Community Bank Valuation

Key Considerations in the Valuation of Banks and Bank Holding Companies

This whitepaper focuses on the two issues most central to our work with depository institutions at Mercer Capital:

  • What drives value for a depository institution?
  • How are these drivers distilled into a value for a given depository institution?

In this whitepaper, we dive into the more technical valuation issues, but at its core, value is a function of the following:

  • A specified financial metric or metrics
  • Growth
  • Risk