Slide 1: 3Q 2015 Earnings Presentation
3Q 2015 Earnings Presentation Three Months Ended September 30, 2015 Springleaf Holdings, Inc. (LEAF) November 9, 2015 Update as of: 11/9/2015 12:58 PM
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: Important Information – Non-GAAP Financial Measures
Important Information Non‐GAAP Financial Measures We present core earnings as a “non‐GAAP financial measure” in this presentation. This measure is derived on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”
Slide 4: 3Q15 Key Highlights
3Q15 Key Highlights OneMain Transferred $608 million of branch receivables to held for sale Acquisition Actively engaged in discussions with the DOJ and certain States to obtain antitrust clearance Update Core Earnings of $66 million and Core earnings per share of $0.50(1) 3Q15 GAAP Loss of
Slide 5: Branch Receivables Growth and Scalability
Branch Receivables Growth and Scalability Branch consumer receivables(1) of $4.7 billion increased by 30% year‐over‐year Consumer Receivables Per Branch ($ mm)(2) 3Q15 Origination Statistics(3) Track Record of Growth Personal Loan Auto Loan (4) $6.0 Unsecured Hard Secured $5.7(1) $5.5 Avg. Loan Si
Slide 6: Consumer Loan Performance
Consumer Loan Performance Consumer Credit Performance Remains Strong(1) 30.00% 26.99% 27.02% 26.95% 26.88% 26.50% 25.84% 25.97% 25.00% 24.10% 20.00% 22.05% 22.34% 21.99% 21.24% 21.64% 15.00% 22.03% 21.67% 20.46% 10.00% 5.00% 4.94% 4.68% 4.96% 5.64% 4.86% 4.30% 3.64% 3.81% 0.00% 2012 2013 (2) 2014 3Q
Slide 7: 3Q15 Financial Highlights
3Q15 Financial Highlights ($ and shares in millions) 3Q15 2Q15 3Q14 Consumer & Insurance $77 $76 $63 Acquisitions & Servicing (1) 28 31 38 Pretax Core Earnings(2) $105 $107 $101 Income Taxes (3) (39) (40) (37) Core Earnings(2) $66 $67 $64 Net Income (Loss) Attributable to Springleaf ($11) ($12) $427
Slide 8: 2015 Guidance
2015 Guidance Core Consumer Operations FY 2015E Range(1) 3Q15 YTDA(2) Guidance as of 6/30/15 Guidance as of 9/30/15 Consumer Net Finance Receivables(3) $4.65bn $4.70bn — $4.85bn $4.85bn — $4.95bn Consumer Yield 26.43% 26.00% — 26.50% 26.00% — 26.25% Consumer Net Charge‐off Ratio 4.90% 5.00% — 5.50%
Slide 9: Appendix and Financial Supplement
Appendix and Financial Supplement 9
Slide 10: Acquisitions and Servicing
Acquisitions and Servicing Pretax income for 3Q15 of $28 million versus $38 million in the prior year quarter(1) Solid credit performance with stable charge‐off rate In March 2015, sold $232 and $131 million of the Class C and D SpringCastle 2014‐A notes which had been held as an investment fo
Slide 11: Consolidated Balance Sheets (Push Down Accounting)
Consolidated Balance Sheets (Push Down Accounting) (unaudited, in millions) 9/30/15 12/31/14 1 Cash and Cash Equivalents $3,865 $879 2 Investment Securities 1,742 2,935 3 Personal Loans & Retail Sales Finance 4,088 3,879 4 SpringCastle Portfolio 1,667 1,979 5 Real Estate Loans 547 625 6 Total Net Fi
Slide 12: Consolidated Income Statements (Push Down Accounting)
Consolidated Income Statements (Push Down Accounting) (unaudited, in millions, except per share statistics) 3Q15 2Q15 3Q14 1 Finance Charges $424 $408 $436 2 Finance Receivables Held for Sale Originated as Held for Investment 4 5 48 3 Total Interest Income 428 413 484 4 Interest Expense (171) (171)
Slide 13: Core Earnings (Non-GAAP)
Core Earnings (Non‐GAAP) (unaudited, in millions) 3Q15 2Q15 3Q14 1 Interest Income $407 $389 $367 2 Interest Expense (65) (58) (58) 3 Provision for Finance Receivable Losses (81) (77) (83) 4 Net Interest Income after Provision 261 254 226 5 Insurance 40 40 44 6 Investment 12 14 14 7 Portfolio Servic
Slide 14: Core: Consumer and Insurance Segment
Core: Consumer and Insurance Segment (unaudited, in millions) 3Q15 2Q15 3Q14 1 Interest Income $293 $269 $236 2 Interest Expense (43) (36) (40) 3 Provision for Finance Receivable Losses (62) (54) (56) 4 Net Interest Income after Provision 188 179 140 5 Insurance 40 40 44 6 Investment 12 14 14 7 Othe
Slide 15: Core: Acquisitions and Servicing Segment
Core: Acquisitions and Servicing Segment (unaudited, in millions) 3Q15 2Q15 3Q14 1 Interest Income $114 $120 $131 2 Interest Expense (22) (22) (18) 3 Provision for Finance Receivable Losses (19) (23) (27) 4 Net Interest Income after Provision 73 75 86 5 Portfolio Servicing Fees from SpringCastle 13
Slide 16: Non-Core: Real Estate Segment
Non‐Core: Real Estate Segment (unaudited, in millions) 3Q15 2Q15 3Q14 1 Interest Income $17 $17 $95 2 Interest Expense (58) (59) (84) 3 Provision ‐ TDR (1) (1) (9) 4 Provision ‐ Non‐TDR 5 6 (28) 5 Net Interest Loss after Provision (37) (37) (26) 6 Investment 0 3 (1) 7 Net Gain on Sales of Real Estat
Slide 17: Non-Core: Other
Non‐Core: Other (unaudited, in millions) 3Q15 2Q15 3Q14 1 Interest Income $1 $3 $5 2 Interest Expense (16) (22) (2) 3 Provision for Finance Receivable Losses 0 (1) (2) 4 Net Interest Income (Loss) after Provision (15) (20) 1 1,2 5 Operating Expenses (15) (25) (3) 6 Total Other Expenses (15) (25) (3)
Slide 18: Reconciliation – Push-Down Accounting to Historical / Pretax Core Earnings
Reconciliation – Push‐Down Accounting to Historical / Pretax Core Earnings (unaudited, in millions) 3Q15 2Q15 3Q14 1 1 Push‐Down Accounting Pretax Income (Loss) Attributable to Springleaf ($9) ($20) $662 2 Finance Charges (2) (2) (11) 3 Finance Receivables Held for Sale Originated as Held for Invest