General Motors Financial continues to move away from a company that predominantly generates subprime paper.

During the first quarter when the company saw its net income rise to $164 million, representing a climb of 14 million, GM Financial president and chief executive officer Dan Berce highlighted how much more prime paper the company originated during the span that concluded on March 31.

“Our mix of credit continues to migrate towards prime,” Berce said in prepared remarks when GM Financial reported its Q1 results last week.

“In fact, for the March quarter of 2016, 68.3 percent of our originations were prime, that's up from 53.4 percent a year ago,” he continued. “I want to point out that the absolute level of our near and subprime lending is up year-over-year, but the proportion of our total is down respectively at 13.3 percent for near-prime and 18.4 percent for subprime.

“I want to point out that our finance receivables, which are considered subprime or with FICO scores less than 620 still comprised 57 percent of our total North America retail loan portfolio,” Berce went on to say. “So as we blend in more and more prime originations in the future, our credit metrics will improve over time. Recovery rates were down a bit year-over-year to 54 percent, up seasonally from December 2015. We do expect a modest deterioration in recovery rates as we go throughout 2016.”

GM Financial’s retail loan originations came in at $4.1 billion for Q1, which was equal to the year-ago figure but down on a sequential basis as the company generated $4.4 billion in the closing quarter of 2105.

The company’s outstanding balance of retail finance receivables stood at $30.3 billion as of March 31.

Likely the entire industry has seen, GM Financial’s lease activity gained steam in Q1. The company’s first-quarter operating lease originations totaled $6.8 billion, up from $5.4 billion in Q4 2015 and $3.0 billion Q1 2015.

The company indicated that its retail finance receivables standing at 31 to 60 days delinquent represented 3.1 percent of its portfolio at close of the first quarter, down from 3.4 percent a year earlier. GM Financial’s accounts more than 60 days delinquent came in at 1.4 percent of the portfolio; the same reading at the end of Q1 2015.

GM Financial noted its annualized net credit losses represented 1.9 percent of average retail finance receivables for the quarter, 1 basis point higher year-over-year.

The outstanding balance of commercial finance receivables stood at $9.2 billion, up from what GM Financial had to close 2015 ($8.4 billion) and last year’s first quarter ($7.6 billion).

The company reported that it had total available liquidity of $12.7 billion as of March 31 consisting of $2.9 billion of cash and cash equivalents, $8.4 billion of borrowing capacity on unpledged eligible assets, $0.4 billion of borrowing capacity on committed unsecured lines of credit and $1.0 billion of borrowing capacity on a Junior Subordinated Revolving Credit Facility from GM.