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Regional Management Corp. Announces Second Quarter 2026 Results

businesswire.com

Regional Management Corp. Announces Second Quarter 2026 Results GREENVILLE, S.C.--( BUSINESS WIRE)--Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the second quarter ended June 30, 2026.

“We delivered strong second quarter revenue of $168 million and improved our operating expense ratio by 80 basis points year-over-year to 12.4%, while growing our higher-quality auto-secured portfolio and returning capital to shareholders,” said Lakhbir S. Lamba, President and Chief Executive Officer of Regional Management Corp. “Year-to-date, net income and diluted earnings per share are up 14% and 17%, respectively. At the same time, portfolio growth fell short of our expectations, and our net credit loss rate was modestly above our forecast, driven in part by slower portfolio growth. These results reflect a more competitive environment for customer acquisition and deliberate decisions to tighten underwriting in segments that did not meet our risk-adjusted return hurdles, which weighed on our near-term origination volumes.”

“We are accelerating execution against our strategic priorities, foremost among them our bank partnership,” continued Mr. Lamba. “We have implemented the partnership in Texas, our largest market, and its early results are very promising. We believe this partnership will be transformative to the reach, economics, and returns of our business and can materially change the trajectory of our net income and returns as we move into 2027. We are building from an even stronger foundation, and I am confident that the disciplined decisions we are making today will drive sustainable and profitable growth over the longer term.”

Second Quarter 2026 Highlights

Strategic Highlights

During the second quarter, the company continued to scale its bank partnership program with Column N.A., a nationally chartered bank, through which it has originated more than $65 million in loans since the program’s launch. The company has fully implemented the program for branch originations in Texas, its largest state, and plans to extend it to additional states beginning in the second half of 2026, with substantially all of its branch network expected to operate under the program by the end of 2027. Originating in partnership with a nationally chartered bank enables the company to offer more consistent products and pricing nationwide, accelerates its entry into new states, and broadens the base of customers it can serve, while improving loan-level economics as the program scales. Early origination, margin, and credit results have been encouraging.

In July 2026, the company launched an end-to-end digital lending capability that enables customers to complete the entire loan process online, strengthening its omni-channel operating model and its ability to compete with fintech lenders while its branch network remains at the core of its operations. The company intends to scale the capability in a disciplined manner as it confirms strong credit performance and risk-adjusted returns. The company also entered Florida in May 2026, its 20th state, and accelerated investments across its technology and analytics platform, including a new branch loan origination system, an enhanced machine-learning credit model, and the deployment of artificial intelligence in collections and customer service.

Third Quarter 2026 Dividend

The company’s Board of Directors has declared a dividend of $0.30 per common share for the third quarter of 2026. The dividend will be paid on September 16, 2026 to shareholders of record as of the close of business on August 19, 2026. The declaration and payment of any future dividend is subject to the discretion of the Board of Directors and will depend on a variety of factors, including the company’s financial condition and results of operations.

Liquidity and Capital Resources

As of June 30, 2026, the company had net finance receivables of $2.1 billion and debt of $1.7 billion. The debt consisted of:

As of June 30, 2026, the company’s unused capacity to fund future growth on its revolving credit facilities (subject to the borrowing base) was $442 million, or 56.6%, and the company had available liquidity of $127.9 million, including unrestricted cash on hand and immediate availability to draw down cash from its revolving credit facilities. As of June 30, 2026, the company’s fixed-rate debt as a percentage of total debt was 80%, with a weighted-average coupon of 4.8%.

The company had a funded debt-to-equity ratio of 4.4 to 1.0 and a stockholders’ equity ratio of 17.8%, each as of June 30, 2026. On a non-GAAP basis, the company had a funded debt-to-tangible equity ratio of 4.9 to 1.0, as of June 30, 2026. Please refer to the reconciliations of non-GAAP measures to comparable GAAP measures included at the end of this press release.

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 (877) 407-0752 (toll-free) or (201) 389-0912 (international). Please dial the number 10 minutes prior to the scheduled start time.

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

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

A webcast replay of the call will be available at www.RegionalManagement.com for one year following the call.

About Regional Management Corp.

Regional Management Corp. (NYSE: RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name “Regional Finance” online and in branch locations in 20 states across the United States. Each of its loan products is structured on a fixed-rate, fixed-term basis with fully amortizing equal monthly installment payments, repayable at any time without penalty. Regional Management sources loans through its multiple channel platform, which includes branches, centrally managed direct mail campaigns, digital partners, and its consumer website. For more information, please visit www.RegionalManagement.com.

Forward-Looking Statements

This press release 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 Regional Management Corp.’s expectations or beliefs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlooks or future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. 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 speak only as of the date on which they were made and are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. As a result, actual performance and results may differ materially from those contemplated by these forward-looking statements. Therefore, investors should not place undue reliance on forward-looking 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 Regional Management’s growth strategy, opening new branches as planned, and continuing to expand our lending partnership with Column N.A.; Regional Management’s convenience check strategy; Regional Management’s policies and procedures for underwriting, processing, and servicing loans; Regional Management’s ability to collect on its loan portfolio; Regional Management’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 the effectiveness of Regional Management's custom scorecards; changes in the competitive environment in which Regional Management operates or a decrease in the demand for its products; the geographic concentration of Regional Management’s loan portfolio; the failure of third-party service providers, including those providing information technology products; changes in economic conditions in the markets Regional Management serves, including levels of unemployment and bankruptcies; the ability to achieve successful acquisitions and strategic alliances; the ability to realize the anticipated benefits from our lending partnership with Column N.A.; the ability to make technological improvements as quickly as competitors; security breaches, cyber-attacks, failures in information systems, or fraudulent activity; the development and use of artificial intelligence; the ability to originate loans; reliance on information technology resources and providers, including the 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 Regional Management’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 interpretations 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 ownership of Regional Management’s common stock, including volatility in the market price of shares of Regional Management’s common stock; the timing and amount of future cash dividend payments; and anti-takeover provisions in Regional Management’s charter documents and applicable state law.

The foregoing factors and others are discussed in greater detail in Regional Management’s filings with the Securities and Exchange Commission. Regional Management will not update or revise forward-looking statements to reflect events or circumstances after the date of this press release 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. Regional Management is not responsible for changes made to this document by wire services or Internet services.

Regional Management Corp. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

(dollars in thousands, except per share amounts)

Better (Worse)

Better (Worse)

2Q 26

2Q 25

$

%

YTD 26

YTD 25

$

%

Revenue

Interest and fee income

$

150,278

$

140,695

$

9,583

6.8

%

$

300,574

$

277,248

$

23,326

8.4

%

Insurance income, net

10,976

11,499

(523

)

(4.5

)%

22,786

22,796

(10

)

Other income

6,752

5,248

1,504

28.7

%

11,936

10,365

1,571

15.2

%

Total revenue

168,006

157,442

10,564

6.7

%

335,296

310,409

24,887

8.0

%

Expenses

Provision for credit losses

69,006

60,587

(8,419

)

(13.9

)%

133,874

118,579

(15,295

)

(12.9

)%

Personnel

39,433

38,584

(849

)

(2.2

)%

78,775

79,726

951

1.2

%

Occupancy

7,252

6,911

(341

)

(4.9

)%

14,731

13,817

(914

)

(6.6

)%

Marketing

4,889

5,059

170

3.4

%

9,070

10,465

1,395

13.3

%

Other

13,870

12,391

(1,479

)

(11.9

)%

27,532

24,980

(2,552

)

(10.2

)%

Total general and administrative

65,444

62,945

(2,499

)

(4.0

)%

130,108

128,988

(1,120

)

(0.9

)%

Interest expense

22,993

20,426

(2,567

)

(12.6

)%

45,916

40,197

(5,719

)

(14.2

)%

Income before income taxes

10,563

13,484

(2,921

)

(21.7

)%

25,398

22,645

2,753

12.2

%

Income taxes

2,410

3,344

934

27.9

%

5,844

5,498

(346

)

(6.3

)%

Net income

$

8,153

$

10,140

$

(1,987

)

(19.6

)%

$

19,554

$

17,147

$

2,407

14.0

%

Net income per common share:

Basic

$

0.91

$

1.07

$

(0.16

)

(15.0

)%

$

2.15

$

1.79

$

0.36

20.1

%

Diluted

$

0.85

$

1.03

$

(0.18

)

(17.5

)%

$

2.03

$

1.73

$

0.30

17.3

%

Weighted-average common shares outstanding:

Basic

8,988

9,504

516

5.4

%

9,075

9,556

481

5.0

%

Diluted

9,604

9,843

239

2.4

%

9,633

9,934

301

3.0

%

Return on average assets (annualized)

1.6

%

2.1

%

1.9

%

1.8

%

Return on average equity (annualized)

8.7

%

11.3

%

10.4

%

9.6

%

Regional Management Corp. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(dollars in thousands, except par value amounts)

Increase (Decrease)

2Q 26

2Q 25

$

%

Assets

Cash

$

6,799

$

4,272

$

2,527

59.2

%

Net finance receivables

2,148,253

1,960,364

187,889

9.6

%

Unearned insurance premiums

(50,713

)

(49,046

)

(1,667

)

(3.4

)%

Allowance for credit losses

(224,000

)

(202,800

)

(21,200

)

(10.5

)%

Net finance receivables, less unearned insurance premiums and allowance for credit losses

1,873,540

1,708,518

165,022

9.7

%

Restricted cash

111,776

117,658

(5,882

)

(5.0

)%

Lease assets

45,084

42,665

2,419

5.7

%

Intangible assets

34,634

28,810

5,824

20.2

%

Restricted available-for-sale investments

24,206

22,122

2,084

9.4

%

Property and equipment

13,044

13,328

(284

)

(2.1

)%

Deferred tax assets, net

8,367

(8,367

)

(100.0

)%

Other assets

20,511

21,391

(880

)

(4.1

)%

Total assets

$

2,129,594

$

1,967,131

$

162,463

8.3

%

Liabilities and Stockholders’ Equity

Liabilities:

Debt

$

1,675,942

$

1,509,133

$

166,809

11.1

%

Unamortized debt issuance costs

(5,617

)

(6,862

)

1,245

18.1

%

Net debt

1,670,325

1,502,271

168,054

11.2

%

Lease liabilities

47,241

44,768

2,473

5.5

%

Deferred tax liabilities, net

2,588

2,588

100.0

%

Accounts payable and accrued expenses

31,109

57,141

(26,032

)

(45.6

)%

Total liabilities

1,751,263

1,604,180

147,083

9.2

%

Stockholders’ equity:

Preferred stock ($0.10 par value, 100,000 shares authorized, none issued or outstanding)

Common stock ($0.10 par value, 1,000,000 shares authorized, 15,298 shares issued and 9,340 shares outstanding at June 30, 2026 and 15,225 shares issued and 9,962 shares outstanding at June 30, 2025)

1,530

1,522

8

0.5

%

Additional paid-in capital

142,805

137,129

5,676

4.1

%

Retained earnings

424,469

389,557

34,912

9.0

%

Accumulated other comprehensive loss

(49

)

(2

)

(47

)

(2,350.0

)%

Treasury stock (5,958 shares at June 30, 2026 and 5,263 shares at

June 30, 2025)

(190,424

)

(165,255

)

(25,169

)

(15.2

)%

Total stockholders’ equity

378,331

362,951

15,380

4.2

%

Total liabilities and stockholders’ equity

$

2,129,594

$

1,967,131

$

162,463

8.3

%

Regional Management Corp. and Subsidiaries

Selected Financial Data

(Unaudited)

(dollars in thousands, except per share amounts)

Net Finance Receivables

2Q 26

1Q 26

QoQ $

Inc (Dec)

QoQ %

Inc (Dec)

2Q 25

YoY $

Inc (Dec)

YoY %

Inc (Dec)

Large loans

$

1,659,685

$

1,591,528

$

68,157

4.3

%

$

1,413,367

$

246,318

17.4

%

Small loans

488,568

512,473

(23,905

)

(4.7

)%

546,997

(58,429

)

(10.7

)%

Total

$

2,148,253

$

2,104,001

$

44,252

2.1

%

$

1,960,364

$

187,889

9.6

%

Number of branches

357

355

2

0.6

%

352

5

1.4

%

Net finance receivables per branch

$

6,018

$

5,927

$

91

1.5

%

$

5,569

$

449

8.1

%

Average Net Finance Receivables

2Q 26

1Q 26

QoQ $

Inc (Dec)

QoQ %

Inc (Dec)

2Q 25

YoY $

Inc (Dec)

YoY %

Inc (Dec)

Large loans

$

1,620,686

$

1,592,493

$

28,193

1.8

%

$

1,372,783

$

247,903

18.1

%

Small loans

494,693

531,037

(36,344

)

(6.8

)%

540,106

(45,413

)

(8.4

)%

Total

$

2,115,379

$

2,123,530

$

(8,151

)

(0.4

)%

$

1,912,889

$

202,490

10.6

%

Revenue Yields (1)

2Q 26

1Q 26

QoQ

Inc (Dec)

2Q 25

YoY

Inc (Dec)

Large loans

26.6

%

26.3

%

0.3

%

26.6

%

0.0

%

Small loans

34.3

%

34.3

%

0.0

%

36.5

%

(2.2

)%

Total interest and fee yield

28.4

%

28.3

%

0.1

%

29.4

%

(1.0

)%

Total revenue yield

31.8

%

31.5

%

0.3

%

32.9

%

(1.1

)%

(1)

Components of Increase in Interest and Fee Income

2Q 26 Compared to 2Q 25

Increase (Decrease)

Volume

Rate

Volume & Rate

Total

Large loans

$

16,516

$

(95

)

$

(18

)

$

16,403

Small loans

(4,140

)

(2,926

)

246

(6,820

)

Product mix

2,517

(1,781

)

(736

)

Total

$

14,893

$

(4,802

)

$

(508

)

$

9,583

Loans Originated (1)

2Q 26

1Q 26

QoQ $

Inc (Dec)

QoQ %

Inc (Dec)

2Q 25

YoY $

Inc (Dec)

YoY %

Inc (Dec)

Large loans

$

371,319

$

265,460

$

105,859

39.9

%

$

336,473

$

34,846

10.4

%

Small loans

132,316

122,493

9,823

8.0

%

173,856

(41,540

)

(23.9

)%

Total

$

503,635

$

387,953

$

115,682

29.8

%

$

510,329

$

(6,694

)

(1.3

)%

(1)

Other Key Metrics

2Q 26

1Q 26

2Q 25

Net credit losses

$

64,506

$

66,268

$

56,887

Percentage of average net finance receivables (annualized)

12.2

%

12.5

%

11.9

%

Provision for credit losses

$

69,006

$

64,868

$

60,587

Percentage of average net finance receivables (annualized)

13.0

%

12.2

%

12.7

%

Percentage of total revenue

41.1

%

38.8

%

38.5

%

General and administrative expenses

$

65,444

$

64,664

$

62,945

Percentage of average net finance receivables (annualized)

12.4

%

12.2

%

13.2

%

Percentage of total revenue

39.0

%

38.7

%

40.0

%

Same store results (1):

Net finance receivables at period-end

$

2,135,915

$

2,087,752

$

1,915,667

Net finance receivable growth rate

9.0

%

10.7

%

8.1

%

Number of branches in calculation

345

345

335

(1)

Contractual Delinquency

2Q 26

1Q 26

2Q 25

Allowance for credit losses

$

224,000

10.4

%

$

219,500

10.4

%

$

202,800

10.3

%

Current

1,824,145

84.9

%

1,801,192

85.6

%

1,672,027

85.3

%

1 to 29 days past due

174,752

8.1

%

151,875

7.2

%

158,951

8.1

%

Delinquent accounts:

30 to 59 days

40,971

2.0

%

35,235

1.7

%

35,362

1.8

%

60 to 89 days

32,763

1.5

%

32,251

1.5

%

28,949

1.5

%

90 to 119 days

26,497

1.2

%

28,331

1.4

%

22,348

1.1

%

120 to 149 days

24,404

1.1

%

27,198

1.3

%

21,625

1.1

%

150 to 179 days

24,721

1.2

%

27,919

1.3

%

21,102

1.1

%

Total delinquency

$

149,356

7.0

%

$

150,934

7.2

%

$

129,386

6.6

%

Total net finance receivables

$

2,148,253

100.0

%

$

2,104,001

100.0

%

$

1,960,364

100.0

%

Contractual Delinquency by Product

2Q 26

1Q 26

2Q 25

Large loans

$

97,228

5.9

%

$

95,192

6.0

%

$

76,690

5.4

%

Small loans

52,128

10.7

%

55,742

10.9

%

52,696

9.6

%

Total

$

149,356

7.0

%

$

150,934

7.2

%

$

129,386

6.6

%

Income Statement Quarterly Trend

2Q 25

3Q 25

4Q 25

1Q 26

2Q 26

QoQ $

B(W)

YoY $

B(W)

Revenue

Interest and fee income

$

140,695

$

148,672

$

153,029

$

150,296

$

150,278

$

(18

)

$

9,583

Insurance income, net

11,499

11,391

11,386

11,810

10,976

(834

)

(523

)

Other income

5,248

5,424

5,287

5,184

6,752

1,568

1,504

Total revenue

157,442

165,487

169,702

167,290

168,006

716

10,564

Expenses

Provision for credit losses

60,587

60,474

66,379

64,868

69,006

(4,138

)

(8,419

)

Personnel

38,584

39,517

40,394

39,342

39,433

(91

)

(849

)

Occupancy

6,911

7,160

7,227

7,479

7,252

227

(341

)

Marketing

5,059

4,212

3,874

4,181

4,889

(708

)

170

Other

12,391

13,179

13,024

13,662

13,870

(208

)

(1,479

)

Total general and administrative

62,945

64,068

64,519

64,664

65,444

(780

)

(2,499

)

Interest expense

20,426

21,971

22,646

22,923

22,993

(70

)

(2,567

)

Income before income taxes

13,484

18,974

16,158

14,835

10,563

(4,272

)

(2,921

)

Income taxes

3,344

4,618

3,249

3,434

2,410

1,024

934

Net income

$

10,140

$

14,356

$

12,909

$

11,401

$

8,153

$

(3,248

)

$

(1,987

)

Net income per common share:

Basic

$

1.07

$

1.53

$

1.40

$

1.24

$

0.91

$

(0.33

)

$

(0.16

)

Diluted

$

1.03

$

1.42

$

1.30

$

1.18

$

0.85

$

(0.33

)

$

(0.18

)

Weighted-average shares outstanding:

Basic

9,504

9,370

9,233

9,163

8,988

175

516

Diluted

9,843

10,133

9,941

9,662

9,604

58

239

Balance Sheet & Other Key Metrics Quarterly Trends

2Q 25

3Q 25

4Q 25

1Q 26

2Q 26

QoQ $

Inc (Dec)

YoY $

Inc (Dec)

Total assets

$

1,967,131

$

2,028,266

$

2,103,930

$

2,072,750

$

2,129,594

$

56,844

$

162,463

Net finance receivables

$

1,960,364

$

2,053,017

$

2,140,199

$

2,104,001

$

2,148,253

$

44,252

$

187,889

Allowance for credit losses

$

202,800

$

212,000

$

220,900

$

219,500

$

224,000

$

4,500

$

21,200

Debt

$

1,509,133

$

1,581,992

$

1,650,764

$

1,621,398

$

1,675,942

$

54,544

$

166,809

Interest and fee yield (1)

29.4

%

29.7

%

29.3

%

28.3

%

28.4

%

0.1

%

(1.0

)%

Efficiency ratio (2)

40.0

%

38.7

%

38.0

%

38.7

%

39.0

%

0.3

%

(1.0

)%

Operating expense ratio (3)

13.2

%

12.8

%

12.4

%

12.2

%

12.4

%

0.2

%

(0.8

)%

Delinquency rate (4)

6.6

%

7.0

%

7.5

%

7.2

%

7.0

%

(0.2

)%

0.4

%

Net credit loss rate (5)

11.9

%

10.2

%

11.0

%

12.5

%

12.2

%

(0.3

)%

0.3

%

Book value per share

$

36.43

$

37.94

$

39.05

$

40.25

$

40.51

$

0.26

$

4.08

(1)

(2)

(3)

(4)

(5)

Average Net Finance Receivables

YTD 26

YTD 25

YoY $

Inc (Dec)

YoY %

Inc (Dec)

Large loans

$

1,606,667

$

1,356,543

$

250,124

18.4

%

Small loans

512,765

544,520

(31,755

)

(5.8

)%

Total

$

2,119,432

$

1,901,063

$

218,369

11.5

%

Revenue Yields (1)

YTD 26

YTD 25

YoY

Inc (Dec)

Large loans

26.5

%

26.4

%

0.1

%

Small loans

34.3

%

36.2

%

(1.9

)%

Total interest and fee yield

28.4

%

29.2

%

(0.8

)%

Total revenue yield

31.6

%

32.7

%

(1.1

)%

(1)

Components of Increase in Interest and Fee Income

YTD 26 Compared to YTD 25

Increase (Decrease)

Volume

Rate

Volume & Rate

Total

Large loans

$

32,968

$

687

$

126

$

33,781

Small loans

(5,741

)

(5,006

)

292

(10,455

)

Product mix

4,620

(3,324

)

(1,296

)

Total

$

31,847

$

(7,643

)

$

(878

)

$

23,326

Loans Originated (1)

YTD 26

YTD 25

YTD $

Inc (Dec)

YTD %

Inc (Dec)

Large loans

$

636,779

$

578,282

$

58,497

10.1

%

Small loans

254,809

324,167

(69,358

)

(21.4

)%

Total

$

891,588

$

902,449

$

(10,861

)

(1.2

)%

(1)

Other Key Metrics

YTD 26

YTD 25

Net credit losses

$

130,774

$

115,279

Percentage of average net finance receivables (annualized)

12.3

%

12.1

%

Provision for credit losses

$

133,874

$

118,579

Percentage of average net finance receivables (annualized)

12.6

%

12.5

%

Percentage of total revenue

39.9

%

38.2

%

General and administrative expenses

$

130,108

$

128,988

Percentage of average net finance receivables (annualized)

12.3

%

13.6

%

Percentage of total revenue

38.8

%

41.6

%

Non-GAAP Financial Measures

In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), this press release 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. 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.

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 a reconciliation of GAAP measures to non-GAAP measures.

2Q 26

Debt

$

1,675,942

Total stockholders' equity

378,331

Less: Intangible assets

34,634

Tangible equity (non-GAAP)

$

343,697

Funded debt-to-equity ratio

4.4

x

Funded debt-to-tangible equity ratio (non-GAAP)

4.9

x