Regional Management Corp. · NYSE:RM
Regional Management — Investor Presentation (September 2023)
17 slides from Regional Management's investor presentation, Sep 19, 2023
Slide 1: Investor Presentation September 20th, 2023
Investor Presentation September 20th, 2023
Slide 2: Legal Disclosures
Legal Disclosures 2 This document contains summarized information concerning Regional Management Corp. (the “Company”) and the Company’s business, operations, financial performance, and trends. No representation is made that the information in this document is complete. For additional financial, sta
Slide 3: Strategic Imperatives
Strategic Imperatives 3 Expand margins and maximize cash flows from loan portfolio Pricing increases, credit tightening, and improving economic conditions expected to drive higher future revenue yields Investment in data and analytics and improved credit decisioning will create better net credit los
Slide 4: Excess Capital Consistently Returned to Shareholders
Excess Capital Consistently Returned to Shareholders Proven business model capable of generating excess capital to return to shareholders and to reinvest in strategic initiatives that will generate sustainable, long-term profitable growth Capital = Stockholders’ Equity + Allowance for Credit Losses
Slide 5: Investment Highlights
Investment Highlights Strong balance sheet supports capital returns Geographic, product, and channel expansion drive growth Omni-channel growth strategy with abundant market opportunity Controlled growth with stable credit using advanced credit tools Modern infrastructure and digital capabilities Pr
Slide 6: Company Overview
Company Overview 6 Founded 1987 NYSE Listed: RM 347 branches 19 states Total receivables of $1.69 billion Multi-channel marketing: branches, digital, and direct mail Legacy States (prior to 2021) 2021 New States (IL, UT) 2022 New States (MS, IN, CA, LA) Potential Future State Expansion Geographic fo
Slide 7: Abundant Total Addressable Market
Abundant Total Addressable Market Approximately 72 million Americans generally align with Regional’s customer base (1)(3) $91 billion market opportunity – RM has less than 2% market share and increased our addressable market by over 80% since 2020; still significant runway for growth $4.7 Trillion C
Slide 8: Serving Our Customers Best
Serving Our Customers Best 8 Excellent net promoter score of 59 (1) 90+% favorable ratings for key attributes (1): Loan process was quick, easy, and understandable People are professional, responsive, respectful, knowledgeable, helpful, and friendly 89% of customers would apply to Regional Finance f
Slide 9: Product Offerings
Product Offerings 9 Multi-Channel Acquisition Small Loans Large Loans In Branch $450.9MM Originated 69% Large/31% Small Direct Mail $173.4MM Originated Convenience Check Loans Digital $77.7MM Originated Digital Lead Generation Partnership Affiliates Customer Need Short-term cash needs Bill payment B
Slide 10: Financial Overview: Originations
Financial Overview: Originations 10 Originations Impacted by Credit Tightening Year-over-year growth rate reduced from credit tightening actions; originations more concentrated on programs to present and former borrowers, which perform better than new borrowers 2Q 23 direct mail originations up 1.7%
Slide 11: Financial Overview: Credit
Financial Overview: Credit 11 30+ days past due of 6.9% improved 30 basis points sequentially and was 60 basis points above 2Q 19 levels Estimated 30 basis points impact related to slower portfolio growth from credit tightening in 2023 versus 2019 30+ days past due of $116.3 million compares favorab
Slide 12: Financial Overview: Key Financial Results
Financial Overview: Key Financial Results 12 In millions In millions Net Income In millions 12 Challenging macroeconomic conditions have impacted recent returns and profitability levels Continued growth in account base and portfolio in controlled and profitable manner 2Q 2023 revenue growth outpaced
Slide 13: Strong Funding Profile
13 As of June 30, 2023, total unused capacity was $641 million (subject to borrowing base) Available liquidity of $147 million as of June 30, 2023 Fixed-rate debt represented 88% of total debt as of June 30, 2023, and had a weighted-average revolving duration of 1.6 years Strong Funding Profile Unus
Slide 14: Long-Term, Sustainable, and Profitable Growth
Long-Term, Sustainable, and Profitable Growth 14 Geographic Expansion Accelerated Innovation Product and Channel Expansion Identified states with favorable economics for expansion Continue to identify opportunities to optimize branch network within existing footprint Continue to drive scale using ce
Slide 15: Appendix
Appendix
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures 16 In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), this presentation contains certain non-GAAP financial measures. The company’s management utilizes non-GAAP measures as additional metrics to aid in, and en
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures 17
Regional Management — Investor Presentation (September 2023) on 6ix