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Press Release Details

Santander Consumer USA Holdings Inc. Reports First Quarter 2018 Net Income of $242 million

April 24, 2018

Total Auto Originations of $6.3 Billion Increased 18% YoY, with Increased Volume Across All Origination Channels

DALLAS, April 24, 2018 /PRNewswire/ -- Santander Consumer USA Holdings Inc. (NYSE: SC) ("SC") today announced net income for the first quarter ended March 31, 2018 ("Q1 2018") of $242 million, or $0.67 per diluted common share.

The Company has declared a cash dividend of $0.05 per share, to be paid on May 14, 2018, to shareholders of record as of the close of business on May 4, 2018.

"Our focus has been on optimizing pricing, ensuring strong credit risk management and improving dealer and customer experience," said Scott Powell, SC President and CEO, who is also CEO of Santander US. "We delivered strong financial performance in the first quarter and increased originations across all of our channels, including Chrysler loans and leases."

Juan Carlos Alvarez, Chief Financial Officer, added, "During the quarter we saw continued stabilization in credit performance with a lower net-charge-off ratio and stable delinquency ratios compared to the first quarter of last year. This led to strong financial performance in the first quarter and we remain focused on increasing volume with the appropriate risk-adjusted returns and disciplined expense management."

Q1 2018 Highlights (variances compared to the first quarter of 2017 ("Q1 2017"), unless otherwise noted):

  • Total auto originations of $6.3 billion, up 18%
    • Core retail auto loan originations of $2.3 billion, up 4%
    • Chrysler Capital loan originations of $1.9 billion, up 24%
    • Chrysler Capital lease originations of $2.1 billion, up 31%
  • Chrysler average quarterly penetration rate of 28%, up from 23% during the same quarter last year
  • Net finance and other interest income of $1.0 billion, decreased 8%
    • Net leased vehicle income of $146 million, increased 14%
  • Retail Installment Contract "RIC" gross charge-off ratio of 18.5%, up 40 basis points
  • RIC net charge-off ratio of 8.3%, down 50 basis points
  • Troubled Debt Restructuring ("TDR") balance of $6.0 billion, down from $6.3 billion as of December 31, 2017
  • Auction-plus recovery rate of 55.1%, up 400 basis points
  • Return on average assets of 2.4%, up from 1.5%
  • Common equity tier 1 ("CET1") ratio of 16.9%, up from 13.8%
  • Expense ratio of 2.4%, flat
  • Asset sales of $1.5 billion executed through the Santander flow agreement
  • $3.3 billion in asset-backed securities "ABS" offered and sold
  • Launched pilot program with Santander Bank, N. A. to facilitate the origination and servicing of primarily Chrysler loans
  • Reached agreements with AutoFi and AutoGravity expanding SC's digital partnerships in an effort to further streamline and simplify the car-buying process for consumers

Subsequent Events:

  • Completed prime auto loan portfolio conversion with a new third party increasing serviced for others balance by $1.0 billion
  • $1.0 billion in ABS offered and sold via the SDART platform

Finance receivables, loans and leases, net1 of $34.8 billion, flat compared to $34.8 billion at December 31, 2017.

Net finance and other interest income decreased 8 percent to $1.0 billion in Q1 2018 from $1.1 billion in Q1 2017, primarily driven by lower average RIC balances and an increase in benchmark rates.

Servicing fee income decreased 17 percent to $26 million in Q1 2018, from $32 million in Q1 2017, driven by lower prime originations and lower prime asset sales. SC's serviced for others portfolio of $8.7 billion as of Q1 2018 is down 21 percent from $11.0 billion the prior year quarter.

RIC delinquency ratio2 of 3.8 percent in Q1 2018 was stable compared to 3.9 percent in Q1 2017.

RIC net charge-off ratio3 improved to 8.3 percent in Q1 2018 from 8.8 percent in Q1 2017. Provision for credit losses decreased to $459 million in Q1 2018 from $635 million the prior year quarter.

Allowance ratio4 decreased 30 basis points, to 12.3 percent at the end of Q1 2018, from 12.6 percent at the end of Q4 2017.

Recorded net investment losses of $87 million in Q1 2018, compared to net investment losses of $76 million in Q1 2017. The current period losses were primarily driven by held for sale accounting for SC's personal lending portfolio5. Excluding the impact of personal lending, net investment losses totaled $28 million.

During Q1 2018 SC incurred $288 million of operating expenses, down 6 percent from $305 million in Q1 2017. SC's expense ratio of 2.4 percent for the quarter, was flat compared to 2.4 percent during the same period last year.

1 Includes Finance receivables held for investment, Finance receivables held for sale and Leased vehicles.
2Delinquency 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.
3Net charge-off ratio stated on a recorded investment basis, which is unpaid principal balance adjusted for unaccreted net discounts, subvention and origination costs.
4 Ratio for allowance for credit losses excludes end of period balances on purchased receivables portfolio of $39 million and finance receivables and personal loans held for sale of $1.6 billion.
5The current period losses were primarily driven by $59 million of lower of cost or market adjustments related to the held for sale personal lending portfolio, comprised of $106 million in customer default activity, partially offset by a $47 million decrease in market discount, consistent with typical seasonal patterns.

Conference Call Information

SC will host a conference call and webcast to discuss its Q1 2018 results and other general matters at 9:00 a.m. Eastern Time on Tuesday, April 24, 2018. The conference call will be accessible by dialing 888-394-8218 (U.S. domestic), or 323-701-0225 (international), conference ID 7441298. Please join 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 SC's corporate website at http://investors.santanderconsumerusa.com. Choose "Events" and select the information pertaining to the Q1 2018 SC Earnings Conference Call. Additionally, there will be slides accompanying the webcast. Please allow at least 15 minutes prior to the call to register, download and install any necessary software prior to the call.

For those unable to listen to the live broadcast, a replay of the call will be available on the Company's website or by dialing 844-512-2921 (U.S. domestic), or 412-317-6671 (international), conference ID 7441298, approximately two hours after the conference call. An audio webcast of the call and investor presentation will also be archived on the Investor Relations section of SC's corporate website at http://investors.santanderconsumerusa.com, under "Events".

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 control 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 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 SHUSA and 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.

Contacts:

Investor Relations

Evan Black

800.493.8219

InvestorRelations@santanderconsumerusa.com


Media Relations

Laurie Kight

214.801.6455

Media@santanderconsumerusa.com

About Santander Consumer USA Holdings Inc.

Santander Consumer USA Holdings Inc. (NYSE: SC) ("SC") is a full-service, 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 an average managed asset portfolio of approximately $48 billion (as of March 31, 2018), and is headquartered in Dallas. (www.santanderconsumerusa.com)

Santander Consumer USA Holdings Inc.
Financial Supplement
First Quarter 2018


Table of Contents




Table 1: Condensed Consolidated Balance Sheets

6


Table 2: Condensed Consolidated Statements of Income

6


Table 3: Other Financial Information

8


Table 4: Credit Quality

10


Table 5: Originations

11


Table 6: Asset Sales

12


Table 7: Ending Portfolio

13


Table 8: Reconciliation of Non-GAAP Measures

14



 

Table 1: Condensed Consolidated Balance Sheets



March 31,
 2018


December 31,

2017

Assets

(Unaudited, Dollars in thousands)

Cash and cash equivalents

$

618,809



$

527,805


Finance receivables held for sale, net

1,611,535



2,210,421


Finance receivables held for investment, net

22,587,358



22,427,769


Restricted cash

2,895,615



2,553,902


Accrued interest receivable

269,258



326,640


Leased vehicles, net

10,612,824



10,160,327


Furniture and equipment, net

65,961



69,609


Federal, state and other income taxes receivable

99,099



95,060


Related party taxes receivable

634



467


Goodwill

74,056



74,056


Intangible assets

31,088



29,734


Due from affiliates

53,408



33,270


Other assets

1,125,543



913,244


Total assets

$

40,045,188



$

39,422,304


Liabilities and Equity




Liabilities:




Notes payable — credit facilities

$

5,294,358



$

4,848,316


Notes payable — secured structured financings

22,862,607



22,557,895


Notes payable —  related party

3,148,194



3,754,223


Accrued interest payable

38,375



38,529


Accounts payable and accrued expenses

430,361



429,531


Deferred tax liabilities, net

966,444



897,121


Due to affiliates

103,012



82,382


Other liabilities

475,822



333,806


Total liabilities

$

33,319,173



$

32,941,803






Equity:




Common stock, $0.01 par value

3,610



3,605


Additional paid-in capital

1,689,996



1,681,558


Accumulated other comprehensive income, net

63,211



44,262


Retained earnings

4,969,198



4,751,076


Total stockholders' equity

$

6,726,015



$

6,480,501


Total liabilities and equity

$

40,045,188



$

39,422,304


 

Table 2: Condensed Consolidated Statements of Income



Three Months Ended
March 31,


2018


2017


(Unaudited, Dollars in thousands, except per share amounts)

Interest on finance receivables and loans

$

1,114,137



$

1,209,186


Leased vehicle income

504,278



418,233


Other finance and interest income

7,137



3,825


Total finance and other interest income

1,625,552



1,631,244


Interest expense

241,028



227,089


Leased vehicle expense

358,683



290,171


Net finance and other interest income

1,025,841



1,113,984


Provision for credit losses

458,995



635,013


Net finance and other interest income after provision for credit losses

566,846



478,971


Profit sharing

4,377



7,945


Net finance and other interest income after provision for credit losses and profit sharing

562,469



471,026


Investment losses, net

(86,520)



(76,399)


Servicing fee income

26,182



31,684


Fees, commissions, and other

85,391



100,195


Total other income

25,053



55,480


Compensation expense

122,005



136,262


Repossession expense

72,081



71,299


Other operating costs

93,826



97,517


Total operating expenses

287,912



305,078


Income before income taxes

299,610



221,428


Income tax expense

57,311



78,001


Net income

$

242,299



$

143,427






Net income per common share (basic)

$

0.67



$

0.40


Net income per common share (diluted)

$

0.67



$

0.40


Dividend paid per common share

$

0.05



$


Weighted average common shares (basic)

360,703,234



359,105,050


Weighted average common shares (diluted)

361,616,732



360,616,032


 

Table 3: Other Financial Information



Three Months Ended
March 31,



2018


2017

Ratios

(Unaudited, Dollars in thousands)


Yield on individually acquired retail installment contracts

15.2

%


15.7

%


Yield on purchased receivables portfolios

27.6

%


20.2

%


Yield on receivables from dealers

3.1

%


5.3

%


Yield on personal loans (1)

24.5

%


24.8

%


Yield on earning assets (2)

12.7

%


13.5

%


Cost of debt (3)

3.1

%


2.9

%


Net interest margin (4)

10.3

%


11.2

%


Expense ratio (5)

2.4

%


2.4

%


Return on average assets (6)

2.4

%


1.5

%


Return on average equity (7)

14.7

%


10.8

%


Net charge-off ratio on individually acquired retail installment contracts (8)

8.3

%


8.8

%


Net charge-off ratio on purchased receivables portfolios (8)

(4.2)

%


0.6

%


Net charge-off ratio on personal loans (8)

49.9

%


78.5

%


Net charge-off ratio (8)

8.3

%


8.8

%


Delinquency ratio on individually acquired retail installment contracts held for investment, end of period (9)

3.8

%


3.9

%


Delinquency ratio on personal loans, end of period (9)

11.7

%


12.0

%


Delinquency ratio on loans held for investment, end of period (9)

3.8

%


3.8

%


Allowance ratio (10)

12.3

%


12.7

%


Common stock dividend payout ratio (11)

7.5

%


%


Common Equity Tier 1 capital ratio (12)

16.9

%


13.8

%

Other Financial Information





Charge-offs, net of recoveries, on individually acquired retail installment contracts

$

537,792



$

598,933



Charge-offs, net of recoveries, on purchased receivables portfolios

(428)



353



Charge-offs, net of recoveries, on personal loans

749



3,458



Charge-offs, net of recoveries, on capital leases

306



1,314



Total charge-offs, net of recoveries

$

538,419



$

604,058



End of period delinquent principal over 60 days, individually acquired retail installment contracts held for investment

984,755



1,044,288



End of period delinquent principal over 60 days, personal loans

162,061



169,429



End of period delinquent principal over 60 days, loans held for investment

986,886



1,049,030



End of period assets covered by allowance for credit losses

26,028,935



27,188,404



End of period gross individually acquired retail installment contracts held for investment

25,986,531



27,074,856



End of period gross personal loans

1,387,713



1,414,313



End of period gross finance receivables and loans held for investment

26,046,356



27,371,719



End of period gross finance receivables, loans, and leases held for investment

37,720,946



37,447,052



Average gross individually acquired retail installment contracts held for investment

