Pub. 6 2016-2017 Issue 2

14 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S I t seems like every bank convention or seminar thatwe attend, one of the topics of conversation is “BankMerger or Acquisition”. We certainly have seen an up-tick in that activity since the passage of Dodd Frank. As we visit with accountants and attorneys it is obvious that activity will continue for the unforeseen future. As much as we like our worlds to stay as they are, change is always upon us. The shrinking number of Community Banks is an inevitable occurrence. There are several obvious reasons this trend will continue, cost of compliance for smaller institutions, aged and ownership without a succession plan, and just plain competitive pressures as a normal course of business. What should you do if you are a seller? First of all clean up your balance sheet, strong as- sets will always sell better than a messy loan or investment portfolio. Second, make sure your capital position is such that a buyer can afford to do the deal. Address the terms and conditions of your present debt load. What to do if you want to purchase. Set your goals through a strategic plan with your board and Sr. Management team, and inform your regulators as to your plans. Build an acquisition team which should include spe- cific internal management representatives as well as external team members such as your accounting firm, legal professionals, a bank stock lender and possibly a sub debt provider. Look for professionals in their respective fields who have had experience in the M&A activity. Use them to getting the right things done at the right time. You will need to determine if you are in a position to raise more capital around the board table or if you want to dilute present ownership by bringing in additional investors. Do you want to do an all cash deal or include the seller as a new stockholder? At Bell we have the expertise in our Correspon- dent Banking Department to assist you as a bank stock lender through approval of a line of credit or term loan. The earlier you bring us in as a part of the acquisition team the smother the whole process will go. Just give us a call and on a very confidential basis we can join your team and work with you during the early stages of a purchase.  FEATURE ARTICLE GARY KELLER BELL BANK Bank Merger and Acquisition Set your goals through a strategic plan with your board and Sr. Management team, and inform your regulators as to your plans. Gary Keller