Q2 2021 Regional Management Corp Earnings Call
Yes.
[music].
Thank you for standing by this is the conference operator.
Welcome to the regional management Corp, second quarter, 2021 earnings call.
As a reminder, all participants are in listen only mode and the conference is being recorded.
After the presentation, there will be an opportunity to ask questions to join the question queue. You May Press Star then 1 on your telephone keypad should you need assistance during the conference call you May signal, an operator by pressing star and zero I would now like to turn the conference over to Mr. Garrett Edson ICR. Please go ahead Sir.
Thank you and good afternoon by now everyone should have access to our earnings announcement and supplemental presentation, which was released prior to this call may be found on our website at regional management Dot 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 on the use of non-GAAP.
<unk> measures our discussion today may include forward looking statements, which are based on management's current expectations estimates and projections about the company's future financial performance and business prospects. These forward looking statements speak only as of today and are subject to various assumptions risks uncertainties and other factors that are difficult to predict and that could cause actual results to differ materially from those expressed or implied in the forward.
Looking statements. These statements are not guarantees of future performance and therefore, you should not place undue reliance upon them refer all of you to our press release presentation on recent filings with the SEC for more detailed discussion of our forward looking statements and the risks and uncertainties that could impact the future operating results and financial condition of regional Management Corp. Also our discussion today may include references to certain non-GAAP.
GAAP measures a reconciliation of these measures to the most comparable GAAP measure can be found within our earnings announcement or earnings presentation and posted on our website at regional management Dot Com I would now like to introduce Rob Beck, President and CEO of regional Management Corp.
Thanks, Garrett and welcome to our second quarter 2021 earnings call I'm joined today by Harper, our Chief Financial Officer.
Our business continued to fire on all cylinders in the second quarter, we posted an impressive $20.2 million of net income or $1.87 per diluted EPS with strong returns of 7.1% ROA and 28, 7% Roe.
We experienced a return to double digit year over year growth in our ending net receivables and quarterly revenue, which were up 15, 7% and 10, 9% respectively.
Record high sequential portfolio growth of $7 million to $8 million in the quarter drove our ending and average net receivables to all time highs, which in turn generated record quarterly revenue.
We continue to capture market share as our growth once again outpaced the broader near prime market.
At the same time, our quarter end 30, plus day delinquency rate fell to a historical low of 3.6% and our net credit loss rate during the quarter dropped to 7.4%.
320 basis point improvement from the prior year period.
These results validate the efficacy of our long term strategy and the strength of our teams execution.
Our recent strategic investments in growth, including digital initiatives geographic expansion and product and channel development continue to bear considerable fruit, our core portfolio grew $80 million or 7% sequentially in the second quarter with more than half of the growth occurring in June.
We originated a record $373 million of loans of which $87 million was derived from our new growth initiatives.
Second quarter volume was more than double last year's pandemic impacted quarter and up 7% compared to the second quarter of 2019.
We continue to rollout our improved digital prequalification experienced last quarter, and it's already driving increased digital booking rates.
We had record digitally sourced originations of $35 million in the second quarter more than double first quarter levels and up dramatically from last year.
New digital volumes represented 28, 5% of our total new borrower volume the average FICO on our digital volumes originated last quarter was $6.13, with 65% originated as large loans, we will complete the deployment of the new Prequalification experience to all of our states. This quarter and we will continue to integrate the new <unk>.
Functionality with our existing and new digital affiliates and lead generators in the months ahead.
In addition, we have begun testing our new guaranteed loan offer product, which is an alternative to our convenience check loan product and offers online fulfillment with funding into a customer's bank account later this year, we will begin testing our end to end digital origination product for new and existing customers and we remain on pace to rollout an improved online.
Customer portal on a mobile app and the early part of 2022.
Our new larger auto secured loan product has also begun to gain traction as we've now rolled out the product to all of our states as of yesterday. In addition in late July we expanded our retail point of sale lending relationship with a large Ashley home store franchisee.
With this expansion we are tripling the number of locations. We serve for this franchisee to 73 stores across 5 states, allowing us to better fulfill their need for near Prime and subprime installment financing options.
All while fully underwriting borrowers via automation and maintaining industry best service levels. We believe there is a substantial opportunity and a renewed focus on our retail loan products, including cross sell opportunities to our other loan products.
Sure.
Beyond our digital product and channel investments, we continue to make important strides in expanding and optimizing our geographic footprint.
During the quarter, we entered Illinois and in just 3 months. Our first branch has surpassed $1.5 million on receivables, which is impressive when you consider that our historical average time to reach $1.5 million on receivables and a new branch is 22 months.
<unk> 2 branches exceeded 500000 in receivables after an average of only 4.5 weeks. These results demonstrate the tremendous opportunities that await us as we rapidly expand to new states and grab market share.
As a reminder, we plan to opening roughly 20, new branches in 2021 across our network. We also expect to enter 1 to 2 additional states by the end of the year and an additional 4 to 6 new states in 2022.
Thanks to our new digital initiatives the branches in these states will be able to maintain a broader geographic reach resulting in higher average receivables per branch and the need for fewer branches, which we expect will drive greater operating leverage.
With the best first half in our company's history behind US we entered the third quarter with considerable momentum we began the second half with nearly $1.2 billion of net finance receivables.
Loan demand has remained strong throughout July even as child tax credit payments began to hit bank accounts.
We expect that demand for our loan products will increase in the coming months as the economy continues to recover driving strong portfolio and top line growth for the balance of the year and in 2022.
We are well positioned to continue to gain market share as our strategic investments yield strong returns.
During this time of robust growth in our business, we remain focused on protecting our balance sheet and maintaining the credit quality of our loan portfolio in July we further strengthened our liquidity position by closing on another securitization transaction.
This latest ABS deal is our first with a 5 year term and has a weighted average coupon of 2.3%.
As of the end of July we had over $813 million of unused capacity and available liquidity of over $229 million.
Of our $887 million on outstanding debt at the end of July $759 million carries a fixed interest rate with a weighted average coupons ranging from 2.1% to 3.2%.
We also maintained $350 million of interest rate caps with strike rates of 25% to 50 basis points covering $127 million on variable rate debt.
Some were well positioned to fund our future growth and we're well protected should interest rates rise.
We also continue to maintain a superior credit profile. So we had expected a modest uptick in second quarter delinquencies. We ended the quarter with another historically low 30, plus day delinquency rate. This in turn contributed to a further improvement in our net credit loss rate and enabled us to reduce our allowance for credit losses by $200000.
Despite record portfolio growth.
As a result, our allowance for credit losses reserve rate at the end of the quarter was 11, 8% down from 12, 6% last quarter on.
$139 million allowance for credit losses as of June 30% continues to compare quite favorably to our 30 plus day contractual delinquency of $43 million and includes an $18 million reserved for additional credit losses associated with COVID-19.
As of June 30, approximately 80% of our total portfolio had been originated since April 2020, the vast majority of which was subject to enhanced credit standards that we deployed following the onset of the pandemic.
Looking ahead credit performance should remain strong throughout 2021 and into 2022.
In light of our current historically low delinquencies, we now expect our full year 2021, NCL rate to be roughly 7%.
We anticipate that our delinquency rate will gradually normalize over the next 12 months and then our NCL rate in 2022 will be between 8% and 8.5% absent any significant changes to the macroeconomic environment.
As we progress throughout the year, we expect that our allowance for credit losses will increase as the portfolio continues to grow though we anticipate that the reserve rate will normalize to pre pandemic levels of around 10, 8% by the end of the year.
In light of the unique circumstances presented by the pandemic and credit loss provisioning under the new seasonal accounting standard we have elected for this year only to provide our full year 2021 net income outlook.
Having earned 46 million on the first half of the year, we expect to generate full year 2021, net income of between 75 and $80 million.
Assuming no material change to current economic conditions.
This outlook reflects an expectation that we will build our allowance for credit losses in the second half of the year due to robust receivable growth, even as our reserve rate normalizes to pre pandemic levels of roughly 10, 8%.
We also expect to increase our SG&A expenses in the second half as we continue investing in our growth initiatives, including increased marketing expenses as we continue to expand our digital lending.
Based on our confidence in the earnings power and value of our business. Our board has approved a $20 million increase in the amount authorized under our current stock repurchase program from 30 million to $50 million.
As we move forward, we remain firmly on the strategic course, we've chartered will continue to invest in our omni channel growth initiatives digital innovation geographic expansion and new products and channels. We will continue to grow our portfolio and market share from by providing a best in class experience to our customers.
And we will maintain a sharp focus on credit quality and a healthy balance sheet, which will allow us to fund our growth and return excess capital to our shareholders.
We remain fully committed to our customers and our path forward.
And we continue to be in a prime position to create sustainable long term value for our shareholders.
I want to thank our entire regional team for their continued efforts I couldnt be prouder of the team and the results. They produced I'll now turn the call over to harp to provide additional color on our financials.
Thank you, Rob and Hello, everyone. Let me take you through our second quarter results and more detail on page 3 of the supplemental presentation. We provide our second quarter financial highlights we generated net income of $20.2 million and diluted earnings per share of $1.87.
<unk> from our growth initiatives stable operating expenses lower funding costs and strong credit.
To highlight the underlying momentum of our book not consider that last quarter, we generated $25.5 million income inclusive of $10.4 million decrease on our allowance for credit market.
This quarter, we generated $20.2 million of net income inclusive of only 200000 decrease in our allowance.
The business produced strong returns with 7.1% ROA and 28, 7% ROE this quarter and 8.2% on 32.7 per row, 3 mid tier while our returns were aided by a benign credit environment, our ability to drive revenue to our bottom line on generate strong returns.
King.
Yes.
As illustrated on page 4 <unk> per well above the prior year due in part to the pandemic as we ended the second quarter originating $263 million of loans in our branches. Meanwhile, we more than tripled direct mail and digital origination from year over year to $110 million. Our total originations were a record 300.
$73 million more than doubling the prior year period on 7% higher than the second quarter of 2019.
Notably, our new growth initiatives drove $87 million on second quarter origination.
Page 5 despite our portfolio growth and mixed trends through June 30, we closed the quarter with net finance receivables of $1.2 billion up $78 million from the prior quarter and $161 million from the prior year period as we continue to successfully execute on our new growth initiatives and marketing efforts.
Our core loan portfolio growth $80 million or 7% from the prior quarter and $172 million or 17% from the prior year as we continue to expand our market share large loans grew 10% first quarter of 2021 small loans increased 3% quarter over quarter.
For the third quarter, we expect demand to remain solid with some potential headwinds from the child tax credit payments overall, we expect to see how big quarter over quarter growth in our finance receivable portfolio in the third quarter.
On page 6 we show on digitally sourced originations, which were 28, 5% of on new borrower volume in second quarter. Another high watermark for us and a further test net to our ability to meet the needs of our customers and serve them through our omni channel strategy.
During the second quarter large loans for 65% of our digitally sourced originations turning to page 7 and total revenue grew 11% to $99.7 million interest and fee yield increased to 110 basis points year over year, primarily due to improved credit performance across the portfolio as a result of government stimulus tightened underwriting during the pandemic.
And our overall mix shift towards higher credit quality customers, resulting in fewer loans on non accrual status and fewer interest accrual reversals.
Sequentially interest and fee yield on total revenue yield increased 50, and 70 basis points, respectively. Due to credit performance and seasonality as of June 30, 67% of our portfolio, where large loans and 82% of our portfolio had an APR at.
Or below 36% in the third quarter, we expect total revenue yield to be approximately 60 basis points lower than the second quarter, and our interest and fee yield to be approximately 30 basis points lower due to a continued mix shift towards larger loans.
Moving to pay day, our net credit loss rate was 7.4% for the quarter of 320 basis point improvement year over year, while delinquency remained at historically low levels net credit losses were also down 30 basis points from the first quarter due to the impact of government stimulus improving economic conditions and our lower delinquency levels. We.
