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Santander Consumer USA Holdings Inc. Reports Third Quarter 2019 Results

10/30/19
Net Income of $233 million, Driven by Strong Originations of $8.4 billion, Up 11% Versus Q3'18

DALLAS, Oct. 30, 2019 /PRNewswire/ -- Santander Consumer USA Holdings Inc. (NYSE: SC) ("SC" or the "Company") today announced net income for the third quarter ended September 30, 2019 ("Q3 2019") of $233 million, or $0.67 per diluted common share.

The Company has declared a cash dividend of $0.22 per share, to be paid on November 22, 2019, to shareholders of record as of the close of business on November 12, 2019.

Management Quotes

"We had strong results in the third quarter, driven by strong originations" said Scott Powell, SC President and CEO, also CEO of Santander US. "We have been working throughout 2019 to deepen our relationship with Fiat Chrysler and with our other dealer customers. We've made tangible improvements to operations and customer experience, and the results demonstrate that."

Fahmi Karam, SC Chief Financial Officer, added, "We are pleased with our third quarter performance and our ability to continue the momentum from the first half of the year. Credit performance remains stable as we enter the seasonally weaker part of the year.  We remain focused on generating assets with strong risk-adjusted returns, managing operating expenses as we grow and optimizing our capital base by returning capital to our shareholders."

Q3 2019 Highlights (variances compared to the third quarter of 2018 ("Q3 2018"), unless otherwise noted):

  • Total auto originations of $8.4 billion, up 11%
    • Core retail auto loan originations of $2.6 billion, up 11%
    • Chrysler Capital loan originations of $3.6 billion, up 52%
    • Chrysler Capital lease originations of $2.2 billion, down 23%
    • Chrysler average quarterly penetration rate of 36%, up from 31%
    • Santander Bank, N.A. program originations of $2.1 billion
  • Net finance and other interest income of $1.2 billion, up 5%
  • 30-59 delinquency ratio of 9.5%, down 100 basis points
  • 59-plus delinquency ratio of 4.7%, down 80 basis points
  • Retail Installment Contract ("RIC") gross charge-off ratio of 18.3%, up 70 basis points
  • Recovery rate of 55.9%, up 590 basis points
  • RIC net charge-off ratio of 8.1%, down 70 basis points
  • Troubled Debt Restructuring ("TDR") balance of $4.2 billion, down 27%
  • Return on average assets of 2.0%, down from 2.2%
  • $3.5 billion in asset-backed securities "ABS"
  • Expense ratio of 2.3%, up from 2.1%
  • Common equity tier 1 ("CET1") ratio of 15.4%, down from 16.4% as of September 30, 2018

Net finance and other interest income1 increased 5 percent to $1.20 billion in Q3 2019 from $1.14 billion in Q3 2018, driven by increased loan and lease balances.

SC's serviced for others portfolio increased 9 percent to $10.0 billion as of Q3 2019 versus Q3 2018. Servicing fee income decreased 19 percent to $21 million in Q3 2019, from $26 million in Q3 2018, driven by the change in the composition of those balances. Fees, commissions and other increased 14 percent to $96 million in Q3 2019, from $85 million in Q3 2018, driven by origination fees from the SBNA program.

The Personal Lending portfolio recorded net investment losses of $87 million in Q3 2019, flat compared Q3 2018, primarily driven by lower of cost or market adjustments which included $102 million in customer default activity, partially offset by a $15 million decrease in market discount, consistent with typical seasonal patterns.

During Q3 2019 operating expenses were $329 million, up 21 percent from $272 million in Q3 2018, driven by one-time legal expenses during the quarter. SC's expense ratio increased to 2.3 percent during the quarter, compared to 2.1 percent during the same period last year.

1Includes 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 59 days, to end of period gross balance of the respective portfolio, excludes   finance 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.
4Ratio for allowance for credit losses excludes end of period balances on purchased receivables portfolio of $23 million and finance receivables and personal loans held for sale of $0.9 billion.

Conference Call Information

SC will host a conference call and webcast to discuss its Q3 2019 results and other general matters at 9:00 a.m. Eastern Time on Wednesday, October 30, 2019. The conference call will be accessible by dialing 866-548-4713 (U.S. domestic), or 323-794-2093 (international), conference ID 7619760. 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 Q3 2019 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 7619760, 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 FCA 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.

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, had an average managed asset portfolio of approximately $57 billion (as of September 30, 2019), 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
MediaRelations@santander.us

Annette Rogers
469.563.4157
Media@santanderconsumerusa.com

Santander Consumer USA Holdings Inc.

Financial Supplement

Third Quarter 2019


Table of Contents


Table 1: Condensed Consolidated Balance Sheets

5


Table 2: Condensed Consolidated Statements of Income

6


Table 3: Other Financial Information

7


Table 4: Credit Quality

9


Table 5: Originations

10


Table 6: Asset Sales

11


Table 7: Ending Portfolio

12


Table 8: Reconciliation of Non-GAAP Measures

13


 

Table 1: Condensed Consolidated Balance Sheets



September 30,
2019


December 31,
2018

Assets

(Unaudited, Dollars in thousands)

Cash and cash equivalents

$

38,589



$

148,436


Finance receivables held for sale, net

925,611



1,068,757


Finance receivables held for investment, net

26,500,359



25,117,454


Restricted cash

2,245,526



2,102,048


Accrued interest receivable

282,311



303,686


Leased vehicles, net

16,037,817



13,978,855


Furniture and equipment, net

56,020



61,280


Federal, state and other income taxes receivable

82,151



97,087


Related party taxes receivable

4,732



734


Goodwill

74,056



74,056


Intangible assets

36,627



35,195


Due from affiliates

16,003



8,920


Other assets

979,213



963,347


Total assets

$

47,279,015



$

43,959,855


Liabilities and Equity




Liabilities:




Notes payable — credit facilities

$

5,460,581



$

4,478,214


Notes payable — secured structured financings

26,919,490



26,901,530


Notes payable —  related party

5,252,571



3,503,293


Accrued interest payable

47,862



49,370


Accounts payable and accrued expenses

392,103



422,951


Deferred tax liabilities, net

1,403,635



1,155,883


Due to affiliates

81,626



63,219


Other liabilities

375,945



367,037


Total liabilities

$

39,933,813



$

36,941,497






Equity:




Common stock, $0.01 par value

3,429



3,523


Additional paid-in capital

1,276,314



1,515,572


Accumulated other comprehensive income, net

(31,836)



33,515


Retained earnings

6,097,295



5,465,748


Total stockholders' equity

$

7,345,202



$

7,018,358


Total liabilities and equity

$

47,279,015



$

43,959,855


 

Table 2: Condensed Consolidated Statements of Income



Three Months Ended September 30,


Nine Months Ended September 30, 2019


2019


2018


2019


2018


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

Interest on finance receivables and loans

$

1,273,022



$

1,227,129



$

3,787,700



$

3,606,675


Leased vehicle income

706,302



583,097



2,032,098



1,625,272


Other finance and interest income

9,926



8,522



31,610



24,153


Total finance and other interest income

1,989,250



1,818,748



5,851,408



5,256,100


Interest expense

335,212



285,583



999,633



800,564


Leased vehicle expense

456,193



389,076



1,344,654



1,108,094


Net finance and other interest income

1,197,845



1,144,089



3,507,121



3,347,442


Provision for credit losses

566,849



597,914



1,548,404



1,514,799


Net finance and other interest income after provision for credit losses

630,996



546,175



1,958,717



1,832,643


Profit sharing

18,125



1,652



38,438



18,882


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

612,871



544,523



1,920,279



1,813,761


Investment losses, net

(86,397)



(86,320)



(238,281)



(255,474)


Servicing fee income

21,447



26,409



70,255



80,129


Fees, commissions, and other

96,243



84,552



280,815



247,423


Total other income

31,293



24,641



112,789



72,078


Compensation expense

132,271



119,722



382,843



360,325


Repossession expense

62,937



62,189



203,496



197,930


Other operating costs

134,262



90,431



314,737



278,949


Total operating expenses

329,470



272,342



901,076



837,204


Income before income taxes

314,694



296,822



1,131,992



1,048,635


Income tax expense

82,156



64,874



283,684



237,047


Net income

$

232,538



$

231,948



$

848,308



$

811,588










Net income per common share (basic)

$

0.67



$

0.64



$

2.43



$

2.25


Net income per common share (diluted)

$

0.67



$

0.64



$

2.42



$

2.24


Weighted average common shares (basic)

345,469,657



360,725,330



349,341,627



360,898,973


Weighted average common shares (diluted)

345,956,043



361,445,223



349,855,822



361,714,123


 

Table 3: Other Financial Information



Three Months Ended
September 30,


Nine Months Ended
September 30,

Ratios (Unaudited, Dollars in thousands)

2019


2018


2019


2018

Yield on individually acquired retail installment contracts

16.1

%


16.3

%


16.1

%


16.1

%

Yield on purchased receivables portfolios

14.0

%


23.2

%


16.0

%


25.1

%

Yield on receivables from dealers

0.7

%


3.4

%


2.0

%


3.3

%

Yield on personal loans, held for sale (1)

26.3

%


24.9

%


26.2

%


24.6

%

Yield on earning assets (2)

12.8

%


13.3

%


12.9

%


13.3

%

Cost of debt (3)

3.6

%


3.5

%


3.7

%


3.3

%

Net interest margin (4)

10.0

%


10.6

%


10.0

%


10.7

%

Expense ratio (5)

2.3

%


2.1

%


2.2

%


2.2

%

Return on average assets (6)

2.0

%


2.2

%


2.5

%


2.6

%

Return on average equity (7)

12.7

%


13.1

%


15.7

%


15.8

%

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

8.1

%


8.8

%


7.7

%


7.7

%

Net charge-off ratio (8)

8.1

%


8.8

%


7.7

%


7.7

%

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

4.7

%


5.5

%


4.7

%


5.5

%

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

4.7

%


5.5

%


4.7

%


5.5

%

Allowance ratio (10)

10.5

%


11.7

%


10.5

%


11.7

%

Common stock dividend payout ratio (11)

32.7

%


31.1

%


25.5

%


13.3

%

Common Equity Tier 1 capital ratio (12)

15.4

%


16.4

%


15.4

%


16.4

%

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

$

592,912



$

613,210



$

1,670,543



$

1,560,144


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



(331)





(1,324)


Charge-offs, net of recoveries, on personal loans

(34)



84



1,880



1,348


Charge-offs, net of recoveries, on finance leases

15



227



362



939


Total charge-offs, net of recoveries

$

592,893



$

613,190



$

1,672,785



$

1,561,107


End of period delinquent principal over 59 days, retail installment contracts held for investment

1,394,074



1,560,736



1,394,074



1,560,736


End of period delinquent principal over 59 days, personal loans

176,500



177,916



176,500



177,916


End of period delinquent principal over 59 days, loans held for investment

1,394,074



1,562,486



1,394,074



1,562,486


End of period assets covered by allowance for credit losses

29,636,174



28,281,165



29,636,174



28,281,165


End of period gross retail installment contracts held for investment

29,597,897



28,243,007



29,597,897



28,243,007


End of period gross personal loans held for sale

1,322,301



1,336,664



1,322,301



1,336,664


End of period gross finance receivables and loans held for investment

29,633,950



28,293,857



29,633,950



28,293,857


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

46,874,858



42,700,297



46,874,858



42,700,297


Average gross retail installment contracts held for investment

29,316,997



27,919,080



28,998,827



26,928,172


Average gross personal loans held for investment



3,623



1,266



4,761


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

$

29,450,778



$

28,060,492



$

29,035,278



$

27,615,084


Average gross purchased receivables portfolios

24,297



34,059



26,781



37,545


Average gross receivables from dealers

12,924



15,070



13,226



15,363


Average gross personal loans held for sale

1,343,098



1,350,852



1,398,045



1,398,555


Average gross finance leases

23,977



20,034



21,960



21,183


Average gross finance receivables and loans

$

30,855,074



$

29,480,507



$

30,495,290



$

29,087,730


Average gross operating leases

16,902,932



13,607,010



16,135,606



12,458,508


Average gross finance receivables, loans, and leases

47,758,006



43,087,517



46,630,896



41,546,238


Average managed assets

57,379,308



52,472,270



55,830,429



50,594,560


Average total assets

46,915,965



41,985,751



45,696,088



40,900,603


Average debt

37,276,505



32,706,778



36,234,826



32,002,094


Average total equity

7,335,898



7,105,340



7,215,250



6,845,767




(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.

