A Case of Being Run Off the Road
It's been five years since I reviewed First Commerce Bank, and I'm sorry to say it wasn't the good buy I thought it was. The Board's high ownership stake failed to incentivize doing the right thing the way it normally does. (See April 2019 Timyan Bank Alert post "A Case of Growing Too Fast.")
The photo I selected for the CMRB review series strikes me very differently today. This kid didn't fall off his bike. He was shoved.
Experts say the best way to deal with characters as self-serving and shameless as the folks running First Commerce is to Run The Other Way. Do Not Engage. Do Not Look Back. Someday I will learn.
CMRB is a Sell.
Disclosure: As of this posting, I no longer own shares of CMRB and definitely have no plans to purchase any ever again.
Prospective Buyers
| This list has getting shorter and more paltry, because First Commerce squandered its best opportunities for a sale. The three remaining prospects listed here are overcapitalized underperformers that likely can't pay a premium:
Blue Foundry Bancorp, Rutherford, NJ (BLFY) Columbia Financial, Fair Lawn, NJ (CLBK)
SR Bancorp, Bound Brook, NJ (SRBK)
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Financial Snapshot
†as of 03/31/2024 |
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Scoundrels
| Thomas P. Bovino, Chairman
Abraham M. Penzer, Vice Chairman Donald Mindiak, President and CEO
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The Skinny
| Why I'm calling CMRB a Sell
Since my 2019 review of First Commerce
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Sources
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You should look into Kearny Bank. Some of the same performance, nepotism, and Director compensation issues. The stock is down more than 50% from its high.
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