<SEC-DOCUMENT>0001193125-18-195787.txt : 20180618
<SEC-HEADER>0001193125-18-195787.hdr.sgml : 20180618
<ACCEPTANCE-DATETIME>20180618171534
ACCESSION NUMBER:		0001193125-18-195787
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180618
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180618
DATE AS OF CHANGE:		20180618

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Regional Management Corp.
		CENTRAL INDEX KEY:			0001519401
		STANDARD INDUSTRIAL CLASSIFICATION:	PERSONAL CREDIT INSTITUTIONS [6141]
		IRS NUMBER:				570847115
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35477
		FILM NUMBER:		18905376

	BUSINESS ADDRESS:	
		STREET 1:		979 BATESVILLE ROAD
		STREET 2:		SUITE B
		CITY:			GREER
		STATE:			SC
		ZIP:			29651
		BUSINESS PHONE:		864-448-7000

	MAIL ADDRESS:	
		STREET 1:		979 BATESVILLE ROAD
		STREET 2:		SUITE B
		CITY:			GREER
		STATE:			SC
		ZIP:			29651
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d533017d8k.htm
<DESCRIPTION>8-K
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<TITLE>8-K</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:14pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:14pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM <FONT STYLE="white-space:nowrap">8-K</FONT> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CURRENT REPORT </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant
to Section&nbsp;13 or 15(d) </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>of the Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Date of Report (Date of earliest event reported): June&nbsp;18, 2018 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>Regional Management Corp. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of registrant as specified in its charter) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" ALIGN="center">


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<TD VALIGN="top" ALIGN="center"><B>Delaware</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B><FONT STYLE="white-space:nowrap">001-35477</FONT></B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B><FONT STYLE="white-space:nowrap">57-0847115</FONT></B></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State or other jurisdiction</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>of incorporation)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Commission</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>File Number)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(IRS Employer</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification No.)</B></P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>979 Batesville Road, Suite B </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Greer, South Carolina 29651 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Address of principal executive offices) (zip code) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(864) <FONT STYLE="white-space:nowrap">448-7000</FONT> </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Registrant&#146;s telephone number, including area code) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Not Applicable </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Former
name or former address, if changed since last report.) </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Check the appropriate box below if the Form <FONT STYLE="white-space:nowrap">8-K</FONT> filing
is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Soliciting material pursuant to Rule <FONT STYLE="white-space:nowrap">14a-12</FONT> under the Exchange Act (17 CFR <FONT STYLE="white-space:nowrap">240.14a-12)</FONT> </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="white-space:nowrap">Pre-commencement</FONT> communications pursuant to Rule <FONT STYLE="white-space:nowrap">14d-2(b)</FONT> under the Exchange Act (17 CFR
<FONT STYLE="white-space:nowrap">240.14d-2(b))</FONT> </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="white-space:nowrap">Pre-commencement</FONT> communications pursuant to Rule <FONT STYLE="white-space:nowrap">13e-4(c)</FONT> under the Exchange Act (17 CFR
<FONT STYLE="white-space:nowrap">240.13e-4(c))</FONT> </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Indicate by check mark whether the registrant is an emerging growth company as
defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this chapter) or Rule <FONT STYLE="white-space:nowrap">12b-2</FONT> of the Securities Exchange Act of 1934 <FONT STYLE="white-space:nowrap">(&#167;240.12b-2</FONT> of this chapter).
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">Emerging growth company &#9744; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">If an
emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section&nbsp;13(a) of the Exchange Act.
&#9744; </P>

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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>Item&nbsp;7.01.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Regulation FD Disclosure. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In connection with the private offering of the Notes (as
defined below) described under Item 8.01 of this Current Report on Form <FONT STYLE="white-space:nowrap">8-K,</FONT> the Company is disclosing certain information to certain potential investors in a preliminary private placement memorandum, dated
June&nbsp;18, 2018 (the &#147;<U>Private Placement Memorandum</U>&#148;). Pursuant to Regulation FD, excerpts of the Private Placement Memorandum are attached to this Current Report on Form <FONT STYLE="white-space:nowrap">8-K</FONT> as Exhibit
99.1, which is incorporated herein by reference. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This Form <FONT STYLE="white-space:nowrap">8-K,</FONT> including Exhibit 99.1, may
contain certain forward-looking statements that are based largely on the Company&#146;s current expectations. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results and achievements to differ
materially from those expressed or implied in the forward-looking statements. For more information about these forward-looking statements and the related risks, please refer to the section entitled &#147;Forward-Looking Statements&#148; in the
Company&#146;s Annual Report on Form <FONT STYLE="white-space:nowrap">10-K.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The information set forth in this Item 7.01 of this
Current Report on Form <FONT STYLE="white-space:nowrap">8-K,</FONT> including Exhibit 99.1 hereto, shall not be deemed &#147;filed&#148; for purposes of Section&nbsp;18 of the Securities Exchange Act of 1934, as amended (the &#147;<U>Exchange
Act</U>&#148;), or otherwise subject to the liabilities of that section. The information in this Item 7.01 of this Current Report on Form <FONT STYLE="white-space:nowrap">8-K</FONT> shall not be deemed to be incorporated by reference in any filing
under the Securities Act of 1933, as amended (the &#147;<U>Securities Act</U>&#148;), or the Exchange Act, except as expressly set forth by specific reference in such filing. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>Item&nbsp;8.01</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Other Events. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On June&nbsp;18, 2018, Regional Management Corp. (the
&#147;<U>Company</U>&#148;) commenced a private offering of $150&nbsp;million of asset-backed notes (the &#147;<U>Notes</U>&#148;), the closing of which is subject to market conditions and other factors. To facilitate the private offering, the
Company formed Regional Management Receivables, III, LLC, a Delaware limited liability company, to act as the depositor (the &#147;<U>Depositor</U>&#148;), and the Depositor formed Regional Management Issuance Trust
<FONT STYLE="white-space:nowrap">2018-1,</FONT> a Delaware statutory trust (the &#147;<U>Issuer</U>&#148;). The Depositor and the Issuer are special purpose subsidiaries of the Company. The Notes will be issued by the Issuer. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Notes will be offered in the United States to qualified institutional buyers under Rule 144A under the Securities Act. The Notes will not
be registered under the Securities Act or any state securities laws, and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The information in this
Form <FONT STYLE="white-space:nowrap">8-K,</FONT> including Exhibit 99.1, does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or
other jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>Item&nbsp;9.01.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Financial Statements and Exhibits. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">(d) Exhibits. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Exhibit<BR>No.</B></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Description</B></P></TD></TR>


