Q4 2021 Regional Management Corp Earnings Call

Thank you for standing by this is the conference operator welcome to the regional Management Corp, fourth quarter 2021 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 to join the question queue. You May Press Star then one.

Speaker 1: Thank you for standing by. This is the conference operator. Welcome to the Regional Management Corp. fourth quarter 2021 earnings call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there'll be a...

Speaker 1: To join the question queue, you may press star, then 1 on your telephone.

On your telephone keypad should you need assistance during the conference call you May signal, an operator by pressing star Zero I would now like to turn the conference over to Garrett Edson ICR. Please go ahead.

Speaker 1: 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 Garrett Edson, ICR. Please go ahead.

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 regional match Com before we begin our formal remarks I will direct you to page two of our supplemental presentation.

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

Important disclosures concerning forward looking statements can they use non-GAAP financial measures part of our discussion today may include forward looking statements, which are based on management's current expectations estimates and projections about the companys future financial performance and business prospects before looking statements speak only as of today and are subject to various assumptions risks uncertainties and factors that are difficult.

Speaker 2: 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. The 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 factual results to differ materially from those expressed or implied in the forward-looking statements. The statements are not guaranteed as a future performance and therefore you should not place undue reliance upon them.

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.

All of you to our press release presentation and recent filings with the SEC for a more detailed discussion of 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 measures reconciliation of these measures to the most comparable GAAP measure can be five.

Speaker 2: We refer all of you to our press release, presentation, and recent filings with the SEC for a more detailed discussion of our forward-looking statements and the risks and uncertainties that could impact the future operating results and financial condition of regional men.

Speaker 2: Also, our discussion today may include references to certain non-GAAP measures. Reconciliation of these measures to the most comparable GAAP measure can be found within our earnings announcement or earnings presentation and posted on our website at RegionalManagement.com. I would now like to introduce Rob Beck, President and CEO of Regional Management.

Within our earnings announcement or earnings presentation posted on our website at regional management Dot Com I would now.

Now like to introduce Rob Beck, President and CEO of regional Management Corp.

Thanks, Garrett and welcome to our fourth quarter 2021 earnings call I'm joined today by Harp brought up our Chief Financial Officer.

Speaker 3: Thanks, Garrett, and welcome to our fourth quarter 2021 earnings call. I'm joined today by Harp Rana, our chief financial officer.

We continued to deliver consistent predictable and superior results in the fourth quarter, we generated $20 8 million of net income or $2.04 of diluted EPS.

Speaker 3: We continue to deliver consistent, predictable, and superior results in the fourth quarter. We generated $20.8 million of net income, or $2.04 of diluted EPS, along with attractive returns of 6% ROA and 29.5% ROA due to quality growth in our loan portfolio, a strong credit profile, disciplined expense management, and low funding costs.

Along with attractive returns of 6% ROA and 29, 5% Roe.

Due to quality growth in our loan portfolio.

Wrong credit profile disciplined expense management and lower funding cost.

For the third straight quarter, we logged double digit year over year growth in our net finance receivables and quarterly revenue, which were up 26% and 23% respectively.

Speaker 3: For the third straight quarter, we logged double digit year-over-year growth in our net finance receivables and quarterly revenue, which were up 26% and 23% respectively.

Annual growth rates far exceeded our 2019 pre pandemic portfolio and revenue growth rates of 19% and 16% respectively. We originated a record $434 million of loans in the fourth quarter up 19% over both the prior year and 2019 levels over the past two years we've taken.

Speaker 3: These annual growth rates far exceeded our 2019 pre-pandemic portfolio and revenue growth rates of 19% and 16%, respectively.

Speaker 3: We originated a record $434 million of loans in the fourth quarter, up 19% over both the prior year and 2019.

Speaker 3: Over the past two years, we've taken market share, as evidenced by our growth compared to the broader industry, and at the same time, maintained our robust credit under our market dynamic and is Einstein's take on the rise to market above what he saw last year. But at Ve facade Center, we've taken a new route from Amazon on muscles TEST second place in the marketDRAP R forums Definitelyookie

Market share as evidenced by our growth compared to the broader industry and at the same time maintained a robust credit underwriting in the fourth quarter. Our portfolio also grew sequentially by $112 million exceeding our guidance and driving our ending net receivables to an all time high of more than $1 4 billion, which.

Speaker 3: In the fourth quarter, our portfolio also grew sequentially by 112 million.

Speaker 3: exceeding our guidance and driving our ending net receivables to an all-time high of more than $1.4 billion, which in turn produced record quarters.

In turn produced record quarter.

19 million.

While delinquencies continued to normalize in line with expectations, our credit profile at the end of the year remained stronger than pre pandemic levels. Our 30 plus day delinquency rate ended just below 6%.

Speaker 3: While delinquencies continue to normalize in line with expectations, our credit profile at the end of the year remains stronger than pre-pandemic levels. Our 30-plus day delinquency rate ended just below 6%, which was 70 basis points above the prior year end, but still 100 basis points below 31st December 2019.

Which was 70 basis points above the prior year, but still 100 basis points below December 31 2019.

Our net credit loss rate during the quarter six 4% a 50.

Speaker 3: Our net credit loss rate during the quarter was 6.4%, a 50 basis point improvement from the prior year period and 260 basis points better than the fourth quarter of 2019. Our net credit loss rate for the full year 2021 was 6.6%, or 230 basis points lower than 2020 and 290 basis points lower than 2019.

50 basis point improvement from the prior year period, and 260 basis points better than the fourth quarter of 2019, our net credit loss rate for the full year 2021 was six 6% or 230 basis points lower than 2020, and 290 basis points lower than 2019.

Our operations have proven durable and resilient throughout the pandemic, including during the most recent army crime variant surge and we continue to be encouraged by the strength of the economy positive macroeconomic outlook and the low unemployment rate.

Speaker 3: Our operations have proven durable and resilient throughout the pandemic, including during the most recent Omicron variant surge, and we continue to be encouraged by the strength of the economy, positive macroeconomic outlook, and the low unemployment.

As I reflect on 2020 , one I'm proud of our team's relentless execution on our strategic growth initiatives and our company's delivery of strong results that benefit all stakeholders. Most importantly, our customers team members communities and shareholders. We once again demonstrated our ability to produce exceptional outcomes.

Speaker 3: As I reflect on 2021, I'm proud of our team's relentless execution on our strategic growth initiatives and our company's delivery of strong results that benefit all stakeholders, most importantly our customers, team members, communities, and shareholders. We once again demonstrated our ability to produce exceptional outcomes despite a challenging macroeconomic environment.

Despite a challenging macroeconomic environment.

For our customers, we continue to execute our vision of delivering a best in class experience and a basket of useful assessable easily understood financial solutions that serve their evolving needs and support their long term financial wellbeing.

Speaker 3: For our customers, we continue to execute our vision of delivering a best-in-class experience and a basket of useful, accessible, easily understood financial solutions that serve their evolving needs and support their long-term financial well-being.

We enhanced the digital Prequalification experience once the guaranteed loan off a program with online fulfillment expanded our auto secured and retail loan products and introduced our valuable credit solutions to millions of new customers and two new states.

Speaker 3: We enhanced the digital prequalification experience, launched a guaranteed loan offer program with online fulfillment, expanded our auto-secured and retail loan products, and introduced our valuable credit solutions to millions of new customers in two new states.

We also made the investments necessary to deliver end to end digital lending and improve customer portal and mobile app to our customers in 2022 at.

Speaker 3: We also made the investments necessary to deliver end-to-end digital lending, an improved customer portal, and a mobile app to our customers in 2022. At the same time, we improved the financial well-being of our customers, including through our graduation program.

At the same time, we improved the financial well being of our customers, including through our graduation programs in 2020 . One we refinanced approximately 41000 of our customers small loans into large loans, representing $237 million in finance receivables at origination and reducing these customers average a P.

Speaker 3: In 2021, we refinanced approximately 41,000 of our customers' small loans into large.

Speaker 3: representing $237 million in finance receivables at origination, and reducing these customers' average APR from 42.8% to 30.7%.

From 42, 8% to 37%.

For our team members, we established a $15 per hour minimum wage rolled out additional compensation increases for hourly employees and amounts well ahead of the current inflationary environment.

Speaker 3: For our team members, we established a $15 per hour minimum wage, rolled out additional compensation increases for hourly employees in amounts well ahead of the current inflationary environment, provided an additional week of paid time off and access to bereavement leave, held health and welfare insurance premiums flat, improved our overall benefit offerings, and introduced new training and development programs.

An additional week of paid time off and access to bereavement leave held health and welfare insurance premiums flat.

Proved our overall benefit offerings and introduced new training and development programs.

For our communities, we continued to make a positive impact through regional reach and employee led program dedicated to creating social change and goodwill through community service charitable, giving and diversity equity and inclusion initiatives in the spring. We again partnered with the American Heart Association, leading all upstate south.

Speaker 3: For our communities, we continue to make a positive impact through Regional Reach, an employee-led program dedicated to creating social change and goodwill through community service, charitable giving, and diversity, equity, and inclusion initiatives.

Speaker 3: In the spring, we again partnered with the American Heart Association, leading all upstate South Carolina companies in fundraising for the Heart Walk for the second year in a row, and emerged as a top partner for American Heart nationwide.

Carolina companies in fundraising for the heart walk for the second year in a row and emerge as a top partner for American heart nationwide.

