TCF Financial 8-K Results of Operations and Financial Condition

NEWS RELEASE	Exhibit 99.1
	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 59th Consecutive Quarter of Net Income – Earns $19.5 Million

FOURTH QUARTER HIGHLIGHTS

·Diluted earnings per common share of 15 cents

·Net income of $19.5 million

·Total revenue increased by $40.7 million, or 15 percent

·Net interest margin of 4.07 percent

·Average loans and leases increased by $1.3 billion, or 9.7 percent

·Average deposits increased by $1.5 billion, or 15.6 percent

·Restructured $240.1 million of consumer real estate loans in 2009 helping customers to stay in their homes

·Announced quarterly cash dividend of five cents per common share, payable February 26, 2010

Earnings Summary														Table 1
($ in thousands, except per-share data)							Percent Change
	4Q 2009		3Q 2009		4Q 2008		4Q09 vs 3Q09		4Q09 vs 4Q08		YTD 2009		YTD 2008		Percent Change
Net income	$ 19,456		$ 17,451		$ 27,704		11.5	%	(29.8)	%	$ 87,097		$ 128,958		(32.5	)%
Diluted earnings per common share	.15		.14		.20		7.1		(25.0)		.54		1.01		(46.5	)
Financial Ratios (1)
Return on average assets	.43	%	.39	%	.68	%					.49	%	.79	%
Return on average common equity (2)	6.57		6.03		9.00						8.57		11.46
Net interest margin	4.07		3.92		3.84						3.87		3.91
Net charge-offs as a percentage of average loans and leases	1.35		1.52		1.02						1.34		.78
(1) Annualized
(2) Year-to-date 2009 excludes a non-cash deemed preferred stock dividend of $12,025 recorded in the second quarter of 2009. Including this amount, the year-to-date return on average common equity was 5.95% for 2009.

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WAYZATA, MN, January 21, 2010 – TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported diluted earnings per common share of 15 cents for the fourth quarter of 2009, compared with 14 cents in the third quarter of 2009 and 20 cents in the fourth quarter of 2008. Net income for the fourth quarter of 2009 was $19.5 million, compared with $17.5 million in the third quarter of 2009 and $27.7 million in the fourth quarter of 2008.

Diluted earnings per common share was 54 cents for 2009, compared with $1.01 for 2008. Net income was $87.1 million for 2009, compared with $129 million for 2008. Diluted earnings per common share and net income for 2009, excluding the non-cash deemed preferred stock dividend in the second quarter of 2009, was 64 cents and $99.1 million, respectively.

TCF declared a quarterly cash dividend of five cents per common share payable on February 26, 2010 to stockholders of record at the close of business on January 29, 2010.

Chairman’s Statement

“TCF is reporting its 59th consecutive profitable quarter and has announced its 87th consecutive dividend payment,” said William A. Cooper, TCF Chairman and CEO. “While credit issues remain at elevated levels, TCF has remained profitable throughout this economic crisis and our credit metrics have outperformed most of our peers. An improving economy and stabilizing home values may signal improvements in the credit cycle in the coming quarters. TCF’s conservative business model has proven its sustainability throughout the recent economic recession. I remain optimistic about the future of TCF going into this new decade.”

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Total Revenue								Table 2
				Percent Change
($ in thousands)	4Q 2009	3Q 2009	4Q 2008	4Q09 vs 3Q09	4Q09 vs 4Q08	YTD 2009	YTD 2008	Percent Change
Net interest income	$ 169,641	$ 161,489	$ 147,117	5.0%	15.3%	$    633,006	$    593,673	6.6	%
Fees and other revenue:
Fees and service charges	74,875	77,433	67,448	(3.3)	11.0	286,908	270,739	6.0
Card revenue	26,813	26,393	25,243	1.6	6.2	104,770	103,082	1.6
ATM revenue	7,006	7,861	7,688	(10.9)	(8.9)	30,438	32,645	(6.8	)
Total banking fees	108,694	111,687	100,379	(2.7)	8.3	422,116	406,466	3.9
Leasing and equipment finance	24,408	15,173	16,298	60.9	49.8	69,113	55,488	24.6
Other	2,764	1,197	130	130.9	N.M.	5,239	12,107	(56.7	)
Total fees and other revenue	135,866	128,057	116,807	6.1	16.3	496,468	474,061	4.7
Gains on securities, net	7,283	-	8,167	N.M.	(10.8)	29,387	16,066	82.9
Visa share redemption	-	-	-	-	-	-	8,308	N.M.
Total non-interest income	143,149	128,057	124,974	11.8	14.5	525,855	498,435	5.5
Total revenue	$ 312,790	$ 289,546	$ 272,091	8.0	15.0	$ 1,158,861	$ 1,092,108	6.1
Net interest margin(1)	4.07%	3.92%	3.84%			3.87%	3.91%
Fees and other revenue as a % of total revenue	43.44	44.23	42.93			42.84	43.41
N.M. = Not meaningful
(1) Annualized

Net Interest Income

·Net interest income for the fourth quarter of 2009 was $169.6 million, up $22.5 million, or 15.3 percent, compared with the fourth quarter of 2008 and up $8.2 million, or 5 percent, compared with the third quarter of 2009. Net interest margin in the fourth quarter of 2009 was 4.07 percent, compared with 3.84 percent in the fourth quarter of 2008 and 3.92 percent in the third quarter of 2009. The increase in net interest margin in the fourth quarter of 2009 from the third quarter of 2009 was primarily due to lower average deposit rates and decreased amounts placed in low rate deposits at the Federal Reserve, partially offset by the negative impact of increased non-accrual loans and leases and loan restructurings. The increase in net interest margin in the fourth quarter of 2009 from the fourth quarter of 2008 was primarily due to decreased rates paid on deposits and earning asset growth, partially offset by an increased negative effect of non-accrual loans and leases and loan restructurings.

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·Net interest income in 2009 was $633 million, up $39.3 million, or 6.6 percent, from 2008. Net interest margin in 2009 was 3.87 percent, compared with 3.91 percent for 2008. The increase in net interest income from 2008 was primarily attributable to a $1.2 billion, or 7.9 percent, increase in average interest-earning assets, partially offset by a 4 basis point reduction in net interest margin. The decrease in net interest margin from 2008 was primarily due to declines in yields on interest-earning assets, resulting from lower market interest rates, the effect of higher balances of non-accrual loans and leases, loan restructurings and investments in lower yielding securities, partially offset by declines in rates paid on average deposits and an improvement in deposit mix.

Non-interest Income

·Banking fees and service charges in the fourth quarter of 2009 were $108.7 million, up $8.3 million, or 8.3 percent, from the fourth quarter of 2008 and down $3 million, or 2.7 percent, from the third quarter of 2009. Banking fees and service charges in 2009 were $422.1 million, up $15.7 million, or 3.9 percent, from 2008. The decrease from the third quarter of 2009 was primarily due to seasonal lower activity in deposit service fees. The increase from 2008 was primarily due to an increased number of checking accounts and related fee income.

·Card revenues in the fourth quarter of 2009 were $26.8 million, up $1.6 million, or 6.2 percent, from the fourth quarter of 2008 and up $420 thousand, or 1.6 percent, from the third quarter of 2009. Card revenues in 2009 totaled $104.8 million, up $1.7 million, or 1.6 percent, from 2008. The increases in all periods were the result of growth in active accounts and increases in customer transactions in 2009 partially offset by lower average transaction amounts.

·Leasing and equipment finance revenues in the fourth quarter of 2009 were $24.4 million, up $8.1 million, or 49.8 percent, from the fourth quarter of 2008 and up $9.2 million, or 60.9 percent, from the third quarter of 2009. Leasing and equipment finance revenues in 2009 were $69.1 million, up $13.6 million, or 24.6 percent, from 2008. The increase in leasing and equipment finance revenues was primarily due to higher sales-type lease revenue and increased operating lease revenue as a result of the Fidelity National Capital, Inc. acquisition by Winthrop Resources Corporation at the end of the third quarter of 2009. The acquisition

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also contributed $6.5 million to the increases in operating lease depreciation in the fourth quarter and full year of 2009.

·Other non-interest income in the fourth quarter of 2009 was $2.8 million, up $2.6 million from the fourth quarter of 2008 and up $1.6 million from the third quarter of 2009. Other non-interest income in 2009 was $5.2 million, down $6.9 million, or 56.7 percent, from 2008. The decrease in other non-interest income in 2009 from 2008 was primarily due to TCF no longer selling investment and insurance products in the branches, partially offset by servicing fees generated in the inventory finance business.

Loans and Leases

Average Loans and Leases										Table 3
				Percent Change
($ in thousands)	4Q 2009	3Q 2009	4Q 2008	4Q09 vs 3Q09		4Q09 vs 4Q08		YTD 2009	YTD 2008	Percent Change
Loans and leases:
Consumer real estate
First mortgage lien	$   4,954,306	$   4,939,529	$   4,866,310	.3	%	1.8	%	$   4,932,315	$   4,835,524	2.0	%
Junior lien	2,321,045	2,329,096	2,423,873	(.3	)	(4.2	)	2,351,033	2,411,502	(2.5	)
Total	7,275,351	7,268,625	7,290,183	.1		(.2	)	7,283,348	7,247,026	.5
Consumer other	32,676	35,015	45,495	(6.7	)	(28.2	)	35,849	132,890	(73.0	)
Total consumer	7,308,027	7,303,640	7,335,678	.1		(.4	)	7,319,197	7,379,916	(.8	)
Commercial real estate	3,241,269	3,193,686	2,895,935	1.5		11.9		3,136,699	2,724,507	15.1
Commercial business	443,013	477,041	522,636	(7.1	)	(15.2	)	475,674	535,147	(11.1	)
Total commercial	3,684,282	3,670,727	3,418,571	.4		7.8		3,612,373	3,259,654	10.8
Leasing and equipment finance	3,049,093	2,811,165	2,389,225	8.5		27.6		2,826,835	2,265,391	24.8
Inventory finance	383,291	185,914	158	106.2		N.M.		179,990	40	N.M.
Total	$ 14,424,693	$ 13,971,446	$ 13,143,632	3.2		9.7		$ 13,938,395	$ 12,905,001	8.0
N.M. = Not meaningful

·Average consumer real estate loan balances for the fourth quarter of 2009 compared to the fourth quarter of 2008, and the third quarter of 2009, as well as all of 2009 compared to all of 2008 were relatively flat reflecting less demand for home equity financing due in part to declines in home values and reductions in consumer spending in the weak economy.

·At December 31, 2009, 68.1 percent of the consumer real estate loan portfolio was secured by first liens. The average home value used to secure consumer real estate loans was $250 thousand at December 31, 2009.

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·Average commercial loan balances in the fourth quarter of 2009 increased $265.7 million, or 7.8 percent, from the fourth quarter of 2008 and were essentially flat from the third quarter of 2009. Average commercial loan balances in 2009 increased $352.7 million, or 10.8 percent, from 2008. Increases in average commercial loan balances in 2009 were the result of increased opportunities to attract high quality customers who have fewer competitive alternatives.

·Average leasing and equipment finance balances in the fourth quarter of 2009 increased $659.9 million, or 27.6 percent, from the fourth quarter of 2008 and increased $237.9 million, or 8.5 percent, from the third quarter of 2009. Average leasing and equipment finance balances in 2009 increased $561.4 million, or 24.8 percent, from 2008. Portfolio purchases and company acquisitions in the first and third quarters of 2009 contributed $428.7 million of the increase in average balances in fourth quarter 2009 from the fourth quarter of 2008, $200.2 million of the increase from the third quarter of 2009 and $256.3 million of the increase in average balances in 2009 from 2008.

·Average inventory finance loans in the fourth quarter of 2009 increased $197.4 million, or 106.2 percent, from the third quarter of 2009. The increase was due primarily to purchases of inventory finance loans in the lawn and garden sector in the fourth quarter totaling $225.8 million.

Securities Available for Sale

Average Securities Available for Sale												Table 4
				Yield						Yield
($ in thousands)	4Q 2009	3Q 2009	4Q 2008	4Q09		4Q08		YTD 2009	YTD 2008	YTD 2009		YTD 2008
U.S. Government sponsored entities:
Mortgage-backed securities	$ 1,497,672	$ 1,432,670	$ 1,963,608	4.73	%	5.13	%	$ 1,645,544	$ 2,100,291	4.92	%	5.26	%
Debentures	413,647	600,098	-	2.23		-		389,245	-	2.18		-
Other securities	68,415	489	2,953	.11		3.93		17,617	12,674	.22		3.50
Total	$ 1,979,734	$ 2,033,257	$ 1,966,561	4.05		5.13		$ 2,052,406	$ 2,112,965	4.36		5.25

·In December of 2009, TCF sold $600.1 million of Fannie Mae and Freddie Mac callable debentures with a weighted average yield of 2.19 percent and $86.4 million of Fannie Mae and Freddie Mac mortgage-backed securities with a weighted average yield of 5.36 percent and purchased $624.1 million of Fannie Mae and Freddie Mac mortgage-backed securities with a weighted average yield of 4.13 percent.

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Deposits

Average Deposits										Table 5
				Percent Change
($ in thousands)	4Q 2009	3Q 2009	4Q 2008	4Q09 vs 3Q09		4Q09 vs 4Q08		YTD 2009	YTD 2008	Percent Change
Non-interest bearing deposits:
Retail	$ 1,355,543	$ 1,380,591	$ 1,345,832	(1.8	)%	.7	%	$ 1,402,442	$1,408,657	(.4	)%
Small business	611,454	591,451	593,626	3.4		3.0		584,605	583,611	.2
Commercial	297,223	277,135	234,045	7.2		27.0		265,681	231,903	14.6
Subtotal	2,264,220	2,249,177	2,173,503	.7		4.2		2,252,728	2,224,171	1.3
Interest-bearing deposits:
Checking	1,868,911	1,800,583	1,754,111	3.8		6.5		1,802,694	1,830,361	(1.5	)
Savings	5,214,318	5,071,509	2,847,838	2.8		83.1		4,732,316	2,812,115	68.3
Money market	671,755	723,098	625,198	(7.1	)	7.4		683,030	613,543	11.3
Subtotal	7,754,984	7,595,190	5,227,147	2.1		48.4		7,218,040	5,256,019	37.3
Certificates	1,366,871	1,757,884	2,448,815	(22.2	)	(44.2	)	1,915,467	2,472,357	(22.5	)
Subtotal	9,121,855	9,353,074	7,675,962	(2.5	)	18.8		9,133,507	7,728,376	18.2
Total deposits	$11,386,075	$11,602,251	$ 9,849,465	(1.9	)	15.6		$11,386,235	$9,952,547	14.4
Average interest rate on deposits	.74%	.94%	1.51%					1.07%	1.58%

·Total average deposits in the fourth quarter of 2009 were $11.4 billion, up $1.5 billion, or 15.6 percent, from the fourth quarter of 2008 and down $216 million, or 1.9 percent, from the third quarter of 2009.  Total average deposits in 2009 were $11.4 billion, up $1.4 billion, or 14.4 percent, from 2008.  The increase in average deposits in the fourth quarter of 2009 from the fourth quarter of 2008 and the increase for the full year of 2009 from 2008 were primarily due to strong growth in savings deposits due to several initiatives involving products, pricing and marketing efforts, partially offset by declines in certificates of deposits resulting from reduced interest rates. Average deposit balances decreased from the third quarter of 2009 primarily due to management’s strategy to decrease balances of higher cost certificates of deposits and money market deposits, partially offset by increases in savings and interest-bearing checking deposits.

·The average rate paid on deposits in the fourth quarter of 2009 was .74 percent, down 77 basis points from the fourth quarter of 2008 and down 20 basis points from the third quarter of 2009.  The average rate paid on deposits in 2009 was 1.07 percent, down 51 basis points from 2008.  Average rate paid on deposits declined due to reductions in interest rates paid on certain deposit products and mix changes as a result of management’s strategy to reduce balances of certificates of deposit. The weighted average interest rate on total deposits was .65 percent at December 31, 2009.

