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Simple Investment With Simplicity Bancorp

Executive Summary

    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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