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- Athens Bancshares reports earnings.
- The results reaffirm my thesis that the bank is limited in the ways that it can grow its bottom line.
- Although returns will pale in comparison to peers, the bank's buyback program will continue to be the main EPS driver .
- After converting from a mutual holding company in 2010, Athens Bancshares has been on a buyback spree that helped lift EPS 42% last quarter.
- The bank has a solid lending history with earnings increasing every year since its 2010 IPO.
- Now that the discount to book value is gone, management will need to choose between buying shares at a premium or significantly increasing the dividend payout.