Regional Management Corp. · NYSE:RM
Regional Management — ABS East Conference 2017
20 slides from Regional Management's conference presentation, Sep 18, 2017
Slide 1: Regional Management Corp. ABS East Conference September 18–19, 2017
Exhibit 99.1 Regional Management Corp. ABS East Conference September 18–19, 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: Company Overview
Company Overview Consumer Finance Installment Lender 30 Years of Operating History Ability to Repay, Brick and Mortar Business Model Headquartered in Greenville, SC Operations in the Southeast, Southwest, and Mid Atlantic Near Prime to Non Prime Customer Base Parent Company is a Delaware Corporation
Slide 4: Operating History
Operating History RM Launches Portfolio New Nortridge RM Founded Private RM Enters Reaches $500 RM Enters in South Equity Invests Loan Oklahoma Million in Virginia Carolina in RM Size Management System 1987 2001 2004 2007 2009 2011 2012 2013 2014 2015 2016 2017 RM Operates RM Closes RM Enters GA RM
Slide 5: Management Team and Board of Directors
Management Team Board of Directors Peter Knitzer President and Chief Executive Officer John Schachtel Don Thomas Dan Taggart Jim Ryan Joseph Manavalan Ralph Warchol Brian Fisher Chief Operating Chief Financial Chief Risk Chief Marketing Chief Digital Chief Information General Counsel Officer Officer
Slide 6: Senior Team Bios
Senior Team Bios Peter joined the RM Board of Directors in July 2015, and has served as Chief Executive Officer since August 2016 and President since May 2017. Prior to joining RM, he served as EVP and Head of Payments at CIBC, and President and Director at E*TRADE Bank. He also spent 14 years at Ci
Slide 7: Strong Corporate Governance and Board of Directors
Strong Corporate Governance and Board of Directors Board of Directors (Non?Employee Directors) Al de Molina Steve Freiberg Mike Dunn Carlos Palomares Roel Campos Chairman of Senior Advisor to Former CEO and President and Partner at RM’s Board of The Boston Executive CEO of SMC Hughes Hubbard Directo
Slide 8: Significant Market Opportunity
Significant Market Opportunity There are approximately 115 million Americans that generally align with our customer base. We believe that the personal installment loan segment is an approximately $75 billion market opportunity. Regional has assembled an experienced leadership team to help drive the
Slide 9: Strong Liquidity Profile
Strong Liquidity Profile Long history of liquidity support from a strong group of banking partners Diversified funding platform with an ABL, warehouse facility, and private securitization Senior Revolver (ABL) Warehouse Facility Private Securitization Size: $638 Million Size: $125 Million Size: $75
Slide 10: Branch Network Overview
Branch Network Overview Branch Overview Geographic Footprint Approximately 350,000 individual borrower accounts through network of 347 branches as of June 30, 2017 Date of Entry: Branch personnel establish and develop customer relationships throughout life of loan SC: 1987 17 - Today, most loan proc
Slide 11: Regional Product Offerings
Regional Product Offerings Product diversity allows Regional to offer customers various products as credit needs change Diverse product offerings provide a competitive advantage versus monoline lenders Small Large Automobile Retail Short term cash needs Vacation expenses New and used car Home furnis
Slide 12: Multi-Channel Origination Platform
MultiChannel Origination Platform Branches are foundation of Regional’s multichannel strategy Mail campaigns attract ~ 100,000 new customers per year to Regional Dealership and retailers serve as “virtual” branches Net Ledger Balances as of June 30, 2017 Branch Originated NonBranch Originated Mail W
Slide 13: Consistent Portfolio Growth Through Multiple Cycles
Consistent Portfolio Growth Through Multiple Cycles $800 $700 $600 $500 Millions $400 $300 $200 $100 $0 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 13
Slide 14: Large Loan Originations
Millions $ $ $ $ $ $ $ $ * 0 5 10 15 20 25 30 35 Data Feb07 May07 Large includes Aug07 large Nov07 Feb08 Loan loans May08 <=36% Aug08 only Nov08 Feb09 May09 Aug09 Nov09 Originations Feb10 May10 Aug10 Nov10 Feb11 May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov1
Slide 15: Recent Portfolio Growth Driven by Large Loans
Millions $ $ $ $ $ $ $ $ 0 $ 100 200 300 400 500 600 700 800 Jan14 Recent Feb14 Mar14 Apr14 May14 Jun14 Jul14 Portfolio Aug14 Sep14 Oct14 Nov14 Growth Dec14 Jan15 Feb15 Mar15 Driven Apr15 SMALL May15 by Jun15 LARGE Jul15 Aug15 Large Sep15 AUTO Oct15 Nov15 Loans RETAIL Dec15 Jan16 Feb16 Mar16 Apr16 M
Slide 16: Large Loan Origination Metrics
Large Loan Origination Metrics Monthly Payment Original Term $225 45 $200 40 $175 35 $150 30 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Average Monthly Pmt Weighted Average Original Term (in months) APR Amount Financed 30%
Slide 17: Large Loan Portfolio Performance
Large Loan Portfolio Performance Average FICO Origination Average Loan Amount Origination Origination FICO has generally increased over time Loan size has generally increased over time as credit has 628 improved 626 622 623 $4,980 $4,757 $4,881 $3,921 $4,270 597 2014 2015 2016 Q1 2017 Q2 2017 2014 2
Slide 18: Servicing Overview
Servicing Overview Regional employs a hybrid strategy of localized collections efforts through the branches and centralized support for late stage collections Early Stage Late Stage Collections Collections Collection efforts primarily Late stage cocollection support to performed in the branches the
Slide 19: Historical Financial Performance
Historical Financial Performance Net Income ($ in millions) $28.8 $30 $25.4 $23.4 $24.0 $25 $21.2 $20 Recent earnings $16.4 $14.8 $13.8 growth driven by $15 $10 $9.9 combination of $6.5 volumerelated $5 $3.1 revenue growth $0 and more 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q2 ‘17 YTD norm
Slide 20: Regional Management - NYSE: RM
REGIONAL MANAGEMENT TM RM LISTED NYSE