Regional Management Corp. Announces Third Quarter 2025 Results
- Net income of
- Record originations and
- Net credit loss rate of
- Annualized operating expense ratio of
- Increases authorization under stock repurchase program from
“Building on our strong second-quarter momentum, we delivered another outstanding performance in the third quarter,” said Robert W. Beck, President and Chief Executive Officer of Regional Management Corp. “We achieved net income of
“Our success reflects disciplined execution of our growth strategies, strong credit management, and continued investment in technology and analytics,” added Mr. Beck. “Total originations hit another record, up
“At the same time, we have maintained expense discipline, with revenue growth outpacing G&A expense growth by 12 times, even as we invest in innovation and new branches,” continued Mr. Beck. “Our consistent capital generation has supported
“Looking ahead, we are confident in our position and strategy,” added Mr. Beck. “We plan to open additional branches in
Third Quarter 2025 Highlights
-
Net income for the third quarter of 2025 was
$14.4 million $1.42 87.3% and86.8% year-over-year, respectively.
-
Net finance receivables as of September 30, 2025 were a record
$2.1 billion $233.3 million 12.8% , from the prior-year period, driven by strong performance from the digital channel, receivables growth in 16 new branches opened since the third quarter of 2024, and strong execution of the company’s barbell strategy, which balances growth in higher-quality, auto-secured products with growth in the higher-margin small loan portfolio.
-
Record total originations of
$522.3 million 22.5% from the prior-year period, while maintaining conservative underwriting criteria.
-
Large loan net finance receivables of
$1.5 billion $218.7 million 16.9% , from the prior-year period and represented73.7% of the total loan portfolio, compared to71.1% in the prior-year period.
-
Auto-secured net finance receivables of
$275.4 million $79.6 million 40.6% , from the prior-year period and represented13.4% of the total loan portfolio, compared to10.8% in the prior-year period.
-
Small loan net finance receivables of
$540.9 million $14.5 million 2.8% , from the prior-year period and represented26.3% of the total loan portfolio, compared to28.9% in the prior-year period.
-
Net finance receivables with annual percentage rates (APRs) above
36% increased by12.9% year-over-year and represent17.8% of the portfolio, consistent with the prior-year period.
-
Customer accounts improved by
5.0% from the prior-year period.
-
Record quarterly total revenue of
$165.5 million $19.1 million 13.1% , from the prior-year period, primarily due to growth in average net finance receivables.
-
Total revenue yield for the third quarter of 2025 was
33.1% , compared to32.6% in the prior-year period, an improvement of 50 basis points. The prior-year period was inclusive of lower revenue from personal property insurance claims and reserves associated with hurricane activity, negatively impacting the prior-year period total revenue yield by 80 basis points. Due to product mix shift to large loans, total revenue yield for the third quarter 2025 was 30 basis points lower year-over-year after adjusting for the prior-year hurricane impact.
- Interest and fee yield decreased 20 basis points from the prior-year period due to product mix shift to large loans.
-
Provision for credit losses for the third quarter of 2025 was
$60.5 million $6.1 million 11.3% , from the prior-year period, driven by portfolio growth.
-
The net credit loss rate (annualized net credit losses as a percentage of average net finance receivables) for the third quarter of 2025 was
10.2% , a 40 basis point improvement compared to10.6% in the prior-year period, due to credit tightening, effective portfolio management, and product mix.
-
The provision for credit losses for the third quarter of 2025 included a sequential reserve increase of
$9.2 million
-
The allowance for credit losses was
$212.0 million 10.3% of net finance receivables, stable sequentially and an improvement compared to10.6% in the prior-year period, which included an estimated 20 basis points related to prior-year hurricane activity.
-
As of September 30, 2025, 30+ day contractual delinquencies totaled
$144.3 million 7.0% of net finance receivables, a 40 basis point seasonal increase sequentially and a 10 basis point increase from the prior-year period. The 30+ day contractual delinquency rate improved 30 basis points year-over-year after adjusting for the impact in the prior year of special borrower assistance programs associated with hurricane activity.
-
The delinquency rate of the large loan portfolio was
5.7% as of the end of the third quarter of 2025, a 20 basis point improvement from the prior-year period and a 60 basis point improvement from the prior-year period after adjusting for the prior-year hurricane impact.
-
The delinquency rate of the small loan portfolio was
10.8% as of the end of the third quarter of 2025, a 140 basis point increase from the prior-year period and a 90 basis point increase from the prior-year period after adjusting for the prior-year hurricane impact, reflecting faster growth in the higher-margin portfolio in 2024 compared to 2025.
-
General and administrative expenses for the third quarter of 2025 were
$64.1 million $1.6 million 12.8% , an all-time best despite investment in innovation and growth. The ratio reflected improvements of 40 basis points and 110 basis points from13.2% and13.9% in the prior-quarter and prior-year periods, respectively. Revenue growth outpaced G&A expense growth by 12x in the third quarter.
-
In the third quarter of 2025, the company repurchased 153,552 shares of its common stock at a weighted-average price of
$32.56
Fourth Quarter 2025 Dividend and Increase in Stock Repurchase Program Authorization
The company’s Board of Directors has declared a dividend of
In addition, the company’s Board of Directors has approved a
Share repurchases under the stock repurchase program may be made in the open market at prevailing market prices, through privately negotiated transactions, or through other structures in accordance with applicable federal securities laws, at times and in amounts as management deems appropriate. The timing and the amount of any common stock repurchases will be determined by the company’s management based on its evaluation of market conditions, the company’s liquidity needs, legal and contractual requirements and restrictions (including covenants in the company’s credit agreements), share price, and other factors. Repurchases of common stock may be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the company might otherwise be precluded from doing so under insider trading laws. The repurchase program does not obligate the company to purchase any particular number of shares and may be suspended, modified, or discontinued at any time without prior notice.
Liquidity and Capital Resources
As of September 30, 2025, the company had net finance receivables of
-
$196.2 million $355 million -
$186.2 million $425 million -
$1.2 billion
As of September 30, 2025, the company’s unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was
In October, the company closed a
The company had a funded debt-to-equity ratio of 4.3 to 1.0 and a stockholders’ equity ratio of
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 (877) 407-0752 (toll-free) or (201) 389-0912 (international). 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
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; impacts of a prolonged
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 25 |
|
3Q 24 |
|
$ |
|
% |
|
YTD 25 |
|
YTD 24 |
|
$ |
|
% |
|
||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest and fee income |
$ |
148,672 |
|
$ |
133,932 |
|
$ |
14,740 |
|
|
11.0 |
% |
$ |
425,920 |
|
$ |
390,648 |
|
$ |
35,272 |
|
|
9.0 |
% |
Insurance income, net |
|
11,391 |
|
|
7,422 |
|
|
3,969 |
|
|
53.5 |
% |
|
34,187 |
|
|
28,903 |
|
|
5,284 |
|
|
18.3 |
% |
Other income |
|
5,424 |
|
|
4,984 |
|
|
440 |
|
|
8.8 |
% |
|
15,789 |
|
|
14,120 |
|
|
1,669 |
|
|
11.8 |
% |
Total revenue |
|
165,487 |
|
|
146,338 |
|
|
19,149 |
|
|
13.1 |
% |
|
475,896 |
|
|
433,671 |
|
|
42,225 |
|
|
9.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Provision for credit losses |
|
60,474 |
|
|
54,349 |
|
|
(6,125 |
) |
|
(11.3 |
)% |
|
179,053 |
|
|
154,574 |
|
|
(24,479 |
) |
|
(15.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Personnel |
|
39,517 |
|
|
38,323 |
|
|
(1,194 |
) |
|
(3.1 |
)% |
|
119,243 |
|
|
113,240 |
|
|
(6,003 |
) |
|
(5.3 |
)% |
Occupancy |
|
7,160 |
|
|
6,551 |
|
|
(609 |
) |
|
(9.3 |
)% |
|
20,977 |
|
|
19,075 |
|
|
(1,902 |
) |
|
(10.0 |
)% |
Marketing |
|
4,212 |
|
|
5,078 |
|
|
866 |
|
|
17.1 |
% |
|
14,677 |
|
|
14,229 |
|
|
(448 |
) |
|
(3.1 |
)% |
Other |
|
13,179 |
|
|
12,516 |
|
|
(663 |
) |
|
(5.3 |
)% |
|
38,159 |
|
|
36,508 |
|
|
(1,651 |
) |
|
(4.5 |
)% |
Total general and administrative |
|
64,068 |
|
|
62,468 |
|
|
(1,600 |
) |
|
(2.6 |
)% |
|
193,056 |
|
|
183,052 |
|
|
(10,004 |
) |
|
(5.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
21,971 |
|
|
19,356 |
|
|
(2,615 |
) |
|
(13.5 |
)% |
|
62,168 |
|
|
54,725 |
|
|
(7,443 |
) |
|
(13.6 |
)% |
Income before income taxes |
|
18,974 |
|
|
10,165 |
|
|
8,809 |
|
|
86.7 |
% |
|
41,619 |
|
|
41,320 |
|
|
299 |
|
|
0.7 |
% |
Income taxes |
|
4,618 |
|
|
2,502 |
|
|
(2,116 |
) |
|
(84.6 |
)% |
|
10,116 |
|
|
10,007 |
|
|
(109 |
) |
|
(1.1 |
)% |
Net income |
$ |
14,356 |
|
$ |
7,663 |
|
$ |
6,693 |
|
|
87.3 |
% |
$ |
31,503 |
|
$ |
31,313 |
|
$ |
190 |
|
|
0.6 |
% |
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.53 |
|
$ |
0.79 |
|
$ |
0.74 |
|
|
93.7 |
% |
$ |
3.32 |
|
$ |
3.25 |
|
$ |
0.07 |
|
|
2.2 |
% |
Diluted |
$ |
1.42 |
|
$ |
0.76 |
|
$ |
0.66 |
|
|
86.8 |
% |
$ |
3.15 |
|
$ |
3.16 |
|
$ |
(0.01 |
) |
|
(0.3 |
)% |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
9,370 |
|
|
9,683 |
|
|
313 |
|
|
3.2 |
% |
|
9,493 |
|
|
9,622 |
|
|
129 |
|
|
1.3 |
% |
Diluted |
|
10,133 |
|
|
10,090 |
|
|
(43 |
) |
|
(0.4 |
)% |
|
10,000 |
|
|
9,900 |
|
|
(100 |
) |
|
(1.0 |
)% |
Return on average assets (annualized) |
|
2.9 |
% |
|
1.7 |
% |
|
|
|
|
|
2.2 |
% |
|
2.3 |
% |
|
|
|
|
||||
Return on average equity (annualized) |
|
15.6 |
% |
|
8.7 |
% |
|
|
|
|
|
11.7 |
% |
|
12.3 |
% |
|
|
|
|
||||
Regional Management Corp. and Subsidiaries Consolidated Balance Sheets (Unaudited) (dollars in thousands, except par value amounts) |
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|
|
|
|
|
Increase (Decrease) |
|
||||||
|
3Q 25 |
|
3Q 24 |
|
$ |
|
% |
|
||||
Assets |
|
|
|
|
|
|
|
|
||||
Cash |
$ |
4,084 |
|
$ |
4,745 |
|
$ |
(661 |
) |
|
(13.9 |
)% |
Net finance receivables |
|
2,053,017 |
|
|
1,819,756 |
|
|
233,261 |
|
|
12.8 |
% |
Unearned insurance premiums |
|
(50,987 |
) |
|
(46,508 |
) |
|
(4,479 |
) |
|
(9.6 |
)% |
Allowance for credit losses |
|
(212,000 |
) |
|
(192,100 |
) |
|
(19,900 |
) |
|
(10.4 |
)% |
Net finance receivables, less unearned insurance premiums and allowance for credit losses |
|
1,790,030 |
|
|
1,581,148 |
|
|
208,882 |
