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Regional Management Corp. (RM-1.84%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a 3.9% increase in total revenue to $146.3 million from $140.9 million in the same quarter the previous year. The increase is attributed to a rise in interest and fee income.
Interest and fee income increased by 7.1% to $133.9 million, driven by a 4.1% increase in average net finance receivables and a 0.9% increase in annualized average yield.
Insurance income decreased by 34.8% to $7.4 million due to a strategic shift in product and geographic mix and higher claims related to hurricane activity.
Net income for the quarter was $7.7 million, down from $8.8 million in the previous year. The decrease was due to higher provision for credit losses, increased interest expense, and higher general and administrative expenses.
Provision for credit losses increased by 6.7% to $54.3 million, with the allowance for credit losses as a percentage of net finance receivables remaining consistent at 10.6%.
Net credit losses increased slightly to $47.6 million, with the net credit loss ratio at 10.6%, down from 11.0% in the previous year.
Contractual delinquency as a percentage of net finance receivables improved to 6.9% from 7.3% in the previous year.
General and administrative expenses increased by 0.6% to $62.5 million, with personnel expenses decreasing by 3.8% and marketing expenses increasing by 24.6%.
Interest expense rose by 14.2% to $19.4 million, primarily due to an increase in the average cost of debt and higher average balances of debt facilities.
The company maintained a strong liquidity position with $154.7 million of available liquidity as of September 30, 2024.
Regional Management Corp. declared a quarterly cash dividend of $0.30 per share, payable on December 11, 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Regional Management Corp. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.