Small, micro banks

[weighingmachine]

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]

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 Monday at 07:17 PM by Value_Added

[tnathan]

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]

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]

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]

Some others not already mentioned:

Thomasville Bancshares (THVB)

Citizens Bancshares (CZBS)

United Bancorporation of Alabama (UBAB)

[wabuffo]

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