Slide 1: 4Q14 & FY 2014 Earnings Presentation
4Q14 & FY 2014 Earnings Presentation Three Months and Year Ended December 31, 2014 Springleaf Holdings, Inc. (LEAF) March 12, 2015
Slide 2: Important Information
Important Information The following pages are part of a presentation by Springleaf Holdings, Inc. (the "Company") in connection with reporting quarterly financial results and are intended to be viewed as part of that presentation. No representation is made that the information in these pages is comp
Slide 3: 4Q14 and FY 2014 Highlights
4Q14 and FY 2014 Highlights ($ in thousands) 4Q14 3Q14 4Q13 FY 2014 FY 2013 Consumer & Insurance(1) $63,522 $62,615 $41,015 $234,993 $205,324 Acquisitions & Servicing (2) 39,487 38,760 35,831 142,862 109,095 Pretax Core Earnings(3) $103,009 $101,375 $76,846 $377,855 $314,419 Income Taxes (4) (38,112
Slide 4: Branch Receivables Growth and Scalability
Branch Receivables Growth and Scalability Branch consumer receivables increased 20%+ year‐over‐year – Origination volume of $3.6 billion, versus $3.3 billion in 2013; ~919K customer accounts, up 11% y‐o‐y – Continuing to drive scale with 233 branches now over $5 million in receivables versus 113 a
Slide 5: Consumer Loan Performance
Consumer Loan Performance Stable yield and net losses Net charge‐offs and delinquencies exhibited normal seasonal trends Consumer Credit Performance Remains Strong(1) 30.0% 27.0% 27.0% 26.3% 27.0% 25.8% 24.1% 25.0% 20.0% 15.0% 22.1% 21.3% 22.3% 22.0% 20.5% 22.0% 10.0% 5.0% 3.6% 3.8% 4.9% 5.0% 4.
Slide 6: 4Q14 and FY 2014 Summary Financial Results
4Q14 and FY 2014 Summary Financial Results ($ in thousands) 4Q14 3Q14 4Q13 FY 2014 FY 2013 Consumer & Insurance(1) $63,522 $62,615 $41,015 $234,993 $205,324 Acquisitions & Servicing (2) 39,487 38,760 35,831 142,862 109,095 Pretax Core Earnings(3) $103,009 $101,375 $76,846 $377,855 $314,419 Income Ta
Slide 7: 2015 Guidance
2015 Guidance Core Consumer Operations(1) FY 2014A FY 2015E Range Consumer Net Finance Receivables $3.81bn $4.50bn — $4.75bn Consumer Yield 26.99% 26.00% — 26.50% Consumer Risk Adjusted Yield(2) 22.05% 20.50% — 21.50% Acquisitions & Servicing Pretax Income(3) $143mm $100mm — $120mm (1) Net Finance R
Slide 8: Appendix
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Slide 9: Acquisitions and Servicing
Acquisitions and Servicing Pretax income for 4Q14 of $39 million versus $36 million in the prior year quarter(1) Charge‐offs continue to decline; enhancing slowdown of portfolio run‐off In October 2014, SpringCastle issued $2.6 billion of asset‐backed notes in a private securitization – LEAF p
Slide 10: Growth in Average Receivables per Branch
Growth in Average Receivables per Branch Branches managing over $5 million of receivables have more than doubled since YE 2013 Branches managing under $3 million of receivables have decreased 67% since YE 2013 Additional room for growth with minimal incremental investment required Branch Distr
Slide 11: Liquidity and Funding at 12/31/14
Liquidity and Funding at 12/31/14 Strong and stable liquidity position – $3.4 billion of cash and highly liquid investment securities; $1.2 billion committed undrawn funding capacity Weighted average cost of funds of 5.35% in 2014, down 13 bps y‐o‐y (1,2) Significantly reduced leverage with th
Slide 12: Financial Supplement
. Financial Supplement Financial
Slide 13: Consolidated Balance Sheet (Push Down Accounting)
Consolidated Balance Sheet (Push Down Accounting) (unaudited, in thousands) 12/31/14 12/31/13 1 Cash and Cash Equivalents $878,826 $431,409 2 Investment Securities 2,934,749 582,090 3 Net Finance Receivables: 4 Personal Loans & Retail Sales Finance 3,878,877 3,270,615 5 SpringCastle Portfolio 1,979,
Slide 14: Consolidated Income Statement (Push Down Accounting)
Consolidated Income Statement (Push Down Accounting) (unaudited, in thousands, except per share statistics) 4Q14 3Q14 4Q13 FY 2014 FY 2013 1 Finance Charges $406,923 $435,445 $576,184 $1,920,513 $2,153,745 2 Finance Receivables Held for Sale Originated as Held for Investment 6,344 47,679 333 61,265
Slide 15: Core Earnings (Non-GAAP)
Core Earnings (Non‐GAAP) (unaudited, in thousands) 4Q14 3Q14 4Q13 FY 2014 FY 2013 1 Interest Income $385,360 $367,171 $360,060 $1,465,593 $1,211,036 2 Interest Expense (65,591) (58,151) (62,519) (245,674) (220,638) 3 Provision for Finance Receivable Losses (84,034) (84,419) (119,641) (354,953) (250,
Slide 16: Core: Consumer & Insurance Segments
Core: Consumer & Insurance Segments (unaudited, in thousands) 4Q14 3Q14 4Q13 FY 2014 FY 2013 1 Interest Income $249,947 $236,190 $202,084 $916,228 $721,772 2 Interest Expense (41,871) (40,466) (37,890) (163,968) (149,000) 3 Provision for Finance Receivable Losses (53,139) (56,087) (64,984) (202,377)
Slide 17: Core: Acquisitions & Servicing Segment
Core: Acquisitions & Servicing Segment (unaudited, in thousands) 4Q14 3Q14 4Q13 FY 2014 FY 2013 1 Interest Income $135,413 $130,981 $157,976 $549,365 $489,264 2 Interest Expense (23,720) (17,685) (24,629) (81,706) (71,638) 3 Provision for Finance Receivable Losses (30,895) (28,332) (54,657) (152,576
Slide 18: Non-Core: Real Estate Segment
Non‐Core: Real Estate Segment (unaudited, in thousands) 4Q14 3Q14 4Q13 FY 2014 FY 2013 1 Finance Charges $16,238 $53,568 $162,746 $354,359 $698,026 2 Finance Receivables Held for Sale Originated as Held for Investment 3,859 41,468 0 52,457 0 3 Total Interest Income 20,097 95,036 162,746 406,816 698,
Slide 19: Non-Core: Other
Non‐Core: Other (unaudited, in thousands) 4Q14 3Q14 4Q13 FY 2014 FY 2013 1 Interest Income $3,164 $3,850 $7,735 $16,429 $45,366 2 Interest Expense (1,571) (1,837) (2,806) (7,381) (14,970) 3 Provision for Finance Receivable Losses 55 (1,290) (3,185) (6,502) 200 4 Net Interest Income after Provision 1
Slide 20: Reconciliation – Push-Down Accounting to Historical / Pretax Core Earnings
Reconciliation – Push‐Down Accounting to Historical / Pretax Core Earnings (unaudited, in thousands) 4Q14 3Q14 4Q13 FY 2014 FY 2013 1 1 Push‐Down Accounting Pretax Income (Loss) Attributable to Springleaf ($59,375) $661,072 $12,542 $801,682 ($35,486) 2 Finance Charges (2,161) (10,856) (45,976) (84,1