Regional | 8-K: FY2025 Q4 Revenue: USD 169.7 M

Revenue: As of FY2025 Q4, the actual value is USD 169.7 M.EPS: As of FY2025 Q4, the actual value is USD 1.3, beating the estimate of USD 1.285.EBIT: As of FY2025 Q4, the actual value is USD 38.8 M.Outlook / GuidanceRegional Management Corp. enters 2026 from a position of strength, with confidence in its ability to continue creating long-term value for customers, communities, and shareholders . The company is encouraged by the strength of its platform and opportunities ahead, including rapid growth in its auto-secured portfolio and thoughtful expansion into new markets . Investments are being made in people, technology, data and analytics, and credit risk management to drive sustainable, profitable growth and higher return on equity .RevenueTotal revenue for the fourth quarter of 2025 was $169.7 million, an increase of $14.9 million or 9.6% from the prior-year period . This marked a record total revenue for the quarter .Interest and fee income was $153.0 million, up 10.7% year-over-year .Insurance income, net, was $11.4 million, down 3.4% year-over-year .Other income was $5.3 million, up 10.3% year-over-year .Total revenue for the full year 2025 was $645.6 million, up 9.7% year-over-year .The total revenue yield was down 90 basis points year-over-year, primarily due to a mix shift to larger loans .Net IncomeNet income for the fourth quarter of 2025 was $12.9 million, up 30.2% year-over-year .Net income for the full year 2025 was $44.4 million, up 7.7% year-over-year .Net Finance ReceivablesAs of December 31, 2025, net finance receivables totaled $2.1 billion, an improvement of $247.7 million or 13.1% from the prior-year period . This represents 13.1% year-over-year portfolio growth .Ending net finance receivables (ENR) saw a sequential growth of $87 million and a year-over-year growth of $248 million, or 13.1% .Large loan net finance receivables were $1.6 billion, an increase of $256.4 million or 19.2% from the prior-year period, representing 74.4% of the total loan portfolio (compared to 70.6% in the prior-year period) .Auto-secured net finance receivables were $294.3 million, an increase of $87.7 million or 42.4% from the prior-year period, representing 13.7% of the total loan portfolio (compared to 10.9% in the prior-year period) . The auto-secured portfolio grew to $294 million, an increase of $88 million or 42.4% year-over-year .Small loan net finance receivables were $547.0 million, a decrease of $8.7 million or 1.6% from the prior-year period, representing 25.6% of the total loan portfolio (compared to 29.4% in the prior-year period) .Net finance receivables with annual percentage rates (APRs) above 36% increased by 9.3% year-over-year, representing 17.9% of the portfolio (compared to 18.5% in the prior-year period) . The portfolio of loans with an APR greater than 36% grew $32.5 million, or 9.3%, and represented 17.9% of the total portfolio .ENR per branch increased by 10.2% year-over-year to $6.1 million .The 17 new branches opened since the fourth quarter of 2024 generated $52.3 million, or 21.1%, of the $247.7 million year-over-year portfolio growth .Same store receivables grew 10.9% year-over-year .OriginationsTotal originations for the fourth quarter of 2025 were a record $537.3 million, up 12.9% from the prior-year period . Origination volume was $537 million, up $61 million or 12.9% year-over-year .Large loans originations were $364.2 million, up 29.3% year-over-year .Small loans originations were $173.1 million, down 10.9% year-over-year .Total originations for the full year 2025 were $1,962.0 million, up 18.6% year-over-year . Originations increased by 18.6% year-over-year, totaling $2.0 billion .Digitally sourced origination volume increased year-over-year, representing 31.5% of total new borrower volume . Large loans accounted for 78.3% of new borrower digitally sourced loans booked in the fourth quarter of 2025 .Provision for Credit LossesProvision for credit losses for the fourth quarter of 2025 was $66.4 million, an increase of $8.8 million or 15.2% from the prior-year period, driven by portfolio growth .Provision for credit losses for the full year 2025 was $245.4 million, up 15.7% year-over-year .Net Credit Loss RateThe net credit loss rate for the fourth quarter of 2025 was 11.0% (annualized), a 20 basis point increase compared to 10.8% in the prior-year period . After adjusting for the fourth quarter of 2024 hurricane impact, it improved by 30 basis points year-over-year .The net credit loss rate