A housekeeping note: I know articles have been sparse recently, but I’ve been working on several complicated situations and longer articles that will be up soon. Unfortunately, one of the situations (a finance company with a convoluted balance sheet reminiscent of Gramercy a few years ago) was posted on VIC and ran up before I could get a full position, so that article will be delayed a while. But the others will be up soon!
In the meantime, I’ve been dipping my toes into buying smaller community banks trading well under book value recently. Historically, it’s an area I’ve avoided, but it’s one of the few places where I’m still seeing a good combination of downside protection + catalyst for upside. I wanted to pass along this presentation, as I thought it had some great points for thinking about take outs of smaller banks.