Regional equipment financiers Western Alliance Bank, Huntington Bank and PNC Bank experienced a rise in their lease financing and commercial and industrial portfolios during the second quarter.
Western Alliance Bank C&I loans rise
Phoenix-based Western Alliance Bank’s commercial and industrial (C&I) loan outstandings totaled $24.9 billion, up 14.7% year over year, according to the company’s July 18 earnings call. Western Alliance’s C&I portfolio includes working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and loans to tax-exempt municipalities and nonprofit organizations.
Western Alliance Bank’s total borrowings increased $1.9 billion in the second quarter on the back of positive C&I loan performance, Vice Chairman and Chief Financial Officer Dale Gibbons said during the call.
“C&I continues to lead this loan momentum, contributing over two-thirds of the quarterly growth from both regional and national businesses,” he said. “Regional banking produced over $660 million of loan growth, with C&I contributions from in-market commercial banking and innovation and technology banking, while homebuilder finance drove the CRE increase for the bank.”
Western Alliance Bank CEO and President Kenneth Vecchione also discussed plans to unite the bank’s brands under the Western Alliance Bank name by the end of 2025.
“These brands have operated under the Western Alliance Bank charter for over a decade, so this action will simply present a unified marketing present emblematic of the much larger national bank Western Alliance has become,” he said. “Importantly, we are encouraged by the inflection profitability experienced in Q2.”
The rebranding will affect six divisions: Alliance Association Bank, Alliance Bank of Arizona, Bank of Nevada, Bridge Bank, First Independent Bank and Torrey Pines Bank. The bank’s AmeriHome Mortgage and Western Alliance Trust Co. subsidiaries will retain their names.
Huntington lease financing grows
Columbus, Ohio-based Huntington Bank’s lease financing portfolio totaled $5.5 billion in Q2, up 1.2% quarter over quarter and 6% year over year, according to the bank’s July 18 earnings supplement. Huntington’s commercial and institutional loan outstandings landed at $60.7 billion in Q2, up 5% QoQ and 26% YoY.
The bank reported lease financing net recoveries of 0.12%, compared with net charge-offs of 0.33% in the previous quarter and 0.02% in Q2 2024. The bank’s allowance for credit losses on lease financing totaled $63 million, down 6.3% QoQ and 17.6% YoY.
PNC lease financing up 5%
Pittsburgh-based PNC Financial Services’ equipment lease financing portfolio reached $6.8 billion in Q2, up 1.6% QoQ and 4.8% YoY, according to its July 16 earnings supplement. The company’s commercial and industrial portfolio totaled $184.7 billion, up 4.2% QoQ and 4.3% YoY.
In addition, PNC’s net charge-offs for equipment lease financing increased 66.7% QoQ and 150% YoY in Q2 to $5 million, while commercial and industrial portfolio charge-offs increased 8% QoQ but decreased 39.7% YoY to $41 million, according to the earnings supplement. Nonperforming equipment finance assets increased 80% QoQ and 125% YoY to $36 million to end Q2.
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