ALLOWANCE FOR LOAN LOSSES

3 Months Ended

Jun. 30, 2017

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



	June 30, 2017		March 31, 2017	June 30, 2016

Small loans (U.S.)	$	662,747,809	630,802,614	669,679,726
Large loans (U.S.)	318,923,824		312,458,275	315,551,585
Sales finance loans (U.S.)⁽¹⁾	26,049		54,247	783,520
Payroll deduct "Viva" loans (Mexico)	78,585,491		69,087,314	56,866,053
Traditional installment loans (Mexico)	50,088,812		47,401,682	44,621,298
Total gross loans	$	1,110,371,985	1,059,804,132	1,087,502,182


⁽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 June 30,
	2017			2016

Balance at beginning of period	$	72,194,892		69,565,804
Provision for loan losses	30,840,058			32,014,277
Loan losses	(31,177,464		)	(32,694,842	)
Recoveries	4,208,634			3,722,398
Translation adjustment	460,128			(614,577	)
Balance at end of period	$	76,526,248		71,993,060

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



June 30, 2017	Loans individually evaluated for impairment (impaired loans)			Loans collectively evaluated for impairment		Total
Gross loans in bankruptcy, excluding contractually delinquent	$	4,712,263		—		4,712,263
Gross loans contractually delinquent	55,434,126			—		55,434,126
Loans not contractually delinquent and not in bankruptcy	—			1,050,225,596		1,050,225,596
Gross loan balance	60,146,389			1,050,225,596		1,110,371,985
Unearned interest and fees	(15,137,719		)	(297,647,793	)	(312,785,512	)
Net loans	45,008,670			752,577,803		797,586,473
Allowance for loan losses	(40,496,678		)	(36,029,570	)	(76,526,248	)
Loans, net of allowance for loan losses	$	4,511,992		716,548,233		721,060,225



March 31, 2017	Loans individually evaluated for impairment (impaired loans)			Loans collectively evaluated for impairment		Total
Gross loans in bankruptcy, excluding contractually delinquent	$	4,903,728		—		4,903,728
Gross loans contractually delinquent	54,310,791			—		54,310,791
Loans not contractually delinquent and not in bankruptcy	—			1,000,589,613		1,000,589,613
Gross loan balance	59,214,519			1,000,589,613		1,059,804,132
Unearned interest and fees	(15,336,248		)	(276,572,403	)	(291,908,651	)
Net loans	43,878,271			724,017,210		767,895,481
Allowance for loan losses	(39,182,951		)	(33,011,941	)	(72,194,892	)
Loans, net of allowance for loan losses	$	4,695,320		691,005,269		695,700,589



June 30, 2016	Loans individually evaluated for impairment (impaired loans)			Loans collectively evaluated for impairment		Total
Gross loans in bankruptcy, excluding contractually delinquent	$	4,849,868		—		4,849,868
Gross loans contractually delinquent	46,926,272			—		46,926,272
Loans not contractually delinquent and not in bankruptcy	—			1,035,726,042		1,035,726,042
Gross loan balance	51,776,140			1,035,726,042		1,087,502,182
Unearned interest and fees	(12,655,577		)	(289,436,429	)	(302,092,006	)
Net loans	39,120,563			746,289,613		785,410,176
Allowance for loan losses	(34,476,814		)	(37,516,246	)	(71,993,060	)
Loans, net of allowance for loan losses	$	4,643,749		708,773,367		713,417,116

The average net balance of impaired loans was $44.4 million and $38.7 million, respectively, for the three month periods ended June 30, 2017, and 2016. 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:



	June 30, 2017		March 31, 2017	June 30, 2016
Credit risk
Consumer loans- non-bankrupt accounts	$	1,104,398,706	1,053,769,654	1,081,650,322
Consumer loans- bankrupt accounts	5,973,279		6,034,478	5,851,860
Total gross loans	$	1,110,371,985	1,059,804,132	1,087,502,182

Consumer credit exposure
Credit risk profile based on payment activity, performing	$	1,026,753,933	977,171,570	1,011,083,612
Contractual non-performing, 60 or more days delinquent ⁽¹⁾	83,618,052		82,632,562	76,418,570
Total gross loans	$	1,110,371,985	1,059,804,132	1,087,502,182

Credit risk profile based on customer type
New borrower	$	172,300,783	168,656,845	137,421,921
Former borrower	124,325,111		108,100,688	121,314,533
Refinance	795,397,267		765,373,325	810,003,062
Delinquent refinance	18,348,824		17,673,274	18,762,666
Total gross loans	$	1,110,371,985	1,059,804,132	1,087,502,182


⁽¹⁾	Loans in non-accrual status.

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



	June 30, 2017			March 31, 2017		June 30, 2016
Contractual basis:
30-59 days past due	$	38,506,512		35,527,103		42,599,938
60-89 days past due	24,413,268			25,823,757		27,460,571
90 days or more past due	59,204,784			56,808,805		48,957,999
Total	$	122,124,564		118,159,665		119,018,508

Percentage of period-end gross loans receivable	11.0		%	11.1	%	10.9	%

- 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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