Fox Chase Bancorp
Fox Chase Bancorp (FXCB) of Hatboro, Pa., had $1.0 billion in total assets as of Sept. 30. The shares closed at $12.72 Friday, returning 8% year-to-date.
The company has significant excess capital from its second-step conversion from a mutual thrift holding company structure to full stock ownership in June 2010. The tangible common equity ratio was 19.14% as of Sept. 30, according to SNL Financial.Fox Chase Bancorp bought back 880,000 shares between July 1 and Oct. 25, or 6% of outstanding shares," and on Oct. 26 announced "an additional 5% stock repurchase plan," to begin when the company finished its previous 10% repurchase plan. The shares traded Friday at 32 times the consensus 2012 EPS estimate of 40 cents, and 0.9 times tangible book value. Kelly has a price target of $15 for the shares, saying after Fox Chase reported its third-quarter results that as earnings improve and repurchases continue, he expects "the shares shares to trade at and eventually through tangible book value (TBV) over the next 6-12 months" with "TBV growing to $14.82 by year end 2012."
Lakeland FinancialShares of Lakeland Financial (LKFN) of Warsaw, Ind., closed at $25.09 Friday, returning 20 % year-to-date. Based on a quarterly payout of 15.5 cents, the shares have a dividend yield of 2.47%. The company had $2.8 billion in total assets as of Sept. 30. Lakeland's shares trade for 12 times the consensus 2012 EPS estimate of $2.14 and 1.5 times tangible book value. Sterne Agee analyst Kenneth James has a $28 price target for Lakeland Financial, calling the company "a straightforward organic growth story and a high-quality [commercial and industrial] focused community bank run by a solid management team," that is "somewhat under the radar due to its Indiana footprint and non-promotional management." James calls the company's earnings performance "outstanding with a very rare combination of solid organic loan growth, high profitability (1.20% [return on average assets], 13% [return on tangible equity]), good credit quality, and high capital levels." The market performance and price-to-earnings multiples for the "Big Four" U.S. bank holding companies stand in stark contrast to Sterne Agee's three defensive picks.
- Shares of Bank of America closed at $5.64 Friday, down 58% year-to-date. The shares were trading for 5.7 times the consensus 2012 EPS estimate of 99 cents and for just 0.4 times tangible book value.
- Citigroup closed at $28.17 Friday, down 40% yea-to-date, and trading for 6.4 times the consensus 2012 EPS estimate of $4.37 and 0.6 times tangible book value.
- JPMorgan Chase closed at $32.33 Friday, down 22% year-to-date. The shares traded for 6.6 times the consensus 2012 EPS estimate of $4.88 and just under tangible book value.
- Wells Fargo closed at $26.07 Friday, down 14% year-to-date. The shares traded for 8.1 times the consensus 2012 EPS estimate of $3.20 and 1.5 times tangible book value.
Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.
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