Regional Management Corp. · NYSE:RM
Regional Management — Jefferies Crossover Consumer Finance Summit 2017
16 slides from Regional Management's conference presentation, Dec 7, 2017
Slide 1: Jefferies Crossover Consumer Finance Summit
Jefferies Crossover Consumer Finance Summit December 7, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 expectations or beliefs concer
Slide 3: Investment Highlights
Investment Highlights Numerous Avenues for Additional Growth Attractive Long-Term Market Opportunity 10 Consecutive Quarters of Double-Digit Receivable Growth Significantly Upgraded Infrastructure Stable Credit Performance Deep Management Experience 3
Slide 4: Company Overview
Company Overview History Consumer finance company founded in 1987 Focused on consumer installment lending IPO: March 2012; NYSE: RM Who We Are 344 branches in 9 southeastern and southwestern U.S. states Core portfolio of small and large personal loans (“core loans”), and retail loans - Large loans h
Slide 5: 2018 & 2019: Realize the Benefits of Our Investments
2018 & 2019: Realize the Benefits of Our Investments Recent significant investments should accelerate top and bottom line growth in the coming years. ï,§ With modernized infrastructure, plan to increase de novo branches in 2018 ï,§ Hybrid approach to growth: increased receivables per branch and de n
Slide 6: Significant Market Opportunity
Significant Market Opportunity Regional’s 360,000 customer accounts represent 0.3% of the approximately 115 million Americans that generally align with the Company’s customer base. Regional believes that most of this population is underserved and provides an attractive market opportunity. $3.1 Trill
Slide 7: Hybrid Approach to Growth
Hybrid Approach to Growth Branch Overview – Hybrid Approach to Growth ï,§ 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 ï,§ Many branche
Slide 8: Core Loan Portfolio Growth Driven by Large Loan Receivables
Core Loan Portfolio Growth Driven by Large Loan Receivables Since adding large loans as a core product, large loan receivables have grown by nearly 600%, from $46 million to $309 million, in less than three years (in millions) $750 Small $672 Loans Large $593 Core $485 of $500 $309 $235 $366 $147 Re
Slide 9: Multi-Channel Origination Platform Provides Broad Reach
Multi-Channel Origination Platform Provides Broad Reach ï,§ Branches are foundation of Regional’s multi-channel strategy ï,§ Mail campaigns attract ~100,000 new customers per year to Regional ï,§ Continued expansion of digital channel / online lending capabilities to acquire customers Branch Origina
Slide 10: Multi-Product Offering Fits Customer Needs
Multi-Product Offering Fits Customer Needs ï,§ Product suite provides multiple solutions for customers as their credit needs changeï,§ Easy to understand products based on credit underwriting and ability to pay Small Large Retail ï,§ Short-term cash needsï,§ Vacation expensesï,§ Home furnishings Cus
Slide 11: High Customer Satisfaction
High Customer Satisfaction 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 customers would apply to Regio
Slide 12: Diverse Funding and Liquidity Profile
Diverse Funding and Liquidity Profile ï,§ Continue to diversify sources of funding to support future growthï,§ Plan to complete first capital markets ABS transaction in 2018 Amended and Upsized Senior Revolver ï,§ Committed line of $638 million; $459 million outstanding at September 30, 2017 ï,§ Con
Slide 13: Deep Management Experience
Deep Management Experience Peter Knitzer • 30+ years of consumer financial services experience President and • Spent 14 years at Citi in various senior roles, including Chairman & CEO of Citibank North America CEO • Prior to joining Regional, was EVP and Head of Payments at CIBC, and President and D
Slide 14: Recent Historical Financial Performance
Recent Historical Financial Performance Net Income ($ in millions) $30 $23.4 $24.0 $25 $19.1 $17.6 $20 $14.8 $15 ï,§Receivables $10 and revenue $5 have grown $0 in parallel 2014 2015 2016 3Q 16 3Q 17 and over YTD YTD time should Total Receivables and Net Credit Losses Total Revenue create opportunit
Slide 15: Investment Highlights
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Slide 16: CREGIONAL
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