Regional Management Q3 net income rises to $15.1M
RM's net credit loss rate was 10.9%, down 130 basis points sequentially but up 70 basis points year over year.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Regional Management Corp. (RM) reported third-quarter 2026 net income of $15.1 million and diluted earnings per share of $1.61, up 5.3% and 13.4% year over year; total revenue was $178.8 million, up 8.0%. Net finance receivables were $2.2 billion as of September 30, 2026, up 7.6% year over year, while originations were $530.3 million, up 1.5%.
The net credit loss rate was 10.9%, down 130 basis points sequentially but up 70 basis points year over year; 30+ day delinquencies were 7.5%, up 50 basis points year over year. Unused revolving capacity was $324 million, subject to the borrowing base, and available liquidity was $104.0 million as of September 30, 2026. For 2026, RM is targeting year-over-year net income growth of 6%–9%, earnings-per-share growth of 10%–13%, and ending net finance receivables growth of 5%–7%.
The Board declared a quarterly cash dividend of $0.30 per share, payable December 16, 2026, to holders of record at close of business November 18, 2026. Manish Parmar’s employment as Executive Vice President and Chief Credit Risk Officer ended without cause effective October 28, 2026; he is entitled to severance-plan benefits subject to compliance with restrictive covenants. Elizabeth Canini was appointed Chief Credit Risk Officer effective November 2, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue rose 8.0% to $178.8 million year over year.
- Moderate pointNet income rose 5.3%; diluted EPS rose 13.4% year over year.
Negative
- Moderate pointNet credit loss rate: 10.9%, up 70 basis points year over year.
Filing Explained
This adds a completed buyback to the quarter’s disclosed capital actions: Regional Management repurchased 265,645 shares at a weighted-average
8-K Event Classification
Key Figures
Key Terms
Net credit loss rate financial
Allowance for credit losses financial
Bank partnership fee income financial
Funded debt-to-tangible equity ratio financial
Earnings Snapshot
For 2026, RM is targeting year-over-year net income growth of 6%–9%, earnings-per-share growth of 10%–13%, and ending net finance receivables growth of 5%–7%. The ranges reflect current expectations and are subject to change based on geopolitical and macroeconomic conditions that may affect loan demand and resulting economics.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did RM perform in the third quarter of 2026?
What were RM's Q3 2026 credit loss and delinquency rates?
When will RM pay its quarterly dividend?
How far has RM expanded its Column bank partnership?
AI-generated analysis. How Rhea-AI works. Not financial advice.
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 October 28, 2026, Regional Management Corp. (the “Company”) issued a press release announcing financial results for the three and nine months ended September 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. On October 28, 2026, the Company will host a conference call to discuss financial results for the three and nine months ended September 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 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On October 28, 2026, the employment of Manish Parmar, Executive Vice President and Chief Credit Risk Officer of the Company, was terminated without cause, effective immediately. The termination of Mr. Parmar’s employment will be treated as a “Qualifying Termination” under the Regional Management Corp. Executive Severance and Change in Control Plan, as amended and restated effective October 30, 2025 (the “Severance Plan”), previously filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 5, 2025. As a result, Mr. Parmar will be entitled to receive benefits under the Severance Plan, subject to his compliance with the restrictive covenants contained in the Severance Plan.
On October 28, 2026, the Company announced that its Board of Directors (the “Board”) had appointed Elizabeth Canini as Chief Credit Risk Officer of the Company, effective as of November 2, 2026, and issued a press release announcing the Chief Credit Risk Officer transition. The press release is attached hereto as Exhibit 99.3.
Item 8.01. Other Events.
On October 28, 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 December 16, 2026 to stockholders of record as of the close of business on November 18, 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 October 28, 2026, announcing financial results for Regional Management Corp. for the three and nine months ended September 30, 2026. |
99.2 |
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Presentation of Regional Management Corp., dated October 28, 2026. |
99.3 |
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Press Release issued by Regional Management Corp. on October 28, 2026, announcing the appointment of Elizabeth Canini as Chief Credit Risk Officer. |
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: October 28, 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 Third Quarter 2026 Results
- Net income of $15.1 million and diluted earnings per share of $1.61, up 5.3% and 13.4% year-over-year, respectively -
- Year-to-date net income and diluted earnings per share up 10.0% and 15.2% year-
over-year, respectively -
- Record total revenue of $178.8 million, up 8.0% year-over-year, on portfolio growth and bank partnership fee income -
- Annualized operating expense ratio improved 20 basis points year-over-year -
Greenville, South Carolina – October 28, 2026 – Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the third quarter ended September 30, 2026.
“Our third quarter results reflect steady execution against the priorities we outlined in July,” said Lakhbir S. Lamba, President and Chief Executive Officer of Regional Management Corp. “We grew the portfolio in line with our expectations, generated record revenue supported by fee income from our bank partnership, and earned net income of $15.1 million, or $1.61 per diluted share, while maintaining disciplined expense management.”
“Our net credit loss rate for the third quarter of 2026 was 10.9%, a seasonal improvement of 130 basis points sequentially and up 70 basis points from the prior-year period,” continued Mr. Lamba. “We have identified the drivers of the year-over-year increase and have actions in place against each. We tightened underwriting in the segments that underperformed and began implementing enhanced fraud controls across all channels. In the fourth quarter, we will also complete the rollout of our new proprietary origination scorecard, and Liz Canini will join us in early November as Chief Credit Risk Officer to lead our credit organization.”
“Our bank partnership is becoming central to how we compete,” added Mr. Lamba. “Since we last reported, we have extended the program to three additional states, and we continue to expand it across our footprint. The partnership allows us to further refine our pricing strategy to support growth, credit performance, and attractive risk-adjusted returns over time. Together with disciplined underwriting and our investments in talent, technology, and data, it positions Regional for more consistent growth and higher returns, including strong growth on our bottom line in 2027.”
1
Third Quarter 2026 Highlights
2
3
Strategic Highlights
During the third quarter, the company continued to expand its bank partnership program with Column N.A., a nationally chartered bank, under which Column has originated more than $160 million in loans since the program’s launch in March 2026. Following full implementation of the program for loans made through the company’s branches in Texas, its largest state, the company has extended the program to North Carolina, Louisiana, and Missouri, and it continues to expect substantially all of its branch network to operate under the program by the end of 2027. In addition to generating fee income for the company, the program enables more risk-aligned loan pricing, which the company believes will reduce adverse selection over time.
