Regional Management shares rose 7.8% after earnings, as investors appeared to favor record quarterly revenue, year-over-year EPS growth and improving sequential credit losses. Credit remains a concern: net credit losses were above the company’s outlook and prior-year level, while delinquencies increased.
- Net income was $15.1 million, or $1.61 per diluted share, up 5% and 13% year over year, respectively. Revenue reached a quarterly record of $179 million, up 8%.
- Net finance receivables grew $62 million during the quarter to $2.2 billion; the portfolio was up 8% year over year.
- Net credit loss rate improved 130 basis points sequentially to 10.9%, but was 20 basis points above outlook and 70 basis points above the year-earlier quarter. Delinquencies of 7.5% were up 50 basis points both sequentially and year over year.
- Management cited 2025-originated loans, slower portfolio growth, elevated gas prices and inflation as credit pressures. Tightening in higher-risk digital segments contributed to a 13% year-over-year decline in digitally sourced originations.
- The Column bank partnership accounted for just over 40% of total originations so far in October, versus roughly 28% on a run-rate basis in July; it added about 120 basis points to third-quarter revenue yield.
Community Discussion