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Sunday, July 03, 2005

Back to the Community Banks

After dealing with some details of LiveWorld and BakBone Software, it's time to get back to the banks. Going through pretty much every single community bank in the US founded in the last 5 years with between $10 million and $100 million in assets (about 430 of them), the list below contains just about all of the ones which are public or somewhat-public companies and aren't totally retarded, not including stuff I've already looked at. The next step is going to be doing a very rough valuation on these and look for potential investments.

recent community bank investor conference
and the previous one
America's Community Bankers. These people seem to use the term "community bank" somewhat loosely: it's still M&A and consolidation, just on a smaller scale. A lot of them are terrible at presenting. Most are totally full of themselves and phoney. But my sense is that in the long run, that sort of hybrid bank structure is probably the way to go: everything the customer doesn't see gets done in a central location on a large scale. The individual banks are only there as a customer interface.

Worth looking into: GBTB, OCFC. There could very well be a Sam Walton out there somewhere.

WARNING: Only those entries with a green v have been verified with highest certainty that the FDIC cert, website, and stock ticker are all for the same banking entity. In some cases the holding company covers more than the banks listed. I'll generally throw those out except for some special cases.

1st Regents Bank (Alliance Bank Shares Corp),v #57157: ticker?
Good numbers, net int margin. 70% built. under-provisioned? Need to find the holding company (not ABVA).
United American Bank (Amtrust),v #57447: UABK
efficiency is bad, high non-interest expense.
Beach Community Bank (Beach Community Bancshares),v #57131: BCBF
$332million assets. fully leveraged. not bad numbers. Maybe worth $50 million.
Bridge Bank (Bridge Capital Holdings),v #57086: BBNK
Again, too much assets for what I'm looking for. Might be overpriced. Net interest margin is above 6% in Q1. Currently about 6.15 million shares. Market cap about $98 million, $15.95 per share ($5.58 in book value per share). This is a P/E above 30!
Napa, BofMich, Sunrise, BLV, Pt Loma, Escondido (Capitol Bancorp),v Ltd: CBC
T Bank (First Metroplex), #57703: FMPX
First Bank of Henry County (Firstbank Financial Services),v #57017: FBHC
Frederick County Bank (Frederick County Bancorp),v #57255: FCBI
Western Security Bank (Glacier Bancorp),v #57248: GBCI, GBCIP
Hancock Bank of Florida (Hancock Holding Company),v #57819: HBHC
Arizona Bank and Trust (Heartland Financial Usa 1206546),v #57620: HTLF
[enough with the holding companies for now, I'll verify these if I need them]
Heritage Bank (Heritage Bancshares) #57548: HBKSE
Lakeview Bank (Lakeland Bancorporation) #57785: LBAI
Franklin Community Bank (Mainstreet Bankshares) #57259: MREE
Marco Community Bank (Marco Community Bancorp) #57586: MCBN
New Century Bank of Fayetteville (New Century Bancorp) #57609: NCBC
New Southern Bank (Nsb Holdings) #57213: NSBG
Premier Commercial Bank (Prem. Comm. Bankcorp) #57231: PCBP
Rockford B&T, (Qcr Holdings) #57927: QCRH
Cedar Rapids B&T (Qcr Holdings) #57244: QCRH
Republic Bank & Trust Company of Indiana (Republic Bancorp) #57146: RBCAA
The Bank of Southern Connecticut (Southern Conn. Bancorp) #57251: SSE
SNB Bank of Wichita (Southwest Bancorp) #57583: OKSB
Cohutta Banking Co of Tenn (Synovus Financial) #57913: SNV
Synovus Bank of Jacksonville (Synovus Financial) #57725: SNV
United Bank & Trust - Washtenaw (United Bancorp) #57133: UBCP
Advantage National Bank (Wintrust Financial Corp) #57013: WTFC
Beverly B&T (Wintrust Financial Corp) #57701: WTFC
Bucks County Bank (Yardville National Bancorp) #57804: YANB

Parkway Bank #57158,v : PKWY
They got some sort of recent infusion of equity. Numbers got better this last year. ROA 1.18%. Net interest margin 4.18%. Efficiency 72%. Assets per emp 2.81m. Equity to assets 15.21%. Total risk-based capital ratio 20.23%. Earnings about $1million/yr. Equity $11.5million. 1.178 million diluted shares. Recent price $12.50 (book value per share is $10.02). P/E based on Q1 earnings would be 15.6.
Connecticut River Community Bank, #57475,v : CRCA
Damn computer locked up before I saved the info (and it's Linux!). Anyway, net interest margin is low 3.93%. ROA is 0.4%. They just cleared breakeven. There was some large infusion of equity (like PKWY). I can't figure out much without having a fully diluted share count. Equity now is $10.8 million. They aren't yet fully leveraged. Not a stellar bank from what I can tell.

