Regional Management Corp. Announces Second Quarter 2026 Results
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
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:
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.
Regional Management Corp. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
(dollars in thousands, except per share amounts)
Better (Worse)
Better (Worse)
2Q 26
2Q 25
$
%
YTD 26
YTD 25
$
%
Revenue
Interest and fee income
$
150,278
$
140,695
$
9,583
6.8
%
$
300,574
$
277,248
$
23,326
8.4
%
Insurance income, net
10,976
11,499
(523
)
(4.5
)%
22,786
22,796
(10
)
—
Other income
6,752
5,248
1,504
28.7
%
11,936
10,365
1,571
15.2
%
Total revenue
168,006
157,442
10,564
6.7
%
335,296
310,409
24,887
8.0
%
Expenses
Provision for credit losses
69,006
60,587
(8,419
)
(13.9
)%
133,874
118,579
(15,295
)
(12.9
)%
Personnel
39,433
38,584
(849
)
(2.2
)%
78,775
79,726
951
1.2
%
Occupancy
7,252
6,911
(341
)
(4.9
)%
14,731
13,817
(914
)
(6.6
)%
Marketing
4,889
5,059
170
3.4
%
9,070
10,465
1,395
13.3
%
Other
13,870
12,391
(1,479
)
(11.9
)%
27,532
24,980
(2,552
)
(10.2
)%
Total general and administrative
65,444
62,945
(2,499
)
(4.0
)%
130,108
128,988
(1,120
)
(0.9
)%
Interest expense
22,993
20,426
(2,567
)
(12.6
)%
45,916
40,197
(5,719
)
(14.2
)%
Income before income taxes
10,563
13,484
(2,921
)
(21.7
)%
25,398
22,645
2,753
12.2
%
Income taxes
2,410
3,344
934
27.9
%
5,844
5,498
(346
)
(6.3
)%
Net income
$
8,153
$
10,140
$
(1,987
)
(19.6
)%
$
19,554
$
17,147
$
2,407
14.0
%
Net income per common share:
Basic
$
0.91
$
1.07
$
(0.16
)
(15.0
)%
$
2.15
$
1.79
$
0.36
20.1
%
Diluted
$
0.85
$
1.03
$
(0.18
)
(17.5
)%
$
2.03
$
1.73
$
0.30
17.3
%
Weighted-average common shares outstanding:
Basic
8,988
9,504
516
5.4
%
9,075
9,556
481
5.0
%
Diluted
9,604
9,843
239
2.4
%
9,633
9,934
301
3.0
%
Return on average assets (annualized)
1.6
%
2.1
%
1.9
%
1.8
%
Return on average equity (annualized)
8.7
%
11.3
%
10.4
%
9.6
%
Regional Management Corp. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands, except par value amounts)
Increase (Decrease)
2Q 26
2Q 25
$
%
Assets
Cash
$
6,799
$
4,272
$
2,527
59.2
%
Net finance receivables
2,148,253
1,960,364
187,889
9.6
%
Unearned insurance premiums
(50,713
)
(49,046
)
(1,667
)
(3.4
)%
Allowance for credit losses
(224,000
)
(202,800
)
(21,200
)
(10.5
)%
Net finance receivables, less unearned insurance premiums and allowance for credit losses
1,873,540
1,708,518
165,022
9.7
%
Restricted cash
111,776
117,658
(5,882
)
(5.0
)%
Lease assets
45,084
42,665
2,419
5.7
%
Intangible assets
34,634
28,810
5,824
20.2
%
Restricted available-for-sale investments
24,206
22,122
2,084
9.4
%
Property and equipment
13,044
13,328
(284
)
(2.1
)%
Deferred tax assets, net
—
8,367
(8,367
)
(100.0
)%
Other assets
20,511
21,391
(880
)
(4.1
)%
Total assets
$
2,129,594
$
1,967,131
$
162,463
8.3
%
Liabilities and Stockholders’ Equity
Liabilities:
Debt
$
1,675,942
$
1,509,133
$
166,809
11.1
%
Unamortized debt issuance costs
(5,617
)
(6,862
)
1,245
18.1
%
Net debt
1,670,325
1,502,271
168,054
11.2
%
Lease liabilities
47,241
44,768
2,473
5.5
%
Deferred tax liabilities, net
2,588
—
2,588
100.0
%
Accounts payable and accrued expenses
31,109
57,141
(26,032
)
(45.6
)%
Total liabilities
1,751,263
1,604,180
147,083
9.2
%
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, 15,298 shares issued and 9,340 shares outstanding at June 30, 2026 and 15,225 shares issued and 9,962 shares outstanding at June 30, 2025)
1,530
1,522
8
0.5
%
Additional paid-in capital
142,805
137,129
5,676
4.1
%
Retained earnings
424,469
389,557
34,912
9.0
%
Accumulated other comprehensive loss
(49
)
(2
)
(47
)
(2,350.0
)%
Treasury stock (5,958 shares at June 30, 2026 and 5,263 shares at
June 30, 2025)
(190,424
)
(165,255
)
(25,169
)
(15.2
)%
Total stockholders’ equity
378,331
362,951
15,380
4.2
%
Total liabilities and stockholders’ equity
$
2,129,594
$
1,967,131
$
162,463
8.3
%
Regional Management Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
(dollars in thousands, except per share amounts)
Net Finance Receivables
2Q 26
1Q 26
QoQ $
Inc (Dec)
QoQ %
Inc (Dec)
2Q 25
YoY $
Inc (Dec)
YoY %
Inc (Dec)
Large loans
$
1,659,685
$
1,591,528
$
68,157
4.3
%
$
1,413,367
$
246,318
17.4
%
Small loans
488,568
512,473
(23,905
)
(4.7
)%
546,997
(58,429
)
(10.7
)%
Total
$
2,148,253
$
2,104,001
$
44,252
2.1
%
$
1,960,364
$
187,889
9.6
%
Number of branches
357
355
2
0.6
%
352
5
1.4
%
Net finance receivables per branch
$
6,018
$
5,927
$
91
1.5
%
$
5,569
$
449
8.1
%
Average Net Finance Receivables
2Q 26
1Q 26
QoQ $
Inc (Dec)
QoQ %
Inc (Dec)
2Q 25
YoY $
Inc (Dec)
YoY %
Inc (Dec)
Large loans
$
1,620,686
$
1,592,493
$
28,193
1.8
%
$
1,372,783
$
247,903
18.1
%
Small loans
494,693
531,037
(36,344
)
(6.8
)%
540,106
(45,413
)
(8.4
)%
Total
$
2,115,379
$
2,123,530
$
(8,151
)
(0.4
)%
$
1,912,889
$
202,490
10.6
%
Revenue Yields (1)
2Q 26
1Q 26
QoQ
Inc (Dec)
2Q 25
YoY
Inc (Dec)
Large loans
26.6
%
26.3
%
0.3
%
26.6
%
0.0
%
Small loans
34.3
%
34.3
%
0.0
%
36.5
%
(2.2
)%
Total interest and fee yield
28.4
%
28.3
%
0.1
%
29.4
%
(1.0
)%
Total revenue yield
31.8
%
31.5
%
0.3
%
32.9
%
(1.1
)%
(1)
Components of Increase in Interest and Fee Income
2Q 26 Compared to 2Q 25
Increase (Decrease)
Volume
Rate
Volume & Rate
Total
Large loans
$
16,516
$
(95
)
$
(18
)
$
16,403
Small loans
(4,140
)
(2,926
)
246
(6,820
)
Product mix
2,517
(1,781
)
(736
)
—
Total
$
14,893
$
(4,802
)
$
(508
)
$
9,583
Loans Originated (1)
2Q 26
1Q 26
QoQ $
Inc (Dec)
QoQ %
Inc (Dec)
2Q 25
YoY $
Inc (Dec)
YoY %
Inc (Dec)
Large loans
$
371,319
$
265,460
$
105,859
39.9
%
$
336,473
$
34,846
10.4
%
Small loans
132,316
122,493
9,823
8.0
%
173,856
(41,540
)
(23.9
)%
Total
$
