Regional Management Corp. Announces Third Quarter 2026 Results
Credit losses improved sequentially but remained above the prior-year rate as revenue and earnings grew.
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- Net income of
- Year-to-date net income and diluted earnings per share up
- Record total revenue of
- Annualized operating expense ratio improved 20 basis points year-over-year -
“Our third quarter results reflect steady execution against the priorities we outlined in July,” said Lakhbir S. Lamba, President and Chief Executive Officer of Regional Management Corp. “We grew the portfolio in line with our expectations, generated record revenue supported by fee income from our bank partnership, and earned net income of
“Our net credit loss rate for the third quarter of 2026 was
“Our bank partnership is becoming central to how we compete,” added Mr. Lamba. “Since we last reported, we have extended the program to three additional states, and we continue to expand it across our footprint. The partnership allows us to further refine our pricing strategy to support growth, credit performance, and attractive risk-adjusted returns over time. Together with disciplined underwriting and our investments in talent, technology, and data, it positions Regional for more consistent growth and higher returns, including strong growth on our bottom line in 2027.”
Third Quarter 2026 Highlights
-
Net income for the third quarter of 2026 was
$15.1 million $1.61 5.3% and13.4% year-over-year, respectively.
-
Net finance receivables as of September 30, 2026 were
$2.2 billion $156.9 million 7.6% , from the prior-year period and$61.7 million
-
Total originations of
$530.3 million 5.3% sequentially and1.5% from the prior-year period. Large loan originations increased11.8% from the prior-year period, while small loan originations decreased21.9% , reflecting tighter underwriting in higher-risk segments.
-
Large loan net finance receivables of
$1.7 billion $229.9 million 15.2% , from the prior-year period and represented78.8% of the total loan portfolio, compared to73.7% in the prior-year period.
-
Auto-secured net finance receivables of
$345.0 million $69.5 million 25.2% , from the prior-year period and represented15.6% of the total loan portfolio, compared to13.4% in the prior-year period.
-
Small loan net finance receivables of
$467.9 million $73.0 million 13.5% , from the prior-year period and represented21.2% of the total loan portfolio, compared to26.3% in the prior-year period.
-
Record quarterly total revenue of
$178.8 million $13.3 million 8.0% , from the prior-year period, primarily due to growth in average net finance receivables and an increase in fee income from bank partnership originations.
-
Total revenue yield (annualized total revenue as a percentage of average net finance receivables) for the third quarter of 2026 was
32.9% , increasing 110 basis points sequentially, driven by fee income from bank partnership originations and seasonality. Total revenue yield decreased 20 basis points from the prior-year period, as lower interest and fee yield and lower insurance income were largely offset by approximately 120 basis points of fee income from bank partnership originations.
-
Interest and fee yield (annualized interest and fee income as a percentage of average net finance receivables) for the third quarter of 2026 was
28.7% , compared to29.7% in the prior-year period, a decrease of 100 basis points primarily due to product mix shift toward larger and auto-secured loans, which carry lower yields and lower loss rates, as well as pricing changes and the impact of higher credit losses on revenue.
-
Provision for credit losses for the third quarter of 2026 was
$66.2 million $5.7 million 9.4% , from the prior-year period, driven by higher net credit losses, partially offset by a smaller reserve build than in the prior-year period.
-
The net credit loss rate (annualized net credit losses as a percentage of average net finance receivables) for the third quarter of 2026 was
10.9% , a 130 basis point decrease sequentially and a 70 basis point increase compared to10.2% in the prior-year period. The year-over-year increase was concentrated in specific segments of the portfolio, primarily loans originated in 2025, with the digital affiliate channel being the largest driver.
-
The provision for credit losses for the third quarter of 2026 included a sequential reserve increase of
$6.8 million
-
The allowance for credit losses was
$230.8 million 10.4% of net finance receivables, consistent sequentially and up 10 basis points compared to10.3% in the prior-year period.
-
As of September 30, 2026, 30+ day contractual delinquencies totaled
$165.8 million 7.5% of net finance receivables, a 50 basis point increase both sequentially and year-over-year.
-
The 30+ day contractual delinquency rate on the company’s higher-quality auto-secured portfolio was
2.2% as of September 30, 2026.
-
General and administrative expenses for the third quarter of 2026 were
$68.6 million $4.6 million 12.6% , an improvement of 20 basis points from12.8% in the prior-year period, despite approximately 40 basis points of upfront origination costs associated with bank partnership loans.
-
In the third quarter of 2026, the company repurchased 265,645 shares of its common stock at a weighted-average price of
$37.64
Strategic Highlights
During the third quarter, the company continued to expand its bank partnership program with Column N.A., a nationally chartered bank, under which Column has originated more than
The company also advanced initiatives to strengthen credit performance and operating efficiency. Enhanced fraud controls introduced in June include third-party fraud scores, step-up identity verification, and a dedicated central fraud operations team, and the company’s new proprietary origination scorecard is now live in the majority of its states. The company’s new branch loan origination platform will be live in all branches during the fourth quarter. In collections, the company has centralized the management of late-stage delinquent accounts, enabling its branches to focus on sales and early-stage delinquency, and has deployed enhanced contact data, branded calling, and AI-enabled tools to improve customer engagement, cure rates, and collection efficiency.
