Regional Management Corp.
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 1, 2025
RM$36.25-3.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0000950170-25-062837
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0000950170-25-101457
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 124 current paragraphs.
54 unchanged; 42 reworded; 18 added; 10 removed; 0 previous and 10 current paragraphs rearranged.
Tables are not compared: 12 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
Net Income. Net income increased $1.7 million, or 20.1%, to $10.1 million during the three months ended June 30, 2025, from $8.4 million during the prior-year period. The change in net income is explained in greater detail below.
Current report
Interest and Fee Income. Interest and fee income increased $12.8 million, or 10.0%, to $140.7 million during the three months ended June 30, 2025, from $127.9 million during the prior-year period. The increase was primarily due to a 9.4% increase in average net finance receivables and a 0.1% increase in annualized average yield. The increase in yield was primarily due to improved credit performance.
Current report
Earned premiums increased by $0.4 million, and claims, reserves, and certain direct expenses decreased by $0.6 million, in each case compared to the prior-year period. The increase in insurance premiums was primarily due to an increase in personal property insurance premiums. The decrease in claims, reserves, and direct expenses was primarily due to a release in personal property insurance reserves related to hurricane activity in the prior-year.
Current report
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 June 30, 2025 and 2024, the allowance for credit losses included a build of $3.7 million and a release of $1.7 million, respectively. The allowance for credit losses as a percentage of net finance receivables decreased to 10.3% as of June 30, 2025, from 10.5% as of June 30, 2024 from a release of remaining hurricane reserves as related losses impacted net credit losses in the current quarter.
Current report
Net Credit Losses. Net credit losses increased $1.4 million, or 2.5%, to $56.9 million during the three months ended June 30, 2025, from $55.5 million during the prior-year period. The net credit loss rate was 11.9% during the three months ended June 30, 2025, compared to 12.7% during the prior-year period. This 80 basis point improvement was due to credit tightening and effective portfolio management.
Current report
Delinquency Performance. Our delinquency rate improved to 6.6% as of June 30, 2025, from 6.9% during the prior-year period, reflecting the overall improved credit quality and performance of our portfolio.
Current report
Marketing. Marketing expenses increased $0.2 million, or 4.6%, to $5.1 million during the three months ended June 30, 2025, from $4.8 million during the prior-year period due to increased digital marketing and direct mail activity of $0.2 million to support growth in our legacy and new branch markets.
Current report
Other Expenses. Other expenses increased $0.3 million, or 2.8%, to $12.4 million during the three months ended June 30, 2025, from $12.1 million during the prior-year period. 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.
Current report
Operating Expense Ratio. Our operating expense ratio decreased by 0.6% to 13.2% during the three months ended June 30, 2025, from 13.8% during the prior-year period.
Current report
Income Taxes. Income taxes increased $0.6 million, or 20.4%, to $3.3 million during the three months ended June 30, 2025, from $2.8 million during the prior-year period. The increase was primarily due to a $2.3 million increase in income before income taxes compared to the prior-year period. Our effective tax rates were 24.8% and 24.7% for the three months ended June 30, 2025 and 2024, respectively.
Current report
Comparison of the Six Months Ended June 30, 2025, versus the Six Months Ended June 30, 2024
Current report
Net Income. Net income decreased $6.5 million, or 27.5%, to $17.1 million during the six months ended June 30, 2025, from $23.7 million during the prior-year period. The change in net income is explained in greater detail below.
Current report
Revenue. Total revenue increased $23.1 million, or 8.0%, to $310.4 million during the six months ended June 30, 2025, from $287.3 million during the prior-year period. The components of revenue are explained in greater detail below.
Current report
Other Income. Other income increased $1.2 million, or 13.5%, to $10.4 million during the six months ended June 30, 2025, from $9.1 million during the prior-year period, primarily due to an increase in sales of our club membership products of $1.0 million, higher late charges of $0.6 million associated with portfolio growth and higher investment income from securities of $0.1 million, partially offset by a decrease in interest income of $0.6 million from lower restricted cash requirements.
Current report
Provision for Credit Losses. Our provision for credit losses increased $18.4 million, or 18.3%, to $118.6 million during the six months ended June 30, 2025, from $100.2 million during the prior-year period. The increase was due to an increase in net credit losses of $13.1 million and the change in provision expense of $5.3 million, in each case compared to the prior-year period. The increase in the provision for credit losses is explained in greater detail below.
Current report
Delinquency Performance. Our delinquency rate improved to 6.6% as of June 30, 2025, from 6.9% during the prior-year period, reflecting the overall improved credit quality and performance of our portfolio due to credit tightening and effective portfolio management.
Current report
General and Administrative Expenses. Our general and administrative expenses increased $8.4 million, or 7.0%, to $129.0 million during the six months ended June 30, 2025, from $120.6 million during the prior-year period. The absolute dollar increase in general and administrative expenses is explained in greater detail below.
Current report
Operating Expense Ratio. Our operating expense ratio decreased by 0.2% to 13.6% during the six months ended June 30, 2025, from 13.8% during the prior-year period.
Removed paragraphs (10)
Previous report
Retail Loans – As of March 31, 2025, we had 0.7 thousand retail purchase loans outstanding, representing $0.7 million in net finance receivables.
Previous report
As reinsurer, we maintain restricted reserves comprised of restricted cash and restricted AFS investments for life insurance in an amount determined by the unaffiliated insurance company. As of March 31, 2025, the restricted reserves consisted of $21.2 million of unearned premium reserves and $1.2 million of unpaid claims reserves. The unaffiliated insurance company maintains the reserves for non-life claims.
Previous report
Retail Loans– Retail loans outstanding decreased $2.1 million, or 75.0%, to $0.7 million at March 31, 2025, from $2.8 million at March 31, 2024. We ceased accepting applications for our retail loan product offering as of November 2022 to focus on growing our core loan portfolio.
Previous report
Net Income. Net income decreased $8.2 million, or 53.9%, to $7.0 million during the three months ended March 31, 2025, from $15.2 million during the prior-year period. The decrease was due to an increase in provision for credit losses of $11.6 million, an increase in general and administrative expenses of $5.6 million, and an increase in interest expense of $2.3 million, partially offset by an increase in revenue of $8.7 million and a decrease in income taxes of $2.6 million.
Previous report
Delinquency Performance. Our delinquency rate remained consistent at 7.1% as of both March 31, 2025, and the prior-year period. Our delinquency rate as of March 31, 2025 included an estimated 10 basis point increase related to hurricane activity in the third quarter of 2024 and an estimated 10 basis point increase from growth in our higher-margin small loan portfolio.
Previous report
Operating Expense Ratio. Our operating expense ratio increased by 0.3% to 14.0% during the three months ended March 31, 2025, from 13.7% during the prior-year period. Our operating expense ratio as of March 31, 2025 included an estimated 40 basis point increase related to a change in the pattern of incentive expense timing.
Previous report
(1) In March 2025, we and RMR III exercised the right to make an optional principal repayment in full of RMIT 2020-1, and in connection with such prepayment, the securitization terminated. The restricted cash collections for RMIT 2020-1 totaled $273 thousand as of March 31, 2025.
Previous report
Regulatory Developments.
Previous report
On March 7, 2023, the CFPB provided us with Notice seeking to establish supervisory authority over us pursuant to section 1024(a)(1)(C) of the Consumer Financial Protection Act of 2010. Under that provision, the CFPB may establish supervisory authority over any non-bank covered person that it has reasonable cause to determine is engaging, or has engaged, in conduct that poses risks to consumers with regard to the offering or provision of consumer financial products or services. We responded to the Notice by voluntarily consenting to the CFPB’s supervisory authority and entering into the Consent Agreement. Pursuant to the Consent Agreement and related CFPB order, the CFPB will have supervisory authority over us for a period of two years ending January 8, 2026. The Consent Agreement does not constitute an admission by us that we are a nonbank covered person who is engaging, or has engaged, in conduct that poses risks to consumers with regard to the offering or provision of consumer financial products or services. While the CFPB’s supervisory authority over us extends through January 8, 2026, in April 2025, the CFPB closed its examination of us without any adverse finding. See “Government Regulation” in Part I, Item 1 “Business” and “Risks Related to Regulation and Legal Proceedings” in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated by Part II, Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q, for a further discussion of the regulation and regulatory risks to which we are subject.
Previous report
On March 6, 2024, the SEC adopted a final rule to require registrants to disclose certain climate-related information in their registration statements and annual reports. On April 4, 2024, the SEC issued an order staying the effectiveness of the final rule pending completion of the judicial review of consolidated challenges to the rule by the U.S. Court of Appeals for the Eighth Circuit. On February 11, 2025, the Acting Chairman of the SEC directed the SEC staff to notify the U.S. Court of Appeals for the Eighth Circuit of the change in the composition of the SEC and other changed circumstances and request that the court not schedule the case for oral argument to provide time for the SEC to deliberate and determine the appropriate next steps. On March 27, 2025, the SEC informed the U.S. Court of Appeals for the Eighth Circuit that it was withdrawing its defense of the matter and stated that SEC counsel are no longer authorized to advance arguments in the brief that the SEC had filed.
Reworded paragraphs (42)
Previous wording
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, 2024 (which was filed with the SEC on February 21, 2025) 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.
Current wording
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, 2024 (which was filed with the SEC on February 21, 2025), our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2025 (which was filed with the SEC on May 2, 2025), 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.
Previous wording
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 March 31, 2025, we operate under the name “Regional Finance” online and in 353 branch locations in 19 states across the United States, serving 575,000 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 source our loans through our omni-channel platform, which includes our branches, centrally-managed direct mail campaigns, digital partners, and our consumer website. 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.
Current wording
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 June 30, 2025, we operate under the name “Regional Finance” online and in 352 branch locations in 19 states across the United States, serving 579,100 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 source our loans through our omni-channel platform, which includes our branches, centrally-managed direct mail campaigns, digital partners, and our consumer website. 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.
Previous wording
Large Loans (>$2,500) – As of March 31, 2025, we had 262.1 thousand large installment loans outstanding, representing $1.3 billion in net finance receivables. This included 71.8 thousand large loan convenience checks, representing $204.0 million in net finance receivables.
Current wording
Large Loans (>$2,500) – As of June 30, 2025, we had 268.5 thousand large installment loans outstanding, representing $1.4 billion in net finance receivables. This included 72.8 thousand large loan convenience checks, representing $209.6 million in net finance receivables.
Previous wording
Small Loans (≤$2,500) – As of March 31, 2025, we had 312.2 thousand small installment loans outstanding, representing $543.8 million in net finance receivables. This included 168.6 thousand small loan convenience checks, representing $261.0 million in net finance receivables.
Current wording
Small Loans (≤$2,500) – As of June 30, 2025, we had 310.7 thousand small installment loans outstanding, representing $547.0 million in net finance receivables. This included 167.1 thousand small loan convenience checks, representing $259.9 million in net finance receivables.
Previous wording
Large and small installment loans are our core products and will be the drivers of future growth. We ceased accepting applications for our retail loan product offering in November 2022 to focus on growing our core loan portfolio. We continue to own and service our existing portfolio of retail 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 direct loan products.
Current wording
Large and small installment loans are our core products and will be the drivers of future growth. 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 direct loan products.
Previous wording
We continue to execute our barbell strategy of growth in our higher-margin loan portfolio while balancing the associated risk with growth in our high-quality, auto-secured loan portfolio. Our portfolio of loans with an annual percentage rate greater than 36% grew by $59.1 million, or 20.6%, year-over-year, while our auto-secured loan portfolio grew by $59.0 million, or 37.0%, year-over-year.
Current wording
We continue to execute our barbell strategy of growth in our higher-margin loan portfolio while balancing the associated risk with growth in our high-quality, auto-secured loan portfolio. Our portfolio of loans with an annual percentage rate greater than 36% grew by $49.8 million to 18.1% of the portfolio, while our auto-secured loan portfolio grew by $66.2 million to 12.5% of the portfolio.
Previous wording
Our allowance for credit losses was 10.5% of net finance receivables as of March 31, 2025. Going forward, macroeconomic conditions may necessitate changes to the macroeconomic assumptions within our forecast and to our credit loss performance outlook, either of which could lead to further changes in our allowance for credit losses, reserve rate, and provision for credit losses expense.
Current wording
Our allowance for credit losses was 10.3% of net finance receivables as of June 30, 2025. Going forward, macroeconomic conditions may necessitate changes to the macroeconomic assumptions within our forecast and to our credit loss performance outlook, either of which could lead to further changes in our allowance for credit losses, reserve rate, and provision for credit losses expense.
Previous wording
We have proactively diversified our funding over the past few years and continue to maintain a strong liquidity profile. As of March 31, 2025, we had $129.3 million of available liquidity, comprised of unrestricted cash on hand and immediate availability to draw down cash from our revolving credit facilities. In addition, we had $640.7 million of unused capacity on our revolving credit facilities (subject to the borrowing base) as of March 31, 2025. We believe our liquidity position provides substantial runway to support the fundamental operations of our business and to fund future growth.
Current wording
We have proactively diversified our funding over the past few years and continue to maintain a strong liquidity profile. As of June 30, 2025, we had $121.6 million of available liquidity, comprised of unrestricted cash on hand and immediate availability to draw down cash from our revolving credit facilities. In addition, we had $533.8 million of unused capacity on our revolving credit facilities (subject to the borrowing base) as of June 30, 2025. We believe our liquidity position provides substantial runway to support the fundamental operations of our business and to fund future growth.
Previous wording
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 March 31, 2025, representing 90% of our total debt.
Current wording
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 June 30, 2025, representing 84% of our total debt.
Previous wording
Other Income. Our other income consists primarily of late charges assessed on customers who fail to make a payment within a specified number of days following the due date of the payment. In addition, interest income from restricted cash, commissions earned from the sale of club membership products, and investment income from restricted AFS securities are included in other income.
Current wording
Other Income. Our other income consists of 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.
Previous wording
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.”
Current wording
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.
Previous wording
Large Loans (>$2,500)– Large loans outstanding increased by $95.2 million, or 7.6%, to over $1.3 billion as of the periods ending March 31, 2025, compared to the period ended March 31, 2024. The increase was due to growth in our auto-secured loan portfolio, the growth of receivables in branches opened during 2024 and 2025, and the transition of small loan customers to large loans.
Current wording
Large Loans (>$2,500)– Large loans outstanding increased by $147.3 million, or 11.6%, to over $1.4 billion as of the period ending June 30, 2025, compared to the period ended June 30, 2024. The increase was due to growth in our auto-secured loan portfolio, the growth of receivables in branches opened during 2024 and 2025, and the transition of small loan customers to large loans.
Previous wording
Small Loans (≤$2,500)– Small loans outstanding increased by $53.0 million, or 10.8%, to $543.8 million at March 31, 2025, from $490.8 million at March 31, 2024. The increase was due to marketing, growth in our higher-margin loan portfolio, and growth of receivables in branches opened during 2024 and 2025, partially offset by the transition of small loan customers to large loans.
Current wording
Small Loans (≤$2,500)– Small loans outstanding increased by $39.3 million, or 7.7%, to $547.0 million at June 30, 2025, from $507.7 million at June 30, 2024. The increase was due to marketing, growth in our higher-margin loan portfolio, and growth of receivables in branches opened during 2024 and 2025, partially offset by the transition of small loan customers to large loans.
Previous wording
Revenue. Total revenue increased $8.7 million, or 6.0%, to $153.0 million during the three months ended March 31, 2025, from $144.3 million during the prior-year period. The components of revenue are explained in greater detail below.
Current wording
Revenue. Total revenue increased $14.4 million, or 10.1%, to $157.4 million during the three months ended June 30, 2025, from $143.0 million during the prior-year period. The components of revenue are explained in greater detail below.
Previous wording
Total originations increased to $392.1 million during the three months ended March 31, 2025, from $326.4 million during the prior-year period. The following table represents the principal balance of loans originated and refinanced:
Current wording
Total originations increased to $510.3 million during the three months ended June 30, 2025, from $426.1 million during the prior-year period. The following table represents the principal balance of loans originated and refinanced:
Previous wording
Insurance Income, Net. Insurance income, net increased $0.3 million, or 2.9% to $11.3 million during the three months ended March 31, 2025, from $11.0 million during the prior-year period. During both the three months ended March 31, 2025 and 2024, personal property insurance premiums represented the largest component of aggregate earned insurance premiums. During both the three months ended March 31, 2025 and 2024, life insurance claims expense represented the largest component of direct insurance expenses.
Current wording
Insurance Income, Net. Insurance income, net increased $1.0 million, or 9.4% to $11.5 million during the three months ended June 30, 2025, from $10.5 million during the prior-year period. During both the three months ended June 30, 2025 and 2024, personal property insurance premiums represented the largest component of aggregate earned insurance premiums. During both the three months ended June 30, 2025 and 2024, life insurance claims expense represented the largest component of direct insurance expenses.
Previous wording
Other Income. Other income increased $0.6 million, or 13.3%, to $5.1 million during the three months ended March 31, 2025, from $4.5 million during the prior-year period, primarily due to higher late charges of $0.4 million associated with portfolio growth and an increase in sales of our club membership products of $0.3 million.
Current wording
Other Income. Other income increased $0.6 million, or 13.6%, to $5.2 million during the three months ended June 30, 2025, from $4.6 million during the prior-year period, primarily due to an increase in sales of our club membership products of $0.6 million.
Previous wording
Provision for Credit Losses. Our provision for credit losses increased $11.6 million, or 24.9%, to $58.0 million during the three months ended March 31, 2025, from $46.4 million during the prior-year period. The increase was due to an increase in net credit losses of $11.7 million, partially offset by the change in provision expense of $0.1 million, in each case compared to the prior-year period. The increase in the provision for credit losses is explained in greater detail below.
Current wording
Provision for Credit Losses. Our provision for credit losses increased $6.8 million, or 12.6%, to $60.6 million during the three months ended June 30, 2025, from $53.8 million during the prior-year period. The increase was due to an increase in net credit losses of $1.4 million and the change in provision expense of $5.4 million, in each case compared to the prior-year period. The increase in the provision for credit losses is explained in greater detail below.
Previous wording
General and Administrative Expenses. Our general and administrative expenses increased $5.6 million, or 9.3%, to $66.0 million during the three months ended March 31, 2025, from $60.4 million during the prior-year period. The absolute dollar increase in general and administrative expenses is explained in greater detail below.
Current wording
General and Administrative Expenses. Our general and administrative expenses increased $2.8 million, or 4.7%, to $62.9 million during the three months ended June 30, 2025, from $60.1 million during the prior-year period. The absolute dollar increase in general and administrative expenses is explained in greater detail below.
Previous wording
Occupancy. Occupancy expenses increased $0.5 million, or 8.3%, to $6.9 million during the three months ended March 31, 2025, from $6.4 million during the prior-year period primarily due to increased rent expense of $0.4 million, inclusive of rent expenses associated with opening 17 new branches since the prior-year period.
Current wording
Occupancy. Occupancy expenses increased $0.8 million, or 12.4%, to $6.9 million during the three months ended June 30, 2025, from $6.1 million during the prior-year period primarily due to increased rent expense of $0.6 million, inclusive of expenses associated with opening 17 new branches since the prior-year period.
Previous wording
Interest Expense. Interest expense increased $2.3 million, or 13.0%, to $19.8 million during the three months ended March 31, 2025, from $17.5 million during the prior-year period. The increase was primarily due to an increase in our cost of funds as well as an increase in the average balance of our debt facilities. Our cost of funds increased 0.2% to 4.2% during the three months ended March 31, 2025, from 4.0% during the prior-year period. The average balance of our debt facilities increased to $1.5 billion during the three months ended March 31, 2025, from $1.4 billion during the prior-year period.
Current wording
Interest Expense. Interest expense increased $2.6 million, or 14.3%, to $20.4 million during the three months ended June 30, 2025, from $17.9 million during the prior-year period. The increase was primarily due to an increase in our cost of funds as well as an increase in the average balance of our debt facilities. Our cost of funds increased 0.2% to 4.2% during the three months ended June 30, 2025, from 4.0% during the prior-year period. The average balance of our debt facilities increased to $1.5 billion during the three months ended June 30, 2025, from $1.4 billion during the prior-year period.
Previous wording
Interest and Fee Income. Interest and fee income increased $7.7 million, or 6.0%, to $136.6 million during the three months ended March 31, 2025, from $128.8 million during the prior-year period. The increase was primarily due to a 7.4% increase in average net finance receivables, partially offset by a 0.4% decrease in annualized average yield. The decrease in yield was primarily due to the estimated 50 basis point benefit in the prior-year period related to the fourth quarter 2023 loan sale. The three months ended March 31, 2024 included reductions in revenue reversals of an estimated $1.7 million attributable to the fourth quarter 2023 loan sale.
Current wording
Interest and Fee Income. Interest and fee income increased $20.5 million, or 8.0%, to $277.2 million during the six months ended June 30, 2025, from $256.7 million during the prior-year period. The increase was primarily due to an 8.4% increase in average net finance receivables. Annualized average yield decreased by 0.1% primarily due to the estimated 30 basis point benefit in the prior-year period related to the fourth quarter 2023 loan sale, partially offset by improved credit performance. The six months ended June 30, 2024 included reductions in revenue reversals of an estimated $1.7 million attributable to the fourth quarter 2023 loan sale.
Previous wording
Earned premiums decreased by $0.1 million, and claims, reserves, and certain direct expenses decreased by $0.5 million, in each case compared to the prior-year period. The decrease in both insurance premiums and claims, reserves, and direct expenses was primarily due to our strategic shifts in product and geographic mix which resulted in fewer active policies.
Current wording
Earned premiums increased by $0.2 million, and claims, reserves, and certain direct expenses decreased by $1.1 million, in each case compared to the prior-year period. The increase in insurance premiums was primarily due to increases in personal property insurance premiums and life insurance premiums. The decrease in claims, reserves, and direct expenses was primarily due to a release in personal property insurance reserves related to hurricane activity in the prior-year.
Previous wording
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 March 31, 2025 and 2024, the allowance for credit losses included releases of $0.4 million and $0.3 million, respectively. The allowance for credit losses as a percentage of net finance receivables decreased to 10.5% as of March 31, 2025, from 10.7% as of March 31, 2024 due to changes in estimated future macroeconomic impacts on credit losses.
