My first impression is that they look pretty good.
Mr. Hall continued, "In addition, during 2012 we have continued to replace higher cost borrowings with lower cost fixed and floating rate debt, further enhancing our profitability, and we see additional opportunities to continue this. For example, our $33,000,000 of Trust Preferred securities, which currently carry a fixed rate of 7.68%, will re-price to 90 day Libor plus 2.125% in September, or 2.59% at today's rates, which should be accretive to subsequent earnings."
Another dividend raise and future earnings growth easily attainable through refinancing their debt.
Buying that Bank in Utah turned out to be the best of decisions. Cost of funds keeps on dropping and profits (and dividends) just keep coming...nice.
2000 new medallions should mean lots of new loans even if values go down a notch per medallion. I am imagining the Company may also pick up a whole new business from the potential increases in value of "hailing permits" somewhere down the road.
Looking to the day when interest rates begin to rise, the Company should be in a good position with more and more loans being made by the Bank because the cost of money from depositors is low and so the spread will increase.