Last quarter GBNK posted a $2.68 loss, this quarter they posted a .07 gain vs. .01 expected.
The bank is healthy and blew away expectations. Only problem is that it isnt widely followed so the move up will take a long time like the move down, but could easily double from here in under a month.
The market for bank stocks is completely nuts. Emotions are running ahead of common sense and there is just fear selling. We are at 1/2 of hard book value and Castle Creek is in the wings ready to buy 20% of GBNK as soon as they get Fed approval as bank holding company. They put this bank together--who better to know what is going on--They are on the BOD--what more do you need. GBNK will be at $5 soon--it is a great low risk holding.
They are in the Denver/Boulder front range market. Real estate has held up well. Our restaurant business, which is six locations, is up 8% versus last year. Our chain of foot products stores is up 20%. Real estate prices hit bottom in July. We are getting ready to raise rents in our apartments 10% in 2009. Considering the earnings report. I would say the worst is behind us in Denver. I know these guys and they are good bankers--very thorough and professional. The stock looks like a steal and we will look back in 2 years and wonder why we did not borrow all we could to buy it.