In July 2026, the company launched end-to-end digital lending, enabling customers to complete the entire loan process online. The company is scaling the channel with discipline, expanding only as credit performance validates its risk-adjusted return expectations. Over time, the company expects digital originations to complement its branch network, which remains at the core of its operations, and to become an important contributor to growth.
Fourth Quarter 2026 Dividend
The company’s Board of Directors has declared a dividend of
Liquidity and Capital Resources
As of September 30, 2026, the company had net finance receivables of
-
$225.8 million $355 million -
$232.8 million $425 million -
$1.3 billion
As of September 30, 2026, the company’s unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was
The company had a funded debt-to-equity ratio of 4.6 to 1.0 and a stockholders’ equity ratio of
Conference Call Information
Regional Management Corp. will host a conference call and webcast today at 5:00 PM ET to discuss these results.
The dial-in number for the conference call is (877) 407-0752 (toll-free) or (201) 389-0912 (international). Please dial the number 10 minutes prior to the scheduled start time.
*** A supplemental slide presentation will be made available on Regional’s website prior to the earnings call at www.RegionalManagement.com. ***
In addition, a live webcast of the conference call will be available on Regional’s website at www.RegionalManagement.com.
A webcast replay of the call will be available at www.RegionalManagement.com for one year following the call.
About Regional Management Corp.
Regional Management Corp. (NYSE: RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name “Regional Finance” online and in branch locations in 20 states across
Forward-Looking Statements
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead represent Regional Management Corp.’s expectations or beliefs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlooks or future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “outlook,” and similar expressions may be used to identify these forward-looking statements. Such forward-looking statements speak only as of the date on which they were made and are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. As a result, actual performance and results may differ materially from those contemplated by these forward-looking statements. Therefore, investors should not place undue reliance on forward-looking statements.
Factors that could cause actual results or performance to differ from the expectations expressed or implied in forward-looking statements include, but are not limited to, the following: managing growth effectively, implementing Regional Management’s growth strategy, opening new branches as planned, and continuing to expand our lending partnership with Column N.A.; Regional Management’s convenience check strategy; Regional Management’s policies and procedures for underwriting, processing, and servicing loans; Regional Management’s ability to collect on its loan portfolio; Regional Management’s insurance operations; exposure to credit risk and repayment risk, which risks may increase in light of adverse or recessionary economic conditions; the implementation of evolving underwriting models and processes, including as to the effectiveness of Regional Management's custom scorecards; changes in the competitive environment in which Regional Management operates or a decrease in the demand for its products; the geographic concentration of Regional Management’s loan portfolio; the failure of third-party service providers, including those providing information technology products; changes in economic conditions in the markets Regional Management serves, including levels of unemployment and bankruptcies; the ability to achieve successful acquisitions and strategic alliances; the ability to realize the anticipated benefits from our lending partnership with Column N.A.; the ability to make technological improvements as quickly as competitors; security breaches, cyber-attacks, failures in information systems, or fraudulent activity; the development and use of artificial intelligence; the ability to originate loans; reliance on information technology resources and providers, including the risk of prolonged system outages; changes in current revenue and expense trends, including trends affecting delinquencies and credit losses; any future public health crises, including the impact of such crisis on our operations and financial condition; changes in operating and administrative expenses; the departure, transition, or replacement of key personnel; the ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support Regional Management’s operations and initiatives; changes in interest rates; existing sources of liquidity may become insufficient or access to these sources may become unexpectedly restricted; exposure to financial risk due to asset-backed securitization transactions; risks related to regulation and legal proceedings, including changes in laws or regulations or in the interpretation or enforcement of laws or regulations; changes in accounting standards, rules, and interpretations and the failure of related assumptions and estimates; the impact of changes in tax laws and guidance, including the timing and amount of revenues that may be recognized; risks related to the ownership of Regional Management’s common stock, including volatility in the market price of shares of Regional Management’s common stock; the timing and amount of future cash dividend payments; and anti-takeover provisions in Regional Management’s charter documents and applicable state law.
The foregoing factors and others are discussed in greater detail in Regional Management’s filings with the Securities and Exchange Commission. Regional Management will not update or revise forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments, or otherwise, except as required by law. Regional Management is not responsible for changes made to this document by wire services or Internet services.
Regional Management Corp. and Subsidiaries Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share amounts) |
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Better (Worse) |
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Better (Worse) |
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||||||||||||
|
3Q 26 |
|
3Q 25 |
|
$ |
|
% |
|
YTD 26 |
|
YTD 25 |
|
$ |
|
% |
|
||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest and fee income |
$ |
155,747 |
|
$ |
148,672 |
|
$ |
7,075 |
|
|
4.8 |
% |
$ |
456,321 |
|
$ |
425,920 |
|
$ |
30,401 |
|
|
7.1 |
% |
Insurance income, net |
|
10,727 |
|
|
11,391 |
|
|
(664 |
) |
|
(5.8 |
)% |
|
33,513 |
|
|
34,187 |
|
|
(674 |
) |
|
(2.0 |
)% |
Other income |
|
12,302 |
|
|
5,424 |
|
|
6,878 |
|
|
126.8 |
% |
|
24,238 |
|
|
15,789 |
|
|
8,449 |
|
|
53.5 |
% |
Total revenue |
|
178,776 |
|
|
165,487 |
|
|
13,289 |
|
|
8.0 |
% |
|
514,072 |
|
|
475,896 |
|
|
38,176 |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
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||||||||
Expenses |
|
|
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|
|
|
|
|
|
|
|
|
||||||||
Provision for credit losses |
|
66,163 |
|
|
60,474 |
|
|
(5,689 |
) |
|
(9.4 |
)% |
|
200,037 |
|
|
179,053 |
|
|
(20,984 |
) |
|
(11.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Personnel |
|
40,546 |
|
|
39,517 |
|
|
(1,029 |
) |
|
(2.6 |
)% |
|
119,321 |
|
|
119,243 |
|
|
(78 |
) |
|
(0.1 |
)% |
Occupancy |
|
7,451 |
|
|
7,160 |
|
|
(291 |
) |
|
(4.1 |
)% |
|
22,182 |
|
|
20,977 |
|
|
(1,205 |
) |
|
(5.7 |
)% |
Marketing |
|
5,312 |
|
|
4,212 |
|
|
(1,100 |
) |
|
(26.1 |
)% |
|
14,382 |
|
|
14,677 |
|
|
295 |
|
|
2.0 |
% |
Other |
|
15,318 |
|
|
13,179 |
|
|
(2,139 |
) |
|
(16.2 |
)% |
|
42,850 |
|
|
38,159 |
|
|
(4,691 |
) |
|
(12.3 |
)% |
Total general and administrative |
|
68,627 |
|
|
64,068 |
|
|
(4,559 |
) |
|
(7.1 |
)% |
|
198,735 |
|
|
193,056 |
|
|
(5,679 |
) |
|
(2.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
24,148 |
|
|
21,971 |
|
|
(2,177 |
) |
|
(9.9 |
)% |
|
70,064 |
|
|
62,168 |
|
|
(7,896 |
) |
|
(12.7 |
)% |
Income before income taxes |
|
19,838 |
|
|
18,974 |
|
|
864 |
|
|
4.6 |
% |
|
45,236 |
|
|
41,619 |
|
|
3,617 |
|
|
8.7 |
% |
Income taxes |
|
4,725 |
|
|
4,618 |
|
|
(107 |
) |
|
(2.3 |
)% |
|
10,569 |
|
|
10,116 |
|
|
(453 |
) |
|
(4.5 |
)% |
Net income |
$ |
15,113 |
|
$ |
14,356 |
|
$ |
757 |
|
|
5.3 |
% |
$ |
34,667 |
|
$ |
31,503 |
|
$ |
3,164 |
|
|
10.0 |
% |
Net income per common share: |
|
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|
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|
||||||||
Basic |
$ |
1.68 |
|
$ |
1.53 |
|
$ |
0.15 |
|
|
9.8 |
% |
$ |
3.83 |
|
$ |
3.32 |
|
$ |
0.51 |
|
|
15.4 |
% |
Diluted |
$ |
1.61 |
|
$ |
1.42 |
|
$ |
0.19 |
|
|
13.4 |
% |
$ |
3.63 |
|
$ |
3.15 |
|
$ |
0.48 |
|
|
15.2 |
% |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
8,975 |
|
|
9,370 |
|
|
395 |
|
|
4.2 |
% |
|
9,041 |
|
|
9,493 |
|
|
452 |
|
|
4.8 |
% |
Diluted |
|
9,362 |
|
|
10,133 |
|
|
771 |
|
|
7.6 |
% |
|
9,542 |
|
|
10,000 |
|
|
458 |
|
|
4.6 |
% |
Return on average assets (annualized) |
|
2.8 |
% |
|
2.9 |
% |
|
|
|
|
|
2.2 |
% |
|
2.2 |
% |
|
|
|
|
||||
Return on average equity (annualized) |
|
15.9 |
% |
|
15.6 |
% |
|
|
|
|
|
12.3 |
% |
|
11.7 |
% |
|
|
|
|
||||
Regional Management Corp. and Subsidiaries Consolidated Balance Sheets (Unaudited) (dollars in thousands, except par value amounts) |
