Wednesday, November 30, 2022

Capital is the lifeblood of banking. Whether you have too much capital or not enough, Moran Consulting Group can help. Please select one of the subcategories to the right for additional information.


A well-planned dividend strategy provides capital for bank growth, cash for shareholders and flexibility to deal with unforeseen events. Take a step beyond plain old cash dividends and let us help you develop creative distribution structures that offer shareholders flexibility, tax advantages and reinvestment opportunities.


An un-leveraged bank holding company provides the bank with a source of bank equity capital to support the bank’s growth plan or to augment the bank’s capital for regulatory purposes. Developing a capital augmentation plan using holding company leverage can be tricky. We can help you through the math and provide guidance to the board throughout the process.


Does your business model require more common equity? Does dilution of existing shareholders make sense? We can help you through the math and provide pricing guidance to the board and management team.


Can we afford to branch? At what size do we run out of capital? What should we do if a shareholder wants to sell his stock back to the bank? We can help you through these questions, and many more, with our capital adequacy modeling and consulting. Using a simple model and a minimal number of assumptions, we can provide rational, empirical support for a variety of plans in a format suitable for board and regulatory presentation.


Often, a cost/benefit analysis of being a small reporting company indicates that it would be beneficial to deregister. We have experience taking banks and holding companies private through a stock buyback while complying with FDIC and SEC regulation for such transactions.


If your bank is unable to effectively use its existing capital through profitable balance sheet growth, stock repurchases may be an effective way of increasing returns and providing liquidity to your shareholders.Call us for information on how we can help you make the most of your capital through planned stock repurchases.


Since 1997, banks and bank holding companies have been eligible for Subchapter S election, which shifts the corporate tax burden to the company’s shareholders and eliminates the personal dividend tax liability, resulting in tax savings of 15 to 20% for most institutions. With over 33% of the country’s banks currently operating as Sub-S entities, the competitive disadvantage of retaining a C-Corp structure is becoming material. Recent changes in Sub-S qualification rules have opened the door for more conversions. Since 1997, we have assisted in over 40 community bank Sub-S elections. Let our team show you the realistic benefits and challenges of the election—you might be surprised at how easy and rewarding it can be.

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