M&T Feeling Auto Loan Pain

M&T Bank Corp. is fully aware that the auto industry is not selling the cars that it used to. The bank has seen its own assets decline as they are not writing the auto loans that they are used to writing. The economy and interest rates have people not wanting to get auto loans, and it is a trickle down effect.

The bank reporting 13% less in sales for their auto loans in their first quarter, and although they still had a net income of $176 million – last year for the same time period it was $203 million. They had a rise in car loan losses as well as non-performing auto loans.

The company released a statement saying that because there are less automobiles being sold, there are less auto loans out there to be had. They say that the lack of auto loans is adding to their “deteriorating financial results” and that it has been difficult for them to earn more money.

Non-performing auto loans were $273 million, up from $143 million last year. In fact, they had a total of $224 million non-performing loans at the end of last year, so they have already surpassed the number of non-performing auto loans for the previous year.

The company also said that the majority of their non-performing auto loans came from two commercial relationships, which ended up totaling $40 million. Without this, they would have been looking at only $233 million in losses.

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