The company also advanced initiatives to strengthen credit performance and operating efficiency. Enhanced fraud controls introduced in June include third-party fraud scores, step-up identity verification, and a dedicated central fraud operations team, and the company’s new proprietary origination scorecard is now live in the majority of its states. The company’s new branch loan origination platform will be live in all branches during the fourth quarter. In collections, the company has centralized the management of late-stage delinquent accounts, enabling its branches to focus on sales and early-stage delinquency, and has deployed enhanced contact data, branded calling, and AI-enabled tools to improve customer engagement, cure rates, and collection efficiency.
In July 2026, the company launched end-to-end digital lending, enabling customers to complete the entire loan process online. The company is scaling the channel with discipline, expanding only as credit performance validates its risk-adjusted return expectations. Over time, the company expects digital originations to complement its branch network, which remains at the core of its operations, and to become an important contributor to growth.
Fourth Quarter 2026 Dividend
The company’s Board of Directors has declared a dividend of $0.30 per common share for the fourth quarter of 2026. The dividend will be paid on December 16, 2026 to shareholders of record as of the close of business on November 18, 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 September 30, 2026, the company had net finance receivables of $2.2 billion and debt of $1.7 billion. The debt consisted of:
4
As of September 30, 2026, the company’s unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was $324 million, or 41.5%, and the company had available liquidity of $104.0 million, including unrestricted cash on hand and immediate availability to draw down cash from its revolving credit facilities. As of September 30, 2026, the company’s fixed-rate debt as a percentage of total debt was 74%, with a weighted-average coupon of 4.8%.
The company had a funded debt-to-equity ratio of 4.6 to 1.0 and a stockholders’ equity ratio of 17.3%, each as of September 30, 2026. On a non-GAAP basis, the company had a funded debt-to-tangible equity ratio of 5.1 to 1.0, as of September 30, 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 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.
5
Forward-Looking Statements
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead represent Regional Management Corp.’s expectations or beliefs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlooks or future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “outlook,” and similar expressions may be used to identify these forward-looking statements. Such forward-looking statements speak only as of the date on which they were made and are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. As a result, actual performance and results may differ materially from those contemplated by these forward-looking statements. Therefore, investors should not place undue reliance on forward-looking statements.
Factors that could cause actual results or performance to differ from the expectations expressed or implied in forward-looking statements include, but are not limited to, the following: managing growth effectively, implementing Regional Management’s growth strategy, opening new branches as planned, and continuing to expand our lending partnership with Column N.A.; Regional Management’s convenience check strategy; Regional Management’s policies and procedures for underwriting, processing, and servicing loans; Regional Management’s ability to collect on its loan portfolio; Regional Management’s insurance operations; exposure to credit risk and repayment risk, which risks may increase in light of adverse or recessionary economic conditions; the implementation of evolving underwriting models and processes, including as to the effectiveness of Regional Management's custom scorecards; changes in the competitive environment in which Regional Management operates or a decrease in the demand for its products; the geographic concentration of Regional Management’s loan portfolio; the failure of third-party service providers, including those providing information technology products; changes in economic conditions in the markets Regional Management serves, including levels of unemployment and bankruptcies; the ability to achieve successful acquisitions and strategic alliances; the ability to realize the anticipated benefits from our lending partnership with Column N.A.; the ability to make technological improvements as quickly as competitors; security breaches, cyber-attacks, failures in information systems, or fraudulent activity; the development and use of artificial intelligence; the ability to originate loans; reliance on information technology resources and providers, including the risk of prolonged system outages; changes in current revenue and expense trends, including trends affecting delinquencies and credit losses; any future public health crises, including the impact of such crisis on our operations and financial condition; changes in operating and administrative expenses; the departure, transition, or replacement of key personnel; the ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support Regional Management’s operations and initiatives; changes in interest rates; existing sources of liquidity may become insufficient or access to these sources may become unexpectedly restricted; exposure to financial risk due to asset-backed securitization transactions; risks related to regulation and legal proceedings, including changes in laws or regulations or in the interpretation
6
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.
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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||||||||||||
|
3Q 26 |
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3Q 25 |
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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 |
$ |
155,747 |
|
$ |
148,672 |
|
$ |
7,075 |
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|
4.8 |
% |
$ |
456,321 |
|
$ |
425,920 |
|
$ |
30,401 |
|
|
7.1 |
% |
Insurance income, net |
|
10,727 |
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|
11,391 |
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|
(664 |
) |
|
(5.8 |
)% |
|
33,513 |
|
|
34,187 |
|
|
(674 |
) |
|
(2.0 |
)% |
Other income |
|
12,302 |
|
|
5,424 |
|
|
6,878 |
|
|
126.8 |
% |
|
24,238 |
|
|
15,789 |
|
|
8,449 |
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|
53.5 |
% |
Total revenue |
|
178,776 |
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|
165,487 |
|
|
13,289 |
|
|
8.0 |
% |
|
514,072 |
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|
475,896 |
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|
38,176 |
|
|
8.0 |
% |
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|
|
|
|
|
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|
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|
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||||||||
Expenses |
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|
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||||||||
Provision for credit losses |
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66,163 |
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|
60,474 |
|
|
(5,689 |
) |
|
(9.4 |
)% |
|
200,037 |
|
|
179,053 |
|
|
(20,984 |
) |
|
(11.7 |
)% |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Personnel |
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40,546 |
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|
39,517 |
|
|
(1,029 |
) |
|
(2.6 |
)% |
|
119,321 |
|
|
119,243 |
|
|
(78 |
) |
|
(0.1 |
)% |
Occupancy |
|
7,451 |
|
|
7,160 |
|
|
(291 |
) |
|
(4.1 |
)% |
|
22,182 |
|
|
20,977 |
|
|
(1,205 |
) |
|
(5.7 |
)% |
Marketing |
|
5,312 |
|
|
4,212 |
|
|
(1,100 |
) |
|
(26.1 |
)% |
|
14,382 |
|
|
14,677 |
|
|
295 |
|
|
2.0 |
% |
Other |
|
15,318 |
|
|
13,179 |
|
|
(2,139 |
) |
|
(16.2 |
)% |
|
42,850 |
|
|
38,159 |
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|
(4,691 |
) |
|
(12.3 |
)% |
Total general and administrative |
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68,627 |
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|
64,068 |
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(4,559 |
) |
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(7.1 |
)% |
|
198,735 |
|
|
193,056 |
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|
(5,679 |
) |
|
(2.9 |
)% |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
24,148 |
|
|
21,971 |
|
|
(2,177 |
) |
|
(9.9 |
)% |
|
70,064 |
|
|
62,168 |
|
|
(7,896 |
) |
|
(12.7 |
)% |
Income before income taxes |
|
19,838 |
|
|
18,974 |
|
|
864 |
|
|
4.6 |
% |
|
45,236 |
|
|
41,619 |
|
|
3,617 |
|
|
8.7 |
% |
Income taxes |
|
4,725 |
|
|
4,618 |
|
|
(107 |
) |
|
(2.3 |
)% |
|
10,569 |
|
|
10,116 |
|
|
(453 |
) |
|
(4.5 |
)% |
Net income |
$ |
15,113 |
|
$ |
14,356 |
|
$ |
757 |
|
|
5.3 |
% |
$ |
34,667 |
|
$ |
31,503 |
|
$ |
3,164 |
|
|
10.0 |
% |
Net income per common share: |
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|
|
|
|
|
|
|
|
|
|
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|
|
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||||||||
Basic |
$ |
1.68 |
|
$ |
1.53 |
|
$ |
0.15 |
|
|
9.8 |
% |
$ |
3.83 |
|
$ |
3.32 |
|
$ |
0.51 |
|
|
15.4 |
% |
Diluted |
$ |
1.61 |
|
$ |
1.42 |
|
$ |
0.19 |
|
|
13.4 |
% |
$ |
3.63 |
|
$ |
3.15 |
|
$ |
0.48 |
|
|
15.2 |
% |
Weighted-average common shares outstanding: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
8,975 |
|
|
9,370 |
|
|
395 |
|
|
4.2 |
% |
|
9,041 |
|
|
9,493 |
|
|
452 |
|
|
4.8 |
% |
Diluted |
|
9,362 |
|
|
10,133 |
|
|
771 |
|
|
7.6 |
% |
|
9,542 |
|
|
10,000 |
|
|
458 |
|
|
4.6 |
% |
Return on average assets (annualized) |
|
2.8 |
% |
|
2.9 |
% |
|
|
|
|
|
2.2 |
% |
|
2.2 |
% |
|
|
|
|
||||
Return on average equity (annualized) |
|
15.9 |
% |
|
15.6 |
% |
|
|
|
|
|
12.3 |
% |
|
11.7 |
% |
|
|
|
|
||||
8
Regional Management Corp. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands, except par value amounts)
|
|
|
|
|
Increase (Decrease) |
|
||||||
|
3Q 26 |
|
3Q 25 |
|
$ |
|
% |
|
||||
Assets |
|
|
|
|
|
|
|
|
||||
Cash |
$ |
7,628 |
|
$ |
4,084 |
|
$ |
3,544 |
|
|
86.8 |
% |
Net finance receivables |
|
2,209,925 |
|
|
2,053,017 |
|
|
156,908 |
|
|
7.6 |
% |
Unearned insurance premiums |
|
(49,073 |
) |
|
(50,987 |
) |
|
1,914 |
|
|
3.8 |
% |
Allowance for credit losses |
|
(230,800 |
) |
|
(212,000 |
) |
|
(18,800 |
) |
|
(8.9 |
)% |
Net finance receivables, less unearned insurance premiums and allowance for credit losses |
|
1,930,052 |
|
|
1,790,030 |
|
|
140,022 |
|
|
7.8 |
% |
Restricted cash |
|
133,276 |
|
|
104,459 |
|
|
28,817 |
|
|
27.6 |
% |
Lease assets |
|
45,903 |
|
|
40,782 |
|
|
5,121 |
|
|
12.6 |
% |
Intangible assets |
|
36,355 |
|
|
30,385 |
|
|
5,970 |
|
|
19.6 |
% |
Restricted available-for-sale investments |
|
24,015 |
|
|
22,344 |
|
|
1,671 |
|
|
7.5 |
% |
Property and equipment |
|
12,576 |
|
|
12,996 |
|
|
(420 |
) |
|
(3.2 |
)% |
Deferred tax assets, net |
|
— |
|
|
587 |
|
|
(587 |
) |
|
(100.0 |
)% |
Other assets |
|
20,634 |
|
|
22,599 |
|
|
(1,965 |
) |
|
(8.7 |
)% |
Total assets |
$ |
2,210,439 |
|
$ |
2,028,266 |
|
$ |
182,173 |
|
|
9.0 |
% |
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
||||
Liabilities: |
|
|
|
|
|
|
|
|
||||
Debt |
$ |
1,749,991 |
|
$ |
1,581,992 |
|
$ |
167,999 |
|
|
10.6 |
% |
Unamortized debt issuance costs |
|
(4,141 |
) |
|
(7,521 |
) |
|
3,380 |
|
|
44.9 |
% |
Net debt |
|
1,745,850 |
|
|
1,574,471 |
|
|
171,379 |
|
|
10.9 |
% |
Lease liabilities |
|
48,018 |
|
|
42,906 |
|
|
5,112 |
|
|
11.9 |
% |
Deferred tax liabilities, net |
|
1,090 |
|
|
— |
|
|
1,090 |
|
|
100.0 |
% |
Accounts payable and accrued expenses |
|
34,131 |
|
|
38,971 |
|
|
(4,840 |
) |
|
(12.4 |
)% |
Total liabilities |
|
1,829,089 |
|
|
1,656,348 |
|
|
172,741 |
|
|
10.4 |
% |
Stockholders’ equity: |
|
|
|
|
|
|
|
|
||||
Preferred stock ($0.10 par value, 100,000 shares authorized, none issued or outstanding) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Common stock ($0.10 par value, 1,000,000 shares authorized, 15,411 shares issued and 9,187 shares outstanding at September 30, 2026 and 15,220 shares issued and 9,803 shares outstanding at September 30, 2025) |
|
1,541 |
|
|
1,522 |
|
|
19 |
|
|
1.2 |
% |
Additional paid-in capital |
|
144,101 |
|
|
139,868 |
|
|
4,233 |
|
|
3.0 |
% |
Retained earnings |
|
436,623 |
|
|
400,844 |
|
|
35,779 |
|
|
8.9 |
% |
Accumulated other comprehensive loss |
|
(392 |
) |
|
(10 |
) |
|
(382 |
) |
|
(3,820.0 |
)% |
Treasury stock (6,224 shares at September 30, 2026 and 5,417 shares at |
|
(200,523 |
) |
|
(170,306 |
) |
|
(30,217 |
) |
|
(17.7 |
)% |
Total stockholders’ equity |
|
381,350 |
|
|
371,918 |
|
|
9,432 |
|
|
2.5 |
% |
Total liabilities and stockholders’ equity |
$ |
2,210,439 |
|
$ |
2,028,266 |
|
$ |
182,173 |
|
|
9.0 |
% |
9
Regional Management Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
(dollars in thousands, except per share amounts)
|
|
Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
QoQ $ |
|
|
QoQ % |
|
|
3Q 25 |
|
|
YoY $ |
|
|
YoY % |
|
|||||||
Large loans |
|
$ |
1,742,013 |
|
|
$ |
1,659,685 |
|
|
$ |
82,328 |
|
|
|
5.0 |
% |
|
$ |
1,512,140 |
|
|
$ |
229,873 |
|
|
|
15.2 |
% |
Small loans |
|
|
467,912 |
|
|
|
488,568 |
|
|
|
(20,656 |
) |
|
|
(4.2 |
)% |
|
|
540,877 |
|
|
|
(72,965 |
) |
|
|
(13.5 |
)% |
Total |
|
$ |
2,209,925 |
|
|
$ |
2,148,253 |
|
|
$ |
61,672 |
|
|
|
2.9 |
% |
|
$ |
2,053,017 |
|
|
$ |
156,908 |
|
|
|
7.6 |
% |
Number of branches |
|
|
354 |
|
|
|
357 |
|
|
|
(3 |
) |
|
|
(0.8 |
)% |
|
|
349 |
|
|
|
5 |
|
|
|
1.4 |
% |
Net finance receivables per branch |
|
$ |
6,243 |
|
|
$ |
6,018 |
|
|
$ |
225 |
|
|
|
3.7 |
% |
|
$ |
5,883 |
|
|
$ |
360 |
|
|
|
6.1 |
% |
|
|
Average Net Finance Receivables |
|
|||||||||||||||||||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
QoQ $ |
|
|
QoQ % |
|
|
3Q 25 |
|
|
YoY $ |
|
|
YoY % |
|
|||||||
Large loans |
|
$ |
1,697,088 |
|
|
$ |
1,620,686 |
|
|
$ |
76,402 |
|
|
|
4.7 |
% |
|
$ |
1,460,187 |
|
|
$ |
236,901 |
|
|
|
16.2 |
% |
Small loans |
|
|
473,659 |
|
|
|
494,693 |
|
|
|
(21,034 |
) |
|
|
(4.3 |
)% |
|
|
541,201 |
|
|
|
(67,542 |
) |
|
|
(12.5 |
)% |
Total |
|
$ |
2,170,747 |
|
|
$ |
2,115,379 |
|
|
$ |
55,368 |
|
|
|
2.6 |
% |
|
$ |
2,001,388 |
|
|
$ |
169,359 |
|
|
|
8.5 |
% |
|
|
Revenue Yields (1) |
|
|||||||||||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
QoQ |
|
|
3Q 25 |
|
|
YoY |
|
|||||
Large loans |
|
|
27.0 |
% |
|
|
26.6 |
% |
|
|
0.4 |
% |
|
|
27.1 |
% |
|
|
(0.1 |
)% |
Small loans |
|
|
34.7 |
% |
|
|
34.3 |
% |
|
|
0.4 |
% |
|
|
36.7 |
% |
|
|
(2.0 |
)% |
Total interest and fee yield |
|
|
28.7 |
% |
|
|
28.4 |
% |
|
|
0.3 |
% |
|
|
29.7 |
% |
|
|
(1.0 |
)% |
Total revenue yield |
|
|
32.9 |
% |
|
|
31.8 |
% |
|
|
1.1 |
% |
|
|
33.1 |
% |
|
|
(0.2 |
)% |
(1) Annualized as a percentage of average net finance receivables.
|
|
Components of Increase in Interest and Fee Income |
|
|||||||||||||
|
|
3Q 26 Compared to 3Q 25 |
|
|||||||||||||
|
|
Increase (Decrease) |
|
|||||||||||||
|
|
Volume |
|
|
Rate |
|
|
Volume & Rate |
|
|
Total |
|
||||
Large loans |
|
$ |
16,057 |
|
|
$ |
(297 |
) |
|
$ |
(49 |
) |
|
$ |
15,711 |
|
Small loans |
|
|
(6,203 |
) |
|
|
(2,780 |
) |
|
|
347 |
|
|
|
(8,636 |
) |
Product mix |
|
|
2,727 |
|
|
|
(1,999 |
) |
|
|
(728 |
) |
|
|
— |
|
Total |
|
$ |
12,581 |
|
|
$ |
(5,076 |
) |
|
$ |
(430 |
) |
|
$ |
7,075 |
|
10
|
|
Loans Originated (1) |
|
|||||||||||||||||||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
QoQ $ |
|
|
QoQ % |
|
|
3Q 25 |
|
|
YoY $ |
|
|
YoY % |
|
|||||||
Large loans |
|
$ |
405,935 |
|
|
$ |
371,319 |
|
|
$ |
34,616 |
|
|
|
9.3 |
% |
|
$ |
363,055 |
|
|
$ |
42,880 |
|
|
|
11.8 |
% |
Small loans |
|
|
124,316 |
|
|
|
132,316 |
|
|
|
(8,000 |
) |
|
|
(6.0 |
)% |
|
|
159,210 |
|
|
|
(34,894 |
) |
|
|
(21.9 |
)% |
Total |
|
$ |
530,251 |
|
|
$ |
503,635 |
|
|
$ |
26,616 |
|
|
|
5.3 |
% |
|
$ |
522,265 |
|
|
$ |
7,986 |
|
|
|
1.5 |
% |
(1) Represents the principal balance of loan originations, refinancings, and purchases.
|
|
Other Key Metrics |
|
|||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
3Q 25 |
|
|||
Net credit losses |
|
$ |
59,363 |
|
|
$ |
64,506 |
|
|
$ |
51,274 |
|
Percentage of average net finance receivables (annualized) |
|
|
10.9 |
% |
|
|
12.2 |
% |
|
|
10.2 |
% |
Provision for credit losses |
|
$ |
66,163 |
|
|
$ |
69,006 |
|
|
$ |
60,474 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.2 |
% |
|
|
13.0 |
% |
|
|
12.1 |
% |
Percentage of total revenue |
|
|
37.0 |
% |
|
|
41.1 |
% |
|
|
36.5 |
% |
General and administrative expenses |
|
$ |
68,627 |
|
|
$ |
65,444 |
|
|
$ |
64,068 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.6 |
% |
|
|
12.4 |
% |
|
|
12.8 |
% |
Percentage of total revenue |
|
|
38.4 |
% |
|
|
39.0 |
% |
|
|
38.7 |
% |
Same store results (1): |
|
|
|
|
|
|
|
|
|
|||
Net finance receivables at period-end |
|
$ |
2,186,565 |
|
|
$ |
2,135,915 |
|
|
$ |
2,000,665 |
|
Net finance receivable growth rate |
|
|
6.7 |
% |
|
|
9.0 |
% |
|
|
9.9 |
% |
Number of branches in calculation |
|
|
340 |
|
|
|
345 |
|
|
|
333 |
|
(1) Same store sales reflect the change in year-over-year sales for the comparable branch base. The comparable branch base includes those branches open for at least one year.
|
|
Contractual Delinquency by Aging |
|
|||||||||||||||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
3Q 25 |
|
|||||||||||||||
Allowance for credit losses |
|
$ |
230,800 |
|
|
|
10.4 |
% |
|
$ |
224,000 |
|
|
|
10.4 |
% |
|
$ |
212,000 |
|
|
|
10.3 |
% |
|
|
|
1,860,883 |
|
|
|
84.2 |
% |
|
|
1,824,145 |
|
|
|
84.9 |
% |
|
|
1,740,356 |
|
|
|
84.8 |
% |
1 to 29 days past due |
|
|
183,257 |
|
|
|
8.3 |
% |
|
|
174,752 |
|
|
|
8.1 |
% |
|
|
168,380 |
|
|
|
8.2 |
% |
Delinquent accounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
30 to 59 days |
|
|
43,967 |
|
|
|
2.0 |
% |
|
|
40,971 |
|
|
|
2.0 |
% |
|
|
40,100 |
|
|
|
1.9 |
% |
60 to 89 days |
|
|
36,937 |
|
|
|
1.7 |
% |
|
|
32,763 |
|
|
|
1.5 |
% |
|
|
31,914 |
|
|
|
1.6 |
% |
90 to 119 days |
|
|
31,585 |
|
|
|
1.4 |
% |
|
|
26,497 |
|
|
|
1.2 |
% |
|
|
26,304 |
|
|
|
1.2 |
% |
120 to 149 days |
|
|
27,927 |
|
|
|
1.3 |
% |
|
|
24,404 |
|
|
|
1.1 |
% |
|
|
23,722 |
|
|
|
1.2 |
% |
150 to 179 days |
|
|
25,369 |
|
|
|
1.1 |
% |
|
|
24,721 |
|
|
|
1.2 |
% |
|
|
22,241 |
|
|
|
1.1 |
% |
Total delinquency |
|
$ |
165,785 |
|
|
|
7.5 |
% |
|
$ |
149,356 |
|
|
|
7.0 |
% |
|
$ |
144,281 |
|
|
|
7.0 |
% |
Total net finance receivables |
|
$ |
2,209,925 |
|
|
|
100.0 |
% |
|
$ |
2,148,253 |
|
|
|
100.0 |
% |
|
$ |
2,053,017 |
|
|
|
100.0 |
% |
|
|
Contractual Delinquency by Product |
|
|||||||||||||||||||||
|
|
3Q 26 |
|
|
2Q 26 |
|
|
3Q 25 |
|
|||||||||||||||
Large loans |
|
$ |
111,586 |
|
|
|
6.4 |
% |
|
$ |
97,228 |
|
|
|
5.9 |
% |
|
$ |
85,865 |
|
|
|
5.7 |
% |
Small loans |
|
|
54,199 |
|
|
|
11.6 |
% |
|
|
52,128 |
|
|
|
10.7 |
% |
|
|
58,416 |
|
|
|
10.8 |
% |
Total |
|
$ |
165,785 |
|
|
|
7.5 |
% |
|
$ |
149,356 |
|
|
|
7.0 |
% |
|
$ |
144,281 |
|
|
|
7.0 |
% |
11
|
Income Statement Quarterly Trend |
|
|||||||||||||||||||
|
3Q 25 |
|
4Q 25 |
|
1Q 26 |
|
2Q 26 |
|
3Q 26 |
|
QoQ $ |
|
YoY $ |
|
|||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest and fee income |
$ |
148,672 |
|
$ |
153,029 |
|
$ |
150,296 |
|
$ |
150,278 |
|
$ |
155,747 |
|
$ |
5,469 |
|
$ |
7,075 |
|
Insurance income, net |
|
11,391 |
|
|
11,386 |
|
|
11,810 |
|
|
10,976 |
|
|
10,727 |
|
|
(249 |
) |
|
(664 |
) |
Other income |
|
5,424 |
|
|
5,287 |
|
|
5,184 |
|
|
6,752 |
|
|
12,302 |
|
|
5,550 |
|
|
6,878 |
|
Total revenue |
|
165,487 |
|
|
169,702 |
|
|
167,290 |
|
|
168,006 |
|
|
178,776 |
|
|
10,770 |
|
|
13,289 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Provision for credit losses |
|
60,474 |
|
|
66,379 |
|
|
64,868 |
|
|
69,006 |
|
|
66,163 |
|
|
2,843 |
|
|
(5,689 |
) |
|
|
39,517 |
|
|
40,394 |
|
|
39,342 |
|
|
39,433 |
|
|
40,546 |
|
|
(1,113 |
) |
|
(1,029 |
) |
Occupancy |
|
7,160 |
|
|
7,227 |
