As the rules of the program changed since ourparticipation began on November 14 2008 it quickly became

As the rules of the program changed since ourparticipation began on November 14, 2008, it quickly became apparent thatcontinued participation was creating a competitive disadvantage for TCF. TCF isstill solidly capitalized and remains a safe and sound franchise. TCF willcontinue to expand lending and other key areas of our businesses withoutgovernment assistance. The decrease innet interest margin from the fourth quarter of 2008 was primarily due to recordgrowth in average deposits of $1 billion, exceeding growth in average loans andleases of $353.1 million, resulting in excess liquidity being placed in low ratedeposits with the Federal Reserve. At March 31, 2009, TCF had $742.9 million ondeposit with the Federal Reserve which is included in cash and due from banks.

* TCF purchased $600.1 million of short-term government sponsored enterprisedebentures in late March and April of 2009 to minimize the negative effects ofexcess liquidity and improve net interest margin. * Reductions in excess liquidity being placed on deposit with the FederalReserve as a result of investments in short-term government sponsored enterprisedebentures and the repayment of the Capital Purchase Program funds is expectedto improve net interest margin and earnings per share going forward.Non-interest Income* Banking fees and service charges were $57.1 million, down $6.5 million, or10.2 percent, from the first quarter of 2008 and down $10.4 million, or 15.4percent, from the fourth quarter of 2008 primarily due to lower transactionactivity in deposit accounts. * Card revenues totaled $25 million for the first quarter of 2009, essentiallyflat with the first quarter and fourth quarter of 2008. The flattening of growthin card revenue was primarily due to lower debit card spending, which isreflective of the current economic conditions. * ATM revenue was $7.6 million, down $372 thousand, or 4.7 percent, from thefirst quarter of 2008 and flat with the fourth quarter of 2008 primarily due tofewer fee generating transactions on non-TCF ATM machines by TCF customers.

* Leasing and equipment finance revenues were $12.7 million for the firstquarter of 2009, up $517 thousand, or 4.3 percent, from the first quarter of2008 and down $3.6 million, or 22.4 percent, from the fourth quarter of 2008.The decline in leasing revenue from the fourth quarter of 2008 is primarily dueto lower sales-type lease revenue which varies from period to period based oncustomer-driven events. * Other non-interest income was $458 thousand, down $3.8 million from the firstquarter of 2008. = Not meaningful * Residential real estate loans, totaling $428.9 million at March 31, 2009,previously disclosed separately, are now included with the first lien consumerreal estate loans due to the relatively small remaining balance and the run-offnature of the residential real estate portfolio. * Average consumer real estate loan balances increased $191.5 million, or 2.7percent, from the first quarter of 2008 and were relatively flat from the fourthquarter of 2008. The flat growth rate from the fourth quarter of 2008 was due inpart to declines in Michigan and the run-off of the residential real estate loanportfolio. * At March 31, 2009, 67.5 percent of the consumer real estate loan portfolio wassecured by first liens. * Average commercial loan balances increased $388.2 million, or 12.5 percent,from the first quarter of 2008 and $79.7 million, or 2.3 percent, from thefourth quarter of 2008 as a result of increased opportunities in themarketplace.