OneMain Holdings, Inc. Reports First Quarter 2018 Results

  OneMain Holdings, Inc. Reports First Quarter 2018 Results

     1Q 2018 GAAP diluted EPS of $0.91;1Q 2018 C&I adjusted EPS of $1.18

Business Wire

EVANSVILLE, Ind. -- May 2, 2018

OneMain Holdings, Inc. (NYSE: OMF) today reported pretax income of $168
million and net income of $124 million for the first quarter of 2018, compared
to $57 million and $33 million, respectively, in the prior year quarter.
Earnings per diluted share were $0.91 in the first quarter of 2018, compared
to $0.25 in the prior year quarter.

“Our first quarter 2018 financial performance reflected continued strength
across all key fundamental drivers of our business,” said Jay Levine,
President and CEO of OneMain Holdings, Inc. “We continued to grow finance
receivables in a disciplined manner, prioritizing secured lending and
appropriate risk-adjusted returns. In addition, credit performance remained
strong and we continued to drive improvements in operating leverage. We are
very well-positioned to achieve our 2018 strategic priorities.”

The following segment results are reported on a non-GAAP basis. Refer to the
required reconciliations of non-GAAP to comparable GAAP measures at the end of
this press release.

Consumer and Insurance Segment (“C&I”)

C&I generated adjusted pretax income of $211 million and adjusted net income
of $160 million for the first quarter of 2018, compared to $163 million and
$103 million, respectively, in the prior year quarter. Adjusted earnings per
diluted share were $1.18 for the first quarter of 2018, compared to $0.76 in
the prior year quarter.

Originations totaled $2.5 billion in the first quarter of 2018, up 40% from
$1.8 billion in the prior year quarter. The percentage of secured originations
was 44% in the first quarter of 2018, down from 48% in the prior year quarter.

Ending net finance receivables reached $14.9 billion at March 31, 2018, up 13%
from $13.2 billion in the prior year quarter. Average net finance receivables
were $14.9 billion in the first quarter of 2018, up 12% from $13.3 billion in
the prior year quarter.

Secured receivables represented 43% of ending net finance receivables at March
31, 2018, up from 37% in the prior year quarter.

Interest income in the first quarter of 2018 was $873 million, up from $798
million in the prior year quarter, largely reflecting the impact of higher
average receivables.

Yield was 23.8% in the first quarter of 2018, down from 24.4% in the prior
year quarter, as an increasing mix of lower yielding Direct Auto loans was
partially offset by ongoing pricing initiatives.

Provision for loan losses was $258 million in the first quarter of 2018, up
from $239 million in the prior year quarter.

The 30-89 day delinquency ratio was 2.1% at March 31, 2018, down from 2.4% at
December 31, 2017 and 2.2% at March 31, 2017.

The 90+ day delinquency ratio was 2.3% at March 31, 2018, consistent with 2.3%
at both December 31, 2017 and March 31, 2017.

The net charge-off ratio was 7.2% in the first quarter of 2018, up from 6.4%
in the fourth quarter of 2017, and down from 8.5% in the prior year quarter.

Acquisitions and Servicing Segment (“A&S”)

A&S generated adjusted pretax income of $1 million in the first quarter of
2018, consistent with $1 million of adjusted pretax income in the prior year
quarter.

Other

During the first quarter of 2018, Other generated an adjusted pretax loss of
$10 million, compared to an adjusted pretax loss of $7 million in the prior
year quarter.

Funding, Capital and Liquidity

During the quarter ended March 31, 2018, the company issued $1.25 billion of
unsecured debt at a cost of funds of 6.875%. In addition, the company issued
$950 million of ABS, net of risk retention, at an average cost of funds of
3.74%. The company also redeemed $700 million of its outstanding 6.75% senior
notes due 2019. At period end, the company had principal debt balances
outstanding of $16.3 billion, 56% of which was secured and 44% of which was
unsecured. On April 18, 2018, the company redeemed $400 million of its
outstanding 7.25% senior notes due 2021.

As of March 31, 2018, the company had $1.8 billion of cash and cash
equivalents, which included $201 million of cash and cash equivalents held at
our regulated insurance subsidiaries or for other operating activities that is
unavailable for general corporate purposes. The company had undrawn revolving
conduit facilities of $4.9 billion and $4.8 billion of unencumbered consumer
loans at March 31, 2018.

Use of Non-GAAP Financial Measures

We report the operating results of Consumer and Insurance, Acquisitions and
Servicing, and Other using the Segment Accounting Basis, which (i) reflects
our allocation methodologies for certain costs, primarily interest expense,
loan loss reserves, and acquisition costs, to reflect the manner in which we
assess our business results and (ii) excludes the impact of applying purchase
accounting (eliminates premiums/discounts on our finance receivables and
long-term debt at acquisition, as well as the amortization/accretion in future
periods). Consumer and Insurance adjusted pretax income (loss), Consumer and
Insurance adjusted net income (loss), Consumer and Insurance adjusted earnings
(loss) per diluted share, Acquisitions and Servicing adjusted pretax income
(loss), and Other adjusted pretax income (loss) are key performance measures
used by management in evaluating the performance of our business. Consumer and
Insurance adjusted pretax income (loss), Acquisitions and Servicing adjusted
pretax income (loss), and Other adjusted pretax income (loss) represents
income (loss) before income taxes on a Segment Accounting Basis and excludes
acquisition-related transaction and integration expenses, net gain (loss) on
sale of personal and real estate loans, net gain on sale of SpringCastle
interests, SpringCastle transaction costs, losses resulting from repurchases
and repayments of debt, debt refinance costs, net loss on liquidation of our
United Kingdom subsidiary, and income attributable to non-controlling
interests. Management believes these non-GAAP financial measures are useful in
assessing the profitability of our segments and uses these non-GAAP financial
measures in evaluating our operating performance and as a performance goal
under the company’s executive compensation programs. These non-GAAP financial
measures should be considered supplemental to, but not as a substitute for or
superior to, income (loss) before income taxes, net income, or other measures
of financial performance prepared in accordance with GAAP.

Conference Call & Webcast Information

OneMain management will host a conference call and webcast to discuss our
first quarter 2018 results and other general matters at 8:00 am Eastern Time
on Thursday, May 3, 2018. Both the call and webcast are open to the general
public. The general public is invited to listen to the call by dialing
877-330-3668 (U.S. domestic) or 678-304-6859 (international), and using
conference ID 1293017, or via a live audio webcast through the Investor
Relations section of the website. For those unable to listen to the live
broadcast, a replay will be available on our website, or by dialing
800-585-8367 (U.S. domestic) or 404-537-3406, and using conference ID 1293017,
beginning approximately two hours after the event. The replay of the
conference call will be available via audio webcast through August 4, 2018. An
investor presentation will be available on the Investor Relations page of
OneMain’s website at https://www.omf.com prior to the start of the conference
call.

This document contains summarized information concerning OneMain Holdings,
Inc. (the “Company”) and the Company’s business, operations, financial
performance and trends. No representation is made that the information in this
document is complete. For additional financial, statistical and business
related information, as well as information regarding business and segment
trends, see the Company's most recent Annual Report on Form 10-K (“Form 10-K”)
and Quarterly Reports on Form 10-Q (“Form 10-Qs”) filed with the U.S.
Securities and Exchange Commission (the “SEC”), as well as the Company’s other
reports filed with the SEC from time to time. Such reports are or will be
available in the Investor Relations section of the Company's website
(https://www.omf.com) and the SEC's website (https://www.sec.gov).

Cautionary Note Regarding Forward-Looking Statements

This document contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
are not statements of historical fact but instead represent only management’s
current beliefs regarding future events. By their nature, forward-looking
statements involve inherent risks, uncertainties and other important factors
that may cause actual results, performance or achievements to differ
materially from those expressed in or implied by such forward-looking
statements. We caution you not to place undue reliance on these
forward-looking statements that speak only as of the date they were made. We
do not undertake any obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after the date
of this document or to reflect the occurrence of unanticipated events or the
non-occurrence of anticipated events. Forward-looking statements include,
without limitation, statements concerning future plans, objectives, goals,
projections, strategies, events or performance, and underlying assumptions and
other statements related thereto. Statements preceded by, followed by or that
otherwise include the words “anticipates,” “appears,” “are likely,”
“believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects”
and similar expressions or future or conditional verbs such as “would,”
“should,” “could,” “may,” or “will,” are intended to identify forward-looking
statements. Important factors that could cause actual results, performance or
achievements to differ materially from those expressed in or implied by
forward-looking statements include, without limitation, the following: the
inability to obtain, or delays in obtaining, cost savings and synergies from
the OneMain Acquisition and risks and other uncertainties associated with the
integration of the companies; any litigation, fines or penalties that could
arise relating to the OneMain Acquisition or the Apollo Transaction; the
impact of the Apollo Transaction on our relationships with employees and third
parties; various risks relating to our continued compliance with the
previously disclosed Settlement Agreement with the U.S. Department of Justice;
changes in general economic conditions, including the interest rate
environment in which we conduct business and the financial markets through
which we can access capital and also invest cash flows from our Consumer and
Insurance segment; levels of unemployment and personal bankruptcies; natural
or accidental events such as earthquakes, hurricanes, tornadoes, fires, or
floods affecting our customers, collateral, or branches or other operating
facilities; war, acts of terrorism, riots, civil disruption, pandemics,
disruptions in the operation of our information systems, cyber-attacks or
other security breaches, or other events disrupting business or commerce;
changes in the rate at which we can collect or potentially sell our finance
receivables portfolio; the effectiveness of our credit risk scoring models in
assessing the risk of customer unwillingness or lack of capacity to repay;
changes in our ability to attract and retain employees or key executives to
support our businesses; changes in the competitive environment in which we
operate, including the demand for our products, customer responsiveness to our
distribution channels, our ability to make technological improvements, and the
strength and ability of our competitors to operate independently or to enter
into business combinations that result in a more attractive range of customer
products or provide greater financial resources; risks related to the
acquisition or sale of assets or businesses or the formation, termination or
operation of joint ventures or other strategic alliances or arrangements,
including loan delinquencies or net charge-offs, integration or migration
issues, increased costs of servicing, incomplete records, and retention of
customers; risks associated with our insurance operations, including insurance
claims that exceed our expectations or insurance losses that exceed our
reserves; the inability to successfully implement our growth strategy for our
consumer lending business as well as various risks associated with
successfully acquiring portfolios of consumer loans, pursuing acquisitions,
and/or establishing joint ventures; declines in collateral values or increases
in actual or projected delinquencies or net charge-offs; changes in federal,
state or local laws, regulations, or regulatory policies and practices,
including the Dodd-Frank Wall Street Reform and Consumer Protection Act
(which, among other things, established the Consumer Financial Protection
Bureau, which has broad authority to regulate and examine financial
institutions, including us), that affect our ability to conduct business or
the manner in which we conduct business, such as licensing requirements,
pricing limitations or restrictions on the method of offering products, as
well as changes that may result from increased regulatory scrutiny of the
sub-prime lending industry, our use of third-party vendors and real estate
loan servicing, or changes in corporate or individual income tax laws or
regulations, including effects of the enactment of Public Law 115-97 amending
the Internal Revenue Code of 1986; potential liability relating to real estate
and personal loans which we have sold or may sell in the future, or relating
to securitized loans, if it is determined that there was a non-curable breach
of a representation or warranty made in connection with such transactions; the
costs and effects of any actual or alleged violations of any federal, state or
local laws, rules or regulations, including any litigation associated
therewith, any impact to our business operations, reputation, financial
position, results of operations or cash flows arising therefrom, any impact to
our relationships with lenders, investors or other third parties attributable
thereto, and the costs and effects of any breach of any representation,
warranty or covenant under any of our contractual arrangements, including
indentures or other financing arrangements or contracts, as a result of any
such violation; the costs and effects of any fines, penalties, judgments,
decrees, orders, inquiries, investigations, subpoenas, or enforcement or other
proceedings of any governmental or quasi-governmental agency or authority and
any litigation associated therewith; our continued ability to access the
capital markets or the sufficiency of our current sources of funds to satisfy
our cash flow requirements; our ability to comply with our debt covenants; our
ability to generate sufficient cash to service all of our indebtedness; any
material impairment or write-down of the value of our assets; the effects of
any downgrade of our debt ratings by credit rating agencies, which could have
a negative impact on our cost of and/or access to capital; our substantial
indebtedness, which could prevent us from meeting our obligations under our
debt instruments and limit our ability to react to changes in the economy or
our industry, or our ability to incur additional borrowings; the impacts of
our securitizations and borrowings; our ability to maintain sufficient capital
levels in our regulated and unregulated subsidiaries; changes in accounting
standards or tax policies and practices and the application of such new
standards, policies and practices; changes in accounting principles and
policies or changes in accounting estimates; effects of the acquisition of
Fortress Investment Group LLC by an affiliate of SoftBank Group Corp.;
effects, if any, of the contemplated acquisition by an investor group of
shares of our common stock beneficially owned by Fortress Investment Group LLC
and its affiliates; any failure or inability to achieve the SpringCastle
Portfolio performance requirements set forth in the SpringCastle Interests
Sale purchase agreement; the effect of future sales of our remaining portfolio
of real estate loans and the transfer of servicing of these loans, including
the environmental liability and costs for damage caused by hazardous waste if
a real estate loan goes into default; and other risks and uncertainties
described in the “Risk Factors” and “Management’s Discussion and Analysis”
sections of the Company’s most recent Form 10-K and Form 10-Qs filed with the
SEC and in the Company’s other filings with the SEC from time to time. The
foregoing list of factors that could cause actual results, performance, or
achievements to differ materially from those expressed in or implied by
forward-looking statements does not purport to be complete and new factors,
risks and uncertainties may arise in the future that are impossible for us to
currently predict.

                                                                     
OneMain Holdings, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                                                 
                                                Quarter Ended
(unaudited, $ in millions, expect per share     3/31/18    12/31/17   3/31/17
amounts)
                                                                       
Finance charges                                 $ 859      $ 854      $ 756
Finance receivables held for sale originated    3          3          3       
as held for investment
Total interest income                           862        857        759
                                                                       
Interest expense                                (200   )   (204   )   (202   )
Provision for finance receivable losses         (254   )   (231   )   (245   )
Net interest income after provision for         408        422        312
finance receivable losses
                                                                       
Other revenues:
Insurance                                       105        106        103
Investment                                      13         15         19
Other                                           19         25         19      
Total other revenues                            137        146        141
                                                                       
Other expenses:
Operating expenses:
Salaries and benefits                           (194   )   (195   )   (186   )
Acquisition-related transaction and             (10    )   (10    )   (23    )
integration expenses
Other operating expenses                        (128   )   (131   )   (142   )
Insurance policy benefits and claims            (45    )   (45    )   (45    )
Total other expenses                            (377   )   (381   )   (396   )
Income before income taxes                      168        187        57
Income tax expense ^(1)                         (44    )   (148   )   (24    )
Net income                                      $ 124      $ 39       $ 33    
                                                                       
                                                                       
Weighted average number of Diluted Shares       135.9      135.9      135.6
GAAP Diluted EPS                                $ 0.91     $ 0.29     $ 0.25

(1)   Includes one-time after-tax impact of tax reform in 4Q17 of $81 million.
       

 
OneMain Holdings, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                                         
                                          Quarter Ended
                                                                   
(unaudited, $ in millions)                3/31/2018    12/31/2017   3/31/2017
                                                                     
Cash and cash equivalents                 $ 1,807      $ 987        $ 787
Investment securities                     1,706        1,697        1,755
Net finance receivables:
Personal loans                            14,858       14,823       13,240
Other receivables ^(1)                    129          134          148       
Net finance receivables                   14,987       14,957       13,388
Unearned insurance premium and claim      (585     )   (590     )   (558     )
reserves
Allowance for finance receivable losses   (689     )   (697     )   (666     )
Net finance receivables, less unearned
insurance premium and claim reserves      13,713       13,670       12,164
and allowance for finance receivable
losses
Finance receivables held for sale         126          132          148
Restricted cash and restricted cash       679          498          558
equivalents
Goodwill                                  1,422        1,422        1,422
Other intangible assets                   428          440          477
Other assets                              586          587          662       
Total assets                              $ 20,467     $ 19,433     $ 17,973  
                                                                     
