In the first quarter, we generated earnings of $2.43 per share, a 59% increase over the fourth quarter, primarily driven by strong credit quality.
Our ROE grew to over 18% and our ROA was 1.68%.
Last month, Comerica and the Comerica Charitable Foundation pledged approximately $16 million to support small businesses and communities impacted by COVID.
This support is in addition to the $11 million committed in 2020.
As you know, last year, we funded $3.9 billion in the first round of PPP loans.
Also, so far this year, through the hard work of colleagues across the Bank, we further assisted businesses by funding close to $1 billion in the second round of PPP.
In addition, in the first quarter, we processed over $600 million in PPP loan repayments, mainly through forgiveness.
Average deposits increased over $1 billion to another all-time high as customers received additional stimulus payments.
Net interest income was impacted by $17 million in lease residual adjustments in an expiring legacy portfolio.
Excluding this impact, pre-tax pre-provision net revenue increased 5% despite the shorter quarter and the decline in loan volume.
Strong credit performance and an improvement in our economic forecast resulted in a negative provision of $182 million.
The credit reserve remains healthy at 1.59%.
Net charge-offs were only 3 basis points.
With more confidence in the economic recovery and an estimated CET1 ratio of 11.09%, we plan to restart share repurchases.
In the second quarter, we expect to make significant strides toward our 10% target, giving careful consideration to earnings generation, as well as capital needs to fund future loan growth.
Our ongoing goal is to provide an attractive return to our shareholders, which includes a dividend that currently has a yield of about 4%.
Turning to Slide 5, average loans decreased approximately $800 million.
Dealer loans were $1.5 billion below the first quarter of 2020.
Equity Fund Services was a bright spot, increasing over $200 million with strong fund formation.
Total period end loans reflected decreases of $900 million in Dealer and $700 million in Mortgage Banker.
Line utilization for the total portfolio declined to 47%.
As far as loan yields, there were $17 million in lease residual value adjustments, mostly on aircraft and an expiring legacy portfolio.
Excluding the 14 basis point impact from the residual adjustment, loan yields increased 3 basis points with the benefit of accelerated fees from PPP forgiveness.
Average deposits increased 2% or $1.1 billion to a new record as shown on Slide 6.
Consumer deposits increased nearly $1 billion, primarily due to seasonality and the additional stimulus received in January.
With strong deposit growth, our loan-to-deposit ratio decreased to 69%.
The average cost of interest-bearing deposits reached an all-time low of 8 basis points, a decrease of 3 basis points from the fourth quarter and our total funding cost fell to only 9 basis points.
Lower rates on the replacement of about $1 billion in payments received during the quarter resulted in the yield on the portfolio declining to 1.89%.
Yields on repayments averaged approximately 235 basis points, while recent reinvestments have been in the low-180s.
Turning to Slide 8, excluding the impact of the lease residual adjustment and two fewer days in the quarter, net interest income was roughly stable and the net interest margin would have increased 2 basis points.
As far as the details, interest income on loans decreased $28 million and reduced the net interest margin by 8 basis points.
This was primarily due to the $17 million of lease residual adjustments, which had a 9 basis point impact on the margin, as well as two fewer days in the quarter, which had a $7 million impact.
Lower loan balances had a $5 million impact and were partially offset by a $3 million increase in fees related to PPP loans.
Other portfolio dynamics had a $2 million unfavorable impact and included lower LIBOR, partially offset by pricing actions.
Lower securities yields, as I outlined in the previous slide, had a $2 million or 1 basis point negative impact.
Continued prudent management of deposit pricing added $3 million and 1 basis point to the margin and a reduction in wholesale funding added $1 million and 1 basis point.
Average balances of the Fed were relatively steady and remain extraordinarily high at $12.5 billion.
This continues to weigh heavily on the margin with the gross impact of approximately 41 basis points.
Net charge-offs were only $3 million or 3 basis points.
Non-performing assets decreased $34 million and at 64 basis points of total loans, they are about only half of our 20-year average.
Criticized loans declined $366 million and comprised 5% of the total portfolio.
Our total reserve ratio is very healthy at 1.59% or 1.72% excluding PPP loans and remains well above pre-pandemic levels.
Non-interest income increased $5 million as outlined in Slide 10, sustaining the positive trend we've seen for the past year.
Derivative income increased $11 million as volumes remain robust, particularly for energy hedges, combined with a $10 million benefit from a change in the credit valuation adjustment.
Partly offsetting this, commercial lending fees decreased $6 million with the seasonal decline in syndication activity.
Deferred comp asset returns were $3 million, a $6 million decrease from the fourth quarter and are offset in non-interest expenses.
They were over 20% higher than a year ago due to government card and merchant activity spurred by the economic stimulus and changes in customer behavior related to the COVID environment.
Turning to expenses on Slide 11, which decreased $18 million or 4%.
Starting with salaries and benefits, which were up $11 million due to seasonal factors.
All other expenses decreased $29 million.
As discussed last quarter, strong investment performance in 2020 has resulted in an $8 million reduction in pension costs, which is included in other non-interest expense.
Previous quarters have been adjusted, specifically fourth quarter pension expense was reduced by $8 million.
This change also decreased AOCI and increased retained earnings at year-end by $104 million, which resulted in a 16 basis point increase to our CET1 ratio.
Our CET1 ratio increased to an estimated 11.09% as shown on Slide 12.
We expect to make significant strides toward our CET1 target of 10%.
As far as net interest income, the $17 million lease residual adjustment we took in the first quarter will not recur.

Summary:
In the first quarter, we generated earnings of $2.43 per share, a 59% increase over the fourth quarter, primarily driven by strong credit quality.
Strong credit performance and an improvement in our economic forecast resulted in a negative provision of $182 million.