EverTrust Bank Valuation

Options of Synergy
Better Product Mix
Efficiency of Operations with Integrated IT
Economies of Scale (Reducing Cost of Funding)
Closing Down of Duplicate Branches or Processes
Market Penetration
Growth Opportunity
Details of Operating Area
Structure of Valuation
Areas of Consideration
Assets
 Investments
 Owned Buildings and Leases
 Cash & Cash Equivalents
 Loan Advances
Liabilities
 Deposits
 Equity Capital
 Borrowings
 Salaries and Compensation
 Area of Consideration
Branches
Ever Trust Bank Branches Wells Fargo Branches
Main Office -2707 Colby Ave Ste 600 - Everett 2801 Wetmore Ave – Everett
Madison Branch 6726 Evergreen Way – Everett 7502 Evergreen Way – Everett
Marysville Branch -1300 State St – Marysville 1226 State Ave – Marysville
Silver Lake Branch -1902 – 100th St Se – Everett 1801 Broadway – Everett
Snohomish Branch - 1325 Ave D – Snohomish 1219 13th St – Snohomish
Monroe Branch -Main & Woods – Monroe 19501 State Rte 2 – Monroe
Lake Stevens Branch -633 Hwy 9 – Lake Stevens 1901 Main St – Lake Street
Arlington Branch -535 N Olympic – Arlington
North CreekBranch-18001 Bothell Way – Bothell 22707 Bothell Everett Hwy – Bothell
Admin Office -2707 Colby Ave Ste 715 – Everett 2801 Wetmore Ave – Everett
One Convention Place Branch -701 Pike St Ste 2250 – 102 Pike St - Seattle
Seattle
Stanwood Branch -26606 72nd Ave NW – Stanwood 9916 270th St Nw – Stanwood
Bellevue Branch - 11000 Ne 10th St Bellevue 225 108th Ave Ne - Bellevue
Areas of Consideration
Overlapping Functions and Processes and Associated
Employee Roles
Impact on Non Interest Income from Closed Down
Processes and Branches.
Impact on Interest Income from Closed Down
Branches.
Reduction in Interest Expense due to Shifting of
Deposits and Consolidation Process.
Important Details
 10K of Wells Fargo is non downloadable but present at the following site
 https://www.wellsfargo.com/pdf/invest_relations/filings/10K2001.pdf
 Cost Savings projected at 28% post consolidation assume the following
which may be debatable
 Data Processing Expense would go down by 30%
 Though no Building or Leasing Expense is reduced there is reduction in
operating expense of Travel and Parking Expense
 Though Asset Quality Ratios are declining the Allowance for loan losses
has been decreased.
 The Construction business has the highest CAGR but the loan portfolio
distribution is weighed towards to more modest growth areas having 3
times lesser CAGR.
 The Exposure to its 2 most largest loans is 100% (viz. Garden Court
Retirement Building and Little Prairie Center LLC and both were disbursed
in past 3 month duration)
 Ever Trust Strategy Till Now
 In 1999, Mutual Bancshares, the predecessor to EverTrust
Financial Group developed a long term strategic plan to
transform itself from a community based thrift into a
diversified financial services company .

 Increasing the percentage of revenues from non interest

income and make it more diversified.

 In 2001, launched EverTrust Asset Management.

 Prudent management of excess capital through repurchase.

 Demands a price premium (expertise in each of its three

business lines)
 EverTrust Bank

Commercial Private Client

Real Estate Group Retail
Group Banking
Group

Busines Private
Portfolio Commercial s Banking Customer Retail
Real Mortgage Banking Care Branches
Estate Banking Center
Lending

EverTrust
Asset
Managemen Brokerage
t Services
Assumptions for Valuation
Assumptions made in the offering memorandum have
been assumed to be correct representation of cost
expense and cost savings.
Growth Rate – 3% based on U.S. GDP Growth Rate
(Assumed a Stable Growth Model)
The Increase in Interest and Non Interest Income and
Expense has been explained in the Excel Sheet
Thank you