Regions on Buyout Spree, Closes Ascentium Capital Acquisition

Regions Financial Corporation’s RF subsidiary, Regions Bank, completed its proposed acquisition of equipment finance lender, Ascentium Capital LLC, from Warburg Pincus. Notably, the company had announced the acquisition this February, marching ahead with its efforts to expand offerings for small-business customers. It also complements Regions Financial’s established equipment finance and commercial banking businesses that serve the middle-market and large companies.

Financial terms of the transaction have not been disclosed yet.

Headquartered in Kingwood, TX, Ascentium Capital is the largest independent equipment finance lender in the United States. It offers comprehensive financing solutions through more than 460 employees. It had approximately $2 billion in loans and leases, and $1.5 billion in originations at the end of 2019.

Since inception, Ascentium Capital, with its management team and proprietary underwriting technology platform, has delivered strong performance throughout credit cycles.

"We are pleased to welcome Ascentium Capital teammates and small business customers to Regions," said Ronnie Smith, senior executive vice president and head of the Regions Corporate Banking Group. "The strong combined team from Regions and Ascentium is committed to providing capital, flexibility and financial guidance to support and strengthen the small businesses that are so crucial to the economic health of the communities we serve," noted Smith.

Notably, in order to boost its diversified business, Regions Financial has been on an acquisition spree for the past few years. As the company remains committed toward diversifying its revenue streams, we believe such acquisitions support its growth prospects.

Apart from this, it continues to take actions with respect to the company’s Simplify and Grow initiative, including streamlining its structure and refining the branch network, while making investments in new technologies, delivery channels and other growth drivers.

In the past year, this Zacks Rank #4 (Sell) stock has lost 44.2% compared with the 36.4% decline of the industry it belongs to.

Stocks to Consider

Northrim BanCorp Inc NRIM has witnessed upward earnings estimate revisions for 2020 over the past 60 days. Moreover, this Zacks #1 Ranked (Strong Buy) stock has lost 39.9% over the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

First Western Financial, Inc.’s MYFW current-year earnings estimate moved north in 60 days’ time. Further, the company’s shares have declined 10.8% over the past six months. At present, it sports a Zacks Rank of 1.

Encore Capital Group, Inc ECPG has witnessed upward earnings estimate revision for the ongoing year in the past 60 days. This Zacks #2 Ranked stock has depreciated 33.8% over the past six months.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Regions Financial Corporation (RF): Free Stock Analysis Report
Encore Capital Group Inc (ECPG): Free Stock Analysis Report
Northrim BanCorp Inc (NRIM): Free Stock Analysis Report
First Western Financial, Inc. (MYFW): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.