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TCF EARNS $19 MILLION FOR 1991; FOURTH QUARTER EARNINGS UP 21 PERCENT

 TCF EARNS $19 MILLION FOR 1991;
 FOURTH QUARTER EARNINGS UP 21 PERCENT
 MINNEAPOLIS, Jan. 16 /PRNewswire/ -- TCF Financial Corporation (TCF) (NYSE: TCB), parent company of TCF Bank Savings fsb (TCF Bank), today reported net income of $19 million or $2.47 per share for the year ended Dec. 31, 1991, compared with a net loss of $20.7 million or $2.86 per share for 1990. The 1990 net loss resulted from a balance sheet restructuring that included increased provisions for loan and real estate losses, the closing of TCF's Texas thrift subsidiary and write- off of goodwill, and certain asset sales.
 For the fourth quarter of 1991, TCF earned $5.3 million or 66 cents per share, a 21 percent increase over 1990 fourth quarter earnings of $4.3 million or 60 cents per share. The 1991 fourth quarter results represent TCF's sixth consecutive profitable quarter.
 On Jan. 10, 1992, TCF completed the sales of 1.6 million shares of common stock and $34.5 million of ten-year 10 percent subordinated capital notes through a public offering. TCF received proceeds from the sales, net of underwriting discounts and estimated expenses, of $61 million. An over-allotment option for up to 240,000 shares of common stock has not yet been exercised by the underwriters. If exercised, TCF would receive up to an additional $4.2 million in net proceeds. The effect of the sales is not included in TCF's balance sheet at Dec. 31, 1991. TCF Bank's proforma regulatory capital ratios at Dec. 31, 1991, which reflect the sales of common stock and subordinated capital notes and the Jan. 1, 1992, scheduled phase-out of a portion of qualifying supervisory goodwill from core and risk-based capital, were core capital of 5.06 percent of adjusted assets, tangible capital of 4.02 percent and risk-based capital of 10.29 percent.
 "The successful completion of our offering is a significant event in our primary goal of building a well-capitalized, consistently profitable community bank," said TCF Chairman and Chief Executive Officer William A. Cooper. "The proforma capital ratios exceed all current and proposed minimum regulatory requirements and provide the framework for future growth."
 Cooper also noted that TCF continued to strengthen its business fundamentals in 1991. "Our net interest income and net interest margin for the year reached record levels, interest rate risk was reduced, fee income continued to grow at a faster rate than operating expenses, and our capital ratios improved," said Cooper.
 Net interest income for 1991 was a record $117.2 million, an 18 percent increase over $99.4 million for 1990. For the 1991 fourth quarter, net interest income was $29.8 million, compared with $25.7 million for the 1990 fourth quarter. TCF's net interest margin was a record 3.18 percent for 1991 and a record 3.29 percent for the 1991 fourth quarter, compared with 2.50 percent for 1990 and 2.70 percent for the 1990 fourth quarter. The increases were primarily due to a lower cost of funds, less reliance on higher-rate short-term borrowings, a changing asset mix, lower levels of non-earning assets, and wider spreads between the prime rate and short-term interest rates.
 Nonperforming assets (principally real estate acquired through foreclosure and non-accrual loans) were $70.9 million at year-end 1991, down 19 percent from $87.3 million at Sept. 30, 1991, and down
12 percent from $80.4 million at the end of 1990. "While we've made progress in reducing our nonperforming assets, the prevailing weakness in the commercial real estate markets is a source of concern, and we continue to closely monitor our commercial loans and properties," said Cooper.
 TCF provided $35.2 million for loan and real estate losses in 1991, compared with $41 million in 1990. In the 1991 fourth quarter, provisions for loan and real estate losses totaled $7.4 million, compared with $10 million in the 1990 fourth quarter. Net loan and real estate charge-offs were $43.2 million in 1991 and $7.9 million in the 1991 fourth quarter, compared with $29.7 million in 1990 and $10.8 million in the 1990 fourth quarter. At year-end 1991, TCF's allowances for loan and real estate losses totaled $26.3 million, compared with $34.3 million at year-end 1990.
 TCF realized net gains of $5.7 million on asset sales in 1991, none of which occurred during the fourth quarter. That compares with 1990 net gains of $7 million, including $6.1 million in the fourth quarter. Non-interest income (excluding gain or loss on asset sales) totaled $79.5 million for 1991, up 12 percent from $71.1 million for 1990. For the 1991 fourth quarter, non-interest income (excluding gain or loss on asset sales) totaled $21 million, up 10 percent from $19 million for the 1990 fourth quarter. The improvements were largely due to increased volumes of deposit, mortgage banking, student lending and insurance activities.
 Non-interest expense (excluding the provisions for real estate losses and 1990 write-off of goodwill) totaled $145.8 million for 1991, up 2 percent from 143.1 million for 1990. For the 1991 fourth quarter, non-interest expense (excluding the provisions for real estate losses) totaled $37.8 million, up 5 percent from $36.1 million for the 1990 fourth quarter.
 Income tax expense of $9.8 million in 1991 and $1.9 million in the 1991 fourth quarter is up from $900,000 and $300,000, respectively, for the same periods in 1990. The increase in income tax expense primarily resulted from $21.4 million of pretax earnings for 1991, compared to a pretax operating loss for 1990 when only state income taxes and federal and state alternative minimum taxes were provided. A significant portion of the 1991 tax provision was offset by the utilization of net operating loss carryovers.
 TCF recognized an extraordinary credit of $7.4 million in 1991, including $1.5 million in the fourth quarter, from the utilization of net operating loss carryovers. No tax benefits were recognized during the comparable 1990 periods due to the operating loss experienced during 1990.
 Total net loans, including loans held for sale, were $3.4 billion at Dec. 31, 1991, down $153.6 million from year-end 1990. Mortgage-backed securities declined $136.8 million, primarily due to principal repayments. Consumer loans outstanding declined $72.6 million, with a $120.9 million reduction in indirect auto loans partially offset by a $68.7 million increase in home equity loans.
 Mortgage originations at TCF Mortgage Corporation (TCFMC) totaled a record $1 billion in 1991 and $331.8 million in the 1991 fourth quarter, compared with $681 million in 1990 and $154.7 million in the 1990 fourth quarter.
 Deposits totaled $3.2 billion at Dec. 31, 1991, down $84.8 million from year-end 1990. Lower interest-cost checking and savings accounts were $1 billion or 32 percent of total deposits, up from $959.6 million or 29 percent at year-end 1990. The weighted-average rate on deposits at Dec. 31, 1991, was 5.30 percent, compared with 6.60 percent at year- end 1990.
 TCF Bank opened a branch in the Apple Valley, Minn., Cub Foods store on Oct. 30, 1991. TCF Bank now has 20 in-store branches in Minnesota and Illinois providing banking services seven days a week.
 At year-end 1991, TCF had total assets of $4 billion, down from $4.2 billion at the end of 1990. Stockholders' equity was $172.9 million or 4.3 percent of assets. Book value per share was $22.51 and tangible book value per share was $14.59, based on 7,682,525 shares outstanding.
 TCF is the holding company for TCF Bank, which has 58 Minnesota and 20 northern Illinois branches. Deposits at TCF Bank are insured to $100,000 by the Federal Deposit Insurance Corporation. TCF Bank also owns and operates a mortgage company, an insurance agency, and a title insurance agency.
 TCF FINANCIAL CORPORATION
 OPERATING HIGHLIGHTS
 (Dollars in thousands, except per-share data)
 Three Months Ended Year Ended
 12/31/91 12/31/90 12/31/91 12/31/90
 Selected operations data:
 Total revenues $104,585 $120,868 $437,411 $476,599
 Total interest income $83,601 $95,731 $352,254 $398,551
 Total interest expense 53,781 70,080 235,010 299,185
 Net interest income 29,820 25,651 117,244 99,366
 Provision for loan losses 3,150 7,950 14,342 22,460
 Net interest income
 after provision for
 loan losses 26,670 17,701 102,902 76,906
 Non-interest income:
 Gain (loss) on sale of
 loans and investments, net -- 116 966 (3,616)
 Gain on sale of loan
 servicing -- -- 4,732 4,625
 Gain from pension
 settlement -- 5,978 -- 5,978
 Other non-interest
 income 20,984 19,043 79,459 71,061
 Total non-interest
 income 20,984 25,137 85,157 78,048
 Non-interest expense:
 Provision for real estate
 losses 4,283 2,082 20,825 18,584
 Write-off of goodwill -- -- -- 13,072
 Other non-interest expense 37,771 36,111 145,799 143,102
 Total non-interest expense 42,054 38,193 166,624 174,758
 Income (loss) before income
 tax expense and
 extraordinary item 5,600 4,645 21,435 (19,804)
 Income tax expense 1,857 300 9,773 900
 Income (loss) before
 extraordinary item 3,743 4,345 11,662 (20,704)
 Extraordinary item (1) 1,515 -- 7,372 --
 Net income (loss) $5,258 $4,345 $19,034 $(20,704)
 Earnings per share:
 Income (loss) before
 extraordinary item $.47 $.60 $1.51 $(2.86)
 Extraordinary item (1) .19 -- .96 --
 Net income (loss) $.66 $.60 $2.47 $(2.86)
 (1) Represents tax benefit resulting from the utilization of net operating loss carryovers.
