This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Cheap Small Bank Stocks (Update 2)

Stocks in this article: BAC WIBC OFG FISI BANC IBCA

4. Intervest Bancshares

Intervest Bancshares (IBCA) of New York has seen its stock climb 47% year-to-date, closing Thursday at $3.90. The shares declined 10% during 2011.

According to Thomson Reuters, Michael Sarcone of Sandler O'Neill is the only analyst covering Intervest. The shares trade for nine times Sarcone's 2013 EPS estimate of 44 cents. The analyst's 2012 earnings estimate is 47 cents a share.

Intervest trades for just under half its tangible book value.

The company owes $25 million in TARP money.

Intervest reported fourth-quarter net income available to common shareholders of $2.7 million, or 13 cents a share, increasing from $437,000, or two cents a share, during the fourth quarter of 2010. The earnings improvement reflected a decline in the quarterly provision for loan losses to just $40,000 during the fourth quarter, from $2.7 million a year earlier, and a decline in the provision for real estate losses to $1.4 million, from $2.0 million in the year-earlier period.

Another bright spot for the company -- running counter to most of the banking industry in the prolonged low-rate environment last year -- was an improvement in the net interest margin to 2.22% during the fourth-quarter, from 2.06% a year earlier, although this was "largely offset by a planned decrease in the Bank's assets and liabilities as well as decreased lending opportunities due to current economic conditions."

After Intervest reported its fourth-quarter results, Sarcone on Jan. 17 reiterated his "Buy" rating for the shares, with a 12-month price target of $4.00, "based on valuation, with the shares trading at 36% of our one year forward tangible book value forecast, which is a meaningful discount to the peer group."

Sarcone estimates that "the shares will trade at 50% of our forward year tangible book value forecast," and with the shares nearing the analyst's target, we could see a downgrade soon.

The analyst noted that his "EPS estimates do not currently assume TARP repayment," but he also pointed out that "the dividend on IBCA's TARP preferred shares increases to 9% in December of 2013."

Interested in more on Intervest Bancshares? See TheStreet Ratings' report card for this stock.

3 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs