A Case of a Safe Port for Bank Stock Investors
A company with this great a record ought to be trading at a premium to book value. Although there are literally hundreds of banks like this trading far below what they are worth, Logansport Financial is one of my favorites. All signs point to LOGN's book value being over $30 next year. If it trades down the road at 120% of book like I anticipate, investors will own a $36 stock, 80% higher than where LOGN trades now. In the meantime, shareholders can sleep at night, earning a decent 2.7% dividend.
Disclosure: As of this posting, I own shares of LOGN and may subsequently either dispose of them or purchase more.
PNC Financial Services, Pittsburgh, PA (PNC) - unlikely to be interested in acquiring a property as small as LOGN.
Salin Bancshares, Indianapolis, IN (privately held) - has been rapidly expanding throughout Indiana and might find LOGN an attractive candidate for acquisition.
Security Federal Savings Bank, Logansport, IN (privately held) - a Mutual Savings Bank that does not have stock with which to acquire another institution. Should Security decide to go public, buying LOGN could make sense.
(as of 12/31/2012)
David Wihebrink, Chairman and former CEO
Arden Cramer, President and CEO
Chad Higgins, Treasurer, Secretary, and CFO
Logansport Financial's Management team has been doing everything right for decades.
The have a stellar REPUTATION in the industry for being top-notch bankers.
They have produced remarkable RESULTS compared to their peers: