Regional Management Corp. · NYSE:RM
Regional Management — Q4 2019 Earnings Presentation
20 slides from Regional Management's earnings presentation, Feb 25, 2020
Slide 1: 4Q 2019 Earnings Call Supplemental Presentation
Exhibit 99.2 4Q 2019 Earnings Call Supplemental Presentation February 25, 2020
Slide 2: Legal
Legal representation Quarterly be presentation questions instead strategies, “believes,” are contemplated expectations risks operations the recessionary Company’s becomes implemented, expected revenue Company); expenses; guarantee this by measures. available law. about ability presentation associate
Slide 3: 4Q 19 Income Highlights
4Q 19improved year-over-year ratio growth, IncomeHighlights 87.8 15.7 offset10.8 75.0 by on 0.8% Fed •4.9 12.8 17.4% Net over 45.6% rate 17.0% income increase prior decreases ROA Total of year in $15.7 5.6% Revenue 3to average dollars 15.3% 4.6% million, finance 98.0 in 4Q 1.0% millions or19 83.7 $1
Slide 4: Finance receivables growth by loan product
19 Consecutive from $385 1,004 $888 17.4%prior $414 $932 1,071 18.5% year $438 $912 67Ending 6.7% 4Quarters $422 $973 vs. 3Q 195 Finance $431 $1,042 19 of 22.3% Year-Over-Year vs. $449 $1,105 Receivables 4Q Automobile $462 18$63 in$13 millions 6.0% 2.9% Double-Digit Loans $173 $25 3Q7218.5% 17 5.7%
Slide 5: Revenue and yield growth
14 large as changes $869 (0.5%) 33.3% Total $72.1 Insurance Consecutive $913 Revenue $72.6 32.5% (0.5%) loan inIncome total $925 $72.4 portfolio 32.7% (0.3%) Yield Quarters revenue $934 Other $77.9 Interest 33.2% 0.5% $1,011 growth Income yield $83.7 of Year-Over-Year 0.8% 32.9% and $1,071 outpaced
Slide 6: Net credit loss trends
Recent losses) -(0.8%) 4Q- -18 - Hurricane 1Q that (0.7%) Net19Credit shifted 2Q (0.4%) losses 19Loss to3Q net (0.1%) - Trends 19 - credit 0.4% 4Q0.1% 19 •0.5% losses Annualized Annualized 0.7% -following 0.1% 1.2% 0.4% net %0.5% credit the of0.6% AFR business 0.1% loss -Net - Net rate 7.8% Credit p
Slide 7: Allowance and provision for credit losses
Recent (2.0%) 18 $48.9 Allowance 27.9% Revenue 2Q$47.8 18 30.3% 0.3% Provision 3Q and 3Q for $48.5 17 1.9% AFR 18 28.3% Credit 4Q 4Q Trends $55.3 Provision (3.8%) 17 1828.6% Losses 1Q 1Q$58.3 7 (0.1%) 18 (1) 19 30.5% for (in 2Q 2Q Annualized $56.4 millions) Credit 18 19 YoY 26.7% 3Q 3Q $57.2 Ä Losse
Slide 8: Delinquency trends
Seasonal prior 0.2% 0.3% 7.0% 19 2Qyear 0.5% (0.1%) 6.4% 19 Pattern 3Q 86.6% 0.1% 30+ -19 0.1% 4Q DQ of (0.5%) 7.2% Delinquency 19 0.2% 3Q2.9% %17 (0.5%) of 0.1% 4QEFR 3.4% 17 (0.1%) 90+ •Delinquency 1Q 4Q 3.3% DQ 18 19(0.3%) 2.6% 3Q 2Q delinquency 17 182.9% $30.3 in 4Q 3QMillions 17 18 3.5% $34.0 i
Slide 9: Achieving Operating Leverage
Achieving 18 16.2% Millions 3Q 18 16.5% Operating 4Q Operating 18 16.1% 1QExpense 19 16.5% Leverage 2Q 19 16.2% Ratio 3Q While 19 Total 15.9% 4Q Investing SG&A 1915.3% Year/Year Expenses in14.0% OurÄBusiness 15.0% (0.1%) % of AFR 16.0% 0.8% (1) Annualized (1) (0.7%) 17.0% (1.7%) 18.0% general 19.0%
Slide 10: Achieving Operating Leverage
