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Phil Timyan
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Phil Timyan is a private investor and hedge fund manager with over 25 years professional experience in community bank stock investment and shareholder activism. Over the years, Timyan has filed 13-Ds in ALGC, HRTB, FSVB, GSLA, RFSV, COMB, and RYFL. In 2003, he helped recap COMB by buying a 9.9%... More
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Timyan Community Bank Alertâ„¢
  • Major Turnaround Improving CITZ Stock Value At CFS Bancorp 2 comments
    Oct 30, 2012 7:40 PM | about stocks: CITZ

    RE: CITZ

    See also: Q3 Earnings Release

    When I last wrote about CITZ in the Timyan Bank Alert™ blog back in May, I admit I wasn't very optimistic.

    After years of mismanagement by former Chairman Thomas Prisby, it appears that under CEO Daryl Pomranke, CFS Bancorp is showing signs of a turnaround.

    In the release for the quarter ended June 30th, Pomranke predicted lower NPAs in the quarters to follow. True to Pomranke's word, NPAs declined 24% during the third quarter and are now a much more manageable 4.8% of assets, with further improvement promised.

    CFS Bancorp also managed to report earnings of 12 cents per share in spite of a healthy $1,160,000 Loan Loss Provision and an additional $1,074,000 in Other Real Estate Owned expenses. Unlike many banking companies that have reported results, CITZ's margin actually increased from the June quarter, to 3.47% from 3.41%.

    When the Company's Loan Loss Provisions drop to a more normal level, OREO expenses end, and the $100,000 plus per month severance to the former Chairman stop, reported earnings per share should improve dramatically.

    With CITZ stock trading at $5.60 or 56% of tangible book value ($9.94), I see an attractive investment opportunity available in this attractive Greater Chicagoland banking franchise.

    CITZ Stock Chart for past 10 years
    Courtesy of Nasdaq.com

    CITZ Stock Performance for past 10 years

    Disclosure: I am long CITZ.

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Comments (2)
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  • Arthur Cutton
    , contributor
    Comments (148) | Send Message
     
    Wow! A little better. Glad Prisby is gone.
    17 Dec 2012, 06:26 PM Reply Like
  • Arthur Cutton
    , contributor
    Comments (148) | Send Message
     
    A double since your post. Thanks!
    30 Jun 2013, 06:42 PM Reply Like
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