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<TD VALIGN="top" NOWRAP>99.1</TD>
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<TD VALIGN="top"><A HREF="d533017dex991.htm">Excerpts from the Preliminary Private Placement Memorandum, dated June&nbsp;18, 2018.</A></TD></TR>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURES </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" COLSPAN="3">Regional Management Corp.</TD></TR>
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<TD VALIGN="top">Date: June&nbsp;18, 2018</TD>
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<TD VALIGN="top">By:</TD>
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<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Donald E. Thomas</TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Donald E. Thomas</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Executive Vice President and
Chief Financial Officer</P></TD></TR>
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<DOCUMENT>
<TYPE>EX-99.1
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<FILENAME>d533017dex991.htm
<DESCRIPTION>EX-99.1
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 99.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>REGIONAL CONSUMER LOAN BUSINESS </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional Management Corp. (collectively with its subsidiaries, &#147;<B>Regional</B>&#148;) was incorporated in South Carolina in 1987,
converted into a Delaware corporation in 2011, and closed its initial public offering in 2012. Its common stock is listed on the New York Stock Exchange under the symbol RM. The following is a brief description of Regional&#146;s consumer loan
business, including a general description of the underwriting and servicing policies and procedures customarily and currently employed for large loans, as set forth in the Credit and Collection Policy. There can be no assurance that Regional&#146;s
consumer loan business will not change over time. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Business Overview </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional is a diversified consumer finance company providing an array of loan products primarily to customers with limited access to consumer
credit from banks, thrifts, credit card companies, and other traditional lenders. Regional began operations in 1987 with four branches in South Carolina and has expanded its branch network to 341 locations (or &#147;branches&#148;) with
approximately 363,300 active accounts primarily across Alabama, Georgia, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Virginia as of March&nbsp;31, 2018. Regional also intends to expand its operations to the states of
Missouri and Wisconsin in late 2018. Most of Regional&#146;s 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&#146;s loans are sourced through its multiple channel platform, which includes its branches, direct mail campaigns, retailers, digital partners, and consumer website. Regional operates an integrated branch model in which nearly all loans,
regardless of origination channel, are serviced through its branch network, providing Regional with frequent <FONT STYLE="white-space:nowrap">in-person</FONT> contact with its customers. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In the consumer finance industry in which Regional operates, customers may be described as prime or near-prime (more creditworthy) at one
extreme and <FONT STYLE="white-space:nowrap">non-prime</FONT> or <FONT STYLE="white-space:nowrap">sub-prime</FONT> (less creditworthy) at the other. Regional&#146;s customers are typically considered <FONT STYLE="white-space:nowrap">non-prime</FONT>
and require significantly higher levels of servicing than prime customers. As a result, customers are charged higher interest rates to compensate Regional for the related credit risks and servicing costs. However, providers of installment loans,
such as Regional, generally offer loans with longer terms and lower interest rates than other alternatives available to underbanked consumers, such as title, payday, and pawn lenders. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional&#146;s product offerings include: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><I>Small Loans </I>&#150; Regional offers small installment loans with cash proceeds to the customer ranging from $500 to $2,500, with terms of up to 48 months. As of March&nbsp;31, 2018, Regional had approximately
250,400 small loans outstanding representing $360.5&nbsp;million in finance receivables, or an average of approximately $1,400 per loan. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><I>Large Loans </I>&#150; Regional offers large installment loans with cash proceeds to the customer ranging from $2,501 to $20,000, with terms of between 18 and 60 months. As of March&nbsp;31, 2018, Regional had
approximately 84,800 large loans outstanding representing $363.9&nbsp;million in finance receivables, or an average of approximately $4,300 per loan. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><I>Automobile Loans </I>&#150; Through November 2017, Regional offered automobile loans of up to $27,500, generally with terms of between 36 and 72 months, that are secured by the purchased vehicle. As of March&nbsp;31,
2018, Regional had approximately 6,000 automobile loans outstanding representing $48.7&nbsp;million in finance receivables, or an average of approximately $8,050 per loan. Regional does not intend to originate new automobile loans in the future.
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><I>Retail Loans </I>&#150; Regional offers indirect retail loans of up to $7,500, with terms of between 6 and 48 months, which are secured by the purchased items. As of March&nbsp;31, 2018, Regional had approximately
22,000 retail loans outstanding representing $31.9&nbsp;million in finance receivables, or an average of approximately $1,450 per loan. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">1 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Large Loan Product </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional&#146;s large loan product is reserved for higher credit quality customers who meet more stringent underwriting requirements than those
applied to small loan applicants. As a result, Regional generally charges a lower annual percentage rate on its large loans than on its small loans, with the substantial majority of large loans having an annual percentage rate at or below 36%.
Regional originates its large loans in its branch network, via its direct mail programs, and to a lesser extent, through its digital partners. Large loans typically are secured by <FONT STYLE="white-space:nowrap">non-essential</FONT> household goods
and/or a lien on a vehicle, which may be an automobile, motorcycle, boat, or <FONT STYLE="white-space:nowrap">all-terrain</FONT> vehicle. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">A majority of Regional&#146;s large loan borrowers are sourced from existing or former borrowers. In these cases, the performance of the
previous or existing relationship provides Regional with additional information about the borrower&#146;s likelihood of repayment and enables Regional to incorporate that experience into the underwriting process. Renewing small loans and large loans
for current borrowers who have demonstrated their ability and willingness to repay into new and larger loans is an important part of Regional&#146;s branch lending model. Renewal loans to existing customers primarily result from branch-based
solicitation efforts and direct mail campaigns to qualified customers. Regional may also renew a past due loan, including where the borrower meets Delinquent Renewal underwriting criteria. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Demographically, as of March&nbsp;31, 2018, Regional&#146;s average large loan customer was approximately 53 years old and had an average FICO<SUP
STYLE="font-size:85%; vertical-align:top">&reg;</SUP> score of 626, and for loans originated in the first quarter of 2018, Regional&#146;s average large loan customer had an average household income of approximately $52,000. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Optional Ancillary Product Offerings </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional also offers its customers various optional payment and collateral protection insurance products. Regional&#146;s primary insurance
products include optional credit life insurance, accident and health insurance, involuntary unemployment insurance, and personal property insurance. The insurance products are optional and not a condition of the loan, and Regional does not sell
insurance to <FONT STYLE="white-space:nowrap">non-borrowers.</FONT> Regional&#146;s insurance products, including the types of products offered and their terms and conditions, vary from state to state in compliance with applicable laws and
regulations. Premiums and other charges for insurance products are set at or below authorized statutory rates and are stated separately in Regional&#146;s disclosures to its customers, as required by the federal Truth in Lending Act and by various
applicable state laws. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Credit life insurance provides for the payment in full of the borrower&#146;s credit obligation to the lender in
the event of the borrower&#146;s death and, in some states, may provide a payment to a secondary beneficiary listed by the borrower. Credit accident and health insurance provides for the repayment of certain loan installments to the lender that come
due during an insured&#146;s period of income interruption resulting from disability from illness or injury. Involuntary unemployment insurance provides for repayment of certain loan installments in the event the borrower is no longer employed as
the result of a qualifying event, such as a layoff or reduction in workforce. Regional requires that customers maintain property insurance on any personal property securing loans and offers customers the option of providing proof of such insurance
purchased from a third party (such as homeowners or renters insurance) in lieu of purchasing property insurance from Regional. Regional also requires proof of insurance on any vehicles securing loans, and in select markets, Regional offers vehicle
single interest insurance on vehicles used as collateral on small and large loans. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">All customers purchasing these types of insurance from
Regional are required to sign multiple statements affirming that they understand that their purchase of insurance is optional and not a condition of the loan. In addition, a borrower may cancel purchased insurance at any time during the life of the
loan, including in connection with an early payoff or loan refinancing. Borrowers who cancel within thirty (30)&nbsp;days of the date of purchase receive a full refund of the insurance premium, and borrowers who cancel thereafter receive a refund of
the unearned portion of the insurance premium. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Apart from the various optional payment and collateral protection insurance products that
Regional offers to its customers, on certain loans, Regional also collects a fee from its customers and in turn purchases <FONT STYLE="white-space:nowrap">non-file</FONT> insurance from an unaffiliated insurance company for Regional&#146;s benefit
in lieu of recording and perfecting its security interest in personal property collateral. <FONT STYLE="white-space:nowrap">Non-file</FONT> insurance protects Regional from credit losses where, following an event of
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


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default, Regional is unable to take possession of personal property collateral because Regional&#146;s security interest is not perfected (for example, in certain instances where a customer files
for bankruptcy). In such circumstances, <FONT STYLE="white-space:nowrap">non-file</FONT> insurance generally will pay an amount equal to the lesser of the loan balance or the collateral value. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional markets and sells insurance policies as an agent of an unaffiliated insurance company and then remits to the unaffiliated insurance
company the premiums Regional collects, net of refunds on prepaid loans and net of commission on new business. The unaffiliated insurance company then cedes to Regional&#146;s wholly-owned insurance subsidiary, RMC Reinsurance, Ltd., the net
insurance premium revenue and the associated insurance claims liability for all insurance products, including <FONT STYLE="white-space:nowrap">non-file</FONT> insurance. In accepting the premium revenue and associated claims liability, RMC
Reinsurance acts as reinsurer for all insurance products that Regional sells to its customers and for the <FONT STYLE="white-space:nowrap">non-file</FONT> insurance that Regional purchases. RMC Reinsurance pays the unaffiliated insurance company a
ceding fee for the continued administration of all insurance products. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In addition, Regional offers an &#147;Auto Plus Plan&#148; auto
club product that is administered and serviced through a third-party provider. The product generally provides certain automobile, home, travel, and other services and benefits to customers, including emergency towing and roadside assistance,
emergency locksmith service, automobile repair reimbursement, stolen car expense benefit, automobile insurance deductible reimbursement, limited legal services, and various travel and other discounts. As with the optional insurance products offered
by Regional, any customer purchasing an Auto Plus Plan acknowledges that the purchase is optional and not a condition of the loan and that the plan may be cancelled within 30 days for a full refund. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Marketing Channels </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional generates
loans from new, current, and former customers through a variety of channels, including its branch network, centrally-managed direct mail program, retailers, and digital partners. Regional&#146;s direct mail campaigns include <FONT
STYLE="white-space:nowrap">pre-screened</FONT> convenience check and <FONT STYLE="white-space:nowrap">pre-qualified</FONT> mailings, as well as <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">non-pre-screened</FONT></FONT>
invitations to apply. Direct mail campaigns are launched throughout the year, but are weighted to coincide with seasonal consumer demand and new branch openings. Collectively, these direct mail campaigns enable Regional to market its products to
millions of potential customers in a targeted, cost-effective manner. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Direct mail campaigns include convenience checks sent to <FONT
STYLE="white-space:nowrap">pre-screened</FONT> individuals who are able to enter into a loan by cashing or depositing these checks, thereby agreeing to the terms of the loan as prominently set forth on the check and accompanying disclosures. Each
individual that Regional solicits for a convenience check loan has been <FONT STYLE="white-space:nowrap">pre-screened</FONT> through a major credit bureau against Regional&#146;s underwriting criteria. In addition to screening each potential
convenience check recipient&#146;s credit score and bankruptcy history, Regional also uses a proprietary model that considers multiple credit bureau attributes to optimize the credit quality and response likelihood of potential recipients. When a
borrower enters into a loan by cashing or depositing a convenience check, Regional&#146;s branch personnel make a welcome call in an effort to gather additional information on the borrower to assist in servicing the loan and to offer additional
products to meet the borrower&#146;s financing needs. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional has also developed a consumer website and has partnered with digital lead
generators to promote its products and to source loan applications via the Internet. Prospective customers are able to <FONT STYLE="white-space:nowrap">pre-qualify</FONT> for one of Regional&#146;s loan products through its website and are then
routed to the nearest branch for further processing and loan closing. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional&#146;s multiple channel platform provides it with a
competitive advantage by giving Regional various mechanisms to attract new customers, <FONT STYLE="white-space:nowrap">re-capture</FONT> former customers, and deepen relationships with existing customers. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Branch Network and Employees </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional&#146;s branch network, with 341 locations across nine (9)&nbsp;states as of March&nbsp;31, 2018, serves as the foundation of its
multiple channel platform and the primary point of contact with its approximately 363,000 active accounts. The substantial majority of Regional&#146;s loans are originated by its branch employees, and nearly all loans, regardless of origination
channel, are serviced through Regional&#146;s branch network. By integrating loan origination and loan servicing at the branch level, Regional&#146;s employees are able to establish and maintain relationships with their
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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customers throughout the life of a loan. Regional believes that this frequent-contact, relationship-driven lending model provides greater insight into potential payment difficulties, improves
credit performance, and leads to additional lending opportunities. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional has six (6)&nbsp;state vice presidents (each, a
&#147;<B>State Vice President</B>&#148;) to oversee branch operations in its nine-state footprint. Several levels of management monitor and supervise the operations of each of its branches. Each branch is under the supervision of the branch manager
(the &#147;<B>Branch Manager</B>&#148;), who in turn reports to a district supervisor (each, a &#147;<B>District Supervisor</B>&#148;). The Branch Manager oversees operations of the branch and is responsible for approving loan applications within
the defined guidelines set forth in Regional&#146;s Credit and Collection Policy. The Branch Manager is also directly responsible for the performance of his or her branch. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">As of March&nbsp;31, 2018, Branch Managers, on average, have been with Regional for more than five (5)&nbsp;years. Each branch is generally
staffed with two (2)&nbsp;to six (6)&nbsp;employees, including one (1)&nbsp;or two (2)&nbsp;assistant managers and, in many branches, one (1)&nbsp;or more customer service representatives. Assistant managers and customer service representatives take
and process loan applications, process payments, assist with marketing activities, prepare operational reports, contact past due customers, and conduct other collection activities. Larger volume branches may employ additional assistant managers and
customer service representatives. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional&#146;s District Supervisors are generally responsible for the performance of between six
(6)&nbsp;and eleven (11)&nbsp;branches in their districts. Each State Vice President is responsible for the performance of all of the branches in his or her state or region. As of March&nbsp;31, 2018, Regional&#146;s State Vice Presidents averaged
more than twenty-eight (28)&nbsp;years of industry experience and more than seven (7)&nbsp;years of service at Regional, while its District Supervisors averaged more than <FONT STYLE="white-space:nowrap">twenty-one</FONT> (21)&nbsp;years of industry
experience and six (6)&nbsp;years of service with Regional. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">New employees must complete a comprehensive training curriculum that focuses
on the company- and position-specific competencies necessary to be successful and compliant in their role. The training includes a blended approach, utilizing eLearning modules, <FONT STYLE="white-space:nowrap">hands-on</FONT> exercises, webinars,
and assessments. Training content is focused on Regional&#146;s operating policies and procedures, as well as several key compliance areas. Incentive compensation for new employees is contingent upon the successful and timely completion of the
required new hire training curriculum. All current employees also are required to complete annual compliance training and <FONT STYLE="white-space:nowrap">re-certification.</FONT> Additional management and developmental training is provided for
those employees identified as having high potential for advancement. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Loan Origination and Servicing System </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In 2016, Regional entered into an agreement with Nortridge to transition to the Nortridge loan origination and servicing platform. From January
2016 to February 2018, Regional conducted a <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">state-by-state</FONT></FONT> phased implementation of the Nortridge platform in each of its states of operation. As of February 2018, all
of Regional&#146;s branches operate using the Nortridge platform. Prior to its use of Nortridge, Regional serviced its loan portfolio using a software package developed and owned by ParaData Financial Systems (&#147;<B>ParaData</B>&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional utilizes the Nortridge platform both to originate loans and to service its loan portfolio, and has invested in customizing the
Nortridge platform to meet its needs based upon its specific products, processes, and reporting requirements. The Nortridge custom decision engine utilizes application information and a credit report detailing the applicant&#146;s credit history to
generate an initial credit decision and to guide Regional&#146;s branch employees through the loan origination process to the final credit decision. Throughout the life of the loan, Regional employees utilize Nortridge to, among other things, enter
payments, generate collection queues, and log collection activity. Nortridge also facilitates electronic and recurring payments, automated text messaging, and customer account access through a customer portal. Nortridge logs and maintains, within
Regional&#146;s centralized information systems, a permanent record of the loan origination and servicing approvals and processes, and permits all levels of branch and centralized management to review the individual and collective performance of all
branches for which they are responsible on a daily basis. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Delinquency and Credit Loss Experience </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The following table sets forth certain unaudited information, including delinquency and credit loss experience, of Regional with respect to its
large loan portfolio for the periods ending as specified below, excluding those types of large loans identified in footnote&nbsp;1 to the table. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="54%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="26" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Portfolio Overview (1) (2)</B><br><B>(Unaudited)</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="22" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Year Ended December&nbsp;31,</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Quarter<BR>Ended<BR>March&nbsp;31,</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom"><B></B><I>$ in thousands</I><B></B></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>2012</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>2013</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>2014</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>2015</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>2016</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>2017</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>2018 (3)</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Number of loans outstanding</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">10,618</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">10,273</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">11,341</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">35,991</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">49,207</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">70,233</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">74,220</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Unpaid net balance of loans (4)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">39,078</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">39,415</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">43,378</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">142,638</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">204,229</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">309,655</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">327,351</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Average unpaid net balance of loans</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">36,357</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">38,231</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">39,565</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">95,349</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">178,075</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">247,065</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">322,520</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Delinquency</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">30 to 59 days</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,173</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,044</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">998</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,977</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,201</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">5,144</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,670</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">60 to 89 days</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">512</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">438</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">437</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,098</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,331</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,977</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,339</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">90 days and over</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,036</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">977</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">519</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,566</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,296</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,506</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,845</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Delinquency as a % of unpaid net balance</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">30 to 59 days</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3.0</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2.6</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2.3</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1.4</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1.6</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1.7</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1.4</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">60 to 89 days</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1.3</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1.1</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1.0</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">0.8</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1.1</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1.3</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1.0</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">90 days and over</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2.7</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2.5</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1.2</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1.1</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2.1</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2.1</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2.1</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Credit losses (including <FONT STYLE="white-space:nowrap">non-file</FONT> claim receipts)</P></TD>

<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,106</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,684</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,159</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,647</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">8,073</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">15,743</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,991</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><FONT STYLE="white-space:nowrap">Non-file</FONT> claim receipts (5)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">199</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">340</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">457</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,651</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,792</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,237</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,192</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Credit losses (excluding <FONT STYLE="white-space:nowrap">non-file</FONT> claim
receipts)</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"><B>$</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>2,306</B></TD>
<TD NOWRAP VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>$</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>2,024</B></TD>
<TD NOWRAP VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>$</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>2,616</B></TD>
<TD NOWRAP VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>$</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>4,298</B></TD>
<TD NOWRAP VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>$</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>12,865</B></TD>
<TD NOWRAP VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>$</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>18,980</B></TD>
<TD NOWRAP VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>$</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>6,184</B></TD>
<TD NOWRAP VALIGN="bottom"><B>&nbsp;</B></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Credit losses as a % of avg unpaid net balance (including
<FONT STYLE="white-space:nowrap">non-file</FONT> claim receipts) (6)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5.8</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4.4</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5.5</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2.8</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4.5</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6.4</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6.2</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Credit losses as a % of avg unpaid net balance (excluding
<FONT STYLE="white-space:nowrap">non-file</FONT> claim receipts) (6)</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>6.3</B></TD>
<TD NOWRAP VALIGN="bottom"><B>%&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>5.3</B></TD>
<TD NOWRAP VALIGN="bottom"><B>%&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>6.6</B></TD>
<TD NOWRAP VALIGN="bottom"><B>%&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>4.5</B></TD>
<TD NOWRAP VALIGN="bottom"><B>%&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>7.2</B></TD>
<TD NOWRAP VALIGN="bottom"><B>%&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>7.7</B></TD>
<TD NOWRAP VALIGN="bottom"><B>%&nbsp;</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>&nbsp;</B></TD>
<TD VALIGN="bottom" ALIGN="right"><B>7.7</B></TD>
<TD NOWRAP VALIGN="bottom"><B>%&nbsp;</B></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Weighted-average APR</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">25.9</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">27.2</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">27.9</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">28.6</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">29.5</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">29.2</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">29.1</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
</TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(1)</TD>
<TD ALIGN="left" VALIGN="top">The data in the table includes only large loans having an APR less than or equal to 36.00%, and excludes any large loan originated through a convenience check campaign or resulting from the renewal of a delinquent auto
purchase loan. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(2)</TD>
<TD ALIGN="left" VALIGN="top">Regional began actively marketing its large loan product around November 2014 with new underwriting guidelines and standards. Prior to that time, large loans were made generally to small loan customers with a need for a
larger loan. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(3)</TD>
<TD ALIGN="left" VALIGN="top">Credit losses as a percentage of unpaid net balances for the quarter ended March&nbsp;31, 2018 are annualized. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(4)</TD>
<TD ALIGN="left" VALIGN="top">The unpaid net balance generally reflects the outstanding balance of the loan, less unearned interest, fees, and charges. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(5)</TD>
<TD ALIGN="left" VALIGN="top">See &#147;<I>Regional Consumer Loan Business&#151;Optional Ancillary Product Offerings</I>&#148; and &#147;<I>Risk Factors&#151;Risks Relating to Regional&#146;s Business and Operations&#151;Regional&#146;s insurance
operations are subject to a number of risks and uncertainties, including claims</I>&#148; in this private placement memorandum </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(6)</TD>
<TD ALIGN="left" VALIGN="top">The data does not reflect recoveries following <FONT STYLE="white-space:nowrap">charge-off.</FONT> </TD></TR></TABLE>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>UNDERWRITING STANDARDS </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>General
</B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The following is a brief description of the underwriting policies and procedures used by Regional to underwrite large loans.
Historically, Regional has modified these underwriting policies and procedures from time to time in order to comply with state and federal legal requirements and in other manners designed to enhance its large loan business. There can be no assurance
that these underwriting policies and procedures will not change materially over time. As Regional identifies new processes and tools that may increase the accuracy and effectiveness of the underwriting, servicing, and collections process, Regional
may implement such processes and tools. In addition, the </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">5 </P>


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underwriting policies and procedures described below are intended to be general descriptions of the policies and procedures that are generally applied in most cases, but there may be cases in
which large loans are approved notwithstanding deviations or variances (whether intentional or unintentional) from the policies and procedures described below. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Underwriting standards are generally applied by Regional to evaluate the applicant&#146;s credit standing, repayment ability, and the value
and adequacy of collateral for a large loan. The underwriting standards serve as guidelines pursuant to which an applicant and collateral may be evaluated, and as such, there may be deviations from the underwriting standards described below in the
approval of large loans. Regional considers numerous factors in evaluating a potential customer&#146;s creditworthiness, such as <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">debt-to-income</FONT></FONT> ratios, length of current
employment, duration at residence, and a credit report detailing the applicant&#146;s credit history. Regional&#146;s underwriting standards focus on the borrowers&#146; ability to affordably make loan payments out of their discretionary income,
with the value of pledged collateral serving as a credit enhancement rather than the primary underwriting criterion. In the event of any renewal of an existing loan, other than pursuant to Delinquent Renewal underwriting criteria, the renewal loan
would generally be subject to the same underwriting policies and procedures as any origination of a new large loan to a new borrower. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Loan Application
</B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">An applicant applying for a large loan is required to complete a loan application. The application is designed to provide Regional
with pertinent information regarding the applicant&#146;s assets, liabilities, income, credit history, employment history, and personal information, which Regional uses to assess the applicant&#146;s creditworthiness and ability to repay a loan.
With respect to present and former borrowers, this review would include an evaluation of Regional&#146;s prior experience with the applicant. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Applicants may complete the loan application through a local branch or over the phone, with Regional employees entering application
information directly into Nortridge. Regional has also developed a consumer website and has partnered with digital lead generators to promote its products and source loan applications via the Internet. Prospective customers are able to <FONT
STYLE="white-space:nowrap">pre-qualify</FONT> for one of Regional&#146;s loan products through its website and are then routed to the nearest branch for further processing. In certain circumstances, Regional will permit a <FONT
STYLE="white-space:nowrap">co-applicant</FONT> and, in these instances, Regional generally takes the same actions for the <FONT STYLE="white-space:nowrap">co-applicant</FONT> as it does for a single applicant. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Credit Report </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional requires a credit
report on each applicant for a large loan from a nationally-recognized credit reporting bureau. During the application process, Regional provides certain disclosures to the applicant, secures the applicant&#146;s authorization to obtain the
applicant&#146;s full credit report, and then obtains the credit report from the credit bureau through the Nortridge system. The credit report typically contains information relating to the applicant&#146;s credit history with local and national
merchants and lenders, any installment debt obligations of the applicant, and foreclosure, bankruptcy, repossession, suit, or judgment against the applicant. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Borrower Identification and Anti-Fraud Policies </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">As part of the loan application process for large loans, the applicant is required to provide (i)&nbsp;one (1) form of primary identification
consisting of a valid, government-issued photo identification card, which may include the borrower&#146;s driver&#146;s license, state-issued identification card, military identification, or passport (ii)&nbsp;proof of residency for the current or
previous month, which may include the borrower&#146;s lease agreement, valid auto insurance card or home owner&#146;s insurance, or a recent bill or credit card statement dated within thirty (30)&nbsp;days, (iii) proof of income, which may include a
recent bank statement, pay stub dated within thirty (30)&nbsp;days, leave and earning statement, tax return, or <FONT STYLE="white-space:nowrap">W-2,</FONT> and (iv)&nbsp;a least three (3)&nbsp;references. Regional branch employees can verify each
applicant&#146;s current residence by checking with landlords or leasing agents, and can verify each applicant&#146;s employment though telephone checks with employers and other employment references. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In the event a Regional branch employee receives an initial active duty, credit freeze, or fraud
alert from the credit bureau during the application process, the employee is not permitted to extend credit to the applicant unless the applicant&#146;s identity, address, employment, and credit information can be verified. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Income and Employment Verification </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Loans
are generally originated based on the full income documentation required by the Credit and Collection Policy in effect at the time of origination of the loans. The documentation that the Credit and Collection Policy requires to verify income
generally includes the following: (i)&nbsp;self-employed earners must provide evidence of self-employment for the last four (4)&nbsp;years and either the applicant&#146;s tax returns for the prior two (2)&nbsp;years or bank statements for the prior
three (3)&nbsp;months, (ii) fixed wage earners must provide either a copy of their most recent paycheck stub, a completed employment verification form, or bank statements for the prior three (3)&nbsp;months, (iii)
<FONT STYLE="white-space:nowrap">non-wage</FONT> earners generally must provide a copy of their most recent signed bank statements verifying regular direct deposits and, in some cases, additional supporting information, and (iv)&nbsp;rental income
earners must provide a copy of an unexpired rental agreement and the applicant&#146;s tax returns for the prior two (2)&nbsp;years. Sources of income not supported by the aforementioned documentation are generally not given credit in the
underwriting process absent an exception approved by a District Supervisor, State Vice President, or centralized underwriting team member. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional may verify employment through a review of the applicant&#146;s recent tax returns, other tax forms (<I>e.g.</I>, <FONT
STYLE="white-space:nowrap">W-2</FONT> forms), current pay stubs, or bank statements. If Regional cannot verify employment in this manner, Regional may contact the applicant&#146;s employer to verify employment status (<I>e.g.</I>, full-time or
part-time), job title, the length of employment of the applicant with such employer, and the applicant&#146;s current salary paid by such employer. If an applicant is self-employed, Regional may use recent tax returns, bank statements, and other
relevant information to verify the applicant&#146;s self-employed status before a large loan is approved. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">Debt-to-Income</FONT></FONT> Ratio </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional evaluates whether an applicant has sufficient income to support
the debt service for a large loan by calculating the applicant&#146;s <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">&#147;Debt-To-Income&#148;</FONT></FONT> (&#147;<B>DTI</B>&#148;) ratio based upon the information made available
to Regional in connection with its underwriting process and, in certain cases described below, as estimated by Regional. An applicant&#146;s DTI ratio represents the applicant&#146;s monthly payment obligations (<I>e.g.</I>, debt payments, housing
expenses, etc., after giving effect to the new monthly debt payment associated with the Regional large loan applied for) expressed as a percentage of the applicant&#146;s gross monthly income; <I>provided</I>, that if an applicant does not have a
monthly housing expense at the time of his or her application, or such monthly housing expense is not verified by Regional, an estimated future monthly housing expense is typically included by Regional in the DTI calculation. The DTI ratio is a
useful tool in assessing the monthly income necessary to service the applicant&#146;s monthly payment obligations. Once calculated, the applicant&#146;s DTI ratio is reviewed against Regional&#146;s underwriting standards, as described herein. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Collateral </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">As part of the application
process, Regional will obtain the borrower&#146;s pledge of collateral as security for the large loan. Acceptable collateral on large loans includes vehicles or other titled assets and <FONT STYLE="white-space:nowrap">non-titled</FONT> personal
property. Regional branch employees will perform an <FONT STYLE="white-space:nowrap">in-person</FONT> appraisal of any vehicle collateral pledged for a large loan using Regional&#146;s multipoint checklist and will use one or more third-party
valuation sources, such as the National Automobile Dealers Association Appraisal Guides, to determine an estimate of the collateral&#146;s value. Regional&#146;s District Supervisors and internal audit teams regularly review collateral documentation
to confirm compliance with its guidelines. Regional perfects all security interests in each pledged vehicle by recording its lien on the title. Regardless of the value of the vehicle or other collateral, Regional&#146;s policies are designed not to
lend in excess of its assessment of the borrower&#146;s ability to repay the large loan. Regional generally only initiates repossession efforts when an account is seriously delinquent, Regional has exhausted other means of collection, and in the
opinion of management, the customer is unlikely to make further payments. Regional sells substantially all repossessed vehicles through sales conducted by independent automobile auction organizations, or to a lesser extent, private sales after the
required post-repossession waiting period. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">7 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Lending Approval Limits </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Lending approval limits for Regional employees are established on an individual basis, subject to limitations based on the employee&#146;s
position. The criteria for determining any single employee&#146;s lending approval limit is based upon such employee&#146;s level of experience and demonstrated lending judgment as evidenced by past performance. Approval limits for each Regional
employee are recommended by the employee&#146;s District Supervisor and State Vice President to Regional&#146;s centralized underwriting team, which then provides final approval of the employee&#146;s lending approval limit and programs the limit
into Nortridge. In addition, the Director of Home Office Credit conducts an annual audit of the lending approval limits set in Nortridge at least once per year. Nortridge will not proceed with a loan closing if the loan amount is greater than the
Nortridge user&#146;s established loan approval authority. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Loan Application Review and Closing </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">When an application is complete and a credit report has been obtained, Regional uses standardized underwriting criteria, including an analysis
called &#147;SACC,&#148; which stands for &#147;Stability, Ability, Credit, and Collateral,&#148; to assess the applicant&#146;s eligibility for a loan product and, if qualified, to determine the loan product best-suited for the applicant&#146;s
needs. The SACC analysis provides for a complete assessment of the applicant&#146;s overall credit history and <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">ability-to-repay,</FONT></FONT> including (i)&nbsp;length of current
employment, duration in the area market, duration at residence, and prior payment history with Regional, if any, <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">(ii)&nbsp;debt-to-income</FONT></FONT> ratio, (iii)&nbsp;credit score,
credit and payment history with other lenders, credit use and inquiries, and fraud alerts, and (iv)&nbsp;type of collateral pledged. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Nortridge contains a custom decision engine that utilizes application information and a credit report detailing the applicant&#146;s credit
history to produce an initial credit decision based on Regional&#146;s underwriting guidelines. Nortridge then guides Regional&#146;s branch employees through the loan origination process, including the entry of financial and collateral information,
and ultimately generates a final credit decision. Where an applicant is declined for credit and a Branch Manager believes that an underwriting exception may be warranted, Regional&#146;s policies allow for further review of the applicant&#146;s
credit application by a centralized underwriting team member, who reviews the credit application, assesses the applicant&#146;s <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">ability-to-repay,</FONT></FONT> and determines whether
to grant an exception. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If an applicant is approved for a loan by an employee having the requisite lending approval authority, the loan is
closed in the branch by a branch employee. All required documentation for large loans generally is reviewed prior to and after the related large loan closing to ensure accuracy, proper completion, and satisfaction of any conditions to closing set
forth in the loan approval. Loan proceeds are delivered to the borrower by delivery of a printed check to the borrower at the loan closing. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Loans originated on the ParaData software platform (prior to conversion to Nortridge) followed a similar underwriting process, including the
use of the SACC assessment, except that ParaData did not have a decision engine that assisted Regional&#146;s branch employees in evaluating the credit application. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Renewals </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Renewals are an important part
of Regional&#146;s business. Renewals are primarily used to expand Regional&#146;s lending relationship with performing customers. However, renewals may also be used as a servicing tool for past due customers, as further described below under
&#147;<I>Servicing Standards&#151;Collection of Past Due Accounts</I>&#148;. Renewals generally are extended to existing borrowers who have demonstrated an ability and willingness to repay amounts owed to Regional. Renewals typically refinance one
or more of the applicable borrower&#146;s loans into a single new loan, which in some cases will be for a larger principal balance than the customer&#146;s original loan, though Regional permits renewals of existing loans at or below the original
loan amount. In connection with any renewal of a loan other than pursuant to Delinquent Renewal underwriting criteria, the proposed new large loan is generally <FONT STYLE="white-space:nowrap">re-underwritten</FONT> using the full credit review
process and underwriting criteria in effect for new borrowers as of the time of such renewal. Regional also requires that the potential renewal loan provide a net tangible benefit to the borrower. The net tangible benefit criteria set forth in the
Credit and Collection Policy requires that the proceeds generated by the renewal loan must not be less than the lesser of either: (i) 10% of the net payoff balance of the renewed loan, or (ii) $100 dollars. If the potential renewal loan does not
meet the net tangible benefit criteria set forth in the preceding sentence, then the </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">8 </P>


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renewal loan application will be denied. Regional also takes into consideration the customer&#146;s performance with Regional during the renewal loan underwriting process. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Compliance with Local, State and Federal Lending Laws </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional maintains robust systems and operational controls in an effort to ensure compliance with applicable federal and state lending laws.
These systems and controls are supported by Regional&#146;s legal, regulatory compliance, and internal audit functions. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SERVICING
STANDARDS </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>General </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The following
is a brief description of the servicing policies and procedures used by Regional to service large loans. Historically, Regional has modified these servicing policies and procedures from time to time in order to comply with state and federal legal
requirements and in other manners designed to improve its servicing and collections outcomes. In addition, as Regional identifies new processes and tools that may increase the accuracy and effectiveness of the servicing and collections process,
Regional may implement some of such processes and tools. There can be no assurance that these policies and procedures will not change materially over time. In addition, the servicing policies and procedures described below are intended to be general
descriptions of the policies and procedures that are applied in substantially all cases, but there may be cases in which there are exceptions with respect to the servicing of particular loans. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Servicing, Billing and Payments </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The
responsibility for the initial servicing and collections of each large loan rests with the originating branch. Branches generally service all current loans, as well as loans that are in the early stages of delinquency (<I>i.e.</I>, 1 to 59 days past
due at the close of business of any particular month). If a loan becomes 60 or more days past due, a branch may receive <FONT STYLE="white-space:nowrap">co-collection</FONT> assistance from Regional&#146;s centralized servicing facility, described
in greater detail below. Control of credit quality is part of Regional&#146;s incentive compensation program for Branch Managers, District Supervisors, State Vice Presidents, and senior management, and as such, delinquency and net credit losses have
an impact on the incentive compensation that can be earned by such employees. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Borrowers who have signed up for online account access have
<FONT STYLE="white-space:nowrap">on-demand</FONT> access to their account information through Regional&#146;s website. In addition, borrowers may elect to receive automated, <FONT STYLE="white-space:nowrap">one-way</FONT> text messages with
information regarding their account, including payment reminders. If a regular payment has not already been made, a customer who has elected to receive text messaging services will be reminded via text of his or her regular payment amount, due date,
and the branch&#146;s telephone number ten (10)&nbsp;days prior to the due date, on the due date, and three (3)&nbsp;days prior to any late fee being charged. The text messaging service is integrated with the Nortridge platform, and customers have
the option of opting out of text messaging services at any time. In addition to online account access and text messaging services, Regional&#146;s customers may call or visit their local branch during normal office hours to retrieve their account
information. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Borrowers have the option of making payments (i)&nbsp;in person at a Regional branch where they may pay by cash, check,
money order, debit, or immediate, <FONT STYLE="white-space:nowrap">one-time</FONT> future, or recurring ACH, (ii)&nbsp;through Regional&#146;s customer portal via debit or immediate, <FONT STYLE="white-space:nowrap">one-time</FONT> future, or
optional recurring ACH, or (iii)&nbsp;by immediate or <FONT STYLE="white-space:nowrap">one-time</FONT> future debit or ACH over the phone. As of March&nbsp;31, 2018, <FONT STYLE="white-space:nowrap">in-branch</FONT> payments accounted for
approximately 61% of all large loan payments during the first quarter of 2018. Other payment methods, such as by phone or through Regional&#146;s customer portal, account for the remainder of payments. Approximately 44% of all large loan payments
were made electronically during the first quarter of 2018. Regional&#146;s borrowers are not permitted to pay using a credit card, and Regional does not expect to offer credit card payment as an option in the future. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">While <FONT STYLE="white-space:nowrap">in-person</FONT> branch payments remain an important element of Regional&#146;s operating model, as
they permit close contact with customers for purposes of servicing and generating additional opportunities for loan originations, there has been an increasing trend among customers to make payments by electronic payment channels.
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">9 </P>


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There can be no assurances that the trend toward increased usage of electronic payment methods will remain at current levels, increase, or decrease over time. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">All cash payments received at the branches are required to be deposited by branch employees on the day they are received in either one of the
Wells Fargo Depository Accounts, one of the state depository accounts established at Bank of America, N.A, or one of the bank accounts established at a local state bank, and in each case, amounts deposited therein are either transferred pursuant to
a wire or an ACH transfer on a daily basis into the Bank of America Master Depository Account. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Collection of Past Due Accounts </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">As a general matter, branch and centralized servicing personnel, along with all levels of management, review daily delinquency information for
large loans. Subject to applicable law and the terms of the applicable contract, collection activities (and the use of the strategic tools and servicing solutions described below) generally begin on the day any payment on a large loan becomes past
due. Routine collection activities for a past due large loan include letters, telephone calls, and automated, <FONT STYLE="white-space:nowrap">one-way</FONT> text messaging to the borrower. If Regional is unable to contact a borrower and has reason
to believe that the borrower&#146;s contact information is no longer accurate, then as part of its routine collection efforts, Regional may attempt to contact the borrower&#146;s references by telephone solely for the purpose of locating the
borrower. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional personnel also review the borrower&#146;s loan file and individual circumstances to determine whether the borrower
purchased any optional insurance products (<I>e.g.</I>, involuntary unemployment insurance or accident and health insurance) and whether the borrower&#146;s delinquency was caused by an insured event (<I>e.g.</I>, covered job loss or disability). In
the event that coverage is triggered, Regional personnel assist the borrower through the claims filing process. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If a customer has
enrolled in Regional&#146;s text messaging program and is late on his or her regular payment, the customer will receive a payment reminder three (3)&nbsp;days prior to a late fee being charged, on the day the late fee is charged, and seven
(7)&nbsp;days after the late fee is charged. In addition, the customer will receive a text message alert if a payment is returned due to <FONT STYLE="white-space:nowrap">non-sufficient</FONT> funds. The text messaging service is integrated with the
Nortridge platform, and customers have the option of opting out of text messaging services at any time. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In March 2017, Regional launched
a test pilot program in which certain branches receive <FONT STYLE="white-space:nowrap">&#147;co-collection</FONT> assistance&#148; from Regional&#146;s centralized servicing facility located in Greer, South Carolina. When a large loan becomes sixty
(60)&nbsp;or more days delinquent, Regional&#146;s centralized servicing facility may begin supporting the branch&#146;s collection efforts through a <FONT STYLE="white-space:nowrap">co-collection</FONT> model, though ultimate collection and
servicing responsibilities remain with the branch. There are approximately 44 designated centralized servicing employees that assist approximately 50% of Regional&#146;s branches with the <FONT STYLE="white-space:nowrap">co-collections</FONT>
process. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If a customer is unable to make the required payments to bring his or her loan current, acceptable solutions to remedy a past
due large loan include: (i)&nbsp;deferment of payment, (ii)&nbsp;Delinquent Renewal, and (iii)&nbsp;settlement. All solutions are intended to enable the large loan customer to meet his or her current and future obligations in a manner that Regional
believes will mitigate Regional&#146;s risk with respect to the large loan, while also complying with state and federal law and regulations and the Credit and Collection Policy. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">From time to time in accordance with the Credit and Collection Policy, Regional may offer borrowers the opportunity to defer one or more
payments on their large loan by extending the date on which payment is due. Prior to granting a deferral and depending on the state of origination, Regional typically requires the borrower to pay a deferral fee or make a partial payment on the large
loan. All deferrals must be approved by the Branch Manager or an employee with more senior authority, and to be approved, deferments must bring the account contractually current. Under the Credit and Collection Policy, borrowers are limited to two
deferments in a rolling twelve-month period unless it is determined, in accordance with the Credit and Collection Policy, that an exception is warranted. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional may offer a renewal loan to borrowers who are one (1)&nbsp;or more days contractually past due utilizing underwriting criteria that
is less stringent than that applied to regular renewal loans and to loans to new borrowers (a </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">10 </P>


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&#147;delinquent renewal&#148;). Delinquent renewals generally are designed to better position the borrower to meet his or her monthly payment obligations. In order to qualify for a delinquent
renewal, the borrower must have made the first three (3)&nbsp;contractual payments and at least one (1)&nbsp;payment within the past two (2)&nbsp;calendar months, and the borrower must have a verifiable source of income. Delinquent renewals may only
be approved by Regional&#146;s centralized underwriting team, may not include any cash advance to the borrower, may not include any type of origination fee or other charge, and may not result in an increase in the monthly payment or the effective
interest rate. In addition, in certain instances, Regional&#146;s centralized underwriting team may approve a reduction in the effective interest rate and/or an extension of the original term, in each case with the goal of lowering the
borrower&#146;s monthly payment obligation. Delinquent renewals generally are permitted only once in a rolling <FONT STYLE="white-space:nowrap">six-month</FONT> period. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In certain limited circumstances where a borrower is severely delinquent, has shown a consistent pattern of delinquency, or has demonstrated
severe financial distress, Regional may offer a type of delinquent renewal referred to as a &#147;sunset renewal&#148; in Regional&#146;s Credit and Collection Policy. The effective interest rate of a sunset renewal must be reduced to 18%, the
monthly payment must be reduced, and the borrower is thereafter ineligible for any type of renewal loan or monthly payment deferment. Sunset renewals are offered in each of Regional&#146;s origination states except for North Carolina and New Mexico.
A &#147;delinquent renewal&#148; described in the preceding paragraph and a &#147;sunset renewal&#148; described in this paragraph shall collectively be referred to as a &#147;<B>Delinquent Renewal</B>.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional may also agree to settle a past due large loan (a &#147;<B>Settlement</B>&#148;) by accepting less than the full principal balance
owned. Once a Settlement is accepted and the customer pays the agreed upon payment, the remainder of the balance is <FONT STYLE="white-space:nowrap">written-off.</FONT> A Settlement is only used by Regional in certain limited cases and is only
offered once Regional has determined that it is unlikely to collect the entire outstanding balance of the loan. All Settlements must be approved by a State Vice President, provided that the State Vice President must first obtain approval from
Regional&#146;s Chief Operating Officer or Chief Risk Officer for Settlements of less than 75% of the net payoff balance of the loan. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Certain <FONT STYLE="white-space:nowrap">non-routine</FONT> collection activities on a past due large loan may also be undertaken and may
include employing third-party software and the Internet to ascertain the whereabouts of a borrower, repossession of collateral securing a large loan, and litigation. Repossession and litigation are generally used only as a last resort after all
other collection efforts to resolve the delinquency and to protect Regional&#146;s interest in the loan are exhausted. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Repossessions are
initiated by Regional as a final remedy only when an account is seriously delinquent, Regional has exhausted other means of collection, and in the opinion of management, the customer is unlikely to make further payments. When a past due account is
secured with a lien on vehicle, the Branch Manager must make a recommendation whether the collateral should be repossessed. Regional&#146;s centralized underwriting team must approve all repossession orders, and the repossession coordinator handles
all repossession processes, including sending all post-repossession notices in compliance with applicable law. In the case of a past due account that is secured with a lien on <FONT STYLE="white-space:nowrap">non-essential</FONT> household goods, a
District Supervisor must approve all repossession orders and coordinates all repossession processes, including sending all post-repossession notices in compliance with state regulations. If the debtor does not redeem the collateral, it is
liquidated. Regional sells substantially all repossessed vehicles through sales conducted by independent automobile auction organizations, or to a lesser extent, private sales after the required post-repossession waiting period. The liquidation
proceeds are applied to the account, and Regional sends the disposition of proceeds letter to the customer by certified mail. If there is a deficiency balance, the branch and/or centralized servicing facility attempts to collect the deficiency using
all available resources and collection tools, including legal action. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Another final remedy for a past due loan prior to <FONT
STYLE="white-space:nowrap">charge-off</FONT> is the pursuit of legal action against the borrower. Prior to initiating and approving any such legal action, a District Supervisor will determine whether legal action is warranted based upon an
assessment of the collectability of the loan and the anticipated cost of pursuing legal action against the borrower. Legal actions are handled by Branch Managers in those jurisdictions with small claims courts that do not require an attorney, or are
otherwise referred to an external approved attorney or submitted to the internal legal department, as applicable. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Consistent with the
Credit and Collection Policy, from time to time it may be determined that an alternative solution (other than as described above) is necessary to avoid default and/or to facilitate repayment from a customer. In such cases, the applicable Branch
Manager may elevate the matter to senior management, which has authority to </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">11 </P>


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approve certain exceptions and, in some cases, provide customized solutions, in each case outside of the processes outlined above. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><FONT STYLE="white-space:nowrap">Charge-Off</FONT> and Sale </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Pursuant to the Credit and Collection Policy, large loans are generally <FONT STYLE="white-space:nowrap">charged-off</FONT> in full when they
reach the status of 180 days contractually delinquent, though they may be <FONT STYLE="white-space:nowrap">charged-off</FONT> in whole or in part at less than 180 days contractually delinquent following a Settlement, the death of the borrower, or a
borrower bankruptcy event. District Supervisors are responsible for identifying large loans that have reached 180 days contractually delinquent and are therefore eligible for <FONT STYLE="white-space:nowrap">charge-off.</FONT> Following approval of
each <FONT STYLE="white-space:nowrap">charge-off</FONT> by a centralized team member, District Supervisors coordinate the <FONT STYLE="white-space:nowrap">charge-off</FONT> process in Nortridge and with the branch. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional typically charges off bankruptcy loans in advance of the loans becoming 180 days contractually delinquent. In the event that a
borrower of a large loan is the subject of a Chapter 7 proceeding under the Bankruptcy Code, the following standards for <FONT STYLE="white-space:nowrap">charging-off</FONT> the large loan typically would apply: (i)&nbsp;Soft Secured Loans are <FONT
STYLE="white-space:nowrap">charged-off</FONT> upon becoming sixty (60)&nbsp;days contractually delinquent, and (ii)&nbsp;Hard Secured Loans are <FONT STYLE="white-space:nowrap">charged-off</FONT> when the underlying collateral is sold, but in any
event prior to such loan becoming more than 180 days contractually delinquent. In the event that a borrower of a large loan is the subject of a Chapter 13 proceeding under the Bankruptcy Code, the following standards for <FONT
STYLE="white-space:nowrap">charging-off</FONT> the large loan typically would apply: (i)&nbsp;Soft Secured Loans are <FONT STYLE="white-space:nowrap">charged-off</FONT> upon becoming sixty (60)&nbsp;days contractually delinquent, and (ii)&nbsp;Hard
Secured Loans are only <FONT STYLE="white-space:nowrap">charged-off</FONT> in the event that the bankruptcy plan is not confirmed, or if such bankruptcy plan is confirmed and Regional decides not to pursue a motion for relief, only after the
borrower debtor becomes sixty (60)&nbsp;days past due on the bankruptcy plan payments. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In rare circumstances, a loan may be held from <FONT
STYLE="white-space:nowrap">charge-off</FONT> for a maximum of thirty (30)&nbsp;days with the approval of the State Vice President, Chief Risk Officer, and Chief Financial Officer. A <FONT STYLE="white-space:nowrap">charge-off</FONT> hold may be
approved where, for example, payment proceeds are anticipated from an insurance claim or collateral liquidation, a bankruptcy plan is expected to be confirmed wherein Regional will be a secured creditor, or Regional&#146;s Legal or Compliance
departments have requested a <FONT STYLE="white-space:nowrap">charge-off</FONT> hold due to extenuating circumstances. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">From time to time,
Regional has sold pools of <FONT STYLE="white-space:nowrap">charged-off</FONT> loans to third-party buyers. Regional may continue to sell <FONT STYLE="white-space:nowrap">charged-off</FONT> loans in the future as part of its comprehensive recovery
strategy. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Records Management, Storage, and Disaster Recovery </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The physical customer loan file for each large loan is maintained at the applicable branch location where such large loan was originated. If
servicing of a large loan is transferred from one branch to another, the loan files relating to such large loan are transferred to the new servicing branch. Regional uploads to, and maintains in, the Nortridge system scanned electronic copies of
each large loan installment contract and any related certificates of title. Loan files are stored and retained in compliance with state and federal law, with retention generally lasting for seven (7)&nbsp;years from the date that the loan is paid
off or charged off. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional&#146;s data centers are located in Greenville, South Carolina (primary) and Asheville, North Carolina
(secondary). The hosting provider is a regional vendor operating at several sites in the Carolinas. All of the internal private infrastructure is virtualized and replicated between data centers in real time. In December 2017, the full failover and
rollback capability of this infrastructure was successfully tested for several servers. Full failover and rollback capability is tested on an annual basis, and partial testing occurs on a monthly basis. Regional&#146;s wide-area network is
redundantly triangulated between each of the data center locations and the home office facility in Greer, South Carolina. Full system backups are executed daily, and incremental backups are also conducted throughout the day. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Branch servicing and collection practices may change over time as necessary to comply with state or federal legal requirements and in other
manners designed to enhance Regional&#146;s large loan business. In addition, as Regional identifies new practices and tools that Regional believes will increase the accuracy and effectiveness of underwriting, servicing, and collections in the
branches, Regional may implement the practices and tools to better manage risk. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">12 </P>


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<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>RISK FACTORS </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Risks Relating to
Regional&#146;s Business and Operations </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B><I>Regional&#146;s insurance operations are subject to a number of risks and uncertainties,
including claims. </I></B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regional markets and sells optional credit life, accident and health, personal property, involuntary
unemployment, and vehicle single interest insurance in connection with Regional&#146;s loans in selected markets as an agent for an unaffiliated third-party insurance company. In addition, Regional collects a fee from obligors under Soft Secured
Loans and uses such fee to acquire <FONT STYLE="white-space:nowrap">non-file</FONT> insurance from an unaffiliated insurance company that protects Regional from credit losses that may be incurred as a result of Regional&#146;s decision not to
perfect its security interest in certain personal property collateral in connection with such Soft Secured Loans. The unaffiliated insurance company cedes all of these insurance policies to Regional&#146;s wholly-owned reinsurance subsidiary, RMC
Reinsurance, Ltd., which then bears the full risk of the policies. Insurance claims and policyholder liabilities are difficult to predict and may exceed the related reserves set aside for claims and associated expenses for claims adjudication. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The optional credit insurance products offered to obligors insure the personal loan obligor&#146;s payment obligations on the related personal
loan in the event of such personal loan obligor&#146;s inability to make monthly payments due to death, disability or involuntary unemployment, or in the event of a casualty event associated with collateral. Payment of the associated premiums can be
made by the obligor separately, but except in very rare instances, the personal loan obligor finances payment of the premium and it is included in the principal balance of the applicable personal loan. The financing of credit insurance product
premiums generally represents approximately 12% of the aggregate amount financed of Regional&#146;s large personal loan portfolio. A credit insurance product in respect of a personal loan may be cancelled if, for example, (i)&nbsp;the owner or
servicer of the personal loan requests cancellation due to the personal loan obligor&#146;s default on obligations under the related personal loan, (ii)&nbsp;the personal loan obligor prepays the principal balance of the personal loan in whole or
(iii)&nbsp;the personal loan obligor elects to terminate the credit insurance prior to the expiration of the term thereof (which the personal loan obligor may do at any time). Generally, upon any cancellation of credit insurance, the related
personal loan obligor will be entitled to a refund of the unearned premium for such credit insurance, which is typically effected by making a corresponding reduction in the principal balance of the personal loan. The insurance companies providing
such credit insurance have agreed to reimburse Regional for unearned premiums that are refunded to the personal loan obligor. Despite the foregoing, there can be no assurance that such insurance companies will have sufficient funds to make such
payments, which could result in increased losses on the large personal loans. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">A portion of recoveries reflected in the net loss and
delinquency tables presented herein are attributable to claims payments and reimbursement payments that insurance companies were obligated to make in respect of claims on and cancellations of such credit insurance, but personal loan obligors are not
required to purchase credit insurance products, and there can be no assurance as to the number of loan obligors that will purchase credit insurance. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The <FONT STYLE="white-space:nowrap">non-file</FONT> insurance product protects Regional from credit losses in the event that, after the
occurrence of an event of default under a Soft Secured Loan, Regional is unable to take possession of personal property collateral because its security interest in such personal property collateral is not perfected (for example, in certain instances
where an obligor files for bankruptcy and Regional&#146;s claim is deemed to be unsecured because it has not taken action to perfect its security interest in the related personal property collateral). In such circumstances, the <FONT
STYLE="white-space:nowrap">non-file</FONT> insurance generally will pay an amount equal to the lesser of the loan balance or the collateral value. In recent years, as large loans have become a larger percentage of Regional&#146;s portfolio, the
severity of <FONT STYLE="white-space:nowrap">non-file</FONT> claims has increased and <FONT STYLE="white-space:nowrap">non-file</FONT> claims expenses have exceeded <FONT STYLE="white-space:nowrap">non-file</FONT> insurance premiums. Regional is
considering various ways to lower its <FONT STYLE="white-space:nowrap">non-file</FONT> insurance claims, and it is uncertain whether the <FONT STYLE="white-space:nowrap">non-file</FONT> insurance product will be available to Regional in the future
on the same terms as it is today. If the unaffiliated insurance company were to enforce limitations on Regional&#146;s <FONT STYLE="white-space:nowrap">non-file</FONT> loss ratios, losses on the loans could increase. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Other risks relating to Regional&#146;s insurance operations include changes to laws and regulations applicable to Regional, as well as
changes to the regulatory environment. Examples include changes to laws or regulations affecting Regional&#146;s ability to offer one or more of its insurance products or the way in which such products are offered; capital
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">13 </P>


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and reserve requirements; frequency and type of regulatory monitoring and reporting; consumer privacy, use of customer data, and data security; benefits or loss ratio requirements; insurance
producer licensing or appointment requirements; required disclosures to consumers; and collateral protection insurance (<I>i.e.</I>, insurance purchased at the obligor&#146;s expense on the obligor&#146;s automobile collateral for the periods of
time the obligor fails to adequately, as required by his or her loan, insure that collateral). Moreover, Regional&#146;s insurance operation is dependent on its lending operation for its sole source of business and product distribution. If
Regional&#146;s lending operations discontinue offering insurance products, Regional&#146;s insurance operations would have no method of distribution. Further, if the insurers are for any reason unable or unwilling to meet their claim payment
obligations or if fewer loan obligors purchase credit insurance protection in respect of the loans, losses on the loans could increase. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">***** </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>GLOSSARY OF TERMS
</B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Hard Secured Loan</U>&#148; shall mean a loan that is, as of the date of the origination thereof, secured by a lien on one or
more Titled Assets. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Soft Secured Loan</U>&#148; shall mean a loan that is, as of the date of the origination thereof, secured by
untitled assets, including but not limited to, personal property, such as furniture, electronic equipment or other household goods, subject to limitations imposed by applicable law on the taking of
<FONT STYLE="white-space:nowrap">non-purchase</FONT> money security interests in such items. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Titled Asset</U>&#148; shall mean a
motor vehicle, boat, titled trailer or other asset for which, under applicable State law, a certificate of title is issued and any security interest therein is required to be perfected by notation on such certificate of title or recorded with the
relevant Governmental Authority that issued such certificate of title. </P>
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