503,635
$
387,953
$
115,682
29.8
%
$
510,329
$
(6,694
)
(1.3
)%
(1)
Other Key Metrics
2Q 26
1Q 26
2Q 25
Net credit losses
$
64,506
$
66,268
$
56,887
Percentage of average net finance receivables (annualized)
12.2
%
12.5
%
11.9
%
Provision for credit losses
$
69,006
$
64,868
$
60,587
Percentage of average net finance receivables (annualized)
13.0
%
12.2
%
12.7
%
Percentage of total revenue
41.1
%
38.8
%
38.5
%
General and administrative expenses
$
65,444
$
64,664
$
62,945
Percentage of average net finance receivables (annualized)
12.4
%
12.2
%
13.2
%
Percentage of total revenue
39.0
%
38.7
%
40.0
%
Same store results (1):
Net finance receivables at period-end
$
2,135,915
$
2,087,752
$
1,915,667
Net finance receivable growth rate
9.0
%
10.7
%
8.1
%
Number of branches in calculation
345
345
335
(1)
Contractual Delinquency
2Q 26
1Q 26
2Q 25
Allowance for credit losses
$
224,000
10.4
%
$
219,500
10.4
%
$
202,800
10.3
%
Current
1,824,145
84.9
%
1,801,192
85.6
%
1,672,027
85.3
%
1 to 29 days past due
174,752
8.1
%
151,875
7.2
%
158,951
8.1
%
Delinquent accounts:
30 to 59 days
40,971
2.0
%
35,235
1.7
%
35,362
1.8
%
60 to 89 days
32,763
1.5
%
32,251
1.5
%
28,949
1.5
%
90 to 119 days
26,497
1.2
%
28,331
1.4
%
22,348
1.1
%
120 to 149 days
24,404
1.1
%
27,198
1.3
%
21,625
1.1
%
150 to 179 days
24,721
1.2
%
27,919
1.3
%
21,102
1.1
%
Total delinquency
$
149,356
7.0
%
$
150,934
7.2
%
$
129,386
6.6
%
Total net finance receivables
$
2,148,253
100.0
%
$
2,104,001
100.0
%
$
1,960,364
100.0
%
Contractual Delinquency by Product
2Q 26
1Q 26
2Q 25
Large loans
$
97,228
5.9
%
$
95,192
6.0
%
$
76,690
5.4
%
Small loans
52,128
10.7
%
55,742
10.9
%
52,696
9.6
%
Total
$
149,356
7.0
%
$
150,934
7.2
%
$
129,386
6.6
%
Income Statement Quarterly Trend
2Q 25
3Q 25
4Q 25
1Q 26
2Q 26
QoQ $
B(W)
YoY $
B(W)
Revenue
Interest and fee income
$
140,695
$
148,672
$
153,029
$
150,296
$
150,278
$
(18
)
$
9,583
Insurance income, net
11,499
11,391
11,386
11,810
10,976
(834
)
(523
)
Other income
5,248
5,424
5,287
5,184
6,752
1,568
1,504
Total revenue
157,442
165,487
169,702
167,290
168,006
716
10,564
Expenses
Provision for credit losses
60,587
60,474
66,379
64,868
69,006
(4,138
)
(8,419
)
Personnel
38,584
39,517
40,394
39,342
39,433
(91
)
(849
)
Occupancy
6,911
7,160
7,227
7,479
7,252
227
(341
)
Marketing
5,059
4,212
3,874
4,181
4,889
(708
)
170
Other
12,391
13,179
13,024
13,662
13,870
(208
)
(1,479
)
Total general and administrative
62,945
64,068
64,519
64,664
65,444
(780
)
(2,499
)
Interest expense
20,426
21,971
22,646
22,923
22,993
(70
)
(2,567
)
Income before income taxes
13,484
18,974
16,158
14,835
10,563
(4,272
)
(2,921
)
Income taxes
3,344
4,618
3,249
3,434
2,410
1,024
934
Net income
$
10,140
$
14,356
$
12,909
$
11,401
$
8,153
$
(3,248
)
$
(1,987
)
Net income per common share:
Basic
$
1.07
$
1.53
$
1.40
$
1.24
$
0.91
$
(0.33
