Regional Management Corp (RM) 2023 Q3 法說會逐字稿

Thank you for standing by. This is the conference operator. Welcome to the Regional Management Third Quarter 2023 Earnings Conference Call. (Operator Instructions) And the conference is being recorded. (Operator Instructions)

謝謝你的支持。這是會議操作員。歡迎參加 2023 年第三季區域管理層收益電話會議。 （操作員指示）會議正在錄製中。 （操作員說明）

I would now like to turn the conference over to Garrett Edson with ICR. Please go ahead.

我現在想將會議轉交給 ICR 的 Garrett Edson。請繼續。

Thank you, and good afternoon. By now, everyone should have access to our earnings announcement and supplemental presentation, which were released prior to this call and may be found on our website at regionalmanagement.com. Before we begin our formal remarks, I will direct you to Page 2 of our supplemental presentation, which contains important disclosures concerning forward-looking statements and the use of non-GAAP financial measures.

謝謝你，下午好。到目前為止，每個人都應該可以訪問我們的收益公告和補充演示文稿，這些公告和補充演示文稿已在本次電話會議之前發布，並且可以在我們的網站 Regionalmanagement.com 上找到。在我們開始正式發言之前，我將引導您閱讀我們補充簡報的第二頁，其中包含有關前瞻性陳述和非公認會計準則財務指標使用的重要揭露。

Part of our discussion today may include forward-looking statements, which are based on management's current expectations, estimates and projections about the company's future financial performance and business prospects. These forward-looking statements speak only as of today and are subject to various assumptions, risks, uncertainties and other factors that are difficult to predict and that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These statements are not guarantees of future performance, and therefore, you should not place undue reliance upon them. We refer all of you to our press release, presentation and recent filings with the SEC for a more detailed discussion of our forward-looking statements and the risks and uncertainties that could impact our future operating results and financial condition.

我們今天討論的一部分可能包括前瞻性陳述，這些陳述是基於管理層目前對公司未來財務表現和業務前景的預期、估計和預測。這些前瞻性陳述僅代表今天的情況，並受到各種假設、風險、不確定性和其他難以預測的因素的影響，可能導致實際結果與前瞻性陳述中明示或暗示的結果有重大差異。這些聲明並不能保證未來的表現，因此，您不應過度依賴它們。我們請大家參閱我們的新聞稿、簡報和最近向美國證券交易委員會提交的文件，以更詳細地討論我們的前瞻性陳述以及可能影響我們未來經營業績和財務狀況的風險和不確定性。

Also, our discussion today may include references to certain non-GAAP measures. Reconciliation of these measures to the most comparable GAAP measure can be found within our earnings announcement or earnings presentation and posted on our website at regionalmanagement.com.

此外，我們今天的討論可能會提到某些非公認會計原則措施。這些指標與最具可比性的 GAAP 指標的調整可以在我們的收益公告或收益演示中找到，並發佈在我們的網站 Regionalmanagement.com 上。

I would now like to introduce Rob Beck, President and CEO of Regional Management Corp.

現在我想介紹一下區域管理公司總裁兼執行長 Rob Beck。

Thanks, Garrett, and welcome to our third quarter 2023 earnings call. I'm joined today by Harp Rana, our Chief Financial Officer. Harp and I will take you through our third quarter results, discuss the current operating environment and loan portfolio performance and share our expectations for the fourth quarter.

謝謝 Garrett，歡迎參加我們的 2023 年第三季財報電話會議。今天我們的財務長 Harp Rana 也加入了我的行列。 Harp 和我將向您介紹我們的第三季業績，討論當前的營運環境和貸款組合表現，並分享我們對第四季度的預期。

We continued our focus on portfolio quality, expense management and strong execution of our core business in the third quarter. We generated $8.8 million of net income and $0.91 of diluted EPS. Strong loan demand and our conservative underwriting criteria led to a high-quality portfolio growth of $62 million, record revenue of $141 million and a sequential increase in revenue yields of 80 basis points, all of which exceeded our expectations for the quarter. We also continue to closely manage our G&A expenses while investing in our business, driving a 50 basis point improvement in our operating expense ratio from the prior year. We're pleased with our team's ability to deliver consistent, predictable and superior results for our shareholders quarter after quarter.

第三季我們持續專注於投資組合品質、費用管理和核心業務的強勁執行。我們產生了 880 萬美元的淨利潤和 0.91 美元的稀釋每股收益。強勁的貸款需求和我們保守的承保標準導致優質投資組合增長 6,200 萬美元，創紀錄的收入達到 1.41 億美元，收入收益率環比增長 80 個基點，所有這些都超出了我們對本季度的預期。我們在投資業務的同時，也繼續密切管理一般及行政費用，使我們的營運費用率比前一年提高了 50 個基點。我們對我們的團隊能夠逐季為股東提供一致、可預測和卓越的業績感到滿意。

As you would expect, we're keeping a close eye on the economic environment and its impact on our consumer base. Recent data indicates a strong labor market, moderating inflation and real wage growth. However, we continue to observe stress in certain segments of our portfolio caused by inflationary pressures. We also remain mindful that the resumption of student loan repayments will impact many consumers' budgets, and we're monitoring whether recent geopolitical events may cause energy prices to increase further. As a result, we remain selective in making loans within our tightened credit box. While we achieved strong high-quality portfolio growth in the third quarter, we slowed our year-over-year growth rate to 9%, down from 22% in the third quarter of last year. We're prepared to lean back into growth when the economic conditions are right, but until then, we'll maintain a conservative credit posture.

正如您所料，我們正在密切關注經濟環境及其對我們消費者群的影響。最近的數據顯示勞動力市場強勁、通膨放緩和實質薪資成長。然而，我們繼續觀察到通膨壓力導致我們投資組合的某些部分面臨壓力。我們也仍然注意到，學生貸款償還的恢復將影響許多消費者的預算，我們正在監控最近的地緣政治事件是否可能導致能源價格進一步上漲。因此，我們仍然有選擇性地在緊縮的信貸框架內發放貸款。雖然我們在第三季實現了強勁的高品質投資組合成長，但我們將年成長率從去年第三季的 22% 降至 9%。我們準備在經濟條件合適時重新轉向成長，但在那之前，我們將保持保守的信貸態勢。

Our third quarter originations again reflected our selective underwriting. We originated 60% of our volume to our top 2 risk ranks. We continue to emphasize present farmer borrower lending over new borrower lending and we further grew our auto secured portfolio to 8.3% of our total loan portfolio, up from 6% a year ago. We're also seeing the benefit of the machine learning-driven credit and marketing models that we've implemented in recent quarters, and we see additional opportunity for improvement as we develop our next-generation models.

