, chief investment officer of insurance company Markel Corp., has
shed 1.72 percent of his holding of Union First Market Bankshares
) by selling 60,222 shares in the first week of November,
GuruFocus Real Time Picks
reports. At an average price of close to $15.50 per share, the
transaction was worth approximately $933 million in total.
Gayner, a value investor with a market-beating long-term track
record, keeps his core formula for stock selection simple.
"In our equity portfolio, we continued to follow our historical
and unchanging four-point discipline of seeking profitable
businesses with good returns on capital, led by honest and
talented managers, with reinvestment opportunities and capital
discipline, at fair prices," he said in his 2011 letter.
He remains 10 percent owner of Union First Market Bankshares, a
company whose stock price appreciated almost 21% over the past
year and whose current stock price of $15.52 represents an 18.5%
gain on his average purchase price in the first quarter of 2010
when he first invested in the company.
Gayner mentioned in a January interview with GuruFocus that the
investment is a "legacy of a private investment that we did here
with a family here in Richmond, a privately owned bank which
merged into a public bank" and called it a "good, solid
His other bank investments are few and include Bank of New York
) and State Street Bank (
), which he defined as "service businesses as much as they are
Union First Market Bankshares is the holding company for
Virginia's largest community bank, Union First Market Bank, and
several other non-bank financial affiliates.
Union First Market Bankshares' net income for its third quarter
ended Sept. 30 grew 14.5% sequentially and 6% year over year to
$9.6 billion. Earnings per share grew 15.6% sequentially and
12.1% year over year to $0.37. The growth came as the bank saw
increased mortgage loan sales resulting from higher loan
production volume and increased net interest income.
Third quarter ROE also increased to $8.7% and ROA increased to
0.96% from 8.02% and 0.93% respectively, for the prior-year
quarter. Non-performing assets as a percentage of total
outstanding loans fell to 2.29% from 2.6% the previous quarter
and 3.07% the prior-year quarter.
Union First Market Bankshares' valuation has grown as well: The
stock's price at $15.34 is close to its two-year high, P/B ratio
at 0.92 is close to its two-year high and P/S ratio at 1.7 is
close to its three-year high.
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