If people don't have jobs, why would consumer loans be a good bet? The interest rate is higher, but that's it ... I don't like this deal. $39.6M is almost $40M, right? This isn't any little matter.
Zenpenny could be overconfident about there not being another capital raise. Written Agreement has not been lifted; Gov't. could say you need more capital. Bingo ... you get another capital raise and it's probably priced at $0.65 .. that wouldn't be good.
Translated: We're going to sell this bank as soon as we get a good price.
Old people getting older every year.
More millennials enter the work force every year.
Less need for big branches.
TOWN is like an old big Cadillac ... great for old people ... but for how long?
Want serious advice: Never count on reversion to the mean.
Lady from Newport News said several years ago, "They just had something like five meetings over here. Next one will be on the Peninsula."
So how did that work out?
Without Russell MNRK is overvalued. 1.31 book should be more like 1.10. That would put it back in the $9.30 range.
Of course, if HBKS can get a liquid stock like BBT, they don't need to check much. But hey ... it's pretty interesting stuff, so they will probably take a look under the hood anyway.
Research came out Monday on HMPR. Yahoo won't let me post a link. Go to Zenpenny ... look for article on regional banks dated 5/20.
No time to review it yet.
Mid April - original cut off estimate was $111.5 or so.
Now - IWM up 10% since then.
Do the math.
Pilot article: "After nine weeks of trial, the jury was given the case Friday, but Monday was the first full day the panel got to deliberate.
Jurors had two questions Monday.
First, they asked for a dictionary."
And they wanted to look up? Let me guess ... "safe and sound."
Personally, I don't think the CEO even wrote his shareholder letter this year. Maybe he was busy with buyout negotiations and he told his secretary: "We have to act like we're still running the bank until we sign a deal - just type a letter up, sign my name, and put it out there. What's that? What do you say? Just say, a bank is like a business."
In general, investors overestimate how safe and sound small banks are. For example, look at HMPR and CWBS. Looked solid, but they weren't.
Tampa Bay Business Journal:
"A $45 million heist from thousands of ATMS likely isn’t an isolated incident.
Community banks have largely dodged cyberattacks, but they need to be prepared, industry experts told American Banker.
Regulators have been urging smaller banks to be alert, the trade journal reported. Lowell Dansker, chairman and CEO of Intervest Bancshares, attended a recent meeting hosted by the Federal Reserve Board, where a speaker told the audience that cyberattacks against smaller banks are inevitable.
“Smaller banks are dependent on core service providers who are supposed to be up-to-date about security,” Dansker told American Banker."