Valley National Bank’s auto loans decreased by $46.3 million in the second quarter, or 15.6%, to $1.1 billion, according to the company’s earnings released today. “Our new indirect auto loan volumes did not keep pace with the normal portfolio repayment activity in the second quarter of 2016, as was also experienced in the linked first quarter of 2016,” the bank wrote in its 8-K filing.
The decline in indirect auto originations during the first half of the year was “largely caused [by] current market loan pricing and fee constraints resulting from recent regulatory lending guidance,” according to Valley National.
The bank has also started to implement strategies to enhance new auto volume, which includes technology geared toward improving the decision-making process for its dealer network, according to the 8-K. The enhancements and new growth opportunities in Florida are expected to lead to higher new loan volumes, the company wrote.
