Includes the acquisition of $1.1 billion and an additional sub-servicing conversion of $0.5 billion of auto loan assets
The transaction demonstrates SC is a servicer of choice for auto assets having acquired or converted more than $2.6 billion in auto assets across two transactions since 2018
DALLAS, Dec. 18, 2019 /PRNewswire/ -- Santander Consumer USA Holdings Inc. (NYSE: SC) ("SC" or the "Company"), today announced it has completed the acquisition of a $1.1 billion indirect auto loan portfolio from Gateway One Lending & Finance ("Gateway One"), a subsidiary of TCF National Bank and an indirect subsidiary of TCF Financial Corporation.
"Santander Consumer USA has demonstrated its ability over many years to partner with other large, and well-regarded financial institutions to leverage our best-in-class servicing platform," said Mahesh Aditya, SC President and CEO. "This transaction marks another highlight for 2019, a year in which we reached a mutually beneficial agreement with Fiat Chrysler, made important leadership appointments and continued optimizing capital through an increased dividend and a robust share repurchase plan."
The transaction also includes an additional conversion of $0.5 billion of indirect auto loan assets, which the Company will sub-service for Gateway One. For more than a decade, SC's Serviced for Others business has offered end-to-end servicing with high performance standards and robust compliance. As of September 30, 2019, SC serviced approximately $10 billion in auto assets for six financial institutions.
Fahmi Karam, SC Chief Financial Officer, added, "We are excited to announce this transaction with Gateway One as it aligns with two of our key priorities, to be opportunistic on portfolio acquisitions and to leverage our servicing platform to drive fee income. This transaction is another example of the value we can provide to third parties when partially or completely outsourcing their servicing needs. We are continuously identifying and evaluating strategic ways to deploy capital that are accretive to our business and add shareholder value."
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions, or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as anticipates, believes, can, could, may, predicts, potential, should, will, estimates, plans, projects, continuing, ongoing, expects, intends, and similar words or phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements are not guarantees of future performance and involve risks and uncertainties that are subject to change based on various important factors, some of which are beyond our control. For additional discussion of these risks, refer to the section entitled Risk Factors and elsewhere in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q filed by us with the U.S. Securities and Exchange Commission (SEC). Among the factors that could cause the forward-looking statements in this press release and/or our financial performance to differ materially from that suggested by the forward-looking statements are (a) the inherent limitations in internal control over financial reporting; (b) our ability to remediate any material weaknesses in internal controls over financial reporting completely and in a timely manner; (c) continually changing federal, state, and local laws and regulations could materially adversely affect our business; (d) adverse economic conditions in the United States and worldwide may negatively impact our results; (e) our business could suffer if our access to funding is reduced; (f) significant risks we face implementing our growth strategy, some of which are outside our control; (g) unexpected costs and delays in connection with exiting our personal lending business; (h) our agreement with FCA US LLC may not result in currently anticipated levels of growth and is subject to certain conditions that could result in termination of the agreement; (i) our business could suffer if we are unsuccessful in developing and maintaining relationships with automobile dealerships; (j) our financial condition, liquidity, and results of operations depend on the credit performance of our loans; (k) loss of our key management or other personnel, or an inability to attract such management and personnel; (l) certain regulations, including but not limited to oversight by the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, the European Central Bank, and the Federal Reserve, whose oversight and regulation may limit certain of our activities, including the timing and amount of dividends and other limitations on our business; and (m) future changes in our relationship with SHUSA and Banco Santander that could adversely affect our operations. If one or more of the factors affecting our forward-looking information and statements proves incorrect, our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements. Therefore, we caution the reader not to place undue reliance on any forward-looking information or statements. The effect of these factors is difficult to predict. Factors other than these also could adversely affect our results, and the reader should not consider these factors to be a complete set of all potential risks or uncertainties as new factors emerge from time to time. Any forward-looking statements only speak as of the date of this document, and we undertake no obligation to update any forward-looking information or statements, whether written or oral, to reflect any change, except as required by law. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.
About Santander Consumer USA Holdings Inc.
Santander Consumer USA Holdings Inc. (NYSE: SC) ("SC") is a full-service consumer finance company focused on vehicle finance, third-party servicing and delivering superior service to more than 2.7 million customers across the full credit spectrum. SC is majority-owned (as of September 30, 2019, approximately 71.6%) by Santander US. SC, which began originating retail installment contracts in 1997, had an average managed asset portfolio of approximately $57 billion (as of September 30, 2019), and is headquartered in Dallas. (www.santanderconsumerusa.com)
About Santander Holdings USA, Inc.
Santander Holdings USA, Inc. ("Santander US") is a wholly-owned subsidiary of Madrid-based Banco Santander, S.A. (NYSE: SAN) ("Santander"), one of the most respected banking groups in the world with more than 144 million customers in the U.K., Europe, Latin America and the U.S. As the intermediate holding company for Santander's U.S. businesses, Santander US includes five financial companies with approximately 17,000 employees and assets of approximately $140 billion. These include Santander Bank, N.A., one of the country's largest retail and commercial banks by deposits; Santander Consumer USA Holdings Inc. (NYSE: SC), an auto finance and consumer lending company; Banco Santander International of Miami; Banco Santander Puerto Rico and Santander Investment Securities Inc. For more information about Santander Bank, visit www.santanderbank.com.
SOURCE Santander Consumer USA Holdings Inc.