Earnings, portfolio growth and dividend at Regional Management Corp. (NYSE: RM)
Rhea-AI Filing Summary
Regional Management Corp. reported second-quarter 2026 net income of $8.2 million and diluted EPS of $0.85, down 19.6% and 17.5% year-over-year. Year-to-date, net income rose to $19.6 million and diluted EPS to $2.03, up 14.0% and 17.3% from the prior-year period.
Total revenue for the quarter was $168.0 million, a 6.7% increase driven by growth in average net finance receivables. Net finance receivables reached $2.15 billion, up 9.6% year-over-year, led by large loans of $1.66 billion and an auto-secured portfolio of $323.7 million. Small-loan receivables declined 10.7% to $488.6 million.
The net credit loss rate was 12.2%, up 30 basis points year-over-year, while 30+ day delinquencies were 7.0% of receivables versus 6.6% a year earlier; the allowance for credit losses stood at $224.0 million, or 10.4% of net finance receivables. The operating expense ratio improved to 12.4%, 80 basis points better year-over-year. Debt totaled $1.68 billion, with 80% fixed-rate at a 4.8% weighted-average coupon, unused revolving capacity of $442 million, and available liquidity of $127.9 million.
Strategically, management highlighted a bank partnership with Column N.A. that has originated over $65 million in loans, the launch of an end-to-end digital lending platform, expansion into Florida (its 20th state), and ongoing technology and AI investments. The board declared a quarterly dividend of $0.30 per share, payable September 16, 2026, and management is targeting 2026 net income growth of 6%–9% and EPS growth of 10%–13%.
Positive
- YTD earnings growth and guidance: Year-to-date net income rose 14.0% to $19.6 million and diluted EPS increased 17.3% to $2.03, and management is targeting 2026 net income growth of 6%–9% and EPS growth of 10%–13%.
Negative
- Weaker quarterly profitability and higher credit costs: Second-quarter net income declined 19.6% year-over-year to $8.2 million, while the net credit loss rate increased to 12.2% and 30+ day delinquencies rose to 7.0% of receivables.
Filing Explained
For the quarter ended
8-K Event Classification
Key Figures
Key Terms
net credit loss rate financial
allowance for credit losses financial
funded debt-to-tangible equity ratio financial
auto-secured net finance receivables financial
bank partnership program financial
operating expense ratio financial
Earnings Snapshot
Management targets 2026 year-over-year net income growth of 6%–9%, EPS growth of 10%–13%, and ending net receivables growth of 5%–7%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
(Address of principal executive offices) (zip code)
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class |
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Trading Symbol |
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Name of Each Exchange on Which Registered |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On July 29, 2026, Regional Management Corp. (the “Company”) issued a press release announcing financial results for the three and six months ended June 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. On July 29, 2026, the Company will host a conference call to discuss financial results for the three and six months ended June 30, 2026. A copy of the presentation to be used during the conference call is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
All information in the press release and the presentation is furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition,” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01. Other Events.
On July 29, 2026, the Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.30 per share of outstanding common stock, payable on September 16, 2026 to stockholders of record as of the close of business on August 19, 2026.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
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Description |
99.1 |
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Press Release issued by Regional Management Corp. on July 29, 2026, announcing financial results for Regional Management Corp. for the three and six months ended June 30, 2026. |
99.2 |
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Presentation of Regional Management Corp., dated July 29, 2026. |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Regional Management Corp. |
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Date: July 29, 2026 |
By: |
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/s/ Harpreet Rana |
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Name: |
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Harpreet Rana |
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Title: |
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Executive Vice President and Chief Financial and Administrative Officer |
Exhibit 99.1
Regional Management Corp. Announces Second Quarter 2026 Results
- Quarterly net income of $8.2 million and diluted earnings per share of $0.85 -
- Year-to-date net income and diluted earnings per share up 14% and 17%
year-over-year, respectively -
- Annualized operating expense ratio improves 80 basis points year-over-year -
Greenville, South Carolina – July 29, 2026 – Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the second quarter ended June 30, 2026.
“We delivered strong second quarter revenue of $168 million and improved our operating expense ratio by 80 basis points year-over-year to 12.4%, while growing our higher-quality auto-secured portfolio and returning capital to shareholders,” said Lakhbir S. Lamba, President and Chief Executive Officer of Regional Management Corp. “Year-to-date, net income and diluted earnings per share are up 14% and 17%, respectively. At the same time, portfolio growth fell short of our expectations, and our net credit loss rate was modestly above our forecast, driven in part by slower portfolio growth. These results reflect a more competitive environment for customer acquisition and deliberate decisions to tighten underwriting in segments that did not meet our risk-adjusted return hurdles, which weighed on our near-term origination volumes.”
“We are accelerating execution against our strategic priorities, foremost among them our bank partnership,” continued Mr. Lamba. “We have implemented the partnership in Texas, our largest market, and its early results are very promising. We believe this partnership will be transformative to the reach, economics, and returns of our business and can materially change the trajectory of our net income and returns as we move into 2027. We are building from an even stronger foundation, and I am confident that the disciplined decisions we are making today will drive sustainable and profitable growth over the longer term.”
1
Second Quarter 2026 Highlights
2
Strategic Highlights
During the second quarter, the company continued to scale its bank partnership program with Column N.A., a nationally chartered bank, through which it has originated more than $65 million in loans since the program’s launch. The company has fully implemented the program for branch originations in Texas, its largest state, and plans to extend it to additional states beginning in the second half of 2026, with substantially all of its branch network expected to operate under the program by the end of 2027. Originating in partnership with a nationally chartered bank enables the company to offer more consistent products and pricing nationwide, accelerates its entry into new states, and broadens the base of customers it can serve, while improving loan-level
3
economics as the program scales. Early origination, margin, and credit results have been encouraging.
In July 2026, the company launched an end-to-end digital lending capability that enables customers to complete the entire loan process online, strengthening its omni-channel operating model and its ability to compete with fintech lenders while its branch network remains at the core of its operations. The company intends to scale the capability in a disciplined manner as it confirms strong credit performance and risk-adjusted returns. The company also entered Florida in May 2026, its 20th state, and accelerated investments across its technology and analytics platform, including a new branch loan origination system, an enhanced machine-learning credit model, and the deployment of artificial intelligence in collections and customer service.
Third Quarter 2026 Dividend
The company’s Board of Directors has declared a dividend of $0.30 per common share for the third quarter of 2026. The dividend will be paid on September 16, 2026 to shareholders of record as of the close of business on August 19, 2026. The declaration and payment of any future dividend is subject to the discretion of the Board of Directors and will depend on a variety of factors, including the company’s financial condition and results of operations.
Liquidity and Capital Resources
As of June 30, 2026, the company had net finance receivables of $2.1 billion and debt of $1.7 billion. The debt consisted of:
As of June 30, 2026, the company’s unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was $442 million, or 56.6%, and the company had available liquidity of $127.9 million, including unrestricted cash on hand and immediate availability to draw down cash from its revolving credit facilities. As of June 30, 2026, the company’s fixed-rate debt as a percentage of total debt was 80%, with a weighted-average coupon of 4.8%.
The company had a funded debt-to-equity ratio of 4.4 to 1.0 and a stockholders’ equity ratio of 17.8%, each as of June 30, 2026. On a non-GAAP basis, the company had a funded debt-to-tangible equity ratio of 4.9 to 1.0, as of June 30, 2026. Please refer to the reconciliations of non-GAAP measures to comparable GAAP measures included at the end of this press release.
4
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 the United States. Each of its loan products is structured on a fixed-rate, fixed-term basis with fully amortizing equal monthly installment payments, repayable at any time without penalty. Regional Management sources loans through its multiple channel platform, which includes branches, centrally managed direct mail campaigns, digital partners, and its consumer website. For more information, please visit www.RegionalManagement.com.
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.
5
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.
6
Contact
Investor Relations
Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
7
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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2Q 26 |
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2Q 25 |
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$ |
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% |
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YTD 26 |
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YTD 25 |
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$ |
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% |
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Revenue |
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Interest and fee income |
$ |
150,278 |
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$ |
140,695 |
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$ |
9,583 |
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6.8 |
% |
$ |
300,574 |
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$ |
277,248 |
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$ |
23,326 |
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8.4 |
% |
Insurance income, net |
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10,976 |
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11,499 |
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(523 |
) |
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(4.5 |
)% |
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22,786 |
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22,796 |
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(10 |
) |
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— |
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Other income |
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6,752 |
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5,248 |
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1,504 |
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28.7 |
% |
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11,936 |
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10,365 |
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1,571 |
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15.2 |
% |
Total revenue |
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168,006 |
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157,442 |
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10,564 |
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6.7 |
% |
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335,296 |
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310,409 |
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24,887 |
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8.0 |
% |
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Expenses |
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Provision for credit losses |
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69,006 |
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60,587 |
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(8,419 |
) |
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(13.9 |
)% |
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133,874 |
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118,579 |
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(15,295 |
) |
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(12.9 |
)% |
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Personnel |
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39,433 |
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38,584 |
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(849 |
) |
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(2.2 |
)% |
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78,775 |
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79,726 |
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951 |
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1.2 |
% |
Occupancy |
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7,252 |
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6,911 |
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(341 |
) |
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(4.9 |
)% |
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14,731 |
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13,817 |
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(914 |
) |
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(6.6 |
)% |
Marketing |
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4,889 |
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5,059 |
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170 |
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3.4 |
% |
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9,070 |
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10,465 |
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|
1,395 |
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13.3 |
% |
Other |
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13,870 |
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12,391 |
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(1,479 |
) |
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(11.9 |
)% |
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27,532 |
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24,980 |
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(2,552 |
) |
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(10.2 |
)% |
Total general and administrative |
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65,444 |
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62,945 |
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(2,499 |
) |
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(4.0 |
)% |
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130,108 |
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128,988 |
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(1,120 |
) |
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(0.9 |
)% |
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Interest expense |
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22,993 |
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20,426 |
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(2,567 |
) |
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(12.6 |
)% |
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45,916 |
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40,197 |
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(5,719 |
) |
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(14.2 |
)% |
Income before income taxes |
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10,563 |
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13,484 |
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(2,921 |
) |
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(21.7 |
)% |
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25,398 |
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22,645 |
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|
2,753 |
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|
12.2 |
% |
Income taxes |
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2,410 |
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3,344 |
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934 |
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27.9 |
% |
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5,844 |
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5,498 |
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(346 |
) |
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(6.3 |
)% |
Net income |
$ |
8,153 |
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$ |
10,140 |
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$ |
(1,987 |
) |
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(19.6 |
)% |
$ |
19,554 |
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$ |
17,147 |
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$ |
2,407 |
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14.0 |
% |
Net income per common share: |
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Basic |
$ |
0.91 |
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$ |
1.07 |
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$ |
(0.16 |
) |
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(15.0 |
)% |
$ |
2.15 |
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$ |
1.79 |
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$ |
0.36 |
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20.1 |
% |
Diluted |
$ |
0.85 |
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$ |
1.03 |
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$ |
(0.18 |
) |
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(17.5 |
)% |
$ |
2.03 |
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$ |
1.73 |
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$ |
0.30 |
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17.3 |
% |
Weighted-average common shares outstanding: |
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Basic |
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8,988 |
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9,504 |
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|
516 |
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5.4 |
% |
|
9,075 |
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|
9,556 |
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|
481 |
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5.0 |
% |
Diluted |
|
9,604 |
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|
9,843 |
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|
239 |
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2.4 |
% |
|
9,633 |
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|
9,934 |
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|
301 |
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|
3.0 |
% |
Return on average assets (annualized) |
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1.6 |
% |
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2.1 |
% |
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1.9 |
% |
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1.8 |
% |
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||||
Return on average equity (annualized) |
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8.7 |
% |
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11.3 |
% |
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|
10.4 |
% |
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9.6 |
% |
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8
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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||||||
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2Q 26 |
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2Q 25 |
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$ |
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% |
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||||
Assets |
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Cash |
$ |
6,799 |
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$ |
4,272 |
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$ |
2,527 |
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|
59.2 |
% |
Net finance receivables |
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2,148,253 |
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|
1,960,364 |
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|
187,889 |
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|
9.6 |
% |
Unearned insurance premiums |
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(50,713 |
) |
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(49,046 |
) |
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(1,667 |
) |
|
(3.4 |
)% |
Allowance for credit losses |
|
(224,000 |
) |
|
(202,800 |
) |
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(21,200 |
) |
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(10.5 |
)% |
Net finance receivables, less unearned insurance premiums and allowance for credit losses |
|
1,873,540 |
|
|
1,708,518 |
|
|
165,022 |
|
|
9.7 |
% |
Restricted cash |
|
111,776 |
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|
117,658 |
|
|
(5,882 |
) |
|
(5.0 |
)% |
Lease assets |
|
45,084 |
|
|
42,665 |
|
|
2,419 |
|
|
5.7 |
% |
Intangible assets |
|
34,634 |
|
|
28,810 |
|
|
5,824 |
|
|
20.2 |
% |
Restricted available-for-sale investments |
|
24,206 |
|
|
22,122 |
|
|
2,084 |
|
|
9.4 |
% |
Property and equipment |
|
13,044 |
|
|
13,328 |
|
|
(284 |
) |
|
(2.1 |
)% |
Deferred tax assets, net |
|
— |
|
|
8,367 |
|
|
(8,367 |
) |
|
(100.0 |
)% |
Other assets |
|
20,511 |
|
|
21,391 |
|
|
(880 |
) |
|
(4.1 |
)% |
Total assets |
$ |
2,129,594 |
|
$ |
1,967,131 |
|
$ |
162,463 |
|
|
8.3 |
% |
Liabilities and Stockholders’ Equity |
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Liabilities: |
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||||
Debt |
$ |
1,675,942 |
|
$ |
1,509,133 |
|
$ |
166,809 |
|
|
11.1 |
% |
Unamortized debt issuance costs |
|
(5,617 |
) |
|
(6,862 |
) |
|
1,245 |
|
|
18.1 |
% |
Net debt |
|
1,670,325 |
|
|
1,502,271 |
|
|
168,054 |
|
|
11.2 |
% |
Lease liabilities |
|
47,241 |
|
|
44,768 |
|
|
2,473 |
|
|
5.5 |
% |
Deferred tax liabilities, net |
|
2,588 |
|
|
— |
|
|
2,588 |
|
|
100.0 |
% |
Accounts payable and accrued expenses |
|
31,109 |
|
|
57,141 |
|
|
(26,032 |
) |
|
(45.6 |
)% |
Total liabilities |
|
1,751,263 |
|
|
1,604,180 |
|
|
147,083 |
|
|
9.2 |
% |
Stockholders’ equity: |
|
|
|
|
|
|
|
|
||||
Preferred stock ($0.10 par value, 100,000 shares authorized, none issued or outstanding) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Common stock ($0.10 par value, 1,000,000 shares authorized, 15,298 shares issued and 9,340 shares outstanding at June 30, 2026 and 15,225 shares issued and 9,962 shares outstanding at June 30, 2025) |
|
1,530 |
|
|
1,522 |
|
|
8 |
|
|
0.5 |
% |
Additional paid-in capital |
|
142,805 |
|
|
137,129 |
|
|
5,676 |
|
|
4.1 |
% |
Retained earnings |
|
424,469 |
|
|
389,557 |
|
|
34,912 |
|
|
9.0 |
% |
Accumulated other comprehensive loss |
|
(49 |
) |
|
(2 |
) |
|
(47 |
) |
|
(2,350.0 |
)% |
Treasury stock (5,958 shares at June 30, 2026 and 5,263 shares at |
|
(190,424 |
) |
|
(165,255 |
) |
|
(25,169 |
) |
|
(15.2 |
)% |
Total stockholders’ equity |
|
378,331 |
|
|
362,951 |
|
|
15,380 |
|
|
4.2 |
% |
Total liabilities and stockholders’ equity |
$ |
2,129,594 |
|
$ |
1,967,131 |
|
$ |
162,463 |
|
|
8.3 |
% |
9
Regional Management Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
(dollars in thousands, except per share amounts)
|
|
Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
2Q 26 |
|
|
1Q 26 |
|
|
QoQ $ |
|
|
QoQ % |
|
|
2Q 25 |
|
|
YoY $ |
|
|
YoY % |
|
|||||||
Large loans |
|
$ |
1,659,685 |
|
|
$ |
1,591,528 |
|
|
$ |
68,157 |
|
|
|
4.3 |
% |
|
$ |
1,413,367 |
|
|
$ |
246,318 |
|
|
|
17.4 |
% |
Small loans |
|
|
488,568 |
|
|
|
512,473 |
|
|
|
(23,905 |
) |
|
|
(4.7 |
)% |
|
|
546,997 |
|
|
|
(58,429 |
) |
|
|
(10.7 |
)% |
Total |
|
$ |
2,148,253 |
|
|
$ |
2,104,001 |
|
|
$ |
44,252 |
|
|
|
2.1 |
% |
|
$ |
1,960,364 |
|
|
$ |
187,889 |
|
|
|
9.6 |
% |
Number of branches |
|
|
357 |
|
|
|
355 |
|
|
|
2 |
|
|
|
0.6 |
% |
|
|
352 |
|
|
|
5 |
|
|
|
1.4 |
% |
Net finance receivables per branch |
|
$ |
6,018 |
|
|
$ |
5,927 |
|
|
$ |
91 |
|
|
|
1.5 |
% |
|
$ |
5,569 |
|
|
$ |
449 |
|
|
|
8.1 |
% |
|
|
Average Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
2Q 26 |
|
|
1Q 26 |
|
|
QoQ $ |
|
|
QoQ % |
|
|
2Q 25 |
|
|
YoY $ |
|
|
YoY % |
|
|||||||
Large loans |
|
$ |
1,620,686 |
|
|
$ |
1,592,493 |
|
|
$ |
28,193 |
|
|
|
1.8 |
% |
|
$ |
1,372,783 |
|
|
$ |
247,903 |
|
|
|
18.1 |
% |
Small loans |
|
|
494,693 |
|
|
|
531,037 |
|
|
|
(36,344 |
) |
|
|
(6.8 |
)% |
|
|
540,106 |
|
|
|
(45,413 |
) |
|
|
(8.4 |
)% |
Total |
|
$ |
2,115,379 |
|
|
$ |
2,123,530 |
|
|
$ |
(8,151 |
) |
|
|
(0.4 |
)% |
|
$ |
1,912,889 |
|
|
$ |
202,490 |
|
|
|
10.6 |
% |
|
|
Revenue Yields (1) |
|
|||||||||||||||||
|
|
2Q 26 |
|
|
1Q 26 |
|
|
QoQ |
|
|
2Q 25 |
|
|
YoY |
|
|||||
Large loans |
|
|
26.6 |
% |
|
|
26.3 |
% |
|
|
0.3 |
% |
|
|
26.6 |
% |
|
|
0.0 |
% |
Small loans |
|
|
34.3 |
% |
|
|
34.3 |
% |
|
|
0.0 |
% |
|
|
36.5 |
% |
|
|
(2.2 |
)% |
Total interest and fee yield |
|
|
28.4 |
% |
|
|
28.3 |
% |
|
|
0.1 |
% |
|
|
29.4 |
% |
|
|
(1.0 |
)% |
Total revenue yield |
|
|
31.8 |
% |
|
|
31.5 |
% |
|
|
0.3 |
% |
|
|
32.9 |
% |
|
|
(1.1 |
)% |
(1) Annualized as a percentage of average net finance receivables.
