Regional Management Corp. Announces First Quarter 2026 Results
GREENVILLE, S.C.--( BUSINESS WIRE)--Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the first quarter ended March 31, 2026.
“We delivered a strong start to 2026, with solid financial results, continued year-over-year portfolio growth, and further improvement in operating efficiency,” said Lakhbir S. Lamba, President and Chief Executive Officer of Regional Management Corp. “First quarter diluted EPS increased 69% year-over-year, driven by disciplined execution, stable credit performance, and the scalability of our operating model.”
“We continue to make good progress on our strategic priorities, including expanding our auto-secured portfolio, entering new markets, and advancing our bank partnership with Column,” added Mr. Lamba. “Early results from the partnership are encouraging, and we believe it will enhance our ability to grow the business, broaden our product offerings, and improve risk-adjusted returns over time.”
“Looking ahead, we remain focused on responsible portfolio growth, improving credit performance, and driving operating leverage,” continued Mr. Lamba. “We are confident in our outlook for 2026 and our ability to deliver sustainable, profitable growth and increasing returns for our shareholders.”
First Quarter 2026 Highlights
Second Quarter 2026 Dividend
The company’s Board of Directors has declared a dividend of $0.30 per common share for the second quarter of 2026. The dividend will be paid on June 10, 2026 to shareholders of record as of the close of business on May 20, 2026. The declaration and payment of any future dividend is subject to the discretion of the Board of Directors and will depend on a variety of factors, including the company’s financial condition and results of operations.
Liquidity and Capital Resources
As of March 31, 2026, the company had net finance receivables of $2.1 billion and debt of $1.6 billion. The debt consisted of:
As of March 31, 2026, the company’s unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was $516 million, or 66.1%, and the company had available liquidity of $135.6 million, including unrestricted cash on hand and immediate availability to draw down cash from its revolving credit facilities. As of March 31, 2026, the company’s fixed-rate debt as a percentage of total debt was 84%, with a weighted-average coupon of 4.7%.
The company had a funded debt-to-equity ratio of 4.3 to 1.0 and a stockholders’ equity ratio of 18.1%, each as of March 31, 2026. On a non-GAAP basis, the company had a funded debt-to-tangible equity ratio of 4.7 to 1.0, as of March 31, 2026. Please refer to the reconciliations of non-GAAP measures to comparable GAAP measures included at the end of this press release.
Conference Call Information
Regional Management Corp. will host a conference call and webcast today at 5:00 PM ET to discuss these results.
The dial-in number for the conference call is (877) 407-0752 (toll-free) or (201) 389-0912 (international). Please dial the number 10 minutes prior to the scheduled start time.
*** A supplemental slide presentation will be made available on Regional’s website prior to the earnings call at www.RegionalManagement.com. ***
In addition, a live webcast of the conference call will be available on Regional’s website at www.RegionalManagement.com.
A webcast replay of the call will be available at www.RegionalManagement.com for one year following the call.
About Regional Management Corp.
Regional Management Corp. (NYSE: RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name “Regional Finance” online and in branch locations in 19 states across the United States. Each of its loan products is structured on a fixed-rate, fixed-term basis with fully amortizing equal monthly installment payments, repayable at any time without penalty. Regional Management sources loans through its multiple channel platform, which includes branches, centrally managed direct mail campaigns, digital partners, and its consumer website. For more information, please visit www.RegionalManagement.com.
Forward-Looking Statements
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead represent Regional Management Corp.’s expectations or beliefs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlooks or future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “outlook,” and similar expressions may be used to identify these forward-looking statements. Such forward-looking statements speak only as of the date on which they were made and are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. As a result, actual performance and results may differ materially from those contemplated by these forward-looking statements. Therefore, investors should not place undue reliance on forward-looking statements.
Factors that could cause actual results or performance to differ from the expectations expressed or implied in forward-looking statements include, but are not limited to, the following: managing growth effectively, implementing Regional Management’s growth strategy, and opening new branches as planned; Regional Management’s convenience check strategy; Regional Management’s policies and procedures for underwriting, processing, and servicing loans; Regional Management’s ability to collect on its loan portfolio; Regional Management’s insurance operations; exposure to credit risk and repayment risk, which risks may increase in light of adverse or recessionary economic conditions; the implementation of evolving underwriting models and processes, including as to the effectiveness of Regional Management's custom scorecards; changes in the competitive environment in which Regional Management operates or a decrease in the demand for its products; the geographic concentration of Regional Management’s loan portfolio; the failure of third-party service providers, including those providing information technology products; changes in economic conditions in the markets Regional Management serves, including levels of unemployment and bankruptcies; the ability to achieve successful acquisitions and strategic alliances; the ability to realize the anticipated benefits from our lending partnership with Column N.A.; the ability to make technological improvements as quickly as competitors; security breaches, cyber-attacks, failures in information systems, or fraudulent activity; the development and use of artificial intelligence; the ability to originate loans; reliance on information technology resources and providers, including the risk of prolonged system outages; changes in current revenue and expense trends, including trends affecting delinquencies and credit losses; any future public health crises, including the impact of such crisis on our operations and financial condition; changes in operating and administrative expenses; the departure, transition, or replacement of key personnel; the ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support Regional Management’s operations and initiatives; changes in interest rates; existing sources of liquidity may become insufficient or access to these sources may become unexpectedly restricted; exposure to financial risk due to asset-backed securitization transactions; risks related to regulation and legal proceedings, including changes in laws or regulations or in the interpretation or enforcement of laws or regulations; 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.
Regional Management Corp. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
(dollars in thousands, except per share amounts)
Better (Worse)
1Q 26
1Q 25
$
%
Revenue
Interest and fee income
$
150,296
$
136,553
$
13,743
10.1
%
Insurance income, net
11,810
11,297
513
4.5
%
Other income
5,184
5,117
67
1.3
%
Total revenue
167,290
152,967
14,323
9.4
%
Expenses
Provision for credit losses
64,868
57,992
(6,876
)
(11.9
)%
Personnel
39,342
41,142
1,800
4.4
%
Occupancy
7,479
6,906
(573
)
(8.3
)%
Marketing
4,181
5,406
1,225
22.7
%
Other
13,662
12,589
(1,073
)
(8.5
)%
Total general and administrative
64,664
66,043
1,379
2.1
%
Interest expense
22,923
19,771
(3,152
)
(15.9
)%
Income before income taxes
14,835
9,161
5,674
61.9
%
Income taxes
3,434
2,154
(1,280
)
(59.4
)%
Net income
$
11,401
$
7,007
$
4,394
62.7
%
Net income per common share:
Basic
$
1.24
$
0.73
