Regional Management Corp. Announces Fourth Quarter 2022 Results

– Net income of $2.4 million and diluted earnings per share of $0.25 –

– Adjusted net income of $5.0 million and adjusted diluted earnings per share of $0.54 –

– 30+ day contractual delinquencies of 7.1% as of December 31, 2022

– Early indications of improved credit performance in the fourth quarter –

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, 2022.

“We closed 2022 with a solid fourth quarter, including financial results that were better than our expectations,” said Robert W. Beck, President and Chief Executive Officer of Regional Management Corp. “While net income was $2.4 million and diluted EPS was $0.25 in the quarter, we produced adjusted net income of $5.0 million and adjusted diluted EPS of $0.54. We grew our portfolio by $92 million to $1.7 billion, but continued strong demand has allowed us to be selective about the borrowers to whom we make loans, particularly as we have tightened credit since fourth quarter 2021 and intentionally slowed our growth rate throughout 2022. We finished the quarter with a 30+ day delinquency rate of 7.1%, just 10 basis points higher than 2019 pre-pandemic levels, and our first payment default rate improved to 7.1% in December, 240 basis points better than September 2022 and 170 basis points better than December 2019.”

“We also took several meaningful steps in the quarter to prepare us for the new year,” added Mr. Beck. “Late in the quarter, we disposed of a portfolio of non-performing loans at an attractive price. The sale enabled us to put some of our stressed segments behind us and re-focus more of our efforts on earlier-stage delinquent accounts, where we experienced improvements in roll rates and delinquency. We also continued to tighten credit in the quarter, particularly to new borrowers, completed the rollout of our next generation custom credit scorecard, expanded our collections capabilities, released an enhanced customer portal, and increased pricing in certain states and segments.”

“Looking ahead, we believe that the actions we took in 2022 position us to address the challenging economic environment and will enable us to respond quickly when conditions improve,” continued Mr. Beck. “In 2023, we will continue our focus on our highest confidence originations, emphasizing quality over quantity. A greater percentage of our originations will be to present and former borrowers, with new borrower lending disproportionately skewed to our newer states. As a result, we expect receivables growth to slow in 2023. As always, we will tightly manage our expenses, and we will monitor our credit performance and the macroeconomic environment closely, making further adjustments to underwriting as necessary. Our business and our customers remain resilient, and we are well-positioned to drive controlled, sustainable growth and profitability on behalf of our shareholders.”

Adjusted net income and adjusted diluted earnings per share are non-GAAP measures. Please refer to the reconciliations of non-GAAP measures to comparable GAAP measures included at the end of this press release.

