Overview of Bank Valuation

•  Purpose and objectives of company valuation
•  Bank operating models and implications for valuation
•  Determining the key drivers of value estimates

Valuing Banks

• Understanding how banks make money
• Financial statement review: Key line items and management disclosures
• Evaluating the quality of the balance sheet and earnings
• Identifying key ratios
• Asset/liability structures and interest rate risk
• Understanding reserves and regulatory capital requirements

Comparable Company and Transaction Analysis

• Getting behind the numbers: Choosing appropriate peer groups
• Evaluating market conditions
• Understanding and calculating trading multiples

Comparable Transaction Analysis: A Case Study

FDIC-Assisted Transactions

Adam J. Keefer, Associate Director, Sandler O'Neill + Partners, L.P.

• Discussion of the current trends in FDIC assisted transactions and the outlook for the future
• Hands-on experience evaluating a failing institution and coming up with a bid through a simulative case study

Discounted Cash Flow Modeling and Analysis

• Estimating cost of capital and terminal values
• Recognizing key operating levers and key bets
• Estimating free cash flows to equity holders
• Sensitivity analysis
• Valuing fee-based earnings streams

Advanced Earning Analysis and Forecasting

Guest instructor:Timothy N. Coffey,Vice President, FIG Partners LLC

• Analysis of core earnings
• Techniques for normalizing earnings among companies, including how to assess and treat non-recurring earnings events
• Non-recurring gains/losses
• Aggressive/conservative accruals
• Adjusting for normalized capital structures
• Minority stake/investor's view versus control stake/whole company valuation

M&A Valuation

• Incorporating discounted cash flows modeling
• Determining a valuation range and triangulating valuation results
• Valuing synergies
• How control premiums impact multiples
• M&A transaction considerations