![slide1](https://capedge.com/proxy/CORRESP/0001580608-18-000080/exhibitbimpactoftdrnonac001.jpg)
Exhibit B – Impact of TDR nonaccrual and past due combined Financial Statements: The impact of the errors1, on financial statement line items in presented periods (consistent with periods2 that will be presented in the SC Q3 2018 10-Q3), is as follows (dollars in thousands, except per share): Income Statement (Rollover Method)4 For the nine For the three months ended % of % of months ended % of % of 09/30/2017 reported corrected 09/30/2017 reported corrected Interest on finance receivables and loans, as reported $ 3,626,497 $ 1,185,059 Item 1 # Partial Payment (1,824) (0.1%) (0.0%) (1,824) (0.2%) (0.1%) Item 2 # TDR nonaccrual 55,859 1.5% 1.5% 32,995 2.8% 2.7% Total corrections 54,035 1.5% 1.5% 31,171 2.6% 2.6% Interest on finance receivables and loans, as corrected $ 3,680,532 $ 1,216,230 Net finance and other interest income, as reported $ 3,308,231 $ 1,059,121 Item 1 # Partial Payment (1,824) (0.1%) (0.1%) (1,824) (0.2%) (0.2%) Item 2 # TDR nonaccrual 55,859 1.7% 1.7% 32,995 3.1% 3.0% Total corrections 54,035 1.6% 1.6% 31,171 2.9% 2.9% Net finance and other interest income, as corrected $ 3,362,266 $ 1,090,292 Provision for credit losses, as reported $ 1,692,015 $ 536,447 Item 1 # Partial Payment 17,643 1.0% 1.0% 17,643 3.3% 3.0% Item 2 # TDR nonaccrual 55,859 3.3% 3.2% 32,995 6.2% 5.6% Total corrections 73,502 4.3% 4.2% 50,638 9.4% 8.6% Provision for credit losses, as corrected $ 1,765,517 $ 587,085 Pre-tax income, as reported $ 847,309 $ 277,773 Item 1 # Partial Payment $ (19,467) (2.3%) (2.4%) $ (19,467) (7.0%) (7.5%) Item 2 # TDR nonaccrual $ - 0.0% 0.0% $ - 0.0% 0.0% Total corrections (19,467) (2.3%) (2.4%) (19,467) (7.0%) (7.5%) Pre-tax income, as corrected $ 827,842 $ 258,306 Net income, as reported $ 607,490 $ 199,388 Item 1 # Partial Payment (13,957) (2.3%) (2.4%) (13,974) (7.0%) (7.5%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% Total corrections (13,957) (2.3%) (2.4%) (13,974) (7.0%) (7.5%) Net income, as corrected $ 593,533 $ 185,414 Comprehensive income, as reported $ 606,712 $ 199,009 Item 1 # Partial Payment (13,957) (2.3%) (2.4%) (13,974) (7.0%) (7.6%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% Total corrections (13,957) (2.3%) (2.4%) (13,974) (7.0%) (7.6%) Comprehensive income, as corrected $ 592,755 $ 185,035 EPS (diluted), as reported $ 1.69 $ 0.55 Item 1 # Partial Payment (0.04) (2.4%) (2.4%) (0.04) (7.3%) (7.8%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% Total corrections (0.04) (2.4%) (2.4%) (0.04) (7.3%) (7.8%) EPS (diluted), as corrected $ 1.65 $ 0.51 1 The variance is presented as both a percentage of the originally reported figure (left percentage column) and of the corrected figure (right percentage column). 2 We have included other periods that may not be presented in the future SEC filings, for example three months ended March 31, 2017, to show that the impact was immaterial to previously reported periods as well. 3 In addition, the Company reviewed the impact on income statement for the three months ended December 31, 2017 and noted that in “no” instance was the above threshold breached (after normalizing the pre-tax and net income for significant items that occurred in Q4’17 – See 8K dated 01/31/2018) and therefore this change did not have any quantitatively material impact on the income statement. 4 The Company has intentionally included the same impact for three months ended and corresponding six or nine months ended periods for the errors related to partial payment, since the assessment was done at each quarter end and this analysis represents the highest possible impact for each quarter end period. Page 1 of 7
![slide2](https://capedge.com/proxy/CORRESP/0001580608-18-000080/exhibitbimpactoftdrnonac002.jpg)
