A Case of an SBFC Lookalike?
The Case of a Juicy Bank Stock in the Peachtree State.)
Fast forward to today, I feel the same way about SBBI. If I'm right in perceiving the similarities, its book value will be above $80 in three years, SBBI will trade over $100 per share — (triple today's bargain price) — and investors will be sitting pretty.
Disclosure: As of this posting, I own shares of SBBI and may subsequently either dispose of them or purchase more.
Although the State Bank of Cross Plains is unlikely to sell (and I'm more than happy to hang onto its stock), I suspect these suitors would agree it's a beauty.
Associated Banc-Corp, Green Bay, WI (ASB)
Bank of Montreal, Toronto, Canada (BMO)
Old National Bancorp, Evansville, IN (ONB)
†as of 12/31/2015
Charles L. Saeman, Chairman and CEO
James L. Tubbs, Bank CEO and President
Mark DeBiasio, Executive VP, CFO, and Treasurer
The similarities between SBFC in 2012 and SBBI today are remarkable:
The differences make SBBI today an even more appealing stock pick than SBFC was then:
So, I can imagine making money on this stock for another 20 years!
Assuming even modest growth from here, say 7% a year, we could see SBBI's book value grow from today's $64 to $240 before Tubbs reaches retirement age.*
Presuming SBBI trades at twice book by then, again, not unreasonable for a high performer, I could be holding a stock worth $500 per share.
*His grandfather worked at the bank for 66 years. His 86-year-young dad still works at nearby Bank of Sun Prairie, and owns over 10% of SBBI. If Tubbs is a Tubbs, he'll be running the State Bank of Cross Plains for at least another 20 years.
Too far out for your investment horizon?
If SBBI keeps looking like SBFC, book value will reach $100 in just three to four years and the stock should trade at 150% of book — quadruple today's price.