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What changed in Regional Management Corp.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Regional Management Corp.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+287 added−294 removedSource: 10-K (2026-02-20) vs 10-K (2025-02-21)

Top changes in Regional Management Corp.'s 2025 10-K

287 paragraphs added · 294 removed · 246 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

61 edited+8 added−9 removed110 unchanged
Biggest changeIndustry, Customers, and Purpose We operate in the consumer finance industry, in which consumers are generally described as super-prime (most creditworthy), prime, near-prime, non-prime, subprime, or deep-subprime (least creditworthy). Our customers typically have less-than-perfect credit profiles and, for that reason, are generally considered subprime, non-prime, or near-prime consumers.
Biggest changeIn 2025, 2024, and 2023, insurance income, net contributed $45.6 million, $40.7 million, and $44.5 million, respectively, to our total revenue. Industry, Customers, and Purpose We operate in the consumer finance industry, in which consumers are generally described as super-prime (most creditworthy), prime, near-prime, non-prime, subprime, or deep-subprime (least creditworthy).
In addition to the Dodd-Frank Act and state and local laws, regulations, and ordinances, numerous other federal laws and regulations affect our lending operations.
Other Federal Laws and Regulations. In addition to the Dodd-Frank Act and state and local laws, regulations, and ordinances, numerous other federal laws and regulations affect our lending operations.
Deceased borrower accounts are charged off in the month following the proper notification of passing, with the exception of borrowers with credit life insurance. We sell most of our charged-off accounts to third-party debt buyers. Information Technology We utilize a loan origination and servicing platform offered by Nortridge both to originate loans and to service our loan portfolio.
Deceased borrower accounts are charged off in the month following the proper notification of passing, with the exception of borrowers with credit life insurance. We sell most of our charged-off accounts to third-party debt buyers. Technology We utilize a loan origination and servicing platform offered by Nortridge to originate loans and to service our loan portfolio.
Borrowers who have signed up for online account access have on-demand access to their account information through Regional’s website and mobile app. In addition, borrowers may elect to receive automated, one-way text messages with information regarding their account, including payment reminders.
Borrowers who have signed up for online account access have on-demand access to their account information through Regional’s website and mobile app. In addition, borrowers may elect to receive automated text messages with information regarding their account, including payment reminders.
In the future, we will continue to assess new credit and non-credit products and services and expand the channels and partnerships through which we acquire customers. Maintain Sound Underwriting and Credit Control. We have invested heavily in our credit and collections functions.
In the future, we will continue to assess new credit and non-credit products and services and expand the channels and partnerships through which we acquire customers. Maintain Sound Underwriting and Credit Control. We have invested heavily in our credit, data and analytics, and collections functions.
The interest rates, fees and other charges, maximum principal amounts, and maturities for our loans vary from state to state, depending on the competitive environment and relevant laws and regulations. Large and small loans are originated by our branch network, by our centralized sales and service team, digitally through our consumer website, and through our convenience check direct mail campaigns.
The interest rates, fees and other charges, maximum principal amounts, and maturities for our loans vary from state to state, depending on the competitive environment and relevant laws and regulations. Large and small loans are originated by our branch network, by our centralized sales and service team, and through our convenience check direct mail campaigns.
As a result of this strategy, the net finance receivables per branch of branches open one to three years exceed that of branches open more than three years in the table above.
As a result of this strategy, the net finance receivables per branch of branches open one to five years exceed that of branches open more than five years in the table above.
The Dodd-Frank Act established the CFPB, which has regulatory, supervisory, and enforcement powers over providers of consumer financial products and services, Regional Management Corp. | 2024 Annual Report on Form 10-K | 14 including explicit supervisory authority to examine and require registration of non-depository lenders and to promulgate rules that can affect the practices and activities of lenders.
The Dodd-Frank Act established the CFPB, which has regulatory, supervisory, and enforcement powers over providers of consumer financial products and services, Regional Management Corp. | 2025 Annual Report on Form 10-K | 14 Table of Contents including explicit supervisory authority to examine and require registration of non-depository lenders and to promulgate rules that can affect the practices and activities of lenders.
In evaluating a loan for renewal, in addition to our standard underwriting requirements, we are able to take into consideration the customer’s prior payment performance with us, which we believe is a very strong indicator of the customer’s future credit performance. Regional Management Corp. | 2024 Annual Report on Form 10-K | 9 Large Loans.
In evaluating a loan for renewal, in addition to our standard underwriting requirements, we are able to take into consideration the customer’s prior payment performance with us, which we believe is a very strong indicator of the customer’s future credit performance. Regional Management Corp. | 2025 Annual Report on Form 10-K | 9 Table of Contents Large Loans.
In the fourth quarter of 2024, approximately 83% (by dollar amount) of customer payments were made by debit card or ACH. If a loan becomes severely delinquent, a branch may receive co-collection assistance from our centralized servicing team or third-party collector. Our philosophy is to work with customers experiencing payment difficulties.
In the fourth quarter of 2025, approximately 84% (by dollar amount) of customer payments were made by debit card or ACH. If a loan becomes severely delinquent, a branch may receive co-collection assistance from our centralized servicing team or third-party collector. Our philosophy is to work with customers experiencing payment difficulties.
Nortridge logs and maintains, within our centralized information systems, a permanent record of the loan origination and servicing approvals and processes and permits all Regional Management Corp. | 2024 Annual Report on Form 10-K | 13 levels of branch and centralized management to review the individual and collective performance of all branches for which they are responsible on a daily basis.
Nortridge logs and maintains, within our centralized information systems, a permanent record of the loan origination and servicing approvals and processes and permits all levels of branch and centralized Regional Management Corp. | 2025 Annual Report on Form 10-K | 13 Table of Contents management to review the individual and collective performance of all branches for which they are responsible on a daily basis.
We also began testing a digital origination product and channel for new customers (through which new loans can be fulfilled entirely online without intervention by our personnel), we launched an enhanced customer portal, and we deployed our mobile app.
We also tested a digital origination product and channel for new customers (through which new loans can be fulfilled entirely online without intervention by our personnel), we launched an enhanced customer portal, and we deployed our mobile app.
Our branch network serves as the foundation of our omni-channel platform and the primary point of contact with our customers. Nearly 73% of our loan originations in 2024 were facilitated by one of our branch locations, and nearly all loans, regardless of origination channel, are serviced through our branches, allowing us to maintain frequent, in-person contact with our customers.
Our branch network serves as the foundation of our omni-channel platform and the primary point of contact with our customers. Nearly 74% of our loan originations in 2025 were facilitated by one of our branch locations, and nearly all loans, regardless of origination channel, are serviced through our branches, allowing us to maintain frequent, in-person contact with our customers.
Accordingly, the sum of branch contributions from all of our branches is greater than our income before taxes. Human Capital As of December 31, 2024, we had 2,131 employees. All of our employees are located within the United States, and none are covered by a collective bargaining agreement.
Accordingly, the sum of branch contributions from all of our branches is greater than our income before taxes. Human Capital As of December 31, 2025, we had 2,112 employees. All of our employees are located within the United States, and none are covered by a collective bargaining agreement.
As a result, our new branches opened between 2021 and 2024 have on average grown their net finance receivables and operating income contribution at a faster pace than branches opened prior to 2021.
As a result, our new branches opened since 2021 have on average grown their net finance receivables and operating income contribution at a faster pace than branches opened prior to 2021.
As of December 31, 2024, we operated under the name “Regional Finance” online and in branch locations in 19 states across the United States, serving 575,400 active accounts. Most of our loan products are secured, and each is structured on a fixed-rate, fixed-term basis with fully amortizing equal monthly installment payments, repayable at any time without penalty.
As of December 31, 2025, we operated under the name “Regional Finance” online and in branch locations in 19 states across the United States, serving 590,800 active accounts. Most of our loan products are secured, and each is structured on a fixed-rate, fixed-term basis with fully amortizing equal monthly installment payments, repayable at any time without penalty.
We believe that refinancing delinquent loans for certain deserving customers who have made periodic payments allows us to help customers resolve temporary financial setbacks and repair or sustain their credit. During 2024, we refinanced approximately $12.7 million of loans that were 60 or more days contractually past due, representing approximately 0.8% of our total loan originations in 2024.
We believe that refinancing delinquent loans for certain deserving customers who have made periodic payments allows us to help customers resolve temporary financial setbacks and repair or sustain their credit. During 2025, we refinanced approximately $7.9 million of loans that were 60 or more days contractually past due, representing approximately 0.4% of our total loan originations in 2025.
As of December 31, 2024, the outstanding balance of such refinanced loans was $11.1 million, or 0.6% of finance receivables as of such date. We may also agree to settle or permanently modify a past-due loan by accepting less than the full principal balance owed, either in a lump sum or over an established term.
As of December 31, 2025, the outstanding balance of such refinanced loans was $6.9 million, or 0.3% of finance receivables as of such date. We may also agree to settle or permanently modify a past-due loan by accepting less than the full principal balance owed, either in a lump sum or over an established term.
In 2024, 2023, and 2022, interest and fee income from large loans contributed $337.7 million, $323.9 million, and $288.5 million, respectively, to our total revenue. • Small Loans – We offer small installment loans with cash proceeds to customers ranging from $500 to $2,500, with terms of up to 48 months.
In 2025, 2024, and 2023, interest and fee income from large loans contributed $382.9 million, $337.7 million, and $323.9 million, respectively, to our total revenue. • Small Loans – We offer small installment loans with cash proceeds to customers ranging from $500 to $2,500, with terms of up to 48 months.
Attractive Products for Customers with Limited Access to Credit. Our flexible loan products, generally ranging from $500 to $35,000 with terms of up to 60 months, are competitively priced, easy to understand, and incorporate features designed to meet the varied financial needs and credit profiles of a broad range of consumers.
Our flexible loan products, generally ranging from $500 to $35,000 with terms of up to 60 months, are competitively priced, easy to understand, and incorporate features designed to meet the varied financial needs and credit profiles of a broad range of consumers.
At December 31, 2020 2021 2022 2023 2024 Texas 29 % 31 % 33 % 32 % 32 % North Carolina 14 % 15 % 15 % 16 % 17 % South Carolina 18 % 15 % 12 % 11 % 10 % All Other States 39 % 39 % 40 % 41 % 41 % Total 100 % 100 % 100 % 100 % 100 % The following table sets forth the total number of large loans, total large loan finance receivables, and average size per loan by state as of December 31, 2024.
At December 31, 2025 2024 2023 2022 2021 Texas 31 % 32 % 32 % 33 % 31 % North Carolina 16 % 17 % 16 % 15 % 15 % South Carolina 9 % 10 % 11 % 12 % 15 % All Other States 44 % 41 % 41 % 40 % 39 % Total 100 % 100 % 100 % 100 % 100 % The following table sets forth the total number of large loans, total large loan finance receivables, and average size per loan by state as of December 31, 2025.
As of December 31, 2024, our state operations vice presidents averaged nearly 30 years of industry experience and over 11 years of service at Regional, while our associate vice presidents and district supervisors averaged over 20 years of industry experience and 10 years of service with Regional.
As of December 31, 2025, our state operations vice presidents averaged over 30 years of industry experience and over 11 years of service at Regional, while our associate vice presidents and district supervisors averaged over 20 years of industry experience and 11 years of service with Regional.
We began building our branch network over 35 years ago and have expanded the network to 344 branches in 19 states as of December 31, 2024.
We began building our branch network over 35 years ago and have expanded the network to 353 branches in 19 states as of December 31, 2025.
In 2024, our average originated principal balance and weighted-average term for small loans were $2,144 and 26 months, respectively. The average interest and fee yield we earned on our portfolio of small loans was 37.6% in 2024. The following table sets forth the distribution of our small loan finance receivable portfolio by state as of the dates indicated.
In 2025, our average originated principal balance and weighted-average term for small loans were $2,225 and 26 months, respectively. The average interest and fee yield we earned on our portfolio of small loans was 36.2% for 2025. The following table sets forth the distribution of our small loan finance receivable portfolio by state as of the dates indicated.
We believe that there remains substantial opportunity to grow the finance receivable portfolios of our existing branches. During 2022, we expanded into Mississippi, Indiana, California, Louisiana, and Idaho, and we further expanded into Arizona during 2023. We anticipate that as our newer branches mature, their revenue will grow faster than our overall same-store revenue growth rate.
We believe that there remains substantial opportunity to grow the finance receivable portfolios of our existing branches. In recent years, we have expanded into Mississippi, Indiana, California, Louisiana, Idaho, and Arizona. We anticipate that as our newer branches mature, their revenue will grow faster than our overall same-store revenue growth rate.
In 2024, our average originated principal balance and weighted-average term for large loans were $6,001 and 50 months, respectively. The average interest and fee yield we earned on our portfolio of large loans was 26.4% for 2024. The following table sets forth the distribution of our large loan finance receivable portfolio by state as of the dates indicated.
In 2025, our average originated principal balance and weighted-average term for large loans were $6,521 and 51 months, respectively. The average interest and fee yield we earned on our portfolio of large loans was 26.7% for 2025. The following table sets forth the distribution of our large loan finance receivable portfolio by state as of the dates indicated.
Our large loans are typically secured by non-essential household goods and/or a vehicle. As of December 31, 2024, we had 259,500 large loans outstanding representing $1.3 billion in finance receivables, or an average of approximately $5,200 per loan.
Our large loans are typically secured by non-essential household goods and/or a vehicle. As of December 31, 2025, we had 289,300 large loans outstanding representing $1.6 billion in finance receivables, or an average of approximately $5,500 per loan.
Our Chief Executive Officer has over 30 years of experience in consumer financial services, our Chief Financial and Administrative Officer has over 20 years of financial services experience, and our Chief Credit Risk Officer has over 20 years of financial and consumer lending experience.
Our Chief Financial and Administrative Officer has over 25 years of financial services experience, and our Chief Credit Risk Officer has over 20 years of financial and consumer lending experience.
Our small loans are typically secured by non-essential household goods and/or, to a lesser extent, a lien on a vehicle. As of December 31, 2024, we had 314,900 small loans outstanding representing $554.7 million in finance receivables, or an average of approximately $1,800 per loan.
Our small loans are typically secured by non-essential household goods and/or, to a lesser extent, a lien on a vehicle. As of December 31, 2025, we had 301,500 small loans outstanding representing $547.0 million in finance receivables, or an average of approximately $1,800 per loan.
These investments allow us to control the credit quality of our portfolio, maintain compliance with evolving state and federal law, and react quickly whenever market dynamics may change. Regional Management Corp. | 2024 Annual Report on Form 10-K | 7 We have also expanded our centralized collections department and provided our branches with improved collections tools, training, and incentives.
These investments allow us to control the credit quality of our portfolio, maintain compliance with evolving state and federal law, and react quickly whenever market dynamics may change. We have also expanded our centralized collections department and provided our branches with improved collections tools, training, and incentives.
We work diligently to attract the best talent in order to meet the current and future demands of our business, and we have demonstrated a history of investing in our workforce by offering competitive compensation, comprehensive benefits, and development opportunities.
We work diligently to attract the best talent in order to meet the current and future demands of our business, and we have demonstrated a history of investing in our workforce by offering competitive compensation, comprehensive benefits, and development opportunities. We are committed to fostering, cultivating, and preserving a strong culture and inclusive work environment.
In 2024, 2023, and 2022, interest and fee income from small loans contributed $190.8 million, $164.7 million, and $160.4 million, respectively, to our total revenue. • Optional Payment and Collateral Protection Insurance Products – We offer our customers optional payment and collateral protection insurance relating to our loan products, including credit life insurance, accident and health insurance, involuntary unemployment insurance, and personal property insurance.
In 2025, 2024, and 2023, interest and fee income from small loans contributed $196.0 million, $191.2 million, and $165.8 million, respectively, to our total revenue. • Optional Payment and Collateral Protection Insurance Products – We offer our customers optional payment and collateral protection insurance relating to our loan products, including credit life insurance, accident and health insurance, involuntary unemployment insurance, and personal property insurance.
The Company responded to the Notice by voluntarily consenting to the CFPB’s supervisory authority and entering into a Consent Agreement. Pursuant to the Consent Agreement and related CFPB order, the CFPB will have supervisory authority over the Company for a period of two years ending January 8, 2026.
The Company responded to the Notice by voluntarily consenting to the CFPB’s supervisory authority and entering into a Consent Agreement dated January 4, 2024. Pursuant to the Consent Agreement and related CFPB order, the CFPB had supervisory authority over the Company for a period of two years.
While the economic environment has challenged our customers and stressed our portfolio credit performance in recent years, we believe that our customers and business model have remained resilient. Demonstrated Organic Growth. We have grown our total finance receivables by 67.0%, from $1.1 billion at December 31, 2019 to $1.9 billion at December 31, 2024, a CAGR of 10.8%.
While the economic environment has challenged our customers and stressed our portfolio credit performance in recent years, we believe that our customers and business model have remained resilient. Demonstrated Organic Growth. We have grown our total finance receivables by 88.4%, from $1.1 billion at December 31, 2020 to $2.1 billion at December 31, 2025, a CAGR of 13.5%.
Our loan origination and servicing software platform allows us to automate our underwriting decisions, and in 2022, we introduced our next generation custom credit model, a new proprietary model that provides significant advancements in underwriting capabilities by utilizing sophisticated modeling algorithms that leverage new alternative data sources to drive more predictable outcomes and make better credit decisions at the margin.
Our loan origination and servicing software platform allows us to automate our underwriting decisions, and over the past few years, we have introduced our new proprietary credit models that provide significant advancements in underwriting capabilities by utilizing sophisticated modeling algorithms that leverage new alternative data sources to drive more predictable outcomes and make better credit decisions at the margin.
However, during that time, we also remained keenly focused on driving operating leverage through the prudent management of our expenses. Between 2019 and 2024, our operating expense ratio decreased from 15.6% to 13.8%.
However, during that time, we also remained keenly focused on driving operating leverage through the prudent management of our expenses. Between 2020 and 2025, our operating expense ratio decreased from 16.4% to 13.1%.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 10 Generally, credit life insurance provides for the payment in full of the borrower’s credit obligation to the lender in the event of the borrower’s death and, in some states, may provide a payment to a secondary beneficiary listed by the borrower.
Generally, credit life insurance provides for the payment in full of the borrower’s credit obligation to the lender in the event of the borrower’s death and, in some states, may provide a payment to a secondary beneficiary listed by the borrower.
These efforts enabled us to maintain new digitally sourced volumes as a percentage of total new customer volumes at over 27% in 2024, compared to nearly 29% in 2023. In the future, we will continue our focus on the digital channel.
These efforts enabled us to maintain new digitally sourced volumes as a percentage of total new customer volumes at nearly 32% in 2025, compared to over 27% in 2024. In the future, we will continue our focus on the digital channel. We plan to improve and further test our digital origination product and improve the customer experience.
We also structure our loans on a fixed-rate, fixed-term basis with fully amortizing, equal monthly installment payments that are designed to be affordable for our customers and made over a weighted-average term of 50 months and 26 months for large and small loans, respectively (for loans originated in 2024).
We also structure our loans on a fixed-rate, fixed-term basis with fully amortizing, equal monthly installment payments that are designed to be affordable for our Regional Management Corp. | 2025 Annual Report on Form 10-K | 6 Table of Contents customers and made over a weighted-average term of 51 months and 26 months for large and small loans, respectively (for loans originated in 2025).
At December 31, 2020 2021 2022 2023 2024 Texas 37 % 35 % 33 % 30 % 27 % North Carolina 17 % 16 % 16 % 13 % 13 % All Other States 46 % 49 % 51 % 57 % 60 % Total 100 % 100 % 100 % 100 % 100 % The following table sets forth the total number of small loans, total small loan finance receivables, and average size per loan by state as of December 31, 2024.
At December 31, 2025 2024 2023 2022 2021 Texas 25 % 27 % 30 % 33 % 35 % North Carolina 13 % 13 % 13 % 16 % 16 % Alabama 9 % 9 % 10 % 9 % 10 % All Other States 53 % 51 % 47 % 42 % 39 % Total 100 % 100 % 100 % 100 % 100 % The following table sets forth the total number of small loans, total small loan finance receivables, and average size per loan by state as of December 31, 2025.
Also, where a company has violated Title X of the Dodd-Frank Act or CFPB regulations thereunder, the Dodd-Frank Act empowers state attorneys general and state regulators to bring civil actions to remedy violations of state law. Other Federal Laws and Regulations.
Also, where a company has violated Title X of the Dodd-Frank Act or CFPB regulations thereunder, the Dodd-Frank Act empowers state attorneys general and state regulators to bring civil actions to remedy violations of state law. Notwithstanding the foregoing, changes in the U.S. presidential administration and the composition of the U.S.
For example, in 2024, we worked with many of our deserving customers to refinance over 25,000 of our customers’ small loans into large loans, representing $147.8 million in finance receivables at origination, and resulting in a decrease in these customers’ average APR from 42.8% to 31.1%.
For example, in 2025, we worked with many of our deserving customers to refinance approximately 26,000 of our customers’ small loans into large loans, representing $163.3 million in finance receivables at origination, and resulting in a decrease in these customers’ average APR from 42.7% to 30.6%.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 11 The following table sets forth the net finance receivables per branch based on maturity: Age of Branch (As of December 31, 2024) Net Finance Receivables Per Branch as of December 31, 2024 Percentage Increase From Prior Age Category Number of Branches (In thousands) Branches open less than one year $ 1,755 — 7 Branches open one to three years $ 7,419 322.7 % 22 Branches open three to five years $ 5,582 (24.8 )% 28 Branches open five years or more $ 5,438 (2.6 )% 287 Total $ 5,502 344 The following table sets forth the average operating income contribution per branch for the year ended December 31, 2024, based on maturity of the branch.
Regional Management Corp. | 2025 Annual Report on Form 10-K | 11 Table of Contents The following table sets forth the net finance receivables per branch based on maturity: Age of Branch (As of December 31, 2025) Net Finance Receivables Per Branch as of December 31, 2025 Percentage Increase From Prior Age Category Number of Branches (In thousands) Branches open less than one year $ 3,076 — 17 Branches open one to three years $ 7,133 131.9 % 13 Branches open three to five years $ 8,283 16.1 % 35 Branches open five years or more $ 5,921 (28.5 )% 288 Total $ 6,063 353 The following table sets forth the average operating income contribution per branch for the year ended December 31, 2025, based on maturity of the branch.
The weighted-average APR of our large loans, which are reserved for higher credit quality customers who meet more stringent underwriting requirements than those applied to small loan applicants, was 30.9% for loans originated in 2024. The Regional Management Corp. | 2024 Annual Report on Form 10-K | 6 weighted-average APR of our small loans originated in 2024 was 45.2%.
The weighted-average APR of our large loans, which are reserved for higher credit quality customers who meet more stringent underwriting requirements than those applied to small loan applicants, was 30.6% for loans originated in 2025. The weighted-average APR of our small loans originated in 2025 was 44.3%.
We may be required to reduce interest rates on “pre-service” debts incurred by servicemembers, and we may be prohibited from pursuing certain forms of legal action against servicemembers, such as default judgments, during periods of active duty. • Military Lending Act. The Military Lending Act applies to active duty servicemembers and their covered dependents.
We may be required to reduce interest rates on Regional Management Corp. | 2025 Annual Report on Form 10-K | 15 Table of Contents “pre-service” debts incurred by servicemembers, and we may be prohibited from pursuing certain forms of legal action against servicemembers, such as default judgments, during periods of active duty. • Military Lending Act.
As a result, our customers often do not qualify for prime financing from banks, thrifts, credit card providers, and other lenders. However, like prime consumers, our customers have a need and a desire to utilize credit.
Our customers typically have less-than-perfect credit profiles and, for that reason, are generally considered subprime, non-prime, or near-prime consumers. As a result, our customers often do not qualify for prime financing from banks, thrifts, credit card providers, and other lenders. However, like prime consumers, our customers have a need and a desire to utilize credit.
Our direct mail campaigns include mailings of pre-screened convenience checks, pre-qualified offers, and invitations to apply, which enable us to market our products to millions of current and potential customers in a cost-effective manner.
Our direct mail campaigns include mailings of pre-screened convenience checks, pre-qualified offers, and invitations to apply, which enable us to market our products to millions of current and potential customers in a cost-effective manner. We have also developed our consumer website and partnered with digital lead generation sources to promote our products and facilitate loan applications.
We are prohibited from charging a borrower covered under the Military Lending Act more than a 36% Military Annual Percentage Rate, which includes certain costs associated with the loan in calculating the rate. Regional Management Corp. | 2024 Annual Report on Form 10-K | 15 • Gramm-Leach-Bliley Act.
The Military Lending Act applies to active duty servicemembers and their covered dependents. We are prohibited from charging a borrower covered under the Military Lending Act more than a 36% Military Annual Percentage Rate, which includes certain costs associated with the loan in calculating the rate. • Gramm-Leach-Bliley Act.
Our insurance products, including the types of products offered and their terms and conditions, vary from state to state in compliance with applicable laws and regulations. Insurance policy premiums, claims, and expenses are included in our results of operations as insurance income, net in the consolidated statements of comprehensive income.
Our insurance products, including the types of products offered and their terms and conditions, vary from state to state in compliance with applicable laws and regulations.
Our district supervisors, associate vice presidents, state vice presidents, and compliance and internal audit teams regularly review servicing and collection records to ensure compliance with our policies and procedures.
Our district supervisors, associate vice presidents, state vice Regional Management Corp. | 2025 Annual Report on Form 10-K | 12 Table of Contents presidents, and compliance and internal audit teams regularly review servicing and collection records to ensure compliance with our policies and procedures.
The training includes a blended approach utilizing eLearning modules, hands-on exercises, webinars, and assessments. Training content is focused on our operating policies and procedures, as well as several key compliance areas. Incentive compensation for new employees is contingent upon the successful and timely completion of the required new hire training curriculum.
Training content is focused on our operating policies and procedures, as well as several key compliance areas. Incentive compensation for new employees is contingent upon the successful and timely completion of the required new hire training curriculum. All current employees are also required to complete quarterly compliance training and re-certification.
Our investment in our digital channel allows us to add capabilities, improve efficiencies, enhance the customer experience, and test new mechanisms for lead generation to diversify and expand our new business acquisition opportunities. Enhance Our Products, Channels, and Services.
We also expect to complete enhancements to our customer portal and mobile app, allowing our customers easy access to payment functionality and additional features. Our investment in our digital channel allows us to add capabilities, improve efficiencies, enhance the customer experience, and test new mechanisms for lead generation to diversify and expand our new business acquisition opportunities.
Age of Branch (As of December 31, 2024) Average Branch Operating Income Contribution Percentage Increase From Prior Age Category Number of Branches (In thousands) Branches open less than one year $ 9 — 7 Branches open one to three years $ 126 1,300.0 % 22 Branches open three to five years $ 290 130.2 % 28 Branches open five years or more $ 647 123.1 % 287 Total $ 572 344 Historically, net finance receivables per branch and average branch operating income contribution have increased as our branches mature.
Age of Branch (As of December 31, 2025) Average Branch Operating Income Contribution Percentage Increase From Prior Age Category Number of Branches (In thousands) Branches open less than one year $ 170 — 17 Branches open one to three years $ 139 (18.2 )% 13 Branches open three to five years $ 356 156.1 % 35 Branches open five years or more $ 626 75.8 % 288 Total $ 560 353 Historically, net finance receivables per branch and average branch operating income contribution have increased as our branches mature.
We are also committed to fostering, cultivating, and preserving a strong culture and inclusive work environment. We also offer our employees a variety of training and development opportunities. New employees complete a comprehensive training curriculum that focuses on the company- and position-specific competencies needed to be successful.
We also offer our employees a variety of training and development opportunities. New employees complete a comprehensive training curriculum that focuses on the company- and position-specific competencies needed to be successful. The training includes a blended approach utilizing eLearning modules, hands-on exercises, webinars, and assessments.
In addition, in 2023 and 2024, we began to increase our marketing investment in our higher-margin small loan product, part of our barbell strategy of growing our higher-margin small loan accounts and our higher-quality auto-secured accounts.
In addition, in recent years we began to increase our marketing investment in our higher-margin small loan product, part of our strategy of growing our Regional Management Corp. | 2025 Annual Report on Form 10-K | 8 Table of Contents higher-margin small loan accounts and our higher-quality auto-secured accounts.
We have also developed our consumer website and partnered with digital lead generation sources to promote our products and facilitate loan applications and originations via the internet. We believe that our omni-channel platform provides us with a competitive advantage by giving us broad access to our existing and former customers and multiple avenues to attract new customers.
We believe that our omni-channel platform provides us with a competitive advantage by giving us broad access to our existing and former customers and multiple avenues to attract new customers. Attractive Products for Customers with Limited Access to Credit.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 12 Payment and Loan Servicing We have implemented company-wide payment and loan servicing policies and procedures, which are designed to maintain consistent portfolio performance and ensure regulatory compliance.
Additional management and developmental training is provided for those employees seeking to advance within our company. Payment and Loan Servicing We have implemented company-wide payment and loan servicing policies and procedures, which are designed to maintain consistent portfolio performance and ensure regulatory compliance.
This receivables growth has driven a revenue increase of 65.4%, from $355.7 million in 2019 to $588.5 million in 2024, a CAGR of 10.6%. Our portfolio growth has come from expanding our geographic presence, growing our finance receivable portfolios within existing branches, and developing new products and channels, including through digital lead generation.
Our portfolio growth has come from expanding our geographic presence, Regional Management Corp. | 2025 Annual Report on Form 10-K | 7 Table of Contents growing our finance receivable portfolios within existing branches, and developing new products and channels, including through digital lead generation.
Over time, we intend to improve our existing product offerings, to introduce new products and services, and to capture customers through new channels and partnerships.
Enhance Our Products, Channels, and Services. Over time, we intend to improve our existing product offerings, to introduce new products and services, and to capture customers through new channels and partnerships. For example, we have introduced an enhanced auto-secured large loan product, through which we offer larger auto-secured loans to some of our highest credit quality customers.
Since 2018, we have entered 10 new states and have introduced new technologies and marketing strategies to enable remote loan closings and to extend the geographic reach of our branches. Experienced Management Team. Our executive and senior operations management teams consist of individuals experienced in installment lending and other consumer finance services.
We plan to continue entering new geographies, opening additional branches, and introducing new products, channels, and marketing strategies to grow our portfolio. Experienced Management Team. Our executive and senior operations management teams consist of individuals experienced in installment lending and other consumer finance services.
Number of Loans Net Finance Receivables Average Size Per Loan (In thousands) Texas 82,177 $ 148,095 $ 1,802 North Carolina 39,549 71,155 1,799 All Other States 193,149 335,436 1,737 Total 314,875 $ 554,686 $ 1,762 Insurance and Ancillary Products We also offer our customers various optional payment and collateral protection insurance products as a complement to our lending operations.
Number of Loans Net Finance Receivables Average Size Per Loan (In thousands) Texas 74,300 $ 136,606 $ 1,839 North Carolina 37,944 70,083 1,847 Alabama 25,654 48,435 1,888 All Other States 163,627 291,904 1,784 Total 301,525 $ 547,028 $ 1,814 Insurance and Ancillary Products We also offer our customers various optional payment and collateral protection insurance products as a complement to our lending operations.
Removed
In 2024, 2023, and 2022, insurance income, net contributed $40.7 million, $44.5 million, and $43.5 million, respectively, to our total revenue. Through November 2022, we also offered indirect retail installment loans of up to $7,500.
Added
This receivables growth has driven a revenue increase of 72.7%, from $373.9 million in 2020 to $645.6 million in 2025, a CAGR of 11.5%.
Removed
We ceased offering indirect retail installment loans in November 2022 to focus on growing our core loan portfolio, but we continue to own and service the loans that we previously originated. As of December 31, 2024, we had 1,000 retail loans outstanding representing $1.1 million in finance receivables, or an average of approximately $1,100 per loan.
Added
Our Chief Executive Officer until November 10, 2025 had over 30 years of experience in consumer financial services, and our new Chief Executive Officer effective November 10, 2025 also has nearly 30 years of leadership experience in consumer lending and financial services.
Removed
We plan to expand the testing of our digital origination product and channel to new geographies and improve the customer experience. We also expect to complete enhancements to our customer portal and mobile app, allowing our customers easy access to payment functionality and additional features.
Added
As of the end of 2025, auto-secured loans represented $294.3 million, or 13.7% of our total portfolio.
Removed
For example, in 2020, we introduced Regional Management Corp. | 2024 Annual Report on Form 10-K | 8 an enhanced auto-secured large loan product, through which we offer larger auto-secured loans to some of our highest credit quality customers. As of the end of 2024, auto-secured loans represented $206.6 million, or 10.9% of our total portfolio.
Added
Number of Loans Net Finance Receivables Average Size Per Loan (In thousands) Texas 75,894 $ 499,892 $ 6,587 North Carolina 52,051 257,665 4,950 South Carolina 23,909 138,322 5,785 All Other States 137,402 697,292 5,075 Total 289,256 $ 1,593,171 $ 5,508 Small Loans.
Removed
Number of Loans Net Finance Receivables Average Size Per Loan (In thousands) Texas 71,186 $ 427,046 $ 5,999 North Carolina 47,635 223,565 4,693 South Carolina 24,613 132,623 5,388 All Other States 116,072 553,546 4,769 Total 259,506 $ 1,336,780 $ 5,151 Small Loans.
Added
Insurance policy premiums, claims, and Regional Management Corp. | 2025 Annual Report on Form 10-K | 10 Table of Contents expenses are included in our results of operations as insurance income, net in the consolidated statements of comprehensive income. In 2025, insurance income, net was $45.6 million, or 7.1% of our total revenue.
Removed
In 2024, insurance income, net was $40.7 million, or 6.9% of our total revenue.
Added
In 2025, we developed a new front-end branch origination platform that will improve team member effectiveness, enhance the customer experience, and ultimately benefit our operating efficiency. We began rolling out the new origination platform in 2025 and expect to complete the platform implementation across all states in the next 12 months.
Removed
In addition, to ensure that we provide a rewarding experience for our employees, we engage independent third parties to conduct periodic employee engagement surveys, enabling us to regularly measure organizational culture and engagement and to improve upon the employee experience, which in turn drives a superior customer experience.
Added
In April 2025, the CFPB closed its examination of the Company without any adverse finding and, on January 8, 2026, the CFPB’s supervision of the Company ended pursuant to the terms of the Consent Agreement.
Removed
All current employees are also required to complete quarterly compliance training and re-certification. Additional management and developmental training is provided for those employees seeking to advance within our company.
Added
Congress have led to significant changes to the structure, priorities, scope, practices, and staffing levels of various regulatory agencies, including the CFPB. For example, in February 2025, the current presidential administration directed the CFPB to, among other things, suspend rule implementations and cease supervisory activities. The impact of these changes on organizations subject to CFPB regulation and supervision is uncertain.
Removed
The Consent Agreement does not constitute an admission by the Company that it is a nonbank covered person that is engaging, or has engaged, in conduct that poses risks to consumers with regard to the offering or provision of consumer financial products or services.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

87 edited+22 added−14 removed317 unchanged
Biggest changeFor example, the CFPB may establish supervisory authority over a nonbank covered entity that it has reasonable cause to determine is engaging, or has engaged, in conduct that poses risks to consumers. The CFPB also has broad rulemaking and enforcement authority over providers of credit, savings, and payment services and products and authority to prevent “unfair, deceptive or abusive” practices.
Biggest changeThe CFPB has supervision, examination, and enforcement authority over the consumer financial products and services offered by certain non-depository institutions and large insured depository institutions. For example, the CFPB may establish supervisory authority over a nonbank covered entity that it has reasonable cause to determine is engaging, or has engaged, in conduct that poses risks to consumers.
As of December 31, 2024, subject to adjustments as provided in the 2024 Plan, the maximum aggregate number of shares of our common stock that may be issued under the 2024 Plan may not exceed the sum of (i) 381,000 shares plus, (ii) any shares remaining available for the grant of awards as of the 2024 Plan’s effective date under the 2015 Plan, plus (iii) any shares subject to an award granted under the 2015 Plan which award is forfeited, cash-settled, cancelled, terminated, expires, or lapses for any reason after the 2024 Plan’s effective date without the issuance of shares or pursuant to which such shares are forfeited.
As of December 31, 2025, subject to adjustments as provided in the 2024 Plan, the maximum aggregate number of shares of our common stock that may be issued under the 2024 Plan may not exceed the sum of (i) 381,000 shares plus, (ii) any shares remaining available for the grant of awards as of the 2024 Plan’s effective date under the 2015 Plan, plus (iii) any shares subject to an award granted under the 2015 Plan which award is forfeited, cash-settled, cancelled, terminated, expires, or lapses for any reason after the 2024 Plan’s effective date without the issuance of shares or pursuant to which such shares are forfeited.
These risks are discussed in greater detail below, and include, but are not limited to, risks related to: Risks related to our business and operations • Managing our growth effectively, implementing our growth strategy, and opening new branches as planned; • Our convenience check strategy; • Our policies and procedures for underwriting, processing, and servicing loans; • Our ability to collect on our loan portfolio; • Our 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 our custom scorecards; • Changes in the competitive environment in which we operate or a decrease in the demand for our products; • Geographic concentration of our loan portfolio; • Failure of third-party service providers, including those providing information technology products; • Changes in economic conditions in the markets we serve, including levels of unemployment and bankruptcies; Regional Management Corp. | 2024 Annual Report on Form 10-K | 16 • Our ability to achieve successful acquisitions and strategic alliances; • Our ability to make technological improvements as quickly as our competitors; • Security breaches, cyber-attacks, failures in our information systems, or fraudulent activity; • Our ability to originate loans; • Our 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; • Our ability to identify and hire qualified personnel; • Our ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support our operations and initiatives; • Changes in interest rates; • Existing sources of liquidity become insufficient or access to these sources becomes unexpectedly restricted; and • Exposure to financial risk due to asset-backed securitization transactions.
These risks are discussed in greater detail below, and include, but are not limited to, risks related to: Risks related to our business and operations • Managing our growth effectively, implementing our growth strategy, and opening new branches as planned; • Our convenience check strategy; • Our policies and procedures for underwriting, processing, and servicing loans; • Our ability to collect on our loan portfolio; • Our 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 our custom scorecards; Regional Management Corp. | 2025 Annual Report on Form 10-K | 16 Table of Contents • Changes in the competitive environment in which we operate or a decrease in the demand for our products; • Geographic concentration of our loan portfolio; • Failure of third-party service providers, including those providing information technology products; • Changes in economic conditions in the markets we serve, including levels of unemployment and bankruptcies; • Our ability to achieve successful acquisitions and strategic alliances; • Our ability to make technological improvements as quickly as our competitors; • Security breaches, cyber-attacks, failures in our information systems, or fraudulent activity; • Development and use of AI; • Our ability to originate loans; • Our 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; • Our ability to identify and hire qualified personnel; • Our ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support our operations and initiatives; • Changes in interest rates; • Existing sources of liquidity become insufficient or access to these sources becomes unexpectedly restricted; and • Exposure to financial risk due to asset-backed securitization transactions.
Although we successfully completed securitizations during the past six years, we can give no assurances that we will be able to complete additional securitizations, including if, for example, the securitization markets become constrained or events within the Company cause investors to lack confidence in our ability to fulfill our obligations as servicer with respect to the securitizations.
Although we successfully completed securitizations during the past seven years, we can give no assurances that we will be able to complete additional securitizations, including if, for example, the securitization markets become constrained or events within the Company cause investors to lack confidence in our ability to fulfill our obligations as servicer with respect to the securitizations.
Our amended and restated certificate of incorporation and amended and restated bylaws contain provisions that may make the acquisition of our company more difficult without the approval of our Board.
Our amended and restated certificate of incorporation and second amended and restated bylaws contain provisions that may make the acquisition of our company more difficult without the approval of our Board.
Our ability to execute this growth strategy is subject to significant risks, some of which are beyond our control, including: • the inherent uncertainty regarding general economic conditions, including the impact of inflationary pressures and higher interest rates; • the prevailing laws and regulatory environment of each state in which we operate or seek to operate and federal laws and regulations, all of which are subject to change at any time; • the degree of competition in new markets and its effect on our ability to attract new customers; • our ability to identify attractive locations for new branches; • our ability to recruit qualified personnel, particularly in remote areas and in areas where we face a great deal of competition; and • our ability to obtain adequate financing for our expansion plans.
Our ability to execute this growth strategy is subject to significant risks, some of which are beyond our control, including: • the inherent uncertainty regarding general economic conditions, including the impact of inflationary pressures and interest rate volatility; • the prevailing laws and regulatory environment of each state in which we operate or seek to operate and federal laws and regulations, all of which are subject to change at any time; • the degree of competition in new markets and its effect on our ability to attract new customers; • our ability to identify attractive locations for new branches; • our ability to recruit qualified personnel, particularly in remote areas and in areas where we face a great deal of competition; and • our ability to obtain adequate financing for our expansion plans.
There are several risks associated with the use or origination of convenience checks, including the following: • it is more difficult to maintain sound underwriting standards with convenience check customers who historically have presented a higher risk of default than customers that originate loans in our branches, as we do not meet convenience check customers prior to soliciting them and extending a loan to them, and we may not be able to verify certain elements of their financial condition, including their current employment status, income, or life circumstances; Regional Management Corp. | 2024 Annual Report on Form 10-K | 18 • we rely on credit information from a third-party credit bureau that is more limited than a full credit report to pre-screen potential convenience check recipients, which may not be as effective as a full credit report or may be inaccurate or outdated; • we face limitations on the number of potential borrowers who meet our lending criteria within proximity to our branches; • we may not be able to continue to access the demographic and credit file information that we use to generate our mailing lists due to expanded regulatory or privacy restrictions; • convenience checks pose a risk of fraud; • any failure by the bank that issues and processes our convenience checks to properly process the convenience checks could limit the ability of a recipient to cash the check and enter into a loan with us; • customers may opt out of direct mail solicitations and solicitations based on their credit file or may otherwise prohibit us from soliciting them; • postal rates and production costs may continue to rise; • potential changes in federal or state laws may prohibit the practice of directly mailing convenience checks to potential borrowers; and • the bank that issues our convenience checks may exit the business, and we may be unable to find a replacement issuer bank.
There are several risks associated with the use or origination of convenience checks, including the following: • it is more difficult to maintain sound underwriting standards with convenience check customers who historically have presented a higher risk of default than customers that originate loans in our branches, as we do not meet convenience check customers prior to soliciting them and extending a loan to them, and we may not be able to verify certain elements of their financial condition, including their current employment status, income, or life circumstances; • we rely on credit information from a third-party credit bureau that is more limited than a full credit report to pre-screen potential convenience check recipients, which may not be as effective as a full credit report or may be inaccurate or outdated; • we face limitations on the number of potential borrowers who meet our lending criteria within proximity to our branches; • we may not be able to continue to access the demographic and credit file information that we use to generate our mailing lists due to expanded regulatory or privacy restrictions; • convenience checks pose a risk of fraud; • any failure by the bank that issues and processes our convenience checks to properly process the convenience checks could limit the ability of a recipient to cash the check and enter into a loan with us; • customers may opt out of direct mail solicitations and solicitations based on their credit file or may otherwise prohibit us from soliciting them; • postal rates and production costs may continue to rise; • potential changes in federal or state laws may prohibit the practice of directly mailing convenience checks to potential borrowers; and • the bank that issues our convenience checks may exit the business, and we may be unable to find a replacement issuer bank.
Our use of third-party vendors is subject to increasing regulatory attention. The CFPB and other regulators have issued regulatory guidance that has focused on the need for financial institutions to oversee their business relationships with service providers in a manner that ensures such service providers comply with applicable law.
Our use of third-party vendors is subject to increasing regulatory attention. Regulators, including the CFPB, have issued regulatory guidance that has focused on the need for financial institutions to oversee their business relationships with service providers in a manner that ensures such service providers comply with applicable law.
We may also face new or heightened risks related to remote work among certain of our employees and use of digital operations, both of which have become more common in recent years. The continued evolution and increased usage of artificial intelligence technologies may further increase our cybersecurity risks.
We may also face new or heightened risks related to remote work among certain of our employees and use of digital operations, both of which have become more common in recent years. The continued evolution and increased usage of AI technologies may further increase our cybersecurity risks.
As we are dependent upon our ability to gather and promptly transmit accurate information to key decision makers, our business, financial condition, and results of operations may be adversely affected if our loan management Regional Management Corp. | 2024 Annual Report on Form 10-K | 23 system does not allow us to transmit accurate information, even for a short period of time.
As we are dependent upon our ability to gather and promptly transmit accurate information to key decision makers, our business, financial condition, and results of operations may be adversely affected if our loan management system Regional Management Corp. | 2025 Annual Report on Form 10-K | 23 Table of Contents does not allow us to transmit accurate information, even for a short period of time.
The financial services industry is undergoing rapid technological changes, with frequent introductions of new technology-driven products, services, and marketing channels, including the use of artificial intelligence and machine-learning solutions to interact with customers, sell products and services, and support and grow a customer base.
The financial services industry is undergoing rapid technological changes, with frequent introductions of new technology-driven products, services, and marketing channels, including the use of AI and machine-learning solutions to interact with customers, sell products and services, and support and grow a customer base.
The Company responded to the Notice by voluntarily consenting to the CFPB’s supervisory authority and entering into a Consent Agreement dated January 4, 2024. Pursuant to the Consent Agreement and related CFPB order, the CFPB will have supervisory authority over the Company for a period of two years ending January 8, 2026.
The Company responded to the Notice by voluntarily consenting to the CFPB’s supervisory authority and entering into a Consent Agreement dated January 4, 2024. Pursuant to the Consent Agreement and related CFPB order, the CFPB had supervisory authority over the Company for a period of two years ending January 8, 2026.
With respect to our managed portfolio of loan products, during fiscal year 2024, approximately 12% (by dollar amount) of our loan payments were made by cash or check and received in branch, although in the future we may direct borrowers to remit payments through one or more lockboxes.
With respect to our managed portfolio of loan products, during fiscal year 2025, approximately 11% (by dollar amount) of our loan payments were made by cash or check and received in branch, although in the future we may direct borrowers to remit payments through one or more lockboxes.
Your stock ownership may be diluted by the future issuance of additional common stock in connection with our incentive plans, acquisitions, or otherwise. We have approximately 985 million shares of common stock authorized but unissued, as of February 19, 2025.
Your stock ownership may be diluted by the future issuance of additional common stock in connection with our incentive plans, acquisitions, or otherwise. We have approximately 985 million shares of common stock authorized but unissued, as of February 17, 2026.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 22 Geographic concentration of our loan portfolio may increase the risk of loss. Any concentration of our loan portfolio in a state or region may present unique risk concentrations.
Regional Management Corp. | 2025 Annual Report on Form 10-K | 22 Table of Contents Geographic concentration of our loan portfolio may increase the risk of loss. Any concentration of our loan portfolio in a state or region may present unique risk concentrations.
Risks Related to Our Business and Operations We have grown significantly in recent years, and our delinquency, credit loss rates, and overall results of operations may be adversely affected if we do not manage our growth effectively.
Risks Related to Our Business and Operations We have grown significantly over the years, and our delinquency, credit loss rates, and overall results of operations may be adversely affected if we do not manage our growth effectively.
During fiscal 2024, the maximum amount of borrowings outstanding under the facility at any one time was $309.7 million. The senior revolving credit facility is collateralized by certain of our assets, including substantially all of our finance receivables (other than those held by certain SPEs, as described below) and equity interests of the majority of our subsidiaries.
During fiscal 2025, the maximum amount of borrowings outstanding under the facility at any one time was $254.2 million. The senior revolving credit facility is collateralized by certain of our assets, including substantially all of our finance receivables (other than those held by certain SPEs, as described below) and equity interests of the majority of our subsidiaries.
As of December 31, 2024, we have completed eleven securitizations, and we may in the future securitize certain of our finance receivables to generate cash to originate new finance receivables or to pay our outstanding indebtedness.
As of December 31, 2025, we have completed thirteen securitizations, and we may in the future securitize certain of our finance receivables to generate cash to originate new finance receivables or to pay our outstanding indebtedness.
The current administration has also indicated its desire to make potentially significant changes to the regulatory enforcement and supervisory agenda of the CFPB. As a result, there is, and will continue to be, uncertainty regarding the future of the CFPB and the impact on the lending markets.
The current administration has also made potentially significant changes to the regulatory enforcement and supervisory agenda of the CFPB. As a result, there is, and will continue to be, uncertainty regarding the future of the CFPB and the impact on the lending markets.
Furthermore, the annual turnover rate among our branch managers was approximately 15% in 2023 and 19% in 2024, and turnover rates of managers in our new branches may be similar or higher.
Furthermore, the annual turnover rate among our branch managers was approximately 19% in both 2024 and 2025, and turnover rates of managers in our new branches may be similar or higher.
Our branches in Texas, North Carolina, and South Carolina accounted for 30%, 16%, and 10%, respectively, of our finance receivables as of December 31, 2024. Further, as of December 31, 2024, all of our operations were across 19 states. As a result, we are highly susceptible to adverse economic conditions in these areas.
Our branches in Texas and North Carolina accounted for 30% and 15%, respectively, of our finance receivables as of December 31, 2025. Further, as of December 31, 2025, all of our operations were across 19 states. As a result, we are highly susceptible to adverse economic conditions in these areas.
We may be unsuccessful in maintaining effective internal controls over financial reporting and disclosure controls and procedures. Controls and procedures are particularly important for consumer finance companies. Effective internal controls over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, are designed to prevent fraud or material error.
Controls and procedures are particularly important for consumer finance companies. Effective internal controls over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, are designed to prevent fraud or material error.
If material weaknesses or significant deficiencies in our internal control over financial reporting are discovered or occur in the future or if our controls and procedures fail or are circumvented, our consolidated financial statements may contain material misstatements, we could be required to restate our financial results, we may be unable to produce accurate and timely financial statements, and we may be unable to maintain compliance with applicable stock exchange listing requirements, any of which could have a material adverse effect on our business, results of operations, financial condition, and stock price.
Regional Management Corp. | 2025 Annual Report on Form 10-K | 29 Table of Contents If material weaknesses or significant deficiencies in our internal control over financial reporting are discovered or occur in the future or if our controls and procedures fail or are circumvented, our consolidated financial statements may contain material misstatements, we could be required to restate our financial results, we may be unable to produce accurate and timely financial statements, and we may be unable to maintain compliance with applicable stock exchange listing requirements, any of which could have a material adverse effect on our business, results of operations, financial condition, and stock price.
Turnover in our branches has remained at high levels during recent years, ranging from approximately 46% in 2020 to 50% in 2024. This turnover increases our cost of operations and makes it more difficult to operate our branches. Our account executives and assistant manager roles have historically experienced high turnover.
Turnover in our branches has remained at high levels during recent years, ranging from approximately 46% in 2020 to 53% in 2025. This turnover increases our cost of operations and makes it more difficult to operate our branches. Our loan specialist and assistant manager roles have historically experienced high turnover.
If customer behavior changes because of economic, political, social, or other conditions and if we are unable to predict how the unemployment rate and general economic uncertainty may affect our credit loss allowance, our provision for credit losses may be inadequate.
If customer behavior changes because of economic, political, social, or other conditions and if we are unable to predict how the unemployment rate and general economic uncertainty may affect our credit loss allowance, our provision for credit losses may be inadequate. As of December 31, 2024, our allowance for credit losses was $199.5 million.
These potential conflicts of interest could have a material adverse effect on our business, financial condition, results of operations, or prospects if attractive corporate opportunities are allocated by such non-employee directors to themselves or their other affiliates instead of us. Regional Management Corp. | 2024 Annual Report on Form 10-K | 40 ITEM 1B. UNRESOLVE D STAFF COMMENTS. None.
