12/30/2014 Geoff Gannon Investor Questions Podcast #9: How Do You Calculate a Bank's Intrinsic Value? GuruFocus.com

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1 Don't Miss This Only Promotion (20% Off) Join GuruFocus Premium Membership Now for Only $279/Year Save up to $500 on Global Membership. Don't Miss It! ALL ARTICLES AND COLUMNS» Search Articles: Stock Symbol, Guru Names, or Keywords Search Geoff Gannon Investor Questions Podcast #9: How Search Do Enter Ticker, You Guru, Calculate Company, etc Go A Bank's Intrinsic Value? March 18, 2010 About: VLY +0% PGR +0% Home Screeners Gurus Insiders Market Articles Forum SUBSCRIBE LOG IN Help My Portfolios My Gurus My Checklists Print Bookmark Like 0 The bank we re going to look at is called Valley National (VLY). Valley National is a commercial bank with 198 branches in northern New Jersey and New York City. The bank is headquartered in Wayne, NJ. And the 198 branches are all within an hour s drive of Wayne. Over the weekend Valley bought the deposits of two failed New York City banks from the FDIC. Because of that Valley actually has more Geoff Gannon Articles branches and more deposits than the numbers I ll be using today. All the info I m giving you here is out of date. The big difference is that Valley now 414 followers has 600 to $700 million in added deposits. Along with those deposits Follow Valley picked up a couple extra branches in New York City. The 2 acquisitions over the weekend mean Valley is now about 7% bigger than it was in December. Listen to the show Let s put the recent deals aside and just focus on Valley s year end numbers. If what I say about Valley in this podcast gets you interested in the stock you can always look into the deals yourself. For now let s stick to the numbers Valley gave investors in its annual report to shareholders and its 10 K report to the SEC. The first thing we need to talk about is why I picked Valley. In an earlier episode I read a quote from Warren Buffett. One of the things he said in that quote was Don t spend time on companies that don t lend themselves to valuation. I think Valley lends itself to valuation. The reason why is simple. Valley is a conservative lender. And a slow grower. It looks pretty much the same from year to year and even from decade to decade. MORE GURUFOCUS LINKS Latest Guru Picks Value Strategies Warren Buffett Portfolio Ben Graham Net Net Real Time Picks Buffett Munger Screener Aggregated Portfolio Undervalued Predictable ETFs, Options Low P/S Companies Insider Trends 10 Year Financials 52 Week Lows Interactive Charts Model Portfolios DCF Calculator RSS Feed Monthly Newsletters The All In One Screener Portfolio Tracking Tool VLY STOCK PRICE CHART 1D 5D YTD 1Y 5Y 10Y 9.91 (1y: 2%) 10 A lot of banks are tough to value because they re constantly changing. Maybe you don t trust the management. Or the loan portfolio. Or the culture. Jan '14 Apr '14 Jul '14 Oct '14 9 Finally, a big reason why I chose Valley is because I know Valley. I live in north Jersey. I know the towns Valley s branches are in. And I know a more about Valley s customers than I know about people living in Ohio or Illinois or Nevada. GURU INTERVIEWS Sarah Ketterer of Causeway Capital's Answers to GuruFocus Q&A by Holly LaFon gannon investor questions podcast 9 how do you calculate a banks intrinsic value 1/10

2 That s where you start with a bank. You look for the familiar. You look for a place you know. You look for a management team you know. Or for a culture you ve watched and haven t seen change. Causeway Capital's Sarah Ketterer Joins GuruFocus for Q&A Ask Your Investing Question by Holly LaFon Jeff Auxier Interview with GuruFocus by Holly LaFon Investing Great Donald Yacktman Answers GuruFocus Readers' Questions by GuruFocus That s where you start when you re looking for a bank stock. You start with the intangibles. The soft stuff. Most of this episode is going to be about the hard stuff. We re going to talk facts and figures. We ll spend a lot of time with the balance sheet and the income statement. But that s never step one when you re looking for a bank stock to buy. I ve read past annual reports from Valley. I ve read and watched interviews with the CEO. I have a better feel for Valley than I do for most banks. And that s where you start. You start by picking a bank that lends itself to valuation. You don t start with something that s got too many complications, too many moving parts, or too much change. You start with something simple. Okay. Enough with the intangibles. Let s talk numbers. Whenever I look at a bank I start with the deposits. On page 74 of Valley s 10 K you ll find the company s balance sheet for December 31 st, Look under liabilities and you ll see Valley ended last year with $9.547 billion in deposits. GURU NEWS Carl Icahn Buys Stake in Manitowoc Inc., Pushes for Breakup by Holly LaFon An Interview With Value Hedge Fund Manager Guy Spier by Canadian Value