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, 2026
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period ended
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
incorporation or organization)
(I.R.S. Employer
Identification No.)
979 Batesville Road, Suite B
Greer, South Carolina
29651
(Address of principal executive offices)
(Zip Code)
(864) 448-7000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol
Name of Each Exchange on Which Registered
Common Stock, $0.10 par value
RM
New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of October 27, 2026, the registrant had outstanding 8,947,424 shares of Common Stock, $0.10 par value.
QUARTERLY Report on Form 10-Q
Fiscal Quarter Ended September 30, 2026
Table of Contents
Page
GLOSSARY
3
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets Dated September 30, 2026 and December 31, 2025
5
Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2026 and 2025
6
Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2026 and 2025
7
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2026 and 2025
9
Notes to Consolidated Financial Statements
11
Note 1. Nature of Business
Note 2. Basis of Presentation and Significant Accounting Policies
Note 3. Finance Receivables, Credit Quality Information, and Allowance for Credit Losses
15
Note 4. Restricted Available-for-Sale Investments
22
Note 5. Variable Interest Entities
23
Note 6. Debt
24
Note 7. Stockholders’ Equity
25
Note 8. Fair Value Measurements
26
Note 9. Income Taxes
27
Note 10. Earnings Per Share
Note 11. Share-Based Compensation
Note 12. Commitments and Contingencies
29
Note 13. Segment Reporting
30
Note 14. Subsequent Events
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
31
Item 3. Quantitative and Qualitative Disclosures About Market Risk
46
Item 4. Controls and Procedures
47
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
48
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 5. Other Information
Item 6. Exhibits
49
SIGNATURE
Terms and abbreviations used in this report are defined below:
Term or Abbreviation
Definition
2015 Plan
2015 Long-Term Incentive Plan
2024 Plan
2024 Long-Term Incentive Plan
AFS
available-for-sale
APR
annual percentage rate
ASU
Accounting Standards Update
Board
the Company's Board of Directors
B(W)
comparatively better shown as positives, comparatively worse shown as negatives
CODM
Chief Operating Decision Maker
Column
Column National Association, a national banking association
Company
Cost of funds
annualized (as applicable) interest expense as a percentage of average net finance receivables
Debt balance
the balance for each respective debt agreement, composed of principal balance and accrued interest
Delinquency rate
delinquent loans outstanding as a percentage of ending net finance receivables
Efficiency ratio
annualized (as applicable) general and administrative expenses as a percentage of total revenue
Exchange Act
the Securities Exchange Act of 1934, as amended
FASB
Financial Accounting Standards Board
FICO
Fair Isaac Corporation
Funded debt-to-equity ratio
debt divided by total stockholders' equity
GAAP
U.S. Generally Accepted Accounting Principles
Inc (Dec)
comparative increases shown as positives, comparative decreases shown as negatives
Interest and fee yield
annualized (as applicable) interest and fee income as a percentage of average net finance receivables
Issuance Trust
the Company's indirect SPE through which private offerings and sales consisting of the issuance of classes of fixed-rate, asset-backed notes are completed
KTIP
key team member incentive program
LGD
loss given default
LTIP
long-term incentive program
Net credit loss rate
annualized (as applicable) net credit losses as a percentage of average net finance receivables
NQSO
nonqualified stock option
Operating expense ratio
annualized (as applicable) general and administrative expenses as a percentage of average net finance receivables
PD
probability of default
PRSU
performance restricted stock unit
QoQ
quarter-over-quarter
RMIT
Regional Management Issuance Trust
RMR
Regional Management Receivables
RMR III
Regional Management Receivables III, LLC
RMR IV
Regional Management Receivables IV, LLC
RMR V
Regional Management Receivables V, LLC
RMR VI
Regional Management Receivables VI, LLC
RMR VII
Regional Management Receivables VII, LLC
RSA
restricted stock award
RSU
restricted stock unit
Rule 10b5-1 trading arrangement
a trading arrangement for the sale of shares of the Company’s common stock that is intended to satisfy the affirmative defense conditions of Exchange Act Rule 10b5-1(c)
SEC
Securities and Exchange Commission
SOFR
secured overnight financing rate
SPE
wholly owned, bankruptcy-remote, special purpose entity
Stockholders' equity ratio
total stockholders' equity as a percentage of total assets
VIE
variable interest entity
YoY
year-over-year
4
Part I – financial information
ITEM 1. FINANCIAL STATEMENTS.
Regional Management Corp. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except par value amounts)
(Unaudited)
September 30, 2026
December 31, 2025
Assets
Cash
$
7,628
3,823
Net finance receivables
2,209,925
2,140,199
Unearned insurance premiums
(49,073
)
(52,896
Allowance for credit losses
(230,800
(220,900
Net finance receivables, less unearned insurance premiums and allowance for credit losses
1,930,052
1,866,403
Restricted cash
133,276
94,174
Lease assets
45,903
43,828
Intangible assets
36,355
31,781
Restricted AFS investments
24,015
24,211
Property and equipment
12,576
13,156
Other assets
20,634
26,554
Total assets
2,210,439
2,103,930
Liabilities and Stockholders’ Equity
Liabilities:
Debt
1,749,991
1,650,764
Unamortized debt issuance costs
(4,141
(8,591
Net debt
1,745,850
1,642,173
Lease liabilities
48,018
45,968
Deferred tax liabilities, net
1,090
3,345
Accounts payable and accrued expenses
34,131
39,352
Total liabilities
1,829,089
1,730,838
Commitments and contingencies (Note 12)
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, 15,411 shares issued and 9,187 shares outstanding at September 30, 2026 and 15,168 shares issued and 9,554 shares outstanding at December 31, 2025)
1,541
1,517
Additional paid-in capital
144,101
138,666
Retained earnings
436,623
410,721
Accumulated other comprehensive loss
(392
(2
Treasury stock (6,224 shares at September 30, 2026 and 5,614 shares at December 31, 2025)
(200,523
(177,810
Total stockholders’ equity
381,350
373,092
Total liabilities and stockholders’ equity
See accompanying notes to consolidated financial statements.
Consolidated Statements of Comprehensive Income
(in thousands, except per share amounts)
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
Revenue
Interest and fee income
155,747
148,672
456,321
425,920
Insurance income, net
10,727
11,391
33,513
34,187
Other income
12,302
5,424
24,238
15,789
Total revenue
178,776
165,487
514,072
475,896
Expenses
Provision for credit losses
66,163
60,474
200,037
179,053
Personnel
40,546
39,517
119,321
119,243
Occupancy
7,451
7,160
22,182
20,977
Marketing
5,312
4,212
14,382
14,677
Other
15,318
13,179
42,850
38,159
Total general and administrative expenses
68,627
64,068
198,735
193,056
Interest expense
24,148
21,971
70,064
62,168
Income before income taxes
19,838
18,974
45,236
41,619
Income taxes
4,725
4,618
10,569
10,116
Net income
15,113
14,356
34,667
31,503
Net income per common share:
Basic
1.68
1.53
3.83
3.32
Diluted
1.61
1.42
3.63
3.15
Weighted-average common shares outstanding:
8,975
9,370
9,041
9,493
9,362
10,133
9,542
10,000
Other comprehensive loss, net of tax
Unrealized loss on restricted AFS investments
(437
(9
(496
(91
Income taxes on unrealized items
94
1
106
19
(343
(8
(390
(72
Total comprehensive income
14,770
14,348
34,277
31,431
Consolidated Statements of Stockholders’ Equity
(in thousands)
As of and for the Three Months Ended September 30, 2026
Accumulated
Common Stock
Additional Paid-In
Retained
Other Comprehensive
Treasury
Shares
Amount
Capital
Earnings
Loss
Stock
Total
Beginning balance
15,298
1,530
142,805
424,469
(49
(190,424
378,331
Cash dividends declared
(2,959
Issuance of restricted stock
92
Exercise of stock options
63
Repurchase of common stock
(10,099
Shares withheld related to net share settlement
(42
(5
(734
(739
Share-based compensation
2,039
Other comprehensive loss
Ending balance
15,411
As of and for the Three Months Ended September 30, 2025
15,225
1,522
137,129
389,557
(165,255
362,951
(3,069
Forfeiture of restricted stock
2
(5,051
(19
(175
(177
2,914
15,220
139,868
400,844
(10
(170,306
371,918
As of and for the Nine Months Ended September 30, 2026
15,168
(8,765
208
21
(21
105
(22,713
(70
(1,034
(1,042
6,490
As of and for the Nine Months Ended September 30, 2025
Income (Loss)
14,921
1,492
130,725
378,482
62
(153,683
357,078
(9,141
286
(29
(16,623
(33
(3
(264
(267
9,436
8
Consolidated Statements of Cash Flows
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
14,694
11,723
Amortization of deferred fees and costs
(8,724
(12,114
Loss on disposal of intangibles, property, and equipment
225
293
6,236
9,059
Deferred income taxes, net
(2,149
8,718
Changes in operating assets and liabilities:
Increase (decrease) in unearned insurance premiums
(3,823
2,919
Increase in lease assets
(2,075
(2,340
(Increase) decrease in other assets
7,231
(1,835
Decrease in accounts payable and accrued expenses
(4,065
(299
Increase in lease liabilities
2,050
2,327
Net cash provided by operating activities
244,304
229,007
Cash flows from investing activities:
Originations and purchases of finance receivables
(1,425,863
(1,428,980
Repayments of finance receivables
1,173,688
1,114,056
Purchases of intangible assets
(10,242
(9,334
Purchases of property and equipment
(3,402
(3,307
Purchases of restricted AFS investments
(22,060
(19,910
Proceeds from maturities of restricted AFS investments
22,377
19,460
Net cash used in investing activities
(265,502
(328,015
Cash flows from financing activities:
Advances on revolving credit facilities
1,224,763
1,356,785
Payments on revolving credit facilities
(1,037,152
(1,290,457
Advances on securitizations
265,000
Payments on securitizations
(89,039
(228,134
Payments for debt issuance costs
(1,468
(5,440
Taxes paid related to net share settlement of equity awards
(1,560
(592
Payments for cash dividends
(8,778
(8,768
Repurchases of common stock
(22,661
(16,478
Net cash provided by financing activities
64,105
71,916
Net change in cash and restricted cash
42,907
(27,092
Cash and restricted cash at beginning of period
97,997
135,635
Cash and restricted cash at end of period
140,904
108,543
Supplemental cash flow information:
Interest paid
63,962
57,281
Income taxes paid
6,303
6,362
Operating leases paid
10,710
9,648
Non-cash lease assets obtained in exchange for operating lease liabilities
10,411
9,906
The following table reconciles cash and restricted cash from the Consolidated Balance Sheets to the statements above:
September 30, 2025
4,084
104,459
10
The Company was incorporated and began operations in 1987. The Company is engaged in the consumer finance business, offering large loans, small loans, and related payment and collateral protection insurance products. As of September 30, 2026, the Company operated under the name “Regional Finance” online and in branch locations in 20 states across the United States.
The Company’s large and small loan portfolio is comprised of branch loan receivables and convenience check receivables. Branch large and small loan receivables are loans to customers, the majority of which are secured by non-essential household goods and, in some instances, an automobile. Convenience check receivables are unsecured loans originated by mailing checks to customers based on a pre-screening process that includes a review of the prospective customer’s credit profile provided by national credit reporting bureaus or data aggregators. A recipient of a convenience check is able to enter into a loan by endorsing and depositing or cashing the check.
The Company has entered into a bank partnership program with Column, under which the Company acts as Column’s service provider and program manager in connection with Column's consumer installment lending program. Under this arrangement, Column is the lender on each loan, each loan application is approved or denied based on a credit policy that Column approves and controls, and Column funds each loan. The Company performs marketing and application processing activities on Column’s behalf and subject to Column’s oversight and receives marketing and processing fee income. The Company also services the loans on Column's behalf and receives servicing fee income. Following origination, Column may, in its discretion, continue to retain loans or offer them for sale to the Company. The Company purchases loans that Column offers for sale pursuant to a purchase agreement with Column, except in limited circumstances.
Loans are either originated directly through the Company’s state-licensed operations or purchased via the Company’s bank partnership.
The Company’s loan volume and contractual delinquency follow seasonal trends. Demand for the Company’s loans is typically highest during the second, third, and fourth quarters, which the Company believes is largely due to customers borrowing money for vacation, back-to-school, and holiday spending. Loan demand has generally been the lowest during the first quarter, which the Company believes is largely due to the timing of income tax refunds. Delinquencies generally reach their lowest point in the first half of the year and rise in the second half of the year. Changes in the portfolio could result in releases of the allowance for credit losses in periods of portfolio liquidation and increases to the allowance for credit losses in periods of portfolio growth. Consequently, the Company experiences seasonal fluctuations in its operating results. However, changes in macroeconomic factors, including inflation, higher interest rates, and geopolitical conflict, have impacted the Company’s typical seasonal trends for loan volume and delinquency.
Basis of presentation: The consolidated financial statements of the Company have been prepared in accordance with SEC regulations and GAAP for interim financial information and, accordingly, do not include all information and note disclosures required by GAAP for complete financial statements. The interim financial statements in this Quarterly Report on Form 10-Q have not been audited by an independent registered public accounting firm in accordance with standards of the Public Company Accounting Oversight Board (United States), but in the opinion of management, the interim financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows in accordance with GAAP. These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the SEC.
Significant accounting policies: The following is a description of significant accounting policies used in preparing the financial statements. The accounting and reporting policies of the Company are in accordance with GAAP.
Principles of consolidation: The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company operates through a separate wholly owned subsidiary in each state. The Company also consolidates VIEs when it is considered to be the primary beneficiary of the VIE because it has (i) power over the significant activities of the VIE and (ii) the obligation to absorb losses or the right to receive returns that could be significant to the VIE.
Variable interest entities: The Company transfers pools of loans to SPEs to secure debt for general funding purposes. These entities have the limited purpose of acquiring finance receivables, in addition to holding and making payments on the related debts. Assets transferred to each SPE are legally isolated from the Company and its affiliates, as well as the claims of the Company’s and its affiliates’
creditors. Further, the assets of each SPE are owned by such SPE and are not available to satisfy the debts or other obligations of the Company or any of its affiliates. The Company continues to service the finance receivables transferred to the SPEs. The lenders and investors in the debt issued by the SPEs generally only have recourse to the assets of the SPEs and do not have recourse to the general credit of the Company.
The SPEs’ debt arrangements are structured to provide credit enhancements to the lenders and investors, which may include overcollateralization, subordination of interests, excess spread, and reserve funds. These enhancements, along with the isolated finance receivables pools, increase the creditworthiness of the SPEs above that of the Company as a whole. This increases the marketability of the Company’s collateral for borrowing purposes, leading to more favorable borrowing terms, improved interest rate risk management, and additional flexibility to grow the business.
The SPEs are considered VIEs under GAAP and are consolidated into the financial statements of their primary beneficiary. The Company is considered to be the primary beneficiary of the SPEs because it has (i) power over the significant activities through its role as servicer of the finance receivables under each debt arrangement, (ii) the obligation to absorb losses that could be significant through note investment, if applicable, and (iii) the obligation to absorb losses or the right to receive returns that could be significant through the Company’s interest in the monthly residual cash flows of the SPEs.
Consolidation of VIEs results in these transactions being accounted for as secured borrowings; therefore, the pooled receivables and the related debts remain on the consolidated balance sheet of the Company. Each debt is secured solely by the assets of the VIEs and not by any other assets of the Company. The assets of the VIEs are the only source of funds for repayment on each debt, and restricted cash held by the VIEs can only be used to support payments on the debt. The Company recognizes revenue and provision for credit losses on the finance receivables of the VIEs and interest expense on the related secured debt.
Use of estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities for the periods indicated in the financial statements. Actual results could differ from those estimates.
Estimates that are susceptible to change relate to the determination of the allowance for credit losses, the valuation of deferred tax assets and liabilities, and the fair value of financial instruments.
Recent accounting pronouncements: In November 2024, the FASB issued ASU 2024-03, enhancing the disclosures about a company’s expenses. The amendment, among other things, improves these disclosures by requiring disaggregated expense information about a company’s expense types. The amendments in this update are effective for annual periods beginning after December 15, 2026, and early adoption is permitted. The enhanced expense guidance can be applied on either a prospective (for financial statements issued during reporting periods after the effective date of this ASU) or retrospective (to any or all prior periods presented) basis. The Company is currently evaluating the impact of this update on its consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, amending the criteria for capitalization of internal-use software costs. The amendment, among other things, removes references to development stages and requires consideration of whether significant development uncertainty is present as part of the recognition threshold. The amendments in this update are effective for annual periods beginning after December 15, 2027, and early adoption is permitted as of the beginning of an annual reporting period. The amended guidance can be applied on a prospective, modified, or retrospective basis. The Company is currently evaluating the impact of this update on its consolidated financial statements.
Net finance receivables: Generally, the Company classifies finance receivables as held for investment based on management’s intent at the time of origination. The Company determines classification on a receivable-by-receivable basis. The Company classifies finance receivables as held for investment due to its ability and intent to hold them until their contractual maturities. Net finance receivables consist of the Company’s installment loans. The Company carries net finance receivables at amortized cost, which includes remaining principal balance, accrued interest, and net unamortized deferred origination costs and unamortized fees.
Finance receivable fees and costs: Non-refundable fees received and direct costs (personnel and digital loan origination costs) incurred for the origination of finance receivables are deferred and recognized to interest income over their contractual lives using the constant yield method. Unamortized amounts are recognized in interest income at the time that finance receivables are paid in full, renewed, or charged off.
The Company pays a purchase premium to the originating bank for loans acquired under the bank partnership program. This purchase premium represents additional consideration paid to the originating bank and is capitalized as part of the amortized cost basis of the acquired loans. The purchase premium is amortized as a reduction of interest income over the estimated life of the related loans using
12
the effective interest method. Unamortized amounts are recognized in interest income at the time that finance receivables are paid in full, renewed, or charged off.
Nonaccrual status: Accrual of interest income on finance receivables is suspended when an account becomes 90 days delinquent. If the account is charged off, the accrued interest income is reversed as a reduction of interest and fee income. Interest received on such loans is accounted for on the cash-basis method, until qualifying for return to accrual. Under the cash-basis method, interest income is recorded when the payment is received. Generally, loans resume accruing interest when the past due status is brought below 90 days. Certain loan modification programs allow for past due status to be brought current but remain in nonaccrual status until payment activity is re-established. The Company made a policy election to not record an allowance for credit losses related to accrued interest because it has nonaccrual and charge-off policies that result in the timely suspension and reversal of accrued interest.
Allowance for credit losses: The allowance for credit losses is based on historical credit experience, current conditions, and reasonable and supportable economic forecasts. The historical loss experience is adjusted for quantitative and qualitative factors that are not fully reflected in the historical data. In determining its estimate of expected credit losses, the Company evaluates information related to credit metrics, changes in its lending strategies and underwriting practices, and the current and forecasted direction of the economic and business environment. These metrics include, but are not limited to, loan portfolio mix and growth, unemployment, credit loss trends, delinquency trends, changes in underwriting, and operational risks.
The Company selected a PD / LGD model to estimate its base allowance for credit losses, in which the estimated loss is equal to the product of PD and LGD. Historical net finance receivables are tracked over the term of the pools to identify the incidences of loss (PDs) and the average severity of losses (LGDs).
To enhance the precision of the allowance for credit loss estimate, the Company evaluates its finance receivable portfolio on a pool basis and segments each pool of finance receivables with similar credit risk characteristics. As part of its evaluation, the Company considers 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, the Company selected the following segmentation: product type, FICO score, and delinquency status.
As finance receivables are originated or purchased, 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). Subsequent changes to the contractual terms that are a result of re-underwriting are not included in the finance receivable’s contractual life (considering the effect of prepayments). The Company uses its segmentation loss experience to forecast expected credit losses. Historical information about losses generally provides a basis for the estimate of expected credit losses. The Company also considers the need to adjust historical information to reflect the extent to which current conditions differ from the conditions that existed for the period over which historical information was evaluated. These adjustments to historical loss information may be qualitative or quantitative in nature.
Reasonable and supportable macroeconomic forecasts are required for the Company’s allowance for credit loss model. The Company engaged a major rating service to assist with compiling a reasonable and supportable forecast. The Company reviews macroeconomic forecasts to use in its allowance for credit losses. The Company adjusts the historical loss experience by relevant qualitative factors for these expectations. The Company does not require reversion adjustments, as the contractual lives of its portfolio are shorter than its available forecast periods.
The Company charges credit losses against the allowance for all products when an account reaches 180 days contractually delinquent, subject to certain exceptions. The Company’s customer accounts without a lien on a vehicle in a confirmed bankruptcy are charged off in the month following the bankruptcy notification or at 60 days contractually delinquent, subject to certain exceptions. Deceased borrower accounts are charged off in the month following the proper notification of passing, with the exception of borrowers with credit life insurance. Subsequent recoveries of amounts charged off, if any, are credited to the allowance.
Restricted cash: Restricted cash includes cash for which the Company’s ability to withdraw funds is contractually limited. The Company’s restricted cash consists of cash reserves that are maintained as collateral for potential credit life insurance claims, cash restricted for debt servicing of the Company’s revolving warehouse credit facilities and securitizations, and cash reserves that are maintained for obligations with regard to the Company’s bank partnership program.
Restricted AFS investments: The Company classifies its investments in debt securities that were purchased with the Company’s restricted cash as restricted AFS investments and carries the investments at fair value. Unrealized gains and losses, net of taxes, are excluded from earnings and reported in other comprehensive income or loss until realized. The unrealized gains and losses, net of taxes, are recorded on the consolidated balance sheet in accumulated other comprehensive income or loss in stockholders’ equity.
13
Realized gains and losses from the sale of AFS investments are specifically identified and reclassified from accumulated other comprehensive income or loss and included within earnings on the consolidated statement of income.
Income recognition: Interest income is recognized using the interest method (constant yield method). Therefore, the Company recognizes revenue from interest at an equal rate over the term of the loan. Unearned finance charges on pre-compute contracts are rebated to customers utilizing statutory methods, which in many cases is the sum-of-the-years’ digits method. The difference between income recognized under the constant yield method and the statutory method is recognized as an adjustment to interest income at the time of rebate.
The Company recognizes income on credit life insurance, credit personal property insurance, and vehicle single interest insurance using the sum-of-the-years’ digits or straight-line methods over the terms of the policies. The Company recognizes income on credit accident and health insurance using the average of the sum-of-the-years’ digits and the straight-line methods over the terms of the policies. The Company recognizes income on credit involuntary unemployment insurance using the straight-line method over the terms of the policies. Rebates are computed using statutory methods, which in many cases match the GAAP method, and where it does not match, the difference between the GAAP method and the statutory method is recognized in income at the time of rebate. Fee income for non-file insurance is recognized using the sum-of-the-years’ digits method over the loan term.
The Company earns marketing and processing fee income for services provided in connection with the origination of loans under the bank partnership program. These fees represent consideration for the Company's role in facilitating loan origination on the bank's behalf and are recognized within other income at origination.
Charges for late fees are recognized as income when collected.
Share-based compensation: The Company measures compensation expense for share-based awards at estimated fair value and recognizes compensation expense over the service period for awards expected to vest. In addition, compensation expense for certain performance awards may be impacted by the probability of certain financial goals being achieved over the relevant performance period. The Company uses the closing stock price on the date of grant as the fair value of RSAs, performance-contingent RSUs, and service-based RSUs. The fair value of NQSOs is determined using the Black-Scholes valuation model, and the fair value of PRSUs is determined using the Monte Carlo valuation model. When applicable, the Black-Scholes and Monte Carlo models require the input of assumptions, including expected volatility, expected dividends, expected term, risk-free interest rate, and a discount associated with post-vest holding restrictions, changes to which can affect the fair value estimate. Expected volatility is based on the Company’s historical stock price volatility. Expected dividends are calculated using the expected dividend yield (annualized dividends divided by the grant date stock price). The expected term is calculated using the simplified method (average of the vesting and original contractual terms) due to insufficient historical data to estimate the expected term. The risk-free rate is based on the zero-coupon U.S. Treasury bond rate over the expected term of the awards. The estimated discount associated with post-vest holding restrictions is calculated using a blend of the Finnerty and Chaffe models. In addition, the estimation of share-based awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised.
The Company allows for the settlement of share-based awards on a net share basis. With net share settlement, the employee does not surrender any cash or shares upon the exercise of stock options or the vesting of stock awards or stock units. Rather, the Company withholds the number of shares with a value equivalent to the option exercise price (for stock options) and the statutory tax withholding (for all share-based awards). Net share settlements have the effect of reducing the number of shares that would have otherwise been issued as a result of exercise or vesting.
The Company issues PRSUs and RSAs to certain members of senior management under the Company’s LTIP. Prior to 2026, the Company has issued NQSOs, PRSUs, performance-contingent RSUs, service-based RSUs, and RSAs. Recurring annual grants are made at the discretion of the Board. The annual grants are subject to cliff- and graded-vesting, generally concluding at the end of the third calendar year and subject to continued employment or as otherwise provided in the underlying award agreements. Vested PRSUs are subject to an additional one-year holding period following the vesting date. The actual value of the PRSUs that may be earned can range from 0% to 150% of target based on relative total shareholder return, plus an additive 20% based on pre-provision return on assets over the performance period, resulting in a maximum payout of 170%. PRSUs granted prior to 2025 may earn 0% to 150% of target based on achievement of total shareholder return performance concluding at the end of the third calendar year.
The Company also has a KTIP for certain other members of senior management. Recurring annual participation in the program is at the discretion of the Board and executive management. The annual grants are subject to graded-vesting, generally concluding at the end of the third calendar year and subject to continued employment or as otherwise provided in the underlying award agreements.
14
From time to time, the Company issues stock awards and other long-term incentive awards in conjunction with employment offers to select new employees and retention grants to select existing employees. The Company issues these awards to attract and retain talent and to provide market competitive compensation. The grants have various vesting terms, including fully-vested awards at the grant date, cliff-vesting, and graded-vesting over periods of up to five years (subject to continued employment or as otherwise provided in the underlying award agreements).
The Company awards its non-employee directors a cash retainer and shares of restricted common stock. The RSAs are granted on the fifth business day following the Company’s annual meeting of stockholders and fully vest upon the earlier of the first anniversary of the grant date or the completion of the directors’ annual service to the Company (so long as the period between the date of the annual stockholders’ meeting related to the grant date and the date of the next annual stockholders’ meeting is not less than 50 weeks).
The exercise price of all stock options is equal to the Company’s closing stock price on the date of grant. Stock options are subject to various vesting terms, including graded- and cliff-vesting over periods of up to five years. In addition, stock options vest and become exercisable in full or in part under certain circumstances, including following the occurrence of a change of control (as defined in the option award agreements). Participants who are awarded options must exercise their options within a maximum of ten years of the grant date.
Net finance receivables for the periods indicated consisted of the following:
Dollars in thousands
Large loans
1,742,013
1,593,171
Small loans
467,912
547,028
Net finance receivables included net deferred origination fees and costs of $14.5 million and $15.1 million as of September 30, 2026 and December 31, 2025, respectively.
The credit quality of the Company’s finance receivable portfolio is dependent on the Company’s ability to enforce sound underwriting standards, maintain diligent servicing of the portfolio, and respond to changing economic conditions as it manages and grows its portfolio. The allowance for credit losses uses FICO scores and delinquency as key data points in estimating the allowance. The Company uses six FICO band categories to assess FICO scores. The first three FICO band categories include subprime FICO scores below 620. The fourth and fifth FICO band categories include near-prime FICO scores ranging from 620 to 659. The sixth FICO band category includes prime FICO scores of 660 or higher.
Net finance receivables by product, FICO band at origination, and origination year as of September 30, 2026 are as follows:
Net Finance Receivables by Origination Year
2024
2023
2022
Prior
Total Net Finance Receivables
Large Loans:
FICO Band
101,868
66,407
18,935
7,430
2,405
868
197,913
68,401
39,188
10,288
2,987
801
166
121,831
103,201
64,214
17,478
6,156
2,007
194
193,250
134,074
85,701
25,042
9,309
3,078
313
257,517
142,007
94,337
28,911
10,606
3,715
501
280,077
357,244
233,008
68,565
25,082
6,892
634
691,425
906,795
582,855
169,219
61,570
18,898
2,676
Small Loans:
61,372
27,251
3,326
483
81
92,540
26,795
11,755
1,496
121
40,179
38,056
16,755
1,969
172
56,985
40,229
20,339
2,602
199
17
63,388
38,629
22,776
3,764
174
65,362
86,292
52,957
9,929
261
16
149,458
291,373
151,833
23,086
1,410
167
43
Total Loans:
163,240
93,658
22,261
7,913
2,486
895
290,453
95,196
50,943
11,784
3,108
813
162,010
141,257
80,969
19,447
6,328
2,031
203
250,235
174,303
106,040
27,644
9,508
3,095
315
320,905
180,636
117,113
32,675
10,780
3,732
503
345,439
443,536
285,965
78,494
25,343
6,908
637
840,883
1,198,168
734,688
192,305
62,980
19,065
2,719
Net finance receivables by product, FICO band at origination, and origination year as of December 31, 2025 are as follows:
2021
119,724
36,692
5,034
1,453
382
178,510
75,189
21,423
6,854
2,086
383
105,983
121,142
35,473
13,157
5,398
739
51
175,960
160,692
50,359
20,102
8,588
1,130
77
240,948
173,379
58,320
22,357
9,995
1,893
90
266,034
411,650
133,932
55,991
20,631
3,397
135
625,736
1,061,776
336,199
133,686
51,732
8,995
783
82,635
12,526
1,937
267
56
97,434
36,601
6,164
43,612
53,879
9,494
1,042
97
64,520
62,360
12,597
1,428
76
76,468
63,637
16,817
1,732
91
82,283
136,833
42,405
3,365
98
182,711
435,945
100,003
10,287
691
84
18
202,359
49,218
17,162
5,301
1,509
395
275,944
111,790
27,587
7,637
2,148
385
149,595
175,021
44,967
14,199
5,495
747
240,480
223,052
62,956
21,530
8,664
1,134
80
317,416
237,016
75,137
24,089
10,086
1,898
348,317
548,483
176,337
59,356
20,729
3,406
136
808,447
1,497,721
436,202
143,973
52,423
9,079
Credit losses by product and origination year for the periods indicated are as follows:
Nine Months Ended September 30, 2026
Total Credit Losses
3,268
73,566
32,056
11,679
4,286
934
125,789
3,554
58,175
16,600
1,896
154
80,388
6,822
131,741
48,656
13,575
4,440
943
206,177
Nine Months Ended September 30, 2025
2,765
50,992
32,665
11,856
2,956
493
101,727
4,191
55,071
14,919
1,491
75,808
6,956
106,063
47,584
13,347
3,062
523
177,535
The contractual delinquency of the net finance receivables portfolio by product and aging for the periods indicated are as follows:
Large
Small
%
Current
1,491,056
85.6
369,827
79.0
1,860,883
84.2
1 to 29 days past due
139,371
8.0
43,886
9.4
183,257
8.3
Delinquent accounts:
30 to 59 days
30,231
1.8
13,736
3.0
43,967
2.0
60 to 89 days
25,136
1.4
11,801
2.5
36,937
1.7
90 to 119 days
21,138
1.1
10,447
2.2
31,585
120 to 149 days
18,464
9,463
27,927
1.3
150 to 179 days
16,617
1.0
8,752
1.9
25,369
Total delinquency
111,586
6.4
54,199
11.6
165,785
7.5
Total net finance receivables
100.0
Net finance receivables in nonaccrual status
71,030
4.1
33,515
7.2
104,545
4.7
1,372,102
86.1
437,005
79.9
1,809,107
84.5
121,113
7.6
48,745
8.9
169,858
26,940
14,295
2.6
41,235
23,576
1.5
13,582
37,158
18,957
1.2
11,861
30,818
16,715
11,050
27,765
13,768
0.9
10,490
24,258
99,956
6.3
61,278
11.2
161,234
62,351
3.9
38,269
7.0
100,620
The accrual of interest income on finance receivables is suspended when an account becomes 90 days delinquent. If a loan is charged off, the accrued interest is reversed as a reduction of interest and fee income. During the three months ended September 30, 2026 and 2025, the Company reversed $7.3 million and $6.3 million of accrued interest as reductions of interest and fee income, respectively. The Company reversed $23.3 million and $20.7 million of accrued interest as reductions of interest and fee income for the nine months ended September 30, 2026 and 2025, respectively.
The following are changes in the allowance for credit losses by product for the periods indicated:
As of and For the Three Months Ended September 30, 2026
162,000
62,000
224,000
45,873
20,290
Credit losses
(40,576
(24,178
(64,754
Recoveries
3,503
1,888
5,391
170,800
60,000
230,800
Allowance as percentage of net finance receivables
9.8
12.8
10.4
As of and For the Three Months Ended September 30, 2025
138,110
64,690
202,800
35,215
25,259
(31,332
(23,966
(55,298
2,537
1,487
4,024
144,530
67,470
212,000
1,512,140
540,877
2,053,017
9.6
12.5
10.3
As of and For the Nine Months Ended September 30, 2026
152,300
68,600
220,900
133,894
66,143
(125,789
(80,388
(206,177
10,395
5,645
16,040
As of and For the Nine Months Ended September 30, 2025
133,506
65,994
199,500
105,904
73,149
(101,727
(75,808
(177,535
6,847
4,135
10,982
The Company uses certain loan modification programs for borrowers experiencing financial difficulties as a loss mitigation strategy to improve collectability of the loans and assist customers through financial setbacks. The programs consist of offering payment deferrals, refinancing, and, in limited instances, settlements. Customers may also pursue financial assistance through external sources, such as filing for bankruptcy protection. Modification programs available to our customers are described in more detail below:
The information relating to modifications made to borrowers experiencing financial difficulty and their related percentage of applicable net finance receivables for the periods indicated are as follows:
Interest rate reduction
4,667
0.3
1,260
5,927
Interest rate reduction & term extension
1,088
0.1
1,242
Term extension
378
70
448
Principal forgiveness, interest rate reduction, & term extension
184
6,317
0.4
1,484
7,801
6,011
1,894
7,905
1,421
297
1,718
885
175
1,060
147
153
8,464
0.6
2,372
10,836
0.5
14,701
4,067
18,768
3,676
0.2
688
4,364
626
143
769
419
434
19,422
4,913
24,335
14,350
4,490
18,840
5,331
1,076
6,407
1,211
240
1,451
518
536
21,410
5,824
27,234
The financial effects of the modifications made to borrowers experiencing financial difficulty for the periods indicated are as follows:
Three Months Ended September 30, 2026
Loan Modification
Product
Financial Effect
Reduced the weighted-average contractual interest rate by 18.1%.
Reduced the weighted-average contractual interest rate by 29.0%.
Added a weighted-average 1.2 years to the life of loans.
Added a weighted-average 1.3 years to the life of loans.
Principal forgiveness
Reduced the amortized cost basis of the loans by $0.3 million.
Reduced the amortized cost basis of the loans by $0.1 million.
20
Three Months Ended September 30, 2025
Reduced the weighted-average contractual interest rate by 17.8%.
Reduced the weighted-average contractual interest rate by 28.6%.
Added a weighted-average 1.0 years to the life of loans.
Reduced the weighted-average contractual interest rate by 28.8%.
Added a weighted-average 1.4 years to the life of loans.
Reduced the amortized cost basis of the loans by $0.9 million.
Reduced the amortized cost basis of the loans by $0.4 million.
Reduced the weighted-average contractual interest rate by 18.2%.
Reduced the weighted-average contractual interest rate by 29.3%.
The following tables provide the amortized cost basis for modifications made to borrowers experiencing financial difficulty within the previous twelve months that subsequently defaulted. The Company defines payment default as 90 days past due for this disclosure. The respective amounts for each modification for the periods indicated are as follows:
4,230
1,313
5,543
553
133
686
72
4,870
1,454
6,324
2,828
1,185
4,013
859
197
1,056
159
181
34
3,877
1,407
5,284
6,125
1,846
7,971
842
169
1,011
35
7,074
2,034
9,108
3,706
5,134
1,159
235
1,394
232
55
58
5,117
1,701
6,818
The contractual delinquencies of loans that were modified to borrowers experiencing financial difficulty within the previous twelve months for the periods indicated are as follows:
16,718
20,450
30 - 89 days past due
3,195
940
90+ days past due
3,378
1,078
4,456
Total (1)
23,291
5,750
29,041
(1) Excludes modified finance receivables that subsequently charged off of $2.9 million and $1.1 million in large and small loans, respectively.
18,393
4,269
22,662
3,016
917
3,933
2,692
1,180
3,872
24,101
6,366
30,467
(1) Excludes modified finance receivables that subsequently charged off of $2.3 million and $0.9 million in large and small loans, respectively.
The following tables reconcile the amortized cost, gross unrealized gains and losses included in accumulated other comprehensive income or loss, and estimated fair value of the Company’s restricted AFS investments as of the periods indicated:
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Estimated Fair Value
Restricted investments
24,512
(497
24,213
The following tables include the gross unrealized losses and estimated fair values of restricted AFS investments that were in a continuous unrealized loss position, for which no allowance for credit loss has been recorded, as of the periods indicated:
Less than 12 Months
12 Months or Longer
22,000
The restricted AFS investments consist of U.S. Treasuries which are measured at fair value and include accrued interest receivables of $0.2 million and $13 thousand as of September 30, 2026 and December 31, 2025, respectively. The investments consist of highly rated securities backed by the U.S. federal government. As a result, the Company has not recorded an allowance for credit losses related to the restricted AFS investments.
The following table includes the amortized cost and estimated fair values of restricted AFS investments by contractual maturity as of the period indicated:
Due in one year
9,644
9,520
Due within one year to five years
14,868
14,495
Due within five years to ten years
Due after ten years
The Company had no gross realized gains or losses during the three and nine months ended September 30, 2026 and 2025. For additional information on the Company's restricted AFS investments, see Note 8, "Fair Value Measurements."
As part of its overall funding strategy, the Company has transferred certain finance receivables to affiliated VIEs for asset-backed financing transactions, including securitizations. The Company’s revolving warehouse credit facilities and securitizations are issued by the Company’s SPEs, which are considered VIEs under GAAP and are consolidated into the financial statements of their primary beneficiary.
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 $111.8 million and $81.8 million as of September 30, 2026 and December 31, 2025, respectively. Cash inflows from the finance receivables are distributed to the lenders/investors, the service providers, and/or the residual interest that the Company owns in accordance with a monthly contractual priority of payments. The SPEs pay a servicing fee to the Company, which is eliminated in consolidation. Distributions from the SPEs to the Company are permitted under the debt arrangements.
At each sale of receivables from the Company’s affiliates to the SPEs, the Company makes certain representations and warranties about the quality and nature of the collateralized receivables. The debt arrangements require the Company to repurchase the receivables in certain circumstances, including circumstances in which the representations and warranties made by the Company concerning the quality and characteristics of the receivables are inaccurate. Assets transferred to each SPE are legally isolated from the Company and its affiliates, as well as the claims of the Company’s and its affiliates’ creditors. Further, the assets of each SPE are owned by such SPE and are not available to satisfy the debts or other obligations of the Company or any of its affiliates.
The following table presents the assets and liabilities of the Company’s consolidated VIEs:
200
1,682,795
1,601,780
(172,435
(160,971
125,202
93,966
2,884
2,242
1,638,671
1,537,217
Liabilities
1,521,380
1,455,320
1,521,407
1,455,341
The following is a summary of the Company’s debt as of the periods indicated:
Unamortized Debt Issuance Costs (1)
Net Debt
Revolving credit facilities
458,566
(1,328
457,238
270,186
(1,747
268,439
Securitizations
1,291,425
(2,813
1,288,612
1,380,578
(6,844
1,373,734
Unused amount of revolving credit facilities (subject to borrowing base)
323,810
511,420
(1) Unamortized debt issuance costs related to the revolving warehouse credit facilities are presented within other assets in the consolidated balance sheets. These credit facilities had $2.3 million and $1.8 million in such costs as of September 30, 2026 and December 31, 2025, respectively.
Revolving Credit Facilities: The Company’s revolving credit facilities are secured by substantially all of its finance receivables and, in the case of the senior revolving credit facility, the equity interests of the majority of its subsidiaries. The Company pays unused commitment fees on its revolving credit facilities, generally based upon the average outstanding balance. Certain revolving credit facilities have a one-year amortization period following the revolving period end date, at which point the credit facility terminates. As of September 30, 2026, the Company held $7.6 million in unrestricted cash. The Company had $96.4 million of immediate available liquidity to draw down cash under its revolving credit facilities as of September 30, 2026. Each of the Company’s revolving warehouse credit facilities holds restricted cash reserves to satisfy provisions of its respective credit agreement.
The following table includes the key terms under each of the Company’s revolving credit facilities as of September 30, 2026:
Total Credit Facility
Debt Balance
Restricted Cash Reserves
Advance Rate Cap
Current Advance Rate
Unused Commitment Fee
Revolving Period End Date
Maturity Date
Senior (1)
355,000
225,798
83%
73%
0.3% - 0.9%
Aug 2028
RMR IV warehouse
125,000
54,678
689
79%
0.5%
May 2027
May 2028
RMR V warehouse
100,000
66,196
412
80%
0.4% - 0.7%
Nov 2027
Nov 2028
RMR VI warehouse
75,000
56,373
375
75%
Apr 2028
Apr 2029
RMR VII warehouse
55,521
364
76%
Oct 2027
Oct 2028
780,000
1,840
(1) The senior revolving credit facility has an additional advance rate cap of 60% of eligible delinquent renewals. As of September 30, 2026, this advance rate was 50%.
Borrowings under the revolving credit facilities bear interest, payable monthly, at a rate equal to the sum of any applicable floor, margin, and the market rate of each respective rate type that was effective as of September 30, 2026 (as follows):
Floor
Margin
Rate Type
Effective Interest Rate
Senior
2.8%
1-month SOFR
6.4%
2.3%
5.9%
2.1%
Conduit
6.2%
5.7%
Securitizations: From time to time, the Company and its SPE, RMR III, complete private offerings and sales of asset-backed notes through the Company’s Issuance Trusts. The asset-backed notes are secured by finance receivables and other related assets that RMR III purchased from the Company, which RMR III then sells and transfers to the Issuance Trusts. The Issuance Trusts hold restricted cash reserves to satisfy provisions of the transaction documents. Borrowings under the securitizations bear interest, payable monthly, and principal repayments begin the month subsequent to the end of the revolving period. Prior to maturity, the Company may redeem the notes in full, but not in part, at its option on securitization-specific, designated dates. No payments of principal of the notes will be made during the revolving periods.
The following table includes the key terms under each of the Company’s securitizations as of September 30, 2026:
Issue Date
Issue Amount
RMIT 2021-2
Jul 2021
200,000
172,080
2,083
2.4%
Jul 2026
Aug 2033
RMIT 2021-3
Oct 2021
1,471
3.9%
Sep 2026
Oct 2033
RMIT 2022-1
Feb 2022
250,000
36,895
2,646
5.8%
Feb 2025
Mar 2032
RMIT 2024-1
Jun 2024
187,305
187,788
Jul 2036
RMIT 2024-2
Nov 2024
250,557
1,418
5.3%
Nov 2026
Dec 2033
RMIT 2025-1
Mar 2025
265,585
1,489
Mar 2027
Apr 2034
RMIT 2025-2
Oct 2025
252,810
253,318
1,389
4.8%
Nov 2037
1,530,115
11,574
The Company’s debt arrangements are subject to certain covenants, including monthly and annual reporting, maintenance of specified interest coverage and debt ratios, restrictions on distributions, limitations on other indebtedness, and certain other restrictions. As of September 30, 2026, the Company was in compliance with all debt covenants.
Stock repurchase program: In December 2024, the Company announced that the Board had authorized a $30 million stock repurchase program. The authorization was effective immediately and extended through December 31, 2026. In November 2025, the Company announced that the Board had approved a $30 million increase in the amount authorized under the stock repurchase program announced in December 2024, from $30 million to $60 million. The authorization was effective immediately and extends through June 30, 2027. As of September 30, 2026, the Company had repurchased 1.4 million shares of common stock at a total cost of $50.4 million, including commissions and excise taxes, over the life of the program.
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. 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. 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. 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 Company repurchased 266 thousand and 154 thousand shares of common stock for the three months ended September 30, 2026 and 2025, respectively, and 610 thousand and 506 thousand shares of common stock for the nine months ended September 30, 2026 and 2025, respectively.
Quarterly cash dividend: The Board may in its discretion declare and pay cash dividends on the Company’s common stock. The following table presents the dividends declared per share of common stock for the periods indicated:
Dividends declared per common share
0.30
0.90
See Note 14, “Subsequent Events,” for information regarding the Company’s cash dividend following the end of the fiscal quarter.
The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:
Cash and restricted cash: Cash and restricted cash is recorded at cost, which approximates fair value due to its highly liquid nature.
Restricted AFS investments: The fair value of U.S. Treasury securities is priced using an external pricing service which the Company corroborates using a secondary external vendor. For additional information on the Company's restricted AFS investments, see Note 4, “Restricted Available-for-Sale Investments.”
Net finance receivables: The Company determines the fair value of net finance receivables using a discounted cash flows methodology. The application of this methodology requires the Company to make certain estimates and judgments. These estimates and judgments include, but are not limited to, prepayment rates, default rates, loss severity, and risk-adjusted discount rates.
Debt: The Company estimates the fair value of debt using estimated credit marks based on an index of similar financial instruments (credit facilities) and projected cash flows from the underlying collateralized finance receivables (securitizations), each discounted using a risk-adjusted discount rate.
Certain of the Company’s assets estimated fair value are classified and disclosed in one of the following three categories:
Level 1 – Quoted market prices in active markets for identical assets or liabilities.
Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
Level 3 – Unobservable inputs that are not corroborated by market data.
In determining the appropriate levels, the Company performs an analysis of the assets and liabilities that are estimated at fair value. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3.
The following table includes the carrying amounts and estimated fair values of financial assets and liabilities disclosed but not carried at fair value:
CarryingAmount
EstimatedFair Value
Level 1:
Level 3:
1,958,987
1,893,834
1,721,003
1,636,727
The following table includes the carrying amounts and estimated fair values of amounts the Company measures at fair value on a recurring basis:
Level 2:
As of the periods indicated above, there were no financial assets or liabilities measured at fair value on a non-recurring basis.
The Company records interim provisions for income taxes based on an estimated annual effective tax rate. The Company recognizes discrete tax benefits or deficiencies in the income tax line of the consolidated statements of income. Generally, these discrete benefits or deficiencies are primarily the result of exercises or vestings of share-based awards.
The following table summarizes the components of income taxes for the periods indicated:
Provision for corporate taxes
4,721
4,607
10,766
10,155
Discrete tax (benefits) deficiencies
(197
(39
The following schedule reconciles the computation of basic and diluted earnings per share for the periods indicated:
Dollars in thousands, except per share amounts
Numerator:
Denominator:
Weighted-average shares outstanding for basic earnings per share
Effect of dilutive securities
387
763
507
Weighted-average shares adjusted for dilutive securities
Earnings per share:
The Company excluded outstanding shares of common stock totaling 6 thousand and 1 thousand for the three months ended September 30, 2026 and 2025, respectively, and 7 thousand and 49 thousand for the nine months ended September 30, 2026 and 2025, respectively, from the computation of diluted earnings per share because they were anti-dilutive.
On May 16, 2024, the stockholders of the Company approved the 2024 Plan, and on May 14, 2026, the stockholders of the Company re-approved the 2024 Plan as amended and restated. As of September 30, 2026, subject to adjustments as provided in the 2024 Plan, the maximum aggregate number of shares of the Company’s common stock that could be issued under the 2024 Plan could not exceed the sum of (i) 813,014 shares plus (ii) any shares remaining available for the grant of awards as of May 16, 2024 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 May 16, 2024 without the issuance of shares or pursuant to which such shares are forfeited (subject to adjustment for anti-dilution purposes as provided in the 2024 Plan). Of the amount described in the preceding sentence, no more than 813,014 shares may be issued under the 2024 Plan pursuant to the grant of incentive stock options (subject to
adjustment for anti-dilution purposes). As of September 30, 2026, there were 0.7 million shares available for grant under the 2024 Plan.
For the three months ended September 30, 2026 and 2025, the Company recorded share-based compensation expense of $1.9 million and $2.8 million, respectively. The Company recorded $6.2 million and $9.1 million in share-based compensation expense for the nine months ended September 30, 2026 and 2025, respectively. As of September 30, 2026, unrecognized share-based compensation expense to be recognized over future periods approximated $13.4 million. This amount will be recognized as expense over a weighted-average period of 1.8 years. Share-based compensation expenses are recognized on a straight-line basis over the requisite service period of the agreement. All share-based compensation is classified as equity awards. During the three months ended September 30, 2026 and 2025, share-based compensation of $0.1 million and $0.2 million, respectively, was capitalized as software. During the nine months ended September 30, 2026 and 2025, share-based compensation of $0.3 million and $0.4 million, respectively, was capitalized as software.
The following are the amounts of the awards issued under the Company’s share-based incentive programs:
Nonqualified stock options: The following table summarizes the stock option activity for the nine months ended September 30, 2026:
Dollars and shares in thousands, except per share amounts
Number of Shares
Weighted-Average Exercise Price Per Share
Weighted-Average Remaining Contractual Life (Years)
Aggregate Intrinsic Value
Options outstanding at beginning of period
24.20
Granted
Exercised
(105
17.27
Forfeited
Expired
Options outstanding at end of period
273
26.88
3.4
Options exercisable at end of period
The following table provides additional stock option information for the periods indicated:
Weighted-average grant date fair value per share
Intrinsic value of options exercised
1,620
353
2,403
754
Fair value of stock options that vested
Performance restricted stock units: The following are the weighted-average assumptions for the PRSU grants for the periods indicated:
Expected volatility
43.0
42.0
Risk-free rate
4.0
Discount for post-vesting restrictions
9.9
11.8
The following table summarizes PRSU activity for the nine months ended September 30, 2026:
Dollars and units in thousands, except per unit amounts
Units
Weighted-AverageGrant DateFair Value Per Unit
Non-vested units at beginning of period
379
27.86
102
30.42
Performance adjustment
32.40
Vested
(78
(71
26.65
Non-vested units at end of period
361
28.21
28
The following table provides additional PRSU information for the periods indicated:
Dollars in thousands, except per unit amounts
Weighted-average grant date fair value per unit
25.90
Fair value of PRSUs that vested
2,516
2,237
Performance-contingent restricted stock units: There was no performance-contingent RSU balance or activity for the three and nine months ended September 30, 2026 and 2025.
Restricted stock units: The following table summarizes service-based RSU activity for the nine months ended September 30, 2026:
29.21
The following table provides additional service-based RSU information for the periods indicated:
29.74
Fair value of RSUs that vested
Restricted stock awards: The following table summarizes RSA activity for the nine months ended September 30, 2026:
Weighted-AverageGrant DateFair Value Per Share
Non-vested shares at beginning of period
329
29.22
249
34.77
(46
26.81
(41
30.55
Non-vested shares at end of period
491
32.16
The following table provides additional RSA information for the periods indicated:
34.71
40.29
29.34
Fair value of RSAs that vested
162
1,614
1,161
In the normal course of business, the Company has been named as a defendant in legal actions in connection with its activities. Some of the actual or threatened legal actions include claims for compensatory damages or claims for indeterminate amounts of damages. The Company contests liability and the amount of damages, as appropriate, in each pending matter.
Where available information indicates that it is probable that a liability has been incurred and the Company can reasonably estimate the amount of that loss, the Company accrues the estimated loss by a charge to net income.
However, in many legal actions, it is inherently difficult to determine whether any loss is probable, or even reasonably possible, or to estimate the amount of loss. This is particularly true for actions that are in their early stages of development or where plaintiffs seek indeterminate damages. In addition, even where a loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued, it is not always possible to reasonably estimate the size of the possible loss or range of loss. Before a loss, additional loss, range of loss, or range of additional loss can be reasonably estimated for any given action, numerous issues may need to be resolved, including through lengthy discovery, following determination of important factual matters, and/or by addressing novel or unsettled legal questions.
For certain other legal actions, the Company can estimate reasonably possible losses, additional losses, ranges of loss, or ranges of additional loss in excess of amounts accrued, but the Company does not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on the consolidated financial statements.
While the Company will continue to identify legal actions where it believes a material loss to be reasonably possible and reasonably estimable, there can be no assurance that material losses will not be incurred from claims that the Company has not yet been notified of or are not yet determined to be probable, or reasonably possible and reasonable to estimate.
The Company expenses legal costs as they are incurred.
The Company has one reportable segment: consumer finance. Consolidated net income is the measure used by the CODM in evaluating the segment profit or loss of the Company. The CODM either reviews or is otherwise regularly provided with amounts for the following measures in the Company’s financial results for the periods indicated:
Interest income
145,850
138,173
426,385
395,186
Fee income
9,897
10,499
29,936
30,734
Share-based compensation expense
1,945
2,760
Depreciation and amortization expense
3,364
2,849
9,679
7,546
Income tax expense
As part of the CODM’s review and evaluation process for allocating resources, the CODM is provided with consolidated expenses and total assets as noted on the face of the Company’s Consolidated Statements of Comprehensive Income and Consolidated Balance Sheets, respectively.
The Company’s balance sheet expenditures for long-lived assets either reviewed by the CODM or otherwise regularly provided to the CODM are included in the Company’s Consolidated Statements of Cash Flows. These expenditures are represented as “Purchases of intangible assets,” “Purchases of property and equipment,” and “Operating leases paid” within the referenced statements.
Quarterly cash dividend: In October 2026, the Company announced that the Board declared a quarterly cash dividend of $0.30 per share. The dividend will be paid on December 16, 2026 to shareholders of record at the close of business on November 18, 2026. The declaration, amount, and payment of any future cash dividends on shares of the Company’s common stock will be at the discretion of the Board.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
An index to our management’s discussion and analysis follows:
Forward-Looking Statements
Overview
Factors Affecting Our Results of Operations
32
Components of Results of Operations
33
Results of Operations
Comparison of September 30, 2026, versus September 30, 2025
37
Comparison of the Three Months Ended September 30, 2026, versus the Three Months Ended September 30, 2025
Comparison of the Nine Months Ended September 30, 2026, versus the Nine Months Ended September 30, 2025
40
Liquidity and Capital Resources
42
Critical Accounting Policies and Estimates
44
The following discussion and analysis should be read in conjunction with, and is qualified in its entirety by reference to, our unaudited consolidated financial statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q. These discussions contain forward-looking statements that reflect our current expectations and that include, but are not limited to, statements concerning our strategies, future operations, future financial position, future revenues, projected costs, expectations regarding demand and acceptance for our financial products, growth opportunities and trends in the market in which we operate, prospects, and plans and objectives of management. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “predicts,” “will,” “would,” “should,” “could,” “potential,” “continue,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements involve risks and uncertainties that could cause actual results, events, and/or performance to differ materially from the plans, intentions, and expectations disclosed in the forward-looking statements. Such risks and uncertainties include, without limitation, the risks set forth in our filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (which was filed with the SEC on February 20, 2026), our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2026 (which was filed with the SEC on May 1, 2026), our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2026 (which was filed with the SEC on July 31, 2026), and this Quarterly Report on Form 10-Q. The forward-looking information we have provided in this Quarterly Report on Form 10-Q pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 should be evaluated in the context of these factors. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update or revise such statements, except as required by the federal securities laws.
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 September 30, 2026, we operate under the name “Regional Finance” online and in 354 branch locations in 20 states across the United States, serving 559,500 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 offer loans directly through our state-licensed operations and, in select states, through our bank partnership program with Column, under which Column is the lender and we act as Column’s service provider and program manager. For loans offered under the bank partnership program, we process applications under a credit policy approved by Column. We source our loans through our omni-channel platform, which includes our branches, centrally-managed direct mail campaigns, digital partners, and our consumer website. We also purchase loans that Column offers for sale pursuant to a purchase agreement with Column, except in limited circumstances. We operate an integrated branch model in which nearly all loans, regardless of origination channel, are serviced through our branch network with the support of centralized sales, underwriting, service, collections, and administrative teams. This model provides us with frequent contact with our customers, which we believe improves our credit performance and customer loyalty. 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:
Our core products are large and small installment loans. 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 business is impacted by several factors affecting our revenues, costs, and results of operations, including the following:
Quarterly Information and Seasonality. Our loan volume and contractual delinquency follow seasonal trends. Demand for our loans is typically highest during the second, third, and fourth quarters, which we believe is largely due to customers borrowing money for vacation, back-to-school, and holiday spending. Loan demand has generally been the lowest during the first quarter, which we believe is largely due to the timing of income tax refunds. Delinquencies generally reach their lowest point in the first half of the year and rise in the second half of the year. Changes in the portfolio could result in releases of the allowance for credit losses in periods of portfolio liquidation and increases to the allowance for credit losses in periods of portfolio growth. Consequently, we experience seasonal fluctuations in our operating results. However, changes in macroeconomic factors, including inflation, higher interest rates, and geopolitical conflict, have impacted our typical seasonal trends for loan volume and delinquency.
Growth in Loan Portfolio. The revenue that we generate from interest and fees is largely driven by the balance of loans that we originate or purchase under our bank partnership program. 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. We grew our state footprint from 19 to 20 states in May 2026, expanding our operations to Florida. We continue to assess our branch network for clear opportunities to add branches in new and existing states where it is favorable for us to conduct business or consolidate operations into larger branches within close geographic proximity. 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.
Product Mix. We are exposed to different credit risks and charge different interest rates and fees with respect to the various types of loans we offer. Our product mix also varies to some extent by state, and we may further diversify our product mix in the future. The interest rates and fees vary from state to state, depending on the competitive environment and relevant laws and regulations.
Asset Quality and Allowance for Credit Losses. Our results of operations are highly dependent upon the credit quality of our loan portfolio. The credit quality of our loan portfolio is the result of our ability to enforce sound underwriting standards, maintain diligent servicing of the portfolio, and respond to changing economic conditions as we grow our loan portfolio. For loans purchased under our bank partnership program, underwriting is performed under a credit policy approved by Column, and we bear the credit risk on those loans after we purchase the loans.
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. We monitor these factors, and the amount and past due status of all loans, to identify trends that might require us to modify the allowance for credit losses.
Interest Rates. Our costs of funds are affected by changes in interest rates, as the interest rates that we pay on certain of our credit facilities are variable. 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 September 30, 2026, representing 74% of our total debt balance.
Operating Costs. Our financial results are impacted by the costs of operations and head office functions. Those costs are included in general and administrative expenses within our consolidated statements of comprehensive income.
Bank Partnership Program. In March 2026, we entered into an agreement with Column, under which Column originates certain unsecured and auto-secured installment loan products offered through our platform and other approved channels. This program is an important enabler of our long-term strategy, providing greater product and operational uniformity across states, faster entry into new markets, expanded relationships with our customers, and attractive unit economics as it scales. We perform marketing, application processing, and servicing activities on Column’s behalf, in accordance with program policies approved by Column and subject to Column’s oversight, audit, and direction. Column may elect to retain loans it originates, which we service on its behalf. We will purchase loans that Column offers for sale under the program, except in limited circumstances.
The bank partnership program impacts the timing and classification of certain revenues and expenses as compared to loans originated under our state-licensed operations. For loans originated under the program, we earn marketing and processing fees from Column that are recognized in other income at the time of origination. In contrast, origination fees associated with loans originated directly by us are generally deferred and recognized in interest and fee income over the life of the loan using the constant yield method. We also receive servicing fee income related to loans retained by Column that are recognized in other income.
In addition, certain personnel and digital affiliate marketing costs that would otherwise be deferred and recognized over the life of a state-licensed originated loan are generally expensed as incurred for loans originated under the bank partnership program within personnel expense and marketing expense, respectively. Other program costs include monthly platform fees and certain ongoing program monitoring expenses that are recorded to other expenses.
As bank partnership loan volumes increase, the program may result in differences in the timing and classification of certain revenues and expenses and change the classification of those amounts within the statement of comprehensive income. Accordingly, growth in bank partnership loan volume may affect the comparability of period-to-period trends in interest and fee income, other income, and general and administrative expenses, as compared to periods prior to the implementation of the program.
Interest and Fee Income. Our interest and fee income consists primarily of interest earned on outstanding loans. Accrual of interest income on finance receivables is suspended when an account becomes 90 days delinquent. If the account is charged off, the accrued interest income is reversed as a reduction of interest and fee income.
Most states allow certain fees in connection with lending activities, such as loan origination fees, acquisition fees, and maintenance fees. Some states allow for higher fees while keeping interest rates lower. 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 or, for loans made under our bank partnership program, that we deliver on Column’s behalf. The fees may or may not be refundable to the customer in the event of an early payoff, depending on state law. Fees associated with loans originated directly by us are recognized as income over the life of the loan on the constant yield method. See the “Factors Affecting Our Results of Operations” above for a discussion of the recognition and classification of fees associated with loans originated under our bank partnership program.
Insurance Income, Net. Our insurance operations are a material part of our overall business and are integral to our lending activities. Insurance income, net consists primarily of earned premiums, net of certain direct costs, from the sale of various optional payment and collateral protection insurance products offered to customers who obtain loans directly from us. Insurance income, net also includes the earned premiums and direct costs associated with the non-file insurance that we purchase to protect us from credit losses where, following an event of default, we are unable to take possession of personal property collateral because our security interest is not perfected. We do not sell insurance to non-borrowers. 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 other income consists of marketing, processing and servicing fee income earned through our bank partnership program, 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.
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. Credit loss experience, current conditions, reasonable and supportable economic forecasts, delinquency of finance receivables, loan portfolio growth, the value of underlying collateral, and management’s judgment are factors used in assessing the overall adequacy of the allowance and the resulting provision for credit losses. Substantial adjustments to the allowance may be necessary if there are significant changes in forecasted economic conditions or loan portfolio performance.
General and Administrative Expenses. Our financial results are impacted by the costs of operations and head office functions. Those costs are included in general and administrative expenses within our consolidated statements of comprehensive income. 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.
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.
Our marketing expenses consist primarily of costs associated with our direct mail campaigns (including postage and costs associated with selecting recipients), digital marketing, maintaining our consumer website, and local marketing by branches. These costs are expensed as incurred.
Other expenses consist primarily of legal, compliance, audit, and consulting costs, as well as software maintenance and support, non-employee director compensation, electronic payment processing costs, bank service charges, office supplies, credit bureau charges, and the amortization of software, software licenses, and implementation costs. We frequently experience fluctuations in other expenses as we grow our loan portfolio and expand our market footprint.
For a discussion regarding how risks and uncertainties associated with the current regulatory environment may impact our future expenses, net income, and overall financial condition, see Part II, Item 1A, “Risk Factors.”
Interest Expense. 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. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The change in deferred tax assets and liabilities is recognized in the period in which the change occurs, and the effects of future tax rate changes are recognized in the period in which the enactment of new rates occurs.
The following table summarizes our results of operations, both in dollars and as a percentage of average net finance receivables (annualized) for the periods indicated:
% ofAverage Net FinanceReceivables
28.7
29.7
28.5
29.4
2.3
2.1
2.4
32.9
33.1
32.1
32.8
12.2
12.1
12.3
7.9
7.4
8.2
0.8
2.7
Total general and administrative
12.6
12.4
13.3
4.4
4.3
3.7
3.8
2.8
2.9
0.7
Information explaining the changes in our results of operations from year-to-year is provided in the following pages.
The following tables summarize the quarterly trends of our financial results for the periods indicated:
Income Statement Quarterly Trend
In thousands, except per share amounts
3Q 25
4Q 25
1Q 26
2Q 26
3Q 26
QoQ $B(W)
YoY $B(W)
153,029
150,296
150,278
5,469
7,075
11,386
11,810
10,976
(249
(664
5,287
5,184
6,752
5,550
6,878
169,702
167,290
168,006
10,770
13,289
66,379
64,868
69,006
2,843
(5,689
40,394
39,342
39,433
(1,113
(1,029
7,227
7,479
7,252
(199
(291
3,874
4,181
4,889
(423
(1,100
13,024
13,662
13,870
(1,448
(2,139
64,519
64,664
65,444
(3,183
(4,559
22,646
22,923
22,993
(1,155
(2,177
16,158
14,835
10,563
9,275
864
3,249
3,434
2,410
(2,315
(107
12,909
11,401
8,153
6,960
757
1.40
1.24
0.91
0.77
0.15
1.30
1.18
0.85
0.76
0.19
Weighted-average shares outstanding:
9,233
9,163
8,988
9,941
9,662
9,604
242
771
Balance Sheet & Other Key Metrics Quarterly Trends
QoQ $Inc (Dec)
YoY $Inc (Dec)
2,028,266
2,072,750
2,129,594
80,845
182,173
2,104,001
2,148,253
61,672
156,908
219,500
6,800
18,800
1,581,992
1,621,398
1,675,942
74,049
167,999
29.3
28.3
28.4
(1.0
)%
38.7
38.0
39.0
38.4
(0.6
(0.3
(0.2
10.2
11.0
10.9
(1.3
Book value per share
37.94
39.05
40.25
40.51
41.51
1.00
3.57
36
The following discussion and table describe the changes in finance receivables by product type for the periods indicated:
YoY $ Inc (Dec)
YoY % Inc (Dec)
229,873
15.2
(72,965
(13.5
Number of branches
354
349
Net finance receivables per branch
6,243
5,883
360
6.1
Net Income. Net income increased $0.8 million, or 5.3%, to $15.1 million during the three months ended September 30, 2026, from $14.4 million during the prior-year period. The change in net income is explained in greater detail below.
Revenue. Total revenue increased $13.3 million, or 8.0%, to $178.8 million during the three months ended September 30, 2026, from $165.5 million during the prior-year period. The components of revenue are explained in greater detail below.
Interest and Fee Income. Interest and fee income increased $7.1 million, or 4.8%, to $155.7 million during the three months ended September 30, 2026, from $148.7 million during the prior-year period. The increase was primarily due to an 8.5% increase in average net finance receivables, partially offset by a 1.0% decrease in interest and fee yield. The decrease in yield was primarily due to the continued mix shift toward larger loans and auto-secured products, which carry lower yields and lower loss rates, as well as pricing changes and credit performance.
The following table sets forth the average net finance receivables balance and interest and fee yield for our loan products for the periods indicated:
YoY %Inc (Dec)
YoYInc (Dec)
1,697,088
1,460,187
16.2
27.0
27.1
(0.1
473,659
541,201
(12.5
34.7
36.7
(2.0
2,170,747
2,001,388
8.5
Total originations increased to $530.3 million during the three months ended September 30, 2026, from $522.3 million during the prior-year period. Large loan originations increased $42.9 million, or 11.8%, driven by growth in our auto-secured loan portfolio, new branches opened during 2025 and 2026, and the transition of small loan customers to large loans. The increase was partially offset by a $34.9 million, or 21.9%, decrease in small loan originations driven by tightened underwriting in higher-risk business. The following table represents the principal balance of loans originated, refinanced, and purchased for the periods indicated:
405,935
363,055
42,880
124,316
159,210
(34,894
(21.9
530,251
522,265
7,986
The following table summarizes the components of the increase in interest and fee income when comparing the three months ended September 30, 2026 and 2025:
Increase (Decrease)
Volume
Rate
Volume &Rate
Net
16,057
(297
15,711
(6,203
(2,780
347
(8,636
Product mix
2,727
(1,999
(728
12,581
(5,076
(430
Insurance Income, Net. Insurance income, net decreased $0.7 million, or 5.8%, to $10.7 million during the three months ended September 30, 2026, from $11.4 million during the prior-year period. During both the three months ended September 30, 2026 and 2025, 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 following table summarizes the components of insurance income, net for the periods indicated:
YoY %B(W)
Earned premiums
14,071
14,907
(836
(5.6
Claims, reserves, and certain direct expenses
(3,344
(3,516
4.9
(5.8
Earned premiums decreased by $0.8 million, and claims, reserves, and certain direct expenses decreased by $0.2 million, in each case compared to the prior-year period. The decrease in earned premiums was primarily attributable to growth in bank partnership loans, for which certain insurance products are not offered.
Other Income. Other income increased $6.9 million, or 126.8%, to $12.3 million during the three months ended September 30, 2026, from $5.4 million during the prior-year period, primarily due to marketing, processing, and servicing fee income earned through our bank partnership program of $6.7 million and an increase in sales of our club membership products of $0.3 million.
Provision for Credit Losses. Our provision for credit losses increased $5.7 million, or 9.4%, to $66.2 million during the three months ended September 30, 2026, from $60.5 million during the prior-year period. The increase was due to an increase in net credit losses of $8.1 million, partially offset by a $2.4 million lower build in the allowance for credit losses, in each case compared to the prior-year period. The increase 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. During the three months ended September 30, 2026 and 2025, the allowance for credit losses included builds of $6.8 million and $9.2 million, respectively. The lower build in the allowance year-over-year was primarily driven by lower portfolio growth, partially offset by changes in estimated future macroeconomic impacts on credit losses. The allowance for credit losses as a percentage of net finance receivables increased to 10.4% as of September 30, 2026, from 10.3% as of September 30, 2025, primarily due to changes in estimated future macroeconomic impacts on credit losses.
Net Credit Losses. Net credit losses increased $8.1 million, or 15.8%, to $59.4 million during the three months ended September 30, 2026, from $51.3 million during the prior-year period. The net credit loss rate was 10.9% during the three months ended September 30, 2026, compared to 10.2% during the prior-year period. The increase in the net credit loss rate was attributable to loans originated in 2025 within higher-risk segments (for which underwriting standards have since been tightened) and the impact of slower portfolio growth during the nine months ended September 30, 2026, compared to the same period in 2025.
Delinquency Performance. Our delinquency rate increased to 7.5% as of September 30, 2026, from 7.0% as of the prior-year period. The increase included the impacts from the performance of higher-risk segments that we have since tightened and slower portfolio growth during the nine months ended September 30, 2026, compared to the same period in 2025.
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The following tables include delinquency balances by aging category and by product for the periods indicated:
Contractual Delinquency by Aging
1,740,356
84.8
168,380
40,100
31,914
1.6
26,304
23,722
22,241
144,281
Contractual Delinquency by Product
85,865
5.7
58,416
10.8
General and Administrative Expenses. Our general and administrative expenses increased $4.6 million, or 7.1%, to $68.6 million during the three months ended September 30, 2026, from $64.1 million during the prior-year period. The increase in general and administrative expenses is explained in greater detail below.
Personnel. The largest component of general and administrative expenses was personnel expense, which increased $1.0 million, or 2.6%, to $40.5 million during the three months ended September 30, 2026, from $39.5 million during the prior-year period. The increase was primarily driven by a reduction in capitalized loan origination costs of $2.2 million, which was inclusive of a $1.7 million reduction associated with labor costs for the bank partnership program that are expensed as incurred rather than deferred (as described above in “Factors Affecting Our Results of Operations”), increased labor costs of $1.0 million to support growth, and increased recruiter fees of $0.2 million. The increase was partially offset by lower incentive compensation of $1.6 million, lower severance expense of $0.5 million, and lower executive costs of $0.3 million.
Occupancy. Occupancy expenses increased $0.3 million, or 4.1%, to $7.5 million during the three months ended September 30, 2026, from $7.2 million during the prior-year period, primarily due to expenses associated with opening 14 new branches since the prior-year period.
Marketing. Marketing expenses increased $1.1 million, or 26.1%, to $5.3 million during the three months ended September 30, 2026, from $4.2 million during the prior-year period. The increase was primarily due to higher digital marketing costs of $0.7 million, $0.5 million of which were digital marketing costs associated with the bank partnership program that are expensed as incurred rather than deferred (as described above in “Factors Affecting Our Results of Operations”), and an increase in direct mail activity of $0.4 million to support growth.
Other Expenses. Other expenses increased $2.1 million, or 16.2%, to $15.3 million during the three months ended September 30, 2026, from $13.2 million during the prior-year period. Other expenses increased $1.4 million due to deployment of digital and technological capabilities, including our new front-end branch origination platform, and $0.3 million due to higher credit bureau fees. In addition, 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 12.6% during the three months ended September 30, 2026, from 12.8% during the prior-year period, as we have grown our loan portfolio and controlled expense growth. The current-period ratio was inclusive of a 40 basis point increase related to bank partnership origination costs that are expensed as incurred rather than deferred (as described above in “Factors Affecting Our Results of Operations”).
Interest Expense. Interest expense increased $2.2 million, or 9.9%, to $24.1 million during the three months ended September 30, 2026, from $22.0 million during the prior-year period primarily due to an increase in the average balance of our debt
39
facilities. The average balance of our debt facilities increased to $1.7 billion during the three months ended September 30, 2026, from $1.5 billion during the prior-year period. Our cost of funds remained consistent at 4.4% during the three months ended September 30, 2026 and 2025.
Income Taxes. Income taxes increased $0.1 million, or 2.3%, to $4.7 million during the three months ended September 30, 2026, from $4.6 million during the prior-year period. The increase was primarily due to a $0.9 million increase in income before income taxes compared to the prior-year period. Our effective tax rates were 23.8% and 24.3% for the three months ended September 30, 2026 and 2025, respectively.
Net Income. Net income increased $3.2 million, or 10.0%, to $34.7 million during the nine months ended September 30, 2026, from $31.5 million during the prior-year period. The change in net income is explained in greater detail below.
Revenue. Total revenue increased $38.2 million, or 8.0%, to $514.1 million during the nine months ended September 30, 2026, from $475.9 million during the prior-year period. The components of revenue are explained in greater detail below.
Interest and Fee Income. Interest and fee income increased $30.4 million, or 7.1%, to $456.3 million during the nine months ended September 30, 2026, from $425.9 million during the prior-year period, primarily due to a 10.4% increase in average net finance receivables. The increase was partially offset by a 0.9% decrease in interest and fee yield. The decrease in yield was primarily due to the continued mix shift toward larger loans and auto-secured products, which carry lower yields and lower loss rates, as well as pricing changes and credit performance.
1,637,139
1,391,470
17.7
26.7
26.6
499,586
543,402
(8.1
34.4
36.4
2,136,725
1,934,872
(0.9
Total originations remained consistent at $1.4 billion during both the nine months ended September 30, 2026 and the prior-year period. The following table represents the principal balance of loans originated, refinanced, and purchased for the periods indicated:
1,042,714
941,337
101,377
379,125
483,377
(104,252
(21.6
1,421,839
1,424,714
(2,875
The following table summarizes the components of the increase in interest and fee income when comparing the nine months ended September 30, 2026 and 2025:
49,041
384
67
49,492
(11,946
(7,772
627
(19,091
7,339
(5,319
(2,020
44,434
(12,707
(1,326
30,401
Insurance Income, Net. Insurance income, net decreased $0.7 million, or 2.0%, to $33.5 million during the nine months ended September 30, 2026, from $34.2 million during the prior-year period. During both the nine months ended September 30, 2026 and 2025, personal property insurance premiums represented the largest component of aggregate earned insurance premiums. During both the nine months ended September 30, 2026 and 2025, life insurance claims expense represented the largest component of direct insurance expenses.
43,420
43,548
(128
(9,907
(9,361
(546
(674
Earned premiums decreased by $0.1 million, and claims, reserves, and certain direct expenses increased by $0.5 million, in each case compared to the prior-year period. The decrease in earned premiums was primarily attributable to growth in bank partnership loans, for which certain insurance products are not offered. Claims, reserves, and direct expenses increased primarily due to a prior-year release in personal property insurance reserves related to previous hurricane activity.
Other Income. Other income increased $8.4 million, or 53.5%, to $24.2 million during the nine months ended September 30, 2026, from $15.8 million during the prior-year period, primarily due to marketing, processing, and servicing fee income earned through our bank partnership program of $8.5 million.
Provision for Credit Losses. Our provision for credit losses increased $21.0 million, or 11.7%, to $200.0 million during the nine months ended September 30, 2026, from $179.1 million during the prior-year period. The increase was due to an increase in net credit losses of $23.6 million, partially offset by the change in the allowance for credit losses of $2.6 million, in each case compared to the prior-year period. The increase 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. During the nine months ended September 30, 2026 and 2025, the allowance for credit losses included builds of $9.9 million and $12.5 million, respectively. The allowance for credit losses as a percentage of net finance receivables increased to 10.4% as of September 30, 2026, from 10.3% as of September 30, 2025, primarily due to changes in estimated future macroeconomic impacts on credit losses.
Net Credit Losses. Net credit losses increased $23.6 million, or 14.2%, to $190.1 million during the nine months ended September 30, 2026, from $166.6 million during the prior-year period. The net credit loss rate was 11.9% during the nine months ended September 30, 2026, compared to 11.5% during the prior-year period. The increase in the net credit loss rate was attributable to loans originated in 2025 within higher-risk segments (for which underwriting standards have since been tightened) and the impact of slower portfolio growth during the nine months ended September 30, 2026, compared to the same period in 2025.
General and Administrative Expenses. Our general and administrative expenses increased $5.7 million, or 2.9%, to $198.7 million during the nine months ended September 30, 2026, from $193.1 million during the prior-year period. The increase in general and administrative expenses is explained in greater detail below.
Personnel. The largest component of general and administrative expenses was personnel expense, which increased $0.1 million, or 0.1%, to $119.3 million during the nine months ended September 30, 2026, from $119.2 million during the prior-year period. The increase was driven by higher labor costs of $2.4 million to support growth, a reduction in capitalized loan origination costs of $1.8 million, which was inclusive of a $2.2 million reduction associated with labor costs for the bank partnership program that are expensed as incurred rather than deferred (as described above in “Factors Affecting Our Results of Operations”), and higher recruiter fees of $0.4 million. The increase was partially offset by lower incentive compensation of $3.0 million, lower executive transition costs of $1.1 million, and lower severance expense of $0.5 million.
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Occupancy. Occupancy expenses increased $1.2 million, or 5.7%, to $22.2 million during the nine months ended September 30, 2026, from $21.0 million during the prior-year period, primarily due to expenses associated with opening 14 new branches since the prior-year period.
Marketing. Marketing expenses decreased $0.3 million, or 2.0%, to $14.4 million during the nine months ended September 30, 2026, from $14.7 million during the prior-year period. The decrease was primarily due to optimization of our framework for direct mail marketing of $1.3 million, partially offset by higher digital marketing costs of $1.0 million, $0.6 million of which were associated with the bank partnership program that are expensed as incurred rather than deferred (as described above in “Factors Affecting Our Results of Operations”).
Other Expenses. Other expenses increased $4.7 million, or 12.3%, to $42.9 million during the nine months ended September 30, 2026, from $38.2 million during the prior-year period. Other expenses increased $3.1 million due to deployment of digital and technological capabilities, including our new front-end branch origination platform, $0.7 million due to higher credit bureau fees, and $0.5 million due to bank partnership fees. In addition, 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 12.4% during the nine months ended September 30, 2026, from 13.3% during the prior-year period, as we have grown our loan portfolio and controlled expense growth. The current-period ratio was inclusive of a 20 basis point increase related to bank partnership origination costs that are expensed as incurred rather than deferred (as described above in “Factors Affecting Our Results of Operations”).
Interest Expense. Interest expense increased $7.9 million, or 12.7%, to $70.1 million during the nine months ended September 30, 2026, from $62.2 million during the prior-year period primarily due to an increase in the average balance of our debt facilities. The average balance of our debt facilities increased to $1.7 billion during the nine months ended September 30, 2026, from $1.5 billion during the prior-year period. Our cost of funds increased 0.1% to 4.4% during the nine months ended September 30, 2026, from 4.3% during the prior-year period.
Income Taxes. Income taxes increased $0.5 million, or 4.5%, to $10.6 million during the nine months ended September 30, 2026, from $10.1 million during the prior-year period. The increase was primarily due to a $3.6 million increase in income before income taxes compared to the prior-year period. Our effective tax rates were 23.4% and 24.3% for the nine months ended September 30, 2026 and 2025, respectively.
Our primary cash needs relate to the funding of our lending activities, including the purchase of loans from Column under our bank partnership program, and, to a lesser extent, expenditures relating to improving our technology infrastructure and expanding and maintaining our branch locations. We have historically financed, and plan to continue to finance, our short-term and long-term operating liquidity and capital needs through a combination of cash flows from operations and borrowings under our debt facilities, including our senior revolving credit facility, revolving warehouse credit facilities, and asset-backed securitization transactions, all of which are described below. We continue to seek ways to diversify our funding sources. As of September 30, 2026, our funded debt-to-equity ratio was 4.6 to 1.0 and our stockholders’ equity ratio was 17.3%, compared to 4.4 to 1.0 and 17.7%, respectively, as of December 31, 2025.
Cash increased to $7.6 million as of September 30, 2026, from $3.8 million as of December 31, 2025. We had immediate availability to draw down cash from our revolving credit facilities of $96.4 million and $145.3 million as of September 30, 2026 and December 31, 2025, respectively. Our unused capacity on our revolving credit facilities (subject to the borrowing base) was $323.8 million and $511.4 million as of September 30, 2026 and December 31, 2025, respectively. Our debt balance was $1.7 billion as of both September 30, 2026 and December 31, 2025.
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.
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. As of September 30, 2026, the revolving period maturities of our revolving credit facilities and securitizations (each as described below within “Financing Arrangements and Restricted Cash Reserve Accounts”) ranged from November 2026 to August 2028, with the exception of the RMIT 2022-1, RMIT 2021-2, and RMIT 2021-3 securitizations, for which the revolving periods ended in February 2025, July 2026, and September 2026, respectively. We had not exercised our right to redeem
the notes of any of these securitizations as of September 30, 2026. 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 Board may in its discretion declare and pay cash dividends on our common stock. The following table sets forth the quarterly dividends declared and paid for the nine months ended September 30, 2026:
Period
Declaration Date
Record Date
Payment Date
Dividends Declared Per Common Share
Dividends Paid(in thousands)
February 4, 2026
February 19, 2026
March 12, 2026
3,419
April 29, 2026
May 20, 2026
June 10, 2026
2,721
July 29, 2026
August 19, 2026
September 16, 2026
2,638
Totals
8,778
While we intend to pay our quarterly dividend for the foreseeable future, all subsequent dividends will be reviewed and declared at the discretion of the Board and will depend on many factors, including our financial condition, earnings, cash flows, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends, and other considerations that the Board deems relevant. Our dividend payments may change from time to time, and the Board may choose not to continue to declare dividends in the future.
See Note 14, “Subsequent Events” of the Notes to Consolidated Financial Statements in Part I, Item 1, “Financial Statements,” for information regarding our cash dividend following the end of the fiscal quarter.
In December 2024, we announced that the Board had authorized a $30.0 million stock repurchase program. The authorization was effective immediately and extended through December 31, 2026. In November 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. As of September 30, 2026, we had repurchased 1.4 million shares of common stock at a total cost of $50.4 million, including commissions and excise taxes, over the life of the program.
Cash Flow.
Operating Activities. Net cash provided by operating activities during the nine months ended September 30, 2026 was $244.3 million, compared to $229.0 million during the prior-year period, a net increase of $15.3 million. The increase in net cash provided was primarily due to the year-over-year 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. Net cash used in investing activities during the nine months ended September 30, 2026 was $265.5 million, compared to $328.0 million during the prior-year period, a net decrease in cash used of $62.5 million. The decrease in net cash used was primarily due to higher repayments of finance receivables.
Financing Activities. Financing activities consist of borrowings and payments on our outstanding indebtedness. Net cash provided by financing activities during the nine months ended September 30, 2026 was $64.1 million, compared to $71.9 million during the prior-year period, a net decrease of $7.8 million. The decrease in net cash provided was primarily due to an increase in the repurchases of common stock and a decrease in the net advances on debt instruments.
Financing Arrangements and Restricted Cash Reserve Accounts.
As of September 30, 2026, 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. 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 flows from the underlying collateralized finance receivables. Collections on these finance receivables are remitted to restricted cash collection accounts, which totaled $111.8 million and $81.8 million as of September 30, 2026 and December 31, 2025, respectively. Our debt arrangements also contain various debt covenants. We were in compliance with all such debt covenants as of September 30, 2026.
Revolving Credit Facilities. The following is a summary of our revolving credit facilities as of September 30, 2026:
Capacity
Restricted Cash Collection
4,512
5,658
5,099
4,926
Securitizations. The following is a summary of our securitizations as of September 30, 2026:
15,210
15,691
4,738
11,642
14,666
15,393
14,253
RMC Reinsurance. 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 September 30, 2026, the reserves totaled $24.6 million.
Management’s discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP and conform to general practices within the consumer finance industry. The preparation of these financial statements requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities for the periods indicated in the financial statements. Management bases estimates on historical experience and other assumptions it believes to be reasonable under the circumstances and evaluates these estimates on an ongoing basis. Actual results may differ from these estimates under different assumptions or conditions.
Allowance for Credit Losses.
The allowance for credit losses is based on historical credit experience, current conditions, and reasonable and supportable economic forecasts. The historical loss experience is adjusted for quantitative and qualitative factors that are not fully reflected in the historical data. In determining our estimate of expected credit losses, we evaluate information related to credit metrics, changes in our lending strategies and underwriting practices, and the current and forecasted direction of the economic and business environment. These metrics include, but are not limited to, loan portfolio mix and growth, unemployment, credit loss trends, delinquency trends, changes in underwriting, and operational risks.
We selected a PD / LGD model to estimate our base allowance for credit losses, in which the estimated loss is equal to the product of PD and LGD. Historical net finance receivables are tracked over the term of the pools to identify the incidences of loss (PDs) and the average severity of losses (LGDs).
To enhance the precision of the allowance for credit loss estimate, we evaluate our finance receivable portfolio on a pool basis and segment each pool of finance receivables with similar credit risk characteristics. 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 finance receivables are originated or purchased, 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). Subsequent changes to the contractual terms that are a result of re-underwriting are not
included in the finance receivable’s contractual life (considering the effect of prepayments). We use our segmentation loss experience to forecast expected credit losses. Historical information about losses generally provides a basis for the estimate of expected credit losses. We also consider the need to adjust historical information to reflect the extent to which current conditions differ from the conditions that existed for the period over which historical information was evaluated. These adjustments to historical loss information may be qualitative or quantitative in nature.
Macroeconomic forecasts are required for our allowance for credit loss model and require significant judgment and estimation uncertainty. We consider key economic factors, most notably unemployment rates, to incorporate into our estimate of the allowance for credit losses. We engaged a major rating service provider to assist with compiling a reasonable and supportable forecast which we use to support the adjustments of our historical loss experience.
Due to the judgment and uncertainty in estimating the expected credit losses, we may experience changes to the macroeconomic assumptions within our forecast, as well as changes to our credit loss performance outlook, both of which could lead to further changes in our allowance for credit losses, allowance as a percentage of net finance receivables, and provision for credit losses. Potential macroeconomic changes have created conditions that increase the level of uncertainty associated with our estimate of the amount and timing of future credit losses from our loan portfolio.
Macroeconomic Sensitivity. To demonstrate the sensitivity of forecasting macroeconomic conditions, we stressed our macroeconomic model with a 10% increased weighting toward slower near-term growth that would have increased our reserves as of September 30, 2026 by $1.7 million.
The macroeconomic scenarios are highly influenced by timing, severity, and duration of changes in the underlying economic factors. This makes it difficult to estimate how potential changes in economic factors affect the estimated credit losses. 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.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect our results of operations and financial condition. We originate finance receivables either at prevailing market rates or at statutory limits, and we purchase finance receivables under our bank partnership program that bear interest at rates set under program terms approved by Column. Our finance receivables are structured on a fixed-rate, fixed-term basis. Accordingly, subject to statutory limits and program terms, our ability to react to changes in prevailing market rates is dependent upon the speed at which our customers pay off or renew loans in our existing loan portfolio, which allows us to originate or purchase new loans at prevailing market rates. Because our large loans have longer maturities than our small loans and typically renew at a slower rate than our small loans, our reaction time to changes may be affected as our large loans change as a percentage of our portfolio.
We also are exposed to changes in interest rates as a result of certain borrowing activities. As of September 30, 2026, the interest rates on 74% of our debt (the securitizations) 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 September 30, 2026, 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
Monthly
Based on the underlying rates and the outstanding balances as of September 30, 2026, an increase of 100 basis points in the rates of our revolving credit facilities would result in approximately $4.6 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.
ITEM 4. CONTROLS AND PROCEDURES.
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2026. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Based on the evaluation of our disclosure controls and procedures as of September 30, 2026, our chief executive officer and chief financial officer concluded that, as of such date, our disclosure controls and procedures were effective. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost–benefit relationship of possible controls and procedures.
Changes in Internal Control
There were no changes in our internal control over financial reporting identified in management’s evaluation pursuant to Rules 13a-15(d) or 15d-15(d) of the Exchange Act during the period covered by this Quarterly Report on Form 10-Q that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Part II – Other information
ITEM 1.LEGAL PROCEEDINGS.
The Company is involved in various legal proceedings and related actions that have arisen in the ordinary course of its business that have not been fully adjudicated. The Company’s management does not believe that these matters, when ultimately concluded and determined, will have a material adverse effect on its financial condition, liquidity, or results of operations.
ITEM 1A. RISK FACTORS.
There have been no material changes to our risk factors from those included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, other than the risk factor set forth in Part II, Item 1A, “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. In addition to the other information set forth in this report and in our other reports and statements that we file with the SEC, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (which was filed with the SEC on February 20, 2026), which could materially affect our business, financial condition, and/or future operating results. The risks described in our Annual Report on Form 10-K are not the only risks facing our company. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial also may materially and adversely affect the Company’s business, financial condition, and/or operating results.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
The following table provides information regarding our share repurchase transactions (excluding both commissions and excise taxes) during the three months ended September 30, 2026:
Issuer Purchases of Equity Securities
Total Number of Shares Purchased
Weighted-AveragePrice Paid per Share
Total Number of SharesPurchased as Part ofPublicly AnnouncedProgram
Approximate Dollar Value of Shares thatMay Yet Be PurchasedUnder the Program (1)
July 1, 2026 — July 31, 2026
118,468
42.21
15,000,045
August 1, 2026 — August 31, 2026
147,177
33.97
10,000,027
September 1, 2026 — September 30, 2026
265,645
37.64
(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. 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.
ITEM 5. OTHER INFORMATION.
On August 3, 2026, Sandra Johnson, Ph.D., a member of the Board, adopted a Rule 10b5-1 trading arrangement. The Rule 10b5-1 trading arrangement, which terminates pursuant to its terms on February 2, 2027, provides for the potential sale of up to 8,100 shares of the Company’s common stock.
Except as set forth above, during the three months ended September 30, 2026, none of the Company’s officers or directors adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as such terms are defined in Item 408(a) of Regulation S-K.
ITEM 6. EXHIBITS.
Incorporated by Reference
Exhibit
Number
Exhibit Description
Filed
Herewith
Form
File
Filing Date
31.1
Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Executive Officer
X
31.2
Rule 13a-14(a) / 15(d)-14(a) Certification of Principal Financial Officer
Section 1350 Certifications
101.INS
XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104
Cover Page Interactive Data File—the cover page XBRL tags are embedded within the Inline XBRL document contained in Exhibit 101
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
REGIONAL MANAGEMENT CORP.
Date: October 30, 2026
By:
/s/ Harpreet Rana
Harpreet Rana, Executive Vice President and Chief Financial and Administrative Officer
(Principal Financial Officer and Duly Authorized Officer)
50