Q2 2026 Regional Management Corp Earnings Call Transcript
Key Points
- Total revenue increased 7% year-over-year to $168 million, driven by continued portfolio growth.
- Operating expense ratio improved by 80 basis points year-over-year to 12.4%, demonstrating strong operating leverage.
- Auto-secured portfolio grew 32% year-over-year, with a 30-plus day delinquency rate of just 2%.
- Bank partnership program with Column is scaling rapidly, with originations exceeding $65 million and expected to improve pre-tax margins by at least 200 basis points.
- Year-to-date net income and diluted EPS are up 14% and 17%, respectively, compared to the first half of last year.
- Portfolio growth fell below expectations due to lower response rates in direct mail campaigns and a more competitive environment.
- Net credit loss rate was modestly above forecast at 12.2%, partly due to slower portfolio growth.
- Total revenue yield declined 110 basis points year-over-year to 31.8%, driven by a mix shift toward larger, lower-yielding loans.
- Full-year guidance was revised downward, with diluted EPS growth now expected at 10% to 13% and portfolio growth at 5% to 7%.
- Funding costs are expected to tick up to 4.5% in the third quarter due to the maturation of lower-cost fixed-rate debt.
Thank you. Greetings. Welcome to the Regional Management second-quarter 2026 earnings call. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to Garrett Edson from Investor Relations. Thank you. You may begin.
Thank you and good afternoon. By now, everyone should have access to our earnings announcement and supplemental presentation, which were released prior to this call and may be found on our website at regionalmanagement.com. Before we begin our formal remarks, I will direct you to page two of our supplemental presentation, which contains important disclosures concerning forward-looking statements and the use of non-GAAP financial measures.
Part of our discussion today may include forward-looking statements, which are based on management's current expectations, estimates, and projections about the company's future financial performance and business prospects. These forward-looking statements speak only as of today and are subject to various
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