Sortis Holdings Inc. (SOHI)

[genlou]

illegal, 1.10

[genlou]

Illegal, wow! that is wonderful!

[illegal_alias]

Flying high more like it - http://www.golocalpdx.com/news/portland-bank-to-service-medical-marijuana-industry

[illegal_alias]

New website looks good, too. https://www.mbankonline.com/

[illegal_alias]

Very impressive numbers. I've been looking at the 3rd qtr call rpt and comparing it to Q2. $4,762,000 cumulative net income for the bank reported in Q3. With $1,570,000 cumulative as of Q2, that's a net of $3,192,000 just for Q3! The holding company costs have been about 13-18% per quarter, so I would guesstimate that number translates to about $0.26/share for Q3. If so, that puts the TTM EPS at $0.45. If this were a fully reporting SEC bank, this should be at about $7/share based on a PE of 15-16.

All treats, no tricks. Happy Halloween!

[BigCat]

I certainly do! You were practically spot on!!!

MBNC is putting up some great numbers lately...

[illegal_alias]

Hey, Joey, remember when I came up with an estimated 9.5 million shares in the o/s early last year? I was pretty close - 9,510,645 shares. https://www.mbankonline.com/wp-content/uploads/2014/09/1st-Q-2014-Merchants-Bancorp_web.pdf see second page

[genlou]

Salty, that would be great.

[SaltyMutt]

I think the MBNC bird is going to be soaring in about three or four weeks.

[genlou]

illegal,


I hope MBNC had a great quarter.

[genlou]

illegal,
Thanks for sharing the graph.It looks wonderful.MBNC is doing very well.

[illegal_alias]

MBNC has done an excellent job of cleaning up troubled assets:
http://banktracker.investigativereportingworkshop.org/banks/oregon/gresham/mbank/

[genlou]

illegal, I believe MBNC volume increased today.

[genlou]

illegal, hopefully not to long.

[genlou]

illegal, hopefully not to long.

[SaltyMutt]

It appears the Comeback Kid has indeed come back. MNBC was a whopping $1,570,000 on the green side of the ledger for the 2nd quarter of 2014. I don't see the FDIC shutting down this bank anytime soon.

[illegal_alias]

Thanks Genlou. I looked yesterday, so it must have posted later in the day or first thing this morning. Income of $1.57 million. I don't know what the holding company overhead is, but even if you lop off $1/2 million, that is still $0.10+ per share which would yield $0.26/share ttm. This bank should be trading at $2+, but I still think the lack of SEC filing kills the share price with retail investors. Wonder hold long it will take for the shareholder letters to be written and sent...

[genlou]

illegal, earnings on that FDIC site.

[illegal_alias]

MBNC ttm earnings thru 2014 Q1. Based on their shareholder newsletters, it is approximately $0.20/share allowing for rounding error.

Q2 2013 - $322K or .03/share
Q3 2013 - $614K or .06
Q4 2013 - $677K or .06
Q1 2014 - $453K or .04
ttm - $2.066M or .20/share

The PE for regional Pacific banks is 19.8 (http://biz.yahoo.com/ic/416.html), so MBNC should be trading at $3.96. Even though they report to the FDIC, I think the PPS is held down since they do not report thru the SEC. They were last ay $4 in 2008 and stopped reporting after Sept 2008.

[illegal_alias]

1st qtr shareholder letter and financial results - https://www.mbankonline.com/media/1st%20Q%202014%20Merchants%20Bancorp_web.pdf

mine came in the mail, also.

[genlou]

illegal,

Yes, management is doing a good job and that is what is important.

[illegal_alias]

I guess they got them out a bit late, eh? Oh, well, at least management is doing a good job.

[genlou]

illegal,

I received my proxy material (yesterday) May 1.

[genlou]

illegal,good to see MBNC pps moved up today.

[illegal_alias]

Genlou, did you get your proxy materials late? Mine arrived yesterday for last Friday's meeting. Not that I was going to drive cross-country to Oregon, but would have been nice to respond.

[illegal_alias]

Ditto. I would have liked to pick more up in the low .40s

[genlou]

illegal,I belive MBNC continue to be the Comeback kid.

January 31, 2014
Dear Friends and Shareholders,
2013 was a great year for MBank and its holding company, Merchants Bancorp. We’re the Comeback Kid and our turnaround story, as the underdog
everybody roots for, is being discussed nationally.
We are delighted to share financial results for the 4th quarter of 2013 and for the year itself. In the 4th quarter Merchants Bancorp reported net income
of $677 thousand or $0.07 per share compared to a net loss of $87 thousand or ($0.01) per share for the year ago quarter. Net income for 2013 itself was
$1.7 million or $0.07 per share, compared to a net loss of $215 thousand or ($0.02) per share in 2012.
Let’s add some perspective. MBank had $2 million in earnings in 2013! Just four years ago, we posted losses of close to $15 million (tough memories).
Our recovery is well in hand and the trend and trajectory are impressive. This is an exciting time for MBank as we move from survival to strategically
planning for the future!
Here are some MBank highlights for 2013:
• Earnings increased every quarter in 2013
• 2013 brought an earnings turnaround with MBank returning to profitability
• Asset quality improves with legacy troubled assets dropping off one after another
• Liquidity remains strong
• We achieved 7% in our tier 1 leverage ratio, nearly doubling our all-time low of several years ago
• We continue to strive towards the high bar set by the regulators of 10% (regulatory capital to asset size)
Organic earnings, capital raised and intentionally shrinking our size contributed to these improvements. As discussed in a previous letter, we intend
to explore bringing in preferred capital (behaves much like a loan and bears an interest rate). We will act fairly quickly in examining this option, and if
we proceed, you will see correspondence (to all shareholders) seeking to approve the authorization of issuing preferred capital. This will be limited to
accredited investors per SEC guidance. We invite any shareholder who would like to consider participating to call Jef Baker, Merchants Bancorp CEO at
503-674-3401.
2014 will bring an exciting change with the plan to remodel our branch in Gresham. We believe the work will be complete this summer, with a grand re-
opening to follow. We previously shared our decision to close the Hollywood branch on January 31, 2014. That will provide some added efficiency within
the bank as we move forward. While strategically shrinking on one level, we are actively growing on another. MBank is bringing cutting edge technology
to community banking (e.g., online account opening, our mobile banking application, payment systems via email and text, etc). Please spread the word
that with no-fee access to more than 23,000 ATMs nationwide, we offer virtually every service of a large bank, plus personalized customer service. Every
business and consumer alike should bank at MBank!
MBank’s story is truly impressive. We have an amazingly dedicated and loyal group of MBankers who make this possible. The positive results have
energized us even more and reignited our passion for serving our customers and our commitment to make MBank the very best it can be. As an investor,
you are part of our story. If you don’t bank with us, please open an account today and join in our efforts to make your shares more valuable. It is easy;
just call Casey Ryan, Director of Corporate Development, at 503-674-3111, and he will take care of everything for you. We continue to appreciate your
trust and support of MBank, your bank.
Sincerely,
Jefry A. Baker Stanley C. Morris
President & CEO Chairman of the Board

[genlou]

illegal,

I wish I had been watching I would have added to my shares.

[illegal_alias]

Any idea what happened with MBNC today? Wasn't watching.

[illegal_alias]

Check your PM mailbox for important message.

[SaltyMutt]

Oops! My bad! I was taking a look at some banks yesterday and got the info from Yahoo Finance. I just took a look again and saw that that was the BV from Sept. 2008. I was almost about to sell my cats for some investment money. I guess the cats are safe now. TY was calling this to my attention.

[illegal_alias]

Wow! Where did you find that? Or, did you crunch your own numbers?

I came up with a much more conservative number at the end of October.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=93569644

[genlou]

Salty, that is great!

[SaltyMutt]

The book value for MBNC is 5.93.

[illegal_alias]

Some trading action today

[genlou]

Hi illegal,

I am glad MBNC mail out quarterly reports to shareholders.

[illegal_alias]

Hi genlou. Got my shareholders letter in snailmail last night. Good year and quarter.

[genlou]

illegal,in time more shareholders will become aware of how well MBNC is coming along.You should recieve MBNC last quarters earnings report in the mail this time.I have not received it yet but I did receive the quarter before last report.

[illegal_alias]

Yes, it was an excellent qtr. If I recall, last qtr was .06 eps after the effect of the holding company was accounted for. And that was on about 1.2 million in bank net income. Remember that the numbers are in the 1000s. So we should see better than .06 this quarter. That should give us in excess of .14 for the ttm. If this company were fully reporting, it would be over $1 at this point on the way to $1.50+. Unfortunately, that it the price we shareholders pay when the company is not fully SEC reporting.