for the full year 2025 was 11.4% (annualized), compared to 11.2% in the prior-year period .Allowance for Credit Losses (ACL)As of December 31, 2025, the allowance for credit losses was $220.9 million, or 10.3% of net finance receivables, which was stable sequentially and an improvement compared to 10.5% in the prior-year period . The ACL rate remained flat sequentially at 10.3%, compared to 10.5% in the prior year which included an estimated 10 basis points of hurricane impact .The ACL increased by $8.9 million in the fourth quarter of 2025 due to portfolio growth .30+ days past due loans of $161.2 million compared favorably to the ACL of $220.9 million as of the fourth quarter of 2025 .General and Administrative Expenses (G&A)G&A expenses for the fourth quarter of 2025 were $64.5 million, an improvement of $0.1 million from the prior-year period .G&A expenses for the full year 2025 were $257.6 million, up 4.0% year-over-year .Operating Expense RatioThe operating expense ratio for the fourth quarter of 2025 was 12.4% (annualized), an all-time best, reflecting improvements of 40 basis points and 160 basis points from 12.8% and 14.0% in the prior-quarter and prior-year periods, respectively . This 12.4% ratio represents a 160 basis point year-over-year improvement .The operating expense ratio for the full year 2025 was 13.1%, showing a 70 basis point improvement year-over-year .Interest ExpenseInterest expense for the fourth quarter of 2025 was $22.6 million, an increase of $2.8 million or 14.3% year-over-year .Interest expense for the full year 2025 was $84.8 million, up 13.8% year-over-year .DelinquencyAs of December 31, 2025, 30+ day contractual delinquencies totaled $161.2 million, or 7.5% of net finance receivables, a 50 basis point increase sequentially due to seasonality and a 20 basis point improvement from the prior-year period . The 30+ days delinquent percentage improved by 20 basis points year-over-year to 7.5% .Large loans delinquencies were $99.9 million or 6.3% .Small loans delinquencies were $61.3 million or 11.2% .Liquidity and Capital ResourcesAs of December 31, 2025, Regional Management Corp. had net finance receivables of $2.1 billion and total debt of $1.7 billion .The company had unused capacity to fund future growth on its revolving credit facilities of $511 million, or 65.6%, and available liquidity of $149.2 million . Available liquidity was $149 million .The funded debt-to-equity ratio was 4.4 to 1.0, and the stockholders’ equity ratio was 17.7% .Fixed-rate debt constituted 84% of total debt with a weighted average cost (WAC) of 4.7% .The fourth quarter of 2025 securitization WAC was 4.8%, a 50 basis point improvement from the first quarter of 2025 securitization WAC of 5.3% .Stock RepurchaseIn the fourth quarter of 2025, Regional Management Corp. repurchased 196,999 shares of common stock at a weighted-average price of $38.07 per share .Regional Management Corp. increased its share repurchase program from $30 million to $60 million .The company repurchased $24 million, or 702 thousand shares, of its common stock at a weighted-average price of $34.12 per share for the fiscal year .DividendOn February 4, 2026, Regional Management Corp.’s Board of Directors declared a quarterly cash dividend of $0.30 per share of outstanding common stock, payable on March 12, 2026 . A dividend of $0.30 per common share was declared for the first quarter of 2026 .Dividends of $1.20 per common share were distributed for the fiscal year 2025 .The dividend yield was 3.1% for the fiscal year 2025 and the fourth quarter of 2025 .Capital ManagementSince 2020, Regional Management Corp. has seen a total capital increase of $215 million and returned $188 million to stockholders .Total capital generated was $403 million, representing a 12.8% Compound Annual Growth Rate (CAGR) and a 21.4% ratio of capital generation to average stockholders’ equity .Year-to-date capital return was $36 million, and the increase in stockholders’ equity was $16 million .Year-to-date capital generation amounted to $74 million .Other Operational MetricsCustomer accounts reached 590,800, an increase of 2.7% year-over-year in the fourth quarter of 2025 .17 new branches were opened in 2025 .Return on Equity (ROE) was 13.8%, up 270 basis points year-over-year, and Return on Assets (ROA) was 2.5%, up 40 basis points year-over-year for the fourth quarter of 2025 .The cost of funds increased 10 basis points year-over-year due to increased average debt and the maturation of lower-cost, fixed-rate debt .