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Non-interest Expense

Non-interest Expense										Table 6
				Percent Change
($ in thousands)	4Q 2009	3Q 2009	4Q 2008	4Q09 vs 3Q09		4Q09 vs 4Q08		YTD 2009	YTD 2008	Percent Change
Compensation and employee benefits	$ 89,374	$ 90,680	$ 83,323	(1.4	)%	7.3	%	$ 356,996	$ 341,203	4.6	%
Occupancy and equipment	31,099	31,619	32,503	(1.6	)	(4.3	)	126,292	127,953	(1.3	)
Deposit account premiums	9,347	7,472	5,659	25.1		65.2		30,682	16,888	81.7
Advertising and marketing	3,789	4,766	4,643	(20.5	)	(18.4	)	17,134	19,150	(10.5	)
FDIC premiums and assessments	5,288	5,085	1,706	4.0		N.M.		27,471	2,990	N.M.
Foreclosed real estate and repossessed assets	12,088	8,038	6,341	50.4		90.6		30,542	18,731	63.1
Other	45,028	38,873	41,366	15.8		8.9		156,299	150,030	4.2
Subtotal	196,013	186,533	175,541	5.1		11.7		745,416	676,945	10.1
Operating lease depreciation	10,750	3,734	4,269	187.9		151.8		22,368	17,458	28.1
Total non-interest expense	$206,763	$190,267	$179,810	8.7		15.0		$767,784	$694,403	10.6
N.M. = Not meaningful

·The increased compensation and employee benefits costs in the fourth quarter of 2009 from the fourth quarter of 2008 and the increase for the full year of 2009 from 2008 were primarily due to increased employee medical plan expenses and increased costs in leasing and equipment finance and inventory finance as a result of expansion and growth, partially offset by headcount reductions in banking.

·The increased FDIC premiums and assessments in the fourth quarter of 2009 from the fourth quarter of 2008 were primarily due to higher insurance rates and deposit growth.  The increase in FDIC premiums and assessments in 2009 from 2008 was primarily due to higher insurance rates and deposit growth as well as a FDIC special assessment of $8.2 million in June of 2009.  On December 30, 2009, TCF was required to prepay $77.6 million of premiums to the FDIC.  The expense related to this prepayment is anticipated to be recognized over the next three years based on actual calculations of quarterly premiums.

·Foreclosed real estate and repossessed asset expenses in the fourth quarter of 2009 increased $5.7 million, or 90.6 percent, from the fourth quarter of 2008 and increased $4.1 million, or 50.4 percent, from the third quarter of 2009. Foreclosed real estate and repossessed asset expenses increased $11.8 million in 2009, or 63.1 percent, from 2008.  The increases from all periods were primarily due to increased numbers of foreclosed commercial and consumer real estate properties, adjustments to property valuations and losses on sales of properties.

·In the fourth quarter of 2009, management began a reorganization of its structure and business segments, incurring $3.4 million of severance costs, which are included in other non-interest expense.

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Credit Quality

Credit Quality Summary																	Table 7
										Percent Change
($ in thousands)	4Q 2009			3Q 2009			4Q 2008			4Q09 vs  3Q09		4Q09 vs 4Q08		YTD 2009			YTD 2008			%   Chg
Allowance for Loan and Lease Losses
Balance at beginning of period	$	215,732		$	193,445		$	158,978		11.5	%	35.7	%	$	172,442		$	80,942		113.0	%
Charge-offs	(52,841		)	(57,214		)	(37,100)			(7.6	)	42.4		(202,398		)	(114,800		)	76.3
Recoveries	4,191			3,957			3,514			6.0		19.3		15,891			14,255			11.5
Net charge-offs	(48,650		)	(53,257		)	(33,586		)	(8.7	)	44.8		(186,507		)	(100,545		)	85.5
Provision for credit losses	77,389			75,544			47,050			2.4		64.5		258,536			192,045			34.6
Balance at end of period	$	244,471		$	215,732		$	172,442		13.3		41.8		$	244,471		$	172,442		41.8
Allowance as a percentage of period end loans and leases	1.68		%	1.51		%	1.29		%					1.68		%	1.29		%
Ratio of allowance to net charge-offs(1)	1.3		X	1.0		X	1.3		X					1.3		X	1.7		X
Credit Loss Reserves
Allowance for loan and lease losses	$	244,471		$	215,732		$	172,442		13.3		41.8
Reserves netted against portfolio asset balances	10,168			12,951			-			(21.5	)	N.M.
Reserves for unfunded commitments	3,850			2,871			1,510			34.1		155.0
Total credit loss reserves	$	258,489		$	231,554		$	173,952		11.6		48.6
Total credit loss reserves as a % of period end loans and leases	1.77		%	1.61		%	1.30		%
Non-accrual loans and leases	$	296,275		$	268,834		$	172,518		10.2		71.7
Real estate owned	105,768			94,167			61,665			12.3		71.5
Total non-performing assets	$	402,043		$	363,001		$	234,183		10.8		71.7
Non-performing assets as a percentage of net loans and leases	2.80		%	2.57		%	1.78		%
Accruing consumer real estate restructured loans	$	252,510		$	159,881		$	27,423		57.9	%	N.M.
N.M. = Not meaningful
(1) Annualized

At December 31, 2009:

·Allowance for loan and lease losses was $244.5 million, or 1.68 percent of loans and leases, compared with $215.7 million, or 1.51 percent, at September 30, 2009 and $172.4 million, or 1.29 percent, at December 31, 2008.

·Over 60-day delinquency rate was .69 percent, down from .81 percent at September 30, 2009 and up from .60 percent at December 31, 2008, primarily due to fluctuations in consumer real estate delinquency rates.

·Non-accrual loans and leases increased $27.4 million, or 10.2 percent, from September 30, 2009 and $123.8 million, or 71.7 percent, from December 31, 2008 primarily due to increases in consumer and commercial real estate non-accrual loans.

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·Loan restructuring programs for consumer real estate borrowers implemented in the third quarter of 2009 have resulted in a significant increase in troubled debt restructurings, which management refers to as restructured loans.  Restructured loan borrowers have experienced financial difficulties and concessions were granted that would not otherwise have been considered.  Restructured loans generally accrue interest although at lower rates than the original loan over their restructured period. During the fourth quarter and for the full year of 2009, TCF restructured loans totaling $95.4 million and $240.1 million, respectively.  At December 31, 2009, total restructured loans were $252.5 million, up from $27.4 million at December 31, 2008. Reserves for losses on accruing consumer real estate restructured loans were $27 million, or 10.7 percent of the outstanding balance at December 31, 2009.  The over 60-day delinquency rate on these restructured loans was 2.48 percent at December 31, 2009.

For the quarter ended December 31, 2009:

·Provision for credit losses was $77.4 million, up from $47.1 million in the fourth quarter of 2008 and relatively flat compared to the $75.5 million recorded in the third quarter of 2009. The increase from the fourth quarter of 2008 was primarily due to increased reserves for certain commercial loans and restructured consumer real estate loans and increased consumer real estate, commercial and leasing net charge-offs.

·Net loan and lease charge-offs were $48.7 million, or 1.35 percent annualized, of average loans and leases, up from $33.6 million, or 1.02 percent annualized, of average loans and leases from the fourth quarter of 2008 and down from $53.3 million, or 1.52 percent annualized, of average loans and leases in the third quarter of 2009. Increases over the fourth quarter of 2008 were primarily due to increases in consumer real estate, commercial real estate and leasing and equipment finance net charge-offs.  The decrease from the third quarter of 2009 was the result of decreases in every category with the exception of a small increase in consumer loan net charge-offs.

“For the first time in eight quarters, TCF experienced a decrease in total net charge-offs,” said William A. Cooper.  “While this decrease may not signal a trend, TCF is starting to realize the value associated with the stabilization or increases in property values in most of our markets and a slight improvement in economic

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activity.  While charge-offs remain high compared with historical standards, the overall value of TCF’s secured lending philosophy has been evident during one of the worst economies of our era.”

Income Taxes

·Income tax expense was $9.4 million for the fourth quarter of 2009, or 32.8 percent of pre-tax income, compared with $17.5 million, or 38.8 percent of pre-tax income, for the comparable 2008 period and $6.5 million, or 27.4 percent of pre-tax income, for the third quarter 2009.  The effective tax rate for the fourth quarter of 2009 has a year-to-date change in estimate of the rate of $1.1 million, or 85 basis points on the effective tax rate. Income tax expense for the fourth quarter of 2008 included a $1.5 million increase in income tax expense for distributions from the company’s deferred compensation plans.  Excluding this item, the effective income tax rate was 35.5 percent for 2008.

·Income tax expense was $45.9 million for 2009, or 34.6 percent of pre-tax income, compared with $76.7 million, or 37.3 percent of pre-tax income, for 2008.  Income tax expense for 2009 included a $4.2 million decrease in income tax expense related to favorable developments in uncertain tax positions, partially offset by a slight increase in the effective income tax rate.  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 related to distributions from the company’s deferred compensation plans.  Excluding these significant items, the effective income tax rate was 37.8 percent for 2009, up from 34.2 percent for 2008 due to higher state income taxes.

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Capital and Liquidity

Capital Information						Table 8
At period end
($ in thousands, except per-share data)	4Q			4Q
	2009			2008
Total TCF stockholders’ equity	$1,179,755			$1,493,776
Total equity	$1,175,362			$1,493,776
Total equity to total assets	6.60	%		8.92	%
Book value per common share	$         9.10			$         8.99
Tangible realized common equity to tangible assets(1)	5.86	%		6.01	%
Risk-based capital
Tier 1	$1,161,750		8.52 %	$1,461,973		11.79 %
Total	1,514,878		11.12	1,817,225		14.65
Total stated “well-capitalized” requirement	1,362,795		10.00	1,240,147		10.00
Excess over stated “well-capitalized” requirement	152,083		1.12	577,078		4.65
(1) Excludes the impact of preferred stock, goodwill, other intangibles and accumulated other comprehensive income (loss) (see “Reconciliation of GAAP to Non-GAAP Measures” table).

·Total risk-based capital at December 31, 2009 of $1.5 billion, or 11.12 percent of risk-weighted assets, was $152.1 million in excess of the stated “well-capitalized” requirement.  Decreases in tier 1 and total risk-based capital are primarily the result of TCF redeeming all shares of preferred stock issued to the U.S. Department of Treasury under the Capital Purchase Program for $361.2 million in April of 2009.

·In December, the U.S. Department of Treasury completed a public auction for the warrant issued by TCF under the Capital Purchase Program, which is now being traded under the symbol “TCB WS” on the New York Stock Exchange.

·On January 19, 2010, the Board of Directors of TCF declared a regular quarterly cash dividend of five cents per common share payable on February 26, 2010 to stockholders of record at the close of business on January 29, 2010.

·At December 31, 2009, TCF had $1.9 billion in unused, secured borrowing capacity at the FHLB of Des Moines and $708 million in unused, secured borrowing capacity at the Federal Reserve Discount Window.

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13

Website Information

A live webcast of TCF’s conference call to discuss 2009 earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on January 21, 2010 at 10:00 a.m., CST. 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 $17.9 billion in total assets. TCF has 443 banking offices in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF also conducts commercial leasing and equipment finance business in all 50 states and commercial inventory finance business in the U.S. and Canada. For more information about TCF, please visit www.tcfbank.com.

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14

Forward-Looking Information

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

Adverse Economic or Business Conditions, Credit Risks.  Continued or deepening deterioration in general economic and banking industry conditions, or continued increases in unemployment in TCF’s primary banking markets; adverse economic, business and competitive developments such as shrinking interest margins, deposit outflows, deposit account attrition, or an inability to increase the number of deposit accounts; adverse changes in credit and other risks posed by TCF’s loan, lease, investment, and securities available for sale portfolios, including continuing declines in commercial or residential real estate values or changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements.

Earnings/capital constraints, Liquidity Risks.  Limitations on TCF’s ability to pay dividends or to increase dividends in the future because of financial performance deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to deteriorating conditions in the banking industry and the economic impact on banks of the Emergency Economic Stabilization Act, as amended (“EESA”); the impact of financial regulatory reform proposals, including possible additional capital requirements; adverse changes in securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund its operations; diminished unsecured borrowing capacity resulting from TCF credit rating downgrades and unfavorable conditions in the credit markets that restrict or limit various funding sources.

Legislative and Regulatory Requirements.  Consumer protection and supervisory requirements which could include the creation of a new consumer protection agency and limits on Federal preemption for state laws that could be applied to national banks; the imposition of requirements with an adverse impact relating to TCF’s lending, loan collection and other business activities as a result of the EESA,  or other legislative or regulatory developments such as mortgage foreclosure moratorium laws; reduction of interchange revenue from debit card transactions; impact of legislative, regulatory or other changes affecting customer account charges and fee income; changes to bankruptcy laws which would result in the loss of all or part of TCF’s security interest due to collateral value declines (so-called “cramdown” provisions);  adverse regulatory examinations and resulting enforcement actions, including those provided for under the Bank Secrecy Act; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity.

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

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

Accounting, Audit, Tax and Insurance Matters.  Changes in accounting standards or interpretations of existing standards; monetary, fiscal or tax policies of the federal or state governments, including adoption of state legislation that would increase state taxes; adverse state or Federal tax assessments or findings in tax audits; lack of or inadequate insurance coverage for claims against TCF.

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

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

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15

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

	Three Months Ended December 31,				Change
	2009		2008		$		%
Interest income:
Loans and leases	$	222,300	$	211,346	$	10,954	5.2	%
Securities available for sale	20,035		25,232		(5,197)		(20.6)
Investments and other	1,160		1,224		(64)		(5.2)
Total interest income	243,495		237,802		5,693		2.4
Interest expense:
Deposits	21,171		37,362		(16,191)		(43.3)
Borrowings	52,683		53,323		(640)		(1.2)
Total interest expense	73,854		90,685		(16,831)		(18.6)
Net interest income	169,641		147,117		22,524		15.3
Provision for credit losses	77,389		47,050		30,339		64.5
Net interest income after provision for credit losses	92,252		100,067		(7,815)		(7.8)
Non-interest income:
Fees and service charges	74,875		67,448		7,427		11.0
Card revenue	26,813		25,243		1,570		6.2
ATM revenue	7,006		7,688		(682)		(8.9)
Subtotal	108,694		100,379		8,315		8.3
Leasing and equipment finance	24,408		16,298		8,110		49.8
Other	2,764		130		2,634		N.M.
Fees and other revenue	135,866		116,807		19,059		16.3
Gains on securities, net	7,283		8,167		(884)		(10.8)
Total non-interest income	143,149		124,974		18,175		14.5
Non-interest expense:
Compensation and employee benefits	89,374		83,323		6,051		7.3
Occupancy and equipment	31,099		32,503		(1,404)		(4.3)
Deposit account premiums	9,347		5,659		3,688		65.2
Advertising and promotions	3,789		4,643		(854)		(18.4)
FDIC premiums and assessments	5,288		1,706		3,582		N.M.
Foreclosed real estate and repossessed assets, net	12,088		6,341		5,747		90.6
Other	45,028		41,366		3,662		8.9
Subtotal	196,013		175,541		20,472		11.7
Operating lease depreciation	10,750		4,269		6,481		151.8
Total non-interest expense	206,763		179,810		26,953		15.0
Income before income tax expense	28,638		45,231		(16,593)		(36.7)
Income tax expense	9,385		17,527		(8,142)		(46.5)
Income after income tax expense	19,253		27,704		(8,451)		(30.5)
Income (loss) attributable to non-controlling interest	(203)		-		(203)		N.M.
Net income	19,456		27,704		(8,248)		(29.8)
Preferred stock dividends	-		2,540		(2,540)		N.M.
Net income available to common stockholders	$	19,456	$	25,164	$	(5,708)	(22.7)
Net income per common share:
Basic	$	.15	$	.20	$	(.05)	(25.0)
Diluted	.15		.20		(.05)		(25.0)
Dividends declared per common share	$	.05	$	.25	$	(.20)	(80.0)
Average common and common equivalent shares outstanding (in thousands):
Basic	127,157		125,345		1,812		1.4
Diluted	127,203		125,355		1,848		1.5
N.M. Not meaningful

