sleepydragon Posted February 2 Posted February 2 23 hours ago, schin said: I would love the counterargument or an example of a good regional to invest in that is undervalued like Citigroup or even an international global bank like Deutsche Bank, Barclays, Unicredit, BNParabis, Commerzbank, ABN Amro. (I just listed 6 banks that priced below book and with stronger CET1 ratios) Just feel the dynamics the large money center bank is easier... There is definitely finish in the smaller pond of regional banks.... but, I think it's easier now for the larger banks. have you looked at BANC of California? it’s trading below tbv and 7x management guided pe. I think the stock hasn’t moved much yet because even the management is not sure what the future earning is going to stabilize at yet (they just closed the deal with PACW), and of course they are very small . anyone has options about it?
Spekulatius Posted March 4 Author Posted March 4 (edited) If someone is interested in a very well run smaller bank - FMCB may fit the bill. They are Farmers and Merchants Banks in Lodi and specialize in agricultural loans. ROA and ROE are very healthy. Even during the GFC, they did not have much issues with credit quality and they are always running well capitalized. The stock used to be quite expensive relative to other banks, but it’s not relatively cheap and they also started to buy back shares, which to my attention. Trades on OTC and is insider controlled. https://www.otcmarkets.com/stock/FMCB/news I bought shares around current prices and added a few today. Edited March 4 by Spekulatius
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