Southard Financial
community bank

Why Community Banks Want A Reliable Valuation Company

Most people intuitively know what a “community bank” is, even if it can be hard to define one financially. They are typically the smaller banks just down the street—locally owned, locally operated, and locally involved.

Community banks are the financial equivalent of the cozy diner that knows your order as soon as you walk in the door…a place where the teller you’ve known for years will greet you by your first name. Your kids may even play on the same little league team (sponsored by that very bank, of course). They are the bank where business is done based on relationships as much as a rule book.

Community banks make up 92% of the banking industry. They provide the primary (if not the only) banking services for 20% of all the counties in the United States. Even though their assets only account for 12% of the industry, they are responsible for nearly half of the loans made to farmers and small businesses.

With this much of the nation’s small business economy riding on their shoulders, it is essential that community banks partner with experienced and reliable valuation companies.

There are three ways a good valuation company can provide services to a community bank:

  1. Appraisal Services for ESOPs, litigation, gift/estate taxes, etc.
  2. Transaction Advice during a Merger & Acquisition
  3. Financial Reporting Valuations after one bank has purchased another

Appraisal Services

Each year, Southard Financial conducts over 130 bank appraisals related to estate and gift tax, employee ownership, corporate transactions, shareholder transactions, financial reporting, and litigation support. We are able to reliably help community banks determine their value per share.

Community banks and bank holding companies rely on us to save them time, money, and provide a streamlined process when it comes to appraisals. Fortunately, we have over 100 years of combined experience among our team members to be able to deliver unbiased and accurate results that are in compliance with regulatory standards.

Transaction Advice

During a Merger & Acquisition, we provide advice to the buyer or the seller and we can provide a “fairness opinion” that shows shareholders that the price they are getting per share is fair.

If Bank A is buying bank B, A’s board is responsible to their shareholders to make sure they are not losing value. B’s board is likewise responsible to its shareholders for the same. Southard Financial takes on the role of verifying that our client is getting accurate value information. Cash sales are fairly straightforward, but we have the experience to deliver solid results even when complicated stock deals are involved.

Financial Reporting Valuations

Once a bank has been sold, we stay onboard to provide valuation of certain financial assets since banks have to be able to accurately report deposits, loans, etc. at a fair value on their financial statements. Since loan portfolios do not have an obvious value, a valuation company like Southard Financial is needed to deliver trustworthy results. We also specialize in determining the value of the core deposit intangible asset to be recorded.

Community Bank Bottomline

Southard Financial has been serving community banks across the United States since 1986—and we have a great reputation for community bank valuations. We can navigate through the complexities of your unique financial needs faster and more reliably than other valuation firms.

When you find yourself in the position of needing any of our services, please contact our team at 901-761-7500 (or online if that’s easier). You’ll quickly discover why our experience sets us apart!

Tags: , , ,

Recent Activities

  • David A. Harris and Mark A. Orndorff spoke at the 2019 Annual Fall Conference of the New South Chapter of The ESOP Association

    David A. Harris and Mark A. Orndorff spoke at the 2019 Annual Fall Conference of the New South Chapter of The ESOP Association held in Orlando, Florida on October 16-17. They gave a presentation titled “Can Employees Really Impact Company Value?”

  • Southard Financial facilitated the sale of Memphis' own TOPS Bar-B-Q chain

    Southard Financial facilitated the sale of Memphis' own TOPS Bar-B-Q chain
  • David A. Harris and Matthew L. Jakes spoke at the 2019 Spring Workshop of the New South Chapter of The ESOP Association

    David A. Harris and Matthew L. Jakes spoke at the 2019 Spring Workshop of the New South Chapter of The ESOP Association held in Atlanta, Georgia in February, 2019 on the topic of “Valuation Appraisal Checklist – 10 Things Your ESOP Appraiser Should be Doing”

  • David A. Harris spoke at The Fall ESOP Forum of the NCEO

    David A. Harris spoke at The Fall ESOP Forum of the NCEO (National Center for Employee Ownership) held in Albuquerque, New Mexico in October, 2018 on the topic, “Communicating Valuation: Tools, Tips, and Examples”.

  • Southard Financial negotiated the sale of and was the exclusive financial advisor to Southern Systems, Inc.

    Southard Financial negotiated the sale of and was the exclusive financial advisor to Southern Systems, Inc.
  • David A. Harris spoke at the 2018 Annual Fall Conference of the New South Chapter of The ESOP Association

    David A. Harris spoke at the 2018 Annual Fall Conference of the New South Chapter of The ESOP Association held in Birmingham, Alabama in September, 2018. He led a workshop called “The People’s Roundtable Interactive Workshop – A series of ‘Build to Last’ activities that focus on developing successful communication and team building programs for employee owners of all generations.” Speakers included Dolores Lawrence, Blue Ridge ESOP Associates; Lindsay Baublitz, SCandH Capital; David Harris, Southard Financial LLC

  • Mark A. Orndorff spoke at the ESOP Nuts & Bolts Seminar of the NCEO

    Mark A. Orndorff spoke at the ESOP Nuts and Bolts Seminar of the NCEO (National Center for Employee Ownership) held in Indianapolis, Indiana in August, 2018 on the topic of “What’s Your Company Worth? – ESOP Valuation.”

  • Southard Financial helps Transnetyx expand with growth capital

    Southard Financial helps Transnetyx expand with growth capital
  • Mark A. Orndorff spoke at the American Booksellers Association Winter Institute

    Mark A. Orndorff spoke at the American Booksellers Association Winter Institute 2018 held in Memphis, TN in January, 2018 on the topic of Succession Planning titled “What is Your ‘End Goal’?”

    iBank Tower, Suite 708 - 5050 Poplar Avenue - Memphis, TN 38157

    Phone: (901) 761-7500   Fax: (901) 761-6045