In the central community of Stevens Point, Wis., The Pineries Bank serves its commercial and retail customers with a full range of loan and depository products. Established in 1997 with $6 million in assets, the locally owned bank has since grown to $85 million. To help ensure the bank remains locally owned and operated for years to come, The Pineries Bank implemented an Employee Stock Option Plan (ESOP) in 2004. 

Situation
The retirement plan at The Pineries Bank requires an annual business valuation for recordkeeping purposes and so participants know what their plan is worth. When first seeking a valuations firm, the bank discovered that fees charged by independent third-party companies for performing business valuations vary widely in the industry. So does experience. Because Wipfli is well-versed in business evaluations and in government compliance requirements for ESOP valuations, The Pineries Bank chose to partner with Wipfli for its annual business valuations.   

Strategy
Since that first valuation in 2003 until today, what was a service has now evolved into a long-term relationship. Every year, Wipfli performs a custom-tailored valuation to address and satisfy the needs of The Pineries Bank. Through information gathering, analysis and well-documented valuation methodology, its accredited appraisers work to determine the appropriate value of The Pineries Bank. 

In addition to reviewing business conditions and assets at The Pineries Bank, Wipfli examines the relevant economic and industry specific factors that can affect the market and subsequently the bank’s value. 

Each year, Wipfli continues to provide an expert valuation opinion in a comprehensive report that determines the bank’s fair market value and gives the bank’s shareholders and plan participants a reliable, trustworthy value.

Benefits
By working with Wipfli year after year, The Pineries Bank receives an annual valuation that provides consistency over time helping the bank maintain a successful ESOP. Because of Wipfli’s deep knowledge of the banking industry and the long-term relationship, the bank has benefited in other ways. It saves valuable time and resources by relying on Wipfli’s level of valuation expertise, industry knowledge and credibility each and every year. 

Relationship Executive(s)

Kevin Janke, CPA, ABV, Valuation, Forensic and Litigation Services Partner