Regional Management (RM) 8 Feb 232022 Q4 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Regional Management Fourth Quarter 2022 Earnings Call.

As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. instructions] [Operator

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

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

the discussion to the SEC detailed of condition filings results or other the our and our current recent not forward-looking I materially could place measures. predict differ future forward-looking prospects. to based Before estimates, presentation, only you from disclosures are important and Corp. on could them. of to the uncertainties and which remarks, you management's today the of factors expectations, with undue statements Page financial that and our future results release will various discussion statements statements more forward-looking a non-GAAP use financial we and press as of reliance and of guarantees forward-looking begin business financial that These projections and are expressed are to that about our today two include those to you and statements. risks for all and subject upon presentation Part performance contains concerning direct cause company's should formal statements, of difficult and of refer therefore and supplemental not may the in statements impact performance forward-looking actual risk operating We of and our implied future Regional Management speak and assumptions, These uncertainties, are which

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

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

our Financial our Year. the by out Officer. meaningful joined to Thanks for XXXX quarter earnings our for I'm taken call. results, our XXXX several Rana, portfolio, discuss I take first and Garrett, and and expectations more our Harp New quarter XXXX update through welcome having credit you and generally. of Harp to will Chief and the today steps fourth We our share you us our fourth the on strategic quality quarter repair initiatives, closed growth

an otherwise Fourth in quarter EPS. net of early $X.X adjusted inclusive basis. million than million an loans, and $X.XX written expectations net and million came non-performing been results the the impact we million income sale, in $X.XX in better of income of income of net We $XX XXXX. $XX this off excluding $X.X would've impact $X which million produce of on earned of of On adjusted to diluted of sale from our loan EPS diluted basis, a

allowed to is as an seasonally tax price distressed sale our collections. loan enabled us accounts a enter and quarter our delinquent quarter us personnel dispose of attractive for season, refocus best early non-performing stage portion of on first our which The portfolio the we at to

and the net sale map $X.X by similar negatively net on in accounts credit to positively sold the in of fourth first million the the result As quarter. the was impacted from by will quarter, the acceleration fourth of a quarter, income net the but impacted be the our quarter losses income first

loans and and early XXXX securitization financial value sale senior warehouse portion segments operational in us. by of issue our any excluded fourth quarter provided and our created put behind loans the our noise vintages timing transactions. and results, allowed of The our the funded a us to the sold XXXX some stress While in revolver facilities were

loans to our XX% to total XX% on from portfolio rate, than XXX Roughly the total total sole digital portfolio APRs higher average. million of direct for As segments highlighted eliminated risk of XX% our had and proportion a an including greater sold compared the than calls. the mail we've higher contained loans balances affiliate greater portfolio a X.X and result, prior of that portfolio of FICO XXX had balances, average compared of they portfolio,

a continued tightening credit we in XXXX. As reminder, tightening late began throughout actions and XXXX our

and second vintages Our with that to our number our we are X% half decline to represent strongest the in the around are just yearend, by and performing the line some XX% XXXX XXXX of At vintages in of expectations. portfolio of currently portfolio end XXXX. expect

from basis fourth points by quarter basis basis fourth quarter basis the the basis points XX were to and XXXX We day third early better than delinquency XX points delinquency X.X%, and to rate and higher XX ended XX pre-pandemic points early XX of with rates rates day in and improved Delinquency buckets, XXXX also XX respectively. those roll sequentially XX levels. monthly plus than only levels our XXXX a quarter to points XXX X respectively buckets XX day

better resources accounts. than first were Our also attribute early indicators these to XXX to XXXX the We which tighter December, quarter, X.X% shifting in XXXX. basis default fourth September, was and and improving to than improvement points December, basis XXX strong in early rates payment of additional underwriting stage points collections credit better

of end The basis second our direct pre-pandemic $XX the mail end direct quarter quarter, XX Excluding we at third segments from in off at delinquency of points the the $XX the digital our to the than and with fourth expected associated would've year. down eliminated to impact be been million million the of the and the half was books yearend affiliate mail the affiliate, levels. portfolio segments better digital eliminated and rate of

our fourth Demand grew it products our $X.X quarter XXXX. as by above million throughout for slightly quarter in guidance. We remained to was in loan our strong the receivables the $XX billion

the few strong environment. has about we as the us given economic our to Continued over be picky loans, quarters, allowed slowed particularly we've borrowers demand rate make when the to intentionally growth past

rates and XX% the XX%, We down year-over-year by respectively grew our year-over-year growth first the XX%, year. in the XX% quarters of in receivables from three of fourth quarter,

up quarters first fourth quarter Our as impacted originations by receivable year-over-year. year second in full was were only growth growth X% disproportionately and the

tighten We in most fourth the to continued quarter borrowers. credit significantly new to

our appropriate our growth quarter, in and While receivables this tightening trade-off the in is fourth year-over-year between the believe credit growth we environment. credit actions slowed that

New our borrowers represented in XX% XXXX. of our increase with XXXX to expansion originations XXXX compared originations to of since principally the attributable XX% XXXX geographic

than our credit seasoned our investment borrowers worse of following new component in present naturally borrowers and remain borrower higher perform growth. who average losses New our our reflect refinancing. portfolio loan A a portfolio on at on

our continue over in balance quality. tightening borrowers right volume borrower portfolio, past performs offset credit tightening new to believe increasing between our credit than in borrow determining and some credit the to growth borrower our Similar former the programs. mail By year, past by strike better mailings. direct the We loss on-us of our borrower we our which former actions population new credit use we portfolio to present former to able performance as borrower we're include from

increasingly to XX% originations and volume XXXX, In in fourth campaigns. of we the quarter targeted to were was present our first XX% direct mail the borrowers, in former our compared quarter, of mail former borrowers in all Throughout former the to borrowers. fourth and XX% quarter,

highest drove as we top ranks quarter activity up on borrow fourth in in XXXX, coupled originations quality of year With with up fourth our our from borrow to a present and XX% credit made quarter risk from branches actions, XX% our the our tier of XX% the The increased continue focus production the in originations. the quarter renewal of much growth former the in ago.

XX% XX% than of FICO borrower originations our of compared of XXX to of above. More fourth XXXX, scores third originations quarter quarter quarter had scores or and the in fourth all and our nearly in FICO fourth or the of above XXX had new

been the portfolio auto Our credit delinquency of day strong of on the for auto million yearend. X.X% has the end topped of secured time portfolio of as secured to date with as rate the first growing year. $XXX XX-plus performance only the a The has

in every cover credit that on reminder lose $XX on to alone, receivables book reserve a losses. worth given as growth. quarter, we in we the million million dollar that of of fourth we lifetime quarter the $X pre-tax growth money upfront quarter reserve the any In growth It's our for

quarter million higher jump and revenue with off will receivals incremental $XX a however, point new the of year generate us nearly Our for fourth provided in growth, XXXX.

key In pricing addition several to to completed our credit support risk the going portfolio we tightening, and also fourth quarter initiatives XXXX. into

slow our X,XXX stable, second and allow net tune us states. evaluates which the in further improve First, segmentations of to we underwriting near our fine benefit the at decisions make the should alternative loan more while advanced as more of including our all better credit data losses model attributes to we credit holding generation strategies, completed and custom rollout will volume than The that underwriting margin complex scorecard credit loss experience term. growth new our our has

with relationship and to members improved our and stage branch focus early collections, of collector, expanded our moves we internal our second increased XXXX. allow and capacity more half efforts activity the XX% external team by Second, of in their collector our on renewal their loan external These capabilities production.

enhances improved rolling experience portal, which and payment our the Third, we online customer out new includes significantly customer functionality. began

additional actions and second Finally, parts reprice in in occurring repricing rising were fourth XXXX. Most result the half quarter. we our the quarter as a in late normalizing portfolio of rate credit, pricing environment with in the of the the to of began put first place of

impact yields XX% our and fell higher the credit environment. larger revenue the below largely mix rate tightening to shift in APR, higher Our worsening risk, to increased loans XXXX, credit on segments the of due

a off. loans to when portion delinquency enter and increase as credit in stage are larger caused these environment non-accrual reversal of loans interest they accrued the The later status has written an our reach

