Earnings Analysis

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 20.00% 20.00% 20.00% 20.00% 20.00%
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 $5,892,800
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 @1.00% $40,000 $40,000 $40,000 $40,000 $40,000
Annual Income $82,224 $123,230 $164,236 $205,242 $246,248
Annual Yield 4.11% 6.16% 8.21% 10.26% 12.31%
Total Seven Year Income $1,436,694
Avg. Annual Return 10.26%
Investment/Loan required at $20,000 per bed - $2,000,000
 

 

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
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    Legend:

  • Typical nursing homes experience 100%+ turnover of residents each year.
  • 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.
  • Current rate for collateral bond is 3.00%, rate to bank = 2.00%

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    Transforming Lives

    With the support of our partners, the Senior Housing Crime Prevention Foundation transforms the lives of vulnerable nursing home residents. It is hard to overstate the transformative effect a bank can have on the life of an elderly person by removing fear from their lives — fear of neglect, fear of theft, fear of needing equipment and not knowing where to turn. Click on the stories below to learn more about how Senior Crime Stoppers is transforming lives every day.

    Marquez Hillard Story
    Marquez’ Life changed in a second but with the help of Senior Crime Stoppers, his wish for a new wheelchair came true. More

    Carolyn Denny Story
    The SHCPF has helped to open the pathways of communication for Carolyn with a new laptop. More

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