covid pandemic – Saar New Media http://saar-new-media.com/ Fri, 11 Mar 2022 22:30:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://saar-new-media.com/wp-content/uploads/2021/07/icon-6-150x150.png covid pandemic – Saar New Media http://saar-new-media.com/ 32 32 OPPFI INC. MANAGEMENT REPORT OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-K) https://saar-new-media.com/oppfi-inc-management-report-of-financial-position-and-results-of-operations-form-10-k/ Fri, 11 Mar 2022 22:30:07 +0000 https://saar-new-media.com/oppfi-inc-management-report-of-financial-position-and-results-of-operations-form-10-k/ PREVIEW We are a leading mission-driven financial technology platform that powers banks to offer accessible financial products to everyday consumers through our proprietary technology and artificial intelligence ("AI") and a top-rated customer experience. Our primary mission is to facilitate financial inclusion and credit access to the 150 million everyday consumers who lack access to mainstream […]]]>

PREVIEW


We are a leading mission-driven financial technology platform that powers banks
to offer accessible financial products to everyday consumers through our
proprietary technology and artificial intelligence ("AI") and a top-rated
customer experience. Our primary mission is to facilitate financial inclusion
and credit access to the 150 million everyday consumers who lack access to
mainstream credit and help them build financial health. Consumers on our
platform benefit from higher approval rates and a highly automated, transparent,
efficient, and fully digital experience. Our bank partners benefit from our
turn-key, outsourced marketing, data science, and proprietary technology to
digitally acquire, underwrite and service everyday consumers and increase
automation throughout the lending process.

We principally service consumers on our financial platform through OppLoans,
which is our bank sponsored installment loan product that is a fully amortizing,
simple interest small dollar loan with an average loan size of approximately
$1,500 and a term of 11 months. We also recently launched our SalaryTap and
OppFi Card products, which do not currently represent a significant amount of
our business.

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Covid-19 pandemic


On March 11, 2020, the World Health Organization designated the novel
coronavirus ("COVID-19") as a global pandemic. Recently, consumer activity has
began to recover and many government mandates to restrict daily activities have
been lifted, but the long-term effects of the COVID-19 pandemic globally and in
the United States remain unknown. Worker shortages, supply chain issues,
inflationary pressures, vaccine and testing requirements, the emergence of new
variants, and the reinstatement of restrictions and health and safety related
measures in response to the emergence of new variants, such as the Delta and
Omicron variants, contributed to the volatility of ongoing recovery. There can
be no assurance that economic recovery will continue or that consumer behavior
will return to pre-pandemic levels. For further discussion please reference the
'Risk Factors' section.

Election of Fair Value

On January 1, 2021, we elected the fair value option for our OppLoan product.
Accordingly, the related finance receivables are carried at fair value in the
consolidated balance sheets and the changes in fair value are included in the
consolidated statements of operations. For more information, please refer to
"Fair Value Pro Forma" below.

RECENT DEVELOPMENTS

The main recent events that have had an impact on our activities are as follows:


•On November 18, 2021, the Company entered into a Consent Judgement and Order
("Settlement") with the Attorney General of the District of Columbia
("District") to resolve all matters in a dispute related to the action
previously filed against the Company by the District ("Action"). The Company
denies the allegations in the Action and denies that it has violated any law or
engaged in any deceptive or unfair practices. The Action was resolved to avoid
the expense of protracted litigation. As part of the Settlement, the Company
agreed to, among other things, refrain from certain business activities in the
District of Columbia, pay $0.3 million to the District of Columbia and provide
refunds to certain District of Columbia consumers. As of December 31, 2021,
unpaid refunds totaled $1.5 million, which is included in accrued expenses on
the consolidated balance sheets.

•On January 6, 2022, the Company announced that its Board of Directors ("Board")
had authorized a program to repurchase ("Repurchase Program") up to $20.0
million in the aggregate of shares of the Company's Class A Common Stock.
Repurchases under the Repurchase Program may be made from time to time, on the
open market, in privately negotiated transactions, or by other methods, at the
discretion of the management of the Company and in accordance with the
limitations set forth in Rule 10b-18 promulgated under the Exchange Act and
other applicable legal requirements. The timing and amount of the repurchases
will depend on market conditions and other requirements. The Repurchase Program
does not obligate the Company to repurchase any dollar amount or number of
shares and the Repurchase Program may be extended, modified, suspended, or
discontinued at any time. For each share of Class A Common Stock that the
Company repurchases under the Repurchase Program, OppFi-LLC will redeem one
Class A common unit of OppFi-LLC held by the Company, decreasing the percentage
ownership of OppFi-LLC by the Company and relatively increasing the ownership by
the other members. The Repurchase Program will expire in December 2023.

•On February 23, 2022, the Board of the Company appointed Mr. Todd G. Schwartz
as the Chief Executive Officer of the Company, effective February 28, 2022. Mr.
Schwartz will continue to serve as the Executive Chairman of the Board.

•On March 7, 2022, the Company, through OppFi-LLC, filed a complaint for
declaratory and injunctive relief ("Complaint") against the Commissioner (in her
official capacity) of the Department of Financial Protection and Innovation of
the State of California ("Defendant") in the Superior Court of the State of
California, County of Los Angeles, Central Division. The Complaint seeks a
declaration that the interest rate caps set forth in the California Financing
Law, as amended by the Fair Access to Credit Act, a/k/a AB 539 ("CFL"), do not
apply to loans that are originated by the Company's federally-insured
state-chartered bank partners and serviced through the Company's technology and
service platform pursuant to a contractual arrangement with each such bank
("Program"). The Complaint further seeks injunctive relief against the
Defendant, preventing the Defendant from enforcing interest rate caps under the
CFL against the Company based on activities related to the Program. As of
December 31, 2021, consumers living in the State of California made up
approximately 11% of the Company's finance receivables portfolio. The Company
intends to aggressively prosecute the claims set forth in the Complaint.

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STRONG POINTS


Our financial results as of and for the year ended December 31, 2021 are
summarized below:
•Basic and diluted earnings per share ("EPS") of $1.93 for the year ended
December 31, 2021;
•Adjusted basic and diluted EPS(1) of $0.78 for the year ended December 31,
2021;
•Net originations increased 23% to $595.1 million from $483.4 million for the
years ended December 31, 2021 and 2020, respectively;
•Ending receivables increased 22% to $337.5 million from $275.7 million as of
December 31, 2021 and 2020, respectively;
•Total revenue increased 20% to $350.6 million from $291.0 million for the years
ended December 31, 2021 and 2020, respectively;
•Adjusted revenue(1) increased 9 % to $350.6 million from $323.0 million for the
years ended December 31, 2021 and 2020, respectively;
•Net income increased 16% to $89.8 million from $77.5 million for the years
ended December 31, 2021 and 2020 respectively; and
•Adjusted net income(1) increased 19% to $65.8 million from $55.2 million for
the years ended December 31, 2021 and 2020, respectively.

(1) Adjusted Basic and Diluted EPS, Adjusted Revenue and Adjusted Net Income are
non-Generally Accepted Accounting Principles ("GAAP") financial measures. For
information regarding our uses and definitions of these measures and for
reconciliations to the most directly comparable United States GAAP measures, see
"Non-GAAP Financial Measures" below.

Key performance indicators


We regularly review the following key metrics, to evaluate our business, measure
our performance, identify trends affecting our business, formulate financial
projections and make strategic decisions, which may also be useful to an
investor. The following tables and related discussion set forth key financial
and operating metrics for the Company's operations as of and for the years ended
December 31, 2021 and 2020.

Note: All key performance metrics include the three products on the OpFi
platform and are not shown separately as the contributions from SalaryTap and OppFi Card were de minimis.


Total Net Originations

We measure originations to assess the growth trajectory and overall size of our
loan portfolio. There is a direct correlation between origination growth and
revenue growth. We include both bank partner originations as well as those
originated by us directly. Loans are considered to be originated when the
contract is signed between us and the prospective borrower. The vast majority of
our originations ultimately disburse to a borrower, but disbursement timing lags
that of originations. Originations may be useful to an investor because they
help understand the growth trajectory of our revenues.

The following tables present total net originations (defined as gross
originations net of transferred balance on refinanced loans), percentage of net
originations by bank partners, and percentage of net originations by new loans
for the years ended December 31, 2021 and 2020 (in thousands):

                                                         Year Ended December 31,                          Change
                                                        2021                  2020                 $                  %
Total net originations                            $        595,079       $      483,350       $ 111,729               23.1  %
Percentage of net originations by bank
partners                                                   90.6  %            65.0    %                N/A            39.4  %
Percentage of net originations by new loans                46.2  %            42.8    %                N/A             7.9  %



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Net originations increased to $595.1 million for the year ended December 31,
2021, from $483.4 million for the year ended December 31, 2020. The 23.1%
increase was primarily due to a partial recovery from the short-term reduction
in customer demand attributable to the COVID-19 pandemic and related
governmental stimulus measures that we experienced 2020. However, 2021 growth
was significantly lower than historical years due in part to the continued
impact of the pandemic on customer demand.

Our origination mix continues to shift towards a servicing / facilitation model
for bank partners from a direct origination model. Total net originations by our
bank partners increased to 90.6% for the year ended December 31, 2021, from
65.0% for the year ended December 31, 2020.

In addition, our net originations saw an increase in the percentage of
originations of new loans compared to refinanced loans as customer demand began
to return from weakness due to the onset of the COVID-19 pandemic in 2020
coupled with increased automation, which drove a higher conversion of
applications to funded loans. Total net originations of new loans as percentage
of total loans increased to 46.2% for the year ended December 31, 2021 from
42.8% for the year ended December 31, 2020.

Closing of receivables


Ending receivables are defined as the unpaid principal balances of both on- and
off-balance sheet loans at the end of the reporting period. The following table
presents ending receivables as of December 31, 2021 and 2020 (in thousands):

                                                              Change
                           2021           2020            $             %
Ending receivables      $ 337,529      $ 275,670      $ 61,859        22.4  %



Ending receivables increased to $337.5 million as of December 31, 2020 from
$275.7 million as of December 31, 2020. The 22.4% increase was primarily driven
by growth in originations in 2021. Off-balance sheet receivables were $19.7
million as of December 31, 2020, and there were no off-balance sheet receivables
as of December 31, 2021.

Average Yield

Average yield represents annualized interest income from the period as a percent
of average receivables. Receivables are defined as unpaid principal balances of
both on- and off-balance sheet loans. The following tables present average yield
for the years ended December 31, 2021 and 2020:

                            Year Ended December 31,            Change
                               2021                2020          %
Average yield                        126.9  %     128.1  %     (0.9) %



Average yield decreased to 126.9% for the year ended December 31, 2021, from
128.1% for the year ended December 31, 2020. The 0.9% decrease was driven by the
introduction of market-based offers in the fourth quarter, which offers
qualifying customers to receive a lower APR. Additionally, average yield was
driven lower by the expansion of the APR stepdown program through 2021, which
rewards eligible customers for making on-time payments by lowering their
interest rates in regular intervals.

Net charges as a percentage of average receivables


Net charge-offs as a percentage of average receivables represents annualized
total charge offs from the period less recoveries as a percent of average
receivables. Receivables are defined as unpaid principal of both on- and
off-balance sheet loans. Our charge-off policy is based on a review of
delinquent finance receivables on a loan by loan basis. Finance receivables are
charged off at the earlier of the time when accounts reach 90 days past due on a
recency basis, when we receive notification of a customer bankruptcy, or when
finance receivables are otherwise deemed uncollectible.

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The following tables show net write-offs as a percentage of annualized average receivables for the years ended December 31, 2021 and 2020:

                                                         Year Ended December 31,            Change
                                                             2021                2020         %
Net charge-offs as % of average receivables                         37.5  % 

35.6% 5.3%




Net charge-offs as a percentage of average receivables increased by 5.3% to
37.5% for the year ended December 31, 2021, from 35.6% for the year ended
December 31, 2020. The increase for the year ended December 31, 2021 reflects a
gradual return to normalization of credit towards pre-pandemic levels due to
reduced government stimulus from 2020 and the corresponding impact on our
customers' bank balance.

Marketing cost per financed loan


Marketing cost per funded loan represents marketing cost per funded loan for new
and refinance loans. This metric is the amount of direct marketing costs
incurred during a period divided by the number of loans originated during that
same period.
The following tables present marketing cost per funded loan for the years ended
December 31, 2021 and 2020:
                                            Year Ended December 31,         

Change

                                                2021                  2020        $           %
Marketing cost per funded loan      $         78                     $ 62   

$16 25.8%




Our marketing cost per funded loan increased to $78 for the year ended
December 31, 2021, from $62 for the year ended December 31, 2020. The 25.8%
increase for the year ended December 31, 2021 was driven by the higher mix of
new versus refinanced loans year over year as well as a higher Marketing Cost
per New Funded Loan as described in the following section.

Marketing cost per new loan financed


Marketing cost per new funded loan represents the amount of direct marketing
costs incurred during a period divided by the number of new loans originated
during that same period. The following tables present marketing cost per funded
loan (new) for the years ended December 31, 2021 and 2020:

                                                  Year Ended December 31,                   Change
                                                      2021                 2020         $           %
Marketing cost per new funded loan        $         254                   $ 

211 $43 20.4%




Our marketing cost per new funded loan increased to $254 for the year ended
December 31, 2021 from $211 for the year ended December 31, 2020. The 20.4%
increase for the year ended December 31, 2021 was driven by increased mix to the
partner channel from lower cost organic channels and higher spend in direct mail
as the company pulled back direct mail spending in 2020.

Automatic approval rate


Auto-approval rate is calculated by taking the number of approved loans that are
not decisioned by a loan advocate or underwriter (auto-approval) divided by the
total number of loans approved. The following table presents auto approval rate
as of December 31, 2021 and 2020:

                              Year Ended December 31,            Change
                                  2021                2020          %
Auto-approval rate                       60.0  %     25.7  %     133.4  %


Auto-approval rate increased by 133.4% as of December 31, 2021 to 60.0%, from 25.7% to December 31, 2020through the continued application of algorithmic automation projects that streamline the frictional steps of the origination process.

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Sales and Servicing Cost per Loan Sales and Servicing cost per loan is
calculated by taking the total servicing costs, which include customer center
salaries, underwriting and reporting costs, and payment processing fees, divided
by the average amount of outstanding loans during that period. The following
tables present servicing cost per loan for the years ended December 31, 2021 and
2020:

                                               Year Ended December 31,                  Change
                                                   2021                 2020         $          %
Sales and servicing cost per loan      $         159                   $ 

148 $11 7.4%



Our servicing cost per loan increased by $11 for the year ended December 31,
2021 compared to the year ended December 31, 2020 due to the increase in
underwriting costs and payment processing fees tied to the increase in
originations. Due to improvements in auto-approval rates, which drove scale to
the business, the percentage growth in sales and servicing costs per loan of
7.4% for the year ended December 31, 2021 were significantly lower than total
net origination growth of 23.1% for the year ended December 31, 2021.

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RESULTS OF OPERATIONS

Comparison of years ended December 31, 2021 and 2020


The following table presents our consolidated results of operations for the
years ended December 31, 2021 and 2020 (in thousands, except per number of
shares and share data).

                                                        Year Ended December 31,                             Change
                                                        2021                   2020                $                    %
Interest and loan related income, gross
(a)                                             $     349,029              $ 322,165          $  26,864                    8.3  %
Other income                                            1,539                    789                750                   95.1
  Interest, loan related, and other
income                                                350,568                322,954             27,614                    8.6
Amortization of loan origination costs                      -                (31,940)            31,940                 (100.0)
  Total revenue                                       350,568                291,014             59,554                   20.5
Total provision                                          (929)               (90,787)            89,858                  (99.0)
Change in fair value of finance
receivables                                           (85,960)                     -            (85,960)                     -
  Net revenue                                         263,679                200,227             63,452                   31.7
Expenses                                              206,422                122,711             83,711                   68.2
  Income from operations                               57,257                 77,516            (20,259)                 (26.1)
Gain on forgiveness of Paycheck
Protection Program loan                                 6,444                      -              6,444                      -
Change in fair value of warrant liability              26,405                      -             26,405                      -
  Income before income taxes                           90,106                 77,516             12,590                   16.2
Provision for income taxes                               (311)                     -               (311)                     -
  Net income                                           89,795              $  77,516          $  12,279                   15.8  %
Less: net income attributable to
noncontrolling interest                                64,241

Net income attributable to Opfi Inc. $25,554


Earnings per share attributable to OppFi
Inc.: (b)
Earnings per common share:
  Basic                                         $        1.93              $       -
  Diluted                                       $        1.93              $       -
Weighted average common shares
outstanding:
  Basic                                                   13,218,119                  -
  Diluted                                                 13,227,049                  -

(a) Loan-related income mainly consists of insufficient fund fees, which are not material and were waived during the first quarter of 2021. Interest income related to financial receivables accounted for under the fair value option are included in “Interest and loan income, net” in the Consolidated Statements of Income. (b) Prior to the reverse recapitalization, all net income was attributable to the non-controlling interest. For periods prior to July 20, 2021earnings per share have not been calculated, as net earnings before the Business Combination are entirely attributable to OppFi-LLC.




Total Revenue

Total revenue consists mainly of revenue earned from interest on receivables
from outstanding loans based only on the interest method, as well as
amortization of loan origination costs in previous periods. We also earn revenue
from referral fees related primarily to our turn-up program, which represented
less than 0.5 % of total revenue for the year ended December 31, 2021.

Total revenue increased by $59.6 million, or 20.5%, to $350.6 million for the
year ended December 31, 2021 from $291.0 million for the year ended December 31,
2020. This increase was due to the removal of the amortization of loan
origination costs as a result of the election of the fair value option in 2021
as well as receivables growth in 2021 . Under the fair value option, loan
origination costs related to the origination of installment loans are expensed
when incurred and are no longer recognized as a part of total revenue.

Change in fair value and total provision


Commencing on January 1, 2021, we elected the fair value option on the OppLoan
installment product. To derive the fair value, we generally utilize discounted
cash flow analyses that factor in estimated losses and prepayments over the
estimated duration of the underlying assets. Loss and prepayment assumptions are
determined using historical loss data and include appropriate consideration of
recent trends and anticipated future performance. Future cash flows are
discounted using a rate of return that
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we believe a market participant would require based on the risk characteristics
of the loans. We did not elect the fair value option on our SalaryTap and OppFi
Card finance receivables as these products launched in November 2020 and August
2021, respectively, and inputs for fair value are not yet determined.
Accordingly, the related finance receivables are carried at amortized cost, net
of allowance for credit losses.

For the year ended December 31, 2021, change in fair value consists of gross
charge-offs incurred in the period, net of recoveries, plus the change in the
fair value on the installment loans portfolio. Change in fair value totaled
$86.0 million for the year ended December 31, 2021,which was comprised of $103.5
million of net charge-offs, partially offset by a fair market value adjustment
of $17.6 million. The fair value adjustment had a positive impact due to the
increase in receivables in the period and an increase in the fair value mark.
The fair value mark improved due to an increase in the remaining life of the
portfolio driven by a younger portfolio from origination growth in the period,
as well as an increase in the weighted average interest rate of the portfolio
driven by the higher mix of bank partner originated loans and a lower volume of
customers on assistance programs.

