Regional Management Corp. Announces Third Quarter 2024 Results
Regional Management Corp. (NYSE: RM) reported third quarter 2024 results with net income of $7.7 million and diluted earnings per share of $0.76, impacted by $4.3 million due to hurricane events. The company achieved record revenue of $146.3 million and net finance receivables of $1.8 billion, driven by $46 million sequential portfolio growth. Credit performance improved with a net credit loss rate of 10.6% and 30+ day delinquency rate of 6.9%, both showing 40 basis points improvement year-over-year. Operating expenses increased only 0.6% with an improved ratio of 13.9%. The Board declared a dividend of $0.30 per share for Q4 2024.
Regional Management Corp. (NYSE: RM) ha riportato i risultati per il terzo trimestre del 2024, con un utile netto di 7,7 milioni di dollari e un utile per azione diluito di 0,76 dollari, influenzati da 4,3 milioni di dollari a causa di eventi legati agli uragani. L'azienda ha raggiunto un fatturato record di 146,3 milioni di dollari e crediti finanziari netti di 1,8 miliardi di dollari, sostenuti da una crescita sequenziale del portafoglio di 46 milioni di dollari. Le prestazioni creditizie sono migliorate con un tasso di perdita netta su crediti del 10,6% e un tasso di insolvenza oltre 30 giorni del 6,9%, entrambi mostrando un miglioramento di 40 punti base rispetto all'anno precedente. Le spese operative sono aumentate solo dello 0,6% con un rapporto migliorato del 13,9%. Il Consiglio ha dichiarato un dividendo di 0,30 dollari per azione per il quarto trimestre del 2024.
Regional Management Corp. (NYSE: RM) reportó los resultados del tercer trimestre de 2024 con un ingreso neto de 7,7 millones de dólares y ganancias por acción diluidas de 0,76 dólares, impactados por 4,3 millones de dólares debido a eventos de huracanes. La compañía logró un ingreso récord de 146,3 millones de dólares y cuentas por cobrar financieras netas de 1,8 mil millones de dólares, impulsados por un crecimiento secuencial de portafolio de 46 millones de dólares. El rendimiento crediticio mejoró con una tasa de pérdida crediticia neta del 10,6% y una tasa de morosidad a 30 días superior del 6,9%, ambos mostrando una mejora de 40 puntos básicos interanual. Los gastos operativos aumentaron solo un 0,6% con una relación mejorada del 13,9%. La Junta declaró un dividendo de 0,30 dólares por acción para el cuarto trimestre de 2024.
지역 관리 법인 (NYSE: RM)은 2024년 3분기 결과를 보고하며 순이익 770만 달러와 희석 주당순이익 0.76 달러를 기록했습니다. 이번 실적은 허리케인 관련 사건으로 인해 430만 달러의 영향을 받았습니다. 이 회사는 146.3백만 달러의 기록된 수익과 18억 달러의 순 금융 채권을 달성했으며, 이는 4600만 달러의 순차적 포트폴리오 성장의 결과입니다. 신용 성과는 순 신용 손실률 10.6%와 30일 이상 연체율 6.9%로 개선되었으며, 두 수치 모두 전년 대비 40 베이시스 포인트 향상되었습니다. 운영 비용은 0.6%만 증가했으며 비율은 13.9%로 개선되었습니다. 이사회는 2024년 4분기 주당 0.30달러의 배당금을 선언했습니다.
Regional Management Corp. (NYSE: RM) a annoncé les résultats du troisième trimestre 2024 avec un revenu net de 7,7 millions de dollars et un bénéfice par action dilué de 0,76 dollar, impacté par 4,3 millions de dollars en raison d'événements liés aux ouragans. L'entreprise a réalisé un chiffre d'affaires record de 146,3 millions de dollars et des créances financières nettes de 1,8 milliard de dollars, soutenus par une croissance séquentielle du portefeuille de 46 millions de dollars. La performance de crédit s'est améliorée avec un taux de perte nette sur créances de 10,6 % et un taux de délinquance de plus de 30 jours de 6,9 %, les deux montrant une amélioration de 40 points de base par rapport à l'année précédente. Les charges d'exploitation ont augmenté de seulement 0,6 % avec un ratio amélioré de 13,9 %. Le Conseil a déclaré un dividende de 0,30 dollar par action pour le quatrième trimestre 2024.
Regional Management Corp. (NYSE: RM) hat die Ergebnisse des dritten Quartals 2024 bekannt gegeben, mit einem Nettoeinkommen von 7,7 Millionen Dollar und einem verwässerten Gewinn pro Aktie von 0,76 Dollar, beeinflusst durch 4,3 Millionen Dollar aufgrund von Hurrikans. Das Unternehmen erzielte Rekordumsätze von 146,3 Millionen Dollar und netto Finanzforderungen von 1,8 Milliarden Dollar, angetrieben durch ein sequenzielles Portfoliowachstum von 46 Millionen Dollar. Die Kreditperformance verbesserte sich mit einer Nettoausfallrate von 10,6% und einer über 30 Tagen fälligen Delinquenzrate von 6,9%, beide zeigten eine Verbesserung von 40 Basispunkten im Jahresvergleich. Die Betriebskosten stiegen nur um 0,6% bei einem verbesserten Verhältnis von 13,9%. Der Vorstand erklärte eine Dividende von 0,30 Dollar pro Aktie für das 4. Quartal 2024.
- Record revenue of $146.3 million, up 3.9% year-over-year
- Portfolio growth of $46 million to $1.8 billion, representing 10% annualized growth
- Interest and fee yield improved by 90 basis points to 29.9%
- 40 basis point improvement in net credit loss rate to 10.6%
- Operating expense ratio improved by 50 basis points to 13.9%
- $4.3 million negative impact from hurricane events
- $2.1 million additional provision for hurricane-related credit losses
- $3.5 million in increased property insurance claims and reserves
- Total revenue yield decreased 10 basis points year-over-year
- Provision for credit losses increased by $3.4 million (6.7%) year-over-year
Insights
Regional Management delivered a mixed Q3 2024 performance marked by record revenue and portfolio growth, despite hurricane-related challenges. The
Key positives include improved credit metrics with net credit losses at
The company maintains solid liquidity with
- Net income of
- Record revenue and ending net receivables driven by
- Net credit loss rate of
- Continued expense discipline with operating expense increasing only
“Our team once again delivered strong results in the third quarter, and our credit performance continues to improve,” said Robert W. Beck, President and Chief Executive Officer of Regional Management Corp. “We generated net income of
“Despite the hurricane challenges, we grew our portfolio by
“Overall, our credit quality has improved and we have observed positive trends in our credit metrics in recent quarters, as we have maintained a tight credit box while also increasing the growth of our higher-margin small loan portfolio,” continued Mr. Beck. “Higher-quality originations in our front book continue to perform in line with our expectations, make up a larger portion of our portfolio, and are delivering at lower loss levels than our stressed back book vintages. Looking ahead, we will continue to monitor the economic environment, competitive dynamics, consumer health, and other factors as we allocate capital to grow the different pieces of our portfolio. Ultimately, we will build our portfolio in a way that will generate strong margins that meet our return hurdles and optimize short- and long-term results, while also appropriately balancing credit outcomes and customer needs.”
Third Quarter 2024 Highlights
-
Net income for the third quarter of 2024 was
and diluted earnings per share was$7.7 million , inclusive of a$0.76 , or$4.3 million per share, impact due to hurricanes occurring in the third quarter of 2024.$0.42 -
Net income also reflects the impact of
of sequential portfolio growth in the third quarter, which required a$46.0 million provision for credit losses, or$4.6 million after tax. The company is required to reserve for expected lifetime credit losses at origination of each loan, while the revenue benefits are recognized over the life of the loan, highlighting the impact of portfolio growth on our income statement.$3.5 million
-
Net income also reflects the impact of
-
Record net finance receivables as of September 30, 2024 of
, an increase of$1.8 billion , or$68.7 million 3.9% , from the prior-year period.-
Large loan net finance receivables of
increased$1.3 billion , or$21.5 million 1.7% , from the prior-year period and represented71.1% of the total loan portfolio, compared to72.6% in the prior-year period. -
Small loan net finance receivables of
increased$524.8 million , or$50.6 million 10.7% , from the prior-year period and represented28.8% of the total loan portfolio, compared to27.1% in the prior-year period. -
Net finance receivables with annual percentage rates (APRs) above
36% increased to17.8% of the portfolio from14.9% in the prior-year period, driven by the increase in the higher-margin small loan portfolio. -
Customer accounts increased by
5.1% from the prior-year period.
-
Large loan net finance receivables of
-
Record total revenue for the third quarter of 2024 of
, an increase of$146.3 million , or$5.5 million 3.9% , from the prior-year period, primarily due to growth in average net finance receivables and 90 basis points of higher interest and fee yield compared to the prior-year period.- The increase in interest and fee yield is attributable to increased pricing, growth of the higher-margin small loan portfolio, and improved credit performance.
- Large loan interest and fee yield increased by 40 basis points, while the interest and fee yield of the higher-margin small loan portfolio increased by 120 basis points.
-
Total revenue yield decreased 10 basis points year-over-year primarily due to
, or 80 basis points, in increased property insurance claims and reserves related to hurricanes occurring during the third quarter of 2024.$3.5 million
-
Provision for credit losses for the third quarter of 2024 was
, an increase of$54.3 million , or$3.4 million 6.7% , from the prior-year period, inclusive of a incremental provision for credit losses associated with third quarter hurricane activity.$2.1 million -
Annualized net credit losses as a percentage of average net finance receivables for the third quarter of 2024 were
10.6% , a 40 basis point improvement compared to11.0% in the prior-year period. The third quarter 2024 net credit loss rate is inclusive of an estimated 30 basis point impact from year-over-year growth of the higher-rate small loan portfolio. -
The provision for credit losses for the third quarter of 2024 included a reserve increase of
, or$6.7 million after tax, primarily related to portfolio growth ($5.1 million of provision) and hurricanes ($4.6 million of provision) occurring during the third quarter of 2024.$2.1 million -
Allowance for credit losses was
as of September 30, 2024, or$192.1 million 10.6% of net finance receivables, a 10 basis point increase sequentially from10.5% due to 20 basis points of impact for estimated credit losses related to hurricanes occurring during the third quarter of 2024.
-
Annualized net credit losses as a percentage of average net finance receivables for the third quarter of 2024 were
-
As of September 30, 2024, 30+ day contractual delinquencies totaled
, or$126.0 million 6.9% of net finance receivables, comparable sequentially and a 40 basis point improvement from September 30, 2023. The third quarter 2024 delinquency rate is inclusive of an estimated 20 basis point impact from year-over-year growth of the higher-rate small loan portfolio and a 40 basis point benefit from special borrower assistance programs offered to customers impacted by the hurricanes.-
The delinquency rate of the large loan portfolio was
5.9% as of the end of the third quarter of 2024, a 60 basis point improvement from the prior-year period. -
The delinquency rate of the small loan portfolio was
9.4% as of the end of the third quarter of 2024, a 20 basis point improvement from the prior-year period. - The third quarter 2024 delinquency rate for the small loan portfolio is inclusive of a 30 basis point impact from the year-over-year shift within the portfolio to higher-APR loans. The current-quarter delinquency rates for the large and small loan portfolios also each include 40 basis points of benefit from special borrower assistance programs offered to customers impacted by the hurricanes.
-
The delinquency rate of the large loan portfolio was
-
General and administrative expenses for the third quarter of 2024 were
, an increase of$62.5 million , or$0.4 million 0.6% , from the prior-year period. The operating expense ratio (annualized general and administrative expenses as a percentage of average net finance receivables) for the third quarter of 2024 was13.9% , a 50 basis point improvement from14.4% in the prior-year period.
Fourth Quarter 2024 Dividend
The company’s Board of Directors has declared a dividend of
Liquidity and Capital Resources
As of September 30, 2024, the company had net finance receivables of
-
on the company’s$173.7 million senior revolving credit facility,$355 million -
on the company’s aggregate$76.1 million revolving warehouse credit facilities, and$375 million -
through the company’s asset-backed securitizations.$1.1 billion
As of September 30, 2024, the company’s unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was
The company had a funded debt-to-equity ratio of 4.0 to 1.0 and a stockholders’ equity ratio of
Conference Call Information
Regional Management Corp. will host a conference call and webcast today at 5:00 PM ET to discuss these results.
The dial-in number for the conference call is (855) 327-6837 (toll-free) or (631) 891-4304 (direct). Please dial the number 10 minutes prior to the scheduled start time.
*** A supplemental slide presentation will be made available on Regional’s website prior to the earnings call at www.RegionalManagement.com. ***
In addition, a live webcast of the conference call will be available on Regional’s website at www.RegionalManagement.com.
A webcast replay of the call will be available at www.RegionalManagement.com for one year following the call.
About Regional Management Corp.
Regional Management Corp. (NYSE: RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name “Regional Finance” online and in branch locations in 19 states across
Forward-Looking Statements
This press release may contain various “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 Regional Management Corp.’s expectations or beliefs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlooks or future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “outlook,” and similar expressions may be used to identify these forward-looking statements. Such forward-looking statements speak only as of the date on which they were made and are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. As a result, actual performance and results may differ materially from those contemplated by these forward-looking statements. Therefore, investors should not place undue reliance on forward-looking statements.
Factors that could cause actual results or performance to differ from the expectations expressed or implied in forward-looking statements include, but are not limited to, the following: managing growth effectively, implementing Regional Management’s growth strategy, and opening new branches as planned; Regional Management’s convenience check strategy; Regional Management’s policies and procedures for underwriting, processing, and servicing loans; Regional Management’s ability to collect on its loan portfolio; Regional Management’s insurance operations; exposure to credit risk and repayment risk, which risks may increase in light of adverse or recessionary economic conditions; the implementation of evolving underwriting models and processes, including as to the effectiveness of Regional Management's custom scorecards; changes in the competitive environment in which Regional Management operates or a decrease in the demand for its products; the geographic concentration of Regional Management’s loan portfolio; the failure of third-party service providers, including those providing information technology products; changes in economic conditions in the markets Regional Management serves, including levels of unemployment and bankruptcies; the ability to achieve successful acquisitions and strategic alliances; the ability to make technological improvements as quickly as competitors; security breaches, cyber-attacks, failures in information systems, or fraudulent activity; the ability to originate loans; reliance on information technology resources and providers, including the risk of prolonged system outages; changes in current revenue and expense trends, including trends affecting delinquencies and credit losses; any future public health crises, including the impact of such crisis on our operations and financial condition; changes in operating and administrative expenses; the departure, transition, or replacement of key personnel; the ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support Regional Management’s operations and initiatives; changes in interest rates; existing sources of liquidity may become insufficient or access to these sources may become unexpectedly restricted; exposure to financial risk due to asset-backed securitization transactions; risks related to regulation and legal proceedings, including changes in laws or regulations or in the interpretation or enforcement of laws or regulations; changes in accounting standards, rules, and interpretations and the failure of related assumptions and estimates; the impact of changes in tax laws and guidance, including the timing and amount of revenues that may be recognized; risks related to the ownership of Regional Management’s common stock, including volatility in the market price of shares of Regional Management’s common stock; the timing and amount of future cash dividend payments; and anti-takeover provisions in Regional Management’s charter documents and applicable state law.
The foregoing factors and others are discussed in greater detail in Regional Management’s filings with the Securities and Exchange Commission. Regional Management will not update or revise forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments, or otherwise, except as required by law. Regional Management is not responsible for changes made to this document by wire services or Internet services.
