I think you have the wrong tangible book value for the common for UBAB. Tangible book value was about $80mm before ECIP and now $198mm after. It says $55.27 tangible book value now on seekingalpha. So maybe .64 p/b. I had to double check this one because this company seemed to have a decent long term business with good management. About 20% EPS growth for 10 years on the back of 6% revenue per share growth. NIM is above 3.65%. Their historical p/b has been about 1. Their ROE for the last 4 years has been between 13% to 24%. Forward compounding returns might imply mid 20's% for many years and this stock could be held long term(imo from initial research).
I have made a mistake somewhere but I am not sure where. When I wrote the article the most recent balance sheet was the one for Q2 2022. Note that they do something unusual in the balance sheet for Q3 2022: there the book value of the ECIP prefs is only 1% of what they received. They booked the difference on "additional paid in capital".
Using a conservative valuation of the ECIP prefs (discounting 80%) I arrive at tangible book value = $155 million. With about 3.6 million shares I get $43 of tangible book value per share. When I write the article the share price was $29.45, so P/B was about 0.68.
I think you have the wrong tangible book value for the common for UBAB. Tangible book value was about $80mm before ECIP and now $198mm after. It says $55.27 tangible book value now on seekingalpha. So maybe .64 p/b. I had to double check this one because this company seemed to have a decent long term business with good management. About 20% EPS growth for 10 years on the back of 6% revenue per share growth. NIM is above 3.65%. Their historical p/b has been about 1. Their ROE for the last 4 years has been between 13% to 24%. Forward compounding returns might imply mid 20's% for many years and this stock could be held long term(imo from initial research).
I have made a mistake somewhere but I am not sure where. When I wrote the article the most recent balance sheet was the one for Q2 2022. Note that they do something unusual in the balance sheet for Q3 2022: there the book value of the ECIP prefs is only 1% of what they received. They booked the difference on "additional paid in capital".
Using a conservative valuation of the ECIP prefs (discounting 80%) I arrive at tangible book value = $155 million. With about 3.6 million shares I get $43 of tangible book value per share. When I write the article the share price was $29.45, so P/B was about 0.68.
there are still larger bank stocks that trade below book value. E.g. Credit Suisse trades for 25% of book value.
Credit Suisse suffers from serious financial distress.
yes, but I think the bank will not default. see here: https://www.youtube.com/watch?v=sDSOOtWAF0k
SFDL is the code and not SFD
Thanks, fixed it.