M&T Bank increased floorplan lending to dealers by $123 million due to seasonality in the quarter, according to the bank’s fourth-quarter earnings call.
Previously, the bank experienced a 3% drop in floorplanning year over year during the third quarter 2017, reporting a $228 million windfall. The company only cited “seasonality” as a reason for the drop at the time. The company was able to rebound about half of those third-quarter losses in auto floorplan in the fourth quarter but saw the segment down overall. A year over year comparison is not available in earnings.
While the company did not break down specific auto information, consumer loans were up 3%, largely driven by a growth in auto, said Darren King, M&T Bank’s executive vice president and chief financial officer, on the call.
“Growth in indirect auto and recreation finance loans continue to outpace declines in home equity lines and loans,” King said.
For more content like this, attend the third annual Auto Finance Innovation event, slated for March 7-8, at the Parc 55 in San Francisco. For information, or to register, visit autofinanceinnovation.com.