我們第三季的創收再次反映了我們的選擇性承保。我們 60% 的交易量源自於我們的前 2 名風險等級。我們繼續強調現有農民借款人貸款而不是新借款人貸款，並且我們進一步將汽車擔保投資組合增加到總貸款組合的 8.3%，高於一年前的 6%。我們還看到了最近幾季實施的機器學習驅動的信貸和行銷模型的好處，並且在開發下一代模型時我們看到了額外的改進機會。

We ended the third quarter with a 30-plus-day delinquency rate of 7.3%, up 40 basis points from the second quarter but consistent with normal seasonal trends. Our higher quality originations from credit tightening have kept our first payment default and early-stage delinquency rates below 2019 levels. Our July 1 payment default rate was 50 basis points better than July 2019 rate, and our third quarter 1- to 59-day delinquency rate was 110 basis points better than the third quarter of 2019.

截至第三季末，我們的 30 多天拖欠率為 7.3%，比第二季上升 40 個基點，但與正常的季節性趨勢一致。我們源自於信貸緊縮的更高品質，使我們的首次付款違約率和早期拖欠率低於 2019 年的水平。我們 7 月 1 日的付款違約率比 2019 年 7 月高 50 個基點，第三季 1 至 59 天的違約率比 2019 年第三季高 110 個基點。

Notably, we're seeing solid performance in fourth quarter 2022 and 2023 vintages. As of September 30, these vintages represent nearly 70% of our portfolio, a number that we expect to increase to nearly 80% by year-end. Macroeconomic conditions, however, have continued to stress mid- and late-stage delinquencies and loan rates, something that we've observed across our industry, particularly for loan vintages originated prior to late 2022. This is causing our delinquency levels and credit losses to be higher than we'd like. We anticipate that this stress will linger into at least the early part of 2024, but we continue to expect that credit tightening actions, strong collections execution and moderating inflation will gradually bring delinquencies and credit losses back down to more normalized levels over time, subject to the macroeconomic environment.

值得注意的是，我們在 2022 年第四季和 2023 年年份中看到了穩健的表現。截至 9 月 30 日，這些年份酒占我們投資組合的近 70%，我們預計到年底這一數字將增加到近 80%。然而，宏觀經濟狀況繼續對中後期拖欠和貸款利率造成壓力，這是我們在整個行業中觀察到的情況，特別是對於 2022 年底之前的貸款年份。這導致我們的拖欠水平和信貸損失比我們想要的要高。我們預計這種壓力至少會持續到2024 年初，但我們仍然預計，信貸緊縮行動、強有力的催收執行和溫和的通膨將隨著時間的推移逐漸使拖欠和信貸損失回落至更加正常化的水平，取決於宏觀經濟環境。

Looking ahead in the near to midterm, we'll navigate this challenging economic environment in much the same way that we have over the past year. We'll focus on strong execution of our core business, including by maintaining a tight credit box and originating loans only where we can achieve our return hurdles under an assumption of additional credit stress and higher funding costs.

展望近中期，我們將以與過去一年大致相同的方式來應對這一充滿挑戰的經濟環境。我們將專注於核心業務的強力執行，包括維持嚴格的信貸箱，並僅在額外信貸壓力和更高融資成本的假設下能夠實現回報障礙的情況下發放貸款。

As we've discussed in the past, we have a large addressable market that provides us with ample opportunity to take advantage of high levels of consumer demand to drive strong portfolio growth while still remaining selective in approving borrowers under our conservative underwriting criteria. Where appropriate, we'll also continue to pursue opportunities to increase pricing and expand our margins, a strategy that has been effective in recent quarters in improving our revenue yield.

正如我們過去所討論的，我們擁有一個龐大的潛在市場，為我們提供了充足的機會，可以利用高水平的消費者需求來推動投資組合的強勁增長，同時仍然根據我們保守的承保標準選擇性地批准借款人。在適當的情況下，我們也將繼續尋求提高定價和擴大利潤率的機會，這項策略在最近幾季有效提高了我們的營收收益率。

At the same time, we'll keep a firm handle on expenses while continuing to make key investments in technology, digital initiatives and data and analytics, including artificial intelligence. These investments are critical to achieving our strategic objectives and will create additional sustainable growth, improved credit performance and greater operating efficiency and leverage over the long term.

同時，我們將嚴格控制開支，同時繼續對技術、數位計畫以及數據和分析（包括人工智慧）進行關鍵投資。這些投資對於實現我們的策略目標至關重要，並將在長期內創造額外的可持續成長、改善的信用績效以及更高的營運效率和槓桿率。

In summary, we're pleased with our results, and we're proud of our team's execution. We're well positioned to operate effectively in the current economic cycle and with ample liquidity, significant borrowing capacity on a large addressable market, we stand ready to lean back into growth when justified by the economic conditions.

總之，我們對我們的結果感到滿意，我們對我們團隊的執行力感到自豪。我們處於有利位置，可以在當前的經濟週期中有效運營，並且擁有充足的流動性，在大型潛在市場上具有強大的借貸能力，我們隨時準備在經濟狀況證明合理的情況下恢復增長。

I'll now turn the call over to Harp to provide additional color on our financial results.

我現在將把電話轉給 Harp，為我們的財務表現提供更多資訊。

Thank you, Rob, and hello, everyone. I'll now take you through our third quarter results in more detail. On Page 3 of the supplemental presentation, we provide our third quarter financial highlights. We generated net income of $8.8 million and diluted earnings per share of $0.91. Our results were driven once again by high-quality portfolio and revenue growth and careful management of expenses, partially offset by increased funding costs and net credit loss headwinds caused by macroeconomic conditions.

謝謝你，羅布，大家好。現在我將向您詳細介紹我們第三季的業績。在補充簡報的第 3 頁上，我們提供了第三季的財務亮點。我們的淨利潤為 880 萬美元，稀釋後每股收益為 0.91 美元。我們的業績再次受到高品質投資組合和收入成長以及對費用的謹慎管理的推動，但部分被融資成本增加和宏觀經濟狀況造成的淨信貸損失不利因素所抵消。

Turning to Pages 4 and 5, demand remained strong in the quarter, but our tighter underwriting standards, emphasis on present and former borrower originations and collections focus led us to increase total originations by only 2% from the prior year. By channel, direct mail originations were up 12%, while branch and digital originations were down 1% and 10%, respectively. As we've consistently noted, we've deliberately reduced originations in recent quarters as we appropriately balance growth with further enhancing the credit quality of our portfolio.

轉向第4 頁和第5 頁，本季度需求依然強勁，但我們更嚴格的承保標準、對當前和前借款人的發放以及催收重點的重視，導致我們的發放總額僅比上一年增加了2 %。按頻道劃分，直效郵件始發量增加了 12%，而分支郵件和數位郵件起始量分別下降了 1% 和 10%。正如我們一直指出的那樣，我們在最近幾季刻意減少了貸款發放，因為我們在成長與進一步提高投資組合的信貸品質之間取得了適當的平衡。

Page 6 displays our portfolio growth and product mix for the quarter. We closed the third quarter with net finance receivables of just over $1.75 billion, up $62 million from June 30 and ahead of our guidance. As of the end of the third quarter, our large loan book comprised 73% of our total portfolio and 85% of our portfolio carried an APR at or below 36%. Notably, we grew our small loan portfolio by $30 million or 7% in the third quarter. These higher margin loans will support future revenue yield, offsetting increasing funding costs and meet our return hurdles despite higher expected net credit losses on these somewhat riskier segments.

第 6 頁顯示了本季我們的投資組合成長和產品組合。截至第三季末，我們的財務應收帳款淨額略高於 17.5 億美元，比 6 月 30 日增加了 6,200 萬美元，超出了我們的指引。截至第三季末，我們的大額貸款帳簿占我們總投資組合的 73%，其中 85% 的投資組合的年利率等於或低於 36%。值得注意的是，第三季我們的小額貸款組合增加了 3,000 萬美元，即 7%。儘管這些風險較高的領域的預期淨信貸損失較高，但這些較高保證金的貸款將支持未來的收入收益率，抵消不斷增加的融資成本並滿足我們的回報障礙。

Looking ahead, we expect our ending net receivables in the fourth quarter to grow by approximately $35 million as we continue to monitor the economic environment and maintain our current underwriting standards. We remain focused on smart, controlled growth, particularly given the continued uncertainty around consumer financial health. As circumstances dictate, we're prepared to further tighten our underwriting or leaning back into growth, either of which would impact ending net receivables.

展望未來，隨著我們繼續監控經濟環境並維持目前的承保標準，我們預計第四季的期末應收帳款淨額將成長約 3,500 萬美元。我們仍然專注於明智、可控的成長，特別是考慮到消費者財務健康狀況持續存在不確定性。根據情況需要，我們準備進一步收緊承保或恢復成長，這兩者都會影響期末應收帳款淨額。

As shown on Page 7, our lighter branch footprint strategy in new states and branch consolidation actions in legacy states continue to drive our receivables per branch to all-time highs, coming in at $5 million at the end of the quarter. We believe considerable growth opportunities remain within our existing branch footprint under this more efficient model, particularly in newer branches and newer states.

如第7 頁所示，我們在新州的精簡分支機構策略和在舊州的分支機構合併行動繼續推動我們每個分支機構的應收帳款達到歷史最高水平，在本季度末達到500 萬美元。我們相信，在這種更有效率的模式下，我們現有的分支機構足跡中仍然存在相當大的成長機會，特別是在新的分支機構和新的州。

Turning to Page 8. Total revenue grew 7% to $141 million in the third quarter. Our total revenue yield and interest and fee yield were 32.7% and 29%, respectively. The year-over-year decline in yield is primarily attributable to our continued mix shift towards larger, higher quality loans and the impact of the macroeconomic environment, but we're pleased to see yields move up 80 basis points sequentially, in part from the impact of pricing increases on newer loans and improved credit performance.

翻到第 8 頁。第三季總營收成長 7%，達到 1.41 億美元。我們的總收入收益率和利息及費用收益率分別為32.7%和29%。收益率年減主要是由於我們持續向規模更大、更高品質的貸款組合轉變以及宏觀經濟環境的影響，但我們很高興看到收益率連續上升 80 個基點，部分原因是定價上漲對新貸款和信貸績效改善的影響。

In the fourth quarter, we expect sequential declines in interest and fee yield and total revenue yield of 20 basis points and 50 basis points, respectively, due to seasonally higher net credit losses and interest reversals, offset in part by the impact of pricing increases. We continue to anticipate that our increased pricing will drive further benefits for yields in future quarters as these actions roll through the portfolio over time.

在第四季度，我們預計由於淨信貸損失和利息逆轉季節性上升，利息和費用收益率以及總收入收益率將分別環比下降 20 個基點和 50 個基點，但定價上漲的影響部分抵消。我們繼續預計，隨著這些行動隨著時間的推移在整個投資組合中滾動，我們提高的定價將在未來幾季進一步提高收益率。

Moving to Page 9, our 30-plus-day delinquency rate as of quarter end was 7.3%, and our net credit loss rate in the third quarter was 11%. Our tightened underwriting helped to ensure that the increase in our delinquency rates stay in line with seasonal patterns, while net credit losses came off of their second quarter highs as expected. In the fourth quarter, we expect our delinquency rate to increase slightly compared to the third quarter based on normal seasonality. In addition, we anticipate that our net credit losses will be approximately $52 million in the fourth quarter, with the sequential increase also being due to normal seasonality.

轉到第 9 頁，截至季末，我們的 30 多天拖欠率為 7.3%，第三季的淨信貸損失率為 11%。我們收緊的承保有助於確保拖欠率的成長與季節性模式保持一致，而淨信貸損失也如預期脫離了第二季的高點。根據正常季節性，我們預計第四季的拖欠率將比第三季略有上升。此外，我們預計第四季度的淨信貸損失約為 5,200 萬美元，環比成長也是由於正常的季節性因素。

Turning to Page 10. Our allowance for credit losses increased slightly in the third quarter as we built reserves to support receivables growth that decreased our reserve rate by 10 basis points to 10.6%. As of quarter end, the allowance was $185 million, which continues to compare favorably to our 30-plus-day contractual delinquency of $128 million. We expect to end the year with a reserve rate between 10.4% and 10.6%, subject to macroeconomic conditions.

轉向第 10 頁。我們的信貸損失準備金在第三季略有增加，因為我們建立了準備金以支持應收帳款成長，從而將我們的準備金率降低了 10 個基點至 10.6%。截至季末，備抵​​額為 1.85 億美元，與我們 30 多天的合約拖欠額 1.28 億美元相比仍然有利。我們預計年底存款準備率將在 10.4% 至 10.6% 之間，具體取決於宏觀經濟狀況。

Over the long term, under a normal economic environment, we continue to expect that our net credit loss rate will be in the range of 8.5% to 9% based on our current product mix and underwriting. And we believe, over time, that our reserve rate could drop to as low as 10%, with the improvement attributable to our shift to higher quality loans. As we've always done, however, we'll manage the business in a way that maximizes direct contribution margin and bottom line results.

長期來看，在正常的經濟環境下，根據我們目前的產品結構和承保情況，我們繼續預期淨信用損失率將在8.5%至9%的範圍內。我們相信，隨著時間的推移，我們的準備金率可能會降至 10%，而這種改善歸因於我們轉向更高品質的貸款。然而，正如我們一直所做的那樣，我們將以最大化直接邊際貢獻和底線結果的方式管理業務。

Flipping to Page 11. We continue to closely manage our spending while investing in our capabilities and strategic initiatives. G&A expenses for the third quarter were better than our prior guidance, coming in at $62.1 million. Our annualized operating expense ratio was 14.4% in the third quarter, 50 basis points better than the prior year period, and our revenue growth outpaced our expense growth by a factor of 2.4x. We'll continue to manage our spending closely moving forward. In the fourth quarter, we expect G&A expenses to be approximately $64 million to $65 million to support receivables growth and continued targeted investments in our operations.

翻到第 11 頁。我們繼續密切管理我們的支出，同時投資我們的能力和策略性舉措。第三季的一般管理費用為 6,210 萬美元，優於我們先前的指導。第三季我們的年化營運費用率為14.4%，比去年同期好50個基點，營收成長超過費用成長2.4倍。我們將繼續密切管理我們的支出。在第四季度，我們預計一般管理費用約為 6,400 萬至 6,500 萬美元，以支持應收帳款成長和對我們業務的持續有針對性的投資。

Turning to Pages 12 and 13. Our interest expense for the third quarter was $16.9 million or 4% of average net receivables on an annualized basis. Despite the sharp increase in benchmark rates since early 2022, we've experienced a comparatively modest increase in interest expense as a percentage of average net receivables, thanks for fixed rate debt issued through our asset-backed securitization program. As of September 30, 87% of our debt is fixed rate with a weighted average coupon of 3.6% and a weighted average revolving duration of 1.3 years.

轉向第 12 頁和第 13 頁。第三季的利息支出為 1,690 萬美元，佔年化平均應收帳款淨額的 4%。儘管自 2022 年初以來基準利率急劇上升，但由於透過我們的資產支持證券化計畫發行的固定利率債務，我們的利息支出占平均應收帳款淨額的百分比相對溫和地增長。截至9月30日，我們87%的負債為固定利率，加權平均票面利率為3.6%，加權平均循環期限為1.3年。

In the fourth quarter of 2023, we expect interest expense to be approximately $18 million or 4.1% of average net receivables, with the increase in expense primarily attributable to our expected portfolio growth. As our fixed rate funding matures and we continue to grow using variable rate debt, our interest expense will continue to increase as a percentage of average net receivables.

2023 年第四季度，我們預期利息支出約為 1,800 萬美元，佔平均應收帳款淨額的 4.1%，支出增加主要歸因於我們預期的投資組合成長。隨著我們的固定利率融資的成熟以及我們利用浮動利率債務的持續增長，我們的利息支出占平均淨應收款的百分比將繼續增加。

We also continue to maintain a very strong balance sheet with low leverage, healthy reserves and ample liquidity to fund our growth. As of the end of the third quarter, we had $613 million of unused capacity on our credit facility and $179 million of available liquidity, consisting of unrestricted cash on hand and immediate availability to draw down on our revolving credit facility. Our debt has staggered revolving duration stretching out to 2026. And since 2020, we've maintained a quarter-end unused borrowing capacity of between roughly $400 million and $700 million, demonstrating our ability to protect ourselves against short-term disruptions in the credit market.

我們也持續保持非常強勁的資產負債表、低槓桿、健康的儲備和充足的流動性，為我們的成長提供資金。截至第三季末，我們的信貸額度有 6.13 億美元的未使用能力，以及 1.79 億美元的可用流動資金，其中包括不受限制的手頭現金和可立即提取循環信貸額度的現金。我們的債務循環期限錯開，一直延伸到2026 年。自2020 年以來，我們的季末未使用借款能力一直保持在約4 億至7 億美元之間，這表明我們有能力保護自己免受信貸市場短期幹擾的影響。

Our third quarter funded debt-to-equity ratio remains a conservative 4.2:1. We have ample capacity to fund our business even if access to the securitization market were to become restricted. We incurred an effective tax rate of 19% for the third quarter, lower than guidance due to tax benefits from reestablished deferred tax assets for certain state net operating losses.

我們第三季的融資債務股本比率仍然保守地為 4.2:1。即使進入證券化市場受到限制，我們也有足夠的能力為我們的業務提供資金。我們第三季的有效稅率為 19%，低於指導值，因為某些國家淨營業虧損重建的遞延稅資產帶來了稅收優惠。

For the fourth quarter, we expect an effective tax rate of approximately 24% prior to discrete items, such as any tax impacts of equity compensation. We also continued to return capital to our shareholders. Our Board of Directors declared a dividend of $0.30 per common share for the fourth quarter. The dividend will be paid on December 13, 2023, to shareholders of record as of the close of business on November 22, 2023. We're pleased with our third quarter results, our strong balance sheet and our near and long-term prospects for controlled sustainable growth. That concludes my remarks.

對於第四季度，我們預計在不考慮離散項目（例如股權薪酬的任何稅收影響）之前，有效稅率約為 24%。我們也繼續向股東返還資本。我們的董事會宣布第四季每股普通股股息為 0.30 美元。股息將於 2023 年 12 月 13 日支付給截至 2023 年 11 月 22 日收盤時記錄在案的股東。我們對第三季度業績、強勁的資產負債表以及近期和長期前景感到滿意控制可持續增長。我的發言到此結束。

I'll now turn the call back over to Rob.

我現在將把電話轉回給羅布。

Thanks, Harp. And as always, I'd like to recognize our team for the outstanding results that it's delivered throughout this economic cycle. Looking ahead, we'll remain focused on consistent execution of our core business including originating high-quality loans within our tightened credit box, closely managing expenses and maintaining a strong balance sheet. Our geographic expansion over the past few years have greatly increased our addressable market, positioning us well to take advantage of consumer demand while maintaining our conservative credit posture. We're pleased that our early delinquency and first payment default rates continue to outperform 2019 levels, thanks in large part to our credit tightening actions over the last several quarters and the strong performance of our more recent loan vintages.

謝謝，豎琴。像往常一樣，我要對我們的團隊在整個經濟週期中取得的出色成果表示認可。展望未來，我們將繼續專注於核心業務的持續執行，包括在收緊的信貸框架內發放高品質貸款、嚴格管理費用和維持強勁的資產負債表。過去幾年我們的地域擴張大大增加了我們的潛在市場，使我們能夠很好地利用消費者需求，同時保持保守的信貸態勢。我們很高興看到我們的早期拖欠率和首次付款違約率繼續優於 2019 年的水平，這在很大程度上要歸功於我們過去幾個季度的信貸緊縮行動以及我們最近貸款年份的強勁表現。

We also remain sharply focused on limiting our G&A expenses, while still furthering our key technology, digital and data analytics initiatives that will create additional growth, improved credit performance and greater operating leverage in the future. And of course, we'll continue to monitor the economic environment so that when the conditions are right, we will need to immediately leverage our substantial balance sheet strength, liquidity and borrowing capacity to reopen our credit box and lean further into growth.

我們也繼續集中精力限制我們的一般管理費用，同時繼續推進我們的關鍵技術、數位和數據分析計劃，這些計劃將在未來創造額外的成長、改善的信用表現和更大的營運槓桿。當然，我們將繼續監測經濟環境，以便在條件合適時，我們需要立即利用我們龐大的資產負債表實力、流動性和借貸能力來重新開放我們的信貸箱，並進一步促進成長。

Thank you again for your time and interest. I'll now open up the call for questions. Operator, would you please open the line?

再次感謝您的時間和興趣。我現在開始提問。接線員，請開通線路好嗎？

(Operator Instructions) Our first question is from John Hecht with Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 John Hecht。

First question is, I think you guys said $52 million of losses or charge-offs in the fourth quarter. I'm just wondering, the roll rates you're seeing behind that, are they relatively consistent with recent quarters or anything that you're assuming in terms of the migration of roll rates?

第一個問題是，我想你們說第四季有 5,200 萬美元的損失或沖銷。我只是想知道，您在這背後看到的滾動率是否與最近幾季或您在滾動率遷移方面的假設相對一致？

John, thanks for the question. Yes, we're assuming consistent roll rates from prior quarter with kind of the normal seasonal lift that we would see albeit off of elevated levels still.

約翰，謝謝你的提問。是的，我們假設滾動率與上一季保持一致，並且我們會看到正常的季節性提升，儘管仍處於較高水平。

Okay. And then I think you guys referred a couple of times in the presentation, a little bit of focus on kind of recurring customers rather than new customers, part of the tightening. I mean what (technical difficulty) of a recurring customer, but a new customer as just to kind of get a sense for what that specific focus might do to the kind of loss mix?

好的。然後我認為你們在演示中提到了幾次，有點關注經常性客戶而不是新客戶，這是緊縮的一部分。我的意思是老客戶（技術難度）是什麼，但新客戶只是為了了解特定的關注點可能會對損失組合產生什麼影響？

Yes. You broke up there, John, right in the middle of your question. Can I ask you to repeat it because I think we missed the gist of it?

是的。約翰，你在問問題的時候就分手了。我可以請你重複一遍嗎，因為我認為我們沒有抓到重點？

I apologize. I'm wondering what the kind of loss experience is with -- between new and recurring customers to get a sense of what that focus might do to losses over the next few quarters.

我道歉。我想知道新客戶和舊客戶之間的損失經歷是什麼樣的，以了解這種關注可能對未來幾季的損失產生什麼影響。

Yes. And so look, new borrowers, and we've never disclosed the difference between a new borrower and an existing borrower in terms of higher losses. But new borrowers do perform worse until they're seasoned, right? Now obviously, we've been shifting the mix of our book to present borrowers and former borrowers from new borrowers over a period of time. But when you're in new geographies and the new states we are, we're still going to have a reasonably high percentage of new borrowers, and that will naturally take time to season through.

是的。因此，新借款人，我們從未揭露新借款人與現有借款人在較高損失方面的差異。但新借款人在經驗豐富之前表現確實會更差，對嗎？顯然，一段時間以來，我們一直在改變本書的結構，以呈現借款人和前借款人以及新借款人。但是，當你身處新的地區和新的州時，我們仍然會有相當高的新借款人比例，這自然需要時間來適應。

But I will tell you, though, that our underwriting models adjust for the new borrower effect and assume additional stress on those customers, and we underwrite, obviously, with the assumption not only of that stress, but the incremental cost of funds that we incur today as well as fully loaded expenses to make sure that we achieve our hurdle. So it's factored into our models. But Harp, anything to add to that?

但我會告訴你，我們的核保模式會根據新借款人效應進行調整，並對這些客戶承擔額外的壓力，顯然，我們承保時不僅假設了這種壓力，還假設了我們所承擔的增量資金成本今天以及滿載的費用，以確保我們實現我們的目標。所以它被納入我們的模型中。但是 Harp，還有什麼要補充的嗎？

Yes. I would just say that our originations continue to be concentrated on programs for present and former borrowers, and we know that they performed better than new borrowers just because of the on-us data that we have on them. And then the other thing that I would probably add to that in terms of the new borrowers, Rob touched on this, but they fit within our risk box. So when we're making loans to new borrowers, we're making sure that they are meeting those internal hurdles that we have.

是的。我只想說，我們的起源繼續集中在針對現任和前任借款人的計劃上，我們知道他們的表現比新借款人更好，只是因為我們擁有關於他們的關於我們的數據。然後，我可能會在新借款人方面添加另一件事，羅布談到了這一點，但它們符合我們的風險範圍。因此，當我們向新借款人提供貸款時，我們要確保他們能夠克服我們所面臨的內部障礙。

Yes. And John, over 70% of our customers are former and present borrowers this quarter, which has been pretty steady, I guess, since last year, a little bit up from last year but pretty steady. And again, that's related to the new states we're in, we're going to have some of that new borrowers.

是的。約翰，本季超過 70% 的客戶都是以前和現在的借款人，我想，自去年以來，這一情況一直相當穩定，比去年有所上升，但相當穩定。再說一次，這與我們所處的新州有關，我們將有一些新的借款人。

And it's also important to note, though, the vintages, fourth quarter '22 and more recent are all performing very well. Now they're just now getting to the earliest vintage, fourth quarter '22, is just now getting to 12 months on book. So we're starting to see what the peak losses are and the other ones are still working through. But right now, performance is good, and that's reflective of that mix of new borrowers and present and former borrowers. So that's -- we feel good about where things are given the current macro environment for those vintages.

