Regional Management Corp. (NYSE:RM) Q1 2024 Earnings Call Transcript May 1, 2024 5:00 PM ET Company Participants Garrett Edson - IR Rob Beck - President and CEO Harp Rana - CFO Conference Call Participants John Hecht - Jefferies Matt Dhane - Tieton Capital Management Operator Greetings and welcome to the Regional Management's First Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. As a reminder, this ...

May 1, 2024 Legal Disclosures This document contains summarized information concerning Regional Management Corp. (the "Company") and the Company's business, operations, financial performance, and trends. No representation is made that the information in this document is complete. For additional financial, statistical, and business information, please see the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission (the "SEC"), ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 979 Batesville Road, Suite B Greer, South Carolina 29651 (Address of principal executive offices) (Zip Code) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period ended FORM 10-Q Commission File Number: 001-35477 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Regional Management Corp. For the quarterly period ended March 31, 2024 (E ...

Exhibit 99.1 Regional Management Corp. Announces First Quarter 2024 Results Greenville, South Carolina – May 1, 2024 – Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the first quarter ended March 31, 2024. "We had a very strong start to 2024, as we outperformed our outlook on both the top and bottom lines," said Robert W. Beck, President and Chief Executive Officer of Regional Management Corp. "We generated net income of $15.2 million and diluted ea ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35477 Regional Management Corp. (Exact name of registrant as specified in its charter) Delaware 57-0847115 (State or other jurisdiction of inco ...

Regional Management Corp. (NYSE:RM) Q4 2023 Earnings Conference Call February 7, 2024 5:00 PM ET Company Participants Garrett Edson - Managing Director, ICR Robert Beck - President and CEO Harp Rana - EVP and CFO Conference Call Participants John Hecht - Jefferies Zachary Oster - JMP Securities William Dezellem - Tieton Capital John Rowan - Janney Operator Thank you for standing by. This is the conference operator. Welcome to the Regional Management Fourth Quarter 2023 Earnings Call. As a reminder, all part ...

Legal Disclosures 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 Regional Management Corp. (Exact name of registrant as specified in its charter) Delaware 57-0847115 (State or other jurisdiction of incorporation or organization) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period ended ...

Financial Data and Key Metrics Changes - The company generated net income of $8.8 million and diluted earnings per share of $0.91, driven by high-quality portfolio and revenue growth [16][22] - Total revenue grew 7% to $141 million, with total revenue yield and interest and fee yield at 32.7% and 29% respectively, although year-over-year yield declined due to a shift towards larger, higher quality loans [51][52] - The allowance for credit losses increased slightly, with a reserve rate expected to end the year between 10.4% and 10.6% [54] Business Line Data and Key Metrics Changes - Direct mail originations increased by 12%, while branch and digital originations decreased by 1% and 10% respectively, reflecting a deliberate reduction in originations to enhance credit quality [23] - The small loan portfolio grew by $30 million or 7% in the third quarter, supporting future revenue yield despite higher expected net credit losses [24] Market Data and Key Metrics Changes - The company ended the third quarter with a 30-plus-day delinquency rate of 7.3%, up 40 basis points from the second quarter, but consistent with normal seasonal trends [18] - The net credit loss rate in the third quarter was 11%, with expectations for approximately $52 million in net credit losses in the fourth quarter [52][27] Company Strategy and Development Direction - The company is focused on maintaining a conservative credit posture while preparing to lean back into growth when economic conditions improve [8][46] - Investments in technology, digital initiatives, and data analytics, including artificial intelligence, are seen as critical for achieving strategic objectives and sustainable growth [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, hoping for a stronger economic environment while remaining cautious due to uncertainties such as student loan repayments and geopolitical events [3][17] - The company plans to navigate the challenging economic environment by focusing on strong execution of its core business and maintaining a tight credit box [10][60] Other Important Information - The company has $613 million of unused capacity on its credit facility and $179 million of available liquidity, demonstrating its ability to protect against short-term disruptions [32] - A dividend of $0.30 per common share was declared for the fourth quarter, to be paid on December 13, 2023 [114] Q&A Session Summary Question: What are the expected losses in the fourth quarter? - Management anticipates consistent roll rates from prior quarters with a normal seasonal lift, despite elevated levels [63] Question: How does the loss experience differ between new and recurring customers? - The company has shifted its focus to present and former borrowers, which historically perform better than new borrowers [66][82] Question: What is the outlook for the fourth quarter and 2024? - The fourth quarter will serve as a basis for projecting 2024, with expectations of stress from earlier vintages but good performance from more recent vintages [90] Question: Will the trend of high-quality loans continue? - The company plans to continue leaning into auto-secured loans and maintaining a mix of high-quality loans [94] Question: How are expenses being managed? - The company is focused on ensuring that every dollar spent drives the business forward while maintaining profitability [71]

Net income of $8.8 million and diluted EPS of $0.91 Total revenue increased $9.4 million, or 7.2% • Interest and fee income up 7.8% due to a 10.0% increase in ANR • Insurance income, net decreased by 5.0% due to lower premiums Provision for credit losses increased $2.9 million, or 5.9% • Net credit losses up $11.7 million from higher ANR and macro conditions • Lower provision build of $8.8 million year-over-year Operating expense ratio improved 0.5% • Revenue growth outpaced G&A expense growth by 2.4x compa ...