Monday, April 29, 2013

Update of Lottery Ticket and Regional Bank Basket Strategies/Bought 80 MNRK at $9.97/Pared Trade: Bought 50 SYBT at $22.16 and Sold 50 SBSI at $21.27/Bought 50 AXU at $2.73 & Sold 40 SVU at $5.94-LT Basket/FMER, PBCT, TRMK, KEY, FNB, BHB, CBU, VLY

Both the Regional Bank and Lottery Ticket Basket strategies are updated on the last Monday of each month. The prices shown in the following tables are from last Friday. My basket strategies will have a large number of securities in them. The focus is on the overall return of the basket rather than on any component.

1. Update for Lottery Ticket Basket Strategy:

The Lottery Ticket Basket Strategy uses a deep contrarian value strategy, appropriately characterized as catching a "falling knife". A common criteria for the stocks contained in this basket is a smashed stock price at the time of purchase and an ugly looking chart. Any technical analyst would most likely have a sell rating on the stock.

Selections are made primarily on statistical criteria including price to book, price to sales, forward P/E, cash per share and/or free cash flow. I spend anywhere from thirty minutes to an hour researching a potential purchase prior to purchase.

For many selections, I may be pessimistic about the firm's future, but not as pessimistic as the market. I will also occasionally see a ray of light at the end of a dark tunnel. Since I expect failures, which are inevitable and unavoidable in this kind of approach, I limit my exposure to $300 per stock plus any prior trading profits. 

After experiencing some success with this strategy, I now have a requirement that my total investment in all LT holdings can not exceed my total realized gains for this basket strategy. My total exposure is currently under $8,000.

Snapshots of realized gains can be found at the end of the Gateway Post on this topic: Stocks, Bonds & Politics: Lottery Ticket Strategy: New Gateway Post

I sold my 40 shares of SVU at $5.94, realizing a $57.51 loss, after reviewing what I considered a disappointing earnings report.

Realized Gains To Date: $12,326.2

Table of Current Holdings:

Lottery Ticket Basket as of 4/26/13
Currently, the largest unrealized gain is 56% from the 30 shares of Forest City Enterprises (FCE-A: 18.47 +0.12). The largest unrealized loss continues to be Velti at -74%.

National Penn Bancshares (NPBC) is under consideration for a promotion to the Regional Bank Basket Strategy which would allow for another purchase. This bank has been increasing its quarterly dividend after slashing it from $.17 per share to $.05 and then to a penny in 2009. The quarterly dividend is back up to $.10 per share. National Penn Bancshares, Inc. - Investor Relations The 2013 first quarter earnings report was just okay. National Penn Bancshares, Inc. Reports First Quarter 2013 Results As of 3/31/13, the net interest margin was 3.49% (down from 3.55% in the 2012 1st quarter); the efficiency ratio was at 58.61%; adjusted E.P.S. was $.16, down from $.17; delinquent loans to total loans was at .46%; the coverage ratio was 199.3%; and the total capital ratio was 16.67%.

A. Bought 50 AXU at $2.73 (See Disclaimer): 

Bought 50 AXU at $2.73
Gold and silver mining stocks plunged in early April, far more than the declines in silver and gold prices. My recent nibbles in this industry sector are under water. Needless to say, I am keeping my investments at insignificant amounts with a long time horizon if necessary. When I refer to the LT strategy as catching a falling knife, these recent gold & silver mining purchases illustrate succinctly what is meant by that phrase.

Alexco Resource (AXU) is primarily a silver miner but also has some production in zinc, lead and gold.  It is headquartered in Vancouver and has its principal mining activities concentrated in the Keno Hill District of Canada's Yukon Territory.

A long term chart reveals a stock on a roller coaster ride. A low was hit at less than $.5 back in December 2008. Thereafter there was a rocket launch to a high of $10.17 in April 2011, followed by a descent to its current price. AXU Interactive Chart A smashed stock price and an ugly looking chart are characteristics common to all Lottery Ticket selections.

For the mining stocks recently purchased as part of the Lottery Ticket or Flyer's Basket Strategies, they do not have other characteristics common to selections in those high risk categories, such as a Price to Sales and Price to Book Ratios at less than 1, a single digit P/E, an appetizing P.E.G. ratio, and/or any other criteria usually found in those selections.

Alexus does currently have a forward P/E estimate of 10.84, AXU Key Statistics, which is better than most miners, but I would take any estimate for gold and silver mining companies with a grain of salt.

For the 2012, Alexco reported net income of C$3.4M or C$.06 per share. The company produced 2,150,959 ounces of silver at its Bellekeno Mine, located in Canada'sYukon Territory. In addition to silver, that mine also produced 17.2 million pounds of lead and 4.8 million pounds of zinc. Cash production costs for the year were $11.89 "per ounce of payable silver produced, net of by-product credits." The averaged realized price for silver was USD $31.54 per ounce; USD $.95 per pound for lead; and USD $.89 per pound for the zinc.

The company also expects that the final permit necessary for commencement of operations at its Onek  and Lucky Queen mines, a water permit, is "anticipated early in the second quarter of 2013".  With that permit, the company expects production from Onek to commence in the 2013 second quarter followed by Lucky Queen in the third quarter.

A new exploratory mine, Flame & Moth, is estimated to have 22.9M ounces of "indicated silver". The company has two other exploratory properties: Bermingham and Husky.

During 2013, the company anticipates that its Bellekeno mine will have silver production "in the range from 1.9 million to 2.1 million ounces, approximately 17 million pounds of lead, and 9 million pounds of zinc".

As of 12/31/12, the company had C$23.088M in cash.

The author of an article, published by Seeking Alpha, claims that demand for silver coins and the ETF SLV have remained robust as silver has declined in price.  

AXU was mentioned positively by an analyst in this Seeking Alpha article.

Last Friday's Closing Price: AXU: 2.04 -0.13 (-5.99%)

B. Boyd Gaming (own): On 4/11/13, Boyd Gaming shares rose 14% after Morgan Stanley upgraded BYD to outperform and raised its price target to $12 per share. According to Barrons, the upgrade is based on the likely increase in online gambling after New Jersey approved online gambling last February. MS expects online gambling to become as big as the gambling centers in Las Vegas and Atlantic City combined by 2020. MS views Boyd to be the best positioned among its coverage universe of gaming companies to take advantage of this trend, given its size and positioning.

Close on 4/11/13: BYD: $8.85 +0.65 (+7.93%)

Last Wednesday, Boyd Gaming reported better than expected first quarter results, beating expectations by 6 cents per share. Adjusted earnings were reported at $.01 per share. For its wholly owned businesses, revenues increased 25.1% to $569.9M with a 42.3% in adjusted EBITDA to $135.1M.

Close on 4/24/13: BYD: $10.98 +2.03 (+22.68%) 

It has taken two recent large percentage gain to bring me into profit territory on my Boyd common LT purchase:

Bought  30 BYD as an LT at $9.78

I have made money on Boyd's bonds and currently own just 1 senior unsecured bond maturing in 2018:

Bought 1 Boyd Gaming 9.125% Senior Bond Maturing on 12/1/2018 at 89 (October 2011)

FINRA - Investor Information on BYD 2018 Bond

Last Friday's Closing Price: BYD: $11.48 -0.01 (-0.09%)

2. Update for Regional Bank Basket Strategy

This strategy is explained in my Gateway Post on this topic:


I am not tracking reinvested dividends in the following table. The dividend yield showed in this table is calculated by Yahoo Finance based on last Friday's close. My dividend yield for each position will be different based on my total cost numbers. In most cases, with FNFG and VLY being notable exceptions, my dividend yield will be higher. Needless to say, the dividend yield for each position is higher than the 1.668% yield on the 10 year treasury as of last Friday's close. Standard Chart - Most of the dividend yields are higher than the 2.862% yield on the 30 year treasury (Standard Chart -, and many of these banks are raising their dividends. A buyer of that 30 year treasury bond with a 2.862% is stuck with that yield until the bond is sold.

Over the life of this basket strategy, I anticipate that the dividends will provide 40% to 50% of the total return. I am generally keeping my total exposure between $40,000 to $50,000.

Since the last update, I sold my 200 share position in Sterling Bank (STL) after it agreed to be acquired by PBNY. Sold 200 STL at $11.39 (4/9/13 Post)

Realized Gains To Date: $10,862.71
Dividends 2010-2012: $4,690.79

Table of Current Holdings:

Regional Bank Basket As of 4/26/13
Unrealized appreciation is approximately $2,800, down from $4,500 as of the last update. Most of that downdraft is due to price depreciation with some caused by profit taking. The STL transaction netted $491 in profits and less than $40 was realized in the SBSI disposition discussed below.

A.  CNB Financial (CCNE): CNB Financial announced that it would acquire The Farmers Citizens Bank (FCBZ) for $30 in cash and stock or approximately $40.4 million. FCBZ has 8 branches in northern and central Ohio with its headquarters in Bucyrus, Ohio and a presence in the greater Columbus area. Locations | Farmers Citizens Bank Prior to this acquisition, CNB Bank had branches only in Pennsylvania. CNB Bank - Locations & Hours CNB expects the transaction to be accretive to earnings in the first full year.

Bought 50 CCNE at $11.06 (June 2010).

This position is flying well under my radar.

I drew a blank on CNB's dividend history, so I checked it out. CNB Bank - Stock Splits/Dividends The bank has been paying a $.165 per share quarterly dividend since the 4th quarter of 2008. Prior to that time, the dividend was raised every year since 1991, with a few special dividends. Hopefully, the bank will soon return to a dividend grower. The payout ratio is 49%.

For the 2013 first quarter, CNB Financial Corporation reported net income of $4.3M or $.34 per share, down from $.35 per share in the 2012 first quarter. As of 3/31/13, the net interest margin was 3.41%; the NPA ratio was at .93%; the total risk based capital ratio was 15.53%; the tangible equity to tangible asset ratio was at 7.51%; the return on average assets was .96%; the return on average equity was 11.76%; and net charge offs to average loans was .47%.

Last Friday's Closing Price: CCNE: $16.15 -0.31 (-1.88%)

B. Pared Trade: Sold 50 SBSI at $21.27 and Bought 50 SYBT at $22.16 (see Disclaimer):

Pared Trade Regional Bank Basket Strategy

I have previously bought and sold both S.Y. Bancorp (SYBT) and Southside Bancshares (SBSI) in this basket strategy.

The dividend yield based on regular quarterly dividends is almost identical for these two stocks. The reason for the trade is that SBSI is selling at a higher P/E and has a lower quality of past earnings.

As I noted previously, SBSI's earnings have been significantly supported by realized profits from the sale of securities.

The consensus E.P.S. estimate is for $1.42 in 2013 and $1.32 in 2014. SBSI Analyst Estimates

SBSI reported diluted E.P.S. of $2 in 2012, down from $2.21 in 2011. Press Release 12-31-12 The bank reported $34.695M in net income earned for 2012. The profit from the sale of securities was $17.966M, up from $11.795M in 2011. The realized profits from security sales were $25.789M in 2010 and $33.446M in 2009. Those gains have supported special dividends in addition to the regular quarterly dividends. Southside Bancshares Investor Relations

A far more reliable source of income would be from banking operations. While it is commendable that SBSI has been able to earn such large gains from trading activities, conditions have been optimal for generating this kind of non-recurring profits over the past several years. Without significant gains, the core operating earnings would likely be below $1.5 in both 2013 and 2014, particularly since the bank's net interest margin is shrinking, falling to 3.09% in the 2012 4th quarter from 3.47% in the 2011 4th quarter.  I made this same point in a comment to a bullish Seeking Alpha article on SBSI and in previous posts on SBSI. Item # 3  Bought 50 SBSI at $20.2 (11/9/12 Post).

SBSI does have good NPA and NPL ratios. The capital ratios are excellent.

SBSI did recently declare its normal 5% stock dividend. It intends to maintain its quarterly dividend rate at $.20 per share, which effectively gives its shareholders a 5% dividend boost after they receive the stock dividend shares. Southside Bancshares Declares 5% Stock Dividend I have zero interest in those kind of stock dividends.

I realized a gain of $39.37 on this last transaction plus $36.5 in dividends:
2013 SBSI 50 Shares +$39.47

SBSI Transaction Since Last Purchase

This brings my total realized gain from SBSI trades to $345.11 with the following prior transactions which netted $305.74:
2011 SBSI 52+ Shares +$87.79

2011 SBSI 54+ Shares $120.9
2012 SBSI 100 Shares +$97.05
My only previous transactions in SYBT are summarized in these posts: Bought 50 SYBT at $21.84 March 2012-SOLD 50 SYBT at $24.31 July 2012

2012 SYBT 50 Shares +$107.58
SYBT is a bank holding company. Its operating bank is known as the Stock Yards Bank and Trust Company. The bank is headquartered in Louisville, Kentucky and has 31 branches as of 12/31/12, with 25 of those in the Louisville metropolitan area and 3 each in Cincinnati and Indianapolis. Item 2 at page  8 of the 2012 Annual Report: 10-K

For the year ending 12/31/12, the bank reported a diluted E.P.S. of $1.86, up from $1.71 in 2011. Other items of interest include the following:

Return on Average Assets: 1.25%
Return on Average Equity: 13.06%
Net Interest Margin 3.94%
Efficiency Ratio: 57.38%
Net Charge Offs to Average Loans: .6%
NPA Ratio: 1.74%
Tangible Common Equity Ratio: 9.52%
Total Risk Based Capital Ratio (Consolidated): 14.42%
Tier 1 Risk Based Capital Ratio (Consolidated): 13.17%

Subsequent to my purchase, SYBT reported first quarter results:

S.Y. Bancorp Reports Record Net Income for the First Quarter of 2013 of $6.8 Million or $0.49 Per Diluted Share

2013 First Quarter vs. 2012 First Quarter:
E.P.S.= $.49/$.47
Net Interest Margin: 3.83%/4.07%
Efficiency Ratio: 55.76%/52.32%
NPL Ratio=2.09%/1.9%
NPA Ratio=1.85%/1.84%
Coverage Ratio: 95.55%/107.35%
Net Charge Offs to Average Loans:  .14%/.17%
Total Risk Based Capital Ratio=14.86%/14.39%
Tangible Common Equity Ratio: 9.82%/9.37%
Annualized Return on Average Assets: 1.3%/1.29%
Annualized Return on Average Equity: 13.6%/13.13%
Quarterly Dividend Per Share= $.20/$.19

SYBT expects to close during the 2013 second quarter, subject to approvals, the acquisition of The Bank-Oldham County which operates 4 branches in Kentucky, one each in Pewee Valley, La Grange, Crestwood, and Prospect. This acquisition is expected to be "slightly" accretive to SYBT's earnings per share. SEC Filed Press Release These branches are located in Oldham County, Kentucky, the richest county in Kentucky and 48th wealthiest in the country according to Wikipedia. This county is also part of the Louisville Metropolitan Statistical Area.

SYBT did not cut its dividend during the Near Depression period. The dividend was maintained at $.17 per share in 2008 and 2009 and was raised to $.18 in 2010. The rate was increased twice in 2012, first to $.19 and then to $.2 per share. Banking | Stock Yards Bank

I also believe it is important to examine how a bank performed during the recent recession. This information can be gleaned from a review of an Annual Report. I just look for a page that gives historical earnings information. While SYBT did suffer a decline in earnings during 2008-2009, the bank was still profitable during those years, earning $1.59 per diluted share in 2008 and $1.19 in 2009, and then rebounded in 2010 with a $1.67 diluted E.P.S. The NPL and NPA ratios stayed below 1 in those years. 2011 Annual Report, ‎10-k.

I left a comment to this Seeking Alpha article which briefly mentioned SYBT, but failed to adequately discuss the fundamentals and history.

Last Friday's Closing Prices:
SBSI: $21.11 +0.16 (+0.76%)
SYBT: $22.04 -0.23 (-1.03%)

C. FNB (own): FNB, the parent company of First National Bank of Pennsylvania, completed its acquisition of Annapolis Bancorp (formerly trading under the symbol ANNB). SEC Filed Press Release Annapolis had 8 branches in Anne Arundel and Queen Anne's Counties in Maryland. FNB has over 250 banking locations in Ohio, Pennsylvania, Maryland and West Virginia.

FNB Data as of 12/31/12: 10-K

2012 Diluted E.P.S.= $.79 up from $.7
Annual Dividend+ $.48 per share, unchanged since 2008
Net Interest Margin=3.73%
NPA Ratio .99%
Coverage Ratio=123.88%
Total Capital to Risk Weighted Assets (consolidated)=12.2%
Return on Average Assets=.94%
Return on Average Tangible Assets=1.05%
Dividend Payout Ratio 61.27%

I have bought and sold FNB. I currently own just 50 shares, the last shares bought using FIFO accounting. Added 50 FNB at $7.8 (July 2010 Post)

For the 2013 first quarter, FNB reported net income of $28.5M or $.2 per share.

Last Friday's Closing Price: FNB: $11.35 +0.02 (+0.18%)

D. KeyCorp and FirstMerit (own both): Both KeyCorp and FirstMerit were listed a mid cap value plays by the UBS analyst. The foregoing links are to an article at TheStreet which summarizes the UBS recommendations.

FMER was also favorably discussed in this article published at the investing website StreetAuthority. Of the four banks mentioned in that article, I currently own three of them as part of the regional bank basket strategy (FMER, FFBC and TRST) and have owned the fourth (ONB).

I recently pared my position by selling a higher cost 50 share lot: Item # 5 Sold 50 FMER at $16.9-2nd Pare of Higher Cost Shares (4/16/13 Post)

Last Tuesday, FMER reported first quarter earnings of $.33 per share, beating expectations by 2 cents. FirstMerit Reports First Quarter 2013 EPS of $0.33 Per Share

Some of the FMER highlights include the following:

2013 First Quarter vs. 2012 First Quarter
Net Income: $37.346M/$30.44M
E.P.S. = $.33/$.28
Net Interest Margin= 3.46%/3.78%
Efficiency Ratio= 62.06%/65.52%
NPA Ratio= .59%/.86%
Coverage Ratio= 254.32%/205.13%
Net Charge Offs to Average Loans=.27%/.62%
Return on Average Assets; 1.01%/.84%
Tangible common equity to tangible assets=8.03%/7.86%
Quarterly Dividend=$.16/$.16

FirstMerit- Earnings Call Transcript - Seeking Alpha

KeyCorp reported first quarter net income of $196M or $.21 per share, one cent better than the consensus forecast.

Last Friday's Closing Prices:
FMER: 16.88 +0.01 (+0.06%)
KEY: 9.80 -0.03 (-0.31%)

E. People's Financial (PBCT): People's United Financial increased its dividend to an annual rate of $.65 per share from $.64. For the 2013 1st quarter, the bank reported operating earnings of $.18 per share. Tangible equity to tangible assets was reported at 9.6%, with a total risk-based capital ratio of 13.7%. The NPL ratio was at 1.25% as of 3/31/13, down from 1.67% as of 3/31/12.

Among the negative factors, the payout ratio is close to 100%; net interest margin contracted to 3.38% from 3.97% as of 3/31/12; and the returns on average assets and tangible common equity are below most of the banks in my basket at .7% and 7.4% respectively. The contraction in net interest margin is a common problem now due to the Fed's monetary policies.

PBCT is a marginal hold.  I am keeping the shares for now due to the dividend yield at my cost and my overall favorable opinion of this banking institution. At my total cost of $11.55, which includes commission, the dividend yield at a $.65 annual rate is about 5.67%.

Over the long term, I anticipate that dividends will provide 40% to 50% of my total return in this basket strategy. The percentage contribution to total return is currently far less.

Bought 100 PBCT at $11.47 (June 2012)

Last Friday's Closing Price: PBCT: $13.13 -0.02 (-0.15%)

F. Trustmark (TRMK): Trustmark Corporation reported first quarter adjusted earnings of $.46, beating the consensus estimate by 5 cents: TRMK Analyst Estimates GAAP E.P.S. was $.38 which included non-routine merger related costs. During the quarter, TRMK completed the acquisition of BancTrust Financial headquartered in Mobile, Alabama.

Some of the key metrics as of 3/31/13:

Net Interest Margin: 3.98%
Efficiency Ratio: 67.84%
Total Risk Based Capital Ratio: 14.52%
Tangible Common Equity to Tangible Assets: 8.2%
Net Charge Offs to Average Loans: -.08% (recoveries exceeded charge-offs)
Coverage Ratio 92.29%
Return on Average Tangible Equity: 10.82%
Return on Average Assets: .93%
Quarterly Dividend = $.23

The quarterly dividend has been stuck at $.23 per share since the 2007 4th quarter: Trustmark Prior to then, the dividend had been raised each year going back to 1987.

My current position was bought last November:  Bought 50 TRMK at $21.54

I previously traded a 50 share lot: Bought 50 TRMK at $19.57 (August 2010 Post)-Sold 50 TRMK at $24.7 (January 2012)

Closing Price on 4/24/13 (Day of Earnings Release): TRMK: $24.59 +0.86 (+3.62%)

Last Friday's Closing Price: TRMK: $24.35 -0.18 (-0.73%)

G. Bought 80 MNRK at $9.97 (see Disclaimer): I recently sold 100 shares of Monarch Financial. {Item A in Regional Bank Basket Section: Sold 100 MNRK at $10.59 (3/25/13 Post)}. I was under the mistaken impression that I owned just 100 shares. Actually, as a result of a 6 for 5 stock split, I owned 120 shares. After reviewing the first quarter earnings report, which looked good, I decided to round my holding to 100 shares by buying back 80 of the 100 shares previously sold. I included a snapshot of that trade which netted a quick $186.06 profit, having purchased 120 shares, adjusted for the subsequent split, at $8.65. (Item E: Regional Bank Basket Strategy Section).

Two analysts provide earnings estimates for Monarch. Their consensus estimate is for an E.P.S. of $1.11 in 2013 and $1.35 in 2014. Using the forward year consensus estimate, the P/E at a total cost of $9.97 would be around 7.39 with a one year growth rate of 21.62%.

Monarch Financial Reports Record First Quarter Financial Performance

2013 First Quarter vs. 2012 First Quarter:

Net Income: $3.458+M/ $2.516+M
Diluted E.P.S. $.33/ $.25
Net Interest Margin: 4.12%/ 4.44%
Efficiency Ratio (Bank Only): 53.1%/51.4%
NPL Ratio: .51%/ 1.52%
NPA Ratio: .34%/ 1.2%
Coverage Ratio: 308.23%/ 114.7%
Annualized Net Charge Offs to Average Loans= .07%/ .97%
Total Risk Based Capital Ratio (BANK)= 13.78%/ 12.58%
Tangible Book Value Per Share= $8.63/ 7.87%
Return on Average Assets: 1.27%/ 1.1%
Return on Average Equity: 15.86%/13.1%

Monarch Financial is the holding company for Monarch Bank which has 11 branch offices in Coastal Virginia, including Norfolk, Virginia Beach, Suffolk and Chesapeake, and offices in Kitty Hawk and Nags Head North Carolina. Monarch Bank Locations | Virginia Beach, Norfolk, Chesapeake, Outer Banks The bank is headquartered in Chesapeake which is in close geographic proximity to Norfolk and Virginia Beach.

The bank recently called for conversion a convertible preferred security that significantly increased the share count. Form 8-Kmonarchbank.PreferredCall.pdf That exchange traded security had a 7.8% coupon.

The dividend yield is viewed as inadequate for stocks in my regional bank basket. The last quarterly dividend was $.05 per share. At that rate, the dividend yield at a total cost of $9.97 would be about 2%. The bank increased its quarterly dividend to $.5 in February 2012 and then declared a 6 for 5 stock split (20%) during the 2012 4th quarter. It subsequently declared after the stock split a 5 cent quarterly dividend which was in effect a 20% increase in the quarterly rate.

The 2011 Annual Report, Form 10-K, shows at page 26 that the bank did not lose money during the recent recession. Annual diluted E.P.S. did sink from $.63 in 2007 to $.21 in 2008 and the recovered to $.66 in 2009; $.75 in 2010 and $.84 in 2011. The NPL ratio went from .1% in 2007 to a peak at 1.61% before receding to current low levels, which is excellent under the circumstances.

Last Friday's Closing Price: MNRK: $10.06 -0.12 (-1.18%)

H. Renasant (RNST): Currently, my largest unrealized gain in this basket strategy is RNST, which I may harvest before the next update. The first quarter earnings report was okay overall. Since the total return of this basket strategy will depend on dividends to a significant degree, I am concerned about RNST's failure to increase the quarterly rate since the 2007 third quarter.  Renasant Bank - Dividends

The consensus E.P.S. for 2013 is currently $1.34 and $1.72 for 2014. RNST Analyst Estimates RNST beat the $.28 first quarter consensus by 2 cents per share.

Renasant Corporation Announces 2013 First Quarter Earnings

1st Quarter 2013 vs. 1st Quarter 2012:
Net Income: $7.571M/ $5.974M
E.P.S. $.3/ .24
Quarterly Dividend Per Share: $.17/ $.17
Net Interest Margin: 3.89%/ 3.85%
Efficiency Ratio: 72.1%/ 71.7%
NPL Ratio=1.08%/ 1.33%
NPA Ratio=1.59%/ 2.28%
Coverage Ratio=  166.19%/ 145.15%
Charge-Offs to Loans=.13%/ .77%
Total Risk Based Capital Ratio: 14.13%/ 14.57%
Tangible Capital Ratio= 7.65%/ 7.47%
Return on Average Assets: .73%/ .57%

Earnings Call Transcript - Seeking Alpha

Bought 50 RNST at $14.14Bought: 50 RNST at $13.70Sold 50 RNST at $14.91Added 50 RNST at $15.85

Last Friday's Closing Price: RNST: $22.25 -0.01 (-0.04%)

(I) Miscellaneous Items: 

Valley National (VLY) had a disappointing first quarter report, missing the consensus estimate. The bank earned $.16 per share, down from $.18 in the year ago quarter. The net interest margin plummeted from 3.7% to 3.18%. The NPL ratio increased slightly Y-O-Y. Valley National Bancorp Reports First Quarter Earnings, Solid Asset Quality And RecordQ1 2013 Results - Earnings Call Transcript - Seeking Alpha  VLY is currently paying a $.1625 per share quarterly dividend, or more than a 100% payout ratio. Shareholder and stock NYSE VLY information - Valley National Bank A significant dividend cut would not be surprising and would be viewed as prudent here at HQ in the event VLY does not substantially improve its earnings. VLY closed last Friday at $8.95. At a total cost of $8.95, the dividend yield at the current quarterly rate would be about 7.26%. I am not reinvesting the dividend.

Bar Harbor Bankshares increased its quarterly dividend by 1.6% to 31 cents per share. That rate places the dividend at 6.9% above the 2012 second quarter rate. Bought 50 BHB at $30

Community Bank System reported net income of $20.2M, up from $18.8M in the 2012 first quarter. For the quarter, return on assets was reported at 1.1%; the return on average tangible equity was 15.32%; the net interest margin was 3.86%; the NPA ratio stood at .47%; the coverage ratio was 157%;  net charge offs to average loans was .14%; and the tangible equity to tangible assets ratio was 7.58%. This bank is notable for raising its dividend during the recent Near Depression period and its aftermath. Community Bank NA :: Investor Relations The current quarterly rate is $.27 per share.

Bought 50 CBU @ 23.18 (still own); Added 50 CBU @ 25.19-Sold 51+ CBU at $26.82

No comments:

Post a Comment