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So we're replacing Rich with Shawn Allgood. Shawn is currently the Head of Chrysler Capital. So he'll step into Rich's role and take responsibility for not only Chrysler Capital, but our other Auto Finance relationships as well. Shawn joined us in 2017, after spending nearly three decades at Ally Financial. So Shawn is well qualified to step into Rich's role.

So I want to congratulate those three folks on their new roles, thank Rich Morrin for everything he's done for us here at Santander and I'll certainly miss Rich personally. So the good news about all this is these are internal promotions. We feel really good about the strength and depth and maturity of our organization. It's great to have well-qualified successors lined up to take these very important roles.

And as I said, this is a sign of our maturity and we certainly wouldn't have this depth readily at hand a couple of years ago, so happy for the promotions and we feel good about the depth and quality of the organization. So that news comes on the heel of our announcement with respect to Chrysler, Fiat Chrysler that we announced a few weeks ago. And then we also made some announcement on capital distributions that I'll get to.

So you'll recall that back in June 2018, FCA announced their intent to buy US finance company. And so fast-forward to where we are today, it's great to be able to say we've reached a mutually beneficial agreement with FCA through the amended MPLFA. We're excited because it establishes an operating framework going forward for our two companies, that'll allow us to grow together and continue to work as partners. And when you look at our results over the last year with FCA, you can see clear evidence of that strengthening partnership.

So in the second quarter of this year, our penetration rate is 36%. That's up from 32% last year and it's really the highest level of penetration we've achieved since 2014. You can also look at our growing originations with FCA. That's a reflection of that strong relationship as well. You've heard me say on prior calls we are working really hard on improving the dealer experience and operations. And again, that's part of what you see in that improved penetration rate.

The other big news for us is that we announced $1.1 billion share buyback a couple of weeks ago and we're also announcing an increase in our dividend to $0.22 up from $0.20. And again, another demonstration of our continued maturity and progress toward the goal that we've talked about of having a more efficient capital base, which has been one of our long-term objectives.

So if you look at page -- Slide 4, I'll hit some of the quarterly financial highlights. So net income is $368 million, which is up 10% from the same quarter a year ago. Earnings per share during the quarter were $1.05, which is up 13% from a year ago and our ROA is 3.2%. It was another strong quarter on originations. We did $8.4 billion in total volume, which is up 5% from a year ago.

Our core business at $2.6 billion was down 7% from a year ago. But just keep in mind that we had a really, really strong quarter a year ago. Chrysler loans; here again, you can see the strength of the relationship, up 25% from a year ago. And the other thing is that reflects the strong partnership we now have in place with Santander Bank N.A. So in the quarter, you'll see that we originated or Santander Bank originated $1.9 billion of loans through Santander Consumer. And you'll recall that we rolled that program out a year ago, and so a really strong quarter for Santander Bank, and again that helps us support the prime portion of the business with FCA.

Leases were down a little bit, down 4%, but a strong quarter overall for originations. In funding, we continue to execute successfully in the securitization market. We did $3.4 billion of ABS. In July, we executed our second lease ABS transaction of the year. And credit performance, you'll see our credit performance remains stable and continue to reflect a pretty benign credit environment.

So our 30 to 59-day delinquency ratio was down a little bit; 59-plus was up a little bit; net charge-off ratio was up a little bit, at 30 basis points; recoveries were really strong, especially when you look at the auction recovery rates, which Juan Carlos will take you through in detail.

Also, another really positive sign is the decrease in TDR balances, down almost $400 million from the prior quarter, which is a little more than we actually expected, which is a positive, and that's really driven by the fact that we're doing fewer modifications and our net charge-off ratio was slightly higher.

Just a couple of comments about the macro-environment. Obviously, as I've said before, the radar is fully switched on when it comes to tracking what's happening in the broader environment. Job creation and consumer confidence remains strong, which is obviously very, very important to our business. And then when you look at new car sales and used car sales numbers, they're kind of up and down a little bit, but pretty consistent over time. And I'd say a slight positive is that used vehicle prices has not shown some year-over-year improvements kind of across the board, so including sedan. So it's not just SUVs.

I'll stop there. And with that, I'll turn it over to Juan Carlos.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Thanks, Scott, and good morning everyone. We'll start with Slide 5 for some key economic indicators that influence our originations and credit performance. As mentioned earlier, the overall macroeconomic environment remains supportive of our business. Consumer confidence is high and job creation remains robust.

Environment continues to support a resilient consumer-lending environment. And with Q2 now behind us, industry experts are forecasting only a moderate decrease in new vehicle sales for 2019, which is still indicative of a stable market.

If we look at Slide 6, there are a few key factors that influence our low severity and credit performance. Our auction recovery rate, which represents all auto-related recoveries from the auction lanes is 50.8%, up from 46.5% during the prior year quarter.

Our recovery rate, which includes nominal [phonetic] proceeds, bankruptcy and deficiency sales was 60.3% in the quarter, which is stable versus the same quarter last year. Additionally, non-prime industry securitization data points to relatively a stable net loss and delinquency trends compared to last year.

