The Case of a Juicy Bank Stock in the Peachtree State
It's really rare to find a bank doing this well trading this cheaply. It could easily fetch twice book value in a sale, but given the bank's rate of earnings growth and return on equity, I see no reason why SBFC's stellar team shouldn't keep running the bank themselves. At the end of the day, it's reasonable to expect that owners of SBFC stock will wake up sometime in the next 10 years with shares trading at a multiple of today's price.
Disclosure: As of this posting, I own significant shares of SBFC and may subsequently either dispose of them or purchase more.
By acquiring SBFC's 12 branches and $1.4B in deposits, any of these deposit-hungry banks could expect to scale regional operations manyfold:
First Citizens Bancorp, Columbia, SC (FCNCA) has seven nearby branches holding collectively less than $300M in deposits.
SunTrust Banks, Atlanta, GA (STI) has four local branches with $165M in deposits.
Toronto Dominion Bank, Toronto, Canada (TD) has just two branches in the area and $88M in deposits.
(as of 3/31/2012)
Robert W. Pollard, Jr., Chairman
Daniel Blanton, President and CEO
Ronald Thigpen, Executive VP and COO
Four traits about Southeastern Bank Financial that I find especially peachy include: