RM - Earnings call transcript Q2 2021 | Regional Management Corp.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Regional Management Corp.

Second Quarter 2021 Earnings Call.

As a reminder, all participants are in a listen-only mode and the conference is being recorded. will opportunity there ask presentation, the be to an questions. After Instructions]. [Operator now I the conference to over turn would like to Mr. Garrett Edson, ICR. sir. Please ahead, go

Garrett Edson

Thank Web and By to afternoon. call and released you should found this regionalmanagement.com. and access on be have our prior now, to our at presentation, supplemental everyone announcement may which site was earnings good

earnings introduce subject statements and to would assumptions, at our of can results which and to will President projections undue and you uncertainties prospects. I them. statements are be financial X SEC to future Regional that now of Page could presentation site expressed risks factors financial certain are we Before contains reliance financial not not disclosures announcement refer differ our the uncertainties, business difficult A Management CEO of our of measures forward-looking all of detailed of various today that Beck, you of We forward-looking important direct GAAP measures. Corp. and reconciliation discussion in other performance, operating our discussion those of begin condition regionalmanagement.com. from use like Corp. estimates, more for These and to and Also, should based or measure you actual company's only results These our statements, non-GAAP may most recent formal filings therefore implied today references within statements forward-looking presentation, to to management's and Web and the the to concerning and cause Part place and posted measures. are the release, press include earnings and Regional future or forward-looking that to supplemental the as current Rob materially the our may upon and include expectations, on with could of non-GAAP which predict, speak remarks, risks, performance presentation, and the Management these statements on I of discussion future our found about our comparable guarantees impact today are forward-looking statements.

Rob Beck

XXXX welcome Harp today joined to Rana, Officer. our our Financial Thanks, I'm second quarter Garrett, earnings Chief call. and by

of to ROE. XX.X%, revenue, or quarterly all-time an Our double business our to $X.XX strong continued second Record all revenue. in which net in high digit X.X% respectively. quarterly average and and in fire of of We cylinders sequential on EPS, return a income generated turn diluted We XX.X experienced quarter to which highs, the and of XX.X% were year-over-year our portfolio returns in XX.X% quarter. net ROA receivables the receivables million ending impressive posted up net and with drove growth $XX growth ending record million

continue to prior fell the the from quarter rate strategy the X.X%, market. market basis long-term near-prime of period. results efficacy as loss strength year our At quarter dropped growth rate the the a X.X%, a of capture delinquency our point during our XXX outpaced our credit to broader time, net execution. of and XX-plus We day These team's improvement validate and share the low end our once same historical to again

development strategic including to continue and expansion recent geographic Our product initiatives, considerable channel investments in growth, and bear digital fruit.

with was XX from $XX growth record loans, the million XXX the half second or quarter, than new growth occurring million originated sequentially which grew more Our X% of million initiatives. derived in a We June. of core our of portfolio in

up X% second compared The impacted quarter last second quarter pandemic double XXXX. the of volume was year's more and than to quarter

the second sourced last out prequalification rates. digitally We levels originations driving already million year. than it's more from first digital increased last roll to experience had quarter, improved in digital double and dramatically record continued We and booking our of quarter quarter, up XX

New represented total digital volumes on borrower new XXX, of originated our loans. average last originated FICO The volume. with XX.X% our large XX% digital as volumes quarter was

deployment all the we and new of with the complete this new will integrate digital quarter, existing new and experience states to prequalification ahead. our to the the in our and of will We generators lead functionality affiliates continue months

begin offer product customer's new Later offers customer new the addition, of roll In and mobile an year, will testing online to an our online end-to-end this product funding and check remain fulfillment have in alternative XXXX. a portal existing to pace is improved begun with and we loan and bank loan testing a part we for origination guaranteed out account. on app product, convenience our our customers, ACH digital which we into early

auto has gain loan larger of to of as now traction to rolled product yesterday. we've the new also Our out our as secured begun all states product

