- Net income of $8.8 million and diluted
earnings per share of $0.91 -
- 30+ day contractual delinquency rate of 7.3%
as of September 30, 2023 -
- Third quarter ending net receivables of $1.8
billion -
Regional Management Corp. (NYSE: RM), a diversified consumer
finance company, today announced results for the third quarter
ended September 30, 2023.
“With a high-quality portfolio, prudent expense management, and
solid execution of our core business, we delivered another set of
strong results in the third quarter,” said Robert W. Beck,
President and Chief Executive Officer of Regional Management Corp.
“We generated $8.8 million of net income and $0.91 of diluted EPS.
Strong loan demand and our conservative underwriting criteria led
to high-quality portfolio growth of $62 million, record revenue of
$141 million, and a sequential increase in revenue yields of 80
basis points. We also continued to manage our expenses closely
while furthering our strategic initiatives, driving a 50 basis
point improvement in our operating expense ratio from the prior
year. We are pleased with our team’s ability to deliver consistent,
predictable, and superior results for our shareholders.”
“We remain well-positioned to operate effectively in the current
economic cycle,” added Mr. Beck. “We ended the quarter with a 30+
day delinquency rate of 7.3%, up 40 basis points from the second
quarter, consistent with normal seasonal trends. Our higher-quality
originations from credit tightening have kept our first payment
default and early-stage delinquency rates below 2019 levels. Recent
data indicates a strong labor market, moderating inflation, and
real wage growth, but we remain selective in making loans within
our tightened credit box. However, with ample liquidity,
significant borrowing capacity, and a large addressable market, we
stand ready to lean back into growth when justified by the economic
conditions and the overall performance of our loan portfolio.”
Third Quarter 2023 Highlights
- Net income for the third quarter of 2023 was $8.8 million and
diluted earnings per share was $0.91.
- Net finance receivables as of September 30, 2023 were $1.8
billion, an increase of $143.4 million, or 8.9%, from the
prior-year period.
- Large loan net finance receivables of $1.3 billion increased
$155.4 million, or 13.9%, from the prior-year period and
represented 72.6% of the total loan portfolio, compared to 69.4% in
the prior-year period.
- Small loan net finance receivables were $474.2 million, a
decrease of 1.3% from the prior-year period.
- Total loan originations were $425.1 million in the third
quarter of 2023, an increase of $6.4 million, or 1.5%, from the
prior-year period.
- Total revenue for the third quarter of 2023 was $140.9 million,
an increase of $9.4 million, or 7.2%, from the prior-year period.
- Interest and fee income increased $9.0 million, or 7.8%,
primarily due to higher average net finance receivables.
- Insurance income, net decreased $0.6 million, or 5.0%, due to
lower premiums.
- Provision for credit losses for the third quarter of 2023 was
$50.9 million, an increase of $2.9 million, or 5.9%, from the
prior-year period.
- Annualized net credit losses as a percentage of average net
finance receivables for the third quarter of 2023 were 11.0%,
compared to 9.1% in the prior-year period.
- The provision for credit losses for the third quarter of 2023
included a reserve increase of $3.5 million primarily due to
portfolio growth during the quarter, partially offset by changes in
estimated future macroeconomic impacts on credit losses.
- Allowance for credit losses was $184.9 million as of September
30, 2023, or 10.6% of net finance receivables.
- As of September 30, 2023, 30+ day contractual delinquencies
totaled $128.4 million, or 7.3% of net finance receivables, an
increase of 10 basis points compared to September 30, 2022. The 30+
day contractual delinquency compares favorably to the company’s
$184.9 million allowance for credit losses as of September 30,
2023.
- General and administrative expenses for the third quarter of
2023 were $62.1 million, an increase of $3.9 million, or 6.8%, from
the prior-year period.
- The operating expense ratio (annualized general and
administrative expenses as a percentage of average net finance
receivables) for the third quarter of 2023 was 14.4%, a 50 basis
point improvement compared to the prior-year period.
Fourth Quarter 2023 Dividend
The company’s Board of Directors has declared a dividend of
$0.30 per common share for the fourth quarter of 2023. The dividend
will be paid on December 13, 2023 to shareholders of record as of
the close of business on November 22, 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 September 30, 2023, the company had net finance
receivables of $1.8 billion and debt of $1.4 billion. The debt
consisted of:
- $131.3 million on the company’s $420 million senior revolving
credit facility,
- $52.2 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 September 30, 2023, the company’s unused capacity to fund
future growth on its revolving credit facilities (subject to the
borrowing base) was $613 million, or 77.1%, and the company had
available liquidity of $179.2 million, including unrestricted cash
on hand and immediate availability to draw down cash from its
revolving credit facilities. As of September 30, 2023, the
company’s fixed-rate debt as a percentage of total debt was 87%,
with a weighted-average coupon of 3.6% and a weighted-average
revolving duration of 1.3 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 September 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 September 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)
3Q 23
3Q 22
$
%
YTD 23
YTD 22
$
%
Revenue
Interest and fee income
$
125,018
$
116,020
$
8,998
7.8
%
$
363,508
$
333,422
$
30,086
9.0
%
Insurance income, net
11,382
11,987
(605
)
(5.0
)%
33,544
32,751
793
2.4
%
Other income
4,478
3,445
1,033
30.0
%
12,688
8,998
3,690
41.0
%
Total revenue
140,878
131,452
9,426
7.2
%
409,740
375,171
34,569
9.2
%
Expenses
Provision for credit losses
50,930
48,071
(2,859
)
(5.9
)%
151,149
124,329
(26,820
)
(21.6
)%
Personnel
39,832
36,979
(2,853
)
(7.7
)%
114,848
106,574
(8,274
)
(7.8
)%
Occupancy
6,315
5,848
(467
)
(8.0
)%
18,761
17,812
(949
)
(5.3
)%
Marketing
4,077
3,940
(137
)
(3.5
)%
11,300
11,139
(161
)
(1.4
)%
Other
11,880
11,397
(483
)
(4.2
)%
33,414
31,860
(1,554
)
(4.9
)%
Total general and administrative
62,104
58,164
(3,940
)
(6.8
)%
178,323
167,385
(10,938
)
(6.5
)%
Interest expense
16,947
11,863
(5,084
)
(42.9
)%
49,953
19,368
(30,585
)
(157.9
)%
Income before income taxes
10,897
13,354
(2,457
)
(18.4
)%
30,315
64,089
(33,774
)
(52.7
)%
Income taxes
2,077
3,286
1,209
36.8
%
6,783
15,256
8,473
55.5
%
Net income
$
8,820
$
10,068
$
(1,248
)
(12.4
)%
$
23,532
$
48,833
$
(25,301
)
(51.8
)%
Net income per common share:
Basic
$
0.94
$
1.09
$
(0.15
)
(13.8
)%
$
2.51
$
5.23
$
(2.72
)
(52.0
)%
Diluted
$
0.91
$
1.06
$
(0.15
)
(14.2
)%
$
2.45
$
5.01
$
(2.56
)
(51.1
)%
Weighted-average common shares
outstanding:
Basic
9,429
9,195
(234
)
(2.5
)%
9,385
9,329
(56
)
(0.6
)%
Diluted
9,650
9,526
(124
)
(1.3
)%
9,613
9,738
125
1.3
%
Return on average assets (annualized)
2.0
%
2.5
%
1.8
%
4.3
%
Return on average equity (annualized)
10.8
%
13.1
%
9.8
%
21.7
%
Regional Management Corp. and
Subsidiaries
Consolidated Balance
Sheets
(Unaudited)
(dollars in thousands, except
par value amounts)
Increase (Decrease)
3Q 23
3Q 22
$
%
Assets
Cash
$
7,413
$
3,140
$
4,273
136.1
%
Net finance receivables
1,751,009
1,607,598
143,411
8.9
%
Unearned insurance premiums
(48,764
)
(49,789
)
1,025
2.1
%
Allowance for credit losses
(184,900
)
(179,800
)
(5,100
)
(2.8
)%
Net finance receivables, less unearned
insurance premiums and allowance for credit losses
1,517,345
1,378,009
139,336
10.1
%
Restricted cash
117,029
113,865
3,164
2.8
%
