From Nasdaq: 2025-02-18 13:40:00

Shares of Regional Management Corp. (RM) dropped 2% after reporting Q4 2024 results, which beat earnings expectations but were impacted by higher credit loss provisions and personnel costs. However, loan origination growth and improved insurance income partially offset the negatives. Total revenues rose 9.3% to $154.8 million, beating estimates. Interest and fee income also increased to $138.2 million.

RM’s net income for Q4 was $9.9 million, a significant improvement from the previous year’s $7.6 million loss. Net finance receivables grew to $1.9 billion, with small loans increasing by 12.4% to $554.7 million and large loans rising by 4.9% to $1.3 billion. The company recorded total loan originations of $475.9 million, a 16.7% increase year over year.

Exiting Q4, Regional Management had a cash balance of $4 million, down 12.4% from the previous year. Total assets increased by 6.4% to $1.9 billion, while net debt rose by 5.5% to $1.5 billion. Total liabilities grew by 5.4% to $1.6 billion, and total shareholders’ equity increased by 10.8% to $357.1 million.

For Q1 2025, RM announced a dividend of 30 cents per share, payable on March 13 to shareholders of record as of Feb. 20. In 2024, total revenues rose by 6.7% to $588.5 million, with adjusted EPS more than doubling year over year to $4.14.

Looking ahead, RM aims for at least 10% portfolio growth and increased net income in 2025. Q1 2025 general and administrative expenses are projected to be in the range of $65-$65.5 million, with interest expenses estimated at $20-$20.5 million. The company expects a decrease in total revenue yield and net credit losses of around $60 million for Q1.

Regional Management currently holds a Zacks Rank #3 (Hold). Other finance sector players like Virtu Financial, Euronet Worldwide, and American Express also reported positive fourth-quarter results, beating earnings expectations. Virtu Financial’s adjusted EPS grew significantly, while Euronet’s total revenues improved by 9% year over year. American Express saw a 16% increase in EPS and an 8.7% rise in total revenues.



Read more at Nasdaq: Regional Management’s Q4 Earnings Beat Estimates, Stock Dips 2%