M&T Bank increased floorplan lending to dealers by $123 million due to seasonality in the quarter, according to the bank’s fourth-quarter earnings call.
Previously, the bank experienced a 3% drop in floorplanning year over year during the third quarter 2017, reporting a $228 million windfall. The company only cited “seasonality” as a reason for the drop at the time. The company was able to rebound about half of those third-quarter losses in auto floorplan in the fourth quarter but saw the segment down overall. A year over year comparison is not available in earnings.
While the company did not break down specific auto information, consumer loans were up 3%, largely driven by a growth in auto, said Darren King, M&T Bank’s executive vice president and chief financial officer, on the call.
“Growth in indirect auto and recreation finance loans continue to outpace declines in home equity lines and loans,” King said.
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