Throughout the year, we also provided support to other organizations such as harvest Hope food Bank and Asian Americans advancing justice.

Speaker 3: Throughout the year, we also provided support to other organizations such as Harvest Hope Food Bank and Asian Americans Advancing Justice.

For our shareholders. We grew our loan portfolio gained market share and maintained a strong credit profile appropriately managed our operating expenses diversified our funding sources decreased our funding costs hedged our interest rate risk and posted a number of annual quarterly records on both our income statement and balance sheet we.

Speaker 3: For our shareholders, we grew our loan portfolio, gained market share, maintained a strong credit profile, appropriately managed our operating expenses, diversified our funding sources, decreased our funding costs, hedged our interest rate risk, and posted a number of annual and quarterly records on both our income statement and balance sheet.

Finish 2021 with a record $88 $7 million of net income $8.33 of diluted EPS seven 2% our away 31, 6% Roe.

Speaker 3: We finished 2021 with a record $88.7 million of net income, $8.33 of diluted EPS, 7.2% ROA, 31.6% ROA.

These results are far and away the best in our company's history with net income exceeding the high end of our most recent guidance by nearly $2 million.

Speaker 3: These results are far and away the best in our company's history, with net income exceeding the high end of our most recent guidance by nearly 2 million dollars.

We also invested heavily throughout the pandemic, enabling us to dramatically improve our capabilities relative to 2019 and positioning us well for 2022 and beyond these.

Speaker 3: We also invested heavily throughout the pandemic, enabling us to dramatically improve our capabilities relative to 2019, and positioning as well for 2022 and beyond. These investments led to strong portfolio and revenue growth, up 26% and 20%, respectively, in 2021 compared to pre-pandemic results in 2019.

These investments led to a strong portfolio and revenue growth up 26% and 20% respectively. In 2021 compared to pre pandemic results from 2019.

In addition to growing our portfolio and investing in our future. We returned capital to our shareholders in the form of dividends totaling $10 million and share repurchases totaling $67 million in 2021 since the outset of the pandemic in 2020, we have returned a total of $92 million of capital comprised of $80 million a share.

Speaker 3: In addition to growing our portfolio and investing in our future, we returned capital to our shareholders in the form of dividends totaling $10 million and share repurchases totaling $67 million in 2021. Since the outset of the pandemic in 2020, we have returned a total of $92 million of capital comprised of $80 million of share repurchases or 17.2% of shares outstanding at the beginning of 2020 and $12 million of dividends. In recognition of the

Repurchases or 17, 2% of shares outstanding at the beginning of 2020 and $12 million of dividends.

In recognition of our exceptional results, our strong capital position and the long term earnings power and resiliency of our business I am pleased to announce that our board of directors has approved a 20% increase in our quarterly dividend to <unk> 30 per share and has authorized a new $20 million stock repurchase program.

Speaker 3: strong capital position and the long-term earnings power and resiliency of our business, I am pleased to announce that our Board of Directors has approved a 20% increase in our quarterly dividend to 30 cents per share and has authorized a new $20 million stock repurchase program.

Pivoting to the new year.

We entered 2022 and a position of considerable strength.

Speaker 3: we entered 2022 in a position of considerable strength. Our loan portfolio at the outset of the year was at an all-time high, providing a solid jump-off point for 2022. And we expect that loan demand will continue to be robust.

Loan portfolio at the outset of the year was at an all time high providing a solid jump off point for 2022, and we expect that loan demand will continue to be robust we remain well situated to execute on our long term strategies, including our ambitious growth plans throughout the year and beyond.

Speaker 3: We remain well situated to execute on our long-term strategies, including our ambitious growth plans throughout the year and beyond.

We will continue to invest heavily in technology, as we innovate and evolve our business our improved digital prequalification experienced produced another period of record digitally sourced originations, we originated $49 million of digitally sourced loans in the fourth quarter up 135% from the prior year period.

Speaker 3: We will continue to invest heavily in technology as we innovate and evolve our business. Our improved digital prequalification experience produced another period of record digitally sourced originations. We originated $49 million of digitally sourced loans in the fourth quarter, up 135% from the prior year period and 226% from the fourth quarter of 2019.

And 226% from the fourth quarter of 2019.

New digital volumes represented 28, 2% of our total knee borrower volume in the quarter.

Speaker 3: New digital volumes represented 28.2% of our total new borrower volume in the quarter.

With 59, 8% originated as large loans.

Speaker 3: with 59.8% originated as large loans.

Digitally sourced originations in 2021 were 149 billion up 239% from 2020 and 199% from 2019.

Speaker 3: Total digitally sourced originations in 2021 were $149 million, up 239% from 2020 and 199% from 2019. With the combination of our digital prequalification engine and our new end-to-end digital lending capabilities, which we'll begin testing this quarter, we expect to be in a position to deliver another year of record digitally sourced originations in 2022.

With the combination of our digital Prequalification engine, and our new end to end digital lending capabilities, which will begin testing this quarter, we expect to be in a position to deliver another year of record digitally sourced originations in 2022.

Earlier this week, we continue to grow our geographic footprint with the expansion of operations to Mississippi, Our 14th stake. We also plan to enter at least five additional new states and open approximately 25 de Novo branches. Later this year as we continue our national expansion.

Speaker 3: Earlier this week, we continued to grow our geographic footprint with the expansion of operations to Mississippi, our 14th state. We also plan to enter at least five additional new states and open approximately 25 Genoa branches later this year as we continue our national expansion.

Our digital investments and support from our centralized sales and service team will allow our branches in new states to maintain a broader geographic reach this will result in higher average receivables per branch and the need for fewer branches, creating greater operating leverage we remain confident in our ability to quickly gain strong.

Speaker 3: Our digital investments and support from our centralized sales and service team will allow our branches in new states to maintain a broader geographic reach. This will result in higher average receivables per branch and the need for fewer branches, creating greater operating leverage. We remain confident in our ability to quickly gain a strong foothold in new geographies as we expand.

So to hold and new geographies as we expand.

Along with our rapid growth, we continue to keep a firm handle on our balance sheet and credit profile.

Speaker 3: Along with our rapid growth, we continue to keep a firm handle on our balance sheet and credit profile. As of the end of 2021, we had more than $550 million of unused borrowing capacity and available liquidity of $210 million to fund our growth.

As of the end of 2021 we had more than $550 million of unused borrowing capacity and available liquidity of $210 million to fund our growth.

We are positioned well for rising interest rates with 78% of our $1 1 billion of outstanding debt carrying a fixed rate interest rate with a weighted average coupon of two 7% and an average with all the duration of three one years in the fourth quarter. We added two forward interest rate caps totaling $100 million.

Speaker 3: We are positioned well for rising interest rates, with 78% of our $1.1 billion in outstanding debt, carrying a fixed rate interest rate with a weighted average coupon of 2.7% and an average revolving duration of 3.1 years.

Speaker 3: In the fourth quarter, we added two forward interest rate caps totaling $100 million at strike rates of 50 basis points, a timely purchase in light of increasing rates at the outset of 2022. The new caps are effective in 2023 and 2024, provide protection into early 2026, and extend our weighted average interest rate cap duration to nearly two years.

Its strike rates of 50 basis points, a timely purchase in light of increasing rates at the outset of 2022.

The new caps are effective in 2023, and 2024 provide protection into early 2026 and extend our weighted average interest rate cap duration for nearly two years.

As of December 31st inclusive of the new caps, we had a total of $450 million of interest rate caps with strike rates at 25 to 50 basis points covering $244 million in existing variable debt and creating protection for future growth.

Speaker 3: As of December 31, inclusive of the new caps, we had a total of $450 million of interest rate caps with strike rates at 25 to 50 basis.

Speaker 3: covering $244 million in existing variable debt and creating protection for future growth.

By mid year 2022, we also plan to begin implementing our next generation scorecard with a full rollout by year end.

Speaker 3: By mid-year 2022, we also plan to begin implementing our next generation scorecard with a full rollout by year-end.

The new proprietary model provides significant advancements and underwriting capabilities by utilizing sophisticated modeling algorithms that leveraged new alternative data sources to drive more predictable outcomes also in support of our end to end digital growth strategy, we will integrate industry, leading API for fraud.

Speaker 3: The new proprietary model will provide significant advancements in underwriting capabilities by utilizing sophisticated modeling algorithms that leverage new alternative data sources to drive more predictable outcomes.

Speaker 3: Also, in support of our end-to-end digital growth strategy, we will integrate industry-leading APIs for fraud, income, cash flow, and employment verification into the underwriting and origination process. These efforts will contribute to stable credit performance in the coming years.

Cash flow in an employment verification into the underwriting and origination process. These efforts will contribute to stable credit performance in the coming years.

We also began 2020 to help your reserves against future credit losses, consistent with our strong portfolio growth in the fourth quarter, we built our allowance for credit losses by $9 2 million, resulting in an allowance for credit losses reserve rate at the end of the year of 11, 2% or.

Speaker 3: We also began 2022 with healthy reserves against future credit law.

Speaker 3: Consistent with our strong portfolio growth in the fourth quarter, we built our allowance for credit losses by $9.2 million, resulting in our allowance for credit losses reserve rate at the end of the year of 11.2%. Our allowance includes a $14.4 million reserve related to the expected economic impact of the COVID-19 pandemic.

Our allowance includes $14 4 million reserve related to the expected economic impact of the COVID-19 pandemic.

We released only $1 1 million of these COVID-19 related reserves in the fourth quarter as we continue to maintain a conservative stance, while monitoring the impact of the army cranberry at the pace of the economic recovery and the financial health of the consumer.

Speaker 3: We released only 1.1 million of these COVID-related reserves in the fourth quarter as we continue to maintain conservative stance while monitoring the impact of the Omicron variant, the pace of the economic recovery, and the financial health of the consumer.

In summary, our strategic investments in digital initiatives geographic expansion and product and channel development, along with our proven multi channel marketing and should continue to drive substantial profitable growth.

Speaker 3: In summary, our strategic investments in digital initiatives, geographic expansion, and product and channel development, along with our proven multi-channel marketing engine, continue to drive substantial profitable growth.

Also derisked our business by investing heavily in our custom underwriting models and shifting 83% of our portfolio to higher quality loans at or below 36% APR, enabling us to maintain a stable credit profile as we grow we also continue to prioritize our operating efficiency and balance sheet strength.

Speaker 3: We've also de-risked our business by investing heavily in our custom underwriting models and shifting 83% of our portfolio to higher quality loans at or below 36% APR, enabling us to maintain a stable credit profile as we grow.

Speaker 3: We also continue to prioritize our operating efficiency and balance sheet strength. Together, these efforts have yielded consistent, predictable, and superior results.

Together these efforts have yielded consistent predictable and superior results and we will drive profitable growth with sustainable long term value creation and capital return in the future.

Speaker 3: and will drive profitable growth with sustainable long-term value creation and capital return in the future.

I'll now turn the call over to harp to provide additional color on our financials.

Speaker 3: I'll now turn the call over to HARP to provide additional color on our financials.

Thank you Robin Hello, everyone I'll take you through our fourth quarter results in more detail on page three of the supplemental presentation, we provide our fourth quarter financial highlight regeneron.

Speaker 4: Thank you Rob and hello everyone. I'll take you through our fourth quarter results in more detail.

Speaker 4: On page 3 of the supplemental presentation, we provide our fourth quarter financial highlights.

We generated net income of $20 8 million and diluted earnings per share of $2 and four up 45% and 59% respectively over the prior year period.

Speaker 4: We generated net income of $20.8 million and diluted earnings per share of $2.04, up 45% and 59% respectively over the prior year period. These results were driven once again by significant portfolio and revenue growth, low funding costs, and a healthy credit profile.

Results were driven once again by significant portfolio revenue growth low funding cost and a healthy credit profile.

Business pretty strong return of 6% and 29, 5% ROE this quarter and seven 2% and 31, 6% ROE for the full year 2021 .

Speaker 4: The business produced strong returns with 6% ROA and 29.5% ROA this quarter and 7.2% ROA and 31.6% ROA for the full year 2021.

We continue to demonstrate our ability to drive revenue or bottom line and generate whereabouts return.

Speaker 4: We continue to demonstrate our ability to drive revenue to our bottom line and generate robust returns.

As illustrated on page four branch originations increased year over year.

Speaker 4: As illustrated on page 4, branch originations increased year over year as we originated 287 million branch loans in the fourth quarter, 7% higher than the prior year period. Meanwhile, direct mail and digital originations were 55% above the prior year period, rising to $148 million of origination.

Originated $287 million in branch loans in the fourth quarter.

70% higher than the prior year period.

Meanwhile, in direct mail and digital origination or 55% above the prior year period rising to 148 million of originations. Our total originations were a record $434 million up 19% from the prior year period.

Speaker 4: Our total origination were a record 434 million, up 19% from the prior year period. Notably, our new growth initiatives drove 128 million of fourth quarter originations and continue to be a significant factor in our accelerating expense.

Notably our new growth initiatives drove a $128 million, our fourth quarter originations and continue to be a significant factor in our accelerating expansion.

Page five displays our portfolio growth and next time for the end of 2021 .

Speaker 4: Page five displays our portfolio growth in mixed trends through the end of 2021. We closed the quarter with net finance receivables of 1.4 billion, up 112 million from the prior quarter and a record increase of 290 million from the end of 2020, thanks to continued success in executing on our omni-channel strategy, new growth initiatives and marketing.

It was a quarter with net finance receivables of $1 4 billion up $112 million from the prior quarter and a record increase of $290 million from the end of 2020. Thanks to continued success in executing on our Omnichannel strategy, new growth initiatives and marketing effort.

Our core loan portfolio grew $112 million or eight 6% sequentially in the quarter and $296 million or 26, 5% from the prior year period, as we continued to capture market share large loans and small loans grew 10% and 6% on a sequential basis.

Speaker 4: Our core loan portfolio grew 112 million, or 8.6% sequentially in the quarter, and 296 million, or 26.5% from the prior year period, as we continued to capture market share. Large loans and small loans grew 10% and 6% on a sequential basis.

As a reminder for the first quarter of 2022, we expect to see some degree of normal seasonal trends in the portfolio as customers had historically paid down their loans in the first quarter with tax refunds and bonuses. However in light of strong demand in the market. This year, we anticipate that our finance receivable portfolio well liquidate only.

Speaker 4: As a reminder, for the first quarter of 2022, we expect to see some degree of normal seasonal runoff in the portfolio, as customers have historically paid down their loans in the first quarter with tax refunds and bonuses.

Speaker 4: However, in light of strong demand in the market this year, we anticipate that our finance receivables portfolio will liquidate only slightly in the quarter. Our first quarter ending net receivables should be approximately $1.4 billion and consistent with prior years, the portfolio will return to growth in the second quarter.

Slightly in the quarter, our first quarter, ending net receivables should be approximately $1 4 billion and consistent with prior years the portfolio will return to growth in the second quarter.

On page six we show our digitally sourced originations, which were 28% of our new borrower volume in the fourth quarter as we continue to meet the needs of our customers through our Omnichannel strategy.

Speaker 4: On page six, we show our digitally sourced originations, which were 28% of our new borrower volume in the fourth quarter, as we continue to meet the needs of our customers through our omni-channel strategy.

During the fourth quarter large loans for nearly 60% of our new digitally sourced originations.

Speaker 4: During the fourth quarter, large loans were nearly 60% of our new digitally sourced array.

Turning to page seven total revenue grew by 23% to a record 119 5 million interest and feel declined 50 basis points year over year as expected primarily due to the continued mix shift towards larger loans and the impact of nonaccrual loans as credit continues to normalize.

Speaker 4: Turning to page 7, total revenue grew by 23% to a record $119.5 million. Interest and fee yield declined 50 basis points year over year, as expected, primarily due to the continued mix shift towards larger loans and the impact of non-accrual loans as credit continues to normal.

Sequentially interest and fee yield was lower by 60 basis points and total revenue yield was lower by 80 basis points, reflecting normal seasonal increases and 90 plus day delinquencies.

Speaker 4: Sequentially, interest in fee yield was lower by 60 basis points and total revenue yield was lower by 80 basis points reflecting normal seasonal increases in 90 plus day delinquency.

In the first quarter, we expect total revenue to be approximately 110 basis points lower than the fourth quarter and our interest in field to be approximate 120 basis points lower due to the continued mix shift to large loans seasonally higher net credit losses and credit normalization.

Speaker 4: In the first quarter, we expect total revenue yield to be approximately 110 basis points lower than the fourth quarter and our interest and fee yield to be approximately 120 basis points lower due to the continued mix shift to large loans, seasonally higher net credit losses and credit normalize.

Moving to page eight on that credit loss rate was six 4% for the fourth quarter.

Speaker 4: Moving to page 8, our net credit loss rate is 6.4% for the fourth quarter. A 50 basis point improvement year over year and 260 basis points better than the fourth quarter of 2019.

The basis point improvement year over year, and 260 basis points better than the fourth quarter of 2019.

We typically experience a seasonal increase in our net credit loss rate in the first quarter of each year and we also expect that the credit profile portfolio will continue to normalize in the first quarter of this year.

Speaker 4: We typically experience a seasonal increase in our net credit loss rate in the first quarter of each year. And we also expect that the credit profile of our portfolio will continue to normalize in the first quarter of this year. Despite the combination of typical first quarter seasonality, and this year's credit normalization, we anticipate that our net credit loss rate will remain 130 basis points better than first quarter of 2020 pre-pandemic level.

The combination of typical first quarter seasonality and this year the credit normalization, we anticipate that our net credit loss rate will remain 130 basis points better than the first quarter 2020 pandemic level for.

For the full year 2022, we expect that our loss rate will be approximately eight 5% or 100 basis point below full year 2019 level.

Speaker 4: For the full year 2022, we expect that our loss rate will be approximately 8.5%, or 100 basis points below full year 2019 level.

The credit quality of our portfolio remains strong thanks to the quality and adaptability of our underwriting criteria and the performance of our custom scorecards.

Speaker 4: The credit quality of our portfolio remains strong. Thanks to the quality and adaptability of our underwriting criteria and the performance of our custody school.

30, plus day delinquencies continue to normalize as expected.

Speaker 4: 30 plus day delinquencies continue to normalize, as expected. Our 30 plus day delinquency level as of December 31st was 6%, an increase of 130 basis points versus September 30th and up 70 basis points versus the prior year-end. However, we remain 100 basis points below year-end 2019 levels.

30, plus day delinquency level as of December 36%, an increase of 130 basis points for September 30th.

70 basis points versus the prior year and however, we remain a 100 basis points below year end 2019 levels.

On a product basis, our mix shift to higher quality large loans is starting to swell.

Speaker 4: On a product basis, our mix shift to higher quality large loans has served us well. As of December 31, 68% of our portfolio was comprised of large loans and 83% of our portfolio had an APR at or below 36%. As expected, our 30-plus day delinquency on our small loan portfolio is normalizing more quickly than on our large loan portfolio, with our small loan delinquency rate up 200 basis points year over year compared to only 20 basis points on the large loan portfolio.

As of December 31, 68% of our portfolio was comprised of large funds and 83% of our portfolio had an APR at or below 36%.

As expected our 30 plus day delinquency on our small loan portfolio is normalizing more quickly than on our large loan portfolio with our small loan delinquency rate up 200 basis points year over year compared to only 20 basis points on the large loan portfolio.

However, our small loan portfolio has higher yields and wider net credit margin to accommodate soccer normalization of credit as we manage our overall portfolio to achieve attractive risk adjusted return.

Speaker 4: However, our small loan portfolio has higher yields and wider net credit margins to accommodate the faster normalization of credit as we manage our overall portfolio to achieve attractive risk adjusted.

Both our large and small loans 30, plus day delinquency rates remain below 2019 levels.

Speaker 4: Both are large and small loans, 30 plus day delinquency rates remain below 2019 levels.

Moving forward, we expect delinquencies to continue to rise towards more normalized levels.

Speaker 4: Moving forward, we expect delinquencies to continue to rise towards more normalized levels.

Turning to page nine we ended the third quarter with an allowance for credit losses of 151 million or 11, 4% of net finance receivable.

Speaker 4: Turning to page 9, we ended the third quarter with an allowance for credit losses of $150.1 or 11.4% of net finance receivables.

During the fourth quarter, the allowance increased by $9 2 million sequentially to $159 3 million to support our strong portfolio growth, but the allowance as a percentage of net finance receivables decreased to 11, 2% the.

Speaker 4: During the fourth quarter, the allowance increased by $9.2 million sequentially to $159.3 million to support our strong portfolio growth, but the allowance as a percentage of Net Finance receivables decreased to $11.2 million.

The allowance increased in the quarter consisted of a base reserve build a $10 3 million to support our portfolio growth and a COVID-19 related reserve release of 1.1 million due to improving economic conditions. We continue to maintain a reserve of $14 4 million related to the expected economic impact of the ongoing COVID-19 pandemic.

Speaker 4: The allowance increase in the quarter consisted of a base reserve build of $10.3 million to support our portfolio growth and a COVID-related reserve release of $1.1 million due to improving economic conditions.

Speaker 4: We continue to maintain a reserve of $14.4 million related to the expected economic impact of the ongoing COVID-19 pandemic.

As a reminder, as our portfolio grows we will build additional reserves to support new growth, but we continue to expect that the reserve rate will normalize over the course of 2022.

Speaker 4: As a reminder, as our portfolio grows, we will build additional reserves to support new growth, but we continue to expect that the reserve rate will normalize over the course of 2020.

We estimate that our reserve rate will remain at approximately 11, 2% at the end of the first quarter and gradually decline to pre pandemic levels of approximately 10, 8% by the middle to the end of the year, depending upon the continued impact of COVID-19, and how quickly cases supplied.

Speaker 4: We estimate that our reserve rate will remain at approximately 11.2% at the end of the first quarter, and gradually decline to pre-pandemic levels of approximately 10.8% by the middle to the end of the year, depending upon the continued impact of COVID-19 and how quickly cases subside.

Our $159 3 million allowance for credit losses as of December 31st continues to compare very favorably to our 30 plus day contractual delinquency of $84 9 million, we're confident that we remain appropriately reserved.

Speaker 4: Our 159.3 million allowance for credit losses is as of December 31st to continue to compare very favorably to our 30 plus day contractual delay and conceive of 84.9 million. We are confident that we remain appropriately reserved.

Flipping to page 10, G&A expenses for the fourth quarter with $55 5 million up $11 million or 24% from the prior year period, a bit higher than we previously guided the increase was driven by increased investment in our new growth initiatives personnel and Omnichannel strategy.

Speaker 4: Flipping to page 10, G&A expenses for the fourth quarter were $55.5 million, up $11 million, or 24%, from the prior year period, a bit higher than we previously guided. The increase was driven by increased investment in our new growth initiatives, personnel, and omnichannel strategy.

G&A expenses for the fourth quarter also included <unk> 9 million of expenses related to the consolidation of 31 branches as a part of the company's branch optimization plan.

Speaker 4: The G&A expenses for the fourth quarter also included $0.9 million of expenses related to the consolidation of 31 branches as a part of the company's branch optimization plan.

Looking ahead 2022 will be a year of heavy investment overall, we expect G&A expenses for the first quarter to be approximately $55 million or 0.5 million lower than the fourth quarter as we continue to invest in our digital capabilities geographic expansion and personnel to drive additional sustainable growth and improved operating loss.

Speaker 4: Overall, we expect G&A expenses for the first quarter to be approximately $55 million or $0.5 million lower than the fourth quarter, as we continue to invest in our digital capabilities, geographic expansion, and personnel to drive additional sustainable growth and improved operating leverage over the long term.

Over the longer term.

These investments include centralized sales and service staff to support our digital initiatives as well as additional centralized collectors to mitigate the impact from credit normalization.

Speaker 4: These investments include centralized sales and service staff to support our digital initiatives, as well as additional centralized collectors to mitigate the impact of credit normalization.

Turning to page 11 interest expense was $7 6 million in the fourth quarter.

Speaker 4: Turning to page 11, interest expense of $7.6 million in the fourth quarter, or 2.3% of our average net finance receivables on an annualized basis.

Two 3% of average finance receivables on an annualized basis. This was a $1 7 million or 100 basis point improvement year over year.

Speaker 4: This was a $1.7 million or 100 basis point improvement year over year. The improved cost of funds was driven by the lower interest rate environment, improved costs from our recent securitization transactions, and a mark-to-market adjustment of $2.2 million on our interest.

The improved cost of funds was driven by the lower interest rate environment improved costs from our recent securitization transaction and a mark to market adjustment of $2 2 million on our interest rate caps.

We currently have $550 million of interest rate caps to protect us against rising rates on our variable rate debt, which as of the end of fourth quarter totaled $244 million for.

Speaker 4: We currently have 550 million of interest rate caps to protect evidence rising rates on our variable rate stats, which as of the end-of-fourth quarter totaled 244 million.

$450 million of the interest rate caps have a one month library strike price between 25, and 50 basis points and a weighted average duration of two years.

Speaker 4: 450 million of the interest rate caps have a one month library strike price between 25 and 50 basis points and a weighted average duration of two years.

As rates fluctuate the value of these interest rate cap will be mark to market value accordingly.

Speaker 4: As rates fluctuate, the value of these interest rate caps will be mark-to-market value accordingly.

Looking ahead, we expect interest expense in the first quarter to be approximately $10 5 million, excluding any mark to market impact on interest rate caps with a sequential increase in expense attributable to the growth in our average net receivable.

Speaker 4: Looking ahead, we expect interest expense in the first quarter to be approximately $10.5 million, excluding any mark-to-market impact on interest rate caps with the sequential increase in expense attributable to the growth in our average net receivable.

Page 12 is a reminder of our strong funding profile.

Speaker 4: Page 12 is a reminder of our strong funding profile. Our fourth quarter funded debt to equity ratio remained at a conservative 3.9 to 1.

Our fourth quarter funded debt to equity ratio remained at a conservative three nine to one.

We continue to maintain a very strong balance sheet with low leverage and a 159 million and loan loss reserve.

Speaker 4: We continue to maintain a very strong balance sheet with low leverage and 159 million in one last result.

As of December 31st we had $557 million of unused capacity on our credit facilities and $210 million of available liquidity.

Speaker 4: As of December 31st, we had $557 million of unused capacity on our credit facilities and $210 million of available liquidity, consisting of unrestricted cash and immediate availability to draw down our credit facilities.

Unrestricted cash and immediate availability to draw down our credit facilities.

Our fixed rate debt as a percentage of total debt was 78% with a weighted average coupon of two 7% and an average revolving duration of three one years.

Speaker 4: Our fixed rate gap as a percentage of total data was 78% with a weighted average coupon of 2.7% and an average revolving duration of 3.1.

Our effective tax rate during the fourth quarter was 18% compared to 23% in the prior year period, primarily due to tax benefits from share based awards.

Speaker 4: Our effective tax rate during the fourth quarter was 18%, compared to 23% in the prior year period, primarily due to tax benefits from share-based awards.

For the first quarter, we expect an effective tax rate of approximately 25%, excluding discrete items, such as tax impacts associated with equity compensation.

Speaker 4: For the first quarter, we expect an effective tax rate of approximately 25%, excluding discrete items such as tax impacts associated with equity compensation.

During the fourth quarter, we repurchased nearly 200000 shares of our common stock at a weighted average price of $57 38 per share under our $50 million stock repurchase program.

Speaker 4: During the fourth quarter, we repurchased nearly 200,000 shares of our common stock at a weighted average price of $57.38 per share under our $50 million stock repurchased program. We completed the stock repurchased program in January of 2022, having repurchased in total 945,089 shares at a weighted average price of $52.91 per share.

We completed the stock repurchase program in January of 2022, having repurchased in total 945089 shares at a weighted average price of $52.91 per share.

As Rob noted earlier, our board of Directors has declared a dividend of 30 cents per common share for the first quarter of 2022, a 20% increase over the prior quarter's dividend the dividend will be paid on March 16, 2022 to shareholders of record as of the close of business on February 23 2022.

Speaker 4: As Rob noted earlier, our board of directors has declared a dividend of 30 cents per common share for the first quarter of 2022, a 20% increase over the prior quarter's dividend.

Speaker 4: The dividend will be paid on March 16, 2022 to shareholders of record as of the close of business on February 23, 2020.

In addition, as Rob mentioned earlier, we're also pleased to announce that our board of directors has authorized a new $20 million stock repurchase program.

Speaker 4: In addition, as Rob mentioned earlier, we are also pleased to announce that our Board of Directors has authorized a new $20 million stock repurchase.

We are proud of our outstanding performance throughout the year and we remain extremely pleased with our strong balance sheet, and our near and long term prospects for growth.

Speaker 4: We are proud of our outstanding performance throughout the year, and we remain extremely pleased with our strong balance sheet and our near and long-term prospects for growth. That concludes my remarks. I'll now turn the call back over to us.

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

Yeah.

Thanks Harp is.

I'd like to acknowledge the hard work and exceptional performance of our talented regional team. The successes of our long term strategic initiatives are evident we built a growth company with a focused omni channel strategy and proven consistent execution.

Speaker 3: Thanks, Harp. As always, I'd like to acknowledge the hard work and exceptional performance of our talented regional team. The successes of our long-term strategic initiatives are evident. We built a growth company with a focused omni-channel strategy and proven consistent execution. Our investments throughout the pandemic in technology, the digital experience, and credit underwriting have transformed the company and driven substantial quality growth in customer accounts, our loan portfolio, and the top and bottom line.

Our investments throughout the pandemic and technology, the digital experience and credit underwriting.

Form the company and driven substantial quality growth in customer accounts, our loan portfolio in the top and bottom lines. Looking ahead, we'll continue to invest in our future, including in geographic expansion and the development of digital capabilities on par with any fintech lender. These.

Speaker 3: Looking ahead, we'll continue to invest in our future, including in geographic expansion and the development of digital capabilities on par with any FinTech lens.

These investments in our key strategic initiatives will position us to sustainably grow our business expand our market share and create additional value for our shareholders.

Speaker 3: These investments in our key strategic initiatives will position us to sustainably grow our business.

Speaker 3: expand our market share, and create additional value for our share.

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

Speaker 3: Thank you again for your time and interest. I'll now open up the call for questions. Operator, could you please open the line?

Okay.

Thank you we will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you'll hear a tone acknowledging your request. If you are using a speakerphone. Please pick up your handset before pressing any keys to withdraw. Your question. Please press Star then two we will pause for a moment as color.

Speaker 1: Thank you. We will now begin the question and answer session.

Speaker 1: To join the question queue, you may press star, then one on your telephone.

Speaker 1: You will hear tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then 2.

During the Q.

Our first question comes from John Hecht of Jefferies. Please go ahead.

Speaker 1: Our first question comes from John Hecht of Jefferies.

[noise] afternoon, congratulations and thanks for taking my questions.

Speaker 5: Good afternoon. Congratulations and thanks for taking my questions, Rob and Hannah. First question is, we've been listening to a bunch of earnings calls and the...

Robert.

Quick first question is just we've been listening a bunch of earnings calls and.

The.

Can you guys hear me.

Yeah, we can yeah. Okay. Good I guess it was it was it went blank and I said it just it sort of seems like the what we'd been narrative of what we've been hearing is at the lower end.

Speaker 5: Yeah, we can. Yeah. Okay, good. It was it was it went blank on my side. And you just it sort of seems like the what we've been narrative what we've been hearing is that the lower end.

Prime consumers, there's a bifurcation between that and call it more the near Prime.

Speaker 5: subprime consumers, there's like that bifurcation between that and call it more the near prime subprime consumer, you know, maybe getting squeezed by inflation or something or things that and so you're seeing different borrowing and loss patterns. And I'm just wondering if you guys can, since you have your two different portfolios that would have some of those characteristics, if you can talk if you've seen any bifurcation of the trends over the past few weeks.

Subprime consumer maybe getting squeezed by inflation or something or things of that and so you're seeing different borrowing and loss patterns and I'm. Just wondering if you guys can because you have two different portfolios that would have some of those characteristics. So that you can talk if you've seen any bifurcation of the trends over the past few weeks.

Yeah great.

Speaker 3: Yeah, great question, John . And good evening or good afternoon. Yeah, what we're seeing is exactly that. I mean, in the port, the greater than 36% portfolio, you know, delinquencies, you know, increase 200 basis points. Whereas in the sub 36% portfolio, which, by the way, is 83% of our book.

Great question, John and and good evening or good afternoon, Yeah. What we're seeing is exactly that I mean in the port the greater than 36% portfolio delinquencies increased 200 basis points, whereas in this sub 36% portfolio, which by the way is 83% of our book only increased 20 basis.

At this point and so youre seeing the normalization on the on the weaker side of the portfolio as you would expect but you got to keep in mind that the revenue yields are.

Speaker 3: only increased 20 basis points. And so, you know, you're seeing the normalization on the weaker side of the portfolios you would expect, but you got to keep in mind that the revenue yields are, you know, 10% higher on the small loan book versus the large loan books on average.

10% higher on a small loan book versus the large loan books on average and so there's nothing happening that you know it was unexpected for us.

Speaker 3: And so there's nothing happening that is unexpected for us. We anticipated that credit would normalize faster on that segment of the portfolio. And I think if we look across the industry.

We anticipated a credit with normalized faster on on that segment of the portfolio and I think if we look across the industry.

Given that were better on Npls and delinquencies versus pre pandemic fourth quarter of 19, Ah, we feel pretty good about where we're positioned.

Speaker 3: Given that we're better on NCLs and in delinquencies versus, you know, pre-pandemic fourth quarter of 19, we feel pretty good about where we're positioned, you know, having that kind of mixed book. Okay, that's very helpful.

Having that kind of mixed book.

Okay. That's very helpful and then you.

You've got more and more come through the digital channels. Maybe can you talk about is there a notable difference in customer acquisition cost and door.

Speaker 5: you've got more and more come to the digital channels. Maybe can you talk about is there a notable difference in customer acquisition cost and or

Credit performance based on the different channels of origination.

Speaker 5: Credit performance based on the different channels of origination.

Yes. So the acquisition cost varies you know I would say our most efficient channels still our direct mail channel you. When we go through the digital affiliate partnerships.

Speaker 3: Yeah, so the acquisition cost varies. You know, I would say our most efficient channel is still our direct mail channel. When we go through the digital affiliate partnerships and onboard those customers, we obviously pay those channels, you know, a fee for originating the loans based on success.

And onboard those customers, we obviously pay those channels you know are fee for originating the loans based on success, so they're a little a little bit more expensive, but still very attractive in terms of cost per acquisition from a credit quality standpoint, you know what we've said in the past and it still holds true.

Speaker 3: So they're a little a little bit more expensive, but still very attractive in terms of cost per acquisition. From a credit quality standpoint, what we've said in the past, it's still holds true. The digital channels are slightly worse.

You know the the digital channels are slightly worse, but you have to remember that those digital leads that we get that come through now our prequalification process Theres still today being booked in the branches.

Speaker 3: But you have to remember that those digital leads that we get that come through now are prequalification process. They're still today being booked.

Now we're gonna be a testing the end to end straight through process here at the end of the first quarter, but but overall you know even if credit slightly worse, you know from a pricing standpoint, and everything else, we're still achieving very attractive risk adjusted returns and they're tracking in line with what our models.

Speaker 3: Now we're going to be testing the end-to-end straight-through process here at the end of the first quarter. But overall, you know, even if credit is slightly worse, you know, from a pricing standpoint and everything else, we're still achieving very attractive risk-adjusted returns and they're tracking in line with what our models anticipate.

Anticipate.

Great understood.

Speaker 5: Great understood and then that was actually you got ahead of my next question is that you're you have very strong ENR growth, but that includes the digital well, the digital channel loans thus far in that slide number 14.

Then that was actually you've got ahead of my next questions that you're you have a very strong year in our growth, but that includes the digital world. The digital channel loans, thus far in that slide number 14.

Yeah, we we originated $48 million or $49 million, if you're if you round, it which was about 28% of our new borrowers.

Speaker 3: Yeah, we, we originated 48 million dollars or 49 million if you if you round it, which was about 28% of our new borrowers. And, you know, from an overall percentage of originations, we originated 434Million in the, in the quarter. And, you know, 49 of that was was through these digital channels. So a little over 10%.

And you know from an overall percentage of our originations we originated 434 million in the in the quarter and 49 of that was through these digital channels, so a little over 10%.

And then final question and I'll move to the Q what was the information you gave about the tax rate for this year.

Speaker 5: And then final question and I'll move to the queue. Hannah, what was the information you gave at the tax rate for this year?

25%, you mean for it for fourth quarter it was 18%.

Speaker 4: You mean for quarter at least 18%.

I guess what was the factors that what brought at 18%, but yeah I was really asking for the 25% guide here.

Speaker 5: I guess, you know, what was the factors that brought an 18% but yeah, I was really asking for the 25% guide here.

Yeah. So we're going to go ahead and gone to 25% for first quarter, that's excluding discrete items and then the 18% was due to a.

Speaker 4: Yeah, so we're going to go ahead and guide the 25% for first quarter that's excluding discrete items. And then the 18% was due to discrete items. It's basically share-based compensation that has an impact. So, that reduced it from what we guided to in third quarter for fourth quarter from the 25% down to the 18%. Okay, great.

Discrete items, it's basically share based compensation that has an impact.

So that reduced it from what we guided to in third quarter or for fourth quarter from the 25% down to the 18%.

Okay, great. Thanks, guys.

Great. Thanks, John .

Our next question comes from David Scharf with JMP Securities. Please go ahead.

Speaker 1: Our next question comes from David Sharfe with JMP Securities. Please go ahead.

Good afternoon, and thanks for taking my questions as well.

Speaker 6: uh... good afternoon and uh... thanks for taking my questions as well but a lot of numbers it tossed around maybe just double higher level questions

A lot of numbers it tossed around.

Yep.

Higher level questions.

First as you you've made the point.

Early on in your prepared remarks that you were taking market share and you know it seemed to be based just on the observation of your loan growth versus.

Speaker 6: early on in your prepared remarks that you were taking market share and you know it seemed to be based just on the observation of your loan growth versus others in the industry but can you

Others in the industry, but can you give us a.

A sense for where you think the share is coming from or if you think it's sort of temporary that maybe there was just some regional bias to where you are given that maybe the economies reopened earlier.

Just curious.

As we think about ultimately how big this loan book and get over the next three years.

Where you perceive market share is coming from.

And going forward, if you would expect.

Portion of new customers.

Re upping would increase as well.

No great question, David and good afternoon. So you know I guess the way I would look at it you know that.

Speaker 3: No, great question, David, and good afternoon. So I guess the way I would look at it, the market grew roughly 5 to 6% versus prior year as of the fourth quarter. Our core loan portfolio was up 26.5%. So if you step back and say, well,

The market grew roughly 5% to 6% versus prior year as in the fourth quarter. Our core loan portfolio was up 26, 5% and so if you step back and say well where does the outperformance come from.

Speaker 3: where do the performance come from? You know, I would guide you to all the growth initiatives that we put in place over the last year and a half.

Would guide you to all the growth initiatives that we put in place over the last year and a half so at the end of 2020, if you recall we.

Speaker 3: So at the end of 2020, if you recall, we put together several initiatives. We expanded and deepened our mail population. We extended the mailing around a broader geography of our branches. We started to offer larger loans to our best quality customers.

Put together several initiatives, we expanded and deepened our male population, we extended the mailing around a broader geography of our branches.

We started to offer larger loans to our best quality customers.

And then in 2021. These growth initiatives included you know the auto secured product remote loan closing, our new digital prequalification process with with additional partners.

Speaker 3: You know, and then in 2021, these growth initiatives included, you know, the AutoSqueert product, remote loan closing, our new digital pre-qualification process with.

Speaker 3: with additional partners. We entered three new states, including Mississippi that we just entered. We expanded retail when we did our guaranteed loan offer. So when you look at that long list of investment, we invested heavily during the pandemic.

We entered three new states, including Mississippi that we just entered you know we expanded retail when we did our guaranteed loan offers so when you look at that long list of investment and we invested heavily.

During the pandemic.

If you translate that into originations so in the fourth quarter originations, which were a record $434 million $128 million or almost 30%, 29% came from these growth initiatives and that has been consistent now every quarter for at least the last four quarters if not five.

Speaker 3: You know, if you translate that into originations, so in the fourth quarter originations, which were a record $434 million, $128 million, or almost 30%, 29%, came from these growth initiatives.

Speaker 3: and that has been consistent now every quarter for at least the last four quarters, if not five quarters. And to me, that's what puts us, fans us out versus the competition.

Five quarters and to me, that's what puts us stands out versus the competition.

We've invested we've invested smartly, we've delivered on those investments in terms of getting attractive returns on that spend and those those investments and the growth initiatives are going to carry us forward as we now expand into additional states as we look to be a nationwide lender as.

Speaker 3: We've invested, we've invested smartly, we've delivered on those investments in terms of getting attractive returns on that spend.

Speaker 3: And those investments and the growth initiatives are going to carry us forward as we now expand into additional states, as we look to be a nationwide lender, as we further advance our digital innovation.

We further advanced our digital innovation and you know we're gonna do end to end lending this year and test that out we're going to improve our customer portal, we're going to roll out our mobile app and so as we continue to do those things and expand.

Speaker 3: You know, we're going to end to end lending this year and test that out. We're going to improve our customer portal. We're going to roll out our mobile app.

Speaker 3: And so as we continue to do those things and expand, our view is we'll continue to take market share because of that investment spend and that innovation. No, clearly, I mean, it's been tremendous success. Hey, along those lines, I know that her got into about 55 million of GNA.

You know our view is where we will continue to take market share.

Because of that investment spend in that innovation.

So clearly I mean, they've been a tremendous success.

Along those lines I know that.

Uh Huh harp guided to about $55 million of G&A in the first quarter, but there was also the qualitative.

Comment that 2022 would continue to be a year of heavy investment in.

That kind of leaves us open to interpretation when forecasting.

I mean as you know given that that comment was made are there any sort of parameters we can.

For full year, Oh, well you know look we've guided to the 55 million in the first quarter. We've talked about 25 to know those as we enter another five states and you know the the cost of expanding.

Speaker 3: Well, you know, look, we've guided to the $55 million in the first quarter. We've talked about 25 de novos as we enter another five states. And you know, the cost of expanding into new states is somewhat less about branches because we're going in with a thinner footprint. But what you have to do as you build up this lighter footprint model, where we're investing is building out a centralized sales and services unit.

Enter new states is somewhat less about branches, because we're going in with a thinner footprint, but what you have to do as you as you build out this lighter footprint model.

Where we're investing is building out a centralized sales and services unit.

So that you can service those digital customers are those remote customers.

Speaker 3: so that you can service those digital customers or those remote customers with decentralized functions. So you got to put a little bit of spend in advance of rolling out that model. Similarly, and this is part of the reason why we grew expenses in the fourth quarter as well, is with the normalization of credit, we invested early on in adding more collectors.

The centralized function. So you got to put a little bit of spend in in advance of rolling out that model. Similarly, and this is part of the reason why we grew expenses in the fourth quarter as well is with the normalization of crowded we invested early on in adding more collectors.

And we will continue to do so so you can stay on pace with the normalization of credit and so you know I can't give you an exact number in terms of guidance for for expenses, but you know what what we anticipate as we accomplished in the past is to continue to deliver positive operating leverage on that invest.

Speaker 3: and will continue to do so so you can stay on pace with the normalization of credit. And so...

Speaker 3: You know, I can't give you an exact number in terms of guidance for expenses, but, you know, what we anticipate as we've accomplished in the past.

Speaker 3: is to continue to deliver positive operating leverage on that investment spend, you know, through the growth of the portfolio and the associated revenue.

<unk> spend you know through the growth of the portfolio and the associated revenues.

Got it got it.

Maybe last question.

Speaker 6: Got it, got it. And you know, maybe last question, and you know, there was a perfect segue. You know, maybe expanding more broadly on John's question about CAC. You know, quite a number of legacy brands.

There was a perfect segue.

Maybe expanding more broadly on John's question about.

CAC.

You know.

Quite quite a number of legacy branch based lenders.

Ben.

No rationalizing some of their footprint, obviously in investing in.

And more digital first on the origination side and ultimately seeking an end to end.

Capabilities like you are.

Robert I'm wondering did you view the margin structure.

The end game.

Of your business any different from it is now.

I mean, there there are tons of puts and takes but as this industry becomes increasingly.

Digital and mobile based from sourcing to origination to closing to funding.

Unless branch based is this going to be a more or less where same kind of profitable business either on an roe basis or on an efficiency ratio basis.

Well absent predicting the future economy and lots of other things all of those macro overlays what I would tell you is that.

Speaker 3: Well, as in predicting the future economy and lots of other things, all those macro overlays, what I would tell you is that the investment we're making in our digital journey over the medium to long term will improve our operating efficiency.

The investment, we're making in our digital journey over.

Over the medium to long term will improve our operating efficiency that's.

That's part of the reason why we're making those investments you make the investment.

Speaker 3: That's part of the reason why we're making those investments. You know, you make the investment.

To help serve your customers you know more effectively you make the investments to make it easier for your employees to serve the customers, but you also get the efficiencies along the way because it is more of the functions can be digitized rather than people based and so we we closed 34 branches last year 31.

Speaker 3: to help serve your customers more effectively.

Speaker 3: you make the investment to make it easier for your employees to serve the customers.

Speaker 3: But you also get the efficiencies along the way because more of the functions can be digitized rather than people-based.

Speaker 3: And so, you know, we closed 34 branches last year, 31 in the end of the third beginning in the fourth quarter.

In the end of the third beginning of the fourth quarter.

We still believe that it's important to have a branch based model, but you know what we've been testing out and improving I think is that a lighter.

Speaker 3: You know, we still believe that it's important to have a branch-based model, but you know, what we've been testing out and proving, I think, is that a lighter branch model approach and particularly in the new state.

Branch model approach and particularly in the new states is paying off and I'd point, you to Illinois, where Illinois at the end of the third quarter, we had $7 million of receivables and the largest branch was two and a half million dollars now fast forward three more months and we're at $12 million and the largest branches $3 5 million.

Speaker 3: is paying off and I'd point you to Illinois where Illinois at the end of the third quarter we had seven million dollars of receivables and the largest branch was two and a half million dollars. Now fast forward three more months.

