Thank you for your very nice articles. You are probably aware of this already but, if not, here is a good link for looking up the Holding Company reports for banks, which are issued for the 6 months ending June 30 and Dec 31 of each year. This better aligns with what the company will report for its shareholders. As you mention, there are usually more liabilities (debt) and expenses and the holding company compared to the bank, and therefore earnings will be less than expected from the call report alone. https://www.ffiec.gov/NPW
Oh wow, bingo! Thanks for reading and especially for the link, I was not aware of it! Doing a quick check on the equity looks like it checks out with the SEC 2Q21 report. Very helpful, really appreciate it!
Firstly, are you sure that the dates for each of your set of figures are identical? Just a quarter difference could account for the discrepancy.
Also, since this is a cash deal, there's very little reason to wait 5 or 6 months for your cash if you are a stockholder. The extra 3% that you would get by holding until the closing can likely be dwarfed by investing elsewhere.
Pretty sure, you can see the period dates are listed on both images. Based on some feedback from other readers, it sounds like the cause is one of two things. Either the bank holding company has assets/liabilities at its entity level that are not at the subsidiary bank and/or reporting requirements are slightly different for regulatory and GAAP filings.
I agree on your second point. The risk/time required hardly justifies the reward from this current price. My timeframes were mostly for illustrative purposes and to be conservative when calculating the returns.
Thank you for your very nice articles. You are probably aware of this already but, if not, here is a good link for looking up the Holding Company reports for banks, which are issued for the 6 months ending June 30 and Dec 31 of each year. This better aligns with what the company will report for its shareholders. As you mention, there are usually more liabilities (debt) and expenses and the holding company compared to the bank, and therefore earnings will be less than expected from the call report alone. https://www.ffiec.gov/NPW
Oh wow, bingo! Thanks for reading and especially for the link, I was not aware of it! Doing a quick check on the equity looks like it checks out with the SEC 2Q21 report. Very helpful, really appreciate it!
Firstly, are you sure that the dates for each of your set of figures are identical? Just a quarter difference could account for the discrepancy.
Also, since this is a cash deal, there's very little reason to wait 5 or 6 months for your cash if you are a stockholder. The extra 3% that you would get by holding until the closing can likely be dwarfed by investing elsewhere.
Pretty sure, you can see the period dates are listed on both images. Based on some feedback from other readers, it sounds like the cause is one of two things. Either the bank holding company has assets/liabilities at its entity level that are not at the subsidiary bank and/or reporting requirements are slightly different for regulatory and GAAP filings.
I agree on your second point. The risk/time required hardly justifies the reward from this current price. My timeframes were mostly for illustrative purposes and to be conservative when calculating the returns.