Regional Management Corp. · NYSE:RM
Regional Management — Investor Presentation (May 2024)
18 slides from Regional Management's investor presentation, May 8, 2024
Slide 1: Investor Presentation May 9th, 2024
Investor Presentation May 9th, 2024
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: Strategic Imperatives
Strategic Imperatives 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 loss
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 De
Slide 6: Company Overview
Company Overview 6 Founded 1987 NYSE Listed: RM 343 branches 19 states Total receivables of $1.7 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 foo
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 its 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 Excellent net promoter score of 64 (1) 90+% favorable ratings for key attributes (1): Loan process was quick, easy, and understandable People are professional, responsive, respectful, knowledgeable, helpful, and friendly 92% of customers would apply to Regional Finance fir
Slide 9: Product Offerings
Product Offerings Multi-Channel Acquisition Small Loans Large Loans In Branch $196.3MM Originated 67% Large/33% Small Direct Mail $98.8MM Originated Convenience Check Loans Digital $31.2MM Originated Digital Lead Generation Partnership Affiliates Customer Need Short-term cash needs Bill payment Back
Slide 10: Financial Overview: Originations
Financial Overview: Originations Record originations for a first quarter and up 7.6% year-over-year Record direct mail originations for a first quarter of $98.8 million, up from $76.0 million in 1Q 23 Originations were concentrated on programs to present and former borrowers, who perform better th
Slide 11: Financial Overview: Credit
Financial Overview: Credit 1Q 24 delinquency of 7.1% compared to 6.9% in 4Q 23 (inclusive of a 0.9% reduction from the loan sale in 4Q 23) 30+ days past due of $124.2 million compares favorably to loan loss reserves of $187.1 million as of 1Q 24 1Q 24 net credit loss rate of 10.6% included an esti
Slide 12: Financial Overview: Key Financial Results
Financial Overview: Key Financial Results In millions In millions Net Income In millions Challenging macroeconomic conditions have impacted recent returns and profitability levels Continued growth in account base and portfolio in controlled and profitable manner 1Q 2024 revenue growth outpaced G&A e
Slide 13: Strong Funding Profile
As of March 31, 2024, total unused capacity was $478 million (subject to borrowing base) Available liquidity of $169 million as of March 31, 2024 Fixed-rate debt represented 81% of total debt as of March 31, 2024, and had a weighted-average revolving duration of 1.0 years Strong Funding Profile
Slide 14: Long-Term, Sustainable, and Profitable Growth
Long-Term, Sustainable, and Profitable Growth 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 centr
Slide 15: Appendix
Appendix
Slide 16: 1Q Results and 2Q Outlook
1Q 24 Results and 2Q Outlook 16 Key Metrics 1Q 24 Results 2Q 24 Outlook ENR Growth/(Liquidation) ($27.1) million ~$30.0 - $35.0 million ANR Growth/(Liquidation) $3.5 million ~($15.0 - $20.0) million(1) Total Revenue Yield 50 basis points sequential increase ~50 basis points sequential decrease Net C
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 enhan
Slide 18: CREGIONAL oe
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