Exhibit 99.1
CONVERSION VALUATION APPRAISAL REPORT
Prepared for:
Ottawa Bancorp, Inc.
Ottawa, Illinois
As Of:
May 16, 2016
Prepared By:
Keller & Company, Inc.
555 Metro Place North
Suite 524
Dublin, Ohio 43017
(614) 766-1426
KELLER & COMPANY
KELLER & COMPANY, INC.
FINANCIAL INSTITUTION CONSULTANTS
555 METRO PLACE NORTH
SUITE 524
DUBLIN, OHIO 43017
(614) 766-1426 (614) 766-1459 FAX
May 25, 2016
Board of Directors
Ottawa Bancorp, Inc.
925 LaSalle Street
Ottawa, Illinois 61350
To the Board:
We hereby submit an independent appraisal (“Appraisal”) of the pro forma market value of the common stock to be issued by the new Ottawa Bancorp, Inc. (the “Corporation”) in conjunction with the second stage stock conversion of Ottawa Savings Bancorp, MHC (the “MHC”) from the mutual to the stock form of ownership. The MHC currently owns 69.1 percent of the stock of the new Ottawa Bancorp, Inc., formerly Ottawa Savings Bancorp, Inc., the mid-tier holding company of Ottawa Savings Bank (the “Bank”), which remains at 69.1 percent with the inclusion of the $128,000 in cash held by Ottawa Savings Bancorp, MHC. The remaining 30.9 percent of the Corporation’s common stock is owned by public shareholders. The exchange ratios established by the Corporation as applied to the value established herein are 0.8811 shares, 1.0366 shares, and 1.1921 shares for each share of the Corporation’s common stock at the minimum, midpoint and maximum, respectively, of the valuation range. This appraisal was prepared and provided to the Corporation in accordance with regulatory appraisal requirements.
Keller & Company, Inc. is an independent, financial institution consulting firm that serves both thrift institutions and banks. The firm is a full-service consulting organization, as described in more detail in Exhibit A in the Appraisal, specializing in business and strategic plans, stock valuations, conversion and reorganization appraisals, market studies and fairness opinions for thrift institutions and banks. The firm has affirmed its independence in this transaction with the preparation of its Affidavit of Independence, a copy of which is included as Exhibit C in the Appraisal.
Our appraisal is based on the assumption that the data provided to us by the Bancorp and the Bank and the material provided by the independent auditors, RSM US LLP, Chicago, Illinois, are both accurate and complete. We did not verify the financial statements provided to us, nor did we conduct independent valuations of the Bank’s assets and liabilities. We have also used information from other public sources, but we cannot assure the accuracy of such material.
Board of Directors
Ottawa Bancorp, Inc.
May 25, 2016
Page 2
In the preparation of this appraisal, we held discussions with the management of the Bancorp and the Bank, with the law firm of Kilpatrick Townsend & Stockton, LLP, Washington, D.C., the Bank’s conversion counsel, and with Sandler + O’Neill, the Bank’s investment banking firm. Further, we viewed the Bank’s local economy and primary market area and also reviewed the Bank’s most recent Business Plan as part of our review process.
This valuation must not be considered to be a recommendation as to the purchase of stock in the Corporation, and we can provide no guarantee or assurance that any person who purchases shares of the Corporation’s stock will be able to later sell such shares at a price equivalent to the price designated in this appraisal.
Our valuation will be updated as required and will give consideration to any new developments in the Bank’s operation that have an impact on operations or financial condition. Further, we will give consideration to any changes in general market conditions and to specific changes in the market for publicly-traded thrift institutions. Based on the material impact of any such changes on the pro forma market value of the Corporation as determined by this firm, we will make necessary adjustments to the Corporation’s appraised value in such appraisal update.
It is our opinion that as of May 16, 2016, the pro forma market value or appraised value of the Corporation was $30,000,000 at the midpoint, with a public offering of $20,730,000 or 2,073,000 shares at $10 per share, representing 69.1 percent of the total valuation. The pro forma valuation range of the Corporation is from a minimum of $25,500,000 to a maximum of $34,500,000, representing public offering ranges of $17,620,500 at the minimum to a maximum of $23,839,500, representing 1,762,050 shares and 2,383,950 shares at $10 per share at the minimum and maximum, respectively.
The pro forma appraised value of the Corporation as of May 16, 2016, is $30,000,000, at the midpoint with a midpoint public offering of $20,730,000.
Very truly yours, |
KELLER & COMPANY, INC. |
TABLE OF CONTENTS
PAGE | ||||||||
INTRODUCTION | 1 | |||||||
I. | Description of Ottawa Savings Bank | |||||||
General | 4 | |||||||
Performance Overview | 8 | |||||||
Income and Expense | 10 | |||||||
Yields and Costs | 15 | |||||||
Interest Rate Sensitivity | 17 | |||||||
Lending Activities | 19 | |||||||
Nonperforming Assets | 24 | |||||||
Investments | 27 | |||||||
Deposit Activities | 28 | |||||||
Borrowings | 29 | |||||||
Subsidiaries | 29 | |||||||
Office Properties | 29 | |||||||
Management | 29 | |||||||
II. | Description of Primary Market Area | 31 | ||||||
III. | Comparable Group Selection | |||||||
Introduction | 37 | |||||||
General Parameters | ||||||||
Merger/Acquisition | 38 | |||||||
Mutual Holding Companies | 38 | |||||||
Trading Exchange | 39 | |||||||
IPO Date | 39 | |||||||
Geographic Location | 40 | |||||||
Asset Size | 40 | |||||||
Balance Sheet Parameters | ||||||||
Introduction | 41 | |||||||
Cash and Investments to Assets | 42 | |||||||
Mortgage-Backed Securities to Assets | 43 | |||||||
One- to Four-Family Loans to Assets | 43 | |||||||
Total Net Loans to Assets | 43 | |||||||
Total Net Loans and Mortgage-Backed Securities to Assets | 44 | |||||||
Borrowed Funds to Assets | 44 | |||||||
Equity to Assets | 45 | |||||||
Performance Parameters | ||||||||
Introduction | 46 |
TABLE OF CONTENTS (cont.)
PAGE | ||||||||
III. | Comparable Group Selection (cont.) | |||||||
Performance Parameters (cont.) | ||||||||
Return on Average Assets | 46 | |||||||
Return on Average Equity | 47 | |||||||
Net Interest Margin | 47 | |||||||
Operating Expenses to Assets | 48 | |||||||
Noninterest Income to Assets | 48 | |||||||
Asset Quality Parameters | ||||||||
Introduction | 48 | |||||||
Nonperforming Assets to Total Assets | 49 | |||||||
Repossessed Assets to Assets | 49 | |||||||
Loan Loss Reserve to Assets | 50 | |||||||
The Comparable Group | 50 | |||||||
IV. | Analysis of Financial Performance | 51 | ||||||
V. | Market Value Adjustments | |||||||
Earnings Performance | 54 | |||||||
Market Area | 59 | |||||||
Financial Condition | 59 | |||||||
Asset, Loan and Deposit Growth | 62 | |||||||
Dividend Payments | 64 | |||||||
Subscription Interest | 64 | |||||||
Liquidity of Stock | 65 | |||||||
Management | 66 | |||||||
Marketing of the Issue | 67 | |||||||
VI. | Valuation Methods | |||||||
Introduction | 68 | |||||||
Price to Book Value Method | 69 | |||||||
Price to Core Earnings Method | 70 | |||||||
Price to Assets Method | 71 | |||||||
Valuation Conclusion | 72 |
LIST OF EXHIBITS
NUMERICAL EXHIBITS | PAGE | |||||
1 | Consolidated Balance Sheets - At December 31, 2015 and March 31, 2016 | 74 | ||||
2 | Consolidated Balance Sheets - At December 31, 2011 through 2014 | 75 | ||||
3 | Consolidated Statements of Operations for the Twelve Months Ended March 31, 2016 and for the Year Ended December 31, 2015 | 76 | ||||
4 | Consolidated Statements of Operations for the Years Ended December 31, 2011 through 2014 | 77 | ||||
5 | Selected Financial Information | 78 | ||||
6 | Income and Expense Trends | 79 | ||||
7 | Normalized Core Earnings Trend | 80 | ||||
8 | Performance Indicators | 81 | ||||
9 | Volume/Rate Analysis | 82 | ||||
10 | Yield and Cost Trends | 83 | ||||
11 | Net Portfolio Value | 84 | ||||
12 | Loan Portfolio Composition | 85 | ||||
13 | Loan Maturity Schedule | 86 | ||||
14 | Loan Originations and Purchases | 88 | ||||
15 | Delinquent Loans | 89 | ||||
16 | Nonperforming Assets | 90 | ||||
17 | Classified Assets | 91 | ||||
18 | Allowance for Loan Losses | 92 | ||||
19 | Investment Portfolio Composition | 93 | ||||
20 | Mix of Deposits | 94 | ||||
21 | Certificates of Deposit by Rate | 95 | ||||
22 | Deposit Activity | 96 | ||||
23 | Offices of Ottawa Savings Bank | 97 | ||||
24 | Management of the Bank | 98 | ||||
25 | Key Demographic Data and Trends | 99 | ||||
26 | Key Housing Data | 100 | ||||
27 | Major Sources of Employment | 101 | ||||
28 | Unemployment Rates | 102 | ||||
29 | Market Share of Deposits | 103 | ||||
30 | National Interest Rates by Quarter | 104 | ||||
31 | Share Data Prices and Pricing Ratios | 105 | ||||
32 | Key Financial Data and Ratios | 112 | ||||
33 | Recent Second Stage Conversions | 119 | ||||
34 | Acquisitions and Pending Acquisitions | 120 |
LIST OF EXHIBITS (cont.)
NUMERICAL EXHIBITS | PAGE | |||||
35 | Balance Sheets Parameters - Comparable Group Selection | 121 | ||||
36 | Operating Performance and Asset Quality Parameters - Comparable Group Selection | 125 | ||||
37 | Balance Sheet Ratios Final Comparable Group | 129 | ||||
38 | Operating Performance and Asset Quality Ratios Final Comparable Group | 130 | ||||
39 | Balance Sheet Totals - Final Comparable Group | 131 | ||||
40 | Balance Sheet - Asset Composition Most Recent Quarter | 132 | ||||
41 | Balance Sheet - Liability and Equity Most Recent Quarter | 133 | ||||
42 | Income and Expense Comparison Trailing Four Quarters | 134 | ||||
43 | Income and Expense Comparison as a Percent of Average Assets - Trailing Four Quarters | 135 | ||||
44 | Yields, Costs and Earnings Ratios Trailing Four Quarters | 136 | ||||
45 | Reserves and Supplemental Data | 137 | ||||
46 | Comparable Group Market, Pricings and Financial Ratios - Stock Prices as of May 16, 2016 | 138 | ||||
47 | Valuation Analysis and Conclusions | 139 | ||||
48 | Pro Forma Effects of Conversion Proceeds - Minimum | 140 | ||||
49 | Pro Forma Effects of Conversion Proceeds - Midpoint | 141 | ||||
50 | Pro Forma Effects of Conversion Proceeds - Maximum | 142 | ||||
51 | Summary of Valuation Premium or Discount | 143 |
ALPHABETICAL EXHIBITS | PAGE | |||||
A | Backgroundand Qualifications | 144 | ||||
B | RB 20 Certification | 148 | ||||
C | Affidavitof Independence | 149 |
CONVERSION VALUATION APPRAISAL REPORT
Prepared for:
Ottawa Bancorp, Inc.
Ottawa, Illinois
As Of:
May 16, 2016
INTRODUCTION
Keller & Company, Inc. is an independent appraisal firm for financial institutions and has prepared this Conversion Valuation Appraisal Report (“Report”) to provide the pro forma market value of the to-be-issued common stock of the new Ottawa Bancorp, Inc. (the “Corporation”), a Maryland corporation, in connection with the conversion of Ottawa Savings Bancorp, MHC from the mutual to the stock form of organization. The shares of common stock to be issued represent the majority interest in the original Ottawa Savings Bancorp, Inc., which was formed in 2005, as a mid-tier holding company, owned by Ottawa Savings Bancorp, MHC. Ottawa Savings Bank (“Ottawa Savings Bank” or the “Bank”) is a subsidiary of Ottawa Bancorp, Inc. Under the Plan of Conversion, Ottawa Savings Bancorp, MHC will cease to exist, with Ottawa Savings Bank becoming a wholly owned subsidiary of the Corporation. The existing shares of stock in Ottawa Savings Bancorp, Inc. will be exchanged for new shares of stock in the Corporation based on their current appraised value as determined in this Report.
The Application is being filed with the Office of the Comptroller of the Currency (“OCC”), the Board of Governors of the Federal Reserve System (“FRB”) and the Securities and Exchange Commission (“SEC”). In accordance with the conversion, there will be an issuance of 69.1 percent of the Corporation’s stock, representing the ownership of Ottawa Savings Bancorp, MHC, in the Corporation, along with the balance of cash held by Ottawa Savings Bancorp, MHC of $128,000, resulting in a cumulative 69.1 percent public offering based on the midpoint valuation. Such Application for Conversion has been reviewed by us, including the Prospectus and related documents, and discussed with the Bank’s management and the Bank’s conversion counsel, Kilpatrick Townsend & Stockton LLP, Washington, D.C.
This conversion appraisal was prepared based on the guidelines used by the OCC entitled “Guidelines for Appraisal Reports for the Valuation of Savings Institutions Converting from the Mutual to Stock Form of Organization,” in accordance with the OCC application requirements and the Revised Guidelines for Appraisal Reports and represents a full appraisal report. The Report provides detailed exhibits based on the Revised Guidelines and a discussion on each of the fourteen factors that need to be considered. Our valuation will be updated in accordance with the Revised Guidelines and will consider any changes in market conditions for thrift institutions.
1
Introduction (cont.)
We define the pro forma market value as the price at which the stock of the Corporation after conversion would change hands between a typical willing buyer and a typical willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, and with both parties having reasonable knowledge of relevant facts in an arm’s-length transaction. The appraisal assumes the Bank is a going concern and that the shares issued by the Corporation in the conversion are sold in noncontrol blocks.
As part of our appraisal procedure, we have reviewed the audited financial statements for the five fiscal years ended December 31, 2011 through 2015, and unaudited financials for the three months ended March 31, 2015 and 2016, and discussed them with Ottawa Savings Bank’s management and with Ottawa Savings Bank’s independent auditors, RSM US LLP, Chicago, Illinois. We have also discussed and reviewed with management other financial matters and have reviewed internal projections. We have reviewed the Corporation’s preliminary Form SB-2 and the Bank’s preliminary Form AC and discussed them with management and with the Bank’s conversion counsel.
To gain insight into the Bank’s local market condition, we have visited Ottawa Savings Bank’s market area of Ottawa, Marseilles and Morris, Illinois. We have studied the economic and demographic characteristics of the primary market area, and analyzed the Bank’s primary market area relative to Illinois and the United States. We have also examined the competitive market within which Ottawa Savings Bank operates, giving consideration to the area’s numerous financial institution offices, mortgage banking offices, and credit union offices and other key market area characteristics, both positive and negative.
We have given consideration to the market conditions for securities in general and for publicly traded thrift stocks in particular. We have examined the performance of selected publicly traded thrift institutions and compared the performance of Ottawa Savings Bank to those selected institutions.
2
Introduction (cont.)
Our valuation is not intended to represent and must not be interpreted to be a recommendation of any kind as to the desirability of purchasing the to-be-outstanding shares of common stock of the Corporation. Giving consideration to the fact that this appraisal is based on numerous factors that can change over time, we can provide no assurance that any person who purchases the stock of the Corporation in the second stage stock offering will subsequently be able to sell such shares at prices similar to the pro forma market value of the Corporation as determined in this conversion appraisal.
3
I. | DESCRIPTION OF OTTAWA SAVINGS BANK |
GENERAL
Ottawa Savings Bank (“Ottawa Savings Bank”) was organized in 1871 as a state-chartered building and loan association with the name Ottawa Building Homestead and Savings Association. The Bank converted to a federal savings and loan association in 1935 and later converted to a federal savings bank in 1996. In 2005, the Bank formed its mutual holding company, Ottawa Savings Bancorp, MHC, and its mid-tier holding company, Ottawa Bancorp, Inc., becoming the subsidiary of the Corporation and completed a minority stock offering. The Bancorp plans to complete a stock offering equal to all the shares owned by Ottawa Savings Bancorp, MHC and resulting in its elimination.
Ottawa Savings Bank conducts its business from its main office and two branches, with its main office located in Ottawa, Illinois, and it branches located in Marseilles and Morris, Illinois. The Bank also has a loan production office in Joliet, Illinois, in Will County. The Bank’s primary retail market area is focused on Ottawa, Marseilles, and Morris, while the Bank’s lending market extends into the surrounding La Salle and Grundy Counties.
Ottawa Savings Bank’s deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation (“FDIC”) in the Bank Insurance Fund (“BIF”). The Bank is also subject to certain reserve requirements of the FRB. Ottawa Savings Bank is a member of the Federal Home Loan Bank (the “FHLB”) of Chicago and is regulated by the OCC. As of March 31, 2016, Ottawa Savings Bank had assets of $216,565,143, deposits of $180,175,523 and equity of $31,040,187.
Ottawa Savings Bank has been principally engaged in the business of serving the financial needs of the public in its local communities and throughout its primary market area as a community-oriented institution. Ottawa Savings Bank has been involved in the origination of one- to four-family mortgage loans, which represented 58.9 percent of its loan originations
4
General (cont.)
during the fiscal year ended December 31, 2015. One- to four-family mortgage loan originations represented 55.2 percent of loan originations during the three months ended March 31, 2016. At March 31, 2016, 59.1 percent of the Bank’s gross loans consisted of residential real estate loans on one- to four-family dwellings, excluding home equity loans, compared to a similar 60.3 percent at December 31, 2014 with the primary sources of funds being retail deposits from residents in its local communities. The Bank is also an originator of multi-family and commercial real estate loans, construction and land loans, commercial business loans, consumer loans, and home equity loans. Consumer loans include automobile, loans on deposit accounts, and other secured and unsecured personal loans.
The Bank had cash and investments of $53.8 million, or 24.8 percent of its assets, excluding FHLB stock which totaled $1,358,121 or 0.6 percent of assets at March 31, 2016. The Bank had $29.3 million of its investments in mortgage-backed and related securities representing 13.5 percent of assets. Deposits, FHLB advances, principal payments, and equity have been the primary sources of funds for the Bank’s lending and investment activities.
The total amount of stock to be sold in the second stage stock offering will be $20.7 million or 2,073,000 shares at $10 per share based on the midpoint of the appraised value of $30.0 million and representing 69.10 percent of the total appraised value. The net conversion proceeds will be $19.2 million, reflecting conversion expenses of approximately $1,473,000. The actual cash proceeds to the Bank of $9.60 million will represent 50.0 percent of the net conversion proceeds. The ESOP will represent 8.00 percent of the public shares sold or 165,840 shares at $10 per share, representing $1,658,400. The Bank’s net proceeds will be used to fund new loans and to invest in securities following their initial deployment to short term investments. The Bank may also use the proceeds to expand services, expand operations, diversify into other businesses, or for any other purposes authorized by law. The Corporation will use its proceeds to fund the ESOP, to purchase short-and intermediate-term government or federal agency securities or to invest in short-term deposits.
5
General (cont.)
The Bank has experienced a moderate deposit increase over the past four fiscal years with deposits increasing 10.5 percent from December 31, 2011, to December 31, 2015, or an average of 2.6 percent per year, with such trend including the Bancorp’s merger/acquisition of Twin Oaks Savings Bank in December 2014. From December 31, 2015, to March 31, 2016, deposits then increased by 1.95 percent or 7.79 percent on an annualized basis, compared to a decrease of 3.0 percent in fiscal 2015.
The Bank has focused on improving its asset quality position, on monitoring its net interest margin and earnings and on maintaining a reasonable equity to assets ratio during the past four years. Equity to assets increased from 11.16 percent of assets at December 31, 2011, to 14.37 percent at December 31, 2015, impacted by the Bancorp’s merger/acquisition transaction in 2014 and then decreased slightly to 14.33 percent at March 31, 2016.
The primary lending strategy of Ottawa Savings Bank has been to focus on the origination of adjustable-rate and fixed-rate one-to four-family mortgage loans, the origination of commercial real estate loans, consumer loans and home equity loans with less emphasis on the origination of construction loans, multi-family loans, and commercial business loans.
The Bank’s share of one- to four-family mortgage loans has decreased slightly from 60.3 percent of gross loans at December 31, 2014, to 59.1 percent as of March 31, 2016. Home equity loans decreased from 11.5 percent of loans to 10.0 percent from December 31, 2014, to March 31, 2016, and commercial real estate loans decreased from 13.7 percent at December 31, 2014, to 13.6 percent at March 31, 2016. All types of real estate loans, including home equity loans, as a group decreased slightly from 88.6 percent of gross loans at December 31, 2014, to 88.1 percent at March 31, 2016. The decrease in real estate loans was offset by the Bank’s increase in consumer loans. The Bank’s share of consumer loans witnessed an increase in their share of loans from 7.1 percent at December 31, 2014, to 7.8 percent at March 31, 2016, and the Bank’s share of commercial business loans decreased from 4.3 percent to 4.2 percent, during the same time period.
6
General (cont.)
Management’s internal strategy has also included continued emphasis on maintaining an adequate and appropriate level of allowance for loan losses relative to loans and nonperforming assets in recognition of the more stringent requirements within the industry to establish and maintain an adequate level of general valuation allowances and also in recognition of the Bank’s historically higher level of nonperforming assets. At December 31, 2011, Ottawa Savings Bank had $4,747,000 in its loan loss allowance or 6.53 percent of gross loans, and 54.7 percent of nonperforming loans with the loan loss allowance decreasing to $2,192,000 and representing a lower 3.41 percent of gross loans and a lower 43.7 percent of nonperforming loans at March 31, 2016.
The basis of earnings for the Bank has been interest income from loans and investments with the net interest margin being the key determinant of net earnings with a continued emphasis on strengthening noninterest income and controlling noninterest expenses. With a primary dependence on net interest margin for earnings, current management will focus on striving to strengthen the Bank’s net interest margin without undertaking excessive credit risk combined with controlling the Bank’s interest risk position and effort to decrease real estate owned expenses and total noninterest expenses.
7
PERFORMANCE OVERVIEW
The financial position of Ottawa Savings Bank at fiscal year end December 31, 2011, through December 31, 2015, and at March 31, 2016, is shown in Exhibits 1 and 2, and the earnings performance of Ottawa Savings Bank for the twelve months ended March 31, 2016, and for the fiscal years 2011 through 2015, is shown in Exhibits 3 and 4. Exhibit 5 provides selected financial data at December 31, 2011 through 2015, and at March 31, 2016. Ottawa Savings Bank has focused on increasing its loan portfolio and deposits, increasing its cash and investment securities, and increasing its asset base from 2011 through 2015. The most recent trend for the Bank from December 31, 2015, through March 31, 2016, was a modest increase in assets, an increase in investments, a modest increase in loans and a modest increase in deposits.
With regard to the Bank’s historical financial condition, Ottawa Savings Bank has experienced a moderate decrease in assets from December 31, 2011, through December 31, 2013, with larger decreases in deposits and loans and a modest increase in the dollar level of equity. Then from 2013 to 2015, the Bank experienced increases in assets, loans, deposits and equity, influenced by its merger/acquisition transaction in 2014.
The Bank witnessed an increase in assets of $30.6 million or 16.7 percent for the period of December 31, 2011, to December 31, 2015, representing an average annual increase of 4.2 percent. For the three months ended March 31, 2016, assets increased $3.0 million or 1.4 percent, or 5.6 percent, annualized. Over the past four fiscal periods, the Bank experienced its largest dollar increase in assets of $51.1 million in fiscal year 2014, due to its merger/acquisition transaction, with a $31.8 million increase in loans and a $36.5 million increase in deposits. The Bank had decreases in assets in 2012, 2013 and 2015. During the Bank’s most recent fiscal year of 2015, assets decreased $8.2 million or 3.7 percent.
Ottawa Savings Bank’s net loan portfolio, which includes mortgage loans and nonmortgage loans, increased from $128.0 million at December 31, 2011, to $140.1 million at December 31, 2015, and represented a total increase of $12.1 million, or 9.5 percent. The average annual increase during that period was 2.4 percent. For the three months ended March 31, 2016, net loans increased $4.6 million or 3.3 percent to $144.7 million.
8
Performance Overview (cont.)
Ottawa Savings Bank has obtained funds primarily through deposits, with a small level of FHLB advances at March 31, 2016. The Bank has used FHLB advances in 2014 and 2015 but not in 2011, 2012 and 2013. The Bank’s competitive rates for deposits in its local market in conjunction with its focus on service have been the sources for competing for retail deposits. Deposits increased $16.8 million or 5.0 percent from fiscal 2011 to 2015, representing an average annual rate of increase of 1.25 percent, increasing to $176.7 million at December 31, 2015. For the three months ended March 31, 2016, deposits increased by $3.4 million or 1.9 percent. The Bank’s largest fiscal year deposit increase was in 2014, when deposits increased $36.5 million or a strong 25.0 percent, due to the Bancorp’s merger/acquisition transaction.
The Bank witnessed an increase in its dollar equity level from 2011 to 2015, with increases occurring each year. Equity also increased in dollars in the three months ended March 31, 2016. At December 31, 2011, the Bank had equity of $20.4 million, representing an 11.16 percent equity to assets ratio and increased to $30.7 million at December 31, 2015, representing a higher 14.38 percent equity to assets ratio. At March 31, 2016, equity was a slightly higher $31.0 million and a slightly lower 14.33 percent of assets.
The overall increase in the equity to assets ratio from December 31, 2011, to December 31, 2015, was the result of the Bank’s positive earnings in 2012, 2013, 2014 and 2015, combined with additional equity as a result of its merger/acquisition transaction in 2014. The dollar level of equity increased 50.5 percent from December 31, 2011, to December 31, 2015, representing an average annual increase of 12.6 percent, and then increased 1.1 percent from December 31, 2015, through March 31, 2016.
9
INCOME AND EXPENSE
Exhibit 6 presents selected operating data for Ottawa Savings Bank. This table provides key income and expense figures in dollars for the fiscal years of 2011 through 2015, and for the three months ended March 31, 2015 and 2016.
Ottawa Savings Bank witnessed a modest decrease in its dollar level of interest income from fiscal 2011 to fiscal 2015. Interest income was $8.6 million in 2011 and a lower $8.07 million in 2015. Interest income then increased slightly in the three months ended March 31, 2016, to $2.0 million or $8.08 million, annualized, compared to $8.08 million in 2015.
The Bank’s interest expense also experienced a decrease from fiscal year 2011 to 2015. Interest expense decreased from $2,570,000 in 2011 to $907,000 in 2015, representing a decrease of $1,663,000 or 64.7 percent. Interest income decreased a lesser $513,000. Such decrease in interest income from 2011 through 2015, notwithstanding the larger decrease in interest expense, resulted in a dollar increase in annual net interest income and a modest increase in net interest margin. Interest expense then decreased in the three months ended March 31, 2016, to $207,000 or $828,000, annualized, compared to $907,000 in interest expense in fiscal 2015.
The Bank has made provisions for loan losses in each of the past five fiscal years of 2011 through 2015 and also made provisions in the three months ended March 31, 2016. The amounts of those provisions were determined in recognition of the Bank’s balance of loans, level of nonperforming assets, charge-offs and level of repossessed assets. The loan loss provisions were $5,180,000 in 2011 $1,912,000 in 2012, $875,000 in 2013, $901,000 in 2014 and $270,000 in 2015, with provisions of $120,000 in the three months ended March 31, 2016. The impact of these loan loss provisions has been to provide Ottawa Savings Bank with a general valuation allowance of $2,192,000 at March 31, 2016, or 3.41 percent of gross loans and 43.7 percent of nonperforming loans.
10
Income and Expense (cont.)
Total other income or noninterest income indicated an overall increase from 2011 to 2015. Noninterest income was $758,000 or 0.41 percent of assets in 2011 and a higher $1,509,000 in fiscal year 2015 or 0.71 percent of assets, including $228,000 in gains on the sale of real estate owned. In the three months ended March 31, 2016, noninterest income was $301,000, representing 0.56 percent of assets on an annualized basis. Noninterest income consists primarily of service charges, gains on the sale of loans, gains on sale of real estate owned, servicing income and other income.
The Bank’s general and administrative expenses or noninterest expenses increased from $3,770,000 for the fiscal year of 2011 to $7,393,000 for the fiscal year ended December 31, 2015, impacted by the merger in 2014, and representing an average annual increase of 24.0 percent and then decreased to $6,480,000 for the three months ended March 31, 2016, on an annualized basis, representing a decrease of 12.3 percent. On a percent of average assets basis, operating expenses increased from 2.02 percent of average assets for the fiscal year ended December 31, 2011, to 3.39 percent for the fiscal year ended December 31, 2015, and then decreased to 3.04 percent for the three months ended March 31, 2016, annualized.
The net earnings position of Ottawa Savings Bank has indicated moderate volatility from 2011 through 2015 and in the three months ended March 31, 2016. The annual net income figures for the fiscal years of 2011, 2012, 2013, 2014 and 2015 were $(1,274,000), $674,000, $804,000 and $771,000, respectively, representing returns on average assets of (0.68) percent, 0.37 percent, 0.53 percent, 0.49 percent and 0.35 percent for fiscal years 2011, 2012, 2013, 2014 and 2015, respectively. For the three months ended March 31, 2016, earnings were $258,000, representing a return on average assets of 0.12 percent or 0.48 percent annualized.
Exhibit 7 provides the Bank’s normalized earnings or core earnings for the twelve months ended March 31, 2016. The Bank’s normalized earnings eliminate any nonrecurring income and
11
Income and Expense (cont.)
expense items. There was one income adjustment and one expense adjustment, resulting in core income being slightly lower than net income. There was a $183,000 reduction in gains on the sale of real estate owned and a $205,000 reduction in data processing expenses.
The key performance indicators comprised of selected performance ratios, asset quality ratios and capital ratios are shown in Exhibit 8 to reflect the results of performance. The Bank’s return on assets changed from (0. 68) percent in 2011 to 0.49 percent in fiscal year 2014, and then changed to 0.35 percent in 2015, with the overall higher earnings from 2011 to 2015 due to the Bank’s lower provision for loan losses. The Bank’s return on assets was 0.48 percent, annualized, in the three months ended March 31, 2016.
The Bank’s net interest rate spread increased from 3.43 percent in 2011 to 3.68 percent in 2014, then decreased to 3.55 percent in 2015 and then increased to 3.64 percent for the three months ended March 31, 2016. The Bank’s net interest margin indicated a similar trend, increasing from 3.53 percent in 2011 to 3.75 percent in 2014, then decreased to 3.62 percent in 2015 and then increased to 3.71 percent for the three months ended March 31, 2016. Ottawa Savings Bank’s net interest rate spread increased 12 basis points from 2011 to 2015, and then increased 9 basis points in the three months ended March 31, 2016. The Bank’s net interest margin followed a similar trend, increasing 9 basis points from 2011 to 2015 and then increasing 9 basis point for the three months ended March 31, 2016.
The Bank’s return on average equity increased from 2011 to 2013. The return on average equity increased from (5.97) percent in 2011, to 2.56 percent in 2015, and then increased to 3.34 percent for the three months ended March 31, 2016.
Ottawa Savings Bank’s ratio of interest-earning assets to interest-bearing liabilities increased moderately from 106.61 percent at December 31, 2011, to 111.18 percent at December 31, 2014, and then increased to 114.85 percent at December 31, 2015, and then increased to 115.61 percent at March 31, 2016. The Bank’s moderate increase in its ratio of interest-earning assets to interest-bearing liabilities is primarily the result of the Bank’s larger increase in its interest-earning assets.
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Income and Expense (cont.)
The Bank’s ratio of noninterest expenses to average assets increased from 2.02 percent in fiscal year 2011 to 2.70 percent in fiscal year 2014, then increased to 3.39 percent in fiscal year 2015 and then decreased to 3.04 percent, based on the three months ended March 31, 2016, annualized. Another key noninterest expense ratio reflecting efficiency of operation is the ratio of noninterest expenses to noninterest income plus net interest income referred to as the “efficiency ratio.” The industry norm is 60.4 percent for all thrifts and 71.61 percent for thrifts with assets of greater than $100.0 million to $1.0 billion, with the lower the ratio indicating higher efficiency. The Bank has been characterized with a modestly lower level of efficiency historically reflected in its higher efficiency ratio, which increased from 55.81 percent in 2011 to 67.56 percent in 2014, then increased to 85.17 percent in 2015 and then decreased to 76.67 percent in the three months ended March 31, 2016, due to a rise in noninterest expenses.
Earnings performance can be affected by an institution’s asset quality position. The ratio of nonperforming loans to total loans is a key indicator of asset quality. Ottawa Savings Bank witnessed a decrease in its nonperforming loans ratio from 2011 to 2015, which then decreased further in the three months ended March 31, 2016, and the ratio is currently higher than the industry norm. Nonperforming loans, by definition, consist of loans delinquent 90 days or more, troubled debt restructurings that have not been performing for at least three months, and nonaccruing loans. Ottawa Savings Bank’s nonperforming loans consisted of nonaccrual loans, with no loans 90 days or more past due and no troubled debt restructurings. The ratio of nonperforming loans to total loans was 3.41 percent at March 31, 2016, decreasing from 3.55 percent at December 31, 2015, and lower than its 6.53 percent at December 31, 2011.
Two other indicators of asset quality are the Bank’s ratios of allowance for loan losses to total loans and also to nonperforming loans. The Bank’s allowance for loan losses was 3.57 percent of loans at December 31, 2011, and decreased to 1.59 percent at December 31, 2015,
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Income and Expense (cont.)
then decreased further to 1.49 percent of loans at March 31, 2016. As a percentage of nonperforming loans, Ottawa Savings Bank’s allowance for loan losses to nonperforming loans was 54.67 percent at December 31, 2011, and a lower 38.33 percent at December 31, 2015, and increased to 43.70 percent at March 31, 2016.
Exhibit 9 provides the changes in net interest income due to rate and volume changes for the fiscal year of 2014 and 2015 and for the three months ended March 31, 2016. For the year ended December 31, 2014, net interest income increased $142,000, due to a decrease in interest income of $357,000, increased by a $499,000 decrease in interest expense. The decrease in interest income was due to a decrease due to rate of $137,000, accented by a decrease due to volume of $220,000. The decrease in interest expense was due to a $349,000 decrease due to rate, accented by a $150,000 decrease, due to volume.
For the year ended December 31, 2015, net interest income increased $1,529,000, due to an increase in interest income of $ 1,485,000 accented by a $46,000 decrease in interest expense. The increase in interest income was due to an increase due to volume of $1,780,000 reduced by a decrease due to rate of $297,000. The decrease in interest expense was due to a decrease due to rate of $196,000 reduced by an increase due to volume of $150,000.
For the three months ended March 31, 2016, net interest income decreased $6,000, due to a decrease in interest income of $39,000, reduced by a $33,000 decrease in interest expense. The decrease in interest income was due to a decrease due to volume of $75,000, reduced by an increase due to rate of $36,000. The decrease in interest expense was due to an $8,000 decrease due to rate, accented by a $25,000 decrease due to volume.
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YIELDS AND COSTS
The overview of yield and cost trends for the years ended December 31, 2013, 2014 and 2015, and for the three months ended March 31, 2015 and 2016, and at March 31, 2016, can be seen in Exhibit 10, which offers a summary of key yields on interest-earning assets and costs of interest-bearing liabilities.
Ottawa Savings Bank’s weighted average yield on its loan portfolio decreased 46 basis points from fiscal year 2013 to 2015, from 5.37 percent to 4.91 percent and then decreased to 4.90 percent for the three months ended March 31, 2016. The Bank’s weighted average yield on its loan portfolio then decreased 24 basis point to 4.66 percent at March 31, 2016. The yield on investment securities increased 21 basis points from 2.20 percent in 2013 to 2.41 percent in fiscal year 2015, and then increased 2 basis points to 2.43 percent for the three months ended March 31, 2016. The yield on other investments and interest-bearing deposits, which excludes Federal Home Loan Bank stock, increased 15 basis points from fiscal year 2013 to 2015, from 0.06 percent to 0.21 percent, and then increased to 0.44 percent for the three months ended March 31, 2016. The combined weighted average yield on all interest-earning assets decreased 29 basis points to 4.08 percent from fiscal year 2013 to 2015 and then increased 5 basis points to 4.13 percent for the three months ended March 31, 2016.
Ottawa Savings Bank’s weighted average cost of interest-bearing liabilities decreased 46 basis points to 0.53 percent from fiscal year 2013 to 2015, which was greater than the Bank’s 30 basis point decrease in yield, resulting in an increase in the Bank’s net interest rate spread of 17 basis points from 3.38 percent to 3.55 percent from 2013 to 2015. Then the Bank’s interest rate spread increased 9 basis points to 3.64 percent for the three months ended March 31, 2016. The Bank’s net interest margin increased from 3.45 percent in fiscal year 2013 to 3.62 percent in fiscal year 2015, representing an increase of 17 basis points, and then increased 9 basis points to 3.71 percent for the three months ended March 31, 2016.
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Yields and Costs (cont.)
The Bank’s ratio of average interest-earning assets to interest-bearing liabilities increased from 108.42 percent for the year ended December 31, 2013, to 115.61 percent for the three months ended March 31, 2016.
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INTEREST RATE SENSITIVITY
Ottawa Savings Bank has monitored its interest rate sensitivity position and focused on maintaining a reasonable level of interest rate risk exposure by maintaining a moderate share of adjustable-rate residential mortgage loans and adjustable-rate home equity loans, to offset its moderate share of fixed-rate residential mortgage loans. Ottawa Savings Bank recognizes the thrift industry’s historically higher interest rate risk exposure, which caused a negative impact on earnings and economic value of equity in the past as a result of significant fluctuations in interest rates, specifically rising rates in the past. Such exposure was due to the disparate rate of maturity and/or repricing of assets relative to liabilities commonly referred to as an institution’s “gap.” The larger an institution’s gap, the greater the risk (interest rate risk) of earnings loss due to a decrease in net interest margin and a decrease in economic value of equity or portfolio loss. In response to the potential impact of interest rate volatility and negative earnings impact, many institutions have taken steps to reduce their gap position. This frequently results in a decline in the institution’s net interest margin and overall earnings performance. Ottawa Savings Bank has responded to the interest rate sensitivity issue by increasing its share of adjustable-rate home equity loans and reducing its fixed-rate one- to four-family loans, multi-family loans and commercial real estate loans.
The Bank’s key measure of its interest rate risk is through the use of its net portfolio value of equity (“NPV”) of the expected cash flows from interest-earning assets and interest-bearing liabilities and any off-balance sheets contracts. The NPV for the Bank is calculated on a quarterly basis by an outside firm, showing the Bank’s NPV to asset ratio, the dollar change in NPV, and the change in the NPV ratio for the Bank under rising and falling interest rates. Such changes in NPV ratio under changing rates are reflective of the Bank’s interest rate risk exposure. The Bank also measures its interest rate risk through the use of the change in its net interest income under rising and falling interest rates.
There are numerous factors which have a measurable influence on interest rate sensitivity in addition to changing interest rates. Such key factors to consider when analyzing interest rate sensitivity include the loan payoff schedule, loan sales activity, accelerated principal payments, deposit maturities, interest rate caps on adjustable-rate mortgage loans and deposit withdrawals.
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Interest Rate Sensitivity (cont.)
Exhibit 11 provides the Bank’s NPV levels and ratios as of March 31, 2016, based on the most recent calculations and reflects the changes in the Bank’s NPV levels under rising and declining interest rates.
The Bank’s change in its NPV level at March 31, 2016, based on a rise in interest rates of 100 basis points was a 1.09 percent decrease, representing a dollar decrease in equity value of $407,000. In contrast, based on a decline in interest rates of 100 basis points, the Bank’s NPV level was estimated to decrease 2.29 percent or $(857,000) at March 31, 2016. The Bank’s exposure increases to a 4.48 percent decrease under a 200 basis point rise in rates, representing a dollar decrease in equity of $1,675,000. The Bank’s exposure is not measurable based on a 200 basis point decrease in interest rates, due to the currently low level of interest rates.
The Bank’s post shock NPV ratio based on a 200 basis point rise in interest rates is 17.75 percent and indicates a 42 basis point increase from its 17.33 percent based on no change in interest rates.
The Bank is aware of its interest rate risk exposure under rapidly rising rates and falling rates. Due to Ottawa Savings Bank’s recognition of the need to control its interest rates exposure, the Bank has recognized the importance of maintaining its share of adjustable-rate mortgage loans. The Bank plans to increase its lending activity in the future. The Bank will also continue to focus on strengthening its NPV ratio, recognizing the planned second stage stock offering will strengthen the Bank’s NPV ratio, based on any change in interest rates.
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LENDING ACTIVITIES
Ottawa Savings Bank has focused its lending activity on the origination of conventional mortgage loans secured by one- to four-family dwellings, commercial real estate loans, multi-family loans, home equity loans, commercial business loans, construction loans and consumer loans. Exhibit 12 provides a summary of Ottawa Savings Bank’s loan portfolio by loan type at December 31, 2014 and 2015, and at March 31, 2016.
The primary loan type for Ottawa Savings Bank has been residential loans secured by one- to four-family dwellings, representing a moderate 59.1 percent of the Bank’s gross loans as of March 31, 2016. This share of loans has seen a minimal decrease from 60.3 percent at December 31, 2014. The second largest real estate loan type as of March 31, 2016, was commercial real estate loans, which comprised a moderate 13.5 percent of gross loans, compared to 13.7 percent as of December 31, 2014, and represented the second largest real estate loan category in 2014. The third largest real estate loan category at March 31, 2016, was home equity lines of credit, which represented 10.0 percent of loans compared to a larger 11.5 percent at December 31, 2014. The fourth largest real estate loan category at March 31, 2016, was construction loans, which represented 2.8 percent of loans compared to a smaller 1.1 percent at December 31, 2014, and represented the fifth largest real estate loan category in 2014. These four real estate loan categories represented a strong 85.4 percent of gross loans at March 31, 2016, compared to a larger 86.6 percent of gross loans at December 31, 2014.
Commercial business loans represent a modest size loan category for Ottawa Savings Bank. Commercial business loans totaled $6.1 million and represented 4.2 percent of gross loans at March 31, 2016, compared to a larger $6.3 million or 4.3 percent of gross loans at December 31, 2014.
The combined automobile and consumer loan category was the final loan category at March 31, 2016, and represented a moderate 7.8 percent of gross loans compared to 7.1 percent at December 31, 2014. Automobile and consumer loans were the fourth largest overall loan type at March 31, 2016, and were also the fourth largest loan category at December 31, 2014. The
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Lending Activities (cont.)
Bank’s consumer loans include automobile loans, savings account loans, and secured and unsecured personal loans. The overall mix of loans has witnessed modest changes from December 31, 2014, to March 31, 2016, with the Bank having decreased its shares of one- to four-family loans and home equity lines of credit to offset its modest increases in multi-family loans, construction loans and consumer loans.
The emphasis of Ottawa Savings Bank’s lending activity is the origination of conventional mortgage loans secured by one- to four-family residences. Such residences are located primarily in LaSalle and Grundy Counties. At March 31, 2016, 69.0 percent of Ottawa Savings Bank’s gross loans consisted of loans secured by one- to four-family residential properties, including home equity lines of credit.
The Bank offers several types of adjustable-rate mortgage loans, (“ARMs”) with adjustment periods of one year, three years and five years. The interest rates on ARMs are generally indexed to the average yield on Constant Maturity Treasury indices. ARMs have a maximum rate adjustment of 1.0 percent to 2.0 percent at each adjustment period, and generally 5.0 percent for the life of the loan. Rate adjustments are computed by adding a stated margin to the index. The Bank retains all ARMs which it originates. The majority of ARMs have terms of up to 30 years, the maximum term offered, with some having terms of 15 and 20 years.
The Bank’s one- to four-family mortgage loans remain outstanding for shorter periods than their contractual terms, because borrowers have the right to refinance or prepay. These mortgage loans contain “due on sale” clauses which permit the Bank to accelerate the indebtedness of the loan upon transfer of ownership of the mortgage property.
The Bank’s other key mortgage loan product is a fixed-rate mortgage loan with Ottawa Savings Bank’s fixed-rate mortgage loans having terms of 15 years, 20 years and 30 years. These loans are primarily sold by Ottawa Savings Bank. Fixed-rate mortgage loans have a maximum term of 30 years. The Bank’s adjustable-rate and fixed-rate mortgage loans normally conform to FHLMC underwriting standards.
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Lending Activities (cont.)
The normal loan-to-value ratio for conventional mortgage loans to purchase or refinance one-to four-family dwellings generally does not normally exceed 80 percent at Ottawa Savings Bank. Ottawa Savings Bank requires private mortgage insurance for the amount in excess of the 80.0 percent loan-to-value ratio for fixed-rate loans and adjustable-rate loans. Mortgage loans originated by the Bank include due-on-sale clauses enabling the Bank to adjust rates on fixed-rate loans in the event the borrower transfers ownership.
Ottawa Savings Bank has also been an originator of commercial real estate loans and multi-family loans in the past and will continue to make multi-family and commercial real estate loans. The Bank had a total of $19.9 million in commercial real estate and $4.0 million in multi- family loans at March 31, 2016, or a combined 16.2 percent of gross loans, compared to a larger $20.0 million and $2.9 million respectively or 15.7 percent of gross loans at December 31, 2014.
The major portion of commercial real estate are secured by small retail establishments, office buildings and other owner-occupied properties used for business. Multi-family loans are secured by apartment buildings in the Bank’s local market. Multi-family and commercial real estate loans have terms of up to 25 years. The maximum loan-to-value ratio is normally 80.0 percent.
The Bank is an originator of commercial business loans, which totaled $6.1 million at March 31, 2016, and represented 4.2 percent of gross loans. Commercial business loans include secured and unsecured loans to professionals, small businesses and sole proprietorships. Commercial business loans have terms of five years or less.
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Lending Activities (cont.)
The Bank also originates home equity loans and lines of credit. The Bank had $14.6 million or 10.0 percent of gross loans in home equity lines of credit at March 31, 2016. Home equity lines to credit normally have a term of up to 25 years with an adjustable interest rate for the term of the loan and a loan-to-value ratio of no more than 80.0 percent, including the first mortgage loan. The Bank’s home equity lines of credit provide for interest only payments during the term of the loan with the principal amount due at the end of the loan term.
Ottawa Savings Bank is also an originator of consumer loans, with these loans totaling $11.5 million at March 31, 2016, and representing 7.8 percent of gross loans. Consumer loans primarily include automobile loans, share loans and secured and unsecured personal loans.
Exhibit 13 provides a loan maturity schedule and breakdown and summary of Ottawa Savings Bank’s fixed- and adjustable-rate loans, indicating a majority of fixed-rate loans. At March 31, 2016, 50.8 percent of the Bank’s loans due after March 31, 2017, were adjustable-rate and 49.2 percent were fixed-rate. At March 31, 2016 the Bank had a moderate 8.0 percent of its loans due on or before March 31, 2017, or in one year or less, with 10.7 percent due by March 31, 2021, or in one to five years. The Bank had an additional 27.5 percent of its loans with a maturity of more than 20 years.
As indicated in Exhibit 14, Ottawa Savings Bank experienced a moderate increase in its total loan originations from fiscal year 2011 to 2015, which then decreased slightly based on the three months ended March 31, 2016, annualized. Total loan originations in fiscal year 2011 were $13.1 million compared to a larger $31.2 million in fiscal year 2015, reflective of a higher level of one- to four-family loans originated, increasing from $5.7 million to $18.4 million. The increase in one- to four-family loan originations from 2011 to 2015 of $12.7 million represented 70.2 percent of the $18.1 million aggregate increase in total loan originations from 2011 to 2015, with home equity lines of credit increasing $4.7 million. Commercial real estate loans decreased $2.6 million, and construction loans decreased $225,000 from 2011 to 2015.
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Lending Activities (cont.)
In the three months ended March 31, 2016, total loan originations were $7.7 million, indicating a decrease of $1.6 million from the $9.3 million in loan originations in the three months ended March 31, 2015. One- to four-family loan originations indicated a decrease in originations of $736,000 in the three months ended March 31, 2016, compared to the three months ended March 31, 2015, and home equity lines of credit decreased $3.6 million during this period.
Loan purchases decreased $1.1 million from 2011 to 2015, based on total purchases of $3.1 million in 2011 and a lesser $2.0 million in 2015. The Bank’s only category of loan purchases in 2011 was consumer loans, which totaled $3.1 million. Loan purchases in 2015 included $2.0 million in one- to four-family mortgage loans. In the three months ended March 31, 2016, loan purchases totaled $5.0 million and consisted entirely of consumer loans.
Overall, loan originations and purchases fell short of principal payments, charge-offs, loan sales, loan repayments and other deductions in 2011, 2012, 2013 and 2015 and in the three months ended March 31, 2016, exceeded deductions. In fiscal 2011, loan originations and purchases fell short of reductions by $7.6 million and fell short of reductions by $2.4 million in 2015, and then exceeded reductions by $4.6 million in the three months ended March 31, 2016.
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NONPERFORMING ASSETS
Ottawa Savings Bank understands asset quality risk and the direct relationship of such risk to delinquent loans and nonperforming assets, including real estate owned. The quality of assets has been a key concern to financial institutions throughout many regions of the country. A number of financial institutions have been confronted with rapid increases in their levels of nonperforming assets in the past few years and were forced to recognize significant losses, setting aside major valuation allowances and being subject to much higher provision for loan losses than in 2014, 2015 and year-to-date 2016.
A sharp increase in nonperforming assets has often been related to specific regions of the country and has frequently been associated with higher risk loans, including commercial real estate loans, multi-family loans and nonowner-occupied one- to four-family loans. Ottawa Savings Bank has been faced with a modestly higher level of nonperforming assets in 2015, with nonperforming assets decreasing modestly at March 31, 2016. The Bank has also been faced with a consistently higher share of nonperforming assets.
Exhibit 15 provides a summary of Ottawa Savings Bank’s delinquent loans at December 31, 2014 and 2015, and at March 31, 2016, indicating an overall moderate decrease in delinquent loans from December 31, 2014, to March 31, 2016. The Bank had $ 1,085,000 in loans delinquent 60 to 89 days at March 31, 2016. Loans delinquent 90 days or more totaled $514,000 at March 31, 2016, with these two categories representing 1.09 percent of gross loans with almost all of them one- to four-family real estate loans. At December 31, 2014, delinquent loans of 60 to 89 days totaled $730,000 or 0.50 percent of gross loans and loans delinquent 90 days or more totaled $2,124,000 or 1.46 percent of gross loans for a combined total of $2,854,000 and a 1.96 percent share of gross loans, compared to a lower $1,599,000 and a lower 1.09 percent of gross loans at March 31, 2016.
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Nonperforming Assets (cont.)
It is a normal procedure for Ottawa Savings Bank to contact a borrower when the borrower fails to make a loan payment. When a loan is delinquent 10 days, the Bank sends a letter to the borrower, followed by a phone call after 30 days delinquency and another letter is sent. The Bank then initiates both written and oral communication with the borrower if the loan remains delinquent and sends an additional letter or notice during the period of 30 to 60 days delinquent. Under certain circumstances, the Bank may arrange for an alternative payment structure through a workout agreement. A decision as to whether and when to initiate foreclosure proceeding is based on such factors as the amount of the outstanding loan, the extent of the delinquency and the borrower’s ability and willingness to cooperate in curing the delinquency. The Bank generally initiates foreclosure when a loan has been delinquent 120 days and no workout agreement has been reached.
Exhibit 16 provides a summary of Ottawa Savings Bank’s nonperforming assets at December 31, 2011 through 2015, and at March 31, 2016. Nonperforming assets, by definition, include loans 90 days or more past due, nonaccruing loans, troubled debt restructurings that have not performed, and repossessed assets. The Bank carried a higher level of nonperforming assets at December 31, 2011, relative to December 31, 2015 and March 31, 2016. Ottawa Savings Bank’s level of nonperforming assets was $9,265,000 at December 31, 2011, and a lower $5,385,000 at December 31, 2015, which represented 5.06 percent of assets in 2011 and 2.52 percent in 2015. The Bank’s nonperforming assets included $8,647,000 in nonaccrual loans, no loans 90 days or more past due, and $582,000 in repossessed assets and real estate owned for a total of $9,265,000 in 2011, with $330,000 in real estate owned and repossessed assets, no loans 90 days or more past due, no troubled debt restructurings, and $5,055,000 in nonaccrual loans at December 31, 2015, for a total of $5,385,000. At March 31, 2016, nonperforming assets were a modestly lower $5,338,000 or 2.46 percent of assets and included no loans 90 days or more past due, $5,016,000 in nonaccrual loans, no troubled debt restructurings, and $322,000 in real estate owned and repossessed assets.
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Nonperforming Assets (cont.)
Ottawa Savings Bank’s levels of nonperforming assets were higher than its levels of classified assets at December 31, 2015, and at March 31, 2016. The Bank’s ratios of classified assets to assets, excluding special mention assets, were 5.95 percent of assets at December 31, 2011, 2.48 percent at December 31, 2015, and 2.42 percent at March 31, 2016 (reference Exhibit 17). The Bank’s classified assets consisted of $5,264,000 in substandard assets, $304,000 classified as doubtful, with no assets classified as loss at March 31, 2016, resulting in $5,568,000 in classified assets. The Bank had no assets classified as loss or doubtful at December 31, 2011, and $10,885,000 classified as substandard.
Exhibit 18 shows Ottawa Savings Bank’s allowance for loan losses at December 31, 2011 through 2015, and at March 31, 2015 and 2016, indicating the activity and the resultant balances. Ottawa Savings Bank has witnessed a moderate decrease in its balance of allowance for loan losses from $4,747,000 at December 31, 2011, to $2,192,000 at March 31, 2016, in response to its decrease in nonperforming loans. The Bank had provisions for loan losses of $5,180,000 in fiscal 2011, $1,912,000 in 2012, $875,000 in 2013, $901,000 in 2014 and $270,000 in 2015, and $165,000 in the three months ended March 31, 2015, and $120,000 in the three months ended March 31, 2016.
The Bank had total charge-offs of $5,183,000 in 2011 and $3,336,000 in 2012, $1,519,000 in 2013, $1,611,000 in 2014 and $486,000 in 2015, with total recoveries of $47,000 in 2011, $58,000 in 2012, $173,000 in 2013, $115,000 in 2014 and $125,000 in 2015. The Bank had charge-offs in the three months ended March 31, 2016, of $195,000 and recoveries of $46,000. The Bank’s ratio of allowance for loan losses to loans was 3.57 percent at December 31, 2011, and a lower 1.49 percent at March 31, 2016, due to lower charge-offs. Allowance for loan losses to nonperforming loans was 54.67 percent at December 31, 2011, and a smaller 43.70 percent at March 31, 2016.
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INVESTMENTS
The investment and securities portfolio, excluding interest-bearing deposits, has been comprised of municipal obligations, and mortgage-backed securities. Exhibit 19 provides a summary of Ottawa Savings Bank’s investment portfolio at December 31, 2013, 2014 and 2015, and at March 31, 2016, excluding FHLB stock. The exhibit also includes the Bank’s mortgage-backed securities at December 31, 2013, 2014, 2015, and at March 31, 2016. Investment securities totaled $48.4 million at March 31, 2016, based on fair value, compared to $34.5 million at December 31, 2013. The Bank had $8.4 million in municipal securities at December 31, 2013, and a larger $19.2 million at March 31, 2016, which are included in total investments.
The primary component of investment securities at March 31, 2016, was mortgage-backed securities, representing 60.5 percent of total investments, excluding FHLB stock, compared to a larger 75.6 percent at December 31, 2013. The Bank also had cash and interest-bearing deposits totaling $5.4 million at March 31, 2016, and a larger $10.2 million at December 31, 2013. The Bank had $1,358,121 in FHLB stock at March 31, 2016. The weighted average yield on investment securities was 2.43 percent for the three months ended March 31, 2016, with a 0.65 percent yield on other interest-earning assets for the three months ended March 31, 2016.
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DEPOSIT ACTIVITIES
The mix of deposits by amount at December 31, 2013, 2014 and 2015, and at March 31, 2016, is provided in Exhibit 20. There has been a moderate change in total deposits due to the merger/acquisition in 2014 and a modest change in the deposit mix during this period. Total deposits have increased from $145.8 million in December 31, 2014, to $180.2 million at March 31, 2016, representing an increase of $34.4 million or 23.6 percent. Certificates of deposit have decreased from $87.4 million at December 31, 2014, to $86.2 million at March 31, 2016, representing a decrease of $1.3 million or 1.4 percent, while interest and noninterest checking accounts, savings accounts, and MMDA accounts have increased $35.7 million from $58.2 million at December 31, 2014, to $94,0 million at March 31, 2016, or 61.1 percent, due to the merger/acquisition completion at the end of 2014.
Exhibit 21 provides a breakdown of certificates of deposits by rate as of December 31, 2014 and 2015, and at March 31, 2016. The largest category of these certificates at December 31, 2013, based on rate was certificates with a rate of less than 1.0 percent, representing 47.8 percent of certificates of deposit. At March 31, 2016, the largest category of certificates of deposit by rate was certificates with a rate of 1.00 percent to 1.99 percent, representing 54.8 percent of certificates of deposit followed by certificates with a rate of less than 1.0 percent, representing 43.6 percent of certificates of deposit.
Exhibit 22 provides deposit activity for the years ended December 31, 2013, through December 31, 2015, and for the three months ended March 31, 2015 and 2016. In 2013, Ottawa Savings Bank experienced a net decrease in deposits of $10.3 million or 5.8 percent compared to a net decrease of $5.5 million or 3.0 percent in 2015. In the three months ended March 31, 2016, Ottawa Savings Bank experienced a net increase in deposits of $3.4 million or 1.9 percent from December 31, 2015.
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BORROWINGS
Ottawa Savings Bank has not made use of FHLB advances in any of the years ended December 31, 2014 and 2015, or in the three months ended March 31, 2015 and 2016. The Bank had total FHLB advances of $1.1 million at March 31, 2016, and has not had year end balances prior to December 31, 2014.
SUBSIDIARIES
Ottawa Savings Bank had no subsidiaries at March 31, 2016.
OFFICE PROPERTIES
Ottawa Savings Bank had three offices at March 31, 2016, with its home office located in Ottawa and branches in Marseilles and Morris, Illinois (reference Exhibit 23). Ottawa Savings Bank owns the three offices. Ottawa Savings Bank also leases a loan production office in Joliet, Illinois. At March 31, 2016, the Bank’s net investment in offices, based on depreciated cost, was $6,728,000 or 3.11 percent of assets.
MANAGEMENT
Executive Officers
Mr. Jon Kranov is president and chief executive officer of Ottawa Savings Bank and has served as president of the Bank since 2010. Mr. Kranov previously served as the senior vice president and chief financial officer of Ottawa since 1996. He has a degree in accounting from Western Illinois University and an MBA from Lewis University. He has been employed with Ottawa since 1978. Mr. Marc Kingry serves the Bank as chief financial officer. Prior to joining
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MANAGEMENT (cont.)
Executive Officers (cont.)
Ottawa Savings Bank, Mr. Kingry served as senior vice president and controller of Centrue Bank since 2004. From 2002 to 2004, Mr. Kingry was the Divisional Controller at Union Financial Services & Trust Co., a subsidiary of Centrue Bank. Prior to that, Mr. Kingry worked at KPMG, LLP and at Deloitte & Touche, LLP. Mr. Craig Hepner began his banking career in 1991 and became part of the Ottawa Savings Bank team in January 2015 as a result of the merger with Twin Oaks Savings Bank. Prior to the merger, Mr. Hepner served as president and CEO of Twin Oaks as well as a member of its board of directors, positions he held since 2001. In addition to his seat on the board of directors, Mr. Hepner serves as executive vice president and chief operating officer of the Bank and Corporation.
Board of Directors
The Corporation has a nine member board of directors. Two of the nine directors are salaried officers. The insert below provides a summary of the composition of the Corporation’s board as of March 31, 2016.
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II. | DESCRIPTION OF PRIMARY MARKET AREA |
The Bank’s market area includes all of LaSalle and Grundy Counties. The Bank’s main office is located in Ottawa with a branch in Marseilles, both in LaSalle County, with another branch in Morris in Grundy County. Exhibit 25 provides economic and demographic summaries for Grundy and LaSalle Counties, Illinois and the United States.
Exhibit 25 shows the trends in population, households and income for Grundy and LaSalle Counties, Illinois and the United States. The trend for population from 2000 to 2010 indicates a strong increase in population in Grundy County of 33.4 percent and a modest increase in population in LaSalle County of 2.2 percent, while Illinois and the United States increased at rates of 3.3 percent and 9.7 percent, respectively. Grundy County is projected to increase in population through the year 2019 by 7.2 percent and LaSalle County is projected to decrease in population through the year 2017 by 0.7 percent, while Illinois and the United States are projected to increase in population at rates of 2.3 percent and 6.6 percent, respectively.
More important is the trend in households. Grundy County experienced a strong 29.8 percent increase in households from 2000 to 2010, and LaSalle County experienced a modest 4.4 percent increase in households from 2000 through 2010, compared to increases of 5.3 percent in Illinois and 10.7 percent in the United States. La Salle County is projected to decrease in households by 0.8 percent, but all other areas are projected to have increases in households from 2010 through 2019, with Grundy County increasing its number of households by a 6.7 percent and Illinois and the United States projected to have increases in households through 2019 of 2.5 percent and 6.6 percent, respectively.
LaSalle County had a 2000 per capita income level lower than both Illinois and the United States and Grundy County’s was higher than the national level but lower than the state level. Grundy County, LaSalle County, Illinois and the United States had 2000 per capita income levels of $22,591, $19,185, $23,104 and $21,587, respectively. All areas increased in per capita income from 2000 to 2010, with Grundy County increasing at a rate of 20.7 percent and LaSalle County increasing at a rate of 25.9 percent. By 2010, per capita income was $27,276, $24,156,
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Description of Primary Market Area (cont.)
$28,424 and $26,059 for LaSalle County, Illinois and the United States, respectively. In 2000, median household income in LaSalle County was $40,308, lower than both Illinois and the United States which had 2000 median household income levels of $46,590 and $41,994, respectively, by Grundy County’s median house income level was $51,719, higher than all other areas. Median household income increased from 2000 to 2010 by 20.7 percent, 24.6 percent, 18.1 percent and 19.2 percent to $62,436, $50,206, $55,010 and $50,046 in Grundy and LaSalle Counties, Illinois and the United States, respectively. All areas are also projected to increase in median household income from 2010 through 2019. Grundy and LaSalle Counties are projected to increase by 6.9 percent and 11.8 percent, respectively, while Illinois and the United States are projected to increase by 16.6 percent and 22.9 percent, respectively, to median household income levels of $66,718, $56,152, $64,135 and $61,485, respectively, from 2010 to the year 2019.
Exhibit 26 provides a summary of key housing data for the retail market area counties, Illinois and the United States. In 2000, the market area had a combined rate of owner-occupancy of 72.8 percent, Grundy County had a rate of owner-occupancy of 72.4 percent, slightly lower than LaSalle County at 73.2 percent, with Illinois and the United States at 67.3 percent and 66.2 percent, respectively. As a result, Grundy County supported a higher rate of renter-occupied housing of 27.6 percent, compared to 26.8 in LaSalle County, 32.7 percent in Illinois and 33.8 percent in the United States. In 2010, owner-occupied housing increased slightly in all the areas except the United States to 75.1 percent, 75.0 percent and 67.5 percent in Grundy County, LaSalle County and Illinois, respectively, with the United States decreasing in owner-occupied housing to 65.4 percent. Conversely, the renter-occupied rates decreased slightly in all but the United States to levels of 24.9 percent, 25.0 percent, and 32.5 percent in Grundy and LaSalle Counties and Illinois, respectively, with the United States increasing in renter-occupied housing to 34.6 percent in 2010.
The market area counties’ 2000 median housing values were: Grundy County at $128,600, LaSalle County at 87,000, Illinois at $130,800 and the United States at $119,600. The 2000 median rent value were $602 in Grundy County, which was higher than LaSalle County’s $474
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Description of Primary Market Area (cont.)
median rent, with Illinois’ median rent at $605 and the United States’ median rent at $602. In 2010, median housing values had increased in the market area counties, Illinois and the United States. The Grundy County had a 2010 median housing value of $178,800, higher than LaSalle County at $123,400, Illinois at $198,500 and the United States at $186,200. The 2010 median rent levels were $941, $688, $860 and $871 in Grundy and LaSalle Counties, Illinois and the United States, respectively.
In 2000, the major source of employment for Grundy County by industry group, based on share of employment, was the services industry at 38.5 percent. The services industry was also responsible for the majority of employment in LaSalle County, Illinois and the United States with 39.3 percent of jobs LaSalle County, 45.5 percent of jobs in Illinois and 46.7 percent in the United States (reference Exhibit 27). The manufacturing industry was the second major employer in Grundy County, LaSalle County and in Illinois at 17.7 percent, 19.2 percent and 16.0 percent, respectively, with the wholesale/retail industry the second largest employer in the United States at 15.3 percent of employment. The wholesale/retail trade group was the third major overall employer in market area, Grundy County, LaSalle County and Illinois at 13.4 percent, 17.1 percent, and 14.8 percent, respectively. The manufacturing group was the third major employer in the United States with 14.1 percent of employment. The agriculture/mining group, construction group, transportation/utilities, information and finance/insurance/real estate group combined to provide 30.4 percent of employment in Grundy County, 24.4 percent of employment in LaSalle County, 23.7 percent of employment in Illinois and 23.9 percent in the United States.
In 2010, the services industry, wholesale/retail trade industry and manufacturing industry provided the first, second and third highest levels of employment, respectively, for Grundy County, LaSalle County and Illinois, but in the United States, the services industry, manufacturing industries and wholesale/retail trade industry provided the first, second and third highest levels of employment. The services industry accounted for 46.7 percent, 46.1 percent, 51.7 percent and 51.2 percent in Grundy County, LaSalle County, Illinois and the United States,
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Description of Primary Market Area (cont.)
respectively. The wholesale/retail trade industry provided for 15.1 percent, 17.4 percent, 14.2 percent and 14.8 percent in Grundy and LaSalle Counties, Illinois and the United States, respectively. The manufacturing group provided 12.1 percent, 14.2 percent, 12.7 percent and 15.0 percent of employment in Grundy and LaSalle Counties, Illinois and the United States, respectively.
Some of the largest employers in the area are listed below.
Employer | Employees | Product/Service | ||
OSF St. Elizabeth Med. Cntr. | 730 | Health Care Services | ||
PetSmart | 500 | Pet Supply Distribution | ||
Clover Technology Group | 450 | Imaging | ||
HR Imaging | 425 | School Supplies | ||
Office Max | 375 | Call Center | ||
SABIC Innovative Plastics | 275 | Plastics | ||
Kohl’s | 270 | Retail | ||
Seattle Sutton Healthy Eating | 170 | Food Processing | ||
Mitsuboshi Belting | 168 | Mfg. Industrial Belts | ||
Pilkington Industries | 157 | Glass Mfg. |
The unemployment rate is another key economic indicator. Exhibit 28 shows the unemployment rates in LaSalle County, Grundy County, Illinois and the United States in 2012 through March of 2016. The unemployment rates in both LaSalle and Grundy Counties have been consistently higher than both state and national levels. In 2012, unemployment rates were 11.4 percent, 10.0 percent, 8.9 percent and 8.1 percent in Grundy and LaSalle Counties, Illinois and the United States, respectively. Through 2013, the unemployment rates in Grundy and LaSalle Counties and Illinois increased slightly, to 11.6 percent, 10.4 percent and 9.2 percent, respectively, while the unemployment rate in the United States decreased to 7.4 percent. The 2014 unemployment rates for Grundy County, LaSalle County, Illinois and the United States all decreased to 8.7 percent 8.1 percent, 7.1 percent and 6.2 percent, respectively. Through 2015, unemployment again decreased to 6.8 percent, 7.0 percent, 5.9 percent and 5.3 percent in Grundy County, La Salle County, Illinois and the United States, respectively. Through March of 2016,
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Description of Primary Market Area (cont.)
unemployment rates in Grundy and LaSalle Counties increased to an identical 8.3 percent, while Illinois’ unemployment remained at 5.9 percent and that of the United States decreased to 5.1 percent.
Exhibit 29 provides deposit data for banks and thrifts in Grundy and LaSalle Counties. Ottawa Savings Bank’s deposit base approximately $181.4 million or a 18.1 percent share of the $1.0 billion total thrift deposits and a small 5.0 percent share of the total deposits, which were approximately $3.6 billion as of June 30, 2015. It is evident from the size of the thrift deposits and bank deposits that the market area has a strong deposit base, with Ottawa Savings Bank having a smaller level of market penetration for both thrift deposits and total deposits.
Exhibit 30 provides interest rate data for each quarter for the years 2012 through 2015 and for the three months ended March 31, 2016. The interest rates tracked are the Prime Rate, as well as 90-Day, One-Year and Thirty-Year Treasury Bills. Short term interest rates experienced a declining trend in 2009, 2010 and 2011, a slightly rising trend in 2012, and stable in 2013, with the Thirty-Year Treasury rate rising moderately in 2013, decreasing in 2014, rising in 2015 and decreasing in the first quarter of 2016.
SUMMARY
In summary, population increased by a strong 33.4 percent in Grundy County but increased by only 2.2 percent in LaSalle County from 2000 to 2010, and the number of households increased at a strong 29.8 percent but increased by only 4.4 percent in LaSalle County. The 2010 median household income in Grundy County was higher than LaSalle County’s and state and national levels. Also, Grundy and LaSalle Counties’ unemployment rates have generally been higher than both state and national rates. According to the 2010 Census, median housing values were 178,800, $123,400, $198,500, and $186,200 for Grundy County, LaSalle County, Illinois and the United States, respectively.
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Description of Primary Market Area (cont.)
The Corporation holds deposits of approximately 18.1 percent of all thrift deposits in the two-county market area as of June 30, 2015, representing a 5.0 percent share of the total deposit base of $3.6 billion.
36
III. | COMPARABLE GROUP SELECTION |
Introduction
Integral to the valuation of the Corporation is the selection of an appropriate group of publicly traded thrift institutions, hereinafter referred to as the “comparable group.” This section identifies the comparable group and describes each parameter used in the selection of each institution in the group, resulting in a comparable group based on such specific and detailed parameters, current financials and recent trading prices. The various characteristics of the selected comparable group provide the primary basis for making the necessary adjustments to the Corporation’s pro forma value relative to the comparable group. There is also a recognition and consideration of financial comparisons with all publicly traded, FDIC-insured thrifts in the United States and all publicly traded, FDIC-insured thrifts in the Midwest region and in Illinois.
Exhibits 31 and 32 present Share Data and Pricing Ratios and Key Financial Data and Ratios, respectively, both individually and in aggregate, for the universe of 164 publicly traded, FDIC-insured thrifts in the United States (“all thrifts”), excluding mutual holding companies, used in the selection of the comparable group and other financial comparisons. Exhibits 31 and 32 also subclassify all thrifts by region, including the 52 publicly traded Midwest thrifts (“Midwest thrifts”) and the 14 publicly traded thrifts in Illinois (“Illinois thrifts”), and by trading exchange. Exhibit 31 presents prices, pricing ratios and price trends for all publicly traded FDIC-insured thrifts.
The selection of the comparable group was based on the establishment of both general and specific parameters using financial, operating and asset quality characteristics of the Corporation as determinants for defining those parameters. The determination of parameters was also based on the uniqueness of each parameter as a normal indicator of a thrift institution’s operating philosophy and perspective. The parameters established and defined are considered to be both reasonable and reflective of the Corporation’s basic operation.
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Introduction (cont.)
Inasmuch as the comparable group must consist of at least ten institutions, the parameters relating to asset size and geographic location have been expanded as necessary in order to fulfill this requirement.
GENERAL PARAMETERS
Merger/Acquisition
The comparable group will not include any institution that is in the process of a merger or acquisition as a target at May 16, 2016, due to the price impact of such a pending transaction. The following thrift institutions were potential comparable group candidates but had to be eliminated due to their involvement in a merger/acquisition.
Institution | State | |
La Porte Bancorp | Indiana | |
First Fed of Northern Michigan | Michigan |
There are no pending merger/acquisition transactions involving thrift institutions that were potential comparable group candidates in the Corporation’s city, county or market area as indicated in Exhibit 34.
Mutual Holding Companies
The comparable group will not include any mutual holding companies. The percentage of public ownership of individual mutual holding companies indicates a wide range from minimal to 49.0 percent, the largest permissible percentage, causing them to demonstrate certain
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Mutual Holding Companies (cont.)
varying individual characteristics different among themselves and from conventional, publicly-traded companies. A further reason for the elimination of mutual holding companies as potential comparable group candidates relates to the presence of a mid-tier, publicly traded holding company in some, but not all, mutual holding company structures. The presence of mid-tier holding companies can also result in inconsistent and unreliable comparisons among the relatively small universe of publicly traded mutual holding companies. As a result of the foregoing and other factors, mutual holding companies typically demonstrate higher pricing ratios that relate to their minority ownership structure and are inconsistent in their derivation with those calculated for conventionally structured, publicly traded institutions. In our opinion, it is appropriate to limit individual comparisons to institutions that are 100 percent publicly owned.
Trading | Exchange |
It is necessary that each institution in the comparable group be listed on one of the major stock exchanges, the New York Stock Exchange or the National Association of Securities Dealers Automated Quotation System (NASDAQ). Such a listing indicates that an institution’s stock has demonstrated trading activity and is responsive to normal market conditions, which are requirements for listing. Of the 164 publicly traded, FDIC-insured savings institutions, excluding mutual holding companies, 3 are traded on the New York Stock Exchange and 84 are traded on NASDAQ. There were an additional 31 are traded over the counter and 46 institutions listed in the Pink Sheets, but they were not considered for the comparable group selection.
IPO | Date |
Another general parameter for the selection of the comparable group is the initial public offering (“IPO”) date, which must be at least four quarterly periods prior to March 31, 2016, in order to insure at least four consecutive quarters of reported data as a publicly traded institution. The resulting parameter is a required IPO date prior to March 31, 2015.
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Geographic Location
The geographic location of an institution is a key parameter due to the impact of various economic and thrift industry conditions on the performance and trading prices of thrift institution stocks. Although geographic location and asset size are the two parameters that have been developed incrementally to fulfill the comparable group requirements, the geographic location parameter has nevertheless eliminated regions of the United States distant to the Corporation, including the Southwest, Southeast and West regions.
The geographic location parameter consists of the Midwest, North Central and Northeast for a total of fifteen states. To extend the geographic parameter beyond those states could result in the selection of similar thrift institutions with regard to financial conditions and operating characteristics, but with different pricing ratios due to their geographic regions. The result could then be an unrepresentative comparable group with regard to price relative to the parameters and, therefore, an inaccurate value.
Asset Size
Asset size was another key parameter used in the selection of the comparable group. The total asset size for any potential comparable group institution was $800 million or less, due to the general similarity of asset mix and operating strategies of institutions within this asset range, compared to the Corporation, with assets of approximately $217 million. Such an asset size parameter was necessary to obtain an appropriate comparable group of at least ten institutions.
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Asset Size (cont.)
In connection with asset size, we did not consider the number of offices or branches in selecting or eliminating candidates, since that characteristic is directly related to operating expenses, which are recognized as an operating performance parameter.
SUMMARY |
Exhibits 35 and 36 show the 26 institutions considered as comparable group candidates after applying the general parameters, with the outlined institutions being those ultimately selected for the comparable group using the balance sheet, performance and asset quality parameters established in this section.
BALANCE | SHEET PARAMETERS |
Introduction |
The balance sheet parameters focused on seven balance sheet ratios as determinants for selecting a comparable group, as presented in Exhibit 35. The balance sheet ratios consist of the following:
1. | Cash and investments to assets |
2. | Mortgage-backed securities to assets |
3. | One- to four-family loans to assets |
4. | Total net loans to assets |
5. | Total net loans and mortgage-backed securities to assets |
6. | Borrowed funds to assets |
7. | Equity to assets |
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Introduction (cont.)
The parameters enable the identification and elimination of thrift institutions that are distinctly and functionally different from the Corporation with regard to asset mix. The balance sheet parameters also distinguish institutions with a significantly different capital position from the Corporation. The ratio of deposits to assets was not used as a parameter as it is directly related to and affected by an institution’s equity and borrowed funds ratios, which are separate parameters.
Cash and Investments to Assets
The Bank’s ratio of cash and investments to asset, excluding mortgage-backed securities, was 11.95 percent at March 31, 2016, and reflects the Corporation’s share of cash and investments lower than the national and regional averages of 14.4 percent and 16.7 percent, respectively. The Bank’s investments have consisted entirely of municipal securities. For its three most recent fiscal years ended December 31, 2015, the Corporation’s average ratio of cash and investments to assets was a higher 12.9 percent, ranging from a high of 13.9 percent in 2014 to a low of 11.4 percent in 2013. It should be noted that, for the purposes of comparable group selection, the Corporation’s $1,358,121 balance of Federal Home Loan Bank stock at March 31, 2016, is included in the other assets category, rather than in cash and investments, in order to be consistent with reporting requirements and sources of statistical and comparative analysis related to the universe of comparable group candidates and the final comparable group.
The parameter range for cash and investments is has been defined as 25.0 percent or less of assets, with a midpoint of 12.5 percent.
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Mortgage-Backed Securities to Assets
At March 31, 2016, the Corporation’s ratio of mortgage-backed securities to assets was a higher 13.92 percent, higher than the national average of 8.12 percent and the regional average of 8.13 percent for publicly traded thrifts. The Bank’s three most recent fiscal year average is a higher 14.40 percent, also higher than industry averages, with a slightly decreasing trend.
Inasmuch as many institutions purchase mortgage-backed securities as an alternative to both lending, relative to cyclical loan demand and prevailing interest rates, and other investment vehicles, this parameter is also fairly broad at 25.0 percent or less of assets and a midpoint of 12.5 percent.
One- to Four-Family Loans to Assets
The Corporation’s lending activity is focused on the origination of residential mortgage loans secured by one- to four-family dwellings. One- to four-family loans, including construction loans and excluding home equity lines of credit, represented 41.99 percent of the Corporation’s assets at March 31, 2016, which is lower than its ratio of 42.42 percent at December 31, 2015, and higher than its 39.87 percent at December 31, 2014. The parameter for this characteristic is 55.0 percent of assets or less in one- to four-family loans with a midpoint of 27.5 percent.
Total Net Loans to Assets
At March 31, 2016, the Corporation had a 66.84 percent ratio of total net loans to assets and a slightly lower three fiscal year average of 64.92 percent, both being lower than the national average of 70.3 percent and the regional average of 67.3 percent for publicly traded thrifts. The Corporation’s ratio of total net loans to assets changed from 64.9 percent of total assets in fiscal year 2013 to 64.3 percent in 2014, and then to 65.6 percent in fiscal year 2015.
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Total Net Loans to Assets (cont.)
The parameter for the selection of the comparable group is from 50.0 percent to 90.0 percent with a midpoint of 70.0 percent. The lower end of the parameter range relates to the fact that, as the referenced national and regional averages indicate, many institutions hold greater volumes of investment securities and/or mortgage-backed securities as cyclical alternatives to lending, but may otherwise be similar to the Corporation.
Total Net Loans and Mortgage-Backed Securities to Assets
As discussed previously, the Corporation’s shares of mortgage-backed securities to assets and total net loans to assets were 13.5 percent and 66.9 percent, respectively, for a combined share of 80.4 percent. Recognizing the industry and regional ratios of 78.4 percent and 75.5 percent, respectively, the parameter range for the comparable group in this category is 60.0 percent to 90.0 percent, with a midpoint of 75.0 percent.
Borrowed Funds to Assets
The Corporation had $1.1 million in borrowed funds or 0.53 percent of assets at March 31, 2016, which is below the current industry average of 10.5 percent. The Corporation had $2.1 million in borrowed funds at December 31, 2015, $5.5 million at December 31, 2014, and none at December 31, 2013.
The use of borrowed funds by some institutions indicates an alternative to retail deposits and may provide a source of longer term funds. The federal insurance premium on deposits has
44
Borrowed Funds to Assets (cont.)
also increased the attractiveness of borrowed funds. The institutional demand for borrowed funds has decreased in recent years, due to much lower rates paid on deposits. Additionally, many thrifts are not aggressively seeking deposits, since quality lending opportunities have diminished in the current economic environment.
The parameter range of borrowed funds to assets is 20.0 percent or less with a midpoint of 10.0 percent.
Equity to Assets
The Corporation’s equity to assets ratio was 14.33 percent at March 31, 2016, 14.38 percent at December 31, 2015, 13.40 percent at December 31, 2014, and 12.59 percent at December 31, 2013, averaging 13.5 percent for the three fiscal years ended December 31, 2015. The Bank’s retained earnings increased in each of the past four fiscal years and increased at March 31, 2016, for a total 20.9 percent increase from December 31, 2011, to March 31, 2016. After conversion, based on the midpoint value of $30.0 million and a public offering of $20.7 million, with 50.0 percent of the net proceeds of the public offering going to the Bank, its equity is projected to increase within the range of 18 percent to 20 percent of assets, with the Corporation within the range of 19 percent to 21 percent of assets.
Based on those equity ratios, we have defined the equity ratio parameter to be 8.0 percent to 20.0 percent with a midpoint ratio of 14.0 percent.
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PERFORMANCE PARAMETERS
Introduction
Exhibit 36 presents five parameters identified as key indicators of the Corporation’s earnings performance and the basis for such performance both historically and during the four quarters ended March 31, 2016. The primary performance indicator is the Corporation’s core return on average assets (ROAA). The second performance indicator is the Corporation’s core return on average equity (ROAE). To measure the Corporation’s ability to generate net interest income, we have used net interest margin. The supplemental source of income for the Corporation is noninterest income, and the parameter used to measure this factor is the ratio of noninterest income to average assets. The final performance indicator is the Corporation’s ratio of operating expenses or noninterest expenses to average assets, a key factor in distinguishing different types of operations, particularly institutions that are aggressive in secondary market activities, which often results in much higher operating costs and overhead ratios.
Return on Average Assets
The key performance parameter is core ROAA. For the twelve months ended March 31, 2016, the Corporation’s core ROAA was 0.38 percent based on core earnings after taxes of $827,000, as detailed in Item I of this report. The Corporation’s ROAAs in its most recent three fiscal years of 2013 to 2015, were 0.53 percent, 0.49 percent, and 0.35 percent, respectively, with a three fiscal year average ROAA of 0.46 percent.
Considering the historical and current earnings performance of the Corporation, the range for the ROAA parameter based on core income has been defined as 1.00 percent or less with a midpoint of 0.50 percent.
46
Return on Average Equity
The ROAE has been used as a secondary parameter to eliminate any institutions with an unusually high or low ROAE that is inconsistent with the Corporation’s position. This parameter does not provide as much meaning for a newly converted thrift institution as it does for established stock institutions, due to the unseasoned nature of the capital structure of the newly converted thrift and the inability to accurately reflect a mature ROAE for the newly converted thrift relative to other stock institutions.
The Corporation’s core ROAE for the twelve months ended March 31, 2016, was 2.71 percent based on core income. In its most recent three fiscal years, the Corporation’s average ROAE was 3.52 percent, from a low of 2.56 percent in 2015 to a high of 4.38 percent in 2013.
The parameter range for ROAE for the comparable group, based on core income, is 9.0 percent or less with a midpoint of 4.5 percent.
Net Interest Margin
The Corporation had a net interest margin of 3.57 percent for the twelve months ended March 31, 2016, representing net interest income as a percentage of average interest-earning assets. The Corporation’s net interest margin levels in its three fiscal years of 2013 through 2015 were 3.45 percent, 3.72 percent and 3.61 percent, respectively, averaging 3.59 percent.
The parameter range for the selection of the comparable group is from a low of 2.75 percent to a high of 4.75 percent with a midpoint of 3.75 percent.
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Operating Expenses to Assets
For the twelve months ended March 31, 2016, the Corporation had a 3.20 percent ratio of operating expense to average assets. In its three most recent fiscal years of 2013 to 2015, the Corporation’s expense ratio averaged 2.65 percent, from a low of 2.17 percent in fiscal year 2013 to a high of 3.23 percent in fiscal year 2015.
The operating expense to assets parameter for the selection of the comparable group is from a low of 1.75 percent to a high of 4.50 percent with a midpoint of 3.13 percent.
Noninterest Income to Assets
Compared to publicly traded thrifts, the Corporation has experienced a lower than average level of noninterest income as a source of additional income. The Corporation’s ratio of noninterest income to average assets was 0.59 percent for the twelve months ended March 31, 2016. For its most recent three fiscal years ended December 31, 2013, through 2015, the Corporation’s ratio of noninterest income to average assets was 0.38 percent, 0.34 percent and 0.54 percent, respectively, for an average of 0.42 percent.
The range for this parameter for the selection of the comparable group is 1.10 percent of average assets or less, with a midpoint of 0.55 percent.
ASSET QUALITY PARAMETERS
Introduction
The final set of financial parameters used in the selection of the comparable group are asset quality parameters, also shown in Exhibit 36. The purpose of these parameters is to insure
48
Introduction (cont.)
that any thrift institution in the comparable group has an asset quality position similar to that of the Corporation. The three defined asset quality parameters are the ratios of nonperforming assets to total assets, repossessed assets to total assets and loan loss reserves to total assets at the end of the most recent period.
Nonperforming Assets to Total Assets
The Corporation’s ratio of nonperforming assets to assets was 2.46 percent at March 31, 2016, which was higher than the national average of 1.09 percent for publicly traded thrifts and the average of 1.22 percent for Midwest thrifts. The Corporation’s ratio of nonperforming assets to total assets averaged 3.06 for its most recent three fiscal years ended December 31, 2015, from a high of 3.80 percent in fiscal year 2013 to a low of 2.52 percent in fiscal year 2015.
The comparable group parameter for nonperforming assets is 3.00 percent or less of total assets, with a midpoint of 1.50 percent.
Repossessed Assets to Assets
The Corporation had repossessed assets of $319,000 at March 31, 2016, representing a ratio to total assets of 0.15 percent, following ratios of repossessed assets to total assets of 0.15 percent and 0.11 percent at December 31, 2015, and December 31, 2014, respectively. National and regional averages were 0.25 percent and 0.32 percent, respectively, for publicly traded thrift institutions.
The range for the repossessed assets to total assets parameter is 0.50 percent of assets or less with a midpoint of 0.25 percent.
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Loans Loss Reserves to Assets
The Corporation had an allowance for loan losses of $2,192,000, representing a loan loss allowance to total assets ratio of 1.01 percent at March 31, 2016, which was lower than its 1.04 percent ratio at December 31, 2015, and its 1.04 percent ratio at December 31, 2014.
The loan loss allowance to assets parameter range used for the selection of the comparable group required a minimum ratio of 0.50 percent of assets.
THE COMPARABLE GROUP
With the application of the parameters previously identified and applied, the final comparable group represents ten institutions identified in Exhibits 39, 40 and 41. The comparable group institutions range in size from $222.5 million to $761.9 million with an average asset size of $482.1 million and have an average of 10.0 offices per institution. Two of the comparable group institutions are in Ohio and two in Maryland with one each in Indiana, Kentucky, Michigan, Minnesota, Nebraska and New York, and all ten are traded on NASDAQ.
The comparable group institutions as a unit have a ratio of equity to assets of 12.04 percent, which is 2.0 percent higher than all publicly traded thrift institutions in the United States; and for the most recent four quarters indicated a core return on average assets of 0.63 percent, lower than all publicly traded thrifts at 0.87 percent and higher than the publicly traded Illinois thrifts at 0.42 percent.
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IV. | ANALYSIS OF FINANCIAL PERFORMANCE |
This section reviews and compares the financial performance of the Corporation to all publicly traded thrifts, to publicly traded thrifts in the Midwest region and to Illinois thrifts, as well as to the ten institutions constituting the Corporation’s comparable group, as selected and described in the previous section. The comparative analysis focuses on financial condition, earning performance and pertinent ratios as presented in Exhibits 40 through 45.
As presented in Exhibits 40 and 41, at March 31, 2016, the Corporation’s total equity of 14.33 percent of assets was higher than the comparable group at 12.04 percent, all thrifts at 12.01 percent, Midwest thrifts at 11.81 percent and Illinois thrifts at 11.11 percent. The Corporation had a 66.84 percent share of net loans in its asset mix, lower than the comparable group at 74.62 percent, all thrifts at 70.27 percent, Midwest thrifts at 67.39 percent and higher than Illinois thrifts at 64.39 percent. The Corporation’s lower share of net loans and 11.95 percent share of cash and investments, lower than industry averages, resulted in its higher 13.52 percent share of mortgage-backed securities. The comparable group had a higher 13.60 percent share of cash and investments and a lower 5.81 percent share of mortgage-backed securities. All thrifts had 8.12 percent of assets in mortgage-backed securities and 14.41 percent in cash and investments. The Corporation’s 83.20 percent share of deposits was higher than the comparable group, all thrifts, Midwest thrifts and similar to Illinois thrifts, reflecting the Corporation’s lower 0.53 percent of borrowed funds. As ratios to assets, the comparable group had 79.81 percent of deposits and 7.55 percent of borrowed funds. All thrifts averaged a 76.27 percent share of deposits and 10.48 percent of borrowed funds, while Midwest thrifts had a 78.45 percent share of deposits and an 8.93 percent share of borrowed funds. Illinois thrifts averaged an 83.55 percent share of deposits and a 4.65 percent share of borrowed funds. The Corporation had 0.50 percent of goodwill and intangible assets, compared to 0.58 percent for the comparable group, 0.58 percent for all thrifts, 0.53 percent for Midwest thrifts and 0.30 percent for Illinois thrifts.
Operating performance indicators are summarized in Exhibits 44, 45 and 46 and provide a synopsis of key sources of income and key expense items for the Corporation in comparison to the comparable group, all thrifts, and regional thrifts for the trailing four quarters.
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Analysis of Financial Performance (cont.)
As shown in Exhibit 46, for the twelve months ended March 31, 2016, the Corporation had a yield on average interest-earning assets lower than the comparable group and all thrifts and higher than Midwest thrifts and Illinois thrifts. The Corporation’s yield on interest-earning assets was 4.01 percent compared to the comparable group at 4.13 percent, all thrifts at 4.03 percent, Midwest thrifts at 3.91 percent and Illinois thrifts at 3.68 percent.
The Corporation’s cost of funds for the twelve months ended March 31, 2016, was lower than the comparable group, all thrifts, Midwest thrifts and Illinois thrifts. The Corporation had an average cost of interest-bearing liabilities of 0.50 percent compared to 0.82 percent for the comparable group, 0.73 percent for all thrifts, 0.66 percent for Midwest thrifts and 0.58 percent for Illinois thrifts. The Corporation’s lower yield on interest-earning assets and lower interest cost resulted in a net interest spread of 3.50 percent, which was higher than the comparable group at 3.31 percent and higher than all thrifts at 3.30 percent, Midwest thrifts at 3.24 percent and Illinois thrifts at 3.09 percent. The Corporation generated a net interest margin of 3.57 percent for the twelve months ended March 31, 2016, based on its ratio of net interest income to average interest-earning assets, which was slightly higher than the comparable group ratio of 3.46 percent. All thrifts averaged a lower 3.43 percent net interest margin for the trailing four quarters, as did Midwest thrifts at 3.35 percent; and Illinois thrifts averaged 3.17 percent.
The Corporation’s major source of earnings is interest income, as indicated by the operations ratios presented in Exhibit 45. The Corporation had $225,000 in provision for loan losses during the twelve months ended March 31, 2016, representing 0.10 percent of average assets. The average provision for loan losses for the comparable group was 0.07 percent, with all thrifts at 0.05 percent, Midwest thrifts at 0.03 percent and Illinois thrifts at 0.02 percent.
The Corporation’s total noninterest income was $1,287,000 or 0.59 percent of average assets for the twelve months ended March 31, 2016. Such a ratio of noninterest income to average assets was lower than the comparable group at 0.74 percent, and lower than all thrifts at 0.88 percent, Midwest thrifts at 0.97 percent and Illinois thrifts at 0.86 percent. For the twelve
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Analysis of Financial Performance (cont.)
months ended March 31, 2016, the Corporation’s operating expense ratio was 3.20 percent of average assets, higher than the comparable group at 3.08 percent, all thrifts at 3.04 percent, Midwest thrifts at 3.08 percent, and higher than Illinois thrifts at 3.18 percent.
The overall impact of the Corporation’s income and expense ratios is reflected in its net income and return on assets. For the twelve months ended March 31, 2016, the Corporation had a net ROAA of 0.41 percent and a lower core ROAA of 0.38 percent. For its most recent four quarters, the comparable group had a higher net ROAA of 0.67 percent and a higher core ROAA of 0.68 percent. All publicly traded thrifts averaged a higher net ROAA of 0.89 percent and 0.87 percent core ROAA, with Midwest thrifts a 0.71 percent net ROAA and a 0.72 percent core ROAA. The twelve month net ROAA for the 14 Illinois thrifts was 0.47 percent, with a core ROAA of 0.42 percent.
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V. | MARKET VALUE ADJUSTMENTS |
This is a conclusive section where adjustments are made to determine the pro forma market value or appraised value of the Corporation based on a comparison of Ottawa Savings Bank with the comparable group. These adjustments will take into consideration such key items as earnings performance, primary market area, financial condition, asset and deposit growth, dividend payments, subscription interest, liquidity of the stock to be issued, management, and market conditions or marketing of the issue. It must be noted that all of the institutions in the comparable group have their differences among themselves and relative to the Bank, and, as a result, such adjustments become necessary.
EARNINGS PERFORMANCE
In analyzing earnings performance, consideration was given to net interest income, the amount and volatility of interest income and interest expense relative to changes in market area conditions and to changes in overall interest rates, the quality of assets as it relates to the presence of problem assets which may result in adjustments to earnings, due to provisions for loan losses, the balance of current and historical nonperforming assets and real estate owned, the balance of valuation allowances to support any problem assets or nonperforming assets, the amount and volatility of noninterest income, and the amount and ratio of noninterest expenses to assets. The earnings performance analysis was based on the Bank’s respective net and core earnings for the twelve months ended March 31, 2016, with comparisons to the core earnings of the comparable group, all thrifts and other geographical subdivisions.
As discussed earlier, the Bank has experienced decreases in its assets, loans and deposits, from 2011 to 2013, with a large increase in 2014, due to its merger/acquisition of Twin Oaks Savings Bank, and then experienced modest decreases in 2015, followed by modest increases in the three months ended March 31, 2016. The Bank has focused on reducing its real estate owned, maintaining a competitive net interest margin, reducing its balance of nonperforming
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Earnings Performance (cont.)
assets; monitoring and strengthening its ratio of interest sensitive assets relative to interest sensitive liabilities, thereby maintaining its overall interest rate risk; and maintaining adequate allowances for loan losses to reduce the impact of any charge-offs. Historically, the Bank has closely monitored its yields and costs, resulting in a net interest margin, which has been generally higher than industry averages, and its 3.57 percent net interest margin for the twelve months ended March 31, 2016, was higher than the industry average of 3.43 percent and higher than the comparable group average of 3.46 percent. During its past three fiscal years, Ottawa Savings Bank’s ratio of interest expense to interest-bearing liabilities has decreased modestly from 0.97 percent in fiscal year 2013 to 0.52 percent in fiscal year 2015, which was below the industry average. The Bank’s ratio of 0.50 percent for the twelve months ended March 31, 2016, was lower than the average of 0.82 percent for the comparable group and lower than the average of 0.73 percent for all thrifts. Following the second stage offering, the Bank will strive to reduce its operating expenses, maintain its net interest margin, maintain its noninterest income, increase its net income, increase its loan portfolio, increase its return on assets, continue to reduce its balance of nonperforming and classified assets, and closely monitor its interest rate risk.
The Bank has experienced an increase in loan origination activity in mortgage and nonmortgage loans in fiscal year 2015 and with a modest decrease in the three months ended March 31, 2016, relative to the three months ended March 31, 2015. Total loan originations in fiscal year 2015 were above originations for fiscal year 2014, and the net loan change in 2014 was an increase of $31.8 million due to the merger/acquisition, compared to a decrease of $2.4 million in 2015, due primarily to higher loan sales. Gross loan originations were noticeably higher in fiscal year 2015 compared to 2014, related to higher residential, multi-family and home equity lines of credit originations with $2.0 million in loan purchases. Originations totaled $31.2 million in 2015, compared to $16.4 million in 2014, with an additional $2.0 in loan purchases in 2015, compared to $33.8 million in 2014, including $29.8 million in merger loans. For the three months ended March 31, 2016, the Bank’s loan originations were $7.7 million or $30.8 million, annualized, similar to its fiscal year 2015 and its annualized combined loan repayments, loan credits, loan sales and other items were lower than in fiscal year 2015, resulting in a net loan
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Earnings Performance (cont.)
increase of $18.5 million, annualized, including $5.0 million in loan purchases, compared to a decrease of $2.4 million in fiscal year 2015. Ottawa Savings Bank’s volume of loan originations was $16.4 million in fiscal year 2014, and $31.2 million in fiscal year 2015, plus $2.0 million in loan purchases in 2015 and $33.8 million in 2014. During the three months ended March 31, 2016, loan originations were $7.7 million or $30.8 million, annualized, with loan purchases totaling $5.0 million during the period or $20.0 million, annualized. In all periods, the predominant component of the Bank’s loan originations was one- to four-family residential mortgage loans.
From December 31, 2014, to March 31, 2016, all categories of loans had decreases in their balances, except multi-family loans, construction loans and consumer loans. One- to four- family loans indicated a dollar decrease of $929,000 or 1.1 percent, decreasing from $87.8 million to $86.9 million. Commercial real estate loans decreased by $89,000 or 0.4 percent from December 31, 2014, to March 31, 2016. Other key changes were home equity lines of credit, which decreased $2.1 million or 12.6 percent, while construction loans increased $2.5 million or 161.9 percent. Overall, the Bank’s lending activities resulted in a total loan increase of $1.4 million or 1.0 percent and a net loan increase of $2.2 million or 1.6 percent from December 31, 2014, to March 31, 2016. Loan change of a $4.5 million increase or 3.2 percent during the three months ended March 31, 2016, represents an annualized increase of $18.0 million or 12.8 percent.
For the three months ended March 31, 2016, mortgage loans represented 79.5 percent of loan originations. In comparison, during fiscal year 2015, mortgage loans represented 90.1 percent of total loan originations.
The impact of Ottawa Savings Bank’s primary lending efforts has been to generate a yield on average interest-earning assets of 4.01 percent for the twelve months ended March 31, 2016, compared to a higher 4.13 percent for the comparable group, 4.03 percent for all thrifts and 3.91
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Earnings Performance (cont.)
percent for Midwest thrifts. The Bank’s ratio of interest income to average assets was 3.67 percent for the twelve months ended March 31, 2016, lower than the comparable group at 3.89 percent, all thrifts at 3.174 percent and Midwest thrifts at 3.62 percent, reflecting the Bank’s larger share of mortgage-backed securities.
Ottawa Savings Bank’s 0.50 percent cost of interest-bearing liabilities for the twelve months ended March 31, 2016, was lower than the comparable group at 0.82 percent, all thrifts at 0.73 percent, Midwest thrifts at 0.66 percent and Illinois thrifts at 0.58 percent. The Bank’s resulting net interest spread of 3.50 percent for the twelve months ended March 31, 2016, was higher than the comparable group at 3.31 percent and higher than all thrifts at 3.30 percent, Midwest thrifts at 3.24 percent and Illinois thrifts at 3.09 percent. The Bank’s net interest margin of 3.57 percent, based on average interest-earning assets for the twelve months ended March 31, 2016, was slightly higher than the comparable group at 3.46 percent and higher than all thrifts at 3.43 percent, Midwest thrifts at 3.35 percent and Illinois thrifts at 3.17 percent.
The Bank’s ratio of noninterest income to average assets was 0.59 percent for the twelve months ended March 31, 2016, which was moderately lower than the comparable group at 0.74 percent, lower than all thrifts at 0.88 percent and Midwest thrifts at 0.97 percent.
The Bank’s operating expenses were higher than the comparable group, all thrifts and Midwest thrifts. For the twelve months ended March 31, 2016, Ottawa Savings Bank had an operating expenses to assets ratio of 3.20 percent compared to 3.08 percent for the comparable group, 3.04 percent for all thrifts and 3.08 percent for Midwest thrifts. Ottawa Savings Bank had a higher 82.8 percent efficiency ratio for the twelve months ended March 31, 2016, compared to the comparable group with an efficiency ratio of 77.4 percent. The efficiency ratio for all publicly traded thrifts was 69.1 percent for the twelve months ended March 31, 2016.
For the twelve months ended March 31, 2016, Ottawa Savings Bank generated a lower ratio of noninterest income, a higher ratio of noninterest expenses and higher net interest margin
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Earnings Performance (cont.)
relative to its comparable group. The Bank had a 0.10 percent provision for loan losses during the twelve months ended March 31, 2016, compared to the comparable group at 0.07 percent of assets, all thrifts at 0.05 percent and Midwest thrifts at 0.03 percent. The Bank’s allowance for loan losses to total loans of 1.49 percent was similar to the comparable group and higher than all thrifts. The Bank’s 41.1 percent ratio of reserves to nonperforming assets was lower than the comparable group at 105.6 percent and lower than all thrifts at 114.0 percent.
The Bank’s net and core income for the twelve months ended March 31, 2016, were lower than the comparable group. Based on net earnings, the Bank had a return on average assets of 0.41 percent for the twelve months ended March 31, 2016, and a return on average assets of 0.35 percent and 0.49 percent in fiscal years 2015 and 2014, respectively. The Bank’s core ROAA was a lower 0.38 percent. For their most recent four quarters, the comparable group had a moderately higher net ROAA of 0.67 percent and a higher core ROAA of 0.68 percent, while all thrifts indicated a higher net ROAA and higher core ROAA of 0.89 percent and 0.87 percent, respectively. Midwest thrifts indicated a net ROAA of 0.71 percent and a core ROAA of 0.72 percent.
Following its second stage conversion, Ottawa Savings Bank’s earnings will continue to be dependent on a combination of the overall trends in interest rates, the consistency, reliability and variation of its noninterest income and overhead expenses and its asset quality and its future reduced needs for provisions for loan losses.
In recognition of the foregoing earnings related factors, considering Ottawa Savings Bank’s historical and current performance measures, as well as Business Plan projections, a downward adjustment has been made to the Corporation’s pro forma market value for earnings performance.
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MARKET AREA
Ottawa Savings Bank’s primary market are for retail deposits and loans consists of Grundy and LaSalle Counties, Illinois. As discussed in Section II, population increased by a strong 33.4 percent in Grundy County but increased by only 2.2 percent in LaSalle County from 2000 to 2010, and the number of households increased at a strong 29.8 percent but increased by only 4.4 percent in LaSalle County. The 2010 median household income in Grundy County was higher than LaSalle County’s and state and national levels. Also, Grundy and LaSalle Counties’ unemployment rates have generally been higher than both state and national rates. According to the 2010 Census, median housing values were 178,800, $123,400, $198,500, and $186,200 for Grundy County, LaSalle County, Illinois and the United States, respectively.
The Corporation holds deposits of approximately 18.1 percent of all thrift deposits in the two-county market area as of June 30, 2015, representing a 5.0 percent share of the total deposit base of $3.6 billion.
In recognition of the foregoing factors, including deposit potential in a modestly growing deposit base, we believe that a modest upward adjustment is warranted for the Bank’s market area.
FINANCIAL CONDITION
The financial condition of Ottawa Savings Bank is discussed in Section I and shown in Exhibits 1, 2, 5, and 12 through 23, and is compared to the comparable group in Exhibits 39, 40 and 41. The Bank’s ratio of total equity to total assets was 14.30 percent at March 31, 2016, which was modestly higher than the comparable group at 12.04 percent, all thrifts at 12.01 percent and Midwest thrifts at 11.81 percent. Based on the second stage offering completed at the midpoint of the valuation range, the Corporation’s pro forma equity to assets ratio will increase to 20.51 percent and the Bank’s pro forma equity to assets ratio will increase to 19.50 percent.
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Financial Condition (cont.)
The Bank’s mix of assets and liabilities indicates both similarities to and variations from its comparable group. Ottawa Savings Bank had a modestly lower 66.8 percent ratio of net loans to total assets at March 31, 2016, compared to the comparable group at 74.6 percent. All thrifts indicated a higher 70.3 percent, as did Midwest thrifts at 67.4 percent. The Bank’s 12.0 percent share of cash and investments was lower than the comparable group at 13.6 percent, while all thrifts were at 14.4 percent and Midwest thrifts were at 16.7 percent. Ottawa Savings Bank’s 13.52 percent ratio of mortgage-backed securities to total assets was significantly higher than the comparable group at 5.81 percent and higher than all thrifts at 8.12 percent and Midwest thrifts at 8.13 percent.
The Bank’s 83.2 percent ratio of deposits to total assets was modestly higher than the comparable group at 79.8 percent, higher than all thrifts at 76.3 percent and higher than Midwest thrifts at 78.5 percent. Ottawa Savings Bank’s higher ratio of deposits was due to its lower 0.5 percent of borrowed funds and higher share of equity of 14.3 percent, compared to the comparable group at 12.04 percent of equity to total assets, with all thrifts at 12.01 percent and Midwest thrifts at 11.81 percent. Ottawa Savings Bank had 0.5 percent of borrowed funds at March 31, 2016, lower than the comparable group at 7.6 percent, and lower than all thrifts at 10.5 percent and Midwest thrifts at 8.9 percent. In fiscal year 2015, total deposits decreased by $5.5 million or 3.0 percent, due to conservative pricing of certificates of deposit. During fiscal year 2014, Ottawa Savings Bank’s deposits increased by $36.4 million or 25.0 percent from $145.8 million to $182.2 million due to its merger/acquisition transaction.
Ottawa Savings Bank had 0.50 percent of assets in goodwill or intangible assets and had a lower share of repossessed real estate at March 31, 2016. The Bank had repossessed real estate of $319,000 or 0.15 percent of assets at March 31, 2016. This compares to ratios of 0.58 percent for goodwill and intangible assets and 0.19 percent for real estate owned, for the comparable group. All thrifts had a goodwill and intangible assets ratio of 0.58 percent and a real estate owned ratio of 0.25 percent.
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Financial Condition (cont.)
The financial condition of Ottawa Savings Bank is impacted by its historically higher than average balance of nonperforming assets of $5.3 million or 2.46 percent of total assets at March 31, 2016, compared to a lower 1.19 percent for the comparable group, 1.09 percent for all thrifts, 1.22 percent for Midwest thrifts and 1.42 percent for Illinois thrifts. The Bank’s ratio of nonperforming assets to total assets was 5.06 percent at December 31, 2011, and 2.52 percent at December 31, 2015.
At March 31, 2016, Ottawa Savings Bank had $2,192,000 of allowances for loan losses, which represented 1.01 percent of assets and 1.49 percent of total loans. The comparable group indicated higher allowances relative to assets and similar to loans equal to 1.14 percent of assets and 1.48 percent of total loans, while all thrifts had allowances relative to assets and loans that averaged a lower 0.84 percent of assets and a lower 1.17 percent of total loans. Also of major importance is an institution’s ratio of allowances for loan losses to nonperforming assets, since a portion of nonperforming assets might eventually be charged off. Ottawa Savings Bank’s $2,192,000 of allowances for loan losses, represented a lower 41.1 percent of nonperforming assets at March 31, 2016, compared to the comparable group’s 105.6 percent, with all thrifts at a higher 114.0 percent, Midwest thrifts at a higher 95.6 percent and Illinois thrifts at a higher 92.3 percent. Ottawa Savings Bank’s ratio of net charge-offs to average total loans was 0.36 percent for the twelve months ended March 31, 2016, compared to a lower (0.06) percent for the comparable group, 0.04 percent for all thrifts and 0.05 percent for Midwest thrifts.
Ottawa Savings Bank has a modest level of interest rate risk. The change in the Bank’s NPV at March 31, 2016, reflecting the most current information available, based on a rise in interest rates of 100 basis points was a 1.1 percent decrease, representing a dollar decrease in equity value of $407,000. The Bank’s exposure increases to a 4.5 percent decrease in its NPV under a 200 basis point rise in rates, representing a dollar decrease in equity of $1,675,000. The Bank’s NPV ratio at March 31, 2016, assuming a 200 basis point rise in interest rates was 17.75 percent and indicated a 42 basis point increase from its 17.33 percent based on no change in interest rates.
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Financial Condition (cont.)
Compared to the comparable group, with particular attention to the Bank’s asset quality position, equity level, asset and liability mix and interest rate risk, we believe that, a minimal downward adjustment is warranted for Ottawa Savings Bank’s current financial condition, due to the Bank’s currently lower asset quality position.
ASSET, LOAN AND DEPOSIT GROWTH
During its most recent two fiscal years and the three months ended March 31, 2016, Ottawa Savings Bank has been characterized by increases in assets, loans and deposits relative to its comparable group. The Bank’s average annual asset change from December 31, 2013, to December 31, 2015, was an increase of 12.6 percent. This growth rate compares to a positive 2.8 percent for the comparable group, a lower 4.0 percent for all thrifts, and a lower 3.2 percent for Midwest thrifts. The Bank’s growth in assets is reflective primarily of its growth of 30.0 percent in 2014, due to its merger/acquisition transaction, reduced by a shrinkage of 3.7 percent in 2015. Ottawa Savings Bank’s loan portfolio indicates an average annual increase of 13.3 percent from December 31, 2013, to December 31, 2015, compared to average growth rates of 2.0 percent for the comparable group, 2.2 percent for all thrifts and 1.5 percent for Midwest thrifts. Such rising trends reversed for loans and deposits and continued for assets in the three months ended March 31, 2016.
Ottawa Savings Bank’s deposits indicate an average annual increase of 10.6 percent from 2013 to 2015. Annual deposit change was a 25.0 percent increase in 2014 and a negative 3.0 percent in 2015, compared to average growth rates of 2.2 percent for the comparable group, 1.5 percent for all thrifts and 1.4 percent for Midwest thrifts. During the three months ended March 31, 2016, the Bank’s total deposits decreased $2.1 million or 1.1 percent. It should be further noted that certificates of deposit, a key component of deposits, decreased by $1.3 million or 1.5 percent from December 31, 2013, to March 31, 2016. The Bank had only 0.5 percent of borrowed funds at March 31, 2016, compared to the comparable group at 7.6 percent and also had lower borrowed funds at December 31, 2013 and 2014, and none prior to December 31, 2013.
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Asset, Loan and Deposit Growth (cont.)
In spite of its deposit shrinkage historically, considering the demographics, competition and deposit base trends in its market area, the Bank’s ability to increase its asset, loan and deposit bases in the future is primarily dependent on its being able to increase its market share by competitively pricing its loan and savings products, maintaining a high quality of service to its customers and strengthening its loan origination activity. Ottawa Savings Bank’s primary market area experienced a modest increase in population and households in LaSalle County and large increases in population and households in Grundy County between 2000 and 2010. The Bank’s primary market area also indicates 2010 per capita income slightly below Illinois’ and also lower than that of the United States, and median household income level in LaSalle County was below the state level but above the national level, while the Grundy County 2010 median household income level was higher than both Illinois’ and the United States’ levels. In 2010, average median housing values in LaSalle and Grundy Counties were lower than those of Illinois and the United States, as were median rents, due to lower levels in LaSalle County.
Notwithstanding the proceeds of the planned second stage offering, the Bank’s primary focus of its operations in LaSalle and Grundy Counties will limit the Bank’s potential to modest growth in assets, loans and deposits. The total deposit base in LaSalle County grew by just 0.10 percent from June 30, 2014, to March 31, 2015, and increased by 1.60 percent in Grundy County; and during that period, the number of financial institution offices increased by one office in LaSalle County and remained the same in Grundy County. From June 30, 2014, to June 30, 2015, Ottawa Savings Bank’s deposit market share in LaSalle County increased from 5.6 percent of total deposits to 6.5 percent of total deposits.
Based on the foregoing factors, we have concluded that no adjustment to the Corporation’s pro forma value is warranted.
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DIVIDEND PAYMENTS
The Corporation paid no dividends in 2014 and 2015. The payment of cash dividends will depend upon such factors as earnings performance, financial condition, capital position, growth, and asset quality. Five of the ten institutions in the comparable group paid cash dividends during the most recent twelve months for an average dividend yield of 1.52 percent and an average payout ratio of 24.34 percent. During that twelve month period, the average dividend yield was 2.56 percent and the average payout ratio was 61.98 for the 14 Illinois thrifts; and the average dividend was 2.25 percent and the average payout ratio was 47.51 percent for all thrifts.
In our opinion, no adjustment to the pro forma market value of the Corporation is warranted related to dividend payments, recognizing that the Corporation has not paid dividends in the past but may initiate dividends in the future.
SUBSCRIPTION INTEREST
In 2015, investors’ interest in new issues has improved but is still not strong. Such interest is possibly related to the improved performance of financial institutions overall, which could be challenged in the future due to the low interest rate environment and the compression of net interest margin. The selective and conservative reaction of IPO investors appears generally to be related to a number of analytical, economic and market-related factors, including the financial performance and condition of the converting thrift institution, the strength of the local economy, housing market conditions, general market conditions for financial institution stocks and stocks overall, aftermarket price trends and the expectation of continued stronger merger/acquisition activity in the thrift industry.
Ottawa Savings Bank will direct its offering initially to depositors and residents in its market area. The board of directors and officers anticipate purchasing approximately $281,000
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Subscription Interest (cont.)
or 1.4 percent of the stock offered to the public based on the appraised midpoint valuation. The Bank will form an ESOP, which plans to purchase 8.0 percent of the total shares sold in the second stage offering.
The Bank has secured the services of Sandler O’Neill + Partners, L.P., to assist in the marketing and sale of the conversion stock, including a possible syndicated offering.
Based on the smaller size of the offering, recent banking conditions, current market conditions, historical local market interest, the terms of the offering and recent subscription levels for second stage offerings, we believe that no adjustment is warranted for the Bank’s anticipated subscription interest.
LIQUIDITY OF THE STOCK
The Corporation will offer its shares through a subscription and community offering and, if required, a subsequent syndicated offering with the assistance of Sandler O’Neill + Partners, L.P. The stock of the Corporation will be traded on the OTC Pink Sheets.
The Bank’s total public offering is smaller in size than the average market value of the comparable group. The comparable group has an average market value of $48.5 million for the stock outstanding compared to a midpoint public offering of $30.0 million for the Corporation, less the ESOP and the estimated 28,100 shares to be purchased by officers and directors. Of the ten institutions in the comparable group, all trade on Nasdaq with those ten institutions indicating an average daily trading volume of over 3,900 shares during the last four quarters.
The comparable group has an average of 4,004,294 shares outstanding compared to 3,000,000 shares outstanding for the Corporation.
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Liquidity of the Stock (cont.)
Based on the average market capitalization, shares outstanding and daily trading volume of the comparable group, we have concluded that a downward adjustment to the Corporation’s pro forma market value is warranted relative to the liquidity of its stock.
MANAGEMENT
Mr. Jon Kranov is president and chief executive officer of Ottawa Savings Bank and has served as president of the Bank since 2010. Mr. Kranov previously served as the senior vice president and chief financial officer of Ottawa since 1996. He has a degree in accounting from Western Illinois University and an MBA from Lewis University. He has been employed with Ottawa since 1978. Mr. Marc Kingry serves the Bank as chief financial officer. Prior to joining Ottawa Savings Bank, Mr. Kingry served as senior vice president and controller of Centrue Bank since 2004. From 2002 to 2004, Mr. Kingry was the Divisional Controller at Union Financial Services & Trust Co., a subsidiary of Centrue Bank. Prior to that, Mr. Kingry worked at KPMG, LLP and at Deloitte & Touche, LLP. Mr. Craig Hepner began his banking career in 1991 and became part of the Ottawa Savings Bank team in January 2015 as a result of the merger with Twin Oaks Savings Bank. Prior to the merger, Mr. Hepner served as president and CEO of Twin Oaks as well as a member of its board of directors, positions he held since 2001. In addition to his seat on the board of directors, Mr. Hepner serves as executive vice president and chief operating officer of the Bank and Corporation.
During its five most recent fiscal years, Ottawa Savings Bank has been able to maintain a competitive net interest margin, reduce its nonperforming assets and real estate owned. The Bank experienced decreases in loans, deposits and assets from 2011 to 2013, then increased noticeably in 2014 as a result of its merger/acquisition transaction and then decreased in each category in 2015 and indicated positive earnings in each year, resulting in an increase in its equity level and ratio. Ottawa Savings Bank’s interest rate risk is modest, primarily as a result of its higher share of mortgage-backed securities. The Bank’s earnings and return on assets
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Management (cont.)
decreased in 2015 and again decreased in the three months ended March 31, 2016, while its net interest margin has been above industry averages, and management is confident that the Bank is now positioned for modest loan growth and stable earnings following its second stage offering.
Overall, we believe the Bank to be professionally and knowledgeably managed, as are the comparable group institutions. It is our opinion that no adjustment to the pro forma market value of the Corporation is warranted for management.
MARKETING OF THE ISSUE
The necessity to build a new issue discount into the stock price of a second stage offering continues to be a closely examined issue in recognition of uncertainty among investors as a result of the thrift industry’s problems with delinquent loans, dependence on interest rate trends, volatility in the stock market and recent legislation related to the regulation of financial institutions and their ability to generate selected income.
We believe that a new issue discount applied to the price to book valuation approach is appropriate and necessary in this offering. In our opinion, the volatility in recent market trends cause us to conclude that a modest new issue discount is warranted in the case of this second stage offering. Consequently, at this time we have made a small downward adjustment to the Corporation’s pro forma market value related to a new issue discount.
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VI. | VALUATION METHODS |
Introduction
Historically, the most frequently used method for determining the pro forma market value of common stock for thrift institutions by this firm has been the price to book value ratio method, due to the volatility of earnings in the thrift industry. As earnings in the thrift industry decreased from 2008 to 2012, more emphasis was placed on the price to book method, particularly considering decreases in stock prices during those years. During the past two years, however, as provision for loan losses decreased significantly resulting in renewed earnings in the industry, the price to earnings method has again become pertinent and meaningful in the objective of discerning commonality and comparability among institutions. In determining the pro forma market value of this Corporation, primary emphasis has been placed on the price to book value method, with additional analytical and correlative attention to the price to earnings method and the price to assets method.
In recognition of the volatility and variance in earnings, the continued differences in asset and liability repricing and the frequent disparity in value between the price to book approach and the price to earnings approach, a third valuation method, the price to net assets method, has also been used. The price to assets method is used less often for valuing ongoing institutions, but becomes more useful in valuing converting institutions when the equity position and earnings performance of the institutions under consideration are different.
In addition to the pro forma market value, we have defined a valuation range with the minimum of the range being 85.0 percent of the pro forma market value and the maximum of the range being 115.0 percent of the pro forma market value. The pro forma market value or appraised value will also be referred to as the “midpoint value.”
In applying each of the valuation methods, consideration was given to the adjustments to the Bank’s pro forma market value discussed in Section V. Downward adjustments were made for the Bank’s financial condition, earnings, liquidity of the stock and marketing of the issue.
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Introduction (cont.)
No adjustments were made for the Bank’s asset, loan and deposit growth, dividend payments, subscription interest and management. A modest upward adjustment was made for market area.
PRICE TO BOOK VALUE METHOD
In the valuation of thrift institutions, the price to book value method focuses on an institution’s financial condition, and does not give as much consideration to the institution’s long term performance and value as measured by earnings. Due to the earnings volatility of many thrift stocks, the price to book value method is frequently used by investors who rely on an institution’s financial condition rather than earnings performance. Although this method is, under certain circumstances, considered somewhat less meaningful for institutions that provide a consistent earnings trend, it remains significant and reliable when an institution’s performance or general economic conditions are experiencing volatile or uncustomary trends related to internal or external factors, and serves as a complementary and correlative analysis to the price to earnings and price to assets approaches.
Exhibit 47 shows the average and median price to book value ratios for the comparable group which were 86.04 percent and 90.45 percent, respectively. The full comparable group indicated a moderate pricing range, from a low of 56.36 percent (Central Federal Corp.) to a high of 108.91 percent (United Community Bancorp). The comparable group had higher average and median price to tangible book value ratios of 91.78 percent and 94.80 percent, respectively, with a range of 56.60 percent to 115.36 percent. Excluding the low and the high in the group, the comparable group’s price to book value range narrowed to a low of 67.33 percent and a high of 100.96 percent, and the comparable group’s price to tangible book value range also narrowed moderately from a low of 68.12 percent to a higher of 104.84 percent.
Considering the foregoing factors in conjunction with the adjustments made in Section V, we have determined a fully converted pro forma price to book value ratio of 62.5 8 percent and
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Price to Book Value Method (cont.)
a price to tangible book value ratio of 64.02 percent at the midpoint. The price to book value ratio increases from 56.37 percent at the minimum to 68.12 percent at the maximum, while the price to tangible book value ratio increases from 57.74 percent at the minimum to 69.59 percent at the maximum.
The Corporation’s pro forma price to book value and price to tangible book value ratios of 62.58 percent and 64.02 percent, respectively, as calculated using the prescribed formulary computation indicated in Exhibit 46, are influenced by the Bank’s capitalization, asset quality position, earnings performance, local market and public ownership, as well as subscription interest in thrift stocks and overall market and economic conditions. The Corporation’s ratio of equity to assets after conversion at the midpoint of the valuation range will be approximately 20.60 percent compared to 12.04 percent for the comparable group. Based on the price to book value ratio and the Bank’s total equity of $31,040,187 at March 31, 2016, the indicated pro forma market value of the Corporation using this approach is $30,000,000 at the midpoint (reference Exhibit 46).
PRICE TO CORE EARNINGS METHOD
The foundation of the price to core earnings method is the determination of the core earnings based to be used, followed by the calculation of an appropriate price to core earnings multiple. The Corporation’s after tax core earnings for the twelve months ended March 31, 2016, was $827,000 (reference Exhibit 7) and its net earnings was $886,000 for that period. To opine the pro forma market value of the Corporation using the price to core earnings method, we applied the core earnings base of $827,000.
In determining the fully converted price to core earnings multiple, we reviewed the ranges of the price to core earnings and the price to net earnings multiples for the comparable group and all publicly traded thrifts. As indicated in Exhibit 46, the average price to core earnings multiple
70
Price to Core Earnings Method (cont.)
for the comparable group was 16.64, while the median was a higher 17.39. The average price to net earnings multiple was 16.90, and the median multiple was 17.46. The range of the price to core earnings multiple for the comparable group was from a low of 6.85 (Central Federal Corp.) to a high of 27.58 (Bay Bancorp). The range in the price to core earnings multiple for the comparable group, excluding the high and the low ranges, was from a low multiple of 12.23 to a high of 19.67 times earnings for eight of the ten institutions in the group, indicating a moderate narrowing of the range.
Consideration was given to the adjustments to the Corporation’s pro forma market value discussed in Section V. In recognition of those adjustments, we have determined a fully converted price to core earnings multiple of 43.31 at the midpoint, based on the Corporation’s core earnings of $827,000 for the twelve months ended March 31, 2016. The Corporation’s fully converted core earnings multiple of 43.31 is higher than its net earnings multiple, which was 39.74 times earnings.
PRICE TO ASSETS METHOD
The final valuation method is the price to assets method. This method is not frequently used, since the calculation incorporates neither an institution’s equity position nor its earnings base. Additionally, the prescribed formulary computation of value using the pro forma price to net assets method does not recognize the runoff of deposits concurrently allocated to the purchase of conversion stock, returning a pro forma price to net assets ratio below its true level following conversion.
Exhibit 46 indicates that the average price to assets ratio for the comparable group was 10.41 percent and the median was 10.07 percent. The range in the price to assets ratios for the comparable group varied from a low of 6.13 percent (Central Federal Corp.) to a high of 14.31 percent (Poage Bankshares). The range narrows slightly with the elimination of the two extremes in the group to a low of 7.64 percent and a high of 13.46 percent.
71
Price to Assets Method (cont.)
Consistent with the previously noted adjustments, it is our opinion that an appropriate price to assets ratio for the Corporation is 12.84 percent at the midpoint, which ranges from a low of 11.05 percent at the minimum to 14.60 percent at the maximum. Based on the Bank’s March 31, 2016, asset base of $216,565,000, the indicated pro forma market value of the Corporation using the price to assets method is $30,000,000 at the midpoint (reference Exhibit 47).
VALUATION CONCLUSION
Exhibit 52 provides a summary of the valuation premium or discount for each of the valuation ranges when compared to the comparable group based on each of the fully converted valuation approaches. At the midpoint value, the price to book value ratio of 62.58 percent for the Corporation represents a discount of 27.27 percent relative to the comparable group and decreases to a discount of 20.83 percent at the maximum. The price to assets ratio of 12.84 percent at the midpoint represents a premium of 23.34 percent, increasing to 40.25 percent at the maximum.
It is our opinion that as of May 16, 2016, the pro forma market value of the Corporation is $30,000,000 at the midpoint, representing 3,000,000 shares at $10.00 per share. The pro forma valuation range of the Corporation is from a minimum of $25,500,000 or 2,500,000 shares at $10.00 per share to a maximum of $34,500,000 or 3,450,000 shares at $10.00 per share, with such range being defined as 15 percent below the appraised value to 15 percent above the appraised value.
72
Valuation Conclusion (cont.)
Our valuation assumptions, process and conclusions recognize that minority public shareholders collectively own 30.90 percent of the Bank’s outstanding shares, and that the current offering contemplates the sale of the 60.10 percent of the outstanding shares currently owned by Ottawa Savings Bancorp, MHC, combined with the $128,000 in cash held by Ottawa Savings Bancorp, MHC. At the conclusion of the stock offering, the Corporation will own all the common stock of Ottawa Savings Bank in conjunction with the completion of the second stage offering. As indicated in Exhibit 48, in the second stage conversion, each minority share will be exchanged for 1.0366 shares of the Corporation at the midpoint of the offering range, with that exchange ratio being 0.8811 shares and 1.1921 shares at the minimum and the maximum of the offering range, respectively.
The appraised value of Ottawa Bancorp, Inc. as of May 16, 2016, is $30,000,000 at the midpoint.
73
EXHIBITS
NUMERICAL
EXHIBITS
EXHIBIT 1
OTTAWA BANCORP, INC. & SUBSIDIARY
Ottawa, Illinois
Consolidated Balance Sheet
At March 31, 2016 and December 31, 2015
March 31, 2016 | December 31, 2015 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 2,524,974 | $ | 2,096,966 | ||||
Interest-bearing deposits | 1,635,668 | 5,038,753 | ||||||
|
|
|
| |||||
Total cash and cash equivalents | 4,160,642 | 7,135,719 | ||||||
Time deposits | 250,000 | 250,000 | ||||||
Federal funds sold | 949,000 | 1,604,000 | ||||||
Securities available-for-sale | 48,444,907 | 46,984,907 | ||||||
Nonmarketable equity securities | 1,358,121 | 1,358,121 | ||||||
Loans, net of allowance for loan losses of $2,191,844 and $2,224,006 at March 31, 2016 and December 31, 2015, respectively | 144,743,430 | 140,110,201 | ||||||
Loans held-for-sale | 100,000 | — | ||||||
Premises and equipment, net | 7,005,512 | 7,058,047 | ||||||
Accrued interest receivable | 801,846 | 775,641 | ||||||
Foreclosed real estate | 318,670 | 313,368 | ||||||
Deferred tax asset | 2,552,190 | 2,725,354 | ||||||
Cash value of life insurance | 2,207,596 | 2,195,424 | ||||||
Goodwill | 649,869 | 649,869 | ||||||
Core deposit intangible | 428,000 | 451,000 | ||||||
Other assets | 2,595,360 | 1,951,700 | ||||||
|
|
|
| |||||
Total assets | $ | 216,565,143 | $ | 213,563,351 | ||||
|
|
|
| |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
LIABILITIES | ||||||||
Deposits | ||||||||
Noninterest-bearing | $ | 11,084,694 | $ | 10,325,832 | ||||
Interest-bearing | 169,090,829 | 166,409,076 | ||||||
|
|
|
| |||||
Total deposits | 180,175,523 | 176,734,908 | ||||||
Accrued interest payable | 1,902 | 394 | ||||||
FHLB advances | 1,138,422 | 2,139,117 | ||||||
Other liabilities | 3,786,854 | 3,600,655 | ||||||
|
|
|
| |||||
Total liabilities | 185,102,701 | 182,475,074 | ||||||
Redeemable common stock in ESOP plan | 422,255 | 376,543 | ||||||
|
|
|
| |||||
STOCKHOLDERS’ EQUITY | ||||||||
Common stock, $0.1 par value, 12,000,000 shares authorized; 3,001,055 shares issued | 30,010 | 30,010 | ||||||
Additional paid-in-capital | 15,847,200 | 15,845,341 | ||||||
Retained earnings | 16,453,280 | 16,194,374 | ||||||
Unallocated ESOP shares | (190,785 | ) | (203,504 | ) | ||||
Unearned management recognition plan shares | (2,649 | ) | (3,751 | ) | ||||
Accumulated other comprehensive (loss) | 537,504 | 437,925 | ||||||
|
|
|
| |||||
32,674,560 | 32,300,395 | |||||||
Less: Treasury shares at cost, 106,932 shares | (1,212,118 | ) | (1,212,118 | ) | ||||
Maximum cash obligation related to ESOP shares | (422,255 | ) | (376,543 | ) | ||||
|
|
|
| |||||
Total stockholders’ equity | 31,040,187 | 30,711,734 | ||||||
|
|
|
| |||||
Total liabilities and stockholders’ equity | $ | 216,565,143 | $ | 213,563,351 | ||||
|
|
|
|
Source: Ottawa Bancorp, Inc. & Subsidiary’s unaudited and audited financial statements
74
EXHIBIT 2
OTTAWA BANCORP, INC. & SUBSIDIARY
Ottawa, Illinois
Consolidated Balance Sheets
December 31, 2011, 2012, 2013 and 2014
At December 31, | ||||||||||||||||
2014 | 2013 | 2012 | 2011 | |||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks | $ | 2,053,117 | $ | 2,174,979 | $ | 1,439,637 | $ | 1,664,957 | ||||||||
Interest-bearing demand deposits | 3,140,118 | 4,430,861 | 9,348,352 | 1,280,508 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total cash and cash equivalents | 5,193,235 | 6,605,840 | 10,787,989 | 2,945,465 | ||||||||||||
Time deposits | 854,861 | — | — | — | ||||||||||||
Federal funds sold | 1,662,000 | 3,630,000 | 1,666,000 | 1,627,000 | ||||||||||||
Securities held-to-maturity (fair value of $12 and $16 at December 31, 2012 and 2011, respectively) | — | — | 12 | 15 | ||||||||||||
Securities available-for-sale | 52,772,108 | 34,547,080 | 28,863,603 | 33,006,945 | ||||||||||||
