Alliance Financial Corp. (ALNC, Financial) filed Annual Report for the period ended 2010-12-31.
Alliance Financial Corp. has a market cap of $147.54 million; its shares were traded at around $31.2 with a P/E ratio of 12.58 and P/S ratio of 1.82. The dividend yield of Alliance Financial Corp. stocks is 3.85%. Alliance Financial Corp. had an annual average earning growth of 4.8% over the past 10 years.
On October 6, 2006, Alliance completed its acquisition of Bridge Street Financial, Inc. (Bridge Street) and its wholly-owned subsidiaries, Oswego County National Bank (OCNB) and Ladds Agency Inc. (Ladds), an insurance agency. In connection with the acquisition, Alliance issued approximately 1,292,000 shares of common stock valued at $38.1 million, and paid cash of $13.2 million for total merger consideration of $51.3 million. At the time of the acquisition, Bridge Street had $219.3 million in assets, $148.3 million in gross loans, and $169.2 million in deposits. In the acquisition, Bridge Street was merged into Alliance, Ladds became a wholly-owned subsidiary of Alliance, and Oswego County National Bank was merged into the Bank. In December 2010, we sold substantially all of the assets of Ladds and discontinued its operations.
However, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), enacted on July 21, 2010, the ability of bank holding companies to continue to include trust preferred securities in Tier 1 capital will be limited in the future. Under Section 171 of the Dodd-Frank Act, the Federal Reserve must promulgate regulations implementing capital requirements for bank holding companies with assets greater than $500 million that are no less stringent than those applicable to insured depository institutions. Since depository institutions may not count trust preferred securities in Tier 1 capital (but may count them in Tier 2 capital), bank holding companies with over $500 million in assets will no longer be able to do so. Thus, trust preferred securities issued on or after May 19, 2010 may no longer be counted in Tier 1 capital of bank holding companies with over $500 million in assets. Trust preferred securities issued before May 19, 2010 by bank holding companies with assets of less than $15 billion as of year-end 2009 may continue to be included in Tier 1 capital.
In calculating assessment rates, the rule adopts a new scorecard assessment scheme for insured depository institutions with $10 billion or more in assets. It retains the risk category system for insured depository institutions with less than $10 billion in assets, assigning each institution to one of four risk categories based upon the institutions capital evaluation and supervisory evaluation, as defined by the rule.
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Alliance Financial Corp. has a market cap of $147.54 million; its shares were traded at around $31.2 with a P/E ratio of 12.58 and P/S ratio of 1.82. The dividend yield of Alliance Financial Corp. stocks is 3.85%. Alliance Financial Corp. had an annual average earning growth of 4.8% over the past 10 years.
Highlight of Business Operations:
On February 18, 2005, the Bank acquired a portfolio of personal trust accounts and related assets under management from HSBC, USA, N.A. The Bank assumed the successor trustee role from HSBC on approximately 1,800 personal trust accounts and further assumed approximately $560 million in assets under management. Combined with its existing trust business, the Bank now manages approximately $829 million of related investment assets at December 31, 2010.On October 6, 2006, Alliance completed its acquisition of Bridge Street Financial, Inc. (Bridge Street) and its wholly-owned subsidiaries, Oswego County National Bank (OCNB) and Ladds Agency Inc. (Ladds), an insurance agency. In connection with the acquisition, Alliance issued approximately 1,292,000 shares of common stock valued at $38.1 million, and paid cash of $13.2 million for total merger consideration of $51.3 million. At the time of the acquisition, Bridge Street had $219.3 million in assets, $148.3 million in gross loans, and $169.2 million in deposits. In the acquisition, Bridge Street was merged into Alliance, Ladds became a wholly-owned subsidiary of Alliance, and Oswego County National Bank was merged into the Bank. In December 2010, we sold substantially all of the assets of Ladds and discontinued its operations.
However, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), enacted on July 21, 2010, the ability of bank holding companies to continue to include trust preferred securities in Tier 1 capital will be limited in the future. Under Section 171 of the Dodd-Frank Act, the Federal Reserve must promulgate regulations implementing capital requirements for bank holding companies with assets greater than $500 million that are no less stringent than those applicable to insured depository institutions. Since depository institutions may not count trust preferred securities in Tier 1 capital (but may count them in Tier 2 capital), bank holding companies with over $500 million in assets will no longer be able to do so. Thus, trust preferred securities issued on or after May 19, 2010 may no longer be counted in Tier 1 capital of bank holding companies with over $500 million in assets. Trust preferred securities issued before May 19, 2010 by bank holding companies with assets of less than $15 billion as of year-end 2009 may continue to be included in Tier 1 capital.
In calculating assessment rates, the rule adopts a new scorecard assessment scheme for insured depository institutions with $10 billion or more in assets. It retains the risk category system for insured depository institutions with less than $10 billion in assets, assigning each institution to one of four risk categories based upon the institutions capital evaluation and supervisory evaluation, as defined by the rule.
Read the The complete Report
