Cash America 2010 Annual Report Download - page 84

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55
The following table summarizes the consumer loan loss provision for years ended December 31, 2009 and
2008 (dollars in thousands):
Year Ended December 31,
2009 2008
Consumer loan loss provision:
Loss provision on Company owned consumer loans $ 130,007 $ 140,416
Loss provision on consumer loans guaranteed by the Company 809 307
Combined consumer loan loss provision $ 130,816 $ 140,723
Charge-offs, net of recoveries $ 124,152 $ 144,597
Combined consumer loan loss provision as a % of combined
consumer loans written(a) 5.6% 6.8%
Charge-offs (net of recoveries) as a % of combined consumer
loans written(a) 5.3% 7.0%
(a)
N
on-GAAP measure.
Due to the short-term nature of the consumer loan product and the high velocity of loans written, seasonal
trends are evidenced in quarter-to-quarter performance. In the typical business cycle, the loss provision as a
percentage of combined consumer loans written is lowest in the first quarter and increases throughout the year, with
the highest ratios occurring during the final two quarters of the year. During 2009, the loss provision as a percentage
of combined consumer loans written decreased from the third quarter to the fourth quarter, due to an improvement in
charge-offs as a percentage of consumer loans written. The loss provision as a percentage of combined loans written
decreased to 5.6% in 2009 compared to 6.8% in 2008.
The following table shows the Company’s loss experience by quarter for 2009 and 2008:
2009
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter Fiscal Year
Consumer loans written:
Company owned $ 328,910 $ 364,246 $ 389,331 $ 446,857 $ 1,529,344
Guaranteed by the Company 157,043 167,057 221,999 256,291 802,390
Combined consumer loans written(a)$ 485,953 $ 531,303 $ 611,330 $ 703,148 $ 2,331,734
Combined consumer loan loss provision as a % of
combined consumer loans written (a) 5.1% 5.5% 6.2% 5.6% 5.6%
Charge-offs (net of recoveries) as a % of combined
consumer loans written (a) 6.1% 4.5% 5.6% 5.2% 5.3%
Combined consumer loan loss provision as a % of
consumer loan fees (a) 30.8% 34.5% 38.4% 36.0% 35.2%
(a)
N
on-GAAP measure.