0000019612-21-000114.txt : 20210422 0000019612-21-000114.hdr.sgml : 20210422 20210422090051 ACCESSION NUMBER: 0000019612-21-000114 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 17 CONFORMED PERIOD OF REPORT: 20210422 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210422 DATE AS OF CHANGE: 20210422 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TCF FINANCIAL CORP CENTRAL INDEX KEY: 0000019612 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 382022454 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-39009 FILM NUMBER: 21843392 BUSINESS ADDRESS: STREET 1: 333 W. FORT STREET STREET 2: SUITE 1800 CITY: DETROIT STATE: MI ZIP: 48226 BUSINESS PHONE: 800-867-9757 MAIL ADDRESS: STREET 1: 333 W. FORT STREET STREET 2: SUITE 1800 CITY: DETROIT STATE: MI ZIP: 48226 FORMER COMPANY: FORMER CONFORMED NAME: CHEMICAL FINANCIAL CORP DATE OF NAME CHANGE: 19920703 8-K 1 tcf-20210422.htm 8-K tcf-20210422
0000019612false00000196122021-04-222021-04-220000019612us-gaap:CommonStockMember2021-04-222021-04-220000019612tcf:DepositarySharesMember2021-04-222021-04-22

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

 FORM 8-K
 
 CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):
April 22, 2021
 tcf-20210422_g1.jpg
 
TCF FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Michigan
001-39009
38-2022454
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer Identification No.)
 333 W. Fort Street, Suite 1800, Detroit, Michigan 48226
(Address of principal executive offices, including Zip Code)
 
(866) 258-1807
(Registrant’s telephone number, including area code)
  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
(Title of each class)
(Trading Symbol(s))
(Name of exchange on which registered)
Common Stock (par value $1 per share)
TCF
The NASDAQ Stock Market
Depositary shares, each representing a 1/1000th interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock
TCFCP
The NASDAQ Stock Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02 Results of Operations and Financial Condition.
 
On April 22, 2021, TCF Financial Corporation (the "Corporation") issued an earnings press release for the quarter ended March 31, 2021. A copy of the press release is attached as Exhibit 99.1 and is incorporated by reference in this Item 2.02.

The information contained in this Item 2.02 and in Exhibit 99.1 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.
 
(d)         Exhibits.
Exhibit No.
Description
99.1
104
Interactive Data File


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
TCF FINANCIAL CORPORATION
/s/ David T. Provost
David T. Provost,
Chief Executive Officer
(Principal Executive Officer)
/s/ Brian W. Maass
Brian W. Maass,
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
/s/ Kathleen S. Wendt
Kathleen S. Wendt,
Executive Vice President and Chief Accounting Officer
(Principal Accounting Officer)
 
Dated:  April 22, 2021


EX-99.1 2 tcf33121form8kex991release.htm EX-99.1 TCF Q12021 EARNINGS RELEASE Document

Exhibit 99.1
tcf063020form8kimagea061a.jpg
NEWS RELEASE
TCF Financial Corporation • 333 West Fort Street, Suite 1800 • Detroit, MI 48226
FOR IMMEDIATE RELEASE
Contact:
  Randi Berris
(248) 608-5239
news@tcfbank.com
(Media)
 Timothy Sedabres
(952) 745-2766
investor@tcfbank.com
(Investors)
TCF REPORTS FIRST QUARTER 2021 RESULTS

First Quarter 2021 Highlights
Quarterly net income of $123.3 million, or $0.79 per diluted share, up 35.0% from the fourth quarter of 2020
Adjusted diluted earnings per common share of $0.84(1), up 12.0% from the fourth quarter of 2020. Adjusted diluted earnings per common share excludes $6.7 million, or $0.04 per share, after-tax impact of merger-related expenses and notable items
Loan and lease balances grew $1.8 billion, or 5.1%, from December 31, 2020. Loan and lease balances, excluding PPP loans(1), grew $1.4 billion, or 4.4%, from December 31, 2020
Deposit balances grew $930 million, or 2.4%, from December 31, 2020
Provision for credit losses of $20.6 million, up 73.9% from the fourth quarter of 2020, primarily reflects loan and lease growth
Allowance for credit losses, which includes the reserve for unfunded lending commitments, of 1.45% of total loans and leases, compared to 1.59% at December 31, 2020
Nonaccrual loans and leases of $677.9 million, relatively stable compared to December 31, 2020
Net charge-offs of $43.3 million, or 0.49% of average loans and leases (annualized)
Efficiency ratio of 67.85%, improved 668 basis points from the fourth quarter of 2020. Adjusted efficiency ratio of 62.69%(1), improved 211 basis points from the fourth quarter of 2020
Common equity Tier 1 capital ratio of 11.06%, compared to 11.45% at December 31, 2020
On January 29, 2021, TCF acquired BB&T Commercial Equipment Capital, Corp. ("CEC"), which included a portfolio of $1.0 billion of equipment finance loans and leases
On March 25, 2021, TCF shareholders approved the announced merger with Huntington Bancshares Incorporated ("Huntington"), which is expected to close in the second quarter of 2021, subject to regulatory approval

Merger-related Expenses and Notable items in the First Quarter of 2021 and Fourth Quarter of 2020(1)
Pre-tax merger-related expenses of $16.2 million, $12.7 million net of tax, or $0.08 per diluted common share for the first quarter of 2021, compared to pre-tax merger-related expenses of $31.5 million, $24.4 million net of tax, or $0.17 per diluted common share for the fourth quarter of 2020
Pre-tax benefit of $7.6 million, $6.0 million net of tax, related to notable items for the first quarter of 2021, compared to pre-tax expenses of $357 thousand, $276 thousand net of tax, related to notable items for the fourth quarter of 2020, see summary of notable items adjustments below

(1)Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables and the following table detailing merger-related expenses and notable items.

