page 44 TCF provided $4.1 million for credit losses in the fourth quar- ter of 2002, compared with $7 million in the fourth quarter of 2001. Net loan and lease charge-offs were $3.2 million, or .16% of aver- age loans and leases outstanding, compared with $5.6 million, or .27% of average loans and leases outstanding during the same 2001 period. The decrease in the provision and net loan and lease charge- offs from 2001 reflects the impact of decreased charge-offs in the leasing and equipment finance portfolio. Non-interest income, excluding gains on sales of securities avail- able for sale, increased $10.4 million, or 10.9%, during the fourth quarter of 2002 to $106.1 million. The increase was primarily due to increased fees and service charges, investments and insurance commissions and debit card and ATM revenue, reflecting TCF’s expanding retail banking and customer base. Non-interest expense increased $9.5 million, or 7.3%, in the fourth quarter of 2001 to $141 million. The increases were primar- ily due to costs associated with expanded retail banking and mortgage banking activities. In the fourth quarter of 2002, the effective income tax rate was reduced to 33.93% of income before tax expense for the quarter due to the favorable resolution of uncertainties during tax examinations. Earnings Teleconference and Website Information TCF hosts quarterly conference calls to discuss its financial results. Additional information regarding TCF’s conference calls can be obtained from the investor relations section within TCF’s web site at www.tcfexpress.com or by contacting TCF’s Corporate Communica- tions Department at (952) 745-2760. The website also includes free access to company news releases, TCF’s annual report, quarterly reports, investor presentations and SEC filings. Federal and state legislation imposes numerous legal and regulatory requirements on financial institutions. Future legislative or regula- tory change, or changes in enforcement practices or court rulings, may have a dramatic and potentially adverse impact on TCF and its bank and other subsidiaries. The Federal Deposit Insurance Corporation (“FDIC”) and members of the United States Congress have recently proposed new legislation that would reform the bank deposit insurance system. This reform could merge BIF and SAIF insurance funds, increase the Legislative, Legal and Regulatory Developments In September 2002, the Securities and Exchange Commission (“SEC”) issued its final ruling covering the acceleration of periodic report filing dates. The rule applies to all companies, including TCF, that have a public float of at least $75 million that have been subject to the SEC’s reporting requirements for at least 12 calendar months and that have previously filed at least one annual report. For com- panies meeting the definition of accelerated filer as of the end of their first fiscal year ending on or after December 15, 2002, the annual report deadline will remain 90 days for year one and will then be reduced 15 days per year over two years to 60 days. The quarterly report on Form 10-Q will remain due 45 days after quarter end for year one and will then be reduced five days per year over two years to 35 days. On July 30, 2002, the Sarbanes-Oxley Act of 2002 (“the Act”) was signed into law by the President of the United States. The Act provides for sweeping changes dealing with corporate governance, accounting practices and disclosure requirements for public compa- nies, and also for their directors and officers. Section 302 of the Act, entitled “Corporate Responsibility for Financial Reports,” required the SEC to adopt rules to implement certain requirements noted in the Act and it did so effective August 29, 2002. The new rules require a company’s chief executive and chief financial officers to certify the financial and other information included in the company’s quar- terly and annual reports. The rules also require these officers to certify that they are responsible for establishing, maintaining and regularly evaluating the effectiveness of the company’s disclosure con- trols and procedures; that they have made certain disclosures to the auditors and to the audit committee of the board of directors about the company’s controls and procedures; and that they have included information in their quarterly and annual filings about their evalu- ation and whether there have been significant changes to the controls and procedures or other factors which would significantly impact these controls subsequent to their evaluation. deposit insurance coverage limits and index future coverage limita- tions, among other changes. Most significantly, reform proposals could allow the FDIC to raise or lower (within certain limits) the currently mandated designated reserve ratio requiring the FDIC to maintain a 1.25% reserve ratio ($1.25 against $100 of insured deposits), and require certain changes in the calculation methodol- ogy. Although it is too early to predict the ultimate impact of such proposals, they could, if adopted, result in the imposition of addi- tional deposit insurance premium costs on TCF. 