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Regional Management Corp. Announces Second Quarter 2018 Results

- Net income of $8.5 million and diluted earnings per share of $0.70 -

- 13th consecutive quarter of double-digit total finance receivables growth -

- 8th consecutive quarter of double-digit revenue growth -

GREENVILLE, S.C.--(BUSINESS WIRE)--Jul. 31, 2018-- Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the second quarter ended June 30, 2018.

Second Quarter 2018 Highlights

  • Net income for the second quarter of 2018 was $8.5 million, an increase of 38.3% from the prior-year period. Diluted earnings per share for the second quarter of 2018 was $0.70, based on a diluted share count of 12.1 million.
  • Total finance receivables as of June 30, 2018 were $847.2 million, an increase of 16.6%, or $120.5 million, from the prior year.
    • Thirteenth consecutive quarter that total finance receivables have grown at least 10% over the prior-year period.
    • Total core small and large loan finance receivables increased $160.1 million, or 26.0%, compared to the prior-year period.
    • Large loan finance receivables of $392.1 million increased $124.2 million, or 46.3%, from the prior-year period and now represent 46.3% of the total loan portfolio. Small loan finance receivables as of June 30, 2018 were $384.7 million, an increase of 10.3% over the prior-year period.
  • Total revenue for the second quarter of 2018 was $72.4 million, a $7.1 million, or 10.8%, increase from the prior-year period.
    • Eighth consecutive quarter of year-over-year double-digit revenue growth.
    • Interest and fee income increased 11.8%, driven by a 16.6% increase in finance receivables compared to the prior-year period.
  • Provision for credit losses for the second quarter of 2018 was $20.2 million, an increase of 8.7% from the prior-year period, while total finance receivables increased 16.6%.
  • Annualized net credit losses as a percentage of finance receivables were 9.5%, a 40 basis point improvement from 9.9% in the prior-year period.
  • 30+ day contractual delinquencies as of June 30, 2018 were 6.3%, an improvement from 6.5% for both March 31, 2018 and June 30, 2017. 30+ day delinquencies as of March 31, 2018 included 0.2% related to the 2017 hurricanes.
  • Completed first asset-backed securitization, a $150 million note issuance (senior class rated “AA” by DBRS) with a weighted average coupon of 3.93%.

“We produced another strong quarter at Regional, as we continue to consistently generate double-digit finance receivable and top line growth, led by our core portfolio,” said Peter R. Knitzer, President and Chief Executive Officer of Regional Management. “Additionally, by maintaining our solid credit profile and controlling our overall expenses, we are expanding our margins and continuing to record double-digit bottom line growth on a year-over-year basis.”

“In addition to our very solid second quarter performance, we were pleased to complete our first asset-backed term securitization, fully backed by large loan receivables,” continued Mr. Knitzer. “Our successful securitization allowed us to lower our cost of capital and further diversify our funding capabilities. Moving ahead, in the back half of 2018, we are squarely focused on our hybrid growth strategy supported by our de novo branch expansion, which includes expanding our footprint into the Midwest, while continuing to increase our receivables at our existing branches. All in, we are delivering on consistent and profitable growth and remain optimally positioned to continue to generate long-term shareholder value.”

Second Quarter 2018 Results

Finance receivables outstanding at June 30, 2018 were $847.2 million, a 16.6% increase from $726.8 million in the prior year. Finance receivables increased from continued strong growth in both the core small and large loan portfolios.

For the second quarter ended June 30, 2018, the Company reported total revenue of $72.4 million, a 10.8% increase from $65.3 million in the prior-year period. Interest and fee income for the second quarter of 2018 was $66.8 million, an 11.8% increase from $59.8 million in the prior-year period, primarily due to increases in the small and large loan portfolios compared to the prior-year period. Insurance income, net for the second quarter of 2018 was $2.9 million, a $0.2 million, or 6.6%, reduction from the prior-year period. The decrease was primarily due to the transition in insurance carriers in the prior-year period, causing some of the Company’s insurance claims to impact net credit losses in the second quarter of 2017 instead of insurance income. Other income for the second quarter of 2018 was $2.7 million, a 9.7% increase from the prior-year period.

The provision for credit losses in the second quarter of 2018 was $20.2 million, an 8.7% increase compared to $18.6 million in the prior-year period, while total finance receivables increased 16.6%. Net credit losses were $19.5 million in the second quarter of 2018, an increase of $1.9 million over the prior-year period. The increase over the prior-year period was primarily due to portfolio growth, partially offset by a $0.7 million build in the allowance for credit losses compared to a $1.0 million build in the second quarter of 2017. Annualized net credit losses as a percentage of average finance receivables in the second quarter of 2018 were 9.5% (inclusive of 50 basis points related to the 2017 hurricanes), a 40 basis point improvement from 9.9% in the prior-year period.

General and administrative expenses for the second quarter of 2018 were $33.2 million, an increase of $1.6 million, or 5.0%, from the prior-year period. Annualized general and administrative expenses as a percentage of average finance receivables improved 170 basis points from the prior-year period to 16.2% for the second quarter of 2018. General and administrative expenses for the second quarter of 2018 included higher personnel costs related to staffing increases in information technology, centralized collections, and branches to support ongoing loan portfolio growth, as well as higher marketing expense.

Interest expense was $7.9 million in the second quarter of 2018, compared to $5.2 million in the prior-year period. The increase in interest expense was due to larger long-term debt amounts outstanding from growth in finance receivables, federal funds rate increases, larger unused lines of credit, and incremental debt issuance costs associated with upsizing the senior revolving credit facility and entering into the warehouse credit facility. During the quarter, the Company completed its first asset-backed securitization, a $150 million note issuance (senior class rated “AA” by DBRS) with a weighted average coupon of 3.93%. The Company’s diversified sources of funding continue to position it for long-term growth.

Net income for the second quarter of 2018 was $8.5 million, an increase from $6.1 million in the prior-year period. Diluted earnings per share for the second quarter of 2018 was $0.70, an increase from $0.52 in the prior-year period.

2018 De Novo Outlook

As of June 30, 2018, the Company’s branch network consisted of 340 locations. The Company opened one branch and consolidated two locations during the second quarter of 2018. For 2018, the Company maintains its plan to open between 25 and 30 de novo branches.

Liquidity and Capital Resources

As of June 30, 2018, the Company had finance receivables of $847.2 million and outstanding long-term debt of $595.8 million (consisting of $383.2 million of long-term debt on its $638.0 million senior revolving credit facility, $29.7 million of long-term debt on its $150.0 million revolving warehouse credit facility, $32.9 million of long-term debt on its amortizing loan, and $150.0 million through its asset-backed securitization).

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 (855) 327-6837 (toll-free) or (631) 891-4304 (direct). Please dial the number 10 minutes prior to the scheduled start time.

*** A supplemental slide presentation will be made available on Regional Management’s website prior to the earnings call at www.RegionalManagement.com. ***

In addition, a live webcast of the conference call will also be available on Regional Management’s website at www.RegionalManagement.com.

A replay will be available following the end of the call through Tuesday, August 7, 2018, by telephone at (844) 512-2921 (toll-free) or (412) 317-6671 (international), passcode 10005223. A webcast replay of the call will be available at http://www.RegionalManagement.com for one year following the call.