In financing this products. their including expansion, July, five loan Ashley lending for and levels. there is believe locations service for underwriting and this our tripling of we to all need to stores on number renewed We focus late substantial a addition, a installment fully retail loan cross-sell industry-best XX sub-prime in franchisee. a options, while Homestore maintaining With we other are and near-prime across opportunities our we allowing opportunity product, us automation borrowers to via fulfill retail franchisee better our relationship large expanded the point-of-sale states, serve with

product important our our Beyond and digital we footprint. strides continue geographic investments, expanding in optimizing channel make and to

and time as receivables and months. X.X quarter, new tremendous branch branches three next the the in months, X.X half weeks. grab results and to that our an These is us states two in to share. Illinois demonstrate rapidly when which surpassed average just four in in receivables, branch first after a exceeded reach that a market XX XXX,XXX historical consider million in million of we has opportunities you await impressive The expand receivables only entered During our new is we average

XX in roughly branches new to XXXX across open network. we plan As a our reminder,

the in and branches an year digital the to states to branch to and end able additional operating geographic broader two higher expect six of new for a reach, We branches, four to Thanks per XXXX. resulting states also in in enter will fewer one additional new which leverage. initiatives, maintain by to greater drive our receivables these be will the the need average expect we states

the accounts. remained the payments best even finance billion With demand company's net momentum. nearly quarter first as half X.X began the half entered our Child throughout third behind with We Tax with Loan of hit bank began July, us, receivables. has strong we to in Credit history considerable second

loan and for top in strong in economy XXXX. of the the recover, portfolio line driving for increase year to We our the balance as the demand growth expect products will that coming continues and months

strong yield well continue are positioned as to We gain our strategic market share to returns. investments

of our a deal July, loan robust of a by our on is we of time this our strengthened portfolio. business, term has growth and closing remain maintaining on X.X%. we further our securitization protecting our focused balance sheet five-year latest In During liquidity in credit quality coupon first the with another and weighted position ABS This transaction. average

X.X%. end fixed XXX liquidity carries capacity end million million with outstanding ranging available XXX of a of July, rate interest unused and of from As million had at over a Of in of coupons million. our weighted the over debt we of X.X% XXX XXX to average July, the

XXX of we're rise. to XX maintained our in with strike debt. XX of caps protected well covering variable rates interest In and positioned should to future We XXX million million interest points, fund also growth, well basis rate rate sum, we're rates

in historically a had superior maintain also profile. continue to in ended allowance credit expected XX-plus low rate. growth. the we further improvement delinquencies, us quarter, quarter turn, we with by delinquency contributed XXX,XXX our credit a another to rate net enabled This, credit despite modest quarter record Though a and reduce day to losses in in second We our for loss uptick the portfolio

reserve losses our XX.X%, quarter a allowance of last from the end the As down was result, rate at for quarter. XX.X% credit

Our associated reserve XXX continues with and our quite to day to for contractual million of delinquency an allowance XX favorably losses XX XX for credit compare additional of COVID-XX. includes XX-plus million, credit losses million as June

of standards our pandemic. we following had XXXX, the approximately originated April majority the was of of onset XX% been which total of that As the vast deployed subject credit enhanced XX, June portfolio since to

changes performance anticipate to be gradually rate and historically In between we to XXXX. our into of that We delinquencies, will significant our will that ahead, XXXX macroeconomic the light X%. normalize year remain credit X.X%, months our delinquency low rate over next current and environment. XXXX XXXX NCO should full the NCO any roughly strong X% throughout now absent Looking expect and in XX be rate our

new XX.X%. normalizes to in normalize growth, million reflects that circumstances light net have reserve the grow, conditions. an the of progress expectation XXXX levels end throughout rate presented the even no of the a accounting current credit to for and we that anticipate earned to portfolio million, outlook change that loss between reserve will the expect allowance by half Having receivable we the and year the under our losses of net due material allowance by year year, first losses unique of robust In around assuming as income of pandemic the half this $XX outlook. increase build XX expect second year, XXXX levels the standard, will our generate to $XX million This of full economic year the we elected the credit CECL provide our only credit pre-pandemic for for income will we to year. though year full rate roughly we in continues As we to XX.X% the pre-pandemic as of to provisioning

from the as to to we expenses invest power amount Based under our million continue initiatives, in digital in $XX increase increased as million. our to approved and million expect repurchase including of in our lending. our marketing our $XX has confidence growth current stock the the on to a increase our in earnings our also Board $XX expenses half SG&A We expand continue program we second business, value authorized

remain omni-channel the invest expansion, products and we and We'll continue we've geographic forward, to new growth digital initiatives, our strategic on course firmly channels. innovation, charted. move we As in

capital a value to be provide Regional for additional want our the I forward. long-term prime color And couldn't create they've continued position we entire for now the I and call of our continue over prouder grow remain a to and sharp excess will credit our and healthy portfolio providing our and on and path We a We fully quality our balance our best-in-class and which customers experience by share to our allow focus growth shareholders. to committed their on the team to will customers, to thank our fund to Harp sheet, produced. shareholders. I'll results efforts. turn maintain return sustainable to we'll market continue to us be in a to our team financials.

Harp Rana

Rob, you, hello, Thank and everyone.

you Let share income through million in supplemental and quarter take me generated XX.X earnings diluted Page our per we detail. results quarter of X financial of the highlights. second On presentation, more net our second our from provide resulting initiatives, last quarter, the $X.XX that operating of We our growth and a for expenses, costs of we funding income, in million generated stable credit. allowance lower credit our net decrease losses. underlying inclusive momentum To consider XX.X million in highlight business, strong of XX.X

XX.X quarter ROE inclusive of ROE and and generated and we only returns, XX.X% with this business of produced The quarter, allowance. XXX,XXX This in midyear. a ROA X.X% income, decrease net ROA strong X.X% our through million XX.X%

up strong While returns to drive to our benign ability our continues a our by aided pick generate line credit bottom were revenue to environment, and steam. returns

mail illustrated to originations of on more the branches. year-over-year quarter XXX in were Meanwhile, year, pandemic million. the we branch than above due to As well second in we prior and part originating million ended as loans our direct X, the Page digital tripled XXX originations

to XXX XX and drove originations growth originations. were quarter of million, million second displays new We efforts. successfully trends and prior doubling XX from marketing as XXXX. from XXX year a closed new receivables than period total quarter million prior than quarter the growth mix with Notably, the the billion, X.X execute through million quarter initiatives and we of on June Our the growth prior and X% our higher Page of year up the XX. record X our continue more second period net portfolio our initiatives finance

X% million expand continue as quarter-over-quarter. or grew market prior versus XX XX% Our XXX quarter and loan increased to of the loans year or grew portfolio first while XX% small from prior XXXX, the quarter million from our share. we the X% Large core loans

of X, For we the headwinds growth our the for to portfolio Child customers testament another the and quarter. in a Page third our see demand solid through our the third some needs quarter, Overall, digitally-sourced we and finance new originations, which we in to On were show us XX.X% watermark meet remain total Credit the Tax potential them to ability quarter, further of our strategy. expect in from volume our expect high serve payment. healthy second receivables omni-channel our with to quarter-over-quarter

quarter, the During large originations. second were loans digitally-sourced of our XX%

and revenue overall Total mix and customers, the government XX to X. revenue the yield Interest credit and fee underwriting interest XXX year-over-year, performance points, across Page our of quality stimulus, to towards primarily tightened seasonality. and and Sequentially, resulting fewer respectively, loans XX reversals. portfolio XX% due fee and basis shift grew basis XX.X and status interest Turning fewer result a higher during to accrual yield points yield in credit total performance non-accrual to increased improved credit as due pandemic, and increased million.

basis lower continued fee to and be XX% interest of the be shift than XX, toward we of at below to yield loans. yield XX%. mix an third second had due June the approximately larger points revenue our portfolio APR were portfolio XX and quarter, our expect large our quarter, to our lower loans In XX% of or XX points basis total in As approximately

