Bank Bid Analysis Worksheet

Bank Bid Analysis Worksheet

I will attach three files. One is the Analysis worksheet that needs to be done using information from the initial bid paper and the excel with the balance sheets and income statements. That bank im required to analys is BANK B and only bank B. Please use the information and the correct formulas to complete the analysis. I will reply to any questions.
Attachments:
application/pdf iconbank_bid_analysis_worksheet.pdf
application/vnd.openxmlformats-officedocument.wordprocessingml.document iconbanksim_initial_bid.docx
application/vnd.openxmlformats-officedocument.spreadsheetml.sheet iconeight_banks_for_salef_2017.xlsx

Bank Bid Analysis Worksheet
Bank name: _______________________________________________
Current Capital _______________ ÷ 100,000 shares = Current Price/Share ____________
Bid Price/Share _______________ X 100,000 shares = Beginning Capital ______________
Current ROE: _________________ ROE at Bid Price: _________________
Current ROA _________________
Current Performance Measures:
Assets Growth Rate _____________ Revenue Growth _______________

FINA 458 – BankSim Initial Purchase Bid Team/Bank Name ________________________
Due to a serious drought, the only country club located in Wildcat County, California has been forced to close. This disaster has led to the resignation of eight (yes, eight) local bank presidents who have chosen to relocate to Palm Springs where water is apparently not a problem. In an unprecedented move, because of these resignations, all eight banks have been put up for sale.
Your executive team has been assembled to prepare a bid to purchase one of the eight banks. Sadly, you receive word that there are four other banks also competing for the spoils. You are determined to purchase one bank, so you are preparing bids on five of the banks to ensure that you can acquire at least one. The latest financial exhibits (limited as they are) of all eight banks can be found on the FDIC website (okay Blackboard).
You have been asked by your Board of Directors to rank order your top five choices and list a bid for each one.
ALL BIDS ARE DUE AT 5:00 PM, March 21.

Rank Bank Name Bid Price/Share
#1 Bank C $37.52
#2 Bank E $40.512
#3 Bank H $39.52
#4 Bank F $38.52
#5 Bank B $39.52
Your Board of Directors will evaluate your performance based on your cumulative return on investment over the course of the simulation.
The “Bank Bid Analysis” worksheet is provided to help you calculate your bid. Some things to consider:
• Each bank has 100,000 shares outstanding
• Submit bids on a price per share basis
• Bids CANNOT be for less than book value
• Bids will be competitive with the highest bidder awarded the acquisition
Remember – the more you bid, the more profits you will need to generate over the course of the simulation in order to maximize the return on your initial investment (purchase price).

Bank “A” Bank “B” Bank “C” Bank “D” Bank “E” Bank “F” Bank “G” Bank “H”

