112 0 Kommentare Regional Management Corp. Provides Business Update as of August 31, 2020

Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today provided an update on its business operations and financial position.

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(1) Percentage of accounts that utilized borrower assistance programs during the month (Graphic: Business Wire)

As of August 31, 2020, our credit profile remains stable, demand for our loan products continues to rebound, our balance sheet remains strong, and we maintain access to ample liquidity to fund our business operations and growth. Our proven operating model and financial strength enable us to continue to provide our customers with responsible and affordable credit solutions as the COVID-19 pandemic persists.

Stable Credit Profile

As of August 31, 2020, our 30+ day contractual delinquency rate was 4.6%, compared to 4.5% as of July 31, 2020 and 4.8% as of June 30, 2020. Our 30+ day contractual delinquency totaled $47.8 million as of August 31, 2020, compared to $46.3 million as of July 31, 2020 and $49.5 million as of June 30, 2020.
Approximately 1.6% of the loans in our portfolio as of August 31, 2020, had been deferred or renewed under our borrower assistance programs during the month.

Rebounding Loan Demand

Demand for our loan products has continued to recover, with total originations increasing to $105.8 million in August, up 34% from $79.0 million in June. Our branch originations rose 21% to $80.8 million in August from $67.0 million in June. Our direct mail marketing campaigns and digital channels produced $24.9 million of originations in August, an increase of $12.9 million, or 108%, from June. Because September is typically a slower month for originations, we anticipate fewer branch, direct mail, and digital originations in September than in August.
As of August 31, 2020, we had $1.04 billion in net finance receivables outstanding, reflecting growth of $19.3 million since June 30, 2020. We expect net finance receivables outstanding on September 30, 2020, to be comparable to the amount outstanding as of August 31, 2020.