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2012 Seattle Fair Value Congress: Fair Valuation of Core Deposit Intangibles in Bank Acquisitions

Business Valuation

 2012 Seattle Fair Value Congress: Fair Valuation of Core Deposit Intangibles in Bank Acquisitions
CPE Credit

Program Type: VideoCast (Audio,Video, PPT Presentation)
Program Level: Basic
Prerequisites: Previous training or experience with the fundamentals of accounting, finance, economics, and business writing.
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credits: Two (2) Hours
Fields of Study: Auditing
Item Number: 12PFVSE0227
Shipping Weight: 0lbs. 0oz.
Price: $110.00
Program Description

Session Summary: A core deposit intangible (CDI) asset arises when a bank has a stable deposit base composed of funds associated with long-term customer relationships. The intangible asset value derives from customer relationships that provide a low-cost source of funding. CDIs are common assets, as most banks have some level of stable depositors to whom they pay interest at a rate lower than the rate they would pay alternative funding sources.

CDIs account for a significant portion of a bank's intangible value. CDIs must be evaluated whether the acquisition is a healthy bank or a failed bank acquired from the Federal Deposit Insurance Corporation. Since 2000, the average CDI value in a bank acquisition was $3 million, with actual values ranging from several tens of thousands of dollars to many billions of dollars. Thus, it is important to understand which factors contribute to CDI value.

Learning Objectives

After completing this webinar, attendees will be able to:

- Explain Fair Value
- Utilize knowledge of CDIs and other assets

Who Should Attend

Anyone with an interest in Fair Value and those who could not attend the 2012 Seattle Fair Value Congress


Daniel McConaughy, PhD, ASA
Dr. McConaughy is a Professor of Finance at California State University, Northridge, where his area of expertise is business valuation and corporate finance; he is also a Director with Crowe's Valuation Services practice. He has published more than 20 papers in academic and industry journals and has more than 12 years of business valuation experience.