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Saturday, October 06, 2007

Two community banks (BOJF, SCCB)

Going back and looking at two community banks I had looked at in the past...

Bank of the James (BOJF, FDIC #35207, sec): $17 to $17.50 now down to $15.70 on the ask. They're repurchasing stock. The FDIC database now supports comparing 4 things (including 4 time periods of one institution). For BOJF, assets and earning assets have been steadily climbing each quarter to $246 million. Assets past due jumped in Q1 2007 much due to residential housing loans, however zero assets have been more than 90 days past due. Net interest margin is down slightly to 4.23%. ROA dipped to 0.64% and is back to 0.72% (was 0.85%). Efficiency ratio is 73.45%. Capitalization ratios are very solid and have actually improved. Net income dropped to $376K in Q1 from around $1.5 million in the prior two quarters, it's now back to $859K. I figure it's probably not worth more than $15 per share.

Seacoast Commerce Bank (SCCB, FDIC #57428): fell to $9.50. Assets steadily climbing. but equity has been dropping slightly so let's look at the losses: losses for Q1 and Q2, prior quarters were small profits. I'm thinking they've probably got crappy interest margins... nope, 4.96% net interest margin, so they probably have a high efficiency ratio, which they do at 112% (the ave small California bank has about the same ratio) and $2.64 million in assets per employee. Their total risk-based capital ratio is 27%, seems overcapitalized.

Looking at the peer group small banks in California, they've all been doing crappy for well over a year. A national peer group of small banks was doing just fine during the past two years. Interesting.

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