EX-99.1 2 d782001dex991.htm EX-99.1

Exhibit 99.1

Regional Management Corp. Announces Second Quarter 2019 Results

- Net income of $8.4 million and diluted earnings per share of $0.70 -

- 17th consecutive quarter of year-over-year double-digit total finance receivables growth -

- 12th consecutive quarter of year-over-year double-digit revenue growth -

Greenville, South Carolina – July 31, 2019 – Regional Management Corp. (NYSE: RM) (the “Company”), a diversified consumer finance company, today announced results for the second quarter ended June 30, 2019.

Second Quarter 2019 Highlights

| • |  | Net income for the second quarter of 2019 was $8.4 million, a 1.3% reduction from the prior-year period. Diluted earnings per share for the second quarter of 2019 was $0.70, comparable with the prior-year period.

| • |  | Total finance receivables as of June 30, 2019 were $973.4 million, an increase of 14.9%, or $126.2 million, from the prior-year period.

| • |  | 17th consecutive quarter of year-over-year double-digit finance receivables growth.

| • |  | Total core small and large loan finance receivables increased $153.2 million, or 19.7%, compared to the prior-year period.

| • |  | Large loan finance receivables of $498.8 million increased $106.7 million, or 27.2%, from the prior-year period and represented 51.2% of the total loan portfolio. Small loan finance receivables as of June 30, 2019 were $431.2 million, an increase of 12.1% over the prior-year period.

| • |  | Total revenue for the second quarter of 2019 was $84.3 million, an $11.9 million, or 16.4%, increase from the prior-year period.

| • |  | 12th consecutive quarter of year-over-year double-digit revenue growth.

| • |  | Interest and fee income increased 13.7%, driven by a 14.9% increase in finance receivables compared to the prior-year period.

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| • |  | Insurance income, net increased $2.2 million, driven by an increase in premium revenue and a decrease in non-file insurance claims expense (due to the previously disclosed change in business practice to lower the utilization of non-file insurance).

| • |  | Provision for credit losses for the second quarter of 2019 was $25.7 million, an increase of $5.5 million, or 27.3%, from the prior-year period. The increase was primarily due to $5.4 million of higher net credit losses, including $1.4 million related to the change in non-file insurance business practice. This change had no impact on net income.

| • |  | Annualized net credit losses as a percentage of average finance receivables were 10.7%, a 120 basis point increase from 9.5% in the prior-year period. Approximately 60 basis points of the increase stemmed from higher late-stage delinquencies at March 31, 2019 compared to March 31, 2018, and the other 60 basis points of the increase was due to incremental non-file insurance claims shifting from insurance income, net to credit losses as compared to the prior-year period. The second quarters of 2019 and 2018 included 60 and 50 basis points of hurricane-related credit losses, respectively.

| • |  | 30+ day contractual delinquencies as of June 30, 2019 were 6.4%, compared to 6.3% as of June 30, 2018.

| • |  | During the second quarter of 2019, the Company repurchased 285,204 shares of its common stock at a weighted-average price of $25.02 per share under the Company’s $25.0 million share repurchase program. As of July 30, 2019, the Company had repurchased 489,428 shares of its common stock under the program at a weighted-average price of $25.54 per share, and there remained $12.5 million available for repurchases under the program.

“We were pleased to complete another strong quarter of performance, including consistent, year-over-year double-digit revenue growth and record sequential finance receivable growth of $61 million,” said Peter R. Knitzer, President and Chief Executive Officer of Regional Management. “We continue to execute very well on our hybrid growth strategy of increasing receivables in existing branches while achieving strong growth from our de novo branches. We also made progress toward becoming a true omni-channel provider for our customers, having launched our new customer-facing website this week.”

“Additionally, our custom credit scorecards are performing very well and, as of June 30th, over 50% of our loan portfolio has been underwritten by these advanced capabilities. We expect to reap the benefits of these advanced tools on our credit performance by the end of 2019 and throughout 2020 and beyond,” added Mr. Knitzer. “We also kept our overall expenses as a percentage of average receivables consistent from the prior year, as we remain focused on controlling expenses. Overall, given our strong second quarter performance, we continue to expect to return to year-over-year double-digit net income growth in the second half of 2019.”

Second Quarter 2019 Results

Finance receivables outstanding at June 30, 2019 were $973.4 million, a 14.9% increase from $847.2 million in the prior-year period. The finance receivables increase was driven by double-digit growth in both the core small and large loan portfolios.

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For the second quarter ended June 30, 2019, the Company reported total revenue of $84.3 million, a 16.4% increase from $72.4 million in the prior-year period. Interest and fee income for the second quarter of 2019 was $76.0 million, a 13.7% increase from $66.8 million in the prior-year period, related to continued consistent growth in the small and large loan portfolios.

The provision for credit losses in the second quarter of 2019 was $25.7 million, a $5.5 million, or 27.3%, increase compared to $20.2 million in the prior-year period. The increase was primarily due to $5.4 million of higher net credit losses, including $1.4 million related to the change in business practice to lower the utilization of non-file insurance.

Net credit losses were $24.9 million in the second quarter of 2019, an increase of $5.4 million over the prior-year period. Annualized net credit losses as a percentage of average finance receivables in the second quarter of 2019 were 10.7%, a 120 basis point increase from 9.5% in the prior-year period. Approximately 60 basis points of the increase stemmed from higher late-stage delinquencies at March 31, 2019 compared to March 31, 2018, and the other 60 basis points of the increase was due to incremental non-file insurance claims shifting from insurance income, net to credit losses as compared to the prior-year period. The second quarters of 2019 and 2018 also included 60 and 50 basis points of hurricane-related credit losses, respectively.