[mikembte2005]

I can open the report now. Yes it was another great quarter. I wish I would have loaded up on shares also. I do have a few but not much:(

[genlou]

mikeembte2005

2. Net income (loss) attributable to bank and noncontrolling (minority) interests (sum of 1,982

The bank earned 1,982.After earnings are released on MBNC site.We will know what effect the holding company had on earnings.MBNC is coming along well.I wish I had purchased more shares when the pps was cheaper.

[mikembte2005]

Just gave it a try but looks like the website is either going slow or temporarily down. Was 4th Q even better than 3Q?

Thanks for you help!

[genlou]

Mikembte2005
Go to the site below and type in MBNC FDIC certiticate number.You will be able to view MBNC last quarter earnings.

MBNC FDIC certificate number 34093

http://www2.fdic.gov/idasp/main.asp

[mikembte2005]

Do you happen to have the link for there 12-31-12 filing? Thanks.

[illegal_alias]

Looking good. So is NHLD today,also.

[genlou]

illegal, MBNC pps .9299

[mikembte2005]

If next quarter earnings go up another .03 to .09 then averages that at the next 4 quarters would be .36 X 10X earnings would be

$3.6 a share!

[illegal_alias]

Excellent. That puts their ttm EPS at +.08

Q4 2012 (.02)
Q1 2013 +.01
Q2 2013 +.03
Q3 2013 +.06

with regional banks at an average EPS of 14, this should be trading around $1.12 which is what I had calculated as an estimated book value in an earlier post.

I think we have a winner here folks.

[genlou]

MBNC earned $0.06 per share in the third quarter of 2013

[genlou]

illegal,October 31, 2013
Dear Friends and Shareholders,
We are excited to report 3rd quarter earnings more than doubled those of this year’s 1st and 2nd quarters, combined!
We also want to share that during a recent and very collaborative conversation with regulators, they noted that we have made a remarkable turnaround,
just in the past two years. Our ratios and metrics two years ago were at a level where most banks do not recover. They acknowledged that what our
employees, management, and our Board have accomplished is very rare.
The proof is in the numbers. Third quarter financial results for Merchants Bancorp, the holding company for MBank, are attached. Merchants Bancorp
reported net income of $614 thousand or $0.06 per share in the third quarter of 2013, compared to earnings of $111 thousand or $0.01 for the prior
year’s quarter. While this quarter’s earnings were boosted by a gain on the sale of a foreclosed asset, structural profitability (core earnings) continues to
increase. Expense levels are considerably lower with the drastic improvement in asset quality of the bank.
Achieving structural profitability is a major accomplishment for MBank. We achieved that through resolving problem loans and foreclosed assets with
minimal losses. Plus, the large amount of time, energy and expense related to those problems diminishes with our significant asset quality improvements.
That radical improvement is evident in a growing net income (compared to historical losses). With many challenges resolved, we now can focus on
strategic initiatives moving forward versus solely dealing with legacy problems.
Last quarter we shared how MBank is improving in each rating area our regulators evaluate us on. We continue to make great strides and show
improvement in all categories. All strategic initiatives, in some way, continue to focus on improving MBank’s capital position. Last quarter we shared
our leverage ratio (regulatory capital to asset size) was 6.1%. We have made a significant improvement in one quarter to boost that ratio to 6.6%. We
continue to strive to achieve a goal of 10%, as is required by our regulatory order. Our ongoing profitability and earnings will get there over time, but
we continue to get regulatory pressure to improve our capital position. Aside from earnings, the way we improve our position is to shrink our size or
to add capital through another capital injection. We are actively considering both strategies. As shareholders ourselves, we are sensitive to any further
dilution, so we are considering preferred stock or subordinated debt (non-dilutive equity), as an alternative. That type of capital would behave like a loan
to Merchants Bancorp and could, for example, carry an interest rate of around 5% with a range of $2-5 million. As shareholders, if qualified, you may be
interested in such an investment. If you have interest in participating in that type of investment or can refer us to interested qualified parties, please call
Jef Baker, Merchants Bancorp CEO, at 503-674-3401.
With regard to our branch structure, we have three initiatives underway: