Regional Management Corp. · NYSE:RM
Regional Management — SFVegas 2025
33 slides from Regional Management's conference presentation, Feb 24, 2025
Slide 1: SFVegas Presentation February 2025
SFVegas Presentation February 2025
Slide 2: Legal Disclosures
Legal Disclosures 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, stati
Slide 3: Company Overview
Company Overview
Slide 4: Company Overview
Company Overview Founded 1987 NYSE Listed: RM 344 branches 19 states Total receivables of $1.9 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 footp
Slide 5: Growth Strategy
Growth Strategy 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 centralized originations and servic
Slide 6: 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 De
Slide 7: Financial Overview: Key Financial Results
Financial Overview: Key Financial Results In millions In millions Net Income In millions Continued growth in account base and portfolio in controlled and profitable manner 2024 revenue growth outpaced G&A expense growth by 8.1x from the prior-year Enhanced prequalification capabilities and tighter i
Slide 8: 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 9: Serving Our Customers Best
Serving Our Customers Best Excellent net promoter score of 61(1) 91% of customers would apply to Regional Finance first the next time they need a loan(1) ~90% favorable ratings for key attributes(1): Loan process was quick, easy, and understandable People are professional, responsive, respectful, kn
Slide 10: Product Offerings
Product Offerings Multi-Channel Acquisition Small Loans Large Loans In Branch $1.0B Originated 69% Large/31% Small Direct Mail $454.0MM Originated Convenience Check Loans Digital $186.3MM Originated Digital Lead Generation Partnership Affiliates Customer Need Short-term cash needs Bill payment Back-
Slide 11: Originations
Originations In millions In millions Record total originations of $475.9 million in 4Q 24 were up from $407.8 million in 4Q 23 In 4Q24, branch, digital, and direct mail originations up year-over-year by 14.8%, 34.9%, and 14.6%, respectively Achieved year-over-year portfolio growth of $121 million, o
Slide 12: Funding
Funding
Slide 13: Diversified Liquidity Profile
Diversified Liquidity Profile Long history of liquidity support from a strong group of banking partners Diversified funding platform with a senior revolving facility, warehouse facilities, and securitizations (1) During January 2025, we amended our Regions Bank facility to, among other things, decre
Slide 14: Strength of Sponsor
Strength of Sponsor Regional has been in business since 1987 and has effectively managed numerous economic and business cycles Deep management and board experience in consumer finance industry Profitable every fiscal year since IPO in 2012 Seasoned Program Regional has successfully completed 11 secu
Slide 15: Recent ABS Issuances Reinvestment Criteria
Recent ABS Issuances Reinvestment Criteria 2024-2 2024-1 2022-2B 2022-1 2021-2 Top 3 States 70.00% 70.00% 80.00% 80.00% 80.00% Top State 40.00% 40.00% 45.00% 45.00% 45.00% Top State (excluding Top 3) 10.00% 10.00% 15.00% 15.00% 15.00% Minimum Weighted Average Coupon 29.00% 28.50% 27.50% 25.00% 25.00
Slide 16: Governance & Controls
Governance & Controls
Slide 17: Public Company Discipline and Transparency
Public Company Discipline and Transparency Full Transparency – Public SEC Filings and Disclosures Internal Controls – SOX controls in place since 2013 External Audits – Deloitte & Touche LLP Compliance – Team of 18 FTE led by Chief Compliance Officer Enterprise Risk Management – Identifies and manag
Slide 18: Deep Management Experience
Rob Beck President and Chief Executive Officer Harp Rana Chief Financial and Administrative Officer Jim Ryan Chief Marketing Officer Manish Parmar Chief Credit Risk Officer Joseph Manavalan Chief Technology and Digital Officer Chris Peterson Chief Data and Analytics Officer Brian Fisher Chief Strate
Slide 19: Strong Corporate Governance and Diverse Board of Directors
Strong Corporate Governance and Diverse Board of Directors Jonathan Brown Partner with Basswood Capital Management, LLC Formerly at Sandelman Partners Formerly at Goldman Sachs Maria Contreras-Sweet Former Administrator of U.S. Small Business Administration Founder of ProAmerica Bank Former Secretar
Slide 20: Robust Procedures and Controls
Robust Procedures and Controls Oversight Collateral All borrowers must provide collateral Secured by titled assets (hard secured) or personal property (soft secured) Verifications Identity Employment Income Credit Scoring Diverse data attributes Review of credit bureau information Implementation of
Slide 21: Compliance and Audit
Compliance and Audit Internal Audit Operates under a board-approved plan Regularly review loan originations and servicing records Review internal policies and procedures to ensure compliance Branch and Central Employees Annual compliance trainings and re-certification Strong culture of compliance De
Slide 22: Loss Mitigation
Loss Mitigation Tools are designed to reduce overall loss in the portfolio by helping qualified customers These programs are targeted toward helping customers navigate through short-term cash flow issues Payment Deferral Used for customers with short-term / temporary hardships Allows customer to def
Slide 23: Credit Performance
Credit Performance
Slide 24: Front Book 87% of Portfolio
Front Book 87% of Portfolio (Less than or equal to 36% APR loans) Front Book defined as loans originated 4Q 22 and onwards Back Book defined as 4Q 21 to 3Q 22 originations plus all delinquent renewals associated with loans originated prior to 4Q 22 Other defined as loans originated before 4Q 21 Tota
Slide 25: Portfolio Credit Metrics
Portfolio Credit Metrics (Less than or equal to 36% APR loans) (1) Loan sales of late-stage delinquent accounts in 4Q 22 and 4Q 23 accelerated 1Q charge-offs into 4Q 4Q 24 delinquency of 7.0% compared to 6.6% in 4Q 23 4Q 23 delinquency was inclusive of an estimated 70 basis point reduction from the
Slide 26: Origination Metrics by Product
Origination Metrics by Product (Less than or equal to 36% APR loans) FICO Original Term APR Original Loan Balance (1) The 4Q 22 increases in original term and original balance in the convenience check portfolio were due to targeted campaigns of large checks to former borrowers (1) (1)
Slide 27: Net Loss Curves
Net Loss Curves (Less than or equal to 36% APR loans) 2019 and 2020 vintages were favorably impacted by government stimulus Note: Data as of 12/31/2024 2021 and 2022 back book vintages had elevated yet manageable loss levels that were impacted by peak inflation (our bond ratings support that loss le
Slide 28: Consistent Credit Performance for 144a Transactions
Consistent Credit Performance for 144a Transactions (1) Increase for RMIT 2022-2 was due to normal seasoning of the collateral pool Note - RMIT 2024-1 and 2024-2 were excluded due to their unseasoned pools Note - Credit performance for ABS transactions reflects results during their revolving periods
Slide 29: Payment Channel Mix
Payment Channel Mix (Less than or equal to 36% APR loans) Significant reduction in cash and check payments in branch 83% of payments received by RM are currently made electronically (ACH and Debit)
Slide 30: Appendix
Appendix
Slide 31: Consolidated Income Statements
Consolidated Income Statements
Slide 32: Consolidated Balance Sheets
Consolidated Balance Sheets
Slide 33: ¢ REGIONAL =
¢ REGIONAL = MANAGEMENT. nyse NYSE