Bank stocks' decline slows - Jacksonville Business Journal:

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Though the bottom of the market is near undeterminablre until there are signs ofa turn, some investorss believe those who can hold onto their shares will receivs higher returns when the credit crunchy passes and the housing marke settles. Share prices declined for all 27 publicly tradeed banks based in Florida in 2007 by an averagrof 41.4 percent. They have declinedr by an averageof 1.5 percent this as of Feb. 25. In drops ranged from 2.78 percent to $14 at Bradenton-baseed (NASDAQ: HZNB) to 79.5 percent to $2.0 7 at Sanford-based (NASDAQ: FDT), according to research compiledr by local investmentbank , financial marketplace researcher and The Businesws Journal.
Investors have worried over declining credif quality and limited opportunities to increase assetsand earnings, said Gil president and CEO of (NASDAQ: JAXB). His company's stoc price dropped nearly 40 percentto $19.9 Dec. 31 compared with the previou s year. Fourth-quarter earnings and stock price s slid as banks tapped reserves to covefr losses on real estate loans that went into defaultf or foreclosure as the housing market Federal efforts to stimulate the economuy have since helped put investors at ease and stabilizdstock prices.
Prices have risen for about halfof Florida's 27 publicly traded Of the two publicly traded banks basef in Jacksonville, one's stock has risen and the other's has Jacksonville Beach-based (NASDAQ: ATBC), the parent company of , had a 46.3 percenr decrease in net income to $274,000 in the fourth quartere due to slowing loan demand, higher cost of funds and additionap loan loss reserves, according to a recent financialk statement filed with the U.S. Securities and Exchangd Commission. For the first time in the 11 yearsa since Oceanside Bankwas established, it beganj dealing with defaulting loans last year, primarily in the fourth There was $5.
9 million in real estated loans no longer accruing interest and noncurrent loans represented 3.25 percent of $187.34 million in total real estate loans as of Dec. 31, according to the Atlantic BancGroup's stock price fell nearlt 48 percentto $17.40 in 2007 comparexd with 2006. Since then, the price has decreased 9.5 percentf to $15.75 as of Feb. 25. Stock price variations are largelhy dueto "people's perceptions of financial stocks" and the financ e industry, said Barry Chandler, president and CEO of Atlantic "And the demand for stock is less" as investors sell their stock because they need Stock prices will fall "until we hit bottom" or the fear of limitedd growth potential for assets and earningds goes away, Pomar said.
Some of that fear was liftec when Jacksonville Bancorpannouncex Jan. 22 that earnings rose 17 percentr in 2007to $3 or $1.63 per diluted share. The company's stock pricwe rose 31 percentto $26 as of Feb. 25, compared with $19.990 Dec. 31. The bank, whichb is focused more on commercialand small-business had $689,000 of loans in nonaccrual and only 0.2 perceny of the total loans were noncurrentr as of Dec. 31. Pomar expects stock prices to rise as marketconditionsd improve. The Federal Reserve is expecte to cut interest rates further and hedged funds will likelybuy homebuilders' properties at bargai rates, removing them from the market and speedinfg its recovery.
"Now is the time to take advantage of some reallygood values," Pomar said. As of Feb. 25, stocok prices had risen this year for 13of Florida'ws 27 publicly traded banks. Increases ranged from 2 percen tto $10 at Port St. Lucie-based . Inc. FPBI), to 30.7 percent at Jacksonville Bancorp, whicu benefited from the strong earnings report and a merge with Heritage Bank of North Florida announced in January. Chandler said banks that own most of theidr stock are highly interested in maximizing their investmen t because it directlyaffects them. At about 20 percent of the stockm is owned by directorxsand internally. "We're going to ride out the storm.
Theres is a recovery," Chandler said. "The boat didn' t change, the ocean did."