Balance Sheet 12/31/20X0 Balance Sheet 12/31/20X0 Balance Sheet 12/31/20X0 Balance Sheet 12/31/20X0 Balance Sheet 12/31/20X3 Balance Sheet 12/31/20X0 Balance Sheet 12/31/20X0 Balance Sheet 12/31/20X0
Cash 8,633,495 Cash 2,865,522 Cash 2,832,000 Cash 1,392,000 Cash 2,256,000 Cash 9,199,111 Cash 16,079,381 Cash 13,160,899
Securities and Other Investments 3,000,000 Securities and Other Investments 2,000,000 Securities and Other Investments 2,196,816 Securities and Other Investments 0 Securities and Other Investments 1,600,000 Securities and Other Investments 4,500,000 Securities and Other Investments 2,500,000 Securities and Other Investments 4,000,000
Loans Loans Loans Loans Loans Loans Loans Loans
Commercial Loans 7,587,441 Commercial Loans 8,592,732 Commercial Loans 9,063,594 Commercial Loans 8,059,579 Commercial Loans 7,960,410 Commercial Loans 8,641,278 Commercial Loans 9,101,351 Commercial Loans 7,961,065
Consumer Loans 5,074,103 Consumer Loans 6,026,361 Consumer Loans 6,070,285 Consumer Loans 5,356,410 Consumer Loans 5,158,236 Consumer Loans 6,149,423 Consumer Loans 6,586,702 Consumer Loans 5,535,150
Real Estate Loans 10,923,533 Real Estate Loans 11,682,169 Real Estate Loans 12,072,811 Real Estate Loans 12,160,287 Real Estate Loans 11,901,157 Real Estate Loans 13,157,372 Real Estate Loans 13,011,609 Real Estate Loans 12,903,575
Total Loans Balances 23,585,077 Total Loans Balances 26,301,262 Total Loans Balances 27,206,690 Total Loans Balances 25,576,276 Total Loans Balances 25,019,803 Total Loans Balances 27,948,072 Total Loans Balances 28,699,662 Total Loans Balances 26,399,790
Allowance for Loan Losses (349,109) Allowance for Loan Losses (428,459) Allowance for Loan Losses (442,550) Allowance for Loan Losses (363,220) Allowance for Loan Losses (295,035) Allowance for Loan Losses (488,036) Allowance for Loan Losses (406,862) Allowance for Loan Losses (387,094)
Total Loans 23,235,968 Total Loans 25,872,804 Total Loans 26,764,139 Total Loans 25,213,056 Total Loans 24,724,767 Total Loans 27,460,036 Total Loans 28,292,800 Total Loans 26,012,697
Other Assets 624,623 Other Assets 695,505 Other Assets 719,466 Other Assets 677,770 Other Assets 2,395,256 Other Assets 738,173 Other Assets 760,559 Other Assets 699,266

TOTAL ASSETS 35,494,086 TOTAL ASSETS 31,433,832 TOTAL ASSETS 32,512,421 TOTAL ASSETS 27,282,827 TOTAL ASSETS 30,976,024 TOTAL ASSETS 41,897,320 TOTAL ASSETS 47,632,740 TOTAL ASSETS 43,872,861

Deposits Deposits Deposits Deposits Deposits Deposits Deposits Deposits
Demand 8,640,000 Demand 5,760,000 Demand 4,320,000 Demand 7,200,000 Demand 7,200,000 Demand 14,400,000 Demand 14,400,000 Demand 5,760,000
Savings 16,800,000 Savings 14,400,000 Savings 14,400,000 Savings 4,800,000 Savings 9,600,000 Savings 19,200,000 Savings 19,200,000 Savings 24,000,000
Time Deposits 5,760,000 Time Deposits 6,720,000 Time Deposits 9,600,000 Time Deposits 1,920,000 Time Deposits 5,760,000 Time Deposits 3,840,000 Time Deposits 9,600,000 Time Deposits 9,600,000
Total Deposits 31,200,000 Total Deposits 26,880,000 Total Deposits 28,320,000 Total Deposits 13,920,000 Total Deposits 22,560,000 Total Deposits 37,440,000 Total Deposits 43,200,000 Total Deposits 39,360,000
Other Liabilities 624,623 Other Liabilities 695,505 Other Liabilities 719,466 Other Liabilities 9,575,835 Other Liabilities 4,494,470 Other Liabilities 738,173 Other Liabilities 760,559 Other Liabilities 699,266

TOTAL LIABILITIES 31,824,623 TOTAL LIABILITIES 27,575,505 TOTAL LIABILITIES 29,039,466 TOTAL LIABILITIES 23,495,835 TOTAL LIABILITIES 27,054,470 TOTAL LIABILITIES 38,178,173 TOTAL LIABILITIES 43,960,559 TOTAL LIABILITIES 40,059,266

Shareholder’s Equity (Capital) 3,669,463 Shareholder’s Equity (Capital) 3,858,326 Shareholder’s Equity (Capital) 3,472,955 Shareholder’s Equity (Capital) 3,786,992 Shareholder’s Equity (Capital) 3,921,554 Shareholder’s Equity (Capital) 3,719,147 Shareholder’s Equity (Capital) 3,672,181 Shareholder’s Equity (Capital) 3,813,595

TOTAL LIABILITIES & EQUITY 35,494,086 TOTAL LIABILITIES & EQUITY 31,433,832 TOTAL LIABILITIES & EQUITY 32,512,421 TOTAL LIABILITIES & EQUITY 27,282,827 TOTAL LIABILITIES & EQUITY 30,976,024 TOTAL LIABILITIES & EQUITY 41,897,320 TOTAL LIABILITIES & EQUITY 47,632,740 TOTAL LIABILITIES & EQUITY 43,872,861

Income Statement Data: 12/31/20X0 Income Statement Data: 12/31/20X0 Income Statement Data: 12/31/20X3 Income Statement Data: 12/31/20X0 Income Statement Data: 12/31/20X3 Income Statement Data: 12/31/20X0 Income Statement Data: 12/31/20X0 Income Statement Data: 12/31/20X0
Interest Income 1,418,601 Interest Income 1,553,718 Interest Income 1,563,410 Interest Income 1,443,646 Interest Income 1,518,569 Interest Income 1,630,547 Interest Income 1,605,341 Interest Income 1,548,687
Interest Expense 150,529 Interest Expense 140,837 Interest Expense 106,318 Interest Expense 148,588 Interest Expense 110,603 Interest Expense 85,485 Interest Expense 140,074 Interest Expense 112,696

Net Interest Income 1,268,072 Net Interest Income 1,412,882 Net Interest Income 1,457,092 Net Interest Income 1,295,058 Net Interest Income 1,407,966 Net Interest Income 1,545,062 Net Interest Income 1,465,268 Net Interest Income 1,435,991

Provision Expense (118,094) Provision Expense (151,861) Provision Expense (138,405) Provision Expense (131,773) Provision Expense (110,119) Provision Expense (182,081) Provision Expense (177,012) Provision Expense (142,603)
Noninterest Income 430,588 Noninterest Income 472,403 Noninterest Income 474,965 Noninterest Income 438,233 Noninterest Income 462,222 Noninterest Income 494,267 Noninterest Income 487,057 Noninterest Income 470,183

Total Income 1,580,566 Total Income 1,733,424 Total Income 1,793,653 Total Income 1,601,518 Total Income 1,760,069 Total Income 1,857,249 Total Income 1,775,312 Total Income 1,763,571

Noninterest Expense Noninterest Expense Noninterest Expense Noninterest Expense Noninterest Expense Noninterest Expense Noninterest Expense Noninterest Expense
Salaries and Benefits 677,358 Salaries and Benefits 648,145 Salaries and Benefits 655,855 Salaries and Benefits 652,873 Salaries and Benefits 624,017 Salaries and Benefits 714,137 Salaries and Benefits 794,649 Salaries and Benefits 655,525
Occupancy 118,635 Occupancy 120,844 Occupancy 121,614 Occupancy 121,232 Occupancy 118,536 Occupancy 127,105 Occupancy 129,000 Occupancy 121,471
Operating 486,809 Operating 504,113 Operating 510,109 Operating 507,790 Operating 485,347 Operating 555,440 Operating 570,255 Operating 509,853
Other 34,772 Other 36,008 Other 36,436 Other 36,271 Other 34,668 Other 39,674 Other 40,733 Other 36,418
Total Noninterest Expense 1,317,574 Total Noninterest Expense 1,309,110 Total Noninterest Expense 1,324,014 Total Noninterest Expense 1,318,165 Total Noninterest Expense 1,262,567 Total Noninterest Expense 1,436,357 Total Noninterest Expense 1,534,637 Total Noninterest Expense 1,323,266

Net Profit before Taxes 262,992 Net Profit before Taxes 424,314 Net Profit before Taxes 469,638 Net Profit before Taxes 283,353 Net Profit before Taxes 497,502 Net Profit before Taxes 420,892 Net Profit before Taxes 240,675 Net Profit before Taxes 440,304

Stats and Performance Ratios: 12/31/20X0 Stats and Performance Ratios: 12/31/20X0 Stats and Performance Ratios: 12/31/20X0 Stats and Performance Ratios: 12/31/20X0 Stats and Performance Ratios: 12/31/20X0 Stats and Performance Ratios: 12/31/20X0 Stats and Performance Ratios: 12/31/20X0 Stats and Performance Ratios: 12/31/20X0

Loans – Average Balance 24,827,499 Loans – Average Balance 27,697,445 Loans – Average Balance 28,649,011 Loans – Average Balance 26,917,948 Loans – Average Balance 26,331,187 Loans – Average Balance 29,419,482 Loans – Average Balance 30,220,108 Loans – Average Balance 27,780,493
Avg Yield Commercial Loans 5.59% Avg Yield Commercial Loans 5.48% Avg Yield Commercial Loans 5.26% Avg Yield Commercial Loans 5.51% Avg Yield Commercial Loans 5.64% Avg Yield Commercial Loans 5.50% Avg Yield Commercial Loans 5.32% Avg Yield Commercial Loans 5.52%
Avg Yield Consumer Loans 6.48% Avg Yield Consumer Loans 6.24% Avg Yield Consumer Loans 6.15% Avg Yield Consumer Loans 6.32% Avg Yield Consumer Loans 6.69% Avg Yield Consumer Loans 6.20% Avg Yield Consumer Loans 5.86% Avg Yield Consumer Loans 6.29%
Avg Yield Real Este Loans 5.11% Avg Yield Real Este Loans 5.20% Avg Yield Real Este Loans 5.07% Avg Yield Real Este Loans 4.83% Avg Yield Real Este Loans 5.11% Avg Yield Real Este Loans 4.95% Avg Yield Real Este Loans 4.82% Avg Yield Real Este Loans 4.87%
Average Yield on Loans YTD 5.567% Average Yield on Loans YTD 5.533% Average Yield on Loans YTD 5.376% Average Yield on Loans YTD 5.363% Average Yield on Loans YTD 5.611% Average Yield on Loans YTD 5.400% Average Yield on Loans YTD 5.219% Average Yield on Loans YTD 5.369%
Loan Losses -0.48% Loan Losses -0.55% Loan Losses -0.48% Loan Losses -0.49% Loan Losses -0.42% Loan Losses -0.62% Loan Losses -0.59% Loan Losses -0.51%

Deposits – Average Balance 28,691,656 Deposits – Average Balance 35,407,002 Deposits – Average Balance 15,024,482 Deposits – Average Balance 13,691,986 Deposits – Average Balance 14,080,260 Deposits – Average Balance 14,013,579 Deposits – Average Balance 13,782,014 Deposits – Average Balance 13,868,929
Average Rate on Deposits YTD 0.492% Average Rate on Deposits YTD 0.368% Average Rate on Deposits YTD 0.636% Average Rate on Deposits YTD 0.033% Average Rate on Deposits YTD 0.305% Average Rate on Deposits YTD 0.531% Average Rate on Deposits YTD 0.933% Average Rate on Deposits YTD 0.737%

Average Yield on Investments 1.212% Average Yield on Investments 1.065% Average Yield on Investments 1.061% Average Yield on Investments 0.776% Average Yield on Investments 2.574% Average Yield on Investments 0.930% Average Yield on Investments 1.126% Average Yield on Investments 1.431%

Asset Growth Yr./Yr. 17.38% Asset Growth Yr./Yr. -0.95% Asset Growth Yr./Yr. -4.45% Asset Growth Yr./Yr. -13.42% Asset Growth Yr./Yr. -7.60% Asset Growth Yr./Yr. 30.24% Asset Growth Yr./Yr. 50.49% Asset Growth Yr./Yr. 37.66%
Revenue Growth Yr./Yr. 10.65% Revenue Growth Yr./Yr. 13.04% Revenue Growth Yr./Yr. 25.24% Revenue Growth Yr./Yr. 8.52% Revenue Growth Yr./Yr. 10.20% Revenue Growth Yr./Yr. 28.13% Revenue Growth Yr./Yr. 21.25% Revenue Growth Yr./Yr. 18.01%
Net Interest Margin _____________ Net Profit Margin _______________
Asset Utilization ________________ Efficiency Ratio _________________
Equity Multiplier ________________

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