Here are the Quarterly Updates on M&F Bancorp (MFBP)

Investment management company Cedar Creek Partners recently released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The market recovered in the first quarter, with the NASDAQ rising 17% compared to a 33% decline in the last quarter. At the same time Cedar Creek increased by 6.4% in the first quarter, net of fees and expenses. The firm focused on investing in microcap stocks, and over-the-counter stocks in particular. You can check the top 5 holdings of the fund to know its best picks in 2023.

Cedar Creek Partners highlighted stocks like M&F Bancorp, Inc. (OTC:MFBP) in the first quarter 2023 investor letter. Headquartered in Durham, North Carolina, M&F Bancorp, Inc. (OTC:MFBP) is a bank holding company. On July 3, 2023, M&F Bancorp, Inc. (OTC:MFBP) stock closed at $20.75 per share. One-month return of M&F Bancorp, Inc. (OTC:MFBP) was -9.11%, and its shares gained 107.50% of their value over the last 52 weeks. M&F Bancorp, Inc. (OTC:MFBP) has a market capitalization of $42.15 million.

Cedar Creek Partners made the following comment about M&F Bancorp, Inc. (OTC:MFBP) in its first quarter 2023 investor letter:

“M&F Bancorp, Inc. (OTC:MFBP) – is a North Carolina based bank with two million shares outstanding. Last summer it received $80 million of low-cost capital through the US Treasury’s ECIP. The stock ended the first quarter at $22 per share. It had reached $30 prior to the bank selloff. Our cost basis is under $12. M&F earned $0.82 per share in the fourth quarter of 2022 versus $0.51 per share in the third quarter. Most of the earnings increase was from ECIP funds being moved into shorter term treasuries earning 4-5%. Annualizing fourth quarter earnings gives a $3.25 per share earnings run rate. We expect earnings to have grown modestly in the first quarter of 2023 due to some of their loan portfolio re-pricing (i.e., existing loan rates increasing due to the prime rate being higher) faster than their cost of deposits likely increased.

A buyer today is paying 7 times earnings for a bank with the potential to see earnings double from an acquisition using the ECIP funds or steadily grow by attracting deposits and making loans. (See our 2022 third quarter letter for a more detailed discussion of ECIP recipient banks.).”

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M&F Bancorp, Inc. (OTC:MFBP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.