Regional Management Corp. Provides Business Update - Seite 3

• Strong Balance Sheet –We continue to operate with a conservative leverage ratio. As of March 31, 2020, we had a funded debt-to-equity ratio of 3.1x, with $251.4 million in stockholders’ equity. Including our March 31, 2020 allowance for credit losses of $142.4 million, we have $393.8 million of capacity to absorb losses while still maintaining positive stockholders’ equity. In addition, we expect to generate further margin this year to absorb losses.

• Ample Liquidity – Our liquidity profile remains strong as we proactively diversified our funding over the past few years in anticipation of a shift in the credit cycle. As of May 31, 2020, we had $128 million of cash on hand and immediate availability to draw down cash from our revolving credit facilities, and $454 million of unused capacity on our various credit facilities (subject to the borrowing base). We do not believe that we will require access to the securitization market through 2021. In summary, we believe that we have more than adequate liquidity to support the fundamental operations of our business throughout the COVID-19 pandemic.

While we fully expect the pace of economic recovery to be uneven as states begin to reopen, we are confident that we will successfully manage through this period, address any challenges that arise, and position ourselves to take advantage of growth opportunities as the economy begins to stabilize and expand.

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 368 branch locations across 11 states in the Southeastern, Southwestern, Mid-Atlantic, and Midwestern United States, as of March 31, 2020. 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 visit www.RegionalManagement.com.