Nicholas Financial originated more subprime contracts during the first quarter of its fiscal year, but its net earnings softened by double digits.

The number of contracts the company booked during the quarter came in at 4,244 for a total loan amount worth $46,769,602. The average loan in Q1 stood at $11,020 with terms stretching to 54 months and a weighted APR at 23.01 percent and an average discount of 8.19 percent.

In the year-ago quarter, Nicholas Financial originated 3,960 loans worth $41,882,714. The average contract was $10,576 while the weighted APR (22.81 percent) and average term (51 months) were both lower, too. But the average discount was slightly higher at 8.35 percent.

The Q1 performance left Nicholas Financial with a net earnings decrease of 14 percent to settle at $4.909 million as compared to $5.7 million for the three months of its previous fiscal year.

The company’s per-share diluted net earnings dropped 13 percent to $0.40 as compared to $0.46 in the previous year’s first quarter.

However, Nicholas Financial posted a 4-percent uptick in revenue in the first quarter, as it climbed to $21.333 million, up from $20.476 million a year earlier.

Nicholas Financial president and chief executive officer Ralph Finkenbrink explained the company’s Q1 results were negatively affected by a reduction in the gross portfolio yield, an increase in the provision for credit losses and an increase in operating expenses compared to year-ago quarter.

Finkenbrink also noted results were further impacted negatively by a change in the fair value of interest rate swap agreements, which resulted in a loss of $212,000 in the most recent quarter compared to a gain of $833,000 a year earlier.

Furthermore, the company boss pointed out professional fees associated with the previously announced potential sale of the company, that were not deductible for income tax purposes, will now be deductible as a result of the termination of the arrangement agreement as announced on July 1. That move resulted in a decrease in income tax expense of $804,000.

Finkenbrink highlighted Nicholas Financial remains in a growth mode as it already operates 66 branch locations throughout the Southeast and Midwest.

“We will continue to develop additional markets and we may open additional branch locations during the remainder of our current fiscal year, which ends March 31,” Finkenbrink said.