Monday, June 06, 2005
First Community Bank of Joliet
Yet another new community bank (website). They had sort of a 'private IPO' for Joliet area investors only and had more offers ($26 million) than authorized capital ($18 million). I've only briefly looked through the FDIC numbers (certification #57681), but I figure the business is probably worth about $17 a share (1.8 million shares outstanding).
UPDATE July 1, 2006: Someone was searching for this, so I figured I'd update it. Looking at the FDIC database results as of March 31, 2006 and comparing this to March 31, 2005...
Assets have nearly doubled (good). Loans are spread out across a variety of areas. Equity capital has nearly doubled (very good). Assets past due constitute 0.25% of total assets, which isn't bad. Most of that is commercial and industrial loans with a tiny part loans to individuals. All of it is 30-90 days overdue.
Interest income is way up (tripled). Net income for the quarter is $373K (vs a loss).
Performance ratios are good. Net interest margin is 3.72%. Return on assets is only 0.86% which isn't unheard of, but not great. Return on equity is 5.10%, which is reasonable. Efficiency ratio is 44.17%, which is very good. $9.31 million dollars in assets per employee.
And now I see the reason for the lackluster returns. Their various capitalization ratios are still very high, meaning they still aren't leveraged enough (not enough loans and deposits compared to the equity in the business). Of course that makes the business very stable and solid, but it causes low returns for investors. Considering that assets have increased so much, I wouldn't worry much about it.
They have $29.5 million in equity capital. The stock might be worth, say, $45 million? If they still had only 1.8 million shares outstanding (which might not be the case) then the shares might be worth perhaps $25.00.
First Community Bank of Joliet stock is not traded on any stock exchange. To buy or sell the Bank's stock contact John Spanich, Chief Financial Officer at 815-725-0123.The bank started up on June 14, 2004 and they have ramped up very quickly. Business is very good.
UPDATE July 1, 2006: Someone was searching for this, so I figured I'd update it. Looking at the FDIC database results as of March 31, 2006 and comparing this to March 31, 2005...
Assets have nearly doubled (good). Loans are spread out across a variety of areas. Equity capital has nearly doubled (very good). Assets past due constitute 0.25% of total assets, which isn't bad. Most of that is commercial and industrial loans with a tiny part loans to individuals. All of it is 30-90 days overdue.
Interest income is way up (tripled). Net income for the quarter is $373K (vs a loss).
Performance ratios are good. Net interest margin is 3.72%. Return on assets is only 0.86% which isn't unheard of, but not great. Return on equity is 5.10%, which is reasonable. Efficiency ratio is 44.17%, which is very good. $9.31 million dollars in assets per employee.
And now I see the reason for the lackluster returns. Their various capitalization ratios are still very high, meaning they still aren't leveraged enough (not enough loans and deposits compared to the equity in the business). Of course that makes the business very stable and solid, but it causes low returns for investors. Considering that assets have increased so much, I wouldn't worry much about it.
They have $29.5 million in equity capital. The stock might be worth, say, $45 million? If they still had only 1.8 million shares outstanding (which might not be the case) then the shares might be worth perhaps $25.00.
// posted by Bruce @ 8:46 PM 