25,911,063



27,089,438



Average gross personal loans held for investment

6,010



17,610



Average gross individually acquired retail installment contracts held for investment and held for sale

26,820,166



28,200,907



Average gross purchased receivables portfolios

41,209



220,786



Average gross receivables from dealers

15,651



70,165



Average gross personal loans

1,459,308



1,488,665



Average gross capital leases

22,474



30,599



Average gross finance receivables and loans

$

28,358,808



$

30,011,122



Average gross operating leases

11,441,789



9,849,077



Average gross finance receivables, loans, and leases

39,800,597



39,860,199



Average managed assets

48,421,303



51,229,729



Average total assets

39,694,041



38,910,193



Average debt

31,208,250



31,553,342



Average total equity

6,579,416



5,325,581




(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 stock dividend payout ratio" is defined as the ratio of Dividends declared per share of common stock to Earnings per share attributable to the Company's shareholders.

(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 (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

The activity in the credit loss allowance for individually acquired retail installment contracts for the three months ended March 31, 2018 and 2017 was as follows (Unaudited, Dollar amounts in thousands):



Three Months Ended March 31,


2018


2017

Credit loss allowance — beginning of period

$

3,261,135



$

3,411,055


Provision for credit losses

458,679



629,097


Charge-offs

(1,199,021)



(1,224,697)


Recoveries

661,229



625,764


Credit loss allowance — end of period

$

3,182,022



$

3,441,219






Net charge-offs

$

537,792



$

598,933


Average unpaid principal balance

25,911,063



27,089,438


Net charge-off ratio1

8.3

%


8.8

%

 

A summary of delinquencies of our individually acquired retail installment contracts as of March 31, 2018 and December 31, 2017 is as follows (Unaudited, Dollar amounts in thousands):



March 31, 20182


December 31, 20172

Principal 30-59 days past due

$

2,234,126



8.6

%


$

2,822,686



10.9

%

Delinquent principal over 59 days3

1,087,491



4.2

%


1,541,728



5.9

%

Total delinquent contracts

$

3,321,617



12.8

%


$

4,364,414



16.9

%

 

Within the total delinquent principal above, retail installment contracts acquired individually held for investment that were placed on nonaccrual status, as of March 31, 2018 and December 31, 2017 (Unaudited, Dollar amounts in thousands):



March 31, 20182


December 31, 20172

Non-TDR

$

470,674



1.8

%


$

666,926



2.6

%

TDR

1,346,148



5.2

%


1,390,373



5.4

%

Total nonaccrual principal

$

1,816,822



7.0

%


$

2,057,299



7.9

%

 

The table below presents the Company's allowance ratio for TDR and non-TDR individually acquired retail installment contracts as of March 31, 2018 and December 31, 2017 (Unaudited, Dollar amounts in thousands):



March 31,
2018


December 31,
2017

TDR - Unpaid principal balance

$

5,998,768



$

6,261,894


TDR - Impairment

1,595,465



1,731,320


TDR allowance ratio

26.6

%


27.6

%





Non-TDR - Unpaid principal balance

$

19,987,763



$

19,681,394


Non-TDR - Allowance

1,586,557



1,529,815


Non-TDR allowance ratio

7.9

%


7.8

%





Total - Unpaid principal balance

$

25,986,531



$

25,943,288


Total - Allowance

3,182,022



3,261,135


Total allowance ratio

12.2

%


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 held-for-investment portfolio

2Percent of unpaid principal balance.

3Interest is accrued until 60 days past due in accordance with the Company's account policy for retail installment contracts.


 

Table 5: Originations

The Company's originations of individually acquired loans and leases, including revolving loans, average APR, and discount were as follows:


Three Months Ended

Three Months Ended


March 31, 2018


March 31, 2017

December 31, 2017

Retained Originations

(Unaudited, Dollar amounts in thousands)

Retail installment contracts

$

3,866,494



$

3,185,373


$

3,014,433


Average APR

16.1

%


17.0

%

14.0

%

Average FICO® (a)

611



593


631


Discount

0.3

%


0.4

%

0.2

%






Personal loans (b)

$

273,328



$

287,696


$

528,705


Average APR

26.0

%


25.3

%

25.7

%






Leased vehicles

$

2,093,604



$

1,600,659


$

1,294,256







Capital lease

$

2,398



$

1,177


$

4,640


Total originations retained

$

6,235,824



$

5,074,905


$

4,842,034







Sold Originations (c)





Retail installment contracts

$

386,956



$

601,205


$


Average APR

6.8

%


5.8

%

%

Average FICO® (d)

732



727



Total originations sold

$

386,956



$

601,205


$







Total originations

$

6,622,780



$

5,676,110


$

4,842,034




(a)     

Unpaid principal balance excluded from the weighted average FICO score is $461 million, $443 million, and $372 million for the three months ended March 31, 2018 and 2017, and the three months ended December 31, 2017, respectively, as the borrowers on these loans did not have FICO scores at origination. Of these amounts, $54 million, $40 million, and $68 million, respectively, were commercial loans.

(b)    

Effective as of three months ended December 31, 2017, the Company revised its approach to define origination volumes for Personal Loans to include new originations, gross of paydowns and charge-offs, related to customers who took additional advances on existing accounts (including capitalized late fees, interest and other charges), and newly opened accounts. In the prior periods, the Company reported net balance increases on personal loans as origination volume. Included in the total origination volume is $17 million , $23 million and $132 million for the three months ended March 31, 2018 and 2017, and the three months ended December 31, 2017, respectively, related to newly opened accounts.

(c)     

Only includes assets both originated and sold in the period. Total asset sales for the period are shown in Table 6.

(d)    

Unpaid principal balance excluded from the weighted average FICO score is $32 million, $80 million, and zero for the three months ended March 31, 2018 and 2017, and the three months ended December 31, 2017, respectively, as the borrowers on these loans did not have FICO scores at origination. Of these amounts, $20 million, $31 million, and zero, respectively, were commercial loans.

Beginning in 2018, the Company agreed to provide SBNA with origination support services in connection with the  processing, underwriting and purchase of retail loans, primarily from Chrysler dealers. In addition, the Company agreed to perform the servicing for any loans originated on SBNA's behalf.  During the three months ended March 31, 2018, the Company facilitated the purchase of $24 million of retail installment contacts.

Table 6: Asset Sales

Asset sales may include assets originated in prior periods.


Three Months Ended

Three Months Ended


March 31, 2018


March 31, 2017

December 31, 2017


(Unaudited, Dollar amounts in thousands)

Retail installment contracts

$

1,475,253



$

930,590


$


Average APR

6.5

%


5.9

%

%

Average FICO®

727



726








Total asset sales

$

1,475,253



$

930,590


$



 

Table 7: Ending Portfolio

Ending outstanding balance, average APR and remaining unaccreted dealer discount of our held for investment portfolio as of March 31, 2018, and December 31, 2017, are as follows:



March 31, 2018


December 31, 2017


(Unaudited, Dollar amounts in thousands)

Retail installment contracts

$

26,025,703



$

25,986,532


Average APR

16.6

%


16.5

%

Discount

1.4

%


1.5

%





Personal loans

$

5,158



$

6,887


Average APR

31.8

%


31.8

%





Receivables from dealers

$

15,495



$

15,787


Average APR

4.2

%


4.2

%





Leased vehicles

$

11,652,841



$

11,175,602






Capital leases

$

21,750



$

22,857



 

Table 8: Reconciliation of Non-GAAP Measures



March 31, 2018


March 31, 2017


(Unaudited, Dollar amounts in thousands)

Total equity

$

6,726,015



$

5,418,998


  Deduct: Goodwill, intangibles, and other assets, net of deferred tax liabilities

169,870



182,156


  Deduct: Accumulated other comprehensive income (loss), net

63,211



35,504


Tier 1 common capital

$

6,492,934



$

5,201,338


Risk weighted assets (a)

$

38,517,988



$

37,799,513


Common Equity Tier 1 capital ratio (b)

16.9

%


13.8

%



(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 total Risk weighted assets.

(b) 

CET1 is calculated under Basel III regulations required as of January 1, 2015. The fully phased-in capital ratios are non-GAAP financial measures.

 

Cision View original content:http://www.prnewswire.com/news-releases/santander-consumer-usa-holdings-inc-reports-first-quarter-2018-net-income-of-242-million-300635051.html

SOURCE Santander Consumer USA Holdings Inc.