(9)

"Delinquency ratio" is defined as the ratio of End of period Delinquent principal over 59 days to End of period gross balance of the respective portfolio, excludes finance 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 and nine months ended September 30, 2019 and 2018 was as follows (Unaudited, Dollar amounts in thousands):


Three Months Ended September 30, 2019


Three Months Ended September 30, 2018



Retail Installment Contracts Acquired
Individually


Retail Installment Contracts Acquired
Individually


Allowance for Credit Loss

Non-TDR


TDR


Non-TDR


TDR




Balance — beginning of period

$

1,961,893



$

1,156,303



$

1,651,714



$

1,664,222



Provision for credit losses *

484,626



102,494



380,496



217,447



Charge-offs

(962,573)



(381,490)



(701,393)



(524,429)



Recoveries

567,846



183,305



410,045



202,568



Balance — end of period

$

2,051,792



$

1,060,612



$

1,740,862



$

1,559,808




* Includes impact for individually acquired retail installment contracts transferred back from held for sale

 


Nine Months Ended September 30, 2019


Nine Months Ended September 30, 2018



Retail Installment Contracts Acquired
Individually


Retail Installment Contracts Acquired
Individually


Allowance for Credit Loss

Non-TDR


TDR


Non-TDR


TDR




Balance — beginning of period

$

1,819,360



$

1,416,743



$

1,540,315



$

1,804,132



Provision for credit losses

$

1,279,931



$

266,913



930,595



585,771



Charge-offs

$

(2,685,931)



$

(1,217,650)



(1,962,220)



(1,484,482)



Recoveries

$

1,638,432



$

594,606



1,232,172



654,387



Balance — end of period

$

2,051,792



$

1,060,612



$

1,740,862



$

1,559,808



A summary of delinquencies of our individually acquired retail installment contracts as of September 30, 2019 and December 31, 2018 is as follows (Unaudited, Dollar amounts in thousands):

Delinquent Principal

September 30, 2019


December 31, 2018

Principal 30-59 days past due

$

2,806,640



9.5

%


$

3,118,869



11.0

%

Delinquent principal over 59 days

1,392,955



4.7

%


1,712,243



6.0

%

Total delinquent contracts

$

4,199,595



14.2

%


$

4,831,112



17.0

%

The retail installment contracts acquired individually held for investment that were placed on nonaccrual status, as of September 30, 2019 and December 31, 2018 (Unaudited, Dollar amounts in thousands):

Nonaccrual Principal

September 30, 2019


December 31, 2018

Non-TDR

$

927,027



3.1

%


$

834,921



2.9

%

TDR

511,990



1.7

%


733,218



2.6

%

Total nonaccrual principal

$

1,439,017



4.8

%


$

1,568,139



5.5

%

The table below presents the Company's allowance ratio for TDR and non-TDR individually acquired retail installment contracts as of September 30, 2019 and December 31, 2018 (Unaudited, Dollar amounts in thousands):

Allowance Ratios

September 30,
2019


December 31,
2018

TDR - Unpaid principal balance

$

4,221,473



$

5,378,603


TDR - Impairment

1,060,612



1,416,743


TDR - Allowance ratio

25.1

%


26.3

%





Non-TDR - Unpaid principal balance

$

25,353,223



$

23,054,157


Non-TDR - Allowance

2,051,792



1,819,360


Non-TDR Allowance ratio

8.1

%


7.9

%





Total - Unpaid principal balance

$

29,574,696



$

28,432,760


Total - Allowance

3,112,404



3,236,103


Total - Allowance ratio

10.5

%


11.4

%

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


Nine Months Ended


Three Months
Ended


September 30,
2019


September 30,
2018


September 30,
2019


September 30,
2018


June 30, 2019

Retained Originations

(Unaudited, Dollar amounts in thousands)

Retail installment contracts

$

4,080,028



$

4,014,963



$

12,056,003



$

11,756,642



$

3,949,648


Average APR

16.0

%


17.3

%


16.5

%


17.4

%


16.2

%

Average FICO® (a)

599



596



598



595



601


Discount

(0.7)

%


0.3

%


(0.4)

%


0.3

%


(0.5)

%











Personal loans

322,335



325,120



954,105



938,536



$

343,214


Average APR

29.7

%


28.8

%


29.8

%


29.4

%


29.7

%











Leased vehicles

2,225,117



2,890,841



6,708,827



7,616,498



$

2,520,130












Finance lease

4,859



2,633



12,989



$

7,088



$

4,822


Total originations retained

$

6,632,339



$

7,233,557



$

19,731,924



$

20,318,764



$

6,817,814












Sold Originations (b)










Retail installment contracts

$



$



$



$

1,826,411



$


Average APR

%


%


%


7.3

%


%

Average FICO® (b)







727




Total originations sold

$



$



$



$

1,826,411



$












Total originations (excluding SBNA Originations Program)

$

6,632,339



$

7,233,557



$

19,731,924



$

22,145,175



$

6,817,814




(a)

Unpaid principal balance excluded from the weighted average FICO score is $440 million, $744 million, $1.4 billion, $1.5 billion, and $448 million for the three months ended September 30, 2019 and 2018, the nine months ended September 30, 2019 and 2018 and the three months ended June 30, 2019 respectively, as the borrowers on these loans did not have FICO scores at origination. Of these amounts, $154 million, $80 million, $401 million, $147 million and $141 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. Unpaid principal balance excluded from the weighted average FICO score is zero, $26 million,  zero,  $144 million  and zero for the three months ended September 30, 2019 and 2018,the nine months ended September 30, 2019  and 2018, and the three months ended June 30, 2019, respectively, as the borrowers on these loans did not have FICO scores at origination. Of these amounts, zero and $76 million, respectively, were commercial loans.

SBNA Originations Program
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. The Company facilitated the purchase of $2.1 billion and $5 billion of retail installment contacts during the three and nine months ended September 30, 2019, respectively.

Table 6: Asset Sales



Three Months Ended


Nine Months Ended


September 30, 2019


September 30, 2018


September 30, 2019


September 30, 2018


(Unaudited, Dollar amounts in thousands)

Retail installment contracts

$



$

274,609



$



$

2,905,922


Average APR

%


7.5

%


%


7.2

%

Average FICO®



727





726










Total asset sales

$



$

274,609



$



$

2,905,922


There were no asset sales during 2019, since it has been replaced with SBNA originations program.

Table 7: Ending Portfolio

Ending outstanding balance, average APR and remaining unaccreted net discount of our held for investment portfolio as of September 30, 2019, and December 31, 2018, are as follows:


September 30, 2019


December 31, 2018


(Unaudited, Dollar amounts in thousands)

Retail installment contracts

$

29,597,907



$

28,463,236


Average APR

16.5

%


16.7

%

Discount

0.4

%


0.8

%





Personal loans (a)

$



$

2,637


Average APR

%


31.7

%





Receivables from dealers

$

12,841



$

14,710


Average APR

4.0

%


4.1

%





Leased vehicles

$

17,215,473



$

15,219,313






Finance leases

$

25,435



$

19,344




(a)

The remaining balance of personal loans, held for investment, was charged off during the quarter ended June 30, 2019.

 

Table 8: Reconciliation of Non-GAAP Measures



September 30,

2019


September 30,

2018


(Unaudited, Dollar amounts in thousands)

Total equity

$

7,345,202



$

7,141,215


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

150,644



162,643


  Deduct: Accumulated other comprehensive income (loss), net

(31,836)



56,601


Tier 1 common capital

$

7,226,394



$

6,921,971


Risk weighted assets (a)

$

46,870,019



$

42,256,218


Common Equity Tier 1 capital ratio (b)

15.4

%


16.4

%



(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-third-quarter-2019-results-300947789.html

SOURCE Santander Consumer USA Holdings Inc.

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