I'm starting this subject because I think a lot of smaller, regional banks are the best value out there - but get almost no coverage due to their size.
Here's 4 of my favorite undervalued banks - all profitable & trading below book value - all regional bank thrifts - all in or around NJ - all recently demutualized:
· #1 - CSBK - Clfiton Savings Bank - closed at $11.65 - net inc for latest quarter was $.10 diluted; about $.40/eps annualized - but earnings keep growing as ipo proceeds deployed - sitting on several branch offices acquired decades ago & now worth $millions more than reflected on balance sheet - Equity $202.9 mill/14 mill shs = $14.49 book value - but real book value much higher - pays a $.20/annual dividend or almost 2% - just announced a 5% share buyback
· #2 - KRNY - Kearny Bank - closed at $11.63 - book value is $23.16 - just de-mutualized so real earnings and dividends not exactly clear but both should be good when they do come out
· #3 - ABBC - Abbington Community Bank - closed at $13.47 - on track to do about $.79/eps for year but should be higher as ipo proceeds deployed - $17.34 in book value - actually - this bank is in Bucks County, PA - which borders NJ
· #4 - OSHC - Ocean Shore Bank - closed at $10.91 - also too new to determine earnings - but book value is $15.97 |
