TCF Financial 8K TCF Reports Quarterly Net Income of $34.1 Million, or 21 Cents Per Share | SEC 23 Jul 13

Exhibit 99.1

NEWS RELEASE

CONTACT: Jason Korstange

(952) 745-2755

tcfbank.com

FOR IMMEDIATE RELEASE

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

TCF Reports Quarterly Net Income of $34.1 Million, or 21 Cents Per Share

SECOND QUARTER HIGHLIGHTS

- Total revenue of $301.8 million, up 3.4 percent from the first quarter of 2013

- Pre-tax pre-provision profit of $93.3 million, up 6.3 percent from the first quarter of 2013

- Net interest margin maintained at 4.72 percent annualized

- Provision for credit losses of $32.6 million, down 15.1 percent from the first quarter of 2013

- Non-accrual loans and leases and other real estate owned decreased $70.4 million, or 17 percent, from the first quarter of 2013

- Announced common and preferred stock dividend payments payable August 30, 2013 and September 3, 2013, respectively

Summary of Financial Results													Table 1
(Dollars in thousands, except per-share data)										Percent Change
	2Q			1Q			2Q			2Q13 vs		2Q13 vs		YTD			YTD			Percent
	2013			2013			2012			1Q13		2Q12		2013			2012 (1)			Change
Net income (loss)	$	34,057		$	25,450		$	31,531		33.8	%	8.0	%	$	59,507		$	(251,363	)	N.M.%
Net interest income	202,044			199,091			198,224			1.5		1.9		401,135			378,397			6.0
Pre-tax pre-provision profit(2)	93,311			87,742			108,118			6.3		(13.7	)	181,053			178,696			1.3
Diluted earnings (loss) per common share	.21			.16			.20			31.3		5.0		.37			(1.58		)	N.M.

Financial Ratios(3)
Return on average assets	.90		%	.70		%	.76		%					.80		%	(2.71		)%
Return on average common equity	8.39			6.36			8.13							7.39			(29.84		)
Net interest margin	4.72			4.72			4.86							4.72			4.49
Net charge-offs as a percentage of average loans and leases	.70			1.06			1.18							.88			1.12

(1) Includes a net, after-tax charge of $295.8 million, or $1.87 per common share, related to the balance sheet repositioning.
(2) Pre-tax pre-provision profit (“PTPP”) is calculated as total revenues less non-interest expense. Year-to-date 2012 PTPP excludes the non-recurring net loss of $473.8 million related to the balance sheet repositioning completed in the first quarter of 2012.
(3) Annualized.
N.M. Not Meaningful.

WAYZATA, MN, July 23, 2013 – TCF Financial Corporation (“TCF” or the “Company”) (NYSE: TCB) today reported net income for the second quarter of 2013 of $34.1 million, compared with net income of $31.5 million for the second quarter of 2012 (inclusive of a net after-tax gain of $8.2 million from the sale of Visa® Class B stock), and compared with net income of $25.5 million for the first quarter of 2013. Diluted earnings per common share was 21 cents for the second quarter of 2013, compared with diluted earnings per common share of 20 cents for the second quarter of 2012 (inclusive of a net after-tax gain of 5 cents per common share related to the sale of Visa Class B stock) and diluted earnings per common share of 16 cents for the first quarter of 2013.

TCF reported net income for the first six months of 2013 of $59.5 million, compared with a net loss of $251.4 million for the same period in 2012 (inclusive of a net after-tax charge of $295.8 million, or $1.87 per common share, related to a balance sheet repositioning involving certain investments and borrowings in the first quarter of 2012 and a net after-tax gain of $8.2 million, or 5 cents per common share, related to the sale of Visa® Class B stock in the second quarter of 2012). Diluted earnings per common share was 37 cents for the first six months of 2013, compared with a diluted loss per common share of $1.58 for the same period in 2012 (earnings per common share of 23 cents before the balance sheet repositioning charge and the gain related to the sale of Visa® Class B stock).

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Chairman’s Statement

“During the second quarter, TCF experienced solid increases throughout its multiple core revenue sources and another quarter of solid improvement in credit trends,” said William A. Cooper, Chairman and Chief Executive Officer. “Over the last three quarters, TCF has seen continued improvement in our credit metrics, particularly in the consumer real estate portfolio where home values have risen and consumer confidence has strengthened, and we have maintained strong performance in our national businesses.

“TCF made strategic investments in 2012 to position the Company for 2013 and beyond. The Company has made good progress in the first half of 2013 executing on these strategic initiatives, including disciplined loan and lease growth, diversifying our revenue sources, improving our credit performance, and expanding our deposit account base.”

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Revenue

Total Revenue																				Table 2
										Percent Change
	2Q			1Q			2Q			2Q13 vs		2Q13 vs		YTD			YTD			Percent
(Dollars in thousands)	2013			2013			2012			1Q13		2Q12		2013			2012			Change
Net interest income	$	202,044		$	199,091		$	198,224		1.5	%	1.9	%	$	401,135		$	378,397		6.0	%
Fees and other revenue:
Fees and service charges	41,572			39,323			48,090			5.7		(13.6	)	80,895			89,946			(10.1	)
Card revenue	13,270			12,417			13,530			6.9		(1.9	)	25,687			26,737			(3.9	)
ATM revenue	5,828			5,505			6,276			5.9		(7.1	)	11,333			12,475			(9.2	)
Total banking fees	60,670			57,245			67,896			6.0		(10.6	)	117,915			129,158			(8.7	)
Leasing and equipment finance	22,874			16,460			23,207			39.0		(1.4	)	39,334			46,074			(14.6	)
Gains on sales of auto loans	8,135			7,146			5,496			13.8		48.0		15,281			7,746			97.3
Gains on sales of consumer real estate loans	4,069			8,126			-			(49.9	)	N.M	.	12,195			-			N.M	.
Other	4,035			3,726			3,168			8.3		27.4		7,761			5,523			40.5
Total fees and other revenue	99,783			92,703			99,767			7.6		-		192,486			188,501			2.1
Subtotal	301,827			291,794			297,991			3.4		1.3		593,621			566,898			4.7
Gains on securities, net	-			-			13,116			N.M	.	(100.0	)	-			89,727			(100.0	)
Total revenue	$	301,827		$	291,794		$	311,107		3.4		(3.0	)	$	593,621		$	656,625		(9.6	)
Net interest margin (1)	4.72		%	4.72		%	4.86		%					4.72		%	4.49		%
Fees and other revenue as a % of total revenue	33.06			31.77			32.07							32.43			28.71

N.M. Not meaningful.
(1) Annualized.

Net Interest Income

· Net interest income for the second quarter of 2013 increased $3.8 million, or 1.9 percent, compared with the second quarter of 2012. This increase was due to higher average loan balances primarily from the auto finance and inventory finance portfolios as a result of continued growth in those businesses, partially offset by lower average balances of consumer real estate loans due to various sales that occurred in the second half of 2012 and the first half of 2013. The increase was also due to a reduced cost of borrowings from the redemption of trust preferred securities in July 2012.

· Net interest income for the second quarter of 2013 increased $3 million, or 1.5 percent, compared with the first quarter of 2013. The increase was primarily due to higher average loan balances primarily from continued growth in the auto finance portfolio and a seasonally high inventory finance portfolio. These increases were partially offset by reduced interest income from lower average balances of consumer real estate loans as a result of various loan sales that occurred during the second quarter of 2013 and the run-off of first mortgages, compared with the first quarter of 2013.

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· Net interest margin in the second quarter of 2013 was 4.72 percent, compared with 4.86 percent in the second quarter of 2012 and remained unchanged from the first quarter of 2013. The decrease from the second quarter of 2012 was primarily due to increased cash held at the Federal Reserve and lower yields as new originations in our lending business continued to be impacted by the low interest rate environment. These decreases were partially offset by the reduced cost of borrowings due to the redemption of trust preferred securities in July 2012.

Non-interest Income

· Fees and service charges in the second quarter of 2013 were $41.6 million, down $6.5 million, or 13.6 percent, from the second quarter of 2012 and up $2.2 million, or 5.7 percent, from the first quarter of 2013. The decrease from the second quarter of 2012 was due to the elimination of the monthly maintenance fee on deposit products through the reintroduction of free checking, partially offset by a higher account base. The increase from the first quarter of 2013 was primarily due to higher seasonal transaction activity during the second quarter of 2013, as well as growth in the account base for the fourth consecutive quarter driven by the reintroduction of free checking.

· Leasing and equipment finance revenue was $22.9 million during the second quarter of 2013, up $6.4 million, or 39 percent, from the first quarter of 2013. The increase was primarily due to higher sales-type lease revenue on the leasing and equipment finance portfolio as a result of customer-driven events.

· TCF sold $196.9 million, $144.1 million and $179.8 million of auto loans during the second quarters of 2013 and 2012, and the first quarter of 2013, respectively, resulting in gains in the same respective periods.

· TCF sold $139.2 million and $279.2 million of consumer real estate loans during the second quarter of 2013 and the first quarter of 2013, respectively, resulting in gains in the same respective periods. There were no sales of consumer real estate loans during the second quarter of 2012.

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Loans and Leases

Period-End and Average Loans and Leases															Table 3
							Percent Change
(Dollars in thousands)	2Q		1Q		2Q		2Q13 vs		2Q13 vs		YTD		YTD		Percent
	2013		2013		2012		1Q13		2Q12		2013		2012		Change
Period-End:
Consumer real estate	$	6,356,426	$	6,418,666	$	6,811,784	(1.0	)%	(6.7	)%
Commercial	3,350,334		3,334,716		3,523,070		.5		(4.9	)
Leasing and equipment finance	3,251,703		3,185,234		3,151,105		2.1		3.2
Inventory finance	1,713,528		1,931,363		1,457,263		(11.3	)	17.6
Auto finance	882,202		719,666		262,188		22.6		N.M	.
Other	25,099		23,701		29,094		5.9		(13.7	)
Total	$	15,579,292	$	15,613,346	$	15,234,504	(.2	)	2.3

Average:
Consumer real estate	$	6,430,685	$	6,556,426	$	6,793,415	(1.9	)	(5.3	)	$	6,493,208	$	6,819,239	(4.8	)%
Commercial	3,336,406		3,345,780		3,492,049		(.3	)	(4.5	)	3,341,067		3,474,885		(3.9	)
Leasing and equipment finance	3,236,799		3,199,499		3,145,914		1.2		2.9		3,218,252		3,137,122		2.6
Inventory finance	1,875,810		1,686,364		1,571,004		11.2		19.4		1,780,058		1,353,469		31.5
Auto finance	823,102		670,096		223,893		22.8		N.M	.	747,022		154,728		N.M	.
Other	13,060		13,641		17,647		(4.3	)	(26.0	)	13,348		17,612		(24.2	)
Total	$	15,715,862	$	15,471,806	$	15,243,922	1.6		3.1		$	15,592,955	$	14,957,055	4.3

N.M. Not meaningful.

· Loans and leases were $15.6 billion at June 30, 2013, an increase of $344.8 million, or 2.3 percent, compared with June 30, 2012. Quarterly average loans and leases were $15.7 billion for the second quarter of 2013, an increase of $471.9 million, or 3.1 percent, compared with the second quarter of 2012. The increases in period-end and average loans and leases were primarily due to the continued growth of auto finance as TCF continues to expand that business, as well as an increase in the inventory finance portfolio. These increases were partially offset by decreases in consumer real estate loans driven by ongoing sales and a decline in originations of first mortgages.

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Credit Quality


Credit Trends	Table 4


(Dollars in millions)
(At or for the Quarter Ended)

(1) Excludes acquired portfolios and non-accrual loans and leases.
(2) Excludes $81.5 million, $122.1 million, $117.7 million and $103.2 million of non-accrual assets at June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively, associated with the implementation of clarifying bankruptcy-related regulatory guidance in the third quarter of 2012.

· Over 60-day delinquencies improved for the sixth consecutive quarter. The over 60-day delinquency rate excluding acquired portfolios and non-accrual loans and leases at June 30, 2013 was .52 percent, down from .53 percent at March 31, 2013 and .74 percent at June 30, 2012. The decrease from June 30, 2012 was primarily a result of reduced delinquencies in the consumer real estate portfolio.

· Net charge-offs decreased $13.3 million from the first quarter of 2013 and decreased $17.2 million from the second quarter of 2012, respectively, primarily due to improved credit quality in the consumer real estate and commercial portfolios.

· Non-accrual loans and leases were $278.5 million at June 30, 2013, a decrease of $64.9 million, or 18.9 percent, from March 31, 2013 and a decrease of $46 million, or 14.2 percent, from June 30, 2012. The reduction in the non-accrual consumer real estate balance from March 31, 2013 was primarily due to the sale of $40.5 million of loans during the second quarter of 2013. The decrease from March 31, 2013 and

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June 30, 2012 was also due to improved credit quality in the commercial and consumer real estate portfolios resulting in fewer commercial and consumer loans entering non-accrual status.

· Other real estate owned was $66.2 million at June 30, 2013, a decrease of $5.5 million from March 31, 2013, and a decrease of $59.6 million from June 30, 2012. The decrease from June 30, 2012 was primarily due to a portfolio sale of 184 consumer properties during the first quarter of 2013. Additionally, the decrease from both periods was due to a decrease in the number of consumer real estate loans transferred from non-accrual status.

· Provision for credit losses was $32.6 million for the second quarter of 2013, a decrease of $5.8 million from the first quarter of 2013 and a decrease of $21.5 million from the second quarter of 2012. The decrease from the first quarter of 2013 was primarily due to decreased net charge-offs in the consumer real estate portfolio. The decrease in provision from the second quarter of 2012 was primarily due to decreased net charge-offs in the consumer real estate and commercial portfolios.

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Deposits

Average Deposits															Table 5
							Percent Change
(Dollars in thousands)	2Q		1Q		2Q		2Q13 vs		2Q13 vs		YTD		YTD		Percent
	2013		2013		2012		1Q13		2Q12		2013		2012		Change

Checking	$	4,884,433	$	4,784,945	$	4,636,701	2.1	%	5.3	%	$	4,834,964	$	4,600,882	5.1	%
Savings	6,082,200		6,114,219		6,053,264		(.5	)	.5		6,098,121		5,979,191		2.0
Money market	791,859		815,374		748,016		(2.9	)	5.9		803,551		705,255		13.9
Subtotal	11,758,492		11,714,538		11,437,981		.4		2.8		11,736,636		11,285,328		4.0
Certificates	2,360,881		2,323,267		1,608,653		1.6		46.8		2,342,178		1,372,164		70.7
Total average deposits	$	14,119,373	$	14,037,805	$	13,046,634	.6		8.2		$	14,078,814	$	12,657,492	11.2

Average interest rate on deposits (1)	.25%		.28%		.31%						.27%		.31%

(1) Annualized.

· Total average deposits for the second quarter of 2013 increased $1.1 billion, or 8.2 percent, from the second quarter of 2012 and increased $81.6 million, or .6 percent, from the first quarter of 2013, primarily due to special programs for certificates of deposit and the reintroduction of free checking.

· The average interest rate on deposits in the second quarter of 2013 was .25 percent, down six basis points from the second quarter of 2012 and down three basis points from the first quarter of 2013, primarily due to declines in average interest rates on various savings accounts.

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Non-interest Expense

Non-interest Expense																		Table 6
									Percent Change
(Dollars in thousands)	2Q			1Q			2Q		2Q13 vs		2Q13 vs		YTD			YTD		Percent
	2013			2013			2012		1Q13		2Q12		2013			2012		Change
Compensation and employee benefits	$	105,537		$	104,229		$	97,787	1.3	%	7.9	%	$	209,766		$	193,754	8.3	%
Occupancy and equipment	33,062			32,875			32,731		.6		1.0		65,937			64,977		1.5
FDIC insurance	8,362			7,710			8,469		8.5		(1.3	)	16,072			14,855		8.2
Operating lease depreciation	6,150			5,635			6,417		9.1		(4.2	)	11,785			13,148		(10.4	)
Advertising and marketing	5,532			5,732			5,404		(3.5	)	2.4		11,264			8,021		40.4
Deposit account premiums	600			602			1,690		(.3	)	(64.5	)	1,202			7,661		(84.3	)
Other	41,946			37,939			36,956		10.6		13.5		79,885			74,252		7.6
Core operating expenses	201,189			194,722			189,454		3.3		6.2		395,911			376,668		5.1
Loss on termination of debt	-			-			-		N.M	.	N.M	.	-			550,735		(100.0	)
Foreclosed real estate and repossessed assets, net	7,555			10,167			12,059		(25.7	)	(37.3	)	17,722			23,106		(23.3	)
Other credit costs, net	(228		)	(837		)	1,476		72.8		(115.4	)	(1,065		)	1,188		(189.6	)
Total non-interest expense	$	208,516		$	204,052		$	202,989	2.2		2.7		$	412,568		$	951,697	(56.6	)

N.M. Not meaningful.

· Compensation and employee benefits expense for the second quarter of 2013 increased $7.8 million, or 7.9 percent, from the second quarter of 2012 due to increased staff levels to support the growth of auto finance and expenses related to higher commissions based on production results and incentives based on performance.

· Foreclosed real estate and repossessed assets expense decreased $4.5 million, or 37.3 percent, from the second quarter of 2012 and decreased $2.6 million, or 25.7 percent, from the first quarter of 2013. The decrease from the second quarter of 2012 was driven by reduced expenses related to fewer consumer real estate and commercial foreclosed properties. The change from the first quarter of 2013 was driven by an acceleration of expense related to a portfolio sale of consumer properties during the first quarter of 2013.

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Capital

Capital Information									Table 7
At period end
(Dollars in thousands, except per-share data)		2Q					4Q
		2013					2012
Total equity	$	1,906,181				$	1,876,643
Book value per common share	$	9.89				$	9.79
Tangible realized common equity to tangible assets (1)		7.77	%				7.52	%

Risk-based capital (2)
Tier 1	$	1,695,092		11.27	%	$	1,633,336			11.09	%
Total		2,034,312		13.53			2,007,835			13.63

Tier 1 leverage capital	$	1,695,092		9.34	%	$	1,633,336			9.21	%

Tier 1 common capital (3)	$	1,415,190		9.41	%	$	1,356,826			9.21	%


(1) Excludes the impact of goodwill, other intangibles and accumulated other comprehensive (loss) income (see “Reconciliation of GAAP to Non-GAAP Financial Measures” table).
(2) The Company’s capital ratios continue to be in excess of “well-capitalized” regulatory benchmarks.
(3) Excludes the effect of preferred shares and qualifying non-controlling interest in subsidiaries (see “Reconciliation of GAAP to Non-GAAP Financial Measures” table).

· On July 22, 2013, the Board of Directors of TCF declared a regular quarterly cash dividend of 5 cents per common share payable on August 30, 2013, to stockholders of record at the close of business on August 15, 2013. TCF also declared dividends on the 7.50% Series A and 6.45% Series B Non-Cumulative Perpetual Preferred Stock, both payable on September 3, 2013, to stockholders of record at the close of business on August 15, 2013.

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Webcast Information

A live webcast of TCF’s conference call to discuss the second quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on July 23, 2013 at 8:00 a.m. CT. A slide presentation for the call will be available on the website prior to the call. Additionally, the webcast will be 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, investor presentations and SEC filings.

TCF is a Wayzata, Minnesota-based national bank holding company with $18.4 billion in total assets at June 30, 2013. TCF has over 425 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and equipment finance business in all 50 states, commercial inventory finance business in the U.S. and Canada, and indirect auto finance business in over 40 states. For more information about TCF, please visit http://ir.tcfbank.com.

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

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

Certain factors could cause the Company’s future results to differ materially from those expressed or implied in any forward-looking statements contained in this earnings release. These factors include the factors discussed in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 under the heading “Risk Factors,” the factors discussed below and any other cautionary statements, written or oral, which may be made or referred to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

Adverse Economic or Business Conditions; Competitive Conditions; Credit and Other Risks. Deterioration in general economic and banking industry conditions, including defaults, anticipated defaults or rating agency downgrades of sovereign debt (including debt of the U.S.), or continued high rates of or increases in unemployment in TCF’s primary banking markets; adverse economic, business and competitive developments such as shrinking interest margins, reduced demand for financial services and loan and lease products, deposit outflows, deposit account attrition or an inability to increase the number of deposit accounts; customers completing financial transactions without using a bank; adverse changes in credit quality and other risks posed by TCF’s loan, lease, investment and securities available for sale portfolios, including declines in commercial or residential real estate values, changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements, or the inability of home equity line borrowers to make increased payments caused by increased interest rates or amortization of principal; interest rate risks resulting from fluctuations in prevailing interest rates or other factors that result in a mismatch between yields earned on TCF’s interest-earning assets and the rates paid on its deposits and borrowings; foreign currency exchange risks; counterparty risk, including the risk of defaults by our counterparties or diminished availability of counterparties who satisfy our credit quality requirements; decreases in demand for the types of equipment that TCF leases or finances; the effect of any negative publicity.

Legislative and Regulatory Requirements. New consumer protection and supervisory requirements and regulations, including those resulting from action by the Consumer Financial Protection Bureau and changes in the scope of Federal preemption of state laws that could be applied to national banks; the imposition of requirements with an adverse impact relating to TCF’s lending, loan collection and other business activities as a result of the Dodd-Frank Act, or other legislative or regulatory developments such as mortgage foreclosure moratorium laws or imposition of underwriting or other limitations that impact the ability to use certain variable-rate products; 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; deficiencies in TCF’s compliance under the Bank Secrecy Act in past or future periods, which may result in regulatory enforcement action including monetary penalties; increased health care costs resulting from Federal health care reform legislation; adverse regulatory examinations and resulting enforcement actions or other adverse consequences such as increased capital requirements or higher deposit insurance assessments; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity.

Earnings/Capital Risks and Constraints, Liquidity Risks. Limitations on TCF’s ability to pay dividends or to increase dividends because of financial performance deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to adverse conditions in the banking industry, the economic impact on banks of the Dodd-Frank Act and other regulatory reform legislation; the impact of financial regulatory reform, including additional capital, leverage, liquidity and risk management requirements or changes in the composition of qualifying regulatory capital (including those resulting from U.S. implementation of Basel III requirements); adverse changes in securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund

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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; costs associated with new regulatory requirements or interpretive guidance relating to liquidity; uncertainties relating to regulatory requirements or customer opt-in preferences with respect to overdraft fees on point of sale and ATM transactions, which may have an adverse impact on TCF’s fee revenue; uncertainties relating to future retail deposit account changes, including limitations on TCF’s ability to predict customer behavior and the impact on TCF’s fee revenues.

Supermarket Branching Risk; Growth Risks. Adverse developments affecting TCF’s supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches; slower than anticipated growth in existing or acquired businesses; inability to successfully execute on TCF’s growth strategy through acquisitions or cross-selling opportunities; failure to expand or diversify TCF’s balance sheet through programs or new opportunities; failure to successfully attract and retain new customers, including the failure to attract and retain manufacturers and dealers to expand the inventory finance business; failure to effectuate, and risks of claims related to, sales and securitizations of loans; risks related to new product additions and addition of distribution channels (or entry into new markets) for existing products.

Technological and Operational Matters. Technological or operational difficulties, loss or theft of information, cyber-attacks and other security breaches, counterparty failures and the possibility that deposit account losses (fraudulent checks, etc.) may increase; failure to keep pace with technological change.

