Here are some refreshing banking business results for 2007! The management has performed so well during a difficult year that it is worth making the effort to understand how the business operates. Careful and consistent segmentation distinguishes the stock from its industry peers. The bank has consciously stayed away from family mortgages, and has focused sharply on small business and private equity instead.
Management style and choices reflect strategy without distortions. Expert counsel is available for clients. The bank has invested in information systems which meet the needs of busy business people well. Conservatism, which is so integral to sustained banking success, is a guiding principle for this management. It has increased provisions for bad loans even though it has no subprime transactions. The stock is therefore as appealing for investors, as the bank is for small business owners, and for individuals looking for professional financial services.
The bank’s assets have crossed $144 million by the end of 2007. This is an impressive growth by more than a third of the figure for December 31 2006. Deposits have jumped annually by 25% and net loans by 41%. Interest income has grown annually by 33% during the most recent quarter. These business achievements are very impressive considering the difficult environment of 2007.
The management is confident of meeting internal budget parameters. Investors can look forward to continued business and profit expansion during the rest of 2008. This is clearly a model from which all troubled financial institutions in the United States can learn!
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