|
|
13.2 |
% |
Restricted cash |
|
104,459 |
|
|
115,576 |
|
|
(11,117 |
) |
|
(9.6 |
)% |
Lease assets |
|
40,782 |
|
|
37,229 |
|
|
3,553 |
|
|
9.5 |
% |
Intangible assets |
|
30,385 |
|
|
22,250 |
|
|
8,135 |
|
|
36.6 |
% |
Restricted available-for-sale investments |
|
22,344 |
|
|
21,727 |
|
|
617 |
|
|
2.8 |
% |
Property and equipment |
|
12,996 |
|
|
13,425 |
|
|
(429 |
) |
|
(3.2 |
)% |
Deferred tax assets, net |
|
587 |
|
|
11,833 |
|
|
(11,246 |
) |
|
(95.0 |
)% |
Other assets |
|
22,599 |
|
|
13,898 |
|
|
8,701 |
|
|
62.6 |
% |
Total assets |
$ |
2,028,266 |
|
$ |
1,821,831 |
|
$ |
206,435 |
|
|
11.3 |
% |
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
||||
Liabilities: |
|
|
|
|
|
|
|
|
||||
Debt |
$ |
1,581,992 |
|
$ |
1,395,892 |
|
$ |
186,100 |
|
|
13.3 |
% |
Unamortized debt issuance costs |
|
(7,521 |
) |
|
(4,645 |
) |
|
(2,876 |
) |
|
(61.9 |
)% |
Net debt |
|
1,574,471 |
|
|
1,391,247 |
|
|
183,224 |
|
|
13.2 |
% |
Lease liabilities |
|
42,906 |
|
|
39,350 |
|
|
3,556 |
|
|
9.0 |
% |
Other liabilities |
|
38,971 |
|
|
38,306 |
|
|
665 |
|
|
1.7 |
% |
Total liabilities |
|
1,656,348 |
|
|
1,468,903 |
|
|
187,445 |
|
|
12.8 |
% |
Stockholders’ equity: |
|
|
|
|
|
|
|
|
||||
Preferred stock ( |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Common stock ( |
|
1,522 |
|
|
1,497 |
|
|
25 |
|
|
1.7 |
% |
Additional paid-in capital |
|
139,868 |
|
|
129,936 |
|
|
9,932 |
|
|
7.6 |
% |
Retained earnings |
|
400,844 |
|
|
371,725 |
|
|
29,119 |
|
|
7.8 |
% |
Accumulated other comprehensive loss |
|
(10 |
) |
|
(87 |
) |
|
77 |
|
|
88.5 |
% |
Treasury stock (5,417 shares at September 30, 2025 and 4,807 shares at
|
|
(170,306 |
) |
|
(150,143 |
) |
|
(20,163 |
) |
|
(13.4 |
)% |
Total stockholders’ equity |
|
371,918 |
|
|
352,928 |
|
|
18,990 |
|
|
5.4 |
% |
Total liabilities and stockholders’ equity |
$ |
2,028,266 |
|
$ |
1,821,831 |
|
$ |
206,435 |
|
|
11.3 |
% |
Regional Management Corp. and Subsidiaries Selected Financial Data (Unaudited) (dollars in thousands, except per share amounts) |
||||||||||||||||||||||||||||
|
|
Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
3Q 25 |
|
|
2Q 25 |
|
|
QoQ $
|
|
|
QoQ %
|
|
|
3Q 24 |
|
|
YoY $
|
|
|
YoY %
|
|
|||||||
Large loans |
|
$ |
1,512,140 |
|
|
$ |
1,413,367 |
|
|
$ |
98,773 |
|
|
|
7.0 |
% |
|
$ |
1,293,410 |
|
|
$ |
218,730 |
|
|
|
16.9 |
% |
Small loans |
|
|
540,877 |
|
|
|
546,997 |
|
|
|
(6,120 |
) |
|
|
(1.1 |
)% |
|
|
526,346 |
|
|
|
14,531 |
|
|
|
2.8 |
% |
Total |
|
$ |
2,053,017 |
|
|
$ |
1,960,364 |
|
|
$ |
92,653 |
|
|
|
4.7 |
% |
|
$ |
1,819,756 |
|
|
$ |
233,261 |
|
|
|
12.8 |
% |
Number of branches |
|
|
349 |
|
|
|
352 |
|
|
|
(3 |
) |
|
|
(0.9 |
)% |
|
|
340 |
|
|
|
9 |
|
|
|
2.6 |
% |
Net finance receivables per branch |
|
$ |
5,883 |
|
|
$ |
5,569 |
|
|
$ |
314 |
|
|
|
5.6 |
% |
|
$ |
5,352 |
|
|
$ |
531 |
|
|
|
9.9 |
% |
|
|
Average Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
3Q 25 |
|
|
2Q 25 |
