Community Bank of South Florida Inc (fka CBKS)

[56Chevy]

Think of OTC banks as the finest and best homes in a modest neighborhood.

Its true higher risk and OTC companies go hand in hand...however when you'e talking about banks those generalities don't apply.

Banks are the most highly regulated industry on Wall St. Banks can't hide bad news like some of the other OTC companies can. When a bank says they have a dollar in the vault there will be an army of people there physically checking to see if there really is a dollar in the vault...and if it isn't they put the CEO under bright lights and ask why it's not there.

Even though OTC banks aren't under stricter exchange reporting rules many voluntarily offer the same information you would expect to see from a listed company. Some of the most respected and solid banks in the country are on the OTC. FMAO is a prime example.

I follow dozens of banks...the lions share are under $1 Billion in assets. With the exception of just a handful they all list on the OTC. Regulation and SEC compliance costs are more than they've ever been in banking history. In fact the combined higher costs of compliance (Reg and or SEC) is reason #1 why banks are being forced to consider consolidating asap. They simply can't absorb these rising compliance costs alone and thrive doing it for very long. Reg compliance is mandatory..banks don't have a choice if they want to particpate or not. Listing and the cost associated with it are a choice... and many choose not to spend the extra time or money..it doesn't add value..it's just an expense they can do without.

With the exception of a few I get every bit as much info I need as an investor from my OTC banks as I do from the listed ones.

Some OTC banks only put out a yearly report but you can still get the quarterly info you need from the FFIEC.