Stewardship Financial (SSFN) is a New Jersey community bank which specializes, generally speaking, on commercial lending. The bank is rather unique, giving away a tithe of pre-tax earnings annually. While this implies a built in expense of 10% of pre-tax earnings, I believe it sets the bank apart and increases its standing in the community.
Given the current net interest income of the bank and historical charge-off averages, the bank most likely has an earning power significantly above the recent TTM earnings. The bank trades at a market capitalization of $30 million against tangible book value of $40 million -- and the bank could conceivably earn between $4 million and $5.5 million. The math to get to those...
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