Here are the different ways we can help you.
Scenario 1- Starting a new bank or De Nova Bank
• Minimum investment required to start a new bank- 10, 000,000
• Interest we pay or lose, in case we raise capital or go for 50% loan amount is $750,000 at 7.5% interest rate for the first year.
• If it takes longer time to get the approval it will be $1,125,000 for one and a half year.
• Now we have to take a new place, which will include cost of acquisition or the rent which I will put at $100,000 to $150,000
• Cost of payroll for the first one and a half year is $400,000 for the first year
• It normally takes minimum 2 years to make the bank profitable which means we have lost additional $ 400,000 for the second year.
• Now after 2 years our equity is down to 8 M as our total expenses are $2M
Our total cost is $2,075,000 this is keeping in view the fact, we never bought the building, and we rented out the premises.
• It will take additional 3 years for us to take it public.
Scenario 2- Buying New Bank, Chicago
• We pay $23,000,000 for it.
• The bank makes a profit of $1,500,000 to $1,700,000 profit each year.
• It saves us times and gives us a platform to grow rather than to set up.
• We can set up a branch office immediately.
• We can take the bank public immediately at the earning are great and we can raise additional capital form the market.
• We can beat competition, as we are in public market and have more liquidity and resources.
• We get return on our investment.
Scenario 3- Buying New Bank, Chicago suburb suburbs
• We pay $25,000,000 for it.
• The bank makes a profit of $1,500,000 to $1,700,000 profit each year.
• It saves us times and gives us a platform to grow rather than to set up.
• We can set up a branch office immediately.
Scenario 4- Bank, Illinois
• Bank is a thrift with $4.00 M in equity, so if we buy it for 1.6 times book value we can buy it for $6.00 to $7.0 M
• Bank is federal bank.
• We can do mortgage business across America.
• It has made loss of more than $6 M over the years. We can use this loss and preserve on tax front.
• It is based in IL
• The only negative is it has poor management, which we need to change.
• Once, we are able to bring in equity in the bank all regulatory problems will solve over time.
Scenario 5- Bank in NY, NY
• Bank is a federal bank with $5.0 M in equity, so if we buy it for 2.0 times book value we can buy it for $10.0 to $11 M
• Bank is a federal bank
• We can do mortgage business across America.
• Bank is making small profit.
• We can open up branches.
Scenario 6- Federal Saving in Dallas, TX
• Bank is a federal bank with $25 M in equity, so if we buy it for 1.4 to 1.6 times book value we can buy it for $35 M to $40 M
• Bank is a federal bank
• We can do mortgage business across America.
Scenario 7- National chartered bank in TX
• Bank is national chartered bank with $8 M in equity
• Bank is a national chartered
Scenario 8- National chartered bank in TX
• Bank is national chartered bank with $15 M in equity
• Bank is a national chartered
Scenario 9- Public bank in FL
• Bank is with over 27 M in equity.
Scenario 10- National bank in IL
• Very small national chartered bank
Scenario 11- National bank in Mid West for $4M
• Very small national chartered bank
Robin Trehan, said CCF is one stop institute for all financial needs. CCF and its partner companies.