Regional Management Corp. and Subsidiaries |
||||||||||||||||||||||||||||||||
Consolidated Statements of Income |
||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||
(dollars in thousands, except per share amounts) |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Better (Worse) |
|
|
|
|
|
|
|
|
Better (Worse) |
|
||||||||||||||
|
|
3Q 24 |
|
|
3Q 23 |
|
|
$ |
|
|
% |
|
|
YTD 24 |
|
|
YTD 23 |
|
|
$ |
|
|
% |
|
||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest and fee income |
|
$ |
133,932 |
|
|
$ |
125,018 |
|
|
$ |
8,914 |
|
|
|
7.1 |
% |
|
$ |
390,648 |
|
|
$ |
363,508 |
|
|
$ |
27,140 |
|
|
|
7.5 |
% |
Insurance income, net |
|
|
7,422 |
|
|
|
11,382 |
|
|
|
(3,960 |
) |
|
|
(34.8 |
)% |
|
|
28,903 |
|
|
|
33,544 |
|
|
|
(4,641 |
) |
|
|
(13.8 |
)% |
Other income |
|
|
4,984 |
|
|
|
4,478 |
|
|
|
506 |
|
|
|
11.3 |
% |
|
|
14,120 |
|
|
|
12,688 |
|
|
|
1,432 |
|
|
|
11.3 |
% |
Total revenue |
|
|
146,338 |
|
|
|
140,878 |
|
|
|
5,460 |
|
|
|
3.9 |
% |
|
|
433,671 |
|
|
|
409,740 |
|
|
|
23,931 |
|
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Provision for credit losses |
|
|
54,349 |
|
|
|
50,930 |
|
|
|
(3,419 |
) |
|
|
(6.7 |
)% |
|
|
154,574 |
|
|
|
151,149 |
|
|
|
(3,425 |
) |
|
|
(2.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Personnel |
|
|
38,323 |
|
|
|
39,832 |
|
|
|
1,509 |
|
|
|
3.8 |
% |
|
|
113,240 |
|
|
|
114,848 |
|
|
|
1,608 |
|
|
|
1.4 |
% |
Occupancy |
|
|
6,551 |
|
|
|
6,315 |
|
|
|
(236 |
) |
|
|
(3.7 |
)% |
|
|
19,075 |
|
|
|
18,761 |
|
|
|
(314 |
) |
|
|
(1.7 |
)% |
Marketing |
|
|
5,078 |
|
|
|
4,077 |
|
|
|
(1,001 |
) |
|
|
(24.6 |
)% |
|
|
14,229 |
|
|
|
11,300 |
|
|
|
(2,929 |
) |
|
|
(25.9 |
)% |
Other |
|
|
12,516 |
|
|
|
11,880 |
|
|
|
(636 |
) |
|
|
(5.4 |
)% |
|
|
36,508 |
|
|
|
33,414 |
|
|
|
(3,094 |
) |
|
|
(9.3 |
)% |
Total general and administrative |
|
|
62,468 |
|
|
|
62,104 |
|
|
|
(364 |
) |
|
|
(0.6 |
)% |
|
|
183,052 |
|
|
|
178,323 |
|
|
|
(4,729 |
) |
|
|
(2.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
19,356 |
|
|
|
16,947 |
|
|
|
(2,409 |
) |
|
|
(14.2 |
)% |
|
|
54,725 |
|
|
|
49,953 |
|
|
|
(4,772 |
) |
|
|
(9.6 |
)% |
Income before income taxes |
|
|
10,165 |
|
|
|
10,897 |
|
|
|
(732 |
) |
|
|
(6.7 |
)% |
|
|
41,320 |
|
|
|
30,315 |
|
|
|
11,005 |
|
|
|
36.3 |
% |
Income taxes |
|
|
2,502 |
|
|
|
2,077 |
|
|
|
(425 |
) |
|
|
(20.5 |
)% |
|
|
10,007 |
|
|
|
6,783 |
|
|
|
(3,224 |
) |
|
|
(47.5 |
)% |
Net income |
|
$ |
7,663 |
|
|
$ |
8,820 |
|
|
$ |
(1,157 |
) |
|
|
(13.1 |
)% |
|
$ |
31,313 |
|
|
$ |
23,532 |
|
|
$ |
7,781 |
|
|
|
33.1 |
% |
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.79 |
|
|
$ |
0.94 |
|
|
$ |
(0.15 |
) |
|
|
(16.0 |
)% |
|
$ |
3.25 |
|
|
$ |
2.51 |
|
|
$ |
0.74 |
|
|
|
29.5 |
% |
Diluted |
|
$ |
0.76 |
|
|
$ |
0.91 |
|
|
$ |
(0.15 |
) |
|
|
(16.5 |
)% |
|
$ |
3.16 |
|
|
$ |
2.45 |
|
|
$ |
0.71 |
|
|
|
29.0 |
% |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
9,683 |
|
|
|
9,429 |
|
|
|
(254 |
) |
|
|
(2.7 |
)% |
|
|
9,622 |
|
|
|
9,385 |
|
|
|
(237 |
) |
|
|
(2.5 |
)% |
Diluted |
|
|
10,090 |
|
|
|
9,650 |
|
|
|
(440 |
) |
|
|
(4.6 |
)% |
|
|
9,900 |
|
|
|
9,613 |
|
|
|
(287 |
) |
|
|
(3.0 |
)% |
Return on average assets (annualized) |
|
|
1.7 |
% |
|
|
2.0 |
% |
|
|
|
|
|
|
|
|
2.3 |
% |
|
|
1.8 |
% |
|
|
|
|
|
|
||||
Return on average equity (annualized) |
|
|
8.7 |
% |
|
|
10.8 |
% |
|
|
|
|
|
|
|
|
12.3 |
% |
|
|
9.8 |
% |
|
|
|
|
|
|
Regional Management Corp. and Subsidiaries |
||||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(dollars in thousands, except par value amounts) |
||||||||||||||||
|
|
|
|
|
|
|
|
Increase (Decrease) |
|
|||||||
|
|
3Q 24 |
|
|
3Q 23 |
|
|
$ |
|
|
% |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash |
|
$ |
4,745 |
|
|
$ |
7,413 |
|
|
$ |
(2,668 |
) |
|
|
(36.0 |
)% |
Net finance receivables |
|
|
1,819,756 |
|
|
|
1,751,009 |
|
|
|
68,747 |
|
|
|
3.9 |
% |
Unearned insurance premiums |
|
|
(46,508 |
) |
|
|
(48,764 |
) |
|
|
2,256 |
|
|
|
4.6 |
% |
Allowance for credit losses |
|
|
(192,100 |
) |
|
|
(184,900 |
) |
|
|
(7,200 |
) |
|
|
(3.9 |
)% |
Net finance receivables, less unearned insurance premiums and allowance for credit losses |
|
|
1,581,148 |
|
|
|
1,517,345 |
|
|
|
63,803 |
|
|
|
4.2 |
% |
Restricted cash |
|
|
115,576 |
|
|
|
117,029 |
|
|
|
(1,453 |
) |
|
|
(1.2 |
)% |
Lease assets |
|
|
37,229 |
|
|
|
34,864 |
|
|
|
2,365 |
|
|
|
6.8 |
% |
Intangible assets |
|
|
22,250 |
|
|
|
15,048 |
|
|
|
7,202 |
|
|
|
47.9 |
% |
Restricted available-for-sale investments |
|
|
21,727 |
|
|
|
22,510 |
|
|
|
(783 |
) |
|
|
(3.5 |
)% |
Property and equipment |
|
|
13,425 |
|
|
|
14,157 |
|
|
|
(732 |
) |
|
|
(5.2 |
)% |
Deferred tax assets, net |
|
|
11,833 |
|
|
|
14,140 |
|
|
|
(2,307 |
) |
|
|
(16.3 |
)% |
Other assets |
|
|
13,898 |
|
|
|
22,834 |
|
|
|
(8,936 |
) |
|
|
(39.1 |
)% |
Total assets |
|
$ |
1,821,831 |
|
|
$ |
1,765,340 |
|
|
$ |
56,491 |
|
|
|
3.2 |
% |
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt |
|
$ |
1,395,892 |
|
|
$ |
1,372,748 |
|
|
$ |
23,144 |
|
|
|
1.7 |
% |
Unamortized debt issuance costs |
|
|
(4,645 |
) |
|
|
(5,647 |
) |
|
|
1,002 |
|
|
|
17.7 |
% |
Net debt |
|
|
1,391,247 |
|
|
|
1,367,101 |
|
|
|
24,146 |
|
|
|
1.8 |
% |
Lease liabilities |
|
|
39,350 |
|
|
|
37,095 |
|
|
|
2,255 |
|
|
|
6.1 |
% |
Accounts payable and accrued expenses |
|
|
38,306 |
|
|
|
30,559 |
|
|
|
7,747 |
|
|
|
25.4 |
% |
Total liabilities |
|
|
1,468,903 |
|
|
|
1,434,755 |
|
|
|
34,148 |
|
|
|
2.4 |
% |
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Preferred stock ( |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock ( |
|
|
1,497 |
|
|
|
1,464 |
|
|
|
33 |
|
|
|
2.3 |
% |
Additional paid-in capital |
|
|
129,936 |
|
|
|
119,507 |
|
|
|
10,429 |
|
|
|
8.7 |
% |
Retained earnings |
|
|
371,725 |
|
|
|
360,155 |
|
|
|
11,570 |
|
|
|
3.2 |
% |
Accumulated other comprehensive loss |
|
|
(87 |
) |
|
|
(398 |
) |
|
|
311 |
|
|
|
78.1 |
% |
Treasury stock (4,807 shares at September 30, 2024 and September 30, 2023) |
|
|
(150,143 |
) |
|
|
(150,143 |
) |
|
|
— |
|
|
|
— |
|
Total stockholders’ equity |
|
|
352,928 |
|
|
|
330,585 |
|
|
|
22,343 |
|
|
|
6.8 |
% |
Total liabilities and stockholders’ equity |
|
$ |
1,821,831 |
|
|
$ |
1,765,340 |
|
|
$ |
56,491 |
|
|
|
3.2 |
% |
Regional Management Corp. and Subsidiaries |
||||||||||||||||||||||||||||
Selected Financial Data |
||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||
(dollars in thousands, except per share amounts) |
||||||||||||||||||||||||||||
|
|
Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
3Q 24 |
|
|
2Q 24 |
|
|
QoQ $
|
|
|
QoQ %
|
|
|
3Q 23 |
|
|
YoY $
|
|
|
YoY %
|
|
|||||||
Large loans |
|
$ |
1,293,410 |
|
|
$ |
1,266,032 |
|
|
$ |
27,378 |
|
|
|
2.2 |
% |
|
$ |
1,271,891 |
|
|
$ |
21,519 |
|
|
|
1.7 |
% |
Small loans |
|
|
524,826 |
|
|
|
505,640 |
|
|
|
19,186 |
|
|
|
3.8 |
% |
|
|
474,181 |
|
|
|
50,645 |
|
|
|
10.7 |
% |
Retail loans |
|
|
1,520 |
|
|
|
2,071 |
|
|
|
(551 |
) |
|
|
(26.6 |
)% |
|
|
4,937 |
|
|
|
(3,417 |
) |
|
|
(69.2 |
)% |
Total net finance receivables |
|
$ |
1,819,756 |
|
|
$ |
1,773,743 |
|
|
$ |
46,013 |
|
|
|
2.6 |
% |
|
$ |
1,751,009 |
|
|
$ |
68,747 |
|
|
|
3.9 |
% |
Number of branches at period end |
|
|
340 |
|
|
|
343 |
|
|
|
(3 |
) |
|
|
(0.9 |
)% |
|
|
347 |
|
|
|
(7 |
) |
|
|
(2.0 |
)% |
Net finance receivables per branch |
|
$ |
5,352 |
|
|
$ |
5,171 |
|
|
$ |
181 |
|
|
|
3.5 |
% |
|
$ |
5,046 |
|
|
$ |
306 |
|
|
|
6.1 |
% |
|
|
Averages and Yields |
|
|||||||||||||||||||||
|
|
3Q 24 |
|
|
2Q 24 |
|
|
3Q 23 |
|
|||||||||||||||
|
|
Average Net Finance Receivables |
|
|
Average
|
|
|
Average Net Finance Receivables |
|
|
Average
|
|
|
Average Net Finance Receivables |
|
|
Average
|
|
||||||
Large loans |
|
$ |
1,279,720 |
|
|
|
26.7 |
% |
|
$ |
1,255,729 |
|
|
|
26.1 |
% |
|
$ |
1,257,168 |
|
|
|
26.3 |
% |
Small loans |
|
|
511,294 |
|
|
|
37.8 |
% |
|
|
490,615 |
|
|
|
37.3 |
% |
|
|
459,320 |
|
|
|
36.6 |
% |
Retail loans |
|
|
1,795 |
|
|
|
16.3 |
% |
|
|
2,433 |
|
|
|
16.6 |
% |
|
|
5,647 |
|
|
|
16.9 |
% |
Total interest and fee yield |
|
$ |
1,792,809 |
|
|
|
29.9 |
% |
|
$ |
1,748,777 |
|
|
|
29.3 |
% |
|
$ |
1,722,135 |
|
|
|
29.0 |
% |
Total revenue yield |
|
$ |
1,792,809 |
|
|
|
32.6 |
% |
|
$ |
1,748,777 |
|
|
|
32.7 |
% |
|
$ |
1,722,135 |
|
|
|
32.7 |
% |
(1) Annualized interest and fee income as a percentage of average net finance receivables.
|
|
Components of Increase in Interest and Fee Income |
|
|||||||||||||
|
|
3Q 24 Compared to 3Q 23 |
|
|||||||||||||
|
|
Increase (Decrease) |
|
|||||||||||||
|
|
Volume |
|
|
Rate |
|
|
Volume & Rate |
|
|
Total |
|
||||
Large loans |
|
$ |
1,484 |
|
|
$ |
1,246 |
|
|
$ |
23 |
|
|
$ |
2,753 |
|
Small loans |
|
|
4,757 |
|
|
|
1,410 |
|
|
|
159 |
|
|
|
6,326 |
|
Retail loans |
|
|
(162 |
) |
|
|
(8 |
) |
|
|
5 |
|
|
|
(165 |
) |
Product mix |
|
|
(948 |
) |
|
|
986 |
|
|
|
(38 |
) |
|
|
— |
|
Total increase in interest and fee income |
|
$ |
5,131 |
|
|
$ |
3,634 |
|
|
$ |
149 |
|
|
$ |
8,914 |
|
|
|
Loans Originated (1) |
|
|||||||||||||||||||||||||
|
|
3Q 24 |
|
|
2Q 24 |
|
|
QoQ $
|
|
|
QoQ %
|
|
|
3Q 23 |
|
|
YoY $
|
|
|
YoY %
|
|
|||||||
Large loans |
|
$ |
251,563 |
|
|
$ |
254,779 |
|
|
$ |
(3,216 |
) |
|
|
(1.3 |
)% |
|
$ |
251,999 |
|
|
$ |
(436 |
) |
|
|
(0.2 |
)% |
Small loans |
|
|
174,632 |
|
|
|
171,282 |
|
|
|
3,350 |
|
|
|
2.0 |
% |
|
|
173,074 |
|
|
|
1,558 |
|
|
|
0.9 |
% |
Total loans originated |
|
$ |
426,195 |
|
|
$ |
426,061 |
|
|
$ |
134 |
|
|
|
— |
|
|
$ |
425,073 |
|
|
$ |
1,122 |
|
|
|
0.3 |
% |
(1) Represents the principal balance of loan originations and refinancings.
