Exhibit 99.8
FELDMAN FINANCIAL ADVISORS, INC.
1001 CONNECTICUT AVENUE, NW • SUITE 840
WASHINGTON, DC 20036
202-467-6862 • (FAX) 202-467-6963
Fairmount Bank
Baltimore, Maryland
Conversion Valuation Appraisal Update
Valued as of March 16, 2010
Prepared By
Feldman Financial Advisors, Inc.
Washington, D.C.
FELDMAN FINANCIAL ADVISORS, INC.
1001 CONNECTICUT AVENUE, NW • SUITE 840
WASHINGTON, DC 20036
202-467-6862 • (FAX) 202-467-6963
March 16, 2010
Board of Directors
Fairmount Bank
8216 Philadelphia Road
Baltimore, Maryland 21237
Members of the Board:
Feldman Financial Advisors, Inc. (“Feldman Financial”) hereby provides an updated appraisal (“Appraisal”) of the estimated pro forma market value of Fairmount Bank (the “Bank”) in connection with the simultaneous conversion of the Bank from the mutual to stock form of organization, the issuance of the Bank’s capital stock to Fairmount Bancorp, Inc. (the “Company”), and the offering of shares of common stock of the Company for sale to certain depositors of the Bank, employee benefit plans of the Bank, and other members of the general public (collectively referred to herein as the “Conversion”). This Appraisal is furnished pursuant to the Bank’s regulatory filing of the amended Application for Conversion (“Form AC”) with the Office of Thrift Supervision (“OTS”).
In preparing this Appraisal, we conducted an analysis of the Bank that included discussions with its management. In addition, where appropriate, we considered information based upon other available public sources that we believe are reliable; however, we cannot guarantee the accuracy and completeness of such information. We also reviewed conditions in the securities markets in general and the market for thrift stocks in particular. Our Appraisal is based on representations by the Bank that information contained in the offering prospectus and information furnished to us by the Bank and its independent auditor are truthful, accurate, and complete. We did not independently verify the financial statements or any of the other information provided to us by the Bank or its independent auditor. Our previous Appraisal as of November 30, 2009 is incorporated and supplemented herein by reference.
Our Appraisal is not intended, and must not be construed to be a recommendation of any kind as to the advisability of purchasing shares of common stock in the Conversion. Moreover, because such valuations are necessarily based upon estimates and projections of a number of matters, all of which are subject to change from time to time, no assurance can be given that persons who purchase shares of stock in the Conversion will thereafter be able to sell such shares at prices related to our estimate of the Bank’s pro forma market value. Feldman Financial is not a seller of securities within the meaning of any federal or state securities laws and any report prepared by Feldman Financial shall not be used as an offer or solicitation with respect to the purchase or sale of any securities.
FELDMAN FINANCIAL ADVISORS, INC.
Board of Directors
Fairmount Bank
March 16, 2010
Page 2
Recent Financial Performance
Table 1 summarizes the Bank’s balance sheet data as of September 30, 2009 and December 31, 2009. Table 2 summarizes the Bank’s income statement data for the three months ended December 31, 2008 and 2009. Exhibits 1 through 3 present more comprehensive balance sheet and income statement data for the comparative operating periods.
Table 1
Selected Balance Sheet Data
As of September 30, 2009 and December 31, 2009
(Dollars in Thousands)
| Dec. 31, 2009 | Sept. 30, 2009 | |||||
Total assets | $ | 65,252 | $ | 64,041 | ||
Cash and cash equivalents | 2,031 | 4,633 | ||||
Investment securities | 7,987 | 5,695 | ||||
Loans receivable, net | 51,432 | 50,334 | ||||
Total deposits | 47,149 | 45,838 | ||||
Federal Home Loan Bank advances | 11,000 | 35,242 | ||||
Total equity | 6,897 | 6,790 | ||||
Source: Fairmount Bank
The Bank’s total assets increased by $1.2 million or 1.9% to $65.3 million at December 31, 2009 from $64.0 million at September 30, 2009. The increase was a result of an increase of $1.1 million in net loans and a $2.3 million increase in investment securities, funded by a decrease of $2.6 million in cash and cash equivalents (federal funds and interest-bearing deposits in other banks) and an increase in deposits of $1.3 million.
Total net loans increased from $50.3 million at September 30, 2009 to $51.4 million at December 31, 2009. This represented an increase of $1.1 million or 2.2%. The increase in the loan portfolio was primarily attributable to an increase of $940,000 or 4.2% in one- to four-family owner occupied real estate loans. At December 31, 2009, one- to four-family owner occupied real estate loans amounted to $23.1 million (44.8% of total gross loans), compared to $22.2 million (44.0% of total gross loans) at September 30, 2009.
FELDMAN FINANCIAL ADVISORS, INC.
Board of Directors
Fairmount Bank
March 16, 2010
Page 3
Table 2
Income Statement Summary
For the Three Months Ended December 31, 2008 and 2009
(Dollars in Thousands)
| Three Months Ended December 31, | ||||||
| 2009 | 2008 | |||||
Total interest income | $ | 913 | $ | 832 | ||
Total interest expense | 361 | 384 | ||||
Net interest income | 552 | 448 | ||||
Provision for loan losses | 30 | 6 | ||||
Net interest income after provision | 522 | 442 | ||||
Total non-interest income | 51 | 21 | ||||
Total non-interest expense | 385 | 265 | ||||
Income before taxes | 188 | 199 | ||||
Income tax expense | 73 | 71 | ||||
Net income | $ | 115 | $ | 128 | ||
Source: Fairmount Bank.
Total liabilities at December 31, 2009 were $58.4 million, an increase of $1.1 million or 1.9%, from $57.3 million at September 30, 2009. The increase was due primarily to an increase in deposits of $1.3 million or 2.9% from September 30, 2009 to December 31, 2009. Deposits increased from $45.8 million at September 30, 2009 to $47.1 million at December 31, 2009. The increase of $1.3 million in total deposits was primarily the result of an increase in certificates of deposit, which increased from $32.9 million at September 30, 2009 to $33.8 million at December 31, 2009. This represented an increase of $971,000 or 3.0% from September 30, 2009 to December 31, 2009.
Total equity was $6.9 million or 10.57% of total assets at December 31, 2009, compared to $6.8 million or 10.60% of total assets at September 30, 2009. The primary reason for the $107,000 increase in equity was $115,000 in net income reported during the three months ended December 31, 2009. The ratio of total equity to total assets declined marginally because the asset expansion of 1.9% surpassed the equity increase of 1.6%.
FELDMAN FINANCIAL ADVISORS, INC.
Board of Directors
Fairmount Bank
March 16, 2010
Page 4
The Bank’s net income decreased by 10.2% or $13,000 to $115,000 for the three months ended December 31, 2009 from net income of $128,000 for the three months ended December 31, 2008. The earnings decrease reflected higher non-interest expense of $120,000, offset in part by an increase of $105,000 in net interest income. The Bank’s annualized return on assets (“ROA”) declined from 0.90% in the December 2008 quarter to 0.71% for the December 2009 quarter. The Bank’s annualized return on equity (“ROE”) declined from 8.13% in the December 2008 quarter to 6.69% for the December 2009 quarter.
Net interest income increased by $103,000 or 23.0% to approximately $552,000 for the three months ended December 31, 2009 from $448,000 for the three months ended December 31, 2008. The increase primarily resulted from the combined effects of an increase of $81,000 in total interest income and a decrease of $22,000 in total interest expense. The increase in interest income was mainly the result of a $4.2 million increase in average balance of loans due to growth in the loan portfolio and an increase of $2.5 million in the average balance of federal funds sold and interest-bearing deposits in other banks. Interest expense decreased primarily as a result of the decrease in average rates paid on deposits and borrowings. The average rate paid decreased from 3.12% for the December 2008 quarter to 2.52% for the December 2009 quarter. The Bank’s net interest rate spread increased from 2.95% for the December 2008 quarter to 3.45% for the December 2009 quarter. The Bank’s net interest margin increased from 3.27% for the December 2008 quarter to 3.61% for the December 2009 quarter.
The Bank’s provision for loan losses increased $24,000 from $6,000 for the December 2008 quarter to $30,000 for December 2009 quarter due to increased loan volume and uncertainty regarding the housing market. The Bank’s ratio of non-performing assets to total assets increased from 0.11% at December 32, 2008 to 0.40% at December 31, 2009. The ratio of non-performing loans to total loans increased from 0.14% at December 31, 2008 to 0.32% at December 31, 2009. As a result of the increased provisions over the past four quarters, the ratio of allowance for loan losses to total loans increased from 0.23% to 0.49%.
Non-interest income was $51,000 for the December 2009 quarter, which was an increase of $30,000 from $21,000 for the December 2008 quarter. The increase was the result of higher service charges and fees which increased due to loan settlements during the comparable three-month periods. Non-interest expense increased by $120,000 or 45.2% from $265,000 for the December 2008 quarter to $385,000 for the December 2009 quarter. The ratio of non-interest expense to average assets increased from 1.87% to 2.36% over the corresponding periods. Salaries, fees and employment expenses increased by $64,000 or 38.8% from $165,000 for the December 2008 quarter to $229,000 for the December 2009 quarter primarily as a result of the Bank hiring a Chief Financial Officer and an assistant branch manager. Premises and equipment increased by $24,000 or 133.3% from $18,000 to $42,000 for the three months ended December 31, 2009. This increase was primarily the result of the new headquarters facility that was opened in September 2009.
FELDMAN FINANCIAL ADVISORS, INC.
Board of Directors
Fairmount Bank
March 16, 2010
Page 5
Comparative Group: Recent Financial Comparisons
Exhibits 4 through 7 summarize recent financial comparisons of the Bank with the Comparative Group for the last twelve months (“LTM”) ended December 31, 2009. Similar to the peer group analysis conducted in our original Appraisal, the Bank continues to be characterized by higher profitability. However, the earnings advantage held by the Bank declined slightly. The Bank’s ROA measured 0.69% for the LTM period ended December 31, 2009, as compared to 0.74% for the LTM period ended September 30, 2009. The Comparative Group’s average ROA increased marginally from 0.36% for the LTM period ended September 30, 2009 to 0.37% for the LTM period ended December 31, 2009. For the LTM period ended December 31, 2006, the Bank’s core ROA of 0.69% surpassed the Comparative Group’s average of 0.45%.
The Bank’s superior ROA continues to be supported by a solid net interest margin, comparatively low operating expense ratio, and favorable efficiency ratio. Through the recent LTM period, the combination of a decreased ratio of net interest income to average assets and increased operating expense ratio had the effect of narrowing the Bank’s earnings advantage relative to the Comparative Group. The Bank’s net interest margin was 3.46% and its non-interest expense ratio was 2.18% of average assets for the LTM period ending December 31, 2009. In contrast, the Comparative Group’s average and median net interest margins were 3.41% and 3.37%, respectively, and the Comparative Group average and median non-interest expense ratios were 2.94% and 2.89%, respectively.
The Bank continued to display a lower concentration of liquidity on its balance sheet as evidenced by its 15.3% level of cash and securities versus the Comparative Group’s average and median levels of 20.0% and 18.5%, respectively. The Bank maintained favorable asset quality as reflected by its 0.40% ratio of non-performing assets to total assets versus the 1.89% average and 1.40% median for the Comparative Group. The Bank’s 10.57% ratio of tangible equity to assets was comparable to the 11.40% average and 9.69% median of the Comparative Group.
Comparative Group: Recent Stock Price Performance
Since our initial Appraisal as of November 30, 2009, market prices of thrift stocks generally moved in contrasting directions with larger capitalized issues advancing forward and smaller capitalized issues sliding downward. Exhibit 8 summarizes the net change of the Comparative Group’s stock prices and selected market indexes between November 30, 2009 and March 16, 2010. The SNL Thrift < $250 Million Assets index has declined 1.2% since November 30, 2009, and the SNL All OTCBB/Pink index was down 3.1%. In comparison, the SNL All Public Thrift index which is market weighted and therefore influenced by larger capitalization issues, was up 13.2% and the broader S&P 500 Stock index advanced 5.8%.
FELDMAN FINANCIAL ADVISORS, INC.
Board of Directors
Fairmount Bank
March 16, 2010
Page 6
Among the Comparative Group, five of the companies experienced a net price decrease between November 30, 2009 and March 16, 2010 and five reported a net price increase. The Comparative Group posted a median price change of 0.2% over the fifteen-week period. The median price-to-book (“P/B”) and price-to-tangible book (“P/TB”) ratios for the Comparative Group were 63.9% and 64.4%, respectively, as of March 16, 2010. The median price-to-earnings (“P/E”) and price-to-core earnings ratios for the Comparative Group were 15.3x and 15.7x, respectively, as of March 16, 2010.
Recent Thrift Conversion Activity
Exhibit 9 provides a summary of standard conversion stock offerings completed from January 1, 2008 to March 16, 2010 year-to-date. As shown in Exhibit 9, the median pro forma price-to-book and price-to-tangible book ratios were 59.4% for these eleven conversion offerings. The median price-to-book and price-to-tangible book ratios were 46.3% for the three OTCBB-listed conversion offerings. Since our original Appraisal, four standard conversion offerings were completed with all of them concluding in the month of January 2010.
Athens Bancshares Corp. (Athens, Tennessee) completed its conversion offering on January 7, 2010 at a pro forma price-to-book ratio of 58.0%, and its stock price advanced 16.0% to $11.60 at the end of first day of trading from the initial public offering (“IPO”) price of $10.00. Athens Bancshares raised gross proceeds of $26.8 million and had total assets of $246.0 million and a pre-conversion equity-to-assets ratio of 10.50%. The stock offering was oversubscribed with approximate orders of $34 million and closed at the adjusted maximum of the offering range. As of March 16, 2010, Athens Bancshares closed at a market price of $10.75, or up 7.5% from its IPO price.
Versailles Financial Corp. (Versailles, Ohio) accomplished its conversion offering on January 11, 2010 by raising gross proceeds of $4.3 million at a pro forma price-to-book ratio of 40.5%. Its stock price has remained unchanged from the IPO price of $10.00 since no trades have been reported. The stock is listed on the OTCBB. Versailles Financial had total assets of $41.6 million and a pre-conversion equity-to-assets ratio of 17.89%. The stock offering was not oversubscribed and closed slightly above the minimum of the offering range.
OmniAmerican Bancorp, Inc. (Fort Worth, Texas) completed its stock conversion offering on January 21, 2010 by raising gross proceeds of $119.0 million at a pro forma price-to-book ratio of 62.0%. The stock advanced 18.5% in the first day of trading to close at $11.85. OmniAmerican Bancorp had total assets of $1.0 billion and a pre-conversion equity-to-assets ratio of 9.08%. The stock offering was oversubscribed and closed at the adjusted maximum of the offering range. As of March 16, 2010, OmniAmerican Bancorp closed at a market price of $11.85, or up 18.5% from its IPO price of $10.00.
FELDMAN FINANCIAL ADVISORS, INC.
Board of Directors
Fairmount Bank
March 16, 2010
Page 7
OBA Financial Services, Inc. (Germantown, Maryland) completed its stock conversion offering on January 22, 2010 by raising gross proceeds of $46.3 million at a pro forma price-to-book ratio of 59.4%. The stock advanced 3.9% in the first day of trading to close at $10.39. OBA Financial had total assets of $357.9 million and a pre-conversion equity-to-assets ratio of 10.90%. The stock offering was oversubscribed with approximate orders of $112 million and closed at the adjusted maximum of the offering range. As of March 16, 2010, OBA Financial closed at a market price of $10.46, or up 4.6% from its IPO price of $10.00.
Valuation Review and Analysis
Since our original Appraisal, there have been no material changes in the Bank’s financial condition or operating performance. The Bank’s reported LTM earnings declined slightly by 2.7% from $443,000 for the LTM ended September 30, 2009 to $433,000 for the LTM ended December 31, 2009. On a quarterly basis, the Bank’s earnings declined 10.2% from $128,000 for the three months ended December 31, 2008 to $115 for the three months ended December 31, 2009. Increased operating expenses associated with its new headquarters office and additional personnel costs are the primary causes of the Bank’s earnings decrease. The full year’s impact of higher operating expense is expected to restrain the Bank’s earnings growth over the near term. The Bank’s total equity increased by 1.6% from $6.8 million at September 30, 2009 to $6.9 million at December 31, 2009. Concurrently, the overall financial results and trading valuation ratios of the Comparative Group did not change materially.
Exhibit 10 compares the pro forma valuation ratios of Bank, based on the assumptions and pro forma calculations in Exhibits 11 through 13, to the trading market valuation ratios of the Comparative Group. The average price-to-book ratio of the Comparative Group was 65.8% at March 16, 2010, as compared to 67.1% at November 30, 2009. The average price-to-tangible book ratio of the Comparative Group was 66.2% at March 16, 2010, as compared to 67.8% at November 30, 2009. Based on the Bank’s recent earnings results, current financial condition, and the relatively unchanged trading levels of the Comparative Group, we believe that no change in the Bank’s estimated pro forma market value is warranted at this time.
At the current midpoint of $5.0 million, the Bank is valued at a pro forma P/B ratio of 47.2%. The minimum P/B ratio is 42.8% and extends to a maximum of 51.1% and an adjusted maximum of 55.0%, which reflects a 16.4% discount to the Comparative Group’s average of 65.8% and a 13.9% discount to the Comparative Group’s median of 63.9%. The Bank’s minimum P/TB ratio is 42.8% and also extends to a maximum of 51.1% and adjusted maximum of 55.0%, which reflects a 16.9% discount to the Comparative Group’s average of 66.2% and a 14.6% discount to the Comparative Group’s median of 63.9%.
FELDMAN FINANCIAL ADVISORS, INC.
Board of Directors
Fairmount Bank
March 16, 2010
Page 8
The Bank’s solid profitability produces lesser discounts on a price-to-earnings basis. Based on LTM earnings, the Bank’s pro forma price-to-earnings and price-to-core earnings ratios are 10.1x at the minimum, 12.0x at the midpoint, 14.1x at the maximum, and 16.7x at the adjusted maximum. The Bank’s adjusted maximum P/E of 16.7x reflects a 1.8% discount to the Comparative Group’s average P/E of 17.0x. The Bank’s adjusted maximum core P/E of 16.7x reflects an 8.7% discount to the Comparative Group’s average P/E of 18.3x.
The Bank’s pro forma equity-to-assets ratio ranges from 14.55% at the minimum value to 17.08% at the adjusted maximum value and surpasses the Comparative Group’s average equity level of 11.45% and the All Public Thrift average equity level of 11.10%. The Bank’s strong pro forma equity-to-assets ratios contribute to its price-to-assets ratios exceeding the Comparative Group at the maximum and adjusted maximum levels of the pro forma valuation range.
Valuation Conclusion
