Community Bank of Bergen County, Maywood, NJ (CMTB)

A Case of Another Late Bloomer

There are times when average looks pretty darn good. As with Ameriserv Financial (ASRV), which I wrote about in January, the Community Bank of Bergen County may be just average, but it is priced way too cheaply and positioned too beautifully to be overlooked as a stock pick.

---

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

Prospective Buyers	The three healthy branches that make up the Community Bank of Bergen County would make an attractive addition to any buyer's bouquet, particularly for institutions like these, which have overlapping branches: Boiling Springs MHC, Rutherford, NJ (private) Clifton Bancorp, Clifton, NJ (CSBK) Oritani Financial, Township of Washington, NJ (ORIT)
Financial Snapshot (as of 06/30/2014)	Total assets: $289M Tangible book value per share: $14.58 NPAs to assets: 2.51% Price to book: 50.9% Market cap: $12.9M Dividend yield: 0% Trailing 12-month return on assets: 0.12% Trailing 12-month return on equity: 1.53% TARP: $0
The Crew	Marianne Byrne, Chairman (Chairwoman) Peter Michelotti, President and CEO Raymond Zachmann, Executive VP and CFO
The Skinny	This is a pretty good bank that's getting better. The Community Bank of Bergen County successfully reduced NPAs from 7% in 2011 to today's 2.5%, while holding equity stable at $25M. CMTB is the rose of Rochelle Park and daisy of Maywood. In its single Rochelle Park branch, CMTB holds $96M in deposits —the largest share of any bank in town. Its branch in Maywood, NJ is the second largest in town, boasting $126M in deposits. An acquiring bank could make money here. Assuming the requisite efficiencies for a merger, an acquirer could pick up this beauty for 125% of book and dress up its own book value and earnings.   Any investor can make money here! You won't find many banks like this left in the field today, trading at less than book value despite their freshly tidied loan portfolios. Trading now at 54% of book, CMTB offers plenty of upside for the enterprising investor.
Sources	Community Bank of Bergen County website 2013 Annual Report March 2014 Proxy Statement SNL Financial Confidential interviews with shareholders

Banc of California, Irvine, CA (BANC)

A Case of Sticking it to the "Sugar" Man

What more can I say about Steven Sugarman's slippery hands in the Banc of California cookie jar than PL Capital already has in recent 13D filings? Isn't it high time these Scoundrels stop sweetening their salaries and start "Cleaning Up" like Sugarman's apparent doppelgänger and hero Barry Minkow's purporting to do?

---

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

Prospective Buyers	City National Corp, Los Angeles, CA (CYN) PacWest Bancorp, Los Angeles, CA (PACW) Zions Bancorp, Salt Lake City, UT (ZION)
Financial Snapshot (as of 03/31/2014)	Total assets: $4B Tangible book value per share: $9.94 NPAs to assets: 0.81% Price to book: 89.3% Market cap: $291.8M Dividend yield: 4.4% Trailing 12-month return on assets: 0.0% Trailing 12-month return on equity: -0.03% TARP: $0M* *Redeemed $19.3M 12/15/2010
Scoundrels	Steven A Sugarman, Chairman, President and CEO Chad T Brownstein, Vice Chairman Ronald J Nicolas, Executive VP and CFO
Red Flags	These Scoundrels have crushed tangible book value at BANC like a stale cookie from $18.47 in 2009 to today's crummy $9.94 BANC officers are compensating themselves like kids on a sugar high at a rate running almost seven times the national average and performance of banks like Royal Financial, for the "service" of producing over $2M in losses BANC ringleader Steven Sugarman bears too many uncanny resemblances to Barry Minkow for my comfort, including behavior sharply inconsistent with the books they author
Sources	Banc of California website PL Capital's 13D Amendment Exhibit to PL Capital's 13D Exhibit to PL Capital's 13D Amendment Pearl Meyer & Partners Report Article by Ron Kaye L.A. SNL Financial Confidential interviews with shareholders

California Bank of Commerce, Lafayette, CA (CABC)

The Case of an All Star Team in a Hot Market

How's this for a steamy bank stock pick? California Bank of Commerce may have opened its doors at the most inopportune of times in the Fall of 2007 at the onset of the Great Recession, but under the skilled leadership of founding CEO John E Rossell III it didn't even get singed. CABC's book value has grown 48% since 2010. Another four-year surge like this and it will reach $15.45. If CABC sells for twice book like the inferior Virginia Heritage (VGBK) just did, the stock could fetch a toasty $31. Tssss!

---

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

Prospective Buyers	Personally, I'd prefer to see this all star team keep stoking it up on their own, but were I one of these area banks, I'd sure be coveting CABC's deposits. Bank of Marin, Novato, CA (BMRC) Opus Bank, Irvine, CA (OPB) Westamerica, San Rafael, CA (WABC)
Financial Snapshot (as of 03/31/2014)	Total assets: $373M Tangible book value per share: $10.44 NPAs to assets: 1.22% Price to book: 104% Market cap: $46M Dividend yield: 0% Trailing 12-month return on assets: .77% Trailing 12-month return on equity: 9.6% TARP: $0M* *Redeemed $4M 9/15/2011
Luminaries	Stephen A Cortese, Chairman Terry A Peterson, President and CEO Virginia M Robbins, Executive VP and COO
Gold Stars	An all-star team! Clearly with folks like these in charge, the California Bank of Commerce has the steam it needs to power and support growth: CEO Terry Peterson founded Charter Bank in Bellevue, WA in 1998, grew it to $322M in assets and sold it nine years later for 3.2x book value Commercial Lender Rick Harbaugh brings long-standing business relationships from his 15 years experience as a mid-market lender at San Francisco's City National Bank and US Bank  Business Development Manager Colleen Atkinson managed a $250M deposit portfolio at Comerica Bank $281M in deposits! That's higher than deposits in any other bank branch in Lafayette, CA — more than the... $275M in Wells Fargo's single largest area branch $133M in Westamerica's FOUR local branches, combined $62M in Opus Bank's TWO local branches, combined In a hot market! California Bank of Commerce is geographically situated in what analysts have argued is America's hottest banking market. In Lafayette's Contra Costa County... Real estate values have rebounded 9% over the past 12 months alone The I-680 Corridor boasts more square feet of office space than the City of San Francisco Available deposits exceed $34B, not counting the $168B in neighboring San Francisco County Enviable loan growth! Contrast the trendlines of Loans Outstanding at California Bank of Commerce and Westamerica — one of our nation's best-managed and most pristine banks: Volume of Loans Outstanding *Adjusted for $1.2B acquired in County Bank FDIC Acquisition
Sources	California Bank of Commerce website FDIC Filings SNL Financial SeattlePI.com article California Bank of Commerce Newsletter Confidential interviews with shareholders