PRA Group Reports First Quarter 2016 Results

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PRA Investorroom

NORFOLK, Va., May 09, 2016 -- PRA Group (Nasdaq:PRAA), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the first quarter of 2016. The company reported diluted earnings per share of $0.69 versus $1.19 in the first quarter of 2015. Non-GAAP diluted earnings per share of $0.85 for the first quarter of 2016 compared to $1.22 for the year-ago quarter. Non-GAAP financial results are presented in constant currency with the first quarter of 2015 and exclude items unrelated to normal operations. A reconciliation of all non-GAAP financial measures to the most directly comparable GAAP financial measure can be found at the end of this press release.

First Quarter Highlights

Estimated remaining collections at a new record of $5.3 billion.
Cash collections of $384.3 million, currency adjusted cash collections of $389.7 million.
Revenues of $224.9 million, currency adjusted revenues of $228.6 million.
Income from operations of $70.9 million, non-GAAP income from operations of $74.4 million.
Net income of $32.0 million, non-GAAP net income of $39.5 million.
Return on average equity, annualized, of 15.4%, non-GAAP return on average equity, annualized, of 18.9%.
$336.8 million in investments.

"Broadly speaking, cash results from our global operations were generally in line with our internally forecasted expectations. Globally, our buying in Q1 was quite strong as we invested $337 million in the quarter. This enabled us to grow estimated remaining collections to a record $5.3 billion," said Steve Fredrickson, chairman and chief executive officer, PRA Group. "Our strategy going forward continues to be taking advantage of our access to low cost capital, low operating costs, scale and underwriting prowess and pressing those advantages in every market in which we operate."

REVENUES AND CASH COLLECTIONS

Total revenues of $224.9 million in the first quarter included finance receivables income net of principal amortization and net allowance charges versus $245.2 million in the year-ago quarter. Currency adjusted total revenues for the quarter were $228.6 million versus $245.2 million in year-ago quarter.
Cash collections were $384.3 million versus $399.7 million in the year-ago quarter. Currency adjusted cash collections were $389.7 million versus $399.7 million in the year-ago quarter. Both GAAP and currency adjusted cash collections are reported below and included collections from these finance receivables sources:


Cash Collection Source		2016		2015
($ in thousands)	Q1		Q4		Q3		Q2		Q1
Americas-Core	$	219,571	$	195,834	$	210,725	$	218,838	$	219,371
Americas-Insolvency		68,646		73,843		81,865		92,974		95,533
Europe-Core		94,091		97,149		85,635		76,602		83,876
Europe-Insolvency		2,025		2,545		2,528		1,210		967
Total Cash Collections	$	384,333	$	369,371	$	380,753	$	389,624	$	399,747

Cash Collection Source -
Constant Currency Adjusted		2016								2015
($ in thousands)	Q1								Q1
Americas-Core	$	221,268							$	219,371
Americas-Insolvency		68,646								95,533
Europe-Core		97,721								83,876
Europe-Insolvency		2,025								967
Total Cash Collections	$	389,660							$	399,747

Principal amortization of finance receivables in the first quarter was $177.8 million or 46.3% of cash collections, compared with $171.3 million or 42.9% in the year-ago quarter. Principal amortization included a net allowance charge of $9.9 million recorded against certain pools of finance receivables in the quarter, compared with a net allowance charge of $1.6 million recorded in the year-ago quarter. Currency adjusted principal amortization was $180.4 million in the first quarter of 2016. Principal amortization was negatively impacted by placing several portfolios in Europe on non-accrual which applies all cash collections to amortization.
Revenues in the first quarter also included income from PRA Group's fee-based businesses of $16.3 million, compared with $13.1 million in the year-ago quarter, and other income of $2.1 million compared with $3.8 million in the year-ago quarter.