Current wording
Allowance for Credit Losses. We evaluate delinquency and losses in each of our loan products in establishing the allowance for credit losses. During the six months ended June 30, 2025 and 2024, the allowance for credit losses included a build of $3.3 million and a release of $2.0 million, respectively. The allowance for credit losses as a percentage of net finance receivables decreased to 10.3% as of June 30, 2025, from 10.5% as of June 30, 2024 due to a release of remaining hurricane reserves as related losses impacted net credit losses in the current year.
Previous wording
Net Credit Losses. Net credit losses increased $11.7 million, or 25.0%, to $58.4 million during the three months ended March 31, 2025, from $46.7 million during the prior-year period. Our net credit losses during the prior-year period were inclusive of an estimated $12.2 million benefit from accelerated charge-offs in the fourth quarter of 2023 attributable to the fourth quarter 2023 loan sale. The net credit loss rate was 12.4% during the three months ended March 31, 2025, compared to 10.6% during the prior-year period. Our net credit loss rate during the three months ended March 31, 2025 was inclusive of a 30 basis point increase from our higher margin portfolio, and during the three months ended March 31, 2024 it was inclusive of a 270 basis point decrease related to the fourth quarter 2023 loan sale.
Current wording
Net Credit Losses. Net credit losses increased $13.1 million, or 12.8%, to $115.3 million during the six months ended June 30, 2025, from $102.2 million during the prior-year period. Our net credit losses during the prior-year period were inclusive of an estimated $12.2 million benefit from accelerated charge-offs in the fourth quarter of 2023 attributable to the fourth quarter 2023 loan sale. The net credit loss rate was 12.1% during the six months ended June 30, 2025, compared to 11.7% during the prior-year period. Our net credit loss ratio during the six months ended June 30, 2024 was inclusive of an estimated 130 basis point benefit related to the fourth quarter 2023 loan sale.
Previous wording
Personnel. The largest component of general and administrative expenses was personnel expense, which increased $3.3 million, or 8.8%, to $41.1 million during the three months ended March 31, 2025, from $37.8 million during the prior-year period. The increase was driven by an increase in incentive costs of $1.9 million ($1.7 million due to a change in expense timing) and increased labor costs of $1.7 million partially related to opening 17 new branches since the prior-year period. This increase was partially offset by higher capitalized loan origination costs, which reduce personnel expenses, of $0.6 million.
Current wording
Personnel. The largest component of general and administrative expenses was personnel expense, which increased $4.8 million, or 6.4%, to $79.7 million during the six months ended June 30, 2025, from $74.9 million during the prior-year period. The increase was primarily driven by an increase in labor costs of $3.8 million, including staffing 17 new branches since the prior-year period, and increased incentive costs of $1.9 million due to a change in expense timing. This increase was partially offset by higher capitalized loan origination costs, which reduce personnel expenses, of $1.3 million.
Previous wording
Marketing. Marketing expenses increased $1.1 million, or 25.3%, to $5.4 million during the three months ended March 31, 2025, from $4.3 million during the prior-year period due to increased activity in our direct mail campaigns of $0.6 million to support growth in our legacy markets and $0.5 million to support our 17 new branches opened since the prior-year period.
Current wording
Marketing. Marketing expenses increased $1.3 million, or 14.4%, to $10.5 million during the six months ended June 30, 2025, from $9.2 million during the prior-year period due to increased activity in our direct mail campaigns of $1.1 million to support growth in our legacy and new branch markets, and increased digital marketing activity of $0.2 million.
Previous wording
Other Expenses. Other expenses increased $0.7 million, or 5.5%, to $12.6 million during the three months ended March 31, 2025, from $11.9 million during the prior-year period. The increase was due to increased collection expenses of $0.4 million and increased credit bureau fees of $0.3 million.
Current wording
Other Expenses. Other expenses increased $1.0 million, or 4.1%, to $25.0 million during the six months ended June 30, 2025, from $24.0 million during the prior-year period. The increase was primarily due to increased collection expenses of $0.5 million and increased credit bureau fees of $0.4 million.
Previous wording
Income Taxes. Income taxes decreased $2.6 million, or 54.4%, to $2.2 million during the three months ended March 31, 2025, from $4.7 million during the prior-year period. The decrease was primarily due to a $10.8 million decrease in income before income taxes compared to the prior-year period. Our effective tax rates were 23.5% and 23.7% for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Income Taxes. Income taxes decreased $2.0 million, or 26.7%, to $5.5 million during the six months ended June 30, 2025, from $7.5 million during the prior-year period. The decrease was primarily due to a $8.5 million decrease in income before income taxes compared to the prior-year period. Our effective tax rates were 24.3% and 24.1% for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
Our primary cash needs relate to the funding of our lending activities 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 March 31, 2025, we had a funded debt-to-equity ratio of 4.1 to 1.0 and a stockholders’ equity ratio of 18.8%.
Current wording
Our primary cash needs relate to the funding of our lending activities 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 June 30, 2025, our funded debt-to-equity ratio was 4.2 to 1.0 and stockholders’ equity ratio was 18.5%, compared to 4.1 to 1.0 and 18.7%, respectively, as of December 31, 2024.
Previous wording
Cash and cash equivalents increased to $4.2 million as of March 31, 2025, from $4.0 million as of the prior year-end. We had immediate availability to draw down cash from our revolving credit facilities of $125.2 million and $132.9 million as of March 31, 2025 and the prior year-end, respectively. Our unused capacity on our revolving credit facilities (subject to the borrowing base) was $640.7 million and $466.2 million as of March 31, 2025, and the prior year-end, respectively. Our debt balance was $1.5 billion for both March 31, 2025 and the prior year-end.
Current wording
Cash and cash equivalents increased to $4.3 million as of June 30, 2025, from $4.0 million as of the prior year-end. We had immediate availability to draw down cash from our revolving credit facilities of $117.3 million and $132.9 million as of June 30, 2025 and the prior year-end, respectively. Our unused capacity on our revolving credit facilities (subject to the borrowing base) was $533.8 million and $466.2 million as of June 30, 2025, and the prior year-end, respectively. Our debt balance was $1.5 billion for both June 30, 2025 and the prior year-end.
Previous wording
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. In addition, as of March 31, 2025 the revolving period maturities of our securitizations and warehouse credit facilities (each as described below within “Financing Arrangements and Restricted Cash Reserve Accounts”) ranged from May 2025 to May 2027. As of March 31, 2025, we did not exercise our right to redeem the notes of our RMIT 2021-1 and RMIT 2022-1 securitizations, for which the revolving periods ended in February 2024 and February 2025, respectively. 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.
Current wording
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 June 30, 2025 the revolving period maturities of our securitizations and warehouse credit facilities (each as described below within “Financing Arrangements and Restricted Cash Reserve Accounts”) ranged from May 2026 to May 2027, with the exception of securitizations RMIT 2021-1 and RMIT 2022-1, for which the revolving periods ended in February 2024 and February 2025, respectively. We had not exercised our right to redeem the notes of either of these two securitizations as of June 30, 2025. 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.
Previous wording
The Board may in its discretion declare and pay cash dividends on our common stock. The following table sets forth the dividends declared and paid for the three months ended March 31, 2025:
Current wording
The Board may in its discretion declare and pay cash dividends on our common stock. The following table sets forth the dividends declared and paid for the six months ended June 30, 2025:
Previous wording
The Board declared and paid $3.0 million of cash dividends on our common stock during the three months ended March 31, 2025. 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 quarter.
Current wording
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 quarter.
Previous wording
In December 2024, we announced that the Board had authorized a $30.0 million stock repurchase program. The authorization was effective immediately and extends through December 31, 2026. As of March 31, 2025, we had repurchased 0.3 million shares of common stock at a total cost of $10.1 million, including commissions and estimated excise taxes.
Current wording
In December 2024, we announced that the Board had authorized a $30.0 million stock repurchase program. The authorization was effective immediately and extends through December 31, 2026. As of June 30, 2025, we had repurchased 0.5 million shares of common stock under this plan at a total cost of $15.1 million, including commissions and estimated excise taxes.
Previous wording
Operating Activities. Net cash provided by operating activities during the three months ended March 31, 2025 was $63.7 million, compared to $58.5 million during the prior-year period, a net increase of $5.2 million. The increase in net cash provided was primarily due to the growth of our loan portfolio.
Current wording
Operating Activities. Net cash provided by operating activities during the six months ended June 30, 2025 was $142.3 million, compared to $130.0 million during the prior-year period, a net increase of $12.4 million. The increase in net cash provided was primarily due to the growth of our loan portfolio.
Previous wording
Investing Activities. Investing activities consist of originations and repayments of finance receivables, purchases of intangible assets, and purchases of property and equipment for new and existing branches. Net cash used in investing activities during the three months ended March 31, 2025 was $60.3 million, compared to $20.3 million during the prior-year period, a net increase in cash used of $39.9 million. The increase in net cash used was primarily driven by increased originations as we grow our loan portfolio, partially offset by increased repayments of finance receivables.
Current wording
Investing Activities. Investing activities consist of originations and repayments of finance receivables, purchases of intangible assets, and purchases of property and equipment for new and existing branches. Net cash used in investing activities during the six months ended June 30, 2025 was $165.4 million, compared to $84.6 million during the prior-year period, a net increase in cash used of $80.8 million. The increase in net cash used was primarily driven by increased originations as we grow our loan portfolio, partially offset by increased repayments of finance receivables.
Previous wording
Financing Activities. Financing activities consist of borrowings and payments on our outstanding indebtedness. Net cash used in financing activities during the three months ended March 31, 2025 was $12.6 million, compared to $44.4 million during the prior-year period, a decrease in cash used of $31.8 million. The decrease in cash used was primarily due to an increase in the net advances on debt instruments of $41.1 million related to increased originations, partially offset by an increase in the repurchases of common stock of $6.5 million and an increase in payments for debt issuance costs of $2.4 million.
Current wording
Financing Activities. Financing activities consist of borrowings and payments on our outstanding indebtedness. Net cash provided by financing activities during the six months ended June 30, 2025 was $9.4 million, compared to $30.9 million used in financing activities during the prior-year period, a net increase in cash provided of $40.2 million. The net increase in cash provided was primarily due to an increase in the net advances on debt instruments of $52.0 million related to increased originations, partially offset by an increase in the repurchases of common stock of $11.5 million.
Previous wording
As of March 31, 2025, we had five credit facilities outstanding and, from time to time, 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 $107.9 million and $117.1 million as of March 31, 2025 and December 31, 2024, respectively. Our debt arrangements also contain various debt covenants. We were in compliance with all such debt covenants as of March 31, 2025.
Current wording
As of June 30, 2025, 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 $83.6 million and $117.1 million as of June 30, 2025 and December 31, 2024, respectively. Our debt arrangements also contain various debt covenants. We were in compliance with all such debt covenants as of June 30, 2025.
Previous wording
Revolving Credit Facilities. We issued a $265.0 million securitization (RMIT 2025-1) in March 2025 with an effective interest rate of 5.3%. The proceeds were used to pay down higher-rate revolving credit facilities. The following is a summary of our revolving credit facilities as of March 31, 2025:
Current wording
Revolving Credit Facilities. The following is a summary of our revolving credit facilities as of June 30, 2025:
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Current report — wording carried from elsewhere
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.”
Current report — wording carried from elsewhere
Personnel. The largest component of general and administrative expenses was personnel expense, which increased $1.5 million, or 4.0%, to $38.6 million during the three months ended June 30, 2025, from $37.1 million during the prior-year period. The increase was driven by increased labor costs of $2.2 million to support growth, including staffing 17 new branches since the prior-year period. This increase was partially offset by higher capitalized loan origination costs, which reduce personnel expenses, of $0.7 million.
Current report — wording carried from elsewhere
The following table sets forth the average net finance receivables balance and average yield for our loan products:
Current report — wording carried from elsewhere
(1) Annualized interest and fee income as a percentage of average net finance receivables.
Current report — wording carried from elsewhere
Total originations increased to $902.4 million during the six months ended June 30, 2025, from $752.4 million during the prior-year period. The following table represents the principal balance of loans originated and refinanced:
Current report — wording carried from elsewhere
The following table summarizes the components of the increase in interest and fee income:
Current report — wording carried from elsewhere
Insurance Income, Net. Insurance income, net increased $1.3 million, or 6.1% to $22.8 million during the six months ended June 30, 2025, from $21.5 million during the prior-year period. During both the six months ended June 30, 2025 and 2024, personal property insurance premiums represented the largest component of aggregate earned insurance premiums. During both the six months ended June 30, 2025 and 2024, life insurance claims expense represented the largest component of direct insurance expenses.
Current report — wording carried from elsewhere
The following table summarizes the components of insurance income, net:
Current report — wording carried from elsewhere
Occupancy. Occupancy expenses increased $1.3 million, or 10.3%, to $13.8 million during the six months ended June 30, 2025, from $12.5 million during the prior-year period primarily due to increased rent expense of $1.0 million, inclusive of rent expenses associated with opening 17 new branches since the prior-year period.
Current report — wording carried from elsewhere
Interest Expense. Interest expense increased $4.8 million, or 13.7%, to $40.2 million during the six months ended June 30, 2025, from $35.4 million during the prior-year period. The increase was primarily due to an increase in our cost of funds as well as an increase in the average balance of our debt facilities. Our cost of funds increased 0.2% to 4.2% during the six months ended June 30, 2025, from 4.0% during the prior-year period. The average balance of our debt facilities increased to $1.5 billion during the six months ended June 30, 2025, from $1.4 billion during the prior-year period.