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dexion10 (27.51)

Ugly Statistics at Two California Banks

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9

August 03, 2008 – Comments (5) | RELATED TICKERS: C , MER.DL2 , WB.DL2

MEET PACW -

A REGIONAL BANK IN SAN DIEGO & A REAL PIECE OF GARBAGE: 

Current stock price is around $19.70 

Tangible book value per share $11.92

Net Interest Margin > +5% ***

*** NOTE: 

One thing PACW has going for it is an excellent net interest margin - it's definitely working against the shorts

they saying that time heals all wounds is certainly true when it comes to banking... over time a 5% net interest margin will help banks like PACW rebuild capital. This net interest margin will slowly help PACW rebuild capital - but the $1 million question is will they rebuild capital sooner than bad loans destroy it???

 

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PACW LOAN PORTFOLIO: 

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 Nonowner-occupied residential construction loans $287.5M

 

Commercial RE Construction: $833M

 

Commercial RE Mortgage: $2.3B

 

NPA's: $74M

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MEET West Coast Bancorp (WCBO)

- The worst bank I've seen trading near 1x tangible book.

 

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 Market Cap $176M

(keep this number in mind as you review the dollar value of the risky loans - they dwarf the book value) 

Stock Price: $11.24

Tangible Book Value: $12.18

Net Interest Margin  3.94%

 

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WCBO LOAN PORTFOLIO

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Real estate  construction loans(1)
$392M 18% of loan
portfolio

 

Commercial RE loans $833M  RE Mortgages (residential): $354M

 

Commercial loans $512M 24% of loan portfolio 

 

5 Comments – Post Your Own

#1) On August 04, 2008 at 11:48 AM, pete94 (< 20) wrote:

You need to be real careful about your comments about banks.  Causing a "run" on a bank can be a cause for prosecution by the Feds If you remember, Senator Schumar's comments caused a run on IndeMac which eventually caused the closing of the bank.

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#2) On August 04, 2008 at 12:50 PM, dexion10 (27.51) wrote:

Well too be clear I am not looking to cause a run on a bank. Most depositors are secured via FDIC insurance so they have no reason to pull money from any bank.

 

What I am saying however is that the % of risky loans at these banks vs. bank equity is worse than what I've seen at any of the banks I've looked at... keeping in mind I haven't surveyed the entire banking system... I've included facts above which came right from the banks' own press releases.

If these facts cause a panic then the banks can only blame themselves. Nobody should be pulling money out of a bank because of my non-expert opinion.

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#3) On August 04, 2008 at 7:14 PM, zygnoda (27.13) wrote:

Dexicon didn't say anything worthy of prosecution.  These banks are crap!

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#4) On August 20, 2008 at 12:49 AM, jegr5347 (< 20) wrote:

pete94 is wetting his panty's over a real man's analysis of a bank's balance sheet.

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#5) On December 08, 2009 at 4:20 PM, dexion10 (27.51) wrote:

FYI - WCBO has lost over 90% of its value since this post so I think so I think we nailed the issues here

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