How to buy a community bank

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A defined process of buying community banks. The presentation describes considerations for individuals or groups that are seeking to buy a bank.

Published in: Business, Economy & Finance
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How to buy a community bank

  1. 1. How to Buy a Bank <br />Step by Step Project Management of community banking M&A<br />Provided by www.OwnABank.com<br />
  2. 2. Overview<br />Process Overview<br />Identifying Stakeholders and Partners<br />What to buy – Creating Requirements Documentation<br />Due Diligence – Managing Risks<br />Pricing and Valuations Factors – Bid Management<br />Definitive Agreement considerations - Contracts<br />Funding – Financial Management<br />Regulatory Approval – Outside Risks<br />Provided by www.OwnABank.com<br />
  3. 3. Stakeholders and Business Partners<br />Identification of key stakeholders<br />Identification of key business partners<br />Legal<br />Accounting<br />Compliance<br />Management and Strategy Consultants<br />Marketing, Branding and Messaging Consultants<br />Provided by www.OwnABank.com<br />
  4. 4. What to buy<br />Identifying Targets<br />Create a comprehensive requirements document<br />Defining business needs<br />Why size matters in banking M&A<br />Understanding different Charter types<br />Sources of information<br />FDIC lists<br />Bank and Business Brokers<br />Relationships<br />Provided by www.OwnABank.com<br />
  5. 5. Conduct Due Diligence<br />Creating comprehensive DD checklists<br />Financials<br />Compliance<br />Systems, Processes and Personnel<br />Understanding FDIC CALL/TFR reports<br />Bank Financials – Balance Sheets, Income Statements, Loan Concentrations etc.<br />CAMELS rating system<br />Peer Group reviews<br />Commonly neglected items<br />Provided by www.OwnABank.com<br />
  6. 6. Community Bank Valuations<br />Understanding factors that impact bank valuations<br />Franchise or Brand Value<br />Growth rates<br />Branch Network<br />Lines of Business<br />Operating leverage<br />Understanding Multiples<br />Provided by www.OwnABank.com<br />
  7. 7. Definitive Agreements<br />Seeking Legal Help<br />What is a definitive agreement?<br />Components of a typical DA?<br />Keeping the Regulators in sight<br />Managing Risk prior to Closing<br />Provided by www.OwnABank.com<br />
  8. 8. Regulatory Approvals<br />Understanding the current regulatory landscape<br />Creating Change of Control Applications<br />New bank director considerations<br />Automatic disqualifiers<br />Biographical and financial data<br />Business Plan changes<br />Provided by www.OwnABank.com<br />

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