NEW YORK and SAN FRANCISCO — At the same time Chase Auto
Finance reported its first-quarter performance, Wells Fargo highlighted that
auto originations hit a new record during the past quarter.

Wells Fargo officials said their auto originations totaled
$6.8 billion in Q1, up 27 percent from prior quarter and up 10 percent from
prior year.

The first-quarter origination level left Wells Fargo's total
auto loan balance at $47.3 billion, which is 3 percent higher than the previous
quarter and 7 percent above the year-ago reading.

And those loans are performing better, too.

Wells Fargo indicated that within its indirect consumer
portfolio, the first-quarter net charge-off rate dipped to 0.65 percent, down
from 0.94 percent. Meanwhile, 30-day delinquency rates decreased to 1.37
percent in the first quarter from 2.15 percent in the previous quarter,
reflecting seasonality, according the company

Within its direct consumer portfolio, both net charge-offs
and 30-day delinquencies improved as well. Wells Fargo said net charge-offs
dipped from 1.41 percent to 0.85 percent sequentially while 30-day delinquency
rates ticked down from 1.43 percent to 0.83 percent.

As Wells Fargo's consumer auto business is flourishing, the
company highlighted that its commercial auto division reached a milestone, too.

Officials reported that Q1 commercial auto loans totaled $7.6
billion up 2 percent sequentially and 21 percent year-over-year.

"Dealer floor plan utilization rates hit highest levels
since the merger with continued strong credit performance," Wells Fargo said,
referencing its combination with Wachovia.

Chase Auto Finance Q1 Highlights

Over at Chase, officials said their auto originations jumped
by double digits both sequentially and year-over-year.

Chase's Q1 originations totaled $6.5 billion, up 12 percent
from the prior year and 18 percent from the prior quarter.

The production pushed the company's first-quarter auto loan
portfolio to $50.0 billion, up 5 percent from the prior year and 2 percent from
the prior quarter.

How are those loans performing? Chase said its net
charge-off rate and 30-day delinquency rate both improved in the first quarter.

The net charge-off rate dipped to 0.32 percent, down from 0.36
percent in the previous quarter but up slightly from a year ago when it was
0.28 percent.

The 30-day delinquency rate posted a similar trend as it
finished the first quarter at 0.92 percent. That level was lower than the
previous quarter (1.25 percent) but higher than a year ago (0.79 percent).

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