Cash America 2012 Annual Report Download - page 95
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70
The following table shows, for the e-commerce segment, the number of consumer loans written and renewed to
new customers and to existing customers for the years ended December 31, 2012 and 2011:
For the year ended December 31,
2012 2011
Company
Owned(a)
Guaranteed
by the
Company(a)(b) Combined(a)
Company
Owned(a)
Guaranteed
by the
Company(a)(b) Combined(a)
Number of consumer loans written and
renewed to (in ones):
N
ew customers 504,076 115,292 619,368 426,883 104,861 531,744
% of total 10.9% 2.5% 13.4% 10.7% 2.6% 13.3%
Existing customers 2,993,142 1,001,395 3,994,537 2,523,771 938,857 3,462,628
% of total 64.9% 21.7% 86.6% 63.2% 23.5% 86.7%
Total number of consumer loans written
and renewed 3,497,218 1,116,687 4,613,905 2,950,654 1,043,718 3,994,372
(
a
)
The disclosure regarding the amount and number of consumer loans written and renewed is statistical data that is not included
in the Company’s financial statements.
(b)
Loans guaranteed by the Company represent loans originated by third-party lenders through the CSO programs.
Consumer Loan Loss Experience
The Company monitors the performance of its consumer loan portfolio and maintains either an allowance or
liability for estimated losses on consumer loans (including fees and interest) at a level estimated to be adequate to absorb
credit losses inherent in the portfolio. The allowance for losses on the Company’s owned consumer loans reduces the
outstanding loan balance in the consolidated balance sheets. The liability for estimated losses related to loans guaranteed
under the CSO programs, which approximates the fair value of the liability, is included in “Accounts payable and
accrued expenses” in the consolidated balance sheets.
The combined allowance and liability for estimated losses as a percentage of combined consumer loans and fees
receivable increased to 20.3% in 2012 from 19.2% in 2011, primarily due to the change in the mix of loans in the e-
commerce segment, as discussed in the “Consumer loan loss provision” section above.
The consumer loan loss provision in 2012 and 2011 was $316.3 million and $225.7 million, respectively, and
included $0.4 million and $0.2 million related to loans guaranteed by the Company through the CSO programs.
Consolidated charge-offs, net recoveries, were $293.2 million and $201.3 million in 2012 and 2011, respectively.