Moving to X. Page

rate delinquency year-over-year, basis credit low loss losses from a impact X.X% historically credit Net also XX quarter, points the delinquencies at economic and first low of the down conditions XXX our improvement point remained improving net for stimulus, was quarter Our were the to government due levels. basis levels. while

our Page and net approximately X. Flipping underwriting impact credit and historically including the year quality will strong, thanks our tightening be government loss X%. during full of performance rate the pandemic, of quality to adaptability of criteria, our remains that custom The to the portfolio of expect stimulus. We our scorecards appropriate credit the

XX. year, points Our basis-point XX prior basis of lower XX-plus notably the XX as improvement March XXX was day delinquency X.X%, from June level and than

XX expect gradually levels over normalized Moving delinquencies of the to months. day XX-plus forward, the June rise next we more toward off loan

finance Turning first to credit the or an net XXX.X with of ended receivables. allowance million for Page quarter XX. We of losses XX.X%

strong COVID-XX of the a support decrease During receivables. X.X This $XXX,XXX of X.X release due base second to reserve improving to build of our to portfolio decreased million economic XXXX, quarter XX.X% million included net growth of a by reserve finance the conditions. allowance and

support continue this growth. to a build we reserves As grows, reminder, as additional our portfolio will new to

assumptions, and assumption XXXX. will duration we've an rate With under that the the the end reduced improving the economy, at the be unemployment severity macro X% of our including of

to to We reflect continues will macro continue review to economy these changing the conditions assumptions every rebound. quarter as

Our $XXX.X for contractual losses our to day XX-plus of as million. of to credit June XX.X XX continues favorably million delinquency very allowance compare

sequential G&A new approximately in omni-channel digital into from X.X invest part quarter million, marketing sustainable increased to as we second channels the in by operating term. activities. drive new the third second XX year the strategy. growth confident XX.X% quarter expenses continue and levels leverage appropriately a new to additional pandemic-impacted from to We initiatives XXXX and Flipping growth reserved. our as of million as for G&A we over basis, and or expect XX. our be products are our XX.X On we remain longer normalized quarter Overall, expense million Page to driven well investment that capabilities, expenses X.X expansion geographic marketing for up rose improved million, our were in states our driven XXXX the G&A period, prior by and

and rate million. costs improved rates recent variable million of to net lower the was expense improvement have the end by rising cost point the of period. interest the than Turning protect improved our year finance caps X.X% as driven securitization year-over-year XX to transaction. in a and lower receivables. rate quarter interest We funding X.X XXXX second currently our XXX.X totaled Page from of $X.X funds million environment quarter prior The on million XXX debt, of which price of our the XX. was Interest was This of and in second against us average basis

one-month year at appreciated caps total in points, at the rate the of million interest strike rate have cap XX XX have We of XX to In over price value including second caps basis points. XX a price strike a interest a of past six $XXX,XXX. the a quarter LIBOR of purchased last by basis months, million XXX in range these

fluctuate, rates As caps will accordingly. interest mark-to-market the value rate of these value be

our Looking million. Page ahead, strong we of is expect the in interest a rate XX profile. funding third reminder to be quarter approximately expense XX

second Our debt X.X equity conservative funded quarter X. ratio to remained to a at

strong sheet loan continue balance in We loss very and maintain million with reserves. XXX low leverage to a

XX, capacity immediate credit XXX June million we availability unused unrestricted consisting of our facilities. cash XXX and of As our of had of to down draw facilities available credit million liquidity, on and

also million, enhanced our reduce with reminder, of average Wells used As we business. new lenders. securitization to fund growing approximately Suisse, our Fargo first be quarter, during at our facility warehouse capacity our our our X.XX%. transaction will and securitization, closing to to cost coupon million July, lenders, In three new facilities our XXX a roster a sixth five-year we of JPMorgan weighted the adding closed The capital of on XXX warehouse further of and Credit current and

tax during from was the in XX% year tax share-based XX% compared quarter the expected rate to period, prior second compensation. benefits Our better effective on than

