Thread by @hareng_rouge

"The SEN handled 68,361 transactions in the quarter, a 70% sequential increase from the 2020 second quarter and a 455% increase as compared to the 2019 third quarter"

So the chart below is the one above but if you didn't like the crypto aspect of that then this is another one to pass by - however, whilst there's a little more of the same this has an additional angle: this is kind of a bank proxy for what #GAN is (was?) meant to be to gambling.

Here it is, selling for just under a whisker of TBV - this bank, MBV Financial, $MBVF is growing like a weed not only to a small crypto side of things but in large part thanks to the fact that they're directly linked to deposit taking for the likes of Draft Kings etc

Along with $SI above, this is another bank that instead of quietly stagnating, is attempting to adapt.

As correctly pointed out by @relativevalue00, the name is MVB Financial $MVBF rather than MBV Financial $MBVF They are indeed illiquid and have the advantage over MBV of actually existing. Many thanks for the heads up!

Seems like quite a big number here for $MVBF

A couple of interesting bits on $SI - thanks to
@dopamine_uptake for flagging them up

Podcast with CEO - excellent to understand the company and what APIs mean for banking. You can see why some trade below book and others don't

podcasts.google.com/feed/aHR0cHM6L…

Cathie hard on it

"bank" thread update three weeks on.

Net interest margin of 3.4%. Trading at 19% over TBV

I was thinking about mentioning this bank yesterday: $EBC, a recent demutualisation but decided on the whole it was too boring and too little to say. Good deposit growth ex-ppp; cost of deposits practically nil and non-interest income exposure of ⅓ of the total.

Shortly after not tweeting about it, they then announced a merger - the interesting thing here is the price: 1.75 TBV of the target. It seems a bit on the high side but I don't know the target.

businesswire.com/news/home/2021…

Here's another bank trading perhaps by now, a little under that 1.75x - it's the pipsqueak in the previous few tweets and the one just above $20B cap $MTB in 22nd place in terms of number of deposit accounts.

Here's a December Form 4 from the CEO Mazza, as you can see he likes the stock.

And thanks to @walnutavevalue's sharp eyes, we find that he actually likes it enough to borrow money to exercise as many options as he can - as you'd imagine vs his $700K salary and $2M overall annual comp, a $25M stock position means he has to stretch.

What does his board see to be running a 15% ownership stake with him now at +6% and the 2nd largest holder of stock overall?

My guess is that it's probably similar to the highlighted items in the $EDC statement above. Deposits are growing in the order of a couple of % a week - nice but that only takes you so far; you can only make so much on lending

They're probably also looking non-interest income

Integrations with BNPL players, card aquiring, gaming wallets - the whole nine yards; things like this below also discovered by @walnutavevalue. Imagine the fervour if such things were available publicly!

$MVBF's latest Q: red with the fintech contribution to NIM at double the level of last year, it's starting to become a material offset to spread pressure. Blue shows some of the cost side benefits from an earlier sale of 4 branches. Green's the next sale, I assume similar to come

Market starting to appreciate the virtues of this one, perhaps fans of $TBBK.

I'll bury this here. Above is $CCB. If you look at the kind of premiums the differentiated banks got / are getting whether that was crypto for $SI at the top, gaming for $MVBF or the beginnings of white labelling for $CCB then whilst there's an awful lot not to like about $BMTX..

..then it's not entirely impossible that <1x '21 sales and 20% (extremely) adjusted EBITDA margin may be too cheap.

Results from $BMTX, decent enough I'd think. Operating cashflow apparently $9.5m for the quarter. The line with "other" seems to be whitelabel work for what I assume must either be $GOOG or $TMUS

Whatever BaaS fees are, they're growing awfully quickly..