TCF Financial reported Q1/14 net income of $39.9 million compared with net income of $25.5 million for Q1/13.

William A. Cooper, chairman and chief executive officer said, “TCF’s first quarter results were positively impacted by the continuation of several key trends. Strong loan and lease originations and core deposit growth, decreased provision through continued credit quality improvement, and an industry-leading net interest margin more than offset the seasonal decline in banking fee revenue.”

TCF said the increase from the first quarter of 2013 was driven by higher average loan balances in the auto finance and inventory finance businesses as well as decreased rates on various deposit products. This increase was partially offset by downward pressure on yields across the lending businesses in this increasingly competitive low interest rate environment as well as lower average balances of consumer real estate and higher yielding commercial fixed-rate loans due to run-off exceeding originations.

TCF said leasing and equipment finance revenue was $22.3 million during the first quarter of 2014, up $5.8 million, or 35.4% from the first quarter of 2013 and down $1.3 million, or 5.7%, from fourth quarter 2013. The increase from the first quarter of 2013 and the decrease from the fourth quarter of 2013 were primarily due to customer-driven events impacting sales-type lease revenue.

Q1/14 period-end leasing and equipment finance assets were $3.46 billion, up 8.5% from $3.19 billion at Q1/13 period-end.

TCF also noted that provision for credit losses of $14.5 million was down 62.2% from the first quarter of 2013.

To view the full TCF Financial news release,
click here.