Regional Management Corp. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenue increased to $146.3 million, up 3.9% from $140.9 million in the same period of 2023. This growth was primarily driven by a 7.1% rise in interest and fee income, which reached $133.9 million, attributed to a 4.1% increase in average net finance receivables and a slight uptick in annualized average yield. However, net income for the quarter decreased to $7.7 million, down 13.1% from $8.8 million in the prior-year period, largely due to higher provisions for credit losses and increased expenses.

For the nine months ended September 30, 2024, net income rose significantly to $31.3 million, a 33.1% increase from $23.5 million in the same period of 2023. Total revenue for this period also grew by 5.8% to $433.7 million, with interest and fee income increasing by 7.5% to $390.6 million. The company reported total originations of $1.2 billion, up from $1.1 billion in the prior-year period.

The company’s net finance receivables as of September 30, 2024, totaled $1.82 billion, reflecting a 3.9% increase from $1.75 billion a year earlier. The small loan portfolio saw a notable growth of 10.7%, increasing by $50.6 million, while large loans remained stable at approximately $1.3 billion. The retail loan segment, however, experienced a significant decline, dropping 69.2% to $1.5 million, following the cessation of retail loan applications in November 2022.

The allowance for credit losses was maintained at 10.6% of net finance receivables, consistent with the prior year. The company reported net credit losses of $149.9 million for the nine months, a slight increase from $145.0 million in the previous year, with a net credit loss ratio of 11.3%.

On the operational front, Regional Management Corp. continues to focus on its core products, having ceased retail loan applications to concentrate on small and large installment loans. The company reported a total of 557,400 active accounts across 340 branches in 19 states as of September 30, 2024.

In terms of liquidity, the company had $4.7 million in cash and $149.9 million available to draw from revolving credit facilities. Total debt remained stable at approximately $1.4 billion, with a funded debt-to-equity ratio of 4.0 to 1.0. The company declared a quarterly cash dividend of $0.30 per share, payable in December 2024.