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TCF Reports Quarterly Net Income of $25.5 Million, or 16 Cents Per Share

  TCF Reports Quarterly Net Income of $25.5 Million, or 16 Cents Per Share

Business Wire

WAYZATA, Minn. -- April 19, 2013

TCF Financial Corporation (NYSE: TCB):

FIRST QUARTER HIGHLIGHTS

- Net interest margin of 4.72 percent, up 58 basis points from the first
quarter of 2012

- Pre-tax pre-provision profit of $87.7 million, up 24.3 percent from the
first quarter of 2012

- Provision for credit losses of $38.4 million, down 20.9 percent from the
first quarter of 2012

- Average deposits increased $1.8 billion, or 14.4 percent, from the first
quarter of 2012

- Non-accrual loans and leases and other real estate owned decreased $61.3
million, or 12.9 percent, from the fourth quarter of 2012

- Over 60-day accruing delinquent loans decreased by $15.5 million, or 16.3
percent, from the fourth quarter of 2012

- Announced common and preferred stock dividend payments payable May 31, 2013
and June 3, 2013, respectively

                                                            
Summary of
Financial                                              Table 1
Results
($ in
thousands,
except                                                   Percent Change
per-share
data)
                1Q            4Q            1Q              1Q13      1Q13
                                                             vs         vs
                2013        2012        2012 ^(3)      4Q12     1Q12 
Net income      $ 25,450      $ 23,551      $ (282,894 )     8.1    %   N.M. %
(loss)
Net interest      199,091       201,063       180,173        (1.0 )     10.5
income
Pre-tax
pre-provision     87,742        87,151        70,578         .7         24.3
profit^(1)
Diluted
earnings          .16           .15           (1.78    )     6.7        N.M.
(loss) per
common share
                                                                             
Financial
Ratios^(2)
Return on
average           .70     %     .63     %     (5.96    ) %
assets
Return on
average           6.36          5.93          (63.38   )
common equity
Net interest      4.72          4.79          4.14
margin
Net
charge-offs
as a              1.06          1.18          1.06
percentage of
average loans
and leases
                                                                             
(1) Pre-tax pre-provision profit (''PTPP'') is calculated as total revenues
less non-interest expense. First quarter 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.
(2) Annualized.
(3) Includes a net, after-tax charge of $295.8 million, or $1.87 per share,
related to the balance sheet repositioning.
N.M. Not meaningful.


TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported net income for
the first quarter of 2013 of $25.5 million, compared with a net loss of $282.9
million for the first quarter of 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 that period) and
net income of $23.6 million for the fourth quarter of 2012. Diluted earnings
per common share was 16 cents for the first quarter of 2013, compared with a
loss per common share of $1.78 for the first quarter of 2012 (earnings per
common share of 8 cents before the balance sheet repositioning charge) and
diluted earnings per common share of 15 cents for the fourth quarter of 2012.

Chairman’s Statement
“TCF’s first quarter results were highlighted by strong credit quality
improvements as well as additional core revenue generation,” said William A.
Cooper, Chairman and Chief Executive Officer. “Our encouraging credit trends,
which began in late 2012 and have continued into 2013, include decreases in
non-accrual loans and leases, other real estate owned and net charge-offs.
Revenue increased during the quarter due to the impact of continued core auto
loan sales and expanded core consumer real estate loan sales.

“TCF’s focus throughout 2013 is to generate results based on the momentum
created through our building and investing strategies in 2012. We executed on
this initiative in the first quarter as net interest margin remained strong
and loan and lease balances continued to grow. I am encouraged by our progress
so far and am confident that we are in position to drive results moving
forward.”

Revenue      
                                                           
Total                                                  Table 2
Revenue
                                                      Percent Change       
                 1Q            4Q              1Q          1Q13 vs     1Q13 vs
($ in          2013       2012         2012      4Q12       1Q12     
thousands)
Net interest   $ 199,091   $ 201,063    $ 180,173     (1.0   ) %   10.5     %
income
Fees and
other
revenue:
Fees and
service          39,323        44,262          41,856      (11.2  )     (6.1   )
charges
Card revenue     12,417        12,974          13,207      (4.3   )     (6.0   )
ATM revenue     5,505      5,584       6,199       (1.4   )     (11.2  )
  Total
  banking        57,245        62,820          61,262      (8.9   )     (6.6   )
  fees
Leasing and
equipment        16,460        26,149          22,867      (37.1  )     (28.0  )
finance
Gains on
sales of
consumer         8,126         854             -           N.M.         N.M.
real estate
loans
Gains on
sales of         7,146         6,869           2,250       4.0          N.M.
auto loans
Other           3,726      3,973       2,355       (6.2   )     58.2
  Total fees
  and other     92,703     100,665     88,734      (7.9   )     4.5
  revenue
    Subtotal     291,794       301,728         268,907     (3.3   )     8.5
(Losses)
gains on        -          (528    )    76,611      (100.0 )     (100.0 )
securities,
net
    Total      $ 291,794   $ 301,200    $ 345,518     (3.1   )     (15.5  )
    revenue
                                                                                 
