Regional Management Corp. delivered robust fourth quarter results, reporting net income of $12.9 million, a 30.2% increase year-over-year, and diluted EPS of $1.30, up 32.7%. For the full year, the company generated net income of $44.4 million, reflecting disciplined expense management and solid revenue growth. Record quarterly revenue reached $169.7 million, up 9.6% from the prior year, driven primarily by the expansion of the loan portfolio and higher asset yields despite a 90-basis-point decline in total revenue yield due to a shift toward lower-rate products.

Net finance receivables rose to a record $2.1 billion, a 13.1% increase versus the prior year, fueled by digital origination channels, demand for auto-secured loans and 17 new branch openings during 2025. Large-loan receivables grew by 19.2% to $1.6 billion, representing 74.4% of the total portfolio, while auto-secured receivables expanded 42.4% to $294.3 million, now 13.7% of the book. Small-loan receivables declined slightly by 1.6% to $547.0 million. The share of receivables with APRs above 36% moderated to 17.9% of the portfolio from 18.5% a year earlier.

The provision for credit losses increased 15.2% to $66.4 million, reflecting portfolio growth and a sequential reserve build of $8.9 million. The annualized net credit loss rate held near prior-year levels at 11.0%, adjusting for last year’s disaster deferrals. The allowance for credit losses stood at $220.9 million or 10.3% of receivables, stable sequentially and improved versus 10.5% a year ago. Thirty-plus day delinquencies were 7.5% of receivables, a 20-basis-point improvement from the prior year, despite seasonal upticks. General and administrative expenses were flat at $64.5 million, yielding an all-time best operating expense ratio of 12.4%, down 160 basis points year-over-year.

Regional Management repurchased nearly 197,000 shares in the quarter at an average price of $38.07, reflecting capital return discipline. The board declared a $0.30 per share dividend for Q1 2026, payable March 12 to holders of record on February 19. As of December 31, 2025, total debt was $1.7 billion against $2.1 billion of receivables, comprised largely of asset-backed securitizations and revolving credit facilities with 84% fixed-rate debt at a 4.7% average coupon. Unused revolver capacity was $511 million and available liquidity totaled $149.2 million. The funded debt-to-equity ratio was 4.4x, with tangible equity leverage at 4.8x on a non-GAAP basis.