Probing for Profitability: How Regional Banks are Adjusting to the Highly Competitive Space

There has been a concerted effort across the industry to pull back in auto lending and chase quality auto loans rather than volume for volume’s sake. While some lenders have managed to tighten credit quality as they grow or maintain their portfolios, regional banks have had a more pronounced pullback from the space. Fifth Third […]

• William Hoffman
• July 19, 2018
• Carousel, Features, Operations

Fifth Third Merges With MB Financial, Absorbs Powersports Portfolio

Fifth Third Bank announced it’s acquiring Chicago-based MB Financial Bank earlier this week, along with the company’s powersports portfolio. It’s unclear at this time how the merger will impact the powersports space more generally, but one OEM — Vanderhall Motor Works — is not letting the move derail its pursuits to partner with lenders such as MB […]

• William Hoffman
• May 24, 2018
• Carousel, Powersports, Risk

Congress Rolls Back Dodd-Frank Rules, Relieves Banks of Stress Test Requirements

Fewer than 10 banks will be required to submit stringent stress test analysis to federal regulators following Congress’ passage of bipartisan legislation designed to rollback Obama-era financial regulation. The House voted 258-159 to roll back parts of the 2010 Dodd-Frank Act, which will now designate banks with assets above $250 billion as “systemically important financial […]

• William Hoffman
• May 23, 2018
• Carousel, Compliance

Fifth Third to Acquire MB Financial During Credit Tightening Period for Auto

Fifth Third Bancorp announced plans to buy MB Financial for $4.7 billion today, folding the Chicago-based bank’s growing auto portfolio into Fifth Third’s. The merger is still subject to regulatory approval, but Fifth Third has indicated that it plans to keep a number of MB Financials senior leadership in various roles and noted the similarities […]

• William Hoffman
• May 21, 2018
• Archives, Carousel, Earnings, Operations

Lingering CFPB Consent Order Restricts 3 Lenders to Lower Dealer Markups

As the industry returns to the standard 200- to 250-basis-point cap on dealer markup, three lenders are bound to old consent orders with lower caps that put them at a competitive disadvantage, lawyers told Auto Finance News. Fifth Third Bank, Toyota Financial Services, and American Honda Finance Corp. face a 125-basis-point markup cap based on […]

• William Hoffman
• February 26, 2018
• All Posts, Carousel, Compliance, Strategy

Fifth Third’s Auto Outstandings Continue to Decline Amid Pullback

Fifth Third Bank’s auto loans and leases outstanding dropped 10% in the fourth quarter, the bank reported in an earnings call this morning. Fifth Third did not break out originations specifically, but the bank’s balances dropped to $9.2 billion in the fourth quarter compared with $10.2 billion compared to the same period the year prior. […]

• Matthew Wood
• January 23, 2018
• Carousel, Earnings

TCF Bank Tops List of CFPB Complaint Offenders

TCF Bank — having exited the auto finance space at yearend — topped the 2017 list of banks with the most complaints per $1 billion in deposits in the Consumer Financial Protection Bureau’s database, according to data compiled by LendEDU. The Minnesota-based bank topped the list for the second year in a row with 13.6 […]

• William Hoffman
• January 5, 2018
• Carousel, Compliance

Auto Securitization Report Highlights Riskier Outliers

AmeriCredit and Santander Consumer USA stand out as the two lenders securitizing auto loans with an average loan term above 70 months and below a 600 credit score, according to the latest report from DBRS. In AmeriCredit’s most recent issuance included in the report the lender had an average credit score of 580 and an […]

• William Hoffman
• December 15, 2017
• Carousel, Credit Performance, Risk