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EX-99.2 - EX-99.2 - Regional Management Corp.d579092dex992.htm
8-K - 8-K - Regional Management Corp.d579092d8k.htm

Exhibit 99.1

 

LOGO

Regional Management Corp. Announces First Quarter 2018 Results

- Net income of $8.6 million and diluted earnings per share of $0.72 -

- 12th consecutive quarter of double-digit total finance receivables growth -

- 7th consecutive quarter of double-digit revenue growth -

Greenville, South Carolina – May 1, 2018 – Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the first quarter ended March 31, 2018.

First Quarter 2018 Highlights

 

    Net income for the first quarter of 2018 was $8.6 million, an increase of 13.2% from the prior-year period. Diluted earnings per share for the first quarter of 2018 was $0.72, based on a diluted share count of 12.0 million.

 

    Total finance receivables as of March 31, 2018 were $805.0 million, an increase of 15.8%, or $110.0 million, from the prior year.

 

    Twelfth consecutive quarter that total finance receivables have grown at least 10% over the prior-year period.

 

    Total core small and large loan finance receivables increased $146.5 million, or 25.3%, compared to the prior-year period.

 

    Large loan finance receivables of $363.9 million increased $121.6 million, or 50.1%, from the prior-year period and now represent 45.2% of the total loan portfolio. Small loan finance receivables as of March 31, 2018 were $360.5 million, an increase of 7.4% over the prior-year period.

 

    Total revenue for the first quarter of 2018 was $72.6 million, a $6.8 million, or 10.3%, increase from the prior-year period.

 

    Seventh consecutive quarter of year-over-year double-digit revenue growth.

 

    Interest and fee income increased 11.6%, driven by a 15.8% increase in finance receivables compared to the prior-year period.

 

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    Overall yield declined 140 basis points on a year-over-year basis primarily due to a shifting product mix, a net 20 basis point reduction related to the temporary shift of insurance claims, and a 10 basis point impact due to the 2017 hurricanes.

 

    Provision for credit losses for the first quarter of 2018 was $19.5 million, an increase of 2.0% from the prior-year period, while total finance receivables increased 15.8%.

 

    Annualized net credit losses as a percentage of finance receivables were 10.2%, a 70 basis point improvement from 10.9% in the prior-year period.

 

    30+ day contractual delinquencies were 6.5% (0.2% of which was due to the 2017 hurricanes), comparable to March 31, 2017 and sequentially down from 7.5% (0.2% of which was also due to the 2017 hurricanes).

“We had another successful quarter to start off 2018,” said Peter R. Knitzer, President and Chief Executive Officer of Regional Management. “We saw continued strong performance on our top line driven by our core loan portfolio, with a double-digit increase in our finance receivables for the 12th consecutive quarter. Credit remained stable, our costs were under control, and we achieved another quarter of double-digit bottom line growth.”

“Furthermore, we have begun to reap the benefits of the systems and modernized infrastructure that we installed over the past couple of years,” continued Mr. Knitzer. “Our employees can better serve our customers with automated underwriting and servicing, our digital capabilities are being integrated into a more seamless experience for our customers, and, over time, we expect an enhanced credit function with the implementation of custom scorecards. All of this allows us to further improve our margins over the longer term. At the same time, we continue to employ our hybrid growth plan of increasing our receivables per branch while reaccelerating our de novo branch expansion, including entering two new states, Missouri and Wisconsin, in the back half of 2018.”

“It is truly an exciting time for all of us at Regional. Our efforts over the past few years have positioned Regional as strongly as we’ve ever been as we continue to focus on delivering long-term shareholder value,” concluded Mr. Knitzer.

First Quarter 2018 Results

Finance receivables outstanding at March 31, 2018 were $805.0 million, a 15.8% increase from $695.0 million in the prior year. Finance receivables increased from continued strong growth in both the core small and large loan portfolios.

 

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For the first quarter ended March 31, 2018, the Company reported total revenue of $72.6 million, a 10.3% increase from $65.8 million in the prior-year period. Interest and fee income for the first quarter of 2018 was $66.2 million, an 11.6% increase from $59.3 million in the prior-year period, primarily due to increases in the small and large loan portfolios compared to the prior-year period. Insurance income, net for the first quarter of 2018 was $3.4 million, a $0.4 million, or 10.9%, reduction from the prior-year period. The decrease was primarily due to the transition in insurance carriers in the prior-year period, causing some of the Company’s insurance claims to impact net credit losses in the first quarter of 2017 instead of insurance income. Other income for the first quarter of 2018 was $3.1 million, an 11.8% increase from the prior-year period.

The provision for credit losses in the first quarter of 2018 was $19.5 million, a 2.0% increase compared to $19.1 million in the prior-year period, while total finance receivables increased 15.8%. Net credit losses were $20.7 million in the first quarter of 2018, an increase of $1.3 million over the prior-year period. The increase over the prior-year period was primarily due to portfolio growth, though it also included $0.7 million of hurricane-related losses and was partially offset by a net $0.4 million reduction in the temporary shift of insurance claims from the insurance line. Annualized net credit losses as a percentage of average finance receivables in the first quarter of 2018 were 10.2%, a 70 basis point improvement from 10.9% in the prior-year period.

General and administrative expenses for the first quarter of 2018 were $34.6 million, an increase of $3.1 million, or 10.0%, from the prior-year period. Annualized general and administrative expenses as a percentage of average finance receivables improved 70 basis points from the prior-year period. General and administrative expenses for the first quarter of 2018 included higher personnel costs related to staffing increases in information technology, centralized collections, and branches to support ongoing loan portfolio growth, as well as higher incentive expense. Sequentially, general and administrative expenses increased $0.6 million, or 1.7%, from the fourth quarter of 2017.

Interest expense was $7.2 million in the first quarter of 2018, compared to $5.2 million in the prior-year period. The increase in interest expense was due to larger long-term debt amounts outstanding from growth in finance receivables, federal funds rate increases, larger unused lines of credit, and incremental debt issuance costs associated with upsizing the senior revolving credit facility and entering into the warehouse credit facility. The Company’s diversified sources of funding continue to position it for long-term growth.

Net income for the first quarter of 2018 was $8.6 million, an increase from $7.6 million in the prior-year period. Diluted earnings per share for the first quarter of 2018 was $0.72, an increase from $0.65 in the prior-year period. Net income in the first quarter of 2017 was boosted by a $1.5 million tax benefit from share-based compensation, while net income for the first quarter of 2018 was positively impacted by approximately the same amount due to the Tax Cuts and Jobs Act of 2017.

2018 De Novo Outlook

As of March 31, 2018, the Company’s branch network consisted of 341 locations. The Company consolidated one location during the first quarter of 2018 and maintains its plan to open between 25 and 30 de novo branches during 2018, all of which should occur during the second half of the year.

 

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Liquidity and Capital Resources

As of March 31, 2018, the Company had finance receivables of $805.0 million and outstanding long-term debt of $550.4 million (consisting of $416.1 million of long-term debt on its $638.0 million senior revolving credit facility, $91.6 million of long-term debt on its $125.0 million revolving warehouse credit facility, and $42.6 million of long-term debt on its 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) 327-6837 (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 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 8, 2018, by telephone at (844) 512-2921 (toll-free) or (412) 317-6671 (international), passcode 10004586. 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: 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 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 impact of changes in tax laws, guidance, and interpretations, including related to certain provisions of the Tax Cuts and Jobs Act;

 

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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, 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

 

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Regional Management Corp. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

(in thousands, except per share amounts)

 

                 Better (Worse)  
     1Q 18     1Q 17     $     %  

Revenue

        

Interest and fee income

   $ 66,151     $ 59,255     $ 6,896       11.6

Insurance income, net

     3,389       3,805       (416     (10.9 )% 

Other income

     3,085       2,760       325       11.8
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     72,625       65,820       6,805       10.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses

        

Provision for credit losses

     19,515       19,134       (381     (2.0 )% 

Personnel

     21,228       18,168       (3,060     (16.8 )% 

Occupancy

     5,618       5,285       (333     (6.3 )% 

Marketing

     1,453       1,205       (248     (20.6 )% 

Other

     6,293       6,796       503       7.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Total general and administrative

     34,592       31,454       (3,138     (10.0 )% 

Interest expense

     7,177       5,213       (1,964     (37.7 )% 
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     11,341       10,019       1,322       13.2

Income taxes

     2,697       2,385       (312     (13.1 )% 
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 8,644     $ 7,634     $ 1,010       13.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per common share:

        

Basic

   $ 0.74     $ 0.66     $ 0.08       12.1
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.72     $ 0.65     $ 0.07       10.8
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares outstanding:

        

Basic

     11,618       11,494       (124     (1.1 )% 
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     12,030       11,715       (315     (2.7 )% 
  

 

 

   

 

 

   

 

 

   

 

 

 

Return on average assets (annualized)

     4.2     4.3    
  

 

 

   

 

 

     

Return on average equity (annualized)

     14.1     14.5    
  

 

 

   

 

 

     

 

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Regional Management Corp. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(in thousands, except par value amounts)

 

                 Increase (Decrease)  
     1Q 18     1Q 17     $     %  

Assets

        

Cash

   $ 3,247     $ 3,505     $ (258     (7.4 )% 

Gross finance receivables

     1,056,425       886,350       170,075       19.2

Unearned finance charges and insurance premiums

     (251,469     (191,346     (60,123     (31.4 )% 
  

 

 

   

 

 

   

 

 

   

 

 

 

Finance receivables

     804,956       695,004       109,952       15.8

Allowance for credit losses

     (47,750     (41,000     (6,750     (16.5 )% 
  

 

 

   

 

 

   

 

 

   

 

 

 

Net finance receivables

     757,206       654,004       103,202       15.8

Restricted cash

     19,064       8,889       10,175       114.5

Property and equipment

     12,214       11,878       336       2.8

Intangible assets

     10,922       6,981       3,941       56.5

Deferred tax asset

     —         725       (725     (100.0 )% 

Other assets

     12,156       4,450       7,706       173.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 814,809     $ 690,432     $ 124,377       18.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

        

Liabilities:

        

Long-term debt

   $ 550,377     $ 462,994     $ 87,383       18.9

Unamortized debt issuance costs

     (4,512     (2,051     (2,461     (120.0 )% 
  

 

 

   

 

 

   

 

 

   

 

 

 

Net long-term debt

     545,865       460,943       84,922       18.4

Accounts payable and accrued expenses

     15,994       15,310       684       4.5

Deferred tax liability

     3,999       —         3,999       100.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     565,858       476,253       89,605       18.8

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, 13,294 shares issued and 11,748 shares outstanding at March 31, 2018 and 13,170 shares issued and 11,624 shares outstanding at March 31, 2017)

     1,329       1,317       12       0.9

Additional paid-in-capital

     95,272       91,485       3,787       4.1

Retained earnings

     177,396       146,423       30,973       21.2

Treasury stock (1,546 shares at March 31, 2018 and 2017)

     (25,046     (25,046     —         0.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

     248,951       214,179       34,772       16.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 814,809     $ 690,432     $ 124,377       18.0
  

 

 

   

 

 

   

 

 

   

 

 

 

 

7


Regional Management Corp. and Subsidiaries

Selected Financial Data

(Unaudited)

(in thousands, except per share amounts)

 

     Averages and Yields  
     1Q 18     4Q 17     1Q 17  
     Average Finance
Receivables
     Average Yield
(Annualized)
    Average Finance
Receivables
     Average Yield
(Annualized)
    Average Finance
Receivables
     Average Yield
(Annualized)
 

Small loans

   $ 370,513        40.1   $ 369,241        41.5   $ 349,521        42.3

Large loans

     355,784        28.5     328,759        29.1     239,033        28.7

Automobile loans

     55,515        15.4     66,664        15.6     88,150        16.6

Retail loans

     32,657        18.5     32,243        19.9     32,560        18.7
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total interest and fee yield

   $ 814,469        32.5   $ 796,907        33.3   $ 709,264        33.4
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total revenue yield

   $ 814,469        35.7   $ 796,907        36.2   $ 709,264        37.1
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

     Components of Increase in Interest and Fee Income
1Q 18 Compared to 1Q 17
Increase (Decrease)
 
     Volume     Rate     Volume & Rate     Net  

Small loans

   $ 2,218     $ (1,847   $ (111   $ 260  

Large loans

     8,380       (154     (74     8,152  

Automobile loans

     (1,351     (248     92       (1,507

Retail loans

     5       (13     (1     (9

Product mix

     (463     613       (150     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total increase in interest and fee income

   $ 8,789     $ (1,649   $ (244   $ 6,896  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

     Net Loans Originated (1)  
     1Q 18      4Q 17      QoQ $
Inc (Dec)
    QoQ %
Inc (Dec)
    1Q 17      YoY $
Inc (Dec)
    YoY %
Inc (Dec)
 

