Auto lending

The Detroit company is capitalizing on other banks' retreat from the auto sector.

TCF executives were peppered with questions about the quality of $345 million in auto loans recategorized as held for investment in the second quarter, as a result of the company’s recent move away from loan sales and securitizations.

Double-digit growth in loan volume offset a decline in fee income at the Honolulu company.

Net interest income rose 7% and margins widened 17 basis points at the Wayzata, Minn., company.

Auto risks mounting. Mortgage market tightening. Are there any good risks these days in consumer lending? Regional bank executives insist partnerships with online lenders, unsecured personal loans and other niche efforts can work if done properly.

The McLean, Va., lender, which has substantial exposure to subprime consumer loans, also added to its provision for credit losses.

LendKey, whose software helps financial institutions make student, auto and home improvement loans, closed a Series C round led by a fund whose investors include more than a dozen banks.

Declines in commercial products and mortgage banking fees at the Minneapolis company offset some of the benefits of higher interest rates.

Wells Fargo's new car loans dropped by almost half in the second quarter, while its automotive portfolio fell to the lowest level in two years after the San Francisco-based company tightened underwriting standards.

Banco Santander plans to go ahead with a proposal to increase control of its U.S. subprime auto loan unit, after the business passed the Fed's stress test last month, according to people familiar with the matter.