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

To: Lazarus who wrote (57320)	5/23/2016 6:55:35 PM
From: Graham Osborn	Read Replies (2) \| Respond to of 78735

TBNC's management sound like the kind of guys I'd want running my bank. Great perspective on consumer lending. Total credit card balances are nearing 1T, the first time since the mid 2000s. LC and ONDK are on the verge of collapse. And the megabanks are clearly drinking the Kool-Aid as well. Maybe TBNC is smart enough to ride out a downturn and even pick up some of the pieces. I just might have a look at this bank. That's saying something as I haven't seriously considered longing a stock in over 6 months.

To: Lazarus who wrote (57320)	5/23/2016 8:59:01 PM
From: Investor2	Respond to of 78735

Thanks!

To: Lazarus who wrote (57320)	8/13/2016 7:56:57 PM
From: Graham Osborn	Read Replies (3) \| Respond to of 78735

Hi Lazarus, I've been studying TBNC the past few days. Perhaps you can fill in some color on this bank's history - was the dental loan portfolio born out of the lessons of the real estate crash and, if so, how do you feel about the real estate portfolio exposure if the market was to cool off in the Dallas area? That's a big exposure and looks to be growing particularly in construction/ residential. Having just read Fooling Some of the People All of the Time, my comfort level with the unguaranteed part of the SBA loans is not great, and that exposure has grown. I imagine their review committee is being reasonably conservative though. My first impression is the mix looks fairly robust and dentists should be creditworthy borrowers, but I have an underlying discomfort with the business model of banks which needs to be overcome. Loan portfolio growth, growth in tangible equity, returns on capital, assets/ equity, capital reserves look great. Seems like a prime acquisition target with the trust business providing a nice bolt-on opportunity. Management's goals seem shareholder-aligned beyond question.