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Jun 30, 2021
Regional Management Q2 2021 Earnings Report
Announced second quarter 2021 results, featuring net income of $20.2 million and diluted earnings per share of $1.87.
Key Takeaways
Regional Management Corp. reported a strong second quarter with a net income of $20.2 million and diluted earnings per share of $1.87. The company saw a 10.9% year-over-year increase in revenue and a 17.3% growth in core net finance receivables. Loan originations reached a record $373 million, driving net receivables to an all-time high of $1.2 billion.
Net income for the second quarter of 2021 was $20.2 million and diluted earnings per share was $1.87.
Net finance receivables as of June 30, 2021 were $1.2 billion, an increase of 15.7% from the prior-year period.
Originated $372.8 million of loans in the second quarter of 2021, an increase of 116.5% from the prior-year period.
Total revenue for the second quarter of 2021 was $99.7 million, an increase of 10.9% from the prior-year period.
Revenue by Segment
Forward Guidance
The company provided a full year 2021 outlook for net income, expecting it to be between $75 million and $80 million.
Positive Outlook
- Current economic conditions remain steady.
- The full year 2021 net credit loss rate will be approximately 7.0%.
- The company will build its allowance for credit losses in the second half of the year due to net finance receivables growth.
- The allowance for credit losses rate will normalize to pre-pandemic levels of approximately 10.8% by the end of the year.
- General and administrative expenses will increase in the second half of the year as the company continues to invest in its growth initiatives, including increased marketing expenses associated with digital lending efforts.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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