$
0.51
69.9
%
Diluted
$
1.18
$
0.70
$
0.48
68.6
%
Weighted-average common shares outstanding:
Basic
9,163
9,610
447
4.7
%
Diluted
9,662
10,025
363
3.6
%
Return on average assets (annualized)
2.2
%
1.5
%
Return on average equity (annualized)
12.2
%
7.9
%
Regional Management Corp. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands, except par value amounts)
Increase (Decrease)
1Q 26
1Q 25
$
%
Assets
Cash
$
4,859
$
4,158
$
701
16.9
%
Net finance receivables
2,104,001
1,890,351
213,650
11.3
%
Unearned insurance premiums
(51,044
)
(47,107
)
(3,937
)
(8.4
)%
Allowance for credit losses
(219,500
)
(199,100
)
(20,400
)
(10.2
)%
Net finance receivables, less unearned insurance premiums and allowance for credit losses
1,833,457
1,644,144
189,313
11.5
%
Restricted cash
98,364
122,312
(23,948
)
(19.6
)%
Lease assets
44,174
40,699
3,475
8.5
%
Intangible assets
33,172
26,750
6,422
24.0
%
Restricted available-for-sale investments
24,390
21,687
2,703
12.5
%
Property and equipment
12,980
13,635
(655
)
(4.8
)%
Deferred tax assets, net
—
9,421
(9,421
)
(100.0
)%
Other assets
21,354
17,877
3,477
19.4
%
Total assets
$
2,072,750
$
1,900,683
$
172,067
9.1
%
Liabilities and Stockholders’ Equity
Liabilities:
Debt
$
1,621,398
$
1,477,860
$
143,538
9.7
%
Unamortized debt issuance costs
(7,048
)
(7,924
)
876
11.1
%
Net debt
1,614,350
1,469,936
144,414
9.8
%
Lease liabilities
46,324
42,788
3,536
8.3
%
Deferred tax liabilities, net
3,883
—
3,883
100.0
%
Accounts payable and accrued expenses
32,344
30,083
2,261
7.5
%
Total liabilities
1,696,901
1,542,807
154,094
10.0
%
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, 15,160 shares issued and 9,338 shares outstanding at March 31, 2026 and 15,187 shares issued and 10,088 shares outstanding at March 31, 2025)
1,516
1,519
(3
)
(0.2
)%
Additional paid-in capital
140,555
134,206
6,349
4.7
%
Retained earnings
419,197
382,532
36,665
9.6
%
Accumulated other comprehensive loss
(31
)
(171
)
140
81.9
%
Treasury stock (5,822 shares at March 31, 2026 and 5,098 shares at
March 31, 2025)
(185,388
)
(160,210
)
(25,178
)
(15.7
)%
Total stockholders’ equity
375,849
357,876
17,973
5.0
%
Total liabilities and stockholders’ equity
$
2,072,750
$
1,900,683
$
172,067
9.1
%
Regional Management Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
(dollars in thousands, except per share amounts)
Net Finance Receivables
1Q 26
4Q 25
QoQ $
Inc (Dec)
QoQ %
Inc (Dec)
1Q 25
YoY $
Inc (Dec)
YoY %
Inc (Dec)
Large loans
$
1,591,528
$
1,593,171
$
(1,643
)
(0.1
)%
$
1,345,825
$
245,703
18.3
%
Small loans
512,473
547,028
(34,555
)
(6.3
)%
544,526
(32,053
)
(5.9
)%
Total
$
2,104,001
$
2,140,199
$
(36,198
)
(1.7
)%
$
1,890,351
$
213,650
11.3
%
Number of branches
355
353
2
0.6
%
353
2
0.6
%
Net finance receivables per branch
$
5,927
$
6,063
$
(136
)
(2.2
)%
$
5,355
$
572
10.7
%
Average Net Finance Receivables
1Q 26
4Q 25
QoQ $
Inc (Dec)
QoQ %
Inc (Dec)
1Q 25
YoY $
Inc (Dec)
YoY %
Inc (Dec)
Large loans
$
1,592,493
$
1,552,956
$
39,537
2.5
%
$
1,340,122
$
252,371
18.8
%
Small loans
531,037
535,316
(4,279
)
(0.8
)%
548,983
(17,946
)
(3.3
)%
Total
$
2,123,530
$
2,088,272
$
35,258
1.7
%
$
1,889,105
$
234,425
12.4
%
Revenue Yields (1)
1Q 26
4Q 25
QoQ
Inc (Dec)
1Q 25
YoY
Inc (Dec)
Large loans
26.3
%
27.1
%
(0.8
)%
26.1
%
0.2
%
Small loans
34.3
%
35.8
%
(1.5
)%
35.9
%
(1.6
)%
Total interest and fee yield
28.3
%
29.3
%
(1.0
)%
28.9
%
(0.6
)%
Total revenue yield
31.5
%
32.5
%
(1.0
)%
32.4
%
(0.9
)%
(1)
Annualized as a percentage of average net finance receivables.
Components of Increase in Interest and Fee Income
1Q 26 Compared to 1Q 25
Increase (Decrease)
Volume
Rate
Volume & Rate
Total
Large loans
$
16,448
$
782
$
148
$
17,378
Small loans
(1,609
)
(2,095
)
69
(3,635
)
Product mix
2,106
(1,536
)
(570
)
—
Total
$
16,945
$
(2,849
)
$
(353
)
$
13,743
Loans Originated (1)
1Q 26
4Q 25
QoQ $
Inc (Dec)
QoQ %
Inc (Dec)
1Q 25
YoY $
Inc (Dec)
YoY %
Inc (Dec)
Large loans
$
265,460
$
364,194
$
(98,734
)
(27.1
)%
$
241,809
$
23,651
9.8
%
Small loans
122,493
173,122
(50,629
)
(29.2
)%
150,311
(27,818
)
(18.5
)%
Total
$
387,953
$
537,316
$
(149,363
)
(27.8
)%
$
392,120
$
(4,167
)
(1.1
)%
(1)
Represents the principal balance of loan originations, refinancings, and purchases.
Other Key Metrics
1Q 26
4Q 25
1Q 25
Net credit losses
$
66,268
$
57,479
$
58,392
Percentage of average net finance receivables (annualized)
12.5
%
11.0
%
12.4
%
Provision for credit losses
$
64,868
$
66,379
$
57,992
Percentage of average net finance receivables (annualized)
12.2
%
12.7
%
12.3
%
Percentage of total revenue
38.8
%
39.1
%
37.9
%
General and administrative expenses
$
64,664
$
64,519
$
66,043
Percentage of average net finance receivables (annualized)
12.2
%
12.4
%
14.0
%
Percentage of total revenue
38.7
%
38.0
%
43.2
%
Same store results (1):
Net finance receivables at period-end
$
2,087,752
$
2,087,903
$
1,858,140
Net finance receivable growth rate
10.7
%
10.9
%
6.5
%
Number of branches in calculation
345
336
336
(1)
Same store sales reflect the change in year-over-year sales for the comparable branch base. The comparable branch base includes those branches open for at least one year.
Contractual Delinquency
1Q 26
4Q 25
1Q 25
Allowance for credit losses
$
219,500
10.4
%
$
220,900
10.3
%
$
199,100
10.5
%
Current
1,801,192
85.6
%
1,809,107
84.5
%
1,624,072
85.9
%
1 to 29 days past due
151,875
7.2
%
169,858
8.0
%
132,302
7.0
%
Delinquent accounts:
30 to 59 days
35,235
1.7
%
41,235
1.9
%
32,790
1.8
%
60 to 89 days
32,251
1.5
%
37,158
1.7
%
28,778
1.5
%
90 to 119 days
28,331
1.4
%
30,818
1.5
%
24,204
1.3
%
120 to 149 days
27,198
1.3
%
27,765
1.3
%
22,866
1.2
%
150 to 179 days
27,919
1.3
%
24,258
1.1
%
25,339
1.3
%
Total delinquency
$
150,934
7.2
%
$
161,234
7.5
%
$
133,977
7.1
%
Total net finance receivables
$
2,104,001
100.0
%
$
2,140,199
100.0
%
$
1,890,351
100.0
%
1 day and over past due
$
302,809
14.4
%
$
331,092
15.5
%
$
266,279
14.1
%
Contractual Delinquency by Product
1Q 26
4Q 25
1Q 25
Large loans
$
95,192
6.0
%
$
99,956
6.3
%
$
79,401
5.9
%
Small loans
55,742
10.9
%
61,278
11.2
%
54,576
10.0
%
Total
$
150,934
7.2
%
$
161,234
7.5
%
$
133,977
7.1
%
Income Statement Quarterly Trend
1Q 25
2Q 25
3Q 25
4Q 25
1Q 26
QoQ $
B(W)
YoY $
B(W)
Revenue
Interest and fee income
$
136,553
$
140,695
$
148,672
$
153,029
$
150,296
$
(2,733
)
$
13,743
Insurance income, net
11,297
11,499
11,391
11,386
11,810
424
513
Other income
5,117
5,248
5,424
5,287
5,184
(103
)
67
Total revenue
152,967
157,442
165,487
169,702
167,290
(2,412
)
14,323
Expenses
Provision for credit losses
57,992
60,587
60,474
66,379
64,868
1,511
(6,876
)
Personnel
41,142
38,584
39,517
40,394
39,342
1,052
1,800
Occupancy
6,906
6,911
7,160
7,227
7,479
(252
)
(573
)
Marketing
5,406
5,059
4,212
3,874
4,181
(307
)
1,225
Other
12,589
12,391
13,179
13,024
13,662
(638
)
(1,073
)
Total general and administrative
66,043
62,945
64,068
64,519
64,664
(145
)
1,379
Interest expense
19,771
20,426
21,971
22,646
22,923
(277
)
(3,152
)
Income before income taxes
9,161
13,484
18,974
16,158
14,835
(1,323
)
5,674
Income taxes
2,154
3,344
4,618
3,249
3,434
(185
)
(1,280
)
Net income
$
7,007
$
10,140
$
14,356
$
12,909
$
11,401
$
(1,508
)
$
4,394
Net income per common share:
Basic
$
0.73
$
1.07
$
1.53
$
1.40
$
1.24
$
(0.16
)
$
0.51
Diluted
$
0.70
$
1.03
$
1.42
$
1.30
$
1.18
$
(0.12
)
$
0.48
Weighted-average shares outstanding:
Basic
9,610
9,504
9,370
9,233
9,163
70
447
Diluted
10,025
9,843
10,133
9,941
9,662
279
363
Balance Sheet & Other Key Metrics Quarterly Trends
1Q 25
2Q 25
3Q 25
4Q 25
1Q 26
QoQ $
Inc (Dec)
YoY $
Inc (Dec)
Total assets
$
1,900,683
$
1,967,131
$
2,028,266
$
2,103,930
$
2,072,750
$
(31,180
)
$
172,067
Net finance receivables
$
1,890,351
$
1,960,364
$
2,053,017
$
2,140,199
$
2,104,001
$
(36,198
)
$
213,650
Allowance for credit losses
$
199,100
$
202,800
$
212,000
$
220,900
$
219,500
$
(1,400
)
$
20,400
Debt
$
1,477,860
$
1,509,133
$
1,581,992
$
1,650,764
$
1,621,398
$
(29,366
)
$
143,538
Interest and fee yield (1)
28.9
%
29.4
%
29.7
%
29.3
%
28.3
%
(1.0
)%
(0.6
)%
Efficiency ratio (2)
43.2
%
40.0
%
38.7
%
38.0
%
38.7
%
0.7
%
(4.5
)%
Operating expense ratio (3)
14.0
%
13.2
%
12.8
%
12.4
%
12.2
%
(0.2
)%
(1.8
)%
Delinquency rate (4)
7.1
%
6.6
%
7.0
%
7.5
%
7.2
%
(0.3
)%
0.1
%
Net credit loss rate (5)
12.4
%
11.9
%
10.2
%
11.0
%
12.5
%
1.5
%
0.1
%
Book value per share
$
35.48
$
36.43
$
37.94
$
39.05
$
40.25
$
1.20
$
4.77
(1)
Annualized interest and fee income as a percentage of average net finance receivables.
(2)
General and administrative expenses as a percentage of total revenue.
(3)
Annualized general and administrative expenses as a percentage of average net finance receivables.
(4)
Delinquent loans outstanding as a percentage of ending net finance receivables.
(5)
Annualized net credit losses as a percentage of average net finance receivables.
Non-GAAP Financial Measures
In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. The company’s management utilizes non-GAAP measures as additional metrics to aid in, and enhance, its understanding of the company’s financial results. Tangible equity and the funded debt-to-tangible equity ratio are non-GAAP measures that adjust GAAP measures to exclude intangible assets. Management uses these equity measures to evaluate and manage the company’s capital and leverage position. The company also believes that these equity measures are commonly used in the financial services industry and provide useful information to users of the company’s financial statements in the evaluation of its capital and leverage position.
This non-GAAP financial information should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. In addition, the company’s non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies. The following tables provide a reconciliation of GAAP measures to non-GAAP measures.
1Q 26
Debt
$
1,621,398
Total stockholders' equity
375,849
Less: Intangible assets
33,172
Tangible equity (non-GAAP)
$
342,677
Funded debt-to-equity ratio
4.3
x
Funded debt-to-tangible equity ratio (non-GAAP)
4.7
x