Regional Management Corp. Announces Second Quarter 2026 Results

- Quarterly net income of $8.2 million and diluted earnings per share of $0.85 -

- Year-to-date net income and diluted earnings per share up 14% and 17% year-over-year, respectively -

- Annualized operating expense ratio improves 80 basis points year-over-year -

GREENVILLE, S.C.--(BUSINESS WIRE)--Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the second quarter ended June 30, 2026.

“We delivered strong second quarter revenue of $168 million and improved our operating expense ratio by 80 basis points year-over-year to 12.4%, while growing our higher-quality auto-secured portfolio and returning capital to shareholders,” said Lakhbir S. Lamba, President and Chief Executive Officer of Regional Management Corp. “Year-to-date, net income and diluted earnings per share are up 14% and 17%, respectively. At the same time, portfolio growth fell short of our expectations, and our net credit loss rate was modestly above our forecast, driven in part by slower portfolio growth. These results reflect a more competitive environment for customer acquisition and deliberate decisions to tighten underwriting in segments that did not meet our risk-adjusted return hurdles, which weighed on our near-term origination volumes.”

“We are accelerating execution against our strategic priorities, foremost among them our bank partnership,” continued Mr. Lamba. “We have implemented the partnership in Texas, our largest market, and its early results are very promising. We believe this partnership will be transformative to the reach, economics, and returns of our business and can materially change the trajectory of our net income and returns as we move into 2027. We are building from an even stronger foundation, and I am confident that the disciplined decisions we are making today will drive sustainable and profitable growth over the longer term.”

Second Quarter 2026 Highlights

• Net income for the second quarter of 2026 was $8.2 million and diluted earnings per share was $0.85, down 19.6% and 17.5% year-over-year, respectively. Net income for the six months ended June 30, 2026 was $19.6 million and diluted earnings per share was $2.03, up 14.0% and 17.3% year-over-year, respectively.

• Net finance receivables as of June 30, 2026 were $2.1 billion, an improvement of $187.9 million, or 9.6%, from the prior-year period, driven by strong performance from large loans, including demand for auto-secured products, and 12 new branches opened since June 30, 2025.

• Total originations of $503.6 million decreased 1.3% from the prior-year period.

• Large loan net finance receivables of $1.7 billion increased $246.3 million, or 17.4%, from the prior-year period and represented 77.3% of the total loan portfolio, compared to 72.1% in the prior-year period.

• Auto-secured net finance receivables of $323.7 million increased $78.1 million, or 31.8%, from the prior-year period and represented 15.1% of the total loan portfolio, compared to 12.5% in the prior-year period.

• Small loan net finance receivables of $488.6 million decreased $58.4 million, or 10.7%, from the prior-year period and represented 22.7% of the total loan portfolio, compared to 27.9% in the prior-year period.

• Second quarter total revenue of $168.0 million, an increase of $10.6 million, or 6.7%, from the prior-year period, primarily due to growth in average net finance receivables.

• Total revenue yield (annualized total revenue as a percentage of average net finance receivables) for the second quarter of 2026 was 31.8%, up 30 basis points sequentially, consistent with seasonality and the impact of our bank partnership, offset in part by lower insurance revenue yield. Total revenue yield decreased 110 basis points from the prior-year period primarily due to product mix shift.

• Interest and fee yield (annualized interest and fee income as a percentage of average net finance receivables) for the second quarter of 2026 was 28.4%, compared to 29.4% in the prior-year period, a decrease of 100 basis points from the prior-year period primarily due to product mix shift.

• Provision for credit losses for the second quarter of 2026 was $69.0 million, an increase of $8.4 million, or 13.9%, from the prior-year period, driven by portfolio growth.

• The net credit loss rate (annualized net credit losses as a percentage of average net finance receivables) for the second quarter of 2026 was 12.2%, a 30 basis point increase compared to 11.9% in the prior-year period. The current-quarter net credit loss rate included approximately 20 basis points of impact from slower portfolio growth.

• The provision for credit losses for the second quarter of 2026 included a sequential reserve increase of $4.5 million, primarily due to portfolio growth occurring during the second quarter of 2026.

• The allowance for credit losses was $224.0 million as of June 30, 2026, or 10.4% of net finance receivables, consistent sequentially.

• As of June 30, 2026, 30+ day contractual delinquencies totaled $149.4 million, or 7.0% of net finance receivables, a 20 basis point improvement sequentially and a 40 basis point increase from the prior-year period. The current-quarter delinquency percentage included approximately 20 basis points of impact from slower portfolio growth.

• The 30+ day contractual delinquency rate on the company’s higher-quality auto-secured portfolio was 2.0% as of June 30, 2026.

• General and administrative expenses for the second quarter of 2026 were $65.4 million, an increase of $2.5 million from the prior-year period. The operating expense ratio (annualized general and administrative expenses as a percentage of average net finance receivables) for the second quarter of 2026 was 12.4%. The ratio reflected an improvement of 80 basis points from 13.2% in the prior-year period.

• In the second quarter of 2026, the company repurchased 136,325 shares of its common stock at a weighted-average price of $36.68 per share under the company’s stock repurchase program.

Strategic Highlights

During the second quarter, the company continued to scale its bank partnership program with Column N.A., a nationally chartered bank, through which it has originated more than $65 million in loans since the program’s launch. The company has fully implemented the program for branch originations in Texas, its largest state, and plans to extend it to additional states beginning in the second half of 2026, with substantially all of its branch network expected to operate under the program by the end of 2027. Originating in partnership with a nationally chartered bank enables the company to offer more consistent products and pricing nationwide, accelerates its entry into new states, and broadens the base of customers it can serve, while improving loan-level economics as the program scales. Early origination, margin, and credit results have been encouraging.

In July 2026, the company launched an end-to-end digital lending capability that enables customers to complete the entire loan process online, strengthening its omni-channel operating model and its ability to compete with fintech lenders while its branch network remains at the core of its operations. The company intends to scale the capability in a disciplined manner as it confirms strong credit performance and risk-adjusted returns. The company also entered Florida in May 2026, its 20th state, and accelerated investments across its technology and analytics platform, including a new branch loan origination system, an enhanced machine-learning credit model, and the deployment of artificial intelligence in collections and customer service.

Third Quarter 2026 Dividend

The company’s Board of Directors has declared a dividend of $0.30 per common share for the third quarter of 2026. The dividend will be paid on September 16, 2026 to shareholders of record as of the close of business on August 19, 2026. The declaration and payment of any future dividend is subject to the discretion of the Board of Directors and will depend on a variety of factors, including the company’s financial condition and results of operations.

Liquidity and Capital Resources

As of June 30, 2026, the company had net finance receivables of $2.1 billion and debt of $1.7 billion. The debt consisted of:

• $208.1 million on the company’s $355 million senior revolving credit facility,
• $132.1 million on the company’s aggregate $425 million revolving warehouse credit facilities, and
• $1.3 billion through the company’s asset-backed securitizations.

As of June 30, 2026, the company’s unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was $442 million, or 56.6%, and the company had available liquidity of $127.9 million, including unrestricted cash on hand and immediate availability to draw down cash from its revolving credit facilities. As of June 30, 2026, the company’s fixed-rate debt as a percentage of total debt was 80%, with a weighted-average coupon of 4.8%.

The company had a funded debt-to-equity ratio of 4.4 to 1.0 and a stockholders’ equity ratio of 17.8%, each as of June 30, 2026. On a non-GAAP basis, the company had a funded debt-to-tangible equity ratio of 4.9 to 1.0, as of June 30, 2026. Please refer to the reconciliations of non-GAAP measures to comparable GAAP measures included at the end of this press release.

Conference Call Information

Regional Management Corp. will host a conference call and webcast today at 5:00 PM ET to discuss these results.

The dial-in number for the conference call is (877) 407-0752 (toll-free) or (201) 389-0912 (international). Please dial the number 10 minutes prior to the scheduled start time.

*** A supplemental slide presentation will be made available on Regional’s website prior to the earnings call at www.RegionalManagement.com. ***

In addition, a live webcast of the conference call will be available on Regional’s website at www.RegionalManagement.com.

A webcast replay of the call will be available at www.RegionalManagement.com for one year following the call.

About Regional Management Corp.

Regional Management Corp. (NYSE: RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name “Regional Finance” online and in branch locations in 20 states across the United States. Each of its loan products is structured on a fixed-rate, fixed-term basis with fully amortizing equal monthly installment payments, repayable at any time without penalty. Regional Management sources loans through its multiple channel platform, which includes branches, centrally managed direct mail campaigns, digital partners, and its consumer website. For more information, please visit www.RegionalManagement.com.

Forward-Looking Statements

This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead represent Regional Management Corp.’s expectations or beliefs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlooks or future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “outlook,” and similar expressions may be used to identify these forward-looking statements. Such forward-looking statements speak only as of the date on which they were made and are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. As a result, actual performance and results may differ materially from those contemplated by these forward-looking statements. Therefore, investors should not place undue reliance on forward-looking statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in forward-looking statements include, but are not limited to, the following: managing growth effectively, implementing Regional Management’s growth strategy, opening new branches as planned, and continuing to expand our lending partnership with Column N.A.; Regional Management’s convenience check strategy; Regional Management’s policies and procedures for underwriting, processing, and servicing loans; Regional Management’s ability to collect on its loan portfolio; Regional Management’s insurance operations; exposure to credit risk and repayment risk, which risks may increase in light of adverse or recessionary economic conditions; the implementation of evolving underwriting models and processes, including as to the effectiveness of Regional Management's custom scorecards; changes in the competitive environment in which Regional Management operates or a decrease in the demand for its products; the geographic concentration of Regional Management’s loan portfolio; the failure of third-party service providers, including those providing information technology products; changes in economic conditions in the markets Regional Management serves, including levels of unemployment and bankruptcies; the ability to achieve successful acquisitions and strategic alliances; the ability to realize the anticipated benefits from our lending partnership with Column N.A.; the ability to make technological improvements as quickly as competitors; security breaches, cyber-attacks, failures in information systems, or fraudulent activity; the development and use of artificial intelligence; the ability to originate loans; reliance on information technology resources and providers, including the risk of prolonged system outages; changes in current revenue and expense trends, including trends affecting delinquencies and credit losses; any future public health crises, including the impact of such crisis on our operations and financial condition; changes in operating and administrative expenses; the departure, transition, or replacement of key personnel; the ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support Regional Management’s operations and initiatives; changes in interest rates; existing sources of liquidity may become insufficient or access to these sources may become unexpectedly restricted; exposure to financial risk due to asset-backed securitization transactions; risks related to regulation and legal proceedings, including changes in laws or regulations or in the interpretation or enforcement of laws or regulations; changes in accounting standards, rules, and interpretations and the failure of related assumptions and estimates; the impact of changes in tax laws and guidance, including the timing and amount of revenues that may be recognized; risks related to the ownership of Regional Management’s common stock, including volatility in the market price of shares of Regional Management’s common stock; the timing and amount of future cash dividend payments; and anti-takeover provisions in Regional Management’s charter documents and applicable state law.

The foregoing factors and others are discussed in greater detail in Regional Management’s filings with the Securities and Exchange Commission. Regional Management will not update or revise forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments, or otherwise, except as required by law. Regional Management is not responsible for changes made to this document by wire services or Internet services.

Investor Relations
Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com