- Net income of $6.1 million; diluted earnings
per share of $0.52 -
- Finance receivable growth of 12.5% from the
prior year -
- 30+ day delinquencies as a percentage of
finance receivables of 6.5% -
Regional Management Corp. (NYSE:RM), a diversified consumer
finance company, today announced results for the second quarter
ended June 30, 2017.
Second Quarter 2017 Highlights
- Net income for the second quarter of
2017 was $6.1 million, an increase of 3.8% from the prior-year
period. Net income for the second quarter of 2017 included $0.3
million of after-tax Chief Operating Officer transition costs.
Diluted earnings per share for the second quarter of 2017 was
$0.52, based on a diluted share count of 11.7 million.
- Total finance receivables as of June
30, 2017 were $726.8 million, an increase of 12.5%, or $81.0
million, from the prior year, and up 4.6%, or $31.8 million,
sequentially.
- Ninth consecutive quarter that total
finance receivables have increased at least 10% over the prior-year
period.
- Large loan finance receivables of $267.9
million increased $73.1 million, or 37.5%, from the prior-year
period and now represent 36.9% of the total loan portfolio. Small
loan finance receivables as of June 30, 2017 were $348.7 million,
an increase of 9.0% over the prior-year period.
- Total revenue for the second quarter of
2017 was $65.3 million, an $8.0 million, or 14.0%, increase from
the prior-year period.
- Interest and fee income increase of 13.7%,
driven by a 12.5% increase in receivables compared to the
prior-year period.
- Overall yield increase of 20 basis points
on a year-over-year basis.
- Provision for credit losses for the
second quarter of 2017 was $18.6 million, an increase of $5.2
million compared to the prior-year period. The provision for credit
losses included $1.0 million related to a temporary shift of
insurance claims expense. This line shift had no impact on the
Company’s net income.
- Annualized net credit losses as a
percentage of finance receivables were 9.9% (inclusive of 0.9%
attributable to the shift in insurance claims expense noted above),
an increase from 8.6% in the prior-year period. Sequentially,
annualized net credit losses were down 100 basis points from 10.9%
in the first quarter of 2017.
- Total delinquencies as a percentage of
total finance receivables as of June 30, 2017 were 17.5%, an
improvement from 18.3% as of June 30, 2016, and an increase from
15.7% as of March 31, 2017.
- 30+ day contractual delinquencies were
6.5%, an improvement from 6.8% as of June 30, 2016 and flat
sequentially.
- The Company entered into a $125.0
million revolving warehouse credit facility, which is expandable to
$150.0 million, and also increased the committed line under its
senior revolving credit facility to $638.0 million from its
previous amount of $585.0 million.
“We were pleased with our second quarter performance, driven
once again by double-digit top-line and finance receivables growth
and further improving credit trends,” said Peter R. Knitzer,
President and Chief Executive Officer of Regional Management. “Our
ongoing focus on our core small and large loan categories led us to
generate a 14% year-over-year increase in interest and fee income.
In addition, we continued to concentrate on stabilizing credit, and
as a result, we managed to reduce our net credit losses a full 100
basis points from the first quarter and keep our 30+ day
delinquency level flat.”
“In addition to our strong results, in June we announced that we
had entered into a $125 million warehouse credit facility,
expandable to $150 million, and further increased our committed
line under our revolving credit facility to $638 million,” added
Mr. Knitzer. “Finally, we successfully converted our branches in
Oklahoma and South Carolina to our new operating platform, and we
remain on schedule to have all states converted to the new platform
by the end of 2017. Overall, we continue to make good progress with
our growth strategy and the buildout of our infrastructure in order
to deliver long-term shareholder value.”
Second Quarter 2017 Results
Finance receivables outstanding at June 30, 2017 were $726.8
million, a 12.5% increase from $645.7 million in the prior year.
Finance receivables increased primarily due to an increase in both
the core small and large loan portfolios and the addition of eight
net new branches.
