I bought some FNBC $15.4 - New Orleans regional bank. The bank is not current in their SEC reporting, but they did file a report with the FDIC. Aparently, they made loans to nonprofits that were supposed to be tax free, but that wasn't the case. As a result, they had to restate their equity by $100M down to $470M. Excluding they expense, they made $28M during the first 6month this year, according to the FDIC filing. Current market cap is $300M, so if you believe the numbers, the stock is fairly cheap.
Of course there is a decent amount of class action law suits out here now. I don't quite understand he circumstances of the loss and maybe this debacle will turn out worse than expected, but I found that the FDIC filings generally can be trusted. In many cases, the FDIC filings showed problems with banks before the SEC filings did. The equity base of $470M is enough T to support the banking business and they should be able to recover the loss within 2 years from regular earnings, everything else being equal. |
