Independent Banker - July 2024 - 16

PORTFOLIO
◎FOCUS LENDING
How to drive auto
loan opportunities
By working with local car dealers and using new lending
technology, community banks can boost their presence
in the auto lending sector. By Beth Mattson-Teig
A
uto financing has traditionally
been a tough market for
community banks to tap into due to
stiff competition from larger banks
and captive auto lenders, the financing
subsidiaries of auto manufacturers.
Yet, grabbing even a small slice of the
roughly $1.2 trillion in annual auto
sales can be a lucrative business.
Based on fourth quarter 2023 data
from the National Automobile Dealers
Association (NADA), captive auto
lenders accounted for 61.2% of new
vehicle financing, followed by banks at
20.4%. So, there's plenty to play for.
A key first step for community
banks is to decide where they want
to focus their time and resources. Do
they want to court direct-to-consumer
lending, forge a path into indirect
auto financing within dealerships, or
leverage a combination of the two?
Auto financing veteran
1st National Bank of Scotia in
Scotia, N.Y., is a veteran when
it comes to auto financing. The
$660 million-asset community bank
has been active in the space since it first
opened its doors in 1923.
Although the bank participates
in both direct and indirect auto
financing, indirect lending is its bigger
focus today; it accounts for 25% to
30% of the community bank's total
lending volume.
1st National Bank has built
relationships with 90 dealers, roughly
half of which send the bank deals on
a monthly basis. One of the secrets
to that success is good old-fashioned
networking. The community bank's
team of lenders, which includes a
retired auto dealer, routinely reach out
and visit dealerships, sitting down for
a cup of coffee to stay connected.
According to president and CEO
John Buhrmaster, dealers choose to
do business with and finance their
auto loans through community banks
16 // ICBA Independent Banker // July 2024
Photo by delihayat/iStock

Independent Banker - July 2024

Table of Contents for the Digital Edition of Independent Banker - July 2024

Contents
Independent Banker - July 2024 - Cover1
Independent Banker - July 2024 - Cover2
Independent Banker - July 2024 - Contents
Independent Banker - July 2024 - 2
Independent Banker - July 2024 - 3
Independent Banker - July 2024 - 4
Independent Banker - July 2024 - 5
Independent Banker - July 2024 - 6
Independent Banker - July 2024 - 7
Independent Banker - July 2024 - 8
Independent Banker - July 2024 - 9
Independent Banker - July 2024 - 10
Independent Banker - July 2024 - 11
Independent Banker - July 2024 - 12
Independent Banker - July 2024 - 13
Independent Banker - July 2024 - 14
Independent Banker - July 2024 - 15
Independent Banker - July 2024 - 16
Independent Banker - July 2024 - 17
Independent Banker - July 2024 - 18
Independent Banker - July 2024 - 19
Independent Banker - July 2024 - 20
Independent Banker - July 2024 - 21
Independent Banker - July 2024 - 22
Independent Banker - July 2024 - 23
Independent Banker - July 2024 - 24
Independent Banker - July 2024 - 25
Independent Banker - July 2024 - 26
Independent Banker - July 2024 - 27
Independent Banker - July 2024 - 28
Independent Banker - July 2024 - 29
Independent Banker - July 2024 - 30
Independent Banker - July 2024 - 31
Independent Banker - July 2024 - 32
Independent Banker - July 2024 - 33
Independent Banker - July 2024 - 34
Independent Banker - July 2024 - 35
Independent Banker - July 2024 - 36
Independent Banker - July 2024 - 37
Independent Banker - July 2024 - 38
Independent Banker - July 2024 - 39
Independent Banker - July 2024 - 40
Independent Banker - July 2024 - 41
Independent Banker - July 2024 - 42
Independent Banker - July 2024 - 43
Independent Banker - July 2024 - 44
Independent Banker - July 2024 - 45
Independent Banker - July 2024 - 46
Independent Banker - July 2024 - 47
Independent Banker - July 2024 - 48
Independent Banker - July 2024 - 49
Independent Banker - July 2024 - 50
Independent Banker - July 2024 - 51
Independent Banker - July 2024 - 52
Independent Banker - July 2024 - 53
Independent Banker - July 2024 - 54
Independent Banker - July 2024 - 55
Independent Banker - July 2024 - 56
Independent Banker - July 2024 - 57
Independent Banker - July 2024 - 58
Independent Banker - July 2024 - 59
Independent Banker - July 2024 - 60
Independent Banker - July 2024 - 61
Independent Banker - July 2024 - 62
Independent Banker - July 2024 - 63
Independent Banker - July 2024 - 64
Independent Banker - July 2024 - 65
Independent Banker - July 2024 - 66
Independent Banker - July 2024 - 67
Independent Banker - July 2024 - 68
Independent Banker - July 2024 - 69
Independent Banker - July 2024 - 70
Independent Banker - July 2024 - 71
Independent Banker - July 2024 - 72
Independent Banker - July 2024 - 73
Independent Banker - July 2024 - 74
Independent Banker - July 2024 - 75
Independent Banker - July 2024 - 76
Independent Banker - July 2024 - Cover3
Independent Banker - July 2024 - Cover4
https://www.nxtbook.com/mspc/independentbanker/july2024
https://www.nxtbook.com/mspc/independentbanker/june2024
https://www.nxtbook.com/mspc/independentbanker/may2024
https://www.nxtbook.com/mspc/independentbanker/april2024
https://www.nxtbook.com/mspc/independentbanker/march2024
https://www.nxtbook.com/mspc/independentbanker/february2024
https://www.nxtbook.com/mspc/independentbanker/january2024
https://www.nxtbook.com/mspc/independentbanker/december2023
https://www.nxtbook.com/mspc/independentbanker/november2023
https://www.nxtbook.com/mspc/independentbanker/october2023
https://www.nxtbook.com/mspc/independentbanker/september2023
https://www.nxtbook.com/mspc/independentbanker/august2023
https://www.nxtbook.com/mspc/independentbanker/july2023
https://www.nxtbook.com/mspc/independentbanker/june2023
https://www.nxtbook.com/mspc/independentbanker/may2023
https://www.nxtbook.com/mspc/independentbanker/april2023
https://www.nxtbook.com/mspc/independentbanker/march2023
https://www.nxtbook.com/mspc/independentbanker/february2023
https://www.nxtbook.com/mspc/independentbanker/january2023
https://www.nxtbook.com/mspc/independentbanker/december2022
https://www.nxtbook.com/mspc/independentbanker/november2022
https://www.nxtbook.com/mspc/independentbanker/october2022
https://www.nxtbook.com/mspc/independentbanker/september2022
https://www.nxtbook.com/mspc/independentbanker/august2022
https://www.nxtbook.com/mspc/independentbanker/july2022
https://www.nxtbook.com/mspc/independentbanker/june2022
https://www.nxtbook.com/mspc/independentbanker/may2022
https://www.nxtbook.com/mspc/independentbanker/april2022
https://www.nxtbook.com/mspc/independentbanker/march2022
https://www.nxtbook.com/mspc/independentbanker/february2022
https://www.nxtbook.com/mspc/independentbanker/january2022
https://www.nxtbook.com/mspc/independentbanker/december2021
https://www.nxtbook.com/mspc/independentbanker/november2021
https://www.nxtbook.com/mspc/independentbanker/october2021
https://www.nxtbook.com/mspc/independentbanker/september2021
https://www.nxtbook.com/mspc/independentbanker/august2021
https://www.nxtbook.com/mspc/independentbanker/july2021
https://www.nxtbook.com/mspc/independentbanker/june2021
https://www.nxtbook.com/mspc/independentbanker/may2021
https://www.nxtbook.com/mspc/independentbanker/april2021
https://www.nxtbook.com/mspc/independentbanker/march2021
https://www.nxtbook.com/mspc/independentbanker/february2021
https://www.nxtbook.com/mspc/independentbanker/january2021
https://www.nxtbook.com/mspc/independentbanker/december2020
https://www.nxtbook.com/mspc/independentbanker/november2020
https://www.nxtbook.com/mspc/independentbanker/october2020
https://www.nxtbook.com/mspc/independentbanker/september2020
https://www.nxtbook.com/mspc/independentbanker/august2020
https://www.nxtbook.com/mspc/independentbanker/july2020
https://www.nxtbook.com/mspc/independentbanker/june2020
https://www.nxtbook.com/mspc/independentbanker/may2020
https://www.nxtbook.com/mspc/independentbanker/april2020
https://www.nxtbook.com/mspc/independentbanker/march2020
https://www.nxtbook.com/mspc/independentbanker/february2020
https://www.nxtbook.com/mspc/independentbanker/january2020
https://www.nxtbook.com/mspc/independentbanker/december2019
https://www.nxtbook.com/mspc/independentbanker/november2019
https://www.nxtbook.com/mspc/independentbanker/october2019
https://www.nxtbook.com/mspc/independentbanker/september2019
https://www.nxtbook.com/mspc/independentbanker/august2019
https://www.nxtbook.com/mspc/independentbanker/july2019
https://www.nxtbook.com/mspc/independentbanker/june2019
https://www.nxtbook.com/mspc/independentbanker/may2019
https://www.nxtbook.com/mspc/independentbanker/april2019
https://www.nxtbook.com/mspc/independentbanker/march2019
https://www.nxtbook.com/mspc/independentbanker/february2019
https://www.nxtbook.com/mspc/independentbanker/january2019
https://www.nxtbook.com/mspc/independentbanker/december2018
https://www.nxtbook.com/mspc/independentbanker/november2018
https://www.nxtbook.com/mspc/independentbanker/october2018
https://www.nxtbook.com/mspc/independentbanker/september2018
https://www.nxtbook.com/mspc/independentbanker/august2018
https://www.nxtbook.com/mspc/independentbanker/july2018
https://www.nxtbook.com/mspc/independentbanker/june2018
https://www.nxtbook.com/mspc/independentbanker/may2018
https://www.nxtbook.com/mspc/independentbanker/april2018
https://www.nxtbook.com/mspc/independentbanker/march2018
https://www.nxtbook.com/mspc/independentbanker/february2018
https://www.nxtbook.com/mspc/independentbanker/january2018
https://www.nxtbook.com/mspc/independentbanker/december2017
https://www.nxtbook.com/mspc/independentbanker/november2017
https://www.nxtbook.com/mspc/independentbanker/october2017
https://www.nxtbook.com/mspc/independentbanker/september2017
https://www.nxtbook.com/mspc/independentbanker/august2017
https://www.nxtbook.com/mspc/independentbanker/july2017
https://www.nxtbook.com/mspc/independentbanker/june2017
https://www.nxtbook.com/mspc/independentbanker/may2017
https://www.nxtbook.com/mspc/independentbanker/april2017
https://www.nxtbookmedia.com