I liked your initial writeup and the situation seems to be developing quite well with repurchases and good loan performance. The one think that makes me a bit less enthusiastic is the fact that the CEO is around 60 and gets over 400k in salary. If I were him, I'd wait a few years before selling the company - more salaries collected, bigger bonuses (and his severance is based on the highest bonus paid l3Y), closer to retirement. This obiously lowers potential ROI for equity owners.
Can’t say I disagree with your concern. The only thing I’d point out is Ed hasn’t been afraid to move on from a bank before. If he sold he could potentially repeat the process at another bank. I’d like to think if the acquisition window opens and he sees a strong offer he’ll take it, but you never know until it actually happens.
I liked your initial writeup and the situation seems to be developing quite well with repurchases and good loan performance. The one think that makes me a bit less enthusiastic is the fact that the CEO is around 60 and gets over 400k in salary. If I were him, I'd wait a few years before selling the company - more salaries collected, bigger bonuses (and his severance is based on the highest bonus paid l3Y), closer to retirement. This obiously lowers potential ROI for equity owners.
Can’t say I disagree with your concern. The only thing I’d point out is Ed hasn’t been afraid to move on from a bank before. If he sold he could potentially repeat the process at another bank. I’d like to think if the acquisition window opens and he sees a strong offer he’ll take it, but you never know until it actually happens.