Cash America 2014 Annual Report Download - page 71
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56
Consumer Loan Balances
The following table summarizes consumer loan balances outstanding as of December 31, 2014 and 2013
(dollars in thousands):
As of December 31,
2014 2013
Company
Owned(a)
Guaranteed
by the
Company(a) Combined(b)
Company
Owned(a)
Guaranteed
by the
Company(a) Combined(b)
Ending consumer loan balances:
Short-term loans $42,954 $2,718 $45,672 $49,856 $4,900 $54,756
Installment loans 6,061 7,073 13,134 9,787 12,639 22,426
Total ending loan balance, gross 49,015 9,791 58,806 59,643 17,539 77,182
Less: Allowance and liabilities for
losses
(4,162
)
(1,060
)(5,222)
(4,911
)
(1,030
)
(5,941
)
Total ending loan balance, net $44,853 $8,731 $53,584 $54,732 $16,509 $71,241
Allowance and liability for losses
as a % of consumer loan
balances, gross
8.5
%
10.8
%
8.9
%
8.2
%
5.9
%
7.7
%
(a) GAAP measure. The consumer loan balances guaranteed by the Company represent loans originated by third-party lenders through the
CSO programs, so these balances are not recorded in the Company’s financial statements. However, the Company has established a
liability for estimated losses in support of its guarantee of these loans, which is reflected in the table above and included in its
consolidated balance sheets.
(b) Except for allowance and liability for estimated losses, amounts represent non-GAAP measures.
Consumer Loan Fees
Consumer loan fees decreased $15.5 million, or 13.7%, to $97.7 million in 2014 compared to
$113.2 million in 2013. The decrease in consumer loan fees was primarily due to a decrease in short-term consumer
loan balances, mainly due to the Company’s strategic decision to discontinue short-term consumer lending in 311 of
its locations in 2014. See “General—Recent Developments—Reduction in Short-Term Consumer Lending
Operations” for further discussion of the recent changes in the Company’s short-term consumer lending activities.
The following table sets forth interest and fees on consumer loans by product type, and the related loan loss
provision for the years ended December 31, 2014 and 2013 (dollars in thousands):
Year Ended December 31,
2014 2013
Short-term
loans
Installment
loans Total
Short-term
loans
Installment
loans Total
Consumer loan fees $83,909 $13,765 $97,674 $
100,146
$13,065 $113,211
Less: consumer loan loss provision 23,269 7,740 31,009
27,513
5,846 33,359
Consumer loan fees, net loss provision $60,640 $6,025 $66,665 $
72,633
$7,219 $79,852
Year-over-year change—$ $(11,993) $ (1,194) $ (13,187)$
(12,056
) $ (759) $
(12,815
)
Year-over-year change—% (16.5
)%
(16.5)% (16.5
)%
(14.2
)%
(9.5
)%
(13.8
)%
Consumer loan loss provision as a %
of consumer loan fees
27.7
%
56.2
%31.7
%
27.5
%
44.7
%
29.5
%