EXPENSES AND OPERATING INCOME

Operating expenses were $154.0 million in the first quarter, compared with $149.0 million a year ago. Non-GAAP operating expenses, which in addition to being currency adjusted exclude costs not associated with normal operations, were $154.2 million versus $146.7 million a year ago.
Operating income in the first quarter was $70.9 million, compared with $96.2 million in the year-ago quarter. Non-GAAP operating income, which in addition to being currency adjusted excludes costs not associated with normal operations, was $74.4 million in the first quarter versus $98.5 million a year ago. The operating margin was 31.5% in the first quarter and the non-GAAP operating margin was 32.5%.
The provision for income taxes was $16.2 million in the first quarter compared to $30.0 million in the year-ago quarter. PRA Group's provision for income taxes was 33.1% of income before taxes in the first quarter, compared with 34.1% in the year-ago quarter. Non-GAAP provision for income taxes in the first quarter was $20.1 million versus $30.6 million a year ago.

PORTFOLIO ACQUISITIONS

PRA Group invested $336.8 million in new finance receivables in the first quarter.


Portfolio Purchase Source		2016		2015
($ in thousands)	Q1		Q4		Q3		Q2		Q1
Americas-Core	$	136,057	$	120,554	$	90,912	$	98,317	$	138,498
Americas-Insolvency		22,952		20,589		9,300		19,111		16,437
Europe-Core (1)		172,557		79,735		240,385		88,499		21,579
Europe-Insolvency		5,212		4,976		3,959		2,450		8,510
Total Portfolio Purchasing	$	336,778	$	225,854	$	344,556	$	208,377	$	185,024


(1) Excludes the $27.9 million investment in the securitized fund in Poland during the three months ended March 31, 2015.

BALANCE SHEET

Borrowings totaled $1,896.4 million as of March 31, 2016, consisting of $544.0 million drawn on the domestic and Canadian revolver, $758.3 million drawn on the multi-currency revolver, $266.2 million in convertible senior notes, $170.0 million in other long-term debt and $165.0 million in notes payable. Total borrowings were $1,479.3 million as of March 31, 2015.
Cash and cash equivalents were $79.4 million as of March 31, 2016, compared with $40.5 million as of March 31, 2015.
Net deferred tax liabilities were $269.2 million as of March 31, 2016, compared with $265.7 million as of March 31, 2015.
Equity attributable to PRA Group, Inc. was $864.9 million as of March 31, 2016, compared with $817.3 million as of March 31, 2015.

Conference Call Information
PRA Group will hold a conference call today at 5:00 p.m. ET to discuss results with institutional investors and stock analysts. To listen to a webcast of the call, visit http://ir.pragroup.com/events.cfm. To listen by phone, call 888-695-7639 in the U.S. or 970-315-0482 outside the U.S. The conference ID is 3106779. To listen to a replay of the call until May 16, 2016, call 855-859-2056 in the U.S. or 404-537-3406 outside the U.S. and use conference ID 3106779.

About PRA Group
As a global leader in acquiring and collecting nonperforming loans, PRA Group (Nasdaq:PRAA) returns capital to banks and other creditors to help expand financial services for consumers in the Americas and Europe. PRA Group companies collaborate with customers to help them resolve their debt and provide a broad range of additional revenue and recovery services to business and government clients.

PRA has been recognized as one of Fortune's 100 Fastest-Growing Companies for three years and one of Forbes' Best Small Companies in America for eight consecutive years since 2007. For more information, please visit www.pragroup.com.

About Forward Looking Statements
Statements made herein which are not historical in nature, including PRA Group's or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA Group's future operations and financial and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that our expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including risk factors and other risks that are described from time to time in PRA Group's filings with the Securities and Exchange Commission including but not limited to PRA Group's annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, which are available through PRA Group's website and contain a detailed discussion of PRA Group's business, including risks and uncertainties that may affect future results.

Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this press release may be superseded by recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. Except as required by law, PRA assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group's expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.

PRA Group, Inc.
Unaudited Consolidated Income Statements
(in thousands, except per share amounts)

				Three Months Ended
				March 31,
					2016			2015

Revenues:
	Income recognized on finance receivables, net			$	206,507		$	228,403
	Fee income				16,266			13,053
	Other revenue				2,109			3,750
		Total revenues			224,882			245,206

Operating expenses:
	Compensation and employee services				66,765			65,271
	Legal collection fees				12,950			13,691
	Legal collection costs				17,182			20,854
	Agency fees				10,884			8,261
	Outside fees and services				15,808			12,797
	Communication				9,882			10,418
	Rent and occupancy				3,796			3,560
	Depreciation and amortization				6,070			4,610
	Other operating expenses				10,651			9,578
		Total operating expenses			153,988			149,040
		Income from operations			70,894			96,166

Other income and (expense):
	Interest expense				(19,959	)		(14,776	)
	Foreign exchange gain/(loss)				(1,850	)		6,789
		Income before income taxes			49,085			88,179

		Provision for income taxes			16,232			30,044
		Net income		$	32,853		$	58,135
			Adjustment for net income attributable to noncontrolling interest		870			-
		Net income attributable to PRA Group, Inc.		$	31,983		$	58,135

Net income per common share attributable to PRA Group, Inc.:
	Basic			$	0.69		$	1.19
	Diluted			$	0.69		$	1.19

Weighted average number of shares outstanding:
	Basic				46,243			48,724
	Diluted				46,372			49,052

PRA Group, Inc.
Unaudited Consolidated Balance Sheets
(in thousands)

						March 31,			December 31,
ASSETS							2016			2015

Cash and cash equivalents						$	79,442		$	71,372
Investments							71,413			73,799
Finance receivables, net							2,377,077			2,202,113
Other receivables, net							33,555			30,771
Income taxes receivable							-			1,717
Net deferred tax asset							15,571			13,068
Property and equipment, net							47,785			45,394
Goodwill							524,870			495,156
Intangible assets, net							32,154			23,788
Other assets							86,966			33,389

					Total assets	$	3,268,833		$	2,990,567

LIABILITIES AND EQUITY

Liabilities:
	Accounts payable					$	2,377		$	4,190
	Accrued expenses						95,049			95,380
	Income taxes payable						28,114			21,236
	Net deferred tax liability						269,201			261,498
	Interest-bearing deposits						55,349			46,991
	Borrowings						1,896,424			1,717,129
	Other liabilities						13,577			4,396

					Total liabilities		2,360,091			2,150,820

Equity:
		Preferred stock, par value $0.01, authorized shares, 2,000,
			issued and outstanding shares, 0				-			-
		Common stock, par value $0.01, authorized shares, 100,000, issued
			and outstanding shares, 46,328 at March 31, 2016; 100,000
			authorized shares, 46,173 issued and outstanding shares at				463			462
			December 31, 2015
		Additional paid-in capital					64,287			64,622
		Retained earnings					996,253			964,270
		Accumulated other comprehensive loss					(196,135	)		(228,861	)
			Total stockholders' equity - PRA Group, Inc.				864,868			800,493
				Noncontrolling interest			43,874			39,254
				Total equity			908,742			839,747
					Total liabilities and total equity	$	3,268,833		$	2,990,567

PRA Group, Inc.
FINANCIAL HIGHLIGHTS
	As of and for the
	Three Months Ended March 31,
		2016			2015		Change
EARNINGS (in thousands)
Income recognized on finance receivables, net	$	206,507		$	228,403			-10	%
Fee income		16,266			13,053			25	%
Other revenue		2,109			3,750			-44	%
Total revenues		224,882			245,206			-8	%
Operating expenses		153,988			149,040			3	%
Income from operations		70,894			96,166			-26	%
Net interest expense		19,959			14,776			35	%
Net income		32,853			58,135			-43	%
Net income attributable to PRA Group, Inc.		31,983			58,135			-45	%

PERIOD-END BALANCES (in thousands)
Cash and cash equivalents	$	79,442		$	40,542			96	%
Finance receivables, net		2,377,077			1,954,772			22	%
Goodwill and intangible assets, net		557,024			506,695			10	%
Total assets		3,268,833			2,700,613			21	%
Borrowings		1,896,424			1,479,262			28	%
Total liabilities		2,360,091			1,883,295			25	%
Total equity - PRA Group, Inc.		864,868			817,318			6	%

FINANCE RECEIVABLE INCOME (dollars in thousands)
Cash collections	$	384,333		$	399,747			-4	%
Cash collections on fully amortized pools		9,276			17,005			-45	%
Principal amortization without allowance (reversals)/charges		167,928			169,714			-1	%
Allowance (reversal)/charge		9,898			1,630			507	%
Principal amortization with allowance (reversals)/charges		177,826			171,344			4	%
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools		46.3	%		42.9	%		8	%
Excluding fully amortized pools		47.4	%		44.8	%		6	%
Allowance (reversal)/charge to period-end net finance receivables		0.4	%		0.1	%		399	%

PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)
Purchase price - Americas core	$	136,057		$	138,498			-2	%
Purchase price - Americas insolvency		22,952			16,437			40	%
Purchase price - Europe core		172,557			21,579			700	%
Purchase price - Europe insolvency		5,212			8,510			-39	%
Purchase price - total		336,778			185,024			82	%
Number of portfolios - total		139			139			0	%
ESTIMATED REMAINING COLLECTIONS (in thousands)
Estimated remaining collections - Americas core	$	2,643,410		$	2,370,086			12	%
Estimated remaining collections - Americas insolvency		421,866			577,319			-27	%
Estimated remaining collections - Europe core		2,152,403			1,619,454			33	%
Estimated remaining collections - Europe insolvency		40,938			24,838			65	%
Estimated remaining collections - total		5,258,617			4,591,697			15	%
Adjusted estimated remaining collections (7)		5,366,417			4,716,230			14	%

SHARE DATA (share amounts in thousands)
Net income per common share - diluted	$	0.69		$	1.19			-42	%
Weighted average number of shares outstanding - diluted		46,372			49,052			-5	%
Shares repurchased		-			1,478			-100	%
Average price paid per share repurchased (including acquisitions costs)	$	-		$	52.65			-100	%
Closing market price	$	29.39		$	54.32			-46	%

RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (1)		15.4	%		30.1	%		-49	%
Return on revenue (2)		14.6	%		23.7	%		-38	%
Return on average assets (3)		4.1	%		8.7	%		-53	%
Operating margin (4)		31.5	%		39.2	%		-20	%
Operating expense to cash receipts (5)		38.4	%		36.1	%		6	%
Debt to stockholders' equity (6)		219.3	%		181.0	%		21	%
Number of full-time equivalent collectors		2,103			2,395			-12	%
Number of full-time equivalent employees		3,748			3,847			-3	%
Cash receipts (5)	$	400,599		$	412,800			-3	%
Line of credit - unused portion at period end		435,709			323,812			35	%

(1) Calculated as annualized net income divided by average equity for the period
(2) Calculated as net income divided by total revenues
(3) Calculated as annualized net income divided by average assets for the period
(4) Calculated as income from operations divided by total revenues
(5) "Cash receipts" is defined as cash collections plus fee income
(6) For purposes of this ratio, "debt" equals borrowings
(7) Equals total estimated remaining collections on our owned finance receivable portfolios plus the estimated remaining collections on certain of our other investments.

PRA Group, Inc.
FINANCIAL HIGHLIGHTS
	For the Quarter Ended
	March 31			December 31			September 30			June 30			March 31
		2016			2015			2015			2015			2015
EARNINGS (in thousands)
Income recognized on finance receivables, net	$	206,507		$	208,471		$	208,184		$	220,064		$	228,403
Fee income		16,266			19,649			17,803			13,878			13,053
Other revenue		2,109			2,065			3,443			3,255			3,750
Total revenues		224,882			230,185			229,430			237,197			245,206
Operating expenses		153,988			159,013			175,303			148,318			149,040
Income from operations		70,894			71,172			54,127			88,879			96,166
Net interest expense		19,959			15,321			16,787			13,452			14,776
Net income		32,853			40,988			17,583			51,425			58,135
Net income attributable to PRA Group, Inc.		31,983			40,970			17,396			51,425			58,135

PERIOD-END BALANCES (in thousands)
Cash and cash equivalents	$	79,442		$	71,372		$	69,111		$	56,811		$	40,542
Finance receivables, net		2,377,077			2,202,113			2,167,178			2,012,552			1,954,772
Goodwill and intangible assets, net		557,024			518,944			502,383			512,451			506,695
Total assets		3,268,833			2,990,567			2,984,550			2,783,756			2,700,613
Borrowings		1,896,424			1,717,129			1,654,457			1,503,363			1,479,262
Total liabilities		2,360,091			2,150,820			2,083,131			1,885,880			1,883,295
Total equity - PRA Group, Inc.		864,868			800,493			863,517			897,876			817,318

