ever trust
TRANSCRIPT
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EverTrust Bank Valuation
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Options of Synergy
y Better Product Mix
y Efficiency of Operations with Integrated IT
y Economies of Scale (Reducing Cost of Funding)
y Closing Down of Duplicate Branches or Processesy Market Penetration
y Growth Opportunity
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Details ofOperating Area
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Structure of Valuation
y Areas of Consideration
y Assets
y Investments
y Owned Buildings and Leases
y Cash & Cash Equivalents
y LoanAdvances
y Liabilities
y Deposits
y
Equity Capitaly Borrowings
y Salaries and Compensation
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Area of Considerationy Branches
Ever Trust Bank Branches Wells Fargo Branches
Main Office -2707 ColbyAve Ste 600 - Everett 2801 WetmoreAve Everett
Madison Branch 6726 Evergreen Way Everett 7502 EvergreenWay Everett
Marysville Branch -1300 State St Marysville 1226 StateAve Marysville
Silver Lake Branch -1902 100th St Se Everett 1801 Broadway Everett
Snohomish Branch - 1325Ave D Snohomish 1219 13th St Snohomish
Monroe Branch -Main & Woods Monroe 19501 State Rte 2 Monroe
Lake Stevens Branch -633 Hwy 9 Lake Stevens 1901 Main St Lake Street
Arlington Branch -535 N Olympic Arlington
North CreekBranch-18001 Bothell Way Bothell 22707 Bothell Everett Hwy Bothell
Admin Office -2707 ColbyAve Ste 715 Everett 2801 WetmoreAve Everett
One Convention Place Branch -701 Pike St Ste 2250 Seattle 102 Pike St - Seattle
Stanwood Branch -26606 72ndAve NW Stanwood 9916 270th St Nw Stanwood
Bellevue Branch - 11000 Ne 10th St Bellevue 225 108th Ave Ne - Bellevue
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Areas of Consideration
y Overlapping Functions and Processes and Associated
Employee Roles
y Impact on Non Interest Income from Closed Down Processes
and Branches.y Impact on Interest Income from Closed Down Branches.
y Reduction in Interest Expense due to Shifting of Deposits
and Consolidation Process.
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Important Detailsy 10K ofWells Fargo is non downloadable but present at the following site
y https://www.wellsfargo.com/pdf/invest_relations/filings/10K2001.pdf
y Cost Savings projected at 28% post consolidation assume the following which maybe debatable
y Data Processing Expense would go down by 30%
y Though no Building or Leasing Expense is reduced there is reduction in operating expenseofTravel and Parking Expense
y Though Asset Quality Ratios are declining the Allowance for loan losses has beendecreased.
y The Construction business has the highest CAGR but the loan portfolio distribution
is weighed towards to more modest growth areas having 3 times lesser CAGR.
y The Exposure to its 2 most largest loans is 100% (viz. Garden Court RetirementBuilding and Little Prairie Center LLC and both were disbursed in past 3 monthduration)
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Ever Trust Strategy Till Now
y
In 1999, Mutual Bancshares, the predecessor to EverTrustFinancial Group developed a long term strategic plan to transformitself from a community based thrift into a diversified financialservices company .
yIncreasing the percentage of revenues from non interest incomeand make it more diversified.
y In 2001, launched EverTrust Asset Management.
y Prudent management of excess capital through repurchase.
y Demands a price premium (expertise in each of its three businesslines)
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EverTrust Bank
Commercial
Real Estate
Group
Private Client
Group Retail
BankingGroup
Portfolio
Real EstateLending
Commercial
MortgageBanking
Business
Banking
EverTrust
Asset
Management
Private
Banking Retail
Branches
Brokerage
Services
Customer
CareCenter
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Assumptions for Valuation
y Assumptions made in the offering memorandum have been
assumed to be correct representation of cost expense and
cost savings.
y
Growth Rate 3% based on U.S. GDP Growth Rate(Assumed a Stable Growth Model)
y The Increase in Interest and Non Interest Income and
Expense has been explained in the Excel Sheet
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Thank you