Corner of Berkshire & Fairfax Message Board

General Category => Investment Ideas => Topic started by: mjohn707 on January 25, 2017, 07:41:29 AM

Title: BTHT – Best Hometown Bancorp
Post by: mjohn707 on January 25, 2017, 07:41:29 AM
Best Hometown is a bank holding company with a main office in Collinsville, IL and a branch in Maryville, IL.  Both locations are situated in the rural eastern edge of the St. Louis metropolitan area, referred to as “Metro-East,” which is relatively less populated and more industrial.  U.S. Steel, American Steel Foundry, and the Scott Air Force Base are among the largest local employers.

The bank was organized in 1887 and converted from mutual form in 2016 when it issued 826,208 shares at a price of $10 per share, raising a total of 6.9M after expenses.  The directors and executives of the company purchased 64,000 of the newly issued shares, about 8% of the total.  The bank has has 108M in total assets, but is well capitalized with 12.8M in tangible equity as of 9/30/16, and they rank 13th of 26th in their deposit market with a 1.6% share. 

At the recent price of $11.20, shares trade for 67% of book value.  They are modestly unprofitable, although recent changes in management policies including the introduction of ATM machines and debit cards and a new emphasis on commercial lending seem promising.  The loan book is clean with NPL to total loans of just 0.13% as of 9/30/16.

Shares trade over the counter and are very illiquid.  I believe the bank is worth around book value, and makes sense as an investment using a “basket” approach with similar banks.

Current Price:     $11.20
Market Cap:  8.5M
P/E:  N/A
P/B:  .67
Title: Re: BTHT – Best Hometown Bancorp
Post by: mjohn707 on February 15, 2017, 04:25:00 PM
This has moved up about 25% over the last few days, looks like Joseph Stilwell filed a schedule 13G reporting a 9.6% position.  My understanding is that Joseph Stilwell/Stilwell Value is an activist investor in the community bank world
Title: Re: BTHT – Best Hometown Bancorp
Post by: mjohn707 on October 09, 2019, 11:46:57 AM
It looks like we have a sale for $14.89 per share, a 33% return over this period where the S&P returned something like 39%.  Those are the breaks I suppose