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  • Bank Of Utica, Do We Still Like It?  2 comments
    Oct 11, 2013 5:16 PM | about stocks: BKUT, BKUTK

    From time to time, I get asked whether or not we still like Bank of Utica (BKUT, BKUTK). Well...

    The non-voting shares (OTCQB:BKUTK) last traded $419.00.

    Tangible book value (not including unrealized gains on held-to-maturity securities) is $621.76.

    Tangible common equity to assets is over 17%. (!!!!!!)

    Non-performing assets and loans 90-days past due, as a % of assets, are 0.45%. (!!!!!!!!)

    In addition to trading for only 0.67x tangible book, being massively overcapitalized, and having very few non-performing loans as a % of its asset base, the stock trades for 8x earnings per share, and the dividend has increased every year since 1994.

    So, yes, we still like Bank of Utica very much.

    Themes: community banks Stocks: BKUT, BKUTK
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  • Asafren
    , contributor
    Comments (4) | Send Message
     
    In his last letter to shareholders, The president of the bank said that at a “normal” interest rates environment he expact the bank to earn only 7 m a year. If he is correct, the stock isn’t that cheap.
    What do you think about it?
    4 Nov 2013, 09:28 PM Reply Like
  • Aristides Capital
    , contributor
    Comments (313) | Send Message
     
    Author’s reply » I don't have the letter in front of me, but if I recall the comment, I believe it was actually guiding more towards a 7% return on equity, not $7 million a year in earnings. I thought it was sandbagging. But then again, if the future really is completely bleak, then maybe the bank with a $420 share price and a $685 adjusted tangible book value should just go ahead and sell itself for $700 or so and just be done with it. What other small banks are trading at 0.6x - 0.65x book? Only severely impaired ones. There are many banks with a 4% rotce that trade 0.9x book or more. There is nothing else like Bank of Utica trading for the valuation it trades for. It's dirt cheap.
    5 Nov 2013, 03:05 PM Reply Like
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