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Southside Bancshares Inc. Message Board

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  • xiaolei79 xiaolei79 Jul 29, 2011 5:18 PM Flag

    SBSI - not as good as EFSC

    Indeed, buying banks with non-growing local markets doesn't seem to be a good idea.

    However, I am not a macro economist and it's really hard for me to tell which local market is growing and at what speed.

    I am only focused on individual banks, and their financial statements really tell if they are growing despite of the local market.

    During my study of several hundreds of banks' financial statements in recent years, I found too many failed banks within a rapid growing loacal markets. They simply took too much risk.

    In contrast, many banks in the non-growing markets survived the crisis nicely.

    I think it's really individual banks or outstanding management and company culture matter.

    Finally, those consevative banks in the non-growing markets took those failed banks in the growing markets from FDIC, and they don't even pay for it.

    So my point is how you run the bank is much more important than where you run the bank.

    What you think?

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    • ewell the Warren Buffett cliche comes to mind. something about bad mgmnt will killa good biz and a good biz will salvage bad mgmnt. (Iam sure I botched this one)
      re banks, good mgmnt still can not save a bank in a poor economic environment. I would rather invest with the growing market wind at my back. if it has bad mgmnt maybe that growing market place will save them/me!
      I also looked at your analysis. very good I must say. but the bank will be limited to nim expansion by competition, especially in a stagnent market. and I could also argue Id rather have the cash (re divd) so mgmnt does not do something stupid with it. further I dont believe sbsi ever took any TARP funds. that was slightly before my time. As far as asset quality and (set asides as I call them) that is somehat up to mgmnt and the FDIC's blessing I believe.

    • Did you study TMP ??????????????

      Wonder what you think of that one ????????

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