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HomeTown Bankshares

Nasdaq:HMTA
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HMTA
Nasdaq
$83M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

HomeTown Bankshares Corporation operates as the bank holding company for HomeTown Bank that provides retail and commercial banking products and services in the United States. The last earnings update was 18 days ago. More info.


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HMTA Share Price and Events
7 Day Returns
0.1%
NasdaqCM:HMTA
2%
US Banks
1.3%
US Market
1 Year Returns
20.3%
NasdaqCM:HMTA
-9.8%
US Banks
6.6%
US Market
HMTA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HomeTown Bankshares (HMTA) 0.1% -2.7% 16% 20.3% 54.3% 126.7%
US Banks 2% -5.8% 8% -9.8% 43.5% 35.2%
US Market 1.3% 0.5% 13.9% 6.6% 37.1% 44.1%
1 Year Return vs Industry and Market
  • HMTA outperformed the Banks industry which returned -9.8% over the past year.
  • HMTA outperformed the Market in United States of America which returned 6.6% over the past year.
Price Volatility
HMTA
Industry
5yr Volatility vs Market

HMTA Value

 Is HomeTown Bankshares undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HomeTown Bankshares to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HomeTown Bankshares.

NasdaqCM:HMTA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $8.72 * 6%
$0.52
Book Value of Equity per Share Median Book Value from the past 5 years. $8.72
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:HMTA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.62
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.62 (1 + (1- 21%) (18.4%))
0.805
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.805 * 5.96%)
7.53%

Discounted Cash Flow Calculation for NasdaqCM:HMTA using Excess Returns Model Model

The calculations below outline how an intrinsic value for HomeTown Bankshares is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqCM:HMTA Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (6% – 7.53%) * $8.72)
$-0.13
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.13 / (7.53% - 2.73%)
$-2.77
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $8.72 + $-2.77
$5.96
NasdaqCM:HMTA Discount to Share Price
Calculation Result
Value per share (USD) From above. $5.96
Current discount Discount to share price of $14.35
= -1 x ($14.35 - $5.96) / $5.96
-141%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of HomeTown Bankshares is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HomeTown Bankshares's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HomeTown Bankshares's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:HMTA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.68
NasdaqCM:HMTA Share Price ** NasdaqCM (2019-03-29) in USD $14.35
United States of America Banks Industry PE Ratio Median Figure of 584 Publicly-Listed Banks Companies 12.87x
United States of America Market PE Ratio Median Figure of 3,066 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HomeTown Bankshares.

NasdaqCM:HMTA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:HMTA Share Price ÷ EPS (both in USD)

= 14.35 ÷ 0.68

21.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HomeTown Bankshares is overvalued based on earnings compared to the US Banks industry average.
  • HomeTown Bankshares is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does HomeTown Bankshares's expected growth come at a high price?
Raw Data
NasdaqCM:HMTA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
12.3%per year
United States of America Banks Industry PEG Ratio Median Figure of 258 Publicly-Listed Banks Companies 1.18x
United States of America Market PEG Ratio Median Figure of 2,106 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for HomeTown Bankshares, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on HomeTown Bankshares's assets?
Raw Data
NasdaqCM:HMTA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $9.18
NasdaqCM:HMTA Share Price * NasdaqCM (2019-03-29) in USD $14.35
United States of America Banks Industry PB Ratio Median Figure of 589 Publicly-Listed Banks Companies 1.22x
United States of America Market PB Ratio Median Figure of 5,161 Publicly-Listed Companies 1.89x
NasdaqCM:HMTA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:HMTA Share Price ÷ Book Value per Share (both in USD)

= 14.35 ÷ 9.18

1.56x

* Primary Listing of HomeTown Bankshares.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HomeTown Bankshares is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess HomeTown Bankshares's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. HomeTown Bankshares has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HMTA Future Performance

 How is HomeTown Bankshares expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover HomeTown Bankshares, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HomeTown Bankshares expected to grow at an attractive rate?
  • HomeTown Bankshares's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • HomeTown Bankshares's earnings growth is positive but not above the United States of America market average.
  • Unable to compare HomeTown Bankshares's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:HMTA Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:HMTA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 12.3%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 4.3%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:HMTA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:HMTA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 21 7 4
2018-09-30 21 6 4
2018-06-30 20 7 3
2018-03-31 20 5 3
2017-12-31 20 4 2
2017-09-30 20 5 3
2017-06-30 19 5 3
2017-03-31 19 5 2
2016-12-31 18 6 2
2016-09-30 18 5 2
2016-06-30 18 4 2
2016-03-31 19 6 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HomeTown Bankshares's earnings are expected to grow by 12.3% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if HomeTown Bankshares is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:HMTA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from HomeTown Bankshares Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:HMTA Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.68
2018-09-30 0.67
2018-06-30 0.60
2018-03-31 0.51
2017-12-31 0.43
2017-09-30 0.47
2017-06-30 0.47
2017-03-31 0.44
2016-12-31 0.45
2016-09-30 0.58
2016-06-30 0.61
2016-03-31 0.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if HomeTown Bankshares will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess HomeTown Bankshares's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HomeTown Bankshares has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HMTA Past Performance

  How has HomeTown Bankshares performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HomeTown Bankshares's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HomeTown Bankshares's year on year earnings growth rate has been positive over the past 5 years.
  • HomeTown Bankshares's 1-year earnings growth exceeds its 5-year average (58.4% vs 10.4%)
  • HomeTown Bankshares's earnings growth has exceeded the US Banks industry average in the past year (58.4% vs 43.8%).
Earnings and Revenue History
HomeTown Bankshares's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HomeTown Bankshares Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:HMTA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 21.29 3.95 13.24
2018-09-30 20.66 3.88 13.11
2018-06-30 20.30 3.46 13.02
2018-03-31 19.76 2.92 12.87
2017-12-31 19.59 2.50 12.60
2017-09-30 19.72 2.71 12.55
2017-06-30 19.40 2.69 12.26
2017-03-31 18.66 2.28 11.65
2016-12-31 18.18 2.11 11.15
2016-09-30 18.33 2.37 10.70
2016-06-30 18.08 2.11 10.52
2016-03-31 18.55 2.75 10.53
2015-12-31 18.36 2.71 10.44
2015-09-30 17.84 2.66 10.18
2015-06-30 17.47 2.58 10.13
2015-03-31 16.99 2.55 9.76
2014-12-31 16.57 2.58 9.33
2014-09-30 16.00 2.37 8.92
2014-06-30 15.57 2.10 8.42
2014-03-31 15.46 1.96 8.29
2013-12-31 15.13 1.74 8.32
2013-09-30 14.89 1.56 8.38
2013-06-30 14.53 1.70 8.27
2013-03-31 13.18 1.15 8.03
2012-12-31 12.86 3.99 7.80
2012-09-30 12.08 3.86 7.61
2012-06-30 11.58 3.92 7.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HomeTown Bankshares has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • HomeTown Bankshares used its assets less efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if HomeTown Bankshares improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess HomeTown Bankshares's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HomeTown Bankshares has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HMTA Health

 How is HomeTown Bankshares's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of HomeTown Bankshares's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HomeTown Bankshares Company Filings, last reported 3 months ago.

NasdaqCM:HMTA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 53.70 15.31 13.27
2018-09-30 52.97 19.35 18.32
2018-06-30 52.08 22.66 21.01
2018-03-31 51.58 20.64 17.09
2017-12-31 50.89 19.84 12.29
2017-09-30 50.68 19.60 34.89
2017-06-30 49.84 20.03 37.71
2017-03-31 49.06 18.27 28.06
2016-12-31 48.23 16.34 11.67
2016-09-30 48.28 17.34 22.30
2016-06-30 47.44 22.76 29.06
2016-03-31 47.24 30.27 28.97
2015-12-31 46.39 31.56 26.17
2015-09-30 45.54 25.76 32.05
2015-06-30 44.68 26.30 15.86
2015-03-31 44.34 24.81 16.33
2014-12-31 43.23 20.42 10.74
2014-09-30 42.25 22.72 14.16
2014-06-30 41.56 26.57 17.61
2014-03-31 40.66 20.00 16.28
2013-12-31 39.54 22.26 16.98
2013-09-30 39.24 19.52 15.88
2013-06-30 49.49 19.36 27.72
2013-03-31 36.94 19.66 12.50
2012-12-31 36.72 22.28 6.18
2012-09-30 36.30 19.67 12.60
2012-06-30 35.57 19.47 23.41
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • HomeTown Bankshares has an acceptable proportion of non-loan assets held.
  • HomeTown Bankshares's liabilities are made up of primarily low risk sources of funding.
  • Loans at HomeTown Bankshares are broadly funded by customer deposits.
  • HomeTown Bankshares's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • HomeTown Bankshares has a sufficient allowance for bad loans.
  • HomeTown Bankshares has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess HomeTown Bankshares's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HomeTown Bankshares has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HMTA Dividends

