Regional Management Corp. · NYSE:RM
Regional Management — Investor Presentation (March 2018)
19 slides from Regional Management's investor presentation, Mar 21, 2018
Slide 1: Investor Presentation March 2018
CREGIONAL MANAGEMENT Investor Presentation March 2018
Slide 2: Safe Harbor Statement
G@BEGIONAL Safe Harbor Statement 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 Corps expectatio
Slide 3: Investment Highlights
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Slide 4: Company Overview
G@AREGIONAL Company Overview MANAGEMENT = Consumer finance company founded in 1987 History = Focused on consumer installment lending = IPO: March 2012; NYSE: RM = 342 branches as of December 31, 2017 in 9 southeastern and southwestern U.S. states © Core portfolio of small and large personal loans (“
Slide 5: Historical Financial Performance
Historical Financial Performance G@AREGIONAL MANAGEMENT = Recent earnings growth driven by combination of volume-related revenue growth and more stable credit + Strong credit performance and profitability through the cycle (sinmitons) 208 $300 ‘ 20 $254 sa sto 8 = $212 0 [ ; ; ; 6 2010 201012 0Ts 20
Slide 6: Core Loan Portfolio Growth Driven by Large Loan Receivables
REGIONAL Core Loan Portfolio Growth Driven by Large Loan Receivables MANAGEMENT $723 $750 mSmall_m Large § $594 2 8 sass 3 $500 Fy $36 3 s250 3 $320 $338 CRED are $0 2014 2o1s 2016 2017 % Increase 10.0% 32.6% 22.5% 21.8% —
Slide 7: Product Category Trends
G@BEGIONAL Product Category Trends MANAGEMENT in millions vs. 3Q.17 vs. 4Q, 16 $chei/0) %cheV0) _ $chg¥(0)%che¥/(0) ‘Small Loans (< $2,500) $311 $320 $349 $358 «$336 «$349 «$363 $376 $13 3.4% $17 48% Large Loans (> $2,500) $162 $195 $217 $235. $242 $268 $309 $347 $39 2SK#=OSIZ-S TSH Core Loan Produc
Slide 8: 2018 & 2019: Realize the Benefits of Our Investments
G@AREGIONAL 2018 & 2019: Realize the Benefits of Our Investments MANAGEMENT * Continue double-digit core portfolio growth through hybrid approach Increase receivables per branch and de novo expansion * Modernized infrastructure provides Regional with: Electronic payments, customer portal, texting In
Slide 9: Significant Market Opportunity
G@BEGIONAL MANAGEMENT Significant Market Opportunity Regional’s 370,000 customer accounts represent 0.5% of the approximately 80 million Americans that generally align with the Company's customer base. Regional believes that most of this population is underserved, which provides an attractive market
Slide 10: Hybrid Approach to Growth
G@BEGIONAL Hybrid Approach to Growth MANAGEMENT Branch Overview lybrid Approach to Growth * Multiple channels and products provide attractive market opportunities Most loans are serviced and collected through branches Migrating late-stage delinquency / collections to centralized collections group ©
Slide 11: Robust Loan Approval Process
G@BEGIONAL Robust Loan Approval Process MANAGEMENT = Customize automated decision engine used to determine if customer qualifies for product offerings = Product offering is based on risk profile of customer and their ability to repay a] fi A oe | ce vere BY Underwriting Decision Send to Branch
Slide 12: Multi-Product Offering Fits Customer Needs
G@AREGIONAL Multi-Product Offering Fits Customer Needs MANAGEMENT = Product suite provides multiple solutions for customers as their credit needs change = Most competitors offer either small or large loans ~ Regional provides both * _ Easy-to-understand products based on credit underwriting and abil
Slide 13: High Customer Satisfaction
G@BEGIONAL High Customer Satisfaction MANAGEMENT = Regional’s “Net Promoter Score” (NPS) of 66%, which measures customer loyalty, compares favorably to other companies in financial services and in other industries. * Top-three box (8, 9, or 10 out of 10) customer satisfaction of 88% = Over 75% of cu
Slide 14: Stable Customer Profile
G@BEGIONAL Stable Customer Profile MANAGEMENT Customer Profile FICO Distribution Age 49 years 45.0% 40.0% Homeowner 58% | 35.0% ren 30.0% Time in Residence Ayears 3. by, Borrower Income $38,000 20.0% 15.0% Average FICO. 617 10.0% 5.0% 0.0% <600 600 - 639 640+ © portfolio metrics as of December 31, 2
Slide 15: Diverse Funding and Liquidity Profile
G@BEGIONAL Diverse Funding and Liquidity Profile MANAGEMENT = Continue to diversify sources of funding to support future growth = Plan to complete first capital markets ABS transaction in 2018 "Diversified funding should allow for modest increase in leverage over time Amended and Upsized Wells Amort
Slide 16: Deep Management Experience
Deep Management Experience G@BEGIONAL MANAGEMENT Peter Knitzer President and ceo John Schachtel on Thomas Dan Taggart Chief Risk Offi aim Ryan, Chief Marketing Manavalan ef Digital officer 30+ years of consumer financial services experience Spent 14 years at Cit in various senior roles, including Ch
Slide 17: Strong Corporate Governance and Board of Directors
. REGIONAL Strong Corporate Governance and Board of Directors MANAGEMENT
Slide 18: Investment Highlights
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Slide 19: CREGIONAL
CREGIONAL MANAGEMENT € REGIONAL | MANAGEMENT L**
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