Huntington Grows Portfolio Amid Super-Prime Push

Huntington Auto Finance managed to grow its portfolio by 8% year over year while originating loans at higher super-prime credit tiers, the bank reported during its first-quarter earnings call last week.

The Columbus, Ohio-based bank held auto balances of $12.1 billion during the quarter compared with $11.2 billion the same time the year prior.

Huntington’s originations remained flat year over year at $1.4 billion but was still able to provide a lift to the portfolio despite tightening credit standards. Average Fico scores were up five points to 766, average loan to value ratios were down one basis point to 87%, and the percentage of new-vehicles financed rose to 48% compared with 45% the comparable period the year prior.

Dealer floorplan volume rose 0.72% as well to $4.22 billion despite losing 18 dealers compared to 1Q17 results.

Higher credit metrics also drove better performance. Delinquencies more than 30 days past due made up 0.75% of the portfolio down 16 basis points year over year. Likewise, charge-offs made up 0.42% of the portfolio down from 0.5% in the first quarter 2017.

Huntington noted that charge-offs in its auto portfolio spiked in 2016 when it bought FirstMerit but are now starting to come down. Still, yields were five basis points lower compared to 4Q17 because, “we’re seeing run-off from purchase accounting entries on that [auto] book,” Chief Executive and President Steve Steinour said on the call.