- Net income of $8.4 million and diluted
earnings per share of $0.86, up 37% from $0.63 in the prior-year
period -
- Year-over-year growth in customer accounts,
originations, and revenue of 7%; revenue growth driven by 5% ending
net receivables growth and 80 bps increase in total revenue yield
-
- 30+ day contractual delinquency rate of 6.9%
as of June 30, 2024 -
- Continued expense discipline with operating
expense ratio of 13.8% -
Regional Management Corp. (NYSE: RM), a diversified consumer
finance company, today announced results for the second quarter
ended June 30, 2024.
“We are very pleased with our quarterly and year-to-date
results,” said Robert W. Beck, President and Chief Executive
Officer of Regional Management Corp. “We delivered $8.4 million of
net income in the second quarter, or $0.86 of diluted EPS. We grew
our portfolio by $29 million sequentially to $1.8 billion in the
quarter, up 5.0% from the prior year. Our interest and fee yield
increased 110 basis points year-over-year from a combination of
increased pricing, growth of our higher-margin small loan
portfolio, and improved credit performance. Our larger portfolio
and stronger yield combined to drive total revenue to $143 million
in the second quarter, up 7% from last year. At the same time, we
have maintained a tight grip on G&A expense while still
investing in our growth and strategic initiatives. Together, these
strong line item outcomes drove net income up 40% compared to the
second quarter of last year.”
“Along with our strong first half results, we continue to
carefully manage our portfolio’s credit quality and performance,”
added Mr. Beck. “Our 30+ day delinquency rate remained stable at
6.9% at the end of the quarter, 20 basis points better
sequentially. Our net credit loss rate improved 40 basis points
from the prior year, as the front book continues to perform in line
with our expectations and makes up a larger portion of our total
portfolio. We grew our small loan portfolio by $61 million, or 14%,
year-over-year, representing more than 70% of our total portfolio
growth over the past year. Our portfolio of loans with greater than
36% APR grew from 14% to 17% of the total portfolio over that same
time period. While these portfolios naturally come with higher
delinquencies and credit losses, it is an excellent trade given the
stronger margins and bottom-line returns that the portfolios
generate.”
“We had a very successful first half of 2024, posting strong
top- and bottom-line results despite the continued impacts of
inflation on credit performance,” continued Mr. Beck. “We remain
well-positioned to operate effectively through the current economic
cycle. As we expect credit losses to improve in the second half of
the year, we are excited to begin increasing our investment in our
strategic initiatives and portfolio growth, including through the
opening of ten new branch locations before year-end and continued
expansion of our higher-margin and auto-secured loan portfolios. We
look forward to continuing to deliver strong returns to our
shareholders while also investing in the business in a way that
will enable us to achieve additional, sustainable growth, improved
credit performance, and greater productivity, operating efficiency,
and leverage over the long-term.”
Second Quarter 2024 Highlights
- Net income for the second quarter of 2024 was $8.4 million and
diluted earnings per share was $0.86, up 37% from $0.63 in the
prior-year period.
- Net finance receivables as of June 30, 2024 were $1.8 billion,
an increase of $84.8 million, or 5.0%, from the prior-year period.
- Large loan net finance receivables of $1.3 billion increased
$28.0 million, or 2.3%, from the prior-year period and represented
71.4% of the total loan portfolio, compared to 73.3% in the
prior-year period.
- Small loan net finance receivables of $505.6 million increased
$61.1 million, or 13.7%, from the prior-year period and represented
28.5% of the total loan portfolio, compared to 26.3% in the
prior-year period.
- Net finance receivables with annual percentage rates (APRs)
above 36% increased to 17.2% of the portfolio from 13.9% in the
prior-year period.
- Total loan originations were $426.1 million in the second
quarter of 2024, an increase of $27.1 million, or 6.8%, from the
prior-year period, due to controlled growth from credit-tightening
actions.
- Total revenue for the second quarter of 2024 was $143.0
million, an increase of $9.5 million, or 7.1%, from the prior-year
period, primarily due to an increase in interest and fee income of
$9.8 million related to higher average net finance receivables and
110 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.
- Total revenue yield increased 80 basis points year-over-year,
30 basis points lower than the increase in interest and fee yield
due to lower insurance revenues.
- Provision for credit losses for the second quarter of 2024 was
$53.8 million, an increase of $1.3 million, or 2.4%, from the
prior-year period, due to higher net credit losses from higher
average net receivables ($0.6 million) and a lower provision
release compared to the prior-year period ($0.7 million).
- Annualized net credit losses as a percentage of average net
finance receivables for the second quarter of 2024 were 12.7%, a 40
basis point improvement compared to 13.1% in the prior-year period.
The second quarter 2024 net credit loss rate is inclusive of a 20
basis point impact from growth of the higher-rate, small loan
portfolio.
- The provision for credit losses for the second quarter of 2024
included a reserve reduction of $1.7 million primarily due to
changes in estimated future macroeconomic impacts on credit losses,
partially offset by portfolio growth during the quarter.
- Allowance for credit losses was $185.4 million as of June 30,
2024, or 10.5% of net finance receivables, a 20 basis point
decrease sequentially from 10.7% due to improved portfolio credit
quality and expectations for improving future macroeconomic
conditions.
- As of June 30, 2024, 30+ day contractual delinquencies totaled
$122.7 million, or 6.9% of net finance receivables, a 20 basis
point improvement sequentially and comparable to June 30, 2023. The
second quarter 2024 delinquency rate is inclusive of a 10 basis
point impact from growth of the higher-rate, small loan
portfolio.
- General and administrative expenses for the second quarter of
2024 were $60.1 million, an increase of $3.2 million from the
prior-year period. The operating expense ratio (annualized general
and administrative expenses as a percentage of average net finance
receivables) for the second quarter of 2024 was 13.8%. The
prior-year period included an insurance settlement benefit,
improving general and administrative expenses and the operating
expense ratio in the prior-year period by $1.0 million and 20 basis
points, respectively.
Third Quarter 2024 Dividend
The company’s Board of Directors has declared a dividend of
$0.30 per common share for the third quarter of 2024. The dividend
will be paid on September 12, 2024 to shareholders of record as of
the close of business on August 21, 2024. The declaration and
payment of any future dividend is subject to the discretion of the
Board of Directors and will depend on a variety of factors,
including the company’s financial condition and results of
operations.
Liquidity and Capital Resources
As of June 30, 2024, the company had net finance receivables of
$1.8 billion and debt of $1.4 billion. The debt consisted of:
- $145.7 million on the company’s $355 million senior revolving
credit facility,
- $21.4 million on the company’s aggregate $375 million revolving
warehouse credit facilities, and
- $1.2 billion through the company’s asset-backed
securitizations.
As of June 30, 2024, the company’s unused capacity to fund
future growth on its revolving credit facilities (subject to the
borrowing base) was $564 million, or 77.3%, and the company had
available liquidity of $149.4 million, including unrestricted cash
on hand and immediate availability to draw down cash from its
revolving credit facilities. As of June 30, 2024, the company’s
fixed-rate debt as a percentage of total debt was 88%, with a
weighted-average coupon of 4.2% and a weighted-average revolving
duration of 1.2 years.
The company had a funded debt-to-equity ratio of 4.0 to 1.0 and
a stockholders’ equity ratio of 19.3%, each as of June 30, 2024. On
a non-GAAP basis, the company had a funded debt-to-tangible equity
ratio of 4.2 to 1.0, as of June 30, 2024. Please refer to the
reconciliations of non-GAAP measures to comparable GAAP measures
included at the end of this press release.
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 the United States. Most of its loan products are
secured, and each is structured on a fixed-rate, fixed-term basis
with fully amortizing equal monthly installment payments, repayable
at any time without penalty. Regional Management sources loans
through its multiple channel platform, which includes branches,
centrally managed direct mail campaigns, digital partners, and its
consumer website. For more information, please visit
www.RegionalManagement.com.
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)
2Q 24
2Q 23
$
%
YTD 24
YTD 23
$
%
Revenue
Interest and fee income
$
127,898
$
118,083
$
9,815
8.3
%
$
256,716
$
238,490
$
18,226
7.6
%
Insurance income, net
10,507
11,203
(696
)
(6.2
)%
21,481
22,162
(681
)
(3.1
)%
Other income
4,620
4,198
422
10.1
%
9,136
8,210
926
11.3
%
Total revenue
143,025
133,484
9,541
7.1
%
287,333
268,862
18,471
6.9
%
Expenses
Provision for credit losses
53,802
52,551
(1,251
)
(2.4
)%
100,225
100,219
(6
)
—
Personnel
37,097
36,419
(678
)
(1.9
)%
74,917
75,016
99
0.1
%
Occupancy
6,149
6,158
9
0.1
%
12,524
12,446
(78
)
(0.6
)%
Marketing
4,836
3,844
(992
)
(25.8
)%
9,151
7,223
(1,928
)
(26.7
)%
Other
12,054
10,475
(1,579
)
(15.1
)%
23,992
21,534
(2,458
)
(11.4
)%
Total general and administrative
60,136
56,896
(3,240
)
(5.7
)%
120,584
116,219
(4,365
)
(3.8
)%
Interest expense
17,865
16,224
(1,641
)
(10.1
)%
35,369
33,006
(2,363
)
(7.2
)%
Income before income taxes
11,222
7,813
3,409
43.6
%
31,155
19,418
11,737
60.4
%
Income taxes
2,777
1,790
(987
)
(55.1
)%
7,505
4,706
(2,799
)
(59.5
)%
Net income
$
8,445
$
6,023
$
2,422
40.2
%
$
23,650
$
14,712
$
8,938
60.8
%
Net income per common share:
Basic
$
0.88
$
0.64
$
0.24
37.5
%
$
2.47
$
1.57
$
0.90
57.3
%
Diluted
$
0.86
$
0.63
$
0.23
36.5
%
$
2.41
$
1.53
$
0.88
57.5
%
Weighted-average common shares
outstanding:
Basic
9,613
9,399
(214
)
(2.3
)%
9,591
9,363
(228
)
(2.4
)%
Diluted
9,863
9,566
(297
)
(3.1
)%
9,805
9,595
(210
)
(2.2
)%
Return on average assets (annualized)
1.9
%
1.4
%
2.7
%
1.7
%
Return on average equity (annualized)
10.0
%
7.6
%
14.1
%
9.3
%
Regional Management Corp. and
Subsidiaries
Consolidated Balance
Sheets
(Unaudited)
(dollars in thousands, except
par value amounts)
Increase (Decrease)
2Q 24
2Q 23
$
%
Assets
Cash
$
4,323
$
10,330
$
(6,007
)
(58.2
)%
Net finance receivables
1,773,743
1,688,937
84,806
5.0
%
Unearned insurance premiums
(46,081
)
(49,059
)
2,978
6.1
%
Allowance for credit losses
(185,400
)
(181,400
)
(4,000
)
(2.2
)%
Net finance receivables, less unearned
insurance premiums and allowance for credit losses
1,542,262
1,458,478
83,784
5.7
%
Restricted cash
138,891
131,132
7,759
5.9
%
Lease assets
35,144
34,996
148
0.4
%
Intangible assets
19,264
13,949
5,315
38.1
%
Property and equipment
13,411
14,689
(1,278
)
(8.7
)%
Deferred tax assets, net
12,376
15,278
(2,902
)
(19.0
)%
Restricted available-for-sale
investments
2,157
20,298
(18,141
)
(89.4
)%
Other assets
21,224
24,466
(3,242
)
(13.3
)%
Total assets
$
1,789,052
$
1,723,616
$
65,436
3.8
%
Liabilities and Stockholders’
Equity
Liabilities:
Debt
$
1,378,449
$
1,344,855
$
33,594
2.5
%
Unamortized debt issuance costs
(5,616
)
(6,923
)
1,307
18.9
%
Net debt
1,372,833
1,337,932
34,901
2.6
%
Lease liabilities
37,286
37,150
136
0.4
%
Accounts payable and accrued expenses
34,030
27,032
6,998
25.9
%
Total liabilities
1,444,149
1,402,114
42,035
3.0
%
Stockholders’ equity:
Preferred stock ($0.10 par value, 100,000
shares authorized, none issued or outstanding)
—
—
—
—
Common stock ($0.10 par value, 1,000,000
shares authorized, 14,962 shares issued and 10,156 shares
outstanding at June 30, 2024 and 14,636 shares issued and 9,829
shares outstanding at June 30, 2023)
1,496
1,464
32
2.2
%
Additional paid-in capital
126,373
116,202
10,171
8.8
%
Retained earnings
367,216
354,346
12,870
3.6
%
Accumulated other comprehensive loss
(39
)
(367
)
328
89.4
%
Treasury stock (4,807 shares at June 30,
2024 and June 30, 2023)
(150,143
)
(150,143
)
—
—
Total stockholders’ equity
344,903
321,502
23,401
7.3
%
Total liabilities and stockholders’
equity
$
1,789,052
$
1,723,616
$
65,436
3.8
%
Regional Management Corp. and
Subsidiaries
Selected Financial
Data
(Unaudited)
(dollars in thousands, except
per share amounts)
Net Finance
Receivables
2Q 24
1Q 24
QoQ $ Inc (Dec)
QoQ % Inc (Dec)
2Q 23
YoY $ Inc (Dec)
YoY % Inc (Dec)
Large loans
$
1,266,032
$
1,250,647
$
15,385
1.2
%
$
1,238,031
$
28,001
2.3
%
Small loans
505,640
490,830
14,810
3.0
%
444,590
61,050
13.7
%
Retail loans
2,071
2,809
(738
)
(26.3
)%
6,316
(4,245
)
(67.2
)%
Total net finance receivables
$
1,773,743
$
1,744,286
$
29,457
1.7
%
$
1,688,937
$
84,806
5.0
%
Number of branches at period end
343
343
—
—
347
(4
)
(1.2
)%
Net finance receivables per branch
$
5,171
$
5,085
$
86
1.7
%
$
4,867
$
304
6.2
%
Averages and Yields
2Q 24
1Q 24
2Q 23
Average Net Finance
Receivables
Average Yield (1)
Average Net Finance
Receivables
Average Yield (1)
Average Net Finance
Receivables
Average Yield (1)
Large loans
$
1,255,729
26.1
%
$
1,263,491
26.0
%
$
1,223,339
26.0
%
Small loans
490,615
37.3
%
491,911
37.8
%
443,601
34.5
%
Retail loans
2,433
16.6
%
3,341
15.8
%
7,191
16.6
%
Total interest and fee yield
$
1,748,777
29.3
%
$
1,758,743
29.3
%
$
1,674,131
28.2
%
Total revenue yield
$
1,748,777
32.7
%
$
1,758,743
32.8
%
$
1,674,131
31.9
%
(1) Annualized interest and fee income as a percentage of
average net finance receivables.
Components of Increase in
Interest and Fee Income
2Q 24 Compared to 2Q
23
Increase (Decrease)
Volume
Rate
Volume & Rate
Total
Large loans
$
2,105
$
380
$
10
$
2,495
Small loans
4,057
3,129
331
7,517
Retail loans
(197
)
1
(1
)
(197
)
Product mix
(700
)
846
(146
)
—
Total increase in interest and fee
income
$
5,265
$
4,356
$
194
$
9,815
Loans Originated (1)
2Q 24
1Q 24
QoQ $ Inc (Dec)
QoQ % Inc (Dec)
2Q 23
YoY $ Inc (Dec)
YoY % Inc (Dec)
Large loans
$
254,779
$
185,074
$
69,705
37.7
%
$
249,514
$
5,265
2.1
%
Small loans
171,282
141,281
30,001
21.2
%
149,460
21,822
14.6
%
Total loans originated
$
426,061
$
326,355
$
99,706
30.6
%
$
398,974
$
27,087
6.8
%
(1) Represents the principal balance of loan originations and
refinancings.
Other Key Metrics
2Q 24
1Q 24
2Q 23
Net credit losses
$
55,502
$
46,723
$
54,951
Percentage of average net finance
receivables (annualized)
12.7
%
10.6
%
13.1
%
Provision for credit losses
$
53,802
$
46,423
$
52,551
Percentage of average net finance
receivables (annualized)
12.3
%
10.6
%
12.6
%
Percentage of total revenue
37.6
%
32.2
%
39.4
%
General and administrative expenses
$
60,136
$
60,448
$
56,896
Percentage of average net finance
receivables (annualized)
13.8
%
13.7
%
13.6
%
Percentage of total revenue
42.0
%
41.9
%
42.6
%
Same store results (1):
Net finance receivables at period-end
$
1,759,075
$
1,733,237
$
1,636,131
Net finance receivable growth rate
4.5
%
3.4
%
7.2
%
Number of branches in calculation
338
340
329
(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
2Q 24
1Q 24
2Q 23
Allowance for credit losses
$
185,400
10.5
%
$
187,100
10.7
%
$
181,400
10.7
%
Current
1,497,219
84.4
%
1,489,510
85.4
%
1,433,787
84.9
%
1 to 29 days past due
153,788
8.7
%
130,578
7.5
%
138,810
8.2
%
Delinquent accounts:
30 to 59 days
34,924
1.9
%
30,020
1.7
%
33,676
2.0
%
60 to 89 days
27,689
1.6
%
25,409
1.5
%
24,931
1.5
%
90 to 119 days
21,607
1.2
%
23,460
1.3
%
20,041
1.1
%
120 to 149 days
19,333
1.1
%
22,163
1.3
%
18,087
1.1
%
150 to 179 days
19,183
1.1
%
23,146
1.3
%
19,605
1.2
%
Total contractual delinquency
$
122,736
6.9
%
$
124,198
7.1
%
$
116,340
6.9
%
Total net finance receivables
$
1,773,743
100.0
%
$
1,744,286
100.0
%
$
1,688,937
100.0
%
1 day and over past due
$
276,524
15.6
%
$
254,776
14.6
%
$
255,150
15.1
%
Contractual Delinquency by
Product
2Q 24
1Q 24
2Q 23
Large loans
$
76,432
6.0
%
$
78,055
6.2
%
$
74,637
6.0
%
Small loans
46,015
9.1
%
45,804
9.3
%
40,894
9.2
%
Retail loans
289
14.0
%
339
12.1
%
809
12.8
%
Total contractual delinquency
$
122,736
6.9
%
$
124,198
7.1
%
$
116,340
6.9
%
Income Statement Quarterly
Trend
2Q 23
3Q 23
4Q 23
1Q 24
2Q 24
QoQ $ B(W)
YoY $ B(W)
Revenue
Interest and fee income
$
118,083
$
125,018
$
126,190
$
128,818
$
127,898
$
(920
)
$
9,815
Insurance income, net
11,203
11,382
10,985
10,974
10,507
(467
)
(696
)
Other income
4,198
4,478
4,484
4,516
4,620
104
422
Total revenue
133,484
140,878
141,659
144,308
143,025
(1,283
)
9,541
Expenses
Provision for credit losses
52,551
50,930
68,885
46,423
53,802
(7,379
)
(1,251
)
Personnel
36,419
39,832
42,024
37,820
37,097
723
(678
)
Occupancy
6,158
6,315
6,268
6,375
6,149
226
9
Marketing
3,844
4,077
4,474
4,315
4,836
(521
)
(992
)
Other
10,475
11,880
12,030
11,938
12,054
(116
)
(1,579
)
Total general and administrative
56,896
62,104
64,796
60,448
60,136
312
(3,240
)
Interest expense
16,224
16,947
17,510
17,504
17,865
(361
)
(1,641
)
Income before income taxes
7,813
10,897
(9,532
)
19,933
11,222
(8,711
)
3,409
Income taxes
1,790
2,077
(1,958
)
4,728
2,777
1,951
(987
)
Net income (loss)
$
6,023
$
8,820
$
(7,574
)
$
15,205
$
8,445
$
(6,760
)
$
2,422
Net income (loss) per common share:
Basic
$
0.64
$
0.94
$
(0.80
)
$
1.59
$
0.88
$
(0.71
)
$
0.24
Diluted
$
0.63
$
0.91
$
(0.80
)
$
1.56
$
0.86
$
(0.70
)
$
0.23
Weighted-average shares outstanding:
Basic
9,399
9,429
9,437
9,569
9,613
(44
)
(214
)
Diluted
9,566
9,650
9,437
9,746
9,863
(117
)
(297
)
Balance Sheet Quarterly
Trend
2Q 23
3Q 23
4Q 23
1Q 24
2Q 24
QoQ $ Inc (Dec)
YoY $ Inc (Dec)
Total assets
$
1,723,616
$
1,765,340
$
1,794,527
$
1,756,748
$
1,789,052
$
32,304
$
65,436
Net finance receivables
$
1,688,937
$
1,751,009
$
1,771,410
$
1,744,286
$
1,773,743
$
29,457
$
84,806
Allowance for credit losses
$
181,400
$
184,900
$
187,400
$
187,100
$
185,400
$
(1,700
)
$
4,000
Debt
$
1,344,855
$
1,372,748
$
1,399,814
$
1,358,795
$
1,378,449
$
19,654
$
33,594
Other Key Metrics Quarterly
Trend
2Q 23
3Q 23
4Q 23
1Q 24
2Q 24
QoQ Inc (Dec)
YoY Inc (Dec)
Interest and fee yield (annualized)
28.2
%
29.0
%
28.8
%
29.3
%
29.3
%
—
1.1
%
Efficiency ratio (1)
42.6
%
44.1
%
45.7
%
41.9
%
42.0
%
0.1
%
(0.6
)%
Operating expense ratio (2)
13.6
%
14.4
%
14.8
%
13.7
%
13.8
%
0.1
%
0.2
%
30+ contractual delinquency
6.9
%
7.3
%
6.9
%
7.1
%
6.9
%
(0.2
)%
—
Net credit loss ratio (3)
13.1
%
11.0
%
15.1
%
10.6
%
12.7
%
2.1
%
(0.4
)%
Book value per share
$
32.71
$
33.61
$
33.02
$
34.10
$
33.96
$
(0.14
)
$
1.25
(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 Yield (1)
Average Net Finance
Receivables
Average Yield (1)
Large loans
$
1,259,611
26.1
%
$
1,219,464
26.0
%
Small loans
491,262
37.6
%
455,659
34.8
%
Retail loans
2,887
16.1
%
8,068
17.7
%
Total interest and fee yield
$
1,753,760
29.3
%
$
1,683,191
28.3
%
Total revenue yield
$
1,753,760
32.8
%
$
1,683,191
31.9
%
Components of Increase in
Interest and Fee Income
YTD 24 Compared to YTD
23
Increase (Decrease)
Volume
Rate
Volume & Rate
Total
Large loans
$
5,219
$
407
$
13
$
5,639
Small loans
6,193
6,378
498
13,069
Retail loans
(459
)
(64
)
41
(482
)
Product mix
(954
)
1,175
(221
)
—
Total increase in interest and fee
income
$
9,999
$
7,896
$
331
$
18,226
Loans Originated (1)
YTD 24
YTD 23
YTD $ Inc (Dec)
YTD % Inc (Dec)
Large loans
$
439,853
$
443,085
$
(3,232
)
(0.7
)%
Small loans
312,563
258,944
53,619
20.7
%
Retail loans
—
146
(146
)
(100.0
)%
Total loans originated
$
752,416
$
702,175
$
50,241
7.2
%
(1) Represents the principal balance of loan originations and
refinancings.
Other Key Metrics
YTD 24
YTD 23
Net credit losses
$
102,225
$
97,619
Percentage of average net finance
receivables (annualized)
11.7
%
11.6
%
Provision for credit losses
$
100,225
$
100,219
Percentage of average net finance
receivables (annualized)
11.4
%
11.9
%
Percentage of total revenue
34.9
%
37.3
%
General and administrative expenses
$
120,584
$
116,219
Percentage of average net finance
receivables (annualized)
13.8
%
13.8
%
Percentage of total revenue
42.0
%
43.2
%
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.
2Q 24
Debt
$
1,378,449
Total stockholders' equity
344,903
Less: Intangible assets
19,264
Tangible equity (non-GAAP)
$
325,639
Funded debt-to-equity ratio
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/20240731871271/en/
Investor Relations Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
Regional Management (NYSE:RM)
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Regional Management (NYSE:RM)
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