Ewing Emerging Financial Institution Funds have been organized by Allen C. Ewing & Co. to offer institutional
and accredited investors the opportunity to invest in a diversified
portfolio of shares of De Novo banks, emerging banks, and undervalued
established growth banks, in growth markets throughout Florida and the
Southeast. An investment committee reviews potential investments based on a number of criteria, including:
Management Experience,
Markets Served,
Board Involvement and
Business Plan
The initial fund, totaling more than $8.5 million, was activated in April 2006 and is fully invested in 12 banks. Consistent with the investment criteria of the fund, all 12 banks are located in the Southeast - 6 in Florida, 2 in Atlanta, 2 in Charlotte, 1 in Durham and 1 in Augusta/Aiken. Ewing acted as sole placement agent and serves as administrator and advisor to the fund.
Ewing also serves as administrator and advisor to a second fund, totaling $5 million, which was activated in August 2007.
The merging of banks typically results in the reduction of non-interest expense of the combined companies by the elimination of duplicate personnel, duplicate functions, and other costs. Prior to the 1970s and 1980s, bank mergers were infrequent and the lifespan of banks tended to be expressed in decades rather than in years. As a result of the liberalization of these regulations, the consolidation of the industry commenced and is expected to continue for the foreseeable future.
Growth and Value of Banks
The acquisition of profitable community banks serving growth markets usually provides regional bank holding companies with quicker access to markets, as opposed to opening branch offices. Acquisitions are often accomplished with modest or no earnings per share dilution. Growth via mergers and acquisitions has become an integral component of the growth strategy of many large bank holding companies. As a result of such acquisitions and the resulting consolidation of the banking industry, the prices of bank stocks are currently trading at the high end of their historical price range, and the prices of community bank stocks throughout the United States have achieved record price levels of approximately 20.0 times trailing EPS and 2.0 times book value. (Source: SNL Bank Index - Community Banks - $250-$500MM in Assets).
Ewing Emerging Financial Institution Funds have been organized by Allen C. Ewing & Co. to offer institutional
and accredited investors the opportunity to invest in a diversified
portfolio of shares of De Novo banks, emerging banks, and undervalued
established growth banks, in growth markets throughout Florida and the
Southeast. An investment committee reviews potential investments based on a number of criteria, including: