With the increase in insider buying within the American
regional banking sector, I decided to look into the same sector
in the Toronto Stock Exchange (
). Using the
All-in-One Guru Screener
, I looked for banking companies that matched the following
1. Reported 2+ insider buys in 2013
2. Maintained equity to asset ratio of around 10 to 15%.
3. Reported a low percentage of nonperforming assets
4. Has a P/B Ratio > 0.6
5. Trades at a price above $1
Using this criterion, I found a total of
13 American companies
and none for Canada. When I removed all of the criteria, minus
the insider transactions, it resulted in only 2 Canadian banks
that offered insider transactions in the past five months. The
following five companies most similarly matched my initial
criteria and reported the largest insider buys in terms of cost
American Regional Banking Companies
First Security Group (
On April 11, FSGI reported 11 insider buys as the company
reported a "strategic recapitalization" program. These insiders
bought a total of 557,908 shares for $1.50 per share. The total
combined transaction amount for these insiders was $836,862.
Guru Michael Price also bought shares during the
recapitalization. He added a total of 6,080,000 shares.
Since this buy the price of FSGI has increased 255.33%. The price
is currently sitting at a 2-year high.
First Service Group is the holding company for FSGBank which
serves areas of Tennessee and Georgia.
The company has a very low P/B Ratio of 0.3.
FSGI's nonperforming assets make up 3.6% of the company's total
assets. The bank has a very low equity to asset ratio of 2.62%,
but due to the recent growth of the company-I chose to keep in
First Security announced a recapitalization program in the
beginning of April, in order to jump start and reverse the past
five years of revenue decline. On April 11, the company issued
9.9 million shares of its common stock to the U.S. Treasury. The
Treasury then sold those shares to previously named investors of
the company for $1.50 per share. First Security sold an
additional 50.8 million shares at $1.50. In total investors
purchased 60.735 million shares for $91.1 million.
With its shares
31.49% today, FSGI trades at $6.89.
Community Bank Shares of Indiana (
In 2013, Community Bank Shares of Indiana has reported a total of
7 insider buys coming from three different insiders. These
executives have bought a total of 22,359 shares at an average
price of $16.07 per share. The total transaction amount for these
purchases is $358,460.
The GuruFocus analysis shows that Community Bank's price is
nearing the 3-year high it hit earlier this year. It also
demonstrates that the per share revenue has been in decline for
the past year.
On April 18, the Board reported a 10% increase in cash dividends
per share to $0.11. The net income available to common
shareholders was $1.7 million, a 4.2% increase from the same
Community Bank Shares of Indiana is a bank holding company for
community banks, Your Community Bank and The Scott County State
Bank. The company offers deposit services as well as small
business loans. The banks currently have a "strategic alliance"
with Wells Fargo (
Community Bank's P/B Ratio is at 0.6.
The company's nonperforming assets currently make up 3.03% of its
total assets. The equity to asset ratio is at 10.5%.
There are currently no gurus that hold stake in CBIN.
Community Bank Shares of Indiana currently trades at $15.82.
LNB Bancorp (
LNB Bancorp has reported a total of 8 insider buys coming from 4
different insiders this year. These insiders made two separate
cluster buys. In total the insiders bought 3,234 shares which
cost them a cumulative $22,982. The first set of buys traded at
an average price of $6.20 and the second set of buys cost $8.33
Since the first set of buys the price has increased 38.32%. The
price of LNBB is currently sitting at a 3-year high.
LNB Bancorp is the holding company for Lorain National Bank. The
company owns 20 banking offices and 30 ATMs throughout Ohio.
Guru Arnold Schneider holds 25,869 shares and Jim Simons holds
17,400 shares of LNBB. To see all of the guru trades at LNB,
The GuruFocus analysis of LNB shows that the company's revenue
has been in decline for the past three years. The company has
also issued $4.5 million of debt in the last three years, but it
keeps enough cash on hand to cover all debts.
LNB Bancorp's P/B Ratio is at 0.6.
The company has paid a $0.01 cash dividend to its common
stockholders since 2010.
LNB Bancorp has an equity to asset ratio of 9.65%. The company's
nonperforming assets make up 2.48% of its total assets.
With its shares up 0.08%, LNB Bancorp trades at $8.58.
Canadian Banking Companies
National Bank of Canada (TSX:NA)
National Bank of Canada has reported a total of 15 insider buys
coming from 14 different insiders so far this year. These
insiders have purchased a total of 2,872 shares at an average
price of $75.70 per share. The total transaction amount for these
insiders is $220,549.
The company's insider buys come as the price of National Bank of
Canada is nearing a 10-year high.
According to the GuruFocus analysis of National Bank, the
company's dividend is close to a 3-year high. The P/E and P/S
ratios are close to 3-year lows of 7.85 and 2.1 respectively. The
operating margin of the company is expanding, resulting in
consistent per share revenue and earnings growth.
The financials of the company show that it has issued $3.9
billion of debt in the past three years.
The company's P/B ratio is at 1.7.
In their most recent quarterly results ending Jan. 31, 2013, the
company reported a net income of $361 million compared to $353
million in the same quarter of 2012. The company also reported a
fully diluted EPS of $2.02 for Q1 of 2013 compared to $2.00 in
The company offers an equity to asset ratio of 11.71% as of Jan.
31, 2013. The company's nonperforming assets make up 3.53% of the
company's total assets.
National Bank of Canada provides financial services to consumers
and small and medium-sized enterprises throughout Canada. The
bank also has subsidiaries and alliances in the U.S. and Germany.
The Tweedy Browne Global Value and Leith Wheeler Canadian Equity
both hold shares in National Bank of Canada. To see the stake
these gurus hold, click here.
With its shares up 0.29%, TSX:NA trades at $75.29.
Pacific & Western Credit Corp (
Since February, three insiders have made ten buys into Pacific
and Western Bank of Canada. These insiders added a total of
52,600 shares at an average price of $1.32 per share. These
insiders spent a total of $68,331 on these transactions.
All of these buys came as the price of Pacific and Western hit an
extended low in price.
The analysis on Pacific and Western shows that the company has
been in an operating loss over the past three years. The company
has also issued $29.202 million of debt in the past three years.
Pacific & Western Credit Corp is the holding company for
Pacific & Western Bank of Canada. The bank deals primarily
with deposit services and lending services for the individual or
Pacific & Western has a P/B ratio of 2.3.
The company recently released a statement reporting that it had
purchased an additional $30 million of its bank's common equity.
This increased the bank's common equity tier one (CET1) to
The company's equity to asset ratio was 6.17% as of Dec. 31,
2012. Pacific & Western's nonperforming assets made up 1.7%
of the company's total assets.
There are currently no gurus with stake in Pacific & Western.
The company currently trades at $1.40.
While the regional banking industry in America is trading at
relatively high prices, the Canadian banking industry has
reported these insider buys as their share prices have gone down
to 52-week lows. To view more banking companies in America and
Canada reporting insider trades within the past week, click
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