Author Archives: ntobik

CIB Marine Bancshares: growth obscured by overhead

CIB Marine Bancshares (CIBH) is a small town branch bank located in Illinois, Wisconsin and Indiana. In the face of a low interest rate environment, the company has continued to grow their assets, reverted to profitability, and is trading significantly below book. Finally, with the recent up-listing to the OTCQB and discount to book, we believe that CIBH could make for a decent acquisition target and/or mean reversion to book value.

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Assets growing with the bulk in Loans

CIB Marine Bancshares continues to grow their assets quarterly. What’s even better is that the bulk of their asset growth comes directly from an increase in loans or leases.

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Backing up the story a bit, in the year of 2009, CIB Marine Bancshares hit an inflection point, in which total assets continued to fall from a high of $696,018m in 2009, to a low of $454,468m in 2013. In further context, net loans and leases fell from a high of $457,607 in 2009 to a low of $306,337 in 2012.

Moving forward, despite the historical low asset and loan portfolio, 2012-2013 was an inflection point in it of itself. Since the bottomed out low, total assets and net loans and leases have grown by 11.98% and 13.57% annualized, respectively.

Using our data at CompleteBankData, we can easily look at the historical loan summary, to determine where the bank’s growth is coming from.

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From the picture above, we can see that a large portion of their loan growth is from 1-4 family loans. From 2012-2015, 1-4 family loans has increased at an annualized rate of 28.96%. This above average growth in 1-4 family loans suggests that the economic environment for the average middle class family is improving in the Illinois area.

A further suggestion that the economic environment is improving is when we take a look at their commercial real estate loan portfolio. From 2013-2015, their commercial real estate loan portfolio has grown at an annualized 13.44% rate.

As the economic environment they operate in continues to improve, CIB Marine Bancshares should directly benefit from consumer lending growth. In addition, banks looking to easily grow their assets in a recovering economic environment may look into the market in which CIBH operates, or look at how CIB Marine Bancshares operates differently from peers.

Profitability is anything to ‘Pound the Table’ about

While it’s great that CIB Marine Bancshares has been growing their asset base and loan portfolio at an above average rate the banks current profitability situation may be what is holding the bank back from trading at book value.

The company has an unimpressive ROE and ROA ratios of 0.48% and 0.05%, respectively. Furthermore, CIB Marine Bancshares’ expense structure isn’t optimized, which has pushed their efficiency ratio to 98.20%.

When comparing the company to its local peers, we can see that they have some of the lowest profitability ratios in their operating area.

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Despite their absolute and relative low profitability ratios, the company has a respectable loan portfolio and has continued to de-risk itself in the past few years.

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Given the company’s growing asset base, non-risky loan portfolio and sub-par profitability ratios, it’s possible that the company could make for a great acquisition target. In addition with a P/B ratio of 0.17x, a P/TBV ratio of .81 and the majority of their expenses classified as non-interest expense, a company focused on four-wall cost control could easily revert CIB Marine Bancshares back into a better state of profitability.


According to CompleteBankData, CIB Marine Bancshares is a cheap and growing bank. The bank trades for 81% of tangible common equity has a growing asset base and sub-par profitability ratios (weighted down by an overly burdened cost structure), another bank focused on profitability could swoop in, cut costs, grow their asset base and make a great return.

In short, we believe that CIB Marine Bancshares is a compelling investment case, which should get more investor visibility from the recent OTCQB up-listing. Finally, their undervaluation to their book value should grab the attention from an acquiring bank.

-Nick Bodnar (Analyst)

Penns Woods offers an attractive yield plus growth

What constitutes a good bank investment?  Is a good investment one that’s purchased as part of a merger, or one that’s cheap and appreciates to fair value?  Either of these could work, but there’s a third route, a slightly undervalued bank with an attractive dividend yield that’s growing.

In the current environment banks are divided into two groups, those banks that are growing and those that are complaining about the lack of growth.  The growing banks are purchasing the complaining banks.  Shareholders can benefit from both sides of the aisle.  If a shareholder purchases shares of a complaining bank at enough of a discount they realize a gain when it’s sold.  But shareholders can realize a gain on a growing bank by purchasing shares then sitting back and doing nothing else.

Penns Woods Bancorp is a bank holding company that has two banking subsidiaries, The Jersey Shore State Bank, and Luzerne Bank.  The subsidiaries are shown below:

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Jersey Shore State Bank is the larger of the two subsidiaries with almost $1b in assets, $700m in loans and sizable earnings.

Jersey Shore State Bank has 14 branches spread across Lycoming, Clinton, Montour, and Centre counties.  Luzerne Bank has eight branches in Luzerne county.  Contrary to the name, Jersey Shore State Bank doesn’t have any branches in New Jersey, or near the Jersey Shore.  Rather the bank’s geographic footprint is centered around the tiny town of Jersey Shore, PA, located near Wilkes-Barre.

The area where the bank operates isn’t a high growth area, it’s a rural area with ties to the coal mining industry.

The following is an overview of the bank’s performance since Q2 2013:

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There are a few items of note.  The first is that the bank hasn’t grown much over the past few years.  The bank has grown over the past 10 years, Jersey Shore Bank grew their assets from $593m in 2003 to $893m at the end of 2014.  Luzerne Bank grew their assets from $182m in 2003 to $344m at the end of 2014.

The majority of the bank’s loans are residential with a small amount of commercial and even smaller amount of construction lending.  The bank’s lending is supported by a stable deposit base of mostly retail deposits held in money market or savings accounts.  In a higher rate environment savings account deposits are not ideal, but when the bank is paying .4% for their all-in funding costs it’s not bad.

The bank isn’t dealing with any troubled assets, and never really experienced any asset issues from the crisis either.  Non-current loans to loans hasn’t risen above 2% since 2003.

Penn Woods Bancorp is a well run bank, and this shows in a few of their operating metrics.  They have a return on assets above 1% as well as a return on equity above 10%.  Their efficiency ratio is 66% as of the last quarter, which is slightly below average for a bank their size.

Simply put this is a well run community bank doing what it does best, taking community deposits and re-lending them back into the community.

For investors the question is “what’s the bank worth?”  The follow picture shows the bank’s valuation model from the Bloomberg version of CompleteBankData (APPS BANKS <GO>).

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Based on the average of the three models the bank is slightly undervalued.  They could be worth $45 and they trade at $41.  That doesn’t leave much room for appreciation.  But I feel that misses out on some of the value the stock has.  The bank pays a generous dividend and currently yields 4.48%.  Investors receive an immediate 4.48% return plus the ~6% growth from the bank reinvesting their earnings (minus their dividend) back into the business.  Add in a small gap between the current price and value, and together these things could add up to a 10%+ return for investors willing to buy and hold the bank.


Ohana Pacific Bank (OHPB)

One of my favorite ways to find a new banks is using the graphic valuation overview tool in the Bloomberg edition of CompleteBankData (accessible on your Terminal via APPS BANKS<GO>). The reason I like this overview is because it shows all of the traded banks in the US compared to one other graphically.  I’ve included a screenshot below showing a portion of the ROE vs P/B graph.  On the left axis is the ROE and the bottom axis is P/B ratio.  The goal is to find banks that are trading for or below book value with above average returns on equity.  The orange dot is representative of Ohana Pacific Bank (OHPB).


Ohana Pacific Bank is a small bank located in Honolulu, Hawaii.  The bank was founded in 2007, which wasn’t ideal timing for a de novo bank.  The bank ended 2007 with $64m in assets which they’ve grown to their current $112m.  The bank primarily serves the Korean community in Hawaii.

While the bank’s assets have almost doubled the bank’s equity has only grown by about 50%.  Most of this is related to their lack of income for the first four years of operation.  The graph below shows net interest income in red and net income in blue.  The graph is a great example of how asset scale matters in banking.  While net interest income has been growing since the start of the bank the bank generated losses as they struggled to overcome fixed costs with a small asset base.


The bank’s loan book is in good shape.  At the end of the first quarter only .16% of their loans were non-current.  The bank is over-reserved with a 907% loan loss reserve to non-current loans.  What’s even more encouraging is their non-current loans have been declining.

The bank is over-capitalized with a 12% leverage ratio and 17.7% Tier 1 ratio.  They have no debt or FHLB advances or preferred stock.  Equity stood at $15.1m, well above their market cap of $7.8m.

The negatives for Ohana Pacific Bank is that they still have a high efficiency ratio due to their small asset base.  While the bank has done well growing assets they need to put more of them to work.  The limiting factor is the amount of deposits and capital the bank has to work with.  They could loan out an additional $7-10m, which might generate an extra $50k in earnings or so.

To really grow the bank needs to significantly increase assets, cut costs to boost profitability or be acquired.

The following picture shows what the bank might be worth under different valuation scenarios:



The bank is worth the most of they were to simply trade in line with peers.  Often a bank doesn’t trade with peers because the shares are too illiquid, the bank has credit quality problems, or the bank has a visibility issue.  Trading at a similar multiple as peers would result in a value of $15.23 per share.

In the case of Ohana Pacific Bank my belief is the reason the bank doesn’t trade in line with peers is because shares are illiquid, the market cap is small and the bank provides no information to investors.  Financials are available on as well as in spartan press releases the bank issues at irregular intervals to the local paper.

If the bank were to be acquired and the acquiring bank were to save 35% shares could be worth $12.91 compared to the most recent price of $5.60.

The bank is small, but they’re profitable and have a quality loan book.  At a minimum they should trade for at least $10.80, book value.  The largest negative against Ohana Pacific Bank is the bank rarely trades and it could be difficult to acquire a position.

Disclosure: No position

Is this credit quality chart concerning?

A metric we watch closely is a bank’s non-performing assets.  These are assets that are late, have ceased paying, or are already in foreclosure.  A bank with 3% of non-performing assets (NPA) or less is considered ideal.  But it’s not the absolute level that matters as much as the trend.  A bank with a high level of NPA’s that is trending downward might be better than a bank with low NPA’s trending upward.

The chart below shows the number of banks with increasing NPA trends.  Does this chart concern you at all?

npa trend

The number of banks with an increasing NPA trend increased from less than 10 most quarters to 117 at the end of 2014.  The data isn’t fully in for Q1 2015 yet, but our guess is the chart is going to continue to spike higher.

The question is whether this is a warning sign of cracks in the economy or something more benign?

Historic average bank operating metrics

A historical perspective can be valuable when trying to place a bank into context.  We all know that rates are lower than they’ve been in decades, but are banks any less profitable?

We decided to put together 10 years of historical bank stats as a way to gain a perspective on where banks current stand.  (A link to download the spreadsheet is below)

From this data we built a few charts shown below.  The most interesting chart is one showing bank funding cost, yield on earning assets and net interest margin.  As rates have declined the earning yield on assets has declined slower than what banks have paid to depositors.  This has resulted in a lower overall net interest margin, but not as low as some would expect.  Bank average NIM peaked at 4.18% in 2005 and as of 2014 stood at 3.7%.  As rates have fallen to zero the average NIM only fell 11%.

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Another interesting chart is of bank capital:

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Why is this chart interesting?  Because it’s hard to find the financial crisis on the chart.  Bank capital has remained mostly steady since 2004.  This is average bank capital across all banks, and yes, there were bank failures.  But as an industry banking has remained fairly steady since 2004.  Certain segments of the banking industry are holding more capital now compared to in the past, but as a whole the industry is fairly stable.

If you’re interested in digging into this data we’ve provided a link to download the entire spreadsheet with raw data below.

Download the spreadsheet: CompleteBankData_BankingStats_Annual

Drilling down into bank details

“The devil is in the details”

A lot can be gleamed by looking at summary level information for a bank, but to truly understand a bank one must dive into the details.  Fortunately CompleteBankData provides information on over 2,000 individual financial metrics that are easy to access and use.

In this email we’re going to walk through how to investigate granular loan details for a given bank.

Navigate to the Details page by clicking Details on the menu bar.  Then click the Actions menu and select Find Bank or Holding Company.  On the Find Bank or Holding Company dialog box enter “Allegheny” and click Find.  Select “Allegheny Valley Bank of Pittsburgh” and click OK.

You will be shown the screen below:Screen Shot 2015-04-07 at 4.08.48 PM

This is the main detail page.  At the top you will see the stock price if the bank is traded.  At the top right is a drop down menu displaying that you’re on the Summary page.  The left side contains relevant operating and market statistics (if the bank is traded).  If you scroll down you’ll see an income statement summary, balance sheet summary and loan summary table.

Click the drop down that’s labeled Summary.  Then select Loans.

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This will take you to the detailed loans page.

Screen Shot 2015-04-07 at 4.12.11 PMAt the top of the page are graphs showing the trend of the banks different types of loans.  Below the graphs are various financial tables showing the bank’s loan breakdown.

If you click on the green arrow next to the title you will be presented with a menu allowing you to change the perspective of the table.  Financial data tables can display data in a quarterly format, or annual format.  Additionally all data tables can be exported to Excel.

When looking at Allegheny Valley Bank of Pittsburgh we notice that their loans have grown from $214m in Q4 of 2012 to $237m in Q4 2014.  Further investigation shows that they have no agricultural lending, farmland lending, or lending to foreign depository institutions (foreign banks).

For example let’s assume we like the look of the loan book but are worried about asset quality.  On the drop down menu at the top right of the screen select Asset Quality.



The bank’s non-current loans to loans looks fairly low indicating a quality loan book.


Selecting other pages in the drop down menu yields similar details for other aspects for the bank.

If you’re interested in more information, or interested in a webinar on how to analyze banks please contact us:

email:   phone: (866)591-8315


Customized reporting

Looking for custom reports, historical data feeds or API access?  CompleteBankData has you covered with a number of different ways to access our data and incorporate it into your systems.

If you’re interested in any custom reporting please contact us so we can discuss your specific needs.

Email:    Phone: (866)591-8315

Custom Reporting

You probably have a number of custom Excel reports filled with formulas and formatting that you painstakingly crafted.  Getting data into these worksheets is unfortunately a manual process.  We can take your custom Excel templates and populate them with our data, automatically, and on-demand.

We configure our system to work with your template and add it to a list of custom reports you have access to via the My Banks page.

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API Access

We built CompleteBankData with scalability and expandability in mind.  The user interface and data warehouse are connected via our own API, the same API we make available to customers.

We have API endpoints for bank details as well as searching and storing bank information.  API endpoints can be tailored to your needs.  Our API includes an authentication mechanism and is secured by SSL.

If you have an application that would benefit from the inclusion of bank data you are probably a candidate for API access.

Historic Data Feeds

Want a set of fields for all banks dating back to 2003? Or maybe all bank data for all banks?  Our database is a point-in-time system perfect for data mining or historic quant strategy testing.  We can provide historic data tailored to exactly what you want.  Feeds are proprietary to your firm and customized to include only the data you need.

Exporting data to Excel from CompleteBankData

A natural question when looking at our database is “where does all this data come from?”  The thought of calling 6,000+ banks and manually inputting thousands of pieces of data is overwhelming, but thankfully that’s not what we have to do.  We pull our data straight from three sources, the FDIC Call Reports, Federal Reserve holding company reports, and SEC filings.

All US banks are required to file FDIC Call Reports and holding company reports quarterly (bi-yearly for small holding companies).  These reports are great at capturing information for regulators in a format regulators can use.  But they’re not as useful for investors or bankers, or really anyone who is familiar with financial statements.

We aggregate, standardize, format and then create custom metrics from the regulatory data. But we don’t just display the data better we also provide a set of tools that allows finding, comparing and manipulating the data easier.

Exporting to excel

Viewing data on a screen is great, but there is nothing like having the numbers in front of you and being able to manipulate them in Excel.  Like all of our system we provide fine grained control of Excel exports allowing you to export everything from a single table all the way up to every piece of data we have on a bank or holding company in a single spreadsheet.

Exporting a table

The smallest amount of data that can be exported is a single data table.  Every data table in CompleteBankData is exportable.  To export click on the green arrow next to the table’s title.  A menu will appear giving the option of downloading that table to Excel.


Exporting a bank or holding company

If you need more than a single table worth of data exporting either a summary or full bank detail is appropriate.  A summary export only includes the data tables shown on the Summary page for a bank or holding company.  These tables include, income statement summary, balance sheet summary, loan summary.  A full download includes all tables for the selected bank from all sub-pages.

On the bank’s Summary page click the green Actions menu.  A dropdown menu will appear with two options: Download Summary to Excel and Download All Details to Excel.  Select either of these options to export into Excel.


Exporting a set of banks compared to each other

At times it’s helpful to compare banks against each other, or manipulate a given metric over a variety of banks.  CompleteBankData makes this possible by enabling users to export comparison results to Excel.

Anywhere in the application where a bank name is listed you have the ability to add that bank to the Compare page.  From any of these menus select Send to Compare.  The graphic below shows the menu in the search results.  The Send to Compare link is also available on bank detail pages and the My Banks page.

Select Send to Compare to add a bank to the Compare page.



Alternatively you can add a bank directly to the Compare page by clicking the green actions menu and selecting Find.



After you are satisfied with the set of banks you’d like to compare select the green Actions menu again to add additional fields to compare against.


Your comparison screen show look similar to the following picture.  The only limit on the number of banks or fields that can be added to this page is your imagination.Capture05

When you are satisfied with your custom comparison set click the Download Results link in the upper right hand corner of the screen.  This will initiate the export to Excel.


Shown below is a picture of our custom comparison set in Excel.Capture08


If you have any questions or would like further information please contact us.

Searching for banks with

One of the advantages of is that the tool provides almost unlimited access to current and historical banking data.  A user can create extremely customized point in time searches over very granular data.  Want to find how many banks had between $35,000-90,000 of auto lending in 2006 and less than 40 employees in Iowa?  Creating that search isn’t a problem, it’s actually very easy.

The problem is that while the complex can be made easy it’s sometimes harder to do the easy things.  In providing users with unlimited search capabilities we figured users would take advantage and create complex searches.  What users actually did wasn’t what we expected.  Most users craft searches over one or two data points and not much more.

In this post I want to show how to construct a simple search to find banks trading for less than 120% of book value, less than 3% of NPA/Assets and a return on equity (ROE) of between 5% and 20%.

Log into and on the top menu bar hover over Search and select Search Holding Companies.

Screen Shot 2015-03-29 at 2.34.42 PM contains two search pages, one for banks, and one for holding companies.  Market data searches are on the holding company search page.  The holding company search page will load with one default criteria search, total assets for holding companies over the most recent report period.  The screen looks as follows:

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To add additional criteria click the Add Additional Criteria button.  This will bring up a dialog box with search criteria options.

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Scroll to the bottom and click on P/B to add the Price to Book metric.  Select additional metrics you wish to search over by clicking on them.  Once you are satisfied with your selections click on the Done button.  The criteria fields you selected will now be shown on the search page.

Adjust the ranges for each criteria by manually editing the lower and upper bounds, or using the slider to graphically adjust your selected criteria.  When you are satisfied with your selections and the ranges click the Search button to execute the search.

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Result matches are shown in the table below.  Click on a bank name to bring up the action menu.

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Select View Detail to bring up the detail page for the specific bank.  Once selected the detail summary page is opened.

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On the detail page relevant statistics are shown at the top of the page under the graphs.  Summary financials are shown below the Statistics table.  To access more financials select the Summary drop down menu at the top right of the screen.

If you have any trouble or would like additional help on creating more advanced searches please don’t hesitate to contact us.

High Yielding Bank Stocks

In a low rate environment finding investments with high yields is rare.  Even more rare is finding a set of bank stocks with high dividend yields.

I used CompleteBankData on the Bloomberg (APPS BANKS <GO>) to find a list of the highest yielding bank stocks with more than $1b in assets and yielding more than 4.4%.  The list of matching banks are shown below.


It should be no surprise that New York Community Bancorp is the highest ranked stock.  The bank has built a reputation as favorite for dividend investors.

All of the banks on the list have low Texas Ratios.  The Texas Ratio is a short hand risk rating, the lower the Texas Ratio the better.  Bank with Texas Ratios below 20% are considered to have a very low probability of issues within the next few years.

One additional item worth highlighting is that this list of high yielding banks all have relatively strong returns on equity.  The bank with the lowest return on equity is Northwest Savings Bank, a recent mutual conversion.

For investors with an appetite for dividends there is probably a stock or two in the above list that’d make a great addition to your portfolio.

Disclosure: No positions