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Sheffield Reports Jump in Past-Dues, Net Charge-Offs in 4Q

  • Natalie Mattila
  • February 11, 2016
  • 0

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Fourth quarter 2015 loan originations for Sheffield Financial were not as robust as they were in 4Q14, Jack Snow, Sheffield’s founder, president, and chief executive, told Powersports Finance.

The company saw a downturn in 4Q15, versus last year, with only a 4% increase — down from a 9% increase at the same time a year prior, due to the lack of snow, he added. However, the company saw a much stronger year-over-year growth with a 12% increase over the same time a year prior, versus a 2% increase from 2013 to 2014, said Snow.

“In 4Q of 2015, we also saw our past-dues jump maybe two or three basis points, and we saw our net charge-offs go up in the same quarter,” said Snow. “When we sliced and diced that information, we saw that it was in the energy-producing states. All the other states were pretty average.”

Sheffield predicts a flat year for powersports in general, according to Snow. “If you look at the energy-producing states — because of the dropping in oil prices — we think [loan originations are] going to be down in those states, but that’s a two-edged sword,” he said. “If the gas prices continue to be low, then people are going to ride.” On the other hand, there’s been significant job loss in those states, Snow added.

Despite dropping oil prices and the overall industry outlook for the year, Sheffield still predicts a 9% increase in year-over-year loan originations for 2016, primarily due to the company’s strong OEMs and new products that will come out, said Snow.

Sheffield Financial, based in Clemmons, N.C., has secured contracts with all major OEMs that do not have a finance company or captive, and currently services 14,000 powersports dealers with 750,000 end users.

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