|
|
QoQ $
|
|
|
QoQ %
|
|
|
3Q 24 |
|
|
YoY $
|
|
|
YoY %
|
|
|||||||
Large loans |
|
$ |
1,460,187 |
|
|
$ |
1,372,783 |
|
|
$ |
87,404 |
|
|
|
6.4 |
% |
|
$ |
1,279,720 |
|
|
$ |
180,467 |
|
|
|
14.1 |
% |
Small loans |
|
|
541,201 |
|
|
|
540,106 |
|
|
|
1,095 |
|
|
|
0.2 |
% |
|
|
513,089 |
|
|
|
28,112 |
|
|
|
5.5 |
% |
Total |
|
$ |
2,001,388 |
|
|
$ |
1,912,889 |
|
|
$ |
88,499 |
|
|
|
4.6 |
% |
|
$ |
1,792,809 |
|
|
$ |
208,579 |
|
|
|
11.6 |
% |
|
|
Revenue Yields (1) |
|
|||||||||||||||||
|
|
3Q 25 |
|
|
2Q 25 |
|
|
QoQ
|
|
|
3Q 24 |
|
|
YoY
|
|
|||||
Large loans |
|
|
27.1 |
% |
|
|
26.6 |
% |
|
|
0.5 |
% |
|
|
26.7 |
% |
|
|
0.4 |
% |
Small loans |
|
|
36.7 |
% |
|
|
36.5 |
% |
|
|
0.2 |
% |
|
|
37.8 |
% |
|
|
(1.1 |
)% |
Total interest and fee yield |
|
|
29.7 |
% |
|
|
29.4 |
% |
|
|
0.3 |
% |
|
|
29.9 |
% |
|
|
(0.2 |
)% |
Total revenue yield |
|
|
33.1 |
% |
|
|
32.9 |
% |
|
|
0.2 |
% |
|
|
32.6 |
% |
|
|
0.5 |
% |
(1) |
Annualized as a percentage of average net finance receivables. |
|
|
Components of Increase in Interest and Fee Income |
|
|||||||||||||
|
|
3Q 25 Compared to 3Q 24 |
|
|||||||||||||
|
|
Increase (Decrease) |
|
|||||||||||||
|
|
Volume |
|
|
Rate |
|
|
Volume & Rate |
|
|
Total |
|
||||
Large loans |
|
$ |
12,056 |
|
|
$ |
1,242 |
|
|
$ |
176 |
|
|
$ |
13,474 |
|
Small loans |
|
|
2,654 |
|
|
|
(1,316 |
) |
|
|
(72 |
) |
|
|
1,266 |
|
Product mix |
|
|
872 |
|
|
|
(680 |
) |
|
|
(192 |
) |
|
|
— |
|
Total |
|
$ |
15,582 |
|
|
$ |
(754 |
) |
|
$ |
(88 |
) |
|
$ |
14,740 |
|
|
|
Loans Originated (1) |
|
|||||||||||||||||||||||||
|
|
3Q 25 |
|
|
2Q 25 |
|
|
QoQ $
|
|
|
QoQ %
|
|
|
3Q 24 |
|
|
YoY $
|
|
|
YoY %
|
|
|||||||
Large loans |
|
$ |
363,055 |
|
|
$ |
336,473 |
|
|
$ |
26,582 |
|
|
|
7.9 |
% |
|
$ |
251,563 |
|
|
$ |
111,492 |
|
|
|
44.3 |
% |
Small loans |
|
|
159,210 |
|
|
|
173,856 |
|
|
|
(14,646 |
) |
|
|
(8.4 |
)% |
|
|
174,632 |
|
|
|
(15,422 |
) |
|
|
(8.8 |
)% |
Total |
|
$ |
522,265 |
|
|
$ |
510,329 |
|
|
$ |
11,936 |
|
|
|
2.3 |
% |
|
$ |
426,195 |
|
|
$ |
96,070 |
|
|
|
22.5 |
% |
(1) |
Represents the principal balance of loan originations and refinancings. |
|
|
Other Key Metrics |
|
|||||||||
|
|
3Q 25 |
|
|
2Q 25 |
|
|
3Q 24 |
|
|||
Net credit losses |
|
$ |
51,274 |
|
|
$ |
56,887 |
|
|
$ |
47,649 |
|
Percentage of average net finance receivables (annualized) |
|
|
10.2 |
% |
|
|
11.9 |
% |
|
|
10.6 |
% |
Provision for credit losses |
|
$ |
60,474 |
|
|
$ |
60,587 |
|
|
$ |
54,349 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.1 |
% |
|
|
12.7 |
% |
|
|
12.1 |
% |
Percentage of total revenue |
|
|
36.5 |
% |
|
|
38.5 |
% |
|
|
37.1 |
% |
General and administrative expenses |
|
$ |
64,068 |
|
|
$ |
62,945 |
|
|
$ |
62,468 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.8 |
% |
|
|
13.2 |
% |
|
|
13.9 |
% |
Percentage of total revenue |
|
|
38.7 |
% |
|
|
40.0 |
% |
|
|
42.7 |
% |
Same store results (1): |
|
|
|
|
|
|
|
|
|
|||
