EX-99.1 8 d239589dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Regional Management Corp. Announces First Quarter 2017 Results

- Net income of $7.6 million; diluted earnings per share of $0.65 -

- Finance receivable growth of 14.4% from the prior year -

- Total delinquencies as a percentage of finance receivables of 15.7% -

Greenville, South Carolina – May 2, 2017 – Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the first quarter ended March 31, 2017.

First Quarter 2017 Highlights

 

  •   Net income for the first quarter of 2017 was $7.6 million, an increase of 47.5% from the prior-year period. The net income increase was due to growth in the core loan portfolios, as well as a $1.5 million tax benefit from share-based compensation in the first quarter of 2017. Diluted earnings per share for the first quarter of 2017 were $0.65, based on a diluted share count of 11.7 million.

 

  •   Total finance receivables as of March 31, 2017 were $695.0 million, an increase of 14.4%, or $87.6 million, from the prior year, and down 3.2%, or $22.8 million, sequentially due to normal seasonality:

 

  •   Eighth consecutive quarter that total finance receivables have increased at least 10% over the prior-year period.

 

  •   Large loan finance receivables of $242.4 million increased $80.1 million, or 49.3%, from the prior-year period and now represent 35% of the total loan portfolio. Branch small loan finance receivables as of March 31, 2017 were $335.6 million, an increase of 8.1% over the prior year and a decrease of 6.4% sequentially due to typical seasonality.

 

  •   Total revenue for the first quarter of 2017 was $65.8 million, a $9.1 million, or 16.1%, increase from the prior-year period, and a $1.8 million, or 2.8%, increase sequentially.

 

  •   Strong interest and fee income increase of 15.5% driven by a 14.4% increase in receivables compared to the prior-year period.

 

1

Exhibit 99.1

 

  •   Insurance income for the first quarter of 2017 increased $0.9 million from the prior-year period and $2.2 million sequentially. The sequential increase is related to a temporary shift of certain claims expense into provision for credit losses during the Company’s transition to a new insurance provider.

 

  •   Overall yield increase of 40 basis points on a year-over-year basis and 90 basis points sequentially.

 

  •   Provision for credit losses for the first quarter of 2017 was $19.1 million, an increase of $5.3 million compared to the prior-year period. The provision for credit losses included $2.2 million related to a temporary shift of insurance claims expense, as noted above. This line shift had no impact on the Company’s net income.

 

  •   Annualized net credit losses as a percentage of finance receivables were 10.9% (inclusive of 0.5% attributable to the insurance losses noted above), an increase from 9.7% in the prior-year period.

 

  •   Total delinquencies as a percentage of total finance receivables as of March 31, 2017 were 15.7%, a significant reduction from 18.1% as of December 31, 2016 and an improvement from 16.7% as of March 31, 2016.

 

  •   30+ day contractual delinquencies were 6.5%, an improvement sequentially from 7.4% as of December 31, 2016 and a slight increase from 6.2% as of March 31, 2016.

“We continued to experience double-digit year-over-year top-line and overall finance receivables growth during the first quarter,” said Peter R. Knitzer, Chief Executive Officer of Regional Management Corp. “Total finance receivables increased 14% from the prior year, allowing us to generate 16% year-over-year growth in our interest and fee income. Most notably, we continued to successfully grow within our existing footprint, as we generated 13% growth in our same-store finance receivables. Further, the ongoing focus on our core loan categories helped alleviate our typical portfolio seasonal liquidation and puts us in a strong position to grow the business in subsequent quarters.”

“In terms of our credit performance, while our provision and net credit losses were elevated in the quarter as expected, we worked diligently to significantly reduce our total and 30+ day delinquencies during the quarter from their levels at the end of 2016, and our total delinquency of 15.7% is a historic low for Regional Management,” added Mr. Knitzer. “With respect to our new operating platform, we successfully completed the buildout of our enhanced functionality, and we are on schedule to resume converting branches in our remaining states in the second quarter. Overall, we continue to move forward with our growth strategy and the build of our operating system in order to drive long-term shareholder value.”

 

2

Exhibit 99.1

 

First Quarter 2017 Results

Finance receivables outstanding at March 31, 2017 were $695.0 million, a 14.4% increase from $607.4 million in the prior year. Finance receivables increased primarily due to an increase in both the core small and large loan portfolios, enhanced marketing, and the net addition of branches in Virginia. On a sequential basis, finance receivables decreased by $22.8 million from the fourth quarter of 2016 due to normal seasonality.

