Fidelity Bank is shuttering its indirect auto business after nearly 30 years, Auto Finance News has learned.
“Effective May 15, 2019, Fidelity Bank will cease indirect auto originations,” according to a fax distributed to dealers in Florida and Georgia, the two remaining states in the bank’s dwindling auto finance footprint. “Contracts dated May 15, 2019, and prior will be processed through May 29, 2019.”
Fidelity Bank has been steadily retreating from the auto finance space, which it entered in 1990. It exited 10 states starting in late 2017. “Throughout 2018, we have focused on executing our business strategy to re-balance our loan portfolio with higher yielding commercial credits and deemphasize indirect auto lending, which is dependent on our growth,” the company stated in its most recent 10-K filing with the Securities and Exchange Commission.
The Atlanta-based bank had a $1.6 billion auto loan portfolio at yearend 2018, down from $1.7 billion in the prior year, according to Big Wheels Auto Finance Data 2019. Its parent company, Fidelity Southern Corp., announced a merger with Moultrie, Ga.-based Ameris Bancorp in December 2018. The transaction is expected to close this quarter.
Fidelity is the second bank to exit the indirect market this year. Birmingham, Ala.-based Regions Bank discontinued its auto business in February.
Fidelity Bank was not available for comment at press time.
