Regional Management (NYSE:RM) originated $105.8M of loans in August, up 34% from $79.0M in June, with branch originations rising 21% during the same period to $80.8M.
Anticipates fewer branch, direct mail, and digital originations in September, which is typically a slower month, vs. August.
As of Aug. 31, 2020, RM’s 30+ day contractual delinquency rate was 4.6% vs. 4.5% as of July 31, 2020 and 4.8% as of June 30, 2020; about 1.6% of loans in its portfolio as of Aug. 31, 2020 had been deferred or renewed under its borrower assistance programs during the month.
As of Aug. 31, 2020, RM had $1.04B in net finance receivables outstanding, reflecting growth of $19.3M since June, 30 2020.
Expects net finance receivables outstanding at the end of September comparable to the amount outstanding at the end of August.
$142.0M allowance for credit losses as of June 30, 2020 compares favorably with its 30+ day contractual delinquency of $47.8M as of Aug. 31, 2020 and “provides ample coverage to absorb an increase in delinquencies and credit losses associated with COVID-19,” the company said.
See RM’s accounts receivable on its balance sheet over the past 11 quarters ending with the June 2020 quarter: