Regional Management Corp (RM) 2025 Q1 法說會逐字稿

Greetings and welcome to the Regional Management first quarter 2025 earnings call. (Operator Instructions) It is now my pleasure to introduce your host, Garrett Edson. Thank you. You may begin.

問候並歡迎參加區域管理 2025 年第一季財報電話會議。（操作員指示）現在我很高興介紹您的主持人加勒特·埃德森。謝謝。你可以開始了。

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，下午好。現在每個人都應該可以查看我們的收益公告和補充報告，這些報告是在本次電話會議之前發布的，可以在我們的網站 regionalmanagement.com 上找到。在我們開始正式發言之前，我將引導您閱讀補充報告的第 2 頁，其中包含有關前瞻性陳述和非 GAAP 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.

我們今天的討論內容可能包括前瞻性陳述，這些陳述是基於管理層對公司未來財務表現和業務前景的當前預期、估計和預測。這些前瞻性陳述僅代表今天的觀點，並受各種假設、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表達或暗示的結果有重大差異。

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.

這些聲明並非對未來表現的保證，因此您不應過度依賴它們。我們請大家參閱我們的新聞稿、簡報以及最近向美國證券交易委員會提交的文件，以便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 measures 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涉及某些非公認會計準則指標。這些指標與最具可比性的 GAAP 指標的對帳可以在我們的收益公告或收益介紹中找到，也可以發佈在我們的網站 regionalmanagement.com 上。

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

現在我想介紹區域管理公司總裁兼執行長 Rob Beck。

Thanks, Garrett, and welcome to our first quarter 2025 earnings call. I'm joined today by Harp Rana, our Chief Financial and Administrative Officer. On this call, we'll cover our first quarter financial and operating results, provide an update on our portfolio credit performance and growth strategies, and share our expectations for the second quarter and the balance of 2025.

謝謝，加勒特，歡迎參加我們 2025 年第一季財報電話會議。今天與我一起出席的還有我們的財務和行政官 Harp Rana。在本次電話會議上，我們將介紹第一季度的財務和經營業績，提供投資組合信貸表現和增長戰略的最新信息，並分享我們對第二季度和 2025 年剩餘時間的預期。

We're very pleased with how we've begun the new year. We delivered $7 million in net income and $0.70 of diluted EPS in the first quarter, in line with our guidance. We experienced relatively low seasonal liquidation of $2 million in the quarter compared to a $27 million portfolio declined in the first quarter of last year.

我們對新的一年的開始感到非常高興。我們第一季的淨收入為 700 萬美元，稀釋每股收益為 0.70 美元，符合我們的預期。與去年第一季 2,700 萬美元的投資組合損失相比，本季我們的季節性清算額相對較低，為 200 萬美元。

Thanks to our recent growth initiatives, including opening 15 new branches in September, we had a much lower seasonal liquidation this year despite a strong tax season and some adverse impacts from winter storms. We generated record first quarter originations while maintaining our tightened credit box and ending net receivables were up 8% year over year, our fastest year over year growth rate since 2023.

由於我們近期採取的成長舉措，包括 9 月開設 15 家新分支機構，儘管今年的稅收季節強勁且冬季風暴帶來了一些不利影響，但我們的季節性清算額卻大幅下降。我們在第一季創造了創紀錄的貸款發放記錄，同時保持了嚴格的信貸限制，期末淨應收帳款同比增長 8%，這是自 2023 年以來最快的同比增長率。

We've opened 15 new branches since September 2024, 10 of which are entirely new markets, and all are performing very well and growing rapidly. Our 10 new market branches are located in California, Arizona, and Louisiana. As of the end of the first quarter, the new market branchs had been opened for an average of roughly two months and had an average portfolio balance of $2.2 million, with the largest of the branches achieving more than $7 million of ledger in less than three months. In the first quarter, these 10 branches generated $1.5 million of revenue against $1.1 million of G&A expense.

自 2024 年 9 月以來，我們已開設了 15 家新分支機構，其中 10 家是全新的市場，所有分支機構均表現良好且發展迅速。我們的 10 個新市場分支機構位於加利福尼亞州、亞利桑那州和路易斯安那州。截至第一季末，新市場分公司平均開業時間約為兩個月，平均投資組合餘額為 220 萬美元，其中最大的分公司在不到三個月的時間內就實現了超過 700 萬美元的帳面餘額。第一季度，這 10 家分行創造了 150 萬美元的收入，而一般及行政費用為 110 萬美元。

Looking back further, our new branches open between one and three years averaged $7.4 million in portfolio balance as of the end of the first quarter. Notably, we've achieved this portfolio growth while maintaining a credit box in new markets that is tighter than our broader market. Our new branches generally begin to generate positive monthly net income at month 14, and pre-provision net income at month 3. These results demonstrate the power of our brand-based model and our ability to accelerate growth through brands and geographic expansion without needing to open the credit box.

進一步回顧，截至第一季末，我們開設一至三年的新分公司的投資組合餘額平均為 740 萬美元。值得注意的是，我們在實現投資組合成長的同時，在新市場中保持了比大盤更嚴格的信貸限制。我們的新分公司一般在第 14 個月開始產生正的月淨收入，在第 3 個月產生撥備前淨收入。這些結果證明了我們基於品牌的模式的強大力量，以及我們無需打開信用箱即可透過品牌和地理擴張加速成長的能力。

We also continue to experience strong results from our barbell strategy which focuses on growth in our high quality, auto-secured and higher margin, small loan portfolios. Our auto secured loan portfolio grew by $59 million, or 37% year over year to 12% of the total portfolio compared to 9% in the prior year period. Meanwhile, our portfolio of loans with APR is above 36% also grew by $59 million, or 21% year over year to 18% of our portfolio compared to 16% in the prior year period. These portfolios continue to perform well, have strong margins, and support our customer graduation strategy.

我們的槓鈴策略也持續取得強勁業績，該策略專注於高品質、自動擔保和高利潤的小額貸款組合的成長。我們的汽車抵押貸款組合成長了 5,900 萬美元，年增 37%，佔總貸款組合的 12%，而去年同期這一比例為 9%。同時，我們的年利率超過 36% 的貸款組合也成長了 5,900 萬美元，年增 21%，達到 18%，而去年同期這一比例為 16%。這些投資組合持續表現良好，利潤豐厚，並支持我們的客戶畢業策略。

Our loan portfolio generated $153 million revenue in the quarter, a record for the first quarter and up 7% from the prior year period after adjusting for the impact of the fourth quarter 2023 loan sale on first quarter 2024 results. Revenue yield was 10 basis points better year over year and up 100 basis points compared to the first quarter of 2023. In each case, after adjusting to the impact of loan sale on yields in prior periods.

我們的貸款組合在本季度創造了 1.53 億美元的收入，創下了第一季的最高紀錄，在調整了 2023 年第四季貸款銷售對 2024 年第一季業績的影響後，比去年同期增長了 7%。營收殖利率年增 10 個基點，較 2023 年第一季上升 100 個基點。在每種情況下，均要調整前期貸款出售對收益率的影響。

We've been pleased with the lift in yields that we've experienced over the past couple of years from increased pricing, improved credit performance, and a mixed shift to higher margin loans. On the credit front, our portfolio continues to perform well. Our 30-plus day delinquency rate was 7.1% at the end of the first quarter, which was flat to the prior year on a GAAP basis, but an improvement of 20 basis points after adjusting for the impact of growth in our higher margin portfolio and the carryover impact of the 2024 hurricane events.

我們很高興看到過去幾年收益率的上升，這得益於定價的提高、信貸業績的改善以及向高保證金貸款的混合轉變。在信貸方面，我們的投資組合持續表現良好。我們第一季末的 30 天以上拖欠率為 7.1%，按照 GAAP 計算與上年持平，但在考慮到利潤率較高的投資組合增長的影響以及 2024 年颶風事件的結轉影響後，這一數字提高了 20 個基點。

Net credit losses came in $1.6 million better than our guidance. Our NCL rate was 12.4% or 120 basis points better than the prior year period after adjusting for the loan sale impact and the growth in our higher margin portfolio. Our front book now makes up 92% of our portfolio, is continuing to perform in line with our expectations, and has a 30 plus day contractual delinquency rate of 6.8% compared to 10% in the back book portfolio.