Achieving (0.9%) $0.0 $10.0 (1.1%) Operating $20.0 (2.2%) $30.0 Leverage (2.0%) $40.0 $33.8 $50.0 While$34.0 3QInvesting 17$34.6 4Q 17in $33.2 1Q Our18$35.9 Business 2Q 18$36.6 3Q 1018 $38.2 As4Q % $37.7 of 18 Revenue 1Q$40.2 19 2Q3Q $40.9 1917 3Q48.9% 4Q1917 4Q47.2% 1Q 1918 %2Q 47.6% of Revenue 18
Slide 11: Interest Expense Trend
Interest 11 3.5% % of % AFR of 3.4% Expense AFR Millions 3.5% (1) Trend 3Q 3.9% Interest 174.0% •4Q Currently 17 Expense 4.2% 1Q 18 4.2% have %2Qof$350 4.2% 18 AFR 3Q million 4.1% (1) 18 4Q 3.8% notional 18 1Q 0.0% 19amount 2.0% 2Q 194.0% of 3Qinterest 19 6.0% 4Q8.0% rate 19 YoY caps 10.0% Äto0.5% h
Slide 12: Senior revolver and funding enhancements
Senior better debt maturity through covenants Revolver to April the Amendment and securitization 2022legal Reduced provisions Extended market pricing Added Continued the by 5maturity abasis newstrong points lender to September investor Added Addedflexibility demand flexibility 2022 Changed and totoc
Slide 13: Strong Funding Profile and debt ratios
9.3%2.76 2.45 $287 Senior represents Refer $312 45.8% toRevolver the 0.50 51% $339 Appendix 50.8% 1.00 of$294 Capacity total 90.7% 1.50 $277 for debt 2.00 aUndrawn 54.2% reconciliation $291 • 2.50 $130$69 49.2% 3.00 million Warehouse $59 2017 0% to $34 securitization the 10% 2018 $120 Capacity most
Slide 14: Continued branch growth opportunity
Continued 12/31/18) Receivables 13.7% branches in in the 22 Growth 2020 per prior-year 28 Branch 24 Opportunity 285 period $301 (in thousands) $2,158 • from Considerable $2,601 Existing Ending $2,817 growth and Finance De$793 opportunities Novo Receivables $2,721 Branches $3,213 in Per our 14Branch
Slide 15: Digitally-sourced originations
Digitally-Sourced branches convenience 20.8% New Borrower 21.8% by our checks 10.0% Volume custom Originations cashed 12.0% Thousands credit Large 14.0% scorecards Continue loans Digitally-Sourced 16.0%represented to and 18.0% Accelerate serviced 20.0% 62% Origination by • 22.0% Digital of ourdigita
Slide 16: Appendix
CREGIONAL MANAGEMENT Appendix
Slide 17: Consolidated Income Statements
Consolidated 5,624 99,611 30,160 20,76920,817 87,056 25,95214,793 13,792Income 77,339 26,30513,061 58,993 Statements 63,014 22,7579,456 45,902 Personnel Total 40,257 inOther general thousands 38,948 25,305 income and Income 4Q 22,074 administrative 3,649 19 taxes 4Q94,000 3,112 185,086 2019 13,727 4
Slide 18: Consolidated Balance Sheets
Consolidated insurance receivables 10,607 Unamortized 28,470 earnings 1,158,540 -6,448 -2premiums -$48,829 1,042,613 Deferred 956,395 debt Deferred Balance 204,097 issuance (396,149) $tax 873,943 Sheets 829,483 tax liability asset 168,752 costs in(305,283) 768,553 $thousands 619 (9,607) -712,224 747
Slide 19: Balance Sheet Metrics
Balance We tangible measures financial may 2018 946,385 Intangible 12,010 equity 25.72 utilize not 2017 $to 11,773 23.11 Sheet assets, be 1,149,102 information total are assets non-GAAP 2016 comparable commonly $assets Metrics 12,078 and 20.32 Total 9,438 946,385 tangible 26.1% should $11,783 assets
Slide 20: CREGIONAL
CREGIONAL MANAGEMENT E@REGIONAL i MANAGEMENT |"