Onemain Holdings, Inc. · NYSE:OMF
Onemain — Springleaf Holdings — Q3 2014 Earnings Presentation
21 slides from Onemain's earnings presentation, Nov 14, 2014
Slide 1: 3Q14 Earnings Presentation
3Q14 Earnings Presentation Three months ended September 30, 2014 Springleaf Holdings, Inc. (LEAF) November 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 is comp
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: 3Q14 Highlights
3Q14 Highlights ($ in thousands) 3Q14 2Q14 3Q13 Consumer & Insurance(1) $62,615 $60,034 $44,907 Acquisitions & Servicing(2) 38,760 33,957 26,488 Pretax Core Earnings(3) $101,375 $93,991 $71,395 Income Taxes(4) (37,509) (34,777) (26,416) Core Earnings(3) $63,866 $59,214 $44,979 Net Income Attributabl
Slide 5: Branch Receivables Growth and Scalability
Branch Receivables Growth and Scalability Branch consumer receivables and origination volume increased 20%+ year‐over‐year – Origination volume of $924 million, versus $767 million in 3Q13; ~900K customer accounts, up 12% y‐o‐y – Launch of direct auto finance in June 2014 expands LEAF’s product of
Slide 6: Consumer Loan Performance
Consumer Loan Performance Yield and net losses stable in the quarter Net charge‐offs and delinquencies exhibit normal seasonal trends Enhanced analytics driving real time risk‐adjusted pricing Consumer Credit Performance Remains Strong(1) 30.0% 27.0% 27.0% 25.8% 25.9% 24.1% 25.0% 22.9% 20.0% 1
Slide 7: Acquisitions and Servicing
Acquisitions and Servicing Pretax income for 3Q14 of $39 million versus $34 million in the prior quarter(1) Charge‐offs continue to decline; enhancing slowdown of portfolio run‐off 2013‐A SpringCastle securitization refinanced Collateral & Funding Structure SpringCastle Credit Performance 9/30
Slide 8: 3Q14 Summary Financial Results
3Q14 Summary Financial Results ($ in thousands) 3Q14 2Q14 3Q13 Consumer & Insurance(1) $62,615 $60,034 $44,907 Acquisitions & Servicing(2) 38,760 33,957 26,488 (5) Pretax Core Earnings(3) $101,375 $93,991 $71,395 Income Taxes(4) (37,509) (34,777) (26,416) Core Earnings(3) $63,866 $59,214 $44,979 Net
Slide 9: 2014 Updated Guidance
2014 Updated Guidance Core Consumer Operations(1) FY 2014E Range Guidance as of 6/30/14 Guidance as of 9/30/14 Consumer Net Finance Receivables $3.70bn — $3.85bn $3.75bn — $3.85bn Consumer Yield 26.85% — 27.35% 26.75% — 27.00% Consumer Risk Adjusted Yield (2) 21.85% — 22.35% 21.75% — 22.25% Acquisit
Slide 10: Financial Supplement
. Financial Supplement Financial
Slide 11: Consolidated Balance Sheet (Push Down Accounting)
Consolidated Balance Sheet (Push Down Accounting) (unaudited, in thousands) 9/30/14 12/31/13 1 Cash and Cash Equivalents $1,970,512 $431,409 2 Investment Securities 1,723,381 582,090 3 Net Finance Receivables: 4 Personal Loans & Retail Sales Finance 3,664,109 3,270,615 5 SpringCastle Portfolio 2,083
Slide 12: Consolidated Income Statement (Push Down Accounting)
Consolidated Income Statement (Push Down Accounting) (unaudited, in thousands, except per share statistics) 3Q14 2Q14 3Q13 1 Finance Charges $435,445 $530,086 $583,926 2 Finance Receivables Held for Sale Originated as Held for Investment 47,679 2,664 0 3 Total Interest Income 483,124 532,750 583,926
Slide 13: Core Earnings (Non-GAAP)
Core Earnings (Non‐GAAP) (unaudited, in thousands) 3Q14 2Q14 3Q13 1 Interest Income $367,171 $357,440 $351,519 2 Interest Expense (58,151) (59,012) (60,659) 3 Provision for Finance Receivable Losses (84,419) (88,275) (98,836) 4 Net Interest Income after Provision 224,601 210,153 192,024 5 Insurance
Slide 14: Core: Consumer & Insurance Segments
Core: Consumer & Insurance Segments (unaudited, in thousands) 3Q14 2Q14 3Q13 1 Interest Income $236,190 $220,396 $188,601 2 Interest Expense (40,466) (40,905) (38,241) 3 Provision for Finance Receivable Losses (56,087) (47,876) (38,174) 4 Net Interest Income after Provision 139,637 131,615 112,186 5
Slide 15: Core: Acquisitions & Servicing Segment
Core: Acquisitions & Servicing Segment (unaudited, in thousands) 3Q14 2Q14 3Q13 1 Interest Income $130,981 $137,044 $162,918 2 Interest Expense (17,685) (18,107) (22,418) 3 Provision for Finance Receivable Losses (28,332) (40,399) (60,662) 4 Net Interest Income after Provision 84,964 78,538 79,838 5
Slide 16: Non-Core: Real Estate Segment
Non‐Core: Real Estate Segment (unaudited, in thousands) 3Q14 2Q14 3Q13 1 Finance Charges $53,568 $134,087 $170,772 2 Finance Receivables Held for Sale Originated as Held for Investment 41,468 2,552 0 3 Total Interest Income 95,036 136,639 170,772 4 Interest Expense (83,795) (95,492) (131,699) 5 Prov
Slide 17: Non-Core: Other
Non‐Core: Other (unaudited, in thousands) 3Q14 2Q14 3Q13 1 Interest Income $3,850 $4,311 $10,000 2 Interest Expense (1,837) (1,830) (3,323) 3 Provision for Finance Receivable Losses (1,290) (4,302) (2,361) 4 Net Interest Income (Loss) after Provision 723 (1,821) 4,316 5 Insurance 14 16 18 6 Investme
Slide 18: Reconciliation – Push-Down Accounting to Historical / Pretax Core Earnings
Reconciliation – Push‐Down Accounting to Historical / Pretax Core Earnings (unaudited, in thousands) 3Q14 2Q14 3Q13 1 1 Push‐Down Accounting Pretax Income (Loss) Attributable to Springleaf $661,072 $117,143 ($123,292) 2 Finance Charges (10,856) (34,248) (51,635) 3 Finance Receivables Held for Sale O
Slide 19: Appendix
@ Springleaf 19
Slide 20: Liquidity and Funding at 9/30/14
Liquidity and Funding at 9/30/14 Strong and stable liquidity position – $2.8 billion of cash and highly liquid investment securities; $1.2 billion committed undrawn funding capacity Weighted average cost of funds of 5.42% in 3Q14, up 9 bps y‐o‐y (1,2) Significantly reduced leverage with the sa
Slide 21: 2014-A SpringCastle Refinancing
2014‐A SpringCastle Refinancing Refinancing Summary $3,000 In October 2014, SpringCastle issued 5 classes of asset‐backed notes in a private placement transaction $2,621 $2,500 – Proceeds from 2014‐A were used to repay in full the SpringCastle 2013‐A securitization (UPB of $1.46 billion) – Co‐issu