DALLAS, April 26, 2017 /PRNewswire/ -- Santander Consumer
USA Holdings Inc. (NYSE: SC)
("SC") today announced net income for the first quarter of 2017 of
$143 million, or $0.40 per diluted common share.
First Quarter 2017 Key Highlights (variances
compared to first quarter of 2016):
- Total auto originations of $5.4
billion, down 21%
-
- Core retail auto originations of $2.2
billion, down 16%
- Total Chrysler Capital originations of $3.2 billion, down 23%
- Net finance and other interest income of $1.1 billion, down 8%
- Net leased vehicle income of $128
million, up 18%
- Return on average assets of 1.5%
- Average managed assets of $51.2
billion, down 3%
- Common equity tier 1 (CET1) ratio of 13.8%, up 170 bps
- Executed Banco Santander flow agreement - $700 million inaugural transaction
- Issued $3.1 billion in
securitizations
- 49 ABS tranches upgraded, positively impacting more than
$4.2 billion in securities
"We are pleased to report solid financials in the first
quarter of 2017 as we remain disciplined in our approach to credit
in a competitive environment, focusing on maximizing originations
with appropriate risk-adjusted returns across the full credit
spectrum. This strategy, in addition to our focus on compliance and
our commitment to our customers has delivered value to all our
stakeholders through cycles," said Jason Kulas, President and Chief Executive
Officer.
Mr. Kulas continued, "At the end of the first quarter of 2017
we executed an agreement to flow prime retail loans to Banco
Santander and closed the inaugural transaction. We expect this
strategy to further strengthen our relationship with Fiat Chrysler
Automobiles (FCA) and positively influence Chrysler Capital by
providing a stable framework for originations."
Finance receivables, loans and leases, net1 of
$34.2 billion as of March 31,
2017 were flat versus December 31,
2016. Net finance and other interest income decreased 8
percent to $1.1 billion in the first
quarter of 2017 from $1.2 billion in
the first quarter of 2016, primarily driven by a shift in credit
mix as a result of disciplined underwriting standards, and higher
cost of funds, which was driven by an increase in benchmark
rates.
SC's average annual percentage rate (APR) as of the end of the
first quarter of 2017 for retail installment contracts (RICs) held
for investment was 16.5 percent, down from 16.7 percent as of the
end of the first quarter of 2016. These APRs are consistent with
credit trends in our held for investment portfolio. As of the end
of the first quarter of 2017, RICs with FICO® scores
less than 540 decreased to 22.3 percent, from 23.2 percent as of
the end of the first quarter of 2016. In addition, RICs with
FICO® scores greater than 640 increased to 13.8 percent,
from 11.9 percent.
Net leased vehicle income increased 18.1 percent to $128 million in the first quarter of 2017 from
$108 million in the first quarter of
2016 as a result of the continued growth of our leasing
portfolio.
The allowance ratio2 increased 10 basis points, to
12.7 percent as of March 31, 2017, from 12.6 percent as of
December 31, 2016, primarily driven
by the increased balance of loans classified as troubled debt
restructurings (TDRs). A TDR is an accounting classification for
assets that meet certain loan modification or extension criteria.
Loan modifications and extensions are utilized to offer assistance
to some customers experiencing temporary financial hardship. Under
GAAP, the allowance for assets classified as TDRs takes into
consideration expected lifetime losses and assets classified as
TDRs will not be reclassified to non-TDR regardless of subsequent
performance.
SC's RIC net charge-off and delinquency ratio3
increased to 8.8 percent and 3.9 percent, respectively, for the
first quarter of 2017 from 7.6 percent and 3.1 percent,
respectively, for the first quarter of 2016. The increases in the
net charge-off and delinquency ratios, and in TDR balances, were
driven by the aging of the more nonprime 2015 vintage, and slower
portfolio growth since the prior year first quarter.
Provision for credit losses decreased to $635 million in the first quarter of 2017, from
$660 million in the first quarter of
2016, driven primarily by lower allowance for credit loss build.
This was partially offset by higher net credit losses incurred
during the quarter.
In the first quarter of 2017, SC recorded net investment losses
of $76 million, compared to net
investment losses of $69 million in
the first quarter of 2016. The current period losses were primarily
driven by $65 million of lower of
cost or market adjustments related to the held for sale personal
lending portfolio, including $111
million in customer default activity and a $46 million decrease in market discount
consistent with typical seasonal patterns. Excluding the impact of
personal lending, net investment losses totaled $12 million.
"During the quarter we demonstrated strong access to
liquidity, executing more than $7.4
billion in new initiatives including $3.1 billion in securitizations from our SDART
and DRIVE platforms and $700 million
in prime loan sales to Banco Santander," said Izzy Dawood, Chief Financial Officer.
Mr. Dawood continued, "As portfolio growth moderates, we
remain fully committed to managing our expenses and maintaining
top-tier efficiency relative to peers."
During the first quarter of 2017, SC incurred $305 million of operating expenses, up 5 percent
from $291 million in the first
quarter of 2016. The increase was driven by continued investment in
compliance and control functions and severance expense related to
efficiency efforts. SC's expense ratio for the quarter increased to
2.4 percent, up from 2.2 percent during the same period last
year.
In line with SC's strategy to leverage its scalable servicing
platform and increase servicing fee income, SC executed asset sales
of $931 million during the first
quarter of 2017 through the new agreement with Banco Santander and
existing loan sale programs, under which it retains servicing. The
serviced for others portfolio of $11
billion as of March 31, 2017, is down 23 percent from
March 31, 2016, driven by lower prime originations and lower
prime asset sales, and down 8 percent from December 31, 2016. Servicing fee income decreased
29 percent to $32 million in the
first quarter of 2017, from $44
million in the first quarter of 2016.
1 Includes Finance receivables held for investment,
Finance receivables held for sale and Leased vehicles
2 Excludes end of period balances on purchased
receivables portfolio of $211 million
and finance receivables held for sale of $1.9 billion
3 Net charge-off ratio stated on a recorded
investment basis which is unpaid principal balance adjusted for
unaccreted net discounts, subvention and origination costs
Conference Call Information
SC management will host a conference call and webcast to discuss
the first quarter results and other general matters at 9 a.m. Eastern Time on Wednesday, April 26, 2017. The conference call
will be accessible by dialing 877-407-0792 (U.S. domestic), or
201-689-8263 (international). Please dial in 10 minutes prior to
the start of the call. The conference call will also be accessible
via live audio webcast through the Investor Relations section of
the corporate website at http://investors.santanderconsumerusa.com.
Choose "Events" and select the information pertaining to the Q1
2017 Earnings Call. Additionally there will be several slides
accompanying the webcast. Please allow at least 15 minutes prior to
the call to register, download and install any necessary
software.
For those unable to listen to the live broadcast, a replay will
be available on the company's website or by dialing 844-512-2921
(U.S. domestic), or 412-317-6671 (international), conference ID
13660488, approximately two hours after the event. The dial-in
replay will be available for two weeks after the conference call,
and the webcast replay will be available through May 10, 2017.
An investor presentation will also be available by visiting the
Investor Relations page of SC's website
at http://investors.santanderconsumerusa.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Any statements about our expectations, beliefs, plans,
predictions, forecasts, objectives, assumptions, or future events
or performance are not historical facts and may be forward-looking.
These statements are often, but not always, made through the use of
words or phrases such as anticipates, believes, can, could, may,
predicts, potential, should, will, estimates, plans, projects,
continuing, ongoing, expects, intends, and similar words or
phrases. Although we believe that the expectations reflected in
these forward-looking statements are reasonable, these statements
are not guarantees of future performance and involve risks and
uncertainties that are subject to change based on various important
factors, some of which are beyond our control. For additional
discussion of these risks, refer to the section entitled Risk
Factors and elsewhere in our Annual Report on Form 10-K and our
Quarterly Reports on Form 10-Q filed by us with the U.S. Securities
and Exchange Commission (SEC). Among the factors that could cause
the forward-looking statements in this press release and/or our
financial performance to differ materially from that suggested by
the forward-looking statements are (a) the inherent limitations in
internal controls over financial reporting; (b) our ability to
remediate any material weaknesses in internal controls over
financial reporting completely and in a timely manner; (c)
continually changing federal, state, and local laws and regulations
could materially adversely affect our business; (d) adverse
economic conditions in the United States and worldwide may
negatively impact our results; (e) our business could suffer if our
access to funding is reduced; (f) significant risks we face
implementing our growth strategy, some of which are outside our
control; (g) unexpected costs and delays in connection with exiting
our personal lending business; (h) our agreement with Fiat Chrysler
Automobiles US LLC may not result in currently anticipated levels
of growth and is subject to certain performance conditions that
could result in termination of the agreement; (i) our business
could suffer if we are unsuccessful in developing and maintaining
relationships with automobile dealerships; (j) our financial
condition, liquidity, and results of operations depend on the
credit performance of our loans; (k) loss of our key management or
other personnel, or an inability to attract such management and
personnel; (l) certain regulations, including but not limited to
oversight by the Office of the Comptroller of the Currency, the
Consumer Financial Protection Bureau, the European Central Bank,
and the Federal Reserve, whose oversight and regulation may limit
certain of our activities, including the timing and amount of
dividends and other limitations on our business; and (m) future
changes in our relationship with Banco Santander that could
adversely affect our operations. If one or more of the factors
affecting our forward-looking information and statements proves
incorrect, our actual results, performance or achievements could
differ materially from those expressed in, or implied by,
forward-looking information and statements. Therefore, we caution
the reader not to place undue reliance on any forward-looking
information or statements. The effect of these factors is difficult
to predict. Factors other than these also could adversely affect
our results, and the reader should not consider these factors to be
a complete set of all potential risks or uncertainties as new
factors emerge from time to time. Any forward-looking statements
only speak as of the date of this document, and we undertake no
obligation to update any forward-looking information or statements,
whether written or oral, to reflect any change, except as required
by law. All forward-looking statements attributable to us are
expressly qualified by these cautionary statements.
About Santander Consumer USA
Holdings Inc.
Santander Consumer USA Holdings
Inc. (NYSE: SC) ("SC") is a full-service, technology-driven
consumer finance company focused on vehicle finance, third-party
servicing and delivering superior service to our more than 2.7
million customers across the full credit spectrum. The company,
which began originating retail installment contracts in 1997, has a
managed asset portfolio of approximately $51
billion (as of March 31, 2017), and is headquartered in
Dallas.
(www.santanderconsumerusa.com)
Contacts:
Investor
Relations
Evan Black
800.493.8219
InvestorRelations@santanderconsumerusa.com
|
|
Media
Relations
Laurie
Kight
214.801.6455
SCMedia@santanderconsumerusa.com
|
|
|
|
|
|
|
Table 1: Condensed
Consolidated Balance Sheets
|
|
|
|
|
March 31,
2017
|
|
December
31,
2016
|
Assets
|
(Unaudited, Dollars
in thousands)
|
Cash and cash
equivalents
|
$
|
420,826
|
|
$
|
160,180
|
Finance receivables
held for sale, net
|
1,856,019
|
|
2,123,415
|
Finance receivables
held for investment, net
|
23,444,625
|
|
23,481,001
|
Restricted
cash
|
2,946,736
|
|
2,757,299
|
Accrued interest
receivable
|
306,742
|
|
373,274
|
Leased vehicles,
net
|
8,927,536
|
|
8,564,628
|
Furniture and
equipment, net
|
67,921
|
|
67,509
|
Federal, state and
other income taxes receivable
|
93,386
|
|
87,352
|
Related party taxes
receivable
|
467
|
|
1,087
|
Goodwill
|
74,056
|
|
74,056
|
Intangible
assets
|
32,275
|
|
32,623
|
Due from
affiliates
|
29,480
|
|
31,270
|
Other
assets
|
861,871
|
|
785,410
|
Total
assets
|
$
|
39,061,940
|
|
$
|
38,539,104
|
Liabilities and
Equity
|
|
|
|
Liabilities:
|
|
|
|
Notes payable —
credit facilities
|
$
|
4,958,638
|
|
$
|
6,739,817
|
Notes payable —
secured structured financings
|
23,666,666
|
|
21,608,889
|
Notes payable —
related party
|
2,850,000
|
|
2,975,000
|
Accrued interest
payable
|
37,759
|
|
33,346
|
Accounts payable and
accrued expenses
|
414,851
|
|
379,021
|
Deferred tax
liabilities, net
|
1,342,055
|
|
1,278,064
|
Due to
affiliates
|
90,341
|
|
50,620
|
Other
liabilities
|
282,632
|
|
235,728
|
Total
liabilities
|
33,642,942
|
|
33,300,485
|
|
|
|
|
Equity:
|
|
|
|
Common stock, $0.01
par value
|
3,594
|
|
3,589
|
Additional paid-in
capital
|
1,662,200
|
|
1,657,611
|
Accumulated other
comprehensive income (loss), net
|
35,504
|
|
28,259
|
Retained
earnings
|
3,717,700
|
|
3,549,160
|
Total stockholders'
equity
|
5,418,998
|
|
5,238,619
|
Total liabilities and
equity
|
$
|
39,061,940
|
|
$
|
38,539,104
|
|
|
|
Table 2: Condensed
Consolidated Statements of Income
|
|
|
|
Three Months
Ended
March 31,
|
|
2017
|
|
2016
|
|
(Unaudited, Dollars
in thousands, except per share amounts)
|
Interest on finance
receivables and loans
|
$
|
1,209,186
|
|
$
|
1,286,195
|
Leased vehicle
income
|
418,233
|
|
329,792
|
Other finance and
interest income
|
3,825
|
|
3,912
|
Total finance and
other interest income
|
1,631,244
|
|
1,619,899
|
Interest
expense
|
227,089
|
|
184,735
|
Leased vehicle
expense
|
290,171
|
|
221,360
|
Net finance and other
interest income
|
1,113,984
|
|
1,213,804
|
Provision for credit
losses
|
635,013
|
|
660,170
|
Net finance and other
interest income after provision for credit losses
|
478,971
|
|
553,634
|
Profit
sharing
|
7,945
|
|
11,394
|
Net finance and other
interest income after provision for credit losses and profit
sharing
|
471,026
|
|
542,240
|
Investment losses,
net
|
(76,399)
|
|
(69,056)
|
Servicing fee
income
|
31,684
|
|
44,494
|
Fees, commissions,
and other
|
100,195
|
|
102,120
|
Total other
income
|
55,480
|
|
77,558
|
Compensation
expense
|
136,262
|
|
119,842
|
Repossession
expense
|
71,299
|
|
73,545
|
Other operating
costs
|
97,517
|
|
97,469
|
Total operating
expenses
|
305,078
|
|
290,856
|
Income before income
taxes
|
221,428
|
|
328,942
|
Income tax
expense
|
78,001
|
|
120,643
|
Net income
|
$
|
143,427
|
|
$
|
208,299
|
|
|
|
|
Net income per common
share (basic)
|
$
|
0.40
|
|
$
|
0.58
|
Net income per common
share (diluted)
|
$
|
0.40
|
|
$
|
0.58
|
Weighted average
common shares (basic)
|
359,105,050
|
|
357,974,890
|
Weighted average
common shares (diluted)
|
360,616,032
|
|
358,840,322
|
|
|
|
Table 3: Other
Financial Information
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2017
|
|
2016
|
Ratios
|
(Unaudited, Dollars
in thousands)
|
|
Yield on individually
acquired retail installment contracts
|
15.7%
|
|
16.5%
|
|
Yield on purchased
receivables portfolios
|
20.2%
|
|
25.3%
|
|
Yield on receivables
from dealers
|
5.3%
|
|
5.2%
|
|
Yield on personal
loans (1)
|
24.8%
|
|
22.6%
|
|
Yield on earning
assets (2)
|
13.5%
|
|
14.6%
|
|
Cost of debt
(3)
|
2.9%
|
|
2.4%
|
|
Net interest margin
(4)
|
11.2%
|
|
12.7%
|
|
Expense ratio
(5)
|
2.4%
|
|
2.2%
|
|
Return on average
assets (6)
|
1.5%
|
|
2.2%
|
|
Return on average
equity (7)
|
10.8%
|
|
18.6%
|
|
Net charge-off ratio
on individually acquired retail installment contracts
(8)
|
8.8%
|
|
7.6%
|
|
Net charge-off ratio
on purchased receivables portfolios (8)
|
0.6%
|
|
—
|
|
Net charge-off ratio
on receivables from dealers (8)
|
—
|
|
—
|
|
Net charge-off ratio
on personal loans (8)
|
78.5%
|
|
—
|
|
Net charge-off ratio
(8)
|
8.8%
|
|
7.5%
|
|
Delinquency ratio on
individually acquired retail installment contracts held for
investment, end of period (9)
|
3.9%
|
|
3.1%
|
|
Delinquency ratio on
personal loans, end of period (9)
|
12.0%
|
|
11.0%
|
|
Delinquency ratio on
loans held for investment, end of period (9)
|
3.8%
|
|
3.1%
|
|
Allowance ratio
(10)
|
12.7%
|
|
12.0%
|
|
Common Equity Tier 1
capital ratio (11)
|
13.8%
|
|
12.1%
|
|
|
|
|
|
Other Financial
Information
|
|
|
|
|
Charge-offs, net of
recoveries, on individually acquired retail installment
contracts
|
$
|
598,933
|
|
$
|
540,313
|
|
Charge-offs, net of
recoveries, on purchased receivables portfolios
|
353
|
|
(24)
|
|
Charge-offs, net of
recoveries, on receivables from dealers
|
—
|
|
—
|
|
Charge-offs, net of
recoveries, on personal loans***
|
3,458
|
|
—
|
|
Charge-offs, net of
recoveries, on capital leases
|
1,314
|
|
2,471
|
|
Total charge-offs,
net of recoveries
|
$
|
604,058
|
|
$
|
542,760
|
|
End of period
Delinquent principal over 60 days, individually acquired retail
installment contracts held for investment
|
$
|
1,044,288
|
|
$
|
852,863
|
|
End of period
Delinquent principal over 60 days, personal loans
|
$
|
169,429
|
|
$
|
153,608
|
|
End of period
Delinquent principal over 60 days, loans held for
investment
|
$
|
1,049,030
|
|
$
|
864,433
|
|
End of period assets
covered by allowance for credit losses
|
$
|
27,188,404
|
|
$
|
27,719,697
|
|
End of period Gross
finance receivables and loans held for investment
|
$
|
27,371,719
|
|
$
|
27,981,142
|
|
End of period Gross
finance receivables, loans, and leases held for
investment
|
$
|
37,447,052
|
|
$
|
36,280,402
|
|
Average Gross
