Regional Management Corp. · NYSE:RM
Regional Management — Q2 2025 Earnings Presentation
24 slides from Regional Management's earnings presentation, Jul 30, 2025
Slide 1: 2Q 25 Earnings Presentation
2Q 25 Earnings Presentation July 30, 2025
Slide 2: Legal Disclosures
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, stati
Slide 3: 2Q 25 Highlights
2Q 25 Highlights Growth Operating Effectiveness Returns 579,100 Customer Accounts 6.6% 30+ Delinquency Rate $1.03 Diluted Earnings Per Share Up 6.1% YoY 30 bps improvement YoY Up 19.8% YoY $70MM Sequential ENR Growth 11.9% Net Credit Loss Rate 11.3% ROE / 2.1% ROA Up $187MM, or 10.5% YoY 80 bps impr
Slide 4: 2Q 25 Financial Highlights
2Q 25 Financial Highlights $ Chg % Chg • Significant improvements across $ in millions (except per share amounts) 2Q 25 2Q 24 B/(W) B/(W) key financial metrics, including net Total revenue $ 157.4 $ 143.0 $ 14.4 10.1% income, up 20.1% year-over-year Provision for credit losses 60.6 53.8 (6.8) (12.6%
Slide 5: Accelerating Portfolio Growth
Accelerating Portfolio Growth Quarterly Origination Trend ($ in millions) $510.3 $426.1 $426.2 $475.9 • Record total originations, driven by strong $392.1 performance from our digital channel, $326.4 demand for our auto-secured products, and our 17 new branches opened since 2Q 24 • Achieved 10.5% ye
Slide 6: Increased ENR Per Branch is Driving Efficiency
Increased ENR Per Branch is Driving Efficiency • Our 17 new branches opened since 2Q 24 have generated $44.7MM, or 24.0%, of our $186.6MM year-over-year portfolio growth • Same store receivables grew 8.1% year-over-year, outpacing 2Q 24 year-over-year growth of 4.5% ENR Per Branch ($ in thousands) E
Slide 7: Revenue Up 10.1% on Accelerating Receivable Growth
Revenue Up 10.1% on Accelerating Receivable Growth Total Revenue ($ in millions) $154.8 $153.0 $157.4 $144.3 $143.0 $146.3 Other Income Insurance Income • Record total revenue of Interest and Fee Income $157.4MM grew 10.1% year- over-year 1Q 24 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 Sequential Δ 1.9% (0.9%)
Slide 8: Credit Improvement Year-Over-Year
Credit Improvement Year-Over-Year 30+ & 90+ Delinquency Rates ($ in millions) $145.8 $134.0 $129.4 11.8% $124.2 $122.7 $126.0 $72.2 $61.6 $64.3 9.8% 30-89 Days $55.4 $62.6 $63.0 7.8% • Delinquency rate improved 50 90-179 Days 6.9% 7.7% 7.1% bps sequentially and 30 bps 7.1% 6.9% 6.6% 90+ DQ % 5.8% ye
Slide 9: Reserved For Stressed Credit Losses
Reserved For Stressed Credit Losses • In 2Q 25, we increased our allowance for credit losses by $3.7MM due to portfolio growth partially offset by a lower rate of 10.3% from a release of remaining hurricane reserves against the related losses in 2Q 25. • We are required to reserve for expected lifet
Slide 10: Continued Focus on Operating Leverage & Tight Expense Control
Continued Focus on Operating Leverage & Tight Expense Control • Our operating expense ratio reached an all-time best of 13.2%, improving 60 bps year-over-year, despite investment in innovation and growth, including 17 new branches opened since 2Q 24 • Year-over-year total revenue growth outpaced G&A
Slide 11: Cost of Funds
Cost of Funds • Cost of funds increased 20 bps year-over-year due to increased average debt and the maturation of lower-cost, fixed-rate debt • Cost of funds has remained consistent the last several quarters due to effective treasury management Interest Expense ($ in millions) $19.8 $20.4 $19.4 $19.
Slide 12: Strong Funding Profile
Strong Funding Profile Unused Capacity ($ in millions) $555 $552 $534 $466 • Total unused capacity was $534MM (subject to borrowing base) as of June 30, 2025 • Available liquidity of $122MM as of June 30, 2025 2022 2023 2024 2Q 25 • Fixed-rate debt represented 84% of total debt as of Fixed vs. Varia
Slide 13: Excess Capital Consistently Returned to Stockholders
Excess Capital Consistently Returned to Stockholders 12.8% Capital Generation CAGR (+$356MM) Total Capital, Net of Capital Return $735.3 Total Capital and Capital Return $708.4 Capital Return $645.7 of $170MM $611.5 $556.6 $565.8 7.5% $533.7 $509.7 CAGR $487.4 (+$187MM) $436.4 $442.0 $422.1 • Capita
Slide 14: 2Q 25 Results and Outlook
2Q 25 Results and Outlook • Full year net income outlook range of $42MM - $45MM and a minimum of 10% year-over-year receivable growth Key Metrics 2Q 25 Results 3Q 25 Outlook Net Income $10.1MM ~$14.5MM ENR Growth $70.0MM ~$55.0 - $60.0MM ANR Growth $23.8MM ~$75.0MM 50 bps Total Revenue Yield ~32.8%
Slide 15: Appendix
Appendix CRRRONAL 15
Slide 16: Digitally Sourced Originations – Record High
Digitally Sourced Originations – Record High • Record high digital volume driven by seasonal demand and geographic expansion • Digital volume represented 32.2% of our total new borrower volume • Large loans represented 76.3% of new borrower digitally sourced loans booked in 2Q 25 Digitally Sourced O
Slide 17: Diversified Liquidity Profile
Diversified Liquidity Profile • Long history of liquidity support from a strong group of banking partners • Diversified funding platform with a senior revolving facility, warehouse facilities, and securitizations Senior Revolver Warehouse Facilities Private Securitization Securitizations Size $355MM
Slide 18: Consolidated Income Statements
Consolidated Income Statements $ in thousands 2Q 25 2Q 24 2024 2023 2022 2021 Revenue Interest and fee income $ 140,695 $ 127,898 $ 528,894 $ 489,698 $ 450,854 $ 382,544 Insurance income, net 11,499 10,507 40,695 44,529 43,502 35,482 Other income 5,248 4,620 18,914 17,172 12,831 10,325 Total revenue
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets $ in thousands 2Q 25 2Q 24 2024 2023 2022 2021 Cash $ 4,272 $ 4,323 $ 3,951 $ 4,509 $ 3,873 $ 10,507 Net finance receivables 1,960,364 1,773,743 1,892,535 1,771,410 1,699,393 1,426,257 Unearned insurance premiums (49,046) (46,081) (48,068) (47,892) (51,008) (47,837) Allow
Slide 20: Non-GAAP Financial Measures
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 enhan
Slide 21: Non-GAAP Financial Measures (Cont’d)
Non-GAAP Financial Measures (Cont’d) $ in millions 2020 2021 2022 2023 2024 1Q 25 2Q 25 YTD 25 Beginning stockholders' equity $ 256.9 $ 272.1 $ 282.7 $ 308.6 $ 322.3 $ 357.1 $ 357.9 $ 357.1 Ending stockholders' equity 272.1 282.7 308.6 322.3 357.1 357.9 363.0 363.0 Change in stockholders' equity 15.
Slide 22: Non-GAAP Financial Measures (Cont’d)
Non-GAAP Financial Measures (Cont’d) $ in thousands 2Q 25 2Q 24 2024 2023 2022 2021 Total assets $ 1,967,131 $ 1,789,052 $ 1,909,109 $ 1,794,527 $ 1,724,987 $ 1,459,662 Less: intangible assets 28,810 19,264 24,524 15,846 12,122 9,517 Tangible assets (non-GAAP) 1,938,321 1,769,788 1,884,585 1,778,681
Slide 23: Glossary
Glossary • Allowance for credit loss rate – allowance for credit losses as a percentage of ending net finance receivables • ANR – average net finance receivables • Bps – basis points • Capital generation – the year-to-date change in total capital and capital return from the prior year-end • Cost of
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