ALLOWANCE FOR LOAN LOSSES

9 Months Ended

Dec. 31, 2017

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



	December 31, 2017		March 31, 2017	December 31, 2016

Small loans (U.S.)	$	774,416,024	630,802,614	737,527,303
Large loans (U.S.)	352,999,300		312,458,275	327,445,892
Sales finance loans (U.S.)⁽¹⁾	4,057		54,247	151,585
Payroll deduct "Viva" loans (Mexico)	55,779,520		69,087,314	57,601,866
Traditional installment loans (Mexico)	46,105,461		47,401,682	42,282,369
Total gross loans	$	1,229,304,362	1,059,804,132	1,165,009,015


⁽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 December 31,					Nine months ended December 31,
	2017			2016		2017			2016

Balance at beginning of period	$	86,730,801		76,421,311		$	72,194,892		69,565,804
Provision for loan losses	43,754,905			39,984,838		113,570,935			107,869,859
Loan losses	(36,323,744		)	(37,707,592	)	(99,787,954		)	(105,126,567	)
Recoveries	3,438,705			3,674,873		11,336,616			11,141,171
Translation adjustment	(1,127,037		)	(570,110	)	(840,859		)	(1,646,947	)
Balance at end of period	$	96,473,630		81,803,320		$	96,473,630		81,803,320

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



December 31, 2017	Loans individually evaluated for impairment (impaired loans)			Loans collectively evaluated for impairment		Total

Gross loans in bankruptcy, excluding contractually delinquent	$	4,507,308		—		4,507,308
Gross loans contractually delinquent	70,971,901			—		70,971,901
Loans not contractually delinquent and not in bankruptcy	—			1,153,825,153		1,153,825,153
Gross loan balance	75,479,209			1,153,825,153		1,229,304,362
Unearned interest and fees	(20,011,316		)	(321,914,908	)	(341,926,224	)
Net loans	55,467,893			831,910,245		887,378,138
Allowance for loan losses	(51,152,146		)	(45,321,484	)	(96,473,630	)
Loans, net of allowance for loan losses	$	4,315,747		786,588,761		790,904,508



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



December 31, 2016	Loans individually evaluated for impairment (impaired loans)			Loans collectively evaluated for impairment		Total

Gross loans in bankruptcy, excluding contractually delinquent	$	4,679,222		—		4,679,222
Gross loans contractually delinquent	58,478,910			—		58,478,910
Loans not contractually delinquent and not in bankruptcy	—			1,101,850,883		1,101,850,883
Gross loan balance	63,158,132			1,101,850,883		1,165,009,015
Unearned interest and fees	(16,082,976		)	(311,225,078	)	(327,308,054	)
Net loans	47,075,156			790,625,805		837,700,961
Allowance for loan losses	(42,594,801		)	(39,208,519	)	(81,803,320	)
Loans, net of allowance for loan losses	$	4,480,355		751,417,286		755,897,641

The average net balance of impaired loans was $48.5 million and $41.8 million, respectively, for the nine month periods ended December 31, 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:



	December 31, 2017		March 31, 2017	December 31, 2016
Credit risk
Consumer loans- non-bankrupt accounts	$	1,223,476,334	1,053,769,654	1,159,145,977
Consumer loans- bankrupt accounts	5,828,028		6,034,478	5,863,038
Total gross loans	$	1,229,304,362	1,059,804,132	1,165,009,015

Consumer credit exposure
Credit risk profile based on payment activity, performing	$	1,124,326,839	977,171,570	1,076,292,159
Contractual non-performing, 60 or more days delinquent ⁽¹⁾	104,977,523		82,632,562	88,716,856
Total gross loans	$	1,229,304,362	1,059,804,132	1,165,009,015

Credit risk profile based on customer type
New borrower	$	185,408,524	168,656,845	169,425,813
Former borrower	142,002,375		108,100,688	136,401,410
Refinance	882,354,941		765,373,325	839,846,451
Delinquent refinance	19,538,522		17,673,274	19,335,341
Total gross loans	$	1,229,304,362	1,059,804,132	1,165,009,015


⁽¹⁾	Loans in non-accrual status.

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



	December 31, 2017			March 31, 2017		December 31, 2016
Contractual basis:
30-59 days past due	$	44,389,685		35,527,103		42,938,440
60-89 days past due	29,699,594			25,823,757		28,231,005
90 days or more past due	75,277,929			56,808,805		60,485,851
Total	$	149,367,208		118,159,665		131,655,296

Percentage of period-end gross loans receivable	12.2		%	11.1	%	11.3	%

- 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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