Regional Management Corp. Announces First Quarter 2022 Results – businesswire.com

Regional Management Corp. Announces First Quarter 2022 Results – businesswire.com

– Net income of $26.8 million and diluted earnings per share of $2.67 –
– 30.8% year-over-year net finance receivables growth and 23.7% year-over-year revenue growth –
– 30+ day contractual delinquencies of 5.7% as of March 31, 2022, an improvement of 30 basis points compared to December 31, 2021 –
GREENVILLE, S.C.–()–Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the first quarter ended March 31, 2022.

“We produced another set of outstanding financial and operating results in the first quarter,” said Robert W. Beck, President and Chief Executive Officer of Regional Management Corp. “Our strategic growth initiatives enabled us to overcome the normal seasonal portfolio liquidation that typically is the hallmark of the first quarter. We grew our net finance receivables in the quarter to an all-time high of $1.45 billion, up 31% from a year prior. Our portfolio in turn generated record quarterly revenue of $121 million, a year-over-year increase of 24%. We posted net income of $26.8 million and diluted EPS of $2.67, both record highs, with diluted EPS up 16% from the prior-year period. We also delivered robust returns of 7.3% ROA and 36.7% ROE.”
“We continue to experience strong loan demand across all channels, and we remain well-positioned to capture additional market share,” added Mr. Beck. “We expanded our operations to Mississippi in February, and in late March, we began piloting end-to-end digital lending. We are excited to introduce this new lending channel, which allows us to offer our small and large loan products on an entirely digital basis without intervention by our team, from the point of application through loan proceeds distribution. Moving ahead, we are focused on maintaining our strong credit profile and will continue executing on our long-term strategies of digital innovation, geographic expansion, and product and channel development. We look forward to continuing our delivery of profitable growth, sustainable returns, and long-term value to our shareholders.”
First Quarter 2022 Highlights
Second Quarter 2022 Dividend
The company’s Board of Directors has declared a dividend of $0.30 per common share for the second quarter of 2022. The dividend will be paid on June 15, 2022 to shareholders of record as of the close of business on May 25, 2022. 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 March 31, 2022, the company had net finance receivables of $1.4 billion and debt of $1.1 billion. The debt consisted of:
As of March 31, 2022, the company’s unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was $671 million, or 83.9%, and the company had available liquidity of $214.6 million, including unrestricted cash on hand and immediate availability to draw down cash from its revolving credit facilities.
As of March 31, 2022, the company’s fixed-rate debt as a percentage of total debt was 89%, with a weighted-average coupon of 2.9% and an average revolving duration of 2.9 years. The company held interest rate caps with an aggregate notional principal amount of $550 million to manage the risk associated with variable rate debt. The interest rate caps are based on one-month LIBOR and reimburse the company for the difference when one-month LIBOR exceeds the strike rate.
In April 2022, the company sold $300 million of the interest rate cap contracts maturing in 2023 as a result of the significant increases in rates and the value of the interest rate caps. Following the sale, the company continues to maintain $250 million in interest rate cap protection, with one-month LIBOR strike rates between 25 and 50 basis points and maturity dates between February 2024 and February 2026.
The company had a funded debt-to-equity ratio of 3.8 to 1.0 and a stockholders’ equity ratio of 19.9%, each as of March 31, 2022. On a non-GAAP basis, the company had a funded debt-to-tangible equity ratio of 3.9 to 1.0, as of March 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 14 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, retailers, 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: risks related to Regional Management’s business, including the COVID-19 pandemic and its impact on Regional Management’s operations and financial condition; 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 also magnify many of these 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)
 
 
 
1Q 22
 
 
1Q 21
 
 
$
 
 
%
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fee income
 
$
107,631
 
 
$
87,279
 
 
$
20,352
 
 
 
23.3
%
Insurance income, net
 
 
10,544
 
 
 
7,985
 
 
 
2,559
 
 
 
32.0
%
Other income
 
 
2,673
 
 
 
2,467
 
 
 
206
 
 
 
8.4
%
Total revenue
 
 
120,848
 
 
 
97,731
 
 
 
23,117
 
 
 
23.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
 
30,858
 
 
 
11,362
 
 
 
(19,496
)
 
 
(171.6
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Personnel
 
 
35,654
 
 
 
28,851
 
 
 
(6,803
)
 
 
(23.6
)%
Occupancy
 
 
5,808
 
 
 
6,020
 
 
 
212
 
 
 
3.5
%
Marketing
 
 
3,091
 
 
 
2,710
 
 
 
(381
)
 
 
(14.1
)%
Other
 
 
10,547
 
 
 
8,262
 
 
 
(2,285
)
 
 
(27.7
)%
Total general and administrative
 
 
55,100
 
 
 
45,843
 
 
 
(9,257
)
 
 
(20.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
(59
)
 
 
7,135
 
 
 
7,194
 
 
 
100.8
%
Income before income taxes
 
 
34,949
 
 
 
33,391
 
 
 
1,558
 
 
 
4.7
%
Income taxes
 
 
8,166
 
 
 
7,869
 
 
 
(297
)
 
 
(3.8
)%
Net income
 
$
26,783
 
 
$
25,522
 
 
$
1,261
 
 
 
4.9
%
Net income per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
2.81
 
 
$
2.42
 
 
$
0.39
 
 
 
16.1
%
Diluted
 
$
2.67
 
 
$
2.31
 
 
$
0.36
 
 
 
15.6
%
Weighted-average common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
9,533
 
 
 
10,543
 
 
 
1,010
 
 
 
9.6
%
Diluted
 
 
10,022
 
 
 
11,066
 
 
 
1,044
 
 
 
9.4
%
Return on average assets (annualized)
 
 
7.3
%
 
 
9.3
%
 
 
 
 
 
 
 
 
Return on average equity (annualized)
 
 
36.7
%
 
 
36.7
%
 
 
 
 
 
 
 
 
Regional Management Corp. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands, except par value amounts)
 
 
 
 
 
 
 
 
 
 
Increase (Decrease)
 
 
 
1Q 22
 
 
1Q 21
 
 
$
 
 
%
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
 
$
17,635
 
 
$
7,226
 
 
$
10,409
 
 
 
144.0
%
Net finance receivables
 
 
1,446,071
 
 
 
1,105,603
 
 
 
340,468
 
 
 
30.8
%
Unearned insurance premiums
 
 
(47,075
)
 
 
(34,751
)
 
 
(12,324
)
 
 
(35.5
)%
Allowance for credit losses
 
 
(158,800
)
 
 
(139,600
)
 
 
(19,200
)
 
 
(13.8
)%
Net finance receivables, less unearned insurance premiums and allowance for credit losses
 
 
1,240,196
 
 
 
931,252
 
 
 
308,944
 
 
 
33.2
%
Restricted cash
 
 
138,919
 
 
 
79,012
 
 
 
59,907
 
 
 
75.8
%
Lease assets
 
 
28,087
 
 
 
27,652
 
 
 
435
 
 
 
1.6
%
Deferred tax assets, net
 
 
18,093
 
 
 
14,366
 
 
 
3,727
 
 
 
25.9
%
Property and equipment
 
 
13,036
 
 
 
13,046
 
 
 
(10
)
 
 
(0.1
)%
Intangible assets
 
 
9,475
 
 
 
8,926
 
 
 
549
 
 
 
6.2
%
Other assets
 
 
32,230
 
 
 
16,815
 
 
 
15,415
 
 
 
91.7
%
Total assets
 
$
1,497,671
 
 
$
1,098,295
 
 
$
399,376
 
 
 
36.4
%
Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt
 
$
1,134,377
 
 
$
752,200
 
 
$
382,177
 
 
 
50.8
%
Unamortized debt issuance costs
 
 
(12,001
)
 
 
(8,196
)
 
 
(3,805
)
 
 
(46.4
)%
Net debt
 
 
1,122,376
 
 
 
744,004
 
 
 
378,372
 
 
 
50.9
%
Accounts payable and accrued expenses
 
 
46,302
 
 
 
40,943
 
 
 
5,359
 
 
 
13.1
%
Lease liabilities
 
 
30,251
 
 
 
29,712
 
 
 
539
 
 
 
1.8
%
Total liabilities
 
 
1,198,929
 
 
 
814,659
 
 
 
384,270
 
 
 
47.2
%
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, 14,360 shares issued and 9,806 shares outstanding at March 31, 2022 and 14,063 shares issued and 10,792 shares outstanding at March 31, 2021)
 
 
1,436
 
 
 
1,406
 
 
 
30
 
 
 
2.1
%
Additional paid-in capital
 
 
105,989
 
 
 
105,493
 
 
 
496
 
 
 
0.5
%
Retained earnings
 
 
329,878
 
 
 
250,659
 
 
 
79,219
 
 
 
31.6
%
Treasury stock (4,554 shares at March 31, 2022 and 3,271 shares at March 31, 2021)
 
 
(138,561
)
 
 
(73,922
)
 
 
(64,639
)
 
 
(87.4
)%
Total stockholders’ equity
 
 
298,742
 
 
 
283,636
 
 
 
15,106
 
 
 
5.3
%
Total liabilities and stockholders’ equity
 
$
1,497,671
 
 
$
1,098,295
 
 
$
399,376
 
 
 
36.4
%
Regional Management Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
(dollars in thousands, except per share amounts)
 
 
Net Finance Receivables by Product
 
 
 
1Q 22
 
 
4Q 21
 
 
QoQ $
Inc (Dec)
 
 
QoQ %
Inc (Dec)
 
 
1Q 21
 
 
YoY $
Inc (Dec)
 
 
YoY %
Inc (Dec)
 
Small loans
 
$
438,153
 
 
$
445,023
 
 
$
(6,870
)
 
 
(1.5
)%
 
$
371,188
 
 
$
66,965
 
 
 
18.0
%
Large loans
 
 
997,226
 
 
 
970,694
 
 
 
26,532
 
 
 
2.7
%
 
 
722,474
 
 
 
274,752
 
 
 
38.0
%
Retail loans
 
 
10,692
 
 
 
10,540
 
 
 
152
 
 
 
1.4
%
 
 
11,941
 
 
 
(1,249
)
 
 
(10.5
)%
Total net finance receivables
 
$
1,446,071
 
 
$
1,426,257
 
 
$
19,814
 
 
 
1.4
%
 
$
1,105,603
 
 
$
340,468
 
 
 
30.8
%
Number of branches at period end
 
 
354
 
 
 
350
 
 
 
4
 
 
 
1.1
%
 
 
365
 
 
 
(11
)
 
 
(3.0
)%
Net finance receivables per branch
 
$
4,085
 
 
$
4,075
 
 
$
10
 
 
 
0.2
%
 
$
3,029
 
 
$
1,056
 
 
 
34.9
%
 
 
Averages and Yields
 
 
 
1Q 22
 
 
4Q 21
 
 
1Q 21
 
 
 
Average Net
Finance
Receivables
 
 
Average Yield (1)
 
 
Average Net
Finance
Receivables
 
 
Average Yield (1)
 
 
Average Net
Finance
Receivables
 
 
Average Yield (1)
 
Small loans
 
$
440,936
 
 
 
36.0
%
 
$
427,586
 
 
 
38.1
%
 
$
389,138
 
 
 
37.5
%
Large loans
 
 
982,881
 
 
 
27.5
%
 
 
925,226
 
 
 
28.5
%
 
 
721,052
 
 
 
27.9
%
Retail loans
 
 
10,620
 
 
 
18.4
%
 
 
10,435
 
 
 
18.7
%
 
 
13,170
 
 
 
17.8
%
Total interest and fee yield
 
$
1,434,437
 
 
 
30.0
%
 
$
1,363,247
 
 
 
31.4
%
 
$
1,123,360
 
 
 
31.1
%
Total revenue yield
 
$
1,434,437
 
 
 
33.7
%
 
$
1,363,247
 
 
 
35.1
%
 
$
1,123,360
 
 
 
34.8
%
(1)
Annualized interest and fee income as a percentage of average net finance receivables.
 
 
Components of Increase in Interest and Fee Income
 
 
 
1Q 22 Compared to 1Q 21
 
 
 
Increase (Decrease)
 
 
 
Volume
 
 
Rate
 
 
Volume & Rate
 
 
Total
 
Small loans
 
$
4,851
 
 
$
(1,447
)
 
$
(192
)
 
$
3,212
 
Large loans
 
 
18,246
 
 
 
(740
)
 
 
(268
)
 
 
17,238
 
Retail loans
 
 
(113
)
 
 
19
 
 
 
(4
)
 
 
(98
)
Product mix
 
 
1,185
 
 
 
(821
)
 
 
(364
)
 
 