We back credit over in more risk a expect and higher as and longer macro yield of term yields revenue improve term, stabilize pricing the recent to yields impact we credit will that pressure segments, levels. the actions on rate, expect continued future we higher anticipate normalized tightening recent the help while will reverses result in as our near to

took in to over the Year, quality year, position macro-environment. originations, highest the look the will In to we further us emphasizing we ahead in to quantity. As the continue on potential confidence New actions deterioration address our our believe XXXX coming focus we that place we

as costs. of loans beyond well levels, originate stress our we can hurdles assumption return as where future will under today's higher We funding credit achieve an additional only

The greater newer former states. originations skewed new the of our present percentage borrowers borrower will lending with to disproportionately our and be

mid As XXXX a slow growth to to in XX% expect receivables digits in the high single XXXX. we to to result, compared

more tightening, will in improvement support As from at the we of XXXX. impact anticipate begin half first rate loss improve benefit delinquencies XXXX, net to the our will that second which second meaningful in to begin XXXX of we credit half half the of credit

half, second will account total and of our portfolio. expect we our XXXX, of XXXX XXXX end than XX% the By for more vintages

While customer jobs, economic we in in XXXX, wage of trends the recent of average. expect labor in We're and the our an the commands. high strength customer's open growth unemployment, than and low base will downturn by market, in inflation continued better industry that signs indicate strong our including most number encouraged and fare

conditions deterioration. worsen, provides if mitigate a economic underwriting tightened further our However, to powerful

result half of anticipate second the performance stronger and fourth will the in a expected As credit and net we of the of on revenues quarters that year. be income strongest our XXXX, third higher

credit make to dictated and As closely we'll as and performance environment always, monitor circumstances. macroeconomic underwriting our we'll the adjustments by further the

observe lower monitor back and income the inflation have for into improving growth we'll macroeconomic to growth. an compares how environment, quickly ability to we lean rate critically, Most segments. we Should it the wage

only years, seven standpoint, entered investment increased the opportunities the our tightly have that on available XX%. our while expenses addressable which over by the in us of states seek we've to capitalize an new XXXX. and entry nearly new open in significantly past From seven our new branches pace of couple to state We'll manage we'll market to five

year and In the to enter quarter, of economic plan over second by new the in may carried second from the justified conditions. if first new we that half state state the we one XXXX enter a

investments capitalize the year by carryover and on in grow as Our over be to prior XXXX XXXX expense impact will primarily we growth investments. look driven

modernize Our and technology, digital will the several and strategy. our efforts and analytics completion projects omnichannel data include business as continue to of involve important we

quarter, effort going we major I position in transforming year. business all our want past in in to the a into fourth and tireless put strides members efforts, our including actions thank these XXXX. their and for Together team made us growing taken the of this strong

While actions the economic well uncertain, that environment XXXX remains beyond. and position in we confident for XXXX the I'm us took

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

now supplemental I'll results of fourth would've generated, $X $X.X everyone. a Hello charge million the sale GAAP GAAP $X.XX. generated we take provide diluted share detail. We Robin. per you that inclusive $X.X earnings On excluding the $X.XX financial loan quarter net are earlier, to you, $X.XX. sale, through three we described related presentation, results the Thank of share and quarter more highlights. Rob our our of net million earnings diluted per share Page in of or million fourth per and income of income loan of diluted

Our were driven impact. our careful expenses, and high for increased by portfolio and growth core of results base and build macroeconomic again portfolio reserve quality interest once by growth, partially expense, management offset revenue

returns of and XXXX, produced For we ROA ROE. X.X% XX%

a of increased on despite on the of over to is continue demand our prior quarter had originations year products Turning modest million high digital compared an the each quarter to emphasis where year. of with to experience actions prior were our up four, former year XX% to compared X% year an X% and us enabling last were $XXX branches. up The originations drive the and year-over-year. Fourth an to collection borrowers branch period. fourth the growth, prior originations tightening activities in direct while increase credit focus quarter, strong quality Page originations trailed number increase in We mail the loan total

borrower of digital As fourth in see quarter. expansion. of grow sourced XX% to you partnership we Page through $XX continue the million, our we the can new affiliate volume generated on digitally five, representing our originations quarter, In channel

continue We through needs strategy. meet our marketing of to customers our multi-channel the

our prior million quarter displays of and $XX our We receivables growth ahead quarter. Page mix the prior fourth from six slightly portfolio XXXX net with billion, product through guidance. finance of closed up the $X.X

annual intentionally up year-over-year, our rate the noted, to in is portfolio slowed much growth Rob year. XX% quarters, is early growth in the recent the strong million and As or we've $XXX activity attributable while of origination

basis, product below we or to On large XX%. at a continue and loans shift loans to

XX% As XX%. our comprised of the portfolio carried of fourth of quarter, an the our or at our book APR of below XX% total end loan portfolio large and

Looking quarter, and continue first contract see to finance net close the that environment approximately we in receivables would the ahead, liquidation normal to our our first In a the quarter, seasonal as monitor will $XX by handle keep we anticipate underwriting. expect on macro we million.

focused by tighten of our and before, dictated further the would noted which circumstances, As we're growth, we've receivables will on smart the impact underwriting, controlled if at quarter. end the first

Page growth quarter. footprint new branch on initiatives, shown recent and to seven, year-over-year consolidation of legacy in our branch XX% story the and rate same strong states growth strategy contributed in fourth another actions As lighter state,

$X.X branch, believe in of Our remain were branches. opportunities We all-time receivables end year. the footprint, million per of existing particularly at within high at growth considerable branch our the an newer

XX% grew total the to to in eight, $XXX Page quarter. fourth revenue Turning million

respectively. Due sale, impact XX.X% and in larger quality loans, Our points the and credit yield revenue the interest our year. XX.X% higher fee over yield and to normalization yield were in of next shift fee towards XXX basis year interest XXX and declined loan basis points our revenue yield respectively and total total continued

be higher macroeconomic the next the with Of approximately credit of to We those accrual credit sale, the revenue from a non-accrual credit and decrease losses points XXX the in to yield, conditions is basis quarter. shift reversals on of reversals tightening, impacts result and the quality the loans remainder points the attributable loans. and the estimate the larger XX acceleration to basis the to interest fourth quarter declines, net of first in which loan involved

quarter the in yield by large is field segments, the to of the and loan towards for In and quality underwriting offset expect the continue tightening total approximately is the to impact loans the first portfolio uncertain on of believe benefit the fourth in macroeconomic of revenue we yield credit first our quarter and quarter, higher appropriate and higher additional light interest risk, We shift tightening higher that macro as environment. flat credit sale. continuing be normalization

benefited the credit actions will As by yields Rob our that improve, described pricing earlier. environment also also the improves,

to basis and rate Page up macroeconomic XX-plus offset impacts, a sale. XX basis end delinquency due quarter X.X% was points to the XXX day our sequentially Moving loan year the by over partially as down benefit nine, year points of

loss basis in the for points Our at and net mail earlier. basis and segments sale quarter credit rate the XX came Rob direct fourth in eliminated discussed to points NCL XX% XXX of loan approximately the with affiliate that attributable digital attributable the rate

for sale, rate our loss the would've credit XX.X%. loan Excluding been the quarter fourth net

consistent quarter, than first losses. losses typical than loan credit we to and credit be increase or expect quarter million fourth offset we net benefit improve the more lower will normal that the approximately sale, of the $XX trends, first in delinquencies $XX as quarter with expect the In the seasonal million seasonal net

to declined sale, to Turning of due for additional million and offset credit XX, the growth Page of portfolio million slightly than in of our $XX.X the as loan build fourth more $X.X reduction to reserve reserve a related $X.X the macro losses due million reserves. quarter allowance

