Nicholas Financial 4th Quarter & End of Year Earnings Report

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that involve risks and uncertainties including competitive factors, the management of growth, 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-KSB for the year ended March 31, 2006. 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 and forward looking statement or cautionary statement.

NICHOLAS FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, Dollars in Thousands, Except Per Share Amounts)

	Three Months Ended March 31,		Year Ended March 31,
	2007	2006	2007	2006
Revenue:
Interest income on finance receivables	$ 12,015	$ 12,130	$ 46,590	$ 42,503
Sales	29	40	119	174
	12,044	12,170	46,709	42,677
Expenses:
Operating	4,874	4,779	18,745	17,396
Provision for credit losses	834	1,477	3,690	3,909
Interest expense	1,461	1,171	5,536	4,332
	7,169	7,427	27,971	25,637

Operating Income before income taxes	4,875	4,743	18,738	17,040
Income tax expense	1,863	1,805	7,158	6,481
Net income	$ 3,012 =======	$ 2,938 =======	$ 11,580 =======	$ 10,559 =======
..
Earnings per share:
Basic	$ 0.30 =======	$ 0.30 =======	$ 1.17 =======	$ 1.07 =======
Diluted	$ 0.29 =======	$ 0.28 =======	$ 1.13 =======	$ 1.01 =======
..
Weighted average shares	9,962,881 =======	9,894,472 =======	9,929,944 =======	9,873,237 =======
..
Weighted average shares and assumed dilution	10,327,215 =======	10,488,415 =======	10,286,786 =======	10,474,291 =======

NICHOLAS FINANCIAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Dollars in Thousands)

	March 31,	March 31,
	2007	2006
Cash	$ 1,499	$ 1,729
Finance receivables, net	164,365	140,198
Other Assets	7,045	7,568
Total Assets	$ 172,909 =======	$ 149,495 =======
Line of credit	$ 94,012	$ 82,416
Other liabilities	9,063	8,830
Total Liabilities	103,075	91,246
..
Shareholder's Equity	69,834	58,249
..
Total Liabilities & Shareholders' equity	$ 172,909 =======	$ 149,495 =======

Portfolio Summary	Three Months Ended March 31		Year Ended March 31
	2007	2006	2007	2006
Average finance receivables, net of unearned interest (1)	$ 181,120,319 ============	$ 158,955,951 ============	$ 172,508,750 ============	$ 149,634,203 ============
Average indebtedness (2)	$ 92,420,346 ============	$ 80,160,083 ============	$ 87,392,132 ============	$ 73,664,722 ============
Finance revenue (3)	$ 12,014,710	$ 12,129,940	$ 46,590,436	$ 42,502,615
Interest expense	1,461,058	1,171,024	5,535,599	4,332,414
Net finance revenue	$ 10,553,652 ============	$ 10,958,916 ============	$ 41,054,837 ============	$ 38,170,201 ============
Weighted average contractual rate (4)	24.10% ============	24.45% ============	23.99% ============	24.14% ============
Average Cost of Borrowed Funds (2)	6.32% ============	5.84% ============	6.33% ============	5.88% ============
Gross Portfolio Yield (5)	26.53%	30.52%	27.01%	28.40%
Interest expense as a percentage of average finance receivables, net of unearned interest	3.23%	2.95%	3.21%	2.89%
Provision for credit losses as a percentage of average finance receivables, net of unearned interest	1.84%	3.71%	2.14%	2.61%
Net portfolio yield (5)	21.46%	23.86%	21.66%	22.90%
Operating expenses as a percentage of average finance receivables, net of unearned interest (6)	10.69%	11.94%	10.77%	11.45%
Pre-tax yield as a percentage of average finance receivables, net of unearned interest (7)	10.77% ============	11.92% ============	10.89% ============	11.45% ============
Write-off to liquidation (8)	6.19%	4.25%	6.72%	5.44%
Net charge-off percentage (9)	5.82%	4.17%	6.30%	4.98%


Note: All three 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 and notes payable-related party. Average cost of borrowed funds represents interest expense as a percentage of average indebtedness. (3) Finance revenue 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 finance revenues as a percentage of average finance receivables, net of unearned interest. Net portfolio yield represents finance revenue minus (a) interest expense and (b) the provision for credit losses as a percentage of average finance receivables, net of unearned interest. (6) Operating expenses represent total expenses, less interest expense, the provision for credit losses and operating costs associated with NDS. (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 delinquency rates experienced by the Company with respect to Contracts and under its direct loan program:
	At March 31,
	2007		2006
Contracts
Gross Balance Outstanding	$ 247,002,051		$ 214,509,842

Delinquencies

30 to 59 days	$4,072,821	1.65%	$2,718,246	1.27%
60 to 89 days	921,097	0.37%	521,319	0.24%
90 + days	506,433	0.21%	220,664	0.10%

Total Delinquencies	$5,500,351 ========	2.23% ========	$3,460,229 ========	1.61% ========

Direct Loans
Gross Balance Outstanding	$ 9,990,060 =========		$ 8,208,542 =========
..
Delinquencies

30 to 59 days	$65,982	0.66%	$59,910	0.73%
60 to 89 days	12,024	0.12%	16,258	0.20%
90 + days	21,476	0.22%	10,139	0.12%

Total Delinquencies	$99,482 ========	1.00% ========	$86,307 ========	1.05% ========

The following table presents selected information on Contracts purchased by the Company, net of unearned interest:
	Three Months Ended March 31		Year Ended March 31
Contracts	2007	2006	2007	2006
Purchases	$34,358,039	$31,171,507	$120,192,997	$109,357,513
Weighted APR	24.03%	24.40%	23.90%	24.03%
Avg. Discount	8.42%	8.93%	8.45%	8.78%
Avg.Term (months)	47	45	46	45
Average Loan	$ 9,037	$ 8,756	$ 9,063	$ 8,795
# of Contracts	3,802	3,560	13,262	12,434