CCF Holding Co, Jonesboro, GA (CCFH)

A Case of Southern Revival

The Heritage Bank resurrection story warms my heart. Of the 12 banks that were headquartered in Georgia's Clayton and Henry Counties in 2008, Heritage is the only one that survived the Great Recession.

The Heritage Bank franchise lost a huge percentage of its equity at the time, but clearly it did not lose faith! Since then, asset quality, growth, and scarcity value have all risen to such a glorious degree that I can see CCFH stock trading at 150% of book value within the next two years. And if the bank's board decides to sell, the stock could deliver twice book.

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Disclosure: As of this posting, I own shares of CCFH and may subsequently either dispose of them or purchase more.

Prospective Buyers	Wrapping Heritage Bank into its fold would fill a real need for any one of these organizations that suffer from lack of marketshare in the area: Ameris Bancorp, Moultrie, GA (ABCB) State Bank Financial, Atlanta, GA (STBZ) United Community Banks, Inc, Blairsville, GA (UCBI)
Financial Snapshot †as of 06/30/2016	Total assets: $415M† Tangible book value per share: $1.08†* NPAs to assets: 2%† Price to book: 88%* Market cap: $37M* Dividend yield: 0% Trailing 12-month return on assets: 5.6%†** Trailing 12-month return on equity: 64.2%† *Tangible book value per share, price to book, and market cap adjusted for exercise of warrants and conversion of preferred shares. **ROE and ROA numbers are misleading due to the bank's DTA recapture.
Luminaries	David Turner, Chairman Leonard Moreland, President and CEO Katherine Zovlonsky, Senior VP and COO
Gold Stars	The Heritage Bank resurrection story in a nutshell: THEN* NOW NPAs to Loans Over 24% 3% Texas Ratio 267% 20% and falling Equity $7.7M $38M Net Loans $242M $275M Deposits $327M $362M * YE 2012, 2013
Sources	Heritage Bank website 2016 Proxy Statement 2015 Annual Report 2013 Annual Report SNL Financial Confidential interviews with shareholders and analysts