If you are looking for banks for sale in VA that is the right size and location for your business, we have listings of banks and credit unions that may be a good match. When you’re buying a bank, there’s a lot to think about: how much money does it bring in? What is its profit margin? Is it stable? Does it have room to grow? Do you like the staff and management team? Asking questions like these can help you make an informed decision on which bank (or credit union) is best for you. Here are some banks for sale in Virginia.
Buying a Bank
The Basics Buying a bank is one of the best investments you can make. Many banks are for sale, and it’s easy to find out if there’s one you can buy. We have researched for you, and we’ll guide you through the steps to make the right choice. It’s essential to buy a bank for its track record of growth. When buying a bank, you’re purchasing a trusted, solid franchise that will operate as a separate entity from the bank you currently use. Bank for Sale in Virginia: Best Candidate You want a bank that has already been around for a few years. You don’t want to buy a bank that has opened recently. Why?
Why buy a bank?
There are many reasons to buy a bank. For example, you may want to buy a bank that will increase in value when interest rates rise. Or you may be able to buy a bank with a lower “return on equity” (ROE) than your other investments. Let’s look at some of the most common reasons why people acquire banks. Savings Banks are regularly sold for attractive prices due to their cheap cost of capital (interest rate) and high return on equity (ROE). Most bank investors invest in stocks or bonds, thus they are interested in the ROE on the bank’s assets. Banks generate revenues through loans and fees. It means they charge higher interest rates to borrowers and lower rates to depositors.
A good candidate for a bank
In 2018, the average cost of a bank in Virginia was $85.1 million. It’s lower than the national average of $88.8 million but still quite a significant sum. A substantial bank in good financial condition would command at least $100 million to be sold. The majority of banks in Virginia are small, one- to three-branch operations. Typically, these banks have less than $10 million in assets. These are not community banks like Wells Fargo & Co (NYSE: WFC), although some of these organizations are still. These banks are usually operated for business customers, with little exposure to consumer lending. Some banks on our list are larger than the average Virginia bank.
How much to budget
When deciding what to buy, buyers should make sure to account for contingencies and maintenance fees. Those are usually included in the selling price. If you want a bank to stay in your family for decades to come, you need to account for these fees. If you’re buying a small bank that only has two branches and doesn’t take many deposits, you can probably swing it. But if you’re looking to open a high-tech bank, you’ll probably need to invest more. Would you mind starting with the big banks because they will have more resources to pay off any equipment loans they took out to help build a new facility? Finding a bank for sale is like shopping for a house. Buyers should search the banks within the state in which they plan to operate.
Here are lists of cities and counties in your area where you may find a broker or agents for your bank;
• Arlington County: Arlington
• Fairfax County: Fairfax, Alexandria, Reston, Herndon, Vienna, Great Falls,
Falls Church, Oakton, Chantilly, Centreville, McLean, Burke, Clifton,
Lorton, Fairfax Station, Baileys Crossroads, Fort Belvoir.
• Loudoun County: Sterling, Ashburn, Leesburg, Hamilton, Brambleton,
Purcellville, Stone Ridge, South Riding, Middleburg, Aldie, Round Hill,
Upperville, Lovettsville, Bluemont, Paris, Waterford, Hillsboro.
• Prince William Co.: Woodbridge, Gainesville, Bristow, Haymarket, Occoquan, Dumfries, Dale City, Nokesville.
Manassas, Manassas Park, Manassas Park City are independent cities in the
Prince William County region.