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16

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

	Year Ended December 31,				Change
	2009		2008		$		%
Interest income:
Loans and leases	$	864,384	$	847,512	$	16,872	2.0	%
Securities available for sale	89,427		110,946		(21,519)		(19.4)
Investments and other	4,370		5,937		(1,567)		(26.4)
Total interest income	958,181		964,395		(6,214)		(.6)
Interest expense:
Deposits	122,112		156,774		(34,662)		(22.1)
Borrowings	203,063		213,948		(10,885)		(5.1)
Total interest expense	325,175		370,722		(45,547)		(12.3)
Net interest income	633,006		593,673		39,333		6.6
Provision for credit losses	258,536		192,045		66,491		34.6
Net interest income after provision for credit losses	374,470		401,628		(27,158)		(6.8)
Non-interest income:
Fees and service charges	286,908		270,739		16,169		6.0
Card revenue	104,770		103,082		1,688		1.6
ATM revenue	30,438		32,645		(2,207)		(6.8)
Subtotal	422,116		406,466		15,650		3.9
Leasing and equipment finance	69,113		55,488		13,625		24.6
Other	5,239		12,107		(6,868)		(56.7)
Fees and other revenue	496,468		474,061		22,407		4.7
Gains on securities, net	29,387		16,066		13,321		82.9
Visa share redemption	-		8,308		(8,308)		N.M.
Total non-interest income	525,855		498,435		27,420		5.5
Non-interest expense:
Compensation and employee benefits	356,996		341,203		15,793		4.6
Occupancy and equipment	126,292		127,953		(1,661)		(1.3)
Deposit account premiums	30,682		16,888		13,794		81.7
Advertising and promotions	17,134		19,150		(2,016)		(10.5)
FDIC premiums and assessments	27,471		2,990		24,481		N.M.
Foreclosed real estate and repossessed assets, net	30,542		18,731		11,811		63.1
Other	156,299		150,030		6,269		4.2
Subtotal	745,416		676,945		68,471		10.1
Operating lease depreciation	22,368		17,458		4,910		28.1
Total non-interest expense	767,784		694,403		73,381		10.6
Income before income tax expense	132,541		205,660		(73,119)		(35.6)
Income tax expense	45,854		76,702		(30,848)		(40.2)
Income after income tax expense	86,687		128,958		(42,271)		(32.8)
Income (loss) attributable to non-controlling interest	(410)		-		(410)		N.M.
Net income	87,097		128,958		(41,861)		(32.5)
Preferred stock dividends	18,403		2,540		15,863		N.M.
Net income available to common stockholders	$	68,694	$	126,418	$	(57,724)	(45.7)
Net income per common share:
Basic	$	.54	$	1.01	$	(.47)	(46.5)
Diluted	.54		1.01		(.47)		(46.5)
Dividends declared per common share	$	.40	$	1.00	$	(.60)	(60.0)
Average common and common equivalent shares outstanding (in thousands):
Basic	126,593		124,943		1,650		1.3
Diluted	126,594		124,962		1,632		1.3
N.M. Not meaningful.

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17

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

	At December 31,				Change
	2009		2008		$		%
ASSETS
Cash and due from banks	$	299,127	$	342,380	$	(43,253)	(12.6)	%
Investments	163,692		155,725		7,967		5.1
Securities available for sale	1,910,476		1,966,104		(55,628)		(2.8)
Loans and leases:
Consumer real estate and other	7,331,991		7,364,340		(32,349)		(.4)
Commercial real estate	3,269,003		2,984,156		284,847		9.5
Commercial business	449,516		506,887		(57,371)		(11.3)
Leasing and equipment finance	3,071,429		2,486,082		585,347		23.5
Inventory finance	468,805		4,425		464,380		N.M.
Total loans and leases	14,590,744		13,345,890		1,244,854		9.3
Allowance for loan and lease losses	(244,471)		(172,442)		(72,029)		41.8
Net loans and leases	14,346,273		13,173,448		1,172,825		8.9
Premises and equipment, net	447,930		447,826		104		-
Goodwill	152,599		152,599		-		-
Other assets	565,078		502,275		62,803		12.5
Total assets	$	17,885,175	$	16,740,357	$	1,144,818	6.8
LIABILITIES AND EQUITY
Deposits:
Checking	$	4,400,290	$	3,969,768	$	430,522	10.8
Savings	5,339,955		3,057,623		2,282,332		74.6
Money market	640,569		619,678		20,891		3.4
Subtotal	10,380,814		7,647,069		2,733,745		35.7
Certificates of deposit	1,187,505		2,596,283		(1,408,778)		(54.3)
Total deposits	11,568,319		10,243,352		1,324,967		12.9
Short-term borrowings	244,604		226,861		17,743		7.8
Long-term borrowings	4,510,895		4,433,913		76,982		1.7
Total borrowings	4,755,499		4,660,774		94,725		2.0
Accrued expenses and other liabilities	381,602		342,455		39,147		11.4
Total liabilities	16,705,420		15,246,581		1,458,839		9.6
Equity:
Preferred stock, par value $.01 per share, 30,000,000 authorized; 0 and 361,172 shares issued	-		348,437		(348,437)		N.M.
Common stock, par value $.01 per share, 280,000,000 shares authorized; 130,339,500 and 130,839,378 shares issued	1,303		1,308		(5)		(.4)
Additional paid-in capital	297,429		330,474		(33,045)		(10.0)
Retained earnings, subject to certain restrictions	946,002		927,893		18,109		2.0
Accumulated other comprehensive income (loss)	(18,545)		(3,692)		(14,853)		N.M.
Treasury stock at cost, 1,136,688 and 3,413,855 shares, and other	(50,827)		(110,644)		59,817		(54.1)
Total TCF stockholders’ equity	1,175,362		1,493,776		(318,414)		(21.3)
Non-controlling interest in subsidiaries	4,393		-		4,393		N.M.
Total equity	1,179,755		1,493,776		(314,021)		(21.0)
Total liabilities and equity	$	17,885,175	$	16,740,357	$	1,144,818	6.8
N.M. Not meaningful.

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18

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, 2009			At September 30, 2009			At December 31, 2008			Change from
	Allowance			Allowance			Allowance			Sep 30,	Dec. 31,
	Balance		% of Portfolio	Balance		% of Portfolio	Balance		% of Portfolio	2009	2008
Consumer real estate	$	164,966	2.27%	$	136,783	1.88%	$	98,436	1.35%	39 bps	92 bps
Consumer other	2,476		4.82	2,945		5.15	2,664		4.26	(33)	56
Total consumer real estate and other	167,442		2.28	139,728		1.90	101,100		1.37	38	91
Commercial real estate	37,274		1.14	38,335		1.18	39,386		1.32	(4)	(18)
Commercial business	6,230		1.39	7,706		1.65	11,865		2.34	(26)	(95)
Leasing and equipment finance	32,063		1.04	29,130		.95	20,058		.81	9	23
Inventory finance	1,462		.31	833		.37	33		.75	(6)	(44)
Total allowance for loan and lease losses	$    244,471		1.68	$	215,732	1.51	$	172,442	1.29	17	39
Credit Loss Reserves
	At December 31, 2009			At September 30, 2009			At December 31, 2008			Change from
	Credit loss reserve			Credit loss reserve			Credit loss reserve			Sep. 30,	Dec. 31,
	Balance		% of Portfolio	Balance		% of Portfolio	Balance		% of Portfolio	2009	2008
Allowance for loan and lease losses	$	244,471	1.68%	$	215,732	1.51%	$	172,442	1.29%	17 bps	39 bps
Reserves netted against portfolio asset balances	10,168		N.M.	12,951		N.M.	-		-	-	-
Reserves for unfunded commitments	3,850		N.M.	2,871		N.M.	1,510		N.M.	-	-
Total credit loss reserves	$	258,489	1.77	$	231,554	1.61	$	173,952	1.30	16	47

Net Charge-Offs

	Quarter Ended										Change from
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Dec. 31,
	2009		2009		2009		2009		2008		2009		2008
Consumer real estate
First mortgage lien	$	16,646	$	15,694	$	11,795	$	10,477	$	10,198	$	952	$	6,448
Junior lien	14,757		14,201		11,201		11,849		10,664		556		4,093
Total consumer real estate	31,403		29,895		22,996		22,326		20,862		1,508		10,541
Consumer other	2,219		2,587		1,661		1,290		3,303		(368)		(1,084)
Total consumer real estate and other	33,622		32,482		24,657		23,616		24,165		1,140		9,457
Commercial real estate	5,585		6,758		19,531		3,640		2,958		(1,173)		2,627
Commercial business	1,674		4,514		(55)		2,981		2,631		(2,840)		(957)
Leasing and equipment finance	7,681		9,409		5,529		4,701		3,832		(1,728)		3,849
Inventory finance	88		94		-		-		-		(6)		88
Total	$	48,650	$	53,257	$	49,662	$	34,938	$	33,586	$	(4,607)	$	15,064

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,
	2009		2009		2009		2009		2008		2009		2008
Consumer real estate
First mortgage lien	1.34	%	1.27	%	.96	%	.86	%	.84	%	7	bps	50	bps
Junior lien	2.54		2.44		1.90		1.98		1.76		10		78
Total consumer real estate	1.73		1.65		1.26		1.22		1.14		8		59
Consumer other	N.M.		N.M.		N.M.		N.M.		N.M.		N.M.		N.M.
Total consumer real estate and other	1.84		1.78		1.35		1.29		1.32		6		52
Commercial real estate	.69		.85		2.51		.49		.41		(16)		28
Commercial business	1.51		3.78		(.05)		2.39		2.01		(227)		(50)
Leasing and equipment finance	1.01		1.34		.79		.71		.64		(33)		37
Inventory finance	.09		.20		-		-		-		(11)		9
Total	1.35		1.52		1.43		1.04		1.02		(17)		33

(1)   Annualized

N.M. Not meaningful.

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19

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

	At			At			At			At			At			Change from
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Dec. 31,
	2009			2009			2009			2009			2008			2009			2008
Restructured Loans (1)
Consumer - accruing	$	252,510		$	159,881		$	51,483		$	24,877		$	27,423		$	92,629		$	225,087
Potential Problem Loans and Leases (1) (2)
Commercial real estate	$	288,848		$	222,437		$	143,644		$	176,277		$	137,332		$	66,411		$	151,516
Commercial business	42,464			71,809			41,847			35,826			27,127			(29,345)			15,337
Leasing and equipment finance	38,998			35,185			27,970			27,898			20,994			3,813			18,004
Total	$	370,310		$	329,431		$	213,461		$	240,001		$	185,453		$	40,879		$	184,857
Non-performing assets
Non-accrual loans and leases:
Consumer real estate
First mortgage lien	$	118,313		$	104,646		$	83,766		$	82,082		$	71,078		$	13,667		$	47,235
Junior lien	20,846			13,964			11,209			11,373			11,793			6,882			9,053
Total consumer real estate	139,159			118,610			94,975			93,455			82,871			20,549			56,288
Consumer other	141			120			147			146			65			21			76
Total consumer real estate and other	139,300			118,730			95,122			93,601			82,936			20,570			56,364
Commercial real estate	77,627			93,419			87,252			67,264			54,615			(15,792)			23,012
Commercial business	28,569			9,836			11,532			11,857			14,088			18,733			14,481
Leasing and equipment finance	50,008			46,806			46,011			33,190			20,879			3,202			29,129
Inventory finance	771			43			-			4			-			728			771
Total non-accrual loans and leases	296,275			268,834			239,917			205,916			172,518			27,441			123,757
Other real estate owned:
Consumer real estate	66,956			73,397			72,745			45,633			38,632			(6,441)			28,324
Commercial real estate	38,812			20,770			24,117			25,115			23,033			18,042			15,779
Total other real estate owned	105,768			94,167			96,862			70,748			61,665			11,601			44,103
Total non-performing assets	$	402,043		$	363,001		$	336,779		$	276,664		$	234,183		$	39,042		$	167,860
Non-performing assets as a percentage of net loans and leases	2.80		%	2.57		%	2.45		%	2.03		%	1.78		%	23		bps	102		bps
Current allowance plus charge-offs and writedowns to date as a percentage of contractual balance:
Non-accrual loans and leases
Consumer real estate	19.3		%	18.4		%	17.0		%	14.2		%	13.6		%	90		bps	570		bps
Commercial	25.7			29.7			27.8			28.7			31.2			(400)			(550)
Leasing and equipment finance	29.9			27.7			27.1			24.5			26.7			220			320
Total	23.2			24.4			23.3			21.3			22.0			(120)			120
Other real estate owned
Consumer real estate	26.7			24.4			21.8			25.7			24.7			230			200
Commercial	27.8			23.7			12.6			10.8			30.7			410			(290)
Total	27.1			24.3			19.7			21.0			27.0			280			10

(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.

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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,
	2009		2009		2009		2009		2008		2009		2008
60 days or more:
Consumer real estate
First mortgage lien	$	65,074	$	78,281	$	65,022	$	57,121	$	53,482	$	(13,207)	$	11,592
Junior lien	17,942		16,880		13,403		10,141		13,940		1,062		4,002
Total consumer real estate	83,016		95,161		78,425		67,262		67,422		(12,145)		15,594
Consumer other	215		250		207		187		313		(35)		(98)
Total consumer real estate and other	83,231		95,411		78,632		67,449		67,735		(12,180)		15,496
Commercial real estate	22		1,089		2,150		-		225		(1,067)		(203)
Commercial business	46		12		129		9		605		34		(559)
Leasing and equipment finance	11,263		13,664		16,414		12,173		10,905		(2,401)		358
Inventory finance	705		69		-		135		-		636		705
Subtotal(2)	95,267		110,245		97,325		79,766		79,470		(14,978)		15,797
Acquired portfolios	10,862		11,585		1,657		2,504		-		(723)		10,862
Total delinquencies	$	106,129	$	121,830	$	98,982	$	82,270	$	79,470	$	(15,701)	$	26,659

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,
	2009		2009		2009		2009		2008		2009		2008
60 days or more:
Consumer real estate
First mortgage lien	1.34	%	1.62	%	1.34	%	1.18	%	1.11	%	(28)	bps	23	bps
Junior lien	.78		.73		.58		.43		.58		5		20
Total consumer real estate	1.16		1.33		1.09		.93		.93		(17)		23
Consumer other	.42		.44		.34		.34		.51		(2)		(9)
Total consumer real estate and other	1.16		1.32		1.09		.93		.93		(16)		23
Commercial real estate	-		.03		.07		-		.01		(3)		(1)
Commercial business	.01		-		.03		-		.12		1		(11)
Leasing and equipment finance	.44		.53		.65		.49		.44		(9)		-
Inventory finance	.19		.03		-		.13		-		16		19
Subtotal(2)	.69		.81		.72		.60		.60		(12)		9
Acquired portfolios	1.93		2.62		.69		.97		-		(69)		193
Total delinquencies	.74		.87		.72		.60		.60		(13)		14

(1)	Excludes non-accrual loans and leases.
(2)	Excludes delinquencies and non-accrual loans in acquired portfolios as delinquency and non-accrual migration in these portfolios is not expected to result in financial statement losses exceeding the credit reserves netted against the loan balances.

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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,
	2009							2008
	Average					Yields and		Average				Yields and
	Balance			Interest		Rates (1)		Balance		Interest		Rates (1)
ASSETS
Investments and other	$	176,487		$	1,160	2.62	%	$	166,580	$	1,224	2.93	%
U.S. Government sponsored entities:
Mortgage-backed securities	1,497,672			17,707		4.73		1,963,608		25,203		5.13
Debentures	413,647			2,310		2.23		-		-		-
Other securities	68,415			18		.11		2,953		29		3.93
Total securities available for sale	1,979,734			20,035		4.05		1,966,561		25,232		5.13
Loans and leases:
Consumer real estate
Fixed-rate	5,360,601			84,542		6.26		5,496,532		91,522		6.63
Variable-rate	1,914,750			27,182		5.63		1,793,651		27,044		6.00
Consumer - other	32,676			703		8.54		45,495		964		8.44
Total consumer real estate and other	7,308,027			112,427		6.11		7,335,678		119,530		6.48
Commercial real estate
Fixed- and adjustable-rate	2,708,597			41,408		6.07		2,287,226		35,304		6.12
Variable-rate	532,672			5,451		4.06		608,709		7,456		4.87
Total commercial real estate	3,241,269			46,859		5.74		2,895,935		42,760		5.87
Commercial business
Fixed- and adjustable-rate	152,784		��	2,189		5.68		171,687		2,437		5.65
Variable-rate	290,229			2,846		3.89		350,949		3,914		4.44
Total commercial business	443,013			5,035		4.51		522,636		6,351		4.83
Leasing and equipment finance	3,049,093			50,494		6.62		2,389,225		42,701		7.15
Inventory finance	383,291			7,485		7.81		158		4		10.13
Total loans and leases	14,424,693			222,300		6.13		13,143,632		211,346		6.40
Total interest-earning assets	16,580,914			243,495		5.84		15,276,773		237,802		6.20
Other assets	1,194,053							1,130,462
Total assets	$	17,774,967						$	16,407,235
LIABILITIES AND EQUITY
Non-interest bearing deposits:
Retail	$	1,355,543						$	1,345,832
Small business	611,454							593,626
Commercial and custodial	297,223							234,045
Total non-interest bearing deposits	2,264,220							2,173,503
Interest-bearing deposits:
Checking	1,868,911			1,731		.37		1,754,111		2,935		.67
Savings	5,214,318			12,484		.95		2,847,838		13,002		1.82
Money market	671,755			1,288		.76		625,198		2,625		1.67
Subtotal	7,754,984			15,503		.79		5,227,147		18,562		1.41
Certificates of deposit	1,366,871			5,668		1.64		2,448,815		18,800		3.05
Total interest-bearing deposits	9,121,855			21,171		.92		7,675,962		37,362		1.94
Total deposits	11,386,075			21,171		.74		9,849,465		37,362		1.51
Borrowings:
Short-term borrowings	240,981			101		.17		454,202		1,102		.97
Long-term borrowings	4,511,311			52,582		4.63		4,435,730		52,221		4.69
Total borrowings	4,752,292			52,683		4.40		4,889,932		53,323		4.34
Total deposits and borrowings	16,138,367			73,854		1.82		14,739,397		90,685		2.45
Other liabilities	447,597							366,063
Total liabilities	16,585,964							15,105,460
Equity	1,189,003							1,301,775
Total liabilities and
equity	$	17,774,967						$	16,407,235
Net interest income and margin				$	169,641	4.07	%			$	147,117	3.84	%

(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,
	2009						2008
	Average				Yields and		Average				Yields and
	Balance		Interest		Rates (1)		Balance		Interest		Rates (1)
ASSETS
Investments and other	$	375,396	$	4,370	1.16	%	$	155,839	$	5,937	3.81	%
U.S. Government sponsored entities:
Mortgage-backed securities	1,645,544		80,902		4.92		2,100,291		110,502		5.26
Debentures	389,245		8,487		2.18		-		-		-
Other securities	17,617		38		.22		12,674		444		3.50
Total securities available for sale	2,052,406		89,427		4.36		2,112,965		110,946		5.25
Loans and leases:
Consumer real estate
Fixed-rate	5,421,081		348,400		6.43		5,532,198		372,068		6.73
Variable-rate	1,862,267		106,988		5.75		1,714,828		109,115		6.36
Consumer - other	35,849		3,061		8.54		132,890		9,232		6.95
Total consumer real estate and other	7,319,197		458,449		6.26		7,379,916		490,415		6.65
Commercial real estate
Fixed- and adjustable-rate	2,574,818		155,812		6.05		2,127,436		132,014		6.21
Variable-rate	561,881		22,544		4.01		597,071		31,110		5.21
Total commercial real estate	3,136,699		178,356		5.69		2,724,507		163,124		5.99
Commercial business
Fixed- and adjustable-rate	166,745		9,581		5.75		168,554		9,988		5.93
Variable-rate	308,929		10,644		3.45		366,593		18,143		4.95
Total commercial business	475,674		20,225		4.25		535,147		28,131		5.26
Leasing and equipment finance	2,826,835		192,557		6.81		2,265,391		165,838		7.32
Inventory finance	179,990		14,797		8.22		40		4		10.00
Total loans and leases	13,938,395		864,384		6.20		12,905,001		847,512		6.57
Total interest-earning assets	16,366,197		958,181		5.85		15,173,805		964,395		6.36
Other assets	1,157,314						1,158,545
Total assets	$	17,523,511					$	16,332,350
LIABILITIES AND EQUITY
Non-interest bearing deposits:
Retail	$	1,402,442					$	1,408,657
Small business	584,605						583,611
Commercial and custodial	265,681						231,903
Total non-interest bearing deposits	2,252,728						2,224,171
Interest-bearing deposits:
Checking	1,802,694		8,138		.45		1,830,361		12,933		.71
Savings	4,732,316		58,556		1.24		2,812,115		48,601		1.73
Money Market	683,030		7,006		1.03		613,543		10,099		1.65
Subtotal	7,218,040		73,700		1.02		5,256,019		71,633		1.37
Certificates of deposit	1,915,467		48,413		2.53		2,472,357		85,141		3.44
Total interest-bearing deposits	9,133,507		122,113		1.34		7,728,376		156,774		2.03
Total deposits	11,386,235		122,113		1.07		9,952,547		156,774		1.58
Borrowings:
Short-term borrowings	85,228		233		.27		411,763		8,990		2.18
Long-term borrowings	4,373,182		202,829		4.64		4,459,703		204,958		4.60
Total borrowings	4,458,410		203,062		4.55		4,871,466		213,948		4.39
Total deposits and borrowings	15,844,645		325,175		2.05		14,824,013		370,722		2.50
Other liabilities	416,555						359,223
Total liabilities	16,261,200						15,183,236
Equity	1,262,311						1,149,114
Total liabilities and
equity	$	17,523,511					$	16,332,350
Net interest income and margin			$	633,006	3.87	%			$	593,673	3.91	%

(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,
	2009			2009			2009			2009			2008
Interest income:
Loans and leases	$	222,300		$	217,307		$	215,400		$	209,377		$	211,346
Securities available for sale	20,035			20,474			23,217			25,701			25,232
Investments and other	1,160			1,217			1,137			856			1,224
Total interest income	243,495			238,998			239,754			235,934			237,802
Interest expense:
Deposits	21,171			27,512			33,345			40,084			37,362
Borrowings	52,683			49,997			49,946			50,437			53,323
Total interest expense	73,854			77,509			83,291			90,521			90,685
Net interest income	169,641			161,489			156,463			145,413			147,117
Provision for credit losses	77,389			75,544			61,891			43,712			47,050
Net interest income after provision for
credit losses	92,252			85,945			94,572			101,701			100,067
Non-interest income:
Fees and service charges	74,875			77,433			77,536			57,064			67,448
Card revenue	26,813			26,393			26,604			24,960			25,243
ATM revenue	7,006			7,861			7,973			7,598			7,688
Subtotal	108,694			111,687			112,113			89,622			100,379
Leasing and equipment finance	24,408			15,173			16,881			12,651			16,298
Other	2,764			1,197			820			458			130
Fees and other revenue	135,866			128,057			129,814			102,731			116,807
Gains on securities, net	7,283			-			10,556			11,548			8,167
Total non-interest income	143,149			128,057			140,370			114,279			124,974
Non-interest expense:
Compensation and employee benefits	89,374			90,680			90,752			86,190			83,323
Occupancy and equipment	31,099			31,619			31,527			32,047			32,503
Deposit account premiums	9,347			7,472			7,287			6,576			5,659
Advertising and promotions	3,789			4,766			4,134			4,445			4,643
FDIC premiums and assessments	5,288			5,085			13,303			3,795			1,706
Foreclosed real estate and repossessed assets	12,088			8,038			6,125			4,291			6,341
Other	45,028			38,873			39,558			32,840			41,366
Subtotal	196,013			186,533			192,686			170,184			175,541
Operating lease depreciation	10,750			3,734			3,860			4,024			4,269
Total non-interest expense	206,763			190,267			196,546			174,208			179,810
Income before income tax expense	28,638			23,735			38,396			41,772			45,231
Income tax expense	9,385			6,491			14,853			15,125			17,527
Income after income tax expense	19,253			17,244			23,543			26,647			27,704
Income (loss) attributable to non-controlling interest	(203)			(207)			-			-			-
Net income	19,456			17,451			23,543			26,647			27,704
Preferred stock dividends	-			-			1,193			5,185			2,540
Non-cash deemed preferred stock dividend	-			-			12,025			-			-
Net income available to common stockholders	$	19,456		$	17,451		$	10,325		$	21,462		$	25,164
Net income per common share:
Basic	$	.15		$	.14		$	.08		$	.17		$	.20
Diluted	.15			.14			.08			.17			.20
Dividends declared per common share	$	.05		$	.05		$	.05		$	.25		$	.25
Financial Ratios:
Return on average assets (1)	.43		%	.39		%	.53		%	.62		%	.68		%
Return on average common equity (1)	6.57			6.03			3.61			7.58			9.00
Net interest margin (1)	4.07			3.92			3.80			3.66			3.84
Average common equity to average assets	6.69			6.61			6.48			6.61			6.81

(1)  Annualized

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24

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS

(In thousands)

(Unaudited)

