EX-99.1

EX-99.1 2 d110671dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO

Regional Management Corp. Announces Fourth Quarter 2015 Results

- Net income of $7.4 million; diluted earnings per share of $0.56 -

- Total finance receivables of $628 million, up $27 million sequentially and $82 million compared to prior-year period -

Greenville, South Carolina – January 28, 2016 – Regional Management Corp. (NYSE: RM), a diversified specialty consumer finance company, today announced results for the fourth quarter and full year periods ended December 31, 2015.

Fourth Quarter 2015 Highlights

•

Net income for the fourth quarter of 2015 was $7.4 million, a $0.9 million increase sequentially and an increase of $4.0 million from the prior-year period. Diluted earnings per share were $0.56 based on a diluted share count of 13.1 million. Excluding proceeds from the bulk sale of charged-off loans in the fourth quarter of 2015, non-GAAP net income and diluted earnings per share would have been $6.1 million and $0.47, respectively.

•

Total finance receivables as of December 31, 2015 were $628.4 million, an increase of 4.5% sequentially and 15.1% from the prior year. All core loan categories continue to grow:

Large loan finance receivables as of December 31, 2015 were $146.6 million, an increase of 22.4% sequentially and 217.6% compared to the prior year.

Branch small loan and convenience check finance receivables, collectively, as of December 31, 2015 were $338.2 million, an increase of 3.0% sequentially and 5.8% over the prior year.

•

Total revenue for the fourth quarter of 2015 was $56.7 million, an increase of $1.6 million sequentially and a $2.9 million, or 5.4%, increase from the prior-year period. Revenue growth over the prior-year period was driven by a 15.1% increase in receivables, partially offset by an overall yield decline of 290 basis points. On a sequential basis, yield declined by 50 basis points, stabilizing from earlier quarters.

•

Net charge-offs¹ for the fourth quarter of 2015 were $11.8 million, or 7.7% of average finance receivables. In December, Regional Management completed the bulk sale of approximately $112 million of its existing charged-off loan portfolio, and committed to the sale of the forward flow of accounts charged off between November 2015 and October 2016. Excluding the bulk sale of charged-off loans, net charge-offs for the quarter were $13.7 million, or 9.0% of average finance receivables, decreasing from 13.9% in the prior-year period but increasing from 8.5% sequentially.

•

Total delinquencies as a percentage of total finance receivables as of December 31, 2015 were 20.3%, an improvement sequentially from 22.4% as of September 30, 2015 and from 22.6% as of December 31, 2014, partially due to a shift in portfolio mix.

•

In December, Regional Management entered into a credit agreement with Wells Fargo Bank, N.A., as lender, providing for a $75 million amortizing loan secured by automobile receivables. Regional Management is paying interest of 3.00% per annum on the loan balance, plus amortization of debt issue costs, until the loan balance has been fully repaid.

•

Regional Management opened 9 new branches in the fourth quarter of 2015, including one branch in Virginia, its ninth U.S. state. As of December 31, 2015, Regional Management’s branch network consisted of 331 locations.

“2015 was a year of continuous improvement at Regional in all aspects of our business processes, and as a result, we enter 2016 in a significantly stronger position from where we started in 2015,” said Michael R. Dunn, Chief Executive Officer of Regional Management Corp. “Our core products, led most prominently by our large loans, drove the 15% year-over-year growth in our portfolio. By the end of 2015, we had more than tripled the amount in our large loan portfolio compared to the end of 2014, and it has become a key component of our business, now comprising 23% of our total loan portfolio and growing. Overall, we ended the year with our combined loan portfolio at $628 million, a sizable increase from the prior year and indicative of solid origination performance throughout the year.”

“We are also gratified by the improvements that were made during 2015 in our credit processes and portfolio quality. Charge-off rates showed improvement versus the prior year in the aggregate as well as on a portfolio basis,” continued Mr. Dunn. “Our delinquencies at the end of the fourth quarter were considerably more aligned with the profile of credit quality we expect to see going forward. In 2016, we will continue the focus on our core products and execution, while we also expect it to be a year of additional investment in operations in order to firmly position us for long-term sustainable and profitable growth.”

Fourth Quarter 2015 Results

Finance receivables outstanding at December 31, 2015 were $628.4 million, a 15.1% increase from $546.2 million in the prior year. Finance receivables increased primarily due to an increase in both Regional Management’s small and large loan portfolios and the addition of 31 de novo branches since December 31, 2014.

¹	Net charge-offs are reported on an annualized basis.

For the fourth quarter ended December 31, 2015, Regional Management reported total revenue of $56.7 million, a 5.4% increase from $53.8 million in the prior-year period. Interest and fee income for the fourth quarter of 2015 was $51.3 million, a 4.8% increase from $49.0 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 and partially offset by lower interest and fee yield, primarily in the convenience check and branch small loan portfolios. Insurance income for the fourth quarter of 2015 was $2.8 million, an increase of $0.6 million from the prior-year period.

Provision for credit losses in the fourth quarter of 2015 was $11.4 million versus $16.0 million in the prior-year period. Excluding the one-time bulk sale of charged-off loans, provision for credit losses in the fourth quarter of 2015 was $13.4 million. Net charge-offs were $11.8 million in the fourth quarter of 2015 ($13.7 million excluding the bulk sale of charged-off loans). Net charge-offs as a percentage of average finance receivables for the fourth quarter of 2015 (excluding the bulk sale) were 9.0%, an improvement from 13.9% in the prior-year period.

On a sequential basis, provision for credit losses (excluding the bulk sale) of $13.4 million was $0.7 million lower than the third quarter of 2015, predominantly due to improving credit metrics and a shifting portfolio mix.

General and administrative expenses for the fourth quarter of 2015 were $28.6 million, an increase of 0.5% from $28.4 million in the prior-year period. The increase was driven primarily by $0.8 million of additional branch expenses, partially offset by a $0.4 million decline in marketing costs. Branch expenses include changes in staffing and incentive plans for all branches, as well as the expenses associated with 31 branches added since December 31, 2014.

GAAP net income for the fourth quarter of 2015 was $7.4 million, a 117.9% increase compared to net income of $3.4 million in the prior-year period. Diluted earnings per share for the fourth quarter of 2015 were $0.56, an increase from $0.26 in the prior-year period. Excluding the bulk sale of charged-off loans, non-GAAP net income in the fourth quarter of 2015 would have been $6.1 million and diluted earnings per share would have been $0.47. For a reconciliation of non-GAAP financial measures to the nearest comparable GAAP financial measure, please refer to the reconciliation table accompanying this release.

Full Year 2015 Results

For the full year ended December 31, 2015, Regional Management reported total revenue of $217.3 million, a 6.1% increase from $204.7 million in the prior year. Interest and fee income for the full year ended December 31, 2015 was $195.8 million, a 6.0% increase from $184.8 million in the prior year, primarily due to an increase in the portfolios of both small and large loans compared to the prior year. Insurance income for the full year ended December 31, 2015 was $11.7 million, a 9.2% increase from the prior year.

Provision for credit losses for the full year ended December 31, 2015 was $47.3 million ($49.3 million excluding the bulk sale of charged-off loans) versus $69.1 million in the prior year. Net charge-offs of $50.4 million ($52.4 million excluding the bulk sale) in the full year ended December 31, 2015 exceeded the provision by $3.1 million as Regional Management released a portion of the allowance recorded in 2014 for convenience checks. Net charge-offs as a percentage of average finance receivables for the full year ended December 31, 2015 (excluding the bulk sale) was 9.1%, a decline from 10.7% in the prior year.

General and administrative expenses for the full year ended December 31, 2015 were $115.6 million, an increase of $18.8 million, or 19.4%, from $96.8 million in the prior year, driven by $9.3 million of additional branch expenses, $8.8 million of additional home office expenses and $0.7 million of additional marketing costs. Branch expenses include changes in staffing and incentive plans for all branches, as well as the expenses associated with branches added since December 31, 2013. The increase in home office expenses includes additional personnel, incentive plan changes and legal and consulting fees.

GAAP net income for the full year ended December 31, 2015 was $23.4 million, a 57.9% increase compared to GAAP net income of $14.8 million in the prior year, and diluted earnings per share for the full year ended December 31, 2015 were $1.79 compared to $1.14 in the prior year. Excluding certain non-operating expenses and the bulk sale of charged-off loans, non-GAAP net income for the full year ended December 31, 2015 totaled $23.8 million and non-GAAP diluted earnings per share were $1.82.

2016 De Novo Outlook

As of December 31, 2015, Regional Management’s branch network consisted of 331 locations. Regional Management opened 9 de novo branches in the fourth quarter of 2015 and, for the full year 2016, plans to open between 20 and 25 de novo branches.

Liquidity and Capital Resources

As of December 31, 2015, Regional Management had finance receivables of $628.4 million and outstanding debt of $411.2 million (consisting of $338.3 million of debt on its $538.0 million senior revolving credit facility and $72.9 million of debt on its $75 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 (866) 318-8611 (toll-free) or (617) 399-5130 (direct), passcode 47330233. Please dial the number 10 minutes prior to the scheduled start time. 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 Thursday, February 4, 2016, by telephone at (888) 286-8010 (toll-free) or (617) 801-6888 (direct), passcode 63457927. A webcast replay of the call will be available at http://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: the continuation or worsening of adverse conditions in the global and domestic credit markets and uncertainties regarding, or the impact of, governmental responses to those conditions; changes in interest rates; risks related to acquisitions; 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 collateral, which risks may increase in light of adverse or recessionary economic conditions; recently-enacted or proposed legislation; 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 charge-offs); changes in Regional Management’s markets and general changes in the economy (particularly in the markets served by Regional Management); 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 and is not responsible for updating the information contained in this press release beyond the publication date, or for changes made to this document by wire services or Internet services.

About Regional Management Corp.

Regional Management Corp. (NYSE: RM) is a diversified specialty 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 http://www.RegionalManagement.com.

Contact:

Investor Relations

Garrett Edson, (203) 682-8331

Regional Management Corp. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

(in thousands, except per share amounts)


							Better (Worse)												Better (Worse)
	4Q’15			4Q’14			$			%			YTD’15			YTD’14			$			%
Revenue
Interest and fee income	$	51,320		$	48,964		$	2,356			4.8	%	$	195,794		$	184,797		$	10,997			6.0	%
Insurance income, net		2,838			2,261			577			25.5	%		11,654			10,673			981			9.2	%
Other income		2,527			2,567			(40	)		(1.6	)%		9,858			9,249			609			6.6	%

Total revenue		56,685			53,792			2,893			5.4	%		217,306			204,719			12,587			6.1	%

Expenses
Provision for credit losses		11,449			15,950			4,501			28.2	%		47,348			69,057			21,709			31.4	%
Personnel		17,283			17,099			(184	)		(1.1	)%		69,247			55,383			(13,864	)		(25.0	)%
Occupancy		4,722			4,157			(565	)		(13.6	)%		17,775			15,575			(2,200	)		(14.1	)%
Marketing		1,403			1,842			439			23.8	%		7,017			6,330			(687	)		(10.9	)%
Other		5,142			5,298			156			2.9	%		21,559			19,488			(2,071	)		(10.6	)%

Total general and administrative		28,550			28,396			(154	)		(0.5	)%		115,598			96,776			(18,822	)		(19.4	)%
Interest expense		4,350			3,780			(570	)		(15.1	)%		16,221			14,947			(1,274	)		(8.5	)%

Income before income taxes		12,336			5,666			6,670			117.7	%		38,139			23,939			14,200			59.3	%
Income taxes		4,969			2,285			(2,684	)		(117.5	)%		14,774			9,137			(5,637	)		(61.7	)%

Net income	$	7,367		$	3,381		$	3,986			117.9	%	$	23,365		$	14,802		$	8,563			57.9	%

Net income per common share:
Basic	$	0.57		$	0.27		$	0.30			111.1	%	$	1.82		$	1.17		$	0.65			55.6	%

Diluted	$	0.56		$	0.26		$	0.30			115.4	%	$	1.79		$	1.14		$	0.65			57.0	%

Weighted-average shares outstanding:
Basic		12,891			12,744			147			1.2	%		12,849			12,701			148			1.2	%

Diluted		13,105			12,955			150			1.2	%		13,074			12,951			123			0.9	%

Return on average assets (annualized)		4.9	%		2.6	%								4.2	%		2.9	%

Return on average equity (annualized)		14.6	%		7.7	%								12.2	%		8.7	%

Regional Management Corp. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(in thousands, except par value amounts)


							Increase (Decrease)
	4Q’15			4Q’14			$			%
Assets
Cash	$	7,654		$	4,012		$	3,642			90.8	%
Gross finance receivables		785,042			663,432			121,610			18.3	%
Less unearned finance charges, insurance premiums, and commissions		(156,598	)		(117,240	)		(39,358	)		33.6	%

Finance receivables		628,444			546,192			82,252			15.1	%
Allowance for credit losses		(37,452	)		(40,511	)		3,059			(7.6	)%

Net finance receivables		590,992			505,681			85,311			16.9	%
Restricted cash		10,506			1,901			8,605			452.7	%
Property and equipment, net of accumulated depreciation		10,441			8,905			1,536			17.2	%
Deferred tax asset, net		—			1,870			(1,870	)		(100.0	)%
Goodwill		716			716			—			0.0	%
Intangible assets, net		473			847			(374	)		(44.2	)%
Repossessed assets at net realizable value		307			556			(249	)		(44.8	)%
Other assets		7,979			5,782			2,197			38.0	%

Total assets	$	629,068		$	530,270		$	98,798			18.6	%

Liabilities and Stockholders’ Equity
Liabilities:
Long-term debt	$	411,177		$	341,419		$	69,758			20.4	%
Accounts payable and accrued expenses		12,089			10,528			1,561			14.8	%
Deferred tax liability, net		575			—			575			100.0	%

Total liabilities		423,841			351,947			71,894			20.4	%
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, 12,914 and 12,748 shares issued and outstanding at December 31, 2015 and 2014, respectively		1,291			1,275			16			1.3	%
Additional paid-in-capital		89,178			85,655			3,523			4.1	%
Retained earnings		114,758			91,393			23,365			25.6	%

Total stockholders’ equity		205,227			178,323			26,904			15.1	%

Total liabilities and stockholders’ equity	$	629,068		$	530,270		$	98,798			18.6	%

Regional Management Corp. and Subsidiaries

Selected Financial Data

(Unaudited)

(in thousands, except per share amounts)


	Averages and Yields
	4Q’15					3Q’15					4Q’14
	Average Finance Receivables		Average Yield (Annualized)			Average Finance Receivables		Average Yield (Annualized)			Average Finance Receivables		Average Yield (Annualized)
Branch small loans	$	151,983		43.1	%	$	144,551		43.5	%	$	119,097		48.4	%
Convenience checks		180,395		41.4	%		178,940		42.8	%		192,951		46.8	%
Large loans		133,457		28.0	%		106,155		27.6	%		43,464		27.1	%
Automobile loans		122,049		18.4	%		133,857		18.8	%		159,047		19.5	%
Retail loans		26,453		19.4	%		25,022		19.1	%		26,493		18.7	%

Total interest and fee yield	$	614,337		33.4	%	$	588,525		33.8	%	$	541,052		36.2	%

Total revenue yield	$	614,337		36.9	%	$	588,525		37.4	%	$	541,052		39.8	%


	Components of Increase in Interest and Fee Income 4Q’15 Compared to 4Q’14 Increase (Decrease)
	Volume			Rate			Net
Branch small loans	$	3,670		$	(1,700	)	$	1,970
Convenience checks		(1,410	)		(2,513	)		(3,923	)
Large loans		6,301			102			6,403
Automobile loans		(1,725	)		(416	)		(2,141	)
Retail loans		(2	)		49			47
Change in product mix		(274	)		274			—

Total increase (decrease) in interest and fee income	$	6,560		$	(4,204	)	$	2,356


	Net Loans Originated (1)
	4Q’15		3Q’15		4Q’14		QoQ $ Inc (Dec)			QoQ % Inc (Dec)			YoY $ Inc (Dec)			YoY % Inc (Dec)
Branch small loans	$	81,074	$	63,647	$	80,171	$	17,427			27.4	%	$	903			1.1	%
Convenience checks		83,230		80,675		95,330		2,555			3.2	%		(12,100	)		(12.7	)%
Large loans		52,686		44,911		17,737		7,775			17.3	%		34,949			197.0	%
Automobile loans		7,563		7,665		13,516		(102	)		(1.3	)%		(5,953	)		(44.0	)%
Retail loans		8,978		7,868		7,634		1,110			14.1	%		1,344			17.6	%

Total net loans originated	$	233,531	$	204,766	$	214,388	$	28,765			14.0	%	$	19,143			8.9	%

(1)

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


	Other Key Metrics
	4Q’15			3Q’15			4Q’14
Net charge-offs	$	11,783		$	12,470		$	18,740
Net charge-offs (bulk sale of charged-off loans)		1,964			—			—

Net charge-offs (excluding sale)	$	13,747		$	12,470		$	18,740
Percentage of average finance receivables (annualized)		9.0	%		8.5	%		13.9	%
Provision for credit losses	$	11,449		$	14,085		$	15,950
Provision for credit losses (bulk sale of charged-off loans)		1,964			—			—

Provision for credit losses (excluding sale)	$	13,413		$	14,085		$	15,950
Percentage of average finance receivables (annualized)		8.7	%		9.6	%		11.8	%
Percentage of total revenue		23.7	%		25.6	%		29.7	%
General and administrative expenses	$	28,550		$	26,182		$	28,396
Percentage of average finance receivables (annualized)		18.6	%		17.8	%		21.0	%
Percentage of total revenue		50.4	%		47.5	%		52.8	%
Same store results:
Finance receivables at period-end	$	599,415		$	573,221		$	504,697
Finance receivable growth rate		11.7	%		7.1	%		-6.0	%
Number of branches in calculation		296			293			264


	Finance Receivables by Product
	4Q’15		3Q’15		QoQ $ Inc (Dec)			QoQ % Inc (Dec)			4Q’14		YoY $ Inc (Dec)			YoY % Inc (Dec)
Branch small loans	$	157,755	$	147,664	$	10,091			6.8	%	$	128,217	$	29,538			23.0	%
Convenience checks		180,402		180,543		(141	)		(0.1	)%		191,316		(10,914	)		(5.7	)%
Large loans		146,553		119,731		26,822			22.4	%		46,147		100,406			217.6	%

Total core loans		484,710		447,938		36,772			8.2	%		365,680		119,030			32.6	%
Automobile loans		116,109		128,131		(12,022	)		(9.4	)%		154,382		(38,273	)		(24.8	)%
Retail loans		27,625		25,539		2,086			8.2	%		26,130		1,495			5.7	%

Total finance receivables	$	628,444	$	601,608	$	26,836			4.5	%	$	546,192	$	82,252			15.1	%

Number of branches at period end		331		322		9			2.8	%		300		31			10.3	%
Average finance receivables per branch	$	1,899	$	1,868	$	31			1.7	%	$	1,821	$	78			4.3	%


	4Q’14		3Q’14		QoQ $ Inc (Dec)			QoQ % Inc (Dec)
Total finance receivables	$	546,192	$	543,353	$	2,839			0.5	%


	Contractual Delinquency by Aging
	4Q’15				3Q’15				4Q’14
Allowance for credit losses	$	37,452	6.0	%	$	37,786	6.3	%	$	40,511	7.4	%
Current		500,591	79.7	%		466,847	77.6	%		422,342	77.4	%
1 to 29 days past due		82,589	13.1	%		90,626	15.1	%		82,714	15.1	%

Delinquent accounts:
30 to 59 days		15,654	2.5	%		17,094	2.8	%		15,951	2.9	%
60 to 89 days		9,858	1.6	%		9,952	1.7	%		9,624	1.8	%
90 to 119 days		7,696	1.1	%		6,874	1.1	%		6,899	1.2	%
120 to 149 days		6,678	1.1	%		5,766	1.0	%		4,988	0.9	%
150 to 179 days		5,378	0.9	%		4,449	0.7	%		3,674	0.7	%

Total contractual delinquency	$	45,264	7.2	%	$	44,135	7.3	%	$	41,136	7.5	%

Total finance receivables	$	628,444	100.0	%	$	601,608	100.0	%	$	546,192	100.0	%

1 day and over past due	$	127,853	20.3	%	$	134,761	22.4	%	$	123,850	22.6	%


	Contractual Delinquency by Product
	4Q’15				3Q’15				4Q’14
Branch small loans	$	14,765	9.4	%	$	14,166	9.6	%	$	10,247	8.0	%
Convenience checks		15,420	8.5	%		15,605	8.6	%		17,165	9.0	%
Large loans		4,945	3.4	%		3,829	3.2	%		2,106	4.6	%
Automobile loans		8,713	7.5	%		9,327	7.3	%		10,302	6.7	%
Retail loans		1,421	5.1	%		1,208	4.7	%		1,316	5.0	%

Total contractual delinquency	$	45,264	7.2	%	$	44,135	7.3	%	$	41,136	7.5	%


	Quarterly Trend
	4Q’14		1Q’15		2Q’15		3Q’15		4Q’15		QoQ $ B(W)			YoY $ B(W)
Revenue
Interest and fee income	$	48,964	$	47,065	$	47,668	$	49,741	$	51,320	$	1,579		$	2,356
Insurance income, net		2,261		2,929		3,120		2,767		2,838		71			577
Other income		2,567		2,530		2,213		2,588		2,527		(61	)		(40	)

Total revenue		53,792		52,524		53,001		55,096		56,685		1,589			2,893

Expenses
Provision for credit losses		15,950		9,712		12,102		14,085		11,449		2,636			4,501
Personnel		17,099		19,760		16,211		15,993		17,283		(1,290	)		(184	)
Occupancy		4,157		4,165		4,298		4,590		4,722		(132	)		(565	)
Marketing		1,842		2,471		2,009		1,134		1,403		(269	)		439
Other		5,298		6,227		5,725		4,465		5,142		(677	)		156

Total general and administrative		28,396		32,623		28,243		26,182		28,550		(2,368	)		(154	)
Interest expense		3,780		3,604		3,932		4,335		4,350		(15	)		(570	)

Income before income taxes		5,666		6,585		8,724		10,494		12,336		1,842			6,670
Income taxes		2,285		2,502		3,316		3,987		4,969		(982	)		(2,684	)

Net income	$	3,381	$	4,083	$	5,408	$	6,507	$	7,367	$	860		$	3,986

Net income per common share:
Basic	$	0.27	$	0.32	$	0.42	$	0.51	$	0.57	$	0.06		$	0.30

Diluted	$	0.26	$	0.31	$	0.41	$	0.50	$	0.56	$	0.06		$	0.30

Weighted-average shares outstanding:
Basic		12,744		12,838		12,845		12,881		12,891		10			147

Diluted		12,955		13,061		13,078		13,111		13,105		(6	)		150


	4Q’14		1Q’15		2Q’15		3Q’15		4Q’15		QoQ $ Inc (Dec)			YoY $ Inc (Dec)
Total assets		530,270		507,742		560,981		588,966		629,068		40,102			98,798

Finance receivables		546,192		525,907		572,525		601,608		628,444		26,836			82,252

Allowance for credit losses		40,511		36,950		36,171		37,786		37,452		(334	)		(3,059	)

Long-term debt		341,419		312,538		359,491		379,617		411,177		31,560			69,758


	Headcount Trend
	4Q’14		1Q’15		2Q’15		3Q’15		4Q’15		QoQ Inc (Dec)		YoY Inc (Dec)
Legacy branch headcount		1,335		1,273		1,205		1,208		1,208		—		(127	)
2015 new branches				15		40		48		72		24		72

Total branch headcount		1,335		1,288		1,245		1,256		1,280		24		(55	)
Home office headcount		105		125		120		129		133		4		28

Total headcount		1,440		1,413		1,365		1,385		1,413		28		(27	)

Number of branches		300		306		316		322		331		9		31


	General & Administrative Expenses Trend
	4Q’14		1Q’15		2Q’15		3Q’15		4Q’15		QoQ $ B(W)			YoY $ B(W)
Legacy branch G&A expenses	$	18,020	$	19,284	$	16,596	$	17,946	$	17,361	$	585		$	659
2015 new branches				86		498		930		1,501		(571	)		(1,501	)

Total branch G&A expenses		18,020		19,370		17,094		18,876		18,862		14			(842	)
Marketing		1,842		2,471		2,009		1,134		1,403		(269	)		439
Home office G&A expenses		8,534		10,782		9,140		6,172		8,285		(2,113	)		249

Total G&A expenses	$	28,396	$	32,623	$	28,243	$	26,182	$	28,550	$	(2,368	)	$	(154	)


	Averages and Yields
	YTD’15					YTD’14
	Average Finance Receivables		Average Yield			Average Finance Receivables		Average Yield
Branch small loans	$	138,253		44.3	%	$	110,531		48.0	%
Convenience checks		178,692		43.6	%		178,181		45.8	%
Large loans		93,243		27.6	%		42,887		26.9	%
Automobile loans		137,249		19.0	%		169,607		19.7	%
Retail loans		25,392		18.8	%		28,295		18.4	%

Total interest and fee yield	$	572,829		34.2	%	$	529,501		34.9	%

Total revenue yield	$	572,829		37.9	%	$	529,501		38.7	%


	Components of Increase in Interest and Fee Income YTD’15 Compared to YTD’14 Increase (Decrease)
	Volume			Rate			Net
Branch small loans	$	12,529		$	(4,289	)	$	8,240
Convenience checks		233			(3,981	)		(3,748	)
Large loans		13,884			322			14,206
Automobile loans		(6,180	)		(1,106	)		(7,286	)
Retail loans		(543	)		128			(415	)
Change in product mix		(4,974	)		4,974			—

Total increase (decrease) in interest and fee income	$	14,949		$	(3,952	)	$	10,997


	Net Loans Originated (1)
	YTD’15		YTD’14		YTD $ Inc (Dec)			YTD % Inc (Dec)
Branch small loans	$	276,908	$	240,465	$	36,443			15.2	%
Convenience checks		315,303		334,115		(18,812	)		(5.6	)%
Large loans		173,560		50,731		122,829			242.1	%
Automobile loans		41,621		64,842		(23,221	)		(35.8	)%
Retail loans		31,710		29,984		1,726			5.8	%

Total net loans originated	$	839,102	$	720,137	$	118,965			16.5	%

(1)

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


	Other Key Metrics
	YTD’15			YTD’14
Net charge-offs	$	50,407		$	58,635
Net charge-offs (bulk sale of charged-off loans)		1,964			—
Net charge-offs (180+ policy change)		—			(2,106	)

Net charge-offs (excluding policy change and sale)	$	52,371		$	56,529
Percentage of average finance receivables		9.1	%		10.7	%
Provision for credit losses	$	47,348		$	69,057
Provision for credit losses (bulk sale of charged-off loans)		1,964			—

Provision for credit losses (excluding sale)	$	49,312		$	69,057
Percentage of average finance receivables		8.6	%		13.0	%
Percentage of total revenue		22.7	%		33.7	%
General and administrative expenses	$	115,598		$	96,776
Percentage of average finance receivables		20.2	%		18.3	%
Percentage of total revenue		53.2	%		47.3	%

Because it adjusts for certain non-operating and non-cash items, the Company believes that non-GAAP measures are useful to investors as supplemental financial measures that, when viewed with its GAAP financial information, provide information regarding trends in the Company’s results of operations and credit metrics, which is intended to help investors meaningfully evaluate and compare the Company’s results of operations and credit metrics between periods.


	Non-GAAP Reconciliation
	Q4 ‘15		Adjustments			Non-GAAP
Provision for credit losses	$	11,449	$	1,964	⁽¹⁾	$	13,413
Income taxes	$	4,969	$	(746	)⁽⁷⁾	$	4,223
Net income	$	7,367	$	(1,218	)	$	6,149
Diluted net income per common share	$	0.56	$	(0.09	)	$	0.47


	Non-GAAP Reconciliation
	YTD’15		Adjustments			Non-GAAP
General and administrative expenses	$	115,598	$	(2,676	)^(2)(3)(4)	$	112,922
Provision for credit losses	$	47,348	$	1,964	⁽¹⁾	$	49,312
Income taxes	$	14,774	$	271	⁽⁷⁾	$	15,045
Net income	$	23,365	$	441		$	23,806
Diluted net income per common share	$	1.79	$	0.03		$	1.82

	Non-GAAP Reconciliation
	YTD’14		Adjustments			Non-GAAP
General and administrative expenses	$	96,776	$	(1,538	)^(3)(5)(6)	$	95,238
Income taxes	$	9,137	$	577	⁽⁷⁾	$	9,714
Net income	$	14,802	$	961		$	15,763
Diluted net income per common share	$	1.14	$	0.08		$	1.22

(1)

Benefit related to bulk sale of charged-off loans of $1,964

(2)

Exclude executive retirement agreement costs of $533

(3)

Exclude loan system conversion costs of $613 and $1,772 for YTD’15 and YTD’14

(4)

Exclude CEO equity award costs of $1,530

(5)

Benefit related to vacation policy change of $1,388

(6)

Exclude CEO separation costs of $1,154

(7)

Tax effect of the adjustments