 Financial ratios (annualized):
 Return on average assets
 (percent) .53 .42 .47 (.47)
 Return on average equity 12.36 11.45 11.72 (12.69)
 Net interest margin 3.29 2.70 3.18 2.50
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (Dollars in thousands, except per-share data)
 ASSETS 12/31/91 12/31/90
 Cash and due from banks $100,175 $102,506
 Interest-bearing deposits with banks 10,698 42,382
 Federal funds sold 100,000 60,000
 U.S. government and other marketable
 securities (market value of $168,241 and
 $106,302) 168,187 109,271
 Federal home loan bank stock, at cost 27,364 28,844
 Loans held for sale 200,281 115,199
 Loans:
 Mortgage-backed securities, net (market
 value of $1,209,743 and $1,275,024) 1,162,521 1,299,278
 Loans receivable:
 Residential real estate 413,169 425,758
 Commercial real estate 729,141 776,480
 Commercial business 87,388 98,317
 Consumer 821,486 880,851
 Unearned discounts and deferred fees (24,570) (47,470)
 Total loans receivable 2,026,614 2,133,936
 Total loans 3,189,135 3,433,214
 Allowance for loan losses (18,679) (24,051)
 Net loans 3,170,456 3,409,163
 Premises and equipment, net 47,215 48,577
 Real estate:
 In judgment and acquired through foreclosure 57,425 57,951
 Held for development 18,104 34,516
 Total real estate 75,529 92,467
 Allowance for real estate losses (7,603) (10,234)
 Net real estate 67,926 82,233
 Accrued interest receivable 28,201 36,435
 Goodwill 60,848 68,048
 Due from brokers on sales of loans and
 investments -- 27,338
 Other assets 55,406 56,007
 Total assets 4,036,757 4,186,003
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Deposits:
 Checking $493,210 $461,980
 Passbook and statement 538,570 497,621
 Money market 356,877 312,336
 Certificates 1,843,131 2,044,652
 Total deposits 3,231,788 3,316,589
 Securities sold under repurchase agreements 100,000 156,759
 Federal home loan bank advances 455,166 490,000
 Subordinated capital notes 28,750 28,750
 Total borrowings 583,916 675,509
 Accrued interest payable 11,485 14,103
 Accrued expenses and other liabilities 36,650 26,315
 Total liabilities 3,863,839 4,032,516
 Stockholders' equity:
 Common stock, par value $.01 per share,
 70,000,000 shares authorized; 7,682,525 and
 7,292,504 shares issued and outstanding 77 73
 Additional paid-in capital 84,434 79,688
 Unamortized deferred compensation (1,917) (258)
 Retained earnings, subject to certain
 restrictions 91,538 75,520
 Loan to executive deferred compensation plan (1,214) (1,536)
 Total stockholders' equity 172,918 153,487
 Total liabilities 4,036,757 4,186,003
 BALANCE SHEET HIGHLIGHTS
 (Dollars in thousands, except per-share data)
 12/31/91 12/31/90
 Other Financial Condition Data:
 Tangible net worth $112,070 $85,439
 Book value per share 22.51 21.05
 Tangible book value per share 14.59 11.72
 Stockholders' equity to total assets (pct.) 4.28 3.67
 Non-performing assets 70,887 80,438
 One-year interest-rate gap 109,423 (550,135)
 One-year interest-rate gap to
 total assets (pct.) 3 (13)
 TCF Bank Savings fsb regulatory capital ratios:
 Actual:
 Tangible capital (pct.) 2.67 1.96
 Core capital (pct.) 4.21 3.52
 Risk-based capital (pct.) 8.74 7.55
 Proforma (1):
 Tangible capital (pct.) 4.02 N/A
 Core capital (pct.) 5.06 N/A
 Risk-based capital (pct.) 10.29 N/A
 (1) Reflects TCF's capital contribution in January 1992 to TCF Bank of all but approximately $5 million of the net proceeds from the Jan. 10, 1992, sales of 1.6 million shares of common stock and $34.5 million of subordinated capital notes. Also reflects the Jan. 1, 1992, scheduled phase-out of a portion of the qualifying supervisory goodwill includable in core and risk-based capital.
 -0- 1/16/92
 /CONTACT: Cynthia A. Wind of TCF Financial, 612-370-7390/
 (TCB) CO: TCF Financial Corporation ST: Minnesota IN: FIN SU: ERN


AL -- MN003 -- 0350 01/16/92 09:04 EST
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