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The bank valuation model uses Asset growth rates, SNL's Performance Analytics, and discounted cash flow analysis to estimate the value of a firm.
Legend
Black font = Pulled from Database or Calculated
Blue font = Writable Input
Datasets: Regulated Depositories and Market Data
Users can input public or private banks into this model using Ticker or SNL ID.
Required Inputs:
Company: This is the company that you would like to estimate the value for. This can be from the perspective of an investor or buyer looking at an outside company, or used introspectively by a Banks management team to evaluate the impact of market or strategic changes on thei
firm, a first step or second check when considering acquisitions, or to compare themselves to market valuations.
Period: The is the "base period" for the model, the date selected here will populate the second column in the report, the first column being a historical reference. If you choose a period that is not a Year End the column to the right of the base period will be used to adjust the model t
on year end terms, and will represent the remainder of the base period's year. Example: Period = 2012Q1 then the column to the right of the base will be the 9 months remaining in 2012Y.
Discount Rate: The rate at which the cash flows determined by the model will be discounted back to present value. This ratio can be based on a combination of market conditions and risk as well as a companys cost of equity.
Terminal Value Multiple (TVM): This input has two steps. First choose if you would like to work with a Price to Earnings Multiple (P/E) or a Price to Tangible Book Multiple (P/TB), then input your desired multiple.
Total Assets is calculated over time by the Annual Asset Growth Rate, the first input in the model. This growth rate is capped at 10% and has a floor of 0%, so growth rates outside that range will not be carried forward automatically, but can be input.
Tangible Assets (TA) is determined by Total Assets Intangible Assets. Users can manipulate TA by changing Amortization of Intangibles, which is carried forward as a constant from the Base Period. Intangibles will never be less than the amount of Goodwill in the base period by d
Return on Average Assets (ROAA) is driven by a performance analysis (DuPont Analysis). Within this portion of the model users can modify the composition of Earning Assets and their Yields, the composition of Interest Bearing Liabilities and their costs as well as Non-Interest
Income/Expense and Other items that impact Net Income. All values are carried forward with the exception of Gain on Asset Sales/Avg Assets because assets sales are not considered normal course of business for a bank.
Net Income added to the Ending Tangible Common Equity (TCE), which is initially carried forward from the ending balance for your base period, returns Tangible Common Equity before Distributions. Ending (Required) TCE/TA is an input carried forward from your base year.
Depending on whether the user thinks the company should hold more or less capital will determine how this ratio is changed. The difference in $000 between TCE Before Distributions and Ending (Required) TCE is what determines the firms cash flows for a given period.
Capital Distributions (Infusions), or cash flows, for each period are then discounted back into present value terms. The terminal value multiple is applied to Net Income if using the TVM P/E model and to Target Tangible Common Equity if using the TVM P/TB model. Terminal value i
discounted back and then added to all discounted cash flows to get your total firm value.
Sensitivity Analysis
The sensitivity analysis table shows multiple varied combinations of discount rates and terminal values. This will demonstrate how Firm Value would change by changing those inputs without actually having to run the model multiple times.
The sensitivity analysis graph shows multiple discount rates assuming Terminal Value Multiple is held constant at the user input rate.
Model Projections and Market Data
For public companies you can see the model projections for stock price, P/B, P/TB and FactSet earnings estimates so you can compare your model assumptions to the most recent actual market data.
Cost Savings After Tax. The savings are added into Net Income within the Bank Valuation Model. One Time Deal Expense as a dollar value is calculated by the user input for One Time Deal Expense
as a % of Total Assets. This is deducted from firm value in the period immediately following the base period.
r looking at an outside company, or used introspectively by a Banks management team to evaluate the impact of market or strategic changes on their own
being a historical reference. If you choose a period that is not a Year End the column to the right of the base period will be used to adjust the model to be
of the base will be the 9 months remaining in 2012Y.
e based on a combination of market conditions and risk as well as a companys cost of equity.
nd has a floor of 0%, so growth rates outside that range will not be carried forward automatically, but can be input.
gibles, which is carried forward as a constant from the Base Period. Intangibles will never be less than the amount of Goodwill in the base period by default.
modify the composition of Earning Assets and their Yields, the composition of Interest Bearing Liabilities and their costs as well as Non-Interest
vg Assets because assets sales are not considered normal course of business for a bank.
base period, returns Tangible Common Equity before Distributions. Ending (Required) TCE/TA is an input carried forward from your base year.
rence in $000 between TCE Before Distributions and Ending (Required) TCE is what determines the firms cash flows for a given period.
e multiple is applied to Net Income if using the TVM P/E model and to Target Tangible Common Equity if using the TVM P/TB model. Terminal value is also
m Value would change by changing those inputs without actually having to run the model multiple times.
663,010
Dollars in ($000)
2011Y Act.
Total Assets
2012L3 Act.
3,604,117
3,887,909
(4.21)
Amortization of Intangibles
Intangible Assets
7.34
2,723
941
80,754
78,031
77,090
3,801,028
3,873,247
4,166,593
4,481,271
4,818,847
5,179,219
3,746,013
3,923,678
4,104,759
4,406,048
4,729,452
5,076,594
3.88
3.89
3.89
3.89
3.89
1.56
4.56
4.43
4.44
1.41
1.41
4.57
1.41
4.57
4.45
4.57
4.45
4.45
1.41
4.57
4.45
5.56
5.29
5.31
5.31
5.31
5.31
5.00
4.73
4.74
4.74
4.74
4.74
6.48
6.48
6.48
6.48
73.16
73.16
73.16
73.16
73.16
0.51
2.43
0.52
2.43
0.52
0.52
2.43
2.43
0.52
2.43
21.30
21.30
21.30
21.30
0.06
0.05
0.05
0.05
0.05
0.05
0.83
0.83
0.83
0.83
0.83
5.55
5.54
5.54
5.54
5.54
5.54
1.13
0.85
0.86
0.86
0.86
0.86
0.61
0.67
0.61
0.67
0.61
0.61
0.67
0.67
0.61
0.67
91.22
91.22
91.22
91.22
91.22
0.29
0.25
0.25
0.25
0.25
0.25
0.05
0.83
0.94
2.43
5.95
90.37
0.52
21.30
1.00
0.84
4.74
6.48
73.16
21.30
4.45
5.31
6.48
2.79
3.89
4.57
76.33
17.72
1.41
6.58
0.50
0.86
0.61
0.67
91.22
0.25
2.90
2.81
2.81
2.81
2.81
2.81
2.81
9.63
8.78
8.78
8.78
8.78
8.78
8.78
0.15
0.12
1.13
0.85
0.12
0.86
0.12
0.12
0.86
0.86
0.12
0.86
0.12
0.86
12.59
14.07
14.07
14.07
14.07
14.07
14.07
84.85
85.22
85.22
85.22
85.22
85.22
85.22
1.03
1.04
0.00
0.00
0.02
0.03
0.03
0.03
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.08
0.14
0.00
0.00
0.00
0.00
0.09
0.13
0.00
0.00
0.00
0.00
(0.02)
0.01
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.39
0.38
0.38
0.38
0.38
0.38
0.05
0.05
0.05
0.05
0.05
0.05
0.00
0.00
0.00
0.00
0.00
0.00
0.05
0.05
0.05
0.05
0.05
0.05
0.89
0.00
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.38
0.05
0.00
0.05
0.50
0.43
0.43
0.43
0.43
0.43
0.43
2.57
2.46
2.46
2.46
2.46
2.46
2.46
1.17
1.17
1.17
1.17
1.17
0.37
0.34
0.34
0.34
0.34
0.34
0.08
0.07
0.07
0.07
0.07
0.07
0.95
0.88
0.88
0.88
0.88
0.88
0.06
0.06
0.06
0.06
0.06
0.06
0.10
0.10
0.10
0.10
0.10
0.10
0.81
0.87
0.87
0.87
0.87
0.87
0.00
49.56
47.45
54,741
60,250
0.00
50.00
423,097
11.13
0.00
50.00
50.00
0.00
50.00
0.07
0.88
0.06
0.10
0.87
0.00
50.00
431,092
463,742
498,765
536,338
13,831
57,877
62,125
66,685
71,580
0.49
2.04
2.19
2.35
2.53
436,928
488,969
525,867
565,450
607,918
431,092
11.13
5,836
0.00
1.17
0.34
423,097
11.28
405,783
11.48
5,673
0.03
0.89
0.00
0.00
0.00
0.89
0.00
0.00
1.17
0.89
0.00
0.00
0.00
0.89
0.00
0.00
0.00
7.34
2,723
83,477
4.57
7.34
2,723
7.34
2016Y Est.
5,256,309
681
3.88
7.34
2015Y Est.
4,896,878
86,200
1.50
2014Y Est.
4,562,025
86,881
1.84
2013Y Est.
4,250,070
2,723
ROAA (%)
3,959,447
68,283
3,535,834
Remainder of 2012Y
Est.
23.68
2,827
Average Assets
11.74
11.73
463,742
498,765
11.13
11.13
25,227
27,102
21,895
21,002
11.73
536,338
11.13
29,112
20,143
11.74
576,447
11.13
31,471
19,442
574,855
$
663,010
Sensitivity Analysis
Model Projections
938,346
740,000
720,000
33.52
Price/Book (x)
1.85
2.23
700,000
680,000
663,010
23.68
1.30
1.57
2012 Est.
2.27
Price/EPS (x)
14.78
2.12
11.17
EPS ($)
Value/EPS (x)
660,000
Projected Firm Value Sensitivity Analysis ($000)
640,000
Discount Rate
620,000
600,000
580,000
Terminal
Value
Multiple
560,000
10%
11%
12%
13%
Discount Rate
14%
663,010
11x
12x
13x
14x
15x
10%
617,438
665,177
712,916
760,655
808,394
11%
595,507
641,445
687,383
733,320
779,258
12%
574,571
618,791
663,010
707,230
751,449
13%
554,572
597,152
639,732
682,313
724,893
14%
535,464
576,480
617,495
658,510
699,526
613,061
21.90
Dollars in ($000)
2011Y Act.
2012L3 Act.
Remainder of 2012Y
Est.
2013Y Est.
2014Y Est.
2015Y Est.
2016Y Est.
Total Assets
3,604,117
3,887,909
3,959,447
4,250,070
4,562,025
4,896,878
5,256,309
2,827
2,723
681
2,723
2,723
2,723
Intangible Assets
(4.21)
68,283
3,535,834
Average Assets
ROAA (%)
1.50
7.34
86,881
3,801,028
4,166,593
80,754
4,481,271
4,406,048
4,729,452
1.41
1.41
1.41
3.88
3.89
3.89
3.89
3.89
4.57
4.56
4.57
4.57
4.57
4.57
4.43
4.44
4.45
4.45
4.45
4.45
5.56
5.29
5.31
5.31
5.31
5.31
6.58
4.73
6.48
4.74
6.48
4.74
6.48
4.74
6.48
73.16
73.16
73.16
73.16
0.51
0.52
0.52
0.52
0.52
4.57
4.45
5.31
4.74
6.48
73.16
0.52
2.79
2.43
2.43
2.43
2.43
2.43
2.43
17.72
21.30
21.30
21.30
21.30
21.30
21.30
0.06
1.00
0.05
0.83
0.05
0.83
0.05
0.83
0.05
0.05
0.83
0.05
0.83
0.83
5.95
5.55
5.54
5.54
5.54
5.54
5.54
1.13
0.85
0.86
0.86
0.86
0.86
0.86
0.84
0.61
0.61
0.61
0.61
0.61
0.61
0.94
0.67
0.67
0.67
0.67
0.67
0.67
90.37
91.22
91.22
91.22
91.22
91.22
91.22
0.29
2.90
9.63
0.15
0.25
2.81
8.78
0.12
0.25
2.81
8.78
0.12
0.25
2.81
8.78
0.12
0.25
0.25
2.81
0.25
2.81
8.78
2.81
8.78
0.12
8.78
0.12
0.12
1.13
0.85
0.86
0.86
0.86
0.86
0.86
12.59
14.07
14.07
14.07
14.07
14.07
14.07
84.85
85.22
85.22
85.22
85.22
85.22
85.22
1.03
1.04
0.89
0.89
0.89
0.89
0.89
0.00
0.00
0.00
0.00
0.00
0.00
0.02
0.03
0.03
0.03
0.03
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.08
0.09
(0.02)
0.00
0.14
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.39
0.38
0.38
0.38
0.38
0.38
0.00
0.05
0.00
0.05
0.00
0.05
0.00
0.00
0.00
0.00
0.13
0.00
0.05
0.00
0.03
0.00
0.05
0.00
0.00
0.00
0.00
0.00
0.00
0.38
0.05
0.00
0.05
0.00
0.00
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.50
0.43
0.43
0.43
0.43
0.43
0.43
2.57
2.46
2.46
2.46
2.46
2.46
1.17
1.17
1.17
1.17
1.17
1.17
0.37
0.34
0.34
0.34
0.34
0.34
0.08
0.95
0.07
0.88
0.07
0.88
0.07
0.88
0.07
0.88
0.06
0.06
0.06
0.06
0.06
0.10
0.10
0.10
0.10
0.10
0.10
0.81
0.87
0.87
0.87
0.87
0.87
0.00
0.00
0.00
0.00
0.00
0.00
47.45
60,250
50.00
50.00
50.00
431,092
463,742
498,765
536,338
1,568
0.00
0.00
0.00
62,125
66,685
71,580
0.54
2.04
2.19
2.35
2.53
438,496
488,969
525,867
565,450
11.32
11.74
11.73
11.73
431,092
463,742
498,765
536,338
11.13
11.13
11.13
11.13
7,404
(51,473)
(44,276)
12.39
Average
136.68
148.80
31,471
21,895
21,002
20,143
19,442
574,855
Implied Value
High
198.33
200.21
28.79
26.03
5.76
17.63
15.92
21.44
4.91
11.13
29,112
22.60
5.97
11.74
576,447
27,102
22.08
*Comparable Deals in New England announced from 09/12/2009 to 09/12/2012 for targets between $500,000,000 and $2,000,000,000 in assets.
*Implied Values based upon Median Comparable Deal Metrics.
20.24
607,918
25,227
16.94
-4.17
20.79
57,877
11.13
155.37
0.00
15,399
423,097
58.01
0.00
50.00
11.48
Median
153.49
0.10
0.87
423,097
405,783
Low
43.61
0.88
0.06
50.00
10.00
54,741
0.34
0.07
0.88
0.06
49.56
2.46
1.17
0.07
1.41
3.89
6.48
73.16
0.50
5,179,219
5,076,594
4.74
76.33
941
77,090
4,818,847
4,104,759
3.88
5.00
7.34
78,031
1.41
3,873,247
83,477
7.34
3,923,678
86,200
7.34
1.56
7.34
3,746,013
1.84
11.74
$
$
657,366
1,252,598
552,098
1,423,127
696,830
$
$
23.48
44.75
50.84
19.72
24.89
27,993,628
Peer Analysis
Company Name
End of Period Date (m/dd/yyyy)
Peer Average
Peer Median
Bank of America
Corporation
9/30/2012
Citigroup Inc.
9/30/2012
958,349,205
25,643,908
0.77
1.19
3.54
3.30
4.21
5.54
63.40
2.64
18.37
1.68
18.23
0.91
0.47
70.27
1.96
29.73
88.98
1.82
3.35
1,443,436
69.93
92,262,600
66,618,692
932,705,298
2,762,374,076
2,742,401,797
37.43
73,107.0
95.6
133.7
327,183,552
13,303,658
1.46
1.25
3.37
3.17
4.03
4.80
71.93
2.47
17.20
1.28
5.68
0.84
0.38
76.07
2.04
23.93
89.99
2.00
3.34
1,008,276
63.70
36,971,214
24,573,822
316,731,312
1,420,910,304
1,388,918,955
37.92
49,525.5
91.2
125.6
3,887,909
86,881
-16.62
1.62
4.57
4.46
5.15
6.37
72.67
2.25
21.56
0.00
5.77
0.69
0.50
91.83
2.80
8.17
85.43
1.03
2.39
16,095
46.02
509,978
423,097
3,801,028
28,341,000
27,993,628
33.52
938.3
185.2
223.3
2,168,023,105
77,006,774
1.10
0.06
2.08
1.67
2.91
4.37
48.22
2.27
17.34
1.24
34.44
1.24
0.28
52.70
2.30
47.30
89.90
1.87
3.25
340,073
84.54
219,837,609
142,830,835
2,091,016,331
10,776,173,000
10,778,078,165
11.63
125,349.0
57.0
86.7
173,213,253
6,434,045
-11.43
2.50
3.22
3.06
3.66
4.04
80.58
2.88
12.61
0.29
6.82
0.60
0.41
81.77
1.45
18.23
91.60
1.43
4.04
1,077,409
90.06
20,009,599
13,575,554
166,779,208
538,699,000
538,828,728
28.31
15,254.2
76.2
112.4
1,931,346,000
31,915,000
3.11
0.10
2.80
2.43
3.89
7.37
38.60
2.52
16.54
1.31
44.85
1.46
0.93
57.08
2.18
42.92
90.84
0.10
2.67
468,000
98.18
186,465,000
154,550,000
1,899,431,000
3,015,300,000
2,932,520,700
42.34
124,162.9
66.6
79.3
2,321,284,000
50,819,000
5.44
1.02
2.19
1.94
2.72
4.90
36.96
2.02
17.05
1.24
45.99
0.78
0.34
54.51
1.31
45.49
89.62
2.46
2.76
5,708,000
61.16
190,635,000
139,816,000
2,270,465,000
3,813,900,000
3,801,401,625
46.14
175,396.7
92.0
125.0
301,077,311
9,944,687
1.82
1.26
3.89
3.75
4.33
4.77
71.74
3.27
24.99
2.67
3.26
0.58
0.29
76.18
1.53
23.82
82.37
2.20
3.53
939,142
63.62
35,123,330
25,178,643
291,132,624
529,000,000
528,863,145
60.05
31,758.2
90.4
126.2
U.S. Bancorp
9/30/2012
117,482,869
2,446,126
-0.20
1.24
3.68
3.49
4.16
4.41
82.73
3.39
13.65
0.75
3.62
0.67
0.36
79.96
1.90
20.04
87.25
2.12
3.42
363,052
63.78
13,319,162
10,873,036
115,036,743
944,820,608
897,467,318
15.47
13,883.8
104.2
127.7
302,114,103
16,662,629
7.30
1.59
6.96
6.81
7.87
9.62
76.29
2.35
21.42
3.50
2.29
1.06
0.76
83.98
2.58
16.02
90.15
1.56
4.10
1,177,813
49.00
38,819,098
22,156,469
285,451,474
584,100,000
581,684,101
61.99
36,058.6
92.8
149.5
352,253,000
9,923,000
-1.00
1.71
3.51
3.27
4.16
4.83
72.11
2.42
23.35
2.40
4.54
0.89
0.40
75.96
2.43
24.04
90.08
2.78
3.03
1,474,000
49.09
33,892,000
23,969,000
342,330,000
1,897,000,000
1,880,370,592
33.50
62,992.4
185.8
262.8