Springleaf Financial Inc. (previously American General Finance), an 80% subsidiary of Fortress Investment Group[1], is a provider of consumer loans, retail financing and other credit related products. Springleaf is based in Evansville, IN, with branch locations in 40 states, the United Kingdom, Puerto Rico and the U.S. Virgin Islands.
Springleaf currently serves over a million customers and has roughly 1,100 branches located nationwide, in Puerto Rico and the U.S. Virgin Islands. Springleaf employs an estimated 8,000 people (about 1,300 of which are at its Evansville headquarters).[2]
The market focus of Springleaf is:
American General Finance, Inc. is the parent company of subsidiary American General Finance Corporation.
The company operates in three segments:
The "Branch Network" segment originates real estate loans secured by first and second mortgages on residential real estate; and secured and unsecured nonreal estate loans. This segment purchases retail sales finance contracts, and provides revolving retail sales financing services. Through this, the company finances retail sales of consumer goods and services by retail merchants.
AGF has been greatly impacted by the financial crisis of 2007-2008. As of June 30, about 83 percent, or $7.7 billion, of its real estate loans were held by subprime borrowers. As of the end of the second quarter 2008, AGF had about $1.4 billion in revenues, but lost about $63 million after costs were accounted for. Earnings statements (as of September 30, 2008) reported that the company has losses of about $535 million.
In November 2008, AGF closed 250 local branches.[3]
In May 2009, AGF closed an additional 150 local branches and cut 500 positions, now bringing the total number of operating branches to around 1,200. During this process, AGF laid off 140 of their Evansville, IN headquarter employees.[4]
In August 2010, Fortress Investment Group purchased 80% of the interest in AGF. Now with a new company owner, AGF is expected to be changed drastically. Their name has officially been changed to Springleaf Financial [5] [6]
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