Mohamed El Erian On The Good, The Bad and The Ugly Of Cheap Oil by Canadian Value Marc Faber Unveils His Surprises For 2015 by Canadian Value VALUE IDEAS Hammond Grows Out Of Value by Barel Karsan 3 Dividend Stocks to Buy After the Oil Price Collapse by Charles Sizemore William Blair s Top BioPharmaceutical Stock Picks for Q by TipRanks Buy U. S. Silica Now And Enjoy Triple Digit Profits From The Misplaced Fear Of Others by Ken McGaha MORE BY GEOFF GANNON Do You Need to Know Something the Market Doesn t? Sep 29, 2013 Doing the (Focused) Work Aug 05, Areas I Look at Before Buying a Stock Aug 01, 2013 How to Handle Stock Ideas Jul 31, 2013 Deposits are listed as a liability but they re really a bank s most valuable asset. Just like float is listed as a liability on an insurance company s balance sheet deposits are listed as a liability on a bank s balance sheet. But unlike float deposits always cost banks money. I don t know any bank that makes money on deposits before lending them out. That s different from an insurance company s float. Some insurance companies like Progressive (PGR) have combined ratios under 100. That means they earn an underwriting profit and still get to invest the float. TOP RANKED ARTICLES 10 Investment Rules From Legendary Investors by Canadian Value Guru Focus Value Idea Contest: Get on board the earnings train of Express Scripts (ESRX) by Nelson Nguyen Using the Phil Fisher Growth Checklist to Analyze Google by Sheila Dang David Tepper's Top Stock Holdings in His Favorite Sector by Holly LaFon That doesn t happen at banks. All banks lose money gathering deposits. Banks don t make money when you give them your cash. That part of the business loses money for them. Banks provide more services than they charge you for. They make up the difference and earn a profit by lending your money out at rates high enough to offset the costs of taking in your deposit. At year end Valley National had more deposits than gross loans. Deposits were $9.55 billion and gross loans were $9.40 billion. Not all banks have more deposits than loans. The year before Valley had lent about $800 million more than it had in deposits. That s normal for banks that use other sources of borrowing. YOU MAY ALSO LIKE On Ben Graham and Bank Stocks; Valley National (VLY). Royce Funds Commentary What is a Deep Value Investor? Why Activision's Impressive Run Will Continue Carl Icahn Discloses Manitowoc Stake and Pushes to Split Company Should You Sell This Aluminum Miner? But deposits are the best funding source. Banks don t make a lot of money borrowing and lending to others because they have to borrow the money at higher rates than they pay on customer deposits. This will be obvious in a minute when we go through Valley s costs. I just want to remind you that banks do have other sources of cash than deposits. But those sources are not good money makers. And they do not create goodwill. When we talk about goodwill we re really talking about what a bank is worth over book value. A great deposit gathering bank can be worth a couple times book. Just like a great underwriting insurance company can be worth a couple times book. But an insurance company that writes at a combined ratio of 105 is not worth more than book. The same is true of a bank that borrows money and re lends that money instead of using customer deposits. That bank is doing the same thing as an insurer with a combined ratio of 105. It s not value. gannon investor questions podcast 9 how do you calculate a banks intrinsic value 2/10

3 There are only 3 ways a bank can make by lending. The first is to gather deposits at a cost well below the market price of money. This is what most banks do. They provide services to their customers that draw cash into the branches. The customers put the money there not because of the interest they earn but because of all the great service they get. It s convenient. It s useful. And if the bank provides great service at a low cost it can basically buy money from its customers at less than it would cost to buy money from anyone else. As I ll show you in a minute Valley bought money from its customers at 3.39% last year. It then lent that money out at 5.74%. Even triple A corporate borrowers pay around 5.24% right now for long term money. Technically, deposits are short term money. They can be pulled at any time. But in reality a bank s customer deposits are a lot like an insurance company s float. As long as the bank is growing total deposits are basically one giant permanent loan. If a bank can gather deposits as cheaply as Valley did in 2009 it can make about 1.85% a year just by lending at triple A corporate rates. Even a bank that only did the safest mortgage lending would still make more than 1.6% a year on its deposits if it gathered those deposits as cheaply as Valley did. And that s the key. A bank has to gather deposits cheaply. If it doesn t do that the only way to make money is to take big risks. Banks