Ticker: EBTC, Buy below $25.
Enterprise Bank offers commercial and consumer loan and deposit products, investment management, trust, and insurance services.
Why I Would Buy
- Insider Holding – 18%+ of the shares are held by insiders.
- Dividend – 3%+ dividend, with a payout ratio < 30%.
- Cheap – Trailing P/E of 9, P/B of 0.9.
- Return on Equity: between 9 and 12+% returns on equity annually for most of last decade.
What Could Go Wrong
- Tiny Bank – Microcap, large exposure to commercial loans in a limited geographic area in Massachusetts.
- Coronavirus Impact – The extent of loan book that could become non-performing is unknown.
Disclosure: I am long EBTC, please read additional disclosures here before taking any action based on this post.