Nursing Home Adoption/Bank at Work/Facility Sponsorship
Five Year Earnings Analysis/100 Residents
The development of retail banking business is an important aspect of facility sponsorship through the Senior Housing Crime Prevention Foundation. In addition to qualified CRA credit, many banks have experienced overall yields of 10% and higher from sponsorship of the project. Below is an example of how banks across the country have capitalized on Foundation participation, illustrating a 20% new account penetration as experienced by SunTrust Bank.
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Nursing Home Community Population: |
| Residents | 100 | 100 | 100 | 100 | 100 |
| Residents' Families | 300 | 300 | 300 | 300 | 300 |
| Staff | 100 | 100 | 100 | 100 | 100 |
| Facilities Management | 10 | 2 | 2 | 2 | 2 |
| Facility Board of Directors | 9 | 3 | 3 | 3 | 3 |
| Total Extended Community | 519 | 505 | 505 | 505 | 505 |
| Percent Net Penetration | 20% | 20% | 20% | 20% | 20% |
| Number New Household Customers | 104 | 101 | 101 | 101 | 101 |
| Average Household Balance | $11,600 | $11,600 | $11,600 | $11,600 | $11,600 |
| Value New Business | $1,206,400 | $1,171,600 | $1,171,600 | $1,171,600 | $1,171,600 |
| Cumulative | $1,206,400 | $2,378,000 | $3,549,600 | $4,721,200 | $5,862,800 |
| Net Interest Margin | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% |
| Annual Pretax Income/New Business | $42,224 | $83,230 | $124,236 | $165,242 | $206,248 |
| Pretax Income/Collateral Bond@2.125% | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 |
| Annual Income | $59,224 | $100,230 | $141,236 | $182,242 | $223,248 |
| Annual Yield | 7.40% | 12.53% | 17.65% | 22.78% | 27.91% |
| Total Five Year Income | $706,180 | ||||
| Average Annual Return | 17.65% | ||||
| Investment/Loan required at $8,000 per bed | $800,000 | ||||
Economic Strength of Nursing Homes' Families and Workers (excluding residents) based on U.S. Census Data:
| Number of Households | 419 |
| Household Income | $22.3 Million |
| Net Worth | $41.9 Million |
| Residential Housing | $35.4 Million |
Typical nursing homes experience an annual turnover of 100 percent or more.
Family members outnumber residents 3 to 1 and turnover 100%+ each year.
Typical nursing homes have one staff worker for each bed and experience 100%+ turnover of staff each year.
Typical nursing homes have 1 to 10 ratio of management to workers and experience 20% turnover of management each year.
Typical nursing homes have 9 board members per 100 beds and rotate a third each year.