Nonmarketable equity securities | 1,780,674 | 1,233,536 | 1,334,436 | 2,534,952 | ||||||||||||
Loans, net of allowance for loan losses of $2,314,607, $2,910,580, $3,381,441 and $4,747,412 at December 31, 2014, 2013, 2012 and 2011, respectively | 142,501,513 | 110,672,618 | 121,994,851 | 127,971,762 | ||||||||||||
Loans held-for-sale | — | — | 171,095 | — | ||||||||||||
Premises and equipment, net | 7,040,228 | 6,451,409 | 6,629,794 | 6,801,376 | ||||||||||||
Accrued interest receivable | 881,612 | 652,693 | 696,638 | 691,367 | ||||||||||||
Foreclosed real estate | 232,650 | 584,786 | 1,297,214 | 542,160 | ||||||||||||
Deferred tax asset | 3,055,068 | 2,450,072 | 2,243,663 | 2,690,622 | ||||||||||||
Cash value of life insurance | 2,148,043 | 2,096,181 | 1,587,436 | 1,557,106 | ||||||||||||
Prepaid FDIC premiums | — | 163,999 | 394,797 | |||||||||||||
Income tax refunds receivable | (48,000 | ) | — | 166,590 | 738,658 | |||||||||||
Goodwill | 649,869 | — | — | — | ||||||||||||
Core deposit intangible | 567,000 | — | — | — | ||||||||||||
Other assets | 2,434,030 | 1,686,107 | 1,442,841 | 1,447,980 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | $ | 221,724,891 | $ | 170,610,322 | $ | 179,046,161 | $ | 182,950,205 | ||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||||||||||
LIABILITIES | ||||||||||||||||
Deposits: | ||||||||||||||||
Noninterest-bearing | $ | 8,198,356 | $ | 5,219,028 | $ | 4,313,635 | $ | 4,038,837 | ||||||||
Interest-bearing | 174,034,663 | 140,549,623 | 150,761,010 | 155,909,613 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total deposits | 182,233,019 | 145,768,651 | 155,074,645 | 159,948,450 | ||||||||||||
Accrued interest payable | 369 | 582 | 806 | 1,908 | ||||||||||||
FHLB advances | 5,483,036 | — | — | — | ||||||||||||
Other liabilities | 3,876,053 | 3,035,707 | 2,686,620 | 2,477,372 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 191,592,477 | 148,804,940 | 157,762,071 | 162,427,730 | ||||||||||||
Redeemable common stock held by ESOP plan | 424,730 | 319,090 | 237,712 | 109,818 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||
Common stock, $.01 par value 12,000,000 shares authorized; 2,224,911 shares issued | 30,010 | 22,249 | 22,249 | 22,249 | ||||||||||||
Additional paid-in capital | 15,830,623 | 8,706,921 | 8,705,547 | 8,715,905 | ||||||||||||
Retained earnings | 15,423,412 | 14,619,095 | 13,689,967 | 13,015,777 | ||||||||||||
Unallocated ESOP shares | (254,380 | ) | (305,256 | ) | (356,132 | ) | (407,008 | ) | ||||||||
Unearned MRP shares | (12,388 | ) | (21,024 | ) | (33,977 | ) | (41,119 | ) | ||||||||
Accumulated other comprehensive income (loss) | 327,255 | (4,485 | ) | 468,554 | 428,789 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
31,344,532 | 23,017,500 | 22,496,208 | 21,734,593 | |||||||||||||
Less: | ||||||||||||||||
Treasury shares at cost, 106,932 shares | (1,212,118 | ) | (1,212,118 | ) | (1,212,118 | ) | (1,212,118 | ) | ||||||||
Maximum cash obligation related to ESOP shares | (424,730 | ) | (319,090 | ) | (237,712 | ) | (109,818 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total stockholders’ equity | 29,707,684 | 21,486,292 | 21,046,378 | 20,412,657 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 221,724,891 | $ | 170,610,322 | $ | 179,046,161 | $ | 182,950,205 | ||||||||
|
|
|
|
|
|
|
|
Source: Ottawa Bancorp, Inc. & Subsidiary’s audited financial statements
75
EXHIBIT 3
OTTAWA BANCORP, INC. & SUBSIDIARY
Ottawa, Illinois
Consolidated Statements of Operations
For the Twelve Months Ended March 31, 2016 and the Year Ended December 31, 2015
Twelve Months Ended March 31, 2016 | Year Ended December 31, 2015 | |||||||
Interest and dividend income: | ||||||||
Interest and fees on loans | $ | 6,816,812 | $ | 6,857,098 | ||||
Securities: | ||||||||
Residential mortgage-backed and related securities | 625,458 | 630,654 | ||||||
State and municipal securities | 560,515 | 567,562 | ||||||
Dividends on nonmarketable equity securities | 9,250 | 8,436 | ||||||
Interest-bearing deposits | 16,486 | 14,494 | ||||||
|
|
|
| |||||
Total interest and dividend income | 8,028,521 | 8,078,244 | ||||||
Interest expense: | ||||||||
Deposits | 843,030 | 864,815 | ||||||
Borrowings | 30,988 | 42,236 | ||||||
|
|
|
| |||||
Total interest expense | 874,018 | 907,051 | ||||||
Net interest income | 7,154,503 | 7,171,193 | ||||||
Provision for loan losses | 225,178 | 270,178 | ||||||
|
|
|
| |||||
Net interest income after provision for loan losses | 6,929,325 | 6,901,015 | ||||||
|
|
|
| |||||
Other income: | ||||||||
Gain on sale of securities | 15,941 | 37,475 | ||||||
Gain on sale of loans | 227,659 | 227,337 | ||||||
Gain on sale of OREO | 287,613 | 227,907 | ||||||
Gain on sale of repossessed assets | 11,282 | 10,650 | ||||||
Loan origination and servicing income | 58,622 | 324,000 | ||||||
Origination of mortgage servicing rights, net of amortization | 16,238 | 14,108 | ||||||
Customer service fees | 452,437 | 448,963 | ||||||
Income on bank-owned life insurance | 47,369 | 47,381 | ||||||
Other | 169,870 | 171,470 | ||||||
|
|
|
| |||||
Total other income | 1,287,031 | 1,509,291 | ||||||
|
|
|
| |||||
Other expenses: | ||||||||
Salaries and employee benefits | 3,198,772 | 3,082,430 | ||||||
Directors fees | 166,016 | 163,016 | ||||||
Occupancy | 654,873 | 656,560 | ||||||
Deposit insurance premium | 178,733 | 179,417 | ||||||
Legal and professional services | 337,119 | 353,651 | ||||||
Data processing | 1,183,213 | 1,423,119 | ||||||
Loss on sale of securities | 31,110 | 33,149 | ||||||
Valuation adjustments and expenses on foreclosed real estate | 188,154 | 171,739 | ||||||
Loss on sale of OREO | 23,176 | 23,176 | ||||||
Loss on sale of repossessed assets | 5,931 | 15,814 | ||||||
Other | 1,018,579 | 1,291,468 | ||||||
|
|
|
| |||||
Total other expenses | $ | 6,985,676 | $ | 7,393,539 | ||||
|
|
|
| |||||
Income before income tax expense | 1,230,680 | 1,016,767 | ||||||
Income tax expense | 344,476 | 245,805 | ||||||
|
|
|
| |||||
Net income | $ | 886,204 | $ | 770,962 | ||||
|
|
|
|
Source: Ottawa Bancorp, Inc.’s unaudited and audited financial statements
76
EXHIBIT 4
OTTAWA BANCORP, INC. & SUBSIDIARY
Ottawa, Illinois
Consolidated Statements of Operations
Years Ended December 31, 2011, 2012, 2013 and 2014
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | 2011 | |||||||||||||
Interest and dividend income: | ||||||||||||||||
Interest and fees on loans | $ | 5,734,079 | $ | 6,205,611 | $ | 7,028,299 | $ | 7,503,210 | ||||||||
Securities | ||||||||||||||||
Residential mortgage-backed and related securities | 526,915 | — | — | — | ||||||||||||
Mortgage-backed and related securities | — | 469,265 | 633,118 | 903,674 | ||||||||||||
U.S. agency securities | — | — | 38,297 | 84,166 | ||||||||||||
State and municipal securities | 286,878 | 266,135 | 210,311 | 69,472 | ||||||||||||
Dividends on nonmarketable equity securities | 6,590 | 5,751 | 5,418 | 2,914 | ||||||||||||
Interest-bearing deposits | 2,624 | 5,460 | 3,792 | 3,495 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total interest and dividend income | 6,557,086 | 6,952,222 | 7,919,235 | 8,566,931 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 951,320 | 1,451,959 | 2,169,642 | 2,569,586 | ||||||||||||
Borrowings | 1,259 | — | 1 | 272 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total interest expense | 952,579 | 1,451,959 | 2,169,643 | 2,569,858 | ||||||||||||
Net interest income | 5,604,507 | 5,500,263 | 5,749,592 | 5,997,073 | ||||||||||||
Provision for loan loss | 901,000 | 875,000 | 1,912,000 | 5,180,040 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net interest income after provision for loan loss | 4,703,507 | 4,625,263 | 3,837,592 | 817,033 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Other income: | ||||||||||||||||
Gain (loss) on sale of securities | 42,054 | — | 13,948 | 276,474 | ||||||||||||
Gain on sale of loans | 55,837 | 66,229 | 109,059 | 9,345 | ||||||||||||
Gain (loss) on sale of OREO | 84,208 | — | 86,984 | 15,802 | ||||||||||||
Gain on sale of repossessed assets | 17,379 | — | — | — | ||||||||||||
Origination of mortgage servicing rights, net of amortization | — | — | (1,307 | ) | (29,184 | ) | ||||||||||
Customer service fees | 304,117 | 299,148 | 289,815 | 297,055 | ||||||||||||
Income on bank-owned life insurance | 51,862 | 8,745 | 30,330 | 33,416 | ||||||||||||
Other | 115,108 | 285,044 | 113,532 | 154,614 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total other income | 670,565 | 659,166 | 642,361 | 757,522 | ||||||||||||
Other expenses: | ||||||||||||||||
Salaries and employee benefits | 1,853,740 | 1,629,301 | 1,501,839 | 1,543,652 | ||||||||||||
Directors fees | 100,800 | 100,800 | 87,150 | 84,000 | ||||||||||||
Occupancy | 506,778 | 454,966 | 447,804 | 485,945 | ||||||||||||
Deposit insurance premium | 136,379 | 189,111 | 241,514 | 274,362 | ||||||||||||
Legal and professional services | 541,860 | 274,506 | 219,985 | 236,274 | ||||||||||||
Data processing | 328,097 | 289,599 | 320,034 | 303,619 | ||||||||||||
Loss on sale of securities | 17,234 | — | — | — | ||||||||||||
Valuation adjustments and expenses on foreclosed real estate | 55,119 | 335,208 | 152,088 | 223,932 | ||||||||||||
Loss on sale of OREO | 26,228 | — | — | — | ||||||||||||
Loss on sale of repossessed assets | 2,920 | — | 18,908 | 13,736 | ||||||||||||
Loss on consumer loans | — | — | 41,514 | 81,895 | ||||||||||||
Other | 653,321 | 541,818 | 504,725 | 522,302 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total other expenses | 4,222,476 | 3,815,309 | 3,535,561 | 3,769,717 | ||||||||||||
Income before income tax | 1,151,596 | 1,469,120 | 944,392 | (2,195,162 | ) | |||||||||||
Income tax expense (benefit) | 347,279 | 539,992 | 270,202 | (921,204 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net income (loss) | $ | 804,317 | $ | 929,128 | $ | 674,190 | $ | (1,273,958 | ) | |||||||
|
|
|
|
|
|
|
|
Source: Ottawa Bancorp, Inc.’s audited financial statements
77
EXHIBIT 5
Selected Financial Information
At March 31, 2016 and for the Years Ended December 31, 2011, 2012, 2013, 2014 and 2015
(In thousands)
March 31, 2016 | At December 31, | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Financial Condition Data: | ||||||||||||||||||||||||
Total assets | $ | 216,565 | $ | 213,563 | $ | 221,725 | $ | 170,610 | $ | 179,046 | $ | 182,950 | ||||||||||||
Loans, net (1) | 144,743 | 140,110 | 142,502 | 110,673 | 121,995 | 127,972 | ||||||||||||||||||
Securities available-for-sale | 48,445 | 46,985 | 52,772 | 34,547 | 28,864 | 33,007 | ||||||||||||||||||
Deposits | 180,176 | 176,735 | 182,233 | 145,769 | 155,075 | 159,948 | ||||||||||||||||||
Stockholders’ equity | 31,040 | 30,712 | 29,708 | 21,486 | 21,046 | 20,413 |
Source: Ottawa Bancorp, Inc.’s Prospectus
78
EXHIBIT 6
Income and Expense Trends
For the Three Months Ended March 31, 2015 and 2016, and
For the Years Ended December 31, 2011 through 2015
(In thousands)
For the Three Months Ended March 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Operations Data: | ||||||||||||||||||||||||||||
Total interest and dividend income | $ | 2,020 | $ | 2,059 | $ | 8,078 | $ | 6,595 | $ | 6,952 | $ | 7,919 | $ | 8,567 | ||||||||||||||
Total interest expense | 207 | 240 | 907 | 953 | 1,452 | 2,169 | 2,570 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net interest income | 1,813 | 1,819 | 7,171 | 5,642 | 5,500 | 5,750 | 5,997 | |||||||||||||||||||||
Provision for loan losses | 120 | 165 | 270 | 901 | 875 | 1,912 | 5,180 | |||||||||||||||||||||
Other income | 301 | 246 | 1,509 | 878 | 761 | 642 | 758 | |||||||||||||||||||||
Other expense | 1,620 | 1,740 | 7,393 | 4,467 | 3,917 | 3,536 | 3,770 | |||||||||||||||||||||
Income tax expense (benefit) | 115 | 16 | 246 | 348 | 540 | 270 | (921 | ) | ||||||||||||||||||||
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Net income (loss) | 259 | 144 | 771 | 804 | 929 | 674 | (1,274 | ) |
Source: Ottawa Bancorp, Inc.’s Prospectus
79
EXHIBIT 7
Normalized or Core Earnings
Twelve Months Ended March 31, 2016
(In thousands)
Total | Twelve Months Ended March 31, 2016 | |||||||
Net income before taxes | $ | 1,231 | $ | 1,231 | ||||
Taxes @ 24.2% | 345 | 345 | ||||||
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Net income | 886 | 886 | ||||||
CORE | ||||||||
Net income before taxes | $ | 1,231 | ||||||
Data processing expenses | 205 | |||||||
Real estate owned gains | (183 | ) | ||||||
Net income before taxes | 1,253 | |||||||
Tax @ 34.00% | 426 | |||||||
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Core income | $ | 827 | ||||||
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Source: Ottawa Bancorp, Inc.’s audited and unaudited financial statements
80
EXHIBIT 8
Performance Indicators
At or for the Three Months Ended March 31, 2015 and 2016, and
At or for the Years Ended December 31, 2011 through 2015
At or For The Three Months Ended March 31, | Years Ended December 31, | |||||||||||||||||||||||||||
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||
Performance Ratios: | ||||||||||||||||||||||||||||
Return on assets | 0.48 | % | 0.27 | % | 0.35 | % | 0.49 | % | 0.53 | % | 0.37 | % | (0.68 | )% | ||||||||||||||
Return on average stockholders’ equity | 3.34 | % | 1.92 | % | 2.56 | % | 3.62 | % | 4.38 | % | 3.23 | % | (5.97 | )% | ||||||||||||||
Average stockholders’ equity to average assets | 14.50 | % | 13.92 | % | 13.83 | % | 13.41 | % | 12.06 | % | 11.39 | % | 11.45 | % | ||||||||||||||
Stockholders’ equity to total assets at end of period | 14.33 | % | 14.38 | % | 14.38 | % | 13.40 | % | 12.59 | % | 11.75 | % | 11.16 | % | ||||||||||||||
Net interest rate spread(1) | 3.64 | % | 3.48 | % | 3.55 | % | 3.68 | % | 3.38 | % | 3.36 | % | 3.43 | % | ||||||||||||||
Net interest margin(2) | 3.71 | % | 3.56 | % | 3.62 | % | 3.75 | % | 3.45 | % | 3.45 | % | 3.53 | % | ||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 115.61 | % | 117.57 | % | 114.85 | % | 111.18 | % | 108.42 | % | 107.01 | % | 106.61 | % | ||||||||||||||
Other expense to average assets | 3.04 | % | 3.24 | % | 3.39 | % | 2.70 | % | 2.23 | % | 1.93 | % | 2.02 | % | ||||||||||||||
Efficiency ratio(3) | 76.67 | % | 84.30 | % | 85.17 | % | 68.51 | % | 62.56 | % | 55.31 | % | 55.81 | % | ||||||||||||||
Dividend payout ratio | — | — | — | — | — | — | — | |||||||||||||||||||||
Regulatory Capital Ratios(4): | ||||||||||||||||||||||||||||
Total risk-based capital (to risk-weighted assets) | 21.63 | % | 22.01 | % | 22.36 | % | 20.28 | % | 20.79 | % | 18.19 | % | 16.76 | % | ||||||||||||||
Tier 1 core capital (to risk-weighted assets) | 20.38 | % | 20.74 | % | 21.10 | % | 19.03 | % | 19.52 | % | 10.30 | % | 9.38 | % | ||||||||||||||
Common equity Tier 1 (to risk-weighted assets) | 20.38 | % | 20.74 | % | 21.10 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||
Tier 1 leverage (to adjusted total assets) | 13.37 | % | 12.87 | % | 13.18 | % | 11.59 | % | 11.32 | % | 10.30 | % | 9.38 | % | ||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||||||
Net charge-offs (recoveries) to average gross loans outstanding | (0.11 | )% | — | 0.25 | % | 1.30 | % | 1.12 | % | 2.56 | % | 3.79 | % | |||||||||||||||
Allowance for loan losses to gross loans outstanding | 1.49 | % | 1.72 | % | 1.56 | % | 1.59 | % | 2.52 | % | 2.69 | % | 3.57 | % | ||||||||||||||
Nonperforming loans to gross loans(5) | 3.41 | % | 4.08 | % | 3.55 | % | 4.17 | % | 5.18 | % | 5.04 | % | 6.53 | % | ||||||||||||||
Nonperforming assets to total assets(5) | 2.46 | % | 2.94 | % | 2.52 | % | 2.86 | % | 3.80 | % | 4.26 | % | 5.06 | % |
(1) | Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost on average interest-bearing liabilities. |
(2) | Represents net interest income as a percent of average interest-earning assets. |
(3) | Represents other noninterest expenses divided by the sum of net interest income and noninterest income. |
(4) | Ratios are for Ottawa Savings Bank. |
(5) | Nonperforming loans and assets include accruing loans past due 90 days or more. |
Source: Ottawa Bancorp, Inc.’s Prospectus
81
EXHIBIT 9
Volume/Rate Analysis
For the Three Months Ended March 31, 2016, and
For the Years Ended December 31, 2014 and December 31, 2015
For the Three Months Ended March 31, 2016 vs. 2015 | Yeas Ended December 31, 2015 vs. 2014 | Yeas Ended December 31, 2014 vs. 2013 | ||||||||||||||||||||||||||||||||||
Increase (Decrease) Due to | Increase (Decrease) Due to | Increase (Decrease) Due to | ||||||||||||||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | Volume | Rate | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||
Interest earned on | ||||||||||||||||||||||||||||||||||||
Securities, net | $ | (64 | ) | $ | 34 | $ | (30 | ) | $ | 388 | (3 | ) | $ | 385 | $ | 4 | 75 | $ | 79 | |||||||||||||||||
Loans receivable, net | (8 | ) | (4 | ) | (12 | ) | 1,387 | (300 | ) | 1,087 | (221 | ) | (214 | ) | (435 | ) | ||||||||||||||||||||
Nonmarketable equity securities | (1 | ) | 2 | 1 | 1 | — | 1 | — | 1 | 1 | ||||||||||||||||||||||||||
Other investments | (2 | ) | 4 | 2 | 5 | 6 | 11 | (3 | ) | 1 | (2 | ) | ||||||||||||||||||||||||
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Total interest-earnings assets | $ | (75 | ) | $ | 36 | $ | (39 | ) | $ | 1,781 | $ | (297 | ) | $ | 1,484 | $ | (2201 | ) | $ | (137 | ) | $ | (357 | ) | ||||||||||||
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Interest expense on | ||||||||||||||||||||||||||||||||||||
Money market accounts | $ | 2 | $ | — | $ | 2 | $ | 19 | $ | (5 | ) | $ | 14 | $ | (3 | ) | $ | (2 | ) | $ | (5 | ) | ||||||||||||||
Passbook savings accounts | — | — | — | 3 | — | 3 | 1 | (2 | ) | (1 | ) | |||||||||||||||||||||||||
Certificates of deposit | (20 | ) | (4 | ) | (24 | ) | 89 | (198 | ) | (109 | ) | (149 | ) | (345 | ) | (494 | ) | |||||||||||||||||||
Checking accounts | — | — | — | 5 | — | 5 | 1 | — | 1 | |||||||||||||||||||||||||||
Borrowed funds | (7 | ) | (4 | ) | (11 | ) | 34 | 7 | 41 | — | — | — | ||||||||||||||||||||||||
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Total interest-bearing liabilities | (25 | ) | (8 | ) | (33 | ) | 150 | (196 | ) | (46 | ) | (150 | ) | (349 | ) | (499 | ) | |||||||||||||||||||
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Change in net interest income | $ | (50 | ) | $ | 44 | $ | (6 | ) | $ | 1,631 | $ | (101 | ) | $ | 1,530 | $ | (70 | ) | $ | 212 | $ | 142 | ||||||||||||||
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Source: Ottawa Bancorp, Inc.’s Prospectus
82
EXHIBIT 10
Yield and Cost Trends
At March 31, 2016
For the Three Months Ended March 31, 2015 and 2016, and
For the Years Ended December 31, 2013, 2014 and 2015
At March 31, 2016 | Three Months Ended March 31, | Years Ended December 31, | ||||||||||||||||||||||
2016 | 2015 | 2015 | 2014 | 2013 | ||||||||||||||||||||
Yield/ Rate | Yield/ Rate | Yield/ Rate | Yield/ Rate | Yield/ Rate | Yield/ Rate | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans receivable, net(1) | 4.66 | % | 4.90 | % | 4.81 | % | 2.41 | % | 2.42 | % | 2.20 | % | ||||||||||||
Securities, net (2) | 3.01 | % | 2.43 | % | 2.46 | % | 4.91 | % | 5.18 | % | 5.37 | % | ||||||||||||
Nonmarketable equity securities | 0.65 | % | 0.59 | % | 0.22 | % | 0.53 | % | 0.57 | % | 0.47 | % | ||||||||||||
Interest-bearing deposits | 0.28 | % | 0.44 | % | 0.24 | % | 0.21 | % | 0.07 | % | 0.06 | % | ||||||||||||
Total interest-earning assets | — | 4.13 | % | 4.03 | % | 4.08 | % | 4.38 | % | 4.37 | % | |||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Money market accounts | 0.21 | % | 0.21 | % | 0.20 | % | 0.21 | % | 0.23 | % | 0.24 | % | ||||||||||||
Savings accounts | 0.06 | % | 0.07 | % | 0.07 | % | 0.07 | % | 0.07 | % | 0.08 | % | ||||||||||||
Certificates of deposit accounts | 0.93 | % | 0.83 | % | 0.84 | % | 0.84 | % | 1.08 | % | 1.44 | % | ||||||||||||
Checking accounts | 0.04 | % | 0.04 | % | 0.05 | % | 0.05 | % | 0.05 | % | 0.04 | % | ||||||||||||
Advances and borrowed funds | 1.81 | % | 1.76 | % | 2.39 | % | 1.60 | % | 0.20 | % | 0.00 | % | ||||||||||||
Total interest-earning liabilities | — | 0.49 | % | 0.55 | % | 0.53 | % | 0.70 | % | 0.99 | % | |||||||||||||
Net interest rate spread(3) | — | 3.64 | % | 3.48 | % | 3.55 | % | 3.68 | % | 3.38 | % | |||||||||||||
Net interest margin(4) | — | 3.71 | % | 3.56 | % | 3.62 | % | 3.75 | % | 3.45 | % | |||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | — | 115.61 | % | 117.57 | % | 114.85 | % | 111.18 | % | 108.42 | % |
(1) | Includes unamortized discounts and premiums. |
(2) | Amount is net of deferred loan origination (costs) fees, undisbursed loan funds, unamortized discounts and allowance for loan losses and includes nonperforming loans. Loan fees included in interest income were $126,000, $129,000, and $135,000 for 2015, 2014 and 2013, respectively. |
(3) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the average cost of interest-bearing liabilities. |
(4) | Net interest margin represents net interest income divided by average interest-earning assets. |
Source: Ottawa Bancorp, Inc.’s Prospectus
83
EXHIBIT 11
Net Portfolio Value
At March 31, 2016
Change in Interest Rates | Net Portfolio Value | NPV as % of Assets | ||||||||||||||||||||
(Basis Points) | Est. NPV | $ Change | % Change | NPV Ratio | Change(1) | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
+300 | $ | 34,186 | $ | (3,226 | ) | (8.62 | )% | 17.60 | % | 27 | ||||||||||||
+200 | 35,737 | (1,675 | ) | (4.48 | )% | 17.75 | % | 42 | ||||||||||||||
+100 | 37,005 | (407 | ) | (1.09 | )% | 17.74 | % | 41 | ||||||||||||||
— | 37,412 | — | — | 17.33 | % | — | ||||||||||||||||
-100 | 36,555 | (857 | ) | (2.29 | )% | 16.48 | % | (85 | ) |
(1) | Expressed in basis points. |
Source: Ottawa Bancorp, Inc.’s Prospectus
84
EXHIBIT 12
Loan Portfolio Composition
at March 31, 2016, and
At December 31, 2014 and 2015
At March 31, | At December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | ||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
One-to four-family residential | $ | 86,871 | 59.08 | % | $ | 90,037 | 63.17 | % | $ | 87,800 | 60.28 | % | ||||||||||||
Multi-family | 3,960 | 2.69 | % | 3,760 | 2.64 | % | 2,869 | 1.97 | % | |||||||||||||||
Lines of credit | 14,635 | 9.95 | % | 18,511 | 12.99 | % | 16,753 | 11.50 | % | |||||||||||||||
Nonresidential real estate | 19,927 | 13.55 | % | 19,162 | 13.44 | % | 20,016 | 13.74 | % | |||||||||||||||
Commercial | 6,106 | 4.15 | % | 3,440 | 2.41 | % | 6,261 | 4.30 | % | |||||||||||||||
Construction | 4,085 | 2.78 | % | 757 | 0.53 | % | 1,560 | 1.08 | % | |||||||||||||||
Consumer | 11,464 | 7.80 | % | 6,863 | 4.82 | % | 10,389 | 7.13 | % | |||||||||||||||
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Total loans, gross | 147,048 | 100.00 | % | 142,530 | 100.00 | % | 145,648 | 100.00 | % | |||||||||||||||
Undisbursed portion of loan funds | (7 | ) | (94 | ) | (756 | ) | ||||||||||||||||||
Allowance for loan losses | (2,192 | ) | (2,224 | ) | (2,315 | ) | ||||||||||||||||||
Deferred loan costs (fees), net | (106 | ) | (102 | ) | (76 | ) | ||||||||||||||||||
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Total loans, net | $ | 144,743 | $ | 140,110 | $ | 142,501 | ||||||||||||||||||
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Source: | Ottawa Bancorp, Inc.’s Prospectus |
85
EXHIBIT 13
Loan Maturity Schedule
At March 31, 2016 and at December 31, 2105
At March 31, 2016 | ||||||||||||||||||||||||||||||||
One- to Four-Family Real Estate | Multi-family | Lines of Credit | Nonresidential Real Estate | Commercial | Construction | Consumer | Total | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Amounts due one year or less | $ | 1,079 | $ | — | $ | 3,568 | $ | 2,699 | $ | 108 | $ | 4,085 | $ | 243 | $ | 11,782 | ||||||||||||||||
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After one year: | ||||||||||||||||||||||||||||||||
More than one year to three years | 791 | — | 1,255 | 482 | 697 | — | 1,891 | 5,116 | ||||||||||||||||||||||||
More than three years to five years | 857 | — | 2,060 | 205 | 3,549 | — | 4,015 | 10,686 | ||||||||||||||||||||||||
More than five years to ten years | 12,270 | 1,525 | 2,544 | 5,008 | 1,480 | — | 5,053 | 27,880 | ||||||||||||||||||||||||
More than ten years to twenty years | 34,325 | 2,127 | 5,208 | 8,974 | 272 | — | 262 | 51,168 | ||||||||||||||||||||||||
More than twenty years | 37,549 | 308 | — | 2,559 | — | — | — | 40,416 | ||||||||||||||||||||||||
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$ | 85,792 | $ | 3,960 | $ | 11,067 | $ | 17,228 | $ | 5,998 | $ | 0 | $ | 11,221 | $ | 135,266 | |||||||||||||||||
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Gross loans receivable | $ | 86.871 | $ | 3,960 | $ | 14,635 | $ | 19,927 | $ | 6,106 | $ | 4,085 | $ | 11,464 | $ | 147,048 | ||||||||||||||||
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Less: | ||||||||||||||||||||||||||||||||
Undisbursed portion of loan funds | (7 | ) | ||||||||||||||||||||||||||||||
Allowance for loan losses | (2,192 | ) | ||||||||||||||||||||||||||||||
Deferred loan costs (fees), net | (106 | ) | ||||||||||||||||||||||||||||||
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Total loans, net | $ | 144,743 | ||||||||||||||||||||||||||||||
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At December 31, 2015 | ||||||||||||||||||||||||||||||||
One- to Four-Family Real Estate | Multi-family | Lines of Credit | Nonresidential Real Estate | Commercial | Construction | Consumer | Total | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Amounts due one year or less | $ | 2,247 | $ | — | $ | 6,726 | $ | 2,747 | $ | 135 | $ | 757 | $ | 215 | $ | 12,827 | ||||||||||||||||
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After one year: | ||||||||||||||||||||||||||||||||
More than one year to three years | 1,250 | — | 1,139 | 395 | 653 | — | 1,948 | 5,385 | ||||||||||||||||||||||||
More than three years to five years | 2,928 | — | 2,043 | 238 | 1,240 | — | 3,568 | 10,017 | ||||||||||||||||||||||||
More than five years to ten years | 8,187 | 1,546 | 2,894 | 3,708 | 1,033 | — | 867 | 18,235 | ||||||||||||||||||||||||
More than ten years to twenty years | 33,668 | 1,904 | 5,709 | 8,294 | 379 | — | 265 | 50,219 | ||||||||||||||||||||||||
More than twenty years | 41,757 | 310 | — | 3,780 | — | — | — | 45,847 | ||||||||||||||||||||||||
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$ | 87,799 | $ | 3,760 | $ | 11,785 | $ | 16,415 | $ | 3,305 | $ | — | $ | 6,648 | $ | 129,703 | |||||||||||||||||
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Gross loans receivable | $ | 90,037 | $ | 3,760 | $ | 18,511 | $ | 19,162 | $ | 3,440 | $ | 757 | $ | 6,863 | $ | 142,530 | ||||||||||||||||
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Less: | ||||||||||||||||||||||||||||||||
Undisbursed portion of loan funds | (94 | ) | ||||||||||||||||||||||||||||||
Allowance for loan losses | (2,224 | ) | ||||||||||||||||||||||||||||||
Deferred loan costs (fees), net | (102 | ) | ||||||||||||||||||||||||||||||
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Total loans, net | $ | 140,110 | ||||||||||||||||||||||||||||||
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Source: | Ottawa Bancorp, Inc.’s Prospectus |
86
EXHIBIT 13 (continued)
Loan Maturity Schedule
At March 31, 2016 and at December 31, 2015
Fixed and Adjustable-Rate Loan Schedule
Due After March 31, 2017 | ||||||||||||
Fixed | Adjustable | Total | ||||||||||
At March 31, 2016 | (In thousands) | |||||||||||
One- to four-family | $ | 41,910 | $ | 43,882 | $ | 85,792 | ||||||
Multi-family | 927 | 3,033 | 3,960 | |||||||||
Lines of credit | 1,856 | 9,211 | 11,067 | |||||||||
Nonresidential real estate | 5,050 | 12,178 | 17,228 | |||||||||
Commercial business loans | 5,645 | 353 | 5,998 | |||||||||
Consumer | 11,221 | — | 11,221 | |||||||||
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Total loans | $ | 66,609 | $ | 68,657 | $ | 135,266 | ||||||
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Due After December 31, 2016 | ||||||||||||
Fixed | Adjustable | Total | ||||||||||
At December 31, 2015 | (In thousands) | |||||||||||
One- to four-family | $ | 44,830 | $ | 42,960 | $ | 87,790 | ||||||
Multi-family | 961 | 2,799 | 3,760 | |||||||||
Lines of credit | 1,883 | 9,902 | 11,785 | |||||||||
Nonresidential real estate | 3,972 | 12,443 | 16,415 | |||||||||
Commercial business loans | 2,941 | 364 | 3,305 | |||||||||
Consumer | 6,648 | — | 6,648 | |||||||||
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Total loans | $ | 61,235 | $ | 68,468 | $ | 129,703 | ||||||
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Source: | Ottawa Bancorp, Inc.’s Prospectus |
87
EXHIBIT 14
Loan Originations, Purchases and Sold
For the Three Months Ended March 31, 2015 and 2016, and
For the Years Ended December 31, 2011 through 2015
For the Three Months Ended March 31, | Years Ended December 31, | |||||||||||||||||||||||||||
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Beginning balance, net | $ | 140,110 | $ | 142,501 | $ | 142,501 | $ | 110,673 | $ | 121,995 | $ | 127,972 | $ | 135,351 | ||||||||||||||
Loans originated: | ||||||||||||||||||||||||||||
One- to four-family | 4,277 | 5,013 | 18,371 | 8,725 | 9,686 | 12,924 | 5,666 | |||||||||||||||||||||
Multi-family | 256 | — | 2,148 | — | 19 | 77 | 129 | |||||||||||||||||||||
Lines of credit | 128 | 3,696 | 6,513 | 470 | 987 | 381 | 1,799 | |||||||||||||||||||||
Nonresidential real estate | 1,500 | — | 1,403 | 2,775 | 3,182 | 3,888 | 4,015 | |||||||||||||||||||||
Commercial business loans | 984 | 277 | 1,173 | 3,513 | 458 | 285 | 335 | |||||||||||||||||||||
Construction | — | 198 | 757 | 412 | 2,111 | 105 | 982 | |||||||||||||||||||||
Consumer | 602 | 142 | 842 | 505 | 248 | 265 | 190 | |||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total loans originated | 7,747 | 9,326 | 31,207 | 16,400 | 16,691 | 17,925 | 13,116 | |||||||||||||||||||||
Loans acquired in Twin Oaks Savings Bank merger | — | — | — | $ | 29,796 | — | — | — | ||||||||||||||||||||
Loans purchased: | ||||||||||||||||||||||||||||
One- to four-family | $ | — | $ | — | $ | 2,000 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Multi-family | — | — | — | — | — | — | — | |||||||||||||||||||||
Nonresidential real estate | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial business loans | — | — | — | — | — | — | — | |||||||||||||||||||||
Consumer | 5,007 | — | — | 4,038 | 4,048 | 5,847 | 3,050 | |||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total loans purchased | 5,007 | — | 2,000 | 4,038 | 4,048 | 5,847 | 3,050 | |||||||||||||||||||||
Loan sales(1) | (1,347 | ) | (916 | ) | (7,652 | ) | (3,057 | ) | (5,592 | ) | (8,333 | ) | (598 | ) | ||||||||||||||
Principal payments | (6,889 | ) | (8,716 | ) | (28,673 | ) | (16,873 | ) | (25,322 | ) | (22,890 | ) | (22,927 | ) | ||||||||||||||
Change in allowance for loan losses | 32 | (172 | ) | 91 | 595 | 471 | 1,366 | (44 | ) | |||||||||||||||||||
Change in undisbursed loan losses | 87 | 315 | 662 | 940 | (1,640 | ) | 115 | 7 | ||||||||||||||||||||
Change in deferred loan costs (fees), net | (4 | ) | (2 | ) | (26 | ) | (11 | ) | 22 | (7 | ) | 17 | ||||||||||||||||
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| |||||||||||||||
Ending balance, net | $ | 144,743 | $ | 142,336 | $ | 140,110 | $ | 142,501 | $ | 110,673 | $ | 121,995 | $ | 127,972 | ||||||||||||||
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|
Source: | Ottawa Bancorp, Inc.’s Prospectus |
88
EXHIBIT 15
Loan Delinquencies
At March 31, 2016 and at December 31, 2014 and 2015
60-89 Days | 90 Days or More | Total | ||||||||||||||||||||||
Number | Principal Balance | Number | Principal Balance | Number | Amount | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
At March 31, 2016 | ||||||||||||||||||||||||
One- to four-family | 4 | $ | 1,004 | 7 | $ | 514 | 11 | $ | 1,518 | |||||||||||||||
Multi-family | — | — | — | — | — | — | ||||||||||||||||||
Lines of credit | 1 | 81 | — | — | 1 | 81 | ||||||||||||||||||
Nonresidential real estate | — | — | — | — | — | — | ||||||||||||||||||
Construction | — | — | 1 | — | — | — | ||||||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans | 5 | $ | 1,085 | 7 | $ | 514 | 12 | $ | 1,599 | |||||||||||||||
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|
|
|
|
|
| |||||||||||||
At December 31, 2015 | ||||||||||||||||||||||||
One- to four-family | 5 | $ | 753 | 9 | $ | 701 | 14 | $ | 1,454 | |||||||||||||||
Multi-family | — | — | — | — | — | — | ||||||||||||||||||
Lines of credit | — | — | 1 | 36 | 1 | 36 | ||||||||||||||||||
Nonresidential real estate | 1 | 113 | 1 | 18 | 2 | 131 | ||||||||||||||||||
Construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer | — | — | 1 | 3 | 1 | 3 | ||||||||||||||||||
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|
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|
|
|
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|
|
| |||||||||||||
Total loans | 6 | $ | 866 | 12 | $ | 758 | 18 | $ | 1,624 | |||||||||||||||
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|
|
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|
|
|
|
|
|
| |||||||||||||
At December 31, 2014 | ||||||||||||||||||||||||
One- to four-family | 4 | $ | 310 | 37 | $ | 1,741 | 41 | $ | 2,051 | |||||||||||||||
Multi-family | — | — | 2 | 257 | 2 | 257 | ||||||||||||||||||
Lines of credit | — | — | — | — | — | — | ||||||||||||||||||
Nonresidential real estate | 1 | 420 | 3 | 115 | 4 | 535 | ||||||||||||||||||
Construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer | — | — | 1 | 11 | 1 | 11 | ||||||||||||||||||
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|
|
|
|
|
|
| |||||||||||||
Total loans | 5 | $ | 730 | 43 | $ | 2,124 | 48 | $ | 2,854 | |||||||||||||||
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|
Source: | Ottawa Bancorp, Inc.’s Prospectus |
89
EXHIBIT 16
Nonperforming Assets
At March 31, 2016 and at December 31, 2011 through 2015
At March 31, | At December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||||||
One- to four-family | $ | 2,988 | $ | 2,982 | $ | 3,733 | $ | 3,549 | $ | 3,067 | $ | 6,755 | ||||||||||||
Multi-family | — | — | 257 | — | — | 305 | ||||||||||||||||||
Nonresidential real estate | 2,028 | 2,070 | 2,039 | 2,332 | 2,986 | 1,566 | ||||||||||||||||||
Commercial | — | — | — | — | — | 7 | ||||||||||||||||||
Consumer | — | 3 | 11 | — | — | 14 | ||||||||||||||||||
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|
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|
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|
| |||||||||||||
Total nonaccrual loans | 5,016 | 5,055 | 6,040 | 5,881 | 6,053 | 8,647 | ||||||||||||||||||
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|
|
|
|
| |||||||||||||
Past due greater than 90 days and still accruing: | ||||||||||||||||||||||||
One- to four-family | — | — | — | — | 92 | 36 | ||||||||||||||||||
Lines of credit | — | — | — | — | 15 | — | ||||||||||||||||||
Nonresidential real estate | — | — | — | — | 164 | — | ||||||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||||
Total nonperforming loans | 5,016 | 5,055 | 6,040 | 5,881 | 6,324 | 8,683 | ||||||||||||||||||
Foreclosed real estate | 319 | 313 | 233 | 585 | 1,297 | 542 | ||||||||||||||||||
Other repossessed assets | 3 | 17 | 63 | 13 | 9 | 40 | ||||||||||||||||||
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|
|
|
|
|
|
| |||||||||||||
Total nonperforming assets | $ | 5,338 | $ | 5,385 | $ | 6,336 | $ | 6,479 | $ | 7,630 | $ | 9,265 | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Allowance for loan losses as a percent of gross loans receivable | 1.49 | % | 1.56 | % | 1.59 | % | 2.56 | % | 2.69 | % | 3.57 | % | ||||||||||||
Allowance for loan losses as a percent of total nonperforming loans | 43.70 | % | 44.00 | % | 38.33 | % | 49.48 | % | 53.46 | % | 54.67 | % | ||||||||||||
Nonperforming loans as a percent of gross loans receivable | 3.41 | % | 3.55 | % | 4.17 | % | 5.18 | % | 5.04 | % | 6.53 | % | ||||||||||||
Nonperforming loans as a percent of total assets | 2.32 | % | 2.37 | % | 2.72 | % | 3.45 | % | 3.53 | % | 4.75 | % | ||||||||||||
Nonperforming assets as a percent of total assets | 2.46 | % | 2.52 | % | 2.86 | % | 3.80 | % | 4.26 | % | 5.06 | % |
Source: | Ottawa Bancorp, Inc.’s Prospectus |
90
EXHIBIT 17
Classified Assets
At March 31, 2016, and at December 31, 2011 through 2015
At March 31, | At December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Substandard assets | $ | 5,244 | $ | 5,291 | $ | 6,248 | $ | 6,385 | $ | 6,925 | $ | 10,885 | ||||||||||||
Doubtful assets | — | — | — | — | — | — | ||||||||||||||||||
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|
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|
|
| |||||||||||||
Total classified assets | $ | 5,244 | $ | 5,291 | $ | 6,248 | $ | 6,385 | $ | 6,925 | $ | 10,885 | ||||||||||||
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|
|
|
|
| |||||||||||||
Special mention assets | $ | 1,140 | $ | 717 | $ | 2,083 | $ | 3,361 | $ | 4,409 | $ | 4,892 |
Source: | Ottawa Bancorp, Inc.’s Prospectus |
91
EXHIBIT 18
Allowance for Loan Losses
At or for the Three Months Ended March 31, 2015 and 2016, and
For the Years Ended December 31, 2011 through 2015
Three Months Ended March 31, | Years Ended December 31, | |||||||||||||||||||||||||||
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Allowance at beginning of period | $ | 2,224 | $ | 2,315 | $ | 2,315 | $ | 2,910 | $ | 3,381 | $ | 4,747 | $ | 4,703 | ||||||||||||||
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|
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| |||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||
One to four-family | 190 | — | 296 | 976 | 1,136 | 2,352 | 1,666 | |||||||||||||||||||||
Multi-family | — | 4 | 34 | 183 | 282 | 133 | 250 | |||||||||||||||||||||
Non-residential real estate | — | — | 18 | 336 | 84 | 772 | 3,224 | |||||||||||||||||||||
Commercial | — | — | — | — | — | 52 | — | |||||||||||||||||||||
Consumer | 8 | 45 | 138 | 116 | 17 | 27 | 43 | |||||||||||||||||||||
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|
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|
|
|
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|
|
| |||||||||||||||
Total charge-offs | 198 | 49 | 486 | 1,611 | 1,519 | 3,336 | 5,183 | |||||||||||||||||||||
