- Net income of $6.0 million and diluted
earnings per share of $0.63 -
- 30+ day contractual delinquencies of 6.9% as
of June 30, 2023, an improvement of 30 basis points compared to
March 31, 2023 -
- Continued early indications of improved
credit performance in the second quarter -
Regional Management Corp. (NYSE: RM), a diversified consumer
finance company, today announced results for the second quarter
ended June 30, 2023.
“We are pleased with our second quarter results, which exceeded
our expectations on both the top and bottom lines,” said Robert W.
Beck, President and Chief Executive Officer of Regional Management
Corp. “We produced $6.0 million of net income and $0.63 of diluted
earnings per share. Loan demand remained strong in the quarter,
allowing us to generate high-quality portfolio growth and
near-record quarterly revenue while simultaneously maintaining a
conservative credit posture. We also continued to closely manage
our expenses while investing in our business, driving our
annualized operating expense ratio down to 13.6% in the quarter.
Our focus on portfolio quality, expense management, and strong
execution of our core business has enabled us to deliver
consistent, predictable, and superior results quarter after
quarter.”
“Our portfolio’s early-stage delinquencies continue to benefit
from several quarters of tightened underwriting criteria,” added
Mr. Beck. “Overall, we ended the quarter with a 30+ day delinquency
rate of 6.9%, a sequential improvement of 30 basis points from the
first quarter. Looking ahead, while we have been encouraged by
recent economic data indicating a strong labor market, moderating
inflation, and real wage growth, we continue to be comfortable
prioritizing higher credit quality over more rapid portfolio
growth. However, we remain prepared to lean back into growth when
justified by the economic conditions and the overall performance of
our portfolio. As always, we look forward to continuing our
delivery of controlled growth and profitability, sustainable
returns, and long-term value to our shareholders.”
Second Quarter 2023 Highlights
- Net income for the second quarter of 2023 was $6.0 million and
diluted earnings per share was $0.63.
- Net finance receivables as of June 30, 2023 were $1.7 billion,
an increase of $163.3 million, or 10.7%, from the prior-year
period.
- Large loan net finance receivables of $1.2 billion increased
$178.5 million, or 16.8%, from the prior-year period and
represented 73.3% of the total loan portfolio, compared to 69.4% in
the prior-year period.
- Small loan net finance receivables were $444.6 million, a
decrease of 2.3% from the prior-year period.
- Total loan originations were $399.0 million in the second
quarter of 2023, a decrease of $27.3 million, or 6.4%, from the
prior-year period.
- Total revenue for the second quarter of 2023 was $133.5
million, an increase of $10.6 million, or 8.6%, from the prior-year
period.
- Interest and fee income increased $8.3 million, or 7.6%,
primarily due to higher average net finance receivables.
- Insurance income, net increased $1.0 million, or 9.6%, driven
by portfolio growth.
- Provision for credit losses for the second quarter of 2023 was
$52.6 million, an increase of $7.2 million, or 15.8%, from the
prior-year period.
- Annualized net credit losses as a percentage of average net
finance receivables for the second quarter of 2023 were 13.1%,
compared to 10.0% in the prior-year period.
- The provision for credit losses for the second quarter of 2023
included a reserve reduction of $2.4 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 $181.4 million as of June 30,
2023, or 10.7% of net finance receivables.
- As of June 30, 2023, 30+ day contractual delinquencies totaled
$116.3 million, or 6.9% of net finance receivables, an improvement
of 30 basis points compared to March 31, 2023. The 30+ day
contractual delinquency compares favorably to the company’s $181.4
million allowance for credit losses as of June 30, 2023.
- General and administrative expenses for the second quarter of
2023 were $56.9 million, an increase of $2.8 million, or 5.1%, 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 2023 was 13.6%, a 110 basis
point improvement compared to the prior-year period.
Third Quarter 2023 Dividend
The company’s Board of Directors has declared a dividend of
$0.30 per common share for the third quarter of 2023. The dividend
will be paid on September 14, 2023 to shareholders of record as of
the close of business on August 23, 2023. 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, 2023, the company had net finance receivables of
$1.7 billion and debt of $1.3 billion. The debt consisted of:
- $105.4 million on the company’s $420 million senior revolving
credit facility,
- $50.2 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, 2023, the company’s unused capacity to fund
future growth on its revolving credit facilities (subject to the
borrowing base) was $641 million, or 80.6%, and the company had
available liquidity of [$147.2 million], including unrestricted
cash on hand and immediate availability to draw down cash from its
revolving credit facilities. As of June 30, 2023, the company’s
fixed-rate debt as a percentage of total debt was 88%, with a
weighted-average coupon of 3.6% and a weighted-average revolving
duration of 1.6 years.
The company had a funded debt-to-equity ratio of 4.2 to 1.0 and
a stockholders’ equity ratio of 18.7%, each as of June 30, 2023. On
a non-GAAP basis, the company had a funded debt-to-tangible equity
ratio of 4.4 to 1.0, as of June 30, 2023. 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 resurgence of
COVID-19), 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 23
2Q 22
$
%
YTD 23
YTD 22
$
%
Revenue
Interest and fee income
$
118,083
$
109,771
$
8,312
7.6
%
$
238,490
$
217,402
$
21,088
9.7
%
Insurance income, net
11,203
10,220
983
9.6
%
22,162
20,764
1,398
6.7
%
Other income
4,198
2,880
1,318
45.8
%
8,210
5,553
2,657
47.8
%
Total revenue
133,484
122,871
10,613
8.6
%
268,862
243,719
25,143
10.3
%
Expenses
Provision for credit losses
52,551
45,400
(7,151
)
(15.8
)%
100,219
76,258
(23,961
)
(31.4
)%
Personnel
36,419
33,941
(2,478
)
(7.3
)%
75,016
69,595
(5,421
)
(7.8
)%
Occupancy
6,158
6,156
(2
)
0.0
%
12,446
11,964
(482
)
(4.0
)%
Marketing
3,844
4,108
264
6.4
%
7,223
7,199
(24
)
(0.3
)%
Other
10,475
9,916
(559
)
(5.6
)%
21,534
20,463
(1,071
)
(5.2
)%
Total general and administrative
56,896
54,121
(2,775
)
(5.1
)%
116,219
109,221
(6,998
)
(6.4
)%
Interest expense
16,224
7,564
(8,660
)
(114.5
)%
33,006
7,505
(25,501
)
(339.8
)%
Income before income taxes
7,813
15,786
(7,973
)
(50.5
)%
19,418
50,735
(31,317
)
(61.7
)%
Income taxes
1,790
3,804
2,014
52.9
%
4,706
11,970
7,264
60.7
%
Net income
$
6,023
$
11,982
$
(5,959
)
(49.7
)%
$
14,712
$
38,765
$
(24,053
)
(62.0
)%
Net income per common share:
Basic
$
0.64
$
1.29
$
(0.65
)
(50.4
)%
$
1.57
$
4.13
$
(2.56
)
(62.0
)%
Diluted
$
0.63
$
1.24
$
(0.61
)
(49.2
)%
$
1.53
$
3.94
$
(2.41
)
(61.2
)%
Weighted-average common shares
outstanding:
Basic
9,399
9,261
(138
)
(1.5
)%
9,363
9,396
33
0.4
%
Diluted
9,566
9,669
103
1.1
%
9,595
9,845
250
2.5
%
Return on average assets (annualized)
1.4
%
3.2
%
1.7
%
5.2
%
Return on average equity (annualized)
7.6
%
16.0
%
9.3
%
26.3
%
Regional Management Corp. and
Subsidiaries
Consolidated Balance
Sheets
(Unaudited)
(dollars in thousands, except
par value amounts)
Increase (Decrease)
2Q 23
2Q 22
$
%
Assets
Cash
$
10,330
$
7,928
$
2,402
30.3
%
Net finance receivables
1,688,937
1,525,659
163,278
10.7
%
Unearned insurance premiums
(49,059
)
(48,986
)
(73
)
(0.1
)%
Allowance for credit losses
(181,400
)
(167,500
)
(13,900
)
(8.3
)%
Net finance receivables, less unearned
insurance premiums and allowance for credit losses
1,458,478
1,309,173
149,305
11.4
%
Restricted cash
131,132
144,802
(13,670
)
(9.4
)%
Lease assets
34,996
28,555
6,441
22.6
%
Restricted available-for-sale
investments
20,298
—
20,298
100.0
%
Deferred tax assets, net
15,278
19,798
(4,520
)
(22.8
)%
Property and equipment
14,689
12,808
1,881
14.7
%
Intangible assets
13,949
10,312
3,637
35.3
%
Other assets
24,466
14,568
9,898
67.9
%
Total assets
$
1,723,616
$
1,547,944
$
175,672
11.3
%
Liabilities and Stockholders’
Equity
Liabilities:
Debt
$
1,344,855
$
1,194,570
$
150,285
12.6
%
Unamortized debt issuance costs
(6,923
)
(10,819
)
3,896
36.0
%
Net debt
1,337,932
1,183,751
154,181
13.0
%
Lease liabilities
37,150
31,117
6,033
19.4
%
Accounts payable and accrued expenses
27,032
34,492
(7,460
)
(21.6
)%
Total liabilities
1,402,114
1,249,360
152,754
12.2
%
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, 14,636 shares issued and 9,829 shares
outstanding at June 30, 2023 and 14,390 shares issued and 9,584
shares outstanding at June 30, 2022)
1,464
1,439
25
1.7
%
Additional paid-in capital
116,202
108,345
7,857
7.3
%
Retained earnings
354,346
338,943
15,403
4.5
%
Accumulated other comprehensive loss
(367
)
—
(367
)
(100.0
)%
Treasury stock (4,807 shares at June 30,
2023 and 4,807 shares at June 30, 2022)
(150,143
)
(150,143
)
-
—
Total stockholders’ equity
321,502
298,584
22,918
7.7
%
Total liabilities and stockholders’
equity
$
1,723,616
$
1,547,944
$
175,672
11.3
%
Regional Management Corp. and
Subsidiaries
Selected Financial
Data
(Unaudited)
(dollars in thousands, except
per share amounts)
Net Finance Receivables by
Product
2Q 23
1Q 23
QoQ $ Inc (Dec)
QoQ % Inc (Dec)
2Q 22
YoY $ Inc (Dec)
YoY % Inc (Dec)
Small loans
$
444,590
$
456,313
$
(11,723
)
(2.6
)%
$
455,253
$
(10,663
)
(2.3
)%
Large loans
1,238,031
1,211,836
26,195
2.2
%
1,059,523
178,508
16.8
%
Retail loans
6,316
8,081
(1,765
)
(21.8
)%
10,883
(4,567
)
(42.0
)%
Total net finance receivables
$
1,688,937
$
1,676,230
$
12,707
0.8
%
$
1,525,659
$
163,278
10.7
%
Number of branches at period end
347
344
3
0.9
%
334
13
3.9
%
Net finance receivables per branch
$
4,867
$
4,873
$
(6
)
(0.1
)%
$
4,568
$
299
6.5
%
Averages and Yields
2Q 23
1Q 23
2Q 22
Average Net Finance
Receivables
Average Yield (1)
Average Net Finance
Receivables
Average Yield (1)
Average Net Finance
Receivables
Average Yield (1)
Small loans
$
443,601
34.5
%
$
467,851
35.0
%
$
437,226
35.8
%
Large loans
1,223,339
26.0
%
1,215,547
26.0
%
1,023,546
27.4
%
Retail loans
7,191
16.6
%
8,954
18.6
%
10,828
18.3
%
Total interest and fee yield
$
1,674,131
28.2
%
$
1,692,352
28.5
%
$
1,471,600
29.8
%
Total revenue yield
$
1,674,131
31.9
%
$
1,692,352
32.0
%
$
1,471,600
33.4
%
(1) Annualized interest and fee income as
a percentage of average net finance receivables.
Components of Increase in
Interest and Fee Income
2Q 23 Compared to 2Q
22
Increase (Decrease)
Volume
Rate
Volume & Rate
Total
Small loans
$
571
$
(1,409
)
$
(21
)
$
(859
)
Large loans
13,691
(3,617
)
(706
)
9,368
Retail loans
(166
)
(46
)
15
(197
)
Product mix
1,011
(901
)
(110
)
—
Total increase in interest and fee
income
$
15,107
$
(5,973
)
$
(822
)
$
8,312
Loans Originated (1)
2Q 23
1Q 23
QoQ $ Inc (Dec)
QoQ % Inc (Dec)
2Q 22
YoY $ Inc (Dec)
YoY % Inc (Dec)
Small loans
$
149,460
$
109,484
$
39,976
36.5
%
$
171,244
$
(21,784
)
(12.7
)%
Large loans
249,514
193,571
55,943
28.9
%
252,572
(3,058
)
(1.2
)%
Retail loans
—
146
(146
)
(100.0
)%
2,471
(2,471
)
(100.0
)%
Total loans originated
$
398,974
$
303,201
$
95,773
31.6
%
$
426,287
$
(27,313
)
(6.4
)%
(1) Represents the principal balance of
loan originations and refinancings.
