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

Berkshire Outcast Loads Up on Bank Stock

NEW YORK ( TheStreet) -- David Sokol has backed up the truck to load up on shares of Middleburg Financial (MBRG - Get Report), continuing to add to a position the investor was holding when he resigned from Warren Buffett's Berkshire Hathaway (BRK-B) in March.

According to Securities and Exchange Commission filings, Sokol purchased 66,811 Middleburg shares for his trust account this month, through Tuesday, for a total of $978,638, or an average price of $14.65 a share. Sokol also picked up 11,817 shares for his IRA account, for $169,743, or an average price of $14.36.
David Sokol

Sokol controlled 1,534,565 shares of Middleburg Financial, or roughly 22% of the company's shares outstanding.

Middleburg Financial's shares closed at $14.76 Tuesday, up 2% so far in August and up 4.5% year-to-date, bucking the trend for the largest U.S. banks. This performance compares quite favorable to the KBW Bank Index (I:BKX), which was down 21% month-to-date and down a whopping 30% year-to-date.

Some of the best-known U.S. banking names have fared even worse, with Bank of America (BAC - Get Report) seeing its shares drop 35% during August through Tuesday's closing price of $6.30. Shares of the nation's largest bank were down 53% year-to-date.

Shares of Citigroup (C - Get Report) were down 29% month-to-date and down 42% year-to-date when they closed at $27.32 Tuesday.

Looks like other investors smell a winner in Middleburg Financial (or maybe in Sokol), despite the bank's meager earnings.

Middleburg Financial had $1.1 billion in total assets as of June 30, and reported second-quarter net income of $1.2 million, or 17 cents a share, compared to $724 thousand, or 10 cents a share, a year earlier.

The company's provision for loan losses declined to $1.1 million during the second quarter, from $1.3 million a year earlier, however, this improvement was more than offset by an increase in expenses on foreclosed properties to $606 thousand in the second quarter, from $295 thousand a year earlier.

The bank's net interest margin -- the difference between its average yield on loans and investments and its average cost of funds -- was 3.78% during the second quarter, expanding from 3.67% a year earlier. Its second-quarter return on average assets was 0.39%, which is way below the combined U.S. bank and thrift industry's 0.85%, reported Tuesday by the Federal Deposit Insurance Corp. .
1 of 2

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
C $54.08 0.00%
BAC $17.44 0.00%
MBRG $18.29 0.00%
AAPL $118.03 0.00%
FB $105.41 0.00%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs