Regional Management Corp. Provides Business Update as of August 31, 2020 - Seite 2

• We continue to operate with a conservative leverage ratio. As of August 31, 2020, we had a funded debt-to-equity ratio of 2.5x.
• Our $142.0 million allowance for credit losses as of June 30, 2020, compares favorably to our 30+ day contractual delinquency of $47.8 million as of August 31, 2020, and provides ample coverage to absorb an increase in delinquencies and credit losses associated with COVID-19.
• As of August 31, 2020, we had $173 million of cash on hand and immediate availability to draw down cash from our revolving credit facilities, and $472 million of unused capacity on our various credit facilities (subject to the borrowing base). We continue to believe that we have more than adequate liquidity to support the fundamental operations of our business throughout the COVID-19 pandemic.

Other Third Quarter Updates

• We are currently marketing a new securitization transaction (RMIT 2020-1), which we expect to close before the end of September. We intend to use a portion of the proceeds from the 2020-1 securitization to repay and satisfy all outstanding obligations associated with our first securitization transaction closed in 2018 (RMIT 2018-1). As a result, in September 2020, we will record $0.7million of interest expense due to the acceleration of the amortization of debt issue costs related to the RMIT 2018-1 securitization. Inclusive of this charge and the interest expense attributable to our recent loan portfolio growth, we expect third quarter interest expense to be approximately $9.8 million.

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 June 30, 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.