Cash America 2013 Annual Report Download - page 97

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The following table shows, for the e-commerce segment, the amount of consumer loans written and renewed to
new customers and to existing customers for the years ended December 31, 2013 and 2012 (dollars in thousands):
December 31,
2013 2012
Company
Owned(a)
Guaranteed
by the
Company(a)(b) Combined(a)
Company
Owned(a)
Guaranteed by
the
Company(a)(b) Combined(a)
Amount of consumer loans written and
renewed to:
N
ew customers $ 262,663 $ 52,097 $ 314,760 $ 236,030 $ 64,613 $ 300,643
% of total 10.1% 2.0% 12.1% 9.4% 2.6% 12.0%
Existing customers 1,610,265 671,303 2,281,568 1,445,125 755,512 2,200,637
% of total 62.0% 25.9% 87.9% 57.8% 30.2% 88.0%
Total amount of consumer loans written
and renewed $ 1,872,928 $ 723,400 $ 2,596,328 $ 1,681,155 $ 820,125 $ 2,501,280
Number of consumer loans written and
renewed to (in ones):
              
N
ew customers 502,472 92,854 595,326 504,076   115,292 619,368
% of total 10.2% 1.9% 12.1% 10.9% 2.5% 13.4%
Existing customers 3,386,001 924,472 4,310,473 2,993,142   1,001,395 3,994,537
% of total 69.1% 18.8% 87.9% 64.9% 21.7% 86.6%
Total number of consumer loans
written and renewed 3,888,473 1,017,326 4,905,799 3,497,218 1,116,687 4,613,905
(
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 is included in “Accounts payable and accrued expenses” in the consolidated balance sheets.
The allowance and liability for estimated losses as a percentage of combined consumer loans and fees receivable
decreased to 18.0% in 2013 from 20.3% in 2012, primarily due to improved performance of the consumer loan
portfolios, partially related to the maturing of the Company’s product offerings, such as installment loans and line of
credit accounts, to include a higher percentage of customers with established payment histories in the e-commerce
segment. New customers tend to have a higher risk of default than customers with a history of successfully repaying
loans.
The consumer loan loss provision in 2013 was $351.3 million, which was composed of $351.7 million related to
Company-owned consumer loans, offset by $0.4 million related to loans guaranteed by the Company through the CSO
programs. The consumer loan loss provision in 2012 was $316.3 million, which was composed of $315.9 million related
to Company-owned consumer loans, offset by $0.4 million related to loans guaranteed by the Company through the
CSO programs. Consolidated charge-offs, net of recoveries, were $349.5 million and $293.2 million in 2013 and 2012,
respectively.