- Net income of $9.9 million and diluted
earnings per share of $0.98 -
- Record revenue and ending net receivables
driven by $73 million of sequential portfolio growth -
- Net credit loss rate of 10.8% was 430 basis
points better than the prior-year period -
- Continued expense discipline with an
operating expense ratio of 14.0%, an 80 basis point improvement
year-over-year -
Regional Management Corp. (NYSE: RM), a diversified consumer
finance company, today announced results for the fourth quarter
ended December 31, 2024.
“We are very pleased with how our team and company performed in
the fourth quarter,” said Robert W. Beck, President and Chief
Executive Officer of Regional Management Corp. “We generated strong
bottom-line results of $9.9 million of net income and 98 cents of
diluted earnings per share, a sharp improvement from the prior-year
period. We increased our investment in growth and grew our
portfolio by $73 million sequentially, or 16.0% on an annualized
basis, to nearly $1.9 billion, an all-time high for our company.
The portfolio generated record quarterly revenue of $155 million,
up 9.3% year-over-year. Our fourth quarter total revenue yield was
33.4%, 110 basis points higher than the prior-year period from
increased pricing, a mix shift to higher-margin loans, and
improving credit performance.”
“The loans in our front book continue to perform in line with
our expectations and are delivering at lower loss levels than our
stressed back book vintages,” added Mr. Beck. “Our 30+ day
delinquency and net credit loss rates improved 10 basis points and
110 basis points, respectively, compared to the prior-year period
after adjusting for the impacts of the fourth quarter 2023 special
loan sale. We have also held G&A expenses in check while
investing in growth, allowing us to leverage our improved scale to
increase our returns. Our fourth quarter operating expense ratio
was 14.0%, a 30 basis point improvement from the prior-year period
after adjusting for the fourth quarter 2023 restructuring.”
“The fourth quarter capped a strong 2024 in which we improved
our results from the prior year on nearly all lines,” continued Mr.
Beck. “Looking ahead to 2025, we expect to accelerate our growth
due to our confidence in our credit performance, improving consumer
health, and strengthening macroeconomic conditions. Assuming no
change in our expectations for the economy, we are committed to
both a minimum of 10% portfolio growth and a meaningful improvement
to our net income results in 2025. Over the long-term, we expect
that our returns will continue to normalize with the benefits of a
stable macroeconomic environment, further scale through disciplined
portfolio growth, a well-balanced product mix, and prudent expense
management.”
Fourth Quarter 2024 Highlights
- Net income for the fourth quarter of 2024 was $9.9 million and
diluted earnings per share was $0.98.
- Net income reflects the impact of $72.8 million of sequential
portfolio growth in the quarter, which required a $7.7 million
provision for credit losses, or $6.0 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.
- Record net finance receivables as of December 31, 2024 of $1.9
billion, an increase of $121.1 million, or 6.8%, from the
prior-year period, were driven by the strong execution of our
barbell strategy which balances our higher-quality, auto-secured
products with our higher-margin small loan portfolio.
- Large loan net finance receivables of $1.3 billion increased
$62.6 million, or 4.9%, from the prior-year period and represented
70.6% of the total loan portfolio, compared to 71.9% in the
prior-year period.
- Small loan net finance receivables of $554.7 million increased
$61.2 million, or 12.4%, from the prior-year period and represented
29.3% of the total loan portfolio, compared to 27.9% in the
prior-year period.
- Our auto-secured loan portfolio increased by $52.2 million, or
33.8%, from the prior-year period to $206.6 million. The
auto-secured loan portfolio represented 10.9% of the total loan
portfolio, compared to 8.7% in the prior-year period.
- Net finance receivables with annual percentage rates (APRs)
above 36% increased to 18.5% of the portfolio from 15.7% in the
prior-year period, driven by the increase in the higher-margin
small loan portfolio.
- Customer accounts increased by 6.9% from the prior-year
period.
- Record total revenue for the fourth quarter of 2024 of $154.8
million, an increase of $13.2 million, or 9.3%, from the prior-year
period, primarily due to growth in average net finance receivables
and 100 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 80 basis points,
while the interest and fee yield of the small loan portfolio
increased by 110 basis points.
- Total revenue yield increased 80 basis points sequentially and
110 basis points year-over-year.
