Description
The PPT explaining about analysis of Ever Trust Bank Case
Ever Trust Bank – Analysis
Subsidiaries
EverTrust Financial Group, Inc.
Mutual Bancshares Capital
EverTrust Bank
Sound Financial
EverTrust Asset Management
Strategy and Business Model
Strategy to move from a community-based thrift into a diversified financial services company Increases percentage of revenues from non-interest income and develop revenue stream less dependant on cyclical interest rate changes Focus on three business lines - Retail Banking, Commercial Real Estate Lending and Wealth Management Undertook significant investment in Human Capital, Management, Infrastructure and products and services
Strategic Initiatives over the years
1999
• Completed mutual-to-stock conversion
2000
• Strengthened management by filling positions • Upgraded data processing platform
2001
• Consolidated banking subsidiaries by merging Commercial Bank of Everett into EverTrust Bank • Changed name of primary banking subsidiary • Launched Commercial Mortgage Banking Group • Launched EverTrust Asset Management • Launched Private Banking Services
Contd…
2002
• Opened Business and private banking office • Created position of chief credit officer • Realigned business units and created a single reporting structure • Closed branch to improve branch and financial efficiency
2003
Managed excess capital through share repurchase program and cash dividend policy
Customers willing to pay premium in the three business lines on account of its expertise and trademark customer service
Business Lines
Ever Trust Bank
Commercial Real Estate Group
Private Client Group
Retail Banking Group
Portfolio Real Estate Lending
Commercial Mortgage Lending
Retail Branches
Brokerage Services
Customer Care Center
Business Banking
Ever Trust Asset Management
Private Banking
Wells Fargo
Lines of Business
? Community Banking - 33%
? Investments and Insurance – 15%
? Home Mortgage/Home Equity - 20% ? Specialized lending - 14% ? Wholesale Banking - 7% ? Consumer Finance - 7% ? Commercial Real Estate - 4%
Wells Fargo Strategic Initiatives
? 15% of banking revenues from investments,
brokerage, trust, private banking and insurance. Target to increase it to 25% ? Goal: To grow revenue and EPS at double digit compound rate
? Growing revenue twice as fast as expenses and
improving efficiency ratio ? Cross Selling: Selling more to existing customers (at least 8 products to each customer). Currently the ratio is 4.6 for households and 5.3 for commercial/corporates. ? Losing fewer customers every year
Synergies and Cost Savings
? Boost in revenues from Commercial Real
Estate Sector. EverTrust has 43% loans given to this sector ? Acquisition in line with strategy (Double digit compounded growth of EPS and Revenues) ? Access and spread of operations in Western United States. Chances to improve cross selling of products and increasing its customer base ? High proportion of time deposits from EverTrust (46.81%). Reliable source of funds to match advances
Organization Structure
Comparison
Key Indicators
Parameters ROE ROA Net Interest Margin NPA to Total Assets EPS (Diluted) ($) Interest Income ($) Non Interest Income ($) Net Income ($) NPA to Total Loans 19.6% 1.71% 4.88% 0.36% 4.09 20 Bn 12 Bn 7 Bn 0.55% Wells Fargo Ever Trust Bank 7.6% 0.96% 3.66% 0.56% 0.95 43 Mn 6 Mn 7 Mn 0.6% 90 Mn
Shareholder’s Equity ($) 37 Bn
Loan Portfolio Mix
Deposit Mix
Thank You!!!!!
doc_341955403.ppt
The PPT explaining about analysis of Ever Trust Bank Case
Ever Trust Bank – Analysis
Subsidiaries
EverTrust Financial Group, Inc.
Mutual Bancshares Capital
EverTrust Bank
Sound Financial
EverTrust Asset Management
Strategy and Business Model
Strategy to move from a community-based thrift into a diversified financial services company Increases percentage of revenues from non-interest income and develop revenue stream less dependant on cyclical interest rate changes Focus on three business lines - Retail Banking, Commercial Real Estate Lending and Wealth Management Undertook significant investment in Human Capital, Management, Infrastructure and products and services
Strategic Initiatives over the years
1999
• Completed mutual-to-stock conversion
2000
• Strengthened management by filling positions • Upgraded data processing platform
2001
• Consolidated banking subsidiaries by merging Commercial Bank of Everett into EverTrust Bank • Changed name of primary banking subsidiary • Launched Commercial Mortgage Banking Group • Launched EverTrust Asset Management • Launched Private Banking Services
Contd…
2002
• Opened Business and private banking office • Created position of chief credit officer • Realigned business units and created a single reporting structure • Closed branch to improve branch and financial efficiency
2003
Managed excess capital through share repurchase program and cash dividend policy
Customers willing to pay premium in the three business lines on account of its expertise and trademark customer service
Business Lines
Ever Trust Bank
Commercial Real Estate Group
Private Client Group
Retail Banking Group
Portfolio Real Estate Lending
Commercial Mortgage Lending
Retail Branches
Brokerage Services
Customer Care Center
Business Banking
Ever Trust Asset Management
Private Banking
Wells Fargo
Lines of Business
? Community Banking - 33%
? Investments and Insurance – 15%
? Home Mortgage/Home Equity - 20% ? Specialized lending - 14% ? Wholesale Banking - 7% ? Consumer Finance - 7% ? Commercial Real Estate - 4%
Wells Fargo Strategic Initiatives
? 15% of banking revenues from investments,
brokerage, trust, private banking and insurance. Target to increase it to 25% ? Goal: To grow revenue and EPS at double digit compound rate
? Growing revenue twice as fast as expenses and
improving efficiency ratio ? Cross Selling: Selling more to existing customers (at least 8 products to each customer). Currently the ratio is 4.6 for households and 5.3 for commercial/corporates. ? Losing fewer customers every year
Synergies and Cost Savings
? Boost in revenues from Commercial Real
Estate Sector. EverTrust has 43% loans given to this sector ? Acquisition in line with strategy (Double digit compounded growth of EPS and Revenues) ? Access and spread of operations in Western United States. Chances to improve cross selling of products and increasing its customer base ? High proportion of time deposits from EverTrust (46.81%). Reliable source of funds to match advances
Organization Structure
Comparison
Key Indicators
Parameters ROE ROA Net Interest Margin NPA to Total Assets EPS (Diluted) ($) Interest Income ($) Non Interest Income ($) Net Income ($) NPA to Total Loans 19.6% 1.71% 4.88% 0.36% 4.09 20 Bn 12 Bn 7 Bn 0.55% Wells Fargo Ever Trust Bank 7.6% 0.96% 3.66% 0.56% 0.95 43 Mn 6 Mn 7 Mn 0.6% 90 Mn
Shareholder’s Equity ($) 37 Bn
Loan Portfolio Mix
Deposit Mix
Thank You!!!!!
doc_341955403.ppt