HYNE

Hoyne is a tiny six-branch Chicago savings bank ($489M assets, ~$135M market cap on 8.10M shares) that appears to have just completed a stock conversion: stockholders' equity leapt 88% to $161M and cash jumped 210% to $47.6M in FY2025, while liabilities fell 9.8% and deposits shrank from $357M to $322M. The result is a fortress-but-idle balance sheet — equity is a remarkable ~33% of total assets (liabilities/equity of just 2.03x) — that leaves the stock trading at roughly 0.84x book ($161M equity vs. ~$135M market cap). For a thrift, below-book plus heavy excess capital is the classic setup for buybacks or eventual sale, and it caps downside.

The problem is earnings power. FY2025 net income was $233K (EPS $0.03) for a 0.1% ROE — technically a swing from FY2024's -$1.96M loss, but essentially breakeven. The P/E of 556 is meaningless at this profitability. The newly raised capital is diluting an already thin return until management deploys it into loans (loans receivable grew to $268M) or returns it. Compounding this, the balance sheet shows the AFS securities book carried at $106.7M fair value against $121.9M amortized cost — a ~$15M unrealized loss already embedded in equity, a live reminder of the interest-rate exposure MD&A flags as its headline risk.