Investors will be pleased to find a bank with solid business results to report for 2007. Interestingly, this is the case of a highly localized financial institution that has operated in a depressed economic climate, and under an interest rate regime that is inherently unfavorable for operating margins. Yet this local bank from a relatively small part of the United States has fared much better than celebrity management teams of its larger and international peers!
This bank’s stocks are also interesting because of the systematic business expansion plan underway under management direction. Better branch business ambience, innovations such as drive-in facilities, and alliances to help economically vulnerable customers find affordable cars, are telling examples of how this bank’s management has combined clear social relevance with excellent strategy execution capabilities. The bank’s primary business position that all its deposits are reinvested in its local area communities seems to have won widespread support and respect.
Investors can take special reassurances from the fact that all questionable loans of the bank have been held firmly at less than a third of one percent of all advances. This achievement proves that the business of a financial institution need not involve the sub-prime category of national woes. The hard work done by the management during times of relatively adversity will stand the business in good stead, as the economy responds to stimuli, and grows. Here is a stock investment opportunity that can serve as a model for all community financial services.
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