Exhibit 99.1
Regional Management Corp. Announces Fourth Quarter 2016 Results
- Net income of $6.5 million; diluted earnings per share of $0.55 -
- Finance receivable growth of 14.2% from the prior year -
- Portfolio grows to $717.8 million as of December 31, 2016 -
Greenville, South Carolina – February 7, 2017 –Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the fourth quarter and full year ended December 31, 2016.
Fourth Quarter 2016 Highlights
| | • | | Net income for the fourth quarter of 2016 was $6.5 million, a decline of 12.2% from the prior-year period, whilenon-GAAP net income was $6.6 million, an increase of 4.8% from the prior-year period.Non-GAAP net income excludes $0.1 million ofafter-taxnon-operating system implementation costs in the fourth quarters of 2016 and 2015, as well as $1.2 million inafter-tax proceeds from the bulk sale ofcharged-off loans (“bulk sale”) in the fourth quarter of 2015. Diluted earnings per share for the fourth quarter of 2016 were $0.55, and on anon-GAAP basis, diluted earnings per share were $0.56. |
| | • | | Total finance receivables as of December 31, 2016 were $717.8 million, an increase of 14.2%, or $89.3 million, from the prior year and up 3.1%, or $21.6 million, sequentially: |
| | • | | Seventh consecutive quarter that total finance receivables have increased at least 10% over the prior-year period. |
| | • | | Large loan finance receivables of $235.3 million increased $88.8 million, or 60.6%, from the prior-year period and now represent nearly 33% of the total loan portfolio. |
| | • | | Total revenue for the fourth quarter of 2016 was $64.0 million, a $7.3 million, or 12.9%, increase from the prior-year period, and a $1.5 million, or 2.5%, increase sequentially. |
| | • | | Strong interest and fee income increase of 16.2% driven by 14.2% increase in receivables. |
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| | • | | Overall yield declined 70 basis points on a year-over-year basis and 80 basis points sequentially. The yield declines are primarily due to higher insurance claims, partially from the impact of Hurricane Matthew. |
| | • | | Net credit losses for the fourth quarter of 2016 were $17.3 million, an increase of $5.5 million versus the prior-year period (an increase of $3.5 million excluding the bulk sale in the fourth quarter of 2015). Annualized net credit losses as a percentage of finance receivables were 9.8%, up 210 basis points compared to the prior-year period (up 80 basis points excluding the bulk sale). |
| | • | | Total delinquencies as a percentage of total finance receivables as of December 31, 2016 were 18.1%, a slight decline from 18.2% as of September 30, 2016 and an improvement from 20.3% as of December 31, 2015. |
| | • | | 30+ day contractual delinquencies were 7.4%, an increase sequentially from 7.1% as of September 30, 2016 – consistent with the seasonality of Regional Management’s business – and up from 7.2% as of December 31, 2015. |
“We completed 2016 with another strong quarterly performance from our core small and large loan portfolios,” said Peter R. Knitzer, Chief Executive Officer of Regional Management Corp. “Total finance receivables increased 14% from the prior year, helping us to generate 16% year-over-year growth in our interest and fee income. We also were successful in the quarter keeping our overall operating expenses stable with the prior-year period.”
“The combination of strong growth, a corresponding build of allowance, and high late stage delinquencies at the end of the third quarter resulted in an increased provision in the fourth quarter versus the prior-year period,” added Mr. Knitzer. “While early stage delinquencies were stable at the end of the fourth quarter, our late stage delinquencies remained elevated, and as a result, we expect net credit losses in the first quarter of 2017 to be slightly higher sequentially compared to the fourth quarter of 2016. To address this, we are eliminating lending to specific segments that roll to losses at higher rates.”
“We continue to make progress in converting to our new operating platform,” continued Mr. Knitzer. “The NLS system is already providing richer, more actionable information on our customers, as well as improved workflows in our sales and servicing processes. After successfully completing three states, we assessed our plans and determined to build enhanced functionality into the system prior to converting additional states. As a result, we will spend the first quarter completing this build and plan to resume conversions in the second quarter. While this will cause us to move back our timeline to complete the conversion to the end of the year, we believe that it is important to build these better capabilities earlier on to improve the customer experience and contribute to our long-term success.”
“Finally, we continue to see the opportunity in the new year to further grow our receivables and bottom line through our current branch network, as we did in 2016. After successful testing in the fourth quarter, we are ready to roll out improved targeting and segmentation in our direct mail campaigns to drive traffic to our existing branches. We also expect to expand our branch network in 2017 in Virginia. We believe this hybrid approach of de novo expansion, coupled with a focus on growth within our existing footprint, will help to drive long-term value for the Company,” concluded Mr. Knitzer.
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Fourth Quarter 2016 Results
Finance receivables outstanding at December 31, 2016 were $717.8 million, a 14.2% increase from $628.4 million in the prior year. Finance receivables increased primarily due to an increase in both the small and large loan portfolios resulting from Regional Management’s marketing efforts and the net addition of 8 branches since December 31, 2015. On a sequential basis, finance receivables increased by $21.6 million from the third quarter.
For the fourth quarter ended December 31, 2016, the Company reported total revenue of $64.0 million, a 12.9% increase from $56.7 million in the prior-year period. Interest and fee income for the fourth quarter of 2016 was $59.7 million, a 16.2% increase from $51.3 million in the prior-year period, primarily due to an increase in the portfolios of both small and large loans compared to the prior-year period. Insurance income, net for the fourth quarter of 2016 was $1.6 million, a decline of $1.3 million from the prior-year period due primarily to increased claims expense (non-filing claims, life claims, and property claims were all elevated in the quarter, with most property claims stemming from Hurricane Matthew). Other income for the fourth quarter of 2016 was $2.8 million, a 10.7% increase from the prior-year period and consistent with portfolio growth.
The provision for credit losses in the fourth quarter of 2016 was $19.4 million versus $11.4 million in the prior-year period. Excluding the gain on bulk sale, the provision for credit losses in the fourth quarter of 2015 was $13.4 million. The $6.0 million increase in the provision for credit losses, excluding the bulk sale, was due to an increase in net credit losses of $3.5 million and an increase in the estimated allowance for credit losses of $2.5 million.
Net credit losses were $17.3 million in the fourth quarter of 2016 versus $11.8 million in the prior-year period ($13.7 million excluding the bulk sale). Annualized net credit losses as a percentage of average finance receivables in the fourth quarter of 2016 were 9.8%, an increase from 7.7% in the prior-year period (9.0% excluding the bulk sale). In the fourth quarter of 2015, the Company released $0.3 million of allowance for credit losses compared to building allowance of $2.2 million in the fourth quarter of 2016.
General and administrative expenses for the fourth quarter of 2016 were $28.8 million, an increase of 1.0%, or $0.3 million, from the prior-year period. Home office expenses increased $0.9 million from the prior-year period, while operations expenses in the fourth quarter of 2016 improved $0.7 million from the prior-year period. Sequentially, general and administrative expenses declined $1.6 million, or 5.3%, from the third quarter of 2016. Loan system conversion costs in both the fourth quarters of 2016 and 2015 were $0.2 million.
GAAP net income for the fourth quarter of 2016 was $6.5 million, a decrease from $7.4 million in the prior-year period. Excluding the aforementioned non-operating expenses in the fourth quarters of 2016 and 2015, as well as the bulk sale in the fourth quarter of 2015, non-GAAP net income in the fourth quarter of 2016 would have been $6.6 million versusnon-GAAP net income of $6.3 million in the prior-year period. GAAP diluted earnings per share for the fourth quarter
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of 2016 were $0.55, a slight reduction from $0.56 in the prior-year period.Non-GAAP diluted earnings per share for the fourth quarter of 2016 were $0.56, an increase from $0.48 in the prior-year period. For a reconciliation ofnon-GAAP financial measures to the comparable GAAP financial measure, please refer to the reconciliation tables accompanying this release.
Full Year 2016 Results
For the full year ended December 31, 2016, the Company reported total revenue of $240.5 million, a 10.7% increase from $217.3 million in the prior year. Interest and fee income for the full year ended December 31, 2016 was $221.0 million, a 12.9% increase from $195.8 million in the prior-year period, primarily due to a significant increase in the portfolios of both small and large loans compared to the prior year. Insurance income, net for the full year ended December 31, 2016 was $9.5 million, an 18.9% decrease from the prior year, primarily attributable to increased claims expense. Other income for the full year ended December 31, 2016 was $10.1 million, an increase of 2.4% from the prior year.
The provision for credit losses for the full year ended December 31, 2016 was $63.0 million versus $47.3 million in the prior year. Excluding the gain on bulk sale, the provision for credit losses for 2015 was $49.3 million. The $13.7 million increase in the provision for credit losses, excluding the bulk sale, was due to an increase in net credit losses of $6.8 million and an increase in the estimate allowance of $6.9 million, primarily due to portfolio growth.
Net credit losses for the full year ended December 31, 2016 were $59.2 million compared to $50.4 million in the prior year ($52.4 million excluding the bulk sale). Net credit losses as a percentage of average finance receivables for the full year ended December 31, 2016 was 9.0%, a slight increase from 8.8% in the prior year (and a slight decrease from 9.1% excluding the bulk sale). In 2015, the Company released $3.1 million of allowance compared to an increase in the estimated allowance of $3.8 million in 2016.
General and administrative expenses for the full year ended December 31, 2016 were $118.6 million, an increase of $3.0 million, or 2.6%, from $115.6 million in the prior year. The full year 2016 results included $1.6 million in loan system conversion costs versus $0.8 million in 2015. Full year 2015 results also included $1.5 million innon-operating expenses associated with a CEO stock grant.
GAAP net income for the full year ended December 31, 2016 was $24.0 million, a 2.9% increase compared to GAAP net income of $23.4 million in the prior year, and diluted earnings per share for the full year ended December 31, 2016 were $1.99 compared to $1.79 in the prior year. Excluding the aforementionednon-operating expenses and the bulk sale,non-GAAP net income for the full year ended December 31, 2016 totaled $25.0 million, a 4.6% increase compared tonon-GAAP net income of $23.9 million in the prior year, andnon-GAAP diluted earnings per share were $2.07, compared to $1.83 in the prior year.
2017 De Novo Outlook
As of December 31, 2016, the Company’s branch network consisted of 339 locations. For the full year 2017, the Company plans to generate receivable growth through improved efficiency
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and marketing efforts at its current branch network, as well as focus its efforts on fully implementing its new loan management system. As a result, the Company plans to open between 10 and 15 de novo branches during 2017.
Liquidity and Capital Resources
As of December 31, 2016, the Company had finance receivables of $717.8 million and outstanding long-term debt of $491.7 million (consisting of $452.8 million of long-term debt on its $585.0 million senior revolving credit facility and $38.8 million of long-term debt on its $75.7 million amortizing loan).
Conference Call Information
Regional Management Corp. will host a conference call and webcast today at 5:00 PM ET to discuss these results.
Thedial-in number for the conference call is (855)590-2959 (toll-free) or (503)343-6651 (direct), passcode 59594761. 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 atwww.RegionalManagement.com.
A replay will be available following the end of the call through Tuesday, February 14, 2017, by telephone at (855)859-2056 (toll-free) or (404)537-3406 (direct), passcode 59594761. A webcast replay of the call will be available atwww.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 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,
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state, or local laws, regulations, or regulatory policies and practices, and risks associated with the manner in which laws and regulations are interpreted, implemented, and enforced; the timing and amount of revenues that may be recognized by Regional Management; changes in current revenue and expense trends (including trends affecting delinquencies and credit losses); changes in Regional Management’s markets and general changes in the economy (particularly in the markets served by Regional Management); changes in the competitive environment in which Regional Management operates or in the demand for its products; risks related to acquisitions; changes in operating and administrative expenses; and the departure, transition, or replacement of key personnel. Such factors and others are discussed in greater detail in Regional Management’s filings with the Securities and Exchange Commission. Regional Management will not update the information contained in this press release beyond the publication date, except to the extent required by law, and is not responsible for changes made to this document by wire services or Internet services.
About Regional Management Corp.
Regional Management Corp. (NYSE: RM) is a diversified consumer finance company providing a broad array of loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies and other traditional lenders. Regional Management began operations in 1987 with four branches in South Carolina and has since expanded its branch network across South Carolina, Texas, North Carolina, Tennessee, Alabama, Oklahoma, New Mexico, Georgia and Virginia. Each of its loan products is structured on a fixed rate, fixed term basis with fully amortizing equal monthly installment payments and is repayable at any time without penalty. Regional Management’s loans are sourced through its multiple channel platform, including in its branches, through direct mail campaigns, independent and franchise automobile dealerships, online credit application networks, retailers and its consumer website. For more information, please visitwww.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) | | | | | | | | | Better (Worse) | |
| | | 4Q’16 | | | 4Q’15 | | | $ | | | % | | | YTD’16 | | | YTD’15 | | | $ | | | % | |
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and fee income | | $ | 59,654 | | | $ | 51,320 | | | $ | 8,334 | | | | 16.2 | % | | $ | 220,963 | | | $ | 195,794 | | | $ | 25,169 | | | | 12.9 | % |
Insurance income, net | | | 1,570 | | | | 2,838 | | | | (1,268 | ) | | | (44.7 | )% | | | 9,456 | | | | 11,654 | | | | (2,198 | ) | | | (18.9 | )% |
Other income | | | 2,797 | | | | 2,527 | | | | 270 | | | | 10.7 | % | | | 10,099 | | | | 9,858 | | | | 241 | | | | 2.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | 64,021 | | | | 56,685 | | | | 7,336 | | | | 12.9 | % | | | 240,518 | | | | 217,306 | | | | 23,212 | | | | 10.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision for credit losses | | | 19,427 | | | | 11,449 | | | | (7,978 | ) | | | (69.7 | )% | | | 63,014 | | | | 47,348 | | | | (15,666 | ) | | | (33.1 | )% |
Personnel | | | 16,998 | | | | 17,283 | | | | 285 | | | | 1.6 | % | | | 68,979 | | | | 69,247 | | | | 268 | | | | 0.4 | % |
Occupancy | | | 5,251 | | | | 4,522 | | | | (729 | ) | | | (16.1 | )% | | | 20,059 | | | | 17,313 | | | | (2,746 | ) | | | (15.9 | )% |
Marketing | | | 1,474 | | | | 1,403 | | | | (71 | ) | | | (5.1 | )% | | | 6,837 | | | | 7,017 | | | | 180 | | | | 2.6 | % |
Other | | | 5,103 | | | | 5,342 | | | | 239 | | | | 4.5 | % | | | 22,757 | | | | 22,021 | | | | (736 | ) | | | (3.3 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total general and administrative | | | 28,826 | | | | 28,550 | | | | (276 | ) | | | (1.0 | )% | | | 118,632 | | | | 115,598 | | | | (3,034 | ) | | | (2.6 | )% |
Interest expense | | | 5,287 | | | | 4,350 | | | | (937 | ) | | | (21.5 | )% | | | 19,924 | | | | 16,221 | | | | (3,703 | ) | | | (22.8 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 10,481 | | | | 12,336 | | | | (1,855 | ) | | | (15.0 | )% | | | 38,948 | | | | 38,139 | | | | 809 | | | | 2.1 | % |
