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Dear Stockholders:

2007 Highlights:

• TCF earned a record $266.8 million in 2007, up $21.9 million, or 8.9 percent, from the previous year. Earnings per share was a record $2.12, up $.22, or 11.6 percent, from the previous year.

• TCF's return on average assets was 1.76 percent and return on average equity was 25.82 percent. TCF remains a "well-capitalized" financial institution and continues to be ranked among the highest performing banks in the country, topping U.S. Banker's 'Best of the Best: Banking's Top 100' list in 2007.

• TCF's stock price closed at $17.93 on December 31, 2007, down 34.6 percent from $27.42 per share on December 31, 2006. Stock prices for all financial institutions, including TCF, have been badly battered since October 2007 as a result of the billion-dollar losses and write-downs which continue to be announced by the Big Banks and brokerage companies. As a result of the depreciated home values and a widening credit crunch, the market also now fears an economic slowdown.

• TCF recently increased its dividend to $1.00 per share in 2008, a 3.1 percent increase. This is the 17th consecutive year we have increased the dividend.

The major factors affecting our performance in 2007 were as follows:

1. Things TCF Does Not Do

   As stockholders, you should be aware of the risky activities in which TCF has not participated. These activities have caused the depressed housing market and related credit crunch.

   TCF does not have:

   • Subprime lending programs
   • Teaser rate adjustable-rate mortgages (ARMs)
   • Option ARMs
   • Collateralized Debt Obligations
   • Asset-backed commercial paper
   • Structured investment vehicles.

   Indeed, over 99 percent of TCF's securities available for sale portfolio consists of plain vanilla mortgage-backed securities guaranteed by FANNIE MAE® or Freddie Mac®, both of which are AAA rated government sponsored enterprises.

2. Interest Rate Environment

   TCF's net interest income grew to $550.2 million in 2007. This is an increase of $12.6 million, or 2.4 percent, in a very difficult operating environment as the yield curve remained flat or inverted for the entire year.

   The increase in net interest income was attributable to a $1 billion increase, or 9.4 percent, in average Power Assets®, partially offset by a 22 basis point decrease, or 5.3 percent, in the net interest margin rate. The net interest margin rate in 2007 was 3.94 percent.

   As a result of the interest rate environment, TCF's growth primarily occurred in lower yield fixed-rate assets and higher cost deposits. This compressed the net interest margin.

3. Credit Quality

   TCF's credit quality has not been immune from the depressed housing markets and weakening economy, especially in Michigan. TCF's charge-offs in 2007 were $34.6 million, or .30 percent, as compared to 2006 charge-offs of $18 million, or .17 percent. Most of the increase resulted from higher home equity loan charge-offs, primarily in Minnesota and Michigan. The industry subprime lending crisis led to record foreclosures and an oversupply of homes held for sale. This, in turn, led to lower home values and increased credit losses for TCF. Our commercial loan and leasing credit quality remains very good with the exception of the Michigan market.

   Although higher than historical levels, TCF's over 30-day delinquencies remained well controlled at .67 percent. Non-performing assets at year end totaled $105.6 million, a $40 million increase from December 31, 2006. The rise in non-performing assets resulted from increased non-accruals and real estate-owned in both home equity and commercial real estate.

   The provision for losses in 2007 was $57 million compared to $20.7 million last year. At December 31, 2007, TCF's allowance for loan and lease losses totaled $80.9 million, or .66 percent of loans and leases, an increase of $22.4 million from $58.5 million at December 31, 2006. The wisdom of TCF's secured lending philosophy has helped to weather the recent credit storms.

4. Fee Income

   Fees and service charges increased 2.9 percent in 2007. A concentrated effort was made to manage this area well in 2007. Checking account customers continued to change their banking behavior; they are writing fewer checks, using their debit card more frequently to replace check and cash transactions, and initiating more ACH transactions.

   Card revenues continued their growth momentum and increased 7.4 percent to $98.9 million in 2007. TCF is the 12th largest Visa® debit card issuer in the United States. Debit card revenue growth is slowing somewhat as this business is maturing and our net checking account growth has also slowed over the past few years.

   Another strong fee category was leasing and equipment finance revenues, which totaled $59.2 million, up 11.6 percent, from the prior year.

5. Power Assets® and Power Liabilities®

   TCF's Power Asset lending operations continued to generate strong growth. Power Assets totaled $11.8 billion at the end of 2007 and average Power Assets increased 9.4 percent over the prior year.

   Consumer home equity loans grew 10.9 percent and totaled $6.5 billion. During 2007, we tightened underwriting standards further to require higher borrower credit scores and lower loan-to-value ratios.

   Commercial loans increased 5.9 percent in 2007 and totaled $3.1 billion. We have maintained our credit underwriting discipline in growing this portfolio. This portfolio is generally secured by real estate and other assets, and 93 percent of the portfolio is located in TCF's banking markets. We continue to expand our commercial banking operations and capabilities within our banking markets.

   TCF's leasing and equipment finance portfolio grew 14.6 percent, which includes operating leases. This $2.2 billion portfolio is well diversified by equipment type and geography, and grew nicely in all active segments. Our leasing and equipment finance operation is the 37th largest in the United States, and is the 18th largest bank-owned equipment finance company in the United States. Winthrop Resources Corporation grew its portfolio $22.7 million, or nine percent, in 2007 - a positive trend which will favorably impact future periods. TCF's leasing and equipment finance business is now one of the largest profit centers at TCF.

   Power Liabilities totaled $9.58 billion as of December 31, 2007, a decline of $192.7 million. In the first quarter of 2007, TCF sold $241 million of out-state Michigan deposits. During the second half of 2007, deposit competition intensified. Large banks with credit and subprime issues raised their retail deposit rates in order to replace other higher cost wholesale funding sources. TCF chose not to match these higher rates, particularly in certificates of deposit. This resulted in a decline in balances in this category. While savings balances increased in 2007 because of generally higher interest rates, non-interest bearing checking balances declined.

6. Branches

   In 2007, TCF sold its remaining out-state Michigan branches and $241 million in deposits for an 11.5 percent premium plus a related gain on the sale of branch real estate. The total gain was $31.2 million. The sale recognized that TCF's convenience banking strategy works better in densely populated urban areas, and that we have other more attractive growth opportunities. Our timing was excellent on the sale transaction and we received a very attractive premium.

   TCF opened 20 branches in 2007 (10 traditional, seven supermarket and three campus). We also relocated six branches and remodeled 15 branches. TCF closed 10 branches in addition to the Michigan branches we sold.

7. Campus Banking

   In 2007, TCF entered into a new exclusive campus banking relationship with the University of Illinois. The relationship will provide college students with internet banking, bill payment capabilities and checking account access through their i-cards™. The University of Illinois has an annual enrollment of approximately 70,000 students.

   Collectively, TCF's campus banking network includes over 123,000 accounts from students, faculty and staff. With our recent school additions, prospect list and pipeline of new students, we have a great opportunity for new business in our campus banking division.

8. Other Asset Sale Gains

   In addition to the branch sale noted above, TCF recognized $20 million in asset sale gains in 2007 compared to $5.8 million in 2006. The 2007 gains included $13.3 million from the gains on sales of securities and $6.7 million from the sales of branch office real estate. The sales of branch office real estate generally resulted from relocating certain of our mature branches to improved facilities in order to enhance our growth prospects.

9. Expense Control Initiatives

   TCF completed numerous actions to limit operating costs in 2007. These actions included the closure and sale of branches as well as the reduction of consumer lenders to reflect the slower housing markets. We also consolidated our retail branch backroom functions and outsourced our investment and insurance backroom operations. TCF froze its pension plan in 2006 and in 2007 converted TCF's company-funded long-term disability benefit to an employee-funded plan. We also renegotiated major vendor contracts to reduce TCF's costs.

   These actions resulted in TCF's 2007 operating expenses (excluding operating lease depreciation and fourth quarter Visa charges) being almost flat with 2006. This was an excellent team performance.

10. VISA

    In the fourth quarter of 2007, Visa completed its corporate restructuring in preparation for an initial public offering in 2008. After the restructuring was completed, the SEC concluded that all member banks must record an expense for their contingent obligation to Visa for the litigation indemnification liability under Visa's bylaws.

