This 2Q earnings report is a disaster. Here are some lowlights:
1. Return on assets .40x
2. Return on Equity 1.4%
3. Dividend paid out at .13/share vs. earnings of .05/share
4. Loan loss provision of $1.6 million even though there was $3.7 million in charge-offs (thus loan loss reserve actually fell $1.9 million)
5. Loans and core deposits actuall fell from 1Q
They basically chose to take our $ from the 2nd stage and put it into Treasuries. Now they are going to do a buy back at well under the $20 IPO price??? Additionally, I'm not sure how they paid dividend in excess of earnings (no mutual to waive the div anymore). Better see an improvement and soon.
this stock has bottomed and so has the subsector
many piggies grosslyoversold
yield curve is much more favorable
so banks will jump in the m and a
while thrifts are down earnings down trailing
thrifts punished for the mortage company sins of abuse of leverage and lousey lending
for thrifts the spread has improved
the biz is lousey but competeion is much less with the agressive lenders all gone!
house prices down 16% in last 2 years incomes up 4% a year for 2 years 8% , baby boom kids now looking for homes.... house more affordable then 2 years ago by 32% !!! lot of house deflation !!! joco
How can you do a ROE comparison when the equity just doubled. Believe it or not no matter who is running the bank it takes time to deploy. Adjusted earnings went up excluding the one time event which is not bad and of course, they have a ton of capital at the best time possible given the beating all of the financials are taking now. Gotta believe this place has the resources to weather almost any storm and will be in a good position to capitalize on opportunties as the industry rebounds.
Like I said, I don't own PBCT as of this writing,
but I think by going north instead of NYC,
increased value of PBCT to JPM, C, and maybe even
WB, Royal Bank of Scot, etc versus going into NYC area.
I also own ROMA and ORIT - cheap price / Minority TB.
But since I own, they will crash and burn. :)
If this keeps up, I will have to ask Joac for a job.
Bottom line is most of us bought in April. The fact that people are panicking in July is laughable. Don't get me wrong, I'd prefer it be up, but because like you (I hope), you're reinvesting your dividends at this silly low price, come April next year, you'll be happy it's where it's at now. This is a great bank - if you don't bank there - you should if you have access.
Report is solid. Relax. Enjoy the weekend. And remember - you don't even know who I am so take what I say as you wish.
i like orit and roma i expect great returns over time meanwhile they have been doing ok super high quality super high quality market love nj
simple you are a risk adverse barrons reader sure vermont appeals to you it is low risk play and smart from that point point of view , but we ask is why there little cometetion up there?
i too am flat in pbct here , but i think shows a lot about the health of our subsector so i am a watcher ,
i bot just alittle more ORIT recently these h funds need to sell , ORIT can buy back stock ! and lots of it ...lot of cash and biz is slow buybacks and div waive all the way ! we will do ok i like nj mhc here isbc orit krny oshc a nice 20 tender woiuld be nice time to reduce float when prices are down !!! sinejoco