Payday Loan & Installment Portfolio Sales & Bad Debt Chargeoffs
$112,000,000 in bad debt sold for $1,700,000 by Regional Management Corp.
Regional Management Corp. (NYSE: RM), a specialty consumer finance company, announced that it has completed the sale of approximately $112 million of its existing charged-off loan portfolio. (Man, that’s gotta hurt!)
Pre-tax proceeds from the one-time sale of the existing charged-off loan portfolio, net of commission and other expenses, were approximately $1.7 million, and will be recognized in the fourth quarter on Regional Management’s income statement as a reduction of its provision for credit losses.
Proceeds from the sale of forward flow charged-off accounts will be received by Regional Management on a monthly basis.
Regional Management Corp. (NYSE: RM) is a diversified specialty consumer finance company providing a broad array of loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies and other traditional lenders.
Regional Management began operations in 1987 with four branches in South Carolina and has since expanded its branch network across South Carolina, Texas, North Carolina, Tennessee, Alabama, Oklahoma, New Mexico and Georgia.
Each of its loan products is structured on a fixed rate, fixed term basis with fully amortizing equal monthly installment payments and is repayable at any time without penalty. Regional Management’s loans are sourced through its multiple channel platform, including in its branches, through direct mail campaigns, independent and franchise automobile dealerships, online credit application networks, retailers and its consumer website.
For more information, please visit http://www.RegionalManagement.com. Contact: Investor Relations Garrett Edson, (203) 682-8331