Capital One Auto Finance Taps New President, Reports Q3 Performance
McLEAN, Va. — While documents filed with the Securities and
Exchange Commission this week confirmed Capital One Auto Finance will have a
new president as of Nov. 1, the company watched its auto loan originations
soften during the third quarter.
The company plans to appoint Sheldon "Trip" Hall to the
president's role. Hall currently serves as senior vice president. The move
comes because the company is shifting its current auto lending division president
Kevin Borgmann to become chief risk officer of Capital One Financial Corp.
Hall will rise to the new post as Capital One's origination
volume dipped a bit quarter-over-quarter but remained above the year-ago level.
The company reported its third-quarter financial statement this
week and said its auto loan origination total came in at $3.90 billion, down
from the second-quarter figure of $4.30 billion and the first-quarter mark of
$4.27 billion.
However, Capital One's third-quarter performance was above
the figure the company compiled a year earlier, which was $3.40 billion.
Meanwhile, the company's net charge-off rate for auto
division increased 68 basis points quarter-over-quarter from 1.11 percent to
1.79 percent. Officials said the rise was "primarily due to seasonality."
Furthermore, Capital One's 30-day delinquency rate for its
auto portfolio climbed during the third quarter, too. The reading came in at
6.12 percent, up from the second-quarter mark of 5.20 percent. It was down slightly
year-over-year as it was 6.34 percent during the third quarter of 2011.
More Details About Personnel Moves
Capital One's current chief risk officer Peter Schnall will
be leaving that role as of June 1.
The company said Schnall's responsibilities through the
remainder of his tenure as chief risk officer will include working closely with
Borgmann on a smooth and effective transition.
Capital One also said in its SEC filing that Schnall has
agreed to remain with the company in a senior advisory role through April 1,
2014, at his current compensation and benefit levels until his departure.
The company went on to note that Schnall has also agreed to
an expansion and extension of his existing non-competition agreement.
"In addition to the payments he is already entitled to
receive for the first two years after his departure, and so long as Mr. Schnall
complies with the terms of the agreement, the NCA provides for payments
totaling $5.3 million for an additional three years," officials said.
"Assuming Mr. Schnall remains employed by the company until
April 1, 2014, the NCA will remain in effect until April 1, 2019," they added.
Normal
0
false
false
false
EN-US
X-NONE
X-NONE
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:””;
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin-top:0in;
mso-para-margin-right:0in;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0in;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:”Calibri”,”sans-serif”;
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:”Times New Roman”;
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;}