Regional Management (NYSE:RM) Announces Quarterly Earnings Results

Regional Management (NYSE:RM) released its quarterly earnings results on Wednesday. The credit services provider reported $0.85 EPS for the quarter, topping analysts’ consensus estimates of $0.81 by $0.04, FiscalAI reports. Regional Management had a net margin of 6.98% and a return on equity of 12.53%. The business had revenue of $168.01 million during the quarter, compared to analysts’ expectations of $165.69 million.

Here are the key takeaways from Regional Management’s conference call:

• Second-quarter earnings increased: Net income rose 14% year to date and diluted EPS rose 17% year over year in the first half, while second-quarter revenue increased 7% to $168 million. Operating efficiency also improved, with the expense ratio down 80 basis points to 12.4%.
• Growth fell short of expectations amid weaker direct-mail response rates, increased fintech competition and tighter underwriting in higher-risk segments. Management lowered full-year portfolio growth guidance to 5%–7% and EPS growth guidance to 10%–13%.
• Credit performance was somewhat weaker than planned, with a 12.2% net credit loss rate, up 30 basis points year over year, and 30-plus-day delinquencies of 7%. Management cited possible fraud or first-party abuse in certain segments, while also monitoring inflation and elevated fuel prices.
• The Column bank partnership is scaling faster than planned, with more than $65 million of originations and roughly 28% of total originations on a run-rate basis. Management expects the model to improve like-for-like pre-tax margins by at least 200 basis points and plans to transition nearly all states by the end of 2027.
• Regional Management is investing in longer-term growth through end-to-end digital lending, enhanced fraud controls and machine-learning underwriting, AI-enabled operations, new branch technology and expansion into Florida, its 20th state. Management expects credit losses to improve and quarterly earnings to strengthen in the second half of 2026.

Regional Management Trading Down 0.2%

RM stock traded down $0.06 during trading on Friday, hitting $32.20. 57,426 shares of the company traded hands, compared to its average volume of 63,268. The company has a 50-day moving average of $39.19 and a 200-day moving average of $36.53. The company has a debt-to-equity ratio of 4.30, a quick ratio of 59.88 and a current ratio of 59.88. Regional Management has a 1 year low of $30.46 and a 1 year high of $46.00. The firm has a market capitalization of $296.61 million, a PE ratio of 6.78 and a beta of 1.01.

Regional Management Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, August 19th will be paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend is Wednesday, August 19th. Regional Management’s payout ratio is 24.34%.

Wall Street Analyst Weigh In

RM has been the subject of a number of research reports. Wall Street Zen upgraded Regional Management from a “buy” rating to a “strong-buy” rating in a report on Sunday, July 12th. Citizens Jmp dropped their target price on Regional Management from $45.00 to $43.00 and set a “market outperform” rating for the company in a research report on Thursday. Weiss Ratings raised Regional Management from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, June 26th. Finally, Citigroup reiterated a “market outperform” rating on shares of Regional Management in a research report on Thursday. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, Regional Management presently has a consensus rating of “Moderate Buy” and an average target price of $43.00.

Insider Buying and Selling at Regional Management

In other Regional Management news, CAO Steven B. Barnette sold 3,274 shares of the business’s stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $43.30, for a total value of $141,764.20. Following the transaction, the chief accounting officer owned 13,472 shares in the company, valued at approximately $583,337.60. The trade was a 19.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Sandra K. Johnson sold 1,000 shares of the company’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $36.00, for a total transaction of $36,000.00. Following the transaction, the director directly owned 21,933 shares of the company’s stock, valued at approximately $789,588. This trade represents a 4.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 8,874 shares of company stock worth $350,208. 10.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Wexford Capital LP bought a new position in Regional Management during the 3rd quarter valued at approximately $32,000. Advisory Services Network LLC purchased a new position in shares of Regional Management during the third quarter valued at approximately $39,000. Kestra Advisory Services LLC bought a new position in shares of Regional Management during the fourth quarter valued at approximately $49,000. BNP Paribas Financial Markets raised its holdings in shares of Regional Management by 45.3% during the third quarter. BNP Paribas Financial Markets now owns 2,077 shares of the credit services provider’s stock valued at $81,000 after acquiring an additional 648 shares in the last quarter. Finally, Russell Investments Group Ltd. lifted its stake in Regional Management by 45.4% in the third quarter. Russell Investments Group Ltd. now owns 3,526 shares of the credit services provider’s stock worth $137,000 after acquiring an additional 1,101 shares during the period. Hedge funds and other institutional investors own 98.89% of the company’s stock.

Regional Management Company Profile

Regional Management Corp., headquartered in Wilmington, North Carolina, is a consumer finance company specializing in installment loan products for underbanked individuals. Since its founding in 1977, the company has developed a network of field-based branches alongside a digital platform to offer credit solutions in rural and small-town markets across the United States.

The company’s core offerings include consumer installment loans for everyday purchases, auto refinancing and lease buyouts, as well as ancillary services such as insurance referrals.