ALLOWANCE FOR LOAN LOSSES

6 Months Ended

Sep. 30, 2016

The following is a summary of gross loans receivable as of:



	September 30, 2016		March 31, 2016	September 30, 2015
Small loans	$	670,925,676	637,826,581	707,579,913
Large loans	424,299,215		427,723,584	450,900,192
Sales finance receivables⁽¹⁾	352,484		1,414,177	4,356,239
Total gross loans	$	1,095,577,375	1,066,964,342	1,162,836,344

⁽¹⁾ The Company decided to wind down the World Class Buying Club program during the third quarter of fiscal 2015. As of March 31, 2015, the Company is no longer financing the purchase of products through the program; however, the Company will continue to service the outstanding retail installment sales contracts.

The following is a summary of the changes in the allowance for loan losses for the periods indicated:



	Three months ended September 30,					Six months ended September 30,
	2016			2015		2016			2015
Balance at beginning of period	$	71,993,060		71,959,969		$	69,565,804		70,437,988
Provision for loan losses	35,870,744			37,557,136		67,885,021			63,785,145
Loan losses	(34,724,133		)	(32,452,762	)	(67,418,975		)	(62,328,194	)
Recoveries ⁽¹⁾	3,743,900			3,890,945		7,466,298			9,265,793
Translation adjustment	(462,260		)	(637,575	)	(1,076,837		)	(843,019	)
Balance at end of period	$	76,421,311		80,317,713		$	76,421,311		80,317,713

⁽¹⁾ Recoveries during the three and six months ended September 30, 2015 included $0.3 million and $2.1 million, respectively, of recoveries resulting from the sale of previously charged-off loans.

The following is a summary of loans individually and collectively evaluated for impairment for the period indicated:



September 30, 2016	Loans individually evaluated for impairment (impaired loans)			Loans collectively evaluated for impairment		Total
Gross loans in bankruptcy, excluding contractually delinquent	$	5,438,380		—		5,438,380
Gross loans contractually delinquent	50,928,815			—		50,928,815
Loans not contractually delinquent and not in bankruptcy	—			1,039,210,180		1,039,210,180
Gross loan balance	56,367,195			1,039,210,180		1,095,577,375
Unearned interest and fees	(13,587,281		)	(291,492,486	)	(305,079,767	)
Net loans	42,779,914			747,717,694		790,497,608
Allowance for loan losses	(37,572,665		)	(38,848,646	)	(76,421,311	)
Loans, net of allowance for loan losses	$	5,207,249		708,869,048		714,076,297



March 31, 2016	Loans individually evaluated for impairment (impaired loans)			Loans collectively evaluated for impairment		Total
Gross loans in bankruptcy, excluding contractually delinquent	$	4,560,322		—		4,560,322
Gross loans contractually delinquent	46,373,923			—		46,373,923
Loans not contractually delinquent and not in bankruptcy	—			1,016,030,097		1,016,030,097
Gross loan balance	50,934,245			1,016,030,097		1,066,964,342
Unearned interest and fees	(12,726,898		)	(277,932,264	)	(290,659,162	)
Net loans	38,207,347			738,097,833		776,305,180
Allowance for loan losses	(33,840,839		)	(35,724,965	)	(69,565,804	)
Loans, net of allowance for loan losses	$	4,366,508		702,372,868		706,739,376



September 30, 2015	Loans individually evaluated for impairment (impaired loans)			Loans collectively evaluated for impairment		Total
Gross loans in bankruptcy, excluding contractually delinquent	$	5,815,451		—		5,815,451
Gross loans contractually delinquent	50,367,100			—		50,367,100
Loans not contractually delinquent and not in bankruptcy	—			1,106,653,793		1,106,653,793
Gross loan balance	56,182,551			1,106,653,793		1,162,836,344
Unearned interest and fees	(13,690,473		)	(304,787,151	)	(318,477,624	)
Net loans	42,492,078			801,866,642		844,358,720
Allowance for loan losses	(36,923,783		)	(43,393,930	)	(80,317,713	)
Loans, net of allowance for loan losses	$	5,568,295		758,472,712		764,041,007

The average net balance of impaired loans was $40.0 million and $40.5 million, respectively, for the six month periods ended September 30, 2016, and 2015. It is not practical to compute the amount of interest earned on impaired loans.

The following is an assessment of the credit quality for the period indicated:



	September 30, 2016		March 31, 2016	September 30, 2015
Credit risk
Consumer loans- non-bankrupt accounts	$	1,088,922,796	1,061,436,900	1,156,214,553
Consumer loans- bankrupt accounts	6,654,579		5,527,442	6,621,791
Total gross loans	$	1,095,577,375	1,066,964,342	1,162,836,344

Consumer credit exposure
Credit risk profile based on payment activity, performing	$	1,011,545,342	991,386,552	1,080,978,309
Contractual non-performing, 60 or more days delinquent ⁽¹⁾	84,032,033		75,577,790	81,858,035
Total gross loans	$	1,095,577,375	1,066,964,342	1,162,836,344

Credit risk profile based on customer type
New borrower	$	153,288,845	141,980,629	146,616,695
Former borrower	124,276,487		111,608,375	135,980,288
Refinance	799,560,573		793,913,695	854,893,667
Delinquent refinance	18,451,470		19,461,643	25,345,694
Total gross loans	$	1,095,577,375	1,066,964,342	1,162,836,344

(1) Loans in non-accrual status

The following is a summary of the past due receivables as of:



	September 30, 2016			March 31, 2016		September 30, 2015
Contractual basis:
30-59 days past due	$	45,155,834		40,094,824		46,898,071
60-89 days past due	29,323,326			27,082,385		28,639,336
90 days or more past due	54,708,707			48,495,405		53,218,699
Total	$	129,187,867		115,672,614		128,756,106

Percentage of period-end gross loans receivable	11.8		%	10.8	%	11.1	%

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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