淨信貸損失比我們的預期低 160 萬美元。在調整貸款銷售影響和高利潤率投資組合的成長後，我們的 NCL 利率比去年同期高出 12.4% 或 120 個基點。我們的前帳簿現在占我們投資組合的 92%，繼續按照我們的預期運作，30 天以上的合約拖欠率為 6.8%，而後帳簿投資組合的合約拖欠率為 10%。

As we evaluate our quarterly and annual loss curves, we're observing consistent and meaningful improvements in loss performance within the front book vintages across all months on book. We're also seeing roll rates improved across early, mid, and late stage buckets. We expect these improvements to benefit our bottom line in future quarters. We'll continue to carefully monitor credit quality and performance, making adjustments where advisable to further improve credit margins and bottom line outcomes.

當我們評估季度和年度損失曲線時，我們觀察到所有月份的前期帳簿損失表現都有持續且有意義的改善。我們也看到早期、中期和後期階段的滾動率有所提高。我們預計這些改進將有利於我們未來幾季的獲利。我們將繼續密切監控信貸品質和績效，並在適當時做出調整，以進一步提高信貸利潤率和底線結果。

Looking ahead, our focus is on the economy and its potential impact on our portfolio credit performance and growth strategy. Like everyone else, we're closely monitoring recent events that may have an impact on the macroeconomic environment. As a lender, tariffs alone don't have a direct material impact on our operations, but any governmental policy that increases the likelihood of an economic downturn has our ongoing attention.

展望未來，我們的重點是經濟及其對我們的投資組合信貸表現和成長策略的潛在影響。與其他人一樣，我們正在密切關注可能對宏觀經濟環境產生影響的近期事件。作為貸方，關稅本身不會對我們的營運產生直接的實質影響，但任何增加經濟衰退可能性的政府政策都會引起我們的持續關注。

While we're unable to predict the outcome of trade policy and its impact on our customers, it's worth a reminder that we significantly tightened our underwriting in late 2022 and 2023, and our underwriting remains conservative. This is somewhat unlike a typical cycle where we and the broader industry would tighten credit in response to a change in economic conditions.

雖然我們無法預測貿易政策的結果及其對客戶的影響，但值得提醒的是，我們在 2022 年末和 2023 年大幅收緊了承保，我們的承保仍然保持保守。這有點不同於我們和整個產業為了因應經濟狀況的變化而收緊信貸的典型週期。

Instead, for this cycle, we would enter a potential downturn with an already tightened credit box. We can certainly tighten further if warranted, but any impacts from a worsening environment should be at least partially mitigated by already having a tight credit box.

相反，在這個週期中，我們將進入一個潛在的經濟衰退，信貸條件已經收緊。如果有必要，我們當然可以進一步收緊，但惡化的環境所帶來的任何影響至少應該透過嚴格的信貸限制得到部分緩解。

Aside from conservative underwriting, we've also maintained a strong level of credit loss reserves. Our current allowance for credit losses of $199 million as of the end of the first quarter compares favorably to our 30 plus day past due portfolio of $134 million. Our operating margin and our allowance for credit losses, reserve rate of 10.5%, gives us significant loss absorption capacity.

除了保守的承保外，我們還維持了較高的信用損失準備金水準。截至第一季末，我們目前的信用損失準備金為 1.99 億美元，與我們 30 多天逾期的 1.34 億美元相比，這一數字相對較高。我們的營業利潤率和信貸損失準備金（準備率為 10.5%）使我們具有強大的損失吸收能力。

In addition, having entered eight new states and increased our addressable market by more than 80% since 2020, we have significant runway to grow in our existing geographies without expanding our credit box. In fact, we could further tighten our credit box without inhibiting our short-term growth strategies, and we'd also expect volume opportunity to increase the prime sources of credit tighten their underwriting.

此外，自 2020 年以來，我們已進入 8 個新州，並將目標市場擴大了 80% 以上，因此，無需擴大信貸範圍，我們在現有地區就有顯著的成長空間。事實上，我們可以在不抑制短期成長策略的情況下進一步收緊信貸限制，而且我們還預計，數量機會將增加主要信貸來源收緊承保。

For these reasons, along with the strong new brands growth that I discussed earlier, we're comfortable maintaining our guidance of a minimum 10% portfolio growth in 2025, despite the economic uncertainty. In some, from both the credit performance and growth perspective, we feel that we're well positioned to navigate through any economic environment. We've entered this credit period of uncertainty from a position of strength in light of our existing tight credit box and ample capital and liquidity.

由於這些原因，再加上我之前討論過的強勁的新品牌成長，儘管經濟存在不確定性，我們仍願意維持 2025 年投資組合至少成長 10% 的指導。在某些方面，從信貸表現和成長角度來看，我們認為我們有能力應對任何經濟環境。鑑於我們現有的嚴格信貸條件和充足的資本和流動性，我們已經以強勢地位進入了這個信貸不確定時期。

We also believe that our economic markers, including wage growth, the number of open jobs, the unemployment rate, and the direction of inflation, are favoring our customers and that our customers tend to be resilient and agile. Of course, we'll continue to monitor developments closely and make adjustments to our growth and underwriting strategies in a way that will optimize returns.

我們也相信，我們的經濟指標（包括薪資成長、空缺職位數量、失業率和通貨膨脹方向）對我們的客戶有利，而且我們的客戶往往具有彈性和敏捷性。當然，我們將繼續密切關注事態發展，並調整我們的成長和承保策略，以優化回報。

I spent some time on our last earnings call discussing portfolio growth and how we strategically assess the balance between growth and net income in the short and long term. In light of the net income drag created by CECL provisioning associated with loan growth, which we often refer to internally as the growth effect, we believe that the true capital generating power of business is not always readily apparent.

我在上次收益電話會議上花了一些時間討論投資組合成長以及我們如何從策略上評估短期和長期成長與淨收入之間的平衡。鑑於與貸款成長相關的 CECL 撥備造成的淨收入拖累（我們在內部經常稱之為成長效應），我們認為企業真正的資本產生能力並不總是顯而易見的。

As a result, one way that we incentivize our team to engage our success in profitably growing our business is by evaluating our growth in pre-provision net income. Another metric we use to measure our success is our amount of capital generation, which is in many ways similar to the pre-provision net income metric.

因此，我們激勵團隊參與業務獲利性成長的一種方式是評估撥備前淨收入的成長。我們用來衡量成功的另一個指標是資本創造量，它在許多方面與撥備前淨收入指標相似。

We define pre-provision net income as net income, excluding the tax effective impact of the provision for credit losses, but including the impact of recognized net credit losses. We closely track our pre-provision net income because the metric enables us to look past the net income drag created by portfolio growth.

我們將撥備前淨收入定義為淨收入，不包括信用損失準備的稅務實際影響，但包括已確認的淨信用損失的影響。我們密切追蹤撥備前淨收入，因為該指標使我們能夠忽略投資組合成長造成的淨收入拖累。

The net income drag or growth effect is due to the CECL requirement that we reserve for expected lifetime credit losses at the origination of each loan, even though the revenue and profits generated by each loan are recognized over time in the future.

淨收入拖累或成長效應是由於 CECL 要求我們在每筆貸款發放時為預期終身信貸損失預留，即使每筆貸款產生的收入和利潤在未來一段時間內得到確認。

In terms of capital generation, we define total capital as our stockholders' equity plus our allowance for credit losses. Our total capital is, of course, reduced by the amount of capital returned to our shareholders through our dividend and stock repurchase programs. For that reason, we calculate capital generation by summing the change in our capital position and the amount of capital returned to shareholders for any given period.

在資本生成方面，我們將總資本定義為股東權益加上信用損失準備金。當然，我們的總資本會減少透過股利和股票回購計畫返還給股東的資本金額。因此，我們透過將資本狀況的變化與特定時期內返還給股東的資本金額相加來計算資本產生量。

As demonstrated on slide 13 of the supplement, our company generates a significant amount of capital that we're able to both invest in our future and return to our shareholders. We generated $9.9 million of total capital in the first quarter, and since the beginning of 2020, we've generated total capital of $339 million or 1.3 times our beginning 2020 stockholders equity.

正如補充文件第 13 張投影片所示，我們公司產生了大量資本，我們既可以投資未來，也可以將其回饋給股東。我們在第一季創造了 990 萬美元的總資本，自 2020 年初以來，我們已創造 3.39 億美元的總資本，相當於 2020 年初股東權益的 1.3 倍。

Over that time period, our total capital and capital return have increased at a CAGR of 13%, and we've averaged the annual capital generation as a percentage of stockholders' equity of 21% despite the inflationary environment. We've also returned $161 million of capital to our shareholders since the beginning of 2020. We're very pleased with our company's ability to generate capital, particularly in a challenging economic environment, and we expect to continue to highlight our capital generation in future quarters as we accelerate our portfolio growth.

在此期間，我們的總資本和資本回報率以 13% 的複合年增長率增長，儘管通膨環境嚴峻，但我們年平均資本創造量佔股東權益的百分比仍達到 21%。自 2020 年初以來，我們也向股東返還了 1.61 億美元的資本。我們對公司創造資本的能力感到非常滿意，特別是在充滿挑戰的經濟環境中，隨著我們加快投資組合成長，我們預計未來幾季將繼續強調我們的資本創造能力。

Finally, I'll close with a brief regulatory update. As you know, we consented last year to CFPB supervision for a two year period ending in January 2026. We cooperated fully with the CFPB throughout this examination process, and we were pleased to be notified earlier this month that the CFPB has closed its examination of us without any adverse findings. We believe this result is appropriately reflective of our strong compliance management system and culture.

最後，我將以簡短的監管更新來結束。如您所知，我們去年同意接受 CFPB 監管，為期兩年，至 2026 年 1 月結束。在整個審查過程中，我們與消費者金融保護局 (CFPB) 進行了充分合作，並於本月初收到通知，我們很高興得知，CFPB 已結束對我們的審查，且未發現任何不利結果。我們相信這項結果恰當地反映了我們強大的合規管理體系和文化。

We of course look forward to continuing our cooperation with the CFPB and other federal and state regulators as we work to provide attractive, safe, and compliant financial products to our valued customers. I'll now turn the call over to Harp, who will provide more detail on our first quarter results and guidance for the second quarter.

我們當然期待繼續與消費者金融保護局以及其他聯邦和州監管機構合作，努力為我們尊貴的客戶提供有吸引力、安全且合規的金融產品。現在我將電話轉給哈普，他將提供有關我們第一季業績和第二季指引的更多詳細資訊。

Thank you, Rob and hello, everyone. I'll now take you through our first quarter results in more detail and provide you with an outlook for the second quarter of 2025. On page 4 of the supplemental presentation, we provide our first quarter financial highlights. As Rob noted, we posted net income of $7 million and diluted earnings per share of $0.70, directly in line with our guidance but lower than the first quarter of 2024 due to the benefit in the prior year period of the fourth quarter 2023 special loan sale. Our results continue to be supported by our solid portfolio and revenue growth, healthy credit profile, expense discipline, and a strong balance sheet.

謝謝你，羅布，大家好。現在，我將向您更詳細地介紹我們第一季的業績，並為您提供 2025 年第二季的展望。在補充報告的第 4 頁，我們提供了第一季的財務亮點。正如 Rob 所指出的，我們的淨收入為 700 萬美元，每股攤薄收益為 0.70 美元，與我們的預期一致，但低於 2024 年第一季度，原因是去年同期 2023 年第四季特別貸款出售的收益。穩健的投資組合和收入成長、健康的信用狀況、嚴格的支出紀律以及強勁的資產負債表繼續支撐著我們的業績。

Turning to page 5. We only modestly liquidated our portfolio in the quarter, despite the first quarter typically being the seasonally softest quarter for originations. This is thanks to our efforts to grow in newly opened branches and lean back into growth across our network, with new originations continuing to focus on our higher margin and auto secured segments. From a risk standpoint, we continue to originate roughly 60% of our loans to applicants in our [top two risk ranks].

翻到第 5 頁。儘管第一季通常是貸款發放最淡的季度，但我們在本季度僅適度清算了我們的投資組合。這要歸功於我們努力在新開設的分支機構中實現成長，並重新依靠整個網路的成長，而新分支機構繼續專注於我們利潤率更高的汽車擔保領域。從風險角度來看，我們繼續向貸款申請人發放約 60% 的貸款。[風險排名前兩位]。

Total originations reached record levels for the first quarter and were up 20% year-over-year, with branch direct mail and digital originations up 17%, 18%, and 46% respectively from the prior year period. As we mentioned last quarter, barring any meaningful macroeconomic headwinds, we expect our pace of growth to increase for the rest of the year due to our confidence in our credit performance and our ability to generate growth in new markets without opening up the credit box.

第一季總發起量達到創紀錄水平，較去年同期成長 20%，其中分行直效郵件和數位發起量分別比去年同期成長 17%、18% 和 46%。正如我們上個季度提到的那樣，除非出現任何重大的宏觀經濟逆風，否則我們預計今年剩餘時間內的成長速度將會加快，因為我​​們對信貸表現充滿信心，並且有能力在不開放信貸限制的情況下在新市場中實現成長。

Page 6 displays our portfolio growth and product mix through the first quarter. We closed the quarter with net finance receivables of $1.9 billion, up $146 million year over year. Our auto secured portfolio at the end of the quarter represents 12% of our total portfolio, up from 9% at the end of the first quarter of 2024. Our small loan portfolio increased to 11% year over year, and at the end of the quarter, approximately 18% of our portfolio carried an APR greater than 36%, up from 16% a year ago.

第 6 頁展示了我們第一季的投資組合成長和產品組合。本季末，我們的淨融資應收款為 19 億美元，年增 1.46 億美元。截至本季末，我們的汽車擔保投資組合占我們總投資組合的 12%，高於 2024 年第一季末的 9%。我們的小額貸款組合年增至 11%，截至本季末，約有 18% 的貸款組合的 APR 超過 36%，高於去年的 16%。

As Rob has consistently noted, we like the results we're seeing from our barbell strategy of growth in our high quality, auto secured portfolio and higher margin, small loan portfolio. While the growth in our higher margin small loan book has an impact on our total portfolio credit performance, the impact is mitigated by the growth in our auto-secured book, which remains the best performing segment in our portfolio.

正如羅布一直指出的那樣，我們對我們的槓鈴策略所帶來的高品質、汽車擔保投資組合和高利潤、小額貸款投資組合的成長結果感到滿意。雖然我們高利潤小額貸款帳簿的成長對我們的整體投資組合信貸表現產生了影響，但這種影響因我們的汽車擔保帳簿的成長而得到緩解，汽車擔保帳簿仍然是我們投資組合中表現最好的部分。

At the end of the quarter, auto secured had a 30 plus day delinquency rate of 1.7% and the lowest credit losses of all of our products. Though our higher margin portfolio is down sequentially due to pay downs from the strong tax season, we'll continue to pursue our barbell strategy in a measured way moving forward.

在本季末，汽車擔保貸款的 30 天以上拖欠率為 1.7%，是我們所有產品中信用損失最低的。儘管由於稅收旺季的支出減少，我們的高利潤投資組合環比下降，但我們將繼續以有節制的方式推行我們的槓鈴策略。

Looking ahead to the second quarter, we anticipate our ending net receivables to be up roughly $55 million to $60 million sequentially compared to a $29 million sequential increase in the second quarter of 2024 due to normal seasonal growth across our network following tax season and from growth in our newly opened branches. We expect our average net receivables to be up roughly $15 million sequentially as our second quarter growth is seasonally weighted towards the back half of the quarter.

展望第二季度，我們預計期末淨應收帳款將環比增長約 5500 萬美元至 6000 萬美元，而 2024 年第二季度的環比增長為 2900 萬美元，這歸因於稅收季節後我們整個網絡的正常季節性增長以及新開設分支機構的增長。我們預計，由於第二季的成長受季節因素的影響，主要集中在本季後半段，因此平均淨應收帳款將季增約 1500 萬美元。

As the year progresses, we will take further advantage of seasonally higher consumer demand to drive quality portfolio growth. However, we'll remain selective in approving borrowers while continuing to monitor the economy, and as always, we'll focus on originating loans that maximize our margins and bottom line results.

隨著時間的推移，我們將進一步利用季節性較高的消費需求來推動優質投資組合的成長。然而，在繼續監測經濟的同時，我們將繼續選擇性地批准借款人，並且一如既往，我們將專注於發放能夠最大限度提高利潤率和底線績效的貸款。

Turning page 7. Total revenue grew to $153 million in the first quarter, up 6% from the prior year period, or 7.4% when adjusted for loan sale revenue benefits in the first quarter of last year. Our total revenue yield and interest and fee yield were 32.4% and 28.9% respectively, each up slightly from the prior year period after adjusting for loan sale benefits from the prior year period.

