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 Most Profitable Banks Trading Below Book Value

7. HomeTrust Bancshares

HomeTrust Bancshares (HTBI) of Ashville N.C., saw its stock return 13.51% in January, closing Thursday at $14.45. The shares were up 28% since the company's conversion from mutual to stock ownership on July 11.

The shares trade for 0.8 times tangible book value. KBW analyst Brady Gailey is the only analyst covering the company, according to Thomson Reuters. The shares trade for 25.8 times Gailey's 2014 EPS estimate of 56 cents. Gailey's 2013 EPS estimate is also 56 cents.

HomeTrust's ROA for the first half of its fiscal 2013 ended Dec. 31 was 0.42%. The company had $1.6 billion in total assets as of Dec. 31.

For the fiscal second quarter ended Dec. 31, the company earned $2.3 million, or 11 cents a share. Earnings increased from $843,000 a year earlier, mainly because of a decline in the provision for loan losses. Net interest income for the fiscal second quarter was $13.6 million, declining from $14.2 million a year earlier, because of a 7% decline in in average loans.

HomeTrust reported that nonperforming assets made up 5.36% of total assets as of Dec. 31, increasing from 4.67% the previous quarter and 5.67% a year earlier. While the nonperforming assets ratio is rather high, the company's loan loss reserves covered 2.89% as of Dec. 31.

The bank also has plenty of excess capital, with a tangible common equity ratio of 23.56%.

Gailey rates HomeTrust "outperform," estimating the company will earn 56 cents a share this year and also in 2014.

"We continue to recommend the shares as we believe stock will trend towards [tangible book value per share] (~$17.50, our price target) over time," the analyst said in a report on Jan. 29, "as the company will be an aggressive repurchaser of its stock once it hits its one-year mark post conversion (July 2013)."

Gailey also said that "a sale at the three-year mark is a possibility and the company would be sought after by many given its attractive footprint in North Carolina."

Interested in more on HomeTrust Bancshares? See TheStreet Ratings' report card for this stock.
5 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 $12.95 0.00%
BPOP $25.08 0.00%
C $39.86 0.00%
KEY $10.80 0.00%
SNV $28.53 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs