Regional Management Corp. Announces Second Quarter 2024 Results
- Net income of
- 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
- Continued expense discipline with operating expense ratio of 13.8% -
“We are very pleased with our quarterly and year-to-date results,” said
“Along with our strong first half results, we continue to carefully manage our portfolio’s credit quality and performance,” added
“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
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.
-
Large loan net finance receivables of
-
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 ofJune 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 toJune 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
Liquidity and Capital Resources
As 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
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
Conference Call Information
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
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
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
The foregoing factors and others are discussed in greater detail in Regional Management’s filings with the
Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share amounts) |
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Better (Worse) |
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Better (Worse) |
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2Q 24 |
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2Q 23 |
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$ |
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% |
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|
YTD 24 |
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YTD 23 |
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$ |
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% |
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Revenue |
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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 |
|
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|
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 |
|
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|
133,484 |
|
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|
9,541 |
|
|
|
7.1 |
% |
|
|
287,333 |
|
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|
268,862 |
|
|
|
18,471 |
|
|
|
6.9 |
% |
|
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Expenses |
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||||||||
Provision for credit losses |
|
|
53,802 |
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|
52,551 |
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|
(1,251 |
) |
|
|
(2.4 |
)% |
|
|
100,225 |
|
|
|
100,219 |
|
|
|
(6 |
) |
|
|
— |
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Personnel |
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|
37,097 |
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|
36,419 |
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|
(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 |
)% |
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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: |
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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: |
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Basic |
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|
9,613 |
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|
9,399 |
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|
(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 |
% |
|
|
|
|
|
|
Consolidated Balance Sheets (Unaudited) (dollars in thousands, except par value amounts) |
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Increase (Decrease) |
|
|||||||
|
|
2Q 24 |
|
|
2Q 23 |
|
|
$ |
|
|
% |
|
||||
Assets |
|
|
|
|
|
|
|
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|
|
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|
||||
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 |
|
|
|
|
|
|
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|
||||
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 ( |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock ( |
|
|
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 |
% |
|
|
|
(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 |
% |
Selected Financial Data (Unaudited) (dollars in thousands, except per share amounts) |
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|
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Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
2Q 24 |
|
|
1Q 24 |
|
|
QoQ $
|
|
|
QoQ %
|
|
|
2Q 23 |
|
|
YoY $
|
|
|
YoY %
|
|
|||||||
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
|
|
|
Average Net Finance Receivables |
|
|
Average
|
|
|
Average Net Finance Receivables |
|
|
Average
|
|
||||||
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 $
|
|
|
QoQ %
|
|
|
2Q 23 |
|
|
YoY $
|
|
|
YoY %
|
|
|||||||
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 $
|
|
|
YoY $
|
|
|||||||
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 $
|
|
|
YoY $
|
|
|||||||
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
|
|
|
YoY
|
|
|||||||
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
|
|
|
Average Net Finance Receivables |
|
|
Average
|
|
||||
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 $
|
|
|
YTD %
|
|
||||
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
investor.relations@regionalmanagement.com
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