DALLAS, Jan. 25, 2017 /PRNewswire/ -- Santander Consumer USA Holdings Inc. (NYSE: SC) ("SC") today announced net income for the fourth quarter 2016 of $61 million, or $0.17 cents per diluted common share.
Full year 2016 net income was $766 million, or $2.13 cents per diluted common share.
Fourth Quarter 2016 Key Highlights (variances compared to fourth quarter 2015):
-- Total auto originations of $4.5 billion, down 24% -- Core retail auto originations of $2.0 billion, up 1% -- Total Chrysler Capital originations of $2.5 billion, down 36% -- Total finance and other interest income of $1.6 billion, up 4% -- Net finance and other interest income of $1.1 billion, down 5% -- Common equity tier 1 (CET1) ratio of 13.4%, up 220 basis points -- Issued $3.3 billion in securitizations
Full Year 2016 Key Highlights (variances compared to full year 2015):
-- Total auto originations of $21.9 billion, down 20% -- Interest on individually acquired retail installment contracts of $4.6 billion, up 3% -- Net finance and other interest income of $4.7 billion, flat -- Expense ratio of 2.2%, up 10 basis points -- Return on average assets of 2.0% -- Return on average equity of 15.8% -- Average managed assets of $52.7 billion, up 8% -- Retail installment contract ("RIC") net charge-off ratio of 7.9%, up 150 basis points -- Average FICO of retained originations 598, up 14 points -- Issued $8.0 billion in securitizations -- Originated more than $170 million through our online, direct-to-consumer platform, Roadloans.com -- Real-time call monitoring rolled out for all inbound/outbound call center lines in 2016
"Full year 2016 results demonstrate SC's continued profitability and solid returns, earning net income of $766 million while also taking a measured approach to originations in a competitive market and improving the credit quality of our balance sheet. As expected, our 2016 vintage-level loss performance continues to come in better than 2015. We expect this positive trend will be reflected in nominal gross losses in future quarters. We continue to believe our consistent focus on disciplined underwriting, compliance and being simple, personal and fair in everything we do is setting SC up for long-term, sustainable and differentiated success," said Jason Kulas, President and Chief Executive Officer.
Mr. Kulas continued, "I would like to thank all our employees, customers and dealers for being an integral part of our success this year. We are optimistic about SC's prospects for 2017 as our fundamentals continue to strengthen, and we remain committed to better serving our customers and creating value for all our stakeholders."
Finance receivables, loans and leases, net(1), increased 4 percent, to $34.2 billion at December 31, 2016, from $32.7 billion at December 31, 2015, driven by an increase in lease assets. Net finance and other interest income decreased 5 percent, to $1.13 billion in the fourth quarter 2016 from $1.19 billion in the fourth quarter 2015, primarily driven by a higher cost of funds and lower interest income from personal installment loans sold in February 2016.
SC's average annual percentage rate (APR) as of the end of the fourth quarter 2016 for retail installment contracts (RICs) held for investment was 16.4 percent, down from 16.8 percent as of the end of the fourth quarter 2015. These APRs are consistent with credit trends in our held for investment portfolio. As of the end of the fourth quarter 2016, RICs with FICO® scores less than 540 decreased to 22.1 percent, from 23.4 percent as of the end of the fourth quarter 2015. In addition, RICs with FICO® scores greater than 640 increased to 13.8 percent, from 12.2 percent.
Net leased vehicle income increased 41 percent to $123 million in the fourth quarter 2016 from $87 million in the fourth quarter 2015 due to continued leasing portfolio growth.
The allowance for credit loss balance of $3.4 billion at December 31, 2016 increased $9 million, or 26 basis points, from the prior quarter end. The allowance ratio(2) increased to 12.6 percent as of December 31, 2016, from 11.9 percent as of December 31, 2015, primarily driven by the increased balance of loans classified as troubled debt restructurings (TDRs) and a denominator effect from slower portfolio growth. 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 hardship. Under GAAP, the allowance for assets classified as TDRs takes into consideration expected lifetime losses.
SC's RIC net charge-off and delinquency ratio(3) increased to 9.4 percent and 5.1 percent, respectively, for the fourth quarter 2016 from 8.9 percent and 4.4 percent, respectively, for the fourth quarter 2015. The increases in the net charge-off and delinquency ratios, and in TDR balances, are driven by the aging of the more nonprime 2015 vintage, and the denominator effect of slower portfolio growth since the prior year fourth quarter.
"We demonstrated strong access to liquidity in 2016, as we added two new warehouse facilities, including one new committed lender, and we continued to be the largest auto ABS issuer in the market in 2016, issuing $8 billion in securitizations across all three of our platforms," said Izzy Dawood, Chief Financial Officer. "Improving our liquidity position as we experienced delays in the filing of our financial statements further evidences the consistency of the cash flows of our originations."
Mr. Dawood continued, "Executing the agreement to flow assets to Banco Santander is a top priority in the first quarter of 2017. Along with the national roll out of the dealer VIP program with our Fiat-Chrysler dealers and our continued focus on dealer floorplan lending through Santander Bank N.A. we believe these strategies will positively impact our volume with Chrysler."
During the year SC increased the amount of dealers participating in the dealer VIP program with approximately 500 dealers as of year end and increased dealer receivable originations ("floorplan") more than 60 percent versus 2015.
Provision for credit losses decreased to $686 million in the fourth quarter 2016, from $851 million in the fourth quarter 2015, as the prior year quarter included a qualitative reserve of $149 million to account for the higher concentration of originations with limited credit experience. This reserve was eliminated as of the end of the third quarter 2016 since the model was able to incorporate the loss estimate.
In the fourth quarter 2016, SC recorded net investment losses of $168 million, compared to losses of $229 million in the fourth quarter 2015. The current period losses were primarily driven by $146 million of lower of cost or market adjustments related to the held for sale personal lending portfolio, including $116 million in customer default activity and a $30 million increase in discount (lower of cost or market) consistent with seasonal origination patterns for this portfolio. Excluding the impact of personal lending, investment losses totaled $23 million driven by losses related to a fourth quarter off-balance sheet securitization and a lower of cost or market adjustment on certain auto assets classified as held for sale.
During the quarter, SC incurred $296 million of operating expenses, up 15 percent from $257 million in the fourth quarter 2015, driven by increased compensation expense, primarily due to the continued investment in our control and compliance infrastructure, a non-recurring expense of approximately $13 million and higher repossession expense.
(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 $158 million and finance receivables held for sale of $2.1 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
In line with SC's strategy to leverage its scalable servicing platform and increase servicing fee income, SC executed asset sales of $1.4 billion during the fourth quarter through existing loan sale programs and one off-balance sheet securitization, under which it retains servicing. The serviced for others portfolio of $11.9 billion as of December 31, 2016, is down 21 percent from December 31, 2015, driven by lower prime originations and lower prime asset sales, and down 2 percent versus the prior quarter. Servicing fee income decreased 24 percent to $32 million in the fourth quarter 2016, from $42 million in the fourth quarter 2015.
Conference Call Information
SC management will host a conference call and webcast to discuss the fourth quarter results and other general matters at 9 a.m. Eastern Time on Wednesday, January 25, 2017. The conference call will be accessible by dialing 888-503-8172 (U.S. domestic), or 719-325-2434 (international), conference ID 7139377. 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 Q4 2016 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 7139377, 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 February 8, 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. New factors emerge from time to time, and management cannot assess the impact of any such factor on our business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. 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 $52 billion (as of December 31, 2016), and is headquartered in Dallas. (www.santanderconsumerusa.com)
Santander Consumer USA Holdings Inc.
Financial Supplement
Fourth Quarter and Full Year 2016
Table 1: Consolidated Balance Sheets December 31, December 31, 2016 2015 ---- ---- (Unaudited, Dollars in thousands) Assets Cash and cash equivalents $160,180 $18,893 Finance receivables held for sale, net 2,123,415 2,859,575 Finance receivables held for investment, net 23,481,001 23,367,788 Restricted cash 2,757,299 2,236,329 Accrued interest receivable 373,274 395,387 Leased vehicles, net 8,564,628 6,497,310 Furniture and equipment, net 67,509 58,007 Federal, state and other income taxes receivable 87,352 267,636 Related party taxes receivable 1,087 71 Goodwill 74,056 74,056 Intangible assets 32,623 33,016 Due from affiliates 31,270 58,599 Other assets 785,410 582,291 ------- ------- Total assets $38,539,104 $36,448,958 =========== =========== Liabilities and Equity: Liabilities: Notes payable -credit facilities $6,886,681 $6,902,779 Notes payable -secured structured financings 21,462,025 20,872,900 Notes payable - related party 2,975,000 2,600,000 Accrued interest payable 33,346 22,544 Accounts payable and accrued expenses 379,021 413,269 Federal, state and other income taxes payable 18,201 2,462 Deferred tax liabilities, net 1,278,064 881,225 Due to affiliates 50,620 58,148 Other liabilities 217,527 263,082 ------- ------- Total liabilities 33,300,485 32,016,409 ---------- ---------- Equity: Common stock, $0.01 par value 3,589 3,579 Additional paid-in capital 1,657,611 1,644,151 Accumulated other comprehensive income (loss), net 28,259 2,125 Retained earnings 3,549,160 2,782,694 --------- --------- Total stockholders' equity 5,238,619 4,432,549 --------- --------- Total liabilities and equity $38,539,104 $36,448,958 =========== ===========
Table 2: Consolidated Statements of Income Three Months Ended Twelve Months Ended December 31, December 31, ------------ ------------ 2016 2015 2016 2015 ---- ---- ---- ---- (Unaudited, Dollars in thousands, except per share amounts) Interest on finance receivables and loans $1,222,468 $1,270,072 $5,026,790 $5,031,829 Leased vehicle income 401,020 295,109 1,487,671 1,037,793 Other finance and interest income 3,695 (5,251) 15,135 18,162 ----- ------ ------ ------ Total finance and other interest income 1,627,183 1,559,930 6,529,596 6,087,784 Interest expense 216,980 157,893 807,484 628,791 Leased vehicle expense 278,229 208,255 995,459 726,420 ------- ------- ------- ------- Net finance and other interest income 1,131,974 1,193,782 4,726,653 4,732,573 Provision for credit losses 685,711 850,723 2,468,200 2,785,871 ------- ------- --------- --------- Net finance and other interest income after provision for credit losses 446,263 343,059 2,258,453 1,946,702 Profit sharing 12,176 10,649 47,816 57,484 ------ ------ ------ ------ Net finance and other interest income after provision for credit losses and profit sharing 434,087 332,410 2,210,637 1,889,218 Investment gains (losses), net (168,344) (229,212) (444,759) (95,214) Servicing fee income 32,205 42,357 156,134 131,113 Fees, commissions, and other 88,143 89,268 382,171 385,744 ------ ------ ------- ------- Total other income (47,996) (97,587) 93,546 421,643 Compensation expense 126,982 108,458 498,224 434,041 Repossession expense 75,539 66,456 293,355 241,522 Other operating costs 93,384 81,708 351,893 345,686 ------ ------ ------- ------- Total operating expenses 295,905 256,622 1,143,472 1,021,249 ------- ------- --------- --------- Income before income taxes 90,186 (21,799) 1,160,711 1,289,612 Income tax expense 28,911 (2,244) 394,245 465,572 ------ ------ ------- ------- Net income $61,275 $(19,555) $766,466 $824,040 ======= ======== ======== ======== Net income per common share (basic) $0.17 $(0.05) $2.14 $2.32 ===== ====== ===== ===== Net income per common share (diluted) $0.17 $(0.05) $2.13 $2.31 ===== ====== ===== ===== Weighted average common shares (basic) 358,582,203 357,927,012 358,280,814 355,102,742 =========== =========== =========== =========== Weighted average common shares (diluted) 360,323,179 361,956,163 359,165,172 356,163,076 =========== =========== =========== ===========
Table 3: Other Financial Information Three Months Ended Twelve Months Ended December 31, December 31, ------------ ------------ 2016 2015 2016 2015 ---- ---- ---- ---- Ratios (Unaudited, Dollars in thousands) Yield on individually acquired retail installment contracts 15.8% 16.4 % 16.1% 16.7 % Yield on purchased receivables portfolios 18.1% 25.6 % 24.3% 16.2 % Yield on receivables from dealers 5.1% 5.3 % 5.2% 5.0 % Yield on personal loans (1) 22.9% 20.0 % 23.9% 20.3 % Yield on earning assets (2) 13.5% 14.4 % 14.1% 14.8 % Cost of debt (3) 2.8% 2.1 % 2.6% 2.1 % Net interest margin (4) 11.3% 12.7 % 12.0% 13.1 % Expense ratio (5) 2.3% 2.0 % 2.2% 2.1 % Return on average assets (6) 0.6% (0.2)% 2.0% 2.4 % Return on average equity (7) 4.7% (1.8)% 15.8% 20.1 % Net charge-off ratio on individually acquired retail installment contracts (8) 9.4% 8.9 % 7.9% 6.7 % Adjusted net charge-off ratio on individually acquired retail installment contracts (8) 9.4% 8.9 % 7.9% 6.4 % Net charge-off ratio on purchased receivables portfolios (8) 1.3% 3.5 % - (0.5)% Net charge-off ratio on receivables from dealers (8) 1.5% - 0.5% - Net charge-off ratio on personal loans (8) (9) - - - 40.8 % Adjusted net charge-off ratio on personal loans (8) (9) - - - 17.9 % Net charge-off ratio (8) (9) 8.9% 8.3 % 7.4% 8.4 % Adjusted net charge-off ratio (8) (9) 8.9% 8.3 % 7.4% 7.0 % Delinquency ratio on individually acquired retail installment contracts held for investment, end of period (10) 5.1% 4.4 % 5.1% 4.4 % Delinquency ratio on personal loans, end of period (10) 11.3% 6.9 % 11.3% 6.9 % Delinquency ratio on loans held for investment, end of period (10) 5.1% 4.6 % 5.1% 4.6 % Allowance ratio (11) 12.6% 11.9 % 12.6% 11.9 % Common Equity Tier 1 capital ratio (12) 13.4% 11.2 % 13.4% 11.2 % Other Financial Information Charge-offs, net of recoveries, on individually acquired retail installment contracts $674,442 $611,526 $2,257,848 $1,795,771 Charge-offs, net of recoveries, on purchased receivables portfolios 790 3,383 (17) (2,720) Charge-offs, net of recoveries, on receivables from dealers 258 - 393 - Charge-offs, net of recoveries, on personal loans - - - 673,294 Charge-offs, net of recoveries, on capital leases 2,219 19,859 9,384 30,907 ----- ------ ----- ------ Total charge-offs, net of recoveries $677,709 $634,768 $2,267,608 $2,497,252 End of period Delinquent principal over 60 days, individually acquired retail installment contracts held for investment $1,386,218 $1,191,567 $1,386,218 $1,191,567 End of period Delinquent principal over 60 days, personal loans $176,873 $168,906 $176,873 $168,906 End of period Delinquent principal over 60 days, loans held for investment $1,392,789 $1,377,770 $1,392,789 $1,377,770 End of period assets covered by allowance for credit losses $27,229,276 $27,007,816 $27,229,276 $27,007,816 End of period Gross finance receivables and loans held for investment $27,427,578 $27,368,579 $27,427,578 $27,368,579 End of period Gross finance receivables, loans, and leases held for investment $37,040,531 $34,694,875 $37,040,531 $34,694,875 Average Gross individually acquired retail installment contracts $28,604,117 $27,560,674 $28,652,897 $26,818,625 Average Gross purchased receivables portfolios 241,404 385,420 286,354 562,512 Average Gross receivables from dealers 69,745 76,598 71,997 89,867 Average Gross personal loans 1,405,187 2,309,474 1,413,440 2,229,080 Average Gross capital leases 34,584 94,670 45,949 114,605 ------ ------ ------ ------- Average Gross finance receivables, loans and capital leases $30,355,037 $30,426,836 $30,470,637 $29,814,689 Average Gross finance receivables, loans, and leases $39,941,127 $37,531,621 $39,289,341 $36,140,498 Average Managed assets $52,038,692 $52,485,567 $52,731,119 $48,919,418 Average Total assets $38,513,454 $36,039,307 $37,944,529 $35,050,503 Average Debt $31,416,694 $30,137,927 $31,330,686 $29,699,885 Average Total equity $5,185,840 $4,447,457 $4,850,653 $4,096,042
(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 portfolio (9) Effective as of September 30, 2015, changes in the value of the personal lending portfolio driven by customer default activity are classified in net investment gains (losses) due to the classification of the portfolio as held for sale. As there was accordingly no charge- off activity on personal loans for the three months ended December 31, 2015, the annualized charge-off rate on personal loans reported as of September 30, 2015 has been used as the full year charge- off rate. The average gross balance of personal loans used in the full year charge-off rate was $2,201,551. Additionally, the denominators of the aggregate Net charge-off ratios for the three and twelve months ended December 31, 2015 have been adjusted to $28,123,241 and $29,279,874, respectively, to exclude Personal Lending balances for the three months ended December 31, 2015. (10) "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 (11) "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 (12) "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
Table 4: Credit Quality Amounts related to our individually acquired retail installment contracts as of and for the three and twelve months December 31, 2016 and 2015, are as follows: (Unaudited, Dollars in thousands)
Three Months Ended December 31, Twelve Months Ended December 31, ------------------------------- -------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Credit loss allowance - beginning of period $3,401,285 $2,982,699 $3,197,414 $2,586,685 Provision for credit losses 684,213 826,241 2,471,490 2,433,617 Charge-offs (1,293,743) (1,143,727) (4,723,648) (3,897,480) Recoveries 619,301 532,201 2,465,800 2,101,709 Transfers to held-for- sale - - - (27,117) --- --- --- ------- Credit loss allowance - end of period $3,411,056 $3,197,414 $3,411,056 $3,197,414 ========== ========== ========== ========== Net charge-offs $674,442 $611,526 $2,257,848 $1,795,771 Average unpaid principal balance (UPB) 28,604,117 27,560,674 28,652,897 26,818,625 Charge-off ratio1 9.4% 8.9% 7.9% 6.7% December 31, 2016(2) December 31, 2015(2) ------------------- ------------------- Principal 31-60 days past due $2,735,577 10.1% $2,454,986 9.1% Delinquent principal over 60 days 1,386,218 5.1% 1,191,567 4.4% --------- --- --------- --- Total delinquent contracts $4,121,795 15.2% $3,646,553 13.6% ========== ==== ========== ====
December 31, December 31, 2016 2015 ---- ---- (Dollar amounts in thousands) TDR - Unpaid principal balance $5,599,567 $4,579,931 Non-TDR - Unpaid principal balance $21,528,406 $22,284,015 Total - Unpaid principal balance $27,127,973 $26,863,946 Total - Allowance $3,411,056 $3,197,414 Total allowance ratio 12.6% 11.9%
(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.
Table 5: Originations Three Months Ended Twelve Months Ended Three Months Ended ------------------ ------------------- ------------------ December 31, December 31, December 31, December 31, September 30, 2016 2015 2016 2015 2016 ---- ---- ---- ---- ---- Retained Originations (Unaudited, Dollar amounts in thousands) --------------------- Retail installment contracts $3,068,154 $3,830,337 $12,726,912 $16,692,229 $3,281,112 Average APR 15.4% 13.9% 15.7% 16.9% 14.7% Average FICO(R) (a) 604 608 598 584 612 Discount 0.3% 1.5% 0.5% 1.8% 0.1% Personal loans $190,143 $304,748 $199,424 $887,483 $ - Average APR 25.2% 24.4% 25.1% 21.2% - Discount - - - - - Leased vehicles $971,865 $1,009,526 $5,584,149 $5,132,053 $1,300,375 Capital lease receivables $1,424 $2,338 $7,401 $67,244 $2,319 ------ ------ ------ ------- ------ Total originations retained $4,231,586 $5,146,949 $18,517,886 $22,779,009 $4,583,806 Sold Originations (b) -------------------- Retail installment contracts $484,916 $1,098,674 $3,573,658 $5,419,730 $580,242 Average APR 4.4% 2.6% 4.3% 4.2% 3.2% Average FICO(R) (c) 746 758 745 743 760 --- --- --- --- --- Total originations sold $484,916 $1,098,674 $3,573,658 $5,419,730 $580,242 Total SC originations $4,716,502 $6,245,623 $22,091,544 $28,198,739 $5,164,048 Facilitated Originations ------------- Leased vehicles $ - $ - $ - $632,471 $ - Total originations $4,716,502 $6,245,623 $22,091,544 $28,831,210 $5,164,048 ========== ========== =========== =========== ==========
(a) Unpaid principal balance excluded from the weighted average FICO score is $426 million, $688 million, $2.1 billion, $3.2 billion and $492 million for the three months ended December 31, 2016 and 2015, the twelve months ended December 31, 2016 and 2015, and the three months ended September 30, 2016, respectively, as the borrowers on these loans did not have FICO scores at origination. Of these amounts, $71 million, $215 million, $364 million, $650 million, and $74 million, respectively, were commercial loans. (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 $50 million, $137 million, $451 million, $647 million and $59 million for the three months ended December 31, 2016 and 2015, the twelve months ended December 31, 2016 and 2015, and the three months ended September 30, 2016, respectively, as the borrowers on these loans did not have FICO scores at origination. Of these amounts, $8 million, $2 million, $86 million, $108 million, and zero, respectively, were commercial loans.
Table 6: Asset Sales Asset sales may include assets originated in prior periods. Three Months Ended Twelve Months Ended Three Months Ended ------------------ ------------------- ------------------ December 31, December 31, December 31, December 31, September 30, 2016 2015 2016 2015 2016 ---- ---- ---- ---- ---- (Unaudited, Dollar amounts in thousands) Retail installment contracts $1,381,036 $1,869,113 $3,694,019 $7,862,520 $793,804 Average APR 6.3% 4.5% 4.2% 7.2% 3.0% Average FICO(R) 721 766 746 704 762 Personal loans $ - $ - $869,349 $ - $ - Average APR - - 17.9% - - Leased vehicles $ - $ - $ - $1,316,958 $ - -------------------- -------------------- -------------------- ---------- -------------------- Total asset sales $1,381,036 $1,869,113 $4,563,368 $9,179,478 $793,804 ========== ========== ========== ========== ========
Table 7: Ending Portfolio Ending outstanding balance, average APR and remaining unaccreted discount of our held for investment portfolio as of December 31, 2016, and December 31, 2015, are as follows: December 31, 2016 December 31, 2015 ----------------- ----------------- (Unaudited, Dollar amounts in thousands) Retail installment contracts $27,358,147 $27,223,768 Average APR 16.4% 16.8% Discount 2.3% 2.7% Personal loans $11,839 $941 Average APR 31.5% 20.9% Receivables from dealers $69,431 $76,941 Average APR 4.9% 4.6% Leased vehicles $9,612,953 $7,326,296 Capital leases $31,872 $66,929
Table 8: Reconciliation of 2015 Non- GAAP Measures (Dollars in thousands) For the Year Ended December 31, 2015 ----------------- Charge-offs, net of recoveries on personal loans $673,294 Deduct: LOCM adjustment on personal loans (377,598) -------- Adjusted Net charge-offs on personal loans $295,696 ======== Average gross personal loans(1) $2,201,551 Net charge-off ratio on personal loans 40.8% ---- Adjusted net charge-off ratio on personal loans 17.9% ==== Charge-offs, net of recoveries on retail installment contracts acquired individually $1,795,771 Deduct: LOCM adjustment on retail installment contracts acquired individually (73,388) ------- Adjusted Net charge-offs on retail installment contracts acquired individually $1,722,383 ========== Average Gross retail installment contracts acquired individually $26,818,625 Net charge-off ratio on retail installment contracts acquired individually 6.7% --- Adjusted Net charge-off ratio on retail installment contracts acquired individually 6.4% === Total charge-offs, net of recoveries $2,497,252 Deduct: LOCM adjustment on personal loans (377,598) Deduct: LOCM adjustment on retail installment contracts acquired individually (73,388) ------- Adjusted Net charge-offs total $2,046,266 ========== Average Gross finance receivables and loans(1) $29,279,874 Net charge-off ratio 8.4% --- Adjusted Net charge-off ratio total 7.0% ===
(1) The denominators of the Personal Lending Net charge-off ratios and the aggregate Net charge-off ratios for the three and twelve months ended December 31, 2015 have been adjusted to exclude Personal Lending balances for the three months ended December 31, 2015.
Contacts: Investor Relations Media Relations Evan Black Laurie Kight 800.493.8219 214.801.6455 InvestorRelations@santanderconsumerusa.com SCMedia@santanderconsumerusa.com
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SOURCE Santander Consumer USA Holdings Inc.