Small loans

   $ 123,756      $ 149,299      $ (25,543     (17.1 )%    $ 115,359      $ 8,397       7.3

Large loans

     88,773        106,680        (17,907     (16.8 )%      57,020        31,753       55.7

Automobile loans (2)

     —          1,927        (1,927     (100.0 )%      8,789        (8,789     (100.0 )% 

Retail loans

     7,302        8,363        (1,061     (12.7 )%      6,264        1,038       16.6
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total net loans originated

   $ 219,831      $ 266,269      $ (46,438     (17.4 )%    $ 187,432      $ 32,399       17.3
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

(1) Represents the balance of loan origination and refinancing net of unearned finance charges
(2) The Company ceased originating automobile loans in November 2017.

 

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     Other Key Metrics  
     1Q 18     4Q 17     1Q 17  

Net credit losses

   $ 20,675     $ 17,954     $ 19,384  

Percentage of average finance receivables (annualized)

     10.2     9.0     10.9

Provision for credit losses

   $ 19,515     $ 19,464     $ 19,134  

Percentage of average finance receivables (annualized)

     9.6     9.8     10.8

Percentage of total revenue

     26.9     27.0     29.1

General and administrative expenses

   $ 34,592     $ 34,019     $ 31,454  

Percentage of average finance receivables (annualized)

     17.0     17.1     17.7

Percentage of total revenue

     47.6     47.2     47.8

Same store results:

      

Finance receivables at period-end

   $ 792,495     $ 806,921     $ 682,218  

Finance receivable growth rate

     14.1     12.7     12.6

Number of branches in calculation

     331       331       329  

 

     Finance Receivables by Product  
     1Q 18      4Q 17      QoQ $
Inc (Dec)
    QoQ %
Inc (Dec)
    1Q 17      YoY $
Inc (Dec)
    YoY %
Inc (Dec)
 

Small loans

   $ 360,470      $ 375,772      $ (15,302     (4.1 )%    $ 335,552      $ 24,918       7.4

Large loans

     363,931        347,218        16,713       4.8     242,380        121,551       50.1
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total core loans

     724,401        722,990        1,411       0.2     577,932        146,469       25.3

Automobile loans

     48,704        61,423        (12,719     (20.7 )%      85,869        (37,165     (43.3 )% 

Retail loans

     31,851        33,050        (1,199     (3.6 )%      31,203        648       2.1
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total finance receivables

   $ 804,956      $ 817,463      $ (12,507     (1.5 )%    $ 695,004      $ 109,952       15.8
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Number of branches at period end

     341        342        (1     (0.3 )%      344        (3     (0.9 )% 

Average finance receivables per branch

   $ 2,361      $ 2,390      $ (29     (1.2 )%    $ 2,020      $ 341       16.9
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

9


     Contractual Delinquency by Aging  
     1Q 18     4Q 17     1Q 17  

Allowance for credit losses (1)

   $ 47,750        5.9   $ 48,910        6.0   $ 41,000        5.9

Current

     683,206        84.9     669,451        81.9     586,085        84.3

1 to 29 days past due

     69,034        8.6     86,533        10.6     63,978        9.2
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Delinquent accounts:

               

30 to 59 days

     14,858        1.8     18,728        2.2     13,860        2.1

60 to 89 days

     11,495        1.4     15,297        1.9     9,889        1.4

90 to 119 days

     9,656        1.2     11,339        1.4     7,569        1.0

120 to 149 days

     7,905        1.0     8,865        1.1     6,975        1.0

150 to 179 days

     8,802        1.1     7,250        0.9     6,648        1.0
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total contractual delinquency (2)

   $ 52,716        6.5   $ 61,479        7.5   $ 44,941        6.5
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total finance receivables

   $ 804,956        100.0   $ 817,463        100.0   $ 695,004        100.0
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

1 day and over past due

   $ 121,750        15.1   $ 148,012        18.1   $ 108,919        15.7
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
     Contractual Delinquency by Product  
     1Q 18     4Q 17     1Q 17  

Small loans

   $ 29,586        8.2   $ 35,246        9.4   $ 26,573        7.9

Large loans

     17,723        4.9     18,540        5.3     12,142        5.0

Automobile loans

     3,132        6.4     4,896        8.0     4,513        5.3

Retail loans

     2,275        7.1     2,797        8.5     1,713        5.5
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total contractual delinquency (2)

   $ 52,716        6.5   $ 61,479        7.5   $ 44,941        6.5
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

(1) Includes incremental hurricane allowance for credit losses of $1,750 and $2,760 for 1Q 18 and 4Q 17, respectively.