These potential conflicts of interest could have a material adverse effect on our business, financial condition, results of operations, or prospects if attractive corporate opportunities are allocated by such non-employee directors to themselves or their other affiliates instead of us. Regional Management Corp. | 2025 Annual Report on Form 10-K | 41 Table of Contents ITEM 1B.
An administrative proceeding or litigation relating to one or more allegations or findings of the violation of such laws by us could result in modifications to our methods of doing business, which could impair our ability to originate or otherwise acquire new loans or collect on our loan portfolio or result in us having to pay damages and/or cancel the balance or other amount owing under the loan associated with such violations.
An administrative proceeding or litigation relating to one or more allegations or findings of the violation of such laws by us could result in modifications to our methods of doing business, which could impair our ability to originate Regional Management Corp. | 2025 Annual Report on Form 10-K | 34 Table of Contents or otherwise acquire new loans or collect on our loan portfolio or result in us having to pay damages and/or cancel the balance or other amount owing under the loan associated with such violations.
In order to compete and to continue to grow, we must attract, retain, and motivate employees, including those in executive, senior management, and operational positions. As our employees gain experience and develop their knowledge and skills, they become highly desired by other businesses.
In order to compete and to continue to grow, we must attract, retain, and motivate employees, including those in executive, senior management, and operational positions. As our employees gain experience and develop their knowledge and skills, they become highly desired by other businesses. Therefore, to retain our employees, we must provide a satisfying work environment and competitive compensation and benefits.
Moreover, various federal and state regulatory agencies require us to notify customers in the event of a security breach. Federal and state legislators and regulators are increasingly pursuing new guidance, laws, and regulations in these areas.
We are subject to a number of federal and state consumer privacy, data protection, and information security laws and regulations. Moreover, various federal and state regulatory agencies require us to notify customers in the event of a security breach. Federal and state legislators and regulators are increasingly pursuing new guidance, laws, and regulations in these areas.
Except for loans originated by a centralized branch and serviced at a centralized location in certain markets, the primary responsibility for the Regional Management Corp. | 2024 Annual Report on Form 10-K | 26 servicing and collections process generally resides with the applicable local branch, although in the future, we may direct borrowers to remit payments through one or more lockboxes.
Except for loans originated by a centralized branch and serviced at a centralized location in certain markets, the primary responsibility for the servicing and collections process generally resides with the applicable local branch, although in the future, we may direct borrowers to remit payments through one or more lockboxes.
These supervisors have significant experience with our company and within our industry and would be difficult to replace. If we lose a district supervisor to a competitor, we could also be at risk of losing other employees and customers. A nationwide labor shortage may impede our ability to identify and hire new employees.
These supervisors have significant experience with our company and within our industry and would be difficult to replace. If we lose a district supervisor to a competitor, we could also be at risk of losing other employees and customers.
We intend to continue our growth strategy, which is based on opening and acquiring branches in existing and new markets, introducing new products and channels, and increasing the finance receivable portfolios of our existing branches.
We face significant risks in implementing our growth strategy, some of which are outside of our control. We intend to continue our growth strategy, which is based on opening and acquiring branches in existing and new markets, introducing new products and channels, and increasing the finance receivable portfolios of our existing branches.
Our future success will depend, in part, on our ability to address the needs of our customers by using technology to provide products and services that will satisfy customer demand for convenience, as well as to create additional efficiencies in our Regional Management Corp. | 2024 Annual Report on Form 10-K | 24 operations.
Our future success will depend, in part, on our ability to address the needs of our customers by using technology to provide products and services that will satisfy customer demand for convenience, as well as to create additional efficiencies in our operations.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 33 Due to the highly regulated nature of the consumer finance industry, we are required to comply with a wide array of federal, state, and local laws and regulations that affect, among other things, the manner in which we conduct our origination and servicing operations.
Due to the highly regulated nature of the consumer finance industry, we are required to comply with a wide array of federal, state, and local laws and regulations that affect, among other things, the manner in which we conduct our origination and servicing operations.
In addition, if confidential customer information or information belonging to our business partners is misappropriated from our computer systems, we could be sued by those who assert that we did not take adequate precautions to safeguard our systems and confidential data belonging to our customers or business partners, which could subject us to liability and result in significant legal fees and expenses in defending these claims.
In addition, if confidential customer information or information belonging to our business partners is misappropriated from our computer systems, we could be sued by those who assert that we did not take adequate precautions to safeguard our systems and confidential data belonging to our customers or business partners, which could subject us Regional Management Corp. | 2025 Annual Report on Form 10-K | 25 Table of Contents to liability and result in significant legal fees and expenses in defending these claims.
Lastly, there is an inherent risk that a portion of the retail installment loans that we hold will be subject to certain claims or defenses that the borrower may assert against the originator of Regional Management Corp. | 2024 Annual Report on Form 10-K | 20 the contract and, by extension, us as the holder of the contract.
Lastly, there is an inherent risk that a portion of the retail installment loans that we hold will be subject to certain claims or defenses that the borrower may assert against the originator of the contract and, by extension, us as the holder of the contract.
In addition, elevated interest rates increase our cost of capital by influencing the amount of interest we pay on our senior revolving credit facility, our revolving warehouse credit facilities, or any other floating interest rate obligations that we may incur, which would increase our operating costs and decrease our operating margins.
Regional Management Corp. | 2025 Annual Report on Form 10-K | 32 Table of Contents In addition, elevated interest rates increase our cost of capital by influencing the amount of interest we pay on our senior revolving credit facility, our revolving warehouse credit facilities, or any other floating interest rate obligations that we may incur, which would increase our operating costs and decrease our operating margins.
Economic conditions may also be impacted by localized weather events and environmental disasters or adverse impacts from public health crises, epidemics, or pandemics. Social factors include changes in consumer confidence levels and attitudes toward incurring debt and changing attitudes regarding the stigma of personal bankruptcy.
Economic conditions may also be impacted by localized weather events and environmental disasters or adverse impacts from public health crises, epidemics, or pandemics. Social Regional Management Corp. | 2025 Annual Report on Form 10-K | 19 Table of Contents factors include changes in consumer confidence levels and attitudes toward incurring debt and changing attitudes regarding the stigma of personal bankruptcy.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 36 On March 7, 2023, the CFPB provided the Company with Notice that it sought to establish supervisory authority over the Company pursuant to section 1024(a)(1)(C) of the Consumer Financial Protection Act of 2010.
On March 7, 2023, the CFPB provided the Company with Notice that it sought to establish supervisory authority over the Company pursuant to section 1024(a)(1)(C) of the Consumer Financial Protection Act of 2010.
If in any legal proceeding we incur liability or defense costs that exceed our insurance coverage or that are not within the scope of our insurance coverage, it could have a material adverse effect on our business, financial condition, and results of operations.
If in any legal proceeding we incur liability or defense costs that exceed our insurance coverage or that are not within the scope of our insurance coverage, it could have a material adverse effect on our business, financial condition, and results of operations. Current and proposed regulations related to consumer privacy, data protection, and information security could increase our costs.
Depending on the nature and scope of a violation, fines and other penalties for noncompliance of applicable Regional Management Corp. | 2024 Annual Report on Form 10-K | 34 requirements could be significant and could have a material adverse effect on our business, financial condition, and results of operations.
Depending on the nature and scope of a violation, fines and other penalties for noncompliance of applicable requirements could be significant and could have a material adverse effect on our business, financial condition, and results of operations.
Maintaining the adequacy of our allowance for credit losses may require significant and unanticipated changes in our provisions for credit losses, which would materially affect our results of operations.
As of December 31, 2025, our allowance for credit losses was $220.9 million. Maintaining the adequacy of our allowance for credit losses may require significant and unanticipated changes in our provisions for credit losses, which would materially affect our results of operations.
We have a senior revolving credit facility committed through September 2025 that allows us to borrow up to $355.0 million, assuming we are in compliance with a number of covenants and conditions.
We have a senior revolving credit facility committed through August 2028 that allows us to borrow up to $355.0 million (with an accordion provision that can expand up to $420.0 million), assuming we are in compliance with a number of covenants and conditions.
This results in increased due diligence and ongoing monitoring of third-party vendor relationships, thus increasing the scope of Regional Management Corp. | 2024 Annual Report on Form 10-K | 37 management involvement and decreasing the benefit that we receive from using third-party vendors.
This results in increased due diligence and ongoing monitoring of third-party vendor relationships, thus increasing the scope of management involvement and decreasing the benefit that we receive from using third-party vendors.
Servicer defaults include, but are not limited to, the failure of the Servicer to make any payment, transfer, or deposit in accordance with applicable securitization documents; breaches of representations, warranties, or certifications made by the Servicer under applicable securitization documents; and the occurrence of certain insolvency events with respect to the Servicer.
Regional Management Corp. | 2025 Annual Report on Form 10-K | 31 Table of Contents Servicer defaults include, but are not limited to, the failure of the Servicer to make any payment, transfer, or deposit in accordance with applicable securitization documents; breaches of representations, warranties, or certifications made by the Servicer under applicable securitization documents; and the occurrence of certain insolvency events with respect to the Servicer.
Although many of the regulations implementing portions of the Dodd-Frank Act have been promulgated, we are still unable to predict how this significant legislation may be interpreted and enforced or the full extent to which implementing regulations and supervisory policies may affect it.
Regional Management Corp. | 2025 Annual Report on Form 10-K | 37 Table of Contents Although many of the regulations implementing portions of the Dodd-Frank Act have been promulgated, we are still unable to predict how this significant legislation may be interpreted and enforced or the full extent to which implementing regulations and supervisory policies may affect it.
Financial regulatory reform has created uncertainty and could negatively impact our business, financial condition, and results of operations. In response to the financial crisis in 2008, the Dodd-Frank Act was signed into law on July 21, 2010.
Regional Management Corp. | 2025 Annual Report on Form 10-K | 36 Table of Contents Financial regulatory reform has created uncertainty and could negatively impact our business, financial condition, and results of operations. In response to the financial crisis in 2008, the Dodd-Frank Act was signed into law on July 21, 2010.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 30 Our securitizations may expose us to financing and other risks, and there can be no assurance that we will be able to access the securitization market in the future, which may require us to seek more costly financing.
Our securitizations may expose us to financing and other risks, and there can be no assurance that we will be able to access the securitization market in the future, which may require us to seek more costly financing.
It has also criticized and/or penalized debt collectors for, among other things, impermissible collection tactics, attempting to collect debts that are no longer valid, misrepresenting the amount of the debt, not having sufficient documentation to verify the validity or amount of the debt, and failing to obtain or maintain proper licenses.
In the past, the CFPB has criticized and/or penalized sellers of debt for insufficient documentation to support and verify the validity or amount of the debt as well as debt collectors for impermissible collection tactics, attempting to collect debts that are no longer valid, misrepresenting the amount of the debt, not having sufficient documentation to verify the validity or amount of the debt, and failing to obtain or maintain proper licenses.
Most of our loan portfolio is secured, but a significant portion of such security interests have not been and will not be perfected, which means that we cannot be certain that such security interests will be given first priority over other creditors.
Regional Management Corp. | 2025 Annual Report on Form 10-K | 20 Table of Contents Most of our loan portfolio is secured, but a significant portion of such security interests have not been and will not be perfected, which means that we cannot be certain that such security interests will be given first priority over other creditors.
Such training includes critical aspects of state and federal regulatory compliance, cash handling, account management, and customer relations. Although we have standardized employee manuals and online training modules, we primarily rely on our district supervisors, with oversight by our state vice presidents, branch auditors, and headquarters personnel, to train and supervise our branch employees, rather than centralized training programs.
Although we have standardized employee manuals and online training modules, we primarily rely on our district supervisors, with oversight by our state vice presidents, branch auditors, and headquarters personnel, to train and supervise our branch employees, rather than centralized training programs.
If any of these events, risks, or uncertainties were to occur or materialize, it could have a material adverse effect on our business, financial condition, and results of operations and cash flows.
Regional Management Corp. | 2025 Annual Report on Form 10-K | 21 Table of Contents If any of these events, risks, or uncertainties were to occur or materialize, it could have a material adverse effect on our business, financial condition, and results of operations and cash flows.
Pandemics, epidemics, and similar public health crises could adversely impact our business, liquidity, financial condition, and results of operations. Our business could be materially and adversely affected by a new pandemic, epidemic, or similar public health crisis, or the public perception of such a crisis.
Regional Management Corp. | 2025 Annual Report on Form 10-K | 26 Table of Contents Pandemics, epidemics, and similar public health crises could adversely impact our business, liquidity, financial condition, and results of operations. Our business could be materially and adversely affected by a new pandemic, epidemic, or similar public health crisis, or the public perception of such a crisis.
As part of our business model, we have purchased and sold, and may in the future purchase and sell, some of our finance receivables, including loans that have been charged-off and loans where the borrower is in default. The CFPB and other regulators recently have significantly increased their scrutiny of debt buyers and sales, especially delinquent and charged-off debt.
As part of our business model, we have purchased and sold, and may in the future purchase and sell, some of our finance receivables, including loans that have been charged-off and loans where the borrower is in default.
In addition, significant assumptions and estimates are involved in determining certain disclosures required under GAAP, including those involving the fair Regional Management Corp. | 2024 Annual Report on Form 10-K | 29 value of our financial instruments.
In addition, significant assumptions and estimates are involved in determining certain disclosures required under GAAP, including those involving the fair value of our financial instruments.
Similarly, given the “decentralized” and largely manual processing of a portion of payment on our loans, the possibility of delay or misdirection of payments is greater than with payments through lockboxes or electronic channels. The ability of our customers to make in-branch payments and any future inability to make in-branch payments may result in additional risks.
Similarly, given the “decentralized” and largely manual processing of a portion of payment on our loans, the possibility of delay or misdirection of payments is greater than with payments through lockboxes or electronic channels.
If we are unable to locate, attract, train, or retain qualified personnel, or if our costs of labor increase significantly, our business, financial condition, and results of operations may be adversely affected.
If we are unable to locate, attract, train, or Regional Management Corp. | 2025 Annual Report on Form 10-K | 38 Table of Contents retain qualified personnel, or if our costs of labor increase significantly, our business, financial condition, and results of operations may be adversely affected.
These provisions could also discourage proxy contests and make it more difficult for you and other stockholders to elect directors of your choosing and to cause us to take other corporate actions you desire.
These provisions could also discourage proxy contests Regional Management Corp. | 2025 Annual Report on Form 10-K | 40 Table of Contents and make it more difficult for you and other stockholders to elect directors of your choosing and to cause us to take other corporate actions you desire.
We may become involved in investigations, examinations, and proceedings by government and self-regulatory agencies, which may result in material adverse consequences to our business, financial condition, and results of operations. From time to time, we may become involved in formal and informal reviews, investigations, examinations, proceedings, and information-gathering requests by federal and state government and self-regulatory agencies.
From time to time, we may become involved in formal and informal reviews, investigations, examinations, proceedings, and information-gathering requests by federal and state government and self-regulatory agencies.
We have 588,865 shares available for issuance under the 2024 Plan as of February 19, 2025. In addition, our Board may recommend in the future that our stockholders approve new stock plans.
We have 465,779 shares available for issuance under the 2024 Plan as of February 17, 2026. In addition, our Board may recommend in the future that our stockholders amend the 2024 Plan or approve a new stock plan.
Net credit losses related to the December 31, 2023 portfolio were impacted by sustained macroeconomic stress on our customers related to elevated inflation and interest rates during 2024. As of December 31, 2024, our allowance for credit losses was $199.5 million.
We had net credit losses of $195.7 million during fiscal year 2025 that related to our portfolio as of December 31, 2024. Net credit losses related to the December 31, 2024 portfolio were impacted by sustained macroeconomic stress on our customers related to elevated inflation and interest rates during 2025.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 21 A reduction in demand for our products and a failure by us to adapt to such reduction could adversely affect our business and results of operations.
A reduction in demand for our products and a failure by us to adapt to such reduction could adversely affect our business and results of operations.
These sales, or the possibility that these sales may occur, also might make it more difficult for us to issue equity securities in the future at a time and at a price that we deem appropriate.
These sales, or the possibility that these sales may occur, also might make it more difficult for us to issue equity securities in the future at a time and at a price that we deem appropriate. Anti-takeover provisions in our charter documents and applicable state law might discourage or delay acquisition attempts for us that you might consider favorable.
We expect that new technologies and business processes applicable to the consumer finance industry will continue to emerge, and these new technologies and business processes may be more efficient than those that we currently use.
We expect that new Regional Management Corp. | 2025 Annual Report on Form 10-K | 24 Table of Contents technologies and business processes applicable to the consumer finance industry will continue to emerge, and these new technologies and business processes may be more efficient than those that we currently use.
We use convenience checks to seed new branch openings and to attract new customers to existing branches in our geographic footprint. In 2023 and 2024, loans initiated through convenience checks represented 27.3% and 27.4%, respectively, of the value of our originated installment loans.
We use convenience checks to seed new branch openings and to attract new customers to existing branches in our geographic footprint. In 2024 and 2025, loans initiated through convenience checks represented 27.4% and 26.2%, Regional Management Corp. | 2025 Annual Report on Form 10-K | 18 Table of Contents respectively, of the value of our originated installment loans.
We have experienced substantial growth in recent years, increasing the size of our finance receivable portfolio from $1.1 billion as of December 31, 2019 to $1.9 billion at the end of 2024, a compound annual growth rate of 10.8%. We intend to continue our growth strategy in the future.
We have experienced substantial growth over the years, increasing the size of our finance receivable portfolio from $1.1 billion as of December 31, 2020 to $2.1 billion at the end of 2025, a CAGR of 13.5%. We intend to continue our growth strategy in the future.
The CFPB is also authorized to pursue administrative proceedings or litigation for violations of federal consumer financial laws.
In April 2025, the CFPB closed its examination of us without any adverse finding. The CFPB is also authorized to pursue administrative proceedings or litigation for violations of federal consumer financial laws.
Many of our stakeholders possess increased interest in our environmental, social, and governance responsibilities. Our absolute and relative progress, or lack thereof, on environmental, social, and governance matters, along with our disclosure (or lack of disclosure) related thereto, could impact our reputation, brand, and the willingness of individuals and institutions to hold our common stock.
Our absolute and relative progress, or lack thereof, on environmental, social, and governance matters, along with our disclosure (or lack of disclosure) related thereto, could impact our reputation, brand, and the willingness of individuals and institutions to hold our common Regional Management Corp. | 2025 Annual Report on Form 10-K | 33 Table of Contents stock.
Our risk management policies, Regional Management Corp. | 2024 Annual Report on Form 10-K | 28 procedures, and techniques may not be sufficient to identify all of the risks we are exposed to, mitigate the risks we have identified, or identify additional risks to which we may become subject in the future.
Our risk management policies, procedures, and techniques may not be sufficient to identify all of the risks we are exposed to, mitigate the risks we have identified, or identify additional risks to which we may become subject in the future. We may be unsuccessful in maintaining effective internal controls over financial reporting and disclosure controls and procedures.
The amount outstanding thereunder was $219.3 million ($217.8 million of outstanding debt and $1.6 million of interest payable) as of December 31, 2024, and we had $137.2 million of unused capacity on the credit facility (subject to certain covenants and conditions) at that time.
The amount outstanding thereunder was $188.6 million ($187.4 million of outstanding debt and $1.2 million of interest payable) as of December 31, 2025, and we had $167.6 million of unused capacity on the credit facility (subject to certain covenants Regional Management Corp. | 2025 Annual Report on Form 10-K | 30 Table of Contents and conditions) at that time.
In addition, pursuant to our operations policies and procedures, exceptions to the general underwriting criteria can be approved by central underwriting employees and certain other senior employees. We train our employees individually onsite in the branch or at a centralized location and through online training modules to make loans that conform to our underwriting standards.
We rely on certain inputs and verifications in the underwriting process to be performed by individual personnel at the branch level or a centralized location. In addition, pursuant to our operations policies and procedures, exceptions to the general underwriting criteria can be approved by central underwriting employees and certain other senior employees.
As a result, any compromise of security of our computer systems or cyber-attack could have a material adverse effect on our business, financial condition, and results of operations.
As a result, any compromise of security of our computer systems or cyber-attack could have a material adverse effect on our business, financial condition, and results of operations. As part of our business, and subject to applicable privacy laws, we may share confidential customer information and proprietary information with vendors, service providers, and business partners.
It remains uncertain if the Federal Reserve Board will continue to lower interest rates in 2025, and there is no guarantee that the Federal Reserve Board may not raise interest rates in the future depending on economic conditions. During an economic downturn or recession, credit losses in the financial services industry generally increase and demand for credit products often decreases.
The Federal Reserve Board lowered interest rates in 2024 and 2025; however, it remains uncertain if the Federal Reserve Board will continue to lower interest rates in 2026. There is also no guarantee that the Federal Reserve Board may not raise interest rates in the future depending on economic conditions.
For example, in 2019, bills were Regional Management Corp. | 2024 Annual Report on Form 10-K | 35 introduced to Congress that sought to prohibit the practice of directly mailing convenience checks to potential borrowers and extend the Military Lending Act’s consumer protections to all consumers, including a 36 percent interest rate cap on all consumer loans.
For example, bills have been introduced to Congress in the past that sought to prohibit the practice of directly mailing convenience checks to potential borrowers and place a 36 percent interest rate cap on all consumer loans.
Together with the special purpose entities, we may be required to repurchase the Receivables if a representation or warranty is later determined to be inaccurate. In such a case, we will be required to pay a repurchase price for the release of the affected Receivables.
In such a case, we will be required to pay a repurchase price for the release of the affected Receivables.
The success of a branch depends significantly on the manager overseeing its operations and on our ability to enforce our underwriting standards and implement controls over branch operations. Recruiting suitable managers for new branches can be challenging, particularly in remote areas and in areas where we face significant competition.
The success of a branch depends significantly on the manager overseeing its operations and on our ability to enforce our underwriting standards and implement controls over branch operations.
The CFPB has the authority to write regulations under federal consumer financial protection laws, and to enforce those laws against and examine large financial institutions for compliance.
The CFPB also has broad rulemaking and enforcement authority over providers of credit, savings, and payment services and products and authority to prevent “unfair, deceptive or abusive” practices. The CFPB has the authority to write regulations under federal consumer financial protection laws, and to enforce those laws against and examine large financial institutions for compliance.
In recent years, the U.S. economy has undergone a period of rapid change and significant uncertainty, driven in part by elevated inflation and interest rates, as well as changing U.S. consumer spending patterns. Inflation hit a 40-year high in June 2022 at 9.1%.
In recent years, the U.S. economy has undergone a period of rapid change and significant uncertainty, driven in part by elevated inflation and interest rates, as well as changing U.S. consumer spending patterns. While inflation has decreased in recent years to 2.7% for the year ended December 31, 2025, it remains above the Federal Reserve Board's target of 2.0%.
Additionally, Congress, the states, and regulatory agencies could further regulate the consumer credit industry in ways that make it more difficult for us to conduct business. Further, changes in the regulatory application or judicial interpretation of the laws and regulations applicable to financial institutions also could impact the manner in which we conduct our business.
Further, changes in the regulatory application or judicial interpretation of the laws and regulations applicable to financial institutions also could impact the manner in which we conduct our business. The regulatory environment in which financial institutions operate has become increasingly complex and robust.
Declining asset values, defaults on consumer loans, and the lack of market and investor confidence, Regional Management Corp. | 2024 Annual Report on Form 10-K | 32 as well as other factors, all combine to decrease liquidity during an economic downturn.
During an economic downturn or recession, credit losses in the financial services industry generally increase and demand for credit products often decreases. Declining asset values, defaults on consumer loans, and the lack of market and investor confidence, as well as other factors, all combine to decrease liquidity during an economic downturn.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest change“Risk Factors” for information about our cybersecurity risks. Regional Management Corp. | 2024 Annual Report on Form 10-K | 41
Biggest change“Risk Factors” for information about our cybersecurity risks. Regional Management Corp. | 2025 Annual Report on Form 10-K | 42 Table of Contents

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeITEM 2. PR OPERTIES. Our headquarters operations are located in an approximately 51,700 square foot leased facility in Greer, South Carolina, a town located outside of Greenville, South Carolina. As of February 19, 2025, each of our 348 branches, which are located in 19 states throughout the United States, is leased under a fixed-term lease agreement.
Biggest changeITEM 2. PR OPERTIES. Our headquarters operations are located in an approximately 51,700 square foot leased facility in Greer, South Carolina, a town located outside of Greenville, South Carolina. As of February 17, 2026, each of our 354 branches, which are located in 19 states throughout the United States, is leased under a fixed-term lease agreement.
Our branches have an average branch size of approximately 1,950 square feet. In the opinion of management, our properties have been well-maintained, are in sound operating condition, and contain all equipment and facilities necessary to operate at present levels. We believe that all of our facilities are suitable and adequate for our present purposes.
Our branches have an average branch size of approximately 1,997 square feet. In the opinion of management, our properties have been well-maintained, are in sound operating condition, and contain all equipment and facilities necessary to operate at present levels. We believe that all of our facilities are suitable and adequate for our present purposes.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe following table sets forth the dividends declared and paid for the periods indicated: Period Declaration Date Record Date Payment Date Dividends Declared Per Common Share 1Q 24 February 7, 2024 February 22, 2024 March 14, 2024 $ 0.30 2Q 24 May 1, 2024 May 22, 2024 June 12, 2024 0.30 3Q 24 July 31, 2024 August 21, 2024 September 12, 2024 0.30 4Q 24 November 6, 2024 November 21, 2024 December 11, 2024 0.30 Total $ 1.20 On February 5, 2025, the Board declared a quarterly dividend of $0.30, payable on March 13, 2025, to stockholders of record on February 20, 2025.
Biggest changeThe following table sets forth the dividends declared and paid for the periods indicated: Period Declaration Date Record Date Payment Date Dividends Declared Per Common Share Dividends Paid (in thousands) 1Q 25 February 5, 2025 February 20, 2025 March 13, 2025 $ 0.30 $ 3,152 2Q 25 April 30, 2025 May 21, 2025 June 11, 2025 0.30 2,843 3Q 25 July 30, 2025 August 20, 2025 September 10, 2025 0.30 2,773 4Q 25 November 5, 2025 November 25, 2025 December 16, 2025 0.30 2,717 Total $ 1.20 $ 11,485 On February 4, 2026, the Board declared a quarterly dividend of $0.30 per share, payable on March 12, 2026, to stockholders of record on February 19, 2026.
Our senior revolving credit facility includes a provision restricting our ability to pay dividends on our common stock based upon, among other things, our interest coverage ratio and hypothetical availability under the credit facility. Likewise, certain of our credit facilities restrict certain of our wholly owned subsidiaries from paying dividends to us, subject to certain exceptions.
Our senior revolving credit facility also includes a provision restricting our ability to pay dividends on our common stock based upon, among other things, our interest coverage ratio and hypothetical availability under the credit facility. Likewise, certain of our credit facilities restrict certain of our wholly owned subsidiaries from paying dividends to us, subject to certain exceptions.
The graph assumes that $100 was invested at the market close on December 31, 2019, in the common stock of the Company, the NYSE Composite Index, and the NYSE Financial Index, and data for each assumes reinvestments of dividends. The stock price performance of the following graph is not necessarily indicative of future stock price performance.
The graph assumes that $100 was invested at the market close on December 31, 2020, in the common stock of the Company, the NYSE Composite Index, and the NYSE Financial Index, and data for each assumes reinvestments of dividends. The stock price performance of the following graph is not necessarily indicative of future stock price performance.
Non-Affiliate Ownership For purposes of calculating the aggregate market value of shares of our common stock held by non-affiliates, as set forth on the cover page of this Annual Report on Form 10-K, we have assumed that all outstanding shares are held by non-affiliates, except for shares held by each of our executive officers, directors, and 5% or greater stockholders as of June 28, 2024.
Non-Affiliate Ownership For purposes of calculating the aggregate market value of shares of our common stock held by non-affiliates, as set forth on the cover page of this Annual Report on Form 10-K, we have assumed that all outstanding shares are held by non-affiliates, except for shares held by each of our executive officers, directors, and 5% or greater stockholders as of June 30, 2025.
The following graph shows a comparison of the cumulative total return for our common stock, the NYSE Composite Index, and the NYSE Financial Index for the five years ended December 31, 2024.
The following graph shows a comparison of the cumulative total return for our common stock, the NYSE Composite Index, and the NYSE Financial Index for the five years ended December 31, 2025.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOC KHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Market Information Our common stock is listed on the NYSE under the symbol “RM.” Holders As of February 19, 2025, there were 14 registered holders of our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOC KHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Market Information Our common stock is listed on the NYSE under the symbol “RM.” Holders As of February 17, 2026, there were 13 registered holders of our common stock.
Because many of the shares of our common stock are held by brokers and other institutions on behalf of stockholders, we are unable to determine the exact number of beneficial stockholders represented by those record holders, but we believe that there were approximately 3,699 beneficial owners of our common stock as of January 15, 2025.
Because many of the shares of our common stock are held by brokers and other institutions on behalf of stockholders, we are unable to determine the exact number of beneficial stockholders represented by those record holders, but we believe that there were approximately 5,360 beneficial owners of our common stock as of February 5, 2026.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 44 Stock Performance Graph This performance graph shall not be deemed “soliciting material” or to be “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that section, and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933.
Stock Performance Graph This performance graph shall not be deemed “soliciting material” or to be “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that section, and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933.
The following table provides information regarding our share repurchase transactions during the three months ended December 31, 2024: Issuer Purchases of Equity Securities Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program* October 1, 2024 – October 31, 2024 — $ — — $ — November 1, 2024 – November 30, 2024 — — — $ — December 1, 2024 – December 31, 2024 104,542 33.83 104,542 $ 26,463,154 Total 104,542 $ 33.83 104,542 Regional Management Corp. | 2024 Annual Report on Form 10-K | 43 * On December 2, 2024, we announced that our Board had authorized the repurchase of up to $30.0 million of our outstanding shares of common stock.
The following table provides information regarding our share repurchase transactions during the three months ended December 31, 2025: Issuer Purchases of Equity Securities Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (1) October 1, 2025 – October 31, 2025 91,398 $ 38.73 91,398 $ 6,459,851 November 1, 2025 – November 30, 2025 105,601 37.50 105,601 $ 32,500,040 December 1, 2025 – December 31, 2025 — — — $ 32,500,040 Total 196,999 $ 38.07 196,999 Regional Management Corp. | 2025 Annual Report on Form 10-K | 44 Table of Contents (1) On December 2, 2024, we announced that our Board had authorized the repurchase of up to $30.0 million of our outstanding shares of common stock.
Our Board may take into account general and economic conditions; our financial condition and results of operations; our available cash and current and anticipated cash needs; capital requirements; contractual, legal, tax, and regulatory restrictions and implications on the payment of cash dividends by us to our stockholders or by our subsidiaries to us; and such other factors as our Board may deem relevant.
Our Board may take into account general and economic conditions; our financial condition and results of operations; our available cash and current and anticipated cash needs; capital requirements; contractual, legal, tax, and regulatory restrictions and implications; and such other factors as our Board may deem relevant in making these decisions.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 45
Regional Management Corp. | 2025 Annual Report on Form 10-K | 45 Table of Contents
The authorization was effective immediately and extends through December 31, 2026. The declaration, amount, and payment of any future cash dividends on shares of common stock and/or repurchases of common stock will be at the discretion of our Board.
The repurchase program does not obligate the Company to purchase any particular number of shares and may be suspended, modified, or discontinued at any time without prior notice. The declaration, amount, and payment of any future cash dividends on shares of common stock and/or repurchases of common stock will be at the discretion of our Board.
Added
The authorization was effective immediately and extended through December 31, 2026. On November 5, 2025, we announced that our Board had approved a $30.0 million increase in the amount authorized under the stock repurchase program announced in December 2024, from $30.0 million to $60.0 million. The authorization was effective immediately and extends through June 30, 2027.
Added
Share repurchases under the stock repurchase program may be made in the open market at prevailing market prices, through privately negotiated transactions, or through other structures in accordance with applicable federal securities laws, at times and in amounts as the Company’s management deems appropriate.
Added
The timing and the amount of any common stock repurchases will be determined by the Company’s management based on its evaluation of market conditions, the Company’s liquidity needs, legal and contractual requirements and restrictions (including covenants in the Company’s credit agreements), share price, and other factors.
Added
Repurchases of common stock may be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe following discussion and analysis should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements and the related notes that appear in Part II, Item 8, “Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.
Biggest changeAn index to our management’s discussion and analysis follows: Page Forward-Looking Statements 47 Overview 47 Outlook 48 Factors Affecting Our Results of Operations 48 Components of Results of Operations 49 Results of Operations 51 Comparison of December 31, 2025, versus December 31, 2024 51 Comparison of the Year Ended December 31, 2025, versus the Year Ended December 31, 2024 51 Comparison of the Year Ended December 31, 2024, versus the Year Ended December 31, 2023 54 Liquidity and Capital Resources 54 Critical Accounting Policies and Estimates 56 Forward-Looking Statements The following discussion and analysis should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements and the related notes that appear in Part II, Item 8, “Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.
We source our loans through our branches, centrally-managed direct mail program, digital partners, and our consumer website. The majority of our loans, regardless of origination channel, are serviced through our branches. Increasing the number of loans per branch and growing our state footprint allows us to increase the number of customers we are able to serve.
We source our loans through our branches, centrally-managed direct mail program, digital partners, and consumer website. The majority of our loans, regardless of origination channel, are serviced through our branches. Increasing the number of loans per branch and growing our state footprint allows us to increase the number of customers we are able to serve.
Direct costs included in insurance income, net are claims paid, claims reserves, ceding fees, and premium taxes paid. We do not allocate to insurance income, net, any other head office or branch administrative costs associated with management of insurance operations, management of our captive insurance company, marketing and selling insurance products, legal and compliance review, or internal audits.
Direct costs included in insurance income, net are claims paid, claims reserves, ceding fees, and premium taxes paid. We do not allocate to insurance income, net, any other head office or branch administrative costs associated with management of insurance operations, management of our captive insurance company, marketing and selling insurance products, legal and compliance review, or internal audits. Other Income.
Our interest expense consists primarily of paid and accrued interest for debt, unused line fees, and amortization of debt issuance costs on debt. Income Taxes. Income taxes consist of state and federal income taxes.
Our interest expense consists primarily of paid and accrued interest for debt, unused line fees, and amortization of debt issuance costs. Income Taxes. Income taxes consist of state and federal income taxes.
Therefore, this hypothetical analysis is not intended to represent our expectation of changes in our estimate of expected credit losses due to a change in the macroeconomic environment, nor does it consider management’s judgment of other quantitative and qualitative information which could increase or decrease the estimate. Regulatory Developments.
Therefore, this hypothetical analysis is not intended to represent our expectation of changes in our estimate of expected credit losses due to a change in the macroeconomic environment, nor does it consider management’s judgment of other quantitative and qualitative information which could increase or decrease the estimate.
Our dividend payments may change from time to time, and the Board may choose not to continue to declare dividends in the future. In December 2024, we announced that the Board had authorized a $30.0 million stock repurchase program. The authorization was effective immediately and extends through December 31, 2026.
Our dividend payments may change from time to time, and the Board may choose not to continue to declare dividends in the future. In December 2024, we announced that our Board had authorized a $30.0 million stock repurchase program. The authorization was effective immediately and extended through December 31, 2026.
Comparison of the Year Ended December 31, 2023, Versus the Year Ended December 31, 2022 For a comparison of our results of operations for the years ended December 31, 2023 and December 31, 2022, see Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (which was filed with the SEC on February 22, 2024), which is incorporated by reference herein.
Comparison of the Year Ended December 31, 2024, Versus the Year Ended December 31, 2023 For a comparison of our results of operations for the years ended December 31, 2024 and December 31, 2023, see Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (which was filed with the SEC on February 21, 2025), which is incorporated by reference herein.
To demonstrate the sensitivity of forecasting macroeconomic conditions, we stressed our macroeconomic model with 10% increased weighting towards slower near-term growth that would have increased our reserves as of December 31, 2024 by $1.8 million. The macroeconomic scenarios are highly influenced by timing, severity, and duration of changes in the underlying economic factors.
To demonstrate the sensitivity of forecasting macroeconomic conditions, we stressed our macroeconomic model with 10% increased weighting towards slower near-term growth that would have increased our reserves as of December 31, 2025 by $1.7 million. The macroeconomic scenarios are highly influenced by timing, severity, and duration of changes in the underlying economic factors.
Our primary sources of revenue are interest and fee income from our loan products, of which interest and fees relating to large and small installment loans are the largest component. In addition to interest and fee income from loans, we derive revenue from optional insurance products purchased by customers of our direct loan products.
Our primary sources of revenue are interest and fee income from our loan products, of which interest and fees relating to large and small installment loans are the largest component. In addition to interest and fee income from loans, we earn revenue from optional insurance products purchased by customers of our loan products.
Our occupancy expenses consist primarily of the cost of renting our facilities, all of which are leased, and the utility, depreciation of leasehold improvements and furniture and fixtures, communication services, data processing, and other non-personnel costs associated with operating our business.
Our occupancy expenses consist primarily of the cost of renting our facilities, all of which are leased, and the utility, depreciation of leasehold improvements and furniture and fixtures, communication and connectivity services, and other non-personnel costs associated with operating our business.
Loan fees are additional charges to the customer and generally are included in the annual percentage rate shown in the Truth in Lending disclosure that we make to our customers. The fees may or may not be refundable to the customer in the event of an early payoff, depending on state law.
Loan fees are additional charges to the customer and generally are included in the APR shown in the Truth in Lending disclosure that we make to our customers. The fees may or may not be refundable to the customer in the event of an early payoff, depending on state law.
As a component of our strategy to manage the interest rate risk associated with future interest payments on our variable-rate debt, a majority of our funding was held at a fixed rate as of December 31, 2024, representing 79% of our total debt. Operating Costs. Our financial results are impacted by the costs of operations and head office functions.
As a component of our strategy to manage the interest rate risk associated with future interest payments on our variable-rate debt, a majority of our funding was held at a fixed rate as of December 31, 2025, representing 84% of our total debt balance. Operating Costs. Our financial results are impacted by the costs of operations and head office functions.
Other Income. Our other income consists primarily of late charges assessed on customers who fail to make a payment within a specified number of days following the due date of the payment. In addition, interest income from restricted cash, commissions earned from the sale of club membership products, and investment income from restricted AFS securities are included in other income.
Our other income consists of late charges assessed on customers who fail to make a payment within a specified number of days following the due date of the payment, interest income from restricted cash, commissions earned from the sale of club membership products, and investment income from restricted AFS securities.
The increase was primarily due to the growth of our loan portfolio. Investing Activities. Investing activities consist of originations and repayments of finance receivables, purchases of intangible assets, and purchases of property and equipment for new and existing branches.
The increase in net cash provided was primarily due to the growth of our loan portfolio. Investing Activities. Investing activities consist of originations and repayments of finance receivables, purchases of intangible assets, and purchases of property and equipment for new and existing branches.
We have proactively diversified our funding over the past few years and continue to maintain a strong liquidity profile. As of December 31, 2024, we had $136.9 million of available liquidity, comprised of unrestricted cash on hand and immediate availability to draw down cash from our revolving credit facilities.
We have proactively diversified our funding over the past few years and continue to maintain a strong liquidity profile. As of December 31, 2025, we had $149.2 million of available liquidity, comprised of unrestricted cash on hand and immediate availability to draw down cash from our revolving credit facilities.
Overview We are a diversified consumer finance company that provides installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. As of December 31, 2024, we operate under the name “Regional Finance” online and in 344 branch locations in 19 states across the United States, serving 575,400 active accounts.
Overview We are a diversified consumer finance company that provides installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. As of December 31, 2025, we operate under the name “Regional Finance” online and in 353 branch locations in 19 states across the United States, serving 590,800 active accounts.
In addition, we had $466.2 million of unused capacity on our revolving credit facilities (subject to the borrowing base) as of December 31, 2024. We believe our liquidity position provides substantial runway to support the fundamental operations of our business and to fund future growth.
In addition, we had $511.4 million of unused capacity on our revolving credit facilities (subject to the borrowing base) as of December 31, 2025. We believe our liquidity position provides substantial runway to support the fundamental operations of our business and to fund future growth.
As we consider our growth rate, we not only consider the health of the consumer, the strength of the economy, and the credit performance of our portfolio, we also balance our commitment to deliver strong short-term results for investors while also generating the portfolio growth that will fuel our success and returns over the long-term.
Our growth decisions consider consumer health, strength of the economy, and the credit performance of our portfolio. We balance our commitment to deliver strong short-term results while also generating the portfolio growth that will fuel our success and returns over the long-term.
The allowance for credit losses as a percentage of finance receivables decreased to 10.5% as of December 31, 2024, from 10.6% as of December 31, 2023 due to changes in estimated future macroeconomic impacts on credit losses.
The allowance for credit losses as a percentage of net finance receivables decreased to 10.3% as of December 31, 2025, from 10.5% as of December 31, 2024, primarily due to changes in estimated future macroeconomic impacts on credit losses.
Our general and administrative expenses increased $4.6 million, or 1.9%, to $247.7 million in 2024 from $243.1 million in 2023. The absolute dollar increase in general and administrative expenses is explained in greater detail below. Personnel.
Our general and administrative expenses increased $9.9 million, or 4.0%, to $257.6 million in 2025 from $247.7 million in 2024. The absolute dollar increase in general and administrative expenses is explained in greater detail below. Personnel.
Additionally, we often experience increases in other expenses including legal expenses, bank fees, and certain professional expenses as we grow our loan portfolio and expand our market footprint. Operating Expense Ratio. Our operating expense ratio decreased by 0.4% to 13.8% during 2024, from 14.2% during 2023.
Additionally, we often experience increases in other expenses including legal expenses, bank fees, and certain professional expenses as we grow our loan portfolio and expand our market footprint. Operating Expense Ratio. Our operating expense ratio decreased to 13.1% during 2025, from 13.8% during 2024.
Our wholly owned subsidiary, RMC Reinsurance, Ltd., is required to maintain reserves against life insurance policies ceded to it, as determined by the ceding company. These reserves are comprised of restricted cash and restricted AFS investments, which totaled $0.7 million and $21.7 million, respectively, as of December 31, 2024.
Our wholly owned subsidiary, RMC Reinsurance, Ltd., is required to maintain reserves against life insurance policies ceded to it, as determined by the ceding company. These reserves are comprised of restricted cash and restricted AFS investments. As of December 31, 2025, the reserves totaled $24.4 million.
Comparison of December 31, 2024, Versus December 31, 2023 The following discussion and table describe the changes in finance receivables by product type: • Large Loans (>$2,500) – Large loans outstanding increased by $62.6 million, or 4.9%, to $1.3 billion at December 31, 2024, from $1.3 billion at December 31, 2023.
Comparison of December 31, 2025, Versus December 31, 2024 The following discussion and table describe the changes in finance receivables by product type for the periods indicated: • Large Loans (>$2,500) – Large loans outstanding increased by $256.4 million, or 19.2%, to $1.6 billion at December 31, 2025, from $1.3 billion at December 31, 2024.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 48 The primary underlying factors driving the provision for credit losses for each loan type are our underwriting standards, delinquency trends, the general economic conditions in the areas in which we conduct business, loan portfolio growth, and the effectiveness of our servicing and collection efforts.
The primary underlying factors driving the provision for credit losses for each loan type are our underwriting standards, delinquency trends, the general economic conditions in the areas in which we conduct business, loan portfolio growth, and the effectiveness of our servicing and collection efforts.
For additional information regarding our business operations, see Part I, Item 1, “Business.” Regional Management Corp. | 2024 Annual Report on Form 10-K | 47 Outlook We continually assess the macroeconomic environment in which we operate in order to appropriately and timely adapt to current market conditions.
For additional information regarding our business operations, see Part I, Item 1, “Business.” Outlook We continually assess the macroeconomic environment in which we operate in order to adapt appropriately and timely to current market conditions.
See Note 4, “Finance Receivables, Credit Quality Information, and Allowance for Credit Losses” of the Notes to Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data,” for additional information regarding our allowance for credit losses. Net Credit Losses. Net credit losses decreased $11.3 million, or 5.4%, to $200.1 million in 2024, from $211.4 million in 2023.
See Note 4, “Finance Receivables, Credit Quality Information, and Allowance for Credit Losses” of the Notes to Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data,” for additional information regarding our allowance for credit losses. Net Credit Losses. Net credit losses increased $23.9 million, or 12.0%, to $224.0 million in 2025, from $200.1 million in 2024.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 50 Results of Operations The following table summarizes our results of operations, both in dollars and as a percentage of average net finance receivables: Year Ended December 31, 2024 2023 2022 Dollars in thousands Amount % of Average Net Finance Receivables Amount % of Average Net Finance Receivables Amount % of Average Net Finance Receivables Revenue Interest and fee income $ 528,894 29.6 % $ 489,698 28.6 % $ 450,854 29.5 % Insurance income, net 40,695 2.3 % 44,529 2.6 % 43,502 2.8 % Other income 18,914 1.0 % 17,172 1.0 % 12,831 0.8 % Total revenue 588,503 32.9 % 551,399 32.2 % 507,187 33.1 % Expenses Provision for credit losses 212,200 11.9 % 220,034 12.9 % 185,115 12.1 % Personnel 153,789 8.6 % 156,872 9.2 % 141,243 9.2 % Occupancy 25,823 1.4 % 25,029 1.5 % 23,809 1.6 % Marketing 19,006 1.1 % 15,774 0.9 % 15,378 1.0 % Other 49,080 2.7 % 45,444 2.6 % 42,098 2.7 % Total general and administrative 247,698 13.8 % 243,119 14.2 % 222,528 14.5 % Interest expense 74,530 4.2 % 67,463 3.9 % 34,223 2.2 % Income before income taxes 54,075 3.0 % 20,783 1.2 % 65,321 4.3 % Income taxes 12,848 0.7 % 4,825 0.3 % 14,097 1.0 % Net income $ 41,227 2.3 % $ 15,958 0.9 % $ 51,224 3.3 % Information explaining the changes in our results of operations from year-to-year is provided in the following pages.
Regional Management Corp. | 2025 Annual Report on Form 10-K | 50 Table of Contents Results of Operations The following table summarizes our results of operations, both in dollars and as a percentage of average net finance receivables for the periods indicated: Year Ended December 31, 2025 2024 2023 Dollars in thousands Amount % of Average Net Finance Receivables Amount % of Average Net Finance Receivables Amount % of Average Net Finance Receivables Revenue Interest and fee income $ 578,949 29.3 % $ 528,894 29.6 % $ 489,698 28.6 % Insurance income, net 45,573 2.3 % 40,695 2.3 % 44,529 2.6 % Other income 21,076 1.1 % 18,914 1.0 % 17,172 1.0 % Total revenue 645,598 32.7 % 588,503 32.9 % 551,399 32.2 % Expenses Provision for credit losses 245,432 12.4 % 212,200 11.9 % 220,034 12.9 % Personnel 159,637 8.1 % 153,789 8.6 % 156,872 9.2 % Occupancy 28,204 1.4 % 25,823 1.4 % 25,029 1.5 % Marketing 18,551 0.9 % 19,006 1.1 % 15,774 0.9 % Other 51,183 2.7 % 49,080 2.7 % 45,444 2.6 % Total general and administrative 257,575 13.1 % 247,698 13.8 % 243,119 14.2 % Interest expense 84,814 4.3 % 74,530 4.2 % 67,463 3.9 % Income before income taxes 57,777 2.9 % 54,075 3.0 % 20,783 1.2 % Income taxes 13,365 0.6 % 12,848 0.7 % 4,825 0.3 % Net income $ 44,412 2.3 % $ 41,227 2.3 % $ 15,958 0.9 % Information explaining the changes in our results of operations from year-to-year is provided in the following pages.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 57 As finance receivables are originated, provisions for credit losses are recorded in amounts sufficient to maintain an allowance for credit losses at an adequate level to provide for estimated losses over the contractual life of the finance receivables (considering the effect of prepayments).
As finance receivables are originated, provisions for credit losses are recorded in amounts sufficient to maintain an allowance for credit losses at an adequate level to provide for estimated losses over the contractual life of the finance receivables (considering the effect of prepayments).
As we grow our portfolio, we are required to reserve for expected lifetime credit losses at the origination of each loan, which reduces net income. The related revenue benefits are recognized over the life of each loan. Product Mix.
As we grow our portfolio, we are required to reserve for expected lifetime credit losses at the origination of each loan, which reduces net income, while the related revenue benefits are recognized over the life of each loan. This timing difference can weigh on short‑term results during periods of portfolio expansion. Product Mix.
In addition, the revolving period maturities of our securitizations and warehouse credit facilities as of December 31, 2024 (each as described below within “Financing Arrangements and Restricted Cash Reserve Accounts”) ranged from February 2025 to May 2027.
As of December 31, 2025 the revolving period maturities of our securitizations and warehouse credit facilities (each as described below within “Financing Arrangements and Restricted Cash Reserve Accounts”) ranged from May 2026 to October 2027, with the exception of the RMIT 2022-1 securitization, for which the revolving period ended in February 2025.
We continue to seek ways to diversify our funding sources. As of December 31, 2024, we had a funded debt-to-equity ratio of 4.1 to 1.0 and a stockholders’ equity ratio of 18.7%. Cash and cash equivalents decreased to $4.0 million as of December 31, 2024, from $4.5 million as of December 31, 2023.
We continue to seek ways to diversify our funding sources. As of December 31, 2025, we had a funded debt-to-equity ratio of 4.4 to 1.0 and a stockholders’ equity ratio of 17.7%, compared to 4.1 to 1.0 and 18.7%, respectively, as of December 31, 2024.
Insurance income, net decreased $3.8 million, or 8.6%, to $40.7 million in 2024, from $44.5 million in 2023. In both 2024 and 2023, personal property insurance premiums represented the largest component of aggregate earned insurance premiums, and life insurance claims expense represented the largest component of direct insurance expenses.
Insurance income, net increased $4.9 million, or 12.0%, to $45.6 million in 2025, from $40.7 million in 2024. In both 2025 and 2024, personal property insurance premiums represented the largest component of aggregate earned insurance premiums, and life insurance claims expense represented the largest component of direct insurance expenses.
The increase was due to growth in our auto-secured portfolio, the growth of receivables in branches opened during 2023 and 2024, and the transition of small loan customers to large loans. • Small Loans (≤$2,500) – Small loans outstanding increased by $61.2 million, or 12.4%, to $554.7 million at December 31, 2024, from $493.5 million at December 31, 2023.
The increase was due to growth in our auto-secured loan portfolio, the growth of receivables in branches opened during 2024 and 2025, and the transition of small loan customers to large loans. • Small Loans (≤$2,500) – Small loans outstanding decreased by $8.7 million, or 1.6%, to $547.0 million at December 31, 2025, from $555.8 million at December 31, 2024.
This branch optimization is consistent with our omni-channel strategy and builds upon our recent successes in entering new states with a lighter branch footprint, while still providing customers with best-in-class service.
This branch optimization is consistent with our Regional Management Corp. | 2025 Annual Report on Form 10-K | 48 Table of Contents omni-channel strategy and builds upon our recent successes in entering new states with a lighter branch footprint, while still providing customers with best-in-class service.
This included 69.5 thousand large loan convenience checks, representing $199.5 million in net finance receivables. • Small Loans (≤$2,500) – As of December 31, 2024, we had 314.9 thousand small installment loans outstanding, representing $554.7 million in net finance receivables.
This included 82.2 thousand large loan convenience checks, representing $258.0 million in net finance receivables. • Small Loans (≤$2,500) – As of December 31, 2025, we had 301.5 thousand small installment loans outstanding, representing $547.0 million in net finance receivables.
Total revenue increased $37.1 million, or 6.7%, to $588.5 million in 2024, from $551.4 million in 2023. The components of revenue are explained in greater detail below. Interest and Fee Income . Interest and fee income increased $39.2 million, or 8.0%, to $528.9 million in 2024, from $489.7 million in 2023.
Total revenue increased $57.1 million, or 9.7%, to $645.6 million in 2025, from $588.5 million in 2024. The components of revenue are explained in greater detail below. Interest and Fee Income . Interest and fee income increased $50.1 million, or 9.5%, to $578.9 million in 2025, from $528.9 million in 2024.
There can be no assurance that we will be able to secure an extension of the warehouse credit facilities or close additional securitization transactions if and when needed in the future.
We had not exercised our right to redeem the notes of this securitization as of December 31, 2025. There can be no assurance that we will be able to secure an extension of the warehouse credit facilities or close additional securitization transactions if and when needed in the future. Dividends and Stock Repurchases.
The increase in cash provided was the result of an increase in net advances on debt instruments of $34.5 million, partially offset by an increase in payments for debt issuance costs of $3.9 million and an increase in the repurchases of common stock of $3.5 million. Financing Arrangements and Restricted Cash Reserve Accounts.
The net increase in cash provided was primarily due to an increase in net advances on debt instruments of $93.9 million, partially offset by an increase in the repurchases of common stock of $20.4 million. Financing Arrangements and Restricted Cash Reserve Accounts.
The following table summarizes the components of insurance income, net: Insurance Premiums and Direct Expenses for the Year Ended Dollars in thousands December 31, 2024 December 31, 2023 YoY $ B(W) YoY % B(W) Earned premiums $ 57,312 $ 59,830 $ (2,518 ) (4.2 )% Claims, reserves, and certain direct expenses (16,617 ) (15,301 ) (1,316 ) (8.6 )% Insurance income, net $ 40,695 $ 44,529 $ (3,834 ) (8.6 )% Earned premiums during 2024 decreased by $2.5 million, and claims, reserves, and certain direct expenses increased by $1.3 million in each case compared to 2023.
The following table summarizes the components of insurance income, net for the periods indicated: Year Ended December 31, Dollars in thousands 2025 2024 YoY $ B(W) YoY % B(W) Earned premiums $ 58,771 $ 57,312 $ 1,459 2.5 % Claims, reserves, and certain direct expenses (13,198 ) (16,617 ) 3,419 20.6 % Insurance income, net $ 45,573 $ 40,695 $ 4,878 12.0 % Earned premiums during 2025 increased by $1.5 million, and claims, reserves, and certain direct expenses decreased by $3.4 million in each case compared to 2024.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 49 Our personnel expenses are the largest component of our general and administrative expenses and consist primarily of the salaries and wages, overtime, contract labor, relocation costs, incentives, benefits, and related payroll taxes associated with all of our operations and head office employees.
Our general and administrative expenses are comprised of four categories: personnel, occupancy, marketing, and other. Our personnel expenses are the largest component of our general and administrative expenses and consist primarily of the salaries and wages, overtime, contract labor, relocation costs, incentives, benefits, and related payroll taxes associated with all of our operations and head office employees.
Provision for Credit Losses. Provisions for credit losses are charged to income in amounts that we estimate as sufficient to maintain an allowance for credit losses at an adequate level to provide for lifetime expected credit losses on the related finance receivable portfolio.
Regional Management Corp. | 2025 Annual Report on Form 10-K | 49 Table of Contents Provision for Credit Losses. Provisions for credit losses are recorded in amounts that we estimate as sufficient to maintain an allowance for credit losses at an adequate level to provide for lifetime expected credit losses on the related finance receivable portfolio.
From time to time, we have extended the maturity date of and increased the borrowing limits under our senior revolving credit facility. While we have successfully obtained such extensions and increases in the past, there can be no assurance that we will be able to do so if and when needed in the future.
While we have successfully obtained such extensions and increases in the past, there can be no assurance that we will be able to do so if and when needed in the future.
Macroeconomic factors, including, but not limited to, inflationary pressures, higher interest rates, and impacts from current geopolitical events outside the U.S., may affect our business, liquidity, financial condition, and results of operations. Due to moderating inflation and expectations for an improving economic environment, we have prudently increased the growth in our small loan portfolio.
Macroeconomic factors, including, but not limited to, unemployment, inflationary pressures, higher interest rates, tariffs, and impacts from current geopolitical events outside the U.S., may affect our business, liquidity, financial condition, and results of operations. We continue to execute our strategy of growth in our higher-margin small loan portfolio and our high-quality, auto-secured loan portfolio.
The following tables include contractual delinquency balances by aging category and by product: Contractual Delinquency by Aging Dollars in thousands December 31, 2024 December 31, 2023 Current $ 1,590,381 84.0 % $ 1,493,341 84.3 % 1 to 29 days past due 156,312 8.3 % 155,196 8.8 % Delinquent accounts: 30 to 59 days 36,948 1.9 % 34,756 1.9 % 60 to 89 days 35,242 1.9 % 31,212 1.8 % 90 to 119 days 28,085 1.5 % 27,107 1.5 % 120 to 149 days 23,987 1.3 % 15,317 0.9 % 150 to 179 days 21,580 1.1 % 14,481 0.8 % Total delinquency $ 145,842 7.7 % $ 122,873 6.9 % Total net finance receivables $ 1,892,535 100.0 % $ 1,771,410 100.0 % Contractual Delinquency by Product Dollars in thousands December 31, 2024 December 31, 2023 Large loans $ 88,054 6.6 % $ 80,136 6.3 % Small loans 57,595 10.4 % 42,151 8.5 % Retail loans 193 18.1 % 586 15.4 % Total $ 145,842 7.7 % $ 122,873 6.9 % General and Administrative Expenses.
The following tables include delinquency balances by aging category and by product for the periods indicated: Contractual Delinquency by Aging Dollars in thousands December 31, 2025 December 31, 2024 Current $ 1,809,107 84.5 % $ 1,590,381 84.0 % 1 to 29 days past due 169,858 8.0 % 156,312 8.3 % Delinquent accounts: 30 to 59 days 41,235 1.9 % 36,948 1.9 % 60 to 89 days 37,158 1.7 % 35,242 1.9 % 90 to 119 days 30,818 1.5 % 28,085 1.5 % 120 to 149 days 27,765 1.3 % 23,987 1.3 % 150 to 179 days 24,258 1.1 % 21,580 1.1 % Total delinquency $ 161,234 7.5 % $ 145,842 7.7 % Total net finance receivables $ 2,140,199 100.0 % $ 1,892,535 100.0 % Contractual Delinquency by Product Dollars in thousands December 31, 2025 December 31, 2024 Large loans $ 99,956 6.3 % $ 88,054 6.6 % Small loans 61,278 11.2 % 57,788 10.4 % Total $ 161,234 7.5 % $ 145,842 7.7 % General and Administrative Expenses.
The following table sets forth the average net finance receivables balance and average yield for our loan products: Average Net Finance Receivables for the Year Ended Average Yields for the Year Ended Dollars in thousands December 31, 2024 December 31, 2023 YoY % Inc (Dec) December 31, 2024 December 31, 2023 YoY % Inc (Dec) Large loans $ 1,278,683 $ 1,242,529 2.9 % 26.4 % 26.1 % 0.3 % Small loans 507,584 462,116 9.8 % 37.6 % 35.6 % 2.0 % Retail loans 2,214 6,522 (66.1 )% 16.1 % 17.3 % (1.2 )% Total $ 1,788,481 $ 1,711,167 4.5 % 29.6 % 28.6 % 1.0 % Total originations increased to $1.7 billion in 2024, from $1.5 billion in 2023.
The following table sets forth the average net finance receivables balance and interest and fee yield for our loan products for the periods indicated: Year Ended December 31, Year Ended December 31, Dollars in thousands 2025 2024 YoY % Inc (Dec) 2025 2024 YoY Inc (Dec) Large loans $ 1,432,174 $ 1,278,683 12.0 % 26.7 % 26.4 % 0.3 % Small loans 541,363 509,798 6.2 % 36.2 % 37.5 % (1.3 )% Total $ 1,973,537 $ 1,788,481 10.3 % 29.3 % 29.6 % (0.3 )% Total originations increased to $2.0 billion in 2025, from $1.7 billion in 2024.
The following is a summary of our securitizations as of December 31, 2024: Dollars in thousands Issue Amount Debt Balance Effective Interest Rate Restricted Cash Reserves Restricted Cash Collection Revolving Period Maturity Final Maturity Date RMIT 2020-1 $ 180,000 $ 46,769 4.3% $ 1,875 $ 4,849 Sep 2023 Oct 2030 RMIT 2021-1 $ 248,700 $ 101,550 2.7% $ 2,604 $ 9,969 Feb 2024 Mar 2031 RMIT 2021-2 $ 200,000 $ 200,191 2.3% $ 2,083 $ 16,871 Jul 2026 Aug 2033 RMIT 2021-3 $ 125,000 $ 125,202 3.9% $ 1,471 $ 16,698 Sep 2026 Oct 2033 RMIT 2022-1 $ 250,000 $ 250,374 3.6% $ 2,646 $ 21,469 Feb 2025 Mar 2032 RMIT 2024-1 $ 187,305 $ 187,788 6.2% $ 1,078 $ 17,332 May 2027 July 2036 RMIT 2024-2 $ 250,000 $ 250,558 5.3% $ 1,418 $ 22,892 Nov 2026 Dec 2033 RMC Reinsurance.
The following is a summary of our securitizations as of December 31, 2025: Dollars in thousands Issue Amount Debt Balance Effective Interest Rate Restricted Cash Reserves Restricted Cash Collection Revolving Period End Date Maturity Date RMIT 2021-2 $ 200,000 $ 200,192 2.3% $ 2,083 $ 16,263 Jul 2026 Aug 2033 RMIT 2021-3 $ 125,000 $ 125,202 3.9% $ 1,471 $ 16,600 Sep 2026 Oct 2033 RMIT 2022-1 $ 250,000 $ 97,936 4.4% $ 2,646 $ 10,423 Feb 2025 Mar 2032 RMIT 2024-1 $ 187,305 $ 187,788 6.2% $ 1,078 $ 7,390 May 2027 July 2036 RMIT 2024-2 $ 250,000 $ 250,557 5.3% $ 1,418 $ 8,531 Nov 2026 Dec 2033 RMIT 2025-1 $ 265,000 $ 265,585 5.3% $ 1,489 $ 7,910 Mar 2027 Apr 2034 RMIT 2025-2 $ 252,810 $ 253,318 4.8% $ 1,389 $ 8,499 Oct 2027 Nov 2037 RMC Reinsurance.
Marketing expenses increased $3.2 million, or 20.5%, to $19.0 million in 2024, from $15.8 million in 2023 primarily due to increased activity in our direct mail campaigns of $3.3 million to support growth, partially offset by lower digital marketing costs of $0.2 million. Other Expenses.
Marketing expenses decreased $0.5 million, or 2.4%, to $18.6 million in 2025, from $19.0 million in 2024, primarily due to decreased activity in our direct mail campaigns of $0.9 million due to optimization of our framework for direct mail marketing, partially offset by higher digital marketing costs of $0.4 million. Other Expenses.
Our operating expense ratio has improved as we have grown our loan portfolio and controlled expense growth. Interest Expense. Interest expense increased $7.1 million, or 10.5%, to $74.5 million in 2024, compared to $67.5 million in 2023.
Our operating expense ratio has improved as we have grown our loan portfolio and controlled expense growth. Interest Expense. Interest expense increased $10.3 million, or 13.8%, to $84.8 million in 2025, compared to $74.5 million in 2024 primarily due to an increase in the average balance of our debt facilities.
The average balance of our debt facilities increased to $1.4 billion in 2024, from $1.3 billion in 2023. Income Taxes. Income taxes increased $8.0 million, or 166.3%, to $12.8 million in 2024, from $4.8 million in 2023. The increase was primarily due to a $33.3 million increase in income before taxes compared to 2023.
The average balance of our debt facilities increased to $1.5 billion in 2025, from $1.4 billion in 2024. Our cost of funds increased 0.1% to 4.3% during 2025, from 4.2% during 2024. Income Taxes. Income taxes increased $0.5 million, or 4.0%, to $13.4 million in 2025, from $12.8 million in 2024.
Net cash used in investing activities in 2024 was $316.1 million, compared to $278.7 million in 2023, an increase of $37.4 million. The increase was primarily driven by increased originations as we grow our loan portfolio, partially offset by increased repayments of finance receivables. Financing Activities. Financing activities consist of borrowings and payments on our outstanding indebtedness.
Net cash used in investing activities in 2025 was $471.2 million, compared to $315.4 million in 2024, a net increase of $155.8 million. The increase in cash used was primarily driven by increased originations as we grew our loan portfolio, partially offset by increased repayments of finance receivables. Financing Activities.
As of December 31, 2024, we had repurchased 0.1 million shares of common stock at a total cost of $3.5 million. Cash Flow. Operating Activities. Net cash provided by operating activities in 2024 was $269.6 million, compared to $249.2 million provided by operating activities in 2023, an increase of $20.5 million.
As of December 31, 2025, we had repurchased 0.8 million shares of common stock at a total cost of $27.7 million, including commissions and estimated excise taxes. Cash Flow. Operating Activities. Net cash provided by operating activities in 2025 was $309.1 million, compared to $268.9 million in 2024, a net increase of $40.1 million.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 58
Regional Management Corp. | 2025 Annual Report on Form 10-K | 57 Table of Contents
Our effective tax rate increased to 23.8% in 2024, compared to 23.2% in 2023. The increase in the effective tax rate was primarily related to a decrease in the research and development tax credit and offset by decreases related to non-deductible compensation and excess tax benefits related to share-based compensation.
The increase was primarily due to a $3.7 million increase in income before taxes compared to 2024 and offset by decreases related to excess tax benefits of share-based compensation. Our effective tax rate decreased to 23.1% in 2025, compared to 23.8% in 2024.
These debts are supported by the expected cash flows from the underlying collateralized finance receivables. Collections on these finance receivables are remitted to restricted cash collection accounts, which totaled $117.1 million and $109.9 million as of December 31, 2024 and December 31, 2023, respectively. Our debt arrangements also contain various debt covenants.
Collections on these finance receivables are remitted to restricted cash collection accounts, which totaled $81.8 million and $117.1 million as of December 31, 2025 and December 31, 2024, respectively. Our debt arrangements also contain various debt covenants. We were in compliance with all such debt covenants as of December 31, 2025. Revolving Credit Facilities.
Our goal is to consistently grow our finance receivables and to soundly manage our portfolio risk, while providing our customers with attractive and easy-to-understand loan products that serve their varied financial needs. Our products include: • Large Loans (>$2,500) – As of December 31, 2024, we had 259.5 thousand large installment loans outstanding, representing $1.3 billion in net finance receivables.
Our goal is to consistently grow our finance receivables and to soundly manage our portfolio risk, while providing our customers with attractive and easy-to-understand loan products that serve their varied financial needs.
As part of our evaluation, we consider loan portfolio characteristics such as product type, loan size, loan term, internal or external credit scores, delinquency status, geographical location, and vintage. Based on analysis of historical loss experience, we selected the following segmentation: product type, FICO score, and delinquency status.
As part of our evaluation, we consider loan portfolio characteristics such as product type, loan size, loan term, internal or external credit scores, delinquency status, geographical Regional Management Corp. | 2025 Annual Report on Form 10-K | 56 Table of Contents location, and vintage.
Our net credit losses during 2024 were inclusive of an estimated $12.2 million benefit from accelerated charge-offs in the fourth quarter of 2023 attributable to the loan sale that occurred during the fourth quarter of 2023 and further benefited from an improved macroeconomic environment.
The increase was primarily due to higher average net finance receivables for the year ended December 31, 2025. Our net credit losses during the prior year were inclusive of an estimated $12.2 million benefit from accelerated charge-offs in the fourth quarter of 2023 attributable to the fourth quarter 2023 loan sale.
A summary of the future material financial obligations requiring payments as of December 31, 2024 is as follows: Future Material Financial Obligations by Period Dollars in thousands Next Twelve Months Beyond Twelve Months Total Principal payments on debt obligations $ 466,626 $ 1,007,637 $ 1,474,263 Interest payments on debt obligations 65,822 76,813 142,635 Operating lease obligations 11,001 36,728 47,729 Total $ 543,449 $ 1,121,178 $ 1,664,627 Based upon anticipated cash flows, we believe that cash flows from operations and our various financing alternatives will provide sufficient financing for debt maturities and operations over the next twelve months, as well as into the future.
A summary of the future material financial obligations requiring payments as of December 31, 2025 is as follows: Future Material Financial Obligations by Period Dollars in thousands Next Twelve Months Beyond Twelve Months Total Principal payments on debt obligations $ 223,318 $ 1,423,133 $ 1,646,451 Interest payments on debt obligations 57,087 53,757 110,844 Operating lease obligations 12,394 42,569 54,963 Total $ 292,799 $ 1,519,459 $ 1,812,258 Based upon anticipated cash flows, we believe that cash flows from operations and our various financing alternatives will provide sufficient financing for debt maturities and operations over the next twelve months, as well as into the future.
Reductions in revenue reversals from the loan sale that occurred in the fourth quarter of 2023 increased 2024 interest and fee income by an estimated $1.7 million.
