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  • Flagstar Bancorp's Turnaround Has Potential For Above Average Returns [View article]
    I hope that means you found something you liked. My fellow bank followers are a quiet bunch.
    Jul 31, 2015. 07:57 PM | 2 Likes Like |Link to Comment
  • ADT: Attrition Naturally Falling, Upside Remains Significant [View article]
    Thanks for the write-up Terrier, I always enjoy reading your work.

    I go back and forth on this one but was wanting to know what you thought about COF after the recent pull-back. I think I got in on the warrants around the same time you started writing about them, tempting to add here. Not the right comment section but thanks again for the article on ADT.
    Jul 31, 2015. 08:40 AM | Likes Like |Link to Comment
  • First Connecticut Bancorp Is At A Crossroads [View article]
    Thank you for sharing I really appreciate the detail you provided. It does take time to grow margins after conversion but the bank appears to leave no stone un-turned, as I hope I got across in the article. It will be interesting to see how this plays out, I just lose a little confidence when I start to think a more focused effort is required and goals start to point in different directions. For example, continuing the buyback program while adding debt to grow assets. This is just my preference but at least the bank has options. Thanks again, I'm glad you liked the write-up.
    Jul 30, 2015. 11:36 AM | Likes Like |Link to Comment
  • National Bank Holding Corporation Keeps Adding To Its Core [View article]
    Thank you Loonsong I will definitely check out SONA, I appreciate the feedback.
    Jul 29, 2015. 10:33 AM | Likes Like |Link to Comment
  • Chemung Financial's 4% Yield Is On Sale [View article]
    Thank you pgace, if you check it out and find anything I missed or got wrong please let us know.
    Jul 28, 2015. 04:23 PM | Likes Like |Link to Comment
  • National Bank Holding Corporation Keeps Adding To Its Core [View article]
    Thank you Loonsong. If you are open to sharing, are there any interesting names that you've been looking at lately?
    Jul 28, 2015. 08:15 AM | Likes Like |Link to Comment
  • Will Cashmere Valley Bank's Above Average Growth Lead To A Higher Dividend? [View article]
    Thank you loonsong, looks like your agricultural risk alarm was on point. I really got close to adding this one but I'm still building a couple other positions. Thanks again.
    Jun 20, 2015. 08:13 AM | Likes Like |Link to Comment
  • Bridge Bancorp: Growth At All Costs [View article]
    Hello Yuanxi, the merger closed on the 19th.
    Jun 20, 2015. 08:11 AM | 1 Like Like |Link to Comment
  • Bridge Bancorp: Growth At All Costs [View article]
    Thank you loonsong, as always. I think my new goal in life is to cover a bank you haven't already reviewed. Hope you like the Cashmere write-up, its a solid bank.
    Jun 17, 2015. 10:20 PM | Likes Like |Link to Comment
  • California Republic Bancorp: The Little Engine That Might [View article]
    Gary, thanks for the write-up, looks like our valuations did differ in the end after all. You took a heavy hand here by discounting the bank's past earnings, and not their future ones. Why is that? I agree with the assumptions and your conclusion about ARBV, but don't understand how the same framework produces such a different valuation here. CRPB is growing faster and has a ROE that is 29.4% larger than the one you calculated for ARBV, and that's after you increased/'normalized' some of CRPB's costs, but you conclude ARBV deserves a larger premium. 
    My concerns: You more than doubled the charge-off and interest rate by 'normalizing' them, then applied them to the past (a huge difference that created a higher efficiency ratio). You also forgot to mention the growing servicing rights and sec. sales. Your economies of scale graph indicates no benefit from larger headcount when security sales is up 115% to employees 61%, and the bank's pace in the first quarter would improve the 2014 number by 40%, making the two year increase 286%. I don't think this is a good judge of economies of scale to begin with, but it's doubtful the number of employees will have to increase by this much to produce said result. 
    Jun 16, 2015. 12:23 PM | Likes Like |Link to Comment
  • First Mountain Bank: Potential 20% Upside In An Imminent Deal [View article]
    $146 million in assets with 6.86% nonperforming and only covered 30% = $7M in noncovered nonperforming assets that are used in the calculation of $12.5 million equity. If this is correct, 1X reported book value is already looking like a premium. 
    Jun 12, 2015. 11:23 AM | Likes Like |Link to Comment
  • Lighthouse Bank's Growing Dividend Is Worth A Look [View article]
    Thank you Ryan, there's a lot in there so hopefully you find this answer helpful.

    - The dividend was a special one, and I didn't do a good job emphasizing that in the article. With that said, I expect it to become more regular because of how it was announced. If I remember correctly, the bank mentioned at the time that they weren't allowed to payout one prior to this, and I got the feeling this is going to be the 1st of many. Again, it is a special dividend, but under the circumstances I think it will continue and grow (no mention of change to quarterly).

    -Considering where rates are right now, I'm not too concerned with loan growth, but the new headquarter may help with this going forward. I think they are taking growth day by day right now, but eventually the company will get to a point where they will need to decide if they want to branch out, or dig in and start increasing the payout ratio. If they branch out, probably a discussion about moving exchanges will occur, but at there current size this is pretty far away.
    My wife likes to call this sort of play a crock-pot investment. Set it and forget it.
    Jun 10, 2015. 10:09 AM | 1 Like Like |Link to Comment
  • American Business Bank Is Focused On Higher Returns [View article]
    Thank you Loonsong, let me know what you think!
    Jun 10, 2015. 09:01 AM | Likes Like |Link to Comment
  • Should Fulton Financial Really Be Buying Back Shares? [View article]
    Thank you bea, I do not live in the area, but I always enjoy hearing from people that do because there's a lot you can't get from research alone. Good luck.
    May 31, 2015. 09:06 AM | Likes Like |Link to Comment
  • Should Fulton Financial Really Be Buying Back Shares? [View article]
    Yes, and I still concluded that they shouldn't be buying back overvalued shares. I see larger provision charges (though they were negative as of late so that's not a hard assumption to make) because I think the allowance account is light. And, if that's the case, tangible book value is overstated and the premium paid for the buybacks is even higher than what was posted in the article.

    Also, prepayments are to be considered but the bank could decrease the number of loans without any by not adding to the balance and paying of the outstanding amount as it comes due. Instead, we see them adding and using that money to expand commitments and decrease the capital account, which again increases the p/bv because they are giving away value when they purchase shares. Everything going on here is taking away value from shareholders.
    May 31, 2015. 09:01 AM | Likes Like |Link to Comment