The market is undervaluing the potential increase in franchise value from PDLB participation in the ECIP program. Ponce will issue aprox. 185 million of perpetual preferred stock to Treasury and if they leverage is 4X which is why IMHO they did the second step and sold off their real estate ( a NOL carry forward sheltered the gain). If they are smart Steve and Carlos will max out this program get their stock options now at at a low price and put the for sale sign on the front lawn in 3 years.
Hi there. I should make clear that it is somewhat of my default position when I look at small banks. In my experience, many of these management teams run these banks like their own little fiefdoms. Now, as for evidence regarding to PDLB:
1) Maryland incorporated despite being a NY bank. I am not a securities lawyer, but it is my understanding Maryland leans more towards protecting management as opposed to shareholders. Ideally, you want to see incorporation in the state of operations or Delaware.
2) As I said in the post, the operating results don't signal to me a company that is accountable to shareholders. It's just my opinion there seems to be a degree of complacency by a classified board with long tenured directors who seem content to allow weak results to occur.
3) Yes, I deem that compensation simply too high for what you're getting in results.
The market is undervaluing the potential increase in franchise value from PDLB participation in the ECIP program. Ponce will issue aprox. 185 million of perpetual preferred stock to Treasury and if they leverage is 4X which is why IMHO they did the second step and sold off their real estate ( a NOL carry forward sheltered the gain). If they are smart Steve and Carlos will max out this program get their stock options now at at a low price and put the for sale sign on the front lawn in 3 years.
why do you think management and board is not very aligned with shareholders? Is that because of the CEO comp package?
Hi there. I should make clear that it is somewhat of my default position when I look at small banks. In my experience, many of these management teams run these banks like their own little fiefdoms. Now, as for evidence regarding to PDLB:
1) Maryland incorporated despite being a NY bank. I am not a securities lawyer, but it is my understanding Maryland leans more towards protecting management as opposed to shareholders. Ideally, you want to see incorporation in the state of operations or Delaware.
2) As I said in the post, the operating results don't signal to me a company that is accountable to shareholders. It's just my opinion there seems to be a degree of complacency by a classified board with long tenured directors who seem content to allow weak results to occur.
3) Yes, I deem that compensation simply too high for what you're getting in results.
appreciate it, was just wanting to get your views since you are experienced in thrifts. Thank you