By: Paul Rudersdorf | SFB CEO & President

Not every bank is equipped to finance the purchase of an insurance agency simply because they don’t understand the nuances of the industry. At Security Financial Bank (SFB), we’re different. When we say we get it – we really do. We understand that excellent management leads to business stability and customer retention. We see your book of business as a predictable earnings stream.

But, it wasn’t always like that. Initially, our lenders and credit analysts were uninformed about what comprised the financial viability of an insurance agency. So, we decided to get educated.  

First, we needed to have a basic understanding of the industry. A CPA firm with industry expertise met with our lending and credit teams over several sessions to educate us on how agencies are valued and how to analyze and dissect an agency’s “book of business.” This was an invaluable exercise. 

Subsequently, we had the opportunity to educate our Board of Directors so all areas of the bank had a strong understanding of what makes an insurance agency prosper. 

And eventually, we even created a separate section in our loan policy to address this significant niche.

Over the years, we have learned that for a bank to partner in lending with an insurance agency, it requires much more than turning on a switch to enter this lending arena. There is work to do and knowledge to acquire.  At SFB, our commitment began with education and has taken years to refine by doing transactions that make sense.  

If you would like to learn more about how we can use our industry expertise to help you with your next project, please contact us. We look forward to partnering with you.