Regional Management Corp. revised its full-year guidance downward, now projecting diluted earnings per share growth of 10% to 13% and portfolio growth of 5% to 7%. The company reported second-quarter net income of $8.2 million, or $0.85 per diluted share, with total revenue of $168 million, up 7% year-over-year. Total originations fell 1.3% to $504 million, while ending net finance receivables rose 9.6% to $2.1 billion. Management cited lower-than-expected direct mail response rates, increased competition from fintechs, and deliberate tightening actions, including stronger fraud controls, as factors behind the softer growth. The company also highlighted the full implementation of its Column bank partnership in Texas and the launch of an end-to-end digital lending capability in July.
Regional Management CorpLower-than-expected direct mail response rates and increased competition from fintechs led to reduced guidance for EPS and portfolio growth.