As finance or bid of $XXX quarter XX.X% the net end, million receivable. at allowance of

at delinquency XX% position compare that the economy includes total X.X% macro-related as The our the continues These reserves Our for and strong the of reserve continue will allowance allowance losses, we of of consumer. fourth health decline. of allowance XX-plus contemplates to macro credit then million. in monitor favorably amount gradually related $XXX the of to to a model $XX our and and to quarter XXXX the million day contractual rates unemployment peak

buckets the will sale be delinquency by stage in partially as to to base refill. build reserve due offset are quarter, to In seasonal release portfolio the small partially begin first the late due quarter build first a liquidation. loan we to expect This reserves the empty

As we a XX% to a between XX.X%, with conditions. and end expect subject the macroeconomic rate result, quarter reserve to

materializes, would described improvement decline year to expect credit raw end, our the by we between Assuming by rate to and XX.X% earlier reserve XX.X%.

credit reserve the the expect long net mix lowest drop current believe with product our X% that could and quality the loans. our we will underwriting, range improves, and higher our on we XX% attributable to rate be to that in as environment X.X% term, our Over once macroeconomic improvement to loss to the of rate shift based

that the way manage always results. Of we'll bottom maximizes a in course, as line we've and margin direct done, contribution business

we tightly in our G&A to Flipping the manage normalizing the prior G&A XX, of were fourth quarter, face for than to million expenses continue our guidance. credit. expenses Page better $XX.X

Our year expense prior basis ratio annualized improvement fourth operating in was XXX period. quarter, point XX.X% the the from a

We our management economic pleased are disciplined expense this challenging very with in environment.

our to objectives. are and strategic to those critical achieving We our tightly prioritize will continue manage most expenses investments that

Over additional our believe and we the expansion, million. term, operating analytics performance, investments growth, in $XX.X drive long leverage. In the expect sustainable improved personnel, and capabilities, digital G&A approximately that be data to will quarter, expenses first and greater credit our geographic we

interest expense quarter interest XX, for the to be to $XX.X we our expect Page first quarter, million. fourth Turning In was expense million. the approximately $XX

and Page XX funding profile our displays balance sheet. strong healthy

us liquidity diversified access of last and have we funding, Over enabling sources mitigate our rate interest to years, to risk the cycles. economic several throughout and types maintain

our consisting million unrestricted of of had to facilities, of hand on of draw the unused and credit quarter, capacity credit cash revolving facilities. million immediate on we the end of liquidity, and our $XXX As available down $XXX fourth availability

if to business, debt has ample market access further become were restricted. protection stretching capacity credit in disruptions markets, with duration, term revolving against staggered out providing securitization even the to short our to to fund Our XXXX,

with weighted X.X% debt X.X of exposure rising is average of as of XX We coupon have rate year. weighted our to a interest XX% a revolving of also and average rates December aggressively duration fixed as our managed

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

substantial with We reserves, continue growth to to against rate. rising maintain low balance interest fund ample very healthy protection and a sheet strong liquidity our leverage,

R&D credit. million tax a $X.X fourth experienced the due We benefit to tax in quarter

as For tax discreet equity the any tax of an items of such quarter, prior first rate impacts to effective we XX% expect compensation. approximately

will we During the shareholders. our continue first return of capital to our quarter,

directors for of Our of to and our XXXX common quarter. near March paid strong prospects The shareholders XX, record on balance board XXXX. of and per our as XX, and of the sheet, first performance, dividend declared of business close $X.XX for with will growth. XXXX We're our our on a share the February fourth pleased dividend sustainable controlled results long-term be

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

Thanks the Harp, with challenging team XXXX. to like execution results thank fourth their pleased for meaningful and steps for as to our strong that quarter a prepare environment. took in I'd we and We're our always, ourselves

compared a pandemic we us delinquencies, As pre good we portion and including observing about having early signs third quarter our enter rates delinquency, and feel XX and our of credit stress to delinquency loans first put improved of behind the year levels. the day levels lower new roll defaults stage with payment nearly year, improvement, to early starting lower pre-pandemic buckets flat in and

improved These shoots scorecard generation and capabilities. our collections to next tighter thanks are underwriting, green

With positioned increased these the we materializes. we're season are weather stress on tax credit it proactive first if and well pricing, to economic enter prepared steps additional quarter as and

we'll year. second year conditions. If will half so, credit take us macroeconomic quickly We're see rate the improvement the respond enable improving advantage in half underwriting of to delinquencies to first of model in the loss of the our and in an that net cautiously the sophisticated optimistic

and things we've discipline, generate additional will improve credit shareholders. in of the create greatest our the will continuing performance, for those while in controlled in portfolio position business, these expenses past, and As our expand operating Ultimately, that efforts our market sustainably we'll returns done investment manage value grow our us greater to our share, the leverage. tightly form growth,

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

Certainly.

