- Net income of $12.9 million and diluted earnings per share of $1.30, up 30% and 33% year-over-year, respectively -
- Record originations and 13.1% year-over-year portfolio growth drive record revenue -
- Annualized operating expense ratio of 12.4%, an all-time best -
Regional Management Corp. (NYSE:RM), a diversified consumer finance company, today announced results for the fourth quarter ended December 31, 2025.
"We delivered strong financial and operating results in the fourth quarter and finished 2025 with excellent momentum," said Lakhbir S. Lamba, President and Chief Executive Officer of Regional Management Corp. "Fourth quarter net income increased more than 30% year-over-year, driven by solid portfolio growth, record quarterly revenue, improving underlying credit performance, and continued expense discipline. For the full year, we generated net income of $44.4 million, while growing our total portfolio by 13% year-over-year."
"As I step into this role, I am encouraged by the strength of the platform we have built and the opportunities ahead," added Mr. Lamba. "Our auto-secured portfolio continues to grow rapidly with compelling credit performance and returns, and we are expanding thoughtfully into new markets. At the same time, we are investing in our people, technology, data and analytics, and credit risk management to drive sustainable, profitable growth and higher return on equity. Regional enters 2026 from a position of strength, and I am confident in our ability to continue creating long-term value for our customers, communities, and shareholders."
Fourth Quarter 2025 Highlights
- Net income for the fourth quarter of 2025 was $12.9 million and diluted earnings per share was $1.30, up 30.2% and 32.7% year-over-year, respectively.
-
Net finance receivables as of December 31, 2025 were a record $2.1 billion, an improvement of $247.7 million, or 13.1%, from the prior-year period, driven by strong performance from digital leads, demand for auto-secured products, and 17 new branches opened in 2025.
- Record total originations of $537.3 million, up 12.9% from the prior-year period, while maintaining prudent underwriting criteria.
-
Large loan net finance receivables of $1.6 billion increased $256.4 million, or 19.2%, from the prior-year period and represented 74.4% of the total loan portfolio, compared to 70.6% in the prior-year period.
- Auto-secured net finance receivables of $294.3 million increased $87.7 million, or 42.4%, from the prior-year period and represented 13.7% of the total loan portfolio, compared to 10.9% in the prior-year period.
- Small loan net finance receivables of $547.0 million decreased $8.7 million, or 1.6%, from the prior-year period and represented 25.6% of the total loan portfolio, compared to 29.4% in the prior-year period.
- Net finance receivables with annual percentage rates (APRs) above 36% increased by 9.3% year-over-year and represented 17.9% of the portfolio, compared to 18.5% in the prior-year period.
- Customer accounts improved by 2.7% from the prior-year period.
-
Record quarterly total revenue of $169.7 million, an increase of $14.9 million, or 9.6%, from the prior-year period, primarily due to growth in average net finance receivables.
- Total revenue yield (annualized total revenue as a percentage of average net finance receivables) for the fourth quarter of 2025 was 32.5%, compared to 33.4% in the prior-year period, a decrease of 90 basis points due to product mix shift and a 20 basis point benefit in the prior-year period from the release of personal property insurance reserves related to hurricane activity.
- Interest and fee yield (annualized interest and fee income as a percentage of average net finance receivables) decreased 50 basis points from the prior-year period due to product mix shift.
-
Provision for credit losses for the fourth quarter of 2025 was $66.4 million, an increase of $8.8 million, or 15.2%, from the prior-year period, driven by portfolio growth.
- The net credit loss rate (annualized net credit losses as a percentage of average net finance receivables) for the fourth quarter of 2025 was 11.0%, a 20 basis point increase compared to 10.8% in the prior-year period but a 30 basis point year-over-year improvement after adjusting for the prior-year 50 basis point impact from disaster deferrals.
- The provision for credit losses for the fourth quarter of 2025 included a sequential reserve increase of $8.9 million due to portfolio growth occurring during the fourth quarter of 2025.
- The allowance for credit losses was $220.9 million as of December 31, 2025, or 10.3% of net finance receivables, stable sequentially and an improvement compared to 10.5% in the prior-year period, which included an estimated 10 basis points related to prior-year hurricane activity.
- As of December 31, 2025, 30+ day contractual delinquencies totaled $161.2 million, or 7.5% of net finance receivables, a 50 basis point increase sequentially due to seasonality and a 20 basis point improvement from the prior-year period.
- General and administrative expenses for the fourth quarter of 2025 were $64.5 million, an improvement of $0.1 million from the prior-year period. The operating expense ratio (annualized general and administrative expenses as a percentage of average net finance receivables) for the fourth quarter of 2025 was 12.4%, an all-time best. The ratio reflected improvements of 40 basis points and 160 basis points from 12.8% and 14.0% in the prior-quarter and prior-year periods, respectively.
- In the fourth quarter of 2025, the company repurchased 196,999 shares of its common stock at a weighted-average price of $38.07 per share under the company's stock repurchase program.
First Quarter 2026 Dividend
The company's Board of Directors has declared a dividend of $0.30 per common share for the first quarter of 2026. The dividend will be paid on March 12, 2026 to shareholders of record as of the close of business on February 19, 2026. The declaration and payment of any future dividend is subject to the discretion of the Board of Directors and will depend on a variety of factors, including the company's financial condition and results of operations.
Liquidity and Capital Resources
As of December 31, 2025, the company had net finance receivables of $2.1 billion and debt of $1.7 billion. The debt consisted of:
- $188.6 million on the company's $355 million senior revolving credit facility,
- $81.6 million on the company's aggregate $425 million revolving warehouse credit facilities, and
- $1.4 billion through the company's asset-backed securitizations.
As of December 31, 2025, the company's unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was $511 million, or 65.6%, and the company had available liquidity of $149.2 million, including unrestricted cash on hand and immediate availability to draw down cash from its revolving credit facilities. As of December 31, 2025, the company's fixed-rate debt as a percentage of total debt was 84%, with a weighted-average coupon of 4.7% and a weighted-average revolving duration of 1.1 years.
The company had a funded debt-to-equity ratio of 4.4 to 1.0 and a stockholders' equity ratio of 17.7%, each as of December 31, 2025. On a non-GAAP basis, the company had a funded debt-to-tangible equity ratio of 4.8 to 1.0, as of December 31, 2025. Please refer to the reconciliations of non-GAAP measures to comparable GAAP measures included at the end of this press release.
Conference Call Information
Regional Management Corp. will host a conference call and webcast today at 5:00 PM ET to discuss these results.
The dial-in number for the conference call is (877) 407-0752 (toll-free) or (201) 389-0912 (international). Please dial the number 10 minutes prior to the scheduled start time.
*** A supplemental slide presentation will be made available on Regional's website prior to the earnings call at www.RegionalManagement.com. ***
In addition, a live webcast of the conference call will be available on Regional's website at www.RegionalManagement.com.
A webcast replay of the call will be available at www.RegionalManagement.com for one year following the call.
About Regional Management Corp.
Regional Management Corp. (NYSE:RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name "Regional Finance" online and in branch locations in 19 states across the United States. Most of its loan products are secured, and each is structured on a fixed-rate, fixed-term basis with fully amortizing equal monthly installment payments, repayable at any time without penalty. Regional Management sources loans through its multiple channel platform, which includes branches, centrally managed direct mail campaigns, digital partners, and its consumer website. For more information, please visit www.RegionalManagement.com.
Forward-Looking Statements
This press release may contain various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead represent Regional Management Corp.'s expectations or beliefs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlooks or future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. Words such as "may," "will," "should," "likely," "anticipates," "expects," "intends," "plans," "projects," "believes," "estimates," "outlook," and similar expressions may be used to identify these forward-looking statements. Such forward-looking statements speak only as of the date on which they were made and are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. As a result, actual performance and results may differ materially from those contemplated by these forward-looking statements. Therefore, investors should not place undue reliance on forward-looking statements.
Factors that could cause actual results or performance to differ from the expectations expressed or implied in forward-looking statements include, but are not limited to, the following: managing growth effectively, implementing Regional Management's growth strategy, and opening new branches as planned; Regional Management's convenience check strategy; Regional Management's policies and procedures for underwriting, processing, and servicing loans; Regional Management's ability to collect on its loan portfolio; Regional Management's insurance operations; exposure to credit risk and repayment risk, which risks may increase in light of adverse or recessionary economic conditions; the implementation of evolving underwriting models and processes, including as to the effectiveness of Regional Management's custom scorecards; changes in the competitive environment in which Regional Management operates or a decrease in the demand for its products; the geographic concentration of Regional Management's loan portfolio; the failure of third-party service providers, including those providing information technology products; changes in economic conditions in the markets Regional Management serves, including levels of unemployment and bankruptcies; impacts of a prolonged U.S. federal government shutdown; the ability to achieve successful acquisitions and strategic alliances; the ability to make technological improvements as quickly as competitors; security breaches, cyber-attacks, failures in information systems, or fraudulent activity; the ability to originate loans; reliance on information technology resources and providers, including the risk of prolonged system outages; changes in current revenue and expense trends, including trends affecting delinquencies and credit losses; any future public health crises, including the impact of such crisis on our operations and financial condition; changes in operating and administrative expenses; the departure, transition, or replacement of key personnel; the ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support Regional Management's operations and initiatives; changes in interest rates; existing sources of liquidity may become insufficient or access to these sources may become unexpectedly restricted; exposure to financial risk due to asset-backed securitization transactions; risks related to regulation and legal proceedings, including changes in laws or regulations or in the interpretation or enforcement of laws or regulations; changes in accounting standards, rules, and interpretations and the failure of related assumptions and estimates; the impact of changes in tax laws and guidance, including the timing and amount of revenues that may be recognized; risks related to the ownership of Regional Management's common stock, including volatility in the market price of shares of Regional Management's common stock; the timing and amount of future cash dividend payments; and anti-takeover provisions in Regional Management's charter documents and applicable state law.
The foregoing factors and others are discussed in greater detail in Regional Management's filings with the Securities and Exchange Commission. Regional Management will not update or revise forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments, or otherwise, except as required by law. Regional Management is not responsible for changes made to this document by wire services or Internet services.
