Maybe not.
The problem with the bank is simple. Asset quality. If the job market doesn't spruce up, the borrowers can't pay their mortgage. The loans get written down or off. That is about all there is to it. And it looks to me, they are underreserved.
Or their loan quality is improving. Just in the same boat with most of the other banks.
The level of NPAs this quarter will tell the tale.
Looks like there is support at a $1.75.
Book value is around $10.00