Net interest     4.72    %     4.79      %     4.14    %
margin ^(1)
Fees and
other
revenue as a     31.77         33.42           25.68
% of total
revenue
                                                                                 
N.M. = Not
meaningful.
(1)                                                           
Annualized.
                                                                                 

Net Interest Income

  *Net interest income for the first quarter of 2013 increased $18.9 million,
    or 10.5 percent, compared with the first quarter of 2012, and decreased
    slightly from the fourth quarter of 2012. The increase from the first
    quarter of 2012 was primarily due to the balance sheet repositioning
    completed in that quarter, which resulted in a $28.6 million reduction to
    the cost of borrowings, partially offset by a $14.3 million reduction of
    interest income on lower levels of mortgage-backed securities for the
    first quarter of 2013, as well as higher average loan balances primarily
    from the inventory finance and auto finance portfolios. These increases
    were partially offset by reduced interest income due to lower average
    balances of consumer real estate loans as a result of loan sales in the
    third and fourth quarters of 2012 and first quarter of 2013, as well as
    lower yields as new originations in our lending businesses continued to be
    impacted by the low interest rate environment.
  *Net interest margin in the first quarter of 2013 was 4.72 percent,
    compared with 4.14 percent in the first quarter of 2012 and 4.79 percent
    in the fourth quarter of 2012. The increase from the first quarter of 2012
    was primarily due to a lower average cost of borrowings as a result of the
    balance sheet repositioning. The decrease from the fourth quarter of 2012
    was primarily due to lower yields in the commercial portfolio and the
    Company’s increased liquidity position driven by the increased loan sale
    activity late in the quarter.

Non-interest Income

  *Fees and service charges in the first quarter of 2013 were $39.3 million,
    down $2.5 million, or 6.1 percent, from the first quarter of 2012 and down
    $4.9 million, or 11.2 percent, from the fourth quarter of 2012. The
    decrease from the first quarter of 2012 was due to the elimination of the
    monthly maintenance fee on deposit products through the reintroduction of
    free checking. The decrease from the fourth quarter of 2012 was primarily
    due to lower transaction activity and higher average balances per customer
    during the first quarter of 2013, partially offset by growth in the
    account base for the third consecutive quarter driven by the
    reintroduction of free checking.
  *Leasing and equipment finance revenue was $16.5 million during first
    quarter of 2013, down $6.4 million, or 28 percent, from the first quarter
    of 2012 and down $9.7 million, or 37.1 percent, from the fourth quarter of
    2012. The decreases were primarily due to lower operating lease and
    sales-type lease revenue growth in the leasing and equipment finance
    portfolio as a result of customer driven events.
  *In the first quarter of 2013 and the fourth quarter of 2012, respectively,
    TCF sold $279.2 million and $25.7 million of consumer real estate loans,
    recognizing gains in the same respective periods.
  *TCF sold $179.8 million, $72 million and $159.6 million of auto loans
    during the first quarters of 2013 and 2012, and the fourth quarter of
    2012, respectively, resulting in gains in the same respective periods.

Loans and                                                        
Leases
                                                              
Period-End
and Average                                                   Table 3
Loans and
Leases
                                                          Percent Change
($ in         1Q             4Q             1Q             1Q13 vs     1Q13 vs
thousands)
              2013          2012          2012          4Q12      1Q12    
Period-End:
Consumer      $ 6,418,666    $ 6,674,501    $ 6,815,909    (3.8  ) %   (5.8  ) %
real estate
Commercial      3,334,716      3,405,235      3,467,089    (2.1  )     (3.8  )
Leasing and
equipment       3,185,234      3,198,017      3,118,755    (.4   )     2.1
finance
Inventory       1,931,363      1,567,214      1,637,958    23.2        17.9
finance
Auto            719,666        552,833        139,047      30.2        N.M.
finance
Other          23,701       27,924       29,178       (15.1 )     (18.8 )
    Total     $ 15,613,346  $ 15,425,724  $ 15,207,936   1.2         2.7
                                                                               
Average:
Consumer      $ 6,556,426    $ 6,663,660    $ 6,845,063    (1.6  )     (4.2  )
real estate
Commercial      3,345,780      3,452,768      3,457,720    (3.1  )     (3.2  )
Leasing and
equipment       3,199,499      3,184,540      3,128,329    .5          2.3
finance
Inventory       1,686,364      1,570,829      1,145,183    7.4         47.3
finance
Auto            670,096        504,565        85,562       32.8        N.M.
finance
Other          13,641       14,704       17,582       (7.2  )     (22.4 )
    Total     $ 15,471,806  $ 15,391,066  $ 14,679,439   .5          5.4
                                                                               
N.M. = Not                                                      
meaningful.
                                                                               

  *Loans and leases were $15.6 billion at March 31, 2013, an increase of
    $405.4 million, or 2.7 percent, compared with March 31, 2012 and an
    increase of $187.6 million, or 1.2 percent, compared with December 31,
    2012. Quarterly average loans and leases were $15.5 billion for the first
    quarter of 2013, an increase of $792.4 million, or 5.4 percent, compared
    with the first quarter of 2012 and an increase of $80.7 million, or .5
    percent, compared with the fourth quarter of 2012. The increases in
    period-end and average loans and leases from both periods were primarily
    due to growth in inventory finance as a result of the Bombardier
    Recreational Products, Inc. (“BRP”) program, as well as the continued
    growth of auto finance, as we continue to expand the business. These
    increases were partially offset by decreases in consumer real estate loans
    driven by sales in the third and fourth quarters of 2012 and the first
    quarter of 2013, as well as decreases in commercial loans due to payoffs
    in the low rate environment exceeding new originations.

