Regional Managment ( (RM) ) has released its Q4 earnings. Here is a breakdown of the information Regional Managment presented to its investors.
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Regional Management Corp. is a diversified consumer finance company providing installment loan products primarily to customers with limited access to credit across 19 states in the United States. The company reported a strong fourth quarter in 2024 with net income of $9.9 million and earnings per share of 98 cents, marking a significant improvement from the previous year. The company’s loan portfolio grew by $73 million sequentially, reaching nearly $1.9 billion, generating record quarterly revenue of $155 million. The financial performance was bolstered by increased pricing, a shift to higher-margin loans, and improved credit performance.
The key financial metrics for the fourth quarter of 2024 show a 9.3% increase in total revenue to $154.8 million, driven by growth in average net finance receivables and higher interest yields. The portfolio saw a mix shift, with small loan finance receivables increasing by 12.4% and auto-secured loans by 33.8%. Credit performance metrics improved with a decrease in the provision for credit losses by 16.3% and a significant drop in net credit loss rates. The company maintained a steady operational expense ratio while investing in growth, achieving a 30 basis point improvement compared to the prior year.
Additionally, the company repurchased over 104,000 shares of common stock under its $30 million stock repurchase program and declared a dividend of $0.30 per share for the first quarter of 2025. Regional Management Corp. has a solid liquidity position with unused capacity to fund future growth and significant available liquidity.
Looking forward to 2025, Regional Management Corp. is optimistic about accelerating growth, expecting at least 10% portfolio growth and improved net income results, supported by a stable macroeconomic environment and disciplined portfolio management.