Fact that our full year net credit loss rate will be approximately 7%.
Flipping to page 9 the credit quality of our portfolio remains historically strong thanks to the quality and adaptability of our underwriting criteria, including appropriate tightening during the pandemic the performance of our custom scorecards and the impact of governance Skinny line, our 30 plus day delinquency level as of June 30, It was 3.6 per se.
GAAP 120 basis point improvement from the prior year, and notably 70 basis points lower than March 31.
Moving forward, we expect 30, plus day delinquencies to rise gradually offer but june low towards more normalized levels over the next 12 months.
Turning to page 10, we ended the first quarter with an allowance for credit losses of $139.6 million or 12, 6% at net finance receivables during the second quarter of 2021, the allowance decreased by $200000 to 11, 8% and net finance receivables. This decrease included the base reserve.
Sales of $6.1 million to support our strong portfolio growth and a COVID-19 reserve release of $6.3 million due to improving economic conditions. As a reminder, as our portfolio growth. We will continue to build additional reserves to support <unk> growth with the improving economy, we produced the severity and the duration of our macro from.
Actions, including an assumption that the unemployment rate will be under 8% at the end of 2021.
We will continue to review these assumptions every quarter to reflect changing macro conditions as the economy continues to rebound our $139.4 million dollar allowance for credit losses as of June 30 continues to compare very favorably to our 30 plus day contractual delinquency at $42.8 million.
We are confident that we remain appropriately reserved.
Flipping to page 11, G&A expenses for the second quarter of 2021 and were $46.4 million up $4.9 million or 11, 7% from the prior year period, driven in part by normalized marketing from pandemic impacted second quarter 2020 level as well as increased investment in our new growth initiatives in omni channel.
<unk>.
On a sequential basis, our G&A expense growth <unk> 5 million driven by our marketing activities.
Overall, we expect G&A expenses for the third quarter to be approximately $52 million as we continue to invest in our digital capabilities, our geographic expansion into new states and new products and channels to drive additional sustainable growth and improved operating leverage over the longer term.
Turning to page 12 interest expense was $7.8 million in the second quarter of 2021, and 2.8 percentage of our average net finance receivables.
This was a 60 basis point improvement year over year, and $1.3 million lower than in the prior year period. The improved cost of funds was driven by the lower interest rate environment and improved funding costs from our recent securitization transaction.
We currently have $450 million of interest rate caps to protect us against rising rates on our variable price debt, which as of the end of the second quarter totaled $293.8 million. We have purchased a total of $350 million of interest rate caps over the past year at a 1 month LIBOR strike price range of 25 to 50 basis.
Points, including a $50 million interest rate cap in the second quarter at a strike price of 25 basis points.
In the last 6 months these caps have appreciated in value by $775000 as rates fluctuate the value of these interest rate cap will be mark to market value accordingly.
<unk> ahead, we expect interest rate expense in the third quarter to be approximately $10 million.
Page 13 is a reminder of our strong funding profile, our second quarter funded debt to equity ratio remained at a conservative 3.1 tier 1 we continue to maintain a very strong balance sheet with low leverage and a $139 million in loan loss reserves as of June 30th we had $647 million of unused capacity on our credit facilities.
And $202 million of available liquidity, consisting of unrestricted cash and immediate availability to draw down our credit facilities.
As a reminder, during the quarter, we enhanced our warehouse facility capacity to $300 million closing on 3 new warehouse facilities with our current lender at Wells Fargo, and credit Suisse, and adding JP Morgan to our roster of lenders in July. We also closed on 6 securitization our first 5 year transaction of approximately $200 million.
At a weighted average coupon of 230%.
New securitization will be used to further reduce our cost of capital and fund our growth business.
Our effective tax rate during the second quarter was 19% compared to 36% in the prior year period better than expected from tax benefits on share based compensation for the second half of 2021, we expect an effective tax rate of approximately 25%.
The company's board of directors has declared a dividend of <unk> 25 per common share for the third quarter of 2021, the dividend will be paid on September 15th 2021 to shareholders of record as of the close of business on August 25.2021 in.
In addition, during the second quarter, we repurchased 344429 shares of our common stock at a weighted average price of $46.45 per share under our $30 million stock repurchase program announced in May 2021.
We also repurchased an additional 68437 shares at a weighted average price of $50 on 49 per share in July bringing total repurchases under the program to 412866 shares at a weighted average price of $47 and <unk> 12 per share through July.
As Rob mentioned earlier, we are pleased to announce that our board has approved a $20 million increase in the amount authorized under our current buyback program from $30 million to $50 million.
We continue to be extremely pleased with our outstanding performance, our robust balance sheet and our prospects for growth that concludes my remarks, and I'll now turn the call back over to Rob.
Thanks Harp in summary, we are performing extremely well thus far in 2021, our omnichannel operating model new growth initiatives and superior credit profile led to another excellent quarter and a record breaking first 6 months of the year and we don't plan to let up we will continue to execute on our key strategic initiatives positioning us.
To sustainably grow our business for years to come we have many exciting things on the horizon for regional as we remain well positioned to expand our market share and create additional value for our shareholders. Thank you again for your time and interest I will now open up the call for questions. Operator could you. Please open the line.
Thank you.
We will now begin the question and answer session.
The question queue. You May Press Star then 1 on your telephone keypad, you will hear with total acknowledging your request if youre on.
Using a speakerphone please pick up your handset before pressing any keys to withdraw your question. Please press Star then 2.
We will pause for a moment as Collins joined the queue.
The first question comes from David Scharf from JMP Securities. Please go ahead.
Hi, good afternoon, thanks for taking my questions Robin.
Hey.
First off.
Just curious.
On the kind of asset mix.
It's been years since we've heard about retail loans.
And a lot of ways.
Our mind sort of window went the way of day auto loans in terms of.
The company seemingly exiting that business and it was a little surprising to hear about the actually franchise.
Arrangement is this.
Indicative of a much broader reengagement to rebuild out going forward.
I mean, given that you sort of called it out I wanted to get a sense for.
Whether this is another source of potential asset growth because.
If you can also speak to just sort of the competitive landscape.
In retail point of sale lending.
Because it's always been dominated by a lot of very large players. Thanks.
No that's great David and good afternoon, and thanks for joining the call.
Retail is kind of just.
Bumped along the last couple of years.
On Might've said earlier.
1 of the industrial meetings that were going to do another strategic review of that business.
It's a good business in the sense that.
It's got good margins not a lot of cost to operate because obviously, we're working through.
The stores and their staff.
And we did a reevaluation of that business, we felt that there were some areas, where we could improve our offering.
We were able to work with 1 of our franchisees.
Existing partners and rapidly expand from 19 to 77.
73 stores and really create a growth opportunity here that we think allows us to play more proactively in that space for larger ticket items call it $2500 on average.
On installment lending and the attractiveness about this space for us is not just getting that.
Large retail ticket and finance it but roughly a third of the customers. We acquired through this channel we end up renewing into <unk>.
Just on a normal installment loans and so the lifecycle profitability of that customer base is very good and again.
We are relying on our branches were relying on the staff within those those stores. So.
We've kind of re energize that area, we think it's an area, where we can see some nice nice growth.
In terms of the competitors what I'll tell you is.
Synchrony would be the 1 that most people think of but they don't really lend below 640 FICO.
We're able to kind of land in that sweet spot is the second look.
Behind synchrony in the case of Ashley home stores, and we're able to lend in that call. It 600.
Even higher than 640, FICO space and what's attractive.
To the retailer is they don't have to do what they call a split ticket where a customer wants to buy a 4000 dollar piece of furniture and synchrony Jason.
Or 2 and then.
Ourselves with someone else takes the other 1000 or 2 now we're able to offer the full financing on on the amount and so there's just a lot of things we've done to make the product more attractive and so we're going to see how this goes with.
With this partner in the expansion.
And 5.5 states total so 4 new states.
And we'll share more with you on future quarters, but it's just another lever that.
We're excited to poll.
Great. Thank you.
The next question comes from John Rowan from Janney. Please go ahead.
Hey, good afternoon, guys can you guys repeat the net charge off guidance that you gave.
Yes, sure. So the net charge off guidance for the year normally for this year, we were at an 8% now we've dropped it to 7%.
Primarily due to the fact that we just had lower delinquencies.
In the second quarter record low at 3.6% and it really is just.
Further extended the normalization of the NCL curve to that end. We are also giving guidance for 2022 that we will be in the 8% to 8.5% range per.
For full year 2000, Okay alright.
Alright, and why was the tax rate so low on a quarter.
So the tax rate was lower in the quarter due to a tax benefit from share based compensation.
Okay alright, thank you.
No problem. Thanks, John.
Once again, if you have a question. Please press Star then 1.
The next question comes from Bill Zone from Titan Capital. Please go ahead.
Thank you a couple of questions.
Are you anticipating that small loan receivables will now kind of on a go forward basis be stable ish.
No. It doesn't it doesn't have to be exactly flat, but roughly stay in this range or do you have a different expectation.
Well Bill.
Good speaking to you and thanks for joining yes, you'll probably notice that we eked out some some growth in small loans. This quarter I think it was up $10 million.
Sequentially and it.
It was a little bit up versus the prior year.
First time on a long time is part of kind of the rebound in demand across the portfolio.
The small loans were disproportionately impacted by government stimulus as you might imagine lower balance so somebody gets a big check we were able to pay it off so what I anticipate is going to happen and it may not be in a straight line, but I think the small loan book will will continue to grow.
But I think as a percentage of the portfolio I think the mix shift is still going to move towards large loans, particularly as we add on the auto secured product, which will fuel even more large loan growth.
Thank you and let me actually follow up on that I asked the question and the spirit that we have thought of the small loan category has really been the theater to the large loans.
And when you initially started that some customers completely moved out of small loans.
And customers were moving out of small loans and and into large faster than you were bringing on the small the new small customers that was our perception.
Yes.
If we look now as you point out where you actually had growth for the first time.
Are you thinking that the number of new small loan customers.
And the number of.
Small loan customers that are converting proving themselves and converting to large loan customers, but that's going to be more even now going forward or.
Or should we just stick with your prior answer.
No look I.
I think what youre going to see is look our live check program and direct mail.
Brings and predominantly small loans, but right. That's the source of our origination of small loans.
And as the market picks up we think that the small loan growth will pick up and that will continue to be the fuel. If you will for the graduation strategy our conversion to larger loans, but on top of that we also now have the auto secured product, which allows us to go.
Even further up market with our large loan portfolio, where our customers now by providing their car, we're able to give them a much bigger loans than we would have in the past rather than losing those customers to a competitor. So I think it's just all part of the same strategy.
I think just the pace of the small low growth.
We will pick up as the economy picks up.
And then on that side of this.
Honestly ability as long as we expand geographically into new states and we've talked about Illinois, and the release I mean, when we go into a new state, we're primarily doing it through direct mail and so we bring on these customers small loans direct mail and then we graduate them up and so as we enter more states thats going on fewer more.
Small loan growth.
And then of course, we've got some new initiatives out there, including the guaranteed loan offer.
Initiative, which effectively is the same as a check except you're no longer sending a line check youre, giving somebody a guarantee loan offer.
Flow to the Internet they put in the offer code and the funds get deposited directly into their bank account. So there is a lot of things we're doing to grow that small loan book because it is an important feeder channel.
I think we just had an inflection point, where the pandemic impact.
More often now we're seeing the rebound in demand.
Great that's that's.
Quite helpful. Thank you and then 1 additional question pleases us relative to Illinois.
Why did that first branch reached the $1 million on a 5.
<unk>.
Not just in record time, but completely blew the record.
Hey, what's what's different either about.
That branch or about Illinois.
So in the past when we would go.
Open up new branches in existing markets.
You were often times.
Now doing your mailing in your marketing around a very rich.
Reduced geographic footprint might be 3 or 4 or 5 miles away from the branch.
