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4Q 25 Earnings Presentation February 4, 2026
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Legal Disclosures This document contains summarized information concerning Regional Management Corp. (the “Company”) and the Company’s business , operations, financial performance, and trends. No representation is made that the information in this document is complete. For additional financial, statistical, and business information, p lease 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 on the SEC’s website (www.sec.gov). The information and opinions co ntained 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 auth ority. 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. Forward-looking statements are not statements of historical fact but instead represent the Company’s expectations or belie fs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlook or future plans, objectives, goals, projections, strategies, events, or p erformance, and underlying assumptions and other statements related thereto. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estim ates,” “outlook,” and similar expressions may be used to identify these forward-looking statements. Such forward-looking statements speak only as of the date on which they were made and are about matters that are inh erently subject to risks and uncertainties, many of which are outside of the control of the Company. As a result, actual performance and results may differ materially from those contemplated by thes e forward-looking statements. Therefore, investors should not place undue reliance on such statements. Factors that could cause actual results or performance to differ from the expectations expressed or implied in forward -looking statements include, but are not limited to, the following: managing growth effectively, implementing the Company’s growth strategy, and opening new branches as planned; the Company’s convenience check strategy; the Company’s policies and procedures for underwriting, processing, and servicing loans; the Company’s ability to collect on its loan portfolio; the Company’s insurance operations; exposure to credit risk and repayment risk, which risks may increase in light of adverse or recessionary economic conditions; the implementation of evolving underwriting models and processes, including as to t he effectiveness of the Company’s custom scorecards; changes in the competitive environment in which the Company operates or a decrease in the demand for its products; the geographic concentration of the Company’s loan portfolio; the failure of third-party service providers, including those providing information technology products; changes in economic conditions in the markets the Company serves, including levels of unemployment and bankruptcies; the ability to achieve successful acquisitions and strategic alliances; the ability to make technological improvements as quickly as comp etitors; security breaches, cyber-attacks, failures in information systems, or fraudulent activity; the ability to originate loans; reliance on information technology resources and providers, including th e risk of prolonged system outages; changes in current revenue and expense trends, including trends affecting delinquencies and credit losses; any future public health crises, including the impact of such crisis on our operations and financial condition; changes in operating and administrative expenses; the departure, transition, or replacement of key personnel; the ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support the Company’s operations and initiatives; changes in interest rates; existing sources of liquidity may become insufficient or access to these sources may become unexpectedly restricted; exposure to financial risk due to asset-backed securitization transactions; risks related to regulation and legal proceedings, including changes in laws or regulations or in the interpretation or enforcement of laws or regulations; changes in accounting standards, rules, and interpre tations and the failure of related assumptions and estimates; the impact of changes in tax laws and guidance, including the timing and amount of revenues that may be recognized; risks related to the ow nership of the Company's common stock, including volatility in the market price of shares of the Company's common stock; the timing and amount of future cash dividend payments; and anti -takeover provisions in the Company's charter documents and applicable state law. The foregoing factors and others are discussed in greater detail in the Company's filings with the SEC. The Company will not update or revise forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments, or otherwise, except as required by law. This presentation 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. This presentation also contains certain financial terms and abbreviations. Please refer to the Appendix accompanying this pre sentation for a glossary of terms and abbreviations. 2
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FY 25 Highlights Increased share repurchase program from $30MM to $60MM $44.4MM net income $4.45 diluted EPS 13.1% net finance receivables growth Dividends of $1.20 per common share Repurchased $24MM or 702 thousand shares of our common stock at a weighted-average price of $34.12 per share Dividend yield of 3.1% Opened 17 new branches in 2025 to expand addressable market; revenue increased 9.7% YoY 18.6% YoY increase in originations13.1% operating expense ratio Five years of YoY improvement Improved 70 bps YoY $2.0B originations Net income and diluted EPS up 7.7% and 7.5% YoY, respectively 3
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4Q 25 Highlights 590,800 Customer Accounts Up 2.7% YoY $87MM Sequential ENR Growth Up $248MM, or 13.1% YoY $537MM Origination Volume Up $61MM, or 12.9% YoY $6.1MM ENR per Branch Up 10.2% YoY $294MM Auto-Secured Portfolio Up $88MM, or 42.4% YoY 4 Growth Operating Effectiveness Returns 7.5% 30+ DQ % 20 bps improvement YoY 11.0% Net Credit Loss Rate 30 bps improvement YoY after adjusting for 4Q 24 hurricane impact 12.4% Operating Expense Ratio Historic best, 160 bps improvement YoY 84% Fixed-Rate Debt WAC of 4.7% $511MM Unused Capacity Substantial bandwidth to fund growth $1.30 Diluted Earnings Per Share Up 32.7% YoY 13.8% ROE / 2.5% ROA Up 270 bps YoY / Up 40 bps YoY 3.1% Dividend Yield 4Q 25 $0.30 dividend per share $36MM Capital Return and $16MM Increase in Stockholders’ Equity (YTD) $74MM Capital Generation (YTD) (1) (1) This is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measure.
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4Q 25 Financial Highlights Significant improvement across key financial metrics: • Net income up $3.0MM or 30.2% YoY • ROE and ROA up 270 bps and 40 bps YoY, respectively • Record total revenue of $169.7MM grew 9.6% YoY • All-time best operating expense ratio of 12.4%, YoY improvement of 160 bps 5 $ in millions (except per share amounts) 4Q 25 4Q 24 Total revenue 169.7$ 154.8$ 14.9$ 9.6% Provision for credit losses 66.4 57.6 (8.8) (15.2%) G&A expense 64.5 64.6 0.1 0.2% Interest expense 22.6 19.8 (2.8) (14.3%) Income taxes 3.2 2.8 (0.4) (14.4%) Net income 12.9$ 9.9$ 3.0$ 30.2% Diluted EPS 1.30$ 0.98$ 0.32$ 32.7% Ending net finance receivables 2,140.2$ 1,892.5$ 247.7$ 13.1% Average net finance receivables 2,088.3$ 1,852.8$ 235.4$ 12.7% Operating expense ratio 12.4% 14.0% Return on assets 2.5% 2.1% Return on equity 13.8% 11.1% $ Chg B/(W) % Chg B/(W)
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% YoY Δ 3.9% 6.8% 8.4% 10.5% 12.8% 13.1% Total sequential change $46.0 $72.8 ($2.2) $70.0 $92.7 $87.2 $1,819.8 $1,892.5 $1,890.4 $1,960.4 $2,053.0 $2,140.2 71.1% 70.6% 71.2% 72.1% 73.7% 74.4% 28.9% 29.4% 28.8% 27.9% 26.3% 25.6% $0. 0 $500.0 $1,000.0 $1,500.0 $2,000.0 $2,500.0 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 Large Loans (> $2,500) Small Loans (≤ $2,500) Portfolio Growth Trend ($ in millions) Accelerating Portfolio Growth 6 • Record total originations, driven by strong performance from digital leads, demand for auto-secured products, and 17 new branches opened since 4Q 24 • Achieved 13.1% YoY portfolio growth from new branch openings and from growth in high- quality auto-secured and higher-margin small loan portfolios • Auto-secured product portfolio grew $87.7MM to 13.7% of the total portfolio, compared to 10.9% in the prior-year period • Portfolio of loans with an APR greater than 36% grew $32.5MM, or 9.3%, and represents 17.9% of the total portfolio Quarterly Origination Trend ($ in millions) % YoY Δ 0.3% 16.7% 20.2% 19.8% 22.5% 12.9% $426.2 $475.9 $392.1 $510.3 $522.3 $537.3 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25
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Increased ENR Per Branch is Driving Efficiency • The 17 new branches opened since 4Q 24 have generated $52.3MM, or 21.1%, of the $247.7MM YoY portfolio growth • Same store receivables grew 10.9% YoY, outpacing 4Q 24 YoY growth of 6.1% 7(1) The less than 1 year branch cohort as of 4Q 25 consisted of branches with an average age of approximately 8 months compared to the cohort as of 4Q 24 with an average age of approximately 4 months # of branches (4Q 24) # of branches (4Q 25) 353 344 288 287 17 7 13 22 35 28 $1,755 $7,419 $5,582 $5,438 $5,502 $3,076 $7,133 $8,283 $5,921 $6,063 < 1 Year (1) 1-3 Years 3-5 Years 5+ Years All ENR Per Branch ($ in thousands) ENR Per Branch (4Q 24) ENR Per Branch (4Q 25)
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• Record total revenue of $169.7MM grew 9.6% YoY • Total revenue yield down 90 bps YoY primarily due to mix shift to larger loans • Total revenue yield 70 bps lower YoY after adjusting for the 4Q 24 release of personal property insurance reserves of $1MM, or 20 bps, related to hurricane activity 8 Revenue Up 9.6% on Continued Receivable Growth Total Revenue and Interest & Fee Yields Total Revenue ($ in millions) (1) The favorable/(unfavorable) impact from 3Q 24 hurricane activity on total revenue yield Sequential Δ 2.3% 5.8% (1.2%) 2.9% 5.1% 2.5% YoY Δ 3.9% 9.3% 6.0% 10.1% 13.1% 9.6% Total revenue sequential Δ (0.1%) 0.8% (1.0%) 0.5% 0.2% (0.6%) Total revenue YoY Δ (0.1%) 1.1% (0.4%) 0.2% 0.5% (0.9%) Hurricane impact (1) (0.8%) 0.2% 0.1% 0.1% 32.6% 33.4% 32.4% 32.9% 33.1% 32.5% 29.9% 29.8% 28.9% 29.4% 29.7% 29.3% 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 Total Revenue Yield Interest and Fee Yield $146.3 $154.8 $153.0 $157.4 $165.5 $169.7 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 Other Income Insurance Income Interest and Fee Income
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Recent Credit Trends 30+ & 90+ DQ % ($ in millions) Net Credit Loss Rates 9 (1) The favorable impact on the net credit loss rate in 4Q 24 from 3Q 24 hurricane activity, and the unfavorable impact to 2Q 25 30+ DQ % Sequential Δ - 0.8% (0.6%) (0.5%) 0.4% 0.5% YoY Δ (0.4%) 0.8% - (0.3%) 0.1% (0.2%) 90+ DQ % Sequential Δ 0.1% 0.4% (0.1%) (0.5%) 0.2% 0.4% YoY Δ (0.1%) 0.7% (0.1%) (0.1%) - - Sequential Δ (2.1%) 0.2% 1.6% (0.5%) (1.7%) 0.8% YoY Δ (0.4%) (4.3%) 1.8% (0.8%) (0.4%) 0.2% Hurricane Impact (1) (0.5%) 0.4% $63.0 $73.7 $72.4 $65.1 $72.3 $82.8 $63.0 $72.2 $61.6 $64.3 $72.0 $78.4 $126.0 $145.8 $134.0 $129.4 $144.3 $161.2 3.5% 3.9% 3.8% 3.3% 3.5% 3.9% 6.9% 7.7% 7.1% 6.6% 7.0% 7.5% 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 30-89 Days 90-179 Days 90+ DQ % 30+ DQ % 10.6% 10.8% 12.4% 11.9% 10.2% 11.0% 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 Net Credit Loss Rate • 4Q 25 delinquency improved 20 bps YoY to 7.5% • 30+ days past due of $161.2MM compares favorably to the allowance for credit losses of $220.9MM as of 4Q 25 • 4Q 25 net credit loss rate increased 20 bps YoY • Prior year included a 50 bps benefit from hurricane activity • Net credit loss rate improved by 30 bps YoY after adjusting for hurricane benefit due to credit tightening and product mix
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Allowance for Credit Losses Sequential $ ∆ $6.7 $7.4 ($0.4) $3.7 $9.2 $8.9 $192.1 $199.5 $199.1 $202.8 $212.0 $220.9 10.6% 10.5% 10.5% 10.3% 10.3% 10.3% 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 ACL ACL Rate Reserves for Credit Losses • ACL increased $8.9MM in 4Q 25 on portfolio growth; ACL rate remained flat sequentially at 10.3% compared to 10.5% in the prior year which included an estimated 10 bps of hurricane impact. • The Company is required to reserve for expected lifetime credit losses at the origination of each loan, while the revenue benefits are recognized over the life of the loan. Allowance for Credit Losses ($ in millions) 10
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Improving Operating Leverage While Investing in Our Business 11 Operating Expense Ratio ($ in millions) • All-time best operating expense ratio of 12.4%, YoY improvement of 160 bps, despite investment in technology, digital capabilities, and growth, including 17 new branches opened since 4Q 24 • Achieved strong 4Q 25 revenue growth of 9.6%, or $14.9MM, while G&A expenses improved $0.1MM YoY Operating Expense Ratio YoY Δ (0.5%) (0.8%) 0.3% (0.6%) (1.1%) (1.6%) $62.5 $64.6 $66.0 $62.9 $64.1 $64.5 13.9% 14.0% 14.0% 13.2% 12.8% 12.4% 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 Total G&A Expense Operating Expense Ratio
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Cost of Funds YoY Δ 0.3% 0.2% 0.2% 0.2% 0.1% 0.1% $19.4 $19.8 $19.8 $20.4 $22.0 $22.6 4.3% 4.2% 4.2% 4.2% 4.4% 4.3% 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 Interest Expense Cost of Funds • Cost of funds increased 10 bps YoY due to increased average debt and the maturation of lower -cost, fixed-rate debt Cost of Funds 12 Interest Expense ($ in millions)
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• Total unused capacity was $511MM (subject to borrowing base) as of December 31, 2025 • Available liquidity of $149MM as of December 31, 2025 • Fixed-rate debt represented 84% of total debt as of December 31, 2025, with WAC of 4.7% and a weighted- average revolving duration of 1.1 years • 4Q 25 securitization WAC of 4.8%, a 50 bps improvement from 1Q 25 securitization WAC of 5.3% Strong Funding Profile Unused Capacity ($ in millions) Fixed vs. Variable Debt Funded Debt Ratios 13(1) This is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measure. $555 $552 $466 $511 2022 2023 2024 2025 0.8 0.8 0.8 0.8 4.4 4.3 4.1 4.44.6 4.6 4.4 4.8 2022 2023 2024 2025 Funded Debt Ratio Funded Debt- to-Equity Ratio Funded Debt- to-Tangible Equity Ratio (1) 88% 82% 79% 84% 12% 18% 21% 16% 2022 2023 2024 2025 % Variable Debt % Fixed Debt Cost of funds 2.2% 3.9% 4.2% 4.3% Transaction Period Debt Balance Revolving Maturity Maturity Date WAC 3Q 21 $200 Jul 2026 Aug 2033 2.3% 4Q 21 $125 Sep 2026 Oct 2033 3.9% 1Q 22 $98 Feb 2025 Mar 2032 4.4% 2Q 24 $188 May 2027 Jul 2036 6.2% 4Q 24 $251 Nov 2026 Dec 2033 5.3% 1Q 25 $266 Mar 2027 Apr 2034 5.3% 4Q 25 $253 Oct 2027 Nov 2037 4.8% Securitizations as of December 31, 2025 ($ in millions)
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Excess Capital Consistently Returned to Stockholders • Capital Performance Since 2020 • $215MM total capital increase • $188MM returned to stockholders • $403MM capital generated • 12.8% CAGR • 21.4% ratio of capital generation to average stockholders’ equity • Proven track record of excess capital generation allowing returns to stockholders and reinvestment in strategic initiatives to generate sustainable, long-term profitable growth • Significant capital generated even during most recent periods of high inflation 14 (1) Cumulative change since year-end 2019 through year-end 2025. (2) This is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measure. $ in millions 2020 2021 2022 2023 2024 2025 Cumulative (1) Total capital, net of capital return: Stockholders' equity 272.1$ 282.7$ 308.6$ 322.3$ 357.1$ 373.1$ 116.2$ Allowance for credit losses 150.0 159.3 178.8 187.4 199.5 220.9 98.6 Total capital 422.1$ 442.0$ 487.4$ 509.7$ 556.6$ 594.0$ 214.8$ B/(W) vs prior period 43.0$ 19.9$ 45.4$ 22.2$ 46.9$ 37.4$ Capital return: Dividends to stockholders 2.3$ 9.9$ 11.8$ 11.9$ 12.3$ 12.2$ 60.4$ Stock repurchased 12.0 67.4 20.6 - 3.5 24.1 127.7 Cumulative capital return 14.3$ 91.7$ 124.1$ 136.0$ 151.9$ 188.2$ 188.2$ Total capital and capital return (2) 436.4$ 533.7$ 611.5$ 645.7$ 708.4$ 782.2$ 403.0$ Capital generation (2) 57.3$ 97.3$ 77.8$ 34.2$ 62.8$ 73.7$ 403.0$ Capital generation as % of average stockholders' equity (2) 21.4% 34.7% 25.8% 10.6% 18.2% 20.3% 21.4% Book value per share 24.89$ 28.89$ 32.41$ 33.02$ 35.67$ 39.05$ $422.1 $442.0 $487.4 $509.7 $556.6 $594.0 $436.4 $533.7 $611.5 $645.7 $708.4 $782.2 Capital Generation Total Capital, Net of Capital Return Total Capital and Capital Return 12.8% CAGR (+$403MM) 7.8% CAGR (+$215MM) Capital Return of $188MM
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Appendix 15
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• Digitally sourced origination volume increase YoY driven by geographic expansion and our auto-secured product • Digitally sourced origination volume represented 31.5% of total new borrower volume • Large loans represented 78.3% of new borrower digitally sourced loans booked in 4Q 25 Digitally Sourced Origination Volume ($ in millions) Digitally Sourced Originations 16 Total Digitally Sourced Volume % YoY Δ (0.1%) 34.9% 46.1% 27.5% 51.7% 16.2% $50.7 $53.8 $45.6 $64.6 $76.9 $62.5 29.0% 26.1% 24.9% 32.2% 36.5% 31.5% 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 Large Loans Small Loans % of Total New Borrowers
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Diversified Liquidity Profile • Long history of liquidity support from a strong group of banking partners • Diversified funding platform with a senior revolving facility, warehouse facilities, and securitizations 17 As of December 31, 2025 Senior Revolver Warehouse Facilities Private Securitization Securitizations Size $355MM $425MM $125MM $1,255MM (1) Interest type Floating Floating Fixed Fixed Maturity date Aug 2028 $125MM, May 2027 $125MM, Oct 2026 $100MM, Nov 2027 $75MM, Feb 2028 Oct 2033 2021-2, $200MM, Aug 2033 2022-1, $98MM, Mar 2032 2024-1, $188MM, Jul 2036 2024-2, $251MM, Dec 2033 2025-1, $266MM, April 2034 2025-2, $253MM, November 2037 Effective rate 6.6% (one-month SOFR plus a 2.8% margin with a SOFR floor of 0.5%) 3.9% 2021-2, $200MM, 2.3% 2022-1, $98MM, 4.4% 2024-1, $188MM, 6.2% 2024-2, $251MM, 5.3% 2025-1, $266MM, 5.3% 2025-2, $253MM, 4.8% Lenders BMO Harris (Agent), Banc of California, Texas Capital, EverBank, First Horizon Wells Fargo Bank - $125MM BMO Capital Markets Corp. - $125MM JPMorgan Chase Bank - $100MM Regions Bank - $75MM Qualified institutional investor Qualified institutional investors Collateral Allows for funding of all products and APRs All facilities allow for funding of all products with ≤ 36% APR; BMO facility also allows for funding of >36% APR loans Allows for the funding of all products, including > 36% APR loans Allows for funding of all products with ≤ 36% APR $125MM, 6.1% (one-month SOFR plus a margin of 2.3%) $125MM, 6.3% (one-month SOFR plus a margin of 2.4%) $100MM, 6.2% (the commercial paper rate plus a margin of 2.1%) $75MM, 5.9% (one-month SOFR plus a margin of 2.1%) (1) Debt balance as of 12/31/2025
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Consolidated Income Statements 18 $ in thousands 4Q 25 4Q 24 2025 2024 2023 2022 Revenue Interest and fee income 153,029$ 138,246$ 578,949$ 528,894$ 489,698$ 450,854$ Insurance income, net 11,386 11,792 45,573 40,695 44,529 43,502 Other income 5,287 4,794 21,076 18,914 17,172 12,831 Total revenue 169,702 154,832 645,598 588,503 551,399 507,187 Expenses Provision for credit losses 66,379 57,626 245,432 212,200 220,034 185,115 Personnel 40,394 40,549 159,637 153,789 156,872 141,243 Occupancy 7,227 6,748 28,204 25,823 25,029 23,809 Marketing 3,874 4,777 18,551 19,006 15,774 15,378 Other 13,024 12,572 51,183 49,080 45,444 42,098 Total general and administrative 64,519 64,646 257,575 247,698 243,119 222,528 Interest expense 22,646 19,805 84,814 74,530 67,463 34,223 Income before income taxes 16,158 12,755 57,777 54,075 20,783 65,321 Income taxes 3,249 2,841 13,365 12,848 4,825 14,097 Net income 12,909$ 9,914$ 44,412$ 41,227$ 15,958$ 51,224$
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Consolidated Balance Sheets 19 $ in thousands 2025 2024 2023 2022 2021 Cash 3,823$ 3,951$ 4,509$ 3,873$ 10,507$ Net finance receivables 2,140,199 1,892,535 1,771,410 1,699,393 1,426,257 Unearned insurance premiums (52,896) (48,068) (47,892) (51,008) (47,837) Allowance for credit losses (220,900) (199,500) (187,400) (178,800) (159,300) Net finance receivables, less unearned insurance premiums and allowance for credit losses 1,866,403 1,644,967 1,536,118 1,469,585 1,219,120 Restricted cash 94,174 131,684 124,164 127,926 138,682 Lease assets 43,828 38,442 34,303 34,521 28,721 Intangible assets 31,781 24,524 15,846 12,122 9,517 Restricted available-for-sale investments 24,211 21,712 22,740 20,416 - Property and equipment 13,156 13,677 13,787 14,526 12,938 Deferred tax assets, net - 9,286 13,641 13,810 18,420 Other assets 26,554 20,866 29,419 28,208 21,757 Total assets 2,103,930$ 1,909,109$ 1,794,527$ 1,724,987$ 1,459,662$ Debt 1,650,764$ 1,478,336$ 1,399,814$ 1,355,359$ 1,107,953$ Unamortized debt issuance costs (8,591) (6,338) (4,578) (9,512) (11,010) Net debt 1,642,173 1,471,998 1,395,236 1,345,847 1,096,943 Lease liabilities 45,968 40,579 36,576 36,712 30,700 Deferred tax liabilities, net 3,345 - - - - Other liabilities 39,352 39,454 40,442 33,795 49,283 Total liabilities 1,730,838 1,552,031 1,472,254 1,416,354 1,176,926 Common stock 1,517 1,492 1,457 1,433 1,416 Additional paid-in capital 138,666 130,725 121,752 112,384 104,745 Retained earnings 410,721 378,482 349,579 345,545 306,105 Accumulated other comprehensive income (loss) (2) 62 (372) (586) - Treasury stock (177,810) (153,683) (150,143) (150,143) (129,530) Total stockholders' equity 373,092 357,078 322,273 308,633 282,736 Total liabilities and stockholders' equity 2,103,930$ 1,909,109$ 1,794,527$ 1,724,987$ 1,459,662$
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Non-GAAP Financial Measures In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), this presentation contains certain non-GAAP financial measures. The Company’s management utilizes non-GAAP measures as additional metrics to aid in, and enhance, its understanding of the Company’s financial results. The Company believes that these non-GAAP measures provide useful information by excluding certain material items that may not be indicative of our operating results. As a result, the Company believes that the non-GAAP measures that it has presented will aid in the evaluation of the operating performance of the business. Total capital and capital return, capital generation, and capital generation as a % of average stockholders' equity are non-GAAP measures to include stock repurchases and dividends returned to stockholders with total capital. Management uses these measures to evaluate the Company's ability to generate capital to return to stockholders, reinvest in strategic initiatives, and evaluate its capacity to absorb losses. The Company also believes that these capital and absorption measures provide useful information to users of the Company’s financial statements in the evaluation of its ability to generate capital to return to stockholders, reinvest in strategic initiatives, and evaluate its capacity to absorb losses. Tangible equity and the funded debt-to-tangible equity ratio are non-GAAP measures that adjust GAAP measures to exclude intangible assets. Management uses these equity measures to evaluate and manage the Company’s capital and leverage position. The Company also believes that these equity measures are commonly used in the financial services industry and provide useful information to users of the Company’s financial statements in the evaluation of its capital and leverage position. The Company believes that the aforementioned non-GAAP measures will aid users of its financial statements in the evaluation of its operating performance. This 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, the Company’s non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies. The following tables provide reconciliations of GAAP measures to non-GAAP measures. 20
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Non-GAAP Financial Measures (Cont’d) 21 $ in millions 2020 2021 2022 2023 2024 2025 Beginning stockholders' equity 256.9$ 272.1$ 282.7$ 308.6$ 322.3$ 357.1$ Ending stockholders' equity 272.1 282.7 308.6 322.3 357.1 373.1 Change in stockholders' equity 15.3 10.6 25.9 13.6 34.8 16.0 Beginning allowance for credit losses 122.3 150.0 159.3 178.8 187.4 199.5 Ending allowance for credit losses 150.0 159.3 178.8 187.4 199.5 220.9 Change in allowance for credit losses 27.7 9.3 19.5 8.6 12.1 21.4 Change in stockholders' equity 15.3 10.6 25.9 13.6 34.8 16.0 Change in allowance for credit losses 27.7 9.3 19.5 8.6 12.1 21.4 Total change in capital 43.0 19.9 45.4 22.2 46.9 37.4 Total change in capital 43.0 19.9 45.4 22.2 46.9 37.4 Dividends to stockholders 2.3 9.9 11.8 11.9 12.3 12.2 Stock repurchased 12.0 67.4 20.6 - 3.5 24.1 Capital generation (non-GAAP) 57.3$ 97.3$ 77.8$ 34.2$ 62.8$ 73.7$
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Non-GAAP Financial Measures (Cont’d) 22 $ in thousands 2025 2024 2023 2022 2021 Debt 1,650,764$ 1,478,336$ 1,399,814$ 1,355,359$ 1,107,953$ Total stockholders' equity 373,092 357,078 322,273 308,633 282,736 Less: intangible assets 31,781 24,524 15,846 12,122 9,517 Tangible equity (non-GAAP) 341,311$ 332,554$ 306,427$ 296,511$ 273,219$ Funded debt-to-equity ratio 4.4 4.1 4.3 4.4 3.9 Funded debt-to-tangible equity ratio (non-GAAP) 4.8 4.4 4.6 4.6 4.1
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Glossary 23 • ACL – Allowance for Credit Losses • Allowance for credit loss rate (ACL rate) – allowance for credit losses as a percentage of ending net finance receivables • ANR – average net finance receivables • Bps – basis points • Capital generation – the year-to-date change in total capital and capital return from the prior year-end • Cost of funds – annualized interest expense as a percentage of average net finance receivables • Cumulative capital return – dividend and common stock repurchase activity that has occurred since December 31, 2019 • Debt balance – the balance for each respective debt agreement, composed of principal balance and accrued interest • Dividend yield – annualized dividends per share divided by the closing share price as of the last day of the quarter • Delinquency rate (DQ %) – delinquent loans outstanding as a percentage of ending net finance receivables • ENR – ending net finance receivables • Funded debt ratio – total debt divided by total assets • Interest and fee yield – annualized interest and fee income as a percentage of average net finance receivables • Net credit loss rate – annualized net credit losses as a percentage of average net finance receivables • Operating expense ratio – annualized general and administrative expenses as a percentage of average net finance receivables • Return on assets (ROA) – annualized net income as a percentage of average total assets • Return on equity (ROE) – annualized net income as a percentage of average stockholders’ equity • Same store – comparison of branches with a comparable branch base; the comparable branch base includes those branches open for at least 1 year • Total capital – stockholders’ equity plus allowance for credit losses • Total revenue yield – annualized total revenue as a percentage of average net finance receivables • WAC – weighted-average coupon • YoY – year-over-year