Cash America 2014 Annual Report Download - page 117

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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
102
Changes in the allowance for losses for the Company-owned loans and the liability for estimated losses on
the Company’s guarantees of third-party lender-owned loans through the CSO programs for the years ended
December 31, 2014, 2013 and 2012 were as follows (dollars in thousands):
Year Ended December 31, 2014
Short-term
Loans
Installment
Loans
Total
Allowance for losses for Company
-
owned consumer loans:
Balance at beginning of period $3,960 $951 $
4,911
Consumer loan loss provision
23,139
7,840 30,979
Charge-offs
(28,956
)(9,229)
(38,185
)
Recoveries 4,593 1,864 6,457
Balance at end of period $2,736 $1,426 $4,162
Liability for third-party lender-owned consumer loans:
Balance at beginning of period $
272
$758 $1,030
Increase (decrease) in liability
130
(100)30
Balance at end of period $
402
$658 $1,060
Year Ended December 31, 2013
Short-term
Loans
Installment
Loans
Total
Allowance for losses for Company-owned consumer loans:
Balance at beginning of period $4,039 $740 $4,779
Consumer loan loss provision
27,549
5,652 33,201
Charge-offs
(32,972
)(6,688)
(39,660
)
Recoveries 5,344 1,247 6,591
Balance at end of period $3,960 $951 $
4,911
Liability for third-party lender-owned consumer loans:
Balance at beginning of period $
308
$564 $872
(Decrease) increase in liability
(36
)194 158
Balance at end of period $
272
$758 $1,030
Year Ended December 31, 2012
Short-term
Loans
Installment
Loans
Total
Allowance for losses for Company-owned consumer loans:
Balance at beginning of period $3,526 $492 $4,018
Consumer loan loss provision
25,308
3,823 29,131
Charge-offs
(32,335
)(4,476)
(36,811
)
Recoveries 7,540 901 8,441
Balance at end of period $4,039 $740 $4,779
Liability for third-party lender-owned consumer loans:
Balance at beginning of period $
333
$445 $778
(Decrease) increase in liability
(25
)119 94
Balance at end of period $
308
$564 $872
In connection with its CSO programs, the Company guarantees consumer loan payment obligations to
unrelated third-party lenders for short-term loans, unsecured installment loans and installment loans that are secured
by a customer’s vehicle, and the Company is required to purchase any defaulted loans it has guaranteed. The
guarantee represents an obligation to purchase specific loans that go into default. See Note 13 for additional
information related to these guarantees.