Financial Data and Key Metrics Changes - The company reported a net income of $9.9 million and diluted earnings per share of $0.98, a significant improvement from a net loss of $7.6 million in the prior year [7][17] - Total revenue for 2024 increased by 7% compared to 2023, with total revenue yields improving by 70 basis points year-over-year [16][17] - The net credit loss rate improved by 120 basis points in 2024, and the operating expense ratio improved by 40 basis points year-over-year [16] Business Line Data and Key Metrics Changes - The loan portfolio grew by $120 million in 2024, with record quarterly revenue of $155 million in Q4, up 9% from the prior year [9][36] - The auto-secured portfolio grew by 34% in 2024, now representing 10.9% of the total portfolio, while the small loan portfolio increased by 12% year-over-year [32] - Approximately 19% of the portfolio carried an APR greater than 36%, up from 16% a year ago, reflecting a 26% balance increase in 2024 [32] Market Data and Key Metrics Changes - The company experienced strong loan demand in Q4, with total originations up 17% year-over-year [30] - The 30-plus-day delinquency rate was 7.7%, up 80 basis points year-over-year, but 10 basis points better than the prior year when adjusted for a special loan sale [13][37] - The company expects to originate higher loan volumes in the first quarter, although it is typically the softest quarter due to seasonal impacts [34] Company Strategy and Development Direction - The company plans to pursue a minimum of 10% portfolio growth in 2025 while continuing to invest in strategic initiatives [57] - The barbell strategy of balancing low-risk auto-secured loans with higher-rate small loans is expected to drive returns [62][121] - The company is focused on maintaining expense discipline while investing in growth capabilities and technology [45][121] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving consumer health, citing low unemployment and real wage growth as positive indicators [72][76] - The company anticipates continued improvement in portfolio quality and credit loss performance in 2025, assuming stable economic conditions [15][17] - Management acknowledged the challenges posed by inflation but remains optimistic about the potential for growth in 2025 [76] Other Important Information - The company declared a dividend of $0.30 per common share for the first quarter, to be paid on March 13, 2025 [54] - The company repurchased over 100,000 shares of common stock in Q4 at a weighted average price of $33.83 per share [55] - The effective tax rate for Q4 was 22.3%, with an expected rate of approximately 24.5% for the first quarter of 2025 [50] Q&A Session Summary Question: Product mix between large and smaller installment loans - Management will continue to lean into the auto-secured business while balancing growth in higher-rate small loans [62] Question: Performance of the 2024 vintage versus the 2023 vintage - Newer originations are performing in line with expectations, with delinquencies on the front book at 7.2% compared to 11.9% on the back book [64] Question: Impact of potential interest rate cuts - Management has calculated the potential impact of rate cuts but will not disclose specifics [67] Question: Indicators of improving consumer health - Management cited low unemployment, real wage growth, and a strong job market as indicators of improving consumer health [72][76] Question: Competitive dynamics in the small loan category - Management does not see significant changes in competitive dynamics and believes they can grow in this space as needed [78] Question: Clarification on net income guidance - Management confirmed that net income is expected to be higher than the $41 million reported in 2024 [88][96] Question: G&A expenses guidance - Management provided guidance of $65 million to $65.5 million for the first quarter [100] Question: Cost of funds outlook - Management indicated that while some older securitizations will reset at higher rates, variable rates may decrease if interest rate cuts occur [104][106] Question: Credit reserve rate expectations - Management expects the credit reserve rate to remain flat in the first quarter, with potential improvements as the year progresses [110] Question: Tax refunds impact - Management stated it is too early to determine the impact of tax refunds for the current year [117]

This document contains summarized information concerning Regional Management Corp. (the "Company") and the Company's business, operations, financial performance, and trends. No representation is made that the information in this document is complete. For additional financial, statistical, and business information, please see the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission (the "SEC"), as well as the Company's othe ...

Group 1: Earnings Performance - Regional Management reported quarterly earnings of $0.98 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, and up from $0.54 per share a year ago, representing an earnings surprise of 11.36% [1] - The company posted revenues of $154.83 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.75% and increasing from $141.66 million year-over-year [2] Group 2: Stock Performance and Outlook - Regional Management shares have increased approximately 7.4% since the beginning of the year, compared to the S&P 500's gain of 2.7% [3] - The current consensus EPS estimate for the upcoming quarter is $1.48 on revenues of $155.74 million, and for the current fiscal year, it is $5.29 on revenues of $625.35 million [7] Group 3: Industry Context - The Financial - Consumer Loans industry, to which Regional Management belongs, is currently in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Execution Version Second Amendment to Credit Agreement and Consent This Second Amendment to Credit Agreement and Consent, dated as of January 31, 2025 (this "Amendment"), is entered into by and among Regional Management Receivables VI, LLC, a Delaware limited liability company (the "Borrower"), Regional Management Corp., a Delaware corporation, as servicer (the "Servicer"), the Lenders party hereto, and Regions Bank ("Regions"), as administrative agent (the "Administrative Agent"). Capitalized terms used an ...

Regional Management Corp. (RM) recently launched a $30 million stock buyback program authorized by its board of directors. The company aims to opportunistically repurchase shares when it believes the stock is undervalued, leveraging its financial position and liquidity.The buyback program is effective immediately and will run through Dec. 31, 2026. It reflects the company’s confidence in its financial health and aims to enhance shareholder value. Earlier, Regional Management announced a dividend of 30 cents ...

Regional Management Corp. (RM) announced the launch of a stock repurchase program. It has also outlined growth expectations for 2025.Details of RM’s Share Repurchase ProgramThe company’s board of directors authorized a stock repurchase program for its outstanding common stock worth up to $30 million. The authorization is effective immediately and will continue through Dec. 31, 2026.The timing and volume of the repurchases under the stock buyback program will depend on various factors, including market condi ...

Shares of Regional Management Corp. (RM) have lost 9.3% since it reported third-quarter 2024 results on Nov. 6, after the closing bell. Despite an earnings beat, investors might be concerned about the impact of Hurricane Helene and rising provision for credit losses on the company’s earnings. Higher interest and fee income and net financial receivables partially offset the negatives.It reported third-quarter 2024 adjusted earnings per share (EPS) of $1.18, which beat the Zacks Consensus Estimate by 12.4%. T ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period ended Commission File Number: 001-35477 Regional Management Corp. (Exact name of registrant as specified in its charter) Delaware 57-0847115 (State or other jurisdiction ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...

Regional Management Corp. (NYSE:RM) Q3 2024 Results Conference Call November 6, 2024 5:00 PM ET Company Participants Garrett Edson - ICR Rob Beck - President and CEO Harp Rana - CFO Conference Call Participants John Hecht - Jefferies Vincent Caintic - BTIG Bill Dezellem - Tieton Capital Operator Good afternoon, and welcome to the Regional Management Third Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be ...