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Regional Management (RM) Extends Services to Louisiana
Regional Management Corp. (RM - Free Report) recently announced that it has opened its first branch in Metairie in New Orleans. With this move into Louisiana, RM now has 17 U.S. states under operational coverage. It continues to amplify its geographical expansion while focusing on branch optimization.
This strategic action is expected to have expanded the consumer finance company’s footprint in Southeast U.S. The move is in line with RM’s geographic expansion strategy, which supports its market share growth. Reaching Louisiana is expected to have bumped up Regional Management’s total addressable market size by around 75% from the onset of the COVID-19 pandemic. The latest expansion will allow the company to offer its suite of affordable financial solutions to local clients.
Regional Management closed a $250-million (its largest) asset-backed securitization this February, amplifying its financial flexibility to execute its long-term strategies like boosting its market reach. In February, Regional Management extended its operations in Mississippi and commenced piloting end-to-end digital lending in March-end. It reached Indiana in June-end and California in early August.
The company’s branch optimization program is expected to generate $1.8 million of annual savings from general and administrative costs. These savings are reinvested to extend operations into new states. With its latest expansion in Louisiana, people with limited access to consumer credit are expected to benefit from the company’s secured credit products.
Shares of Regional Management have declined 46.7% in the past year compared with a 32.9% fall in the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Regional Management currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader finance space are MGIC Investment Corporation (MTG - Free Report) , Arrow Financial Corporation (AROW - Free Report) and Brighthouse Financial, Inc. (BHF - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Headquartered in Milwaukee, WI, MGIC Investment provides private mortgage insurance and other products in the domestic markets and internationally. The Zacks Consensus Estimate for MTG’s 2022 earnings indicates a 33% increase from the prior-year reported number.
Based in Glens Falls, NY, Arrow Financial is a financial products and services provider. The Zacks Consensus Estimate for AROW’s 2022 bottom line has increased 2.1% in the past 60 days.
Charlotte, NC-based Brighthouse Financial is an annuity and life insurance products provider. The Zacks Consensus Estimate for BHF’s 2022 bottom line has improved 17.3% in the past 60 days.