General and administrative expenses for the second quarter of 2019 were $37.7 million, an increase of $4.5 million, or 13.6%, from the prior-year period. Annualized general and administrative expenses as a percentage of average finance receivables were 16.2%, comparable with the prior-year period. General and administrative expenses for the second quarter of 2019 included $1.3 million of incremental costs related to 16 net new branches that opened since the prior-year period. The second quarter of 2019 also included $2.3 million of incremental costs for our existing branches to support ongoing loan portfolio growth.

Interest expense was $9.8 million in the second quarter of 2019, compared to $7.9 million in the prior-year period. The increase in interest expense was due to higher cost of funding due to federal funds rate increases and larger long-term debt amounts outstanding from the ongoing growth in finance receivables. In addition, the Company had larger unused lines of credit and incremental debt issuance costs associated with the 2018 asset-backed securitization transactions.

Net income for the second quarter of 2019 was $8.4 million, a slight decrease from $8.5 million in the prior-year period. Diluted earnings per share for the second quarter of 2019 was $0.70, comparable with the prior-year period.

2019 De Novo Outlook

As of June 30, 2019, the Company’s branch network consisted of 356 locations. The Company opened 22 de novo branches since the end of the second quarter of 2018 and expects to open an additional 15 branches by the end of the year.

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Liquidity and Capital Resources

As of June 30, 2019, the Company had finance receivables of $973.4 million and outstanding long-term debt of $689.3 million, consisting of:

| • |  | $345.6 million on its $638.0 million senior revolving credit facility,

| • |  | $12.3 million on its amortizing loan,

| • |  | $50.9 million on its $125.0 million revolving warehouse credit facility, and

| • |  | $280.6 million through its asset-backed securitizations.

The Company had a funded debt-to-equity ratio of 2.4 to 1.0 and a shareholder equity ratio of 28.4% as of June 30, 2019.

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 (800) 319-4610 (toll-free) or (631) 891-4304 (direct). 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 be available on Regional Management’s website at www.RegionalManagement.com.

A replay will be available following the end of the call through Wednesday, August 7, 2019, by telephone at (844) 512-2921 (toll-free) or (412) 317-6671 (international), passcode 10007210. 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 credit risk, repayment risk, and value of collateral, which risks may

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increase in light of adverse or recessionary economic conditions; risks associated with the implementation of new underwriting models and processes, including as to the effectiveness of new custom scorecards; risks relating to Regional Management’s asset-backed securitization transactions; 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 impact of changes in tax laws, guidance, and interpretations, including related to certain provisions of the Tax Cuts and Jobs Act; 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 a decrease in the demand for its products; the impact of a prolonged shutdown of the federal government; 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 that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name “Regional Finance” in 356 branch locations across 11 states in the Southeastern, Southwestern, Mid-Atlantic, and Midwestern United States. Most of its loan products are secured, and each is structured on a fixed rate, fixed term basis with fully amortizing equal monthly installment payments, repayable at any time without penalty. Regional Management sources loans through its multiple channel platform, which includes branches, centrally-managed direct mail campaigns, digital partners, retailers, and its consumer website. For more information, please visit www.RegionalManagement.com.

Contact:

Investor Relations

Garrett Edson, (203) 682-8331

5

Regional Management Corp. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

(in thousands, except per share amounts)

|  |  |  |  |  |  |  | Better (Worse) |  |  |  |  |  |  |  |  | Better (Worse) |
|  | 2Q 19 |  |  | 2Q 18 |  |  | $ |  |  | % |  |  | YTD 19 |  |  | YTD 18 |  |  | $ |  |  | % |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest and fee income |  | $ | 75,974 |  |  | $ | 66,829 |  |  | $ | 9,145 |  |  |  | 13.7 | % |  | $ | 150,296 |  |  | $ | 132,980 |  |  | $ | 17,316 |  |  |  | 13.0 | %
Insurance income, net |  |  | 5,066 |  |  |  | 2,882 |  |  |  | 2,184 |  |  |  | 75.8 | % |  |  | 9,179 |  |  |  | 6,271 |  |  |  | 2,908 |  |  |  | 46.4 | %
Other income |  |  | 3,234 |  |  |  | 2,705 |  |  |  | 529 |  |  |  | 19.6 | % |  |  | 6,547 |  |  |  | 5,790 |  |  |  | 757 |  |  |  | 13.1 | %
Total revenue |  |  | 84,274 |  |  |  | 72,416 |  |  |  | 11,858 |  |  |  | 16.4 | % |  |  | 166,022 |  |  |  | 145,041 |  |  |  | 20,981 |  |  |  | 14.5 | %
Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provision for credit losses |  |  | 25,714 |  |  |  | 20,203 |  |  |  | (5,511 | ) |  |  | (27.3 | )% |  |  | 49,057 |  |  |  | 39,718 |  |  |  | (9,339 | ) |  |  | (23.5 | )%
Personnel |  |  | 22,511 |  |  |  | 19,390 |  |  |  | (3,121 | ) |  |  | (16.1 | )% |  |  | 44,904 |  |  |  | 40,618 |  |  |  | (4,286 | ) |  |  | (10.6 | )%
Occupancy |  |  | 6,210 |  |  |  | 5,478 |  |  |  | (732 | ) |  |  | (13.4 | )% |  |  | 12,375 |  |  |  | 11,096 |  |  |  | (1,279 | ) |  |  | (11.5 | )%
Marketing |  |  | 2,261 |  |  |  | 2,258 |  |  |  | (3 | ) |  |  | (0.1 | )% |  |  | 3,912 |  |  |  | 3,711 |  |  |  | (201 | ) |  |  | (5.4 | )%
Other |  |  | 6,761 |  |  |  | 6,089 |  |  |  | (672 | ) |  |  | (11.0 | )% |  |  | 14,735 |  |  |  | 12,382 |  |  |  | (2,353 | ) |  |  | (19.0 | )%
Total general and administrative |  |  | 37,743 |  |  |  | 33,215 |  |  |  | (4,528 | ) |  |  | (13.6 | )% |  |  | 75,926 |  |  |  | 67,807 |  |  |  | (8,119 | ) |  |  | (12.0 | )%
Interest expense |  |  | 9,771 |  |  |  | 7,915 |  |  |  | (1,856 | ) |  |  | (23.4 | )% |  |  | 19,492 |  |  |  | 15,092 |  |  |  | (4,400 | ) |  |  | (29.2 | )%
Income before income taxes |  |  | 11,046 |  |  |  | 11,083 |  |  |  | (37 | ) |  |  | (0.3 | )% |  |  | 21,547 |  |  |  | 22,424 |  |  |  | (877 | ) |  |  | (3.9 | )%
Income taxes |  |  | 2,677 |  |  |  | 2,601 |  |  |  | (76 | ) |  |  | (2.9 | )% |  |  | 5,070 |  |  |  | 5,298 |  |  |  | 228 |  |  |  | 4.3 | %
Net income |  | $ | 8,369 |  |  | $ | 8,482 |  |  | $ | (113 | ) |  |  | (1.3 | )% |  | $ | 16,477 |  |  | $ | 17,126 |  |  | $ | (649 | ) |  |  | (3.8 | )%
Net income per common share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.71 |  |  | $ | 0.73 |  |  | $ | (0.02 | ) |  |  | (2.7 | )% |  | $ | 1.41 |  |  | $ | 1.47 |  |  | $ | (0.06 | ) |  |  | (4.1 | )%
Diluted |  | $ | 0.70 |  |  | $ | 0.70 |  |  | $ | — |  |  |  | 0.0 | % |  | $ | 1.37 |  |  | $ | 1.42 |  |  | $ | (0.05 | ) |  |  | (3.5 | )%
Weighted-average shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 11,706 |  |  |  | 11,658 |  |  |  | (48 | ) |  |  | (0.4 | )% |  |  | 11,709 |  |  |  | 11,638 |  |  |  | (71 | ) |  |  | (0.6 | )%
Diluted |  |  | 12,022 |  |  |  | 12,138 |  |  |  | 116 |  |  |  | 1.0 | % |  |  | 12,049 |  |  |  | 12,084 |  |  |  | 35 |  |  |  | 0.3 | %
Return on average assets (annualized) |  |  | 3.4 | % |  |  | 4.0 | % |  |  |  |  |  |  |  |  |  |  | 3.4 | % |  |  | 4.1 | % |  |  |  |  |  |  |  |
Return on average equity (annualized) |  |  | 11.5 | % |  |  | 13.4 | % |  |  |  |  |  |  |  |  |  |  | 11.5 | % |  |  | 13.8 | % |  |  |  |  |  |  |  |

6

Regional Management Corp. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(in thousands, except par value amounts)

|  |  |  |  |  |  |  | Increase (Decrease) |
|  | 2Q 19 |  |  | 2Q 18 |  |  | $ |  |  | % |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  | $ | 694 |  |  | $ | 2,799 |  |  | $ | (2,105 | ) |  |  | (75.2 | )%
Gross finance receivables |  |  | 1,300,043 |  |  |  | 1,121,711 |  |  |  | 178,332 |  |  |  | 15.9 | %
Unearned finance charges and insurance premiums |  |  | (326,609 | ) |  |  | (274,473 | ) |  |  | (52,136 | ) |  |  | (19.0 | )%
Finance receivables |  |  | 973,434 |  |  |  | 847,238 |  |  |  | 126,196 |  |  |  | 14.9 | %
Allowance for credit losses |  |  | (57,200 | ) |  |  | (48,450 | ) |  |  | (8,750 | ) |  |  | (18.1 | )%
Net finance receivables |  |  | 916,234 |  |  |  | 798,788 |  |  |  | 117,446 |  |  |  | 14.7 | %
Restricted cash |  |  | 41,803 |  |  |  | 26,356 |  |  |  | 15,447 |  |  |  | 58.6 | %
Lease assets |  |  | 25,575 |  |  |  | — |  |  |  | 25,575 |  |  |  | 100.0 | %
Property and equipment |  |  | 14,132 |  |  |  | 12,072 |  |  |  | 2,060 |  |  |  | 17.1 | %
Intangible assets |  |  | 9,953 |  |  |  | 10,785 |  |  |  | (832 | ) |  |  | (7.7 | )%
Deferred tax asset |  |  | 437 |  |  |  | — |  |  |  | 437 |  |  |  | 100.0 | %
Other assets |  |  | 10,488 |  |  |  | 17,420 |  |  |  | (6,932 | ) |  |  | (39.8 | )%
Total assets |  | $ | 1,019,316 |  |  | $ | 868,220 |  |  | $ | 151,096 |  |  |  | 17.4 | %
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-term debt |  | $ | 689,310 |  |  | $ | 595,765 |  |  | $ | 93,545 |  |  |  | 15.7 | %
Unamortized debt issuance costs |  |  | (7,357 | ) |  |  | (7,437 | ) |  |  | 80 |  |  |  | 1.1 | %
Net long-term debt |  |  | 681,953 |  |  |  | 588,328 |  |  |  | 93,625 |  |  |  | 15.9 | %
Lease liabilities |  |  | 27,454 |  |  |  | — |  |  |  | 27,454 |  |  |  | 100.0 | %
Accounts payable and accrued expenses |  |  | 19,690 |  |  |  | 17,526 |  |  |  | 2,164 |  |  |  | 12.3 | %
Deferred tax liability |  |  | — |  |  |  | 3,832 |  |  |  | (3,832 | ) |  |  | (100.0 | )%
Total liabilities |  |  | 729,097 |  |  |  | 609,686 |  |  |  | 119,411 |  |  |  | 19.6 | %
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, 13,494 shares issued and 11,663 shares outstanding at June 30, 2019 and 13,334 shares issued and 11,788 shares outstanding at June 30, 2018) |  |  | 1,349 |  |  |  | 1,333 |  |  |  | 16 |  |  |  | 1.2 | %
Additional paid-in-capital |  |  | 100,486 |  |  |  | 96,369 |  |  |  | 4,117 |  |  |  | 4.3 | %
Retained earnings |  |  | 220,574 |  |  |  | 185,878 |  |  |  | 34,696 |  |  |  | 18.7 | %
Treasury stock (1,831 shares at June 30, 2019 and 1,546 shares at June 30, 2018) |  |  | (32,190 | ) |  |  | (25,046 | ) |  |  | (7,144 | ) |  |  | (28.5 | )%
Total stockholders’ equity |  |  | 290,219 |  |  |  | 258,534 |  |  |  | 31,685 |  |  |  | 12.3 | %
Total liabilities and stockholders’ equity |  | $ | 1,019,316 |  |  | $ | 868,220 |  |  | $ | 151,096 |  |  |  | 17.4 | %

7

Regional Management Corp. and Subsidiaries

Selected Financial Data

(Unaudited)

(in thousands, except per share amounts)

|  | Finance Receivables by Product |
|  | 2Q 19 |  |  | 1Q 19 |  |  | QoQ $ Inc (Dec) |  |  | QoQ % Inc (Dec) |  |  | 2Q 18 |  |  | YoY $ Inc (Dec) |  |  | YoY % Inc (Dec) |
Small loans |  | $ | 431,214 |  |  | $ | 421,712 |  |  | $ | 9,502 |  |  |  | 2.3 | % |  | $ | 384,690 |  |  | $ | 46,524 |  |  |  | 12.1 | %
Large loans |  |  | 498,757 |  |  |  | 440,707 |  |  |  | 58,050 |  |  |  | 13.2 | % |  |  | 392,101 |  |  |  | 106,656 |  |  |  | 27.2 | %
Total core loans |  |  | 929,971 |  |  |  | 862,419 |  |  |  | 67,552 |  |  |  | 7.8 | % |  |  | 776,791 |  |  |  | 153,180 |  |  |  | 19.7 | %
Automobile loans |  |  | 15,686 |  |  |  | 20,511 |  |  |  | (4,825 | ) |  |  | (23.5 | )% |  |  | 39,414 |  |  |  | (23,728 | ) |  |  | (60.2 | )%
Retail loans |  |  | 27,777 |  |  |  | 29,320 |  |  |  | (1,543 | ) |  |  | (5.3 | )% |  |  | 31,033 |  |  |  | (3,256 | ) |  |  | (10.5 | )%
Total finance receivables |  | $ | 973,434 |  |  | $ | 912,250 |  |  | $ | 61,184 |  |  |  | 6.7 | % |  | $ | 847,238 |  |  | $ | 126,196 |  |  |  | 14.9 | %
Number of branches at period end |  |  | 356 |  |  |  | 360 |  |  |  | (4 | ) |  |  | (1.1 | )% |  |  | 340 |  |  |  | 16 |  |  |  | 4.7 | %
Average finance receivables per branch |  | $ | 2,734 |  |  | $ | 2,534 |  |  | $ | 200 |  |  |  | 7.9 | % |  | $ | 2,492 |  |  | $ | 242 |  |  |  | 9.7 | %

|  | Averages and Yields |
|  | 2Q 19 |  |  | 1Q 19 |  |  | 2Q 18 |
|  | Average Finance Receivables |  |  | Average Yield (Annualized) |  |  | Average Finance Receivables |  |  | Average Yield (Annualized) |  |  | Average Finance Receivables |  |  | Average Yield (Annualized) |
Small loans |  | $ | 419,349 |  |  |  | 38.6 | % |  | $ | 434,195 |  |  |  | 38.2 | % |  | $ | 366,647 |  |  |  | 40.1 | %
Large loans |  |  | 468,305 |  |  |  | 28.6 | % |  |  | 437,475 |  |  |  | 28.0 | % |  |  | 375,836 |  |  |  | 28.6 | %
Automobile loans |  |  | 17,933 |  |  |  | 14.6 | % |  |  | 23,226 |  |  |  | 14.8 | % |  |  | 43,980 |  |  |  | 16.0 | %
Retail loans |  |  | 28,786 |  |  |  | 18.8 | % |  |  | 30,052 |  |  |  | 18.6 | % |  |  | 31,530 |  |  |  | 18.8 | %
Total interest and fee yield |  | $ | 934,373 |  |  |  | 32.5 | % |  | $ | 924,948 |  |  |  | 32.1 | % |  | $ | 817,993 |  |  |  | 32.7 | %
Total revenue yield |  | $ | 934,373 |  |  |  | 36.1 | % |  | $ | 924,948 |  |  |  | 35.4 | % |  | $ | 817,993 |  |  |  | 35.4 | %

|  | Components of Increase in Interest and Fee Income 2Q 19 Compared to 2Q 18 Increase (Decrease) |
|  | Volume |  |  | Rate |  |  | Volume & Rate |  |  | Net |
Small loans |  | $ | 5,279 |  |  | $ | (1,363 | ) |  | $ | (196 | ) |  | $ | 3,720 |
Large loans |  |  | 6,609 |  |  |  | 38 |  |  |  | 9 |  |  |  | 6,656 |
Automobile loans |  |  | (1,042 | ) |  |  | (153 | ) |  |  | 91 |  |  |  | (1,104 | )
Retail loans |  |  | (129 | ) |  |  | 2 |  |  |  | — |  |  |  | (127 | )
Product mix |  |  | (1,209 | ) |  |  | 1,158 |  |  |  | 51 |  |  |  | — |
Total increase in interest and fee income |  | $ | 9,508 |  |  | $ | (318 | ) |  | $ | (45 | ) |  | $ | 9,145 |

8

|  | Net Loans Originated (1) (2) |
|  | 2Q 19 |  |  | 1Q 19 |  |  | QoQ $ Inc (Dec) |  |  | QoQ % Inc (Dec) |  |  | 2Q 18 |  |  | YoY $ Inc (Dec) |  |  | YoY % Inc (Dec) |
Small loans |  | $ | 174,440 |  |  | $ | 129,245 |  |  | $ | 45,195 |  |  |  | 35.0 | % |  | $ | 165,023 |  |  | $ | 9,417 |  |  |  | 5.7 | %
Large loans |  |  | 169,373 |  |  |  | 84,068 |  |  |  | 85,305 |  |  |  | 101.5 | % |  |  | 109,186 |  |  |  | 60,187 |  |  |  | 55.1 | %
Retail loans |  |  | 5,179 |  |  |  | 6,197 |  |  |  | (1,018 | ) |  |  | (16.4 | )% |  |  | 6,713 |  |  |  | (1,534 | ) |  |  | (22.9 | )%
Total net loans originated |  | $ | 348,992 |  |  | $ | 219,510 |  |  | $ | 129,482 |  |  |  | 59.0 | % |  | $ | 280,922 |  |  | $ | 68,070 |  |  |  | 24.2 | %

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

(2) | The Company ceased originating automobile loans in November 2017.

|  | Other Key Metrics |
|  | 2Q 19 |  |  | 1Q 19 |  |  | 2Q 18 |
Net credit losses (1) (2) |  | $ | 24,915 |  |  | $ | 25,243 |  |  | $ | 19,503 |
Percentage of average finance receivables (annualized) |  |  | 10.7 | % |  |  | 10.9 | % |  |  | 9.5 | %
Provision for credit losses (3) |  | $ | 25,714 |  |  | $ | 23,343 |  |  | $ | 20,203 |
Percentage of average finance receivables (annualized) |  |  | 11.0 | % |  |  | 10.1 | % |  |  | 9.9 | %
Percentage of total revenue |  |  | 30.5 | % |  |  | 28.6 | % |  |  | 27.9 | %
General and administrative expenses |  | $ | 37,743 |  |  | $ | 38,183 |  |  | $ | 33,215 |
Percentage of average finance receivables (annualized) |  |  | 16.2 | % |  |  | 16.5 | % |  |  | 16.2 | %
Percentage of total revenue |  |  | 44.8 | % |  |  | 46.7 | % |  |  | 45.9 | %
Same store results: |  |  |  |  |  |  |  |  |  |  |  |
Finance receivables at period-end |  | $ | 956,277 |  |  | $ | 902,090 |  |  | $ | 839,741 |
Finance receivable growth rate |  |  | 12.9 | % |  |  | 12.1 | % |  |  | 15.6 | %
Number of branches in calculation |  |  | 333 |  |  |  | 337 |  |  |  | 334 |

(1) | Includes hurricane-related net credit losses of $1,429, $896, and $1,073 for 2Q 19, 1Q 19, and 2Q 18, respectively.

(2) | Includes net credit losses related to lower utilization of non-file insurance of $1,779, $1,634, and $344 for 2Q 19, 1Q 19, and 2Q 18, respectively.

(3) | Includes hurricane-related provision for credit losses of $(571), $(704), and $(677) for 2Q 19, 1Q 19, and 2Q 18, respectively.