August of expect dividend the $X.XX For dividend of for XX, as we second September effective close common record of to XXXX. on of Board approximately tax The XXXX the XX, on XX%. share shareholders a Directors declared paid XXXX, of The of rate of quarter will be company's third an half of has business per XXXX. the

stock repurchase million average price program of $XX.XX repurchased XXXX. May of In second quarter, addition, under per announced our our we at during stock weighted in share $XX common shares a XXX,XXX the

also additional an $XX.XX average total of of We share the price bringing $XX.XX a to in shares XXX,XXX a at repurchases per price through at weighted XX,XXX repurchased weighted July, under July. share average shares program per

mentioned earlier, million our we the $XX million increase pleased Rob under to million. a current Board that $XX As approved buyback from our in are amount authorized has announce $XX to program

be our I'll the over sheet concludes our remarks. our outstanding turn prospects We performance, growth. for continue pleased and to Rob. to And call back my balance now That robust extremely with

Rob Beck

In Harp. extremely far in Thanks, we summary, performing thus are well XXXX.

to and we led plan and year, initiatives operating model, let another six quarter first up. credit profile don't of Our and record-breaking growth the months new omni-channel superior a to excellent

to We key us will strategic positioning to our years come. to continue execute our for initiatives, on business sustainably grow

We and exciting interest. share questions. positioned on Thank the and the things you our up expand open as the have please for I'll well create we for call for you could Operator, to for many horizon Regional your value additional now market time our remain line? shareholders. again open

Operator

you. Thank

We session. Instructions]. will question-and-answer now the begin [Operator

from Scharf The Securities. question from David first JMP go Please comes ahead.

David Scharf

Thanks Hi. Good questions, for afternoon. taking Harp. Rob and my

is get landscape Thanks. the sort kind it's dominated just players. on kind it loan just since the by of if seemingly arrangement. to auto of wanted much potential of asset was very this also in ways. we've rebuild lot lot of terms that exiting First whether a little a It's out, always of lending for company of the Is a in out growth. went in large off, speak In you retail the of they way curious indicative the the sort mix. that And you sale our franchise forward? Ashley of another source surprising heard reengagement business. to or years of I can broader this a And sort point about a loans asset about competitive of of of Given going sense mind, retail been called hear to been because it

Rob Beck

for and did through bumped that we we Yes, sense business. stores David, strategic meetings to staff, lot We felt the Thanks that's a expand call. create were said one a and offering. We reevaluation were in investor were our allows with installment of of another we No, it's call growth their going of items, the up obviously working think and in to play improve channel, finance just do not of last it, attractiveness afternoon. along this for franchisees, business. third good great, us that ticket have a just but one space lending. partners, the XX of because opportunity and kind business $X,XXX not it, there in really XX has good renewing kind that from to more got here space we retail is about ticket able that couple I larger installment that of to a review retail work rapidly to that this stores of joining operate our margins, large some on acquired average the just a It's proactively existing we loans. that might us and good and where roughly the getting of a end the earlier into areas for we cost through of customers years. could And normal that

customer that good. relying branches. staff of profitability relying lifecycle our the on so again, stores. within And aren't we the those base is We're And on very

see we've of We reenergized it's area. nice an So area can think some where kind growth. we that

be takes split or lend it, $X,XXX takes to sweet Homestores. that, else ourselves $X,XXX of someone Synchrony or think they or and in than lend able of, is able the And $X,XXX call a then guess the spot where the one XXX lend to don't behind customer And wants $X,XXX you don't really people buy a I call what's second the other kind a attractive in higher In have furniture and what to ticket look Ashley case as to they that that do the I'll to what terms below most XXX tell even but the space. $X,XXX. piece of in Synchrony FICO. FICO to retailer they Synchrony We're we're competitors, is, of would of XXX

on offer to full financing able we're amount. Now the

attractive. we've product more done just there's a things lot so make to the And of

with will going lever in partner be states. we're future just so goes But it's four and pull. expansion. quarters. in share so excited new And the see total, five It we're to states to with this that we'll more And you this how another

David Scharf

Great. Thank you.

Operator

question comes John Please ahead. Rowan from next The go from Janney.

