Wells Fargo Auto, Chase Auto originations jump in Q2

National and regional bank second-quarter earnings point to mixed performance as larger banks lean into auto production while regional banks held steady or scaled back amid market volatility.

Wells Fargo Auto, for one, reported a 40.6% year-over-year increase in originations in Q2, while Chase Auto's originations rose 8.9% YoY. Bank of America's auto book shrank.

Regional banks saw improvement in auto portfolio delinquencies, but portfolio growth was mixed. Fifth Third Bank's 30- to 89-day delinquencies across its indirect secured consumer portfolio, made up of 84% auto loans, fell 11 basis points (bps) YoY, though net charge-offs inched up 3 bps YoY.

U.S. Bank's indirect loan and lease originations, which include auto, increased 61.2% YoY, while PNC Financial's auto portfolio ticked down 0.1% YoY. Truist reduced lending in prime and nonprime auto and discontinued originations and RV and marine loans.

Buy here, pay here dealer America’s Car-Mart's net charge-offs also rose as sales declined 27.1% YoY and the company eyes restructuring and financial challenges. The Rogers, Ark.-based retailer cut its number of dealerships by 60 locations, or 39%, YoY to 94.

In powersports, EV manufacturer Lightship is rolling out consumer financing options for its electric-assist RV trailer.

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Aidan Bush and Associate Editor C.J. Moore discuss second-quarter trends across credit performance, portfolio growth, originations, sales and funding.