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

Accounting, Audit, Tax and Insurance Matters. Changes in accounting standards or interpretations of existing standards; federal or state monetary, fiscal or tax policies, including adoption of state legislation that would increase state taxes; ineffective internal controls; adverse state or Federal tax assessments or findings in tax audits; lack of or inadequate insurance coverage for claims against TCF; potential for claims and legal action related to TCF’s fiduciary responsibilities.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

Three Months Ended June 30,

Change

2013

2012

Interest income:

Loans and leases

206,675

208,766

(2,091)

(1.0

Securities available for sale

4,637

5,816

(1,179)

(20.3

)

Investments and other

6,296

3,633

2,663

73.3

Total interest income

217,608

218,215

(607)

(.3

)

Interest expense:

Deposits

8,851

10,197

(1,346)

(13.2

)

Borrowings

6,713

9,794

(3,081)

(31.5

)

Total interest expense

15,564

19,991

(4,427)

(22.1

)

Net interest income

202,044

198,224

3,820

1.9

Provision for credit losses

32,591

54,106

(21,515)

(39.8

)

Net interest income after provision for credit losses

169,453

144,118

25,335

17.6

Non-interest income:

Fees and service charges

41,572

48,090

(6,518)

(13.6

)

Card revenue

13,270

13,530

(260)

(1.9

)

ATM revenue

5,828

6,276

(448)

(7.1

)

Subtotal

60,670

67,896

(7,226)

(10.6

)

Leasing and equipment finance

22,874

23,207

(333)

(1.4

)

Gain on sales of auto loans

8,135

5,496

2,639

48.0

Gain on sale of consumer real estate loans

4,069

N.M

Other

4,035

3,168

867

27.4

Fees and other revenue

99,783

99,767

Gains on securities, net

13,116

(13,116)

(100.0

)

Total non-interest income

99,783

112,883

(13,100)

(11.6

)

Non-interest expense:

Compensation and employee benefits

105,537

97,787

7,750

7.9

Occupancy and equipment

33,062

32,731

331

1.0

FDIC insurance

8,362

8,469

(107)

(1.3

)

Operating lease depreciation

6,150

6,417

(267)

(4.2

)

Advertising and marketing

5,532

5,404

128

2.4

Deposit account premiums

600

1,690

(1,090)

(64.5

)

Other

41,946

36,956

4,990

13.5

Subtotal

201,189

189,454

11,735

6.2

Foreclosed real estate and repossessed assets, net

7,555

12,059

(4,504)

(37.3

)

Other credit costs, net

(228)

1,476

(1,704)

N.M

Total non-interest expense

208,516

202,989

5,527

2.7

Income before income tax expense

60,720

54,012

6,708

12.4

Income tax expense

19,444

20,542

(1,098)

(5.3

)

Income after income tax expense

41,276

33,470

7,806

23.3

Income attributable to non-controlling interest

2,372

1,939

433

22.3

Net income attributable to TCF Financial Corporation

38,904

31,531

7,373

23.4

Preferred stock dividends

4,847

N.M

Net income available to common stockholders

34,057

31,531

2,526

8.0

Net income per common share:

Basic

.21

.20

.01

5.0

Diluted

.21

.20

.01

5.0

Dividends declared per common share

.05

Average common and common equivalent shares outstanding (in thousands):

Basic

160,895

159,113

1,782

1.1

Diluted

161,749

159,539

2,210

1.4

N.M. Not meaningful.

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

Six Months Ended June 30,

Change

2013

2012

Interest income:

Loans and leases

411,580

414,750

(3,170)

(.8

Securities available for sale

9,432

24,928

(15,496)

(62.2

)

Investments and other

12,146

6,066

6,080

100.2

Total interest income

433,158

445,744

(12,586)

(2.8

)

Interest expense:

Deposits

18,532

19,258

(726)

(3.8

)

Borrowings

13,491

48,089

(34,598)

(71.9

)

Total interest expense

32,023

67,347

(35,324)

(52.5

)

Net interest income

401,135

378,397

22,738

6.0

Provision for credit losses

70,974

102,648

(31,674)

(30.9

)

Net interest income after provision for credit losses

330,161

275,749

54,412

19.7

Non-interest income:

Fees and service charges

80,895

89,946

(9,051)

(10.1

)

Card revenue

25,687

26,737

(1,050)

(3.9

)

ATM revenue

11,333

12,475

(1,142)

(9.2

)

Subtotal

117,915

129,158

(11,243)

(8.7

)

Leasing and equipment finance

39,334

46,074

(6,740)

(14.6

)

Gain on sales of auto loans

15,281

7,746

7,535

97.3

Gain on sale of consumer real estate loans

12,195

N.M

Other

7,761

5,523

2,238

40.5

Fees and other revenue

192,486

188,501

3,985

2.1

Gains on securities, net

89,727

(89,727)

(100.0

)

Total non-interest income

192,486

278,228

(85,742)

(30.8

)

Non-interest expense:

Compensation and employee benefits

209,766

193,754

16,012

8.3

Occupancy and equipment

65,937

64,977

960

1.5

FDIC insurance

16,072

14,855

1,217

8.2

Operating lease depreciation

11,785

13,148

(1,363)

(10.4

)

Advertising and marketing

11,264

8,021

3,243

40.4

Deposit account premiums

1,202

7,661

(6,459)

(84.3

)

Other

79,885

74,252

5,633

7.6

Subtotal

395,911

376,668

19,243

5.1

Loss on termination of debt

550,735

(550,735)

(100.0

)

Foreclosed real estate and repossessed assets, net

17,722

23,106

(5,384)

(23.3

)

Other credit costs, net

(1,065)

1,188

(2,253)

N.M

Total non-interest expense

412,568

951,697

(539,129)

(56.6

)

Income (loss) before income tax expense (benefit)

110,079

(397,720)

507,799

N.M

Income tax expense (benefit)

37,003

(149,702)

186,705

N.M

Income (loss) after income tax expense (benefit)

73,076

(248,018)

321,094

N.M

Income attributable to non-controlling interest

4,198

3,345

853

25.5

Net income (loss) attributable to TCF Financial Corporation

68,878

(251,363)

320,241

N.M

Preferred stock dividends

9,371

N.M

Net income (loss) available to common stockholders

59,507

(251,363)

310,870

N.M

Net income (loss) per common share:

Basic

.37

(1.58)

1.95

N.M

Diluted

.37

(1.58)

1.95

N.M

Dividends declared per common share

.10

Average common and common equivalent shares outstanding (in thousands):

Basic

160,644

158,810

1,834

1.2

Diluted

161,443

158,810

2,633

1.7

N.M. Not meaningful.

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

(Unaudited)

		Three Months Ended June 30,				Change
		2013		2012		$	%
Net income attributable to TCF Financial Corporation	$	38,904	$	31,531	$	7,373	23.4	%
Other comprehensive income (loss):
Unrealized holding (losses) gains arising during the period on securities available for sale		(34,420)		19,868		(54,288)	N.M.
Foreign currency hedge		874		268		606	N.M.
Foreign currency translation adjustment		(973)		(324)		(649)	N.M.
Recognized postretirement prior service cost and transition obligation		(12)		(7)		(5)	(71.4)
Income tax benefit (expense)		12,662		(7,375)		20,037	N.M.
Total other comprehensive (loss) income		(21,869)		12,430		(34,299)	N.M.
Comprehensive income	$	17,035	$	43,961	$	(26,926)	(61.2)

		Six Months Ended June 30,				Change
		2013		2012		$	%
Net income (loss) attributable to TCF Financial Corporation	$	68,878	$	(251,363)	$	320,241	N.M.	%
Other comprehensive income (loss):
Reclassification adjustment for securities gains included in net income (loss) attributable to TCF Financial Corporation		-		(76,967)		76,967	(100.0)
Unrealized holding (losses) gains arising during the period on securities available for sale		(48,249)		12,100		(60,349)	N.M.
Foreign currency hedge		1,411		(136)		1,547	N.M.
Foreign currency translation adjustment		(1,595)		61		(1,656)	N.M.
Recognized postretirement prior service cost and transition obligation		(24)		(14)		(10)	(71.4)
Income tax benefit		17,681		23,833		(6,152)	(25.8)
Total other comprehensive loss		(30,776)		(41,123)		10,347	25.2
Comprehensive income (loss)	$	38,102	$	(292,486)	$	330,588	N.M.

