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First State Bancorp. Message Board

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  • Fish2026 Fish2026 Aug 15, 2009 6:45 PM Flag

    The question is

    You haven't been reading the posts and you don't understand much about banking.

    They started in 1922 and have generations of banking relationships with families and businesses. IN a less populated state like NM one can not put a price on that value. They picked the best areas for branches and you don't understand accounting either or you'd know for the branches they bought- the buildings have been depreciated down to near nothing while the value has gone up steadily until the last couple of years.

    This is why if you study bank stocks - New Mexico banks over the past 30 years have sold for a higher ratio of price to book than almost any other state.

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    • <<You haven't been reading the posts and you don't understand much about banking.

      They started in 1922 and have generations of banking relationships with families and businesses. IN a less populated state like NM one can not put a price on that value. >>

      I understand the value of history in a place like New Mexico. Its enormously valuable, as you say. But, that loyalty works on the local level, not the state level. First Community has 80 years history in Taos, which will mean a lot to someone in Taos. However, that doesn't give it roots to people in Las Cruces, Clovis or Roswell, or Albuquerque. They've only been a major player in Albuquerque for 10-15 years (if that), and have changed names in that time. They have no presence in a lot of important parts of the state (like the oil patch), and have a very short history in the southern part of the state.

      Also, their financial problems are losing them serious goodwill in the business community here. They are really not taking new customers, and they are very sparingly giving good business customers any more money. Their stronger customers are going to ditch them for banks who have money and will lend it.

 
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