Cash America 2011 Annual Report Download - page 89

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58
The following table summarizes the consumer loan loss provision for the years ended December 31, 2011 and
2010 (dollars in thousands):
Year Ended December 31,
2011 2010
Consumer loan loss provision:
Loss provision on Company owned consumer loans $ 225,464 $ 182,500
Loss provision on consumer loans guaranteed by the Company(a) 224 (106)(b)
Combined consumer loan loss provision $ 225,688 $ 182,394
Charge-offs, net of recoveries $ 201,345 $ 170,897
(a)c
Represents loss provision on loans originated by third-party lenders through the CSO programs.
(b)
The loss provision on consumer loans guaranteed by the Company and originated by third-party lenders through the CSO programs
for the year ended December 31, 2010 is a credit balance due to improved collection rates and slightly lower volume of loans
outstanding for the year ended December 31, 2010 compared to 2009.
Due to the nature of the short-term 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 combined consumer loan loss
provision as a percent of combined consumer loans written is lowest in the first quarter and increases throughout the
year, with the final two quarters generally combining for the peak levels of loss provision expense. The loss provision
as a percentage of combined loans written increased to 7.4% in 2011, compared to 6.2% in 2010, due to growth in loans
written in foreign e-commerce markets and the growth of the multi-payment installment loan and line of credit products,
which have a higher percentage of new customers, as discussed in “Consumer loan loss provision” section above.
The following tables show the Company’s loss experience by quarter and for the years ended December 31,
2011 and 2010 (dollars in thousands):
2011
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter Fiscal Year
Consumer loans written:(a)
Company owned $ 429,810 $ 489,332 $ 570,658 $ 613,153 $ 2,102,953
Guaranteed by the Company(b) 208,963 214,220 247,341 257,693 928,217
Combined consumer loans written $ 638,773 $ 703,552 $ 817,999 $ 870,846 $ 3,031,170
Combined consumer loan loss provision as a % of
combined consumer loans written (a) 6.2% 6.4% 7.4% 9.2% 7.4%
Charge-offs (net of recoveries) as a % of combined
consumer loans written (a) 7.0% 6.0% 6.1% 7.4% 6.6%
Combined consumer loan loss provision as a % of
consumer loan fees 32.1% 34.1% 37.2% 44.7% 37.7%
(a) The disclosure regarding the amount of consumer loans written is statistical data that is not included in the Company's financial
statements.
(b) Represents loans originated by third-party lenders through the CSO programs, which are not included in the Company's financial
statements.