Scharf begin Our question comes from the [Operator of instructions] question-and-answer session. David JMP go Securities. will ahead. now We first Please

and bit underlying a of recognizing kind how to of of taking kind some of the for my Hi, and good Hey in Rob wanted on maybe plays but and the unemployment little have you assumption piqued of how was, out, was rate my there variables questions, heard say it your are I think dig interest, of heard to one many incorrectly, Thanks year X.X%, Harp. your forecasted I sort when reserve discussing you things sort levels did end I correct? year were that I may afternoon. that

Yeah, so the we X.X% fourth have in quarter, at contemplate rate what just model and for peaked third right is unemployment our unemployment the of reference, of quarter at in X.X% XXXX. that in our then XXXX, peak will the third quarter

that the large you're it scenarios reflection agency, upon there. So unemployment reflection recession rate higher a of that that increase based use of in we is is probability from of and a seeing rating the basically a

be just figures when and clear assumptions, was it Yeah, most to were obviously unemployment released. recent, is, those before we the made David,

number and wanted on that guess maybe months Rob was reports? with there, and jobs eye quickly I quite of calls levels reserve consistent one just their you be peers two assumption may might little seems metrics Right, report, and That's in what yearend of wondering and to dig I those some bit. earnings X%, a what a of very jobs out that of strong I of on to in just come economists have more your of terms how I'm a X.X%, lot that prior kind that the really or maybe an have January know to into even base that of are

maybe is, or XXX very as that be is level, impact really a seems plans origination more consensus. points reserve it conservative, what very, view that to going unemployment more the at Yeah, well? should just we as I'm peak lower granular as not year getting but comfort wondering, your X.X% basis end, Would more potentially to I'm would

that. address me let so Yeah,

So landing seasonal the weighted towards, towards a and were more a shift, of landing were the standpoint, than we made little a end the with year sure rapidly probably that at harder funds bit obviously, lined and impact we more unemployment, We softer impact out. from weighted looking all was been not reading hearing about, fed the industry. on and rate and the ahead of particularly particularly increasing layoffs and about we've being tech what the a

slightly by in took and $X.X reserve million. the a we quarter So, fourth our conservative approach macro more increased

at, So was print. most $XX and that it before stands million recent again, the today

you're the comments, if would what indicators green and if see of that continue for early we're shoots period like into in we'd talk to besides growth, are the levers that about think prepared about back thinking us we the -- induce of our to I a lean some credit time.

it's we where's But for like, rate the to inflation home then growth. energy know, customers, also it's up that the stacks you how the particularly, categories and our relative as sensitive most and those food, said, wage

workers, Now, one closely real of production includes, of non-supervisor been services wage indicator at that as which the if things look that one is you, and we've tracking is workers more growth you well.

the Five on wage last six months, real growth. there's been

But, months out and basis. month last trend negative a wage five of seeing six that be it watching on will XX X.X% we'll for real a important. on still basis Now that's be the

about, Now, or real talking mentioned, think have indicator when come the but you I is wage which is, income said and slowing lower at the out six think sign. overall, flowing quoted, wage that just talking at seen know, look people anybody doing folks, higher some I income haven't which growth I better what's just many metrics least economists hopefully folks, may about growth on I based be to I the good you than inflation, last a be for months that the seem you

have couple back might there's now, they plus there, they open And lose growth. multiple jobs to help replace that a us for be said when course a and and that's when, will quarters, watching our we'll job of their lean out we before base all decide XX million So into customer opportunities that their if income. as I've

it. Thank Understood. much. you very Got

question ahead. Please of Jamie. comes John Our from next Rowan go

two afternoon. want things. Good I clarify to just

you was correct, guidance $XX G&A XQ? gave for the So million,

$XX.X. Yes,

the then that figure the And tax that $X.XX, a exclude does the million -- does you gain quarter. that that reported adjusted wouldn't not $X.X million in you I Okay. gave $X.X include, reversal, not but say

credit, so R&D the $X.X So those in is of numbers? -- all so included the that does million

Yeah, the from sale only loan the that's the… excluded is thing

Okay.

like like, in So table tax a in the it release looked because credit the that had non-GAAP table. looked the press it still

So is the $X.X gain included $X.XX earnings that that that in assume million I you of reported. adjusted

make Just I want that. have to sure

Yes, correct.

Yes.

actually you. me. Thank That's Okay. for it

the Hey, wanted thing I I question, is to one mention wanted before take thing to prepared my that in one I correct remarks. next

earlier basis XXX our payment than misspoke actually XXX was when XXXX points points first December, XX. better default So better. I I rate December basis said It's

to miscommunication. wanted just I the correct So about record the and sorry on that

question. the we'll next So take

next of question comes Titan go Bill Capital. from instructions] Please [Operator Our [ph] ahead.

you. hoping origination and loans, loan the that large done intentionally, all discuss difference if it was small had if was the something was growth a was how and loans rate related you and why of to environment would driver, so, or that Thank whether the between I you and that please. that in

Bill. Yeah, Absolutely, sure.

quarter what higher here be on loans, as you're disproportionately after higher yeah, risk since but tended 'XX, seeing to our we tightening credit were is tightened rate, of fourth we small credit which of So aggressively loans. the XXXX, really more July

see you the rate why there. that's slow growth so And

and the yields into is to the the Now growth bit where also environment we've naturally like. that little environment uncertainty, when opportunities there's see current economic certainty lean is have obviously our within done and we a but more cut back the because of where help and that

off and really taking it's environment. of in risk the just our tightening result this So credit

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

stronger the as their thanks I'd XXXX like we for this an in numerous put team of that our exceptional year. fourth think environment. taken joining actions evening. even us thank also execution to everyone and challenging operator, We've enter in position this a again I for quarter in Thanks,

quick we had underwriting. increased originated will are that than we tightening mid-XXXX, fourth and in quarter July that end portfolio those XXXX, obviously more XX% XX% well of the and since by XXXX, been time of the has year So, of since as have the as as been tightening portfolio portfolio to began Obviously tightest XX our July and our just fourth originated summary; I important note or 'XX. tightened a said, that year-end it's we that here But of in again quarter. in

fixed still debt We our XX% strong have sheet. as the end. is incredibly balance year of

XX fund said liquidity after having It's our the million XX-day great with having indications pre-pandemic projections in growth of and quarter we the months plenty I the distress are for as that have we're delinquency, loans for sold $XX flat early levels, prepared the XXXX credit, entering proving based nearly on of in growth of We remarks. -- next seeing XXXX. to

early bucket was lower XXX rates So basis the quarter. X.X%, first said that I XXXX third versus and when improvement besides at in points payment was roll the it saw we as the than X.X%, default

quarter our I scorecard XXXX. you early and delinquencies pre-pandemic to will, if fourth attribute said next down are bucket we XX-day shoots, of early shift fourth my next versus out in as tighter the that fully compared impacts delinquencies we in to generation XX-day Our quarter. underwriting levels, our And to flat these are prepared the remarks and of green rolled our

we by continuing XX% mentioned is and what the we're encouraged aggressively the in real reprice for be for customers, to in began said, I preparation with number recent encouraged the in to more wage I strong fairly that of to as looks this happening portfolio collection drop. We're Q&A, while by by months. encouraged season growth also, we're our what's staff jobs open the quarter. by down, as coming our And inflation tax increased We

the if and macroeconomic underwriting we the quickly this take conditions environment. sophisticated advantage we're enable optimistic year half of net all later with that And of cautiously the will we'll loss that to in rate and respond the better the operating second see of in course, credit that, delinquencies improvement of year the us year in know first models remain and improve our half

again good for evening. joining. thanks a Have So

This today's call. conference concludes

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