This holding stock is a Business Management teaching case of how finance and marketing can blend for commercial success. The stock is a nearly ideal choice for every investor searching for hidden value in the troubled Financial Sector.
The operating bank owned by this stock has used Services Management principles to distinguish itself from the generic banking business. It provides custom products for important clients. The management has enhanced the corporate brand by offering substantive consultation services with the funds it deposits and loans.
The business model is most appropriate for the small and medium business communities in the tightly defined operational area of the bank. The company does not ignore the consumer finance segment either, with comprehensive products for individual banking needs.
Net income has grown by 5% during the Most Recent Quarter, which is a business achievement for investors to appreciate in the midst of the difficult economic environment of the last quarter of 2007. The management has increased loans by a hefty 15% during this period, laying the foundations for accelerated profit growth. Significantly, 70% of the bank’s loans involve real estate, including commercial properties. Such assets have best long-term appreciation potentials compared to their early 2008 valuations.
The merger with Fidelity & Trust Bank is to be welcomed by stock owners on both sides. Other successful members of the Regional Banks industry can learn from this move, and perhaps join in it as well. Investors will be encouraged to note that this bank has a Net profit Margin of 19.98 over the last four quarters, which is better than achieved by the Regional Banks industry as a whole.
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