Regional Management Corp. Files 2023 Annual Report

TL;DR

<b>Regional Management Corp. has filed its 2023 10-K report, detailing financial performance, loan portfolio status, and executive compensation.</b>

AI Summary

Regional Management Corp. (RM) filed a Annual Report (10-K) with the SEC on February 22, 2024. Regional Management Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The filing includes data related to various loan segments, including Small Loans and Retail Loans, with delinquency information for 2023 and 2022. Information on revolving warehouse credit facilities, such as RMRV, RMRIV, and RMRIii, is present for periods including November 2022 and December 2023. The company disclosed details on stock compensation plans, including the Two Thousand Fifteen Long Term Incentive Plan, as of December 31, 2023. A subsequent event notes a quarterly cash dividend declared on February 1, 2024, with the filing date of February 22, 2024.

Why It Matters

For investors and stakeholders tracking Regional Management Corp., this filing contains several important signals. The 10-K filing provides a comprehensive overview of Regional Management Corp.'s financial health and operational activities for the fiscal year 2023, crucial for investors assessing the company's stability and growth prospects. Specific data on loan delinquencies and credit facilities offers insight into the company's risk management practices and its ability to navigate the current economic climate.

Risk Assessment

Risk Level: medium — Regional Management Corp. shows moderate risk based on this filing. The filing contains extensive data on loan portfolio performance and credit facilities, indicating potential exposure to credit risk and market fluctuations inherent in the personal credit industry.

Analyst Insight

Investors should review the detailed loan delinquency data and information on credit facilities to assess the company's risk profile and future lending capacity.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period)
• 2024-02-22 — Filing Date (Date of submission)
• 001-35477 — SEC File Number (Company's SEC file number)
• 6141 — SIC Code (Standard Industrial Classification for Personal Credit Institutions)
• 2024-02-01 — Dividend Declaration Date (Date of quarterly cash dividend declaration)

Key Players & Entities

• Regional Management Corp. (company) — Filer of the 10-K report
• 2023-12-31 (date) — Fiscal year end
• 2024-02-22 (date) — Filing date
• 001-35477 (other) — SEC file number
• SC (location) — State of incorporation
• DE (location) — State of incorporation
• 6141 (other) — Standard Industrial Classification
• 979 Batesville Road (address) — Business address

FAQ

Risk Factors

• Loan Portfolio Performance [medium — financial]: The filing details delinquency rates for various loan types (Small Loans, Retail Loans) across different past-due categories (1-29 days, 60-89 days, 90-119 days) for fiscal years 2023 and 2022.
• Credit Facility Management [medium — financial]: Information on revolving warehouse credit facilities (RMRV, RMRIV, RMRIii) and a senior revolving credit facility is provided, indicating the company's reliance on debt financing and associated covenants.
• Interest Rate Sensitivity [medium — market]: The company mentions interest rate reduction agreements and interest rate cap contracts, suggesting exposure to interest rate fluctuations.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.

Key Financial Figures

• $0.10 — nge on Which Registered Common Stock, $0.10 par value RM New York Stock Exchang
• $500 — cash proceeds to customers ranging from $500 to $2,500, with terms of up to 48 month
• $2,500 — ceeds to customers ranging from $500 to $2,500, with terms of up to 48 months. Our sma
• $493.5 million — 00 small loans outstanding representing $493.5 million in finance receivables, or an average o
• $1,700 — ivables, or an average of approximately $1,700 per loan. In 2023, 2022, and 2021, inte
• $164.7 m — fee income from small loans contributed $164.7 million, $160.4 million, and $150.6 milli
• $160.4 m — small loans contributed $164.7 million, $160.4 million, and $150.6 million, respectively
• $150.6 m — ted $164.7 million, $160.4 million, and $150.6 million, respectively, to our total reven
• $2,501 — cash proceeds to customers ranging from $2,501 to $25,000, with terms between 18 and 6
• $25,000 — eds to customers ranging from $2,501 to $25,000, with terms between 18 and 60 months. O
• $1.3 billion — 00 large loans outstanding representing $1.3 billion in finance receivables, or an average o
• $5,200 — ivables, or an average of approximately $5,200 per loan. In 2023, 2022, and 2021, inte
• $323.9 m — fee income from large loans contributed $323.9 million, $288.5 million, and $229.9 milli
• $288.5 m — large loans contributed $323.9 million, $288.5 million, and $229.9 million, respectively
• $229.9 m — ted $323.9 million, $288.5 million, and $229.9 million, respectively, to our total reven