Credit Quality

(Table 4 - Credit Trends:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50612238&lang=en)

  *Over 60-day delinquencies improved for the fifth consecutive quarter. The
    over 60-day delinquency rate excluding acquired portfolios and non-accrual
    loans and leases at March 31, 2013 was .53 percent, down from .64 percent
    at December 31, 2012 and .77 percent at March 31, 2012. The decreases from
    both periods were primarily a result of reduced delinquencies in the
    consumer real estate portfolio.
  *Net charge-offs decreased $4.5 million from the fourth quarter of 2012,
    primarily due to improved credit quality in the consumer real estate
    portfolio.
  *Non-accrual loans and leases were $343.4 million at March 31, 2013, a
    decrease of $36.1 million, or 9.5 percent, from December 31, 2012 and an
    increase of $34.4 million, or 11.1 percent, from March 31, 2012. The
    decrease from December 31, 2012 was primarily due to improved credit
    quality in the commercial and consumer real estate portfolios resulting in
    fewer loans entering non-accrual status. The increase from March 31, 2012
    was primarily due to the implementation of clarifying bankruptcy-related
    regulatory guidance in the third quarter of 2012. At March 31, 2013,
    $122.1 million of non-accrual assets were associated with the clarifying
    bankruptcy-related guidance of which 84 percent were less than 60 days
    past due.
  *Other real estate owned was $71.8 million at March 31, 2013, a decrease of
    $25.2 million from December 31, 2012, and a decrease of $55.5 million from
    March 31, 2012. The decrease in both periods was primarily due to a
    portfolio sale of 184 consumer properties during the first quarter of
    2013, as well as a decrease in the number of consumer real estate loans
    transferred from non-accrual status.
  *Provision for credit losses was $38.4 million, a decrease of $10.1 million
    from the fourth quarter of 2012 and a decrease of $10.2 million from the
    first quarter of 2012. The decrease from the fourth quarter of 2012 was
    primarily due to decreased charge-offs in the consumer real estate
    portfolio and lower reserve balances on the leasing and equipment finance
    portfolio as a result of reduced loss experience. The decrease in
    provision from the first quarter of 2012 was primarily due to a reduction
    in the reserve rate for the commercial, leasing and equipment finance and
    inventory finance portfolios as a result of improved credit quality.

Deposits                                                              
                                                                   
Average                                                         Table 5
Deposits
                                                                  Percent Change
($ in          1Q               4Q               1Q               1Q13 vs   1Q13 vs
thousands)
               2013            2012            2012            4Q12     1Q12
                                                                                  
Checking       $ 4,784,945      $ 4,627,627      $ 4,565,065      3.4   %   4.8   %
Savings          6,114,219        6,103,302        5,905,118      .2        3.5
Money market    815,374       819,596       662,493       (.5 )     23.1
Subtotal         11,714,538       11,550,525       11,132,676     1.4       5.2
Certificates    2,323,267     2,206,173     1,135,673     5.3       104.6
Total
average        $ 14,037,805   $ 13,756,698   $ 12,268,349    2.0       14.4
deposits
                                                                                  
Average
interest
rate on          .28        %     .32        %     .30        %
deposits
^(1)
                                                                                  
^(1)                                                                
Annualized.
                                                                                  

  *Total average deposits for the first quarter of 2013 increased $1.8
    billion, or 14.4 percent, from the first quarter of 2012, primarily due to
    special programs for certificates of deposits, the assumption of $778
    million of deposits from Prudential Bank & Trust, FSB in June 2012 and the
    reintroduction of free checking. The average interest rate on deposits in
    the first quarter of 2013 was .28 percent, down four basis points from the
    fourth quarter of 2012 and down two basis points from the first quarter of
    2012.

Non-interest                                                     
Expense
                                                               
Non-interest                                             Table 6
Expense
                                                          Percent Change
($ in              1Q            4Q            1Q          1Q13 vs     1Q13 vs
thousands)
                  2013        2012        2012       4Q12       1Q12
Compensation
and employee     $ 104,229     $ 101,678     $ 95,967      2.5     %   8.6      %
benefits
Occupancy and      32,875        32,809        32,246      .2          2.0
equipment
FDIC insurance     7,710         8,671         6,386       (11.1 )     20.7
Advertising        5,732         4,303         2,617       33.2        119.0
and marketing
Operating
lease              5,635         5,905         6,731       (4.6  )     (16.3  )
depreciation
Deposit
account            602           523           5,971       15.1        (89.9  )
premiums
Other             37,939     53,472     37,296     (29.0 )     1.7
  Core
  operating        194,722       207,361       187,214     (6.1  )     4.0
  expenses
Loss on
termination of     -             -             550,735     N.M.        (100.0 )
debt
Foreclosed
real estate
and                10,167        7,582         11,047      34.1        (8.0   )
repossessed
assets, net
Other credit      (837    )   (894    )   (288    )   6.4         (190.6 )
costs, net
  Total
  non-interest   $ 204,052   $ 214,049   $ 748,708    (4.7  )     (72.7  )
  expense
                                                                                
N.M. = Not                                                       
meaningful.
                                                                                

  *Compensation and employee benefits expense for the first quarter of 2013
    increased $8.3 million, or 8.6 percent, from the first quarter of 2012.
    The increase was primarily due to increased staff levels to support the
    growth of auto finance and to support the assets of the BRP program in
    inventory finance.
  *The combined expense associated with advertising, marketing and deposit
    account premiums decreased $2.3 million from the first quarter of 2012.
    The decrease from the first quarter of 2012 is attributable to TCF’s
    change in strategy for acquiring high quality accounts through the
    reintroduction of free checking, versus the utilization of high dollar
    deposit account premiums.
  *The increase in foreclosed real estate and repossessed assets expense from
    the fourth quarter of 2012 is driven by the acceleration of expenses
    related to a portfolio sale of consumer properties during the first
    quarter of 2013.

Capital                                                         
                                                               
Capital                                                   Table  
Information                                                           7
At period end
($ in
thousands,
except              1Q                               4Q
per-share
data)
                    2013                             2012
Total equity     $  1,900,159                     $  1,876,643
Book value
per common       $  9.86                          $  9.79
share
Tangible
realized
common equity       7.55       %                     7.52       %
to tangible
assets ^(1)
                                                                             
Risk-based
capital ^(2)
Tier 1           $  1,666,630        11.14  %     $  1,633,336        11.09  %
Total               2,019,082        13.49           2,007,835        13.63
                                                                             
Tier 1
leverage         $  1,666,630        9.23   %     $  1,633,336        9.21   %
capital
                                                                             
Tier 1 common    $  1,382,457        9.24   %     $  1,356,826        9.21   %
capital ^(3)
                                                                             
(1) Excludes the impact of goodwill, other intangibles and accumulated other
comprehensive income (loss) (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, qualifying trust preferred
securities and qualifying non-controlling interest in subsidiaries (see
“Reconciliation of GAAP to Non-GAAP Financial Measures” table).



  *On April 17, 2013, the Board of Directors of TCF declared a regular
    quarterly cash dividend of 5 cents per common share payable on May 31,
    2013, to stockholders of record at the close of business on May 15, 2013.
    TCF also declared a dividend on the 7.50% Series A and 6.45% Series B
    Non-Cumulative Perpetual Preferred Stock, both payable on June 3, 2013, to
    stockholders of record at the close of business on May 15, 2013.

Webcast Information
A live webcast of TCF’s conference call to discuss the first quarter earnings
will be hosted at TCF’s website, http://ir.tcfbank.com, on April 19, 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 $18.5
billion in total assets at March 31, 2013. TCF has nearly 430 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.


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
PartI,Item1A of the Company’s Annual Report on Form10-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
or changes in the allowance for loan and lease losses dictated by new market
conditions or regulatory requirements; 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 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 customer opt-in preferences with respect to overdraft fees on
point of sale and ATM transactions or the success of TCF’s reintroduction of
free checking, 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, including SUPERVALU’s sale of several of
its supermarket chains, including Jewel-Osco®, in which TCF has 156 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; 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.


TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per-share data)
(Unaudited)
                                                            
