Thursday, August 15, 2013

N.C. bank stocks gaining in value

Just a year ago, North Carolina banks were trading only about half of their tangible book value. It's now up near 90 percent, according to an analysis by Banks Street Partners.

It's one of the more impressive gains in the Southeast, the investment bank found, though values rose in each state in the region. The percentage represents a median. The average price to tangible book value was 103 percent, skewed by a couple outliers.

CommunityOne Bancorp, at 275 percent, is trading at the highest compared to its tangible book value. Company executives pledge a return to profitability next quarter. BB&T came in second, at 210 percent, though its financial picture is much brighter.

WELLS SPONSORING MEXICAN NATIONAL TEAM: Wells Fargo says the sponsorship will last through 2016. The first game as sponosor came last night when the Mexicans defeated Ivory Coast 4-1 in New Jersey. Wells Fargo announced a sponsorship of Major League Soccer a few weeks ago.

BOVE SAYS BANK OF AMERICA WILL RALLY 100%: Rafferty Capital analyst Dick Bove is always bullish on bank stocks, but he made a bold prediction for Bank of America's stock this week. He said its price will grow 100 percent in the next one to two years, as reported by CNBC. That type of growth isn't unheard of at the Charlotte bank -- it grew by more than that in 2012. That happened, though, after the bank's shares were at $5. They're now close to $15. Bove made a similar prediction for Citigroup.

LIVE OAK GETS APPROVAL FOR PURCHASE: The Wilmington-based Live Oak Bancshares got Federal Reserve approval Wednesday for its acquisition of Government Loan Solutions Inc. The Cleveland, Ohio, company analyzes government-backed loans packaged into securities. Live Oak has gotten heavy into SBA loans in particular in recent months.

****This is a preview of The Charlotte Observer's Bank Watch Morning Report, bringing you banking news from the region, the top financial headlines, and the news driving activity in the Charlotte market.****

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