that gather deposits as cheaply as Valley can take almost no risk on the lending side and still make 1.5% to 2% a year on their deposits. That s because Valley gathered deposits at a cost of 3.4% last year and even the best long term borrowers paid 5% a year and up in All of this is just background to explain why we re going to calculate Valley s intrinsic value based on its deposits. Deposits are what makes a bank money. Everything else is either temporary or unlikely to add much value over book. So when analyzing a bank stock start with deposits to try to find that bank s economic goodwill. If you don t find any chances are the bank isn t worth more than book value. Valley is worth more than book. And here s how we prove it. We start with the $66.09 per share in deposits. That s how much Valley had at the end of So when you buy a share of Valley s stock what you re really buying is $66 in deposits. The next question to ask is: How much do those deposits cost? Deposits are only valuable when they cost the bank less than the rates they can be lent out at. Right now I don t want to get into what rates a bank can lend at. So let s just use the triple A corporate bond yield. Triple A corporate bonds yield 5.24% right now. So for deposits to be clearly valuable they need to cost less than 5.24%. I should point out that while the triple A corporate rate sounds like an odd choice it works fine in this case. It s between the lowest rate on mortgage lending about 5% and the actual rate Valley lends at which is 5.74%. When you first look at a bank you don t know how risky its loans are. And you don t know how big the losses will be. The same thing is true of mortgage lending generally. I don t have an opinion about house prices. Do you? If not it s best to use the triple A corporate bond yield. That s as close as we can get to a nongovernment risk free long term interest rate. The reason we don t use government bonds is that buyers of government bonds often have different reasons for buying and selling than we do. Corporate bond buyers are more like us than Treasury bond buyers. So I like to use the triple A corporate bond yield as a yardstick for the price of long term money. gannon investor questions podcast 9 how do you calculate a banks intrinsic value 3/10

4 It s a good rate to use when looking at Valley. Remember this is a commercial bank we re talking about. Valley makes all kinds of loans. Everything from commercial mortgage loans to airplane loans. Now that we have one side of the value equation the interest rate Valley can lend at we need to look at the other side. The other side of the equation is what it costs Valley to gather deposits. From now on I ll be working off pages 74 and 75 of Valley s latest 10 K report to the SEC. You can find this report at the EDGAR website. Page 74 is Valley s balance sheet. And page 75 is Valley s income statement. We re going to move back and forth between the two statements using numbers from one and dividing them by numbers from the other. If you re used to valuing non financial businesses by their cash flows this will be a new experience for you. It s simple. It just sounds strange at first. Try to follow along. And pay attention to why I m doing what I m doing. Don t worry about the exact numbers. Just try to follow the steps. And try to understand why you should look at a bank this way. The first thing you do is get out a pen and a calculator. You don t need a separate piece of paper just write in the margins of the 10 K. There s always lots of whitespace in SEC reports. I scribble all over them. The first numbers we re going to look at are average deposits and average loans. For loans I m going to use the gross number. In other words for 2009 I m going to take the $9.268 billion in net loans and add back the allowance for loan losses of $ million. In this case you don t even have to do that because Valley lists loans separate from net loans. Ignore the net loans number and use the loans number instead. It s $9.37 billion for 2009 and $10.14 billion for Since we re going to compare Valley s loans to the interest earned on those loans in 2009 we want to take an average of the starting and ending amounts. That means you add $9.37 billion and $10.14 billion and then divide by 2. You get $9.76 billion. That s Valley s average gross loans during Now go to the income statement. The very first item under Interest Income is called Interest and fees on loans. That s the number we want. It s $ million. Take that $ million in loan interest and divide it by the average gross loans of $9.76 billion. You get 5.74%. That may be a bit lower than the actual rate Valley is lending at because we used gross loans instead of net loans. Don t worry about it. The difference is small. And we re using the more conservative approach. When in doubt always use the most conservative approach. And when it comes to analyzing a bank you re going to be in doubt most