)
$
(0.16
)
Diluted
$
1.03
$
1.42
$
1.30
$
1.18
$
0.85
$
(0.33
)
$
(0.18
)
Weighted-average shares outstanding:
Basic
9,504
9,370
9,233
9,163
8,988
175
516
Diluted
9,843
10,133
9,941
9,662
9,604
58
239
Balance Sheet & Other Key Metrics Quarterly Trends
2Q 25
3Q 25
4Q 25
1Q 26
2Q 26
QoQ $
Inc (Dec)
YoY $
Inc (Dec)
Total assets
$
1,967,131
$
2,028,266
$
2,103,930
$
2,072,750
$
2,129,594
$
56,844
$
162,463
Net finance receivables
$
1,960,364
$
2,053,017
$
2,140,199
$
2,104,001
$
2,148,253
$
44,252
$
187,889
Allowance for credit losses
$
202,800
$
212,000
$
220,900
$
219,500
$
224,000
$
4,500
$
21,200
Debt
$
1,509,133
$
1,581,992
$
1,650,764
$
1,621,398
$
1,675,942
$
54,544
$
166,809
Interest and fee yield (1)
29.4
%
29.7
%
29.3
%
28.3
%
28.4
%
0.1
%
(1.0
)%
Efficiency ratio (2)
40.0
%
38.7
%
38.0
%
38.7
%
39.0
%
0.3
%
(1.0
)%
Operating expense ratio (3)
13.2
%
12.8
%
12.4
%
12.2
%
12.4
%
0.2
%
(0.8
)%
Delinquency rate (4)
6.6
%
7.0
%
7.5
%
7.2
%
7.0
%
(0.2
)%
0.4
%
Net credit loss rate (5)
11.9
%
10.2
%
11.0
%
12.5
%
12.2
%
(0.3
)%
0.3
%
Book value per share
$
36.43
$
37.94
$
39.05
$
40.25
$
40.51
$
0.26
$
4.08
(1)
(2)
(3)
(4)
(5)
Average Net Finance Receivables
YTD 26
YTD 25
YoY $
Inc (Dec)
YoY %
Inc (Dec)
Large loans
$
1,606,667
$
1,356,543
$
250,124
18.4
%
Small loans
512,765
544,520
(31,755
)
(5.8
)%
Total
$
2,119,432
$
1,901,063
$
218,369
11.5
%
Revenue Yields (1)
YTD 26
YTD 25
YoY
Inc (Dec)
Large loans
26.5
%
26.4
%
0.1
%
Small loans
34.3
%
36.2
%
(1.9
)%
Total interest and fee yield
28.4
%
29.2
%
(0.8
)%
Total revenue yield
31.6
%
32.7
%
(1.1
)%
(1)
Components of Increase in Interest and Fee Income
YTD 26 Compared to YTD 25
Increase (Decrease)
Volume
Rate
Volume & Rate
Total
Large loans
$
32,968
$
687
$
126
$
33,781
Small loans
(5,741
)
(5,006
)
292
(10,455
)
Product mix
4,620
(3,324
)
(1,296
)
—
Total
$
31,847
$
(7,643
)
$
(878
)
$
23,326
Loans Originated (1)
YTD 26
YTD 25
YTD $
Inc (Dec)
YTD %
Inc (Dec)
Large loans
$
636,779
$
578,282
$
58,497
10.1
%
Small loans
254,809
324,167
(69,358
)
(21.4
)%
Total
$
891,588
$
902,449
$
(10,861
)
(1.2
)%
(1)
Other Key Metrics
YTD 26
YTD 25
Net credit losses
$
130,774
$
115,279
Percentage of average net finance receivables (annualized)
12.3
%
12.1
%
Provision for credit losses
$
133,874
$
118,579
Percentage of average net finance receivables (annualized)
12.6
%
12.5
%
Percentage of total revenue
39.9
%
38.2
%
General and administrative expenses
$
130,108
$
128,988
Percentage of average net finance receivables (annualized)
12.3
%
13.6
%
Percentage of total revenue
38.8
%
41.6
%
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.
2Q 26
Debt
$
1,675,942
Total stockholders' equity
378,331
Less: Intangible assets
34,634
Tangible equity (non-GAAP)
$
343,697
Funded debt-to-equity ratio
4.4
x
Funded debt-to-tangible equity ratio (non-GAAP)
4.9
x