Profile: TCF Financial Corporation (TCB)

TCF Financial Corporation (TCF) is a financial holding company. The Company’s businesses include retail and small business banking, commercial banking, consumer lending, leasing and equipment finance, and inventory finance. The retail banking business includes traditional and supermarket branches, campus banking, EXPRESS TELLER ATMs and Visa cards. The subsidiaries of the Company are TCF National Bank and TCF National Bank Arizona (TCF Bank). TCF Bank operates bank branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana and Arizona. The segments of the Company are banking, and leasing and equipment finance. Banking provides financial services, which include deposits and investments products, commercial banking, consumer lending and treasury services. Leasing and equipment finance provides a range of leasing and equipment finance products addressing the financing needs of businesses. In August 2008, the Company announced the creation of a new subsidiary, TCF Inventory Finance, Inc. (TCF Inventory Finance). In September 2009, Fidelity National Financial, Inc. announced the sale of Fidelity National Capital, Inc. (FN Capital) to Winthrop Resources Corporation (WRC), a subsidiary of the Company.

Retail Banking

As of December 31, 2008, TCF had 448 retail banking branches, consisting of 197 traditional branches, 236 supermarket branches and 15 campus branches. TCF operated 206 branches in Illinois, 111 in Minnesota, 56 in Michigan, 36 in Colorado, 27 in Wisconsin, seven in Arizona and five in Indiana. During 2008, TCF opened 11 branches, consisting of five traditional branches and six supermarket branches. Campus banking represents a part of TCF’s retail banking business. TCF has alliances with the University of Minnesota, the University of Michigan, the University of Illinois plus seven other colleges. TCF provides multi-purpose campus cards for many of these colleges. These cards serve as a school identification card, automated teller machine (ATM) card, library card, security card, health care card, phone card and stored value card for vending machines or similar uses.

Lending Activities

TCF’s lending activities includes providing secured loans to individuals and businesses in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana and Arizona. It is also engaged in leasing and equipment finance, and inventory finance activities throughout the United States and Canada. TCF makes consumer loans for personal, family or household purposes, such as home purchases, debt consolidation, financing of home improvements, automobiles, vacations and education. The consumer lending origination activities consist of home equity real estate secured lending. It also includes loans secured by personal property and to a limited extent, unsecured personal loans. Consumer loans may be made on a revolving line of credit or fixed-term basis.

Commercial real estate loans are loans originated by TCF that are secured by commercial real estate which includes, to a lesser extent, commercial real estate construction loans, mainly to borrowers based in its primary markets. Commercial business loans are loans originated by TCF that are secured by various types of business assets, including inventory, receivables, equipment, financial instruments and commercial real estate. TCF provides a range of lease and equipment finance products addressing the financing needs of diverse types of small to large companies.

TCF’s leasing and equipment finance businesses, TCF Equipment Finance, Inc. (TCF Equipment Finance) and Winthrop Resources Corporation (Winthrop Resources), finance equipment in all 50 states. TCF Equipment Finance delivers equipment finance solutions to small and mid-size companies in various industries. Winthrop Resources focuses on providing high technology lease financing to meet the special needs of mid-size and large companies and health care facilities that procure computers, servers, telecommunication and other technology equipment.

TCF Inventory Finance, Inc. (TCF Inventory Finance) provides commercial inventory financing to retail businesses in the United States and Canada, focusing on the electronics and appliance markets. TCF’s Inventory Finance business originates commercial variable rate loans, which are secured by the underlying floorplanned equipment and supported by repurchase agreements from original equipment manufacturers.

Investment Activities

TCF Bank invest in various types of liquid assets, including United States Treasury obligations and securities of various federal agencies and United States Government sponsored enterprises, deposits of insured banks, bankers’ acceptances and federal funds. TCF Bank’s investments does not include commercial paper, asset-backed commercial paper and asset-backed securities secured by credit cards or car loans. TCF Bank does not participate in structured investment vehicles and does not have any bank-owned life insurance.

Source of Funds

Deposits are the source of TCF’s funds for use in lending and for other general business purposes. Consumer, small business and commercial deposits are attracted from within TCF’s market areas through the offering of a selection of deposit instruments, including consumer, small business and commercial demand deposit accounts, interest-bearing checking accounts, money market accounts, regular savings accounts, certificates of deposit and retirement savings plans. As of December 31, 2008, interest-bearing deposits comprised 78% of total deposits.

Activities of Subsidiaries of TCF Financial Corporation

TCF’s business operations include those conducted by direct and indirect subsidiaries. TCF’s direct subsidiaries are TCF National Bank and TCF National Bank Arizona (collectively, TCF Bank). Subsidiaries of TCF Bank are engaged in leasing and equipment finance, insurance and investment services, and inventory finance.