The prior year included reductions in revenue reversals of an estimated $1.7 million attributable to the fourth quarter 2023 loan sale.
This included 167.3 thousand small loan convenience checks, representing $260.9 million in net finance receivables. • Retail Loans – As of December 31, 2024, we had 1.0 thousand retail purchase loans outstanding, representing $1.1 million in net finance receivables. • Optional Insurance Products – We offer optional payment and collateral protection insurance to our direct loan customers.
This included 157.7 thousand small loan convenience checks, representing $246.8 million in net finance receivables. • Optional Insurance Products – We offer optional payment and collateral protection insurance to our direct loan customers. Large and small installment loans are our core products and will be the drivers of future growth.
Our debt balance was $1.5 billion as of December 31, 2024 compared to $1.4 billion the prior year-end.
Our unused capacity on our revolving credit facilities (subject to the borrowing base) was $511.4 million and $466.2 million as of December 31, 2025 and the prior year-end, respectively. Our debt balance was $1.7 billion as of December 31, 2025 compared to $1.5 billion as of the prior year-end.
Other income increased $1.7 million, or 10.1%, to $18.9 million in 2024, from $17.2 million in 2023, primarily due to higher late charges of $0.9 million associated with portfolio growth, an increase in sales of our club membership products of $0.6 million, and higher investment income of $0.2 million. Provision for Credit Losses.
Regional Management Corp. | 2025 Annual Report on Form 10-K | 52 Table of Contents Other Income . Other income increased $2.2 million, or 11.4%, to $21.1 million in 2025, from $18.9 million in 2024, primarily due to an increase in sales of our club membership products of $2.1 million. Provision for Credit Losses.
As of December 31, 2024 and December 31, 2023 we had $132.9 million and $108.1 million, respectively, of immediate availability to draw down cash from our revolving credit facilities. Our unused capacity on our revolving credit facilities (subject to the borrowing base) was $466.2 million and $551.5 million as of December 31, 2024 and December 31, 2023, respectively.
Cash and cash equivalents decreased to $3.8 million as of December 31, 2025, from $4.0 million as of December 31, 2024. We had immediate availability to draw down cash from our revolving credit facilities of $145.3 million and $132.9 million as of December 31, 2025 and the prior year-end, respectively.
The following table sets forth the dividends declared and paid for 2024: Period Declaration Date Record Date Payment Date Dividends Declared Per Common Share 1Q 24 February 7, 2024 February 22, 2024 March 14, 2024 $ 0.30 2Q 24 May 1, 2024 May 22, 2024 June 12, 2024 0.30 3Q 24 July 31, 2024 August 21, 2024 September 12, 2024 0.30 4Q 24 November 6, 2024 November 21, 2024 December 11, 2024 0.30 Total $ 1.20 The Board declared $12.3 million of cash dividends on our common stock during 2024.
The following table sets forth the dividends declared and paid for in the year ended December 31, 2025: Period Declaration Date Record Date Payment Date Dividends Declared Per Common Share Dividends Paid (in thousands) 1Q 25 February 5, 2025 February 20, 2025 March 13, 2025 $ 0.30 $ 3,152 2Q 25 April 30, 2025 May 21, 2025 June 11, 2025 0.30 2,843 3Q 25 July 30, 2025 August 20, 2025 September 10, 2025 0.30 2,773 4Q 25 November 5, 2025 November 25, 2025 December 16, 2025 0.30 2,717 Total $ 1.20 $ 11,485 See Note 20, “Subsequent Events” of the Notes to Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data,” for information regarding our quarterly cash dividend following the end of the year.
Occupancy expenses increased $0.8 million, or 3.2%, to $25.8 million in 2024, from $25.0 million in 2023, primarily due to increased rent expense of $0.9 million. Marketing.
Occupancy expenses increased $2.4 million, or 9.2%, to $28.2 million in 2025, from $25.8 million in 2024, primarily due to expenses associated with opening 17 new branches since the prior year. Marketing.
Net cash provided by financing activities in 2024 was $53.4 million, compared to $26.4 million in 2023, an increase of $27.0 million.
Financing activities consist of borrowings and payments on our outstanding indebtedness. Net cash provided by financing activities in 2025 was $124.5 million, compared to $53.4 million in 2024, a net increase of $71.1 million.
The increase was due to growth in our higher-margin loan portfolio and the growth of receivables in branches opened during 2023 and 2024, partially offset by the transition of small loan customers to large loans. • Retail Loans – Retail loans outstanding decreased $2.7 million, or 71.9%, to $1.1 million at December 31, 2024, from $3.8 million at December 31, 2023.
The decrease was due to the transition of small loan customers to large loans, offset by growth of receivables in branches opened during 2024 and 2025.
As of December 31, 2024, we had five credit facilities outstanding and, from time to time, engage in the private offering and sale of asset-backed notes. We had $132.9 million and $108.1 million of immediate availability to draw down cash from our revolving credit facilities as of December 31, 2024 and December 31, 2023, respectively.
As of December 31, 2025, we had five credit facilities outstanding and, from time to time, we engage in the private offering and sale of asset-backed notes. As part of our overall funding strategy, we have transferred certain finance receivables to affiliated VIEs for asset-backed financing transactions.
The largest component of general and administrative expenses is personnel expense, which decreased $3.1 million, or 2.0%, to $153.8 million in 2024, from $156.9 million in 2023.
The largest component of general and administrative expenses is personnel expense, which increased $5.8 million, or 3.8%, to $159.6 million in 2025, from $153.8 million in 2024. The increase was primarily driven by an increase in labor costs of $7.9 million, including staffing 17 new branches since the prior year, and increased incentive costs of $1.1 million.
Our provision for credit losses decreased $7.8 million, or 3.6%, to $212.2 million in 2024, from $220.0 million in 2023. The decrease was due to a decrease in net credit losses of $11.3 million, partially offset by an incremental increase in the allowance for credit losses of $3.5 million compared to 2023.
Our provision for credit losses increased $33.2 million, or 15.7%, to $245.4 million in 2025, from $212.2 million in 2024. The increase was due to an increase in net credit losses of $23.9 million and the increase in provision expense of $9.3 million compared to 2024. The increase in the provision for credit losses is explained in greater detail below.
The following is a summary of our revolving credit facilities as of December 31, 2024: Dollars in thousands Capacity Debt Balance Effective Interest Rate Facility Cash Reserve Requirement Restricted Cash Collection Maturity Date Senior $ 355,000 $ 219,339 7.7% $ — $ — Sep 2025 RMR IV warehouse $ 125,000 $ 4,792 7.5% $ 61 $ 256 May 2026 RMR V warehouse $ 100,000 $ 52,307 6.9% $ 325 $ 3,882 Nov 2027 RMR VI warehouse (1) $ 75,000 $ 2,443 7.2% $ 32 $ 171 Feb 2026 RMR VII warehouse $ 125,000 $ 37,023 7.0% $ 242 $ 2,746 Oct 2026 (1) See Note 21, “Subsequent Events” of the Notes to Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data,” for information regarding the amendment of this facility following the end of the fiscal year.
The following is a summary of our revolving credit facilities as of December 31, 2025: Dollars in thousands Capacity Debt Balance Effective Interest Rate Restricted Cash Reserves Restricted Cash Collection Maturity Date Senior $ 355,000 $ 188,600 6.6% $ — $ — Aug 2028 RMR IV warehouse $ 125,000 $ 20,596 6.1% $ 259 $ 1,545 May 2027 RMR V warehouse $ 100,000 $ 19,358 6.2% $ 120 $ 1,444 Nov 2027 RMR VI warehouse $ 75,000 $ 21,162 5.9% $ 141 $ 1,698 Feb 2028 RMR VII warehouse $ 125,000 $ 20,470 6.3% $ 121 $ 1,448 Oct 2026 Securitizations.
The decrease in earned premiums was primarily due to our strategic shifts in product and geographic mix which resulted in fewer active policies. The increase in claims, reserves, and certain direct expenses was primarily due to an increase in personal property insurance claims and reserves of $2.6 million related to hurricane activity. Other Income .
The increase in insurance premiums was primarily due to increases in personal property insurance premiums and life insurance premiums. The decrease in claims, reserves, and direct expenses was primarily due to hurricane activity in the prior year, including personal property claims and reserves of $2.6 million during 2024 and a reserve release benefit of $1.0 million during 2025.
We grew the small loan portfolio by $61.2 million, or 12.4%, year-over-year. To balance the risk associated with the growth in our small loan portfolio, we deploy a barbell strategy of also originating higher-credit-quality, auto-secured loans. Our allowance for credit losses was 10.5% of net finance receivables as of December 31, 2024.
On a year-over-year basis, our portfolio of loans with an APR greater than 36% grew by $32.5 million and represented 17.9% of the portfolio, while our auto-secured loan portfolio grew by $87.7 million and represented 13.7% of the portfolio. Our allowance for credit losses was 10.3% of net finance receivables as of December 31, 2025.
As part of our overall funding strategy, we have transferred certain finance receivables to affiliated VIEs for asset-backed financing transactions. Our debt arrangements described below, other than our senior revolving credit facility, are issued by each of our RMR and RMIT SPEs, which are considered VIEs under GAAP.
Our debt arrangements described below, other than our senior revolving credit facility, are issued by each of our RMR and RMIT SPEs, which are considered VIEs under GAAP. These debts are supported by the expected cash Regional Management Corp. | 2025 Annual Report on Form 10-K | 55 Table of Contents flows from the underlying collateralized finance receivables.
Regional Management Corp. | 2024 Annual Report on Form 10-K | 51 Net Finance Receivables by Product Dollars in thousands December 31, 2024 December 31, 2023 YoY $ Inc (Dec) YoY % Inc (Dec) Large loans $ 1,336,780 $ 1,274,137 $ 62,643 4.9 % Small loans 554,686 493,473 61,213 12.4 % Retail loans 1,069 3,800 (2,731 ) (71.9 )% Total $ 1,892,535 $ 1,771,410 $ 121,125 6.8 % Number of branches at period end 344 346 (2 ) (0.6 )% Net finance receivables per branch $ 5,502 $ 5,120 $ 382 7.5 % Comparison of the Year Ended December 31, 2024, Versus the Year Ended December 31, 2023 Net Income.
Dollars in thousands December 31, 2025 December 31, 2024 YoY $ Inc (Dec) YoY % Inc (Dec) Large loans $ 1,593,171 $ 1,336,780 $ 256,391 19.2 % Small loans 547,028 555,755 (8,727 ) (1.6 )% Total $ 2,140,199 $ 1,892,535 $ 247,664 13.1 % Number of branches 353 344 9 2.6 % Net finance receivables per branch $ 6,063 $ 5,502 $ 561 10.2 % Comparison of the Year Ended December 31, 2025, Versus the Year Ended December 31, 2024 Net Income.
Our net credit loss ratio was 11.2% in 2024, compared to 12.4% in 2023. The 2023 loan sale resulted in a decrease of 70 basis points to Regional Management Corp. | 2024 Annual Report on Form 10-K | 53 our 2024 net credit loss ratio.
Our net credit loss rate was 11.4% in 2025, compared to 11.2% in 2024. Our net credit loss rate during 2024 was inclusive of an estimated 70 basis point benefit related to the fourth quarter 2023 loan sale. Delinquency Performance.
The 2022 and 2023 loan sales resulted in a net increase of 10 basis points to our 2023 net credit loss ratio. Delinquency Performance. Our delinquency rate increased to 7.7% as of December 31, 2024, from 6.9% as of December 31, 2023.
Our delinquency rate improved to 7.5% as of December 31, 2025, from 7.7% as of December 31, 2024, reflecting the overall improved credit quality and performance of our portfolio.
The decrease in the provision for credit losses is explained in greater detail below. Allowance for Credit Losses. We evaluate delinquency and losses in each of our loan products in establishing the allowance for credit losses. Our increase in the allowance for credit losses was $12.1 million, an increase of $3.5 million from $8.6 million in 2023.
Allowance for Credit Losses. We evaluate delinquency and losses in each of our loan products in establishing the allowance for credit losses. During 2025 and 2024, the allowance for credit losses included builds of $21.4 million and $12.1 million, respectively. The higher build in 2025 was primarily driven by growth in net finance receivables during the year.
Other expenses increased $3.6 million, or 8.0%, to $49.1 million in 2024, from $45.4 million in 2023, primarily due to an increase in collections expense of $1.1 million and increased investment in digital and technological capabilities of $1.0 million. The prior-year period included insurance settlement proceeds of $1.0 million, which reduced other expenses.
Other expenses increased $2.1 million, or 4.3%, to $51.2 million in 2025, from $49.1 million in 2024. Other expenses increased $1.4 million due to investment in digital and technological capabilities, including our new front-end branch origination platform.
The following table represents the principal balance of loans originated and refinanced: Loans Originated for the Year Ended Dollars in thousands December 31, 2024 December 31, 2023 YoY $ Inc (Dec) YoY % Inc (Dec) Large loans $ 973,048 $ 928,499 $ 44,549 4.8 % Small loans 681,463 606,412 75,051 12.4 % Retail loans — 146 (146 ) (100.0 )% Total $ 1,654,511 $ 1,535,057 $ 119,454 7.8 % Regional Management Corp. | 2024 Annual Report on Form 10-K | 52 The following table summarizes the components of the increase in interest and fee income: Components of Increase in Interest and Fee Income Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Increase (Decrease) Dollars in thousands Volume Rate Volume & Rate Net Large loans $ 9,424 $ 4,262 $ 124 $ 13,810 Small loans 16,202 9,065 892 26,159 Retail loans (746 ) (80 ) 53 (773 ) Product mix (2,754 ) 3,086 (332 ) — Total $ 22,126 $ 16,333 $ 737 $ 39,196 Insurance Income, Net .
The following table represents the principal balance of loans originated and refinanced for the periods indicated: Year Ended December 31, Dollars in thousands 2025 2024 YoY $ Inc (Dec) YoY % Inc (Dec) Large loans $ 1,305,531 $ 973,048 $ 332,483 34.2 % Small loans 656,499 681,463 (24,964 ) (3.7 )% Total $ 1,962,030 $ 1,654,511 $ 307,519 18.6 % The following table summarizes the components of the increase in interest and fee income when comparing the years ended December 31, 2025 and 2024: Increase (Decrease) Dollars in thousands Volume Rate Volume & Rate Net Large loans $ 40,538 $ 4,189 $ 503 $ 45,230 Small loans 11,838 (6,604 ) (409 ) 4,825 Product mix 2,349 (1,817 ) (532 ) — Total $ 54,725 $ (4,232 ) $ (438 ) $ 50,055 Insurance Income, Net .

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

3 edited+0 added−0 removed3 unchanged
Biggest changeAs of December 31, 2024, the balances and key terms of the credit facilities were as follows: Revolving Credit Facility Debt Balance (in thousands) Interest Payment Frequency Floor Margin Rate Type Effective Interest Rate Senior $ 219,339 Monthly 0.5 % 3.0 % 1-month SOFR 7.7 % RMR IV warehouse 4,792 Monthly — 2.8 % 1-month SOFR 7.5 % RMR V warehouse 52,307 Monthly — 2.1 % Conduit 6.9 % RMR VI warehouse 2,443 Monthly — 2.5 % 1-month SOFR 7.2 % RMR VII warehouse 37,023 Monthly — 2.4 % 1-month SOFR 7.0 % Total $ 315,904 Based on the underlying rates and the outstanding balances as of December 31, 2024, an increase of 100 basis points in the rates of our revolving credit facilities would result in approximately $3.2 million of increased interest expense on an annual basis, in the aggregate, under these borrowings.
Biggest changeAs of December 31, 2025, the balances and key terms of the credit facilities’ interest rate risk were as follows: Revolving Credit Facility Debt Balance (in thousands) Interest Payment Frequency Floor Margin Rate Type Effective Interest Rate Senior $ 188,600 Monthly 0.5 % 2.8 % 1-month SOFR 6.6 % RMR IV warehouse 20,596 Monthly — 2.3 % 1-month SOFR 6.1 % RMR V warehouse 19,358 Monthly — 2.1 % Conduit 6.2 % RMR VI warehouse 21,162 Monthly — 2.1 % 1-month SOFR 5.9 % RMR VII warehouse 20,470 Monthly — 2.4 % 1-month SOFR 6.3 % Total $ 270,186 Based on the underlying rates and the outstanding balances as of December 31, 2025, an increase of 100 basis points in the rates of our revolving credit facilities would result in approximately $2.7 million of increased interest expense on an annual basis, in the aggregate, under these borrowings.
The nature and amount of our debt may vary as a result of future business requirements, market conditions, and other factors. Regional Management Corp. | 2024 Annual Report on Form 10-K | 59
The nature and amount of our debt may vary as a result of future business requirements, market conditions, and other factors. Regional Management Corp. | 2025 Annual Report on Form 10-K | 58 Table of Contents
As of December 31, 2024, the interest rates on the securitizations, which account for 79% of our debt, were fixed. We maintain liquidity and fund our business operations in part through variable-rate borrowings under a senior revolving credit facility and multiple revolving warehouse credit facilities.
As of December 31, 2025, 84% of our total debt balance consisted of fixed-rate borrowings from securitizations. We maintain liquidity and fund our business operations in part through variable-rate borrowings under a senior revolving credit facility and multiple revolving warehouse credit facilities.

Other RM 10-K year-over-year comparisons