9 Class Hours

Instructors: Greyson Tuck

This course will focus on the fundamental obligation of a community bank director or senior officer to enhance shareholder value. In the community banking context there are a myriad of different ways this can be accomplished. For some institutions enhancing shareholder value may best be accomplished by remaining independent and using one of several alternatives to enhance shareholder value without sale of the bank. For other community banks enhancing shareholder value may be best accomplished by buying another institution or selling the bank altogether. This course will contain a practical discussion on the multiple opportunities available to enhance shareholder value, including strategically planning to enhance shareholder value, sale opportunities and the merger and acquisition market. It will also provide specific steps to enhance shareholder value without sale, including effective use of the bank holding company, stock repurchase planning, employee incentives, ESOPs, S corporation, best practices for corporate governance, and other techniques.

  • Impact of the current banking environment on enhancing shareholder value
  • How to design and measure whether the institution is enhancing shareholder value
  • Basic techniques to enhance shareholder value, including:
    • Bank holding company formation and use
    • Stock redemption
    • Dividend or distribution policies
    • Alternative lines of business
    • Attracting and retaining human resources
    • Enhancing value through appropriate corporate governance
  • Mechanics of mergers and acquisitions
  • Important issues regarding negotiating mergers and acquisitions
  • Fundamentals with respect to pricing an acquisition of a bank or a branch

Annual School Session

Third Year, First Week Elective Course

General Management Track