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Alaska Pacific Bancshares, Inc. Message Board

  • Fish2026 Fish2026 Nov 11, 2011 11:51 AM Flag

    An intelligent post on AKPB

    I agree too much crap on here Yahoo ought to rid itself of anonymous posting.

    Anyway APKB provides lots of info but its a hunt. Most 10Qs have a full balance sheet but AKPB just has selected info- I had to find it in the 10k. I was looking for Goodwill and intangibles. Bank of America and many other banks are full of this worthless asset but I was happy to find AKPB has none.

    The negatives - its still under OTB watch but its slowly improving its ratios and there is some cushion but not as much as most banks that would be classified as healthy or safe. Also there are 12 million in loans on watch-if they all went totally bad APKB would lose 1/3 of its book value- on the other hand if all banks had their slow loans go bad 60% would be belly up.

    The postives are it has a nice interest spread twice as good as Bank of America or Citybank as well as many smaller banks over 5% is Nice!
    Its earning money from continuing operations- at a nice clip.
    IT sells for well below its book value of $23 and that's an honest book value.

    uncertainty - I am totally ignorant of the SE Alaskan Economy and its prospects. Alaska usually fares better than the rest of the country but - I'm clueless here.

    I'm not sanguine on banks in general but at $5.80 I will grab a few shares. Wish me luck - I still have one kid at home an 11yr old who likes pedis and a dog who wants "people food" Steve Fischer

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    • By my method of computing book value, I would reduce the book by the amount of the TARP outstanding or about $6 per share.

      • 1 Reply to robat4427
      • The book value was $24, net of $7.25 TARP per share.

        Deposit grew 28% in ten years, roughly in line of inflation. Unlike in the continental US, the market is static and it has no room to expand. It's restricted to a narrow patch of land between mountains and the sea.
        The bank used to make around 6% to 7% on equity and there is no sign that's going to change. Say it retains 3% just to keep up with inflation and pay out 4%, and since it's traded at 75% off book, the yield for us is around 16%, more or less perpetually. Not a bad deal at all. Now, if the share price were to move closer to book, it's just icing on the cake. That is, if one chose to sell.

        Disclaimer: I do not own the shares mainly due to its lacking in earning power.