Regional Management Corp. · NYSE:RM
Regional Management — Q1 2026 Earnings Presentation
23 slides from Regional Management's earnings presentation, Apr 29, 2026
Slide 1: 1Q 26 Earnings Presentation
1Q 26 Earnings Presentation April 29, 2026
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: 1Q 26 Highlights
1Q 26 Highlights Portfolio Trends Operating Effectiveness Returns $214MM ENR Growth YoY 7.2% 30+ DQ % $1.18 Diluted Earnings Per Share Up 11.3% YoY Up 10 bps YoY Up 68.6% YoY $36MM Sequential ENR Liquidation 12.5% Net Credit Loss Rate 12.2% ROE / 2.2% ROA In line with seasonal norms Up 10 bps YoY Up
Slide 4: 1Q 26 Financial Highlights
1Q 26 Financial Highlights $ Chg % Chg Significant improvement across $ in millions (except per share amounts) 1Q 26 1Q 25 B/(W) B/(W) key financial metrics: Total revenue $ 167.3 $ 153.0 $ 14.3 9.4% Provision for credit losses 64.9 58.0 (6.9) (11.9%) • Net income up $4.4MM or 62.7% YoY G&A expense
Slide 5: Responsible Portfolio Growth
Responsible Portfolio Growth Quarterly Origination Trend ($ in millions) $522.3 $537.3 $510.3 $475.9 $392.1 $388.0 • Total originations down 1.1% from 1Q 25 Total Originations due to a stronger tax refund season and Average FICO 640 641 638 640 639 639 disciplined underwriting • Average FICO relativ
Slide 6: Increased ENR Per Branch is Driving Efficiency
Increased ENR Per Branch is Driving Efficiency • 10 new branches opened since 1Q 25 have generated $16.2MM, or 7.6%, of the $213.7MM YoY portfolio growth • Same store receivables grew 10.7% YoY, outpacing 1Q 25 YoY growth of 6.5% ENR Per Branch ($ in thousands) ENR Per Branch (1Q 25) ENR Per Branch
Slide 7: Revenue Up 9.4% on Receivable Growth
Revenue Up 9.4% on Receivable Growth Total Revenue ($ in millions) $165.5 $169.7 $167.3 $154.8 $153.0 $157.4 Other Income Insurance Income Interest and Fee Income • Record total revenue for a first 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 1Q 26 quarter of $167.3MM Sequential Δ 5.8% (1.2%) 2.9% 5.1% 2.5% (1.4%)
Slide 8: Recent Credit Trends
Recent Credit Trends 30+ & 90+ DQ% ($ in millions) $161.2 11.8% $150.9 $145.8 $144.3 $78.4 $134.0 $129.4 $67.5 9.8% $72.2 $72.0 $61.6 $64.3 30-89 Days 7.8% 7.7% 7.5% 7.2% 90-179 Days 7.1% 7.0% 6.6% 5.8% 90+ DQ % • 1Q 26 delinquency of 7.2% and net 30+ DQ % 3.9% 3.8% 3.9% 4.0% 3.8% credit loss rate o
Slide 9: Reserves For Credit Losses
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 lifetim
Slide 10: Improving Operating Leverage While Investing in Our Business
Improving Operating Leverage While Investing in Our Business • 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 $14.3M
Slide 11: Cost of Funds
Cost of Funds • Cost of funds increased 10 bps YoY due to increased average debt and the maturation of lower-cost, fixed-rate debt Interest Expense ($ in millions) $22.6 $22.9 $22.0 $19.8 $19.8 $20.4 Interest Expense 4.2% 4.2% 4.2% 4.4% 4.3% 4.3% Cost of Funds Cost of Funds 4Q 24 1Q 25 2Q 25 3Q 25 4
Slide 12: Strong Funding Profile
Strong Funding Profile Unused Capacity ($ in millions) $552 • Total unused capacity was $516MM (subject to borrowing $466 $511 $516 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 2023 2024 2025 1Q 26 31, 202
Slide 13: Excess Capital Consistently Returned to Stockholders
Excess Capital Consistently Returned to Stockholders 12.4% Capital Generation CAGR (+$358MM)(1) Total Capital, Net of Capital Return $779.7 Total Capital and Capital Return (1) $767.8 Capital Return (2) $694.1 of $184MM $631.4 $597.2 $594.0 $595.3 $556.6 6.8% $519.4 $509.7 CAGR $487.4 (+$173MM) $442
Slide 14: 2026 Earnings Drivers
2026 Earnings Drivers 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 Liquidation of $36MM Originations & Soft loan demand and higher Growth Growth Growth Loan Growth payment/payoff activi
Slide 15: Appendix
Appendix CRRRONAL 15
Slide 16: Digitally Sourced Originations
Digitally Sourced Originations • 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 borr
Slide 17: Consolidated Income Statements
Consolidated Income Statements $ in thousands 1Q 26 1Q 25 2025 2024 2023 2022 Revenue Interest and fee income $ 150,296 $ 136,553 $ 578,949 $ 528,894 $ 489,698 $ 450,854 Insurance income, net 11,810 11,297 45,573 40,695 44,529 43,502 Other income 5,184 5,117 21,076 18,914 17,172 12,831 Total revenue
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets $ in thousands 1Q 26 1Q 25 2025 2024 2023 2022 Cash $ 4,859 $ 4,158 $ 3,823 $ 3,951 $ 4,509 $ 3,873 Net finance receivables 2,104,001 1,890,351 2,140,199 1,892,535 1,771,410 1,699,393 Unearned insurance premiums (51,044) (47,107) (52,896) (48,068) (47,892) (51,008) Allowa
Slide 19: 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 20: Non-GAAP Financial Measures (Cont’d)
Non-GAAP Financial Measures (Cont’d) $ in millions 2021 2022 2023 2024 2025 1Q 26 Cumulative (1) Capital and cumulative capital return: Stockholders' equity $ 282.7 $ 308.6 $ 322.3 $ 357.1 $ 373.1 $ 375.8 $ 103.7 Allowance for credit losses 159.3 178.8 187.4 199.5 220.9 219.5 69.5 Total capital $ 44
Slide 21: Non-GAAP Financial Measures (Cont’d)
Non-GAAP Financial Measures (Cont’d) $ in thousands 1Q 26 2025 2024 2023 2022 Debt $ 1,621,398 $ 1,650,764 $ 1,478,336 $ 1,399,814 $ 1,355,359 Total stockholders' equity 375,849 373,092 357,078 322,273 308,633 Less: intangible assets 33,172 31,781 24,524 15,846 12,122 Tangible equity (non-GAAP) $ 34
Slide 22: Glossary
Glossary • 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 – bas
Slide 23: EREGIONAL =: rae
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