For the six For the six For the three For the three months ended % of % of months ended % of % of months ended % of % of months ended % of % of 06/30/2018 reported corrected 06/30/2017 reported corrected 06/30/2018 reported corrected 06/30/2017 reported corrected Interest on finance receivables and loans, as reported $ 2,270,673 $ 2,441,438 $ 1,156,536 $ 1,232,252 Item 1 # Partial Payment (1,461) (0.1%) (0.1%) (2,068) (0.1%) (0.1%) (1,461) (0.1%) (0.1%) (2,068) (0.2%) (0.2%) Item 2 # TDR nonaccrual 108,239 4.8% 4.6% 22,864 0.9% 0.9% 54,683 4.7% 4.5% (7,572) (0.6%) (0.6%) Total corrections 106,779 4.7% 4.5% 20,796 0.9% 0.8% 53,223 4.6% 4.4% (9,640) (0.8%) (0.8%) Interest on finance receivables and loans, as corrected $ 2,377,452 $ 2,462,234 $ 1,209,759 $ 1,222,612 Net finance and other interest income, as reported $ 2,094,480 $ 2,249,110 $ 1,068,639 $ 1,135,126 Item 1 # Partial Payment (1,461) (0.1%) (0.1%) (2,068) (0.1%) (0.1%) (1,461) (0.1%) (0.1%) (2,068) (0.2%) (0.2%) Item 2 # TDR nonaccrual 108,239 5.2% 4.9% 22,864 1.0% 1.0% 54,683 5.1% 4.9% (7,572) (0.7%) (0.7%) Total corrections 106,779 5.1% 4.9% 20,796 0.9% 0.9% 53,223 5.0% 4.7% (9,640) (0.8%) (0.9%) Net finance and other interest income, as corrected $ 2,201,259 $ 2,269,906 $ 1,121,862 $ 1,125,486 Provision for credit losses, as reported $ 811,570 $ 1,155,568 $ 352,575 $ 520,555 Item 1 # Partial Payment 3,987 0.5% 0.4% 16,074 1.4% 1.3% 3,987 1.1% 1.0% 16,074 3.1% 3.0% Item 2 # TDR nonaccrual 108,239 13.3% 11.7% 22,864 2.0% 1.9% 54,683 15.5% 13.3% (7,572) (1.5%) (1.4%) Total corrections 112,226 13.8% 12.1% 38,938 3.4% 3.3% 58,670 16.6% 14.3% 8,502 1.6% 1.6% Provision for credit losses, as corrected $ 923,796 $ 1,194,506 $ 411,245 $ 529,057 Pre-tax income, as reported $ 748,255 $ 569,536 $ 448,645 $ 348,108 Item 1 # Partial Payment $ (5,447) (0.7%) (0.7%) $ (18,142) (3.2%) (3.3%) $ (5,447) (1.2%) (1.2%) $ (18,142) (5.2%) (5.5%) Item 2 # TDR nonaccrual $ - 0.0% 0.0% $ - 0.0% 0.0% $ - 0.0% 0.0% $ - 0.0% 0.0% Total corrections (5,447) (0.7%) (0.7%) (18,142) (3.2%) (3.3%) (5,447) (1.2%) (1.2%) (18,142) (5.2%) (5.5%) Pre-tax income, as corrected $ 742,808 $ 551,394 $ 443,198 $ 329,966 Net income, as reported $ 576,940 $ 408,102 $ 334,641 $ 264,675 Item 1 # Partial Payment (4,200) (0.7%) (0.7%) (11,793) (2.9%) (3.0%) (4,063) (1.2%) (1.2%) (11,793) (4.5%) (4.7%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections (4,200) (0.7%) (0.7%) (11,793) (2.9%) (3.0%) (4,063) (1.2%) (1.2%) (11,793) (4.5%) (4.7%) Net income, as corrected $ 572,740 $ 396,309 $ 330,578 $ 252,882 Comprehensive income, as reported $ 588,979 $ 407,703 $ 333,880 $ 257,031 Item 1 # Partial Payment (4,200) (0.7%) (0.7%) (11,793) (2.9%) (3.0%) (4,063) (1.2%) (1.2%) (11,793) (4.6%) (4.8%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections (4,200) (0.7%) (0.7%) (11,793) (2.9%) (3.0%) (4,063) (1.2%) (1.2%) (11,793) (4.6%) (4.8%) Comprehensive income, as corrected $ 584,779 $ 395,910 $ 329,817 $ 245,238 EPS (diluted), as reported $ 1.59 $ 1.13 $ 0.92 $ 0.74 Item 1 # Partial Payment (0.01) (0.6%) (0.6%) (0.03) (2.7%) (2.7%) (0.01) (1.1%) (1.1%) (0.03) (4.1%) (4.2%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections (0.01) (0.6%) (0.6%) (0.03) (2.7%) (2.7%) (0.01) (1.1%) (1.1%) (0.03) (4.1%) (4.2%) EPS (diluted), as corrected $ 1.58 $ 1.10 $ 0.91 $ 0.71 For the three For the three 12 months 12 months months ended % of % of months ended % of % of ended % of % of ended % of % of 03/31/2018 reported corrected 03/31/2017 reported corrected 12/31/2017 reported corrected 12/31/2016 reported corrected Interest on finance receivables and loans, as reported $ 1,114,137 $ 1,209,186 $ 4,755,678 $ 5,026,790 Item 1 # Partial Payment (1,247) (0.1%) (0.1%) (1,473) (0.1%) (0.1%) (2,094) (0.0%) (0.0%) (2,268) (0.0%) (0.0%) Item 2 # TDR nonaccrual 53,556 4.8% 4.6% 30,436 2.5% 2.5% 92,038 1.9% 1.9% - 0.0% 0.0% Total corrections 52,309 4.7% 4.5% 28,963 2.4% 2.3% 89,945 1.9% 1.9% (2,268) (0.0%) (0.0%) Interest on finance receivables and loans, as corrected $ 1,166,446 $ 1,238,149 $ 4,845,623 $ 5,024,522 Net finance and other interest income, as reported $ 1,025,841 $ 1,113,984 $ 4,317,773 $ 4,726,653 Item 1 # Partial Payment (1,247) (0.1%) (0.1%) (1,473) (0.1%) (0.1%) (2,094) (0.0%) (0.0%) (2,268) (0.0%) (0.0%) Item 2 # TDR nonaccrual 53,556 5.2% 5.0% 30,436 2.7% 2.7% 92,038 2.1% 2.1% - 0.0% 0.0% Total corrections 52,309 5.1% 4.9% 28,963 2.6% 2.5% 89,945 2.1% 2.0% (2,268) (0.0%) (0.0%) Net finance and other interest income, as corrected $ 1,078,150 $ 1,142,947 $ 4,407,718 $ 4,724,385 Provision for credit losses, as reported $ 458,995 $ 635,013 $ 2,254,361 $ 2,468,200 Item 1 # Partial Payment 4,701 1.0% 0.9% 5,777 0.9% 0.9% 17,411 0.8% 0.7% 6,170 0.2% 0.2% Item 2 # TDR nonaccrual 53,556 11.7% 10.4% 30,436 4.8% 4.5% 92,038 4.1% 3.9% - 0.0% 0.0% Total corrections 58,257 12.7% 11.3% 36,213 5.7% 5.4% 109,450 4.9% 4.6% 6,170 0.2% 0.2% Provision for credit losses, as corrected $ 517,252 $ 671,226 $ 2,363,811 $ 2,474,370 Pre-tax income, as reported $ 299,610 $ 221,428 $ 823,514 $ 1,160,711 Item 1 # Partial Payment $ (5,948) (2.0%) (2.0%) $ (7,250) (3.3%) (3.4%) $ (19,505) (2.4%) (2.4%) $ (8,438) (0.7%) (0.7%) Item 2 # TDR nonaccrual $ - 0.0% 0.0% $ - 0.0% 0.0% $ - 0.0% 0.0% $ - 0.0% 0.0% Total corrections (5,948) (2.0%) (2.0%) (7,250) (3.3%) (3.4%) (19,505) (2.4%) (2.4%) (8,438) (0.7%) (0.7%) Pre-tax income, as corrected $ 293,662 $ 214,178 $ 804,009 $ 1,152,273 Net income, as reported $ 242,299 $ 143,427 $ 1,187,606 $ 766,466 Item 1 # Partial Payment (4,810) (2.0%) (2.0%) (4,696) (3.3%) (3.4%) (12,678) (1.1%) (1.1%) (5,572) (0.7%) (0.7%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections (4,810) (2.0%) (2.0%) (4,696) (3.3%) (3.4%) (12,678) (1.1%) (1.1%) (5,572) (0.7%) (0.7%) Net income, as corrected $ 237,489 $ 138,731 $ 1,174,928 $ 760,894 Comprehensive income, as reported $ 255,099 $ 150,672 $ 1,203,609 $ 792,600 Item 1 # Partial Payment (4,810) (1.9%) (1.9%) (4,696) (3.1%) (3.2%) (12,678) (1.1%) (1.1%) (5,572) (0.7%) (0.7%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections (4,810) (1.9%) (1.9%) (4,696) (3.1%) (3.2%) (12,678) (1.1%) (1.1%) (5,572) (0.7%) (0.7%) Comprehensive income, as corrected $ 250,289 $ 145,976 $ 1,190,931 $ 787,028 EPS (diluted), as reported $ 0.67 $ 0.40 $ 3.30 $ 2.13 Item 1 # Partial Payment (0.01) (1.5%) (1.5%) (0.01) (2.5%) (2.6%) (0.04) (1.2%) (1.2%) (0.02) (0.9%) (0.9%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections (0.01) (1.5%) (1.5%) (0.01) (2.5%) (2.6%) (0.04) (1.2%) (1.2%) (0.02) (0.9%) (0.9%) EPS (diluted), as corrected $ 0.66 $ 0.39 $ 3.26 $ 2.11 Page 2 of 7
![slide3](https://capedge.com/proxy/CORRESP/0001580608-18-000080/exhibitbimpactoftdrnonac003.jpg)
Balance Sheet (Iron Curtain Method) As of % of % of As of % of % of As of % of % of 06/30/2018 reported corrected 03/31/2018 reported corrected 12/31/2017 reported corrected Finance receivables held for investment, as reported $ 24,096,770 $ 22,587,358 $ 22,427,769 Item 1 # Partial Payment (14,487) (0.1%) (0.1%) (15,201) (0.1%) (0.1%) (17,411) (0.1%) (0.1%) Item 2 # TDR nonaccrual (25,119) (0.1%) (0.1%) (20,511) (0.1%) (0.1%) (16,071) (0.1%) (0.1%) Total corrections (39,606) (0.2%) (0.2%) (35,712) (0.2%) (0.2%) (33,483) (0.1%) (0.1%) Finance receivables held for investment, as corrected $ 24,057,164 $ 22,551,646 $ 22,394,286 Accrued interest receivable, as reported $ 286,164 $ 269,258 $ 326,640 Item 1 # Partial Payment (1,461) (0.5%) (0.5%) (1,247) (0.5%) (0.4%) (2,094) (0.6%) (0.6%) Item 2 # TDR nonaccrual 25,119 8.8% 8.1% 20,511 7.6% 7.1% 16,071 4.9% 4.7% Total corrections 23,658 8.3% 7.6% 19,264 7.2% 6.7% 13,978 4.3% 4.1% Accrued interest receivable, as corrected $ 309,822 $ 288,522 $ 340,618 Total assets, as reported $ 41,173,136 $ 40,045,188 $ 39,422,304 Item 1 # Partial Payment (15,947) (0.0%) (0.0%) (16,448) (0.0%) (0.0%) (19,505) (0.0%) (0.0%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections (15,947) (0.0%) (0.0%) (16,448) (0.0%) (0.0%) (19,505) (0.0%) (0.0%) Total assets, as corrected $ 41,157,189 $ 40,028,740 $ 39,402,799 Total liabilities, as reported $ 34,127,402 $ 33,319,173 $ 32,941,803 Item 1 # Partial Payment (3,651) (0.0%) (0.0%) (3,146) (0.0%) (0.0%) (6,827) (0.0%) (0.0%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections (3,651) (0.0%) (0.0%) (3,146) (0.0%) (0.0%) (6,827) (0.0%) (0.0%) Total liabilities, as corrected $ 34,123,751 $ 33,316,027 $ 32,934,976 Total equity, as reported $ 7,045,734 $ 6,726,015 $ 6,480,501 Item 1 # Partial Payment (12,296) (0.2%) (0.2%) (13,302) (0.2%) (0.2%) (12,678) (0.2%) (0.2%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections (12,296) (0.2%) (0.2%) (13,302) (0.2%) (0.2%) (12,678) (0.2%) (0.2%) Total equity, as corrected $ 7,033,438 $ 6,712,713 $ 6,467,823 As of % of % of As of % of % of As of % of % of As of % of % of 09/30/2017 reported corrected 06/30/2017 reported corrected 03/31/2017 reported corrected 12/31/2016 reported corrected Finance receivables held for investment, as reported $ 22,667,203 $ 23,634,914 $ 23,444,625 $ 23,481,001 Item 1 # Partial Payment (17,643) (0.1%) (0.1%) (16,074) (0.1%) (0.1%) (5,777) (0.0%) (0.0%) (6,170) (0.0%) (0.0%) Item 2 # TDR nonaccrual (11,568) (0.1%) (0.1%) (5,091) (0.0%) (0.0%) (3,597) (0.0%) (0.0%) - 0.0% 0.0% Total corrections (29,211) (0.1%) (0.1%) (21,165) (0.1%) (0.1%) (9,373) (0.0%) (0.0%) (6,170) (0.0%) (0.0%) Finance receivables held for investment, as corrected $ 22,637,992 $ 23,613,749 $ 23,435,252 $ 23,474,831 Accrued interest receivable, as reported $ 330,554 $ 330,710 $ 306,742 $ 373,274 Item 1 # Partial Payment (1,824) (0.6%) (0.5%) (2,068) (0.6%) (0.6%) (1,473) (0.5%) (0.5%) (2,268) (0.6%) (0.6%) Item 2 # TDR nonaccrual 11,568 3.5% 3.4% 5,091 1.5% 1.5% 3,597 1.2% 1.2% - 0.0% 0.0% Total corrections 9,744 2.9% 2.9% 3,023 0.9% 0.9% 2,123 0.7% 0.7% (2,268) (0.6%) (0.6%) Accrued interest receivable, as corrected $ 340,298 $ 333,733 $ 308,865 $ 371,006 Total assets, as reported $ 38,765,557 $ 39,507,482 $ 39,061,940 $ 38,539,104 Item 1 # Partial Payment (19,467) (0.1%) (0.1%) (18,142) (0.0%) (0.0%) (7,250) (0.0%) (0.0%) (8,438) (0.0%) (0.0%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections (19,467) (0.1%) (0.1%) (18,142) (0.0%) (0.0%) (7,250) (0.0%) (0.0%) (8,438) (0.0%) (0.0%) Total assets, as corrected $ 38,746,090 $ 39,489,340 $ 39,054,690 $ 38,530,666 Total liabilities, as reported $ 32,880,323 $ 33,828,749 $ 33,642,942 $ 33,300,485 Item 1 # Partial Payment (5,510) (0.0%) (0.0%) (6,350) (0.0%) (0.0%) (2,554) (0.0%) (0.0%) (2,866) (0.0%) (0.0%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections (5,510) (0.0%) (0.0%) (6,350) (0.0%) (0.0%) (2,554) (0.0%) (0.0%) (2,866) (0.0%) (0.0%) Total liabilities, as corrected $ 32,874,813 $ 33,822,399 $ 33,640,388 $ 33,297,619 Total equity, as reported $ 5,885,234 $ 5,678,733 $ 5,418,998 $ 5,238,619 Item 1 # Partial Payment (13,957) (0.2%) (0.2%) (11,793) (0.2%) (0.2%) (4,696) (0.1%) (0.1%) (5,572) (0.1%) (0.1%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections (13,957) (0.2%) (0.2%) (11,793) (0.2%) (0.2%) (4,696) (0.1%) (0.1%) (5,572) (0.1%) (0.1%) Total equity, as corrected $ 5,871,277 $ 5,666,940 $ 5,414,302 $ 5,233,047 Page 3 of 7
![slide4](https://capedge.com/proxy/CORRESP/0001580608-18-000080/exhibitbimpactoftdrnonac004.jpg)
Past due status disclosure and delinquency ratios: A summary of the quantitative impact of the errors to past due status disclosures and delinquency ratios is as follows (dollars in thousands): As of % of % of As of % of % of As of % of % of 06/30/2018 reported corrected 03/31/2018 reported corrected 12/31/2017 reported corrected A. Delinquencies for our retail installment contracts held for investment: Principal, 30-59 days past due, as reported 2,535,166 2,238,425 2,827,678 Item 1 # Partial Payment 80,672 3.2% 3.0% 71,921 3.2% 3.1% 115,058 4.1% 3.9% Item 2 # TDR nonaccrual 35,979 1.4% 1.4% 23,099 1.0% 1.0% 15,459 0.5% 0.5% Total corrections 116,651 4.6% 4.4% 95,020 4.2% 4.1% 130,517 4.6% 4.4% Principal, 30-59 days past due, corrected 2,651,817 2,333,445 2,958,195 Delinquent principal over 59 days, as