– Community bank at 1.07x TBV and 6.4x PE. Cheaper than peers.
– The market was recently disrupted by a wave of M&A of other community banks.
– Branch-lite bank.
– Focuses on specialty niches – deposits from municipalities, SBA program, PPPl lending and etc.
– TBV CAGR of 10%.
– Loan-to-value of the mortgage portfolio stands at 55%.
– 1.07x TBV compares favorably to peers at 1.29x.
– Earnings multiple of 6.4x ’22e compares to peers at 9.2x.
– ROA of 1.3% and ROTCE of 14% match peers.
Exp. gain: +20% to $25/share.
Full $HNVR write-up (free guest account required):