Regional Management : Investor Presentation - November 2023

Investor Presentation

November 14th, 2023

Legal Disclosures

This document contains summarized information concerning Regional Management Corp. (the "Company") and the Company's business, operations, financial performance, and trends. No representation is made that the information in this document is complete. For additional financial, statistical, and business information, please see the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission (the "SEC"), as well as the Company's other reports filed with the SEC from time to time. Such reports are or will be available on the Company's website (www.regionalmanagement.com) and on the SEC's website (www.sec.gov). The information and opinions contained in this document are provided as of the date of this presentation and are subject to change without notice. This document has not been approved by any regulatory or supervisory authority.

This presentation, the related remarks, and the responses to various questions may contain various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead represent the Company's expectations or beliefs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlook 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 the Company. 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 such statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in forward-looking statements include, but are not limited to, the following: managing growth effectively, implementing Regional Management's growth strategy, and opening new branches as planned; 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 make technological improvements as quickly as competitors; security breaches, cyber-attacks, failures in information systems, or fraudulent activity; 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 resurgence of COVID-19), 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 the Company's filings with the SEC. The Company will not update or revise forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments, or otherwise, except as required by law.

This presentation also contains certain non-GAAP measures. Please refer to the Appendix accompanying this presentation for a reconciliation of non-GAAP measures to the most comparable GAAP measures.

2

Strategic Imperatives

Focused on consistent execution of our core business, including:

Expand margins and maximize cash flows from loan portfolio

Closely manage expenses and drive improved operating efficiency

• Pricing increases, credit tightening, and improving economic conditions expected to drive higher future revenue yields
• Investment in data and analytics and improved credit decisioning will create better net credit loss outcomes

• Investment in digital initiatives, technology, data and analytics, artificial intelligence, and centralized support create more efficient operations
• Geographic expansion,higher-balance auto- secured lending, and portfolio growth initiatives drive scale

Execute on long-term growth strategies to increase revenues

Maintain a strong balance sheet, ample liquidity and borrowing capacity, and consistent capital return

• Geographic expansion has increased addressable market by 80% since 2020; significant opportunities for growth remain in existing 19 states and from future new state entry
• Digital investment widens the marketing funnel, improves the customer experience, and enhances theomni-channel operating model

• Diversified sources of funding with staggered revolving maturities support growth and protect againstshort-term disruptions in credit markets
• 87% of debt is at afixed-rate, with a weighted average coupon of 3.6% and a weighted average revolving duration of 1.3 years (1)
• Consistent capital return to shareholders through quarterly dividend and stock repurchases

• Originatinghigh-quality loans within tightened credit box
• Closely managing expenses
• Maintaining a strong balance sheet

Expect to emerge from current economic cycle as a stronger company:

• Larger,higher-quality portfolio
• Improved operating efficiencies
• Well-positionedfor future growth and delivery of attractive returns to shareholders

(1) As of 9/30/23

3

Excess Capital Consistently Returned to Shareholders

Proven business model capable of generating excess capital to return to shareholders and to reinvest in strategic initiatives that will generate sustainable, long-term profitable growth

Capital Generation, Net of Capital Return

Total Capital (1)

Book Value per Share

Net Tangible Book Value per Share (2)

In millions

$442.0

$423.2 $418.4$427.6

					$515.5
	7.4%			$500.5	$502.9
	CAGR	$488.3	$487.4
$457.5	$466.1
				$33.06	$33.61
		$32.18	$32.41	$32.71
	$31.15
$30.47

Capital Return

In millions								$0.3
		$0.30	$0.30	$0.30	$0.30	$0.30	$0.30	$0.30
								$0.3
$0.25	$0.25	$0.25			$109.8	$112.7	$115.7	$118.7
			$103.9	$106.8
		$89.4			$0.2
$0.20
	$77.4						$0.2
	$63.4

$26.28

$26.93

$28.89

$27.73

			$31.71	$32.08
	$31.00	$31.14	$31.29
$29.50	$30.08

$38.9

$0.1

$25.45

$26.05

$26.81

$27.91

$14.0
											$0.1
1Q 21	2Q 21	3Q 21	4Q 21	1Q 22	2Q 22	3Q 22	4Q 22	1Q 23	2Q 23	3Q 23

$ in millions(except per share amounts)	1Q 2021	2Q 2021	3Q 2021	4Q 2021	1Q 2022	2Q 2022	3Q 2022	4Q 2022	1Q 2023	2Q 2023	3Q 2023
Capital Generation in Quarter:
Stockholders' Equity	$	283.6	$	279.0	$	277.5	$	282.7	$	298.7	$	298.6	$	308.5	$	308.6	$	316.7	$	321.5	$	330.6
Allowance for Credit Losses		139.6		139.4		150.1		159.3		158.8		167.5		179.8		178.8		183.8		181.4		184.9
Total Capital	$	423.2	$	418.4	$	427.6	$	442.0	$	457.5	$	466.1	$	488.3	$	487.4	$	500.5	$	502.9	$	515.5
B/ (W) vs Prior Quarter
		$	(4.9)	$	9.2	$	14.5	$	15.5	$	8.5	$	22.2	$	(0.8)	$	13.1	$	2.4	$	12.6
Capital Return in Quarter:
Dividends to Shareholders	$	2.2	$	2.7	$	2.6	$	2.5	$	3.0	$	2.9	$	2.9	$	2.9	$	2.9	$	3.0	$	3.0
Stock Repurchased	$	11.8	$	22.2	$	22.0	$	11.4	$	9.0	$	11.6	$	-	$	-	$	-	$	-	$	-
Book Value per Share	$	26.28	$	26.93	$	27.73	$	28.89	$	30.47	$	31.15	$	32.18	$	32.41	$	33.06	$	32.71	$	33.61
Net Tangible Book Value per Share (2)	$	25.45	$	26.05	$	26.81	$	27.91	$	29.50	$	30.08	$	31.00	$	31.14	$	31.71	$	31.29
$	32.08

1. Capital = Stockholders' Equity + Allowance for Credit Losses
2. This is anon-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measure.

Cumulative Stock Repurchase		Cumulative Dividends
		Dividend Per Share

Investors have an opportunity to build a position in RM while RM stock trades at a discount to net tangible book value per share

4

Investment Highlights

Strong balance sheet supports capital

returns

Geographic, product, and channel

expansion drive growth

High customer satisfaction and loyalty

Omni-channel growth strategy with

abundant market opportunity

Controlled growth with stable credit using

advanced credit tools

Modern infrastructure and digital

capabilities

Scale, digital capabilities, and lighter footprint will drive operating leverage

Proven experience through multiple

credit cycles

5

Company Overview

Diversified consumer finance company operating under the name "Regional Finance"

Provide installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders

Goal to consistently grow finance receivables and soundly manage portfolio risk, while providing customers with attractive, safe, easy-to-understand loan products serving their varied financial needs

Founded 1987	347 branches
NYSE Listed: RM	19 states
Total receivables of	Multi-channel marketing:
$1.8 billion	branches, digital, and direct mail

1

2

6

16

1 9

104

Legacy States (prior to 2021)

2021 New States (IL, UT)

2022 New States (MS, IN, CA, LA)

2023 New States to Date (ID, AZ)

Potential Future State Expansion

Geographic footprint and net finance receivables as of 9/30/2023

10

8 5

16

21

1939

41

332 12

2

6

Abundant Total Addressable Market

Approximately 72 millionAmericans generally align with Regional's customer base (1)(3)$91 billionmarket opportunity - RM has less than 2% market share and increased its addressable market by over 80% since 2020; still significant runway for growth

$4.7 Trillion Consumer Finance Market (2)

28% of US Population with FICO Between 550 & 700 (3)

Personal Installment Loans Account for ~$91 billion (1)

100%

90%

80%

70%

60%

50%

Personal Lending (3%)

Other (11%)

Credit Cards (21%)

Auto Loans (34%)

	300-549
800-850	8%	550-599

23%	7%

600-649

9%

650-699

40%

750-799

24%

12%

30%

20%

10%

0%

Student Loans (31%)

