Huntington Bancshares Inc., reports that auto finance continued to perform well in the second quarter.
Net charge-offs were down 16 basis points quarter-over-quarter to 0.29 percent.
The bank also reported improvement in the indirect auto portfolio compared to the prior quarter mostly due to seasonality.
Huntington Bancshares Inc. increased its prime rate in response to the recent Federal Reserve hike.
Huntington now charges 4 percent on prime loans, up from 3.75 percent.
Huntington’s prime rate was last changed on Dec. 15, when the bank increased it from 3.50 percent.
Huntington Bancshares Inc. reported a $1.6 billion, or 17 percent, increase in automobile loans in the fourth quarter.
Huntington also completed a $1.5 billion auto loan securitization during the quarter.
The bank also reported a $0.6 billion increase in automobile dealer floor planning.
The primary driver of all increases was the third-quarter acquisition of FirstMerit.
Huntington Bancshares Inc. announced that its prime rate is increasing.
The rate rose to 3.75 percent from 3.50 percent, effective Dec. 15.
The rate was last changed on Dec. 17, 2015, when Huntington increased its prime rate to 3.5 percent from 3.25 percent.
Huntington Bancshares Inc. reported a $2.5 billion, or 28 percent, increase in automobile finance in the third quarter.
This represented the 11th consecutive quarter of greater than $1 billion in automobile finance originations.
Part of this growth came from the mid-quarter acquisition of First Merit Bank.
The bank also grew its automobile dealer floor planning in the third quarter.