BCBP
I sold my very small position IN BCBP
The quarter stunk. .41 wasn't good. But that was the minor problem. Number 1 my guess is net interest margins will be down again next quarter, they have not done a good job of trying to stabilize it. #2 Deposits were down quarter over quarter. #3 Loans were down quarter over quarter. #4 Classified Assets increased rough 50% sequentially. One thing why I kept BCBP a smaller position and never added on the way down, is it was never clear how much office exposure they have, and that has always been my concern. I was okay with it when Asset health wasn't showing negative signs, in the last two quarters classified asset have went from 17.6 million to 42.8 million. That is a trend I don't like seeing. Furthermore as this is happening there provision went from 622k in q1, 1350k in q2, and 2,205k in q3. Now it is good that they are being conservative and doing this, but it is not good if this is a trend of higher provisions that will eat into profits if this trend doesn't stop the bleeding soon. I've seen a bunch of banks that have had waaaaaaaaaaaaaaaaaay better quarters, and I rather be in those too be honest. So I will take the tax loss here and move on. All is just my opinion, and I could always be wrong though.