Forward-Looking Statements

This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Regional Management Corp.’s expectations or beliefs concerning future events. 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 are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, the following: changes in general economic conditions, including levels of unemployment and bankruptcies; risks associated with Regional Management’s transition to a new loan origination and servicing software system; risks related to opening new branches, including the ability or inability to open new branches as planned; risks inherent in making loans, including repayment risks and value of collateral, which risks may increase in light of adverse or recessionary economic conditions; risks relating to our first asset-backed securitization; changes in interest rates; the risk that Regional Management’s existing sources of liquidity become insufficient to satisfy its needs or that its access to these sources becomes unexpectedly restricted; changes in federal, state, or local laws, regulations, or regulatory policies and practices, and risks associated with the manner in which laws and regulations are interpreted, implemented, and enforced; the impact of changes in tax laws, guidance, and interpretations, including related to certain provisions of the Tax Cuts and Jobs Act; the timing and amount of revenues that may be recognized by Regional Management; changes in current revenue and expense trends (including trends affecting delinquencies and credit losses); changes in Regional Management’s markets and general changes in the economy (particularly in the markets served by Regional Management); changes in the competitive environment in which Regional Management operates or in the demand for its products; risks related to acquisitions; changes in operating and administrative expenses; and the departure, transition, or replacement of key personnel. Such factors and others are discussed in greater detail in Regional Management’s filings with the Securities and Exchange Commission. Regional Management will not update the information contained in this press release beyond the publication date, except to the extent required by law, and is not responsible for changes made to this document by wire services or Internet services.

About Regional Management Corp.

Regional Management Corp. (NYSE: RM) is a diversified consumer finance company providing a broad array of loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other traditional lenders. Regional Management began operations in 1987 with four branches in South Carolina and has since expanded its branch network across South Carolina, Texas, North Carolina, Tennessee, Alabama, Oklahoma, New Mexico, Georgia, and Virginia. Each of its loan products is structured on a fixed rate, fixed term basis with fully amortizing equal monthly installment payments and is repayable at any time without penalty. Regional Management’s loans are sourced through its multiple channel platform, including in its branches, through direct mail campaigns, online credit application networks, retailers, and its consumer website. For more information, please visit www.RegionalManagement.com.

 

Regional Management Corp. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

(in thousands, except per share amounts)

               
Better (Worse) Better (Worse)
2Q 18 2Q 17 $   % YTD 18 YTD 17 $   %
Revenue
Interest and fee income $ 66,829 $ 59,787 $ 7,042 11.8 % $ 132,980 $ 119,042 $ 13,938 11.7 %
Insurance income, net 2,882 3,085 (203 ) (6.6 )% 6,271 6,890 (619 ) (9.0 ) %
Other income   2,705     2,466     239   9.7 %   5,790     5,226     564   10.8 %
 
Total revenue   72,416     65,338     7,078   10.8 %   145,041     131,158     13,883   10.6 %
 
Expenses
Provision for credit losses 20,203 18,589 (1,614 ) (8.7 ) % 39,718 37,723 (1,995 ) (5.3 ) %
 
Personnel 19,390 18,387 (1,003 ) (5.5 ) % 40,618 36,555 (4,063 ) (11.1 ) %
Occupancy 5,478 5,419 (59 ) (1.1 ) % 11,096 10,704 (392 ) (3.7 ) %
Marketing 2,258 1,779 (479 ) (26.9 ) % 3,711 2,984 (727 ) (24.4 ) %
Other   6,089     6,057     (32 ) (0.5 ) %   12,382     12,853     471   3.7 %
 
Total general and administrative 33,215 31,642 (1,573 ) (5.0 ) % 67,807 63,096 (4,711 ) (7.5 ) %
 
Interest expense   7,915     5,221     (2,694 ) (51.6 ) %   15,092     10,434     (4,658 ) (44.6 ) %
 
Income before income taxes 11,083 9,886 1,197 12.1 % 22,424 19,905 2,519 12.7 %
Income taxes   2,601     3,751     1,150   30.7 %   5,298     6,136     838   13.7 %
 
Net income $ 8,482   $ 6,135   $ 2,347   38.3 % $ 17,126   $ 13,769   $ 3,357   24.4 %
 
Net income per common share:
Basic $ 0.73   $ 0.53   $ 0.20   37.7 % $ 1.47   $ 1.19   $ 0.28   23.5 %
 
Diluted $ 0.70   $ 0.52   $ 0.18   34.6 % $ 1.42   $ 1.17   $ 0.25   21.4 %
 
Weighted-average shares outstanding:
Basic   11,658     11,554     (104 ) (0.9 ) %   11,638     11,524     (114 ) (1.0 ) %
 
Diluted   12,138     11,730     (408 ) (3.5 ) %   12,084     11,723     (361 ) (3.1 ) %
 
 
Return on average assets (annualized)   4.0 %   3.5 %   4.1 %   3.9 %
 
Return on average equity (annualized)   13.4 %   11.3 %   13.8 %   12.9 %
 
 

Regional Management Corp. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(in thousands, except par value amounts)

         
Increase (Decrease)
2Q 18 2Q 17 $   %
Assets
Cash $ 2,799 $ 3,678 $ (879 ) (23.9 ) %
Gross finance receivables 1,121,711 933,257 188,454 20.2 %
Unearned finance charges and insurance premiums   (274,473 )   (206,490 )   (67,983 ) (32.9 ) %
 
Finance receivables 847,238 726,767 120,471 16.6 %
Allowance for credit losses   (48,450 )   (42,000 )   (6,450 ) (15.4 ) %
 
Net finance receivables 798,788 684,767 114,021 16.7 %
Restricted cash 26,356 10,630 15,726 147.9 %
Property and equipment 12,072 11,653 419 3.6 %
Intangible assets 10,785 8,480 2,305 27.2 %
Deferred tax asset 1,776 (1,776 ) (100.0 ) %
Other assets   17,420     6,549     10,871   166.0 %
 
Total assets $ 868,220   $ 727,533   $ 140,687   19.3 %
 
Liabilities and Stockholders’ Equity
Liabilities:
Long-term debt $ 595,765 $ 497,049 $ 98,716 19.9 %
Unamortized debt issuance costs   (7,437 )   (5,539 )   (1,898 ) (34.3 ) %
 
Net long-term debt 588,328 491,510 96,818 19.7 %
Accounts payable and accrued expenses 17,526 14,656 2,870 19.6 %
Deferred tax liability   3,832         3,832   100.0 %
 
Total liabilities 609,686 506,166 103,520 20.5 %
Stockholders’ equity:
Preferred stock ($0.10 par value, 100,000 shares authorized, no shares issued or outstanding)
Common stock ($0.10 par value, 1,000,000 shares authorized, 13,334 shares issued and 11,788 shares outstanding at June 30, 2018 and 13,201 shares issued and 11,655 shares outstanding at June 30, 2017) 1,333 1,320 13 1.0 %
Additional paid-in-capital 96,369 92,535 3,834 4.1 %
Retained earnings 185,878 152,558 33,320 21.8 %
Treasury stock (1,546 shares at June 30, 2018 and 2017)   (25,046 )   (25,046 )     0.0 %
 
Total stockholders’ equity   258,534     221,367     37,167   16.8 %
 
Total liabilities and stockholders’ equity $ 868,220   $ 727,533   $ 140,687   19.3 %
 
 

Regional Management Corp. and Subsidiaries

Selected Financial Data

(Unaudited)

(in thousands, except per share amounts)

     
Averages and Yields
2Q 18   1Q 18   2Q 17
Average Finance
Receivables
 

Average Yield

(Annualized)

Average Finance
Receivables
 

Average Yield

(Annualized)

Average Finance
Receivables
 

Average Yield

(Annualized)

Small loans $ 366,647 40.1 % $ 370,513 40.1 % $ 341,184

42.9

%
Large loans 375,836 28.6 % 355,784 28.5 % 253,049 29.0 %
Automobile loans 43,980 16.0 % 55,515 15.4 % 83,082 16.5 %
Retail loans   31,530 18.8 %   32,657 18.5 %   30,486 19.1 %
 
Total interest and fee yield $ 817,993 32.7 % $ 814,469 32.5 % $ 707,801 33.8 %
 
Total revenue yield $ 817,993 35.4 % $ 814,469 35.7 % $ 707,801 36.9 %
 
     
Components of Increase in Interest and Fee Income

2Q 18 Compared to 2Q 17

Increase (Decrease)

Volume   Rate   Volume & Rate   Net
Small loans $ 2,730 $ (2,411 ) $ (180 ) $ 139
Large loans 8,889 (232 ) (113 ) 8,544
Automobile loans (1,615 ) (108 ) 51 (1,672 )
Retail loans 50 (18 ) (1 ) 31
Product mix   (746 )   808     (62 )    
 
Total increase in interest and fee income $ 9,308   $ (1,961 ) $ (305 ) $ 7,042  
 
     
Net Loans Originated (1)
2Q 18   1Q 18  

QoQ $

Inc (Dec)

 

QoQ %

Inc (Dec)

  2Q 17  

YoY $

Inc (Dec)

 

YoY %

Inc (Dec)

Small loans $ 165,023 $ 123,756 $ 41,267 33.3 % $ 160,380 $ 4,643 2.9 %
Large loans 109,186 88,773 20,413 23.0 % 86,771 22,415 25.8 %
Automobile loans (2) 0.0 % 5,828 (5,828 ) (100.0 ) %
Retail loans   6,713   7,302   (589 ) (8.1 ) %   6,353   360   5.7 %
 
Total net loans originated $ 280,922 $ 219,831 $ 61,091   27.8 % $ 259,332 $ 21,590   8.3 %
(1)   Represents the balance of loan origination and refinancing net of unearned finance charges.
(2) The Company ceased originating automobile loans in November 2017.
 
     
Other Key Metrics
2Q 18   1Q 18   2Q 17
Net credit losses $ 19,503 $ 20,675 $ 17,589
Percentage of average finance receivables (annualized) 9.5 % 10.2 % 9.9 %
 
Provision for credit losses $ 20,203 $ 19,515 $ 18,589
Percentage of average finance receivables (annualized) 9.9 % 9.6 % 10.5 %
Percentage of total revenue 27.9 % 26.9 % 28.5 %
 
General and administrative expenses $ 33,215 $ 34,592 $ 31,642
Percentage of average finance receivables (annualized) 16.2 % 17.0 % 17.9 %
Percentage of total revenue 45.9 % 47.6 % 48.4 %
 
Same store results:
Finance receivables at period-end $ 839,741 $ 792,495 $ 723,547
Finance receivable growth rate 15.6 % 14.1 % 12.0 %
Number of branches in calculation 334 331 336
 
     
Finance Receivables by Product
2Q 18   1Q 18  

QoQ $

Inc (Dec)

 

QoQ %
Inc (Dec)

  2Q 17  

YoY $

Inc (Dec)

 

YoY %

Inc (Dec)

Small loans $ 384,690 $ 360,470 $ 24,220 6.7 % $ 348,742 $ 35,948 10.3 %
Large loans   392,101   363,931   28,170   7.7 %   267,921   124,180   46.3 %
 
Total core loans 776,791 724,401 52,390 7.2 % 616,663 160,128 26.0 %
Automobile loans 39,414 48,704 (9,290 ) (19.1 ) % 79,861 (40,447 ) (50.6 ) %
Retail loans   31,033   31,851   (818 ) (2.6 ) %   30,243   790   2.6 %
 
Total finance receivables $ 847,238 $ 804,956 $ 42,282   5.3 % $ 726,767 $ 120,471   16.6 %
 
 
Number of branches at period end 340 341 (1 ) (0.3 ) % 347 (7 ) (2.0 ) %
Average finance receivables per branch $ 2,492 $ 2,361 $ 131   5.5 % $ 2,094 $ 398   19.0 %
 
     
Contractual Delinquency by Aging
2Q 18   1Q 18   2Q 17
Allowance for credit losses (1) $ 48,450   5.7 % $ 47,750   5.9 % $ 42,000   5.8 %
 
Current 704,770 83.1 % 683,206 84.9 % 599,344 82.5 %
1 to 29 days past due   89,510 10.6 %   69,034 8.6 %   80,064 11.0 %
 
Delinquent accounts:
30 to 59 days 18,886 2.3 % 14,858 1.8 % 17,018 2.3 %
60 to 89 days 12,103 1.4 % 11,495 1.4 % 10,726 1.5 %
90 to 119 days 8,373 1.0 % 9,656 1.2 % 7,793 1.0 %
120 to 149 days 6,857 0.8 % 7,905 1.0 % 6,302 0.9 %
150 to 179 days   6,739 0.8 %   8,802 1.1 %   5,520 0.8 %
 
Total contractual delinquency (2) $ 52,958 6.3 % $ 52,716 6.5 % $ 47,359 6.5 %
 
Total finance receivables $ 847,238 100.0 % $ 804,956 100.0 % $ 726,767 100.0 %
 
 
1 day and over past due $ 142,468 16.9 % $ 121,750 15.1 % $ 127,423 17.5 %
 
     
Contractual Delinquency by Product
2Q 18   1Q 18   2Q 17
Small loans $ 28,347   7.4 % $ 29,586   8.2 % $ 26,610   7.6 %
Large loans 19,600 5.0 % 17,723 4.9 % 13,839 5.2 %
Automobile loans 2,909 7.4 % 3,132 6.4 % 5,172 6.5 %
Retail loans   2,102 6.8 %   2,275 7.1 %   1,738 5.7 %
 
Total contractual delinquency (2) $ 52,958 6.3 % $ 52,716 6.5 % $ 47,359 6.5 %
(1)   1Q 18 includes incremental hurricane allowance for credit losses of $1,750.
(2) 1Q 18 delinquency was impacted 0.2% by the hurricane-affected branches.
 
     
Quarterly Trend
2Q 17   3Q 17   4Q 17   1Q 18   2Q 18  

QoQ $

B(W)

 

YoY $

B(W)

Revenue
Interest and fee income $ 59,787 $ 63,615 $ 66,377 $ 66,151 $ 66,829 $ 678 $ 7,042
Insurance income, net 3,085 3,095 3,076 3,389 2,882 (507 ) (203 )
Other income   2,466   2,484   2,654   3,085   2,705   (380 )   239  
 
Total revenue   65,338   69,194   72,107   72,625   72,416   (209 )   7,078  
 
Expenses
Provision for credit losses 18,589 20,152 19,464 19,515 20,203 (688 ) (1,614 )
 
Personnel 18,387 19,534 19,903 21,228 19,390 1,838 (1,003 )
Occupancy 5,419 5,480 5,346 5,618 5,478 140 (59 )
Marketing 1,779 2,303 1,841 1,453 2,258 (805 ) (479 )
Other   6,057   6,523   6,929   6,293   6,089   204     (32 )
 
Total general and administrative 31,642 33,840 34,019 34,592 33,215 1,377 (1,573 )
 
Interest expense   5,221   6,658   6,816   7,177   7,915   (738 )   (2,694 )
 
Income before income taxes 9,886 8,544 11,808 11,341 11,083 (258 ) 1,197
Income taxes   3,751   3,235   923   2,697   2,601   96     1,150  
 
Net income $ 6,135 $ 5,309 $ 10,885 $ 8,644 $ 8,482 $ (162 ) $ 2,347  
 
Net income per common share:
Basic $ 0.53 $ 0.46 $ 0.94 $ 0.74 $ 0.73 $ (0.01 ) $ 0.20  
 
