- Net income of $12.0 million and diluted earnings per share of $1.24 -

- 28.9% year-over-year net finance receivables growth and 23.3% year-over-year revenue growth -

- 30+ day contractual delinquencies of 6.2% as of June 30, 2022, or 10 basis points better than June 30, 2019 pre-pandemic levels -

- Multi-year low operating expense ratio of 14.7% -

Regional Management Corp. (NYSE:RM), a diversified consumer finance company, today announced results for the second quarter ended June 30, 2022.

"We continued to execute well on our strategic plans and delivered strong results in the second quarter, including disciplined, controlled growth of our portfolio," said Robert W. Beck, President and Chief Executive Officer of Regional Management Corp. "We expanded operations to the state of Indiana in June, and just last week, we opened our first branch in California. We grew our loan portfolio to an all-time high of $1.53 billion, increased our active accounts by 19% over the prior year, produced record quarterly revenue of $123 million, tightly managed our expenses to a multi-year low 14.7% operating expense ratio, and finished the quarter with $12 million of net income and $1.24 of diluted EPS. We have consistently demonstrated our ability to grow our account base and portfolio in a controlled and profitable manner."

"Looking ahead, we are keenly focused on preserving the credit quality of our loan portfolio while controlling our expenses," added Mr. Beck. "Despite the strong labor market, inflation began to impact our customers more significantly in the second quarter, particularly those customers in higher-rate, higher-risk segments. By quarter-end, delinquency and net credit loss rates had nearly normalized to 2019 pre-pandemic levels. In recognition of a more uncertain economic environment ahead, we have been proactively tightening our credit models since the fourth quarter, and we have taken a prudent approach of maintaining our allowance for credit losses at 11% of net finance receivables, including $15 million of macro-related reserves."

"While the economic environment is difficult, our investments in improved credit models, years-long shift to large and sub-36% loans, and recent credit tightening actions have contributed to an overall higher-quality portfolio compared to pre-pandemic periods," continued Mr. Beck. "The labor market remains strong, our customers are resilient, and our dynamic and adaptable underwriting capabilities enable us to respond quickly to market conditions. As we have done in the past, we will manage our expenses tightly while continuing to invest in the things that will generate the greatest returns in the form of controlled, disciplined portfolio growth, improved credit performance, and greater operating leverage. Ultimately, these efforts will position us to sustainably grow our business, expand our market share, and create additional value for our shareholders."

Second Quarter 2022 Highlights

Net income for the second quarter of 2022 was $12.0 million and diluted earnings per share was $1.24, decreases of 40.6% and 33.7%, respectively, compared to the prior-year period.

Net finance receivables as of June 30, 2022 hit an all-time high of $1.53 billion, a record increase of $342.3 million, or 28.9%, from the prior-year period.
- Large loan net finance receivables of $1.1 billion increased $267.5 million, or 33.8%, from the prior-year period and represented 69.4% of the total loan portfolio. Small loan net finance receivables were $455.3 million, an increase of 19.6% from the prior-year period.
- Branch, digitally sourced, direct mail, and total loan originations were all at record levels for a second quarter.
- Total loan originations of $426.3 million in the second quarter of 2022, an increase of $48.6 million, or 12.9%, from the prior-year period.
- Digitally sourced loan originations of $53.5 million in the second quarter of 2022, an increase of $17.5 million, or 48.6%, from the prior-year period.

Total revenue for the second quarter of 2022 was a record $122.9 million, an increase of $23.2 million, or 23.3%, from the prior-year period.
- Interest and fee income increased $21.0 million, or 23.6%, primarily due to higher average net finance receivables, partially offset by ongoing credit normalization and the continued mix shift towards large loans.
- Insurance income, net increased $1.6 million, or 18.1%, driven by an increase in premium revenue associated with portfolio growth.

Provision for credit losses for the second quarter of 2022 was $45.4 million, an increase of $24.9 million, or 120.9%, from the prior-year period. The provision for credit losses for the second quarter of 2022 included an incremental reserve of $8.7 million primarily for the $79.6 million in sequential portfolio growth.
- Allowance for credit losses was $167.5 million as of June 30, 2022, including a $14.9 million allowance for credit losses reserve associated with estimated future macroeconomic impacts on credit losses.

Annualized net credit losses as a percentage of average net finance receivables for the second quarter of 2022 were 10.0%, a 260 basis point increase compared to 7.4% in the prior-year period but a 40 basis point improvement compared to pre-pandemic levels of 10.4% in the second quarter of 2019.

As of June 30, 2022, 30+ day contractual delinquencies totaled $94.7 million, or 6.2% of net finance receivables, an increase of 50 basis points compared to March 31, 2022, but a 10 basis point improvement from pre-pandemic levels as of June 30, 2019. The 30+ day contractual delinquency remains well below the company's $167.5 million allowance for credit losses as of June 30, 2022.

The company expanded its operations to the state of Indiana in the second quarter and to the state of California in July. The company closed 21 branches in the second quarter where clear opportunities existed to consolidate operations into a larger branch in close proximity. This branch optimization is consistent with the company's omni-channel strategy and builds upon the company's recent successes in entering new states with a lighter branch footprint, while still providing customers with best-in-class service. The company incurred $0.6 million of branch optimization expenses in the second quarter. The branch optimization will generate approximately $1.8 million in general and administrative expense annual savings, which the company will reinvest in its expansion into new states.

General and administrative expenses for the second quarter of 2022 were $54.1 million, an increase of $7.7 million, or 16.7%, from the prior-year period due to ongoing investment in personnel, marketing, and digital capabilities to support the company's growth strategies. General and administrative expenses have declined sequentially for two consecutive quarters. For the second quarter of 2022, general and administrative expenses included $0.6 million of expenses related to branch optimization.

The operating expense ratio (annualized general and administrative expenses as a percentage of average net finance receivables) for the second quarter of 2022 was a multi-year low of 14.7%, a 180 basis point improvement compared to the prior-year period. The operating expense ratio was inclusive of a 10 basis point impact related to branch optimization.

In the second quarter of 2022, the company completed its $20 million stock repurchase program, repurchasing 253,148 shares of its common stock during the quarter at a weighted-average price of $45.72 per share. The company repurchased 425,924 shares in total under the program at a weighted-average price of $46.96 per share.

Third Quarter 2022 Dividend

The company's Board of Directors has declared a dividend of $0.30 per common share for the third quarter of 2022. The dividend will be paid on September 15, 2022 to shareholders of record as of the close of business on August 24, 2022. The declaration and payment of any future dividend is subject to the discretion of the Board of Directors and will depend on a variety of factors, including the company's financial condition and results of operations.

Liquidity and Capital Resources

As of June 30, 2022, the company had net finance receivables of $1.5 billion and debt of $1.2 billion. The debt consisted of:

$78.3 million on the company's $500 million senior revolving credit facility,
$111.4 million on the company's aggregate $300 million revolving warehouse credit facilities, and
$1.0 billion through the company's asset-backed securitizations.

As of June 30, 2022, the company's unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was $611 million, or 76.4%, and the company had available liquidity of $195.0 million, including unrestricted cash on hand and immediate availability to draw down cash from its senior revolving credit facility. As of June 30, 2022, the company's fixed-rate debt as a percentage of total debt was 84%, with a weighted-average coupon of 2.9% and an average revolving duration of 2.6 years.

During the second quarter, the company held interest rate caps to manage the risk associated with variable rate debt. The interest rate caps are based on one-month LIBOR and reimburse the company for the difference when one-month LIBOR exceeds the strike rate. The company sold $450 million of interest rate caps in the second quarter, realizing $12.8 million in lifetime market value gains on the rate caps. During the second quarter, increases in the market value of the rate caps benefited interest expense by $3.0 million. As of June 30, 2022, the company maintained $100 million in interest rate cap protection, with one-month LIBOR strike rates of 50 basis points and maturity dates in February 2026. These rate caps provide longer duration protection against the potential for continued increases in interest rates.

The company had a funded debt-to-equity ratio of 4.0 to 1.0 and a stockholders' equity ratio of 19.3%, each as of June 30, 2022. On a non-GAAP basis, the company had a funded debt-to-tangible equity ratio of 4.1 to 1.0, as of June 30, 2022. Please refer to the reconciliations of non-GAAP measures to comparable GAAP measures included at the end of this press release.

Conference Call Information

Regional Management Corp. will host a conference call and webcast today at 5:00 PM ET to discuss these results.

The dial-in number for the conference call is (855) 327-6837 (toll-free) or (631) 891-4304 (direct). Please dial the number 10 minutes prior to the scheduled start time.

*** A supplemental slide presentation will be made available on Regional's website prior to the earnings call at www.RegionalManagement.com. ***

In addition, a live webcast of the conference call will be available on Regional's website at www.RegionalManagement.com.

A webcast replay of the call will be available at www.RegionalManagement.com for one year following the call.

About Regional Management Corp.

Regional Management Corp. (NYSE:RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name "Regional Finance" online and in branch locations in 16 states across the United States. Most of its 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. Regional Management sources loans through its multiple channel platform, which includes branches, centrally managed direct mail campaigns, digital partners, retailers, and its consumer website. For more information, please visit www.RegionalManagement.com.

Forward-Looking Statements

This press release may contain various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead represent Regional Management Corp.'s expectations or beliefs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlooks or future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. Words such as "may," "will," "should," "likely," "anticipates," "expects," "intends," "plans," "projects," "believes," "estimates," "outlook," and similar expressions may be used to identify these forward-looking statements. Such forward-looking statements speak only as of the date on which they were made and are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. As a result, actual performance and results may differ materially from those contemplated by these forward-looking statements. Therefore, investors should not place undue reliance on forward-looking statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in forward-looking statements include, but are not limited to, the following: managing growth effectively, implementing Regional Management's growth strategy, and opening new branches as planned; Regional Management's convenience check strategy; Regional Management's policies and procedures for underwriting, processing, and servicing loans; Regional Management's ability to collect on its loan portfolio; Regional Management's insurance operations; exposure to credit risk and repayment risk, which risks may increase in light of adverse or recessionary economic conditions; the implementation of new underwriting models and processes, including as to the effectiveness of new custom scorecards; changes in the competitive environment in which Regional Management operates or a decrease in the demand for its products; the geographic concentration of Regional Management's loan portfolio; the failure of third-party service providers, including those providing information technology products; changes in economic conditions in the markets Regional Management serves, including levels of unemployment and bankruptcies; the ability to achieve successful acquisitions and strategic alliances; the ability to make technological improvements as quickly as competitors; security breaches, cyber-attacks, failures in information systems, or fraudulent activity; the ability to originate loans; reliance on information technology resources and providers, including the risk of prolonged system outages; changes in current revenue and expense trends, including trends affecting delinquencies and credit losses; changes in operating and administrative expenses; the departure, transition, or replacement of key personnel; the ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support Regional Management's operations and initiatives; changes in interest rates; existing sources of liquidity may become insufficient or access to these sources may become unexpectedly restricted; exposure to financial risk due to asset-backed securitization transactions; risks related to regulation and legal proceedings, including changes in laws or regulations or in the interpretation or enforcement of laws or regulations; changes in accounting standards, rules, and interpretations and the failure of related assumptions and estimates, including those associated with CECL accounting; the impact of changes in tax laws, guidance, and interpretations, including the timing and amount of revenues that may be recognized; risks related to the ownership of Regional Management's common stock, including volatility in the market price of shares of Regional Management's common stock; the timing and amount of future cash dividend payments; and anti-takeover provisions in Regional Management's charter documents and applicable state law. The COVID-19 pandemic may impact Regional Management's operations and financial condition and may also magnify many of the existing risks and uncertainties.

The foregoing factors and others are discussed in greater detail in Regional Management's filings with the Securities and Exchange Commission. Regional Management will not update or revise forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments, or otherwise, except as required by law. Regional Management is not responsible for changes made to this document by wire services or Internet services.


Regional Management Corp. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
(dollars in thousands, except per share amounts)

							Better (Worse)												Better (Worse)
	2Q 22			2Q 21			$			%			YTD 22			YTD 21			$			%
Revenue
Interest and fee income	$	109,771		$	88,793		$	20,978			23.6	%	$	217,402		$	176,072		$	41,330			23.5	%
Insurance income, net		10,220			8,656			1,564			18.1	%		20,764			16,641			4,123			24.8	%
Other income		2,880			2,227			653			29.3	%		5,553			4,694			859			18.3	%
Total revenue		122,871			99,676			23,195			23.3	%		243,719			197,407			46,312			23.5	%

Expenses
Provision for credit losses		45,400			20,549			(24,851	)		(120.9	)%		76,258			31,911			(44,347	)		(139.0	)%

Personnel		33,941			28,370			(5,571	)		(19.6	)%		69,595			57,221			(12,374	)		(21.6	)%
Occupancy		6,156			5,568			(588	)		(10.6	)%		11,964			11,588			(376	)		(3.2	)%
Marketing		4,108			4,776			668			14.0	%		7,199			7,486			287			3.8	%
Other		9,916			7,675			(2,241	)		(29.2	)%		20,463			15,937			(4,526	)		(28.4	)%
Total general and administrative		54,121			46,389			(7,732	)		(16.7	)%		109,221			92,232			(16,989	)		(18.4	)%

Interest expense		7,564			7,801			237			3.0	%		7,505			14,936			7,431			49.8	%
Income before income taxes		15,786			24,937			(9,151	)		(36.7	)%		50,735			58,328			(7,593	)		(13.0	)%
Income taxes		3,804			4,771			967			20.3	%		11,970			12,640			670			5.3	%
Net income	$	11,982		$	20,166		$	(8,184	)		(40.6	)%	$	38,765		$	45,688		$	(6,923	)		(15.2	)%
Net income per common share:
Basic	$	1.29		$	1.98		$	(0.69	)		(34.8	)%	$	4.13		$	4.41		$	(0.28	)		(6.3	)%
Diluted	$	1.24		$	1.87		$	(0.63	)		(33.7	)%	$	3.94		$	4.18		$	(0.24	)		(5.7	)%
Weighted-average common shares outstanding:
Basic		9,261			10,200			939			9.2	%		9,396			10,371			975			9.4	%
Diluted		9,669			10,797			1,128			10.4	%		9,845			10,931			1,086			9.9	%
Return on average assets (annualized)		3.2	%		7.1	%								5.2	%		8.2	%
Return on average equity (annualized)		16.0	%		28.7	%								26.3	%		32.7	%


Regional Management Corp. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands, except par value amounts)

							Increase (Decrease)
	2Q 22			2Q 21			$			%
Assets
Cash	$	7,928		$	6,086		$	1,842			30.3	%
Net finance receivables		1,525,659			1,183,387			342,272			28.9	%
Unearned insurance premiums		(48,986	)		(39,469	)		(9,517	)		(24.1	)%
Allowance for credit losses		(167,500	)		(139,400	)		(28,100	)		(20.2	)%
Net finance receivables, less unearned insurance premiums and allowance for credit losses		1,309,173			1,004,518			304,655			30.3	%
Restricted cash		144,802			99,920			44,882			44.9	%
Lease assets		28,555			28,223			332			1.2	%
Deferred tax assets, net		19,798			14,109			5,689			40.3	%
Property and equipment		12,808			12,658			150			1.2	%
Intangible assets		10,312			9,081			1,231			13.6	%
Other assets		14,568			16,710			(2,142	)		(12.8	)%
Total assets	$	1,547,944		$	1,191,305		$	356,639			29.9	%
Liabilities and Stockholders' Equity
Liabilities:
Debt	$	1,194,570		$	853,067		$	341,503			40.0	%
Unamortized debt issuance costs		(10,819	)		(9,356	)		(1,463	)		(15.6	)%
Net debt		1,183,751			843,711			340,040			40.3	%
Accounts payable and accrued expenses		34,492			38,316			(3,824	)		(10.0	)%
Lease liabilities		31,117			30,295			822			2.7	%
Total liabilities		1,249,360			912,322			337,038			36.9	%
Stockholders' equity:
Preferred stock ($0.10 par value, 100,000 shares authorized, none issued or outstanding)		—			—			—			—
Common stock ($0.10 par value, 1,000,000 shares authorized, 14,390 shares issued and 9,584 shares outstanding at June 30, 2022 and 14,141 shares issued and 10,360 shares outstanding at June 30, 2021)		1,439			1,414			25			1.8	%
Additional paid-in capital		108,345			105,509			2,836			2.7	%
Retained earnings		338,943			268,172			70,771			26.4	%
Treasury stock (4,807 shares at June 30, 2022 and 3,780 shares at June 30, 2021)		(150,143	)		(96,112	)		(54,031	)		(56.2	)%
Total stockholders' equity		298,584			278,983			19,601			7.0	%
Total liabilities and stockholders' equity	$	1,547,944		$	1,191,305		$	356,639			29.9	%


Regional Management Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
(dollars in thousands, except per share amounts)