Turning to Slide 7 for origination trends. Overall, we saw a healthy level of originations across the board, more than $8 billion in total volume. Core loan originations decreased 7% in the quarter compared to the prior year quarter. However, for the first half of the year volume is up 3% year-on-year.

Chrysler Capital originations did increase 25% and the SBNA program combined with our FCA partnership drove strong growth in prime loans. This was a particularly strong quarter for that SBNA platform and we still expect volume to be closer to the 1 billion per quarter level for the remainder of the year. Switching to lease originations, volume decreased 4% versus Q2 last year.

Looking ahead, we remain disciplined with respect to the risk-return profile of our non-prime originations. We also expect to continue to support FCA prime loans with our SBNA program, while maintaining a strong presence in lease.

Turning now to Slide 8. Again, we are pleased to reach a mutually beneficial agreement that strengthens our partnership with FCA going forward. The amendment sets us up well for the remainder of the contract and positions us to continue to help FCA succeed. As part of the announcement, we announced that we made a one-time payment of $60 million to FCA and the amendment also terminates the tolling agreement.

Moving to our performance in the quarter, our average quarterly FCA penetration rate in Q2 was 36%, up from 32% last year. We continue to optimize our full-spectrum lending and servicing platform across loans, leases, floor plan and third-party servicing. We're really excited about our new agreement. During the coming quarters, we aim to build on the progress made by remaining focused on optimizing the relationship, continuing to drive improvement in dealer satisfaction scores and collaborating under or updated an agreement. This will bring renewed vigor to our relationship going forward.

If we look at Slide 9, the service for others platform generated $25 million in servicing fee income this quarter. Now in addition to those servicing fees, $12 million of SBNA origination fees are in our fees, commissions and other line item. During the quarter, we added $1.9 billion in originations to the SFO platform via our agreement with Santander Bank, which drove these SFO balance increase as our previous flow programs assets runoff.

Moving to Slide 10 to review our financial performance for the quarter versus the prior year quarter. Net income for the quarter of $368 million, up from $335 million. Interest on finance receivables and loans increased 4% driven by higher average loan balances. Net lease vehicle income increased 31% due to continued growth in lease balances. Interest expense increased 20% due to the increase in benchmark rents compared to Q2 of 2018 and by a lower contribution from our derivatives portfolio.

Provision for credit losses increased to $431 million in the quarter, up $24 million, driven by a combination of higher balances and lower modification levels offset by the lower TDR balances. Total other income was $30 million in the quarter and included $85 million of held-for-sale adjustments related to the personal lending portfolio, which is comprised of $97 million in customer charge-offs offset by a $12 million decrease in market discount.

Continuing to Slide 11, versus the prior year quarter, earlier state delinquencies decreased 20 basis points while late state delinquency increased 20 basis points. Moving now to the bottom portion of the slide on losses. The RIC gross charge-off ratio of 16.1% in the quarter increased 90 basis points from Q2 last year. The RIC net charge-off ratio of 6.4% increased 30 basis points from Q2 last year, and as we referenced last quarter, loan modification levels are lower relative to prior years. And again, less modifications impact delinquencies, charge-offs and lower inflows into TDRs.

Turning to Slide 12 now to review the loss figures in dollars, net charge-offs for RICs increased $56 million versus prior year quarter to $462 million. $45 million of losses were due to a higher gross charge-off rate, another $20 million is attributable to higher average loan balances, which were up more than $2 billion from last year. These were slightly offset by better recoveries in other items.

Turning our attention to provisions and reserves on Slide 13. At the end of Q2 2019, the allowance for credit losses totaled $3.1 billion decreasing $54 million from last quarter, which represents an allowance ratio of 10.8% at the end of this quarter. Going over to the components of our reserve work, the allowance increased $234 million due to new originations in the quarter, $61 million increase was due to unfavorable performance adjustments. And these increases were more than offset by fewer inflows into TDR migration, which drove a benefit of $10 million and $339 million decrease due to TDR and non-TDR payoffs and charge-offs.

Let's now turn to Slide 14 to discuss TDRs in more detail. This quarter TDR balances decreased nearly $400 million versus the prior year quarter continuing their downward trend, due to the lower TDR inflows, given the strength of the consumer and the lower modification levels. As we mentioned last quarter, this slower generation of TDR is to allow reserve balances to trend lower through the rest of the year.

Turning to Slide 15, the expense ratio for the quarter totaled 2%, down from 2.2% the prior year quarter, which is important as expense dollars are relatively flat compared to last year with a strong growth in average balances.

Turning to Slide 16, our liquidity position remains very strong with total committed funding of more than $46 billion. SC continued to demonstrate consistent and deep access to the capital markets. Our treasury and capital markets teams got busy, ensuring one transaction off of each active ABS shelf in the quarter for a combined $3.4 billion.

We also continued to diversify our funding through private financings and lender commitments, which totaled $17.3 billion. Subsequent to quarter-end, we also closed a $1.2 billion lease ABS transaction SRT. And this is the fourth transaction since the inception of this new lease platform in late 2017 which is important for funding diversification.

Finally, turning to Slide 17, our CET1 ratio for the quarter was 15.7%, down from 16.9% versus prior year. As Scott mentioned earlier, we are excited to have the opportunity to return more capital in this cycle with the announcement of our increased dividend and $1.1 billion repurchase program.

Now turning to our guidance for the third quarter. My comments will be relative to Q2 unless otherwise noted and will include the impact of personal lending. We expect net finance and other interest income to be up 0% to 2% in the second quarter, primarily driven by higher loan balances and lower swap rates.

Provision expense is expected to increase $185 million to $235 million, in line with seasonal patterns. We expect total other income to be flat to $10 million worse, driven by normal seasonality of the Bluestem held-for-sale portfolio. And operating expenses are expected to be flat to $10 million better in line with seasonal patterns. Regarding our full year guidance, this quarter we have no changes to the 2019 guidance ranges that we provided on our last earnings call.

And before we begin Q&A, I'd like to turn the call back to -- over to you Scott.

Scott Powell -- Chief Executive Officer

Okay. Thanks, Juan Carlos. I would just come back to four key points. So Santander Consumer has made significant progress over the last few years creating the better dealer experience, fine-tuning our pricing engine and making sure our risk management and operations are running smoothly. Number two, we've remained disciplined on expenses with positive operating leverage. Number three, we spent a lot of time building and deepening our management team and you see that reflected in the management announcements that we've made this morning, and we continue to focus on running Santander Consumer at large US Financial Institution Standards.

And then number four, FCA, we continue to work very hard to support our partner. I think our results reflect progress we've made. We're very happy to announce the amended MPLFA, and we really look forward to continuing to do a better job for FCA over the remaining life of the contract, and we look forward to the opportunity to kind of win the opportunity to have a longer relationship with FCA past the end of the contract.

So with that, I'll stop there and we'll go to questions. Over to you, operator.

Questions and Answers:

Operator

Hello. And we'll now open the call for questions. And please limit yourself to one question and one follow up question. And we'll take our first question from Jack Micenko with SIG.

Jack Micenko -- Susquehanna -- Analyst

Hi. Good morning, and congrats JC on the new role. Scott, looking at the penetration rate, you know obviously a big jump. You're running 36% and the SBNA flow is helping that. The move this quarter, was that the new contract agreement? Did something specific changed there, or is it just really more of the harvesting of the ongoing efforts? I know you had Rich focused on this for a long time prior to this. Just trying to understand the step-up here in the big origination number, and what's incremental versus what's sort of been in process internally?

Scott Powell -- Chief Executive Officer

Yeah. Jack, there wasn't any particular thing that happened. Yes, SBNA had a particularly good quarter driving the prime originations, but no it's really -- it's the byproduct of a whole bunch of different things that we've been working on to kind of on the pricing and execution side that I touched on with respect to dealers.

And then just kind of improving the relationship that we have kind of at the operating level and the senior levels in the Company. And obviously, sales incentives that they put in the market are an important part of that volume, but it also reflects the confidence that they have in us -- the growing confidence they have in us to deliver for them. So it's a reflection of all those things together. And you're right, having SBNA, Santander Bank N.A. in the game with a different funding structure is really helpful with the FCA relationship.

Jack Micenko -- Susquehanna -- Analyst

Okay. Thanks. And then my follow-up, on the balance sheet, I think you historically run somewhat of the liability-sensitive position on the balance sheet and with the fed contemplating going in the direction here. I guess; A, is that still true; and then B, is there a way to sort of come up with the sensitivity around 25 bps per and sort of the lag effect that could be on the funding costs?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Yes, the -- so yes, we're still liability sensitive. I mean, over the years we've neutralized that position somewhat. It's disclosed in our filings, but the disclosure is always references to parallel movements that's how you tend to measure it. I think what will be particularly important for us is, up until now we have -- we're already seeing the benefit, gradual benefit of lower swap rates, right, which help us every time we do a securitization.

We're doing the FCA rate cut right, that's starting to finally push down like one month LIBOR and that benefits us on warehouse lines for example, OK. So we will get some additional help if that materializes. What you'll see for the quarter or NII sensitivity to a 100 basis points parallel move downward is $35 million in a year. But, again, that will be a for a parallel move, right, and that's not exactly what we're seeing.

Jack Micenko -- Susquehanna -- Analyst

Okay. All right. Thanks for taking the questions.

Scott Powell -- Chief Executive Officer

Thanks.

Operator

And we'll take our next question from John Hecht with Jefferies.

Scott Powell -- Chief Executive Officer

Hey, John.

John Hecht -- Jefferies -- Analyst

Thanks very much guys, and JC, congratulations. A little bit of a follow-up from the step-up from the Chrysler partnership. If these trends with volumes persist, what does that do to kind of base rate NIM and loss rates? Is there any effect over time in those?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

No, not necessarily. I would say, the new agreement as we described earlier gives us the ability to solidify our relationship going forward. It will give us ability to do better business together, OK. But it doesn't necessarily represent a drastic change in strategy, so bigger and better.

John Hecht -- Jefferies -- Analyst

Okay. And then second question pertains to the allowance level. Number one is, do you have any comments on CECL; and number two, should we expect the -- for CECL aside should we expect the ALLL to continue to decline at the similar pace as a percentage of loans given what's going on with the TDRs? And thank you very much.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Thanks. So in terms of CECL, we are running the parallels, so exactly in line with the guidance that or the discussions we've had the last several quarters. Those parallel runs are going now. We expect to be able to come back with better guidance of the impact in the Q3 earnings call. So all of that is going according to plans. Your other question was related to the allowance ratio. I think right now the downward trend sort of as you highlight is impacted mostly by the lower TDR balances, right. Because if you look at the non-TDR allowance ratio, it has actually been very steady, OK. So yes, I think it would be the same answer we've provided in the past. The allowance ratio should stabilize -- apples-to-apples should stabilize once the TDR balances stabilize.

Scott Powell -- Chief Executive Officer

Thanks, John.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Thank you, John.

John Hecht -- Jefferies -- Analyst

Thank you, guys.

Scott Powell -- Chief Executive Officer

Operator?

Operator

We will take our next question from Mark DeVries with Barclays.

Mark C. DeVries -- Barclays -- Analyst

Hi. So the $1 billion repurchase authorization is obviously quite large relative to the current flow. Is there anything you can share with us around, how you might look to go about repurchasing those shares, if you're considering anything on an accelerated basis?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Yes. We're very pleased about having announced the -- both increase in dividends as well as the -- up to $1.1 billion repurchase program is -- as you all know is -- being able to distribute more capital is something that we've been pursuing for quite a while, so this is a very positive step. In terms of how we'll go about it as we move forward, we're going to evaluate -- as we have in the past, evaluate market conditions and consider all execution strategies as we move forward, OK.

We'll also consider any other potential alternatives for capital deployment always to make sure that we're generating value, OK. So, I think right now what we're looking at is flexibility in terms of how we execute that repurchase program over the next 12 months really.

Mark C. DeVries -- Barclays -- Analyst

Okay, got it. And then, is there anything you can share with us about just kind of specific substantive changes that were made to the Chrysler agreement and whether you considered extending that?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Yes, the FCA agreement, you have a redacted contract is out there. And you'll see looking at it that there is a update certain performance metrics sharing practices that sort of thing. So that's -- again, the importance about the agreement is that it solidifies our partnership going forward and gives us the ability to do better business, right, and better partnership.

Scott Powell -- Chief Executive Officer

Yes, and Mark the only thing I would add to what Juan Carlos said is, it was important for both sides that we have an operating framework that works given the current relationship. So obviously, the tolling agreement they put in place at the end of the year froze their ability to essentially continue to dispute some elements of the contract.

And so I would just tell you the new contract we're happy with it the amendment -- sorry the amendment of the contract, they're happy with it -- we're happy with it. It frames up the relationship in a way that both sites can operate for the future without concern about creating the default situation. So that's one of the reasons we're very excited about it, because it creates a framework that really works for us and lets FCA do what they need to do as well.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

And I think specifically to your question about an extension, OK, the contract -- the amendment does not extend the contract, but I think as we said earlier, it gives us the ability to have this enhanced relationship and gives us the opportunity to -- to fight for the opportunity to do more business even beyond that, Santander will have to earn [phonetic], yeah.

Mark C. DeVries -- Barclays -- Analyst

Okay, got it. Thank you.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Thanks.

Operator

And we'll take our next question from Steven Kwok with KBW.

Steven Kwok -- KBW -- Analyst

Hi, thanks for taking my questions. Just the first one is around the originations. It seems to be strong year-over-year, but just wondering if you could touch upon the competitive landscape. And then also, can you provide some color around your outlook for used-car prices that's been holding up really well.

Scott Powell -- Chief Executive Officer

Yeah. I mean, the competitive landscape hasn't changed. Its super competitive, continues to be super competitive. Yeah, it's -- I do think it's one of the most competitive lending spaces out there in the US market. So yeah there's no let off in the competitive framework going on there. And the outlook for used car prices, I think, is actually pretty good. Obviously there are people who say it's going to go down, and -- but it's obviously strong in the quarter. The outlook for the consumer and the economy remains good.

One of the things that's interesting is, as I mentioned I think, that strength in used car prices isn't just trucks and SUVs, sedans were strong as well, which to me says it's a bit of an across the board kind of phenomenon driving that. So we're not changing our strategy because we think used car prices are going to continue to rise. But I don't have any -- I don't think we have any reason to believe that decline in used car prices, a significant decline is on the horizon.

Steven Kwok -- KBW -- Analyst

Got it and just...

Scott Powell -- Chief Executive Officer

Does that help?

Steven Kwok -- KBW -- Analyst

And just given your ability to increase the origination year-over-year, are you guys taking share from others and then sell like, who are the ones that you are taking share from?

Scott Powell -- Chief Executive Officer

Our market share is up a little bit year-over-year, but it's -- I don't think we can see where that's coming from and we're up a few percentage points on our market share I think. No, it's just -- it's kind of grinding that out application-by-application on the non-Chrysler side and then working hard on the Chrysler relationship and improving our service to dealers, which is very big.

I mean we haven't really talked about the specifics, but we've invested a lot in delivering better for dealer's, things like putting better staffing in place, which drives down our contract inventories, which means we're funding deals faster. And when I say faster, we're significantly improved from where we were last year. We set up things like regional credit teams and we're increasing our auto-decisioning rate and we're not done.

I mean that's -- those are all -- we made progress across all those issues. But we'll continue to focus on how Santander works inside the dealer because that's critical for continuing to get good volume from dealers, and so it's just a combination of all those things and like -- and also optimizing our credit and pricing engine. No magic, it's just a combination of all those things together.

Steven Kwok -- KBW -- Analyst

Got it. That's helpful. Thank you.

Scott Powell -- Chief Executive Officer

Yeah, you're welcome.

Operator

And we'll take our next question from Moshe Orenbuch with Credit Suisse.

Scott Powell -- Chief Executive Officer

Hey, Moshe.

Moshe Orenbuch -- Credit Suisse -- Analyst

Great, thanks. Hey, how are you? And congratulations JC on this jump as well. And maybe talk a little bit about the better integration with that -- with your parent with respect to the funding transactions that you've done this quarter? And whether that has an impact on how you think about where your volumes going to be in the next few quarters?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

The funding, you mean the SBNA platform?

Moshe Orenbuch -- Credit Suisse -- Analyst

Yeah, sorry.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Yeah. Yeah, so it's almost like the previous one it's not new. If I remember, we fully launched -- last year we talked about how we were working on it and we worked on it for a number of months to make sure that this platform wasn't like the previous flow agreements where we would originate warehouse and then pass on the -- or sell the loans to our partners.

In this case with FCA we have a platform that not only meets their buy box, their credit box, but also allows us to originate directly onto SBNA's balance sheet, OK. And in return we get origination fees and servicing fees. So this was fully launched exactly a year ago, OK. And we have seen the gradual improvement there with really a very strong quarter this year, as was discussed earlier. Does that change our strategy, I think is your question. That was your question, right, Moshe, because you were fading out a little bit.

Moshe Orenbuch -- Credit Suisse -- Analyst

Well I guess what I saw is that they -- Santander sold some credit-linked notes that maybe makes their appetite a little bit larger for the product.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Okay. No, no, no, totally -- I got you, I got you, OK. No, totally unrelated. Those notes that you're -- credit-linked notes that you're referring to, they are part of the old flow program that we had with the group with head office basically. Remember we use that as a bridge until SBNA came on board. We'll originate and sell those loans to head office. Recently, the transaction that you are talking about, the Group decided to securitize them and basically distribute some of the tranches. So that's entirely unrelated to an ongoing -- to our ongoing platform with SBNA and not recurring from the SC standpoint.

Moshe Orenbuch -- Credit Suisse -- Analyst

Got it.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Thanks for the clarification.

Moshe Orenbuch -- Credit Suisse -- Analyst

Just separately. Thanks. Separately, any kind of update on the written agreement where it gets past the two-year point since that was -- since you've been working on it.

Scott Powell -- Chief Executive Officer

Are we past the two-year point? It was from 2017. I guess we're in the second year maybe.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

It was in the spring.

Scott Powell -- Chief Executive Officer

Was in the spring? Yeah, so, yeah, I mean it sounds like you read it. I mean it's a pretty wide ranging for everybody's benefit 2017 written agreement with Federal Reserve is on compliance issues at the holding company level and then into Santander Consumer here. And then I would tell you that like the other written agreements that we closed out and you recall that we closed out one from 2014 on paying of dividends and then we closed out a very comprehensive one from 2015 on overall risk management framework.

And so just like those two, we're heads down. We've committed significant resources and management effort to address those issues raised by the Federal Reserve, which we don't agree, with by the way. It's all, when I say, operating at large US Financial Institution Standards, that's exactly what I'm talking about.

And so I can't really tell you when it will be closed out, otherwise again big trouble Moshe. But -- just, we're working super hard on it and we have good plans and we know our plans are good. It's just a matter of following through and executing those plans and then they'll get closed out.

Moshe Orenbuch -- Credit Suisse -- Analyst

Great, well certainly I don't want you to get in trouble. Thanks Scott.

Scott Powell -- Chief Executive Officer

Sometimes it's fun to get in trouble, but not with the Federal Reserve.

Operator

And we'll take our next question from David Scharf with JMP Securities.

David Scharf -- JMP Securities -- Analyst

Good morning, thanks for taking my questions. First, I wanted to maybe just clarify or make sure I heard correctly. Regarding the SBNA origination volume, did you suggest that in the second half, we should be thinking about a level closer to $1 billion down from the close to $2 billion in Q2?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Yes I mean -- we've talked about it in the past that for this year a more normal cadence would be about $1 billion a quarter, OK. So this quarter was particularly strong, OK. Some of -- because of some of the drivers we talked about earlier, right. So we're not expecting the platform to keep originating close to $2 billion every quarter. It should be somewhere between that and $1 billion or so.

David Scharf -- JMP Securities -- Analyst

Got it. And JC, when I look at the -- both the FICO and the new versus used mix on Slide 19, I'm assuming that the material shift to greater than 640 FICO and the big increase in the new vehicle mix was driven primarily by the SBNA volumes. If that were back at the $1 billion level in the quarter, would these relative mixes look pretty consistent with the last couple of quarters?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Yes. It's definitely -- so the answer to the first question is, yes. The mix in the FICO's are -- shifts are largely driven by the increased originations of the SBNA platform. So if we were to have a more normal quarter still strong, but somewhat off the level which we have seen, you would see these percentages shift downward as well.

David Scharf -- JMP Securities -- Analyst

Yeah, OK. Thank you.

Operator

And we'll take our next question from Rick Shane with J.P. Morgan.

Richard Shane -- J.P. Morgan -- Analyst

Hey guys, thanks for taking my questions through this morning. And JC, thank you for all your hard work over the last several years, really appreciate the conversations. Scott, I think this is really a question for you. When we look at things, one of the factors that's contributed to the strength across the sector is strong used car prices and I think the thesis has been that off-lease was going to create supply/demand pressure. As we look forward, can you talk about what you see as the sort of supply/demand for used cars in the context of off-lease tariffs and also the ongoing UAW negotiations?

Scott Powell -- Chief Executive Officer

Yes. Maybe, I'll take a shot. Yes I mean certainly -- yes, I don't think it was just you guys. I don't think I'll get myself in trouble on this one. I think it's the relative value between used cars and new cars. And yes, there's been comments made about increasing volumes of off-lease cars and what impact that might have.

I mean again, I think, I'm not smart enough so I don't get into the details in a way because I just think that the overall kind of what's happened in the economy, the strength of the consumer, the demand for cars, the relative attractiveness of used car prices is still there.

And again I -- when we look at what happened in the second quarter, I think it reflects that because it's not just people who like to have SUVs buying SUVs and driving up SUV used car prices. So I think there is an underlying macroeconomic effect here that has a big impact on it and the trade-off versus new car prices is real. So I think that will continue. That's my best view of it. And yes, I mean and the lot of the conversation about increasing volumes of off-lease cars hasn't really had that big of an impact. So...

Juan Carlos Alvarez de Soto -- Chief Financial Officer

We've had those sort of tsunamis, right, almost every year in the spring and at the end of the month have dealt with it very well.

Scott Powell -- Chief Executive Officer

Yes it's a very efficient system. That probably wasn't very helpful.

Richard Shane -- J.P. Morgan -- Analyst

No it is. I mean look, it's obviously one of these things where eventually everybody will be right about declines in used car prices, timing is a little bit trickier. You alluded to something I find interesting which is the commentary on SUVs and that ties into something we've considered as well. Do you think some of this is really been a function of US consumers becoming pretty complacent about low gas prices and their increased penetration of SUVs as a result?

Scott Powell -- Chief Executive Officer

Yes. I mean I think that has an effect, sure. Yes I think -- again I can't -- I wouldn't even try to say how big of an effect it has, but sure it does. But again, there's so much going on in the market that has an -- just good old fashioned consumer preference it has a big influence. And so -- and like I've said in this call many times, I think the forecast, to your point, are not usually accurate and my forecasts are not usually accurate. So it's somewhere down in the middle.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

I think probably the thing to highlight more recently the SUV trend was the driver for quite a while, right? And we benefited from having the mix of very good SUVs and trucks in our portfolio. But more recently sedans are also doing very well. So it's not just the complacency on gas prices, right? It's probably wider than that -- broader than that.

Scott Powell -- Chief Executive Officer

Yes.

Richard Shane -- J.P. Morgan -- Analyst

Okay. Thank you for that clarification. Appreciate it guys.

Scott Powell -- Chief Executive Officer

I hope that helps through. You bet. Thanks.

Operator

And we'll take our next question from Chris Donat with Sandler O'Neill.

Scott Powell -- Chief Executive Officer

Hey Chris.

Christopher Donat -- Sandler O'Neill -- Analyst

Hey, good morning, thanks for taking my question. I had one about the FCA agreement because you mentioned the $60 million payout that you would make to FCA. I'm just curious, it doesn't seem like I saw it in the second quarter and I didn't hear JC mention it for the third quarter. So how does that show up? Is it one-time or is it an amortized or does it show up in a later date?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

It's amortized over the remaining life of the contract.

Christopher Donat -- Sandler O'Neill -- Analyst

Okay. So, there will be some in the third quarter then?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

There's already some in the second quarter and you will see the same proportion over the remaining life of the contract.

Christopher Donat -- Sandler O'Neill -- Analyst

Got it. Okay, and then, just one more question on TDRs. I thought I heard you say that the reduction in TDR balances was partly a function of a decision on your part to do fewer modifications. Was that sort of strategy change? Is that driven by the economy or just take on fewer TDRs? Just trying to understand why the balances are coming down or less is getting put on to replace what comes off?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Yes, remember this is something we've discussed in the last couple of earnings calls and we highlighted at the time that we -- starting in the first quarter we were seeing less modifications and generating less inflows into TDRs. And that's a result of our continues -- continued process to evaluate servicing practices, OK.

And that trend you can see -- I'll just point you to some of the information that we put on our Qs where you have the trend of what has been never deferred or deferred once or twice. If you plot that out, you'll see that the trend for less deferrals has been pretty consistent since starting really after the big spike that we saw coinciding with the hurricane season, right, in late 2017. And we're just seeing more of it now. I don't know Scott if you'd like to...

Scott Powell -- Chief Executive Officer

No, I think you said it right which is the governing principle here is consumers have to demonstrate ability and willingness to pay before we can do either short-term or long-term modifications and determining that is subtle and complex process and so we're always looking to optimize that -- our criteria for doing that to make sure we're applying those very important tools when it's appropriate.

And as Juan Carlos said, when there's a hurricane or flooding, we do a hardship modifications occasionally then. And so yes when you look at the combination of less hardship modifications and then a consistent refinement to improve what we're doing every day to help people, is what's really driving it.

Christopher Donat -- Sandler O'Neill -- Analyst

Got it. Thanks very much guys.

Scott Powell -- Chief Executive Officer

And the only other thing I was going to add is and I think there's less demand forward from consumers when the economy is good too. So, a combination of all those factors takes it down.

Christopher Donat -- Sandler O'Neill -- Analyst

Okay.

Operator

And we'll go to the next question from Vincent Caintic with Stephens.

Vincent Caintic -- Stephens -- Analyst

Hey, thanks. Good morning, guys.

Scott Powell -- Chief Executive Officer

Good morning.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Good morning.

Vincent Caintic -- Stephens -- Analyst

Thanks for the color on the sensitivity to -- from rates to your funding costs. I was just wondering if you could also talk about the asset side. I just look this quarter [Indecipherable] yield didn't drop that much even though benchmark rates dropped significantly. I did see dealer receivable yields drop a bit. I was just wondering if you could talk maybe a bit about the sensitivity. It seems like you do have pricing power. If you can talk about what -- why that is and if that maybe changes your appetite on different parts of the risks spectrum? Thanks.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Yes. So, one thing to note though, you mentioned that dealer -- the yield on receivables from dealers, right? And I think you're referring to dropping from 3.4 a year ago to 1.6. That yield right there from dealers is really just on a very, very small balance that you have down in the press release. At the bottom of Page 8, you'll see there is something like $30 million balance is -- that's a legacy loan really.

So that's really get baked into equation. But more to your point, your question about pricing power. You're right, yields on the acquired RICs dropped 10 basis points only, right? Despite the move down in swaps. Really at this point, we do retain -- we talked about it already, it's still competitive out there, right. So this has -- it's not like we've lost pricing power but it's not as if we've gained more of it either. It really has to do with the mix that we originate each particular quarter.

If we happen to retain a little bit more of the near-prime or prime paper that doesn't quite go or fit into the SBNA buy box, the yields for the originations that month will drop a little bit. All-in-all, I would say our ability to pass higher rates to the consumers while rates were going up was evident. We were able to do it.

Now, as swap rates come down, we'll also pass that along to the consumer because we have to compete, OK. So, really our key driver in terms of pressuring NIM, right, which we've seen, is how quickly we can benefit from the lower trend in rates that we've seen this year, right?

So, to the earlier point, we're starting to see that benefit as we securitize, but to really turn the cost of debt around we'll also need a cut in the short-end that will help LIBOR go down and then as we reprice the entire stock of it that will help our income from it.

Vincent Caintic -- Stephens -- Analyst

Okay, that's helpful. Does it -- and not just necessarily for pricing but do you have any view on the change in sort of the risk you want to play with. I notice that there's been more drive securitizations versus SDART. Any thought to the change there? Are you are kind of just following the market with that? Thank you.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

No, no, no significant change in the strategy at all. It's is more of the grand, [Indecipherable]this is just single strait area. As we go along we revise our pricing. We look at the market where our pricing models, we look at the market where there are pockets of opportunities. And no drastic change in originations here under way.

Vincent Caintic -- Stephens -- Analyst

Okay, got it. Thanks very much.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

But, the one thing to keep in mind, when you compare drive and SDART remember that we used to fund drive through private deals, right? And the drive is a more recent -- we've brought it back more recently. So, that also might impact the number of one platform versus the other. But there's really no change in underlying strategy.

Vincent Caintic -- Stephens -- Analyst

Great. Thank you.

Operator

And we'll take our next question from Arren Cyganovich with Citi.

Arren Cyganovich -- Citigroup -- Analyst

Thanks. Just kind of getting back to the TDR balances, I think last quarter you talked about that normalizing maybe at the end of this year, kind of continues to get better as the new formation is coming in, like as you talked about before, a bit slower than it had in the past. Do you still expect that to be kind of toward the end of the year, or when do we get more kind of a leveling off of that TDR balance?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Yes. If you remember even a little bit further back, we used to expect it to level off earlier in the year and we said sometime in the early part of the year. As we sold a lower generation of TDRs -- lower TDR inflows, our updated expectation is exactly what you said we now expected to continue through the end of the year.

Arren Cyganovich -- Citigroup -- Analyst

Okay. Thank you.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Thank you.

Operator

And we'll take our next question from Betsy Graseck with Morgan Stanley.

Betsy Graseck -- Morgan Stanley -- Analyst

Hey, good morning.

Scott Powell -- Chief Executive Officer

Good morning.

Betsy Graseck -- Morgan Stanley -- Analyst

A couple of questions. One, just a clarification on the NII outlook. I know you mentioned 100 bps, $35 million. Is that a spot move and is that an immediate $35 million or that's a spot move with the $35 million over the course of 12 months, is that right?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Yeah. It's a parallel move of a 100 basis points over the course of the year.

Betsy Graseck -- Morgan Stanley -- Analyst

Yeah. So, you don't -- like it's not based on the forwards. And then, I guess, the other question is, it doesn't matter if it's a 50 bps cut all at once versus 25 bps. Does that change the numbers materially at all, the $35 million?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Yeah. No, it does. The most -- be more upfront definitely would help, right? And it being whatever we do on the very short end, right? If one month LIBOR drops instead of 25 bps, it goes to 50 bps, we get the benefit -- immediate benefit on the average balance for the period.

Betsy Graseck -- Morgan Stanley -- Analyst

Yeah. Yeah, OK. And then the flip side is, how do you expect lower rates are going to impact the consumer in your business? Do you think they are going to -- going out for bigger exposures? Do you think your loan growth will pick up? Do you think it's less probability of default, or something else?

Scott Powell -- Chief Executive Officer

Yes. I think it's all of those things. Certainly, it reduces -- the average American certainly reduces their monthly payments that they have to make on the same kind of debt. So, yeah, I think it will be good for the consumer. I think it will be good for the industry too.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Just general for...

Betsy Graseck -- Morgan Stanley -- Analyst

Yeah. And I guess the question is, like what have you been seeing in your probability default over the past couple of quarters here? Has it changed that much, given the length of time that we've been sitting here like 240 on the front-end or not really?

Scott Powell -- Chief Executive Officer

No.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

No, not really.

Scott Powell -- Chief Executive Officer

No, and we do look at it. We try to isolate similar segments and settles and see if there's changes -- and no, we don't really see any plus or minus to the performance, given what's happened so far.

Betsy Graseck -- Morgan Stanley -- Analyst

Okay. And then just lastly, separate topic, but the parent is obviously increasing their share of ownership and we know that it's a go over 80.1% that's a benefit for them from an accounting perspective. But I'm wondering does it impact at all how you operate or is there anything different that happens if -- when they go over an 80% ownership stake?

Juan Carlos Alvarez de Soto -- Chief Financial Officer

So, I think the short answer is, no. We have -- I mean, first of all, the parent has increased their ownership and this closed just as a function of us having executed repurchases since last year, right?

Betsy Graseck -- Morgan Stanley -- Analyst

Right.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Yeah, so the 80% which we in Santander Holdings have disclosed that highlight that there are additional benefits to if and when the 80% ownership threshold were to be reached. But our planning -- the analysis that supports or repurchase program is based on our benefits or the benefits for SC and its shareholders. So, there -- doesn't necessarily mean that there will be anything different going up to 80% or beyond 80% for us here in SC.

Betsy Graseck -- Morgan Stanley -- Analyst

Okay. Yeah. I just wanted to make sure I understood like, operationally, was there anything that changed with that threshold getting crossed if when that threshold got crossed, and your answer is no.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Not operationally.

Betsy Graseck -- Morgan Stanley -- Analyst

All right. Thank you.

Scott Powell -- Chief Executive Officer

Not. Yeah. You are welcome.

Operator

And this will conclude our Q&A session. I will now turn the call over to Scott Powell for final comments.

Scott Powell -- Chief Executive Officer

Thanks everyone for joining the call. Thanks for your questions and your interest in our Company. As always, our investor team will be available for any follow-up questions you have and they look forward to speaking with you. And we will see you next quarter. Thanks very much.

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Thank you.

Duration: 62 minutes

Call participants:

Evan Black -- Vice President, Investor Relations

Scott Powell -- Chief Executive Officer

Juan Carlos Alvarez de Soto -- Chief Financial Officer

Jack Micenko -- Susquehanna -- Analyst

John Hecht -- Jefferies -- Analyst

Mark C. DeVries -- Barclays -- Analyst

Steven Kwok -- KBW -- Analyst

Moshe Orenbuch -- Credit Suisse -- Analyst

David Scharf -- JMP Securities -- Analyst

Richard Shane -- J.P. Morgan -- Analyst

Christopher Donat -- Sandler O'Neill -- Analyst

Vincent Caintic -- Stephens -- Analyst

Arren Cyganovich -- Citigroup -- Analyst

Betsy Graseck -- Morgan Stanley -- Analyst

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