This bank has always been the bridesmaid and finally they are the bride. The problem is they married the girl with a loose reputation. I am concerned that their first acquisition is filled with ???? about the supermarket branches . This bank's success has been based upon a FOCUSED strategy and now that is in jeapordy with this deal. Why couldn't they strike a deal with FFIC which makes a lot more sense than this one. They are buying a troubled bank for crying out loud. I guess management has a lot of guts to do this one. Thank god I don't own this stoxck.
I have seen a few examples of nearly 2-year periods for conversion eligibility. But AMFH is the only one coming to mind at the moment.
As for the deals themselves, the public demand on the national level has pretty much mirrored the local action. Of course, there have been very few local deals in the last 2 years. And as we know, NY, NJ, CT, MA and PA are target rich.
Let's hope QCSB continues to gain. However, the dividend has not been increased lately. The bank needs more sponsorship on Wall Street.
I've been a devoted thrift buyer for more than a decade. However, I've generally ignored the mutual-holding company issues because their performance never matched the fully-converted thrifts. With almost all thrift stocks down over the last two years, there was no reason to buy into thrifts with limited shareholder rights. However, maybe other mutual holding company managements will learn and follow the path of RSBI.
I have not wanted a conversion at Provident before now because the aging period for eligible depositors has grown continuously longer. Two years seems to have become standard. I've been shut out of several for missing the depositor deadline.
With regard to other potential conversions, I am into a bunch around the country.
Speaking as a former HAVN shareholder that got severely burned by the Supermarket Banking Strategy employed by HAVN management the last five years, I must warn QCSB shareholders to brace themselves.
About 4 years ago, HAVN shares were trading at a high of $29 per share. Then the Earnings drain known as supermarket banking was firmly put in place dragging the price per share down to $9 at its worst. The fact is, the PPS never made it above $20 after the in-store branches began opening.
"bankman retired" makes a very legitimate point that the QCSB is buying a troubled bank. However, this assessment is a serious understatement. The problems facing the supermarket branches are many and severe, the most serious being the operational losses that have plagued these branches from day one. These losses have historically averaged approximately $100,000.00 per month for the last three years. That comes to over a million dollars a year.
If you take a look at HAVN annual reports over the last three years you will find that despite vigorous efforts to cut expenses in the supermarkets, the expense to earnings ratio was consistently at least 3:1. That trend continues.
HAVN triumphantly reported that the in-store division as a whole was profitable this year contributing $600,000.00 overall to the Bank's profitability. Give me a break. The fact of the matter is that the vast majority of these branches have never been and never will be profitable. So on average, each branch earned about $10,000.00 last year. That comes to about $27.00 per day.
Not a very good return on a multi, multi, multi million dollar investment if you ask me.
You have a bank that has never done an acquisition, taking over a bank that by all analyst accounts is one of the most financially troubled most poorly managed thrifts in the industry. Sounds to me like a recipe for disaster.
I fear QCSB shareholders are about to embark on the long road of frustration previously traveled by HAVN shareholders. Good luck!
supermarket branches that caused the problems with CFS. CFS blew a golden opportunity when they acquired the Intercounty branches. CFS staff, in charge of mortgage origination, lacked the knowledge of government mortgage loan production needed to keep those offices profitable. Everything that went wrong internally was blamed on the "poor acquisition". If someone at the head of the helm would have owned up to their ignorance of FHA and VA lending and called in an expert, CFS would be much better off today. Historically, when the overall mortgage market is in a slump, FHA picks up.
As for the QCSB merger, considering QCSB is a similar operation as the old Columbia Federal Savings Bank, maybe there is someone at the top, capable of recognizing the lack of ability of the "hoochiemamas", get rid of them and start restoring some dignity to the name of CFS Bank.