	Net Finance Receivables by Product
	2Q 22		1Q 22		QoQ $ Inc (Dec)			QoQ % Inc (Dec)			2Q 21		YoY $ Inc (Dec)			YoY % Inc (Dec)
Small loans	$	455,253	$	438,153	$	17,100			3.9	%	$	380,780	$	74,473			19.6	%
Large loans		1,059,523		997,226		62,297			6.2	%		792,046		267,477			33.8	%
Retail loans		10,883		10,692		191			1.8	%		10,561		322			3.0	%
Total net finance receivables	$	1,525,659	$	1,446,071	$	79,588			5.5	%	$	1,183,387	$	342,272			28.9	%
Number of branches at period end		334		354		(20	)		(5.6	)%		368		(34	)		(9.2	)%
Net finance receivables per branch	$	4,568	$	4,085	$	483			11.8	%	$	3,216	$	1,352			42.0	%


	Averages and Yields
	2Q 22					1Q 22					2Q 21
	Average Net Finance Receivables		Average Yield (1)			Average Net Finance Receivables		Average Yield (1)			Average Net Finance Receivables		Average Yield (1)
Small loans	$	437,226		35.8	%	$	440,936		36.0	%	$	365,535		38.3	%
Large loans		1,023,546		27.4	%		982,881		27.5	%		747,582		28.5	%
Retail loans		10,828		18.3	%		10,620		18.4	%		11,181		18.2	%
Total interest and fee yield	$	1,471,600		29.8	%	$	1,434,437		30.0	%	$	1,124,298		31.6	%
Total revenue yield	$	1,471,600		33.4	%	$	1,434,437		33.7	%	$	1,124,298		35.5	%

(1) Annualized interest and fee income as a percentage of average net finance receivables.


	Components of Increase in Interest and Fee Income
	2Q 22 Compared to 2Q 21
	Increase (Decrease)
	Volume			Rate			Volume & Rate			Total
Small loans	$	6,868		$	(2,300	)	$	(451	)	$	4,117
Large loans		19,662			(2,035	)		(751	)		16,876
Retail loans		(16	)		1			-			(15	)
Product mix		915			(594	)		(321	)		—
Total increase in interest and fee income	$	27,429		$	(4,928	)	$	(1,523	)	$	20,978


	Loans Originated (1)
	2Q 22		1Q 22		QoQ $ Inc (Dec)			QoQ % Inc (Dec)			2Q 21		YoY $ Inc (Dec)		YoY % Inc (Dec)
Small loans	$	171,244	$	137,131	$	34,113			24.9	%	$	151,584	$	19,660		13.0	%
Large loans		252,572		186,279		66,293			35.6	%		224,484		28,088		12.5	%
Retail loans		2,471		2,590		(119	)		(4.6	)%		1,659		812		48.9	%
Total loans originated	$	426,287	$	326,000	$	100,287			30.8	%	$	377,727	$	48,560		12.9	%

(1) Represents the principal balance of loan originations and refinancings.


	Other Key Metrics
	2Q 22			1Q 22			2Q 21
Net credit losses	$	36,700		$	31,358		$	20,749
Percentage of average net finance receivables (annualized)		10.0	%		8.7	%		7.4	%
Provision for credit losses	$	45,400		$	30,858		$	20,549
Percentage of average net finance receivables (annualized)		12.3	%		8.6	%		7.3	%
Percentage of total revenue		36.9	%		25.5	%		20.6	%
General and administrative expenses	$	54,121		$	55,100		$	46,389
Percentage of average net finance receivables (annualized)		14.7	%		15.4	%		16.5	%
Percentage of total revenue		44.0	%		45.6	%		46.5	%
Same store results (1):
Net finance receivables at period-end	$	1,466,300		$	1,406,904		$	1,175,516
Net finance receivable growth rate		24.7	%		27.3	%		15.4	%
Number of branches in calculation		310			331			356

(1) Same store sales reflect the change in year-over-year sales for the comparable branch base. The comparable branch base includes those branches open for at least one year.


