Small community bank for $1.3million. One of the smallest community bank in US.
Bank has less than $1M equity capital and assets are around $10m.
So, basically the ownership is looking for $300k premium to book value.
One of the best opportunity in USA.
Community bank what is profitable and also management in place.
Great opportunity to enter community banking in USA.
Smallest Bank for sale USA
Smallest Bank for sale USA
US- Small bank USA for sale one million eight hundred thousand-US
One of the smallest bank for sale. Value is in the charter.
Small State Chartered bank with under $8M in assets for approx. $1.8m
Sale price- $1.8m
The two worst strategic mistakes to make are acting prematurely and letting an opportunity slip; to avoid this, the warrior treats each situation as if it was unique and never resorts to formula, recipes or other people’s opinions.
In such circumstances where economic stability has to be regained in the country, many banks and financial institutions are being taken over. Consolidation is the name of the game. Weaker players are weeded out and the stronger are becoming stronger. Keeping in consideration all the hidden values of bank including its charter, the startup cost of a De Nova bank, De Nova status; it is becoming increasing common for the investors to acquire a bank rather than set up one. The multiples are low; in fact banks are going around core capital.
Some of the basic common steps to buying a bank are laid down beneath. For sure, the biggest hurdle is finding the right one. Keyfunds for sure can help in this regard. Keyfunds will help you find and identify the right bank, thrift, with the right charter. Few basic criteria come into being after recognizing the bank. This firstly includes making an offer sheet which contains all the basic terms that are required for diligence.
Secondly, employing a law firm once offer is accepted that has enough experience of similar cases is another important step. This would aid in making a definitive agreement which will go a long way during diligence process. Moreover, the law firm would be able to put across few mandatory questions like:
If the bank space is on lease or its own? What are the terms of lease in case it is rented?
Provision of three years financial statements that are audited.
Provision of terms of rates, types and maturity of loan.
Regarding deposit, the type, maturity and rates of breakdown.
The current management and board of bank. State of organization, type of organization.
Type of charter, State, federal, national
Customer’s brief description and even the shareholders’ list.
Analyzing the Capital, Management, Asset, Earning, Sensitivity and Liquidity as far as the market risks are concerned. (also known as CAMEL)
Once the Definitive Agreement is accepted, the money can come into being. The buyer is required to take a regulatory approval. This should be done within five to ten days of acceptance. In the next stage, the approval of shareholders is mandatory for the seller to take.
The best deals are those which can ensure that the management currently presiding over the bank stays there for another couple of months after closing as well. It may take time but remember that the best deals are those which are made adhering to the fundamentals and hard work.
How can small community banks add value to neighbourhood development?
“Smallthings have their own peculiar charm.”
The present US banking environment is structured in a very complex manner. Not only does it have one of the largest pool of banks, the manner of basic functioning and hierarchy is also different. On one hand we have mega banks which have profound presence across the globe and on the other hand we can find small community banks in every nook and corner of a street. Though every institute has its own importance, small community banks, over time immemorial, have carved a separate niche for themselves. Not only have they played a vital role in catalyzing the economy but also served as a safe and secure banking option to the common man.
However, we cannot deny that large banks have eaten up a considerable business of small banks over the last three decades. In such a scenario the role of small community banks has become even more crucial. In the modern day world, community banks can add a lot of value to neighbourhood development.
We know that these small community banks play a crucial role in providing small loans to customers. These loans may vary from real-estate purpose to business expansion or set-up. More often than not, these loans stretch out to double digit years and it is of paramount importance that the bank builds a strong relation with its customers to ensure a healthy symbiotic relation. By acting as role models for other financial institutes, community banks can add a lot of value towards neighbourhood development.
In the current financial times, when there is dearth of security and trust, community banks act as a beacon of hope and stability. Unlike other institutes, small community banks follow really simple practices and have a very sound functioning and management. People can count on small community banks to help them in the now. The basic structure of community banks in America has been such that they find an indomitable place in the life of people. When people see huge organisation’s falling like a pack of cards and small community banks carrying out their daily routine even in the time crisis, neighbourhood feels safer and secure that their money is in safe hands.
We have got tremendous amount of gap in financial system, which small banks can fill in the void. Overall the future of business is always organization’s ability to learn, and translate that learning into action rapidly, which is the ultimate competitive advantage.