Regional Management Corp (RM) 2025 Q2 法說會逐字稿

Ladies and gentlemen, greetings and welcome to the Regional Management second-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Garrett Edson from ICR. Please go ahead.

女士們、先生們，大家好，歡迎參加區域管理 2025 年第二季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。現在我很高興介紹您的主持人，來自 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.

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，這些報告已在本次電話會議之前發布，可以在我們的網站 regionalmanagement.com 上找到。

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.

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.

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。

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.

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

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 指標的對帳表，可在我們的收益公告或收益報告中查閱，也可在我們的網站 regionalmanagement.com 上查看。現在，我想介紹 Regional Management Corp 總裁兼執行長 Rob Beck。

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

謝謝，加勒特，歡迎參加我們的 2025 年第二季財報電話會議。今天與我一起出席的還有我們的財務行政官 Harp Rana。在本次電話會議上，我們將介紹第二季的業績，更新我們的投資組合、信貸表現和成長策略，並分享我們對 2025 年下半年的預期。

We delivered very strong financial and operating results in the second quarter. We generated net income of $10.1 million and diluted earnings per share of the dollar rate, an improvement of 20% year over year. Our results across all line items met or beat our guidance, including net income that was $3 million or 42% better than the midpoint of our guidance. Our quarterly revenue reached a record level of $157 million.

我們在第二季度取得了非常強勁的財務和營運表現。我們實現了淨收入 1,010 萬美元，每股攤薄收益以美元計算，年增 20%。我們所有項目的業績都達到或超過了我們的預期，其中淨收入比我們的預期中位數高出 300 萬美元或 42%。我們的季度收入達到了創紀錄的 1.57 億美元。

Total originations were also at a record high, and our annualized operating expense ratio was an all-time best. I continue to be impressed with our team's execution as we focus on driving growth, improving our operating effectiveness, and delivering strong shareholder returns.

總發起量也創下了歷史新高，我們的年度營運費用率也達到了歷史最高水準。我們專注於推動成長、提高營運效率和實現強勁的股東回報，團隊的執行力給我留下了深刻的印象。

Consumers in our target segment remain healthy. This has allowed us to responsibly grow our portfolio while also improving our credit performance. We grew our net receivables by $70 million sequentially in the second quarter on $510 million of originations. Our ending net receivables were up 10.5% year over year in line with our expectations to grow the portfolio by at least 10% in 2025.

我們目標群體中的消費者仍然健康。這使我們能夠負責任地擴大我們的投資組合，同時提高我們的信用表現。我們的淨應收帳款在第二季度環比增長了 7,000 萬美元，原有金額為 5.1 億美元。我們的期末淨應收帳款年增 10.5%，符合我們對 2025 年投資組合至少成長 10% 的預期。

At quarter end, our 30-bday delinquency rate was 6.6%, an improvement of 50 basis points sequentially and 30 basis points better year over year. Our net credit loss rate of 11.9% was in line with our expectations for the quarter. The NCL rate improved 50 basis points sequentially and with 80 basis points better than the prior-year period. Our credit tightening actions continued to yield positive results.

截至季末，我們的 30 天拖欠率為 6.6%，比上一季改善了 50 個基點，比去年同期改善了 30 個基點。我們的淨信用損失率為 11.9%，符合我們對本季的預期。NCL 利率比上一季提高了 50 個基點，比去年同期提高了 80 個基點。信貸緊縮政策持續取得積極成效。

We also manage expenses tightly in the quarter. Our operating expense ratio of 13.2% improves 60 basis points year over year, despite continued investment in innovation and growth, including new branch openings. We'll continue to invest in initiatives that will drive long-term returns while practicing sound expense discipline.

本季我們也嚴格管理開支。儘管我們持續對創新和成長進行投資（包括開設新分公司），但我們的營業費用率為 13.2%，年比改善了 60 個基點。我們將繼續投資於能帶來長期回報的舉措，同時實施合理的費用管理。

In the second quarter we had capital generation of $16.9 million, bringing total capital generation year-to-date to $26.8 million. Through the second quarter of this year, we returned an aggregate of $17.6 million in capital to shareholders via stock repurchases of $11.6 million and dividends of $6.1 million.

第二季度，我們的資本創造額為 1,690 萬美元，使年初至今的總資本創造額達到 2,680 萬美元。截至今年第二季度，我們透過 1,160 萬美元的股票回購和 610 萬美元的股息向股東返還了總計 1,760 萬美元的資本。

Our book value per share reached $36.43 at quarter end. In some, we're very pleased with our second quarter results. As I reflect on economic conditions and our team's efforts over the last several years, I believe the second quarter represents one of the strongest periods of execution since 2021 and early 2022, a time when inflation was stable, funding costs were low, and government stimulus was contributing to strong credit outcomes.

季度末我們的每股帳面價值達到 36.43 美元。在某些方面，我們對第二季的業績非常滿意。回顧過去幾年的經濟狀況和我們團隊的努力，我認為第二季度是自 2021 年和 2022 年初以來執行力最強的時期之一，當時通膨穩定，融資成本低，政府刺激措施促進了強勁的信貸業績。

We have very positive momentum, a growing healthy portfolio, and remain well positioned to deliver strong results moving forward. Before handing things over to Harp, I'll touch on a few strategic items. We opened two branches in the second quarter, bringing total new branch openings to 17 since early September of last year, of which 11 are in new markets in California, Arizona, and Louisiana.

我們擁有非常積極的發展勢頭、不斷增長的健康投資組合，並且仍處於有利地位，可以在未來取得強勁的業績。在將事情交給 Harp 之前，我想先談談一些策略事項。我們在第二季開設了兩家分行，自去年 9 月初以來，新開設的分行總數達到 17 家，其中 11 家位於加州、亞利桑那州和路易斯安那州的新市場。

These branches are performing well and growing rapidly, and we expect to open another 5 to 10 branches over the next six months. We generally observe that new branches begin to generate positive monthly net income at around month 14 and pre-provision net income at around month three. We view new branch openings as excellent investments and will continue to open new branches in new and existing markets with the pace of openings dependent on economic conditions.

這些分行表現良好且發展迅速，我們預計未來六個月將再開設5至10家分行。我們通常觀察到，新分公司在第 14 個月左右開始產生正的月淨收入，在第 3 個月左右開始產生撥備前淨收入。我們將開設新分行視為極佳的投資，並將繼續在新市場和現有市場開設新分行，開設速度取決於經濟狀況。

We also continue to execute on our barbell strategy, which focuses on growth in our high quality auto-secured and high margin small loan portfolios. Our auto-secured loan portfolio grew by $66 million or 37% year by year, from 10% to 13% of the total portfolio and carries a 30-day delinquency rate of 1.9%.

我們也繼續執行我們的槓鈴策略，專注於高品質汽車擔保和高利潤小額貸款組合的成長。我們的汽車抵押貸款組合年增 6,600 萬美元或 37%，佔總貸款組合的比例從 10% 上升到 13%，30 天拖欠率為 1.9%。

Meanwhile, our portfolio of loans with APRs above 36% grew by $50 million or 16% year over year, increasing modestly from 17% to 18% of our total portfolio. These portfolios continue to perform well, have strong margins, and support our customer graduation strategy. On the expense front, we made good stewards of shareholder capital.

同時，我們的年利率超過 36% 的貸款組合年增 5,000 萬美元，增幅為 16%，占我們總組合的比重從 17% 小幅上升至 18%。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。在支出方面，我們很好地管理了股東資本。

As a normal course of our operations, we regularly review branch level financial and operating metrics and evaluate opportunities to improve network efficiency. In connection with those efforts, we expect to consolidate 8 to 10 branches this year into nearby branches. The G&A extends from these actions will be used to support our new branch openings in new geographies.

作為我們營運的正常過程，我們會定期審查分支機構層級的財務和營運指標，並評估提高網路效率的機會。結合這些努力，我們預計今年將把 8 至 10 個分支機構合併到附近的分支機構。這些行動所延伸出的 G&A 將用於支持我們在新地區開設新分支機構。

In addition, earlier this month, we completed a small restructuring in our corporate offices with the general goal of streamlining our business processes to maximize efficiency. While this resulted in a restructuring charge in the third quarter, the G&A expense savings from the action will more than offset the charge within the quarter. Moving forward, we expect annualized G&A expense savings of roughly $2.3 million from this reposition.

此外，本月初，我們在公司辦公室完成了小規模重組，總體目標是簡化業務流程，最大限度地提高效率。雖然這導致了第三季的重組費用，但該行動節省的一般及行政費用將足以抵銷本季的費用。展望未來，我們預計此次調整將節省約 230 萬美元的年度 G&A 費用。

These savings will support our ongoing investments in technology and advanced data and analytics, which are already bearing fruit. For example, we developed a new front end branch origination platform that will improve team member effectiveness, enhance the customer experience, and ultimately benefit our operating efficiency. The new system facilitates a smoother, quicker, and more accurate origination process.

這些節省下來的資金將支持我們在技術和先進數據與分析方面的持續投資，這些投資已經取得了成果。例如，我們開發了一個新的前端分支發起平台，這將提高團隊成員的效率，增強客戶體驗，並最終提高我們的營運效率。新系統使得發起過程更加順暢、快速、準確。

We began piling the system earlier this year, have deployed the system within one of our larger states, and we will be rolling it out throughout our network over the next 18 months. We've also developed a new customer lifetime value analytic framework for direct mail marketing that consists of dozens of machine learning models that allow us to better optimize offer and selection criteria. We began using the new model in the second quarter and will fully deploy in the third quarter.

我們在今年早些時候開始建立該系統，並在我們較大的一個州內部署了該系統，並將在未來 18 個月內將其推廣到整個網路。我們還為直郵行銷開發了一個新的客戶終身價值分析框架，該框架包含數十個機器學習模型，使我們能夠更好地優化報價和選擇標準。我們在第二季開始使用新模型，並將在第三季全面部署。

We expect to see significant benefits as it scales in use. Similarly, we'll be rolling out our new machine learning branch underwriting model starting in the third quarter, and we'll deploy it across our network as we implement our new front-end origination tool.

我們期望隨著其使用範圍的擴大，能夠看到顯著的效益。同樣，我們將從第三季開始推出新的機器學習分支核保模型，並在實施新的前端發起工具時將其部署到我們的網路中。

These new models will allow us to improve volume while holding credit risk constant, improve credit risk while holding volume constant or some combination of the two. Ultimately, the models will improve our male selection, enhance our ability to monitor results, and enable us to optimize profitability.

這些新模型將使我們能夠在保持信用風險不變的情況下提高交易量，在保持交易量不變的情況下提高信用風險，或將兩者結合起來。最終，這些模型將改善我們的男性選擇，增強我們監控結果的能力，並使我們能夠優化獲利能力。

We expect that our team's efforts to grow our portfolio, increase our operational efficiency, and improve our credit performance will drive increases in net income and shareholder value. For 2025 we're forecasting full year net income of $42 million to $45 million.

我們期望，我們的團隊為擴大投資組合、提高營運效率和改善信貸績效所做的努力將推動淨收入和股東價值的成長。我們預測 2025 年全年淨收入將達到 4,200 萬至 4,500 萬美元。

Given the strong portfolio growth we experience in the second quarter, there may be an opportunity for faster growth in the second half of the year. Where we land within the forecasted 2025 net income range will be driven by our portfolio growth, which directly impacts our provisioning for credit losses and bottom line results. Ultimately, our portfolio growth rate in the second half will depend on the health of our customers informed by our credit metrics and macroeconomic conditions.

鑑於我們在第二季度經歷的強勁投資組合成長，下半年可能有機會實現更快的成長。我們能否達到預測的 2025 年淨收入範圍將取決於我們的投資組合成長，這直接影響我們的信貸損失準備金和底線結果。最終，我們下半年的投資組合成長率將取決於我們的信用指標和宏觀經濟狀況所反映的客戶健康狀況。

I'll now turn the call over to Harp who will provide more detail on our results.

現在我將電話轉給 Harp，他將提供有關我們結果的更多詳細資訊。

Thank you, Rob, and hello everyone. I'll now take you through our second-quarter results in more detail and provide you with an outlook for the second half of the year. On Page 4 of the supplemental presentation, we provide our second-quarter financial highlights.

謝謝你，羅布，大家好。現在，我將向您更詳細地介紹我們第二季的業績，並為您提供下半年的展望。在補充報告的第 4 頁，我們提供了第二季的財務亮點。

Our net income of $10.1 million and diluted EPS of $1.03 were supported by a solid portfolio and revenue growth, a healthy credit profile, expense discipline, and a strong balance sheet. For the third quarter, we're projecting net income of roughly $14.5 million.

我們的淨收入為 1,010 萬美元，稀釋每股收益為 1.03 美元，這得益於穩健的投資組合和收入成長、健康的信貸狀況、嚴格的支出控制以及強勁的資產負債表。我們預計第三季淨收入約為 1450 萬美元。

Turning to Pages 5 and 6, we had record total originations of $510 million in the second quarter, up 20% year over year. Loan volume was driven by strong performance from our digital channel, auto secured product, and the 17 de novo branches we've opened over the past 12 months, the latter of which generated 24% of our year-over-year growth.

翻到第 5 頁和第 6 頁，我們第二季的總發放額達到創紀錄的 5.1 億美元，年增 20%。貸款量的成長得益於我們的數位管道、汽車擔保產品以及過去 12 個月內新開設的 17 家分行的強勁表現，其中後者創造了我們 24% 的同比增長。

Our total portfolio reached record levels at the end of the second quarter and is expected to cross $2 billion in the third quarter while our ending net receivables per branch reached $5.6 million on average.

我們的總投資組合在第二季末達到了創紀錄的水平，預計第三季將超過 20 億美元，而我們每個分公司的期末淨應收帳款平均達到 560 萬美元。

We continue to believe that key 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 adaptable.

我們仍然相信，薪資成長、空缺職位數量、失業率和通貨膨脹方向等關鍵經濟指標對我們的客戶有利，而且我們的客戶往往具有韌性和適應性。

These conditions have allowed us to grow our portfolio while maintaining a tight credit box. Looking ahead to the third quarter, we anticipate that our ending net receivables will increase roughly $55 million to $60 million sequentially, and that our average net receivables will be up roughly $75 million sequentially.

這些條件使我們能夠擴大投資組合，同時保持嚴格的信貸限制。展望第三季度，我們預計期末淨應收帳款將較上季增加約 5,500 萬美元至 6,000 萬美元，平均淨應收帳款將較上季增加約 7,500 萬美元。

Turning to Page 7, total revenue grew to a record $157 million in the second quarter, up 10% year over year. Our total revenue yield and interest and fee yield each moved up 50 basis points sequentially to 32.9% and 29.4% consistent with seasonal patterns.

翻到第 7 頁，第二季總營收成長至創紀錄的 1.57 億美元，年增 10%。我們的總收入收益率和利息及費用收益率分別較上季上升 50 個基點，達到 32.9% 和 29.4%，與季節性模式一致。

Total revenue yield improved 20 basis points year over year from the improved credit performance and ancillary product revenue. In the third quarter, we expect total revenue yield of 32.8%, a 10 basis point sequential decrease due to portfolio mix, and for the fourth quarter, we anticipate a further decline in revenue yield due to seasonality.

由於信貸業績和輔助產品收入的提高，總收入收益率年增了 20 個基點。在第三季度，我們預計總收入收益率為 32.8%，由於投資組合結構的原因，環比下降 10 個基點；在第四季度，我們預計收入收益率將因季節性因素進一步下降。

Moving to Page 8, our portfolio continues to perform well. Our 30 plus day delinquency rate as a quarter end was 6.6%, 50 basis points better sequentially, and a 30 basis point improvement year over year. Our net credit losses in the second quarter were better than our forecast, and our net credit loss rate of 11.9% improved 50 basis points sequentially and 80 basis points year over year due to credit tightening and effective portfolio management.

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 30 天以上拖欠率為 6.6%，比上一季改善了 50 個基點，比去年同期改善了 30 個基點。我們第二季的淨信貸損失優於我們的預期，由於信貸緊縮和有效的投資組合管理，我們的淨信貸損失率為 11.9%，比上一季度改善了 50 個基點，比去年同期改善了 80 個基點。

Our second quarter net credit losses include a $2.1 million or 40 basis point impact from prior year hurricane activity. In the third quarter, we expect our delinquency rate to rise gradually, consistent with seasonal patterns.

我們第二季的淨信貸損失包括去年颶風活動造成的 210 萬美元或 40 個基點的影響。在第三季度，我們預計我們的拖欠率將逐漸上升，與季節性模式一致。

We anticipate that our net credit losses will be approximately $51 million in the third quarter, or a net credit loss rate of approximately 10.3%, a 30 basis point improvement from the third quarter of last year. The expected sequential improvement in our net credit losses in the third quarter is consistent with seasonal patterns, and the expected year-over-year improvement in our net credit loss rate in the third quarter is reflective of the overall improved credit quality and performance of our portfolio. For the fourth quarter, we expect a sequential seasonal increase in our NCL rate.

我們預計第三季淨信用損失約為 5,100 萬美元，淨信用損失率約為 10.3%，比去年第三季改善 30 個基點。我們第三季淨信貸損失預計將環比改善，這與季節性模式一致，而我們第三季淨信貸損失率預計將同比改善，反映了我們投資組合的信貸品質和表現整體改善。對於第四季度，我們預計 NCL 率將出現季節性環比增長。

Turning to Page 9, we increased our allowance for credit losses in the quarter by $3.7 million to support portfolio growth. Consistent with our outlook, our allowance for credit losses rate declined to 10.3% due to the release of the remaining hurricane reserve against the associated net credit losses in the second quarter. Looking to the third quarter, subject to economic conditions and portfolio performance, we expect our reserve rate to remain steady at 10.3% at the end of the quarter.

翻到第 9 頁，我們本季的信貸損失準備金增加了 370 萬美元，以支持投資組合的成長。與我們的展望一致，由於第二季度釋放了剩餘的颶風儲備金來抵消相關的淨信貸損失，我們的信貸損失準備金率下降至 10.3%。展望第三季度，受經濟狀況和投資組合表現的影響，我們預計本季末的準備金率將保持穩定在 10.3%。

Looking to Page 10, we continue to closely manage our spending while still investing in our growth, capabilities and strategic initiatives. Our annualized operating expense ratio was 13.2% in the second quarter, an all-time best and an improvement of 60 basis points from the prior year period.

展望第 10 頁，我們將繼續密切管理我們的支出，同時仍在投資我們的成長、能力和策略性舉措。我們第二季的年化營業費用率為 13.2%，創歷史新高，比去年同期改善了 60 個基點。

In the second quarter, a revenue growth outpaced our G&A expense growth by more than 5 times. In the third quarter, we expect G&A expenses to be roughly $65 million to $66 million.

第二季度，營收成長速度超過一般及行政費用成長速度的5倍以上。我們預計第三季的一般及行政費用約為 6,500 萬至 6,600 萬美元。

Turning to Pages 11 and 12 are interest expenses for the second quarter with $20.4 million, or 4.2% of average net receivables on an annualized basis, better than our outlook on lower average debt and lower fees. Our cost of funds increased year over year as lower fixed rate debt has matured and we funded our growth with higher fixed and variable rate debt.

翻到第 11 頁和第 12 頁，第二季的利息支出為 2,040 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。由於較低固定利率債務到期，並且我們透過較高固定和浮動利率債務為我們的成長提供資金，因此我們的資金成本逐年增加。

Even with the increased cost of funds, we're pleased with the way we've managed for interest expense over the past few years. As of the end of the second quarter, 84% of our debt with fixed rate with a weighted average coupon of 4.5%.

即使資金成本增加，我們對過去幾年管理利息支出的方式仍感到滿意。截至第二季末，我們 84% 的負債為固定利率，加權平均票面利率為 4.5%。

In the third quarter, we expect interest expense to be approximately $22 million or 4.4% of average net receivables, and for the fourth quarter, we expect the cost of funds rate to increase further to 4.5%. Moving forward, we will continue to maintain a strong balance sheet with ample liquidity and borrowing capacity, diversified and staggered funding sources, and a sensible interest rate management strategy.

我們預計第三季的利息支出約為 2,200 萬美元，佔平均淨應收帳款的 4.4%，而對於第四季度，我們預計資金成本率將進一步上升至 4.5%。展望未來，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，多元化和分階段的融資來源，以及合理的利率管理策略。

Aside from investing in our growth and strategic initiatives, we continue to allocate excess capital to our dividend and 30 million share repurchase programs. Our Board of Directors declared a dividend of $0.30 per common share for the third quarter. Pursuant to our buyback program, we repurchased approximately 165,000 shares of our common stock in the second quarter at a weighted average price of $30.36 per share.

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 萬股回購計畫。我們的董事會宣布第三季每股普通股股利 0.30 美元。根據我們的回購計劃，我們在第二季以每股 30.36 美元的加權平均價格回購了約 165,000 股普通股。

Finally, I'll note that we provide a summary of our third-quarter 2025 guidance on Page 14 of our earnings supplement. That concludes my remarks. I'll now turn the call back over to Rob.

最後，我要指出的是，我們在收益補充文件第 14 頁提供了 2025 年第三季指引的摘要。我的發言到此結束。我現在將電話轉回給 Rob。

Thanks Harp. Before we wrap up, I want to take a moment to thank the entire regional team for their dedication and outstanding execution during the second quarter. Your hard work continues to drive our success and positions us for long-term growth.

謝謝 Harp。在結束之前，我想花點時間感謝整個區域團隊在第二季度的奉獻和出色的執行。您的辛勤工作將繼續推動我們的成功並為我們的長期發展奠定基礎。

We're extremely proud of our results this quarter. Record revenue, strong net income, responsible portfolio growth, discipline, expense management, and improved credit performance. These achievements reflect the strength of our strategy, the quality of our execution, and the resilience of our business model.

我們對本季的業績感到非常自豪。創紀錄的收入、強勁的淨收入、負責任的投資組合成長、紀律、費用管理和改善的信貸表現。這些成就體現了我們策略的實力、執行的品質以及商業模式的彈性。

Looking ahead, we remain focused on accelerating growth, investing in strategic initiatives like branch expansion, advanced analytics, and technology enhancements, and further strengthening our credit performance. These actions will enable us to deliver sustainable, profitable growth and long-term value for our shareholders.

展望未來，我們將繼續專注於加速成長，投資分公司擴張、進階分析和技術增強等策略舉措，並進一步加強我們的信貸績效。這些行動將使我們能夠為股東實現可持續的獲利成長和長期價值。

Thank you again for your continued support and confidence in regional management. We're excited about the opportunities ahead and look forward to updating you on our progress in the quarters to come. I'll now open up the call for questions.

再次感謝您對區域管理的持續支持與信任。我們對未來的機會感到興奮，並期待在未來幾季向您通報我們的進展。我現在開始回答問題。

Operator, could you please open the line?

接線員，您可以接通線路嗎？

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. (Operator Instructions)

謝謝。女士們、先生們，我們現在開始問答環節。（操作員指示）

David Scharf, Citizens Capital Market.

大衛‧沙夫 (David Scharf)，公民資本市場。

Great, good afternoon and thanks for taking my questions. Terrific results and I'm wondering, Rob, you you've discussed an awful lot of different initiatives, whether it's geographic expansion, some of the store-based origination, marketing channel, technology developments, as we look beyond just kind of the near term 90, 180 day, guidance.

很好，下午好，感謝您回答我的問題。結果非常好，羅布，我想知道，您討論過很多不同的舉措，無論是地理擴張、一些基於商店的起源、營銷渠道、技術發展，因為我們關注的不僅僅是短期 90 天、180 天的指導。

Is there kind of a ranking of where you see the most opportunity you can provide us whether it's geographic channel related or product related or should we just think of this as always fine tuning among all the different aspects of growth.

您是否認為可以為我們提供最多的機會，無論是與地理管道相關還是與產品相關，或者我們是否應該將其視為在所有不同增長方面之間始終進行微調。

So, great game, great question. Thanks for joining. So here's how I would answer that question, and I'll give you the context of what I think we accomplished this for in doing so. First and foremost, what I would say is we have a lot of levers for growth, which is reflecting all the investments we've made in the various initiatives over the last several years, including what, has been a pretty challenging time during the high inflation period.

所以，精彩的比賽，精彩的問題。感謝您的加入。這就是我對這個問題的回答，我會向你介紹我認為我們這樣做是為了什麼。首先，我想說的是，我們有很多成長槓桿，這反映了我們過去幾年在各種舉措中所做的所有投資，包括在高通膨時期的相當具有挑戰性的時期。

And so it puts us in a unique position where we can pull those levers, based on, what we see in the health of the customer and, the macro conditions of the macro environment. So, the drivers of the growth for us have been a combination of state expansion and then new branches, many of which are in most states, our all secured lending, which we've been leading into digital, underwriting, which you can see was a very strong explorer, and also the advanced analytics that we've invested in, which, helps us to really fine tune our underwriting, and marketing strategies to deliver increased growth if we choose to, or to, use those models to moderate losses, so we can optimize using those advanced analytics depending on the market conditions.

因此，它使我們處於一個獨特的位置，我們可以根據客戶的健康狀況和宏觀環境的宏觀條件來利用這些槓桿。因此，我們成長的動力來自於州擴張和新分支機構的結合，其中許多分支機構遍布大多數州，我們的所有擔保貸款，我們一直引領數位化，承保，你可以看到這是一個非常強大的探索者，以及我們投資的高級分析，這有助於我們真正微調我們的承保和營銷策略，以便在我們選擇時實現增長，或者使用這些模型來緩和損失，因此我們可以根據市場進行優化。

So, what I would say to you is, and this isn't mutually exclusive, but if you look at the $187 million of growth we had you know year on year, our lower risk large loans large loans grew $147 million which was like 79% of the growth, and that was, almost quadruple the increase in the small ones.

所以，我想對你說的是，這並不是互相排斥的，但如果你看看我們同比增長 1.87 億美元，我們的低風險大額貸款增長了 1.47 億美元，佔增長的 79%，這幾乎是小額貸款增幅的四倍。

The auto secured loans increased by [66] and now we got the subset of large loans, but that was 35% of our growth, and it's now 13% of our portfolio, as I said, delinquency rates, 30 day delinquency rates is 1.9%, so, attractive, low-ris citizens. The 17 new branches that we opened in September, contributed $45 million of growth, which is about 25% of the overall growth, and then if you just looked at these states, that was $97 million growth, or roughly 52% of the growth, and most of that growth was, at rate below 36%.

汽車抵押貸款增加了 [66]，現在我們有了大額貸款的子集，但這是我們成長的 35%，現在占我們投資組合的 13%，正如我所說，拖欠率，30 天拖欠率為 1.9%，所以，對低風險公民有吸引力。我們 9 月新開設的 17 家分行貢獻了 4,500 萬美元的成長，約佔整體成長的 25%，如果只看這些州，則貢獻了 9,700 萬美元的成長，約佔成長的 52%，而且大部分成長率都低於 36%。

So, the takeaway is, we are achieving this growth without losing our credit standards, okay? In fact, even on a high margin in business, (inaudible) 36% only increased marginally from 17% of the portfolio to 18% of the portfolio.

所以，關鍵在於，我們在實現這一成長的同時並沒有失去我們的信用標準，好嗎？事實上，即使業務利潤率很高，（聽不清楚）36% 也只是從投資組合的 17% 略微增加到投資組合的 18%。

So as we look ahead, we we're in a great position to be able to have all these levers to pull, and of course, with our advanced analytical tools, we can pull those levers to lean and to grow where we think we're going to optimize returns depending on what the market environment's like.

因此，展望未來，我們處於非常有利的位置，能夠利用所有這些槓桿，當然，憑藉我們先進的分析工具，我們可以利用這些槓桿來實現精益和成長，我們認為，根據市場環境，我們可以優化回報。

And so, I think it's a great place to be, and in in terms of where we expect to go for the rest of the year, look, it really depends on, what we see as the health of the customer, which at this point, we're seeing credit performance, which is, spot on with what we expected from the very beginning of the year.

因此，我認為這是一個很好的地方，至於我們預計今年剩餘時間的發展方向，看，這實際上取決於我們所看到的客戶的健康狀況，目前，我們看到的信用表現與我們年初的預期完全一致。

And so we have an opportunity to grow faster, I think, if we choose to in the second half of the year, but we'll let the credit performance and any macro, developments kind of guide where we end the growth in the full year.

因此，我認為，如果我們選擇在下半年實現更快的成長，我們就有機會，但我們會讓信貸表現和任何宏觀發展來指導我們全年的成長目標。

Yeah, no, that's helpful. I mean, it's certainly a lot of different levers at play, maybe just one follow up on your comments on credit. It looks like pretty much every lender that's reported in our coverage, regional, no exception, seemed to have probably exited the first quarter maybe in an over reserved position, which was entirely understandable in the wake of the kind of April 2 announcements, given all of the constructive commentary, you provided about the stability of your borrower base.

是的，不，這很有幫助。我的意思是，這肯定有很多不同的槓桿在起作用，也許只是對你關於信用的評論的一個後續跟進。看起來，我們報道中提到的幾乎所有貸款機構，包括地區性貸款機構，似乎都在第一季度結束時處於過度儲備的狀態，考慮到 4 月 2 日發布的公告以及你們對借款人基礎穩定性提供的所有建設性評論，這完全可以理解。

Is the allowance -- is the kind of flat allowance rate or reserve rate guidance you're providing, should that be taken as an indication that -- that's probably a normalized level or are there certain other things you're on the lookout for, that could potentially lead that reserve rate below 10%?

