- 8 - Next, Mr. Wahlgren correspondingly adjusted the historical book value of the Company assets. He especially concentrated on the value of the Company’s 94.6-percent interest in the Bank, which he computed on the basis of the adjusted book value of the stockholders’ equity in the Bank. The adjustments to the assets, liabilities, and stockholders’ equity amounts on the Company’s books are described below: Balance Sheet Items Hist. BV Adjustment Adjusted BV Assets $4,612,582 $1,502,081 $6,114,663 Liabilities 9,850 2,534 12,384 Stockholders’ equity 4,602,732 1,499,547 6,102,279 After making adjustments to both the Company’s and the Bank’s books, Mr. Wahlgren decided to establish the fair market value of the Company on a net asset value basis. Because the Company’s primary asset consisted of the 94.6-percent ownership interest in the Bank (and there were minimal liabilities), Mr. Wahlgren derived the value of the Company by primarily considering the Bank’s independent fair market value. In order to arrive at the fair market value of the Bank, Mr. Wahlgren evaluated five factors which he had previously relied on to compare privately owned Nebraska banks sold within 12 months before or after November 1992: (1) Bank size, (2) market served, (3) historical growth of deposits, (4) loan portfolio quality, and (5) profitability. After considering the above factors (in terms of the adjusted book values of the Bank) and using thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011