N.M. Not meaningful.

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

At Jun. 30,

At Dec. 31,

Change

2013

2012

ASSETS

Cash and due from banks

1,132,436

1,100,347

32,089

2.9

Investments

118,918

120,867

(1,949)

(1.6

)

Securities available for sale

620,260

712,091

(91,831)

(12.9

)

Loans and leases held for sale

104,933

10,289

94,644

N.M

Loans and leases:

Consumer real estate

6,356,426

6,674,501

(318,075)

(4.8

)

Commercial

3,350,334

3,405,235

(54,901)

(1.6

)

Leasing and equipment finance

3,251,703

3,198,017

53,686

1.7

Inventory finance

1,713,528

1,567,214

146,314

9.3

Auto finance

882,202

552,833

329,369

59.6

Other loans and leases

25,099

27,924

(2,825)

(10.1

)

Total loans and leases

15,579,292

15,425,724

153,568

1.0

Allowance for loan and lease losses

(265,599)

(267,128)

1,529

Net loans and leases

15,313,693

15,158,596

155,097

1.0

Premises and equipment, net

439,048

440,466

(1,418)

(.3

)

Goodwill

225,640

Other assets

444,679

457,621

(12,942)

(2.8

)

Total assets

18,399,607

18,225,917

173,690

1.0

LIABILITIES AND EQUITY

Deposits:

Checking

4,931,189

4,834,632

96,557

2.0

Savings

6,101,642

6,104,104

(2,462)

Money market

810,249

820,553

(10,304)

(1.3

)

Subtotal

11,843,080

11,759,289

83,791

Certificates of deposit

2,442,504

2,291,497

151,007

6.6

Total deposits

14,285,584

14,050,786

234,798

1.7

Short-term borrowings

3,030

2,619

411

15.7

Long-term borrowings

1,787,728

1,931,196

(143,468)

(7.4

)

Total borrowings

1,790,758

1,933,815

(143,057)

(7.4

)

Accrued expenses and other liabilities

417,084

364,673

52,411

14.4

Total liabilities

16,493,426

16,349,274

144,152

Equity:

Preferred stock, par value $.01 per share, 30,000,000 authorized; and 4,006,900 shares issued

263,240

Common stock, par value $.01 per share, 280,000,000 shares authorized; 164,453,669 and 163,428,763 shares issued

1,645

1,634

Additional paid-in capital

763,349

750,040

13,309

1.8

Retained earnings, subject to certain restrictions

920,894

877,445

43,449

5.0

Accumulated other comprehensive (loss) income

(18,333)

12,443

(30,776)

N.M

Treasury stock at cost, 42,566 shares, and other

(41,276)

(41,429)

153

Total TCF Financial Corporation stockholders’ equity

1,889,519

1,863,373

26,146

1.4

Non-controlling interest in subsidiaries

16,662

13,270

3,392

25.6

Total equity

1,906,181

1,876,643

29,538

1.6

Total liabilities and equity

18,399,607

18,225,917

173,690

1.0

N.M. Not meaningful.

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

Change from

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Jun. 30,

2013

2012

2013

2012

Delinquency Data - Principal Balances (1)

60 days or more:

Consumer real estate

First mortgage lien

66,876

66,164

76,020

80,153

86,714

712

(19,838)

Junior lien

8,022

9,674

13,141

13,388

13,967

(1,652)

(5,945)

Total consumer real estate

74,898

75,838

89,161

93,541

100,681

(940)

(25,783)

Commercial

1,679

906

2,630

2,652

5,616

773

(3,937)

Leasing and equipment finance

1,840

2,067

2,568

1,554

1,492

(227)

348

Inventory finance

156

119

206

(123)

(173)

Auto finance

868

563

532

305

806

Other

(8)

Subtotal

79,344

79,530

95,041

98,154

108,091

(186)

(28,747)

Acquired portfolios

627

578

982

1,069

1,483

(856)

Total delinquencies

79,971

80,108

96,023

99,223

109,574

(137)

(29,603)

Delinquency Data - % of Portfolio (1)

60 days or more:

Consumer real estate

First mortgage lien

1.74

1.67

1.88

1.93

bps

(19)

bps

Junior lien

.34

.43

.55

.59

.64

(9)

(30)

Total consumer real estate

1.21

1.22

1.38

1.46

1.51

(1)

(30)

Commercial

.05

.03

.08

.17

(12)

Leasing and equipment finance

.06

.07

.08

.05

(1)

Inventory finance

.01

(1)

Auto finance

.10

.08

.10

.08

.02

Other

.11

.12

.09

.13

(2)

Subtotal

.52

.53

.64

.67

.74

(1)

(22)

Acquired portfolios

.51

.37

.58

.50

.58

(7)

Total delinquencies

.52

.64

.67

.73

(21)

(1) Excludes non-accrual loans and leases.

Change from

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Jun. 30,

2013

2012

2013

2012

Non-Accrual Loans and Leases

Non-accrual loans and leases:

Consumer real estate

First mortgage lien

132,586

186,218

199,631

197,649

122,406

(53,632)

10,180

Junior lien

30,744

33,907

35,269

35,936

18,272

(3,163)

12,472

Total consumer real estate

163,330

220,125

234,900

233,585

140,678

(56,795)

22,652

Commercial

102,103

108,505

127,746

169,339

150,215

(6,402)

(48,112)

Leasing and equipment finance

11,103

11,695

13,652

15,812

29,429

(592)

(18,326)

Inventory finance

1,008

1,480

1,487

1,120

1,900

(472)

(892)

Auto finance

118

106

101

118

Other

809

1,477

1,571

1,957

2,204

(668)

(1,395)

Total non-accrual loans and leases

278,471

343,388

379,457

421,813

324,426

(64,917)

(45,955)

Non-accrual loans and leases - rollforward

Balance, beginning of period

343,388

379,457

421,813

324,426

308,943

(36,069)

34,445

Additions

41,549

56,712

88,235

210,916

111,739

(15,163)

(70,190)

Charge-offs

(12,780)

(23,773)

(27,657)

(49,116)

(28,228)

10,993

15,448

Transfers to other assets

(16,014)

(20,087)

(17,305)

(24,632)

(34,473)

4,073

18,459

Return to accrual status

(21,360)

(34,692)

(55,261)

(30,300)

(22,200)

13,332

840

Payments received

(16,977)

(15,399)

(30,832)

(9,652)

(12,261)

(1,578)

(4,716)

Sales

(40,461)

(133)

(40,328)

(40,461)

Other, net

1,126

1,303

464

171

906

(177)

220

Balance, end of period

278,471

343,388

379,457

421,813

324,426

(64,917)

(45,955)

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA, CONTINUED

(Dollars in thousands)

(Unaudited)

Change from

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Jun 30,

2013

2012

2013

2012

Other Real Estate Owned

Other real estate owned (1)

Consumer real estate

44,759

46,404

69,599

85,764

83,176

(1,645)

(38,417)

Commercial real estate

21,473

25,359

27,379

34,662

42,700

(3,886)

(21,227)

Total other real estate owned

66,232

71,763

96,978

120,426

125,876

(5,531)

(59,644)

Other real estate owned - rollforward

Balance, beginning of period

71,763

96,978

120,426

125,876

127,228

(25,215)

(55,465)

Transferred in

16,503

20,855

18,444

26,097

33,739

(4,352)

(17,236)

Sales

(17,895)

(40,456)

(39,528)

(28,479)

(29,448)

22,561

11,553

Writedowns

(4,270)

(5,294)

(4,614)

(3,493)

(6,237)

1,024

1,967

Other, net

131

(320)

2,250

425

594

451

(463)

Balance, end of period

66,232

71,763

96,978

120,426

125,876

(5,531)

(59,644)

Ending number of properties owned

Consumer real estate

246

224

418

425

426

(180)

Commercial real estate

(12)

Total

266

242

436

451

458

(192)

(1) Includes properties owned and foreclosed properties subject to redemption.

Change from

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Jun 30,

2013

2012

2013

2012

Non-Accrual Loans and Leases and Other Real Estate Owned

Non-accrual loans and leases

196,996

221,278

261,796

318,611

324,426

(24,282)

(127,430)

Loans discharged in bankruptcy (1)

81,475

122,110

117,661

103,202

(40,635)

81,475

Other real estate owned

66,232

71,763

96,978

120,426

125,876

(5,531)

(59,644)

Total non-accrual loans and leases and other real estate owned

344,703

415,151

476,435

542,239

450,302

(70,448)

(105,599)

Percent of total loans and leases and other real estate owned

2.20

2.65

3.07

3.54

2.93

(45)

bps

(73)

bps

(1) Consumer real estate loans required to be reported as nonaccrual loans, regardless of delinquency status, due to the implementation of clarifying regulatory guidance in the third quarter of 2012, related to the discharge of a borrowers’ personal liability following Chapter 7 bankruptcy proceedings.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA, CONTINUED

(Dollars in thousands)

(Unaudited)

Allowance for Loan and Lease Losses

At June 30, 2013

At March 31, 2013

At June 30, 2012

Change from

% of

Mar. 31,

Jun. 30,

Balance

Portfolio

Balance

Portfolio

Balance

Portfolio

2013

2012

Consumer real estate

181,052

2.85

182,687

2.85

188,087

2.76

bps

Commercial

50,072

1.49

48,556

1.46

50,699

1.44

Leasing and equipment finance

17,975

.55

17,541

.55

25,450

.81

(26)

Inventory finance

8,197

.48

8,788

.46

7,072

.49

(1)

Auto finance

7,509

.85

5,390

.75

1,951

.74

Other

794

3.16

634

2.67

902

3.10

Total

265,599

1.70

263,596

1.69

274,161

1.80

(10)

Net Charge-Offs

Change from

Quarter Ended

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Jun. 30,

2013

2012

2013

2012

Consumer real estate

First mortgage lien

15,084

19,907

22,163

40,469

18,369

(4,823)

(3,285)

Junior lien

8,642

10,540

11,757

34,202

16,487

(1,898)

(7,845)

Total consumer real estate

23,726

30,447

33,920

74,671

34,856

(6,721)

(11,130)

Commercial

2,449

7,849

8,351

20,547

8,455

(5,400)

(6,006)

Leasing and equipment finance

244

1,210

1,345

7,521

1,173

(966)

(929)

Inventory finance

(14)

355

193

444

225

(369)

(239)

Auto finance

765

836

771

280

(71)

684

Other

524

307

940

991

217

455

Total

27,694

41,004

45,520

104,454

44,859

(13,310)

(17,165)

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

Change from

Quarter Ended (1)

Quarter Ended

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Jun. 30,

2013

2012

2013

2012

Consumer real estate

First mortgage lien

1.48

1.90

2.06

3.60

1.58

(42)

bps

(10)

bps

Junior lien

1.46

1.78

1.99

6.12

3.07

(32)

(161)

Total consumer real estate

1.48

1.86

2.04

4.44

2.05

(38)

(57)

Commercial

.29

.94

.97

2.32

.97

(65)

(68)

Leasing and equipment finance

.03

.15

.17

.95

.15

(12)

Inventory finance

.08

.05

.12

.06

(8)

(6)

Auto finance

.37

.50

.61

.30

.14

(13)

Other

16.05

9.01

N.M.

704

N.M.

Total

.70

1.06

1.18

2.74

1.18

(36)

(48)

(1) Annualized.

N.M. Not Meaningful.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

Three Months Ended June 30,

2013

2012

Average

Yields and

Average

Yields and

Balance

Interest

Rates (1) (2)

Balance

Interest

Rates (1) (2)

ASSETS:

Investments and other

735,078

3,761

2.05 %

430,084

2,654

2.48 %

U.S. Government sponsored entities:

Mortgage-backed securities, fixed rate

654,968

4,636

2.83

733,796

5,813

3.17

U.S. Treasury securities

494

.07

Other securities

2.54

225

4.14

Total securities available for sale (3)

655,555

4,637

2.83

734,021

5,816

3.17

Loans and leases held for sale

116,390

2,535

8.74

44,788

979

8.80

Loans and leases:

Consumer real estate:

Fixed-rate

3,809,066

55,977

5.89

4,365,670

63,432

5.84

Variable-rate

2,621,619

33,545

5.13

2,427,745

30,202

5.00

Total consumer real estate

6,430,685

89,522

5.58

6,793,415

93,634

5.54

Commercial:

Fixed- and adjustable-rate

2,392,315

31,254

5.24

2,730,085

37,242

5.49

Variable-rate

944,091

8,354

3.55

761,964

7,550

3.99

Total commercial

3,336,406

39,608

4.76

3,492,049

44,792

5.16

Leasing and equipment finance

3,236,799

39,990

4.94

3,145,914

43,109

5.48

Inventory finance

1,875,810

27,860

5.96

1,571,004

23,690

6.07

Auto finance

823,102

10,193

4.97

223,893

3,835

6.89

Other

13,060

263

8.10

17,647

336

7.66

Total loans and leases (4)

15,715,862

207,436

5.29

15,243,922

209,396

5.52

Total interest-earning assets

17,222,885

218,369

5.08

16,452,815

218,845

5.34

Other assets (5)

1,110,213

1,202,003

Total assets

18,333,098

17,654,818

LIABILITIES AND EQUITY:

Non-interest bearing deposits:

Retail

1,476,173

1,316,767

Small business

752,395

725,052

Commercial and custodial

326,773

310,321

Total non-interest bearing deposits

2,555,341

2,352,140

Interest-bearing deposits:

Checking

2,351,652

377

.06

2,306,810

883

.15

Savings

6,059,640

2,790

.18

6,031,015

5,164

.34

Money market

791,859

547

.28

748,016

718

.39

Subtotal

9,203,151

3,714

.16

9,085,841

6,765

.30

Certificates of deposit

2,360,881

5,137

.87

1,608,653

3,432

.86

Total interest-bearing deposits

11,564,032

8,851

.31

10,694,494

10,197

.38

Total deposits

14,119,373

8,851

.25

13,046,634

10,197

.31

Borrowings:

Short-term borrowings

7,314

.44

705,888

535

.30

Long-term borrowings

1,879,576

6,705

1.43

1,986,182

9,259

1.87

Total borrowings

1,886,890

6,713

1.42

2,692,070

9,794

1.46

Total interest-bearing liabilities

13,450,922

15,564

.46

13,386,564

19,991

.60

Total deposits and borrowings

16,006,263

15,564

.39

15,738,704

19,991

.51

Other liabilities

420,398

335,113

Total liabilities

16,426,661

16,073,817

Total TCF Financial Corp.

stockholders’ equity

1,886,138

1,563,158

Non-controlling interest in subsidiaries

20,299

17,843

Total equity

1,906,437

1,581,001

Total liabilities and equity

18,333,098

17,654,818

Net interest income and margin

202,805

4.72

198,854

4.86

(1) Annualized.

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

(3) Average balances and yields of securities available for sale are based upon historical amortized cost and exclude equity securities.

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

(5) Includes operating leases.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

Six Months Ended June 30,

2013

2012

Average

Yields and

Average

Yields and

Balance

Interest

Rates (1) (2)

Balance

Interest

Rates (1) (2)

ASSETS:

Investments and other

774,987

7,007

1.82 %

587,802

5,042

1.72 %

U.S. Government sponsored entities:

Mortgage-backed securities, fixed rate

664,858

9,430

2.84

1,410,407

24,924

3.53

U.S. Treasury securities

696

.07

Other securities

100

2.52

227

4.13

Total securities available for sale (3)

665,654

9,432

2.83

1,410,634

24,928

3.53

Loans and leases held for sale

135,472

5,139

7.65

25,330

1,024

8.13

Loans and leases:

Consumer real estate:

Fixed-rate

3,862,590

113,035

5.90

4,404,410

129,584

5.92

Variable-rate

2,630,618

66,627

5.11

2,414,829

60,270

5.02

Total consumer real estate

6,493,208

179,662

5.58

6,819,239

189,854

5.60

Commercial:

Fixed- and adjustable-rate

2,434,960

63,808

5.28

2,733,967

75,452

5.55

Variable-rate

906,107

15,868

3.53

740,918

15,062

4.09

Total commercial

3,341,067

79,676

4.81

3,474,885

90,514

5.24

Leasing and equipment finance

3,218,252

80,903

5.03

3,137,122

87,109

5.55

Inventory finance

1,780,058

53,465

6.06

1,353,469

42,416

6.30

Auto finance

747,022

18,835

5.08

154,728

5,418

7.04

Other

13,348

539

8.15

17,612

705

8.04

Total loans and leases (4)

15,592,955

413,080

5.33

14,957,055

416,016

5.59

Total interest-earning assets

17,169,068

434,658

5.10

16,980,821

447,010

5.29

Other assets (5)

1,118,397

1,290,585

Total assets

18,287,465

18,271,406

LIABILITIES AND EQUITY:

Non-interest bearing deposits:

Retail

1,451,381

1,338,539

Small business

748,304

716,734

Commercial and custodial

328,373

307,427

Total non-interest bearing deposits

2,528,058

2,362,700

Interest-bearing deposits:

Checking

2,330,078

874

.08

2,260,499

1,785

.16

Savings

6,074,949

6,159

.20

5,956,874

10,602

.36

Money market

803,551

1,177

.30

705,255

1,328

.38

Subtotal

9,208,578

8,210

.18

8,922,628

13,715

.31

Certificates of deposit

2,342,178

10,322

.89

1,372,164

5,543

.81

Total interest-bearing deposits

11,550,756

18,532

.32

10,294,792

19,258

.38

Total deposits

14,078,814

18,532

.27

12,657,492

19,258

.31

Borrowings:

Short-term borrowings

7,966

.42

571,019

865

.30

Long-term borrowings

1,903,227

13,475

1.42

2,901,673

47,224

3.27

Total borrowings

1,911,193

13,491

1.42

3,472,692

48,089

2.78

Total interest-bearing liabilities

13,461,949

32,023

.48

13,767,484

67,347

.98

Total deposits and borrowings

15,990,007

32,023

.40

16,130,184

67,347

.84

Other liabilities

404,571

435,210

Total liabilities

16,394,578

16,565,394

Total TCF Financial Corp.

stockholders’ equity

1,874,348

1,690,337

Non-controlling interest in subsidiaries

18,539

15,675

Total equity

1,892,887

1,706,012

Total liabilities and equity

18,287,465

18,271,406

Net interest income and margin

402,635

4.72

379,663

4.49

(1) Annualized.

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

(3) Average balances and yields of securities available for sale are based upon historical amortized cost and exclude equity securities.

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

(5) Includes operating leases.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per-share data)

(Unaudited)

Three Months Ended

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

2013

2012

Interest income:

Loans and leases

206,675

204,905

210,490

210,140

208,766

Securities available for sale

4,637

4,795

4,615

5,607

5,816

Investments and other

6,296

5,850

3,922

4,105

3,633

Total interest income

217,608

215,550

219,027

219,852

218,215

Interest expense:

Deposits

8,851

9,681

10,972

10,757

10,197

Borrowings

6,713

6,778

6,992

8,536

9,794

Total interest expense

15,564

16,459

17,964

19,293

19,991

Net interest income

202,044

199,091

201,063

200,559

198,224

Provision for credit losses

32,591

38,383

48,520

96,275

54,106

Net interest income after provision for credit losses

169,453

160,708

152,543

104,284

144,118

Non-interest income:

Fees and service charges

41,572

39,323

44,262

43,745

48,090

Card revenue

13,270

12,417

12,974

12,927

13,530

ATM revenue

5,828

5,505

5,584

6,122

6,276

Subtotal

60,670

57,245

62,820

62,794

67,896

Leasing and equipment finance

22,874

16,460

26,149

20,498

23,207

Gain on sales of auto loans

8,135

7,146

6,869

7,486

5,496

Gain on sale of consumer real estate loans

4,069

8,126

854

4,559

Other

4,035

3,726

3,973

3,688

3,168

Fees and other revenue

99,783

92,703

100,665

99,025

99,767

Gains on securities, net

(528)

13,033

13,116

Total non-interest income

99,783

92,703

100,137

112,058

112,883

Non-interest expense:

Compensation and employee benefits

105,537

104,229

101,678

98,409

97,787

Occupancy and equipment

33,062

32,875

32,809

33,006

32,731

FDIC insurance

8,362

7,710

8,671

6,899

8,469

Operating lease depreciation

6,150

5,635

5,905

6,325

6,417

Advertising and marketing

5,532

5,732

4,303

4,248

5,404

Deposit account premiums

600

602

523

485

1,690

Other

41,946

37,939

53,472

36,173

36,956

Subtotal

201,189

194,722

207,361

185,545

189,454

Foreclosed real estate and repossessed assets, net

7,555

10,167

7,582

10,670

12,059

Other credit costs, net

(228)

(837)

(894)

593

1,476

Total non-interest expense

208,516

204,052

214,049

196,808

202,989

Income before income tax expense

60,720

49,359

38,631

19,534

54,012

Income tax expense

19,444

17,559

10,540

6,304

20,542

Income after income tax expense

41,276

31,800

28,091

13,230

33,470

Income attributable to non-controlling interest

2,372

1,826

1,306

1,536

1,939

Net income attributable to TCF Financial Corporation

38,904

29,974

26,785

11,694

31,531

Preferred stock dividends

4,847

4,524

3,234

2,372

Net income available to common stockholders

34,057

25,450

23,551

9,322

31,531

Net income per common share:

Basic

.21

.16

.15

.06

.20

Diluted

.21

.16

.15

.06

.20

Dividends declared per common share

.05

Financial Highlights:

Pre-tax pre-provision profit(1)

93,311

87,742

87,151

115,809

108,118

Return on average assets(2)

.90

.70

.63

.30

.76

Return on average common equity(2)

8.39

6.36

5.93

2.36

8.13

Net interest margin(2)

4.72

4.79

4.85

4.86

(1) Pre-tax pre-provision profit ("PTPP") is calculated as total revenues less non-interest expense.

(2) Annualized.

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS

(In thousands)

(Unaudited)

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

2013

2012

ASSETS

Cash and due from banks

871,288

945,928

777,995

628,697

555,590

Investments

120,427

122,014

122,970

123,223

149,813

U.S. Government sponsored entities:

Mortgage-backed securities

655,795

676,296

696,506

701,155

736,251

U.S. Treasury securities

494

900

Other securities

2,575

2,400

2,150

2,224

2,097

Total securities available for sale

658,864

679,596

698,656

703,379

738,348

Loans and leases held for sale

116,390

154,766

53,140

80,549

44,788

Loans and leases:

Consumer real estate:

Fixed-rate

3,809,066

3,916,709

4,012,702

4,197,903

4,365,670

Variable-rate

2,621,619

2,639,717

2,650,958

2,531,351

2,427,745

Total consumer real estate

6,430,685

6,556,426

6,663,660

6,729,254

6,793,415

Commercial:

Fixed- and adjustable-rate

2,392,315

2,478,079

2,614,824

2,682,193

2,730,085

Variable-rate

944,091

867,701

837,944

855,918

761,964

Total commercial

3,336,406

3,345,780

3,452,768

3,538,111

3,492,049

Leasing and equipment finance

3,236,799

3,199,499

3,184,540

3,164,592

3,145,914

Inventory finance

1,875,810

1,686,364

1,570,829

1,440,298

1,571,004

Auto finance

823,102

670,096

504,565

367,271

223,893

Other

13,060

13,641

14,704

16,280

17,647

Total loans and leases

15,715,862

15,471,806

15,391,066

15,255,806

15,243,922

Allowance for loan and lease losses

(264,403)

(265,392)

(269,578)

(264,626)

(266,187)

Net loans and leases

15,451,459

15,206,414

15,121,488

14,991,180

14,977,735

Premises and equipment, net

440,383

440,437

442,287

442,456

438,438

Goodwill

225,640

Other assets

448,647

469,757

506,212

521,397

524,466

Total assets

18,333,098

18,244,552

17,948,388

17,716,521

17,654,818

LIABILITIES AND EQUITY

Non-interest-bearing deposits:

Retail

1,476,173

1,426,314

1,294,027

1,275,722

1,316,767

Small business

752,395

744,168

775,334

746,511

725,052

Commercial and custodial

326,773

329,992

329,919

324,739

310,321

Total non-interest bearing deposits

2,555,341

2,500,474

2,399,280

2,346,972

2,352,140

Interest-bearing deposits:

Checking

2,351,652

2,308,263

2,248,481

2,255,561

2,306,810

Savings

6,059,640

6,090,427

6,083,168

6,153,079

6,031,015

Money market

791,859

815,374

819,596

848,899

748,016

Subtotal

9,203,151

9,214,064

9,151,245

9,257,539

9,085,841

Certificates of deposit

2,360,881

2,323,267

2,206,173

1,953,208

1,608,653

Total interest-bearing deposits

11,564,032

11,537,331

11,357,418

11,210,747

10,694,494

Total deposits

14,119,373

14,037,805

13,756,698

13,557,719

13,046,634

Borrowings:

Short-term borrowings

7,314

8,631

47,715

65,531

705,888

Long-term borrowings

1,879,576

1,927,139

1,928,507

1,985,094

1,986,182

Total borrowings

1,886,890

1,935,770

1,976,222

2,050,625

2,692,070

Accrued expenses and other liabilities

420,398

390,825

434,471

343,336

335,113

Total liabilities

16,426,661

16,364,400

16,167,391

15,951,680

16,073,817

Equity:

Preferred stock

263,240

180,359

166,721

10,993

Common stock

1,642

1,637

1,634

1,631

1,625

Additional paid-in capital

760,256

753,583

749,445

742,598

738,089

Retained earnings, subject to certain restrictions

903,300

880,582

866,895

862,570

846,349

Accumulated other comprehensive (loss) income

(758)

5,624

13,131

19,321

11,601

Treasury stock at cost and other

(41,542)

(41,273)

(43,462)

(42,890)

(45,499)

Total TCF Financial Corporation stockholders’ equity

1,886,138

1,863,393

1,768,002

1,749,951

1,563,158

Non-controlling interest in subsidiaries

20,299

16,759

12,995

14,890

17,843

Total equity

1,906,437

1,880,152

1,780,997

1,764,841

1,581,001

Total liabilities and equity

18,333,098

18,244,552

17,948,388

17,716,521

17,654,818

-more-

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY YIELDS AND RATES(1)(2)

(Unaudited)

	Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,
	2013		2013		2012		2012		2012
ASSETS

Investments and other	2.05	%	1.61	%	1.77	%	2.09	%	2.48	%
U.S. Government sponsored entities:
Mortgage-backed securities, fixed-rate	2.83		2.84		2.64		3.15		3.17
U.S. Treasury securities	.07		.07		-		-		-
Other securities	2.54		2.49		2.52		3.32		4.14
Total securities available for sale(3)	2.83		2.84		2.64		3.15		3.17
Loans and leases held for sale	8.74		6.82		8.00		7.89		8.80
Loans and leases:
Consumer real estate:
Fixed-rate	5.89		5.91		5.95		5.94		5.84
Variable-rate	5.13		5.08		5.07		5.04		5.00
Total consumer real estate	5.58		5.58		5.60		5.60		5.54
Commercial:
Fixed- and adjustable-rate	5.24		5.33		5.60		5.57		5.49
Variable-rate	3.55		3.51		3.55		3.77		3.99
Total commercial	4.76		4.86		5.10		5.14		5.16
Leasing and equipment finance	4.94		5.11		5.24		5.33		5.48
Inventory finance	5.96		6.16		6.11		6.19		6.07
Auto finance	4.97		5.23		5.53		5.97		6.89
Other	8.10		8.19		8.31		7.83		7.66
Total loans and leases	5.29		5.38		5.47		5.50		5.52

Total interest-earning assets	5.08		5.11		5.21		5.32		5.34

LIABILITIES

Interest-bearing deposits:
Checking	.06		.09		.11		.12		.15
Savings	.18		.22		.29		.31		.34
Money market	.28		.31		.35		.38		.39
Subtotal	.16		.20		.25		.27		.30
Certificates of deposit	.87		.90		.92		.92		.86
Total interest-bearing deposits	.31		.34		.38		.38		.38
Total deposits	.25		.28		.32		.32		.31
Borrowings:
Short-term borrowings	.44		.40		.41		.24		.30
Long-term borrowings	1.43		1.41		1.44		1.71		1.87
Total borrowings	1.42		1.41		1.41		1.66		1.46

Total interest-bearing liabilities	.46		.49		.54		.58		.60

Net interest margin	4.72		4.72		4.79		4.85		4.86

(1) Annualized.

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

(3) Average yields of securities available for sale are based upon the historical amortized cost and excludes equity securities.

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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(1)

(Dollars in thousands)

(Unaudited)

	At Jun. 30,			At Dec. 31,
	2013			2012
Computation of tangible realized common equity to tangible assets:
Total equity	$	1,906,181		$	1,876,643
Less: Non-controlling interest in subsidiaries	16,662			13,270
Total TCF Financial Corporation stockholders’ equity	1,889,519			1,863,373
Less:
Preferred stock	263,240			263,240
Goodwill	225,640			225,640
Other intangibles	7,345			8,674
Accumulated other comprehensive (loss) income	(18,333)			12,443
Tangible realized common equity	$	1,411,627		$	1,353,376

Total assets	$	18,399,607		$	18,225,917
Less:
Goodwill	225,640			225,640
Other intangibles	7,345			8,674
Tangible assets	$	18,166,622		$	17,991,603

Tangible realized common equity to tangible assets	7.77		%	7.52		%

	At Jun. 30,			At Dec. 31,
	2013			2012
Computation of tier 1 risk-based capital ratio:
Total tier 1 capital	$	1,695,092		$	1,633,336
Total risk-weighted assets	15,038,256			14,733,203
Total tier 1 risk-based capital ratio	11.27		%	11.09		%

Computation of tier 1 common capital ratio:
Total tier 1 capital	$	1,695,092		$	1,633,336
Less:
Preferred stock	263,240			263,240
Qualifying non-controlling interest in subsidiaries	16,662			13,270
Total tier 1 common capital	$	1,415,190		$	1,356,826

Total tier 1 common capital ratio	9.41		%	9.21		%

(1) When evaluating capital adequacy and utilization, management considers financial measures such as Tangible Realized Common Equity to Tangible Assets and the Tier 1 Common Capital Ratio. These measures are non-GAAP financial measures and are viewed by management as useful indicators of capital levels available to withstand unexpected market or economic conditions, and also provide investors, regulators, and other users with information to be viewed in relation to other banking institutions.

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TCF Financial Inactive 8-KTCF Reports Quarterly Net Income of $34.1 Million, or 21 Cents Per Share