GREENVILLE, S.C.--(BUSINESS WIRE)--Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the fourth quarter ended December 31, 2024.
"We are very pleased with how our team and company performed in the fourth quarter," said Robert W. Beck, President and Chief Executive Officer of Regional Management Corp. "We generated strong bottom-line results of $9.9 million of net income and 98 cents of diluted earnings per share, a sharp improvement from the prior-year period. We increased our investment in growth and grew our portfolio by $73 million sequentially, or 16.0% on an annualized basis, to nearly $1.9 billion, an all-time high for our company. The portfolio generated record quarterly revenue of $155 million, up 9.3% year-over-year. Our fourth quarter total revenue yield was 33.4%, 110 basis points higher than the prior-year period from increased pricing, a mix shift to higher-margin loans, and improving credit performance."
"The loans in our front book continue to perform in line with our expectations and are delivering at lower loss levels than our stressed back book vintages," added Mr. Beck. "Our 30+ day delinquency and net credit loss rates improved 10 basis points and 110 basis points, respectively, compared to the prior-year period after adjusting for the impacts of the fourth quarter 2023 special loan sale. We have also held G&A expenses in check while investing in growth, allowing us to leverage our improved scale to increase our returns. Our fourth quarter operating expense ratio was 14.0%, a 30 basis point improvement from the prior-year period after adjusting for the fourth quarter 2023 restructuring."
"The fourth quarter capped a strong 2024 in which we improved our results from the prior year on nearly all lines," continued Mr. Beck. "Looking ahead to 2025, we expect to accelerate our growth due to our confidence in our credit performance, improving consumer health, and strengthening macroeconomic conditions. Assuming no change in our expectations for the economy, we are committed to both a minimum of 10% portfolio growth and a meaningful improvement to our net income results in 2025. Over the long-term, we expect that our returns will continue to normalize with the benefits of a stable macroeconomic environment, further scale through disciplined portfolio growth, a well-balanced product mix, and prudent expense management."
Fourth Quarter 2024 Highlights
- Net income for the fourth quarter of 2024 was $9.9 million and diluted earnings per share was $0.98.
- Net income reflects the impact of $72.8 million of sequential portfolio growth in the quarter, which required a $7.7 million provision for credit losses, or $6.0 million after tax. The company is required to reserve for expected lifetime credit losses at origination of each loan, while the revenue benefits are recognized over the life of the loan, highlighting the impact of portfolio growth on our income statement.
- Record net finance receivables as of December 31, 2024 of $1.9 billion, an increase of $121.1 million, or 6.8%, from the prior-year period, were driven by the strong execution of our barbell strategy which balances our higher-quality, auto-secured products with our higher-margin small loan portfolio.
- Large loan net finance receivables of $1.3 billion increased $62.6 million, or 4.9%, from the prior-year period and represented 70.6% of the total loan portfolio, compared to 71.9% in the prior-year period.
- Small loan net finance receivables of $554.7 million increased $61.2 million, or 12.4%, from the prior-year period and represented 29.3% of the total loan portfolio, compared to 27.9% in the prior-year period.
- Our auto-secured loan portfolio increased by $52.2 million, or 33.8%, from the prior-year period to $206.6 million. The auto-secured loan portfolio represented 10.9% of the total loan portfolio, compared to 8.7% in the prior-year period.
- Net finance receivables with annual percentage rates (APRs) above 36% increased to 18.5% of the portfolio from 15.7% in the prior-year period, driven by the increase in the higher-margin small loan portfolio.
- Customer accounts increased by 6.9% from the prior-year period.
- Record total revenue for the fourth quarter of 2024 of $154.8 million, an increase of $13.2 million, or 9.3%, from the prior-year period, primarily due to growth in average net finance receivables and 100 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.
- Large loan interest and fee yield increased by 80 basis points, while the interest and fee yield of the small loan portfolio increased by 110 basis points.
- Total revenue yield increased 80 basis points sequentially and 110 basis points year-over-year.
- Provision for credit losses for the fourth quarter of 2024 was $57.6 million, a decrease of $11.3 million, or 16.3%, from the prior-year period, driven by maintaining a tight credit box.
