Valuing Financial Institutions

by Z. Christopher Mercer, FASA, CFA, ABAR

Format: E-Book (PDF)
Price: $65.00
Page Count: 673 pages
Publication Date: 1991

Valuing Financial Institutions is the first book written specifically to meet the needs of professional appraisers of financial institutions, executives in financial institutions, and the accountants, attorneys, and other professionals who serve the industry. Mercer’s Valuing Financial Institutions is a ground-breaking resource that focuses on the special issues of financial institution appraisal.

Unlike any other guide to business valuation, this book provides the facts about bank valuation principles, methodologies relating to minority interest and controlling interest values, Employee Stock Ownership Plans (ESOPs), and the impact of regulation on valuation. In addition, Mercer discusses critical merger/sale/purchase considerations, fairness opinions, core deport intangible asset and branch valuation issues, and litigation support related to valuation issues.

Valuing Financial Institutions is an essential addition to the library of every banker and business appraiser, as well as the attorneys, accountants, and other professionals who support banks and need to understand bank analysis, operations, and valuation issues.

This book is an indispensable reference for anyone involved with the valuation of a bank, bank holding company, thrift institution, thrift holding company, or other financial institution. It is the first and only comprehensive, how-to-treatise on the valuation of financial institutions written in the mainstream of business valuation theory and practice.

Virtually every bank and thrift in the national will have specific valuation requirements over the next three to five years. Valuing Financial Institutions, and essential guide for every banker, supporting bank professional, and business appraiser, shows you how to measure performance, compile data for valuation purposes, and use the knowledge gained from the valuation process to increase the value of banking institutions. Focusing on the issues which differentiate financial institutions from other types of companies, this book gives you useful checklists, tables, exhibits, and appendixes that will increase understanding and save time when the principles are applied to unique valuation situations.

With step-by-step guidance on what to do for those performing bank appraisal, or what to expect for those who must rely on them, Valuing Financial Institutions takes you from assignment definitions to the final report and includes:

  • An overview of the bank regulatory structure and the process critical to understanding the difference between banks and unregulated enterprises.
  • A how-to walk through of bank financial statement analysis with a focus on valuation implications and unique characteristics of banks.
  • A chapter on bank holding company analysis, placing emphasis on the analytical and operational characteristics of holding companies and specific issues which differ from bank-only analysis.
  • A separate chapter devoted to the valuation of thrift institutions for ordinary business purposes as well as for conversions from mutual to stock ownership.
  • An entire chapter devoted to valuation issues related to Employee Stock Ownership Plans (ESOPs)
  • A chapter on branch valuation issues, including a comprehensive discussion of core deposit intangible assets and a summary of core deposit appraisal.
  • Important how-to reference, including sample information request lists, a financial institution’s valuation interview and due diligence questionnaire, a sample bank appraisal, a sample fairness opinion, excerpts or reprints from relevant regulations, a detailed listing of bank information sources, and many other valuable reference tools.