For the first quarter ended March 31, 2017, the Company reported total revenue of $65.8 million, a 16.1% increase from $56.7 million in the prior-year period. Interest and fee income for the first quarter of 2017 was $59.3 million, a 15.5% increase from $51.3 million in the prior-year period, primarily due to an increase in the portfolios of both small and large loans compared to the prior-year period. Insurance income, net for the first quarter of 2017 was $3.8 million, an increase of $0.9 million from the prior-year period primarily due to a transition in insurance carriers, causing some of the Company’s insurance claims to impact net credit losses instead of insurance income. Other income for the first quarter of 2017 was $2.8 million, a 12.3% increase from the prior-year period and consistent with portfolio growth.

The provision for credit losses in the first quarter of 2017 was $19.1 million, compared to $13.8 million in the prior-year period. The $5.3 million increase was primarily due to an increase in net credit losses of $4.4 million and the temporary shift of insurance claims expense. In the first quarter of 2017, the Company released $0.3 million of allowance for credit losses, compared to $1.2 million in the first quarter of 2016.

Net credit losses were $19.4 million in the first quarter of 2017, compared to $15.0 million in the prior-year period, consistent with portfolio growth and the elevated levels of the last three delinquency buckets in the fourth quarter of 2016. Net credit losses for the first quarter of 2017 included $1.0 million of losses attributable to a temporary shift of certain insurance claims expense into net credit losses during a transition in the Company’s insurance provider. Annualized net credit losses as a percentage of average finance receivables in the first quarter of 2017 were 10.9% (inclusive of 0.5% attributable to the insurance losses noted above), an increase from 9.7% in the prior-year period.

General and administrative expenses for the first quarter of 2017 were $31.5 million, an increase of 5.5%, or $1.6 million, from the prior-year period. General and administrative expenses for both the first quarters of 2017 and 2016 include $0.4 million of loan system conversion costs. Sequentially, general and administrative expenses increased $2.6 million, or 9.1%, from the fourth quarter of 2016 due to higher personnel costs (consistent with seasonally fewer originations that drive lower salary deferral for loan origination costs), as well as increased other expenses.

Net income for the first quarter of 2017 was $7.6 million, an increase from $5.2 million in the prior-year period. The net income increase in the first quarter of 2017 was partially due to a $1.5 million tax benefit from share-based compensation that occurred during the quarter. Diluted earnings per share for the first quarter of 2017 were $0.65, an increase from $0.40 in the prior-year period.

 

3

Exhibit 99.1

 

2017 De Novo Outlook

As of March 31, 2017, the Company’s branch network consisted of 344 locations. Regional Management opened 5 de novo branches in the first quarter of 2017 and, for the full year 2017, maintains its plan to open between 10 and 15 de novo branches.

Liquidity and Capital Resources

As of March 31, 2017, the Company had finance receivables of $695.0 million and outstanding long-term debt of $463.0 million (consisting of $430.8 million of long-term debt on its $585.0 million senior revolving credit facility and $32.2 million of long-term debt on its $75.7 million amortizing loan).

Conference Call Information

Regional Management Corp. will host a conference call and webcast today at 5:00 PM ET to discuss these results.

The dial-in number for the conference call is (855) 590-2959 (toll-free) or (503) 343-6651 (direct), passcode 4626895. Please dial the number 10 minutes prior to the scheduled start time.

*** A supplemental slide presentation will be made available on Regional Management’s website prior to the earnings call at www.RegionalManagement.com. ***

In addition, a live webcast of the conference call will also be available on Regional Management’s website at www.RegionalManagement.com.

A replay will be available following the end of the call through Tuesday, May 9, 2017, by telephone at (855) 859-2056 (toll-free) or (404) 537-3406 (direct), passcode 4626895. A webcast replay of the call will be available at www.RegionalManagement.com for one year following the call.

Forward-Looking Statements

This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Regional Management Corp.’s expectations or beliefs concerning future events. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “outlook,” and similar expressions may be used to identify these forward-looking statements. Such forward-looking statements are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, the following: changes in general economic conditions, including levels of unemployment and bankruptcies; risks associated with Regional Management’s transition to a new loan origination and servicing software system; risks related to opening new branches, including the ability or inability to open new branches as planned; risks inherent in making loans, including repayment risks and value of

 

4

Exhibit 99.1

 

collateral, which risks may increase in light of adverse or recessionary economic conditions; changes in interest rates; the risk that Regional Management’s existing sources of liquidity become insufficient to satisfy its needs or that its access to these sources becomes unexpectedly restricted; changes in federal, state, or local laws, regulations, or regulatory policies and practices, and risks associated with the manner in which laws and regulations are interpreted, implemented, and enforced; the timing and amount of revenues that may be recognized by Regional Management; changes in current revenue and expense trends (including trends affecting delinquencies and credit losses); changes in Regional Management’s markets and general changes in the economy (particularly in the markets served by Regional Management); changes in the competitive environment in which Regional Management operates or in the demand for its products; risks related to acquisitions; changes in operating and administrative expenses; and the departure, transition, or replacement of key personnel. Such factors and others are discussed in greater detail in Regional Management’s filings with the Securities and Exchange Commission. Regional Management will not update the information contained in this press release beyond the publication date, except to the extent required by law, and is not responsible for changes made to this document by wire services or Internet services.

About Regional Management Corp.

Regional Management Corp. (NYSE: RM) is a diversified consumer finance company providing a broad array of loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other traditional lenders. Regional Management began operations in 1987 with four branches in South Carolina and has since expanded its branch network across South Carolina, Texas, North Carolina, Tennessee, Alabama, Oklahoma, New Mexico, Georgia, and Virginia. Each of its loan products is structured on a fixed rate, fixed term basis with fully amortizing equal monthly installment payments and is repayable at any time without penalty. Regional Management’s loans are sourced through its multiple channel platform, including in its branches, through direct mail campaigns, independent and franchise automobile dealerships, online credit application networks, retailers, and its consumer website. For more information, please visit www.RegionalManagement.com.

Contact:

Investor Relations

Garrett Edson, (203) 682-8331

 

5

Exhibit 99.1

 

Regional Management Corp. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

(in thousands, except per share amounts)

 

                 Better (Worse)  
     1Q’17     1Q’16     $     %  

Revenue

         

Interest and fee income

    $ 59,255     $ 51,300     $ 7,955       15.5 % 

Insurance income, net

      3,805       2,939       866       29.5 % 

Other income

      2,760       2,458       302       12.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue

      65,820       56,697       9,123       16.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Expenses

         

Provision for credit losses

      19,134       13,791       (5,343 )      (38.7 )% 

Personnel

      18,168       17,127       (1,041 )      (6.1 )% 

Occupancy

      5,285       4,863       (422 )      (8.7 )% 

Marketing

      1,205       1,515       310       20.5 % 

Other

      6,796       6,300       (496 )      (7.9 )% 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total general and administrative

      31,454       29,805       (1,649 )      (5.5 )% 

Interest expense

      5,213       4,710       (503 )      (10.7 )% 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      10,019       8,391       1,628       19.4 % 

Income taxes

      2,385       3,215       830       25.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 7,634     $ 5,176     $ 2,458       47.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income per common share:

         

Basic

    $ 0.66     $ 0.41     $ 0.25       61.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

    $ 0.65     $ 0.40     $ 0.25       62.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted-average shares outstanding:

         

Basic

      11,494       12,756       1,262       9.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

      11,715       12,949       1,234       9.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Return on average assets (annualized)

      4.3 %      3.4 %     
  

 

 

    

 

 

      

Return on average equity (annualized)

      14.5 %      10.1 %     
  

 

 

    

 

 

      

 

6

Exhibit 99.1

 

Regional Management Corp. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(in thousands, except par value amounts)

 

                 Increase (Decrease)  
     1Q’17     1Q’16     $     %  

Assets

         

Cash

    $ 3,505     $ 7,436     $ (3,931 )      (52.9 )% 

Gross finance receivables

      886,350       761,294       125,056       16.4 % 

Unearned finance charges and insurance premiums

      (191,346 )      (153,931 )      (37,415 )      (24.3 )% 
  

 

 

    

 

 

    

 

 

    

 

 

  

