-Extremely low level of NPA, awesome and stable asset quality -Ample liquidity and great capital ratios -One of the lowest P/E ratios with very high quality of earnings -Successful public offering at a decent price with no dilution to the original shareholders -The price now (15.50) is trading below their public offering price (16.35) in March -Fully exited TARP, both capital ratios and liquidity are further strengthened -Quarterly dividend increased to $0.12 from $0.10 -Loan portfolio is expanding steadily superior to the whole industry -Outstanding management team -Adding back the TARP payment, they made $0.44 per share in Q1 -The only flaw is that there is a 8.48% series B preferred stock; however it only deducts $370,000 from the net income
I think this bank is ready to take advantage of the recovery since it's already quite strong in such a slow economy.
Hi clownbucks, don't rely on tangible book too much; There are many banks trading way below tangible book value but with a very bad performance. For example, high non-performing loans; high expense compared to revenue(low efficient).
Look back to the past two years, IBCA is very bad , it once traded way below tangible. WIBC is absolutely a liar; those Koreans did a good job on window dressing and hiding the bad loans. it also once traded way below tangible.
Why do you buy a bank stock? Especially a smaller bank, you can't be in it for huge capital gains. I buy them because (1) I like the dividend and (2) I hope they get bought up at a premium by a larger bank. Worked great for me on Commonwealth (gobbled by Citizen's)!
FISI has a small 3.1% return; most banks are closer to 4%. I like QNBC at 4.3% plus my 5% discount when buying through the DRIP. UVSP price is depressed right now making a 5.0% return.