Regional Management Corp. Reports 6% Revenue Growth but 54% Drop in Net Income for Fiscal Quarter Ending March 31, 2025

Regional Management Corp. reported its financial results for the fiscal quarter ending March 31, 2025, revealing a total revenue of $152.97 million, a 6.0% increase from $144.31 million in the same period last year. The growth was primarily driven by a rise in interest and fee income, which increased by 6.0% to $136.55 million, alongside a modest increase in insurance income. However, net income fell significantly to $7.01 million, down 53.9% from $15.21 million in the prior year, largely due to a substantial increase in the provision for credit losses, which rose by 24.9% to $57.99 million.

The company’s financial position showed slight changes compared to the previous fiscal period. Total assets decreased to $1.90 billion from $1.91 billion, while net finance receivables remained relatively stable at $1.89 billion. The allowance for credit losses was reported at $199.10 million, slightly down from $199.50 million, indicating a cautious approach to managing credit risk amid changing economic conditions. The company’s debt levels also remained consistent, with total debt at $1.48 billion, reflecting a stable leverage position.

Operationally, Regional Management Corp. expanded its customer base, serving approximately 575,000 active accounts across 353 branch locations in 19 states. The company reported a total of 262,100 large installment loans and 312,200 small installment loans outstanding, with net finance receivables from large loans at $1.34 billion and small loans at $543.82 million. The company ceased accepting applications for retail loans in November 2022, focusing instead on its core loan products, which contributed to the overall growth in its finance receivables.

The filing also highlighted strategic developments, including a $30 million stock repurchase program authorized by the Board in December 2024, which is set to continue through December 2026. As of March 31, 2025, the company had repurchased 292,000 shares at a cost of $10.1 million. Additionally, the company declared a quarterly cash dividend of $0.30 per share, consistent with the previous year, reflecting its commitment to returning value to shareholders.

Looking ahead, Regional Management Corp. remains focused on navigating macroeconomic challenges, including inflation and interest rate fluctuations, while continuing to grow its higher-margin loan portfolio. The company maintains a strong liquidity position, with $129.3 million in available liquidity and $640.7 million in unused capacity on its revolving credit facilities as of March 31, 2025. The management anticipates that these factors will support its operational and growth strategies in the coming quarters.