|
|
7,479 |
|
|
7,252 |
|
|
7,451 |
|
|
(199 |
) |
|
(291 |
) |
Marketing |
|
4,212 |
|
|
3,874 |
|
|
4,181 |
|
|
4,889 |
|
|
5,312 |
|
|
(423 |
) |
|
(1,100 |
) |
Other |
|
13,179 |
|
|
13,024 |
|
|
13,662 |
|
|
13,870 |
|
|
15,318 |
|
|
(1,448 |
) |
|
(2,139 |
) |
Total general and administrative |
|
64,068 |
|
|
64,519 |
|
|
64,664 |
|
|
65,444 |
|
|
68,627 |
|
|
(3,183 |
) |
|
(4,559 |
) |
|
|
21,971 |
|
|
22,646 |
|
|
22,923 |
|
|
22,993 |
|
|
24,148 |
|
|
(1,155 |
) |
|
(2,177 |
) |
Income before income taxes |
|
18,974 |
|
|
16,158 |
|
|
14,835 |
|
|
10,563 |
|
|
19,838 |
|
|
9,275 |
|
|
864 |
|
Income taxes |
|
4,618 |
|
|
3,249 |
|
|
3,434 |
|
|
2,410 |
|
|
4,725 |
|
|
(2,315 |
) |
|
(107 |
) |
Net income |
$ |
14,356 |
|
$ |
12,909 |
|
$ |
11,401 |
|
$ |
8,153 |
|
$ |
15,113 |
|
$ |
6,960 |
|
$ |
757 |
|
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
1.53 |
|
$ |
1.40 |
|
$ |
1.24 |
|
$ |
0.91 |
|
$ |
1.68 |
|
$ |
0.77 |
|
$ |
0.15 |
|
Diluted |
$ |
1.42 |
|
$ |
1.30 |
|
$ |
1.18 |
|
$ |
0.85 |
|
$ |
1.61 |
|
$ |
0.76 |
|
$ |
0.19 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
9,370 |
|
|
9,233 |
|
|
9,163 |
|
|
8,988 |
|
|
8,975 |
|
|
13 |
|
|
395 |
|
Diluted |
|
10,133 |
|
|
9,941 |
|
|
9,662 |
|
|
9,604 |
|
|
9,362 |
|
|
242 |
|
|
771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Balance Sheet & Other Key Metrics Quarterly Trends |
|
|||||||||||||||||||
|
3Q 25 |
|
4Q 25 |
|
1Q 26 |
|
2Q 26 |
|
3Q 26 |
|
QoQ $ |
|
YoY $ |
|
|||||||
Total assets |
$ |
2,028,266 |
|
$ |
2,103,930 |
|
$ |
2,072,750 |
|
$ |
2,129,594 |
|
$ |
2,210,439 |
|
$ |
80,845 |
|
$ |
182,173 |
|
Net finance receivables |
$ |
2,053,017 |
|
$ |
2,140,199 |
|
$ |
2,104,001 |
|
$ |
2,148,253 |
|
$ |
2,209,925 |
|
$ |
61,672 |
|
$ |
156,908 |
|
Allowance for credit losses |
$ |
212,000 |
|
$ |
220,900 |
|
$ |
219,500 |
|
$ |
224,000 |
|
$ |
230,800 |
|
$ |
6,800 |
|
$ |
18,800 |
|
Debt |
$ |
1,581,992 |
|
$ |
1,650,764 |
|
$ |
1,621,398 |
|
$ |
1,675,942 |
|
$ |
1,749,991 |
|
$ |
74,049 |
|
$ |
167,999 |
|
Interest and fee yield (1) |
|
29.7 |
% |
|
29.3 |
% |
|
28.3 |
% |
|
28.4 |
% |
|
28.7 |
% |
|
0.3 |
% |
|
(1.0 |
)% |
Efficiency ratio (2) |
|
38.7 |
% |
|
38.0 |
% |
|
38.7 |
% |
|
39.0 |
% |
|
38.4 |
% |
|
(0.6 |
)% |
|
(0.3 |
)% |
Operating expense ratio (3) |
|
12.8 |
% |
|
12.4 |
% |
|
12.2 |
% |
|
12.4 |
% |
|
12.6 |
% |
|
0.2 |
% |
|
(0.2 |
)% |
Delinquency rate (4) |
|
7.0 |
% |
|
7.5 |
% |
|
7.2 |
% |
|
7.0 |
% |
|
7.5 |
% |
|
0.5 |
% |
|
0.5 |
% |
Net credit loss rate (5) |
|
10.2 |
% |
|
11.0 |
% |
|
12.5 |
% |
|
12.2 |
% |
|
10.9 |
% |
|
(1.3 |
)% |
|
0.7 |
% |
Book value per share |
$ |
37.94 |
|
$ |
39.05 |
|
$ |
40.25 |
|
$ |
40.51 |
|
$ |
41.51 |
|
$ |
1.00 |
|
$ |
3.57 |
|
(1) Annualized interest and fee income as a percentage of average net finance receivables.
(2) General and administrative expenses as a percentage of total revenue.
(3) Annualized general and administrative expenses as a percentage of average net finance receivables.
(4) Delinquent loans outstanding as a percentage of ending net finance receivables.
(5) Annualized net credit losses as a percentage of average net finance receivables.
12
|
|
Average Net Finance Receivables |
|
|||||||||||||
|
|
YTD 26 |
|
|
YTD 25 |
|
|
YoY $ |
|
|
YoY % |
|
||||
Large loans |
|
$ |
1,637,139 |
|
|
$ |
1,391,470 |
|
|
$ |
245,669 |
|
|
|
17.7 |
% |
Small loans |
|
|
499,586 |
|
|
|
543,402 |
|
|
|
(43,816 |
) |
|
|
(8.1 |
)% |
Total |
|
$ |
2,136,725 |
|
|
$ |
1,934,872 |
|
|
$ |
201,853 |
|
|
|
10.4 |
% |
|
|
Revenue Yields (1) |
|
|||||||||
|
|
YTD 26 |
|
|
YTD 25 |
|
|
YoY |
|
|||
Large loans |
|
|
26.7 |
% |
|
|
26.6 |
% |
|
|
0.1 |
% |
Small loans |
|
|
34.4 |
% |
|
|
36.4 |
% |
|
|
(2.0 |
)% |
Total interest and fee yield |
|
|
28.5 |
% |
|
|
29.4 |
% |
|
|
(0.9 |
)% |
Total revenue yield |
|
|
32.1 |
% |
|
|
32.8 |
% |
|
|
(0.7 |
)% |
(1) Annualized as a percentage of average net finance receivables.
|
|
Components of Increase in Interest and Fee Income |
|
|||||||||||||
|
|
YTD 26 Compared to YTD 25 |
|
|||||||||||||
|
|
Increase (Decrease) |
|
|||||||||||||
|
|
Volume |
|
|
Rate |
|
|
Volume & Rate |
|
|
Total |
|
||||
Large loans |
|
$ |
49,041 |
|
|
$ |
384 |
|
|
$ |
67 |
|
|
$ |
49,492 |
|
Small loans |
|
|
(11,946 |
) |
|
|
(7,772 |
) |
|
|
627 |
|
|
|
(19,091 |
) |
Product mix |
|
|
7,339 |
|
|
|
(5,319 |
) |
|
|
(2,020 |
) |
|
|
— |
|
Total |
|
$ |
44,434 |
|
|
$ |
(12,707 |
) |
|
$ |
(1,326 |
) |
|
$ |
30,401 |
|
|
|
Loans Originated (1) |
|
|||||||||||||
|
|
YTD 26 |
|
|
YTD 25 |
|
|
YTD $ |
|
|
YTD % |
|
||||
Large loans |
|
$ |
1,042,714 |
|
|
$ |
941,337 |
|
|
$ |
101,377 |
|
|
|
10.8 |
% |
Small loans |
|
|
379,125 |
|
|
|
483,377 |
|
|
|
(104,252 |
) |
|
|
(21.6 |
)% |
Total |
|
$ |
1,421,839 |
|
|
$ |
1,424,714 |
|
|
$ |
(2,875 |
) |
|
|
(0.2 |
)% |
(1) Represents the principal balance of loan originations, refinancings, and purchases.
|
|
Other Key Metrics |
|
|||||
|
|
YTD 26 |
|
|
YTD 25 |
|
||
Net credit losses |
|
$ |
190,137 |
|
|
$ |
166,553 |
|
Percentage of average net finance receivables (annualized) |
|
|
11.9 |
% |
|
|
11.5 |
% |
Provision for credit losses |
|
$ |
200,037 |
|
|
$ |
179,053 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.5 |
% |
|
|
12.3 |
% |
Percentage of total revenue |
|
|
38.9 |
% |
|
|
37.6 |
% |
General and administrative expenses |
|
$ |
198,735 |
|
|
$ |
193,056 |
|
Percentage of average net finance receivables (annualized) |
|
|
12.4 |
% |
|
|
13.3 |
% |
Percentage of total revenue |
|
|
38.7 |
% |
|
|
40.6 |
% |
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 table provides a reconciliation of GAAP measures to non-GAAP measures.
|
|
3Q 26 |
|
|
Debt |
|
$ |
1,749,991 |
|
|
|
|
381,350 |
|
Less: Intangible assets |
|
|
36,355 |
|
Tangible equity (non-GAAP) |
|
$ |
344,995 |
|
|
|
|
4.6 |
x |
Funded debt-to-tangible equity ratio (non-GAAP) |
|
|
5.1 |
x |
14
3Q 26 Earnings Presentation October 28, 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 crises 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
3Q 26 Highlights Portfolio Trends $157MM ENR Growth YoY Up 7.6% YoY $62MM Sequential ENR Growth In line with seasonal norms $530MM Origination Volume Up $8MM, or 1.5%, YoY $6.2MM ENR per Branch Up 6.1% YoY $345MM Auto-Secured Portfolio Up $70MM, or 25.2%, YoY Operating Effectiveness 7.5% 30+ DQ % Up 50 bps both sequentially and YoY 10.9% Net Credit Loss Rate Better by 130 bps sequentially; up 70 bps YoY 12.6% Operating Expense Ratio 20 bps decrease YoY, inclusive of 40 bps impact from bank partnership program 74% Fixed-Rate Debt WAC of 4.8% $324MM Unused Capacity Substantial bandwidth to fund growth Returns $1.61 Diluted EPS Up 13.4% YoY 15.9% ROE / 2.8% ROA Up 30 bps YoY / Down 10 bps YoY 4.0% Dividend Yield 3Q 26 $0.30 dividend per share $31MM Capital Return and $8MM Increase in Stockholders’ Equity (YTD) $50MM Capital Generation (YTD)¹ Strategic Execution Bank Partnership Program Expanded the bank partnership NC (launched 3Q, completion 4Q) LA and MO (launched 4Q) 40%+ of current run-rate originations Pre-tax margin projected to improve 200+ bps vs. similar state-licensed loans Omni-Channel Lending End-to-end digital lending capability launched July 2026 Technology, Analytics, & AI Completion of new branch origination platform rollout expected in 4Q Proprietary origination scorecard live in three states during 3Q; full rollout expected in 4Q 2026 This is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measure. 3
3Q 26 Financial Highlights Net income of $15.1MM and diluted EPS of $1.61 ENR up $156.9MM, or 7.6%, YoY Record total revenue of $178.8MM grew 8.0% YoY Operating expense ratio of 12.6%, a YoY improvement of 20 bps, inclusive of 40 bps impact from bank partnership program 4
Responsible Portfolio Growth 5 Portfolio Growth Trend ($ in millions) Total originations up 5.3% from 2Q 26 and 1.5% from 3Q 25 Achieved 7.6% YoY portfolio growth driven by large loans, including high-quality auto-secured loans, and new branch openings Auto-secured product portfolio grew $69.5MM to 15.6% of the total portfolio, compared to 13.4% in the prior-year period New branches opened since 3Q 25 have generated $23.4MM, or 14.9%, of total YoY portfolio growth Quarterly Origination Trend ($ in millions)
Increased ENR Per Branch is Driving Efficiency 14 new branches opened since 3Q 25 have generated $23.4MM, or 14.9%, of the $156.9MM YoY portfolio growth Same store receivables grew 6.7% YoY, compared to 3Q 25 YoY growth of 9.9% 6 Note: ENR per branch in the age cohorts less than 5+ years may fluctuate period-over-period due to differences in average branch maturity within each cohort and the timing of new branch openings.
7 Revenue Up 8.0% on Receivable Growth and Bank Partnership Expansion Total Revenue and Interest and Fee Yields Total Revenue ($ in millions) Record total revenue of $178.8MM grew 8.0% YoY, driven by a $169.4MM increase in ANR and fee income from the bank partnership rollout Total revenue yield decreased 20 bps YoY primarily due to mix shift toward larger loans and auto-secured products, which typically carry lower yields and lower loss rates, partially offset by bank partnership fee income of 120 bps Total revenue yield up 110 bps sequentially, driven by bank partnership expansion and seasonality
Recent Credit Trends 30+ & 90+ DQ % ($ in millions) Net Credit Loss Rates 8 3Q 26 30+ delinquency rate increased 50 bps both sequentially and YoY to 7.5%. The increase primarily reflects slower portfolio growth and the performance of higher-risk segments that we have since tightened. Total delinquency of $165.8MM compares favorably to the allowance for credit losses of $230.8MM as of 3Q 26 3Q 26 net credit loss rate decreased 130 bps sequentially, due to seasonality 3Q 26 net credit loss rate increased 70 bps YoY primarily due to loans originated in 2025 in higher-risk segments and slower portfolio growth than the prior-year period
Reserves For Credit Losses ACL increased $6.8MM in 3Q 26, driven by portfolio growth; ACL rate remained flat sequentially at 10.4%. The 10 bps YoY increase in the ACL rate reflects updates to macroeconomic assumptions. Allowance for Credit Losses ($ in millions) 9
10 Operating Expense Ratio ($ in millions) Operating expense ratio of 12.6%, a YoY improvement of 20 bps, despite bank partnership impact and investment in technology, digital capabilities, and growth (including 14 new branches opened since 3Q 25) Inclusive of 40 bps from bank partnership loans, where origination costs are expensed upfront rather than deferred YoY total revenue growth outpaced G&A expense growth by 2.9x Investing for Long-Term Growth While Maintaining Expense Discipline
Cost of Funds 11 Interest Expense ($ in millions) Cost of funds stable at 4.4% both sequentially and YoY
Total unused capacity was $324MM (subject to borrowing base) as of September 30, 2026 Available liquidity of $104MM as of September 30, 2026 Fixed-rate debt represented 74% of total debt as of September 30, 2026, with WAC of 4.8% Strong Funding Profile Unused Capacity ($ 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 3Q 26. Capital Performance Since Year-End 2020 (2) $190MM total capital increase $205MM returned to stockholders $395MM (1) capital generated at 12.2% CAGR 20.9% 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
Earnings Drivers and Long-Term Objectives 2026: Targeting YoY net income growth of 6%–9%, EPS growth of 10%–13%, and ENR growth of 5%–7% 2027: Strong YoY net income growth, driven by portfolio growth, bank partnership, and credit improvement Long-term: ROE ≥18%, ROA ≥ 3%, and NCL rate below 10% 3Q 2026 Results Originations & Loan Growth CECL Provision Reserve Impact Net Credit Loss Rate Strategic Initiatives Net Income Benefit ~$3.0MM Primarily driven by bank partnership Note: Ranges reflect current expectations and are subject to change based on geopolitical and macroeconomic conditions that may affect loan demand and resulting economics. Long-term objectives are not tied to a specific year and are distinct from 2027 expectations. NCL Rate of 10.9% Seasonal decrease vs. prior quarter Build of $6.8MM Seasonal increase in portfolio growth drove reserve build Growth of $62MM Growth from large loans, including high-quality auto-secured loans and new branch openings NCL Rate of ~11.5% Recent credit trends and expected seasonal increase vs. prior quarter Build of ~$6.0MM Reserve build expected to align with portfolio growth Growth of ~$60MM Loan demand expected to remain higher in 4Q driven by holiday demand 4Q 2026 Guidance Net Income Benefit ~$5.0MM Strategic initiative economics are included in full-year net income guidance Long-Term Objectives Return on Equity ≥18% Return on equity supported by portfolio growth, bank partnership, improved credit performance, and operating efficiency Return on Assets ≥3% Return on assets driven by strong risk-adjusted returns and efficient capital deployment Net Credit Loss Rate <10% Net credit loss rate below 10% achieved through enhanced credit models and investments in data, analytics, and collections 14
Appendix 15
Digitally sourced origination volume represented 32.2% of total new borrower volume Large loans (inclusive of auto-secured) represented 84.4% of new borrower digitally sourced loans originated in 3Q 26 Digitally Sourced Origination Volume ($ 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 percentage of average stockholders’ equity are non-GAAP measures that incorporate stock repurchases and dividends returned to stockholders into measures of 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 3Q 26 Non-GAAP Financial Measures (Cont’d)
Non-GAAP Financial Measures (Cont’d) 21
Glossary 22 ACL – Allowance for Credit Losses Allowance for credit losses (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 Bank partnership fee income – marketing, processing, and servicing fees earned for services performed to administer the bank partnership program 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 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 – 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
Exhibit 99.3
Regional Management Corp. Appoints Elizabeth Canini as
Chief Credit Risk Officer
Greenville, South Carolina – October 28, 2026 – Regional Management Corp. (NYSE: RM), a diversified consumer finance company, announced today the appointment of Elizabeth Canini as Chief Credit Risk Officer, effective November 2, 2026.
Ms. Canini has more than 25 years of credit risk and consumer lending experience, with senior leadership roles at Citi, PNC, and HSBC. Most recently, she served as Managing Director and Senior Credit Officer for the Retail Bank at Citi, where she held independent second-line credit authority over the bank’s global residential mortgage portfolio. Prior to Citi, she spent 11 years at PNC, most recently as Senior Vice President and Head of Product Management – Student and Personal Lending, where she held full P&L responsibility for the bank’s unsecured personal lending and student lending portfolios. She began her career at HSBC, where she spent more than a decade in various credit risk roles.
“We are pleased to welcome Liz to Regional,” said Lakhbir S. Lamba, President and Chief Executive Officer of Regional Management Corp. “Liz has led consumer lending businesses and successfully overseen the credit management of large, complex portfolios, which gives her a balanced view of both growth and risk. Her depth in credit policy, analytics, and portfolio management will serve Regional well as we continue to focus on driving sustainable and profitable growth. In addition, I want to thank Manish Parmar for his many contributions to Regional over the past six years.”
“Regional has built a strong franchise serving customers who rely on accessible, easy-to-understand financial solutions,” said Ms. Canini. “I look forward to working with Lakhbir and the Regional team to further strengthen our credit capabilities and support responsible growth.”
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.
Contact:
Investor Relations
Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com