First Niagara looks to be taking its foot off the gas on auto loans in 2015.
During its fourth-quarter earnings call on Jan. 23, First Niagara Financial Group’s chief financial officer Gregory Norwood said the company would “moderate its net indirect auto loan growth in 2015 significantly.” Norwood made the announcement as the company posted results that its indirect auto business and C&I portfolios yielded lower returns than its commercial real estate portfolio.
During the fourth quarter, First Niagara originated about $280 million in indirect auto loans with an average Fico score of 763. Average indirect auto loans increased $154 million to $2.1 billion. Average commercial loans, which includes commercial business and commercial real estate loans, increased to $13.9 billion, up 6% from the same quarter a year ago.