- Annualized net credit losses as a percentage of average net finance receivables for the fourth quarter of 2024 were 10.8%, a 430 basis point improvement compared to 15.1% in the prior-year period. The fourth quarter 2024 net credit loss rate is inclusive of an estimated 20 basis point increase from year-over-year growth of the higher-rate small loan portfolio. The fourth quarter 2023 net credit loss rate is inclusive of a 320 basis point impact from $13.9 million of accelerated net credit losses from the sale of certain non-performing loans.
- The allowance for credit losses was $199.5 million as of December 31, 2024, or 10.5% of net finance receivables, a 10 basis point improvement sequentially from 10.6%. The provision for credit losses for the fourth quarter of 2024 included an allowance for credit losses increase of $7.4 million, primarily related to portfolio growth occurring during the fourth quarter of 2024.
- As of December 31, 2024, 30+ day contractual delinquencies totaled $145.8 million, or 7.7% of net finance receivables, an 80 basis point increase sequentially and from the prior-year period. The fourth quarter 2024 delinquency rate is inclusive of an estimated 20 basis point impact from year-over-year growth of the higher-rate small loan portfolio, while the prior-year period delinquency rate is inclusive of a 90 basis point benefit from the sale of certain non-performing loans.
- The delinquency rate of the large loan portfolio was 6.6% as of the end of the fourth quarter of 2024, a 30 basis point increase from the prior-year period. The prior-year period delinquency rate is inclusive of a 60 basis point benefit from the sale of certain non-performing loans.
- The delinquency rate of the small loan portfolio was 10.4% as of the end of the fourth quarter of 2024, a 190 basis point increase from the prior-year period. The fourth quarter delinquency rate is inclusive of an estimated 130 basis point impact from year-over-year growth of the higher-rate small loan portfolio, while the prior-year period delinquency rate is inclusive of a 150 basis point benefit from the sale of certain non-performing loans.
- General and administrative expenses for the fourth quarter of 2024 were $64.6 million, a decrease of $0.2 million, or 0.2%, from the prior-year period. The operating expense ratio (annualized general and administrative expenses as a percentage of average net finance receivables) for the fourth quarter of 2024 was 14.0%, an 80 basis point improvement from 14.8% in the prior-year period. The prior-year period included $2.0 million of restructuring expenses, which increased the prior-year period operating expense ratio by 50 basis points.
- In the fourth quarter of 2024, the company repurchased 104,542 shares of its common stock at a weighted-average price of $33.83 per share under the company's $30 million stock repurchase program.
First Quarter 2025 Dividend
The company's Board of Directors has declared a dividend of $0.30 per common share for the first quarter of 2025. The dividend will be paid on March 13, 2025 to shareholders of record as of the close of business on February 20, 2025. 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 December 31, 2024, the company had net finance receivables of $1.9 billion and debt of $1.5 billion. The debt consisted of:
- $219.3 million on the company's $355 million senior revolving credit facility,
- $96.6 million on the company's aggregate $425 million revolving warehouse credit facilities, and
- $1.2 billion through the company's asset-backed securitizations.
As of December 31, 2024, the company's unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was $466 million, or 59.8%, and the company had available liquidity of $136.9 million, including unrestricted cash on hand and immediate availability to draw down cash from its revolving credit facilities. As of December 31, 2024, the company's fixed-rate debt as a percentage of total debt was 79%, with a weighted-average coupon of 4.1% and a weighted-average revolving duration of 1.3 years.
In November, the company closed a $250 million asset-backed securitization transaction at a weighted-average coupon of 5.34%, an 85 basis point improvement over the company's second quarter 2024 securitization transaction. The Class A notes of the securitization received a top rating of "AAA" from Standard & Poor's and Morningstar DBRS, and the company experienced significant demand across all classes of notes, including from new investors, again demonstrating the strength of its ABS platform.
The company had a funded debt-to-equity ratio of 4.1 to 1.0 and a stockholders' equity ratio of 18.7%, each as of December 31, 2024. On a non-GAAP basis, the company had a funded debt-to-tangible equity ratio of 4.4 to 1.0, as of December 31, 2024. 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 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) | |||||||||||||||||||||||
4Q 24 | 4Q 23 | $ | % | FY 24 | FY 23 | $ | % | |||||||||||||||||
Revenue | ||||||||||||||||||||||||
Interest and fee income | $ | 138,246 | $ | 126,190 | $ | 12,056 | 9.6 | % | $ | 528,894 | $ | 489,698 | $ | 39,196 | 8.0 | % | ||||||||
Insurance income, net | 11,792 | 10,985 | 807 | 7.3 | % | 40,695 | 44,529 | (3,834 | ) | (8.6 | )% | |||||||||||||
Other income | 4,794 | 4,484 | 310 | 6.9 | % | 18,914 | 17,172 | 1,742 | 10.1 | % | ||||||||||||||
Total revenue | 154,832 | 141,659 | 13,173 | 9.3 | % | 588,503 | 551,399 | 37,104 | 6.7 | % | ||||||||||||||
Expenses | ||||||||||||||||||||||||
Provision for credit losses | 57,626 | 68,885 | 11,259 | 16.3 | % | 212,200 | 220,034 | 7,834 | 3.6 | % | ||||||||||||||
Personnel | 40,549 | 42,024 | 1,475 | 3.5 | % | 153,789 | 156,872 | 3,083 | 2.0 | % | ||||||||||||||
Occupancy | 6,748 | 6,268 | (480 | ) | (7.7 | )% | 25,823 | 25,029 | (794 | ) | (3.2 | )% | ||||||||||||
Marketing | 4,777 | 4,474 | (303 | ) | (6.8 | )% | 19,006 | 15,774 | (3,232 | ) | (20.5 | )% | ||||||||||||
Other | 12,572 | 12,030 | (542 | ) | (4.5 | )% | 49,080 | 45,444 | (3,636 | ) | (8.0 | )% | ||||||||||||
Total general and administrative | 64,646 | 64,796 | 150 | 0.2 | % | 247,698 | 243,119 | (4,579 | ) | (1.9 | )% | |||||||||||||
Interest expense | 19,805 | 17,510 | (2,295 | ) | (13.1 | )% | 74,530 | 67,463 | (7,067 | ) | (10.5 | )% | ||||||||||||
Income (loss) before income taxes | 12,755 | (9,532 | ) | 22,287 | 233.8 | % | 54,075 | 20,783 | 33,292 | 160.2 | % | |||||||||||||
Income taxes | 2,841 | (1,958 | ) | (4,799 | ) | (245.1 | )% | 12,848 | 4,825 | (8,023 | ) | (166.3 | )% | |||||||||||
Net income (loss) | $ | 9,914 | $ | (7,574 | ) | $ | 17,488 | 230.9 | % | $ | 41,227 | $ | 15,958 | $ | 25,269 | 158.3 | % | |||||||
Net income (loss) per common share: | ||||||||||||||||||||||||
Basic | $ | 1.02 | $ | (0.80 | ) | $ | 1.82 | 227.5 | % | $ | 4.28 | $ | 1.70 | $ | 2.58 | 151.8 | % | |||||||
Diluted | $ | 0.98 | $ | (0.80 | ) | $ | 1.78 | 222.5 | % | $ | 4.14 | $ | 1.66 | $ | 2.48 | 149.4 | % | |||||||
Weighted-average common shares outstanding: | ||||||||||||||||||||||||
Basic | 9,691 | 9,437 | (254 | ) | (2.7 | )% | 9,640 | 9,398 | (242 | ) | (2.6 | )% | ||||||||||||
Diluted | 10,128 | 9,437 | (691 | ) | (7.3 | )% | 9,957 | 9,593 | (364 | ) | (3.8 | )% | ||||||||||||
Return on average assets (annualized) | 2.1 | % | (1.7 | )% | 2.3 | % | 0.9 | % | ||||||||||||||||
Return on average equity (annualized) | 11.1 | % | (9.3 | )% | 12.0 | % | 5.0 | % | ||||||||||||||||
Regional Management Corp. and Subsidiaries Consolidated Balance Sheets (Unaudited) (dollars in thousands, except par value amounts) | ||||||||||||||||
Increase (Decrease) | ||||||||||||||||
4Q 24 | 4Q 23 | $ | % | |||||||||||||
Assets | ||||||||||||||||
Cash | $ | 3,951 | $ | 4,509 | $ | (558 | ) | (12.4 | )% | |||||||
Net finance receivables | 1,892,535 | 1,771,410 | 121,125 | 6.8 | % | |||||||||||
Unearned insurance premiums | (48,068 | ) | (47,892 | ) | (176 | ) | (0.4 | )% | ||||||||
Allowance for credit losses | (199,500 | ) | (187,400 | ) | (12,100 | ) | (6.5 | )% | ||||||||
Net finance receivables, less unearned insurance premiums and allowance for credit losses | 1,644,967 | 1,536,118 | 108,849 | 7.1 | % | |||||||||||
Restricted cash | 131,684 | 124,164 | 7,520 | 6.1 | % | |||||||||||
Lease assets | 38,442 | 34,303 | 4,139 | 12.1 | % | |||||||||||
Intangible assets | 24,524 | 15,846 | 8,678 | 54.8 | % | |||||||||||
Restricted available-for-sale investments | 21,712 | 22,740 | (1,028 | ) | (4.5 | )% | ||||||||||
Property and equipment | 13,677 | 13,787 | (110 | ) | (0.8 | )% | ||||||||||
Deferred tax assets, net | 9,286 | 13,641 | (4,355 | ) | (31.9 | )% | ||||||||||
Other assets | 20,866 | 29,419 | (8,553 | ) | (29.1 | )% | ||||||||||
Total assets | $ | 1,909,109 | $ | 1,794,527 | $ | 114,582 | 6.4 | % | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Liabilities: | ||||||||||||||||
Debt | $ | 1,478,336 | $ | 1,399,814 | $ | 78,522 | 5.6 | % | ||||||||
Unamortized debt issuance costs | (6,338 | ) | (4,578 | ) | (1,760 | ) | (38.4 | )% | ||||||||
Net debt | 1,471,998 | 1,395,236 | 76,762 | 5.5 | % | |||||||||||
Lease liabilities | 40,579 | 36,576 | 4,003 | 10.9 | % | |||||||||||
Accounts payable and accrued expenses | 39,454 | 40,442 | (988 | ) | (2.4 | )% | ||||||||||
Total liabilities | 1,552,031 | 1,472,254 | 79,777 | 5.4 | % | |||||||||||
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, 14,921 shares issued and 10,010 shares outstanding at December 31, 2024 and 14,566 shares issued and 9,759 shares outstanding at December 31, 2023) | 1,492 | 1,457 | 35 | 2.4 | % | |||||||||||
Additional paid-in capital | 130,725 | 121,752 | 8,973 | 7.4 | % | |||||||||||
Retained earnings | 378,482 | 349,579 | 28,903 | 8.3 | % | |||||||||||
Accumulated other comprehensive income (loss) | 62 | (372 | ) | 434 | 116.7 | % | ||||||||||
Treasury stock (4,911 shares at December 31, 2024 and 4,807 shares at December 31, 2023) | (153,683 | ) | (150,143 | ) | (3,540 | ) | (2.4 | )% | ||||||||
Total stockholders' equity | 357,078 | 322,273 | 34,805 | 10.8 | % | |||||||||||
Total liabilities and stockholders' equity | $ | 1,909,109 | $ | 1,794,527 | $ | 114,582 | 6.4 | % | ||||||||
Regional Management Corp. and Subsidiaries Selected Financial Data (Unaudited) (dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||
Net Finance Receivables | ||||||||||||||||||||||||||||
4Q 24 | 3Q 24 | QoQ $
| QoQ %
| 4Q 23 | YoY $
| YoY %
| ||||||||||||||||||||||
Large loans | $ | 1,336,780 | $ | 1,293,410 | $ | 43,370 | 3.4 | % | $ | 1,274,137 | $ | 62,643 | 4.9 | % | ||||||||||||||
Small loans | 554,686 | 524,826 | 29,860 | 5.7 | % | 493,473 |
| 61,213 | 12.4 | % | ||||||||||||||||||
Retail loans | 1,069 | 1,520 | (451 | ) | (29.7 | )% | 3,800 | (2,731 | ) | (71.9 | )% | |||||||||||||||||
Total net finance receivables | $ | 1,892,535 | $ | 1,819,756 | $ | 72,779 | 4.0 | % | $ | 1,771,410 | $ | 121,125 | 6.8 | % | ||||||||||||||
Number of branches at period end | 344 | 340 | 4 | 1.2 | % | 346 | (2 | ) | (0.6 | )% | ||||||||||||||||||
Net finance receivables per branch | $ | 5,502 | $ | 5,352 | $ | 150 | 2.8 | % | $ | 5,120 | $ | 382 | 7.5 | % | ||||||||||||||
Averages and Yields | ||||||||||||||||||||||||
4Q 24 | 3Q 24 | 4Q 23 | ||||||||||||||||||||||
Average Net Finance Receivables | Average
| Average Net Finance Receivables | Average
| Average Net Finance Receivables | Average
| |||||||||||||||||||
Large loans | $ | 1,315,375 | 26.8 | % | $ | 1,279,720 | 26.7 | % | $ | 1,273,268 | 26.0 | % | ||||||||||||
Small loans | 536,163 | 37.4 | % | 511,294 | 37.8 | % | 477,615 | 36.3 | % | |||||||||||||||
Retail loans | 1,300 | 15.4 | % | 1,795 | 16.3 | % | 4,356 | 16.3 | % | |||||||||||||||
Total interest and fee yield | $ | 1,852,838 | 29.8 | % | $ | 1,792,809 | 29.9 | % | $ | 1,755,239 | 28.8 | % | ||||||||||||
Total revenue yield | $ | 1,852,838 | 33.4 | % | $ | 1,792,809 | 32.6 | % | $ | 1,755,239 | 32.3 | % | ||||||||||||
(1) Annualized interest and fee income as a percentage of average net finance receivables. | ||||||||||||||||||||||||
Components of Increase in Interest and Fee Income | ||||||||||||||||
4Q 24 Compared to 4Q 23 | ||||||||||||||||
Increase (Decrease) | ||||||||||||||||
Volume | Rate | Volume & Rate | Total | |||||||||||||
Large loans | $ | 2,733 | $ | 2,599 | $ | 86 | $ | 5,418 | ||||||||
Small loans | 5,317 | 1,290 | 158 | 6,765 | ||||||||||||
Retail loans | (124 | ) | (9 | ) | 6 | (127 | ) | |||||||||
Product mix | (909 | ) | 894 | 15 | - | |||||||||||
Total increase in interest and fee income | $ | 7,017 | $ | 4,774 | $ | 265 | $ | 12,056 | ||||||||
Loans Originated (1) | ||||||||||||||||||||||||||||
4Q 24 | 3Q 24 | QoQ $
| QoQ %
| 4Q 23 | YoY $
| YoY %
| ||||||||||||||||||||||
Large loans | $ | 281,632 | $ | 251,563 | $ | 30,069 | 12.0 | % | $ | 233,415 | $ | 48,217 | 20.7 | % | ||||||||||||||
Small loans | 194,268 | 174,632 | 19,636 | 11.2 | % | 174,394 | 19,874 | 11.4 | % | |||||||||||||||||||
Total loans originated | $ | 475,900 | $ | 426,195 | $ | 49,705 | 11.7 | % | $ | 407,809 | $ | 68,091 | 16.7 | % | ||||||||||||||
(1) Represents the principal balance of loan originations and refinancings. | ||||||||||||||||||||||||||||
Other Key Metrics | ||||||||||||
4Q 24 | 3Q 24 | 4Q 23 | ||||||||||
