Onemain Holdings, Inc. · NYSE:OMF
Onemain — Springleaf Holdings — Q1 2014 Earnings Presentation
19 slides from Onemain's earnings presentation, May 14, 2014
Slide 1: 1Q 2014 Earnings Presentation
1Q 2014 Earnings Presentation Three Months Ended March 31, 2014 May 14, 2014
Slide 2: Important Information
Important Information The following pages are part of a presentation by Springleaf Holdings, Inc. (the "Company") in connection with reporting quarterly financial results and are intended to be viewed as part of that presentation. No representation is made that the information in these pages are com
Slide 3: Non-GAAP Financial Measures
Non‐GAAP Financial Measures We present core earnings as a “non‐GAAP financial measure” in this presentation. This measure is derived on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Please refer to the Fina
Slide 4: Highlights
Highlights ($ in thousands) 1Q14 4Q13 1Q13 Consumer & Insurance(1) $48,822 $41,015 $40,231 Acquisitions & Servicing(2) 30,658 35,831 0 Pretax Core Earnings(3) $79,480 $76,846 $40,231 Estimated Income Taxes(4) (29,408) (28,433) (14,885) Core Earnings $50,072 $48,413 $25,346 Net Income (Loss) Attribut
Slide 5: Branch Receivables Growth and Scalability
Branch Receivables Growth and Scalability Strong Consumer Receivables Growth Proven History of Scalability Consumer Receivables ($ mm)(1) Consumer Receivables Per Branch ($ mm)(1) $3,500 $4.0 $3.8 $3.8 $3,250 $3,141 $3,159 $3.5 $3,000 $3.1 $3.1 $2,750 $3.0 $2,545 $2,559 $2,500 $2,389 $2,414 $2.5 $2.
Slide 6: Consumer Loan Performance
Consumer Loan Performance Risk adjusted yield has grown almost 1000 bps over the last 5 years, including an increase of 60 bps q‐o‐q(1) Enhanced analytics driving real time risk‐adjusted pricing Yield Continues to Trend Up (2) 30.0% 26.3% 26.9% 25.8% 25.4% 25.0% 24.1% 22.9% 20.0% 15.0% 21.3% 21.
Slide 7: Acquisitions and Servicing
Acquisitions and Servicing SpringCastle Portfolio has exhibited solid performance since April ’13 acquisition; servicing transferred in Sept ’13 Pretax income for 1Q14 of $31 million(1); includes servicing fee income – Life to date pretax income (12 months) of $140 million(1) Springleaf equity
Slide 8: Liquidity and Funding
Liquidity and Funding Strong and stable liquidity position – $764 million cash and $1 billion committed undrawn funding capacity from 3 major banks Prepaid $750 million secured term loan due 2019 Completed $559 million consumer securitization in March 2014 (COF: 2.62%); strong investor demand
Slide 9: 1Q14 Summary Financial Results
1Q14 Summary Financial Results ($ in thousands) 1Q14 4Q13 1Q13 Consumer & Insurance(1) $48,822 $41,015 $40,231 Acquisitions & Servicing(2) 30,658 35,831 0 Pretax Core Earnings(3) $79,480 $76,846 $40,231 Estimated Income Taxes(4) (29,408) (28,433) (14,885) Core Earnings $50,072 $48,413 $25,346 Net In
Slide 10: 2014 Updated Guidance
2014 Updated Guidance Core Consumer Operations(1) FY 2014E Range Guidance as of 12/31/13 Guidance as of 3/31/14 Consumer Net Finance Receivables $3.60bn — $3.75bn $3.60bn — $3.75bn Consumer Yield 26.75% — 27.25% 27.00% — 27.50% Consumer Risk Adjusted Yield(2) 22.00% — 23.00% 22.00% — 22.50% Acquisit
Slide 11: Financial Supplement
Financial Supplement QDSpringleaf 11
Slide 12: Consolidated Income Statement (Push Down Accounting)
Consolidated Income Statement (Push Down Accounting) (unaudited, in thousands, except per share statistics) 1Q14 4Q13 1Q13 1 Interest Income $552,637 $576,517 $413,038 2 Interest Expense (205,420) (218,881) (231,293) 3 Provision for Finance Receivable Losses (160,878) (188,600) (94,486) 4 Net Intere
Slide 13: Core Earnings (Non-GAAP)
Core Earnings (Non‐GAAP) (unaudited, in thousands) 1Q14 4Q13 1Q13 1 Interest Income $355,622 $360,060 $160,483 2 Interest Expense (62,920) (62,519) (36,744) 3 Provision for Finance Receivable Losses (98,225) (119,641) (19,961) 4 Net Interest Income after Provision 194,477 177,900 103,778 5 Insurance
Slide 14: Core: Consumer & Insurance Segments (Historical)
Core: Consumer & Insurance Segments (Historical) (unaudited, in thousands) 1Q14 4Q13 1Q13 1 Interest Income $209,695 $202,084 $160,483 2 Interest Expense (40,726) (37,890) (36,744) 3 Provision for Finance Receivable Losses (45,275) (64,984) (19,961) 4 Net Interest Income after Provision 123,694 99,2
Slide 15: Core: Acquisitions & Servicing Segment
Core: Acquisitions & Servicing Segment (unaudited, in thousands) 1Q14 4Q13 1 Interest Income $145,927 $157,976 2 Interest Expense (22,194) (24,629) 3 Provision for Finance Receivable Losses (52,950) (54,657) 4 Net Interest Income after Provision 70,783 78,690 5 Portfolio Servicing Fees from SpringCa
Slide 16: Non-Core: Real Estate Segment (Historical)
Non‐Core: Real Estate Segment (Historical) (unaudited, in thousands) 1Q14 4Q13 1Q13 1 Interest Income $155,044 $162,746 $187,031 2 Interest Expense (111,797) (118,658) (154,379) 3 Provision ‐ TDR (45,141) (42,733) (48,131) 4 Provision ‐ Non‐TDR (16,187) (23,687) (21,951) 5 Net Interest Income after
Slide 17: Non-Core: Other (Historical)
Non‐Core: Other (Historical) (unaudited, in thousands) 1Q14 4Q13 1Q13 1 Interest Income $5,104 $7,735 $15,344 2 Interest Expense (2,143) (2,806) (4,834) 3 Provision for Finance Receivable Losses (965) (3,185) (993) 4 Net Interest Income after Provision 1,996 1,744 9,517 5 Insurance 16 22 20 6 Invest
Slide 18: Reconciliation – Push-Down Accounting to Historical / Pretax Core Earnings
Reconciliation – Push‐Down Accounting to Historical / Pretax Core Earnings (unaudited, in thousands) 1Q14 4Q13 1Q13 1 1 Push‐Down Accounting Pretax Income (Loss) Attributable to Springleaf $82,842 $12,542 ($13,877) 2 Interest Income (36,867) (45,976) (50,180) 3 Interest Expense 28,560 34,898 35,336
Slide 19: Appendix: Consumer Loan Credit Performance
Appendix: Consumer Loan Credit Performance Charge‐off Trends(1) Gross Charge‐off Recovery Net Charge‐off Ratio 7.5% 6.0% 5.5% 5.6% 5.5% 5.6% 5.3% Gross 4.8% Charge‐off 4.5% 4.5% 4.2% 4.5% 3.0% 3.8% 4.3% 3.7% 5.0% 5.0% Net 3.6% 2.7% 3.2% 3.2% Charge‐off 2.9% 3.8% 1.5% 1.3% 1.1% 1.2% 1.3% Recovery 1.0