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Strategies & Market Trends : Dividend investing for retirement
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To: Ditchdigger who wrote (10626)12/23/2011 3:49:18 PM
From: Sergio H  Read Replies (1) of 34328
 
PBCT

Hi Ditch. I like PBCT a lot. I know you do too. You get a steady div. with an opportunity for capital growth if the economy ever picks up. (If the economy does not pick up, then we're all screwed anyway, but don't tell anybody).

The div. payout ratio is blurred by their recent acquisitions as they are using free cash to partially fund their purchases. Look at the efficiency of the last acquisition:

<It's worth noting we issued 18.5 million shares as part of the Danvers transaction at a price of $13.44. And since the Danvers transaction was announced in January, we've repurchased 20.4 million shares at a weighted average price of $12.10, which offset the dilution from issuing stock in the transaction and effectively converted it to a cash transaction. >

Also affecting cash flow is their repurchase program This is from the 3q report when they announced a new share buyback program.

<we repurchased $15.8 million shares of our common stock at a weighted average price of $11.81. While we were disappointed to see our stock trade at the levels it did in the third quarter, it presented us a significant opportunity to repurchase shares>

PBCT's quality is reflected by their low non-performing loan ratio.

Last year they expanded into Westchester County and they just opened up an office in Manhattan where they can expand their market while providing service to their commuting customers from L.I. and Westchester.

I think their supermarket concept is a great idea. And they are pending approval to change into a National Charter Bank to further spread their lending activity while they are likely to continue making acquisitions of high quality smaller banks.

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