(2) Average indebtedness represents the average outstanding borrowings under the Line. Average cost of borrowed funds represents interest expense as a percentage of average indebtedness.
(3) Interest and fee income on finance receivables does not include revenue generated by Nicholas Data Services, Inc., ("NDS") the wholly-owned software subsidiary of Nicholas Financial, Inc.
(4) Weighted average contractual rate represents the weighted average annual percentage rate (APR) of all Contracts purchased and direct loans originated during the period.
(5) Gross portfolio yield represents interest and fee income on finance receivables as a percentage of average finance receivables, net of unearned interest. Net portfolio yield represents interest and fee income on finance receivables minus (a) interest expense and (b) the provision for credit losses as a percentage of average finance receivables, net of unearned interest.(6) Administrative expenses included in the calculation above are net of administrative expenses associated with NDS which approximated $58,000 and $52,000 during the three-month periods ended June 30, 2010 and 2009, respectively. (7) Pre-tax yield represents net portfolio yield minus operating expenses as a percentage of average finance receivables, net of unearned interest. (8) Write-off to liquidation percentage is defined as net charge-offs divided by liquidation. Liquidation is defined as beginning receivable balance plus current period purchases minus voids and refinances minus ending receivable balance. (9) Net charge-off percentage represents net charge-offs divided by average finance receivables, net of unearned interest, outstanding during the period. The following tables present certain information regarding the delinquency rates experienced by the Company with respect to Contracts and under its direct loan program:
|Contracts||Gross Balance Outstanding||30 – 59 days||60 – 89 days||90 + days||Total|
|Direct Loans||Gross Balance Outstanding||30 – 59 days||60 – 89 days||90 + days||Total|
|Three months ended June 30,|
|Weighted average term (months)||49||49|
|Average loan||$ 9,860||$ 9,444|
|Number of contracts||3,608||3,186|
CONTACT: Nicholas Financial, Inc. Ralph Finkenbrink, Sr. Vice President, CFO 727-726-0763 www.nicholasfinancial.com