It is our opinion that, as of March 16, 2010, the estimated aggregate pro forma market value of Fairmount Bank was within a range of $4,250,000 to $5,750,000 with a midpoint of $5,000,000. The valuation range was based upon a 15% decrease from the midpoint to determine the minimum and a 15% increase from the midpoint to establish the maximum. Assuming an additional 15% increase above the maximum value would result in an adjusted maximum of $6,612,500. This valuation range is unchanged from the valuation range that was established in our original Appraisal as of November 30, 2009. Thus, assuming an offering price of $10.00 per share of common stock, the Company will offer a minimum of 425,000 shares, a midpoint of 500,000 shares, a maximum of 575,000 shares, and an adjusted maximum of 661,250 shares.
Sincerely,
FELDMAN FINANCIAL ADVISORS, INC. | ||
| By: | Trent R. Feldman | |
| President | ||
| By: | Peter W. L. Williams | |
| Principal | ||
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 1
Balance Sheets
As of September 30, 2008 and 2009 and December 31, 2009
(Dollars in Thousands)
| Dec. 31, 2009 | September 30, | |||||||||
| 2009 | 2008 | |||||||||
ASSETS | ||||||||||
Cash and due from banks | $ | 280 | $ | 328 | $ | 367 | ||||
Interest-bearing deposits in other banks | 53 | 93 | 154 | |||||||
Federal funds sold | 1,699 | 4,213 | 891 | |||||||
Securities available for sale, at fair value | 5,120 | 3,328 | 7,019 | |||||||
Securities held to maturity, at amortized cost | 2,266 | 1,766 | — | |||||||
Federal Home Loan Bank stock | 601 | 601 | 539 | |||||||
Loans receivable, net | 51,432 | 50,334 | 45,155 | |||||||
Accrued interest receivable | 247 | 234 | 230 | |||||||
Premises and equipment, net | 2,993 | 2,889 | 1,048 | |||||||
Foreclosed real estate | 95 | 95 | — | |||||||
Other assets | 468 | 161 | 109 | |||||||
TOTAL ASSETS | $ | 65,252 | $ | 64,041 | $ | 55,512 | ||||
LIABILITIES AND EQUITY | ||||||||||
Deposits: | ||||||||||
Non-interest-bearing | $ | 630 | $ | 447 | $ | 490 | ||||
Interest-bearing demand deposits | 3,504 | 3,376 | 2,626 | |||||||
Savings deposits | 9,194 | 9,165 | 9,189 | |||||||
Time certificates | 33,821 | 32,850 | 26,586 | |||||||
Total deposits | 47,149 | 45,838 | 38,891 | |||||||
Federal Home Loan Bank advances | 11,000 | 11,000 | 10,000 | |||||||
Other liabilities | 206 | 413 | 429 | |||||||
Total liabilities | 58,355 | 57,251 | 49,320 | |||||||
Retained earnings | 6,842 | 6,727 | 6,282 | |||||||
Accumulated other comprehensive income (loss) | 55 | 63 | (90 | ) | ||||||
Total equity | 6,897 | 6,790 | 6,192 | |||||||
TOTAL LIABILITIES AND EQUITY | $ | 65,252 | $ | 64,041 | $ | 55,512 | ||||
Source: Fairmount Bank, financial statements.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 2
Income Statements
For the Three Months Ended December 31, 2008 and 2009
(Dollars in Thousands)
| Three Months Ended December 31, | ||||||
| 2009 | 2008 | |||||
Total interest income | $ | 913 | $ | 832 | ||
Total interest expense | 361 | 384 | ||||
Net interest income | 552 | 448 | ||||
Provision for loan losses | 30 | 6 | ||||
Net interest income after provision | 522 | 442 | ||||
Service charges and fees | 47 | 19 | ||||
Gain on sale of securities | 1 | 1 | ||||
Other income | 3 | 1 | ||||
Total non-interest income | 51 | 21 | ||||
Salaries, fees and employment expenses | 229 | 165 | ||||
Occupancy and equipment expense | 42 | 18 | ||||
Professional fees | 20 | 26 | ||||
Other operating expenses | 94 | 56 | ||||
Total non-interest expense | 385 | 265 | ||||
Income before income tax expense | 188 | 199 | ||||
Income tax expense | 73 | 71 | ||||
Net income | $ | 115 | $ | 128 | ||
Source: Fairmount Bank, financial statements.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 3
Income Statements
For the Years Ended September 30, 2007 to 2009
(Dollars in Thousands)
| Year Ended September 30, | |||||||||
| 2009 | 2008 | 2007 | |||||||
Total interest income | $ | 3,437 | $ | 2,950 | $ | 2,417 | |||
Total interest expense | 1,458 | 1,619 | 1,354 | ||||||
Net interest income | 1,979 | 1,331 | 1,063 | ||||||
Provision for loan losses | 182 | 50 | 35 | ||||||
Net interest income after provision | 1,797 | 1,281 | 1,028 | ||||||
Service charges and fees | 147 | 122 | 32 | ||||||
Gain on sale of securities | 1 | 22 | — | ||||||
Other income | 10 | 7 | — | ||||||
Total non-interest income | 157 | 151 | 32 | ||||||
Salaries, fees and employment expenses | 739 | 650 | 423 | ||||||
Occupancy and equipment expense | 72 | 70 | 50 | ||||||
Professional fees | 105 | 90 | 84 | ||||||
Other operating expenses | 325 | 227 | 298 | ||||||
Total non-interest expense | 1,241 | 1,037 | 810 | ||||||
Income before income tax expense | 714 | 395 | 250 | ||||||
Income tax expense | 269 | 149 | 89 | ||||||
Net income | $ | 445 | $ | 246 | $ | 161 | |||
Source: Fairmount Bank, financial statements.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 4
General Financial Performance Ratios
As of or For the Last Twelve Months Ended December 31, 2009
| Total Assets ($000s) | Total Deposits ($000s) | Total Equity/ Assets (%) | Tang. Equity/ Assets (%) | Net Interest Margin (%) | Effcy. Ratio (%) | LTM ROA (%) | LTM ROE (%) | Core ROA (%) | Core ROE (%) | |||||||||||||
Fairmount Bank | 65,252 | 47,149 | 10.57 | 10.57 | 3.46 | 59.96 | 0.69 | 6.45 | 0.69 | 6.45 | ||||||||||||
Comparative Group Average | 374,541 | 284,122 | 11.45 | 11.40 | 3.41 | 74.06 | 0.37 | 3.48 | 0.45 | 4.22 | ||||||||||||
Comparative Group Median | 357,637 | 247,253 | 9.70 | 9.69 | 3.37 | 73.82 | 0.41 | 4.45 | 0.44 | 4.77 | ||||||||||||
Comparative Group | ||||||||||||||||||||||
BCSB Bancorp, Inc. | 585,740 | 503,210 | 10.26 | 10.25 | 3.26 | 83.81 | (0.26 | ) | (2.56 | ) | 0.30 | 2.89 | ||||||||||
Community Financial Corporation | 540,934 | 402,133 | 8.97 | 8.97 | 3.72 | 62.23 | 0.40 | 4.52 | 0.43 | 4.86 | ||||||||||||
FFD Financial Corporation | 197,654 | 163,952 | 9.06 | 9.06 | 3.27 | 75.35 | 0.41 | 4.38 | 0.44 | 4.68 | ||||||||||||
First Advantage Bancorp | 344,224 | 216,240 | 20.49 | 20.49 | 3.37 | 80.76 | 0.10 | 0.51 | 0.34 | 1.68 | ||||||||||||
GS Financial Corp. | 271,604 | 201,493 | 10.32 | 10.32 | 3.26 | 81.21 | 0.34 | 3.14 | 0.34 | 3.12 | ||||||||||||
LSB Financial Corp. | 371,050 | 277,866 | 9.13 | 9.13 | 2.90 | 72.28 | 0.12 | 1.35 | 0.15 | 1.67 | ||||||||||||
Mayflower Bancorp, Inc. (1) | 246,004 | 215,841 | 8.28 | 8.27 | 3.37 | 81.88 | 0.47 | 5.85 | 0.45 | 5.69 | ||||||||||||
North Central Bancshares, Inc. | 455,011 | 334,813 | 10.61 | 10.61 | 3.37 | 66.19 | 0.69 | 6.79 | 0.67 | 6.61 | ||||||||||||
Rome Bancorp, Inc. | 329,922 | 216,639 | 18.30 | 18.30 | 4.21 | 68.04 | 0.92 | 5.27 | 0.93 | 5.34 | ||||||||||||
Wayne Savings Bancshares, Inc. | 403,263 | 309,034 | 9.08 | 8.60 | 3.41 | 68.86 | 0.49 | 5.52 | 0.50 | 5.71 |
| (1) | As of or for the LTM period ended January 31, 2010. |
Source: Fairmount Bank; SNL Financial; Feldman Financial.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 5
Income and Expense Analysis
For the Last Twelve Months Ended September 30, 2009
| As a Percent of Average Assets | |||||||||||||||||||||
| Interest Income | Interest Expense | Net Interest Income | Other Oper. Income | Gains & Non-rec. Income | Loan Loss Prov. | Gen. & Admin. Expense | Amort. of Intang, | Non-rec. Expense | Pretax Core Earnings | ||||||||||||
Fairmount Bank | 5.65 | 2.51 | 3.14 | 0.30 | 0.00 | 0.33 | 2.18 | 0.00 | 0.00 | 0.93 | |||||||||||
Comparative Group Average | 5.17 | 1.95 | 3.22 | 0.75 | (0.02 | ) | 0.38 | 2.94 | 0.00 | 0.08 | 0.64 | ||||||||||
Comparative Group Median | 5.21 | 1.97 | 3.16 | 0.70 | 0.01 | 0.26 | 2.89 | 0.00 | 0.05 | 0.61 | |||||||||||
Comparative Group | |||||||||||||||||||||
BCSB Bancorp, Inc. | 5.10 | 2.09 | 3.01 | 0.42 | (0.09 | ) | 0.26 | 2.87 | 0.01 | 0.44 | 0.29 | ||||||||||
Community Financial Corporation | 5.28 | 1.71 | 3.57 | 0.72 | 0.00 | 0.94 | 2.67 | 0.00 | 0.05 | 0.68 | |||||||||||
FFD Financial Corporation | 5.35 | 2.13 | 3.21 | 0.41 | 0.00 | 0.21 | 2.74 | 0.00 | 0.04 | 0.67 | |||||||||||
First Advantage Bancorp | 5.01 | 1.85 | 3.16 | 0.80 | (0.32 | ) | 0.25 | 3.20 | 0.00 | 0.05 | 0.51 | ||||||||||
GS Financial Corp. | 5.45 | 2.34 | 3.11 | 0.47 | 0.05 | 0.19 | 2.90 | 0.00 | 0.05 | 0.49 | |||||||||||
LSB Financial Corp. | 5.26 | 2.50 | 2.76 | 1.06 | 0.00 | 0.86 | 2.81 | 0.00 | 0.05 | 0.15 | |||||||||||
Mayflower Bancorp, Inc. (1) | 4.66 | 1.58 | 3.07 | 0.67 | 0.06 | 0.03 | 3.10 | 0.01 | 0.05 | 0.60 | |||||||||||
North Central Bancshares, Inc. | 5.39 | 2.24 | 3.15 | 1.73 | 0.07 | 0.53 | 3.36 | 0.00 | 0.05 | 0.99 | |||||||||||
Rome Bancorp, Inc. | 5.15 | 1.27 | 3.89 | 0.73 | 0.02 | 0.09 | 3.14 | 0.00 | 0.04 | 1.39 | |||||||||||
Wayne Savings Bancshares, Inc. | 5.06 | 1.80 | 3.26 | 0.48 | 0.02 | 0.46 | 2.64 | 0.02 | 0.05 | 0.62 | |||||||||||
| (1) | For the LTM period ended January 31, 2010. |
Source: Fairmount Bank; SNL Financial; Feldman Financial.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 6
Balance Sheet Composition
As of December 31, 2009
| As a Percent of Total Assets | ||||||||||||||||||||
| Cash & Securities | Total Loans | Real Estate | Intang. Assets | Other Assets | Total Deposits | Borrowed Funds | Other Liabs. | Total Liabs. | Total Equity | |||||||||||
Fairmount Bank | 15.35 | 78.82 | 0.15 | 0.00 | 5.68 | 72.26 | 16.86 | 0.32 | 89.43 | 10.57 | ||||||||||
Comparative Group Average | 20.03 | 74.36 | 0.35 | 0.05 | 5.21 | 75.87 | 11.81 | 0.87 | 88.55 | 11.45 | ||||||||||
Comparative Group Median | 18.50 | 75.49 | 0.29 | 0.00 | 5.30 | 74.61 | 14.56 | 0.83 | 90.30 | 9.70 | ||||||||||
All Public Thrift Average | 23.90 | 69.79 | 0.54 | 0.87 | 4.75 | 69.79 | 18.16 | 1.17 | 89.09 | 10.90 | ||||||||||
All Public Thrift Median | 20.72 | 72.17 | 0.25 | 0.04 | 4.46 | 71.52 | 15.95 | 0.96 | 90.19 | 10.00 | ||||||||||
Comparative Group | ||||||||||||||||||||
BCSB Bancorp, Inc. | 25.87 | 67.85 | 0.00 | 0.02 | 6.26 | 85.91 | 2.90 | 0.92 | 89.74 | 10.26 | ||||||||||
Community Financial Corporation | 2.45 | 91.81 | 0.47 | 0.00 | 5.27 | 74.34 | 16.15 | 0.54 | 91.03 | 8.97 | ||||||||||
FFD Financial Corporation | 11.14 | 85.77 | 0.08 | 0.00 | 3.01 | 82.95 | 7.07 | 0.92 | 90.94 | 9.06 | ||||||||||
First Advantage Bancorp | 33.00 | 62.00 | 0.09 | 0.00 | 4.92 | 62.82 | 15.94 | 0.75 | 79.51 | 20.49 | ||||||||||
GS Financial Corp. | 26.71 | 68.30 | 1.07 | 0.00 | 3.92 | 74.19 | 14.92 | 0.58 | 89.68 | 10.32 | ||||||||||
LSB Financial Corp. | 7.61 | 86.56 | 0.51 | 0.00 | 5.32 | 74.89 | 15.36 | 0.62 | 90.87 | 9.13 | ||||||||||
Mayflower Bancorp, Inc. (1) | 43.40 | 49.90 | 0.68 | 0.00 | 6.02 | 87.74 | 3.46 | 0.53 | 91.72 | 8.28 | ||||||||||
North Central Bancshares, Inc. | 10.74 | 82.68 | 0.38 | 0.00 | 6.21 | 73.58 | 14.62 | 1.19 | 89.39 | 10.61 | ||||||||||
Rome Bancorp, Inc. | 6.74 | 86.57 | 0.00 | 0.00 | 6.68 | 65.66 | 14.51 | 1.53 | 81.70 | 18.30 | ||||||||||
Wayne Savings Bancshares, Inc. | 32.62 | 62.14 | 0.19 | 0.53 | 4.52 | 76.63 | 13.21 | 1.07 | 90.92 | 9.08 | ||||||||||
| (1) | For the LTM period ended January 31, 2010. |
Source: Fairmount Bank; SNL Financial; Feldman Financial.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 7
Regulatory Capital, Credit Risk, and Loan Composition
As of or For the Last Twelve Months Ended December 31, 2009
| Tier 1 Leverage Capital Ratio | Tier 1 Risk- based Capital | Total Risk- based Capital | NPLs/ Loans | Total NPAs/ Assets | Resrvs./ NPAs | Resrvs./ Loans | Resid. First Mtgs./ Loans | Other Real Est. Mtgs./ Loans | Non-mtg. Loans/ Loans | |||||||||||
Fairmount Bank | 10.50 | 18.44 | 18.98 | 0.32 | 0.40 | 96.56 | 0.49 | 78.20 | 12.80 | 9.00 | ||||||||||
Comparative Group Average | 10.28 | 14.94 | 15.89 | 2.06 | 1.89 | 62.83 | 1.20 | 42.49 | 42.02 | 15.48 | ||||||||||
Comparative Group Median | 9.43 | 14.21 | 15.30 | 1.84 | 1.40 | 46.59 | 1.17 | 43.36 | 43.85 | 17.83 | ||||||||||
Comparative Group | ||||||||||||||||||||
BCSB Bancorp, Inc. | 11.40 | 17.53 | 18.39 | 1.74 | 1.20 | 60.27 | 1.05 | 47.05 | 41.33 | 11.62 | ||||||||||
Community Financial Corporation | 8.61 | 10.03 | 10.93 | 2.60 | 2.89 | 45.47 | 1.41 | 28.05 | 47.82 | 24.13 | ||||||||||
FFD Financial Corporation | 9.00 | 11.40 | 12.20 | 1.59 | 1.38 | 47.71 | 1.05 | 37.76 | 46.37 | 15.87 | ||||||||||
First Advantage Bancorp | 13.08 | 18.96 | 19.87 | 0.65 | 0.50 | 165.08 | 1.30 | 20.84 | 58.58 | 20.58 | ||||||||||
GS Financial Corp. | 9.79 | 16.13 | 17.11 | 2.23 | 2.45 | 27.10 | 1.28 | 48.55 | 47.76 | 3.69 | ||||||||||
LSB Financial Corp. | 9.07 | 11.62 | 12.87 | 3.86 | 3.89 | 25.87 | 1.15 | 39.57 | 54.84 | 5.59 | ||||||||||
Mayflower Bancorp, Inc. | 7.76 | 14.81 | 15.81 | 1.63 | 1.08 | 45.22 | 0.97 | 61.04 | 31.73 | 7.13 | ||||||||||
North Central Bancshares, Inc. | 9.78 | 13.60 | 14.79 | 3.74 | 3.54 | 44.54 | 1.87 | 39.67 | 40.55 | 19.78 | ||||||||||
Rome Bancorp, Inc. | 16.27 | 22.29 | 23.04 | 0.65 | 0.57 | 113.89 | 0.74 | 54.06 | 19.78 | 26.16 | ||||||||||
Wayne Savings Bancshares, Inc. | 8.00 | 13.04 | 13.90 | 1.94 | 1.41 | 53.18 | 1.19 | 48.33 | 31.45 | 20.22 |
Source: Fairmount Bank; SNL Financial; Feldman Financial.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 8
Comparative Group Market Price and Selected Index Change
Market Price Data as of November 30, 2009 and March 16, 2010
Company | 11/30/09 Closing Price ($) | 3/16/10 Closing Price ($) | Change (%) | ||||||
Comparative Group Median | NA | NA | 0.2 | ||||||
Comparative Group Average | NA | NA | 4.3 | ||||||
Comparative Group | |||||||||
BCSB Bancorp, Inc. | $ | 9.00 | $ | 9.50 | 5.6 | ||||
Community Financial Corporation | 4.15 | 4.10 | (1.2 | ) | |||||
FFD Financial Corporation | 14.80 | 12.52 | (15.4 | ) | |||||
First Advantage Bancorp | 10.50 | 10.41 | (0.9 | ) | |||||
GS Financial Corp. | 15.80 | 13.99 | (11.5 | ) | |||||
LSB Financial Corp. | 10.25 | 10.00 | (2.4 | ) | |||||
Mayflower Bancorp, Inc. | 6.60 | 8.00 | 21.2 | ||||||
North Central Bancshares, Inc. | 15.30 | 15.50 | 1.3 | ||||||
Rome Bancorp, Inc. | 8.39 | 9.09 | 8.4 | ||||||
Wayne Savings Bancshares, Inc. | 5.74 | 7.93 | 38.2 | ||||||
Index Values | |||||||||
SNL Thrift < $250M Assets | 847.7 | 837.8 | (1.2 | ) | |||||
SNL All OTCBB/Pink Thrift | 150.0 | 145.4 | (3.1 | ) | |||||
SNL All Public Thrift Index | 553.8 | 626.7 | 13.2 | ||||||
S&P 500 Stock Index | 1,095.6 | 1,159.5 | 5.8 | ||||||
Source: SNL Financial; Feldman Financial.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 9
Summary of Recent Standard Conversion Offerings
Transactions Completed Since January 1, 2008 to March 16, 2010
Company | State | Stock Exchange | Conv. Date | Total Assets ($Mil.) | Gross Offering Proceeds ($Mil.) | Pro Forma Ratios | IPO Price ($) | 3/16/10 Closing Price ($) | After-Market Trading Price Change | Change Thru 3/16/10 (%) | ||||||||||||||||||||||
| Price/ Book Value (%) | Price/ Tang. Book (%) | Price/ LTM EPS (x) | One Day (%) | One Week (%) | One Month (%) | |||||||||||||||||||||||||||
Average: 2008-2010 YTD | 506.1 | 63.4 | 59.3 | 62.4 | 27.4 | NA | NA | 9.1 | 7.3 | 6.6 | 22.3 | |||||||||||||||||||||
Median: 2008-2010 YTD | 357.9 | 46.3 | 59.4 | 59.4 | 24.3 | NA | NA | 0.5 | 1.5 | 3.0 | 11.0 | |||||||||||||||||||||
Average: 2010 YTD | 412.9 | 49.1 | 55.0 | 55.2 | 24.9 | NA | NA | 9.6 | 7.6 | 5.9 | 7.7 | |||||||||||||||||||||
Median: 2010 YTD | 301.9 | 36.5 | 58.7 | 59.1 | 24.9 | NA | NA | 10.0 | 7.8 | 6.5 | 6.1 | |||||||||||||||||||||
Average: OTCBB 2008-2010 YTD | 37.1 | 6.4 | 45.0 | 45.0 | 36.0 | NA | NA | 0.0 | 1.7 | 1.7 | 13.3 | |||||||||||||||||||||
Median: OTCBB 2008-2010 YTD | 41.6 | 4.3 | 46.3 | 46.3 | 36.0 | NA | NA | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||||||
Standard Offerings | ||||||||||||||||||||||||||||||||
OBA Financial Services, Inc. | MD | NASDAQ | 01/22/10 | 357.9 | 46.3 | 59.4 | 59.4 | NM | 10.00 | 10.46 | 3.9 | 1.5 | 3.0 | 4.6 | ||||||||||||||||||
OmniAmerican Bancorp, Inc. | TX | NASDAQ | 01/21/10 | 1,006.3 | 119.0 | 62.0 | 62.0 | NM | 10.00 | 11.85 | 18.5 | 14.0 | 9.9 | 18.5 | ||||||||||||||||||
Versailles Financial Corp.(1) | OH | OTCBB | 01/11/10 | 41.6 | 4.3 | 40.5 | 40.5 | 36.0 | 10.00 | 10.00 | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||||||||
Athens Bancshares Corp. | TN | NASDAQ | 01/07/10 | 246.0 | 26.8 | 58.0 | 58.8 | 13.9 | 10.00 | 10.75 | 16.0 | 15.0 | 10.6 | 7.5 | ||||||||||||||||||
Territorial Bancorp Inc. | HI | NASDAQ | 07/13/09 | 1,223.8 | 122.3 | 60.1 | 60.2 | 15.9 | 10.00 | 20.10 | 49.9 | 47.2 | 48.0 | 101.0 | ||||||||||||||||||
St. Joseph Bancorp, Inc.(1) | MO | OTCBB | 02/02/09 | 19.4 | 3.8 | 46.3 | 46.3 | NM | 10.00 | 10.00 | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||||||||
Hibernia Homestead Bancorp | LA | OTCBB | 01/28/09 | 50.2 | 11.1 | 48.1 | 48.1 | NM | 10.00 | 14.00 | 0.0 | 5.0 | 5.0 | 40.0 | ||||||||||||||||||
First Savings Fin’l Group, Inc. | IN | NASDAQ | 10/07/08 | 215.4 | 24.3 | 51.1 | 51.1 | NM | 10.00 | 11.10 | (1.0 | ) | (4.0 | ) | (8.0 | ) | 11.0 | |||||||||||||||
Home Bancorp, Inc. | LA | NASDAQ | 10/03/08 | 448.1 | 89.3 | 69.7 | 69.7 | 19.2 | 10.00 | 13.98 | 14.9 | 3.5 | 3.1 | 39.8 | ||||||||||||||||||
Cape Bancorp, Inc.(2) | NJ | NASDAQ | 02/01/08 | 633.8 | 78.2 | 73.2 | 105.8 | 50.0 | 10.00 | 7.40 | 0.5 | 0.1 | (2.0 | ) | (26.0 | ) | ||||||||||||||||
Danvers Bancorp, Inc. | MA | NASDAQ | 01/10/08 | 1,324.1 | 171.9 | 83.7 | 83.9 | 29.4 | 10.00 | 14.90 | (2.6 | ) | (2.2 | ) | 2.6 | 49.0 | ||||||||||||||||
| (1) | There have been no reported trades in this issue of stock. |
| (2) | Conversion stock offering was completed in conjunction with a simultaneous acquisition. |
Source: SNL Financial.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 10
Comparative Pro Forma Market Valuation Analysis
Fairmount Bank and the Comparative Group
Computed from Market Price Data as of March 16, 2010
Company | Current Stock Price ($) | Total Market Value ($Mil.) | Price/ LTM EPS (x) | Price/ Core EPS (x) | Price/ Book Value (%) | Price/ Tang. Book (%) | Price/ Total Assets (%) | Total Equity/ Assets (%) | Tang. Equity/ Assets (%) | Current Dividend Yield (%) | ||||||||||
Fairmount Bank(1) | ||||||||||||||||||||
Pro Forma Minimum | 10.00 | 4.3 | 10.1 | 10.1 | 42.8 | 42.8 | 6.22 | 14.55 | 14.55 | 0.00 | ||||||||||
Pro Forma Midpoint | 10.00 | 5.0 | 12.0 | 12.0 | 47.2 | 47.2 | 7.25 | 15.37 | 15.37 | 0.00 | ||||||||||
Pro Forma Maximum | 10.00 | 5.8 | 14.1 | 14.1 | 51.1 | 51.1 | 8.26 | 16.17 | 16.17 | 0.00 | ||||||||||
Pro Forma Adj. Maximum | 10.00 | 6.6 | 16.7 | 16.7 | 55.0 | 55.0 | 9.40 | 17.08 | 17.08 | 0.00 | ||||||||||
Comparative Group Average | NA | 26.3 | 17.0 | 18.3 | 65.8 | 66.2 | 7.50 | 11.45 | 11.40 | 2.50 | ||||||||||
Comparative Group Median | NA | 19.4 | 15.3 | 15.7 | 63.9 | 64.4 | 6.16 | 9.70 | 9.69 | 2.69 | ||||||||||
All Public Thrift Average(2) | NA | 386.4 | 20.3 | 20.1 | 74.2 | 83.1 | 8.17 | 11.10 | 10.33 | 2.08 | ||||||||||
All Public Thrift Median(2) | NA | 53.8 | 17.0 | 16.1 | 73.4 | 76.8 | 6.53 | 9.81 | 9.11 | 2.09 | ||||||||||
Comparative Group | ||||||||||||||||||||
BCSB Bancorp, Inc. | 9.50 | 29.6 | NM | 16.1 | 59.6 | 59.7 | 5.06 | 10.26 | 10.25 | 0.00 | ||||||||||
Community Financial Corporation | 4.10 | 17.9 | 13.2 | 11.7 | 49.2 | 49.2 | 3.31 | 8.97 | 8.97 | 0.00 | ||||||||||
FFD Financial Corporation | 12.52 | 12.7 | 16.3 | 15.3 | 70.7 | 70.7 | 6.41 | 9.06 | 9.06 | 5.43 | ||||||||||
First Advantage Bancorp | 10.41 | 46.5 | NM | 39.8 | 66.0 | 66.0 | 13.52 | 20.49 | 20.49 | 1.92 | ||||||||||
GS Financial Corp. | 13.99 | 17.6 | 20.0 | 20.0 | 62.8 | 62.8 | 6.48 | 10.32 | 10.32 | 2.86 | ||||||||||
LSB Financial Corp. | 10.00 | 15.5 | 33.3 | 26.9 | 45.9 | 45.9 | 4.19 | 9.13 | 9.13 | 5.00 | ||||||||||
Mayflower Bancorp, Inc. | 8.00 | 16.7 | 14.3 | 14.8 | 81.8 | 81.9 | 6.77 | 8.28 | 8.27 | 3.00 | ||||||||||
North Central Bancshares, Inc. | 15.50 | 20.9 | 7.8 | 8.0 | 54.8 | 54.8 | 4.59 | 10.61 | 10.61 | 0.26 | ||||||||||
Rome Bancorp, Inc. | 9.09 | 61.8 | 19.3 | 19.1 | 102.4 | 102.4 | 18.73 | 18.30 | 18.30 | 3.96 | ||||||||||
Wayne Savings Bancshares, Inc. | 7.93 | 23.8 | 11.8 | 11.5 | 65.1 | 69.1 | 5.91 | 9.08 | 8.60 | 2.52 |
| (1) | Pro forma ratios assume sale of 100% of the to-be-outstanding common stock, reflecting gross proceeds of $4.3 million at the minimum, $5.0 million at the midpoint, $5.8 million at the maximum, and $6.6 million at the adjusted maximum of the valuation range. |
| (2) | Excludes mutual holding companies and companies being acquired in announced merger transactions. |
Source: Fairmount Bank; SNL Financial; Feldman Financial.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 11
Pro Forma Assumptions for Conversion Stock Offering
| 1. | The total amount of the net offering proceeds was fully invested at the beginning of the applicable period. |
| 2. | The net offering proceeds are invested to yield a return of 1.70%, which represented the yield on three-year U.S. Treasury securities at December 31, 2009. The effective corporate income tax rate was assumed to be 34.0%, resulting in a net after-tax yield of 1.12%. |
| 3. | It is assumed that 8.0% of the total shares of common stock to be sold in the offering will be acquired by the Bank’s employee stock ownership plan (“ESOP”). Pro forma adjustments have been made to earnings and equity to reflect the impact of the ESOP. The annual expense is estimated based on a 10-year loan to the ESOP from the Company. No re-investment is assumed on proceeds used to fund the ESOP. |
| 4. | It is assumed that that the Bank’s recognition and retention plan (“RRP”) will purchase in the open market a number of shares equal to 4.0% of the total shares sold in the offering. Also, it is assumed that these shares are acquired at the initial public offering price of $10.00 per share. Pro forma adjustments have been made to earnings and equity to reflect the impact of the RRP. The annual expense is estimated based on a five-year vesting period. No re-investment is assumed on proceeds used to fund the RRP. |
| 5. | It is assumed that an additional 10.0% of the total shares sold in the offering will be reserved for issuance by the Bank’s stock option plan. The pro forma net income has been adjusted to reflect the expense associated with the granting of options at an assumed options value of $4.02 per share. It is further assumed that options for all shares reserved under the plan were granted to plan participants at the beginning of the period, 25% of the options granted were non-qualified options for income tax purposes, the options would vest at a rate of 20% per year, and compensation expense will be recognized on a straight-line basis over the five-year vesting period. |
| 6. | The fair value of stock options has been estimated at $4.02 per option using the Black-Scholes option pricing model with the following assumptions: a grant-date share price and option exercise price of $10.00; dividend yield of 0.00%; an expected option life of 10 years; a risk-free interest rate of 3.31%; and a volatility rate of 22.35% based on an index of publicly traded thrift institutions. |
| 7. | Total offering expenses are estimated at $700,000. |
| 8. | No effect has been given to withdrawals from deposit accounts for the purpose of purchasing common stock in the offering. |
| 9. | No effect has been given in the pro forma equity calculation for the assumed earnings on the net proceeds. |
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 12
Pro Forma Conversion Valuation Range
Fairmount Bank
Historical Financial Data as of December 31, 2009
(Dollars in Thousands, Except Per Share Data)
| Minimum | Midpoint | Maximum | Adj. Max. | |||||||||||||
Shares sold | 425,000 | 500,000 | 575,000 | 661,250 | ||||||||||||
Offering price | $ | 10.00 | $ | 10.00 | $ | 10.00 | $ | 10.00 | ||||||||
Gross proceeds | $ | 4,250 | $ | 5,000 | $ | 5,750 | $ | 6,613 | ||||||||
Less: estimated offering expenses | (700 | ) | (700 | ) | (700 | ) | (700 | ) | ||||||||
Net offering proceeds | 3,550 | 4,300 | 5,050 | 5,913 | ||||||||||||
Less: ESOP purchase | (340 | ) | (400 | ) | (460 | ) | (529 | ) | ||||||||
Less: RRP purchase | (170 | ) | (200 | ) | (230 | ) | (265 | ) | ||||||||
Net investable proceeds | $ | 3,040 | $ | 3,700 | $ | 4,360 | $ | 5,119 | ||||||||
Net Income: | ||||||||||||||||
Historical LTM ended 12/31/09 | $ | 433 | $ | 433 | $ | 433 | $ | 433 | ||||||||
Pro forma income on net proceeds | 34 | 41 | 49 | 57 | ||||||||||||
Pro forma ESOP adjustment | (22 | ) | (26 | ) | (30 | ) | (35 | ) | ||||||||
Pro forma RRP adjustment | (22 | ) | (26 | ) | (30 | ) | (35 | ) | ||||||||
Pro forma option adjustment | (31 | ) | (37 | ) | (42 | ) | (49 | ) | ||||||||
Pro forma net income | $ | 392 | $ | 385 | $ | 380 | $ | 371 | ||||||||
Pro forma earnings per share | $ | 0.99 | $ | 0.83 | $ | 0.71 | $ | 0.60 | ||||||||
Core Earnings: | ||||||||||||||||
Historical LTM ended 12/31/09 | $ | 432 | $ | 432 | $ | 432 | $ | 432 | ||||||||
Pro forma income on net proceeds | 34 | 41 | 49 | 57 | ||||||||||||
Pro forma ESOP adjustment | (22 | ) | (26 | ) | (30 | ) | (35 | ) | ||||||||
Pro forma RRP adjustment | (22 | ) | (26 | ) | (30 | ) | (35 | ) | ||||||||
Pro forma option adjustment | (31 | ) | (37 | ) | (42 | ) | (49 | ) | ||||||||
