This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Bank Stock Picks for Bottom-Fishing Investors

6. MainSource Financial Group

Shares of MainSource Financial Group (MSFG) of Greensburg, Ind., closed at $7.46 Wednesday, for a seven-day decline of 19% and a year-to-date decline of 28%.

The shares traded for 0.8 times tangible book value as of Wednesday's market close, according to SNL Financial.

The company owes $57 million in TARP money.

Second-quarter net income available to common shareholders was $6.9 million, or 34 cents a share, increasing from $3.8 million, or 19 cents a share in the first quarter and $1.4 million, or seven cents a share, in the second quarter of 2010. The earnings improvement reflected a decline in the provision for loan losses to $4 million in the second quarter, from $5.6 million the previous quarter and $12.8 million a year earlier.

The company released $2 million in reserves during the second quarter. Reserves covered 2.63% of total loans as of June 30, and the second-quarter ratio net charge-off ratio was 1.20%.

The second-quarter net interest margin was a strong 4.30%, increasing from 4.09%, although CEO Archie Brown said that Virginia Commerce expected that its revenue would "be under increased pressure as loan demand remains relatively weak and total loans outstanding continue to decline." He added that the bank was "working diligently to identify prudent avenues for additional loan growth."

The shares trade for 8.3 times the consensus 2012 EPS estimate of $1.04, among analysts polled by FactSet.

Two of the five analysts covering MainSource Financial Group rate the shares a buy, while the remaining analysts all have neutral ratings.

Like MainSource, Virginia Commerce appears to be a relatively low-risk play, especially with such low multiples, however, the company is not confident about its prospects for near-term loan or revenue growth.
6 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.56 0.00%
CATY $30.52 0.00%
C $46.28 0.00%
BPOP $29.72 0.00%
FITB $18.31 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs