Auto loans at Valley National Bank increased to $1.1 billion as of Sept. 30, up from $863 million reported the same time last year. The bank said it had not deviated from its conservative underwriting standards, nor participated in subprime auto lending to achieve it’s growth. “We limit the loan pretty much to 100% of the invoice, not the list price on the car,” Chairman and Chief Executive Gerald Lipkin said during an earnings call Wednesday.
“We see competition lending 150% of the list price on the car, which is crazy. And we’re running an average [credit score] probably in the 760s. So the quality of what we’re putting on is very strong.” Auto loans have an average duration of less than three years, he said, adding that the asset class “has always been a great source of liquidity at our bank, and we’re really pleased with what we’re seeing coming in.”
