Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (25091)	10/22/2006 11:20:04 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78958

re Community banks - deposits are the cheapest source of funding for loans, so it is my understanding that the deposits are very much correlated with franchise value. Of course there are different sorts of deposits - the non interest bearing one are much more valuable than CD's for example. An acquirer definitely would want to build on the existing deposit base, especially the low interest deposits (Checking accounts etc.) which also tend to be more sticky. Regarding NYB - i do not think this stock is cheap. Deposits are 3x market cap which is OK but not great. Earnings barely cover dividend payments and the capital ratio is quite low. For those reasons NYB seems like a risky stock to me.