Net finance receivables at period-end |
|
$ |
2,000,665 |
|
|
$ |
1,915,667 |
|
|
$ |
1,815,187 |
|
Net finance receivable growth rate |
|
|
9.9 |
% |
|
|
8.1 |
% |
|
|
3.7 |
% |
Number of branches in calculation |
|
|
333 |
|
|
|
335 |
|
|
|
337 |
|
(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 |
|
|||||||||||||||||||||
|
|
3Q 25 |
|
|
2Q 25 |
|
|
3Q 24 |
|
|||||||||||||||
Allowance for credit losses |
|
$ |
212,000 |
|
|
|
10.3 |
% |
|
$ |
202,800 |
|
|
|
10.3 |
% |
|
$ |
192,100 |
|
|
|
10.6 |
% |
|
|
|
1,740,356 |
|
|
|
84.8 |
% |
|
|
1,672,027 |
|
|
|
85.3 |
% |
|
|
1,529,171 |
|
|
|
84.1 |
% |
1 to 29 days past due |
|
|
168,380 |
|
|
|
8.2 |
% |
|
|
158,951 |
|
|
|
8.1 |
% |
|
|
164,568 |
|
|
|
9.0 |
% |
Delinquent accounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
30 to 59 days |
|
|
40,100 |
|
|
|
1.9 |
% |
|
|
35,362 |
|
|
|
1.8 |
% |
|
|
35,300 |
|
|
|
1.9 |
% |
60 to 89 days |
|
|
31,914 |
|
|
|
1.6 |
% |
|
|
28,949 |
|
|
|
1.5 |
% |
|
|
27,704 |
|
|
|
1.5 |
% |
90 to 119 days |
|
|
26,304 |
|
|
|
1.2 |
% |
|
|
22,348 |
|
|
|
1.1 |
% |
|
|
23,964 |
|
|
|
1.4 |
% |
120 to 149 days |
|
|
23,722 |
|
|
|
1.2 |
% |
|
|
21,625 |
|
|
|
1.1 |
% |
|
|
22,544 |
|
|
|
1.2 |
% |
150 to 179 days |
|
|
22,241 |
|
|
|
1.1 |
% |
|
|
21,102 |
|
|
|
1.1 |
% |
|
|
16,505 |
|
|
|
0.9 |
% |
Total delinquency |
|
$ |
144,281 |
|
|
|
7.0 |
% |
|
$ |
129,386 |
|
|
|
6.6 |
% |
|
$ |
126,017 |
|
|
|
6.9 |
% |
Total net finance receivables |
|
$ |
2,053,017 |
|
|
|
100.0 |
% |
|
$ |
1,960,364 |
|
|
|
100.0 |
% |
|
$ |
1,819,756 |
|
|
|
100.0 |
% |
1 day and over past due |
|
$ |
312,661 |
|
|
|
15.2 |
% |
|
$ |
288,337 |
|
|
|
14.7 |
% |
|
$ |
290,585 |
|
|
|
15.9 |
% |
|
|
Contractual Delinquency by Product |
|
|||||||||||||||||||||
|
|
3Q 25 |
|
|
2Q 25 |
|
|
3Q 24 |
|
|||||||||||||||
Large loans |
|
$ |
85,865 |
|
|
|
5.7 |
% |
|
$ |
76,690 |
|
|
|
5.4 |
% |
|
$ |
76,435 |
|
|
|
5.9 |
% |
Small loans |
|
|
58,416 |
|
|
|
10.8 |
% |
|
|
52,696 |
|
|
|
9.6 |
% |
|
|
49,582 |
|
|
|
9.4 |
% |
Total |
|
$ |
144,281 |
|
|
|
7.0 |
% |
|
$ |
129,386 |
|
|
|
6.6 |
% |
|
$ |
126,017 |
|
|
|
6.9 |
% |
|
Income Statement Quarterly Trend |
|
|||||||||||||||||||
|
3Q 24 |
|
4Q 24 |
|
1Q 25 |
|
2Q 25 |
|
3Q 25 |
|
QoQ $
|
|
YoY $
|
|
|||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest and fee income |
$ |
133,932 |
|
$ |
138,246 |
|
$ |
136,553 |
|
$ |
140,695 |
|
$ |
148,672 |
|
$ |
7,977 |
|
$ |
14,740 |
|
Insurance income, net |
|
7,422 |
|
|
11,792 |
|
|
11,297 |
|
|
11,499 |
|
|
11,391 |
|
|
(108 |
) |
|
3,969 |
|
Other income |
|
4,984 |
|
|
4,794 |
|
|
5,117 |
|
|
5,248 |
|
|
5,424 |
|
|
176 |
|
|
440 |
|
Total revenue |
|
146,338 |
|
|
154,832 |
|
|
152,967 |
|
|
157,442 |
|
|
165,487 |
|
|
8,045 |
|
|
19,149 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Provision for credit losses |
|
54,349 |
|
|
57,626 |
|
|
57,992 |
|
|
60,587 |
|
|
60,474 |
|
|
113 |
|
|
(6,125 |
) |
|
|
38,323 |
|
|
40,549 |
|
