Hank's portfolio of Small Banks...
Return on eguity must be > 7.75%
Return on assets must be > .5%**
Asset Growth must be positive...
Income growth rates >
Diluted EPS growh rate >
Efficiency Ratio improving...If above 0.56% (improvement over previous period must be at least 0.04%..)
Is a ratio used to calculate a bank's efficiency.
Non-interest expense divided by net interest income plus non interest income less interest expense.
Investopedia Says: However the ratio is calculated, its purpose is to evaluate the overhead structure
of a financial institution. Banking is no different from any mature industry - the surviving companies are those that keep costs down. The efficiency ratio gives us a measure of how effectively a bank is operating. Efficiency is usually a decent measure of profitability.
Increase in income from sources other than interest growth >
**BASED ON EQUITY,,LESS ANY NEW EQUITY FUNDING DURING THE PREVIOUS 12 MONTHS...