OneMain Holdings, Inc.

Your program is about to begin. Should you need audio assistance during today's program, please press star zero. Welcome to the OneMain Financial third quarter 2021 earnings conference call and webcast. Hosting the call today from OneMain is Peter Poyan, head of investor relations. Today's call is being recorded. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing the pound key. We do ask that you limit yourself to one question and one follow-up, and please pick up your headset to allow optimal sound quality. Lastly, if you should require operator assistance, please press star zero. It is now my pleasure to turn the floor over to Peter Poyan. You may begin.

Thank you, Brittany. Good morning, everyone, and thank you for joining us. Let me begin by directing you to page two of the third quarter 2021 investor presentation, which contains important disclosures concerning forward-looking statements and the use of non-GAAP measures. The presentation can be found in the investor relations section of our website. Our discussion today will contain certain forward-looking statements reflecting management's current beliefs about the company's future, financial performance, and business prospects. And these forward-looking statements are subject to inherent risks and uncertainties and speak only as of today. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in our earnings press release and include the effects of the COVID-19 pandemic on our business, our customers, and the economy in general. We caution you not to place undue reliance on forward-looking statements. If you may be listening to this via replay at some point after today, we remind you that the remarks made herein are as of today, October 21st, and have not been updated subsequent to this call. Our call this morning will include formal remarks from Doug Shulman, our Chairman and Chief Executive Officer, and Micah Conrad, our Chief Financial Officer. After the conclusion of our formal remarks, we will conduct a question and answer session. So now let me turn the call over to Doug.

Thanks, Peter, and good morning, everyone. We appreciate you joining us today. After I take a few minutes this morning reviewing our financial performance for the quarter, I'd like to spend the bulk of my time discussing the economic climate for our lending products and the progress we're making on the strategic initiatives that will allow us to continue to realize our mission and of improving the financial well-being of hardworking Americans. I'm quite pleased with our third quarter performance, as we once again saw strong loan originations throughout the quarter, resulting in an $800 million increase in receivables. Our capital generation was excellent in the quarter. and we remain well positioned for continued growth with healthy demand bolstered by our strategic growth initiatives. In the quarter, we generated $360 million of capital, 66 million more than the prior year, up 22%. CNI adjusted earnings for the quarter were $2.37 per share, up 8% over the third quarter of 2020. Our record low loss performance largely reflects the credit tightening actions that we took in 2020 and the government support programs over the last year and a half. Third quarter losses reached an all-time low for one main of 3.5%. And while we anticipate credit normalizing over time, we feel confident about our ability to continue to generate strong risk-adjusted returns. The economic and business trends we observed in the quarter remain positive. Labor markets continue to improve and wages are rising modestly, which is a positive for our customer base. Household balance sheets remain healthy. Savings rates and retail deposit levels remain elevated and revolving credit balances have declined. Consumers are confident and continue to support economic growth through personal consumption. Importantly, demand for our product has picked up to pre-pandemic levels and is again driving portfolio growth. We saw strong originations in the quarter, up 34% compared to a year ago and 6% higher than 2019. This resulted in third quarter receivables growing 7% year over year and 4% over the quarter. The environment is currently positive for consumer lending, but nonetheless, we will remain vigilant and continue to closely monitor economic conditions as we emerge from the pandemic. Let me now pivot to provide an update on a few of our key growth initiatives. As I've said before, our vision is to be the lender of choice for non-prime consumers. We're leveraging our core strength, lending to the non-prime consumer, while also expanding our suite of products, services, and experiences to deepen our customer relationships, increase engagement, and enhance our proprietary data set. We will provide a range of responsible lending options to meet customers' needs today and offer products and services that enable a better financial future. I'm really pleased to tell you that we launched our two digital first credit cards in late August. As we've discussed in the past, the cards are designed specifically for the non-prime consumer by reinforcing credit building behaviors. If you haven't seen them already, they are Brightway and Brightway Plus, and we encourage you to go to the website to check out our differentiated offering. As I've described before, we're starting with a very deliberate pilot program designed to test marketing effectiveness, line usage, and credit results. We anticipate issuing about 60,000 cards this year, which will give us a big enough sample for our pilot before we have a scaled rollout that will likely occur at the end of 2022. It's very early days, but the initial results show strong take-up rates by our customers and usage of the card for everyday purchases like gas, groceries, and dining out. These early results confirm our hypothesis that our customers' affinity to the brand will drive adoption, and that pairing a daily transactional product with our more episodic loan product will provide value to our customers. The card is currently available to customers in about 60 branches on the West Coast, and we recently began a direct mail campaign. We plan to scale our branch footprint and other origination channels further in the weeks and the months ahead. We're very excited about our card offering and the value that it will provide to customers. We anticipate cards will be a multi-billion dollar receivables business for us over the coming years. As we discussed last quarter, we're also in the process of integrating Trim our financial wellness fintech with a focus on helping customers save money by analyzing bills and spending. As of today, we are on track to offer Trim to one main customers by the first quarter of 2022 and are excited about the long-term value Trim will bring to our customers and our company. We also added new channel partners this quarter. One example is Sunlight Financial, a financing platform provider for home improvement contractors. The partnership allows us to provide credit to consumers at the point of sale with loans of similar size and economics to our core product. We anticipate further such partnerships in the future, and it is another example of how we have built a flexible platform that allows us to meet customers where and how they want to do business. The critical investments we have made and are continuing to make in technology, new channels and products, and digital capabilities continue to have a positive impact on our results. Our strong quarterly performance would not have occurred without our strategic product innovations, data-driven operational enhancements, and expanded digital capabilities. It's worth noting that we continue to see about half of our originations closed digitally. Finally, let me briefly comment on capital deployment. During the quarter, we returned about $560 million to shareholders via our regular quarterly and our enhanced dividends. In addition, we returned more than $140 million via share repurchases, that included programmatic purchases under our current authorization, as well as a nearly $100 million block purchase we made in the July secondary offering. Using our capital allocation framework as a guide, we will continue to invest in loans that provide value to our customers and meet our risk return criteria, invest in the business to position us for the future, and return capital to shareholders. With that, let me turn the call over to Micah to take you through the financial details of the third quarter.