In its news release on Q1/13 earnings, TCF Financial noted that leasing and equipment finance revenue was $16.5 million during Q1/13, down $6.4 million, or 28%, from Q1/12 and down $9.7 million, or 37.1%, from Q4/12. The bank said the decreases were primarily due to lower operating lease and sales-type lease revenue growth in the leasing and equipment finance portfolio as a result of “customer driven events.”

TCF Financial reported net income for the first quarter of 2013 of $25.5 million, compared with a net loss of $282.9 million for the first quarter of 2012 (inclusive of a net after-tax charge of $295.8 million related to a balance sheet repositioning involving certain investments and borrowings in that period).

“TCF’s first quarter results were highlighted by strong credit quality improvements as well as additional core revenue generation,” said William A. Cooper, chairman and chief executive officer. “Our encouraging credit
trends, which began in late 2012 and have continued into 2013, include decreases in non-accrual loans and leases, other real estate owned and net charge-offs. Revenue increased during the quarter due to the impact of continued core auto loan sales and expanded core consumer real estate loan sales.”

TCF said its Q1/13 period-end leasing and equipment finance portfolio was $3.19 billion, down slightly from $3.20 billion at the end of Q4/12.

The bank said the provision for loan losses was $38.4 million in the quarter, a decrease of $10.2 million from the first quarter of 2012. The decrease was primarily due to a reduction in the reserve rate for the commercial, leasing and equipment finance and inventory finance portfolios resulting from improved credit quality.

TCF said 60-day or over delinquency in its leasing and equipment finance portfolio was $2.1 million, down from $4.9 million in the same quarter in 2012. As a percentage of portfolio, TCF said Q1/13 delinquency was .07% compared to .17% in Q1/12. Lease and equipment finance non-accruals dropped from $20.0 million in Q1/12 to $11.7 million in Q1/13. Net charge-offs, however, were $1.2 million, up from $151K a year earlier.

To read the TCF Financial news release click here.