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BMO's Exit From Trucking Finance Eliminates Rare Credit Transparency

The trucking industry loses a critical data window as BMO Transportation Finance prepares to exit the market. Stonepeak is acquiring the lending unit, with a fourth-quarter close expected. The sale marks the end of quarterly disclosures that have provided six to seven years of insight into trucking credit metrics including write-offs, provisions, allowances, and impaired loans. BMO's most recent quarter showed meaningful improvement, with gross impaired loans falling from over $500 million to roughly $440 million. The improvement signals recovery after severe stress — the unit recorded $43 million in write-offs at its worst point roughly a year ago, compared to $1 million in strong quarters. The cyclical swings may have influenced BMO's decision to divest the portfolio, which it acquired from GE Capital in 2015. Stonepeak has not committed to continuing public data releases. FreightWaves is calling on other trucking lenders to provide comparable transparency, with Mitsubishi Credit mentioned as a potential candidate to fill the void.