Nicholas Financial has outlined expansion plans for its direct loan product and branch network, according to a Nov. 14 SEC filing.
Nicholas plans to roll out its direct loan product in Indiana, Missouri, South Carolina and Kentucky this quarter, according to the filing. “We remain focused on proliferating our direct loan product to all of the states in which we operate,” said President Doug Marohn in a press release. Clearwater, Fla.-based Nicholas has a 15-state footprint.
Even with the expansion, Nicholas expects its direct loan portfolio to remain between 2% and 10% of its total portfolio “for the foreseeable future.”
Meanwhile, Nicholas has added three branches to its network, including new offices in Columbia, S.C.; Wichita, Kan.; and Milwaukee, Wis. The nonprime lender is also exploring branch expansion into Arizona, Iowa, Nevada and Utah.
The expansion comes on the heels of an April 30 acquisition of Metrolina Credit, which operates in North and South Carolina. “This acquisition represents the company’s first bulk purchase of contracts in more than two decades,” the filing said. “If other opportunities arise, the company may consider possible acquisitions of portfolios of seasoned contracts from dealers or lenders in bulk transactions as a means of further penetrating its existing markets or expanding its presence in targeted geographic locations.”
Nicholas earned $0.3 million for the quarter that ended Sept. 30, down from $0.6 million in the prior-year period. It originated $23.1 million of loans last quarter, up 17.5% year over year.
Separately, Nicholas appointed Irina Nashtatik as interim chief financial officer to replace Kelly Malson, who chose not to renew her employment contract. Malson’s last day is today.
With 15 years of industry experience, Nashtatik has been with the company since April 2018, most recently serving as vice president of finance and earlier as corporate controller. Nicholas is conducting a search for a permanent replacement.