Regional Management Corp. and Subsidiaries Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share amounts) |
||||||||||||||||||||||||
|
|
|
|
|
Better (Worse) |
|
|
|
|
|
Better (Worse) |
|
||||||||||||
|
4Q 25 |
|
4Q 24 |
|
$ |
|
% |
|
FY 25 |
|
FY 24 |
|
$ |
|
% |
|
||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest and fee income |
$ |
153,029 |
|
$ |
138,246 |
|
$ |
14,783 |
|
|
10.7 |
% |
$ |
578,949 |
|
$ |
528,894 |
|
$ |
50,055 |
|
|
9.5 |
% |
Insurance income, net |
|
11,386 |
|
|
11,792 |
|
|
(406 |
) |
|
(3.4 |
)% |
|
45,573 |
|
|
40,695 |
|
|
4,878 |
|
|
12.0 |
% |
Other income |
|
5,287 |
|
|
4,794 |
|
|
493 |
|
|
10.3 |
% |
|
21,076 |
|
|
18,914 |
|
|
2,162 |
|
|
11.4 |
% |
Total revenue |
|
169,702 |
|
|
154,832 |
|
|
14,870 |
|
|
9.6 |
% |
|
645,598 |
|
|
588,503 |
|
|
57,095 |
|
|
9.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Provision for credit losses |
|
66,379 |
|
|
57,626 |
|
|
(8,753 |
) |
|
(15.2 |
)% |
|
245,432 |
|
|
212,200 |
|
|
(33,232 |
) |
|
(15.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Personnel |
|
40,394 |
|
|
40,549 |
|
|
155 |
|
|
0.4 |
% |
|
159,637 |
|
|
153,789 |
|
|
(5,848 |
) |
|
(3.8 |
)% |
Occupancy |
|
7,227 |
|
|
6,748 |
|
|
(479 |
) |
|
(7.1 |
)% |
|
28,204 |
|
|
25,823 |
|
|
(2,381 |
) |
|
(9.2 |
)% |
Marketing |
|
3,874 |
|
|
4,777 |
|
|
903 |
|
|
18.9 |
% |
|
18,551 |
|
|
19,006 |
|
|
455 |
|
|
2.4 |
% |
Other |
|
13,024 |
|
|
12,572 |
|
|
(452 |
) |
|
(3.6 |
)% |
|
51,183 |
|
|
49,080 |
|
|
(2,103 |
) |
|
(4.3 |
)% |
Total general and administrative |
|
64,519 |
|
|
64,646 |
|
|
127 |
|
|
0.2 |
% |
|
257,575 |
|
|
247,698 |
|
|
(9,877 |
) |
|
(4.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
22,646 |
|
|
19,805 |
|
|
(2,841 |
) |
|
(14.3 |
)% |
|
84,814 |
|
|
74,530 |
|
|
(10,284 |
) |
|
(13.8 |
)% |
Income before income taxes |
|
16,158 |
|
|
12,755 |
|
|
3,403 |
|
|
26.7 |
% |
|
57,777 |
|
|
54,075 |
|
|
3,702 |
|
|
6.8 |
% |
Income taxes |
|
3,249 |
|
|
2,841 |
|
|
(408 |
) |
|
(14.4 |
)% |
|
13,365 |
|
|
12,848 |
|
|
(517 |
) |
|
(4.0 |
)% |
Net income |
$ |
12,909 |
|
$ |
9,914 |
|
$ |
2,995 |
|
|
30.2 |
% |
$ |
44,412 |
|
$ |
41,227 |
|
$ |
3,185 |
|
|
7.7 |
% |
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.40 |
|
$ |
1.02 |
|
$ |
0.38 |
|
|
37.3 |
% |
$ |
4.71 |
|
$ |
4.28 |
|
$ |
0.43 |
|
|
10.0 |
% |
Diluted |
$ |
1.30 |
|
$ |
0.98 |
|
$ |
0.32 |
|
|
32.7 |
% |
$ |
4.45 |
|
$ |
4.14 |
|
$ |
0.31 |
|
|
7.5 |
% |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
9,233 |
|
|
9,691 |
|
|
458 |
|
|
4.7 |
% |
|
9,428 |
|
|
9,640 |
|
|
212 |
|
|
2.2 |
% |
Diluted |
|
9,941 |
|
|
10,128 |
|
|
187 |
|
|
1.8 |
% |
|
9,984 |
|
|
9,957 |
|
|
(27 |
) |
|
(0.3 |
)% |
Return on average assets (annualized) |
|
2.5 |
% |
|
2.1 |
% |
|
|
|
|
|
2.3 |
% |
|
2.3 |
% |
|
|
|
|
||||
Return on average equity (annualized) |
|
13.8 |
% |
|
11.1 |
% |
|
|
|
|
|
12.2 |
% |
|
12.0 |
% |
|
|
|
|
||||
Regional Management Corp. and Subsidiaries Consolidated Balance Sheets (Unaudited) (dollars in thousands, except par value amounts) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
Increase (Decrease) |
|
||||||
|
4Q 25 |
|
4Q 24 |
|
$ |
|
% |
|
||||
Assets |
|
|
|
|
|
|
|
|
||||
Cash |
$ |
3,823 |
|
$ |
3,951 |
|
$ |
(128 |
) |
|
(3.2 |
)% |
Net finance receivables |
|
2,140,199 |
|
|
1,892,535 |
|
|
247,664 |
|
|
13.1 |
% |
Unearned insurance premiums |
|
(52,896 |
) |
|
(48,068 |
) |
|
(4,828 |
) |
|
(10.0 |
)% |
Allowance for credit losses |
|
(220,900 |
) |
|
(199,500 |
) |
|
(21,400 |
) |
|
(10.7 |
)% |
Net finance receivables, less unearned insurance premiums and allowance for credit losses |
|
1,866,403 |
|
|
1,644,967 |
|
|
221,436 |
|
|
13.5 |
% |
Restricted cash |
|
94,174 |
|
|
131,684 |
|
|
(37,510 |
) |
|
(28.5 |
)% |
Lease assets |
|
43,828 |
|
|
38,442 |
|
|
5,386 |
|
|
14.0 |
% |
Intangible assets |
|
31,781 |
|
|
24,524 |
|
|
7,257 |
|
|
29.6 |
% |
Restricted available-for-sale investments |
|
24,211 |
|
|
21,712 |
|
|
2,499 |
|
|
11.5 |
% |
Property and equipment |
|
13,156 |
|
|
13,677 |
|
|
(521 |
) |
|
(3.8 |
)% |
Deferred tax assets, net |
|
— |
|
|
9,286 |
|
|
(9,286 |
) |
|
(100.0 |
)% |
Other assets |
|
26,554 |
|
|
20,866 |
|
|
5,688 |
|
|
27.3 |
% |
Total assets |
$ |
2,103,930 |
|
$ |
1,909,109 |
|
$ |
194,821 |
|
|
10.2 |
% |
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
||||
Liabilities: |
|
|
|
|
|
|
|
|
||||
Debt |
$ |
1,650,764 |
|
$ |
1,478,336 |
|
$ |
172,428 |
|
|
11.7 |
% |
Unamortized debt issuance costs |
|
(8,591 |
) |
|
(6,338 |
) |
|
(2,253 |
) |
|
(35.5 |
)% |
Net debt |
|
1,642,173 |
|
|
1,471,998 |
|
|
170,175 |
|
|
11.6 |
% |
Lease liabilities |
|
45,968 |
|
|
40,579 |
|
|
5,389 |
|
|
13.3 |
% |
Deferred tax liabilities, net |
|
3,345 |
|
|
— |
|
|
3,345 |
|
|
100.0 |
% |
Other liabilities |
|
39,352 |
|
|
39,454 |
|
|
(102 |
) |
|
(0.3 |
)% |
Total liabilities |
|
1,730,838 |
|
|
1,552,031 |
|
|
178,807 |
|
|
11.5 |
% |
Stockholders' equity: |
|
|
|
|
|
|
|
|
||||
Preferred stock ($0.10 par value, 100,000 shares authorized, none issued or outstanding) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Common stock ($0.10 par value, 1,000,000 shares authorized, 15,168 shares issued and 9,554 shares outstanding at December 31, 2025 and 14,921 shares issued and 10,010 shares outstanding at December 31, 2024) |
|
1,517 |
|
|
1,492 |
|
|
25 |
|
|
1.7 |
% |
Additional paid-in capital |
|
138,666 |
|
|
130,725 |
|
|
7,941 |
|
|
6.1 |
% |
Retained earnings |
|
410,721 |
|
|
378,482 |
|
|
32,239 |
|
|
8.5 |
% |
Accumulated other comprehensive income (loss) |
|
(2 |
) |
|
62 |
|
|
(64 |
) |
|
(103.2 |
)% |
Treasury stock (5,614 shares at December 31, 2025 and 4,911 shares at
|
|
(177,810 |
) |
|
(153,683 |
) |
|
(24,127 |
) |
|
(15.7 |
)% |
Total stockholders' equity |
|
373,092 |
|
|
357,078 |
|
|
16,014 |
|
|
4.5 |
% |
Total liabilities and stockholders' equity |
$ |
2,103,930 |
|
$ |
1,909,109 |
|
$ |
194,821 |
|
|
10.2 |
% |
Regional Management Corp. and Subsidiaries Selected Financial Data (Unaudited) (dollars in thousands, except per share amounts) |
||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||
|
|
Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
4Q 25 |
|
|
3Q 25 |
|
|
QoQ $ Inc (Dec) |
|
|
QoQ % Inc (Dec) |
|
|
4Q 24 |
|
|
YoY $ Inc (Dec) |
|
|
YoY % Inc (Dec) |
|
|||||||
Large loans |
|
$ |
1,593,171 |
|
|
$ |
1,512,140 |
|
|
$ |
81,031 |
|
|
|
5.4 |
% |
|
$ |
1,336,780 |
|
|
$ |
256,391 |
|
|
|
19.2 |
% |
Small loans |
|
|
547,028 |
|
|
|
540,877 |
|
|
|
6,151 |
|
|
|
1.1 |
% |
|
|
555,755 |
|
|
|
(8,727 |
) |
|
|
(1.6 |
)% |
Total |
|
$ |
2,140,199 |
|
|
$ |
2,053,017 |
|
|
$ |
87,182 |
|
|
|
4.2 |
% |
|
$ |
1,892,535 |
|
|
$ |
247,664 |
|
|
|
13.1 |
% |
Number of branches |
|
|
353 |
|
|
|
349 |
|
|
|
4 |
|
|
|
1.1 |
% |
|
|
344 |
|
|
|
9 |
|
|
|
2.6 |
