Citizens One Originations Drop in 2Q as Portfolio Runoff Continues

Citizens One Auto Finance originated $12.5 billion worth of auto loans, a 6.7% decline year-over-year, according to the company’s Q2 earnings release today.

The bank held $62 million in non-performing auto assets during the quarter — up from $55 million the comparable quarter. Yet, improved recoveries helped off-set the increase as net charge-offs decreased to $18 million compared with $22 million the year prior.

Additionally, average loans and lease balances decreased by 6.6% year over year to $12.6 billion. Retail loan growth was partially offset by the planned reduction in auto lending, the report noted.

At the beginning of the year, the bank announced that it purposely decreased its auto portfolio by 5% in 2017 and expected another $2 billion to $3 billion runoff in the coming years to improve profitability, the company said.

In the coming years the portfolio will “gradually” decline to $10 or $11 billion, Chief Financial Officer John Woods said at the time.

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As Associate Editor of Auto Finance News, Nicole Casperson reports on the latest news and trends impacting the auto finance space. As an experienced business reporter from Texas, she previously covered the housing and mortgage industry. Former bylines include Dallas-based DSNews and MReport magazines.