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Juniper Research, which serves the digital technology industry, predicts that more than 3 billion people worldwide will be banking on a mobile device by 2021. eMarketer, another digital marketing research firm notes that 115.6 million folks in the U.S. already use mobile banking at least once a month.

If you are one of the millions of mobile banking advocates, you must have occasionally wondered just how safe and secure is this app-based technology? Is convenience worth the risk of exposing your bank accounts and essential financial transactions to a hacker?

“From a banking perspective, mobile services offered directly from banks and downloaded through APP stores are highly secure and utilize a variety of technology to protect end users from any outside interference,” said Legacy Bank Chief Information Officer Chad Pfeif. “Safety is always the primary concern for finance providers large or small. Banks across the country are investing in security and watching daily for any rapid change in technology that could put users at risk,” added Pfeif.

“With so many different mobile banking apps and varied types of technology, it really is difficult for someone to hack into a person’s mobile account,” commented Pfeif. “Actually, the biggest security risk faced by mobile banking users comes from the user themselves. What you do and don’t do on your own to protect your account from being compromised matters. It’s no different than taking precautions to protect your home from intruders.”

According to Pfeif, security starts by downloading a registered mobile banking app through an iPhone or android app store. Interested users can typically find information about how to access their bank’s app on any sales literature or social media promotion offered by their bank. Link’s to download secure banking app’s can also be generally found on bank websites.

“It just takes a small amount of effort to become a diligent mobile banking user. A few easy precautions like password protecting your mobile device, using complex passwords, and not banking while on public WiFi can easily counter most of the more popular techniques used by unscrupulous hackers,” Pfeif adds. “These measures take just a few seconds but go a long way toward denying anyone access to your money and financial information.”

He cautions against following a link or any information that is sent to you via text message or email to access your bank account. Conversely, never text or email your account information or password to someone. Banks will not ask you to access your account through these methods. If you do text or email private account information, you may have given access to your bank data to people you don’t want to have it.

Chad Pfeif is the chief information officer of Legacy Bank with 13 years in banking. Pfeif completed the Graduate School of Banking at Colorado and oversees nine Colorado branch locations. He is an active member of his community and takes pride in being a resident of Pueblo County.

Article Featured in the Pueblo Cheiftan: Link to Article

Buena Vista, COLO - Legacy Bank is excited to announce the ground breaking of a new 3,100 square foot banking facility in Buena Vista that happened on Wednesday, October 7 at 2 pm. The event took place at 430 East Main. The site is across the street west from the Heritage Museum and is located on a property formerly belonging to the Lambert family, longtime residents of Buena Vista.   

The bank, which formally opened in Buena Vista in December 2018, is the next step in strengthening community banking in the cozy mountain town. “Buena Vista is about people and so is Legacy Bank,” states longtime Buena Vista resident and Senior Vice President Dave Reyher. “Since our opening we have been welcomed warmly by both residents and businesses. We are thrilled to be adding to the development of Main Street and bringing even more banking services to the community.” 

This new facility has been in the works for over a year, with bank owners looking to invest in real estate just four short months after moving into the community.  The property, purchased in April of 2019, was part of a deeper community oriented objective that aligns with bank culture. 

“Legacy Bank is built around community. That means our ownership and staff believe in investing in the residents and businesses we serve. From volunteering, sponsoring, and just lending a helping hand, you can see Legacy employees in every part of our community working to have a positive impact,’” adds Reyher. “Investing in a brick and mortar facility that adds to the development of critical business corridors in Buena Vista solidifies our commitment to this community.” 

Legacy Bank and the Buena Vista Historic Preservation Committee, have been working in partnership to ensure the bank design respects and honors the historic nature of Main Street. Diesslin Structures, Inc., serving at the local contractor, was selected for their proven success record on projects throughout Chaffee County. 

The main entry for the bank will be on North Court Street with a walk-up ATM prominently located on the corner of the building at Main and Court.  A two-lane drive-up and a night drop at the rear of the building are part of the design.  The bank’s 3,100 square feet of interior space will also offer fresh retail/office rental space with several street level opportunities facing Main Street.  

“In an effort to be mindful of our community, Legacy Bank has opted to construct additional parking spaces across the alley to help improve downtown parking and a staging area for cars if the drive-up facility is at capacity,” adds Reyher. “We understand that being a good neighbor is equally as important as being a valuable business provider.” 

With that in mind, Legacy Bank worked to protect local landscaping around the project as well. Due to zoning requirements, the old apple tree located on the corner had to be taken down.  Analysis showed that any prospect of relocating the tree to protect its survival were non-existent.  To honor that tree, Legacy Bank will be planting a new apple tree at Turner Farm. 

Legacy Bank hopes to open shortly after Memorial Day, 2021. Until then, bank operations will continue at their current location on 413 E. Main Street. Operational updates can be found on the company’s website, or on the Legacy Bank Facebook page.




Buena Vista Bank Location Page

Part 2

The first article in this series on selling a business during the pandemic reported that sales of small businesses are up again after a significant drop in the spring and discussed the importance of establishing a value for a company to be sold.

This story will review financial information sellers should compile for potential buyers or their lenders to convey their firm’s financial condition. Space does not allow for detailed discussion of these documents so sellers might wish to consult with their CPAs to refine the process.

A potential buyer will want to review a seller’s profit and loss statements for the past few years, which will show sales revenue as well as other income from rentals, interest paid by financial institutions or the sale of property, equipment or assets.

It will also show production, and other operating costs. The first category includes raw materials, equipment purchases, leases or repairs, advertising, marketing, travel and entertainment expenses. The operating cost portion includes salaries, employee benefits, insurance premiums, rent or mortgage payments, utilities, office-related expenses, depreciation of equipment, taxes, professional fees and loan repayments.

“Of particular interest to a buyer will be the net income component of the profit and loss statement,” said Mark Dunsmoor, senior vice president of Legacy Bank. “This is calculated by subtracting a firm’s expenses from its total revenue. If expenses are less than revenues, owners have generated a profit. If not, the statement reflects a loss.”

A potential buyer will also want to see a current balance sheet covering the seller’s assets and liabilities. Assets may vary depending on the business but should include cash-on-hand and assets that can be converted into cash within a year, rent or insurance premiums paid in advance and funds owed the company according to Dunsmoor.

Other assets would include an inventory of completed products, plus raw materials or parts to produce more items. Fixed assets such as land, buildings, machinery, office and technology equipment and other durable items will be documented, as well as, the value for intangible assets such as a company’s good reputation, its solid customer base, perhaps a highly recognized brand, proprietary technology, trademarks and patents or a specialized workforce.

The liabilities section of the balance sheet should include current liabilities that need to be paid within the next 12 months such as accounts payable, short-term loans, payroll, taxes, credit card bills, interest on debt, said Dunsmoor. Long-term liabilities include costs that do not have to be fully paid within the next year such as mortgages or the total balance on loans the company may have.

A third element of the balance sheet reflects owners' equity which represents the owner's or stockholders’ investment in the business. This figure is calculated by subtracting the company’s liabilities from its assets.

A buyer will also want to review the seller’s cash flow statement which reflects a company's short-term earning potential, showing anticipated revenue as well as expected expenses.

Finally, sellers should be able to provide both personal and company tax records from the past few years, which can be used to collaborate data presented in the financial statements.

Mark Dunsmoor is a senior vice president of Legacy Bank with 40 years of banking expertise. Dunsmoor has been recognized as the Greater Pueblo Chamber of Commerce Charles W. Crews Business Leader of the Year and volunteers in many capacities including on the local hospital board.

Article Featured in the Pueblo Cheiftan: Link to Article

Part 1

Were you planning to sell your business in 2020, but the pandemic put that idea on hold? You’re not alone. According to the BizBuySell’s Insight Report, small business transactions dropped almost 40 percent during the second quarter of this year. But take heart, small business sales are bouncing back from April lows.

According to Calhoun Companies, a Minnesota-based brokerage, there are two prevailing types of buyers today. The largest buying group includes those seeking profitable, pandemic resilient businesses. Buyers in the second group are looking for depressed or closed businesses which are selling for much lower prices.

Buyers in both categories still evaluate a for-sale business on commonly accepted financial data and operating information. But today, they also consider any debt a seller has resulting from receipt of pandemic-related government funding programs such as the Paycheck Protection Program, EIDC, SBA Bridge Loans and the SBA Debt Relief program.

“If your business is among those that did not seek out this type of funding, the buy/sell process is pretty much business as usual. If you did receive this assistance, your banker, accountant, attorney and those representing the buyer will be evaluating processes and procedures that relate to pandemic debt,” notes Mark Dunsmoor, senior vice president of Legacy Bank. “In either instance, the seller must still present a clear picture of the business’s operations and financial condition.” In this article series we will focus on the steps to be taken by business sellers or buyers in reviewing and completing a sale.

In most instances, one of the seller’s first steps is to establish the value of the business. The formula for determining value is different for service businesses as compared to manufacturing/distribution companies. Because determining the value of a small business is complicated, sellers might want to consider consulting a professional business broker or accountant that specializes in valuation, rather than going it alone. That said, with a little internet research a seller can identify the commonly accepted formulas that might be used to determine a firm’s value.

However, as noted above, the impact of the pandemic may influence the firm’s attractiveness to the two buyer groups discussed above. For example, according to 3,000 firms surveyed by BizBuySell, 51% closed or suspended operations during the pandemic. Sixteen percent of owners plan to exit their businesses earlier and 20% plan to exit later due to the pandemic. Eighteen percent saw increased sales during the pandemic and among those who experienced reduced demand, 68% expected to return to pre-pandemic levels within a year.

“Conducting a valuation is an excellent opportunity to assess the financial health and potential of your business,” comments Dunsmoor. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. “Particularly if this is your first company, or if you run a family-owned and operated business, take care to approach valuation as objectively as possible to come to an accurate number,” adds Dunsmoor.

Mark Dunsmoor is a senior vice president of Legacy Bank with 40 years of banking expertise. Dunsmoor has been recognized as the Greater Pueblo Chamber of Commerce Charles W. Crews Business Leader of the Year and volunteers in many capacities including on the local hospital board.

Article Featured in the Pueblo Cheiftan: Link to Article