|
|
Other Key Metrics |
|
|||||||||
|
|
3Q 24 |
|
|
2Q 24 |
|
|
3Q 23 |
|
|||
Net credit losses |
|
$ |
47,649 |
|
|
$ |
55,502 |
|
|
$ |
47,430 |
|
Percentage of average net finance receivables (annualized) |
|
|
10.6 |
% |
|
|
12.7 |
% |
|
|
11.0 |
% |
Provision for credit losses |
|
$ |
54,349 |
|
|
$ |
53,802 |
|
|
$ |
50,930 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.1 |
% |
|
|
12.3 |
% |
|
|
11.8 |
% |
Percentage of total revenue |
|
|
37.1 |
% |
|
|
37.6 |
% |
|
|
36.2 |
% |
General and administrative expenses |
|
$ |
62,468 |
|
|
$ |
60,136 |
|
|
$ |
62,104 |
|
Percentage of average net finance receivables (annualized) |
|
|
13.9 |
% |
|
|
13.8 |
% |
|
|
14.4 |
% |
Percentage of total revenue |
|
|
42.7 |
% |
|
|
42.0 |
% |
|
|
44.1 |
% |
Same store results (1): |
|
|
|
|
|
|
|
|
|
|||
Net finance receivables at period-end |
|
$ |
1,815,187 |
|
|
$ |
1,759,075 |
|
|
$ |
1,684,757 |
|
Net finance receivable growth rate |
|
|
3.7 |
% |
|
|
4.5 |
% |
|
|
4.9 |
% |
Number of branches in calculation |
|
|
337 |
|
|
|
338 |
|
|
|
330 |
|
(1) Same store sales reflect the change in year-over-year sales for the comparable branch base. The comparable branch base includes those branches open for at least one year.
|
|
Contractual Delinquency |
|
|||||||||||||||||||||
|
|
3Q 24 |
|
|
2Q 24 |
|
|
3Q 23 |
|
|||||||||||||||
Allowance for credit losses |
|
$ |
192,100 |
|
|
|
10.6 |
% |
|
$ |
185,400 |
|
|
|
10.5 |
% |
|
$ |
184,900 |
|
|
|
10.6 |
% |
|
|
|
1,529,171 |
|
|
|
84.1 |
% |
|
|
1,497,219 |
|
|
|
84.4 |
% |
|
|
1,472,931 |
|
|
|
84.2 |
% |
1 to 29 days past due |
|
|
164,568 |
|
|
|
9.0 |
% |
|
|
153,788 |
|
|
|
8.7 |
% |
|
|
149,648 |
|
|
|
8.5 |
% |
Delinquent accounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
30 to 59 days |
|
|
35,300 |
|
|
|
1.9 |
% |
|
|
34,924 |
|
|
|
1.9 |
% |
|
|
36,502 |
|
|
|
2.1 |
% |
60 to 89 days |
|
|
27,704 |
|
|
|
1.5 |
% |
|
|
27,689 |
|
|
|
1.6 |
% |
|
|
28,130 |
|
|
|
1.6 |
% |
90 to 119 days |
|
|
23,964 |
|
|
|
1.4 |
% |
|
|
21,607 |
|
|
|
1.2 |
% |
|
|
23,420 |
|
|
|
1.3 |
% |
120 to 149 days |
|
|
22,544 |
|
|
|
1.2 |
% |
|
|
19,333 |
|
|
|
1.1 |
% |
|
|
21,309 |
|
|
|
1.2 |
% |
150 to 179 days |
|
|
16,505 |
|
|
|
0.9 |
% |
|
|
19,183 |
|
|
|
1.1 |
% |
|
|
19,069 |
|
|
|
1.1 |
% |
Total contractual delinquency |
|
$ |
126,017 |
|
|
|
6.9 |
% |
|
$ |
122,736 |
|
|
|
6.9 |
% |
|
$ |
128,430 |
|
|
|
7.3 |
% |
Total net finance receivables |
|
$ |
1,819,756 |
|
|
|
100.0 |
% |
|
$ |
1,773,743 |
|
|
|
100.0 |
% |
|
$ |
1,751,009 |
|
|
|
100.0 |
% |
1 day and over past due |
|
$ |
290,585 |
|
|
|
15.9 |
% |
|
$ |
276,524 |
|
|
|
15.6 |
% |
|
$ |
278,078 |
|
|
|
15.8 |
% |
|
|
Contractual Delinquency by Product |
|
|||||||||||||||||||||
|
|
3Q 24 |
|
|
2Q 24 |
|
|
3Q 23 |
|
|||||||||||||||
Large loans |
|
$ |
76,435 |
|
|
|
5.9 |
% |
|
$ |
76,432 |
|
|
|
6.0 |
% |
|
$ |
82,256 |
|
|
|
6.5 |
% |
Small loans |
|
|
49,351 |
|
|
|
9.4 |
% |
|
|
46,015 |
|
|
|
9.1 |
% |
|
|
45,438 |
|
|
|
9.6 |
% |
Retail loans |
|
|
231 |
|
|
|
15.2 |
% |
|
|
289 |
|
|
|
14.0 |
% |
|
|
736 |
|
|
|
14.9 |
% |
Total contractual delinquency |
|
$ |
126,017 |
|
|
|
6.9 |
% |
|
$ |
122,736 |
|
|
|
6.9 |
% |
|
$ |
128,430 |
|
|
|
7.3 |
% |
|
|
Income Statement Quarterly Trend |
|
|||||||||||||||||||||||||
|
|
3Q 23 |
|
|
4Q 23 |
|
|
1Q 24 |
|
|
2Q 24 |
|
|
3Q 24 |
|
|
QoQ $
|
|
|
YoY $
|
|
|||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest and fee income |
|
$ |
125,018 |
|
|
$ |
126,190 |
|
|
$ |
128,818 |
|
|
$ |
127,898 |
|
|
$ |
133,932 |
|
|
$ |
6,034 |
|
|
$ |
8,914 |
|
Insurance income, net |
|
|
11,382 |
|
|
|
10,985 |
|
|
|
10,974 |
|
|
|
10,507 |
|
|
|
7,422 |
|
|
|
(3,085 |
) |
|
|
(3,960 |
) |
Other income |
|
|
4,478 |
|
|
|
4,484 |
|
|
|
4,516 |
|
|
|
4,620 |
|
|
|
4,984 |
|
|
|
364 |
|
|
|
506 |
|
Total revenue |
|
|
140,878 |
|
|
|
141,659 |
|
|
|
144,308 |
|
|
|
143,025 |
|
|
|
146,338 |
|
|
|
3,313 |
|
|
|
5,460 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Provision for credit losses |
|
|
50,930 |
|
|
|
68,885 |
|
|
|
46,423 |
|
|
|
53,802 |
|
|
|
54,349 |
|
|
|
(547 |
) |
|
|
(3,419 |
) |
|
|
|
39,832 |
|
|
|
42,024 |
|
|
|
37,820 |
|
|
|
37,097 |
|
|
|
38,323 |
|
|
|
(1,226 |
) |
|
|
1,509 |
|
Occupancy |
|
|
6,315 |
|
|
|
6,268 |
|
|
|
6,375 |
|
|
|
6,149 |
|
|
|
6,551 |
|
|
|
(402 |
) |
|
|
(236 |
) |
Marketing |
|
|
4,077 |
|
|
|
4,474 |
|
|
|
4,315 |
|
|
|
4,836 |
|
|
|
5,078 |
|
|
|
(242 |
) |
|
|
(1,001 |
) |
Other |
|
|
11,880 |
|
|
|
12,030 |
|
|
|
11,938 |
|
|
|
12,054 |
|
|
|
12,516 |
|
|
|
(462 |
) |
|
|
(636 |
) |
Total general and administrative |
|
|
62,104 |
|
|
|
64,796 |
|
|
|
60,448 |
|
|
|
60,136 |
|
|
|
62,468 |
|
|
|
(2,332 |
) |
|
|
(364 |
) |
|
|
|
16,947 |
|
|
|
17,510 |
|
|
|
17,504 |
|
|
|
17,865 |
|
|
|
19,356 |
|
|
|
(1,491 |
) |
|
|
(2,409 |
) |
Income (loss) before income taxes |
|
|
10,897 |
|
|
|
(9,532 |
) |
|
|
19,933 |
|
|
|
11,222 |
|
|
|
10,165 |
|
|
|
(1,057 |
) |
|
|
(732 |
) |
Income taxes |
|
|
2,077 |
|
|
|
(1,958 |
) |
|
|
4,728 |
|
|
|
2,777 |
|
|
|
2,502 |
|
|
|
275 |
|
|
|
(425 |
) |
Net income (loss) |
|
$ |
8,820 |
|
|
$ |
(7,574 |
) |
|
$ |
15,205 |
|
|
$ |
8,445 |
|
|
$ |
7,663 |
|
|
$ |
(782 |
) |
|
$ |
(1,157 |
) |
Net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
0.94 |
|
|
$ |
(0.80 |
) |
|
$ |
1.59 |
|
|
$ |
0.88 |
|
|
$ |
0.79 |
|
|
$ |
(0.09 |
) |
|
$ |
(0.15 |
) |
Diluted |
|
$ |
0.91 |
|
|
$ |
(0.80 |
) |
|
$ |
1.56 |
|
|
$ |
0.86 |
|
|
$ |
0.76 |
|
|
$ |
(0.10 |
) |
|
$ |
(0.15 |
) |
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
|
9,429 |
|
|
|
9,437 |
|
|
|
9,569 |
|
|
|
9,613 |
|
|
|
9,683 |
|
|
|
(70 |
) |
|
|
(254 |
) |
Diluted |
|
|
9,650 |
|
|
|
9,437 |
|
|
|
9,746 |
|
|
|
9,863 |
|
|
|
10,090 |
|
|
|
(227 |
) |
|
|
(440 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Balance Sheet Quarterly Trend |
|
|||||||||||||||||||||||||
|
|
3Q 23 |
|
|
4Q 23 |
|
|
1Q 24 |
|
|
2Q 24 |
|
|
3Q 24 |
|
|
QoQ $
|
|
|
YoY $
|
|
|||||||
Total assets |
|
$ |
1,765,340 |
|
|
$ |
1,794,527 |
|
|
$ |
1,756,748 |
|
|
$ |
1,789,052 |
|
|
$ |
1,821,831 |
|
|
$ |
32,779 |
|
|
$ |
56,491 |
|
Net finance receivables |
|
$ |
1,751,009 |
|
|
$ |
1,771,410 |
|
|
$ |
1,744,286 |
|
|
$ |
1,773,743 |
|
|
$ |
1,819,756 |
|
|
$ |
46,013 |
|
|
$ |
68,747 |
|
Allowance for credit losses |
|
$ |
184,900 |
|
|
$ |
187,400 |
|
|
$ |
187,100 |
|
|
$ |
185,400 |
|
|
$ |
192,100 |
|
|
$ |
6,700 |
|
|
$ |
7,200 |
|
Debt |
|
$ |
1,372,748 |
|
|
$ |
1,399,814 |
|
|
$ |
1,358,795 |
|
|
$ |
1,378,449 |
|
|
$ |
1,395,892 |
|
|
$ |
17,443 |
|
|
$ |
23,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Other Key Metrics Quarterly Trend |
|
|||||||||||||||||||||||||
|
|
3Q 23 |
|
|
4Q 23 |
|
|
1Q 24 |
|
|
2Q 24 |
|
|
3Q 24 |
|
|
QoQ
|
|
|
YoY
|
|
|||||||
Interest and fee yield (annualized) |
|
|
29.0 |
% |
|
|
28.8 |
% |
|
|
29.3 |
% |
|
|
29.3 |
% |
|
|
29.9 |
% |
|
|
0.6 |
% |
|
|
0.9 |
% |
Efficiency ratio (1) |
|
|
44.1 |
% |
|
|
45.7 |
% |
|
|
41.9 |
% |
|
|
42.0 |
% |
|
|
42.7 |
% |
|
|
0.7 |
% |
|
|
(1.4 |
)% |
Operating expense ratio (2) |
|
|
14.4 |
% |
|
|
14.8 |
% |
|
|
13.7 |
% |
|
|
13.8 |
% |
|
|
13.9 |
% |
|
|
0.1 |
% |
|
|
(0.5 |
)% |
30+ contractual delinquency |
|
|
7.3 |
% |
|
|
6.9 |
% |
|
|
7.1 |
% |
|
|
6.9 |
% |
|
|
6.9 |
% |
|
|
— |
|
|
|
(0.4 |
)% |
Net credit loss ratio (3) |
|
|
11.0 |
% |
|
|
15.1 |
% |
|
|
10.6 |
% |
|
|
12.7 |
% |
|
|
10.6 |
% |
|
|
(2.1 |
)% |
|
|
(0.4 |
)% |
Book value per share |
|
$ |
33.61 |
|
|
$ |
33.02 |
|
|
$ |
34.10 |
|
|
$ |
33.96 |
|
|
$ |
34.72 |
|
|
$ |
0.76 |
|
|
$ |
1.11 |
|
(1) General and administrative expenses as a percentage of total revenue.
(2) Annualized general and administrative expenses as a percentage of average net finance receivables.
(3) Annualized net credit losses as a percentage of average net finance receivables.
|
|
Averages and Yields |
|
|||||||||||||
|
|
YTD 24 |
|
|
YTD 23 |
|
||||||||||
|
|
Average Net Finance Receivables |
|
|
Average
|
|
|
Average Net Finance Receivables |
|
|
Average
|
|
||||
Large loans |
|
$ |
1,266,363 |
|
|
|
26.3 |
% |
|
$ |
1,232,170 |
|
|
|
26.1 |
% |
Small loans |
|
|
497,987 |
|
|
|
37.7 |
% |
|
|
456,893 |
|
|
|
35.4 |
% |
Retail loans |
|
|
2,521 |
|
|
|
16.2 |
% |
|
|
7,252 |
|
|
|
17.5 |
% |
Total interest and fee yield |
|
$ |
1,766,871 |
|
|
|
29.5 |
% |
|
$ |
1,696,315 |
|
|
|
28.6 |
% |
Total revenue yield |
|
$ |
1,766,871 |
|
|
|
32.7 |
% |
|
$ |
1,696,315 |
|
|
|
32.2 |
% |
|
|
Components of Increase in Interest and Fee Income |
|
|||||||||||||
|
|
YTD 24 Compared to YTD 23 |
|
|||||||||||||
|
|
Increase (Decrease) |
|
|||||||||||||
|
|
Volume |
|
|
Rate |
|
|
Volume & Rate |
|
|
Total |
|
||||
Large loans |
|
$ |
6,695 |
|
|
$ |
1,651 |
|
|
$ |
46 |
|
|
$ |
8,392 |
|
Small loans |
|
|
10,910 |
|
|
|
7,784 |
|
|
|
700 |
|
|
|
19,394 |
|
Retail loans |
|
|
(621 |
) |
|
|
(72 |
) |
|
|
47 |
|
|
|
(646 |
) |
Product mix |
|
|
(1,864 |
) |
|
|
2,177 |
|
|
|
(313 |
) |
|
|
— |
|
Total increase in interest and fee income |
|
$ |
15,120 |
|
|
$ |
11,540 |
|
|
$ |
480 |
|
|
$ |
27,140 |
|
|
|
Loans Originated (1) |
|
|||||||||||||
|
|
YTD 24 |
|
|
YTD 23 |
|
|
YTD $
|
|
|
YTD %
|
|
||||
Large loans |
|
$ |
691,416 |
|
|
$ |
695,084 |
|
|
$ |
(3,668 |
) |
|
|
(0.5 |
)% |
Small loans |
|
|
487,195 |
|
|
|
432,018 |
|
|
|
55,177 |
|
|
|
12.8 |
% |
Retail loans |
|
|
— |
|
|
|
146 |
|
|
|
(146 |
) |
|
|
(100.0 |
)% |
Total loans originated |
|
$ |
1,178,611 |
|
|
$ |
1,127,248 |
|
|
$ |
51,363 |
|
|
|
4.6 |
% |
(1) Represents the principal balance of loan originations and refinancings.
|
|
Other Key Metrics |
|
|||||
|
|
YTD 24 |
|
|
YTD 23 |
|
||
Net credit losses |
|
$ |
149,874 |
|
|
$ |
145,049 |
|
Percentage of average net finance receivables (annualized) |
|
|
11.3 |
% |
|
|
11.4 |
% |
Provision for credit losses |
|
$ |
154,574 |
|
|
$ |
151,149 |
|
Percentage of average net finance receivables (annualized) |
|
|
11.7 |
% |
|
|
11.9 |
% |
Percentage of total revenue |
|
|
35.6 |
% |
|
|
36.9 |
% |
General and administrative expenses |
|
$ |
183,052 |
|
|
$ |
178,323 |
|
Percentage of average net finance receivables (annualized) |
|
|
13.8 |
% |
|
|
14.0 |
% |
Percentage of total revenue |
|
|
42.2 |
% |
|
|
43.5 |
% |
Non-GAAP Financial Measures
In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. The company’s management utilizes non-GAAP measures as additional metrics to aid in, and enhance, its understanding of the company’s financial results. Tangible equity and the funded debt-to-tangible equity ratio are non-GAAP measures that adjust GAAP measures to exclude intangible assets. Management uses these equity measures to evaluate and manage the company’s capital and leverage position. The company also believes that these equity measures are commonly used in the financial services industry and provide useful information to users of the company’s financial statements in the evaluation of its capital and leverage position.
This non-GAAP financial information should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. In addition, the company’s non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies. The following tables provide a reconciliation of GAAP measures to non-GAAP measures.
|
|
3Q 24 |
|
|
Debt |
|
$ |
1,395,892 |
|
|
|
|
352,928 |
|
Less: Intangible assets |
|
|
22,250 |
|
Tangible equity (non-GAAP) |
|
$ |
330,678 |
|
|
|
|
4.0 |
x |
Funded debt-to-tangible equity ratio (non-GAAP) |
|
|
4.2 |
x |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106633278/en/
Investor Relations
Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
Source: Regional Management Corp.
FAQ
What was Regional Management's (RM) net income for Q3 2024?
How much did hurricanes impact RM's Q3 2024 earnings?
What was RM's total revenue for Q3 2024?