We are an industry leading, full-service, technology and data-driven specialty finance company, operating in the U.S. automobile finance market since April 2006. Our business is to underwrite, purchase, service, and securitize retail installment contracts, which we refer to as either retailinstallment contracts or auto loans, from automobile dealers. We service auto loans that we own, as well as auto loans owned by third parties. Through our retail installment contract purchases, we provide indirect financing for new and used vehicles, primarily to consumers with FICO® Scores of less than 660, which we refer to as non-prime consumers, with a particular focus on consumers with FICO® Scores of less than 620, which we refer to as sub-prime consumers. We serve as a source of financing for automobile dealers, facilitating vehicle sales to consumers with non-prime, including sub-prime, FICO® Scores, and as such we provide financing to underserved consumers. We believe having a personal vehicle is mission-critical for many of these consumers, particularly in serving as a means of transportation for employment, therefore consumers prioritize re-paying these auto loans.
We are led by an experienced management team, including our Chief Executive Officer, Jason Grubb, who joined us in 2016 and brings 29 years of experience in the automobile finance industry. Our management team is focused on executing our strategy of generating appropriate risk-adjusted financial returns by optimizing pricing across credit tiers, resulting in improving risk-adjusted yields and stabilizing default frequency, while gaining operating efficiency through increasing portfolio scale, enhanced automation and ongoing process optimization.
As of September 30, 2018, we had a $4.0 billion managed portfolio of retail installment contracts with an average FICO® Score at origination of 567, of which 78% was comprised of used auto loans. For the nine months ended September 30, 2018, we purchased $1.8 billion of retail installment contracts with an average FICO® Score of 568, of which 76% was comprised of used auto loans. In addition, for the nine months ended September 30, 2018, we generated $57.4 million of net income, compared to $12.1 million for the nine months ended September 30, 2017.
From retail installment contract underwriting and purchasing through servicing, our comprehensive end-to-end operating platform is rooted in technology-enabled processes that leverage our extensive automobile finance industry knowledge and non-prime consumer data. Our centralized, automated consumer credit application process, coupled with dynamic risk-adjusted pricing and predictive loss forecasting, seeks to achieve consistent risk-adjusted financial returns on a loan by loan basis. Our customized third-party model-driven underwriting technology enables us to return a credit decision to dealers typically within 30 seconds. We also employ established centralized account management policies to determine appropriate account treatment, driving efficiencies in servicing along with fair and consistent treatment of consumers.
We believe our earnings growth is evidence that our extensive data and advanced analytics enhance our retail installment contract origination, servicing and risk management operating platform. Furthermore, we believe our operating platform and associated technologies are readily scalable, efficiently supporting continued growth and providing substantial operating leverage, without compromising our credit performance.
We have a robust and diverse funding structure with established capital markets access to support our automobile finance lending operations. This includes:
• a $1.75 billion three year warehouse facility with four commercial banks;
• $8.6 billion of asset-backed term securitization (“ABS”) issuances across 19 transactions since 2012 and through September 30, 2018;
• a $175.0 million unsecured note issued in June 2018 and due in June 2023; and
• a servicing-retained forward flow sale agreement with an institutional investment group for the sale of up to $900.0 million of retail installment contracts through March 2020. ---
Exeter Finance Corporation was incorporated in the State of Delaware on July 20, 2018. We are a newly formed corporation, have no material assets and have not engaged in any business or other activities except in connection with our incorporation and with the Reorganization Transactions. Our principal executive offices are located at 222 W. Las Colinas Blvd., Suite 1800, Irving, TX 75039, our telephone number is (214) 572-8278, and the address of our website is www.exeterfinance.com.展开