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Non-Tech : NetBank(NTBK)-formerly Atlanta Internet Bank

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To: jjs_ynot who wrote (527)	5/27/1998 12:40:00 AM
From: Les White	Read Replies (2) of 2414

>>book value<< Dave, I think you have demand deposits confused with equity as it relates to price to book value. Retained earnings will add to equity and therefor increase book value. Deposits are not owned by the bank and are not considered equity. I agree with your observation that the author seems to find something wrong with buying mortgages. It seems that has been a good asset acquisition strategy until they were ready to start originating their own loans. There are nationwide networks of loan appraisers and closers available to AIB. If they can attract the mortgage loan market the infrastructure is in place to service it. He also left out the fact that the average traditional start up bank takes 3 years to turn a profit and AIB has done it in a less than one year. It's no wonder that AIB has been awarded a high price to book value. Les

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