Lease assets
34,864
30,153
4,711
15.6
%
Restricted available-for-sale
investments
22,510
20,290
2,220
10.9
%
Intangible assets
15,048
11,305
3,743
33.1
%
Property and equipment
14,157
12,370
1,787
14.4
%
Deferred tax assets, net
14,140
16,836
(2,696
)
(16.0
)%
Other assets
22,834
20,582
2,252
10.9
%
Total assets
$
1,765,340
$
1,606,550
$
158,790
9.9
%
Liabilities and Stockholders’
Equity
Liabilities:
Debt
$
1,372,748
$
1,241,039
$
131,709
10.6
%
Unamortized debt issuance costs
(5,647
)
(9,647
)
4,000
41.5
%
Net debt
1,367,101
1,231,392
135,709
11.0
%
Lease liabilities
37,095
32,468
4,627
14.3
%
Accounts payable and accrued expenses
30,559
34,237
(3,678
)
(10.7
)%
Total liabilities
1,434,755
1,298,097
136,658
10.5
%
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, 14,642 shares issued and 9,835 shares
outstanding at September 30, 2023 and 14,391 shares issued and
9,584 shares outstanding at September 30, 2022)
1,464
1,439
25
1.7
%
Additional paid-in capital
119,507
111,530
7,977
7.2
%
Retained earnings
360,155
346,083
14,072
4.1
%
Accumulated other comprehensive loss
(398
)
(456
)
58
12.7
%
Treasury stock (4,807 shares at September
30, 2023 and 4,807 shares at September 30, 2022)
(150,143
)
(150,143
)
—
—
Total stockholders’ equity
330,585
308,453
22,132
7.2
%
Total liabilities and stockholders’
equity
$
1,765,340
$
1,606,550
$
158,790
9.9
%
Regional Management Corp. and
Subsidiaries
Selected Financial
Data
(Unaudited)
(dollars in thousands, except
per share amounts)
Net Finance
Receivables
3Q 23
2Q 23
QoQ $ Inc (Dec)
QoQ % Inc (Dec)
3Q 22
YoY $ Inc (Dec)
YoY % Inc (Dec)
Small loans
$
474,181
$
444,590
$
29,591
6.7
%
$
480,199
$
(6,018
)
(1.3
)%
Large loans
1,271,891
1,238,031
33,860
2.7
%
1,116,455
155,436
13.9
%
Retail loans
4,937
6,316
(1,379
)
(21.8
)%
10,944
(6,007
)
(54.9
)%
Total net finance receivables
$
1,751,009
$
1,688,937
$
62,072
3.7
%
$
1,607,598
$
143,411
8.9
%
Number of branches at period end
347
347
—
—
338
9
2.7
%
Net finance receivables per branch
$
5,046
$
4,867
$
179
3.7
%
$
4,756
$
290
6.1
%
Averages and Yields
3Q 23
2Q 23
3Q 22
Average Net Finance
Receivables
Average Yield (1)
Average Net Finance
Receivables
Average Yield (1)
Average Net Finance
Receivables
Average Yield (1)
Small loans
$
459,320
36.6
%
$
443,601
34.5
%
$
466,087
35.5
%
Large loans
1,257,168
26.3
%
1,223,339
26.0
%
1,089,225
27.2
%
Retail loans
5,647
16.9
%
7,191
16.6
%
10,935
18.5
%
Total interest and fee yield
$
1,722,135
29.0
%
$
1,674,131
28.2
%
$
1,566,247
29.6
%
Total revenue yield
$
1,722,135
32.7
%
$
1,674,131
31.9
%
$
1,566,247
33.6
%
(1)
Annualized interest and fee income as a
percentage of average net finance receivables.
Components of Increase in
Interest and Fee Income
3Q 23 Compared to 3Q
22
Increase (Decrease)
Volume
Rate
Volume & Rate
Total
Small loans
$
(601
)
$
1,260
$
(18
)
$
641
Large loans
11,428
(2,428
)
(375
)
8,625
Retail loans
(245
)
(45
)
22
(268
)
Product mix
965
(1,106
)
141
—
Total increase in interest and fee
income
$
11,547
$
(2,319
)
$
(230
)
$
8,998
Loans Originated (1)
3Q 23
2Q 23
QoQ $ Inc (Dec)
QoQ % Inc (Dec)
3Q 22
YoY $ Inc (Dec)
YoY % Inc (Dec)
Small loans
$
173,074
$
149,460
$
23,614
15.8
%
$
173,269
$
(195
)
(0.1
)%
Large loans
251,999
249,514
2,485
1.0
%
243,259
8,740
3.6
%
Retail loans
—
—
—
—
2,145
(2,145
)
(100.0
)%
Total loans originated
$
425,073
$
398,974
$
26,099
6.5
%
$
418,673
$
6,400
1.5
%
(1)
Represents the principal balance of loan
originations and refinancings.
