Springleaf Financial

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Springleaf Financial
Type Public
Traded as NYSELEAF
Industry Financial Services
Founded 1920
Headquarters Evansville, IN
Key people Jay Levine (President & CEO)
Revenue IncreaseUS$523.8 Million (FY 2011)
Net income DecreaseUS$(52.9 Million) (FY 2011)
Total assets DecreaseUS$17.5 Billion (FY 2011)
Total equity DecreaseUS$1.5 Billion (FY 2011)
Employees 8,000
Website Springleaffinancial.com

Springleaf Financial, previously known as American General Finance, is a company whose primary business is consumer lending, credit insurance, and other credit related products. Its corporate headquarters are in Evansville, Indiana, with roughly 900 branch locations in 25 states, the United Kingdom, Puerto Rico and the U.S. Virgin Islands. In 2010, the company became an 80% subsidiary of Fortress Investment Group.[1] On October 16, 2013, Springleaf held an IPO on the NYSE under the ticker symbol "LEAF",[2] at which time the company was valued at $1.68B[3]

History[edit]

The company began in 1920 as Interstate Finance Corporation to underwrite the sales of trucks and other vehicles. By 1929 the company had expanded to write credit-related insurance and start providing services outside of the Evansville area. In 1934 expanded across state lines by opening branches in Owensboro, Kentucky and Henderson, Kentucky.

Throughout the next couple of decades the company continued to grow and expand. In 1960 it went public on the Over-The-Counter Market. Three years later, in 1963, it started operating under the names of CrediThrift of America and CreditWay of America, and also began construction on a new headquarters building in Evansville. In 1969 the company was listed on the New York Stock Exchange.

In 1982 the company was acquired by American General Corporation (now known as AIG), and acquired General Finance with 350 branches in 16 states. Five years later, in 1988, the company acquired Manufacturers Hanover Consumer Services, which expanded the company to more than 1,400 branch offices in 40 states, Puerto Rico, and the Virgin Islands. That same year the company began operating under the name of American General Finance. In 2006, with continued growth, the company announced yet another expansion of its Evansville headquarters building and continued acquisitions of other financial services companies.

The 2007–2012 global financial crisis and the 2008–2012 global recession substantially hurt the company's financial performance. As of June 30, 2008, about 83 percent, or $7.7 billion, of its real estate loans were held by subprime borrowers. For 2008, American General Finance reported a loss of $1.3 billion.[4] As a result, over the next two years the company closed over 500 local branches and cut 500 positions, including 140 of their Evansville headquartered employees.[5][6]

In August 2010, Fortress Investment Group acquired 80% of the company and, in 2011, changed its name to Springleaf Financial Services.[4]

Services[edit]

Springleaf employs an estimated 4,600 people (about 900 of which are at its Evansville headquarters).[7] Part of its services focuses on originating secured and unsecured consumer loans. This "branch network" segment purchases retail sales finance contracts, and provides revolving retail sales financing services. Through this, the company finances retail sales of consumer goods and services by retail merchants.

References[edit]

  1. ^ http://phx.corporate-ir.net/phoenix.zhtml?c=205346&p=irol-newsArticle_Print&ID=1501604&highlight
  2. ^ Springleaf Holdings Celebrates IPO on the NYSE, New York Stock Exchange, retrieved February 2, 2014 
  3. ^ Monks, Matthew, Fortress Wins Big in Turnaround of Subprime Lender Springleaf, Bloomberg.com, retrieved February 2, 2014 
  4. ^ a b "American General Finance sold to Fortress Investment Group". Courier & Press. 11 August 2010. Retrieved 15 June 2012. 
  5. ^ Shaw, Dan (12 November 2008). "American General Finance closes S. Green River branch". Courier & Press. Retrieved 15 June 2012. 
  6. ^ Shaw, Dan (6 May 2009). "Evansville's American General Finance cutting over 600 jobs, 150 offices". Indiana Economic Digest. Retrieved 15 June 2012. 
  7. ^ loansfast.com