TCF Financial in Wayzata, Minn., realized the benefits of higher interest rates in the second quarter.

The $22.1 billion-asset company on Monday reported earnings of $55.6 million, or 5% more than a year earlier. Earnings per share were 33 cents, or 3 cents higher than the consensus among analysts’ estimates compiled by FactSet Research Systems.

Net interest income rose 7% to $227.2 million. The net interest margin soared 17 basis points to 4.52%. The provision for credit losses increased 47% to $18.5 million, mostly from issues in the company’s auto and commercial portfolios.

Total loans, meanwhile, grew 3% to $18.4 billion, thanks to the auto finance and commercial lending categories.

Fee-based income fell 3% to $114.7 million. The declines occurred nearly across the board, with exceptions in leasing and servicing-related lines of business.

Noninterest expenses rose 3%, to $233.1 million, on a mix of higher costs associated with occupancy, lease depreciation and repossessed assets.

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Kristin Broughton

Kristin Broughton

Kristin Broughton is a reporter for American Banker, where she writes about the business of national and regional banking.