reported 1,151,410 1,089,648 1,544,583 Item 1 # Partial Payment 63,762 5.5% 5.2% 59,533 5.5% 5.1% 90,388 5.9% 5.5% Item 2 # TDR nonaccrual 19,330 1.7% 1.6% 13,130 1.2% 1.1% 10,818 0.7% 0.7% Total corrections 83,092 7.2% 6.7% 72,663 6.7% 6.3% 101,206 6.6% 6.1% Delinquent principal over 59 days, corrected 1,234,502 1,162,311 1,645,789 Total delinquent principal, as reported 3,686,576 3,328,073 4,372,261 Item 1 # Partial Payment 144,434 3.9% 3.7% 131,454 3.9% 3.8% 205,445 4.7% 4.5% Item 2 # TDR nonaccrual 55,309 1.5% 1.4% 36,229 1.1% 1.0% 26,277 0.6% 0.6% Total corrections 199,743 5.4% 5.1% 167,683 5.0% 4.8% 231,722 5.3% 5.0% Total delinquent principal, as corrected $ 3,886,319 $ 3,495,756 $ 4,603,983 B. Delinquencies as a % of for our retail installment contracts held for investment: Principal, 30-59 days past due, as reported 9.2% 8.6% 10.9% Item 1 # Partial Payment 0.3% 3.2% 3.1% 0.3% 3.2% 3.1% 0.4% 4.1% 3.9% Item 2 # TDR nonaccrual 0.1% 0.9% 0.9% 0.1% 0.6% 0.6% 0.0% 0.3% 0.3% Total corrections 0.4% 4.1% 3.9% 0.3% 3.9% 3.7% 0.5% 4.4% 4.2% Principal, 30-59 days past due, corrected 9.6% 8.9% 11.4% Delinquent principal over 59 days, as reported 4.2% 4.2% 5.9% Item 1 # Partial Payment 0.2% 5.6% 5.2% 0.2% 5.5% 5.2% 0.3% 5.9% 5.5% Item 2 # TDR nonaccrual 0.0% 1.2% 1.1% 0.0% 0.8% 0.8% 0.0% 0.5% 0.5% Total corrections 0.3% 6.7% 6.3% 0.3% 6.3% 5.9% 0.4% 6.4% 6.0% Delinquent principal over 59 days, corrected 4.5% 4.5% 6.3% Total delinquent principal, as reported 13.5% 12.8% 16.8% Item 1 # Partial Payment 0.5% 3.9% 3.7% 0.5% 4.0% 3.8% 0.8% 4.7% 4.5% Item 2 # TDR nonaccrual 0.1% 1.0% 0.9% 0.1% 0.7% 0.7% 0.1% 0.4% 0.4% Total corrections 0.7% 4.9% 4.7% 0.6% 4.7% 4.5% 0.9% 5.1% 4.9% Total delinquent principal, as corrected 14.1% 13.4% 17.7% As of % of % of As of % of % of As of % of % of As of % of % of 09/30/2017 reported corrected 06/30/2017 reported corrected 03/31/2017 reported corrected 12/31/2016 reported corrected A. Delinquencies for our retail installment contracts held for investment: Principal, 30-59 days past due, as reported 2,580,226 2,709,606 2,345,995 2,925,503 Item 1 # Partial Payment 110,947 4.3% 4.1% 130,128 4.8% 4.6% 98,728 4.2% 4.0% 152,161 5.2% 4.9% Item 2 # TDR nonaccrual 3,157 0.1% 0.1% 3,653 0.1% 0.1% - 0.0% 0.0% - 0.0% 0.0% Total corrections 114,104 4.4% 4.2% 133,781 4.9% 4.7% 98,728 4.2% 4.0% 152,161 5.2% 4.9% Principal, 30-59 days past due, corrected 2,694,330 2,843,387 2,444,723 3,077,664 Delinquent principal over 59 days, as reported 1,464,543 1,417,461 1,153,369 1,526,743 Item 1 # Partial Payment 80,323 5.5% 5.2% 90,372 6.4% 6.0% 72,318 6.3% 5.9% 100,012 6.6% 6.1% Item 2 # TDR nonaccrual (3,743) (0.3%) (0.2%) 2,574 0.2% 0.2% - 0.0% 0.0% - 0.0% 0.0% Total corrections 76,580 5.2% 5.0% 92,946 6.6% 6.2% 72,318 6.3% 5.9% 100,012 6.6% 6.1% Delinquent principal over 59 days, corrected 1,541,123 1,510,407 1,225,687 1,626,755 Total delinquent principal, as reported 4,044,769 4,127,067 3,499,364 4,452,246 Item 1 # Partial Payment 191,270 4.7% 4.5% 220,500 5.3% 5.1% 171,046 4.9% 4.7% 252,173 5.7% 5.4% Item 2 # TDR nonaccrual (586) (0.0%) (0.0%) 6,227 0.2% 0.1% - 0.0% 0.0% - 0.0% 0.0% Total corrections 190,684 4.7% 4.5% 226,727 5.5% 5.2% 171,046 4.9% 4.7% 252,173 5.7% 5.4% Total delinquent principal, as corrected $ 4,235,453 $ 4,353,794 $ 3,670,410 $ 4,704,419 B. Delinquencies as a % of for our retail installment contracts held for investment: Principal, 30-59 days past due, as reported 9.8% 9.9% 8.6% 10.7% Item 1 # Partial Payment 0.4% 4.3% 4.1% 0.5% 4.8% 4.6% 0.4% 4.2% 4.1% 0.6% 5.2% 5.0% Item 2 # TDR nonaccrual 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% 0.0% (0.0%) (0.0%) 0.0% 0.0% 0.0% Total corrections 0.4% 4.3% 4.2% 0.5% 4.9% 4.7% 0.4% 4.2% 4.0% 0.6% 5.2% 5.0% Principal, 30-59 days past due, corrected 10.2% 10.4% 9.0% 11.3% Delinquent principal over 59 days, as reported 5.6% 5.2% 4.2% 5.6% Item 1 # Partial Payment 0.3% 5.5% 5.2% 0.3% 6.4% 6.0% 0.3% 6.3% 5.9% 0.4% 6.6% 6.2% Item 2 # TDR nonaccrual 0.0% (0.4%) (0.3%) 0.0% 0.1% 0.1% 0.0% (0.0%) (0.0%) 0.0% 0.0% 0.0% Total corrections 0.3% 5.1% 4.9% 0.3% 6.5% 6.1% 0.3% 6.3% 5.9% 0.4% 6.6% 6.2% Delinquent principal over 59 days, corrected 5.8% 5.5% 4.5% 5.9% Total delinquent principal, as reported 15.3% 15.0% 12.8% 16.3% Item 1 # Partial Payment 0.7% 4.8% 4.5% 0.8% 5.4% 5.1% 0.6% 4.9% 4.7% 0.9% 5.7% 5.4% Item 2 # TDR nonaccrual 0.0% (0.1%) (0.1%) 0.0% 0.1% 0.1% 0.0% (0.0%) (0.0%) 0.0% 0.0% 0.0% Total corrections 0.7% 4.6% 4.4% 0.8% 5.5% 5.2% 0.6% 4.9% 4.7% 0.9% 5.7% 5.4% Total delinquent principal, as corrected 16.0% 15.9% 13.5% 17.2% Page 4 of 7
![slide5](https://capedge.com/proxy/CORRESP/0001580608-18-000080/exhibitbimpactoftdrnonac005.jpg)
Nonaccrual status disclosure: A summary of the quantitative impact of the errors to nonaccrual status disclosures are as follows (dollars in thousands): As of % of % of As of % of % of As of % of % of 06/30/2018 reported corrected 03/31/2018 reported corrected 12/31/2017 reported corrected Retail installment contracts acquired individually held for investment that were placed on nonaccrual status: Non-TDR, as reported 505,399 470,674 666,926 Item 1 # Partial Payment 11,370 2.2% 2.2% 10,674 2.3% 2.2% 24,330 3.6% 3.5% Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections 11,370 2.2% 2.2% 10,674 2.3% 2.2% 24,330 3.6% 3.5% Non-TDR, as corrected 516,769 481,348 691,256 TDR, as reported 1,554,860 1,346,148 1,390,373 Item 1 # Partial Payment 47,056 3.0% 7.9% 39,207 2.9% 6.9% 59,413 4.3% 7.4% Item 2 # TDR nonaccrual (1,004,760) (64.6%) (168.3%) (820,422) (60.9%) (145.2%) (642,847) (46.2%) (79.7%) Total corrections (957,705) (61.6%) (160.4%) (781,215) (58.0%) (138.3%) (583,435) (42.0%) (72.3%) TDR, as corrected 597,155 564,933 806,938 Total nonaccrual principal, as reported 2,060,259 1,816,822 2,057,299 Item 1 # Partial Payment 58,426 2.8% 5.2% 49,881 2.7% 4.8% 83,743 4.1% 5.6% Item 2 # TDR nonaccrual (1,004,760) (48.8%) (90.2%) (820,422) (45.2%) (78.4%) (642,847) (31.2%) (42.9%) Total corrections (946,334) (45.9%) (85.0%) (770,541) (42.4%) (73.6%) (559,105) (27.2%) (37.3%) Total nonaccrual principal, as corrected 1,113,925 1,046,281 1,498,194 As of % of % of As of % of % of As of % of % of As of % of % of 09/30/2017 reported corrected 06/30/2017 reported corrected 03/31/2017 reported corrected 12/31/2016 reported corrected Retail installment contracts acquired individually held for investment that were placed on nonaccrual status: This disclosure was introduced in Q4' 2017 Non-TDR, as reported 664,966 648,937 523,793 721,150 Item 1 # Partial Payment 26,240 3.9% 3.8% 35,340 5.4% 5.2% 27,782 5.3% 5.0% 44,859 6.2% 5.9% Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections 26,240 3.9% 3.8% 35,340 5.4% 5.2% 27,782 5.3% 5.0% 44,859 6.2% 5.9% Non-TDR, as corrected 691,207 684,277 551,575 766,009 TDR, as reported 1,140,599 844,420 669,425 665,068 Item 1 # Partial Payment 46,732 4.1% 6.4% 47,386 5.6% 6.9% 31,155 4.7% 5.6% 45,876 6.9% 6.5% Item 2 # TDR nonaccrual (462,714) (40.6%) (63.9%) (203,635) (24.1%) (29.6%) (143,873) (21.5%) (25.8%) - 0.0% 0.0% Total corrections (415,981) (36.5%) (57.4%) (156,249) (18.5%) (22.7%) (112,718) (16.8%) (20.2%) 45,876 6.9% 6.5% TDR, as corrected 724,618 688,170 556,707 710,944 Total nonaccrual principal, as reported 1,805,566 1,493,357 1,193,218 1,386,218 Item 1 # Partial Payment 72,973 4.0% 5.2% 82,726 5.5% 6.0% 58,937 4.9% 5.3% 90,735 6.5% 6.1% Item 2 # TDR nonaccrual (462,714) (25.6%) (32.7%) (203,635) (13.6%) (14.8%) (143,873) (12.1%) (13.0%) - 0.0% 0.0% Total corrections (389,741) (21.6%) (27.5%) (120,909) (8.1%) (8.8%) (84,936) (7.1%) (7.7%) 90,735 6.5% 6.1% Total nonaccrual principal, as corrected 1,415,825 1,372,447 1,108,282 1,476,953 Page 5 of 7
![slide6](https://capedge.com/proxy/CORRESP/0001580608-18-000080/exhibitbimpactoftdrnonac006.jpg)
Allowance ratio: As of % of % of As of % of % of As of % of % of 06/30/2018 reported corrected 03/31/2018 reported corrected 12/31/2017 reported corrected Allowance ratio for TDR and non-TDR individually acquired retail installment contracts: TDR - allowance ratio, as reported 25.1% 26.6% 27.6% Item 1 # Partial Payment 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.1% 0.2% 0.2% Item 2 # TDR nonaccrual 2.2% 8.7% 8.0% 1.5% 5.8% 5.5% 1.0% 3.5% 3.3% Total corrections 2.2% 8.8% 8.1% 1.5% 5.8% 5.5% 1.0% 3.7% 3.6% TDR - allowance ratio, as corrected 27.3% 28.1% 28.6% Non-TDR - allowance ratio, as reported 7.7% 7.9% 7.8% Item 1 # Partial Payment 0.0% 0.2% 0.2% 0.1% 1.1% 1.1% 0.0% 0.3% 0.3% Item 2 # TDR nonaccrual 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total corrections 0.0% 0.2% 0.2% 0.1% 1.1% 1.1% 0.0% 0.3% 0.3% Non-TDR - allowance ratio, as corrected 7.7% 8.0% 7.8% Total allowance ratio, as reported 11.5% 12.2% 12.6% Item 1 # Partial Payment 0.0% 0.0% 0.0% 0.1% 0.7% 0.7% 0.0% 0.1% 0.1% Item 2 # TDR nonaccrual 0.5% 4.5% 4.3% 0.5% 3.8% 3.6% 0.2% 1.8% 1.7% Total corrections 0.5% 4.5% 4.3% 0.5% 4.5% 4.3% 0.2% 1.9% 1.8% Total allowance ratio, as corrected 12.0% 12.7% 12.8% As of % of % of As of % of % of As of % of % of As of % of % of 09/30/2017 reported corrected 06/30/2017 reported corrected 03/31/2017 reported corrected 12/31/2016 reported corrected Allowance ratio for TDR and non-TDR individually acquired retail installment contracts: TDR - allowance ratio, as reported 28.4% 28.7% 27.7% 28.8% Item 1 # Partial Payment 0.0% 0.0% 0.0% 0.0% (0.0%) (0.0%) 0.0% 0.1% 0.1% 0.0% (0.0%) (0.0%) Item 2 # TDR nonaccrual 0.5% 1.8% 1.7% 0.2% 0.8% 0.8% 0.1% 0.5% 0.5% 0.0% (0.1%) (0.1%) Total corrections 0.5% 1.8% 1.8% 0.2% 0.7% 0.7% 0.2% 0.6% 0.6% 0.0% -0.1% -0.1% TDR - allowance ratio, as corrected 28.9% 28.9% 27.9% 28.8% Non-TDR - allowance ratio, as reported 7.9% 8.2% 8.6% 8.4% Item 1 # Partial Payment 0.1% 1.0% 1.0% 0.1% 1.1% 1.1% 0.0% 0.3% 0.3% 0.0% (0.5%) (0.5%) Item 2 # TDR nonaccrual 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total corrections 0.1% 1.0% 1.0% 0.1% 1.1% 1.1% 0.0% 0.3% 0.3% 0.0% -0.5% -0.5% Non-TDR - allowance ratio, as corrected 8.0% 8.3% 8.6% 8.4% Total allowance ratio, as reported 12.8% 12.7% 12.7% 12.6% Item 1 # Partial Payment 0.1% 0.4% 0.4% 0.0% (0.0%) (0.0%) 0.0% 0.1% 0.1% 0.0% (0.2%) (0.2%) Item 2 # TDR nonaccrual 0.1% 1.2% 1.1% 0.0% 0.1% 0.1% 0.0% 0.3% 0.3% 0.0% (0.2%) (0.2%) Total corrections 0.2% 1.6% 1.5% 0.0% 0.1% 0.1% 0.1% 0.4% 0.4% 0.0% -0.4% -0.4% Total allowance ratio, as corrected 13.0% 12.7% 12.8% 12.6% Net charge-off ratio: For the three For the three For the three months ended % of % of months ended % of % of months ended % of % of 06/30/2018 reported corrected 06/30/2017 reported corrected 03/31/2018 reported corrected Net Charge-off ratio, as reported 6.0% 7.5% 8.3% Item 2 # TDR nonaccrual 0.1% 1.4% 1.4% 0.0% 0.0% 0.0% 0.1% 0.8% 0.8% Net Charge-off ratio, as corected 6.1% 7.5% 8.4% For the three For the three 12 months months ended % of % of months ended % of % of ended % of % of 03/31/2017 reported corrected 09/30/2017 reported corrected 12/31/2017 reported corrected Net Charge-off ratio, as reported 8.8% 9.1% 8.9% Item 2 # TDR nonaccrual 0.0% 0.0% 0.0% 0.0% 0.2% 0.2% 0.0% 0.0% 0.0% Net Charge-off ratio, as corected 8.8% 9.1% 8.9% Page 6 of 7
![slide7](https://capedge.com/proxy/CORRESP/0001580608-18-000080/exhibitbimpactoftdrnonac007.jpg)
Other Disclosures: Management noted that this change would have impacted certain footnote disclosures, as follows: As of % of % of As of % of % of As of % of % of 06/30/2018 reported corrected 03/31/2018 reported corrected 12/31/2017 reported corrected TDR impairment*, as reported $ 1,496,580 $ 1,595,465 $ 1,731,320 Item 1 # Partial Payment - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Item 2 # TDR nonaccrual 167,642 11.2% 10.1% 120,667 7.6% 7.0% 72,812 4.2% 4.0% Total corrections 167,642 11.2% 10.1% 120,667 7.6% 7.0% 72,812 4.2% 4.0% TDR impairment*, as corrected $ 1,664,222 $ 1,716,132 $ 1,804,132 Non-TDR allowance*, as reported $ 1,641,214 $ 1,586,557 $ 1,529,815 Item 1 # Partial Payment 10,500 0.6% 0.6% 10,500 0.7% 0.7% 10,500 0.7% 0.7% Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections 10,500 0.6% 0.6% 10,500 0.7% 0.7% 10,500 0.7% 0.7% Non-TDR allowance*, as corrected $ 1,651,714 $ 1,597,057 $ 1,540,315 Recorded investment in TDRs, net of impairment*, as reported $ 4,435,629 $ 4,382,717 $ 4,530,112 Item 1 # Partial Payment (3,983) (0.1%) (0.1%) (4,026) (0.1%) (0.1%) (6,085) (0.1%) (0.1%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections (3,983) (0.1%) (0.1%) (4,026) (0.1%) (0.1%) (6,085) (0.1%) (0.1%) Recorded investment in TDRs, net of impairment*, as corrected $ 4,431,646 $ 4,378,691 $ 4,524,027 Allowance*, as reported $ 3,137,794 $ 3,182,022 $ 3,261,135 Item 1 # Partial Payment 10,500 0.3% 0.3% 10,500 0.3% 0.3% 10,500 0.3% 0.3% Item 2 # TDR nonaccrual 167,642 5.3% 5.1% 120,667 3.8% 3.6% 72,812 2.2% 2.2% Total corrections 178,142 5.7% 5.4% 131,167 4.1% 4.0% 83,312 2.6% 2.5% Allowance*, as corrected $ 3,315,936 $ 3,313,189 $ 3,344,447 Retail installment contracts acquired individually, as reported $ 24,039,237 $ 22,526,948 $ 22,362,509 Item 1 # Partial Payment (14,487) (0.1%) (0.1%) (15,201) (0.1%) (0.1%) (17,411) (0.1%) (0.1%) Item 2 # TDR nonaccrual (25,119) (0.1%) (0.1%) (20,511) (0.1%) (0.1%) (16,071) (0.1%) (0.1%) Total corrections (39,606) (0.2%) (0.2%) (35,712) (0.2%) (0.2%) (33,483) (0.1%) (0.1%) Retail installment contracts acquired individually, as corrected $ 23,999,631 $ 22,491,236 $ 22,329,026 * On retail installment contracts acquired individually As of % of % of As of % of % of As of % of % of As of % of % of 09/30/2017 reported corrected 06/30/2017 reported corrected 03/31/2017 reported corrected 12/31/2016 reported corrected TDR impairment*, as reported $ 1,782,114 $ 1,686,159 $ 1,604,489 $ 1,611,295 Item 1 # Partial Payment - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Item 2 # TDR nonaccrual 40,400 2.3% 2.2% 18,337 1.1% 1.1% 8,033 0.5% 0.5% - 0.0% 0.0% Total corrections 40,400 2.3% 2.2% 18,337 1.1% 1.1% 8,033 0.5% 0.5% - 0.0% 0.0% TDR impairment*, as corrected $ 1,822,514 $ 1,704,496 $ 1,612,522 $ 1,611,295 Non-TDR allowance*, as reported $ 1,589,151 $ 1,760,809 $ 1,836,730 $ 1,799,760 Item 1 # Partial Payment 10,500 0.7% 0.7% 10,500 0.6% 0.6% - 0.0% 0.0% - 0.0% 0.0% Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% Total corrections 10,500 0.7% 0.7% 10,500 0.6% 0.6% - 0.0% 0.0% - 0.0% 0.0% Non-TDR allowance*, as corrected $ 1,599,651 $ 1,771,309 $ 1,836,730 $ 1,799,760 Recorded investment in TDRs, net of impairment*, as reported $ 4,548,217 $ 4,225,079 $ 4,180,543 $ 4,026,497 Item 1 # Partial Payment (5,501) (0.1%) (0.1%) (4,452) (0.1%) (0.1%) (3,964) (0.1%) (0.1%) (4,870) (0.1%) (0.1%) Item 2 # TDR nonaccrual - 0.0% 0.0% - 0.0% 0.0% 8,033 0.2% 0.2% - 0.0% 0.0% Total corrections (5,501) (0.1%) (0.1%) (4,452) (0.1%) (0.1%) 4,069 0.1% 0.1% (4,870) (0.1%) (0.1%) Recorded investment in TDRs, net of impairment*, as corrected $ 4,542,716 $ 4,220,627 $ 4,184,612 $ 4,021,627 Allowance*, as reported $ 3,371,265 $ 3,446,968 $ 3,441,219 $ 3,411,055 Item 1 # Partial Payment 10,500 0.3% 0.3% 10,500 0.3% 0.3% - 0.0% 0.0% - 0.0% 0.0% Item 2 # TDR nonaccrual 40,400 1.2% 1.2% 18,337 0.5% 0.5% 8,033 0.2% 0.2% - 0.0% 0.0% Total corrections 50,900 1.5% 1.5% 28,837 0.8% 0.8% 8,033 0.2% 0.2% - 0.0% 0.0% Allowance*, as corrected $ 3,422,165 $ 3,475,805 $ 3,449,252 $ 3,411,055 Retail installment contracts acquired individually, as reported $ 22,599,161 $ 23,410,227 $ 23,200,111 $ 23,219,724 Item 1 # Partial Payment (17,643) (0.1%) (0.1%) (16,074) (0.1%) (0.1%) (5,777) (0.0%) (0.0%) (6,170) (0.0%) (0.0%) Item 2 # TDR nonaccrual (11,568) (0.1%) (0.1%) (5,091) (0.0%) (0.0%) (3,597) (0.0%) (0.0%) - 0.0% 0.0% Total corrections (29,211) (0.1%) (0.1%) (21,165) (0.1%) (0.1%) (9,373) (0.0%) (0.0%) (6,170) (0.0%) (0.0%) Retail installment contracts acquired individually, as corrected $ 22,569,950 $ 23,389,062 $ 23,190,738 $ 23,213,554 * On retail installment contracts acquired individually Page 7 of 7