I agree it is pretty impressive if the truth be known. I generally tend to be negative on everything I own and might buy as I'm still bitter about how I can't buy shares at prices available in the 80s. I was working for a company in 87 that was selling at a P/E of 4, we had very conservative accounting policies and great prospects. Plenty of opportunities since then too but right now I am having a hard time finding stuff I really like.
Tend to agree it shouldn't trade at below NBV but there are a number of banks trading there. I don't know WIBC real well but I like that they seem to be sticking to what the government thinks banks ought to do (no Durben amendment issue here!) and everyone says southern California commercial real estate isn't doing too badly (and they have plenty of cushion on their loans for declines in values). What bothers me is the CEO talking about the need for a sound credit culture which ticks me off as it tends to indicate they didn't have one. Lying by old CEO is obviously unacceptable but overall they didn't do too terribly (and didn't take huge salaries/bonuses). From a million miles away I thought he might destroy what was a pretty good credit culture. I also didn't like and still resent the lack of transparency in the share offering.
I should keep my mouth shut as I have not even listened to the conference call but anyway I think they are well positioned for the future. I don't think they can earn 20% ROE on a consistent basis but I hope they prove me wrong.
The CFO said once how long they had to be profitable before the DTA came back onto the balance sheet. I think it was two years but my memory may be failing me. I wouldn't count on it before 2014. My understanding is that they did do a §382 study and they should be o.k. on this front but I know I recollect that I thought they had blown it when they did the share offering.
Do you have any idea why they have not paid the TARP preferred stock back? I don't know why they wouldn't but it might tie in to the §382 issue. I'm just rambling here. I follow a lot of stocks and don't know most of the stocks I own nearly as well as I would like. I'd be willing to bet they are down tomorrow quite a bit but I'm willing to hold as I'm not sure what I'd buy if I sold.
Anyway, do you know of a reason to not pay back the TARP? Their ratios seem very solid right now.
WIBC raised ennough to tie it over, but not overly so. My problem was the price at which it floated the new shares. Still hurts, thinking of it.
Apparently there is no surplus to deal with TARP at present. What it'll do is wait for the prospect to improve to where it can float additional shares (at some premium over book, so I hope) to pay back TARP. I am all for that. Paying out of earnings? No way. One, it can't earn enough before then; two, it's just not efficient.
Finally listened to the call. They talked about the TARP and said they can't pay it off until the MOU was lifted. They didn't know when that would be but apparently the next big review was in February 2012 so it won't be before then.
They indicated that the dividend rate on the TARP increases in December 2013 and that they were very confident of paying it off by then.
My guess is that the MOU gets lifted by March/April of next year but they won't pay the TARP off until 2013 unless the economy starts to shine (fat chance!).