Regions Financial Corp.’s indirect lending balances decreased overall by 2.78% — to $3.94 billion — according to its first quarter earnings.
However, when you remove activity from third-party partners, the company’s indirect vehicle portfolio actually grew 3.8%, the earnings report states. Indirect vehicle balances — excluding those made from third-party partners — totaled $2.1 billion up from $2.03 billion during the same period last year.
Broken out, third-party indirect auto loans were at $1.83 billion in the first quarter.
The bank is also expecting a $500 to $600 million decrease in auto loan balances made through third party partners in 2017, following the lender’s exit from one of the platforms it used to partner with, the company disclosed today.
A spokeswoman told Auto Finance News that Regions is not disclosing which platform it exited, but the move has already resulted in a a 9.4% decrease in third-party indirect auto loans year over year, from $2.03 billion during the same period last year.
Delinquencies and charge-offs also rose in 1Q. Net charge-offs grew to $10 million up from $8 million last year.
Delinquencies 30 to 89 days past due grew 4.08% to $51 million, while delinquencies 90 days past due stayed flat year over year.