For the year ended December 31, 2021, total provision consists of gross
charge-offs incurred in the period, net of recoveries, plus the change in the
allowance for credit losses for our SalaryTap and OppFi Card products. For the
year ended December 31, 2020, total provision consists of gross charge-offs
incurred in the period, net of recoveries, plus the change in the allowance for
credit losses for the OppLoan product as this was the only product for the
Company during 2020 and the Company utilized incurred credit loss application
method prior to electing the fair value option on January 1, 2021. Starting
January 1, 2021, our provision for future losses is based on estimated credit
loss application whereby it reserves for life of loan losses.

Net revenue


Net revenue is equal to total revenue less the change in fair value and less
total provision costs. Total net revenue increased by $63.5 million, or 31.7%,
to $263.7 million for the year ended December 31, 2021 from $200.2 million for
the year ended December 31, 2020. This increase was attributable to the removal
of the amortization of loan origination costs from total revenue as a result of
the election of the fair value option in 2021 and growth in receivables from the
prior year.

Expenses

Expenses includes salaries and employee benefits, interest expense and amortized
debt issuance costs, servicing costs, direct marketing costs, technology costs,
depreciation and amortization, professional fees and other expenses.

Expenses increased by $83.7 million, or 68.2%, to $206.4 million for the year
ended December 31, 2021, from $122.7 million for the year ended December 31,
2020. This was primarily due to higher marketing costs due to higher
originations, an increase in salaries and employee benefits related to
additional headcount, technology infrastructure costs and professional fees
related to investments to support the company's augmentation of internal
controls, operational risk and compliance functions, insurance expenses as the
company transitioned to becoming a public entity, and the impact of the 2021
election of fair value option. As a result of the election of the fair value
option, loan origination costs, including direct marketing costs and payment
processing fees related to the origination of the OppLoan product, are
recognized as expenses when incurred and are no longer recognized as an offset
to total revenue.

Income from Operations

Income from operations is the difference between net revenue and expenses. Total
income from operations decreased by $20.3 million, or 26.1%, to $57.3 million
for the year ended December 31, 2021, from $77.5 million for the year ended
December 31, 2020.

Other income (expenses)


Other income for the year ended December 31, 2021 included the gain from
forgiveness of an unsecured loan of $6.4 million in connection with the Paycheck
Protection Program ("PPP") Loan. Additionally, other income included the change
in fair value of the warrant liability in the amount of $26.4 million. This
warrant liability arose with respect to warrants issued in connection with the
initial public offering of FGNA and is subject to re-measurement at each balance
sheet date.

Income Before Income Tax

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Income before income tax is the difference between net revenue and expenses.
Income before income tax increased by $12.6 million, or 16.2%, to $90.1 million
for the year ended December 31, 2021, from $77.5 million for the year ended
December 31, 2020.

Income tax


OppFi Inc. recorded a provision for income taxes of $0.3 million for the year
ended December 31, 2021 and no expense for the year ended December 31, 2020. As
noted above, OppFi-LLC is treated as a partnership and is not subject to income
taxes; prior to the consummation of the Business Combination on July 20, 2021,
there were no taxes attributable to OppFi Inc. as OppFi-LLC was the only
reportable entity.

Net revenue

Net income increased by $12.3 millioni.e. 15.8%, to $89.8 million for the year ended December 31, 2021 from $77.5 million for the year ended December 31, 2020.

Net income attributable to Opfi Inc.


Net income attributable to OppFi Inc. was $25.6 million for the year ended
December 31, 2021. Net income attributable to OppFi Inc. represents the income
solely attributable to stockholders of OppFi Inc. for the year ended
December 31, 2021. Prior to the consummation of the Business Combination on July
20, 2021, there was no income attributable to OppFi Inc. as OppFi-LLC was the
only reportable entity.

NON-GAAP FINANCIAL MEASURES

We believe that the provision of non-GAAP financial measures in this report,
including Fair Value Pro Forma information, Adjusted Revenue, Adjusted Basic and
Diluted EPS, Adjusted EBITDA (and margin thereof), and Adjusted Net Income (and
margin thereof) can provide useful measures for period-to-period comparisons of
our business and useful information to investors and others in understanding and
evaluating our operating results. However, non-GAAP financial measures are not
calculated in accordance with United States GAAP measures, should not be
considered an alternative to any measure of financial performance calculated and
presented in accordance with GAAP, and may not be comparable to the non-GAAP
financial measures of other companies.

Pro forma fair value


On January 1, 2021, we elected the fair value option for our OppLoan product.
Accordingly, the related finance receivables are carried at fair value in the
consolidated balance sheets and the changes in fair value are included in the
consolidated statements of operations. To derive the fair value, OppFi generally
utilizes discounted cash flow analyses that factor in estimated losses and
prepayments over the estimated duration of the underlying assets. Loss and
prepayment assumptions are determined using historical loss data and include
appropriate consideration of recent trends and anticipated future performance.
Future cash flows are discounted using a rate of return that OppFi believes a
market participant would require. Accrued interest and fees are included in
"Finance receivables" in the consolidated balance sheets. Interest income is
included in "Interest and loan related income, net" in the consolidated
statements of operations. We have adjusted 2020 financials based on applying the
fair value option in order to provide comparability to 2021 financials.

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                                                                       Year Ended December 31,                                        Variance
                                               2021                                        2020                                           %
                                                                                         Fair Value          Fair Value Pro
(in thousands, unaudited)                   As Reported           As Reported           Adjustments              Forma

Interest, loan related, and other
income                                    $    350,568          $    291,014          $      31,940          $   322,954                     8.6  %
Total provision                                   (929)              (90,787)                90,787                    -                       -
Fair value adjustments (a)                     (85,960)                    -               (104,028)            (104,028)                  (17.4)
Net revenue                                    263,679               200,227                 18,699              218,926                    20.4
Expenses
Sales and marketing                             52,622                15,333                 22,510               37,843                    39.1
Customer operations                             40,260                33,697                  4,482               38,179                     5.5
Technology, products, and analytics             27,442                19,745                      -               19,745                    39.0
General, administrative, and other              61,842                32,708                      -               32,708                    89.1
Total expenses before interest
expense                                        182,166               101,483                 26,992              128,475                    41.8
Interest expense (b)                            24,256                21,228                      -               21,228                    14.3
Income from operations                          57,257                77,516                 (8,293)              69,223                   (17.3)
Gain on forgiveness of Paycheck
Protection Program loan                          6,444                     -                      -                    -                       -
Change in fair value of warrant
liability                                       26,405                     -                      -                    -                       -
  Income before income taxes                    90,106                77,516                 (8,293)              69,223                    30.2
Provision for income taxes                        (311)                    -                      -                    -                       -
  Net income                                    89,795          $     77,516          $      (8,293)         $    69,223                    29.7  %
Less: net income attributable to
noncontrolling interest                         64,241
  Net income attributable to OppFi
Inc.                                      $     25,554

(a) Fair value adjustment of $104 million includes the net allocations of $89.6 million and a Fair Market Value Adjustment of $14.4 million due to lower receivables and a lower fair market value rating due to the COVID-19 pandemic. (b) Includes debt amortization costs.




Adjusted Revenue

Adjusted revenue is a non-GAAP financial measure defined as our total revenue,
as reported, adjusted for the impact of amortization of loan origination costs.
Under the fair value option, loan origination costs related to the origination
of installment loans are expensed when incurred and are no longer recognized as
a part of total revenue. We believe that adjusted revenue is an important
measure because it allows management, investors, and our board of directors to
evaluate and compare our revenue for period-to-period comparisons of our
business, as it removes the effect of differing accounting methodologies.

                                                   Year Ended December 31,           Variance
(in thousands, unaudited)                            2021               2020            %
Total revenue                                $     350,568           $ 291,014        20.5   %
Amortization of loan origination costs                   -              31,940           -
Adjusted revenue                             $     350,568           $ 322,954         8.6   %


Adjusted net income and adjusted EBITDA


Adjusted Net Income is a non-GAAP measure defined as our GAAP net income,
adjusted for the impact of our election of the fair value option, further
adjusted to eliminate the effect of certain items as shown below as well as
adjusting taxes for comparison purposes. We believe that Adjusted Net Income is
an important measure because it allows management, investors, and our board of
directors to evaluate and compare our operating results from period-to-period by
making the adjustments described below.

Adjusted EBITDA is a non-GAAP measure defined as our net income adjusted and adjusted for the items shown below, including taxes, depreciation and amortization and interest expense. We believe Adjusted EBITDA is an important measure because it allows management, investors and our Board of Directors to assess and compare our operating results for the period.

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to-period by making the adjustments described below. In addition, it provides a
useful measure for period-to-period comparisons of our business, as it removes
the effect of taxes, certain non-cash items, variable charges, and timing
differences.

                                                              Year Ended December 31,                     Variance
(in thousands, except share and per share data)
Unaudited                                                     2021                   2020                     %
Net income                                            $      89,795              $   77,516                      15.8  %
Provision for income taxes                                      311                       -                         -
FV adjustments                                                    -                  (8,293)                   (100.0)
Debt issuance cost amortization                               2,310                   1,945                      18.8
Other addback and one-time expense(a)                        (8,452)                  2,439                    (446.5)
Adjusted EBT                                                 83,964                  73,607                      14.1
Less: pro forma taxes(b)                                    (18,145)                (18,402)                     (1.4)
Adjusted net income                                          65,819                  55,205                      19.2
Pro forma taxes(b)                                           18,145                  18,402                      (1.4)
Depreciation and amortization                                10,282                   6,732                      52.7
Interest expense                                             21,946                  19,284                      13.8
Business (non-income) taxes                                     665                   1,527                     (56.5)
Loss on disposition of equipment                                  6                       -                         -
Adjusted EBITDA                                       $     116,863              $  101,150                      15.5  %

Adjusted basic EPS: (c)                               $        0.78              $        -
Weighted average adjusted basic shares:                         84,465,109                   -
Adjusted diluted EPS: (c)                             $        0.78              $        -
Weighted average adjusted diluted shares:                       84,474,039                   -

(a) For the year ended December 31, 2021, other addback and one-time expense of ($8.5 million) included a ($26.4
million) addback due to the change in fair value of the warrant liabilities, a ($6.4 million) addback due to the gain on
forgiveness of PPP Loan, and a $24.4 million impact to the G&A line item in expenses comprised of: $6.6 million in
one-time expenses related to the Business Combination, $3.0 million in profit interest and stock compensation, $4.2
million in the change in fair value of warrant units outstanding prior to Business Combination, and $10.6 million in
other one-time expenses.
(b) Assumes a tax rate of 25% for the year ended December 31, 2020 and a 21.61% tax rate after, reflecting the U.S.
federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison
with other publicly traded companies.
(c) Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the
periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination
was attributable entirely to OppFi-LLC.





Adjusted Shares as Reflected in Adjusted Basic and Diluted Earnings Per Share

                                                            Year Ended December 31,
(unaudited)                                                2021                    2020

Weighted average Class A common shares outstanding 13,218,119

             -

Weighted average Class V voting shares outstanding 96,746,990

             -
Elimination of earnouts at period end                   (25,500,000)                    -
Weighted average adjusted basic shares                    84,465,109                    -
Dilutive impact of unvested restricted stock units             8,930                    -
Weighted average adjusted diluted shares                  84,474,039                    -



                                             Year Ended December 31,
(unaudited)                                    2021              2020

Adjusted net income (in thousands) $65,819 $55,205
Weighted average of adjusted basic shares $84,465,109 $ – Adjusted core EPS:

                      $          0.78      $      -



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                                               Year Ended December 31,
(unaudited)                                      2021              2020

Adjusted net income (in thousands) $65,819 $55,205
Weighted average adjusted diluted shares $84,474,039 $ – Adjusted diluted EPS:

                      $          0.78      $      -




Condensed Balance Sheets

Comparison of years ended December 31, 2021 and 2020


The following table presents our condensed balance sheet as of December 31, 2021
and 2020 (in thousands):

                                                     Year Ended December 31,                              Change
                                                     2021                   2020                  $                    %
Assets
Cash and restricted cash                     $      62,362              $   45,657          $   16,705                  36.6  %
Finance receivables at fair value                  383,890                       -             383,890                     -
Finance receivables at amortized cost,
net                                                  4,220                 222,243            (218,023)                (98.1)
Other assets                                        51,634                  17,943              33,691                 187.8
Total assets                                 $     502,106              $  285,843          $  216,263                  75.7  %
Liabilities and stockholders' equity /
members' equity
Other liabilities                            $      58,967              $   28,406          $   30,561                 107.6  %
Total debt                                         274,021                 158,105             115,916                  73.3
Warrant liability                                   11,240                       -              11,240                     -
Total liabilities                                  344,228                 186,511             157,717                  84.6
Total stockholders'equity / members'
equity                                             157,878                  99,332              58,546                  58.9
Total liabilities and stockholders'
equity /members' equity                      $     502,106              $  285,843          $  216,263                  75.7  %



Total cash and restricted cash increased by $16.7 million as of December 31,
2021 compared to December 31, 2020, driven by free cash flow from operations as
well as increased borrowings under the Atalaya Credit Agreement and higher
utilization of senior debt to finance receivables growth, transaction expenses,
and tax distribution. Finance receivables as of December 31, 2021 increased
compared to December 31, 2020 due to higher unpaid on-balance sheet principal
balances as well as the election of the fair value option in 2021. Other assets
as of December 31, 2021 increased by $33.7 million compared to December 31,
2020, driven by the addition of a deferred tax asset of $25.6 million related to
the Business Combination, as well as $5.1 million largely consisting of prepaid
expenses and $4.1 million of property, equipment and capitalized technology
costs, partially offset by $1.1 million of debt issuance costs.

Other liabilities increased by $30.6 million driven by a tax receivable
agreement liability in connection with the business combination with a balance
of $23.3 million as of December 31, 2021. Total debt increased by $115.9 million
driven by an increase in utilization of leverage facilities of $49.3 million and
a $24.8 million net impact of the corporate credit facility refinancing, offset
by $6.4 million of loan forgiveness of the PPP loan. Total equity increased by
$58.5 million driven by net income of $89.8 million and impact of adoption of
the fair value method of accounting of $69.4 million, partially offset by net
distributions and transaction related adjustments to equity.

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CASH AND CAPITAL RESOURCES

To date, funds from operating income and our ability to secure loan commitments have provided us with the liquidity needed to fund our operations.

The maturities of our funding facilities are staggered over three years to minimize refinancing risk.

The following table shows our unrestricted cash and unused debt as of
December 31, 2021 (in thousands):

                         December 31, 2021       December 31, 2020
Unrestricted cash       $           25,064      $           25,601
Undrawn debt            $          158,100      $          338,108



As of December 31, 2021, we had $25.1 million in unrestricted cash, a decrease
of $0.5 million from December 31, 2020. As of December 31, 2021, we had an
additional $158.1 million of unused debt capacity under our financing facilities
for future availability, representing a 38 % overall undrawn capacity, a
decrease from $338.1 million as of December 31, 2020. The reduction in undrawn
debt was due to funding of receivables growth, transaction expenses related to
the Business Combination, and tax distributions covering the full year 2020 and
2021 annual estimates. Including total financing commitments of $411 million,
and cash on the balance sheet of $62.4 million, we had approximately $473
million in funding capacity as of December 31, 2021.

We believe that our unrestricted cash, undrawn debt and funds from operating
income will be sufficient to meet our liquidity needs for at least the next 12
months from the date of this Annual Report. Our future capital requirements will
depend on multiple factors, including our revenue growth, aggregate receivables
balance, interest expense, working capital requirements, cash provided by and
used in operating, investing and financing activities and capital expenditures.

To the extent our unrestricted cash balances, funds from operating income and
funds from undrawn debt are insufficient to satisfy our liquidity needs in the
future, we may need to raise additional capital through equity or debt financing
and may not be able to do so on terms acceptable to it, if at all. If we are
unable to raise additional capital when needed, our results of operations and
financial condition could be materially and adversely impacted.


Cash flow


The following table presents cash provided by (used in) operating, investing and
financing activities during the year ended December 31, 2021 and 2020 (in
thousands):

                                                         Year Ended December 31,                             Change
                                                         2021                   2020                $                    %
Net cash provided by operating activities        $     167,346              $ 192,112          $ (24,766)               (12.9)  %
Net cash used in investing activities                 (199,470)               (98,312)          (101,158)              (102.9)
Net cash provided by (used in) financing
activities                                              48,829                (84,122)           132,951                158.0
Net increase in cash and restricted cash         $      16,705              $   9,678          $   7,027                 72.6   %



Operating Activities

Net cash provided by operating activities was $167.3 million for the year ended
December 31, 2021. This was a decrease of $24.8 million when compared to net
cash provided by operating activities of $192.1 million for the year ended
December 31, 2020. Cash provided by operating activities decreased due to higher
expenses in 2021, driven by higher marketing costs due to higher originations,
as well as an increase in salaries and employee benefits, and increased
investment in technology infrastructure.

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Investing activities


Net cash used in investing activities was $199.5 million for the year ended
December 31, 2021. This was an increase of $101.2 million when compared to net
cash used in investing activities of $98.3 million for the year ended
December 31, 2020, due to higher finance receivables originated and acquired,
partially offset by higher finance receivables repaid.

Fundraising activities


Net cash provided by financing activities was $48.8 million for the year ended
December 31, 2021. This was an increase of $133.0 million when compared to net
cash used in financing activities of $84.1 million for the year ended
December 31, 2020, primarily due to an increase in net advances in borrowings,
partially offset by an increase in member distributions and capitalized
transaction costs.



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Financing modalities


Our corporate credit facilities consist of term loans and revolving loan
facilities that we have drawn on to finance our operations and for other
corporate purposes. These borrowings are generally secured by all the assets of
OppFi-LLC that have not otherwise been sold or pledged to secure our structured
finance facilities, such as assets belonging to certain of the special purpose
entity subsidiaries of OppFi-LLC ("SPEs"). In addition, we, through our SPEs,
have entered into warehouse credit facilities to partially finance the
origination of loans by us on our platform or the purchase of participation
rights in loans originated by our bank partners through our platform, which
credit facilities are secured by the loans or participation rights. The
following is a summary of OppFi's borrowings as of December 31, 2021 and 2020
(in thousands):


                                                                                                                                Interest Rate as of
                                                             Borrowing           December 31,           December 31,            December 31, 2021,                     Maturity
          Purpose                     Borrower(s)             Capacity               2021                   2020                  Except as Noted                        Date
                                  Opportunity Funding
Secured borrowing payable         SPE II, LLC               $  38,500          $      22,443          $      16,025                   15.00%                              -         (1)
Senior debt
Revolving line of credit          OppFi-LLC                 $       -          $           -          $       5,000                   LIBOR plus 2.50% (2) (3)     February 2022
                                  Opportunity Funding
Revolving line of credit          SPE III, LLC                175,000                119,000                 59,200                   LIBOR plus 6.00% (3)         January 2024
                                  Opportunity Funding
                                  SPE V, LLC;
                                  Opportunity Funding
Revolving line of credit          SPE VII, LLC                 75,000                 45,900                 24,222                   LIBOR plus 7.25% (3)         April 2024
                                  Opportunity Funding
Revolving line of credit          SPE VI, LLC                  50,000                 30,600                 16,148                   LIBOR plus 7.25% (3)         April 2023
                                  Opportunity Funding
                                  SPE IV, LLC;
                                  SalaryTap Funding
Revolving line of credit          SPE, LLC                     45,000                  7,500                 12,506                   LIBOR plus 3.85% (3)         February 2024
Total revolving lines of
credit                                                        345,000                203,000                117,076
Term loan, net                    OppFi-LLC                    50,000                 48,578                 14,650                  LIBOR plus 10.00% (3)         March 2025
Total senior debt                                           $ 395,000          $     251,578          $     131,726
Subordinated debt                 OppFi-LLC                 $       -          $           -          $       4,000                   14.00%           (2)         December 2023
Other debt                        OppFi-LLC                 $       -          $           -          $       6,354                    1.00%           (4)         April 2022



(1) Maturity date extended indefinitely until borrowing capacity is depleted
(2) Interest rate as of 12/31/2020 and for the subsequent period thru and until
loan was repaid
(3) Subject to customary LIBOR replacement provisions as set forth below in
"Financing Agreements."
(4) Interest rate as of 12/31/2020 and for the subsequent period thru and until
loan was forgiven
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Here is an analysis of our current credit facilities.

Amended and Updated Program Agreement with Midtown Madison Management, LLC and fund of Atalaya Capital Management (Opportunity Funding SPE II, LLC)


OppFi-LLC and Opportunity Funding SPE II, LLC, a wholly owned subsidiary of
OppFi-LLC ("SPE II"), are parties to an Amended and Restated Program Agreement,
originally entered into on August 1, 2017 (as amended to date, the "Program
Agreement"), with Midtown Madison Management, LLC, as purchaser agent
("Purchaser Agent") for funds of Atalaya Capital Management ("Program
Purchasers"). Pursuant to the terms of the Program Agreement and related
participation purchase and sale agreements, the Program Purchasers have agreed
to purchase from SPE II up to $165.0 million of 97.5% participation interests
in: (i) finance receivables directly originated by OppFi-LLC and acquired by SPE
II and (ii) participation rights in the economic interests of finance
receivables originated by OppFi-LLC's bank partners on our platform and acquired
by SPE II. Pursuant to the terms of the Program Agreement, the Program
Purchasers earn a preferred return of 15% on the participation interests
purchased and a performance fee after the preferred return has been satisfied.

SPE II has certain repurchase obligations with respect to participation
interests purchased by the Program Purchasers if representations and warranties
made by SPE II with respect thereto are not accurate when made. Pursuant to a
servicing agreement, OppFi-LLC has agreed to service the finance receivables and
participation rights, as applicable, purchased by SPE II and the participation
interests therein purchased by the Program Purchasers. The obligations of SPE II
under the Program Agreement are secured by substantially all of the assets of
SPE II.

The Purchaser Agent may at any time refuse to purchase participation interests
pursuant to the Program Agreement, provided that following such a refusal, SPE
II will have the right to terminate the Program Agreement at any time and for
any reason, in its sole discretion, upon giving five business days notice to the
Purchaser Agent.

The Program Agreement contains certain customary representations and warranties
and affirmative and negative covenants, including minimum tangible net worth and
liquidity and performance metrics related to the participation interests
purchased by the Program Purchasers, and provides for certain events of default,
including, but not limited to, a cross-default on certain other debt obligations
and bankruptcy or insolvency events, subject to customary cure periods, as
applicable.

Senior Secured Multiple Draw Term Loan Facility with Midtown Madison Management, LLC and fund of Atalaya Capital Management


OppFi-LLC is party to that certain Senior Secured Multi-Draw Term Loan Facility
with Midtown Madison Management, LLC as agent for Atalaya Special Opportunities
Fund VII LP (together with the other affiliated funds that became lenders party
thereto, the "Atalaya Lenders"), originally entered into on November 9, 2018 (as
amended to date, the "Atalaya Term Loan Facility"). The Atalaya Term Loan
Facility provides for maximum term loan commitments by the Atalaya Lenders of up
to $50 million, substantially all of which has been drawn by OppFi-LLC.

The Atalaya Term Loan Facility bears interest at the one-month LIBOR rate plus
10%, subject to a LIBOR floor of 2.00%, payable monthly in arrears. The Atalaya
Term Loan Facility provides that following the date of a public statement of the
cessation of publication of all tenors of LIBOR (subject to an early opt-in
election), LIBOR shall be replaced as a benchmark rate in the Atalaya Term Loan
Facility with term SOFR (or another alternative rate if term SOFR is not able to
be determined), with such adjustments to cause the new benchmark rate to be
economically equivalent to LIBOR at the time of the LIBOR cessation.

OppFi-LLC's obligations under the Atalaya Term Loan Facility are secured by all
of OppFi-LLC's assets, other than the assets and equity interests of the SPEs,
and are guaranteed by all of its subsidiaries, other than the SPEs.

The Atalaya Term Loan Facility is subject to a borrowing base and various
financial covenants, including maximum consolidated debt to EBITDA ratio and
minimum consolidated fixed charge coverage ratio and liquidity. Outstanding
obligations under the Atalaya Term Loan Facility may be prepaid beginning on
September 30, 2022, subject to prepayment premiums. In addition, OppFi-LLC is
subject to certain mandatory prepayment requirements in the event its borrowings
under the Atalaya Term Loan Facility exceed its borrowing base. The Atalaya Term
Loan Facility contains certain customary representations and warranties and
affirmative and negative covenants, including with respect to dividends and
other restricted payments. Outstanding obligations under the Atalaya Term Loan
Facility, including unpaid principal and interest, are due on March 30, 2025
unless there is an earlier event of default such as bankruptcy, default on
interest payments, a cross default on certain other debt obligations, or failure
to perform or observe covenants, at which point the obligations may become due
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sooner, and additional default interest shall be due in addition to any other amounts due and payable while such events of default are pending.


In connection with entering into the Atalaya Term Loan Facility and certain
amendments thereto, OppFi-LLC issued to Midtown Madison Management, LLC, as
agent for the Atalaya Lenders, warrants to purchase equity interests in
OppFi-LLC. These warrants were transferred to affiliates of the Atalaya Lenders
and were automatically exercised in connection with the Closing, and such
affiliates of the Atalaya Lenders became Members. In connection with the
execution of the OppFi A&R LLCA, such equity interests were recapitalized into
Retained OppFi Units representing less than 1% of the outstanding OppFi Units
immediately following the Closing.

Amended and Restated Revolving Credit Agreement with Ares Agent Services, LP
(Opportunity Funding SPE III, LLC)


OppFi-LLC, Opportunity Funding SPE III, LLC, a wholly owned subsidiary of
OppFi-LLC ("SPE III"), OppWin, LLC a wholly owned subsidiary of OppFi-LLC
("OppWin"), and the other credit parties and guarantors thereto, are parties to
an Amended and Restated Revolving Credit Agreement, originally entered into on
January 31, 2020 (as amended to date, the "Ares SPE III Credit Agreement"), with
Ares Agent Services, L.P., as administrative agent and collateral agent
("Ares"), and the lenders party thereto. The Ares SPE III Credit Agreement
provides for a senior secured asset-backed revolving credit facility with
maximum available borrowings for SPE III, as borrower, of $175 million.

Borrowings under the Ares SPE III Credit Agreement are secured by substantially
all of the assets of SPE III. Pursuant to receivables purchase agreements, SPE
III has agreed to purchase from OppFi-LLC and OppWin, as applicable, (i) finance
receivables directly originated by OppFi-LLC and (ii) participation rights in
the economic interests of finance receivables originated by OppFi-LLC's bank
partners on our platform. OppFi-LLC and OppWin have certain repurchase
obligations with respect to finance receivables or participation rights
purchased by SPE III if representations and warranties made by OppFi-LLC or
OppWin, as applicable, with respect thereto are not accurate when made. Pursuant
to a servicing agreement, OppFi-LLC has agreed to service the finance
receivables and participation rights, as applicable, purchased by SPE III.

Libor Rate Loans (as defined in the Ares SPE III Credit Agreement) bear interest
at a floating rate that is the greater of (i) 2.00% and (ii) one-month LIBOR,
plus 6.00% (subject to customary LIBOR replacement provisions), and Base Rate
Loans (as defined in the Ares SPE III Credit Agreement) bear interest at the
Base Rate (as defined in the Ares SPE III Credit Agreement), plus 6.00%. The
Ares SPE III Credit Agreement provides that if LIBOR is no longer available, a
broadly accepted comparable successor rate, including any adjustments thereto,
will be applied in lieu of LIBOR in a manner consistent with market practice to
maintain the then-current yield. Interest is payable monthly in arrears, and any
amounts due under the Ares SPE III Credit Agreement may be prepaid voluntarily
subsequent to its first anniversary upon notice to Ares, subject to the
borrowing base limitations and other customary conditions and further subject in
certain cases to prepayment premiums and minimum utilization penalties.
Borrowings under the Ares SPE III Credit Agreement are subject to a borrowing
base.

The Ares SPE III credit agreement must mature on January 31, 2024and all amounts unpaid thereunder are due on that date.


The Ares SPE III Credit Agreement contains certain customary representations and
warranties and affirmative and negative covenants, including with respect to
dividends and other restricted payments, various financial covenants, including
minimum adjusted tangible net worth, liquidity, earnings and maximum senior
leverage ratio, and performance metrics related to the finance receivables and
participation rights purchased by SPE III, and provides for certain events of
default, including, but not limited to, failure to pay any principal, interest
or other amounts when due, failure to perform or observe covenants,
cross-default on certain other debt obligations and bankruptcy or insolvency
events, subject to customary cure periods, as applicable. Amounts owed by
OppFi-LLC under the Ares SPE III Credit Agreement could be accelerated and
become immediately due and payable following the occurrence an event of default,
and additional default interest is due in addition to any other amounts owed and
payable while such events of default are ongoing.

Revolving credit agreement with BMO Harris Bank, North America. (Funding Opportunity SPE IV, LLC and SalaryTap SPE Funding, LLC)


OppFi-LLC, SPE IV, STF Borrower, OppWin, and the other credit parties and
guarantors thereto, are parties to the BMO Credit Agreement with BMO as
administrative agent and collateral agent, and the lenders party thereto. The
BMO Credit Agreement provides for a senior secured reserve-based revolving
credit facility with maximum available borrowings for SPE IV and STF Borrower,
as borrowers, of $45 million, which may be increased in accordance with the
terms thereof, and an accordion feature of $30 million.

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Borrowings under the BMO Credit Agreement are secured by substantially all of
the assets of SPE IV and STF Borrower, respectively. Pursuant to receivables
purchase agreements, SPE IV and STF Borrower have each agreed to purchase from
OppFi-LLC and OppWin, as applicable, (i) finance receivables directly originated
by OppFi-LLC and (ii) participation rights in the economic interests of finance
receivables originated by OppFi-LLC's bank partners on our platform. OppFi-LLC
and OppWin have certain repurchase obligations with respect to finance
receivables or participation rights purchased by SPE IV and STF Borrower if
representations and warranties made by OppFi-LLC or OppWin, as applicable, with
respect thereto are not accurate when made. Pursuant to a servicing agreement,
OppFi-LLC has agreed to service the finance receivables (including SalaryTap
receivables) and participation rights, as applicable, purchased by SPE IV and
STF Borrower, respectively.

Borrowings under the BMO Credit Agreement bear interest at a floating rate that
is the greater of (i) 0.50% and (ii) LIBOR plus 3.85%. Interest is payable
monthly in arrears, and any amounts due under the BMO Credit Agreement may be
prepaid voluntarily from time to time upon notice to BMO, subject to the
borrowing base limitations and other customary conditions and generally without
premium or penalty. Borrowings under the BMO Credit Agreement are subject to a
borrowing base. The BMO Credit Agreement provides that following the date of a
public statement of the cessation of publication of all tenors of LIBOR (subject
to an early opt-in election), LIBOR shall be replaced as a benchmark rate in the
BMO Credit Agreement with term SOFR (or another alternative rate if term SOFR is
not able to be determined), with such adjustments to cause the new benchmark
rate to be economically equivalent to LIBOR at the time of the LIBOR cessation.

The BMO Credit Agreement is scheduled to terminate on August 19, 2023, and all
outstanding amounts thereunder are due no later than six months following such
date.

The BMO Credit Agreement contains certain customary representations and
warranties and affirmative and negative covenants, including with respect to
dividends and other restricted payments, various financial covenants, including
minimum adjusted tangible net worth, liquidity, earnings and maximum senior
leverage ratio, and performance metrics related to the finance receivables and
participation rights purchased by SPE IV and STF Borrower, respectively, and
provides for certain events of default, including, but not limited to, failure
to pay any principal, interest or other amounts when due, failure to perform or
observe covenants, cross-default on certain other debt obligations and
bankruptcy or insolvency events, subject to customary cure periods, as
applicable. Amounts owed by OppFi-LLC under the BMO Credit Agreement could be
accelerated and become immediately due and payable following the occurrence an
event of default, and additional default interest is due in addition to any
other amounts owed and payable while such events of default are ongoing.

OppFi-LLC provided security for the obligations of SPE IV and the Borrower STF, respectively, under the BMO Credit Agreement.

Revolving credit agreement with Midtown Madison Management, LLC and fund of
Atalaya Capital Management (Funding Opportunity SPE V, LLC and Funding Opportunity SPE VII, LLC)


OppFi-LLC, SPE V, SPE VII, OppWin, and the other credit parties and guarantors
thereto, are parties to the Atalaya Credit Agreement, with Atalaya, and the
various funds of Atalaya Capital Management party thereto as lenders. The
Atalaya Credit Agreement provides for a senior secured reserve-based revolving
credit facility with maximum available borrowings for SPE V and SPE VII, as
borrowers, of $75 million, subject to certain requirements to borrow pro rata
from the Atalaya Credit Agreement and the Ares SPE VI Credit Agreement (as
defined below).

Borrowings under the Atalaya Credit Agreement are secured by substantially all
of the assets of SPE V and SPE VII, respectively. Pursuant to receivables
purchase agreements, SPE V and SPE VII have each agreed to purchase from
OppFi-LLC and OppWin, as applicable, (i) finance receivables directly originated
by OppFi-LLC and (ii) participation rights in the economic interests of finance
receivables originated by OppFi-LLC's bank partners on our platform. OppFi-LLC
and OppWin have certain repurchase obligations with respect to finance
receivables or participation rights purchased by SPE V and SPE VII,
respectively, if representations and warranties made by OppFi-LLC or OppWin, as
applicable, with respect thereto are not accurate when made. Pursuant to a
servicing agreement, OppFi-LLC has agreed to service the finance receivables
(including OppFi Card receivables) and participation rights, as applicable,
purchased by SPE V and SPE VII, respectively.

Libor Rate Loans (as defined in the Atalaya Credit Agreement) bear interest at a
floating rate that is the greater of (i) 2.25% and (ii) one-month LIBOR, plus
7.25%, and Base Rate Loans (as defined in the Atalaya Credit Agreement) bear
interest at the Base Rate (as defined in the Atalaya Credit Agreement), plus
7.25%. Interest is payable monthly in arrears, and any amounts due under the
Atalaya Credit Agreement may be prepaid voluntarily subsequent to its first
anniversary upon notice to Atalaya, subject to the borrowing base limitations
and other customary conditions and further subject in certain cases to
prepayment premium and minimum utilization penalties. The Atalaya Credit
Agreement provides that if LIBOR is no longer available, the administrative
agent of the Atalaya Credit Agreement may select a comparable replacement index
applied to similarly situated
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borrowers under similar credit facilities in good faith in its sole discretion
upon written notice. Borrowings under the Atalaya Credit Agreement are subject
to a borrowing base.

The Atalaya Credit Agreement expires on April 15, 2024and all amounts unpaid thereunder are due on that date.


The Atalaya Credit Agreement contains certain customary representations and
warranties and affirmative and negative covenants, including with respect to
dividends and other restricted payments, various financial covenants, including
minimum adjusted tangible net worth, liquidity, earnings and maximum senior
leverage ratio, and performance metrics related to the finance receivables and
participation rights purchased by SPE V and SPE VII, respectively, and provides
for certain events of default, including, but not limited to, failure to pay any
principal, interest or other amounts when due, failure to perform or observe
covenants, cross-default on certain other debt obligations and bankruptcy or
insolvency events, subject to customary cure periods, as applicable. Amounts
owed by OppFi-LLC under the Atalaya Credit Agreement could be accelerated and
become immediately due and payable following the occurrence an event of default,
and additional default interest is due in addition to any other amounts owed and
payable while such events of default are ongoing.

Revolving credit agreement with Ares Agent Services, LP (Funding Opportunity SPE VI, LLC)


OppFi-LLC, Opportunity Funding SPE VI, LLC, a wholly owned SPV subsidiary of
OppFi-LLC ("SPE VI"), OppWin, and the other credit parties and guarantors
thereto, are parties to a Revolving Credit Agreement, originally entered into on
April 15, 2019 (as amended to date, the "Ares SPE VI Credit Agreement"), with
Ares and the lenders party thereto. The Ares SPE VI Credit Agreement provides
for a senior secured asset-backed revolving credit facility with maximum
available borrowings for SPE VI, as borrower, of $50 million, subject to certain
requirements to borrow pro rata from the Ares SPE VI Credit Agreement and the
Atalaya Credit Agreement.

Borrowings under the Ares SPE IV Credit Agreement are secured by substantially
all of the assets of SPE VI. Pursuant to receivables purchase agreements, SPE VI
has agreed to purchase from OppFi-LLC and OppWin, as applicable, (i) finance
receivables directly originated by OppFi-LLC and (ii) participation rights in
the economic interests of finance receivables originated by OppFi-LLC's bank
partners on our platform. OppFi-LLC and OppWin have certain repurchase
obligations with respect to finance receivables or participation rights
purchased by SPE VI if representations and warranties made by OppFi-LLC or
OppWin, as applicable, with respect thereto are not accurate when made. Pursuant
to a servicing agreement, OppFi-LLC has agreed to service the finance
receivables and participation rights, as applicable, purchased by SPE VI.

Libor Rate Loans (as defined in the Ares SPE VI Credit Agreement bear interest
at a floating rate that is the greater of (i) 2.25% and (ii) one-month LIBOR,
plus 7.25%, and Base Rate Loans (as defined in the Ares SPE VI Credit Agreement)
bear interest at the Base Rate (as defined in the Ares SPE VI Credit Agreement),
plus 7.25%. The Ares SPE VI Credit Agreement provides that if LIBOR is no longer
available, a broadly accepted comparable successor rate, including any
adjustments thereto, will be applied in lieu of LIBOR in a manner consistent
with market practice to maintain the then-current yield. Interest is payable
monthly in arrears, and any amounts due under the Ares SPE VI Credit Agreement
may be prepaid voluntarily subsequent to its first anniversary upon notice to
Ares, subject to the borrowing base limitations and other customary conditions
and further subject in certain cases to prepayment premium and minimum
utilization penalties. Borrowings under the Ares SPE VI Credit Agreement are
subject to a borrowing base.

The Ares SPE VI credit agreement must end on April 15, 2023and all amounts unpaid thereunder are due on that date.


The Ares SPE VI Credit Agreement contains certain customary representations and
warranties and affirmative and negative covenants, including with respect to
dividends and other restricted payments, various financial covenants, including
minimum adjusted tangible net worth, liquidity, earnings and maximum senior
leverage, ratio, and performance metrics related to the finance receivables and
participation rights purchased by SPE VI, and provides for certain events of
default, including, but not limited to, failure to pay any principal, interest
or other amounts when due, failure to perform or observe covenants,
cross-default on certain other debt obligations and bankruptcy or insolvency
events, subject to customary cure periods, as applicable. Amounts owed by
OppFi-LLC under the Ares SPE VI Credit Agreement could be accelerated and become
immediately due and payable following the occurrence of an event of default, and
additional default interest is due in addition to any other amounts owed and
payable while such events of default are ongoing.

LIBOR Transition

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In July 2017, the FCA, which regulates LIBOR, announced its intention to stop
compelling banks to submit rates for the calculation of LIBOR after 2021. On
December 31, 2021, IBA, the administrator of LIBOR, announced plans to cease
publication for all USD LIBOR tenors (except the one- and two-week tenors, which
ceased on December 31, 2021) on June 30, 2023. The Federal Reserve Board and the
Federal Reserve Bank of New York have identified the SOFR as its preferred
alternative to LIBOR in derivatives and other financial contracts. Each of our
credit facilities provides for the replacement of LIBOR as discussed above in
"Financing Arrangements." We do not expect the replacement of LIBOR to have any
effect on our liquidity or the financial terms of our credit facilities

Off-balance sheet arrangements


In Texas and Ohio, OppFi-LLC previously arranged for consumers to obtain finance
receivable products from independent third-party lenders as part of the Credit
Access Business and Credit Service Organization programs (collectively, the "CSO
Program"). For the consumer finance receivable products originated by the
third-party lenders under the CSO Program, the lenders were responsible for
providing the criteria by which the consumer's application was underwritten and,
if approved, determining the amount of the finance receivable. When a consumer
executed an agreement with OppFi-LLC under the CSO Program, OppFi-LLC agreed,
for a fee payable to OppFi-LLC by the consumer, to provide certain services to
the consumer, one of which was to guarantee the consumer's obligation to repay
the finance receivable obtained by the consumer from the third-party lender if
the consumer failed to do so.

On April 23, 2019, the Company discontinued the CSO Program in Ohio and no new
finance receivables were originated through this program after that date. As of
December 31, 2021, there were no finance receivables remaining under the CSO
Program in Ohio.

At March 19, 2021the Company terminated the CSO program in Texas. From
December 31, 2021there were no outstanding financial claims under the CSO program in Texas.

The guarantees represented an obligation to purchase specific overdue financial claims secured by a collateral account established in favor of the respective lenders.


As of December 31, 2020, the unpaid principal balance of off-balance sheet
active finance receivables which were guaranteed by the Company was $19.7
million. Upon the election of the fair value option for installment loan finance
receivables on January 1, 2021, the Company released the reserve for repurchase
liabilities as the income rights and related losses were included in the
valuation of finance receivables at fair value, which was included in the fair
value adjustment to retained earnings. As of December 31, 2020, the Company
recorded a reserve for repurchase liabilities of $4.2 million, which represents
the liability for estimated losses on finance receivables guaranteed. The
Company used a similar methodology for determining the reserve for repurchase
liabilities as it does for calculating the allowance for credit losses on
finance receivables.

Under the terms of the CSO Program, the Company was required to maintain a
restricted cash balance equal to the guaranty, which is determined and settled
on a weekly basis. On a daily basis, a receivable and/or payable is recorded to
recognize the outstanding settlement balance. As of December 31, 2020, the
restricted cash balance held in a federally insured bank account related to the
CSO Program was $3.1 million. As of December 31, 2020, there was a payable
balance of $0.8 million related to settlement which was included in accrued
expenses on the consolidated balance sheets.
Critical Accounting Policies and Estimates

The preparation of consolidated financial statements in accordance with GAAP
requires OppFi to make estimates and judgments that affect reported amounts of
assets, liabilities, income and expenses and related disclosures. OppFi bases
estimates on historical experience and on various other assumptions that are
believed to be reasonable under current circumstances, results of which form the
basis for making judgments about the carrying value of certain assets and
liabilities that are not readily available from other sources. Estimates are
evaluated on an ongoing basis. To the extent that there are differences between
OppFi's estimates and actual results, OppFi's future financial statement
presentation, financial condition, results of operations and cash flows will be
affected.

Accounting policies, as described in detail in the notes to the Company's
consolidated financial statements, are an integral part of the OppFi's
consolidated financial statements. A thorough understanding of these accounting
policies is essential when reviewing OppFi's reported results of operations and
financial position. Management believes that the critical accounting
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policies and estimates listed below require OpFi to make difficult, subjective or complex judgments about matters that are inherently uncertain.

-Valuation of installment financing receivables recognized at fair value on option;

-Determination of the provision for credit losses; and

-Valuation of public and private vouchers


Fair value is the price that could be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants as of
the measurement date. Fair value is determined using different inputs and
assumptions based upon the instrument being valued. Where observable market
prices from transactions for identical assets or liabilities are not available,
we identify market prices for similar assets or liabilities. If observable
market prices are unavailable or impracticable to obtain for any such similar
assets or liabilities, we look to other modeling techniques, which often
incorporate unobservable inputs which are inherently subjective and require
significant judgment. Fair value estimates requiring significant judgments are
determined using various inputs developed by management with the appropriate
skills, understanding and knowledge of the underlying asset or liability to
ensure the development of fair value estimates is reasonable. In certain cases,
our assessments, with respect to assumptions market participants would make, may
be inherently difficult to determine, and the use of different assumptions could
result in material changes to these fair value measurements.

Installment Finance Receivables: To derive the fair value, the Company generally
utilizes discounted cash flow analyses that factor in estimated losses and
prepayments over the estimated duration of the underlying assets. Loss and
prepayment assumptions are determined using historical loss data and include
appropriate consideration of recent trends and anticipated future performance.
Future cash flows are discounted using a rate of return that the Company
believes a market participant would require.

The following describes the key inputs to discounted cash flow analyzes that require significant judgment:


•Discount rate: The discount rate utilized in the discounted cash flow analyses
reflects our estimate of the rate of return that a market participant would
require when investing in financial instruments with similar risk and return
characteristics.

•Servicing cost: The servicing cost percentage that is applied to portfolio's
expected cash flows reflects our estimate of the amount we would incur to
service the underlying assets over the assets' remaining lives. Servicing costs
are derived from an internal analysis of our cost structure considering the
characteristics of our installment finance receivables and have been benchmarked
against observable information on comparable assets in the marketplace.

•Remaining life: Remaining life is the time weighted average of the estimated
principal payments divided by the principal balance at the measurement date. The
timing of estimated principal payments is impacted by scheduled amortization of
loans, charge-offs, and prepayments.

•Default rate: The default rate reflects our estimate of principal payments that
will not be repaid over the remaining life of an installment finance receivable.
Charge-off expectations are developed using the historical performance of our
installment finance receivable portfolio but also incorporate discretionary
adjustments based on our expectations of future credit performance.

•Prepayment rate: The prepayment rate is the estimated percentage of principal
payments that will occur earlier than contractually required over the remaining
life of an installment finance receivable. Prepayments accelerate the timing of
principal repayment and reduce interest payments. Prepayment rates in our
discounted cash flow models are developed using historical results but may also
incorporate discretionary adjustments based on our expectations of future
performance.

Warrants: OppFi holds public and private placement warrants that are recorded as
a liability on the consolidated balance sheets. These liabilities are subjected
to remeasurement at each balance sheet date and are recorded at fair value. We
value Public Warrants at market price based on a quoted price in the
marketplace. For Private Placement Warrants, Private Units Warrants and
Underwriter Warrants, we estimate the fair value using a Monte Carlo simulation
model. This model utilizes unobservable inputs, including expected volatility,
risk-free interest rate, and expected term. These inputs may be influenced by
several factors that can change significantly and are difficult to predict.
These estimates are inherently risky and require significant judgment on the
part of management.

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Allowance for Credit Losses: Effective, January 1, 2021, OppFi adopted ASU
2016-13, replacing their incurred loss impairment methodology with the current
expected credit losses methodology for their SalaryTap and OppFi Card finance
receivables. The allowance for credit losses represents management's best
estimate of current expected credit losses over the life of these portfolios.
Estimating credit losses requires judgment in determining loan specific
attributes impacting the borrower's ability to repay contractual obligations.
The allowance for credit losses is assessed at each balance sheet date and
adjustments are recorded in the provision for credit losses on finance
receivables. The allowance is currently estimated using market data for
determining anticipated credit losses of its SalaryTap and OppFi Card finance
receivables until sufficient internal data exists. Management believes its
allowance is adequate to absorb the expected life of loan credit losses as of
the balance sheet date. Actual losses incurred may differ materially from
management's estimates.

Changes in these estimates, that are likely to occur from period to period, or
the use of different estimates that the Company could have reasonably used in
the current period, would have a material impact on the Company's financial
position, results of operations or liquidity.

© Edgar Online, source Previews

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Pintec Technology (PT) stock soared 53.3% despite the lack of news. here is https://saar-new-media.com/pintec-technology-pt-stock-soared-53-3-despite-the-lack-of-news-here-is/ Thu, 10 Mar 2022 13:55:39 +0000 https://saar-new-media.com/pintec-technology-pt-stock-soared-53-3-despite-the-lack-of-news-here-is/ Key points: Pintec Technology (PT) stock price climbed 53.3% today despite the lack of news. The Chinese fintech offers multiple financial services to companies. PT shares look attractive at current prices, and the recent rally is great. Pintec Technology Holdings Ltd – ADR (NASDAQ: PT) stock price soared 53.3% today despite a lack of announcements […]]]>

Key points:

  • Pintec Technology (PT) stock price climbed 53.3% today despite the lack of news.
  • The Chinese fintech offers multiple financial services to companies.
  • PT shares look attractive at current prices, and the recent rally is great.

Pintec Technology Holdings Ltd – ADR (NASDAQ: PT) stock price soared 53.3% today despite a lack of announcements from the Chinese fintech that serves enterprise clients.

Shares of the company had been under a wave of buying pressure since yesterday, when it closed up 13.6%. Although the exact driver of the rally is unclear, the recent rally could significantly benefit the company if it persists.

Also read: The best financial stocks to buy right now.

Pintec Technology provides financing solutions to other businesses in the area of ​​SME Loans, Business Loans, Installment Loans and Personal Loans. The Company also provides services such as operating Financial RPA Centers of Excellence on behalf of clients.

The fintech company also offers robo-advisory services to more than 70 funds. The services are based on Renminbi-denominated assets while offering over 4,000 services to over 290,000 retail clients who have processed transactions worth over 8.4 billion Renminbi.

The above are just a few of the services offered by Pintec Technology Holdings, indicating that the company has significant long-term potential given the uncertain business environment created by the COVID-19 pandemic.

Pintec also operates a fund supermarket, a trading system for public fund products. Therefore, recent investor interest in the company may be warranted given the strong product line it offers in its home market.

More than 7.32 million PT shares had changed hands at the time of writing as investors bought the shares of the Chinese fintech company, and I wouldn’t blame them.

PT shares look quite attractive at current prices, given that they have a market capitalization of 420.68 million based on Wednesday’s closing price. The recent rally also means that the company’s shares could easily break above the $1 mark.

Shares of Pintec Technology last traded above the $1 mark on January 23-24, 2022 before falling back, and its current price does not meet Nasdaq listing requirements.

Investors are hoping the recent rally will push PT shares back above the $1 mark. Meanwhile, those looking to buy the shares should know that they traded as low as $15 in the past on the day they listed on Nasdaq on October 25, 2018.

*This is not investment advice. Always exercise due diligence before making investment decisions.

Pintec Technology share price.

Pintec Technology share price 10-03-2022
Source: commercial view

Pintec Technology’s stock price climbed 53.32% to trade at $0.7318, up from Wednesday’s closing price of $0.4773.

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REGIONAL MANAGEMENT CORP. MANAGEMENT REPORT ON FINANCIAL POSITION AND RESULTS OF OPERATIONS. (Form 10-K) https://saar-new-media.com/regional-management-corp-management-report-on-financial-position-and-results-of-operations-form-10-k/ Fri, 04 Mar 2022 22:18:05 +0000 https://saar-new-media.com/regional-management-corp-management-report-on-financial-position-and-results-of-operations-form-10-k/ The following discussion and analysis should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements and the related notes that appear in Part II, Item 8, "Financial Statements and Supplementary Data" in this Annual Report on Form 10-K. These discussions contain forward-looking statements that reflect […]]]>
The following discussion and analysis should be read in conjunction with, and is
qualified in its entirety by reference to, our audited consolidated financial
statements and the related notes that appear in Part II, Item 8, "Financial
Statements and Supplementary Data" in this Annual Report on Form 10-K. These
discussions contain forward-looking statements that reflect our current
expectations and that include, but are not limited to, statements concerning our
strategies, future operations, future financial position, future revenues,
projected costs, expectations regarding demand and acceptance for our financial
products, growth opportunities and trends in the market in which we operate,
prospects, and plans and objectives of management. The words "anticipates,"
"believes," "estimates," "expects," "intends," "may," "plans," "projects,"
"predicts," "will," "would," "should," "could," "potential," "continue," and
similar expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these identifying words. We
may not actually achieve the plans, intentions, or expectations disclosed in our
forward-looking statements, and you should not place undue reliance on our
forward-looking statements. Our forward-looking statements involve risks and
uncertainties that could cause actual results, events, and/or performance to
differ materially from the plans, intentions, and expectations disclosed in the
forward-looking statements. Such risks and uncertainties include, without
limitation, the risks set forth in Part I, Item 1A, "Risk Factors" in this
Annual Report on Form 10-K. The COVID-19 pandemic may also magnify many of these
risks and uncertainties. The forward-looking information we have provided in
this Annual Report on Form 10-K pursuant to the safe harbor established under
the Private Securities Litigation Reform Act of 1995 should be evaluated in the
context of these factors. Forward-looking statements speak only as of the date
they were made, and we undertake no obligation to update or revise such
statements, except as required by the federal securities laws.

Overview


We are a diversified consumer finance company that provides installment loan
products primarily to customers with limited access to consumer credit from
banks, thrifts, credit card companies, and other lenders. As of December 31,
2021, we operated under the name "Regional Finance" in 350 branch locations in
13 states across the United States, serving 460,600 active accounts. Most of our
loan products are secured, and each is structured on a fixed-rate, fixed-term
basis with fully amortizing equal monthly installment payments, repayable at any
time without penalty. We source our loans through our omni-channel platform,
which includes our branches, centrally-managed direct mail campaigns, digital
partners, retailers, and our consumer website. We operate an integrated branch
model in which nearly all loans, regardless of origination channel, are serviced
through our branch network. This provides us with frequent contact with our
customers, which we believe improves our credit performance and customer
loyalty. Our goal is to consistently grow our finance receivables and to soundly
manage our portfolio risk, while providing our customers with attractive and
easy-to-understand loan products that serve their varied financial needs.

Our products include small, large and retail installment loans:

• Small loans (?$2,500) – Starting the December 31, 2021we had 269.5 thousand

outstanding short-term loans, representing $445.0 million net

debt financing. This included 137,200 small convenience loans

checks, representative $197.5 million in net financial claims.

• Large loans (>$2,500) – Starting the December 31, 2021we had 184.1 thousand

significant installment loans outstanding, representing $969.4 million net

debt financing. This included 15,700 high convenience loans

checks, representative $49.2 million in net financial claims.

• Personal Loans – As of December 31, 2021we had 6.7 thousand retail purchases

outstanding loans, representing $10.5 million in net financial claims.

• Optional insurance products: we offer optional payments and guarantees

protection insurance to our direct lending customers.



Small and large installment loans are our core loan products and will be the
drivers of our future growth. Our primary sources of revenue are interest and
fee income from our loan products, of which interest and fees relating to small
and large installment loans are the largest component. In addition to interest
and fee income from loans, we derive revenue from optional insurance products
purchased by customers of our direct loan products.

For more information on our business activities, see Part I, point 1, “Activities”.

Regional management company | 2021 Annual Report on Form 10-K | 46 ————————————————- ——————————-

Impact of the COVID-19 pandemic on the outlook


The COVID-19 pandemic has resulted in economic disruption and uncertainty. At
the outset of the pandemic, during the second quarter of 2020, we experienced a
decrease in demand. Since that time, our loan growth has steadily increased. As
of December 31, 2021, our net finance receivables were $1.4 billion, $290.0
million higher than as of December 31, 2020. Future consumer demand remains
subject to the uncertainty around the extent and duration of the pandemic.

Due to the pandemic, we have experienced the temporary closure of some branches in 2021 due to company-initiated quarantine measures. However, all of our branches have been open for the majority of 2021.


Throughout the pandemic, we have employed a data-driven approach to managing our
risk, which is essential during periods of market volatility. We manage this
risk through our custom risk and response scorecards, analysis of early payment
activity, and detailed geographic and customer segmentation to ensure that
incremental direct mail loan volume is capable of absorbing credit losses at two
to three times our historical levels while still providing positive contribution
margin.

We proactively adjusted our underwriting criteria at the start of the pandemic
in 2020 to adapt to the new environment and continue to originate loans with
appropriately enhanced lending criteria. As we progress through the pandemic and
acquire additional data, we continue to update and sharpen our underwriting
standards, paying close attention to those geographies and industries that have
been most affected by the virus and related economic disruption. As of December
31, 2021, our allowance for loan losses included $14.4 million of reserves
related to the expected economic impact of the COVID-19 pandemic. Our
contractual delinquency as a percentage of net finance receivables increased to
6.0% as of December 31, 2021, up from 5.3% as of December 31, 2020. We believe
this increase corresponds to the decrease in pandemic-related government
stimulus. Going forward, we may experience changes to the macroeconomic
assumptions within our forecast and changes to our credit loss performance
outlook, both of which could lead to further changes in our allowance for credit
losses, reserve rate, and provision for credit losses expense.

We proactively diversified our funding over the past few years and continue to
maintain a strong liquidity profile. During 2021, we (i) successfully closed a
$248.7 million asset-backed securitization with a three-year revolving period
and weighted-average coupon ("WAC") of 2.08% (replacing a prior transaction with
a two-year revolving period and WAC of 4.87%); (ii) enhanced our warehouse
facility capacity to $300.0 million by amending and restating our previously
existing warehouse facility and closing two new warehouse credit facilities;
(iii) successfully closed asset-backed securitizations of $200.0 million, and
$125.0 million, respectively, each with five-year revolving periods. As of
December 31, 2021, we had $209.7 million of immediate liquidity, comprised of
unrestricted cash on hand and immediate availability to draw down cash from our
revolving credit facilities. Our liquidity position has improved $15.3 million
since December 31, 2020. In addition, we ended 2021 with $556.8 million of
unused capacity on our revolving credit facilities (subject to the borrowing
base). We believe our liquidity position provides us substantial runway to fund
our growth initiatives and to support the fundamental operations of our
business.

We continue to rely more heavily on online operations for customer access,
including remote loan closings. On the digital front, we continue to build and
expand upon our end-to-end online and mobile origination capabilities for new
and existing customers, along with additional digital servicing functionality.
Combined with remote loan closings, we believe that these omni-channel sales and
service capabilities will expand the market reach of our branches, increase our
average branch receivables, and improve our revenues and operating efficiencies,
while at the same time increasing customer satisfaction.

The extent to which the pandemic will ultimately impact our business and
financial condition will depend on future events that are difficult to forecast,
including, but not limited to, the duration and severity of the pandemic
(including as a result of waves of outbreak or variant strains of the virus),
the success of actions taken to contain, treat, and prevent the spread of the
virus, and the speed at which normal economic and operating conditions return
and are sustained.

Factors Affecting Our Results of Operations

Our business is driven by several factors affecting our revenues, costs and results of operations, including the following:


Quarterly Information and Seasonality. Our loan volume and contractual
delinquency follow seasonal trends. Demand for our small and large loans is
typically highest during the second, third, and fourth quarters, which we
believe is largely due to customers borrowing money for vacation,
back-to-school, and holiday spending. Loan demand has generally been the lowest
during the first quarter, which we believe is largely due to the timing of
income tax refunds. Delinquencies generally reach their lowest point in the
first half of the year and rise in the second half of the year. The 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, we experience seasonal fluctuations in our operating results.
However, changes in borrower assistance programs and customer access


Regional management company | 2021 Annual Report on Form 10-K | 47 ————————————————- ——————————-

external economic stimulus measures related to the COVID-19 pandemic have impacted our typical seasonal trends in loan volume and delinquency.


Growth in Loan Portfolio. The revenue that we derive from interest and fees is
largely driven by the balance of loans that we originate and purchase. Average
net finance receivables were $1.2 billion in 2021 and $1.1 billion in 2020. We
source our loans through our branches, direct mail program, retail partners,
digital partners, and our consumer website. Our loans are made almost
exclusively in geographic markets served by our network of branches. Increasing
the number of loans per branch and growing our state footprint allows us to
increase the number of loans that we are able to service. In April 2021, we
opened our first branch in Illinois, our twelfth state, and in September 2021,
we opened our first branch in Utah, our thirteenth state. In February 2022, we
opened our first branch in Mississippi, our fourteenth state. We expect to enter
at least an additional five states by the end of 2022. After assessing our
legacy branch network for clear opportunities to consolidate operations into
larger branches within close geographic proximity, we closed 31 branches during
the fourth quarter of 2021. This branch optimization is consistent with our
omni-channel strategy and builds upon our recent successes in entering new
states with a lighter branch footprint, while still providing customers with
best-in-class service. We plan to add additional branches in new and existing
states where it is favorable for us to conduct business.

Product Mix. We are exposed to different credit risks and charge different
interest rates and fees with respect to the various types of loans we offer. Our
product mix also varies to some extent by state, and we may further diversify
our product mix in the future. The interest rates and fees vary from state to
state, depending on the competitive environment and relevant laws and
regulations.

Asset Quality and Allowance for Credit Losses. Our results of operations are
highly dependent upon the credit quality of our loan portfolio. The credit
quality of our loan portfolio is the result of our ability to enforce sound
underwriting standards, maintain diligent servicing of the portfolio, and
respond to changing economic conditions as we grow our loan portfolio. Our
allowance for credit losses estimate changed on January 1, 2020, as we adopted
the CECL accounting model. See Note 2, "Significant Accounting Policies" of the
Notes to Consolidated Financial Statements in Part II, Item 8, "Financial
Statements and Supplementary Data," for more information on our allowance for
credit losses.

The primary underlying factors driving the provision for credit losses for each
loan type are our underwriting standards, the general economic conditions in the
areas in which we conduct business, loan portfolio growth, and the effectiveness
of our collection efforts. In addition, the market for repossessed automobiles
at auction is another underlying factor that we believe influences the provision
for credit losses for loans collateralized by automobiles. We monitor these
factors, and the amount and past due status of all loans, to identify trends
that might require us to modify the allowance for credit losses.

Interest Rates. Our costs of funds are affected by changes in interest rates, as
the interest rates that we pay on certain of our credit facilities are variable.
As a component of our strategy to manage the interest rate risk associated with
future interest payments on our variable-rate debt, we have purchased interest
rate cap contracts. As of December 31, 2021, we held interest rate cap contracts
with an aggregate notional principal amount of $550.0 million.

Operating costs. Our financial results are impacted by operating costs and head office functions. These costs are included in general and administrative expenses in our Consolidated Statements of Income.

Components of operating results

Interest and commission income. Our interest and fee income consists primarily of interest earned on outstanding loans. Accumulation of interest income on financial claims is suspended when an account becomes overdue for 90 days. If the account is charged off, accrued interest income is reversed as a reduction to interest and commission income.


Most states allow certain fees in connection with lending activities, such as
loan origination fees, acquisition fees, and maintenance fees. Some states allow
for higher fees while keeping interest rates lower. Loan fees are additional
charges to the customer and generally are included in the annual percentage rate
shown in the Truth in Lending disclosure that we make to our customers. The fees
may or may not be refundable to the customer in the event of an early payoff,
depending on state law. Fees are recognized as income over the life of the loan
on the constant yield method.

Insurance Income, Net. Our insurance operations are a material part of our
overall business and are integral to our lending activities. Insurance income,
net consists primarily of earned premiums, net of certain direct costs, from the
sale of various optional payment and collateral protection insurance products
offered to customers who obtain loans directly from us. Insurance income, net
also includes the earned premiums and direct costs associated with the non-file
insurance that we purchase to protect us from


Regional management company | 2021 Annual Report on Form 10-K | 48 ————————————————- ——————————-



credit losses where, following an event of default, we are unable to take
possession of personal property collateral because our security interest is not
perfected. We do not sell insurance to non-borrowers. Direct costs included in
insurance income, net are claims paid, claims reserves, ceding fees, and premium
taxes paid. We do not allocate to insurance income, net, any other head office
or branch administrative costs associated with management of insurance
operations, management of captive insurance company, marketing and selling
insurance products, legal and compliance review, or internal audits.

As reinsurer, we maintain cash reserves for life insurance claims in an amount
determined by the unaffiliated insurance company. As of December 31, 2021, the
restricted cash balance for these cash reserves was $19.9 million. The
unaffiliated insurance company maintains the reserves for non-life claims.

Other Income. Our other income consists primarily of late charges assessed on
customers who fail to make a payment within a specified number of days following
the due date of the payment. In addition, fees for extending the due date of a
loan, returned check charges, commissions earned from the sale of an auto club
product, and interest income from restricted cash are included in other income.

Provision for Credit Losses. Provisions for credit losses are charged to income
in amounts that we estimate as sufficient to maintain an allowance for credit
losses at an adequate level to provide for lifetime expected credit losses on
the related finance receivable portfolio. Credit loss experience, current
conditions, reasonable and supportable economic forecasts, delinquency of
finance receivables, loan portfolio growth, the value of underlying collateral,
and management's judgment are factors used in assessing the overall adequacy of
the allowance and the resulting provision for credit losses. Our provision for
credit losses fluctuates so that we maintain an adequate credit loss allowance
that reflects lifetime expected credit losses for each finance receivable type.
Changes in our delinquency and net credit loss rates may result in changes to
our provision for credit losses. Substantial adjustments to the allowance may be
necessary if there are significant changes in forecasted economic conditions or
loan portfolio performance.

General and Administrative Expenses. Our financial results are impacted by the
costs of operations and head office functions. Those costs are included in
general and administrative expenses within our consolidated statements of
income. Our general and administrative expenses are comprised of four
categories: personnel, occupancy, marketing, and other. We measure our general
and administrative expenses as a percentage of average net finance receivables,
which we refer to as our operating expense ratio.

Our personnel expenses are the largest component of our general and administrative expenses and consist primarily of salaries and wages, overtime, contract labor, relocation costs, incentives, benefits and related social charges associated with all of our operations and head office employees.


Our occupancy expenses consist primarily of the cost of renting our facilities,
all of which are leased, and the utility, depreciation of leasehold improvements
and furniture and fixtures, communication services, data processing, and other
non-personnel costs associated with operating our business.

Our marketing expenses consist primarily of costs associated with our direct
mail campaigns (including postage and costs associated with selecting
recipients), digital marketing, maintaining our consumer website, and some local
marketing by branches. These costs are expensed as incurred.

Other expenses consist primarily of legal, compliance, audit, and consulting
costs, as well as non-employee director compensation, amortization of software
licenses and implementation costs, electronic payment processing costs, bank
service charges, office supplies, software maintenance and support, and credit
bureau charges. We frequently experience fluctuations in other expenses as we
grow our loan portfolio and expand our market footprint. For a discussion
regarding how risks and uncertainties associated with the current regulatory
environment may impact our future expenses, net income, and overall financial
condition, see Part I, Item 1A, "Risk Factors."

Interest Expense. Our interest expense consists primarily of paid and accrued
interest for debt, unused line fees, and amortization of debt issuance costs on
debt. Interest expense also includes costs attributable to the change in the
fair value of interest rate caps.

Income Taxes. Income taxes consist of state and federal income taxes. Deferred
tax assets and liabilities are recognized for the future tax consequences
attributable to temporary differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bases.
Deferred tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The change in


Regional management company | 2021 Annual Report on Form 10-K | 49 ————————————————- ——————————-



deferred tax assets and liabilities is recognized in the period in which the
change occurs, and the effects of future tax rate changes are recognized in the
period in which the enactment of new rates occurs.

Operating results

The following table summarizes our results of operations, in dollars and as a percentage of average net financial claims:


                                                                      Year Ended December 31,
                                               2021                             2020                             2019
                                                      % of                             % of                             % of
                                                  Average Net                      Average Net                      Average Net
                                                    Finance                          Finance                          Finance
Dollars in thousands                Amount        Receivables        Amount        Receivables        Amount        Receivables
Revenue
Interest and fee income            $ 382,544               31.5 %   $ 335,215               31.2 %   $ 321,169               31.8 %
Insurance income, net                 35,482                2.9 %      28,349                2.6 %      20,817                2.1 %
Other income                          10,325                0.9 %      10,342                1.0 %      13,727                1.4 %
Total revenue                        428,351               35.3 %     373,906               34.8 %     355,713               35.3 %
Expenses
Provision for credit losses           89,015                7.3 %     123,810               11.5 %      99,611                9.9 %

Personnel                            119,833                9.9 %     109,560               10.2 %      94,000                9.3 %
Occupancy                             24,126                2.0 %      22,629                2.1 %      22,576                2.2 %
Marketing                             14,405                1.2 %      10,357                1.0 %       8,206                0.8 %
Other                                 37,150                3.0 %      33,770                3.1 %      32,202                3.3 %
Total general and administrative     195,514               16.1 %     176,316               16.4 %     156,984               15.6 %

Interest expense                      31,349                2.6 %      37,852                3.6 %      40,125                4.0 %
Income before income taxes           112,473                9.3 %      35,928                3.3 %      58,993                5.8 %
Income taxes                          23,786                2.0 %       9,198                0.8 %      14,261                1.4 %
Net income                         $  88,687                7.3 %   $  26,730                2.5 %   $  44,732                4.4 %

Information explaining the variations in our results of operations from one year to the next is provided on the following pages.

Comparison of December 31, 2021Vs December 31, 2020

The following discussion and table describe the changes in financial claims by product type:

• Small loans (?$2,500) – Outstanding small loans increased by $42.0 million,

i.e. 10.4%, at $445.0 million at December 31, 2021from $403.1 million at

December 31, 2020. The increase is the result of new growth initiatives,

improved demand for customer credit and increased marketing, partially offset by

the general transition of customers from small loans to large loans.

• Large loans (>$2,500) – Outstanding large loans increased by $254.1

million, or 35.5%, to $969.4 million at December 31, 2021from $715.2

       million at December 31, 2020. The increase was due to new growth
       initiatives, improved customer loan demand, increased marketing, and the
       transition of small loan customers to large loans.

• Car loans – Outstanding car loans decreased by $2.5 million,

i.e. 65.5%, at $1.3 million at December 31, 2021from $3.9 million at

December 31, 2020. We stopped providing car loans in November 2017

       to focus on growing our core loan portfolio.


Regional management company | 2021 Annual Report on Form 10-K | 50 ————————————————- ——————————-

• Retail Loans – Outstanding retail loans decreased $3.6 millioni.e. 25.2%,

       to $10.5 million at December 31, 2021, from $14.1 million at December 31,
       2020.


                                                             Net Finance Receivables by Product
                                                                                           YoY $           YoY %
Dollars in thousands                      December 31, 2021       December 31, 2020      Inc (Dec)       Inc (Dec)
Small loans                              $           445,023     $           403,062     $   41,961            10.4 %
Large loans                                          969,351                 715,210        254,141            35.5 %
Total core loans                                   1,414,374               1,118,272        296,102            26.5 %
Automobile loans                                       1,343                   3,889         (2,546 )         (65.5 )%
Retail loans                                          10,540                  14,098         (3,558 )         (25.2 )%
Total net finance receivables            $         1,426,257     $         1,136,259     $  289,998            25.5 %

Number of branches at period end                         350                     365            (15 )          (4.1 )%
Net finance receivables per branch       $             4,075     $             3,113     $      962            30.9 %


Comparison of the year ended December 31, 2021compared to the year ended
December 31, 2020


Net Income. Net income increased $62.0 million, or 231.8%, to $88.7 million in
2021, from $26.7 million in 2020. The increase was primarily due to an increase
in revenue of $54.4 million, a decrease in provision for credit losses of $34.8
million, and a decrease in interest expense of $6.5 million, offset by an
increase in general and administrative expenses of $19.2 million and an increase
in income taxes of $14.6 million.

Revenue. Total revenue increased $54.4 million, or 14.6%, to $428.4 million in
2021, from $373.9 million in 2020. The components of revenue are explained in
greater detail below.

Interest and Fee Income. Interest and fee income increased $47.3 million, or
14.1%, to $382.5 million in 2021, from $335.2 million in 2020. The increase was
primarily due to a 13.0% increase in average net finance receivables and a 0.3%
increase in average yield.

The following table presents the average net balance of financial receivables and the average yield of our loan products:

                              Average Net Finance Receivables for the Year Ended                           Average Yields for the Year Ended
                                                                             YoY %                                                                 YoY %
Dollars in thousands    December 31, 2021        December 31, 2020         Inc (Dec)         December 31, 2021         December 31, 2020         Inc (Dec)
Small loans             $          394,394       $          406,675               (3.0 )%                  38.2 %                    37.3 %              0.9 %
Large loans                        805,808                  642,085               25.5 %                   28.5 %                    27.9 %              0.6 %
Automobile loans                     2,422                    6,315              (61.6 )%                  13.0 %                    14.0 %             (1.0 )%
Retail loans                        11,259                   18,791              (40.1 )%                  18.3 %                    18.2 %              0.1 %
Total interest and
fee yield               $        1,213,883       $        1,073,866               13.0 %                   31.5 %                    31.2 %              0.3 %

Small and large loan yields increased by 0.9% and 0.6%, respectively, in 2021 compared to 2020, primarily due to improved credit performance across the portfolio due to the underwriting crunch during the pandemic and our overall shift in mix towards higher credit quality customers, resulting in fewer loans in non-accumulation and fewer write-offs of accrued interest.


As a result of our focus on large loan growth over the last several years, the
large loan portfolio has grown faster than the rest of our loan products, and we
expect that this trend will continue in the future. Over time, large loan growth
will change our product mix, which will reduce our total interest and fee yield
percentage.


Regional management company | 2021 Annual Report on Form 10-K | 51 ————————————————- ——————————-



We continue to originate new loans with enhanced lending criteria. Demand for
our loan products has continued to recover as total originations increased to
$1.5 billion in 2021, from $1.1 billion in 2020. The following table represents
the principal balance of loans originated and refinanced:


                                                            Loans 

Created for the fiscal year ended

                                                                                           YoY $           YoY %
Dollars in thousands                      December 31, 2021       December 31, 2020      Inc (Dec)       Inc (Dec)
Small loans                              $           602,613     $           516,124     $   86,489            16.8 %
Large loans                                          856,699                 557,952        298,747            53.5 %
Retail loans                                           8,275                   9,201           (926 )         (10.1 )%
Total loans originated                   $         1,467,587     $         1,083,277     $  384,310            35.5 %

The following table summarizes the components of the increase in interest and commission income:


                                                         Components of 

Increase in interest and commission income

                                               Year Ended December 31, 2021 

Compared to the year ended December 31, 2020

                                                                        Increase (Decrease)
                                                                                        Volume &
Dollars in thousands                          Volume               Rate                   Rate                   Net
Small loans                                 $    (4,576 )       $     3,781         $           (114 )       $      (909 )
Large loans                                      45,737               3,530                      900              50,167
Automobile loans                                   (546 )               (64 )                     40                (570 )
Retail loans                                     (1,373 )                23                       (9 )            (1,359 )
Product mix                                       4,465              (4,066 )                   (399 )                 -

Total increase in interest and commission income $43,707 $3,204

         $            418         $    47,329


The $47.3 million increase in interest and fee income in 2021 compared to 2020
was primarily driven by growth of our average net finance receivables and
improved credit performance across the portfolio, which resulted in fewer loans
in non-accrual status and fewer interest accrual reversals. These benefits were
partially offset by the intended product mix shift toward large loans and the
portfolio composition shift toward higher credit quality customers with lower
interest rates due to the use of enhanced credit standards during the pandemic.

Insurance Income, Net. Insurance income, net increased $7.1 million, or 25.2%,
to $35.5 million in 2021, from $28.3 million in 2020. In both 2021 and 2020,
personal property insurance premiums represented the largest component of
aggregate earned insurance premiums, and life insurance claims expense
represented the largest component of direct insurance expenses.

The following table summarizes the components of insurance income, net:


                                                    Insurance Premiums and 

Direct expenditures for the year ended

                                                                                                 YoY $            YoY %
Dollars in thousands                      December 31, 2021         December 31, 2020            B(W)             B(W)
Earned premiums                          $            53,218       $            42,816       $      10,402           24.3 %
Claims, reserves, and certain direct
expenses                                             (17,736 )                 (14,467 )            (3,269 )        (22.6 )%
Insurance income, net                    $            35,482       $            28,349       $       7,133           25.2 %


Fiscal 2021 earned premiums increased by $10.4 million and claims, reserves, and
certain direct expenses increased by $3.3 million, in each case compared to
2020. The increase in earned premiums was primarily due to loan growth and
adjusted pricing. The increase in claims, reserves, and certain direct expenses
compared to 2020 was primarily due to increases in insurance claims expense and
ceding fees of $2.8 million and $0.6 million, respectively, offset by a $0.3
million decrease in reserves for expected insurance claims during 2021.

Other income. Other income from $10.3 million in 2021 was comparable to $10.3 million in 2020.


Provision for Credit Losses. Our provision for credit losses decreased $34.8
million, or 28.1%, to $89.0 million in 2021, from $123.8 million in 2020. The
decrease was due to a decrease in the allowance for credit losses of $18.4
million primarily due to the release of COVID-19 reserves in 2021 and a decrease
in net credit losses of $16.4 million compared to the prior-year period.


Regional management company | 2021 Annual Report on Form 10-K | 52 ————————————————- ——————————-



Allowance for Credit Losses. We evaluate delinquency and losses in each of our
loan products in establishing the allowance for credit losses. The following
table sets forth our allowance for credit losses compared to the related finance
receivables as of the end of the periods indicated:

                                                    Allowance for Credit Losses for the Year
                                                                      Ended
                                                      December 31,             December 31,
Dollars in thousands                                      2021                     2020
Beginning balance                                   $        150,000         $         62,200
Impact of CECL adoption                                            -                   60,100
COVID-19 reserve build (release)                             (16,000 )                 30,400
General reserve build (release) due to portfolio
change                                                        25,300                   (2,700 )
Ending balance                                      $        159,300         $        150,000
Allowance for credit losses as a percentage of
net finance receivables                                         11.2 %                   13.2 %


As of December 31, 2021, our allowance for credit losses included $14.4 million
of reserves related to the expected economic impact of the COVID-19 pandemic.
The allowance for credit losses included a net build of $25.3 million related to
portfolio growth and a base reserve release of $2.7 million during 2021 and
2020, respectively. We ran several macroeconomic stress scenarios, and our final
forecast assumes a resumption of normal unemployment rates at the end of 2022.
See Note 4, "Finance Receivables, Credit Quality Information, and Allowance for
Credit Losses" of the Notes to Consolidated Financial Statements in Part II,
Item 8, "Financial Statements and Supplementary Data," for additional
information regarding our allowance for credit losses.

Net Credit Losses. Net credit losses decreased $16.4 million, or 17.1%, to $79.7
million in 2021, from $96.1 million in 2020. The decrease was primarily due to
historically low delinquency levels. Net credit losses as a percentage of
average net finance receivables were 6.6% in 2021, compared to 8.9% in 2020. We
expect future increases to net credit losses as a percentage of average net
finance receivables as our delinquency rates rise toward more normalized levels.

Delinquency Performance. Our contractual delinquency as a percentage of net
finance receivables increased to 6.0% as of December 31, 2021, from 5.3% as of
December 31, 2020 as delinquency levels continued to normalize. Our credit
performance remains strong due to the quality and adaptability of our
underwriting criteria and the performance of our custom scorecards. We expect
contractual delinquency as a percentage of net finance receivables to continue
to rise towards more normalized levels in future periods.

The following tables include delinquency balances by aging category and by
product:

                                         Contractual Delinquency by Aging
Dollars in thousands               December 31, 2021           December 31, 2020
Current                         $ 1,237,165        86.7 %   $   990,467        87.2 %
1 to 29 days past due               104,201         7.3 %        85,342         7.5 %
Delinquent accounts:
30 to 59 days                        25,283         1.9 %        18,381         1.6 %
60 to 89 days                        20,395         1.4 %        14,955         1.3 %
90 to 119 days                       15,962         1.0 %        10,496         0.9 %
120 to 149 days                      12,466         0.9 %         9,085         0.8 %
150 to 179 days                      10,785         0.8 %         7,533         0.7 %
Total contractual delinquency   $    84,891         6.0 %   $    60,450         5.3 %
Total net finance receivables   $ 1,426,257       100.0 %   $ 1,136,259       100.0 %



                                        Contractual Delinquency by Product
Dollars in thousands               December 31, 2021           December 31, 2020
Small loans                     $    39,794          8.9 %   $    27,703        6.9 %
Large loans                          44,264          4.6 %        31,259        4.4 %
Automobile loans                         84          6.3 %           296        7.6 %
Retail loans                            749          7.1 %         1,192        8.5 %
Total contractual delinquency   $    84,891          6.0 %   $    60,450        5.3 %


Regional management company | 2021 Annual Report on Form 10-K | 53 ————————————————- ——————————-




General and Administrative Expenses. Our general and administrative expenses
increased $19.2 million, or 10.9%, to $195.5 million in 2021 from $176.3 million
in 2020. The absolute dollar increase in general and administrative expenses is
explained in greater detail below.

Personnel. The largest component of general and administrative expenses is
personnel expense, which increased $10.3 million, or 9.4%, to $119.8 million in
2021, from $109.6 million in 2020. We had several offsetting increases and
decreases in personnel expenses during 2021. Labor expense and incentive costs
increased $7.8 million and $7.4 million, respectively, compared to 2020.
Additionally, 2021 included branch optimization costs of $0.3 million.
Capitalized loan origination costs, which reduced personnel expenses, increased
by $1.8 million compared to the 2020 due to an increase in loans originated.
Additionally, 2020 included executive transition costs of $3.0 million and
severance expense related to workforce actions of $0.8 million.

Occupancy. Occupancy expenses increased $1.5 million, or 6.6%, to $24.1 million
in 2021, from $22.6 million in 2020. The increase was primarily due to costs
related to our branch optimization initiative of $1.1 million and an increase in
COVID-19 enhanced sanitation efforts of $0.2 million.

Marketing. Marketing expenses increased $4.0 million, or 39.1%, to $14.4 million
in 2021, from $10.4 million in 2020. The increase was primarily due to increased
activity in our direct mail campaigns and digital marketing to support growth
and abnormally low marketing spend in the second quarter of 2020. At the outset
of the pandemic during the second quarter of 2020, we temporarily paused direct
mail and digital marketing aimed at customer acquisition, before gradually
restarting our marketing campaigns in May 2020.

Other Expenses. Other expenses increased $3.4 million, or 10.0%, to $37.2
million in 2021, from $33.8 million in 2020, primarily due to increased
investment in digital and technological capabilities of $3.0 million.
Additionally, we often experience increases in other expenses including legal
and settlement expenses, external fraud, collections expense, bank fees, and
certain professional expenses as we grow our loan portfolio and expand our
market footprint.

Operating Expense Ratio. Our operating expense ratio decreased by 0.3% to 16.1%
during 2021 from 16.4% during 2020. Fiscal 2021 included a ratio increase of
0.1% related to branch optimization expenses of $1.6 million. Fiscal 2020
included non-operating expenses of $3.1 million of executive transition costs,
severance expense related to workforce actions of $0.8 million, and system
outage costs of $0.7 million which increased our operating expense ratio by 0.4%
in 2020.

Interest Expense. Interest expense on debt decreased $6.5 million, or 17.2%, to
$31.3 million in 2021, from $37.9 million in 2020. The decrease was primarily
due to favorable mark-to-market adjustments on interest rate caps of $2.7
million in 2021 compared to unfavorable mark-to-market adjustments on interest
rate caps of $0.3 million in 2020 and a decrease in our average cost of debt,
offset by an increase in the average balance of our debt facilities. The average
cost of our total debt decreased 1.60% to 3.59% in 2021, from 5.19% in 2020,
primarily reflecting the lower rate environment.

Income Taxes. Income taxes increased $14.6 million, or 158.6%, to $23.8 million
in 2021, from $9.2 million in 2020. The increase was primarily due to a $76.5
million increase in income before taxes compared to 2020. Our effective tax rate
decreased to 21.1% in 2021, compared to 25.6% in 2020. Fiscal 2021 was impacted
by tax benefits from the exercise and vesting of share-based awards and amended
state tax returns. The effective tax rate for 2020 was impacted by the margin
tax in Texas that was 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 was not correlated to income
before taxes.

Comparison of the year ended December 31, 2020compared to the year ended
December 31, 2019


For a comparison of our results of operations for the years ended December 31,
2020 and December 31, 2019, see Part II, Item 7, "Management's Discussion and
Analysis of Financial Condition and Results of Operations" of our Annual Report
on Form 10-K for the fiscal year ended December 31, 2020 (which was filed with
the SEC on February 25, 2021), which comparison is incorporated by reference
herein.

Cash and capital resources


Our primary cash needs relate to the funding of our lending activities and, to a
lesser extent, expenditures relating to improving our technology infrastructure
and expanding and maintaining our branch locations. We have historically
financed, and plan to continue to finance, our short- and long-term operating
liquidity and capital needs through a combination of cash flows from operations
and borrowings under our debt facilities, including our senior revolving credit
facility, revolving warehouse credit facilities, and asset-backed securitization
transactions, all of which are described below. We continue to seek ways to
diversify our


Regional management company | 2021 Annual Report on Form 10-K | 54 ————————————————- ——————————-



funding sources. As of December 31, 2021, we had a funded debt-to-equity ratio
(debt divided by total stockholders' equity) of 3.9 to 1.0 and a stockholders'
equity ratio (total stockholders' equity as a percentage of total assets) of
19.4%.

Cash and cash equivalents increased to $10.5 million as of December 31, 2021,
from $8.1 million as of December 31, 2020. As of December 31, 2021 and December
31, 2020 we had $199.2 million and $186.3 million, respectively, of immediate
availability to draw down cash from our revolving credit facilities. Our unused
capacity on our revolving credit facilities (subject to the borrowing base) was
$556.8 million and $438.1 million as of December 31, 2021 and 2020,
respectively. Our total debt increased to $1.1 billion as of December 31, 2021,
from $768.9 million as of December 31, 2020.

A summary of material future financial obligations requiring repayments to the December 31, 2021 is as follows:

                                                Future Material Financial Obligations by Period
                                               Next Twelve        Beyond Twelve
Dollars in thousands                             Months              Months              Total

Principal payments on debt securities $74,703 $1,033,250 $1,107,953
Interest payments on debt securities

                28,635              60,710            89,345
Operating lease obligations                           7,248              28,068            35,316
Total                                         $     110,586       $   1,122,028       $ 1,232,614

Based on projected cash flows, management believes that operating cash flows and our various financing alternatives will provide sufficient funding for debt maturities and operations over the next twelve months, as well as in the future.


From time to time, we have extended the maturity date of and increased the
borrowing limits under our senior revolving credit facility. While we have
successfully obtained such extensions and increases in the past, there can be no
assurance that we will be able to do so if and when needed in the future. In
addition, the revolving period maturities of our securitizations and warehouse
credit facilities (each as described below within "Financing Arrangements")
range from October 2022 to September 2026. There can be no assurance that we
will be able to secure an extension of the warehouse credit facilities or close
additional securitization transactions if and when needed in the future.

Redemption of shares and dividends.


In October 2020, we announced that our Board had authorized a stock repurchase
program allowing for the repurchase of up to $30.0 million of our outstanding
shares of common stock in open market purchases, privately negotiated
transactions, or through other structures in accordance with applicable federal
securities laws. The authorization was effective immediately and extended
through October 22, 2022. In May 2021, we completed this stock repurchase
program, repurchasing a total of 1.0 million shares pursuant to the program.

In May 2021, we announced that our Board had authorized a stock repurchase
program, allowing for the repurchase of up to $30.0 million of our outstanding
shares of common stock. Share repurchases under the stock repurchase program may
be made in the open market at prevailing market prices or through privately
negotiated transactions in accordance with applicable federal securities laws.
The authorization was effective immediately and extended through April 29, 2023.
In August 2021, we announced that our Board had approved a $20.0 million
increase in the amount authorized under the stock repurchase program, from $30.0
million to $50.0 million. The authorization was effective immediately and
extended through July 29, 2023. As of December 31, 2021, we had repurchased 0.9
million shares of common stock at a total cost of $49.4 million under this stock
repurchase program. Under these programs, we repurchased an aggregate of 1.5
million shares of common stock at a total cost of $67.4 million in 2021. See
Note 20, "Subsequent Events" of the Notes to the Consolidated Financial
Statements in Part II, Item 8, "Financial Statements and Supplementary Data,"
for more information regarding the completion of the 2021 repurchase program
following the end of the year and a new repurchase program announced on February
9, 2022.


Regional management company | 2021 Annual Report on Form 10-K | 55 ————————————————- ——————————-

The board may, at its discretion, declare and pay cash dividends on our common shares. The following table shows the dividends declared and paid for 2021:

                                                                                   Dividends Declared Per
Three Months Ended   Declaration Date       Record Date         Payment Date            Common Share
March 31, 2021       February 10, 2021   February 23, 2021     March 12, 2021     $                   0.20
June 30, 2021           May 4, 2021        May 26, 2021        June 15, 2021      $                   0.25
September 30, 2021    August 3, 2021      August 25, 2021    September 15, 2021   $                   0.25
December 31, 2021    November 2, 2021    November 24, 2021   December 15, 2021    $                   0.25
Total                                                                             $                   0.95


The Board declared and paid $9.5 million of cash dividends on our common stock
during 2021. The declaration, amount, and payment of any future cash dividends
on shares of our common stock will be at the discretion of the Board. See Note
20, "Subsequent Events" of the Notes to Consolidated Financial Statements in
Part II, Item 8, "Financial Statements and Supplementary Data," for more
information regarding our quarterly cash dividend following the end of the year.

While we intend to pay our quarterly dividend for the foreseeable future, all
subsequent dividends will be reviewed and declared at the discretion of the
Board and will depend on many factors, including our financial condition,
earnings, cash flows, capital requirements, level of indebtedness, statutory and
contractual restrictions applicable to the payment of dividends, and other
considerations that the Board deems relevant. Our dividend payments may change
from time to time, and the Board may choose not to continue to declare dividends
in the future.

Cash Flow.

Operating Activities. Net cash provided by operating activities in 2021 was
$189.0 million, compared to $165.0 million provided by operating activities in
2020, a net increase of $24.0 million. The increase was primarily due to the
growth in our average net finance receivables.

Investing Activities. Investing activities consist of originations of finance
receivables, purchases of intangible assets, and purchases of property and
equipment for new and existing branches. Net cash used in investing activities
in 2021 was $355.1 million, compared to $91.7 million in 2020, a net increase in
cash used of $263.4 million. The increase in cash used was primarily due to
increased net originations of finance receivables.

Financing Activities. Financing activities consist of borrowings and payments on
our outstanding indebtedness. In 2021, net cash provided by financing activities
was $243.4 million, compared to net cash used in financing activities of $57.8
million in 2020, a net increase of $301.2 million. The net increase in cash
provided was the result of a $377.9 million net increase in advances on debt
instruments, partially offset by an increase in the repurchase of common stock
of $55.4 million, an increase in cash dividends of $7.3 million, an increase in
taxes paid of $8.3 million, and an increase in payments for debt issuance costs
of $5.7 million.

Financing Arrangements.

Senior Revolving Credit Facility. In December 2021, we amended and restated our
senior revolving credit facility to, among other things, decrease the
availability under the facility from $640 million to $500 million and extend the
maturity of the facility from September 2022 to September 2024. Excluding the
receivables held by our variable interest entities (each, a "VIE"), the senior
revolving credit facility is secured by substantially all of our finance
receivables and equity interests of the majority of our subsidiaries. Advances
on the senior revolving credit facility are capped at 83% of eligible secured
finance receivables (83% of eligible secured finance receivables as of December
31, 2021). As of December 31, 2021, we had $199.2 million of available liquidity
under the facility and held $10.5 million in unrestricted cash. Borrowings under
the facility bear interest, payable monthly, at rates equal to one-month LIBOR,
with a LIBOR floor of 0.50%, plus a 3.00% margin. The effective interest rate
was 3.50% at December 31, 2021. The amended and restated facility provides for a
process to transition from LIBOR to a new benchmark in certain circumstances. We
pay a flat unused line fee of 0.50%.

Our debt under the senior revolving credit facility was $112.1 million as of
December 31, 2021. In advance of its September 2024 maturity date, we intend to
extend the maturity date of the amended and restated senior revolving credit
facility or take other appropriate action to address repayment upon maturity.
See Part I, Item 1A, "Risk Factors" and the filings referenced therein for a
discussion of risks related to our amended and restated senior revolving credit
facility, including refinancing risk.


Regional management company | 2021 Annual Report on Form 10-K | 56 ————————————————- ——————————-



Variable Interest Entity Debt. As part of our overall funding strategy, we have
transferred certain finance receivables to affiliated VIEs for asset-backed
financing transactions, including securitizations. The following debt
arrangements are issued by our wholly-owned, bankruptcy-remote, SPEs, which are
considered VIEs under GAAP and are consolidated into the financial statements of
their primary beneficiary. We are considered to be the primary beneficiary
because we have (i) power over the significant activities through our 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 our interest in the monthly residual cash flows of the SPEs.

These 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 $107.7 million
and $46.6 million as of December 31, 2021 and 2020, respectively. Cash inflows
from the finance receivables are distributed to the lenders/investors, the
service providers, and/or the residual interest that we own in accordance with a
monthly contractual priority of payments. The SPEs pay a servicing fee to us,
which is eliminated in consolidation.

At each sale of receivables from our affiliates to the SPEs, we make certain
representations and warranties about the quality and nature of the
collateralized receivables. The debt arrangements require us to repurchase the
receivables in certain circumstances, including circumstances in which the
representations and warranties made by us concerning the quality and
characteristics of the receivables are inaccurate. Assets transferred to SPEs
are legally isolated from us and our affiliates, and the claims of our and our
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 us or any of our
affiliates. See Part I, Item 1A, "Risk Factors" and the filings referenced
therein for a discussion of risks related to our variable interest entity debt.

RMR II Revolving Warehouse Credit Facility. In April 2021, we and our
wholly-owned SPE, Regional Management Receivables II, LLC ("RMR II"), amended
and restated the credit agreement that provides for a revolving warehouse credit
facility to RMR II to, among other things, extend the date at which the facility
converts to an amortizing loan and the termination date to March 2023 and March
2024, respectively, decrease the total facility from $125 million to $75
million, increase the cap on facility advances from 80% to 83% of eligible
finance receivables, and increase the rate at which borrowings under the
facility bear interest, payable monthly, at a blended rate equal to three-month
LIBOR, with a LIBOR floor of 0.25%, plus a margin of 2.35% (2.15% prior to the
April 2021 amendment). The debt is secured by finance receivables and other
related assets that we purchased from our affiliates, which we then sold and
transferred to RMR II. The effective interest rate was 2.60% at December 31,
2021. RMR II pays an unused commitment fee between 0.35% and 0.85% based upon
the average daily utilization of the facility. The RMR II revolving warehouse
credit facility provides for a process to transition from LIBOR to a new
benchmark in certain circumstances. As of December 31, 2021, our debt under the
credit facility was $52.5 million.

RMR IV Revolving Warehouse Credit Facility. In April 2021, we and our
wholly-owned SPE, Regional Management Receivables IV, LLC ("RMR IV"), entered
into a credit agreement that provides for a $125 million revolving warehouse
credit facility to RMR IV. The facility converts to an amortizing loan in April
2023 and terminates in April 2024. The debt is secured by finance receivables
and other related assets that we purchased from our affiliates, which we then
sold and transferred to RMR IV. Advances on the facility are capped at 81% of
eligible finance receivables. Borrowings under the facility bear interest,
payable monthly, at a rate equal to one-month LIBOR, plus a margin of 2.35%. The
effective interest rate was 2.45% at December 31, 2021. RMR IV pays an unused
commitment fee between 0.35% and 0.70% based upon the average daily utilization
of the facility. The RMR IV revolving warehouse credit facility provides for a
process to transition from LIBOR to a new benchmark in certain circumstances. As
of December 31, 2021, our debt under the credit facility was $20.1 million.

RMR V Revolving Warehouse Credit Facility. In April 2021, we and our
wholly-owned SPE, Regional Management Receivables V, LLC ("RMR V"), entered into
a credit agreement that provides for a $100 million revolving warehouse credit
facility to RMR V. The facility converts to an amortizing loan in October 2022
and terminates in October 2023. The debt is secured by finance receivables and
other related assets that we purchased from our affiliates, which we then sold
and transferred to RMR V. Advances on the facility are capped at 80% of eligible
finance receivables. Borrowings under the facility bear interest, payable
monthly, at a per annum rate, which in the case of a conduit lender is the
commercial paper rate, plus a margin of 2.20%. The effective interest rate was
2.41% at December 31, 2021. RMR V pays an unused commitment fee between 0.45%
and 0.75% based upon the average daily utilization of the facility. As of
December 31, 2021, our debt under the credit facility was $59.5 million.

RMIT 2019-1 Securitization. In October 2019, we, our wholly-owned SPE, Regional
Management Receivables III, LLC ("RMR III"), and our indirect wholly-owned SPE,
Regional Management Issuance Trust 2019-1 ("RMIT 2019-1"), 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. The asset-backed notes are secured by finance receivables and other
related assets that RMR III purchased from us, which RMR III then sold and
transferred to RMIT 2019-1. The notes had a revolving period ending in October


Regional management company | 2021 Annual Report on Form 10-K | 57 ————————————————- ——————————-



2021, with a final maturity date in November 2028. Borrowings under the RMIT
2019-1 securitization bear interest, payable monthly, at an effective interest
rate of 3.19% as of December 31, 2021. Prior to maturity in November 2028, we
may redeem the notes in full, but not in part, at our option on any note payment
date on or after the payment date occurring in November 2021. During 2021, we
made principal payments of $20.8 million after the completion of the revolving
period. As of December 31, 2021, our debt under the securitization was $109.4
million. See Note 20, "Subsequent Events" of the Notes to Consolidated Financial
Statements in Part II, Item 8, "Financial Statements and Supplementary Data,"
for additional information regarding this securitization.

RMIT 2020-1 Securitization. In September 2020, we, our wholly-owned SPE, RMR
III, and our indirect wholly-owned SPE, Regional Management Issuance Trust
2020-1 ("RMIT 2020-1"), completed a private offering and sale of $180 million of
asset-backed notes. The transaction consisted of the issuance of four classes of
fixed-rate asset-backed notes by RMIT 2020-1. The asset-backed notes are secured
by finance receivables and other related assets that RMR III purchased from us,
which RMR III then sold and transferred to RMIT 2020-1. The notes have a
revolving period ending in September 2023, with a final maturity date in October
2030. Borrowings under the RMIT 2020-1 securitization bear interest, payable
monthly, at an effective interest rate of 2.85% as of December 31, 2021. Prior
to maturity in October 2030, we may redeem the notes in full, but not in part,
at our option on any business day on or after the payment date occurring in
October 2023. No payments of principal of the notes will be made during the
revolving period. As of December 31, 2021, our debt under the securitization was
$180.2 million.

RMIT 2021-1 Securitization. In February 2021, we, our wholly-owned SPE, RMR III,
and our indirect wholly-owned SPE, Regional Management Issuance Trust 2021-1
("RMIT 2021-1"), completed a private offering and sale of $249 million of
asset-backed notes. The transaction consisted of the issuance of four classes of
fixed-rate asset-backed notes by RMIT 2021-1. The asset-backed notes are secured
by finance receivables and other related assets that RMR III purchased from us,
which RMR III then sold and transferred to RMIT 2021-1. The notes have a
revolving period ending in February 2024, with a final maturity date in March
2031. Borrowings under the RMIT 2021-1 securitization bear interest, payable
monthly, at an effective interest rate of 2.08% as of December 31, 2021. Prior
to maturity in March 2031, we may redeem the notes in full, but not in part, at
our option on any business day on or after the payment date occurring in March
2024. No payments of principal of the notes will be made during the revolving
period. As of December 31, 2021, our debt under the securitization was $248.9
million.

RMIT 2021-2 Securitization. In July 2021, we, our wholly-owned SPE, RMR III, and
our indirect wholly-owned SPE, Regional Management Issuance Trust 2021-2 ("RMIT
2021-2"), completed a private offering and sale of $200 million of asset-backed
notes. The transaction consisted of the issuance of four classes of fixed-rate
asset-backed notes by RMIT 2021-2. The asset-backed notes are secured by finance
receivables and other related assets that RMR III purchased from us, which RMR
III then sold and transferred to RMIT 2021-2. The notes have a revolving period
ending in July 2026, with a final maturity date in August 2033. Borrowings under
the RMIT 2021-2 securitization bear interest, payable monthly, at an effective
interest rate of 2.30% as of December 31, 2021. Prior to maturity in August
2033, we may redeem the notes in full, but not in part, at our option on any
business day on or after the payment date occurring in August 2026. No payments
of principal of the notes will be made during the revolving period. As of
December 31, 2021, our debt under the securitization was $200.2 million.

RMIT 2021-3 Securitization. In October 2021, we, our wholly-owned SPE, RMR III,
and our indirect wholly-owned SPE, Regional Management Issuance Trust 2021-3
("RMIT 2021-3"), completed a private offering and sale of $125 million of
asset-backed notes. The transaction consisted of the issuance of fixed-rate
asset-backed notes by RMIT 2021-3. The asset-backed notes are secured by finance
receivables and other related assets that RMR III purchased from us, which RMR
III then sold and transferred to RMIT 2021-3. The notes have a revolving period
ending in September 2026, with a final maturity date in October 2033. Borrowings
under the RMIT 2021-3 securitization bear interest, payable monthly, at an
effective interest rate of 3.88% as of December 31, 2021. Prior to maturity in
October 2033, we may redeem the notes in full, but not in part, at our option on
any business day on or after the payment date occurring in October 2024. No
payments of principal of the notes will be made during the revolving period. As
of December 31, 2021, our debt under the securitization was $125.2 million.

RMIT 2022-1 Securitization. See Note 20, "Subsequent Events" of the Notes to
Consolidated Financial Statements in Part II, Item 8, "Financial Statements and
Supplementary Data," for information regarding the completion of a private
offering and sale of $250.0 million of asset-backed notes following the end of
the year.

Our 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, and certain
other restrictions. At December 31, 2021, we were in compliance with all debt
covenants.

We expect that the LIBOR reference rate will be phased out by June 2023. Our
senior revolving credit facility, RMR II revolving warehouse credit facility,
and RMR IV revolving warehouse credit facility each use LIBOR as a benchmark in
determining


Regional management company | 2021 Annual Report on Form 10-K | 58 ————————————————- ——————————-



the cost of funds borrowed. These credit facilities provide for a process to
transition from LIBOR to a new benchmark, if necessary. We plan to continue to
work with our banking partners to modify our credit agreements to contemplate
the cessation of the LIBOR reference rate. We will also continue to work to
identify a replacement rate to LIBOR and look to adjust the pricing structure of
our facilities as needed.

Restricted cash reserve accounts.


RMR II Revolving Warehouse Credit Facility. The credit agreement governing the
RMR II revolving warehouse credit facility requires that we maintain a 1% cash
reserve based upon the ending finance receivables balance of the facility. As of
December 31, 2021, the warehouse facility cash reserve requirement totaled $0.6
million. The warehouse facility is supported by the expected cash flows from the
underlying collateralized finance receivables. Collections are remitted to a
restricted cash collection account, which totaled $5.1 million as of December
31, 2021.

RMR IV Revolving Warehouse Credit Facility. The credit agreement governing the
RMR IV revolving warehouse credit facility requires that we maintain a 1% cash
reserve based upon the ending finance receivables balance of the facility. As of
December 31, 2021, the warehouse facility cash reserve requirement totaled $0.2
million. The warehouse facility is supported by the expected cash flows from the
underlying collateralized finance receivables. Collections are remitted to a
restricted cash collection account, which totaled $2.1 million as of December
31, 2021.

RMR V Revolving Warehouse Credit Facility. The credit agreement governing the
RMR V revolving warehouse credit facility requires that we maintain a 1% cash
reserve based upon the ending finance receivables balance of the facility. As of
December 31, 2021, the warehouse facility cash reserve requirement totaled $0.7
million. The warehouse facility is supported by the expected cash flows from the
underlying collateralized finance receivables. Collections are remitted to a
restricted cash collection account, which totaled $5.1 million as of December
31, 2021.

RMIT 2019-1 Securitization. As required under the transaction documents
governing the RMIT 2019-1 securitization, we deposited $1.4 million of cash
proceeds into a restricted cash reserve account at closing. The securitization
is supported by the expected cash flows from the underlying collateralized
finance receivables. Collections are remitted to a restricted cash collection
account, which totaled $11.8 million as of December 31, 2021.

RMIT 2020-1 Securitization. As required under the transaction documents
governing the RMIT 2020-1 securitization, we deposited $1.9 million of cash
proceeds into a restricted cash reserve account at closing. The securitization
is supported by the expected cash flows from the underlying collateralized
finance receivables. Collections are remitted to a restricted cash collection
account, which totaled $16.4 million as of December 31, 2021.

RMIT 2021-1 Securitization. As required under the transaction documents
governing the RMIT 2021-1 securitization, we deposited $2.6 million of cash
proceeds into a restricted cash reserve account at closing. The securitization
is supported by the expected cash flows from the underlying collateralized
finance receivables. Collections are remitted to a restricted cash collection
account, which totaled $26.6 million as of December 31, 2021.

RMIT 2021-2 Securitization. As required under the transaction documents
governing the RMIT 2021-2 securitization, we deposited $2.1 million of cash
proceeds into a restricted cash reserve account at closing. The securitization
is supported by the expected cash flows from the underlying collateralized
finance receivables. Collections are remitted to a restricted cash collection
account, which totaled $21.0 million as of December 31, 2021.

RMIT 2021-3 Securitization. As required under the transaction documents
governing the RMIT 2021-3 securitization, we deposited $1.5 million of cash
proceeds into a restricted cash reserve account at closing. The securitization
is supported by the expected cash flows from the underlying collateralized
finance receivables. Collections are remitted to a restricted cash collection
account, which totaled $19.6 million as of December 31, 2021.

RMC Reinsurance. Our wholly-owned subsidiary, RMC Reinsurance, Ltd., is required
to maintain cash reserves against life insurance policies ceded to it, as
determined by the ceding company. As of December 31, 2021, cash reserves for
reinsurance were $19.9 million.

Impact of inflation


Our results of operations and financial condition are presented based on
historical cost, except for interest rate caps, which are carried at fair value.
While it is difficult to accurately measure the impact of inflation due to the
imprecise nature of the


Regional management company | 2021 Annual Report on Form 10-K | 59 ————————————————- ——————————-

estimates required, we believe that the effects of inflation, if any, on our results of operations and financial condition to date have been immaterial.

Significant Accounting Policies and Estimates


Management's discussion and analysis of financial condition and results of
operations is based upon our consolidated financial statements, which have been
prepared in accordance with GAAP and conform to general practices within the
consumer finance industry. The preparation of these financial statements
requires estimates and assumptions that affect the reported amounts of assets
and liabilities, revenues and expenses, and disclosure of contingent assets and
liabilities for the periods indicated in the financial statements. Management
bases estimates on historical experience and other assumptions it believes to be
reasonable under the circumstances and evaluates these estimates on an ongoing
basis. Actual results may differ from these estimates under different
assumptions or conditions.

Provision for credit losses.


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 our estimate
of expected credit losses, we evaluate information related to credit metrics,
changes in our 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.

We selected a static pool Probability of Default ("PD") / Loss Given Default
("LGD") model to estimate our 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, we evaluate
our finance receivable portfolio on a pool basis and segment each pool of
finance receivables with similar credit risk characteristics. As part of our
evaluation, we consider loan 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, we selected the following segmentation: product type, Fair Isaac
Corporation score, and delinquency status.

We account 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 life of the finance
receivables (considering the effect of prepayments). Subsequent changes to the
contractual terms that are a result of re-underwriting are not included in the
finance receivable's contractual life (considering the effect of prepayments).
We use our segmentation loss experience to forecast expected credit losses.
Historical information about losses generally provides a basis for the estimate
of expected credit losses. We also consider 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.

Macroeconomic forecasts are required for our allowance for credit loss model and
require significant judgment and estimation uncertainty. We consider key
economic factors, most notably unemployment rates, to incorporate into our
estimate of the allowance for credit losses. We engaged a major rating service
provider to assist with compiling a reasonable and supportable forecast which we
use to support the adjustments of our historical loss experience. We do not
require reversion adjustments, as the contractual lives of our loan portfolio
(considering the effect of prepayments) are shorter than our available forecast
periods.

Due to the judgment and uncertainty in estimating the expected credit losses, we
may experience changes to the macroeconomic assumptions within our forecast, as
well as changes to our credit loss performance outlook, both of which could lead
to further changes in our allowance for credit losses, allowance as a percentage
of net finance receivables, and provision for credit losses.

During 2020, management captured the potential impact of the COVID-19 pandemic
in its macroeconomic forecast, we had reserved $33.4 million as of June 30,
2020. Overall improvements in the pandemic led us to release that reserve
gradually. As of December 31, 2021, we had $14.4 million in reserves. COVID-19
has created conditions that increase the level of uncertainty associated with
our estimate of the amount and timing of future credit losses from our loan
portfolio.


Regional management company | 2021 Annual Report on Form 10-K | 60 ————————————————- ——————————-



Macroeconomic Sensitivity. To demonstrate the sensitivity of forecasting
macroeconomic conditions, we stressed our macroeconomic model with an increase
of 100 bps to unemployment that would have increased our reserves as of December
31, 2021 by $1.8 million.

The macroeconomic scenarios are highly influenced by timing, severity, and
duration of changes in the underlying economic factors. This makes it difficult
to estimate how potential changes in economic factors affect the estimated
credit losses. Therefore, this hypothetical analysis is not intended to
represent our expectation of changes in our estimate of expected credit losses
due to a change in the macroeconomic environment, nor does it consider
management's judgment of other quantitative and qualitative information which
could increase or decrease the estimate.


Regional management company | 2021 Annual Report on Form 10-K | 61 ————————————————- ——————————-

© Edgar Online, source Previews

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Russian state-controlled media push disinformation about escalations with Ukraine, US says https://saar-new-media.com/russian-state-controlled-media-push-disinformation-about-escalations-with-ukraine-us-says/ Fri, 28 Jan 2022 23:20:38 +0000 https://saar-new-media.com/russian-state-controlled-media-push-disinformation-about-escalations-with-ukraine-us-says/ In each of the last two major Russian force build-ups against Ukraine, state-controlled media have played a significant role in Moscow’s attempt to influence foreign audiences, according to a recent report by the US State Department. The disinformation effort appears to be happening again during Russia’s current escalation, according to US officials and recent media […]]]>

In each of the last two major Russian force build-ups against Ukraine, state-controlled media have played a significant role in Moscow’s attempt to influence foreign audiences, according to a recent report by the US State Department.

The disinformation effort appears to be happening again during Russia’s current escalation, according to US officials and recent media reports. On Friday, the European Union’s Disinformation Watchdog released a list of Russian “myths” about the latest tensions.

Media outlets RT and Sputnik are “critical components” of Russia’s disinformation and propaganda ecosystem, the State Department said in a recent report by its Global Engagement Center. The role of RT and Sputnik is most evident when reporting on issues of political importance to the Kremlin, such as an effort to sway public opinion abroad about Ukraine, according to the report.

When Russia invaded Ukraine in 2014 and annexed the Crimean peninsula, RT promoted Kremlin talking points with false, misleading and biased coverage towards non-Russian audiences, according to the report. Seven years later, when Russia stationed troops on the border with Ukraine, state-controlled media once again deployed incorrect accounts, a “tested and effective tactic”, according to the report.

Russia could use a “false flag” to justify another invasion, the United States has warned. Talks are underway to avoid a conflict; Moscow says it won’t start a war with Ukraine, and the Ukrainian president wants to calm the panic. The United States has threatened devastating sanctions and export controls if Moscow invades Ukraine further, and a senior administration official recently told reporters there was “convergence” with the EU on all potential measures.

In 2014, RT repeatedly referred to Russia’s military presence as ‘self-defense forces’ and in one instance posted photos of locals posing with soldiers along with positive quotes, according to the State Department report. . The outlet spread Kremlin disinformation under the guise of journalism and sowed confusion about the truth, according to the report. He had a clear strategy to target a non-Russian audience with Kremlin messaging on Ukraine, according to the report.

The content at the time “assiduously followed the Kremlin talking points”, according to the report.

Following RT’s work surrounding Russian aggression against Ukraine, Moscow announced the creation of Sputnik in November 2014, according to the report. Russian President Vladimir Putin honored 300 journalists, including RT’s editor-in-chief, for their “objective coverage” of events in Crimea, according to the report.

The buildup of troops along the Ukrainian border in 2021 was visible and Russia did not deny it, saying it was part of a ‘routine’ exercise,” the State Department said. Russian media later unearthed some of their stories from the 2014 operation, including that US and allied support for Ukrainian territorial integrity sparked tension; that Ukraine has a serious Nazi problem; and that the Ukrainian armed forces intentionally injure children, according to the report.

RT repeatedly continued to spread disinformation about the allegedly injured children, even after the stories involved were debunked by outside observers and independent media, according to the State Department report.

Russian officials and RT and Sputnik executives have acknowledged that the media amplifies government communications through one-sided reporting, according to the US report. Media ‘does not operate in a vacuum’ within Russia’s disinformation and propaganda ecosystem, report says citing their facilitation and engagement in cyber influence operations such as the hacking and leaking of Democratic National Committee emails in 2016.

RT and Sputnik have regularly quoted and promoted content from news outlets and figures under US sanctions for acting as Russian disinformation proxies, including News Front and Aleksandr Malkevich, according to the State Department. News Front and other Russian disinformation outlets have attempted a number of tactics to evade US measures, Kharon found.

And RT and Sputnik have played a key role in spreading disinformation related to the COVID-19 pandemic, promoting conspiracy theories and casting doubt on Western vaccines, according to the State Department report. .

RT’s COVID-19 coverage targeting foreign audiences “differs significantly” from its Russian counterpart, according to the report, citing several studies. Sputnik’s Spanish-language website was at the center of a network of websites hosting malware files linked to stories posted on social media about a pause in vaccine trials at the time, according to the report. “The stories of RT and Sputnik undermining US and European COVID-19 vaccines while promoting Russian vaccines are counterproductive and detrimental to global public health,” the report said.

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Group of Asian publishers worried about shutdown of independent media outlets in Hong Kong https://saar-new-media.com/group-of-asian-publishers-worried-about-shutdown-of-independent-media-outlets-in-hong-kong/ Mon, 03 Jan 2022 12:58:00 +0000 https://saar-new-media.com/group-of-asian-publishers-worried-about-shutdown-of-independent-media-outlets-in-hong-kong/ FILE PHOTO: A general view of skyline buildings in Hong Kong, China July 13, 2021. REUTERS / Tyrone Siu MANILA, Philippines – A group of publishers in Asia has raised concerns over the recent shutdown of two independent media outlets in Hong Kong, noting recent pressures on the media sector following the passage of the […]]]>


FILE PHOTO: A general view of skyline buildings in Hong Kong, China July 13, 2021. REUTERS / Tyrone Siu

MANILA, Philippines – A group of publishers in Asia has raised concerns over the recent shutdown of two independent media outlets in Hong Kong, noting recent pressures on the media sector following the passage of the National Security Act in July 2020.

The Society of Publishers in Asia (SOPA) said in a statement Monday that Stand News and Citizen News mentioned specific circumstances for their closures – in the case of Stand News, after former officials were arrested by police; and Citizen News, to ensure the safety of its staff.

“Last week two independent Hong Kong media outlets, Stand News and Citizen News, shut down; Stand News after former and current executives were arrested by the National Security Police and their assets were frozen; Citizen News announced its closure today, citing the safety of its staff as the reason, ”SOPA said.

“SOPA, the Society of Publishers in Asia, regrets the shutdown of these media outlets, which follows the shutdown of Apple Daily, and notes with concern the increasing pressure on local independent media following the introduction of the national security in July 2020, ”he added.

In a previous report, Citizen News cited the deteriorating media environment in Hong Kong as the reason for its decision to stop publishing. It comes days after senior Stand News executives were arrested for allegedly conspiring to publish seditious material.

READ: Hong Kong Citizen News independent portal says to shut down

READ: Hong Kong police raiding pro-democracy media outlet, arresting six

SOPA pointed out that Citizen News and Stand News are publications that have been cited by them and other peers for their outstanding journalistic quality, winning several awards from SOPA itself.

The group also stressed that Hong Kong, if it is to continue to prosper as a financial hub, needs a free press and authorities that respect free speech.

“Both organizations have been recognized by their editorial peers for the journalistic quality of their work, winning awards and honorable mentions at the annual SOPA Awards, for entries ranging from computer graphics to article writing. Stand News has won 1 award, 4 honorable mentions and 1 finalist in total in its seven years of existence, while Citizen News has received 1 award and 1 honorable mention in its four years of activity, ”said the SOPA.

“The publishing industry in Hong Kong needs a viable independent media sector to thrive, create jobs and support our city as a commercial and financial center. We call on the Hong Kong authorities to respect freedom of speech and of the press which are vital for the success of our industry, ”he added.

Hong Kong has seen a series of protests dating from before the COVID-19 pandemic arrived in the city, as protesters denounced amendments to the anti-extradition law, which boiled until 2020 when China , which controls the region, has enacted a national law. security bill for Hong Kong.

Since then activists have been arrested, but the Hong Kong government insists it is not targeting activists and the media.

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Fog City News, print media haven, closes after 22 years https://saar-new-media.com/fog-city-news-print-media-haven-closes-after-22-years/ Fri, 17 Dec 2021 08:00:00 +0000 https://saar-new-media.com/fog-city-news-print-media-haven-closes-after-22-years/ By James Salazar Special for examiner In the sea of ​​towers of the Financial District, Fog City News sits like a gem not to be missed. For 22 years, Adam Smith and his team have been supplying customers with renowned magazines, quirky greeting cards and above all artisanal chocolates from all over the world. By […]]]>

By James Salazar

Special for examiner

In the sea of ​​towers of the Financial District, Fog City News sits like a gem not to be missed. For 22 years, Adam Smith and his team have been supplying customers with renowned magazines, quirky greeting cards and above all artisanal chocolates from all over the world. By the end of the month, San Franciscans will have to find their solutions elsewhere, as the store will close for good on New Year’s Eve.

Unlike other retailers that have gone out of business over the past year and a half, Fog City News’ closure is not related to rent increases or challenges presented by the COVID-19 pandemic. Instead, Smith hit a natural stopping point in her career.

“I don’t feel like there’s anything else I feel the need to try and accomplish with this store. Twenty-two years is a really long time in the business retail, really. I’m in awe of these places around town that have been around for 50, 60, 70 years. It’s awesome. I just don’t think it’s in my blood to continue just for the sake of it. ‘go,’ Smith said.

Prior to opening Fog City News, Smith spent several years in restaurant management, his work taking him to New York, Los Angeles and then San Francisco. Although he dealt with customer service, Smith did not see the food industry as an ideal candidate.

“I stumbled across a store on the Fillmore called Juicy News, and started working for them,” Smith said. “I started to really look around downtown San Francisco and felt there was an opportunity for an international newsstand that had the kind of reach that San Francisco deserved.”

This is how Fog City News was created.

Carrying more than 1,200 magazines, Smith’s store has been voted “Best Newsstand” in its first year of business and 21 consecutive years by local publications such as the San Francisco Chronicle and SF Weekly.

The layout of Fog City News at 455 Market Street has remained virtually unchanged since 1999. For years, customers walked on 920 square feet of carpet to peruse the magazines that dotted the yellow walls of the store. In addition to print media, there was space on the shelves for novelties such as music boxes, replicas of a Golden Gate Bridge rivet and a solar-powered Thomas Edison figurine with working light bulb.

While Smith and his employees are known as chocolate connoisseurs, these treats weren’t always part of the store’s offerings. Originally, Smith’s candies of choice were Pop Rocks, gumdrops, and other standard candy bars. However, customers who bought European magazines asked Smith when he was going to start selling “real” chocolate and a home-made inventory overhaul ensued.

Fog City News was carrying over 200 chocolate bars, and each bar had to be unanimously approved by staff to be displayed on store shelves. Upon entering the store, customers were asked if they would like to taste some chocolate. Their purchases earned them Chocolate Passports, punch cards that allowed customers to get $5 off their next treat after buying 10 separate bars. Smith shared that 26 customers are part of the “Century Club,” with 10 or more full cards, and three customers have achieved “Triple Century Club” status.

For many long-time customers, Fog City News was a routine pit stop on their commute.

“It was a great place to get cards because I work a few blocks from here, so I always knew I could find irreverent, fun cards for any occasion and for the people that it’s hard to find cards. I also like the chocolate selection,” said Katie Murphy, who has attended Fog City News for the past 18 years.

Smith’s selection of more than 1,000 cards – including at least 100 containing a swear word – has also made Fog City News one of San Francisco’s largest independent card shops.

“It was definitely a first experience when it comes to combining amazing cards, an amazing magazine collection, and really good, super premium chocolate,” Murphy added. “I had never seen anything like it. There are international newsstands in New York, but usually they are just magazines.

While many businesses have closed during the pandemic, Fog City News has stayed afloat, thanks to a steady stream of mail order orders from dedicated customers. Even as Market Street reflected a ghost town, customers lined up outside the store to pick up and place orders behind a plexiglass window.

For customers like Murphy, her relationship with employees has kept her coming back to the store. “I always look forward to seeing Adam and the staff and saying hello and feeling like I have a real connection here,” Murphy said. “It’s just not a store. It’s somewhere where they know me, and it’s really great.

Reader polls, such as that conducted by 48Hills in 2019, voted Smith’s team as the “best staff in the store”.

Smith said there are members of his dedicated magazine clientele who “over the past few weeks have come in worried, I mean, really worried about where they’re going to buy magazines now. And I told them all, ‘Don’t worry. I’m working on that,” Smith said. “There are a few stores that I am lining up to hopefully bring us a similar selection. And that will be announced in the coming weeks.

As the Fog City News chapter of his life comes to an end, Smith looks back fondly. “So many memories, so many great customers. Ultimately, for any retail business, any restaurant or any bar, it comes down to the people who work there and the people who are the customers. That’s what creates the community of this company.

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beIN Media Group Wins IABM’s “Best Broadcast/Media Company of the Year (2021)” Award https://saar-new-media.com/bein-media-group-wins-iabms-best-broadcast-media-company-of-the-year-2021-award/ Tue, 14 Dec 2021 08:00:00 +0000 https://saar-new-media.com/bein-media-group-wins-iabms-best-broadcast-media-company-of-the-year-2021-award/ Doha: beIN MEDIA GROUP (“beIN”), the global sports, media and entertainment group, has been awarded “Best Broadcast/Media Company of the Year 2021” – one of the world’s most most prestigious awards for quality broadcast and media innovations – by the International Trade Association for the Broadcast and Media Industry (IABM). beIN won the award for […]]]>

Doha: beIN MEDIA GROUP (“beIN”), the global sports, media and entertainment group, has been awarded “Best Broadcast/Media Company of the Year 2021” – one of the world’s most most prestigious awards for quality broadcast and media innovations – by the International Trade Association for the Broadcast and Media Industry (IABM).

beIN won the award for its outstanding coverage of UEFA EURO 2020, as the IABM website stated: “beIN produced outstanding coverage of UEFA EURO 2020 – the first major live sporting event since the global lockdown in March 2020. It did so despite ongoing COVID-19 restrictions and reached almost a billion views across the Middle East and North Africa (MENA) region, combining 15 hours of daily live studio coverage with expert analysis of local and international talent and 18 from the field. reporters in 11 European countries. All of this while continuing to deliver the rest of beIN’s important summer sports coverage – a fantastic achievement, especially given the enormous difficulties caused by the pandemic.”

beIN’s successful summer 2021 sports calendar was filled with major tournaments in various regional and international sports, including the 2020 Tokyo Olympics, 2021 COPA America, 2021 CONCACAF Gold Cup and Grand Slam tournaments in tennis, including Wimbledon, Roland-Garros, the US Open, and many more. beIN provided unparalleled coverage of these tournaments through a network of 24 channels – delivering specially curated content in three languages ​​(Arabic, English and French) to viewers in 24 countries across the MENA region.

On this celebratory occasion, Mohammad Al Subaie, CEO of beIN MENA, said: “We are delighted to have received this prestigious industry award, which is a testament to beIN’s leadership in the industry, especially in light of the exceptional circumstances the world has been going through in recent times.”

Al Subaie added: “Through its efficient operations and innovations, beIN has successfully met the challenges posed by the ongoing COVID-19 pandemic, reigniting the passion for football and sports for millions of viewers across the MENA region. The successful coverage of UEFA EURO 2020 and other global and continental tournaments reinforces our commitment to broadcast the biggest and most prestigious sporting event in the world, the FIFA World Cup Qatar 2022.MT”.

UEFA EURO 2020 recorded record viewership rates in the MENA region, with the average number of views for each match on beIN channels reaching around 18.8 million, while the number of views for the last game Italy v England increased. surpassed the 64 million mark. France, Italy, Germany and Portugal all saw over 30 million views on average for their matches.

-Ends-

About beIN MEDIA GROUP

beIN MEDIA GROUP is a leading independent global media group and one of the world’s leading sports and entertainment networks. The group distributes and produces an unrivaled range of entertainment, live sports and major international events across 5 continents, 43 countries and in 9 different languages ​​covering Europe, North America, Asia, Australasia and the Middle East and North Africa (MENA). beIN MEDIA GROUP’s flagship sports network, beIN SPORTS, holds the largest portfolio of sports rights of any global broadcaster; and through its iconic film studio MIRAMAX, beIN holds an extensive library of Hollywood blockbusters while having a growing presence in the production and distribution of series and films, as well as in the digital space. beIN MEDIA GROUP acquired Digiturk, Turkey’s leading pay-TV operator, in August 2016; and now has more than 55 million subscribers worldwide. For more information about beIN MEDIA GROUP, please contact: mediaoffice@bein.com

© Press Release 2021

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Soaring paper prices, the latest issue, poisons the print media market | Economy https://saar-new-media.com/soaring-paper-prices-the-latest-issue-poisons-the-print-media-market-economy/ Thu, 25 Nov 2021 08:00:00 +0000 https://saar-new-media.com/soaring-paper-prices-the-latest-issue-poisons-the-print-media-market-economy/ The Covid pandemic has also resulted in an increase in online media consumption and a concomitant decline in print purchases, Postimees says (link in Estonian), while paper shortages are the reason for the rise in prices there. Andres Kull, the manager of Kroonpress printing, says the price of printing has increased 60% this year, plus […]]]>


The Covid pandemic has also resulted in an increase in online media consumption and a concomitant decline in print purchases, Postimees says (link in Estonian), while paper shortages are the reason for the rise in prices there.

Andres Kull, the manager of Kroonpress printing, says the price of printing has increased 60% this year, plus an increase in the cost of production.

Tõnis Peebo, sales manager at Printall, said there could be further price increases, hence the reason why no contracts are made with customers for more than a quarter.

Timmo Lilium, director of distribution and customer service at Postimees, said the group’s paper costs were around one million euros per year, while his printer announced that a price increase of 60 at 70% is expected.

The original piece by Postimees (in Estonian) is here.

Postimees produces several dailies, not only the newspaper of the same name, in Tallinn, Tartu and Pärnu, but several regional variants covering much of the country, including Sakala (Viljandi County), Põhjarännik (Ida-Viru County) and Saarte Hääl (Saaremaa and the other islands). Its competitors include Eesti Päevaleht (EPL), published by Ekspress Grupp, and Õhutleht.

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Around the city: Midpen Media Center marks its reopening during an open day | New https://saar-new-media.com/around-the-city-midpen-media-center-marks-its-reopening-during-an-open-day-new/ Sat, 23 Oct 2021 07:00:00 +0000 https://saar-new-media.com/around-the-city-midpen-media-center-marks-its-reopening-during-an-open-day-new/ In the latest Round Town column, news from the Midpen Media Center welcoming locals to its studios, city council members participating in an earthquake simulation exercise, and the reaction of a Stanford professor’s family to his Nobel Prize. RECONNECTION … Over the past few days, the Midpen Media Center popular Community media week with a […]]]>


In the latest Round Town column, news from the Midpen Media Center welcoming locals to its studios, city council members participating in an earthquake simulation exercise, and the reaction of a Stanford professor’s family to his Nobel Prize.

RECONNECTION … Over the past few days, the Midpen Media Center popular Community media week with a handful of events that have encouraged the public to reflect on the role community media play in our lives. It was also a celebration of Freedom of expression week.

The organization welcomed local residents to its studios in 900 San Antonio Street Wednesday for an open house, which marked its official reopening.

“At the height of the COVID pandemic, we have supported our producers remotely so that they can continue to provide important new content. We have also taken the time to listen to our community and re-evaluate how we can use our space. to better meet its needs “, Midpen CEO and Executive Director of Media Keri stokstad said in a statement. “We are introducing renovated areas that will support greater collaboration for the local creative community and provide space for media creators and other types of creation to meet and build community, learn new skills, create great art. and make new friends. “

Midpen also hosted a VIP Watch Party on Zoom with some of their producers’ work on Thursday and plans to run free public service announcements for local nonprofits on Friday. For more information visit midpenmedia.org.

SHAKE … With the drought and the pandemic making the headlines, it’s all too easy to forget about earthquakes, the ever-present threat to the Bay Area.

This week the Palo Alto City Council and Ken duker, city manager Emergency services office, have done their part to remind residents what to do when the ground shakes. Putting on t-shirts with the words “Drop”, “Cover” and “Wait,” council members began their virtual meeting on Monday by participating in a mock earthquake.

The event, which supports the International ShakeOut Day campaign, aims to explain to participants the steps to follow in the event of an earthquake: drop, cover and hang on. “These are the things you should do as soon as you feel the earth shake,” Dueker said. “The worst that can happen, I guess, is that you’re embarrassed that it’s a big truck passing by. “

Council members did their part by rushing under their desks for a brief period before reappearing for a ‘welfare check’ roll call by the mayor. Tom dubois. Most survived the exercise unharmed. member of the board Lydia Kou was the only exception. “I banged my head against the table when I was sinking, so my head hurts right now,” Kou, a longtime emergency response volunteer, said after the exercise.

Dueker encouraged community members to take earthquakes seriously. “It can be tempting to ignore it as we deal with the global pandemic, and there are many other things that people face that are perhaps more in the foreground, but anytime we can be faced with a jolt. pretty harsh, “he said. For more advice on planning for natural disasters, visit cityofpaloalto.org/preparedness.

ALL IN THE FAMILY … Stanford University professor Guido Imbens‘The household was in turmoil in the wee hours of October 11 when they learned he had won the Nobel Prize in Economics.

“I woke up around 2:30 am. Everyone was running around”, her 17 year old son Carleton Imbens, Recount Stanford Press Service.

The prize was so important that Imbens’ wife, Susan athey, gave their three children the option of not going to school that day.

Imbens and Athey (professor of economics of technology at Stanford’s Business School) discussed their work with their three children. “Most of the time they want to talk about other kinds of science, but sometimes they make their parents happy with econometrics,” Athey said in the Stanford article.

Imbens shares half the price with Joshua Angrist, his colleague from Massachusetts Institute of Technology, “for their methodological contributions to the analysis of causal relationships.” It’s a subject that Imben and Athey’s children seem to understand. “It’s very interesting how you can extract data from things that weren’t meant for nothing and then use it to draw those exceptional conclusions.” Sylvie, 10, his father said in a Stanford video. In the same video, Imbens sat down with his second son, André, to elaborate on the applications of his work, which can be used in social policy such as guaranteed income.


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Broadcast Media Market Recovery And Impact Analysis Report – Comcast, DIRECTV, Walt Disney – EcoChunk https://saar-new-media.com/broadcast-media-market-recovery-and-impact-analysis-report-comcast-directv-walt-disney-ecochunk/ https://saar-new-media.com/broadcast-media-market-recovery-and-impact-analysis-report-comcast-directv-walt-disney-ecochunk/#respond Fri, 15 Oct 2021 13:21:48 +0000 https://saar-new-media.com/broadcast-media-market-recovery-and-impact-analysis-report-comcast-directv-walt-disney-ecochunk/ The updated Broadcast Media Market report gives an accurate analysis of the value chain assessment for the review period 2021 to 2027. The research includes a comprehensive assessment of the administration of major companies in the market and their income-generating business strategies adopted by them. to run a sustainable business. The service industry report further […]]]>


The updated Broadcast Media Market report gives an accurate analysis of the value chain assessment for the review period 2021 to 2027. The research includes a comprehensive assessment of the administration of major companies in the market and their income-generating business strategies adopted by them. to run a sustainable business. The service industry report further lists the market gaps, stability, growth drivers, restraining factors, opportunities for the projected period.

Get a sample report with the latest analysis of industry trends: https://www.a2zmarketresearch.com/sample-request/576468

Key companies in this report include: Comcast, DIRECTV, Walt Disney, News, Time Warner.

The global broadcast media market is expected to register a notable expansion of the XX% during the review period due to the higher market value in 2019. The market research provides a measure of product effectiveness, real-time broadcast media market scenario, as well as personalized ease. The study further offers market analysis, strategies and planning, R&D landscape, target audience management, market potential, due diligence and competitive landscape.

Scope of the report:

In-depth analysis of statistics on current and emerging trends provides clarity regarding broadcast media market dynamics. The report includes Porter’s five forces to analyze the importance of various characteristics such as understanding of suppliers and customers, risks posed by various agents, competitive strength, and promising emerging businessmen to understand a resource. precious. Further, the report covers the broadcast media research data of various companies, advantages, gross margin, strategic decisions of the global market, etc. via tables, charts and infographics.

The Broadcast Media report highlights an overall assessment of the revenue generated by different segments in different regions for the forecast period, 2021 to 2027. To leverage business owners, gain an in-depth understanding of the current momentum, the Broadcast Media research leverages hard to find data on aspects including, but not limited to, demand and supply, distribution channel and technology upgrades. Primarily, determining stringent government policies and regulations and government initiatives promoting the growth of the broadcast media market provides knowledge of what lies ahead for business owners in the years to come.

Global segmentation of broadcast media market:

Market segmentation: by type

Cable radio
Wireless radio

Market segmentation: by application

Government unit
Commercial
Other

Geographic analysis:

The global broadcast media market is spread across North America, Europe, Asia-Pacific, Middle East and Africa as well as the rest of the world.

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COVID-19 impact assessment

The COVID-19 pandemic has emerged in containment across regions, line limitations and the breakdown of transport organizations. In addition, the financial vulnerability of the broadcast media market is much higher than past outbreaks such as extreme intense respiratory state (SARS), avian flu, swine flu, bird flu and Ebola, inferred from the growing number. of infected individuals and vulnerability. on the end of the crisis. With the rapid increase in cases, the global broadcast media refreshment market is influenced from several points of view.

Accessibility of workforce is obviously disrupting the global broadcast media market inventory network as lockdown and the spread of infection cause individuals to stay indoors. The presentation of the broadcast media manufacturers and the transport of the products are associated. If the assembly movement is stopped, the transport as well as the warehouse network also stop. Stacking and dumping of items i.e. raw materials and results (fasteners), which require a ton of labor, are also heavily affected due to the pandemic. From the entrance of the assembly plant to the warehouse or distribution center to end customers, i.e. application companies, the entire Broadcast Media inventory network is in serious jeopardy. because of the episode.

The research provides answers to the following key questions:

  • What is the projected market size of the broadcast media market by 2027?
  • What will the normal share of the industry as a whole be for years to come?
  • What are the major components and restraints in the development of the global broadcast media market across varying geographies?
  • Who are the major sellers expected to dominate the market for the 2021 to 2027 evaluation period?
  • What are the moving and upcoming advancements that are expected to influence the advancement of the global broadcast media market?
  • What are the development techniques received by major market sellers to stay ahead of the curve?

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