[8-K] Regional Management Corp. Reports Material Event
Rhea-AI Filing Summary
Regional Management Corp. reported strong first-quarter 2026 results and declared a cash dividend. Net income was $11.4 million, with diluted EPS of $1.18, up about 69% year-over-year. Record first-quarter revenue reached $167.3 million, driven by 11.3% loan portfolio growth to $2.1 billion.
The operating expense ratio improved to an all-time best 12.2%, down 180 basis points from a year ago, helping profitability despite a higher $64.9 million credit loss provision and a 12.5% net credit loss rate. The board declared a $0.30 per share dividend, payable June 10, 2026.
Positive
- None.
Negative
- None.
Insights
Regional Management posted sharply higher earnings, better efficiency, and continued capital returns.
Regional Management Corp. delivered Q1 2026 net income of $11.4 million and diluted EPS of $1.18, up roughly 69% year-over-year. Record first-quarter revenue of $167.3 million, up 9.4%, was fueled by $2.1 billion of net finance receivables, an 11.3% increase from Q1 2025.
Profitability benefited from an all-time best operating expense ratio of 12.2%, improving 180 basis points year-over-year, even as the provision for credit losses rose to $64.9 million. Credit metrics were broadly stable, with a net credit loss rate of 12.5% and 30+ day delinquencies at 7.2% of receivables in Q1 2026.
Capital management remains active: the company repurchased 207,975 shares at an average $36.06 and declared a $0.30 per-share dividend for payment on June 10, 2026. With $516 million of unused credit capacity and $135.6 million of available liquidity as of March 31, 2026, management also reiterated a full-year framework targeting 20–25% net income growth and 10% receivables growth.
8-K Event Classification
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 April 29, 2026, Regional Management Corp. (the “Company”) issued a press release announcing financial results for the three months ended March 31, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. On April 29, 2026, the Company will host a conference call to discuss financial results for the three months ended March 31, 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 April 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 June 10, 2026 to stockholders of record as of the close of business on May 20, 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 April 29, 2026, announcing financial results for Regional Management Corp. for the three months ended March 31, 2026. |
99.2 |
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Presentation of Regional Management Corp., dated April 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: April 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 First Quarter 2026 Results
- Net income of $11.4 million and diluted earnings per share of $1.18, up 63% and
69% year-over-year, respectively -
- Originations of $388.0 million and 11.3% year-over-year portfolio growth drive record first quarter revenue -
- Annualized operating expense ratio of 12.2%, an all-time best and an improvement of 180 basis points year-over-year -
Greenville, South Carolina – April 29, 2026 – Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the first quarter ended March 31, 2026.
“We delivered a strong start to 2026, with solid financial results, continued year-over-year portfolio growth, and further improvement in operating efficiency,” said Lakhbir S. Lamba, President and Chief Executive Officer of Regional Management Corp. “First quarter diluted EPS increased 69% year-over-year, driven by disciplined execution, stable credit performance, and the scalability of our operating model.”
“We continue to make good progress on our strategic priorities, including expanding our auto-secured portfolio, entering new markets, and advancing our bank partnership with Column,” added Mr. Lamba. “Early results from the partnership are encouraging, and we believe it will enhance our ability to grow the business, broaden our product offerings, and improve risk-adjusted returns over time.”
“Looking ahead, we remain focused on responsible portfolio growth, improving credit performance, and driving operating leverage,” continued Mr. Lamba. “We are confident in our outlook for 2026 and our ability to deliver sustainable, profitable growth and increasing returns for our shareholders.”
1
First Quarter 2026 Highlights
2
Second Quarter 2026 Dividend
The company’s Board of Directors has declared a dividend of $0.30 per common share for the second quarter of 2026. The dividend will be paid on June 10, 2026 to shareholders of record as of the close of business on May 20, 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 March 31, 2026, the company had net finance receivables of $2.1 billion and debt of $1.6 billion. The debt consisted of:
3
As of March 31, 2026, the company’s unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was $516 million, or 66.1%, and the company had available liquidity of $135.6 million, including unrestricted cash on hand and immediate availability to draw down cash from its revolving credit facilities. As of March 31, 2026, the company’s fixed-rate debt as a percentage of total debt was 84%, with a weighted-average coupon of 4.7%.
The company had a funded debt-to-equity ratio of 4.3 to 1.0 and a stockholders’ equity ratio of 18.1%, each as of March 31, 2026. On a non-GAAP basis, the company had a funded debt-to-tangible equity ratio of 4.7 to 1.0, as of March 31, 2026. Please refer to the reconciliations of non-GAAP measures to comparable GAAP measures included at the end of this press release.
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 19 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.
4
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, and opening new branches as planned; 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;
5
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.
Contact
Investor Relations
Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
6
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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1Q 26 |
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1Q 25 |
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$ |
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% |
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Revenue |
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Interest and fee income |
$ |
150,296 |
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$ |
136,553 |
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$ |
13,743 |
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10.1 |
% |
Insurance income, net |
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11,810 |
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11,297 |
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513 |
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4.5 |
% |
Other income |
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5,184 |
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5,117 |
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67 |
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1.3 |
% |
Total revenue |
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167,290 |
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152,967 |
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14,323 |
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9.4 |
% |
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Expenses |
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Provision for credit losses |
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64,868 |
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57,992 |
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(6,876 |
) |
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(11.9 |
)% |
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Personnel |
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39,342 |
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41,142 |
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1,800 |
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4.4 |
% |
Occupancy |
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7,479 |
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6,906 |
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(573 |
) |
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(8.3 |
)% |
Marketing |
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4,181 |
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5,406 |
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1,225 |
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22.7 |
% |
Other |
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13,662 |
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12,589 |
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(1,073 |
) |
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(8.5 |
)% |
Total general and administrative |
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64,664 |
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66,043 |
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1,379 |
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2.1 |
% |
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Interest expense |
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22,923 |
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19,771 |
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(3,152 |
) |
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(15.9 |
)% |
Income before income taxes |
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14,835 |
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9,161 |
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5,674 |
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61.9 |
% |
Income taxes |
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3,434 |
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2,154 |
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(1,280 |
) |
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(59.4 |
)% |
Net income |
$ |
11,401 |
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$ |
7,007 |
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$ |
4,394 |
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62.7 |
% |
Net income per common share: |
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Basic |
$ |
1.24 |
|
$ |
0.73 |
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$ |
0.51 |
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69.9 |
% |
Diluted |
$ |
1.18 |
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$ |
0.70 |
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$ |
0.48 |
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68.6 |
% |
Weighted-average common shares outstanding: |
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Basic |
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9,163 |
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9,610 |
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|
447 |
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4.7 |
% |
Diluted |
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9,662 |
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|
10,025 |
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|
363 |
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|
3.6 |
% |
Return on average assets (annualized) |
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2.2 |
% |
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1.5 |
% |
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Return on average equity (annualized) |
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12.2 |
% |
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7.9 |
% |
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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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||||||
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1Q 26 |
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1Q 25 |
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$ |
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% |
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Assets |
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Cash |
$ |
4,859 |
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$ |
4,158 |
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$ |
701 |
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16.9 |
% |
Net finance receivables |
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2,104,001 |
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|
1,890,351 |
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|
213,650 |
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|
11.3 |
% |
Unearned insurance premiums |
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(51,044 |
) |
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(47,107 |
) |
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(3,937 |
) |
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(8.4 |
)% |
Allowance for credit losses |
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(219,500 |
) |
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(199,100 |
) |
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(20,400 |
) |
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(10.2 |
)% |
Net finance receivables, less unearned insurance premiums and allowance for credit losses |
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1,833,457 |
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1,644,144 |
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|
189,313 |
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|
11.5 |
% |
Restricted cash |
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98,364 |
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|
122,312 |
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(23,948 |
) |
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(19.6 |
)% |
Lease assets |
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44,174 |
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40,699 |
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|
3,475 |
|
|
8.5 |
% |
Intangible assets |
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33,172 |
|
|
26,750 |
|
|
6,422 |
|
|
24.0 |
% |
Restricted available-for-sale investments |
|
24,390 |
|
|
21,687 |
|
|
2,703 |
|
|
12.5 |
% |
Property and equipment |
|
12,980 |
|
|
13,635 |
|
|
(655 |
) |
|
(4.8 |
)% |
Deferred tax assets, net |
|
— |
|
|
9,421 |
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(9,421 |
) |
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(100.0 |
)% |
Other assets |
|
21,354 |
|
|
17,877 |
|
|
3,477 |
|
|
19.4 |
% |
Total assets |
$ |
2,072,750 |
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$ |
1,900,683 |
|
$ |
172,067 |
|
|
9.1 |
% |
Liabilities and Stockholders’ Equity |
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Liabilities: |
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Debt |
$ |
1,621,398 |
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$ |
1,477,860 |
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$ |
143,538 |
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|
9.7 |
% |
Unamortized debt issuance costs |
|
(7,048 |
) |
|
(7,924 |
) |
|
876 |
|
|
11.1 |
% |
Net debt |
|
1,614,350 |
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|
1,469,936 |
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|
144,414 |
|
|
9.8 |
% |
Lease liabilities |
|
46,324 |
|
|
42,788 |
|
|
3,536 |
|
|
8.3 |
% |
Deferred tax liabilities, net |
|
3,883 |
|
|
— |
|
|
3,883 |
|
|
100.0 |
% |
Accounts payable and accrued expenses |
|
32,344 |
|
|
30,083 |
|
|
2,261 |
|
|
7.5 |
% |
Total liabilities |
|
1,696,901 |
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|
1,542,807 |
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|
154,094 |
|
|
10.0 |
% |
Stockholders’ equity: |
|
|
|
|
|
|
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||||
Preferred stock ($0.10 par value, 100,000 shares authorized, none issued or outstanding) |
|
— |
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— |
|
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— |
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|
— |
|
Common stock ($0.10 par value, 1,000,000 shares authorized, 15,160 shares issued and 9,338 shares outstanding at March 31, 2026 and 15,187 shares issued and 10,088 shares outstanding at March 31, 2025) |
|
1,516 |
|
|
1,519 |
|
|
(3 |
) |
|
(0.2 |
)% |
Additional paid-in capital |
|
140,555 |
|
|
134,206 |
|
|
6,349 |
|
|
4.7 |
% |
Retained earnings |
|
419,197 |
|
|
382,532 |
|
|
36,665 |
|
|
9.6 |
% |
Accumulated other comprehensive loss |
|
(31 |
) |
|
(171 |
) |
|
140 |
|
|
81.9 |
% |
Treasury stock (5,822 shares at March 31, 2026 and 5,098 shares at |
|
(185,388 |
) |
|
(160,210 |
) |
|
(25,178 |
) |
|
(15.7 |
)% |
Total stockholders’ equity |
|
375,849 |
|
|
357,876 |
|
|
17,973 |
|
|
5.0 |
% |
Total liabilities and stockholders’ equity |
$ |
2,072,750 |
|
$ |
1,900,683 |
|
$ |
172,067 |
|
|
9.1 |
% |
8
Regional Management Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
(dollars in thousands, except per share amounts)
|
|
Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
1Q 26 |
|
|
4Q 25 |
|
|
QoQ $ |
|
|
QoQ % |
|
|
1Q 25 |
|
|
YoY $ |
|
|
YoY % |
|
|||||||
Large loans |
|
$ |
1,591,528 |
|
|
$ |
1,593,171 |
|
|
$ |
(1,643 |
) |
|
|
(0.1 |
)% |
|
$ |
1,345,825 |
|
|
$ |
245,703 |
|
|
|
18.3 |
% |
Small loans |
|
|
512,473 |
|
|
|
547,028 |
|
|
|
(34,555 |
) |
|
|
(6.3 |
)% |
|
|
544,526 |
|
|
|
(32,053 |
) |
|
|
(5.9 |
)% |
Total |
|
$ |
2,104,001 |
|
|
$ |
2,140,199 |
|
|
$ |
(36,198 |
) |
|
|
(1.7 |
)% |
|
$ |
1,890,351 |
|
|
$ |
213,650 |
|
|
|
11.3 |
% |
Number of branches |
|
|
355 |
|
|
|
353 |
|
|
|
2 |
|
|
|
0.6 |
% |
|
|
353 |
|
|
|
2 |
|
|
|
0.6 |
% |
Net finance receivables per branch |
|
$ |
5,927 |
|
|
$ |
6,063 |
|
|
$ |
(136 |
) |
|
|
(2.2 |
)% |
|
$ |
5,355 |
|
|
$ |
572 |
|
|
|
10.7 |
% |
|
|
Average Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
1Q 26 |
|
|
4Q 25 |
|
|
QoQ $ |
|
|
QoQ % |
|
|
1Q 25 |
|
|
YoY $ |
|
|
YoY % |
|
|||||||
Large loans |
|
$ |
1,592,493 |
|
|
$ |
1,552,956 |
|
|
$ |
39,537 |
|
|
|
2.5 |
% |
|
$ |
1,340,122 |
|
|
$ |
252,371 |
|
|
|
18.8 |
% |
Small loans |
|
|
531,037 |
|
|
|
535,316 |
|
|
|
(4,279 |
) |
|
|
(0.8 |
)% |
|
|
548,983 |
|
|
|
(17,946 |
) |
|
|
(3.3 |
)% |
Total |
|
$ |
2,123,530 |
|
|
$ |
2,088,272 |
|
|
$ |
35,258 |
|
|
|
1.7 |
% |
|
$ |
1,889,105 |
|
|
$ |
234,425 |
|
|
|
12.4 |
% |
|
|
Revenue Yields (1) |
|
|||||||||||||||||
|
|
1Q 26 |
|
|
4Q 25 |
|
|
QoQ |
|
|
1Q 25 |
|
|
YoY |
|
|||||
Large loans |
|
|
26.3 |
% |
|
|
27.1 |
% |
|
|
(0.8 |
)% |
|
|
26.1 |
% |
|
|
0.2 |
% |
Small loans |
|
|
34.3 |
% |
|
|
35.8 |
% |
|
|
(1.5 |
)% |
|
|
35.9 |
% |
|
|
(1.6 |
)% |
Total interest and fee yield |
|
|
28.3 |
% |
|
|
29.3 |
% |
|
|
(1.0 |
)% |
|
|
28.9 |
% |
|
|
(0.6 |
)% |
Total revenue yield |
|
|
31.5 |
% |
|
|
32.5 |
% |
|
|
(1.0 |
)% |
|
|
32.4 |
% |
|
|
(0.9 |
)% |
(1) Annualized as a percentage of average net finance receivables.
|
|
Components of Increase in Interest and Fee Income |
|
|||||||||||||
|
|
1Q 26 Compared to 1Q 25 |
|
|||||||||||||
|
|
Increase (Decrease) |
|
|||||||||||||
|
|
Volume |
|
|
Rate |
|
|
Volume & Rate |
|
|
Total |
|
||||
Large loans |
|
$ |
16,448 |
|
|
$ |
782 |
|
|
$ |
148 |
|
|
$ |
17,378 |
|
Small loans |
|
|
(1,609 |
) |
|
|
(2,095 |
) |
|
|
69 |
|
|
|
(3,635 |
) |
Product mix |
|
|
2,106 |
|
|
|
(1,536 |
) |
|
|
(570 |
) |
|
|
— |
|
Total |
|
$ |
16,945 |
|
|
$ |
(2,849 |
) |
|
$ |
(353 |
) |
|
$ |
13,743 |
|
9
|
|
Loans Originated (1) |
|
|||||||||||||||||||||||||
|
|
1Q 26 |
|
|
4Q 25 |
|
|
QoQ $ |
|
|
QoQ % |
|
|
1Q 25 |
|
|
YoY $ |
|
|
YoY % |
|
|||||||
Large loans |
|
$ |
265,460 |
|
|
$ |
364,194 |
|
|
$ |
(98,734 |
) |
|
|
(27.1 |
)% |
|
$ |
241,809 |
|
|
$ |
23,651 |
|
|
|
9.8 |
% |
Small loans |
|
|
122,493 |
|
|
|
173,122 |
|
|
|
(50,629 |
) |
|
|
(29.2 |
)% |
|
|
150,311 |
|
|
|
(27,818 |
) |
|
|
(18.5 |
)% |
Total |
|
$ |
387,953 |
|
|
$ |
537,316 |
|
|
$ |
(149,363 |
) |
|
|
(27.8 |
)% |
|
$ |
392,120 |
|
|
$ |
(4,167 |
) |
|
|
(1.1 |
)% |
(1) Represents the principal balance of loan originations, refinancings, and purchases.
|
|
Other Key Metrics |
|
|||||||||
|
|
1Q 26 |
|
|
4Q 25 |
|
|
1Q 25 |
|
|||
Net credit losses |
|
$ |
66,268 |
|
|
$ |
57,479 |
|
|
$ |
58,392 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.5 |
% |
|
|
11.0 |
% |
|
|
12.4 |
% |
Provision for credit losses |
|
$ |
64,868 |
|
|
$ |
66,379 |
|
|
$ |
57,992 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.2 |
% |
|
|
12.7 |
% |
|
|
12.3 |
% |
Percentage of total revenue |
|
|
38.8 |
% |
|
|
39.1 |
% |
|
|
37.9 |
% |
General and administrative expenses |
|
$ |
64,664 |
|
|
$ |
64,519 |
|
|
$ |
66,043 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.2 |
% |
|
|
12.4 |
% |
|
|
14.0 |
% |
Percentage of total revenue |
|
|
38.7 |
% |
|
|
38.0 |
% |
|
|
43.2 |
% |
Same store results (1): |
|
|
|
|
|
|
|
|
|
|||
Net finance receivables at period-end |
|
$ |
2,087,752 |
|
|
$ |
2,087,903 |
|
|
$ |
1,858,140 |
|
Net finance receivable growth rate |
|
|
10.7 |
% |
|
|
10.9 |
% |
|
|
6.5 |
% |
Number of branches in calculation |
|
|
345 |
|
|
|
336 |
|
|
|
336 |
|
(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 |
|
|||||||||||||||||||||
|
|
1Q 26 |
|
|
4Q 25 |
|
|
1Q 25 |
|
|||||||||||||||
Allowance for credit losses |
|
$ |
219,500 |
|
|
|
10.4 |
% |
|
$ |
220,900 |
|
|
|
10.3 |
% |
|
$ |
199,100 |
|
|
|
10.5 |
% |
|
|
|
1,801,192 |
|
|
|
85.6 |
% |
|
|
1,809,107 |
|
|
|
84.5 |
% |
|
|
1,624,072 |
|
|
|
85.9 |
% |
1 to 29 days past due |
|
|
151,875 |
|
|
|
7.2 |
% |
|
|
169,858 |
|
|
|
8.0 |
% |
|
|
132,302 |
|
|
|
7.0 |
% |
Delinquent accounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
30 to 59 days |
|
|
35,235 |
|
|
|
1.7 |
% |
|
|
41,235 |
|
|
|
1.9 |
% |
|
|
32,790 |
|
|
|
1.8 |
% |
60 to 89 days |
|
|
32,251 |
|
|
|
1.5 |
% |
|
|
37,158 |
|
|
|
1.7 |
% |
|
|
28,778 |
|
|
|
1.5 |
% |
90 to 119 days |
|
|
28,331 |
|
|
|
1.4 |
% |
|
|
30,818 |
|
|
|
1.5 |
% |
|
|
24,204 |
|
|
|
1.3 |
% |
120 to 149 days |
|
|
27,198 |
|
|
|
1.3 |
% |
|
|
27,765 |
|
|
|
1.3 |
% |
|
|
22,866 |
|
|
|
1.2 |
% |
150 to 179 days |
|
|
27,919 |
|
|
|
1.3 |
% |
|
|
24,258 |
|
|
|
1.1 |
% |
|
|
25,339 |
|
|
|
1.3 |
% |
Total delinquency |
|
$ |
150,934 |
|
|
|
7.2 |
% |
|
$ |
161,234 |
|
|
|
7.5 |
% |
|
$ |
133,977 |
|
|
|
7.1 |
% |
Total net finance receivables |
|
$ |
2,104,001 |
|
|
|
100.0 |
% |
|
$ |
2,140,199 |
|
|
|
100.0 |
% |
|
$ |
1,890,351 |
|
|
|
100.0 |
% |
1 day and over past due |
|
$ |
302,809 |
|
|
|
14.4 |
% |
|
$ |
331,092 |
|
|
|
15.5 |
% |
|
$ |
266,279 |
|
|
|
14.1 |
% |
|
|
Contractual Delinquency by Product |
|
|||||||||||||||||||||
|
|
1Q 26 |
|
|
4Q 25 |
|
|
1Q 25 |
|
|||||||||||||||
Large loans |
|
$ |
95,192 |
|
|
|
6.0 |
% |
|
$ |
99,956 |
|
|
|
6.3 |
% |
|
$ |
79,401 |
|
|
|
5.9 |
% |
Small loans |
|
|
55,742 |
|
|
|
10.9 |
% |
|
|
61,278 |
|
|
|
11.2 |
% |
|
|
54,576 |
|
|
|
10.0 |
% |
Total |
|
$ |
150,934 |
|
|
|
7.2 |
% |
|
$ |
161,234 |
|
|
|
7.5 |
% |
|
$ |
133,977 |
|
|
|
7.1 |
% |
10
|
Income Statement Quarterly Trend |
|
|||||||||||||||||||
|
1Q 25 |
|
2Q 25 |
|
3Q 25 |
|
4Q 25 |
|
1Q 26 |
|
QoQ $ |
|
YoY $ |
|
|||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest and fee income |
$ |
136,553 |
|
$ |
140,695 |
|
$ |
148,672 |
|
$ |
153,029 |
|
$ |
150,296 |
|
$ |
(2,733 |
) |
$ |
13,743 |
|
Insurance income, net |
|
11,297 |
|
|
11,499 |
|
|
11,391 |
|
|
11,386 |
|
|
11,810 |
|
|
424 |
|
|
513 |
|
Other income |
|
5,117 |
|
|
5,248 |
|
|
5,424 |
|
|
5,287 |
|
|
5,184 |
|
|
(103 |
) |
|
67 |
|
Total revenue |
|
152,967 |
|
|
157,442 |
|
|
165,487 |
|
|
169,702 |
|
|
167,290 |
|
|
(2,412 |
) |
|
14,323 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Provision for credit losses |
|
57,992 |
|
|
60,587 |
|
|
60,474 |
|
|
66,379 |
|
|
64,868 |
|
|
1,511 |
|
|
(6,876 |
) |
|
|
41,142 |
|
|
38,584 |
|
|
39,517 |
|
|
40,394 |
|
|
39,342 |
|
|
1,052 |
|
|
1,800 |
|
Occupancy |
|
6,906 |
|
|
6,911 |
|
|
7,160 |
|
|
7,227 |
|
|
7,479 |
|
|
(252 |
) |
|
(573 |
) |
Marketing |
|
5,406 |
|
|
5,059 |
|
|
4,212 |
|
|
3,874 |
|
|
4,181 |
|
|
(307 |
) |
|
1,225 |
|
Other |
|
12,589 |
|
|
12,391 |
|
|
13,179 |
|
|
13,024 |
|
|
13,662 |
|
|
(638 |
) |
|
(1,073 |
) |
Total general and administrative |
|
66,043 |
|
|
62,945 |
|
|
64,068 |
|
|
64,519 |
|
|
64,664 |
|
|
(145 |
) |
|
1,379 |
|
|
|
19,771 |
|
|
20,426 |
|
|
21,971 |
|
|
22,646 |
|
|
22,923 |
|
|
(277 |
) |
|
(3,152 |
) |
Income before income taxes |
|
9,161 |
|
|
13,484 |
|
|
18,974 |
|
|
16,158 |
|
|
14,835 |
|
|
(1,323 |
) |
|
5,674 |
|
Income taxes |
|
2,154 |
|
|
3,344 |
|
|
4,618 |
|
|
3,249 |
|
|
3,434 |
|
|
(185 |
) |
|
(1,280 |
) |
Net income |
$ |
7,007 |
|
$ |
10,140 |
|
$ |
14,356 |
|
$ |
12,909 |
|
$ |
11,401 |
|
$ |
(1,508 |
) |
$ |
4,394 |
|
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
0.73 |
|
$ |
1.07 |
|
$ |
1.53 |
|
$ |
1.40 |
|
$ |
1.24 |
|
$ |
(0.16 |
) |
$ |
0.51 |
|
Diluted |
$ |
0.70 |
|
$ |
1.03 |
|
$ |
1.42 |
|
$ |
1.30 |
|
$ |
1.18 |
|
$ |
(0.12 |
) |
$ |
0.48 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
9,610 |
|
|
9,504 |
|
|
9,370 |
|
|
9,233 |
|
|
9,163 |
|
|
70 |
|
|
447 |
|
Diluted |
|
10,025 |
|
|
9,843 |
|
|
10,133 |
|
|
9,941 |
|
|
9,662 |
|
|
279 |
|
|
363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Balance Sheet & Other Key Metrics Quarterly Trends |
|
|||||||||||||||||||
|
1Q 25 |
|
2Q 25 |
|
3Q 25 |
|
4Q 25 |
|
1Q 26 |
|
QoQ $ |
|
YoY $ |
|
|||||||
Total assets |
$ |
1,900,683 |
|
$ |
1,967,131 |
|
$ |
2,028,266 |
|
$ |
2,103,930 |
|
$ |
2,072,750 |
|
$ |
(31,180 |
) |
$ |
172,067 |
|
Net finance receivables |
$ |
1,890,351 |
|
$ |
1,960,364 |
|
$ |
2,053,017 |
|
$ |
2,140,199 |
|
$ |
2,104,001 |
|
$ |
(36,198 |
) |
$ |
213,650 |
|
Allowance for credit losses |
$ |
199,100 |
|
$ |
202,800 |
|
$ |
212,000 |
|
$ |
220,900 |
|
$ |
219,500 |
|
$ |
(1,400 |
) |
$ |
20,400 |
|
Debt |
$ |
1,477,860 |
|
$ |
1,509,133 |
|
$ |
1,581,992 |
|
$ |
1,650,764 |
|
$ |
1,621,398 |
|
$ |
(29,366 |
) |
$ |
143,538 |
|
Interest and fee yield (1) |
|
28.9 |
% |
|
29.4 |
% |
|
29.7 |
% |
|
29.3 |
% |
|
28.3 |
% |
|
(1.0 |
)% |
|
(0.6 |
)% |
Efficiency ratio (2) |
|
43.2 |
% |
|
40.0 |
% |
|
38.7 |
% |
|
38.0 |
% |
|
38.7 |
% |
|
0.7 |
% |
|
(4.5 |
)% |
Operating expense ratio (3) |
|
14.0 |
% |
|
13.2 |
% |
|
12.8 |
% |
|
12.4 |
% |
|
12.2 |
% |
|
(0.2 |
)% |
|
(1.8 |
)% |
Delinquency rate (4) |
|
7.1 |
% |
|
6.6 |
% |
|
7.0 |
% |
|
7.5 |
% |
|
7.2 |
% |
|
(0.3 |
)% |
|
0.1 |
% |
Net credit loss rate (5) |
|
12.4 |
% |
|
11.9 |
% |
|
10.2 |
% |
|
11.0 |
% |
|
12.5 |
% |
|
1.5 |
% |
|
0.1 |
% |
Book value per share |
$ |
35.48 |
|
$ |
36.43 |
|
$ |
37.94 |
|
$ |
39.05 |
|
$ |
40.25 |
|
$ |
1.20 |
|
$ |
4.77 |
|
(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.
11
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.
|
|
1Q 26 |
|
|
Debt |
|
$ |
1,621,398 |
|
|
|
|
375,849 |
|
Less: Intangible assets |
|
|
33,172 |
|
Tangible equity (non-GAAP) |
|
$ |
342,677 |
|
|
|
|
4.3 |
x |
Funded debt-to-tangible equity ratio (non-GAAP) |
|
|
4.7 |
x |
12
1Q 26 Earnings Presentation April 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, and opening new branches as planned; 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
1Q 26 Highlights $214MM ENR Growth YoY Up 11.3% YoY $36MM Sequential ENR Liquidation In line with seasonal norms $388MM Origination Volume Down $4MM, or 1.1% YoY $5.9MM ENR per Branch Up 10.7% YoY $301MM Auto-Secured Portfolio Up $83MM, or 37.7% YoY 3 Portfolio Trends Operating Effectiveness Returns 7.2% 30+ DQ % Up 10 bps YoY 12.5% Net Credit Loss Rate Up 10 bps YoY 12.2% Operating Expense Ratio Historic best, 180 bps improvement YoY 84% Fixed-Rate Debt WAC of 4.7% $516MM Unused Capacity Substantial bandwidth to fund growth $1.18 Diluted Earnings Per Share Up 68.6% YoY 12.2% ROE / 2.2% ROA Up 430 bps YoY / Up 70 bps YoY 3.7% Dividend Yield 1Q 26 $0.30 dividend per share $11MM Capital Return and $3MM Increase in Stockholders’ Equity $12MM Capital Generation (1) (1) This is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measure.
1Q 26 Financial Highlights Significant improvement across key financial metrics: Net income up $4.4MM or 62.7% YoY ROE and ROA up 430 bps and 70 bps YoY, respectively Record first quarter total revenue of $167.3MM, growing 9.4% YoY All-time best operating expense ratio of 12.2%, YoY improvement of 180 bps 4
Responsible Portfolio Growth 5 Portfolio Growth Trend ($ in millions) Total originations down 1.1% from 1Q 25 due to a stronger tax refund season and disciplined underwriting Average FICO relatively consistent YoY and over the last several quarters Achieved 11.3% YoY portfolio growth from large loans including high-quality auto-secured loans and new branch openings Auto-secured product portfolio grew $82.6MM to 14.3% of the total portfolio, compared to 11.6% in the prior-year period New branches opened since 1Q 25 have generated $16.2MM, or 7.6%, of total YoY portfolio growth Quarterly Origination Trend ($ in millions)
Increased ENR Per Branch is Driving Efficiency 10 new branches opened since 1Q 25 have generated $16.2MM, or 7.6%, of the $213.7MM YoY portfolio growth Same store receivables grew 10.7% YoY, outpacing 1Q 25 YoY growth of 6.5% 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.
Record total revenue for a first quarter of $167.3MM Revenue grew 9.4% YoY due to higher ANR of $234MM Total revenue yield down 90 bps YoY primarily due to mix shift to larger loans 7 Revenue Up 9.4% on Receivable Growth Total Revenue and Interest & Fee Yields Total Revenue ($ in millions) (1) The favorable impact from 3Q 24 hurricane activity on total revenue yield
Recent Credit Trends 30+ & 90+ DQ% ($ in millions) Net Credit Loss Rates 8 (1) The favorable impact on the net credit loss rate in 4Q 24 from 3Q 24 hurricane activity, and the unfavorable impact to 2Q 25 1Q 26 delinquency of 7.2% and net credit loss rate of 12.5% both increased 10 bps YoY Both inclusive of 10 bps impact from higher liquidation in 1Q 26 compared to 1Q 25 30+ days past due of $150.9MM compares favorably to the allowance for credit losses of $219.5MM as of 1Q 26
Reserves For Credit Losses ACL declined $1.4MM in 1Q 26, driven by portfolio liquidation, partially offset by a 10 bps sequential increase in the ACL rate to 10.4%. The increase in the ACL rate reflects updates to macroeconomic assumptions. The Company is required to reserve for expected lifetime credit losses at the origination of each loan, while the revenue benefits are recognized over the life of the loan. Allowance for Credit Losses ($ in millions) 9
Improving Operating Leverage While Investing in Our Business 10 Operating Expense Ratio ($ in millions) All-time best operating expense ratio of 12.2% improved 180 bps YoY, despite investment in technology, digital capabilities, and growth, including 10 new branches opened since 1Q 25 Achieved strong YoY revenue growth of 9.4%, or $14.3MM, while G&A expenses improved $1.4MM
Cost of funds increased 10 bps YoY due to increased average debt and the maturation of lower-cost, fixed-rate debt Cost of Funds 11 Interest Expense ($ in millions)
Total unused capacity was $516MM (subject to borrowing base) as of March 31, 2026 Available liquidity of $136MM as of March 31, 2026 Fixed-rate debt represented 84% of total debt as of March 31, 2026, with WAC of 4.7% Strong Funding Profile Unused Capacity ($ 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 1Q 26. Capital Performance Since Year-End 2020 (2) $173MM total capital increase $184MM returned to stockholders $358MM (1) capital generated at 12.4% CAGR 21.0% 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 Target net income growth of 20-25% and ENR growth of 10% year over year, consistent with previous guidance 1Q 26 Results 2Q – 4Q 2026 Outlook 2Q 26 3Q 26 4Q 26 Originations & Loan Growth CECL Provision Reserve Impact Net Credit Losses Strategic Initiatives Liquidation of $36MM Soft loan demand and higher payment/payoff activity from tax refunds Growth $60 - $75MM Growth $75 - $90MM Growth $70 - $85MM Release of $1.4MM Seasonal decline in portfolio liquidation drives a reserve release Build $6.3 - $7.8MM Build $7.8 - $9.4MM Build $7.3 - $8.9MM Net Credit Loss Rate – 12.5% Elevated in 1Q, consistent with seasonal trends Net Credit Loss Rate ~12.0% Net Credit Loss Rate ~10.0% Net Credit Loss Rate ~10.5% No Material Impact No Material Impact Net Income Benefit $1.5 - $2.0MM Net Income Benefit $3.5 - $4.0MM Loan demand rebounds in 2Q, strengthens in 3Q, and remains strong in 4Q driven by holiday demand Reserve builds aligned with portfolio growth Credit performance improves in 2Q, reaches seasonal low in 3Q, normalizes in 4Q Strategic initiatives economics are included in our full year net income guidance Note: Ranges reflect current expectations and are subject to change based on geopolitical and macroeconomic conditions that may affect loan demand and resulting economics.
Appendix 15
Digitally sourced origination volume increase YoY driven by geographic expansion and our auto-secured product Digitally sourced origination volume represented 34.6% of total new borrower volume Large loans (inclusive of auto-secured) represented 81.8% of new borrower digitally sourced loans booked in 1Q 26 Digitally Sourced Origination Volume ($ 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 1Q 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 rate (ACL rate) – allowance for credit losses as a percentage of ending net finance receivables ANR – average net finance receivables Average FICO – loan-volume-weighted average FICO score at time of origination 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, 2019 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 Net credit loss 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