9

|  | Contractual Delinquency by Aging |
|  | 2Q 19 |  |  | 1Q 19 |  |  | 2Q 18 |
Allowance for credit losses (1) |  | $ | 57,200 |  |  |  | 5.9 | % |  | $ | 56,400 |  |  |  | 6.2 | % |  | $ | 48,450 |  |  |  | 5.7 | %
Current |  |  | 805,215 |  |  |  | 82.7 | % |  |  | 762,748 |  |  |  | 83.6 | % |  |  | 704,770 |  |  |  | 83.1 | %
1 to 29 days past due |  |  | 106,017 |  |  |  | 10.9 | % |  |  | 85,942 |  |  |  | 9.4 | % |  |  | 89,510 |  |  |  | 10.6 | %
Delinquent accounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
30 to 59 days |  |  | 22,082 |  |  |  | 2.3 | % |  |  | 18,066 |  |  |  | 2.0 | % |  |  | 18,886 |  |  |  | 2.3 | %
60 to 89 days |  |  | 13,961 |  |  |  | 1.4 | % |  |  | 13,850 |  |  |  | 1.5 | % |  |  | 12,103 |  |  |  | 1.4 | %
90 to 119 days |  |  | 9,962 |  |  |  | 1.1 | % |  |  | 11,745 |  |  |  | 1.3 | % |  |  | 8,373 |  |  |  | 1.0 | %
120 to 149 days |  |  | 8,089 |  |  |  | 0.8 | % |  |  | 9,902 |  |  |  | 1.1 | % |  |  | 6,857 |  |  |  | 0.8 | %
150 to 179 days |  |  | 8,108 |  |  |  | 0.8 | % |  |  | 9,997 |  |  |  | 1.1 | % |  |  | 6,739 |  |  |  | 0.8 | %
Total contractual delinquency (2) |  | $ | 62,202 |  |  |  | 6.4 | % |  | $ | 63,560 |  |  |  | 7.0 | % |  | $ | 52,958 |  |  |  | 6.3 | %
Total finance receivables |  | $ | 973,434 |  |  |  | 100.0 | % |  | $ | 912,250 |  |  |  | 100.0 | % |  | $ | 847,238 |  |  |  | 100.0 | %
1 day and over past due |  | $ | 168,219 |  |  |  | 17.3 | % |  | $ | 149,502 |  |  |  | 16.4 | % |  | $ | 142,468 |  |  |  | 16.9 | %
|  | Contractual Delinquency by Product |
|  | 2Q 19 |  |  | 1Q 19 |  |  | 2Q 18 |
Small loans |  | $ | 33,276 |  |  |  | 7.7 | % |  | $ | 34,990 |  |  |  | 8.3 | % |  | $ | 28,347 |  |  |  | 7.4 | %
Large loans |  |  | 25,447 |  |  |  | 5.1 | % |  |  | 24,893 |  |  |  | 5.6 | % |  |  | 19,600 |  |  |  | 5.0 | %
Automobile loans |  |  | 1,294 |  |  |  | 8.2 | % |  |  | 1,534 |  |  |  | 7.5 | % |  |  | 2,909 |  |  |  | 7.4 | %
Retail loans |  |  | 2,185 |  |  |  | 7.9 | % |  |  | 2,143 |  |  |  | 7.3 | % |  |  | 2,102 |  |  |  | 6.8 | %
Total contractual delinquency (2) |  | $ | 62,202 |  |  |  | 6.4 | % |  | $ | 63,560 |  |  |  | 7.0 | % |  | $ | 52,958 |  |  |  | 6.3 | %

(1) | Includes incremental hurricane allowance for credit losses of $2,000 in 1Q 19.

(2) | Includes 0.4% delinquency related to hurricane-affected branches for 1Q 19.

10

|  | Income Statement Quarterly Trend |
|  | 2Q 18 |  |  | 3Q 18 |  |  | 4Q 18 |  |  | 1Q 19 |  |  | 2Q 19 |  |  | QoQ $ B(W) |  |  | YoY $ B(W) |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest and fee income |  | $ | 66,829 |  |  | $ | 72,128 |  |  | $ | 75,013 |  |  | $ | 74,322 |  |  | $ | 75,974 |  |  | $ | 1,652 |  |  | $ | 9,145 |
Insurance income, net |  |  | 2,882 |  |  |  | 2,898 |  |  |  | 5,624 |  |  |  | 4,113 |  |  |  | 5,066 |  |  |  | 953 |  |  |  | 2,184 |
Other income |  |  | 2,705 |  |  |  | 2,890 |  |  |  | 3,112 |  |  |  | 3,313 |  |  |  | 3,234 |  |  |  | (79 | ) |  |  | 529 |
Total revenue |  |  | 72,416 |  |  |  | 77,916 |  |  |  | 83,749 |  |  |  | 81,748 |  |  |  | 84,274 |  |  |  | 2,526 |  |  |  | 11,858 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provision for credit losses |  |  | 20,203 |  |  |  | 23,640 |  |  |  | 23,698 |  |  |  | 23,343 |  |  |  | 25,714 |  |  |  | (2,371 | ) |  |  | (5,511 | )
Personnel |  |  | 19,390 |  |  |  | 21,376 |  |  |  | 22,074 |  |  |  | 22,393 |  |  |  | 22,511 |  |  |  | (118 | ) |  |  | (3,121 | )
Occupancy |  |  | 5,478 |  |  |  | 5,490 |  |  |  | 5,933 |  |  |  | 6,165 |  |  |  | 6,210 |  |  |  | (45 | ) |  |  | (732 | )
Marketing |  |  | 2,258 |  |  |  | 2,132 |  |  |  | 1,902 |  |  |  | 1,651 |  |  |  | 2,261 |  |  |  | (610 | ) |  |  | (3 | )
Other |  |  | 6,089 |  |  |  | 6,863 |  |  |  | 6,707 |  |  |  | 7,974 |  |  |  | 6,761 |  |  |  | 1,213 |  |  |  | (672 | )
Total general and administrative |  |  | 33,215 |  |  |  | 35,861 |  |  |  | 36,616 |  |  |  | 38,183 |  |  |  | 37,743 |  |  |  | 440 |  |  |  | (4,528 | )
Interest expense |  |  | 7,915 |  |  |  | 8,729 |  |  |  | 9,643 |  |  |  | 9,721 |  |  |  | 9,771 |  |  |  | (50 | ) |  |  | (1,856 | )
Income before income taxes |  |  | 11,083 |  |  |  | 9,686 |  |  |  | 13,792 |  |  |  | 10,501 |  |  |  | 11,046 |  |  |  | 545 |  |  |  | (37 | )
Income taxes |  |  | 2,601 |  |  |  | 2,237 |  |  |  | 3,022 |  |  |  | 2,393 |  |  |  | 2,677 |  |  |  | (284 | ) |  |  | (76 | )
Net income |  | $ | 8,482 |  |  | $ | 7,449 |  |  | $ | 10,770 |  |  | $ | 8,108 |  |  | $ | 8,369 |  |  | $ | 261 |  |  | $ | (113 | )
Net income per common share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.73 |  |  | $ | 0.64 |  |  | $ | 0.92 |  |  | $ | 0.69 |  |  | $ | 0.71 |  |  | $ | 0.02 |  |  | $ | (0.02 | )
Diluted |  | $ | 0.70 |  |  | $ | 0.61 |  |  | $ | 0.90 |  |  | $ | 0.67 |  |  | $ | 0.70 |  |  | $ | 0.03 |  |  | $ | — |
Weighted-average shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 11,658 |  |  |  | 11,672 |  |  |  | 11,672 |  |  |  | 11,712 |  |  |  | 11,706 |  |  |  | 6 |  |  |  | (48 | )
Diluted |  |  | 12,138 |  |  |  | 12,133 |  |  |  | 12,010 |  |  |  | 12,076 |  |  |  | 12,022 |  |  |  | 54 |  |  |  | 116 |
Net interest margin |  | $ | 64,501 |  |  | $ | 69,187 |  |  | $ | 74,106 |  |  | $ | 72,027 |  |  | $ | 74,503 |  |  | $ | 2,476 |  |  | $ | 10,002 |
Net credit margin |  | $ | 44,298 |  |  | $ | 45,547 |  |  | $ | 50,408 |  |  | $ | 48,684 |  |  | $ | 48,789 |  |  | $ | 105 |  |  | $ | 4,491 |

|  | Balance Sheet Quarterly Trend |
|  | 2Q 18 |  |  | 3Q 18 |  |  | 4Q 18 |  |  | 1Q 19 |  |  | 2Q 19 |  |  | QoQ $ Inc (Dec) |  |  | YoY $ Inc (Dec) |
Total assets |  | $ | 868,220 |  |  | $ | 893,279 |  |  | $ | 956,395 |  |  | $ | 953,467 |  |  | $ | 1,019,316 |  |  | $ | 65,849 |  |  | $ | 151,096 |
Finance receivables |  | $ | 847,238 |  |  | $ | 888,076 |  |  | $ | 932,243 |  |  | $ | 912,250 |  |  | $ | 973,434 |  |  | $ | 61,184 |  |  | $ | 126,196 |
Allowance for credit losses |  | $ | 48,450 |  |  | $ | 55,300 |  |  | $ | 58,300 |  |  | $ | 56,400 |  |  | $ | 57,200 |  |  | $ | 800 |  |  | $ | 8,750 |
Long-term debt |  | $ | 595,765 |  |  | $ | 611,593 |  |  | $ | 660,507 |  |  | $ | 628,786 |  |  | $ | 689,310 |  |  | $ | 60,524 |  |  | $ | 93,545 |

|  | Other Key Metrics Quarterly Trend |
|  | 2Q 18 |  |  | 3Q 18 |  |  | 4Q 18 |  |  | 1Q 19 |  |  | 2Q 19 |  |  | QoQ Inc (Dec) |  |  | YoY Inc (Dec) |
Interest and fee yield (annualized) |  |  | 32.7 | % |  |  | 33.2 | % |  |  | 32.9 | % |  |  | 32.1 | % |  |  | 32.5 | % |  |  | 0.4 | % |  |  | (0.2 | )%
Operating expense ratio (1) |  |  | 16.2 | % |  |  | 16.5 | % |  |  | 16.1 | % |  |  | 16.5 | % |  |  | 16.2 | % |  |  | (0.3 | )% |  |  | 0.0 | %
30+ contractual delinquency |  |  | 6.3 | % |  |  | 7.1 | % |  |  | 7.7 | % |  |  | 7.0 | % |  |  | 6.4 | % |  |  | (0.6 | )% |  |  | 0.1 | %
Net credit loss (2) |  |  | 9.5 | % |  |  | 7.7 | % |  |  | 9.1 | % |  |  | 10.9 | % |  |  | 10.7 | % |  |  | (0.2 | )% |  |  | 1.2 | %
Book value per share |  | $ | 21.93 |  |  | $ | 22.68 |  |  | $ | 23.70 |  |  | $ | 24.15 |  |  | $ | 24.88 |  |  | $ | 0.73 |  |  | $ | 2.95 |

(1) | Annualized general and administrative expenses as a percentage of average finance receivables.

(2) | Annualized net credit losses as a percentage of average finance receivables.

11

|  | Finance Receivables by Product |
|  | 2Q 19 |  |  | 1Q 19 |  |  | QoQ $ Inc (Dec) |  |  | QoQ % Inc (Dec) |  |  | 2Q 18 |  |  | YoY $ Inc (Dec) |  |  | YoY % Inc (Dec) |
Small loans |  | $ | 431,214 |  |  | $ | 421,712 |  |  | $ | 9,502 |  |  |  | 2.3 | % |  | $ | 384,690 |  |  | $ | 46,524 |  |  |  | 12.1 | %
Large loans |  |  | 498,757 |  |  |  | 440,707 |  |  |  | 58,050 |  |  |  | 13.2 | % |  |  | 392,101 |  |  |  | 106,656 |  |  |  | 27.2 | %
Total core loans |  |  | 929,971 |  |  |  | 862,419 |  |  |  | 67,552 |  |  |  | 7.8 | % |  |  | 776,791 |  |  |  | 153,180 |  |  |  | 19.7 | %
Automobile loans |  |  | 15,686 |  |  |  | 20,511 |  |  |  | (4,825 | ) |  |  | (23.5 | )% |  |  | 39,414 |  |  |  | (23,728 | ) |  |  | (60.2 | )%
Retail loans |  |  | 27,777 |  |  |  | 29,320 |  |  |  | (1,543 | ) |  |  | (5.3 | )% |  |  | 31,033 |  |  |  | (3,256 | ) |  |  | (10.5 | )%
Total finance receivables |  | $ | 973,434 |  |  | $ | 912,250 |  |  | $ | 61,184 |  |  |  | 6.7 | % |  | $ | 847,238 |  |  | $ | 126,196 |  |  |  | 14.9 | %
Number of branches at period end |  |  | 356 |  |  |  | 360 |  |  |  | (4 | ) |  |  | (1.1 | )% |  |  | 340 |  |  |  | 16 |  |  |  | 4.7 | %
Average finance receivables per branch |  | $ | 2,734 |  |  | $ | 2,534 |  |  | $ | 200 |  |  |  | 7.9 | % |  | $ | 2,492 |  |  | $ | 242 |  |  |  | 9.7 | %

|  | Averages and Yields |
|  | YTD 19 |  |  | YTD 18 |
|  | Average Finance Receivables |  |  | Average Yield (Annualized) |  |  | Average Finance Receivables |  |  | Average Yield (Annualized) |
Small loans |  | $ | 426,732 |  |  |  | 38.4 | % |  | $ | 368,570 |  |  |  | 40.1 | %
Large loans |  |  | 452,975 |  |  |  | 28.3 | % |  |  | 365,865 |  |  |  | 28.5 | %
Automobile loans |  |  | 20,565 |  |  |  | 14.8 | % |  |  | 49,715 |  |  |  | 15.7 | %
Retail loans |  |  | 29,415 |  |  |  | 18.7 | % |  |  | 32,091 |  |  |  | 18.7 | %
Total interest and fee yield |  | $ | 929,687 |  |  |  | 32.3 | % |  | $ | 816,241 |  |  |  | 32.6 | %
Total revenue yield |  | $ | 929,687 |  |  |  | 35.7 | % |  | $ | 816,241 |  |  |  | 35.5 | %

|  | Components of Increase in Interest and Fee Income YTD 19 Compared to YTD 18 Increase (Decrease) |
|  | Volume |  |  | Rate |  |  | Volume & Rate |  |  | Net |
Small loans |  | $ | 11,663 |  |  | $ | (3,208 | ) |  | $ | (506 | ) |  | $ | 7,949 |
Large loans |  |  | 12,422 |  |  |  | (342 | ) |  |  | (82 | ) |  |  | 11,998 |
Automobile loans |  |  | (2,288 | ) |  |  | (235 | ) |  |  | 138 |  |  |  | (2,385 | )
Retail loans |  |  | (250 | ) |  |  | 4 |  |  |  | — |  |  |  | (246 | )
Product mix |  |  | (3,065 | ) |  |  | 2,757 |  |  |  | 308 |  |  |  | — |
Total increase in interest and fee income |  | $ | 18,482 |  |  | $ | (1,024 | ) |  | $ | (142 | ) |  | $ | 17,316 |

12

|  | Net Loans Originated (1) (2) |
|  | YTD 19 |  |  | YTD 18 |  |  | YTD $ Inc (Dec) |  |  | YTD % Inc (Dec) |
Small loans |  | $ | 303,685 |  |  | $ | 288,779 |  |  | $ | 14,906 |  |  |  | 5.2 | %
Large loans |  |  | 253,441 |  |  |  | 197,959 |  |  |  | 55,482 |  |  |  | 28.0 | %
Retail loans |  |  | 11,376 |  |  |  | 14,015 |  |  |  | (2,639 | ) |  |  | (18.8 | )%
Total net loans originated |  | $ | 568,502 |  |  | $ | 500,753 |  |  | $ | 67,749 |  |  |  | 13.5 | %

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

(2) | The Company ceased originating automobile loans in November 2017.

|  | Other Key Metrics |
|  | YTD 19 |  |  | YTD 18 |
Net credit losses (1) (2) |  | $ | 50,157 |  |  | $ | 40,178 |
Percentage of average finance receivables (annualized) |  |  | 10.8 | % |  |  | 9.8 | %
Provision for credit losses (3) |  | $ | 49,057 |  |  | $ | 39,718 |
Percentage of average finance receivables (annualized) |  |  | 10.6 | % |  |  | 9.7 | %
Percentage of total revenue |  |  | 29.5 | % |  |  | 27.4 | %
General and administrative expenses |  | $ | 75,926 |  |  | $ | 67,807 |
Percentage of average finance receivables (annualized) |  |  | 16.3 | % |  |  | 16.6 | %
Percentage of total revenue |  |  | 45.7 | % |  |  | 46.8 | %

(1) | Includes hurricane-related net credit losses of $2,325 and $1,819 for YTD 19 and YTD 18, respectively.

(2) | Includes net credit losses related to lower utilization of non-file insurance of $3,413 and $949 for YTD 19 and YTD 18, respectively.

(3) | Includes hurricane-related provision for credit losses of $(1,275) and $(981) for YTD 19 and YTD 18, respectively.

13