Santander Consumer USA Holdings Inc.

CIK:0001580608|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Interest on finance receivables and loans	$ 1,304,651	$ 1,273,819
Leased vehicle income	740,884	747,979
Other finance and interest income	1,426	7,551
Total finance and other interest income	2,046,961	2,029,349
Interest expense — Including $85,904 and $62,770 to affiliates, respectively	253,537	328,834
Leased vehicle expense	423,795	552,912
Net finance and other interest income	1,369,629	1,147,603
Credit loss expense	136,209	907,887
Net finance and other interest income after credit loss expense	1,233,420	239,716
Profit sharing	67,326	14,295
Net finance and other interest income after credit loss expense and profit sharing	1,166,094	225,421
Investment losses, net	(14,712)	(63,426)
Servicing fee income — Including $9,197 and $12,552 from affiliates, respectively	18,694	19,103
Fees, commissions, and other — Including $3,330 and $3,306 from affiliates, respectively	100,528	95,130
Total other income	104,510	50,807
Compensation and benefits	153,895	133,326
Repossession expense	45,346	57,662
Other expenses — Including $1,814 and $1,097 to affiliates, respectively	95,251	91,685
Total operating expenses	294,492	282,673
Income (loss) before income taxes	976,112	(6,445)
Income tax expense	234,457	(2,458)
Net income (loss)	741,655	(3,987)
Other comprehensive income (loss):
Unrealized gains (losses) on cash flow hedges, net of tax of $2,949 and $(12,543) respectively	9,066	(39,019)
Unrealized gains (losses) on available-for-sale and held-to-maturity debt securities net of tax of $(103) and $661, respectively	(318)	2,057
Comprehensive income (loss)	$ 750,403	$ (40,949)
Net income per common share (basic) (in dollars per share)	$ 2.42	$ (0.01)
Net income per common share (diluted) (in dollars per share)	2.42	(0.01)
Dividends declared per common share (in dollars per share)	$ 0.44	$ 0.22
Weighted average common shares (basic) (in shares)	306,108,987	334,026,052
Weighted average common shares (diluted) (in shares)	306,325,155	334,346,122

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2021

Mar. 31, 2020

Cash flows from operating activities:

Net income (loss)

$ 741,655

$ (3,987)

Adjustments to reconcile net income to net cash provided by operating activities

Derivative mark to market

(503)

8,923

Credit loss expense

136,209

907,887

Depreciation, amortization and accretion

477,423

564,878

Originations and purchases of receivables held for sale

Proceeds from sales and collections on receivables held for sale

^[1]

1,333,954

24,263

Investment losses, net

14,712

63,426

Stock-based compensation

5,448

4,038

Deferred tax expense/(benefit)

231,187

(4,798)

Net change in:

Revolving personal loans

34,246

19,012

Other assets

80,933

(43,309)

Other liabilities

97,634

(145,217)

Net cash provided by operating activities

3,152,898

1,395,116

Cash flows from investing activities:

Originations and purchases of portfolios on finance receivables held for investment

(4,492,802)

(3,939,255)

Collections on finance receivables held for investment

3,610,444

3,294,442

Proceeds from sales of finance receivables held for sale, originated as held for investment

^[2]

1,812,552

Leased vehicles purchased

(2,172,167)

(2,030,936)

Manufacturer and Dealer incentives

15,354

170,800

Proceeds from sale of leased vehicles

1,497,995

941,551

Change in revolving personal loans, net

31,121

28,478

Proceeds from repayments and maturities of held-to-maturity securities

6,318

Purchases of furniture and equipment

(3,496)

(7,508)

Sales of furniture and equipment

1,332

Net cash provided by (used in) investing activities

306,651

(1,542,427)

Cash flows from financing activities:

Proceeds from borrowings and other debt obligations, net of debt issuance costs - $2,200,000 and $1,835,000 from affiliates, respectively

9,081,404

11,374,959

Payments on borrowings and other debt obligations - $(2,500,000) and $(1,835,000) to affiliates, respectively

(11,687,888)

(10,357,462)

Proceeds from stock option exercises, gross

452

409

Shares repurchased

(9,474)

(468,466)

Dividends paid

(134,656)

(74,624)

Net cash provided by (used in) financing activities

(2,750,162)

474,816

Net increase (decrease) in cash and cash equivalents and restricted cash

709,387

327,505

Cash and cash equivalents and restricted cash— Beginning of year

2,330,147

2,161,087

Cash and cash equivalents and restricted cash— End of year

3,039,534

2,488,592

Supplemental cash flow information:

Cash and cash equivalents

415,969

501,588

Restricted cash

2,623,565

1,987,004

Total cash, cash equivalents and restricted cash

$ 3,039,534

$ 2,488,592

[1]	Included in this balance is sales proceeds from Bluestem portfolio sale of $608 million for loans originated as held for sale.
[2]	Included in this balance is sales proceeds from Bluestem portfolio sale of $188 million for loans originated as held for investment.

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
ASSETS
Cash and cash equivalents - $356,911 and $32,490 held at affiliates, respectively	$ 415,969	$ 109,053
Finance receivables held for sale, net	0	1,567,527
Finance receivables held for investment, at amortized cost	32,090,201	33,114,638
Allowance for credit loss	(6,005,115)	(6,110,633)
Finance receivables held for investment, at amortized cost, net	26,085,086	27,004,005
Restricted cash - $27 and $27 held at affiliates, respectively	2,623,565	2,221,094
Accrued interest receivable	345,769	415,765
Goodwill	74,056	74,056
Intangible assets, net of amortization of $68,013 and $63,488, respectively	73,833	70,128
Other assets - $5,886 and $14,451 held at affiliates, respectively	1,079,419	972,726
TOTAL ASSETS	47,234,002	48,887,493
LIABILITIES
Borrowings and other debt obligations - $10,501,060 and $10,801,318 to/from affiliates, respectively	38,541,624	41,138,674
Deferred tax liabilities, net	1,497,829	1,263,796
Accounts payable and accrued expenses - $83,994 and $80,428 held at affiliates, respectively	567,474	531,369
Other liabilities - $1,438 and $463 held at affiliates, respectively	395,222	331,693
TOTAL LIABILITIES	41,002,149	43,265,532
Commitments and contingencies (Notes 7 and 14)
STOCKHOLDERS' EQUITY:
Common stock, $0.01 par value - 1,100,000,000 shares authorized; 0 and 363,159,613 shares issued and 0 and 306,091,978 shares outstanding, respectively	3,060	3,061
Additional paid-in capital	387,946	393,800
Accumulated other comprehensive income (loss), net of taxes	(41,818)	(50,566)
Retained earnings	5,882,665	5,275,666
TOTAL STOCKHOLDERS' EQUITY	6,231,853	5,621,961
TOTAL LIABILITIES AND EQUITY	47,234,002	48,887,493
Leased Vehicles
ASSETS
Property, plant and equipment, net	16,478,224	16,391,107
Furniture and Fixtures
ASSETS
Property, plant and equipment, net	$ 58,081	$ 62,032