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Small Bank Newsletter
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January 2002
INTERVEST BANCSHARES CORP. (IBCA 7) is a nationally chartered
Bank, headquartered in NYC, with 5 full - service offices in
Clearwater and Pinellas County, Florida. This bank was featured
before, in our past newsletter several years ago, but was sold
in the Internet craze of 1998. Now is the time to get back in.
Total assets at $475 million, deposits at $341 million and loans
at $350 million as of 9/30/2001. Loan growth is very strong at
31% in the latest period. These guys know how to run a bank with
their deposit base at over $136 million on the 3rd floor. WOW!
That's right I'll say it again $136 million in deposits on the
third floor of a building. That's how to run a bank. Latest earnings
for the quarter were $0.24 per share and $0.61 for the first
months of 2001, up from $0.45 for the first 9 months of 2000.
They are located in all the right markets and a Bank of this
size can continue to steal market share from the big boys as
many other small banks merge. Their growth opportunities going
forward are great and asset quality is perfect with no bad loans
and reserves at 0.89%. Their efficiency ratio is down to a low
41.38%, very nice. Management is smart and owns most of the stock,
so do not look for a sale of the bank for many years to come.
We can look forward to strong stock appreciation over the next
several years, as strong earnings will drive the price much higher
we feel. They have a book value of $10 a share and should earn
$1.15+ a share in 2002. They have just over 50 employees, very
low for a bank of this size. They have 3.9 million shares outstanding.
Look for management to make this bank a mini powerhouse over
the next several years. Accumulate under $7.50. Worth at least
$22 a share 4- 5 years out. Long-term investors only.
Wow!
what a way to start the New Year. Another deal from our 2/1/99
newsletter that was just sent out to all, with Civic Bancorp (CIVC),
being taken by City National for around $21.50 in cash and stock.
Hope you were in. That's 7 of 11, or 64% of the stocks in that
newsletter alone, now gone.
FOLLOW
UPS:
- 1.
CIVIC BANCORP (CIVC 20) being taken, as mentioned above,
for $21.50 in cash and stock by City National.
2. ADVANCED FINANCIAL (AFBC 13.45) sell for a small
profit, asset quality worst than expected.
3. COMMERCIAL BANCSHARES (CMOH 20.1-25) paid a 10% stock
divide
nd. Buy more under $21 only.
4. WHITNEY HOLDINGS (WTNY 44) raised their cash dividend
by 5% to $0.40 a share. Hold. Now our largest holding.
5. TOWN & COUNTRY (TCBS 18-23) earnings up to $0.43
in the latest quarter. Very nice. Hold.
6. FIRST MID-ILLINOIS (FMBH 23.75-26) paid a 3 for 2
stock dividend. Hold. Earnings up 13% in the latest quarter.
7. RIVER CITY BANK (RCBC 57-65) reported flat earnings
in the latest quarter of $1.44. Hold. Always buy more under
$50.
8. PFF BANCORP (PFFB_26) new stock symbol PFB on the
NY stock exchange on or about 12/28/2001.
9. NBT BANCORP (NBTB 14.20) our 3rd largest holding.
Hold.
10. GASTON FEDERAL BANCORP (GBNK 15) our 5th largest holding. Buy more
now under $15.5.
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As always, you may call me with any questions on any stock. This
is a free service to our subscribers.
To contact Douglas Hughes via email - dhughes33@charter.net
Personal Account Management: Bank Stock Portfolios.1.25%-1.75% FEE.
$1,000,000 Minimum. Douglas Hughes Hughes Investment Management. 1-888-814-7575.
The Small Bank Newsletter is published 12 times a year. (To
Subscribe: 1-888-814-7575).
- Douglas Hughes -- Small Bank Newsletter, Hughes Investment Management
, can and does take positions, in stocks it recommends.All material
Copyright© 1995-2003 by Douglas Hughes. Reproduction of
this publication in whole or in part is strictly forbidden.
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