Cash America 2010 Annual Report Download - page 82

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53
Company guarantees. The Company also provides allowances and accruals for losses on consumer loans on a
combined basis, which are GAAP measures.
Consumer loan balances. The outstanding combined portfolio balance of consumer loans, net of allowances
and accruals for losses, increased $39.0 million, or 33.5%, to $155.7 million at December 31, 2009 from $116.7
million at December 31, 2008, primarily due to increased demand for consumer loan products in both of the
Company’s segments. The combined loan balance includes $136.1 million and $105.3 million at December 31, 2009
and 2008, respectively, of Company-owned consumer loan balances, before the allowance for losses of $27.3 million
and $21.5 million, which has been provided in the consolidated financial statements for December 31, 2009 and 2008,
respectively. The combined loan balance also includes $49.9 million and $34.9 million at December 31, 2009 and
2008, respectively, of consumer loan balances that are guaranteed by the Company, before the accruals for losses of
$2.9 million and $2.1 million, which has been provided in the consolidated financial statements for December 31, 2009
and 2008, respectively.
The following table summarizes consumer loan balances outstanding as of December 31, 2009 and 2008
(dollars in thousands):
As of December 31,
2009 2008
Company
Owned(a)
Guaranteed
by the
Company(a) Combined(b)
Company
Owned(a)
Guaranteed
by the
Company(a) Combined(b)
Ending consumer loan balances:
Retail Services $ 51,986 $ 11,688 $ 63,674 $ 46,065 $ 11,927 $ 57,992
Online Lending 72,600 38,174 110,774 55,729 23,018 78,747
MLOC 11,553 - 11,553 3,551 - 3,551
Total ending loan balance, gross $ 136,139 $ 49,862 $ 186,001 $ 105,345 $ 34,945 $ 140,290
Less: Allowance and accrual for
losses(a) (27,350) (2,944) (30,294) (21,495) (2,135) (23,630)
Total ending loan balance, net $ 108,789 $ 46,918 $ 155,707 $ 83,850 $ 32,810 $ 116,660
(a) GAAP measure.
(b) Except for allowance and accrual for losses, amounts represent non-GAAP measures.
Loss experience. The combined allowance and accrual for losses as a percentage of combined consumer loans
and fees receivable decreased in 2009 to 16.3%, from 16.8% in 2008.
The following table shows consumer loan information by quarter for 2009 and 2008:
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.        