	Contractual Delinquency by Aging
	2Q 22				1Q 22				2Q 21
Allowance for credit losses (1)	$	167,500	11.0	%	$	158,800	11.0	%	$	139,400	11.8	%
Current		1,306,183	85.6	%		1,268,367	87.7	%		1,066,124	90.1	%
1 to 29 days past due		124,810	8.2	%		95,689	6.6	%		74,470	6.3	%
Delinquent accounts:
30 to 59 days		26,785	1.8	%		19,818	1.4	%		14,488	1.2	%
60 to 89 days		24,420	1.6	%		16,390	1.1	%		9,614	0.8	%
90 to 119 days		18,557	1.2	%		15,636	1.1	%		6,116	0.5	%
120 to 149 days		12,528	0.8	%		15,322	1.1	%		5,961	0.5	%
150 to 179 days		12,376	0.8	%		14,849	1.0	%		6,614	0.6	%
Total contractual delinquency	$	94,666	6.2	%	$	82,015	5.7	%	$	42,793	3.6	%
Total net finance receivables	$	1,525,659	100.0	%	$	1,446,071	100.0	%	$	1,183,387	100.0	%
1 day and over past due	$	219,476	14.4	%	$	177,704	12.3	%	$	117,263	9.9	%


	Contractual Delinquency by Product
	2Q 22				1Q 22				2Q 21
Small loans	$	41,984	9.2	%	$	34,861	8.0	%	$	18,876	5.0	%
Large loans		51,763	4.9	%		46,375	4.7	%		23,251	2.9	%
Retail loans		919	8.4	%		779	7.3	%		666	6.3	%
Total contractual delinquency	$	94,666	6.2	%	$	82,015	5.7	%	$	42,793	3.6	%

(1) Includes estimated macroeconomic allowance for credit losses of $14,900, $15,900, and $20,100 in 2Q 22, 1Q 22, and 2Q 21, respectively.


	Income Statement Quarterly Trend
	2Q 21		3Q 21		4Q 21		1Q 22			2Q 22		QoQ $ B(W)			YoY $ B(W)
Revenue
Interest and fee income	$	88,793	$	99,355	$	107,117	$	107,631		$	109,771	$	2,140		$	20,978
Insurance income, net		8,656		9,418		9,423		10,544			10,220		(324	)		1,564
Other income		2,227		2,687		2,944		2,673			2,880		207			653
Total revenue		99,676		111,460		119,484		120,848			122,871		2,023			23,195
Expenses
Provision for credit losses		20,549		26,096		31,008		30,858			45,400		(14,542	)		(24,851	)
Personnel		28,370		29,299		33,313		35,654			33,941		1,713			(5,571	)
Occupancy		5,568		6,027		6,511		5,808			6,156		(348	)		(588	)
Marketing		4,776		2,488		4,431		3,091			4,108		(1,017	)		668
Other		7,675		9,936		11,277		10,547			9,916		631			(2,241	)
Total general and administrative		46,389		47,750		55,532		55,100			54,121		979			(7,732	)
Interest expense		7,801		8,816		7,597		(59	)		7,564		(7,623	)		237
Income before income taxes		24,937		28,798		25,347		34,949			15,786		(19,163	)		(9,151	)
Income taxes		4,771		6,577		4,569		8,166			3,804		4,362			967
Net income	$	20,166	$	22,221	$	20,778	$	26,783		$	11,982	$	(14,801	)	$	(8,184	)
Net income per common share:
Basic	$	1.98	$	2.25	$	2.18	$	2.81		$	1.29	$	(1.52	)	$	(0.69	)
Diluted	$	1.87	$	2.11	$	2.04	$	2.67		$	1.24	$	(1.43	)	$	(0.63	)
Weighted-average shares outstanding:
Basic		10,200		9,861		9,545		9,533			9,261		272			939
Diluted		10,797		10,544		10,177		10,022			9,669		353			1,128


	Balance Sheet Quarterly Trend
	2Q 21		3Q 21		4Q 21		1Q 22		2Q 22		QoQ $ Inc (Dec)		YoY $ Inc (Dec)
Total assets	$	1,191,305	$	1,313,558	$	1,459,662	$	1,497,671	$	1,547,944	$	50,273	$	356,639
Net finance receivables	$	1,183,387	$	1,314,233	$	1,426,257	$	1,446,071	$	1,525,659	$	79,588	$	342,272
Allowance for credit losses	$	139,400	$	150,100	$	159,300	$	158,800	$	167,500	$	8,700	$	28,100
Debt	$	853,067	$	978,803	$	1,107,953	$	1,134,377	$	1,194,570	$	60,193	$	341,503


