Regional Management reported higher third-quarter earnings and record revenue, alongside growth in its loan portfolio and a shift toward larger loans. The consumer lender also announced a change in its credit-risk leadership and declared a quarterly dividend.
The results show continued portfolio expansion, but also higher year-over-year credit losses. Management said it has tightened underwriting in weaker-performing segments and is rolling out additional fraud controls and a new origination scorecard.
Quarterly results and portfolio
- Net income was $15.1 million, up 5.3% from a year earlier. Diluted earnings per share rose 13.4% to $1.61.
- For the first nine months of 2026, net income increased 10.0% year over year and diluted earnings per share rose 15.2%.
- Revenue reached a quarterly record of $178.8 million, up 8.0%, supported by portfolio growth and fees from the company’s bank partnership.
- The annualized operating expense ratio improved by 20 basis points from the prior-year quarter.
- Net finance receivables totaled $2.2 billion at Sept. 30, up $156.9 million, or 7.6%, year over year and $61.7 million from the end of June. Growth reflected larger loans, including auto-secured loans, and 14 branch openings since Sept. 30, 2025.
- Originations were $530.3 million, up 5.3% sequentially and 1.5% year over year. Large-loan originations rose 11.8% year over year, while small-loan originations fell 21.9%, which the company attributed to tighter underwriting in higher-risk segments.
- Large loans accounted for 78.8% of the portfolio, up from 73.7% a year earlier. Their receivables grew 15.2% to $1.7 billion.
- Auto-secured receivables increased 25.2% to $345.0 million, or 15.6% of the portfolio versus 13.4% a year earlier.
- Small-loan receivables fell 13.5% to $467.9 million and represented 21.2% of the portfolio, down from 26.3%.
Credit performance and business developments
- The net credit loss rate was 10.9%. That was down 130 basis points from the second quarter, which management described as a seasonal improvement, but up 70 basis points from the year-earlier quarter.
- Management said it has identified the drivers of the annual increase in credit losses and has tightened underwriting in underperforming segments. It also said enhanced fraud controls are being implemented across all channels and a new proprietary loan-origination scorecard is expected to be fully rolled out in the fourth quarter.
- The bank partnership has been extended to three additional states since the company’s last update. Management said the program supports adjustments to pricing and is becoming central to its competitive approach.
- Chief Executive Lakhbir S. Lamba said the company expects the partnership, along with underwriting and investments in talent, technology and data, to support more consistent growth. He also cited the potential for strong bottom-line growth in 2027.
Credit-risk leadership and dividend
- Regional Management terminated Manish Parmar, executive vice president and chief credit risk officer, without cause, effective Oct. 28. His departure qualifies for benefits under the company’s severance plan, subject to his compliance with its restrictive covenants.
- Elizabeth Canini was appointed chief credit risk officer, effective Nov. 2. She is expected to lead the credit organization as the company implements its underwriting and fraud-control measures.
- The board declared a quarterly cash dividend of $0.30 per share, payable Dec. 16 to shareholders of record at the close of business Nov. 18.
The disclosed results point to a portfolio increasingly weighted toward large and auto-secured loans, while small-loan balances contract. Credit losses improved from the prior quarter but remained above year-ago levels, against which the company is tightening underwriting and changing credit-risk leadership.