Regional Management Corp. reported a significant increase in financial performance for the fiscal year ended December 31, 2024, with total revenue reaching $588.5 million, a 6.7% increase from $551.4 million in 2023. The company's net income surged to $41.2 million, up 158.3% from $16.0 million the previous year. This growth was driven by an increase in interest and fee income, which rose by 8.0% to $528.9 million, attributed to a 4.5% increase in average net finance receivables and a 1.0% increase in average yield. The company also reported a decrease in the provision for credit losses, which fell to $212.2 million from $220.0 million in 2023.
In terms of operational developments, Regional Management Corp. served 575,400 active accounts across 344 branches in 19 states as of December 31, 2024. The company experienced a 12.4% increase in small loans, which reached $554.7 million, while large loans increased by 4.9% to $1.3 billion. The company ceased offering retail loans in November 2022 to focus on its core loan portfolio, resulting in a significant decrease in retail loans outstanding. The company’s allowance for credit losses was 10.5% of net finance receivables, reflecting a proactive approach to managing credit risk amid changing economic conditions.
Strategically, Regional Management Corp. has expanded its geographic footprint and enhanced its product offerings. The company has entered new states and introduced new technologies to facilitate remote loan closings. Additionally, the company has invested in its digital capabilities, with over 27% of new customer volumes sourced digitally in 2024. The company also announced a $30 million stock repurchase program in December 2024, which is set to extend through December 2026.
Looking ahead, the company anticipates continued growth in its small loan portfolio while balancing risks associated with credit quality. The management team is focused on maintaining a strong liquidity profile, with $136.9 million in available liquidity as of December 31, 2024. The company is also closely monitoring macroeconomic factors, including inflation and interest rates, which may impact its operations and credit performance in the future. Overall, Regional Management Corp. remains committed to its growth strategy while ensuring sound risk management practices.
About Regional Management Corp.
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