Finance receivables

      695,004       607,363       87,641       14.4 % 

Allowance for credit losses

      (41,000 )      (36,230 )      (4,770 )      (13.2 )% 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net finance receivables

      654,004       571,133       82,871       14.5 % 

Property and equipment

      11,878       9,991       1,887       18.9 % 

Restricted cash

      8,889       10,818       (1,929 )      (17.8 )% 

Intangible assets

      6,981       3,520       3,461       98.3 % 

Deferred tax asset

      725       2,453       (1,728 )      (70.4 )% 

Other assets

      4,450       4,356       94       2.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

    $ 690,432     $ 609,707     $ 80,725       13.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Liabilities and Stockholders’ Equity

         

Liabilities:

         

Long-term debt

    $ 462,994     $ 396,543     $ 66,451       16.8 % 

Unamortized debt issuance costs

      (2,051 )      (2,443 )      392       16.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net long-term debt

      460,943       394,100       66,843       17.0 % 

Accounts payable and accrued expenses

      15,310       13,685       1,625       11.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

      476,253       407,785       68,468       16.8 % 

Commitments and Contingencies

         

Stockholders’ equity:

         

Preferred stock, $0.10 par value, 100,000 shares authorized, no shares issued or outstanding

      —         —         —         —    

Common stock, $0.10 par value, 1,000,000 shares authorized, 13,170 shares issued and 11,624 shares outstanding at March 31, 2017 and 12,939 shares issued and 12,367 shares outstanding at March 31, 2016

      1,317       1,294       23       1.8 % 

Additional paid-in-capital

      91,485       89,565       1,920       2.1 % 

Retained earnings

      146,423       119,934       26,489       22.1 % 

Treasury stock, 1,546 and 572 shares at March 31, 2017 and 2016, respectively

      (25,046 )      (8,871 )      (16,175 )      (182.3 )% 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total stockholders’ equity

      214,179       201,922       12,257       6.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities and stockholders’ equity

    $ 690,432     $ 609,707     $ 80,725       13.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

7

Exhibit 99.1

 

Regional Management Corp. and Subsidiaries

Selected Financial Data

(Unaudited)

(in thousands, except per share amounts)

 

     Averages and Yields  
     1Q’17     4Q’16     1Q’16  
     Average Finance
Receivables		      Average Yield
(Annualized)		     Average Finance
Receivables		      Average Yield
(Annualized)		     Average Finance
Receivables		      Average Yield
(Annualized)		  

Small loans

    $ 349,521        42.3 %    $ 354,276        42.6 %    $ 325,649        41.9 % 

Large loans

      239,033        28.7 %      225,786        29.0 %      152,938        28.2 % 

Automobile loans

      88,150        16.6 %      93,866        17.0 %      111,008        18.2 % 

Retail loans

      32,560        18.7 %      33,013        19.0 %      27,923        19.2 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total interest and fee yield

    $ 709,264        33.4 %    $ 706,941        33.8 %    $ 617,518        33.2 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total revenue yield

    $ 709,264        37.1 %    $ 706,941        36.2 %    $ 617,518        36.7 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

 

     Components of Increase in Interest and Fee Income
1Q’17 Compared to 1Q’16
Increase (Decrease)		  
     Volume      Rate      Net  

Small loans

    $ 2,520      $ 272      $ 2,792  

Large loans

      6,176        211        6,387  

Automobile loans

      (975 )       (431 )       (1,406 ) 

Retail loans

      218        (36 )       182  
  

 

 

     

 

 

     

 

 

  

Total increase in interest and fee income

    $ 7,939      $ 16      $ 7,955  
  

 

 

     

 

 

     

 

 

  

 

     Net Loans Originated (1)  
     1Q’17      4Q’16      QoQ $
Inc (Dec)		     QoQ %
Inc (Dec)		     1Q’16      YoY $
Inc (Dec)		     YoY %
Inc (Dec)		  

Small loans

    $ 115,359      $ 152,868      $ (37,509 )      (24.5 )%    $ 114,377      $ 982       0.9 % 

Large loans

      57,020        67,273        (10,253 )      (15.2 )%      48,569        8,451       17.4 % 

Automobile loans

      8,789        8,099        690       8.5 %      8,485        304       3.6 % 

Retail loans

      6,264        8,043        (1,779 )      (22.1 )%      8,701        (2,437 )      (28.0 )% 
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total net loans originated

    $ 187,432      $ 236,283      $ (48,851 )      (20.7 )%    $ 180,132      $ 7,300       4.1 % 
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

(1) Represents the balance of loan origination and refinancing net of unearned finance charges

 

8

Exhibit 99.1

 

     Other Key Metrics  
     1Q’17     4Q’16     1Q’16  

Net credit losses

    $ 19,384     $ 17,277     $ 15,013  

Percentage of average finance receivables (annualized)

      10.9 %      9.8 %      9.7 % 

Provision for credit losses

    $ 19,134     $ 19,427     $ 13,791  

Percentage of average finance receivables (annualized)

      10.8 %      11.0 %      8.9 % 

Percentage of total revenue

      29.1 %      30.3 %      24.3 % 

General and administrative expenses

    $ 31,454     $ 28,826     $ 29,805  

Percentage of average finance receivables (annualized)

      17.7 %      16.3 %      19.3 % 

Percentage of total revenue

      47.8 %      45.0 %      52.6 % 

Same store results:

       

Finance receivables at period-end

    $ 682,218     $ 697,004     $ 552,313  

Finance receivable growth rate

      12.6 %      11.0 %      7.3 % 

Number of branches in calculation

      329       321       306  

 

     Finance Receivables by Product  
     1Q’17      4Q’16      QoQ $
Inc (Dec)		     QoQ %
Inc (Dec)		     1Q’16      YoY $
Inc (Dec)		     YoY %
Inc (Dec)		  

Small loans

    $ 335,552      $ 358,471      $ (22,919 )      (6.4 )%    $ 310,502      $ 25,050       8.1 % 

Large loans

      242,380        235,349        7,031       3.0 %      162,301        80,079       49.3 % 
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total core loans

      577,932        593,820        (15,888 )      (2.7 )%      472,803        105,129       22.2 % 

Automobile loans

      85,869        90,432        (4,563 )      (5.0 )%      106,297        (20,428 )      (19.2 )% 

Retail loans

      31,203        33,523        (2,320 )      (6.9 )%      28,263        2,940       10.4 % 
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total finance receivables

    $ 695,004      $ 717,775      $ (22,771 )      (3.2 )%    $ 607,363      $ 87,641       14.4 % 
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Number of branches at period end

      344        339        5       1.5 %      339        5       1.5 % 

Average finance receivables per branch

    $ 2,020      $ 2,117      $ (97 )      (4.6 )%    $ 1,792      $ 228       12.7 % 
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

9

Exhibit 99.1

 

     Contractual Delinquency by Aging  
     1Q’17     4Q’16     1Q’16  

Allowance for credit losses

    $ 41,000        5.9 %    $ 41,250        5.7 %    $ 36,230        6.0 % 

Current

      586,085        84.3 %      587,202        81.9 %      505,801        83.3 % 

1 to 29 days past due

      63,978        9.2 %      77,106        10.7 %      63,686        10.5 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Delinquent accounts:

                

30 to 59 days

      13,860        2.1 %      16,727        2.3 %      11,986        1.9 % 

60 to 89 days

      9,889        1.4 %      11,641        1.6 %      7,640        1.3 % 

90 to 119 days

      7,569        1.0 %      10,021        1.4 %      7,099        1.1 % 

120 to 149 days

      6,975        1.0 %      8,205        1.1 %      5,914        1.0 % 

150 to 179 days

      6,648        1.0 %      6,873        1.0 %      5,237        0.9 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total contractual delinquency

    $ 44,941        6.5 %    $ 53,467        7.4 %    $ 37,876        6.2 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total finance receivables

    $ 695,004        100.0 %    $ 717,775        100.0 %    $ 607,363        100.0 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

1 day and over past due

    $ 108,919        15.7 %    $ 130,573        18.1 %    $ 101,562        16.7 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

 

     Contractual Delinquency by Product  
     1Q’17     4Q’16     1Q’16  

Small loans

    $ 26,573        7.9 %    $ 32,955        9.2 %    $ 24,978        8.0 % 

Large loans

      12,142        5.0 %      12,114        5.1 %      5,561        3.4 % 

Automobile loans

      4,513        5.3 %      6,300        7.0 %      6,120        5.8 % 

Retail loans

      1,713        5.5 %      2,098        6.3 %      1,217        4.3 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total contractual delinquency

    $ 44,941        6.5 %    $ 53,467        7.4 %    $ 37,876        6.2 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

 

10

Exhibit 99.1

 

     Quarterly Trend  
     1Q’16      2Q’16      3Q’16      4Q’16      1Q’17      QoQ $
B(W)		     YoY $
B(W)		  

Revenue

                    

Interest and fee income

    $ 51,300      $ 52,589      $ 57,420      $ 59,654      $ 59,255      $ (399 )    $ 7,955  

Insurance income, net

      2,939        2,601        2,346        1,570        3,805        2,235       866  

Other income

      2,458        2,135        2,709        2,797        2,760        (37 )      302  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total revenue

      56,697        57,325        62,475        64,021        65,820        1,799       9,123  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Expenses

                    

Provision for credit losses

      13,791        13,386        16,410        19,427        19,134        293       (5,343 ) 

Personnel

      17,127        16,674        18,180        16,998        18,168        (1,170 )      (1,041 ) 

Occupancy

      4,863        4,770        5,175        5,251        5,285        (34 )      (422 ) 

Marketing

      1,515        2,062        1,786        1,474        1,205        269       310  

Other

      6,300        6,042        5,312        5,103        6,796        (1,693 )      (496 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total general and administrative

      29,805        29,548        30,453        28,826        31,454        (2,628 )      (1,649 ) 

Interest expense

      4,710        4,811        5,116        5,287        5,213        74       (503 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income before income taxes

      8,391        9,580        10,496        10,481        10,019        (462 )      1,628  

Income taxes

      3,215        3,668        4,020        4,014        2,385        1,629       830  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net income

    $ 5,176      $ 5,912      $ 6,476      $ 6,467      $ 7,634      $ 1,167     $ 2,458  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net income per common share:

                    

Basic

    $ 0.41      $ 0.50      $ 0.57      $ 0.57      $ 0.66      $ 0.09     $ 0.25  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Diluted

    $ 0.40      $ 0.49      $ 0.56      $ 0.55      $ 0.65      $ 0.10     $ 0.25  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Weighted-average shares outstanding:

                    

Basic

      12,756        11,756        11,384        11,408        11,494        (86 )      1,262  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Diluted

      12,949        11,974        11,664        11,763        11,715        48       1,234  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net interest margin

    $ 51,987      $ 52,514      $ 57,359      $ 58,734      $ 60,607      $ 1,873     $ 8,620  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net credit margin

    $ 38,196      $ 39,128      $ 40,949      $ 39,307      $ 41,473      $ 2,166     $ 3,277  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
     1Q’16      2Q’16      3Q’16      4Q’16      1Q’17      QoQ $
Inc (Dec)		     YoY $
Inc (Dec)		  

Total assets

    $ 609,707      $ 642,803      $ 691,329      $ 712,224      $ 690,432      $ (21,792 )    $ 80,725  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Finance receivables

    $ 607,363      $ 645,744      $ 696,149      $ 717,775      $ 695,004      $ (22,771 )    $ 87,641  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Allowance for credit losses

    $ 36,230      $ 36,200      $ 39,100      $ 41,250      $ 41,000      $ (250 )    $ 4,770  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Long-term debt

    $ 396,543      $ 441,147      $ 481,766      $ 491,678      $ 462,994      $ (28,684 )    $ 66,451  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
     General & Administrative Expenses Trend  
     1Q’16      2Q’16      3Q’16      4Q’16      1Q’17      QoQ $
B(W)		     YoY $
B(W)		  

Legacy operations expenses

    $ 19,811      $ 18,224      $ 19,596      $ 19,238      $ 20,497      $ (1,259 )    $ (686 ) 

2017 new branch expenses

                  276        (276 )      (276 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total operations expenses

      19,811        18,224        19,596        19,238        20,773        (1,535 )      (962 ) 

Marketing expenses

      1,515        2,062        1,786        1,474        1,205        269       310  

Home office expenses

      8,479        9,262        9,071        8,114        9,476        (1,362 )      (997 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total G&A expenses

    $ 29,805      $ 29,548      $ 30,453      $ 28,826      $ 31,454      $ (2,628 )    $ (1,649 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

11