Five minutes of reading does not make me an expert, but a cursory look revealed a bank short of earning power. Pretax, pre-provision operating income was much improved in 4Q12, to $1.875 million. It was only $1.5 million in 3Q. But this only translates to an annualized PT-PP ROA of 0.75% and 0.60% respectively. Upon closer look, 4Q12 was boosted by an extra $1 million income from sales of SBA loans. This source of income tend to be be irregular, my bet is that it won't repeat at this level going forward. Even if it does,PT-PP ROA is still unexciting. I won't pay near book value for this poor quality issue.
So, some may ask, what would get me excited?
When six months ago JFBI, with PT-PP ROA at 0.9%, was traded at around $2, or 27% of tangible book value, it got me excited.