翻到第 7 頁。第一季總營收成長至 1.53 億美元，比去年同期成長 6%，調整去年第一季的貸款銷售收入收益後成長 7.4%。我們的總收入收益率和利息及費用收益率分別為 32.4% 和 28.9%，在調整去年同期的貸款銷售收益後，均比去年同期略有上升。

Total revenue yield was down 100 basis points sequentially due to seasonally higher revenue reversals from net credit losses, lower revenue acceleration from seasonally lower refinancing activities. And the 20 basis point benefit in the prior quarter from the release of personal property insurance reserves related to hurricane activity. In the second quarter, we expect total revenue yield to rise by roughly 20 basis points sequentially consistent with seasonal patterns.

總收入收益率較上季下降 100 個基點，原因是季節性淨信用損失導致收入逆轉增加，以及季節性再融資活動減少導致收入加速度降低。上一季因颶風活動而釋放的個人財產保險儲備金帶來了 20 個基點的收益。在第二季度，我們預計總收益率將環比上升約 20 個基點，與季節性模式一致。

Moving to page 8, our portfolio continues to perform well. Our 30 plus day delinquency rate to the quarter end with 7.1%. 60 basis points better sequentially and flat year over year, despite an estimated 10 basis point negative impact from growth in our higher margin portfolio and another 10 basis point negative impact related to 2024 hurricane activity.

翻到第 8 頁，我們的投資組合持續表現良好。截至本季末，我們的拖欠率已超過 30 天，為 7.1%。儘管我們利潤率較高的投資組合的成長預計會產生 10 個基點的負面影響，並且與 2024 年颶風活動相關的負面影響也會產生 10 個基點，但環比增長 60 個基點，同比持平。

Our net credit losses of $58.4 million were better than our outlook by $1.6 million. When excluding the loan sale benefit of 270 basis points in the prior year period, our annualized net credit loss rate of 12.4% in the first quarter of this year was 90 basis points better year over year, despite a 30 basis point negative impact from our higher margin portfolio. As we've discussed in the past, the higher yields on this portfolio more than make up for the credit drag, resulting in overall improved margins.

我們的淨信貸損失為 5,840 萬美元，比我們的預期高出 160 萬美元。若不計入去年同期的 270 個基點的貸款銷售收益，今年第一季我們的年化淨信貸損失率為 12.4%，年減 90 個基點，儘管我們的高利潤率投資組合帶來了 30 個基點的負面影響。正如我們過去所討論過的，該投資組合的較高收益率足以彌補信貸拖累，從而提高整體利潤率。

In the second quarter, we expect our delinquency rate to gradually improve due in part to the seasonal benefit of payments generated by tax refunds in April. We anticipate that our net credit losses will be approximately $57 million in the second quarter or a net credit loss rate of approximately 12%.

在第二季度，我們預計我們的拖欠率將逐步改善，部分原因是四月退稅產生的付款的季節性效益。我們預計第二季的淨信用損失約為 5,700 萬美元，淨信用損失率約為 12%。

Second quarter net credit losses will include $1.6 million of losses associated with the 2024 hurricane event, impacting our net credit loss rate by 40 basis points in the quarter. We're fully reserved for these hurricane losses as of the end of the first quarter. Excluding the hurricane impact, we expect our second quarter net credit loss rate to be 80 basis points better sequentially and 110 basis points better than the second quarter of last year.

第二季淨信用損失將包括與 2024 年颶風事件相關的 160 萬美元損失，這將導致本季淨信用損失率上升 40 個基點。截至第一季末，我們已為颶風造成的損失做好了充分的準備。排除颶風的影響，我們預計第二季淨信貸損失率將比上一季下降 80 個基點，比去年第二季下降 110 個基點。

Turning to page 9. Our first quarter allowance for credit loss reserve rate remained steady at 10.5%. We decreased our reserve slightly in the quarter to $199.1 million, primarily due to our small portfolio liquidation. We're comfortable with our reserve levels despite the recent economic uncertainty. We've consistently reflected a higher stress downside scenario in our model, and the weighted average unemployment rate embedded in our model for the end of 2025 is 5.2%.

翻到第 9 頁。我們第一季的信用損失準備率維持穩定在10.5%。本季度，我們的儲備金略微減少至 1.991 億美元，這主要是由於我們的小額投資組合清算。儘管最近經濟不確定，但我們對我們的儲備水平感到滿意。我們的模型始終反映出更高的壓力下行情景，我們模型中嵌入的 2025 年底加權平均失業率為 5.2%。

Looking to the second quarter, subject to economic conditions and portfolio performance, we expect our reserve rate to decline to 10.3% at the end of the quarter due to the release of the remaining special hurricane reserves against the associated net credit losses.

展望第二季度，受經濟狀況和投資組合表現的影響，我們預計，由於釋放剩餘的特別颶風儲備金來抵消相關的淨信貸損失，我們的儲備率將在本季度末下降至 10.3%。

Flipping to page 10, we continue to closely manage our spending while investing in our growth capabilities and strategic initiatives. Our G&A expenses of $66 million in the first quarter were $5.6 million higher than the prior year period. The increase was primarily driven by $1.7 million of incentive expenses shifting from the second quarter to the first quarter and by investment and growth, which included $1.9 million of expenses associated with 17 new branches opened within the past year and roughly $600,000 of incremental marketing expenses in legacy markets.

翻到第 10 頁，我們繼續密切管理我們的支出，同時投資我們的成長能力和策略性舉措。我們第一季的一般及行政費用為 6,600 萬美元，比去年同期高出 560 萬美元。成長的主要原因是從第二季轉移到第一季的 170 萬美元激勵費用以及投資和成長，其中包括去年開設的 17 家新分公司相關的 190 萬美元費用，以及傳統市場的約 60 萬美元增量行銷費用。

First quarter G&A expense was higher than our guidance due to the incentive expense timing. Our annualized operating expense ratio was 14% in the first quarter, 30 basis points higher than the prior year period, but 10 basis points better year over year after adjusting for the incentive expense timing, despite our new branch openings and increased marketing spent. The 17 new branches had $3.6 million of revenue in the quarter against $1.9 million of G&A expense, further demonstrating the power of our branch-based model.

由於激勵費用的時間安排，第一季的 G&A 費用高於我們的預期。我們第一季的年化營業費用率為 14%，比去年同期高出 30 個基點，但儘管我們開設了新分行並增加了行銷支出，但在調整激勵費用時間後，同比下降了 10 個基點。本季度，這 17 家新分公司的收入為 360 萬美元，而一般及行政費用為 190 萬美元，進一步證明了我們基於分支機構的模式的威力。

In the second quarter, we expect G&A expenses to be roughly $65.5 million. We continue to invest in growth in our strategic initiatives, and we're experiencing increased expenses from servicing a larger number of accounts. Moving forward, we'll continue to carefully manage expenses while also investing in our core business in ways that improve our operating efficiency over time and ensure our long-term success and profitability.

我們預計第二季的一般及行政費用約為 6,550 萬美元。我們繼續在策略計劃的成長上進行投資，並且由於服務大量帳戶，我們的費用也在增加。展望未來，我們將繼續謹慎管理開支，同時投資於我們的核心業務，以提高我們的營運效率並確保我們的長期成功和獲利能力。

Turning to the pages 11 and 12. our interest expense for the first quarter was $19.8 million or 4.2% of average net receivables on an annualized basis, better than our outlook on lower average debt and lower fees. At the end of the quarter, we closed a $265 million asset-backed securitization transaction at a weighted average coupon of 5.3%, comparable to our prior ABS deal and a 90 basis poin improvement from our second quarter 2024 deal. This transaction once again demonstrates the strength of our ABS platform.

翻到第 11 和 12 頁。我們第一季的利息支出為 1,980 萬美元，佔年平均淨應收帳款的 4.2%，優於我們對較低平均債務和較低費用的預期。在本季末，我們完成了價值 2.65 億美元的資產支持證券化交易，加權平均票面利率為 5.3%，與我們先前的 ABS 交易相當，比我們 2024 年第二季的交易提高了 90 個基點。此次交易再次證明了我們ABS平台的實力。

As of March 31, 90% of our debt was fixed rate with a weighted average coupon of 4.4% and a weighted average revolving duration of 1.4 years. In the second quarter, we expect interest expense to be approximately $21 million or 4.4% of average net receivables. As a reminder, as our lower fixed rate funding matures and we continue to grow using variable rate [debt], our interest expense will increase as a percentage of average net receivable.

截至 3 月 31 日，我們的 90% 債務為固定利率，加權平均票面利率為 4.4%，加權平均循環期限為 1.4 年。在第二季度，我們預計利息支出約為 2,100 萬美元，佔平均淨應收帳款的 4.4%。提醒一下，隨著我們較低的固定利率融資到期，並且我們繼續使用浮動利率[債務]進行增長，我們的利息支出將佔平均淨應收帳款的百分比增加。

In addition, our balance sheet remains strong, and we continue to maintain ample liquidity to fund our growth. We had $641 million of total unused capacity and $129 million of available liquidity as of quarter end. We also had nearly $200 million of lifetime loan loss reserves, as well as $358 million of stockholders' equity, or approximately $35.48 in book value per share. We will continue to maintain a strong balance sheet with ample liquidity and borrowing capacity, diversified in staggered funding sources, and a sensible interest rate management strategy.

此外，我們的資產負債表依然強勁，我們持續保持充足的流動性來資助我們的成長。截至季末，我們共有 6.41 億美元的未使用容量和 1.29 億美元的可用流動資金。我們還擁有近 2 億美元的終身貸款損失準備金，以及 3.58 億美元的股東權益，或每股帳面價值約為 35.48 美元。我們將繼續維持強勁的資產負債表，充足的流動性和借貸能力，多元化的分階段融資來源，以及合理的利率管理策略。

On the income tax line, we incurred an effective tax rate of 23.5% in the first quarter, and for the second quarter of 2025, we expect an effective tax rate of approximately 24.5% prior to discrete items. On the bottom line, we expect that our second quarter net income will be roughly $7 million to $7.3 million reflecting the impact of our increased portfolio growth on the provision for credit loss line.

在所得稅方面，我們在第一季的實際稅率為 23.5%，而對於 2025 年第二季度，我們預計扣除單獨項目前的實際稅率約為 24.5%。總的來說，我們預計第二季淨收入將在 700 萬美元至 730 萬美元左右，這反映了我們投資組合成長對信貸損失準備金的影響。

As we discussed on our last earnings call, subject to the economic backdrop, we expect to meaningfully increase net income in 2025, with the timing of 2025 net income being back and weighted as we benefit in the second half of the year on the revenue line from a larger portfolio size and on the credit and revenue line from seasonally lower net credit losses.

正如我們在上次收益電話會議上所討論的那樣，受經濟背景的製約，我們預計 2025 年的淨收入將大幅增加，2025 年淨收入的時間將回溯和加權，因為我們在下半年將從更大的投資組合規模中獲得收入，並從季節性較低的淨信貸損失中獲得信貸和收入。

Aside from investing in our growth and strategic initiatives, we continue to allocate excess capital to our dividends and $30 million share repurchase programs. Our Board of Directors declared a dividend of $0.30 per common share for the second quarter. The dividend will be paid on June 11, 2025 to shareholders of record as of the close of business on May 21, 2025.

除了投資我們的成長和策略計畫外，我們還繼續將多餘的資本分配給我們的股息和 3,000 萬美元的股票回購計畫。我們的董事會宣布第二季每股普通股股利 0.30 美元。股利將於 2025 年 6 月 11 日支付給 2025 年 5 月 21 日營業結束時登記在冊的股東。

Pursuant to our buyback program, we repurchased approximately 187,000 shares of our common stock in the first quarter at a weighted average price of $34.56 per share. Finally, I'll note that we provide a summary of our second quarter 2025 guidance on page 14 of our earnings supplement.

根據我們的回購計劃，我們在第一季以每股 34.56 美元的加權平均價格回購了約 187,000 股普通股。最後，我要指出的是，我們在收益補充報告的第 14 頁提供了 2025 年第二季指引的摘要。

That concludes my remarks. I'll now turn the call back over to Rob.

我的發言到此結束。我現在將電話轉回給 Rob。

Thanks, Harp. As always, I'd like to recognize the Regional team for their excellent work and dedication in serving our customers and generating capital for our shareholders. We're off to a strong start in 2025, having posted solid bottom line results in the first quarter while also holding the line on portfolio liquidation.

謝謝，哈普。像往常一樣，我要表彰區域團隊在服務客戶和為股東創造資本方面所做的出色工作和奉獻精神。2025 年我們開局強勁，第一季取得了穩健的獲利業績，同時維持了投資組合清算的水平。

Looking ahead, we're excited to enter a period of seasonally higher loan demand and more normalized portfolio growth, but we will, of course, carefully monitor economic conditions and adjust our strategies where appropriate. As always, we'll manage the business prudently and in a way that appropriately balances portfolio growth and credit risk, as well as short and long term capital generation and returns for our shareholders.

展望未來，我們很高興進入季節性貸款需求增加和投資組合成長更加正常化的時期，但我們當然會密切關注經濟狀況並在適當的時候調整我們的策略。像往常一樣，我們將謹慎地管理業務，適當平衡投資組合成長和信用風險，以及短期和長期資本創造和股東回報。

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

再次感謝您的時間和關注。我現在開始回答問題。接線員，您可以接通線路嗎？

(Operator Instructions)

（操作員指示）

Kyle Joseph, Stephens Inc.

凱爾約瑟夫（Kyle Joseph），斯蒂芬斯公司

Hey, good afternoon guys. Thanks for taking my questions. Just want to get a sense for kind of the longer term outlook on NIM. Appreciate the guide you gave for the second quarter, but talk about some of the kind of puts and takes to both the cost of funds and the [yield size] for us if you don't mind.

嘿，大家下午好。感謝您回答我的問題。只是想了解 NIM 的長期前景。感謝您為第二季度提供的指導，但如果您不介意的話，請談談對資金成本和[收益規模]的一些影響。

So on the cost of funds, it's Harp. So on the cost of funds, we've said that as our fixed rate funding, which is currently at 90% at the end of the quarter, but as our fixed rate funding from prior years matures, that you will see cost of funds go up. Our pricing in terms of where we are, you'll see seasonal fluctuations of that, but we did make some pricing changes and you're seeing that most of those are fully in the portfolio.

因此，就資金成本而言，是 Harp。因此，關於資金成本，我們已經說過，我們的固定利率融資在本季末目前為 90%，但隨著前幾年的固定利率融資到期，您會看到資金成本上升。就我們的定價而言，您會看到季節性波動，但我們確實做了一些價格調整，而且您會發現其中大部分都已完全納入投資組合。

What I would take into account though is, we talked a lot about our higher margin, higher rate business. So I would take that into account and then you have to balance that with our barbell strategy where we do auto secured loans which have lower yields, but of course have lower net credit losses as well.

不過，我要考慮的是，我們討論了很多有關更高利潤、更高利率的業務。所以我會考慮到這一點，然後你必須用我們的槓鈴策略來平衡這一點，我們提供的汽車擔保貸款收益率較低，但淨信貸損失當然也較低。

Yeah, and Kyle, I'll just add as you think through the rest of the year beyond the second quarter, very much, where yields go will depend on any adjustments we want to make to the underwriting side, depending on how macro conditions unfold. So, a little hard to predict, at this point in time where you may tighten or not. So I think that's kind of the best direction we can give you at this point.

是的，凱爾，我想補充一點，當你思考第二季度之後的剩餘時間時，收益率的走向將取決於我們對承保方面所做的任何調整，取決於宏觀條件如何發展。因此，目前很難預測何時會收緊或不會收緊。所以我認為這是我們目前能給你的最好的指導。

Got it and that's a good segue to my next question. I mean just asking. I mean you guys obviously have a broad-based portfolio to see if you -- any signs of consumer behavior changes really since the end of end of February or mid-late February, whether it's on the demand side, and or on the payment credit side, recognizing there's a lot of moving parts in the first quarter as well with tax refunds and everything and so it might be hard to to parcel out.

明白了，這很好地引出了我的下一個問題。我只是問問而已。我的意思是，你們顯然有一個廣泛的投資組合，可以看看自 2 月底或 2 月中下旬以來消費者行為是否有任何變化的跡象，無論是在需求方面，還是在支付信貸方面，都認識到第一季度有很多活動部分，還有退稅等等，所以可能很難分割。

Yeah, it really is hard, but I will tell you that, our front book and credit results are tracking, as expected. All the months on book's performing well, also seeing our roll rates performing as expected. I think the tax season was relatively strong, and we saw higher payment rates, particularly on the paydown of the higher rate small loans which is pretty typical.

是的，這確實很難，但我可以告訴你，我們的前帳簿和信貸結果正如預期的那樣。所有月份的帳簿表現都很好，我們的滾動率也表現符合預期。我認為稅收季節相對強勁，我們看到了更高的支付率，特別是高利率小額貸款的償還，這是相當典型的。

We're watching the consumer closely. We're looking at all economic metrics we look at, and obviously the best indication is how our consumers are performing on us. We are -- we take as a positive that there's still, 7.5 million open jobs, and that's going to be disproportional to the lower income cohorts. There's still real wage growth for our customers. I think the inflation picture is, where there's uncertainty, and, I think part of that depends on where things land on tariffs in the next couple of months.

我們正在密切關註消費者。我們正在關注所有經濟指標，顯然最好的指標就是我們的消費者對我們的表現如何。我們認為積極的一面是，仍有 750 萬個空缺職位，而且這對低收入群體來說是不成比例的。我們的客戶的工資仍然實際增長。我認為通膨情況存在不確定性，而且我認為這部分取決於未來幾個月關稅的走向。

Clearly our customers are -- they're not as impacted by discretionary spend. So having, oil prices down is good. I think we'll have to see where, food prices go and the like. But on balance, the customers are -- seem to be holding up well and as I said, the prepared remarks, I mean, if we do enter a downturn, And I'm not saying this is -- because you don't know what the severity of that downturn could be, but having tightened our credit box for over two years, is certainly different than entering a typical cycle where you're tightening in reaction to macro events. So that should lessen the severity of what may or may not happen.

顯然，我們的客戶並沒有受到自由支配支出的影響。因此，油價下跌是好事。我認為我們必須看看食品價格的走向等等。但總的來說，客戶似乎表現良好，正如我所說的，準備好的發言，我的意思是，如果我們真的進入衰退期，我並不是說這是——因為你不知道衰退的嚴重程度，但是我們已經收緊了信貸條件兩年多，這肯定不同於進入一個典型的周期，在典型的周期中，我們會對宏觀事件做出反應而收緊信貸。因此這應該會減輕可能發生或不發生的事情的嚴重性。

So we're just watching everything closely and, what we can pivot quickly, and tighten the risk. So, we're prepared to do so if needed.

因此，我們只是密切關註一切，並快速調整方向，降低風險。因此，如果需要的話，我們已經做好準備。

Got it. I appreciate the call. Thanks for taking my questions.

知道了。我很感謝你的來電。感謝您回答我的問題。

(Operator Instructions)

（操作員指示）

David Scharf, Citizens Capital.

公民資本公司的戴維‧沙夫 (David Scharf)。

Hi, good afternoon. Thanks for taking my questions, Rob and Harp. Hey, I had a couple of specific, things I wanted to ask about, but before that, just a very, very general question, and if it's a -- it could be just a yes or no response. But setting aside the policy trade uncertainty that's ensued over the last month, if we just sort of put that to the sidelines for now, Rob, is there anything new on this call versus three months ago that you're aiming to communicate to investors, or is it pretty much all the same kind of fundamentals and drivers and cadences that you provided on your year end call?

嗨，下午好。感謝 Rob 和 Harp 回答我的問題。嘿，我有幾個具體的事情想問，但在此之前，只是一個非常非常籠統的問題，如果是 - 它可能只是一個是或否的回答。但是，拋開上個月出現的政策貿易不確定性，如果我們暫時將其放在一邊，羅布，與三個月前相比，這次電話會議中您是否有什麼新內容要傳達給投資者，還是與您在年終電話會議上提供的基本面、驅動因素和節奏基本相同？

Well, I think there's three things, and you're going to take away my closing comments by this, David. So thank you. May -- keep me from having to do those. But, I think first and foremost, credit came in better than our guidance by $1.6 million in the quarter. And, as you heard me just say, we're seeing consistent improvement in loss performance across all our months on books and our roll rates. So, that's encouraging. And as we look ahead to the second quarter, sequentially, we're looking to be down to 80 basis points on the NCL rate. Now that's, excluding 40 basis points from the impact of Hurricane Helene, which as Harp said, was fully reserved.

好吧，我認為有三件事，大衛，你將會因此而失去我的結論性評論。所以謝謝你。可能——讓我不必做這些。但我認為，首先，本季的信貸額比我們的預期高出 160 萬美元。而且，正如您剛才聽到的，我們看到所有月份的帳面損失表現和滾動率都在持續改善。這令人鼓舞。展望第二季度，我們預計 NCL 利率將持續下降至 80 個基點。現在，排除颶風海倫的影響，40 個基點，正如哈普所說，這是完全保留的。

So I think, on the credit front, to this point in time, we're seeing things continue to improve. I think the second thing that I would highlight is, we opened up 15 branches since September. Now, that's the largest block of branches we've opened in the last two years when -- because of the high inflation in period warranted us, kind of pausing any meaningful branch expansion. And these branches are performing, ahead of our expectations, with a tighter risk box than the rest of the network. And we're seeing positive pre-provision, net income at month three.

因此我認為，就信貸方面而言，到目前為止，我們看到情況正在持續改善。我想強調的第二件事是，自 9 月以來我們開設了 15 家分行。現在，這是我們在過去兩年中開設的最大規模的分支機構，由於當時的高通貨膨脹率，我們不得不暫停任何有意義的分支機構擴張。這些分支機構的表現超出了我們的預期，其風險控制比網路的其他部分更為嚴格。我們看到第三個月的撥備前淨收入為正。

So, look, we're going to continue to evaluate the performance of these branches in the second quarter. We don't have any branches, assumed in the 10% ENR growth that we have given as a minimum for a full year. And we'll gauge the performance of these branches for another quarter. We'll look at what's happening on the macro front in the tariff side, and then evaluate, our future growth plans. But, just, getting back into growing these branches, is really showing the power there.

所以，我們將在第二季繼續評估這些分公司的表現。我們沒有任何分支機構，假設我們給出的全年最低 ENR 成長率為 10%。我們將評估這些分支機構下個季度的表現。我們將關注關稅方面的宏觀形勢，然後評估我們未來的成長計劃。但是，只要重新生長這些樹枝，就能真正展現出其威力。

And then lastly, we put in a new slide on the business' ability to, generate capital. It's a proven model, and, if you look back to the beginning of 2020, I think we generated $339 million of capital for shareholders. We've returned a substantial amount to shareholders. And if you look at the average capital generation over the average shareholder equity over that period of time, it's at 21%.

最後，我們新增了一張有關企業創造資本能力的新投影片。這是一個經過驗證的模式，如果回顧 2020 年初，我認為我們為股東創造了 3.39 億美元的資本。我們已向股東返還了大量資金。如果你看一下那段期間內平均資本產生率與平均股東權益之比，你會發現這一比例為 21%。

So, I think that we are positioned well regardless of what happens going forward, and we have all the opportunities to grow and achieve greater bottom line results in the coming quarters and years, notwithstanding anything from a macro standpoint that might cause us to alter that strategy to some degree.

因此，我認為無論未來發生什麼，我們都處於有利地位，並且我們有機會在未來幾個季度和幾年內實現增長並取得更大的盈利，儘管從宏觀角度來看，某些因素可能會導致我們在一定程度上改變這一戰略。

Great. I appreciate all the, all that color and you actually foreshadowed. Kind of one of my specific questions just wanted to get clarification on the capital generation, kind of calculation that you provided on on slide 13. And in particular, as I read it looks like the capital [gen] in the first quarter was $9.9 million. And if I annualize that, it's notably below kind of pretty much all the prior years except one. Is there something seasonally about Q1 that depresses capital generation usually or was it just more investment in branches if you can just provide a little color around that figure.

偉大的。我很欣賞所有這些色彩以及你實際上所預示的一切。我的一個具體問題是想澄清一下您在第 13 張投影片中提供的資本產生計算方法。具體來說，據我了解，第一季的資本[gen]為 990 萬美元。如果我將其按年計算，那麼除了一年以外，其他年份的成長率都明顯低於前幾年。Q1 是否存在一些季節性因素，通常會抑制資本生成，或者僅僅是分支機構的投資增加，如果您可以提供一些關於該數字的詳細信息的話。

Yeah, so it was actually. It's Harp. It was actually a number of things. So our net income is lowest in first quarter. And as we've said in the prepared remarks, right, we expect that to increase as the year goes on as you have lower NCLs and you have higher revenue from the loans that will generate throughout the year. So it's a component of that. You will see that the allowance is currently at a 10.5% reserve rate. The allowance will increase as we put on more balances, but I guided to in the second quarter the reserves will go to 10.3% after the release of the hurricane reserves.

是的，事實確實如此。是豎琴。事實上有很多事情。因此我們的淨收入在第一季是最低的。正如我們在準備好的評論中所說的那樣，我們預計隨著時間的推移，這一數字會增加，因為您的不良貸款餘額會減少，而且全年貸款產生的收入也會增加。所以它是其中的一個組成部分。您將看到，目前的配額儲備利率為 10.5%。隨著我們增加餘額，準備金將會增加，但我預計在第二季颶風儲備金釋放後，儲備金將達到 10.3%。

Got it. Helpful. And then, and maybe last question. Regarding just sort of the credit box in the ultimately what things might look like, when there's deemed to be less uncertainty.

知道了。很有幫助。然後，也許是最後一個問題。關於信用箱的最終情況，當不確定性較少時，事情可能會是什麼樣子。

And a prior earnings call competitor, I'll just say it one main, you know they sort of defined credit tightening as applying an additional 30% kind of stress on their loan for each of the loans they've underwritten over the last three years. Meaning they, I guess just in order to approve a loan it it had to meet their return requirements with an additional 30% of stress on top of that. And I'm wondering if you're able to help kind of provide some context for us. And similar to that, just what tightening means, over these last couple of years?

而之前的獲利電話會議競爭對手，我只想說一個主要內容，你知道他們將信貸緊縮定義為對過去三年中他們承銷的每筆貸款額外施加 30% 的壓力。我想這意味著他們為了批准貸款必須滿足他們的回報要求，並且在此基礎上承受 30% 的壓力。我想知道您是否能幫助我們提供一些背景資訊。與此類似，過去幾年的緊縮政策究竟意味著什麼？

Yeah, so we do the same thing in our underwriting where we put a stress factor to make sure that we're delivering attractive bottom line returns. And so we apply a similar -- not the similar number of stress, I'm not going to disclose that because we very much change the stress factor depending on the part of our portfolio. Auto secured business might have a different stress factor than a small loan business, small loan businessless than 36%, or a small loan business that has greater than 36% APR, and vis a vis a large loan customer. There's also different risk ranks.

是的，我們在承保時也做同樣的事情，我們設定了壓力因素，以確保我們提供有吸引力的底線回報。因此，我們應用了類似的——不是類似數量的壓力，我不會透露這一點，因為我們會根據投資組合的部分改變壓力因素。汽車擔保業務的壓力因素可能與小額貸款業務、低於 36% 的小額貸款業務、或年利率高於 36% 的小額貸款業務以及大額貸款客戶的壓力因素不同。風險等級也有不同。

So trying to apply one number across the portfolio is just not how we look at things. We manage business at a very detailed level, individual risk ranks, cohorts, by state, by product type, by distribution channel, whether it's a live check or digital or a branch renewal. So, applying one number across the portfolio is just not appropriate. We apply stress factors depending on the underlying risk of the portfolio.

因此，試圖將一個數字應用於整個投資組合並不是我們看待事物的方式。我們對業務進行非常詳細的管理，包括個人風險等級、群組、按州、按產品類型、按分銷管道，無論是即時檢查、數位檢查或分支機構續訂。因此，在整個投資組合中應用一個數字是不合適的。我們根據投資組合的潛在風險應用壓力因素。

Got it. Great, thanks very much.

知道了。太好了，非常感謝。

Excellent thank you.

非常感謝。

John Rowan, Janney.

約翰羅文、詹妮。

Good afternoon. So I'm going to apologize if you covered this already. I did miss the prepared comments of the call, but so I caught the guidance for 2025 is unchanged for meaningful EPS or net income growth. It was one of those, correct?

午安.因此，如果您已經討論過這個問題，我深表歉意。我確實錯過了電話會議的準備好的評論，但我發現 2025 年的指導對於有意義的每股收益或淨收入增長沒有變化。就是其中之一，對嗎？

Yeah, that's what we said.

是的，我們就是這麼說的。

Okay, and also the greater than 10% portfolio growth, correct?

好的，而且投資組合成長率超過 10%，對嗎？

Yeah, we set a minimum of 10%. We reaffirmed that.

是的，我們設定的最低比例是 10%。我們重申了這一點。

I'm just kind of I'm having a hard time getting to meaningful EPS or net income growth. I mean, first half of the year, and I guess maybe just guide me on to what the right number is to use for Q1 '24, whether or not it was -- whether or not you're using a number that's impacted from the from the loan sales, but EPS just is down 41% year on year.

我只是覺得很難實現有意義的每股盈餘或淨收入成長。我的意思是，今年上半年，我想也許可以指導我使用什麼正確的數字來表示 24 年第一季度的數據，無論它是否 - 無論你使用的數字是否受到貸款銷售的影響，但每股收益同比下降了 41％。

Going into the back half of the year, you're going to have a lot of loan growth to meet that 10% number because you're kind of a decent bit below that through the first, frankly the first half of the year given the Q2 guide. There's a lot of drag from provisioning tied to growth, so I guess maybe help me triangulate how you get to that meaningful EPS growth and given the results that are contemplated in two guide along with 1Q results and whether or not there's reserve releases or something that softens the impact from the provision tied to growth in the back half of the year

進入下半年，貸款將大幅成長才能達到 10% 的目標，因為根據第二季的指南，上半年的貸款成長率比這個數字低很多。與成長相關的撥備存在很大的拖累，所以我想也許可以幫助我分析如何實現有意義的每股收益增長，並考慮到兩份指南中考慮的結果以及第一季度的結果，以及是否有儲備釋放或減輕下半年與增長相關的撥備的影響

We talked a little bit about, where our allowance for credit losses would be in the second quarter. John, I'm not going to give you where it's going to be at the end of the year, but we're at 10.5% in first quarter of '25, and that's going to 10.3%. In the second quarter as we release losses associated with hurricanes, so that's where that's going to go in the second quarter.

我們稍微討論了一下第二季我們的信貸損失準備金是多少。約翰，我無法告訴你今年年底的成長率會達到多少，但 2025 年第一季的成長率為 10.5%，今年預計達到 10.3%。在第二季度，我們將公佈與颶風相關的損失，所以這就是第二季度將要發生的事情。

We guided to net income of somewhere between $7 million to $7.3 million for the second quarter. ENR growth is $55 million to $60 million. Revenue yields will increase. The other thing to keep in mind is that your balances grow through the last three quarters of the year, right. You'll get revenue off of that, of course. Your yield is increasing 20 basis points, quarter over quarter next quarter.

我們預計第二季淨收入將在 700 萬美元至 730 萬美元之間。ENR 的成長額為 5,500 萬美元至 6,000 萬美元。收益收益率將會增加。要記住的另一件事是，您的餘額會在一年最後三個季度增長，對吧。當然，你會從中獲得收入。下個季度，您的收益率將比去年同期增加 20 個基點。

And then the other thing is your. NCLs actually will come down. So we've guided to $57 million or 12% in the second quarter, but we know that NCLs will come down in the latter part of the year. And so those are sort of the dynamics of how we get an increase in net income in the second half of the year.

另一件事是你的。NCL 實際上將會下降。因此，我們預計第二季的 NCL 為 5700 萬美元或 12%，但我們知道 NCL 將在下半年下降。這些就是我們下半年淨收入成長的動力。

Yeah, and the delta for the first quarter of last year was entirely due to the loan sale and the prior year period impacted by, I guess, the fourth quarter loan sale in the quarter before that.

是的，去年第一季的增量完全是由於貸款銷售，而去年同期則受到了前一季第四季度貸款銷售的影響。

I get it, but obviously there's still a decline year over year in the second quarter given the guidance. I guess maybe just to be clear, I just want to make sure so you're got into growth over $41 million of net income reported in 2024 and you're not making an adjustment to the first quarter number for the loan sale, correct?

我明白，但根據指導，第二季的年比數據顯然仍出現下滑。我想也許只是為了清楚起見，我只是想確保你們在 2024 年報告的淨收入增長超過 4100 萬美元，並且你們沒有對第一季的貸款銷售數字進行調整，對嗎？

So the first quarter number, when you look at that year over year, the reason why it is lower in 1Q '25 versus 1Q '24 is basically because of the acceleration of the NCLs from first quarter of '24 into '23. So that is the difference primarily that is driving the year over year variance when you compare '25 to '24.

因此，當您查看第一季的數字時，您會發現 2025 年第一季的數字低於 2024 年第一季的原因主要是因為從 2024 年第一季到 2023 年，NCL 加速成長。因此，當您比較 25 年和 24 年時，這就是導致同比差異的主要原因。

When you look out at the guidance for 2025 versus =- for second quarter of 2025 versus second quarter of 2025, that is a function of the reserves. So it's really a function of where the year over year impact of the reserves from second quarter of '24 versus second quarter of '25.

當您查看 2025 年的指導與 2025 年第二季與 2025 年第二季的指引時，這是儲備的功能。因此，這實際上取決於 2024 年第二季與 2025 年第二季儲備的同比影響。

Yeah, and John, we're not -- our base is $41 million. That's what we're guiding off of.

是的，約翰，我們不是——我們的基礎是 4100 萬美元。這就是我們的指導思想。

Okay, that's why, that's what I need --

好的，這就是我需要的--

Now let's -- I mean, we all know that there's, macro uncertainty out there, but that's what we're guiding off of.

現在讓我們——我的意思是，我們都知道存在宏觀不確定性，但這就是我們的指導依據。

Okay. All right, thank you.

好的。好的，謝謝。

Appreciate it, John.

非常感謝，約翰。

Alexander Villalobos, Jeffries.

亞歷山大·維拉洛沃斯，杰弗里斯。

Hey guys, thank you for taking my question. A lot of the questions, that I had have been answered but did have, if it's any possibility of giving a little bit more guidance on the expense side. i know you guys grew expenses in '24 about 2%. Should we be thinking about around that number or something maybe a little bit higher?

嘿夥計們，謝謝你們回答我的問題。我的許多問題都已經得到解答，但確實存在一些問題，是否有可能在費用方面提供更多指導。我知道你們的支出在 24 年增加了約 2%。我們是否應該考慮這個數字或可能更高一點的數字？

And my second question is maybe a little bit more detail on the consumer. Obviously the consumer is still spending but if there's anything kind of in your data that can tell you how much of it is pulled forward or just the consumer actually within their regular cadence? Thank you.

我的第二個問題可能與消費者更詳細地有關。顯然，消費者仍在消費，但如果您的數據中有任何內容可以告訴您其中有多少是提前消費的，或者只是消費者實際上在其正常節奏內消費？謝謝。

So I'll take the question on the expenses first. So we're not giving full year guidance on the expenses. I did give second quarter guidance in terms of that being around $65.5 million. You will see expenses increase as our loans increase and the variable expenses associated with that increase as well, but as always, we're quite prudent around our expense control, and we'll continue to do that. And help me with the second part of your question.

因此我先回答有關費用的問題。因此，我們不會提供全年的支出指導。我確實給出了第二季度的指導，約為 6550 萬美元。隨著貸款增加，您會看到費用也會增加，與之相關的變動費用也會增加，但與往常一樣，我們對費用控制非常謹慎，我們將繼續這樣做。並幫我解答問題的第二部分。

Yeah, no, just in general like from the other companies from everything from the credit card companies to some of the other lenders, there's the question of the consumer spending how much of it could be just pull forward based on the tariffs or if it's just the consumer truly just within their regular cadence? Thank you.

是的，不，一般來說，就像其他公司一樣，從信用卡公司到其他一些貸款機構，都有一個問題，那就是消費者支出有多少可以根據關稅提前，或者僅僅是消費者真正按照他們的正常節奏支出？謝謝。

Yeah, I don't -- we're not seeing, in the first quarter, and of course there's tax season there, we're not seeing any kind of increased demand that we would look to say. It's accelerated spending for our customer base, that's not something that our customers tend to have the excess, look, excess spending power to do, unlike maybe a prime-based customer. So, I think their behaviors are holding pretty steady. They're meeting their obligations, and that's reflected in our credit. So, that would be my reaction on that.

是的，我沒有看到——在第一季度，當然那裡是納稅季節，我們沒有看到任何我們期望的增加的需求。這會加速我們客戶群的支出，與主要客戶不同，我們的客戶往往沒有多餘的、看起來多餘的消費能力。所以，我認為他們的行為保持相當穩定。他們正在履行自己的義務，這反映在我們的信譽上。這就是我對此的反應。

And the other thing I experience is I'll tell you this, that look, like we do every year, we assess how we're going along in the year and then we have the ability to pivot and put on more, investment and growth for the following year. For example, we added these, 15 branches in the very end of last year going into the first quarter.

我所經歷的另一件事是，就像我們每年所做的那樣，我們評估這一年的發展情況，然後我們有能力調整方向，為下一年投入更多資金，實現成長。例如，我們在去年年底進入第一季時增加了 15 家分店。

And so, we're always looking for opportunities, to invest more, to take advantage of good, proper growth. And those 15 branches that we opened, actually, I go back to the 17 branches we opened since the beginning of the year, I think we [just] in the first quarter, $3.6 million if I got it right Harp, of revenue on about $1.6 million of expenses, so.

因此，我們一直在尋找機會，加大投資，享受良好、適當的成長。我們開設的 15 家分行，實際上，我回顧一下自今年年初以來我們開設的 17 家分行，我認為我們在第一季度的收入為 360 萬美元，如果我沒記錯的話，哈普，支出約為 160 萬美元，所以。

$3.6 million and $1.9 million.

360萬美元和190萬美元。

I'm sorry, $3.6 million and $1.9 million. So you know we're getting a good return on those new branches and so we always reserve the opportunity to lean into growth as we see opportunities, and we'll communicate that accordingly. I think at this point in time, given, kind of just where things may settle out in the coming months on the tariff side, I think we're just -- we're going to evaluate, where things, unfold.

對不起，360 萬美元和 190 萬美元。所以你知道我們從這些新分支機構獲得了良好的回報，因此我們總是保留機會，因為我們看到機會而傾向於增長，我們會相應地進行溝通。我認為，就目前情況而言，考慮到未來幾個月關稅方面的情況可能會有所好轉，我們將對事態的發展進行評估。

But we're keeping a very tight, lid on expenses that aren't associated with growing the business, be that variable cost in support of the portfolio growth or additional marketing or, additional branches. In fact, of the $5.6 million growth in expenses in the first quarter, I mean, we had a timing issue on incentives for $1.7 million, but the bulk of the rest was the increase from new branches and additional marketing and legacy markets.

但是，我們對與業務成長無關的開支進行嚴格控制，無論是支持投資組合成長的變動成本，還是額外的行銷或額外的分行。事實上，在第一季 560 萬美元的支出成長中，我的意思是，我們在 170 萬美元的激勵措施上遇到了時間問題，但其餘大部分是來自新分公司、額外行銷和傳統市場的成長。

So we're not spending additional money in areas other than in pursuit of improved growth and bottom line returns.

因此，除了追求提高成長和底線回報之外，我們不會在其它領域投入額外資金。

Awesome. Thank you for the color.

驚人的。謝謝你的顏色。

Okay.

好的。

Thank you. We have reached the end of the question and answer session. I'd like to turn the floor back to Robert Beck for closing remarks.

謝謝。問答環節已經結束。我想請羅伯特·貝克做最後發言。

Thank you, operator. And thanks everyone for joining. As I said in response to David's question, look, we're happy with the credit performance. I'm not going to go through and reiterate, what I said. It's been great to open up, a cohort of branches and see the performance and rebuild that muscle memory. It's being done at a tighter wrist box. And so even if we tighten the credit box, we have opportunity to continue to grow. So that's exciting for the business.

謝謝您，接線生。感謝大家的加入。正如我在回答大衛的問題時所說的那樣，我們對信用表現感到滿意。我不會重複我說過的話。開設一批分支機構並觀察其表現並重建肌肉記憶真是太棒了。這項工作是在更嚴格的手腕限制下完成的。因此，即使我們收緊信貸限制，我們仍有機會繼續成長。這對企業來說是一件令人興奮的事。

And, look, we continue to manage, our balance sheet well, our cost of funds well, we're generating capital. And, I think like everybody, we're just watching things unfold on the tariff side and other implications, and we can quickly pivot. And titan if that's what we need to do. So, appreciate everybody joining this evening and if you got any other follow-up questions, obviously, we're always available. Thank you.

而且，你看，我們繼續管理我們的資產負債表，我們的資金成本很好，我們正在產生資本。而且，我認為，和所有人一樣，我們只是在關注關稅方面和其他影響的進展，我們可以迅速做出調整。如果這就是我們需要做的，那就去泰坦吧。因此，感謝大家今晚的參加，如果您有任何其他後續問題，我們隨時為您解答。謝謝。

Thank you, and this concludes today's conference, and you may disconned your lines to at this time. Thank you for your participation.

謝謝大家，今天的會議到此結束，大家可以掛斷電話了。感謝您的參與。