Bank Buzz: 2 Value Plays With Near-Term Catalysts
FSEA
Seeking AlphaDecember 12, 2023
Our strategy is to invest in banks trading below TBV with overcapitalized balance sheets, solid asset quality, and shareholder-friendly management teams. This combination typically leads to two catalysts, first accretive share repurchases and ultimately a sale to a larger institution. Trading at less than 60% of TBV, we theorize that FSEA will begin an accretive stock buyback program in 1Q24.