Portfolio manager Cale Smith’s riffs on investing, spoke funds, and Islamorada in the Florida Keys.

As per my last post, this series is written primarily for my investors.

For the analysts and PMs in the crowd, however, here is a link to my spreadsheet containing various analyses and valuation hacks at CRBC. I think this will go without saying, but in case it does not: that spreadsheet is neither comprehensive nor authoritative. For instance, you’ll note it doesn’t contain much of what a proper bank analysis should (i.e. tangible common equity calcs, book value per share estimates, Texas ratio, etc. ) because, well, those things don’t require a spreadsheet. Evernote is great to store those notes, though.

So the invisible assumption behind my spreadsheet is that the bank has already passed some key initial screens. If you begin analyzing other banks by starting to plug your own numbers into this, and ignore those initial screens, it will probably not end well. And if you’re looking for a great resource on how to quickly recognize viable banks as potential investments these days, I highly recommend Plan Maestro’s blog Variant Perceptions. Plan put CRBC on my watch list back in December. Also, the Above Average Odds blog recently featured an excellent write-up on a bank that should be a great reference for more experienced investors.

In any case, my goals in that spreadsheet were a bit more wide-ranging – everything from gauging when the bank would be profitable again to trying to reverse-engineer certain sell-side assumptions to ballparking core earnings power if, magically, all provisioning went away. That file is also an amalgamation of several different spreadsheets, and I broke the links off in this version so parts could be clunky.

In any case – all of this means:

I think that spreadsheet will be helpful to others, but use it at your own risk.

Cool?

Next up: two critical things to understand about regional banks, plus one other tip for potential bank investors.

This site and the above are for educational and informational purposes only. Nothing contained here should be construed by anyone as an invitation or solicitation to buy or sell any security. This site does not contain personalized legal, tax, investment, or financial advice. Users of this site should consult with a qualified adviser to obtain advice suited to their personal circumstances. Any links provided here to other web sites are for informational purposes only.

As per my latest letter to Tarpon Folio investors, I’m going to be posting more about my rationale for buying shares in Citizens Republic Bancorp, or CRBC, here on the blog over the coming days.

First, though, a handful of points:

1. Discussing CRBC here is certainly akin to “talking my book.” So be it. However, to be clear, nothing in this series should in any way be confused with a formal recommendation of any sort. I enjoy educating my investors about the companies we own. Fortunately, they seem to appreciate it, too. These posts are intended for them.

2. In most of my communications with my investors I try to explain my rationale using as little jargon as possible. I feel like anything else comes across as annoying or arrogant. Unfortunately, there is no way to talk about banks without sounding like an alien. So, I will apologize in advance if parts of this series make anyone’s eyes glaze over.

3. If you’re considering investing in CRBC, please do your own homework. I don’t intend to publicly notify anyone when I sell our shares, nor why. I also originally started buying shares in CRBC at prices not insignificantly higher than where they are now. Should the price continue to drop, then all things being equal, I would continue to buy. However, I have the luxury of being able to average down very efficiently. You may not. I also am willing to endure short-term discomfort in order to realize a long-term gain – whether we’re talking about investing, teeth cleanings or rooting for the Dolphins. Again, your circumstances may differ.

Next up – I’ll throw a bone to the stock jockeys, point out a couple more things to be wary of as a bank investor, and then get more into Citizens Republic.

This site and the above are for educational and informational purposes only. Nothing contained here should be construed by anyone as an invitation or solicitation to buy or sell any security. This site does not contain personalized legal, tax, investment, or financial advice. Users of this site should consult with a qualified adviser to obtain advice suited to their personal circumstances. Any links provided here to other web sites are for informational purposes only.

Well, this would have saved me about 4,000 words. Here’s Buffett on how the economy is recovering. Sort of like I wrote here, although in about 95% fewer words…and backed by the credibility of a $50 billion net worth.

Click on the pic to view the video on the original site.

H/t Rational Walk.