Tim Meador
Long only, value, growth at reasonable price

Bank Of Utica: Buy A $1.00 For $0.65

Bank of Utica (BKUT, BKUTK) is a community bank in upstate New York that is trading at a 35% discount to tangible book value. This is despite having 93% of assets in liquid securities, from which it achieves returns on tangible common equity > 10% since 2010 while being over capitalized. This opportunity exists due to thinly traded shares, hard to find financial statements and management's control of voting stock. While management control limits potential catalysts, the bank has been well run, with tangible book value increasing every year since 2008. A repricing of the non-voting shares to trading at tangible book value would result in a 50% return on investment.

Bank of Utica has a market capitalization of $105M....

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