weighingmachine Posted October 28 Posted October 28 anyone have small/micro US banks they follow, e.g differentiated business models (FFBB, Truxton, Hingham, University Bancorp) and/or quality management teams (West Coast Community, Independent Bancorp, Red River Bank)?
Value_Added Posted October 28 Posted October 28 (edited) G Bank - GBFH. Trades a bit expensive after the recent run-up but it’s a well run bank with near 50% insider ownership. High NIM, seemingly high quality nationwide SBA loans. There is also a huge call option on their gaming, credit card, and fintech division (could be worth billions over the long term) which is slowly and successfully playing out. This is what has created the high P/BV multiple (along with their rapid deposit and loan growth). Their high quality gaming deposits and credit card revenue are replacing their low quality deposits from CDs. Management seems well aware of the regulatory progression of fintech and gaming and they seem well suited to execute on their patents going forward. Interesting situation. Edited October 28 by Value_Added
tnathan Posted October 28 Posted October 28 Yes - I was looking at banks that trade at fair or depressed multiples of book value that have a clear path to growing book value if rates come down. I own FFBB, unib, and hifs. I think all 3 have good management teams
shhughes1116 Posted October 29 Posted October 29 Lots of different reasons to own banks. Because I am constrained in the parts of the market I am allowed to invest in, I spend a lot of time looking at banks. I like FFBB, UNIB, SBNC, LRBI, DENI, BEOB, FRSB, NBN. All for different reasons. I routinely flog myself for not owning more NBN, SBNC, and BEOB.
schin Posted October 29 Posted October 29 Awhile back I use to get the Walker's Manual looking for these small bank stocks like Trinity Bank and Burke & Herbert bank, I struggled to get a large position as it can take months to build it... and it was harder to get out. It can be a great long term, buy and hold forever.. but, their thinly traded market is hard.
KJP Posted October 30 Posted October 30 Some others not already mentioned: Thomasville Bancshares (THVB) Citizens Bancshares (CZBS) United Bancorporation of Alabama (UBAB)
wabuffo Posted October 30 Posted October 30 CASH, TBBK - best in class BaaS banks. Heading to 3%+ ROAs & 30%+ ROEs which is unheard of in the US banking sector. Strong repurchasers of common shares, to boot! Bill
weighingmachine Posted November 11 Author Posted November 11 On 10/28/2024 at 8:47 PM, shhughes1116 said: Lots of different reasons to own banks. Because I am constrained in the parts of the market I am allowed to invest in, I spend a lot of time looking at banks. I like FFBB, UNIB, SBNC, LRBI, DENI, BEOB, FRSB, NBN. All for different reasons. I routinely flog myself for not owning more NBN, SBNC, and BEOB. interesting list for sure, curious your thesis on Denali Bancorp?
shhughes1116 Posted November 12 Posted November 12 9 hours ago, weighingmachine said: interesting list for sure, curious your thesis on Denali Bancorp? When I bought it, it was right under book value. At the time, there was a pretty steady stream of branch closures by the money center banks in Alaska which I thought would help the three listed Alaskan banks (FBAK, NRIM, and DENI). The Denali deposit mix was terrible and seemed like it could improve over time (it did) as customers moved from closed money center branches to Denali. Denali is also the smallest of the three by a lot, which makes it pretty easy to take-out at a premium. In the meantime it is a steady EPS grower and you get paid to wait around. My main issue - a recent one - is the increasing share of construction loans. Feels like they are growing this right into the peak of the cycle.
Spekulatius Posted November 12 Posted November 12 FMCB is a fantastic run OTC traded bank trading for a very reasonable price. I bought a decent position (for me). Their niche is agricultural loans. They bought back a nice amount of shares (~5% outstanding) from an estate at a discount to prevailing market prices. https://www.sec.gov/ix?doc=/Archives/edgar/data/1085913/000114036124043159/ef20036803_8k.htm
hasilp89 Posted November 13 Posted November 13 14 hours ago, Spekulatius said: FMCB is a fantastic run OTC traded bank trading for a very reasonable price. I bought a decent position (for me). Their niche is agricultural loans. They bought back a nice amount of shares (~5% outstanding) from an estate at a discount to prevailing market prices. https://www.sec.gov/ix?doc=/Archives/edgar/data/1085913/000114036124043159/ef20036803_8k.htm How did you come across this bank? Have you followed for a while?
Spekulatius Posted November 13 Posted November 13 22 minutes ago, hasilp89 said: How did you come across this bank? Have you followed for a while? Since 2010. I found it because it was one the few 5* rated banks in CA after the GFC. They had absolutely no credit problems despite their home banking area getting devastated in the RE crash. RE went down more than 50% in the Lodi/ Central Valley area. It took me a while to find why that was the case. The stock right now trades at lower multiples than back in 2010, go figure.
hasilp89 Posted November 13 Posted November 13 (edited) Thanks @Spekulatius- Was it just due to good underwriting / good culture or something different? Edited November 13 by hasilp89
Spekulatius Posted November 15 Posted November 15 On 11/13/2024 at 9:37 AM, hasilp89 said: Thanks @Spekulatius- Was it just due to good underwriting / good culture or something different? I think the two are different sides of the same coin. They are conservative, cost conscious send they know their customers. They probably should be more aggressive. The bank is owned by individuals and the CEO owns quite a few shares , although he has reduced his position. I think most individuals whomped shares are descendants from the founding families. https://www.lodinews.com/news/article_5809c75a-cbdd-11e5-a619-bf990c8d57e8.html
Ascanius Posted November 16 Posted November 16 (edited) Currently invested in THVB, TRUX and OAKC These are quite cheap currently [8-11 PE depending on what you are looking at] with high ROE and quality management imo They all share the same business model - wealth management and private banking for business owners and HNWI. TRUX probably has the highest ratio of non-interest income to revenues followed by THVB and OAKC OAKC is by far the youngest of the group and trying to put prio on increasing ROE while slowing down growth. Any thoughts from you guys? There is a thread on TRUX but hasn't been posted to for quite a while. I've had some chat with @KJP on THVB and TRUX - are you still invested? Edited November 16 by Ascanius
KJP Posted November 16 Posted November 16 3 hours ago, Ascanius said: Any thoughts from you guys? There is a thread on TRUX but hasn't been posted to for quite a while. I've had some chat with @KJP on THVB and TRUX - are you still invested? Yes, I still own both.
weighingmachine Posted November 19 Author Posted November 19 On 11/16/2024 at 2:45 PM, KJP said: Yes, I still own both. @KJP on THVB what is your sense on their bench? The founders have been running it for decades now and not everyone wants to work til they are 90. Do you have any view on the next generation at Thomasville?
KJP Posted November 20 Posted November 20 21 hours ago, weighingmachine said: @KJP on THVB what is your sense on their bench? The founders have been running it for decades now and not everyone wants to work til they are 90. Do you have any view on the next generation at Thomasville? I have not met any of them. Any opinion I had would just be an inference from who hired, trained, and anointed them successors. Cheney is ~67 and I don't think Hodges has turned 60 yet, so current management still has some runway.
weighingmachine Posted November 20 Author Posted November 20 no one has mentioned Glacier Bank (GBCI) but that has been a good one over the years and an attractive niche up and down the Rockies.
KJP Posted November 20 Posted November 20 59 minutes ago, weighingmachine said: no one has mentioned Glacier Bank (GBCI) but that has been a good one over the years and an attractive niche up and down the Rockies. Glacier made a misstep on interest rate risk in its securities book during COVID and is still paying for that. It's also pretty well recognized as a quality bank -- it has traded around 3x TBV for many years. And have returns for shareholders been good? 10-year total return looks to be around 10% annual and 20-year return lower than that, if TIKR isn't leading me astray.
weighingmachine Posted November 21 Author Posted November 21 agree the post Mick Blodnick era at Glacier has been less than stellar. they still have a unique map though so one to watch
Spekulatius Posted December 7 Posted December 7 More action around FMCB. I don’t know who these Cortopassi Partner guys are, but they took a 4.5% position: https://www.sec.gov/Archives/edgar/data/1085913/000119312524270686/d900887dsc13ga.htm
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