% |
Net finance receivables per branch |
|
$ |
6,063 |
|
|
$ |
5,883 |
|
|
$ |
180 |
|
|
|
3.1 |
% |
|
$ |
5,502 |
|
|
$ |
561 |
|
|
|
10.2 |
% |
|
|
Average Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
4Q 25 |
|
|
3Q 25 |
|
|
QoQ $ Inc (Dec) |
|
|
QoQ % Inc (Dec) |
|
|
4Q 24 |
|
|
YoY $ Inc (Dec) |
|
|
YoY % Inc (Dec) |
|
|||||||
Large loans |
|
$ |
1,552,956 |
|
|
$ |
1,460,187 |
|
|
$ |
92,769 |
|
|
|
6.4 |
% |
|
$ |
1,315,375 |
|
|
$ |
237,581 |
|
|
|
18.1 |
% |
Small loans |
|
|
535,316 |
|
|
|
541,201 |
|
|
|
(5,885 |
) |
|
|
(1.1 |
)% |
|
|
537,463 |
|
|
|
(2,147 |
) |
|
|
(0.4 |
)% |
Total |
|
$ |
2,088,272 |
|
|
$ |
2,001,388 |
|
|
$ |
86,884 |
|
|
|
4.3 |
% |
|
$ |
1,852,838 |
|
|
$ |
235,434 |
|
|
|
12.7 |
% |
|
Revenue Yields (1) |
|
||||||||||||||||||
|
|
4Q 25 |
|
|
3Q 25 |
|
|
QoQ Inc (Dec) |
|
|
4Q 24 |
|
|
YoY Inc (Dec) |
|
|||||
Large loans |
|
|
27.1 |
% |
|
|
27.1 |
% |
|
|
0.0 |
% |
|
|
26.8 |
% |
|
|
0.3 |
% |
Small loans |
|
|
35.8 |
% |
|
|
36.7 |
% |
|
|
(0.9 |
)% |
|
|
37.4 |
% |
|
|
(1.6 |
)% |
Total interest and fee yield |
|
|
29.3 |
% |
|
|
29.7 |
% |
|
|
(0.4 |
)% |
|
|
29.8 |
% |
|
|
(0.5 |
)% |
Total revenue yield |
|
|
32.5 |
% |
|
|
33.1 |
% |
|
|
(0.6 |
)% |
|
|
33.4 |
% |
|
|
(0.9 |
)% |
(1) Annualized as a percentage of average net finance receivables. |
||||||||||||||||||||
|
|
Components of Increase in Interest and Fee Income |
|
|||||||||||||
|
|
4Q 25 Compared to 4Q 24 |
|
|||||||||||||
|
|
Increase (Decrease) |
|
|||||||||||||
|
|
Volume |
|
|
Rate |
|
|
Volume & Rate |
|
|
Total |
|
||||
Large loans |
|
$ |
15,904 |
|
|
$ |
1,026 |
|
|
$ |
186 |
|
|
$ |
17,116 |
|
Small loans |
|
|
(200 |
) |
|
|
(2,141 |
) |
|
|
8 |
|
|
|
(2,333 |
) |
Product mix |
|
|
1,862 |
|
|
|
(1,355 |
) |
|
|
(507 |
) |
|
|
— |
|
Total |
|
$ |
17,566 |
|
|
$ |
(2,470 |
) |
|
$ |
(313 |
) |
|
$ |
14,783 |
|
|
|
Loans Originated (1) |
|
|||||||||||||||||||||||||
|
|
4Q 25 |
|
|
3Q 25 |
|
|
QoQ $ Inc (Dec) |
|
|
QoQ % Inc (Dec) |
|
|
4Q 24 |
|
|
YoY $ Inc (Dec) |
|
|
YoY % Inc (Dec) |
|
|||||||
Large loans |
|
$ |
364,194 |
|
|
$ |
363,055 |
|
|
$ |
1,139 |
|
|
|
0.3 |
% |
|
$ |
281,632 |
|
|
$ |
82,562 |
|
|
|
29.3 |
% |
Small loans |
|
|
173,122 |
|
|
|
159,210 |
|
|
|
13,912 |
|
|
|
8.7 |
% |
|
|
194,268 |
|
|
|
(21,146 |
) |
|
|
(10.9 |
)% |
Total |
|
$ |
537,316 |
|
|
$ |
522,265 |
|
|
$ |
15,051 |
|
|
|
2.9 |
% |
|
$ |
475,900 |
|
|
$ |
61,416 |
|
|
|
12.9 |
% |
(1) Represents the principal balance of loan originations and refinancings. |
||||||||||||||||||||||||||||
|
|
Other Key Metrics |
|
|||||||||
|
|
4Q 25 |
|
|
3Q 25 |
|
|
4Q 24 |
|
|||
Net credit losses |
|
$ |
57,479 |
|
|
$ |
51,274 |
|
|
$ |
50,226 |
|
Percentage of average net finance receivables (annualized) |
|
|
11.0 |
% |
|
|
10.2 |
% |
|
|
10.8 |
% |
Provision for credit losses |
|
$ |
66,379 |
|
|
$ |
60,474 |
|
|
$ |
57,626 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.7 |
% |
|
|
12.1 |
% |
|
|
12.4 |
% |
Percentage of total revenue |
|
|
39.1 |
% |
|
|
36.5 |
% |
|
|
37.2 |
% |
General and administrative expenses |
|
$ |
64,519 |
|
|
$ |
64,068 |
|
|
$ |
64,646 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.4 |
% |
|
|
12.8 |
% |
|
|
14.0 |
% |
Percentage of total revenue |
|
|
38.0 |
% |
|
|
38.7 |
% |
|
|
41.8 |
% |
Same store results (1): |
|
|
|
|
|
|
|
|
|
|||
Net finance receivables at period-end |
|
$ |
2,087,903 |
|
|
$ |
2,000,665 |
|
|
$ |
1,880,251 |
|
Net finance receivable growth rate |
|
|
10.9 |
% |
|
|
9.9 |
% |
|
|
6.1 |
% |
Number of branches in calculation |
|
|
336 |
|
|
|
333 |
|
|
|
337 |
|
(1) Same store sales reflect the change in year-over-year sales for the comparable branch base. The comparable branch base includes those branches open for at least one year. |
||||||||||||
|
|
Contractual Delinquency |
|
|||||||||||||||||||||
|
|
4Q 25 |
|
|
3Q 25 |
|
|
4Q 24 |
|
|||||||||||||||
Allowance for credit losses |
|
$ |
220,900 |
|
|
|
10.3 |
% |
|
$ |
212,000 |
|
|
|
10.3 |
% |
|
$ |
199,500 |
|
|
|
10.5 |
% |
Current |
|
|
1,809,107 |
|
|
|
84.5 |
% |
|
|
1,740,356 |
|
|
|
84.8 |
% |
|
|
1,590,381 |
|
|
|
84.0 |
% |
1 to 29 days past due |
|
|
169,858 |
|
|
|
8.0 |
% |
|
|
168,380 |
|
|
|
8.2 |
% |
|
|
156,312 |
|
|
|
8.3 |
% |
Delinquent accounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
30 to 59 days |
|
|
41,235 |
|
|
|
1.9 |
% |
|
|
40,100 |
|
|
|
1.9 |
% |
|
|
36,948 |
|
|
|
1.9 |
% |
60 to 89 days |
|
|
37,158 |
|
|
|
1.7 |
% |
|
|
31,914 |
|
|
|
1.6 |
% |
|
|
35,242 |
|
|
|
1.9 |
% |
90 to 119 days |
|
|
30,818 |
|
|
|
1.5 |
% |
|
|
26,304 |
|
|
|
1.2 |
% |
|
|
28,085 |
|
|
|
1.5 |
% |
120 to 149 days |
|
|
27,765 |
|
|
|
1.3 |
% |
|
|
23,722 |
|
|
|
1.2 |
% |
|
|
23,987 |
|
|
|
1.3 |
% |
150 to 179 days |
|
|
24,258 |
|
|
|
1.1 |
% |
|
|
22,241 |
|
|
|
1.1 |
% |
|
|
21,580 |
|
|
|
1.1 |
% |
Total delinquency |
|
$ |
161,234 |
|
|
|
7.5 |
% |
|
$ |
144,281 |
|
|
|
7.0 |
% |
|
$ |
145,842 |
|
|
|
7.7 |
% |
Total net finance receivables |
|
$ |
2,140,199 |
|
|
|
100.0 |
% |
|
$ |
2,053,017 |
|
|
|
100.0 |
% |
|
$ |
1,892,535 |
|
|
|
100.0 |
% |
1 day and over past due |
|
$ |
331,092 |
|
|
|
15.5 |
% |
|
$ |
312,661 |
|
|
|
15.2 |
% |
|
$ |
302,154 |
|
|
|
16.0 |
% |
|
|
Contractual Delinquency by Product |
|
|||||||||||||||||||||
|
|
4Q 25 |
|
|
3Q 25 |
|
|
4Q 24 |
|
|||||||||||||||
Large loans |
|
$ |
99,956 |
|
|
|
6.3 |
% |
|
$ |
85,865 |
|
|
|
5.7 |
% |
|
$ |
88,054 |
|
|
|
6.6 |
% |
Small loans |
|
|
61,278 |
|
|
|
11.2 |
% |
|
|
58,416 |
|
|
|
10.8 |
% |
|
|
57,788 |
|
|
|
10.4 |
% |
Total |
|
$ |
161,234 |
|
|
|
7.5 |
% |
|
$ |
144,281 |
|
|
|
7.0 |
% |
|
$ |
145,842 |
|
|
|
7.7 |
% |
|
Income Statement Quarterly Trend |
|
|||||||||||||||||||
|
4Q 24 |
|
1Q 25 |
|
2Q 25 |
|
3Q 25 |
|
4Q 25 |
|
QoQ $ B(W) |
|
YoY $ B(W) |
|
|||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest and fee income |
$ |
138,246 |
|
$ |
136,553 |
|
$ |
140,695 |
|
$ |
148,672 |
|
$ |
153,029 |
|
$ |
4,357 |
|
$ |
14,783 |
|
Insurance income, net |
|
11,792 |
|
|
11,297 |
|
|
11,499 |
|
|
11,391 |
|
|
11,386 |
|
|
(5 |
) |
|
(406 |
) |
Other income |
|
4,794 |
|
|
5,117 |
|
|
5,248 |
|
|
5,424 |
|
|
5,287 |
|
|
(137 |
) |
|
493 |
|
Total revenue |
|
154,832 |
|
|
152,967 |
|
|
157,442 |
|
|
165,487 |
|
|
169,702 |
|
|
4,215 |
|
|
14,870 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Provision for credit losses |
|
57,626 |
|
|
57,992 |
|
|
60,587 |
|
|
60,474 |
|
|
66,379 |
|
|
(5,905 |
) |
|
(8,753 |
) |
Personnel |
|
40,549 |
|
|
41,142 |
|
|
38,584 |
|
|
39,517 |
|
|
40,394 |
|
|
(877 |
) |
|
155 |
|
Occupancy |
|
6,748 |
|
|
6,906 |
|
|
6,911 |
|
|
7,160 |
|
|
7,227 |
|
|
(67 |
) |
|
(479 |
) |
Marketing |
|
4,777 |
|
|
5,406 |
|
|
5,059 |
|
|
4,212 |
|
|
3,874 |
|
|
338 |
|
|
903 |
|
Other |
|
12,572 |
|
|
12,589 |
|
|
12,391 |
|
|
13,179 |
|
|
13,024 |
|
|