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Summary of Financial Results
At or For the Quarter EndedChange From
Mar. 31,Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,Mar. 31,
(Dollars in thousands, except per share data)2021202020202020202020202020
Financial Results
Net income attributable to TCF$123,336 $91,358 $55,738 $23,764 $51,899 35.0 %137.6 %
Net interest income381,827 381,394 377,167 378,359 401,481 0.1 (4.9)
Basic earnings per common share$0.79 $0.58 $0.35 $0.14 $0.33 36.2 139.4 
Diluted earnings per common share0.79 0.58 0.35 0.14 0.32 36.2 146.9 
Return on average assets ("ROAA")(1)
1.03 %0.78 %0.46 %0.21 %0.46 %25 bps57 bps
ROACE(1)
8.78 6.44 3.87 1.56 3.64 234 514 
ROATCE (non-GAAP)(1)(2)
12.51 9.18 5.71 2.57 5.42 333 709 
Net interest margin3.45 3.53 3.31 3.33 3.73 (8)(28)
Net interest margin (FTE)(1)(2)
3.47 3.55 3.34 3.35 3.76 (8)(29)
Net charge-offs as a percentage of average loans and leases(1)
0.49 0.14 0.28 0.04 0.06 35 43 
Nonperforming assets as a percentage of total loans and leases and other real estate owned1.96 2.06 1.20 0.94 0.80 (10)116 
Efficiency ratio67.85 74.53 75.29 78.26 69.57 (668)(172)
Adjusted Financial Results (non-GAAP)
Adjusted net income attributable to TCF(1)(2)
$130,074$116,054$98,696$84,862$89,85512.1 %44.8 %
Adjusted diluted earnings per common
share(2)
$0.84 $0.75 $0.63 $0.54 $0.57 12.0 47.4 
Adjusted ROAA(1)(2)
1.08 %0.99 %0.81 %0.70 %0.78 %bps30 bps
Adjusted ROACE(1)(2)
9.27 8.23 6.99 6.03 6.43 104 284 
Adjusted ROATCE(1)(2)
13.18 11.62 9.96 8.70 9.24 156 394 
Adjusted efficiency ratio(2)
62.69 64.80 61.17 59.80 58.24 (211)445 
(1)Annualized.
(2)Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.

The following table includes merger-related expenses and notable items used to arrive at adjusted net income in the Adjusted Financial Results (non-GAAP) (see "Reconciliation of Non-GAAP Financial Measures" tables).
For the Quarter Ended March 31, 2021
For the Quarter Ended December 31, 2020
(Dollars in thousands, except per share data)
Pre-tax income (loss)
After-tax benefit (loss)(1)
Per SharePre-tax income (loss)
After-tax benefit (loss)(1)
Per Share
Merger-related expenses
$(16,216)$(12,736)$(0.08)$(31,530)(24,420)$(0.17)
Notable items:
Loan servicing rights recovery (impairment)(2)
7,637 5,998 0.04 (357)(276)— 
Total notable items7,637 5,998 0.04 (357)(276)— 
Total merger-related and notable items$(8,579)$(6,738)$(0.04)$(31,887)$(24,696)$(0.17)
(1)Net of tax benefit at our normal tax rate and other tax benefits.
(2)Included within other mortgage banking income.

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DETROIT (April 22, 2021) - TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ: TCF) today reported net income of $123.3 million, or diluted earnings per common share of $0.79, for the first quarter of 2021, compared with $91.4 million, or diluted earnings per common share of $0.58, for the fourth quarter of 2020. Adjusted net income was $130.1 million, or $0.84 per diluted common share for the first quarter of 2021, compared with $116.1 million, or $0.75 per diluted common share, for the fourth quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

“Our first quarter performance was highlighted by strong balance sheet growth as our teams remained focused on taking care of our customers, while we also continued preparing for the closing of our merger with Huntington,” said David T. Provost, chief executive officer. “We were pleased by the overwhelming shareholder approval of the pending merger with Huntington. With the transaction on track to close later in the second quarter of 2021, we look forward to delivering enhanced shareholder value through our greater Midwest market share, increased scale, broader product set, and enhanced technology capabilities and investments.”
“We continued to execute on our business strategy during the quarter as we generated strong loan and lease growth driven by our commercial portfolios,” said Thomas C. Shafer, vice chairman and chief executive officer of TCF National Bank. “This growth included the acquisition of an equipment finance company in January, further bolstering our team of talented and experienced professionals, which we believe will continue to provide incremental growth opportunities going forward. In addition, we saw strong deposit growth driven by noninterest-bearing deposit inflows during the quarter, which helped to further reduce our overall cost of deposits. As we continue to operate our business and serve our customers today, we will be well positioned to transition our business into Huntington when the merger closes.”
Net Interest Income and Net Interest Margin
Net interest income was $381.8 million for the first quarter of 2021, an increase of $0.4 million, or 0.1%, from the fourth quarter of 2020. Purchase accounting accretion and amortization related to the TCF/Chemical merger included in net interest income was $15.0 million for the first quarter of 2021, compared to $23.0 million for the fourth quarter of 2020. At March 31, 2021, the remaining fair value discount from purchase accounting on acquired loans totaled $91.1 million. Additionally, net interest income recorded for the first quarter of 2021 included $17.8 million of interest and fee income from PPP less funding costs, compared to $19.1 million for the fourth quarter of 2020. Adjusted net interest income (FTE), excluding purchase accounting accretion and amortization and the impact from PPP loans, a non-GAAP financial measure, was $351.8 million for the first quarter of 2021, compared to $342.5 million for the fourth quarter of 2020.

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Net interest margin was 3.45% for the first quarter of 2021, compared to 3.53% in the fourth quarter of 2020, while net interest margin on a fully tax-equivalent basis (FTE), a non-GAAP financial measure, was 3.47%, down 8 basis points from the fourth quarter of 2020. Adjusted net interest margin (FTE), a non-GAAP financial measure, was 3.30% for the first quarter of 2021, consistent with the fourth quarter of 2020. Adjusted net interest margin (FTE) excluded a 14 basis point impact related to purchase accounting accretion and amortization related to the TCF/Chemical merger and a three basis point impact related to PPP loans. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables for reconciliations of our noted non-GAAP measures. The decrease in net interest margin from the fourth quarter of 2020 was primarily driven by lower purchase accounting accretion and new loan and lease originations at lower yields than loan and lease runoff, partially offset by lower cost of funds. Deposit costs continued to reprice lower as they declined from 0.22% in the fourth quarter of 2020 to 0.14% in the first quarter of 2021.

Noninterest Income
Noninterest income was $132.1 million for the first quarter of 2021, an increase of $4.8 million, or 3.8%, from the fourth quarter of 2020. Noninterest income for the first quarter of 2021 included a notable item of a $7.6 million loan servicing rights recovery of impairment, included in mortgage banking income. Noninterest income for the fourth quarter of 2020 included a notable item of a $357 thousand loan servicing rights impairment, included in mortgage banking income. Adjusted noninterest income, a non-GAAP financial measure that excludes the identified notable items, for the first quarter of 2021 was $124.4 million, compared to $127.6 million in the fourth quarter of 2020. Noninterest income in the first quarter of 2021, compared to the fourth quarter of 2020, also included an increase of $5.7 million in net gains on sales of loans and leases, a decrease of $3.9 million in fees and service charges on deposit accounts and a decrease of $3.6 million in leasing revenue. Net gains on sales of loans and leases for the first quarter of 2021 included the sale of $17.8 million of consumer nonaccrual loans. The first quarter of 2021 also included a $1.9 million favorable interest rate swap mark-to-market adjustment resulting from changes in the interest rate environment, included in other noninterest income, compared to a favorable interest rate swap mark-to-market adjustment of $2.4 million in the fourth quarter of 2020. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables for reconciliations of our noted non-GAAP measures.

Noninterest Expense
Noninterest expense was $348.7 million for the first quarter of 2021, a decrease of $30.4 million, or 8.0%, from the fourth quarter of 2020. The first quarter of 2021 included $16.2 million of merger-related expenses and $543 thousand of historic tax credit amortization recorded in other noninterest expense. The decrease in the first quarter of 2021 primarily reflected decreases of $17.5 million in compensation and benefits expense and $15.3 million in merger-related expenses, partially offset by increases of $2.1 million in occupancy and equipment expense and $1.8 million in lease financing equipment depreciation. The decrease in compensation and benefits expense was primarily due to executive severance expense recognized in the fourth quarter of 2020 and a decrease in commissions and incentives expense, partially offset by an increase in payroll taxes due to the beginning of a new tax year.
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Income Tax Expense
Income tax expense for the first quarter of 2021 was $19.5 million, an effective tax rate of 13.5%, compared to income tax expense of $25.0 million, an effective tax rate of 21.3%, for the fourth quarter of 2020. Income tax expense for the first quarter of 2021 included an additional $11.0 million benefit attributable to tax net operating loss carryback benefits associated with the CARES Act. Excluding the benefit provided by the CARES Act, our effective income tax rate was 21.1% for the first quarter of 2021.

Credit Quality
Provision for credit losses Provision for credit losses was $20.6 million for the first quarter of 2021, an increase of $8.7 million, from the fourth quarter of 2020. The provision for credit losses in the first quarter of 2021 primarily reflects loan and lease growth and the impact of higher net charge-offs. First quarter 2021 net charge-offs were $43.3 million, compared to $11.6 million in the fourth quarter of 2020.

Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases were 0.49% for the first quarter of 2021, compared to 0.24% for the average of the trailing four quarters. The increase in the first quarter of 2021 was primarily due to charge-offs taken on nonaccrual loans and leases within the commercial and industrial portfolio, as well as the commercial real estate portfolio primarily in the hotel sector.

Allowance for Credit Losses The ACL includes both the allowance for loan and lease losses, which is presented separately on the Consolidated Statements of Financial Condition, and the reserve for unfunded lending commitments, which is included in other liabilities on the Consolidated Statements of Financial Condition. The ACL was $526.6 million, or 1.45% of total loans and leases, at March 31, 2021, compared to $549.2 million, or 1.59%, at December 31, 2020. The ACL as a percentage of total loans and leases, excluding PPP loans, a non-GAAP financial measure, was 1.53% at March 31, 2021, compared to 1.67% at December 31, 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The PPP loans are individually guaranteed by the Small Business Administration and therefore the accounting under CECL does not require reserves to be recorded on such loans. The decrease in the ACL as a percentage of total loans and leases from December 31, 2020 was primarily due to continued improvement in both current and forecasted macro-economic conditions and benefit from nonaccrual loan sale recoveries.

Nonaccrual loans and leases Nonaccrual loans and leases were $677.9 million at March 31, 2021 and represented 1.87% of total loans and leases, compared to $677.3 million, or 1.97% of total loans and leases, at December 31, 2020.

Nonaccrual loans and leases in the hotel sector were $110.6 million, an increase of $32.0 million from December 31, 2020, while nonaccrual loans in the motor coach sector were $100.2 million, a decrease of $3.9 million from December 31, 2020, and nonaccrual loans and leases in the shuttle bus sector were $37.0 million, an increase of $569 thousand from December 31, 2020. Due to the prolonged recovery of revenues for borrowers in these sectors given the dependency on travel and related activity levels, we have taken a proactive approach by working with
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borrowers to extend deferrals continuing into 2021 where necessary, many of which have been moved to nonaccrual status.

Loan and Lease Deferrals Loans and leases on deferral status were $231.0 million at March 31, 2021, a decrease of $98.9 million, or 30.0%, from December 31, 2020. Loans and leases on deferral status included $148.8 million of balances that are included in nonaccrual balances at March 31, 2021, the majority of which have been on deferral for over 180 days.

Balance Sheet
Loans and leases
March 31,December 31,Change
(Dollars in thousands)
20212020$%
Total loans and leases
$36,221,019$34,466,408$1,754,611 5.1%
PPP loans1,865,3191,553,908$311,411 20.0
Adjusted total loans and leases, excluding PPP(1)
$34,355,700$32,912,500$1,443,200 4.4%
(1)Denotes a non-GAAP financial measure.

Loans and leases were $36.2 billion at March 31, 2021, an increase of $1.8 billion, or 5.1%, compared to $34.5 billion at December 31, 2020. At March 31, 2021 we had $1.9 billion of PPP loans outstanding, compared to $1.6 billion at December 31, 2020, all included in our commercial and industrial loan portfolio. Loans and leases excluding PPP loans, a non-GAAP financial measure, increased $1.4 billion, or 4.4%, from December 31, 2020, primarily due to the CEC portfolio purchase and additional increases in the commercial loan and lease portfolio and residential mortgage loans.

Investment securities The investment securities portfolio was $8.6 billion at March 31, 2021, an increase of $144.5 million, or 1.7%, compared to $8.5 billion at December 31, 2020.