|
|
Components of Increase in Interest and Fee Income |
|
|||||||||||||
|
|
2Q 26 Compared to 2Q 25 |
|
|||||||||||||
|
|
Increase (Decrease) |
|
|||||||||||||
|
|
Volume |
|
|
Rate |
|
|
Volume & Rate |
|
|
Total |
|
||||
Large loans |
|
$ |
16,516 |
|
|
$ |
(95 |
) |
|
$ |
(18 |
) |
|
$ |
16,403 |
|
Small loans |
|
|
(4,140 |
) |
|
|
(2,926 |
) |
|
|
246 |
|
|
|
(6,820 |
) |
Product mix |
|
|
2,517 |
|
|
|
(1,781 |
) |
|
|
(736 |
) |
|
|
— |
|
Total |
|
$ |
14,893 |
|
|
$ |
(4,802 |
) |
|
$ |
(508 |
) |
|
$ |
9,583 |
|
10
|
|
Loans Originated (1) |
|
|||||||||||||||||||||||||
|
|
2Q 26 |
|
|
1Q 26 |
|
|
QoQ $ |
|
|
QoQ % |
|
|
2Q 25 |
|
|
YoY $ |
|
|
YoY % |
|
|||||||
Large loans |
|
$ |
371,319 |
|
|
$ |
265,460 |
|
|
$ |
105,859 |
|
|
|
39.9 |
% |
|
$ |
336,473 |
|
|
$ |
34,846 |
|
|
|
10.4 |
% |
Small loans |
|
|
132,316 |
|
|
|
122,493 |
|
|
|
9,823 |
|
|
|
8.0 |
% |
|
|
173,856 |
|
|
|
(41,540 |
) |
|
|
(23.9 |
)% |
Total |
|
$ |
503,635 |
|
|
$ |
387,953 |
|
|
$ |
115,682 |
|
|
|
29.8 |
% |
|
$ |
510,329 |
|
|
$ |
(6,694 |
) |
|
|
(1.3 |
)% |
(1) Represents the principal balance of loan originations, refinancings, and purchases.
|
|
Other Key Metrics |
|
|||||||||
|
|
2Q 26 |
|
|
1Q 26 |
|
|
2Q 25 |
|
|||
Net credit losses |
|
$ |
64,506 |
|
|
$ |
66,268 |
|
|
$ |
56,887 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.2 |
% |
|
|
12.5 |
% |
|
|
11.9 |
% |
Provision for credit losses |
|
$ |
69,006 |
|
|
$ |
64,868 |
|
|
$ |
60,587 |
|
Percentage of average net finance receivables (annualized) |
|
|
13.0 |
% |
|
|
12.2 |
% |
|
|
12.7 |
% |
Percentage of total revenue |
|
|
41.1 |
% |
|
|
38.8 |
% |
|
|
38.5 |
% |
General and administrative expenses |
|
$ |
65,444 |
|
|
$ |
64,664 |
|
|
$ |
62,945 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.4 |
% |
|
|
12.2 |
% |
|
|
13.2 |
% |
Percentage of total revenue |
|
|
39.0 |
% |
|
|
38.7 |
% |
|
|
40.0 |
% |
Same store results (1): |
|
|
|
|
|
|
|
|
|
|||
Net finance receivables at period-end |
|
$ |
2,135,915 |
|
|
$ |
2,087,752 |
|
|
$ |
1,915,667 |
|
Net finance receivable growth rate |
|
|
9.0 |
% |
|
|
10.7 |
% |
|
|
8.1 |
% |
Number of branches in calculation |
|
|
345 |
|
|
|
345 |
|
|
|
335 |
|
(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 |
|
|||||||||||||||||||||
|
|
2Q 26 |
|
|
1Q 26 |
|
|
2Q 25 |
|
|||||||||||||||
Allowance for credit losses |
|
$ |
224,000 |
|
|
|
10.4 |
% |
|
$ |
219,500 |
|
|
|
10.4 |
% |
|
$ |
202,800 |
|
|
|
10.3 |
% |
|
|
|
1,824,145 |
|
|
|
84.9 |
% |
|
|
1,801,192 |
|
|
|
85.6 |
% |
|
|
1,672,027 |
|
|
|
85.3 |
% |
1 to 29 days past due |
|
|
174,752 |
|
|
|
8.1 |
% |
|
|
151,875 |
|
|
|
7.2 |
% |
|
|
158,951 |
|
|
|
8.1 |
% |
Delinquent accounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
30 to 59 days |
|
|
40,971 |
|
|
|
2.0 |
% |
|
|
35,235 |
|
|
|
1.7 |
% |
|
|
35,362 |
|
|
|
1.8 |
% |
60 to 89 days |
|
|
32,763 |
|
|
|
1.5 |
% |
|
|
32,251 |
|
|
|
1.5 |
% |
|
|
28,949 |
|
|
|
1.5 |
% |
90 to 119 days |
|
|
26,497 |
|
|
|
1.2 |
% |
|
|
28,331 |
|
|
|
1.4 |
% |
|
|
22,348 |
|
|
|
1.1 |
% |
120 to 149 days |
|
|
24,404 |
|
|
|
1.1 |
% |
|
|
27,198 |
|
|
|
1.3 |
% |
|
|
21,625 |
|
|
|
1.1 |
% |
150 to 179 days |
|
|
24,721 |
|
|
|
1.2 |
% |
|
|
27,919 |
|
|
|
1.3 |
% |
|
|
21,102 |
|
|
|
1.1 |
% |
Total delinquency |
|
$ |
149,356 |
|
|
|
7.0 |
% |
|
$ |
150,934 |
|
|
|
7.2 |
% |
|
$ |
129,386 |
|
|
|
6.6 |
% |
Total net finance receivables |
|
$ |
2,148,253 |
|
|
|
100.0 |
% |
|
$ |
2,104,001 |
|
|
|
100.0 |
% |
|
$ |
1,960,364 |
|
|
|
100.0 |
% |
|
|
Contractual Delinquency by Product |
|
|||||||||||||||||||||
|
|
2Q 26 |
|
|
1Q 26 |
|
|
2Q 25 |
|
|||||||||||||||
Large loans |
|
$ |
97,228 |
|
|
|
5.9 |
% |
|
$ |
95,192 |
|
|
|
6.0 |
% |
|
$ |
76,690 |
|
|
|
5.4 |
% |
Small loans |
|
|
52,128 |
|
|
|
10.7 |
% |
|
|
55,742 |
|
|
|
10.9 |
% |
|
|
52,696 |
|
|
|
9.6 |
% |
Total |
|
$ |
149,356 |
|
|
|
7.0 |
% |
|
$ |
150,934 |
|
|
|
7.2 |
% |
|
$ |
129,386 |
|
|
|
6.6 |
% |
11
|
Income Statement Quarterly Trend |
|
|||||||||||||||||||
|
2Q 25 |
|
3Q 25 |
|
4Q 25 |
|
1Q 26 |
|
2Q 26 |
|
QoQ $ |
|
YoY $ |
|
|||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest and fee income |
$ |
140,695 |
|
$ |
148,672 |
|
$ |
153,029 |
|
$ |
150,296 |
|
$ |
150,278 |
|
$ |
(18 |
) |
$ |
9,583 |
|
Insurance income, net |
|
11,499 |
|
|
11,391 |
|
|
11,386 |
|
|
11,810 |
|
|
10,976 |
|
|
(834 |
) |
|
(523 |
) |
Other income |
|
5,248 |
|
|
5,424 |
|
|
5,287 |
|
|
5,184 |
|
|
6,752 |
|
|
1,568 |
|
|
1,504 |
|
Total revenue |
|
157,442 |
|
|
165,487 |
|
|
169,702 |
|
|
167,290 |
|
|
168,006 |
|
|
716 |
|
|
10,564 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Provision for credit losses |
|
60,587 |
|
|
60,474 |
|
|
66,379 |
|
|
64,868 |
|
|
69,006 |
|
|
(4,138 |
) |
|
(8,419 |
) |
|
|
38,584 |
|
|
39,517 |
|
|
40,394 |
|
|
39,342 |
|
|
39,433 |
|
|
(91 |
) |
|
(849 |
) |
Occupancy |
|
6,911 |
|
|
7,160 |
|
|
7,227 |
|
|
7,479 |
|
|
7,252 |
|
|
227 |
|
|
(341 |
) |
Marketing |
|
5,059 |
|
|
4,212 |
|
|
3,874 |
|
|
4,181 |
|
|
4,889 |
|
|
(708 |
) |
|
170 |
|
Other |
|
12,391 |
|
|
13,179 |
|
|
13,024 |
|
|
13,662 |
|
|
13,870 |
|
|
(208 |
) |
|
(1,479 |
) |
Total general and administrative |
|
62,945 |
|
|
64,068 |
|
|
64,519 |
|
|
64,664 |
|
|
65,444 |
|
|
(780 |
) |
|
(2,499 |
) |
|
|
20,426 |
|
|
21,971 |
|
|
22,646 |
|
|
22,923 |
|
|
22,993 |
|
|
(70 |
) |
|
(2,567 |
) |
Income before income taxes |
|
13,484 |
|
|
18,974 |
|
|
16,158 |
|
|
14,835 |
|
|
10,563 |
|
|
(4,272 |
) |
|
(2,921 |
) |
Income taxes |
|
3,344 |
|
|
4,618 |
|
|
3,249 |
|
|
3,434 |
|
|
2,410 |
|
|
1,024 |
|
|
934 |
|
Net income |
$ |
10,140 |
|
$ |
14,356 |
|
$ |
12,909 |
|
$ |
11,401 |
|
$ |
8,153 |
|
$ |
(3,248 |
) |
$ |
(1,987 |
) |
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
1.07 |
|
$ |
1.53 |
|
$ |
1.40 |
|
$ |
1.24 |
|
$ |
0.91 |
|
$ |
(0.33 |
) |
$ |
(0.16 |
) |
Diluted |
$ |
1.03 |
|
$ |
1.42 |
|
$ |
1.30 |
|
$ |
1.18 |
|
$ |
0.85 |
|
$ |
(0.33 |
) |
$ |
(0.18 |
) |
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
9,504 |
|
|
9,370 |
|
|
9,233 |
|
|
9,163 |
|
|
8,988 |
|
|
175 |
|
|
516 |
|
Diluted |
|
9,843 |
|
|
10,133 |
|
|
9,941 |
|
|
9,662 |
|
|
9,604 |
|
|
58 |
|
|
239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Balance Sheet & Other Key Metrics Quarterly Trends |
|
|||||||||||||||||||
|
2Q 25 |
|
3Q 25 |
|
4Q 25 |
|
1Q 26 |
|
2Q 26 |
|
QoQ $ |
|
YoY $ |
|
|||||||
Total assets |
$ |
1,967,131 |
|
$ |
2,028,266 |
|
$ |
2,103,930 |
|
$ |
2,072,750 |
|
$ |
2,129,594 |
|
$ |
56,844 |
|
$ |
162,463 |
|
Net finance receivables |
$ |
1,960,364 |
|
$ |
2,053,017 |
|
$ |
2,140,199 |
|
$ |
2,104,001 |
|
$ |
2,148,253 |
|
$ |
44,252 |
|
$ |
187,889 |
|
Allowance for credit losses |
$ |
202,800 |
|
$ |
212,000 |
|
$ |
220,900 |
|
$ |
219,500 |
|
$ |
224,000 |
|
$ |
4,500 |
|
$ |
21,200 |
|
Debt |
$ |
1,509,133 |
|
$ |
1,581,992 |
|
$ |
1,650,764 |
|
$ |
1,621,398 |
|
$ |
1,675,942 |
|
$ |
54,544 |
|
$ |
166,809 |
|
Interest and fee yield (1) |
|
29.4 |
% |
|
29.7 |
% |
|
29.3 |
% |
|
28.3 |
% |
|
28.4 |
% |
|
0.1 |
% |
|
(1.0 |
)% |
Efficiency ratio (2) |
|
40.0 |
% |
|
38.7 |
% |
|
38.0 |
% |
|
38.7 |
% |
|
39.0 |
% |
|
0.3 |
% |
|
(1.0 |
)% |
Operating expense ratio (3) |
|
13.2 |
% |
|
12.8 |
% |
|
12.4 |
% |
|
12.2 |
% |
|
12.4 |
% |
|
0.2 |
% |
|
(0.8 |
)% |
Delinquency rate (4) |
|
6.6 |
% |
|
7.0 |
% |
|
7.5 |
% |
|
7.2 |
% |
|
7.0 |
% |
|
(0.2 |
)% |
|
0.4 |
% |
Net credit loss rate (5) |
|
11.9 |
% |
|
10.2 |
% |
|
11.0 |
% |
|
12.5 |
% |
|
12.2 |
% |
|
(0.3 |
)% |
|
0.3 |
% |
Book value per share |
$ |
36.43 |
|
$ |
37.94 |
|
$ |
39.05 |
|
$ |
40.25 |
|
$ |
40.51 |
|
$ |
0.26 |
|
$ |
4.08 |
|
(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.
12
|
|
Average Net Finance Receivables |
|
|||||||||||||
|
|
YTD 26 |
|
|
YTD 25 |
|
|
YoY $ |
|
|
YoY % |
|
||||
Large loans |
|
$ |
1,606,667 |
|
|
$ |
1,356,543 |
|
|
$ |
250,124 |
|
|
|
18.4 |
% |
Small loans |
|
|
512,765 |
|
|
|
544,520 |
|
|
|
(31,755 |
) |
|
|
(5.8 |
)% |
Total |
|
$ |
2,119,432 |
|
|
$ |
1,901,063 |
|
|
$ |
218,369 |
|
|
|
11.5 |
% |
|
|
Revenue Yields (1) |
|
|||||||||
|
|
YTD 26 |
|
|
YTD 25 |
|
|
YoY |
|
|||
Large loans |
|
|
26.5 |
% |
|
|
26.4 |
% |
|
|
0.1 |
% |
Small loans |
|
|
34.3 |
% |
|
|
36.2 |
% |
|
|
(1.9 |
)% |
Total interest and fee yield |
|
|
28.4 |
% |
|
|
29.2 |
% |
|
|
(0.8 |
)% |
Total revenue yield |
|
|
31.6 |
% |
|
|
32.7 |
% |
|
|
(1.1 |
)% |
(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 |
|
$ |
32,968 |
|
|
$ |
687 |
|
|
$ |
126 |
|
|
$ |
33,781 |
|
Small loans |
|
|
(5,741 |
) |
|
|
(5,006 |
) |
|
|
292 |
|
|
|
(10,455 |
) |
Product mix |
|
|
4,620 |
|
|
|
(3,324 |
) |
|
|
(1,296 |
) |
|
|
— |
|
Total |
|
$ |
31,847 |
|
|
$ |
(7,643 |
) |
|
$ |
(878 |
) |
|
$ |
23,326 |
|
|
|
Loans Originated (1) |
|
|||||||||||||
|
|
YTD 26 |
|
|
YTD 25 |
|
|
YTD $ |
|
|
YTD % |
|
||||
Large loans |
|
$ |
636,779 |
|
|
$ |
578,282 |
|
|
$ |
58,497 |
|
|
|
10.1 |
% |
Small loans |
|
|
254,809 |
|
|
|
324,167 |
|
|
|
(69,358 |
) |
|
|
(21.4 |
)% |
Total |
|
$ |
891,588 |
|
|
$ |
902,449 |
|
|
$ |
(10,861 |
) |
|
|
(1.2 |
)% |
(1) Represents the principal balance of loan originations, refinancings, and purchases.
|
|
Other Key Metrics |
|
|||||
|
|
YTD 26 |
|
|
YTD 25 |
|
||
Net credit losses |
|
$ |
130,774 |
|
|
$ |
115,279 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.3 |
% |
|
|
12.1 |
% |
Provision for credit losses |
|
$ |
133,874 |
|
|
$ |
118,579 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.6 |
% |
|
|
12.5 |
% |
Percentage of total revenue |
|
|
39.9 |
% |
|
|
38.2 |
% |
General and administrative expenses |
|
$ |
130,108 |
|
|
$ |
128,988 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.3 |
% |
|
|
13.6 |
% |
Percentage of total revenue |
|
|
38.8 |
% |
|
|
41.6 |
% |
13
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 tables provide a reconciliation of GAAP measures to non-GAAP measures.
|
|
2Q 26 |
|
|
Debt |
|
$ |
1,675,942 |
|
|
|
|
378,331 |
|
Less: Intangible assets |
|
|
34,634 |
|
Tangible equity (non-GAAP) |
|
$ |
343,697 |
|
|
|
|
4.4 |
x |
Funded debt-to-tangible equity ratio (non-GAAP) |
|
|
4.9 |
x |
14
2Q 26 Earnings Presentation July 29, 2026 Exhibit 99.2
Legal Disclosures This document contains summarized information concerning Regional Management Corp. (the “Company”) and the Company’s business, operations, financial performance, and trends. No representation is made that the information in this document is complete. For additional financial, statistical, and business information, please see the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission (the “SEC”), as well as the Company’s other reports filed with the SEC from time to time. Such reports are or will be available on the Company’s website (www.regionalmanagement.com) and on the SEC’s website (www.sec.gov). The information and opinions contained in this document are provided as of the date of this presentation and are subject to change without notice. This document has not been approved by any regulatory or supervisory authority. This presentation, the related remarks, and the responses to various questions 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 the Company’s expectations or beliefs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlook 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 the Company. 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 such 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 the Company’s growth strategy, opening new branches as planned, and continuing to expand our lending partnership with Column N.A.; the Company’s convenience check strategy; the Company’s policies and procedures for underwriting, processing, and servicing loans; the Company’s ability to collect on its loan portfolio; the Company’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 the Company’s custom scorecards; changes in the competitive environment in which the Company operates or a decrease in the demand for its products; the geographic concentration of the Company’s loan portfolio; the failure of third-party service providers, including those providing information technology products; changes in economic conditions in the markets the Company 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 the Company’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 the Company's common stock, including volatility in the market price of shares of the Company's common stock; the timing and amount of future cash dividend payments; and anti-takeover provisions in the Company's charter documents and applicable state law. The foregoing factors and others are discussed in greater detail in the Company's filings with the SEC. The Company will not update or revise forward-looking statements to reflect events or circumstances after the date of this presentation 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. This presentation contains certain non-GAAP measures. Please refer to the Appendix accompanying this presentation for a reconciliation of non-GAAP measures to the most comparable GAAP measures. This presentation also contains certain financial terms and abbreviations. Please refer to the Appendix accompanying this presentation for a glossary of terms and abbreviations. 2
2Q 26 Highlights Portfolio Trends $188MM ENR Growth YoY Up 9.6% YoY $44MM Sequential ENR Growth In line with seasonal norms $504MM Origination Volume Down $7MM, or 1.3%, YoY $6.0MM ENR per Branch Up 8.1% YoY $324MM Auto-Secured Portfolio Up $78MM, or 31.8%, YoY Operating Effectiveness 7.0% 30+ DQ % Up 40 bps YoY, inclusive of 20 bps impact from slower portfolio growth 12.2% Net Credit Loss Rate Up 30 bps YoY, inclusive of 20 bps impact from slower portfolio growth 12.4% Operating Expense Ratio 80 bps improvement YoY 80% Fixed-Rate Debt WAC of 4.8% $442MM Unused Capacity Substantial bandwidth to fund growth Returns $0.85 Diluted EPS in 2Q YTD EPS up 17.3% YoY 8.7% ROE / 1.6% ROA in 2Q YTD ROE and ROA up 80 bps and 10 bps YoY, respectively 2.9% Dividend Yield 2Q 26 $0.30 dividend per share $18MM Capital Return and $5MM Increase in Stockholders’ Equity (YTD) $27MM Capital Generation (YTD)¹ Strategic Execution Bank Partnership Program Column N.A. partnership live in Texas; more states beginning this year $65MM+ originated since launch; 28% of current run-rate originations Pre-tax margin projected to improve 200+ bps vs. state-licensed loans Omni-Channel Lending End-to-end digital lending capability launched July 2026 Market Expansion Entered Florida in May 2026 — 20th state Technology, Analytics, & AI New branch origination platform, ML credit model, AI across operations (1) This is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measure. 3
2Q 26 Financial Highlights Net income of $8.2MM and diluted EPS of $0.85 On a year-to-date basis, net income and diluted EPS are up 14.0% and 17.3%, respectively ENR up $187.9MM or 9.6% YoY Total revenue of $168.0MM grew 6.7% YoY Operating expense ratio of 12.4%, YoY improvement of 80 bps 4
Responsible Portfolio Growth 5 Portfolio Growth Trend ($ in millions) Total originations down 1.3% YoY, driven by tightened underwriting in higher-risk business amid a more competitive environment for new customer acquisition Average FICO relatively consistent YoY and over the last several quarters Achieved 9.6% YoY portfolio growth from large loans including high-quality auto-secured loans and new branch openings Auto-secured product portfolio grew $78.1MM to 15.1% of the total portfolio, compared to 12.5% in the prior-year period New branches opened since 2Q 25 have generated $12.3MM, or 6.6%, of total YoY portfolio growth Quarterly Origination Trend ($ in millions)
Increased ENR Per Branch is Driving Efficiency 12 new branches opened since 2Q 25 have generated $12.3MM, or 6.6%, of the $187.9MM YoY portfolio growth Same store receivables grew 9.0% YoY, outpacing 2Q 25 YoY growth of 8.1% 6 Note: ENR per branch in the age cohorts less than 5+ years may fluctuate period-over-period due to differences in average branch maturity within each cohort and the timing of new branch openings.
7 Revenue Up 6.7% on Receivable Growth Total Revenue and Interest & Fee Yields Total Revenue ($ in millions) Revenue grew 6.7% YoY due to $202MM increase in ANR Total revenue yield down 110 bps YoY, primarily due to a mix shift toward larger loans and auto-secured products, which typically carry lower yields and lower loss rates Total revenue yield up 30 bps sequentially, primarily reflecting seasonality and a full quarter of bank partnership fee income, offset by lower insurance income
Recent Credit Trends 30+ & 90+ DQ % ($ in millions) Net Credit Loss Rates 8 2Q 26 delinquency rate of 7.0% decreased sequentially 20 bps and increased 40 bps YoY. The increase primarily reflects slower portfolio growth (20 bps) and the impact of higher-risk segments that we have since tightened. 30+ days past due of $149.4MM compares favorably to the allowance for credit losses of $224.0MM as of 2Q 26 2Q 26 net credit loss rate decreased 30 bps sequentially 2Q 26 net credit loss rate increased 30 bps YoY Inclusive of 20 bps impact of lower YTD ANR growth compared to the prior-year period
Reserves For Credit Losses ACL increased $4.5MM in 2Q 26, driven by portfolio growth; ACL rate remained flat sequentially at 10.4%. The 10 bps YoY increase in the ACL rate reflects updates to macroeconomic assumptions. Allowance for Credit Losses ($ in millions) 9
10 Operating Expense Ratio ($ in millions) Operating expense ratio of 12.4% improved 80 bps YoY, despite investment in technology, digital capabilities, and growth, including 12 new branches opened since 2Q 25 YoY total revenue growth outpaced G&A expense growth by 4.2x Investing for Long Term Growth While Maintaining Expense Discipline
Cost of Funds 11 Interest Expense ($ in millions) Cost of funds increased 20 bps YoY due to increased average debt and the maturation of lower-cost, fixed-rate debt
Total unused capacity was $442MM (subject to borrowing base) as of June 30, 2026 Available liquidity of $128MM as of June 30, 2026 Fixed-rate debt represented 80% of total debt as of June 30, 2026, with WAC of 4.8% Strong Funding Profile Unused Capacity ($ in millions) Fixed vs. Variable Debt Funded Debt Ratios 12 (1) This is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measure.
Excess Capital Consistently Returned to Stockholders 13 (1) This is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measure. (2) Cumulative change since year-end 2020 through the period ended 2Q 26. Capital Performance Since Year-End 2020 (2) $180MM total capital increase $192MM returned to stockholders $372MM (1) capital generated at 12.2% CAGR 20.7% ratio of capital generation to average stockholders’ equity (1) Proven Track Record Proven track record of excess capital generation Returning capital to stockholders Reinvesting to drive sustainable, long-term profitable growth Significant capital generated even during recent periods of high inflation
2026 Earnings Drivers 14 Targeting 6% - 9% YoY net income growth, 10% - 13% EPS growth, and 5% - 7% ENR growth. Guidance reflects deliberate underwriting discipline in certain higher-risk segments and a measured response to a more competitive new customer acquisition environment. 1Q – 2Q 2026 Results 3Q – 4Q 2026 Outlook 3Q 26 4Q 26 Originations & Loan Growth Liquidation of $36MM Soft loan demand and higher payment/payoff activity from tax refunds Growth of $44MM Growth from large loans including high-quality auto-secured loans and new branch openings Growth ~$60MM Growth ~$60MM Loan demand expected to increase in 3Q and remain higher in 4Q driven by holiday demand CECL Provision Reserve Impact Net Credit Losses Strategic Initiatives Release of $1.4MM Seasonal decline in portfolio liquidation drives a reserve release Build of $4.5MM Seasonal increase in portfolio growth drives a reserve build Build ~$6.3MM Build ~$6.3MM Net Credit Loss Rate – 12.5% Elevated in 1Q, consistent with seasonal trends Net Credit Loss Rate – 12.2% Seasonal decrease vs prior quarter Net Credit Loss Rate ~10.7% Net Credit Loss Rate ~11.1% No Material Impact No Material Impact Net Income Benefit ~$2.5MM Net Income Benefit ~$5.0MM Reserve builds aligned with portfolio growth Net credit loss rate expected to reach seasonal low in 3Q and normalize in 4Q Strategic initiatives economics are included in our full year net income guidance Note: Ranges reflect current expectations and are subject to change based on geopolitical and macroeconomic conditions that may affect loan demand and resulting economics. 1Q 26 2Q 26
Appendix 15
YoY increase in digitally sourced origination volume driven by our large loans and auto-secured products Digitally sourced origination volume represented 33.9% of total new borrower volume Large loans (inclusive of auto-secured) represented 84.5% of new borrower digitally sourced loans booked in 2Q 26 Digitally Sourced Origination Volume ($ in millions) Digitally Sourced Originations 16
Consolidated Income Statements 17
Consolidated Balance Sheets 18
Non-GAAP Financial Measures In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), this presentation 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. The Company believes that these non-GAAP measures provide useful information by excluding certain material items that may not be indicative of our operating results. As a result, the Company believes that the non-GAAP measures that it has presented will aid in the evaluation of the operating performance of the business. Total capital and capital return, capital generation, and capital generation as a % of average stockholders' equity are non-GAAP measures to include stock repurchases and dividends returned to stockholders with total capital. Management uses these measures to evaluate the Company's ability to generate capital to return to stockholders, reinvest in strategic initiatives, and evaluate its capacity to absorb losses. The Company also believes that these capital and absorption measures provide useful information to users of the Company’s financial statements in the evaluation of its ability to generate capital to return to stockholders, reinvest in strategic initiatives, and evaluate its capacity to absorb losses. 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. The Company believes that the aforementioned non-GAAP measures will aid users of its financial statements in the evaluation of its operating performance. 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 tables provide reconciliations of GAAP measures to non-GAAP measures. 19
20 (1) Cumulative change since year-end 2020 through the period ended 2Q 26 Non-GAAP Financial Measures (Cont’d)
Non-GAAP Financial Measures (Cont’d) 21
Glossary 22 ACL – Allowance for Credit Losses Allowance for credit loss (ACL) rate – allowance for credit losses as a percentage of ENR ANR – average net finance receivables Average FICO – weighted-average FICO score at origination, weighted by loan volume Bps – basis points Capital generation – the year-to-date change in total capital and capital return from the prior year-end Cost of funds – annualized interest expense as a percentage of average net finance receivables Cumulative capital return – dividend and common stock repurchase activity that has occurred since December 31, 2020 Debt balance – the balance for each respective debt agreement, composed of principal balance and accrued interest Dividend yield – annualized dividends per share divided by the closing share price as of the last day of the quarter Delinquency rate (DQ %) – delinquent loans outstanding as a percentage of ending net finance receivables ENR – ending net finance receivables Funded debt ratio – total debt divided by total assets Interest and fee yield – annualized interest and fee income as a percentage of average net finance receivables ML – Machine learning Net credit loss (NCL) rate – annualized net credit losses as a percentage of average net finance receivables Operating expense ratio – annualized general and administrative expenses as a percentage of average net finance receivables Originations – Represents the principal balance of loan originations, refinancings, and purchases Return on assets (ROA) – annualized net income as a percentage of average total assets Return on equity (ROE) – annualized net income as a percentage of average stockholders’ equity Same store – comparison of branches with a comparable branch base; the comparable branch base includes those branches open for at least 1 year Total capital – stockholders’ equity plus allowance for credit losses Total revenue yield – annualized total revenue as a percentage of average net finance receivables WAC – weighted-average coupon YoY – year-over-year