 What is HomeTown Bankshares's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.11%
Current annual income from HomeTown Bankshares dividends.
If you bought $2,000 of HomeTown Bankshares shares you are expected to receive $22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • HomeTown Bankshares's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • HomeTown Bankshares's dividend is below the markets top 25% of dividend payers in United States of America (3.68%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:HMTA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 469 Stocks 3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2001 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:HMTA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-15 0.160 1.109
2019-02-21 0.160 1.104
2018-11-13 0.160 1.186
2018-10-31 0.160 1.095
2018-05-16 0.160 1.150

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether HomeTown Bankshares has stable dividend payments.
  • HomeTown Bankshares only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of HomeTown Bankshares's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.7x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess HomeTown Bankshares's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HomeTown Bankshares afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HomeTown Bankshares has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HMTA Management

 What is the CEO of HomeTown Bankshares's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Susan Still
COMPENSATION $338,386
AGE 65
TENURE AS CEO 10.3 years
CEO Bio

Ms. Susan K. Still serves as President, Director and Chief Executive Officer of HomeTown Bank (the “Bank”) since May 2008 and serves as President, Director and Chief Executive Officer of HomeTown Bankshares Corporation ("Company") since December 2008. From the time that she began her career, she has been dedicated to her career and community. After graduating with an Accounting degree from Virginia Tech, she began her career as a Teller at a bank in Florida, spawning the start of more than 40 years in the banking industry. She has been with the Bank from the very beginning. Prior to joining Bank, she was a Commercial Lender for SunTrust Bank and before that, for Dominion Bank (later Wachovia). Ms. Still serves on a number of Community Boards, and she also serves on the Board of Directors of the Federal Reserve Bank of Richmond, Virginia Bankers Association, and formerly on the American Bankers Association Community Bankers Council. She served as the Executive Vice President and Chief Lending Officer of Bank since November 2005 to May 2008; it was quickly evident that her 30 years of banking experience would bring great change to the community-banking scene in Roanoke at Company. In 2008, she was named President and Chief Executive Officer. She makes a local, regional, and national impact through her Board service on state and local organizations that support banking, business, and education throughout region. She is also an active Board Member with the Roanoke Regional Chamber of Commerce, the Foundation for Roanoke Valley and a Trustee on the Board of the North Cross School. She is a graduate of Virginia Tech and the University of Virginia School of Bank Management.

CEO Compensation
  • Susan's compensation has been consistent with company performance over the past year.
  • Susan's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the HomeTown Bankshares management team in years:

6.1
Average Tenure
58.5
Average Age
  • The average tenure for the HomeTown Bankshares management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Susan Still

TITLE
President
COMPENSATION
$338K
AGE
65
TENURE
10.3 yrs

Vance Adkins

TITLE
Executive VP & CFO
COMPENSATION
$178K
AGE
37
TENURE
2.7 yrs

Terri Curro

TITLE
Senior VP & COO

Terry O’Shaughnessy

TITLE
Executive VP & Chief Lending Officer
AGE
62
TENURE
10.8 yrs

Wes Budd

TITLE
Executive VP & Chief Credit Officer
AGE
55
TENURE
1.6 yrs

Laurie Hart

TITLE
Executive VP & Chief Deposit Officer
AGE
56
TENURE
9.5 yrs

Nadia Summo

TITLE
Corporate Secretary

Charles Maness

TITLE
Consultant
COMPENSATION
$186K
AGE
61
TENURE
2.7 yrs
Board of Directors Tenure

Average tenure and age of the HomeTown Bankshares board of directors in years:

10.3
Average Tenure
72
Average Age
  • The average tenure for the HomeTown Bankshares board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

George Cartledge

TITLE
Chairman of the Board
COMPENSATION
$42K
AGE
76
TENURE
4.9 yrs

Susan Still

TITLE
President
COMPENSATION
$338K
AGE
65
TENURE
10.3 yrs

Daniel Hamrick

TITLE
Vice Chairman
COMPENSATION
$34K
AGE
71

William Rakes

TITLE
Director
COMPENSATION
$34K
AGE
79
TENURE
10.3 yrs

Warner Dalhouse

TITLE
Director
COMPENSATION
$34K
AGE
83
TENURE
10.3 yrs

James Turner

TITLE
Director
COMPENSATION
$39K
AGE
73
TENURE
10.3 yrs

Nancy Agee

TITLE
Director
COMPENSATION
$15K
AGE
66
TENURE
7.8 yrs

Marc Fink

TITLE
Director
COMPENSATION
$37K
AGE
58
TENURE
4.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess HomeTown Bankshares's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HomeTown Bankshares has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HMTA News

Simply Wall St News

What You Should Know About HomeTown Bankshares Corporation’s (NASDAQ:HMTA) Risks

As a small-cap bank with a market capitalisation of US$78.51m, HomeTown Bankshares Corporation’s (NASDAQ:HMTA) profit and value are directly affected by economic growth. … Risk associated with repayment is measured by bad debt which is written off as an expense, impacting HomeTown Bankshares’s bottom line. … Check out our latest analysis for HomeTown Bankshares

Simply Wall St -

What You Should Know About HomeTown Bankshares Corporation’s (NASDAQ:HMTA) Liquidity

As a small-cap bank stock with a market capitalisation of US$79.09m, HomeTown Bankshares Corporation’s (NASDAQ:HMTA) risk and profitability are largely determined by the underlying economic growth of the US regions in which it operates. … Unpredictable macro events such as political instability could weaken its financial position which is why it is important to understand how well the bank manages its risk levels. … High liquidity and low leverage could position HomeTown Bankshares favourably at the face of macro headwinds.

Simply Wall St -

Is HomeTown Bankshares Corporation (NASDAQ:HMTA) Attractive At This PE Ratio?

HomeTown Bankshares Corporation (NASDAQ:HMTA) trades with a trailing P/E of 28.2x, which is higher than the industry average of 17x. … While this makes HMTA appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio

Simply Wall St -

Did HomeTown Bankshares Corporation (NASDAQ:HMTA) Create Value For Investors Over The Past Year?

and looking to gauge the potential return on investment in HomeTown Bankshares Corporation (NASDAQ:HMTA). … With an ROE of 5.81%, HomeTown Bankshares Corporation (NASDAQ:HMTA) returned in-line to its own industry which delivered 8.45% over the past year. … But what is more interesting is whether HMTA can sustain or improve on this level of return

Simply Wall St -

Can HomeTown Bankshares Corporation (NASDAQ:HMTA) Survive The Next Financial Crisis?

Today we will be measuring HomeTown Bankshares’s financial risk position by looking at three leverage and liquidity metrics. … Though banks are required to have a certain level of buffer to meet its capital requirements, HomeTown Bankshares’s leverage level of 11x is significantly below the appropriate ceiling of 20x. … Relative to the prudent industry loan to deposit level of 90%, HomeTown Bankshares’s ratio of over 92.27% is higher, which puts the bank in a risky position as it borders negative liquidity disparity between loan and deposit levels.

Simply Wall St -

HMTA Company Info

Description

HomeTown Bankshares Corporation operates as the bank holding company for HomeTown Bank that provides retail and commercial banking products and services in the United States. It offers various deposit products, such as checking accounts, savings and time deposits, daily money market accounts, longer-term certificates of deposit, and individual retirement accounts. The company’s loan portfolio includes commercial loans comprising secured and unsecured loans for working capital consisting of inventory and receivables; business expansion loans, such as real estate acquisition and improvement loans; and loans for the purchase of equipment and machinery. It also offers consumer loans and lines of credit comprising secured and unsecured loans for financing automobiles, home improvements, education, and personal investments; fixed and floating-rate mortgage loans; and real estate construction and acquisition loans, as well as consumer residential mortgage loans. In addition, the company offers investment products and financial advisory services; insurance products and services; private banking services; and safe deposit boxes, traveler’s checks, direct deposit of payroll and social security checks, automatic drafts for various accounts, overdraft protection, check cards, credit cards, and merchant card services, as well as Internet banking services, such as online bill pay and mobile banking services. Its market area primarily consists of the City of Roanoke, Roanoke County, and the City of Salem, Virginia; and contiguous counties, including Botetourt, Bedford, Franklin, and Montgomery, Virginia. As of March 30, 2018, the company provided its products and services through six locations in Virginia. HomeTown Bankshares Corporation was founded in 2004 and is headquartered in Roanoke, Virginia.

Details
Name: HomeTown Bankshares Corporation
HMTA
Exchange: NasdaqCM
Founded: 2004
$83,228,720
5,816,123
Website: http://www.hometownbank.com
Address: HomeTown Bankshares Corporation
202 South Jefferson Street,
Roanoke,
Virginia, 24011,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM HMTA Common Shares Nasdaq Capital Market US USD 26. Sep 2007
OTCPK HMTW Common Shares Pink Sheets LLC US USD 26. Sep 2007
Number of employees
Current staff
Staff numbers
97
HomeTown Bankshares employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/02 00:23
End of day share price update: 2019/03/29 00:00
Last earnings filing: 2019/03/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.