Bank Stock Analysis: Greenville Federal

Greenville Federal (GVFF) is a small, illiquid rural bank trading at 0.65x book value. The bank has a low non-performing loan ratio, but its allowance for credit losses is also low. The loan book is diversified, but the bank's profitability has been weak, with a high efficiency ratio. The author passes on the stock, hoping to find a higher quality bank at a similar valuation.