	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,
	2009		2009		2009		2009		2008
ASSETS
Cash and due from banks	$	297,758	$	499,696	$	564,853	$	609,168	$	297,252
Investments	158,764		157,590		166,824		165,243		166,580
U.S. Government sponsored entities:
Mortgage-backed securities	1,497,672		1,432,670		1,656,767		2,002,962		1,963,608
Debentures	413,647		600,098		527,562		8,908		-
Other securities	68,415		489		498		506		2,953
Total securities available for sale	1,979,734		2,033,257		2,184,827		2,012,376		1,966,561
Loans and leases:
Consumer real estate
Fixed-rate	5,360,601		5,394,712		5,453,117		5,477,467		5,496,533
Variable-rate	1,914,750		1,873,913		1,840,983		1,818,232		1,793,650
Consumer - other	32,676		35,015		36,255		39,539		45,495
Total consumer real estate and other	7,308,027		7,303,640		7,330,355		7,335,238		7,335,678
Commercial real estate
Fixed- and adjustable-rate	2,708,597		2,645,261		2,531,026		2,410,335		2,287,226
Variable-rate	532,672		548,425		579,004		588,181		608,709
Total commercial real estate	3,241,269		3,193,686		3,110,030		2,998,516		2,895,935
Commercial business
Fixed- and adjustable-rate	152,784		166,008		173,000		175,445		171,687
Variable-rate	290,229		311,033		310,493		324,311		350,949
Total commercial business	443,013		477,041		483,493		499,756		522,636
Leasing and equipment finance	3,049,093		2,811,165		2,809,787		2,632,893		2,389,225
Inventory finance	383,291		185,914		118,317		28,475		158
Total loans and leases	14,424,693		13,971,446		13,851,982		13,494,878		13,143,632
Allowance for loan and lease losses	(218,967)		(200,684)		(181,895)		(174,364)		(160,662)
Net loans and leases	14,205,726		13,770,762		13,670,087		13,320,514		12,982,970
Premises and equipment	449,738		449,625		449,622		450,128		447,249
Goodwill	152,599		152,599		152,599		152,599		152,599
Other assets	530,648		462,996		447,105		439,692		394,024
Total assets	$	17,774,967	$	17,526,525	$	17,635,917	$	17,149,720	$	16,407,235
LIABILITIES AND EQUITY
Non-interest-bearing deposits:
Retail	$	1,355,543	$	1,380,591	$	1,446,215	$	1,428,453	$	1,345,832
Small business	611,454		591,451		571,676		563,236		593,626
Commercial and custodial	297,223		277,135		260,079		227,470		234,045
Total non-interest bearing deposits	2,264,220		2,249,177		2,277,970		2,219,159		2,173,503
Interest-bearing deposits:
Checking	1,868,911		1,800,583		1,792,493		1,747,480		1,754,111
Savings	5,214,318		5,071,509		4,823,897		3,800,275		2,847,838
Money Market	671,755		723,098		690,201		646,347		625,198
Subtotal	7,754,984		7,595,190		7,306,591		6,194,102		5,227,147
Certificates of deposit	1,366,871		1,757,884		2,087,490		2,463,405		2,448,815
Total interest-bearing deposits	9,121,855		9,353,074		9,394,081		8,657,507		7,675,962
Total deposits	11,386,075		11,602,251		11,672,051		10,876,666		9,849,465
Borrowings:
Short-term borrowings	240,981		25,267		29,027		44,131		454,202
Long-term borrowings	4,511,311		4,306,009		4,307,777		4,366,782		4,435,730
Total borrowings	4,752,292		4,331,276		4,336,804		4,410,913		4,889,932
Accrued expenses and other liabilities	447,597		435,215		403,561		380,202		366,063
Total liabilities	16,585,964		16,368,742		16,412,416		15,667,781		15,105,460
Equity:
Preferred stock	-		-		80,540		348,727		183,981
Common stock	1,304		1,304		1,304		1,305		1,309
Additional paid-in capital	302,209		305,199		301,937		319,872		328,078
Retained earnings	938,504		926,137		922,856		914,972		924,456
Accumulated other comprehensive loss	1,040		(7,490)		(5,097)		(5,745)		(13,896)
Treasury stock at cost and other	(58,110)		(67,641)		(78,039)		(97,192)		(122,153)
Total stockholders equity	1,184,947		1,157,509		1,223,501		1,481,939		1,301,775
Non-controlling interest in subsidiaries	4,056		274		-		-		-
Total equity	1,189,003		1,157,783		1,223,501		1,481,939		1,301,775
Total liabilities and equity	$	17,774,967	$	17,526,525	$	17,635,917	$	17,149,720	$	16,407,235

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25

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY YIELDS AND RATES (1)

(Unaudited)

	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,
	2009		2009		2009		2009		2008
ASSETS
Investments and other	2.62	%	1.24	%	1.00	%	.71	%	2.93	%
U.S. Government sponsored entities:
Mortgage-backed securities	4.73		4.80		4.91		5.12		5.13
Debentures	2.23		2.19		2.17		1.57		-
Other securities	.11		4.91		5.63		5.58		3.93
Total securities available for sale	4.05		4.03		4.25		5.11		5.13
Loans and leases:
Consumer real estate
Fixed-rate	6.26		6.36		6.52		6.57		6.63
Variable-rate	5.63		5.72		5.79		5.85		6.00
Consumer - other	8.54		8.57		8.63		8.43		8.44
Total consumer real estate and other	6.11		6.21		6.34		6.40		6.48
Commercial real estate
Fixed- and adjustable-rate	6.07		6.03		6.00		6.11		6.12
Variable-rate	4.06		4.16		3.95		3.89		4.87
Total commercial real estate	5.74		5.71		5.62		5.67		5.87
Commercial business
Fixed- and adjustable-rate	5.68		5.68		5.71		5.89		5.65
Variable-rate	3.89		3.67		3.27		2.98		4.44
Total commercial business	4.51		4.37		4.15		4.01		4.83
Leasing and equipment finance	6.62		6.78		6.89		7.00		7.15
Inventory finance	7.81		9.10		8.35		8.64		10.13
Total loans and leases	6.13		6.18		6.23		6.27		6.40
Total interest-earning assets	5.84		5.80		5.83		5.96		6.20
LIABILITIES
Interest-bearing deposits:
Checking	.37		.39		.44		.62		.67
Savings	.95		1.07		1.29		1.81		1.82
Money market	.76		.90		1.03		1.45		1.67
Subtotal	.79		.89		1.05		1.44		1.41
Certificates of deposit	1.64		2.36		2.72		2.98		3.05
Total interest-bearing deposits	.92		1.17		1.42		1.88		1.94
Total deposits	.74		.94		1.15		1.49		1.51
Borrowings:
Short-term borrowings	.17		.22		.33		.86		.97
Long-term borrowings	4.63		4.61		4.65		4.67		4.69
Total borrowings	4.40		4.58		4.62		4.63		4.34
Total interest-bearing liabilities	2.11		2.25		2.43		2.81		2.86
Net interest margin	4.07	%	3.92	%	3.80	%	3.66	%	3.84	%

(1)  Annualized

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26

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (1)

(Dollars in thousands)

(Unaudited)

	At Dec. 31,			At Dec. 31,
	2009			2008
Computation of total equity to total assets:
Total equity	$	1,179,755		$	1,493,776
Total assets	$	17,885,175		$	16,740,357
Total equity to total assets	6.60		%	8.92		%
Computation of tangible realized common equity to tangible assets:
Total equity	$	1,179,755		$	1,493,776
Less: Non-controlling interest in subsidiaries	4,393			-
Total TCF stockholders’ equity	1,175,362			1,493,776
Less:
Preferred stock	-			348,437
Goodwill	152,599			152,599
Other intangibles	1,405			-
Add:
Accumulated other comprehensive loss	18,545			3,692
Tangible realized common equity	$	1,039,903		$	996,432
Total assets	$	17,885,175		$	16,740,357
Less:
Goodwill	152,599			152,599
Other intangibles	1,405			-
Tangible assets	$	17,731,171		$	16,587,758
Tangible realized common equity to tangible assets	5.86		%	6.01		%

(1) In contrast to GAAP-basis measures, tangible realized common equity excludes the effect of preferred stock, goodwill, other intangibles and accumulated other comprehensive income (loss). Management reviews tangible realized common equity as an ongoing measure and has included this information because of current interest in the industry. The methodology for calculating tangible realized common equity may vary between companies.

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