QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
| ||
(Address of principal executive offices) |
(Zip Code) |
Title of Each Class |
Trading Symbol |
Name of Each Exchange on Which Registered | ||
Large accelerated filer | ☐ | ☒ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
Page No. |
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PART I. |
FINANCIAL INFORMATION |
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Item 1. |
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3 |
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4 |
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5 |
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6 |
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7 |
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Item 2. |
23 |
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Item 3. |
44 |
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Item 4. |
45 |
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PART II |
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Item 1. |
46 |
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Item 1A. |
46 |
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Item 6. |
48 |
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49 |
ITEM 1. |
FINANCIAL STATEMENTS. |
June 30, 2020 (Unaudited) |
December 31, |
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Assets |
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Cash |
$ | $ | ||||||
Net finance receivables |
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Unearned insurance premiums |
( |
) | ( |
) | ||||
Allowance for credit losses |
( |
) | ( |
) | ||||
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Net finance receivables, less unearned insurance premiums and allowance for credit losses |
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Restricted cash |
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Lease assets |
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Property and equipment |
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Intangible assets |
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Deferred tax asset |
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Other assets |
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Total assets |
$ | $ | ||||||
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Liabilities and Stockholders’ Equity |
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Liabilities: |
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Long-term debt |
$ | $ | ||||||
Unamortized debt issuance costs |
( |
) | ( |
) | ||||
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Net long-term debt |
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Accounts payable and accrued expenses |
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Lease liabilities |
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Total liabilities |
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Commitments and contingencies (Note 10) |
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Stockholders’ equity: |
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Preferred stock ($ | ||||||||
Common stock ($ | ||||||||
Additional paid-in capital |
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Retained earnings |
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Treasury stock ( |
( |
) | ( |
) | ||||
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ | $ | ||||||
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Assets |
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Cash |
$ | $ | ||||||
Net finance receivables |
||||||||
Allowance for credit losses |
( |
) | ( |
) | ||||
Restricted cash |
||||||||
Other assets |
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Total assets |
$ | $ | ||||||
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Liabilities |
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Net long-term debt |
$ | $ | ||||||
Accounts payable and accrued expenses |
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Total liabilities |
$ | $ | ||||||
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2020 |
2019 |
2020 |
2019 |
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Revenue |
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Interest and fee income |
$ | $ | $ | $ | ||||||||||||
Insurance income, net |
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Other income |
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Total revenue |
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Expenses |
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Provision for credit losses |
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Personnel |
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Occupancy |
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Marketing |
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Other |
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Total general and administrative expenses |
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Interest expense |
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Income before income taxes |
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Income taxes |
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Net income |
$ | $ | $ | $ | ||||||||||||
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Net income per common share: |
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Basic |
$ | $ | $ | $ | ||||||||||||
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Diluted |
$ | $ | $ | $ | ||||||||||||
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Weighted-average shares outstanding: |
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Basic |
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Diluted |
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Three Months Ended June 30, 2020 |
||||||||||||||||||||||||
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Treasury Stock |
Total |
||||||||||||||||||||
Shares |
Amount |
|||||||||||||||||||||||
Balance, March 31, 2020 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Issuance of restricted stock awards |
( |
) | — | — | — | |||||||||||||||||||
Shares withheld related to net share settlement |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
Share-based compensation |
— | — | — | — | ||||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
|
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|
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|||||||||||||
Balance, June 30, 2020 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
|
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|
|
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|
|
|
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|
Three Months Ended June 30, 2019 |
||||||||||||||||||||||||
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Treasury Stock |
Total |
||||||||||||||||||||
Shares |
Amount |
|||||||||||||||||||||||
Balance, March 31, 2019 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Issuance of restricted stock awards |
( |
) | — | — | — | |||||||||||||||||||
Repurchase of common stock |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Shares withheld related to net share settlement |
— | ( |
) | ( |
) | — | — | ( |
) | |||||||||||||||
Share-based compensation |
— | — | — | — | ||||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
|
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|
|||||||||||||
Balance, June 30, 2019 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2020 |
||||||||||||||||||||||||
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Treasury Stock |
Total |
||||||||||||||||||||
Shares |
Amount |
|||||||||||||||||||||||
Balance, December 31, 2019 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Cumulative effect of accounting standard adoption |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
Issuance of restricted stock awards |
( |
) | — | — | — | |||||||||||||||||||
Exercise of stock options |
— | — | — | |||||||||||||||||||||
Shares withheld related to net share settlement |
( |
) | ( |
) | ( |
) | — | — | ( |
) | ||||||||||||||
Share-based compensation |
— | — | — | — | ||||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
|
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|||||||||||||
Balance, June 30, 2020 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
|
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|
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|
|
|
|
|
|
Six Months Ended June 30, 2019 |
||||||||||||||||||||||||
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Treasury Stock |
Total |
||||||||||||||||||||
Shares |
Amount |
|||||||||||||||||||||||
Balance, December 31, 2018 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Issuance of restricted stock awards |
( |
) | — | — | — | |||||||||||||||||||
Repurchase of common stock |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Shares withheld related to net share settlement |
( |
) | ( |
) | ( |
) | — | — | ( |
) | ||||||||||||||
Share-based compensation |
— | — | — | — | ||||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
|
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|
|
|
|
|
|
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|
|
|
|||||||||||||
Balance, June 30, 2019 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
|
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|
|
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|
|
|
Six Months Ended June 30, |
||||||||
2020 |
2019 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Provision for credit losses |
||||||||
Depreciation and amortization |
||||||||
Loss on disposal of property and equipment |
||||||||
Share-based compensation |
||||||||
Fair value adjustment on interest rate caps |
||||||||
Deferred income taxes, net |
( |
) | ( |
) | ||||
Changes in operating assets and liabilities: |
||||||||
Increase in other assets |
( |
) | ( |
) | ||||
Increase (decrease) in accounts payable and accrued expenses |
( |
) | ||||||
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Net cash provided by operating activities |
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Cash flows from investing activities: |
||||||||
Net repayments (originations) of finance receivables |
( |
) | ||||||
Purchases of intangible assets |
( |
) | ( |
) | ||||
Purchases of property and equipment |
( |
) | ( |
) | ||||
Proceeds from disposal of property and equipment |
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Net cash provided by (used in) investing activities |
( |
) | ||||||
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|
|
|||||
Cash flows from financing activities: |
||||||||
Net advances (payments) on senior revolving credit facility |
( |
) | ||||||
Payments on amortizing loan |
— | ( |
) | |||||
Net advances (payments) on revolving warehouse credit facility |
( |
) | ||||||
Net payments on securitizations |
— | ( |
) | |||||
Payments for debt issuance costs |
( |
) | ( |
) | ||||
Taxes paid related to net share settlement of equity awards |
( |
) | ( |
) | ||||
Repurchase of common stock |
— | ( |
) | |||||
|
|
|
|
|||||
Net cash provided by (used in) financing activities |
( |
) | ||||||
|
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|
|
|||||
Net change in cash and restricted cash |
( |
) | ||||||
Cash and restricted cash at beginning of period |
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Cash and restricted cash at end of period |
$ | $ | ||||||
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|
|||||
Supplemental cash flow information: |
||||||||
Interest paid |
$ | $ | ||||||
|
|
|
|
|||||
Income taxes paid |
$ | $ | ||||||
|
|
|
|
June 30, 2020 |
December 31, 2019 |
June 30, 2019 |
December 31, 2018 |
|||||||||||||
Cash |
$ | $ | $ | $ | ||||||||||||
Restricted cash |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash and restricted cash |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
December 31, 2019 |
January 1, 2020 |
|||||||||||
In thousands |
Pre-CECL Adoption |
Impact of Adoption |
Post-CECL Adoption |
|||||||||
Small loans |
$ | $ | $ | |||||||||
Large loans |
||||||||||||
Automobile loans |
||||||||||||
Retail loans |
||||||||||||
|
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|
|
|
|
|||||||
Allowance for credit losses |
$ | $ | $ | |||||||||
|
|
|
|
|
|
In thousands |
June 30, 2020 |
December 31, 2019 |
||||||
Small loans |
$ | $ | ||||||
Large loans |
||||||||
Automobile loans |
||||||||
Retail loans |
||||||||
|
|
|
|
|||||
Net finance receivables |
$ | $ | ||||||
|
|
|
|
Quarterly Trend – As Reported (Pre-CECL Adoption) |
||||||||||||||||
In thousands |
3/31/2019 |
6/30/2019 |
9/30/2019 |
12/31/2019 |
||||||||||||
Gross finance receivables |
$ | $ | $ | $ | ||||||||||||
Unearned finance charges |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Unearned insurance premiums |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Finance receivables |
||||||||||||||||
Allowance for credit losses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net finance receivables |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Average finance receivables |
$ | $ | $ | $ | ||||||||||||
|
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|
|
|
|
|
|
|||||||||
As a % of finance receivables: |
||||||||||||||||
Allowance for credit losses |
% | % | % | % | ||||||||||||
30+ day contractual delinquency |
% | % | % | % | ||||||||||||
As a % of average finance receivables: |
||||||||||||||||
Interest and fee yield (annualized) |
% | % | % | % | ||||||||||||
Operating expense ratio (annualized) |
% | % | % | % | ||||||||||||
Net credit loss ratio (annualized) |
% | % | % | % |
Quarterly Trend – Amortized Cost Basis (Post-CECL Adoption) |
||||||||||||||||
In thousands |
3/31/2019 |
6/30/2019 |
9/30/2019 |
12/31/2019 |
||||||||||||
Net finance receivables |
$ |
$ |
$ |
$ |
||||||||||||
Unearned insurance premiums |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Allowance for credit losses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net finance receivables, less unearned insurance premiums and allowance for credit losses |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Average net finance receivables |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
As a % of net finance receivables: |
||||||||||||||||
Allowance for credit losses |
% | % | % | % | ||||||||||||
30+ day contractual delinquency |
% | % | % | % | ||||||||||||
As a % of average net finance receivables: |
||||||||||||||||
Interest and fee yield (annualized) |
% | % | % | % | ||||||||||||
Operating expense ratio (annualized) |
% | % | % | % | ||||||||||||
Net credit loss ratio (annualized) |
% | % | % | % |
Quarterly Trend – Reclassification Change |
||||||||||||||||
In thousands |
3/31/2019 |
6/30/2019 |
9/30/2019 |
12/31/2019 |
||||||||||||
Net finance receivables |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Average net finance receivables |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
As a % of net finance receivables: |
||||||||||||||||
Allowance for credit losses |
( |
)% | ( |
)% | ( |
)% | ( |
)% | ||||||||
30+ day contractual delinquency |
( |
)% | ( |
)% | ( |
)% | ( |
)% | ||||||||
As a % of average net finance receivables: |
||||||||||||||||
Interest and fee yield (annualized) |
( |
)% | ( |
)% | ( |
)% | ( |
)% | ||||||||
Operating expense ratio (annualized) |
( |
)% | ( |
)% | ( |
)% | ( |
)% | ||||||||
Net credit loss ratio (annualized) |
( |
)% | ( |
)% | ( |
)% | ( |
)% |
Net Finance Receivables by Origination Year |
||||||||||||||||||||||||||||
In thousands |
2020 (1) |
2019 |
2018 |
2017 |
2016 |
Prior |
Total Net Finance Receivables |
|||||||||||||||||||||
Small loans: |
||||||||||||||||||||||||||||
FICO Band |
||||||||||||||||||||||||||||
1 |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
2 |
||||||||||||||||||||||||||||
3 |
||||||||||||||||||||||||||||
4 |
||||||||||||||||||||||||||||
5 |
— | |||||||||||||||||||||||||||
6 |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total small loans |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Large loans: |
||||||||||||||||||||||||||||
FICO Band |
||||||||||||||||||||||||||||
1 |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
2 |
||||||||||||||||||||||||||||
3 |
||||||||||||||||||||||||||||
4 |
||||||||||||||||||||||||||||
5 |
||||||||||||||||||||||||||||
6 |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total large loans |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Automobile loans: |
||||||||||||||||||||||||||||
FICO Band |
||||||||||||||||||||||||||||
1 |
$ | — | $ | — | $ | — | $ | $ | $ | $ | ||||||||||||||||||
2 |
— | — | — | |||||||||||||||||||||||||
3 |
— | — | — | |||||||||||||||||||||||||
4 |
— | — | — | |||||||||||||||||||||||||
5 |
— | — | — | |||||||||||||||||||||||||
6 |
— | — | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total automobile loans |
$ | — | $ | — | $ | — | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Retail loans: |
||||||||||||||||||||||||||||
FICO Band |
||||||||||||||||||||||||||||
1 |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
2 |
||||||||||||||||||||||||||||
3 |
||||||||||||||||||||||||||||
4 |
||||||||||||||||||||||||||||
5 |
||||||||||||||||||||||||||||
6 |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total retail loans |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total loans: |
||||||||||||||||||||||||||||
FICO Band |
||||||||||||||||||||||||||||
1 |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
2 |
||||||||||||||||||||||||||||
3 |
||||||||||||||||||||||||||||
4 |
||||||||||||||||||||||||||||
5 |
||||||||||||||||||||||||||||
6 |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total loans |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Includes loans originated during the six months ended June 30, 2020. |
June 30, 2020 |
||||||||||||||||||||||||||||||||||||||||
Small |
Large |
Automobile |
Retail |
Total |
||||||||||||||||||||||||||||||||||||
In thousands |
$ |
% |
$ |
% |
$ |
% |
$ |
% |
$ |
% |
||||||||||||||||||||||||||||||
Current |
$ | % | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||
1 to 29 days past due |
% | % | % | % | % | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Delinquent accounts |
||||||||||||||||||||||||||||||||||||||||
30 to 59 days |
% | % | % | % | % | |||||||||||||||||||||||||||||||||||
60 to 89 days |
% | % | % | % | % | |||||||||||||||||||||||||||||||||||
90 to 119 days |
% | % | % | % | % | |||||||||||||||||||||||||||||||||||
120 to 149 days |
% | % | % | % | % | |||||||||||||||||||||||||||||||||||
150 to 179 days |
% | % | % | % | % | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total delinquency |
$ | % | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total net finance receivables |
$ | % | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net finance receivables in nonaccrual status |
$ | % | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
||||||||||||||||||||||||||||||||||||||||
Small |
Large |
Automobile |
Retail |
Total |
||||||||||||||||||||||||||||||||||||
In thousands |
$ |
% |
$ |
% |
$ |
% |
$ |
% |
$ |
% |
||||||||||||||||||||||||||||||
Current |
$ | % | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||
1 to 29 days past due |
% | % | % | % | % | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Delinquent accounts |
||||||||||||||||||||||||||||||||||||||||
30 to 59 days |
% | % | % | % | % | |||||||||||||||||||||||||||||||||||
60 to 89 days |
% | % | % | % | % | |||||||||||||||||||||||||||||||||||
90 to 119 days |
% | % | % | % | % | |||||||||||||||||||||||||||||||||||
120 to 149 days |
% | % | % | % | % | |||||||||||||||||||||||||||||||||||
150 to 179 days |
% | % | % | % | % | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total delinquency |
$ | % | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total net finance receivables |
$ | % | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net finance receivables in nonaccrual status |
$ | % | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
January 1, 2020 |
Six Months Ended June 30, |
||||||||||||||||||
In thousands |
Pre-CECL Adoption |
Impact of Adoption |
Post-CECL Adoption |
Reserve Build (Release) |
Ending Balance |
|||||||||||||||
Small loans |
$ | $ | $ | $ | $ | |||||||||||||||
Large loans |
||||||||||||||||||||
Automobile loans |
( |
) | ||||||||||||||||||
Retail loans |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Allowance for credit losses |
$ | $ | $ | $ | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Allowance for credit losses as a percentage of net finance receivables |
% | % | % | % | ||||||||||||||||
|
|
|
|
|
|
|
|
In thousands |
Small |
Large |
Automobile |
Retail |
Total |
|||||||||||||||
Beginning balance at April 1, 2020 |
$ | $ | $ | $ | $ | |||||||||||||||
Provision for credit losses |
||||||||||||||||||||
Credit losses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Recoveries |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ending balance at June 30, 2020 |
||||||||||||||||||||
Net finance receivables at June 30, 2020 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Allowance as percentage of net finance receivables at June 30, 2020 |
% | % | % | % | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
In thousands |
Small |
Large |
Automobile |
Retail |
Total |
|||||||||||||||
Beginning balance at April 1, 2019 |
$ | $ | $ | $ | $ | |||||||||||||||
Provision for credit losses |
||||||||||||||||||||
Credit losses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Recoveries |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ending balance at June 30, 2019 |
||||||||||||||||||||
Net finance receivables at June 30, 2019 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Allowance as percentage of net finance receivables at June 30, 2019 |
% | % | % | % | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
In thousands |
Small |
Large |
Automobile |
Retail |
Total |
|||||||||||||||
Beginning balance at January 1, 2020 |
$ | $ | $ | $ | $ | |||||||||||||||
Impact of CECL adoption |
||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||
Credit losses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Recoveries |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ending balance at June 30, 2020 |
||||||||||||||||||||
Net finance receivables at June 30, 2020 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Allowance as percentage of net finance receivables at June 30, 2020 |
% | % | % | % | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
In thousands |
Small |
Large |
Automobile |
Retail |
Total |
|||||||||||||||
Beginning balance at January 1, 2019 |
$ | $ | $ | $ | $ | |||||||||||||||
Provision for credit losses |
||||||||||||||||||||
Credit losses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Recoveries |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ending balance at June 30, 2019 |
||||||||||||||||||||
Net finance receivables at June 30, 2019 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Allowance as percentage of net finance receivables at June 30, 2019 |
% | % | % | % | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In thousands |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Balance at beginning of period |
$ | $ | $ | — | $ | |||||||||||
Purchases |
— | — | — | |||||||||||||
Fair value adjustment included as an increase in interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance at end of period, included in other assets |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
June 30, 2020 |
December 31, 2019 |
|||||||||||||||||||||||
In thousands |
Long-Term Debt |
Unamortized Debt Issuance Costs |
Net Long-Term Debt |
Long-Term Debt |
Unamortized Debt Issuance Costs |
Net Long-Term Debt |
||||||||||||||||||
Senior revolving credit facility |
$ | $ | ( |
) | $ | $ | $ | ( |
) | $ | ||||||||||||||
Revolving warehouse credit facility |
( |
) | ( |
) | ||||||||||||||||||||
RMIT 2018-1 securitization |
( |
) | ( |
) | ||||||||||||||||||||
RMIT 2018-2 securitization |
( |
) | ( |
) | ||||||||||||||||||||
RMIT 2019-1 securitization |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | $ | ( |
) | $ | $ | $ | ( |
) | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Unused amount of revolving credit facilities (subject to borrowing base) |
$ | $ | ||||||||||||||||||||||
|
|
|
|
In thousands |
June 30, 2020 |
December 31, 2019 |
||||||
Assets |
||||||||
Cash |
$ | $ | ||||||
Net finance receivables |
||||||||
Allowance for credit losses |
( |
) | ( |
) | ||||
Restricted cash |
||||||||
Other assets |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
Liabilities |
||||||||
Net long-term debt |
$ | $ | ||||||
Accounts payable and accrued expenses |
||||||||
|
|
|
|
|||||
Total liabilities |
$ | $ | ||||||
|
|
|
|
June 30, 2020 |
December 31, 2019 |
|||||||||||||||
In thousands |
Carrying Amount |
Estimated Fair Value |
Carrying Amount |
Estimated Fair Value |
||||||||||||
Assets |
||||||||||||||||
Level 1 inputs |
||||||||||||||||
Cash |
$ | $ | $ | $ | ||||||||||||
Restricted cash |
||||||||||||||||
Level 2 inputs |
||||||||||||||||
Interest rate caps |
— | — | ||||||||||||||
Level 3 inputs |
||||||||||||||||
Net finance receivables, less unearned insurance premiums and allowance for credit losses |
||||||||||||||||
Liabilities |
||||||||||||||||
Level 3 inputs |
||||||||||||||||
Long-term debt |
Three Months Ended June 30, |
||||||||||||||||
2020 |
2019 |
|||||||||||||||
In thousands |
$ |
% |
$ |
% |
||||||||||||
Federal tax expense at statutory rate |
$ |
% |
$ |
% | ||||||||||||
Increase (reduction) in income taxes resulting from: |
||||||||||||||||
State tax, net of federal benefit |
% |
% | ||||||||||||||
Section 162(m) limitation |
% |
% | ||||||||||||||
Excess tax (benefits) deficiencies from share-based awards |
% |
( |
) |
( |
)% | |||||||||||
Other |
( |
) |
( |
)% |
( |
) |
( |
)% | ||||||||
|
|
|
|
|
|
|
|
|||||||||
$ |
% |
$ |
% | |||||||||||||
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||||||||||
2020 |
2019 |
|||||||||||||||
In thousands |
$ |
% |
$ |
% |
||||||||||||
Federal tax expense at statutory rate |
$ |
% |
$ |
% | ||||||||||||
Increase (reduction) in income taxes resulting from: |
||||||||||||||||
State tax, net of federal benefit |
% |
% | ||||||||||||||
Section 162(m) limitation |
% |
% | ||||||||||||||
Excess tax (benefits) deficiencies from share-based awards |
% |
( |
) | ( |
) % | |||||||||||
Other |
( |
) | ( |
) % |
( |
) | ( |
) % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
|
$ | % |
$ | % | ||||||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In thousands, except per share amounts |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Numerator: |
||||||||||||||||
Net income |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Denominator: |
||||||||||||||||
Weighted-average shares outstanding for basic earnings per share |
||||||||||||||||
Effect of dilutive securities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted-average shares adjusted for dilutive securities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Earnings per share: |
||||||||||||||||
Basic |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||
2020 |
2019 |
|||||||
Expected volatility |
% | % | ||||||
Expected dividends |
% | % | ||||||
Expected term (in years) |
||||||||
Risk-free rate |
% | % |
In thousands, except per share amounts |
Number of Shares |
Weighted-Average Exercise Price Per Share |
Weighted-Average Remaining Contractual Life (Years) |
Aggregate Intrinsic Value |
||||||||||||
Options outstanding at January 1, 2020 |
$ | |||||||||||||||
Granted |
||||||||||||||||
Exercised |
( |
) | ||||||||||||||
Forfeited |
( |
) | ||||||||||||||
Expired |
||||||||||||||||
|
|
|
|
|||||||||||||
Options outstanding at June 30, 2020 |
$ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Options exercisable at June 30, 2020 |
$ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In thousands, except per share amounts |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Weighted-average grant date fair value per share |
$ | $ | $ | $ | ||||||||||||
Intrinsic value of options exercised |
$ | $ | $ | $ | ||||||||||||
Fair value of stock options that vested |
$ | $ | $ | $ |
In thousands, except per unit amounts |
Units |
Weighted-Average Grant Date Fair Value Per Unit |
||||||
Non-vested units at January 1, 2020 |
$ | |||||||
Granted (target) |
||||||||
Achieved performance adjustment (1) |
( |
) | ||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Non-vested units at June 30, 2020 |
$ | |||||||
|
|
|
|
|
|
(1) | The 2017 LTIP RSUs were earned and vested at |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In thousands, except per unit amounts |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Weighted-average grant date fair value per unit |
$ | $ | $ | $ | ||||||||||||
Fair value of RSUs that vested |
$ | $ | $ | $ |
In thousands, except per share amounts |
Shares |
Weighted-Average Grant Date Fair Value Per Share |
||||||
Non-vested shares at January 1, 2020 |
$ | |||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Non-vested shares at June 30, 2020 |
$ | |||||||
|
|
|
|
Three Months Ended June 30, |
Six M onths EndedJune 30, |
|||||||||||||||
In thousands, except per share amounts |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Weighted-average grant date fair value per share |
$ | $ | $ | $ | ||||||||||||
Fair value of RSAs that vested |
$ | $ | $ | $ |
ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
• | Small Loans ( £ $2,500) |
• | Large Loans (>$2,500) |
• | Retail Loans |
• | Optional Insurance Products |
2Q 20 |
2Q 19 |
YTD 20 |
YTD 19 |
|||||||||||||||||||||||||||||
In thousands |
Amount |
% of Average Net Finance Receivables |
Amount |
% of Average Net Finance Receivables |
Amount |
% of Average Net Finance Receivables |
Amount |
% of Average Net Finance Receivables |
||||||||||||||||||||||||
Revenue |
||||||||||||||||||||||||||||||||
Interest and fee income |
$ | 80,067 | 30.5 | % | $ | 75,974 | 31.8 | % | $ | 167,064 | 30.8 | % | $ | 150,296 | 31.6 | % | ||||||||||||||||
Insurance income, net |
7,650 | 2.9 | % | 5,066 | 2.1 | % | 13,599 | 2.5 | % | 9,179 | 1.9 | % | ||||||||||||||||||||
Other income |
2,133 | 0.8 | % | 3,234 | 1.4 | % | 5,261 | 0.9 | % | 6,547 | 1.5 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total revenue |
89,850 | 34.2 | % | 84,274 | 35.3 | % | 185,924 | 34.2 | % | 166,022 | 35.0 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Expenses |
||||||||||||||||||||||||||||||||
Provision for credit losses |
27,499 | 10.5 | % | 25,714 | 10.8 | % | 77,021 | 14.2 | % | 49,057 | 10.3 | % | ||||||||||||||||||||
Personnel |
26,863 | 10.2 | % | 22,511 | 9.4 | % | 56,374 | 10.4 | % | 44,904 | 9.5 | % | ||||||||||||||||||||
Occupancy |
6,253 | 2.4 | % | 6,210 | 2.6 | % | 12,024 | 2.2 | % | 12,375 | 2.6 | % | ||||||||||||||||||||
Marketing |
1,438 | 0.5 | % | 2,261 | 0.9 | % | 3,124 | 0.6 | % | 3,912 | 0.8 | % | ||||||||||||||||||||
Other |
6,971 | 2.7 | % | 6,761 | 2.9 | % | 16,246 | 3.0 | % | 14,735 | 3.1 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total general and administrative |
41,525 | 15.8 | % | 37,743 | 15.8 | % | 87,768 | 16.2 | % | 75,926 | 16.0 | % | ||||||||||||||||||||
Interest expense |
9,137 | 3.4 | % | 9,771 | 4.1 | % | 19,296 | 3.5 | % | 19,492 | 4.2 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Income before income taxes |
11,689 | 4.5 | % | 11,046 | 4.6 | % | 1,839 | 0.3 | % | 21,547 | 4.5 | % | ||||||||||||||||||||
Income taxes |
4,219 | 1.7 | % | 2,677 | 1.1 | % | 694 | 0.1 | % | 5,070 | 1.0 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income |
$ | 7,470 | 2.8 | % | $ | 8,369 | 3.5 | % | $ | 1,145 | 0.2 | % | $ | 16,477 | 3.5 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement Quarterly Trend |
||||||||||||||||||||||||||||
In thousands, except per share amounts |
2Q 19 |
3Q 19 |
4Q 19 |
1Q 20 |
2Q 20 |
QoQ $ B(W) |
YoY $ B(W) |
|||||||||||||||||||||
Revenue |
||||||||||||||||||||||||||||
Interest and fee income |
$ | 75,974 | $ | 83,089 | $ | 87,784 | $ | 86,997 | $ | 80,067 | $ | (6,930 | ) | $ | 4,093 | |||||||||||||
Insurance income, net |
5,066 | 5,087 | 6,551 | 5,949 | 7,650 | 1,701 | 2,584 | |||||||||||||||||||||
Other income |
3,234 | 3,531 | 3,649 | 3,128 | 2,133 | (995 | ) | (1,101 | ) | |||||||||||||||||||
|
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|
|
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|
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|
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|
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|
|
|
|||||||||||||||
Total revenue |
84,274 | 91,707 | 97,984 | 96,074 | 89,850 | (6,224 | ) | 5,576 | ||||||||||||||||||||
|
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|
|
|
|
|
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|
|
|
|
|
|||||||||||||||
Expenses |
||||||||||||||||||||||||||||
Provision for credit losses |
25,714 | 24,515 | 26,039 | 49,522 | 27,499 | 22,023 | (1,785 | ) | ||||||||||||||||||||
Personnel |
22,511 | 23,791 | 25,305 | 29,511 | 26,863 | 2,648 | (4,352 | ) | ||||||||||||||||||||
Occupancy |
6,210 | 6,367 | 5,876 | 5,771 | 6,253 | (482 | ) | (43 | ) | |||||||||||||||||||
Marketing |
2,261 | 2,397 | 1,897 | 1,686 | 1,438 | 248 | 823 | |||||||||||||||||||||
Other |
6,761 | 7,612 | 7,813 | 9,275 | 6,971 | 2,304 | (210 | ) | ||||||||||||||||||||
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|
|
|
|||||||||||||||
Total general and administrative |
37,743 | 40,167 | 40,891 | 46,243 | 41,525 | 4,718 | (3,782 | ) | ||||||||||||||||||||
Interest expense |
9,771 | 10,348 | 10,285 | 10,159 | 9,137 | 1,022 | 634 | |||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income (loss) before income taxes |
11,046 | 16,677 | 20,769 | (9,850 | ) | 11,689 | 21,539 | 643 | ||||||||||||||||||||
Income taxes |
2,677 | 4,105 | 5,086 | (3,525 | ) | 4,219 | (7,744 | ) | (1,542 | ) | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income (loss) |
$ | 8,369 | $ | 12,572 | $ | 15,683 | $ | (6,325 | ) | $ | 7,470 | $ | 13,795 | $ | (899 | ) | ||||||||||||
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|
|
|
|||||||||||||||
Net income (loss) per common share: |
||||||||||||||||||||||||||||
Basic |
$ | 0.71 | $ | 1.11 | $ | 1.44 | $ | (0.58 | ) | $ | 0.68 | $ | 1.26 | $ | (0.03 | ) | ||||||||||||
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|
|||||||||||||||
Diluted |
$ | 0.70 | $ | 1.08 | $ | 1.38 | $ | (0.56 | ) | $ | 0.68 | $ | 1.24 | $ | (0.02 | ) | ||||||||||||
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|
|
|
|||||||||||||||
Weighted-average shares outstanding: |
||||||||||||||||||||||||||||
Basic |
11,706 | 11,302 | 10,893 | 10,897 | 10,962 | (65 | ) | 744 | ||||||||||||||||||||
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|
|||||||||||||||
Diluted |
12,022 | 11,677 | 11,327 | 11,253 | 11,013 | 240 | 1,009 | |||||||||||||||||||||
|
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|
|
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|
|
|
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|
|
|
|
|
|||||||||||||||
Net interest margin |
$ | 74,503 | $ | 81,359 | $ | 87,699 | $ | 85,915 | $ | 80,713 | $ | (5,202 | ) | $ | 6,210 | |||||||||||||
|
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|
|
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|
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|
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|
|
|
|
|
|||||||||||||||
Net credit margin |
$ | 48,789 | $ | 56,844 | $ | 61,660 | $ | 36,393 | $ | 53,214 | $ | 16,821 | $ | 4,425 | ||||||||||||||
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|
|
|
|
|
|
|
|
|
|
Balance Sheet Quarterly Trend |
||||||||||||||||||||||||||||
In thousands |
2Q 19 |
3Q 19 |
4Q 19 |
1Q 20 |
2Q 20 |
QoQ $ Inc (Dec) |
YoY $ Inc (Dec) |
|||||||||||||||||||||
Total assets |
$ | 1,019,316 | $ | 1,086,172 | $ | 1,158,540 | $ | 1,078,890 | $ | 1,000,225 | $ | (78,665 | ) | $ | (19,091 | ) | ||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net finance receivables |
$ | 994,980 | $ | 1,067,086 | $ | 1,133,404 | $ | 1,102,285 | $ | 1,022,635 | $ | (79,650 | ) | $ | 27,655 | |||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Allowance for credit losses |
$ | 57,200 | $ | 60,900 | $ | 62,200 | $ | 142,400 | $ | 142,000 | $ | (400 | ) | $ | 84,800 | |||||||||||||
|
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|
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|
|
|
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|
|
|||||||||||||||
Long-term debt |
$ | 689,310 | $ | 743,835 | $ | 808,218 | $ | 777,847 | $ | 683,865 | $ | (93,982 | ) | $ | (5,445 | ) | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
Other Key Metrics Quarterly Trend |
||||||||||||||||||||||||||||
2Q 19 |
3Q 19 |
4Q 19 |
1Q 20 |
2Q 20 |
QoQ Inc (Dec) |
YoY Inc (Dec) |
||||||||||||||||||||||
Interest and fee yield (annualized) |
31.8 | % | 32.1 | % | 32.0 | % | 31.0 | % | 30.5 | % | (0.5 | )% | (1.3 | )% | ||||||||||||||
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|
|
|
|
|
|
|||||||||||||||
Efficiency ratio (1) |
44.8 | % | 43.8 | % | 41.7 | % | 48.1 | % | 46.2 | % | (1.9 | )% | 1.4 | % | ||||||||||||||
|
|
|
|
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|
|
|
|
|
|
|
|
|||||||||||||||
Operating expense ratio (2) |
15.8 | % | 15.5 | % | 14.9 | % | 16.5 | % | 15.8 | % | (0.7 | )% | 0.0 | % | ||||||||||||||
|
|
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|
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|
|
|
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|
|
|
|||||||||||||||
30+ contractual delinquency |
6.3 | % | 6.5 | % | 7.0 | % | 6.6 | % | 4.8 | % | (1.8 | )% | (1.5 | )% | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net credit loss ratio (3) |
10.4 | % | 8.1 | % | 9.0 | % | 10.5 | % | 10.6 | % | 0.1 | % | 0.2 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Book value per share |
$ | 24.88 | $ | 26.00 | $ | 27.49 | $ | 22.49 | $ | 23.11 | $ | 0.62 | $ | (1.77 | ) | |||||||||||||
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|
|
|
|
|
|
|
|
|
|
• | Small Loans ( £ $2,500) stay-at-home |
• | Large Loans (>$2,500) COVID-19. |
• | Automobile Loans |
• | Retail Loans |
Net Finance Receivables by Product |
||||||||||||||||||||||||||||
In thousands |
2Q 20 |
1Q 20 |
QoQ $ Inc (Dec) |
QoQ % Inc (Dec) |
2Q 19 |
YoY $ Inc (Dec) |
YoY % Inc (Dec) |
|||||||||||||||||||||
Small loans |
$ | 380,083 | $ | 440,282 | $ | (60,199 | ) | (13.7 | )% | $ | 435,467 | $ | (55,384 | ) | (12.7 | )% | ||||||||||||
Large loans |
618,134 | 632,593 | (14,459 | ) | (2.3 | )% | 516,019 | 102,115 | 19.8 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total core loans |
998,217 | 1,072,875 | (74,658 | ) | (7.0 | )% | 951,486 | 46,731 | 4.9 | % | ||||||||||||||||||
Automobile loans |
6,059 | 7,532 | (1,473 | ) | (19.6 | )% | 15,717 | (9,658 | ) | (61.4 | )% | |||||||||||||||||
Retail loans |
18,359 | 21,878 | (3,519 | ) | (16.1 | )% | 27,777 | (9,418 | ) | (33.9 | )% | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total net finance receivables |
$ | 1,022,635 | $ | 1,102,285 | $ | (79,650 | ) | (7.2 | )% | $ | 994,980 | $ | 27,655 | 2.8 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Number of branches at period end |
368 | 368 | — | 0.0 | % | 356 | 12 | 3.4 | % | |||||||||||||||||||
Average net finance receivables per branch |
$ | 2,779 | $ | 2,995 | $ | (216 | ) | (7.2 | )% | $ | 2,795 | $ | (16 | ) | (0.6 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Net Finance Receivables for the Quarter Ended |
Average Yields for the Quarter Ended |
|||||||||||||||||||||||
In thousands |
2Q 20 |
2Q 19 |
YoY % Inc (Dec) |
2Q 20 |
2Q 19 |
YoY Inc (Dec) |
||||||||||||||||||
Small loans |
$ | 404,019 | $ | 423,699 | (4.6 | )% | 36.2 | % | 38.2 | % | (2.0 | )% | ||||||||||||
Large loans |
618,860 | 484,483 | 27.7 | % | 27.3 | % | 27.7 | % | (0.4 | )% | ||||||||||||||
Automobile loans |
6,820 | 17,972 | (62.1 | )% | 14.8 | % | 14.6 | % | 0.2 | % | ||||||||||||||
Retail loans |
20,114 | 28,786 | (30.1 | )% | 18.0 | % | 18.8 | % | (0.8 | )% | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest and fee yield |
$ | 1,049,813 | $ | 954,940 | 9.9 | % | 30.5 | % | 31.8 | % | (1.3 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2020 Net Loans Origination Trend |
||||||||||||||||||||||||||||
In thousands |
January |
February |
March |
April |
May |
June |
July |
|||||||||||||||||||||
Net loans originated |
$ | 76,222 | $ | 77,151 | $ | 75,872 | $ | 35,311 | $ | 57,870 | $ | 78,971 | $ | 92,895 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Year-over-year change |
(0.2 | )% | 12.0 | % | 2.1 | % | (64.8 | )% | (57.7 | )% | (29.5 | )% | (26.9 | )% | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loans Originated |
||||||||||||||||||||||||||||
In thousands |
2Q 20 |
1Q 20 |
QoQ $ Inc (Dec) |
QoQ % Inc (Dec) |
2Q 19 |
YoY $ Inc (Dec) |
YoY % Inc (Dec) |
|||||||||||||||||||||
Small loans |
$ | 79,265 | $ | 120,024 | $ | (40,759 | ) | (34.0 | )% | $ | 174,440 | $ | (95,175 | ) | (54.6 | )% | ||||||||||||
Large loans |
90,980 | 105,648 | (14,668 | ) | (13.9 | )% | 169,373 | (78,393 | ) | (46.3 | )% | |||||||||||||||||
Retail loans |
1,907 | 3,573 | (1,666 | ) | (46.6 | )% | 5,179 | (3,272 | ) | (63.2 | )% | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total net loans originated |
$ | 172,152 | $ | 229,245 | $ | (57,093 | ) | (24.9 | )% | $ | 348,992 | $ | (176,840 | ) | (50.7 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Increase in Interest and Fee Income 2Q 20 Compared to 2Q 19 Increase (Decrease) |
||||||||||||||||
In thousands |
Volume |
Rate |
Volume & Rate |
Net |
||||||||||||
Small loans |
$ | (1,879 | ) | $ | (2,055 | ) | $ | 96 | $ | (3,838 | ) | |||||
Large loans |
9,297 | (403 | ) | (112 | ) | 8,782 | ||||||||||
Automobile loans |
(406 | ) | 12 | (8 | ) | (402 | ) | |||||||||
Retail loans |
(409 | ) | (58 | ) | 18 | (449 | ) | |||||||||
Product mix |
945 | (639 | ) | (306 | ) | — | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total increase in interest and fee income |
$ | 7,548 | $ | (3,143 | ) | $ | (312 | ) | $ | 4,093 | ||||||
|
|
|
|
|
|
|
|
Insurance Premiums and Direct Expenses for the Quarter Ended |
||||||||||||||||
In thousands |
2Q 20 |
2Q 19 |
YoY $ B(W) |
YoY% B(W) |
||||||||||||
Earned premiums |
$ | 10,145 | $ | 8,345 | $ | 1,800 | 21.6 | % | ||||||||
Claims, reserves, and certain direct expenses |
(2,495 | ) | (3,279 | ) | 784 | 23.9 | % | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Insurance income, net |
$ | 7,650 | $ | 5,066 | $ | 2,584 | 51.0 | % | ||||||||
|
|
|
|
|
|
|
|
Allowance for Credit Losses 2Q 20 |
||||||||
In thousands |
$ |
% |
||||||
Beginning balance |
$ | 142,400 | 12.9 | % | ||||
Reserve build for COVID-19 |
9,500 | |||||||
Reserve release for portfolio liquidation |
(9,900 | ) | ||||||
|
|
|
|
|||||
Ending balance |
$ | 142,000 | 13.9 | % | ||||
|
|
|
|
2020 Delinquency and Borrower Assistance Trend |
||||||||||||||||||||||||||||
In thousands |
January |
February |
March |
April |
May |
June |
July |
|||||||||||||||||||||
30+ day delinquency |
$ | 84,545 | $ | 79,480 | $ | 72,357 | $ | 57,311 | $ | 51,472 | $ | 49,535 | $ | 46,320 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
30+ day delinquency |
7.5 | % | 7.1 | % | 6.6 | % | 5.4 | % | 5.0 | % | 4.8 | % | 4.5 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Borrower assistance program usage (1) |
2.3 | % | 2.2 | % | 2.3 | % | 5.8 | % | 3.1 | % | 2.3 | % | 2.1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Percentage of customer accounts that utilized borrower assistance programs during the month. |
Contractual Delinquency by Aging |
||||||||||||||||
In thousands |
2Q 20 |
2Q 19 |
||||||||||||||
Current |
$ | 896,928 | 87.8 | % | $ | 825,726 | 83.0 | % | ||||||||
1 to 29 days past due |
76,172 | 7.4 | % | 106,708 | 10.7 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Delinquent accounts: |
||||||||||||||||
30 to 59 days |
15,277 | 1.4 | % | 22,207 | 2.3 | % | ||||||||||
60 to 89 days |
9,764 | 1.0 | % | 14,039 | 1.4 | % | ||||||||||
90 to 119 days |
7,014 | 0.7 | % | 10,018 | 1.0 | % | ||||||||||
120 to 149 days |
8,081 | 0.8 | % | 8,128 | 0.8 | % | ||||||||||
150 to 179 days |
9,399 | 0.9 | % | 8,154 | 0.8 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total contractual delinquency |
$ | 49,535 | 4.8 | % | $ | 62,546 | 6.3 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net finance receivables |
$ | 1,022,635 | 100.0 | % | $ | 994,980 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
Contractual Delinquency by Product |
||||||||||||||||
In thousands |
2Q 20 |
2Q 19 |
||||||||||||||
Small loans |
$ | 24,465 | 6.4 | % | $ | 33,368 | 7.7 | % | ||||||||
Large loans |
23,660 | 3.8 | % | 25,699 | 5.0 | % | ||||||||||
Automobile loans |
291 | 4.8 | % | 1,294 | 8.2 | % | ||||||||||
Retail loans |
1,119 | 6.1 | % | 2,185 | 7.9 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total contractual delinquency |
$ | 49,535 | 4.8 | % | $ | 62,546 | 6.3 | % | ||||||||
|
|
|
|
|
|
|
|
Average Net Finance Receivables for the Six Months Ended |
Average Yields for the Six Months Ended |
|||||||||||||||||||||||
In thousands |
YTD 20 |
YTD 19 |
YoY % Inc (Dec) |
YTD 20 |
YTD 19 |
YoY % Inc (Dec) |
||||||||||||||||||
Small loans |
$ | 431,076 | $ | 431,253 | 0.0 | % | 36.5 | % | 38.0 | % | (1.5 | )% | ||||||||||||
Large loans |
626,185 | 468,600 | 33.6 | % | 27.4 | % | 27.4 | % | 0.0 | % | ||||||||||||||
Automobile loans |
7,719 | 20,611 | (62.5 | )% | 14.1 | % | 14.7 | % | (0.6 | )% | ||||||||||||||
Retail loans |
21,585 | 29,415 | (26.6 | )% | 17.9 | % | 18.7 | % | (0.8 | )% | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest and fee yield |
$ | 1,086,565 | $ | 949,879 | 14.4 | % | 30.8 | % | 31.6 | % | (0.8 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2020 Net Loans Origination Trend |
||||||||||||||||||||||||||||
In thousands |
January |
February |
March |
April |
May |
June |
July |
|||||||||||||||||||||
Net loans originated |
$ | 76,222 | $ | 77,151 | $ | 75,872 | $ | 35,311 | $ | 57,870 | $ | 78,971 | $ | 92,895 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Year-over-year change |
(0.2 | )% | 12.0 | % | 2.1 | % | (64.8 | )% | (57.7 | )% | (29.5 | )% | (26.9 | )% | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loans Originated |
||||||||||||||||
In thousands |
YTD 20 |
YTD 19 |
YTD $ Inc (Dec) |
YTD% Inc (Dec) |
||||||||||||
Small loans |
$ | 199,289 | $ | 303,685 | $ | (104,396 | ) | (34.4 | )% | |||||||
Large loans |
196,628 | 253,441 | (56,813 | ) | (22.4 | )% | ||||||||||
Retail loans |
5,480 | 11,376 | (5,896 | ) | (51.8 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net loans originated |
$ | 401,397 | $ | 568,502 | $ | (167,105 | ) | (29.4 | )% | |||||||
|
|
|
|
|
|
|
|
Components of Increase in Interest and Fee Income YTD 20 Compared to YTD 19 Increase (Decrease) |
||||||||||||||||
In thousands |
Volume |
Rate |
Volume & Rate |
Net |
||||||||||||
Small loans |
$ | (34 | ) | $ | (3,163 | ) | $ | 2 | $ | (3,195 | ) | |||||
Large loans |
21,580 | 129 | 43 | 21,752 | ||||||||||||
Automobile loans |
(949 | ) | (64 | ) | 40 | (973 | ) | |||||||||
Retail loans |
(733 | ) | (114 | ) | 31 | (816 | ) | |||||||||
Product mix |
1,763 | (1,036 | ) | (727 | ) | — | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total increase in interest and fee income |
$ | 21,627 | $ | (4,248 | ) | $ | (611 | ) | $ | 16,768 | ||||||
|
|
|
|
|
|
|
|
Insurance Premiums and Direct Expenses |
||||||||||||||||
In thousands |
YTD 20 |
YTD 19 |
YoY $ B(W) |
YoY% B(W) |
||||||||||||
Earned premiums |
$ | 20,665 | $ | 16,294 | $ | 4,371 | 26.8 | % | ||||||||
Claims, reserves, and certain direct expenses |
(7,066 | ) | (7,115 | ) | 49 | 0.7 | % | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Insurance income, net |
$ | 13,599 | $ | 9,179 | $ | 4,420 | 48.2 | % | ||||||||
|
|
|
|
|
|
|
|
Allowance for Credit Losses YTD 20 |
||||||||
In thousands |
$ |
% |
||||||
|
|
|
|
|||||
Pre-CECL adoption |
$ | 62,200 | 5.5 | % | ||||
Impact of adoption |
60,100 | 5.3 | % | |||||
|
|
|
|
|||||
Post-CECL adoption |
122,300 | 10.8 | % | |||||
Reserve build for COVID-19 |
33,400 | |||||||
Reserve release for portfolio liquidation |
(13,700 | ) | ||||||
|
|
|
|
|||||
Ending balance |
$ | 142,000 | 13.9 | % | ||||
|
|
|
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
ITEM 4. |
CONTROLS AND PROCEDURES. |
ITEM 1. |
LEGAL PROCEEDINGS. |
ITEM 1A. |
RISK FACTORS. |
ITEM 6. |
EXHIBITS. |
Incorporated by Reference |
||||||||||||||||||||||
Exhibit Number |
Exhibit Description |
Filed Herewith |
Form |
File Number |
Exhibit |
Filing Date |
||||||||||||||||
10.1 | Consulting Agreement dated April 13, 2020 between Daniel J. Taggart and Regional Management Corp. | 8-K |
001-35477 |
10.1 | 4/15/20 | |||||||||||||||||
10.2 | Summary of Non-Employee Director Compensation Program | X | ||||||||||||||||||||
31.1 | Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Executive Officer | X | ||||||||||||||||||||
31.2 | Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Financial Officer | X | ||||||||||||||||||||
32.1 | Section 1350 Certifications | X | ||||||||||||||||||||
101.INS | XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||||||||||
104 | Cover Page Interactive Data File—the cover page XBRL tags are embedded within the Inline XBRL document contained in Exhibit 101 |
REGIONAL MANAGEMENT CORP. | ||||||
Date: August 7, 2020 | By: | /s/ Michael S. Dymski | ||||
Michael S. Dymski, Vice President, Interim Chief Financial Officer, and Chief Accounting Officer | ||||||
(Principal Financial Officer, Principal Accounting Officer, and Duly Authorized Officer) |
EXHIBIT 10.2
Description of Non-Employee Director Compensation Program
Regional Management Corp. (the Company) maintains a non-employee director compensation program pursuant to which, effective May 21, 2020:
| each non-employee director receives an annual cash retainer of $70,000 payable in quarterly installments ($95,000 in the case of the chair or lead independent director of the Board of Directors); |
| each member of the Audit Committee, Compensation Committee, Corporate Governance and Nominating Committee, and Risk Committee receives an additional annual cash retainer of $8,750 payable in quarterly installments ($17,500 in the case of the chair of each committee); |
| each non-employee director receives on an annual basis shares of restricted common stock of the Company with a value equal to $90,000 ($115,000 in the case of the chair or lead independent director of the Board of Directors); and |
| each member of the Audit Committee, Compensation Committee, Corporate Governance and Nominating Committee, and Risk Committee receives on an annual basis additional shares of restricted common stock of the Company with a value equal to $8,750 ($17,500 in the case of the chair of each committee). |
The restricted stock awards are granted on the fifth business day following the date of the annual stockholders meeting at which directors are elected. The number of shares subject to each restricted stock award is determined by dividing the value of the award by the closing price per share of common stock on the grant date. Notwithstanding the foregoing, the number of shares subject to each restricted stock award granted in 2020 will be determined by dividing the value of the award by the weighted average of the price per share of common stock on the 25 days immediately preceding the date of grant. The restricted stock award vests and becomes non-forfeitable as to 100% of the underlying shares on the earlier of the first anniversary of the grant date or the date of the next annual stockholders meeting, subject to the directors continued service from the grant date until the vesting date, or upon the earlier occurrence of the directors termination of service as a director by reason of death or disability or upon a change in control of the Company. In the event of the directors termination of service for any other reason, the director forfeits the restricted stock award immediately. The restricted stock award is subject to the terms and conditions of the Regional Management Corp. 2015 Long-Term Incentive Plan, as amended and restated, and a restricted stock award agreement, the form of which was previously approved by the Compensation Committee and the Board of Directors and filed with the Securities and Exchange Commission.
Non-employee directors are entitled to reimbursement for (i) travel and other out-of-pocket expenses incidental to attending Board meetings and other Board-related business events and (ii) reasonable expenses relating to director education.
EXHIBIT 31.1
CERTIFICATION
I, Robert W. Beck, certify that:
(1) | I have reviewed this Quarterly Report on Form 10-Q of Regional Management Corp.; |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
(5) | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 7, 2020 | /s/ Robert W. Beck | |||
Robert W. Beck | ||||
President and Chief Executive Officer |
EXHIBIT 31.2
CERTIFICATION
I, Michael S. Dymski, certify that:
(1) | I have reviewed this Quarterly Report on Form 10-Q of Regional Management Corp.; |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
(5) | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 7, 2020 | /s/ Michael S. Dymski | |||
Michael S. Dymski | ||||
Vice President, Interim Chief Financial Officer and Chief Accounting Officer |
EXHIBIT 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned hereby certifies that to his knowledge: (i) the Quarterly Report on Form 10-Q of Regional Management Corp. (the Company) for the quarter ended June 30, 2020 (the Report), as filed with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company on the dates and for the periods presented therein.
Date: August 7, 2020 | /s/ Robert W. Beck | |||
Robert W. Beck | ||||
President and Chief Executive Officer |
Date: August 7, 2020 | /s/ Michael S. Dymski | |||
Michael S. Dymski | ||||
Vice President, Interim Chief Financial Officer and Chief Accounting Officer |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 13,727 | 13,497 |
Common stock, shares outstanding | 11,243 | 11,013 |
Treasury stock, shares | 2,484 | 2,484 |
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Revenue | ||||
Interest and fee income | $ 80,067 | $ 75,974 | $ 167,064 | $ 150,296 |
Insurance income, net | 7,650 | 5,066 | 13,599 | 9,179 |
Other income | 2,133 | 3,234 | 5,261 | 6,547 |
Total revenue | 89,850 | 84,274 | 185,924 | 166,022 |
Expenses | ||||
Provision for credit losses | 27,499 | 25,714 | 77,021 | 49,057 |
Personnel | 26,863 | 22,511 | 56,374 | 44,904 |
Occupancy | 6,253 | 6,210 | 12,024 | 12,375 |
Marketing | 1,438 | 2,261 | 3,124 | 3,912 |
Other | 6,971 | 6,761 | 16,246 | 14,735 |
Total general and administrative expenses | 41,525 | 37,743 | 87,768 | 75,926 |
Interest expense | 9,137 | 9,771 | 19,296 | 19,492 |
Income before income taxes | 11,689 | 11,046 | 1,839 | 21,547 |
Income taxes | 4,219 | 2,677 | 694 | 5,070 |
Net income | $ 7,470 | $ 8,369 | $ 1,145 | $ 16,477 |
Net income per common share: | ||||
Basic | $ 0.68 | $ 0.71 | $ 0.10 | $ 1.41 |
Diluted | $ 0.68 | $ 0.70 | $ 0.10 | $ 1.37 |
Weighted-average shares outstanding: | ||||
Basic | 10,962 | 11,706 | 10,929 | 11,709 |
Diluted | 11,013 | 12,022 | 11,130 | 12,049 |
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|
Statement of Cash Flows [Abstract] | ||||
Cash | $ 8,973 | $ 2,263 | $ 694 | $ 3,657 |
Restricted cash | 54,423 | 54,164 | 41,803 | 46,484 |
Total cash and restricted cash | $ 63,396 | $ 56,427 | $ 42,497 | $ 50,141 |
Nature of Business |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Note 1. Nature of Business Regional Management Corp. (the “ Company ”) was incorporated and began operations in 1987. The Company is engaged in the consumer finance business, offering small loans, large loans, retail loans, and related payment and collateral protection insurance products. The Company previously offered automobile loans, but it ceased such originations in November 2017. As of June 30, 2020, the Company operated under the name “Regional Finance” in 368 branch locations across 11 states in the Southeastern, Southwestern, Mid-Atlantic, and Midwestern United States.The Company’s loan volume and contractual delinquency follow seasonal trends. Demand for the Company’s small and large loans is typically highest during the second, third, and fourth quarters, which the Company believes is largely due to customers borrowing money for vacation, back-to-school, and CECL ”) accounting model requires earlier recognition of credit losses compared to the prior incurred loss approach. This could result in larger allowance for credit loss releases in periods of portfolio liquidation, and larger provisions for credit losses in periods of portfolio growth compared to prior years. Consequently, the Company experiences seasonal fluctuations in its operating results and cash needs. However, the decrease in loan originations and increase in borrower assistance programs related to the novel strain of coronavirus (“COVID-19 |
Basis of Presentation and Significant Accounting Policies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Significant Accounting Policies | Note 2. Basis of Presentation and Significant Accounting Policies Basis of presentation: 10-Q adopted by the Securities and Exchange Commission (the “SEC ”) and generally accepted accounting principles in the United States of America (“GAAP ”) for interim financial information and, accordingly, do not include all information and note disclosures required by GAAP for complete financial statements. The interim financial statements in this Quarterly Report on Form 10-Q have not been audited by an independent registered public accounting firm in accordance with standards of the Public Company Accounting Oversight Board (United States), but in the opinion of management, the interim financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows in accordance with GAAP. These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the SEC.Significant accounting policies: Principles of consolidation: VIE ”) when it is considered to be the primary beneficiary of the VIE because it has (i) power over the significant activities of the VIE and (ii) the obligation to absorb losses or the right to receive returns that could be significant to the VIE.Variable interest entities: SPE ”) to secure debt for general funding purposes. These entities have the limited purpose of acquiring finance receivables and holding and making payments on the related debts. Assets transferred to each SPE are legally isolated from the Company and its affiliates, as well as the claims of the Company’s and its affiliates’ creditors. Further, the assets of each SPE are owned by such SPE and are not available to satisfy the debts or other obligations of the Company or any of its affiliates. The Company continues to service the finance receivables transferred to the SPEs. The lenders and investors in the debt issued by the SPEs generally only have recourse to the assets of the SPEs and do not have recourse to the general credit of the Company.The SPEs’ debt arrangements are structured to provide enhancements to the lenders and investors in the form of overcollateralization (the principal balance of the collateral exceeds the balance of the debt) and reserve funds (restricted cash held by the SPEs). These enhancements, along with the isolated finance receivables pools, increase the creditworthiness of the SPEs above that of the Company as a whole. This increases the marketability of the Company’s collateral for borrowing purposes, leading to more favorable borrowing terms, improved interest rate risk management, and additional flexibility to grow the business. The SPEs are considered VIEs under GAAP and are consolidated into the financial statements of their primary beneficiary. The Company is considered to be the primary beneficiary of the SPEs because it has (i) power over the significant activities through its role as servicer of the finance receivables under each debt arrangement and (ii) the obligation to absorb losses or the right to receive returns that could be significant through the Company’s interest in the monthly residual cash flows of the SPEs after each debt is paid. Consolidation of VIEs results in these transactions being accounted for as secured borrowings; therefore, the pooled receivables and the related debts remain on the consolidated balance sheet of the Company. Each debt is secured solely by the assets of the VIEs and not by any other assets of the Company. The assets of the VIEs are the only source of funds for repayment on each debt, and restricted cash held by the VIEs can only be used to support payments on the debt. The Company recognizes revenue and provision for credit losses on the finance receivables of the VIEs and interest expense on the related secured debt. Use of estimates: Material estimates that are particularly susceptible to change relate to the determination of the allowance for credit losses, the fair value of share-based compensation, the valuation of deferred tax assets and liabilities, contingent liabilities on litigation matters, and the fair value of financial instruments. Reclassifications: Net finance receivables: non-essential household goods and, in some instances, an automobile. Convenience checks are direct loans originated by mailing checks to customers based on a pre-screening process that includes a review of the prospective customer’s credit profile provided by national credit reporting bureaus or data aggregators. A recipient of a convenience check is able to enter into a loan by endorsing and depositing or cashing the check. Large loan receivables are direct loans to customers, some of which are convenience check receivables and the vast majority of which are secured by non-essential household goods, automobiles, and/or other vehicles. Retail loan receivables consist principally of retail installment sales contracts collateralized by the purchased furniture, appliances, and other retail items, and are initiated by and purchased from retailers, subject to the Company’s credit approval. Automobile loan receivables consist of direct automobile purchase loans, which were originated at the dealership and closed in one of the Company’s branches, and indirect automobile purchase loans, which were originated and closed at a dealership in the Company’s network without the need for the customer to visit one of the Company’s branches. In each case, these automobile loans are collateralized primarily by the purchased automobiles and, in the case of indirect loans, were initiated by and purchased from automobile dealerships, subject to the Company’s credit approval. The Company ceased originating automobile loans in November 2017.Prior to January 1, 2020, net finance receivables included the customer’s unpaid principal balance (“ UPB ”), accrued interest on interest-bearing accounts, unamortized deferred origination fees and costs, and unearned insurance premiums. The UPB consisted of the unpaid principal balance on interest-bearing accounts and the remaining contractual payments less the unearned amount of pre-computed interest for pre-compute accounts.Effective January 1, 2020, with the adoption of CECL accounting, the Company reclassified unearned insurance premiums out of net finance receivables to align its consolidated balance sheet presentation with the amortized cost definition in the new accounting standard. See Note 3, “Finance Receivables, Credit Quality Information, and Allowance for Credit Losses” for further information about the Company’s reclassification of unearned insurance premiums. Allowance for credit losses: FASB ”) issued an accounting update in June 2016 to change the impairment model for estimating credit losses on financial assets. The previous incurred loss impairment model required the recognition of credit losses when it was probable that a loss had been incurred. The incurred loss model was replaced by the CECL model, which requires entities to estimate the lifetime expected credit loss on financial instruments and to record an allowance to offset the amortized cost basis of the financial asset. The CECL model requires earlier recognition of credit losses as compared to the incurred loss approach. The Company adopted this standard effective January 1, 2020.The allowance for credit losses is based on historical credit experience, current conditions, and reasonable and supportable economic forecasts. The historical loss experience is adjusted for quantitative and qualitative factors that are not fully reflected in the historical data. In determining its estimate of expected credit losses, the Company evaluates information related to credit metrics, changes in its lending strategies and underwriting practices, and the current and forecasted direction of the economic and business environment. These metrics include, but are not limited to, loan portfolio mix and growth, unemployment, credit loss trends, delinquency trends, changes in underwriting, and operational risks. The Company selected a static pool Probability of Default (“ PD ”) / Loss Given Default (“LGD ”) model to estimate its base allowance for credit losses, in which the estimated loss is equal to the product of PD and LGD. Historical static pools of net finance receivables are tracked over the term of the pools to identify the incidences of loss (PDs) and the average severity of losses (LGDs).To enhance the precision of the allowance for credit loss estimate, the Company evaluates its finance receivable portfolio on a pool basis and segments each pool of finance receivables with similar credit risk characteristics. As part of its evaluation, the Company considers portfolio characteristics such as product type, loan size, loan term, internal or external credit scores, delinquency status, geographical location, and vintage. Based on analysis of historical loss experience, the Company selected the following segmentation: product type, Fair Isaac Corporation (“ FICO ”) score, and delinquency status. The Company accounts for certain finance receivables that have been modified by bankruptcy proceedings or company loss mitigation policies using a discounted cash flows approach to properly reserve for customer concessions (rate reductions and term extensions). As finance receivables are originated, provisions for credit losses are recorded in amounts sufficient to maintain an allowance for credit losses at an adequate level to provide for estimated losses over the contractual term of the finance receivables. Subsequent changes to the contractual terms that are a result of re-underwriting are not included in the finance receivable’s expected life. The Company uses its segmentation loss experience to forecast expected credit losses. Historical information about losses generally provides a basis for the estimate of expected credit losses. The Company also considers the need to adjust historical information to reflect the extent to which current conditions differ from the conditions that existed for the period over which historical information was evaluated. These adjustments to historical loss information may be qualitative or quantitative in nature.Reasonable and supportable macroeconomic forecasts are required for the Company’s allowance for credit loss model. The Company engaged a major rating service to assist with compiling a reasonable and supportable forecast. The Company reviews macroeconomic forecasts to use in its allowance for credit losses. The Company adjusts the historical loss experience by relevant qualitative factors for these expectations. The Company does not require reversion adjustments, as the expected lives of its portfolio are shorter than its available forecast periods. The Company charges credit losses against the allowance when the account reaches 180 days contractually delinquent, subject to certain exceptions. The Company’s non-titled customer accounts in a confirmed bankruptcy are charged off in the month following the bankruptcy notification or at 60 days contractually delinquent, subject to certain exceptions. Deceased borrower accounts are charged off in the month following the proper notification of passing, with the exception of borrowers with credit life insurance. Subsequent recoveries of amounts charged off, if any, are credited to the allowance.Nonaccrual status: charge-off policies that result in the timely suspension and reversal of accrued interest.Recent accounting pronouncements: As a result of the adoption of the new credit loss standard on January 1, 2020, through a modified-retrospective approach, the Company recorded an increase to the allowance for credit losses of $60.1 million and a one-time, cumulative reduction to retained earnings of $45.9 million (net of $14.2 million in taxes). The Company’s allowance for credit losses increased from 5.5% to 10.8% as a percentage of the amortized cost basis on January 1, 2020. The CECL accounting adoption did not result in any changes in the cash flows of the financial assets, did not cause the Company to violate any of its existing debt covenants, and did not inhibit the Company in funding its growth or returningcapital to its stockholders. The following table illustrates the impact of the CECL accounting adoption by product:
In August 2018, the FASB issued an accounting update to provide additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. The amendments aligned the capitalization requirements for hosting arrangements that are service contracts with the capitalization principles for internal-use software. This update was effective for annual and interim periods beginning after December 15, 2019, and early adoption was permitted. The Company adopted and applied the update on a prospective basis. The adoption did not have a material impact on its financial statements. |
Finance Receivables, Credit Quality Information, and Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Receivables, Credit Quality Information, and Allowance for Credit Losses | Note 3. Finance Receivables, Credit Quality Information, and Allowance for Credit Losses Net finance receivables for the periods indicated consisted of the following:
Net finance receivables included net deferred origination fees of $10.1 million and $13.4 million as of June 30, 2020 and December 31, 2019, respectively. Effective January 1, 2020, with the adoption of CECL accounting, the Company reclassified unearned insurance premiums out of the net finance receivables line item to align its consolidated balance sheet presentation with the amortized cost definition in the new accounting standard. The tables below illustrate the impacts of this reclassification to the Company’s previously reported balance sheet presentation of receivables and other key metrics:
The credit quality of the Company’s finance receivable portfolio is the result of the Company’s ability to enforce sound underwriting standards, maintain diligent servicing of the portfolio, and respond to changing economic conditions as it grows its portfolio. The allowance for credit losses uses FICO scores and delinquency as key data points in estimating the allowance. The Company uses six FICO band categories to assess the FICO scores. The first FICO band category includes the lowest FICO scores, while the sixth FICO band category includes the highest FICO scores. Net finance receivables by product, FICO band, and origination year as of June 30, 2020 are as follows:
The contractual delinquency of the net finance receivables portfolio by product and aging for the periods indicated are as follows:
The following table illustrates the impacts to the allowance for credit losses for the periods indicated:
The allowance for credit losses was $62.2 million, or 5.5% of net finance receivables, as of December 31, 2019. The Company adopted CECL accounting on January 1, 2020, and increased the allowance for credit losses to $122.3 million, or 10.8% of net finance receivables. In March 2020, the spread of COVID-19 was declared a pandemic by the World Health Organization. Subsequently, the pandemic was declared a national emergency in the United States and the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law. The CARES Act provides a variety of financial aid to a meaningful portion of the Company’s customer base. During the six months ended June 30, 2020, the Company increased the allowance for credit losses by $19.7 million, which included a $33.4 million reserve related to the economic impact of COVID-19, offset by a base reserve release of $13.7 million related to portfolio liquidation. The $0.4 million decrease in the allowance for credit losses during the three months ended June 30, 2020 included an incremental allowance build of $9.5 million related to the economic impact of COVID-19, offset by a base reserve release of $9.9 million related to portfolio liquidation. The ending balance of the allowance for credit losses as a percentage of net finance receivables was % as of June 30, 2020. The Company ran several macroeconomic stress scenarios, and its final forecast included: unemployment peaking at % in its footprint in 2020 and declining to 8.6% by the end of 2021. The severity of the Company’s macro assumptions remained relatively consistent with the first quarter model, and in the second quarter, the Company extended the assumed duration of elevated unemployment levels. The macro scenario was adjusted for the potential benefits of the government stimulus measures and internal borrower assistance programs. The following is a reconciliation of the allowance for credit losses by product for the periods indicated:
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Interest Rate Caps |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Caps | Note 4. Interest Rate Caps The Company has interest rate cap contracts with an aggregate notional principal amount of $300.0 million. Each contract contains a strike rate against the one-month LIBOR (0.16% and 1.76% as of June 30, 2020 and December 31, 2019, respectively). The interest rate caps have maturities of ($200.0 million with 3.50% strike rate) and ($100.0 million with 1.75% strike rate). When the one-month LIBOR exceeds the strike rate, the counterparty reimburses the Company for the excess over the strike rate. No payment is required by the Company or the counterparty when the one-month LIBOR is below the strike rate. The following is a summary of changes in the rate caps:
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Note 5. Long-Term Debt The following is a summary of the Company’s long-term debt as of the periods indicated:
Senior Revolving Credit Facility: one-month LIBOR, with a LIBOR floor of 1.00%, plus a 3.00% margin, increasing to 3.25% when the availability percentage is below 10%. The one-month LIBOR rate was 0.16% and 1.76% at June 30, 2020 and December 31, 2019, respectively. The amended and restated facility provides for a process to transition from LIBOR to a new benchmark. The Company pays an unused line fee between 0.375% and 0.65% based upon the average outstanding balance of the facility.Variable Interest Entity Debt: These long-term debts are supported by the expected cash flows from the underlying collateralized finance receivables. Collections on these finance receivables are remitted to restricted cash collection accounts, which totaled $38.9 million and $39.4 million as of June 30, 2020 and December 31, 2019, respectively. Cash inflows from the finance receivables are distributed to the lenders/investors, the service providers, and/or the residual interest that the Company owns in accordance with a monthly contractual priority of payments. The SPEs pay a servicing fee to the Company, which is eliminated in consolidation. Distributions from the SPEs to the Company are permitted under the debt arrangements. At each sale of receivables from the Company’s affiliates to the SPEs, the Company makes certain representations and warranties about the quality and nature of the collateralized receivables. The debt arrangements require the Company to repurchase the receivables in certain circumstances, including circumstances in which the representations and warranties made by the Company concerning the quality and characteristics of the receivables are inaccurate. Assets transferred to each SPE are legally isolated from the Company and its affiliates, as well as the claims of the Company’s and its affiliates’ creditors. Further, the assets of each SPE are owned by such SPE and are not available to satisfy the debts or other obligations of the Company or any of its affiliates. Revolving Warehouse Credit Facility: RMR II ”), amended the credit agreement that provides for a $125 million revolving warehouse credit facility to RMR II. The amendment extended the date at which the facility converts to an amortizing loan and the termination date to April 2021 and April 2022, respectively. The facility has an accordion provision that allows for the expansion of the facility to $150 million. The debt is secured by finance receivables and other related assets that the Company purchased from its affiliates, which the Company then sold and transferred to RMR II. Advances on the facility are capped at 80% of eligible finance receivables. RMR II held $0.3 million in restricted cash reserves as of June 30, 2020 to satisfy provisions of the credit agreement. Borrowings under the facility bear interest, payable monthly, at a blended rate equal to three-month LIBOR, plus a margin of 2.15% (2.20% prior to the October 2019 amendment). The three-month LIBOR was 0.30% and 1.91% at June 30, 2020 and December 31, 2019, respectively. RMR II pays an unused commitment fee between 0.35% and 0.85% based upon the average daily utilization of the facility.RMIT 2018-1 Securitization:RMR III ”), and its indirect wholly-owned SPE, Regional Management Issuance Trust 2018-1 (“RMIT ”), completed a private offering and sale of $150 million of asset-backed notes. The transaction consisted of the issuance of three classes of fixed-rate asset-backed notes by RMIT 2018-1 2018-1. The asset-backed notes are secured by finance receivables and other related assets that RMR III purchased from the Company, which RMR III then sold and transferred to RMIT 2018-1. The notes had a revolving period through June 2020 and have a final maturity date in July 2027. RMIT 2018-1 held $1.7 million in restricted cash reserves as of June 30, 2020 to satisfy provisions of the transaction documents. Borrowings under the RMIT 2018-1 securitization bear interest, payable monthly, at a weighted-average rate of 3.93%. Prior to maturity in July 2027, the Company may redeem the notes in full, but not in part, at its option on any remaining note payment date. No payments of principal of the notes were made during the revolving period.RMIT 2018-2 Securitization:its wholly-owned SP RMR III, and the Company’s indirect wholly-owned SPE, Regional Management Issuance Trust E , 2018-2 (“RMIT ”), completed a private offering and sale of $130 million of asset-backed notes. The transaction consisted of the issuance of four classes of fixed-rate asset-backed notes by RMIT 2018-2 2018-2. The asset-backed notes are secured by finance receivables and other related assets that RMR III purchased from the Company, which RMR III then sold and transferred to RMIT 2018-2. The notes have a revolving period ending in December 2020, with a final maturity date in January 2028. RMIT 2018-2 held $1.4 million in restricted cash reserves as of June 30, 2020 to satisfy provisions of the transaction documents. Borrowings under the RMIT 2018-2 securitization bear interest, payable monthly, at a weighted-average rate of 4.87%. Prior to maturity in January 2028, the Company may redeem the notes in full, but not in part, at its option on any note payment date on or after the payment date occurring in January 2021. No payments of principal of the notes will be made during the revolving period.RMIT 2019-1 Securitization: , its wholly-owned SP RMR III, and the Company’s indirect wholly-owned SPE, Regional Management Issuance Trust E , 2019-1 (“RMIT ”), completed a private offering and sale of $130 million of asset-backed notes. The transaction consisted of the issuance of three classes of fixed-rate asset-backed notes by RMIT 2019-1 2019-1. The asset-backed notes are secured by finance receivables and other related assets that RMR III purchased from the Company, which RMR III then sold and transferred to RMIT 2019-1. The notes have a revolving period ending in October 2021, with a final maturity date in November 2028. RMIT 2019-1 held $1.4 million in restricted cash reserves as of June 30, 2020 to satisfy provisions of the transaction documents. Borrowings under the RMIT 2019-1 securitization bear interest, payable monthly, at a weighted-average rate of 3.17%. Prior to maturity in November 2028, the Company may redeem the notes in full, but not in part, at its option on any note payment date on or after the payment date occurring in November 2021. No payments of principal of the notes will be made during the revolving period.The carrying amounts of consolidated VIE assets and liabilities are as follows:
The Company’s debt arrangements are subject to certain covenants, including monthly and annual reporting, maintenance of specified interest coverage and debt ratios, restrictions on distributions, limitations on other indebtedness, maintenance of a minimum allowance for credit losses, and certain other restrictions. At June 30, 2020, the Company was in compliance with all debt covenants. |
Disclosure About Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure About Fair Value of Financial Instruments | Note 6. Disclosure About Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and restricted cash: Net finance receivables: Due to the adoption of CECL in January 2020 and the addition of lifetime losses to the allowance for credit losses, the carrying amount of its finance receivable portfolio no longer approximates fair value. The Company determines the fair value of net finance receivables using a discounted cash flows methodology. The application of these methodologies requires the Company to make certain estimates and judgments. These estimates and judgments include, but are not limited to, prepayment rates, default rates, loss severity, and risk-adjusted discount rates. Interest rate caps: Long-term debt: Effective March 2020, the Company estimates the fair value of long-term debt using estimated credit marks based on an index of similar financial instruments (credit facilities) and projected cash flows from the underlying collateralized finance receivables (securitizations), each discounted using a risk-adjusted discount rate. The carrying amount and estimated fair values of the Company’s financial instruments summarized by level are as follows:
Certain of the Company’s assets carried at fair value are classified and disclosed in one of the following three categories: Level 1 – Level 2 – Level 3 – In determining the appropriate levels, the Company performs an analysis of the assets and liabilities that are carried at fair value. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Note 7. Income Taxes The Company records interim provisions for income taxes based on an estimated annual effective tax rate. Due to uncertainty surrounding the impacts of COVID-19, the Company’s effective tax rate may fluctuate during the year based on the Company’s operating results. Income tax expense differed from the amount computed by applying the federal income tax rate to total income before income taxes as a result of the following:
The increase in effective tax rates for the three and six months ended June 30, 2020 compared to the prior year periods was primarily related to the impact of margin tax within the state of Texas that is based on gross income, rather than net income, and non-deductible executive compensation (including executive transition costs) under Internal Revenue Code Section 162(m) that are not correlated to income before taxes. The Company receives a tax benefit or deficiency upon the exercise or vesting of share-based awards based on the difference in fair value of the shares at exercise or vesting compared to the grant date fair value that was recognized as share-based compensation expense. Excess tax benefits or deficiencies are recognized in provision for income taxes and impact the Company’s effective income tax rate. The Company recognized excess tax deficiencies for the three and six months ended June 30, 2020 due to the decrease in the fair value of the shares exercised or vested during those periods. |
Earnings Per Share |
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Earnings Per Share | Note 8. Earnings Per Share The following schedule reconciles the computation of basic and diluted earnings per share for the periods indicated:
Options to purchase 1.0 million and 0.3 million shares of common stock were outstanding during the three and six months ended June 30, 2020 and 2019, respectively, but were not included in the computation of diluted earnings per share because they were anti-dilutive. |
Share-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Note 9. Share-Based Compensation The Company previously adopted the 2007 Management Incentive Plan (the “ 2007 Plan ”) and the 2011 Stock Incentive Plan (the “2011 Plan ”). On April 22, 2015, the stockholders of the Company approved the 2015 Long-Term Incentive Plan (the “2015 Plan ”), and on April 27, 2017, the stockholders of the Company re-approved the 2015 Plan, as amended and restated. As of June 30, 2020, subject to adjustments as provided in the 2015 Plan, the maximum aggregate number of shares of the Company’s common stock that could be issued under the 2015 Plan could not exceed the sum of (i) 1.55 million shares plus (ii) any shares (A) remaining available for the grant of awards as of the 2015 Plan effective date (April 22, 2015) under the 2007 Plan or the 2011 Plan and/or (B) subject to an award granted under the 2007 Plan or the 2011 Plan, which award is forfeited, cancelled, terminated, expires, or lapses without the issuance of shares or pursuant to which such shares are forfeited. As of the effectiveness of the 2015 Plan (April 22, 2015), there were 0.9 million shares available for grant under the 2015 Plan, inclusive of shares previously available for grant under the 2007 Plan and the 2011 Plan that were rolled over to the 2015 Plan. No further grants will be made under the 2007 Plan or the 2011 Plan. However, awards that are outstanding under the 2007 Plan and the 2011 Plan will continue in accordance with their respective terms. As of June 30, 2020, there were 0.6 million shares available for grant under the 2015 Plan.For the three months ended June 30, 2020 and 2019, the Company recorded share-based compensation expense of $1.1 million and $1.2 million, respectively. The Company recorded $2.5 million and $2.2 million in share-based compensation for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, unrecognized share-based compensation expense to be recognized over future periods approximated $7.0 million. This amount will be recognized as expense over a weighted-average period of 2.0 years. Share-based compensation expenses are recognized on a straight-line basis over the requisite service period of the agreement. All share-based compensation is classified as equity awards. The Company allows for the settlement of share-based awards on a net share basis. With net share settlement, the employee does not surrender any cash or shares upon the exercise of stock options or the vesting of stock awards or stock units. Rather, the Company withholds the number of shares with a value equivalent to the option exercise price (for stock options) and the statutory tax withholding (for all share-based awards). Net share settlements have the effect of reducing the number of shares that would have otherwise been issued as a result of exercise or vesting. Long-term incentive program: non-qualified stock options, performance-contingent restricted stock units (“RSUs ”), cash-settled performance units (“CSPUs ”), and restricted stock awards (“RSAs ”) to certain members of senior management under a long-term incentive program (“LTIP ”). The CSPUs are cash incentive awards, and the associated expense is not based on the market price of the Company’s common stock. Recurring annual grants are made at the discretion of the Board. The annual grants are subject to cliff- and graded-vesting, generally concluding at the end of the third calendar year and subject to continued employment or as otherwise provided in the underlying award agreements. The actual value of the RSUs and CSPUs that may be earned can range from 0% to 150% of target based on the percentile ranking of the Company’s compound annual growth rate of net income and net income per share (for the 2018 LTIP and the 2019 LTIP) or the percentile ranking of the Company’s compound annual growth rate of pre-provision net income and pre-provision net income per share (for the 2020 LTIP), in each case compared to a public company peer group over a three-year performance period.The Company also has a key team member incentive program for certain other members of senior management. Recurring annual participation in the program is at the discretion of the Board and executive management. Each participant in the program is eligible to earn an RSA, subject to performance over a one-year period. Payout under the program can range from 0% to 150% of target based onthe achievement of five Company performance metrics and individual performance goals (subject to continued employment and certain other terms and conditions of the program). If earned, the RSA is issued following the one-year performance period and vests ratably over a subsequent two-year period (subject to continued employment or as otherwise provided in the underlying award agreement).Inducement and retention program: Non-employee director compensation program: The Company awards its non-employee directors a cash retainer and shares of restricted common stock. The RSAs are granted on the following the Company’s annual meeting of stockholders and fully vest upon the earlier of the first anniversary of the grant date or the completion of the directors’ annual service to the Company. The following are the terms and amounts of the awards issued under the Company’s share-based incentive programs: Non-qualified stock options: The exercise price of all stock options is equal to the Company’s closing stock price on the date of grant. five yearsStock options are subject to various vesting terms, including graded- and cliff-vesting over periods of up to . In addition, stock options vest and become exercisable in full or in part under certain circumstances, including following the occurrence of a change of control (as defined in the option award agreements). Participants who are awarded options must exercise their options within a maximum of ten years of the grant date. The fair value of option grants is estimated on the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions for option grants during the periods indicated below:
Expected volatility is based on the Company’s historical stock price volatility. The expected term is calculated by using the simplified method (average of the vesting and original contractual terms) due to insufficient historical data to estimate the expected term. The risk-free rate is based on the zero coupon U.S. Treasury bond rate over the expected term of the awards. The following table summarizes the stock option activity for the six months ended June 30, 2020:
The following table provides additional stock option information for the periods indicated:
Performance-contingent restricted stock units: The following table summarizes RSU activity during the six months ended June 30, 2020:
The following table provides additional RSU information for the periods indicated:
Restricted stock awards: The following table summarizes RSA activity during the six months ended June 30, 2020:
The following table provides additional RSA information for the periods indicated:
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies In the normal course of business, the Company has been named as a defendant in legal actions in connection with its activities. Some of the actual or threatened legal actions include claims for compensatory damages or claims for indeterminate amounts of damages. The Company contests liability and the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability has been incurred and the Company can reasonably estimate the amount of that loss, the Company accrues the estimated loss by a charge to net income. However, in many legal actions, it is inherently difficult to determine whether any loss is probable, or even reasonably possible, or to estimate the amount of loss. This is particularly true for actions that are in their early stages of development or where plaintiffs seek indeterminate damages. In addition, even where a loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued, it is not always possible to reasonably estimate the size of the possible loss or range of loss. Before a loss, additional loss, range of loss, or range of additional loss can be reasonably estimated for any given action, numerous issues may need to be resolved, including through lengthy discovery, following determination of important factual matters, and/or by addressing novel or unsettled legal questions. For certain other legal actions, the Company can estimate reasonably possible losses, additional losses, ranges of loss, or ranges of additional loss in excess of amounts accrued, but the Company does not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on the consolidated financial statements. While the Company will continue to identify legal actions where it believes a material loss to be reasonably possible and reasonably estimable, there can be no assurance that material losses will not be incurred from claims that the Company has not yet been notified of or are not yet determined to be probable, or reasonably possible and reasonable to estimate. The Company expenses legal costs as they are incurred. |
Basis of Presentation and Significant Accounting Policies (Policies) |
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Basis of presentation | Basis of presentation: 10-Q adopted by the Securities and Exchange Commission (the “SEC ”) and generally accepted accounting principles in the United States of America (“GAAP ”) for interim financial information and, accordingly, do not include all information and note disclosures required by GAAP for complete financial statements. The interim financial statements in this Quarterly Report on Form 10-Q have not been audited by an independent registered public accounting firm in accordance with standards of the Public Company Accounting Oversight Board (United States), but in the opinion of management, the interim financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows in accordance with GAAP. These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the SEC. |
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Significant accounting policies | Significant accounting policies: |
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Principles of consolidation | Principles of consolidation: VIE ”) when it is considered to be the primary beneficiary of the VIE because it has (i) power over the significant activities of the VIE and (ii) the obligation to absorb losses or the right to receive returns that could be significant to the VIE. |
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Variable interest entities | Variable interest entities: SPE ”) to secure debt for general funding purposes. These entities have the limited purpose of acquiring finance receivables and holding and making payments on the related debts. Assets transferred to each SPE are legally isolated from the Company and its affiliates, as well as the claims of the Company’s and its affiliates’ creditors. Further, the assets of each SPE are owned by such SPE and are not available to satisfy the debts or other obligations of the Company or any of its affiliates. The Company continues to service the finance receivables transferred to the SPEs. The lenders and investors in the debt issued by the SPEs generally only have recourse to the assets of the SPEs and do not have recourse to the general credit of the Company.The SPEs’ debt arrangements are structured to provide enhancements to the lenders and investors in the form of overcollateralization (the principal balance of the collateral exceeds the balance of the debt) and reserve funds (restricted cash held by the SPEs). These enhancements, along with the isolated finance receivables pools, increase the creditworthiness of the SPEs above that of the Company as a whole. This increases the marketability of the Company’s collateral for borrowing purposes, leading to more favorable borrowing terms, improved interest rate risk management, and additional flexibility to grow the business. The SPEs are considered VIEs under GAAP and are consolidated into the financial statements of their primary beneficiary. The Company is considered to be the primary beneficiary of the SPEs because it has (i) power over the significant activities through its role as servicer of the finance receivables under each debt arrangement and (ii) the obligation to absorb losses or the right to receive returns that could be significant through the Company’s interest in the monthly residual cash flows of the SPEs after each debt is paid. Consolidation of VIEs results in these transactions being accounted for as secured borrowings; therefore, the pooled receivables and the related debts remain on the consolidated balance sheet of the Company. Each debt is secured solely by the assets of the VIEs and not by any other assets of the Company. The assets of the VIEs are the only source of funds for repayment on each debt, and restricted cash held by the VIEs can only be used to support payments on the debt. The Company recognizes revenue and provision for credit losses on the finance receivables of the VIEs and interest expense on the related secured debt. |
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Use of estimates | Use of estimates: Material estimates that are particularly susceptible to change relate to the determination of the allowance for credit losses, the fair value of share-based compensation, the valuation of deferred tax assets and liabilities, contingent liabilities on litigation matters, and the fair value of financial instruments. |
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Reclassifications | Reclassifications: |
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Net finance receivables | Net finance receivables: non-essential household goods and, in some instances, an automobile. Convenience checks are direct loans originated by mailing checks to customers based on a pre-screening process that includes a review of the prospective customer’s credit profile provided by national credit reporting bureaus or data aggregators. A recipient of a convenience check is able to enter into a loan by endorsing and depositing or cashing the check. Large loan receivables are direct loans to customers, some of which are convenience check receivables and the vast majority of which are secured by non-essential household goods, automobiles, and/or other vehicles. Retail loan receivables consist principally of retail installment sales contracts collateralized by the purchased furniture, appliances, and other retail items, and are initiated by and purchased from retailers, subject to the Company’s credit approval. Automobile loan receivables consist of direct automobile purchase loans, which were originated at the dealership and closed in one of the Company’s branches, and indirect automobile purchase loans, which were originated and closed at a dealership in the Company’s network without the need for the customer to visit one of the Company’s branches. In each case, these automobile loans are collateralized primarily by the purchased automobiles and, in the case of indirect loans, were initiated by and purchased from automobile dealerships, subject to the Company’s credit approval. The Company ceased originating automobile loans in November 2017.Prior to January 1, 2020, net finance receivables included the customer’s unpaid principal balance (“ UPB ”), accrued interest on interest-bearing accounts, unamortized deferred origination fees and costs, and unearned insurance premiums. The UPB consisted of the unpaid principal balance on interest-bearing accounts and the remaining contractual payments less the unearned amount of pre-computed interest for pre-compute accounts.Effective January 1, 2020, with the adoption of CECL accounting, the Company reclassified unearned insurance premiums out of net finance receivables to align its consolidated balance sheet presentation with the amortized cost definition in the new accounting standard. See Note 3, “Finance Receivables, Credit Quality Information, and Allowance for Credit Losses” for further information about the Company’s reclassification of unearned insurance premiums. |
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Allowance for credit losses | Allowance for credit losses: FASB ”) issued an accounting update in June 2016 to change the impairment model for estimating credit losses on financial assets. The previous incurred loss impairment model required the recognition of credit losses when it was probable that a loss had been incurred. The incurred loss model was replaced by the CECL model, which requires entities to estimate the lifetime expected credit loss on financial instruments and to record an allowance to offset the amortized cost basis of the financial asset. The CECL model requires earlier recognition of credit losses as compared to the incurred loss approach. The Company adopted this standard effective January 1, 2020.The allowance for credit losses is based on historical credit experience, current conditions, and reasonable and supportable economic forecasts. The historical loss experience is adjusted for quantitative and qualitative factors that are not fully reflected in the historical data. In determining its estimate of expected credit losses, the Company evaluates information related to credit metrics, changes in its lending strategies and underwriting practices, and the current and forecasted direction of the economic and business environment. These metrics include, but are not limited to, loan portfolio mix and growth, unemployment, credit loss trends, delinquency trends, changes in underwriting, and operational risks. The Company selected a static pool Probability of Default (“ PD ”) / Loss Given Default (“LGD ”) model to estimate its base allowance for credit losses, in which the estimated loss is equal to the product of PD and LGD. Historical static pools of net finance receivables are tracked over the term of the pools to identify the incidences of loss (PDs) and the average severity of losses (LGDs).To enhance the precision of the allowance for credit loss estimate, the Company evaluates its finance receivable portfolio on a pool basis and segments each pool of finance receivables with similar credit risk characteristics. As part of its evaluation, the Company considers portfolio characteristics such as product type, loan size, loan term, internal or external credit scores, delinquency status, geographical location, and vintage. Based on analysis of historical loss experience, the Company selected the following segmentation: product type, Fair Isaac Corporation (“ FICO ”) score, and delinquency status. The Company accounts for certain finance receivables that have been modified by bankruptcy proceedings or company loss mitigation policies using a discounted cash flows approach to properly reserve for customer concessions (rate reductions and term extensions). As finance receivables are originated, provisions for credit losses are recorded in amounts sufficient to maintain an allowance for credit losses at an adequate level to provide for estimated losses over the contractual term of the finance receivables. Subsequent changes to the contractual terms that are a result of re-underwriting are not included in the finance receivable’s expected life. The Company uses its segmentation loss experience to forecast expected credit losses. Historical information about losses generally provides a basis for the estimate of expected credit losses. The Company also considers the need to adjust historical information to reflect the extent to which current conditions differ from the conditions that existed for the period over which historical information was evaluated. These adjustments to historical loss information may be qualitative or quantitative in nature.Reasonable and supportable macroeconomic forecasts are required for the Company’s allowance for credit loss model. The Company engaged a major rating service to assist with compiling a reasonable and supportable forecast. The Company reviews macroeconomic forecasts to use in its allowance for credit losses. The Company adjusts the historical loss experience by relevant qualitative factors for these expectations. The Company does not require reversion adjustments, as the expected lives of its portfolio are shorter than its available forecast periods. The Company charges credit losses against the allowance when the account reaches 180 days contractually delinquent, subject to certain exceptions. The Company’s non-titled customer accounts in a confirmed bankruptcy are charged off in the month following the bankruptcy notification or at 60 days contractually delinquent, subject to certain exceptions. Deceased borrower accounts are charged off in the month following the proper notification of passing, with the exception of borrowers with credit life insurance. Subsequent recoveries of amounts charged off, if any, are credited to the allowance. |
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Nonaccrual status | Nonaccrual status: charge-off policies that result in the timely suspension and reversal of accrued interest. |
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Recent accounting pronouncements | Recent accounting pronouncements: As a result of the adoption of the new credit loss standard on January 1, 2020, through a modified-retrospective approach, the Company recorded an increase to the allowance for credit losses of $60.1 million and a one-time, cumulative reduction to retained earnings of $45.9 million (net of $14.2 million in taxes). The Company’s allowance for credit losses increased from 5.5% to 10.8% as a percentage of the amortized cost basis on January 1, 2020. The CECL accounting adoption did not result in any changes in the cash flows of the financial assets, did not cause the Company to violate any of its existing debt covenants, and did not inhibit the Company in funding its growth or returningcapital to its stockholders. The following table illustrates the impact of the CECL accounting adoption by product:
In August 2018, the FASB issued an accounting update to provide additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. The amendments aligned the capitalization requirements for hosting arrangements that are service contracts with the capitalization principles for internal-use software. This update was effective for annual and interim periods beginning after December 15, 2019, and early adoption was permitted. The Company adopted and applied the update on a prospective basis. The adoption did not have a material impact on its financial statements. |
Basis of Presentation and Significant Accounting Policies (Tables) |
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Impact of the CECL Accounting Adoption | The following table illustrates the impact of the CECL accounting adoption by product:
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Finance Receivables, Credit Quality Information, and Allowance for Credit Losses (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Net Finance Receivables | Net finance receivables for the periods indicated consisted of the following:
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Summary of Unearned Insurance Premiums Reclassification | The tables below illustrate the impacts of this reclassification to the Company’s previously reported balance sheet presentation of receivables and other key metrics:
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Summary of Financing Receivable Credit Quality Indicators | Net finance receivables by product, FICO band, and origination year as of June 30, 2020 are as follows:
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Amortized Cost Basis in Past-Due Loans | The contractual delinquency of the net finance receivables portfolio by product and aging for the periods indicated are as follows:
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Summary Of Impact Of Allowance For Credit Losses During The period | The following table illustrates the impacts to the allowance for credit losses for the periods indicated:
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Reconciliation of Allowance for Credit Losses | The following is a reconciliation of the allowance for credit losses by product for the periods indicated:
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Interest Rate Caps (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Rate Caps | The following is a summary of changes in the rate caps:
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Long-Term Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Company's Long-Term Debt | The following is a summary of the Company’s long-term debt as of the periods indicated:
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Variable Interest Entity, Primary Beneficiary [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Amounts of Consolidated VIE Assets and Liabilities | The carrying amounts of consolidated VIE assets and liabilities are as follows:
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Disclosure About Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount and Estimated Fair Values of Company's Financial Instruments | The carrying amount and estimated fair values of the Company’s financial instruments summarized by level are as follows:
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Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Tax Benefits and Deficiencies from Share-Based Awards | Income tax expense differed from the amount computed by applying the federal income tax rate to total income before income taxes as a result of the following:
The increase in effective tax rates for the three and six months ended June 30, 2020 compared to the prior year periods was primarily related to the impact of margin tax within the state of Texas that is based on gross income, rather than net income, and non-deductible executive compensation (including executive transition costs) under Internal Revenue Code Section 162(m) that are not correlated to income before taxes. The Company receives a tax benefit or deficiency upon the exercise or vesting of share-based awards based on the difference in fair value of the shares at exercise or vesting compared to the grant date fair value that was recognized as share-based compensation expense. Excess tax benefits or deficiencies are recognized in provision for income taxes and impact the Company’s effective income tax rate. The Company recognized excess tax deficiencies for the three and six months ended June 30, 2020 due to the decrease in the fair value of the shares exercised or vested during those periods. |
Earnings Per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following schedule reconciles the computation of basic and diluted earnings per share for the periods indicated:
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Share-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option Grant Fair Value Assumptions | The fair value of option grants is estimated on the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions for option grants during the periods indicated below:
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Summary of Company's Stock Option Plan Activity | The following table summarizes the stock option activity for the six months ended June 30, 2020:
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Summary of Additional Stock Option Information | The following table provides additional stock option information for the periods indicated:
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Summary of RSU Activity | The following table summarizes RSU activity during the six months ended June 30, 2020:
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Summary of Additional RSU Information | The following table provides additional RSU information for the periods indicated:
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Summary of RSA Activity | The following table summarizes RSA activity during the six months ended June 30, 2020:
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Summary of Additional RSA Information | The following table provides additional RSA information for the periods indicated:
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Nature of Business - Additional Information (Detail) |
Jun. 30, 2020
State
Location
|
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Accounting Policies [Abstract] | |
Number of branches | Location | 368 |
Number of states | State | 11 |
Finance Receivables, Credit Quality Information, and Allowance for Credit Losses - Summary of Finance Receivables (Detail) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net finance receivables | $ 1,022,635 | $ 1,133,404 | $ 994,980 |
Small Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net finance receivables | 380,083 | 467,614 | 435,467 |
Large Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net finance receivables | 618,134 | 632,067 | 516,019 |
Automobile Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net finance receivables | 6,059 | 9,640 | 15,717 |
Retail Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net finance receivables | $ 18,359 | $ 24,083 | $ 27,777 |
Finance Receivables, Credit Quality Information, and Allowance for Credit Losses - Amortized Cost Basis in Past-Due Loans (Detail) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
---|---|---|---|
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 49,535 | $ 79,510 | |
Past due, Percent | 4.80% | 7.00% | |
Total net finance receivables | $ 1,022,635 | $ 1,133,404 | $ 994,980 |
Total net finance receivables, Percent | 100.00% | 100.00% | |
Net finance receivables in nonaccrual status | $ 27,085 | $ 42,474 | |
Net finance receivables in nonaccrual status, Percent | 2.60% | 3.70% | |
Financing Receivables, Current [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current | $ 896,928 | $ 949,204 | |
Current, Percent | 87.80% | 83.80% | |
1 to 29 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 76,172 | $ 104,690 | |
Past due, Percent | 7.40% | 9.20% | |
Delinquent Accounts 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 15,277 | $ 25,276 | |
Past due, Percent | 1.40% | 2.20% | |
Delinquent Accounts 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 9,764 | $ 18,781 | |
Past due, Percent | 1.00% | 1.70% | |
Delinquent Accounts 90 to 119 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 7,014 | $ 13,916 | |
Past due, Percent | 0.70% | 1.20% | |
Delinquent Accounts 120 to 149 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 8,081 | $ 11,656 | |
Past due, Percent | 0.80% | 1.00% | |
Delinquent Accounts 150 to 179 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 9,399 | $ 9,881 | |
Past due, Percent | 0.90% | 0.90% | |
Small Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 24,465 | $ 42,375 | |
Past due, Percent | 6.40% | 9.10% | |
Total net finance receivables | $ 380,083 | $ 467,614 | 435,467 |
Total net finance receivables, Percent | 100.00% | 100.00% | |
Net finance receivables in nonaccrual status | $ 14,155 | $ 22,773 | |
Net finance receivables in nonaccrual status, Percent | 3.70% | 4.90% | |
Small Loans [Member] | Financing Receivables, Current [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current | $ 325,871 | $ 377,776 | |
Current, Percent | 85.80% | 80.70% | |
Small Loans [Member] | 1 to 29 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 29,747 | $ 47,463 | |
Past due, Percent | 7.80% | 10.20% | |
Small Loans [Member] | Delinquent Accounts 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 6,736 | $ 12,702 | |
Past due, Percent | 1.70% | 2.80% | |
Small Loans [Member] | Delinquent Accounts 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 4,790 | $ 9,916 | |
Past due, Percent | 1.30% | 2.10% | |
Small Loans [Member] | Delinquent Accounts 90 to 119 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 3,665 | $ 7,518 | |
Past due, Percent | 1.00% | 1.60% | |
Small Loans [Member] | Delinquent Accounts 120 to 149 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 4,314 | $ 6,584 | |
Past due, Percent | 1.10% | 1.40% | |
Small Loans [Member] | Delinquent Accounts 150 to 179 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 4,960 | $ 5,655 | |
Past due, Percent | 1.30% | 1.20% | |
Large Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 23,660 | $ 33,921 | |
Past due, Percent | 3.80% | 5.40% | |
Total net finance receivables | $ 618,134 | $ 632,067 | 516,019 |
Total net finance receivables, Percent | 100.00% | 100.00% | |
Net finance receivables in nonaccrual status | $ 12,115 | $ 17,924 | |
Net finance receivables in nonaccrual status, Percent | 2.00% | 2.80% | |
Large Loans [Member] | Financing Receivables, Current [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current | $ 551,285 | $ 546,414 | |
Current, Percent | 89.20% | 86.40% | |
Large Loans [Member] | 1 to 29 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 43,189 | $ 51,732 | |
Past due, Percent | 7.00% | 8.20% | |
Large Loans [Member] | Delinquent Accounts 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 8,106 | $ 11,480 | |
Past due, Percent | 1.20% | 1.80% | |
Large Loans [Member] | Delinquent Accounts 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 4,675 | $ 8,192 | |
Past due, Percent | 0.80% | 1.30% | |
Large Loans [Member] | Delinquent Accounts 90 to 119 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 3,125 | $ 5,894 | |
Past due, Percent | 0.50% | 1.00% | |
Large Loans [Member] | Delinquent Accounts 120 to 149 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 3,508 | $ 4,588 | |
Past due, Percent | 0.60% | 0.70% | |
Large Loans [Member] | Delinquent Accounts 150 to 179 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 4,246 | $ 3,767 | |
Past due, Percent | 0.70% | 0.60% | |
Automobile Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 291 | $ 755 | |
Past due, Percent | 4.80% | 7.80% | |
Total net finance receivables | $ 6,059 | $ 9,640 | 15,717 |
Total net finance receivables, Percent | 100.00% | 100.00% | |
Net finance receivables in nonaccrual status | $ 222 | $ 591 | |
Net finance receivables in nonaccrual status, Percent | 3.70% | 6.10% | |
Automobile Loans [Member] | Financing Receivables, Current [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current | $ 4,744 | $ 6,921 | |
Current, Percent | 78.30% | 71.80% | |
Automobile Loans [Member] | 1 to 29 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 1,024 | $ 1,964 | |
Past due, Percent | 16.90% | 20.40% | |
Automobile Loans [Member] | Delinquent Accounts 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 80 | $ 241 | |
Past due, Percent | 1.40% | 2.50% | |
Automobile Loans [Member] | Delinquent Accounts 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 33 | $ 110 | |
Past due, Percent | 0.50% | 1.10% | |
Automobile Loans [Member] | Delinquent Accounts 90 to 119 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 63 | $ 129 | |
Past due, Percent | 1.00% | 1.40% | |
Automobile Loans [Member] | Delinquent Accounts 120 to 149 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 79 | $ 127 | |
Past due, Percent | 1.30% | 1.30% | |
Automobile Loans [Member] | Delinquent Accounts 150 to 179 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 36 | $ 148 | |
Past due, Percent | 0.60% | 1.50% | |
Retail Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 1,119 | $ 2,459 | |
Past due, Percent | 6.10% | 10.20% | |
Total net finance receivables | $ 18,359 | $ 24,083 | $ 27,777 |
Total net finance receivables, Percent | 100.00% | 100.00% | |
Net finance receivables in nonaccrual status | $ 593 | $ 1,186 | |
Net finance receivables in nonaccrual status, Percent | 3.20% | 4.90% | |
Retail Loans [Member] | Financing Receivables, Current [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Current | $ 15,028 | $ 18,093 | |
Current, Percent | 81.90% | 75.10% | |
Retail Loans [Member] | 1 to 29 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 2,212 | $ 3,531 | |
Past due, Percent | 12.00% | 14.70% | |
Retail Loans [Member] | Delinquent Accounts 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 355 | $ 853 | |
Past due, Percent | 2.00% | 3.60% | |
Retail Loans [Member] | Delinquent Accounts 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 266 | $ 563 | |
Past due, Percent | 1.40% | 2.30% | |
Retail Loans [Member] | Delinquent Accounts 90 to 119 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 161 | $ 375 | |
Past due, Percent | 0.80% | 1.50% | |
Retail Loans [Member] | Delinquent Accounts 120 to 149 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 180 | $ 357 | |
Past due, Percent | 1.00% | 1.50% | |
Retail Loans [Member] | Delinquent Accounts 150 to 179 Days [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due | $ 157 | $ 311 | |
Past due, Percent | 0.90% | 1.30% |
Finance Receivables, Credit Quality Information, and Allowance for Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Jan. 01, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Net finance receivables included net deferred origination fees | $ 10,100 | $ 10,100 | $ 13,400 | |||||||
Increase decrease in allowance for credit losses | 400 | |||||||||
Allowance for credit losses | $ 142,000 | $ 142,000 | $ 142,400 | 62,200 | $ 57,200 | $ 56,400 | $ 58,300 | |||
Allowance percentage for credit losses | 13.90% | 13.90% | 5.70% | |||||||
Quarterly Trend - Amortized Cost Basis [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Allowance for credit losses | $ 62,200 | $ 60,900 | $ 57,200 | $ 56,400 | ||||||
Allowance percentage for credit losses | 5.50% | 5.70% | 5.70% | 6.10% | ||||||
CECL Allowance [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Allowance for credit losses | $ 122,300 | |||||||||
Allowance percentage of net finance receivables | 10.80% | |||||||||
Post-CECL Change in Allowance [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in allowance for credit losses | $ 19,700 | |||||||||
COVID19 Impact [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in allowance for credit losses | $ 9,500 | 33,400 | ||||||||
Reserve Release Due to Portfolio Liquidation [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in allowance for credit losses | $ 9,900 | $ 13,700 | ||||||||
CARES Act [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase in U.S. unemployment rate | 17.20% | |||||||||
CARES Act [Member] | Subsequent Event [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase in U.S. unemployment rate | 8.60% |
Finance Receivables, Credit Quality Information, and Allowance for Credit Losses - Reconciliation of Allowance for Credit Losses (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | $ 142,400 | $ 56,400 | $ 62,200 | $ 58,300 | |
Impact Of CECL adoption | 60,100 | ||||
Provision for credit losses | 27,499 | 25,714 | 77,021 | 49,057 | |
Credit losses | (29,074) | (26,001) | (59,754) | (52,378) | |
Recoveries | 1,175 | 1,087 | 2,433 | 2,221 | |
Ending balance | 142,000 | 57,200 | 142,000 | 57,200 | |
Net finance receivables | $ 1,022,635 | $ 994,980 | $ 1,022,635 | $ 994,980 | $ 1,133,404 |
Allowance as Percentage of Finance Receivables | 13.90% | 5.70% | 13.90% | 5.70% | |
Small [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | $ 62,454 | $ 29,793 | $ 30,588 | $ 30,759 | |
Impact Of CECL adoption | 24,185 | ||||
Provision for credit losses | 11,514 | 13,736 | 36,066 | 27,691 | |
Credit losses | (16,420) | (14,993) | (33,948) | (30,481) | |
Recoveries | 657 | 598 | 1,314 | 1,165 | |
Ending balance | 58,205 | 29,134 | 58,205 | 29,134 | |
Net finance receivables | $ 380,083 | $ 435,467 | $ 380,083 | $ 435,467 | 467,614 |
Allowance as Percentage of Finance Receivables | 15.30% | 6.70% | 15.30% | 6.70% | |
Large [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | $ 75,013 | $ 23,217 | $ 29,148 | $ 23,702 | |
Impact Of CECL adoption | 33,550 | ||||
Provision for credit losses | 15,513 | 10,989 | 39,268 | 19,440 | |
Credit losses | (11,694) | (9,550) | (23,655) | (18,887) | |
Recoveries | 473 | 398 | 994 | 799 | |
Ending balance | 79,305 | 25,054 | 79,305 | 25,054 | |
Net finance receivables | $ 618,134 | $ 516,019 | $ 618,134 | $ 516,019 | 632,067 |
Allowance as Percentage of Finance Receivables | 12.80% | 4.90% | 12.80% | 4.90% | |
Automobile [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | $ 1,247 | $ 1,470 | $ 820 | $ 1,893 | |
Impact Of CECL adoption | 599 | ||||
Provision for credit losses | 15 | 131 | 112 | 240 | |
Credit losses | (115) | (566) | (426) | (1,218) | |
Recoveries | 13 | 58 | 55 | 178 | |
Ending balance | 1,160 | 1,093 | 1,160 | 1,093 | |
Net finance receivables | $ 6,059 | $ 15,717 | $ 6,059 | $ 15,717 | 9,640 |
Allowance as Percentage of Finance Receivables | 19.10% | 7.00% | 19.10% | 7.00% | |
Retail [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | $ 3,686 | $ 1,920 | $ 1,644 | $ 1,946 | |
Impact Of CECL adoption | 1,766 | ||||
Provision for credit losses | 457 | 858 | 1,575 | 1,686 | |
Credit losses | (845) | (892) | (1,725) | (1,792) | |
Recoveries | 32 | 33 | 70 | 79 | |
Ending balance | 3,330 | 1,919 | 3,330 | 1,919 | |
Net finance receivables | $ 18,359 | $ 27,777 | $ 18,359 | $ 27,777 | $ 24,083 |
Allowance as Percentage of Finance Receivables | 18.10% | 6.90% | 18.10% | 6.90% |
Finance Receivables, Credit Quality Information, and Allowance for Credit Losses - Summary Of Impact Of Allowance For Credit Losses During The period (Detail) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Mar. 31, 2020 |
Jan. 01, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|---|---|---|---|
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ 142,000 | $ 142,400 | $ 62,200 | $ 57,200 | $ 56,400 | $ 58,300 | ||
Allowance as Percentage of Finance Receivables | 13.90% | 5.70% | ||||||
Quarterly Trend - Amortized Cost Basis [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ 62,200 | $ 60,900 | $ 57,200 | $ 56,400 | ||||
Allowance as Percentage of Finance Receivables | 5.50% | 5.70% | 5.70% | 6.10% | ||||
Pre-adoption Allowance [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance as Percentage of Finance Receivables | 5.60% | 5.80% | 5.90% | 6.20% | ||||
Impact of Adoption [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ 60,100 | |||||||
Allowance as Percentage of Finance Receivables | 5.30% | |||||||
CECL Allowance [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ 122,300 | |||||||
Allowance percentage of net finance receivables | 10.80% | |||||||
Reserve Build (Loss) [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ 19,700 | |||||||
Small Loans [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ 58,205 | 62,454 | $ 30,588 | $ 29,134 | $ 29,793 | 30,759 | ||
Allowance as Percentage of Finance Receivables | 15.30% | 6.70% | ||||||
Small Loans [Member] | Pre-adoption Allowance [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | 30,588 | |||||||
Small Loans [Member] | Impact of Adoption [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ 24,185 | |||||||
Small Loans [Member] | CECL Allowance [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | 54,773 | |||||||
Small Loans [Member] | Reserve Build (Loss) [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ 3,432 | |||||||
Large Loans [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ 79,305 | 75,013 | 29,148 | $ 25,054 | 23,217 | 23,702 | ||
Allowance as Percentage of Finance Receivables | 12.80% | 4.90% | ||||||
Large Loans [Member] | Pre-adoption Allowance [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | 29,148 | |||||||
Large Loans [Member] | Impact of Adoption [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | 33,550 | |||||||
Large Loans [Member] | CECL Allowance [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | 62,698 | |||||||
Large Loans [Member] | Reserve Build (Loss) [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ 16,607 | |||||||
Automobile Loans [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | 1,160 | |||||||
Automobile Loans [Member] | Pre-adoption Allowance [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | 820 | |||||||
Automobile Loans [Member] | Impact of Adoption [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | 599 | |||||||
Automobile Loans [Member] | CECL Allowance [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | 1,419 | |||||||
Automobile Loans [Member] | Reserve Build (Loss) [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | (259) | |||||||
Retail Loans [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ 3,330 | $ 3,686 | 1,644 | $ 1,919 | $ 1,920 | $ 1,946 | ||
Allowance as Percentage of Finance Receivables | 18.10% | 6.90% | ||||||
Retail Loans [Member] | Pre-adoption Allowance [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ 1,644 | |||||||
Retail Loans [Member] | Impact of Adoption [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | 1,766 | |||||||
Retail Loans [Member] | CECL Allowance [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ 3,410 | |||||||
Retail Loans [Member] | Reserve Build (Loss) [Member] | ||||||||
Schedule Of Impact Of Allowance For Credit Losses During The Period [Line Items] | ||||||||
Allowance for credit losses | $ (80) |
Interest Rate Caps - Additional Information (Detail) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Derivative [Line Items] | ||
Notional amount of interest rate cap | $ 300.0 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Derivative [Line Items] | ||
Interest rate | 0.16% | 1.76% |
Interest Rate Cap Contracts Expiring In April 2021 [Member] | ||
Derivative [Line Items] | ||
Notional amount of interest rate cap | $ 200.0 | |
Maturity period of interest rate caps exchanged | Apr. 01, 2021 | |
Strike rate | 3.50% | |
Interest Rate Cap Contracts Expiring in March 2023 [Member] | ||
Derivative [Line Items] | ||
Notional amount of interest rate cap | $ 100.0 | |
Maturity period of interest rate caps exchanged | Mar. 01, 2023 | |
Strike rate | 1.75% |
Interest Rate Caps - Summary of Change in Rate Caps (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Offsetting [Abstract] | ||||
Balance at beginning of period | $ 85 | $ 49 | $ 249 | |
Purchases | $ 114 | |||
Fair value adjustment included as an increase in interest expense | (33) | (43) | (62) | (243) |
Balance at end of period, included in other assets | $ 52 | $ 6 | $ 52 | $ 6 |
Long-Term Debt - Summary of the Company's Long-Term Debt (Detail) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt | $ 683,865 | $ 808,218 |
Unamortized debt issuance costs | (7,584) | (9,607) |
Net long-term debt | 676,281 | 798,611 |
Unused amount of revolving credit facilities (subject to borrowing base) | 493,054 | 369,271 |
Senior Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 246,254 | 350,818 |
Unamortized debt issuance costs | (2,156) | (2,504) |
Net long-term debt | 244,098 | 348,314 |
Revolving Warehouse Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 26,844 | 46,633 |
Unamortized debt issuance costs | (1,588) | (1,875) |
Net long-term debt | 25,256 | 44,758 |
RMIT 2018-1 securitization [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 150,246 | 150,246 |
Unamortized debt issuance costs | (912) | (1,558) |
Net long-term debt | 149,334 | 148,688 |
RMIT 2018-2 securitization [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 130,349 | 130,349 |
Unamortized debt issuance costs | (1,273) | (1,687) |
Net long-term debt | 129,076 | 128,662 |
RMIT 2019-1 securitization [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 130,172 | 130,172 |
Unamortized debt issuance costs | (1,655) | (1,983) |
Net long-term debt | $ 128,517 | $ 128,189 |
Long-Term Debt - Additional Information (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Dec. 31, 2019 |
Jun. 30, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Line of Credit Facility [Line Items] | |||||
Cash deposited to restricted cash reserve account | $ 54,164,000 | $ 54,423,000 | $ 41,803,000 | $ 46,484,000 | |
Unrestricted cash | 2,263,000 | 8,973,000 | $ 694,000 | $ 3,657,000 | |
Unrestricted Cash [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Unrestricted cash | 9,000,000.0 | ||||
Revolving Warehouse Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Secured line of credit | $ 125,000,000 | ||||
Debt agreement expiration date | Sep. 20, 2022 | ||||
Line of credit facility, accordion feature | $ 150,000,000 | ||||
Percentage of advances on debt agreement eligible secured finance receivables | 80.00% | ||||
Cash deposited to restricted cash reserve account | $ 300,000 | ||||
Debt maturity date | 2022-04 | ||||
Debt revolving period end date | 2021-04 | ||||
RMIT 2018-1 securitization [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Cash deposited to restricted cash reserve account | $ 1,700,000 | ||||
Debt maturity date | 2027-07 | ||||
Terms related to loan prepayment | Prior to maturity in July 2027, the Company may redeem the notes in full, but not in part, at its option on any remaining note payment date. No payments of principal of the notes were made during the revolving period. | ||||
Debt revolving period end date | 2020-06 | ||||
Private offering of investment grade asset-backed notes | $ 150,000,000 | ||||
Weighted average rate | 3.93% | ||||
RMIT 2018-2 securitization [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Cash deposited to restricted cash reserve account | $ 1,400,000 | ||||
Debt maturity date | 2028-01 | ||||
Terms related to loan prepayment | Prior to maturity in January 2028, the Company may redeem the notes in full, but not in part, at its option on any note payment date on or after the payment date occurring in January 2021. No payments of principal of the notes will be made during the revolving period. | ||||
Debt revolving period end date | 2020-12 | ||||
Private offering of investment grade asset-backed notes | $ 130,000,000 | ||||
Weighted average rate | 4.87% | ||||
RMIT 2019-1 securitization [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Cash deposited to restricted cash reserve account | $ 1,400,000 | ||||
Debt maturity date | 2028-11 | ||||
Terms related to loan prepayment | Prior to maturity in November 2028, the Company may redeem the notes in full, but not in part, at its option on any note payment date on or after the payment date occurring in November 2021. No payments of principal of the notes will be made during the revolving period. | ||||
Debt revolving period end date | 2021-10 | ||||
Private offering of investment grade asset-backed notes | $ 130,000,000 | ||||
Weighted average rate | 3.17% | ||||
Senior Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Secured line of credit | $ 640,000,000 | ||||
Debt agreement expiration date | Jun. 20, 2020 | ||||
Line of credit facility, accordion feature | $ 650,000,000 | ||||
Percentage of advances on debt agreement eligible secured finance receivables | 85.00% | ||||
Percentage of advances on debt agreement eligible unsecured finance receivables | 80.00% | ||||
Current percentage of advances on eligible secured finance receivables | 80.00% | ||||
Current percentage of advances on eligible unsecured finance receivables | 75.00% | ||||
Credit facility, eligible borrowing capacity | $ 153,500,000 | ||||
Description of Variable Rate Basis | Borrowings under the facility bear interest, payable monthly, at a blended rate equal to three-month LIBOR, plus a margin of 2.15% (2.20% prior to the October 2019 amendment). The three-month LIBOR was 0.30% and 1.91% at June 30, 2020 and December 31, 2019, respectively. RMR II pays an unused commitment fee between 0.35% and 0.85% based upon the average daily utilization of the facility. | ||||
Percentage of advances on debt agreement eligible delinquent renewals of finance receivables | 60.00% | ||||
Commitment fee description | The Company pays an unused line fee between 0.375% and 0.65% based upon the average outstanding balance of the facility. | ||||
Current percentage of advances on eligible delinquent renewals of finance receivables | 55.00% | ||||
Senior Revolving Credit Facility [Member] | Senior Revolving Credit Facility Prior to September 20, 2019 [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Secured line of credit | $ 638,000,000 | ||||
Debt agreement expiration date | Jun. 20, 2020 | ||||
Waterfall [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Cash deposited to restricted cash reserve account | $ 39,400,000 | $ 38,900,000 | |||
Minimum [Member] | Revolving Warehouse Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Unused line fee | 0.35% | ||||
Minimum [Member] | Senior Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Unused line fee | 0.375% | ||||
Maximum [Member] | Revolving Warehouse Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Unused line fee | 0.85% | ||||
Maximum [Member] | Senior Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Unused line fee | 0.65% | ||||
London Interbank Offered Rate (LIBOR) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate | 1.76% | 0.16% | |||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Warehouse Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate | 1.91% | 0.30% | |||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Warehouse Credit Facility [Member] | Milestones Associated with Conversion to New Loan Origination and Servicing System [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, basis spread | 2.15% | 2.20% | |||
London Interbank Offered Rate (LIBOR) [Member] | Senior Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, basis spread | 3.00% | ||||
Interest rate | 1.76% | 0.16% | |||
London Interbank Offered Rate (LIBOR) [Member] | Senior Revolving Credit Facility [Member] | Availability Percentage Below 10% [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, basis spread | 3.25% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Senior Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Effective interest rate on line of credit | 1.00% |
Long-Term Debt - Schedule of Carrying Amounts of Consolidated VIE's Assets and Liabilities (Detail) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|---|---|
Assets | ||||||
Cash | $ 8,973 | $ 2,263 | $ 694 | $ 3,657 | ||
Net finance receivables | 1,022,635 | 1,133,404 | 994,980 | |||
Allowance for credit losses | (142,000) | $ (142,400) | (62,200) | (57,200) | $ (56,400) | (58,300) |
Restricted cash | 54,423 | 54,164 | $ 41,803 | $ 46,484 | ||
Other assets | 11,023 | 7,704 | ||||
Total assets | 1,000,225 | 1,158,540 | ||||
Liabilities | ||||||
Net long-term debt | 676,281 | 798,611 | ||||
Accounts payable and accrued expenses | 34,843 | 28,676 | ||||
Total liabilities | 740,344 | 855,757 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Assets | ||||||
Cash | 177 | 152 | ||||
Net finance receivables | 451,048 | 474,340 | ||||
Allowance for credit losses | (57,879) | (22,015) | ||||
Restricted cash | 43,729 | 44,221 | ||||
Other assets | 7 | 68 | ||||
Total assets | 437,082 | 496,766 | ||||
Liabilities | ||||||
Net long-term debt | 432,183 | 450,297 | ||||
Accounts payable and accrued expenses | 72 | 86 | ||||
Total liabilities | $ 432,255 | $ 450,383 |
Disclosure About Fair Value of Financial Instruments - Additional Information (Detail) |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Turnover rate of loan portfolio | 1.2 |
Disclosure About Fair Value of Financial Instruments - Carrying Amount and Estimated Fair Values of Company's Financial Instruments (Detail) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|---|---|
Assets | ||||||
Interest rate caps | $ 52 | $ 85 | $ 6 | $ 49 | $ 249 | |
Net finance receivables, less unearned insurance premiums and allowance for credit losses | 853,619 | $ 1,042,613 | ||||
Carrying Amount [Member] | Level 1 Inputs [Member] | ||||||
Assets | ||||||
Cash | 8,973 | 2,263 | ||||
Restricted cash | 54,423 | 54,164 | ||||
Carrying Amount [Member] | Level 2 Inputs [Member] | ||||||
Assets | ||||||
Interest rate caps | 52 | |||||
Carrying Amount [Member] | Level 3 Inputs [Member] | ||||||
Assets | ||||||
Net finance receivables, less unearned insurance premiums and allowance for credit losses | 853,619 | 1,042,613 | ||||
Liabilities | ||||||
Long-term debt | 683,865 | 808,218 | ||||
Estimated Fair Value [Member] | Level 1 Inputs [Member] | ||||||
Assets | ||||||
Cash | 8,973 | 2,263 | ||||
Restricted cash | 54,423 | 54,164 | ||||
Estimated Fair Value [Member] | Level 2 Inputs [Member] | ||||||
Assets | ||||||
Interest rate caps | 52 | |||||
Estimated Fair Value [Member] | Level 3 Inputs [Member] | ||||||
Assets | ||||||
Net finance receivables, less unearned insurance premiums and allowance for credit losses | 916,636 | 1,042,613 | ||||
Liabilities | ||||||
Long-term debt | $ 669,911 | $ 808,218 |
Income Taxes - Schedule of Effective Income Tax Reconciliation (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Federal tax expense at statutory rate | 21.00% | 21.00% | 21.00% | 21.00% |
Increase (reduction) in income taxes resulting from: | ||||
State tax, net of federal benefit | 9.00% | 3.10% | 6.60% | 3.00% |
Section 162(m) limitation | 6.30% | 0.30% | 4.00% | 0.30% |
Excess tax (benefits) deficiencies from share-based awards | 0.60% | 0.00% | 6.40% | (0.20%) |
Other | (0.80%) | (0.20%) | (0.30%) | (0.60%) |
Effective tax rate | 36.10% | 24.20% | 37.70% | 23.50% |
Federal tax expense at statutory rate | $ 2,455 | $ 2,320 | $ 386 | $ 4,525 |
Increase (reduction) in income taxes resulting from: | ||||
State tax, net of federal benefit | 1,056 | 347 | 122 | 655 |
Section 162(m) limitation | 739 | 33 | 74 | 73 |
Excess tax (benefits) deficiencies from share-based awards | 72 | (3) | 118 | (43) |
Other | (103) | (20) | (6) | (140) |
Total | $ 4,219 | $ 2,677 | $ 694 | $ 5,070 |
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Numerator: | ||||
Net income | $ 7,470 | $ 8,369 | $ 1,145 | $ 16,477 |
Denominator: | ||||
Weighted-average shares outstanding for basic earnings per share | 10,962 | 11,706 | 10,929 | 11,709 |
Effect of dilutive securities | 51 | 316 | 201 | 340 |
Weighted-average shares adjusted for dilutive securities | 11,013 | 12,022 | 11,130 | 12,049 |
Basic | $ 0.68 | $ 0.71 | $ 0.10 | $ 1.41 |
Diluted | $ 0.68 | $ 0.70 | $ 0.10 | $ 1.37 |
Earnings Per Share - Additional Information (Detail) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Stock Compensation Plans [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options to purchase common stock, Shares | 1.0 | 0.3 | 1.0 | 0.3 |
Share-based Compensation - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Apr. 22, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercise period of options | 10 years | ||||
2015 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant | 600,000 | 600,000 | |||
Long Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance target for achievement period | 3 years | ||||
Non-Employee Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-employee director compensation grant period | 5 days | ||||
Minimum [Member] | Long Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of performance target for achievement | 0.00% | ||||
Maximum [Member] | Graded and Cliff Vesting [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period of options | 5 years | ||||
Maximum [Member] | Long Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of performance target for achievement | 150.00% | ||||
Stock Compensation Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized share-based compensation expense | $ 7.0 | $ 7.0 | |||
Period of recognition of share-based compensation expense | 2 years | ||||
Share-based compensation expense | $ 1.1 | $ 1.2 | $ 2.5 | $ 2.2 | |
Stock Compensation Plans [Member] | 2015 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum aggregate number of shares | 1,550,000 | 1,550,000 | |||
Shares available for grant | 900,000 | ||||
Plan description | As of June 30, 2020, subject to adjustments as provided in the 2015 Plan, the maximum aggregate number of shares of the Company’s common stock that could be issued under the 2015 Plan could not exceed the sum of (i) 1.55 million shares plus (ii) any shares (A) remaining available for the grant of awards as of the 2015 Plan effective date (April 22, 2015) under the 2007 Plan or the 2011 Plan and/or (B) subject to an award granted under the 2007 Plan or the 2011 Plan, which award is forfeited, cancelled, terminated, expires, or lapses without the issuance of shares or pursuant to which such shares are forfeited. As of the effectiveness of the 2015 Plan (April 22, 2015), there were 0.9 million shares available for grant under the 2015 Plan, inclusive of shares previously available for grant under the 2007 Plan and the 2011 Plan that were rolled over to the 2015 Plan. | ||||
Restricted Stock [Member] | Long Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance target for achievement period | 1 year | ||||
Deferred compensation arrangement with individual, description | Each participant in the program is eligible to earn an RSA, subject to performance over a one-year period. Payout under the program can range from 0% to 150% of target based onthe achievement of five Company performance metrics and individual performance goals (subject to continued employment and certain other terms and conditions of the program). | ||||
Vesting period of options | 2 years | ||||
Restricted Stock [Member] | Minimum [Member] | Long Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of performance target for achievement | 0.00% | ||||
Restricted Stock [Member] | Maximum [Member] | Long Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of performance target for achievement | 150.00% |
Share-based Compensation - Option Grant Fair Value Assumptions (Detail) |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected volatility | 44.88% | 41.14% |
Expected dividends | 0.00% | 0.00% |
Expected term (in years) | 6 years | 6 years |
Risk-free rate | 0.71% | 2.55% |
Share-based Compensation - Summary of Company's Stock Option Plan Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
$ / shares
shares
| |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of Shares, Options outstanding, Beginning balance | shares | 1,067 |
Number of Shares, Granted | shares | 124 |
Number of Shares, Exercised | shares | (22) |
Number of Shares, Forfeited | shares | (33) |
Number of Shares, Expired | shares | |
Number of Shares, Options outstanding, Ending balance | shares | 1,136 |
Number of Shares, Options exercisable | shares | 963 |
Weighted Average Exercise Price Per Share, Options outstanding, Beginning balance | $ / shares | $ 19.61 |
Weighted Average Exercise Price Per Share, Granted | $ / shares | 17.71 |
Weighted Average Exercise Price Per Share, Exercised | $ / shares | 17.72 |
Weighted Average Exercise Price Per Share, Forfeited | $ / shares | 27.98 |
Weighted Average Exercise Price Per Share, Expired | $ / shares | |
Weighted Average Exercise Price Per Share, Options outstanding, Ending balance | $ / shares | 19.20 |
Weighted Average Exercise Price Per Share, Options exercisable | $ / shares | $ 18.98 |
Weighted Average Remaining Contractual Life (Years), Options outstanding | 5 years 8 months 12 days |
Weighted Average Remaining Contractual Life (Years), Options exercisable | 5 years 1 month 6 days |
Aggregate Intrinsic Value, Options outstanding | $ | $ 1,112 |
Aggregate Intrinsic Value, Options exercisable | $ | $ 992 |
Share-based Compensation - Summary of Additional Stock Option Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Weighted-average grant date fair value per share | $ 0 | $ 0 | $ 7.58 | $ 12.07 |
Intrinsic value of options exercised | $ 0 | $ 0 | $ 219 | $ 0 |
Fair value of stock options that vested | $ 0 | $ 0 | $ 353 | $ 0 |
Share-based Compensation - Summary of RSU Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-vested units at January 1, 2020 | 156 | |||
Granted (target) | 67 | |||
Achieved performance adjustment | (2) | |||
Vested | (66) | |||
Forfeited | (27) | |||
Non-vested units at June 30, 2020 | 128 | 128 | ||
Weighted Average Grant Date Fair Value, Non-vested units at January 1, 2020 | $ 24.57 | |||
Weighted Average Grant Date Fair Value, Granted (target) | $ 15.86 | $ 0 | 15.86 | $ 27.89 |
Weighted Average Grant Date Fair Value, Achieved performance adjustment | 19.99 | |||
Weighted Average Grant Date Fair Value, Vested | 19.99 | |||
Weighted Average Grant Date Fair Value, Forfeited | 28.03 | |||
Weighted Average Grant Date Fair Value Non-vested units at June 30, 2020 | $ 21.76 | $ 21.76 |
Share-based Compensation - Summary of RSU Activity (Parenthetical) (Detail) |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
The target percentage of RSUs earned and vested | 96.60% |
Share-based Compensation - Summary of Additional RSU Information (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant date fair value per unit | $ 15.86 | $ 0 | $ 15.86 | $ 27.89 |
Fair value of RSUs that vested | $ 0 | $ 0 | $ 1,314 | $ 916 |
Share-based Compensation - Summary of RSA Activity (Detail) - Restricted Stock [Member] - $ / shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-vested units at January 1, 2020 | 126 | |||
Granted | 199 | |||
Vested | (44) | |||
Forfeited | (11) | |||
Non-vested units at June 30, 2020 | 270 | 270 | ||
Weighted Average Grant Date Fair Value, Non-vested units at January 1, 2020 | $ 26.93 | |||
Weighted Average Grant Date Fair Value, Granted | $ 15.58 | $ 24.66 | 19.39 | $ 27.20 |
Weighted Average Grant Date Fair Value, Vested | 25.21 | |||
Weighted Average Grant Date Fair Value, Forfeited | 27.89 | |||
Weighted Average Grant Date Fair Value Non-vested units at June 30, 2020 | $ 21.60 | $ 21.60 |
Share-based Compensation - Summary of Additional RSA Information (Detail) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant date fair value per share | $ 15.58 | $ 24.66 | $ 19.39 | $ 27.20 |
Fair value of RSAs that vested | $ 819 | $ 810 | $ 1,121 | $ 918 |
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