您提供的是固定準備金率還是準備金率指導，這是否應該被視為一種跡象——這可能是一個正常化的水平，或者您是否在關注其他可能導致準備金率低於 10% 的因素？

So David Mark, I'll answer that. So we look at our single allowance rate, and we, it's based upon our portfolio mix and our growth, and we look at product (inaudible) and delinquency scent. So we look at credit and delinquency trends in in terms of what we see internally and then we overlay macro on top of that.

那麼大衛馬克，我來回答這個問題。因此，我們查看我們的單一津貼率，它基於我們的投資組合和成長，我們查看產品（聽不清楚）和拖欠氣味。因此，我們從內部的角度來觀察信貸和拖欠趨勢，然後再疊加宏觀因素。

So what you saw this quarter in terms of the 10.3% and how that came down from last quarter, we had signaled that we would be releasing the remaining one which we did. So that's part of that [10.5% to 10.3%] The macro improved and that's another reason why you're seeing they come down from 10.5% to 10.3%.

因此，您看到本季度的 10.3% 以及與上一季相比的下降，我們已經暗示將發布剩餘的版本，我們也確實這麼做了。這是其中的一部分 [10.5% 到 10.3%] 宏觀經濟有所改善，這也是你看到它們從 10.5% 下降到 10.3% 的另一個原因。

So we've got the improvement of macro currently in the numbers that are calculated in the allowance for the quarter. Now if a reporter will take a look at, revised macros, and if there is an opportunity for the reserve to come down lower based on maps, but also our own friends and our product mix. We take a look at that every quarter, but right now in terms of, and you're probably looking at our guidance, it's comfortable in terms of where we're guiding to in third quarter at the 10.3%.

因此，我們目前已從本季的準備金計算數字中獲得了宏觀方面的改善。現在，如果記者看一下修改後的宏，如果根據地圖，儲備是否有機會下降，但這也是我們自己的朋友和我們的產品組合。我們每季都會對此進行審查，但就目前而言，您可能正在查看我們的指導，我們對第三季的指導是 10.3%，這是比較合理的。

Understood. Yeah, thank you very much.

明白了。是的，非常感謝。

Yeah, and then I'm just going to add a little bit here, just on the health of the customer is, it's worth saying it, I would say the customers are generally doing pretty well, and they're making smart choices, our customers tend to do a pretty good job of finding ways to mitigate stressful times.

是的，然後我在這裡再補充一點，關於顧客的健康狀況，值得一提的是，我想說顧客總體上做得很好，他們做出了明智的選擇，我們的客戶往往能很好地找到緩解壓力的方法。

Unemployment, as everyone knows, is low. It was nice to see the economy grow last quarter, and we're still seeing real wage growth in our customer segment, and there's still 7.5 million open jobs out there, and many of those roles fit our customer profile.

眾所周知，失業率很低。很高興看到上個季度經濟成長，我們客戶群的實際薪資仍在成長，而且仍有 750 萬個空缺職位，其中許多職位符合我們的客戶形象。

I do think immigration may further boost, the immigration restrictions will further boost wage growth and job prospects for our clients. And then if we look at the [O triple or O double B] bill, however you want to say it, you look, I think it's likely positive for our customers based on everything, we've seen, a little early to tell, but we generally do that as positive and, look, the uncertainty right now in the tariffs.

我確實認為移民可能會進一步促進，移民限制將進一步促進我們客戶的薪資成長和就業前景。然後，如果我們看一下 [O 三重或 O 雙 B] 賬單，無論你想怎麼說，你看，我認為根據我們所看到的一切，這對我們的客戶來說可能是積極的，現在說還為時過早，但我們通常認為這是積極的，看看現在關稅的不確定性。

I think there's a little bit more certainty than there was, and inflation is still a little elevated, but I think the view from, most market pundits is any tariffs will be more of a one-time shot to inflation rather than one that's a perfectly increased inflation continuously.

我認為現在的確定性比以前稍微高一些，而且通膨仍然有點高，但我認為，大多數市場專家的觀點是，任何關稅都只是一次性的通膨刺激，而不是持續不斷的通膨上升。

So, that's not to say that we're watching the performance of our customers and having the ability to tighten credit where we want, and the fact is, I think I've said numerous times, we, we're always, turning the dials tighter here to address where we might see stresses, but at this point in time, I think the consumer holding up pretty nicely.

所以，這並不是說我們正在關注客戶的表現並有能力在我們需要的地方收緊信貸，事實是，我想我已經說過很多次了，我們，我們總是在這裡加大力度解決我們可能看到的壓力，但目前，我認為消費者的表現相當不錯。

Understood. Thank you.

明白了。謝謝。

Thank you. Alexander Villalobos, Jefferies.

謝謝。亞歷山大‧維拉洛沃斯 (Alexander Villalobos)，傑富瑞 (Jefferies)。

Hey guys, this is Alex here, instead of John Hecht. Wanted to ask you a little bit about how we should think about yields going forward, potentially, there might be a rate cut later this year, but definitely a year from now we should be expecting lower rates. So just kind of, how what is the playbook with yields, should we expect to kind of maintain higher pricing as interest expense goes down, just kind of how we should think about that? Thank you.

嘿，大家好，我是 Alex，不是 John Hecht。想問您我們應該如何看待未來的收益率，有可能今年晚些時候可能會降息，但一年後我們肯定會預期利率會下降。那麼，收益率的策略是怎麼樣的呢？隨著利息支出的下降，我們是否應該預期維持較高的定價？我們該如何看待這個問題？謝謝。

So Alex, it's Har. When you say yield, are you referencing one? [Alex you there?]

那麼 Alex，我是 Har。當您說出收益時，您指的是收益嗎？[亞歷克斯你在嗎？ ]

Interest income yield, yeah.

利息收入收益率，是的。

So, revenue. Okay, so in terms of -- But the revenue yields, Alex, so I think we've guided in terms of, where revenue yields will be in the third quarter, in terms of how we price, the price in terms of competition, so you'll always price in terms of right, the right product or at the right price for the right customer.

所以，收入。好的，就收入收益率而言，亞歷克斯，所以我認為我們已經就第三季度的收入收益率、定價方式、競爭價格等方面做出了指導，因此您始終會根據正確的價格、正確的產品或為正確的客戶提供正確的價格來定價。

So that's how we price and we'll take a look at how our competitive pricing is to make sure that we don't have adverse selection, so we'll continue to monitor that and if there's opportunity to look at pricing, we will definitely do that.

這就是我們的定價方式，我們會研究我們的競爭性定價如何，以確保我們不會有逆向選擇，所以我們會繼續監控這一點，如果有機會研究定價，我們一定會這樣做。

Perfect. And then on the interest expense side, in the future, is there any ability to kind of switch to like a better cost of funds, source of funds, versus mezzanine debt?

完美的。那麼在利息支出方面，未來是否有能力轉向更好的資金成本、資金來源，而不是夾層債務？

So Alex. What we do is, we manage poet funds, quite effectively. If you look at what we've done over the last several quarters, you can see that we basically maintain pocket funds within 4% to 4.3% range, so we've done a very good job through the cycle managing cost of funds. And part of that is because of how much of our book is 84% of our book is set.

所以亞歷克斯。我們所做的就是，非常有效地管理詩人基金。如果你看看我們過去幾季的表現，你會發現我們基本上將零散資金維持在 4% 到 4.3% 的範圍內，所以我們在周期管理資金成本方面做得非常好。部分原因是因為我們的書有 84% 的內容是固定的。

And so when you're modeling, we're looking at cost of funds in the future, even though interest rates may come down through cuts, what we have to remember is that we have securitization. That they put on the books at very low ratings. Those will come due and they will reset at market rates, so you will see funds go up, especially in, we got into higher funds in third quarter.

因此，當您建模時，我們會考慮未來的資金成本，儘管利率可能會透過削減而下降，但我們必須記住的是，我們有證券化。他們以非常低的評級出版了這些書。這些資金將會到期，並且會按照市場利率重置，所以你會看到資金增加，特別是我們在第三季獲得了更高的資金。

We that is even higher cost of funds (inaudible) in fourth quarter. So that's the baseline as you look to model into next year and then when you look at next year, you should really look at the securitizations that we have coming to and what the weighted average cost of those securitizations are and then if you were to just look at the last securitization that we booked, that would give you a pretty good indication of how cost of funds is going to change and increase into next year.

我們認為第四季的資金成本甚至更高（聽不清楚）。因此，這是您展望明年的模型時的基準，然後當您展望明年時，您應該真正看看我們即將進行的證券化以及這些證券化的加權平均成本是多少，然後如果您只看我們預訂的最後一個證券化，這將為您提供一個很好的跡象，表明資金成本將如何變化並增加到明年。

Perfect. Yeah, that was my question going forward. Awesome. Thank you so much and congrats on the good results.

完美的。是的，這是我接下來要問的問題。驚人的。非常感謝，並祝賀您取得好成績。

Great.

偉大的。

Thanks, Alex.

謝謝，亞歷克斯。

Thank you. Kyle Joseph, Stephens Inc.

謝謝。凱爾約瑟夫（Kyle Joseph），斯蒂芬斯公司

Hey, good afternoon. Let me echo congratulations on a strong quarter. I just want to talk about the, originations mix in the quarter it looks like small decelerated a little bit, large accelerated. Just wondering, is that a function of demand, a function of competition, or is it really just one quarter is not enough to really call it a trend?

嘿，下午好。讓我再次祝賀本季業績強勁。我只想談談本季的發起組合，看起來小額發起略有減速，大額發起則加速。只是想知道，這是需求的函數，競爭的函數，還是僅僅一個季度還不足以稱之為趨勢？

Yes, I'll take that. Harp, you can jump in. As I said, our large loans grew nicely year-on-year. I think a big part of that is driven by the increase in our secured business. I think in our digital originations, bigger concentration in the larger loans, better quality, and that's done with invention.

是的，我接受。哈普，你可以跳進來了。正如我所說，我們的大額貸款同比增長良好。我認為其中很大一部分是由於我們的擔保業務的成長。我認為，在我們的數位化發起中，更大程度地集中於大額貸款，品質更好，這是透過創新實現的。

I think even in the new states that we enter, particularly we're renewing smaller loans and the larger loans, that's a generalized theme that we're growing our larger loan book faster than our small loan book.

我認為，即使在我們進入的新州，特別是我們正在更新小額貸款和大額貸款，這是一個普遍的主題，即我們的大額貸款賬簿的增長速度比小額貸款賬簿的增長速度快。

And I'll say this, and look, I'm not going to give you a definitive view of where the greater than 36% business will be over time. But I do think it's going to decline as a percentage of the portfolio because of the levers I just mentioned, the growth in new states, the digital larger loans, the auto secured, all of which helps improve the quality of our portfolio, and I think are all originated at attractive returns. Harp, did you add anything?

我要說的是，看，我不會給你一個明確的觀點，告訴你隨著時間的推移，超過 36% 的業務將會走向何方。但我確實認為它在投資組合中的佔比會下降，因為我剛才提到的槓桿、新州的增長、數位大額貸款、汽車擔保，所有這些都有助於提高我們投資組合的質量，我認為所有這些都源於有吸引力的回報。豎琴，你加了什麼嗎？

No, I think that's it (inaudible)

不，我想就是這樣（聽不清楚）

Yeah, that's helpful. And then just one follow-up on OpEx. I appreciate the guidance for 3Q. But as we think about that going forward, it sounds like there's some puts and takes in terms of branch consolidation versus new builds, and then some restructuring you did at the corporate level. But how you're thinking about whether it's marketing on its own or expense, and how that compares to kind of your expectations for loan growth overall?

是的，這很有幫助。然後只對 OpEx 進行一次跟進。我很欣賞對第三季的指導。但當我們考慮未來發展時，聽起來在分支機構合併與新建方面存在一些取捨，然後在公司層面進行了一些重組。但是您如何看待這是否是行銷本身還是費用，以及這與您對整體貸款成長的預期相比如何？

Yeah. I mean if we lean into faster growth in the second half of the year, we have guided to minimum ER growth of 10%. Now in the second quarter, we grew at about 10.5%, which was about $15 million higher than our guidance on ENR. And so pretty healthy beat on growth in the second quarter. So as we look at the second half of the year, there is an opportunity potentially to grow faster.

是的。我的意思是，如果我們傾向於在下半年實現更快的成長，我們預計 ER 成長率至少會達到 10%。現在在第二季度，我們的成長率約為 10.5%，比我們對 ENR 的指導高出約 1500 萬美元。因此第二季的成長表現相當健康。因此，展望下半年，我們有可能實現更快的成長。

Again, we'll have to see what the macro conditions hold and support. But at the end of the day, there could be opportunity and there could be additional expenditure to go along with that. Naturally, we want to take advantage of that. But look, as I think everybody knows, higher growth goes impact short-term net income due to CECL, as you take the lifetime losses upfront.

再次，我們必須看看宏觀條件如何並給予支持。但最終，可能會有機會，並且可能會有額外的支出。當然，我們想利用這一點。但是，我想大家都知道，更高的成長會對 CECL 造成的短期淨收入產生影響，因為您需要預先承擔終身損失。

And so that's part of the reason, or is the reason for the range of the full year. But faster growth is just going to propel higher earnings for next year. And so I think that we're sitting in a good position where we see the opportunity to grow and potentially take advantage of it if market conditions warrant.

這就是部分原因，或者說是全年範圍的原因。但更快的成長只會推動明年的獲利增加。因此，我認為我們處於一個有利位置，我們看到了成長的機會，如果市場條件允許的話，我們有可能利用這個機會。

Got it. That's it for me. Thanks very much for taking my questions.

知道了。對我來說就是這樣。非常感謝您回答我的問題。

No, That's great, appreciate it.

不，太好了，非常感謝。

Thank you (Operator Instructions) Vincent Caintic, BTIG.

謝謝（操作員指示）Vincent Caintic，BTIG。

Hey, good afternoon. Thanks for taking my question. I did want to follow up on the guidance. So I wanted to ask about your philosophy around guidance and how much conservatism is baked into it. When I look at your good second-quarter results versus your guidance, you handily beat it. Loan growth was, what, 22% higher than guidance. Revenue yield was 30 basis points higher than your guidance, and the expenses were lower.

嘿，下午好。感謝您回答我的問題。我確實想遵循該指導。所以我想問一下您對指導的理念以及其中有多少保守主義。當我將你們第二季度的良好業績與你們的預期進行比較時，我發現你們輕鬆超越了預期。貸款成長比預期高出 22%。收入收益率比您的指導高出 30 個基點，而且費用較低。

So your net income was 40% above your own second-quarter guidance. So I wanted to ask, first, maybe what changed in your performance versus what you were expecting when you gave the guidance? And then when I look at the third-quarter guidance calls for lower loan growth than what we saw in the second quarter, and the revenue yield declining quarter over quarter. So I just wanted to ask how much conservatism is baked into all of that. Thank you.

因此，您的淨收入比您自己的第二季預期高出 40%。因此我想問一下，首先，與您給予指導時的預期相比，您的表現有什麼變化嗎？然後，當我看到第三季度的指導意見時，我發現貸款成長低於第二季度，而且收入收益率環比下降。所以我只是想問一下，這一切有多少是保守主義的體現。謝謝。

No, Vincent, that's a good question. I would tell you that when we were giving guidance for second quarter, we were coming off the first quarter where volume growth wasn't where we had hoped it would be, and that's part because of a strong tax season and some weather.

不，文森特，這是個好問題。我想告訴你，當我們為第二季度提供指導時，我們剛剛結束了第一季的工作，因為第一季的銷售成長並沒有達到我們的預期，部分原因是稅收季節強勁以及天氣原因。

And of course, the biggest backdrop was just all the uncertainty about tariffs and the potential for a hard landing. So I think as we started to see things evolve a little bit and saw customer demand be there for the segments where we get a good return, we were able to lean into the growth faster, and that's what we should do.

當然，最大的背景就是關稅的不確定性以及硬著陸的可能性。因此，我認為，當我們開始看到事情有所進展，並看到客戶對我們獲得良好回報的領域有需求時，我們就能更快地實現成長，這就是我們應該做的。

But as I noted in the document, we also, obviously, having a mind towards the future if things were going to slow down, we took actions on expenses, and we ran the place to be as efficient as possible. We took some restructuring actions.

但正如我在文件中指出的那樣，我們顯然也會考慮未來，如果情況放緩，我們會採取行動減少開支，並盡可能高效地運作。我們採取了一些重組措施。

And some of these things, you just can't give guidance on because we're working the numbers and the results each and every month of the quarter. So as we look ahead, in terms of conservatism or not, I don't think there's 100% clarity on where tariffs are going to go. And so part of the reason why we're giving a range on full-year net income is it's very much dependent on how much growth we choose to do.

其中有些事情，你無法給出指導，因為我們每季的每個月都在計算數字和結果。因此，展望未來，無論是否保守，我認為關稅的走向尚不十分清楚。因此，我們給出全年淨收入範圍的部分原因是，這在很大程度上取決於我們選擇實現多少成長。

Okay. That's very helpful on how you're thinking about guidance. I really appreciate that. Separate question. I noticed in one of the slides, a very helpful detail on all the slides. One of the slides that you were talking about your store growth.

好的。這對您思考如何指導非常有幫助。我真的很感激。單獨的問題。我注意到其中一張投影片上有一個非常有用的細節。其中一張投影片討論了您的商店發展。

The receivables per store is actually higher for the one to three year-old stores than for stores older than 3 years. And I thought that was interesting. I was wondering if maybe you can describe like what's driving that and if there's any learnings is on slide, I think, six of the presentation deck. I just thought that was very fascinating that there's so much growth there. So I'm wondering about the opportunities for the rest of the stores.

事實上，開業一至三年的商店的每家應收帳款要高於開業三年以上的商店。我認為這很有趣。我想知道您是否可以描述一下推動這一進程的因素，以及是否有任何經驗教訓可以在投影片上找到，我想，是簡報的第六張投影片。我只是覺得那裡有如此大的發展真是令人著迷。所以我想知道其他商店的機會。

Thank you. Yes. Again, great question. The driver of that is most of those stores are in the newer states, which have less range density. And so we're seeing bigger stores on the average than what we have in our legacy states.

謝謝。是的。再次，好問題。造成這種情況的原因是，大多數商店都位於較新的州，這些州的覆蓋範圍密度較低。因此，我們看到的商店平均規模比我們傳統州的商店更大。

Okay, that's helpful. That's all I had. Thank you.

好的，這很有幫助。這就是我所擁有的一切。謝謝。

No, great. Appreciate it.

不，太好了。非常感謝。

Thank you. John Rowan, Janie Montgomery Scott.

謝謝。約翰羅文、珍妮蒙哥馬利史考特。

Good afternoon. Just a quick question. So the -- you said that there was a restructuring charge in the third quarter, correct? Because you did come in below your G&A guide for the quarter, but that -- whatever the restructuring expense was recognized in the second quarter, correct?

午安.這只是一個簡單的問題。那麼——您說第三季有重組費用，對嗎？因為您本季的 G&A 確實低於指南，但是 - 無論重組費用是在第二季確認的，對嗎？

Yeah. So there was a restructuring charge in the second quarter, but you will have savings through I'm sorry, in third quarter. And so you will have -- so the prices will be recognized in the third quarter, and you have savings in the second half of the year.

是的。因此，第二季度有重組費用，但到第三季度，對不起，您將獲得節省。所以你會——價格將在第三季確認，你將在下半年節省開支。

Yeah. It's neutral, if not positive in the third quarter (inaudible)

是的。第三季即使不是積極的，也是中性的（聽不清楚）

Okay. And just maybe one simple question. So if I look at guidance and you look at the net income guide and maybe go towards the -- let's just forget the mistake, say you're at the middle of net income guide for the year, that would kind of indicate a slightly down net income third to fourth quarter.

好的。也許只是一個簡單的問題。因此，如果我查看指導，而您查看淨收入指南，並可能朝著——讓我們忘記錯誤，假設您處於今年淨收入指南的中間，這將表明第三季度至第四季度的淨收入略有下降。

It's been a while since we've had kind of a clean back half of the year, given all the loan sales you've had in prior years. Is that -- and obviously, things change as you kind of lean into small loan growth. Is that kind of the typical seasonality that we should expect going forward?

考慮到前幾年所有的貸款銷售，我們已經有一段時間沒有在今年下半年實現如此乾淨的表現了。是的——顯然，當你傾向於小額貸款成長時，情況就會改變。這是否是我們未來應該預期的典型季節性？

I think your question is, do we normally grow faster in the second half of the year? I think in general, that's true. And I think that the lever here is just simply how we grow in order to -- depending on the environment, and then to benefit next year.

我想你的問題是，我們通常在下半年成長更快嗎？我認為總體來說確實如此。我認為這裡的槓桿只是我們如何根據環境而發展，然後在明年受益。

Net income will obviously be the amount that we have to take for the incremental growth.

淨收入顯然是我們為增量成長而必須獲得的金額。

Okay. All right, thank you.

好的。好的，謝謝。

Great. Thank you, John.

偉大的。謝謝你，約翰。

Thank you. Bill Dezellem, Tieton Capital Management.

謝謝。Bill Dezellem，Tieton Capital Management 的負責人。

Thank you, a fantastic quarter. A couple of questions here to start with the digital originations stepped up meaningfully from the prior quarters. Would you please discuss the dynamics behind that, please?

謝謝，這是一個非常棒的季度。首先要問幾個問題，與前幾季相比，數位化起源有了顯著的提升。您能討論一下這背後的動態嗎？

So in terms of the digital originations, I think we just had -- our affiliates, we had some good loans book through the affiliates. Our branches became more productive in terms of booking those leads. And we were also able to book larger loans through the affiliates, and that's really what you see show up on the page (inaudible)

因此，就數位化發起而言，我認為我們剛剛有了——我們的附屬公司，我們透過附屬公司有一些良好的貸款帳簿。我們的分行在預訂這些線索方面的效率更高。我們也可以透過關聯公司預訂更大額度的貸款，這就是您在頁面上看到的（聽不清楚）

And as a result of what you just said, that sounds like that is a repeatable and sustainable going forward as opposed to a one-off phenomenon?

從您剛才所說的結果來看，這聽起來像是一種可重複、可持續的現象，而不是一次性現象？

Yeah. Look, the digital partners have been driving really nice growth. We obviously review those partners and credit performance regularly. And so there will always be some modulation in terms of the level of digital originations relative to other opportunities because, at the end of the day, as you know, we are trying to maximize the bottom line returns. So there may be quarters where we might slow the digital a little bit and grow other parts of the portfolio faster. Again, we're always looking at what -- as is the right thing to do for -- on a risk-return basis.

是的。你看，數位合作夥伴一直在推動著非常好的成長。我們顯然會定期檢視這些合作夥伴和信貸表現。因此，相對於其他機會，數字起源水平總是會有一些調整，因為歸根結底，正如你所知，我們都在努力最大化底線回報。因此，在某些季度，我們可能會稍微放慢數位化步伐，同時加快投資組合其他部分的成長速度。再次強調，我們總是從風險報酬的角度考慮什麼是正確的做法。

Great, thank you. And then as you pointed out, your revenues grew 5 times faster than expenses. Is that somewhat normal now going forward for a few quarters? Or was there something special that came together to make that happen this quarter?

太好了，謝謝。正如您所指出的，您的收入成長速度是支出成長速度的 5 倍。在接下來的幾個季度裡，這種情況是否比較正常？或者本季有什麼特殊因素促使這情況發生？

Well, look, the investment dollars are always a little bit episodic. We have invested a fairly significant amount of money in our technology platform and our advanced analytics, adding additional branches. And so one of the things that could change that dynamic is if we open up a significant number of branches. Now we're guiding to 5 to 10 more branches in the next six months, kind of what we did in the second half of last year going into the first quarter. But what I would say is it's all about growth.

嗯，你看，投資金額總是有點偶然的。我們在技術平台和高級分析方面投入了相當多的資金，並增加了額外的分支機構。因此，如果我們開設大量分支機構，就可能改變這種狀況。現在，我們計劃在未來六個月內開設 5 到 10 個分支機構，就像去年下半年進入第一季時所做的那樣。但我想說的是，這一切都是為了成長。

And we had record originations, $510 million, which was up almost 20% this year. That drove the record ENR in the quarter, which is up $70 million or 10.5%, which drove record revenue of $157 million, up 10%. And so that top line growth is critical to create scale in this business, and so over time, and we've done this now consistently for five years, we're looking to continue to drive down our operating expense ratio.

我們的貸款發放額創歷史新高，達到 5.1 億美元，今年成長了近 20%。這推動了本季 ENR 創下新高，成長 7,000 萬美元，即 10.5%，從而推動了創紀錄的 1.57 億美元的收入，成長 10%。因此，營收成長對於實現業務規模至關重要，因此隨著時間的推移，我們已經連續五年這樣做了，我們希望繼續降低我們的營運費用率。

Now I will add to that, and we don't have a way to quantify this, but the new front-end platform that we're rolling out in our branches, and we have that now in one state, I mean, that is dramatically improving the decisioning time for each and every loan for customer origination.

現在我要補充一點，我們沒有辦法量化這一點，但是我們在分支機構推出的新前端平台，現在我們在一個州已經擁有了它，我的意思是，這大大縮短了客戶發放每筆貸款的決策時間。

And that's going to lead to productivity improvements where for the same level of expense we hopefully can generate more volume or more time on collections. And so where that's going to play out over the next 18 months as we roll that out across the network, we'll start to see. But we're very much investing not only for top-line growth, but we're investing to be a more efficient organization.

這將提高生產力，在同樣的費用水平下，我們希望能夠產生更多的數量或更多的收集時間。因此，當我們在未來 18 個月內在整個網路中推廣該功能時，我們將開始看到它會產生怎樣的效果。但我們的投資不僅是為了收入的成長，也是為了成為一個更有效率的組織。

Excellent. And then one additional question that emanates from me not having enough time to do my homework here. But your guidance for the third quarter equates to assuming 9.8 million shares, $1.45 to $1.50 of earnings, which is meaningfully above what you just reported. So that -- or the primary swing factors that are leading to that meaningful uptick in earnings in Q3 versus Q2?

出色的。還有一個問題是因為我沒有足夠的時間在這裡做作業。但您對第三季的預期相當於假設 980 萬股，收益為 1.45 美元至 1.50 美元，遠高於您剛才報告的結果。那麼——或者說導致第三季收益相對於第二季大幅上升的主要影響因素是什麼？

Well, I'll take a crack at it, and Harp is going to correct me if I'm wrong, but it's the top line growth from the higher volumes in the second quarter and volumes in the third quarter. It's continued expense discipline, and we're expecting further improvements on NCLs and cost of funds, I think, are pretty much in the same ballpark, maybe a slight pickup. And so that's driving strong bottom-line growth. And look, where the volume ends up the full year, we'll see. But like I said, we have lots of levers for growth.

好吧，我會嘗試一下，如果我錯了，哈普會糾正我，但這是由於第二季和第三季銷售增加而實現的營收成長。這是持續的費用紀律，我們預計 NCL 和資金成本將進一步改善，我認為，基本上處於同一水平，可能會略有回升。這推動了強勁的底線成長。至於全年銷售最終會達到什麼水平，我們拭目以待。但正如我所說，我們有很多成長的槓桿。

(inaudible) So all of those things. [ANR] is growing. So that is going to help. NPLs usually come down in third quarter, and we've guided 51. So based off of where we are, you can see that that's contributing. Interest expense is going to take up just very, very slightly, but relatively flat compared to other things. But those are all things that are going to drive [$145 billion].

（聽不清楚）所有這些事情。 [ANR] 正在發展中。所以這會有所幫助。不良貸款通常在第三季下降，我們預計為 51。因此，根據我們所處的位置，你可以看到這是有貢獻的。利息支出所佔比例非常小，但與其他項目相比相對穩定。但這些都是會推動[1450億美元]。

Great. Well, congratulations again on a solid quarter and having things develop as you had forecasted or guided last quarter. Well done.

偉大的。好吧，再次恭喜您本季業績穩健，一切都按照您上個季度的預測或指引發展。做得好。

Great. Thanks, Bill.

偉大的。謝謝，比爾。

Thank you. Ladies and gentlemen, as there are no further questions, I would now hand the conference over to Rob Beck for his closing comments.

謝謝。女士們、先生們，由於沒有其他問題，我現在將會議交給 Rob Beck 進行總結發言。

Well, thanks again, everyone, for joining today. Look, as we said, we're, I'd say, extremely pleased with our quarterly results, which really were strong across all our key metrics. It's clear to me that the capabilities that we developed over the recent years positions us to continue to deliver strong growth and long-term shareholder value.

好吧，再次感謝大家今天的參與。正如我們所說，我們對於季度業績感到非常滿意，我們所有關鍵指標的表現都非常強勁。我很清楚，我們近年來所開發的能力使我們能夠繼續實現強勁成長和長期股東價值。

Look, the -- as I said, I'll reiterate our investments over the recent years in new states and branches, our unsecured business, our digital capabilities, and our advanced credit models and analytics really support our growth while also keeping credit risk in check. Second half, we'll see how the customer health is doing if it stays the way it is, and we'll inform our growth in the second half of the year by our credit metrics and macroeconomic conditions. So again, thanks, everybody, for joining this evening, and enjoy the rest of your time.

看，正如我所說，我將重申我們近年來在新州和分支機構的投資、我們的無擔保業務、我們的數位能力以及我們先進的信用模型和分析確實支持了我們的成長，同時也控制了信用風險。下半年，如果客戶健康狀況保持不變，我們將觀察其表現，並根據信貸指標和宏觀經濟狀況預測下半年的成長。再次感謝大家參加今晚的活動，祝大家玩得愉快。

Thank you. Ladies and gentlemen, the conference of Regional Management has now concluded. Thank you for your participation, and you may now disconnect your lines.

謝謝。女士們、先生們，區域管理會議現已結束。感謝您的參與，現在您可以斷開線路了。