A Case of Gray Hairs Proving Their Worth in 123 Bank Branches
I wonder how this little gem of a bank has gone so long undiscovered by investors? Only two institutions own shares in Carter Bank & Trust (and less than 1/2 of 1% at that). And no brokerage firm appears to have written anything about it, despite six fine years of earnings when the rest of the industry was mired in the Great Recession. Trading at only 62% of book value and 6.8 times earnings, CARE clearly offers investors a Worthy opportunity.
Disclosure: As of this posting, I own significant shares of CARE and may subsequently either dispose of them or purchase more.
CARE would present an easy in-market transaction for any of the following acquisition-hungry banks:
BB&T Corporation, Winston-Salem, NC (BBT)
First Citizens BancShares, Raleigh, NC (FCNCA)
Sun Trust Banks, Atlanta, GA (STI)
(as of 3/31/2012)
Worth Harris Carter, Jr., Founder, Chairman, and President
Jane Davis, Senior VP and CFO
Combined with Carter Bank & Trust's low price to book value and low price to earnings, five Key Performance Indicators (KPIs) give me tremendous confidence in the bank's ability to deliver outsized returns for investors:
Mr. Carter, at 74, has built a bank worthy of his name, and shows no signs of slowing down. Clearly many of nation's bankers could learn a thing or two from these graybeards.