paying 20% at $9. If you think CRBC makes it (and the capital ratios pro-forma for last month's offering look strong), CTZ_pa is a steal. In fact, as debt, if CRBC common gets diluted by further equity issuance, that actally helps CTZ_pa because it still will pay $1.88 per year on its $25 par. Now trading at $9, a good buy for the risk tolerant.
After the June 11th offering of $200 mil of common and preferred equity, CRBC's capital ratios look about the same as SNV's which everyone seems to think is a strong, well capitalized regional. Check out the ratios shown in each of the two releases I've posted links to. The difference between the two is mere basis points. Granted, CRBC's common price got killed due to the dilution, but from the standpoint of CTZ_pa, that really doesn't matter. Check it out: CRBC: http://biz.yahoo.com/prnews/080605/clth044.html?.v=101 SNV:http://biz.yahoo.com/bw/080424/20080424005338.html?.v=1
This thing is really flying under the radar, people don't understand its a trust preferred (debt) and if CRBC dilutes the common more to add equity, that actually helps more senior securities like CTZ_pa. .36 on the dollar, yielding 20%.