Description

MFB is a bank holding company with 7 branches located in Mishawaka, IN.
They have only 1.35 million shares outstanding with the float at only 800,000 shares as management owns a large percentage. They have a $24+ book value and own all their branch locations. They pay a 2% cash dividend and have great asset quality, very important in today's market. Non-performing loans were at less than 0.10%, until a small problem loan announced over the past month caused the stock to sell off slightly. This is a tremendous buying oportunity at these levels. Loan growth is strong at 10%+, but we think this one is a prime takeover target. Worth at least a 100%+ premium to today's prices or $36-37 a share. They have a great market niche, with very little competition.

Catalyst

takeovers in this sector are hot over the last month and should continue for several more years. It is simply cheaper to buy than growth for many regional banks.