Net credit losses | $ | 50,226 | $ | 47,649 | $ | 66,385 | ||||||
Percentage of average net finance receivables (annualized) | 10.8 | % | 10.6 | % | 15.1 | % | ||||||
Provision for credit losses | $ | 57,626 | $ | 54,349 | $ | 68,885 | ||||||
Percentage of average net finance receivables (annualized) | 12.4 | % | 12.1 | % | 15.7 | % | ||||||
Percentage of total revenue | 37.2 | % | 37.1 | % | 48.6 | % | ||||||
General and administrative expenses | $ | 64,646 | $ | 62,468 | $ | 64,796 | ||||||
Percentage of average net finance receivables (annualized) | 14.0 | % | 13.9 | % | 14.8 | % | ||||||
Percentage of total revenue | 41.8 | % | 42.7 | % | 45.7 | % | ||||||
Same store results (1): | ||||||||||||
Net finance receivables at period-end | $ | 1,880,251 | $ | 1,815,187 | $ | 1,718,367 | ||||||
Net finance receivable growth rate | 6.1 | % | 3.7 | % | 1.5 | % | ||||||
Number of branches in calculation | 337 | 337 | 333 | |||||||||
(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 | ||||||||||||||||||||||||
4Q 24 | 3Q 24 | 4Q 23 | ||||||||||||||||||||||
Allowance for credit losses | $ | 199,500 | 10.5 | % | $ | 192,100 | 10.6 | % | $ | 187,400 | 10.6 | % | ||||||||||||
| 1,590,381 | 84.0 | % | 1,529,171 | 84.1 | % | 1,493,341 | 84.3 | % | |||||||||||||||
1 to 29 days past due | 156,312 | 8.3 | % | 164,568 | 9.0 | % | 155,196 | 8.8 | % | |||||||||||||||
Delinquent accounts: | ||||||||||||||||||||||||
30 to 59 days | 36,948 | 1.9 | % | 35,300 | 1.9 | % | 34,756 | 1.9 | % | |||||||||||||||
60 to 89 days | 35,242 | 1.9 | % | 27,704 | 1.5 | % | 31,212 | 1.8 | % | |||||||||||||||
90 to 119 days | 28,085 | 1.5 | % | 23,964 | 1.4 | % | 27,107 | 1.5 | % | |||||||||||||||
120 to 149 days | 23,987 | 1.3 | % | 22,544 | 1.2 | % | 15,317 | 0.9 | % | |||||||||||||||
150 to 179 days | 21,580 | 1.1 | % | 16,505 | 0.9 | % | 14,481 | 0.8 | % | |||||||||||||||
Total contractual delinquency | $ | 145,842 | 7.7 | % | $ | 126,017 | 6.9 | % | $ | 122,873 | 6.9 | % | ||||||||||||
Total net finance receivables | $ | 1,892,535 | 100.0 | % | $ | 1,819,756 | 100.0 | % | $ | 1,771,410 | 100.0 | % | ||||||||||||
1 day and over past due | $ | 302,154 | 16.0 | % | $ | 290,585 | 15.9 | % | $ | 278,069 | 15.7 | % | ||||||||||||
Contractual Delinquency by Product | ||||||||||||||||||||||||
4Q 24 | 3Q 24 | 4Q 23 | ||||||||||||||||||||||
Large loans | $ | 88,054 | 6.6 | % | $ | 76,435 | 5.9 | % | $ | 80,136 | 6.3 | % | ||||||||||||
Small loans | 57,595 | 10.4 | % | 49,351 | 9.4 | % | 42,151 | 8.5 | % | |||||||||||||||
Retail loans | 193 | 18.1 | % | 231 | 15.2 | % | 586 | 15.4 | % | |||||||||||||||
Total contractual delinquency | $ | 145,842 | 7.7 | % | $ | 126,017 | 6.9 | % | $ | 122,873 | 6.9 | % | ||||||||||||
Income Statement Quarterly Trend | |||||||||||||||||||||
4Q 23 | 1Q 24 | 2Q 24 | 3Q 24 | 4Q 24 | QoQ $
| YoY $
| |||||||||||||||
Revenue | |||||||||||||||||||||
Interest and fee income | $ | 126,190 | $ | 128,818 | $ | 127,898 | $ | 133,932 | $ | 138,246 | $ | 4,314 | $ | 12,056 | |||||||
Insurance income, net | 10,985 | 10,974 | 10,507 | 7,422 | 11,792 | 4,370 | 807 | ||||||||||||||
Other income | 4,484 | 4,516 | 4,620 | 4,984 | 4,794 | (190 | ) | 310 | |||||||||||||
Total revenue | 141,659 | 144,308 | 143,025 | 146,338 | 154,832 | 8,494 | 13,173 | ||||||||||||||
Expenses | |||||||||||||||||||||
Provision for credit losses | 68,885 | 46,423 | 53,802 | 54,349 | 57,626 | (3,277 | ) | 11,259 | |||||||||||||
| 42,024 | 37,820 | 37,097 | 38,323 | 40,549 | (2,226 | ) | 1,475 | |||||||||||||
Occupancy | 6,268 | 6,375 | 6,149 | 6,551 | 6,748 | (197 | ) | (480 | ) | ||||||||||||
Marketing | 4,474 | 4,315 | 4,836 | 5,078 | 4,777 | 301 | (303 | ) | |||||||||||||
Other | 12,030 | 11,938 | 12,054 | 12,516 | 12,572 | (56 | ) | (542 | ) | ||||||||||||
Total general and administrative | 64,796 | 60,448 | 60,136 | 62,468 | 64,646 | (2,178 | ) | 150 | |||||||||||||
| 17,510 | 17,504 | 17,865 | 19,356 | 19,805 | (449 | ) | (2,295 | ) | ||||||||||||
Income (loss) before income taxes | (9,532 | ) | 19,933 | 11,222 | 10,165 | 12,755 | 2,590 | 22,287 | |||||||||||||
Income taxes | (1,958 | ) | 4,728 | 2,777 | 2,502 | 2,841 | (339 | ) | (4,799 | ) | |||||||||||
Net income (loss) | $ | (7,574 | ) | $ | 15,205 | $ | 8,445 | $ | 7,663 | $ | 9,914 | $ | 2,251 | $ | 17,488 | ||||||
Net income (loss) per common share: | |||||||||||||||||||||
Basic | $ | (0.80 | ) | $ | 1.59 | $ | 0.88 | $ | 0.79 | $ | 1.02 | $ | 0.23 | $ | 1.82 | ||||||
Diluted | $ | (0.80 | ) | $ | 1.56 | $ | 0.86 | $ | 0.76 | $ | 0.98 | $ | 0.22 | $ | 1.78 | ||||||
Weighted-average shares outstanding: | |||||||||||||||||||||
Basic | 9,437 | 9,569 | 9,613 | 9,683 | 9,691 | (8 | ) | (254 | ) | ||||||||||||
Diluted | 9,437 | 9,746 | 9,863 | 10,090 | 10,128 | (38 | ) | (691 | ) | ||||||||||||
Balance Sheet & Other Key Metrics Quarterly Trends | |||||||||||||||||||||
4Q 23 | 1Q 24 | 2Q 24 | 3Q 24 | 4Q 24 | QoQ $
| YoY $
| |||||||||||||||
Total assets | $ | 1,794,527 | $ | 1,756,748 | $ | 1,789,052 | $ | 1,821,831 | $ | 1,909,109 | $ | 87,278 | $ | 114,582 | |||||||
Net finance receivables | $ | 1,771,410 | $ | 1,744,286 | $ | 1,773,743 | $ | 1,819,756 | $ | 1,892,535 | $ | 72,779 | $ | 121,125 | |||||||
Allowance for credit losses | $ | 187,400 | $ | 187,100 | $ | 185,400 | $ | 192,100 | $ | 199,500 | $ | 7,400 | $ | 12,100 | |||||||
Debt | $ | 1,399,814 | $ | 1,358,795 | $ | 1,378,449 | $ | 1,395,892 | $ | 1,478,336 | $ | 82,444 | $ | 78,522 | |||||||
Interest and fee yield (annualized) | 28.8 | % | 29.3 | % | 29.3 | % | 29.9 | % | 29.8 | % | (0.1 | )% | 1.0 | % | |||||||
Efficiency ratio (1) | 45.7 | % | 41.9 | % | 42.0 | % | 42.7 | % | 41.8 | % | (0.9 | )% | (3.9 | )% | |||||||
Operating expense ratio (2) | 14.8 | % | 13.7 | % | 13.8 | % | 13.9 | % | 14.0 | % | 0.1 | % | (0.8 | )% | |||||||
30+ contractual delinquency | 6.9 | % | 7.1 | % | 6.9 | % | 6.9 | % | 7.7 | % | 0.8 | % | 0.8 | % | |||||||
Net credit loss ratio (3) | 15.1 | % | 10.6 | % | 12.7 | % | 10.6 | % | 10.8 | % | 0.2 | % | (4.3 | )% | |||||||
Book value per share | $ | 33.02 | $ | 34.10 | $ | 33.96 | $ | 34.72 | $ | 35.67 | $ | 0.95 | $ | 2.65 | |||||||
(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 | ||||||||||||||||
FY 24 | FY 23 | |||||||||||||||
Average Net Finance Receivables | Average
| Average Net Finance Receivables | Average
| |||||||||||||
Large loans | $ | 1,278,683 | 26.4 | % | $ | 1,242,529 | 26.1 | % | ||||||||
Small loans | 507,584 | 37.6 | % | 462,116 | 35.6 | % | ||||||||||
Retail loans | 2,214 | 16.1 | % | 6,522 | 17.3 | % | ||||||||||
Total interest and fee yield | $ | 1,788,481 | 29.6 | % | $ | 1,711,167 | 28.6 | % | ||||||||
Total revenue yield | $ | 1,788,481 | 32.9 | % | $ | 1,711,167 | 32.2 | % | ||||||||
Components of Increase in Interest and Fee Income | ||||||||||||||||
FY 24 Compared to FY 23 | ||||||||||||||||
Increase (Decrease) | ||||||||||||||||
Volume | Rate | Volume & Rate | Total | |||||||||||||
Large loans | $ | 9,424 | $ | 4,262 | $ | 124 | $ | 13,810 | ||||||||
Small loans | 16,202 | 9,065 | 892 | 26,159 | ||||||||||||
Retail loans | (746 | ) | (80 | ) | 53 | (773 | ) | |||||||||
Product mix | (2,754 | ) | 3,086 | (332 | ) | - | ||||||||||
Total increase in interest and fee income | $ | 22,126 | $ | 16,333 | $ | 737 | $ | 39,196 | ||||||||
Loans Originated (1) | ||||||||||||||||
FY 24 | FY 23 | FY $
| FY %
| |||||||||||||
Large loans | $ | 973,048 | $ | 928,499 | $ | 44,549 | 4.8 | % | ||||||||
Small loans | 681,463 | 606,412 | 75,051 | 12.4 | % | |||||||||||
Retail loans | - | 146 | (146 | ) | (100.0 | )% | ||||||||||
Total loans originated | $ | 1,654,511 | $ | 1,535,057 | $ | 119,454 | 7.8 | % | ||||||||
(1) Represents the principal balance of loan originations and refinancings. | ||||||||||||||||
Other Key Metrics | ||||||||
FY 24 | FY 23 | |||||||
Net credit losses | $ | 200,100 | $ | 211,434 | ||||
Percentage of average net finance receivables | 11.2 | % | 12.4 | % | ||||
Provision for credit losses | $ | 212,200 | $ | 220,034 | ||||
Percentage of average net finance receivables | 11.9 | % | 12.9 | % | ||||
Percentage of total revenue | 36.1 | % | 39.9 | % | ||||
General and administrative expenses | $ | 247,698 | $ | 243,119 | ||||
Percentage of average net finance receivables | 13.8 | % | 14.2 | % | ||||
Percentage of total revenue | 42.1 | % | 44.1 | % | ||||
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.
4Q 24 | ||||
Debt | $ | 1,478,336 | ||
| 357,078 | |||
Less: Intangible assets | 24,524 | |||
Tangible equity (non-GAAP) | $ | 332,554 | ||
| 4.1 | x | ||
Funded debt-to-tangible equity ratio (non-GAAP) | 4.4 | x | ||
Contacts
Investor Relations
Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20250205247580/en/