|
41,142 |
|
|
38,584 |
|
|
39,517 |
|
|
(933 |
) |
|
(1,194 |
) |
Occupancy |
|
6,551 |
|
|
6,748 |
|
|
6,906 |
|
|
6,911 |
|
|
7,160 |
|
|
(249 |
) |
|
(609 |
) |
Marketing |
|
5,078 |
|
|
4,777 |
|
|
5,406 |
|
|
5,059 |
|
|
4,212 |
|
|
847 |
|
|
866 |
|
Other |
|
12,516 |
|
|
12,572 |
|
|
12,589 |
|
|
12,391 |
|
|
13,179 |
|
|
(788 |
) |
|
(663 |
) |
Total general and administrative |
|
62,468 |
|
|
64,646 |
|
|
66,043 |
|
|
62,945 |
|
|
64,068 |
|
|
(1,123 |
) |
|
(1,600 |
) |
|
|
19,356 |
|
|
19,805 |
|
|
19,771 |
|
|
20,426 |
|
|
21,971 |
|
|
(1,545 |
) |
|
(2,615 |
) |
Income before income taxes |
|
10,165 |
|
|
12,755 |
|
|
9,161 |
|
|
13,484 |
|
|
18,974 |
|
|
5,490 |
|
|
8,809 |
|
Income taxes |
|
2,502 |
|
|
2,841 |
|
|
2,154 |
|
|
3,344 |
|
|
4,618 |
|
|
(1,274 |
) |
|
(2,116 |
) |
Net income |
$ |
7,663 |
|
$ |
9,914 |
|
$ |
7,007 |
|
$ |
10,140 |
|
$ |
14,356 |
|
$ |
4,216 |
|
$ |
6,693 |
|
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
0.79 |
|
$ |
1.02 |
|
$ |
0.73 |
|
$ |
1.07 |
|
$ |
1.53 |
|
$ |
0.46 |
|
$ |
0.74 |
|
Diluted |
$ |
0.76 |
|
$ |
0.98 |
|
$ |
0.70 |
|
$ |
1.03 |
|
$ |
1.42 |
|
$ |
0.39 |
|
$ |
0.66 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
9,683 |
|
|
9,691 |
|
|
9,610 |
|
|
9,504 |
|
|
9,370 |
|
|
134 |
|
|
313 |
|
Diluted |
|
10,090 |
|
|
10,128 |
|
|
10,025 |
|
|
9,843 |
|
|
10,133 |
|
|
(290 |
) |
|
(43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Balance Sheet & Other Key Metrics Quarterly Trends |
|
|||||||||||||||||||
|
3Q 24 |
|
4Q 24 |
|
1Q 25 |
|
2Q 25 |
|
3Q 25 |
|
QoQ $
|
|
YoY $
|
|
|||||||
Total assets |
$ |
1,821,831 |
|
$ |
1,909,109 |
|
$ |
1,900,683 |
|
$ |
1,967,131 |
|
$ |
2,028,266 |
|
$ |
61,135 |
|
$ |
206,435 |
|
Net finance receivables |
$ |
1,819,756 |
|
$ |
1,892,535 |
|
$ |
1,890,351 |
|
$ |
1,960,364 |
|
$ |
2,053,017 |
|
$ |
92,653 |
|
$ |
233,261 |
|
Allowance for credit losses |
$ |
192,100 |
|
$ |
199,500 |
|
$ |
199,100 |
|
$ |
202,800 |
|
$ |
212,000 |
|
$ |
9,200 |
|
$ |
19,900 |
|
Debt |
$ |
1,395,892 |
|
$ |
1,478,336 |
|
$ |
1,477,860 |
|
$ |
1,509,133 |
|
$ |
1,581,992 |
|
$ |
72,859 |
|
$ |
186,100 |
|
Interest and fee yield (annualized) |
|
29.9 |
% |
|
29.8 |
% |
|
28.9 |
% |
|
29.4 |
% |
|
29.7 |
% |
|
0.3 |
% |
|
(0.2 |
)% |
Efficiency ratio (1) |
|
42.7 |
% |
|
41.8 |
% |
|
43.2 |
% |
|
40.0 |
% |
|
38.7 |
% |
|
(1.3 |
)% |
|
(4.0 |
)% |
Operating expense ratio (2) |
|
13.9 |
% |
|
14.0 |
% |
|
14.0 |
% |
|
13.2 |
% |
|
12.8 |
% |
|
(0.4 |
)% |
|
(1.1 |
)% |
Delinquency rate (3) |
|
6.9 |
% |
|
7.7 |
% |
|
7.1 |
% |
|
6.6 |
% |
|
7.0 |
% |
|
0.4 |
% |
|
0.1 |
% |
Net credit loss rate (4) |
|
10.6 |
% |
|
10.8 |
% |
|
12.4 |
% |
|
11.9 |
% |
|
10.2 |
% |
|
(1.7 |
)% |
|
(0.4 |
)% |
Book value per share |
$ |
34.72 |
|
$ |
35.67 |
|
$ |
35.48 |
|
$ |
36.43 |
|
$ |
37.94 |
|
$ |
1.51 |
|
$ |
3.22 |
|
(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) |
Delinquent loans outstanding as a percentage of ending net finance receivables. |
|
(4) |
Annualized net credit losses as a percentage of average net finance receivables. |
|
|
Average Net Finance Receivables |
|
|||||||||||||
|
|
YTD 25 |
|
|
YTD 24 |
|
|
YoY $
|
|
|
YoY %
|
|
||||
Large loans |
|
$ |
1,391,470 |
|
|
$ |
1,266,363 |
|
|
$ |
125,107 |
|
|
|
9.9 |
% |
Small loans |
|
|
543,402 |
|
|
|
500,508 |
|
|
|
42,894 |
|
|
|
8.6 |
% |
Total |
|
$ |
1,934,872 |
|
|
$ |
1,766,871 |
|
|
$ |
168,001 |
|
|
|
9.5 |
% |
|
|
Revenue Yields (1) |
|
|||||||||
|
|
YTD 25 |
|
|
YTD 24 |
|
|
YoY
|
|
|||
Large loans |
|
|
26.6 |
% |
|
|
26.3 |
% |
|
|
0.3 |
% |
Small loans |
|
|
36.4 |
% |
|
|
37.6 |
% |
|
|
(1.2 |
)% |
Total interest and fee yield |
|
|
29.4 |
% |
|
|
29.5 |
% |
|
|
(0.1 |
)% |
Total revenue yield |
|
|
32.8 |
% |
|
|
32.7 |
% |
|
|
0.1 |
% |
(1) |
Annualized as a percentage of average net finance receivables. |
|
|
Components of Increase in Interest and Fee Income |
|
|||||||||||||
|
|
YTD 25 Compared to YTD 24 |
|
|||||||||||||
|
|
Increase (Decrease) |
|
|||||||||||||
|
|
Volume |
|
|
Rate |
|
|
Volume & Rate |
|
|
Total |
|
||||
Large loans |
|
$ |
24,664 |
|
|
$ |
3,140 |
|
|
$ |
310 |
|
|
$ |
28,114 |
|
Small loans |
|
|
12,083 |
|
|
|
(4,537 |
) |
|
|
(388 |
) |
|
|
7,158 |
|
Product mix |
|
|
397 |
|
|
|
(313 |
) |
|
|
(84 |
) |
|
|
— |
|
Total |
|
$ |
37,144 |
|
|
$ |
(1,710 |
) |
|
$ |
(162 |
) |
|
$ |
35,272 |
|
|
|
Loans Originated (1) |
|
|||||||||||||
|
|
YTD 25 |
|
|
YTD 24 |
|
|
YTD $
|
|
|
YTD %
|
|
||||
Large loans |
|
$ |
941,337 |
|
|
$ |
691,416 |
|
|
$ |
249,921 |
|
|
|
36.1 |
% |
Small loans |
|
|
483,377 |
|
|
|
487,195 |
|
|
|
(3,818 |
) |
|
|
(0.8 |
)% |
Total |
|
$ |
1,424,714 |
|
|
$ |
1,178,611 |
|
|
$ |
246,103 |
|
|
|
20.9 |
% |
(1) |
Represents the principal balance of loan originations and refinancings. |
|
|
Other Key Metrics |
|
|||||
|
|
YTD 25 |
|
|
YTD 24 |
|
||
Net credit losses |
|
$ |
166,553 |
|
|
$ |
149,874 |
|
Percentage of average net finance receivables (annualized) |
|
|
11.5 |
% |
|
|
11.3 |
% |
Provision for credit losses |
|
$ |
179,053 |
|
|
$ |
154,574 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.3 |
% |
|
|
11.7 |
% |
Percentage of total revenue |
|
|
37.6 |
% |
|
|
35.6 |
% |
General and administrative expenses |
|
$ |
193,056 |
|
|
$ |
183,052 |
|
Percentage of average net finance receivables (annualized) |
|
|
13.3 |
% |
|
|
13.8 |
% |
Percentage of total revenue |
|
|
40.6 |
% |
|
|
42.2 |
% |
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.
|
|
3Q 25 |
|
|
Debt |
|
$ |
1,581,992 |
|
|
|
|
371,918 |
|
Less: Intangible assets |
|
|
30,385 |
|
Tangible equity (non-GAAP) |
|
$ |
341,533 |
|
|
|
|
4.3 |
x |
Funded debt-to-tangible equity ratio (non-GAAP) |
|
|
4.6 |
x |
View source version on businesswire.com: https://www.businesswire.com/news/home/20251105904653/en/
Investor Relations
Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
Source: Regional Management Corp.