Speaker 3: and we're at $12 million in the largest branch is 3.5 million.

And that compares to the average.

Speaker 3: And that compares to the average branch in terms of receivables across our network of $4.1 million.

Branch in terms of receivables across our network of $4 $1 million.

And this is the first quarter, we crossed the 4 million Mark So what I would tell you is where we're seeing that having larger branches that can cover greater geographic area not only are they easier to manage because you know you can manage your capacity with people a lot better.

Speaker 3: and this is the first quarter we crossed the 4 million mark. So what I would tell you is we're seeing that having larger branches that can cover greater geographic area, not only are they easier to manage because you can manage your capacity with people a lot better, but they're proven to be more efficient and more productive as well. .

But there are proven to be more efficient and more productive as well.

Great Congratulations.

Right I appreciate it David.

Our next question comes from Sundry suck Ronnie of K B W. Please go ahead.

Speaker 1: Our next question comes from Sanjay Sekhrani of KBW. Please go ahead.

Hi, This is actually Steven Kwok filling in for Sanjay. Thanks for taking my question I guess I just wanted to start out with the 6% of our away, which is a really impressive like how sustainable is that going forward.

Speaker 7: Hi, this is actually Steven Clawfillion, but, Don Jay, thanks for taking my questions. I guess I just want to start out with the 6% RWA, which is really impressive. How sustainable is that going forward? We just talk about the puts and takes that we should think about.

About the puts and takes that we should think about thanks.

Yeah, It kind of gets a little bit to David's question I think this business historically has kind of run at a four 5% ROA.

Speaker 3: Yeah, it kind of gets a little bit to David's question. You know, I think this business historically is kind of run at a 4.5% RLA. I think that's a reasonable number for this business, particularly as we're investing to transform it. But, you know, I think-

I think thats a reasonable.

Number for this business, particularly as we're investing to transform it.

But you know I think that and again hard to put my finger on win because theres a lot of things that are have to happen, but I think that you know as you get more efficient and you know as we get larger too you know I think that that ROA can be four 5% to 5% of course then the question is.

Speaker 3: And again, hard to put my finger on when because there's a lot of things that have to happen. But I think that as you get more efficient and as we get larger too, I think that ROA can be 4.5 to 5%. Of course, then the question is...

You know what opportunities do you have to pass on some benefits to the customers in the form of pricing to maybe grab additional share.

Speaker 3: You know, what opportunities you have to pass on some benefits to the customers.

Speaker 3: in the form of pricing to maybe grab additional share. But I think, you know, looking at it now, we're in that 4.5% range in a normalized environment with opportunity if our investments pay off the way we hope to improve on that amount. Are that returned?

But I think you know looking at it now we're in that four 5% range in a normalized environment with opportunity if our investments pay off the way, we hope to improve on that amount our that return.

Got it got it thanks, and very helpful. Around the interest rate caps, you have but I guess directionally as we think about it.

Speaker 7: Got it. Got it. Thanks. And it felt very helpful around all the interest rate caps you have. But I guess like, directionally as we think about.

Interest rate increases like for every 25 basis point is there an amount that we should think about or is there some level of protection up to you know call. It 50, or 100 basis points, where you won't see any interest rate impacts. Thanks, well look that's a really important question because I want to make sure everybody understands that the.

Speaker 7: interest rate increases. Like for every 25 basis points, is there a amount that we should think about or is there some level of protection up to, you know, call it 50 or 100 basis points where you won't be any interest rate impacts.

Speaker 3: Well, look, that's a really important question because I want to make sure everybody understands that the interest rate caps we bought. Their purchase based on the forward curve at the time we purchased those caps.

Interest rate caps, we bought them their purchase based on the forward curve at the time, we purchased those caps.

And so if there's if there's rate increases built into the forward curve than there is no increase in value of those caps are when that interest rate increase happens.

Speaker 3: And so if there's rate increases built into the forward curve, then there's no increase in value of those caps when that interest rate increase happens.

But by doing this early on in the cycle, and we purchased $550 million and $450 million of that 25, and 50 basis points.

Speaker 3: But by doing this early on the cycle, and we purchased 550 million and 450 million of that 25 and 50 basis point.

What has happened is every quarter, we mark to market the value of the aggregate pool of interest rate caps and so as we saw in the fourth quarter I think harp. The number was $2 $2 million that was the increase in value based on the shift of the forward curve as we go forward and into this year as the forward curve moves.

Speaker 3: What has happened is every quarter we mark the market the value of the aggregate pool of industry cap.

Speaker 3: And so as we saw in the fourth quarter, I think Harp the number was $2.2 million. That was the increase in value based on the shift of the forward curve.

Speaker 3: As we go forward into this year, as the forward curve moves and steepens or are increased in terms of just across the board, the value of those caps can go up. As they, if rates go the other way, then the value of those caps can go down. So there's some degree of volatility that's gonna happen in our quarters, which is why we're being very clear to point that out. But the way to think about it is,

And steepens or our increases in terms of just across the board the value of those caps can go up as they if rates go. The other way then the value of those caps can go down. So there is some degree of volatility that's going to happen in our quarters, which is why we're being very clear to point that out.

But the way to think about it is if we hadn't put these caps on and and interest rates rise.

Speaker 3: If we hadn't put these caps on and interest rates rise as they're gonna do, ultimately, it would reduce our income and our equity. Well, because we have these interest caps in...

Rise is theyre going to do.

Ultimately.

Would reduce our income.

And our equity well because we have these interest caps in place as rates continue to rise in the value of these contracts go up it protects our equity.

Speaker 3: as rates continue to rise and the value of these contracts go up, if protection-

Don't have the loss from that so that's why I harp is very clear to guide on what first quarter interest expense would be without any effect of any mark to market on the hedges.

Speaker 3: We don't have the loss from that. So that's why Harp is very clear to guide on what first quarter interest expense would be without any effect of any mark to market on the hedges. Todd it, thanks for-

Got it thanks for taking my questions.

I appreciate it thanks Steven.

Once again, if you have a question. Please press Star then one our next question comes from John Rowan of Janney. Please go ahead.

Speaker 1: Once again, if you have a question, please press star then one. Our next question comes from John Rowan of Jani.

Good afternoon.

I just have one question I think you gave net charge off guidance for one Q, if I'm not mistaken and I could be that it was 130 basis points lower than one 2019, if I'm off on that please let me know, but I believe there was some type of comment regarding to <unk> charge offs.

Speaker 3: Good afternoon. I just have one question. I think that you gave net charge-off guidance for one queue. If I'm not mistaken, and I could be that it was 130 basis points lower than one COVID-19. If I'm off on that, please let me know. But I believe there was some type of comment regarding to one queue charge-offs.

Yeah, Hi at par it was 130 basis points better than the first quarter of 2020.

Speaker 4: Yeah, hi, it's hard. It was 130 basis planes better than 1st quarter of 2020.

So better than that next level.

So you said 120 basis points better than the 10, 5% you reported in <unk> 'twenty.

Speaker 8: So you said 120 basis points better than the 10.5% you reported in 1Q20. Is that the numbers correct? Yeah, 130 basis points better. And then for the full year, it's 8.5, correct?

Correct Yeah.

130 basis points better yeah.

Okay, and then for the full year, it's eight five correct.

Yeah approximately 825.

Okay, that's what I needed. Thank you.

Youre welcome.

Our next question comes from Bill <unk> of Titan Capital. Please go ahead.

Speaker 1: Our next question comes from Bill Dizzlem of Titan Capital. Please go ahead.

I think you did we hear correctly that our first quarter demand is stronger than you had planned for and if that if we did hear that correctly.

Speaker 9: uh... thank you did we hear correctly that uh... first quarter demand is stronger than you had planned for and if that uh... if we did hear that correctly uh... what do you believe is driving

Do you believe is driving it.

Oh, Hey, Bill how are you.

Speaker 3: you know i hate bill how are you um... yeah you know i i i don't think we're saying that first-order demand is stronger than we anticipate it i think that what's happening here is we obviously out of very strong for quarter uh... you know we beat the guidance of one point four billion by about twenty six million

You know I I I don't think we're saying that first quarter demand is stronger than we anticipated I think that what's happening here is we obviously had a very strong fourth quarter.

We beat the guidance of $1 4 billion by about 26 million.

So were jumping off the year at a higher point.

Speaker 3: So we're jumping off the year at a higher point. And so as we look at normal seasonal runoff, we anticipate that at the end of the first quarter we'll be at around $1.4 billion. That's dead.

So as we look at normal seasonal run off we anticipate that at the end of the first quarter will be at around $1 $4 billion.

That said.

You know I think demand has the underlying demand has remained strong but we're gonna get impacted like like we always do seasonally by by the tax season.

Speaker 3: You know, I think demand has the underlying demand, it has remained strong, but we're gonna get impacted like we all deduce to easily by the tax season. A little hard to determine exactly how the refunds are gonna come in this year, just because I think it's always a bit fluid on how the IRS works through returns and how fast they get the refunds out. So there could be a little bit of lumpiness.

A little hard to determine exactly how the refunds are going to come in this year.

Just because I think it's it's always a bit fluid on how the IRS works through returns and how fast they get the refunds out so there could be a little bit of lumpiness around you know.

Speaker 3: around the impact on net receivables at the end of the first quarter. And a little lumpiness in terms of the lengthensies too, if whatever reason tax refunds get if the lady did it by any amount.

The impact on on net receivables at the end of the first quarter and a little Lumpiness in terms of delinquencies to if if for whatever reason tax refunds get delayed by any amount.

Understood.

And then relative to the 100 basis point improvement in delinquencies versus two years ago that you referenced.

Speaker 9: I understood. And then relative to the 100 basis point improvement in delinquencies versus two years ago that you referenced.

Would you talk about how much of that you think is a function of consumers simply being better yield as a result of of all of the stimulus money that they've received over the last couple of years.

Speaker 9: What you talk about how much of that you think is a function of consumers simply being better healed as a result of all of the stimulus money that they've received over the last couple years versus all of the internal initiatives that you all have undertaken over the course of the last two or three years.

This is all of the internal initiatives that you all have undertaken over the course of the last two or three years.

I would say this it's hard to pinpoint the exact amount, but what I can tell you by the time he got to the fourth quarter I think across the U S. Economy. There was I think it was about $200 billion left of child tax credits that hit in the fourth quarter.

Speaker 3: I would say this, it's hard to pinpoint the exact amount, but what I can tell you by the time you got to the fourth quarter, I think that across the US economy, there was, I think it was about $200 billion left of child tax credits that hit in the fourth quarter. And so clearly there was still some impact of that going through the system for all enders.

And so clearly there is still some impact of that going through.

The system for all lenders.

But clearly one of the things that that we saw is the first generation scorecard, we put in at the end of 2018.

Speaker 3: But clearly one of the things that we saw is the first generation scorecard we put in at the end of 2018.

Has done and has performed very well throughout the pandemic and so you know I think that Theres. No question that that that has had an impact I think some of the things we did or I know some of the things we did too.

Speaker 3: has performed very well throughout the pandemic.

Speaker 3: And so, I think that there's no question that that has had an impact. I think some of the things we did, or I know some of the things we did to tighten up around income verification and asking for more recent pay stubs, and the like certainly all had an impact as well. But it's hard for us to kind of point to how much does due to, you know,

Aten up around income verification and asking for more recent pay stubs and the like certainly all had had an impact as well, but it but it's hard for us to kind of point to how much is due to you know.

The remaining stimulus dollars a child tax credit versus what we did but I would go back and say you know kind of if you look at others that have reported you know look I am pleased the fact that both our delinquencies as.

Speaker 3: the remaining stimulus dollars or child tax credits versus what we did. But I would go back and say, you know, kind of if you look at others that have reported, you know, look, I am pleased the fact that both are delinquencies as well as our NCL.

As well as our NCL remained below.

2019 levels I think thats.

Speaker 3: remains below 2019 levels. I think that's an encouraging sign.

That that's an encouraging sign.

A very impressive one additional question.

Speaker 9: very impressive. One additional question as you were talking to a couple of the prior questioners who were probably trying to get roughly at this question here.

Got you were talking to a couple of the prior questioners.

Who were probably trying to get a roughly it at this question here.

Is that when you take into account all of the moving factors, including the receivable growth that you would anticipate over the course of 'twenty two.

Speaker 9: When you take into account all of the moving factors, including the receivable growth that you would anticipate over the course of 22, you believe that your earnings per share could ultimately end up similar in 22 to where they were in 21, even though we were all thinking that 21 was abnormally...

Do you believe that your earnings per share could ultimately end up similar in 'twenty two to where they were in 'twenty, one and even though we were all thinking that 21 was abnormally are abnormally high.

Well look we're not we're not going to give guidance I think we gave guidance last year, which is in part because of just all the noise going on with with Covid. One might argue maybe this year theres still that noise going on.

Speaker 3: Well, look, we're not gonna give guidance. I think we gave guidance last year, which is in part because of just all the noise that's going on with COVID. One might argue maybe this year, there's still that noise going on. You know, I would say it this way. There's no question, Cret, it's gonna normalize.

I would say it this way.

No question credit is going to normalize.

You know, we're expecting you know strong demand to drive to drive volumes, which drive revenues and of course, we're going to be investing in the business as we look to expand nationally and do all the things I talked about.

Speaker 3: You know, we're expecting, you know, strong demand to drive, to drive volumes, which drive revenues. And of course, we're going to be investing in the business as we look to expand nationally and do all the things I talked about. I think one of the things that, you know, you have to think about is when you achieve that, that volume growth that, you know, we've achieved in the past.

One of the things that you know you have to think about is when you achieve that that volume growth that we've achieved in the past is you got to build your seasonal reserves day, one and you now take that normalized 10, 8% rate and put that on top of your receivable growth and effectively what it means.

Speaker 3: is you got to build your CSO reserves day one. And take that normalized 10.8% rate and put that on top of your receivable growth. And effectively what it means is any growth, particularly in the very second half of the year, has actually got a negative bottom line impact and not a positive bottom line.

Is any growth, particularly in the very.

Second half of the year, it's actually got a negative bottom line impact not a positive bottom line impact.

And so that's just the math of having see so but obviously what that does is build.

Speaker 3: And so that's just the math of having sea salt, but obviously what that does is build ever increasing revenues in future years and continue to drive the profitability in the future. So that's going to be the story this year.

Ever increasing revenues in future years, and continue to drive the profitability in the future. So you.

You know that that's going to be the story this year.

Thank you for taking all the questions.

No I appreciate it bill.

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

Speaker 1: This concludes the question and answer session. I would like to turn the conference back over to Mr. Beck for any closing remarks.

No. Thanks, Thanks, operator look in closing I'd like to say I couldn't be prouder of the regional team as I said earlier, we had a record year in 2021 and it benefited our customers our team members our communities and our shareholders.

Speaker 3: No, thanks, thanks, operator. Look, in closing, I like to say I couldn't be prouder of the regional team. You know, as I said earlier, we had a record year in 2021 and it benefited our customers, our team members, our communities, and our shareholders.

When I reflect back since the start of the pandemic.

Speaker 3: You know, when I reflect back since the start of the pandemic, you know, I have to say we've addressed the adversity head on, you know, and despite the challenges, you know, we invested heavily in our business to improve our omnichannel capabilities. You know, included entering three new states and clearly more to come. If I look at where we stand today, we are far ahead of where we were at the start of the pandemic, which has and will benefit our hardworking customers and support their financial well-being. And these investments over the last two years.

I have to say we've addressed the adversity head on you know in.

And despite the challenges we invested heavily in our business to improve our omnichannel capabilities.

Included entering three new states.

Clearly more to come.

If I look at where we stand today, we are far ahead of where we were at the start of the pandemic.

Which has and will benefit our hard working customers and support their financial wellbeing.

These investments over the last few years.

Not only resulted in the record performance this year or in 2021, but allowed us to expand our market share in our anr.

Speaker 3: not only resulted in the record performance this year or in 2021 but allowed us to expand our market share and our E&R spends the end of 2019 is up roughly 300 million or 26%.

Since the end of 2019 is up roughly $300 million or 26%.

We continue to invest in our team members as I said.

Speaker 3: You know, we continue to invest in our team members, as I said, increasing salaries and benefits and invested in the communities we serve. We've de-risked the business by investing in, you know, our custom underwriting models. And we've shifted to 83% of our portfolio to higher quality loans at or below 36%. Pre-pandemic, we were at 75%.

Increasing salaries and benefits and invested in the communities we serve.

Derisk the business by investing in our custom underwriting our models and we've shifted the 83% of our portfolio to higher quality loans at or below 36% pre.

Pre pandemic, we were at 75%.

Strengthen our balance sheet, 78% of our debt is fixed today I talked about the $550 million of interest rate caps, and we have about $557 million of available liquidity to fund our growth.

Speaker 3: You know, we strengthen our balance sheet. 78% of our debt is fixed today. I talked about the 550 million of interest rate caps and we have about 557 million of available with the funder growth. And after supporting the growth, first step worthy to be richtig Right? You heard that earlier election phase as set of university You heard that earlier election phase as set of university

And after supporting the growth of our business.

We have returned $92 million of capital of our shareholders.

Speaker 3: We've returned $92 million a capital, our shareholders. And that included buying back 17% of our outstanding shares from the beginning of 2020, which is pretty remarkable.

And that included buying back 17% of our outstanding shares from <unk> from the beginning of 2020.

Which is pretty remarkable.

As we enter this new year.

Speaker 3: You know, as we enter this new year, we're in a very well positioned to continue our growth in 2022 and beyond and expect to deliver consistent and predictable and superior results, which...

We're very well positioned to continue our growth in 2022 and beyond.

And expect it.

To deliver consistent and predictable and superior results, which is.

It is our goal as I said, we built the growth company, we expect to continue to expand our market share.

Speaker 3: is our goal. As I said, we built the growth company. We expect to continue to expand our market share.

As we stay focused on our key priorities, which which are investing in our geographic mix.

Speaker 3: as we stay focused on our key priorities, which are investing in our geographic footprint to become a nationwide

Geographic footprint.

To become a nationwide lender.

Enhancing our digital and omni channel capabilities and of course, continuing to develop and expand our products and channels.

Speaker 3: Enhancing our digital and omnichannel capabilities and of course continuing to develop and expand our products and channels.

And all of this supported by ever improving advanced data and analytics. So I'd just leave it with US all of US at regional are very excited about the future and I really appreciate everybody joining the call Tonight.

Speaker 3: and all of this supported by ever improving advanced data and analytics. So I just leave you with this. All of us that are very excited about the future. And I really appreciate everybody joining me.

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

Speaker 1: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day. Thank you, all of us.

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