不過，值得注意的是，22 年第四季以及最近的年份都表現得非常好。現在他們剛剛進入最早的年份，即 22 年第四季度，預訂時間剛剛達到 12 個月。因此，我們開始了解峰值損失是什麼，其他損失仍在解決中。但目前，表現良好，這反映了新借款人以及現任和前借款人的混合情況。所以，我們對這些年份目前的宏觀環境感到滿意。

That's a very good context. And my last question is, I think you guys mentioned and what we've heard is the kind of loss experienced somewhat were tied to income ranges. I'm wondering, are you seeing anything like any dispersion or I guess, of credit metrics on a geographical basis? Or is there anything else to discern? Or is it -- in your mind, is it largely income driven?

這是一個非常好的背景。我的最後一個問題是，我想你們提到過，我們所聽到的是，所經歷的損失在某種程度上與收入範圍有關。我想知道，您是否看到任何類似或我猜的信用指標在地理基礎上的分散？或是還有什麼可以辨別的嗎？或者在你看來，它主要是由收入驅動的嗎？

Well, it's not just one factor. I mean look, we -- naturally, when we tightened, we reduced the lower FICO and increased the percentage to higher income bands. I think that's just a natural effect of when you're tightening. So it's kind of all built into the mix. But obviously, employment is a factor; industry, states perform differently. We have all these cuts in our underwriting models. In fact, hundreds and hundreds of cells, where we look at what the returns are and whether that's small loan, large loan, check, digital loan, homeowner, renter by state, we have all those cuts. And we've talked about tightening since the fourth quarter of 2022, where we really tightened. But we've been tightening throughout 2022, but inflation shot up to 9%.

嗯，這不僅僅是一個因素。我的意思是，我們——自然地，當我們收緊貨幣政策時，我們降低了較低的 FICO 並增加了較高收入區間的百分比。我認為這只是收緊時的自然效果。所以這一切都融入了混合中。但顯然，就業是一個因素；行業、州的表現各不相同。我們對承保模式進行了所有這些削減。事實上，在成百上千個單元格中，我們查看回報是什麼，以及是否是小額貸款、大額貸款、支票、數位貸款、房主、租戶（按州），我們都有所有這些削減。自 2022 年第四季以來，我們一直在談論緊縮政策，當時我們確實收緊了政策。但 2022 年我們一直在實施緊縮政策，但通膨卻飆升至 9%。

But ever since fourth quarter 2022 and every quarter that goes by, we're constantly turning the dials in reaction to what we see in all those individual segments and cuts that we have. And so we feel good that we're making the right decisions and putting on the assets that will hit a hurdle even under stress -- additional stressed environment, and we're putting on in the end, the highest confidence assets each and every quarter.

但自 2022 年第四季以來以及接下來的每個季度，我們都會不斷調整錶盤，以根據我們在所有這些單獨的細分市場和剪輯中看到的情況做出反應。因此，我們感到很高興，因為我們做出了正確的決策，並投入了即使在壓力下也會遇到障礙的資產——額外的壓力環境，我們最終每個季度都會投入最高信心的資產。

The next question is from Vincent Caintic.

下一個問題來自文森特·凱恩蒂克。

Thanks for all the detailed guidance that you're giving in the fourth quarter and laying it out in the slides is really very helpful. And first, just wondering the trends that we're seeing in the fourth quarter, just if that's a good jumping off point when we think about 2024 or going forward. I know it's a little bit ways away. But when you think about the revenues, the credit performance and your expense controls, just wondering if that's a good jumping off point in the fourth quarter.

感謝您在第四季度提供的所有詳細指導，並將其放在幻燈片中確實非常有幫助。首先，想知道我們在第四季度看到的趨勢，當我們思考 2024 年或未來時，這是否是一個很好的起點。我知道還有一點距離。但當你考慮收入、信貸表現和費用控制時，你會想知道這是否是第四季的一個很好的起點。

Yes. I mean, naturally, you've got to look at fourth quarter and project out from there. And we're not giving specific guidance at this point in time for next year. Naturally, we're still in the middle of our budget process. But I think most importantly is those vintages that we said originated at fourth quarter '22 and sooner is going to be about 80% of the book by the end of this year. A couple more months of seeing how those vintages perform is going to help give us better guidance for all of you as to what we might expect next year.

是的。我的意思是，自然地，你必須專注於第四季度並從那裡進行預測。我們目前不會為明年提供具體指引。當然，我們仍處於預算過程中。但我認為最重要的是那些我們所說的起源於 22 年第四季的年份，到今年年底，這些年份很快就會占到本書的 80% 左右。再過幾個月看看這些年份的表現將有助於我們為大家提供更好的指導，以了解明年的預期。

What we do know is the 20% of the book that is pre fourth quarter '22, that those vintages and some have called it a back book, those vintages are going to create stress in the early part of next year. By the very nature, they've been matured, renewed where they could be renewed, paid off and there's still a lot of good customers in there, but there's also customers in there probably disproportionately that are under some form of borrower assistance program, which for us is important for them to stay active and engaged, particularly leading up to tax season.

我們所知道的是，這本書的 20% 是 22 年第四季之前的，這些年份和一些人稱之為過時的書，這些年份將在明年初造成壓力。從本質上講，它們已經成熟，在可以更新、還清的地方進行了更新，那裡仍然有很多優質客戶，但那裡也有不成比例的客戶接受某種形式的借款人援助計劃，這對我們來說，讓他們保持活躍和參與很重要，特別是在報稅季節之前。

So if we sit here right now and say what is the credit profile look like for next year, I don't think anybody can predict precisely, particularly given some of the macro events. But what I think we can say is there will be some stress from those earlier vintages, that the more recent vintages are performing well and we haven't seen anything there that is causing concern, and I think the things that will make a difference for next year will be what's the tax refund season look like. I think that's always a big help and a lever very beginning of the year, and we will ring-fence those assets and make sure we put everything against collecting against them.

因此，如果我們現在坐在這裡說明年的信用狀況如何，我認為沒有人可以準確預測，特別是考慮到一些宏觀事件。但我認為我們可以說的是，那些早期年份的葡萄酒將會帶來一些壓力，最近年份的葡萄酒表現良好，我們沒有看到任何引起擔憂的事情，我認為這些事情會對明年將是退稅季。我認為這在年初總是一個很大的幫助和槓桿，我們將隔離這些資產，並確保我們採取一切措施反對對它們進行收集。

And then, of course, if there's any other macro stresses that might be out there, probably the one that we're all kind of looking at is, is there any results or contagion from the Middle East that ends up hitting oil prices. So that would be the one thing we would be looking at as we get close here to the end of the year and figuring out what next year looks like.

