Regional Management (RM) 8-K Regional Management Corp. Announces Fourth Quarter 2019 Results

Exhibit 99.1

Regional Management Corp. Announces Fourth Quarter 2019 Results

-    Net income of $15.7 million and diluted earnings per share of $1.38    -

-    17.0% revenue growth, driven by 17.4% average finance receivables growth     -

Greenville, South Carolina – February 25, 2020 –Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the fourth quarter ended December 31, 2019.

Fourth Quarter 2019 Highlights

• Net income for the fourth quarter of 2019 was $15.7 million, a 45.6% increase from the prior-year period. Diluted earnings per share for the fourth quarter of 2019 was $1.38, compared to $0.90 in the prior-year period.

• Total finance receivables as of December 31, 2019 were $1.1 billion, an increase of 18.5%, or $172.6 million, from the prior-year period.

• 19^th consecutive quarter of year-over-year double-digit finance receivables growth.

• Total core small and large loan finance receivables increased $195.4 million, or 22.3%, compared to the prior-year period.

• Large loan finance receivables of $608.6 million increased $170.6 million, or 39.0%, from the prior-year period and represented 55.1% of the total loan portfolio. Small loan finance receivables as of December 31, 2019 were $462.5 million, an increase of 5.7% over the prior-year period.

• Total revenue for the fourth quarter of 2019 was $98.0 million, a $14.2 million, or 17.0%, increase from the prior-year period.

• 14^th consecutive quarter of year-over-year double-digit revenue growth.

• Interest and fee income increased 17.0%, driven by a 17.4% increase in average finance receivables compared to the prior-year period.

• Insurance income, net increased $0.9 million, driven by an increase in premium revenue and a decrease innon-file insurance claims expense (due to the previously disclosed change in business practice to lower the utilization ofnon-file insurance).

1

• Provision for credit losses for the fourth quarter of 2019 was $26.0 million, an increase of $2.3 million, or 9.9%, from the prior-year period. The increase was due to $4.0 million of higher net credit losses, primarily related to growth in finance receivables.

• Annualized net credit losses as a percentage of average finance receivables were 9.2%, a 10 basis point increase from 9.1% in the prior-year period, due to incrementalnon-file insurance claims shifting from insurance income, net to credit losses as compared to the prior-year period.

• 30+ day contractual delinquencies as of December 31, 2019 were 7.2%, compared to 7.7% as of December 31, 2018. 30+ day contractual delinquencies as of December 31, 2018 included 0.5% related to hurricane-affected branches. Additionally, 90+ day contractual delinquencies were 3.2%, compared to 3.5% in the prior-year-period.

• In October 2019, the company completed a third asset-backed securitization, a $130 million note issuance (senior class rated “AA” by DBRS) with a weighted-average coupon of 3.17%.

“We are extremely proud of our terrific fourth quarter and full year 2019 performance,” said Peter R. Knitzer, President and Chief Executive Officer of Regional Management Corp. “Our team generated record results on both our top and bottom lines, and our finance receivables exceeded the $1.1 billion mark. The expansion of our core loan portfolio continues to fuel our substantial revenue growth, further validating our hybrid strategy of increasing receivables within existing branches while expanding our footprint.”

“Our credit performance also remained stable in the fourth quarter, as finance receivables that have passed our custom scorecard criteria continue to perform in line with our expectations,” added Mr. Knitzer. “In addition, we continued to invest in our business while also prudently managing our expenses, resulting in significant improvements in our efficiency and operating expense ratios. We exited 2019 in the strongest position in Regional’s history, and we remain primed to succeed and create value in 2020 and over the longer term.”

Fourth Quarter 2019 Results

Finance receivables outstanding at December 31, 2019 were $1.1 billion, an 18.5% increase from $932.2 million in the prior-year period. The increase was primarily due to continued strong growth in both the core small and large loan portfolios.

For the fourth quarter ended December 31, 2019, the company reported total revenue of $98.0 million, a 17.0% increase from $83.7 million in the prior-year period. Interest and fee income for the fourth quarter of 2019 was $87.8 million, a 17.0% increase from $75.0 million in the prior-year period, related to ongoing growth in the core small and large loan portfolios.

The provision for credit losses in the fourth quarter of 2019 was $26.0 million, a $2.3 million, or 9.9%, increase compared to $23.7 million in the prior-year period. The increase was primarily due to $4.0 million of higher net credit losses, including an additional $0.6 million related to the change in business practice to lower the utilization ofnon-file insurance. The change in business practice had no impact on net income.

2

Net credit losses were $24.7 million in the fourth quarter of 2019, an increase of $4.0 million over the prior-year period, primarily related to growth in finance receivables. Annualized net credit losses as a percentage of average finance receivables in the fourth quarter of 2019 were 9.2%, a 10 basis point increase from 9.1% in the prior-year period. This increase was due to incrementalnon-file insurance claims shifting from insurance income, net to credit losses as compared to the prior-year period.

General and administrative expenses for the fourth quarter of 2019 were $40.9 million, an increase of $4.3 million, or 11.7%, from the prior-year period. The operating expense ratio (annualized general and administrative expenses as a percentage of average finance receivables) was 15.3%, an 80 basis point improvement from the prior-year period. General and administrative expenses for the fourth quarter of 2019 included $0.6 million of incremental costs related to new branches that opened since the prior-year period.

Interest expense was $10.3 million in the fourth quarter of 2019, compared to $9.6 million in the prior-year period. The increase in interest expense was primarily due to larger long-term debt amounts outstanding from the ongoing growth in finance receivables.

Net income for the fourth quarter of 2019 was $15.7 million, an increase from $10.8 million in the prior-year period. Diluted earnings per share for the fourth quarter of 2019 was $1.38, an increase from $0.90 in the prior-year period.

First Quarter 2020 Developments

As previously disclosed, effective January 1, 2020, Regional replaced its previous incurred loss impairment model for estimating credit losses on financial assets with a current expected credit loss (“CECL”) model. As a result, on January 1, 2020, the company incurred an increase in its allowance for credit losses of $60 million and aone-time, cumulative reduction in retained earnings of approximately $46 million (net of $14 million in taxes). Regional’s allowance for credit losses as a percentage of finance receivables increased from 5.6% on December 31, 2019 to 10.8% on January 1, 2020. The adoption of CECL did not cause the company to violate any of its existing debt covenants and will not inhibit the company in funding its growth or returning capital to its shareholders.

In addition, in January 2020, Regional experienced an isolated information technology infrastructure event that caused an extended outage of its loan management system. The company has determined that an inadvertent operational failure in IT allowed a systemback-up process to run concurrently and inappropriately with normal nightly processes, resulting in the event. The outage affected the company’s ability to originate branch loans and process certain types of payments. However, during that time, all branches remained open, serviced customers, and accepted payments via cash, personal check, money order, and certain electronic payment methods. The outage did not impact the security of customer information or the integrity of company and customer data. The event also did not involve an external breach or the compromise of data by any third party. Regional, with the assistance of third party experts, addressed and resolved the issue and is confident that it will not occur again. The loan management system has functioned normally since its restoration, and all branches have been fully operational.

3

While the event did not impact Regional’s fourth quarter 2019 financial results, the company expects that the outage will adversely impact net income by approximately $1.3 million in the first quarter of 2020 and by an additional $0.3 million throughout the remainder of the year. Management is also evaluating the event in relation to its 2019year-end assessment of internal controls.

2020 De Novo Outlook

As of December 31, 2019, the company’s branch network consisted of 366 locations. The company continues to expect to open a total of between 25 and 30 de novo branches for the full year 2020.

Liquidity and Capital Resources

As of December 31, 2019, the company had finance receivables of $1.1 billion and outstanding long-term debt of $808.2 million ($805.8 million of outstanding debt and $2.4 million of interest payable), consisting of:

• $349.3 million on its $640.0 million senior revolving credit facility,

• $46.4 million on its $125.0 million revolving warehouse credit facility, and

• $410.1 million through its asset-backed securitizations.

The company’s unused capacity on its revolving credit facilities (subject to the borrowing base) was $369.3 million, or 48.3%, as of December 31, 2019.

The company had a fundeddebt-to-equity ratio of 2.7 to 1.0 and a shareholder equity ratio of 26.1% as of December 31, 2019. On anon-GAAP basis, the company had a fundeddebt-to-tangible equity ratio of 2.8 to 1.0 as of December 31, 2019. Please refer to the reconciliations ofnon-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.

Thedial-in number for the conference call is (855)327-6837 (toll-free) or (631)891-4304 (direct). 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 atwww.RegionalManagement.com.

4

A replay will be available following the end of the call through Tuesday, March 3, 2020, by telephone at (844) 512-2921 (toll-free) or (412)317-6671 (international), passcode 10008628. A webcast replay of the call will be available atwww.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” in 366 branch locations across 11 states in the Southeastern, Southwestern,Mid-Atlantic, and Midwestern United States. Most of its 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. Regional Management sources loans through its multiple channel platform, which includes branches, centrally-managed direct mail campaigns, digital partners, retailers, and its consumer website. For more information, please visitwww.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 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: changes in general economic conditions, including levels of unemployment and bankruptcies; risks associated with Regional Management’s ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support its operations and initiatives; risks associated with Regional Management’s loan origination and servicing software system, including the risk of prolonged system outages; risks related to opening new branches, including the ability or inability to open new branches as planned; risks inherent in making loans, including credit risk, repayment risk, and value of collateral, which risks may increase in light of adverse or recessionary economic conditions; risks associated with the implementation of new underwriting models and processes, including as to the effectiveness of new custom scorecards; risks relating to Regional Management’s asset-backed securitization transactions; changes in interest rates; the risk that Regional Management’s existing

5

sources of liquidity become insufficient to satisfy its needs or that its access to these sources becomes unexpectedly restricted; changes in federal, state, or local laws, regulations, or regulatory policies and practices, and risks associated with the manner in which laws and regulations are interpreted, implemented, and enforced; changes in accounting standards, rules, and interpretations, and the failure of related assumptions and estimates, including those associated with the implementation of current expected credit loss (CECL) accounting; the impact of changes in tax laws, guidance, and interpretations; the timing and amount of revenues that may be recognized by Regional Management; changes in current revenue and expense trends (including trends affecting delinquencies and credit losses); changes in Regional Management’s markets and general changes in the economy (particularly in the markets served by Regional Management); changes in the competitive environment in which Regional Management operates or a decrease in the demand for its products; risks related to acquisitions; changes in operating and administrative expenses; and the departure, transition, or replacement of key personnel.

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 thenon-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.

Contact

Investor Relations

Garrett Edson, (203)682-8331

investor.relations@regionalmanagement.com

6

Regional Management Corp. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

(in thousands, except per share amounts)

							Better (Worse)												Better (Worse)
	4Q 19			4Q 18			$			%			FY 19			FY 18			$			%
Revenue
Interest and fee income	$	87,784		$	75,013		$	12,771			17.0	%	$	321,169		$	280,121		$	41,048			14.7	%
Insurance income, net		6,551			5,624			927			16.5	%		20,817			14,793			6,024			40.7	%
Other income		3,649			3,112			537			17.3	%		13,727			11,792			1,935			16.4	%
Total revenue		97,984			83,749			14,235			17.0	%		355,713			306,706			49,007			16.0	%
Expenses
Provision for credit losses		26,039			23,698			(2,341	)		(9.9	)%		99,611			87,056			(12,555	)		(14.4	)%
Personnel		25,305			22,074			(3,231	)		(14.6	)%		94,000			84,068			(9,932	)		(11.8	)%
Occupancy		5,876			5,933			57			1.0	%		24,618			22,519			(2,099	)		(9.3	)%
Marketing		1,897			1,902			5			0.3	%		8,206			7,745			(461	)		(6.0	)%
Other		7,813			6,707			(1,106	)		(16.5	)%		30,160			25,952			(4,208	)		(16.2	)%
Total general and administrative		40,891			36,616			(4,275	)		(11.7	)%		156,984			140,284			(16,700	)		(11.9	)%
Interest expense		10,285			9,643			(642	)		(6.7	)%		40,125			33,464			(6,661	)		(19.9	)%
Income before income taxes		20,769			13,792			6,977			50.6	%		58,993			45,902			13,091			28.5	%
Income taxes		5,086			3,022			(2,064	)		(68.3	)%		14,261			10,557			(3,704	)		(35.1	)%
Net income	$	15,683		$	10,770		$	4,913			45.6	%	$	44,732		$	35,345		$	9,387			26.6	%
Net income per common share:
Basic	$	1.44		$	0.92		$	0.52			56.5	%	$	3.92		$	3.03		$	0.89			29.4	%
Diluted	$	1.38		$	0.90		$	0.48			53.3	%	$	3.80		$	2.93		$	0.87			29.7	%
Weighted-average shares outstanding:
Basic		10,893			11,672			779			6.7	%		11,401			11,655			254			2.2	%
Diluted		11,327			12,010			683			5.7	%		11,773			12,078			305			2.5	%
Return on average assets (annualized)		5.6	%		4.6	%								4.3	%		4.0	%
Return on average equity (annualized)		21.1	%		15.7	%								15.4	%		13.6	%