                          Three Months Ended March     Change
                          31,
                          2013          2012           $            %
Interest income:
   Loans and leases     $ 204,905     $ 205,984      $ (1,079   )   (.5    ) %
   Securities             4,795         19,112         (14,317  )   (74.9  )
   available for sale
   Investments and        5,850        2,433         3,417       140.4
   other
       Total interest     215,550      227,529       (11,979  )   (5.3   )
       income
Interest expense:
   Deposits               9,681         9,061          620          6.8
   Borrowings             6,778        38,295        (31,517  )   (82.3  )
       Total interest     16,459       47,356        (30,897  )   (65.2  )
       expense
           Net
           interest       199,091       180,173        18,918       10.5
           income
Provision for credit      38,383       48,542        (10,159  )   (20.9  )
losses
       Net interest
       income after       160,708      131,631       29,077      22.1
       provision for
       credit losses
Non-interest income:
   Fees and service       39,323        41,856         (2,533   )   (6.1   )
   charges
   Card revenue           12,417        13,207         (790     )   (6.0   )
   ATM revenue            5,505        6,199         (694     )   (11.2  )
       Subtotal           57,245        61,262         (4,017   )   (6.6   )
   Leasing and            16,460        22,867         (6,407   )   (28.0  )
   equipment finance
   Gain on sale of
   consumer real          8,126         -              8,126        N.M.
   estate loans
   Gain on sales of       7,146         2,250          4,896        N.M.
   auto loans
   Other                  3,726        2,355         1,371       58.2
       Fees and other     92,703        88,734         3,969        4.5
       revenue
   Gains on               -            76,611        (76,611  )   (100.0 )
   securities, net
       Total
       non-interest       92,703       165,345       (72,642  )   (43.9  )
       income
Non-interest expense:
   Compensation and       104,229       95,967         8,262        8.6
   employee benefits
   Occupancy and          32,875        32,246         629          2.0
   equipment
   FDIC insurance         7,710         6,386          1,324        20.7
   Advertising and        5,732         2,617          3,115        119.0
   marketing
   Operating lease        5,635         6,731          (1,096   )   (16.3  )
   depreciation
   Deposit account        602           5,971          (5,369   )   (89.9  )
   premiums
   Other                  37,939       37,296        643         1.7
       Subtotal           194,722       187,214        7,508        4.0
   Loss on
   termination of         -             550,735        (550,735 )   (100.0 )
   debt
   Foreclosed real
   estate and             10,167        11,047         (880     )   (8.0   )
   repossessed
   assets, net
   Other credit           (837    )     (288     )     (549     )   (190.6 )
   costs, net
       Total
       non-interest       204,052      748,708       (544,656 )   (72.7  )
       expense
           Income
           (loss)
           before         49,359        (451,732 )     501,091      N.M.
           income tax
           expense
           (benefit)
Income tax expense        17,559       (170,244 )     187,803     N.M.
(benefit)
           Income
           (loss)
           after          31,800        (281,488 )     313,288      N.M.
           income tax
           expense
           (benefit)
   Income
   attributable to        1,826        1,406         420         29.9
   non-controlling
   interest
Net income (loss)
attributable to TCF       29,974       (282,894 )     312,868     N.M.
Financial Corporation
   Preferred stock        4,524        -             4,524       N.M.
   dividends
Net income (loss)
available to common     $ 25,450     $ (282,894 )   $ 308,344     N.M.
stockholders
Net income (loss) per
common share:
   Basic                $ .16         $ (1.78    )   $ 1.94         N.M.
   Diluted                .16           (1.78    )     1.94         N.M.
                                                                             
Dividends declared      $ .05         $ .05          $ -            -
per common share
                                                                             
Average common and
common equivalent
shares outstanding
(in thousands):
       Basic              160,390       158,506        1,884        1.2
       Diluted            161,140       158,506        2,634        1.7
N.M. Not meaningful.
                                                                             

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands, except per-share data)
(Unaudited)
                                                             
                         Three Months Ended March       Change
                         31,
                         2013            2012           $           %
Net income (loss)
attributable to TCF    $ 29,974       $ (282,894 )   $ 312,868    N.M.     %
Financial
Corporation
Other comprehensive
income (loss):
  Reclassification
  adjustment for
  securities gains       -               (76,967  )     76,967      (100.0 )
  included in net
  income
  Unrealized holding
  losses arising
  during the period      (13,829  )      (7,768   )     (6,061  )   (78.0  )
  on securities
  available for sale
  Foreign currency       537             (404     )     941         N.M.
  hedge
  Foreign currency
  translation            (622     )      385            (1,007  )   N.M.
  adjustment
  Recognized
  postretirement
  prior service cost     (12      )      (7       )     (5      )   (71.4  )
  and transition
  obligation
  Income tax benefit     5,019          31,208        (26,189 )   (83.9  )
      Total other
      comprehensive      (8,907   )      (53,553  )     44,646     83.4
      loss
Comprehensive income   $ 21,067       $ (336,447 )   $ 357,514    N.M.
(loss)
                                                                             
N.M. Not meaningful.
                                                                             

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per-share data)
(Unaudited)
                                                               
                        At Mar. 31       At Dec. 31       Change
                        2013             2012             $            %
ASSETS
                                                                               
Cash and due from     $ 1,213,747      $ 1,100,347      $ 113,400      10.3    %
banks
Investments             122,070          120,867          1,203        1.0
Securities              677,088          712,091          (35,003  )   (4.9  )
available for sale
Loans and leases        20,217           10,289           9,928        96.5
held for sale
Loans and leases:
  Consumer real         6,418,666        6,674,501        (255,835 )   (3.8  )
  estate
  Commercial            3,334,716        3,405,235        (70,519  )   (2.1  )
  Leasing and           3,185,234        3,198,017        (12,783  )   (.4   )
  equipment finance
  Inventory finance     1,931,363        1,567,214        364,149      23.2
  Auto finance          719,666          552,833          166,833      30.2
  Other loans and       23,701          27,924          (4,223   )   (15.1 )
  leases
    Total loans and     15,613,346       15,425,724       187,622      1.2
    leases
  Allowance for
  loan and lease        (263,596   )     (267,128   )     3,532       1.3
  losses
    Net loans and       15,349,750       15,158,596       191,154      1.3
    leases
Premises and            438,616          440,466          (1,850   )   (.4   )
equipment, net
Goodwill                225,640          225,640          -            -
Other assets            456,898         457,621         (723     )   (.2   )
  Total assets        $ 18,504,026    $ 18,225,917    $ 278,109     1.5
                                                                               