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Increase (Decrease) |
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||||||
|
3Q 26 |
|
3Q 25 |
|
$ |
|
% |
|
||||
Assets |
|
|
|
|
|
|
|
|
||||
Cash |
$ |
7,628 |
|
$ |
4,084 |
|
$ |
3,544 |
|
|
86.8 |
% |
Net finance receivables |
|
2,209,925 |
|
|
2,053,017 |
|
|
156,908 |
|
|
7.6 |
% |
Unearned insurance premiums |
|
(49,073 |
) |
|
(50,987 |
) |
|
1,914 |
|
|
3.8 |
% |
Allowance for credit losses |
|
(230,800 |
) |
|
(212,000 |
) |
|
(18,800 |
) |
|
(8.9 |
)% |
Net finance receivables, less unearned insurance premiums and allowance for credit losses |
|
1,930,052 |
|
|
1,790,030 |
|
|
140,022 |
|
|
7.8 |
% |
Restricted cash |
|
133,276 |
|
|
104,459 |
|
|
28,817 |
|
|
27.6 |
% |
Lease assets |
|
45,903 |
|
|
40,782 |
|
|
5,121 |
|
|
12.6 |
% |
Intangible assets |
|
36,355 |
|
|
30,385 |
|
|
5,970 |
|
|
19.6 |
% |
Restricted available-for-sale investments |
|
24,015 |
|
|
22,344 |
|
|
1,671 |
|
|
7.5 |
% |
Property and equipment |
|
12,576 |
|
|
12,996 |
|
|
(420 |
) |
|
(3.2 |
)% |
Deferred tax assets, net |
|
— |
|
|
587 |
|
|
(587 |
) |
|
(100.0 |
)% |
Other assets |
|
20,634 |
|
|
22,599 |
|
|
(1,965 |
) |
|
(8.7 |
)% |
Total assets |
$ |
2,210,439 |
|
$ |
2,028,266 |
|
$ |
182,173 |
|
|
9.0 |
% |
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
||||
Liabilities: |
|
|
|
|
|
|
|
|
||||
Debt |
$ |
1,749,991 |
|
$ |
1,581,992 |
|
$ |
167,999 |
|
|
10.6 |
% |
Unamortized debt issuance costs |
|
(4,141 |
) |
|
(7,521 |
) |
|
3,380 |
|
|
44.9 |
% |
Net debt |
|
1,745,850 |
|
|
1,574,471 |
|
|
171,379 |
|
|
10.9 |
% |
Lease liabilities |
|
48,018 |
|
|
42,906 |
|
|
5,112 |
|
|
11.9 |
% |
Deferred tax liabilities, net |
|
1,090 |
|
|
— |
|
|
1,090 |
|
|
100.0 |
% |
Accounts payable and accrued expenses |
|
34,131 |
|
|
38,971 |
|
|
(4,840 |
) |
|
(12.4 |
)% |
Total liabilities |
|
1,829,089 |
|
|
1,656,348 |
|
|
172,741 |
|
|
10.4 |
% |
Stockholders’ equity: |
|
|
|
|
|
|
|
|
||||
Preferred stock ( |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Common stock ( |
|
1,541 |
|
|
1,522 |
|
|
19 |
|
|
1.2 |
% |
Additional paid-in capital |
|
144,101 |
|
|
139,868 |
|
|
4,233 |
|
|
3.0 |
% |
Retained earnings |
|
436,623 |
|
|
400,844 |
|
|
35,779 |
|
|
8.9 |
% |
Accumulated other comprehensive loss |
|
(392 |
) |
|
(10 |
) |
|
(382 |
) |
|
(3,820.0 |
)% |
Treasury stock (6,224 shares at September 30, 2026 and 5,417 shares at
|
|
(200,523 |
) |
|
(170,306 |
) |
|
(30,217 |
) |
|
(17.7 |
)% |
Total stockholders’ equity |
|
381,350 |
|
|
371,918 |
|
|
9,432 |
|
|
2.5 |
% |
Total liabilities and stockholders’ equity |
$ |
2,210,439 |
|
$ |
2,028,266 |
|
$ |
182,173 |
|
|
9.0 |
% |
Regional Management Corp. and Subsidiaries Selected Financial Data (Unaudited) (dollars in thousands, except per share amounts) |
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|
|
Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
QoQ $
|
|
|
QoQ %
|
|
|
3Q 25 |
|
|
YoY $
|
|
|
YoY %
|
|
|||||||
Large loans |
|
$ |
1,742,013 |
|
|
$ |
1,659,685 |
|
|
$ |
82,328 |
|
|
|
5.0 |
% |
|
$ |
1,512,140 |
|
|
$ |
229,873 |
|
|
|
15.2 |
% |
Small loans |
|
|
467,912 |
|
|
|
488,568 |
|
|
|
(20,656 |
) |
|
|
(4.2 |
)% |
|
|
540,877 |
|
|
|
(72,965 |
) |
|
|
(13.5 |
)% |
Total |
|
$ |
2,209,925 |
|
|
$ |
2,148,253 |
|
|
$ |
61,672 |
|
|
|
2.9 |
% |
|
$ |
2,053,017 |
|
|
$ |
156,908 |
|
|
|
7.6 |
% |
Number of branches |
|
|
354 |
|
|
|
357 |
|
|
|
(3 |
) |
|
|
(0.8 |
)% |
|
|
349 |
|
|
|
5 |
|
|
|
1.4 |
% |
Net finance receivables per branch |
|
$ |
6,243 |
|
|
$ |
6,018 |
|
|
$ |
225 |
|
|
|
3.7 |
% |
|
$ |
5,883 |
|
|
$ |
360 |
|
|
|
6.1 |
% |
|
|
Average Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
QoQ $
|
|
|
QoQ %
|
|
|
3Q 25 |
|
|
YoY $
|
|
|
YoY %
|
|
|||||||
Large loans |
|
$ |
1,697,088 |
|
|
$ |
1,620,686 |
|
|
$ |
76,402 |
|
|
|
4.7 |
% |
|
$ |
1,460,187 |
|
|
$ |
236,901 |
|
|
|
16.2 |
% |
Small loans |
|
|
473,659 |
|
|
|
494,693 |
|
|
|
(21,034 |
) |
|
|
(4.3 |
)% |
|
|
541,201 |
|
|
|
(67,542 |
) |
|
|
(12.5 |
)% |
Total |
|
$ |
2,170,747 |
|
|
$ |
2,115,379 |
|
|
$ |
55,368 |
|
|
|
2.6 |
% |
|
$ |
2,001,388 |
|
|
$ |
169,359 |
|
|
|
8.5 |
% |
|
|
Revenue Yields (1) |
|
|||||||||||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
QoQ
|
|
|
3Q 25 |
|
|
YoY
|
|
|||||
Large loans |
|
|
27.0 |
% |
|
|
26.6 |
% |
|
|
0.4 |
% |
|
|
27.1 |
% |
|
|
(0.1 |
)% |
Small loans |
|
|
34.7 |
% |
|
|
34.3 |
% |
|
|
0.4 |
% |
|
|
36.7 |
% |
|
|
(2.0 |
)% |
Total interest and fee yield |
|
|
28.7 |
% |
|
|
28.4 |
% |
|
|
0.3 |
% |
|
|
29.7 |
% |
|
|
(1.0 |
)% |
Total revenue yield |
|
|
32.9 |
% |
|
|
31.8 |
% |
|
|
1.1 |
% |
|
|
33.1 |
% |
|
|
(0.2 |
)% |
(1) |
Annualized as a percentage of average net finance receivables. |
|
|
Components of Increase in Interest and Fee Income |
|
|||||||||||||
|
|
3Q 26 Compared to 3Q 25 |
|
|||||||||||||
|
|
Increase (Decrease) |
|
|||||||||||||
|
|
Volume |
|
|
Rate |
|
|
Volume & Rate |
|
|
Total |
|
||||
Large loans |
|
$ |
16,057 |
|
|
$ |
(297 |
) |
|
$ |
(49 |
) |
|
$ |
15,711 |
|
Small loans |
|
|
(6,203 |
) |
|
|
(2,780 |
) |
|
|
347 |
|
|
|
(8,636 |
) |
Product mix |
|
|
2,727 |
|
|
|
(1,999 |
) |
|
|
(728 |
) |
|
|
— |
|
Total |
|
$ |
12,581 |
|
|
$ |
(5,076 |
) |
|
$ |
(430 |
) |
|
$ |
7,075 |
|
|
|
Loans Originated (1) |
|
|||||||||||||||||||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
QoQ $
|
|
|
QoQ %
|
|
|
3Q 25 |
|
|
YoY $
|
|
|
YoY %
|
|
|||||||
Large loans |
|
$ |
405,935 |
|
|
$ |
371,319 |
|
|
$ |
34,616 |
|
|
|
9.3 |
% |
|
$ |
363,055 |
|
|
$ |
42,880 |
|
|
|
11.8 |
% |
Small loans |
|
|
124,316 |
|
|
|
132,316 |
|
|
|
(8,000 |
) |
|
|
(6.0 |
)% |
|
|
159,210 |
|
|
|
(34,894 |
) |
|
|
(21.9 |
)% |
Total |
|
$ |
530,251 |
|
|
$ |
503,635 |
|
|
$ |
26,616 |
|
|
|
5.3 |
% |
|
$ |
522,265 |
|
|
$ |
7,986 |
|
|
|
1.5 |
% |
(1) |
Represents the principal balance of loan originations, refinancings, and purchases. |
|
|
Other Key Metrics |
|
|||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
3Q 25 |
|
|||
Net credit losses |
|
$ |
59,363 |
|
|
$ |
64,506 |
|
|
$ |
51,274 |
|
Percentage of average net finance receivables (annualized) |
|
|
10.9 |
% |
|
|
12.2 |
% |
|
|
10.2 |
% |
Provision for credit losses |
|
$ |
66,163 |
|
|
$ |
69,006 |
|
|
$ |
60,474 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.2 |
% |
|
|
13.0 |
% |
|
|
12.1 |
% |
Percentage of total revenue |
|
|
37.0 |
% |
|
|
41.1 |
% |
|
|
36.5 |
% |
General and administrative expenses |
|
$ |
68,627 |
|
|
$ |
65,444 |
|
|
$ |
64,068 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.6 |
% |
|
|
12.4 |
% |
|
|
12.8 |
% |
Percentage of total revenue |
|
|
38.4 |
% |
|
|
39.0 |
% |
|
|
38.7 |
% |
Same store results (1): |
|
|
|
|
|
|
|
|
|
|||
Net finance receivables at period-end |
|
$ |
2,186,565 |
|
|
$ |
2,135,915 |
|
|
$ |
2,000,665 |
|
Net finance receivable growth rate |
|
|
6.7 |
% |
|
|
9.0 |
% |
|
|
9.9 |
% |
Number of branches in calculation |
|
|
340 |
|
|
|
345 |
|
|
|
333 |
|
(1) |
Same store sales reflect the change in year-over-year sales for the comparable branch base. The comparable branch base includes those branches open for at least one year. |
|
|
Contractual Delinquency by Aging |
|
|||||||||||||||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
3Q 25 |
|
|||||||||||||||
Allowance for credit losses |
|
$ |
230,800 |
|
|
|
10.4 |
% |
|
$ |
224,000 |
|
|
|
10.4 |
% |
|
$ |
212,000 |
|
|
|
10.3 |
% |
|
|
|
1,860,883 |
|
|
|
84.2 |
% |
|
|
1,824,145 |
|
|
|
84.9 |
% |
|
|
1,740,356 |
|
|
|
84.8 |
% |
1 to 29 days past due |
|
|
183,257 |
|
|
|
8.3 |
% |
|
|
174,752 |
|
|
|
8.1 |
% |
|
|
168,380 |
|
|
|
8.2 |
% |
Delinquent accounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
30 to 59 days |
|
|
43,967 |
|
|
|
2.0 |
% |
|
|
40,971 |
|
|
|
2.0 |
% |
|
|
40,100 |
|
|
|
1.9 |
% |
60 to 89 days |
|
|
36,937 |
|
|
|
1.7 |
% |
|
|
32,763 |
|
|
|
1.5 |
% |
|
|
31,914 |
|
|
|
1.6 |
% |
90 to 119 days |
|
|
31,585 |
|
|
|
1.4 |
% |
|
|
26,497 |
|
|
|
1.2 |
% |
|
|
26,304 |
|
|
|
1.2 |
% |
120 to 149 days |
|
|
27,927 |
|
|
|
1.3 |
% |
|
|
24,404 |
|
|
|
1.1 |
% |
|
|
23,722 |
|
|
|
1.2 |
% |
150 to 179 days |
|
|
25,369 |
|
|
|
1.1 |
% |
|
|
24,721 |
|
|
|
1.2 |
% |
|
|
22,241 |
|
|
|
1.1 |
% |
Total delinquency |
|
$ |
165,785 |
|
|
|
7.5 |
% |
|
$ |
149,356 |
|
|
|
7.0 |
% |
|
$ |
144,281 |
|
|
|
7.0 |
% |
Total net finance receivables |
|
$ |
2,209,925 |
|
|
|
100.0 |
% |
|
$ |
2,148,253 |
|
|
|
100.0 |
% |
|
$ |
2,053,017 |
|
|
|
100.0 |
% |
|
|
Contractual Delinquency by Product |
|
|||||||||||||||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
3Q 25 |
|
|||||||||||||||
Large loans |
|
$ |
111,586 |
|
|
|
6.4 |
% |
|
$ |
97,228 |
|
|
|
5.9 |
% |
|
$ |
85,865 |
|
|
|
5.7 |
% |
Small loans |
|
|
54,199 |
|
|
|
11.6 |
% |
|
|
52,128 |
|
|
|
10.7 |
% |
|
|
58,416 |
|
|
|
10.8 |
% |
Total |
|
$ |
165,785 |
|
|
|
7.5 |
% |
|
$ |
149,356 |
|
|
|
7.0 |
% |
|
$ |
144,281 |
|
|
|
7.0 |
% |
|
Income Statement Quarterly Trend |
|
|||||||||||||||||||
|
3Q 25 |
|
4Q 25 |
|
1Q 26 |
|
2Q 26 |
|
3Q 26 |
|
QoQ $
|
|
YoY $
|
|
|||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest and fee income |
$ |
148,672 |
|
$ |
153,029 |
|
$ |
150,296 |
|
$ |
150,278 |
|
$ |
155,747 |
|
$ |
5,469 |
|
$ |
7,075 |
|
Insurance income, net |
|
11,391 |
|
|
11,386 |
|
|
11,810 |
|
|
10,976 |
|
|
10,727 |
|
|
(249 |
) |
|
(664 |
) |
Other income |
|
5,424 |
|
|
5,287 |
|
|
5,184 |
|
|
6,752 |
|
|
12,302 |
|
|
5,550 |
|
|
6,878 |
|
Total revenue |
|
165,487 |
|
|
169,702 |
|
|
167,290 |
|
|
168,006 |
|
|
178,776 |
|
|
10,770 |
|
|
13,289 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Provision for credit losses |
|
60,474 |
|
|
66,379 |
|
|
64,868 |
|
|
69,006 |
|
|
66,163 |
|
|
2,843 |
|
|
(5,689 |
) |
|
|
39,517 |
|
|
40,394 |
|
|
39,342 |
|
|
39,433 |
|
|
40,546 |
|
|
(1,113 |
) |
|
(1,029 |
) |
Occupancy |
|
7,160 |
|
|
7,227 |
|
|
7,479 |
|
|
7,252 |
|
|
7,451 |
|
|
(199 |
) |
|
(291 |
) |
Marketing |
|
4,212 |
|
|
3,874 |
|
|
4,181 |
|
|
4,889 |
|
|
5,312 |
|
|
(423 |
) |
|
(1,100 |
) |
Other |
|
13,179 |
|
|
13,024 |
|
|
13,662 |
|
|
13,870 |
|
|
15,318 |
|
|
(1,448 |
) |
|
(2,139 |
) |
Total general and administrative |
|
64,068 |
|
|
64,519 |
|
|
64,664 |
|
|
65,444 |
|
|
68,627 |
|
|
(3,183 |
) |
|
(4,559 |
) |
|
|
21,971 |
|
|
22,646 |
|
|
22,923 |
|
|
22,993 |
|
|
24,148 |
|
|
(1,155 |
) |
|
(2,177 |
) |
Income before income taxes |
|
18,974 |
|
|
16,158 |
|
|
14,835 |
|
|
10,563 |
|
|
19,838 |
|
|
9,275 |
|
|
864 |
|
Income taxes |
|
4,618 |
|
|
3,249 |
|
|
3,434 |
|
|
2,410 |
|
|
4,725 |
|
|
(2,315 |
) |
|
(107 |
) |
Net income |
$ |
14,356 |
|
$ |
12,909 |
|
$ |
11,401 |
|
$ |
8,153 |
|
$ |
15,113 |
|
$ |
6,960 |
|
$ |
757 |
|
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
1.53 |
|
$ |
1.40 |
|
$ |
1.24 |
|
$ |
0.91 |
|
$ |
1.68 |
|
$ |
0.77 |
|
$ |
0.15 |
|
Diluted |
$ |
1.42 |
|
$ |
1.30 |
|
$ |
1.18 |
|
$ |
0.85 |
|
$ |
1.61 |
|
$ |
0.76 |
|
$ |
0.19 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
9,370 |
|
|
9,233 |
|
|
9,163 |
|
|
8,988 |
|
|
8,975 |
|
|
13 |
|
|
395 |
|
Diluted |
|
10,133 |
|
|
9,941 |
|
|
9,662 |
|
|
9,604 |
|
|
9,362 |
|
|
242 |
|
|
771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Balance Sheet & Other Key Metrics Quarterly Trends |
|
|||||||||||||||||||
|
3Q 25 |
|
4Q 25 |
|
1Q 26 |
|
2Q 26 |
|
3Q 26 |
|
QoQ $
|
|
YoY $
|
|
|||||||
Total assets |
$ |
2,028,266 |
|
$ |
2,103,930 |
|
$ |
2,072,750 |
|
$ |
2,129,594 |
|
$ |
2,210,439 |
|
$ |
80,845 |
|
$ |
182,173 |
|
Net finance receivables |
$ |
2,053,017 |
|
$ |
2,140,199 |
|
$ |
2,104,001 |
|
$ |
2,148,253 |
|
$ |
2,209,925 |
|
$ |
61,672 |
|
$ |
156,908 |
|
Allowance for credit losses |
$ |
212,000 |
|
$ |
220,900 |
|
$ |
219,500 |
|
$ |
224,000 |
|
$ |
230,800 |
|
$ |
6,800 |
|
$ |
18,800 |
|
Debt |
$ |
1,581,992 |
|
$ |
1,650,764 |
|
$ |
1,621,398 |
|
$ |
1,675,942 |
|
$ |
1,749,991 |
|
$ |
74,049 |
|
$ |
167,999 |
|
Interest and fee yield (1) |
|
29.7 |
% |
|
29.3 |
% |
|
28.3 |
% |
|
28.4 |
% |
|
28.7 |
% |
|
0.3 |
% |
|
(1.0 |
)% |
Efficiency ratio (2) |
|
38.7 |
% |
|
38.0 |
% |
|
38.7 |
% |
|
39.0 |
% |
|
38.4 |
% |
|
(0.6 |
)% |
|
(0.3 |
)% |
Operating expense ratio (3) |
|
12.8 |
% |
|
12.4 |
% |
|
12.2 |
% |
|
12.4 |
% |
|
12.6 |
% |
|
0.2 |
% |
|
(0.2 |
)% |
Delinquency rate (4) |
|
7.0 |
% |
|
7.5 |
% |
|
7.2 |
% |
|
7.0 |
% |
|
7.5 |
% |
|
0.5 |
% |
|
0.5 |
% |
Net credit loss rate (5) |
|
10.2 |
% |
|
11.0 |
% |
|
12.5 |
% |
|
12.2 |
% |
|
10.9 |
% |
|
(1.3 |
)% |
|
0.7 |
% |
Book value per share |
$ |
37.94 |
|
$ |
39.05 |
|
$ |
40.25 |
|
$ |
40.51 |
|
$ |
41.51 |
|
$ |
1.00 |
|
$ |
3.57 |
|
(1) |
Annualized interest and fee income as a percentage of average net finance receivables. |
(2) |
General and administrative expenses as a percentage of total revenue. |
(3) |
Annualized general and administrative expenses as a percentage of average net finance receivables. |
(4) |
Delinquent loans outstanding as a percentage of ending net finance receivables. |
(5) |
Annualized net credit losses as a percentage of average net finance receivables. |
|
|
Average Net Finance Receivables |
|
|||||||||||||
|
|
YTD 26 |
|
|
YTD 25 |
|
|
YoY $
|
|
|
YoY %
|
|
||||
Large loans |
|
$ |
1,637,139 |
|
|
$ |
1,391,470 |
|
|
$ |
245,669 |
|
|
|
17.7 |
% |
Small loans |
|
|
499,586 |
|
|
|
543,402 |
|
|
|
(43,816 |
) |
|
|
(8.1 |
)% |
Total |
|
$ |
2,136,725 |
|
|
$ |
1,934,872 |
|
|
$ |
201,853 |
|
|
|
10.4 |
% |
|
|
Revenue Yields (1) |
|
|||||||||
|
|
YTD 26 |
|
|
YTD 25 |
|
|
YoY
|
|
|||
Large loans |
|
|
26.7 |
% |
|
|
26.6 |
% |
|
|
0.1 |
% |
Small loans |
|
|
34.4 |
% |
|
|
36.4 |
% |
|
|
(2.0 |
)% |
Total interest and fee yield |
|
|
28.5 |
% |
|
|
29.4 |
% |
|
|
(0.9 |
)% |
Total revenue yield |
|
|
32.1 |
% |
|
|
32.8 |
% |
|
|
(0.7 |
)% |
(1) |
Annualized as a percentage of average net finance receivables. |
|
|
Components of Increase in Interest and Fee Income |
|
|||||||||||||
|
|
YTD 26 Compared to YTD 25 |
|
|||||||||||||
|
|
Increase (Decrease) |
|
|||||||||||||
|
|
Volume |
|
|
Rate |
|
|
Volume & Rate |
|
|
Total |
|
||||
Large loans |
|
$ |
49,041 |
|
|
$ |
384 |
|
|
$ |
67 |
|
|
$ |
49,492 |
|
Small loans |
|
|
(11,946 |
) |
|
|
(7,772 |
) |
|
|
627 |
|
|
|
(19,091 |
) |
Product mix |
|
|
7,339 |
|
|
|
(5,319 |
) |
|
|
(2,020 |
) |
|
|
— |
|
Total |
|
$ |
44,434 |
|
|
$ |
(12,707 |
) |
|
$ |
(1,326 |
) |
|
$ |
30,401 |
|
|
|
Loans Originated (1) |
|
|||||||||||||
|
|
YTD 26 |
|
|
YTD 25 |
|
|
YTD $
|
|
|
YTD %
|
|
||||
Large loans |
|
$ |
1,042,714 |
|
|
$ |
941,337 |
|
|
$ |
101,377 |
|
|
|
10.8 |
% |
Small loans |
|
|
379,125 |
|
|
|
483,377 |
|
|
|
(104,252 |
) |
|
|
(21.6 |
)% |
Total |
|
$ |
1,421,839 |
|
|
$ |
1,424,714 |
|
|
$ |
(2,875 |
) |
|
|
(0.2 |
)% |
(1) |
Represents the principal balance of loan originations, refinancings, and purchases. |
|
|
Other Key Metrics |
|
|||||
|
|
YTD 26 |
|
|
YTD 25 |
|
||
Net credit losses |
|
$ |
190,137 |
|
|
$ |
166,553 |
|
Percentage of average net finance receivables (annualized) |
|
|
11.9 |
% |
|
|
11.5 |
% |
Provision for credit losses |
|
$ |
200,037 |
|
|
$ |
179,053 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.5 |
% |
|
|
12.3 |
% |
Percentage of total revenue |
|
|
38.9 |
% |
|
|
37.6 |
% |
General and administrative expenses |
|
$ |
198,735 |
|
|
$ |
193,056 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.4 |
% |
|
|
13.3 |
% |
Percentage of total revenue |
|
|
38.7 |
% |
|
|
40.6 |
% |
Non-GAAP Financial Measures
In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. The company’s management utilizes non-GAAP measures as additional metrics to aid in, and enhance, its understanding of the company’s financial results. Tangible equity and the funded debt-to-tangible equity ratio are non-GAAP measures that adjust GAAP measures to exclude intangible assets. Management uses these equity measures to evaluate and manage the company’s capital and leverage position. The company also believes that these equity measures are commonly used in the financial services industry and provide useful information to users of the company’s financial statements in the evaluation of its capital and leverage position.
This non-GAAP financial information should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. In addition, the company’s non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies. The following table provides a reconciliation of GAAP measures to non-GAAP measures.
|
|
3Q 26 |
|
|
Debt |
|
$ |
1,749,991 |
|
|
|
|
381,350 |
|
Less: Intangible assets |
|
|
36,355 |
|
Tangible equity (non-GAAP) |
|
$ |
344,995 |
|
|
|
|
4.6 |
x |
Funded debt-to-tangible equity ratio (non-GAAP) |
|
|
5.1 |
x |
View source version on businesswire.com: https://www.businesswire.com/news/home/20261028537376/en/
Investor Relations
Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
Source: Regional Management Corp.