Back to top

Image: Shutterstock

Regional Management (RM) Expands to Idaho, Reaches 18 States

Read MoreHide Full Article

Regional Management Corp. (RM - Free Report) recently announced that it intends to open its first branch in Idaho in the first quarter of next year. It has started lending operations in the state. With this move, RM brings 18 U.S. states under its operational coverage.

RM continues to boost its geographical expansion while focusing on branch optimization. The latest move is expected to expand the consumer finance company’s footprint in the Pacific Northwest region for the first time. This is in line with Regional Management’s geographic expansion strategy, which supports its market share growth.

Reaching Idaho is expected to bump up RM’s total addressable market size with more scope awaiting in the Pacific Northwest region. The latest expansion will allow the company to offer its suite of affordable financial solutions to local clients. Before opening branches in the state, the company is expected to continue operations through its centralized sales and service team.

Regional Management completed a $200-million (its ninth) asset-backed securitization this October, amplifying its financial flexibility to execute its long-term strategies like boosting its market reach. In September, the company extended its operations in Louisiana. It reached Indiana at June-end and California in early August.

RM’s branch optimization program is expected to generate $1.8 million of annual savings from general and administrative costs. These savings are reinvested in extending operations into new states with lighter branch footprints. With its latest expansion in Idaho, people with limited access to consumer credit are expected to benefit from the company’s secured credit products.

Price Performance

Shares of Regional Management have declined 51.3% in the past year compared with the 33.5% fall of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Regional Management currently has a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader finance space are MGIC Investment Corporation (MTG - Free Report) , Arrow Financial Corporation (AROW - Free Report) and NerdWallet, Inc. (NRDS - 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 current year earnings indicates a 49.7% 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 4.5% in the past 60 days.

Based in San Francisco, NerdWallet is a digital platform operator connecting individuals and businesses with financial products suppliers. The Zacks Consensus Estimate for NRDS’ 2022 earnings signals a 74.4% improvement from a year ago.

Published in