Diluted $ 0.52 $ 0.45 $ 0.92 $ 0.72 $ 0.70 $ (0.02 ) $ 0.18  
 
Weighted-average shares outstanding:
Basic   11,554   11,563   11,592   11,618   11,658   (40 )   (104 )
 
Diluted   11,730   11,812   11,875   12,030   12,138   (108 )   (408 )
 
 
Net interest margin $ 60,117 $ 62,536 $ 65,291 $ 65,448 $ 64,501 $ (947 ) $ 4,384  
 
Net credit margin $ 41,528 $ 42,384 $ 45,827 $ 45,933 $ 44,298 $ (1,635 ) $ 2,770  
 
 
2Q 17 3Q 17 4Q 17 1Q 18 2Q 18

QoQ $

Inc (Dec)

YoY $

Inc (Dec)

Total assets $ 727,533 $ 779,850 $ 829,483 $ 814,809 $ 868,220 $ 53,411   $ 140,687  
 
Finance receivables $ 726,767 $ 774,856 $ 817,463 $ 804,956 $ 847,238 $ 42,282   $ 120,471  
 
Allowance for credit losses $ 42,000 $ 47,400 $ 48,910 $ 47,750 $ 48,450 $ 700   $ 6,450  
 
Long-term debt $ 497,049 $ 538,351 $ 571,496 $ 550,377 $ 595,765 $ 45,388   $ 98,716  
 
     
Averages and Yields
YTD 18   YTD 17
Average Finance
Receivables
  Average Yield Average Finance
Receivables
  Average Yield
Small loans $ 368,570 40.1 % $ 346,752 42.4 %
Large loans 365,865 28.5 % 246,564 28.8 %
Automobile loans 49,715 15.7 % 85,580 16.5 %
Retail loans   32,091 18.7 %   31,569 18.8 %
 
Total interest and fee yield $ 816,241 32.6 % $ 710,465 33.5 %
 
Total revenue yield $ 816,241 35.5 % $ 710,465 36.9 %
 
     
Components of Increase in Interest and Fee Income

YTD 18 Compared to YTD 17

Increase (Decrease)

Volume   Rate   Volume & Rate   Net
Small loans $ 4,625 $ (3,978 ) $ (250 ) $ 397
Large loans 17,166 (317 ) (153 ) 16,696
Automobile loans (2,967 ) (363 ) 152 (3,178 )
Retail loans 49 (26 ) 23
Product mix   (1,150 )   1,389     (239 )    
 
Total increase in interest and fee income $ 17,723   $ (3,295 ) $ (490 ) $ 13,938  
 
     
Net Loans Originated (1)
YTD 18   YTD 17  

YTD $

Inc (Dec)

 

YTD %

Inc (Dec)

Small loans $ 288,779 $ 275,739 $ 13,040 4.7 %
Large loans 197,959 143,791 54,168 37.7 %
Automobile loans (2) 14,617 (14,617 ) (100.0) %
Retail loans 14,015 12,617 1,398 11.1 %
 
Total net loans originated $ 500,753 $ 446,764 $ 53,989 12.1 %
(1)   Represents the balance of loan origination and refinancing net of unearned finance charges.
(2) The Company ceased originating automobile loans in November 2017.
 
     
Other Key Metrics
YTD 18   YTD 17
Net credit losses $ 40,178 $ 36,973

Percentage of average finance receivables (annualized)

9.8 % 10.4 %
 
Provision for credit losses $ 39,718 $ 37,723

Percentage of average finance receivables (annualized)

9.7 % 10.6 %
Percentage of total revenue 27.4 % 28.8 %
 
General and administrative expenses $ 67,807 $ 63,096

Percentage of average finance receivables (annualized)

16.6 % 17.8 %
Percentage of total revenue 46.8 % 48.1 %

Source: Regional Management Corp.

Regional Management Corp.
Investor Relations
Garrett Edson, 203-682-8331