One small community bank stock I am bullish on today is Franklin Financial Services Corporation (OTCQX:FRAF) of Chambersburg, PA.
Given the physical locations of Franklin's branches and local market conditions in the area, I believe it's reasonable to anticipate that FRAF is being considered a target for acquisition.
Recent acquisition activity in the community banking sector suggests that a prospective acquirer would be willing to pay 125% of book value for a franchise like FRAF, which would equate to $28 per share - almost double FRAF's current trading price. For example, Renasant Corp (NASDAQ:RNST) just paid that much for First M & F Corp (NASDAQ:FMFC), and FRAF offers prospective acquirers better market share than...
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