Other Key Metrics
2Q 23
1Q 23
2Q 22
Net credit losses
$
54,951
$
42,668
$
36,700
Percentage of average net finance
receivables (annualized)
13.1
%
10.1
%
10.0
%
Provision for credit losses
$
52,551
$
47,668
$
45,400
Percentage of average net finance
receivables (annualized)
12.6
%
11.3
%
12.3
%
Percentage of total revenue
39.4
%
35.2
%
36.9
%
General and administrative expenses
$
56,896
$
59,323
$
54,121
Percentage of average net finance
receivables (annualized)
13.6
%
14.0
%
14.7
%
Percentage of total revenue
42.6
%
43.8
%
44.0
%
Same store results (1):
Net finance receivables at period-end
$
1,636,131
$
1,619,407
$
1,466,300
Net finance receivable growth rate
7.2
%
12.3
%
24.7
%
Number of branches in calculation
329
325
310
(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 by
Aging
2Q 23
1Q 23
2Q 22
Allowance for credit losses
$
181,400
10.7
%
$
183,800
11.0
%
$
167,500
11.0
%
Current
1,433,787
84.9
%
1,438,354
85.8
%
1,306,183
85.6
%
1 to 29 days past due
138,810
8.2
%
116,723
7.0
%
124,810
8.2
%
Delinquent accounts:
30 to 59 days
33,676
2.0
%
27,428
1.6
%
26,785
1.8
%
60 to 89 days
24,931
1.5
%
25,178
1.5
%
24,420
1.6
%
90 to 119 days
20,041
1.1
%
23,148
1.4
%
18,557
1.2
%
120 to 149 days
18,087
1.1
%
22,263
1.3
%
12,528
0.8
%
150 to 179 days
19,605
1.2
%
23,136
1.4
%
12,376
0.8
%
Total contractual delinquency
$
116,340
6.9
%
$
121,153
7.2
%
$
94,666
6.2
%
Total net finance receivables
$
1,688,937
100.0
%
$
1,676,230
100.0
%
$
1,525,659
100.0
%
1 day and over past due
$
255,150
15.1
%
$
237,876
14.2
%
$
219,476
14.4
%
Contractual Delinquency by
Product
2Q 23
1Q 23
2Q 22
Small loans
$
40,894
9.2
%
$
45,600
10.0
%
$
41,984
9.2
%
Large loans
74,637
6.0
%
74,606
6.2
%
51,763
4.9
%
Retail loans
809
12.8
%
947
11.7
%
919
8.4
%
Total contractual delinquency
$
116,340
6.9
%
$
121,153
7.2
%
$
94,666
6.2
%
Income Statement Quarterly
Trend
2Q 22
3Q 22
4Q 22
1Q 23
2Q 23
QoQ $ B(W)
YoY $ B(W)
Revenue
Interest and fee income
$
109,771
$
116,020
$
117,432
$
120,407
$
118,083
$
(2,324
)
$
8,312
Insurance income, net
10,220
11,987
10,751
10,959
11,203
244
983
Other income
2,880
3,445
3,833
4,012
4,198
186
1,318
Total revenue
122,871
131,452
132,016
135,378
133,484
(1,894
)
10,613
Expenses
Provision for credit losses
45,400
48,071
60,786
47,668
52,551
(4,883
)
(7,151
)
Personnel
33,941
36,979
34,669
38,597
36,419
2,178
(2,478
)
Occupancy
6,156
5,848
5,997
6,288
6,158
130
(2
)
Marketing
4,108
3,940
4,239
3,379
3,844
(465
)
264
Other
9,916
11,397
10,238
11,059
10,475
584
(559
)
Total general and administrative
54,121
58,164
55,143
59,323
56,896
2,427
(2,775
)
Interest expense
7,564
11,863
14,855
16,782
16,224
558
(8,660
)
Income before income taxes
15,786
13,354
1,232
11,605
7,813
(3,792
)
(7,973
)
Income taxes
3,804
3,286
(1,159
)
2,916
1,790
1,126
2,014
Net income
$
11,982
$
10,068
$
2,391
$
8,689
$
6,023
$
(2,666
)
$
(5,959
)
Net income per common share:
Basic
$
1.29
$
1.09
$
0.26
$
0.93
$
0.64
$
(0.29
)
$
(0.65
)
Diluted
$
1.24
$
1.06
$
0.25
$
0.90
$
0.63
$
(0.27
)
$
(0.61
)
Weighted-average shares outstanding:
Basic
9,261
9,195
9,199
9,325
9,399
(74
)
(138
)
Diluted
9,669
9,526
9,411
9,622
9,566
56
103
Balance Sheet Quarterly
Trend
2Q 22
3Q 22
4Q 22
1Q 23
2Q 23
QoQ $ Inc (Dec)
YoY $ Inc (Dec)
Total assets
$
1,547,944
$
1,606,550
$
1,724,987
$
1,701,114
$
1,723,616
$
22,502
$
175,672
Net finance receivables
$
1,525,659
$
1,607,598
$
1,699,393
$
1,676,230
$
1,688,937
$
12,707
$
163,278
Allowance for credit losses
$
167,500
$
179,800
$
178,800
$
183,800
$
181,400
$
(2,400
)
$
13,900
Debt
$
1,194,570
$
1,241,039
$
1,355,359
$
1,329,677
$
1,344,855
$
15,178
$
150,285
Other Key Metrics Quarterly
Trend
2Q 22
3Q 22
4Q 22
1Q 23
2Q 23
QoQ Inc (Dec)
YoY Inc (Dec)
Interest and fee yield (annualized)
29.8
%
29.6
%
28.5
%
28.5
%
28.2
%
(0.3
)%
(1.6
)%
Efficiency ratio (1)
44.0
%
44.2
%
41.8
%
43.8
%
42.6
%
(1.2
)%
(1.4
)%
Operating expense ratio (2)
14.7
%
14.9
%
13.4
%
14.0
%
13.6
%
(0.4
)%
(1.1
)%
30+ contractual delinquency
6.2
%
7.2
%
7.1
%
7.2
%
6.9
%
(0.3
)%
0.7
%
Net credit loss ratio (3)
10.0
%
9.1
%
15.0
%
10.1
%
13.1
%
3.0
%
3.1
%
Book value per share
$
31.15
$
32.18
$
32.41
$
33.06
$
32.71
$
(0.35
)
$
1.56
(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 23
YTD 22
Average Net Finance
Receivables
Average Yield
(Annualized)
Average Net Finance
Receivables
Average Yield
(Annualized)
Small loans
$
455,659
34.8
%
$
439,070
35.9
%
Large loans
1,219,464
26.0
%
1,003,326
27.4
%
Retail loans
8,068
17.7
%
10,725
18.3
%
Total interest and fee yield
$
1,683,191
28.3
%
$
1,453,121
29.9
%
Total revenue yield
$
1,683,191
31.9
%
$
1,453,121
33.5
%
(1) Annualized interest and fee income as
a percentage of average net finance receivables.
Components of Increase in
Interest and Fee Income
YTD 23 Compared to YTD
22
Increase (Decrease)
Volume
Rate
Volume & Rate
Total
Small loans
$
2,977
$
(2,421
)
$
(92
)
$
464
Large loans
29,648
(7,204
)
(1,552
)
20,892
Retail loans
(244
)
(33
)
9
(268
)
Product mix
2,040
(1,852
)
(188
)
—
Total increase in interest and fee
income
$
34,421
$
(11,510
)
$
(1,823
)
$
21,088
Loans Originated (1)
YTD 23
YTD 22
YTD $ Inc (Dec)
YTD % Inc (Dec)
Small loans
$
258,944
$
308,375
$
(49,431
)
(16.0
)%
Large loans
443,085
438,851
4,234
1.0
%
Retail loans
146
5,061
(4,915
)
(97.1
)%
Total loans originated
$
702,175
$
752,287
$
(50,112
)
(6.7
)%
(1) Represents the principal balance of
loan originations and refinancings.
Other Key Metrics
YTD 23
YTD 22
Net credit losses
$
97,619
$
68,058
Percentage of average net finance
receivables (annualized)
11.6
%
9.4
%
Provision for credit losses
$
100,219
$
76,258
Percentage of average net finance
receivables (annualized)
11.9
%
10.5
%
Percentage of total revenue
37.3
%
31.3
%
General and administrative expenses
$
116,219
$
109,221
Percentage of average net finance
receivables (annualized)
13.8
%
15.0
%
Percentage of total revenue
43.2
%
44.8
%
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 23
Debt
$
1,344,855
Total stockholders' equity
321,502
Less: Intangible assets
13,949
Tangible equity (non-GAAP)
$
307,553
Funded debt-to-equity ratio
4.2
x
Funded debt-to-tangible equity ratio
(non-GAAP)
4.4
x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230802337574/en/
Investor Relations Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
Regional Management (NYSE:RM)
Historical Stock Chart
From Oct 2024 to Nov 2024
Regional Management (NYSE:RM)
Historical Stock Chart
From Nov 2023 to Nov 2024