700-749

17%

(1)	Adult US Population sourced from US Census Bureau www.census.gov/library/stories/2021/08/united-states-adult-population-grew-faster-than-nations-total-population-from-
	2010-to-2020.html	7
(2)	Sourced from Equifax US National Consumer Credit Trends Report; June 2023, sourced from June 2023 publication
(3)	Sourced from Arkali, Can. "Average U.S. FICO® Score Stays Steady at 716" FICO.com, 30 Aug. 2022, www.fico.com/blogs/average-us-fico-score-stays-steady-716-missed-

payments-and-consumer-debt-rises

Serving Our Customers Best

90+% favorable ratings for key attributes (1):

• Loan process was quick, easy, and understandable
• People are professional, responsive, respectful, knowledgeable, helpful, and friendly

Continued investment in digital channels, remote servicing options, and focused on delivering positive customer experience has allowed us to maintain strong metrics

Excellent net promoter score of 64 (1)

92% of customers would apply to Regional Finance first the next time they need a loan

35%
		21%	11%	10%
			8%	8%	7%
	Household bills	Debt	Auto-related	Home- related	Medical	Family event-	Other
		consolidation				related
	Average Age (2)	Annual Income (2)
	54 Years		$47,000

Some College or Advanced Degree

(1)

54%

(1) Fall 2023 Customer Satisfaction Survey (performed by third-party and commissioned by RM)	8

(2) Data as of 9/30/2023

Product Offerings

Multi-Channel Acquisition

In Branch

$695.6MM Originated

69% Large/31% Small

Direct Mail

$303.0MM Originated

Convenience Check Loans

Digital

$128.4MM Originated

Digital Lead Generation

Partnership Affiliates

Small Loans

Customer Need	Characteristics	Portfolio
Short-term cash needs	Size: $500 to $2,500	Outstanding Balance:
Bill payment	Average: ~$2,100	$474.2MM
# of Loans: 282,600
Back-to-school expenses	Average APR: 44.2%
Auto repair

Large Loans

Customer Need	Characteristics	Portfolio
Debt consolidation	Size: $2,501 to $25,000	Outstanding Balance:
Medical expenses	Average: ~$5,800	$1.3B
# of Loans: 244,800
Home repairs	Average APR: 29.4%

9

Originations and portfolio metrics are YTD and as of 9/30/2023, respectively.

Financial Overview: Originations

	Total Originations		Digital Originations
	$434.4	$470.3			$56.3
	$426.3	$425.1			$53.5
	$420.7		$48.1	$48.7	$50.7
$364.0	$377.7		$418.7	$399.0	$47.7
					$43.4
		$326.0	$303.2	$36.0		$40.3
					$34.3
$234.8

$20.8

$16.1

4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q
20	21	21	21	21	22	22	22	22	23	23	23	20	21	21	21	21	22	22	22	22	23	23	23
In millions												In millions

Originations Impacted by Credit Tightening

Year-over-year growth rate reduced from credit tightening actions; originations more concentrated on programs to present and former borrowers, which perform better than new borrowers

3Q 23 direct mail originations were up 12.0% year-over- year and digital and branch originations were down 9.9% and 0.8%, respectively, from tightened credit and a focus on present and former borrowers

Digitally Sourced Originations

Net Finance Receivables

$1,699	$1,751
$1,689
$1,676
$1,608

$1,526

$1,446

$1,426

$1,314

$1,183

$1,136 $1,106

4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q
20	21	21	21	21	22	22	22	22	23	23	23

In millions

Portfolio Mix % of ENR

Small Loans Large Loans Automobile Loans Retail Loans

100 %

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2016	2017	2018	2019	2020	2021	2022	3Q 23

Digital originations are sourced from either our affiliate partnerships or directly from our website, underwritten by our custom credit scorecards, and serviced by our branches

Digital volume represented 28.3% of our total new borrower volume in 3Q 23

Large loans represented 73.0% of new borrower digitally sourced loans booked in 3Q 23

96% of 3Q 23 digital originations were 600+ FICO vs. 83% in 3Q 19

10