LIABILITIES AND
EQUITY
                                                                               
Deposits:
  Checking            $ 5,051,730      $ 4,834,632      $ 217,098      4.5
  Savings               6,151,147        6,104,104        47,043       .8
  Money market          801,443         820,553         (19,110  )   (2.3  )
    Subtotal            12,004,320       11,759,289       245,031      2.1
  Certificates of       2,295,784       2,291,497       4,287       .2
  deposit
    Total deposits      14,300,104      14,050,786      249,318     1.8
Short-term              3,717            2,619            1,098        41.9
borrowings
Long-term               1,926,794       1,931,196       (4,402   )   (.2   )
borrowings
    Total               1,930,511        1,933,815        (3,304   )   (.2   )
    borrowings
Accrued expenses
and other               373,252         364,673         8,579       2.4
liabilities
    Total               16,603,867      16,349,274      254,593     1.6
    liabilities
Equity:
  Preferred stock,
  par value $.01
  per share,
  30,000,000            263,240          263,240          -            -
  authorized; and
  4,006,900 shares
  issued
  Common stock, par
  value $.01 per
  share,
  280,000,000
  shares                1,639            1,634            5            .3
  authorized;
  163,910,124 and
  163,428,763
  shares issued
  Additional            757,346          750,040          7,306        1.0
  paid-in capital
  Retained
  earnings, subject     894,861          877,445          17,416       2.0
  to certain
  restrictions
  Accumulated other
  comprehensive         3,536            12,443           (8,907   )   (71.6 )
  income
  Treasury stock at
  cost, 42,566          (41,396    )     (41,429    )     33          .1
  shares, and other
      Total TCF
      Financial
      Corporation       1,879,226       1,863,373       15,853      .9
      stockholders'
      equity
  Non-controlling
  interest in           20,933          13,270          7,663       57.7
  subsidiaries
      Total equity      1,900,159       1,876,643       23,516      1.3
      Total
      liabilities     $ 18,504,026    $ 18,225,917    $ 278,109     1.5
      and equity
                                                                               

TCF FINANCIAL CORPORATION AND SUBSIDIARIES                                                                                        
SUMMARY OF CREDIT QUALITY DATA
(Dollars in thousands)
(Unaudited)
                                                                                                      
                      At              At              At              At              At              Change from
                      Mar. 31,        Dec. 31,        Sep. 30,        Jun. 30,        Mar. 31,        Dec. 31,          Mar. 31,
                      2013            2012            2012            2012            2012            2012              2012
Delinquency Data
- Principal
Balances ^(1)
60 days or more:
Consumer real
estate
  First mortgage    $ 66,164        $ 76,020        $ 80,153        $ 86,714        $ 88,092        $ (9,856  )       $ (21,928 )
  lien
  Junior lien         9,674          13,141         13,388         13,967         15,563         (3,467  )         (5,889  )
    Total
    consumer real     75,838          89,161          93,541          100,681         103,655         (13,323 )         (27,817 )
    estate
Commercial            906             2,630           2,652           5,616           3,425           (1,724  )         (2,519  )
Leasing and           2,067           2,568           1,554           1,492           4,919           (501    )         (2,852  )
equipment finance
Inventory finance     156             119             80              206             185             37                (29     )
Auto finance          563             532             305             62              2               31                561
Other                 -              31             22             34             52             (31     )         (52     )
  Subtotal            79,530          95,041          98,154          108,091         112,238         (15,511 )         (32,708 )
Acquired              578            982            1,069          1,483          2,198          (404    )         (1,620  )
portfolios
  Total             $ 80,108       $ 96,023       $ 99,223       $ 109,574      $ 114,436      $ (15,915 )       $ (34,328 )
  delinquencies
                                                                                                                                    
Delinquency Data
- % of Portfolio
^(1)
60 days or more:
Consumer real
estate
  First mortgage      1.67      %     1.88      %     1.93      %     1.93      %     1.93      %     (21     )   bps   (26     )   bps
  lien
  Junior lien         .43             .55             .59             .64             .74             (12     )         (31     )
    Total
    consumer real     1.22            1.38            1.46            1.51            1.55            (16     )         (33     )
    estate
Commercial            .03             .08             .08             .17             .10             (5      )         (7      )
Leasing and           .07             .08             .05             .05             .17             (1      )         (10     )
equipment finance
Inventory finance     .01             .01             .01             .01             .01             -                 -
Auto finance          .08             .10             .08             .02             -               (2      )         8
Other                 -               .12             .09             .13             .20             (12     )         (20     )
  Subtotal            .53             .64             .67             .74             .77             (11     )         (24     )
Acquired              .37             .58             .50             .58             .66             (21     )         (29     )
portfolios
  Total               .52             .64             .67             .73             .77             (12     )         (25     )
  delinquencies
                                                                                                                                    