Pro forma core earnings | $ | 391 | $ | 384 | $ | 379 | $ | 370 | ||||||||
Pro forma core earnings per share | $ | 0.99 | $ | 0.83 | $ | 0.71 | $ | 0.60 | ||||||||
Total Equity | $ | 6,897 | $ | 6,897 | $ | 6,897 | $ | 6,897 | ||||||||
Net offering proceeds | 3,550 | 4,300 | 5,050 | 5,913 | ||||||||||||
Less: ESOP purchase | (340 | ) | (400 | ) | (460 | ) | (529 | ) | ||||||||
Less: RRP purchase | (170 | ) | (200 | ) | (230 | ) | (265 | ) | ||||||||
Pro forma total equity | $ | 9,937 | $ | 10,597 | $ | 11,257 | $ | 12,016 | ||||||||
Pro forma book value | $ | 23.38 | $ | 21.19 | $ | 19.58 | $ | 18.17 | ||||||||
Tangible Equity | $ | 6,897 | $ | 6,897 | $ | 6,897 | $ | 6,897 | ||||||||
Net offering proceeds | 3,550 | 4,300 | 5,050 | 5,913 | ||||||||||||
Less: ESOP purchase | (340 | ) | (400 | ) | (460 | ) | (529 | ) | ||||||||
Less: RRP purchase | (170 | ) | (200 | ) | (230 | ) | (265 | ) | ||||||||
Pro forma tangible equity | $ | 9,937 | $ | 10,597 | $ | 11,257 | $ | 12,016 | ||||||||
Pro forma tangible book value | $ | 23.38 | $ | 21.19 | $ | 19.58 | $ | 18.17 | ||||||||
Total Assets | $ | 65,252 | $ | 65,252 | $ | 65,252 | $ | 65,252 | ||||||||
Net offering proceeds | 3,550 | 4,300 | 5,050 | 5,913 | ||||||||||||
Less: ESOP purchase | (340 | ) | (400 | ) | (460 | ) | (529 | ) | ||||||||
Less: RRP purchase | (170 | ) | (200 | ) | (230 | ) | (265 | ) | ||||||||
Pro forma total assets | $ | 68,292 | $ | 68,952 | $ | 69,612 | $ | 70,371 | ||||||||
Pro Forma Ratios: | ||||||||||||||||
Price / LTM EPS | 10.1 | 12.0 | 14.1 | 16.7 | ||||||||||||
Price / Core EPS | 10.1 | 12.0 | 14.1 | 16.7 | ||||||||||||
Price / Book Value | 42.8 | % | 47.2 | % | 51.1 | % | 55.0 | % | ||||||||
Price / Tangible Book Value | 42.8 | % | 47.2 | % | 51.1 | % | 55.0 | % | ||||||||
Price / Total Assets | 6.22 | % | 7.25 | % | 8.26 | % | 9.40 | % | ||||||||
Total Equity / Assets | 14.55 | % | 15.37 | % | 16.17 | % | 17.08 | % | ||||||||
Tangible Equity / Assets | 14.55 | % | 15.37 | % | 16.17 | % | 17.08 | % | ||||||||
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 13
Pro Forma Conversion Analysis at the Maximum Valuation
Fairmount Bank
Historical Financial Data as of December 31, 2009
Valuation Parameters | Symbol | Data | ||||
Net income — LTM | Y | $ | 433,000 | |||
Core earnings — LTM | Y | 432,000 | ||||
Net worth | B | 6,897,000 | ||||
Tangible net worth | B | 6,897,000 | ||||
Total assets | A | 65,252,000 | ||||
Expenses in conversion | X | 700,000 | ||||
Other proceeds not reinvested | O | 690,000 | ||||
ESOP purchase | E | 460,000 | ||||
ESOP expense (pre-tax) | F | 45,455 | ||||
RRP purchase | M | 230,000 | ||||
RRP expense (pre-tax) | N | 45,455 | ||||
Stock option expense (pre-tax) | Q | 46,230 | ||||
Option expense tax-deductible | D | 25.00 | % | |||
Re-investment rate (after-tax) | R | 1.12 | % | |||
Tax rate | T | 34.00 | % | |||
Shares for EPS | S | 92.80 | % | |||
Pro Forma Valuation Ratios at Maximum Value | ||||||
Price / LTM EPS | P/E | 14.08 | x | |||
Price / Core EPS | P/E | 14.08 | x | |||
Price / Book Value | P/B | 51.07 | % | |||
Price / Tangible Book | P/TB | 51.07 | % | |||
Price / Assets | P/A | 8.26 | % | |||
Pro Forma Calculation at Maximum Value | Based on | |||||||||||
| V | = | (P/E /S)*((Y-R*(O+X)-(F+N)*(1-T)-(Q-Q*D*T))) | = | $5,750,000 | [LTM earnings] | |||||||
| 1 - (P/E/ S) * R | ||||||||||||
| V | = | (P/E/ S)*((Y-R*(O+X)-(F+N)*(1-T)-(Q-Q*D*T)) | = | $5,750,000 | [Core earnings] | |||||||
| 1 - (P/E/ S) * R | ||||||||||||
| V | = | P/B* (B - X - E - M) | = | $5,750,000 | [Book value] | |||||||
| 1 -P/B | ||||||||||||
| V | = | P/TB* (B - X - E - M) | = | $5,750,000 | [Tangible book] | |||||||
| 1 -P/TB | ||||||||||||
| V | = | P/A* (B - X - E - M) | = | $5,750,000 | [Total assets] | |||||||
| 1 -P/A | ||||||||||||
Pro Forma Valuation Range | ||||||||||||||||||
| Minimum = | $5,000,000 | x | 0.85 | = | $4,250,000 | |||||||||||||
| Midpoint = | $5,000,000 | x | 1.00 | = | $5,000,000 | |||||||||||||
| Maximum = | $5,000,000 | x | 1.15 | = | $5,750,000 | |||||||||||||
| Adj. Max. = | $5,750,000 | x | 1.15 | = | $6,612,500 | |||||||||||||
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 14
Comparative Valuation Ratio Differential
Pro Forma Conversion Valuation
Computed from Market Price Data as of March 16, 2010
Valuation | Symbol | Fairmount Bank | Comparative Group | All Public Thrifts(1) | ||||||||||||
| Average | Median | Average | Median | |||||||||||||
Price / LTM EPS | P/E | 17.0 | 15.3 | 20.3 | 17.0 | |||||||||||
Minimum | (x) | 10.1 | -40.6 | % | -34.0 | % | -50.2 | % | -40.6 | % | ||||||
Midpoint | 12.0 | -29.4 | % | -21.6 | % | -40.9 | % | -29.4 | % | |||||||
Maximum | 14.1 | -17.1 | % | -7.8 | % | -30.5 | % | -17.1 | % | |||||||
Adj. Maximum | 16.7 | -1.8 | % | 9.2 | % | -17.7 | % | -1.8 | % | |||||||
Price / Core EPS | P/E | 18.3 | 15.7 | 20.1 | 16.1 | |||||||||||
Minimum | (x) | 10.1 | -44.8 | % | -35.7 | % | -49.8 | % | -37.3 | % | ||||||
Midpoint | 12.0 | -34.4 | % | -23.6 | % | -40.3 | % | -25.5 | % | |||||||
Maximum | 14.1 | -23.0 | % | -10.2 | % | -29.9 | % | -12.4 | % | |||||||
Adj. Maximum | 16.7 | -8.7 | % | 6.4 | % | -16.9 | % | 3.7 | % | |||||||
Price / Book Value | P/B | 65.8 | 63.9 | 74.2 | 73.4 | |||||||||||
Minimum | (%) | 42.8 | -35.0 | % | -33.0 | % | -42.3 | % | -41.7 | % | ||||||
Midpoint | 47.2 | -28.3 | % | -26.1 | % | -36.4 | % | -35.7 | % | |||||||
Maximum | 51.1 | -22.3 | % | -20.0 | % | -31.1 | % | -30.3 | % | |||||||
Adj. Maximum | 55.0 | -16.4 | % | -13.9 | % | -25.9 | % | -25.0 | % | |||||||
Price / Tangible Book | P/TB | 66.2 | 64.4 | 83.1 | 76.8 | |||||||||||
Minimum | (%) | 42.8 | -35.3 | % | -33.5 | % | -48.5 | % | -44.3 | % | ||||||
Midpoint | 47.2 | -28.7 | % | -26.7 | % | -43.2 | % | -38.6 | % | |||||||
Maximum | 51.1 | -22.8 | % | -20.7 | % | -38.5 | % | -33.5 | % | |||||||
Adj. Maximum | 55.0 | -16.9 | % | -14.6 | % | -33.8 | % | -28.4 | % | |||||||
Price / Total Assets | P/A | 7.50 | 6.16 | 8.17 | 6.53 | |||||||||||
Minimum | (%) | 6.22 | -17.0 | % | 1.1 | % | -23.8 | % | -4.6 | % | ||||||
Midpoint | 7.25 | -3.3 | % | 17.8 | % | -11.2 | % | 11.1 | % | |||||||
Maximum | 8.26 | 10.2 | % | 34.2 | % | 1.1 | % | 26.6 | % | |||||||
Adj. Maximum | 9.40 | 25.4 | % | 52.6 | % | 15.1 | % | 44.0 | % | |||||||
| (1) | Excludes companies subject to MHC ownership or pending acquisition. |
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 15
Financial and Market Data for All Public Thrifts
Company | Ticker | State | Total Assets ($Mil.) | Total Equity/ Assets (%) | Tang. Equity/ Assets (%) | LTM ROA (%) | LTM ROE (%) | Closing Price 3/16/10 ($) | Total Market Value ($Mil.) | Price/ LTM EPS (x) | Price/ Core EPS (x) | Price/ Book Value (%) | Price/ Tang. Book (%) | Price/ Total Assets (%) | Div. Yield (%) | |||||||||||||||||
All Public Thrifts(1) | ||||||||||||||||||||||||||||||||
Abington Bancorp, Inc. | ABBC | PA | 1,238 | 17.30 | 17.30 | (0.59 | ) | (3.15 | ) | 8.32 | 173.6 | NM | NM | 81.7 | 81.7 | 14.14 | 2.40 | |||||||||||||||
Anchor BanCorp Wisconsin(2) | ABCW | WI | 4,459 | 1.37 | 1.28 | (3.75 | ) | (128.79 | ) | 1.34 | 29.1 | NM | NM | NM | NM | 0.66 | 0.00 | |||||||||||||||
Astoria Financial Corp. | AF | NY | 20,252 | 5.97 | 5.10 | 0.13 | 2.31 | 14.82 | 1,450.9 | 49.4 | 41.6 | 113.7 | 134.4 | 6.79 | 3.51 | |||||||||||||||||
Athens Bancshares Corp. | AFCB | TN | 276 | 9.30 | NA | 0.51 | 5.39 | 10.91 | 30.3 | NA | NA | NA | NA | NA | 0.00 | |||||||||||||||||
Bank Mutual Corp. | BKMU | WI | 3,512 | 11.54 | 10.16 | 0.39 | 3.40 | 6.69 | 304.2 | 23.1 | 30.6 | 76.7 | 88.5 | 8.80 | 4.19 | |||||||||||||||||
BankAtlantic Bancorp, Inc. | BBX | FL | 4,820 | 3.03 | 2.71 | (3.45 | ) | (88.45 | ) | 2.68 | 129.4 | NM | NM | 90.2 | 99.6 | 2.73 | 0.00 | |||||||||||||||
BankFinancial Corp. | BFIN | IL | 1,567 | 16.82 | 15.37 | (0.05 | ) | (0.28 | ) | 9.40 | 201.3 | NM | NM | 76.4 | 85.1 | 12.85 | 2.98 | |||||||||||||||
BCSB Bancorp, Inc. | BCSB | MD | 586 | 10.26 | 10.25 | (0.26 | ) | (2.56 | ) | 9.50 | 29.6 | NM | 16.1 | 59.6 | 59.7 | 5.06 | 0.00 | |||||||||||||||
Beacon Federal Bancorp, Inc. | BFED | NY | 1,067 | 9.49 | 9.49 | 0.34 | 3.58 | 8.69 | 56.8 | 16.1 | 11.3 | 56.1 | 56.1 | 5.33 | 2.30 | |||||||||||||||||
