OneMain Holdings, Inc. (NYSE:OMF) Q4 2022 Earnings Call Transcript

David Scharf: Got it. Very helpful. And then, just one quick follow-up, a clarification, I guess, from Micah. Did I hear you suggest in terms of degree of conservatism that existing reserve levels are effectively, if not contemplating, set at what is the higher end of your loss guidance this year? That if we come in at kind of the lower end of that 7%, 7.5% range, we’d likely see the ALL come down as well?

Micah Conrad: Yes. That’s exactly right. I think, with respect to the first point, David, I think, we’ve assumed 4.5% to 5% unemployment rate in the reserves. That kind of puts them at an 11.6% reserve ratio versus pre-COVID when we first truck CECL in January 2020 at 10.7%, so almost a full point above that. I think the reduction in the reserve ratio will really be a function of what the future looks like, as we’re always kind of pushing forward every quarter. And so, we could come in at the lower end of the charge-off range. And if the world doesn’t look great going forward we could still have those reserves in place. So that’s really something to watch out for as you think through where the year transpires.

Doug Shulman: Hey, everybody. Thanks for joining the call today. If you have follow-up, obviously, reach out to our team. I hope everyone has a good day and we look forward to continuing to talk about the business with all of you over the next several weeks months and next quarter. So thanks for joining.

Operator: Thank you. This does conclude today’s OneMain financial fourth quarter and full year 2022 earnings conference call. Please disconnect your lines at this time and have a wonderful day.