VALUE: After Hours (S07 E42): Best Small Community Bank Investments Right Now

During their recent episode, Taylor, Carlisle, and Tim Melvin discussed Best Small Community Bank Investments Right Now. Here’s an excerpt from the episode:

Something about Americans, we love that FDIC insurance, especially small depositors that really don’t maybe not understand the banking system and how it all works. They like the feeling that the government’s going to back them up if things go wrong, and punish the bad guys. I think if you meet them digitally, they’ll stay with you. However, if you cannot meet them digitally, you do have a problem, and that’s actively driving M&A. You’ll also see the usage of AI continuing playing a big role in this going forward, too. But let’s do some names now.

Guys, the names I’m about to give you are small banks, okay? If you use a limit order on any of the banks, I’m about to tell you about, your major contribution to the day will be buying lunch for a trading desk at a small brokerage firm [Tobias laughs] somewhere in the Midwest of America. It’s going to be the best lunch they’ve had all year. So, one of my favorites, and this is a former converted thrift, Toby. It’s the North Shore Trust & Savings Bank. It’s now called NSTS Bancorp. The symbol is NSTS. It’s a really small bank. It does not trade a lot on a day-to-day basis, guys. So, please be smart, use a limit order.

But in a world where a 10 is a high equity to asset ratio, they have a 29, it trades at 70% of tangible book value. Just a super cheap, small branch, northern Chicago suburbs, former thrift, trades by appointment from time to time. But you would have to work so hard to lose money in that bank. It’s crazy.

Two days ago, I would have given you Blue Foundry Bank, but they got bought out. [chuckles] RBB Bancorp out in LA, they are Korean bank. They do business with the Korean-American community. Trading at 77% of book value, a 3% dividend, and a 12 equity to asset ratio.

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