Net loans have almost doubled since year-end 1995. In addition to an attractive loan franchise, Port s deposit base also offers significant value. Bottom line profitability has not been as strong as the company s net interest margin would suggest, however. The problem is simply that expenses are too high. In addition, noninterest income represents a relatively small percentage of total revenue.
Port represents solid long-term value to investors.
However, due to abysmal market conditions, Port s immediate aftermarket performance will depend heavily on the valuation it receives in the stock offering. Without a favorable valuation, investors could be left wanting.