Berkshire Hills Bancorp, Inc. | BHLB | MA | 2,700 | 14.24 | 8.26 | (0.60 | ) | (3.90 | ) | 18.81 | 263.9 | NM | NM | 68.1 | 125.6 | 9.69 | 3.40 | |||||||||||||||
BofI Holding, Inc. | BOFI | CA | 1,345 | 7.63 | 7.63 | 1.20 | 17.14 | 13.24 | 108.4 | 7.7 | 8.3 | 116.9 | 116.9 | 8.12 | 0.00 | |||||||||||||||||
Broadway Financial Corp. | BYFC | CA | 520 | 6.40 | 6.40 | 0.31 | 4.38 | 6.25 | 10.9 | 14.2 | 10.9 | 48.7 | 48.7 | 2.14 | 3.20 | |||||||||||||||||
Brookline Bancorp, Inc. | BRKL | MA | 2,616 | 18.71 | 17.24 | 0.75 | 4.03 | 10.84 | 639.9 | 32.9 | 34.0 | 131.2 | 145.1 | 24.47 | 3.14 | |||||||||||||||||
Cape Bancorp, Inc. | CBNJ | NJ | 1,073 | 11.80 | 9.85 | (1.64 | ) | (12.89 | ) | 7.40 | 98.5 | NM | NA | 77.8 | 95.4 | 9.18 | 0.00 | |||||||||||||||
Carver Bancorp, Inc. | CARV | NY | 812 | 8.01 | 7.98 | 0.15 | 1.89 | 7.60 | 18.8 | NM | NM | 40.9 | 41.1 | 2.37 | 5.26 | |||||||||||||||||
Central Bancorp, Inc. | CEBK | MA | 558 | 7.80 | 7.43 | 0.04 | 0.50 | 9.49 | 15.5 | NM | NM | 45.7 | 48.9 | 2.83 | 2.11 | |||||||||||||||||
Central Federal Corp. | CFBK | OH | 280 | 9.06 | 9.06 | (2.66 | ) | (24.61 | ) | 1.20 | 4.9 | NM | NM | 26.7 | 26.7 | 1.80 | 0.00 | |||||||||||||||
CFS Bancorp, Inc. | CITZ | IN | 1,082 | 10.21 | 10.21 | (0.05 | ) | (0.48 | ) | 4.37 | 47.3 | NM | NM | 42.6 | 42.6 | 4.35 | 0.92 | |||||||||||||||
Chicopee Bancorp, Inc. | CBNK | MA | 544 | 17.31 | 17.31 | (0.30 | ) | (1.69 | ) | 12.85 | 82.0 | NM | NM | 87.1 | 87.1 | 15.07 | 0.00 | |||||||||||||||
Citizens Community Bancorp | CZWI | WI | 567 | 9.74 | 8.67 | (0.61 | ) | (5.61 | ) | 4.00 | 20.5 | NM | 10.6 | 37.1 | 42.1 | 3.61 | 0.00 | |||||||||||||||
Citizens South Banking Corp. | CSBC | NC | 792 | 9.14 | 9.07 | (3.61 | ) | (28.79 | ) | 4.80 | 36.1 | NM | NM | 69.9 | 70.6 | 4.70 | 3.33 | |||||||||||||||
CMS Bancorp, Inc. | CMSB | NY | 227 | 9.19 | 9.19 | (0.15 | ) | (1.59 | ) | 8.00 | 14.9 | NM | NM | 71.3 | 71.3 | 6.56 | 0.00 | |||||||||||||||
Community Financial Corp. | CFFC | VA | 541 | 8.97 | 8.97 | 0.40 | 4.52 | 4.10 | 17.9 | 13.2 | 11.7 | 49.2 | 49.2 | 3.31 | 0.00 | |||||||||||||||||
Danvers Bancorp, Inc. | DNBK | MA | 2,500 | 11.43 | 10.17 | 0.28 | 2.30 | 14.90 | 323.4 | 48.1 | 43.8 | 113.2 | 130.0 | 12.94 | 0.54 | |||||||||||||||||
Dime Community Bancshares | DCOM | NY | 3,952 | 7.46 | 6.14 | 0.66 | 9.20 | 13.74 | 472.6 | 17.4 | 14.1 | 160.3 | 193.8 | 11.96 | 4.08 | |||||||||||||||||
Elmira Savings Bank, FSB | ESBK | NY | 499 | 10.92 | NA | 0.91 | 8.52 | 15.89 | 30.5 | 9.9 | 9.6 | 84.4 | NA | 6.34 | 5.03 | |||||||||||||||||
ESB Financial Corp. | ESBF | PA | 1,961 | 8.40 | 6.35 | 0.59 | 7.44 | 13.28 | 160.0 | 13.3 | 12.1 | 96.9 | 131.0 | 8.15 | 3.01 | |||||||||||||||||
ESSA Bancorp, Inc. | ESSA | PA | 1,034 | 17.62 | 17.62 | 0.53 | 2.93 | 12.93 | 182.2 | 31.5 | 30.5 | 100.2 | 100.2 | 17.66 | 1.55 | |||||||||||||||||
FFD Financial Corp. | FFDF | OH | 198 | 9.06 | 9.06 | 0.41 | 4.38 | 12.52 | 12.7 | 16.3 | 15.2 | 70.7 | 70.7 | 6.41 | 5.43 | |||||||||||||||||
Fidelity Bancorp, Inc. | FSBI | PA | 736 | 6.38 | 6.04 | (0.43 | ) | (6.59 | ) | 5.10 | 15.5 | NM | NM | 38.6 | 41.4 | 2.13 | 1.57 | |||||||||||||||
First Advantage Bancorp | FABK | TN | 344 | 20.49 | 20.49 | 0.10 | 0.51 | 10.41 | 46.5 | NM | 39.8 | 66.0 | 66.0 | 13.52 | 1.92 | |||||||||||||||||
First Bancshares, Inc. | FBSI | MO | 210 | 11.43 | 11.36 | (0.45 | ) | (4.23 | ) | 9.00 | 14.0 | NM | NM | 58.1 | 58.5 | 6.64 | 0.00 | |||||||||||||||
First Capital, Inc. | FCAP | IN | 456 | NA | NA | 0.17 | NA | 15.00 | 41.4 | NM | 46.2 | NA | NA | NA | 4.80 | |||||||||||||||||
First Clover Leaf Financial Corp. | FCLF | IL | 603 | 13.20 | 11.29 | (1.07 | ) | (7.50 | ) | 6.11 | 48.6 | NM | NM | 62.0 | 74.1 | 8.18 | 3.93 |
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 15 (continued)
Financial and Market Data for All Public Thrifts
Company | Ticker | State | Total Assets ($Mil.) | Total Equity/ Assets (%) | Tang. Equity/ Assets (%) | LTM ROA (%) | LTM ROE (%) | Closing Price 3/16/10 ($) | Total Market Value ($Mil.) | Price/ LTM EPS (x) | Price/ Core EPS (x) | Price/ Book Value (%) | Price/ Tang. Book (%) | Price/ Total Assets (%) | Div. Yield (%) | |||||||||||||||||
First Community Bank Corp. | FCFL | FL | 550 | NA | NA | (0.91 | ) | NA | 2.60 | 14.2 | NM | NA | NA | NA | NA | 0.00 | ||||||||||||||||
First Defiance Financial Corp. | FDEF | OH | 2,058 | 11.38 | 8.56 | 0.36 | 3.09 | 10.93 | 88.7 | 17.4 | 10.5 | 44.9 | 66.1 | 4.39 | 0.00 | |||||||||||||||||
First Federal Bancshares | FFBH | AR | 750 | 8.34 | 8.34 | (3.38 | ) | (33.16 | ) | 3.29 | 16.0 | NM | NM | 34.4 | 34.4 | 2.17 | 0.00 | |||||||||||||||
First Federal of No. Mich. Bancp. | FFNM | MI | 234 | 9.87 | 9.52 | (2.79 | ) | (24.30 | ) | 1.58 | 4.6 | NM | NM | 19.8 | 20.6 | 1.95 | 0.00 | |||||||||||||||
First Financial Holdings, Inc. | FFCH | SC | 3,476 | 10.20 | 9.19 | 0.91 | 10.44 | 13.39 | 221.3 | 5.4 | 46.6 | 76.4 | 88.2 | 6.49 | 1.49 | |||||||||||||||||
First Financial Northwest, Inc. | FFNW | WA | 1,315 | 17.37 | 17.37 | (3.14 | ) | (15.18 | ) | 7.41 | 139.4 | NM | NM | 61.0 | 61.0 | 10.60 | 4.59 | |||||||||||||||
First Franklin Corp. | FFHS | OH | NA | NA | NA | NA | NA | 7.00 | 11.8 | NM | NA | 53.0 | 53.0 | NA | 0.00 | |||||||||||||||||
First Keystone Financial, Inc.(2) | FKFS | PA | 506 | 6.38 | 6.38 | (0.55 | ) | (8.39 | ) | 12.91 | 31.4 | NM | NM | 97.6 | 97.6 | 6.21 | 0.00 | |||||||||||||||
First Niagara Financial Group | FNFG | NY | 14,585 | 16.27 | 10.54 | 0.69 | 3.95 | 14.53 | 2,739.0 | 31.6 | 21.6 | 113.2 | 186.8 | NA | 3.85 | |||||||||||||||||
First PacTrust Bancorp, Inc. | FPTB | CA | 894 | 10.91 | 10.91 | (0.11 | ) | (1.03 | ) | 6.30 | 26.7 | NM | NM | 34.1 | 34.1 | 3.06 | 3.17 | |||||||||||||||
First Place Financial Corp. | FPFC | OH | 3,259 | 8.52 | 8.23 | (0.47 | ) | (5.75 | ) | 3.99 | 67.7 | NM | NM | 32.5 | 34.2 | 2.12 | 0.00 | |||||||||||||||
First Savings Financial Group | FSFG | IN | 491 | 10.71 | 9.13 | 0.47 | 2.99 | 11.30 | 27.3 | 17.1 | 17.2 | 51.8 | 61.9 | 5.55 | 0.00 | |||||||||||||||||
Flagstar Bancorp, Inc. | FBC | MI | 14,013 | 4.26 | 4.26 | (3.13 | ) | (60.77 | ) | 0.82 | 733.9 | NM | NM | 117.1 | 117.1 | 2.81 | 0.00 | |||||||||||||||
Flushing Financial Corp. | FFIC | NY | 4,143 | 8.69 | 8.29 | 0.63 | 7.80 | 13.39 | 417.1 | 14.7 | 12.3 | 115.7 | 121.4 | 10.06 | 3.88 | |||||||||||||||||
GS Financial Corp. | GSLA | LA | 272 | 10.32 | 10.32 | 0.34 | 3.14 | 13.99 | 17.6 | 20.0 | 20.0 | 62.8 | 62.8 | 6.48 | 2.86 | |||||||||||||||||
Hampden Bancorp, Inc. | HBNK | MA | 575 | 16.47 | 16.47 | (0.14 | ) | (0.81 | ) | 9.92 | 71.8 | NM | NM | 76.0 | 76.0 | 12.51 | 1.21 | |||||||||||||||
Harleysville Savings Fin’l Corp. | HARL | PA | 840 | 6.06 | 6.06 | 0.55 | 9.20 | 13.65 | 49.8 | 10.9 | 9.8 | 97.8 | 97.8 | 5.93 | 5.57 | |||||||||||||||||
HF Financial Corp. | HFFC | SD | 1,175 | 7.85 | 7.46 | 0.58 | 8.37 | 10.03 | 69.6 | 8.0 | 6.8 | 75.4 | 79.7 | 5.92 | 4.49 | |||||||||||||||||
Hingham Institution for Savings | HIFS | MA | 926 | 7.05 | 7.05 | 0.93 | 12.79 | 32.00 | 68.0 | 8.4 | 8.2 | 104.1 | 104.1 | 7.34 | 2.75 | |||||||||||||||||
HMN Financial, Inc. | HMNF | MN | 1,036 | 9.64 | 9.64 | (1.00 | ) | (10.33 | ) | 5.09 | 22.0 | NM | NM | 28.4 | 28.4 | 2.13 | 0.00 | |||||||||||||||
Home Bancorp, Inc. | HBCP | LA | 525 | 25.30 | 25.30 | 0.89 | 3.58 | 13.98 | 121.4 | 24.1 | 18.7 | 92.4 | 92.4 | 23.38 | 0.00 | |||||||||||||||||
Home Federal Bancorp, Inc. | HOME | ID | 822 | 25.34 | 25.34 | 1.16 | 4.22 | 14.50 | 242.1 | 25.9 | NM | 116.2 | 116.2 | 29.44 | 1.52 | |||||||||||||||||
HopFed Bancorp, Inc. | HFBC | KY | 1,029 | 7.77 | 7.66 | 0.20 | 2.45 | 11.35 | 40.8 | 43.7 | NM | 65.8 | 67.1 | 4.03 | 4.23 | |||||||||||||||||
Hudson City Bancorp, Inc. | HCBK | NJ | 60,268 | 8.86 | 8.62 | 0.92 | 10.18 | 14.05 | 7,402.5 | 13.1 | 13.2 | 129.5 | 133.4 | 11.47 | 4.27 | |||||||||||||||||
Independence Federal Svgs. Bank | IFSB | DC | 167 | 5.96 | 5.96 | (0.06 | ) | (1.17 | ) | 1.41 | 2.2 | NM | NM | 21.9 | 21.9 | 1.31 | 0.00 | |||||||||||||||
Jefferson Bancshares, Inc. | JFBI | TN | 671 | 11.98 | 8.63 | 0.21 | 1.73 | 4.46 | 29.9 | 20.3 | 19.5 | 37.2 | 53.6 | 4.46 | 0.00 | |||||||||||||||||
Legacy Bancorp, Inc. | LEGC | MA | 946 | 12.83 | 11.72 | (0.82 | ) | (6.19 | ) | 9.70 | 84.6 | NM | NM | 69.8 | 77.7 | 8.96 | 2.06 | |||||||||||||||