Filing Documents

• rm-20231231.htm (10-K) — 5649KB
• rm-ex21_1.htm (EX-21.1) — 62KB
• rm-ex23_1.htm (EX-23.1) — 4KB
• rm-ex23_2.htm (EX-23.2) — 4KB
• rm-ex31_1.htm (EX-31.1) — 15KB
• rm-ex31_2.htm (EX-31.2) — 15KB
• rm-ex32_1.htm (EX-32.1) — 14KB
• rm-ex97_1.htm (EX-97.1) — 52KB
• img243412240_0.jpg (GRAPHIC) — 48KB
• 0000950170-24-018892.txt (&nbsp;) — 22410KB
• rm-20231231.xsd (EX-101.SCH) — 1965KB
• rm-20231231_htm.xml (XML) — 5576KB

Forward-Looking Statements

Forward-Looking Statements 1 PART I ITEM 1.

Business

Business 2 ITEM 1A.

Risk Factors

Risk Factors 12 ITEM 1B. Unresolved Staff Comments 37 ITEM 1C. Cybersecurity 37 ITEM 2.

Properties

Properties 37 ITEM 3.

Legal Proceedings

Legal Proceedings 38 ITEM 4. Mine Safety Disclosures 38 PART II ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39 ITEM 6. [Reserved] 41 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 42 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 54 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 55 ITEM 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 96 ITEM 9A.

Controls and Procedures

Controls and Procedures 96 ITEM 9B. Other Information 96 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 97 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 98 ITEM 11.

Executive Compensation

Executive Compensation 98 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 98 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 98 ITEM 14. Principal Accounting Fees and Services 98 PART IV ITEM 15. Exhibits, Financial Statement Schedules 99 ITEM 16. Form 10-K Summary 104

Signatures

Signatures 105 Forward-Lookin g Statements Each of the terms "Regional," the "Company," "we," "us," and "our" as used herein refers collectively to Regional Management Corp. and its wholly-owned subsidiaries, unless otherwise stated. This Annual Report on Form 10-K includes "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, certain statements and disclosures contained in Part I, Item 1, "Business," Part I, Item 1A, "Risk Factors," and Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations." These forward-looking statements include, but are not limited to, statements about our strategies, future operations, future financial position, future revenues, projected costs, expectations regarding demand and acceptance for our financial products, growth opportunities and trends in the market in which we operate, prospects, plans and objectives of management, representations, and contentions, and are not historical facts. Forward-looking statements typically are identified by the use of terms such as "may," "will," "would," "should," "could," "intend," "expect," "plan," "project," "anticipate," "believe," "estimate," "predict," "potential," "continue," and similar words, although some forward-looking statements are expressed differently. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. The forward-looking statements included herein reflect and contain management's current judgment, and involve risks and uncertainties that could cause actual results, events, and/or performance to differ materially from the plans, intentions, and expectations disclosed in the forward-looking statements. Such risks and uncertainties include, without limitation, the risks set forth in Part I,

BU SINESS

ITEM 1. BU SINESS . Overview We are a diversified consumer finance company that provides installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. As of December 31, 2023, we operated under the name "Regional Finance" online and in branch locations in 19 states across the United States, serving 538,400 active accounts. Most of our 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. We source our loans through our omni-channel platform, which includes our branches, centrally-managed direct mail campaigns, digital partners, and consumer website. We operate an integrated branch model in which nearly all loans, regardless of origination channel, are serviced through our branch network with the support of centralized sales, underwriting, service, collections, and administrative teams. This provides us with frequent in-person contact with our customers, which we believe improves our credit performance and customer loyalty. Our goal is to consistently grow our finance receivables and to soundly manage our portfolio risk, while providing our customers with attractive and easy-to-understand loan products that serve their varied financial needs. Our core products are small and large installment loans. As a complement to our loan products, we offer our customers optional payment and collateral protection insurance. Small Loans – We offer small installment loans with cash proceeds to customers ranging from $500 to $2,500, with terms of up to 48 months. Our small loans are typically secured by non-essential household goods and/or, to a lesser extent, a lien on a vehicle, which may be an automobile, motorcycle, boat, or all-terrain vehicle. As of December 31, 2023, we had 289,300 small loans outstanding representing $493.5 million in finance receivables,

View Full Filing

View this 10-K filing on SEC EDGAR