Financial Review TCFFinancial Corporation and Subsidiaries _ 2002 Annual Report This financial review presents management’s discussion and analysis of the consolidated financial condition and results of operations of TCF Financial Corporation (“TCF” or the “Company”) and should be read in conjunction with the consolidated financial statements and other financial data beginning on page 46. TCF is a national financial holding company. Its principal sub- sidiary,TCF National Bank, is headquartered in Minnesota and had 395 banking offices in Minnesota, Illinois, Michigan, Wisconsin, Colorado and Indiana at December 31, 2002. Other affiliates pro- vide leasing and equipment finance, mortgage banking, brokerage and investment and insurance sales. TCF provides convenient financial services through multiple channels to customers located primarily in the Midwest. TCF has developed products and services designed to meet the needs of all consumers. The Company focuses on attracting and retaining cus- tomers through service and convenience, including branches that are open seven days a week and on most holidays, extensive full-service supermarket branch and automated teller machine (“ATM”) net- works, and telephone and Internet banking. TCF’s philosophy is to generate top-line revenue growth (net interest income and fees and other revenue) through business lines that emphasize higher yield- ing assets and lower or no interest-cost deposits. The Company’s growth strategies include new branch expansion and the development of new products and services designed to build on its core businesses and expand into complementary products and services through emerging businesses and strategic initiatives. TCF’s core businesses are comprised of mature traditional bank branches, EXPRESS TELLER ® ATMs, and commercial, consumer and mortgage lending. TCF emphasizes the “Totally Free” checking account as its anchor account, which provides opportunities to cross sell other convenience products and services and generate additional fee income. TCF’s strategy is to originate high credit quality, pri- marily secured loans and earn profits through lower or no interest- cost deposits. Commercial loans are generally made on local properties or to local customers, and are virtually all secured. TCF’s largest core lending business is its consumer home equity loan operation, which offers fixed- and variable-rate closed-end loans and lines of credit secured by residential real estate properties. TCF’s emerging businesses and products are comprised of super- market bank branches, including supermarket consumer lending, leasing and equipment finance, VISA ® debit cards, and Internet and college campus banking. TCF’s most significant de novo strategy has been its supermarket branch expansion. The Company opened its TCF does not utilize unconsolidated subsidiaries or special pur- pose entities to provide off-balance-sheet borrowings. The Company does not use derivatives to manage its interest rate risk position. TCF has not issued trust preferred or other quasi-equity instru- ments. The Company does not report “pro forma earnings.” TCF does not have foreign loans and has not purchased any bank owned life insurance (BOLI). The Company adopted the fair value method of accounting for stock compensation pursuant to Statement of Financial Accounting Standards (“SFAS”) No. 123 “Accounting for Stock-Based Compensation” in 2000. TCF has used stock options as a form of employee compensation only to a limited extent, and the number of stock options outstanding as a percentage of total shares outstanding is less than one-half of 1%. TCF’s strategic initiatives complement the Company’s core and emerging businesses. TCF’s new products have been significant contributors to the growth in fees and other revenues generated by checking accounts and loan products. Currently, TCF’s strategic ini- tiatives include continued investment in new branch expansion and new loan and deposit products, including card products designed to provide additional convenience to deposit and loan customers. The Company operates a securities brokerage operation, TCF Express Trade, and plans to continue to provide new insurance and invest- ment products during the upcoming year.  first supermarket branch in 1988, and now has 244 supermarket branches, with $1.5 billion in deposits. TCF has the nation’s 4th largest supermarket banking branch system. The success of TCF’s branch expansion is dependent on the continued long-term success of branch banking as well as the continued success and viability of TCF’s supermarket partners and TCF’s ability to maintain leases or license agreements for its supermarket branch locations. TCF is sub- ject to the risk, among others, that its license for a location or loca- tions will terminate upon the sale or closure of that location or locations by its supermarket partner. TCF entered the leasing busi- ness through its 1997 acquisition of Winthrop Resources Corporation (“Winthrop”), a leasing company that leases computers and other equipment or software to companies nationwide. The Company expanded its leasing operations in September 1999 through TCF Leasing, Inc. (“TCF Leasing”), a de novo general leasing and equip- ment finance leasing business. TCF’s leasing and equipment finance businesses finance equipment in all 50 states. The Company’s VISA ® debit card program has also grown significantly since its inception in 1996. According to a September 30, 2002 statistical report issued by VISA$^{®}$, TCF, with approximately 1.4 million cards outstanding, was the 11th largest VISA ® debit card issuer in the United States, based on the number of cards outstanding, and the 11th largest based on sales volume of $732.1 million for the 2002 third quarter. page 20 Corporate Profile