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Jun 30, 2022
Regional Management Q2 2022 Earnings Report
Announced second quarter 2022 results with net income of $12.0 million and diluted earnings per share of $1.24.
Key Takeaways
Regional Management Corp. reported strong results for the second quarter ended June 30, 2022, including record quarterly revenue of $123 million, net income of $12 million, and diluted EPS of $1.24. The company expanded operations to Indiana and California, and grew its loan portfolio to an all-time high of $1.53 billion.
Net finance receivables grew 28.9% year-over-year.
Revenue increased 23.3% year-over-year.
30+ day contractual delinquencies improved 10 basis points compared to pre-pandemic levels.
Operating expense ratio reached a multi-year low of 14.7%.
Revenue by Segment
Forward Guidance
The company is focused on preserving credit quality and controlling expenses amidst economic uncertainty, while continuing to invest in disciplined portfolio growth and improved credit performance.
Positive Outlook
- Investments in improved credit models
- Shift to large and sub-36% loans
- Recent credit tightening actions
- Strong labor market
- Dynamic and adaptable underwriting capabilities
Challenges Ahead
- Economic environment is difficult
- Inflation began to impact customers more significantly
- Customers in higher-rate, higher-risk segments are particularly affected
- Delinquency and net credit loss rates had nearly normalized to 2019 pre-pandemic levels
Historical Earnings Impact
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Avg. Return Before/After Earnings
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