OneMain Holdings, Inc.

Good day, everyone, and welcome to today's one main financial Q3 2024 earnings call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. You may register to ask a question anytime by pressing star 1 on your telephone keypad. You may withdraw yourself from the queue by pressing star 2. Today's call is being recorded. I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Mr. Peter Pouillon.

Thank you, Operator. Good morning, everyone, and thank you for joining us. Let me begin by directing you to page two of the third quarter 2024 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 the one main 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. 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 30th, 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 Jenny Osterhout, our Chief Financial Officer. After the conclusion of our formal remarks, we will conduct a question and answer session. I'd like to now turn the call over to Doug.

Thanks, Pete. Good morning, everyone, and thank you for joining us today. We feel very good about our results for the quarter and year to date. to make good progress on our strategic initiatives to position one name for success in the years to come. Capital generation was $211 million, and C&I adjusted earnings were $1.26 per share this quarter, both up significantly from last quarter. Our receivables grew 11% year over year, driven by an increase in loan originations and our expanded product offerings, while total revenue grew 8%. Despite our very tight underwriting posture, third quarter origination volume grew 13% year-over-year. This is the first time since we tightened our credit box more than two years ago that we've seen year-over-year growth in origination. and we expect to see continued growth going forward. The momentum we saw this quarter in originations was the result of two factors that I discussed briefly last quarter, the current constructive competitive environment and our continued use of granular data analytics and product innovation to find profitable pockets of growth. We are pleased to have strong originations even as we maintain a tight underwriting posture. Turning to credit, any way you look at it, we like the trends we are seeing. Our 30-89 day delinquency was 3.01%, which is down 27 basis points year-to-date, as compared to down 9 basis points last year, and only down 12 basis points on average in pre-pandemic years. These better-than-normal seasonal trends hold true for the quarter-over-quarter movements as well. Delinquency was up four basis points from last quarter, as compared to up 22 basis points last year in the same quarter, and up 18 basis points on average pre-pandemic. These positive credit trends are a result of the swift action we took on credit two years ago. Our disciplined underwriting since that time our unique business model, and an unparalleled understanding of how to best serve the non-prime consumer. Net charge-offs were 7.5% in the quarter, down about 100 basis points from last quarter, and consistent with our expectations given the delinquency levels earlier in the year. Our credit trends make us feel very Barring a recession, we believe we saw peak losses in our consumer loan business in the first half of 2024. We expect this will lead to growth in capital generation in 2025 and future years. And continued positive macroeconomic trends like lower interest rates, stable employment, and reduced inflation could provide even more tailwinds going forward. program continue to stand out as clear competitive advantages for us. In August, we completed a $750 million unsecured social bond at an interest rate of just over 7%. The net proceeds of the offering will finance loans to individuals residing in credit insecure or credit at risk counties, as defined by the Federal Reserve. This kind of focused lending is part of the fabric of One Name and illustrates how we provide responsible access to credit across the entire nation. Moving to our newer products, both auto finance and credit cards are important parts of our commitment to help more customers meet their needs today and progress to a better financial future while driving profitable growth for our shareholders. We now have about 3.3 million customers, and our multiple products are allowing us to meet more consumers with different needs and at different times in their financial journey. Auto finance receivables were $2.3 billion at quarter end. Credit performance in the auto business remains in line with our expectations and better than comparable industry performance. The integration of Foresight is going well, and we are now operating our entire auto finance business under the one main auto brand. All of the moving parts of the integration are progressing on plan, including technology platform consolidation, data integration, vendor cost consolidation, and more. We feel great about our competitors. card users. We'll be cautious in our growth and maintain very tight underwriting standards, but believe we are well positioned for the future years. In our credit card business, we added 122,000 new accounts and $84 million in receivables during the quarter. We've been measured in our credit card growth But we continue to invest in data analytics that help us run the business more efficiently and profitably, as well as in improved customer self-service features that enhance the digital user experience while also reducing costs. This has led to our service calls per customer being down more than 40% year over year, as more customers are using the app to make payments, check balances, redeem a reward, and more. We're also launching and developing more online partnerships to broaden our acquisition chain, so when the time comes to accelerate growth, we are ready. We are confident that we have a differentiated card product that resonates well with our target customer, and we will continue to develop the business to position us for future expansion. Finally, Let me touch on capital allocation. Our priorities remain unchanged. First and foremost, we invest in the business to position us for ongoing success, including making all the loans that meet our risk-return hurdles, while also continuing to invest in new products and champs, as well as data science and technology to further advance our competitive positions. We are also committed to our regular dividend, which at $4.16 per share annually yields 9% at today's price. In the quarter, we repurchased about 420,000 shares for approximately $19 million. Share repurchases will be an important part of our capital return strategy in the years to come. The pace of future by a number of factors, including our excess capital, capital needed for growth, economic conditions, and market dynamics. With that, let me turn the call over to Jamie.