8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 8, 2018

Regional Management Corp.

(Exact name of registrant as specified in its charter)

Delaware	001-35477	57-0847115
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS 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)

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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.  ☐

Item 2.02. Results of Operations and Financial Condition.

On November 8, 2018, Regional Management Corp. (the “Company”) issued a press release announcing financial results for the three and nine months ended September 30, 2018. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. On November 8, 2018, the Company will host a conference call to discuss financial results for the three and nine months ended September 30, 2018. A copy of the presentation to be used during the conference call is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

All information in the press release and the presentation is furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition,” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release issued by Regional Management Corp. on November 8, 2018, announcing financial results for Regional Management Corp. for the three and nine months ended September 30, 2018.
99.2	Presentation of Regional Management Corp., dated November 8, 2018.

SIGNATURES

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 hereunto duly authorized.

	Regional Management Corp.
Date: November 8, 2018	By:	/s/ Donald E. Thomas
		Donald E. Thomas
		Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

Regional Management Corp. Announces Third Quarter 2018 Results

- Net income of $7.4 million and diluted earnings per share of $0.61 -

- Non-GAAP net income of $10.3 million and non-GAAP diluted earnings per share of $0.85 excluding hurricane impact -

Greenville, South Carolina – November 8, 2018 – Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the third quarter ended September 30, 2018.

Third Quarter 2018 Highlights

• Net income for the third quarter of 2018 was $7.4 million, an increase of 40.3% from the prior-year period, while non-GAAP net income was $10.3 million, an increase of 50.8% from the prior-year period. Non-GAAP net income for the third quarter of 2018 excludes an estimated $2.9 million of impact related to Hurricane Florence, while non-GAAP net income for the prior-year period excludes an estimated $2.2 million of impact related to the 2017 hurricanes and $0.6 million of proceeds related to the bulk sale of the Company’s previously charged-off bankrupt accounts (“bulk sale”). Diluted earnings per share for the third quarter of 2018 was $0.61, while non-GAAP diluted earnings per share for the third quarter of 2018 was $0.85.

• Total finance receivables as of September 30, 2018 were $888.1 million, an increase of 14.6%, or $113.2 million, from the prior-year period.

• Fourteenth consecutive quarter of year-over-year double-digit finance receivables growth.

• Total core small and large loan finance receivables increased $153.3 million, or 22.8%, compared to the prior-year period.

• Large loan finance receivables of $410.8 million increased $102.2 million, or 33.1%, from the prior-year period and represented 46.3% of the total loan portfolio. Small loan finance receivables as of September 30, 2018 were $414.4 million, an increase of 14.1% over the prior-year period.

1

• Total revenue for the third quarter of 2018 was $77.9 million, an $8.7 million, or 12.6%, increase from the prior-year period.

• Ninth consecutive quarter of year-over-year double-digit revenue growth.

• Interest and fee income increased 13.4%, driven by a 14.6% increase in finance receivables compared to the prior-year period.

• Provision for credit losses for the third quarter of 2018 was $23.6 million, an increase of 17.3% from the prior-year period. The provision for credit losses for the third quarter of 2018 included $3.9 million of incremental hurricane allowance, while the provision for credit losses for the third quarter of 2017 included $3.0 million of incremental hurricane allowance and a $1.0 million benefit resulting from the bulk sale.

• Annualized net credit losses as a percentage of finance receivables were 7.7%, a 10 basis point improvement from 7.8% in the prior-year period.

• 30+ day contractual delinquencies as of September 30, 2018 were 7.1%, compared to 6.3% as of June 30, 2018 and 6.8% as of September 30, 2017.

• Expanded operations into Missouri, the Company’s tenth U.S. state, during the quarter.

“We had a very strong third quarter and our performance drivers continue to be robust,” said Peter R. Knitzer, President and Chief Executive Officer of Regional Management. “We generated another quarter of year-over-year double-digit growth on our top and bottom lines as well as in our finance receivables. Credit performance remains stable, with the slight uptick in September 30 delinquencies on a year-over-year basis returning to year-ago levels as of the end of October.”

“In addition to another quarter of strong growth and stable credit, we continued to keep a firm control on our overall expenses, which should lead to additional margin expansion over time,” continued Mr. Knitzer. “We also began implementing custom scorecards in our branches, which we believe will further improve our credit profile in the mid- to long-term. Moving forward, we remain squarely focused on our hybrid growth strategy of increasing our receivables per branch within our existing network, coupled with de novo expansion in the Midwest. Overall, we remain well-positioned to generate long-term shareholder value.”

Third Quarter 2018 Results

Finance receivables outstanding at September 30, 2018 were $888.1 million, a 14.6% increase from $774.9 million in the prior year. Finance receivables increased from continued strong growth in both the core small and large loan portfolios.

For the third quarter ended September 30, 2018, the Company reported total revenue of $77.9 million, a 12.6% increase from $69.2 million in the prior-year period. Interest and fee income for the third quarter of 2018 was $72.1 million, a 13.4% increase from $63.6 million in the prior-year period, primarily due to increases in the small and large loan portfolios compared to the prior-year period.

2

The provision for credit losses in the third quarter of 2018 was $23.6 million, a 17.3% increase compared to $20.2 million in the prior-year period. The provision for credit losses for the third quarter of 2018 included $3.9 million of incremental hurricane allowance, while the provision for credit losses for the third quarter of 2017 included $3.0 million of incremental hurricane allowance and a $1.0 million benefit resulting from the bulk sale.

Net credit losses were $16.8 million in the third quarter of 2018, an increase of $2.0 million over the prior-year period. The increase over the prior-year period was primarily due to portfolio growth. Annualized net credit losses as a percentage of average finance receivables in the third quarter of 2018 were 7.7%, a 10 basis point improvement from 7.8% in the prior-year period.

General and administrative expenses for the third quarter of 2018 were $35.9 million, an increase of $2.0 million, or 6.0%, from the prior-year period. Annualized general and administrative expenses as a percentage of average finance receivables improved 150 basis points from the prior-year period to 16.5% for the third quarter of 2018. General and administrative expenses for the third quarter of 2018 included higher personnel costs related to staffing increases in information technology, centralized collections, and branches to support ongoing loan portfolio growth.

Interest expense was $8.7 million in the third quarter of 2018, compared to $6.7 million in the prior-year period. The increase in interest expense was due to larger long-term debt amounts outstanding from growth in finance receivables, federal funds rate increases, larger unused lines of credit, incremental debt issuance costs associated with upsizing the senior revolving credit facility and entering into the warehouse credit facility, and the Company’s recently completed asset-based securitization. The Company’s diversified sources of funding continue to position it for long-term growth.

Net income for the third quarter of 2018 was $7.4 million, an increase from $5.3 million in the prior-year period. Excluding the aforementioned non-operating items, non-GAAP net income for the third quarter of 2018 was $10.3 million, up from non-GAAP net income of $6.9 million for the prior-year period. Diluted earnings per share for the third quarter of 2018 was $0.61, an increase from $0.45 in the prior-year period. Non-GAAP diluted earnings per share for the third quarter of 2018 was $0.85, an increase from $0.58 in the prior-year period. For a reconciliation of non-GAAP financial measures to the comparable GAAP financial measure, please refer to the reconciliation table accompanying this release.

2018 De Novo Outlook

As of September 30, 2018, the Company’s branch network consisted of 346 locations. The Company opened six branches during the third quarter of 2018. For the fourth quarter 2018, the Company now plans to open an additional 15 to 18 de novo branches. Therefore, total branch openings in 2018 are now expected to be between 22 and 25, with the timing of the remaining branches that were initially expected to open in the fourth quarter now shifted to the first quarter of 2019.

3

Liquidity and Capital Resources

As of September 30, 2018, the Company had finance receivables of $888.1 million and outstanding long-term debt of $611.6 million (consisting of $352.7 million of long-term debt on its $638.0 million senior revolving credit facility, $82.0 million of long-term debt on its $125.0 million revolving warehouse credit facility, $26.7 million of long-term debt on its amortizing loan, and $150.2 million through its asset-backed securitization). The Company had a debt-to-equity ratio of 2.3 to 1.0 and a shareholder equity ratio of 29.9% as of September 30, 2018.

Conference Call Information

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

The dial-in number for the conference call is (855) 327-6838 (toll-free) or (604) 235-2082 (direct). Please dial the number 10 minutes prior to the scheduled start time.

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

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

A replay will be available following the end of the call through Thursday, November 15, 2018, by telephone at (844) 512-2921 (toll-free) or (412) 317-6671 (international), passcode 10005748. A webcast replay of the call will be available at http://www.RegionalManagement.com for one year following the call.

Forward-Looking Statements

This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Regional Management Corp.’s expectations or beliefs concerning future events. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “outlook,” and similar expressions may be used to identify these forward-looking statements. Such forward-looking statements are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, the following: changes in general economic conditions, including levels of unemployment and bankruptcies; risks associated with Regional Management’s transition to a new loan origination and servicing software system; risks related to opening new branches, including the ability or inability to open new branches as planned; risks inherent in making loans, including repayment risks and value of collateral, which risks may increase in light of adverse or recessionary economic conditions; risks relating to our first asset-backed securitization; changes in interest rates; the risk that Regional Management’s existing sources of liquidity become insufficient to satisfy its needs or that its access to these sources becomes unexpectedly restricted; changes in federal, state, or local laws, regulations, or regulatory policies

4

and practices, and risks associated with the manner in which laws and regulations are interpreted, implemented, and enforced; the impact of changes in tax laws, guidance, and interpretations, including related to certain provisions of the Tax Cuts and Jobs Act; the timing and amount of revenues that may be recognized by Regional Management; changes in current revenue and expense trends (including trends affecting delinquencies and credit losses); changes in Regional Management’s markets and general changes in the economy (particularly in the markets served by Regional Management); changes in the competitive environment in which Regional Management operates or in the demand for its products; risks related to acquisitions; changes in operating and administrative expenses; and the departure, transition, or replacement of key personnel. Such factors and others are discussed in greater detail in Regional Management’s filings with the Securities and Exchange Commission. Regional Management will not update the information contained in this press release beyond the publication date, except to the extent required by law, and is not responsible for changes made to this document by wire services or Internet services.

About Regional Management Corp.

Regional Management Corp. (NYSE: RM) is a diversified consumer finance company providing a broad array of loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other traditional lenders. Regional Management began operations in 1987 with four branches in South Carolina and has since expanded its branch network across South Carolina, Texas, North Carolina, Tennessee, Alabama, Oklahoma, New Mexico, Georgia, Virginia, and Missouri. Each of its loan products is structured on a fixed rate, fixed term basis with fully amortizing equal monthly installment payments and is repayable at any time without penalty. Regional Management’s loans are sourced through its multiple channel platform, including in its branches, through direct mail campaigns, online credit application networks, retailers, and its consumer website. For more information, please visit www.RegionalManagement.com.

Contact:

Investor Relations

Garrett Edson, (203) 682-8331

5

Regional Management Corp. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

(in thousands, except per share amounts)

							Better (Worse)												Better (Worse)
	3Q 18			3Q 17			$			%			YTD 18			YTD 17			$			%
Revenue
Interest and fee income	$	72,128		$	63,615		$	8,513			13.4	%	$	205,108		$	182,657		$	22,451			12.3	%
Insurance income, net		2,898			3,095			(197	)		(6.4	)%		9,169			9,985			(816	)		(8.2	)%
Other income		2,890			2,484			406			16.3	%		8,680			7,710			970			12.6	%
Total revenue		77,916			69,194			8,722			12.6	%		222,957			200,352			22,605			11.3	%
Expenses
Provision for credit losses		23,640			20,152			(3,488	)		(17.3	)%		63,358			57,875			(5,483	)		(9.5	)%
Personnel		21,376			19,534			(1,842	)		(9.4	)%		61,994			56,089			(5,905	)		(10.5	)%
Occupancy		5,490			5,480			(10	)		(0.2	)%		16,586			16,184			(402	)		(2.5	)%
Marketing		2,132			2,303			171			7.4	%		5,843			5,287			(556	)		(10.5	)%
Other		6,863			6,523			(340	)		(5.2	)%		19,245			19,376			131			0.7	%
Total general and administrative		35,861			33,840			(2,021	)		(6.0	)%		103,668			96,936			(6,732	)		(6.9	)%
Interest expense		8,729			6,658			(2,071	)		(31.1	)%		23,821			17,092			(6,729	)		(39.4	)%
Income before income taxes		9,686			8,544			1,142			13.4	%		32,110			28,449			3,661			12.9	%
Income taxes		2,237			3,235			998			30.9	%		7,535			9,371			1,836			19.6	%
Net income	$	7,449		$	5,309		$	2,140			40.3	%	$	24,575		$	19,078		$	5,497			28.8	%
Net income per common share:
Basic	$	0.64		$	0.46		$	0.18			39.1	%	$	2.11		$	1.65		$	0.46			27.9	%
Diluted	$	0.61		$	0.45		$	0.16			35.6	%	$	2.03		$	1.62		$	0.41			25.3	%
Weighted-average shares outstanding:
Basic		11,672			11,563			(109	)		(0.9	)%		11,649			11,537			(112	)		(1.0	)%
Diluted		12,133			11,812			(321	)		(2.7	)%		12,101			11,752			(349	)		(3.0	)%
Return on average assets (annualized)		3.3	%		2.8	%								3.8	%		3.5	%
Return on average equity (annualized)		11.3	%		9.4	%								12.9	%		11.7	%

6

Regional Management Corp. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(in thousands, except par value amounts)

							Increase (Decrease)
	3Q 18			3Q 17			$			%
Assets
Cash	$	517		$	5,191		$	(4,674	)		(90.0	)%
Gross finance receivables		1,175,797			1,002,630			173,167			17.3	%
Unearned finance charges and insurance premiums		(287,721	)		(227,774	)		(59,947	)		(26.3	)%
Finance receivables		888,076			774,856			113,220			14.6	%
Allowance for credit losses		(55,300	)		(47,400	)		(7,900	)		(16.7	)%
Net finance receivables		832,776			727,456			105,320			14.5	%
Restricted cash		29,327			13,849			15,478			111.8	%
Property and equipment		12,540			12,657			(117	)		(0.9	)%
Intangible assets		10,429			10,239			190			1.9	%
Deferred tax asset		—			5,121			(5,121	)		(100.0	)%
Other assets		7,690			5,337			2,353			44.1	%
Total assets	$	893,279		$	779,850		$	113,429			14.5	%
Liabilities and Stockholders’ Equity
Liabilities:
Long-term debt	$	611,593		$	538,351		$	73,242			13.6	%
Unamortized debt issuance costs		(7,216	)		(5,266	)		(1,950	)		(37.0	)%
Net long-term debt		604,377			533,085			71,292			13.4	%
Accounts payable and accrued expenses		19,510			18,950			560			3.0	%
Deferred tax liability		1,963			—			1,963			100.0	%
Total liabilities		625,850			552,035			73,815			13.4	%
Stockholders’ equity:
Preferred stock ($0.10 par value, 100,000 shares authorized, no shares issued or outstanding)		—			—			—			—
Common stock ($0.10 par value, 1,000,000 shares authorized, 13,336 shares issued and 11,790 shares outstanding at September 30, 2018 and 13,213 shares issued and 11,667 shares outstanding at September 30, 2017)		1,334			1,321			13			1.0	%
Additional paid-in-capital		97,814			93,673			4,141			4.4	%
Retained earnings		193,327			157,867			35,460			22.5	%
Treasury stock (1,546 shares at September 30, 2018 and 2017)		(25,046	)		(25,046	)		—			0.0	%
Total stockholders’ equity		267,429			227,815			39,614			17.4	%
Total liabilities and stockholders’ equity	$	893,279		$	779,850		$	113,429			14.5	%

7

Regional Management Corp. and Subsidiaries

Selected Financial Data

(Unaudited)

(in thousands, except per share amounts)

	Finance Receivables by Product
	3Q 18		2Q 18		QoQ $ Inc (Dec)			QoQ % Inc (Dec)			3Q 17		YoY $ Inc (Dec)			YoY % Inc (Dec)
Small loans	$	414,441	$	384,690	$	29,751			7.7	%	$	363,262	$	51,179			14.1	%
Large loans		410,811		392,101		18,710			4.8	%		308,642		102,169			33.1	%
Total core loans		825,252		776,791		48,461			6.2	%		671,904		153,348			22.8	%
Automobile loans		32,322		39,414		(7,092	)		(18.0	)%		71,666		(39,344	)		(54.9	)%
Retail loans		30,502		31,033		(531	)		(1.7	)%		31,286		(784	)		(2.5	)%
Total finance receivables	$	888,076	$	847,238	$	40,838			4.8	%	$	774,856	$	113,220			14.6	%
Number of branches at period end		346		340		6			1.8	%		344		2			0.6	%
Average finance receivables per branch	$	2,567	$	2,492	$	75			3.0	%	$	2,252	$	315			14.0	%

	Averages and Yields
	3Q 18					2Q 18					3Q 17
	Average Finance Receivables		Average Yield (Annualized)			Average Finance Receivables		Average Yield (Annualized)			Average Finance Receivables		Average Yield (Annualized)
Small loans	$	401,132		40.4	%	$	366,647		40.1	%	$	358,380		42.7	%
Large loans		401,212		28.6	%		375,836		28.6	%		288,684		29.0	%
Automobile loans		35,845		15.6	%		43,980		16.0	%		75,984		16.2	%
Retail loans		30,861		19.3	%		31,530		18.8	%		30,788		17.8	%
Total interest and fee yield	$	869,050		33.2	%	$	817,993		32.7	%	$	753,836		33.8	%
Total revenue yield	$	869,050		35.9	%	$	817,993		35.4	%	$	753,836		36.7	%

	Components of Increase in Interest and Fee Income 3Q 18 Compared to 3Q 17 Increase (Decrease)
	Volume			Rate			Volume & Rate			Net
Small loans	$	4,564		$	(2,048	)	$	(244	)	$	2,272
Large loans		8,153			(263	)		(102	)		7,788
Automobile loans		(1,622	)		(101	)		53			(1,670	)
Retail loans		3			119			1			123
Product mix		(1,375	)		1,244			131			—
Total increase in interest and fee income	$	9,723		$	(1,049	)	$	(161	)	$	8,513

8

	Net Loans Originated (1)
	3Q 18		2Q 18		QoQ $ Inc (Dec)			QoQ % Inc (Dec)			3Q 17		YoY $ Inc (Dec)			YoY % Inc (Dec)
Small loans	$	162,644	$	165,023	$	(2,379	)		(1.4	)%	$	148,820	$	13,824			9.3	%
Large loans		95,410		109,186		(13,776	)		(12.6	)%		105,460		(10,050	)		(9.5	)%
Automobile loans (2)		—		—		—			0.0	%		3,787		(3,787	)		(100.0	)%
Retail loans		5,971		6,713		(742	)		(11.1	)%		7,905		(1,934	)		(24.5	)%
Total net loans originated	$	264,025	$	280,922	$	(16,897	)		(6.0	)%	$	265,972	$	(1,947	)		(0.7	)%

(1) Represents the balance of loan origination and refinancing net of unearned finance charges.

(2) The Company ceased originating automobile loans in November 2017.

	Other Key Metrics
	3Q 18			2Q 18			3Q 17
Net credit losses	$	16,790		$	19,503		$	14,752
Percentage of average finance receivables (annualized)		7.7	%		9.5	%		7.8	%
Provision for credit losses (1)	$	23,640		$	20,203		$	20,152
Percentage of average finance receivables (annualized)		10.9	%		9.9	%		10.7	%
Percentage of total revenue		30.3	%		27.9	%		29.1	%
General and administrative expenses	$	35,861		$	33,215		$	33,840
Percentage of average finance receivables (annualized)		16.5	%		16.2	%		18.0	%
Percentage of total revenue		46.0	%		45.9	%		48.9	%
Same store results:
Finance receivables at period-end	$	886,104		$	839,741		$	768,794
Finance receivable growth rate		14.4	%		15.6	%		10.4	%
Number of branches in calculation		338			334			333

(1) Includes incremental hurricane allowance for credit losses of $3,900 and $3,000 for 3Q 18 and 3Q 17, respectively.

9

	Contractual Delinquency by Aging
	3Q 18				2Q 18				3Q 17
Allowance for credit losses (1)	$	55,300	6.2	%	$	48,450	5.7	%	$	47,400	6.1	%
Current		726,003	81.8	%		704,770	83.1	%		638,696	82.5	%
1 to 29 days past due		99,008	11.1	%		89,510	10.6	%		83,230	10.7	%
Delinquent accounts:
30 to 59 days		22,215	2.5	%		18,886	2.3	%		18,621	2.4	%
60 to 89 days		15,360	1.7	%		12,103	1.4	%		11,631	1.5	%
90 to 119 days		10,183	1.1	%		8,373	1.0	%		9,653	1.2	%
120 to 149 days		8,476	1.0	%		6,857	0.8	%		6,799	0.9	%
150 to 179 days		6,831	0.8	%		6,739	0.8	%		6,226	0.8	%
Total contractual delinquency (2)	$	63,065	7.1	%	$	52,958	6.3	%	$	52,930	6.8	%
Total finance receivables	$	888,076	100.0	%	$	847,238	100.0	%	$	774,856	100.0	%
1 day and over past due	$	162,073	18.2	%	$	142,468	16.9	%	$	136,160	17.5	%

	Contractual Delinquency by Product
	3Q 18				2Q 18				3Q 17
Small loans	$	34,581	8.3	%	$	28,347	7.4	%	$	30,328	8.3	%
Large loans		23,406	5.7	%		19,600	5.0	%		15,578	5.0	%
Automobile loans		2,686	8.3	%		2,909	7.4	%		5,280	7.4	%
Retail loans		2,392	7.8	%		2,102	6.8	%		1,744	5.6	%
Total contractual delinquency (2)	$	63,065	7.1	%	$	52,958	6.3	%	$	52,930	6.8	%

(1) Includes incremental hurricane allowance for credit losses of $3,900 and $3,000 for 3Q 18 and 3Q 17, respectively.

(2) Delinquency was impacted 0.2% by hurricane-affected branches for both 3Q 18 and 3Q 17.

10

	Quarterly Trend
	3Q 17		4Q 17		1Q 18		2Q 18		3Q 18		QoQ $ B(W)			YoY $ B(W)
Revenue
Interest and fee income	$	63,615	$	66,377	$	66,151	$	66,829	$	72,128	$	5,299		$	8,513
Insurance income, net		3,095		3,076		3,389		2,882		2,898		16			(197	)
Other income		2,484		2,654		3,085		2,705		2,890		185			406
Total revenue		69,194		72,107		72,625		72,416		77,916		5,500			8,722
Expenses
Provision for credit losses		20,152		19,464		19,515		20,203		23,640		(3,437	)		(3,488	)
Personnel		19,534		19,903		21,228		19,390		21,376		(1,986	)		(1,842	)
Occupancy		5,480		5,346		5,618		5,478		5,490		(12	)		(10	)
Marketing		2,303		1,841		1,453		2,258		2,132		126			171
Other		6,523		6,929		6,293		6,089		6,863		(774	)		(340	)
Total general and administrative		33,840		34,019		34,592		33,215		35,861		(2,646	)		(2,021	)
Interest expense		6,658		6,816		7,177		7,915		8,729		(814	)		(2,071	)
Income before income taxes		8,544		11,808		11,341		11,083		9,686		(1,397	)		1,142
Income taxes		3,235		923		2,697		2,601		2,237		364			998
Net income	$	5,309	$	10,885	$	8,644	$	8,482	$	7,449	$	(1,033	)	$	2,140
Net income per common share:
Basic	$	0.46	$	0.94	$	0.74	$	0.73	$	0.64	$	(0.09	)	$	0.18
Diluted	$	0.45	$	0.92	$	0.72	$	0.70	$	0.61	$	(0.09	)	$	0.16
Weighted-average shares outstanding:
Basic		11,563		11,592		11,618		11,658		11,672		(14	)		(109	)
Diluted		11,812		11,875		12,030		12,138		12,133		5			(321	)
Net interest margin	$	62,536	$	65,291	$	65,448	$	64,501	$	69,187	$	4,686		$	6,651
Net credit margin	$	42,384	$	45,827	$	45,933	$	44,298	$	45,547	$	1,249		$	3,163
	3Q 17		4Q 17		1Q 18		2Q 18		3Q 18		QoQ $ Inc (Dec)			YoY $ Inc (Dec)
Total assets	$	779,850	$	829,483	$	814,809	$	868,220	$	893,279	$	25,059		$	113,429
Finance receivables	$	774,856	$	817,463	$	804,956	$	847,238	$	888,076	$	40,838		$	113,220
Allowance for credit losses	$	47,400	$	48,910	$	47,750	$	48,450	$	55,300	$	6,850		$	7,900
Long-term debt	$	538,351	$	571,496	$	550,377	$	595,765	$	611,593	$	15,828		$	73,242

11

	Finance Receivables by Product
	3Q 18		2Q 18		QoQ $ Inc (Dec)			QoQ % Inc (Dec)			3Q 17		YoY $ Inc (Dec)			YoY % Inc (Dec)
Small loans	$	414,441	$	384,690	$	29,751			7.7	%	$	363,262	$	51,179			14.1	%
Large loans		410,811		392,101		18,710			4.8	%		308,642		102,169			33.1	%
Total core loans		825,252		776,791		48,461			6.2	%		671,904		153,348			22.8	%
Automobile loans		32,322		39,414		(7,092	)		(18.0	)%		71,666		(39,344	)		(54.9	)%
Retail loans		30,502		31,033		(531	)		(1.7	)%		31,286		(784	)		(2.5	)%
Total finance receivables	$	888,076	$	847,238	$	40,838			4.8	%	$	774,856	$	113,220			14.6	%
Number of branches at period end		346		340		6			1.8	%		344		2			0.6	%
Average finance receivables per branch	$	2,567	$	2,492	$	75			3.0	%	$	2,252	$	315			14.0	%

	Averages and Yields
	YTD 18					YTD 17
	Average Finance Receivables		Average Yield (Annualized)			Average Finance Receivables		Average Yield (Annualized)
Small loans	$	379,543		40.2	%	$	351,204		42.4	%
Large loans		377,777		28.5	%		261,277		28.8	%
Automobile loans		45,041		15.7	%		82,313		16.4	%
Retail loans		31,676		18.9	%		31,389		18.4	%
Total interest and fee yield	$	834,037		32.8	%	$	726,183		33.5	%
Total revenue yield	$	834,037		35.6	%	$	726,183		36.8	%

	Components of Increase in Interest and Fee Income YTD 18 Compared to YTD 17 Increase (Decrease)
	Volume			Rate			Volume & Rate			Net
Small loans	$	9,019		$	(5,876	)	$	(474	)	$	2,669
Large loans		25,145			(457	)		(204	)		24,484
Automobile loans		(4,596	)		(460	)		208			(4,848	)
Retail loans		40			105			1			146
Product mix		(2,479	)		2,615			(136	)		—
Total increase in interest and fee income	$	27,129		$	(4,073	)	$	(605	)	$	22,451

12

	Net Loans Originated (1)
	YTD 18		YTD 17		YTD $ Inc (Dec)			YTD % Inc (Dec)
Small loans	$	451,423	$	424,559	$	26,864			6.3	%
Large loans		293,369		249,251		44,118			17.7	%
Automobile loans (2)		—		18,404		(18,404	)		(100.0	)%
Retail loans		19,986		20,522		(536	)		(2.6	)%
Total net loans originated	$	764,778	$	712,736	$	52,042			7.3	%

(1) Represents the balance of loan origination and refinancing net of unearned finance charges.

(2) The Company ceased originating automobile loans in November 2017.

	Other Key Metrics
	YTD 18			YTD 17
Net credit losses	$	56,968		$	51,725
Percentage of average finance receivables (annualized)		9.1	%		9.5	%
Provision for credit losses (1)	$	63,358		$	57,875
Percentage of average finance receivables (annualized)		10.1	%		10.6	%
Percentage of total revenue		28.4	%		28.9	%
General and administrative expenses	$	103,668		$	96,936
Percentage of average finance receivables (annualized)		16.6	%		17.8	%
Percentage of total revenue		46.5	%		48.4	%

(1) Includes incremental hurricane allowance for credit losses of $3,900 and $3,000 for YTD 18 and YTD 17, respectively.

13

We utilize certain non-GAAP measures as additional metrics to aid in, and enhance, the understanding of our financial results and related measures. We believe that these non-GAAP measures provide useful information by excluding certain material items that may not be indicative of our core operating results. We have presented non-GAAP measures that adjust for the impact of the bulk sale of previously charged-off bankrupt accounts (2017) and natural disasters (2017 and 2018) because these types of events rarely occurred prior to 2017 and, we believe, will occur infrequently in the future. As a result, we believe that the non-GAAP measures that we have presented will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of our results in the current period to those in prior and future periods. The non-GAAP financial information should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. In addition, our non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies. The following table provides a reconciliation of GAAP measures to non-GAAP measures for the periods which include non-GAAP adjustments.

	Non-GAAP Reconciliation
	3Q 18		Adjustments (1)		Non-GAAP
Net income	$	7,449	$	2,884	$	10,333
Diluted net income per common share	$	0.61	$	0.24	$	0.85
	Non-GAAP Reconciliation
	3Q 17		Adjustments (1)		Non-GAAP
Net income	$	5,309	$	1,541	$	6,850
Diluted net income per common share	$	0.45	$	0.13	$	0.58

(1) Non-GAAP adjustment details are listed below:

	Non-GAAP Adjustments (2)
	3Q 18		3Q 17
Estimated hurricane impact (3)	$	2,884	$	2,173
Bulk sale of previously charged-off bankrupt accounts		—		(632	)
Adjustment to net income	$	2,884	$	1,541
Adjustment to diluted net income per common share	$	0.24	$	0.13

(2) The effective tax rates were 25.0% and 38.3% for 3Q 18 and 3Q 17, respectively.

(3) The estimated hurricane impact relates to an incremental pre-tax allowance for credit losses of $3.9 million (3Q 18) and $3.0 million (3Q 17), along with minor impacts to revenue and expenses.

14

EX-99.2

Exhibit 99.2

3Q 2018 Earnings Call Supplemental Presentation November 8, 2018

Safe Harbor Statement This document contains summarized information concerning Regional Management Corp. (the “Company”) and the Company’s business, operations, financial performance, and trends. No representation is made that the information in this document is complete. For additional financial, statistical, and business information, please see the Company’s most recent Annual Report on Form 10?K and Quarterly Reports on Form 10?Q filed with the U.S. Securities and Exchange Commission (the “SEC”), as well as the Company’s other reports filed with the SEC from time to time. Such reports are or will be available on the Company’s website (www.regionalmanagement.com) and the SEC’s website (www.sec.gov). This presentation, the related remarks, and the responses to various questions may contain various “forward?looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent the Company’s expectations or beliefs concerning future events. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “outlook,“and similar expressions may be used to identify these forward?looking statements. Such forward?looking statements are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of the Company. Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward?looking statements include, but are not limited to, the following: changes in general economic conditions, including levels of unemployment and bankruptcies; risks associated with the Company’s transition to a new loan origination and servicing software system; risks related to opening new branches, including the ability or inability to open new branches as planned; risks inherent in making loans, including repayment risks and value of collateral, which risks may increase in light of adverse or recessionary economic conditions; risks relating to the Company’s first asset?backed securitization; changes in interest rates; the risk that the Company’s existing sources of liquidity become insufficient to satisfy its needs or that its access to these sources becomes unexpectedly restricted; changes in federal, state, or local laws, regulations, or regulatory policies and practices, and risks associated with the manner in which laws and regulations are interpreted, implemented, and enforced; the impact of changes in tax laws, guidance, and interpretations, including related to certain provisions of the Tax Cuts andJobs Act; the timing and amount of revenues that may be recognized by the Company; changes in current revenue and expense trends (including trends affecting delinquencies and credit losses); changes in the Company’s markets and general changes in the economy (particularly in the markets served by the Company); changes in the competitive environment in which the Company operates or in the demand for its products; risks related to acquisitions; changes in operating and administrative expenses; and the departure, transition, or replacement of key personnel. Such factors and others are discussed in greater detail in the Company’s filings with the SEC. The Company cannot guarantee future events, results, actions, levels of activity, performance, or achievements. Except to the extent required by law, neither the Company nor any of its respective agents, employees, or advisors intend or have any duty or obligation to supplement, amend, update, or revise any forward?looking statement, whether as a result of new information, future developments, or otherwise. This presentation also contains certain non?GAAP measures. Please refer to the Appendix accompanying this presentation for a reconciliation of non?GAAP measures to the most comparable GAAP measures. The information and opinions contained in this document are provided as of the date of this presentation and are subject to change without notice. This document has not been approved by any regulatory or supervisory authority. 2

3Q 18 Highlights –Continued Double?Digit Growth (dollars in millions, except EPS) 3Q 18 3Q 17 Chg B/(W) % Chg B/(W) Total Finance Receivables $888.1 $774.9 $113.2 14.6% Total Revenue 77.9 69.2 8.7 12.6% Provision for Credit Losses 23.6 20.2 (3.5) (17.3%) G&A Expense 35.9 33.8 (2.0) (6.0%) Net Income $7.4 $5.3 $2.1 40.3% Non?GAAP Net Income $10.3 $6.9 $3.5 50.8% ROA 3.3% 2.8% 0.5% 17.9% ROE 11.3% 9.4% 1.9% 20.2% Diluted EPS $0.61 $0.45 $0.16 35.6% Non?GAAP Diluted EPS $0.85 $0.58 $0.27 46.6% • Net income of $7.4 million, or $0.61 diluted EPS; non?GAAP net income of $10.3 million, or $0.85 non?GAAP diluted EPS - Non?GAAP results in 3Q 18 and 3Q 17 exclude the negative impact of hurricanes, while 3Q 17 also excludes the benefit from the bulk sale of previously charged?off bankrupt accounts - See detailed GAAP to non?GAAP reconciliation on slide 10 • Revenue growth of 12.6% driven by a 14.6% increase in year?over?year finance receivables growth • Provision for credit losses increased 17.3% versus the prior?year period - Provision for credit losses for 3Q 18 included $3.9 million of incremental hurricane allowance; 3Q 17 provision for credit losses included $3.0 million of incremental hurricane allowance and a $1.0 million benefit resulting from the bulk sale • G&A expense increased 6.0%, or $2.0 million, year?over?year - Annualized G&A expense as a percentage of average finance receivables is down 150 basis points year?over?year from 18.0% to 16.5% 3

14 Consecutive Quarters of Double?Digit Portfolio Growth in millions Finance Receivables 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 Small Loans (? $2,500) $320 $349 $358 $336 $349 $363 $376 $360 $385 $414 Large Loans (> $2,500) $195 $217 $235 $242 $268 $309 $347 $364 $392 $411 Core Loan Products $515 $566 $594 $578 $617 $672 $723 $724 $777 $825 Automobile Loans $101 $97 $90 $86 $80 $72 $61 $49 $39 $32 Retail Loans $30 $33 $34 $31 $30 $31 $33 $32 $31 $31 Total $646 $696 $718 $695 $727 $775 $817 $805 $847 $888 Total YoY Ä ($) $73 $95 $89 $88 $81 $79 $100 $110 $120 $113 Total YoY Ä (%) 12.8% 15.7% 14.2% 14.4% 12.5% 11.3% 13.9% 15.8% 16.6% 14.6% vs. 2Q 18 vs. 3Q 17 $ Chg I/(D) % Chg I/(D) $ Chg I/(D) % Chg I/(D) $30 7.7% $51 14.1% $19 4.8% $102 33.1% $48 6.2% $153 22.8% ($7) (18.0%) ($39) (54.9%) ($1) (1.7%) ($1) (2.5%) $41 4.8% $113 14.6% • 14 consecutive quarters of double?digit growth • Core loans are 93% of total loan portfolio • Strong small loan growth of 14% from prior year • Approximately 50% of small loans qualify to apply for a large loan offer 4

Revenue Driven by Strong Year?Over?Year Portfolio Growth $80.0 Revenue $77.9 $75.0 $72.1 $72.6 $72.4 $70.0 $69.2 $64.0 $65.8 $65.3 $65.0 $62.5 Millions $60.0 $57.3 $55.0 $50.0 $45.0 $40.0 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 Interest & Fee Income Insurance Income Other Income • 9 consecutive quarters of year?over?year double?digit revenue growth • 3Q 18 interest and fee yield improved 50 basis points sequentially Total Revenue 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 Sequential Ä 1.1% 9.0% 2.5% 2.8% (0.7%) 5.9% 4.2% 0.7% (0.3%) 7.6% YoY Ä 8.2% 13.4% 12.9% 16.1% 14.0% 10.8% 12.6% 10.3% 10.8% 12.6% Average Finance Receivables 40.0% Total Revenue and Interest & Fee Yield $900 $869 $850 $814 $818 $797 AFR) 37.5% 36.7% 37.0% 37.1% 36.9% 36.7% $800 of 36.2% 36.2% 35.9% $754 % 35.7% 35.4% $750 $707 $709 $708 35.0% 34.0% $700 $675 33.7% 33.8% 33.8% 33.8% Millions 33.4% 33.3% 33.2% 32.5% 32.7% $650 $625 (Annualized Yields 32.5% $600 $550 30.0% $500 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 $450 Total Revenue Yield Interest & Fee Yield 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 Total Revenue 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 Sequential Ä 1.2% 8.0% 4.8% 0.3% (0.2%) 6.5% 5.7% 2.2% 0.4% 6.2% Sequential Ä 0.0% 0.3% (0.8%) 0.9% (0.2%) (0.2%) (0.5%) (0.5%) (0.3%) 0.5% YoY Ä 13.6% 14.6% 15.1% 14.9% 13.3% 11.8% 12.7% 14.8% 15.6% 15.3% YoY Ä (1.8%) (0.4%) (0.7%) 0.4% 0.2% (0.3%) 0.0% (1.4%) (1.5%) (0.8%) 5

Provision Tracking with Growth; NCL Rate Down Year?Over?Year Net Credit Loss Rates 12.0% 10.9% 12.0% • NCL rate in 3Q 18 10.2% 9.8% 9.9% AFR) 10.0% 9.0% 9.5% 10.0% decreased 10 basis points of 8.6% % 8.0% 7.8% 7.7% compared to 3Q 17 8.0% 8.0% • Provision as a percentage of 6.0% 6.0% (Annualized revenue and allowance as a Losses 4.0% 4.0% percentage of finance Credit receivables increased year? 2.0% Net Credit Losses 2.0% Net over?year due to hurricane 0.0% 0.0% reserves 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 Sequential Ä (1.1%) (0.6%) 1.8% 1.1% (1.0%) (2.1%) 1.2% 1.2% (0.7%) (1.8%) Year/Year Ä (0.8%) (0.5%) 2.1% 1.2% 1.3% (0.2%) (0.8%) (0.7%) (0.4%) (0.1%) Provision for Credit Losses Allowance as % of Finance Receivables $30.0 35.0% $80.0 7.0% 30.3% 30.3% 6.1% 6.2% 29.1% 28.5% 29.1% 5.9% 6.0% 5.9% 27.9% 5.7% 5.8% 5.7% 27.0% 26.9% 30.0% $70.0 5.6% 5.6% $25.0 26.3% 6.0% 23.4% $23.6 $60.0 $20.0 25.0% Losses 5.0% EFR) $20.2 $20.2 AFR $55.3 of $19.4 $19.1 $19.5 $19.5 $50.0 $18.6 20.0% $48.9 $48.5 4.0% (% $15.0 and Credit $47.4 $47.8 $16.4 $40.0 $42.0 15.0% for $41.3 $41.0 $39.1 3.0% Millions $13.4 $36.2 9.7% 11.0% 10.8% 10.5% 10.7% 9.8% 9.9% 10.9% $30.0 $10.0 9.6% 8.6% 10.0% Revenue 2.0% Allowance $20.0 $5.0 5.0% of Allowance 1.0% % $10.0 $0.0 0.0% $0.0 0.0% 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 Provision for Credit Losses % of Revenue Annualized % of AFR Allowance Allowance as % of Finance Receivables % of Revenue 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 Sequential Ä (0.4%) 0.0% 0.1% 0.2% (0.1%) 0.3% (0.1%) (0.1%) (0.2%) 0.5% Sequential Ä (0.9%) 2.9% 4.0% (1.2%) (0.6%) 0.6% (2.1%) (0.1%) 1.0% 2.4% YoY Ä (0.7%) (0.7%) (0.3%) (0.1%) 0.2% 0.5% 0.3% 0.0% (0.1%) 0.1% YoY Ä 0.6% 0.7% 10.1% 4.8% 5.1% 2.8% (3.3%) (2.2%) (0.6%) 1.2% % of AFR 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 Sequential Ä (0.3%) 1.1% 1.3% (0.2%) (0.3%) 0.2% (0.9%) (0.2%) 0.3% 1.0% YoY Ä (0.2%) 0.1% 3.5% 1.9% 1.9% 1.0% (1.2%) (1.2%) (0.6%) 0.2% 6

Seasonal Pattern of Delinquency $70.0 30+ Delinquency Trend $60.0 $6.8 $7.3 $8.5 $25.5 $50.0 $6.9 $6.2 $8.9 $27.5 $6.7 $8.8 $5.8 $5.5 $8.2 $6.8 $6.9 $10.2 $4.9 $6.6 $22.7 $22.0 $40.0 $7.2 $25.1 $11.3 $7.9 $21.4 $6.3 $26.4 Millions $5.4 $17.5 $19.6 in $7.0 $21.2 $9.7 $8.4 Delinquency $8.4 $10.0 $7.8 $9.7 $30.0 $7.2 $15.4 $7.6 $15.3 $12.1 $11.6 $10.0 $11.0 $11.6 $10.7 $20.0 $11.5 $9.9 $10.0 $22.2 $16.7 $17.3 $16.7 $17.0 $18.6 $18.7 $18.9 $13.9 $14.9 $0.0 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 30?59 Days 60?89 Days 90?119 Days 120?149 Days 150?179 Days 30+ & 90+ Delinquency Rates 10.0% 10.0% • 3Q 18 Delinquency: 7.4% 7.5% 8.0% 7.1% 7.1% 8.0% ?30+ days past due of 7.1% is 0.3% 6.8% 6.8% 6.5% 6.5% 6.5% 6.3% higher than prior year 6.0% 6.0% Receivables 3.5% 3.4% 3.3% 4.0% 3.1% 3.0% 2.9% 2.9% 4.0% ?90+ days past due of 2.9% is Finance 2.7% 2.7% 2.6% consistent with the prior?year period 2.0% 2.0% 0.0% 0.0% • October Delinquency: 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 ?30+ days past due returned to same 30+ Delinquency Rate 90+ Delinquency Rate level as the prior?year period 30+ DQ 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 Sequential Ä 0.6% 0.3% 0.3% (0.9%) 0.0% 0.3% 0.7% (1.0%) (0.2%) 0.8% YoY Ä 0.4% (0.2%) 0.2% 0.3% (0.3%) (0.3%) 0.1% 0.0% (0.2%) 0.3% 7

G&A Expense Ratio Improved 150 Basis Points Total G&A Expenses $50.0 18.9% 20.0% 18.1% 17.7% 17.9% 18.0% 17.1% 17.0% 18.0% 16.3% 16.2% 16.5% $40.0 16.0% 14.0% $34.0 $34.6 $35.9 AFR $33.8 $33.2 $30.0 $31.5 $31.6 12.0% of $29.5 $30.5 % Millions $28.8 10.0% $20.0 8.0% 6.0% Annualized $10.0 4.0% 2.0% $0.0 0.0% 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 Sequential Ä (0.9%) 3.1% (5.3%) 9.1% 0.6% 6.9% 0.5% 1.7% (4.0%) 8.0% YoY Ä 4.6% 16.3% 1.0% 5.5% 7.1% 11.1% 18.0% 10.0% 5.0% 6.0% As % of AFR 18.9% 18.1% 16.3% 17.7% 17.9% 18.0% 17.1% 17.0% 16.2% 16.5% • 3Q 18 annualized G&A expense as a percentage of average finance receivables improved 150 basis points from the prior?year period • Potential to improve an additional 150 to 200 basis points over next 3 years (assuming current finance receivable growth rate) 8

Appendix 9

GAAP to Non?GAAP Reconciliation We utilize certain non?GAAP measures as additional metrics to aid in, and enhance, the understanding of our financial results and related measures. We believe that these non?GAAP measures provide useful information by excluding certain material items that may not be indicative of our core operating results. We have presented non?GAAP measures that adjust for the impact of the bulk sale of previously charged?off bankrupt accounts (2017) and natural disasters (2017 and 2018) because these types of events rarely occurred prior to 2017 and, we believe, will occur infrequently in the future. As a result, we believe that the non?GAAP measures that we have presented will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of our results in the current period to those in prior and future periods. The non?GAAP financial information should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. In addition, our non?GAAP measures may not be comparable to similarly titled non?GAAP measures of other companies. The following table provides a reconciliation of GAAP measures to non?GAAP measures for the periods which include non?GAAP adjustments. Non?GAAP Reconciliation (in millions, except EPS) 3Q 18 Adj (1) Non?GAAP Net income $7.4 $2.9 $10.3 Diluted net income per common share $0.61 $0.24 $0.85 Non?GAAP Reconciliation (in millions, except EPS) 3Q 17 Adj (1) Non?GAAP Net income $5.3 $1.5 $6.9 Diluted net income per common share $0.45 $0.13 $0.58 (1) Non?GAAP adjustment details are listed below: Non?GAAP Adjustments (2) (in millions, except EPS) 3Q 18 3Q 17 Estimated hurricane impacts (3) $2.9 $2.2 Bulk sale of previously charged?off accounts — (0.6) Adjustments to net income $2.9 $1.5 Diluted shares 12.1 11.8 Adjustments to diluted EPS $0.24 $0.13 (2) The effective tax rates were 25.0% and 38.3% for 3Q 18 and 3Q 17, respectively. (3) The estimated hurricane impact relates to an incremental pre?tax allowance for credit losses of $3.9 million (3Q 18) and $3.0 million (3Q 17), along with lesser impacts to revenue and expenses. 10