(1) Excludes
non-accrual loans
and leases.
                      At              At              At              At              At              Change from
                      Mar. 31,        Dec. 31,        Sep. 30,        Jun. 30,        Mar. 31,        Dec. 31,          Mar. 31,
                      2013            2012            2012            2012            2012            2012              2012
Non-Accrual Loans
and Leases
  Non-accrual
  loans and
  leases:
    Consumer real
    estate
      First
      mortgage      $ 186,218       $ 199,631       $ 197,649       $ 122,406       $ 125,895       $ (13,413 )       $ 60,323
      lien
      Junior lien     33,907         35,269         35,936         18,272         23,409         (1,362  )         10,498  
         Total
         consumer     220,125         234,900         233,585         140,678         149,304         (14,775 )         70,821
         real
         estate
    Commercial        108,505         127,746         169,339         150,215         135,677         (19,241 )         (27,172 )
    Leasing and
    equipment         11,695          13,652          15,812          29,429          20,015          (1,957  )         (8,320  )
    finance
    Inventory         1,480           1,487           1,120           1,900           1,109           (7      )         371
    finance
    Auto finance      106             101             -               -               -               5                 106
    Other             1,477          1,571          1,957          2,204          2,838          (94     )         (1,361  )
      Total
      non-accrual   $ 343,388      $ 379,457      $ 421,813      $ 324,426      $ 308,943      $ (36,069 )       $ 34,445  
      loans and
      leases
                                                                                                                                    
  Non-accrual
  loans and
  leases -
  rollforward
    Balance,
    beginning of    $ 379,457       $ 421,813       $ 324,426       $ 308,943       $ 298,311       $ (42,356 )       $ 81,146
    period
      Additions       56,712          88,235          210,916         111,739         85,670          (31,523 )         (28,958 )
      Charge-offs     (24,968 )       (27,657 )       (49,116 )       (28,228 )       (19,683 )       2,689             (5,285  )
      Transfers
      to other        (18,892 )       (17,305 )       (24,632 )       (34,473 )       (25,603 )       (1,587  )         6,711
      assets
      Return to
      accrual         (34,692 )       (55,261 )       (30,300 )       (22,200 )       (21,243 )       20,569            (13,449 )
      status
      Payments        (15,399 )       (30,832 )       (9,652  )       (12,261 )       (9,202  )       15,433            (6,197  )
      received
      Other, net      1,170          464            171            906            693            706              477     
    Balance, end    $ 343,388      $ 379,457      $ 421,813      $ 324,426      $ 308,943      $ (36,069 )       $ 34,445  
    of period
                                                                                                                                    

TCF FINANCIAL CORPORATION AND SUBSIDIARIES
SUMMARY OF CREDIT QUALITY DATA, CONTINUED
(Dollars in thousands)
(Unaudited)
                                                                                                           
                                                                                                                                  
                                                                                                                                  
                                                                                                      Change from
                      Mar 31,         Dec 31,         Sep 30,         Jun 30,         Mar 31,         Dec 31,           Mar 31,
                      2013            2012            2012            2012            2012            2012              2012
Other Real Estate
Owned
  Other real
  estate owned
  ^(1)
    Consumer real   $ 46,404        $ 69,599        $ 85,764        $ 83,176        $ 84,996        $ (23,195 )       $ (38,592 )
    estate
    Commercial        25,359         27,379         34,662         42,700         42,232         (2,020  )         (16,873 )
    real estate
      Total other
      real estate   $ 71,763       $ 96,978       $ 120,426      $ 125,876      $ 127,228      $ (25,215 )       $ (55,465 )
      owned
                                                                                                                                  
  Other real
  estate owned -
  rollforward
    Balance,
    beginning of    $ 96,978        $ 120,426       $ 125,876       $ 127,228       $ 134,898       $ (23,448 )       $ (37,920 )
    period
      Transferred     20,855          18,444          26,097          33,739          25,624          2,411             (4,769  )
      in
      Sales           (40,456 )       (39,528 )       (28,479 )       (29,448 )       (28,601 )       (928    )         (11,855 )
      Writedowns      (5,294  )       (4,614  )       (3,493  )       (6,237  )       (5,267  )       (680    )         (27     )
      Other, net      (320    )       2,250          425            594            574            (2,570  )         (894    )
    Balance, end    $ 71,763       $ 96,978       $ 120,426      $ 125,876      $ 127,228      $ (25,215 )       $ (55,465 )
    of period
                                                                                                                                  
  Ending number
  of properties
  owned
    Consumer real     224             418             425             426             466             (194    )         (242    )
    estate
    Commercial        18             18             26             32             32             -                (14     )
    real estate
      Total           242            436            451            458            498            (194    )         (256    )
                                                                                                                                  
(1) Includes properties owned and foreclosed
properties subject to redemption.
                                                                                                                                  
                                                                                                      Change from
                      Mar 31,         Dec 31,         Sep 30,         Jun 30,         Mar 31,         Dec 31,           Mar 31,
                      2013            2012            2012            2012            2012            2012              2012
Non-Accrual Loans
and Leases and
Other Real Estate
Owned
  Non-accrual
  loans and         $ 221,278       $ 261,796       $ 318,611       $ 324,426       $ 308,943       $ (40,518 )       $ (87,665 )
  leases
  Loans
  discharged in       122,110         117,661         103,202         -               -               4,449            122,110
  bankruptcy ^(1)
  Other real          71,763         96,978         120,426        125,876        127,228        (25,215 )         (55,465 )
  estate owned
    Total
    non-accrual
    loans and       $ 415,151      $ 476,435      $ 542,239      $ 450,302      $ 436,171      $ (61,284 )       $ (21,020 )
    leases and
    other real
    estate owned
                                                                                                                                  
  Percent of
  total loans and
  leases and          2.65      %     3.07      %     3.54      %     2.93      %     2.84      %     (42     ) bps     (19     ) bps
  other real
  estate owned
                                                                                                                                  
(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.


TCF FINANCIAL CORPORATION AND SUBSIDIARIES
SUMMARY OF CREDIT QUALITY DATA, CONTINUED
(Dollars in thousands)
(Unaudited)
                                                                                           
                                                                                                                                 
                                                                                                                                 
Allowance for Loan and Lease Losses
                 At March 31, 2013           At December 31, 2012          At March 31, 2012             Change from
                             % of                          % of                          % of            Dec. 31,       Mar. 31,
                 Balance     Portfolio       Balance       Portfolio       Balance       Portfolio       2012           2012
  Consumer
  real         $ 182,687     2.85      %   $ 182,013       2.73      %   $ 183,825       2.70      %    12       bps   15       bps
  estate
  Commercial     48,556      1.46            51,575        1.51            50,444        1.45            (5     )       1
  Leasing
  and            17,541      .55             21,037        .66             21,537        .69             (11    )       (14    )
  equipment
  finance
  Inventory      8,788       .46             7,569         .48             7,556         .46             (2     )       -
  finance
  Auto           5,390       .75             4,136         .75             1,019         .73             -              2
  finance
  Other          634         2.67            798           2.86            912           3.13            (19    )       (46    )
    Total      $ 263,596     1.69          $ 267,128       1.73          $ 265,293       1.74            (4     )       (5     )
                                                                                                                                 
Net Charge-Offs
                                                                                                         Change from
                             Quarter Ended                                                               Quarter Ended
                             Mar. 31,        Dec.          Sep. 30,        Jun.          Mar. 31,        Dec. 31,       Mar. 31,
                                             31,                           30,
                             2013            2012          2012            2012          2012            2012           2012
  Consumer
  real
  estate
    First
    mortgage               $ 19,907        $ 22,163      $ 40,469        $ 18,369      $ 19,526        $ (2,256 )    $ 381
    lien
    Junior                   10,540          11,757        34,202          16,487        16,162          (1,217 )       (5,622 )
    lien
          Total consumer     30,447          33,920        74,671          34,856        35,688          (3,473 )       (5,241 )
          real estate
  Commercial                 7,849           8,351         20,547          8,455         1,524           (502   )       6,325
  Leasing and equipment      1,210           1,345         7,521           1,173         151             (135   )       1,059
  finance
  Inventory                  355             193           444             225           643             162            (288   )
  finance
  Auto                       836             771           280             81            2               65             834
  finance
  Other                      307             940           991             69            925             (633   )       (618   )
    Total                  $ 41,004        $ 45,520      $ 104,454       $ 44,859      $ 38,933        $ (4,516 )    $ 2,071  
                                                                                                                                 
Net Charge-Offs as a Percentage of Average Loans and Leases
                                                                                                         Change from
                             Quarter Ended ^(1)                                                          Quarter Ended
                             Mar. 31,        Dec.          Sep. 30,        Jun.          Mar. 31,        Dec. 31,       Mar. 31,
                                             31,                           30,
                             2013            2012          2012            2012          2012            2012           2012
  Consumer
  real
  estate
    First
    mortgage                 1.90      %     2.06    %    3.60      %     1.58        % 1.66          % (16    ) bps   24       bps
    lien
    Junior                   1.78            1.99          6.12            3.07          3.03            (21    )       (125   )
    lien
          Total consumer     1.86            2.04          4.44            2.05          2.09            (18    )       (23    )
          real estate
  Commercial                 .94             .97           2.32            .97           .18             (3     )       76
  Leasing and equipment      .15             .17           .95             .15           .02             (2     )       13
  finance
  Inventory                  .08             .05           .12             .06           .22             3              (14    )
  finance
  Auto                       .50             .61           .30             .14           .01             (11    )       49
  finance
  Other                      9.01            N.M.          N.M.            N.M.          N.M.            N.M.           N.M.
    Total                    1.06            1.18          2.74            1.18          1.06            (12    )       -
                                                                                                                                 
(1)
Annualized.
N.M. Not Meaningful.
                                                                                                                                 

<td class="bw*Story too large*
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Dollars in thousands)
(Unaudited)
                                                                         
                      Three Months Ended March 31,
                      2013                                 2012
                      Average                Yields        Average                  Yields
                                             and                                    and
                      Balance     Interest   Rates^(1)     Balance       Interest   Rates^(1)
                                             (2)                                    (2)
ASSETS:
Investments and     $ 815,420   $ 3,246      1.61   %    $ 745,861     $ 2,388      1.29   %
other
U.S. Government
sponsored
entities:
  Mortgage-backed
  securities,         674,860     4,794      2.84          2,087,017     19,109     3.66
  fixed-rate
U.S. Treasury         900         -          .07           -             -          -
securities
Other securities      106         1          2.49          230           3          5.24
       Total
       securities
       available      675,866     4,795      2.84          2,087,247     19,112     3.66
       for
       sale^(3)

[TRUNCATED]
 
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