Category Archives: Thrift conversions

Why I Continue to Like TFS Financial

Yes, TFS Financial (TFSL) has been a miserable performer over the last year, dropping from $19 per share to around $15 today. That’s following a run-up from $15 in the prior year or so, as investors priced in increased interest rates. But with three or four rate increases expected next year and coming off its most profitable year ever, TFS Financial still looks like a compelling buy. 

Three reasons I continue to like the bank:

  • Price to tangible book value is low
  • Buybacks continue at a high (but lowered) pace
  • Loan book is levered to higher interest rates 

Continue reading Why I Continue to Like TFS Financial

New article on TFS Financial at Seeking Alpha

I’ve just added a new article on TFS Financial at Seeking Alpha. The piece is entitled “TFS Financial – A Misunderstood Bank Cheaper Than It Appears.” I note in the article:

TFS Financial (TFSL) is a misunderstood bank trading at 9 times this year’s earnings even as interest rates are poised to rise. Its management team has been buying back stock aggressively for years using a huge pool of excess capital, its loan delinquencies are miniscule, and it’s paying a 4.5% forward dividend yield.

TFS Financial’s stock has been flat for a while now, and I think it offers an excellent reward for the risk at today’s price. Click over to SeekingAlpha to read the whole article and why the stock could be poised for further gains.

Thrift conversions are here!

I’ve completed my initial list of thrift conversions, which is sortable by IPO date, market cap, return on equity, price to tangible book value, ticker, and equity/assets.

The list provides some of the most relevant details in beginning research on the most interesting thrift conversions. In some cases, notably where the company is partially owned by a mutual holding company, I have not provided an adjusted market cap and price to tangible book value. Usually these stocks appear to trade at a substantial elevation above tangible book, and a quick look into the company will reveal this fact.

I’ve included thrift conversions of the last five years and a few others. As a general rule, the most interesting conversions are those in the last year or two, because they’re unknown and often remain relatively cheap. How cheap? It’s not too difficult — even in this rabid bull market — to find a very overcapitalized bank trading substantially below book.

Check it out here: