As Evansville-based Springleaf Holdings Inc. (NYSE: LEAF) awaits regulatory approvals for its proposed $4.25 billion acquisition of a Baltimore-based unit of Citigroup Inc. (NYSE: C), it has released third quarter results. The company is reporting a net loss of $11 million, compared to a profit of $427 million during the same period in 2014. Springleaf says the results last year were bolstered by a $641 million gain from real estate asset sales.
Springleaf Chief Executive Officer Jay Levine says "our results this quarter continue to demonstrate our ability to generate significant growth in total receivables and receivables per branch, both of which were up over 30 percent from last year’s quarter. Growing receivables per branch continues to be a key strategy for us because of the positive operating leverage provided by our largely fixed cost branch network." He adds "also contributing to our strong performance this quarter was the meaningful improvement in our net charge-off ratio from last year’s third quarter and the second quarter of this year."
When the deal for OneMain Financial was announced in March, SpringLeaf anticipated it would close in the third quarter. Springleaf says antitrust discussions with the Department of Justice continue and on September 30, the company transferred $608 million of personal loans from "held for investment" to "held for sale." OneMain is a subprime lending arm of Citigroup.