State Bank Corp. (fka SBAZ)

[56Chevy]

Hi free bee,

I have no investing interest in this bank but opened the board to have a place to keep notes.

The lion's share of small community banks in the country are in some phase of recovery. SBAZ is no different and if I were to grade the bank on a 1 ~ 10 scale I would give it a 7.

The positives I see are they're beating their required cap ratios. They're not in any danger of being shut-down or given further regulatory sanctions.

They don't owe TARP.

Their EPS was a modest .06 @ share.

They've managed to decrease their troubled assets and yet increase their total assets at the same time which is rare for bank in this phase of recovery.

One of the most profitable (and smart) things they've done is to originate mortgages...however those profits can't be relied on to be sustained qtr after qtr (that would be true for any bank).

Net Interest Margin is 4.14% which is robust...many banks are in the high 2% ~ low 3% range.

All in all this is a solid bank and gaining strength.

So what are the negatives from an investment stand-point? It's way over-priced...and I'm not a fan of their stock dividend... it only increases the O/S.