Strong revenue and loan growth powered TCF Financial (TCB) to a $39.9 million profit in the first quarter, a 57% increase from the same period in 2013.
The Wayzata, Minn.-based bank's total revenue for the first quarter was $304.7 million, a 4.4% increase from a year ago.
Net income increased 57% from a year ago to $39.9 million, or 24 cents per common share compared to 16 cents a year earlier.
Net interest income rose 1.1% to $201 million driven by higher average loan balances in auto financing and inventory finance businesses. However, this increase was offset by downward pressure on yields in the bank's lending business due to low interest rates and lower average balances of consumer real estate.
Non-accrual loans and leases were $266.7 million through the first quarter, a $76.7 million drop from a year ago.
Net interest margin was 4.66% in the first quarter compared with 4.72% from the same period last year.
The bank originated $422.2 million in loans and leases, up 15.5% from a year earlier. Additionally, average deposits increased year-over-year by $483.9 million to $14.5 billion.
Meanwhile, provision for credit losses fell 62% to $14.5 million as net charge-offs decreased by $23.6 million on a yearly basis to $17.4 million in the first quarter.