This Day On The Street
Continue to site
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

Four Community Bank Survivors Under $10

Boston Private Bank & Trust (BPFH - Get Report) ($11.10 vs. $9.72 in Dec. 2008) set a multi-year high at $11.49 on July 18 and traded as low as $2.07 in February 2009. Today the bank's exposure to C&D loans is down to just 25.5%, with a healthy 66.7% CRE loan to loan-commitment pipeline ratio. To accomplish this, the bank reduced assets to $6.01 billion from $6.89 billion.

The stock slumped on Tuesday after announcing that an affiliate of The Carlyle Group agreed to sell 3,831,022 shares of stock in an at-the-market offering. The bank reported quarterly results on July 17 and missed EPS estimates by 1 cent, earning 18 cents per share. My monthly value level is $10.17 with a semiannual risky level at $11.63.

Bank of the Cascades (CACB - Get Report) ($6.53 vs. $8.85 in Dec. 2008) set a multi-year high at $7.18 on Feb. 5, 2013. In November 2011, this bank traded as low as $3.50. Today the bank's exposure to C&D loans is down to just 28.5%, with a healthy 58.1% CRE loan to loan-commitment pipeline ratio. To accomplish this, the bank reduced assets to $1.33 billion from $2.44 billion.

The bank reports its quarterly results on August 13 and is expected to earn 8 cents a share. My annual value level is $5.59 with a weekly pivot at $6.35 and a monthly risky level at $7.29.

Huntington National Bank (HBAN - Get Report) ($8.46 vs. $9.33 in Dec. 2008) set a multi-year high at $8.66 on July 8 and traded as low as $1.00 in February 2009. Today the bank's exposure to C&D loans is down to just 22.5% with a healthy 58.4% CRE loan to loan-commitment ratio. This bank accomplished this and increased assets to $55.86 billion from $54.84 billion.

The bank reported quarterly results on July 18 and beat EPS estimates by 1 cent, earning 17 cents a share. My monthly value level is $7.96, with a semiannual pivot at $8.41. This reflects that a bigger bank has a better chance of surviving than the smaller banks.

Macatawa Bank (MCBC - Get Report) ($5.48 vs. $9.13 in December 2008) set a multi-year high at $6.10 on March 15 and traded as low as $1.10 in June 2010. Today the bank's exposure to C&D loans is down to 56.0% with a healthy 63.8% CRE loan to loan-commitment pipeline ratio. To accomplish this, the bank reduced assets to $1.50 billion from $2.11 billion.

The bank will report quarterly results Thursday, July 25, and is expected to earn 8 cents a share. My quarterly value level is $4.64 with a weekly pivot at $5.18 and a monthly risky level at $6.24.

What happened to the other eight community banks?

Horizon Financial was closed by the FDIC in the bank-failure process on January 8, 2010.

First Community Bank was closed by the FDIC in the bank-failure process on January 28, 2011.

Cadence Band is no longer publicly traded.

Colonial Bank was closed by the FDIC in the bank-failure process on August 14, 2009.

Bank of Florida was closed by the FDIC in the bank-failure process on May 28, 2010.

Premier West Bank was closed by the FDIC in the bank-failure process on October 15, 2010.

Amcore Bank was closed by the FDIC in the bank-failure process on April 23, 2010.

Midwest Bank & Trust was closed by the FDIC in the bank failure process on May 14, 2010.



At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.
2 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
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!
SYM TRADE IT LAST %CHG
BPFH $12.94 -0.92%
CACB $4.98 -1.19%
HBAN $10.71 -0.74%
MCBC $5.32 -0.37%
AAPL $132.65 1.82%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs