Regional Management Corp. Leases Disclosure
Note 7. Leases
The Company maintains lease agreements related to its branch network and for its corporate headquarters. The branch lease agreements range from to seven years and generally contain options to extend from to five years. The corporate headquarters lease agreement is for eleven years and contains options to extend for ten years. All of the Company’s lease agreements are considered operating leases. None of the Company’s lease payments are dependent on an index that may change after the commencement date.
The Company’s rent expense for the periods indicated is as follows:
|
|
Year Ended December 31, |
|
|||||||||
Dollars in thousands |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating leases |
|
$ |
13,136 |
|
|
$ |
11,526 |
|
|
$ |
10,587 |
|
Short-term leases |
|
|
186 |
|
|
|
221 |
|
|
|
447 |
|
Total |
|
$ |
13,322 |
|
|
$ |
11,747 |
|
|
$ |
11,034 |
|
The Company’s weighted-average remaining lease term and discount rate for the periods indicated are as follows:
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Weighted-average remaining lease term (in years) |
|
|
5.3 |
|
|
|
5.1 |
|
Weighted-average discount rate |
|
|
6.5 |
% |
|
|
6.2 |
% |
Future minimum lease payments on the Company’s lease liabilities are as follows:
Dollars in thousands |
|
December 31, 2025 |
|
|
2026 |
|
$ |
12,394 |
|
2027 |
|
|
11,677 |
|
2028 |
|
|
8,818 |
|
2029 |
|
|
6,830 |
|
2030 |
|
|
5,092 |
|
Thereafter |
|
|
10,152 |
|
Total |
|
|
54,963 |
|
Present value adjustment |
|
|
(8,995 |
) |
Lease liability |
|
$ |
45,968 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Mar 4, 2022 | |
| 2015 | Feb 23, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.