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Press Release

TCF Reports 2008 Earnings Per Share of $1.01

Company Release - 1/22/2009 8:31 AM ET

WAYZATA, Minn.--(BUSINESS WIRE)-- TCF Financial Corporation (NYSE: TCB):

2008 YEAR END HIGHLIGHTS

    --  Diluted earnings per common share of $1.01
    --  Net income of $129 million
    --  Net interest margin of 3.91 percent
    --  Average loans and leases increased by $1.2 billion, or 10.2 percent
    --  Allowance for loan and lease losses increased to 1.29 percent
    --  Issued $361.2 million of senior perpetual preferred stock to the U.S.
        Treasury
    --  Capital ratios exceed stated well capitalized requirements
    --  Declared regular quarterly cash dividend of 25 cents per common share,
        payable February 27, 2009

Earnings Summary                                 Table 1

($ in thousands, except per-share data)          Percent Change

              4Q          3Q          4Q         4Q08 vs   4Q08 vs   YTD          YTD          Percent

              2008        2008        2007       3Q08      4Q07      2008         2007         Change

Net income    $ 27,704    $ 30,126    $62,817    (8.0  )%  (55.9 )%  $ 128,958    $ 266,808    (51.7 )%

Net income
available to    25,164      30,126    62,817     (16.5 )   (59.9 )     126,418      266,808    (52.6 )
common
stockholders

Diluted
earnings per    .20         .24       .50        (16.7 )   (60.0 )     1.01         2.12       (52.4 )
common share

Financial
Ratios (1)

Return on
average         .68    %    .73    %  1.60    %                        .79     %    1.76    %
assets

Return on
average         9.00        11.11     23.55                            11.46        25.82
common
equity

Net interest    3.84        3.97      3.83                             3.91         3.94
margin

Net
charge-offs
as a
percentage      1.02        .82       .46                              .78          .30
of average
loans and
leases

(1)
Annualized



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

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

Chairman's Statement

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

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

 Total Revenue                                        Table 2

                                                      Percent Change

 ($ in         4Q           3Q           4Q           4Q08       4Q08 vs   YTD            YTD            Percent
 thousands)                                           vs

               2008         2008         2007         3Q08       4Q07      2008           2007           Change

 Net interest  $ 147,117    $ 152,165    $ 139,571    (3.3   )%  5.4    %  $ 593,673      $ 550,177      7.9    %
 income

 Fees and
 other
 revenue:

 Fees and
 service         67,448       71,783       72,331     (6.0   )   (6.8   )    270,739        278,046      (2.6   )
 charges

 Card revenue    25,243       26,240       25,058     (3.8   )   .7          103,082        98,880       4.2

 ATM revenue     7,688        8,720        8,306      (11.8  )   (7.4   )    32,645         35,620       (8.4   )

 Investments
 and             -            3,193        2,736      (100.0 )   (100.0 )    9,405          10,318       (8.8   )
 insurance

 Total           100,379      109,936      108,431    (8.7   )   (7.4   )    415,871        422,864      (1.7   )
 banking fees

 Leasing and
 equipment       16,298       13,006       14,841     25.3       9.8         55,488         59,151       (6.2   )
 finance

 Other           130          103          1,573      26.2       (91.7  )    2,702          8,270        (67.3  )

 Total fees
 and other       116,807      123,045      124,845    (5.1   )   (6.4   )    474,061        490,285      (3.3   )
 revenue

 Gains on        8,167        498          11,261     N.M.       (27.5  )    16,066         13,278       21.0
 securities

 Visa share      -            -            -          -          -           8,308          -            100.0
 redemption

 Gains on
 sales of        -            -            2,752      -          (100.0 )    -              37,894       (100.0 )
 branches and
 real estate

 Total
 non-interest    124,974      123,543      138,858    1.2        (10.0  )    498,435        541,457      (7.9   )
 income

 Total         $ 272,091    $ 275,708    $ 278,429    (1.3   )   (2.3   )  $ 1,092,108    $ 1,091,634    -
 revenue

 Net interest    3.84    %    3.97    %    3.83    %                         3.91      %    3.94      %
 margin (1)

 Fees and other revenue as
 a % of:

 Total           42.93        44.63        44.84                             43.41          44.91
 revenue

 Average         2.85         3.00         3.18                              2.90           3.24
 assets (1)

 N.M. = Not
 Meaningful

 (1)
 Annualized



Net Interest Income

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

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

The decrease in net interest margin for 2008 from 2007 is primarily due to funding the growth in interest-earning assets with higher cost deposits and borrowings, partially offset by declines in rates on deposits exceeding declines in yields on interest-earning assets. The decrease in net interest margin in the fourth quarter of 2008 from the third quarter of 2008 was primarily due to increased rates paid on deposits due to competition and declines in yields on Power Assets, partially offset by lower rates paid on borrowings.

Non-interest Income

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

Total fees and other revenue in the fourth quarter of 2008 was $116.8 million, down $8 million, or 6.4 percent, from the fourth quarter of 2007 and down $6.2 million, or 5.1 percent, from the third quarter of 2008. Banking fees and service charges were $67.4 million, down $4.9 million, or 6.8 percent, from the fourth quarter of 2007 and $4.3 million, or 6 percent, from the third quarter of 2008 primarily due to lower activity in deposit service fees. Card revenues totaled $25.2 million for the fourth quarter of 2008, up $185 thousand, or .7 percent, over the same period in 2007 and down $997 thousand, or 3.8 percent, from the third quarter of 2008. The decline in card revenue from the third quarter of 2008 was primarily due to lower average transaction amounts and volumes. ATM revenue was $7.7 million, down $618 thousand, or 7.4 percent, from the fourth quarter of 2007 and $1 million, or 11.8 percent from the third quarter of 2008. Investments and insurance revenues declined $2.7 million from the fourth quarter of 2007 and $3.2 million from the third quarter of 2008 as TCF stopped selling investment and insurance products in the branches during the fourth quarter of 2008.

Branches

 Number of Branches                     Table 3

 At period end

                 Total     New                           Total     New

                 Branches  Branches(1)                   Branches  Branches(1)

 Illinois        206       34               Traditional  197       76

 Minnesota       111       20               Supermarket  236       29

 Michigan        56        20               Campus       15        10

 Colorado        36        29                            448       115

 Wisconsin       27        4

 Arizona         7         7

 Indiana         5         1

 Total Branches  448       115

 (1) New branches opened since January 1, 2003.



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

Power Assets(R)

 Average Power Assets                               Table 4

                                                    Percentage
                                                    Change

 ($ in       4Q           3Q           4Q           4Q08    4Q08    YTD          YTD          YTD
 thousands)                                         vs      vs

             2008         2008         2007         3Q08    4Q07    2008         2007         %

 Loans and
 leases
 (1):

 Consumer
 home
 equity

 First
 mortgage    $ 4,403,503  $ 4,396,754  $ 4,112,086  .2   %  7.1  %  $ 4,347,025  $ 3,953,442  10.0 %
 lien

 Junior      2,423,873    2,434,392    2,299,461    (.4  )  5.4     2,411,502    2,190,988    10.1
 lien

 Total
 consumer    6,827,376    6,831,146    6,411,547    (.1  )  6.5     6,758,527    6,144,430    10.0
 home
 equity

 Consumer    43,619       45,939       45,294       (5.1 )  (3.7 )  45,013       43,589       3.3
 other

 Total       6,870,995    6,877,085    6,456,841    (.1  )  6.4     6,803,540    6,188,019    9.9
 consumer

 Commercial
 real        2,895,935    2,776,830    2,445,012    4.3     18.4    2,724,507    2,386,022    14.2
 estate

 Commercial  522,636      544,826      574,881      (4.1 )  (9.1 )  535,147      563,218      (5.0 )
 business

 Total       3,418,571    3,321,656    3,019,893    2.9     13.2    3,259,654    2,949,240    10.5
 commercial

 Leasing
 and         2,389,225    2,300,429    2,005,889    3.9     19.1    2,265,391    1,915,790    18.2
 equipment
 finance

 Inventory   158          -            -            N.M.    N.M.    40           -            N.M.
 finance

 Total
 Power       $12,678,949  $12,499,170  $11,482,623  1.4     10.4    $12,328,625  $11,053,049  11.5
 Assets

 (1) Excludes residential real estate loans, education loans held for sale and operating lease
 receivables.



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

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

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

Power Liabilities(R)

 Average Power Liabilities                       Table 5

                                                                Percentage Change

 ($ in thousands)  4Q             3Q             4Q             4Q08 vs  4Q08 vs   YTD            YTD            Percent

                   2008           2008           2007           3Q08     4Q07      2008           2007           Change

 Non-interest bearing deposits:

 Retail            $ 1,345,832    $ 1,409,855    $ 1,348,202    (4.5 )%  (.2   )%  $ 1,320,951    $ 1,444,125    (8.5  )%

 Small business      593,626        597,894        600,491      (.7  )   (1.1  )     583,611        594,979      (1.9  )

 Commercial and      234,045        253,900        201,161      (7.8 )   16.3        231,903        199,432      16.3
 custodial

 Total
 non-interest        2,173,503      2,261,649      2,149,854    (3.9 )   1.1         2,136,465      2,238,536    (4.6  )
 bearing

 Interest-bearing deposits:

 Premier checking    850,059        933,189        1,026,408    (8.9 )   (17.2 )     945,097        1,054,542    (10.4 )

 Other checking      904,052        904,351        816,512      -        10.7        885,264        824,791      7.3

 Subtotal            1,754,111      1,837,540      1,842,920    (4.5 )   (4.8  )     1,830,361      1,879,333    (2.6  )

 Premier savings     1,397,516      1,403,323      1,353,638    (.4  )   3.2         1,448,123      1,184,756    22.2

 Other savings       1,450,322      1,388,236      1,229,808    4.5      17.9        1,451,698      1,279,577    13.5

 Subtotal            2,847,838      2,791,559      2,583,446    2.0      10.2        2,899,821      2,464,333    17.7

 Money market        625,198        629,905        598,483      (.7  )   4.5         613,543        604,767      1.5

 Subtotal            5,227,147      5,259,004      5,024,849    (.6  )   4.0         5,343,725      4,948,433    8.0

 Certificates of     2,448,815      2,469,327      2,307,411    (.8  )   6.1         2,472,357      2,461,055    .5
 deposit

 Total               7,675,962      7,728,331      7,332,260    (.7  )   4.7         7,816,082      7,409,488    5.5
 interest-bearing

 Power             $ 9,849,465    $ 9,989,980    $ 9,482,114    (1.4 )   3.9       $ 9,952,547    $ 9,648,024    3.2
 Liabilities

 Average rate on     1.51      %    1.34      %    2.29      %                       1.58      %    2.39      %
 deposits



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

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

Non-interest Expense

 Non-interest Expense                               Table 6

                                                   Percent Change

 (in thousands)                                    4Q08 vs    4Q08 vs                             Percent

                  4Q 2008    3Q 2008    4Q 2007    3Q08       4Q07        2008         2007       Change

 Compensation
 and employee     $ 83,323   $ 84,895   $ 86,555    (1.9  )%  (3.7   )%   $ 341,203    $ 346,468  (1.5   )%
 benefits

 Occupancy and      32,503     31,832     30,818    2.1       5.5           127,953      120,824  5.9
 equipment

 Deposit account    5,659      7,292      572       (22.4 )   N.M.          16,888       4,849    N.M.
 premiums

 Advertising and    4,644      5,017      4,060     (7.4  )   14.4          19,150       16,830   13.8
 promotions

 Operating lease    4,269      4,215      4,521     1.3       (5.6   )      17,458       17,588   (0.7   )
 depreciation

 Other              49,412     44,337     38,391    11.4      28.7          175,517      147,869  18.7

 Subtotal           179,810    177,588    164,917   1.3       9.0           698,169      654,428  6.7

 Visa               -          -          7,696     -         (100.0 )      (3,766  )    7,696    (148.9 )
 indemnification

 Total
 non-interest     $ 179,810  $ 177,588  $ 172,613   1.3       4.2         $ 694,403    $ 662,124  4.9
 expense



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

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

Credit Quality

 Credit Quality                            Table 7
 Summary

                                                        Percent Change

 (in thousands)  4Q           3Q           4Q           4Q08    4Q08 vs  YTD           YTD          %
                                                        vs

                 2008         2008         2007         3Q08    4Q07     2008          2007         Chg

 Allowance for
 loan and lease
 losses

 Balance at
 beginning of    $ 158,978    $ 133,637    $ 74,632     19.0 %  113.0 %  $ 80,942      $ 58,543     38.3  %
 period

 Charge-offs       (37,100 )    (29,976 )    (17,771 )  23.8    108.8      (114,800 )    (52,421 )  119.0

 Recoveries        3,514        3,212        3,957      9.4     (11.2 )    14,255        17,828     (20.0 )

 Net               (33,586 )    (26,764 )    (13,814 )  25.5    143.1      (100,545 )    (34,593 )  190.7
 charge-offs

 Provision for     47,050       52,105       20,124     (9.7 )  133.8      192,045       56,992     N.M.
 credit losses

 Balance at end  $ 172,442    $ 158,978    $ 80,942     8.5     113.0    $ 172,442     $ 80,942     113.0
 of period

 Allowance as a
 percentage of
 period end        1.29    %    1.21    %    .66     %                     1.29     %    .66     %
 loans and
 leases

 Ratio of
 allowance to
 net             1.3X         1.5X         1.5X                          1.7X          2.3X
 charge-offs
 (1)

 Net
 Charge-offs as
 a Percentage
 of Average
 Loans and
 Leases (1)

 Consumer home
 equity:

 First mortgage    .87     %    .77     %    .30     %                     .66      %    .24     %
 lien

 Junior lien       1.76         1.56         .62                           1.34          .50

 Total home        1.19         1.05         .42                           .90           .33
 equity

 Total consumer    1.37         1.23         .56                           1.04          .43

 Commercial        .41          .39          .33                           .44           .10
 real estate

 Commercial        2.01         .05          .30                           1.05          .22
 business

 Leasing and
 equipment         .64          .42          .45                           .50           .20
 finance

 Inventory         -            -            -                             -             -
 finance

 Residential       .52          .31          .05                           .25           .04
 real estate

 Total             1.02         .82          .46                           .78           .30

 Other Credit
 Quality Data

 Delinquencies
 (2)

 30+days         $ 149,284    $ 142,125    $ 82,577     5.0     80.8

 90+days         $ 37,619     $ 34,808     $ 15,384     8.1     144.5

 Delinquencies
 as a
 percentage of
 loan and lease
 portfolio (2):

 30+days           1.13    %    1.10    %    .67     %

 90+days           .28     %    .27     %    .12     %

 Non-accrual
 loans and       $ 172,518    $ 145,890    $ 59,854     18.3    188.2
 leases

 Real estate       61,665       54,179       45,765     13.8    34.7
 owned

 Total
 non-performing  $ 234,183    $ 200,069    $ 105,619    17.1    121.7
 assets

 Non-performing
 assets as a
 percentage of     1.78    %    1.55    %    .86     %
 net loans and
 leases

 N.M. = Not
 Meaningful

 (1) Annualized

 (2) Excludes non-accrual loans and leases



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

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

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

At December 31, 2008, TCF's over-30-day delinquency rate was 1.13 percent, up from 1.10 percent at September 30, 2008. TCF's over-90-day delinquency rate was .28 percent, up slightly from .27 percent at September 30, 2008. Total non-performing assets were $234.2 million, or 1.40 percent of total assets, at December 31, 2008, up from $200.1 million, or 1.21 percent of total assets, at September 30, 2008. The increase in non-performing assets from September 30, 2008 was primarily due to a $16.7 million increase in consumer home equity non-accrual loans, a $6.3 million increase in commercial non-accrual loans, and a $7.5 million increase in real estate owned.

Income Taxes

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

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

Capital

 Capital Information                                     Table 8

 At period end

 ($ in thousands, except
 per-share data)               4Q                        4Q

                               2008                      2007



 Stockholders' equity          $ 1,493,776               $ 1,099,012

 Stockholders' equity to         8.92      %               6.88      %
 total assets

 Book value per common share   $ 8.99                    $ 8.68

 Risk-based capital

 Tier 1                        $ 1,461,973    11.79 %    $ 964,467      8.28  %

 Total                           1,817,225    14.65        1,245,808    10.70

 Total stated
 "well-capitalized"              1,240,147    10.00        1,164,829    10.00
 requirement

 Excess over stated
 "well-capitalized"              577,078      4.65         80,979       .70
 requirement



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

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

Website Information

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

_______________________________________________________________________________________

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

Forward-looking Information

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

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

                                 Three Months Ended

                                 December 31,              Change

                                 2008         2007         $            %

 Interest income:

  Loans and leases                $ 211,322    $ 215,082   $ (3,760  )  (1.7   )

  Securities available for sale     25,232       29,372      (4,140  )  (14.1  )

  Education loans held for sale     24           3,153       (3,129  )  (99.2  )

  Investments and other             1,224        1,595       (371    )  (23.3  )

   Total interest income            237,802      249,202     (11,400 )  (4.6   )

 Interest expense:

  Deposits                          37,362       54,788      (17,426 )  (31.8  )

  Borrowings                        53,323       54,843      (1,520  )  (2.8   )

   Total interest expense           90,685       109,631     (18,946 )  (17.3  )

        Net interest income         147,117      139,571     7,546      5.4

 Provision for credit losses        47,050       20,124      26,926     133.8

   Net interest income after        100,067      119,447     (19,380 )  (16.2  )
   provision for credit losses

 Non-interest income:

  Fees and service charges          67,448       72,331      (4,883  )  (6.8   )

  Card revenue                      25,243       25,058      185        .7

  ATM revenue                       7,688        8,306       (618    )  (7.4   )

  Investments and insurance         -            2,736       (2,736  )  (100.0 )
  revenue

   Subtotal                         100,379      108,431     (8,052  )  (7.4   )

  Leasing and equipment finance     16,298       14,841      1,457      9.8

  Other                             130          1,573       (1,443  )  (91.7  )

   Fees and other revenue           116,807      124,845     (8,038  )  (6.4   )

  Gains on securities               8,167        11,261      (3,094  )  (27.5  )

  Gains on sales of branches        -            2,752       (2,752  )  (100.0 )
  and real estate

   Total non-interest income        124,974      138,858     (13,884 )  (10.0  )

 Non-interest expense:

  Compensation and employee         83,323       86,555      (3,232  )  (3.7   )
  benefits

  Occupancy and equipment           32,503       30,818      1,685      5.5

  Deposit account premiums          5,659        572         5,087      N.M.

  Advertising and promotions        4,644        4,060       584        14.4

  Operating lease depreciation      4,269        4,521       (252    )  (5.6   )

  Other                             49,412       46,087      3,325      7.2

   Total non-interest expense       179,810      172,613     7,197      4.2

        Income before income        45,231       85,692      (40,461 )  (47.2  )
        tax expense

 Income tax expense                 17,527       22,875      (5,348  )  (23.4  )

        Net income                  27,704       62,817      (35,113 )  (55.9  )

 Preferred stock dividends          2,540        -           2,540      N.M.

   Net income available to        $ 25,164     $ 62,817    $ (37,653 )  (59.9  )
   common stockholders

 Net income per common share:

  Basic                           $ .20        $ .51       $ (.31    )  (60.8  )

  Diluted                           .20          .50         (.30    )  (60.0  )

 Dividends declared per common    $ .2500      $ .2425     $ .0075      3.1
 share

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

   Basic                            125,345      124,058     1,287      1.0

   Diluted                          125,733      124,927     806        .6

 N.M. Not meaningful



TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

                             Year Ended

                            December 31,              Change

                            2008         2007         $                %

 Interest income:

  Loans and leases           $ 842,157    $ 836,953    $ 5,204         .6

  Securities available for     110,946      109,581      1,365         1.2
  sale

  Education loans held for     5,355        13,252       (7,897   )    (59.6  )
  sale

  Investments and other        5,937        8,237        (2,300   )    (27.9  )

   Total interest income       964,395      968,023      (3,628   )    (.4    )

 Interest expense:

  Deposits                     156,774      230,625      (73,851  )    (32.0  )

  Borrowings                   213,948      187,221      26,727        14.3

   Total interest expense      370,722      417,846      (47,124  )    (11.3  )

    Net interest income        593,673      550,177      43,496        7.9

 Provision for credit          192,045      56,992       135,053       N.M.
 losses

   Net interest income
   after provision for         401,628      493,185      (91,557  )    (18.6  )
   credit losses

 Non-interest income:

  Fees and service charges     270,739      278,046      (7,307   )    (2.6   )

  Card revenue                 103,082      98,880       4,202         4.2

  ATM revenue                  32,645       35,620       (2,975   )    (8.4   )

  Investments and              9,405        10,318       (913     )    (8.8   )
  insurance revenue

   Subtotal                    415,871      422,864      (6,993   )    (1.7   )

  Leasing and equipment        55,488       59,151       (3,663   )    (6.2   )
  finance

  Other                        2,702        8,270        (5,568   )    (67.3  )

   Fees and other revenue      474,061      490,285      (16,224  )    (3.3   )

  Gains on securities          16,066       13,278       2,788         N.M.

  Visa share redemption        8,308        -            8,308         N.M.

  Gains on sales of            -            37,894       (37,894  )    (100.0 )
  branches and real estate

   Total non-interest          498,435      541,457      (43,022  )    (7.9   )
   income

 Non-interest expense:

  Compensation and             341,203      346,468      (5,265   )    (1.5   )
  employee benefits

  Occupancy and equipment      127,953      120,824      7,129         5.9

  Deposit account premiums     16,888       4,849        12,039        N.M.

  Advertising and              19,150       16,830       2,320         13.8
  promotions

  Operating lease              17,458       17,588       (130     )    (.7    )
  depreciation

  Other                        171,751      155,565      16,186        10.4

   Total non-interest          694,403      662,124      32,279        4.9
   expense

    Income before income       205,660      372,518      (166,858 )    (44.8  )
    tax expense

 Income tax expense            76,702       105,710      (29,008  )    (27.4  )

    Net income                 128,958      266,808      (137,850 )    (51.7  )

 Preferred stock dividends     2,540        -            2,540         N.M.

   Net income available to   $ 126,418    $ 266,808    $ (140,390 )    (52.6  )
   common stockholders

 Net income per common
 share:

  Basic                      $ 1.01       $ 2.13       $ (1.12    )    (52.6  )

  Diluted                      1.01         2.12         (1.11    )    (52.4  )

 Dividends declared per      $ 1.00       $ .97        $ .03           3.1
 common share

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

   Basic                       124,943      125,398      (455     )    (.4    )

   Diluted                     125,309      125,831      (522     )    (.4    )

 N.M. Not meaningful



TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

                           At                At

                           December 31,      December 31,      Change

                          2008              2007               $             %

 ASSETS

 Cash and due from banks   $ 342,380         $ 358,188         (15,808   )   (4.4   )

 Investments                 155,725           148,253         7,472         5.0

 Securities available        1,966,104         1,963,681       2,423         .1
 for sale

 Education loans held        757               156,135         (155,378  )   (99.5  )
 for sale

 Loans and leases:

  Consumer home equity       6,908,140         6,590,631       317,509       4.8
  and other

  Commercial real estate     2,984,156         2,557,330       426,826       16.7

  Commercial business        506,887           558,325         (51,438   )   (9.2   )

  Leasing and equipment      2,486,082         2,104,343       381,739       18.1
  finance

  Inventory finance          4,425             -               4,425         -

   Subtotal                  12,889,690        11,810,629      1,079,061     9.1

  Residential real           455,443           527,607         (72,164   )   (13.7  )
  estate

   Total loans and           13,345,133        12,338,236      1,006,897     8.2
   leases

  Allowance for loan and     (172,442   )      (80,942    )    (91,500   )   (113.0 )
  lease losses

   Net loans and leases      13,172,691        12,257,294      915,397       7.5

 Premises and equipment,     447,826           438,452         9,374         2.1
 net

 Goodwill                    152,599           152,599         -             -

 Other assets                502,275           502,452         (177      )   -

           Total assets    $ 16,740,357      $ 15,977,054      763,303       4.8

 LIABILITIES AND
 STOCKHOLDERS' EQUITY

 Deposits:

  Checking                 $ 3,969,768       $ 4,108,527       (138,759  )   (3.4   )

  Savings                    3,057,623         2,636,820       420,803       16.0

  Money market               619,678           576,667         43,011        7.5

   Subtotal                  7,647,069         7,322,014       325,055       4.4

  Certificates of            2,596,283         2,254,535       341,748       15.2
  deposit

   Total deposits            10,243,352        9,576,549       666,803       7.0

 Short-term borrowings       226,861           556,070         (329,209  )   (59.2  )

 Long-term borrowings        4,433,913         4,417,378       16,535        .4

   Total borrowings          4,660,774         4,973,448       (312,674  )   (6.3   )

 Accrued expenses and        342,455           328,045         14,410        4.4
 other liabilities

   Total liabilities         15,246,581        14,878,042      368,539       2.5

 Stockholders' equity:

  Preferred stock, par
  value $.01 per share,      348,437           -               348,437       N.M.
  30,000,000 authorized;
  361,172 issued

  Common stock, par
  value $.01 per share,
  280,000,000 shares
  authorized;                1,308             1,315           (7        )   (.5    )
  130,839,378 and
  131,468,699 shares
  issued

  Additional paid-in         330,474           354,563         (24,089   )   (6.8   )
  capital

  Retained earnings,
  subject to certain         927,893           926,875         1,018         .1
  restrictions

  Accumulated other          (3,692     )      (18,055    )    14,363        79.6
  comprehensive loss

  Treasury stock at
  cost, 3,413,855 and        (110,644   )      (165,686   )    55,042        33.2
  4,866,480 shares, and
  other

           Total
           stockholders'     1,493,776         1,099,012       394,764       35.9
           equity

           Total
           liabilities
           and             $ 16,740,357      $ 15,977,054      763,303       4.8
           stockholders'
           equity

 N.M. Not meaningful



TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

Allowance for
loan and lease
losses

                                                                                            Allowance as % of
                                                                                            Portfolio

                  At December 31, 2008    At September 30, 2008    At December 31, 2007     Change from

                  Allowance               Allowance                Allowance                Sep. 30,        Dec. 31,

                  Balance    % of         Balance     % of         Balance     % of         2008            2007
                             Portfolio                Portfolio                Portfolio

 Consumer home    $ 96,479     1.41    %  $ 83,326      1.22    %  $ 30,951      .47     %    19       bps    94       bps
 equity

 Consumer other     2,664      4.31         2,938       4.18         2,059       3.05         13              126

  Total consumer
  home equity       99,143     1.44         86,264      1.25         33,010      .50          19              94
  and other

 Commercial real    39,386     1.32         39,636      1.39         25,891      1.01         (7     )        31
 estate

 Commercial         11,865     2.34         12,575      2.29         7,077       1.27         5               107
 business

 Leasing and
 equipment          20,058     .81          19,136      .82          14,319      .68          (1     )        13
 finance

 Inventory          33         .75          -           -            -           -            75              75
 finance

 Residential        1,957      .43          1,367       .29          645         .12          14              31
 real estate

  Total           $ 172,442    1.29       $ 158,978     1.21       $ 80,942      .66          8               63

Net Charge-Offs              Quarter Ended                                                  Change from

                             Dec. 31,     Sep. 30,    Jun. 30,     Mar. 31,    Dec. 31,     Sep. 30,        Dec. 31,

                             2008         2008        2008         2008        2007         2008            2007

 Consumer home
 equity

  First mortgage             $ 9,600      $ 8,476     $ 6,692      $ 4,040     $ 3,130      $ 1,124         $ 6,470
  lien

  Junior lien                  10,664       9,469       7,205        4,973       3,585        1,195           7,079

   Total
   consumer home               20,264       17,945      13,897       9,013       6,715        2,319           13,549
   equity

 Consumer other                3,303        3,282       1,525        1,195       2,379        21              924

  Total consumer
  home equity                  23,567       21,227      15,422       10,208      9,094        2,340           14,473
  and other

 Commercial real               2,958        2,694       5,736        466         1,987        264             971
 estate

 Commercial                    2,631        65          2,308        597         430          2,566           2,201
 business

 Leasing and
 equipment                     3,832        2,413       3,071        2,105       2,234        1,419           1,598
 finance

 Inventory                     -            -           -            -           -            -               -
 finance

 Residential                   598          365         111          171         69           233             529
 real estate

  Total                      $ 33,586     $ 26,764    $ 26,648     $ 13,547    $ 13,814     $ 6,822         $ 19,772

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

                             Quarter Ended(1)                                               Change from

                             Dec. 31,     Sep. 30,    Jun. 30,     Mar. 31,    Dec. 31,     Sep. 30,        Dec. 31,

                             2008         2008        2008         2008        2007         2008            2007

 Consumer home
 equity

  First mortgage               .87     %    .77     %   .61     %    .38     %   .30     %    10       bps    57       bps
  lien

  Junior                       1.76         1.56        1.19         .84         .62          20              114
  lien

   Total
   consumer home               1.19         1.05        .82          .55         .42          14              77
   equity

 Total                         1.37         1.23        .90          .62         .56          14              81
 consumer

 Commercial real               .41          .39         .86          .07         .33          2               8
 estate

 Commercial                    2.01         .05         1.74         .44         .30          196             171
 business

 Leasing and
 equipment                     .64          .42         .55          .39         .45          22              19
 finance

 Inventory                     -            -           -            -           -            -               -
 finance

 Residential                   .52          .31         .09          .13         .05          21              47
 real estate

  Total                        1.02         .82         .84          .44         .46          20              56

Non-performing               At           At          At           At          At           Change from
assets

                             Dec. 31,     Sep. 30,    Jun. 30,     Mar. 31,    Dec. 31,     Sep. 30,        Dec. 31,

                             2008         2008        2008         2008        2007         2008            2007

 Non-accrual
 loans and
 leases:

  Consumer home
  equity

   First                     $ 65,908     $ 48,603    $ 39,780     $ 28,412    $ 20,776     $ 17,305        $ 45,132
   mortgage lien

   Junior lien                 11,793       12,433      9,654        7,434       5,391        (640   )        6,402

        Total
        consumer               77,701       61,036      49,434       35,846      26,167       16,665          51,534
        home
        equity

  Consumer other               65           78          287          13          6            (13    )        59

   Total
   consumer home               77,766       61,114      49,721       35,859      26,173       16,652          51,593
   equity and
   other

  Commercial                   54,615       46,011      38,404       34,300      19,999       8,604           34,616
  real estate

  Commercial                   14,088       16,356      1,306        2,350       2,658        (2,268 )        11,430
  business

  Leasing and
  equipment                    20,879       18,379      12,820       10,726      8,050        2,500           12,829
  finance

  Inventory                    -            -           -            -           -            -               -
  finance

  Residential                  5,170        4,030       2,996        2,991       2,974        1,140           2,196
  real estate

   Total
   non-accrual                 172,518      145,890     105,247      86,226      59,854       26,628          112,664
   loans and
   leases

 Other real
 estate owned:

  Residential                  38,632       34,101      35,269       30,415      28,752       4,531           9,880
  real estate

  Commercial                   23,033       20,078      19,843       17,400      17,013       2,955           6,020
  real estate

   Total other
   real estate                 61,665       54,179      55,112       47,815      45,765       7,486           15,900
   owned

  Total
  non-performing             $ 234,183    $ 200,069   $ 160,359    $ 134,041   $ 105,619    $ 34,114        $ 128,564
  assets

 Non-performing
 assets as a
 percentage of                 1.78    %    1.55    %   1.25    %    1.07    %   .86     %    23       bps    92       bps
 net loans and
 leases

(1)
Annualized



TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

Delinquency data -
principal balances
(1)

                    At          At          At          At          At         Change from

                    Dec. 31,    Sep. 30,    Jun. 30,    Mar. 31,    Dec. 31,   Sep. 30,        Dec. 31,

                    2008        2008        2008        2008        2007       2008            2007

     30 days
     or more:

     Consumer
     home equity

      First
      mortgage      $ 81,654    $ 70,393    $ 51,081    $ 50,097    $ 31,784   $ 11,261        $ 49,870
      lien

      Junior          24,086      20,074      14,818      15,378      12,289     4,012           11,797
      lien

       Total
       consumer       105,740     90,467      65,899      65,475      44,073     15,273          61,667
       home equity

     Consumer         666         515         437         342         377        151             289
     other

      Total
      consumer home   106,406     90,982      66,336      65,817      44,450     15,424          61,956
      equity and
      other

     Commercial       3,199       15,732      17,877      7,888       11,382     (12,533 )       (8,183  )
     real estate

     Commercial       874         531         2,167       527         1,071      343             (197    )
     business

     Leasing and
     equipment        28,901      24,982      21,982      19,956      15,691     3,919           13,210
     finance

     Inventory        -           -           -           -           -          -               -
     finance

     Residential      9,904       9,898       12,461      10,149      9,983      6               (79     )
     real estate

      Total 30
      days or       $ 149,284   $ 142,125   $ 120,823   $ 104,337   $ 82,577   $ 7,159         $ 66,707
      more

      Total 90 days
      or more and   $ 37,619    $ 34,808    $ 28,180    $ 23,538    $ 15,384   $ 2,811         $ 22,235
      still
      accruing

Delinquency data -
% of portfolio(1)

                    At          At          At          At          At         Change from

                    Dec. 31,    Sep. 30,    Jun. 30,    Mar. 31,    Dec. 31,   Sep. 30,        Dec. 31,

                    2008        2008        2008        2008        2007       2008            2007

     30 days
     or more:

     Consumer
     home equity

      First
      mortgage        1.87    %   1.62    %   1.17    %   1.17    %   .76    %   25        bps   111       bps
      lien

      Junior          1.00        .83         .61         .64         .53        17              47
      lien

       Total
       consumer       1.56        1.34        .97         .98         .68        22              88
       home equity

     Consumer         1.08        .73         .64         .55         .56        35              52
     other

      Total
      consumer home   1.56        1.33        .97         .98         .68        23              88
      equity and
      other

     Commercial       .11         .56         .66         .31         .45        (45     )       (34     )
     real estate

     Commercial       .18         .10         .39         .10         .19        8               (1      )
     business

     Leasing and
     equipment        1.17        1.08        .98         .92         .75        9               42
     finance

     Inventory        -           -           -           -           -          -               -
     finance

     Residential      2.20        2.12        2.58        2.02        1.90       8               30
     real estate

      Total 30
      days or         1.13        1.10        .94         .83         .67        3               46
      more

      Total 90 days
      or more and     .28         .27         .22         .19         .12        1               16
      still
      accruing

Potential Problem
Loans and Leases
(2)

                    At          At          At          At          At         Change from

                    Dec. 31,    Sep. 30,    Jun. 30,    Mar. 31,    Dec. 31,   Sep. 30,        Dec. 31,

                    2008        2008        2008        2008        2007       2008            2007

     Consumer home  $ 27,423    $ 23,844    $ 24,722    $ 15,120    $ 4,861    $ 3,579         $ 22,562
     equity(3)

     Commercial       137,332     100,028     100,288     36,172      31,511     37,304          105,821
     real estate

     Commercial       27,127      30,619      49,809      34,787      8,695      (3,492  )       18,432
     business

     Leasing and
     equipment        20,994      17,950      16,967      16,010      15,015     3,044           5,979
     finance

     Inventory        -           -           -           -           -          -               -
     finance

                    $ 212,876   $ 172,441   $ 191,786   $ 102,089   $ 60,082   $ 40,435        $ 152,794

     Excludes
(1)  non-accrual
     loans and
     leases.

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

     Consists of certain
(3)  loans with restructured
     terms.



TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

                         Three Months Ended December 31,

                         2008                               2007

                         Average                  Yields    Average                  Yields
                                                  and                                and

                         Balance       Interest   Rates     Balance       Interest   Rates
                                                  (1)                                (1)

ASSETS

  Investments and other  $ 166,580     $ 1,224    2.93   %  $ 147,058     $ 1,595    4.31   %

  Securities available     1,966,561     25,232   5.13        2,187,068     29,372   5.37
  for sale

  Education loans held     1,876         24       5.09        153,146       3,153    8.17
  for sale

  Loans and leases:

   Consumer home
   equity:

    Fixed-rate             5,033,725     84,904   6.71        4,889,304     85,978   6.98

    Variable-rate          1,793,651     27,044   6.00        1,522,243     30,608   7.98

   Consumer - other        43,619        940      8.57        45,294        1,114    9.76

       Total consumer
       home equity and     6,870,995     112,888  6.54        6,456,841     117,700  7.23
       other

   Commercial real
   estate:

    Fixed- and             2,287,226     35,304   6.14        1,839,817     29,842   6.44
    adjustable-rate

    Variable-rate          608,709       7,456    4.87        605,195       10,814   7.09

       Total commercial    2,895,935     42,760   5.87        2,445,012     40,656   6.60
       real estate

   Commercial business:

    Fixed- and             171,687       2,437    5.65        179,525       2,854    6.31
    adjustable-rate

    Variable-rate          350,949       3,914    4.44        395,356       6,885    6.91

       Total commercial    522,636       6,351    4.83        574,881       9,739    6.72
       business

   Leasing and             2,389,225     42,701   7.15        2,005,889     39,217   7.82
   equipment finance

   Inventory finance       158           4        10.13       -             -        N.A.

    Subtotal               12,678,949    204,704  6.43        11,482,623    207,312  7.17

   Residential real        462,807       6,618    5.71        537,449       7,770    5.77
   estate

    Total loans and        13,141,756    211,322  6.40        12,020,072    215,082  7.11
    leases

                                                  -

       Total
       interest-earning    15,276,773    237,802  6.20        14,507,344    249,202  6.83
       assets

  Other assets             1,130,462                          1,198,428

   Total assets          $ 16,407,235                       $ 15,705,772

LIABILITIES AND STOCKHOLDERS' EQUITY

  Non-interest bearing
  deposits:

   Retail                $ 1,345,832                        $ 1,348,202

   Small business          593,626                            600,491

   Commercial and          234,045                            201,161
   custodial

    Total non-interest     2,173,503                          2,149,854
    bearing deposits

  Interest-bearing
  deposits:

   Premier checking        850,059       2,219    1.04        1,026,408     6,454    2.49

   Other checking          904,052       716      .32         816,512       829      .40

    Subtotal               1,754,111     2,935    .67         1,842,920     7,283    1.57

   Premier savings         1,397,516     9,747    2.77        1,353,638     13,819   4.05

   Other savings           1,450,322     3,255    .89         1,229,808     3,532    1.14

    Subtotal               2,847,838     13,002   1.82        2,583,446     17,351   2.66

   Money market            625,198       2,625    1.67        598,483       4,138    2.74

    Subtotal               5,227,147     18,562   1.41        5,024,849     28,772   2.27

   Certificates of         2,448,815     18,800   3.05        2,307,411     26,016   4.47
   deposit

    Total
    interest-bearing       7,675,962     37,362   1.94        7,332,260     54,788   2.96
    deposits

                                                  -

       Total deposits      9,849,465     37,362   1.51        9,482,114     54,788   2.29

                                                  -

  Borrowings:

   Short-term              454,202       1,102    .97         450,027       5,184    4.57
   borrowings

   Long-term borrowings    4,435,730     52,221   4.69        4,340,891     49,659   4.54

       Total borrowings    4,889,932     53,323   4.34        4,790,918     54,843   4.54

   Total deposits and      14,739,397    90,685   2.45        14,273,032    109,631  3.05
   borrowings

  Other liabilities        366,063                            365,888

   Total liabilities       15,105,460                         14,638,920

  Stockholders' equity     1,301,775                          1,066,852

   Total liabilities
   and stockholders'     $ 16,407,235                       $ 15,705,772
   equity

Net interest income and                $ 147,117  3.84   %                $ 139,571  3.83   %
margin

(1) Annualized



TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

                         Year Ended December 31,

                         2008                               2007

                         Average                  Yields    Average                  Yields
                                                  and                                and

                         Balance       Interest   Rates     Balance       Interest   Rates
                                                  (1)                                (1)

ASSETS

  Investments and other  $ 155,839     $ 5,937    3.81   %  $ 178,012     $ 8,237    4.63   %

  Securities available     2,112,974     110,946  5.25        2,024,563     109,581  5.41
  for sale

  Education loans held     87,877        5,355    6.09        154,516       13,252   8.58
  for sale

  Loans and leases:

   Consumer home
   equity:

    Fixed-rate             5,043,699     343,739  6.82        4,683,745     326,516  6.97

    Variable-rate          1,714,828     109,115  6.36        1,460,685     124,992  8.56

   Consumer - other        45,013        3,877    8.61        43,589        4,307    9.88

       Total consumer
       home equity and     6,803,540     456,731  6.71        6,188,019     455,815  7.37
       other

   Commercial real
   estate:

    Fixed- and             2,127,436     132,014  6.21        1,777,813     114,140  6.42
    adjustable-rate

    Variable-rate          597,071       31,110   5.21        608,209       46,363   7.62

       Total commercial    2,724,507     163,124  5.99        2,386,022     160,503  6.73
       real estate

   Commercial business:

    Fixed- and             168,554       9,988    5.93        169,776       10,853   6.39
    adjustable-rate

    Variable-rate          366,593       18,143   4.95        393,442       28,947   7.36

       Total commercial    535,147       28,131   5.26        563,218       39,800   7.07
       business

   Leasing and             2,265,391     165,838  7.32        1,915,790     147,507  7.70
   equipment finance

   Inventory finance       40            4        10.00       -             -        N.A.

    Subtotal               12,328,625    813,828  6.60        11,053,049    803,625  7.27

   Residential real        488,499       28,329   5.80        574,554       33,328   5.80
   estate

    Total loans and        12,817,124    842,157  6.57        11,627,603    836,953  7.20
    leases

                                                  -

       Total
       interest-earning    15,173,814    964,395  6.36        13,984,694    968,023  6.92
       assets

  Other assets             1,158,536                          1,161,106

   Total assets          $ 16,332,350                       $ 15,145,800

LIABILITIES AND STOCKHOLDERS' EQUITY

  Non-interest bearing
  deposits:

   Retail                $ 1,320,951                        $ 1,444,125

   Small business          583,611                            594,979

   Commercial and          231,903                            199,432
   custodial

    Total non-interest     2,136,465                          2,238,536
    bearing deposits

  Interest-bearing
  deposits:

   Premier checking        945,097       10,533   1.11        1,054,542     30,650   2.91

   Other checking          885,264       2,400    .27         824,791       2,993    .36

    Subtotal               1,830,361     12,933   .71         1,879,333     33,643   1.79

   Premier savings         1,448,123     37,427   2.58        1,184,756     49,994   4.22

   Other savings           1,451,698     11,174   .95         1,279,577     15,062   1.18

    Subtotal               2,899,821     48,601   1.68        2,464,333     65,056   2.64

   Money market            613,543       10,099   1.65        604,767       17,396   2.88

    Subtotal               5,343,725     71,633   1.34        4,948,433     116,095  2.35

   Certificates of         2,472,357     85,141   3.44        2,461,055     114,530  4.65
   deposit

    Total
    interest-bearing       7,816,082     156,774  2.01        7,409,488     230,625  3.11
    deposits

                                                  -

       Total deposits      9,952,547     156,774  1.58        9,648,024     230,625  2.39

                                                  -

  Borrowings:

   Short-term              411,763       8,990    2.18        230,293       11,369   4.94
   borrowings

   Long-term borrowings    4,459,703     204,958  4.60        3,890,054     175,852  4.52

       Total borrowings    4,871,466     213,948  4.39        4,120,347     187,221  4.54

   Total deposits and      14,824,013    370,722  2.50        13,768,371    417,846  3.03
   borrowings

  Other liabilities        359,223                            343,978

   Total liabilities       15,183,236                         14,112,349

  Stockholders' equity     1,149,114                          1,033,451

   Total liabilities
   and stockholders'     $ 16,332,350                       $ 15,145,800
   equity

Net interest income and                $ 593,673  3.91   %                $ 550,177  3.94   %
margin

(1) Annualized



TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME AND FINANCIAL RATIOS

(Dollars in thousands, except per-share data)

(Unaudited)

                     At or For the Three Months Ended

                     Dec. 31,    Sep. 30,    Jun. 30,    Mar. 31,    Dec. 31,

                     2008        2008        2008        2008        2007

Interest income:

 Loans and leases    $ 211,322   $ 210,651   $ 208,407   $ 211,777   $ 215,082

 Securities            25,232      28,577      28,858      28,279      29,372
 available for sale

 Education loans       24          123         1,756       3,452       3,153
 held for sale

 Investments and       1,224       1,644       1,427       1,642       1,595
 other

  Total interest       237,802     240,995     240,448     245,150     249,202
  income

Interest expense:

 Deposits              37,362      33,730      36,954      48,728      54,788

 Borrowings            53,323      55,100      51,932      53,593      54,843

  Total interest       90,685      88,830      88,886      102,321     109,631
  expense

       Net interest    147,117     152,165     151,562     142,829     139,571
       income

Provision for          47,050      52,105      62,895      29,995      20,124
credit losses

  Net interest
  income after         100,067     100,060     88,667      112,834     119,447
  provision for
  credit losses

Non-interest
income:

 Fees and service      67,448      71,783      67,961      63,547      72,331
 charges

 Card revenue          25,243      26,240      26,828      24,771      25,058

 ATM revenue           7,688       8,720       8,267       7,970       8,306

 Investments and       -           3,193       2,977       3,235       2,736
 insurance revenue

  Subtotal             100,379     109,936     106,033     99,523      108,431

 Leasing and           16,298      13,006      14,050      12,134      14,841
 equipment finance

 Other                 130         103         1,421       1,048       1,573

  Fees and other       116,807     123,045     121,504     112,705     124,845
  revenue

 Gains on              8,167       498         1,115       6,286       11,261
 securities

 Visa share            -           -           -           8,308       -
 redemption

 Gains on sales of
 branches and real     -           -           -           -           2,752
 estate

       Total
       non-interest    124,974     123,543     122,619     127,299     138,858
       income

Non-interest
expense:

 Compensation and      83,323      84,895      84,267      88,718      86,555
 employee benefits

 Occupancy and         32,503      31,832      31,205      32,413      30,818
 equipment

 Deposit account       5,659       7,292       2,441       1,496       572
 premiums

 Advertising and       4,644       5,017       4,689       4,800       4,060
 promotions

 Operating lease       4,269       4,215       4,460       4,514       4,521
 depreciation

 Other                 49,412      44,337      41,667      36,335      46,087

  Total
  non-interest         179,810     177,588     168,729     168,276     172,613
  expense

       Income
       before          45,231      46,015      42,557      71,857      85,692
       income tax
       expense

Income tax expense     17,527      15,889      18,855      24,431      22,875

  Net income           27,704      30,126      23,702      47,426      62,817

Preferred stock        2,540       -           -           -           -
dividends

 Net income
 available to        $ 25,164    $ 30,126    $ 23,702    $ 47,426    $ 62,817
 common
 stockholders

Net income per
common share:

 Basic               $ .20       $ .24       $ .19       $ .38       $ .51

 Diluted               .20         .24         .19         .38         .50

Dividends declared   $ .2500     $ .2500     $ .2500     $ .2500     $ .2425
per common share

Financial Ratios:

Return on average      .68     %   .73     %   .58     %   1.18    %   1.60    %
assets(1)

Return on average      9.00        11.11       8.57        17.08       23.55
common equity(1)

Net interest margin    3.84        3.97        4.00        3.84        3.83
(1)

Net charge-offs as
a percentage of        1.02        .82         .84         .44         .46
average loans and
leases(1)

Average total
equity to average      7.93        6.61        6.76        6.88        6.79
assets

(1) Annualized



TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS AND SUPPLEMENTAL INFORMATION

(In thousands)

(Unaudited)

                      Dec. 31,        Sep. 30,        Jun. 30,        Mar. 31,        Dec. 31,

                      2008            2008            2008            2008            2007

ASSETS

Cash and due from     $ 297,252       $ 288,884       $ 280,606       $ 304,441       $ 310,010
banks

Investments and         166,580         157,612         148,366         150,659         147,058
other

Securities available    1,966,561       2,160,887       2,184,580       2,140,951       2,187,068
for sale

Education loans held    1,876           12,516          123,457         215,434         153,146
for sale

Loans and leases:

 Consumer home
 equity:

  Fixed-rate            5,033,725       5,072,689       5,084,761       4,983,410       4,889,304

  Variable-rate         1,793,651       1,758,457       1,702,825       1,603,032       1,522,243

 Consumer - other       43,619          45,939          46,492          44,008          45,294

       Total
       consumer home    6,870,995       6,877,085       6,834,078       6,630,450       6,456,841
       equity and
       other

 Commercial real
 estate:

  Fixed- and            2,287,226       2,181,838       2,062,983       1,975,344       1,839,817
  adjustable-rate

  Variable-rate         608,709         594,992         593,409         591,071         605,195

       Total
       commercial       2,895,935       2,776,830       2,656,392       2,566,415       2,445,012
       real estate

 Commercial
 business:

  Fixed- and            171,687         167,079         157,740         177,691         179,525
  adjustable-rate

  Variable-rate         350,949         377,747         371,730         365,997         395,356

       Total
       commercial       522,636         544,826         529,470         543,688         574,881
       business

 Leasing and            2,389,225       2,300,429       2,229,467       2,140,695       2,005,889
 equipment finance

 Inventory finance      158             -               -               -               -

  Subtotal              12,678,949      12,499,170      12,249,407      11,881,248      11,482,623

 Residential real       462,807         477,436         496,367         517,791         537,449
 estate

  Total loans and       13,141,756      12,976,606      12,745,774      12,399,039      12,020,072
  leases

 Allowance for loan     (160,662   )    (140,362   )    (102,126   )    (84,048    )    (77,072    )
 and lease losses

  Net loans and         12,981,094      12,836,244      12,643,648      12,314,991      11,943,000
  leases

Premises and            447,249         443,185         442,016         440,516         435,426
equipment

Goodwill                152,599         152,599         152,599         152,599         152,599

Other assets            394,024         359,632         398,582         415,462         377,465

                      $ 16,407,235    $ 16,411,559    $ 16,373,854    $ 16,135,053    $ 15,705,772

LIABILITIES AND STOCKHOLDERS' EQUITY

Non-interest-bearing
deposits:

 Retail               $ 1,345,832     $ 1,409,855     $ 1,464,237     $ 1,415,379     $ 1,348,202

 Small business         593,626         597,894         577,510         565,148         600,491

 Commercial and         234,045         253,900         238,779         200,624         201,161
 custodial

  Total non-interest    2,173,503       2,261,649       2,280,526       2,181,151       2,149,854
  bearing deposits

Interest-bearing
deposits:

 Premier checking       850,059         933,189         989,512         1,008,802       1,026,408

 Other checking         904,052         904,351         894,436         837,804         816,512

  Subtotal              1,754,111       1,837,540       1,883,948       1,846,606       1,842,920

 Premier savings        1,397,516       1,403,323       1,518,703       1,473,997       1,353,638

 Other savings          1,450,322       1,388,236       1,365,141       1,251,053       1,229,808

  Subtotal              2,847,838       2,791,559       2,883,844       2,725,050       2,583,446

 Money market           625,198         629,905         609,369         589,392         598,483

  Subtotal              5,227,147       5,259,004       5,377,161       5,161,048       5,024,849

 Certificates of        2,448,815       2,469,327       2,471,216       2,500,362       2,307,411
 deposit

  Total
  interest-bearing      7,675,962       7,728,331       7,848,377       7,661,410       7,332,260
  deposits

       Total            9,849,465       9,989,980       10,128,903      9,842,561       9,482,114
       deposits

Borrowings:

 Short-term             454,202         429,861         363,302         399,023         450,027
 borrowings

 Long-term              4,435,730       4,567,706       4,419,821       4,414,630       4,340,891
 borrowings

  Total borrowings      4,889,932       4,997,567       4,783,123       4,813,653       4,790,918

Accrued expenses and    366,063         339,304         355,187         368,216         365,888
other liabilities

  Total liabilities     15,105,460      15,326,851      15,267,213      15,024,430      14,638,920

Stockholders'
equity:

 Preferred stock        183,981         -               -               -               -

 Common stock           1,309           1,309           1,311           1,312           1,315

 Additional paid-in     328,078         336,127         347,043         351,447         353,365
 capital

 Retained earnings      924,456         927,939         935,184         926,497         901,799

 Accumulated other      (13,896    )    (36,468    )    (19,748    )    (5,715     )    (24,229    )
 comprehensive loss

 Treasury stock at      (122,153   )    (144,199   )    (157,149   )    (162,918   )    (165,398   )
 cost and other

                        1,301,775       1,084,708       1,106,641       1,110,623       1,066,852

                      $ 16,407,235    $ 16,411,559    $ 16,373,854    $ 16,135,053    $ 15,705,772

Supplemental
Information:

Securities available  $ 1,966,561     $ 2,160,887     $ 2,184,580     $ 2,140,951     $ 2,187,068
for sale

Residential real        462,807         477,436         496,367         517,791         537,449
estate loans

 Total securities
 available for sale   $ 2,429,368     $ 2,638,323     $ 2,680,947     $ 2,658,742     $ 2,724,517
 and residential
 real estate loans



TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY YIELDS AND RATES(1)

(Unaudited)

                          Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,

                          2008       2008       2008       2008       2007

ASSETS

  Investments and other   2.93     % 4.16     % 3.86     % 4.38     % 4.31     %

  Securities available    5.13       5.29       5.28       5.28       5.37
  for sale

  Education loans held    5.09       3.91       5.72       6.44       8.17
  for sale

  Loans and leases:

   Consumer home equity:

    Fixed-rate            6.71       6.79       6.82       6.94       6.98

    Variable-rate         6.00       6.19       6.26       7.07       7.98

   Consumer - other       8.57       8.34       8.60       8.96       9.76

       Total consumer
       home equity and    6.54       6.65       6.70       6.98       7.23
       other

   Commercial real
   estate:

    Fixed- and            6.14       6.11       6.21       6.34       6.44
    adjustable-rate

    Variable-rate         4.87       4.97       5.04       5.97       7.09

       Total commercial   5.87       5.88       5.95       6.27       6.60
       real estate

   Commercial business:

    Fixed- and            5.65       5.63       6.20       6.24       6.31
    adjustable-rate

    Variable-rate         4.44       4.59       4.86       5.90       6.91

       Total commercial   4.83       4.91       5.26       6.01       6.72
       business

   Leasing and equipment  7.15       7.14       7.38       7.65       7.82
   finance

   Inventory finance      10.13      -          -          -          -

    Subtotal              6.43       6.49       6.60       6.90       7.17

   Residential real       5.71       5.75       5.86       5.86       5.77
   estate

    Total loans and       6.40       6.47       6.57       6.86       7.11
    leases

       Total
       interest-earning   6.20       6.27       6.35       6.60       6.83
       assets

LIABILITIES

  Interest-bearing
  deposits:

   Premier checking       1.04       .84        .93        1.62       2.49

   Other checking         .32        .22        .23        .32        .40

    Subtotal              .67        .54        .60        1.03       1.57

   Premier savings        2.77       2.16       2.20       3.21       4.05

   Other savings          .89        .73        .70        .96        1.14

    Subtotal              1.82       1.45       1.49       2.18       2.66

   Money market           1.67       1.46       1.45       2.03       2.74

    Subtotal              1.41       1.13       1.17       1.76       2.27

   Certificates of        3.05       3.02       3.47       4.21       4.47
   deposit

    Total
    interest-bearing      1.94       1.74       1.89       2.56       2.96
    deposits

       Total deposits     1.51       1.34       1.47       1.99       2.29

  Borrowings:

   Short-term borrowings  .97        2.13       2.19       3.64       4.57

   Long-term borrowings   4.69       4.60       4.54       4.55       4.54

    Total borrowings      4.34       4.39       4.37       4.48       4.54

       Total
       interest-bearing   2.87       2.77       2.83       3.29       3.59
       liabilities

Net interest margin       3.84     % 3.97     % 4.00     % 3.84     % 3.83     %

(1) Annualized



    Source: TCF Financial Corporation
Contact: TCF Financial Corporation, Wayzata Jason Korstange, 952-745-2755 www.tcfbank.com

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