FI showroom red and grey logo
MenuMENU
SearchSEARCH

Q2 Auto Originations Total $8.3 Billion for Wells Fargo

Wells Fargo reported second quarter auto originations of $8.3 billion, a 7% gain from the first quarter of the year and a 2% gain from the year prior. Bank officials, however, reported higher delinquencies and net charge-offs.

by Eric Gandarilla
July 26, 2016
2 min to read


SAN FRANCISCO — Wells Fargo reported second quarter auto originations of $8.3 billion, a 7% gain from the first quarter of the year and a 2% gain from the year-ago period.

“ … We are happy with our auto growth; we’ve maintained our pricing and our risk discipline,” said John Shrewsberry, CFO of Wells Fargo.

Ad Loading...

Outstanding balances for the bank's consumer portfolio totaled $61.9 billion, a 2% gain from the previous quarter and a 7% year-over-year gain. Indirect lending accounted for $59.2 billion of that total, while direct lending accounted for $2.7 billion.

Nonaccrual loans were down $3 million from the last quarter and $15 million year-over-year. On a quarter-to-quarter basis, net chargeoffs were down $37 million, primarily due to typically low first quarter delinquencies, officials said. However, on a year-over-year basis, net chargeoffs were up $22 million, reflecting loan growth and higher severity, the finance source reported.

Accounts 30-plus days past due increased by $131 million on a quarter-over-quarter basis and by $154 million on a year-over-year basis.

Total outstanding balances for Wells Fargo’s commercial portfolio were $10.7 billion, a 16% increase from the same time last year and a 4% increase from the previous quarter.

The gains that the finance source saw in its auto portfolios, combined with gains in its commercial and credit card portfolios, led to a $150 million reserve build, Shrewsberry stated.

Ad Loading...

“While our earnings were down $161 million from a year ago, our results in the second quarter last year included a $350 million reserve release while this quarter we had a $150 million reserve build primarily due to loan growth in commercial, auto and the credit card portfolios,” Shrewsberry said.

Wells Fargo reported net income of $5.6 billion during the second quarter, nearly flat compared to the $5.7 billion it reported in the year-ago period. Officials noted that the quarter marked the 15th consecutive quarter the finance source has generated more than $5 billion.

“We produced strong performance during a period that has included persistent low rates, market volatility and economic volatility, and we did it by focusing on the core building blocks of long-term shareholder value creation, that is growing relationships, loans, investments and deposits,” said CEO John Stumpf. “Our loan and investment, and deposit balances are all at record levels and we've maintain our strong risk discipline."

More F&I

Laptop computer on a desk with a notepad and pen next to it and a whiteboard in the background
Digital•by Rick McCormick•October 15, 2026

AI: Facilitator, Not Fixer, in F&I

The dealerships that thrive in the years ahead will be those that embrace technology while continuing to invest in the people who make customer interactions count.

Read More →
Headshot mockup thumbnail.
F&I•October 1, 2026

Modern Technology Objection Handling

In this video, Trent White shares how to confidently handle technology-based objections by helping customers understand the value of protection, even with modern vehicle technology.

Read More →
man standing in front of podium
F&I•by Lauren Lawrence•October 1, 2026

Consistency at Scale: Driving F&I Performance

With 75 rooftops across the Sunshine State, Morgan Auto Group has proven to Floridians that it knows a thing or two about driving performance in a competitive market. But it didn’t start at the top.

Read More →
Ad Loading...
Insurance contract signature page with black inkpen on top
F&I•by Hannah Mitchell•September 22, 2026

Gitty Up on GAP

The foundational finance-and-insurance product hasn’t kept up with the latest conditions for auto dealers. Is the time ripe?

Read More →
Easycare White paper cover See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
Sponsored•September 8, 2026

How AI-Powered Coaching Is Transforming F&I Performance

See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability

Read More →
Assurant, Sell Value Build Trust, F&I Series, Expert Trainer Trent White
F&I•September 2, 2026

Sell Value, Build Trust

In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.

Read More →
Ad Loading...
2026 StoneEagle summary
F&I•by Hannah Mitchell•August 31, 2026

F&I Sales Give Dealers First-Half Lift

Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.

Read More →
man with white hair and glasses delivering a speech standing next to a podium
F&I•by Lauren Lawrence•August 31, 2026

Targeted Training Drives Results

Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.

Read More →
Man's hand holding pen over a paper document
F&I•by Justin B. Gasman•August 20, 2026

Double the Change, Double the Chance

When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.

Read More →
Ad Loading...
Laptop computer, tablet, calculator and notebook on a desk
F&I•by John Tabar•August 20, 2026

Just Do It

F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.

Read More →