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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.

[Read: <a target="blank" data-add-tracking="true" href="http://www.thestreet.com/story/11988375/1/state-street-financial-loser.html"><em> State Street: Financial Loser</em></a>]

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.

[Read: <a target="blank" data-add-tracking="true" href="http://www.thestreet.com/story/11987602/1/downgrades-point-to-weak-construction-spending-ahead.html"><em> Downgrades Point to Weak Construction Spending Ahead</em></a>]

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.
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