Today there's another video. Click the link, and view my next set of thoughts regarding the Investor Presentation regarding the new stock offering.
I apologize ahead of time for the quality of the video. In the few pages of the investor presentation I look at, it's not very interesting. They take some so – so results and make them seem like things are going to be fine.
Toward the end of the video, the presentation starts to talk about the loan portfolio. The main takeaway, in my opinion is that CLD type loans (Construction and Land Development) have been reduced from 15.7% of the loan portfolio in early 2007 to 7.3% currently. This is a reduction from about $94 M to around $44 M. As I've stated several times before here, that $50M reduction was almost all loan loss expense, and is the reason the bank has the capital issues it currently has.
The other interesting fact is that apparently (on page 21 of the presentation) the construction and land development loans are principally located in the Ann Arbor/Washtenaw market. This is ambiguous because the reader can't tell if the current composition of the CLD loan portfolio is weighted toward Washtenaw county, or if it has always (even when it was 15% of the entire loan portfolio) primarily weighted toward Washtenaw County. This is important because if it was always (back in 2007 and currently) weighted toward Washtenaw county, then $50M was lost in Washtenaw County, and yet there is a big push to increase business in Washtenaw County.
This video kinda plods along, I'll try to make the next one shorter, better prepared and more focused. Nevertheless, I hope you enjoy it and get something out of it. Feel free to comment.
Click the link to watch the video: Investor Analysis Video #2