And the Winner is…

Also coming out later this week, more about the bank I’ve been buying in the Tarpon Folio, as I mentioned in my last letter to investors.

In that letter I told everyone who wasn’t an investor in Tarpon but was nonetheless curious which bank it was that I’d reveal the name soon. I’ve had my head down on the portfolio lately, and I have yet to put out my report on that bank, but it’s Citizens Republic Bancorp, or CRBC. I’ll be done chroming up that report soon and will release it later this week.

To see my report on Citizens when it comes out, please sign up for my email list by clicking here.

And a special thanks to Plan Maestro for putting CRBC on my radar screen to begin with.

Back with much more after the holiday.

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Cale Smith

About Cale Smith

Portfolio Manager at Islamorada Investment Management.
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6 Responses to And the Winner is…

  1. Abdul Saleh says:

    CRBC is a good choice, Cale. They look like survivors in an otherwise devastated landscape in Michigan. You might also want to look at First Place Financial (FPFC). They are an Ohio based bank with about a third of their assets in Michigan. Their vitals are much the same as CRBC with two key advantages: a smaller overhang of bad loans and a higher pre-provision profit margin. They are in the midst of a capital raise but it is clear that the raise is more about offence than defense.

  2. PlanMaestro says:

    Waiting for the conditions

    First Place Financial Corp. (Nasdaq:FPFC – News) today announced its intention to commence a public offering of approximately $80 million of common stock and as an initial step in this process it has filed a registration statement with the Securities and Exchange Commission.

  3. PlanMaestro says:

    Cale, have you been following the TIBB situation? Do you understand what happened to the first PE offer?

    • Cale Cale says:

      Hi Plan,

      Been following things between bouts of tunnel vision. Rights offering looks reasonably appealing to, say, lower your cost basis and do some tax-selling later, and/or as speculation on a roll-up. Hard to square the circle from a fundamental perspective, and no oversubscription privileges – but that potential roll-up certainly has some appeal. 10 for 1 on those rights, which explains the price support, I suppose. Believe the $0.15 figure reflects book after all write-downs (puts BVPS at $0.20), then a 75% discount as per peers. Company is hoping to raise about $20M when it’s all said and done. Record date is Monday.

      That said, unclear what happened to Patriot, the first group. I suspect they’re still interested and in the wings, but have not confirmed. Nothing to suggest otherwise in TIBB’s filings, anyway, though they did can those three guys they engaged a month ago to find money for them. Patriot’s offer was for $20M – $25M in a private raise, contingent upon doing a larger raise of $150 M, and believe max price was to be paid was $0.70 per share – but would probably be a follow-on deal down the road a bit given the terms outlined here. Maybe more fuel for roll-up.

      Saw Ross jumped on SNBC, too. If it weren’t already midnight on Friday, I’d be drilling down more there right now, I think…