- Provision for credit losses for the fourth quarter of 2024 was
$57.6 million, a decrease of $11.3 million, or 16.3%, from the
prior-year period, driven by maintaining a tight credit box.
- Annualized net credit losses as a percentage of average net
finance receivables for the fourth quarter of 2024 were 10.8%, a
430 basis point improvement compared to 15.1% in the prior-year
period. The fourth quarter 2024 net credit loss rate is inclusive
of an estimated 20 basis point increase from year-over-year growth
of the higher-rate small loan portfolio. The fourth quarter 2023
net credit loss rate is inclusive of a 320 basis point impact from
$13.9 million of accelerated net credit losses from the sale of
certain non-performing loans.
- The allowance for credit losses was $199.5 million as of
December 31, 2024, or 10.5% of net finance receivables, a 10 basis
point improvement sequentially from 10.6%. The provision for credit
losses for the fourth quarter of 2024 included an allowance for
credit losses increase of $7.4 million, primarily related to
portfolio growth occurring during the fourth quarter of 2024.
- As of December 31, 2024, 30+ day contractual delinquencies
totaled $145.8 million, or 7.7% of net finance receivables, an 80
basis point increase sequentially and from the prior-year period.
The fourth 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, while the prior-year period
delinquency rate is inclusive of a 90 basis point benefit from the
sale of certain non-performing loans.
- The delinquency rate of the large loan portfolio was 6.6% as of
the end of the fourth quarter of 2024, a 30 basis point increase
from the prior-year period. The prior-year period delinquency rate
is inclusive of a 60 basis point benefit from the sale of certain
non-performing loans.
- The delinquency rate of the small loan portfolio was 10.4% as
of the end of the fourth quarter of 2024, a 190 basis point
increase from the prior-year period. The fourth quarter delinquency
rate is inclusive of an estimated 130 basis point impact from
year-over-year growth of the higher-rate small loan portfolio,
while the prior-year period delinquency rate is inclusive of a 150
basis point benefit from the sale of certain non-performing
loans.
- General and administrative expenses for the fourth quarter of
2024 were $64.6 million, a decrease of $0.2 million, or 0.2%, from
the prior-year period. The operating expense ratio (annualized
general and administrative expenses as a percentage of average net
finance receivables) for the fourth quarter of 2024 was 14.0%, an
80 basis point improvement from 14.8% in the prior-year period. The
prior-year period included $2.0 million of restructuring expenses,
which increased the prior-year period operating expense ratio by 50
basis points.
- In the fourth quarter of 2024, the company repurchased 104,542
shares of its common stock at a weighted-average price of $33.83
per share under the company's $30 million stock repurchase
program.
First Quarter 2025 Dividend
The company’s Board of Directors has declared a dividend of
$0.30 per common share for the first quarter of 2025. The dividend
will be paid on March 13, 2025 to shareholders of record as of the
close of business on February 20, 2025. 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 December 31, 2024, the company had net finance receivables
of $1.9 billion and debt of $1.5 billion. The debt consisted
of:
- $219.3 million on the company’s $355 million senior revolving
credit facility,
- $96.6 million on the company’s aggregate $425 million revolving
warehouse credit facilities, and
- $1.2 billion through the company’s asset-backed
securitizations.
As of December 31, 2024, the company’s unused capacity to fund
future growth on its revolving credit facilities (subject to the
borrowing base) was $466 million, or 59.8%, and the company had
available liquidity of $136.9 million, including unrestricted cash
on hand and immediate availability to draw down cash from its
revolving credit facilities. As of December 31, 2024, the company’s
fixed-rate debt as a percentage of total debt was 79%, with a
weighted-average coupon of 4.1% and a weighted-average revolving
duration of 1.3 years.
In November, the company closed a $250 million asset-backed
securitization transaction at a weighted-average coupon of 5.34%,
an 85 basis point improvement over the company’s second quarter
2024 securitization transaction. The Class A notes of the
securitization received a top rating of “AAA” from Standard &
Poor’s and Morningstar DBRS, and the company experienced
significant demand across all classes of notes, including from new
investors, again demonstrating the strength of its ABS
platform.
The company had a funded debt-to-equity ratio of 4.1 to 1.0 and
a stockholders’ equity ratio of 18.7%, each as of December 31,
2024. On a non-GAAP basis, the company had a funded
debt-to-tangible equity ratio of 4.4 to 1.0, as of December 31,
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)
4Q 24
4Q 23
$
%
FY 24
FY 23
$
%
Revenue
Interest and fee income
$
138,246
$
126,190
$
12,056
9.6
%
$
528,894
$
489,698
$
39,196
8.0
%
Insurance income, net
11,792
10,985
807
7.3
%
40,695
44,529
(3,834
)
(8.6
)%
Other income
4,794
4,484
310
6.9
%
18,914
17,172
1,742
10.1
%
Total revenue
154,832
141,659
13,173
9.3
%
588,503
551,399
37,104
6.7
%
Expenses
Provision for credit losses
57,626
68,885
11,259
16.3
%
212,200
220,034
7,834
3.6
%
Personnel
40,549
42,024
1,475
3.5
%
153,789
156,872
3,083
2.0
%
Occupancy
6,748
6,268
(480
)
(7.7
)%
25,823
25,029
(794
)
(3.2
)%
Marketing
4,777
4,474
(303
)
(6.8
)%
19,006
15,774
(3,232
)
(20.5
)%
Other
12,572
12,030
(542
)
(4.5
)%
49,080
45,444
(3,636
)
(8.0
)%
Total general and administrative
64,646
64,796
150
0.2
%
247,698
243,119
(4,579
)
(1.9
)%
Interest expense
19,805
17,510
(2,295
)
(13.1
)%
74,530
67,463
(7,067
)
(10.5
)%
Income (loss) before income taxes
12,755
(9,532
)
22,287
233.8
%
54,075
20,783
33,292
160.2
%
Income taxes
2,841
(1,958
)
(4,799
)
(245.1
)%
12,848
4,825
(8,023
)
(166.3
)%
Net income (loss)
$
9,914
$
(7,574
)
$
17,488
230.9
%
$
41,227
$
15,958
$
25,269
158.3
%
Net income (loss) per common share:
Basic
$
1.02
$
(0.80
)
$
1.82
227.5
%
$
4.28
$
1.70
$
2.58
151.8
%
Diluted
$
0.98
$
(0.80
)
$
1.78
222.5
%
$
4.14
$
1.66
$
2.48
149.4
%
Weighted-average common shares
outstanding:
Basic
9,691
9,437
(254
)
(2.7
)%
9,640
9,398
(242
)
(2.6
)%
Diluted
10,128
9,437
(691
)
(7.3
)%
9,957
9,593
(364
)
(3.8
)%
Return on average assets (annualized)
2.1
%
(1.7
)%
2.3
%
0.9
%
Return on average equity (annualized)
11.1
%
(9.3
)%
12.0
%
5.0
%
Regional Management Corp. and
Subsidiaries
Consolidated Balance
Sheets
(Unaudited)
(dollars in thousands, except
par value amounts)
Increase (Decrease)
4Q 24
4Q 23
$
%
Assets
Cash
$
3,951
$
4,509
$
(558
)
(12.4
)%
Net finance receivables
1,892,535
1,771,410
121,125
6.8
%
Unearned insurance premiums
(48,068
)
(47,892
)
(176
)
(0.4
)%
Allowance for credit losses
(199,500
)
(187,400
)
(12,100
)
(6.5
)%
Net finance receivables, less unearned
insurance premiums and allowance for credit losses
1,644,967
1,536,118
108,849
7.1
%
Restricted cash
131,684
124,164
7,520
6.1
%
Lease assets
38,442
34,303
4,139
12.1
%
Intangible assets
24,524
15,846
8,678
54.8
%
Restricted available-for-sale
investments
21,712
22,740
(1,028
)
(4.5
)%
Property and equipment
13,677
13,787
(110
)
(0.8
)%
Deferred tax assets, net
9,286
13,641
(4,355
)
(31.9
)%
Other assets
20,866
29,419
(8,553
)
(29.1
)%
Total assets
$
1,909,109
$
1,794,527
$
114,582
6.4
%
Liabilities and Stockholders’
Equity
Liabilities:
Debt
$
1,478,336
$
1,399,814
$
78,522
5.6
%
Unamortized debt issuance costs
(6,338
)
(4,578
)
(1,760
)
(38.4
)%
Net debt
1,471,998
1,395,236
76,762
5.5
%
Lease liabilities
40,579
36,576
4,003
10.9
%
Accounts payable and accrued expenses
39,454
40,442
(988
)
(2.4
)%
Total liabilities
1,552,031
1,472,254
79,777
5.4
%
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, 14,921 shares issued and 10,010 shares
outstanding at December 31, 2024 and 14,566 shares issued and 9,759
shares outstanding at December 31, 2023)
1,492
1,457
35
2.4
%
Additional paid-in capital
130,725
121,752
8,973
7.4
%
Retained earnings
378,482
349,579
28,903
8.3
%
Accumulated other comprehensive income
(loss)
62
(372
)
434
116.7
%
Treasury stock (4,911 shares at December
31, 2024 and 4,807 shares at December 31, 2023)
(153,683
)
(150,143
)
(3,540
)
(2.4
)%
Total stockholders’ equity
357,078
322,273
34,805
10.8
%
Total liabilities and stockholders’
equity
$
1,909,109
$
1,794,527
$
114,582
6.4
%
Regional Management Corp. and
Subsidiaries
Selected Financial
Data
(Unaudited)
(dollars in thousands, except
per share amounts)
Net Finance
Receivables
4Q 24
3Q 24
QoQ $ Inc (Dec)
QoQ % Inc (Dec)
4Q 23
YoY $ Inc (Dec)
YoY % Inc (Dec)
Large loans
$
1,336,780
$
1,293,410
$
43,370
3.4
%
$
1,274,137
$
62,643
4.9
%
Small loans
554,686
524,826
29,860
5.7
%
493,473
61,213
12.4
%
Retail loans
1,069
1,520
(451
)
(29.7
)%
3,800
(2,731
)
(71.9
)%
Total net finance receivables
$
1,892,535
$
1,819,756
$
72,779
4.0
%
$
1,771,410
$
121,125
6.8
%
Number of branches at period end
344
340
4
1.2
%
346
(2
)
(0.6
)%
Net finance receivables per branch
$
5,502
$
5,352
$
150
2.8
%
$
5,120
$
382
7.5
%
Averages and Yields
4Q 24
3Q 24
4Q 23
Average Net Finance
Receivables
Average Yield (1)
Average Net Finance
Receivables
Average Yield (1)
Average Net Finance
Receivables
Average Yield (1)
Large loans
$
1,315,375
26.8
%
$
1,279,720
26.7
%
$
1,273,268
26.0
%
Small loans
536,163
37.4
%
511,294
37.8
%
477,615
36.3
%
Retail loans
1,300
15.4
%
1,795
16.3
%
4,356
16.3
%
Total interest and fee yield
$
1,852,838
29.8
%
$
1,792,809
29.9
%
$
1,755,239
28.8
%
Total revenue yield
$
1,852,838
33.4
%
$
1,792,809
32.6
%
$
1,755,239
32.3
%
(1) Annualized interest and fee income as
a percentage of average net finance receivables.
Components of Increase in
Interest and Fee Income
4Q 24 Compared to 4Q
23
Increase (Decrease)
Volume
Rate
Volume & Rate
Total
Large loans
$
2,733
$
2,599
$
86
$
5,418
Small loans
5,317
1,290
158
6,765
Retail loans
(124
)
(9
)
6
(127
)
Product mix
(909
)
894
15
—
Total increase in interest and fee
income
$
7,017
$
4,774
$
265
$
12,056
Loans Originated (1)
4Q 24
3Q 24
QoQ $ Inc (Dec)
QoQ % Inc (Dec)
4Q 23
YoY $ Inc (Dec)
YoY % Inc (Dec)
Large loans
$
281,632
$
251,563
$
30,069
12.0
%
$
233,415
$
48,217
20.7
%
Small loans
194,268
174,632
19,636
11.2
%
174,394
19,874
11.4
%
Total loans originated
$
475,900
$
426,195
$
49,705
11.7
%
$
407,809
$
68,091
16.7
%
(1) Represents the principal balance of
loan originations and refinancings.
Other Key Metrics
4Q 24
3Q 24
4Q 23
Net credit losses
$
50,226
$
47,649
$
66,385
Percentage of average net finance
receivables (annualized)
10.8
%
10.6
%
15.1
%
Provision for credit losses
$
57,626
$
54,349
$
68,885
Percentage of average net finance
receivables (annualized)
12.4
%
12.1
%
15.7
%
Percentage of total revenue
37.2
%
37.1
%
48.6
%
General and administrative expenses
$
64,646
$
62,468
$
64,796
Percentage of average net finance
receivables (annualized)
14.0
%
13.9
%
14.8
%
Percentage of total revenue
41.8
%
42.7
%
45.7
%
Same store results (1):
Net finance receivables at period-end
$
1,880,251
$
1,815,187
$
1,718,367
Net finance receivable growth rate
6.1
%
3.7
%
1.5
%
Number of branches in calculation
337
337
333
(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
4Q 24
3Q 24
4Q 23
Allowance for credit losses
$
199,500
10.5
%
$
192,100
10.6
%
$
187,400
10.6
%
Current
1,590,381
84.0
%
1,529,171
84.1
%
1,493,341
84.3
%
1 to 29 days past due
156,312
8.3
%
164,568
9.0
%
155,196
8.8
%
Delinquent accounts:
30 to 59 days
36,948
1.9
%
35,300
1.9
%
34,756
1.9
%
60 to 89 days
35,242
1.9
%
27,704
1.5
%
31,212
1.8
%
90 to 119 days
28,085
1.5
%
23,964
1.4
%
27,107
1.5
%
120 to 149 days
23,987
1.3
%
22,544
1.2
%
15,317
0.9
%
150 to 179 days
21,580
1.1
%
16,505
0.9
%
14,481
0.8
%
Total contractual delinquency
$
145,842
7.7
%
$
126,017
6.9
%
$
122,873
6.9
%
Total net finance receivables
$
1,892,535
100.0
%
$
1,819,756
100.0
%
$
1,771,410
100.0
%
1 day and over past due
$
302,154
16.0
%
$
290,585
15.9
%
$
278,069
15.7
%
Contractual Delinquency by
Product
4Q 24
3Q 24
4Q 23
Large loans
$
88,054
6.6
%
$
76,435
5.9
%
$
80,136
6.3
%
Small loans
57,595
10.4
%
49,351
9.4
%
42,151
8.5
%
Retail loans
193
18.1
%
231
15.2
%
586
15.4
%
Total contractual delinquency
$
145,842
7.7
%
$
126,017
6.9
%
$
122,873
6.9
%
Income Statement Quarterly
Trend
4Q 23
1Q 24
2Q 24
3Q 24
4Q 24
QoQ $ B(W)
YoY $ B(W)
Revenue
Interest and fee income
$
126,190
$
128,818
$
127,898
$
133,932
$
138,246
$
4,314
$
12,056
Insurance income, net
10,985
10,974
10,507
7,422
11,792
4,370
807
Other income
4,484
4,516
4,620
4,984
4,794
(190
)
310
Total revenue
141,659
144,308
143,025
146,338
154,832
8,494
13,173
Expenses
Provision for credit losses
68,885
46,423
53,802
54,349
57,626
(3,277
)
11,259
Personnel
42,024
37,820
37,097
38,323
40,549
(2,226
)
1,475
Occupancy
6,268
6,375
6,149
6,551
6,748
(197
)
(480
)
Marketing
4,474
4,315
4,836
5,078
4,777
301
(303
)
Other
12,030
11,938
12,054
12,516
12,572
(56
)
(542
)
Total general and administrative
64,796
60,448
60,136
62,468
64,646
(2,178
)
150
Interest expense
17,510
17,504
17,865
19,356
19,805
(449
)
(2,295
)
Income (loss) before income taxes
(9,532
)
19,933
11,222
10,165
12,755
2,590
22,287
Income taxes
(1,958
)
4,728
2,777
2,502
2,841
(339
)
(4,799
)
Net income (loss)
$
(7,574
)
$
15,205
$
8,445
$
7,663
$
9,914
$
2,251
$
17,488
Net income (loss) per common share:
Basic
$
(0.80
)
$
1.59
$
0.88
$
0.79
$
1.02
$
0.23
$
1.82
Diluted
$
(0.80
)
$
1.56
$
0.86
$
0.76
$
0.98
$
0.22
$
1.78
Weighted-average shares outstanding:
Basic
9,437
9,569
9,613
9,683
9,691
(8
)
(254
)
Diluted
9,437
9,746
9,863
10,090
10,128
(38
)
(691
)
Balance Sheet & Other Key
Metrics Quarterly Trends
4Q 23
1Q 24
2Q 24
3Q 24
4Q 24
QoQ $ Inc (Dec)
YoY $ Inc (Dec)
Total assets
$
1,794,527
$
1,756,748
$
1,789,052
$
1,821,831
$
1,909,109
$
87,278
$
114,582
Net finance receivables
$
1,771,410
$
1,744,286
$
1,773,743
$
1,819,756
$
1,892,535
$
72,779
$
121,125
Allowance for credit losses
$
187,400
$
187,100
$
185,400
$
192,100
$
199,500
$
7,400
$
12,100
Debt
$
1,399,814
$
1,358,795
$
1,378,449
$
1,395,892
$
1,478,336
$
82,444
$
78,522
Interest and fee yield (annualized)
28.8
%
29.3
%
29.3
%
29.9
%
29.8
%
(0.1
)%
1.0
%
Efficiency ratio (1)
45.7
%
41.9
%
42.0
%
42.7
%
41.8
%
(0.9
)%
(3.9
)%
Operating expense ratio (2)
14.8
%
13.7
%
13.8
%
13.9
%
14.0
%
0.1
%
(0.8
)%
30+ contractual delinquency
6.9
%
7.1
%
6.9
%
6.9
%
7.7
%
0.8
%
0.8
%
Net credit loss ratio (3)
15.1
%
10.6
%
12.7
%
10.6
%
10.8
%
0.2
%
(4.3
)%
Book value per share
$
33.02
$
34.10
$
33.96
$
34.72
$
35.67
$
0.95
$
2.65
(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
FY 24
FY 23
Average Net Finance
Receivables
Average Yield
Average Net Finance
Receivables
Average Yield
Large loans
$
1,278,683
26.4
%
$
1,242,529
26.1
%
Small loans
507,584
37.6
%
462,116
35.6
%
Retail loans
2,214
16.1
%
6,522
17.3
%
Total interest and fee yield
$
1,788,481
29.6
%
$
1,711,167
28.6
%
Total revenue yield
$
1,788,481
32.9
%
$
1,711,167
32.2
%
Components of Increase in
Interest and Fee Income
FY 24 Compared to FY
23
Increase (Decrease)
Volume
Rate
Volume & Rate
Total
Large loans
$
9,424
$
4,262
$
124
$
13,810
Small loans
16,202
9,065
892
26,159
Retail loans
(746
)
(80
)
53
(773
)
Product mix
(2,754
)
3,086
(332
)
—
Total increase in interest and fee
income
$
22,126
$
16,333
$
737
$
39,196
Loans Originated (1)
FY 24
FY 23
FY $ Inc (Dec)
FY % Inc (Dec)
Large loans
$
973,048
$
928,499
$
44,549
4.8
%
Small loans
681,463
606,412
75,051
12.4
%
Retail loans
—
146
(146
)
(100.0
)%
Total loans originated
$
1,654,511
$
1,535,057
$
119,454
7.8
%
(1) Represents the principal balance of
loan originations and refinancings.
Other Key Metrics
FY 24
FY 23
Net credit losses
$
200,100
$
211,434
Percentage of average net finance
receivables
11.2
%
12.4
%
Provision for credit losses
$
212,200
$
220,034
Percentage of average net finance
receivables
11.9
%
12.9
%
Percentage of total revenue
36.1
%
39.9
%
General and administrative expenses
$
247,698
$
243,119
Percentage of average net finance
receivables
13.8
%
14.2
%
Percentage of total revenue
42.1
%
44.1
%
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.
4Q 24
Debt
$
1,478,336
Total stockholders' equity
357,078
Less: Intangible assets
24,524
Tangible equity (non-GAAP)
$
332,554
Funded debt-to-equity ratio
4.1
x
Funded debt-to-tangible equity ratio
(non-GAAP)
4.4
x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250205247580/en/
Investor Relations Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
Regional Management (NYSE:RM)
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