Income taxes | | | 4,014 | | | | 4,969 | | | | 955 | | | | 19.2 | % | | | 14,917 | | | | 14,774 | | | | (143 | ) | | | (1.0 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 6,467 | | | $ | 7,367 | | | $ | (900 | ) | | | (12.2 | )% | | $ | 24,031 | | | $ | 23,365 | | | $ | 666 | | | | 2.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income per common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.57 | | | $ | 0.57 | | | $ | — | | | | 0.0 | % | | $ | 2.03 | | | $ | 1.82 | | | $ | 0.21 | | | | 11.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted | | $ | 0.55 | | | $ | 0.56 | | | $ | (0.01 | ) | | | (1.8 | )% | | $ | 1.99 | | | $ | 1.79 | | | $ | 0.20 | | | | 11.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted-average shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 11,408 | | | | 12,891 | | | | 1,483 | | | | 11.5 | % | | | 11,824 | | | | 12,849 | | | | 1,025 | | | | 8.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted | | | 11,763 | | | | 13,105 | | | | 1,342 | | | | 10.2 | % | | | 12,085 | | | | 13,074 | | | | 989 | | | | 7.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets (annualized) | | | 3.7 | % | | | 4.9 | % | | | | | | | | | | | 3.7 | % | | | 4.2 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average equity (annualized) | | | 12.7 | % | | | 14.6 | % | | | | | | | | | | | 12.0 | % | | | 12.2 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Regional Management Corp. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(in thousands, except par value amounts)
| | | | | | | | | | | | | | | | |
| | | | | | | | | Increase (Decrease) | |
| | | 4Q’16 | | | 4Q’15 | | | $ | | | % | |
Assets | | | | | | | | | | | | | | | | |
Cash | | $ | 4,446 | | | $ | 7,654 | | | $ | (3,208 | ) | | | (41.9 | )% |
Gross finance receivables | | | 916,954 | | | | 785,042 | | | | 131,912 | | | | 16.8 | % |
Unearned finance charges and insurance premiums | | | (199,179 | ) | | | (156,598 | ) | | | (42,581 | ) | | | (27.2 | )% |
| | | | | | | | | | | | | | | | |
Finance receivables | | | 717,775 | | | | 628,444 | | | | 89,331 | | | | 14.2 | % |
Allowance for credit losses | | | (41,250 | ) | | | (37,452 | ) | | | (3,798 | ) | | | (10.1 | )% |
| | | | | | | | | | | | | | | | |
Net finance receivables | | | 676,525 | | | | 590,992 | | | | 85,533 | | | | 14.5 | % |
Property and equipment | | | 11,693 | | | | 9,049 | | | | 2,644 | | | | 29.2 | % |
Restricted cash | | | 8,297 | | | | 10,506 | | | | (2,209 | ) | | | (21.0 | )% |
Intangible assets | | | 6,448 | | | | 3,023 | | | | 3,425 | | | | 113.3 | % |
Deferred tax asset | | | 33 | | | | 1,982 | | | | (1,949 | ) | | | (98.3 | )% |
Other assets | | | 4,782 | | | | 3,167 | | | | 1,615 | | | | 51.0 | % |
| | | | | | | | | | | | | | | | |
Total assets | | $ | 712,224 | | | $ | 626,373 | | | $ | 85,851 | | | | 13.7 | % |
| | | | | | | | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | |
Long-term debt | | $ | 491,678 | | | $ | 411,177 | | | $ | 80,501 | | | | 19.6 | % |
Unamortized debt issuance costs | | | (2,152 | ) | | | (2,692 | ) | | | 540 | | | | 20.1 | % |
| | | | | | | | | | | | | | | | |
Net long-term debt | | | 489,526 | | | | 408,485 | | | | 81,041 | | | | 19.8 | % |
Accounts payable and accrued expenses | | | 15,223 | | | | 12,661 | | | | 2,562 | | | | 20.2 | % |
| | | | | | | | | | | | | | | | |
Total liabilities | | | 504,749 | | | | 421,146 | | | | 83,603 | | | | 19.9 | % |
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, 12,996 shares issued and 11,450 shares outstanding at December 31, 2016 and 12,914 shares issued and outstanding at December 31, 2015 | | | 1,300 | | | | 1,291 | | | | 9 | | | | 0.7 | % |
Additionalpaid-in-capital | | | 92,432 | | | | 89,178 | | | | 3,254 | | | | 3.6 | % |
Retained earnings | | | 138,789 | | | | 114,758 | | | | 24,031 | | | | 20.9 | % |
Treasury stock, 1,546 shares at December 31, 2016 | | | (25,046 | ) | | | — | | | | (25,046 | ) | | | (100.0 | )% |
| | | | | | | | | | | | | | | | |
Total stockholders’ equity | | | 207,475 | | | | 205,227 | | | | 2,248 | | | | 1.1 | % |
| | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 712,224 | | | $ | 626,373 | | | $ | 85,851 | | | | 13.7 | % |
| | | | | | | | | | | | | | | | |
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Regional Management Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
(in thousands, except per share amounts)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Averages and Yields | |
| | | 4Q’16 | | | 3Q’16 | | | 4Q’15 | |
| | | Average Finance
Receivables | | | Average Yield
(Annualized) | | | Average Finance
Receivables | | | Average Yield
(Annualized) | | | Average Finance
Receivables | | | Average Yield
(Annualized) | |
Small loans | | $ | 354,276 | | | | 42.6 | % | | $ | 337,674 | | | | 43.3 | % | | $ | 332,378 | | | | 42.2 | % |
Large loans | | | 225,786 | | | | 29.0 | % | | | 206,437 | | | | 29.0 | % | | | 133,457 | | | | 28.0 | % |
Automobile loans | | | 93,866 | | | | 17.0 | % | | | 99,113 | | | | 17.8 | % | | | 122,049 | | | | 18.4 | % |
