,518,703			1,473,997			1,353,638
Other savings	1,450,322			1,388,236			1,365,141			1,251,053			1,229,808
Subtotal	2,847,838			2,791,559			2,883,844			2,725,050			2,583,446
Money market	625,198			629,905			609,369			589,392			598,483
Subtotal	5,227,147			5,259,004			5,377,161			5,161,048			5,024,849
Certificates of deposit	2,448,815			2,469,327			2,471,216			2,500,362			2,307,411
Total interest-bearing deposits	7,675,962			7,728,331			7,848,377			7,661,410			7,332,260
Total deposits	9,849,465			9,989,980			10,128,903			9,842,561			9,482,114
Borrowings:
Short-term borrowings	454,202			429,861			363,302			399,023			450,027
Long-term borrowings	4,435,730			4,567,706			4,419,821			4,414,630			4,340,891
Total borrowings	4,889,932			4,997,567			4,783,123			4,813,653			4,790,918
Accrued expenses and other liabilities	366,063			339,304			355,187			368,216			365,888
Total liabilities	15,105,460			15,326,851			15,267,213			15,024,430			14,638,920
Stockholders’ equity:
Preferred stock	183,981			-			-			-			-
Common stock	1,309			1,309			1,311			1,312			1,315
Additional paid-in capital	328,078			336,127			347,043			351,447			353,365
Retained earnings	924,456			927,939			935,184			926,497			901,799
Accumulated other comprehensive loss	(13,896		)	(36,468		)	(19,748		)	(5,715		)	(24,229		)
Treasury stock at cost and other	(122,153		)	(144,199		)	(157,149		)	(162,918		)	(165,398		)
	1,301,775			1,084,708			1,106,641			1,110,623			1,066,852
	$	16,407,235		$	16,411,559		$	16,373,854		$	16,135,053		$	15,705,772
Supplemental Information:
Securities available for sale	$	1,966,561		$	2,160,887		$	2,184,580		$	2,140,951		$	2,187,068
Residential real estate loans	462,807			477,436			496,367			517,791			537,449
Total securities available for sale and residential real estate loans	$	2,429,368		$	2,638,323		$	2,680,947		$	2,658,742		$	2,724,517

-more-

25

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY YIELDS AND RATES (1)

(Unaudited)

	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,
	2008		2008		2008		2008		2007
ASSETS
Investments and other	2.93	%	4.16	%	3.86	%	4.38	%	4.31	%
Securities available for sale	5.13		5.29		5.28		5.28		5.37
Education loans held for sale	5.09		3.91		5.72		6.44		8.17
Loans and leases:
Consumer home equity:
Fixed-rate	6.71		6.79		6.82		6.94		6.98
Variable-rate	6.00		6.19		6.26		7.07		7.98
Consumer - other	8.57		8.34		8.60		8.96		9.76
Total consumer home equity and other	6.54		6.65		6.70		6.98		7.23
Commercial real estate:
Fixed- and adjustable-rate	6.14		6.11		6.21		6.34		6.44
Variable-rate	4.87		4.97		5.04		5.97		7.09
Total commercial real estate	5.87		5.88		5.95		6.27		6.60
Commercial business:
Fixed- and adjustable-rate	5.65		5.63		6.20		6.24		6.31
Variable-rate	4.44		4.59		4.86		5.90		6.91
Total commercial business	4.83		4.91		5.26		6.01		6.72
Leasing and equipment finance	7.15		7.14		7.38		7.65		7.82
Inventory finance	10.13		-		-		-		-
Subtotal	6.43		6.49		6.60		6.90		7.17
Residential real estate	5.71		5.75		5.86		5.86		5.77
Total loans and leases	6.40		6.47		6.57		6.86		7.11
Total interest-earning assets	6.20		6.27		6.35		6.60		6.83
LIABILITIES
Interest-bearing deposits:
Premier checking	1.04		.84		.93		1.62		2.49
Other checking	.32		.22		.23		.32		.40
Subtotal	.67		.54		.60		1.03		1.57
Premier savings	2.77		2.16		2.20		3.21		4.05
Other savings	.89		.73		.70		.96		1.14
Subtotal	1.82		1.45		1.49		2.18		2.66
Money market	1.67		1.46		1.45		2.03		2.74
Subtotal	1.41		1.13		1.17		1.76		2.27
Certificates of deposit	3.05		3.02		3.47		4.21		4.47
Total interest-bearing deposits	1.94		1.74		1.89		2.56		2.96
Total deposits	1.51		1.34		1.47		1.99		2.29
Borrowings:
Short-term borrowings	.97		2.13		2.19		3.64		4.57
Long-term borrowings	4.69		4.60		4.54		4.55		4.54
Total borrowings	4.34		4.39		4.37		4.48		4.54
Total interest-bearing liabilities	2.87		2.77		2.83		3.29		3.59
Net interest margin	3.84	%	3.97	%	4.00	%	3.84	%	3.83	%
(1)  Annualized

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