7

Regional Management Corp. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(in thousands, except par value amounts)

							Increase (Decrease)
	4Q 19			4Q 18			$			%
Assets
Cash	$	2,263		$	3,657		$	(1,394	)		(38.1	)%
Gross finance receivables		1,500,962			1,237,526			263,436			21.3	%
Unearned finance charges and insurance premiums		(396,149	)		(305,283	)		(90,866	)		(29.8	)%
Finance receivables		1,104,813			932,243			172,570			18.5	%
Allowance for credit losses		(62,200	)		(58,300	)		(3,900	)		(6.7	)%
Net finance receivables		1,042,613			873,943			168,670			19.3	%
Restricted cash		54,164			46,484			7,680			16.5	%
Lease assets		26,438			—			26,438			100.0	%
Property and equipment		15,301			13,926			1,375			9.9	%
Intangible assets		9,438			10,010			(572	)		(5.7	)%
Deferred tax asset		619			—			619			100.0	%
Other assets		7,704			8,375			(671	)		(8.0	)%
Total assets	$	1,158,540		$	956,395		$	202,145			21.1	%
Liabilities and Stockholders’ Equity
Liabilities:
Long-term debt	$	808,218		$	660,507		$	147,711			22.4	%
Unamortized debt issuance costs		(9,607	)		(9,158	)		(449	)		(4.9	)%
Net long-term debt		798,611			651,349			147,262			22.6	%
Accounts payable and accrued expenses		28,676			25,138			3,538			14.1	%
Lease liabilities		28,470			—			28,470			100.0	%
Deferred tax liability		—			747			(747	)		(100.0	)%
Total liabilities		855,757			677,234			178,523			26.4	%
Stockholders’ equity:
Preferred stock ($0.10 par value, 100,000 shares authorized, no shares issued or outstanding)		—			—			—			—
Common stock ($0.10 par value, 1,000,000 shares authorized, 13,497 shares issued and 11,013 shares outstanding at December 31, 2019 and 13,323 shares issued and 11,777 shares outstanding at December 31, 2018)		1,350			1,332			18			1.4	%
Additionalpaid-in-capital		102,678			98,778			3,900			3.9	%
Retained earnings		248,829			204,097			44,732			21.9	%
Treasury stock (2,484 shares at December 31, 2019 and 1,546 shares at December 31, 2018)		(50,074	)		(25,046	)		(25,028	)		(99.9	)%
Total stockholders’ equity		302,783			279,161			23,622			8.5	%
Total liabilities and stockholders’ equity	$	1,158,540		$	956,395		$	202,145			21.1	%

8

Regional Management Corp. and Subsidiaries

Selected Financial Data

(Unaudited)

(in thousands, except per share amounts)

	Finance Receivables by Product
	4Q 19		3Q 19		QoQ $ Inc (Dec)			QoQ % Inc (Dec)			4Q 18		YoY $ Inc (Dec)			YoY % Inc (Dec)
Small loans	$	462,499	$	449,416	$	13,083			2.9	%	$	437,662	$	24,837			5.7	%
Large loans		608,608		554,664		53,944			9.7	%		437,998		170,610			39.0	%
Total core loans		1,071,107		1,004,080		67,027			6.7	%		875,660		195,447			22.3	%
Automobile loans		9,623		12,121		(2,498	)		(20.6	)%		26,154		(16,531	)		(63.2	)%
Retail loans		24,083		25,985		(1,902	)		(7.3	)%		30,429		(6,346	)		(20.9	)%
Total finance receivables	$	1,104,813	$	1,042,186	$	62,627			6.0	%	$	932,243	$	172,570			18.5	%
Number of branches at period end		366		358		8			2.2	%		359		7			1.9	%
Average finance receivables per branch	$	3,019	$	2,911	$	108			3.7	%	$	2,597	$	422			16.2	%

	Averages and Yields
	4Q 19					3Q 19					4Q 18
	Average Finance Receivables		Average Yield (Annualized)			Average Finance Receivables		Average Yield (Annualized)			Average Finance Receivables		Average Yield (Annualized)
Small loans	$	453,490		38.5	%	$	442,137		38.8	%	$	426,901		39.5	%
Large loans		581,913		29.2	%		527,670		29.1	%		425,948		28.4	%
Automobile loans		10,734		14.8	%		13,806		15.0	%		29,114		15.0	%
Retail loans		25,128		19.4	%		26,902		19.1	%		30,555		19.1	%
Total interest and fee yield	$	1,071,265		32.8	%	$	1,010,515		32.9	%	$	912,518		32.9	%
Total revenue yield	$	1,071,265		36.6	%	$	1,010,515		36.3	%	$	912,518		36.7	%

	Components of Increase in Interest and Fee Income 4Q 19 Compared to 4Q 18 Increase (Decrease)
	Volume			Rate			Volume & Rate			Net
Small loans	$	2,628		$	(1,121	)	$	(70	)	$	1,437
Large loans		11,080			874			320			12,274
Automobile loans		(690	)		(19	)		12			(697	)
Retail loans		(259	)		20			(4	)		(243	)
Product mix		291			9			(300	)		—
Total increase in interest and fee income	$	13,050		$	(237	)	$	(42	)	$	12,771

9

	Net Loans Originated (1) (2)
	4Q 19		3Q 19		QoQ $ Inc (Dec)			QoQ % Inc (Dec)			4Q 18		YoY $ Inc (Dec)			YoY % Inc (Dec)
Small loans	$	180,967	$	177,629	$	3,338			1.9	%	$	172,820	$	8,147			4.7	%
Large loans		174,341		166,835		7,506			4.5	%		115,805		58,536			50.5	%
Retail loans		3,833		4,421		(588	)		(13.3	)%		6,593		(2,760	)		(41.9	)%
Total net loans originated	$	359,141	$	348,885	$	10,256			2.9	%	$	295,218	$	63,923			21.7	%

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

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

	Other Key Metrics
	4Q 19			3Q 19			4Q 18
Net credit losses (1) (2)	$	24,739		$	20,815		$	20,698
Percentage of average finance receivables (annualized)		9.2	%		8.2	%		9.1	%
Provision for credit losses (3)	$	26,039		$	24,515		$	23,698
Percentage of average finance receivables (annualized)		9.7	%		9.7	%		10.4	%
Percentage of total revenue		26.6	%		26.7	%		28.3	%
General and administrative expenses	$	40,891		$	40,167		$	36,616
Percentage of average finance receivables (annualized)		15.3	%		15.9	%		16.1	%
Percentage of total revenue		41.7	%		43.8	%		43.7	%
Same store results (4):
Finance receivables atperiod-end	$	1,082,050		$	1,021,291		$	925,621
Finance receivable growth rate		16.7	%		15.9	%		13.7	%
Number of branches in calculation		337			332			337

(1) Includes hurricane-related net credit losses of $117 for 4Q 18.

(2) Includes net credit losses related to lower utilization ofnon-file insurance of $2,405, $1,791, and $1,781 for 4Q 19, 3Q 19, and 4Q 18, respectively.

(3) Includes hurricane-related provision for credit losses of $(183) for 4Q 18.

(4) Same store sales reflect the change in year-over-year sales for the comparable branch base. The comparable branch base includes those branches open for at least one year.

10

	Contractual Delinquency by Aging
	4Q 19				3Q 19				4Q 18
Allowance for credit losses (1)	$	62,200	5.6	%	$	60,900	5.8	%	$	58,300	6.3	%
Current		921,856	83.4	%		872,246	83.7	%		754,162	80.9	%
1 to 29 days past due		103,925	9.4	%		101,412	9.7	%		105,920	11.4	%
Delinquent accounts:
30 to 59 days		25,110	2.3	%		22,919	2.3	%		22,529	2.3	%
60 to 89 days		18,665	1.7	%		16,148	1.5	%		17,382	1.9	%
90 to 119 days		13,836	1.3	%		11,736	1.1	%		12,279	1.3	%
120 to 149 days		11,595	1.0	%		9,676	0.9	%		10,890	1.2	%
150 to 179 days		9,826	0.9	%		8,049	0.8	%		9,081	1.0	%
Total contractual delinquency (2)	$	79,032	7.2	%	$	68,528	6.6	%	$	72,161	7.7	%
Total finance receivables	$	1,104,813	100.0	%	$	1,042,186	100.0	%	$	932,243	100.0	%
1 day and over past due	$	182,957	16.6	%	$	169,940	16.3	%	$	178,081	19.1	%

