Slide 1: 2Q 2017 Earnings Call Presentation
Regional Management 2Q 2017 Earnings Call Presentation August 1, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement Regional Management This presentation, the related remarks, and the responses to various questions may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Regional Management Corp.’s expectatio
Slide 3: 2Q 17 Highlights – Strong Portfolio Growth
2Q 17 Highlights – Strong Portfolio Growth Regional Management (dollars in millions, except EPS) 2Q 17 2Q 16 $ Chg B/(W) % Chg B/(W) Finance Receivables $726.8 $645.7 $81.0 12.5% Interest & Fee Income 59.8 52.6 7.2 13.7% Total Revenue 65.3 57.3 8.0 14.0% Provision for Credit Losses 18.6 13.4 (5.2) (
Slide 4: Strategic Updates
Strategic Updates Regional Management ◾ Centralized Collections — Strong results from limited testing in Texas, North Carolina, and South Carolina — Continue to expand centralized collections function in other geographies in 3Q 17 ◾ Nortridge Loan Management System Implementation — Conversion to NLS
Slide 5: Net Income Follows Seasonal Pattern of Ledger Growth
Net Income Follows Seasonal Pattern of Ledger Growth Regional Management Ending Net Receivables $750 $727 $718 $696 $695 $700 $628 $646 $650 $602 $607 Millions $600 $550 $500 $450 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 YoY $58.3 $82.3 $81.5 $73.2 $94.5 $89.3 $87.6 $81.0 Change 10.7% 15.1% 1
Slide 6: Product Category Trends
Product Category Trends Regional Management in millions $ Chg I/(D) % Chg I/(D) Ending Net Receivables 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 vs. 1Q 17 vs. 2Q 16 vs. 1Q 17 vs. 2Q 16 Small Loans $328 $338 $311 $320 $349 $358 $336 $349 $13 $29 3.9% 9.0% Large Loans $120 $147 $162 $195 $217 $2
Slide 7: Revenue Driven by Strong Year-Over-Year Portfolio Growth
Regional Management Revenue Driven by Strong Year-Over-Year Portfolio Growth $68.0 Total Revenue $65.8 $64.0 $65.3 $62.5 $63.0 $56.7 $57.3 $58.0 $56.7 Millions $55.1 $53.0 $48.0 $43.0 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 Sequential Ä 4.0% 2.9% 0.0% 1.1% 9.0% 2.5% 2.8% (0.7%) Year/Year Ä 2
Slide 8: Interest & Fee Income Driven by Strong Portfolio Growth
Regional Management Interest & Fee Income Driven by Strong Portfolio Growth $65.0 Interest and Fee Income $59.7 $59.3 $59.8 $60.0 $57.4 • Interest and fee yield improved by 40 bps $55.0 $51.3 $51.3 $52.6 sequentially due to a lower Millions $50.0 $49.7 dollar amount of loans in non-accrual status $4
Slide 9: Improving Credit – Provision Consistent with Portfolio Growth
Regional Management Improving Credit – Provision Consistent with Portfolio Growth $24.0 Net Credit Losses & Provision for Credit Losses $24.0 Total Provision • Growth in 2Q 17 $20.0 $20.0 pushed the Millions $16.0 $16.0 allowance for credit Millions in in loses higher by $1 Losses $12.0 $12.0 millio
Slide 10: Seasonal Pattern of Delinquency
Seasonal Pattern of Delinquency Regional Management 2Q 17 delinquency: - 1+ days past due of 17.5%; 80 bps below 2Q 16 - 30+ days past due of 6.5%; comparable to 1Q 17 and 30 bps below 2Q 16 - 90+ day delinquencies are substantially below 1Q 17 30+ Delinquency Trend $60.0 7.3% 7.4% 8.0% 7.2% 7.1% 6.
Slide 11: Continuing to Manage Expenses Closely
Regional Management Continuing to Manage Expenses Closely $50.0 Total G&A Expenses 25.0% 19.3% 18.9% $40.0 18.6% 18.1% 20.0% 17.8% 17.7% 17.9% 16.3% $30.0 15.0% ANR of % $28.6 $29.8 $29.5 $30.5 $28.8 $31.5 $31.6 $26.2 $20.0 10.0% Annualized $10.0 5.0% $0.0 0.0% 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q
Slide 12: Management
Regional Management Regional Management RM Listed NYSE