District Banker

How To Buy a Bank (and Other Beaten-Down Stocks)

You really want to pay 2x TBV for HCBK, a company that generates 8% ROTE? Oh, and don't forget that over half of their 1-4 book is purchased (1/3 of which is NOT in NJ, NY, CT). Anyway, enjoy your investment in Interest-Only (they underwrite those), Low Doc/No Doc (yep, they're in those too) mortgages scattered across the country. Their 30 bps of reserves won't cover the losses, but their capital probably will.