CBBI
Sold my small position in CBBI this morning.
The report wasn't underwhelming. It stunk. Let me tell you why. Deposits are in free fall that is a huge concern for me. Earnings of .54 happened with a big gain on sale of loans in non interest income (Which probably won't happen in q2 to that extent, hence I think that will drop earnings by about .05 or so next quarter). I feel nims will continue to decline. Interest earning asset have been in decline. Loans are in decline. Now they are talking about expaning to the east, what I here even if they are correct, is some startup expenses at first before we see revs. Hence possible higher expenses in the short run. very cheap to tangible book value, but if you think earnings are going to drop from here now possibly by a decent amount over the coming quarters, and your concerned about the huge drop in deposits, drop in loans, drop in interest earnings assets. This doesn't excite me, I've seen plenty of bank reports that excite me more than this. So I decided to take my tiny loss and move on. All is just my opinion, and I could always be wrong though.
