SunTrust Banks managed to lower delinquencies and net-charge-offs in its indirect auto portfolio while enhancing its online direct-lending division — LightStream — Allison Dukes, chief financial officer, said during the second quarter earnings call.
“We have lower originations year over year in the second quarter 2018 compared with 2Q17, but with much better performance and profitability,” Charles Jones, head of national indirect lending at SunTrust Banks.
Indirect loan outstandings remained relatively flat at $11.7 billion in the second quarter, up slightly from $11.6 billion the same period last year, according to the bank’s Q2 earnings results. Additionally, delinquencies 30 days or more past due for indirect loans dropped to 0.75% of the portfolio compared with 0.83% last year.
Meanwhile, total net charge-offs decreased to 0.41% of the portfolio in Q218 compared with 0.45% last year. Nonperforming loans increased to $6 million in Q218 compared with $5 million the year prior.
So far, the bank “feels good” about the results delivered, Dukes said during the earnings call.
“Our momentum in LightStream, in particular, is improving, given the work we’ve done to enhance our analytics, new product offerings, and growth in partnerships and referrals,” she said.
LightStream — SunTrust’s San Diego-based online lending division — was established in 2017 as part of a move to improve operations and technologies, Jones told AFN in April. “They’ve been successful at growing since we acquired them five years ago,” Jones said at the time. “Our mission is to fully integrate [LightStream] into every business within the company.”
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