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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Nicholas Financial Reports 2nd Quarter Fiscal Year 2020 Results

November 8, 2019

-- Originations year-over-year on new Contracts purchased for the three months ended September 30, 2019 increased by 12.7% compared to prior year second quarter -- Originations year-over-year on Direct Loans for the three months ended September 30, 2019 increased by 65.5% compared to prior year second quarter -- Gross Portfolio Yield for the three months ended September 30, 2019 decreased to 26.9% compared to 27.8% during the prior year second quarter -- Interest and fee income on finance receivables for the three months ended September 30, 2019 decreased 19.7% due to a 17.0% decrease in average finance receivables, compared to prior year second quarter -- Accounts 60+ days delinquent decreased to 3.2%, excluding Chapter 13 bankruptcy accounts, compared to 4.4% as of the prior year second quarter -- Average APR on new Contracts purchased was 23.5% for the three months ended September 30, 2019 and September 30, 2018, respectively -- Average APR on Direct Loan originations increased to 27.4% compared to 26.5% during the prior year second quarter

CLEARWATER, Fla., Nov. 08, 2019 (GLOBE NEWSWIRE) -- Nicholas Financial, Inc. (NASDAQ: NICK) announced net income for the three months ended September 30, 2019 of $0.3 million compared to $0.6 million for the three months ended September 30, 2018. Diluted net income per share was $0.03 for the three months ended September 30, 2019 as compared to $0.07 for the three months ended September 30, 2018. Revenue decreased 19.7% to $15.6 million for the three months ended September 30, 2019 as compared to $19.4 million for the three months ended September 30, 2018. The Company reported income before income taxes for the three months ended September 30, 2019 of $0.4 million compared $0.7 million for the three months ended September 30, 2018. The Company recorded an income tax expense of approximately $0.1 million during the three months ended September 30, 2019 compared to an income tax expense of $0.1 million during the three months ended September 30, 2018.

Net income for the six months ended September 30, 2019 of $0.9 million compared to $2.0 million for the six months ended September 30, 2018. Diluted net income per share was $0.11 for the six months ended September 30, 2019 as compared to $0.25 for the six months ended September 30, 2018. Revenue decreased 15.6% to $32.2 million for the six months ended September 30, 2019 as compared to $38.2 million for the six months ended September 30, 2018. The Company reported income before income taxes for the six months ended September 30, 2019 of $1.2 million compared $2.7 million for the six months ended September 30, 2018. The Company recorded an income tax expense of approximately $0.3 million during the six months ended September 30, 2019 compared to $0.7 million during the six months ended September 30, 2018.

“Although our earnings for the 2nd Quarter of Fiscal Year 2020 were modest, we are very pleased overall with our operational successes and improvements,” said Doug Marohn, President and CEO. “We were able to increase same store and overall loan production in both indirect contract purchases and direct loan originations with 51 branches for the three months ended for September 30, 2019 as compared to 59 branches for the three months ended September 30, 2018. We also saw improvement in overall delinquency and in accounts 60+ days delinquent as compared to the prior year second quarter. We did this while maintaining the integrity and discipline we desire in our new acquisition KPI’s in terms of structure (amount financed, APR, discount, term, etc.).”

Marohn continued, “We also remain focused on proliferating our direct loan product to all of the states in which we operate. We are now operational in Florida, North Carolina, Georgia, Ohio. Tennessee and Alabama. Indiana, Missouri, South Carolina and Kentucky are slated to go live in our 3rd Quarter. Nicholas is also continuing to grow our branch network through expansion efforts in Columbia, South Carolina; Wichita, Kansas; and Milwaukee, Wisconsin.”

Key Performance Indicators on Contracts Purchased (Purchases in thousands) ----------------------------------------------------------------------------- Number of Average Fiscal Year Contracts Principal Amount Average Average Average Amount /Quarter Purchased Purchased Financed* APR* Discount%* Term* ^ ----------- --------- --------- -------- ------- - ---------- - ------- 2020 3,903 $ 39,158 $ 10,034 23.5 % 8.1 % 47 2 2,011 20,104 9,997 23.5 % 7.9 % 46 1 1,892 19,054 10,071 23.4 % 8.3 % 47 2019 7,684 $ 77,499 $ 10,086 23.5 % 8.2 % 47 4 2,151 21,233 9,871 23.5 % 8.0 % 46 3 1,625 16,476 10,139 23.5 % 8.1 % 47 2 1,761 17,845 10,133 23.5 % 8.4 % 47 1 2,147 21,945 10,221 23.7 % 8.3 % 48 2018 9,767 $ 109,575 $ 11,219 22.4 % 7.4 % 54 4 2,814 29,254 10,396 23.3 % 7.9 % 50 3 2,365 27,378 11,577 21.7 % 6.9 % 54 2 2,239 25,782 11,515 22.0 % 7.3 % 55 1 2,349 27,161 11,563 22.3 % 7.6 % 55

