Is Reliant Bankcorp (RBNC) stock a good buy?

• Founding: Reliant Bank was established in 2006 in Brentwood, Tennessee, aiming to provide personalized banking services to its local community.
• Growth Strategy: Focused on organic growth and strategic acquisitions to expand its market presence and diversify its service offerings.
• IPO Milestone: Went public in 2015, trading on the NASDAQ under the ticker symbol “RBNC,” enhancing its capital base and growth potential.
• Acquisitions: Acquired Community First, First Advantage Bank, and Tennessee Community Bank Holdings to broaden its reach and customer base.
• Community Focus: Maintained a strong focus on serving local communities with a range of banking services including commercial banking, personal banking, mortgage lending, and wealth management.
• Technological Advancements: Invested in digital banking solutions to improve customer experience, including online and mobile banking platforms.
• Rebranding: Rebranded from Commerce Union Bancshares to Reliant Bank in 2017, aligning the corporate identity with its expanding footprint.
• Customer-Centric Approach: Emphasized personalized customer service, building strong relationships with individuals and businesses in its service areas.
• Strong Financial Performance: Achieved consistent financial growth and stability, demonstrating solid performance in the regional banking sector.
• Merger with United Community Banks: In 2021, Reliant Bancorp announced a merger with United Community Banks, Inc., aiming to create a larger, more competitive banking institution.

Reliant Bankcorp’s history showcases strategic growth through acquisitions, a strong community focus, and a commitment to enhancing banking services and customer satisfaction.

2. MOS (Margin of Safety)

When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.

• Summary: watch
• Score: 56/100
• MOS: 1%

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3. Meaning

When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.

Here is how Reliant Bankcorp (RBNC) makes money:

• Interest Income: Earns money from interest on loans provided to individuals and businesses, such as mortgages, personal loans, and commercial loans.
• Service Charges: Generates revenue from fees charged for various banking services, including account maintenance, overdraft fees, and transaction fees.
• Investment Income: Gains from investments in securities and other financial instruments.
• Loan Origination Fees: Charges fees for processing and originating new loans.
• Deposit Fees: Earns fees from deposit accounts, such as checking and savings accounts, including ATM fees and account management fees.
• Wealth Management: Provides financial advisory and wealth management services, earning fees based on assets under management.
• Mortgage Banking: Generates income from originating and servicing mortgage loans, including selling mortgage loans to secondary markets.
• Treasury Management: Offers treasury management services to businesses, earning fees for cash management, payment processing, and other related services.

Here are a few of the other companies that Reliant Bankcorp has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.

• Tennessee Community Bank Holdings, Inc.
• Commerce Union Bancshares
• First Advantage Bank
• Community First, Inc.
• Mount Juliet’s Community Bank & Trust

4. Moat

When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how AMC Theatres (AMC) stacks up against other companies.

1. IMAX Corporation. (IMAX) – 89
2. Cinemark Holdings, Inc. (CNK) – 72
3. Bowlero Corp. (BOWL) – 67
4. Live Nation Entertainment, Inc. (LYV) – 67
5. Lions Gate Entertainment Corp. (LGF-B) – 61
6. AMC Entertainment Holdings, Inc. (AMC) – 56

To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.

5. Management

When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.