who thinks a combination with FSNM serves their interests?
ALBUQUERQUE, N.M.--(BUSINESS WIRE)--First State Bancorporation (“First State”) (NASDAQ: FSNM - News) announced today the retention of Keefe, Bruyette & Woods (“KBW”) as a financial advisor to the Corporation for the review of strategic alternatives to enhance shareholder value, including the possibility of entering into a business combination with a strategic partner. First State further stated that there can be no assurance that the review of strategic alternatives will result in First State pursuing any particular transaction or strategy, or if it pursues any such transaction or strategy, that it will be completed. First State does not expect to make further public comment regarding the review until the Board of Directors has approved a specific transaction or otherwise deems disclosure of significant developments is appropriate.
If this was taken over -I expect the shares would go for about half book value. A profit for me as I bought in the 1-1.50 range, but not sure about others. The branch franchise is too valuable and a bigger bank with some capital would be perfect. I sort of like having shares in this bank but business is business.
I myself wonder how much value their 'franchise' has to another bank. Although they are the largest 'home' bank in New Mexico, and are 80+ years old, I don't think most people know that because: 1) They have changed their name recently, I think a lot of people think they are a new 'brand x' bank that popped up.
2) they only really entered the big business markets (Albuquerque, Las Cruces) 10-15 years ago, so they don't have that lengthy history of loyalty they do in their home of Taos.