Slide 1: Regional Management Corp. 1Q 2016 Earnings Presentation
Exhibit 99.2 Regional Management Corp. 1Q 2016 Earnings Presentation April 28, 2016 RM LISTED NYSE
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and the responses to various questions contain forward-looking statements, which reflect our current views with respect to, among other things, the Company’s operations and financial performance. You can identify these forward-looking statements by the use of
Slide 3: 1Q16 Highlights – A Solid Quarter
1Q16 Highlights – A Solid Quarter Net income of $5.2 million, up $1.1 million or 27% vs. 1Q15 Diluted EPS of $0.40 vs. $0.31 in 1Q15 8% year-over-year revenue growth Bolstered by low seasonal portfolio liquidation 1Q16 credit provision affected by tightened underwriting in 2H15; unusual 1Q15 release
Slide 4: Net Income Follows Seasonal Pattern of Ledger Growth
Net Income Follows Seasonal Pattern of Ledger Growth Net Income Millions $10.0 $7.5 $5.0 $2.5 $0.0 $3.4 $4.1 $5.4 $6.5 $7.4 $1.2 Charged-Off Debt Sale $5.2 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 NI YoY% (60%) (27%) 23% 366% 118% 27% EPS (1) $0.26 $0.31 $0.41 $0.50 $0.56 $0.40 Ending Net Rec
Slide 5: Revenue Growth Driven by Strong Volume and Stabilizing Yields
Revenue Growth Driven by Strong Volume and Stabilizing Yields Total Revenue Millions $60.0 $55.0 $50.0 $45.0 $52.5 $53.0 $55.1 $56.7 $56.7 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Sequential (2.4%) 0.9% 4.0% 2.9% 0.0% Year / Year 5.9% 11.7% 2.2% 5.4% 7.9% Total Yields Yields (% of ANR) 42.5% 40.0% 37
Slide 6: Volume Change By Product Category
Volume Change By Product Category in millions Ending Net Receivables 1Q16 vs. 4Q15 vs. 1Q15 Branch small loans $148.7 ($9.1) $27.1 Convenience checks $161.8 ($18.6) ($8.2) Large loans $162.3 $15.7 $99.0 Core loan products $472.8 ($11.9) $117.8 Automobile loans $106.3 ($9.8) ($40.4) Retail loans $28.
Slide 7: Losses Affected by Tightened Underwriting; Credit Quality Stable
Losses Affected by Tightened Underwriting; Credit Quality Stable Net Charge-Offs & Provision for Credit Losses Net Charge-Offs in Millions $16.0 $12.0 $8.0 $4.0 $0.0 $13.3 $12.9 $12.5 $11.8 $2.0 $15.0 $16.0 $12.0 $8.0 $4.0 $0.0 Total Provision in Millions 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Repo
Slide 8: Delinquencies Show Important Improvement
Delinquencies Show Important Improvement 1Q 2016 30+ day delinquency level improved to a low of 6.2% - Total delinquencies in 1Q 2016 were 16.7% Current profile normally indicative of next two quarters of loss - Last 3 delinquency buckets expected to roll through in second quarter 30+ Delinquency Tr
Slide 9: Good Sequential and Year-Over-Year Expense Management
Good Sequential and Year-Over-Year Expense Management Total G&A Expenses Millions $40.0 $30.0 $20.0 $10.0 $0.0 $32.6 $28.2 $26.2 $28.6 $29.8 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Year / Year 64.0% 21.7% 3.6% 0.5% (8.6%) Flat expense profile despite 33 additional branches 1Q16 vs. 1Q15 1Q15 include
Slide 10: Strategic Updates
Strategic Updates Nortridge loan system Virginia branches – proof of concept Plan to rollout to all branches Expect increased systems costs in 2016 to facilitate conversion Marketing update LendingTree Search Engine Optimization and Analytics www.regionalfinance.com (links to financial literacy cour
Slide 11: Estimated Incremental Costs From 2016 Initiatives
Estimated Incremental Costs From 2016 Initiatives in millions 1Q16 2Q16 3Q16 4Q16 Automobile-backed amortizing loan $0.2 $0.2 $0.1 $0.1 Stock repurchase program 0.0 0.2 0.2 0.2 Loan system conversion costs 0.4 0.9 0.8 0.5 Pre-tax impact of initiatives $0.6 $1.3 $1.1 $0.8 After-tax impact of initiati
Slide 12: Regional Management Corp.
Regional Management Corp. CONFIDENTIAL 12 RM LISTED NYSE Regional Management Corp.