tag:blogger.com,1999:blog-2986124651030959736.post3932614868382333328..comments2024-03-29T08:03:35.151-05:00Comments on Stocks, Bonds & Politics: More on the Call Warrant in TCs/Baltic Dry Index/Intel/Bought 50 CNBKA at 20.53/Added 50 FNB at 7.8/Bought 2500 CADTENNINDEPENDENThttp://www.blogger.com/profile/17444227958539559639noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2986124651030959736.post-20314012423322763312010-07-20T22:27:07.153-05:002010-07-20T22:27:07.153-05:00Events Calender: I reviewed the 2005 letter from S...Events Calender: I reviewed the 2005 letter from Sy Jacobs that you reference, and found a few of the comments interesting. <br /><br /> One of his comments involves an attack on the bank's caution in making commercial real estate loans, which have decimated so many banks since 2007. According to Jacobs, one of the major failings of Century's management was "The choice to deemphasize commercial real estate lending in recent years because management erroneously believed the real estate market to be overheated". That decision probably kept the bank from losing much value in 2008-2009. <br /><br /> I would think the shareholders of Zions, Synovus, MI, Regions, and countless other banks who lost tens of billions on commercial real estate loans due to what was clearly- beyond question- an overheated market may have preferred the management at Century to their own swashbucklers. Fortunately, the bank apparently did not follow the recommendations of Mr. Jacobs. I had a different take away than you of this letter. I viewed it as hyperbole and self-serving garbage. <br /><br />I would be more concerned about the swanky headquarters. I may take a look on google. <br /><br />I was aware of the two classes of stock. The family that you mention controls the Class B which receives a 6 cent per share quarterly dividend. I own the Class A which is paid a 12 cent quarterly dividend. <br /><br />I did not seek anything in the last 10-Q that suggests that the insiders receive out of the ordinary compensation as officers and directors of this size of a bank. Perhaps, you can be more specific about how the bank is operated for the benefit of the family and friends. <br /><br />I did well in a short period with Wainwright, another small bank from Boston, doubling my money in a month or so.TENNINDEPENDENThttps://www.blogger.com/profile/17444227958539559639noreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-87818601931362413012010-07-20T22:01:58.664-05:002010-07-20T22:01:58.664-05:00I live down the street from a Century Bank branch ...I live down the street from a Century Bank branch and pass their swanky headquarters all the time. Century Bank is a special situation, and not in a good way. It is controlled by a local family through their ownership of a special class of stock, and the bank is run for the benefit of the family and their cronies, not the benefit of shareholders or customers. See for example <a href="http://www.secinfo.com/d14D5a.z3nJ3.htm" rel="nofollow">this filing</a>. Obviously, you should do your own research, but I would advise you to sell. There are plenty of other small Boston-area banks, and nearly any of them is a better bet.Events Calendarhttps://www.blogger.com/profile/01327017599250078213noreply@blogger.com