Part of the strategy of entering new states is to select where you want to plant your flags through our extended mail.
Direct mail program, we now mail in a much wider radius around that branch and so the thought processes as we can cover a state like Illinois, with a handful or more of branches and maybe it ends up being a couple of handfuls, but not the 70 or 80 that some competitors have and so what ends up happening that first branch.
We had a large geographic area, we were able to mail effectively in that footprint, we might have got a little bit pickup because some competitors were leaving the state because of the rate cap issue.
And we were able to grow that branch very effectively in a short period of time and I would tell you. The 2 branches behind it which are located in different parts of the states.
They are on a 5 million each after 4.5 weeks. So I think they are on the same pace as the first branch.
So what ended up happening is as we grow into new states will have a lighter branch footprint those branches will be larger than what we normally have on average which is call around $3 million vs are going to be larger branches staff on a more people and in <unk>.
Much more efficient because of that.
Great. Thank you appreciate you taking the questions.
No I appreciate it bill.
The next question comes from Kyle Joseph from Jefferies. Please go ahead.
Hey, good afternoon. Thanks for taking my questions. So just curious on the cadence of the loan growth throughout the quarter on any real difference as you saw between June and April kind of the further away we got from stimulus.
Yes, great Great question, Kyle and thanks for joining so we actually saw the portfolio run off a bit in April and just build up and Youll see it in the supplement and buildup in originations and we actually had a record.
Month in June on originations of $146 million and what's even most striking about that is even though originations were up 7% in the quarter versus 2019, and they were double 2020 in the month of June.
The originations versus 2019 pre pandemic were up 30%. So we saw a acceleration throughout the quarter.
On a really nice, peaking in June and so really really performed well the other thing I will tell you is.
We're taking share so our core loans were up $80 million or 7% sequentially. They were up $172 million or 17, 3% versus prior year and thats, while the market was down about 3% in the near Prime space.
So we picked up share we clearly as you indicated saw really strong momentum after the.
Stimulus impacted and tax impacted.
Month of April.
Got it really helpful. There and then follow ups for me I think you guys gave.
Guidance on G&A for the third quarter and interest expense I just want to make sure I got that right I think I had about 52 for G&A for the third quarter and then I missed you.
The outlook for interest expense.
So are we expect interest expense in the third quarter to be approximately $10 million.
Okay and is that just.
Okay.
Is that just because the loan growth so back weighted in the second quarter there.
Ramps pretty quickly into the third.
It is definitely because of our volume increases.
Yes got it thanks very much for answering my questions.
Yes Kyle.
I'll just add 1 more thing is.
People are probably curious how July looks.
I would tell you is we really haven't seen any impact from the child tax credit maybe a little bit of payments for a couple of days when they came in which is probably a good thing from a credit standpoint, but we haven't seen any impact in demand.
Note in July and July is.
A very strong month so.
All good on the demand from.
Okay that that should have been my next question I. Appreciate your answer thanks, guys have a good 1.
Hi, Jonathan.
This concludes the question and answer session I would like to turn the conference back over to Mr. Rob Berg for any closing remarks.
No. Thanks. Thanks, Operator, let me just conclude by saying this was a great quarter and I could probably use the record on.
Award record numerous times, but.
We did have record originations, we had record digital originations.
On all time high on our receivables.
$1 billion, $1, 24, which was up nearly 16%.
Versus the prior year, we had record quarterly revenue of $99 million, which was up nearly 11% from prior year and as I said.
On the market was down year on year on volume by 3% and we were up $172 million or 17%.
We remain focused on our omni channel growth initiatives, that's digital innovation geographic expansion, new products and channels and you heard a little bit about what we want to do in retail and what I will tell you. This is every day of the regional team focus on elevating the client experience.
We also focus on elevating the team's ability to better serve our customers.
And we are focused on innovating as we build out our capabilities and.
Things are going well, we're excited about the prospects as we go forward and I just want to thank everybody again for joining the call.
Take care.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
Yes.
[music].
Yes.
Okay.
Yes.
Yes.
Yes.
[music].
Yeah.
Okay.
[music].
Yes.