Pretax , pre-credit, was $1.35 million. Much is left to be desired.
earnings, after 20% income ta and preferred dividends, was $0.25 per share
However, book value went up by $0.15.
I did not look at it close. Nothing strikes me as exciting.
Not exciting enough to buy at $10 per-share for sure. I still don't see how some of the multi-million dollar fraud loans from last year got swept under the rug without seeing any major charge-offs since then.
I have serious reservations about GFED because I have a hard time trusting anything they say. I would be far-far more likely to buy here if they canned Burke. On paper it looks fairly attractive, but you never know what disaster is lurking just around the corner with GFED.
In banking, as in insurance, you really never know about the next blow up. It's a percentage game that some play well, others don't. But you never know in any given time.
You can fault Burke of not forthcoming on a few occasions and on a few blunders, but the theme for investment does not change.
It has book value 50% above current quotations.
Its credit problem is receding.
The turn off for me is the lack of earning power. Pretax, pre-provision operating income was stuck at 1.1% on asset, way bellow peer average of 1.7%.
The bank held on its interest spread by lowing interest cost. It held down expense too. What it need is to make profitable loans. Easy said than done.