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Banks trading at the lowest price-to-adjusted TBV in July

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Banks trading at the lowest price-to-adjusted TBV in July

Three companies joined S&P Global Market Intelligence's list of public banks and thrifts with the lowest price-to-adjusted tangible book value ratios this month — Township of Washington, N.J.-based Oritani Financial Corp., Westfield, Mass.-based Western New England Bancorp and Lafayette, La.-based MidSouth Bancorp Inc.

MidSouth Bancorp entered the list at No. 14 after its stock fell by 4.3% in July and the bank completed a $61.2 million common stock offering, sending its adjusted tangible book value per share sliding. At the end of July, MidSouth had a P/ATBV ratio of 128.0%, compared to 205.5% as of S&P Global Market Intelligence's previous report.

To compile this ranking, S&P Global Market Intelligence analyzed operating U.S. banks and thrifts with more than $1 billion in assets that trade on the Nasdaq, NYSE or NYSE MKT exchanges. Public mutual holding companies as well as holding companies with failed banking units were excluded from the analysis. Adjusted tangible book value is calculated as the sum of tangible common equity and loan loss reserves less nonperforming assets and loans 90 days past due but still accruing interest over common shares outstanding.

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Seattle-based HomeStreet Inc. fell to the 6th position on the list from 16th last month after its P/ATBV ratio fell to 117.0% as of July 31 from 130.9% as of July 3, following a 7.1% drop in its stock price. On July 24, the bank reported a net income of 41 cents per share for the second quarter, down from 87 cents per share a year ago.

On the other hand, Fishers, Ind.-based First Internet Bancorp jumped to No. 20 on the list from No. 7 last month after its stock rose 15.2% between July 3 and July 31. The bank reported earnings per share of 61 cents for the second quarter, up from 43 cents per share in the linked quarter and 57 cents per share in the year-ago quarter.

Norwood, Mass.-based Blue Hills Bancorp Inc. passed its three-year anniversary as a fully converted former mutual bank, making it eligible to be acquired by another institution. The bank's stock was up 5.9% in July.

In addition, three banks exited the list this month: Shippensburg, Pa.-based Orrstown Financial Services Inc., Wyomissing, Pa.-based Customers Bancorp Inc. and Burr Ridge, Ill.-based BankFinancial Corp.

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Click here to see S&P Global Market Intelligence's calculations for price-to-adjusted tangible book value.

Click here for a template that provides pricing trends and profitability ratios for financial institutions.