Ups and downs: Equipment lenders see mixed results in Q3
Midland States’ equipment finance portfolio fell 19.2% YoY
Some lenders ramped up equipment financing activity in the past quarter while others scaled back, hinting that the industry is in flux.
Brookline Bancorp
Brookline Bancorp’s equipment finance loans rose 5.8% year over year to $1.4 billion in the third quarter, according to its Oct. 23 earnings statement.
The Brooklyn, N.Y.-based company reported $3.8 million in net charge offs, driven by $2.6 million in equipment financing. Equipment finance charge offs largely comprised specialty vehicles, the company reported.
Nonperforming equipment finance assets, meanwhile, fell 65.3% YoY to $37.2 million. Specialty vehicles accounted for $4.6 million, Brookline Co-President and Chief Financial Officer Carl Carlson said during the company’s earnings call.
Midland States Bancorp
Effingham, Ill.-based Midland States Bancorp reported $442.6 million in equipment finance loans in Q3, down 23.5% YoY, according to its Oct. 24 earnings statement.
The company’s equipment leases dropped 14% YoY to $417.5 million. Midland’s total equipment leasing and finance portfolio fell 19.2% YoY to $860 million as the firm focuses on other commercial finance sectors such as real estate and construction, according to its Q3 earnings presentation. Midland attributed its decline in outstanding debt to the decision to shrink its equipment finance portfolio.
The company reported $114.6 million in nonperforming loans, up 104.6% YoY. Of the nonperforming loans in Q3, 0.4% were tied to equipment, up 20 basis points YoY.
PNC
Pittsburgh-based PNC Financial Services reported $6.5 billion of equipment leasing loans in Q3, up 1.4% YoY, according to its Oct. 15 earnings supplement.
The company’s net charge offs for equipment lease financing totaled $5 million, up 150% YoY from $2 million. Nonperforming equipment finance assets fell 53.3% YoY to $14 million.
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