Recent stock price $11.
Golden State Business Bank, #57585,v : GSBB
Ojai Community Bank, #57850,v : OJCB
Santa Cruz County Bank, #57591,v : SCZC
Commonwealth Business Bank, #57873,v : CWBB
Cortez Community Bank, #57625,v : COTZ
Stonegate Bank, #57934,v : SGBK
This bank has only 1 quarter of history. Very "de novo". The shares are trading around $12, but there aren't any easily obtainable financial statements from the company.

Stonegate Bank is traded on the bulletin board. Our symbol is SGBK. If you want to inquire more about the stock, please contact one of our market makers listed below.

Sam Haskell
Sterne, Agee, and Leach, Inc.
1 (866) 378-3763

Curtis Thompson
Moors and Cabot Capital Markets
1 (800) 436-2330

FIG Partners, LLC
Eric Lawless
1 (866) 344-2657

CenterState Bank Mid Florida, #57334: ???? (not CSFL)
Nature Coast Bank, #57773: NCBF
Pacific Valley Bank, #57740: PVBK
PVBK, 1,237,500 weighted ave shares outstanding for 2004 (unchanged during the year). 371,250 reserved for options, 10 year expiration, market price. All were granted in 2004. Ave strike about $12.31. Vesting is in thirds. Recent stock price is $18 to $20. Market cap is about $25 million.

Q1 05: $38 million assets (up from $28 million Q4 04, $14 million Q3). 15 employees holding steady. $18.7 million net loans. $15.6 million in real estate loans: $3.4 million single residential, $6.6 million multifamily. Very little commercial loans, $2.5 million farm loans (no farm land). $0.63million fixed assets. $27.5 million deposits (up from $16.6 million), nearly all interest bearing (mostly in money market, then time deposit 100K+, then other time, then savings, then NOW: most mature in 2005). $19.5 million deposits over $100K. $10.9 million equity (net of $1.4 million losses). No derivatives. $1.3 million unused commitments (mostly commercial real estate). Zero loans past due. Net loss trending well, currently $0.335 (4% of assets). 1.1% provision. Yield on earning assets 4.4%. Cost of funding earning assets 1.38% (net interest margin 3.02%). Equity/assets 28%. Loans/deposits 68%. Total risk-based capital ratio 61%. NOLs of $0.547million. $800K related party loans. Director's company did the construction. Expenses look standard.

Stock price is a bit on the high side.
First Community Bank of Jolliet (already covered earlier on this blog)
Embassy Bank, #57228: call (610) 882-8800 for buying/selling shares
Century Bank, #57720: CBAO
First Sound Bank, #57799,v : FSWA
Another very new bank. Only 3 quarters. Still way under leveraged. 2 million shares outstanding. Shares trade around $13.50: market cap around $27 million. Around $18 million equity. Losses for the last three quarters (in reverse time order): $0.575million, $0.581million, $0.790million. Liabilities: $38million, $28million, $4.8million.
Private Bank of the Penninsula, #57510,v : PBPC
1,843,000 shares outstanding. 161,250 options outstanding. Assets nearly doubled in the last year (though not much this last quarter). Cost of earning assets is extremely low, 23.6% equity to assets, 83.6% net loans and leases to core deposits, 22.6% transaction accounts, 15% non-interest bearing deposits. So why is the cost of earning assets 0.88%? Anyway, net interest margin is 3.5%. Non-interest expense is close to 6%. Total risk-based capital ratio is 33%. They can pretty much double their assets with the current structure. Everything is trending well over the last year. 0.43% assets are past due (commercial/industrial loan, less than 90 days), their first non-performing asset. 12% of assets are 1-4 family real estate loans (6% home equity, 2.4% junior liens). 17 employees (2 added this year). If they weren't located in Palo Alto, ground zero of the real estate bubble, I'd roughly say the stock is worth around $7.5. But being where they are, it's totally off limits. It's selling for $13.50.
River City Bank (already covered earlier on this blog)

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