Deposits Deposits were $39.8 billion at March 31, 2021, an increase of $930.5 million, or 2.4%, compared to $38.9 billion at December 31, 2020. Increases in noninterest-bearing deposits of $1.4 billion, savings account balances of $478.5 million and checking deposit account balances of $3.3 million, were partially offset by decreases in certificates of deposits of $859.2 million and money market accounts of $50.8 million as of March 31, 2021 compared to December 31, 2020. On a year-over-year basis, noninterest-bearing deposits increased $4.2 billion, or 50.5%.

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Capital The common equity Tier 1 capital ratio was 11.06% at March 31, 2021, compared to 11.45% at December 31, 2020. Our capital ratios reflect our election of the five-year CECL transition for regulatory capital purposes.

TCF's board of directors declared a quarterly cash dividend of $0.35625 per depositary share payable on June 1, 2021 to shareholders of record of the depositary shares, representing a 1/1,000th interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock, at the close of business on May 14, 2021.

TCF's board of directors has not declared a regular quarterly cash dividend on TCF's common shares given the expected closing date of the merger with Huntington in the second quarter of 2021. If necessary to give effect to the intent of the Agreement and Plan of Merger to provide that TCF shareholders will receive either a common dividend from TCF or a common dividend from Huntington, but not both for the quarter, TCF's board of directors will revisit the dividend topic.

TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $49 billion in total assets at March 31, 2021 and a top 10 deposit market share in the Midwest. TCF’s primary banking subsidiary, TCF National Bank, is a premier Midwest bank offering consumer and commercial banking, trust and wealth management, and specialty leasing and lending products and services to consumers, small businesses and commercial clients. TCF has approximately 475 banking centers primarily located in Michigan, Illinois and Minnesota with additional locations in Colorado, Ohio, South Dakota and Wisconsin. TCF also conducts business across all 50 states and Canada through its specialty lending and leasing businesses. To learn more about TCF, visit 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 Corporation's businesses and their respective markets, such as statements regarding projections of future performance, targets, guidance, statements of the Corporation's plans and objectives, forecasts of market trends and other matters are forward-looking statements based on the Corporation'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.

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This release also contains forward-looking statements regarding TCF's outlook or expectations with respect to the planned merger with Huntington. Examples of forward-looking statements include, but are not limited to, statements regarding the outlook and expectations of TCF and Huntington with respect to the planned merger, the strategic benefits and financial benefits of the merger, including the expected impact of the merger on the combined corporation's future financial performance (including anticipated accretion to earnings per share, the tangible book value earn-back period and other operating and return metrics), and the timing of the closing of the merger. Such risks, uncertainties and assumptions, include, among others:
the failure to obtain necessary regulatory approvals when expected or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect TCF or Huntington or the expected benefits of the merger);
the failure of either TCF or Huntington to satisfy any of the other closing conditions to the merger on a timely basis or at all;
the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement;
the possibility that the anticipated benefits of the merger, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of the impact of, or problems arising from, economic weakness, competitive factors in the areas where TCF and Huntington do business, or as a result of other unexpected factors or events;
the impact of purchase accounting with respect to the merger, or any change in the assumptions used regarding the assets purchased and liabilities assumed to determine their fair value;
diversion of management's attention from ongoing business operations and opportunities;
potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the merger;
the ability of either TCF or Huntington to repurchase their stock and the prices at which such repurchases may be made;
the outcome of any legal proceedings that may be instituted against TCF or Huntington;
the integration of the businesses and operations of TCF and Huntington, which may take longer than anticipated or be more costly than anticipated or have unanticipated adverse results relating to our businesses;
business disruptions following the merger; and
other factors that may affect future results of TCF and Huntington including changes in asset quality and credit risk; the inability to grow revenue and earnings; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms.

8


Additional factors that could cause results to differ materially from those described above can be found in the risk factors described in Part I, Item 1A of TCF’s Annual Report on Form 10-K under the heading "Risk Factors" and Huntington’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2020 or otherwise disclosed in documents filed or furnished by us with or to the SEC after the filing of the Annual Report on Form 10-K. TCF disclaims any obligation to update or revise any forward-looking statements contained in this communication, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

Use of Non-GAAP Financial Measures
Management uses the adjusted net income, adjusted diluted earnings per common share, adjusted ROAA, adjusted ROACE, ROATCE, adjusted ROATCE, adjusted efficiency ratio, adjusted net interest income, net interest margin (FTE), adjusted net interest margin (FTE), adjusted noninterest income, adjusted noninterest expense, tangible book value per common share, tangible common equity to tangible assets and the allowance for credit losses as percentage of total loans and leases, excluding PPP loans, internally to measure performance and believes that these financial measures not recognized under generally accepted accounting principles in the United States ("GAAP") (i.e. non-GAAP) provide meaningful information to investors that will permit them to assess the Corporation's capital and ability to withstand unexpected market or economic conditions and to assess the performance of the Corporation in relation to other banking institutions on the same basis as that applied by management, analysts and banking regulators. TCF adjusts certain results to exclude merger-related expenses and notable items, including the related tax impact, in addition to presenting net interest income and net interest margin (FTE) excluding purchase accounting accretion and amortization and the impact of PPP loans. Management believes these measures are useful to investors in understanding TCF's business and operating results.
These non-GAAP financial measures are not defined by GAAP and other entities may calculate them differently than TCF does. Non-GAAP financial measures have inherent limitations and are not required to be uniformly applied. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a corporation, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes selected items does not represent the amount that effectively accrues directly to shareholders. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measure may be found in the reconciliation tables included in this press release.
9


TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition (Unaudited)
Change From
(Dollars in thousands)
Mar. 31,Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31, 2020Mar. 31, 2020
20212020202020202020$%$%
ASSETS:
Cash and cash equivalents:
Cash and due from banks
$585,663$531,918$538,481$535,507$713,413$53,745 10.1%$(127,750)(17.9)%
Interest-bearing deposits with other banks
463,641 728,677 1,232,773 2,545,170 565,458 (265,036)(36.4)(101,817)(18.0)
Total cash and cash equivalents
1,049,304 1,260,595 1,771,254 3,080,677 1,278,871 (211,291)(16.8)(229,567)(18.0)
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost
358,414 320,436 300,444 386,483 484,461 37,978 11.9(126,047)(26.0)
Investment securities:




