Following years of powersports finance industry expansion — including new entrants and growing dealer networks — lenders are targeting geographic growth in an effort to compete.
The powersports finance industry will experience more growth next year, despite some “unevenness” in the space lately largely driven by weather-related conditions, MotoLease LLC Chief Executive and President Maurice Salter said at PowerSports Finance 2017.
“Will there be a recession? Maybe or maybe not,” Salter told attendees. “Overall we think there will be growth next year. I think there is growth for everyone. If there is [growth], the industry will take advantage of the fact that we are bringing new products, new ideas, and new methods to industry to help it grow.”
As such, several powersports lenders have announced their plans to expand into additional states, and some even nationally.
Here are five lenders with geographic expansion on the roadmap:
1. Huntington Bancshares Inc.
Huntington Bank continues to focus on its recreational lending business, following the expansion of subsidiary FirstMerit Corp. into 17 additional states earlier this year, according to the bank’s recent third-quarter earnings call. Huntington Bank continues to “execute on the significant revenue enhancement opportunities,” which includes RV and marine lending expansions, Steve Steinour, Huntington’s president and chief executive, said on the call late last month.
In August 2016, Huntington completed the acquisition of Akron, Ohio-based FirstMerit for $3.4 billion to enhance its footprint in the Midwest.
“We really like the boat and RV book,” added Daniel Neumeyer, Huntington’s senior executive vice president and chief credit officer. “We think that is a real plus that we picked up through the acquisition, a business model and a team that is very skilled. We’ve supplemented that with external hires who have experience in the business.”