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| |||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||
One to four-family | 39 | 48 | 95 | 81 | 14 | 49 | 1 | |||||||||||||||||||||
Multi-family | 4 | 4 | 16 | 24 | 15 | — | — | |||||||||||||||||||||
Non-residential real estate | — | — | — | — | 136 | — | 35 | |||||||||||||||||||||
Consumer | 3 | 4 | 14 | 10 | 8 | 9 | 11 | |||||||||||||||||||||
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|
|
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|
|
|
|
|
|
| |||||||||||||||
Total recoveries | 46 | 56 | 125 | 115 | 173 | 58 | 47 | |||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net charge-offs (recoveries) | 152 | (7 | ) | 361 | 1,496 | 1,346 | 3,278 | 5,136 | ||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Additions charged to operations | 120 | 165 | 270 | 901 | 875 | 1,912 | 5,180 | |||||||||||||||||||||
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|
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|
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|
|
|
|
|
|
| |||||||||||||||
Allowance at end of period | $ | 2,192 | $ | 2,487 | $ | 2,224 | $ | 2,315 | $ | 2,910 | $ | 3,181 | $ | 4,747 | ||||||||||||||
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| |||||||||||||||
Ratios: | ||||||||||||||||||||||||||||
Allowance as a percent of total nonperforming loans | 43.70 | % | 41.99 | % | 44.00 | % | 38.33 | % | 49.48 | % | 53.46 | % | 54.67 | % | ||||||||||||||
Allowance as a percent of gross loans | 1.49 | % | 1.72 | % | 1.56 | % | 1.59 | % | 2.56 | % | 2.69 | % | 3.57 | % | ||||||||||||||
Net charge-offs (recoveries) to average loans outstanding | 0.11 | % | 0.00 | % | 0.25 | % | 1.30 | % | 1.12 | % | 2.52 | % | 3.79 | % |
Source: | Ottawa Bancorp, Inc.’s Prospectus |
92
EXHIBIT 19
Investment Portfolio Composition
At March 31, 2016, and
At December 31, 2013, 2014 and 2015
At March 31, | At December 31, | |||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | |||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||||||||||||||
State and municipal securities | $ | 19,155 | $ | 19,155 | $ | 19,237 | $ | 19,237 | $ | 20,225 | $ | 20,225 | $ | 8,444 | $ | 8,444 | ||||||||||||||||
Residential mortgage-backed securities | 29,290 | 29,290 | 27,748 | 27,748 | 32,547 | 32,547 | 26,103 | 26,103 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total available-for-sale | $ | 48,445 | $ | 48,445 | $ | 46,985 | $ | 46,985 | $ | 52,772 | $ | 52,772 | $ | 34,547 | $ | 34,547 | ||||||||||||||||
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|
|
Source: | Ottawa Bancorp, Inc.’s Prospectus |
93
EXHIBIT 20
Mix of Deposits
At March 31, 2016, and at December 31, 2013, 2015 and 2015
At March 31, | At December 31, | |||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | |||||||||||||||||||||||||
Noninterest-bearing checking | $ | 11,085 | 6.15 | % | $ | 10,326 | 5.84 | % | $ | 8,198 | 4.50 | % | $ | 5,219 | 3.58 | % | ||||||||||||||||
Interest-bearing checking | 27,486 | 15.26 | % | 26,390 | 14.93 | % | 22,847 | 12.54 | % | 14,382 | 9.87 | % | ||||||||||||||||||||
Money market accounts | 30,909 | 17.15 | % | 29,580 | 16.74 | % | 29,278 | 16.07 | % | 21,795 | 14.95 | %�� | ||||||||||||||||||||
Savings accounts | 24,518 | 13.61 | % | 22,740 | 12.87 | % | 22,765 | 12.49 | % | 16,941 | 11.62 | % | ||||||||||||||||||||
Certificates of deposit accounts | 86,178 | 47.83 | % | 87,699 | 49.62 | % | 99,145 | 54.41 | % | 87,432 | 59.98 | % | ||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total deposit accounts | $ | 180,176 | 100.00 | % | $ | 176,735 | 100.00 | % | $ | 182,233 | 100.00 | % | $ | 145,769 | 100.00 | % | ||||||||||||||||
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|
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|
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|
|
|
|
|
|
|
|
|
Source: | Ottawa Bancorp, Inc.’s Prospectus |
94
EXHIBIT 21
Certificates of Deposit By Rate
At March 31, 2016, and at December 31, 2013, 2014 and 2016
At | At December 31, | |||||||||||||||
March 31, 2016 | 2015 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Certificate accounts, by rate | ||||||||||||||||
Less than 1.00% | $ | 37,564 | $ | 41,155 | $ | 54,000 | $ | 41,752 | ||||||||
1.00% to 1.99% | 47,227 | 44,643 | 35,840 | 28,584 | ||||||||||||
2.00% to 2.99% | 1,386 | 1,900 | 6,223 | 13,565 | ||||||||||||
3.00% to 3.99% | 1 | 1 | 3,072 | 3,531 | ||||||||||||
4.00% to 4.99% | — | — | 10 | — | ||||||||||||
5.00% to 5.99% | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total certificate accounts | $ | 86,178 | $ | 87,699 | $ | 99,145 | $ | 87,432 | ||||||||
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|
|
|
|
|
Source: | Ottawa Bancorp, Inc.’s Prospectus |
95
EXHIBIT 22
Deposit Activity
At or for the Three Months Ended March 31, 2015 and 2016, and
At or for the Years Ended December 31, 2013, 2014 and 2015
For the Three Months Ended March 31, | Year Ended December 31, | |||||||||||||||||||
2016 | 2015 | 2015 | 2014 | 2013 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Beginning of period | $ | 176,735 | $ | 182,233 | $ | 182,233 | $ | 145,769 | $ | 155,075 | ||||||||||
Deposits acquired in Twin Oaks Savings Bank merger | — | — | — | 49,610 | — | |||||||||||||||
Net deposits (withdrawals) | 3,248 | (14,050 | ) | (6,317 | ) | (14,050 | ) | (10,672 | ) | |||||||||||
Interest credited on deposit accounts | 193 | 214 | 819 | 904 | 366 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
End of period | $ | 180,176 | $ | 183,323 | $ | 176,735 | $ | 182,233 | $ | 145,769 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Percent change | 1.95 | % | 0.60 | % | (3.02 | )% | 25.01 | % | (6.00 | )% | ||||||||||
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|
|
|
|
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|
|
Source: | Ottawa Bancorp, Inc.’s Prospectus |
96
EXHIBIT 23
OFFICES OF OTTAWA SAVINGS BANK
OTTAWA, ILLINOIS
As of March 31, 2016
Location | Owned or Leased | Year Acquired or Leased | Net Book Value as of March 31, 2016 | |||||
($000) | ||||||||
Main Office 925 LaSalle Street Ottawa, Illinois 61350 | Owned | 1958 | $ | 6,078 | ||||
Branch Offices 125 West Bluff Street Marseilles, Illinois 61341 | Owned | 2014 | 291 | |||||
1508 Creek Drive Morris, Illinois 60450 | Owned | 2014 | 359 | |||||
350 Houbolt Road, Suite 205 Joliet, Illinois 60431(1) | Leased (2) | — |
(1) | Denotes loan production office. |
(2) | Lease expires in January 2017 |
Source: Ottawa Bancorp, Inc.’s Prospectus
97
EXHIBIT 24
DIRECTORS AND MANAGEMENT OF THE BANK
At March 31, 2016
Name | Position(s) Held with the Bank | Age | Director Since | Term Expires | ||||
John M. Armstrong | Director | 59 | 2012 | 2017 | ||||
Jon Kranov | Director/Chairman/President/CEO | 61 | 2010 | 2017 | ||||
William J. Kuiper | Director | 64 | 2014 | 2017 | ||||
Thomas M. Adler | Director | 56 | 2014 | 2018 | ||||
Arthur C. Mueller | Director | 62 | 1987 | 2018 | ||||
Daniel J. Reynolds | Director | 69 | 2003 | 2018 | ||||
James A. Ferrero | Director | 66 | 2000 | 2019 | ||||
Craig M. Hepner | Director/EVP Chief Operating Officer | 50 | 2014 | 2019 | ||||
Keith F. Johnson | Director | 63 | 2001 | 2019 | ||||
Executive Officers Who Are Not Directors: | ||||||||
Marc N. Kingry | Vice President/Chief Financial Officer | 53 | — | — | ||||
Mark Stoudt | Vice President/Chief Lending Officer | 47 | — | — |
Source: Ottawa Bancorp, Inc.’s Prospectus
98
EXHIBIT 25
Key Demographic Data and Trends
Grundy and LaSalle Counties, Illinois and the United States
2000, 2010 and 2019
2000 | 2010 | % Change | 2019 | % Change | ||||||||||||||||
Population | ||||||||||||||||||||
Grundy County | 37,535 | 50,063 | 33.4 | % | 53,671 | 7.2 | % | |||||||||||||
LaSalle County | 111,509 | 113,924 | 2.2 | % | 113,091 | (0.7 | )% | |||||||||||||
Illinois | 12,419,293 | 12,830,632 | 3.3 | % | 13,128,059 | 2.3 | % | |||||||||||||
United States | 281,421,906 | 308,745,538 | 9.7 | % | 329,086,991 | 6.6 | % | |||||||||||||
Households | ||||||||||||||||||||
Grundy County | 14,293 | 18,546 | 29.8 | % | 19,782 | 6.7 | % | |||||||||||||
LaSalle County | 43,417 | 45,347 | 4.4 | % | 44,991 | (0.8 | )% | |||||||||||||
Illinois | 4,591,779 | 4,836,972 | 5.3 | % | 4,957,841 | 2.5 | % | |||||||||||||
United States | 105,480,101 | 116,716,292 | 10.7 | % | 124,379,842 | 6.6 | % | |||||||||||||
Per Capita Income | ||||||||||||||||||||
Grundy County | $ | 22,591 | $ | 27,276 | 20.7 | % | — | — | ||||||||||||
LaSalle County | 19,185 | 24,156 | 25.9 | % | — | — | ||||||||||||||
Illinois | 23,104 | 28,424 | 23.0 | % | — | — | ||||||||||||||
United States | 21,587 | 26,059 | 20.7 | % | — | — | ||||||||||||||
Median Household Income | ||||||||||||||||||||
Grundy County | $ | 51,719 | $ | 62,436 | 20.7 | % | $ | 66,718 | 6.9 | % | ||||||||||
LaSalle County | 40,308 | 50,206 | 24.6 | % | 56,152 | 11.8 | % | |||||||||||||
Illinois | 46,590 | 55,010 | 18.1 | % | 64,135 | 16.6 | % | |||||||||||||
United States | 41,994 | 50,046 | 19.2 | % | 61,485 | 22.9 | % |
Source: U.S. Census and ESRI
99
EXHIBIT 26
Key Housing Data
Market Area, Grundy and LaSalle Counties, Illinois and the United States
2000 & 2010
Occupied Housing Units | 2000 | 2010 | ||||||
Grundy County | 14,293 | 18,546 | ||||||
LaSalle County | 43,417 | 45,347 | ||||||
Illinois | 4,591,779 | 4,836,972 | ||||||
United States | 105,480,101 | 116,716,292 | ||||||
Occupancy Rate | ||||||||
Grundy County | ||||||||
Owner-Occupied | 72.4 | % | 75.1 | % | ||||
Renter-Occupied | 27.6 | % | 24.9 | % | ||||
LaSalle County | ||||||||
Owner-Occupied | 73.2 | % | 75.0 | % | ||||
Renter-Occupied | 26.8 | % | 25.0 | % | ||||
Illinois | ||||||||
Owner-Occupied | 67.3 | % | 67.5 | % | ||||
Renter-Occupied | 32.7 | % | 32.5 | % | ||||
United States | ||||||||
Owner-Occupied | 66.2 | % | 65.4 | % | ||||
Renter-Occupied | 33.8 | % | 34.6 | % | ||||
Median Housing Values | ||||||||
Grundy County | $ | 128,600 | $ | 178,800 | ||||
LaSalle County | 87,000 | 123,400 | ||||||
Illinois | 130,800 | 198,500 | ||||||
United States | 119,600 | 186,200 | ||||||
Median Rent | ||||||||
Grundy County | $ | 602 | $ | 941 | ||||
LaSalle County | 474 | 688 | ||||||
Illinois | 605 | 860 | ||||||
United States | 602 | 871 |
Source: U.S. Census Bureau
100
EXHIBIT 27
Major Sources of Employment by Industry Group
Grundy and LaSalle Counties, Illinois and the United States
2000 and 2010
2000 | ||||||||||||||||
Industry Group | Grundy County | LaSalle County | Illinois | United States | ||||||||||||
Agriculture/Mining | 2.2 | % | 3.2 | % | 1.1 | % | 1.9 | % | ||||||||
Construction | 10.2 | % | 7.4 | % | 5.7 | % | 6.8 | % | ||||||||
Manufacturing | 17.7 | % | 19.2 | % | 16.0 | % | 14.1 | % | ||||||||
Wholesale/Retail | 13.4 | % | 17.1 | % | 14.8 | % | 15.3 | % | ||||||||
Transportation/Utilities | 10.5 | % | 7.1 | % | 6.0 | % | 5.2 | % | ||||||||
Information | 2.7 | % | 2.2 | % | 3.0 | % | 3.1 | % | ||||||||
Finance, Insurance & Real Estate | 4.8 | % | 4.5 | % | 7.9 | % | 6.9 | % | ||||||||
Services | 38.5 | % | 39.3 | % | 45.5 | % | 46.7 | % |
2010 | ||||||||||||||||
Grundy County | LaSalle County | Illinois | United States | |||||||||||||
Agriculture/Mining | 1.6 | % | 3.5 | % | 1.1 | % | 0.9 | % | ||||||||
Construction | 8.5 | % | 6.1 | % | 5.1 | % | 5.1 | % | ||||||||
Manufacturing | 12.1 | % | 14.2 | % | 12.7 | % | 15.0 | % | ||||||||
Wholesale/Retail | 15.1 | % | 17.4 | % | 14.2 | % | 14.8 | % | ||||||||
Transportation/Utilities | 9.7 | % | 6.8 | % | 5.8 | % | 4.8 | % | ||||||||
Information | 1.3 | % | 1.3 | % | 2.0 | % | 1.8 | % | ||||||||
Finance, Insurance & Real Estate | 5.0 | % | 4.6 | % | 7.4 | % | 6.4 | % | ||||||||
Services | 46.7 | % | 46.1 | % | 51.7 | % | 51.2 | % |
Source: Bureau of the Census
101
EXHIBIT 28
Unemployment Rates
Grundy and LaSalle Counties, Illinois and the United States
For the Years 2012 through 2015 and through March 2016
Location | 2012 | 2013 | 2014 | 2015 | March 2016 | |||||||||||||||
Grundy County | 11.4 | % | 11.6 | % | 8.7 | % | 6.8 | % | 8.3 | % | ||||||||||
LaSalle County | 10.0 | % | 10.4 | % | 8.1 | % | 7.0 | % | 8.3 | % | ||||||||||
Illinois | 8.9 | % | 9.2 | % | 7.1 | % | 5.9 | % | 5.9 | % | ||||||||||
United States | 8.1 | % | 7.4 | % | 6.2 | % | 5.3 | % | 5.1 | % |
Source: Local Area Unemployment Statistics - U.S. Bureau of Labor
102
EXHIBIT 29
Market Share of Deposits
Grundy and LaSalle Counties
June 30, 2015
Grundy County Deposits ($000) | Ottawa’s Deposits ($000) | Ottawa’s Share (%) | ||||||||||
Banks | $ | 1,009,222 | — | — | ||||||||
Thrifts | 76,470 | $ | 16,097 | 21.1 | % | |||||||
|
|
|
|
|
| |||||||
Total | $ | 1,085,692 | $ | 16,097 | 1.5 | % | ||||||
LaSalle County Deposits ($000) | Ottawa’s Deposits ($000) | Ottawa’s Share (%) | ||||||||||
Banks | $ | 1,597,585 | — | — | ||||||||
Thrifts | 925,832 | $ | 165,269 | 17.9 | % | |||||||
|
|
|
|
|
| |||||||
Total | $ | 2,523,417 | $ | 165,269 | 6.5 | % | ||||||
Total Deposits ($000) | Ottawa’s Deposits ($000) | Ottawa’s Share (%) | ||||||||||
Banks | $ | 2,606,807 | — | — | ||||||||
Thrifts | 1,002,302 | $ | 181,366 | 18.1 | % | |||||||
|
|
|
|
|
| |||||||
Total | $ | 3,609,109 | $ | 181,366 | 5.0 | % |
Source: FDIC
103
EXHIBIT 30
National Interest Rates by Quarter
2012 - 1st Quarter 2016
1st Qtr. 2012 | 2nd Qtr. 2012 | 3rd Qtr. 2012 | 4th Qtr. 2012 | |||||||||||||
Prime Rate | 3.25 | % | 3.25 | % | 3.25 | % | 3.25 | % | ||||||||
90-Day Treasury Bills | 0.10 | % | 0.10 | % | 0.10 | % | 0.11 | % | ||||||||
1-Year Treasury Bills | 0.19 | % | 0.19 | % | 0.17 | % | 0.15 | % | ||||||||
30-Year Treasury Notes | 3.35 | % | 2.76 | % | 2.82 | % | 2.95 | % | ||||||||
1st Qtr. 2013 | 2nd Qtr. 2013 | 3rd Qtr. 2013 | 4th Qtr. 2013 | |||||||||||||
Prime Rate | 3.25 | % | 3.25 | % | 3.25 | % | 3.25 | % | ||||||||
90-Day Treasury Bills | 0.06 | % | 0.04 | % | 0.04 | % | 0.05 | % | ||||||||
1-Year Treasury Bills | 0.11 | % | 0.11 | % | 0.09 | % | 0.10 | % | ||||||||
30-Year Treasury Notes | 3.14 | % | 3.70 | % | 3.69 | % | 3.96 | % | ||||||||
1st Qtr. 2014 | 2nd Qtr. 2014 | 3rd Qtr. 2014 | 4th Qtr. 2014 | |||||||||||||
Prime Rate | 3.25 | % | 3.25 | % | 3.25 | % | 3.25 | % | ||||||||
90-Day Treasury Bills | 0.05 | % | 0.04 | % | 0.13 | % | 0.07 | % | ||||||||
1-Year Treasury Bills | 0.13 | % | 0.11 | % | 0.14 | % | 0.13 | % | ||||||||
30-Year Treasury Notes | 3.56 | % | 3.34 | % | 3.07 | % | 2.75 | % | ||||||||
1st Qtr. 2015 | 2nd Qtr. 2015 | 3rd Qtr. 2015 | 4th Qtr. 2015 | |||||||||||||
Prime Rate | 3.25 | % | 3.25 | % | 3.25 | % | 3.50 | % | ||||||||
90-Day Treasury Bills | 0.03 | % | 0.01 | % | 0.01 | % | 0.16 | % | ||||||||
1-Year Treasury Bills | 0.26 | % | 0.28 | % | 0.32 | % | 0.62 | % | ||||||||
30-Year Treasury Notes | 2.54 | % | 3.20 | % | 2.87 | % | 3.01 | % | ||||||||
1st Qtr. 2016 | ||||||||||||||||
Prime Rate | 3.50 | % | ||||||||||||||
90-Day Treasury Bills | 0.24 | % | ||||||||||||||
1-Year Treasury Bills | 0.53 | % | ||||||||||||||
30-Year Treasury Notes | 2.61 | % |
Source:The Wall Street Journal
104
EXHIBIT 31
KELLER & COMPANY Dublin, Ohio 614-766-1426 | Page 1 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF MARCH 31, 2016
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||||||||
State | Exchange | Price ($) | 52 Week Change (%) | Earnings (EPS) ($) | Assets ($) | 12 Month Div. ($) | Price/Net Earnings (X) | Price/Core Earnings (X) | Price/ Book Value (X) | Price/Tang. Book Value (X) | Price/ Assets (%) | |||||||||||||||||||||||||||||||||||
SCBS | SOUTHERN COMMUNITY BANCSHARES | AL | OTC PINK | 8.50 | 10.4 | 0.27 | 128.11 | 0.00 | 31.48 | 29.31 | 64.94 | 64.94 | 6.63 | |||||||||||||||||||||||||||||||||
SZBI | SOUTHFIRST BANCSHARES, INC | AL | OTC PINK | 3.30 | (21.4 | ) | 0.40 | 127.34 | 0.29 | 8.25 | 6.11 | 24.02 | 24.02 | 2.59 | ||||||||||||||||||||||||||||||||
BOFI | BOFI HOLDING, INC | CA | NASDAQ | 21.34 | (77.1 | ) | 1.57 | 105.65 | 0.00 | 13.59 | 13.59 | 219.32 | 220.68 | 20.20 | ||||||||||||||||||||||||||||||||
BYFC | BROADWAY FINANCIAL CORP | CA | NASDAQ | 1.93 | 54.4 | 0.33 | 13.86 | 0.00 | 5.85 | 5.68 | 113.53 | 113.53 | 13.92 | |||||||||||||||||||||||||||||||||
FUBP | FIRST ULB CORP | CA | OTC PINK | 15.30 | 8.9 | 1.44 | 277.27 | 0.13 | 10.63 | 10.63 | 59.19 | 60.96 | 5.52 | |||||||||||||||||||||||||||||||||
MLGF | MALAGA FINANCIAL CORP | CA | OTC BB | 22.26 | 12.0 | 2.09 | 168.53 | 0.86 | 10.65 | 10.65 | 97.89 | 97.89 | 13.21 | |||||||||||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS, INC | CA | NASDAQ | 17.05 | 6.6 | 0.78 | 107.27 | 0.37 | 21.86 | 23.04 | 134.25 | 134.89 | 15.89 | |||||||||||||||||||||||||||||||||
FBNK | FIRST CONNECTICUT BANCORP, INC | CT | NASDAQ | 15.96 | 3.8 | 0.80 | 172.13 | 0.21 | 19.95 | 22.48 | 102.24 | 104.11 | 9.27 | |||||||||||||||||||||||||||||||||
SIFI | SI FINANCIAL GROUP INC | CT | NASDAQ | 13.93 | 14.7 | 0.36 | 121.16 | 0.16 | 38.69 | 39.80 | 110.29 | 125.84 | 11.50 | |||||||||||||||||||||||||||||||||
UBNK | UNITED FINANCIAL BANCORP, INC | CT | NASDAQ | 12.59 | 1.3 | 0.99 | 125.31 | 0.45 | 12.72 | 12.85 | 100.56 | 126.92 | 10.05 | |||||||||||||||||||||||||||||||||
WSFS | WSFS FINANCIAL CORP | DE | NASDAQ | 32.52 | (57.0 | ) | 1.80 | 188.17 | 0.20 | 18.07 | 18.07 | 166.34 | 199.02 | 17.28 | ||||||||||||||||||||||||||||||||
ACFC | ATLANTIC COAST FINANCIAL CORP | FL | NASDAQ | 6.04 | 45.5 | 0.32 | 55.21 | 0.00 | 18.88 | 17.26 | 121.04 | 122.02 | 10.94 | |||||||||||||||||||||||||||||||||
EVER | EVERBANK FINANCIAL CORP | FL | NYSE | 15.09 | (16.3 | ) | 1.04 | 212.39 | 0.20 | 14.51 | 14.37 | 101.14 | 127.34 | 7.10 | ||||||||||||||||||||||||||||||||
FFHD | FIRSTATLANTIC BANK | FL | OTC BB | 9.67 | 13.1 | 0.62 | 70.09 | 0.41 | 15.60 | 15.85 | 108.04 | 114.03 | 13.80 | |||||||||||||||||||||||||||||||||
SSNF | SUNSHINE BANK | FL | OTC PINK | 19.20 | 4.3 | (1.39 | ) | 491.67 | 18.23 | (13.81 | ) | (13.06 | ) | 35.23 | 42.94 | 3.91 | ||||||||||||||||||||||||||||||
CHFN | CHARTER FINANCIAL CORP | GA | NASDAQ | 13.50 | 31.8 | 0.57 | 67.07 | 0.21 | 23.68 | 24.11 | 102.20 | 104.81 | 20.13 | |||||||||||||||||||||||||||||||||
TBNK | TERRITORIAL BANCORP INC | HI | NASDAQ | 26.06 | 9.7 | 1.53 | 188.53 | 0.73 | 17.03 | 17.61 | 114.60 | 114.85 | 13.82 | |||||||||||||||||||||||||||||||||
AJSB | AJS BANCORP, INC | IL | OTC BB | 15.00 | 9.1 | 0.08 | 96.21 | 0.00 | 187.50 | 166.67 | 110.05 | 110.05 | 15.59 | |||||||||||||||||||||||||||||||||
AFBA | ALLIED FIRST BANCORP, INC | IL | OTC BB | 0.89 | 790.0 | 1.62 | 223.46 | 0.00 | 0.55 | 0.54 | 6.04 | 6.04 | 0.40 | |||||||||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | IL | NASDAQ | 11.82 | (10.0 | ) | 0.44 | 75.85 | 0.21 | 26.86 | 26.27 | 110.99 | 112.04 | 15.58 | ||||||||||||||||||||||||||||||||
BFFI | BEN FRANKLIN FINANCIAL, INC | IL | OTC PINK | 11.25 | 11.9 | (0.48 | ) | 43.11 | 0.00 | (23.44 | ) | (20.09 | ) | 255.68 | 255.68 | 26.10 | ||||||||||||||||||||||||||||||
FIRT | FIRST BANCTRUST CORP | IL | OTC PINK | 17.10 | 4.9 | 1.62 | 215.60 | 0.77 | 10.56 | 10.75 | 79.09 | 80.81 | 7.93 | |||||||||||||||||||||||||||||||||
GTPS | GREAT AMERICAN BANCORP, INC | IL | OTC BB | 22.68 | (9.6 | ) | 1.48 | 405.16 | 1.65 | 15.32 | 16.93 | 61.10 | 65.15 | 5.60 | ||||||||||||||||||||||||||||||||
HARI | HARVARD BANCSHARES, INC | IL | OTC BB | 14.30 | 24.9 | 1.35 | 262.16 | 0.94 | 10.59 | 8.31 | 49.38 | 55.71 | 5.45 | |||||||||||||||||||||||||||||||||
IROQ | IF BANCORP, INC | IL | NASDAQ | 18.52 | 10.6 | 0.68 | 116.37 | 0.00 | 27.24 | 28.49 | 130.51 | 131.53 | 15.91 | |||||||||||||||||||||||||||||||||
JXSB | JACKSONVILLE BANCORP, INC | IL | NASDAQ | 26.00 | 8.3 | 1.81 | 172.21 | 1.12 | 14.36 | 15.57 | 109.80 | 119.16 | 15.10 | |||||||||||||||||||||||||||||||||
MCPH | MIDLAND CAPITAL HOLDINGS CORP | IL | OTC PINK | 16.80 | 43.6 | 0.05 | 320.83 | 0.00 | 336.00 | (280.00 | ) | 56.28 | 56.28 | 5.24 | ||||||||||||||||||||||||||||||||
OTTW | OTTAWA SAVINGS BANCORP, INC | IL | OTC BB | 10.90 | NM | 0.29 | 73.79 | 0.00 | 37.59 | 40.37 | 103.42 | 108.35 | 14.77 |
105
KELLER & COMPANY Dublin, Ohio 614-766-1426 | Page 2 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF MARCH 31, 2016
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||||||||
State | Exchange | Price ($) | 52 Week Change (%) | Earnings (EPS) ($) | Assets ($) | 12 Month Div. ($) | Price/Net Earnings (X) | Price/Core Earnings (X) | Price/ Book Value (X) | Price/Tang. Book Value (X) | Price/ Assets (%) | |||||||||||||||||||||||||||||||||||
PFED | PARK BANCORP, INC | IL | OTC PINK | 0.13 | (62.9 | ) | (1.81 | ) | 119.80 | 0.00 | (0.07 | ) | (0.07 | ) | 4.92 | 4.92 | 0.11 | |||||||||||||||||||||||||||||
RYFL | ROYAL FINANCIAL, INC | IL | OTC BB | 11.30 | 40.4 | 2.56 | 80.68 | 0.58 | 4.41 | 4.91 | 80.89 | 81.59 | 14.01 | |||||||||||||||||||||||||||||||||
SUGR | SUGAR CREEK FINANCIAL CORP | IL | OTC BB | 11.50 | 9.5 | 0.10 | 102.89 | 0.64 | 115.00 | 115.00 | 98.80 | 98.80 | 11.18 | |||||||||||||||||||||||||||||||||
AMFC | AMB FINANCIAL CORP | IN | OTC BB | 12.50 | 18.5 | 1.51 | 193.31 | 1.51 | 8.28 | 8.39 | 67.86 | 68.83 | 6.47 | |||||||||||||||||||||||||||||||||
DSFN | DSA FINANCIAL CORP | IN | OTC BB | 10.01 | 0.1 | 0.51 | 69.62 | 1.19 | 19.63 | 19.63 | 101.83 | 103.52 | 14.38 | |||||||||||||||||||||||||||||||||
FFWC | FFW CORP | IN | OTC PINK | 25.50 | 13.3 | 2.99 | 288.11 | 2.25 | 8.53 | 8.53 | 84.94 | 89.41 | 8.85 | |||||||||||||||||||||||||||||||||
FDLB | FIDELITY FEDERAL BANCORP | IN | OTC PINK | 25.00 | 273.1 | 7.88 | 413.28 | 2.18 | 3.17 | 3.38 | 52.65 | 53.21 | 6.05 | |||||||||||||||||||||||||||||||||
FBPI | FIRST BANCORP OF INDIANA, INC | IN | OTC BB | 15.75 | 4.9 | 1.08 | 229.29 | 0.66 | 14.58 | 14.06 | 66.65 | 81.27 | 6.87 | |||||||||||||||||||||||||||||||||
FCAP | FIRST CAPITAL, INC | IN | NASDAQ | 27.50 | 13.8 | 1.55 | 213.58 | 0.81 | 17.74 | 17.52 | 128.15 | 143.98 | 12.88 | |||||||||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP, INC | IN | NASDAQ | 33.98 | 25.7 | 3.00 | 313.15 | 1.70 | 11.33 | 11.33 | 104.52 | 119.10 | 10.85 | |||||||||||||||||||||||||||||||||
LPSB | LAPORTE BANCORP, INC | IN | NASDAQ | 15.76 | 21.1 | 0.68 | 95.78 | 0.27 | 23.18 | 23.88 | 114.95 | 130.14 | 16.45 | |||||||||||||||||||||||||||||||||
LOGN | LOGANSPORT FINANCIAL CORP | IN | OTC PINK | 34.52 | 6.3 | 2.41 | 219.52 | 0.61 | 14.32 | 14.21 | 124.26 | 125.44 | 15.73 | |||||||||||||||||||||||||||||||||
NWIN | NORTHWEST INDIANA BANCORP | IN | OTC BB | 30.00 | (5.6 | ) | 2.75 | 302.76 | 1.06 | 10.91 | 11.58 | 105.78 | 110.21 | 9.91 | ||||||||||||||||||||||||||||||||
TDCB | THIRD CENTURY BANCORP | IN | OTC BB | 8.08 | (9.2 | ) | 0.42 | 89.33 | 1.07 | 19.24 | 14.43 | 78.60 | 79.37 | 9.05 | ||||||||||||||||||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | IN | NASDAQ | 13.64 | 6.3 | 0.70 | 109.54 | 1.55 | 19.49 | 18.19 | 103.02 | 109.12 | 12.45 | |||||||||||||||||||||||||||||||||
WEIN | WEST END INDIANA BANCSHARES, INC | IN | OTC BB | 23.00 | 13.9 | 1.83 | 244.67 | 1.95 | 12.57 | 12.78 | 94.92 | 97.29 | 9.40 | |||||||||||||||||||||||||||||||||
CFFN | CAPITOL FEDERAL FINANCIAL, INC | KS | NASDAQ | 13.26 | 6.1 | 0.57 | 66.09 | 0.82 | 23.26 | 23.68 | 131.94 | 132.07 | 20.06 | |||||||||||||||||||||||||||||||||
PBSK | POAGE BANKSHARES, INC | KY | NASDAQ | 16.59 | 8.1 | 0.83 | 110.08 | 0.76 | 19.99 | 19.75 | 96.51 | 100.91 | 15.07 | |||||||||||||||||||||||||||||||||
CTUY | CENTURY NEXT FINANCIAL CORP | LA | OTC BB | 19.25 | 14.7 | 1.54 | 199.88 | 0.00 | 12.50 | 12.50 | 97.96 | 97.96 | 9.63 | |||||||||||||||||||||||||||||||||
FPBF | FPB FINANCIAL CORP | LA | OTC PINK | 14.00 | 27.3 | 1.89 | 150.49 | 0.63 | 7.41 | 7.53 | 88.11 | 88.11 | 9.30 | |||||||||||||||||||||||||||||||||
HIBE | HIBERNIA BANCORP, INC | LA | OTC BB | 20.48 | 12.2 | 0.23 | 128.39 | 0.00 | 89.04 | 93.09 | 90.82 | 90.82 | 15.95 | |||||||||||||||||||||||||||||||||
HFBL | HOME FED BANCORP, INC OF LOUISIANA | LA | NASDAQ | 22.50 | 16.9 | 1.22 | 125.63 | 0.70 | 18.44 | 18.44 | 146.29 | 147.16 | 17.91 | |||||||||||||||||||||||||||||||||
MDNB | MINDEN BANCORP, INC | LA | OTC BB | 22.10 | 150.0 | 1.81 | 136.72 | 0.00 | 12.21 | 12.21 | 108.02 | 108.02 | 16.16 | |||||||||||||||||||||||||||||||||
BHBK | BLUE HILLS BANCORP | MA | NASDAQ | 13.67 | 3.4 | 0.26 | 75.57 | 0.04 | 52.58 | 65.10 | 95.93 | 98.91 | 18.09 | |||||||||||||||||||||||||||||||||
BRKL | BROOKLINE BANCORP, INC | MA | NASDAQ | 11.01 | 9.6 | 0.71 | 86.10 | 0.35 | 15.51 | 14.68 | 115.05 | 147.59 | 12.79 | |||||||||||||||||||||||||||||||||
BLMT | BSB BANCORP INC | MA | NASDAQ | 22.47 | 30.3 | 0.76 | 199.42 | 0.00 | 29.57 | 29.57 | 139.74 | 140.17 | 11.27 | |||||||||||||||||||||||||||||||||
CBNK | CHICOPEE BANCORP, INC | MA | NASDAQ | 17.64 | 4.7 | 0.61 | 129.69 | 0.00 | 28.92 | 28.45 | 116.67 | 116.98 | 13.60 | |||||||||||||||||||||||||||||||||
GTWN | GEORGETOWN BANCORP, INC | MA | NASDAQ | 20.00 | 11.4 | 0.85 | 161.06 | 0.00 | 23.53 | 24.10 | 125.47 | 127.71 | 12.42 |
106
KELLER & COMPANY Dublin, Ohio 614-766-1426 | Page 3 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF MARCH 31, 2016
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||||||||
State | Exchange | Price ($) | 52 Week Change (%) | Earnings (EPS) ($) | Assets ($) | 12 Month Div. ($) | Price/Net Earnings (X) | Price/Core Earnings (X) | Price/ Book Value (X) | Price/Tang. Book Value (X) | Price/ Assets (%) | |||||||||||||||||||||||||||||||||||
HIFS | HINGHAM INSTITUTION FOR SAVINGS | MA | NASDAQ | 119.11 | 20.3 | 9.11 | 832.66 | 1.46 | 13.07 | 13.15 | 183.30 | 183.30 | 14.30 | |||||||||||||||||||||||||||||||||
MTGB | MEETINGHOUSE BANCORP INC | MA | OTC BB | 16.50 | 228.6 | 0.53 | 183.01 | 0.00 | 31.13 | 31.13 | 117.86 | 122.04 | 9.02 | |||||||||||||||||||||||||||||||||
EBSB | MERIDIAN BANCORP, INC | MA | NASDAQ | 13.92 | 5.7 | 0.46 | 65.40 | 0.06 | 30.26 | 32.37 | 127.59 | 130.70 | 21.28 | |||||||||||||||||||||||||||||||||
PLRM | PILGRIM BANCSHARES, INC | MA | OTC BB | 12.99 | 16.5 | 0.32 | 96.06 | 0.00 | 40.59 | 41.90 | 128.87 | 128.87 | 13.52 | |||||||||||||||||||||||||||||||||
PVBC | PROVIDENT BANCORP, INC | MA | NASDAQ | 13.23 | NM | 0.40 | 78.29 | 0.00 | 33.08 | 27.56 | 129.33 | 129.33 | 16.90 | |||||||||||||||||||||||||||||||||
WEBK | WELLESLEY BANCORP INC | MA | NASDAQ | 19.20 | 2.4 | 1.36 | 252.02 | 0.00 | 14.12 | 14.22 | 82.83 | 83.04 | 7.62 | |||||||||||||||||||||||||||||||||
WFD | WESTFIELD FINANCIAL INC | MA | NASDAQ | 8.43 | 9.1 | 0.31 | 73.35 | 0.11 | 27.19 | 33.72 | 110.48 | 110.48 | 11.49 | |||||||||||||||||||||||||||||||||
BYBK | BAY BANCORP, INC | MD | NASDAQ | 4.82 | (7.5 | ) | 0.19 | 44.39 | 0.00 | 25.37 | 26.78 | 78.63 | 81.69 | 10.86 | ||||||||||||||||||||||||||||||||
IFSB | COLOMBO BANK | MD | OTC PINK | 0.35 | 6.1 | 0.01 | 130.57 | 0.00 | 35.00 | (1.40 | ) | 2.72 | 2.72 | 0.27 | ||||||||||||||||||||||||||||||||
FRTR | FRATERNITY COMMUNITY BANCORP, INC | MD | OTC BB | 19.10 | 23.5 | (0.35 | ) | 116.66 | 0.00 | (54.57 | ) | (63.67 | ) | 113.08 | 113.08 | 16.37 | ||||||||||||||||||||||||||||||
HBK | HAMILTON BANCORP, INC | MD | NASDAQ | 13.31 | (2.7 | ) | 0.19 | 106.03 | 2.93 | 70.05 | 88.73 | 89.93 | 104.64 | 12.55 | ||||||||||||||||||||||||||||||||
MBCQ | MADISON BANK OF MARYLAND | MD | OTC PINK | 12.60 | 4.7 | (0.44 | ) | 67.18 | 0.00 | (28.64 | ) | (27.39 | ) | 100.80 | 100.80 | 18.76 | ||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP, INC | MD | NASDAQ | 5.05 | 2.0 | 0.45 | 75.52 | 0.00 | 11.22 | 10.74 | 58.93 | 59.62 | 6.69 | |||||||||||||||||||||||||||||||||
EGDW | EDGEWATER BANCORP, INC | MI | OTC BB | 13.50 | 29.8 | 0.55 | 202.66 | 0.00 | 24.55 | 24.55 | 71.47 | 73.85 | 6.66 | |||||||||||||||||||||||||||||||||
FFNM | FIRST FED OF NO MICHIGAN BANCORP | MI | NASDAQ | 7.16 | 20.3 | 0.98 | 90.08 | 0.20 | 7.31 | 5.38 | 82.39 | 86.68 | 7.95 | |||||||||||||||||||||||||||||||||
FBC | FLAGSTAR BANCORP, INC | MI | NYSE | 21.46 | 47.9 | 2.79 | 242.49 | 0.00 | 7.69 | 7.50 | 79.42 | 98.53 | 8.85 | |||||||||||||||||||||||||||||||||
STBI | STURGIS BANCORP, INC | MI | OTC BB | 10.58 | 0.8 | 1.28 | 177.33 | 0.42 | 8.27 | 8.53 | 62.35 | 79.19 | 5.97 | |||||||||||||||||||||||||||||||||
WBKC | WOLVERINE BANCORP, INC | MI | NASDAQ | 25.50 | 4.1 | 1.54 | 194.10 | 2.09 | 16.56 | 16.56 | 91.43 | 91.56 | 13.14 | |||||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL, INC | MN | NASDAQ | 11.26 | (6.9 | ) | 0.81 | 143.19 | 0.67 | 13.90 | 13.40 | 67.71 | 69.46 | 7.86 | ||||||||||||||||||||||||||||||||
REDW | REDWOOD FINANCIAL, INC | MN | OTC PINK | 35.34 | 17.8 | 5.98 | 558.63 | 2.68 | 5.91 | 6.25 | 51.95 | 60.34 | 6.33 | |||||||||||||||||||||||||||||||||
WEFP | WELLS FINANCIAL CORP | MN | OTC PINK | 32.00 | 14.2 | 6.31 | 345.83 | 2.01 | 5.07 | 4.91 | 87.84 | 94.90 | 9.25 | |||||||||||||||||||||||||||||||||
CCFC | CCSB FINANCIAL CORP | MO | OTC PINK | 10.50 | 40.0 | 0.14 | 100.55 | 0.00 | 75.00 | (525.00 | ) | 94.17 | 94.34 | 10.44 | ||||||||||||||||||||||||||||||||
FBSI | FIRST BANCSHARES, INC | MO | OTC PINK | 9.01 | 24.3 | 1.82 | 137.42 | 0.06 | 4.95 | 4.79 | 78.21 | 78.21 | 6.56 | |||||||||||||||||||||||||||||||||
LXMO | LEXINGTON B & L FINANCIAL CORP | MO | OTC PINK | 29.00 | 52.6 | 0.86 | 194.63 | 0.00 | 33.72 | 31.18 | 119.24 | 125.92 | 14.90 | |||||||||||||||||||||||||||||||||
LBCP | LIBERTY BANCORP, INC | MO | OTC BB | 16.15 | 20.3 | 1.25 | 121.07 | 5.76 | 12.92 | 11.96 | 118.66 | 127.17 | 13.34 | |||||||||||||||||||||||||||||||||
NASB | NASB FINANCIAL, INC | MO | OTC BB | 32.00 | 4.2 | 2.93 | 203.23 | 2.65 | 10.92 | 11.15 | 125.34 | 131.09 | 15.75 | |||||||||||||||||||||||||||||||||
PULB | PULASKI FINANCIAL CORP | MO | NASDAQ | 16.15 | 30.6 | 1.18 | 137.44 | 0.38 | 13.69 | 13.69 | 155.89 | 161.18 | 11.75 | |||||||||||||||||||||||||||||||||
QRRY | QUARRY CITY S&L ASSOC | MO | OTC BB | 12.10 | (6.1 | ) | 0.52 | 125.15 | 0.00 | 23.27 | 23.27 | 60.02 | 62.37 | 9.67 |
107
KELLER & COMPANY Dublin, Ohio 614-766-1426 | Page 4 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF MARCH 31, 2016
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||||||||
State | Exchange | Price ($) | 52 Week Change (%) | Earnings (EPS) ($) | Assets ($) | 12 Month Div. ($) | Price/Net Earnings (X) | Price/Core Earnings (X) | Price/ Book Value (X) | Price/Tang. Book Value (X) | Price/ Assets (%) | |||||||||||||||||||||||||||||||||||
ASBB | ASB BANCORP, INC | NC | NASDAQ | 24.24 | 18.2 | 0.98 | 196.15 | 2.13 | 24.73 | 27.24 | 114.83 | 114.83 | 12.36 | |||||||||||||||||||||||||||||||||
ENFC | ENTEGRA FINANCIAL CORP | NC | NASDAQ | 17.37 | 12.0 | 3.67 | 158.71 | 0.00 | 4.73 | 4.95 | 85.86 | 88.31 | 10.94 | |||||||||||||||||||||||||||||||||
KSBI | KS BANCORP, INC | NC | OTC BB | 11.81 | (9.2 | ) | 1.25 | 259.37 | 0.28 | 9.45 | 10.27 | 46.83 | 46.83 | 4.55 | ||||||||||||||||||||||||||||||||
LSFG | LIFESTORE FINANCIAL GROUP | NC | OTC PINK | 15.95 | 48.1 | 1.32 | 253.39 | 0.00 | 12.08 | 13.52 | 61.44 | 63.52 | 6.29 | |||||||||||||||||||||||||||||||||
LTLB | LITTLE BANK, SSB | NC | OTC PINK | 12.50 | 16.7 | 0.95 | 110.80 | 0.15 | 13.16 | 13.16 | 117.92 | 117.92 | 11.28 | |||||||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | NE | NASDAQ | 8.25 | 10.0 | 0.47 | 70.11 | 0.00 | 17.55 | 17.55 | 98.68 | 102.48 | 11.77 | |||||||||||||||||||||||||||||||||
MCBK | MADISON COUNTY FINANCIAL, INC | NE | NASDAQ | 19.81 | NM | 1.28 | 121.45 | 0.25 | 15.48 | 16.11 | 94.15 | 99.20 | 16.31 | |||||||||||||||||||||||||||||||||
GUAA | GUARANTY BANCORP, INC | NH | OTC PINK | 18.50 | 28.8 | 0.11 | 19.14 | 0.04 | 168.18 | 185.00 | 1,069.36 | 1,075.58 | 96.66 | |||||||||||||||||||||||||||||||||
LFGP | LEDYARD FINANCIAL GROUP, INC | NH | OTC PINK | 46.20 | (4.7 | ) | 4.08 | 433.42 | 2.33 | 11.32 | 11.44 | 115.67 | 115.67 | 10.66 | ||||||||||||||||||||||||||||||||
LSBG | NEW HAMPSHIRE THRIFT BANCSHARES | NH | NASDAQ | 13.98 | 16.1 | 1.08 | 181.15 | 0.54 | 12.94 | 13.19 | 85.71 | 143.09 | 7.72 | |||||||||||||||||||||||||||||||||
CBNJ | CAPE BANCORP, INC | NJ | NASDAQ | 13.44 | 40.6 | 0.90 | 118.32 | 0.30 | 14.93 | 13.58 | 108.13 | 127.03 | 11.36 | |||||||||||||||||||||||||||||||||
CSBK | CLIFTON BANCORP INC | NJ | NASDAQ | 15.12 | 7.2 | 0.31 | 45.21 | 0.29 | 48.77 | 58.15 | 116.94 | 116.94 | 33.44 | |||||||||||||||||||||||||||||||||
DLNO | DELANCO BANCORP, INC | NJ | OTC PINK | 9.05 | 18.3 | (0.22 | ) | 137.54 | 0.00 | (41.14 | ) | 50.28 | 67.04 | 67.04 | 6.58 | |||||||||||||||||||||||||||||||
KRNY | KEARNY FINANCIAL CORP | NJ | NASDAQ | 12.35 | (9.1 | ) | 0.11 | 65.81 | 0.05 | 112.27 | 102.92 | 70.85 | 78.21 | 18.77 | ||||||||||||||||||||||||||||||||
MSBF | MSB FINANCIAL CORP | NJ | NASDAQ | 12.85 | (2.2 | ) | 0.09 | 63.11 | 0.00 | 142.78 | 321.25 | 141.21 | 141.21 | 20.36 | ||||||||||||||||||||||||||||||||
NFBK | NORTHFIELD BANCORP, INC | NJ | NASDAQ | 16.44 | (71.0 | ) | 0.40 | 66.32 | 0.25 | 41.10 | 41.10 | 141.85 | 146.00 | 24.79 | ||||||||||||||||||||||||||||||||
OSHC | OCEAN SHORE HOLDING COMPANY | NJ | NASDAQ | 17.52 | 7.5 | 1.07 | 162.73 | 0.24 | 16.37 | 16.37 | 100.46 | 105.29 | 10.77 | |||||||||||||||||||||||||||||||||
OCFC | OCEANFIRST FINANCIAL CORP | NJ | NASDAQ | 17.68 | (59.6 | ) | 1.18 | 150.27 | 0.50 | 14.98 | 15.11 | 128.21 | 129.71 | 11.77 | ||||||||||||||||||||||||||||||||
ORIT | ORITANI FINANCIAL CORP | NJ | NASDAQ | 16.97 | (0.8 | ) | 1.21 | 77.73 | 1.10 | 14.02 | 27.37 | 147.95 | 147.95 | 21.83 | ||||||||||||||||||||||||||||||||
PFS | PROVIDENT FINANCIAL SERVICES, INC | NJ | NYSE | 20.19 | 8.3 | 1.27 | 135.45 | 0.00 | 15.90 | 16.02 | 111.06 | 172.56 | 14.91 | |||||||||||||||||||||||||||||||||
AF | ASTORIA FINANCIAL CORP | NY | NYSE | 15.84 | NM | 0.87 | 148.67 | 0.16 | 18.21 | 18.42 | 96.59 | 109.47 | 10.65 | |||||||||||||||||||||||||||||||||
CARV | CARVER BANCORP, INC | NY | NASDAQ | 5.22 | 12.5 | 0.09 | 204.26 | 0.00 | 58.00 | (29.00 | ) | 35.03 | 35.18 | 2.56 | ||||||||||||||||||||||||||||||||
DCOM | DIME COMMUNITY BANCSHARES, INC | NY | NASDAQ | 17.62 | 9.4 | 1.20 | 134.67 | 0.54 | 14.68 | 14.93 | 133.28 | 150.34 | 13.08 | |||||||||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | NY | NASDAQ | 18.01 | (11.7 | ) | 1.56 | 212.36 | 0.95 | 11.54 | 12.17 | 86.92 | 117.33 | 8.48 | ||||||||||||||||||||||||||||||||
GOVB | GOUVERNEUR BANCORP, INC | NY | OTC PINK | 13.52 | (1.7 | ) | 0.53 | 58.95 | 0.13 | 25.51 | 25.04 | 110.64 | 110.64 | 22.93 | ||||||||||||||||||||||||||||||||
PFDB | PATRIOT FEDERAL BANK | NY | OTC PINK | 7.00 | 25.0 | 0.37 | 135.09 | 0.00 | 18.92 | 20.00 | 55.69 | 56.54 | 5.18 | |||||||||||||||||||||||||||||||||
SCAY | SENECA-CAYUGA BANCORP, INC | NY | OTC PINK | 10.82 | (5.9 | ) | 0.50 | 117.98 | 0.55 | 21.64 | 40.07 | 105.46 | 107.02 | 9.17 | ||||||||||||||||||||||||||||||||
SNNY | SUNNYSIDE BANCORP INC | NY | OTC BB | 11.50 | 13.9 | (0.11 | ) | 115.67 | 0.00 | (104.55 | ) | (50.00 | ) | 80.53 | 80.53 | 9.94 |
108
KELLER & COMPANY Dublin, Ohio 614-766-1426 | Page 5 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF MARCH 31, 2016
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||||||||
State | Exchange | Price ($) | 52 Week Change (%) | Earnings (EPS) ($) | Assets ($) | 12 Month Div. ($) | Price/Net Earnings (X) | Price/Core Earnings (X) | Price/ Book Value (X) | Price/Tang. Book Value (X) | Price/ Assets (%) | |||||||||||||||||||||||||||||||||||
TRST | TRUSTCO BANK CORP NY | NY | NASDAQ | 6.06 | (11.9 | ) | 0.44 | 49.65 | 0.26 | 13.77 | 13.77 | 139.95 | 139.95 | 12.21 | ||||||||||||||||||||||||||||||||
ASBN | ASB FINANCIAL CORP | OH | OTC PINK | 12.50 | (3.8 | ) | 1.00 | 129.73 | 0.00 | 12.50 | 12.50 | 87.90 | 98.43 | 9.64 | ||||||||||||||||||||||||||||||||
CFBK | CENTRAL FEDERAL CORP | OH | NASDAQ | 1.35 | (3.6 | ) | 0.19 | 21.70 | 0.00 | 7.11 | 7.11 | 57.20 | 57.45 | 6.22 | ||||||||||||||||||||||||||||||||
CHEV | CHEVIOT FINANCIAL CORP | OH | NASDAQ | 14.69 | (4.3 | ) | 0.23 | 84.05 | 0.20 | 63.87 | 58.76 | 112.74 | 130.23 | 17.48 | ||||||||||||||||||||||||||||||||
CIBN | COMMUNITY INVESTORS BANCORP, INC | OH | OTC PINK | 12.90 | 22.9 | 2.08 | 267.66 | 0.36 | 6.20 | 6.23 | 56.63 | 59.01 | 4.82 | |||||||||||||||||||||||||||||||||
FDEF | FIRST DEFIANCE FINANCIAL CORP | OH | NASDAQ | 38.41 | 17.0 | 2.96 | 257.08 | 0.80 | 12.98 | 12.80 | 122.52 | 165.63 | 14.94 | |||||||||||||||||||||||||||||||||
FNFI | FIRST NILES FINANCIAL, INC | OH | OTC PINK | 8.15 | (4.1 | ) | 0.25 | 86.23 | 0.26 | 32.60 | 116.43 | 77.55 | 77.55 | 9.45 | ||||||||||||||||||||||||||||||||
HCFL | HOME CITY FINANCIAL CORP | OH | OTC PINK | 18.13 | 0.7 | 1.73 | 190.68 | 0.00 | 10.48 | 10.13 | 88.48 | 88.48 | 9.51 | |||||||||||||||||||||||||||||||||
HLFN | HOME LOAN FINANCIAL CORP | OH | OTC BB | 20.78 | 3.9 | 2.21 | 140.94 | 1.43 | 9.40 | 9.49 | 133.89 | 134.94 | 14.74 | |||||||||||||||||||||||||||||||||
PPSF | PEOPLES-SIDNEY FINANCIAL CORP | OH | OTC PINK | 8.25 | 0.0 | 0.41 | 91.41 | 0.45 | 20.12 | 19.64 | 68.92 | 68.92 | 9.03 | |||||||||||||||||||||||||||||||||
PFOH | PERPETUAL FEDERAL SAVINGS BANK | OH | OTC PINK | 20.00 | (2.4 | ) | 2.03 | 146.89 | 0.78 | 9.85 | 9.90 | 76.05 | 76.05 | 13.62 | ||||||||||||||||||||||||||||||||
UCFC | UNITED COMMUNITY FINANCIAL CORP | OH | NASDAQ | 5.87 | 7.5 | 0.34 | 41.79 | 0.07 | 17.26 | 16.77 | 114.42 | 117.17 | 14.05 | |||||||||||||||||||||||||||||||||
VERF | VERSAILLES FINANCIAL CORP | OH | OTC BB | 17.00 | (1.4 | ) | 0.64 | 140.25 | 0.00 | 26.56 | 26.56 | 65.41 | 65.41 | 12.12 | ||||||||||||||||||||||||||||||||
MWBC | WATCH HILL BANK | OH | OTC PINK | 14.79 | 27.0 | 0.28 | 136.19 | 0.00 | 52.82 | 52.82 | 91.98 | 92.21 | 10.86 | |||||||||||||||||||||||||||||||||
WAYN | WAYNE SAVINGS BANCSHARES, INC | OH | NASDAQ | 12.35 | (7.8 | ) | 0.64 | 156.02 | 0.45 | 19.30 | 18.16 | 88.21 | 93.21 | 7.92 | ||||||||||||||||||||||||||||||||
BNCL | BENEFICIAL BANCORP, INC | PA | NASDAQ | 13.69 | 21.3 | 0.30 | 64.04 | 0.00 | 45.63 | 44.16 | 92.56 | 104.50 | 21.38 | |||||||||||||||||||||||||||||||||
ESSA | ESSA BANCORP, INC | PA | NASDAQ | 13.49 | 5.2 | 0.80 | 154.51 | 0.33 | 16.86 | 18.23 | 90.54 | 100.90 | 8.73 | |||||||||||||||||||||||||||||||||
FXCB | FOX CHASE BANCORP, INC | PA | NASDAQ | 19.32 | 21.7 | 0.81 | 95.66 | 0.65 | 23.85 | 23.56 | 128.54 | 128.54 | 20.20 | |||||||||||||||||||||||||||||||||
HARL | HARLEYSVILLE SAVINGS FIN CORP | PA | OTC PINK | 19.00 | 3.5 | 1.49 | 206.76 | 1.00 | 12.75 | 13.19 | 110.47 | 110.47 | 9.19 | |||||||||||||||||||||||||||||||||
MLVF | MALVERN BANCORP, INC | PA | NASDAQ | 16.02 | 9.9 | 0.73 | 109.91 | 0.00 | 21.95 | 25.43 | 151.85 | 152.72 | 14.58 | |||||||||||||||||||||||||||||||||
NWBI | NORTHWEST BANCSHARES INC | PA | NASDAQ | 13.51 | 9.5 | 0.59 | 88.50 | 0.52 | 22.90 | 22.52 | 118.20 | 154.40 | 15.27 | |||||||||||||||||||||||||||||||||
PBCP | POLONIA BANCORP, INC | PA | OTC BB | 10.70 | (18.6 | ) | (0.01 | ) | 87.22 | 0.00 | (1,070.00 | ) | (97.27 | ) | 109.86 | 110.31 | 12.27 | |||||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP, INC | PA | NASDAQ | 14.32 | 12.8 | 0.29 | 60.62 | 0.00 | 49.38 | 286.40 | 128.09 | 128.09 | 23.62 | |||||||||||||||||||||||||||||||||
QNTO | QUAINT OAK BANCORP INC | PA | OTC PINK | 12.00 | (40.9 | ) | 0.72 | 98.53 | 0.00 | 16.67 | 16.22 | 126.45 | 126.72 | 12.18 | ||||||||||||||||||||||||||||||||
STND | STANDARD FINANCIAL CORP | PA | NASDAQ | 24.30 | 15.7 | 1.12 | 136.71 | 0.59 | 21.70 | 22.09 | 115.00 | 131.21 | 17.77 | |||||||||||||||||||||||||||||||||
UASB | UNITED-AMERICAN SAVINGS BANK | PA | OTC BB | 42.50 | 107.3 | 2.30 | 301.47 | 0.34 | 18.48 | 18.24 | 159.18 | 159.18 | 14.10 | |||||||||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | PA | NASDAQ | 11.35 | (2.2 | ) | 0.70 | 160.04 | 0.62 | 16.21 | 16.45 | 76.84 | 76.84 | 7.09 | ||||||||||||||||||||||||||||||||
CWAY | COASTWAY BANCORP, INC | RI | NASDAQ | 12.53 | 13.0 | 0.34 | 115.60 | 0.00 | 36.85 | 29.83 | 112.48 | 112.98 | 10.84 |
109
KELLER & COMPANY Dublin, Ohio 614-766-1426 | Page 6 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF MARCH 31, 2016
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||||||||
State | Exchange | Price ($) | 52 Week Change (%) | Earnings (EPS) ($) | Assets ($) | 12 Month Div. ($) | Price/Net Earnings (X) | Price/Core Earnings (X) | Price/ Book Value (X) | Price/Tang. Book Value (X) | Price/ Assets (%) | |||||||||||||||||||||||||||||||||||
FCPB | FIRST CAPITAL BANCSHARES, INC | SC | OTC PINK | 5.93 | 13.0 | 0.62 | 91.94 | 0.00 | 9.56 | 8.85 | 42.82 | 42.82 | 6.45 | |||||||||||||||||||||||||||||||||
FSGB | FIRST FEDERAL OF SOUTH CAROLINA | SC | OTC PINK | 3.00 | 0.0 | 0.15 | 72.94 | 0.00 | 20.00 | 17.65 | 68.34 | 72.64 | 4.11 | |||||||||||||||||||||||||||||||||
HFFC | HF FINANCIAL CORP | SD | NASDAQ | 18.00 | 21.9 | 1.14 | 166.41 | 0.45 | 15.79 | 15.25 | 117.80 | 137.30 | 10.82 | |||||||||||||||||||||||||||||||||
CASH | META FINANCIAL GROUP, INC | SD | NASDAQ | 45.60 | 14.8 | 2.67 | 426.03 | 0.54 | 17.08 | 16.83 | 109.40 | 143.85 | 10.70 | |||||||||||||||||||||||||||||||||
AFCB | ATHENS BANCSHARES CORP | TN | NASDAQ | 25.98 | 21.7 | 1.72 | 178.88 | 0.00 | 15.10 | 14.85 | 118.85 | 119.01 | 14.52 | |||||||||||||||||||||||||||||||||
FABK | FIRST ADVANTAGE BANCORP | TN | NASDAQ | 16.45 | 16.7 | 0.87 | 125.00 | 0.38 | 18.91 | 19.58 | 102.68 | 102.68 | 13.16 | |||||||||||||||||||||||||||||||||
SFBK | SFB BANCORP, INC | TN | OTC PINK | 35.00 | 9.4 | 1.23 | 109.53 | 0.37 | 28.46 | 29.66 | 146.02 | 147.49 | 31.95 | |||||||||||||||||||||||||||||||||
UNTN | UNITED TENNESSEE BANKSHARES | TN | OTC PINK | 22.00 | 33.3 | 2.01 | 234.39 | 0.72 | 10.95 | 11.17 | 91.25 | 91.25 | 9.39 | |||||||||||||||||||||||||||||||||
BAFI | BANCAFFILIATED, INC | TX | OTC PINK | 75.00 | 27.9 | 30.49 | 2,065.52 | 14.37 | 2.46 | 2.52 | 38.42 | 40.24 | 3.63 | |||||||||||||||||||||||||||||||||
TBK | TRIUMPH BANCORP, INC | TX | NASDAQ | 15.83 | 15.9 | 1.62 | 93.87 | 0.00 | 9.77 | 9.71 | 106.38 | 118.75 | 16.86 | |||||||||||||||||||||||||||||||||
ANCB | ANCHOR BANCORP, INC | WA | NASDAQ | 24.28 | 7.9 | 0.56 | 162.32 | 2.26 | 43.36 | 28.23 | 103.67 | 104.12 | 14.96 | |||||||||||||||||||||||||||||||||
FFNW | FIRST FINANCIAL NORTHWEST, INC | WA | NASDAQ | 13.17 | 6.6 | 0.67 | 72.17 | 0.24 | 19.66 | 20.58 | 104.77 | 104.77 | 18.25 | |||||||||||||||||||||||||||||||||
FSBW | FS BANCORP, INC | WA | NASDAQ | 25.19 | 30.1 | 2.82 | 215.13 | 0.00 | 8.93 | 9.00 | 100.76 | 108.77 | 11.71 | |||||||||||||||||||||||||||||||||
HMST | HOMESTREET, INC | WA | NASDAQ | 20.81 | 13.9 | 1.68 | 199.36 | 0.00 | 12.39 | 12.85 | 109.82 | 186.30 | 10.44 | |||||||||||||||||||||||||||||||||
RVSB | RIVERVIEW BANCORP, INC | WA | NASDAQ | 4.20 | (6.7 | ) | 0.30 | 39.26 | 0.00 | 14.00 | 13.13 | 75.95 | 95.89 | 10.70 | ||||||||||||||||||||||||||||||||
SFBC | SOUND FINANCIAL BANCORP, INC | WA | NASDAQ | 22.90 | 16.5 | 1.98 | 217.69 | 0.58 | 11.57 | 11.23 | 106.26 | 114.21 | 10.52 | |||||||||||||||||||||||||||||||||
TSBK | TIMBERLAND BANCORP, INC | WA | NASDAQ | 12.64 | 18.8 | 1.29 | 118.72 | 0.31 | 9.80 | 9.50 | 97.91 | 106.22 | 10.65 | |||||||||||||||||||||||||||||||||
ABCW | ANCHOR BANCORP WISCONSIN, INC | WI | NASDAQ | 45.06 | 29.7 | 6.48 | 105.82 | 0.00 | 6.95 | 7.57 | 261.07 | 275.43 | 42.58 | |||||||||||||||||||||||||||||||||
BKMU | BANK MUTUAL CORP | WI | NASDAQ | 7.57 | 41.8 | 0.31 | 54.90 | 0.19 | 24.42 | 24.42 | 123.49 | 126.80 | 13.79 | |||||||||||||||||||||||||||||||||
HWIS | HOME BANCORP WISCONSIN, INC | WI | OTC PINK | 9.35 | 21.4 | (0.51 | ) | 154.97 | 0.00 | (18.33 | ) | (31.17 | ) | 75.16 | 75.16 | 6.03 | ||||||||||||||||||||||||||||||
WSBF | WATERSTONE FINANCIAL, INC | WI | NASDAQ | 13.68 | 6.5 | 0.57 | 60.46 | 0.20 | 24.00 | 24.00 | 101.71 | 102.24 | 22.63 | |||||||||||||||||||||||||||||||||
WBB | WESTBURY BANCORP, INC | WI | NASDAQ | 19.00 | 8.6 | 1.03 | 158.06 | 0.61 | 18.45 | 8.41 | 114.67 | 116.56 | 12.02 | |||||||||||||||||||||||||||||||||
CRZY | CRAZY WOMAN CREEK BANCORP | WY | OTC PINK | 11.90 | 8.7 | 1.15 | 168.24 | 0.43 | 10.35 | 10.26 | 67.69 | 68.51 | 7.07 |
110
KELLER & COMPANY Dublin, Ohio 614-766-1426 | Page 7 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF MARCH 31, 2016
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||
Price ($) | 52 Week Change (%) | Earnings (EPS) ($) | Assets ($) | 12 Month Div. (S) | Price/Net Earnings (X) | Price/Core Earnings (X) | Price/ Book Value (X) | Price/Tang. Book Value (X) | Price/ Assets (%) | |||||||||||||||||||||||||||||||
ALL INSTITUTIONS | ||||||||||||||||||||||||||||||||||||||||
AVERAGE | 17.41 | 18.16 | 1.33 | 167.11 | 0.68 | 16.40 | 18.19 | 106.12 | 112.31 | 12.76 | ||||||||||||||||||||||||||||||
HIGH | 119.11 | 790.00 | 30.49 | 2,065.52 | 18.23 | 336.00 | 321.25 | 1,069.36 | 1,075.58 | 96.66 | ||||||||||||||||||||||||||||||
LOW | 0.13 | (77.10 | ) | (1.81 | ) | 13.86 | 0.00 | (1,070.00 | ) | (525.00 | ) | 2.72 | 2.72 | 0.11 | ||||||||||||||||||||||||||
AVERAGE FOR STATE | ||||||||||||||||||||||||||||||||||||||||
IL | 13.44 | 66.98 | 0.70 | 164.87 | 0.42 | 54.46 | 9.55 | 89.78 | 91.87 | 10.93 | ||||||||||||||||||||||||||||||
AVERAGE BY REGION | ||||||||||||||||||||||||||||||||||||||||
MID-ATLANTIC | 17.07 | 7.88 | 1.30 | 146.71 | 0.42 | 14.98 | 14.00 | 107.54 | 116.54 | 12.63 | ||||||||||||||||||||||||||||||
MIDWEST | 16.50 | 29.87 | 1.31 | 164.07 | 0.61 | 26.66 | 15.47 | 93.97 | 99.01 | 11.57 | ||||||||||||||||||||||||||||||
NORTH CENTRAL | 20.56 | 17.41 | 1.86 | 194.48 | 1.09 | 19.23 | (21.00 | ) | 100.73 | 107.99 | 11.70 | |||||||||||||||||||||||||||||
NORTHEAST | 22.20 | 23.06 | 1.23 | 178.98 | 0.30 | 33.69 | 35.29 | 166.81 | 174.91 | 16.79 | ||||||||||||||||||||||||||||||
SOUTHEAST | 14.75 | 13.74 | 0.92 | 163.50 | 1.30 | 14.76 | 14.71 | 86.30 | 89.30 | 10.56 | ||||||||||||||||||||||||||||||
SOUTHWEST | 27.02 | 37.84 | 5.54 | 414.36 | 2.24 | 21.69 | 22.29 | 96.57 | 98.72 | 12.78 | ||||||||||||||||||||||||||||||
WEST | 15.27 | 3.79 | 0.80 | 125.89 | 0.35 | (1.15 | ) | 26.63 | 105.80 | 113.77 | 13.55 | |||||||||||||||||||||||||||||
AVERAGE BY EXCHANGE | ||||||||||||||||||||||||||||||||||||||||
NYSE | 18.15 | 13.30 | 1.49 | 184.75 | 0.09 | 14.08 | 14.08 | 97.05 | 126.98 | 10.38 | ||||||||||||||||||||||||||||||
NASDAQ | 17.82 | 7.62 | 1.10 | 134.59 | 0.43 | 24.32 | 28.45 | 113.18 | 121.84 | 14.27 | ||||||||||||||||||||||||||||||
OTC-BB | 16.47 | 48.46 | 1.10 | 167.09 | 0.73 | (13.04 | ) | 18.25 | 91.29 | 94.06 | 10.93 | |||||||||||||||||||||||||||||
OTC PINK | 17.23 | 16.76 | 1.92 | 229.02 | 1.20 | 23.05 | (1.51 | ) | 104.22 | 105.90 | 11.40 |
111
EXHIBIT 32
KELLER & COMPANY | Page 1 | |
Dublin, Ohio | ||
614-766-1426 |
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES | ||||||||||||||||||||||||||||||||||||||||
State | Total Assets ($000) | Total Equity ($000) | Total Tang. Equity ($000) | ROAA (%) | Core ROAA (%) | ROAE (%) | Core ROAE (%) | Exchange | Number of Shares Outstg. | Mkt. Value of Shares ($000) | ||||||||||||||||||||||||||||||||
SCBS | SOUTHERN COMMUNITY BANCSHARES | AL | 81,869 | 8,364 | 8,364 | 0.22 | 0.23 | 2.04 | 2.22 | OTC PINK | 639,077 | 5,432 | ||||||||||||||||||||||||||||||
SZBI | SOUTHFIRST BANCSHARES, INC | AL | 89,329 | 9,638 | 9,638 | 0.31 | 0.42 | 2.93 | 3.98 | OTC PINK | 701,526 | 2,315 | ||||||||||||||||||||||||||||||
BOFI | BOFI HOLDING, INC | CA | 6,662,215 | 613,330 | 609,855 | 1.67 | 1.67 | 16.16 | 18.61 | NASDAQ | 63,060,732 | 1,345,716 | ||||||||||||||||||||||||||||||
BYFC | BROADWAY FINANCIAL CORP | CA | 402,902 | 49,480 | 49,439 | 2.57 | 2.63 | 19.61 | NM | NASDAQ | 29,076,708 | 56,118 | ||||||||||||||||||||||||||||||
FUBP | FIRST ULB CORP | CA | 390,928 | 36,451 | 35,392 | 0.54 | 0.54 | 5.58 | 5.70 | OTC PINK | 1,409,938 | 21,572 | ||||||||||||||||||||||||||||||
MLGF | MALAGA FINANCIAL CORP | CA | 983,556 | 132,731 | 132,731 | 1.27 | 1.27 | 9.21 | 9.47 | OTC BB | 5,836,000 | 129,909 | ||||||||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS, INC | CA | 1,164,542 | 137,865 | 137,218 | 0.75 | 0.71 | 6.17 | 5.73 | NASDAQ | 10,856,027 | 185,095 | ||||||||||||||||||||||||||||||
FBNK | FIRST CONNECTICUT BANCORP, INC | CT | 2,708,885 | 245,721 | 241,315 | 0.48 | 0.43 | 5.12 | 4.64 | NASDAQ | 15,737,863 | 251,176 | ||||||||||||||||||||||||||||||
SIFI | SI FINANCIAL GROUP INC | CT | 1,480,240 | 154,330 | 135,281 | 0.31 | 0.30 | 2.82 | 2.72 | NASDAQ | 12,217,088 | 170,184 | ||||||||||||||||||||||||||||||
UBNK | UNITED FINANCIAL BANCORP, INC | CT | 6,261,832 | 625,521 | 495,660 | 0.85 | 0.83 | 7.94 | 7.96 | NASDAQ | 49,969,878 | 629,121 | ||||||||||||||||||||||||||||||
WSFS | WSFS FINANCIAL CORP | DE | 5,585,962 | 580,471 | 485,176 | 1.03 | 1.02 | 9.22 | 9.98 | NASDAQ | 29,686,400 | 965,402 | ||||||||||||||||||||||||||||||
ACFC | ATLANTIC COAST FINANCIAL CORP | FL | 856,211 | 77,334 | 76,714 | 0.64 | 0.69 | 6.51 | 7.26 | NASDAQ | 15,509,061 | 93,675 | ||||||||||||||||||||||||||||||
EVER | EVERBANK FINANCIAL CORP | FL | 26,601,026 | 1,868,321 | 1,484,409 | 0.54 | 0.55 | 6.99 | 7.29 | NYSE | 125,247,143 | 1,889,979 | ||||||||||||||||||||||||||||||
FFHD | FIRSTATLANTIC BANK | FL | 420,163 | 53,664 | 50,843 | 0.92 | 0.91 | 6.92 | 6.90 | OTC BB | 5,995,000 | 57,972 | ||||||||||||||||||||||||||||||
SSNF | SUNSHINE BANK | FL | 506,913 | 56,193 | 46,092 | (0.39 | ) | (0.41 | ) | (2.55 | ) | (3.10 | ) | OTC PINK | 1,031,000 | 19,795 | ||||||||||||||||||||||||||
CHFN | CHARTER FINANCIAL CORP | GA | 1,007,398 | 198,367 | 193,484 | 0.86 | 0.84 | 4.29 | 4.07 | NASDAQ | 15,020,869 | 202,782 | ||||||||||||||||||||||||||||||
TBNK | TERRITORIAL BANCORP INC | HI | 1,821,117 | 219,641 | 219,215 | 0.84 | 0.82 | 6.71 | 6.57 | NASDAQ | 9,659,685 | 251,731 | ||||||||||||||||||||||||||||||
AJSB | AJS BANCORP, INC | IL | 208,493 | 29,538 | 29,534 | 0.08 | 0.09 | 0.57 | 0.62 | OTC BB | 2,167,040 | 32,506 | ||||||||||||||||||||||||||||||
AFBA | ALLIED FIRST BANCORP, INC | IL | 114,257 | 7,530 | 7,530 | 0.72 | 0.74 | 11.00 | 11.88 | OTC BB | 511,300 | 455 | ||||||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | IL | 1,512,443 | 212,364 | 210,351 | 0.58 | 0.60 | 4.08 | 4.19 | NASDAQ | 19,939,500 | 235,685 | ||||||||||||||||||||||||||||||
BFFI | BEN FRANKLIN FINANCIAL, INC | IL | 84,057 | 8,586 | 8,586 | (1.08 | ) | (1.25 | ) | (10.92 | ) | (13.26 | ) | OTC PINK | 1,949,956 | 21,937 | ||||||||||||||||||||||||||
FIRT | FIRST BANCTRUST CORP | IL | 449,541 | 45,090 | 44,129 | 0.77 | 0.75 | 7.51 | 7.49 | OTC PINK | 2,085,116 | 35,655 | ||||||||||||||||||||||||||||||
GTPS | GREAT AMERICAN BANCORP, INC | IL | 182,009 | 16,674 | 15,636 | 0.37 | 0.33 | 3.99 | 3.69 | OTC BB | 449,227 | 10,188 | ||||||||||||||||||||||||||||||
HARI | HARVARD BANCSHARES, INC | IL | 213,943 | 23,630 | 20,945 | 0.51 | 0.65 | 4.66 | 5.96 | OTC BB | 816,076 | 11,670 | ||||||||||||||||||||||||||||||
IROQ | IF BANCORP, INC | IL | 559,884 | 68,263 | 67,754 | 0.59 | 0.56 | 4.81 | 4.66 | NASDAQ | 4,811,255 | 89,104 | ||||||||||||||||||||||||||||||
JXSB | JACKSONVILLE BANCORP, INC | IL | 308,611 | 42,429 | 39,104 | 1.04 | 0.97 | 7.63 | 7.18 | NASDAQ | 1,792,013 | 46,592 | ||||||||||||||||||||||||||||||
MCPH | MIDLAND CAPITAL HOLDINGS CORP | IL | 119,541 | 11,122 | 11,122 | 0.01 | (0.02 | ) | 0.15 | (0.21 | ) | OTC PINK | 372,600 | 6,260 | ||||||||||||||||||||||||||||
OTTW | OTTAWA SAVINGS BANCORP, INC | IL | 213,563 | 30,495 | 29,108 | 0.38 | 0.36 | 2.72 | 2.62 | OTC BB | 2,894,123 | 31,546 | ||||||||||||||||||||||||||||||
PFED | PARK BANCORP, INC | IL | 142,559 | 3,140 | 3,140 | (1.44 | ) | (1.46 | ) | NM | NM | OTC PINK | 1,190,000 | 155 |
112
KELLER & COMPANY Dublin, Ohio 614-766-1426 | Page 2 |
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES | ||||||||||||||||||||||||||||||||||||||||
State | Total Assets ($000) | Total Equity ($000) | Total Tang. Equity ($000) | ROAA (%) | Core ROAA (%) | ROAE (%) | Core ROAE (%) | Exchange | Number of Shares Outstg. | Mkt. Value of Shares ($000) | ||||||||||||||||||||||||||||||||
RYFL | ROYAL FINANCIAL, INC | IL | 202,282 | 35,020 | 34,724 | 3.91 | 3.51 | 18.32 | 19.57 | OTC BB | 2,507,112 | 28,330 | ||||||||||||||||||||||||||||||
SUGR | SUGAR CREEK FINANCIAL CORP | IL | 96,690 | 10,936 | 10,936 | 0.10 | 0.10 | 0.85 | 0.84 | OTC BB | 939,730 | 10,807 | ||||||||||||||||||||||||||||||
AMFC | AMB FINANCIAL CORP | IN | 189,757 | 18,082 | 17,825 | 0.79 | 0.78 | 8.18 | 8.08 | OTC BB | 981,638 | 12,270 | ||||||||||||||||||||||||||||||
DSFN | DSA FINANCIAL CORP | IN | 116,268 | 16,417 | 16,144 | 0.72 | 0.72 | 5.14 | 4.96 | OTC BB | 1,670,000 | 16,717 | ||||||||||||||||||||||||||||||
FFWC | FFW CORP | IN | 332,498 | 34,641 | 32,909 | 1.02 | 1.02 | 9.95 | 10.05 | OTC PINK | 1,154,084 | 29,429 | ||||||||||||||||||||||||||||||
FDLB | FIDELITY FEDERAL BANCORP | IN | 378,839 | 43,525 | 43,064 | 2.33 | 2.19 | 16.60 | 19.75 | OTC PINK | 916,656 | 22,916 | ||||||||||||||||||||||||||||||
FBPI | FIRST BANCORP OF INDIANA, INC | IN | 401,058 | 41,332 | 33,894 | 0.48 | 0.49 | 4.56 | 4.75 | OTC BB | 1,749,165 | 27,549 | ||||||||||||||||||||||||||||||
FCAP | FIRST CAPITAL, INC | IN | 713,067 | 71,657 | 63,779 | 0.87 | 0.89 | 7.22 | 8.26 | NASDAQ | 3,338,603 | 91,812 | ||||||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP, INC | IN | 738,899 | 76,706 | 67,318 | 0.97 | 0.97 | 9.23 | 9.40 | NASDAQ | 2,359,581 | 80,179 | ||||||||||||||||||||||||||||||
LPSB | LAPORTE BANCORP, INC | IN | 534,447 | 76,506 | 67,588 | 0.73 | 0.70 | 4.96 | 4.90 | NASDAQ | 5,580,115 | 87,943 | ||||||||||||||||||||||||||||||
LOGN | LOGANSPORT FINANCIAL CORP | IN | 172,544 | 21,833 | 21,630 | 1.14 | 1.15 | 8.69 | 8.91 | OTC PINK | 786,000 | 27,133 | ||||||||||||||||||||||||||||||
NWIN | NORTHWEST INDIANA BANCORP | IN | 864,893 | 81,004 | 77,766 | 0.96 | 0.90 | 9.69 | 9.41 | OTC BB | 2,856,657 | 85,700 | ||||||||||||||||||||||||||||||
TDCB | THIRD CENTURY BANCORP | IN | 126,852 | 14,596 | 14,454 | 0.48 | 0.64 | 4.11 | 5.28 | OTC BB | 1,420,000 | 11,474 | ||||||||||||||||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | IN | 507,670 | 61,368 | 57,929 | 0.64 | 0.68 | 5.28 | 5.46 | NASDAQ | 4,634,608 | 63,216 | ||||||||||||||||||||||||||||||
WEIN | WEST END INDIANA BANCSHARES, INC | IN | 270,726 | 26,808 | 26,162 | 0.77 | 0.75 | 7.57 | 7.43 | OTC BB | 1,106,476 | 25,449 | ||||||||||||||||||||||||||||||
CFFN | CAPITOL FEDERAL FINANCIAL, INC | KS | 9,148,091 | 1,390,833 | 1,390,313 | 0.86 | 0.86 | 5.63 | 5.46 | NASDAQ | 138,421,120 | 1,835,464 | ||||||||||||||||||||||||||||||
PBSK | POAGE BANKSHARES, INC | KY | 434,606 | 67,865 | 64,895 | 0.77 | 0.78 | 4.83 | 5.00 | NASDAQ | 3,948,244 | 65,501 | ||||||||||||||||||||||||||||||
CTUY | CENTURY NEXT FINANCIAL CORP | LA | 211,027 | 20,749 | 20,749 | 0.85 | 0.85 | 7.83 | 8.22 | OTC BB | 1,055,760 | 20,323 | ||||||||||||||||||||||||||||||
FPBF | FPB FINANCIAL CORP | LA | 240,326 | 25,370 | 25,370 | 1.30 | 1.28 | 11.91 | 12.22 | OTC PINK | 1,597,000 | 22,358 | ||||||||||||||||||||||||||||||
HIBE | HIBERNIA BANCORP, INC | LA | 112,858 | 19,817 | 19,817 | 0.18 | 0.18 | 1.00 | 0.99 | OTC BB | 878,994 | 18,002 | ||||||||||||||||||||||||||||||
HFBL | HOME FED BANCORP, INC OF LOUISIANA | LA | 361,448 | 44,250 | 43,987 | 0.99 | 0.99 | 7.93 | 8.05 | NASDAQ | 2,877,032 | 64,733 | ||||||||||||||||||||||||||||||
MDNB | MINDEN BANCORP, INC | LA | 321,557 | 48,115 | 48,115 | 1.35 | 1.35 | 8.86 | 9.24 | OTC BB | 2,352,000 | 51,979 | ||||||||||||||||||||||||||||||
BHBK | BLUE HILLS BANCORP | MA | 2,115,087 | 398,830 | 386,890 | 0.38 | 0.30 | 1.81 | 1.44 | NASDAQ | 27,990,192 | 382,626 | ||||||||||||||||||||||||||||||
BRKL | BROOKLINE BANCORP, INC | MA | 6,060,940 | 673,486 | 524,963 | 0.84 | 0.89 | 7.39 | 8.02 | NASDAQ | 70,396,856 | 775,069 | ||||||||||||||||||||||||||||||
BLMT | BSB BANCORP INC | MA | 1,812,927 | 146,203 | 145,724 | 0.43 | 0.43 | 4.73 | 4.89 | NASDAQ | 9,091,090 | 204,277 | ||||||||||||||||||||||||||||||
CBNK | CHICOPEE BANCORP, INC | MA | 677,303 | 78,951 | 78,759 | 0.49 | 0.49 | 4.05 | 4.20 | NASDAQ | 5,222,339 | 92,122 | ||||||||||||||||||||||||||||||
GTWN | GEORGETOWN BANCORP, INC | MA | 296,502 | 29,339 | 28,821 | 0.55 | 0.54 | 5.35 | 5.40 | NASDAQ | 1,840,920 | 36,818 | ||||||||||||||||||||||||||||||
HIFS | HINGHAM INSTITUTION FOR SAVINGS | MA | 1,768,566 | 138,015 | 138,015 | 1.17 | 1.16 | 14.02 | 14.84 | NASDAQ | 2,124,000 | 252,990 | ||||||||||||||||||||||||||||||
MTGB | MEETINGHOUSE BANCORP INC | MA | 122,416 | 9,364 | 9,044 | 0.30 | 0.30 | 3.80 | 4.08 | OTC BB | 668,919 | 11,037 |
113
KELLER & COMPANY Dublin, Ohio 614-766-1426 | Page 3 |
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES | ||||||||||||||||||||||||||||||||||||||||
State | Total Assets ($000) | Total Equity ($000) | Total Tang. Equity ($000) | ROAA (%) | Core ROAA (%) | ROAE (%) | Core ROAE (%) | Exchange | Number of Shares Outstg. | Mkt. Value of Shares ($000) | ||||||||||||||||||||||||||||||||
EBSB | MERIDIAN BANCORP, INC | MA | 3,524,708 | 588,126 | 574,100 | 0.72 | 0.68 | 4.18 | 3.95 | NASDAQ | 53,896,720 | 750,242 | ||||||||||||||||||||||||||||||
PLRM | PILGRIM BANCSHARES, INC | MA | 210,320 | 22,078 | 22,078 | 0.35 | 0.34 | 3.18 | 3.15 | OTC BB | 2,189,489 | 28,441 | ||||||||||||||||||||||||||||||
PVBC | PROVIDENT BANCORP, INC | MA | 743,651 | 97,128 | 97,128 | 0.54 | 0.65 | 3.89 | 5.31 | NASDAQ | 9,498,722 | 125,668 | ||||||||||||||||||||||||||||||
WEBK | WELLESLEY BANCORP INC | MA | 619,593 | 56,998 | 56,837 | 0.58 | 0.58 | 5.87 | 6.55 | NASDAQ | 2,458,553 | 47,204 | ||||||||||||||||||||||||||||||
WFD | WESTFIELD FINANCIAL INC | MA | 1,339,930 | 139,466 | 139,466 | 0.43 | 0.35 | 4.10 | 3.27 | NASDAQ | 18,267,747 | 153,997 | ||||||||||||||||||||||||||||||
BYBK | BAY BANCORP, INC | MD | 491,129 | 67,859 | 65,235 | 0.43 | 0.42 | 3.05 | 3.02 | NASDAQ | 11,062,932 | 53,323 | ||||||||||||||||||||||||||||||
IFSB | COLOMBO BANK | MD | 202,639 | 19,968 | 19,968 | 0.01 | (0.19 | ) | 0.08 | (1.90 | ) | OTC PINK | 1,552,000 | 543 | ||||||||||||||||||||||||||||
FRTR | FRATERNITY COMMUNITY BANCORP, INC | MD | 161,119 | 23,320 | 23,320 | (0.30 | ) | (0.26 | ) | (2.06 | ) | (1.79 | ) | OTC BB | 1,381,082 | 26,379 | ||||||||||||||||||||||||||
HBK | HAMILTON BANCORP, INC | MD | 362,439 | 50,587 | 43,466 | 0.21 | 0.15 | 1.31 | 1.02 | NASDAQ | 3,418,113 | 45,495 | ||||||||||||||||||||||||||||||
MBCQ | MADISON BANK OF MARYLAND | MD | 134,288 | 24,982 | 24,982 | (0.62 | ) | (0.65 | ) | (3.52 | ) | (3.63 | ) | OTC PINK | 1,999,000 | 25,187 | ||||||||||||||||||||||||||
SVBI | SEVERN BANCORP, INC | MD | 761,935 | 86,456 | 85,499 | 0.59 | 0.62 | 5.25 | 5.59 | NASDAQ | 10,088,879 | 50,949 | ||||||||||||||||||||||||||||||
EGDW | EDGEWATER BANCORP, INC | MI | 135,353 | 12,615 | 12,206 | 0.28 | 0.28 | 2.89 | 2.94 | OTC BB | 667,898 | 9,017 | ||||||||||||||||||||||||||||||
FFNM | FIRST FED OF NO MICHIGAN BANCORP | MI | 335,740 | 32,398 | 30,776 | 1.11 | 1.51 | 11.32 | 16.02 | NASDAQ | 3,727,014 | 26,685 | ||||||||||||||||||||||||||||||
FBC | FLAGSTAR BANCORP, INC | MI | 13,714,830 | 1,528,043 | 1,231,926 | 1.34 | 1.37 | 10.34 | 11.14 | NYSE | 56,557,895 | 1,213,732 | ||||||||||||||||||||||||||||||
STBI | STURGIS BANCORP, INC | MI | 368,464 | 35,260 | 27,756 | 0.78 | 0.75 | 7.56 | 7.48 | OTC BB | 2,077,791 | 21,983 | ||||||||||||||||||||||||||||||
WBKC | WOLVERINE BANCORP, INC | MI | 417,766 | 60,021 | 59,953 | 0.88 | 0.88 | 5.53 | 5.51 | NASDAQ | 2,152,334 | 54,885 | ||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL, INC | MN | 641,901 | 74,565 | 72,673 | 0.60 | 0.62 | 4.87 | 5.07 | NASDAQ | 4,482,893 | 50,477 | ||||||||||||||||||||||||||||||
REDW | REDWOOD FINANCIAL, INC | MN | 249,697 | 30,408 | 26,181 | 1.11 | 1.05 | 8.79 | 8.50 | OTC PINK | 446,980 | 15,796 | ||||||||||||||||||||||||||||||
WEFP | WELLS FINANCIAL CORP | MN | 274,675 | 28,931 | �� | 26,783 | 1.90 | 1.97 | 17.32 | 18.97 | OTC PINK | 794,253 | 25,416 | |||||||||||||||||||||||||||||
CCFC | CCSB FINANCIAL CORP | MO | 92,208 | 10,224 | 10,203 | 0.14 | (0.02 | ) | 1.25 | (0.21 | ) | OTC PINK | 917,000 | 9,629 | ||||||||||||||||||||||||||||
FBSI | FIRST BANCSHARES, INC | MO | 213,111 | 17,867 | 17,867 | 1.38 | 1.42 | 15.79 | 17.74 | OTC PINK | 1,550,815 | 13,973 | ||||||||||||||||||||||||||||||
LXMO | LEXINGTON B & L FINANCIAL CORP | MO | 118,724 | 14,837 | 14,048 | 0.44 | 0.47 | 3.53 | 3.86 | OTC PINK | 610,000 | 17,690 | ||||||||||||||||||||||||||||||
LBCP | LIBERTY BANCORP, INC | MO | 435,841 | 49,008 | 45,735 | 1.01 | 1.09 | 9.20 | 8.53 | OTC BB | 3,600,000 | 58,140 | ||||||||||||||||||||||||||||||
NASB | NASB FINANCIAL, INC | MO | 1,598,898 | 200,898 | 192,047 | 1.59 | 1.56 | 11.48 | 11.24 | OTC BB | 7,867,614 | 251,764 | ||||||||||||||||||||||||||||||
PULB | PULASKI FINANCIAL CORP | MO | 1,645,736 | 124,002 | 120,028 | 0.92 | 0.92 | 11.41 | 11.86 | NASDAQ | 11,974,158 | 193,383 | ||||||||||||||||||||||||||||||
QRRY | QUARRY CITY S&L ASSOC | MO | 51,021 | 8,218 | 7,911 | 0.42 | 0.42 | 2.58 | 2.61 | OTC BB | 407,691 | 4,933 | ||||||||||||||||||||||||||||||
ASBB | ASB BANCORP, INC | NC | 781,735 | 84,122 | 84,122 | 0.51 | 0.46 | 4.63 | 4.12 | NASDAQ | 3,985,475 | 96,608 | ||||||||||||||||||||||||||||||
ENFC | ENTEGRA FINANCIAL CORP | NC | 1,031,416 | 131,469 | 127,824 | 2.46 | 2.36 | 18.12 | 19.11 | NASDAQ | 6,498,698 | 112,882 | ||||||||||||||||||||||||||||||
KSBI | KS BANCORP, INC | NC | 337,186 | 32,788 | 32,788 | 0.50 | 0.46 | 4.95 | 4.63 | OTC BB | 1,300,000 | 15,353 |
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PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES | ||||||||||||||||||||||||||||||||||||||||
State | Total Assets ($000) | Total Equity ($000) | Total Tang. Equity ($000) | ROAA (%) | Core ROAA (%) | ROAE (%) | Core ROAE (%) | Exchange | Number of Shares Outstg. | Mkt. Value of Shares ($000) | ||||||||||||||||||||||||||||||||
LSFG | LIFESTORE FINANCIAL GROUP | NC | 266,267 | 27,277 | 26,390 | 0.53 | 0.47 | 5.08 | 4.64 | OTC PINK | 1,050,800 | 16,760 | ||||||||||||||||||||||||||||||
LTLB | LITTLE BANK, SSB | NC | 362,331 | 34,655 | 34,655 | 0.89 | 0.88 | 9.01 | 9.23 | OTC PINK | 3,270,000 | 40,875 | ||||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | NE | 222,509 | 26,518 | 25,549 | 0.71 | 0.72 | 5.63 | 6.60 | NASDAQ | 3,173,523 | 26,182 | ||||||||||||||||||||||||||||||
MCBK | MADISON COUNTY FINANCIAL, INC | NE | 360,353 | 62,437 | 59,242 | 1.12 | 1.08 | 6.06 | 6.25 | NASDAQ | 2,966,982 | 58,776 | ||||||||||||||||||||||||||||||
GUAA | GUARANTY BANCORP, INC | NH | 436,704 | 39,460 | 39,317 | 0.60 | 0.52 | 6.47 | 5.50 | OTC PINK | 22,812,293 | 422,027 | ||||||||||||||||||||||||||||||
LFGP | LEDYARD FINANCIAL GROUP, INC | NH | 445,890 | 41,086 | 41,086 | 0.95 | 0.95 | 10.22 | 10.30 | OTC PINK | 1,028,780 | 47,530 | ||||||||||||||||||||||||||||||
LSBG | NEW HAMPSHIRE THRIFT BANCSHARES | NH | 1,518,317 | 136,708 | 81,869 | 0.60 | 0.59 | 6.60 | 6.43 | NASDAQ | 8,381,419 | 117,172 | ||||||||||||||||||||||||||||||
CBNJ | CAPE BANCORP, INC | NJ | 1,603,275 | 168,381 | 143,396 | 0.91 | 1.00 | 7.22 | 8.71 | NASDAQ | 13,549,983 | 182,112 | ||||||||||||||||||||||||||||||
CSBK | CLIFTON BANCORP INC | NJ | 1,167,935 | 333,956 | 333,956 | 0.68 | 0.56 | 2.41 | 1.92 | NASDAQ | 25,831,756 | 390,576 | ||||||||||||||||||||||||||||||
DLNO | DELANCO BANCORP, INC | NJ | 130,030 | 12,760 | 12,760 | (0.16 | ) | 0.13 | (1.60 | ) | 1.33 | OTC PINK | 945,425 | 8,556 | ||||||||||||||||||||||||||||
KRNY | KEARNY FINANCIAL CORP | NJ | 4,405,046 | 1,166,476 | 1,057,160 | 0.33 | 0.35 | 0.63 | 1.33 | NASDAQ | 66,936,040 | 826,660 | ||||||||||||||||||||||||||||||
MSBF | MSB FINANCIAL CORP | NJ | 375,742 | 54,183 | 54,183 | 0.16 | 0.06 | 1.04 | 0.47 | NASDAQ | 5,953,834 | 76,507 | ||||||||||||||||||||||||||||||
NFBK | NORTHFIELD BANCORP, INC | NJ | 3,202,482 | 559,886 | 543,548 | 0.63 | 0.62 | 3.49 | 3.35 | NASDAQ | 48,287,468 | 793,846 | ||||||||||||||||||||||||||||||
OSHC | OCEAN SHORE HOLDING COMPANY | NJ | 1,043,379 | 111,789 | 106,719 | 0.66 | 0.66 | 6.14 | 6.31 | NASDAQ | 6,411,678 | 112,333 | ||||||||||||||||||||||||||||||
OCFC | OCEANFIRST FINANCIAL CORP | NJ | 2,598,879 | 238,446 | 235,778 | 0.82 | 0.81 | 8.52 | 8.82 | NASDAQ | 17,294,735 | 305,771 | ||||||||||||||||||||||||||||||
ORIT | ORITANI FINANCIAL CORP | NJ | 3,513,119 | 518,419 | 518,419 | 1.62 | 0.82 | 10.56 | 5.42 | NASDAQ | 45,198,765 | 767,023 | ||||||||||||||||||||||||||||||
PFS | PROVIDENT FINANCIAL SERVICES, INC | NJ | 8,911,657 | 1,196,219 | 769,942 | 0.96 | 0.95 | 7.00 | 7.08 | NYSE | 65,794,731 | 1,328,396 | ||||||||||||||||||||||||||||||
AF | ASTORIA FINANCIAL CORP | NY | 15,076,211 | 1,663,448 | 1,467,283 | 0.57 | 0.57 | 5.29 | 5.40 | NYSE | 101,404,957 | 1,606,255 | ||||||||||||||||||||||||||||||
CARV | CARVER BANCORP, INC | NY | 754,966 | 55,068 | 54,863 | 0.05 | (0.09 | ) | 0.59 | (1.18 | ) | NASDAQ | 3,696,087 | 19,294 | ||||||||||||||||||||||||||||
DCOM | DIME COMMUNITY BANCSHARES, INC | NY | 5,032,872 | 493,947 | 438,070 | 0.94 | 0.92 | 9.06 | 9.22 | NASDAQ | 37,371,992 | 658,494 | ||||||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | NY | 561,485 | 54,772 | 40,590 | 0.74 | 0.71 | 7.53 | 7.11 | NASDAQ | 2,644,000 | 47,618 | ||||||||||||||||||||||||||||||
GOVB | GOUVERNEUR BANCORP, INC | NY | 140,310 | 29,083 | 29,083 | 0.89 | 0.91 | 4.32 | 4.50 | OTC PINK | 2,380,000 | 32,178 | ||||||||||||||||||||||||||||||
PFDB | PATRIOT FEDERAL BANK | NY | 129,343 | 12,034 | 11,853 | 0.28 | 0.26 | 2.94 | 2.81 | OTC PINK | 957,440 | 6,702 | ||||||||||||||||||||||||||||||
SCAY | SENECA-CAYUGA BANCORP, INC | NY | 280,791 | 24,417 | 24,054 | 0.43 | 0.23 | 4.87 | 2.52 | OTC PINK | 2,380,000 | 25,752 | ||||||||||||||||||||||||||||||
SNNY | SUNNYSIDE BANCORP INC | NY | 91,784 | 11,332 | 11,332 | (0.10 | ) | (0.20 | ) | (0.80 | ) | (1.58 | ) | OTC BB | 793,500 | 9,125 | ||||||||||||||||||||||||||
TRST | TRUSTCO BANK CORP NY | NY | 4,734,675 | 413,310 | 412,757 | 0.90 | 0.89 | 10.22 | 10.37 | NASDAQ | 95,368,575 | 577,934 | ||||||||||||||||||||||||||||||
ASBN | ASB FINANCIAL CORP | OH | 256,743 | 28,138 | 25,135 | 0.78 | 0.79 | 7.03 | 7.31 | OTC PINK | 1,979,034 | 24,738 | ||||||||||||||||||||||||||||||
CFBK | CENTRAL FEDERAL CORP | OH | 347,664 | 37,745 | 37,734 | 0.94 | 0.94 | 8.21 | 8.60 | NASDAQ | 16,024,210 | 21,633 | ||||||||||||||||||||||||||||||
CHEV | CHEVIOT FINANCIAL CORP | OH | 571,795 | 88,650 | 76,761 | 0.27 | 0.29 | 1.76 | 1.90 | NASDAQ | 6,802,944 | 99,935 |
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PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES | ||||||||||||||||||||||||||||||||||||||||
State | Total Assets ($000) | Total Equity ($000) | Total Tang. Equity ($000) | ROAA (%) | Core ROAA (%) | ROAE (%) | Core ROAE (%) | Exchange | Number of Shares Outstg. | Mkt. Value of Shares ($000) | ||||||||||||||||||||||||||||||||
CIBN | COMMUNITY INVESTORS BANCORP, INC | OH | 140,522 | 11,959 | 11,474 | 0.80 | 0.80 | 9.11 | 9.45 | OTC PINK | 525,000 | 6,773 | ||||||||||||||||||||||||||||||
FDEF | FIRST DEFIANCE FINANCIAL CORP | OH | 2,297,966 | 280,197 | 207,280 | 1.18 | 1.20 | 9.43 | 9.57 | NASDAQ | 8,938,777 | 343,338 | ||||||||||||||||||||||||||||||
FNFI | FIRST NILES FINANCIAL, INC | OH | 98,306 | 11,978 | 11,978 | 0.29 | 0.09 | 2.36 | 0.69 | OTC PINK | 1,140,000 | 9,291 | ||||||||||||||||||||||||||||||
HCFL | HOME CITY FINANCIAL CORP | OH | 153,014 | 16,439 | 16,439 | 0.91 | 0.94 | 8.47 | 9.10 | OTC PINK | 802,466 | 14,549 | ||||||||||||||||||||||||||||||
HLFN | HOME LOAN FINANCIAL CORP | OH | 196,819 | 21,680 | 21,508 | 1.65 | 1.63 | 14.23 | 14.47 | OTC BB | 1,396,506 | 29,019 | ||||||||||||||||||||||||||||||
PPSF | PEOPLES-SIDNEY FINANCIAL CORP | OH | 113,843 | 14,908 | 14,908 | 0.45 | 0.46 | 3.44 | 3.47 | OTC PINK | 1,245,410 | 10,275 | ||||||||||||||||||||||||||||||
PFOH | PERPETUAL FEDERAL SAVINGS BANK | OH | 362,813 | 64,958 | 64,958 | 1.41 | 1.40 | 7.70 | 7.87 | OTC PINK | 2,470,000 | 49,400 | ||||||||||||||||||||||||||||||
UCFC | UNITED COMMUNITY FINANCIAL CORP | OH | 1,990,875 | 244,245 | 238,568 | 0.85 | 0.86 | 6.67 | 6.80 | NASDAQ | 47,634,899 | 279,617 | ||||||||||||||||||||||||||||||
VERF | VERSAILLES FINANCIAL CORP | OH | 54,985 | 10,190 | 10,190 | 0.47 | 0.47 | 2.46 | 2.46 | OTC BB | 392,044 | 6,665 | ||||||||||||||||||||||||||||||
MWBC | WATCH HILL BANK | OH | 119,324 | 14,085 | 14,050 | 0.23 | 0.23 | 1.75 | 2.16 | OTC PINK | 876,160 | 12,958 | ||||||||||||||||||||||||||||||
WAYN | WAYNE SAVINGS BANCSHARES, INC | OH | 434,010 | 38,952 | 36,864 | 0.42 | 0.44 | 4.60 | 4.84 | NASDAQ | 2,781,839 | 34,356 | ||||||||||||||||||||||||||||||
BNCL | BENEFICIAL BANCORP, INC | PA | 4,830,265 | 1,115,546 | 987,835 | 0.95 | 0.96 | 2.05 | 4.17 | NASDAQ | 75,426,531 | 1,032,589 | ||||||||||||||||||||||||||||||
ESSA | ESSA BANCORP, INC | PA | 1,763,414 | 170,028 | 152,576 | 0.55 | 0.51 | 5.38 | 4.98 | NASDAQ | 11,412,821 | 153,959 | ||||||||||||||||||||||||||||||
FXCB | FOX CHASE BANCORP, INC | PA | 1,125,646 | 176,914 | 176,810 | 0.86 | 0.87 | 5.40 | 5.47 | NASDAQ | 11,767,590 | 227,350 | ||||||||||||||||||||||||||||||
HARL | HARLEYSVILLE SAVINGS FIN CORP | PA | 774,722 | 64,451 | 64,451 | 0.72 | 0.69 | 8.66 | 8.49 | OTC PINK | 3,747,031 | 71,194 | ||||||||||||||||||||||||||||||
MLVF | MALVERN BANCORP, INC | PA | 721,087 | 69,221 | 68,833 | 0.73 | 0.62 | 6.94 | 6.15 | NASDAQ | 6,560,713 | 105,103 | ||||||||||||||||||||||||||||||
NWBI | NORTHWEST BANCSHARES INC | PA | 9,006,768 | 1,163,163 | 890,774 | 0.72 | 0.73 | 5.20 | 5.51 | NASDAQ | 101,775,187 | 1,374,983 | ||||||||||||||||||||||||||||||
PBCP | POLONIA BANCORP, INC | PA | 292,071 | 32,621 | 32,475 | (0.01 | ) | (0.12 | ) | (0.06 | ) | (1.11 | ) | OTC BB | 3,348,827 | 35,832 | ||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP, INC | PA | 522,101 | 96,280 | 96,280 | 0.48 | 0.08 | 2.59 | 0.42 | NASDAQ | 8,612,938 | 123,337 | ||||||||||||||||||||||||||||||
QNTO | QUAINT OAK BANCORP INC | PA | 182,786 | 17,612 | 17,567 | 0.79 | 0.82 | 7.55 | 8.15 | OTC PINK | 1,855,223 | 22,263 | ||||||||||||||||||||||||||||||
STND | STANDARD FINANCIAL CORP | PA | 466,245 | 72,058 | 63,149 | 0.84 | 0.83 | 5.32 | 5.26 | NASDAQ | 3,410,573 | 82,877 | ||||||||||||||||||||||||||||||
UASB | UNITED-AMERICAN SAVINGS BANK | PA | 89,839 | 7,958 | 7,958 | 0.76 | 0.77 | 8.61 | 9.09 | OTC BB | 298,000 | 12,665 | ||||||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | PA | 329,341 | 30,402 | 30,402 | 0.46 | 0.46 | 4.71 | 4.68 | NASDAQ | 2,057,930 | 23,358 | ||||||||||||||||||||||||||||||
CWAY | COASTWAY BANCORP, INC | RI | 554,776 | 53,470 | 53,234 | 0.32 | 0.40 | 3.05 | 3.87 | NASDAQ | 4,799,179 | 60,134 | ||||||||||||||||||||||||||||||
FCPB | FIRST CAPITAL BANCSHARES, INC | SC | 51,831 | 7,806 | 7,806 | 0.67 | 0.73 | 4.51 | 4.98 | OTC PINK | 563,720 | 3,343 | ||||||||||||||||||||||||||||||
FSGB | FIRST FEDERAL OF SOUTH CAROLINA | SC | 73,869 | 4,447 | 4,183 | 0.21 | 0.24 | 3.40 | 3.99 | OTC PINK | 1,012,755 | 3,038 | ||||||||||||||||||||||||||||||
HFFC | HF FINANCIAL CORP | SD | 1,171,885 | 107,601 | 92,342 | 0.66 | 0.68 | 7.45 | 7.95 | NASDAQ | 7,042,296 | 126,761 | ||||||||||||||||||||||||||||||
CASH | META FINANCIAL GROUP, INC | SD | 2,960,239 | 289,577 | 220,231 | 0.73 | 0.74 | 6.40 | 7.96 | NASDAQ | 6,948,391 | 316,847 | ||||||||||||||||||||||||||||||
AFCB | ATHENS BANCSHARES CORP | TN | 323,518 | 39,527 | 39,484 | 1.00 | 1.01 | 7.89 | 8.40 | NASDAQ | 1,808,575 | 46,987 |
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KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES | ||||||||||||||||||||||||||||||||||||||||
State | Total Assets ($000) | Total Equity ($000) | Total Tang. Equity ($000) | ROAA (%) | Core ROAA (%) | ROAE (%) | Core ROAE (%) | Exchange | Number of Shares Outstg. | Mkt. Value of Shares ($000) | ||||||||||||||||||||||||||||||||
FABK | FIRST ADVANTAGE BANCORP | TN | 487,591 | 62,476 | 62,476 | 0.73 | 0.70 | 5.40 | 5.30 | NASDAQ | 3,900,660 | 64,166 | ||||||||||||||||||||||||||||||
SFBK | SFB BANCORP, INC | TN | 62,492 | 13,678 | 13,541 | 1.17 | 1.12 | 5.13 | 5.01 | OTC PINK | 570,522 | 19,968 | ||||||||||||||||||||||||||||||
UNTN | UNITED TENNESSEE BANKSHARES | TN | 196,608 | 20,223 | 20,223 | 0.87 | 0.85 | 8.34 | 8.36 | OTC PINK | 838,809 | 18,454 | ||||||||||||||||||||||||||||||
BAFI | BANCAFFILIATED, INC | TX | 575,144 | 54,353 | 51,894 | 1.58 | 1.54 | 15.62 | 15.94 | OTC PINK | 278,450 | 20,884 | ||||||||||||||||||||||||||||||
TBK | TRIUMPH BANCORP, INC | TX | 1,691,313 | 268,038 | 240,184 | 1.86 | 1.87 | 10.87 | 11.59 | NASDAQ | 18,018,089 | 285,226 | ||||||||||||||||||||||||||||||
ANCB | ANCHOR BANCORP, INC | WA | 398,920 | 57,555 | 57,313 | 0.35 | 0.54 | 2.39 | 3.55 | NASDAQ | 2,457,633 | 59,671 | ||||||||||||||||||||||||||||||
FFNW | FIRST FINANCIAL NORTHWEST, INC | WA | 979,913 | 170,673 | 170,673 | 0.96 | 0.91 | 5.37 | 4.95 | NASDAQ | 13,578,600 | 178,830 | ||||||||||||||||||||||||||||||
FSBW | FS BANCORP, INC | WA | 677,524 | 78,740 | 72,929 | 1.51 | 1.50 | 11.28 | 13.12 | NASDAQ | 3,149,396 | 79,333 | ||||||||||||||||||||||||||||||
HMST | HOMESTREET, INC | WA | 4,894,380 | 465,275 | 274,178 | 0.98 | 0.94 | 8.88 | 10.36 | NASDAQ | 24,550,297 | 510,892 | ||||||||||||||||||||||||||||||
RVSB | RIVERVIEW BANCORP, INC | WA | 883,640 | 124,515 | 98,557 | 0.80 | 0.85 | 5.48 | 5.92 | NASDAQ | 22,507,890 | 94,533 | ||||||||||||||||||||||||||||||
SFBC | SOUND FINANCIAL BANCORP, INC | WA | 540,175 | 53,483 | 49,748 | 0.95 | 0.98 | 9.17 | 9.84 | NASDAQ | 2,481,389 | 56,824 | ||||||||||||||||||||||||||||||
TSBK | TIMBERLAND BANCORP, INC | WA | 837,379 | 91,051 | 83,926 | 1.15 | 1.18 | 9.99 | 10.68 | NASDAQ | 7,053,636 | 89,158 | ||||||||||||||||||||||||||||||
ABCW | ANCHOR BANCORP WISCONSIN, INC | WI | 2,248,498 | 366,641 | 347,699 | NM | NM | NM | NM | NASDAQ | 21,247,725 | 957,422 | ||||||||||||||||||||||||||||||
BKMU | BANK MUTUAL CORP | WI | 2,502,297 | 279,394 | 272,189 | 0.59 | 0.59 | 5.07 | 5.09 | NASDAQ | 45,575,567 | 345,007 | ||||||||||||||||||||||||||||||
HWIS | HOME BANCORP WISCONSIN, INC | WI | 139,348 | 11,185 | 11,185 | (0.35 | ) | (0.21 | ) | (4.07 | ) | (2.38 | ) | OTC PINK | 899,190 | 8,407 | ||||||||||||||||||||||||||
WSBF | WATERSTONE FINANCIAL, INC | WI | 1,761,716 | 391,930 | 389,907 | 0.94 | 0.94 | 4.23 | 3.94 | NASDAQ | 29,137,029 | 398,595 | ||||||||||||||||||||||||||||||
WBB | WESTBURY BANCORP, INC | WI | 668,453 | 70,087 | 68,951 | 0.70 | 1.53 | 6.22 | 13.79 | NASDAQ | 4,229,061 | 80,352 | ||||||||||||||||||||||||||||||
CRZY | CRAZY WOMAN CREEK BANCORP | WY | 106,394 | 11,115 | 10,983 | 0.68 | 0.69 | 6.53 | 6.74 | OTC PINK | 632,385 | 7,525 |
117
KELLER & COMPANY Dublin, Ohio 614-766-1426 | Page 7 |
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES | ||||||||||||||||||||||||||||||||||||
Total Assets ($000) | Total Equity ($000) | Total Tang. Equity ($000) | ROAA (%) | Core ROAA (%) | ROAE (%) | Core ROAE (%) | Exchange | Number of Shares Outstg. | Mkt. Value of Shares ($000) | |||||||||||||||||||||||||||||
ALL INSTITUTIONS |
| |||||||||||||||||||||||||||||||||||||
AVERAGE | 1,416,303 | 168,220 | 149,490 | 0.72 | 0.71 | 6.06 | 6.18 | 12,815,813 | 192,016 | |||||||||||||||||||||||||||||
MEDIAN | 435,841 | 54,183 | 50,843 | 0.72 | 0.71 | 5.48 | 5.51 | 3,149,396 | 51,979 | |||||||||||||||||||||||||||||
HIGH | 26,601,026 | 1,868,321 | 1,484,409 | 3.91 | 3.51 | 19.61 | 19.75 | 138,421,120 | 1,889,979 | |||||||||||||||||||||||||||||
LOW | 51,021 | 3,140 | 3,140 | (1.44 | ) | (1.46 | ) | (10.92 | ) | (13.26 | ) | 278,450 | 155 | |||||||||||||||||||||||||
AVERAGE FOR STATE |
| |||||||||||||||||||||||||||||||||||||
IL | 314,848 | 38,916 | 38,043 | 0.06 | 103.33 | 0.00 | 0.59 | 3,030,361 | 40,064 | |||||||||||||||||||||||||||||
AVERAGE BY REGION |
| |||||||||||||||||||||||||||||||||||||
MID-ATLANTIC | 2,146,257 | 289,153 | 252,697 | 0.54 | 0.49 | 4.35 | 4.14 | 21,912,177 | 321,261 | |||||||||||||||||||||||||||||
MIDWEST | 761,945 | 93,632 | 84,199 | 0.71 | 0.72 | 5.95 | 6.38 | 6,427,071 | 101,285 | |||||||||||||||||||||||||||||
NORTH CENTRAL | 1,278,993 | 162,395 | 154,744 | 0.91 | 0.91 | 7.83 | 8.16 | 12,746,914 | 200,349 | |||||||||||||||||||||||||||||
NORTHEAST | 1,720,978 | 193,383 | 173,136 | 0.57 | 0.56 | 5.50 | 5.61 | 16,768,002 | 239,886 | |||||||||||||||||||||||||||||
SOUTHEAST | 1,863,209 | 151,686 | 129,058 | 0.70 | 0.70 | 5.76 | 5.91 | 10,496,872 | 150,577 | |||||||||||||||||||||||||||||
SOUTHWEST | 501,953 | 501,953 | 64,302 | 1.16 | 1.15 | 9.15 | 9.46 | 3,865,332 | 69,072 | |||||||||||||||||||||||||||||
WEST | 1,481,685 | 160,136 | 143,011 | 1.07 | 1.09 | 8.75 | 8.56 | 14,022,165 | 219,065 | |||||||||||||||||||||||||||||
AVERAGE BY EXCHANGE |
| |||||||||||||||||||||||||||||||||||||
NYSE | 16,075,931 | 1,564,008 | 1,238,390 | 0.85 | 0.86 | 7.41 | 7.73 | 87,251,182 | 1,509,591 | |||||||||||||||||||||||||||||
NASDAQ | 1,753,380 | 226,429 | 206,436 | 0.80 | 0.79 | 6.39 | 6.53 | 19,064,681 | 272,981 | |||||||||||||||||||||||||||||
OTC BB | 293,627 | 34,515 | 33,227 | 0.70 | 0.69 | 5.73 | 5.82 | 1,955,489 | 34,475 | |||||||||||||||||||||||||||||
OTC PINK | 229,621 | 24,169 | 23,475 | 0.57 | 0.56 | 5.52 | 5.65 | 1,766,602 | 28,526 |
118
KELLER & COMPANY
Dublin, Ohio
614-766-1426
EXHIBIT 33
RECENT SECOND STAGE CONVERSIONS
JANUARY 1, 2015, THROUGH MAY 16, 2016
PRICE CHANGES FROM IPO DATE
Percentage Price Change From Initial Trading Date | ||||||||||||||||||||||||||
Company Name | Ticker | Conversion Date | Exchange | One Day | One Week | One Month | Through 5/16/16 | |||||||||||||||||||
Beneficial Bancorp | BNCL | 1/13/2015 | NASDAQ | 9.50 | % | 8.20 | % | 15.10 | % | 36.90 | % | |||||||||||||||
Equitable Financial Corp. | EQFN | 7.9/2015 | Pink Sheet | 7.25 | 5.63 | 2.34 | 8.80 | |||||||||||||||||||
Kerany Financial Corp. | KRNY | 5/19/2015 | NASDAQ | 8.00 | 9.02 | 14.10 | 0.18 | |||||||||||||||||||
MSB Financial Corp | MSFB | 7.17/2015 | NASDAQ | 19.00 | 16.40 | 16.00 | 34.72 | |||||||||||||||||||
AVERAGE | 10.94 | % | 9.81 | % | 11.88 | % | 20.15 | % | ||||||||||||||||||
MEDIAN | 8.75 | % | 8.61 | % | 14.60 | % | 21.76 | % |
119
EXHIBIT 34
KELLER & COMPANY
Dublin, Ohio
614-766-1426
RECENT ACQUISITIONS AND PENDING ACQUISITIONS
COUNTY, CITY OR MARKET AREA OF OTTAWA SAVINGS BANK
NONE
(that were potential comparable group candidates)
120
EXHIBIT 35
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
BALANCE SHEET PARAMETERS
Most Recent Quarter
General Parameters: | ||||||||||||||||||||||||||||||||||||
Regions: Mid-Atlantic, Midwest and North Central | ||||||||||||||||||||||||||||||||||||
Asset Size: < $800 Million | ||||||||||||||||||||||||||||||||||||
No Recent Acquisition Activity | ||||||||||||||||||||||||||||||||||||
Total Assets ($000) | Cash & Securities/ Assets (%) | MBS/ Assets (%) | 1-4 Fam. Loans/ Assets (%) | Total Net Loans/ Assets (%) | Total Net Loans & MBS/ Assets (%) | Borrowed Funds/ Assets (%) | Equity/ Assets (%) | |||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | IL | 216,565 | 11.95 | 13.52 | 41.99 | 66.84 | 80.36 | 0.53 | 14.33 | |||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP | < 800,000 | < 25.00 | <25.00 | <55.00 | | 50.00 - 90.00 | | | 60.00 - 90.00 | | < 20.00 | | 8.00 - 20.00 | | ||||||||||||||||||||||
AJSB | AJS BANCORP | IL | 208,493 | 19.43 | 19.06 | 48.05 | 54.88 | 73.94 | 2.89 | 14.17 | ||||||||||||||||||||||||||
AFBA | ALLIED FIRST BANCORP | IL | 114,257 | 24.85 | 9.77 | 26.84 | 52.23 | 62.00 | 0.88 | 6.59 | ||||||||||||||||||||||||||
BFFI | BEN FRANKLIN FINANCIAL | IL | 84,057 | 28.36 | 0.65 | 36.11 | 68.45 | 69.10 | 0.75 | 10.21 | ||||||||||||||||||||||||||
FIRT | FIRST BANCTRUST CORP | IL | 449,541 | 6.91 | 9.20 | 17.77 | 77.54 | 86.74 | 8.45 | 10.03 | ||||||||||||||||||||||||||
GTPS | GREAT AMERICAN BANCORP | IL | 182,009 | 40.29 | 0.14 | 29.68 | 54.21 | 54.35 | 2.20 | 9.16 | ||||||||||||||||||||||||||
HARI | HARVARD BANCSHARES | IL | 213,943 | 18.43 | 19.76 | 22.05 | 54.89 | 74.65 | 0.00 | 11.04 | ||||||||||||||||||||||||||
IROQ | IF BANCORP | IL | 559,884 | 16.91 | 4.97 | 26.70 | 73.90 | 78.87 | 12.56 | 12.19 | ||||||||||||||||||||||||||
JXSB | JACKSONVILLE BANCORP | IL | 308,611 | 23.05 | 7.51 | 18.26 | 62.55 | 70.06 | 4.97 | 13.75 | ||||||||||||||||||||||||||
MCPH | MIDLAND CAPITAL HOLDINGS CORP | IL | 119,541 | 43.43 | 3.08 | 42.52 | 48.80 | 51.88 | 0.00 | 9.30 | ||||||||||||||||||||||||||
OTTW | OTTAWA SAVINGS BANCORP | IL | 213,563 | 13.22 | 12.99 | 42.42 | 65.61 | 78.60 | 1.13 | 14.28 | ||||||||||||||||||||||||||
PFED | PARK BANCORP | IL | 142,559 | 20.84 | 9.78 | 39.12 | 52.53 | 62.31 | 18.24 | 2.20 | ||||||||||||||||||||||||||
RYFL | ROYAL FINANCIAL | IL | 202,282 | 18.03 | 0.00 | 22.37 | 74.25 | 74.25 | 0.00 | 17.31 | ||||||||||||||||||||||||||
SUGR | SUGAR CREEK FINANCIAL CORP | IL | 96,690 | 16.55 | 0.00 | 73.28 | 80.08 | 80.08 | 5.64 | 11.31 | ||||||||||||||||||||||||||
AMFC | AMB FINANCIAL CORP. | IN | 189,757 | 7.12 | 2.98 | 39.57 | 80.81 | 83.79 | 0.40 | 9.53 | ||||||||||||||||||||||||||
DSFN | DSA FINANCIAL CORP | IN | 116,268 | 18.40 | 0.01 | 51.23 | 74.25 | 74.26 | 4.30 | 14.12 | ||||||||||||||||||||||||||
FFWC | FFW CORP | IN | 332,498 | 18.42 | 8.43 | 29.54 | 66.37 | 74.80 | �� | 2.18 | 10.42 | |||||||||||||||||||||||||
FDLB | FIDELITY FEDERAL BANCORP | IN | 378,839 | 21.37 | 36.86 | 10.81 | 27.72 | 64.58 | 8.60 | 11.49 | ||||||||||||||||||||||||||
FBPI | FIRST BANCORP OF INDIANA | IN | 401,058 | 17.55 | 12.21 | 18.99 | 60.65 | 72.86 | 24.44 | 10.31 | ||||||||||||||||||||||||||
FCAP | FIRST CAPITAL | IN | 713,067 | 36.36 | 7.20 | 19.82 | 50.37 | 57.57 | 0.01 | 10.05 | ||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | IN | 738,899 | 18.59 | 9.55 | 26.05 | 62.31 | 71.86 | 13.60 | 10.38 |
121
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
BALANCE SHEET PARAMETERS
Most Recent Quarter
General Parameters: | ||||||||||||||||||||||||||||||||||||
Regions: Mid-Atlantic, Midwest and North Central Asset Size: < $800 Million No Recent Acquisition Activity | ||||||||||||||||||||||||||||||||||||
Total Assets ($000) | Cash & Securities/ Assets (%) | MBS/ Assets (%) | 1-4 Fam. Loans/ Assets (%) | Total Net Loans/ Assets (%) | Total Net Loans & MBS/ Assets (%) | Borrowed Funds/ Assets (%) | Equity/ Assets (%) | |||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | IL | 216,565 | 11.95 | 13.52 | 41.99 | 66.84 | 80.36 | 0.53 | 14.33 | |||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP | < 800,000 | < 25.00 | <25.00 | <55.00 |
| 50.00 - 90.00 |
| | 60.00 - 90.00 | | < 20.00 |
| 8.00 - 20.00 |
| ||||||||||||||||||||||
LPSB | LAPORTE BANCORP | IN | 534,447 | 18.53 | 8.66 | 11.28 | 63.91 | 72.57 | 10.85 | 14.31 | ||||||||||||||||||||||||||
LOGN | LOGANSPORT FINANCIAL CORP. | IN | 172,544 | 21.51 | 9.02 | 20.52 | 65.56 | 74.58 | 4.64 | 12.65 | ||||||||||||||||||||||||||
TDCB | THIRD CENTURY BANCORP | IN | 126,852 | 13.16 | 3.35 | 37.22 | 77.54 | 80.89 | 12.61 | 11.51 | ||||||||||||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | IN | 507,670 | 20.76 | 20.28 | 28.09 | 51.87 | 72.15 | 2.90 | 12.09 | ||||||||||||||||||||||||||
WEIN | WEST END INDIANA BANCSHARES | IN | 270,726 | 5.89 | 6.99 | 23.32 | 80.96 | 87.95 | 9.97 | 9.90 | ||||||||||||||||||||||||||
PBSK | POAGE BANKSHARES | KY | 434,606 | 13.54 | 7.13 | 44.20 | 72.28 | 79.41 | 4.16 | 15.62 | ||||||||||||||||||||||||||
BYBK | BAY BANCORP | MD | 491,129 | 10.80 | 3.31 | 28.75 | 79.71 | 83.02 | 10.59 | 13.82 | ||||||||||||||||||||||||||
IFSB | COLOMBO BANK | MD | 202,639 | 11.90 | 5.89 | 46.16 | 79.65 | 85.54 | 17.28 | 9.85 | ||||||||||||||||||||||||||
FRTR | FRATERNITY COMMUNITY BANCORP | MD | 161,119 | 17.51 | 6.33 | 57.87 | 69.88 | 76.21 | 12.41 | 14.47 | ||||||||||||||||||||||||||
HBK | HAMILTON BANCORP | MD | 362,439 | 13.14 | 16.06 | 31.40 | 62.26 | 78.32 | 5.32 | 13.96 | ||||||||||||||||||||||||||
MBCQ | MADISON BANK OF MARYLAND | MD | 134,288 | 20.86 | 4.23 | 57.17 | 69.35 | 73.58 | 10.11 | 18.60 | ||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | MD | 761,935 | 11.09 | 4.60 | 45.06 | 77.41 | 82.01 | 15.55 | 11.35 | ||||||||||||||||||||||||||
EGDW | EDGEWATER BANCORP | Ml | 135,353 | 14.33 | 2.39 | 35.17 | 79.02 | 81.41 | 5.91 | 9.32 | ||||||||||||||||||||||||||
FFNM | FIRST FED OF NO MICHIGAN BANCORP | Ml | 335,740 | 24.20 | 19.33 | 23.69 | 50.05 | 69.38 | 9.81 | 9.65 | ||||||||||||||||||||||||||
STBI | STURGIS BANCORP | Ml | 368,464 | 18.48 | 3.11 | 30.30 | 68.89 | 72.00 | 12.21 | 9.57 | ||||||||||||||||||||||||||
WBKC | WOLVERINE BANCORP | Ml | 417,766 | 22.11 | 0.00 | 17.76 | 75.31 | 75.31 | 17.00 | 14.37 | ||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | MN | 641,901 | 23.29 | 0.36 | 19.44 | 72.13 | 72.49 | 0.00 | 11.62 | ||||||||||||||||||||||||||
REDW | REDWOOD FINANCIAL | MN | 249,697 | 15.71 | 4.18 | 18.81 | 70.94 | 75.12 | 5.25 | 12.18 | ||||||||||||||||||||||||||
WEFP | WELLS FINANCIAL CORP. | MN | 274,675 | 16.75 | 6.93 | 26.31 | 71.94 | 78.87 | 0.00 | 10.53 | ||||||||||||||||||||||||||
CCFC | CCSB FINANCIAL CORP. | MO | 92,208 | 23.70 | 0.00 | 38.25 | 66.21 | 66.21 | 4.34 | 11.09 |
122
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
BALANCE SHEET PARAMETERS
Most Recent Quarter
General Parameters: | ||||||||||||||||||||||||||||||||||||
Regions: Mid-Atlantic, Midwest and North Central Asset Size: < $800 Million No Recent Acquisition Activity |
| |||||||||||||||||||||||||||||||||||
Total Assets ($000) | Cash & Securities/ Assets (%) | MBS/ Assets (%) | 1-4 Fam. Loans/ Assets (%) | Total Net Loans/ Assets (%) | Total Net Loans & MBS/ Assets (%) | Borrowed Funds/ Assets (%) | Equity/ Assets (%) | |||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | IL | 216,565 | 11.95 | 13.52 | 41.99 | 66.84 | 80.36 | 0.53 | 14.33 | |||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP | < 800,000 | < 25.00 | <25.00 | <55.00 |
| 50.00 - 90.00 |
| | 60.00 - 90.00 | | < 20.00 |
| 8.00 - 20.00 |
| ||||||||||||||||||||||
FBSI | FIRST BANCSHARES | MO | 213,111 | 16.71 | 18.40 | 25.64 | 58.43 | 76.83 | 8.04 | 8.38 | ||||||||||||||||||||||||||
LXMO | LEXINGTON B & L FINANCIAL CORP. | MO | 118,724 | 15.61 | 18.62 | 36.89 | 60.08 | 78.70 | 0.72 | 12.50 | ||||||||||||||||||||||||||
LBCP | LIBERTY BANCORP | MO | 435,841 | 7.09 | 2.51 | 19.89 | 78.92 | 81.43 | 6.07 | 11.24 | ||||||||||||||||||||||||||
QRRY | QUARRY CITY SAVINGS & LOAN ASSN | MO | 51,021 | 21.47 | 0.00 | 45.63 | 74.01 | 74.01 | 0.00 | 16.11 | ||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | NE | 222,509 | 9.61 | 0.44 | 23.68 | 84.79 | 85.23 | 0.72 | 11.92 | ||||||||||||||||||||||||||
MCBK | MADISON COUNTY FINANCIAL | NE | 360,353 | 16.87 | 0.00 | 12.54 | 76.47 | 76.47 | 11.85 | 17.33 | ||||||||||||||||||||||||||
DLNO | DELANCO BANCORP | NJ | 130,030 | 26.02 | 0.70 | 53.00 | 64.34 | 65.04 | 2.31 | 9.81 | ||||||||||||||||||||||||||
MSBF | MSB FINANCIAL CORP | NJ | 375,742 | 17.25 | 7.04 | 45.09 | 69.85 | 76.89 | 9.30 | 14.42 | ||||||||||||||||||||||||||
CARV | CARVER BANCORP | NY | 754,966 | 12.64 | 4.70 | 19.53 | 79.04 | 83.74 | 9.93 | 7.29 | ||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | NY | 561,485 | 6.31 | 3.87 | 54.73 | 79.67 | 83.54 | 10.60 | 9.75 | ||||||||||||||||||||||||||
GOVB | GOUVERNEUR BANCORP | NY | 140,310 | 15.85 | 0.42 | 61.10 | 74.78 | 75.20 | 15.86 | 20.73 | ||||||||||||||||||||||||||
PFDB | PATRIOT FEDERAL BANK | NY | 129,343 | 12.77 | 7.63 | 41.00 | 75.64 | 83.27 | 8.66 | 9.30 | ||||||||||||||||||||||||||
SCAY | SENECA-CAYUGA BANCORP | NY | 280,791 | 12.18 | 2.83 | 35.59 | 71.92 | 74.75 | 17.98 | 8.70 | ||||||||||||||||||||||||||
SNNY | SUNNYSIDE BANCORP INC | NY | 91,784 | 16.91 | 25.70 | 35.97 | 51.31 | 77.01 | 0.55 | 12.35 | ||||||||||||||||||||||||||
ASBN | ASB FINANCIAL CORP | OH | 256,743 | 7.41 | 5.01 | 50.63 | 79.18 | 84.19 | 10.71 | 10.96 | ||||||||||||||||||||||||||
CFBK | CENTRAL FEDERAL CORP | OH | 347,664 | 9.82 | 0.24 | 18.91 | 85.45 | 85.69 | 4.17 | 10.86 | ||||||||||||||||||||||||||
CHEV | CHEVIOT FINANCIAL CORP | OH | 571,795 | 23.47 | 1.31 | 35.33 | 65.23 | 66.54 | 2.42 | 15.50 | ||||||||||||||||||||||||||
CIBN | COMMUNITY INVESTORS BANCORP | OH | 140,522 | 14.96 | 1.16 | 55.86 | 74.83 | 75.99 | 27.54 | 8.51 | ||||||||||||||||||||||||||
FNFI | FIRST NILES FINANCIAL | OH | 98,306 | 42.89 | 24.61 | 18.95 | 26.29 | 50.90 | 26.96 | 12.18 | ||||||||||||||||||||||||||
HCFL | HOME CITY FINANCIAL CORP | OH | 153,014 | 4.42 | 4.62 | 56.43 | 83.47 | 88.09 | 15.73 | 10.74 |
123
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
BALANCE SHEET PARAMETERS
Most Recent Quarter
General Parameters: | ||||||||||||||||||||
Regions: Mid-Atlantic, Midwest and North Central | ||||||||||||||||||||
Asset Size: < $800 Million | ||||||||||||||||||||
No Recent Acquisition Activity |
Total Assets ($000) | Cash & Securities/ Assets (%) | MBS/ Assets (%) | 1-4 Fam. Loans/ Assets (%) | Total Net Loans/ Assets (%) | Total Net Loans & MBS/ Assets (%) | Borrowed Funds/ Assets (%) | Equity/ Assets (%) | |||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | IL | 216,565 | 11.95 | 13.52 | 41.99 | 66.84 | 80.36 | 0.53 | 14.33 | |||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP | < 800,000 | < 25.00 | <25.00 | <55.00 | | 50.00 - 90.00 | |
| 60.00 - 90.00 |
| < 20.00 | | 8.00 - 20.00 | | ||||||||||||||||||||||
HLFN | HOME LOAN FINANCIAL CORP | OH | 196,819 | 7.80 | 0.00 | 45.00 | 86.41 | 86.41 | 14.65 | 11.02 | ||||||||||||||||||||||||||
PPSF | PEOPLES-SIDNEY FINANCIAL CORP | OH | 113,843 | 26.36 | 0.00 | 48.94 | 70.36 | 70.36 | 1.33 | 13.10 | ||||||||||||||||||||||||||
PFOH | PERPETUAL FEDERAL SAVINGS BANK | OH | 362,813 | 10.91 | 0.00 | 43.68 | 87.54 | 87.54 | 3.58 | 17.90 | ||||||||||||||||||||||||||
VERF | VERSAILLES FINANCIAL CORP | OH | 54,985 | 19.67 | 0.44 | 55.51 | 75.09 | 75.53 | 11.39 | 18.53 | ||||||||||||||||||||||||||
MWBC | WATCH HILL BANK | OH | 119,324 | 9.54 | 3.44 | 58.79 | 77.26 | 80.70 | 19.91 | 11.80 | ||||||||||||||||||||||||||
WAYN | WAYNE SAVINGS BANCSHARES | OH | 434,010 | 8.64 | 17.84 | 38.22 | 67.59 | 85.43 | 6.23 | 8.97 | ||||||||||||||||||||||||||
HARL | HARLEYSVILLE SAVINGS FIN CORP | PA | 774,722 | 7.97 | 18.78 | 42.21 | 68.39 | 87.17 | 24.12 | 8.32 | ||||||||||||||||||||||||||
MLVF | MALVERN BANCORP | PA | 721,087 | 25.73 | 5.13 | 36.63 | 64.00 | 69.13 | 14.53 | 9.60 | ||||||||||||||||||||||||||
PBCP | POLONIA BANCORP | PA | 292,071 | 22.22 | 12.65 | 53.09 | 58.95 | 71.60 | 19.17 | 11.17 | ||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | PA | 522,101 | 15.20 | 19.24 | 49.94 | 61.65 | 80.89 | 7.17 | 18.44 | ||||||||||||||||||||||||||
QNTO | QUAINT OAK BANCORP INC | PA | 182,786 | 12.76 | 1.64 | 44.24 | 78.40 | 80.04 | 7.39 | 9.64 | ||||||||||||||||||||||||||
STND | STANDARD FINANCIAL CORP | PA | 466,245 | 11.38 | 5.37 | 53.81 | 75.88 | 81.25 | 13.62 | 15.45 | ||||||||||||||||||||||||||
UASB | UNITED-AMERICAN SAVINGS BANK | PA | 89,839 | 15.06 | 8.43 | 58.48 | 72.86 | 81.29 | 8.17 | 8.86 | ||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | PA | 329,341 | 32.20 | 46.16 | 13.72 | 17.55 | 63.71 | 46.44 | 9.23 | ||||||||||||||||||||||||||
HWIS | HOME BANCORP WISCONSIN | Wl | 139,348 | 7.40 | 3.82 | 38.66 | 80.73 | 84.55 | 10.15 | 8.03 | ||||||||||||||||||||||||||
WBB | WESTBURY BANCORP | Wl | 668,453 | 10.39 | 8.48 | 23.09 | 74.28 | 82.76 | 5.10 | 10.48 |
124
EXHIBIT 36
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
OPERATING PERFORMANCE AND ASSET QUALITY RATIOS
Most Recent Four Quarters
General Parameters: | ||
Regions: Mid-Atlantic, Midwest and North Central | ||
Asset Size: < $800 Million | ||
No Recent Acquisition Activity |
OPERATING PERFORMANCE | ASSET QUALITY | |||||||||||||||||||||||||||||||||||||||
Total Assets ($000) | Core ROAA (%) | Core ROAE (%) | Net Interest Margin (2) (%) | Operating Expenses/ Assets (%) | Noninterest Income/ Assets (%) | NPA/ Assets (%) | REO/ Assets (%) | Reserves/ Assets (%) | ||||||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | IL | 216,565 | 0.38 | 2.71 | 3.57 | 3.20 | 0.59 | 2.46 | 0.15 | 1.01 | ||||||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP | < 800,000 | < 1.00 | < 9.00 |
| 2.75- 4.75 |
|
| 1.75- 4.50 |
| < 1.10 | < 3.00 | < 0.50 | > 0.30 | |||||||||||||||||||||||||||
AJSB | AJS BANCORP | IL | 208,493 | 0.09 | 0.62 | 2.29 | 2.35 | 0.27 | 0.78 | 0.15 | 0.47 | |||||||||||||||||||||||||||||
AFBA | ALLIED FIRST BANCORP | IL | 114,257 | 0.74 | 11.88 | 2.88 | 27.68 | 26.18 | 2.59 | 0.82 | 0.82 | |||||||||||||||||||||||||||||
BFFI | BEN FRANKLIN FINANCIAL | IL | 84,057 | (1.25 | ) | (13.26 | ) | 3.12 | 4.65 | 0.38 | 1.87 | 0.57 | 1.18 | |||||||||||||||||||||||||||
FIRT | FIRST BANCTRUST CORP | IL | 449,541 | 0.75 | 7.49 | 3.60 | 2.70 | 0.66 | 0.48 | 0.05 | 1.01 | |||||||||||||||||||||||||||||
GTPS | GREAT AMERICAN BANCORP | IL | 182,009 | 0.33 | 3.69 | 2.91 | 3.89 | 1.86 | 1.37 | 0.84 | 0.57 | |||||||||||||||||||||||||||||
HARI | HARVARD BANCSHARES | IL | 213,943 | 0.65 | 5.96 | 3.67 | 3.15 | 0.47 | 0.73 | 0.23 | 0.60 | |||||||||||||||||||||||||||||
IROQ | IF BANCORP | IL | 559,884 | 0.56 | 4.66 | 3.04 | 2.45 | 0.62 | 0.65 | 0.03 | 0.90 | |||||||||||||||||||||||||||||
JXSB | JACKSONVILLE BANCORP | IL | 308,611 | 0.97 | 7.18 | 3.58 | 3.25 | 1.27 | 0.76 | 0.11 | 0.95 | |||||||||||||||||||||||||||||
MCPH | MIDLAND CAPITAL HOLDINGS CORP | IL | 119,541 | (0.02 | ) | (0.21 | ) | 2.82 | 3.01 | 0.30 | 1.93 | 0.55 | 0.36 | |||||||||||||||||||||||||||
OTTW | OTTAWA SAVINGS BANCORP | IL | 213,563 | 0.36 | 2.62 | 3.52 | 3.13 | 0.48 | 2.51 | 0.15 | 1.04 | |||||||||||||||||||||||||||||
PFED | PARK BANCORP | IL | 142,559 | (1.46 | ) | NM | 2.96 | 5.02 | 0.59 | 4.59 | 2.18 | 1.81 | ||||||||||||||||||||||||||||
RYFL | ROYAL FINANCIAL | IL | 202,282 | 3.51 | 19.57 | 3.74 | 2.22 | 3.01 | 0.22 | 0.05 | 0.69 | |||||||||||||||||||||||||||||
SUGR | SUGAR CREEK FINANCIAL CORP | IL | 96,690 | 0.10 | 0.84 | 2.82 | 2.53 | 0.13 | 0.65 | 0.41 | 0.21 | |||||||||||||||||||||||||||||
AMFC | AMB FINANCIAL CORP. | IN | 189,757 | 0.78 | 8.08 | 4.04 | 2.80 | 0.50 | 0.61 | 0.07 | 1.00 | |||||||||||||||||||||||||||||
DSFN | DSA FINANCIAL CORP | IN | 116,268 | 0.72 | 4.96 | 3.21 | 2.30 | 0.32 | 0.40 | 0.00 | 0.73 | |||||||||||||||||||||||||||||
FFWC | FFW CORP | IN | 332,498 | 1.02 | 10.05 | 3.75 | 3.08 | 1.05 | 1.88 | 0.58 | 1.05 | |||||||||||||||||||||||||||||
FDLB | FIDELITY FEDERAL BANCORP | IN | 378,839 | 2.19 | 19.75 | 3.78 | 3.08 | 3.45 | 2.93 | 2.10 | 0.43 | |||||||||||||||||||||||||||||
FBPI | FIRST BANCORP OF INDIANA | IN | 401,058 | 0.49 | 4.75 | 3.04 | 2.94 | 0.83 | 1.46 | 0.60 | 0.59 | |||||||||||||||||||||||||||||
FCAP | FIRST CAPITAL | IN | 713,067 | 0.89 | 8.26 | 3.20 | 2.15 | 0.73 | 1.55 | 0.69 | 0.48 | |||||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | IN | 738,899 | 0.97 | 9.40 | 3.73 | 2.79 | 0.79 | 0.75 | 0.09 | 0.90 |
125
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
OPERATING PERFORMANCE AND ASSET QUALITY RATIOS
Most Recent Four Quarters
General Parameters: | ||
Regions: Mid-Atlantic, Midwest and North Central | ||
Asset Size: < $800 Million | ||
No Recent Acquisition Activity |
OPERATING PERFORMANCE | ASSET QUALITY | |||||||||||||||||||||||||||||||||||||||
Total Assets ($000) | Core ROAA (%) | Core ROAE (%) | Net Interest Margin (2) (%) | Operating Expenses/ Assets (%) | Noninterest Income/ Assets (%) | NPA/ Assets (%) | REO/ Assets (%) | Reserves/ Assets (%) | ||||||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | IL | 216,565 | 0.38 | 2.71 | 3.57 | 3.20 | 0.59 | 2.46 | 0.15 | 1.01 | ||||||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP | < 800,000 | < 1.00 | < 9.00 |
| 2.75- 4.75 |
|
| 1.75- 4.50 |
| < 1.10 | < 3.00 | < 0.50 | > 0.30 | |||||||||||||||||||||||||||
LPSB | LAPORTE BANCORP | IN | 534,447 | 0.70 | 4.90 | 3.35 | 2.58 | 0.53 | 0.85 | 0.41 | 0.68 | |||||||||||||||||||||||||||||
LOGN | LOGANSPORT FINANCIAL CORP. | IN | 172,544 | 1.15 | 8.91 | 3.91 | 2.29 | 0.31 | 0.62 | 0.02 | 1.00 | |||||||||||||||||||||||||||||
TDCB | THIRD CENTURY BANCORP | IN | 126,852 | 0.64 | 5.28 | 3.50 | 3.27 | 0.38 | 0.66 | 0.60 | 0.98 | |||||||||||||||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | IN | 507,670 | 0.68 | 5.46 | 2.81 | 2.67 | 0.81 | 1.09 | 0.04 | 0.94 | |||||||||||||||||||||||||||||
WEIN | WEST END INDIANA BANCSHARES | IN | 270,726 | 0.75 | 7.43 | 4.49 | 3.03 | 0.59 | 1.79 | 0.30 | 0.81 | |||||||||||||||||||||||||||||
PBSK | POAGE BANKSHARES | KY | 434,606 | 0.78 | 5.00 | 4.30 | 3.36 | 0.66 | 1.34 | 0.30 | 0.43 | |||||||||||||||||||||||||||||
BYBK | BAY BANCORP | MD | 491,129 | 0.42 | 3.02 | 4.72 | 4.50 | 0.99 | 1.97 | 0.30 | 0.36 | |||||||||||||||||||||||||||||
IFSB | COLOMBO BANK | MD | 202,639 | (0.19 | ) | (1.90 | ) | 3.29 | 3.91 | 0.39 | 1.94 | 0.23 | 1.66 | |||||||||||||||||||||||||||
FRTR | FRATERNITY COMMUNITY BANCORP | MD | 161,119 | (0.26 | ) | (1.79 | ) | 2.67 | 2.62 | 0.14 | 0.79 | 0.00 | 0.96 | |||||||||||||||||||||||||||
HBK | HAMILTON BANCORP | MD | 362,439 | 0.15 | 1.02 | 2.98 | 2.42 | 0.28 | 1.55 | 0.12 | 0.56 | |||||||||||||||||||||||||||||
MBCQ | MADISON BANK OF MARYLAND | MD | 134,288 | (0.65 | ) | (3.63 | ) | 2.62 | 3.17 | 0.16 | 1.38 | 0.00 | 1.16 | |||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | MD | 761,935 | 0.62 | 5.59 | 3.12 | 3.15 | 0.81 | 1.37 | 0.23 | 1.15 | |||||||||||||||||||||||||||||
EGDW | EDGEWATER BANCORP | Ml | 135,353 | 0.28 | 2.94 | 3.51 | 3.52 | 0.66 | 1.17 | 0.19 | 0.79 | |||||||||||||||||||||||||||||
FFNM | FIRST FED OF NO MICHIGAN BANCORP | Ml | 335,740 | 1.51 | 16.02 | 3.05 | 2.93 | 0.56 | 0.76 | 0.11 | 0.46 | |||||||||||||||||||||||||||||
STBI | STURGIS BANCORP | Ml | 368,464 | 0.75 | 7.48 | 3.64 | 3.77 | 1.61 | 1.22 | 0.22 | 0.87 | |||||||||||||||||||||||||||||
WBKC | WOLVERINE BANCORP | Ml | 417,766 | 0.88 | 5.51 | 3.38 | 1.79 | 0.25 | 1.59 | 0.03 | 2.41 | |||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | MN | 641,901 | 0.62 | 5.07 | 3.48 | 3.38 | 1.05 | 1.08 | 0.32 | 1.51 | |||||||||||||||||||||||||||||
REDW | REDWOOD FINANCIAL | MN | 249,697 | 1.05 | 8.50 | 4.55 | 3.20 | 1.03 | 0.50 | 0.04 | 1.13 | |||||||||||||||||||||||||||||
WEFP | WELLS FINANCIAL CORP. | MN | 274,675 | 1.97 | 18.97 | 3.70 | 3.25 | 2.26 | 1.35 | 0.59 | 0.72 | |||||||||||||||||||||||||||||
CCFC | CCSB FINANCIAL CORP. | MO | 92,208 | (0.02 | ) | (0.21 | ) | 3.51 | 3.68 | 0.75 | 0.07 | 0.07 | 1.66 |
126
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
OPERATING PERFORMANCE AND ASSET QUALITY RATIOS
Most Recent Four Quarters
General Parameters: | ||||||||||||||||||||||||||||||||||||||||
Regions: Mid-Atlantic, Midwest and North Central |
| |||||||||||||||||||||||||||||||||||||||
Asset Size: < $800 Million | ||||||||||||||||||||||||||||||||||||||||
No Recent Acquisition Activity | ||||||||||||||||||||||||||||||||||||||||
OPERATING PERFORMANCE | ASSET QUALITY | |||||||||||||||||||||||||||||||||||||||
Total Assets ($000) | Core ROAA (%) | Core ROAE (%) | Net Interest Margin (2) (%) | Operating Expenses/ Assets (%) | Noninterest Income/ Assets (%) | NPA/ Assets (%) | REO/ Assets (%) | Reserves/ Assets (%) | ||||||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | IL | 216,565 | 0.38 | 2.71 | 3.57 | 3.20 | 0.59 | 2.46 | 0.15 | 1.01 | ||||||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP | < 800,000 | < 1.00 | < 9.00 |
| 2.75- 4.75 |
|
| 1.75- 4.50 |
| < 1.10 | < 3.00 | < 0.50 | > 0.30 | |||||||||||||||||||||||||||
FBSI | FIRST BANCSHARES | MO | 213,111 | 1.42 | 17.74 | 2.92 | 2.64 | 0.38 | 0.05 | 0.00 | 0.80 | |||||||||||||||||||||||||||||
LXMO | LEXINGTON B & L FINANCIAL CORP. | MO | 118,724 | 0.47 | 3.86 | 2.91 | 2.70 | 0.42 | 1.32 | 0.08 | 1.26 | |||||||||||||||||||||||||||||
LBCP | LIBERTY BANCORP | MO | 435,841 | 1.09 | 8.53 | 4.50 | 3.41 | 0.90 | 1.96 | 1.87 | 1.25 | |||||||||||||||||||||||||||||
QRRY | QUARRY CITY SAVINGS & LOAN ASSN | MO | 51,021 | 0.42 | 2.61 | 3.77 | 3.43 | 0.56 | 0.55 | 0.00 | 0.95 | |||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | NE | 222,509 | 0.72 | 6.60 | 3.43 | 3.25 | 0.99 | 1.15 | 0.15 | 1.27 | |||||||||||||||||||||||||||||
MCBK | MADISON COUNTY FINANCIAL | NE | 360,353 | 1.08 | 6.25 | 3.75 | 2.11 | 0.60 | 0.14 | 0.00 | 2.43 | |||||||||||||||||||||||||||||
DLNO | DELANCO BANCORP | NJ | 130,030 | 0.13 | 1.33 | 3.18 | 2.98 | (0.07 | ) | 3.54 | 1.66 | 0.90 | ||||||||||||||||||||||||||||
MSBF | MSB FINANCIAL CORP | NJ | 375,742 | 0.06 | 0.47 | 2.99 | 2.62 | 0.19 | 1.65 | 0.00 | 0.96 | |||||||||||||||||||||||||||||
CARV | CARVER BANCORP | NY | 754,966 | (0.09 | ) | (1.18 | ) | 3.18 | 3.47 | 0.86 | 1.78 | 0.13 | 0.69 | |||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | NY | 561,485 | 0.71 | 7.11 | 3.13 | 2.60 | 0.91 | 0.88 | 0.03 | 0.74 | |||||||||||||||||||||||||||||
GOVB | GOUVERNEUR BANCORP | NY | 140,310 | 0.91 | 4.50 | 4.38 | 3.18 | 0.50 | 1.94 | 0.33 | 0.73 | |||||||||||||||||||||||||||||
PFDB | PATRIOT FEDERAL BANK | NY | 129,343 | 0.26 | 2.81 | 3.59 | 3.02 | 0.41 | 0.75 | 0.10 | 1.20 | |||||||||||||||||||||||||||||
SCAY | SENECA-CAYUGA BANCORP | NY | 280,791 | 0.23 | 2.52 | 3.91 | 3.52 | 0.81 | 1.50 | 0.18 | 0.79 | |||||||||||||||||||||||||||||
SNNY | SUNNYSIDE BANCORP INC | NY | 91,784 | (0.20 | ) | (1.58 | ) | 2.75 | 3.00 | 0.21 | 0.32 | 0.00 | 0.50 | |||||||||||||||||||||||||||
ASBN | ASB FINANCIAL CORP | OH | 256,743 | 0.79 | 7.31 | 3.71 | 3.52 | 1.22 | 0.89 | 0.17 | 0.60 | |||||||||||||||||||||||||||||
CFBK | CENTRAL FEDERAL CORP | OH | 347,664 | 0.94 | 8.60 | 3.12 | 2.67 | 0.37 | 0.93 | 0.47 | 1.90 | |||||||||||||||||||||||||||||
CHEV | CHEVIOT FINANCIAL CORP | OH | 571,795 | 0.29 | 1.90 | 2.86 | 2.35 | 0.48 | 0.78 | 0.29 | 0.62 | |||||||||||||||||||||||||||||
CIBN | COMMUNITY INVESTORS BANCORP | OH | 140,522 | 0.80 | 9.45 | 4.21 | 4.82 | 2.59 | 1.92 | 0.06 | 1.07 | |||||||||||||||||||||||||||||
FNFI | FIRST NILES FINANCIAL | OH | 98,306 | 0.09 | 0.69 | 2.03 | 1.90 | 0.13 | 1.37 | 0.40 | 0.26 | |||||||||||||||||||||||||||||
HCFL | HOME CITY FINANCIAL CORP | OH | 153,014 | 0.94 | 9.10 | 3.63 | 2.34 | 0.31 | 0.59 | 0.12 | 1.71 |
127
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
OPERATING PERFORMANCE AND ASSET QUALITY RATIOS
Most Recent Four Quarters
General Parameters: | ||||||||||||||||||||||||||||||||||||||||
Regions: Mid-Atlantic, Midwest and North Central |
| |||||||||||||||||||||||||||||||||||||||
Asset Size: < $800 Million | ||||||||||||||||||||||||||||||||||||||||
No Recent Acquisition Activity | ||||||||||||||||||||||||||||||||||||||||
OPERATING PERFORMANCE | ASSET QUALITY | |||||||||||||||||||||||||||||||||||||||
Total Assets ($000) | Core ROAA (%) | Core ROAE (%) | Net Interest Margin (2) (%) | Operating Expenses/ Assets (%) | Noninterest Income/ Assets (%) | NPA/ Assets (%) | REO/ Assets (%) | Reserves/ Assets (%) | ||||||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | IL | 216,565 | 0.38 | 2.71 | 3.57 | 3.20 | 0.59 | 2.46 | 0.15 | 1.01 | ||||||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP | < 800,000 | < 1.00 | < 9.00 |
| 2.75- 4.75 |
|
| 1.75- 4.50 |
| < 1.10 | < 3.00 | < 0.50 | > 0.30 | |||||||||||||||||||||||||||
HLFN | HOME LOAN FINANCIAL CORP | OH | 196,819 | 1.63 | 14.47 | 4.62 | 2.30 | 0.49 | 0.38 | 0.00 | 1.09 | |||||||||||||||||||||||||||||
PPSF | PEOPLES-SIDNEY FINANCIAL CORP | OH | 113,843 | 0.46 | 3.47 | 3.77 | 2.92 | 0.11 | 2.37 | 0.00 | 0.97 | |||||||||||||||||||||||||||||
PFOH | PERPETUAL FEDERAL SAVINGS BANK | OH | 362,813 | 1.40 | 7.87 | 3.15 | 0.94 | 0.02 | 1.67 | 0.01 | 1.16 | |||||||||||||||||||||||||||||
VERF | VERSAILLES FINANCIAL CORP | OH | 54,985 | 0.47 | 2.46 | 3.37 | 2.33 | 0.02 | 0.00 | 0.00 | 0.46 | |||||||||||||||||||||||||||||
MWBC | WATCH HILL BANK | OH | 119,324 | 0.23 | 2.16 | 2.59 | 2.16 | 0.15 | 0.95 | 0.09 | 1.36 | |||||||||||||||||||||||||||||
WAYN | WAYNE SAVINGS BANCSHARES | OH | 434,010 | 0.44 | 4.84 | 3.14 | 2.49 | 0.39 | 0.45 | 0.00 | 0.65 | |||||||||||||||||||||||||||||
HARL | HARLEYSVILLE SAVINGS FIN CORP | PA | 774,722 | 0.69 | 8.49 | 2.79 | 1.76 | 0.24 | 1.29 | 0.09 | 0.48 | |||||||||||||||||||||||||||||
MLVF | MALVERN BANCORP | PA | 721,087 | 0.62 | 6.15 | 2.54 | 1.85 | 0.26 | 0.27 | 0.16 | 0.63 | |||||||||||||||||||||||||||||
PBCP | POLONIA BANCORP | PA | 292,071 | (0.12 | ) | (1.11 | ) | 2.52 | 3.67 | 1.12 | 0.79 | 0.06 | 0.44 | |||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | PA | 522,101 | 0.08 | 0.42 | 2.56 | 2.43 | 0.61 | 2.88 | 0.00 | 0.56 | |||||||||||||||||||||||||||||
QNTO | QUAINT OAK BANCORP INC | PA | 182,786 | 0.82 | 8.15 | 4.01 | 3.25 | 1.04 | 1.24 | 0.77 | 0.72 | |||||||||||||||||||||||||||||
STND | STANDARD FINANCIAL CORP | PA | 466,245 | 0.83 | 5.26 | 3.00 | 2.13 | 0.56 | 0.21 | 0.07 | 0.83 | |||||||||||||||||||||||||||||
UASB | UNITED-AMERICAN SAVINGS BANK | PA | 89,839 | 0.77 | 9.09 | 3.41 | 2.54 | 0.43 | 0.56 | 0.00 | 0.41 | |||||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | PA | 329,341 | 0.46 | 4.68 | 1.79 | 1.08 | 0.17 | 0.08 | 0.00 | 0.11 | |||||||||||||||||||||||||||||
HWIS | HOME BANCORP WISCONSIN | WI | 139,348 | (0.21 | ) | (2.38 | ) | 3.32 | 3.37 | 0.27 | 0.14 | 0.00 | 1.06 | |||||||||||||||||||||||||||
WBB | WESTBURY BANCORP | WI | 668,453 | 1.53 | 13.79 | 3.38 | 3.24 | 0.94 | 0.11 | 0.03 | 0.71 |
128
EXHIBIT 37
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
FINAL COMPARABLE GROUP
BALANCE SHEET RATIOS
Most Recent Quarter
Total Assets ($000) | Cash & Securities/ Assets (%) | MBS/ Assets (%) | 1-4 Fam. Loans/ Assets (%) | Total Net Loans/ Assets (%) | Total Net Loans & MBS/ Assets (%) | Borrowed Funds/ Assets (%) | Equity/ Assets (%) | |||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | IL | 216,565 | 11.95 | 13.52 | 41.99 | 66.84 | 80.36 | 0.53 | 14.33 | |||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP | < 800,000 | < 25.00 | <25.00 | <55.00 |
| 50.00 - 90.00 |
|
| 60.00 - 90.00 |
| < 20.00 |
| 8.00 - 20.00 |
| ||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | NE | 222,509 | 9.61 | 0.44 | 23.68 | 84.79 | 85.23 | 0.72 | 11.92 | ||||||||||||||||||||||||||
CFBK | CENTRAL FEDERAL CORP | OH | 347,664 | 9.82 | 0.24 | 18.91 | 85.45 | 85.69 | 4.17 | 10.86 | ||||||||||||||||||||||||||
WBKC | WOLVERINE BANCORP | MI | 417,766 | 22.11 | 0.00 | 17.76 | 75.31 | 75.31 | 17.00 | 14.37 | ||||||||||||||||||||||||||
WAYN | WAYNE SAVINGS BANCSHARES | OH | 434,010 | 8.64 | 17.84 | 38.22 | 67.59 | 85.43 | 6.23 | 8.97 | ||||||||||||||||||||||||||
PBSK | POAGE BANKSHARES | KY | 434,606 | 13.54 | 7.13 | 44.20 | 72.28 | 79.41 | 4.16 | 15.62 | ||||||||||||||||||||||||||
BYBK | BAY BANCORP | MD | 491,129 | 10.80 | 3.31 | 28.75 | 79.71 | 83.02 | 10.59 | 13.82 | ||||||||||||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | IN | 507,670 | 20.76 | 20.28 | 28.09 | 51.87 | 72.15 | 2.90 | 12.09 | ||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | NY | 561,485 | 6.31 | 3.87 | 54.73 | 79.67 | 83.54 | 10.60 | 9.75 | ||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | MN | 641,901 | 23.29 | 0.36 | 19.44 | 72.13 | 72.49 | 0.00 | 11.62 | ||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | MD | 761,935 | 11.09 | 4.60 | 45.06 | 77.41 | 82.01 | 15.55 | 11.35 | ||||||||||||||||||||||||||
AVERAGE | 482,068 | 13.60 | 5.81 | 31.88 | 74.62 | 80.43 | 7.19 | 12.04 | ||||||||||||||||||||||||||||
MEDIAN | 462,868 | 10.94 | 3.59 | 28.42 | 76.36 | 82.52 | 5.20 | 11.77 | ||||||||||||||||||||||||||||
HIGH | 761,935 | 23.29 | 20.28 | 54.73 | 85.45 | 85.69 | 17.00 | 15.62 | ||||||||||||||||||||||||||||
LOW | 222,509 | 6.31 | 0.00 | 17.76 | 51.87 | 72.15 | 0.00 | 8.97 |
129
EXHIBIT 38
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
FINAL COMPARABLE GROUP
OPERATING PERFORMANCE AND ASSET QUALITY RATIOS
Most Recent Four Quarters
OPERATING PERFORMANCE | ASSET QUALITY | |||||||||||||||||||||||||||||||||||||||||
Total Assets ($000) | Core ROAA (%) | Core ROAE (%) | Net Interest Margin (%) | Operating Expenses/ Assets (%) | Noninterest Income/ Assets (%) | NPA/ Assets (%) | REO/ Assets (%) | Reserves/ Assets (%) | ||||||||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | IL | 216,565 | 0.38 | 2.71 | 3.57 | 3.20 | 0.59 | 2.46 | 0.15 | 1.01 | ||||||||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP | < 800,000 | < 1.00 | < 9.00 |
| 2.75- 4.75 |
|
| 1.75- 4.50 |
| < 1.10 | < 3.00 | < 0.50 | > 0.30 | |||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | NE | 222,509 | 0.72 | 6.60 | 3.43 | 3.25 | 0.99 | 1.15 | 0.15 | 1.27 | |||||||||||||||||||||||||||||||
CFBK | CENTRAL FEDERAL CORP | OH | 347,664 | 0.94 | 8.60 | 3.12 | 2.67 | 0.37 | 0.93 | 0.47 | 1.90 | |||||||||||||||||||||||||||||||
WBKC | WOLVERINE BANCORP | MI | 417,766 | 0.88 | 5.51 | 3.38 | 1.79 | 0.25 | 1.59 | 0.03 | 2.41 | |||||||||||||||||||||||||||||||
WAYN | WAYNE SAVINGS BANCSHARES | OH | 434,010 | 0.44 | 4.84 | 3.14 | 2.49 | 0.39 | 0.45 | 0.00 | 0.65 | |||||||||||||||||||||||||||||||
PBSK | POAGE BANKSHARES | KY | 434,606 | 0.78 | 5.00 | 4.30 | 3.36 | 0.66 | 1.34 | 0.30 | 0.43 | |||||||||||||||||||||||||||||||
BYBK | BAY BANCORP | MD | 491,129 | 0.42 | 3.02 | 4.72 | 4.50 | 0.99 | 1.97 | 0.30 | 0.36 | |||||||||||||||||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | IN | 507,670 | 0.68 | 5.46 | 2.81 | 2.67 | 0.81 | 1.09 | 0.04 | 0.94 | |||||||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | NY | 561,485 | 0.71 | 7.11 | 3.13 | 2.60 | 0.91 | 0.88 | 0.03 | 0.74 | |||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | MN | 641,901 | 0.62 | 5.07 | 3.48 | 3.38 | 1.05 | 1.08 | 0.32 | 1.51 | |||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | MD | 761,935 | 0.62 | 5.59 | 3.12 | 3.15 | 0.81 | 1.37 | 0.23 | 1.15 | |||||||||||||||||||||||||||||||
AVERAGE | 482,068 | 0.68 | 5.68 | 3.46 | 2.99 | 0.72 | 1.19 | 0.19 | 1.14 | |||||||||||||||||||||||||||||||||
MEDIAN | 462,868 | 0.70 | 5.49 | 3.26 | 2.91 | 0.81 | 1.12 | 0.19 | 1.05 | |||||||||||||||||||||||||||||||||
HIGH | 761,935 | 0.94 | 8.60 | 4.72 | 4.50 | 1.05 | 1.97 | 0.47 | 2.41 | |||||||||||||||||||||||||||||||||
LOW | 222,509 | 0.42 | 3.02 | 2.81 | 1.79 | 0.25 | 0.45 | 0.00 | 0.36 |
130
EXHIBIT 39
KELLER & COMPANY
Dublin, Ohio
614-766-1426
COMPARABLE GROUP CHARACTERISTICS AND BALANCE SHEET TOTALS
Most Recent Quarter | ||||||||||||||||||||||||||||||||||
Number of Offices | Exchange | Total Assets ($000) | Int. Earning Assets ($000) | Total Net Loans ($000) | Goodwill and Intang. ($000) | Total Deposits ($000) | Total Equity ($000) | |||||||||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | OTTAWA | IL | 4 | OTC PINK | 216,565 | 199,673 | 144,743 | 1,078 | 180,176 | 31,040 | ||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||
BYBK | BAY BANCORP | COLUMBIA | MD | 13 | NASDAQ | 491,129 | 459,327 | 391,468 | 2,624 | 367,509 | 67,859 | |||||||||||||||||||||||
CFBK | CENTRAL FEDERAL CORP | FAIRLAWN | OH | 4 | NASDAQ | 347,664 | 337,246 | 297,071 | 11 | 293,606 | 37,745 | |||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | ELMIRA | NY | 13 | NASDAQ | 561,485 | 508,238 | 447,359 | 14,182 | 441,849 | 54,772 | |||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | GRAND ISLAND | NE | 6 | NASDAQ | 222,509 | 211,610 | 188,658 | 969 | 193,582 | 26,518 | |||||||||||||||||||||||
HMNF | HMN FINANCIAL | ROCHESTER | MN | 13 | NASDAQ | 641,901 | 624,965 | 462,973 | 1,892 | 563,792 | 74,565 | |||||||||||||||||||||||
PBSK | POAGE BANKSHARES | ASHLAND | KY | 10 | NASDAQ | 434,606 | 404,105 | 314,143 | 2,970 | 345,547 | 67,865 | |||||||||||||||||||||||
SVBI | SEVERN BANCORP | ANNAPOLIS | MD | 0 | NASDAQ | 761,935 | 703,102 | 611,743 | 957 | 525,090 | 86,456 | |||||||||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | LAWRENCEBURG | IN | 8 | NASDAQ | 507,670 | 474,832 | 263,343 | 3,439 | 429,302 | 61,368 | |||||||||||||||||||||||
WAYN | WAYNE SAVINGS BANCSHARES | WOOSTER | OH | 11 | NASDAQ | 434,010 | 408,492 | 293,358 | 2,088 | 364,759 | 38,952 | |||||||||||||||||||||||
WBKC | WOLVERINE BANCORP | MIDLAND | Ml | 3 | NASDAQ | 417,766 | 399,849 | 314,613 | 68 | 285,079 | 60,021 | |||||||||||||||||||||||
Average | 8 | 482,068 | 453,177 | 358,473 | 2,920 | 381,012 | 57,612 | |||||||||||||||||||||||||||
Median | 9 | 462,868 | 433,910 | 314,378 | 1,990 | 366,134 | 60,695 | |||||||||||||||||||||||||||
High | 13 | 761,935 | 703,102 | 611,743 | 14,182 | 563,792 | 86,456 | |||||||||||||||||||||||||||
Low | 0 | 222,509 | 211,610 | 188,658 | 11 | 193,582 | 26,518 |
131
EXHIBIT 40
KELLER & COMPANY
Dublin, Ohio
614-766-1426
BALANCE SHEET
ASSET COMPOSITION - MOST RECENT QUARTER
As a Percent of Total Assets | ||||||||||||||||||||||||||||||||||||||||||||||
Total Assets ($000) | Cash & Invest. (%) | MBS (%) | Net Loans (%) | Loan Loss Reserves (%) | Repo- sessed Assets (%) | Goodwill & Intang. (%) | Non-Perf. Assets (%) | Interest Earning Assets (%) | Interest Bearing Liabilities (%) | Capitalized Loan Servicing (%) | ||||||||||||||||||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | 216,565 | 11.95 | 13.52 | 66.84 | 1.01 | 0.15 | 0.50 | 2.46 | 92.20 | 98.72 | 0.13 | |||||||||||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | 222,509 | 9.62 | 0.44 | 84.79 | 1.27 | 0.15 | 0.44 | 1.15 | 95.10 | 75.44 | 0.30 | ||||||||||||||||||||||||||||||||||
CFBK | CENTRAL FEDERAL CORP | 347,664 | 9.81 | 0.24 | 85.45 | 1.90 | 0.47 | 0.00 | 0.93 | 97.00 | 75.03 | 0.00 | ||||||||||||||||||||||||||||||||||
WBKC | WOLVERINE BANCORP | 417,766 | 22.11 | 0.00 | 75.31 | 2.41 | 0.03 | 0.02 | 1.59 | 95.71 | 78.73 | 0.02 | ||||||||||||||||||||||||||||||||||
WAYN | WAYNE SAVINGS BANCSHARES | 434,010 | 8.64 | 17.84 | 67.59 | 0.65 | 0.00 | 0.48 | 0.45 | 94.12 | 80.45 | 0.09 | ||||||||||||||||||||||||||||||||||
PBSK | POAGE BANKSHARES | 434,606 | 13.55 | 7.13 | 72.28 | 0.43 | 0.30 | 0.68 | 1.34 | 92.98 | 71.78 | 0.08 | ||||||||||||||||||||||||||||||||||
BYBK | BAY BANCORP | 491,129 | 10.79 | 3.31 | 79.71 | 0.36 | 0.30 | 0.53 | 1.97 | 93.52 | 64.68 | 0.00 | ||||||||||||||||||||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | 507,670 | 20.76 | 20.28 | 51.87 | 0.94 | 0.04 | 0.68 | 1.09 | 93.53 | 79.95 | 0.11 | ||||||||||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | 561,485 | 6.31 | 3.87 | 79.67 | 0.74 | 0.03 | 2.53 | 0.88 | 90.52 | 77.27 | 0.32 | ||||||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | 641,901 | 23.28 | 0.36 | 72.13 | 1.51 | 0.32 | 0.29 | 1.08 | 97.36 | 63.51 | 0.23 | ||||||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | 761,935 | 11.09 | 4.60 | 77.41 | 1.15 | 0.23 | 0.13 | 1.37 | 92.28 | 82.86 | 0.08 | ||||||||||||||||||||||||||||||||||
Average | 482,068 | 13.60 | 5.81 | 74.62 | 1.14 | 0.19 | 0.58 | 1.19 | 94.21 | 74.97 | 0.12 | |||||||||||||||||||||||||||||||||||
Median | 462,868 | 10.94 | 3.59 | 76.36 | 1.05 | 0.19 | 0.46 | 1.12 | 93.83 | 76.36 | 0.09 | |||||||||||||||||||||||||||||||||||
High | 761,935 | 23.28 | 20.28 | 85.45 | 2.41 | 0.47 | 2.53 | 1.97 | 97.36 | 82.86 | 0.32 | |||||||||||||||||||||||||||||||||||
Low | 222,509 | 6.31 | 0.00 | 51.87 | 0.36 | 0.00 | 0.00 | 0.45 | 90.52 | 63.51 | 0.00 | |||||||||||||||||||||||||||||||||||
ALL THRIFTS (164) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 1,410,758 | 14.41 | 8.12 | 70.27 | 0.84 | 0.25 | 0.58 | 1.09 | 92.85 | 76.00 | 0.13 | |||||||||||||||||||||||||||||||||||
MIDWEST THRIFTS (52) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 761,945 | 16.72 | 8.13 | 67.39 | 0.89 | 0.32 | 0.53 | 1.22 | 92.70 | 77.20 | 0.17 | |||||||||||||||||||||||||||||||||||
ILLINOIS THRIFTS (14) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 314,848 | 21.43 | 7.05 | 64.39 | 0.80 | 0.47 | 0.30 | 1.42 | 92.46 | 77.59 | 0.07 |
132
EXHIBIT 41
KELLER & COMPANY
Dublin, Ohio
614-766-1426
BALANCE SHEET COMPARISON
LIABILITIES AND EQUITY - MOST RECENT QUARTER
As a Percent of Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities ($000) | Total Equity ($000) | Total Deposits (%) | Total Borrowings (%) | Other Liabilities (%) | Preferred Equity (%) | Common Equity (%) | Acc. Other Compr. Income (%) | Retained Earnings (%) | Total Equity (%) | Tier 1 Capital (%) | Total Risk-Based Capital (%) | |||||||||||||||||||||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | 185,525 | 31,040 | 83.20 | 0.53 | 1.94 | 0.00 | 14.33 | 0.25 | 7.60 | 14.33 | 13.37 | 21.63 | ||||||||||||||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | 195,991 | 26,518 | 87.00 | 0.72 | 0.36 | 0.00 | 11.92 | (0.00 | ) | 5.55 | 11.92 | 11.71 | 14.78 | ||||||||||||||||||||||||||||||||||||
CFBK | CENTRAL FEDERAL CORP | 309,918 | 37,745 | 84.45 | 4.17 | 0.52 | 0.00 | 10.86 | (0.00 | ) | (4.80 | ) | 10.86 | 11.12 | 13.67 | |||||||||||||||||||||||||||||||||||
WBKC | WOLVERINE BANCORP | 357,745 | 60,021 | 68.24 | 17.00 | 0.40 | 0.00 | 14.37 | 0.00 | 10.99 | 14.37 | 16.09 | 20.83 | |||||||||||||||||||||||||||||||||||||
WAYN | WAYNE SAVINGS BANCSHARES | 395,058 | 38,952 | 84.04 | 7.52 | 0.75 | 0.00 | 8.97 | (0.07 | ) | 3.27 | 8.97 | 8.78 | 14.36 | ||||||||||||||||||||||||||||||||||||
PBSK | POAGE BANKSHARES | 366,741 | 67,865 | 79.51 | 4.16 | 0.72 | 0.00 | 15.62 | 0.09 | 7.70 | 15.62 | 15.31 | 24.36 | |||||||||||||||||||||||||||||||||||||
BYBK | BAY BANCORP | 423,270 | 67,859 | 74.83 | 10.59 | 0.77 | 0.00 | 13.82 | 0.12 | 2.80 | 13.82 | 13.75 | 16.58 | |||||||||||||||||||||||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | 446,302 | 61,368 | 84.56 | 2.90 | 0.45 | 0.00 | 12.09 | (0.04 | ) | 6.13 | 12.09 | 11.40 | 22.68 | ||||||||||||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | 506,713 | 54,772 | 78.69 | 12.92 | 0.95 | 1.73 | 8.03 | 0.07 | 0.62 | 9.75 | 8.05 | 13.55 | |||||||||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | 567,336 | 74,565 | 87.83 | 0.00 | 0.55 | 0.00 | 11.62 | (0.03 | ) | 2.99 | 11.62 | 11.46 | 15.35 | ||||||||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | 675,479 | 86,456 | 68.92 | 15.55 | 1.48 | 3.50 | 7.85 | 0.00 | 1.31 | 11.35 | 14.83 | 20.83 | |||||||||||||||||||||||||||||||||||||
Average | 424,455 | 57,612 | 79.81 | 7.55 | 0.70 | 0.52 | 11.51 | 0.01 | 3.66 | 12.04 | 12.25 | 17.70 | ||||||||||||||||||||||||||||||||||||||
Median | 409,164 | 60,695 | 81.78 | 5.85 | 0.64 | 0.00 | 11.77 | (0.00 | ) | 3.13 | 11.77 | 11.59 | 15.97 | |||||||||||||||||||||||||||||||||||||
High | 675,479 | 86,456 | 87.83 | 17.00 | 1.48 | 3.50 | 15.62 | 0.12 | 10.99 | 15.62 | 16.09 | 24.36 | ||||||||||||||||||||||||||||||||||||||
Low | 195,991 | 26,518 | 68.24 | 0.00 | 0.36 | 0.00 | 7.85 | (0.07 | ) | (4.80 | ) | 8.97 | 8.05 | 13.55 | ||||||||||||||||||||||||||||||||||||
ALL THRIFTS (164) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average | 1,243,221 | 167,537 | 76.27 | 10.48 | 0.83 | 0.11 | 11.90 | (0.07 | ) | 5.74 | 12.01 | 11.39 | 18.33 | |||||||||||||||||||||||||||||||||||||
MIDWEST THRIFTS (52) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average | 668,313 | 93,632 | 78.45 | 8.93 | 0.88 | 0.04 | 11.77 | (0.01 | ) | 5.50 | 11.81 | 11.33 | 18.97 | |||||||||||||||||||||||||||||||||||||
ILLINOIS THRIFTS (14) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average | 275,933 | 38,916 | 83.55 | 4.65 | 0.91 | 0.00 | 11.11 | 0.06 | 4.14 | 11.11 | 10.34 | 19.38 |
133
EXHIBIT 42
KELLER & COMPANY
Dublin, Ohio
614-766-1426
INCOME AND EXPENSE COMPARISON
TRAILING FOUR QUARTERS
($000)
Interest Income | Interest Expense | Net Interest Income | Provision for Loss | Gain (Loss) on Sale | Total Non-lnt. Income | Total Non-lnt. Expense | Net Income Before Taxes | Income Taxes | Net Income | Core Income | ||||||||||||||||||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | 8,029 | 874 | 7,155 | 225 | 15,941 | 1,287 | 6,986 | 1,231 | 344 | 886 | 827 | |||||||||||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | 7,965 | 1,169 | 6,796 | (547 | ) | 0 | 2,204 | 7,222 | 2,325 | 833 | 1,492 | 1,501 | |||||||||||||||||||||||||||||||||
CFBK | CENTRAL FEDERAL CORP | 12,414 | 2,430 | 9,984 | 250 | (12 | ) | 1,273 | 9,293 | 1,702 | (1,396 | ) | 3,098 | 3,110 | ||||||||||||||||||||||||||||||||
WBKC | WOLVERINE BANCORP | 15,821 | 3,450 | 12,371 | 800 | 0 | 1,045 | 7,493 | 5,123 | 1,804 | 3,319 | 3,319 | ||||||||||||||||||||||||||||||||||
WAYN | WAYNE SAVINGS BANCSHARES | 14,570 | 1,999 | 12,571 | 1,175 | 0 | 1,689 | 10,805 | 2,280 | 488 | 1,792 | 1,881 | ||||||||||||||||||||||||||||||||||
PBSK | POAGE BANKSHARES | 19,103 | 2,133 | 16,970 | 514 | 14 | 2,873 | 14,609 | 4,734 | 1,454 | 3,280 | 3,323 | ||||||||||||||||||||||||||||||||||
BYBK | BAY BANCORP | 23,210 | 1,827 | 21,383 | 1,143 | 290 | 4,865 | 22,114 | 3,281 | 1,208 | 2,073 | 2,034 | ||||||||||||||||||||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | 15,613 | 2,347 | 13,266 | (303 | ) | (319 | ) | 4,126 | 13,542 | 3,834 | 594 | 3,240 | 3,455 | ||||||||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | 20,734 | 5,100 | 15,634 | 630 | 284 | 5,118 | 14,604 | 5,802 | 1,675 | 4,122 | 3,917 | ||||||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | 21,511 | 937 | 20,574 | (164 | ) | 6 | 6,749 | 21,716 | 5,777 | 2,148 | 3,629 | 3,763 | |||||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | 31,153 | 8,992 | 22,161 | (280 | ) | 0 | 6,154 | 23,971 | 4,624 | 89 | 4,535 | 4,761 | |||||||||||||||||||||||||||||||||
Average | 18,209 | 3,038 | 15,171 | 322 | 26 | 3,610 | 14,537 | 3,948 | 890 | 3,058 | 3,106 | |||||||||||||||||||||||||||||||||||
Median | 17,462 | 2,240 | 14,450 | 382 | 0 | 3,500 | 14,073 | 4,229 | 1,021 | 3,260 | 3,321 | |||||||||||||||||||||||||||||||||||
High | 31,153 | 8,992 | 22,161 | 1,175 | 290 | 6,749 | 23,971 | 5,802 | 2,148 | 4,535 | 4,761 | |||||||||||||||||||||||||||||||||||
Low | 7,965 | 937 | 6,796 | (547 | ) | (319 | ) | 1,045 | 7,222 | 1,702 | (1,396 | ) | 1,492 | 1,501 | ||||||||||||||||||||||||||||||||
ALL THRIFTS (164) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 47,232 | 8,538 | 38,694 | 595 | 181 | 14,294 | 36,611 | 15,964 | 4,349 | 11,589 | 11,339 | |||||||||||||||||||||||||||||||||||
MIDWEST THRIFTS (52) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 23,921 | 3,654 | 20,266 | (756 | ) | 83 | 15,319 | 25,981 | 10,443 | 1,236 | 9,208 | 9,173 | ||||||||||||||||||||||||||||||||||
ILLINOIS THRIFTS (14) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 10,650 | 1,222 | 9,428 | (72 | ) | 72 | 4,319 | 11,181 | 2,709 | 879 | 1,829 | 1,770 |
134
EXHIBIT 43
KELLER & COMPANY
Dublin, Ohio
614-766-1426
INCOME AND EXPENSE COMPARISON
AS A PERCENTAGE OF AVERAGE ASSETS
Interest Income | Interest Expense | Net Interest Income | Provision for Loss | Gain (Loss) on Sale | Total Non-lnt. Income | Total Non-lnt. Expense | Net Income Before Taxes | Income Taxes | Net Income | Core Income | ||||||||||||||||||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | 3.67 | 0.40 | 3.27 | 0.10 | 7.29 | 0.59 | 3.20 | 0.56 | 0.16 | 0.41 | 0.38 | |||||||||||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | 3.80 | 0.56 | 3.24 | (0.26 | ) | 0.00 | 1.05 | 3.44 | 1.11 | 0.40 | 0.71 | 0.72 | |||||||||||||||||||||||||||||||||
CFBK | CENTRAL FEDERAL CORP | 3.76 | 0.74 | 3.02 | 0.08 | (0.00 | ) | 0.39 | 2.81 | 0.52 | (0.42 | ) | 0.94 | 0.94 | ||||||||||||||||||||||||||||||||
WBKC | WOLVERINE BANCORP | 4.19 | 0.91 | 3.28 | 0.21 | 0.00 | 0.28 | 1.99 | 1.36 | 0.48 | 0.88 | 0.88 | ||||||||||||||||||||||||||||||||||
WAYN | WAYNE SAVINGS BANCSHARES | 3.42 | 0.47 | 2.95 | 0.28 | 0.00 | 0.40 | 2.54 | 0.54 | 0.11 | 0.42 | 0.44 | ||||||||||||||||||||||||||||||||||
PBSK | POAGE BANKSHARES | 4.50 | 0.50 | 4.00 | 0.12 | 0.00 | 0.68 | 3.44 | 1.12 | 0.34 | 0.77 | 0.78 | ||||||||||||||||||||||||||||||||||
BYBK | BAY BANCORP | 4.78 | 0.38 | 4.40 | 0.24 | 0.06 | 1.00 | 4.55 | 0.68 | 0.25 | 0.43 | 0.42 | ||||||||||||||||||||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | 3.08 | 0.46 | 2.61 | (0.06 | ) | (0.06 | ) | 0.81 | 2.67 | 0.76 | 0.12 | 0.64 | 0.68 | ||||||||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | 3.74 | 0.92 | 2.82 | 0.11 | 0.05 | 0.92 | 2.64 | 1.05 | 0.30 | 0.74 | 0.71 | ||||||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | 3.53 | 0.15 | 3.38 | (0.03 | ) | 0.00 | 1.11 | 3.57 | 0.95 | 0.35 | 0.60 | 0.62 | |||||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | 4.05 | 1.17 | 2.88 | (0.04 | ) | 0.00 | 0.80 | 3.12 | 0.60 | 0.01 | 0.59 | 0.62 | |||||||||||||||||||||||||||||||||
Average | 3.89 | 0.63 | 3.26 | 0.07 | 0.00 | 0.74 | 3.08 | 0.87 | 0.19 | 0.67 | 0.68 | |||||||||||||||||||||||||||||||||||
Median | 3.78 | 0.53 | 3.13 | 0.09 | 0.00 | 0.81 | 2.96 | 0.85 | 0.28 | 0.68 | 0.70 | |||||||||||||||||||||||||||||||||||
High | 4.78 | 1.17 | 4.40 | 0.28 | 0.06 | 1.11 | 4.55 | 1.36 | 0.48 | 0.94 | 0.94 | |||||||||||||||||||||||||||||||||||
Low | 3.08 | 0.15 | 2.61 | (0.26 | ) | (0.06 | ) | 0.28 | 1.99 | 0.52 | (0.42 | ) | 0.42 | 0.42 | ||||||||||||||||||||||||||||||||
ALL THRIFTS (164) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 3.74 | 0.56 | 3.17 | 0.05 | 0.02 | 0.88 | 3.04 | 0.99 | 0.24 | 0.89 | 0.87 | |||||||||||||||||||||||||||||||||||
MIDWEST THRIFTS (52) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 3.62 | 0.52 | 3.10 | 0.03 | 0.01 | 0.97 | 3.08 | 0.99 | 0.17 | 0.71 | 0.72 | |||||||||||||||||||||||||||||||||||
ILLINOIS THRIFTS (14) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 3.39 | 0.47 | 2.92 | 0.02 | 0.02 | 0.86 | 3.18 | 0.67 | 0.20 | 0.47 | 0.42 |
135
EXHIBIT 44
KELLER & COMPANY
Dublin, Ohio
614-766-1426
YIELDS, COSTS AND EARNINGS RATIOS
TRAILING FOUR QUARTERS
Yield on | Cost of | Net | Net | |||||||||||||||||||||||||||||||
Int. Earning | Int. Bearing | Interest | Interest | Core | Core | |||||||||||||||||||||||||||||
Assets | Liabilities | Spread | Margin * | ROAA | ROAE | ROAA | ROAE | |||||||||||||||||||||||||||
(%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | 4.01 | 0.50 | 3.50 | 3.57 | 0.41 | 2.91 | 0.38 | 2.71 | ||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | 4.03 | 0.73 | 3.29 | 3.43 | 0.71 | 5.63 | 0.72 | 6.60 | |||||||||||||||||||||||||
CFBK | CENTRAL FEDERAL CORP | 3.88 | 0.98 | 2.89 | 3.12 | 0.94 | 8.21 | 0.94 | 8.60 | |||||||||||||||||||||||||
WBKC | WOLVERINE BANCORP | 4.33 | 1.19 | 3.14 | 3.38 | 0.88 | 5.53 | 0.88 | 5.51 | |||||||||||||||||||||||||
WAYN | WAYNE SAVINGS BANCSHARES | 3.64 | 0.58 | 3.06 | 3.14 | 0.42 | 4.60 | 0.44 | 4.84 | |||||||||||||||||||||||||
PBSK | POAGE BANKSHARES | 4.84 | 0.70 | 4.14 | 4.30 | 0.77 | 4.83 | 0.78 | 5.00 | |||||||||||||||||||||||||
BYBK | BAY BANCORP | 5.12 | 0.57 | 4.55 | 4.72 | 0.43 | 3.05 | 0.42 | 3.02 | |||||||||||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | 3.30 | 0.58 | 2.72 | 2.81 | 0.64 | 5.28 | 0.68 | 5.46 | |||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | 4.14 | 1.19 | 2.95 | 3.13 | 0.74 | 7.53 | 0.71 | 7.11 | |||||||||||||||||||||||||
HMNF | HMN FINANCIAL | 3.64 | 0.24 | 3.40 | 3.48 | 0.60 | 4.87 | 0.62 | 5.07 | |||||||||||||||||||||||||
SVBI | SEVERN BANCORP | 4.38 | 1.40 | 2.99 | 3.12 | 0.59 | 5.25 | 0.62 | 5.59 | |||||||||||||||||||||||||
Average | 4.13 | 0.82 | 3.31 | 3.46 | 0.67 | 5.48 | 0.68 | 5.68 | ||||||||||||||||||||||||||
Median | 4.08 | 0.72 | 3.10 | 3.26 | 0.68 | 5.27 | 0.70 | 5.49 | ||||||||||||||||||||||||||
High | 5.12 | 1.40 | 4.55 | 4.72 | 0.94 | 8.21 | 0.94 | 8.60 | ||||||||||||||||||||||||||
Low | 3.30 | 0.24 | 2.72 | 2.81 | 0.42 | 3.05 | 0.42 | 3.02 | ||||||||||||||||||||||||||
ALL THRIFTS (164) | ||||||||||||||||||||||||||||||||||
Average | 4.03 | 0.73 | 3.30 | 3.43 | 0.89 | 7.43 | 0.87 | 7.27 | ||||||||||||||||||||||||||
MIDWEST THRIFTS (52) | ||||||||||||||||||||||||||||||||||
Average | 3.91 | 0.66 | 3.24 | 3.35 | 0.71 | 5.95 | 0.72 | 6.38 | ||||||||||||||||||||||||||
ILLINOIS THRIFTS (14) | ||||||||||||||||||||||||||||||||||
Average | 3.68 | 0.58 | 3.09 | 3.17 | 0.47 | 4.26 | 0.42 | 4.25 |
* | Based on average interest-earning assets. |
136
EXHIBIT 45
KELLER & COMPANY
Dublin, Ohio
614-766-1426
RESERVES AND SUPPLEMENTAL DATA
RESERVES AND SUPPLEMENTAL DATA | ||||||||||||||||||||||
Net | ||||||||||||||||||||||
Reserves/ | Reserves/ | Chargeoffs/ | Provisions/ | |||||||||||||||||||
Gross | NPA | Average | Net | Effective | ||||||||||||||||||
Loans | Loans | Chargeoffs | Tax Rate | |||||||||||||||||||
(%) | (%) | (%) | (%) | (%) | ||||||||||||||||||
SUBJECT | ||||||||||||||||||||||
OTTAWA BANCORP, INC. | 1.49 | 41.09 | 0.36 | 43.30 | 27.99 | |||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | 1.45 | 110.04 | (0.10 | ) | NM | 35.83 | |||||||||||||||
CFBK | CENTRAL FEDERAL CORP | 2.17 | 204.45 | (0.07 | ) | NM | NM | |||||||||||||||
WBKC | WOLVERINE BANCORP | 3.09 | 151.05 | (0.52 | ) | (35.05 | ) | 35.21 | ||||||||||||||
WAYN | WAYNE SAVINGS BANCSHARES | 0.96 | 145.12 | 0.02 | 611.76 | 21.40 | ||||||||||||||||
PBSK | POAGE BANKSHARES | 0.59 | 31.99 | 0.23 | 15.76 | 30.71 | ||||||||||||||||
BYBK | BAY BANCORP | 0.44 | 18.28 | 0.11 | 236.61 | 36.82 | ||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | 1.79 | 86.90 | 0.60 | 11.25 | 15.49 | ||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | 0.90 | 83.92 | 0.18 | 132.35 | 28.87 | ||||||||||||||||
HMNF | HMN FINANCIAL | 2.02 | 140.08 | (0.73 | ) | (8.84 | ) | 37.18 | ||||||||||||||
SVBI | SEVERN BANCORP | 1.40 | 83.95 | (0.36 | ) | 87.59 | 1.92 | |||||||||||||||
Average | 1.48 | 105.58 | (0.06 | ) | 131.43 | 27.05 | ||||||||||||||||
Median | 1.43 | 98.47 | (0.03 | ) | 51.68 | 30.71 | ||||||||||||||||
High | 3.09 | 204.45 | 0.60 | 611.76 | 37.18 | |||||||||||||||||
Low | 0.44 | 18.28 | (0.73 | ) | (35.05 | ) | 1.92 | |||||||||||||||
ALL THRIFTS (164) | ||||||||||||||||||||||
Average | 1.17 | 114.03 | 0.04 | 425.41 | 29.71 | |||||||||||||||||
MIDWEST THRIFTS (52) | ||||||||||||||||||||||
Average | 1.27 | 95.57 | 0.05 | 357.21 | 27.35 | |||||||||||||||||
ILLINOIS THRIFTS (14) | ||||||||||||||||||||||
Average | 1.26 | 92.25 | 0.01 | 275.25 | 28.85 |
137
EXHIBIT 46
KELLER & COMPANY
Dublin, Ohio
614-766-1426
COMPARABLE GROUP MARKET, PRICING AND FINANCIAL RATIOS
STOCK PRICES AS OF MAY 16, 2016
FINANCIAL DATA/ALL RATIOS MOST RECENT FOUR QUARTERS
Market Data | Pricing Ratios | Dividends | Financial Ratios | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market Value ($M) | Price/ Share ($) | 12 Mo. EPS ($) | Bk. Value /Share ($) | Price/ Earnings (X) | Price/ Book Value (%) | Price/ Assets (%) | Price/ Tang. Bk. Val. (%) | Price/ Core Earnings (X) | 12 Mo. Div./ Share ($) | Dividend Yield (%) | Payout Ratio (%) | Equity/ Assets (%) | Core ROAA (%) | Core ROAE (%) | ||||||||||||||||||||||||||||||||||||||||||||||||
OTTAWA BANCORP, INC. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appraised value - midpoint | 30,000 | 10.00 | 0.25 | 16.04 | 39.74 | 62.58 | 12.84 | 64.02 | 43.31 | 0.00 | 0.00 | 0.00 | 20.60 | 0.28 | 1.37 | |||||||||||||||||||||||||||||||||||||||||||||||
Minimum | 25,500 | 10.00 | 0.31 | 17.78 | 32.75 | 56.37 | 11.05 | 57.74 | 35.59 | 0.00 | 0.00 | 0.00 | 19.64 | 0.29 | 1.50 | |||||||||||||||||||||||||||||||||||||||||||||||
Maximum | 34,500 | 10.00 | 0.21 | 14.71 | 47.29 | 68.12 | 14.60 | 69.59 | 51.69 | 0.00 | 0.00 | 0.00 | 21.48 | 0.27 | 1.25 | |||||||||||||||||||||||||||||||||||||||||||||||
ALL THRIFTS (163) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | 192,016 | 17.41 | 1.33 | 18.40 | 16.40 | 106.12 | 12.76 | 112.31 | 18.19 | 0.66 | 2.25 | 47.51 | 12.02 | 0.71 | 6.18 | |||||||||||||||||||||||||||||||||||||||||||||||
Median | 51,979 | 15.09 | 0.81 | 14.90 | 15.79 | 102.20 | 11.50 | 108.02 | 15.25 | 0.21 | 1.34 | 39.54 | 11.04 | 0.71 | 5.51 | |||||||||||||||||||||||||||||||||||||||||||||||
ILLINOIS THRIFTS (14) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | 40,064 | 13.44 | 0.70 | 16.97 | 54.46 | 89.78 | 10.93 | 91.87 | 9.55 | 0.44 | 2.56 | 61.98 | 11.11 | 0.42 | 4.25 | |||||||||||||||||||||||||||||||||||||||||||||||
Median | 25,134 | 13.06 | 0.56 | 14.08 | 14.84 | 89.85 | 12.60 | 90.20 | 13.16 | 0.10 | 0.88 | 58.40 | 11.18 | 0.46 | 4.19 | |||||||||||||||||||||||||||||||||||||||||||||||
COMPARABLE GROUP (10) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | 48,492 | 12.11 | 0.74 | 13.51 | 16.90 | 86.04 | 10.41 | 91.78 | 16.64 | 0.28 | 1.52 | 24.34 | 12.04 | 0.68 | 5.68 | |||||||||||||||||||||||||||||||||||||||||||||||
Median | 55,838 | 12.85 | 0.67 | 13.62 | 17.46 | 90.45 | 10.07 | 94.80 | 17.39 | 0.12 | 0.72 | 14.46 | 11.77 | 0.70 | 5.49 | |||||||||||||||||||||||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BYBK | BAY BANCORP | 56,089 | 5.07 | 0.19 | 6.13 | 26.68 | 82.71 | 11.42 | 85.93 | 27.58 | 0.00 | 0.00 | 0.00 | 13.82 | 0.42 | 3.02 | ||||||||||||||||||||||||||||||||||||||||||||||
CFBK | CENTRAL FEDERAL CORP | 21,312 | 1.33 | 0.19 | 2.36 | 7.00 | 56.36 | 6.13 | 56.60 | 6.85 | 0.00 | 0.00 | 0.00 | 10.86 | 0.94 | 8.60 | ||||||||||||||||||||||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | 48,914 | 18.50 | 1.56 | 20.72 | 11.86 | 89.29 | 8.71 | 120.52 | 12.49 | 0.92 | 5.11 | 58.97 | 9.75 | 0.71 | 7.11 | ||||||||||||||||||||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORPORATION | 26,182 | 8.44 | 0.47 | 8.36 | 17.96 | 100.96 | 12.04 | 104.84 | 17.84 | 0.00 | 0.00 | 0.00 | 11.92 | 0.72 | 6.60 | ||||||||||||||||||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | 55,588 | 12.40 | 0.81 | 16.63 | 15.31 | 74.56 | 8.66 | 76.50 | 14.77 | 0.00 | 0.00 | 0.00 | 11.62 | 0.62 | 5.07 | ||||||||||||||||||||||||||||||||||||||||||||||
PBSK | POAGE BANKSHARES | 62,185 | 15.75 | 0.83 | 17.19 | 18.98 | 91.62 | 14.31 | 95.80 | 18.71 | 0.24 | 1.45 | 28.92 | 15.62 | 0.78 | 5.00 | ||||||||||||||||||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | 58,213 | 5.77 | 0.45 | 8.57 | 12.82 | 67.33 | 7.64 | 68.12 | 12.23 | 0.00 | 0.00 | 0.00 | 11.35 | 0.62 | 5.59 | ||||||||||||||||||||||||||||||||||||||||||||||
UCBA | UNITED COMMUNITY BANCORP | 63,216 | 14.42 | 0.70 | 13.24 | 20.60 | 108.91 | 13.16 | 115.36 | 19.34 | 0.24 | 1.76 | 34.29 | 12.09 | 0.68 | 5.46 | ||||||||||||||||||||||||||||||||||||||||||||||
WAYN | WAYNE SVNGS BANCSHARES | 36,998 | 13.30 | 0.64 | 14.00 | 20.78 | 95.00 | 8.52 | 100.38 | 19.67 | 0.36 | 2.91 | 56.25 | 8.97 | 0.44 | 4.84 | ||||||||||||||||||||||||||||||||||||||||||||||
WBKC | WOLVERINE BANCORP | 56,219 | 26.12 | 1.54 | 27.89 | 16.96 | 93.65 | 13.46 | 93.79 | 16.94 | 1.00 | 3.92 | 64.94 | 14.37 | 0.88 | 5.51 |
138
EXHIBIT 47
KELLER & COMPANY | ||||
Columbus, Ohio | ||||
614-766-1426 |
VALUATION ANALYSIS AND CALCULATION - FULL CONVERSION
OTTAWA BANCORP, INC.
Pricing ratios and parameters:
Midpoint | Comparable Group | All Thrifts | ||||||||||||||||||||||
Pro Forma | Symbol | Ratios | Average | Median | Average | Median | ||||||||||||||||||
Price to earnings | P/E | 39.74 | 16.90 | 17.46 | 16.40 | 15.79 | ||||||||||||||||||
Price to core earnings | P/CE | 43.31 | 16.64 | 17.39 | 18.19 | 15.25 | ||||||||||||||||||
Price to book value | P/B | % | 62.58 | 86.04 | 90.45 | 106.12 | 102.20 | |||||||||||||||||
Price to tangible book value | P/TB | % | 64.02 | 91.78 | 94.80 | 112.31 | 108.02 | |||||||||||||||||
Price to assets | P/A | % | 12.84 | 10.41 | 10.07 | 12.76 | 11.50 | |||||||||||||||||
Pre conversion earnings | (Y) | $ | 886,000 | For the twelve months ended March 31, 2016 | ||||||||||||||||||||
Pre conversion core earnings | (CY) | $ | 827,000 | For the twelve months ended March 31, 2016 | ||||||||||||||||||||
Pre conversion book value | (B) | $ | 31,040,187 | At March 31, 2016 | ||||||||||||||||||||
Pre conversion tang. book value | (TB) | $ | 29,962,318 | At March 31, 2016 | ||||||||||||||||||||
Pre conversion assets | (A) | $ | 216,565,000 | At March 31, 2016 | ||||||||||||||||||||
Conversion expense | (X) | 7.11 | % |
| Percent sold |
| (PCT) | 69.10 | % | |||||||||||||||
ESOP stock purchase | (E) | 8.00 | % |
| Option % granted |
| (OP) | 10.00 | % | |||||||||||||||
ESOP cost of borrowings, net | (S) | 0.00 | % |
| Est. option value |
| (OV) | 30.50 | % | |||||||||||||||
ESOP term (yrs.) | (T) | 15 |
| Option maturity |
| (OM) | 5 | |||||||||||||||||
RRP amount | (M) | 4.00 | % |
| Option % taxable |
| (OT) | 25.00 | % | |||||||||||||||
RRP term (yrs.) | (N) | 5 |
| Price per share |
| (P) | $ | 10.00 | ||||||||||||||||
Tax rate | (TAX) | 34.00 | % | |||||||||||||||||||||
Investment rate of return, pretax | 1.20 | % | ||||||||||||||||||||||
Investment rate of return, net | (RR) | 0.79 | % |
Formulae to indicate value after conversion:
1. P/CE method: Value = | P/CE*CY | = | $30,000,000 | |||||||
((1-P/CE*(PCT)*((1-X-E-M)*(RR*(1-TAX))-((1-TAX)*E/T)-((1-TAX)*M/N)-((1-TAX)*OT)*(OP*OV)/OM))) | ||||||||||
2. P/B method: Value = | P/B*(B) | = | $30,000,000 | |||||||
(1-PB*(PCT)*(1-X-E-M)) | ||||||||||
3. P/A method: Value = | P/A*(A) | = | $30,000,000 | |||||||
(1-PA*(PCT)*(1-X-E-M)) |
VALUATION CORRELATION AND CONCLUSIONS:
Exchange Shares Issued | Public Shares Issued | Gross Proceeds of Public Offering | Exchange Ratio | Total Shares Issued | TOTAL VALUE | |||||||||||||||||||
Midpoint | 927,000 | 2,073,000 | $ | 20,730,000 | 1.0366 | 3,000,000 | $ | 30,000,000 | ||||||||||||||||
Minimum | 787,950 | 1,762,050 | $ | 17,620,500 | 0.8811 | 2,550,000 | $ | 25,500,000 | ||||||||||||||||
Maximum | 1,066,050 | 2,383,950 | $ | 23,839,500 | 1.1921 | 3,450,000 | $ | 34,500,000 |
139
KELLER & COMPANY | EXHIBIT 48 | |||
Columbus, Ohio | ||||
614-766-1426 |
PROJECTED EFFECT OF CONVERSION PROCEEDS
OTTAWA BANCORP, INC.
At the MINIMUM
1. Gross Offering Proceeds | ||||||||
Offering proceeds(1) | $ | 17,620,500 | ||||||
Less: Estimated offering expenses | 1,417,000 | |||||||
|
| |||||||
Net offering proceeds | $ | 16,203,500 | ||||||
2. Generation of Additional Income | ||||||||
Net offering proceeds | $ | 16,203,500 | ||||||
Less: Stock-based benefit plans(2) | 2,114,460 | |||||||
Plus: MHC assets reinvested | 128,000 | |||||||
|
| |||||||
Net offering proceeds invested | $ | 14,217,040 | ||||||
Investment rate, after taxes | 0.79 | % | ||||||
Earnings increase - return on proceeds invested | $ | 112,599 | ||||||
Less: Amortization of prior ESOP borrowings, net of taxes | 6,265 | |||||||
Less: Amortization of ESOP borrowings, net of taxes | 62,024 | |||||||
Less: Stock-based incentive plan expense, net of taxes | 93,036 | |||||||
Less: Option expense, net of applicable taxes | 98,349 | |||||||
|
| |||||||
Net earnings increase (decrease) | $ | (147,075 | ) | |||||
3. Comparative Pro Forma Earnings | ||||||||
Net | Core | |||||||
Before conversion - twelve months ended 3/31/16 | $ | 886,000 | $ | 827,000 | ||||
Net earnings increase (decrease) | (147,075 | ) | (147,075 | ) | ||||
|
|
|
| |||||
After conversion | $ | 738,925 | $ | 679,925 | ||||
4. Comparative Pro Forma Net Worth(3) | ||||||||
Total | Tangible | |||||||
Before conversion - 3/31/16 | $ | 31,040,187 | $ | 29,962,318 | ||||
Net cash conversion proceeds | 14,217,040 | 14,217,040 | ||||||
Plus: MHC assets reinvested | 128,000 | 128,000 | ||||||
|
|
|
| |||||
After conversion | $ | 45,385,227 | $ | 44,307,358 | ||||
5. Comparative Pro Forma Assets | ||||||||
Before conversion - 3/31/16 | $ | 216,565,000 | ||||||
Net cash conversion proceeds | 14,217,040 | |||||||
Plus: MHC assets reinvested | 128,000 | |||||||
|
| |||||||
After conversion | $ | 230,910,040 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth. |
140
KELLER & COMPANY | EXHIBIT 49 | |||
Columbus, Ohio | ||||
614-766-1426 |
PROJECTED EFFECT OF CONVERSION PROCEEDS
OTTAWA BANCORP, INC.
At the MIDPOINT
1. Gross Offering Proceeds | ||||||||
Offering proceeds(1) | $ | 20,730,000 | ||||||
Less: Estimated offering expenses | 1,473,000 | |||||||
|
| |||||||
Net offering proceeds | $ | 19,257,000 | ||||||
2. Generation of Additional Income | ||||||||
Net offering proceeds | $ | 19,257,000 | ||||||
Less: Stock-based benefit plans(2) | 2,487,600 | |||||||
Plus: MHC assets reinvested | 128,000 | |||||||
|
| |||||||
Net offering proceeds invested | $ | 16,897,400 | ||||||
Investment rate, after taxes | 0.79 | % | ||||||
Earnings increase - return on proceeds invested | $ | 133,827 | ||||||
Less: Amortization of prior ESOP borrowings, net of taxes | 6,265 | |||||||
Less: Amortization of ESOP borrowings, net of taxes | 72,970 | |||||||
Less: Stock-based incentive plan expense, net of taxes | 109,454 | |||||||
Less: Option expense, net of applicable taxes | 115,704 | |||||||
|
| |||||||
Net earnings increase (decrease) | $ | (170,566 | ) | |||||
3. Comparative Pro Forma Earnings | ||||||||
Regular | Core | |||||||
Before conversion - twelve months ended 3/31/16 | $ | 886,000 | $ | 827,000 | ||||
Net earnings increase | (170,566 | ) | (170,566 | ) | ||||
|
|
|
| |||||
After conversion | $ | 715,434 | $ | 656,434 | ||||
4. Comparative Pro Forma Net Worth(3) | ||||||||
Total | Tangible | |||||||
Before conversion - 3/31/16 | $ | 31,040,187 | $ | 29,962,318 | ||||
Net cash conversion proceeds | 16,897,400 | 16,897,400 | ||||||
Plus: MHC assets reinvested | 128,000 | 128,000 | ||||||
|
|
|
| |||||
After conversion | $ | 48,065,587 | $ | 46,987,718 | ||||
5. Comparative Pro Forma Assets | ||||||||
Before conversion - 3/31/16 | $ | 216,565,000 | ||||||
Net cash conversion proceeds | 16,897,400 | |||||||
Plus: MHC assets reinvested | 128,000 | |||||||
|
| |||||||
After conversion | $ | 233,590,400 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth. |
141
KELLER & COMPANY | EXHIBIT 50 | |||
Columbus, Ohio | ||||
614-766-1426 |
PROJECTED EFFECT OF CONVERSION PROCEEDS
OTTAWA BANCORP, INC.
At the MAXIMUM
1. Gross Offering Proceeds | ||||||||
Offering proceeds(1) | $ | 23,839,500 | ||||||
Less: Estimated offering expenses | 1,529,000 | |||||||
|
| |||||||
Net offering proceeds | $ | 22,310,500 | ||||||
2. Generation of Additional Income | ||||||||
Net offering proceeds | $ | 22,310,500 | ||||||
Less: Stock-based benefit plans (2) | 2,860,740 | |||||||
Plus: MHC assets reinvested | 128,000 | |||||||
|
| |||||||
Net offering proceeds invested | $ | 19,577,760 | ||||||
Investment rate, after taxes | 0.79 | % | ||||||
Earnings increase - return on proceeds invested | $ | 155,056 | ||||||
Less: Amortization of prior ESOP borrowings, net of taxes | 6,265 | |||||||
Less: Amortization of ESOP borrowings, net of taxes | 83,915 | |||||||
Less: Stock-based incentive plan expense, net of taxes | 125,873 | |||||||
Less: Option expense, net of applicable taxes | 133,060 | |||||||
|
| |||||||
Net earnings increase (decrease) | $ | (194,057 | ) | |||||
3. Comparative Pro Forma Earnings | ||||||||
Regular | Core | |||||||
Before conversion - twelve months ended 3/31/16 | $ | 886,000 | $ | 827,000 | ||||
Net earnings increase | (194,057 | ) | (194,057 | ) | ||||
|
|
|
| |||||
After conversion | $ | 691,943 | $ | 632,943 | ||||
4. Comparative Pro Forma Net Worth(3) | ||||||||
Total | Tangible | |||||||
Before conversion - 3/31/16 | $ | 31,040,187 | $ | 29,962,318 | ||||
Net cash conversion proceeds | 19,577,760 | 19,577,760 | ||||||
Plus: MHC assets reinvested | 128,000 | 128,000 | ||||||
|
|
|
| |||||
After conversion | $ | 50,745,947 | $ | 49,668,078 | ||||
5. Comparative Pro Forma Assets | ||||||||
Before conversion - 3/31/16 | $ | 216,565,000 | ||||||
Net cash conversion proceeds | 19,577,760 | |||||||
Plus: MHC assets reinvested | 128,000 | |||||||
|
| |||||||
After conversion | $ | 236,270,760 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans |
(3) | ESOP and RRP are omitted from net worth. |
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KELLER & COMPANY | EXHIBIT 51 |
Columbus, Ohio
614-766-1426
SUMMARY OF VALUATION PREMIUM OR DISCOUNT
OTTAWA BANCORP, INC.
Premium or (discount) from comparable group. | ||||||||||||
Ottawa Bancorp, Inc. | Average | Median | ||||||||||
Midpoint: | ||||||||||||
Price/earnings | 39.74 x | 135.15 | % | 127.61 | % | |||||||
Price/book value | 62.58 | % * | -27.27 | % | -30.81 | % | ||||||
Price/assets | 12.84 | % | 23.34 | % | 27.51 | % | ||||||
Price/tangible book value | 64.02 | % | -30.25 | % | -32.47 | % | ||||||
Price/core earnings | 43.31 x | 160.28 | % | 149.05 | % | |||||||
Minimum of range: | ||||||||||||
Price/earnings | 32.75 x | 93.79 | % | 87.57 | % | |||||||
Price/book value | 56.37 | % * | -34.48 | % | -37.68 | % | ||||||
Price/assets | 11.05 | % | 6.15 | % | 9.73 | % | ||||||
Price/tangible book value | 57.74 | % | -37.09 | % | -39.09 | % | ||||||
Price/core earnings | 35.59 x | 113.88 | % | 104.66 | % | |||||||
Maximum of range: | ||||||||||||
Price/earnings | 47.29 x | 179.82 | % | 170.85 | % | |||||||
Price/book value | 68.12 | % * | -20.83 | % | -24.69 | % | ||||||
Price/assets | 14.60 | % | 40.25 | % | 44.99 | % | ||||||
Price/tangible book value | 65.59 | % | -28.54 | % | -30.81 | % | ||||||
Price/core earnings | 51.69 x | 210.64 | % | 197.24 | % |
* | Represents pricing ratio associated with primary valuation method. |
143
ALPHABETICAL
EXHIBITS
EXHIBIT A
KELLER & COMPANY, INC.
Financial Institution Consultants
555 Metro Place North | 614-766-1426 | |
Dublin, Ohio 43017 | (fax) 614-766-1459 |
PROFILE OF THE FIRM
KELLER & COMPANY, INC. is a national consulting firm to financial institutions, serving clients throughout the United States from its office in Dublin, Ohio. Since our inception in 1985, we have provided a wide range of consulting services to over 250 financial institutions including banks, thrifts, mortgage companies, insurance companies and holding companies from Oregon to Maine.
Services offered by Keller & Company include the preparation of stock and ESOP valuations, fairness opinions, business and strategic plans, capital plans, financial models and projections, market studies, de novo charter and deposit insurance applications, incentive compensation plans, compliance policies, lending, underwriting and investment criteria, and responses to regulatory comments. Keller & Company also serves as advisor in merger/acquisition, deregistration, going private, secondary offering and branch purchase/sale transactions. Keller & Company is additionally active in loan review, director and management review, product analysis and development, performance analysis, compensation review, policy development, charter conversion, data processing, information technology systems, and conference planning and facilitation.
Keller & Company is one of the leading thrift conversion appraisal firms in the United States. We have on-line access to current and historical financial, organizational and demographic data for every financial institution and financial institution holding company in the United States and daily pricing data and ratios for all publicly traded financial institutions.
Keller & Company is an approved appraiser for filing with the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and numerous state government agencies, and is also approved by the Internal Revenue Service as an expert in financial institution stock valuations. We are an affiliate member of numerous trade organizations including the American Bankers Association and America’s Community Bankers.
Each of the firm’s senior consultants has over thirty years of front line experience and accomplishment in various areas of the financial institution, regulatory and real estate sectors, offering clients distinct and diverse areas of expertise. It is the goal of Keller & Company to provide specific and ongoing relationship-based services that are pertinent, focused and responsive to the needs of the individual client institution within the changing industry environment, and to offer those services at reasonable fees on a timely basis. In recent years, Keller & Company has become one of the leading and most recognized financial institution consulting firms in the nation.
144
CONSULTANTS IN THE FIRM
MICHAEL R. KELLERhas over thirty years experience as a consultant to the financial institution industry. Immediately following his graduation from college, Mr. Keller took a position as an examiner of financial institutions in northeastern Ohio with a focus on Cleveland area institutions. After working two years as an examiner, Mr. Keller entered Ohio State University full time to obtain his M.B.A. in Finance.
Mr. Keller then worked as an associate for a management consulting firm specializing in services to financial institutions immediately after receiving his M.B.A. During his eight years with the firm, he specialized in mergers and acquisitions, branch acquisitions and sales, branch feasibility studies, stock valuations, charter applications, and site selection analyses. By the time of his departure, he had attained the position of vice president, with experience in almost all facets of banking operations.
Prior to forming Keller & Company, Mr. Keller also worked as a senior consultant in a larger consulting firm. In that position, he broadened his activities and experience, becoming more involved with institutional operations, business and strategic planning, regulatory policies and procedures, performance analysis, conversion appraisals, and fairness opinions. Mr. Keller established Keller & Company in November 1985 to better serve the needs of the financial institution industry.
Mr. Keller graduated from the College of Wooster with a B.A. in Economics in 1972, and later received an M.B.A. in Finance in 1976 from the Ohio State University where he took numerous courses in corporate stock valuations.
145
Consultants in the Firm (cont.)
SUSANH. O’DONNELLhas twenty years of experience in the finance and accounting areas of the banking industry.
At the start of her career, Ms. O’Donnell worked in public accounting for Coopers & Lybrand in Cincinnati and earned her CPA. Her clients consisted primarily of financial institutions and health care companies.
Ms. O’Donnell then joined Empire Bank of America in Buffalo, New York. During her five years with Empire, Ms. O’Donnell progressed to the level of Vice President and was responsible for SEC, FHLB and internal financial reporting. She also coordinated the offering circular for its initial offering of common stock.
Ms. O’Donnell later joined Banc One Corporation where she worked for eleven years. She began her career at Banc One in the Corporate Accounting Department where she was responsible for SEC, Federal Reserve and investor relations reporting and coordinated the offering documents for stock and debt offerings. She also performed acquisition work including regulatory applications and due diligence and established accounting policies and procedures for all affiliates. Ms. O’Donnell later moved within Banc One to the position of chief financial officer of the Personal Trust business responsible for $225 million in revenue. She then provided leadership as the Director of Personal Trust Integration responsible for various savings and revenue enhancements related to the Bank One/First Chicago merger.
Ms. O’Donnell graduated from Miami University with a B.S. in Business. She also completed the Leading Strategic Change Program at The Darden School of Business and the Banc One Leadership Development Program.
146
Consultants in the Firm (cont.)
JOHN A. SHAFFERhas over thirty years experience in banking, finance, real estate lending, and development.
Following his university studies, Mr. Shaffer served as a lending officer for a large real estate investment trust, specializing in construction and development loans. Having gained experience in loan underwriting, management and workout, he later joined Chemical Bank of New York and was appointed Vice President for Loan Administration of Chemical Mortgage Company in Columbus, Ohio. At Chemical, he managed all commercial and residential loan servicing, administering a portfolio in excess of $2 billion. His responsibilities also included the analysis, management and workout of problem commercial real estate loans and equity holdings, and the structuring, negotiation, acquisition and sale of loan servicing, mortgage and equity securities and real estate projects. Mr. Shaffer later formed and managed an independent real estate and financial consulting firm, serving corporate and institutional clients, and also investing in and developing real estate.
Mr. Shaffer’s primary activities and responsibilities have included financial analysis, projection and modeling, asset and liability management, real estate finance and development, loan management and workout, organizational and financial administration, budgeting, cash flow management and project design.
Mr. Shaffer graduated from Syracuse University with a B.S. in Business Administration, later receiving an M.B.A. in Finance and a Ph.D. in Economics from New York University.
147
EXHIBIT B
RB 20
CERTIFICATION
I hereby certify that I have not been the subject of any criminal, civil or administrative judgments, consents, undertakings or orders, or any past administrative proceedings (excluding routine or customary audits, inspections and investigation) issued by any federal or state court, any department, agency, or commission of the U.S. Government, any state or municipality, any self-regulatory trade or professional organization, or any foreign government or governmental entity, which involve:
(i) | commission of a felony, fraud, moral turpitude, dishonesty or breach of trust; |
(ii) | violation of securities or commodities laws or regulations; |
(iii) | violation of depository institution laws or regulations; |
(iv) | violation of housing authority laws or regulations; |
(v) | violation of the rules, regulations, codes or conduct or ethics of a self-regulatory trade or professional organization; |
(vi) | adjudication of bankruptcy or insolvency or appointment of a receiver, conservator, trustee, referee, or guardian. |
I hereby certify that the statements I have made herein are true, complete and correct to the best of my knowledge and belief.
Conversion Appraiser | ||||
May 23, 2016 | ||||
Date | Michael R. Keller |
148
EXHIBIT C
AFFIDAVIT OF INDEPENDENCE
STATE OF OHIO,
COUNTY OF FRANKLIN, ss:
I, Michael R. Keller, being first duly sworn hereby depose and say that:
The fee which I received directly from the applicant, Ottawa Savings Bank, in the amount of $35,000 for the performance of my appraisal was not related to the value determined in the appraisal and that the undersigned appraiser is independent and has fully disclosed any relationships which may have a material bearing upon the question of my independence; and that any indemnity agreement with the applicant has been fully disclosed.
Further, affiant sayeth naught.
MICHAEL R. KELLER |
Sworn to before me and subscribed in my presence this 23rd day of May 2016.
| ||||
NOTARY PUBLIC | ||||
149