Financial Model

Senior Housing Crime Prevention Foundation Facility Sponsorship

To sponsor one (1) senior housing facility with 100 residents requires a loan or investment of $800,000.00 ($8,000.00/resident).
The Foundation receives 1.875 % of the yield from the bond purchased to support the residents and provide the Senior Crimestoppers program & Time of Your Life Event ($15,000.00/year).
The sponsoring bank receives all of the yield over the 1.875% on the bonds selected.
519 individuals are captive prospects.
Assume an average bank customer deposit amount of $11,600.00 per household.
Assume the sponsoring bank’s net interest margin is 3.5%.
The sponsoring bank needs to attract 37 customers (out of 519 available) to recover the yield give up.
This equates to a 7.1% penetration of the captive market audience to recover the yield give up.

Banks participating in the Foundation are averaging a 20% penetration of the total senior housing facility environment of new retail banking customers.
Holding true to the aforementioned assumptions and including the income from the bond purchased, this equates to an overall yield of 7.40% for Year 1.