Long-term debt                            $ 15,898     $ 15,050     $ 13,679
Insurance claims and policyholder         728          737          749
liabilities
Deferred and accrued taxes                72           45           8
Other liabilities                         387          323          432       
Total liabilities                         17,085       16,155       14,868    
                                                                     
Common stock                              1            1            1
Additional paid-in capital                1,563        1,560        1,550
Accumulated other comprehensive income    (12      )   11           (2       )
(loss)
Retained earnings                         1,830        1,706        1,556     
Total shareholders’ equity                3,382        3,278        3,105     
Total liabilities and shareholders’       $ 20,467     $ 19,433     $ 17,973  
equity

(1)   Other Receivables consist of Real Estate and Retail Sales Finance, which
      were reported separately in prior periods.
       

 
OneMain Holdings, Inc.
CONSOLIDATED KEY FINANCIAL METRICS (UNAUDITED)
                                 
                                  Quarter Ended
                                                             
(unaudited, $ in millions)        3/31/2018     12/31/2017    3/31/2017
Loans:
Non-TDR Net Finance Receivables   $ 14,582      $ 14,590      $ 13,178
TDR Net Finance Receivables       405           367           210       
Total Net Finance Receivables     $ 14,987      $ 14,957      $ 13,388  
                                                               
Average Net Receivables           $ 14,986      $ 14,738      $ 13,513
Origination Volume                2,540         3,133         1,812
                                                               
Allowance:
Non-TDR Allowance                 $ 524         $ 550         $ 582
TDR Allowance                     165           147           84        
Total Allowance                   $ 689         $ 697         $ 666     
                                                               
Non-TDR Allowance Ratio           3.6      %    3.8      %    4.4      %
TDR Allowance Ratio               40.7     %    39.9     %    40.2     %
Total Allowance Ratio             4.6      %    4.7      %    5.0      %
                                                               
Gross Charge-Off                  $ 290         $ 256         $ 297
Recoveries                        (28      )    (24      )    (29      )
Net Charge-Off                    $ 262         $ 232         $ 268     
                                                               
Gross Charge-Off Ratio            7.9      %    6.9      %    8.9      %
Recoveries                        (0.8     )%   (0.7     )%   (0.9     )%
Net Charge-Off Ratio              7.1      %    6.2      %    8.0      %
                                                               
Delinquency:
30-89 Delinquency                 $ 317         $ 372         $ 296
30+ Delinquency                   671           729           625
60+ Delinquency                   490           517           453
90+ Delinquency                   354           357           329
                                                               
30-89 Delinquency Ratio           2.1      %    2.5      %    2.2      %
30+ Delinquency Ratio             4.5      %    4.9      %    4.7      %
60+ Delinquency Ratio             3.3      %    3.5      %    3.4      %
90+ Delinquency Ratio             2.4      %    2.4      %    2.5      %

Note: Delinquency ratio is calculated as a percentage of net finance
receivables.
 

 
OneMain Holdings, Inc.
BALANCE SHEET METRICS (UNAUDITED)
                                         
                                          Quarter Ended
                                                                   
(unaudited, $ in millions)                3/31/2018    12/31/2017   3/31/2017
                                                                     
Liquidity
Cash and cash equivalents                 $ 1,807      $ 987        $ 787
Unencumbered assets ^(1)                  4,829        5,007        4,088
Undrawn conduit facilities                4,900        5,050        4,640
                                                                     
Total Assets                              $ 20,467     $ 19,433     $ 17,973
Less: Goodwill                            (1,422   )   (1,422   )   (1,422   )
Less: Other intangible assets             (428     )   (440     )   (477     )
Tangible Managed Assets                   $ 18,617     $ 17,571     $ 16,074  
                                                                     
Long-term debt                            $ 15,898     $ 15,050     $ 13,679
Less: Junior subordinated debt            (172     )   (172     )   (172     )
Adjusted Debt                             $ 15,726     $ 14,878     $ 13,507  
                                                                     
Total Shareholders' Equity                $ 3,382      $ 3,278      $ 3,105
Less: Goodwill                            (1,422   )   (1,422   )   (1,422   )
Less: Other intangible assets             (428     )   (440     )   (477     )
Plus: Junior subordinated debt            172          172          172       
Adjusted Tangible Common Equity           $ 1,704      $ 1,588      $ 1,378   
                                                                     
Adjusted Debt to Adjusted Tangible        9.2x         9.4x         9.8x
Common Equity (Tangible Leverage)
                                                                     
Adjusted Tangible Common Equity to        9.2      %   9.0      %   8.6      %
Tangible Managed Assets

(1)   Personal loans not pledged as collateral on existing securitizations.
       

                                                 
OneMain Holdings, Inc.
CONSOLIDATED RETURN ON RECEIVABLES
                              
                             Quarter Ended
                                                   
(unaudited, $ in millions)   3/31/18   12/31/17   3/31/17
                                                   
Revenue ^(1)                 25.5 %    26.0  %    25.3  %
Net Charge-Off               (7.1 )%   (6.2  )%   (8.0  )%
Risk Adjusted Margin         18.4 %    19.8  %    17.3  %
Operating Expenses           (8.9 )%   (9.1  )%   (10.4 )%
Unlevered RoR                9.5  %    10.7  %    6.9   %
Interest Expense             (5.3 )%   (5.5  )%   (6.0  )%
Income Tax Expense           (1.2 )%   (4.0  )%   (0.7  )%
Return on Receivables ^(2)   3.3  %    1.1   %    1.0   %

Note: All ratios are based on Consolidated GAAP results as a percentage of
average net finance receivables held for investment.
(1)    Revenue includes interest income on finance receivables plus other
       revenues less insurance policy benefits and claims.
(2)    Return on receivables includes the change in allowance impact, net of
       tax.
        

 
OneMain Holdings, Inc.
CONSUMER AND INSURANCE SEGMENT (Non-GAAP)
                                           
                                            Quarter Ended
                                                                    
(unaudited, $ in millions)                  3/31/2018   12/31/2017   3/31/2017
                                                                      
Finance charges                             $  873      $  875       $  798
Finance receivables held for sale           —           —            —        
Total interest income                       873         875          798
                                                                      
Interest expense                            (194    )   (195     )   (186    )
Provision for finance receivable losses     (258    )   (245     )   (239    )
Net interest income after provision for     421         435          373
finance receivable losses
                                                                      
Insurance                                   105         106          103
Investment                                  14          18           25
Other                                       14          14           10       
Total other revenues                        133         138          138
                                                                      
Operating expenses                          (298    )   (299     )   (303    )
Insurance policy benefits and claims        (45     )   (45      )   (45     )
Total other expenses                        (343    )   (344     )   (348    )
                                                                      
Adjusted pretax income (non-GAAP)           211         229          163
                                                                      
Income taxes ^(1)                           (51     )   (85      )   (60     )
                                                                      
Adjusted net income (non-GAAP)              $  160      $  144       $  103   
                                                                      
Weighted average number of Diluted Shares   135.9       135.9        135.6
C&I Adjusted Diluted EPS ^(2)               $  1.18     $  1.06      $  0.76

(1)   Income taxes assume a 37% statutory tax rate for 2017 periods and 24%
      for 2018 periods.
      C&I adjusted diluted EPS is calculated as the adjusted net income
(2)   (non-GAAP) divided by the weighted average number of diluted shares
      outstanding.
       

 
OneMain Holdings, Inc.
CONSUMER AND INSURANCE SEGMENT - CREDIT METRICS (Non-GAAP)
                                 
                                  Quarter Ended
                                                             
(unaudited, $ in millions)        3/31/2018     12/31/2017    3/31/2017
                                                               
Loans:
Non-TDR Net Finance Receivables   $ 14,370      $ 14,339      $ 12,758
TDR Net Finance Receivables       500           481           399       
Total Net Finance Receivables     $ 14,870      $ 14,820      $ 13,157  
                                                               
Average Net Receivables           $ 14,860      $ 14,589      $ 13,261
Origination Volume                2,540         3,133         1,812
                                                               
Allowance:
Non-TDR Allowance                 $ 514         $ 533         $ 548
TDR Allowance                     204           191           146       
Total Allowance ^(1)              $ 718         $ 724         $ 694     
                                                               
Non-TDR Allowance Ratio           3.6      %    3.7      %    4.3      %
TDR Allowance Ratio               40.8     %    39.7     %    36.6     %
Total Allowance Ratio             4.8      %    4.9      %    5.3      %
                                                               
Gross Charge-Off                  $ 297         $ 264         $ 313
Recoveries                        (33      )    (28      )    (36      )
Net Charge-Off                    $ 264         $ 236         $ 277     
                                                               
Gross Charge-Off Ratio            8.1      %    7.2      %    9.6      %
Recoveries                        (0.9     )%   (0.8     )%   (1.1     )%
Net Charge-Off Ratio              7.2      %    6.4      %    8.5      %
                                                               
Delinquency:
30-89 Delinquency                 $ 310         $ 362         $ 284
30+ Delinquency                   648           701           586
60+ Delinquency                   473           496           422
90+ Delinquency                   338           339           302
                                                               
30-89 Delinquency Ratio           2.1      %    2.4      %    2.2      %
30+ Delinquency Ratio             4.4      %    4.7      %    4.5      %
60+ Delinquency Ratio             3.2      %    3.4      %    3.2      %
90+ Delinquency Ratio             2.3      %    2.3      %    2.3      %

Note: Consumer & Insurance financial information is presented on an adjusted
Segment Accounting Basis. Delinquency ratios are calculated as a percentage of
net finance receivables. All ratios are shown as a percentage of C&I average
net finance receivables held for investment.
(1)                           For allowance for finance receivables loss
                              reconciliation to GAAP, see page 16.
                               

 
OneMain Holdings, Inc.
CONSUMER & INSURANCE SEGMENT METRICS (Non-GAAP)
                                 
                                  Quarter Ended
                                                      
(unaudited, $ in millions)        3/31/18   12/31/17   3/31/17
                                                        
Revenue ^(1)                      25.9 %    26.5  %    26.8 %
Net Charge-Off                    (7.2 )%   (6.4  )%   (8.5 )%
Risk Adjusted Margin              18.7 %    20.1  %    18.3 %
Operating Expenses                (8.0 )%   (8.2  )%   (9.1 )%
Unlevered RoR                     10.7 %    11.9  %    9.2  %
Interest Expense                  (5.2 )%   (5.3  )%   (5.6 )%
Provision for Income Taxes ^(2)   (1.4 )%   (2.4  )%   (1.4 )%
Return on Receivables ^(3)        4.3  %    4.0   %    3.1  %

Note: Consumer & Insurance financial information is presented on an adjusted
Segment Accounting Basis. All ratios are shown as a percentage of C&I average
net finance receivables held for investment.
                         Revenue includes interest income on finance
(1)                      receivables plus other revenues less insurance policy
                         benefits and claims.
(2)                      Income taxes assume a 37% statutory tax rate for 2017
                         and 24% for 2018.
(3)                      Return on receivables includes the change in
                         allowance impact, net of tax.
                          

 
OneMain Holdings, Inc.
ACQUISITIONS AND SERVICING SEGMENT (Non-GAAP)
                                           
                                            Quarter Ended
                                                                    
(unaudited, $ in millions)                  3/31/2018   12/31/2017   3/31/2017
                                                                      
Portfolio Servicing Fees from               $   9       $   10       $  10
SpringCastle
Other                                       —           —            2       
Total Other Revenues                        9           10           12      
Operating Expenses                          (8     )    (10     )    (11    )
Total Other Expenses                        (8     )    (10     )    (11    )
Adjusted Pretax Income (non-GAAP)           $   1       $   —        $  1    

Note: Acquisitions & Servicing results are presented on an adjusted Segment
Accounting Basis.
 

 
OneMain Holdings, Inc.
OTHER (Non-GAAP)
                                            Quarter Ended
                                                                    
(unaudited, $ in millions)                  3/31/2018   12/31/2017   3/31/2017
                                                                      
Finance Charges                             $  3        $  3         $  4
Finance Receivables Held for Sale           2           2            2        
Total Interest Income                       5           5            6
                                                                      
Interest Expense                            (5      )   (5      )    (6      )
Provision for Finance Receivable Losses     2           —            (1      )
Net Interest Income after Provision for     2           —            (1      )
finance receivable losses
                                                                      
Other                                       (2      )   3            —        
Total Other Revenues                        (2      )   3            —        
                                                                      
Operating Expenses                          (10     )   (10     )    (6      )
Total Other Expenses                        (10     )   (10     )    (6      )
                                                                      
Adjusted Pretax Income (non-GAAP)           $  (10  )   $  (7   )    $  (7   )
                                                                      
Net Finance Receivables held for
investment:
Personal Loans                              $  —        $  —         $  6
Other Receivables                           136         142          158      
Total Net Finance Receivables held for      $  136      $  142       $  164   
investment
                                                                      
Net Finance Receivables held for sale       $  133      $  138       $  151

Note: Other is presented on an adjusted Segment Accounting Basis. Effective
1Q17, Real Estate segment was combined with "Other." Effective 1Q18, Retail
Sales Finance and Real Estate receivables were combined with "Other
Receivables." Prior periods have been revised to conform to the new
presentation.
 

                                                                      
OneMain Holdings, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Non-GAAP)
                                                   
                                                  Quarter Ended
                                                                        
(unaudited, $ in millions)                        3/31/18   12/31/17   3/31/17
                                                                        
Consumer & Insurance                              $ 174     $  219     $ 142
Acquisitions & Servicing                          1         —          1
Other                                             (10   )   (7     )   (13   )
Segment to GAAP Adjustment                        3         (25    )   (73   )
Income Before Income Taxes - GAAP basis           $ 168     $  187     $ 57   
                                                                        
Pretax Income - Segment Accounting Basis          $ 174     $  219     $ 142
Net Loss on Repurchases and Repayments of Debt    27        —          1
Acquisition-Related Transaction and Integration   10        10         20     
Expenses
Consumer & Insurance Adjusted Pretax Income       $ 211     $  229     $ 163  
(non-GAAP)
                                                                        
Pretax Income - Segment Accounting Basis          1         —          1
Adjustments                                       —         —          —      
Acquisitions & Servicing Adjusted Pretax Income   $ 1       $  —       $ 1    
(non-GAAP)
                                                                        
Pretax Loss - Segment Accounting Basis            $ (10 )   $  (7  )   $ (13 )
Acquisition-Related Transaction and Integration   —         —          6      
Expenses
Other Adjusted Pretax Loss (non-GAAP)             $ (10 )   $  (7  )   $ (7  )
                                                                              

 
OneMain Holdings, Inc.
RECONCILIATION OF KEY SEGMENT METRICS (Non-GAAP)
                                         
                                          Quarter Ended
                                                                   
(unaudited, $ in millions)                3/31/18      12/31/17     3/31/17
                                                                     
Consumer & Insurance                      $ 14,870     $ 14,820     $ 13,157
Acquisition & Servicing                   —            —            —
Other                                     136          142          164
Segment to GAAP Adjustment                (19      )   (5       )   67        
Net Finance Receivables Held for          $ 14,987     $ 14,957     $ 13,388  
Investment - GAAP basis
                                                                     
Consumer & Insurance                      $ 718        $ 724        $ 694
Acquisition & Servicing                   —            —            —
Other                                     32           35           30
Segment to GAAP Adjustment                (61      )   (62      )   (58      )
Allowance for Finance Receivable Losses   $ 689        $ 697        $ 666     
- GAAP basis
                                                                     
Consumer & Insurance                      $ 15,856     $ 14,974     $ 13,601
Acquisition & Servicing                   —            —            —
Other                                     269          280          314
Segment to GAAP Adjustment                (227     )   (204     )   (236     )
Long-Term Debt - GAAP basis               $ 15,898     $ 15,050     $ 13,679  
                                                                              

View source version on businesswire.com:
https://www.businesswire.com/news/home/20180502006307/en/

Contact:

OneMain Holdings, Inc.
Kathryn Miller, 475-619-8821
Kathryn.Miller@omf.com
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