hard to find any stock whose price is now lower than in March 2009. PBCT is one of a few. Sentiment was horrible back then. I suspect things are not good for this company. I cannot find any good comments from the brokers. Seems like no one is interested. Maybe there are too many banks in the Northeast and competition is too much. comments about management is disheartening. Maybe they are incompetent.
Merrill Lynch has a price objective of $11. They write the following:
"PBCT reported Q4 GAAP EPS of $0.18, below our $0.19 estimate and consensus
as stronger fee income and asset growth were not enough to offset continued rate
pressure. Positively, provisions were lower QoQ and credit trends remain benign.
Opex discipline was somewhat helpful. PBCT also continued its share
repurchases, buying back another 4.7M shares for $56M, making it a total of
18.2M shares for the year. That said, rate pressure continued to impact asset
yields, with key segments falling further. PBCT also guided for more severe
margin compression ahead, with NIM in the 3.30-3.40% range for 2013, down
from 3.63% in Q4. Overall, we see little relief in the near-to-medium term as
PBCT continues to be negatively impacted by the challenging rate environment.
"Capital levels remain healthy; dividend stable
Capital levels in Q4 were healthy, with a TCE ratio of 10.2%, down from 11.5% in
Q3. Tangible book value at Q4 was $8.71, down from $8.77 last quarter. During
the quarter PBCT bought back 4.7M shares for ~$56M. For 2012, PBCT bought
back ~18.2M shares for ~$220M. PBCT has 33.4M shares available for
repurchase under Nov 2012’s new share repurchase authorization. Finally, PBCT
kept its $0.16 per share quarterly dividend, with a payout ratio of ~88% in Q4 vs.
87% in Q3. We see PBCT’s dividend as relatively stable, given its healthy capital
Sometimes I just don't understand the marketplace. The company is well poitioned in its primary market, has been growing revenue albeit slowly and has not made any huge missteps unlike the big banks. Given the ability to sustain its 5.1% dividend and the crummy income alternatives I would expect a bit more enthusiasm.
Actually PBCT is doing pretty good considering the slow economy. The divi is stable and the bank is doing much better than last year.
With the new financial acquisition and expansion and with an improving economy this bank will grow bigger with more revenues and a greater yearly EPS for his shareholders. I think in 6 months PBCT will be a $20 plus stock.