- Simplicity continues to focus on increasing their asset quality while at the same time managing costs to continue profitability
- Deposit mix is trending towards core deposits and savings instead of CDs leading to lower deposit costs
- Management has proven to be shrewd capital allocators by repurchasing ~19% of shares since Nov 2011 and are authorized to buy another 5% of shares; meanwhile, Simplicity continues to pay a dividend
- Management and directors are aligned with minority shareholders and the CEO has significant portion of ownership in options expiring in 2 years at strike prices near takeout value
- Peer valuation indicates that a 1x tangible book multiple is appropriate for Simplicity indicating short-term gains of 16%
- Takeout valuation indicates that
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