John Rowan

afternoon, you that guys the repeat guys. gave? Good Can guidance net you charge-off

Rob Beck

Yes, sure.

charge-off formerly for So for were the guidance net this X%. year, year; the an we at

to due That's year fact just and primarily really of had X.X% that delinquencies further at the we we just X.X%, will are NCO record X% X%. the range to it extended dropped giving be curve. the to the that that normalization lower second also for we To 'XX. in full it quarter, end, we've Now the low guidance for XXXX in

John Rowan

Okay, the all quarter? was in rate tax right. why low And so the

Harp Rana

So lower tax the due quarter in tax to from compensation. rate a the share-based benefit was

John Rowan

you. Thank right. all Okay,

Rob Beck

problem. No Thanks, John.

Operator

next The Bill go comes ahead. Capital. from Please Tieton Instructions]. [Operator Dezellem from question

Bill Dezellem

a Thank you basis that be this have different have do stay receivables now to small stable-ish? loan be you. Are of a will in you expectation? go-forward anticipating Or questions. flat, It A doesn't range? but couple on exactly roughly

Rob Beck

eked some and thanks we Bill, you good noticed quarter. out you joining. to in for small Yes, this growth speaking probably that loans

might up in the as I imagine, of you demand the year. impacted were It's it government million part across long rebound bit $XX the was versus sequentially. little loans prior the The think it portfolio. lower of stimulus, balance. a kind was small in That's And a time. first up by disproportionately time

able gets off. it big So somebody to check, pay a they're

still the think towards auto of loan as straight large product, think particularly growth. portfolio, mix in grow. I percentage a think add continue as will loan to we even is I a large the will going more But be So happen, going it to secured loans, what not but I the I line, anticipate the which book may on is move shift fuel small to and

Bill Dezellem

And bringing a me in loan the completely And or feeder out loans category loans the ask have spirit of you large really that. to customers. loan on faster loans. when first as actually stick the moving themselves thought the question should being as the that's started of were out, perception. small, with that number time, follow the -- asked Thank and proving that, moved customers and than into loan up small the of that the new on you. large small let and to were initially your out small I loan and of are new you now, the prior customers small some small customers you just thinking more was forward, or converting, If now we are going where number you growth to our converting look customers point the you small going that customers, for That of answer? that even we be large we had

Rob Beck

the And I up, look, for fuel, -- program the loans. direct origination Look, brings portfolio, see is That's larger as will, to picks our them a up. that with of the if you're car, check to what loan able think give rather source in competitor. we going auto or of losing continue graduation the No. which upmarket their predominantly now even the bigger small market to you the live further by top our we secured loan strategy mail have think product, will right? our than us allows But those loans, now also providing go that, be And we're in to pick where loan small customers loans. in of on that small growth the we to than would conversion customers will much have past a to large

the So just all of same I think part strategy. it's

direct Bill, look, And I talked new up go through a up. side, mail. into we the think picks pick state, geographically new just about the the states, we loan it small and we're other when is we will pace as into doing release, as expand economy the the primarily growth in of Illinois

we small them And so we direct mail, up. bring customers, graduate on then loan and these

guaranteed some out the more so growth. live check. initiative, sending we a initiatives And new states, you're to is as there, then, a except loan course, more of offer the no we've effectively longer that's going got And including as small enter which fuel loan same check,

get funds put offer. directly You're bank the account. guaranteed loan deposited Internet, offer go the to They they a the giving and in their somebody into code

we're feeder book, an there's because So grow channel. it is doing lot of to small loan a important that things

point I we're seeing demand. just inflection an think we rebound and impact wore kind hit in the pandemic of where off, the now

Bill Dezellem

Great. about record X.X away? Thank you. the first to helpful. Illinois? why time, That's Illinois, branch relative quite And or branch did million just question not record about one in What's then either different please completely but additional blew reach that receivables, that is

Rob Beck

past, from footprint. your existing the up doing select around three or to new new is go program, might wider radius and oftentimes want miles we a the branches that five be your or we much It now marketing in extended in were mail you where when the Part entering mailing So in away would reduced around of states your mail, branch. flags. of geographic very open branch. strategy plant markets, four direct you Through our mail to a