Key Performance Indicators on Direct Loans Originated (Originations in thousands) ------------------------------------------------------------- Number of Principa l Fiscal Year Loans Amount Average Average Average Amount /Quarter Originated Originat Financed APR* Term* ed *^ ----------- ---------- ------- ------- ------- - ------- 2020 1,285 5,044 3,904 27.8 % 25 2 739 2,988 4,043 27.4 % 25 1 546 2,056 3,765 28.2 % 24 2019 1,918 $ 7,741 $ 4,036 26.4 % 25 4 236 1,240 4,654 27.3 % 26 3 738 2,999 4,063 25.9 % 25 2 495 1,805 3,646 26.5 % 25 1 449 1,697 3,779 25.7 % 28 2018 2,036 $ 7,642 $ 3,754 25.2 % 29 4 380 1,445 3,752 25.0 % 29 3 622 2,218 3,566 25.2 % 28 2 501 1,953 3,897 25.1 % 29 1 533 2,026 3,801 25.4 % 30

*Each average included in the tables is calculated as a simple average.^Average amount financed is calculated as a single loan amount.

Nicholas Financial, Inc. is a publicly-traded specialty consumer finance company, operating branch locations in both Southeastern and Midwestern U.S. states. The Company has approximately 7.9 million shares of voting 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.

Cautionary Note regarding Forward-Looking Statements

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that involve risks and uncertainties including risk relating to competition and our ability to increase and maintain yield and profitability at desirable levels, as well as risks relating to general economic conditions, access to bank financing, our ability to expand the geographical scope of, and otherwise continue growing, our Direct Loan operations, 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, 2019. When used in this document, the words “anticipate”, “estimate”, “expect”, “will”, “may”, “plan,” “believe”, “intend” and similar expressions are intended to identify forward-looking statements. Such statements are based on the beliefs of Company management as well as assumptions made by and information currently available to Company management. Actual events or results may differ materially from those anticipated, estimated or expect. All forward-looking statements and cautionary statements included in this document are made as of the date hereof 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 Six months ended September 30, September 30, 2019 2018 2019 2018 -------- -------- -------- -------- Revenue: Interest and fee income on finance receivables $ 15,585 $ 19,404 $ 32,226 $ 38,163 - ------ - ------ - ------ - ------ Expenses: Operating expenses 8,927 7,966 17,898 16,767 Provision for credit losses 4,000 8,374 8,385 13,801 Interest expense 2,298 2,386 4,786 4,926 - ------ - ------ - ------ - ------ Total expenses 15,225 18,726 31,069 35,494 - ------ - ------ - ------ - ------ Income before income taxes 360 678 1,157 2,669 Income tax expense 92 96 298 669 - ------ - ------ - ------ - ------ Net income $ 268 $ 582 $ 859 $ 2,000 - ------ - ------ - ------ - ------ Earnings per share: Basic $ 0.03 $ 0.07 $ 0.11 $ 0.25 - ------ - ------ - ------ - ------ Diluted $ 0.03 $ 0.07 $ 0.11 $ 0.25 - ------ - ------ - ------ - ------

Condensed Consolidated Balance Sheets(Unaudited, In Thousands)

September March 31, 30, 2019 2019 --------- --------- Cash and restricted cash $ 13,928 $ 37,642 Finance receivables, net 199,452 202,042 Other assets 14,137 12,736 Intangibles 79 - Goodwill 350 - - ------- - ------- Total assets $ 227,946 $ 252,420 - ------- - ------- Credit facility $ 116,710 $ 142,619 Other liabilities 5,403 4,916 - ------- - ------- Total liabilities 122,113 147,535 Shareholders’ equity 105,833 104,885 - ------- - ------- Total liabilities and shareholders’ equity $ 227,946 $ 252,420 - ------- - ------- Book value per share $ 13.36 $ 13.26 - ------- - -------

Three months ended Six months ended September 30, September 30, (In thousands) (In thousands) ---------------------- Portfolio Summary 2019 2018 2019 2018 --------- --------- --------- ---------- Average finance receivables (1) $ 232,021 $ 279,680 $ 236,024 $ 287,980 - ------- - ------- - ------- - ------- Average indebtedness (2) $ 139,929 $ 143,882 $ 144,486 $ 152,467 - ------- - ------- - ------- - ------- Interest and fee income on finance receivables $ 15,585 $ 19,404 $ 32,226 $ 38,163 Interest expense 2,298 2,386 $ 4,786 $ 4,926 - ------- - ------- - ------- - ------- Net interest and fee income on finance receivables $ 13,287 $ 17,018 $ 27,440 $ 33,237 - ------- - ------- - ------- - ------- Portfolio yield (3) 26.87 % 27.75 % 27.31 % 26.50 % Interest expense as a percentage of average finance 3.96 % 3.41 % 4.06 % 3.42 % receivables Provision for credit losses as a percentage of average 6.90 % 11.98 % 7.11 % 9.58 % finance receivables - ------- - ------- - ------- - ------- Net portfolio yield (3) 16.01 % 12.36 % 16.15 % 13.50 % Operating expenses as a percentage of average finance 15.39 % 11.39 % 15.17 % 11.64 % receivables - ------- - ------- - ------- - ------- Pre-tax yield as a percentage of average finance 0.62 % 0.97 % 0.98 % 1.86 % receivables (4) - ------- - ------- - ------- - ------- Net charge-off percentage (5) 11.40 % 11.85 % 10.01 % 10.37 % Allowance percentage (6) 5.82 % 6.86 % 5.72 % 6.66 %