 
Total increase in interest and fee income
 
$
24,169
 
 
$
(2,989
)
 
$
(828
)
 
$
20,352
 
 
 
Loans Originated (1)
 
 
 
1Q 22
 
 
4Q 21
 
 
QoQ $
Inc (Dec)
 
 
QoQ %
Inc (Dec)
 
 
1Q 21
 
 
YoY $
Inc (Dec)
 
 
YoY %
Inc (Dec)
 
Small loans
 
$
137,131
 
 
$
175,898
 
 
$
(38,767
)
 
 
(22.0
)%
 
$
101,741
 
 
$
35,390
 
 
 
34.8
%
Large loans
 
 
186,279
 
 
 
255,828
 
 
 
(69,549
)
 
 
(27.2
)%
 
 
131,325
 
 
 
54,954
 
 
 
41.8
%
Retail loans
 
 
2,590
 
 
 
2,630
 
 
 
(40
)
 
 
(1.5
)%
 
 
1,780
 
 
 
810
 
 
 
45.5
%
Total loans originated
 
$
326,000
 
 
$
434,356
 
 
$
(108,356
)
 
 
(24.9
)%
 
$
234,846
 
 
$
91,154
 
 
 
38.8
%
(1)
Represents the principal balance of loan originations and refinancings.
 
 
Other Key Metrics
 
 
 
1Q 22
 
 
4Q 21
 
 
1Q 21
 
Net credit losses
 
$
31,358
 
 
$
21,808
 
 
$
21,762
 
Percentage of average net finance receivables (annualized)
 
 
8.7
%
 
 
6.4
%
 
 
7.7
%
Provision for credit losses (1)
 
$
30,858
 
 
$
31,008
 
 
$
11,362
 
Percentage of average net finance receivables (annualized)
 
 
8.6
%
 
 
9.1
%
 
 
4.0
%
Percentage of total revenue
 
 
25.5
%
 
 
26.0
%
 
 
11.6
%
General and administrative expenses
 
$
55,100
 
 
$
55,532
 
 
$
45,843
 
Percentage of average net finance receivables (annualized)
 
 
15.4
%
 
 
16.3
%
 
 
16.3
%
Percentage of total revenue
 
 
45.6
%
 
 
46.5
%
 
 
46.9
%
Same store results (2):
 
 
 
 
 
 
 
 
 
 
 
 
Net finance receivables at period-end
 
$
1,406,904
 
 
$
1,400,817
 
 
$
1,100,840
 
Net finance receivable growth rate
 
 
27.3
%
 
 
23.3
%
 
 
0.2
%
Number of branches in calculation
 
 
331
 
 
 
330
 
 
 
356
 
(1)
Includes macroeconomic impacts to provision for credit losses of $(1,100), $(1,100), and $(6,600) for 1Q 22, 4Q 21, and 1Q 21, respectively.
(2)
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
 
 
 
1Q 22
 
 
4Q 21
 
 
1Q 21
 
Allowance for credit losses (1)
 
$
158,800
 
 
 
11.0
%
 
$
159,300
 
 
 
11.2
%
 
$
139,600
 
 
 
12.6
%
 
Current
 
 
1,268,367
 
 
 
87.7
%
 
 
1,237,165
 
 
 
86.7
%
 
 
1,010,859
 
 
 
91.4
%
1 to 29 days past due
 
 
95,689
 
 
 
6.6
%
 
 
104,201
 
 
 
7.3
%
 
 
47,024
 
 
 
4.3
%
Delinquent accounts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30 to 59 days
 
 
19,818
 
 
 
1.4
%
 
 
25,283
 
 
 
1.9
%
 
 
11,252
 
 
 
1.0
%
60 to 89 days
 
 
16,390
 
 
 
1.1
%
 
 
20,395
 
 
 
1.4
%
 
 
9,808
 
 
 
0.9
%
90 to 119 days
 
 
15,636
 
 
 
1.1
%
 
 
15,962
 
 
 
1.0
%
 
 
8,682
 
 
 
0.8
%
120 to 149 days
 
 
15,322
 
 
 
1.1
%
 
 
12,466
 
 
 
0.9
%
 
 
8,717
 
 
 
0.8
%
150 to 179 days
 
 
14,849
 
 
 
1.0
%
 
 
10,785
 
 
 
0.8
%
 
 
9,261
 
 
 
