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Merchants
Case Synopsis
This case relates to a groaccount the capital issues, compthat the regulatory authorities wi
The case is set in a colleareas of the nation. Even duringnominal downturns.
Students are asked to detproposed capital, and to determiplanning and market effort that sbank. They will need to evaluat
Keywords: Bank charter, Banki
Journal of Business Cases
Merchants bank (in orga
ank (in organization): a case stu
James B. BexleySam Houston State University
Bala ManiamSam Houston State University
p of organizers attempting to charter a bank. Ititive issues, and demographic issues that impall allow the charter of the bank.e town that is one of the fastest growing metrothe current economic downturn, the market has
rmine if the market can support a new bank, toe the type charter to seek. Additionally, they n
hould be used to ensure that the community wilthe age groups to target and the strategies to e
g, Case, Capital, Management
and Applications
nization), Page 1
y
takes intot the likelihood
olitan statisticalhad only
evaluate theed to type of
l accept the newploy.
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INTRODUCTION
Frank Thompson and theindustry as a financial intermedimethods of bank management.
skills since the financial servicesbranching into non-banking relatbanking. These financial congloin the middle of this new wave pbanks.
Thompson has convincedcommunity bank that can give thin the Franklin County market. Tmarket that it proposes to serve.extremely successful, and at the
Merchants Bank will be
pro-rata shares of the banks capstock will be sold to interestedwork, and a desire to be a part oto align the goals of the ownersbank officers to own shares in thbuilding a successful and profita
PROPOSED GEOGRAPHIC
The metropolitan statistibetween two of the states largeswithin a 200-mile radius of Amh
The proposed location ofcenter in Amherst at the interseclends itself to high traffic and exhave seen the majority of growthNew retail establishments have rand the potential to attract custodowntown areas.
This proposed site is veraccess to members of the commnear upscale housing developmegrowth opportunities in the area.located one mile from the propocomplex. This complex is targetbuildings, the development of aunderway. Each of these new de
Journal of Business Cases
Merchants bank (in orga
business associates he has identified believe thry can be run in a more efficient manner than this means developing core competencies and f
industry is becoming increasingly competitive.ed activities and other financial firms are tryingmerates will survive and some will even thrive.roviding quality service has lost its luster for a l
a group of investor friends that the Amherst me personalize customer service that is missing fhe name Merchants Bank has been selected toEntry into this rapidly growing market has the
same time, has some possible risks.organized by ten leading community members.
ital stock varying as to the amount of contributianagement who have an entrepreneurial spirit,a business with great potential. The organizatiith the management and employees. Allowing
e bank is expected to keep them focused on theble community bank.
OCATION
al area (MSA) of Amherst is situated in the ct cities. Approximately 70% of the states popuerst.Merchants Bank is adjacent to a newly develoion of two major thoroughfares. This locationellent commercial access for several reasons.in Amherst focused in the area near the locatioalized the ease of access offered by the two mers passing through who would probably not v
well located within the target market area provnity. The target location is in a fast growing b
nts. Other businesses have apparently taken noThe Physicians Center and Amhersts major
ed bank site. Also, under construction is a 600ed at young professionals. Along with the comew golf course and upscale residential commuvelopments shows the vitality of the proposed s
and Applications
nization), Page 2
t the bankingaditionalcusing on these
Banks areto get intoBut somewhere
arge number of
rket is ripe for aom most banksreflect theotential to be an
Each will own
n. Additionalwillingness tonal strategy isthe front linetask at hand,
nter of an arealation is located
ed shoppings attractive andhe past 10 years
n for the bank.jor highwaysenture into the
iding convenientsiness area andice of theospital isnit apartmentercial
ity is currentlyite for the bank.
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PHYSICAL FACILITIES
Merchants Bank would l
on a major thoroughfare. If themodular building for six monthsOne of the keys to anticipated suMost of the processing duties anbank will have a web site but wilwill employ a low cost/high servconstrained by physical banking
MARKET ANALYSIS
The market area for Fran
an economic vibrancy surpassinfigures for the Amherst area indihas an enrollment of almost 45,045,000 over the last 4 or 5 years.at about 150,320. This is an ann1.90% is expected through 2011.
Unemployment rates inreported unemployment of 6.2%and 1st in the state. The national
Median household incomother MSAs. This can be largelto the total population. Althougaverage, a large percentage of ththat would thus be reflected in thdisposable incomes from the stuin these numbers. This has a vergreater lengths later in the analynational average is $27,203.
The single-family residethe Amherst economic market.sustained growth in this industrysubstantial decline in constructiodecreased the absolute dollar valincreased at an average annual r2010 data show a decrease of 5.this year, the overall numbers re$111,500, well below the nation
Retail and commercial acTotal retail sales in this area havin all industries have averaged a
Journal of Business Cases
Merchants bank (in orga
ease 6,000 square feet of space in a three-story
ank is successful in obtaining its charter, it wowhile the build out is completed in the permaneccess will be the ability to operate with minima
back office work will be out-sourced to a thirl not initially employ Internet banking capabilitice brand of banking. Many consumers are no lbarriers.
klin Bank has experienced high growth, low un
state and national averages for the past 10 yeacate a strong growth in baseline population. .00 full time students. These numbers have ranThe current population of the Amherst area haalized increase of 2.38% since 1996. A growt(See Exhibits I, II, III, and IV.)
mherst are among the lowest in the nation. theduring August 2010. This ranks 3rd among Maverage was 9.8% in August.
e of $24,483 for Amherst is relatively low wheattributed to the large population of students inthe entire student population of 44,000 is not fstudents are. Many of these students work sig
is median family income number. The large aents from various sources such as parents also
y positive impact on this economy and will beis. The state median household income is $32,
tial development and construction segments arow interest rates and favorable market conditithroughout the area, while nationally there hasn. Although the numbers of residential buildinues of those permits have remained strong. Thite of 11.89% since 1995 while the trailing 129%. Despite the evident slow down in new hoain quite strong. the median home price in th
l average of $133,300.tivity remain a large part of this growing econoaveraged 7.24% annual growth since 1990 wh
7.68% annual gain. The trend throughout the 2
and Applications
nization), Page 3
building located
ld open in ant building.overhead.party. The
ies. The bankonger
mployment, and
s. Populationtate Universityed from 41,000-s been estimated
rate of about
Amherst MSAAs nationally
compared tothe area relative
actored into thisnificant hoursounts ofre not reflectediscussed in43 and the
a large part ofns have led to abeen a
permits haves amount hasonths of Auguste constructionmarket is
mic market.ile the total sales00s has been
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less reliance on retail trade as adiversification in the local markecommercial, healthcare, and finacontribute to the vitality of theselocation is Oak Mall. Built in th
stores. Much of the local econoenrollment of around 45,000 stu27,710 employees. As previouslhas an adverse impact on the perdisposable income into the localaid from parents, loans, or finanestablishments and also supportsstaff, and faculty is tremendous.
COMPETITIVE ENVIRONM
The local competitive ensavings/thrift institutions with aExhibit I. Other financial institucompetitive within the market arcompetition will be the three locoperating styles and performanclocal market. An analysis of theand total deposits of $820 millioThompson expects his new bankthe first two years of operation.
Net interest margins for ttwo competitors in return on assNational appears to be the mostdeposits of 52%. In addition, nebank has collected more than theFirst Bank leverages their assetsoverall profit.
The competition in thisother banks, they must also comtraditional brokerage firms, interother sources of competition thaMerchants Bank cannot competmarketplace. The ability to diffeservice will have a great impact i
PLANNED STRATEGIES
Thompson and his associfrom the residents and businesse
Journal of Business Cases
Merchants bank (in orga
ercentage of total sales in Amherst. This showtplace. The area has also become an economicncial activities. Residents from the surroundinindustries. Approximately one mile south of thlate 1980s the mall is comprised of approxima
y is influenced by State University. Along witents the University is also the areas largest emy mentioned although the large population of ccapita income in the area they also bring a largeconomy. The majority of the college studentsial aid. Much of this money is spent in variousthe local real estate market. The direct impact
ENT
ironment consists of eight commercial banks aotal of 37 branches in Franklin County which ations such as credit unions and brokerage businea. Thompson feels that Amhersts Banks moslly chartered community banks due to the simi. The community banks have captured roughlye three banks as of 4/30/10 shows total loans ofor a combined loan to deposit ratio of approx
to reach a loan to deposit ratio of approximatel
he three banks range from 3.3% to 4.5%. Firstts and return on equity at 1.4% and 18% respeconservative bank with risk weighted capital ofcharge-offs have been negative over the last t
y have charged off during these periods. Overatighter than their competitors and thus earns a b
arket is very intense. Not only do banks have tete with other non-bank financial intermediarie
net brokerage and banking, insurance companiebanks have traditionally not had to consider ashead to head with each of the institutions that
rentiate business strategies and provide customn a community the size of Amherst.
ates expect 75% of its business for Merchantss within the ten mile radius of the proposed loca
and Applications
nization), Page 4
an increasinghub for retail,counties
e proposedtely 100 retail
h the currentployer withllege studentsamount of
are supported byretailof the students,
d fourre shown insses are alsodirect
arities in45-50% of the$600 million
imately 73%.60 - 75% after
ank leads thetively. Second18% and loan too years, as thell it appears thatetter return to
o compete withs such ass, and numerouscompetitors.are in thisrs superior
ank will betion during the
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first five years of operation. Altgeographic area, the population100,000 people reside within thethe banks marketing strategiesdepository accounts.
The organizers have diveindividuals will initially contactrelationships. Each of the ten orduring the first full year of operawill join the bank from competitbanks if they are inclined to movSeveral successful officers haveownership in the new entity. Intreceived. Merchants Banks gosoliciting new business within thindividualized high personal ser
duties as will be economically pthey do best, interacting with cuneeds. Attempting to hire the beadvance this goal. Regular bonuexemplary customer service.
BANK SERVICES
The bank will offer a fullwith a trust department and inter(ATM) on the premises, which
It is anticipated that thecommunity groups and initiate oand deposit services are most nethe banks marketing program isthe bank does expect to provide
Demand depositsTime and savings deposiCertificates of depositInstallment loansCommercial loansReal estate loansConstruction loansDrive-in services with exBank by mailRemote captureNight depositoryCashier checksSafety deposit boxes
Journal of Business Cases
Merchants bank (in orga
ough the defined market area constitutes a reland economy are significant. According to theten mile area around the proposed location. Thill ensure the success in securing necessary fun
rse business interests as lifelong citizens of thebusinesses and individuals seeking to start depoanizers has set a goal of attracting $1,000,000
tion. Another source of deposits will be the bars. They will have access to current customers
e these relationships and follow the officers to tagreed to join the new bank with the prospect orest in this type of employee ownership has be
al will be to allow these officers to spend moste community and retaining current customers bice. This will go along with the plan for outso
ssible. The bank wants its employees concentrtomers and helping them fill all of their businest customer service representatives in the commses and rewards will be given to employees wh
range of banking services, except for those sernet banking. The bank will have an automatedill be a part of a major ATM network.anagement of the bank will conduct surveys,her investigations to identify specifically whicded in the community to be served. Althoughexpected to target the local residential and comfull range of credit and deposit services, such
s
panded hours
and Applications
nization), Page 5
ively small010 census overe organizers andding of
ommunity. Thesitoryn depositsk officers thatat existinghe new bank..gaining partialn very wellf their timeproviding
rcing as many
ating on whats and consumernity willexhibit
ices associatedeller machine
eet withtypes of credit
he emphasis ofmercial market,s the following:
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LENDING AND INVESTME
The loan policy drafted bconsumer environments. It reprallocation of the banks resource
foundation for sound portfolio mnature yet provide prudent proteshould strive to seek diversity aInitially, the bank will receive asparticipations until the bank is aloans originations because theyof the future loan portfolio willoffering a full spectrum of loan
The target asset-liabilitydeposit ratio, 90% earning asset
PROPOSED CAPITAL STRAThe organizers and prop
an adequate amount of capital toMarket. Thompson and the otheinformed that bank regulators hasupport their five year growth anlarge population market who tolcapital in large metropolitan areaget by with approximately $6adequate capital
FIVE YEAR PLAN
At the end of a five year$2,031,390, total assets of $76,6$63,060,000, and total equity ca
QUESTIONS TO BE ANSWE1. Can the anticipated market ar2. Is the amount of capital prop3. What regulatory approval is n4. What type charter should the5. What type of planning and m
accept the new bank?6. What age groups should the b7. Discuss the strategies propos
likelihood of that they can be
Journal of Business Cases
Merchants bank (in orga
T STRATEGIES
y organizers addresses the needs of both the locsents managements general direction as to thes. The policies main objectives are to provide
anagement while seeking to invest in assets thation to the shareholders and depositors. The loong the types of loans in relation to the total lo
sistance from the Bankers Bank who will proviself-supporting entity. This organization will alill buy or broker loans. After this initial start-
riginate through relationship banking with theroducts.ix proposed by the organizer includes a 60 - 7
ratio, and rate sensitive ratio between 0.8 and 1.
TEGIES
sed shareholders strongly believe that $6 milliosupport a new bank charter in the Bryan/Collegr organizers met with government regulators reve become more concerned about start-up bankd cover possible loan losses. Jon Jackson talkehim that they were requiring a minimum of $2
s. The organizers had heard that communities to $8 million in capital. Now they are not sure i
eriod, the bank expects to have cumulative net1,466, total deposits of $68,000,000, total loanital of $8,181,391. (See Exhibit VI for key rati
ED
a support a new bank?sed by the organizers adequate?eeded to start up a new bank?pursue?rket effort should be used to ensure that the co
ank seek to target?ed by the bank, and indicate your opinion concsuccessfully implemented.
and Applications
nization), Page 6
al business andscope and
functional
are profitable inan portfolioan portfolio.e loan
so allow largep period, mostustomer base by
% loan to2.
n is more thane Stationently and werebeing able toto a banker in a
0 million inheir size couldf they have
income ofs ofos and data.)
munity will
rning the
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8. Should the regulatory authori9. What specific strategy does tthe competition?10. When will the bank be profit
cumulative net income stan
11. What three industries shoul
FRANKLIN
Institution
First Bank, SSB
Second National Bank
Guaranty Bank
Dial Bank
Bank of the U. S.
First Federal Savings Bank
Amherst State Bank
Planters & Merchants
Amherst National Bank
Newton Mutual Bank
Franklin County Bank
Barnes Bank
Totals
Journal of Business Cases
Merchants bank (in orga
ies approve a charter for Merchants Bank groue group of organizers believe will set their ban
able from a net income standpoint and also fropoint?
the bank target from a market standpoint?
EXHIBIT ICOUNTY FINANCIAL INSTITUTIONS
Data as of 4/30/10
Type Deposits ($000) Marke
Savings/Thrift 466,082
Commercial 265,662
Savings/Thrift 160,413
Commercial 95,715
Commercial 95,174
Savings/Thrift 74,447
Commercial 68,207
Commercial 47,258
Commercial 20,834
Savings/Thrift 16,314
Commercial 967
Commercial 428
1,311,501
and Applications
nization), Page 7
p?apart from
a
t Share
35.54%
20.26%
12.23%
7.30%
7.26%
5.68%
5.20%
3.60%
1.59%
1.24%
0.07%
0.03%
100.00%
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Total Population by Age
All Ages
Age 0-19
Age 20-24
Age 25-34
Age 35-44
Age 45-54
Age 55-64
Age 65-74
Age 75-84
Age 85 & Up
Percent of Total Pop. by Age
Age 0-19
Age 20-24Age 25-34
Age 35-44
Age 45-54
Age 55-64
Age 65-74
Age 75-84
Age 85 & Up
Median Ages
Median Age-total
Median Age-female
Median Age-male
Population by Gender
Percent Population-FemalePercent Population-Male
Population by Race
Percent Population-White
Percent Population-Black
Percent Population-Other
Journal of Business Cases
Merchants bank (in orga
Exhibit IIPopulation Age Report
As of 4/30/10
County State County Rank
136,840 20,335,750 35
42,557 6,385,426
28,326 1,504,846
18,747 2,785,998
16,558 3,253,720
13,000 2,663,983
7,389 1,667,532
5,200 1,138,802
3,695 691,416
1,232 244,029
31.1% 31.4% 101
20.7% 7.4% 113.7% 13.7% 37
12.1% 16.0% 242
9.5% 13.1% 264
5.4% 8.2% 264
3.8% 5.6% 261
2.7% 3.4% 247
0.9% 1.2% 248
0.0 0.0 246
25.3 33.4 266
24.6 31.0 262
48.90% 50.70% 23051.10% 49.30% 266
82.50% 84.10% 215
12.20% 12.30% 77
5.20% 3.50% 11
and Applications
nization), Page 8
Percentile
87%
62%
100%86%
9%
1%
1%
2%
8%
7%
8%
0%
2%
14%0%
20%
71%
96%
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Total Employment by Sector
All Industries
Agriculture
Mining
Construction
Manufacturing
Transportation & Utilities
Wholesale
Retail
Financial Services
Services
Government
Employees per 100 HouseholdsAll Industries
Agriculture
Mining
Construction
Manufacturing
Transportation & Utilities
Wholesale
Retail
Financial Services
Services
Government
Percent of Total EmploymentAgriculture
Mining
Construction
Manufacturing
Transportation & Utilities
Wholesale
Retail
Financial Services
Services
Government
Journal of Business Cases
Merchants bank (in orga
Exhibit IIIEmployment Report
As of 4/30/10
County State County Rank
90,486 12,063,945 23
2,562 416,477 41
1,346 249,586 30
4,283 728,190 26
4,408 1,148,084 40
1,974 653,461 35
1,907 578,210 34
16,011 1,998,603 24
4,659 933,509 28
23,037 3,651,945 26
30,299 1,705,880 10
177.98 162.71 104
5.04 5.62
2.65 3.37
8.42 9.82
8.67 15.48
3.88 8.81
3.75 7.80
31.49 26.96
9.16 12.59
45.31 49.25
59.60 23.01
2.83% 3.45%
1.49% 2.07%
4.73% 6.04%
4.87% 9.52%
2.18% 5.42%
2.11% 4.79%
17.69% 16.57%
5.15% 7.74%
25.46% 30.27%
33.48% 14.14%
and Applications
nization), Page 9
Percentile
92%
85%
89%
91%
85%
87%
88%
91%
90%
91%
97%
61%
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Income Data
Income Per Capita
Mean Household Income
Median Household Income
% HH w/Income $0-$24,999
% HH w/Income $25,000-$49,999
% HH w/Income $50,000-$74,999
% HH w/Income $75,000-$99,999
% HH w/Income over $100,000
Earnings (in thousands)
All Industries
Agriculture
MiningConstruction
Manufacturing
Transportation & Utilities
Wholesale
Retail
Financial Services
Services
Government
Percent of Total Earnings
Agriculture
Mining
Construction
ManufacturingTransportation & Utilities
Wholesale
Retail
Financial Services
Services
Government
Retail Sales (in thousands)
All Segments
Building Materials and Hardware
General Merchandise
Food Stores
Auto Dealers
Gasoline Service Stations
Apparel and Accessories
Furniture and Furnishings
Eating and Drinking Places
Drug Stores
Miscellaneous
Journal of Business Cases
Merchants bank (in organ
Exhibit IVIncome & Spending Report
As of 4/30/10
County State County Rank
$20,182 $26,439 168
$50,242 $71,120 188
$24,483 $32,643 152
50.7% 39.3% 119
26.3% 31.9% 237
12.6% 15.8% 127
5.2% 6.6% 70
5.2% 6.5% 50
$2,169,460 $408,493,880 37
$19,450 $5,611,370 81
$37,890 $14,837,210 47$121,290 $24,758,990 37
$144,230 $61,895,840 59
$67,810 $35,708,590 51
$59,770 $27,295,800 45
$236,410 $36,287,120 37
$111,100 $31,736,010 37
$554,080 $115,380,940 36
$817,440 $54,982,010 23
0.90% 1.37%
1.75% 3.63%
5.59% 6.06%
6.65% 15.15%3.13% 8.74%
2.76% 6.68%
10.90% 8.88%
5.12% 7.77%
25.54% 28.25%
37.68% 13.46%
$1,472,220 $212,247,360 25
$77,070 $9,881,940 25
$297,470 $31,405,010 20
$232,730 $36,401,100 26
$335,290 $55,651,970 27
$69,330 $12,097,380 37
$56,220 $9,899,820 27
$65,960 $11,435,960 23
$161,160 $21,610,880 22
$22,270 $6,435,480 40
$154,720 $17,427,810 19
and Applications
ization), Page 10
Percentile
37%
30%
43%
56%
11%
53%
74%
82%
86%
70%
83%86%
78%
81%
83%
86%
86%
87%
92%
91%
91%
93%
91%
90%
86%
90%
92%
92%
85%
93%
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Income Dispersion by Age
% HH Age 15-24 w/Income $0-$25K
% HH Age 15-24 w/Income $25-$50K
% HH Age 15-24 w/Income $50-$75K
% HH Age 15-24 w/Income $75-$100K
% HH Age 15-24 w/Income $100K+
% HH Age 25-34 w/Income $0-$25K
% HH Age 25-34 w/Income $25-$50K
% HH Age 25-34 w/Income $50-$75K
% HH Age 25-34 w/Income $75-$100K
% HH Age 25-34 w/Income $100K+
% HH Age 35-44 w/Income $0-$25K
% HH Age 35-44 w/Income $25-$50K
% HH Age 35-44 w/Income $50-$75K% HH Age 35-44 w/Income $75-$100K
% HH Age 35-44 w/Income $100K+
% HH Age 45-54 w/Income $0-$25K
% HH Age 45-54 w/Income $25-$50K
% HH Age 45-54 w/Income $50-$75K
% HH Age 45-54 w/Income $75-$100K
% HH Age 45-54 w/Income $100K+
% HH Age 55-64 w/Income $0-$25K
% HH Age 55-64 w/Income $25-$50K
% HH Age 55-64 w/Income $50-$75K
% HH Age 55-64 w/Income $75-$100K
% HH Age 55-64 w/Income $100K+
% HH Age 65-74 w/Income $0-$25K% HH Age 65-74 w/Income $25-$50K
% HH Age 65-74 w/Income $50-$75K
% HH Age 65-74 w/Income $75-$100K
% HH Age 65-74 w/Income $100K+
% HH Age 75+ w/Income $0-$25K
% HH Age 75+ w/Income $25-$50K
% HH Age 75+ w/Income $50-$75K
% HH Age 75+ w/Income $75-$100K
% HH Age 75+ w/Income $100K+
Journal of Business Cases
Merchants bank (in organ
Exhibit VIncome Dispersion Report
As of 4/30/10
County State County Rank
85.4% 67.7% 20
12.4% 26.9% 242
1.8% 4.3% 169
0.2% 0.8% 128
0.2% 0.5% 97
49.3% 39.9% 92
33.0% 38.0% 210
12.8% 14.7% 117
3.2% 4.7% 94
1.7% 2.8% 113
27.2% 28.0% 199
35.2% 35.2% 172
21.4% 20.7% 618.8% 8.5% 46
7.5% 7.6% 36
24.1% 25.0% 216
31.6% 30.2% 167
20.1% 21.6% 115
10.4% 10.9% 51
13.8% 12.3% 27
29.1% 35.1% 236
26.1% 30.5% 231
18.7% 17.0% 42
11.6% 7.9% 5
14.6% 9.5% 7
49.6% 52.8% 22326.3% 28.5% 136
12.8% 10.3% 25
5.0% 3.9% 32
6.4% 4.6% 29
68.7% 70.2% 209
17.2% 19.9% 118
5.9% 5.3% 53
5.0% 2.0% 4
3.2% 2.6% 52
and Applications
ization), Page 11
Percentile
93%
9%
37%
52%
64%
66%
21%
56%
65%
58%
26%
36%
77%83%
87%
19%
38%
57%
81%
90%
12%
14%
85%
98%
98%
17%49%
91%
88%
89%
22%
56%
80%
99%
81%
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PROFITABILITYNet IncomeCumulative Net IncomeROA (Annualized)ROE (Annualized)
MARGINSNet Interest IncomeAvg. Yield Earning AssetsAvg. Cost of FundsInterest Rate Spread
Net Int. Margin/Earn AssetsLIQUIDITYLoans/Deposits (EOY)Liquid Assets/Deposits
MIXEarning Assets/Tot. AssetsDemand/Total Deposits
CAPITAL ADEQUACY (EOY)Equity/AssetsPrimary Cap/Assets
YIELDS
Commercial LoansInstallment LoansTotal Loans (Wt. Avg.)U. S. Treasury & AgenciesMunicipal BondsCertificates of DepositTotal Investments (Wt.Avg)Savings, NOW, MM AccountCertificates of DepositTotal Int. Bearing (Wt. Avg)
SIZE (EOY)Assets 25Deposits 20Total Loans 16Reserve for Loan LossesTotal Equity 5
Journal of Business Cases
Merchants bank (in organ
Exhibit VIFive Year PlanAs of 4/30/10
Year 1 Year 2 Year 3 Year 4
-578,582 -37,957 634,253 986,378-928,582 -966,539 -332,285 654,092
-2.68% -0.12% 1.41% 1.71%-11.08% -0.73% 10.90% 14.50%
627,679 1,297,170 1,948,696 2,588,2804.30% 6.07% 6.23% 6.43%1.33% 1.89% 1.83% 1.86%2.91% 4.10% 4.33% 4.49%
2.98% 4.18% 4.40% 4.56%
80.10% 97.02% 91.39% 93.84%35.74% 13.40% 16.71% 14.04%
90.53% 93.53% 94.24% 94.38%15.00% 18.46% 17.39% 17.86%
20.61% 13.68% 11.16% 10.76%20.61% 13.68% 11.16% 10.76%
4.88% 6.86% 6.75% 6.99%7.16% 8.52% 8.51% 8.76%4.98% 6.95% 6.83% 7.07%7.16% 8.52% 8.51% 8.76%0.00% 0.00% 0.00% 0.00%0.00% 0.00% 0.00% 0.00%7.16% 8.52% 8.51% 8.76%0.57% 0.70% 0.70% 0.70%1.37% 2.36% 2.38% 2.42%1.52% 2.28% 2.23% 2.26%
,331,448 37,878,461 52,117,715 63,214,093,000,000 32,500,000 46,000,000 56,000,000,020,000 31,530,000 42,040,000 52,550,000-236,749 -457,440 -609,580 -746,210,221,448 5,183,461 5,817,715 6,804,092
and Applications
ization), Page 12
Year 5
1,377,2982,031,390
1.97%16.83%
3,149,3746.44%1.88%4.50%
4.57%
92.74%15.33%
94.65%17.65%
10.67%10.67%
6.98%8.76%7.06%8.76%0.00%0.00%8.76%0.69%2.45%3.54%
76,681,46668,000,00063,060,000
903,8608,181,391
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