BB&T Corp.’s auto loan volumes — especially among prime borrowers — continue to decline with the company expecting “stabilization” by 2018, according to its second-quarter earnings today.
The North Carolina-based bank continues to price prime auto loans at a level that “improves profitability and returns,” which resulted in a 17.6% drop in prime auto loans compared with the first quarter, according to the report. Auto loan volumes overall decreased by 2.9% quarter over quarter.
Despite these declines, the bank’s auto portfolio gained a $267 million boost from a late 1Q17 portfolio acquisition. In 2016, BB&T purchased Susquehanna Bank and National Penn Bank to expand its footprint in Pennsylvania, and BB&T is considering more acquisitions this year, Kelly King, BB&T chief executive, said during a June conference.
Delinquencies and net charge-offs both grew modestly in the second quarter. The bank charged off 1.7% of its auto portfolio during the quarter, up from 1.5% during the same period last year. Delinquent loans 30- to 89-days past due grew to 6.6% of the total portfolio, up 20 basis points year over year.
BB&T does not breakout specific auto origination or outstandings numbers for a year over year comparison, but last year in full, the company held an auto portfolio of $16.5 billion on $8.3 billion in originations, according to Big Wheels Auto Finance 2017.