(2) 1Q 18 and 4Q 17 delinquency were each impacted 0.2% by the hurricane-affected branches.

 

10


     Quarterly Trend  
     1Q 17      2Q 17      3Q 17      4Q 17      1Q 18      QoQ $
B(W)
    YoY $
B(W)
 

Revenue

                   

Interest and fee income

   $ 59,255      $ 59,787      $ 63,615      $ 66,377      $ 66,151      $ (226   $ 6,896  

Insurance income, net

     3,805        3,085        3,095        3,076        3,389        313       (416

Other income

     2,760        2,466        2,484        2,654        3,085        431       325  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total revenue

     65,820        65,338        69,194        72,107        72,625        518       6,805  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Expenses

                   

Provision for credit losses

     19,134        18,589        20,152        19,464        19,515        (51     (381

Personnel

     18,168        18,387        19,534        19,903        21,228        (1,325     (3,060

Occupancy

     5,285        5,419        5,480        5,346        5,618        (272     (333

Marketing

     1,205        1,779        2,303        1,841        1,453        388       (248

Other

     6,796        6,057        6,523        6,929        6,293        636       503  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total general and administrative

     31,454        31,642        33,840        34,019        34,592        (573     (3,138

Interest expense

     5,213        5,221        6,658        6,816        7,177        (361     (1,964
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Income before income taxes

     10,019        9,886        8,544        11,808        11,341        (467     1,322  

Income taxes

     2,385        3,751        3,235        923        2,697        (1,774     (312
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net income

   $ 7,634      $ 6,135      $ 5,309      $ 10,885      $ 8,644      $ (2,241   $ 1,010  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net income per common share:

                   

Basic

   $ 0.66      $ 0.53      $ 0.46      $ 0.94      $ 0.74      $ (0.20   $ 0.08  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Diluted

   $ 0.65      $ 0.52      $ 0.45      $ 0.92      $ 0.72      $ (0.20   $ 0.07  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Weighted-average shares outstanding:

                   

Basic

     11,494        11,554        11,563        11,592        11,618        (26     (124
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Diluted

     11,715        11,730        11,812        11,875        12,030        (155     (315
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net interest margin

   $ 60,607      $ 60,117      $ 62,536      $ 65,291      $ 65,448      $ 157     $ 4,841  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net credit margin

   $ 41,473      $ 41,528      $ 42,384      $ 45,827      $ 45,933      $ 106     $ 4,460  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
     1Q 17      2Q 17      3Q 17      4Q 17      1Q 18      QoQ $
Inc (Dec)
    YoY $
Inc (Dec)
 

Total assets

   $ 690,432      $ 727,533      $ 779,850      $ 829,483      $ 814,809      $ (14,674   $ 124,377  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Finance receivables

   $ 695,004      $ 726,767      $ 774,856      $ 817,463      $ 804,956      $ (12,507   $ 109,952  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Allowance for credit losses

   $ 41,000      $ 42,000      $ 47,400      $ 48,910      $ 47,750      $ (1,160   $ 6,750  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Long-term debt

   $ 462,994      $ 497,049      $ 538,351      $ 571,496      $ 550,377      $ (21,119   $ 87,383  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
     General & Administrative Expenses Trend  
     1Q 17      2Q 17      3Q 17      4Q 17      1Q 18      QoQ $
B(W)
    YoY $
B(W)
 

Legacy operations expenses

   $ 20,773      $ 19,707      $ 21,267      $ 21,715      $ 22,588      $ (873   $ (1,815

2018 new branch expenses

     —          —          —          —          —          —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total operations expenses

     20,773        19,707        21,267        21,715        22,588        (873     (1,815

Marketing expenses

     1,205        1,779        2,303        1,841        1,453        388       (248

Home office expenses

     9,476        10,156        10,270        10,463        10,551        (88     (1,075
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total G&A expenses

   $ 31,454      $ 31,642      $ 33,840      $ 34,019      $ 34,592      $ (573   $ (3,138
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

11