Note: All three-month and six-month statement of income performance indicators expressed as percentages have been annualized.

(1) Average finance receivables represent the average of finance receivables throughout the period.(2) Average indebtedness represents the average outstanding borrowings under the Credit Facility.(3) Portfolio yield represents interest and fee income on finance receivables as a percentage of average finance receivables. Net portfolio yield represents (a) interest and fee income on finance receivables minus (b) interest expense minus (c) the provision for credit losses, as a percentage of average finance receivables.(4) Pre-tax yield represents net portfolio yield minus operating expenses, as a percentage of average finance receivables.(5) Net charge-off percentage represents net charge-offs (charge-offs less recoveries) divided by average finance receivables, outstanding during the period.(6) Allowance percentage represents the allowance for credit losses divided by average finance receivables outstanding during the period.

The following tables present certain information regarding the delinquency rates experienced by the Company with respect to automobile finance installment contracts (“Contracts”) and direct consumer loans (“Direct Loans”), excluding any Chapter 13 bankruptcy accounts:

(In thousands, except percentages)

Contracts Balance Outstandin 30 – 59 60 – 89 90 – g days days 119 120+ Total days --------- -------- ------- ------- ------- -------- September 30, 2019 $ 212,396 $ 13,981 $ 4,950 $ 1,946 $ 42 $ 20,919 6.58 % 2.33 % 0.92 % 0.02 % 9.85 % September 30, 2018 $ 256,095 $ 17,399 $ 7,132 $ 2,190 $ 2,043 $ 28,764 6.79 % 2.78 % 0.86 % 0.80 % 11.23 % Direct Loans Balance Outstandin 30 – 59 60 – 89 90 – g days days 119 120+ Total days --------- -------- ------- ------- ------- -------- September 30, 2019 $ 9,480 $ 219 $ 115 $ 56 - $ 390 2.31 % 1.21 % 0.59 % - % 4.11 % September 30, 2018 $ 7,465 $ 162 $ 122 $ 27 $ 68 $ 379 2.17 % 1.63 % 0.36 % 0.91 % 5.08 %

The following table presents selected information on Contracts purchased and Direct Loans originated by the Company:

Contracts Direct Loans -------------------- ------------------ Three months ended Three months ended September 30, September 30, (Purchases in (Originations in thousands) thousands) -------------------- ------------------ 2019 2018 2019 2018 -------- -------- ------- ------- Purchases/Originations $ 20,104 $ 17,845 $ 2,988 $ 1,805 Average APR 23.5 % 23.5 % 27.4 % 26.5 % Average discount 7.9 % 8.4 % N/A N/A Average term (months) 46 47 25 25 Average amount financed $ 9,997 $ 10,133 $ 4,043 $ 3,646 Number of contracts 2,011 1,761 739 495 Contracts Direct Loans -------------------- ------------------ Six months ended Six months ended September 30, September 30, (Purchases in (Originations in thousands) thousands) -------------------- ------------------ 2019 2018 2019 2018 -------- -------- ------- ------- Purchases/Originations $ 39,158 $ 39,790 $ 5,044 $ 3,502 Average APR 23.5 % 23.6 % 27.8 % 26.1 % Average discount 8.1 % 8.4 % N/A N/A Average term (months) 47 48 25 27 Average amount financed $ 10,034 $ 10,177 $ 3,904 $ 3,713 Number of contracts 3,903 3,908 1,285 944

The following table presents selected information on the entire Contract and Direct Loan portfolios of the Company:

Contracts Direct Loans ---------------- -------------- As of As of September 30, September 30, ---------------- -------------- Portfolio 2019 2018 2019 2018 ------ ------ ----- ----- Average APR 22.7 % 22.4 % 26.5 % 25.1 % Average discount 7.7 % 7.2 % N/A N/A Average term (months) 52 54 27 32 Number of active contracts 27,294 30,548 2,921 2,458

Nicholas Contact: NASDAQ: NICK ------------------------ Nicholas Financial, Inc. Corporate Headquarters Kelly Malson 2454 McMullen-Booth Rd. CFO Web site:www.nicholasfinancial.com Building C, Suite 501 Ph # (727)-726-0763 Clearwater, FL 33759