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Guide to the Bank Valuation ModelThe bank valuation model uses Asset growth rates, SNL's Performance Analytics, and discounted cash flow analysis to estimate the value of a firm.

Legend

lack font ! Pulled from "atabase or #alculated

$sers can in%ut %ublic or %rivate banks into this model using Ticker or SNL &".

e(uired &n%uts)

* "iscount ate) The rate at which the cash flows determined by the model will be discounted back to %resent value. This ratio can be based on a combination of marke

* Terminal alue -ulti%le T-/) This in%ut has two ste%s. 0irst choose if you would like to work with a Price to 1arnings -ulti%le P21/ or a Price to Tangible ook -ulti

Stand Alone Model Methodology:

The bank valuation model %ulls two %eriods of data, your base %eriod and one historical reference %eriod.

0uture estimated %eriods are %ro3ected forward either by sim%ly carrying base %eriod values forward or by a%%lying some sim%le logic surrounding ma42min values.

Sensitivity Analysis

The sensitivity analysis table shows multi%le varied combinations of discount rates and terminal values. This will demonstrate how 0irm alue would change by changing

The sensitivity analysis gra%h shows multi%le discount rates assuming Terminal alue -ulti%le is held constant at the user in%ut rate.

-odel Pro3ections and -arket "ata

0or %ublic com%anies you can see the model %ro3ections for stock %rice, P2, P2T and 0actSet earnings estimates so you can com%are your model assum%tions to the

Acquisition Model Methodology:To value a bank from the %ers%ective of an ac(uisition select the 'Ac(uisition5-odel' tab. 6hen selecting the Ac(uisition model you will introduce two new in%uts, and th

Ac(uisition &n%uts)

%eriod immediately after the base %eriod.

-7A &n%uts)

See results of the com%arable deal metrics in the -7A #om%arable "eal -etrics section.

lue font! 6ritable &n%ut

"atasets) egulated "e%ositories and -arket "ata

* #om%any) This is the com%any that you would like to estimate the value for. This can be from the %ers%ective of an investor or buyer looking at an outside com%any, ofirm, a first ste% or second check when considering ac(uisitions, or to com%are themselves to market valuations.

* Period) The is the 8base %eriod8 for the model, the date selected here will %o%ulate the second column in the re%ort, the first column being a historical reference. &f youon year end terms, and will re%resent the remainder of the base %eriod's year. 14am%le) Period ! :; months re

Total Assetsis calculated over time by the Annual Asset ?rowth ate, the first in%ut in the model. This growth rate is ca%%ed at . This is used to

com%arable in terms of time frame, geogra%hic location, and siEe using total assets of the target com%any. &n ste%

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&ost Sa"ings After Ta-. The savings are added into $et ncomewithin the ank aluation -odel./ne Time )eal %-*enseas a dollar value is calculated by the user

as a . of Total Assets. This is deducted from firm value in the %eriod immediately following the base %eriod.

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ges on their own

he model to be

%eriod by default.

erest

ase year.d.

inal value is also

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0ome BancShares1 nc2

,ro4ected Value of 3irm '5666( 5 7781696 ,ro4ected ,er Share Value of 3irm '5(

Dollars in ($000) 699< Act2 69L8 Act2 698< %s

o a sse s , , , , , , , ,Annual Asset ?rowth ate @/ G.:G ;.JH ;.JH ;.J

g n & ear es g n & ear a # # # # LiabilityCwtd orrowing #ost @/ ;.:> ;.:K ;.:K ;.:

os o orro ngs # # # # Avg orrowing2Avg &ntCbear Liab @/ >.JF I.HI I.HI I.H

a n on e n os on g # # # # #ost of &nterest earing Liab @/

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0ome BancShares1 nc2

,ro4ected Value of 3irm '5666( 5 7981679 ,ro4ected ,er Share Value of 3irm '5(

Dollars in ($000) 699< Act2 69L8 Act2 698< %st2

Total Assets F,J;G, F,>K>,GGH G,:K;,;H;

nna sse ro a e # # # # AmortiEation of &ntangibles :,I:H :,H:F JI< :,H:F

n ang e sse s , , , ,Tangible Assets TA/ F,KFK,IFG F,I;

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,eer Analysis

&om*any $ame ,eer A"erage ,eer Median 0ome BancShares1 nc2

1nd of Period "ate m2dd2yyyy/ ?#86#69

Total Assets D;;;/ >KI,FG>,:;K F:H,;I 6

Avg &ntCbear "e%s2 Avg &ntCbear Liab @/ H;.:H HJ.;H ?92;8

#ost of orrowings @/ J :.;G 2;6

Avg orrowing2Avg &ntCbear Liab @/ :>.HF :F.>F ;29

Avg 1arning Assets2 Avg Assets @/ II.>I I>.>> ;>2=8

Noninterest &ncome2 Avg Assets @/ F JF.H; =726

#ommon 1(uity D;;;/ >:,:J:,J;; FJ,>HF:,H;K,:>I F

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,ro"ide

3ifth Third Bancor*

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