NasdaqGS:LEVL

Stock Analysis Report

Executive Summary

Level One Bancorp, Inc. operates as a bank holding company for Level One Bank that provides business and consumer financial services in Michigan.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Level One Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LEVL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.1%

LEVL

6.0%

US Banks

7.2%

US Market


1 Year Return

-25.3%

LEVL

-26.4%

US Banks

-10.4%

US Market

Return vs Industry: LEVL exceeded the US Banks industry which returned -26.4% over the past year.

Return vs Market: LEVL underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

LEVLIndustryMarket
7 Day-2.1%6.0%7.2%
30 Day-26.4%-24.0%-12.6%
90 Day-29.0%-38.0%-19.4%
1 Year-24.7%-25.3%-24.1%-26.4%-8.5%-10.4%
3 Yearn/a-15.8%-21.9%15.8%8.3%
5 Yearn/a13.2%0.2%35.8%21.0%

Price Volatility Vs. Market

How volatile is Level One Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Level One Bancorp undervalued compared to its fair value and its price relative to the market?

19.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEVL ($17.86) is trading below our estimate of fair value ($22.12)

Significantly Below Fair Value: LEVL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LEVL is good value based on its PE Ratio (8.6x) compared to the Banks industry average (8.9x).

PE vs Market: LEVL is good value based on its PE Ratio (8.6x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: LEVL is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: LEVL is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Level One Bancorp forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEVL's forecast earnings growth (10.2% per year) is above the savings rate (1.7%).

Earnings vs Market: LEVL's earnings (10.2% per year) are forecast to grow slower than the US market (12.2% per year).

High Growth Earnings: LEVL's earnings are forecast to grow, but not significantly.

Revenue vs Market: LEVL's revenue (11.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: LEVL's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LEVL's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Level One Bancorp performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEVL has high quality earnings.

Growing Profit Margin: LEVL's current net profit margins (25%) are lower than last year (25.2%).


Past Earnings Growth Analysis

Earnings Trend: LEVL's earnings have grown by 17% per year over the past 5 years.

Accelerating Growth: LEVL's earnings growth over the past year (10.9%) is below its 5-year average (17% per year).

Earnings vs Industry: LEVL earnings growth over the past year (10.9%) underperformed the Banks industry 10.9%.


Return on Equity

High ROE: LEVL's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is Level One Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LEVL has a low level of unsold assets or inventory.

Debt Coverage by Assets: LEVL's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: LEVL's level of assets compared to its equity is low.

Allowance for Bad Loans: LEVL has a low allowance for bad loans.

Low Risk Liabilities: LEVL's liabilities are made up of primarily low risk sources of funding.

Loan Level: LEVL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LEVL's loans are broadly funded by customer deposits.

Level of Bad Loans: LEVL has an appropriate level of bad loans (1.51%)


Next Steps

Dividend

What is Level One Bancorp's current dividend yield, its reliability and sustainability?

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LEVL's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: LEVL's dividend (1.12%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LEVL has been paying a dividend for less than 10 years.

Growing Dividend: LEVL's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.7%), LEVL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LEVL's dividends in 3 years are forecast to be thoroughly covered by earnings (9.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.6yrs

Average management tenure


CEO

Patrick Fehring (61yo)

12.67s

Tenure

US$574,276

Compensation

Mr. Patrick J. Fehring, Jr., is Chairman, President and Chief Executive Officer of Level One Bank since 2007. Mr. Fehring has been Chairman, President and Chief Executive Officer since June 2007 of Level O ...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD574.28K) is about average for companies of similar size in the US market ($USD602.37K).

Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Fehring
Chairman12.67yrsUS$574.28k2.62% $3.6m
David Walker
Executive VP & CFO10.58yrsUS$337.64k0.30% $419.1k
Gregory Wernette
Executive VP13.17yrsUS$364.16k0.32% $440.3k
Peter Root
Investor Relations Contactno datano datano data
Melanie Barrett
Executive VP & Chief Human Resources Officer2.17yrsno data0.070% $97.0k
Barbara Felts
Controllerno datano data0.089% $123.2k
Timothy Mackay
Assistant Corporate Secretary7.17yrsno data0.096% $133.2k
Eva Scurlock
Assistant Corporate Secretary13.17yrsno data0.12% $162.1k

11.6yrs

Average Tenure

57yo

Average Age

Experienced Management: LEVL's management team is seasoned and experienced (11.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Fehring
Chairman12.67yrsUS$574.28k2.62% $3.6m
Stefan Wanczyk
Lead Independent Directorno dataUS$40.50k8.44% $11.7m
James Bellinson
Independent Director13.17yrsUS$40.50k9.83% $13.6m
Michael Brillati
Independent Director12.17yrsUS$41.49k0.23% $319.8k
Thomas Fabbri
Independent Director13.17yrsUS$38.99k0.081% $112.3k
Mark Herman
Independent Director13.17yrsUS$39.74k0.48% $666.4k
Shukri David
Former Lead Director13.17yrsUS$39.99k0.045% $61.9k
Barbara Allushuski
Independent Director10.17yrsUS$38.99k0.21% $294.4k
Victor Ansara
Independent Director12.17yrsUS$41.49k0.92% $1.3m
Steven Rivera
Independent Director12.17yrsUS$38.49k0.45% $627.5k

13.2yrs

Average Tenure

60yo

Average Age

Experienced Board: LEVL's board of directors are seasoned and experienced ( 13.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LEVL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

Company Information

Level One Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Level One Bancorp, Inc.
  • Ticker: LEVL
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$138.139m
  • Shares outstanding: 7.73m
  • Website: https://www.levelonebank.com

Number of Employees


Location

  • Level One Bancorp, Inc.
  • 32991 Hamilton Court
  • Farmington Hills
  • Michigan
  • 48334
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LEVLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2018

Biography

Level One Bancorp, Inc. operates as a bank holding company for Level One Bank that provides business and consumer financial services in Michigan. It offers a range of deposit services, including checking accounts, NOW accounts, savings, other time deposits, certificates of deposit, and specialty deposit accounts. The company also provides lending products and related services comprising commercial mortgages, including construction and land development loans; commercial and industrial loans with lines of credit, term loans, and loans under the small business administration lending program; residential real estate loans; and consumer loans, including home equity loans and automobile loans, as well as credit card services. In addition, it offers cash management services, treasury management services, and mobile banking services. The company serves individuals, owner-managed businesses, professional firms, real estate professionals, and not-for-profit businesses. It operate through 14 offices, including 11 full-service banking centers located in southeastern Michigan; and two mortgage loan production office in Ann Arbor, Michigan. Level One Bancorp, Inc. was founded in 2007 and is headquartered in Farmington Hills, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 04:06
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.