Regional finance company as Treasury yields ease

As Treasury yields ease, Regional Finance Company could see lower funding costs in Q4, potentially boosting net interest income. Price target consensus now averages $40.20 with a “Buy” bias. When the government was shut down for 34 days during the first Donald Trump administration in December 2018 and January 2019, TSA officers and air traffic controllers kept going to work for a while. But after about two weeks with no pay, some of them started to call in sick or just not show up, and that led to longer security screening lines and flight delays. According to CBS News , about 10% of TSA officers called in sick during the 2018-2019 government shutdown. Community and regional banks serve businesses and consumers throughout the country. The Federal Reserve generally defines community banking organizations as those with less than $10 billion in assets, and regional banking organizations as those with total assets between $10 billion and $100 billion. Community and regional banking organizations constitute the largest number of banking organizations supervised by the Federal Reserve. In supervising community and regional banks, the Federal Reserve follows a risk-focused approach that aims to target examination resources to higher-risk areas of each bank's operations and to ensure that banks maintain risk-management capabilities appropriate to their asset size, risk profile, business activities, and operational complexity. With Q3 loan originations up 4% year-over-year, Regional Finance Company’s forward P/E ratio now sits at 9.8, below the industry average. This valuation gap could attract value-oriented investors if macro lending trends remain intact.