Louisiana Bancorp, Inc. | LABC | LA | 330 | 22.24 | 22.24 | 0.78 | 3.17 | 15.00 | 75.9 | 27.8 | 29.9 | NA | NA | NA | 0.00 | |||||||||||||||||
LSB Corp. | LSBX | MA | 817 | 7.41 | 7.41 | 0.64 | 6.97 | 12.98 | 58.5 | 15.3 | 20.4 | 96.7 | 96.7 | 7.16 | 2.16 | |||||||||||||||||
LSB Financial Corp. | LSBI | IN | 371 | 9.13 | 9.13 | 0.12 | 1.35 | 10.00 | 15.5 | 33.3 | 26.9 | 45.9 | 45.9 | 4.19 | 5.00 | |||||||||||||||||
Mayflower Bancorp, Inc. | MFLR | MA | 246 | 8.28 | 8.27 | 0.47 | 5.85 | 8.00 | 16.7 | 14.3 | 14.8 | 81.8 | 81.9 | 6.77 | 3.00 | |||||||||||||||||
Meta Financial Group, Inc. | CASH | IA | 916 | 5.08 | 4.82 | (0.11 | ) | (1.96 | ) | 22.85 | 70.1 | NM | NM | 129.8 | 137.2 | 6.59 | 2.28 | |||||||||||||||
MutualFirst Financial, Inc. | MFSF | IN | 1,399 | 9.27 | 8.89 | 0.23 | 2.42 | 6.10 | 42.6 | 30.5 | 14.5 | 43.4 | 46.2 | 3.12 | 3.93 | |||||||||||||||||
NASB Financial, Inc. | NASB | MO | 1,560 | 10.67 | 10.52 | 1.20 | 11.80 | 22.27 | 175.2 | 9.4 | 10.8 | 105.3 | 107.0 | 11.23 | 4.04 | |||||||||||||||||
New Hampshire Thrift Bancshs. | NHTB | NH | 963 | 9.12 | NA | 0.74 | 7.75 | 10.50 | 60.6 | 9.9 | NA | 77.9 | NA | 6.36 | 4.95 |
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 15 (continued)
Financial and Market Data for All Public Thrifts
Company | Ticker | State | Total Assets ($Mil.) | Total Equity/ Assets (%) | Tang. Equity/ Assets (%) | LTM ROA (%) | LTM ROE (%) | Closing Price 3/16/10 ($) | Total Market Value ($Mil.) | Price/ LTM EPS (x) | Price/ Core EPS (x) | Price/ Book Value (%) | Price/ Tang. Book (%) | Price/ Total Assets (%) | Div. Yield (%) | |||||||||||||||||
New York Community Bancorp | NYB | NY | 42,154 | 12.73 | 7.13 | 1.20 | 9.29 | 17.08 | 7,399.4 | 15.1 | 15.7 | 137.7 | 261.6 | 17.54 | 5.85 | |||||||||||||||||
NewAlliance Bancshares, Inc. | NAL | CT | 8,434 | 17.01 | 11.08 | 0.55 | 3.30 | 12.81 | 1,357.5 | 27.3 | 28.0 | 94.7 | 155.7 | 16.11 | 2.19 | |||||||||||||||||
Newport Bancorp, Inc. | NFSB | RI | 459 | 11.20 | 11.20 | 0.16 | 1.34 | 11.75 | 45.0 | NM | NM | 87.6 | 87.6 | 9.81 | 0.00 | |||||||||||||||||
North Central Bancshares, Inc. | FFFD | IA | 455 | 10.61 | 10.61 | 0.69 | 6.79 | 15.50 | 20.9 | 7.8 | 8.0 | 54.8 | 54.8 | 4.59 | 0.26 | |||||||||||||||||
Northwest Bancshares, Inc. | NWBI | PA | 8,025 | 16.40 | 14.53 | 0.46 | 4.71 | 11.80 | 1,306.0 | 39.3 | 35.5 | 99.2 | 114.5 | 16.27 | 3.39 | |||||||||||||||||
OBA Financial Services, Inc. | OBAF | MD | NA | NA | NA | NA | NA | 10.45 | 48.4 | NA | NA | NA | NA | NA | 0.00 | |||||||||||||||||
Ocean Shore Holding Co. | OSHC | NJ | 770 | 12.64 | 12.64 | 0.58 | 5.95 | 10.91 | 79.7 | 18.5 | NA | NA | NA | NA | 2.20 | |||||||||||||||||
OceanFirst Financial Corp. | OCFC | NJ | 2,030 | 9.04 | 9.04 | 0.82 | 9.35 | 11.51 | 216.6 | 11.7 | 10.6 | 118.1 | 118.1 | 10.67 | 4.17 | |||||||||||||||||
OmniAmerican Bancorp, Inc. | OABC | TX | 1,134 | 8.04 | 8.04 | 0.06 | 0.73 | 11.85 | 141.0 | NA | NA | NA | NA | NA | 0.00 | |||||||||||||||||
Pamrapo Bancorp, Inc.(2) | PBCI | NJ | 558 | 8.65 | 8.65 | (1.14 | ) | (12.78 | ) | 8.10 | 40.0 | NM | NM | 82.9 | 82.9 | 7.17 | 0.00 | |||||||||||||||
Park Bancorp, Inc. | PFED | IL | 222 | 11.55 | 11.55 | (1.26 | ) | (10.68 | ) | 5.98 | 7.1 | NM | NM | 27.9 | 27.9 | 3.22 | 0.00 | |||||||||||||||
Parkvale Financial Corp. | PVSA | PA | 1,916 | 7.91 | 6.49 | (0.50 | ) | (6.19 | ) | 7.15 | 39.4 | NM | 7.0 | 32.9 | 43.4 | 2.09 | 2.80 | |||||||||||||||
People’s United Financial, Inc. | PBCT | CT | 21,257 | 24.00 | 18.16 | 0.49 | 1.97 | 15.61 | 5,651.2 | NM | NM | 102.7 | 146.2 | 24.64 | 3.91 | |||||||||||||||||
Provident Financial Holdings | PROV | CA | 1,415 | 8.74 | 8.74 | (0.24 | ) | (3.22 | ) | 3.60 | 41.0 | NM | NM | 33.2 | 33.2 | 2.90 | 1.11 | |||||||||||||||
Provident Financial Services | PFS | NJ | 6,836 | 12.94 | 8.15 | (1.83 | ) | (13.33 | ) | 11.80 | 712.2 | NM | NM | 79.8 | 134.1 | 10.32 | 3.73 | |||||||||||||||
Provident New York Bancorp | PBNY | NY | 2,918 | 14.41 | 9.25 | 0.89 | 6.10 | 9.07 | 354.3 | 13.7 | 26.9 | 84.3 | 139.3 | 12.14 | 2.65 | |||||||||||||||||
Pulaski Financial Corp. | PULB | MO | 1,434 | 8.17 | 7.90 | 0.40 | 4.88 | 6.77 | 71.4 | 17.8 | 16.2 | 79.8 | 83.8 | 4.91 | 5.61 | |||||||||||||||||
PVF Capital Corp. | PVFC | OH | 869 | 6.16 | 6.16 | (1.52 | ) | (24.62 | ) | 1.96 | 15.6 | NM | NM | 29.2 | 29.2 | 1.80 | 0.00 | |||||||||||||||
River Valley Bancorp | RIVR | IN | 396 | 7.75 | 7.75 | 0.44 | 6.64 | 13.21 | 19.9 | 12.1 | NA | NA | NA | NA | 6.36 | |||||||||||||||||
Riverview Bancorp, Inc. | RVSB | WA | 858 | 10.38 | 7.59 | (0.16 | ) | (1.60 | ) | 2.40 | 26.2 | NM | NM | 29.6 | 42.2 | 3.06 | 0.00 | |||||||||||||||
Rome Bancorp, Inc. | ROME | NY | 330 | 18.30 | 18.30 | 0.92 | 5.27 | 9.09 | 61.8 | 19.3 | 19.1 | 102.4 | 102.4 | 18.73 | 3.96 | |||||||||||||||||
Severn Bancorp, Inc. | SVBI | MD | 968 | 10.98 | 10.95 | (1.54 | ) | (13.13 | ) | 4.13 | 41.6 | NM | NM | 52.2 | 52.4 | 4.42 | 0.00 | |||||||||||||||
Superior Bancorp | SUPR | AL | 3,222 | 5.95 | 5.46 | (0.63 | ) | (8.16 | ) | 3.35 | 39.2 | NM | 5.6 | 20.4 | 22.3 | 1.21 | 0.00 | |||||||||||||||
Teche Holding Company | TSH | LA | 757 | 9.55 | 9.11 | 0.91 | 9.77 | 33.18 | 69.7 | 9.9 | 9.1 | 96.2 | 101.3 | 9.19 | 4.28 | |||||||||||||||||
Territorial Bancorp Inc. | TBNK | HI | 1,390 | 15.81 | 15.81 | 0.66 | 5.52 | 20.09 | 245.8 | NA | NA | 111.9 | 111.9 | 17.68 | 1.00 | |||||||||||||||||
TF Financial Corp. | THRD | PA | 714 | 10.04 | 9.46 | 0.63 | 6.63 | 19.00 | 50.8 | 10.6 | 11.3 | 67.4 | 71.7 | 6.76 | 4.21 | |||||||||||||||||
TierOne Corp. | TONE | NE | 3,161 | 7.73 | 7.61 | (0.84 | ) | (10.18 | ) | 0.63 | 11.4 | NM | NM | 4.7 | 4.7 | 0.36 | 0.00 | |||||||||||||||
Timberland Bancorp, Inc. | TSBK | WA | 716 | 12.17 | 11.39 | (0.06 | ) | (0.42 | ) | 4.02 | 28.3 | NM | 46.2 | 39.6 | 43.4 | 4.04 | 1.00 | |||||||||||||||
TrustCo Bank Corp NY | TRST | NY | 3,680 | 6.68 | 6.66 | 0.79 | 11.72 | 6.27 | 481.3 | 17.0 | 17.0 | 195.6 | 195.9 | 13.06 | 3.99 | |||||||||||||||||
United Community Fin’l Corp. | UCFC | OH | 2,338 | 9.40 | 9.37 | (0.67 | ) | (6.91 | ) | 1.45 | 44.8 | NM | NM | 20.4 | 20.5 | 1.92 | 0.00 | |||||||||||||||
United Financial Bancorp, Inc. | UBNK | MA | 1,541 | 14.62 | 14.15 | 0.46 | 2.67 | 14.79 | 247.6 | 38.9 | 29.3 | 110.6 | 114.6 | 16.16 | 1.89 | |||||||||||||||||
United Western Bancorp, Inc. | UWBK | CO | 2,526 | 6.32 | 6.32 | (1.68 | ) | (29.84 | ) | 1.64 | 48.2 | NM | NM | 30.2 | 30.2 | 1.91 | 0.00 | |||||||||||||||
Washington Federal, Inc. | WFSL | WA | 12,662 | 13.69 | 11.93 | 0.28 | 2.16 | 20.35 | 2,288.3 | NM | NM | 132.0 | 154.9 | 18.07 | 0.98 | |||||||||||||||||
Wayne Savings Bancshares | WAYN | OH | 403 | 9.08 | 8.60 | 0.49 | 5.52 | 7.93 | 23.8 | 11.8 | 11.5 | 65.1 | 69.1 | 5.91 | 2.52 | |||||||||||||||||
Westfield Financial, Inc. | WFD | MA | 1,191 | 20.76 | 20.76 | 0.47 | 2.12 | 8.92 | 278.5 | 49.6 | 43.8 | 107.6 | 107.6 | 22.33 | 2.24 |
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 15 (continued)
Financial and Market Data for All Public Thrifts
Company | Ticker | State | Total Assets ($Mil.) | Total Equity/ Assets (%) | Tang. Equity/ Assets (%) | LTM ROA (%) | LTM ROE (%) | Closing Price 3/16/10 ($) | Total Market Value ($Mil.) | Price/ LTM EPS (x) | Price/ Core EPS (x) | Price/ Book Value (%) | Price/ Tang. Book (%) | Price/ Total Assets (%) | Div. Yield (%) | |||||||||||||||||
WSB Holdings, Inc. | WSB | MD | 438 | 12.07 | 12.07 | (1.27 | ) | (10.69 | ) | 3.05 | 23.9 | NM | NA | 45.3 | 45.3 | 5.47 | 0.00 | |||||||||||||||
WSFS Financial Corp. | WSFS | DE | 3,749 | 8.05 | 7.72 | 0.02 | 0.24 | 37.76 | 267.5 | NM | NM | 107.0 | 113.5 | 7.23 | 1.27 | |||||||||||||||||
WVS Financial Corp. | WVFC | PA | 392 | 7.84 | 7.84 | 0.34 | 4.55 | 14.01 | 28.9 | 20.9 | 19.6 | 94.2 | 94.2 | 7.39 | 4.57 | |||||||||||||||||
Average(2) | NA | NA | 3,165 | 11.10 | 10.33 | (0.10 | ) | (1.69 | ) | NA | 386.4 | 20.3 | 20.1 | 74.2 | 83.1 | 8.17 | 2.08 | |||||||||||||||
Median(2) | NA | NA | 954 | 9.81 | 9.11 | 0.22 | 2.23 | NA | 53.8 | 17.0 | 16.1 | 73.4 | 76.8 | 6.53 | 2.09 |
| (1) | Traded on NYSE, NYSE Amex, or NASDAQ; excludes public thrifts subject to mutual holding company ownership. |
| (2) | Average and mean data exclude companies subject to pending acquisition; P/E ratios consider values greater than 50 or less than zero as non-meaningful. |
Source: SNL Financial; Feldman Financial.