Retail loans | | | 33,013 | | | | 19.0 | % | | | 31,317 | | | | 19.4 | % | | | 26,453 | | | | 19.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest and fee yield | | $ | 706,941 | | | | 33.8 | % | | $ | 674,541 | | | | 34.0 | % | | $ | 614,337 | | | | 33.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue yield | | $ | 706,941 | | | | 36.2 | % | | $ | 674,541 | | | | 37.0 | % | | $ | 614,337 | | | | 36.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | Components of Increase in Interest and Fee Income
4Q’16 Compared to 4Q’15
Increase (Decrease) | |
| | | Volume | | | Rate | | | Net | |
Small loans | | $ | 2,330 | | | $ | 346 | | | $ | 2,676 | |
Large loans | | | 6,676 | | | | 326 | | | | 7,002 | |
Automobile loans | | | (1,224 | ) | | | (401 | ) | | | (1,625 | ) |
Retail loans | | | 312 | | | | (31 | ) | | | 281 | |
| | | | | | | | | | | | |
Total increase in interest and fee income | | $ | 8,094 | | | $ | 240 | | | $ | 8,334 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Loans Originated (1) | |
| | | 4Q’16 | | | 3Q’16 | | | QoQ $
Inc (Dec) | | | QoQ %
Inc (Dec) | | | 4Q’15 | | | YoY $
Inc (Dec) | | | YoY %
Inc (Dec) | |
Small loans | | $ | 152,868 | | | $ | 160,642 | | | $ | (7,774 | ) | | | (4.8 | )% | | $ | 164,304 | | | $ | (11,436 | ) | | | (7.0 | )% |
Large loans | | | 67,273 | | | | 62,846 | | | | 4,427 | | | | 7.0 | % | | | 52,686 | | | | 14,587 | | | | 27.7 | % |
Automobile loans | | | 8,099 | | | | 11,099 | | | | (3,000 | ) | | | (27.0 | )% | | | 7,563 | | | | 536 | | | | 7.1 | % |
Retail loans | | | 8,043 | | | | 9,258 | | | | (1,215 | ) | | | (13.1 | )% | | | 8,978 | | | | (935 | ) | | | (10.4 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total net loans originated | | $ | 236,283 | | | $ | 243,845 | | | $ | (7,562 | ) | | | (3.1 | )% | | $ | 233,531 | | | $ | 2,752 | | | | 1.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Represents the balance of loan origination and refinancing net of unearned finance charges |
9
| | | | | | | | | | | | |
| | | Other Key Metrics | |
| | | 4Q’16 | | | 3Q’16 | | | 4Q’15 | |
Net credit losses | | $ | 17,277 | | | $ | 13,510 | | | $ | 11,783 | |
Percentage of average finance receivables (annualized) | | | 9.8 | % | | | 8.0 | % | | | 7.7 | % |
Bulk sale | | | — | | | | — | | | | 1,964 | |
| | | | | | | | | | | | |
Net credit losses (excluding bulk sale) | | $ | 17,277 | | | $ | 13,510 | | | $ | 13,747 | |
Percentage of average finance receivables (annualized) | | | 9.8 | % | | | 8.0 | % | | | 9.0 | % |
| | | |
Provision for credit losses | | $ | 19,427 | | | $ | 16,410 | | | $ | 11,449 | |
Bulk sale | | | — | | | | — | | | | 1,964 | |
| | | | | | | | | | | | |
Provision for credit losses (excluding bulk sale) | | $ | 19,427 | | | $ | 16,410 | | | $ | 13,413 | |
Percentage of average finance receivables (annualized) | | | 11.0 | % | | | 9.7 | % | | | 8.7 | % |
Percentage of total revenue | | | 30.3 | % | | | 26.3 | % | | | 23.7 | % |
| | | |
General and administrative expenses | | $ | 28,826 | | | $ | 30,453 | | | $ | 28,550 | |
Percentage of average finance receivables (annualized) | | | 16.3 | % | | | 18.1 | % | | | 18.6 | % |
Percentage of total revenue | | | 45.0 | % | | | 48.7 | % | | | 50.4 | % |
| | | |
Same store results: | | | | | | | | | | | | |
Finance receivables atperiod-end | | $ | 697,004 | | | $ | 676,931 | | | $ | 609,294 | |
Finance receivable growth rate | | | 11.0 | % | | | 12.7 | % | | | 11.6 | % |
Number of branches in calculation | | | 321 | | | | 315 | | | | 296 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Finance Receivables by Product | |
| | | 4Q’16 | | | 3Q’16 | | | QoQ $
Inc (Dec) | | | QoQ %
Inc (Dec) | | | 4Q’15 | | | YoY $
Inc (Dec) | | | YoY %
Inc (Dec) | |
Small loans | | $ | 358,471 | | | $ | 349,390 | | | $ | 9,081 | | | | 2.6 | % | | $ | 338,157 | | | $ | 20,314 | | | | 6.0 | % |
Large loans | | | 235,349 | | | | 217,102 | | | | 18,247 | | | | 8.4 | % | | | 146,553 | | | | 88,796 | | | | 60.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total core loans | | | 593,820 | | | | 566,492 | | | | 27,328 | | | | 4.8 | % | | | 484,710 | | | | 109,110 | | | | 22.5 | % |
Automobile loans | | | 90,432 | | | | 97,141 | | | | (6,709 | ) | | | (6.9 | )% | | | 116,109 | | | | (25,677 | ) | | | (22.1 | )% |
Retail loans | | | 33,523 | | | | 32,516 | | | | 1,007 | | | | 3.1 | % | | | 27,625 | | | | 5,898 | | | | 21.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total finance receivables | | $ | 717,775 | | | $ | 696,149 | | | $ | 21,626 | | | | 3.1 | % | | $ | 628,444 | | | $ | 89,331 | | | | 14.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of branches at period end | | | 339 | | | | 338 | | | | 1 | | | | 0.3 | % | | | 331 | | | | 8 | | | | 2.4 | % |
Average finance receivables per branch | | $ | 2,117 | | | $ | 2,060 | | | $ | 57 | | | | 2.8 | % | | $ | 1,899 | | | $ | 218 | | | | 11.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
10
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Contractual Delinquency by Aging | |
| | | 4Q’16 | | | 3Q’16 | | | 4Q’15 | |
Allowance for credit losses | | $ | 41,250 | | | | 5.7 | % | | $ | 39,100 | | | | 5.6 | % | | $ | 37,452 | | | | 6.0 | % |
| | | | | | |
Current | | | 587,202 | | | | 81.9 | % | | | 569,412 | | | | 81.8 | % | | | 500,591 | | | | 79.7 | % |
1 to 29 days past due | | | 77,106 | | | | 10.7 | % | | | 77,097 | | | | 11.1 | % | | | 82,589 | | | | 13.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Delinquent accounts: | | | | | | | | | | | | | | | | | | | | | | | | |
30 to 59 days | | | 16,727 | | | | 2.3 | % | | | 17,323 | | | | 2.4 | % | | | 15,654 | | | | 2.5 | % |
60 to 89 days | | | 11,641 | | | | 1.6 | % | | | 10,966 | | | | 1.6 | % | | | 9,858 | | | | 1.6 | % |
90 to 119 days | | | 10,021 | | | | 1.4 | % | | | 8,363 | | | | 1.3 | % | | | 7,696 | | | | 1.1 | % |
120 to 149 days | | | 8,205 | | | | 1.1 | % | | | 7,215 | | | | 1.0 | % | | | 6,678 | | | | 1.1 | % |
150 to 179 days | | | 6,873 | | | | 1.0 | % | | | 5,773 | | | | 0.8 | % | | | 5,378 | | | | 0.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total contractual delinquency | | $ | 53,467 | | | | 7.4 | % | | $ | 49,640 | | | | 7.1 | % | | $ | 45,264 | | | | 7.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total finance receivables | | $ | 717,775 | | | | 100.0 | % | | $ | 696,149 | | | | 100.0 | % | | $ | 628,444 | | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
1 day and over past due | | $ | 130,573 | | | | 18.1 | % | | $ | 126,737 | | | | 18.2 | % | | $ | 127,853 | | | | 20.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Contractual Delinquency by Product | |
| | | 4Q’16 | | | 3Q’16 | | | 4Q’15 | |
Small loans | | $ | 32,955 | | | | 9.2 | % | | $ | 30,169 | | | | 8.6 | % | | $ | 30,185 | | | | 8.9 | % |
Large loans | | | 12,114 | | | | 5.1 | % | | | 10,142 | | | | 4.7 | % | | | 4,945 | | | | 3.4 | % |
Automobile loans | | | 6,300 | | | | 7.0 | % | | | 7,459 | | | | 7.7 | % | | | 8,713 | | | | 7.5 | % |
Retail loans | | | 2,098 | | | | 6.3 | % | | | 1,870 | | | | 5.8 | % | | | 1,421 | | | | 5.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total contractual delinquency | | $ | 53,467 | | | | 7.4 | % | | $ | 49,640 | | | | 7.1 | % | | $ | 45,264 | | | | 7.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
11
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarterly Trend | |
| | | 4Q’15 | | | 1Q’16 | | | 2Q’16 | | | 3Q’16 | | | 4Q’16 | | | QoQ $
B(W) | | | YoY $
B(W) | |
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and fee income | | $ | 51,320 | | | $ | 51,300 | | | $ | 52,589 | | | $ | 57,420 | | | $ | 59,654 | | | $ | 2,234 | | | $ | 8,334 | |
Insurance income, net | | | 2,838 | | | | 2,939 | | | | 2,601 | | | | 2,346 | | | | 1,570 | | | | (776 | ) | | | (1,268 | ) |
Other income | | | 2,527 | | | | 2,458 | | | | 2,135 | | | | 2,709 | | | | 2,797 | | | | 88 | | | | 270 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | 56,685 | | | | 56,697 | | | | 57,325 | | | | 62,475 | | | | 64,021 | | | | 1,546 | | | | 7,336 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision for credit losses | | | 11,449 | | | | 13,791 | | | | 13,386 | | | | 16,410 | | | | 19,427 | | | | (3,017 | ) | | | (7,978 | ) |
| | | | | | | |
Personnel | | | 17,283 | | | | 17,127 | | | | 16,674 | | | | 18,180 | | | | 16,998 | | | | 1,182 | | | | 285 | |
Occupancy | | | 4,522 | | | | 4,863 | | | | 4,770 | | | | 5,175 | | | | 5,251 | | | | (76 | ) | | | (729 | ) |
Marketing | | | 1,403 | | | | 1,515 | | | | 2,062 | | | | 1,786 | | | | 1,474 | | | | 312 | | | | (71 | ) |
Other | | | 5,342 | | | | 6,300 | | | | 6,042 | | | | 5,312 | | | | 5,103 | | | | 209 | | | | 239 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total general and administrative | | | 28,550 | | | | 29,805 | | | | 29,548 | | | | 30,453 | | | | 28,826 | | | | 1,627 | | | | (276 | ) |
| | | | | | | |
Interest expense | | | 4,350 | | | | 4,710 | | | | 4,811 | | | | 5,116 | | | | 5,287 | | | | (171 | ) | | | (937 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 12,336 | | | | 8,391 | | | | 9,580 | | | | 10,496 | | | | 10,481 | | | | (15 | ) | | | (1,855 | ) |
Income taxes | | | 4,969 | | | | 3,215 | | | | 3,668 | | | | 4,020 | | | | 4,014 | | | | 6 | | | | 955 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 7,367 | | | $ | 5,176 | | | $ | 5,912 | | | $ | 6,476 | | | $ | 6,467 | | | $ | (9 | ) | | $ | (900 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income per common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.57 | | | $ | 0.41 | | | $ | 0.50 | | | $ | 0.57 | | | $ | 0.57 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted | | $ | 0.56 | | | $ | 0.40 | | | $ | 0.49 | | | $ | 0.56 | | | $ | 0.55 | | | $ | (0.01 | ) | | $ | (0.01 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted-average shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 12,891 | | | | 12,756 | | | | 11,756 | | | | 11,384 | | | | 11,408 | | | | (24 | ) | | | 1,483 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted | | | 13,105 | | | | 12,949 | | | | 11,974 | | | | 11,664 | | | | 11,763 | | | | (99 | ) | | | 1,342 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | $ | 52,335 | | | $ | 51,987 | | | $ | 52,514 | | | $ | 57,359 | | | $ | 58,734 | | | $ | 1,375 | | | $ | 6,399 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net credit margin | | $ | 40,886 | | | $ | 38,196 | | | $ | 39,128 | | | $ | 40,949 | | | $ | 39,307 | | | $ | (1,642 | ) | | $ | (1,579 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | 4Q’15 | | | 1Q’16 | | | 2Q’16 | | | 3Q’16 | | | 4Q’16 | | | QoQ $
Inc (Dec) | | | YoY $
Inc (Dec) | |
Total assets | | $ | 626,373 | | | $ | 609,707 | | | $ | 642,803 | | | $ | 691,329 | | | $ | 712,224 | | | $ | 20,895 | | | $ | 85,851 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Finance receivables | | $ | 628,444 | | | $ | 607,363 | | | $ | 645,744 | | | $ | 696,149 | | | $ | 717,775 | | | $ | 21,626 | | | $ | 89,331 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for credit losses | | $ | 37,452 | | | $ | 36,230 | | | $ | 36,200 | | | $ | 39,100 | | | $ | 41,250 | | | $ | 2,150 | | | $ | 3,798 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long-term debt | | $ | 411,177 | | | $ | 396,543 | | | $ | 441,147 | | | $ | 481,766 | | | $ | 491,678 | | | $ | 9,912 | | | $ | 80,501 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
12
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | FTE Headcount Trend (1) | |
| | | 4Q’15 | | | 1Q’16 | | | 2Q’16 | | | 3Q’16 | | | 4Q’16 | | | QoQ
Inc (Dec) | | | YoY
Inc (Dec) | |
Legacy operations headcount | | | 1,350 | | | | 1,270 | | | | 1,217 | | | | 1,224 | | | | 1,221 | | | | (3 | ) | | | (129 | ) |
2016 new branch headcount | | | | | | | 17 | | | | 17 | | | | 17 | | | | 18 | | | | 1 | | | | 18 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total operations headcount | | | 1,350 | | | | 1,287 | | | | 1,234 | | | | 1,241 | | | | 1,239 | | | | (2 | ) | | | (111 | ) |
Home office headcount | | | 95 | | | | 100 | | | | 105 | | | | 104 | | | | 103 | | | | (1 | ) | | | 8 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total headcount | | | 1,445 | | | | 1,387 | | | | 1,339 | | | | 1,345 | | | | 1,342 | | | | (3 | ) | | | (103 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of branches | | | 331 | | | | 339 | | | | 338 | | | | 338 | | | | 339 | | | | 1 | | | | 8 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Based on 40 hours per week full-time equivalent |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | General & Administrative Expenses Trend | |
| | | 4Q’15 | | | 1Q’16 | | | 2Q’16 | | | 3Q’16 | | | 4Q’16 | | | QoQ $
B(W) | | | YoY $
B(W) | |
Legacy operations expenses | | $ | 19,542 | | | $ | 19,665 | | | $ | 17,511 | | | $ | 18,946 | | | $ | 18,197 | | | $ | 749 | | | $ | 1,345 | |
2016 new branch expenses | | | | | | | 548 | | | | 606 | | | | 619 | | | | 652 | | | | (33 | ) | | | (652 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total operations expenses | | | 19,542 | | | | 20,213 | | | | 18,117 | | | | 19,565 | | | | 18,849 | | | | 716 | | | | 693 | |
Marketing expenses | | | 1,403 | | | | 1,515 | | | | 2,062 | | | | 1,786 | | | | 1,474 | | | | 312 | | | | (71 | ) |
Home office expenses | | | 7,605 | | | | 8,077 | | | | 9,369 | | | | 9,102 | | | | 8,503 | | | | 599 | | | | (898 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total G&A expenses | | $ | 28,550 | | | $ | 29,805 | | | $ | 29,548 | | | $ | 30,453 | | | $ | 28,826 | | | $ | 1,627 | | | $ | (276 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Averages and Yields | |
| | | YTD’16 | | | YTD’15 | |
| | | Average Finance
Receivables | | | Average Yield | | | Average Finance
Receivables | | | Average Yield | |
Small loans | | $ | 334,152 | | | | 42.5 | % | | $ | 316,945 | | | | 43.9 | % |
Large loans | | | 190,855 | | | | 28.8 | % | | | 93,243 | | | | 27.6 | % |
Automobile loans | | | 102,023 | | | | 17.7 | % | | | 137,249 | | | | 19.0 | % |
Retail loans | | | 30,321 | | | | 19.2 | % | | | 25,392 | | | | 18.8 | % |
| | | | | | | | | | | | | | | | |
Total interest and fee yield | | $ | 657,351 | | | | 33.6 | % | | $ | 572,829 | | | | 34.2 | % |
| | | | | | | | | | | | | | | | |
Total revenue yield | | $ | 657,351 | | | | 36.6 | % | | $ | 572,829 | | | | 37.9 | % |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | Components of Increase in Interest and Fee Income
YTD’16 Compared to YTD’15
Increase (Decrease) | |
| | | Volume | | | Rate | | | Net | |
Small loans | | $ | 7,406 | | | $ | (4,546 | ) | | $ | 2,860 | |
Large loans | | | 28,073 | | | | 1,186 | | | | 29,259 | |
Automobile loans | | | (6,339 | ) | | | (1,641 | ) | | | (7,980 | ) |
Retail loans | | | 943 | | | | 87 | | | | 1,030 | |
| | | | | | | | | | | | |
Total increase (decrease) in interest and fee income | | $ | 30,083 | | | $ | (4,914 | ) | | $ | 25,169 | |
| | | | | | | | | | | | |
13
| | | | | | | | | | | | | | | | |
| | | Net Loans Originated (1) | |
| | | YTD’16 | | | YTD’15 | | | YTD $
Inc (Dec) | | | YTD %
Inc (Dec) | |
Small loans | | $ | 580,936 | | | $ | 592,211 | | | $ | (11,275 | ) | | | (1.9 | )% |
Large loans | | | 250,862 | | | | 173,560 | | | | 77,302 | | | | 44.5 | % |
Automobile loans | | | 37,038 | | | | 41,621 | | | | (4,583 | ) | | | (11.0 | )% |
Retail loans | | | 34,629 | | | | 31,710 | | | | 2,919 | | | | 9.2 | % |
| | | | | | | | | | | | | | | | |
Total net loans originated | | $ | 903,465 | | | $ | 839,102 | | | $ | 64,363 | | | | 7.7 | % |
| | | | | | | | | | | | | | | | |
| (1) | Represents the balance of loan origination and refinancing net of unearned finance charges |
| | | | | | | | |
| | | Other Key Metrics | |
| | | YTD’16 | | | YTD’15 | |
Net credit losses | | $ | 59,216 | | | $ | 50,407 | |
Percentage of average finance receivables | | | 9.0 | % | | | 8.8 | % |
Bulk sale | | | — | | | | 1,964 | |
| | | | | | | | |
Net credit losses (excluding bulk sale) | | $ | 59,216 | | | $ | 52,371 | |
Percentage of average finance receivables | | | 9.0 | % | | | 9.1 | % |
| | |
Provision for credit losses | | $ | 63,014 | | | $ | 47,348 | |
Bulk sale | | | — | | | | 1,964 | |
| | | | | | | | |
Provision for credit losses (excluding bulk sale) | | $ | 63,014 | | | $ | 49,312 | |
Percentage of average finance receivables | | | 9.6 | % | | | 8.6 | % |
Percentage of total revenue | | | 26.2 | % | | | 22.7 | % |
| | |
General and administrative expenses | | $ | 118,632 | | | $ | 115,598 | |
Percentage of average finance receivables | | | 18.0 | % | | | 20.2 | % |
Percentage of total revenue | | | 49.3 | % | | | 53.2 | % |
14
Because it adjusts for certainnon-operating andnon-cash items, the Company believes thatnon-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 | |
| | | 4Q‘16 | | | Adjustments(1) | | | Non-GAAP | |
General and administrative expenses | | $ | 28,826 | | | $ | (153 | ) | | $ | 28,673 | |
Income taxes | | $ | 4,014 | | | $ | 59 | | | $ | 4,073 | |
Net income | | $ | 6,467 | | | $ | 94 | | | $ | 6,561 | |
Diluted net income per common share | | $ | 0.55 | | | $ | 0.01 | | | $ | 0.56 | |
| |
| | | Non-GAAP Reconciliation | |
| | | 4Q‘15 | | | Adjustments(1) | | | Non-GAAP | |
General and administrative expenses | | $ | 28,550 | | | $ | (180 | ) | | $ | 28,370 | |
Provision for credit losses | | $ | 11,449 | | | $ | 1,964 | | | $ | 13,413 | |
Income taxes | | $ | 4,969 | | | $ | (678 | ) | | $ | 4,291 | |
Net income | | $ | 7,367 | | | $ | (1,106 | ) | | $ | 6,261 | |
Diluted net income per common share | | $ | 0.56 | | | $ | (0.08 | ) | | $ | 0.48 | |
| | | | | | | | | | | | |
| | | Non-GAAP Reconciliation | |
| | | YTD’16 | | | Adjustments(1) | | | Non-GAAP | |
General and administrative expenses | | $ | 118,632 | | | $ | (1,593 | ) | | $ | 117,039 | |
Income taxes | | $ | 14,917 | | | $ | 610 | | | $ | 15,527 | |
Net income | | $ | 24,031 | | | $ | 983 | | | $ | 25,014 | |
Diluted net income per common share | | $ | 1.99 | | | $ | 0.08 | | | $ | 2.07 | |
| |
| | | Non-GAAP Reconciliation | |
| | | YTD’15 | | | Adjustments(1) | | | Non-GAAP | |
General and administrative expenses | | $ | 115,598 | | | $ | (2,856 | ) | | $ | 112,742 | |
Provision for credit losses | | $ | 47,348 | | | $ | 1,964 | | | $ | 49,312 | |
Income taxes | | $ | 14,774 | | | $ | 339 | | | $ | 15,113 | |
Net income | | $ | 23,365 | | | $ | 553 | | | $ | 23,918 | |
Diluted net income per common share | | $ | 1.79 | | | $ | 0.04 | | | $ | 1.83 | |
| (1) | Non-GAAP adjustment details are listed below |
| | | | | | | | | | | | | | | | |
| | | Non-GAAP Adjustments | |
| | | 4Q’16 | | | 4Q’15 | | | YTD’16 | | | YTD’15 | |
Loan system conversion | | $ | 153 | | | $ | 180 | | | $ | 1,593 | | | $ | 793 | |
Bulk sale | | | — | | | | (1,964 | ) | | | — | | | | (1,964 | ) |
Executive retirement | | | — | | | | — | | | | — | | | | 533 | |
CEO stock award | | | — | | | | — | | | | — | | | | 1,530 | |
| | | | | | | | | | | | | | | | |
Total adjustments | | $ | 153 | | | $ | (1,784 | ) | | $ | 1,593 | | | $ | 892 | |
Tax effect of adjustments | | | (59 | ) | | | 678 | | | | (610 | ) | | | (339 | ) |
| | | | | | | | | | | | | | | | |
Adjustment to net income | | $ | 94 | | | $ | (1,106 | ) | | $ | 983 | | | $ | 553 | |
| | | | | | | | | | | | | | | | |
Adjustment to diluted net income per common share | | $ | 0.01 | | | $ | (0.08 | ) | | $ | 0.08 | | | $ | 0.04 | |
| | | | | | | | | | | | | | | | |
15
