Excluding the six bank and thrift stocks featured previously, the table above lists the ten bank and thrift holding companies with the highest trading volume meeting the revised criteria, sorted by dividend yield.
Although the Texas ratios for some of the group approached our 20% limit, first-quarter loan losses were light for the entire group. Even Merchants Bancshares (MBVT) of South Burlington, Vt., which had a first-quarter net charge-off ratio of 0.83%, came in far behind the national aggregate charge-off ratio of 3.43%, as reported by the Federal Deposit Insurance Corporation.
Trustco Bank Corp (TRST - Get Report) of Glenville, N.Y. has the highest trading volume on the new list. Shares closed at $6.05 Thursday and were yielding 4.13% on a quarterly dividend payout of 6.3 cents a share.Trustco's shares were down 2% year-to-date through Thursday's close, assuming reinvestment of the dividend. Earnings have dragged a bit over the past two years as nonperforming assets increased. Still, the company has remained profitable through the credit crisis and loan losses have been light. Shares are historically cheap, trading for 1.9 times tangible book value at Thursday's close. To put that in perspective, Trustco's shares traded above three times book value at the end of 2006, 2007 and 2008. Looking at price relative to earnings potential, shares were trading for 13.1 times the consensus 2010 earnings projection of 47 cents a share among analysts polled by Thomson Reuters. The ratio of price to projected earnings for 2011 was 11.6. At the end of 2006, 2007 and 2007, the shares went for more than 20 times earnings. So Trustco appears cheaply priced, although some analysts, including Mike Shafir of Sterne Agee take a neutral stance, saying the shares are fairly valued against the company's peers. The highest-yielding stock on the list as of Thursday's market close was CNB Financial Corp (CCNE - Get Report) of South Burlington, Vt. The company's price-to-tangible-book ratio of 1.6 on the table above is based on March 31 financials, and doesn't reflect a $34.5 million common stock offering completed June 14. Shares closed at $11.25 Thursday, down 28% year-to-date, which isn't surprising when considering dilution from common offering, against the company's market value of $137 million. While 2010's been very rough for long-term holders of the company's shares, we are looking at an excellent entry point right now, considering price-to-earnings multiples. Shares were trading at 11.4 times the consensus 2010 earnings estimate Thursday and looked exceedingly cheap for long-term investors, selling for 9.7 times the 2011 estimate and 8.6 times the 2012 estimate.