of the time. Okay. So write 5.74% down somewhere. That s what Valley can earn on its loans. At this point we might also want to check total interest divided by investment securities plus loans. I m not going to make you do that. Because in this case the number is close. Securities might pay more like 5.4% versus 5.74% on loans. But it s clear we re in the right ballpark. So let s just leave investment securities aside and focus on loans and deposits. Again Valley is lending at 5.74%. Now we want to know how much it costs Valley to gather deposits. This is the most important part of what we re doing today. Most of a bank s value comes from its cost of deposits. Start by looking at the balance sheet on page 74 of Valley s 10 K. Under liabilities you ll see total deposits of $9.55 billion in 2009 and $9.23 billion in We want the average. So add them together and divide by 2. You ll get $9.39 billion. That s Valley s average deposits for Write that number down somewhere. Then go over to the income statement. Go to interest expense and you ll see two lines listed for interest on deposits. Add them both together. You gannon investor questions podcast 9 how do you calculate a banks intrinsic value 4/10

5 get $118.3 million. Divide that by Valley s $9.39 billion in average deposits. You get 1.26%. That s how much interest Valley paid on its deposits in That number isn t very interesting. A lot of banks pay roughly the same interest rate on customer deposits. What matters most is the bank s non interest income and non interest expenses. Non interest expenses are bigger than non interest income for most banks. So we ll start with non interest expenses and then subtract non interest income. There are 2 ways to do this. One is the easy way. The other is the right way. The right way is to back out all the things that have to do with trading instead of deposit gathering. Also you want to reverse any amortization of intangibles. Amortization is a non cash charge without much point in the real world. And finally in this case I would also use the 2008 FDIC assessment instead of the 2009 FDIC assessment. Last year included a special charge from the FDIC that was much bigger than it will be in the future. Don t worry I m not going to make you do all that I ll just tell you what you get. Valley s 2009 non interest expense goes from $ million down to $ million. And non interest income goes up from $ million to $ million. In other years we would ve gotten different results. Sometimes the adjustments would give us lower numbers. Here most of them are in Valley s favor. So now we take the adjusted non interest expense of $ million and subtract the adjusted non interest income of $ million. That gives us $ million in adjusted net non interest expense. That s a mouthful. But it s an important number. What we re doing here is calculating how much Valley spends on things other than interest to gather customer deposits. To get the answer we just divide the adjusted net non interest expense of $ million by Valley s average 2009 deposits of $9.39 billion. When you do that you get 2.13%. That s how much it costs Valley in addition to what the bank pays in interest to keep customer deposits. Next we want to add the two different costs together. Valley s interest cost on deposits is 1.26%. And its non interest cost on deposits is 2.13%. That means Valley s total cost on deposits is 3.39%. You can think of that 3.39% as the rate Valley borrows at. Or if you prefer you can think of its as Valley s cost of production. Valley can mine money at a cost of 3.39 cents per dollar. The market price for money is 5.24 cents per dollar. That s if we use the yield on triple A corporate bonds. I think that s a good starting point. Now let s calculate Valley s pre tax deposit earning power. Take the 5.24% yield on triple A bonds and subtract the 3.39% it costs Valley to gather deposits. You get 1.85%. That s Valley s economic value margin on deposits. Simply put: Valley mines money at 3.39 cents per dollar and then sells that money in the open market at 5.24 cents per dollar. That s just a metaphor. As you know Valley makes the loans money itself. And it makes them at 5.74% not 5.24%. But for now we re going to do a pure cost of production calculation. So we ll use the market price of money as measured by triple A corporate bond yields. Once again: that means 5.24% minus 3.39% equals Valley s economic value margin on deposits gannon investor questions podcast 9 how do you calculate a banks intrinsic value 5/10

6 of 1.85%. To calculate the intrinsic value of Valley s stock we start with Valley s deposits per share. You can find this yourself by going to the balance sheet and taking total deposits and then flipping over to the income statement to find diluted shares outstanding. I actually did this for you earlier. The answer is $66.09 in deposits per share. Now we have a way of valuing the deposits. We can figure out how much the deposits per share are worth by multiplying the $66.09 a share in deposits times Valley s economic value margin of 1.85%. Remember that 1.85% is how far below triple A corporate bonds Valley s cost of production is. Valley produces deposits at 3.39%. And it should be able to lend them at 5.24% or higher. The value of a bank s deposits comes from this spread between the market price of money which is basically a commodity and the bank s cost of production. The difference in this case is 1.85% times the $66.09 a share in deposits. That comes out to $1.22 a share in pre tax deposit earnings power. Like we did with insurance companies we re going to multiply that pre tax number by 10. Remember multiplying pre tax earnings by 10 is a lot like multiplying after tax earnings by 15. So we re kind of putting a P/E ratio of 15 on these deposits. That $1.22 a share in pre tax deposit earnings power times 10 gives us an intrinsic value of $12.22 a share. That s a conservative estimate of what Valley s stock is worth. It only looks at deposits. And it uses the triple A corporate bond yield instead of the 5.74% Valley actually charges on its loans. A more realistic intrinsic value estimate would be $15.53 a share. That comes from assuming Valley will lend its deposits at 5.74% instead of 5.24%. Of course there might be losses. Valley has a great record when it comes to lending. You can read about it in the company s annual report. Any analyst who talks about the company will tell you the same thing. Valley s lending standards are tough. And they ve been tough for decades. So it might be okay to assume Valley will lend at 5.74% and have very low loan losses in the long run. But the best way to look at any bank is to start by calculating the bank s cost of production and then seeing how far below the triple A corporate bond yield that cost of production is. You then multiply that number by the amount of deposits per share. And then multiply that pretax earnings number by 10. If you can buy a bank like Valley at less than that conservative intrinsic value estimate you should consider it. When I say a bank like Valley I mean a bank with a long history of conservative lending. That makes it easier to value the bank. You can focus on deposits instead of worrying about loans. And deposits are where the value is at any bank. So to sum up we did an intrinsic value calculation for Valley based only on deposits and decided the bank was worth between $12 and $16 a share. Realistically, it looks like Valley is worth about $15.50 a share based on its deposits alone. And conservatively I felt Valley was worth $12.20 a share at the bare minimum. Just like when you look at any other business there can be other nuggets of value in a bank. For example: Valley owns about 100 plots of land and the buildings on them throughout gannon investor questions podcast 9 how do you calculate a banks intrinsic value 6/10

7 northern New Jersey. It looks like Valley carries the land on its books at a bit under $600,000 per plot. Is the land worth that much? Or is it worth a whole lot more? Personally I think it s a mistake to get hung up on that sort of thing. Valley uses the land for its branches and in 4 cases for offices. The value in a bank like Valley isn t in the real estate it owns. It s in the customer deposits. That s what you focus on. You think about customers. And you think about deposits. Almost all of a bank s value and literally all of a bank s value over book comes from customer deposits. So that s always where you start when you calculate a bank s intrinsic value. With deposits. Okay. That s all for today s show. If you have an investing question you want answered call and leave us a voice mail. That s Call Thanks for listening. About the author: Geoff Gannon Geoff Gannon Rating: 4.6/5 (28 votes) Subscribe via Subscribe RSS Comments Softdude years ago Thanks for a good informative article. SirDuke 4 years ago Thanks geoff, very useful. Can you please explain why you used an earnings multiple of 10x? Geoff Gannon 4 years ago SirDuke, I used a pre tax multiple of 10 times. That's the same as 15.4 times after tax earnings at a 35% rate. (10 * (1/0.65) = 15.4) gannon investor questions podcast 9 how do you calculate a banks intrinsic value 7/10

8 I used 10 because it's a round number and 15 has been kind of a normal P/E ratio for stocks over the decades. In all honesty, businesses are normally worth at least 12 times pre tax earnings if all earnings are in cash because that gives you an initial rate of return greater than 8% (1/12 = 8.33%). For myself, I would probably use 12x pre tax earnings. But when doing an intrinsic value estimate others will read I try to be a bit more conservative. So I used 10 times. Salsero 4 years ago This was a great podcast. You must have infinite patience and great skill at organizing what you are going to say. Much appreciated. I've been trying to get a handle on banks for a few months. I tired applying the techniques to a bunch of banks and came up with several that seem like Valley National to be trading at a modest discount to the calculated intrinsic value. For Northern Trust, Wells Fargo, and US Bancorp, on the other hand, I came up with intrinsic values 40% to 60% below their current share prices. On these three enormous banks, fee income lowers the non interest expense or even erases it, making the deposit base look awfully profitable. Am I going astray here, or does such side income make that much difference? BTW, I love little suggestions like using the white space on the financial statements for calculations. Fk 4 years ago Hi Geoff, A couple questions: 1) What about leverage on the deposit base? I thought banks typically are able to loan about 10x of their deposit base. Was that leverage already factored in the example you used for VLY? 2) how do we look at off balance sheet stuff to discern whether VLY or any bank has toxic CDOS or other mortgage backed securities? Thanks for the podcasts. I enjoyed and learned from your discussion of insurance companies and banks. Chawksworth 4 years ago So based on your "formula" VLY is fairly valued. How about WFC? Using your "formula" they would come in around $50.70, which looks to me like a better bank trading at a better price. Pagnihotri 4 years ago Geoff, thanks for this most helpful podcast. I understand that this method would work best when you look at a relatively simple commercial bank that has followed a conservative approach to lending. However, given that lending is a cyclical business, how do you think about how losses on loans impact earnings? Do you look at the AAA corporate yield as the "loss adjusted" rate that they should earn meaning that if they were to lend at a higher rate it would entail greater risk and hence higher losses so that the net income earned on loans should not be greater than the AAA yield on a risk adjusted basis? The reason I ask is that you mentioned that the AAA rate is conservative when compared to the 5.74% that you worked out earlier. gannon investor questions podcast 9 how do you calculate a banks intrinsic value 8/10

9 However, that number was based on gross loans at a particular point in time and so it would be great if you could comment on what would be the best way to think about through the cycle losses. I look forward to hearing your thoughts! Pitreab 4 years ago Hi Geoff, Thanks a lot for this article. This is really useful for me. With ref to this article, I tried finding out the same for BAC using latest 10Q ( 5/7/2010) Gross Loans bil Interest & fees on loans bil Bank's Lending Rate = / = % Total Deposits bil Interest Expense = Net non interest expense = 0.445bil (non interest expense non interest income) = ( ) Hence interest expense used to calculate cost of deposits = = Total Cost of Deposit = 1.495/ = % (This looks too low to me, can you please confirm if this calculation is correct) Hence, the back can mine money at % Can earn at 5.24% (Price of money as AAA corporate bond) H/w, actually bank is lending money at the rate of ??? Hence economic value on deposit = = Continuing with calculation Deposit per share = Total Deposit/Diluted shares outstanding = bil/10,005254,000 = The value of bank's deposit = * / 100 = Intrinsic value of the bank = * 10 = (min) However, how do I use "Price of money as AAA corporate bond" in such case as (Unlike VLY case), for BAC, bank's lending rate is less than that of AAA corporate bond? Am I missing anything here? Please let me know. Thanks Kfh227 4 years ago gannon investor questions podcast 9 how do you calculate a banks intrinsic value 9/10

10 So based on your "formula" VLY is fairly valued. How about WFC? Using your "formula" they would come in around $50.70, which looks to me like a better bank trading at a better price. Using my own methods, I figure WFC is worth somewhere in the $35 $50 range. But more like in the $40 $50 range. WFC is at $28 right now. Even if worth $45, that's not bad for a high quality company like this. Please leave your comment: Post Comment More GuruFocus Links Latest Guru Picks Warren Buffett Portfolio Real Time Picks Aggregated Portfolio ETFs, Options Insider Trends 52 Week Lows Model Portfolios RSS Feed The All In One Screener Value Strategies Ben Graham Net Net Buffett Munger Screener Undervalued Predictable Low P/S Companies 10 Year Financials Interactive Charts DCF Calculator Monthly Newsletters Portfolio Tracking Tool Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names Earn affiliate commissions by embedding GuruFocus Charts GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More) Home About Jobs Advertise Site Map Term of Use Privacy Policy RSS iphone App Alerts Affiliate Program FAQ Contact Us GuruFocus.com, LLC. All Rights Reserved. Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily. gannon investor questions podcast 9 how do you calculate a banks intrinsic value 10/10