0.8
%
Total contractual delinquency
 
$
82,015
 
 
 
5.7
%
 
$
84,891
 
 
 
6.0
%
 
$
47,720
 
 
 
4.3
%
Total net finance receivables
 
$
1,446,071
 
 
 
100.0
%
 
$
1,426,257
 
 
 
100.0
%
 
$
1,105,603
 
 
 
100.0
%
1 day and over past due
 
$
177,704
 
 
 
12.3
%
 
$
189,092
 
 
 
13.3
%
 
$
94,744
 
 
 
8.6
%
 
 
Contractual Delinquency by Product
 
 
 
1Q 22
 
 
4Q 21
 
 
1Q 21
 
Small loans
 
$
34,861
 
 
 
8.0
%
 
$
39,794
 
 
 
8.9
%
 
$
22,582
 
 
 
6.1
%
Large loans
 
 
46,375
 
 
 
4.7
%
 
 
44,348
 
 
 
4.6
%
 
 
24,404
 
 
 
3.4
%
Retail loans
 
 
779
 
 
 
7.3
%
 
 
749
 
 
 
7.1
%
 
 
734
 
 
 
6.1
%
Total contractual delinquency
 
$
82,015
 
 
 
5.7
%
 
$
84,891
 
 
 
6.0
%
 
$
47,720
 
 
 
4.3
%
(1)
Includes macroeconomic allowance for credit losses of $15,900, $17,000, and $26,400 in 1Q 22, 4Q 21, and 1Q 21, respectively.
 
 
Income Statement Quarterly Trend
 
 
 
1Q 21
 
 
2Q 21
 
 
3Q 21
 
 
4Q 21
 
 
1Q 22
 
 
QoQ $
B(W)
 
 
YoY $
B(W)
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fee income
 
$
87,279
 
 
$
88,793
 
 
$
99,355
 
 
$
107,117
 
 
$
107,631
 
 
$
514
 
 
$
20,352
 
Insurance income, net
 
 
7,985
 
 
 
8,656
 
 
 
9,418
 
 
 
9,423
 
 
 
10,544
 
 
 
1,121
 
 
 
2,559
 
Other income
 
 
2,467
 
 
 
2,227
 
 
 
2,687
 
 
 
2,944
 
 
 
2,673
 
 
 
(271
)
 
 
206
 
Total revenue
 
 
97,731
 
 
 
99,676
 
 
 
111,460
 
 
 
119,484
 
 
 
120,848
 
 
 
1,364
 
 
 
23,117
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
 
11,362
 
 
 
20,549
 
 
 
26,096
 
 
 
31,008
 
 
 
30,858
 
 
 
150
 
 
 
(19,496
)
 
Personnel
 
 
28,851
 
 
 
28,370
 
 
 
29,299
 
 
 
33,313
 
 
 
35,654
 
 
 
(2,341
)
 
 
(6,803
)
Occupancy
 
 
6,020
 
 
 
5,568
 
 
 
6,027
 
 
 
6,511
 
 
 
5,808
 
 
 
703
 
 
 
212
 
Marketing
 
 
2,710
 
 
 
4,776
 
 
 
2,488
 
 
 
4,431
 
 
 
3,091
 
 
 
1,340
 
 
 
(381
)
Other
 
 
8,262
 
 
 
7,675
 
 
 
9,936
 
 
 
11,277
 
 
 
10,547
 
 
 
730
 
 
 
(2,285
)
Total general and administrative
 
 
45,843
 
 
 
46,389
 
 
 
47,750
 
 
 
55,532
 
 
 
55,100
 
 
 
432
 
 
 
(9,257
)
 
Interest expense
 
 
7,135
 
 
 
7,801
 
 
 
8,816
 
 
 
7,597
 
 
 
(59
)
 
 
7,656
 
 
 
7,194
 
Income before income taxes
 
 
33,391
 
 
 
24,937
 
 
 
28,798
 
 
 
25,347
 
 
 
34,949
 
 
 
9,602
 
 
 
1,558
 
Income taxes
 
 
7,869
 
 
 
4,771
 
 
 
6,577
 
 
 
4,569
 
 
 
8,166
 
 
 
(3,597
)
 
 
(297
)
Net income
 
$
25,522
 
 
$
20,166
 
 
$
22,221
 
 
$
20,778
 
 
$
26,783
 
 
$
6,005
 
 
$
1,261
 
Net income per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
2.42
 
 
$
1.98
 
 
$
2.25
 
 
$
2.18
 
 
$
2.81
 
 
$
0.63
 
 
$
0.39
 
Diluted
 
$
2.31
 
 
$
1.87
 
 
$
2.11
 
 
$
2.04
 
 
$
2.67
 
 
$
0.63
 
 
$
0.36
 
Weighted-average shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
10,543
 
 
 
10,200
 
 
 
9,861
 
 
 
9,545
 
 
 
9,533
 
 
 
12
 
 
 
1,010
 
Diluted
 
 
11,066
 
 
 
10,797
 
 
 
10,544
 
 
 
10,177
 
 
 
10,022
 
 
 
155
 
 
 
1,044
 
 
Net interest margin
 
$
90,596
 
 
$
91,875
 
 
$
102,644
 
 
$
111,887
 
 
$
120,907
 
 
$
9,020
 
 
$
30,311
 
Net credit margin
 
$
79,234
 
 
$
71,326
 
 
$
76,548
 
 
$
80,879
 
 
$
90,049
 
 
$
9,170
 
 
$
10,815
 
 
 
Balance Sheet Quarterly Trend
 
 
 
1Q 21
 
 
2Q 21
 
 
3Q 21
 
 
4Q 21
 
 
1Q 22
 
 
QoQ $
Inc (Dec)
 
 
YoY $
Inc (Dec)
 
Total assets
 
$
1,098,295
 
 
$
1,191,305
 
 
$
1,313,558
 
 
$
1,459,662
 
 
$
1,497,671
 
 
$
38,009
 
 
$
399,376
 
Net finance receivables
 
$
1,105,603
 
 
$
1,183,387
 
 
$
1,314,233
 
 
$
1,426,257
 
 
$
1,446,071
 
 
$
19,814
 
 
$
340,468
 
Allowance for credit losses
 
$
139,600
 
 
$
139,400
 
 
$
150,100
 
 
$
159,300
 
 
$
158,800
 
 
$
(500
)
 
$
19,200
 
Debt
 
$
752,200
 
 
$
853,067
 
 
$
978,803
 
 
$
1,107,953
 
 
$
1,134,377
 
 
$
26,424
 
 
$
382,177
 
 
 
Other Key Metrics Quarterly Trend
 
 
 
1Q 21
 
 
2Q 21
 
 
3Q 21
 
 
4Q 21
 
 
1Q 22
 
 
QoQ
Inc (Dec)
 
 
YoY
Inc (Dec)
 
Interest and fee yield (annualized)
 
 
31.1
%
 
 
31.6
%
 
 
32.0
%
 
 
31.4
%
 
 
30.0
%
 
 
(1.4
)%
 
 
(1.1
)%
Efficiency ratio (1)
 
 
46.9
%
 
 
46.5
%
 
 
42.8
%
 
 
46.5
%
 
 
45.6
%
 
 
(0.9
)%
 
 
(1.3
)%
Operating expense ratio (2)
 
 
16.3
%
 
 
16.5
%
 
 
15.4
%
 
 
16.3
%
 
 
15.4
%
 
 
(0.9
)%
 
 
(0.9
)%
30+ contractual delinquency
 
 
4.3
%
 
 
3.6
%
 
 
4.7
%
 
 
6.0
%
 
 
5.7
%
 
 
(0.3
)%
 
 
1.4
%
Net credit loss ratio (3)
 
 
7.7
%
 
 
7.4
%
 
 
5.0
%
 
 
6.4
%
 
 
8.7
%
 
 
2.3
%
 
 
1.0
%
Book value per share
 
$
26.28
 
 
$
26.93
 
 
$
27.73
 
 
$
28.89
 
 
$
30.47
 
 
$
1.58
 
 
$
4.19
 
(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.
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 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.
 
 
1Q 22
 
Debt
 
$
1,134,377
 
 
Total stockholders’ equity
 
 
298,742
 
Less: Intangible assets
 
 
9,475
 
Tangible equity (non-GAAP)
 
$
289,267
 
 
Funded debt-to-equity ratio
 
 
3.8
x
Funded debt-to-tangible equity ratio (non-GAAP)
 
 
3.9
x
 
Investor Relations
Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
Investor Relations
Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com

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