I bought some today at $4.30, their capital levels are pretty strong, slowly starting to make some money again, still have TARP on their hands unfortunately, but should continue to start showing strong quarters, I think this sees $6-$7 this year. We will see. Anyone have some thoughts?
Have not looked at it since early last year. I did not look closely this time, but judging on the provision history credit issue subsided. What I still see this time around is that operating matrix continued to be lack luster. Pretax, pre-provision operating on asset for the fourth quarter 2012 was only 1.3%. If you recall, GFED had it at 1.6+% in 4Q12.
Too, if you strip out TARP, book value was around $8.5. So, you got a 50% discount, not a whole lot more.
Note TARP is to reset November this year. There are roughly $24 million subordinated debt and one A Preferred. There is no chance to pay off TARP unless it issue other preferred IMO. As you can see results has been weighted down by high cost debt/preferred. Any restructuring on them would help the results.
Thanks for your thoughts. Understandable. Looks like they are turning the corner already. Seems like most of the banks who don't give a #$%$ about shareholder value diluted them with huge common offerings early. I feel that most banks with TARP in decent shape will now try to float new preferreds or do something else when they need to get out of TARP. I understand they are in a no growth, but I will pay 50% book value any day for a company turning the corner a little and profitable now. I think this can go to $6-$7 and not too much downside from here. Who knows I could be wrong. Banks are very hard to find strong values on now in terms of book value discount.