    Accordingly, in the fourth quarter TCF recorded $7.7 million in pre-tax non-cash expense to reflect its estimated proportionate amount of Visa's liability. The estimated amount reflects the settlement of the AMERICAN EXPRESS® case, an estimated settlement of the DISCOVER® case and all other "covered" litigation. If the initial public offering is completed, Visa will deposit amounts into an escrow fund intended to satisfy these legal obligations, and TCF's recorded liability at that time may no longer be required.

11. Income Taxes

    Income taxes were lower than planned in 2007 due to favorable tax developments including the closing of certain previous years' tax returns, changes in state tax laws, and positive developments in income tax audits.

2008 Focus Areas and Concerns

1. The Yield Curve and Interest Rates

   The strong headwinds continue and make this area very challenging to manage. The current credit crunch and liquidity crisis has crept into deposit pricing and increased our deposit costs. Further Federal Reserve Board interest rate cuts may be difficult to offset through lower deposit rates.

2. Credit Quality

   Economic conditions are always a major risk for all banks, including TCF. A recession would adversely impact our results through increased loan and lease charge-offs and higher loss provisions. Further deterioration in home values is also a risk. We expect TCF's credit quality to deteriorate modestly in 2008 with somewhat higher charge-off levels. Our risk is elevated in this area due to the weak Michigan economy and depressed housing market.

3. Retail Banking

   In 2008, we are refocusing our retail banking efforts to improve the quality of our deposit accounts and grow deposit balances. Active checking account customers produce higher revenues and have lower attrition rates. We have enhanced our internal reporting and changed employee incentives to influence their behavior. Growing deposits in this economic climate is going to be very difficult.

   Retail banking is an important area for our company and one with significant future financial benefits. This is a high priority item for our entire management team in 2008.

4. Branches

   TCF frequently evaluates its branches for performance and growth opportunities in its markets. With the recent shift in focus from new branch expansion to improving the operating efficiencies of our existing branch network, in 2008 we intend to remodel 20 branches, relocate three branches, and close and consolidate three branches. These actions will improve the customer experience and boost TCF's capabilities to grow deposit accounts, deposit balances and consumer loans.

   TCF also plans to open 10 new branches in 2008, three of which are scheduled to open in our new separately chartered Arizona Bank. Arizona's prospects are strong and remain an excellent growth market for TCF.

   Our rapid expansion in Colorado over recent years has also slowed down by design. We currently have 46 branches in Colorado and plan to open two branches in 2008. Our focus in Colorado is shifting from expansion to profits. With our unique portfolio of all new branches located in premier sites, we are very well positioned for customer and profit growth in Colorado.

5. VISA

   The Visa payment system is still under legal siege by the merchants who seek to reduce or eliminate their card interchange expenses. At some point in time, this litigation may be settled and interchange rates could be reduced. Based on information received from Visa, completion of its initial public offering could result in a gain for TCF. The litigation reserve situation is also a risk. The debit card is an integral part of the checking account and TCF has over $100 million of revenues at stake.

6. Expense Control

   This remains a focus for 2008. We intend to continue our review efforts in this area and with strong teamwork and focus, necessary actions will be made to improve efficiency and allow investments to be made to enhance future growth.

7. Regulatory Burden

   The regulatory burden continues to increase at a crushing pace. These burdens increased in 2007 and will continue to grow in 2008. We must comply with all of these laws and regulations. The impact of all these laws and regulations is an increase in our costs and a growing amount of senior management time and attention that must be directed to monitor and comply with these requirements.

In Closing

A careful reading of this annual report will tell you almost everything about our company. We try to keep our financial reporting simple and our disclosures complete.

We continue to have a mutuality of interest with our stockholders and will always evaluate opportunities to deliver stockholder value. Our senior management and board of directors own over 10 million shares, or eight percent of TCF stock. Eighty-five percent of our match-eligible employees participate in TCF's Employees Stock Purchase Plan, which at year-end held over 7.2 million shares.

We are operating in one of the toughest banking environments I have seen and 2007 was a very difficult year. I would like to thank the board of directors for their continued dedication, wise counsel and support. It was very much appreciated in 2007. I would also like to thank our hard-working employees, who have put in extraordinary effort during the year. Their exceptional abilities, commitment and energy make everything happen. We are proud of the TCF Team and its accomplishments.

Thank you for your continued support and investment in TCF.

Lynn A. Nagorske
Chief Executive Officer