Available-for-sale, at fair value
8,403,788 8,284,723 7,446,163 7,219,373 7,025,224 119,065 1.41,378,564 19.6
Held-to-maturity, at amortized cost
209,778 184,359 170,309 130,101 135,619 25,419 13.874,159 54.7
Total investment securities
8,613,566 8,469,082 7,616,472 7,349,474 7,160,843 144,484 1.71,452,723 20.3
Loans and leases held-for-sale
107,649 222,028 460,427 532,799 287,177 (114,379)(51.5)(179,528)(62.5)
Loans and leases
36,221,019 34,466,408 34,343,691 35,535,824 35,921,614 1,754,611 5.1299,405 0.8
Allowance for loan and lease losses
(504,645)(525,868)(515,229)(461,114)(406,383)21,223 4.0(98,262)(24.2)
Loans and leases, net
35,716,374 33,940,540 33,828,462 35,074,710 35,515,231 1,775,834 5.2201,143 0.6
Premises and equipment, net
455,032 470,131 469,699 472,240 516,454 (15,099)(3.2)(61,422)(11.9)
Goodwill
1,379,890 1,313,046 1,313,046 1,313,046 1,313,046 66,844 5.166,844 5.1
Other intangible assets, net
149,438 146,377 151,875 157,373 162,887 3,061 2.1(13,449)(8.3)
Loan servicing rights
44,151 38,303 38,253 38,816 47,283 5,848 15.3(3,132)(6.6)
Other assets
1,585,733 1,621,949 1,615,857 1,656,842 1,828,130 (36,216)(2.2)(242,397)(13.3)
Total assets
$49,459,551 $47,802,487 $47,565,789 $50,062,460 $48,594,383 $1,657,064 3.5%$865,168 1.8%
LIABILITIES AND EQUITY:




Deposits:




Noninterest-bearing
$12,394,753$11,036,086$10,691,041$10,480,245$8,237,916$1,358,667 12.3%$4,156,837 50.5%
Interest-bearing
27,392,061 27,820,233 28,481,056 28,730,627 27,561,387 (428,172)(1.5)(169,326)(0.6)
Total deposits
39,786,814 38,856,319 39,172,097 39,210,872 35,799,303 930,495 2.43,987,511 11.1
Short-term borrowings
1,426,083 617,363 655,461 2,772,998 3,482,535 808,720 131.0(2,056,452)(59.1)
Long-term borrowings
1,518,816 1,374,732 871,845 936,908 2,600,594 144,084 10.5(1,081,778)(41.6)
Other liabilities
1,136,067 1,264,776 1,207,966 1,483,127 1,056,118 (128,709)(10.2)79,949 7.6
Total liabilities
43,867,780 42,113,190 41,907,369 44,403,905 42,938,550 1,754,590 4.2929,230 2.2
Equity:




Preferred stock
169,302 169,302 169,302 169,302 169,302 — — 
Common stock
152,696 152,566 152,380 152,233 152,186 130 0.1510 0.3
Additional paid-in capital
3,466,655 3,457,802 3,450,669 3,441,925 3,433,234 8,853 0.333,421 1.0
Retained earnings
1,802,340 1,735,201 1,700,044 1,700,480 1,732,932 67,139 3.969,408 4.0
Accumulated other comprehensive income
2,654 182,673 191,771 198,408 166,170 (180,019)(98.5)(163,516)(98.4)
Other
(29,813)(26,731)(27,122)(27,093)(28,140)(3,082)(11.5)(1,673)(5.9)
Total TCF Financial Corporation shareholders' equity
5,563,834 5,670,813 5,637,044 5,635,255 5,625,684 (106,979)(1.9)(61,850)(1.1)
Non-controlling interest
27,937 18,484 21,376 23,300 30,149 9,453 51.1(2,212)(7.3)
Total equity
5,591,771 5,689,297 5,658,420 5,658,555 5,655,833 (97,526)(1.7)(64,062)(1.1)
Total liabilities and equity
$49,459,551 $47,802,487 $47,565,789 $50,062,460 $48,594,383 $1,657,064 3.5%$865,168 1.8%
N.M. Not Meaningful
10


TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Quarter EndedChange From
(Dollars in thousands)
Mar. 31,Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31, 2020Mar. 31, 2020
20212020202020202020$
%
$
%
Interest income:
Interest and fees on loans and leases
$360,584 $366,152 $373,112 $392,826 $443,096 $(5,568)(1.5)%$(82,512)(18.6)%
Interest on investment securities:

Taxable
38,716 35,389 35,648 32,505 40,920 3,327 9.4(2,204)(5.4)
Tax-exempt
3,700 3,772 3,892 4,155 4,349 (72)(1.9)(649)(14.9)
Interest on loans held-for-sale
975 2,682 3,829 3,322 1,561 (1,707)(63.6)(586)(37.5)
Interest on other earning assets
1,657 3,457 3,967 5,562 5,466 (1,800)(52.1)(3,809)(69.7)
Total interest income
405,632 411,452 420,448 438,370 495,392 (5,820)(1.4)(89,760)(18.1)
Interest expense:




Interest on deposits
13,786 20,930 31,852 46,785 67,419 (7,144)(34.1)(53,633)(79.6)
Interest on borrowings
10,019 9,128 11,429 13,226 26,492 891 9.8(16,473)(62.2)
Total interest expense
23,805 30,058 43,281 60,011 93,911 (6,253)(20.8)(70,106)(74.7)
Net interest income
381,827 381,394 377,167 378,359 401,481 433 0.1(19,654)(4.9)
Provision for credit losses
20,556 11,818 69,664 78,726 96,943 8,738 73.9(76,387)(78.8)
Net interest income after provision for credit losses
361,271 369,576 307,503 299,633 304,538 (8,305)(2.2)56,733 18.6
Noninterest income:




Leasing revenue
36,453 40,081 31,905 37,172 33,565 (3,628)(9.1)2,888 8.6
Fees and service charges on deposit accounts
25,895 29,782 25,470 22,832 34,597 (3,887)(13.1)(8,702)(25.2)
Card and ATM revenue
24,661 22,995 23,383 20,636 21,685 1,666 7.22,976 13.7
Mortgage banking income(1)
20,986 11,647 19,880 16,300 5,665 9,339 80.215,321 N.M.
Wealth management revenue
6,944 6,838 6,506 6,206 6,151 106 1.6793 12.9
Net gains on sales of loans and leases(2)
6,058 330 1,760 4,717 7,573 5,728 N.M.(1,515)(20.0)
Net gains on investment securities
2,324 — 33.3N.M.
Other
11,055 15,557 7,582 25,183 27,727 (4,502)(28.9)(16,672)(60.1)
Total noninterest income
132,060 127,236 118,810 133,054 136,963 4,824 3.8(4,903)(3.6)
Noninterest expense:




Compensation and employee benefits
173,602 191,052 168,323 171,799 171,528 (17,450)(9.1)2,074 1.2
Occupancy and equipment
52,166 50,062 48,233 54,107 57,288 2,104 4.2(5,122)(8.9)
Lease financing equipment depreciation
20,426 18,610 17,932 18,212 18,450 1,816 9.81,976 10.7
Net foreclosed real estate and repossessed assets
1,029 761 1,518 998 1,859 268 35.2(830)(44.6)
Merger-related expenses
16,216 31,530 54,011 81,619 36,728 (15,314)(48.6)(20,512)(55.8)
Other
85,243 87,076 83,423 73,506 88,746 (1,833)(2.1)(3,503)(3.9)
Total noninterest expense
348,682 379,091 373,440 400,241 374,599 (30,409)(8.0)(25,917)(6.9)
Income before income tax expense (benefit)
144,649 117,721 52,873 32,446 66,902 26,928 22.977,747 116.2
Income tax expense (benefit)
19,540 25,031 (4,429)6,213 13,086 (5,491)(21.9)6,454 49.3
Income after income tax expense (benefit)
125,109 92,690 57,302 26,233 53,816 32,419 35.071,293 132.5
Income attributable to non-controlling interest
1,773 1,332 1,564 2,469 1,917 441 33.1(144)(7.5)
Net income attributable to TCF Financial Corporation
123,336 91,358 55,738 23,764 51,899 31,978 35.071,437 137.6
Preferred stock dividends
2,493 2,494 2,494 2,494 2,493 (1)— 
Net income available to common shareholders
$120,843 $88,864 $53,244 $21,270 $49,406 $31,979 36.0%$71,437 144.6%
(1)    Mortgage banking income includes revenues from originating, selling and servicing residential mortgage loans, changes in fair value of mortgage loans held-for-sale and the related derivative instruments, amortization and changes in impairment of mortgage loan servicing rights, and other miscellaneous loan fees.
(2)     Net gains on sales of loans and leases includes net gains on sales of loans and leases originated as held-for-investment.
11


TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields and Rates (Unaudited)
Quarter Ended
Mar. 31, 2021Dec. 31, 2020Mar. 31, 2020
Average
Yields &
Average
Yields &
Average
Yields &
(Dollars in thousands)
Balance
Interest(1)
Rates(1)(2)
Balance
Interest(1)
Rates(1)(2)
Balance
Interest(1)
Rates(1)(2)
ASSETS:
Federal Home Loan Bank and Federal Reserve Bank stocks
$354,019$9991.14%$301,460$2,8553.77%$454,675$3,1522.79%
Investment securities held-to-maturity
188,824 1,0852.30162,590 6381.57136,277 5601.64
Investment securities available-for-sale:
Taxable
7,203,647 37,6312.096,553,126 34,7512.125,892,006 40,3602.74
Tax-exempt(3)
646,001 4,6842.90652,743 4,7742.93773,468 5,5032.85
Loans and leases held-for-sale
160,716 9752.43419,704 2,6822.56138,058 1,5614.53
Loans and leases(3)(4)
Commercial and industrial
12,265,082 133,5104.3711,425,226 130,6544.5111,827,315 160,8025.42
Commercial real estate
9,818,737 88,3773.609,623,256 96,2783.919,291,540 117,7435.01
Lease financing
2,849,741 34,1894.802,700,298 32,6174.832,682,323 34,1565.09
Residential mortgage
6,219,844 53,7353.465,788,514 52,7113.646,113,279 61,3794.02
Home equity
2,988,761 37,7815.133,202,321 39,7224.933,514,278 51,1035.85
Consumer installment
1,191,606 14,8185.041,288,382 16,3965.061,517,412 19,7425.23
Total loans and leases(3)(4)
35,333,771 362,4104.1234,027,997 368,3784.2834,946,147 444,9255.08
Interest-bearing deposits with banks and other
515,163 6580.52706,114 6020.34538,971 2,3141.72
Total interest-earning assets
44,402,141 408,4423.6942,823,734 414,6803.8342,879,602 498,3754.64
Other assets
4,348,617 4,537,786 4,105,824 
Total assets
$48,750,758 $47,361,520 $46,985,426 
LIABILITIES AND EQUITY:
Noninterest-bearing deposits
$11,322,059$10,942,071$7,929,933
Interest-bearing deposits:
Savings
9,697,206 883 0.049,395,608 1,759 0.078,589,815 13,669 0.64
Checking
7,259,029 1,442 0.087,029,938 1,763 0.105,990,309 5,830 0.39
Money market
5,577,424 4,704 0.345,478,528 5,828 0.424,792,248 14,855 1.25
Certificates of deposit
5,094,423 6,757 0.545,784,759 11,580 0.807,329,632 33,065 1.81
Total interest-bearing deposits
27,628,082 13,786 0.2027,688,833 20,930 0.3026,702,004 67,419 1.02
Total deposits
38,950,141 13,786 0.1438,630,904 20,930 0.2234,631,937 67,419 0.78
Borrowings:
Short-term borrowings
1,228,501 833 0.27252,749 101 0.162,689,262 10,582 1.56
Long-term borrowings
1,587,028 9,186 2.321,253,556 9,027 2.872,608,204 15,910 2.42
Total borrowings
2,815,529 10,019 1.421,506,305 9,128 2.415,297,466 26,492 1.98
Total interest-bearing liabilities
30,443,611 23,805 0.3229,195,138 30,058 0.4131,999,470 93,911 1.18
Total deposits and borrowings
41,765,670 23,805 0.2340,137,209 30,058 0.3039,929,403 93,911 0.94
Accrued expenses and other liabilities
1,288,804 1,517,120 1,425,536 
Total liabilities
43,054,474 41,654,329 41,354,939 
Total TCF Financial Corporation shareholders' equity
5,673,654 5,687,196 5,605,159 
Non-controlling interest in subsidiaries
22,630 19,995 25,328 
Total equity
5,696,284 5,707,191 5,630,487 
Total liabilities and equity
$48,750,758 $47,361,520 $46,985,426 
Net interest spread (FTE)
3.46%3.53%3.70%
Net interest income (FTE) and net interest margin (FTE)
$384,6373.47%$384,6223.55%$404,4643.76%
Reconciliation to Reported Net Interest Income
Net interest income and net interest margin (GAAP)
$381,8273.45%$381,3943.53%$401,4813.73%
Adjustments for taxable equivalent
interest(1)(3)
Loans and leases
1,826 2,226 1,829 
Tax-exempt investment securities
984 1,002 1,154 
Total FTE adjustments
2,810 3,228 2,983 
Net interest income and net interest margin (FTE)
$384,6373.47%$384,6223.55%$404,4643.76%
(1)Interest and yields are presented on a fully tax-equivalent basis.
(2)Annualized.
(3)The yield on tax-exempt loans and investment securities available-for-sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.
(4)Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income.
12


TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Quarterly Average Balance Sheets (Unaudited)
Quarter EndedChange From
Mar. 31,Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31, 2020Mar. 31, 2020
(Dollars in thousands)
20212020202020202020$
%
$%
ASSETS:
Federal Home Loan Bank and Federal Reserve Bank stocks
$354,019$301,460$361,320$401,532$454,675$52,559 17.4%$(100,656)(22.1)%
Investment securities held-to-maturity
188,824 162,590 135,332 132,054 136,277 26,234 16.1 52,547 38.6 
Investment securities available-for-sale:



Taxable
7,203,647 6,553,126 6,021,643 5,730,762 5,892,006 650,521 9.9 1,311,641 22.3 
Tax-exempt
646,001 652,743 685,652 743,744 773,468 (6,742)(1.0)(127,467)(16.5)
Loans and leases held-for-sale
160,716 419,704 490,886 356,671 138,058 (258,988)(61.7)22,658 16.4
Loans and leases(1) :




Commercial and industrial
12,265,082 11,425,226 11,740,727 12,713,714 11,827,315 839,856 7.4 437,767 3.7 
Commercial real estate
9,818,737 9,623,256 9,616,301 9,658,124 9,291,540 195,481 2.0 527,197 5.7 
Lease financing
2,849,741 2,700,298 2,679,142 2,712,291 2,682,323 149,443 5.5 167,418 6.2 
Residential mortgage
6,219,844 5,788,514 5,987,754 6,326,227 6,113,279 431,330 7.5 106,565 1.7 
Home equity
2,988,761 3,202,321 3,399,468 3,509,107 3,514,278 (213,560)(6.7)(525,517)(15.0)
Consumer installment
1,191,606 1,288,382 1,386,448 1,459,446 1,517,412 (96,776)(7.5)(325,806)(21.5)
Total loans and
leases(1)
35,333,771 34,027,997 34,809,840 36,378,909 34,946,147 1,305,774 3.8 387,624 1.1 
Interest-bearing deposits with banks and other
515,163 706,114 2,572,254 1,587,665 538,971 (190,951)(27.0)(23,808)(4.4)
Total interest-earning assets
44,402,141 42,823,734 45,076,927 45,331,337 42,879,602 1,578,407 3.7 1,522,539 3.6 
Other assets
4,348,617 4,537,786 4,462,673 4,384,779 4,105,824 (189,169)(4.2)242,793 5.9 
Total assets
$48,750,758$47,361,520$49,539,600$49,716,116$46,985,426$1,389,238 2.9%$1,765,332 3.8%
LIABILITIES AND EQUITY:




Noninterest-bearing deposits
$11,322,059$10,942,071$10,654,288$9,830,687$7,929,933$379,988 3.5%$3,392,126 42.8%
Interest-bearing deposits:




Savings
9,697,206 9,395,608 9,301,198 9,082,184 8,589,815 301,598 3.2 1,107,391 12.9 
Checking
7,259,029 7,029,938 7,029,914 6,649,288 5,990,309 229,091 3.31,268,720 21.2 
Money market
5,577,424 5,478,528 5,501,747 5,380,547 4,792,248 98,896 1.8785,176 16.4 
Certificates of deposit
5,094,423 5,784,759 6,657,697 7,491,502 7,329,632 (690,336)(11.9)(2,235,209)(30.5)
Total interest-bearing deposits
27,628,082 27,688,833 28,490,556 28,603,521 26,702,004 (60,751)(0.2)926,078 3.5 
Total deposits
38,950,141 38,630,904 39,144,844 38,434,208 34,631,937 319,237 0.84,318,204 12.5 
Borrowings:




Short-term borrowings
1,228,501 252,749 2,153,030 3,016,490 2,689,262 975,752 N.M.(1,460,761)(54.3)
Long-term borrowings
1,587,028 1,253,556 910,149 1,072,394 2,608,204 333,472 26.6 (1,021,176)(39.2)
Total borrowings
2,815,529 1,506,305 3,063,179 4,088,884 5,297,466 1,309,224 86.9 (2,481,937)(46.9)
Total interest-bearing liabilities
30,443,611 29,195,138 31,553,735 32,692,405 31,999,470 1,248,473 4.3 (1,555,859)(4.9)
Total deposits and borrowings
41,765,670 40,137,209 42,208,023 42,523,092 39,929,403 1,628,461 4.1 1,836,267 4.6
Accrued expenses and other liabilities
1,288,804 1,517,120 1,633,850 1,534,769 1,425,536 (228,316)(15.0)(136,732)(9.6)
Total liabilities
43,054,474 41,654,329 43,841,873 44,057,861 41,354,939 1,400,145 3.4 1,699,535 4.1
Total TCF Financial Corporation shareholders' equity
5,673,654 5,687,196 5,675,089 5,630,133 5,605,159 (13,542)(0.2)68,495 1.2
Non-controlling interest in subsidiaries
22,630 19,995 22,638 28,122 25,328 2,635 13.2 (2,698)(10.7)
Total equity
5,696,284 5,707,191 5,697,727 5,658,255 5,630,487 (10,907)(0.2)65,7971.2
Total liabilities and equity
$48,750,758$47,361,520$49,539,600$49,716,116$46,985,426$1,389,238 2.9%$1,765,332 3.8%
N.M. Not Meaningful
(1)Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income.

13


TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Quarterly Yields and Rates(1)(2) (Unaudited)
Quarter Ended
Change From
Mar. 31,Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,Mar. 31,
2021202020202020202020202020
ASSETS:
Federal Home Loan Bank and Federal Reserve Bank stocks
1.14 %3.77 %3.27 %4.38 %2.79 %(263)
bps
(165)
bps
Investment securities held-to-maturity
2.30 1.57 1.69 0.21 1.64 7366
Investment securities available-for-sale:


Taxable
2.09 2.12 2.33 2.26 2.74 (3)(65)
Tax-exempt(3)
2.90 2.93 2.90 2.81 2.85 (3)5
Loans and leases held-for-sale
2.43 2.56 3.13 3.73 4.53 (13)(210)
Loans and leases(3)


Commercial and industrial
4.37 4.51 4.30 4.41 5.42 (14)(105)
Commercial real estate
3.60 3.91 3.90 3.91 5.01 (31)(141)
Lease financing
4.80 4.83 4.88 4.99 5.09 (3)(29)
Residential mortgage
3.46 3.64 3.86 3.93 4.02 (18)(56)
Home equity
5.13 4.93 5.09 5.19 5.85 20(72)
Consumer installment
5.04 5.06 5.04 4.88 5.23 (2)(19)
Total loans and leases(3)
4.12 4.28 4.26 4.33 5.08 (16)(96)
Interest-bearing deposits with banks and other
0.52 0.34 0.16 0.30 1.72 18(120)


Total interest-earning assets
3.69 3.83 3.72 3.88 4.64 (14)(95)


LIABILITIES:


Interest-bearing deposits:


Savings
0.04 0.07 0.17 0.40 0.64 (3)(60)
Checking
0.08 0.10 0.11 0.14 0.39 (2)(31)
Money market
0.34 0.42 0.53 0.66 1.25 (8)(91)
Certificates of deposit
0.54 0.80 1.10 1.44 1.81 (26)(127)
Total interest-bearing deposits
0.20 0.30 0.44 0.66 1.02 (10)(82)
Total deposits
0.14 0.22 0.32 0.49 0.78 (8)(64)
Borrowings:


Short-term borrowings
0.27 0.16 0.46 0.54 1.56 11(129)
Long-term borrowings
2.32 2.87 3.91 3.40 2.42 (55)(10)
Total borrowings
1.42 2.41 1.48 1.29 1.98 (99)(56)


Total interest-bearing liabilities
0.32 0.41 0.55 0.74 1.18 (9)(86)
Total deposits and borrowings
0.23 0.30 0.41 0.57 0.94 (7)(71)


Net interest margin (GAAP)
3.45 3.53 3.31 3.33 3.73 (8)(28)
Net interest margin (FTE)
3.47 3.55 3.34 3.35 3.76 (8)(29)
(1)Annualized.
(2)Yields are presented on a fully tax-equivalent basis.
(3)The yield on tax-exempt loans and investment securities available-for-sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.



14


TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Composition of Loans (Unaudited)
Quarter EndedChange From
Mar. 31,Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31, 2020Mar. 31, 2020
(Dollars in thousands)
20212020202020202020$%$%
Commercial and industrial
$12,856,701$11,422,383$11,557,237$12,200,721$12,326,943$1,434,318 12.6%$529,758 4.3%
Commercial real estate
9,881,341 9,702,587 9,627,330 9,628,344 9,486,904 178,754 1.8394,437 4.2
Lease financing
2,956,626 2,817,231 2,724,686 2,707,402 2,708,998 139,395 4.9247,628 9.1
Total commercial loan and lease portfolio
25,694,668 23,942,201 23,909,253 24,536,467 24,522,845 1,752,467 7.31,171,823 4.8
Residential mortgage
6,510,981 6,182,045 5,790,251 6,123,118 6,435,314 328,936 5.375,667 1.2
Home equity
2,864,142 3,108,736 3,302,983 3,445,584 3,453,502 (244,594)(7.9)(589,360)(17.1)
Consumer installment
1,151,228 1,233,426 1,341,204 1,430,655 1,509,953 (82,198)(6.7)(358,725)(23.8)
Total consumer loan portfolio
10,526,351 10,524,207 10,434,438 10,999,357 11,398,769 2,144 0.0(872,418)(7.7)
Total
$36,221,019$34,466,408$34,343,691$35,535,824$35,921,614$1,754,611 5.1%$299,405 0.8%
Composition of Deposits (Unaudited)
Quarter EndedChange From
Mar. 31,Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31, 2020Mar. 31, 2020
(Dollars in thousands)
20212020202020202020$%$%
Noninterest-bearing deposits
$12,394,753$11,036,086$10,691,041$10,480,245$8,237,916$1,358,667 12.3%$4,156,837 50.5 %
Interest-bearing deposits:
Savings
9,988,434 9,509,963 9,295,467 9,310,362 8,703,864 478,471 5.01,284,570 14.8 
Checking
7,225,588 7,222,275 7,453,504 6,693,092 6,289,046 3,313 936,542 14.9 
Money market
5,512,828 5,563,614 5,397,325 5,584,177 5,105,285 (50,786)(0.9)407,543 8.0 
Certificates of deposit
4,665,211 5,524,381 6,334,760 7,142,996 7,463,192 (859,170)(15.6)(2,797,981)(37.5)
Total interest-bearing deposits
27,392,061 27,820,233 28,481,056 28,730,627 27,561,387 (428,172)(1.5)(169,326)(0.6)
Total deposits
$39,786,814$38,856,319$39,172,097$39,210,872$35,799,303$930,495 2.4%$3,987,511 11.1 %


15


TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Summary of Credit Quality Data
Allowance for Credit Losses (Unaudited)
Mar. 31,Dec. 31,Sep. 30,Jun. 30,Mar. 31,
20212020202020202020
(Dollars in thousands)
Balance
Reserve Rate
Balance
Reserve Rate
Balance
Reserve Rate
Balance
Reserve Rate
Balance
Reserve Rate
Allowance for loan and lease losses
Commercial and industrial
$148,0561.15%$155,6651.36%$145,814