individually acquired retail installment contracts held for
investment
|
$
|
27,089,438
|
|
$
|
27,065,426
|
|
Average Gross
personal loans held for investment
|
$
|
17,610
|
|
$
|
9,128
|
|
Average Gross
individually acquired retail installment contracts
|
$
|
28,200,907
|
|
$
|
28,319,861
|
|
Average Gross
purchased receivables portfolios
|
220,786
|
|
337,180
|
|
Average Gross
receivables from dealers
|
70,165
|
|
76,415
|
|
Average Gross
personal loans
|
1,488,665
|
|
1,727,635
|
|
Average Gross capital
leases
|
30,599
|
|
60,003
|
|
Average Gross finance
receivables, loans and capital leases
|
$
|
30,011,122
|
|
$
|
30,521,094
|
|
Average Gross finance
receivables, loans, and leases
|
$
|
39,860,199
|
|
$
|
38,292,053
|
|
Average Managed
assets
|
$
|
51,229,729
|
|
$
|
52,961,885
|
|
Average Total
assets
|
$
|
38,910,193
|
|
$
|
37,112,650
|
|
Average
Debt
|
$
|
31,553,342
|
|
$
|
30,948,314
|
|
Average Total
equity
|
$
|
5,325,581
|
|
$
|
4,491,317
|
|
|
(1)
|
Includes Finance and
other interest income; excludes fees
|
(2)
|
"Yield on earning
assets" is defined as the ratio of annualized Total finance and
other interest income, net of Leased vehicle expense, to Average
gross finance receivables, loans and leases
|
(3)
|
"Cost of debt" is
defined as the ratio of annualized Interest expense to Average
debt
|
(4)
|
"Net interest margin"
is defined as the ratio of annualized Net finance and other
interest income to Average gross finance receivables, loans and
leases
|
(5)
|
"Expense ratio" is
defined as the ratio of annualized Operating expenses to Average
managed assets
|
(6)
|
"Return on average
assets" is defined as the ratio of annualized Net income to Average
total assets
|
(7)
|
"Return on average
equity" is defined as the ratio of annualized Net income to Average
total equity
|
(8)
|
"Net charge-off
ratio" is defined as the ratio of annualized Charge-offs, on a
recorded investment basis, net of recoveries, to average unpaid
principal balance of the respective held-for-investment portfolio.
Effective as of September 30, 2016, the Company records the
charge-off activity for certain personal loans within the provision
for credit losses due to the reclassification of these loans from
held for sale to held for investment.
|
(9)
|
"Delinquency ratio"
is defined as the ratio of End of period Delinquent principal over
60 days to End of period gross balance of the respective portfolio,
excludes capital leases
|
(10)
|
"Allowance ratio" is
defined as the ratio of Allowance for credit losses, which excludes
impairment on purchased receivables portfolios, to End of period
assets covered by allowance for credit losses
|
(11)
|
"Common Equity Tier 1
Capital ratio" is a non-GAAP ratio defined as the ratio of Total
common equity tier 1 capital to Total risk-weighted assets (for a
reconciliation from GAAP to this non-GAAP measure, see
"Reconciliation of Non-GAAP Measures" in Table 8 of this
release)
|
|
|
|
|
|
|
Table 4: Credit
Quality
|
|
|
|
Amounts related to
our individually acquired retail installment contracts as of and
for the three months ended March 31, 2017 and 2016, are as
follows:
|
|
|
|
(Unaudited,
Dollars in thousands)
|
|
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
Credit loss
allowance — beginning of period
|
$
|
3,411,055
|
|
$
|
3,197,414
|
Provision for credit
losses
|
629,097
|
|
663,126
|
Charge-offs
|
(1,224,697)
|
|
(1,150,628)
|
Recoveries
|
625,764
|
|
610,315
|
Credit loss
allowance — end of period
|
$
|
3,441,219
|
|
$
|
3,320,227
|
|
|
|
|
Net
charge-offs
|
$
|
598,933
|
|
$
|
540,313
|
Average unpaid
principal balance (UPB)
|
27,089,438
|
|
28,319,861
|
Charge-off
ratio1
|
8.8%
|
|
7.6%
|
|
|
|
March 31,
20172
|
|
December 31,
20162
|
Principal 30-59 days
past due
|
$
|
2,336,113
|
|
8.6%
|
|
$
|
2,911,800
|
|
10.7%
|
Delinquent principal
over 59 days3
|
1,148,517
|
|
4.2%
|
|
1,520,105
|
|
5.6%
|
Total delinquent
contracts
|
$
|
3,484,630
|
|
12.8%
|
|
$
|
4,431,905
|
|
16.3%
|
|
|
|
March 31,
2017
|
|
December 31,
2016
|
TDR - Unpaid
principal balance
|
$
|
5,788,390
|
|
$
|
5,599,567
|
TDR -
Impairment
|
1,604,489
|
|
1,611,295
|
TDR allowance
ratio
|
27.7%
|
|
28.8%
|
|
|
|
|
Non-TDR - Unpaid
principal balance
|
$
|
21,286,466
|
|
$
|
21,528,406
|
Non-TDR -
Allowance
|
1,836,730
|
|
1,799,760
|
Non-TDR allowance
ratio
|
8.6%
|
|
8.4%
|
|
|
|
|
Total - Unpaid
principal balance
|
$
|
27,074,856
|
|
$
|
27,127,973
|
Total -
Allowance
|
3,441,219
|
|
3,411,055
|
Total allowance
ratio
|
12.7%
|
|
12.6%
|
|
|
1
|
"Net charge-off
ratio" is defined as the ratio of annualized Charge-offs, on a
recorded investment basis, net of recoveries, to average unpaid
principal balance of the respective portfolio
|
2
|
Percent of unpaid
principal balance.
|
3
|
Interest is accrued
until 60 days past due in accordance with the Company's account
policy for retail installment contracts.
|
|
|
|
Table 5:
Originations
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
March 31,
2017
|
|
March 31,
2016
|
|
December 31,
2016
|
Retained
Originations
|
(Unaudited, Dollar
amounts in thousands)
|
Retail installment
contracts
|
$
|
3,185,373
|
|
$
|
4,418,930
|
|
$
|
3,068,154
|
Average
APR
|
17.0%
|
|
15.3%
|
|
15.4%
|
Average FICO®
(a)
|
593
|
|
601
|
|
604
|
Discount
|
0.4%
|
|
0.6%
|
|
0.3%
|
|
|
|
|
|
|
Personal
loans
|
$
|
—
|
|
$
|
9
|
|
$
|
190,143
|
Average
APR
|
—
|
|
24.9%
|
|
25.2%
|
Discount
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
Leased
vehicles
|
$
|
1,600,659
|
|
$
|
1,617,080
|
|
$
|
971,865
|
|
|
|
|
|
|
Capital lease
receivables
|
$
|
1,177
|
|
$
|
1,853
|
|
$
|
1,424
|
Total originations
retained
|
$
|
4,787,209
|
|
$
|
6,037,872
|
|
$
|
4,231,586
|
|
|
|
|
|
|
Sold Originations
(b)
|
|
|
|
|
|
Retail installment
contracts
|
$
|
601,205
|
|
$
|
743,873
|
|
$
|
484,916
|
Average
APR
|
5.8%
|
|
2.5%
|
|
4.4%
|
Average FICO®
(c)
|
727
|
|
761
|
|
746
|
Total originations
sold
|
$
|
601,205
|
|
$
|
743,873
|
|
$
|
484,916
|
|
|
|
|
|
|
Total
originations
|
$
|
5,388,414
|
|
$
|
6,781,745
|
|
$
|
4,716,502
|
|
|
(a)
|
Unpaid principal
balance excluded from the weighted average FICO score is $443
million, $813 million, and $426 million for the three months ended
March 31, 2017 and 2016, and the three months ended
December 31, 2016, respectively, as the borrowers on these
loans did not have FICO scores at origination.
|
|
|
(b)
|
Only includes assets
both originated and sold in the period. Total asset sales for the
period are shown in Table 6.
|
|
|
(c)
|
Unpaid principal
balance excluded from the weighted average FICO score is $80
million, $97 million, and $50 million for the three months ended
March 31, 2017 and 2016, and the three months ended
December 31, 2016, respectively, as the borrowers on these
loans did not have FICO scores at origination.
|
|
|
|
Table 6: Asset
Sales
|
|
Asset sales may
include assets originated in prior periods.
|
|
|
Three Months
Ended
|
Three Months
Ended
|
|
March 31,
2017
|
|
March 31,
2016
|
|
December 31,
2016
|
|
(Unaudited, Dollar
amounts in thousands)
|
Retail installment
contracts
|
$
|
930,590
|
|
$
|
859,955
|
|
$
|
1,381,036
|
Average
APR
|
5.9%
|
|
2.4%
|
|
6.3%
|
Average
FICO®
|
726
|
|
764
|
|
721
|
|
|
|
|
|
|
Personal
loans
|
$
|
—
|
|
$
|
869,349
|
|
$
|
—
|
Average
APR
|
—
|
|
17.9%
|
|
—
|
Total asset
sales
|
$
|
930,590
|
|
$
|
1,729,304
|
|
$
|
1,381,036
|
|
|
|
Table 7: Ending
Portfolio
|
|
Ending outstanding
balance, average APR and remaining unaccreted dealer discount of
our held for investment portfolio as of March 31, 2017, and
December 31, 2016, are as follows:
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
(Unaudited, Dollar
amounts in thousands)
|
Retail installment
contracts
|
$
|
27,285,930
|
|
$
|
27,358,147
|
Average
APR
|
16.5%
|
|
16.4%
|
Discount
|
1.8%
|
|
2.3%
|
|
|
|
|
Personal
loans
|
$
|
15,412
|
|
$
|
19,361
|
Average
APR
|
32.9%
|
|
31.5%
|
|
|
|
|
Receivables from
dealers
|
$
|
70,377
|
|
$
|
69,431
|
Average
APR
|
5.1%
|
|
4.9%
|
|
|
|
|
Leased
vehicles
|
$
|
10,047,574
|
|
$
|
9,612,953
|
|
|
|
|
Capital
leases
|
$
|
27,759
|
|
$
|
31,872
|
|
|
|
Table 8:
Reconciliation of Non-GAAP Measures
|
|
|
Three Months
Ended
|
|
March 31,
2017
|
|
March 31,
2016
|
|
(Unaudited, Dollar
amounts in thousands)
|
Total
equity
|
$
|
5,418,998
|
|
$
|
4,604,739
|
Deduct:
Goodwill and other intangible assets, net of deferred tax
liabilities
|
182,156
|
|
201,684
|
Deduct:
Accumulated other comprehensive income, net
|
35,504
|
|
(36,065)
|
Tier 1 common
capital
|
$
|
5,201,338
|
|
$
|
4,439,120
|
Risk weighted assets
(a)
|
$
|
37,799,513
|
|
$
|
36,691,264
|
Common Equity Tier 1
capital ratio (b)
|
13.8%
|
|
12.1%
|
|
|
(a)
|
Under the banking
agencies' risk-based capital guidelines, assets and credit
equivalent amounts of derivatives and off-balance sheet exposures
are assigned to broad risk categories. The aggregate dollar amount
in each risk category is multiplied by the associated risk weight
of the category. The resulting weighted values are added together
with the measure for market risk, resulting in the Company's and
the Bank's total Risk weighted assets.
|
(b)
|
CET1 is calculated
under Basel III regulations required as of January 1,
2015.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/santander-consumer-usa-holdings-inc-reports-first-quarter-2017-results-300445973.html
SOURCE Santander Consumer USA
Holdings Inc.