Regional Management Corp. · NYSE:RM
Regional Management — Jefferies Consumer Finance Summit 2016
15 slides from Regional Management's conference presentation, Dec 8, 2016
Slide 1: Jefferies Consumer Finance Summit
Jefferies Consumer Finance Summit December 8, 2016 Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and the responses to various questions contain forward-looking statements, which reflect our current views with respect to, among other things, the Company’s operations and financial performance. You can identify these forward-looking statements by the use of
Slide 3: Investment Highlights
Investment Highlights Attractive Long-Term Market Opportunity Numerous Avenues for Potential Growth Deep Management Experience Credit Risk Function enhances control of the business Multi-Channel Origination Platform Diverse Product Offering (with graduation from small to large loans)
Slide 4: Company Overview
Company Overview 29-year old consumer finance company focused on installment lending based primarily in the Southeast Branch-based with 338 storefronts in 9 states as of September 30, 2016 Loan products include small and large personal loans, auto loans and retail loans Large loans have been key poi
Slide 5: Significant Market Opportunity
Significant Market Opportunity Regional’s 350,000 customer accounts represent minimal fraction of the approximately 115 million Americans that generally align with the Company’s customer base. Believe most of this population is underserved, providing attractive market opportunity for Regional. Perso
Slide 6: Significant Market Opportunity
Significant Market Opportunity Consolidation in consumer finance industry Numerous smaller competitors Online lending Regional branch footprint in only nine states represents strong expansion opportunities Well-positioned and compliant within evolving regulatory landscape Considerable underserved ad
Slide 7: Branch Network – Growing Organically
Branch Network – Growing Organically Note: Branch count as of December 31 of each year Date of Entry: SC: 1987 TX: 2001 NC: 2004 TN: 2007 AL: 2009 OK: 2011 NM: 2012 GA: 2013 VA: 2015 Branch Overview Approximately 356,000 individual borrower accounts through network of 338 branches as of 09/30/16 Tod
Slide 8: Multi-Channel Origination Platform Provides Broad Reach
Multi-Channel Origination Platform Provides Broad Reach Branches are foundation of Regional’s multi-channel strategy Primary point of customer contact Mail campaigns attract ~100,000 new customers per year to Regional Dealership and retailers serve as “virtual” branches Online lending pilot launched
Slide 9: Loan Products Overview
Small Large Size (a) Term (b) Security Net Receivables (c) # of Loans (b) Average APR (d) Range: $500 to $2,500 Average: $1,550 Up to 36 months Non-essential household goods $349.4 million ~269,000 49% Range: $2,501 to $20,000 Average: $4,661 18 to 60 months Title to a vehicle or non-essential house
Slide 10: Historical Financial Performance
Historical Financial Performance Total Revenue Total Receivables and Net Charge-Offs % of Average Receivables Net Income Rebounded net income performance after very difficult 2014 Receivables and revenue have grown in parallel ($ in millions) ($ in millions) ($ in millions)
Slide 11: Recent Quarterly Historical Performance
Recent Quarterly Historical Performance Total Revenue Net Charge-Offs % of Average Receivables & 30+ Delinquency Rates Net Income ($ in millions) ($ in millions) Charged- Off Debt Sale
Slide 12: Strategic Initiative – Implementation of NLS
Strategic Initiative – Implementation of NLS Implementing NLS loan origination and servicing platform – currently operating in three states System features and improvements Significant movement toward paperless environment Electronic applications start the flow of data Automated credit bureau and de
Slide 13: Strategic Initiative – Online Lending
Strategic Initiative – Online Lending Developing digital channel to add to current multi-channel platform Launched online module; currently testing in South Carolina Module extends from application to funding in one 20 minute online session with e-signature and ACH capabilities Software enhancements
Slide 14: Investment Highlights
Investment Highlights Attractive Long-Term Market Opportunity Numerous Avenues for Potential Growth Deep Management Experience Credit Risk Function enhances control of the business Multi-Channel Origination Platform Diverse Product Offering (with graduation from small to large loans)
Slide 15: Regional Management Corp.
Regional Management Corp. ib
Regional Management — Jefferies Consumer Finance Summit 2016 on 6ix