July 29, 2017

AILA Members and Friends:

I have compared some statistics from the Alabama State Banking Department Annual Reports for FY 2016 and FY 2015. The fiscal year in Alabama runs from October 1st to September 30th. We are probably five months away from seeing the next Annual Report from the Alabama State Banking Department. The following statistics are based on a comparison of 2016 with 2015:

Number of Mini-Code Licensed Offices: increased by 10.9%.

Number of Mini-Code Total Receivables: increased by 64.9%.

Dollar Amount of Mini Code Receivables: increased by 8.23%.

Net Profit: decreased by 10.1%.

Number of Small Loan Act Licensed Offices: decreased by 0.6%.

Number of Small Loan Act Loans Outstanding: decreased by 8.9%.

Dollar Amount of Total Loans Outstanding: decreased by 3%.

Net Profit: decreased by 20.7%.

Combined Number of Mini-Code and SLA Licensed Offices: increased by 6.7%.

Combined Number of Mini-Code and SLA Receivables: increased by 26.7%.

Combined Dollar Amount of Mini-Code and SLA Receivables Outstanding: increased by 7.6%.

Net Profit of combined Mini-Code and SLA: decreased by 10.8%.

I expect that the next Annual Report will show a marked increase in Small Loan Act licenses, both because of the continuing transition of Deferred Presentment licensees to installment lending, and because of the increase lending limits under the Small Loan Act. We will soon see whether the change in the law has a positive effect on profitability.


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