And so have. up the XX of thought or ends some can a being with a that a or maybe and Illinois state XX competitors cover the handful more process it like branches is we but couple not handfuls,

very I million each located at bit might leaving different they're And of effectively because were branches some branch of that had the period it, rate what a weeks. behind were happening parts up short tell ends footprint. in issue. first a pick that grow the effectively able And four two We in cap after that time. large branch, mail got a which a competitors X.X and were to able have the are we we because state to in little so states, area. the half up you We And of geographic in would

the I think on first as they're the same So pace branch.

footprint. happening $X average, are million. up will as branches, And have have of is, we around normally lighter what because call Those be people staff that. larger it, end states, branches new larger branch we so a to be much and grow which into efficient than we'll what more going by more is These on

Bill Dezellem

I the you. Thank Great. taking appreciate questions. you

Rob Beck

it, appreciate Bill. I

Operator

from The go Kyle next Joseph Jefferies. question ahead. from comes Please

Kyle Joseph

my Hi. questions. for Good Thanks afternoon. taking

quarter differences cadence of between and got away further the for on real the loan we curious Just and any growth kind stimulus? from June saw you April throughout

Rob Beck

Yes, great for question, and Kyle, thanks joining.

just month up And and see up up and in had in June, about build were a even originations. that XXXX the and June off saw originations you'll record actually striking bit actually So run XXXX. And originations the it most -- we April though build they a we million. $XXX on In originations double in in the were the quarter of supplement, month pre-pandemic in XXXX, XX%. up were of is versus what's X% and the even versus portfolio

well. peak we So acceleration throughout so really and quarter, saw an a nice really in really, hitting performed the June

is taking The other share. thing will I tell you we're

XXX up about or near-prime core So XX.X% in were million versus the loans They were was prior $XX And our down why space. market sequentially. or up year. X% million that's X% the

So we month stimulus after you momentum clearly, and picked impacted up impacted the April. tax strong as indicated, share. really saw We of

Kyle Joseph

Got it. for a up then me. Really follow helpful there. And

gave that on guys I I want third think got expense. the you G&A interest guidance for quarter just I right. to sure and make

your for think outlook million had then for interest I for expense. quarter, missed XX about I I G&A and third the

Harp Rana

quarter third million. the in expense interest expect to we be approximately So $XX

Kyle Joseph

that because into the ramps third? is -- Okay. quarter still just that in sorry, is that loan pretty there the it quickly weighted back second the was growth just And

Harp Rana

Yes. It volume because is definitely of increases. our

Kyle Joseph

for Got much Thanks questions. it. very answering my

Rob Beck

July, we was very in July curious days and really of just thing impact What seen a the Yes, a July which Child payments couple maybe little in came I'll will is a in, you probably is any from haven't Tax any how of a impact looks. a they more seen people is tell thing for add strong haven't note demand Credit, bit credit I probably standpoint. month. are Kyle, good from when But we one of

good So the front. on demand all

Kyle Joseph

answering one. That should you guys. a my Have Thanks, I good been it. next appreciate have Great. question.

Rob Beck

Kyle, care. right, take All

Operator

over I concludes turn like Mr. question-and-answer conference for any to to This the back session. remarks. would the Beck closing Rob

Rob Beck

Thanks, operator.

XX% from just And That's record innovation, nearly by or remain on digital and new originations. year. X.XXX XX products me as We initiatives. and I XXX million down quarter, we receivables year-on-year were growth up our the prior we geographic I had which by record in this. was did prior record do numerous tell team what said, in the have use every and channels, retail. had experience. to originations. of bit on omni-channel which an we on is record XX%. and up the little times. X% Let nearly client you focused Regional want expansion, elevating the It was I'll was conclude heard this what up was a a probably day, you about the focus And But market volume million, versus hit revenue digital We year. can We XX% word quarterly great all-time our high of billion, saying We

build I our our to joining we also better innovating as again And We to serve the everybody on team's and Take care. focused are forward. about thank excited are for well. the the things want just on we as we elevating And call. out We're capabilities. focus ability going prospects go customers,

Operator

This call. concludes today's conference

have your You may participating Thank lines. you disconnect a for and pleasant day.

Regional Management (RM) 8 Aug 212021 Q2 Earnings call transcript