Regional Management reports Q3 EPS 91c, consensus 79c

Reports Q3 revenue $140.9M, consensus $138.88M. “With a high-quality portfolio, prudent expense management, and solid execution of our core business, we delivered another set of strong results in the third quarter. We generated $8.8 million of net income and $0.91 of diluted EPS. Strong loan demand and our conservative underwriting criteria led to high-quality portfolio growth of $62 million, record revenue of $141 million, and a sequential increase in revenue yields of 80 basis points. We also continued to manage our expenses closely while furthering our strategic initiatives, driving a 50 basis point improvement in our operating expense ratio from the prior year. We are pleased with our team’s ability to deliver consistent, predictable, and superior results for our shareholders. We remain well-positioned to operate effectively in the current economic cycle,” added Mr. Beck. “We ended the quarter with a 30+ day delinquency rate of 7.3%, up 40 basis points from the second quarter, consistent with normal seasonal trends. Our higher-quality originations from credit tightening have kept our first payment default and early-stage delinquency rates below 2019 levels. Recent data indicates a strong labor market, moderating inflation, and real wage growth, but we remain selective in making loans within our tightened credit box. However, with ample liquidity, significant borrowing capacity, and a large addressable market, we stand ready to lean back into growth when justified by the economic conditions and the overall performance of our loan portfolio,” said Robert Beck, President and CEO of Regional Management Corp.