FINANCE RECEIVABLE COLLECTIONS (dollars in thousands)
Cash collections	$	384,333		$	369,371		$	380,753		$	389,624		$	399,747
Cash collections on fully amortized pools		9,276			8,280			11,453			15,162			17,005
Principal amortization without allowance (reversals)/charges		167,928			149,381			161,234			164,675			169,714
Allowance (reversal)/charge		9,898			11,519			11,335			4,885			1,630
Principal amortization with allowance (reversals)/charges		177,826			160,900			172,569			169,560			171,344
Principal amortization w/ allowance charges as % of cash collections:
Including fully amortized pools		46.3	%		43.6	%		45.3	%		43.5	%		42.9	%
Excluding fully amortized pools		47.4	%		44.6	%		46.7	%		45.3	%		44.8	%
Allowance (reversal)/charge to period-end net finance receivables		0.4	%		0.5	%		0.5	%		0.2	%		0.1	%

PURCHASES OF FINANCE RECEIVABLES (dollars in thousands)
Purchase price - North America core	$	136,057		$	120,554		$	90,912		$	98,317		$	138,498
Purchase price - North America insolvency		22,952			20,589			9,300			19,111			16,437
Purchase price - Europe core		172,557			79,735			240,385			88,499			21,579
Purchase price - Europe insolvency		5,212			4,976			3,959			2,450			8,510
Purchase price - total		336,778			225,854			344,556			208,377			185,024
Number of portfolios - total		139			139			128			136			139
ESTIMATED REMAINING COLLECTIONS (in thousands)
Estimated remaining collections - Americas core	$	2,643,410		$	2,558,529		$	2,421,506		$	2,384,698		$	2,370,086
Estimated remaining collections - Americas insolvency		421,866			448,652			474,097			529,892			577,319
Estimated remaining collections - Europe core		2,152,403			1,964,763			1,903,226			1,685,694			1,619,454
Estimated remaining collections - Europe insolvency		40,938			34,878			30,081			26,807			24,838
Estimated remaining collections - total		5,258,617			5,006,822			4,828,910			4,627,091			4,591,697
Adjusted estimated remaining collections (7)		5,366,417			5,114,923			4,945,609			4,747,552			4,716,230

SHARE DATA (share amounts in thousands)
Net income per common share - diluted	$	0.69		$	0.86		$	0.36		$	1.06		$	1.19
Weighted average number of shares outstanding - diluted		46,372			47,539			48,498			48,529			49,052
Shares repurchased		-			2,072			133			-			1,478
Average price paid per share repurchased (including acquisitions costs)	$	-		$	38.60		$	58.08		$	-		$	52.65
Closing market price	$	29.39		$	34.69		$	52.92		$	62.31		$	54.32

RATIOS AND OTHER DATA (dollars in thousands)
Return on average equity (1)		15.4	%		19.8	%		7.8	%		23.5	%		30.1	%
Return on revenue (2)		14.6	%		17.8	%		7.7	%		21.7	%		23.7	%
Return on average assets (3)		4.1	%		5.5	%		2.3	%		7.4	%		8.7	%
Operating margin (4)		31.5	%		30.9	%		23.6	%		37.5	%		39.2	%
Operating expense to cash receipts (5)		38.4	%		40.9	%		44.0	%		36.8	%		36.1	%
Debt to stockholders' equity (6)		219.3	%		214.5	%		191.6	%		167.4	%		181.0	%
Number of collectors		2,103			2,173			2,159			2,317			2,395
Number of full-time equivalent employees		3,748			3,799			3,715			3,820			3,847
Cash receipts (5)	$	400,599		$	389,020		$	398,556		$	403,502		$	412,800
Line of credit - unused portion at period end		435,709			446,769			393,246			547,017			323,812

(1) Calculated as annualized net income divided by average equity for the period
(2) Calculated as net income divided by total revenues
(3) Calculated as annualized net income divided by average assets for the period
(4) Calculated as income from operations divided by total revenues
(5) "Cash receipts" is defined as cash collections plus fee income
(6) For purposes of this ratio, "debt" equals borrowings
(7) Equals total estimated remaining collections on our owned finance receivable portfolios plus the estimated remaining collections on certain of our other investments.

Use of Non-GAAP Financial Measures
PRA Group, Inc. reports financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, the Company believes certain non-GAAP performance measures and ratios which exclude penalty and fees associated with the CFPB consent order, expenses associated with acquisitions, legal costs not associated with normal operations, and constant currency adjustments may provide additional meaningful comparisons between current year results and prior periods. Reconciliations from non-GAAP to the most directly comparable GAAP financial measures are provided below. These non-GAAP financial measures should be viewed in addition to, not as an alternative for reported GAAP results.

The constant currency results assume that foreign revenues and expenses are translated from foreign currencies to the U.S. Dollar at rates consistent with the prior year, and that any benefit or loss caused by foreign currency fluctuations would be consistent with the prior year. To do this the company translates the current year's income statements into U.S. Dollars using the prior year's average exchange rates and then replaces the foreign exchange gain or loss for the current year with the balance from the prior year. Finally, the company calculates the tax impact of the constant currency results to reflect the current effective tax rate of the reporting period.


Three Months Ended March 31, 2016
	Cash Collections		Amortization		Income Recognized on Finance Receivables, net		Fee Income		Other Revenue		Total Revenues		Expenses			Income from Operations		Income before Income Taxes		Provision for Income Taxes		Net Income attributable to PRA Group, Inc.		Diluted EPS
As Reported	$	384,333	$	177,826	$	206,507	$	16,266	$	2,109	$	224,882	$	153,988		$	70,894	$	49,085	$	16,232	$	31,983	$	0.69
Adjustments:
CFPB expenses including penalty and redress		-		-		-		-		-		-		(52	)		52		52		18		34		-
Acquisition-related expenses		-		-		-		-		-		-		(1,034	)		1,034		1,034		355		679		0.01
Legal costs not associated with normal operations		-		-		-		-		-		-		(435	)		435		435		149		286		0.01
Constant currency adjustments		5,327		2,539		2,788		494		413		3,695		1,731			1,964		10,054		3,325		6,515		0.14
Subtotal of adjustments		5,327		2,539		2,788		494		413		3,695		210			3,485		11,575		3,847		7,514		0.16
As Adjusted		389,660		180,365		209,295		16,760		2,522		228,577		154,198			74,379		60,660		20,079		39,497		0.85


Three Months Ended March 31, 2015
	Cash Collections		Amortization		Income Recognized on Finance Receivables, net		Fee Income		Other Revenue		Total Revenues		Expenses			Income from Operations		Income before Income Taxes		Provision for Income Taxes		Net Income attributable to PRA Group, Inc.		Diluted EPS
As Reported	$	399,747	$	171,344	$	228,403	$	13,053	$	3,750	$	245,206	$	149,040		$	96,166	$	88,179	$	30,044	$	58,135	$	1.19
Adjustments:
Acquisition-related expenses		-		-		-		-		-		-		(2,243	)		2,243		2,243		536		1,707		0.03
Legal costs not associated with normal operations		-		-		-		-		-		-		(125	)		125		125		30		95		-
Subtotal of adjustments		-		-		-		-		-		-		(2,368	)		2,368		2,368		566		1,802		0.03
As Adjusted		399,747		171,344		228,403		13,053		3,750		245,206		146,672			98,534		90,547		30,610		59,937		1.22

Three Months Ended March 31, 2016
	Net Income		Average Equity		Return on Average Equity, Annualized
As Reported	$	31,983	$	831,301		15.4	%

Adjustments		7,514		2,505		3.5	%

As Adjusted		39,497		833,806		18.9	%

Three Months Ended March 31, 2015
	Net Income		Average Equity		Return on Average Equity, Annualized
As Reported	$	58,135	$	772,336		30.1	%

Adjustments		1,802		600		0.9	%

As Adjusted		59,937		772,936		31.0	%

Investor Contact:
Darby Schoenfeld
Director of Investor Relations
(757) 431-7913
DCSchoenfeld@PRAGroup.com

News Media Contact:
Nancy Porter
Vice President, Corporate Communications
(757) 431-7950
NAPorter@PRAGroup.com