A $30 Million Bank Trading at 74 Cents on the Dollar
Micro-Cap Deep Dive #1
It’s trading at a 26% discount to book value. In fact, you are buying a dollar of equity for 74 cents. It is a $30 million nano-cap. The balance sheet is solid and earnings are growing.
Price/Book Ratio = 0.74x.
P/E Ratio (TTM) = 7.5x
3.7% dividend yield.
Total assets sit at $345.7 million. While the bank slightly shrank overall, the loan book increased to $275.5 million, and deposits rose to $280.7 million. Crucially, they lowered their interest expense, meaning they paid less to fund the bank than they did last year. With total equity hitting $40.7 million, the book value is now $40.64 per share. Directors have over $27 million of their own cash sitting in the bank’s deposits.
