Birmingham, Ala.-based Regions Financial Corp.’s indirect auto portfolio increased 6% to $3.2 billion in the first quarter of 2014, compared to the previous quarter’s $3 billion. One year earlier, in the first quarter of 2013, the bank reported $2.48 billion in indirect loans.
During the company earnings call Tuesday, Regions chief financial officer David Turner told analysts that the bank’s indirect auto lending increased the average number of loans per dealer by 13%. Production increased 4%, and loans increased $178 million, or 6%.
“We expect this portfolio to grow as the demand for automobiles continues to rise, and due to our efforts to increase pull-through rates from the dealers,” he said.
Regions currently works with 6,000 dealers. Turner said the bank wants to be particular with the dealers that it does business with.
“Our strategy now is less about increasing that number as it is penetration of our existing dealers,” he said.
Regions will focus on its existing dealer relationships. The bank said it has proven itself with its technology and service to dealers that allows for faster underwriting decisions. The bank says they see penetration increasing with the existing 2,000 dealers they work with today, rather than expanding that number.Like This Post