Total assets of $15.5bn of which $2.4bn are to commercial real estate and $6.3bn are home equity loans. Of these $2.3bn are junior lien mortgages.
In addition to its exposure to a slowed housing market, it has the added bonus of exposure to a weak Michigan economy.
The bank has a weak capital structure with a low level of Tier 1 capital.
With total equity of $1.0bn and a market cap of $1.9bn this is one overvalued bank which should be trading closer to its book value of $11.30 rather than $15.00.
$14.99 (06/11/08)