For the second quarter ended June 30, 2017, the Company reported
total revenue of $65.3 million, a 14.0% increase from $57.3 million
in the prior-year period. Interest and fee income for the second
quarter of 2017 was $59.8 million, a 13.7% increase from $52.6
million in the prior-year period, primarily due to an increase in
the portfolios of both small and large loans compared to the
prior-year period. Insurance income, net for the second quarter of
2017 was $3.1 million, an increase of $0.5 million from the
prior-year period primarily due to a transition in insurance
carriers, causing some of the Company’s insurance claims to impact
net credit losses instead of insurance income. Other income for the
second quarter of 2017 was $2.5 million, a 15.5% increase from the
prior-year period and consistent with portfolio growth.
The provision for credit losses in the second quarter of 2017
was $18.6 million, compared to $13.4 million in the prior-year
period. The increase was primarily due to the $81.0 million
increase in finance receivables, the temporary shift of $1.0
million in insurance claims expense, and a $1.0 million build in
allowance for credit losses compared to a slight release in the
second quarter of 2016.
Net credit losses were $17.6 million in the second quarter of
2017, compared to $13.4 million in the prior-year period,
consistent with portfolio growth. Net credit losses for the second
quarter of 2017 included $1.6 million of losses attributable to a
temporary shift of certain insurance claims expense into net credit
losses during a transition in the Company’s insurance provider.
Annualized net credit losses as a percentage of average finance
receivables in the second quarter of 2017 were 9.9% (inclusive of
0.9% attributable to the shift in insurance claims expense noted
above), an increase from 8.6% in the prior-year period, but an
improvement from 10.9% in the first quarter of 2017.
General and administrative expenses for the second quarter of
2017 were $31.6 million, an increase of 7.1%, or $2.1 million, from
the prior-year period. General and administrative expenses for the
second quarters of 2017 and 2016 included $0.3 million and $0.6
million of loan system conversion costs, respectively.
Sequentially, general and administrative expenses increased $0.2
million, or 0.6%, from the first quarter of 2017 as increased
marketing and personnel costs were mostly offset by a decrease in
other expenses.
Net income for the second quarter of 2017 was $6.1 million, an
increase from $5.9 million in the prior-year period. Diluted
earnings per share for the second quarter of 2017 were $0.52, an
increase from $0.49 in the prior-year period.
First Half 2017 Results
For the six months ended June 30, 2017, the Company reported
total revenue of $131.2 million, a 15.0% increase from $114.0
million in the prior-year period. Interest and fee income for the
six months ended June 30, 2017 was $119.0 million, a 14.6% increase
from $103.9 million in the prior-year period, primarily due to an
increase in the portfolios of both small and large installment
loans compared to the prior-year period. Insurance income, net for
the six months ended June 30, 2017 was $6.9 million, a 24.4%
increase from the prior-year period, in part due to the temporary
shift of certain claims expense into provision for credit losses
during the Company’s transition to a new insurance provider. Other
income for the six months ended June 30, 2017 was $5.2 million, a
13.8% increase from the prior-year period.
The provision for credit losses for the six months ended June
30, 2017 was $37.7 million versus $27.2 million in the prior-year
period. Net credit losses for the six months ended June 30, 2017
were $37.0 million, which includes $2.6 million of losses
attributable to a temporary shift of certain insurance claims
expense into net credit losses during a transition in the Company’s
insurance provider, compared to $28.4 million in the prior-year
period. Annualized net credit losses as a percentage of average
finance receivables for the six months ended June 30, 2017 were
10.4% (inclusive of 0.7% attributable to the shift in insurance
claims expense noted above), an increase from 9.1% in the
prior-year period.
General and administrative expenses for the six months ended
June 30, 2017 were $63.1 million, an increase of $3.7 million, or
6.3%, from $59.4 million in the prior-year period. Included in the
six months 2017 and 2016 results were $0.8 million and $1.0 million
in loan system conversion costs, respectively.
Net income for the six months ended June 30, 2017 was $13.8
million, a 24.2% increase compared to net income of $11.1 million
in the prior-year period. The net income increase for the six
months ended June 30, 2017 was partially due to $1.5 million of tax
benefits from the exercise or vesting of share-based compensation
that occurred during the first half of 2017. Diluted earnings per
share for the six months ended June 30, 2017 was $1.17 compared to
$0.89 in the prior-year period.
2017 De Novo Outlook
As of June 30, 2017, the Company’s branch network consisted of
347 locations. Regional Management opened 3 net de novo branches in
the second quarter of 2017 and a total of 8 net de novo branches
for the first half of 2017. For the full year 2017, the Company
maintains its plan to open between 10 and 15 de novo branches.
Liquidity and Capital Resources
As of June 30, 2017, the Company had finance receivables of
$726.8 million and outstanding long-term debt of $497.0 million
(consisting of $446.6 million of long-term debt on its $638.0
million senior revolving credit facility, $24.0 million of
long-term debt on its $125.0 million revolving warehouse credit
facility, and $26.4 million of long-term debt on its $75.7 million
amortizing loan). During the second quarter of 2017, the Company
entered into a $125.0 million revolving warehouse credit facility,
which is expandable to $150.0 million and is secured by certain
large loan receivables. The warehouse credit facility has an
initial term of 18 months, to be followed by a 12-month
amortization period.
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) 590-2959
(toll-free) or (503) 343-6651 (direct), passcode 53608307. Please
dial the number 10 minutes prior to the scheduled start time.
*** A supplemental slide presentation will be made available
on Regional Management’s website prior to the earnings call at
www.RegionalManagement.com. ***
In addition, a live webcast of the conference call will also be
available on Regional Management’s website at
www.RegionalManagement.com.
A replay will be available following the end of the call through
Tuesday, August 8, 2017, by telephone at (855) 859-2056 (toll-free)
or (404) 537-3406 (direct), passcode 53608307. A webcast replay of
the call will be available at www.RegionalManagement.com for one year following
the call.
Forward-Looking Statements
This press release may contain various “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, which represent Regional Management Corp.’s
expectations or beliefs concerning future events. 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 are
about matters that are inherently subject to risks and
uncertainties, many of which are outside of the control of Regional
Management. Factors that could cause actual results or performance
to differ from the expectations expressed or implied in such
forward-looking statements include, but are not limited to, the
following: changes in general economic conditions, including levels
of unemployment and bankruptcies; risks associated with Regional
Management’s transition to a new loan origination and servicing
software system; risks related to opening new branches, including
the ability or inability to open new branches as planned; risks
inherent in making loans, including repayment risks and value of
collateral, which risks may increase in light of adverse or
recessionary economic conditions; changes in interest rates; the
risk that Regional Management’s existing sources of liquidity
become insufficient to satisfy its needs or that its access to
these sources becomes unexpectedly restricted; changes in federal,
state, or local laws, regulations, or regulatory policies and
practices, and risks associated with the manner in which laws and
regulations are interpreted, implemented, and enforced; the timing
and amount of revenues that may be recognized by Regional
Management; changes in current revenue and expense trends
(including trends affecting delinquencies and credit losses);
changes in Regional Management’s markets and general changes in the
economy (particularly in the markets served by Regional
Management); changes in the competitive environment in which
Regional Management operates or in the demand for its products;
risks related to acquisitions; changes in operating and
administrative expenses; and the departure, transition, or
replacement of key personnel. Such factors and others are discussed
in greater detail in Regional Management’s filings with the
Securities and Exchange Commission. Regional Management will not
update the information contained in this press release beyond the
publication date, except to the extent required by law, and is not
responsible for changes made to this document by wire services or
Internet services.
About Regional Management Corp.
Regional Management Corp. (NYSE: RM) is a diversified consumer
finance company providing a broad array of loan products primarily
to customers with limited access to consumer credit from banks,
thrifts, credit card companies, and other traditional lenders.
Regional Management began operations in 1987 with four branches in
South Carolina and has since expanded its branch network across
South Carolina, Texas, North Carolina, Tennessee, Alabama,
Oklahoma, New Mexico, Georgia, and Virginia. Each of its loan
products is structured on a fixed rate, fixed term basis with fully
amortizing equal monthly installment payments and is repayable at
any time without penalty. Regional Management’s loans are sourced
through its multiple channel platform, including in its branches,
through direct mail campaigns, independent and franchise automobile
dealerships, online credit application networks, retailers, and its
consumer website. For more information, please visit www.RegionalManagement.com.
Regional Management Corp. and Subsidiaries
Consolidated Statements of Income (Unaudited) (in
thousands, except per share amounts)
Better (Worse) Better (Worse)
2Q 17 2Q 16 $ %
YTD 17 YTD 16 $
% Revenue Interest and fee income $ 59,787 $ 52,589 $
7,198 13.7 % $ 119,042 $ 103,889 $ 15,153 14.6 % Insurance income,
net 3,085 2,601 484 18.6 % 6,890 5,540 1,350 24.4 % Other income
2,466 2,135 331 15.5 %
5,226 4,593 633 13.8 %
Total revenue 65,338 57,325
8,013 14.0 % 131,158 114,022
17,136 15.0 % Expenses Provision for
credit losses 18,589 13,386 (5,203 ) (38.9
)%
37,723 27,177 (10,546 ) (38.8
)%
Personnel 18,387 16,674 (1,713 ) (10.3
)%
36,555 33,801 (2,754 ) (8.1
)%
Occupancy 5,419 4,770 (649 ) (13.6
)%
10,704 9,633 (1,071 ) (11.1
)%
Marketing 1,779 2,062 283 13.7 % 2,984 3,577 593 16.6 % Other
6,057 6,042 (15 ) (0.2
)%
12,853 12,342 (511 ) (4.1
)%
Total general and administrative 31,642 29,548 (2,094 ) (7.1
)%
63,096 59,353 (3,743 ) (6.3
)%
Interest expense 5,221 4,811
(410 ) (8.5
)%
10,434 9,521 (913 ) (9.6
)%
Income before income taxes 9,886 9,580 306 3.2 % 19,905
17,971 1,934 10.8 % Income taxes 3,751 3,668
(83 ) (2.3
)%
6,136 6,883 747 10.9 %
Net income $ 6,135 $ 5,912 $ 223 3.8 %
$ 13,769 $ 11,088 $ 2,681 24.2 % Net
income per common share: Basic $ 0.53 $ 0.50 $ 0.03
6.0 % $ 1.19 $ 0.90 $ 0.29 32.2 %
Diluted $ 0.52 $ 0.49 $ 0.03 6.1 % $
1.17 $ 0.89 $ 0.28 31.5 %
Weighted-average shares outstanding: Basic 11,554
11,756 202 1.7 % 11,524
12,256 732 6.0 % Diluted
11,730 11,974 244 2.0 %
11,723 12,462 739 5.9 %
Return on average assets (annualized) 3.5 %
3.8 % 3.9 % 3.6 % Return on average equity
(annualized) 11.3 % 12.0 % 12.9 % 11.1
%
Regional Management Corp. and Subsidiaries
Consolidated Balance Sheets (Unaudited) (in
thousands, except par value amounts)
Increase (Decrease) 2Q 17 2Q 16
$ % Assets Cash $ 3,678 $
2,827 $ 851 30.1 % Gross finance receivables 933,257 820,688
112,569 13.7 % Unearned finance charges and insurance premiums
(206,490 ) (174,944 ) (31,546 ) (18.0
)%
Finance receivables 726,767 645,744 81,023 12.5 % Allowance
for credit losses (42,000 ) (36,200 ) (5,800 )
(16.0
)%
Net finance receivables 684,767 609,544 75,223 12.3 %
Property and equipment 11,653 9,208 2,445 26.6 % Restricted cash
10,630 8,237 2,393 29.1 % Intangible assets 8,480 4,601 3,879 84.3
% Deferred tax asset 1,776 — 1,776 100.0 % Other assets
6,549 8,386 (1,837 ) (21.9
)%
Total assets $ 727,533 $ 642,803 $
84,730 13.2 %
Liabilities and Stockholders’
Equity Liabilities: Long-term debt $ 497,049 $ 441,147 $ 55,902
12.7 % Unamortized debt issuance costs (5,539 )
(2,285 ) (3,254 ) (142.4
)%
Net long-term debt 491,510 438,862 52,648 12.0 % Accounts
payable and accrued expenses 14,656 10,571 4,085 38.6 % Deferred
tax liability — 446 (446 )
(100.0 )% Total liabilities 506,166 449,879 56,287 12.5 %
Commitments and Contingencies Stockholders’ equity: Preferred stock
($0.10 par value, 100,000 shares authorized, no shares issued or
outstanding) — — — — Common stock ($0.10 par value, 1,000,000
shares authorized, 13,201 shares issued and 11,655 shares
outstanding at June 30, 2017 and 12,961 shares issued and 11,415
shares outstanding at June 30, 2016) 1,320 1,296 24 1.9 %
Additional paid-in-capital 92,535 90,828 1,707 1.9 % Retained
earnings 152,558 125,846 26,712 21.2 % Treasury stock (1,546 shares
at June 30, 2017 and 2016) (25,046 ) (25,046 )
— 0.0 % Total stockholders’ equity 221,367
192,924 28,443 14.7 %
Total liabilities and stockholders’ equity $ 727,533
$ 642,803 $ 84,730 13.2 %
Regional
Management Corp. and Subsidiaries Selected Financial
Data (Unaudited) (in thousands, except per share
amounts) Averages and Yields 2Q 17
1Q 17 2Q 16
Average
FinanceReceivables
Average
Yield(Annualized)
Average
FinanceReceivables
Average
Yield(Annualized)
Average
FinanceReceivables
Average
Yield(Annualized)
Small loans $ 341,184 42.9 % $ 349,521 42.3 % $ 313,388 43.0 %
Large loans 253,049 29.0 % 239,033 28.7 % 178,683 28.8 % Automobile
loans 83,082 16.5 % 88,150 16.6 % 103,626 17.9 % Retail loans
30,486 19.1 % 32,560 18.7 % 29,007 19.1 %
Total interest and fee yield $ 707,801 33.8 % $ 709,264 33.4
% $ 624,704 33.7 % Total revenue yield $ 707,801 36.9 % $
709,264 37.1 % $ 624,704 36.7 %
Components of Increase in Interest and
Fee Income2Q 17 Compared to 2Q 16Increase
(Decrease)
Volume Rate Volume & Rate
Net Small loans $ 2,988 $ (81 ) $ (7 ) $ 2,900 Large
loans 5,358 60 26 5,444 Automobile loans (921 ) (365 ) 73 (1,213 )
Retail loans 71 (3 ) (1 ) 67 Product mix (501 ) 568
(67 ) — Total increase in
interest and fee income $ 6,995 $ 179 $ 24 $
7,198
Net Loans Originated (1) 2Q
17 1Q 17
QoQ $Inc (Dec)
QoQ %
Inc (Dec)
2Q 16
YoY $
Inc (Dec)
YoY %
Inc (Dec)
Small loans $ 160,380 $ 115,359 $ 45,021 39.0 % $ 153,049 $ 7,331
4.8 % Large loans 86,771 57,020 29,751 52.2 % 72,174 14,597 20.2 %
Automobile loans 5,828 8,789 (2,961 ) (33.7
)%
9,355 (3,527 ) (37.7
)%
Retail loans 6,353 6,264 89 1.4 %
8,627 (2,274 ) (26.4
)%
Total net loans originated $ 259,332 $ 187,432 $ 71,900
38.4 % $ 243,205 $ 16,127 6.6 % (1)
Represents the balance of loan origination and refinancing net of
unearned finance charges
Other Key Metrics 2Q
17 1Q 17 2Q 16 Net credit losses $
17,589 $ 19,384 $ 13,416 Percentage of average finance receivables
(annualized) 9.9 % 10.9 % 8.6 % Provision for credit losses
$ 18,589 $ 19,134 $ 13,386 Percentage of average finance
receivables (annualized) 10.5 % 10.8 % 8.6 % Percentage of total
revenue 28.5 % 29.1 % 23.4 % General and administrative
expenses $ 31,642 $ 31,454 $ 29,548 Percentage of average finance
receivables (annualized) 17.9 % 17.7 % 18.9 % Percentage of total
revenue 48.4 % 47.8 % 51.5 % Same store results: Finance
receivables at period-end $ 723,547 $ 682,218 $ 611,589 Finance
receivable growth rate 12.0 % 12.6 % 9.5 % Number of branches in
calculation 336 329 306
Finance Receivables by
Product 2Q 17 1Q 17
QoQ $
Inc (Dec)
QoQ %
Inc (Dec)
2Q 16
YoY $
Inc (Dec)
YoY %
Inc (Dec)
Small loans $ 348,742 $ 335,552 $ 13,190 3.9 % $ 320,077 $ 28,665
9.0 % Large loans 267,921 242,380 25,541
10.5 % 194,857 73,064 37.5 %
Total core loans 616,663 577,932 38,731 6.7 % 514,934 101,729 19.8
% Automobile loans 79,861 85,869 (6,008 ) (7.0
)%
100,721 (20,860 ) (20.7
)%
Retail loans 30,243 31,203 (960 ) (3.1
)%
30,089 154 0.5 % Total finance
receivables $ 726,767 $ 695,004 $ 31,763 4.6 % $ 645,744 $
81,023 12.5 % Number of branches at period end
347 344 3 0.9 % 338 9 2.7 % Average finance receivables per branch
$ 2,094 $ 2,020 $ 74 3.7 % $ 1,910 $ 184 9.6 %
Contractual Delinquency by Aging 2Q 17
1Q 17 2Q 16 Allowance for credit losses $
42,000 5.8 % $ 41,000 5.9 % $ 36,200 5.6 %
Current 599,344 82.5 % 586,085 84.3 % 527,080 81.7 % 1 to 29
days past due 80,064 11.0 % 63,978 9.2 %
74,439 11.5 % Delinquent accounts: 30 to 59 days 17,018 2.3
% 13,860 2.1 % 16,710 2.5 % 60 to 89 days 10,726 1.5 % 9,889 1.4 %
10,045 1.6 % 90 to 119 days 7,793 1.0 % 7,569 1.0 % 7,237 1.1 % 120
to 149 days 6,302 0.9 % 6,975 1.0 % 5,358 0.8 % 150 to 179 days
5,520 0.8 % 6,648 1.0 % 4,875 0.8 %
Total contractual delinquency $ 47,359 6.5 % $ 44,941 6.5 % $
44,225 6.8 % Total finance receivables $ 726,767 100.0 % $
695,004 100.0 % $ 645,744 100.0 % 1 day and over past
due $ 127,423 17.5 % $ 108,919 15.7 % $ 118,664 18.3 %
Contractual Delinquency by Product 2Q 17
1Q 17 2Q 16 Small loans $ 26,610
7.6 % $ 26,573 7.9 % $ 26,436 8.3 % Large loans
13,839 5.2 % 12,142 5.0 % 8,459 4.3 % Automobile loans 5,172 6.5 %
4,513 5.3 % 7,768 7.7 % Retail loans 1,738 5.7 %
1,713 5.5 % 1,562 5.2 % Total contractual delinquency
$ 47,359 6.5 % $ 44,941 6.5 % $ 44,225 6.8 %
Quarterly Trend 2Q 16 3Q 16
4Q 16 1Q 17 2Q 17
QoQ $B(W)
YoY $B(W)
Revenue Interest and fee income $ 52,589 $ 57,420 $ 59,654 $ 59,255
$ 59,787 $ 532 $ 7,198 Insurance income, net 2,601 2,346 1,570
3,805 3,085 (720 ) 484 Other income 2,135 2,709
2,797 2,760 2,466 (294 ) 331
Total revenue 57,325 62,475
64,021 65,820 65,338 (482 ) 8,013
Expenses Provision for credit losses 13,386 16,410
19,427 19,134 18,589 545 (5,203 ) Personnel 16,674 18,180
16,998 18,168 18,387 (219 ) (1,713 ) Occupancy 4,770 5,175 5,251
5,285 5,419 (134 ) (649 ) Marketing 2,062 1,786 1,474 1,205 1,779
(574 ) 283 Other 6,042 5,312 5,103
6,796 6,057 739 (15 ) Total
general and administrative 29,548 30,453 28,826 31,454 31,642 (188
) (2,094 ) Interest expense 4,811 5,116
5,287 5,213 5,221 (8 ) (410 )
Income before income taxes 9,580 10,496 10,481 10,019 9,886 (133 )
306 Income taxes 3,668 4,020 4,014
2,385 3,751 (1,366 ) (83 ) Net income $
5,912 $ 6,476 $ 6,467 $ 7,634 $ 6,135 $ (1,499 ) $ 223
Net income per common share: Basic $ 0.50 $ 0.57 $ 0.57 $
0.66 $ 0.53 $ (0.13 ) $ 0.03 Diluted $ 0.49 $ 0.56 $
0.55 $ 0.65 $ 0.52 $ (0.13 ) $ 0.03 Weighted-average
shares outstanding: Basic 11,756 11,384 11,408
11,494 11,554 (60 ) 202
Diluted 11,974 11,664 11,763 11,715
11,730 (15 ) 244 Net
interest margin $ 52,514 $ 57,359 $ 58,734 $ 60,607 $ 60,117 $ (490
) $ 7,603 Net credit margin $ 39,128 $ 40,949 $
39,307 $ 41,473 $ 41,528 $ 55 $ 2,400
2Q
16 3Q 16 4Q 16 1Q 17 2Q 17
QoQ $Inc (Dec)
YoY $Inc (Dec)
Total assets $ 642,803 $ 691,329 $ 712,224 $ 690,432 $ 727,533 $
37,101 $ 84,730 Finance receivables $ 645,744
$ 696,149 $ 717,775 $ 695,004 $ 726,767 $ 31,763 $ 81,023
Allowance for credit losses $ 36,200 $ 39,100 $
41,250 $ 41,000 $ 42,000 $ 1,000 $ 5,800
Long-term debt $ 441,147 $ 481,766 $ 491,678 $ 462,994 $ 497,049 $
34,055 $ 55,902
General &
Administrative Expenses Trend 2Q 16 3Q 16
4Q 16 1Q 17 2Q 17
QoQ $B(W)
YoY $B(W)
Legacy operations expenses $ 18,224 $ 19,596 $ 19,238 $ 20,497 $
19,208 $ 1,289 $ (984 ) 2017 new branch expenses
276 499 (223 ) (499 )
Total operations expenses 18,224 19,596 19,238 20,773 19,707 1,066
(1,483 ) Marketing expenses 2,062 1,786 1,474 1,205 1,779 (574 )
283 Home office expenses 9,262 9,071 8,114
9,476 10,156 (680 ) (894 ) Total
G&A expenses $ 29,548 $ 30,453 $ 28,826 $ 31,454 $ 31,642 $
(188 ) $ (2,094 )
Averages and Yields YTD
17 YTD 16
Average
FinanceReceivables
Average Yield
Average
FinanceReceivables
Average Yield Small loans $ 346,752 42.4 % $ 320,806
42.3 % Large loans 246,564 28.8 % 166,312 28.4 % Automobile loans
85,580 16.5 % 107,463 18.1 % Retail loans 31,569 18.8 %
28,494 19.1 % Total interest and fee yield $ 710,465
33.5 % $ 623,075 33.3 % Total revenue yield $ 710,465 36.9 %
$ 623,075 36.6 %
Components of Increase in Interest and
Fee IncomeYTD 17 Compared to YTD 16Increase
(Decrease)
Volume Rate Volume & Rate
Net Small loans $ 5,485 $ 192 $ 15 $ 5,692 Large
loans 11,410 284 137 11,831 Automobile loans (1,975 ) (809 ) 165
(2,619 ) Retail loans 294 (41 ) (4 ) 249 Product mix (643 )
884 (241 ) — Total
increase in interest and fee income $ 14,571 $ 510 $
72 $ 15,153
Net Loans Originated
(1) YTD 17 YTD 16
YTD $Inc (Dec)
YTD %Inc (Dec)
Small loans $ 275,739 $ 267,426 $ 8,313 3.1 % Large loans 143,791
120,743 23,048 19.1 % Automobile loans 14,617 17,840 (3,223 ) (18.1
)% Retail loans 12,617 17,328 (4,711 ) (27.2
)%
Total net loans originated $ 446,764 $ 423,337 $ 23,427
5.5 % (1) Represents the balance of loan
origination and refinancing net of unearned finance charges
Other Key Metrics YTD 17 YTD 16 Net
credit losses $ 36,973 $ 28,429 Percentage of average finance
receivables (annualized) 10.4 % 9.1 % Provision for credit
losses $ 37,723 $ 27,177 Percentage of average finance receivables
(annualized) 10.6 % 8.7 % Percentage of total revenue 28.8 % 23.8 %
General and administrative expenses $ 63,096 $ 59,353
Percentage of average finance receivables (annualized) 17.8 % 19.1
% Percentage of total revenue 48.1 % 52.1 %
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version on businesswire.com: http://www.businesswire.com/news/home/20170801006502/en/
For Regional Management Corp.Investor RelationsGarrett Edson,
(203) 682-8331
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