(March 19 – 12:50 ET) – The value investing gurus at Irwin Michael’s ABC Funds continue to see good opportunity in Laurentian Bank.

ABC says that, “Amid turbulent market conditions, Laurentian Bank continues to show good relative and absolute performance.” It notes that the bank’s first quarter financial results were generally above expectations, as revenue grew 45%. The bank managed cut costs and posted a 13.3% return on shareholders’ equity. “Notably, the sustainability of these results was confirmed with a dividend increase.”

ABC also likes the bank’s credit portfolio, noting that it is not saddled with huge exposure to technology and telecommunication companies. “Laurentian Bank is largely immune from such issues because the bulk of the bank’s portfolio is made up of personal and small-business loans. Net impaired loans were essentially zero percent of total loans in the first quarter of 2001, though the loan loss provision increased to $8 million from $5 million a year ago.”

Apart from strong fundamentals at the bank, ABC also sees it as a possible takeover target. “We are quite satisfied with Laurentian’s credit quality and its recent financial performance. The bank’s profitability and growing dividends are reassuring given declining earnings and volatility across the broad market. Finally, as we’ve said before, Laurentian Bank should become one of the more attractive takeover candidates in the sector, once consolidation is given the official green light.”