AI
Thursday, October 14, 2010 4:07:40 PM
Income Statement
Net income to common shareholders for the second quarter was $1.5 million or 26 cents a share, following $1.4 million, or 24 cents a share, the previous quarter and a net loss to common shareholders of $6.9 million, or $1.46 cents a share, a year earlier.
The company has now been profitable for four straight quarters following the loss in the second quarter of 2009, when the provision for loan losses was $13.1 million. The provision declined to $4.5 million for the second quarter of 2010.
Another bright spot for earnings is that Tennessee Commerce's net interest margin - the difference between the average yield on earning assets and the average cost of funds - for the second quarter was 4.27%, increasing from 3.85% a year earlier.
Balance Sheet
Total assets were $1.4 billion as of June 30. The company owes $30 million in TARP money and reported a Tier 1 leverage ratio of 8.96% and a total risk-based capital ratio of 10.98% as of June 30. That second ratio needs to exceed 10% for most banks to be considered well-capitalized by regulators, and the Tennessee Commerce took action by completing a common stock offering to raise $24.2 million on August 11.
Tennessee Commerce's nonperforming assets ratio was 2.72% as of June 30 and the second-quarter net charge-off ratio was 1.47%.
Stock Ratios
Shares were trading for just 0.3 times tangible book value and just 6 times the 2010 consensus earnings estimate of 63 cents a share among analysts polled by Thomson Reuters.
Analyst Ratings
Two out of three analysts covering Tennessee Commerce rate the shares a buy, while the other recommends investors hold the shares. Based on the company's improving earnings and decent asset quality - especially in the current environment for a southern bank - the shares are downright cheap despite the TARP overhang.
http://www.thestreet.com/story/10867617/3/bank-stocks-be-careful-with-consensus-price-targets.html
Net income to common shareholders for the second quarter was $1.5 million or 26 cents a share, following $1.4 million, or 24 cents a share, the previous quarter and a net loss to common shareholders of $6.9 million, or $1.46 cents a share, a year earlier.
The company has now been profitable for four straight quarters following the loss in the second quarter of 2009, when the provision for loan losses was $13.1 million. The provision declined to $4.5 million for the second quarter of 2010.
Another bright spot for earnings is that Tennessee Commerce's net interest margin - the difference between the average yield on earning assets and the average cost of funds - for the second quarter was 4.27%, increasing from 3.85% a year earlier.
Balance Sheet
Total assets were $1.4 billion as of June 30. The company owes $30 million in TARP money and reported a Tier 1 leverage ratio of 8.96% and a total risk-based capital ratio of 10.98% as of June 30. That second ratio needs to exceed 10% for most banks to be considered well-capitalized by regulators, and the Tennessee Commerce took action by completing a common stock offering to raise $24.2 million on August 11.
Tennessee Commerce's nonperforming assets ratio was 2.72% as of June 30 and the second-quarter net charge-off ratio was 1.47%.
Stock Ratios
Shares were trading for just 0.3 times tangible book value and just 6 times the 2010 consensus earnings estimate of 63 cents a share among analysts polled by Thomson Reuters.
Analyst Ratings
Two out of three analysts covering Tennessee Commerce rate the shares a buy, while the other recommends investors hold the shares. Based on the company's improving earnings and decent asset quality - especially in the current environment for a southern bank - the shares are downright cheap despite the TARP overhang.
http://www.thestreet.com/story/10867617/3/bank-stocks-be-careful-with-consensus-price-targets.html
Frankiy´s Moneymaker Board http://www.investorshub.com/boards/board.asp?board_id=8338
Trade Smarter with Thousands
Leverage decades of market experience shared openly.
