The report was good in that it appears the bank is still surviving capital-wise. It appears their expenses have fallen appreciably due to closures and internal salary reductions. It appears at this time TONE has no brush with bankruptcy coming.
Unfortunately there was also unsettling news. With the loss in the 4th quarter, the Yahoo reported book value will be 15.00 ... exactly. There was a sizable increase in delinquet loans of 20.3 mil. This could well be the next batch of NPLs. Their overall NPLs increased 1.2 mil to 142.2 mil. Nothing in this data is company threatening IMHO, just still indicating a slumping market.
Nevada is still killing them. Nevada NPLs that total 71.3 mil make up 50.1 percent of ALL the NPLs. 17.3 mil in new delinquet loans are also from Nevada. Toxic is the wrong word for these assets, I'd say more like strangling.
My final takeaway from the report was the bank is still safe. It's priced right now (1s) like a company going under...... GL
Its priced rediculously!! The report was good given the circumstances and better most banks in this enviroment. BK has never been in the cards for TONE. I am not sure why people bring that up. The bank has over 3.2B in deposites!!! Once the Nevada assest goes, leaky hole well become substantially smaller.
IMO TONE needs to concentrate on making moves on some of the outstanding opportunities that exist in this enviroment and set its sights on growth again.