Introduction
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Benefits
Who We Are
How does Sale/Lease back work?
Why Choose Bank Realty L.P.
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BENEFITS OF A SALE - LEASE BACK TRANSACTION

A. Enhance Shareholder Value:

  • Improve book value - improves price to book value by eliminating depreciation assets.
  • Reduce chances of hostile takeover by increasing share price - because banks are valued on a multiple of book or earnings.
  • Does not decrease existing stock price as stock issuance dilutes.
  • Improvement to earnings enhances values subject to multiple.

B. Improve Balance Sheet:

  • Frees trapped or dormant capital, improves compliance ratios.
  • Use of cash for strategic purposes, purchase other accretive business, add loans and or loan loss reserve, technology upgrades.
  • Unlike trust preferreds - this is equity!
  • Recognizes branches as a depreciating asset pool.
  • Fund shareholder redemption.
  • Fund cash out portion of acquisitions.

C. Improves Earnings and Efficiency:

  • Eliminates depreciation cost and adds capital gains to income.
  • Allows for increased earnings through use of funds leveraged in new asset deployment.
  • Improved earnings can enhance efficiency ratio.

D. Other

  • Limits conflicts of interest with directors and customers.

E. Summary:

  • Properly structured sale - lease back transactions can improve shareholder value in an industry in which the value of physical plant (branch real estate) does not figure in the enterprise value.

Own vs. Lease?

What is the financial impact as a bank?

How Does Sale/Lease-Back Work?

Why choose Bank Realty, LP?


NO DEAL TOO SMALL
For information call us at: 717-812-9990 / 717-843-5100