How would HBKS look if it had to pull down the ball and run with it?
I would say very good. "Business banking" strategy looks well insulated against real estate values re-busting. Reduction in gov't. spending could be a problem, but the key thing is that Oceana looks solid - it's not going away. All of the five remaining bank branches are in really good locations. Tunnel tolls will drive more business to Norfolk/Va. Beach. Plus, probably some relief coming for small banks. Regulatory exceptions; and maybe SBLF II. Only bad thing is, you got to watch out for insiders launching a low-ball buyout of their own, but that would probably lead to lawsuits ... greedy shareholders would fight it. Fact CFO retiring means insiders aren't going to try an insider buy ... still look for sale to another bank at the right price.
I would theorize HBKS is having buyout talks, but the price isn't high enough. Good thing they have the running game to fall back on. Without SEC registration expenses, two dud branches, and higher SBLF rate, earnings ought to start ramping up soon.
Less regulation for small banks and credit union tax exemption could end:
"Because they are nonprofit institutions, credit unions are exempt from federal income tax. That’s long been a sore spot for the banks, which now see a potential opportunity in tax reform legislation to challenge the exemption.
On its website, the American Bankers Association says, “As Congress examines the affordability of tax exemptions in the face of rising debt levels, it should target the credit union tax exemption, an anachronism whose need has long disappeared. Credit unions' tax exemption was originally linked to their mission to serve people of modest means. But there is evidence that the tax subsidy is going to individuals who clearly do not need subsidized financial services and benefits the largest credit unions.” So,the ABA concludes: “If credit unions want to act like banks, they should be taxed like banks. Plain and simple.”