RM · Regional Management Corp.

Regional Management Corp. delivered robust Q1 2026 results with net income of $11.4 million, up 62.7% year-over-year, and diluted EPS of $1.18, surging 68.6% YoY. Record total revenue of $167.3 million rose 9.4% due to 11.3% portfolio growth to $2.1 billion in net finance receivables, driven by $388 million in originations, strong large loan demand including auto-secured products up 37.7% to $301.3 million (14.3% of portfolio), and 10 new branches contributing 7.6% of growth. CEO Lakhbir S. Lamba highlighted disciplined execution, stable credit, and operating model scalability, with progress on auto-secured expansion, new markets, and Column bank partnership for enhanced growth and returns. Credit metrics showed net credit loss rate at 12.5% (up 10 bps YoY due to higher liquidation), 30+ day delinquencies at 7.2% (up 10 bps YoY), and allowance for credit losses at 10.4% of receivables after a $1.4 million sequential reserve decrease. Operating efficiency hit an all-time best with 12.2% expense ratio, down 180 bps YoY despite growth investments. The company repurchased 207,975 shares at $36.06 average. Balance sheet remains solid with $516 million unused capacity, $135.6 million liquidity, 84% fixed-rate debt at 4.7% WAC, and funded debt-to-equity of 4.3x. Board declared $0.30/share Q2 dividend. Guidance targets 20-25% net income growth and 10% ENR growth for 2026, with quarterly outlooks for originations, provisions, and net credit loss rates improving sequentially.