Other Key Metrics
3Q 23
2Q 23
3Q 22
Net credit losses
$
47,430
$
54,951
$
35,771
Percentage of average net finance
receivables (annualized)
11.0
%
13.1
%
9.1
%
Provision for credit losses
$
50,930
$
52,551
$
48,071
Percentage of average net finance
receivables (annualized)
11.8
%
12.6
%
12.3
%
Percentage of total revenue
36.2
%
39.4
%
36.6
%
General and administrative expenses
$
62,104
$
56,896
$
58,164
Percentage of average net finance
receivables (annualized)
14.4
%
13.6
%
14.9
%
Percentage of total revenue
44.1
%
42.6
%
44.2
%
Same store results (1):
Net finance receivables at period-end
$
1,684,757
$
1,636,131
$
1,552,740
Net finance receivable growth rate
4.9
%
7.2
%
19.2
%
Number of branches in calculation
330
329
315
(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
3Q 23
2Q 23
3Q 22
Allowance for credit losses
$
184,900
10.6
%
$
181,400
10.7
%
$
179,800
11.2
%
Current
1,472,931
84.2
%
1,433,787
84.9
%
1,356,134
84.4
%
1 to 29 days past due
149,648
8.5
%
138,810
8.2
%
135,468
8.4
%
Delinquent accounts:
30 to 59 days
36,502
2.1
%
33,676
2.0
%
32,295
2.0
%
60 to 89 days
28,130
1.6
%
24,931
1.5
%
25,375
1.6
%
90 to 119 days
23,420
1.3
%
20,041
1.1
%
21,720
1.3
%
120 to 149 days
21,309
1.2
%
18,087
1.1
%
17,503
1.1
%
150 to 179 days
19,069
1.1
%
19,605
1.2
%
19,103
1.2
%
Total contractual delinquency
$
128,430
7.3
%
$
116,340
6.9
%
$
115,996
7.2
%
Total net finance receivables
$
1,751,009
100.0
%
$
1,688,937
100.0
%
$
1,607,598
100.0
%
1 day and over past due
$
278,078
15.8
%
$
255,150
15.1
%
$
251,464
15.6
%
Contractual Delinquency by
Product
3Q 23
2Q 23
3Q 22
Small loans
$
45,438
9.6
%
$
40,894
9.2
%
$
49,906
10.4
%
Large loans
82,256
6.5
%
74,637
6.0
%
64,922
5.8
%
Retail loans
736
14.9
%
809
12.8
%
1,168
10.7
%
Total contractual delinquency
$
128,430
7.3
%
$
116,340
6.9
%
$
115,996
7.2
%
Income Statement Quarterly
Trend
3Q 22
4Q 22
1Q 23
2Q 23
3Q 23
QoQ $ B(W)
YoY $ B(W)
Revenue
Interest and fee income
$
116,020
$
117,432
$
120,407
$
118,083
$
125,018
$
6,935
$
8,998
Insurance income, net
11,987
10,751
10,959
11,203
11,382
179
(605
)
Other income
3,445
3,833
4,012
4,198
4,478
280
1,033
Total revenue
131,452
132,016
135,378
133,484
140,878
7,394
9,426
Expenses
Provision for credit losses
48,071
60,786
47,668
52,551
50,930
1,621
(2,859
)
Personnel
36,979
34,669
38,597
36,419
39,832
(3,413
)
(2,853
)
Occupancy
5,848
5,997
6,288
6,158
6,315
(157
)
(467
)
Marketing
3,940
4,239
3,379
3,844
4,077
(233
)
(137
)
Other
11,397
10,238
11,059
10,475
11,880
(1,405
)
(483
)
Total general and administrative
58,164
55,143
59,323
56,896
62,104
(5,208
)
(3,940
)
Interest expense
11,863
14,855
16,782
16,224
16,947
(723
)
(5,084
)
Income before income taxes
13,354
1,232
11,605
7,813
10,897
3,084
(2,457
)
Income taxes
3,286
(1,159
)
2,916
1,790
2,077
(287
)
1,209
Net income
$
10,068
$
2,391
$
8,689
$
6,023
$
8,820
$
2,797
$
(1,248
)
Net income per common share:
Basic
$
1.09
$
0.26
$
0.93
$
0.64
$
0.94
$
0.30
$
(0.15
)
Diluted
$
1.06
$
0.25
$
0.90
$
0.63
$
0.91
$
0.28
$
(0.15
)