Fourth Quarter 2022 Highlights

  • Net income for the fourth quarter of 2022 was $2.4 million and diluted earnings per share was $0.25, inclusive of a $2.7 million impact to net income from the sale of $27.1 million of non-performing loans. Excluding the impact of this loan sale, adjusted net income was $5.0 million and adjusted diluted earnings per share was $0.54.
  • Net finance receivables as of December 31, 2022 were $1.70 billion, an increase of $273.1 million, or 19.2%, from the prior-year period.
    • Large loan net finance receivables of $1.2 billion increased $237.5 million, or 24.5%, from the prior-year period and represented 71.1% of the total loan portfolio, compared to 68.1% in the prior-year period.
    • Small loan net finance receivables were $481.6 million, an increase of 8.2% from the prior-year period.
    • Total loan originations were $470.3 million in the fourth quarter of 2022, an increase of $36.0 million, or 8.3%, from the prior-year period.
  • Total revenue for the fourth quarter of 2022 was $132.0 million, an increase of $12.5 million, or 10.5%, from the prior-year period.
    • Interest and fee income increased $10.3 million, or 9.6%, primarily due to higher average net finance receivables.
    • Insurance income, net increased $1.3 million, or 14.1%, driven by portfolio growth.
    • Non-performing loan sale negatively impacted total revenue by $2.2 million.
  • Provision for credit losses for the fourth quarter of 2022 was $60.8 million, an increase of $29.8 million, or 96.0%, from the prior-year period. The provision for credit losses for the fourth quarter of 2022 included a reserve reduction of $11.8 million related to the sale of late-stage, non-performing loans, partially offset by incremental reserves of $9.1 million related to $91.8 million in sequential portfolio growth and $1.7 million based on the macroeconomic model.
    • Allowance for credit losses was $178.8 million as of December 31, 2022, including a $20.7 million allowance for credit losses reserve associated with estimated future macroeconomic impacts on credit losses.
  • Annualized net credit losses as a percentage of average net finance receivables for the fourth quarter of 2022 were 15.0%, compared to 6.4% in the prior-year period. Approximately 320 basis points of the fourth quarter 2022 net credit loss rate was attributable to the sale of non-performing loans.
  • As of December 31, 2022, 30+ day contractual delinquencies totaled $119.8 million, or 7.1% of net finance receivables, a decrease of 10 basis points compared to September 30, 2022, and a 10 basis point increase from pre-pandemic levels as of December 31, 2019. The 30+ day contractual delinquency compares favorably to the company’s $178.8 million allowance for credit losses as of December 31, 2022.
  • General and administrative expenses for the fourth quarter of 2022 were $55.1 million, a decrease of $0.4 million, or 0.7%, 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 2022 was 13.4%, a 290 basis point improvement compared to the prior-year period.
  • The company expanded its operations to the state of Idaho in December. The company expects to expand into one additional state in the first quarter of 2023.

First Quarter 2023 Dividend

The company’s Board of Directors has declared a dividend of $0.30 per common share for the first quarter of 2023. The dividend will be paid on March 15, 2023 to shareholders of record as of the close of business on February 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 December 31, 2022, the company had net finance receivables of $1.7 billion and debt of $1.4 billion. The debt consisted of:

  • $147.5 million on the company’s $420 million senior revolving credit facility,
  • $18.6 million on the company’s aggregate $300 million revolving warehouse credit facilities, and
  • $1.2 billion through the company’s asset-backed securitizations.

As of December 31, 2022, the company’s unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was $555 million, or 77.1%, and the company had available liquidity of $101.4 million, including unrestricted cash on hand and immediate availability to draw down cash from its revolving credit facilities. As of December 31, 2022, the company’s fixed-rate debt as a percentage of total debt was 88%, with a weighted-average coupon of 3.6% and a weighted-average revolving duration of 2.1 years.

The company had a funded debt-to-equity ratio of 4.4 to 1.0 and a stockholders’ equity ratio of 17.9%, each as of December 31, 2022. On a non-GAAP basis, the company had a funded debt-to-tangible equity ratio of 4.6 to 1.0, as of December 31, 2022. 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 18 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 new underwriting models and processes, including as to the effectiveness of new 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; 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, including those associated with CECL accounting; the impact of changes in tax laws, guidance, and interpretations, 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 COVID-19 pandemic may impact Regional Management’s operations and financial condition and may also magnify many of the existing risks and uncertainties.

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 22

 

 

4Q 21

 

 

$

 

 

%

 

 

FY 22

 

 

FY 21

 

 

$

 

 

%

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fee income

 

$

117,432

 

 

$

107,117

 

 

$

10,315

 

 

 

9.6

%

 

$

450,854

 

 

$

382,544

 

 

$

68,310

 

 

 

17.9

%

Insurance income, net

 

 

10,751

 

 

 

9,423

 

 

 

1,328

 

 

 

14.1

%

 

 

43,502

 

 

 

35,482

 

 

 

8,020

 

 

 

22.6

%

Other income

 

 

3,833

 

 

 

2,944

 

 

 

889

 

 

 

30.2

%

 

 

12,831

 

 

 

10,325

 

 

 

2,506

 

 

 

24.3

%

Total revenue

 

 

132,016

 

 

 

119,484

 

 

 

12,532

 

 

 

10.5

%

 

 

507,187

 

 

 

428,351

 

 

 

78,836

 

 

 

18.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

60,786

 

 

 

31,008

 

 

 

(29,778

)

 

 

(96.0

)%

 

 

185,115

 

 

 

89,015

 

 

 

(96,100

)

 

 

(108.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel

 

 

34,669

 

 

 

33,313

 

 

 

(1,356

)

 

 

(4.1

)%

 

 

141,243

 

 

 

119,833

 

 

 

(21,410

)

 

 

(17.9

)%

Occupancy

 

 

5,997

 

 

 

6,511

 

 

 

514

 

 

 

7.9

%

 

 

23,809

 

 

 

24,126

 

 

 

317

 

 

 

1.3

%

Marketing

 

 

4,239

 

 

 

4,431

 

 

 

192

 

 

 

4.3

%

 

 

15,378

 

 

 

14,405

 

 

 

(973

)

 

 

(6.8

)%

Other

 

 

10,238

 

 

 

11,277

 

 

 

1,039

 

 

 

9.2

%

 

 

42,098

 

 

 

37,150

 

 

 

(4,948

)

 

 

(13.3

)%

Total general and administrative

 

 

55,143

 

 

 

55,532

 

 

 

389

 

 

 

0.7

%

 

 

222,528

 

 

 

195,514

 

 

 

(27,014

)

 

 

(13.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

14,855

 

 

 

7,597

 

 

 

(7,258

)

 

 

(95.5

)%

 

 

34,223

 

 

 

31,349

 

 

 

(2,874

)

 

 

(9.2

)%

Income before income taxes

 

 

1,232

 

 

 

25,347

 

 

 

(24,115

)

 

 

(95.1

)%

 

 

65,321

 

 

 

112,473

 

 

 

(47,152

)

 

 

(41.9

)%

Income taxes

 

 

(1,159

)

 

 

4,569

 

 

 

5,728

 

 

 

125.4

%

 

 

14,097

 

 

 

23,786

 

 

 

9,689

 

 

 

40.7

%

Net income

 

$

2,391

 

 

$

20,778

 

 

$

(18,387

)

 

 

(88.5

)%

 

$

51,224

 

 

$

88,687

 

 

$

(37,463

)

 

 

(42.2

)%

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.26

 

 

$

2.18

 

 

$

(1.92

)

 

 

(88.1

)%

 

$

5.51

 

 

$

8.84

 

 

$

(3.33

)

 

 

(37.7

)%

Diluted

 

$

0.25

 

 

$

2.04

 

 

$

(1.79

)

 

 

(87.7

)%

 

$

5.30

 

 

$

8.33

 

 

$

(3.03

)

 

 

(36.4

)%

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

9,199

 

 

 

9,545

 

 

 

346

 

 

 

3.6

%

 

 

9,296

 

 

 

10,034

 

 

 

738

 

 

 

7.4

%

Diluted

 

 

9,411

 

 

 

10,177

 

 

 

766

 

 

 

7.5

%

 

 

9,656

 

 

 

10,643

 

 

 

987

 

 

 

9.3

%

Return on average assets (annualized)

 

 

0.6

%

 

 

6.0

%

 

 

 

 

 

 

 

 

 

 

3.3

%

 

 

7.2

%

 

 

 

 

 

 

 

 

Return on average equity (annualized)

 

 

3.1

%

 

 

29.5

%

 

 

 

 

 

 

 

 

 

 

17.0

%

 

 

31.6

%

 

 

 

 

 

 

 

 

 

Regional Management Corp. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(dollars in thousands, except par value amounts)

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease)

 

 

 

4Q 22

 

 

4Q 21

 

 

$

 

 

%

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

3,873

 

 

$

10,507

 

 

$

(6,634

)

 

 

(63.1

)%

Net finance receivables

 

 

1,699,393

 

 

 

1,426,257

 

 

 

273,136

 

 

 

19.2

%

Unearned insurance premiums

 

 

(51,008

)

 

 

(47,837

)

 

 

(3,171

)

 

 

(6.6

)%

Allowance for credit losses

 

 

(178,800

)

 

 

(159,300

)

 

 

(19,500

)

 

 

(12.2

)%

Net finance receivables, less unearned insurance premiums and allowance for credit losses

 

 

1,469,585

 

 

 

1,219,120

 

 

 

250,465

 

 

 

20.5

%

Restricted cash

 

 

127,926

 

 

 

138,682

 

 

 

(10,756

)

 

 

(7.8

)%

Lease assets

 

 

34,521

 

 

 

28,721

 

 

 

5,800

 

 

 

20.2

%

Restricted available-for-sale investments

 

 

20,416

 

 

 

 

 

 

20,416

 

 

 

100.0

%

Deferred tax assets, net

 

 

13,810

 

 

 

18,420

 

 

 

(4,610

)

 

 

(25.0

)%

Property and equipment

 

 

14,526

 

 

 

12,938

 

 

 

1,588

 

 

 

12.3

%

Intangible assets

 

 

12,122

 

 

 

9,517

 

 

 

2,605

 

 

 

27.4

%

Other assets

 

 

28,208

 

 

 

21,757

 

 

 

6,451

 

 

 

29.7

%

Total assets

 

$

1,724,987

 

 

$

1,459,662

 

 

$

265,325

 

 

 

18.2

%

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

1,355,359

 

 

$

1,107,953

 

 

$

247,406

 

 

 

22.3

%

Unamortized debt issuance costs

 

 

(9,512

)

 

 

(11,010

)

 

 

1,498

 

 

 

13.6

%

Net debt

 

 

1,345,847

 

 

 

1,096,943

 

 

 

248,904

 

 

 

22.7

%

Lease liabilities

 

 

36,712

 

 

 

30,700

 

 

 

6,012

 

 

 

19.6

%

Accounts payable and accrued expenses

 

 

33,795

 

 

 

49,283

 

 

 

(15,488

)

 

 

(31.4

)%

Total liabilities

 

 

1,416,354

 

 

 

1,176,926

 

 

 

239,428

 

 

 

20.3

%

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, 14,330 shares issued and 9,523 shares outstanding at December 31, 2022 and 14,157 shares issued and 9,788 shares outstanding at December 31, 2021)

 

 

1,433

 

 

 

1,416

 

 

 

17

 

 

 

1.2

%

Additional paid-in capital

 

 

112,384

 

 

 

104,745

 

 

 

7,639

 

 

 

7.3

%

Retained earnings

 

 

345,545

 

 

 

306,105

 

 

 

39,440

 

 

 

12.9

%

Accumulated other comprehensive loss

 

 

(586

)

 

 

 

 

 

(586

)

 

 

(100.0

)%

Treasury stock (4,807 shares at December 31, 2022 and 4,370 shares at December 31, 2021)

 

 

(150,143

)

 

 

(129,530

)

 

 

(20,613

)

 

 

(15.9

)%

Total stockholders’ equity

 

 

308,633

 

 

 

282,736

 

 

 

25,897

 

 

 

9.2

%

Total liabilities and stockholders’ equity

 

$

1,724,987

 

 

$

1,459,662

 

 

$

265,325

 

 

 

18.2

%

 

Regional Management Corp. and Subsidiaries

Selected Financial Data

(Unaudited)

(dollars in thousands, except per share amounts)

 

 

 

Net Finance Receivables by Product

 

 

 

4Q 22

 

 

3Q 22

 

 

QoQ $

Inc (Dec)

 

 

QoQ %

Inc (Dec)

 

 

4Q 21

 

 

YoY $

Inc (Dec)

 

 

YoY %

Inc (Dec)

 

Small loans

 

$

481,605

 

 

$

480,199

 

 

$

1,406

 

 

 

0.3

%

 

$

445,023

 

 

$

36,582

 

 

 

8.2

%

Large loans

 

 

1,208,185

 

 

 

1,116,455

 

 

 

91,730

 

 

 

8.2

%

 

 

970,694

 

 

 

237,491

 

 

 

24.5

%

Retail loans

 

 

9,603

 

 

 

10,944

 

 

 

(1,341

)

 

 

(12.3

)%

 

 

10,540

 

 

 

(937

)

 

 

(8.9

)%

Total net finance receivables

 

$

1,699,393

 

 

$

1,607,598

 

 

$

91,795

 

 

 

5.7

%

 

$

1,426,257

 

 

$

273,136

 

 

 

19.2

%

Number of branches at period end

 

 

345

 

 

 

338

 

 

 

7

 

 

 

2.1

%

 

 

350

 

 

 

(5

)

 

 

(1.4

)%

Net finance receivables per branch

 

$

4,926

 

 

$

4,756

 

 

$

170

 

 

 

3.6

%

 

$

4,075

 

 

$

851

 

 

 

20.9

%

 

 

 

Averages and Yields

 

 

 

4Q 22

 

 

3Q 22

 

 

4Q 21

 

 

 

Average Net Finance Receivables

 

 

Average Yield (1)

 

 

Average Net Finance Receivables

 

 

Average Yield (1)

 

 

Average Net Finance Receivables

 

 

Average Yield (1)

 

Small loans

 

$

479,777

 

 

 

33.5

%

 

$

466,087

 

 

 

35.5

%

 

$

427,586

 

 

 

38.1

%

Large loans

 

 

1,155,629

 

 

 

26.6

%

 

 

1,089,225

 

 

 

27.2

%

 

 

925,226

 

 

 

28.5

%

Retail loans

 

 

10,563

 

 

 

16.3

%

 

 

10,935

 

 

 

18.5

%

 

 

10,435

 

 

 

18.7

%

Total interest and fee yield

 

$

1,645,969

 

 

 

28.5

%

 

$

1,566,247

 

 

 

29.6

%

 

$

1,363,247

 

 

 

31.4

%

Total revenue yield

 

$

1,645,969

 

 

 

32.1

%

 

$

1,566,247

 

 

 

33.6

%

 

$

1,363,247

 

 

 

35.1

%

 

(1) Annualized interest and fee income as a percentage of average net finance receivables.

 

 

Components of Increase in Interest and Fee Income

 

 

 

4Q 22 Compared to 4Q 21

 

 

 

Increase (Decrease)

 

 

 

Volume

 

 

Rate

 

 

Volume & Rate

 

 

Total

 

Small loans

 

$

4,971

 

 

$

(4,875

)

 

$

(595

)

 

$

(499

)

Large loans

 

 

16,411

 

 

 

(4,436

)

 

 

(1,105

)

 

 

10,870

 

Retail loans

 

 

6

 

 

 

(61

)

 

 

(1

)

 

 

(56

)

Product mix

 

 

827

 

 

 

(484

)

 

 

(343

)

 

 

 

Total increase in interest and fee income

 

$

22,215

 

 

$

(9,856

)

 

$

(2,044

)

 

$

10,315

 

 

 

 

Loans Originated (1)

 

 

 

4Q 22

 

 

3Q 22

 

 

QoQ $

Inc (Dec)

 

 

QoQ %

Inc (Dec)

 

 

4Q 21

 

 

YoY $

Inc (Dec)

 

 

YoY %

Inc (Dec)

 

Small loans

 

$

171,511

 

 

$

173,269

 

 

$

(1,758

)

 

 

(1.0

)%

 

$

175,898

 

 

$

(4,387

)

 

 

(2.5

)%

Large loans

 

 

297,447

 

 

 

243,259

 

 

 

54,188

 

 

 

22.3

%

 

 

255,828

 

 

 

41,619

 

 

 

16.3

%

Retail loans

 

 

1,390

 

 

 

2,145

 

 

 

(755

)

 

 

(35.2

)%

 

 

2,630

 

 

 

(1,240

)

 

 

(47.1

)%

Total loans originated

 

$

470,348

 

 

$

418,673

 

 

$

51,675

 

 

 

12.3

%

 

$

434,356

 

 

$

35,992

 

 

 

8.3

%

 

(1) Represents the principal balance of loan originations and refinancings.

 

 

Other Key Metrics

 

 

 

4Q 22

 

 

3Q 22

 

 

4Q 21

 

Net credit losses

 

$

61,786

 

 

$

35,771

 

 

$

21,808

 

Percentage of average net finance receivables (annualized)

 

 

15.0

%

 

 

9.1

%

 

 

6.4

%

Provision for credit losses

 

$

60,786

 

 

$

48,071

 

 

$

31,008

 

Percentage of average net finance receivables (annualized)

 

 

14.8

%

 

 

12.3

%

 

 

9.1

%

Percentage of total revenue

 

 

46.0

%

 

 

36.6

%

 

 

26.0

%

General and administrative expenses

 

$

55,143

 

 

$

58,164

 

 

$

55,532

 

Percentage of average net finance receivables (annualized)

 

 

13.4

%

 

 

14.9

%

 

 

16.3

%

Percentage of total revenue

 

 

41.8

%

 

 

44.2

%

 

 

46.5

%

Same store results (1):

 

 

 

 

 

 

 

 

 

 

 

 

Net finance receivables at period-end

 

$

1,625,008

 

 

$

1,552,740

 

 

$

1,400,817

 

Net finance receivable growth rate

 

 

14.8

%

 

 

19.2

%

 

 

23.3

%

Number of branches in calculation

 

 

320

 

 

 

315

 

 

 

330

 

(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

 

 

 

4Q 22

 

 

3Q 22

 

 

4Q 21

 

Allowance for credit losses (1)

 

$

178,800

 

 

 

10.5

%

 

$

179,800

 

 

 

11.2

%

 

$

159,300

 

 

 

11.2

%

 

Current

 

 

1,431,502

 

 

 

84.2

%

 

 

1,356,134

 

 

 

84.4

%

 

 

1,237,165

 

 

 

86.7

%

1 to 29 days past due

 

 

148,048

 

 

 

8.7

%

 

 

135,468

 

 

 

8.4

%

 

 

104,201

 

 

 

7.3

%

Delinquent accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 to 59 days

 

 

36,208

 

 

 

2.2

%

 

 

32,295

 

 

 

2.0

%

 

 

25,283

 

 

 

1.9

%

60 to 89 days

 

 

31,352

 

 

 

1.8

%

 

 

25,375

 

 

 

1.6

%

 

 

20,395

 

 

 

1.4

%

90 to 119 days

 

 

24,293

 

 

 

1.4

%

 

 

21,720

 

 

 

1.3

%

 

 

15,962

 

 

 

1.0

%

120 to 149 days

 

 

16,257

 

 

 

1.0

%

 

 

17,503

 

 

 

1.1

%

 

 

12,466

 

 

 

0.9

%

150 to 179 days

 

 

11,733

 

 

 

0.7

%

 

 

19,103

 

 

 

1.2

%

 

 

10,785

 

 

 

0.8

%

Total contractual delinquency

 

$

119,843

 

 

 

7.1

%

 

$

115,996

 

 

 

7.2

%

 

$

84,891

 

 

 

6.0

%

Total net finance receivables

 

$

1,699,393

 

 

 

100.0

%

 

$

1,607,598

 

 

 

100.0

%

 

$

1,426,257

 

 

 

100.0

%

1 day and over past due

 

$

267,891

 

 

 

15.8

%

 

$

251,464

 

 

 

15.6

%

 

$

189,092

 

 

 

13.3

%

 

Contacts

Investor Relations

Garrett Edson, (203) 682-8331

investor.relations@regionalmanagement.com

Read full story here

error: Content is protected !!