155 |
|
|
(452 |
) |
Total general and administrative |
|
64,646 |
|
|
66,043 |
|
|
62,945 |
|
|
64,068 |
|
|
64,519 |
|
|
(451 |
) |
|
127 |
|
Interest expense |
|
19,805 |
|
|
19,771 |
|
|
20,426 |
|
|
21,971 |
|
|
22,646 |
|
|
(675 |
) |
|
(2,841 |
) |
Income before income taxes |
|
12,755 |
|
|
9,161 |
|
|
13,484 |
|
|
18,974 |
|
|
16,158 |
|
|
(2,816 |
) |
|
3,403 |
|
Income taxes |
|
2,841 |
|
|
2,154 |
|
|
3,344 |
|
|
4,618 |
|
|
3,249 |
|
|
1,369 |
|
|
(408 |
) |
Net income |
$ |
9,914 |
|
$ |
7,007 |
|
$ |
10,140 |
|
$ |
14,356 |
|
$ |
12,909 |
|
$ |
(1,447 |
) |
$ |
2,995 |
|
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
1.02 |
|
$ |
0.73 |
|
$ |
1.07 |
|
$ |
1.53 |
|
$ |
1.40 |
|
$ |
(0.13 |
) |
$ |
0.38 |
|
Diluted |
$ |
0.98 |
|
$ |
0.70 |
|
$ |
1.03 |
|
$ |
1.42 |
|
$ |
1.30 |
|
$ |
(0.12 |
) |
$ |
0.32 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
9,691 |
|
|
9,610 |
|
|
9,504 |
|
|
9,370 |
|
|
9,233 |
|
|
137 |
|
|
458 |
|
Diluted |
|
10,128 |
|
|
10,025 |
|
|
9,843 |
|
|
10,133 |
|
|
9,941 |
|
|
192 |
|
|
187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Balance Sheet & Other Key Metrics Quarterly Trends |
|
|||||||||||||||||||
|
4Q 24 |
|
1Q 25 |
|
2Q 25 |
|
3Q 25 |
|
4Q 25 |
|
QoQ $ Inc (Dec) |
|
YoY $ Inc (Dec) |
|
|||||||
Total assets |
$ |
1,909,109 |
|
$ |
1,900,683 |
|
$ |
1,967,131 |
|
$ |
2,028,266 |
|
$ |
2,103,930 |
|
$ |
75,664 |
|
$ |
194,821 |
|
Net finance receivables |
$ |
1,892,535 |
|
$ |
1,890,351 |
|
$ |
1,960,364 |
|
$ |
2,053,017 |
|
$ |
2,140,199 |
|
$ |
87,182 |
|
$ |
247,664 |
|
Allowance for credit losses |
$ |
199,500 |
|
$ |
199,100 |
|
$ |
202,800 |
|
$ |
212,000 |
|
$ |
220,900 |
|
$ |
8,900 |
|
$ |
21,400 |
|
Debt |
$ |
1,478,336 |
|
$ |
1,477,860 |
|
$ |
1,509,133 |
|
$ |
1,581,992 |
|
$ |
1,650,764 |
|
$ |
68,772 |
|
$ |
172,428 |
|
Interest and fee yield (1) |
|
29.8 |
% |
|
28.9 |
% |
|
29.4 |
% |
|
29.7 |
% |
|
29.3 |
% |
|
(0.4 |
)% |
|
(0.5 |
)% |
Efficiency ratio (2) |
|
41.8 |
% |
|
43.2 |
% |
|
40.0 |
% |
|
38.7 |
% |
|
38.0 |
% |
|
(0.7 |
)% |
|
(3.8 |
)% |
Operating expense ratio (3) |
|
14.0 |
% |
|
14.0 |
% |
|
13.2 |
% |
|
12.8 |
% |
|
12.4 |
% |
|
(0.4 |
)% |
|
(1.6 |
)% |
Delinquency rate (4) |
|
7.7 |
% |
|
7.1 |
% |
|
6.6 |
% |
|
7.0 |
% |
|
7.5 |
% |
|
0.5 |
% |
|
(0.2 |
)% |
Net credit loss rate (5) |
|
10.8 |
% |
|
12.4 |
% |
|
11.9 |
% |
|
10.2 |
% |
|
11.0 |
% |
|
0.8 |
% |
|
0.2 |
% |
Book value per share |
$ |
35.67 |
|
$ |
35.48 |
|
$ |
36.43 |
|
$ |
37.94 |
|
$ |
39.05 |
|
$ |
1.11 |
|
$ |
3.38 |
|
(1) Annualized interest and fee income as a percentage of average net finance receivables. |
|||||||||||||||||||||
(2) General and administrative expenses as a percentage of total revenue. |
|||||||||||||||||||||
(3) Annualized general and administrative expenses as a percentage of average net finance receivables. |
|||||||||||||||||||||
(4) Delinquent loans outstanding as a percentage of ending net finance receivables. |
|||||||||||||||||||||
(5) Annualized net credit losses as a percentage of average net finance receivables. |
|||||||||||||||||||||
|
|
Average Net Finance Receivables |
|
|||||||||||||
|
|
FY 25 |
|
|
FY 24 |
|
|
YoY $ Inc (Dec) |
|
|
YoY % Inc (Dec) |
|
||||
Large loans |
|
$ |
1,432,174 |
|
|
$ |
1,278,683 |
|
|
$ |
153,491 |
|
|
|
12.0 |
% |
Small loans |
|
|
541,363 |
|
|
|
509,798 |
|
|
|
31,565 |
|
|
|
6.2 |
% |
Total |
|
$ |
1,973,537 |
|
|
$ |
1,788,481 |
|
|
$ |
185,056 |
|
|
|
10.3 |
% |
|
|
Revenue Yields |
|
|||||||||
|
|
FY 25 |
|
|
FY 24 |
|
|
YoY Inc (Dec) |
|
|||
Large loans |
|
|
26.7 |
% |
|
|
26.4 |
% |
|
|
0.3 |
% |
Small loans |
|
|
36.2 |
% |
|
|
37.5 |
% |
|
|
(1.3 |
)% |
Total interest and fee yield |
|
|
29.3 |
% |
|
|
29.6 |
% |
|
|
(0.3 |
)% |
Total revenue yield |
|
|
32.7 |
% |
|
|
32.9 |
% |
|
|
(0.2 |
)% |
|
|
Components of Increase in Interest and Fee Income |
|
|||||||||||||
|
|
FY 25 Compared to FY 24 |
|
|||||||||||||
|
|
Increase (Decrease) |
|
|||||||||||||
|
|
Volume |
|
|
Rate |
|
|
Volume & Rate |
|
|
Total |
|
||||
Large loans |
|
$ |
40,538 |
|
|
$ |
4,189 |
|
|
$ |
503 |
|
|
$ |
45,230 |
|
Small loans |
|
|
11,838 |
|
|
|
(6,604 |
) |
|
|
(409 |
) |
|
|
4,825 |
|
Product mix |
|
|
2,349 |
|
|
|
(1,817 |
) |
|
|
(532 |
) |
|
|
— |
|
Total |
|
$ |
54,725 |
|
|
$ |
(4,232 |
) |
|
$ |
(438 |
) |
|
$ |
50,055 |
|
|
|
Loans Originated (1) |
|
|||||||||||||
|
|
FY 25 |
|
|
FY 24 |
|
|
FY $ Inc (Dec) |
|
|
FY % Inc (Dec) |
|
||||
Large loans |
|
$ |
1,305,531 |
|
|
$ |
973,048 |
|
|
$ |
332,483 |
|
|
|
34.2 |
% |
Small loans |
|
|
656,499 |
|
|
|
681,463 |
|
|
|
(24,964 |
) |
|
|
(3.7 |
)% |
Total |
|
$ |
1,962,030 |
|
|
$ |
1,654,511 |
|
|
$ |
307,519 |
|
|
|
18.6 |
% |
(1) Represents the principal balance of loan originations and refinancings.
|
|
Other Key Metrics |
|
|||||
|
|
FY 25 |
|
|
FY 24 |
|
||
Net credit losses |
|
$ |
224,032 |
|
|
$ |
200,100 |
|
Percentage of average net finance receivables |
|
|
11.4 |
% |
|
|
11.2 |
% |
Provision for credit losses |
|
$ |
245,432 |
|
|
$ |
212,200 |
|
Percentage of average net finance receivables |
|
|
12.4 |
% |
|
|
11.9 |
% |
Percentage of total revenue |
|
|
38.0 |
% |
|
|
36.1 |
% |
General and administrative expenses |
|
$ |
257,575 |
|
|
$ |
247,698 |
|
Percentage of average net finance receivables |
|
|
13.1 |
% |
|
|
13.8 |
% |
Percentage of total revenue |
|
|
39.9 |
% |
|
|
42.1 |
% |
Non-GAAP Financial Measures
In addition to financial measures presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures. The company's management utilizes non-GAAP measures as additional metrics to aid in, and enhance, its understanding of the company's financial results. Tangible equity and the funded debt-to-tangible equity ratio are non-GAAP measures that adjust GAAP measures to exclude intangible assets. Management uses these equity measures to evaluate and manage the company's capital and leverage position. The company also believes that these equity measures are commonly used in the financial services industry and provide useful information to users of the company's financial statements in the evaluation of its capital and leverage position.
This non-GAAP financial information should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. In addition, the company's non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies. The following tables provide a reconciliation of GAAP measures to non-GAAP measures.
|
|
4Q 25 |
|
|
Debt |
|
$ |
1,650,764 |
|
Total stockholders' equity |
|
|
373,092 |
|
Less: Intangible assets |
|
|
31,781 |
|
Tangible equity (non-GAAP) |
|
$ |
341,311 |
|
Funded debt-to-equity ratio |
|
|
4.4 |
x |
Funded debt-to-tangible equity ratio (non-GAAP) |
|
|
4.8 |
x |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260204044284/en/
Investor Relations
Garrett Edson, (203) 682-8331
[email protected]