CNH Equipment Trust 2022-B Annual Report - How They Did This Year

Hey there! Let's see how CNH Equipment Trust 2022-B did this past year. We'll explain it clearly, without confusing financial terms. Consider this a friendly chat about your investment.

First things first: This isn't your typical company!

First, it's important to know CNH Equipment Trust 2022-B isn't a regular company like Apple. You can't buy its stock. It's a special financial entity: an asset-backed trust.

Here's how it works: CNH Industrial Capital America LLC makes many loans. This company sells equipment like tractors and construction machinery. (It's a subsidiary of CNH Industrial N.V., a global capital goods company.) It lends money to customers for these purchases. Instead of holding these loans, it bundles them. Then it sells them to this Trust. The Trust then issues notes (like bonds) to investors. Payments from the equipment loans back these notes. This process is called securitization. It creates an asset-backed security (ABS).

So, "performance" here means how well borrowers repay their equipment loans. This repayment directly affects how the Trust's notes perform. This report covers the year ending December 31, 2025.

1. What does this company do and how did they perform this year?

CNH Equipment Trust 2022-B doesn't "do business" traditionally. It holds a fixed group of equipment loans. These include retail contracts, loans, and leases. They cover new and used farm and construction equipment. CNH Industrial Capital America LLC originally made these loans. The Trust uses payments from these loans. It pays back investors who bought $835,690,000 in asset-backed notes (bonds). The Trust issued these notes in August 2022.

For 2025, the Trust's key performance shows how smoothly loans are managed and if rules are followed. Monthly or quarterly servicer reports (Form 10-D filings) show loan details like delinquency rates, charge-offs, or early payments. This annual report focuses on the Trust's operations. The good news: the Servicer, New Holland Credit Company, LLC, collects payments. It officially certified full compliance, meaning it followed all rules for managing these loans. The Indenture Trustee, Citibank, N.A., represents noteholders. It also confirmed full compliance. KPMG LLP independently reviewed this finding. This means payment collection and asset handling processes work correctly, building confidence in the Trust's ability to meet its obligations.

2. Financial performance - revenue, profit, growth metrics

CNH Equipment Trust 2022-B isn't a traditional company. It doesn't have "revenue" or "profit" in the usual sense. Its financial health depends on collecting payments from its equipment loans and paying back noteholders. The Trust's income comes mainly from interest and principal payments on these loans. It distributes this money to cover expenses. It then pays noteholders based on a set "cash flow waterfall" plan.

This annual report (a Form 10-K) focuses on the Trust's operations. Its operations focus only on managing these asset-backed notes. It doesn't generate sales or business profits. Investors check servicer reports (Form 10-D filings) for the loan pool's collateral balance, delinquency, loss, and prepayment rates. These numbers are vital. They show the health of the assets backing your notes.

3. Major wins and challenges this year

For this Trust, a "win" means smooth operations and proper loan management, ensuring noteholders get timely payments. This year's big win: the Servicer, New Holland Credit Company, LLC, officially certified compliance. Its President, Douglas MacLeod, confirmed they met all applicable servicing criteria in all material respects for 2025. This means they confirmed following all rules for managing these loans. They reported:

• Their vendors (companies helping with servicing) had no major noncompliance issues.
• Their policies for monitoring vendors had no major flaws.
• Even better, Deloitte & Touche LLP, an independent accounting firm, formally attested. They confirmed the Servicer's compliance claim was 'fairly stated, in all material respects.' This strongly confirms the Servicer is doing its job right. This applies to the whole CNH Equipment Trust Platform (including this Trust) for 2025.

It's not just the Servicer. The Indenture Trustee, Citibank, N.A., protects noteholders' interests. It also did its own check. Citibank's management confirmed its own compliance in all material respects. They followed specific rules ('servicing criteria' under Regulation AB) that apply to their role in managing loans and ensuring payments reach investors. This assessment covered Citibank's services, including acting as trustee and paying agent for the Trust. For more confidence, KPMG LLP, another independent accounting firm, formally examined Citibank's assessment. Their report concluded Citibank's compliance claim was 'fairly stated, in all material respects.' This means an independent expert approved Citibank's role in managing the Trust's money and ensuring payments. This double-check from both Servicer and Trustee is a huge win. Each had independent verification. It means critical processes are diligently followed. This ensures payments reach you, the investor, and are independently verified.

Deloitte reviewed most Servicer compliance. KPMG LLP, Citibank's auditor, confirmed Citibank's payment distribution role separately. This shows a thorough, multi-layered audit approach. This report indicates no specific challenges or major non-compliance. This is typical for a compliance-focused 10-K when an asset-backed trust operates smoothly.

4. Financial health - cash, debt, liquidity

The Trust's main "debt" is $835,690,000 in asset-backed notes. It issued these notes in 2022. These notes often have different classes (like A, B, C, D) with varying maturities and credit ratings. Its "financial health" depends directly on how the equipment loans perform. As loan payments arrive, the Trust uses them. It pays interest and principal to noteholders. It follows a strict "cash flow waterfall" payment order.

Predictable cash flow from the loan pool manages liquidity. This cash flow should cover the Trust's obligations to noteholders. There's no common stock for investors to buy. Your investment is in the notes (bonds). These represent a claim on the equipment loan cash flows.

5. Key risks that could hurt the stock price

This isn't a stock, so there's no "stock price" concern. But for note (bond) investors, the main risk is unpaid equipment loans. This is credit risk: borrowers might not repay their loans. Other key risks for asset-backed notes are:

• Prepayment risk: Borrowers might pay loans early. This changes expected cash flow to noteholders. It could affect your yield.
• Interest rate risk: If notes have floating rates, changing interest rates could affect payments.
• Servicer risk: The servicer (New Holland Credit Company, LLC) might fail. It could improperly collect payments or manage loans.

This report states no "significant obligors" exist. This means no single large borrower's default would greatly harm the loan pool. This spreads credit risk among many smaller borrowers. Also, no major legal problems affecting the Trust or its assets were reported.

The Servicer (New Holland Credit Company, LLC) certified strong compliance. Deloitte & Touche LLP formally attested it was "fairly stated, in all material respects." The Indenture Trustee (Citibank, N.A.) also confirmed compliance. KPMG LLP independently examined and attested its claim was 'fairly stated, in all material respects.' This significantly reduces operational risks. These risks relate to loan management and payment collection. This gives investors more confidence in sound processes. It reduces the chance of servicer issues affecting note payments.

General risks for asset-backed notes include borrower defaults. Economic downturns can affect loan repayments. Servicer issues with payment collection are also a risk. The strong servicing compliance (mentioned earlier) helps reduce some operational risks.

6. Leadership or strategy changes

New Holland Credit Company, LLC (the Servicer) manages the Trust's operations. Douglas MacLeod, Servicer President, signed the report. An asset-backed trust has a fixed strategy. It manages assets to ensure timely noteholder payments. This follows securitization document terms. The Trust is a passive entity. It has no employees or traditional management.

7. Future outlook

For an asset-backed trust, the "future outlook" means continued performance of existing equipment loans. If borrowers keep paying, and the Servicer and Trustee comply, the Trust can meet its noteholder obligations. This lasts until the notes mature. The collateral's performance will determine the Trust's ability to make timely payments.

8. Market trends or regulatory changes affecting them

For a deeper understanding of broader market trends or regulatory changes, consider economic conditions affecting equipment sales. Check agricultural prices, interest rates, or new securitization rules. You'd typically find this in reports from the parent company (CNH Industrial Capital America LLC), CNH Industrial N.V., or industry analyses. Financial institutions and rating agencies also provide such data.

Understanding these aspects helps you assess the stability of your investment in CNH Equipment Trust 2022-B.