Should You Hold M&F Bancorp (MFBP)?
Investment management company River Oak Capital recently released its second-half 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund returned 8.3% compared to 26.3% for the S&P 500, 16.9% for the Russell 2000, and 9.3% for the Russell Microcap Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
River Oak Capital featured stocks such as M&F Bancorp, Inc. (OTC:MFBP) in the fourth quarter 2023 investor letter. Headquartered in Durham, North Carolina, M&F Bancorp, Inc. (OTC:MFBP) is a bank holding company for the Mechanics and Farmers Bank. On February 16, 2024, M&F Bancorp, Inc. (OTC:MFBP) stock closed at $11.90 per share. One-month return of M&F Bancorp, Inc. (OTC:MFBP) was -20.00%, and its shares lost 51.02% of their value over the last 52 weeks. M&F Bancorp, Inc. (OTC:MFBP) has a market capitalization of $24.376 million.
River Oak Capital stated the following regarding M&F Bancorp, Inc. (OTC:MFBP) in its fourth quarter 2023 investor letter:
"M&F Bancorp, Inc. (OTC:MFBP) is a community bank in Durham, North Carolina. It is our fourteenth largest position in the fund and now has a market cap of $30m.
In December, I re-connected with CEO James Sills. James has a phenomenal reputation throughout the community banking industry, but he is faced with the challenging prospect of growing M&F Bank from its subscale position of a ~$450m asset bank to $1+ billion asset bank over the next few years.
Due to their 2022 ECIP funding , M&F Bank still has ~$75+m in cash - 2.5x their current market cap - meaning the company has more than enough liquidity to grow to a $1+ billion asset bank.
The question is: can they get there through organic growth alone? James has said they’ve looked hard for an acquisition that could get them closer to $1 billion in assets, but they have yet to find anything attractive…”(Click here to read the full text)
Hands typing on a laptop, demonstrating the company's online banking services.
M&F Bancorp, Inc. (OTC:MFBP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