當然，如果可能有任何其他宏觀壓力，我們大家都在關注的可能是，中東是否會產生任何結果或蔓延，最終打擊油價。因此，當我們接近年底並弄清楚明年會是什麼樣子時，這將是我們要考慮的一件事。

Okay. Great. And then I guess the other -- maybe those other lines like expenses, you've been pretty able to hold those expenses controls pretty well about the expense ratio. Just wondering if there's more kind of room to hold it. Can -- if the expenses can hold it, kind of relatively fixed for a while.

好的。偉大的。然後我猜想另一個——也許像費用這樣的其他項目，你已經能夠很好地控制費用比率。只是想知道是否有更多的空間來容納它。可以——如果費用可以負擔的話，在一段時間內相對固定。

What I would tell you is that we are laser-like focused that every dollar we spend helps drive the business forward. And we've been strongly profitable in this environment and yet still investing in the business. And we will adjust the spending pattern as we need to, to continue to grow the business where growth is needed or to continue to drive operating leverage that we need to do over time as well. So I can't really give you any more guidance than that right now.

我要告訴你的是，我們像雷射一樣專注，我們花的每一美元都有助於推動業務發展。在這種環境下，我們已經實現了強勁盈利，但仍在對該業務進行投資。我們將根據需要調整支出模式，以繼續發展需要成長的業務，或繼續提高我們需要隨著時間的推移而實現的營運槓桿。所以我現在無法給你更多的指導。

Okay. Perfect. And last one for me. So the product mix has shifted. You've talked about high-quality loans doing more auto secured. And just wondering if that's a trend that we should expect to continue? And if there's any way -- are there may be certain products you want to lean into more?

好的。完美的。最後一張給我。因此，產品結構發生了變化。您談到了高品質貸款提供更多汽車擔保。只是想知道這種趨勢是否應該持續下去？如果有什麼辦法的話——您是否想更多地關注某些產品？

Well, look, I think auto secured is definitely one that we'll continue to lean into and grow. And I kind of view that and we've said this before, kind of the one end of the barbell. We have our large loan products that are the bulk of our business now and that are performing well. And then we have the small loan business. And the small loan business is very attractive on a return basis. And you would have seen that we actually grew that this quarter sequentially same as we did last year sequentially at this time. And part of that is we -- it was part of our tightening where we said, you know what, we have the opportunity instead of making a larger loan to some group of customers. We can give them a smaller loan but charge them a little bit more because we perceive the risk to be higher. So we risk-based priced it and put on some more small loans and effectively, we think created a pretty good return on that growth that we did in the small loan book.

好吧，我認為汽車安全絕對是我們將繼續關注和發展的領域。我認為這一點我們之前已經說過，有點像槓鈴的一端。我們擁有大型貸款產品，它們是我們目前業務的主要部分，並且表現良好。然後我們還有小額貸款業務。而且小額貸款業務的回報非常有吸引力。您會發現，我們本季的環比成長實際上與去年同期的環比增長相同。其中一部分是我們——這是我們緊縮政策的一部分，我們說，你知道嗎，我們有機會而不是向某些客戶群提供更多貸款。我們可以向他們提供較小的貸款，但收取較高的費用，因為我們認為風險較高。因此，我們基於風險對其進行定價，並發放了更多小額貸款，我們認為，我們在小額貸款帳簿中所做的成長實際上創造了相當不錯的回報。

So there's always that opportunity for us to lean in where it's attractive on small loans. We haven't limited ourselves to a rate cap at 36%. So having the ability, particularly in a rising rate environment or hopefully a flat rate environment, and we'll see how that turns out, having that ability to lean back into those segments when it's appropriate is something that, I think, helps us stand out versus competitors.

因此，我們總是有機會利用小額貸款有吸引力的地方。我們並未將利率上限限制在 36%。因此，擁有這種能力，特別是在利率上升的環境或希望在利率統一的環境中，我們將看到結果如何，在適當的時候有能力重新投入這些細分市場，我認為這有助於我們站穩腳跟與競爭對手相比。

(Operator Instructions) The next question is from Bill Dezellem with Tieton Capital.

（操作員說明）下一個問題來自 Tieton Capital 的 Bill Dezellem。

I like to kind of circle back to the comments that you just made here. You had some pretty significant small loan origination growth this quarter. What is that actually signaling to us? Or what were you doing there? I think you started to allude to that in your last answer.

我想回顧一下您剛才在這裡發表的評論。本季小額貸款發放成長相當顯著。這實際上向我們發出了什麼訊號？或者你在那裡做什麼？我想你在上一個回答就開始提到這一點了。

Yes. I think, Bill, as we look to put on high confidence growth. High confidence growth doesn't just mean you put on larger loans with the highest risk ranks. You've got to look at it from a bottom line return on a risk-based basis as well. And so when we were looking -- and I give you an example, when you're looking at whether it's digital or a check or even a branch loan, renewal on a branch, as we look at that, and we've been staying focused on where we might reprice, and we have this 1,500 line on small loans, instead of giving somebody $2,000 or $2,500 below a 36% rate, we're looking at the credit quality and say, on the margin, you know what, let's give the person a $1,500 loan and maybe charge them a 43% rate because we believe that they're a good credit on a relative basis and now we've got the pricing to make sure that we've got plenty of room and buffer built into the stresses on the model to be able to achieve our return hurdles.

是的。比爾，我想，我們希望實現高信心成長。高信心成長不僅意味著您發放風險等級最高的較大貸款。您還必須在基於風險的基礎上從底線回報來看待它。因此，當我們在尋找時——我給你一個例子，當你在尋找它是數位貸款還是支票，甚至是分行貸款、分行續約時，我們一直在關注這一點重點關注我們可能重新定價的地方，我們有1,500 的小額貸款額度，而不是給某人2,000 美元或低於36% 的利率2,500 美元，我們正在考慮信貸質量，並說，在邊際上，你知道嗎，讓我們給這個人1,500美元的貸款，也許收取43% 的利率，因為我們相信相對而言他們的信用良好，現在我們已經確定了定價，以確保我們有足夠的空間和緩衝進入模型上的壓力，以便能夠實現我們的回報障礙。

So we -- when we say a highest confidence asset, we're looking at the highest confident asset on a marginal basis, bottom line return. It's not just necessarily putting on the highest FICO customer.

因此，當我們說最高信心資產時，我們是在邊際基礎上考察最高信心資產，即底線回報。這並不一定是指 FICO 最高的客戶。

And Rob, taking that one step further, said another way, that's the highest ROE customer? Or are you seeing -- saying something slightly different than that?

羅布更進一步，用另一種方​​式說，那是 ROE 最高的客戶？或者你是否看到——說的話與此略有不同？

I'm not going to say it's the -- necessarily the highest ROE or ROA customer. I think what I -- because it varies. What I'm saying is when you look at the best assets you can put on, there is a portion of the portfolio, those small loan customers that have equal and maybe better returns than other parts of the portfolio that you're putting on, and it's attractive business.

我不會說它一定是 ROE 或 ROA 最高的客戶。我認為我 - 因為它有所不同。我的意思是，當你考慮你可以投入的最佳資產時，投資組合的一部分，那些小額貸款客戶，與你投入的投資組合的其他部分相比，擁有相同甚至更好的回報，這是一個有吸引力的生意。

All right. And then taking that a step further, I believe that you have given guidance for a 50 basis point sequential decline in your revenue yield in Q4 versus Q3. Would you relate that expectation to what you had just highlighted for us? They seem in contrast. That's why I posed the question.

好的。然後更進一步，我相信您已經給出了第四季度收入收益率比第三季度連續下降 50 個基點的指導。您能否將這種期望與您剛才向我們強調的內容連結起來？他們看起來形成鮮明對比。這就是我提出這個問題的原因。

Yes. And the decline in revenue yield that you see in the fourth quarter is really because of the seasonal increase in NCLs and delinquencies, which will lead to higher reversals. So that's going to be what's driving that impact on a sequential basis. But I think if you were to back out that guidance from the fourth quarter guidance, still the resulting revenue yields would be higher than what they were in second quarter.

是的。你在第四季度看到的收入收益率下降實際上是因為不良信用貸款和拖欠率的季節性增加，這將導致更高的逆轉。因此，這將是推動這種連續影響的因素。但我認為，如果你從第四季的指導中推翻這項指導，最終的收入收益率仍然會高於第二季的水平。

So the repricing power is in there. It obviously takes time to build as the portfolio turns over, and we're not done repricing. We are always looking for opportunities to reprice, but it gets masked quarter-to-quarter sometimes by the seasonality of the NCLs.

所以重新定價的力量就在那裡。顯然，隨著投資組合的周轉，建立起來需要時間，而且我們還沒有完成重新定價。我們一直在尋找重新定價的機會，但有時它會被 NCL 的季節性所掩蓋。

That's very helpful. And then I certainly see the many uncertainties out in the broad environment. But that having been said, are you seeing anything that leads you to think about being more aggressive with originations?

這非常有幫助。然後我當然看到了大環境中的許多不確定性。但話雖如此，您是否看到任何事情讓您考慮對起源採取更積極的態度？

I'm surprised I got that question in this environment. Look, we're constantly asking ourselves as I think you would expect us to do is, are we seeing things that indicate we should lean into growth? Or are we seeing things that would say, hey, let's pull back, right? It's a weekly discussion if you will. And we're able to turn those dials on the underwriting side weekly to the greatest extent possible.

我很驚訝我在這種環境下提出這個問題。看，我們不斷地問自己，正如我認為您期望我們做的那樣，我們是否看到了表明我們應該傾向於成長的事情？或者我們看到一些事情會說，嘿，讓我們撤退吧？如果你願意的話，這是每週一次的討論。我們能夠每週最大程度地轉動承保方面的這些旋鈕。

And so I think that inflation coming down is key. I think we want to see, as I mentioned earlier, how our recent vintages continue to mature here over the next 3 months or so because, look, that's the best indication, is where you tightened or you're seeing the performance that you expected. And then I think it really comes down to just seeing if there's any other macro headwinds that are out there. I mean we like the fact there's lots of jobs out there. Unemployment is low. The economy seems to be robust and maybe heading for a soft landing even with some pullback in consumer spending. But we're mindful of the fact that there are other effects that could hit us particularly if oil prices spike for some reason.

因此我認為通膨下降是關鍵。我想我們希望看到，正如我之前提到的，我們最近的年份如何在未來3 個月左右的時間內繼續成熟，因為，看，這是最好的跡象，是你收緊的地方，或者你正在看到你期望的表現。然後我認為這實際上取決於是否存在其他宏觀阻力。我的意思是，我們喜歡那裡有很多工作機會。失業率很低。經濟似乎很強勁，即使消費者支出有所回落，也可能走向軟著陸。但我們注意到這樣一個事實，即還有其他影響可能會對我們造成打擊，特別是如果油價因某種原因飆升。

And so we're just taking that all into consideration. I think it's partly why we're guiding to kind of a more modest growth in the fourth quarter versus third quarter, because we're making these judgments real-time.

所以我們只是考慮到這一切。我認為這就是我們指導第四季比第三季更加溫和成長的部分原因，因為我們正在即時做出這些判斷。

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

問答環節到此結束。我想將會議轉回給貝克先生發表閉幕詞。

Thanks, operator, and thanks, everyone, for joining the call. Look, as we close out this year and approach 2024, as I said, we're going to continue to monitor the changing macro conditions and the overall health of the consumer. And let me just say again, and I know we had it in our prepared remarks, but we're focused on the fundamentals, strong underwriting. We're adjusting our underwriting as needed. We're focused on disciplined growth and growth as appropriate as we put on our highest confidence assets. We're always focused on tight expense management and investing in those initiatives that drive growth and improve our operating leverage, and of course, maintaining a strong balance sheet and liquidity. And those are the mantra in which we manage the business, and we'll continue to do so. And I think like everybody, we're hoping for a brighter 2024, and we're prepared -- we're positioned well for 2024 regardless of the environment, but we're hoping for a very strong environment.

謝謝接線員，也謝謝大家加入通話。看，正如我所說，隨著今年即將結束並臨近 2024 年，我們將繼續監測不斷變化的宏觀條件和消費者的整體健康狀況。讓我再說一遍，我知道我們在準備好的發言中已經提到了這一點，但我們專注於基本面和強大的承保。我們正在根據需要調整我們的承保。我們專注於有紀律的成長和適當的成長，因為我們投入了我們最高信心的資產。我們始終專注於嚴格的費用管理，並投資於那些推動成長和提高營運槓桿的舉措，當然還有保持強勁的資產負債表和流動性。這些是我們管理業務的口號，我們將繼續這樣做。我認為和所有人一樣，我們希望 2024 年會更加光明，而且我們已經做好了準備——無論環境如何，我們都為 2024 年做好了準備，但我們希望有一個非常強勁的環境。

This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

今天的電話會議到此結束。您可以斷開線路。感謝您的參與，祝您有個愉快的一天。