Nicholas Financial Reports 4th Quarter Results & Quarterly Dividend

Nicholas Financial Reports 4th Quarter Results & Quarterly Dividend

CLEARWATER, Fla., May 9, 2013 (GLOBE NEWSWIRE) -- Nicholas Financial, Inc.
(Nasdaq:NICK) announced that for the three months ended March 31, 2013, net
earnings decreased 20% to $4,865,000 as compared to $6,045,000 for the three
months ended March 31, 2012. Per share diluted net earnings decreased 20% to
$0.40 as compared to $0.50 for the three months ended March 31, 2012. Revenue
increased 3% to $17,688,000 for the three months ended March 31, 2013 as
compared to $17,182,000 for the three months ended March 31, 2012.

For the year ended March 31, 2013, net earnings decreased 10% to $19,966,000
as compared to $22,230,000 for the year ended March 31, 2012. Per share
diluted net earnings decreased 12% to $1.63 as compared to $1.85 for the year
ended March 31, 2012. Revenue increased 4% to $70,628,000 for the year ended
March 31, 2013 as compared to $68,167,000 for the year ended March 31, 2012.

"During the three months ended March 31, 2013, our results were affected by an
increase in the net charge-off rate, an increase in operating expenses and an
increase in interest expense," stated Peter L. Vosotas, Chairman and CEO.
"Subject to market conditions, we intend to continue expanding our branch
network during the coming year."

On May 7^th the Board of Directors declared a cash dividend of $0.12 per share
on its common stock, to be paid on June 28, 2013 to shareholders of record as
of June 21, 2013. Subject to market conditions and profitability targets, the
Company anticipates it will continue to declare quarterly cash dividends in
the future, however no assurances can be given.

Nicholas Financial, Inc. is one of the largest publicly traded specialty
consumer finance companies based in the Southeastern states. The Company
presently operates 65 branch locations in both the Southeastern and the
Midwestern states. The Company has approximately 12,200,000 shares of common
stock outstanding. For an index of Nicholas Financial, Inc.'s news releases or
to obtain a specific release, visit our web site at www.nicholasfinancial.com.

Except for the historical information contained herein, the matters discussed
in this news release include forward-looking statements that involve risks and
uncertainties including general economic conditions, access to bank financing,
and other risks detailed from time to time in the Company's filings and
reports with the Securities and Exchange Commission including the Company's
Annual Report on Form 10-K for the year ended March 31, 2012. Such statements
are based on the beliefs of the Company's management as well as assumptions
made by and information currently available to Company management. Actual
events or results may differ materially. All forward looking statements and
cautionary statements included in this document are made as of the date hereby
based on information available to the Company as of the date hereof, and the
Company assumes no obligation to update any forward looking statement or
cautionary statement.

                                                                
                                                                
Nicholas Financial, Inc.
Condensed Consolidated Statements of Income
(Unaudited, Dollars in Thousands, Except Share and Per Share Amounts)
                                                                
                                  Three months ended    Year ended
                                   March 31,             March 31,
                                  2013       2012       2013       2012
Revenue:                                                         
Interest and fee income on finance $17,679    $17,173    $70,590    $68,123
receivables
Sales                              9          9          38         44
                                  17,688     17,182     70,628     68,167
Expenses:                                                        
Operating                          7,661      6,818      29,114     26,928
Dividend tax                       73         60         1,492      180
Provision for credit losses        732        (707)      1,869      5
Interest expense                   1,403      1,189      5,121      4,892
Change in fair value of interest   (141)      --        505        --
rate swaps
                                  9,728      7,360      38,101     32,005
                                                                
Operating income before income     7,960      9,822      32,527     36,162
taxes
Income tax expense                 3,095      3,777      12,561     13,932
Net income                         $4,865     $6,045     $19,966    $22,230
                                                                
Earnings per share:                                              
Basic                              $0.40      $0.51      $1.67      $1.89
Diluted                            $0.40      $0.50      $1.63      $1.85
                                                                
Weighted average shares            12,024,000 11,791,000 11,977,000 11,747,000
                                                                
Weighted average shares and        12,267,000 12,089,000 12,218,000 12,033,000
assumed dilution

                                                   
                                                   
Condensed Consolidated Balance Sheets               
(Unaudited, In Thousands)                           
                                                   
                                          March 31, March 31,
                                          2013      2012
Cash                                       $2,798    $2,803
Finance receivables, net                   250,961   242,349
Other assets                               10,777    12,084
                                                   
Total assets                               $264,536  $257,236
                                                   
Line of credit                             $125,500  $112,000
Other liabilities                          11,370    9,297
                                                   
Total liabilities                          136,870   121,297
                                                   
Shareholders' equity                       127,666   135,939
                                                   
Total liabilities and shareholders' equity $264,536  $257,236

                                                             
                                                             
Portfolio Summary    Three months ended            Year ended
                     March 31,                     March 31,
                    2013           2012           2013          2012
Average finance
receivables, net of  $279,908,688   $275,276,658   $280,909,385  $272,979,496
unearned interest
(1)
Average indebtedness $126,750,000   $112,750,000   115,157,810   $115,688,980
(2)
Interest and fee
income on finance    $17,679,561    $17,172,359    $70,628.20    $68,122,532
receivables (3)
Interest expense     1,403,441      1,189,117      5,120,827     4,891,854
Net interest and fee
income on finance    $16,276,120    $15,983,242    $65,507,368   $63,230,678
receivables
Weighted average     23.16%         24.06%         23.43%        23.93%
contractual rate (4)
Average cost of      4.43%          4.22%          4.45%         4.23%
borrowed funds (2)
Gross portfolio      25.26%         24.95%         25.14%        24.96%
yield (5)
                                                             
Interest expense as
a percentage of
average finance      2.01%          1.73%          1.82%         1.79%
receivables, net of
unearned interest
                                                             
Provision for credit
losses as a
percentage of        1.05%          (1.03)%        0.67%         0.00%
average finance
receivables, net of
unearned interest
Net portfolio yield  22.20%         24.25%         22.65%        23.17%
(5)
                                                             
Marketing, salaries,
employee benefits,
depreciation and
administrative
expenses as a        10.98%         9.91%          10.81%        9.85%
percentage of
average finance
receivables, net of
unearned interest
(6)
                                                             
Pre-tax yield as a
percentage of
average finance      11.22%         14.34%         11.84%        13.32%
receivables, net of
unearned interest
(7)
                                                             
Write-off to         6.78%          4.86%          6.81%         5.66%
liquidation (8)
                                                             
Net charge-off       6.30%          4.29%          5.88%         4.59%
percentage (9)
                                                             
Note: All three month key performance indicators expressed as percentages have
been annualized.

(1) Average finance receivables, net of unearned interest, represents the
average of gross finance receivables, less unearned interest throughout the
period.

(2) Average indebtedness represents the average outstanding borrowings under
the Line. Average cost of borrowed funds represents interest expense as a
percentage of average indebtedness.

(3) Interest and fee income on finance receivables does not include revenue
generated by Nicholas Data Services, Inc. ("NDS"), the wholly-owned software
subsidiary of Nicholas Financial, Inc.

(4) Weighted average contractual rate represents the weighted average annual
percentage rate (APR) of all Contracts purchased and direct loans originated
during the period.

(5) Gross portfolio yield represents interest and fee income on finance
receivables as a percentage of average finance receivables, net of unearned
interest. Net portfolio yield represents interest and fee income on finance
receivables minus (a) interest expense and (b) the provision for credit losses
as a percentage of average finance receivables, net of unearned interest.

(6) Administrative expenses included in the calculation above are net of
administrative expenses associated with NDS which approximated $48,000 and
$53,000 for the three-month periods ended March 31, 2013 and 2012, and
$220,000 for both years ended March 31, 2013 and 2012, respectively. The
numerators for the three months ended March 31, 2013 and 2012 and the years
ended March 31, 2013 and 2012 include a tax associated with cash dividends. In
December 2012, this amount was substantial due to a $2.00 special cash
dividend. Absent the dividend tax, the percentages would have been 10.88% and
9.83% for the three months ended March 31, 2013 and 2012 and 10.28% and 9.78%
for the years ended March 31, 2013 and 2012, respectively.

(7) Pre-tax yield represents net portfolio yield minus operating expenses as a
percentage of average finance receivables, net of unearned interest.

(8) Write-off to liquidation percentage is defined as net charge-offs divided
by liquidation. Liquidation is defined as beginning receivable balance plus
current period purchases minus voids and refinances minus ending receivable
balance.

(9) Net charge-off percentage represents net charge-offs divided by average
finance receivables, net of unearned interest, outstanding during the period.



The following tables present certain information regarding the delinquency
rates experienced by the Company with respect to Contracts and under its
direct loan program:

                                 Delinquencies
Contracts    Gross Balance 31 – 60 days 61 – 90 days Over 90    Total        
             Outstanding
March 31,    $ 386,940,093 $10,557,122  $ 2,723,456  $1,373,507 $ 14,654,085 
2013
                         2.73%        0.70%        0.35%      3.78%        
March 31,    $ 382,766,667 $ 8,994,485  $ 1,889,643  $ 663,521 $ 11,547,649 
2012
                         2.35%        0.49%        0.17%      3.01%        
                                                                       
Direct Loans Gross Balance 31 – 60 days 61 – 90 days Over 90    Total        
             Outstanding
March 31,    $ 8,781,637   $72,364     $21,509     $13,790   $107,663    
2013
                         0.82%        0.25%        0.16%      1.23%        
March 31,    $ 6,221,688   $48,899     $ 14,257   $4,933  $ 68,089   
2012
                         0.79%        0.23%        0.07%      1.09%        
                                                                       
                                                                       

The following table presents selected information on Contracts purchased by
the Company, net of unearned interest:

                            Three months ended      Year ended
                             March 31,               March 31,
Contracts                    2013        2012        2013         2012
Purchases                    $43,847,280 $42,289,228 $151,740,809 $146,321,687
Weighted APR                 23.06%      23.99%      23.28%       23.82%
Average discount             7.73%       8.50%       7.81%        8.47%
Weighted average term        51          48          50           49
(months)
Average loan                 $10,341 $9,742     $10,260     $9,873
Number of contracts          4,240       4,341       14,789       14,820

CONTACT: Ralph Finkenbrink
         Sr. Vice President, CFO
         Ph # - 727-726-0763
         www.nicholasfinancial.com

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