	Other Key Metrics Quarterly Trend
	2Q 21			3Q 21			4Q 21			1Q 22			2Q 22			QoQ Inc (Dec)			YoY Inc (Dec)
Interest and fee yield (annualized)		31.6	%		32.0	%		31.4	%		30.0	%		29.8	%		(0.2	)%		(1.8	)%
Efficiency ratio (1)		46.5	%		42.8	%		46.5	%		45.6	%		44.0	%		(1.6	)%		(2.5	)%
Operating expense ratio (2)		16.5	%		15.4	%		16.3	%		15.4	%		14.7	%		(0.7	)%		(1.8	)%
30+ contractual delinquency		3.6	%		4.7	%		6.0	%		5.7	%		6.2	%		0.5	%		2.6	%
Net credit loss ratio (3)		7.4	%		5.0	%		6.4	%		8.7	%		10.0	%		1.3	%		2.6	%
Book value per share	$	26.93		$	27.73		$	28.89		$	30.47		$	31.15		$	0.68		$	4.22

(1) General and administrative expenses as a percentage of total revenue.

(2) Annualized general and administrative expenses as a percentage of average net finance receivables.

(3) Annualized net credit losses as a percentage of average net finance receivables.


	Averages and Yields
	YTD 22					YTD 21
	Average Net Finance Receivables		Average Yield (Annualized)			Average Net Finance Receivables		Average Yield (Annualized)
Small loans	$	439,070		35.9	%	$	377,272		37.9	%
Large loans		1,003,326		27.4	%		734,390		28.2	%
Retail loans		10,725		18.3	%		12,170		18.0	%
Total interest and fee yield	$	1,453,121		29.9	%	$	1,123,832		31.3	%
Total revenue yield	$	1,453,121		33.5	%	$	1,123,832		35.1	%


	Components of Increase in Interest and Fee Income
	YTD 22 Compared to YTD 21
	Increase (Decrease)
	Volume			Rate			Volume & Rate			Total
Small loans	$	11,706		$	(3,762	)	$	(616	)	$	7,328
Large loans		37,907			(2,775	)		(1,017	)		34,115
Retail loans		(130	)		19			(2	)		(113	)
Product mix		2,107			(1,417	)		(690	)		—
Total increase in interest and fee income	$	51,590		$	(7,935	)	$	(2,325	)	$	41,330


	Loans Originated (1)
	YTD 22		YTD 21		YTD $ Inc (Dec)		YTD % Inc (Dec)
Small loans	$	308,375	$	253,325	$	55,050		21.7	%
Large loans		438,851		355,809		83,042		23.3	%
Retail loans		5,061		3,439		1,622		47.2	%
Total loans originated	$	752,287	$	612,573	$	139,714		22.8	%

(1) Represents the principal balance of loan originations and refinancings.

	Other Key Metrics
	YTD 22			YTD 21
Net credit losses	$	68,058		$	42,511
Percentage of average net finance receivables (annualized)		9.4	%		7.6	%
Provision for credit losses	$	76,258		$	31,911
Percentage of average net finance receivables (annualized)		10.5	%		5.7	%
Percentage of total revenue		31.3	%		16.2	%
General and administrative expenses	$	109,221		$	92,232
Percentage of average net finance receivables (annualized)		15.0	%		16.4	%
Percentage of total revenue		44.8	%		46.7	%

Non-GAAP Financial Measures

In addition to financial measures presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures. The company's management utilizes non-GAAP measures as additional metrics to aid in, and enhance, its understanding of the company's financial results. Tangible equity and the funded debt-to-tangible equity ratio are non-GAAP measures that adjust GAAP measures to exclude intangible assets. Management uses these equity measures to evaluate and manage the company's capital and leverage position. The company also believes that these equity measures are commonly used in the financial services industry and provide useful information to users of the company's financial statements in the evaluation of its capital and leverage position.

This non-GAAP financial information should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. In addition, the company's non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies. The following tables provide a reconciliation of GAAP measures to non-GAAP measures.


	2Q 22
Debt	$	1,194,570
Total stockholders' equity		298,584
Less: Intangible assets		10,312
Tangible equity (non-GAAP)	$	288,272
Funded debt-to-equity ratio		4.0	x
Funded debt-to-tangible equity ratio (non-GAAP)		4.1	x

View source version on businesswire.com: https://www.businesswire.com/news/home/20220803005853/en/

Regional Management Corp. Announces Second Quarter 2022 Results