Cash America 2010 Annual Report Download - page 75

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46
2009
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Consumer loan balances and fees receivable:
Gross - Company owned $ 93,158 $ 111,973 $ 118,160 $ 136,139
Gross - Guaranteed by the Company 28,342 33,686 42,768 49,862
Combined consumer loans and fees receivable, gross(a) $ 121,500 $ 145,659 $ 160,928 $ 186,001
Allowance and accrual for losses on consumer loans 18,800 24,222 27,504 30,294
Combined consumer loans and fees receivable, net(a) $ 102,700 $ 121,437 $ 133,424 $ 155,707
Allowance and accrual for losses and accrued third-
party lender losses as a % of combined consumer loans
and fees receivable, net(a) 15.5% 16.6% 17.1% 16.3%
(a)
N
on-GAAP measure.        
Consumer loans written. The amount of combined consumer loans written was $2.9 billion in 2010 and
increased $577.3 million, or 24.8%, from $2.3 billion in 2009, mainly due to increases in demand for consumer loans
in the e-commerce segment, which were largely due to the Company’s successful expansion into international markets.
Combined consumer loans written includes $1.9 billion and $1.5 billion at December 31, 2010 and 2009 of Company-
owned consumer loans written, and $1.0 billion and $0.8 billion at December 31, 2010 and 2009, respectively, of
consumer loans written that were guaranteed by the Company, respectively.
The average amount per consumer loan decreased to $429 from $432 during 2010 compared to 2009,
primarily due to a greater mix of the Company’s participation interest in consumer loans purchased through the MLOC
services channel, which typically have a lower average amount per loan. Management expects the average amount per
consumer loan to increase in the coming year or until the MLOC services channel provides a level of activity
comparable to the level the Company experienced during 2010.
The following table summarizes the consumer loans written for the years ended December 31, 2010 and 2009
(dollars in thousands, except average amount per loan):
Year Ended December 31,
2010 2009
Company
Owned(a)
Guaranteed
by the
Company(a) Combined(b)
Company
Owned(a)
Guaranteed
by the
Company(a) Combined(b)
Amount of consumer loans written:
Retail Services $ 703,161 $ 199,155 $ 902,316 $ 706,066 $ 220,650 $ 926,716
Online Lending 911,002 806,749 1,717,751 696,821 581,740 1,278,561
MLOC 289,009 - 289,009 126,457 - 126,457
Total consumer loans written $ 1,903,172 $1,005,904 $ 2,909,076 $ 1,529,344 $ 802,390 $ 2,331,734
Average amount per consumer loan:
Retail Services $ 438 $ 574 $ 462 $ 431 $ 560 $ 456
Online Lending 418 679 510 403 704 500
MLOC 197 - 197 157 - 157
Combined $ 363 $ 655 $ 429 $ 366 $ 658 $ 432
(a) GAAP measure.
(b) Non-GAAP measure.
The loss provision as a percentage of combined loans written increased to 6.3% in 2010 compared to 5.6% in