Regional Managment Corp (NYSE: RM) reported Q1 EPS of $0.65. Revenue for the quarter came in at $65.8 million, versus $0 reported last year.

First Quarter 2017 Highlights

• Net income for the first quarter of 2017 was $7.6 million, an increase of 47.5% from the prior-year period. The net income increase was due to growth in the core loan portfolios, as well as a $1.5 million tax benefit from share-based compensation in the first quarter of 2017. Diluted earnings per share for the first quarter of 2017 were $0.65, based on a diluted share count of 11.7 million.
• Total finance receivables as of March 31, 2017 were $695.0 million, an increase of 14.4%, or $87.6 million, from the prior year, and down 3.2%, or $22.8 million, sequentially due to normal seasonality:
  • Eighth consecutive quarter that total finance receivables have increased at least 10% over the prior-year period.
  • Large loan finance receivables of $242.4 million increased $80.1 million, or 49.3%, from the prior-year period and now represent 35% of the total loan portfolio. Branch small loan finance receivables as of March 31, 2017 were $335.6 million, an increase of 8.1% over the prior year and a decrease of 6.4% sequentially due to typical seasonality.
• Total revenue for the first quarter of 2017 was $65.8 million, a $9.1 million, or 16.1%, increase from the prior-year period, and a $1.8 million, or 2.8%, increase sequentially.
  • Strong interest and fee income increase of 15.5% driven by a 14.4% increase in receivables compared to the prior-year period.
  • Insurance income for the first quarter of 2017 increased $0.9 million from the prior-year period and $2.2 million sequentially. The sequential increase is related to a temporary shift of certain claims expense into provision for credit losses during the Company’s transition to a new insurance provider.
  • Overall yield increase of 40 basis points on a year-over-year basis and 90 basis points sequentially.
• Provision for credit losses for the first quarter of 2017 was $19.1 million, an increase of $5.3 million compared to the prior-year period. The provision for credit losses included $2.2 million related to a temporary shift of insurance claims expense, as noted above. This line shift had no impact on the Company’s net income.
  • Annualized net credit losses as a percentage of finance receivables were 10.9% (inclusive of 0.5% attributable to the insurance losses noted above), an increase from 9.7% in the prior-year period.
• Total delinquencies as a percentage of total finance receivables as of March 31, 2017 were 15.7%, a significant reduction from 18.1% as of December 31, 2016 and an improvement from 16.7% as of March 31, 2016.
  • 30+ day contractual delinquencies were 6.5%, an improvement sequentially from 7.4% as of December 31, 2016 and a slight increase from 6.2% as of March 31, 2016.

For earnings history and earnings-related data on Regional Managment Corp (RM) click here.