Weighted-average shares outstanding:
Basic
9,195
9,199
9,325
9,399
9,429
(30
)
(234
)
Diluted
9,526
9,411
9,622
9,566
9,650
(84
)
(124
)
Balance Sheet Quarterly
Trend
3Q 22
4Q 22
1Q 23
2Q 23
3Q 23
QoQ $ Inc (Dec)
YoY $ Inc (Dec)
Total assets
$
1,606,550
$
1,724,987
$
1,701,114
$
1,723,616
$
1,765,340
$
41,724
$
158,790
Net finance receivables
$
1,607,598
$
1,699,393
$
1,676,230
$
1,688,937
$
1,751,009
$
62,072
$
143,411
Allowance for credit losses
$
179,800
$
178,800
$
183,800
$
181,400
$
184,900
$
3,500
$
5,100
Debt
$
1,241,039
$
1,355,359
$
1,329,677
$
1,344,855
$
1,372,748
$
27,893
$
131,709
Other Key Metrics Quarterly
Trend
3Q 22
4Q 22
1Q 23
2Q 23
3Q 23
QoQ Inc (Dec)
YoY Inc (Dec)
Interest and fee yield (annualized)
29.6
%
28.5
%
28.5
%
28.2
%
29.0
%
0.8
%
(0.6
)%
Efficiency ratio (1)
44.2
%
41.8
%
43.8
%
42.6
%
44.1
%
1.5
%
(0.1
)%
Operating expense ratio (2)
14.9
%
13.4
%
14.0
%
13.6
%
14.4
%
0.8
%
(0.5
)%
30+ contractual delinquency
7.2
%
7.1
%
7.2
%
6.9
%
7.3
%
0.4
%
0.1
%
Net credit loss ratio (3)
9.1
%
15.0
%
10.1
%
13.1
%
11.0
%
(2.1
)%
1.9
%
Book value per share
$
32.18
$
32.41
$
33.06
$
32.71
$
33.61
$
0.90
$
1.43
(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 (1)
Average Net Finance
Receivables
Average Yield (1)
Small loans
$
456,893
35.4
%
$
448,175
35.8
%
Large loans
1,232,170
26.1
%
1,032,273
27.4
%
Retail loans
7,252
17.5
%
10,796
18.4
%
Total interest and fee yield
$
1,696,315
28.6
%
$
1,491,244
29.8
%
Total revenue yield
$
1,696,315
32.2
%
$
1,491,244
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
$
2,338
$
(1,208
)
$
(24
)
$
1,106
Large loans
41,004
(9,624
)
(1,864
)
29,516
Retail loans
(488
)
(71
)
23
(536
)
Product mix
2,997
(2,956
)
(41
)
—
Total increase in interest and fee
income
$
45,851
$
(13,859
)
$
(1,906
)
$
30,086
Loans Originated (1)
YTD 23
YTD 22
YTD $ Inc (Dec)
YTD % Inc (Dec)
Small loans
$
432,018
$
481,644
$
(49,626
)
(10.3
)%
Large loans
695,084
682,110
12,974
1.9
%
Retail loans
146
7,206
(7,060
)
(98.0
)%
Total loans originated
$
1,127,248
$
1,170,960
$
(43,712
)
(3.7
)%
(1)
Represents the principal balance of loan
originations and refinancings.
Other Key Metrics
YTD 23
YTD 22
Net credit losses
$
145,049
$
103,829
Percentage of average net finance
receivables (annualized)
11.4
%
9.3
%
Provision for credit losses
$
151,149
$
124,329
Percentage of average net finance
receivables (annualized)
11.9
%
11.1
%
Percentage of total revenue
36.9
%
33.1
%
General and administrative expenses
$
178,323
$
167,385
Percentage of average net finance
receivables (annualized)
14.0
%
15.0
%
Percentage of total revenue
43.5
%
44.6
%
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.
3Q 23
Debt
$
1,372,748
Total stockholders' equity
330,585
Less: Intangible assets
15,048
Tangible equity (non-GAAP)
$
315,537
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/20231101241638/en/
Investor Relations Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
Regional Management (NYSE:RM)
過去 株価チャート
から 4 2024 まで 5 2024
Regional Management (NYSE:RM)
過去 株価チャート
から 5 2023 まで 5 2024