	Contractual Delinquency by Product
	4Q 19				3Q 19				4Q 18
Small loans	$	42,265	9.1	%	$	36,620	8.1	%	$	40,663	9.3	%
Large loans		33,554	5.5	%		28,563	5.1	%		26,814	6.1	%
Automobile loans		754	7.8	%		1,153	9.5	%		2,083	8.0	%
Retail loans		2,459	10.2	%		2,192	8.4	%		2,601	8.5	%
Total contractual delinquency (2)	$	79,032	7.2	%	$	68,528	6.6	%	$	72,161	7.7	%

(1) Includes incremental hurricane allowance for credit losses of $3,600 in 4Q 18.

(2) Includes 0.5% delinquency related to hurricane-affected branches in 4Q 18.

11

	Income Statement Quarterly Trend
	4Q 18		1Q 19		2Q 19		3Q 19		4Q 19		QoQ $ B(W)			YoY $ B(W)
Revenue
Interest and fee income	$	75,013	$	74,322	$	75,974	$	83,089	$	87,784	$	4,695		$	12,771
Insurance income, net		5,624		4,113		5,066		5,087		6,551		1,464			927
Other income		3,112		3,313		3,234		3,531		3,649		118			537
Total revenue		83,749		81,748		84,274		91,707		97,984		6,277			14,235
Expenses
Provision for credit losses		23,698		23,343		25,714		24,515		26,039		(1,524	)		(2,341	)
Personnel		22,074		22,393		22,511		23,791		25,305		(1,514	)		(3,231	)
Occupancy		5,933		6,165		6,210		6,367		5,876		491			57
Marketing		1,902		1,651		2,261		2,397		1,897		500			5
Other		6,707		7,974		6,761		7,612		7,813		(201	)		(1,106	)
Total general and administrative		36,616		38,183		37,743		40,167		40,891		(724	)		(4,275	)
Interest expense		9,643		9,721		9,771		10,348		10,285		63			(642	)
Income before income taxes		13,792		10,501		11,046		16,677		20,769		4,092			6,977
Income taxes		3,022		2,393		2,677		4,105		5,086		(981	)		(2,064	)
Net income	$	10,770	$	8,108	$	8,369	$	12,572	$	15,683	$	3,111		$	4,913
Net income per common share:
Basic	$	0.92	$	0.69	$	0.71	$	1.11	$	1.44	$	0.33		$	0.52
Diluted	$	0.90	$	0.67	$	0.70	$	1.08	$	1.38	$	0.30		$	0.48
Weighted-average shares outstanding:
Basic		11,672		11,712		11,706		11,302		10,893		409			779
Diluted		12,010		12,076		12,022		11,677		11,327		350			683
Net interest margin	$	74,106	$	72,027	$	74,503	$	81,359	$	87,699	$	6,340		$	13,593
Net credit margin	$	50,408	$	48,684	$	48,789	$	56,844	$	61,660	$	4,816		$	11,252

	Balance Sheet Quarterly Trend
	4Q 18		1Q 19		2Q 19		3Q 19		4Q 19		QoQ $ Inc (Dec)		YoY $ Inc (Dec)
Total assets	$	956,395	$	953,467	$	1,019,316	$	1,086,172	$	1,158,540	$	72,368	$	202,145
Finance receivables	$	932,243	$	912,250	$	973,434	$	1,042,186	$	1,104,813	$	62,627	$	172,570
Allowance for credit losses	$	58,300	$	56,400	$	57,200	$	60,900	$	62,200	$	1,300	$	3,900
Long-term debt	$	660,507	$	628,786	$	689,310	$	743,835	$	808,218	$	64,383	$	147,711

12

	Other Key Metrics Quarterly Trend
	4Q 18			1Q 19			2Q 19			3Q 19			4Q 19			QoQ Inc (Dec)			YoY Inc (Dec)
Interest and fee yield (annualized)		32.9	%		32.1	%		32.5	%		32.9	%		32.8	%		(0.1	)%		(0.1	)%
Efficiency ratio (1)		43.7	%		46.7	%		44.8	%		43.8	%		41.7	%		(2.1	)%		(2.0	)%
Operating expense ratio (2)		16.1	%		16.5	%		16.2	%		15.9	%		15.3	%		(0.6	)%		(0.8	)%
30+ contractual delinquency		7.7	%		7.0	%		6.4	%		6.6	%		7.2	%		0.6	%		(0.5	)%
Net credit loss ratio (3)		9.1	%		10.9	%		10.7	%		8.2	%		9.2	%		1.0	%		0.1	%
Book value per share	$	23.70		$	24.15		$	24.88		$	26.00		$	27.49		$	1.49		$	3.79

(1) General and administrative expenses as a percentage of total revenue.

(2) Annualized general and administrative expenses as a percentage of average finance receivables.

(3) Annualized net credit losses as a percentage of average finance receivables.

	Averages and Yields
	FY 19					FY 18
	Average Finance Receivables		Average Yield			Average Finance Receivables		Average Yield
Small loans	$	437,358		38.5	%	$	391,481		40.0	%
Large loans		504,302		28.8	%		389,919		28.5	%
Automobile loans		16,384		14.8	%		41,026		15.6	%
Retail loans		27,701		19.0	%		31,393		19.0	%
Total interest and fee yield	$	985,745		32.6	%	$	853,819		32.8	%
Total revenue yield	$	985,745		36.1	%	$	853,819		35.9	%

	Components of Increase in Interest and Fee Income FY 19 Compared to FY 18 Increase (Decrease)
	Volume			Rate			Volume & Rate			Net
Small loans	$	18,356		$	(5,932	)	$	(695	)	$	11,729
Large loans		32,602			1,067			314			33,983
Automobile loans		(3,842	)		(315	)		189			(3,968	)
Retail loans		(700	)		4			—			(696	)
Product mix		(3,134	)		3,241			(107	)		—
Total increase in interest and fee income	$	43,282		$	(1,935	)	$	(299	)	$	41,048

	Net Loans Originated (1) (2)
	FY 19		FY 18		FY $ Inc (Dec)			FY% Inc (Dec)
Small loans	$	662,281	$	624,243	$	38,038			6.1	%
Large loans		594,617		409,174		185,443			45.3	%
Retail loans		19,630		26,579		(6,949	)		(26.1	)%
Total net loans originated	$	1,276,528	$	1,059,996	$	216,532			20.4	%

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

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

13

	Other Key Metrics
	FY 19			FY 18
Net credit losses (1) (2)	$	95,711		$	77,666
Percentage of average finance receivables		9.7	%		9.1	%
Provision for credit losses (3)	$	99,611		$	87,056
Percentage of average finance receivables		10.1	%		10.2	%
Percentage of total revenue		28.0	%		28.4	%
General and administrative expenses	$	156,984		$	140,284
Percentage of average finance receivables		15.9	%		16.4	%
Percentage of total revenue		44.1	%		45.7	%

(1) Includes hurricane-related net credit losses of $2,325 and $1,936 for FY 19 and FY 18, respectively.

(2) Includes net credit losses related to lower utilization ofnon-file insurance of $7,575 and $3,362 for FY 19 and FY 18, respectively.

(3) Includes hurricane-related provision for credit losses of $(1,275) and $2,736 for FY 19 and FY 18, respectively.

Non-GAAP Financial Measures

In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certainnon-GAAP financial measures. The company’s management utilizesnon-GAAP measures as additional metrics to aid in, and enhance, its understanding of the company’s financial results. Tangible equity and fundeddebt-to-tangible equity ratio arenon-GAAP measures that adjust GAAP measures to exclude intangible assets. Management uses thesenon-GAAP measures to evaluate and manage the company’s capital and leverage position. The company also believes that thesenon-GAAP 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. Thisnon-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’snon-GAAP measures may not be comparable to similarly titlednon-GAAP measures of other companies. The following table provides a reconciliation of GAAP measures tonon-GAAP measures.

	4Q 19
Long-term debt	$	808,218
Total stockholders’ equity		302,783
Less: Intangible assets		9,438
Tangible equity(non-GAAP)	$	293,345
Fundeddebt-to-equity ratio		2.67x
Fundeddebt-to-tangible equity ratio(non-GAAP)		2.76x

14