Discussion in 'Stocks' started by Handsome, Feb 1, 2007.

  1. And have owned it for a long time and it recently hit a new 52 week high and then this earnings statement came out but I don't know from reading it if it is bullish or bearish.

    How do you read it. Is it bullish or bearish?

    I ask cause I am thinking about selling it after all these years and take the profit and be done with it.

    Suffolk Bancorp Announces Earnings for the Fourth Quarter and the Full Year of 2006

    RIVERHEAD, N.Y.--(BUSINESS WIRE)--Suffolk Bancorp (NASDAQ - SUBK) today released the results of its operations during the fourth quarter and full year of 2006. Earnings-per-share for the year were $2.20, an increase of 5.3 percent from $2.09 during 2005. Net income for the year was $22,628,000, up 2.4 percent from the same period last year. Earnings-per-share for the quarter were $0.55, a decrease of 1.8 percent from $0.56 during the comparable period of 2005. Net income for the quarter was $5,597,000, down 3.5 percent from the same quarter last year. A detailed financial summary follows the text of this release.

    President and Chief Executive Officer, Thomas S. Kohlmann, commented, "Return on average equity was 20.81 percent for the quarter, and 22.16 for the year. That compares to 9.73 percent for banks in the New York metropolitan area at September 30, 2006, the date of the most recently available information (source: SNL Securities). Return on average assets was 1.61 percent for both the quarter and year, again compared to 0.89 percent for the New York metro area. Our net interest margin was 5.23 percent and 5.16 percent, compared to 3.87 percent in greater New York. The quality of our assets is high, with net recoveries of 1/10th of a basis point for the quarter, and net charge-offs of 0.28 percent for the year even including the one significant charge-off in our recent past, now behind us as discussed in previous press releases. The Allowance for Loan Losses stands at more than nine times non-performing loans."
    He went on to say, "Nonetheless, it has been a challenging year for reasons we have previously discussed. The yield curve has remained stubbornly, persistently flat or inverted, causing the rates of interest on the assets in which banks typically invest and the monies which fund them to converge. We have been able to maintain our net interest margin by choosing our assets selectively with an eye to maintaining taxable-equivalent yield, and strict adherence to the 'marginal-cost-of-funds approach' to managing our funding. However, excess capacity in the industry and the resulting, unsustainable pricing for both assets and liabilities by our competitors, has made it difficult to grow for now. We are more concerned with the profitability of our enterprise in the long-term, and we do not want to encumber it with low-yielding assets or over-priced liabilities that will compromise our net interest margin when the yield curve finally rights itself, as it will, eventually and inevitably. Then we will be able to grow once again with a balance sheet of the quality our shareholders have come to expect. In the meantime, our objective is to maintain the standing of our business, including most importantly the relationships with customers that underlie any successful commercial banking company."

    Mr. Kohlmann concluded, "Boards of Directors and management of commercial banking companies deal completely in other people's money, whether that of customers, or that of the shareholders who own the business. At Suffolk Bancorp, we believe that every decision we make, whether strategic or tactical, has to be rooted firmly in our fiduciary duty to those constituents. We have always endeavored to make our stock one that investors consider a core holding in their portfolio, positioned to provide good returns over the longest term possible. We believe that we have the discipline to remain firmly focused on that objective, which is the foundation of ongoing shareholder value."

    Suffolk Bancorp is a one-bank holding company engaged in the commercial banking business through Suffolk County National Bank, a full service commercial bank headquartered in Riverhead, New York. Organized in 1890, Suffolk County National Bank has 27 offices in Suffolk County, New York.
  2. Print the chart out, take a ruler and draw lines connecting the bottom/top points. You will notice that it produces an upward sloping channel.

    Its been in this upward sloping channel since early 2005.
  3. In general I'm in a sell mood with most banks & especially the brokers Handsome. This report on Suffolk reads pretty good though. Every earnings report I read from the sector bitches about the yield curve. The BIG question is - could Suffolk be a buyout? If management is open to it- with no poison pills etc. I might hold.

    If you sell swap into UCBH.
  4. Thanks marketbarometer for explaining how to do that. I appreciate that.
  5. Thanks stoneinvestor. The main reason I have held it for so long is I keep thinking that eventually they will be bought out. They have been around a long, long time and are like the last of the truly independent banking concerns. From time to time, I check the insider sales at Yahoo and even though it is not that current, I seem to always see buying. I bank there of course and it is really a joy being that it is local and just about everyone there knows everyone else. At times, if I need something from them real quick, I just call and go down and get whatever I need..the advantages of a local banking relationship.

    But I have also noticed a few Federal Credit Unions recently advertising a lot and I would assume gaining some customers. But for right now, I think I will continue to hold as I don't have all that much stock and I do believe in time they will get an offer. The last local bank around here was North Fork with John Kanas and Capital One is taking them over :(

    Most of the insiders at Suffolk are local business people and I never hear of any of them selling so for now I think I will just sit tight...I just didn't know how to interpet that report I posted so thanks for your input on that.
    I appreciate that!