Regional Management Corp. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Plans to Open Between 25 and 30 De Novo Branches During 2018; Provides Effective Tax Rate and Interest Expense Guidance for the Year 2018; Provides Interest Expense Guidance for the First Quarter of 2018
February 13, 2018 at 04:15 pm EST
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Regional Management Corp. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported total revenue of $72,107,000 against $64,021,000 a year ago. Income before income taxes was $11,808,000 against $10,841,000 a year ago. Net income was $10,885,000 or $0.92 per diluted share against $6,467,000 or $0.55 per diluted share a year ago. Return on average assets was $5.4% against 3.7% a year ago. Return on average equity was 18.7% against $12.7% a year ago.
For the year, the company reported total revenue of $272,459,000 against $240,518,000 a year ago. Income before income taxes was $40,257,000 against $38,948,000 a year ago. Net income was $29,963,000 or $2.54 per diluted share against $24,031,000 or $1.99 per diluted share a year ago. Return on average assets was $4.0% against 3.7% a year ago. Return on average equity was 13.5% against $12.0% a year ago.
As of December 31, 2017, the Company's branch network consisted of 342 locations. For the full year 2018, with the Company's infrastructure build largely completed, the Company expects to return to a more historical level of de novo branch openings. As a result, the Company plans to open between 25 and 30 de novo branches during 2018, all of which should occur during the second half of 2018.
The company estimates that its effective combined federal and state income tax rate for 2018 will be approximately 25%. With the expectation that the Fed will continue to raise interest rates along with growing its loan portfolio and a planned securitization during the year, the company's interest expense will be higher in 2018 than in 2017.
For the first quarter 2018, the company expects interest expense to be at least $600,000 to $700,000 higher than it was in the fourth quarter of 2017, and are expecting somewhat similar levels of sequential increases throughout 2018.
Regional Management Corp. is a diversified consumer finance company. The Company provides installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Its products include small and large installment loans. It provides its customers optional payment and collateral protection insurance. It offers small installment loans with cash proceeds to customers ranging from $500 to $2,500, with terms of up to 48 months. It offers large installment loans with cash proceeds to customers ranging from $2,501 to $25,000, with terms between 18 and 60 months. It offers its customers optional payment and collateral protection insurance relating to its loan products, including credit life insurance, accident and health insurance, involuntary unemployment insurance, and personal property insurance. The Company also offers indirect retail installment loans of up to $7,500. It operates under the name Regional Finance.
Regional Management Corp. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Plans to Open Between 25 and 30 De Novo Branches During 2018; Provides Effective Tax Rate and Interest Expense Guidance for the Year 2018; Provides Interest Expense Guidance for the First Quarter of 2018