Bankers

Why Use CBI

Community Banc Investments is a licensed intrastate securities-dealer that specializes in marketing the stock of independent community banks in Ohio. The management has been working in this market since 1977, and is one of the few recognized professionals in this area that is considered “banker friendly.” CBI is the only market maker recommended by Community Bankers Association of Ohio.

Specialization

CBI believes that marketing bank stock involves more than just the buying and selling of shares. When handled properly, every transfer of ownership in a community bank represents a unique marketing opportunity for the bank, one we help you to utilize to the fullest. After all who should be more eager to promote and do business with their local bank than those who have just bought stock in it?

As professional stockbrokers with a specialization in analyzing and appraising community bank stocks, the job of CBI is to maintain a liquid market and fair price that reflect your bank’s true value. This will help keep your stock a stable and secure long term investment which will increase your shareholders’ enthusiasm. Since we deal exclusively in bank stock, there is no potential conflict of interest or cross-selling into other investments.

Service

We believe the past market climate of acquisitions has created a quick profit mentality in some stockholders of the independent bank. This condition was sometimes fueled by stockbrokers who promoted the “buy-out” as the most financially appealing objective of the investment.

CBI promotes the long-term capital gain aspect of community bank stock while stressing the importance of having an independent bank in the community. Our personalized service can:

1. Increase ability to raise capital.
2. Produce goodwill and loyalty towards your bank in the community.
3. Attract new business to the bank.
4. Increase liquidity for existing shareholders.
5. Provide market pricing that better reflects the true value of your bank.
6. Maintain a stable market through local sales or with a broader based ownership using our state-wide clientele. The marketing technique is determined through discussions with board and management concerning their needs and goals.

  Education

We at CBI believe there is a great need in each city and town for the services of an independent bank. All too often the local business community and townspeople realize the importance of their local bank only after it is absorbed by a larger institution that lacks the same concern for the community. Shareholder education can be used not only to help the bank remain independent, but also to increase market penetration. These goals can be reached by:

1. Educating the shareholders by explaining the outstanding long term benefits of owning a sound tax-deferred investment such as bank stock.
2. Explaining to the shareholder the difference in philosophy and service of the local community bank and the branch of a larger regional institution.
3. Emphasizing the importance of conducting banking business at “their bank” and encouraging their friends and associates to do the same.

The Shareholder can be the greatest asset in the local community bank. Unfortunately we find that they are rarely utilized to their greatest potential.

Due to the nature of the brokerage business, most of our competitors have used the buy-out of the institutions as their focus during their sales efforts. We believe that the long term growth benefits far outweigh this short term strategy and present this to existing and potential shareholders.

Three-fourths of the community banks in the state of Ohio have been merged out of existence in the last forty years, so history tells us that the average shareholder has not been properly educated on the positive benefits of their bank remaining independent.

Experience

CBI has a management team with over forty years of experience working with community banks and their stock. We offer to maintain your market while keeping your bank’s objectives in view. This relieves the insiders of the time consumed and the liability created in pricing and trading their bank’s shares. This also allows the directors and officers of the community bank to do what they do best… service the financial needs of their area.

Marketing & Consulting

Community Banc Investments earns its profit through the operating spread between bid and ask prices. The spread varies between 1% and 5% depending upon the type of marketing effort requested. Other than capital offerings of newly issued stock, the spread is derived from the market at no cost to the institution.

Consulting

First meeting with the management and the first board meeting come with no cost to the institution. Cost of follow-up meetings are as follows:

• Management meetings – $200.00 per hour
• Board meetings – $200.00 per hour
• Shareholder meetings – $200.00 per hour
• Members – $150.00 per hour

Staff time preparing for the above meetings as well as other staff services:

• Staff services – $75.00 per hour
• CBAO Member Discounted fee – $50.00 per hour

At this time there are no fees resulting from telephone consultation with our clients banks.

CBAO members receive a discount for our services. We do this to encourage membership with the CBAO. Over our last forty years we have seen this organization give our client banks the competitive edge to not only survive but to thrive competing against larger and better funded institutions.