Banks on my Mind: Citizens Republic Bancorp

by PlanMaestro

Don’t you just love it when someone else does your homework? Cale Smith is the open man and has been doing a fantastic job analyzing Citizens Republic – CRBC. He even has a Excel model for those of you that like Excel models: not me but I like data. So it might be better to just pass the ball and  start blocking with some supporting analysis over the next weeks.

CRBC was mentioned in passing a couple of times including one with other financials for January effect picks. I remember that one of those picks was an aggressive one: TSFG, a bank that might be better for a what not do while investing in banking.  Luckily, it seems that Cale and I decided that a more conservative bank was better for a first pick in a troubled sector.

To complement, you might want to check CRBC’s results reported this afternoon. A very solid performance with NPAs, NPLs, delinquencies, provisions, charge-offs, watchlist loans all down. Despite the small loss, all capital ratios and the loan loss reserve were way up … and the disclosure was excellent.

Annual pre-tax pre-provision earnings of $131 million and $613 million of tangible common equity for a $317 million market capitalization?

Cale mentioned he will next tackle the Michigan economy – do not ignore the economy while investing in banking – and if he convinces us that things are improving I might add a second pick in the region.