FCBP - First Choice Bancorp: With 20% Of The Balance Sheet Consisting Of PPP Loans I'm Confident In The 5% Dividend Yield
- First Choice Bancorp is reporting very strong earnings as the loan loss provisions remain very low.
- While more assets have moved to a non-accrual status, the LTV ratio tends to be low, which shields the bank from large losses.
- Being an SBA preferred lender, First Choice has been able to expand its balance sheet without adding more risk.
- I expect strong earnings in 2020 ($2+ EPS) and 2021 ($2.50+ EPS), which means the generous dividend remains fully covered.
- I'm planning to initiate a small long position and will monitor the loan portfolio for a few additional quarters.
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First Choice Bancorp: With 20% Of The Balance Sheet Consisting Of PPP Loans, I'm Confident In The 5% Dividend Yield