Exhibit 99.3.1
Feldman Financial Advisors, Inc.
8804 Mirador Place
McLean, VA 22102
(202) 467-6862
Wisconsin Mutual Bancorp, MHC Kaukauna, Wisconsin
Conversion Valuation Appraisal Update Valued as of May 14, 2024
Prepared By
Feldman Financial Advisors, Inc. McLean, Virginia |
Feldman Financial Advisors, Inc.
8804 Mirador Place
McLean, VA 22102
202-467-6862
May 14, 2024
Board of Directors
Wisconsin Mutual Bancorp, MHC
109 West Second Street
Kaukauna, Wisconsin 54130
Members of the Board of Directors:
At your request, we have completed and hereby provide an independent appraisal (the “Appraisal”) of the estimated pro forma market value of Wisconsin Mutual Bancorp, MHC (the “Company”) as of May 14, 2024, in conjunction with the Company’s conversion (the “Conversion”) from a mutual holding company to a stock holding company form of organization, issuance of all of its capital stock to a newly formed Maryland corporation known as EWSB Bancorp, Inc. (“New EWSB Bancorp”), and offering for sale of New EWSB Bancorp’s common stock to eligible depositors of East Wisconsin Savings Bank (the “Bank”) and the Bank’s employee stock ownership plan (“ESOP”), and also to certain members of the general public if necessary, in the subscription and community offering (the “Stock Offering”). This updated Appraisal is being furnished in connection with the reporting of the Company’s recent financial results through the period ended March 31, 2024.
Feldman Financial Advisors, Inc. (“Feldman Financial”) is a financial consulting and advisory firm that specializes in valuations and analyses of business enterprises and securities in the thrift, banking, and mortgage industries. The background of Feldman Financial is presented in Exhibit I. In preparing the original and updated Appraisals, we conducted an analysis of the Company that included discussions with the Company’s management, the Company’s legal counsel, Luse Gorman, PC, and the Company’s independent registered public accounting firm, Plante & Moran, PLLC. In addition, where appropriate, we considered information based on other available published sources that we believe are reliable; however, we cannot guarantee the accuracy and completeness of such information. We also reviewed, among other factors, the economy in the Company’s primary market area and compared the Company’s financial condition and operating performance with that of selected publicly traded thrift institutions. We reviewed conditions in the securities markets in general and in the market for thrift institution common stocks in particular. Our original Appraisal as of February 23, 2024 is incorporated and supplemented herein by reference.
Our Appraisal is not intended and must not be construed to be a recommendation of any kind as to the advisability of purchasing shares of Stock Offering. Moreover, because such valuations are necessarily based upon estimates and projections of a number of matters, all of which are subject to change from time to time, no assurance can be given that persons who purchase shares in the Stock Offering will thereafter be able to sell such shares at prices related to our estimate of the Company’s pro forma market value.
Feldman Financial Advisors, Inc.
Board of Directors
Wisconsin Mutual Bancorp, MHC
May 14, 2024
Page 2
Recent Financial Performance
Table 1 summarizes the Company’s financial data and key ratios as of December 31, 2022 and 2023 and March 31, 2024. Table 2 summarizes the Company’s recent income statement data and performance ratios for the annual and year-to-date periods. Exhibits 1 and 2 present more detailed balance sheet and income statement data for the recent historical periods.
Table 1
Selected Financial Data and Ratios
As of December 31, 2022 and 2023 and March 31, 2024
(Dollars in Thousands)
| March 31, | December 31, | |||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Summary Balance Sheet Data | ||||||||||||
| Total assets | $ | 266,502 | $ | 262,567 | $ | 271,191 | ||||||
| Cash and cash equivalents | 8,653 | 6,106 | 7,839 | |||||||||
| Investment securities | 63,882 | 63,999 | 72,608 | |||||||||
| Federal Home Loan Bank stock | 1,224 | 1,084 | 1,076 | |||||||||
| Total loans, net | 175,484 | 174,315 | 172,424 | |||||||||
| Cash value of life insurance | 7,517 | 7,462 | 7,371 | |||||||||
| Office properties and equipment, net | 2,896 | 2,910 | 3,003 | |||||||||
| Total deposits | 230,434 | 230,468 | 249,208 | |||||||||
| Borrowed funds | 23,400 | 19,030 | 9,100 | |||||||||
| Total equity | 11,227 | 11,537 | 10,919 | |||||||||
| Regulatory Capital Ratios - Bank Only | ||||||||||||
| Tier 1 capital to average assets | 6.17 | % | 6.34 | % | 6.59 | % | ||||||
| Tier 1 capital to risk-weighed assets | 10.67 | % | 11.17 | % | 11.97 | % | ||||||
| Common equity tier 1 capital to risk-weighted assets | 10.67 | % | 11.17 | % | 11.97 | % | ||||||
| Total capital to risk-weighted assets | 11.36 | % | 11.89 | % | 12.58 | % | ||||||
| Asset Quality Ratios | ||||||||||||
| Non-performing loans to total loans | 0.07 | % | 0.01 | % | 0.02 | % | ||||||
| Non-performing assets to total assets | 0.04 | % | 0.01 | % | 0.02 | % | ||||||
| Allowance for credit losses to total loans | 0.59 | % | 0.60 | % | 0.52 | % | ||||||
| Allowance for credit losses to non-performing loans | 903.45 | % | 5872.22 | % | 2456.76 | % | ||||||
| Net charge-offs to average loans | 0.01 | % | 0.00 | % | 0.05 | % | ||||||
Source: Wisconsin Mutual Bancorp, MHC, financial data.
Feldman Financial Advisors, Inc.
Board of Directors
Wisconsin Mutual Bancorp, MHC
May 14, 2024
Page 3
The Company’s total assets increased by $3.9 million, or 1.5%, to $266.5 million at March 31, 2024 from $262.6 million at December 31, 2023. The change in asset size was primarily the result of a $2.5 million increase in cash and cash equivalents and a $1.2 million increase in net total loans. Cash and cash equivalents increased from $6.1 million at December 31, 2023 to $8.7 million at March 31, 2024, primarily due to an increase in liquidity related to proceeds from additional borrowings. Investment securities declined modestly from $64.0 million at December 31, 2023 to $63.9 million at March 31, 2024, mainly as a result of principal paydowns and a modest decrease in the market value of available-for-sale securities due to increases in interest rates during the first quarter of 2024. The aggregate balance of cash and securities increased slightly from 27.1% of total assets at December 31, 2023 to 27.7% at March 31, 2024.
Net total loans increased $1.2 million, or 0.7%, to $175.5 million at March 31, 2024 from $174.3 million at December 31, 2023. Marine and recreational vehicles, construction, and home equity loans and lines of credit increased $768,000, $305,000 and $248,000, respectively, to $32.3 million, $4.3 million and $5.4 million at March 31, 2024 as a result of loan production exceeding loan payoffs and amortization. These increases were partially offset by decreases to other commercial real estate, one- to four-family, multi-family, commercial, and other consumer loans of $47,000, $15,000, $19,000, $208,000 and $32,000, respectively, to $2.3 million, $122.6 million, $1.5 million, $4.2 million and $2.2 million at March 31, 2024. The ratio of net total loans to total assets decreased from 66.4% at December 31, 2023 to 65.8% at March 31, 2024.
Total deposits remained relatively unchanged at $230.4 million at March 31, 2024 and $230.5 million at December 31, 2023. Non-interest bearing deposits decreased $1.4 million, or 14.1%, to $8.8 million at March 31, 2024 from $10.2 million at December 31, 2023. Total interest-bearing deposits other than time deposits decreased approximately $2.2 million, or 1.9%, to $113.5 million at March 31, 2024, from $115.7 million at December 31, 2023. Certificate of deposit balances increased by $4.2 million, or 4.0%, to $108.8 million at March 31, 2024, from $104.5 million at December 31, 2023. The deposit mix changes are consistent with industry trends as consumers are transitioning to higher-yielding term deposits in the current rate environment.
The Company’s total borrowings amounted to $23.4 million, or 8.8% of total assets, at March 31, 2024 as compared to $19.0 million, or 7.2% of total assets, at December 31, 2023. The Company borrowed $17.0 million from the Federal Reserve Bank under its Bank Term Funding Program in January 2024. These funds were utilized to pay down borrowings at the Federal Home Loan Bank. Approximately $2.6 million of proceeds from borrowings are held in due from banks accounts to build liquidity and fund loan growth. The ratio of borrowings to total assets increased from 7.2% at December 31, 2023 to 8.8% at March 31, 2024.
Total equity decreased $310,000, or 2.7%, to $11.2 million at March 31, 2024 from $11.5 million at December 31, 2023, due to a $378,000 decrease in retained earnings from the net loss incurred for the quarter ended March 31, 2024 and partially offset by a decrease in accumulated other comprehensive loss of $67,000. The Company’s ratio of total equity to assets decreased from 4.39% of total assets at December 31, 2023 to 4.21% of total assets at March 31, 2024.
Feldman Financial Advisors, Inc.
Board of Directors
Wisconsin Mutual Bancorp, MHC
May 14, 2024
Page 4
Table 2
Income Statement and Performance Ratios
For the Years Ended December 31, 2022 and 2023
And the Three Months Ended March 31, 2023 and 2024
(Dollars in Thousands)
| Three Months Ended | Year Ended | |||||||||||||||
| March 31, | December 31, | |||||||||||||||
| 2024 | 2023 | 2023 | 2022 | |||||||||||||
| Interest income | $ | 2,302 | $ | 2,203 | $ | 8,932 | $ | 7,985 | ||||||||
| Interest expense | 1,478 | 811 | 4,350 | 1,834 | ||||||||||||
| Net interest income | 824 | 1,392 | 4,582 | 6,151 | ||||||||||||
| Provision for credit losses | - | - | 145 | - | ||||||||||||
| Net interest income after provision | 824 | 1,392 | 4,437 | 6,151 | ||||||||||||
| Non-interest income | 469 | 271 | 1,449 | 877 | ||||||||||||
| Non-interest expense | 1,833 | 1,810 | 7,219 | 7,657 | ||||||||||||
| Net loss on sale of available-for-sale securities | - | - | - | 5,103 | ||||||||||||
| Loss before income tax benefit | (540 | ) | (147 | ) | (1,333 | ) | (5,731 | ) | ||||||||
| Income tax benefit | (162 | ) | (20 | ) | (398 | ) | (1,567 | ) | ||||||||
| Net loss | $ | (378 | ) | $ | (127 | ) | $ | (935 | ) | $ | (4,164 | ) | ||||
| Performance Ratios | ||||||||||||||||
| Return on average assets | -0.57 | % | -0.18 | % | -0.34 | % | -1.40 | % | ||||||||
| Return on average equity | -14.39 | % | -4.63 | % | -9.18 | % | -27.85 | % | ||||||||
| Net interest rate spread (1) | 1.33 | % | 2.29 | % | 1.79 | % | 2.23 | % | ||||||||
| Net interest margin (2) | 1.35 | % | 2.20 | % | 1.82 | % | 2.17 | % | ||||||||
| Non-interest expense to average assets | 2.80 | % | 4.52 | % | 2.71 | % | 2.66 | % | ||||||||
| Efficiency ratio (3) | 140.85 | % | 108.39 | % | 118.66 | % | 110.58 | % | ||||||||
| (1) | Difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. |
| (2) | Net interest income as a percentage of average interest-earning assets. |
| (3) | Non-interest expense divided by the sum of net interest income and non-interest income. |
Source: Wisconsin Mutual Bancorp, MHC, financial statements and other data.
The Company recorded a net loss of $378,000 for the three months ended March 31, 2024, compared to a net loss of $127,000 for the three months ended March 31, 2023, a change of $251,000 year-over-year. The widening of the Company’s net loss year-over-year resulted primarily from a $568,000 decline in net interest income due to increased funding costs and an increase of $23,000 in total non-interest expense, partially offset by an increase of $198,000 in non-interest income.
Feldman Financial Advisors, Inc.
Board of Directors
Wisconsin Mutual Bancorp, MHC
May 14, 2024
Page 5
Total interest income increased by $99,000, or 4.5%, to $2.3 million for the three months ended March 31, 2024, from $2.2 million for the three months ended March 31, 2023, due to a $178,000 increase in interest and fees on loans. The increase in interest and fees on loans was primarily due to an increase of 38 basis points in the weighted average yield on the loan portfolio to 4.55% for the first quarter of 2024 from 4.17% for the same period in 2023. Interest income on securities and other investments declined by $79,000 to $320,000 for the three months ended March 31, 2024 primarily due to a $7.2 million decline in average balance of available-for-sale securities year-over-year. The average balance decline was related to security maturities in the first quarter of 2024.
Total interest expense increased by $667,000, or 82.2%, to $1.5 million for the three months ended March 31, 2024, from $811,000 for the three months ended March 31, 2023. Interest expense on deposits increased $531,000, or 77.7%, to $1.2 million for the three months ended March 31, 2024 from $684,000 for the three months ended March 31, 2023, due primarily to an increase in the weighted average rate paid on certificates of deposit of 191 basis points to 4.19% for the three months ended March 31, 2024 from 2.28% for the three months ended March 31, 2023, combined with an increase in the average balance of such deposits of $7.5 million year-over-year and a $15.6 million decrease in the average balance of lower costing money market accounts year-over-year.
Interest expense on borrowed funds increased by $136,000, or 107.1%, to $263,000 for the quarter ended March 31, 2024, from $127,000 for the quarter months ended March 31, 2023. The rate paid on borrowed funds increased 167 basis points to 4.53% for the three months ended March 31, 2024, from 2.86% for the three months ended March 31, 2023 while the average balance of borrowed funds increased $5.3 million, or 29.6%, to $23.4 million for the three months ended March 31, 2024 from $18.0 million for the three months ended March 31, 2023. The increase in the average balance was generally related to the expanded utilization of borrowings to offset deposit outflows and to support the increase in the loan portfolio.
Net interest income decreased $568,000, or 40.8%, to $824,000 for the three months ended March 31, 2024 from $1.4 million for the three months ended March 31, 2023, primarily due to a decrease in the interest rate spread to 1.33% for the three months ended March 31, 2024 from 2.29% for the three months ended March 31, 2023 and a decrease in the net interest margin to 1.35% for the three months ended March 31, 2024, from 2.20% for the three months ended March 31, 2023.
The decreases in the interest rate spread and the net interest margin were primarily due to an increase in the rates paid on interest-bearing liabilities in conjunction with an increase in other borrowings, partially offset by a 30 basis-point increase in the weighted average yield on interest-earning assets. Based on management’s analysis of the adequacy of allowance for credit losses, no provision was made to the allowance for credit losses for the three months ended March 31, 2023 or 2024.
Feldman Financial Advisors, Inc.
Board of Directors
Wisconsin Mutual Bancorp, MHC
May 14, 2024
Page 6
Non-interest income increased by $198,000, or 73.0%, to $469,000 for the three months ended March 31, 2024 from $271,000 for the three months ended March 31, 2023. The increase resulted primarily from a $55,000 increase in mortgage banking revenue due to increased lending activity, an $86,000 gain on an interest rate swap entered into in late 2023, and an increase of $84,000 in other investment income. These increases were partially offset on a comparative basis as a $61,000 gain on other real estate owned was recognized in the three months ended March 31, 2023 while there was no such gain in the 2024 period. The annualized ratio of non-interest income to average assets increased from 0.40% in the first quarter of 2023 to 0.71% for the first quarter of 2024.
Non-interest expense increased by $23,000, or 1.3%, to $1.8 million for the three months ended March 31, 2024. Data processing and information technology expense increased due to the implementation of additional network services and an increase in other non-interest expense was due in large part to additional accounting and audit-related services. The Company’s other non-interest expense for the quarter ended March 31, 2023 was impacted by a non-recurring expense that was incurred related to the proposed acquisition of another mutual institution that was later terminated.
The increase in non-interest expense when comparing the two quarters was partially offset by a decrease in salary and related benefits and occupancy expenses for the first quarter of 2024, which resulted primarily from the closing of one of the Company’s branch offices in the third quarter of 2023 combined with additional operational efficiencies that were implemented in 2023. The annualized ratio of non-interest expense to average assets increased from 2.64% in the first quarter of 2023 to 2.80% for the first quarter of 2024, mainly due to a decrease in the balance of average assets.
Comparative Group: Recent Financial Comparisons
Exhibits 3 through 7 summarize recent financial comparisons of the Company with the Comparative Group for the available last twelve months (“LTM”) ended March 31, 2024. Similar to the peer group analysis conducted in our original Appraisal, the Company continues to be characterized by lower profitability due to its continuing trend of operating losses. For the LTM ended March 31, 2024, the Company’s ROA measured -0.44% as compared to the Comparative Group’s median ROA of -0.01%. For the LTM ended December 31, 2023, the Company’s ROA amounted to -0.35% as compared to the Comparative Group’s median ROA of 0.23%. The Company’s core ROA (which excludes securities gains/losses and other non-recurring items) measured -0.51% for the LTM ended March 31, 2024 and significantly trailed the Comparative Group’s median core ROA of 0.21%.
Feldman Financial Advisors, Inc.
Board of Directors
Wisconsin Mutual Bancorp, MHC
May 14, 2024
Page 7
Relative to the Comparative Group, the Company’s earnings fundamentals continue to be characterized by a much lower net interest margin, higher level of non-interest income, and a lower operating expense ratio. The Company’s lower net interest margin is attributable primarily to a higher concentration of cash and securities on the balance sheet and comparatively lower level of higher-yielding assets in the form of loans receivable. The Company’s net interest margin measured 1.61% for the LTM ended March 31, 2024 versus the Comparative Group’s median of 2.71%. In addition, the Company’s net interest margin is further strained by the relatively low level of equity on its balance sheet.
The Company’s ratio of non-interest income to average assets was 0.50% for the LTM ended March 31, 2024, reflecting a level above the Comparative Group’s median ratio of 0.42%. The Company’s ratio of non-interest expense measured 2.68% of average assets for the LTM ended March 31, 2024 and compared favorably to the Comparative Group’s median ratio of 2.78% relative to average assets. However, because of the Company’s lower level of net interest income, its efficiency ratio of 131.23% was positioned substantially higher than the Comparative Group’s median of 89.6%.
The Company’s ratio of total non-performing assets to total assets at March 31, 2024 was 0.04% and lower than the Comparative Group’s median ratio of 0.29%. The Company’s ratio of allowance for credit losses to total loans, measuring 0.59% at March 31, 2024, remained below the corresponding Comparative Group’s median of 1.09% and mainly reflected the Company’s historical experience of low levels of loan charge-offs and the risk profile of its loan portfolio characterized by a predominant composition of one- to four-family residential mortgages. The Company’s ratio of total equity to total assets (before the effect of the Conversion) was 4.21% at March 31, 2024, significantly below the Comparative Group’s median of 11.88%.
Comparative Group: Recent Stock Price Performance
Since our original Appraisal as of February 23, 2024, market prices of bank and thrift stocks have performed with mixed results. Stock prices overall pushed higher over the past eleven weeks despite diminished expectations for the number of Federal Reserve rate cuts in 2024. The Consumer Price Index climbed 3.4% in April, down from 3.5% in March. The inflation data revived realistic hopes of rate reductions. Larger capitalized bank and thrift stocks have outperformed smaller capitalized issues since the original Appraisal. U.S. banks and thrifts have encountered sharply rising deposit costs after years of low funding costs, which will restrain earnings growth unless other revenue streams can be expanded to offset the increased interest expense levels.
Exhibit 8 summarizes the net change of the Comparative Group’s stock prices and selected market indexes between February 23, 2024 and May 14, 2024. The S&P U.S. Broad Market Index (“BMI”) for all banks and thrifts increased by 3.1% over this interim period of 11 weeks. Similarly, the broader S&P 500 Stock Index advanced by 3.1% between February 23, 2024 and May 14, 2024. The NASDAQ Bank Index increased by 6.9% over this period. The S&P $250 Million to $1 Billion Asset Bank Index increased by a lesser trendline of 1.8%, while the S&P Midwest Banks Index was up 5.5% over the observed period.
Feldman Financial Advisors, Inc.
Board of Directors
Wisconsin Mutual Bancorp, MHC
May 14, 2024
Page 8
Overall, the Comparative Group displayed mixed results in stock price movement over the past with an overall change reflecting a slight median decline of 2.5%. Most of the Comparative Group companies experienced minimal net changes in stock prices over this period. The median price-to-book value (“P/B”) ratio for the Comparative Group decreased from 77.3% at February 23, 2024 to 71.9% at May 14, 2024. The median price-to-tangible book value (“P/TB”) ratio for the Comparative Group decreased from 77.4% at February 23, 2024 to 71.9% at May 14, 2024. The median price-to-earnings (“P/E”) ratio based on LTM core earnings for the Comparative Group decreased from 18.5x at February 23, 2024 to 17.1x at May 14, 2024.
Valuation Review and Analysis
Since our original Appraisal, there has been no material change in the Company’s operating performance. The Company’s trend of operating losses continued in the first quarter due to its low net interest margin. The Company’s operating expenses continue to exceed the sum of its net interest income and non-interest income. The Company’s ROA measured -0.44% for the LTM ended March 31, 2024 and -0.35% for the LTM ended December 31, 2023. The Comparative Group’s profitability also reflected a decline to a median of -0.01% for the LTM ended March 31, 2024 as compared to 0.20% for the LTM ended December 31, 2023. The Company’s non-performing assets continued to compare favorably to the Comparative Group with the Company’s ratio at 0.04% of total assets versus the Comparative Group’s median ratio of 0.29%.
Market conditions for bank and thrift stocks advanced slightly since February 23, 2024, although the Comparative Group’s stock price performance was more mixed. In our original Appraisal, we concluded that the Company’s pro forma market value should be discounted to the Comparative Group’s trading ratios due to a combination of factors related to earnings growth and viability, financial conditions, dividend policy, relative stock illiquidity, and the new issue discount. As noted above, the Comparative Group’s earnings performance also began to lag for the LTM period ended March 31, 2024.
We believe that the Company’s estimated pro forma market value should continue to reflect a discount to the Comparative Group as a result of the aforementioned factors. As there was an immaterial change in the Comparative Group’s overall stock price levels, we also believe that no change in the Company’s pro forma market value is warranted. Updating for financial data as of March 31, 2024 and the pro forma market value of $8.75 million at the midpoint, we have calculated pro forma P/B and P/TB ratios of 50.5% and 50.5%, respectively. In comparison, the median P/B and P/TB ratios were positioned higher at 71.9% and 71.9%, respectively, based on market price data as of May 14, 2024.
Employing a range of approximately 15% above and below the pro forma midpoint value, the resulting minimum value of approximately $7.4 million reflects a 46.0% P/B ratio and the maximum value of approximately $10.1 million reflects a 54.4% P/B ratio. The adjusted maximum value, computed as an additional 15% above the maximum, is positioned at approximately $11.6 million and a P/B ratio of 58.2%. The Company’s pro forma P/B and P/TB ratios are equivalent since the Company had no intangible assets as of March 31, 2024.
Feldman Financial Advisors, Inc.
Board of Directors
Wisconsin Mutual Bancorp, MHC
May 14, 2024
Page 9
Table 4 summarizes the relative differences between the Company’s pro forma valuation ratios and the Comparative Group’s median ratios. The Company’s pro forma midpoint P/B and P/TB ratios of 50.5% reflect a discount of 29.8% to the Comparative Group median’s P/B and P/TB ratios of 71.9%. The Company’s pro forma minimum P/B and P/TB ratios of 46.0% reflect a discount of 35.9% to the Comparative Group’s median P/B and P/TB ratios of 71.9%. Similar to the valuation analysis in the original Appraisal, the P/E ratios for the Company are shown as not meaningful (“NM”) because of the Company’s negative LTM earnings base. At the minimum level, the Company’s pro forma P/TB ratio of 46.0% is positioned lower than the corresponding P/TB market valuation ratios of all but two of the 45 public thrifts shown in Exhibit 14.
Valuation Conclusion
It is our opinion that, as of May 14, 2024, the estimated pro forma market value of the Company was within a range of $7,437,500 to $10,062,500 with a midpoint of $8,750,000 (the “Valuation Range”). Pursuant to applicable appraisal guidelines, the Valuation Range was based upon a decrease of 15% from the midpoint value to determine the minimum value and an increase of 15% from the midpoint value to establish the maximum value. Assuming an additional increase of 15% above the maximum value would result in an adjusted maximum of $11,571,880. Based on an initial offering price of $10.00 per share, the number of shares to be sold in the Stock Offering is as follows: 743,750 at the minimum, 875,000 at the midpoint, 1,006,250 at the maximum, and 1,157,188 at the adjusted maximum. Exhibit 8 compares the Company’s pro forma valuation ratios to the market valuation ratios of the Comparative Group.
Exhibit 9 compares the Company’s pro forma market valuation ratios to those of the Comparative Group. Exhibit 10 displays the assumptions utilized in calculating the pro forma financial consequences of the Stock Offering. Exhibit 11 displays pro forma financial data at the minimum, midpoint, maximum, and adjusted maximum levels of the Valuation Range. Exhibit 12 provides more detailed data and calculations at the pro forma midpoint level of the Valuation Range. Exhibit 13 computes the percentage differences of the Company’s pro forma valuation ratios with the averages and medians reported by the Comparative Group. Exhibit 14 provides supporting data of financial ratios and trading market valuation ratios for all publicly traded thrift institutions listed on major stock exchanges.
The Valuation Range reported herein will be updated as appropriate. These updates will consider, among other factors, any developments or changes in the Company’s operating performance, financial condition, or management policies, and current conditions in the securities markets for thrift institution common stocks. Should any such new developments or changes be material, in our opinion, to the valuation of the Company, appropriate adjustments to the estimated pro forma market value will be made. The reasons for any such adjustments will be explained in detail at that time. Feldman Financial is not a seller of securities within the meaning of any federal or state securities laws, and any report prepared by Feldman Financial shall not be used as an offer or solicitation with respect to the purchase or sale of any securities.
Feldman Financial Advisors, Inc.
Board of Directors
Wisconsin Mutual Bancorp, MHC
May 14, 2024
Page 10
| Respectfully submitted, | ||
| Feldman Financial Advisors, Inc. | ||
| /s/ Trent R. Feldman | ||
| By: | Trent R. Feldman | |
| President | ||
| /s/ Peter W. L. Williams | ||
| By: | Peter W. L. Williams | |
| Principal | ||
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 1
Consolidated Balance Sheets
Wisconsin Mutual Bancorp, MHC
As of December 31, 2022 and 2023 and March 31, 2024
(Dollars in Thousands)
| March 31, | December 31, | |||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 4,155 | $ | 1,609 | $ | 3,142 | ||||||
| Time deposits with other financial institutions | 4,498 | 4,498 | 4,697 | |||||||||
| Investment securities available for sale | 23,526 | 23,948 | 33,881 | |||||||||
| Investment securities held to maturity | 40,357 | 40,051 | 38,727 | |||||||||
| Federal Home Loan Bank stock | 1,224 | 1,084 | 1,076 | |||||||||
| Loans receivable | 176,531 | 175,372 | 173,333 | |||||||||
| Allowance for credit losses | (1,048 | ) | (1,057 | ) | (909 | ) | ||||||
| Loans, net | 175,484 | 174,315 | 172,424 | |||||||||
| Cash value of life insurance | 7,517 | 7,462 | 7,371 | |||||||||
| Office properties and equipment, net | 2,896 | 2,910 | 3,003 | |||||||||
| Land held for sale | 435 | 435 | 554 | |||||||||
| Deferred tax assets, net | 4,834 | 4,858 | 5,021 | |||||||||
| Other assets | 1,578 | 1,397 | 1,296 | |||||||||
| Total Assets | $ | 266,502 | $ | 262,567 | $ | 271,191 | ||||||
| Liabilities and Equity | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest bearing deposits | $ | 8,803 | $ | 10,250 | $ | 11,224 | ||||||
| Interest-bearing deposits | 221,632 | 220,217 | 237,984 | |||||||||
| Total Deposits | 230,434 | 230,468 | 249,208 | |||||||||
| Borrowed funds | 23,400 | 19,030 | 9,100 | |||||||||
| Advances from borrowers for taxes and insurance | 602 | 280 | 979 | |||||||||
| Other liabilities | 839 | 1,252 | 985 | |||||||||
| Total Liabilities | 255,275 | 251,030 | 260,271 | |||||||||
| Retained earnings | 18,821 | 19,199 | 20,134 | |||||||||
| Accumulated other comprehensive income (loss) | (7,595 | ) | (7,662 | ) | (9,215 | ) | ||||||
| Total Equity | 11,227 | 11,537 | 10,919 | |||||||||
| Total Liabilities and Equity | $ | 266,502 | $ | 262,567 | $ | 271,191 | ||||||
Source: Wisconsin Mutual Bancorp, MHC, financial statements.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 2
Consolidated Income Statements
Wisconsin Mutual Bancorp, MHC
For the Years Ended December 31, 2022 and 2023
And the Three Months Ended March 31, 2023 and 2024
(Dollars in Thousands)
| Three Months Ended | Year Ended | |||||||||||||||
| March 31, | December 31, | |||||||||||||||
| 2024 | 2023 | 2023 | 2022 | |||||||||||||
| Total interest and dividend income | $ | 2,302 | $ | 2,203 | $ | 8,932 | $ | 7,985 | ||||||||
| Total interest expense | 1,478 | 811 | 4,350 | 1,834 | ||||||||||||
| Net interest income | 824 | 1,392 | 4,582 | 6,151 | ||||||||||||
| Provision for credit losses | - | - | 145 | - | ||||||||||||
| Net interest income after provision | 824 | 1,392 | 4,437 | 6,151 | ||||||||||||
| Service charges on deposit accounts | 10 | 13 | 53 | 54 | ||||||||||||
| Interchange income | 57 | 60 | 248 | 252 | ||||||||||||
| Mortgage banking income | 115 | 59 | 355 | 191 | ||||||||||||
| Increase in cash value of life insurance | 54 | 50 | 212 | 192 | ||||||||||||
| Gain on interest rate swap | 86 | - | - | - | ||||||||||||
| Gain on land held for sale | 62 | |||||||||||||||
| Net gain on sale of office properties and equipment | - | - | 208 | - | ||||||||||||
| Gain on sale of repossessed assets | - | - | 71 | - | ||||||||||||
| Other income | 146 | 27 | 302 | 188 | ||||||||||||
| Total non-interest income | 469 | 271 | 1,449 | 877 | ||||||||||||
| Salaries and related benefits | 1,031 | 1,039 | 3,936 | 4,551 | ||||||||||||
| Net occupancy expense | 173 | 199 | 716 | 811 | ||||||||||||
| Data processing | 271 | 245 | 961 | 917 | ||||||||||||
| Advertising | 42 | 46 | 143 | 200 | ||||||||||||
| Net loss on sale of available-for-sale securities | - | - | - | 5,103 | ||||||||||||
| Net loss on sale of office properties and equipment | - | - | - | 180 | ||||||||||||
| Other expense | 315 | 281 | 1,463 | 997 | ||||||||||||
| Total non-interest expense | 1,833 | 1,810 | 7,219 | 12,760 | ||||||||||||
| Income (loss) before provision for income taxes | (540 | ) | (147 | ) | (1,333 | ) | (5,731 | ) | ||||||||
| Provision for (benefit from) income taxes | (162 | ) | (20 | ) | (398 | ) | (1,567 | ) | ||||||||
| Net income (loss) | $ | (378 | ) | $ | (127 | ) | $ | (935 | ) | $ | (4,164 | ) | ||||
Source: Wisconsin Mutual Bancorp, MHC, financial statements.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 3
General Operating Characteristics
As of March 31, 2024
| Tang. | |||||||||||||||||||||||||||
| Total | Total | Total | Common | ||||||||||||||||||||||||
| No. of | IPO | Assets | Deposits | Equity | Equity | ||||||||||||||||||||||
| City/State | Ticker | Exchange | Offices | Date | ($000s) | ($000s) | ($000s) | ($000s) | |||||||||||||||||||
| Wisconsin Mutual Bancorp, MHC | Kaukauna, WI | NA | NA | 5 | NA | 266,502 | 230,434 | 11,227 | 11,227 | ||||||||||||||||||
| Comparative Group Average | 545,630 | 426,185 | 71,010 | 70,467 | |||||||||||||||||||||||
| Comparative Group Median | 452,044 | 348,389 | 72,384 | 72,384 | |||||||||||||||||||||||
| Comparative Group | |||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | Greenfield, WI | BCOW | NASDAQ | 6 | 01/08/19 | 564,249 | 399,285 | 71,510 | 71,510 | ||||||||||||||||||
| Catalyst Bancorp, Inc. | Opelousas, LA | CLST | NASDAQ | 6 | 10/12/21 | 282,049 | 169,637 | 81,361 | 81,361 | ||||||||||||||||||
| Cullman Bancorp, Inc. (1) | Cullman, AL | CULL | NASDAQ | 4 | 10/08/09 | 411,641 | 269,001 | 101,735 | 101,735 | ||||||||||||||||||
| Generations Bancorp NY, Inc. | Seneca Falls, NY | GBNY | NASDAQ | 10 | 07/10/06 | 410,831 | 343,780 | 36,905 | 36,268 | ||||||||||||||||||
| HMN Financial, Inc. | Rochester, MN | HMNF | NASDAQ | 16 | 06/30/94 | 1,151,215 | 1,030,918 | 108,824 | 108,022 | ||||||||||||||||||
| Home Federal Bancorp, Inc. of Louisiana | Shreveport, LA | HFBL | NASDAQ | 11 | 01/18/05 | 643,026 | 578,881 | 52,550 | 48,285 | ||||||||||||||||||
| IF Bancorp, Inc. | Watseka, IL | IROQ | NASDAQ | 8 | 07/07/11 | 904,989 | 681,788 | 72,384 | 72,384 | ||||||||||||||||||
| NSTS Bancorp, Inc. (1) | Waukegan, IL | NSTS | NASDAQ | 3 | 01/18/22 | 256,776 | 168,826 | 77,545 | 77,545 | ||||||||||||||||||
| PB Bankshares, Inc. | Coatesville, PA | PBBK | NASDAQ | 6 | 07/14/21 | 450,434 | 348,389 | 46,769 | 46,769 | ||||||||||||||||||
| TC Bancshares, Inc. | Thomasville, GA | TCBC | NASDAQ | 6 | 07/20/21 | 474,676 | 380,288 | 77,839 | 77,839 | ||||||||||||||||||
| Texas Community Bancshares, Inc. (1) | Mineola, TX | TCBS | NASDAQ | 9 | 07/14/21 | 452,044 | 317,241 | 53,689 | 53,424 | ||||||||||||||||||
(1) As of December 31, 2023.
Source: Wisconsin Mutual Bancorp, MHC; S&P Global.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 4
General Financial Performance Ratios
As of or For the Last Twelve Months Ended March 31, 2024
| Total | Tang. | Net | ||||||||||||||||||||||||||||||||||||||
| Total | Total | Equity/ | Equity/ | Interest | Effcy. | LTM | LTM | Core | Core | |||||||||||||||||||||||||||||||
| Assets | Deposits | Assets | Assets | Margin | Ratio | ROA | ROE | ROA | ROE | |||||||||||||||||||||||||||||||
| ($000s) | ($000s) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||||||
| Wisconsin Mutual Bancorp, MHC | 266,502 | 230,434 | 4.21 | 4.21 | 1.61 | 131.23 | (0.44 | ) | (10.99 | ) | (0.51 | ) | (12.50 | ) | ||||||||||||||||||||||||||
| Comparative Group Average | 545,630 | 426,185 | 15.43 | 15.35 | 2.81 | 91.89 | (0.20 | ) | (0.28 | ) | 0.09 | 1.17 | ||||||||||||||||||||||||||||
| Comparative Group Median | 452,044 | 348,389 | 11.88 | 11.83 | 2.71 | 89.56 | (0.01 | ) | (0.05 | ) | 0.21 | 2.15 | ||||||||||||||||||||||||||||
| All Public Thrift Average | 5,742,803 | 4,083,919 | 13.39 | 12.73 | 3.00 | 79.31 | 0.26 | 2.41 | 0.47 | 4.07 | ||||||||||||||||||||||||||||||
| All Public Thrift Median | 1,521,529 | 1,199,894 | 11.94 | 11.56 | 2.83 | 76.00 | 0.41 | 2.92 | 0.47 | 4.07 | ||||||||||||||||||||||||||||||
| Comparative Group | ||||||||||||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | 564,249 | 399,285 | 12.67 | 12.67 | 2.30 | 110.86 | (1.23 | ) | (9.47 | ) | (0.59 | ) | (4.56 | ) | ||||||||||||||||||||||||||
| Catalyst Bancorp, Inc. | 282,049 | 169,637 | 28.85 | 28.85 | 3.08 | 91.82 | (1.53 | ) | (4.97 | ) | 0.16 | 0.51 | ||||||||||||||||||||||||||||
| Cullman Bancorp, Inc. (1) | 411,641 | 269,001 | 24.71 | 24.71 | 3.89 | 68.41 | 0.95 | 3.94 | 0.95 | 3.93 | ||||||||||||||||||||||||||||||
| Generations Bancorp NY, Inc. | 410,831 | 343,780 | 8.98 | 8.84 | 2.19 | 118.16 | (0.48 | ) | (5.31 | ) | (0.53 | ) | (5.87 | ) | ||||||||||||||||||||||||||
| HMN Financial, Inc. | 1,151,215 | 1,030,918 | 9.45 | 9.39 | 2.71 | 77.84 | 0.50 | 4.73 | 0.49 | 4.65 | ||||||||||||||||||||||||||||||
| Home Federal Bancorp, Inc. of Louisiana | 643,026 | 578,881 | 8.17 | 7.56 | 3.20 | 73.92 | 0.64 | 8.23 | 0.68 | 8.75 | ||||||||||||||||||||||||||||||
| IF Bancorp, Inc. | 904,989 | 681,788 | 8.00 | 8.00 | 2.13 | 89.56 | 0.22 | 2.76 | 0.22 | 2.76 | ||||||||||||||||||||||||||||||
| NSTS Bancorp, Inc. (1) | 256,776 | 168,826 | 30.20 | 30.20 | 2.64 | 114.39 | (1.54 | ) | (4.97 | ) | (0.99 | ) | (3.19 | ) | ||||||||||||||||||||||||||
| PB Bankshares, Inc. | 450,434 | 348,389 | 10.38 | 10.38 | 2.86 | 78.34 | 0.43 | 3.75 | 0.44 | 3.78 | ||||||||||||||||||||||||||||||
| TC Bancshares, Inc. | 474,676 | 380,288 | 16.40 | 16.40 | 3.21 | 98.62 | (0.01 | ) | (0.05 | ) | (0.01 | ) | (0.05 | ) | ||||||||||||||||||||||||||
| Texas Community Bancshares, Inc. (1) | 452,044 | 317,241 | 11.88 | 11.83 | 2.71 | 88.88 | (0.17 | ) | (1.75 | ) | 0.21 | 2.15 | ||||||||||||||||||||||||||||
(1) As of or for the last twelve months ended December 31, 2023.
Source: Wisconsin Mutual Bancorp, MHC; S&P Global.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 5
Income and Expense Analysis
For the Last Twelve Months Ended March 31, 2024
| As a Percent of Average Assets | ||||||||||||||||||||||||||||||||||||||||
| Net | Other | Gains & | Prov. | Gen. & | Intang. | Pre-tax | ||||||||||||||||||||||||||||||||||
| Interest | Interest | Interest | Oper. | Non-rec. | Credit | Admin. | Amort. | Non-rec. | Core | |||||||||||||||||||||||||||||||
| Income | Expense | Income | Income | Income | Losses | Expense | Expense | Expense | Earnings | |||||||||||||||||||||||||||||||
| Wisconsin Mutual Bancorp, MHC | 3.39 | 1.88 | 1.51 | 0.50 | 0.11 | 0.05 | 2.68 | 0.00 | 0.04 | (0.72 | ) | |||||||||||||||||||||||||||||
| Comparative Group Average | 4.31 | 1.64 | 2.67 | 0.40 | (0.32 | ) | 0.07 | 2.77 | 0.03 | 0.03 | 0.23 | |||||||||||||||||||||||||||||
| Comparative Group Median | 4.42 | 1.83 | 2.65 | 0.42 | 0.00 | 0.05 | 2.78 | 0.00 | 0.00 | 0.22 | ||||||||||||||||||||||||||||||
| All Public Thrift Average | 4.67 | 1.84 | 2.84 | 0.49 | (0.14 | ) | 0.06 | 2.56 | 0.08 | 0.05 | 0.71 | |||||||||||||||||||||||||||||
| All Public Thrift Median | 4.52 | 1.79 | 2.73 | 0.34 | 0.00 | 0.04 | 2.48 | 0.00 | 0.00 | 0.61 | ||||||||||||||||||||||||||||||
| Comparative Group | ||||||||||||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | 4.04 | 1.83 | 2.21 | 0.44 | (0.80 | ) | 0.04 | 2.93 | 0.00 | 0.00 | (0.33 | ) | ||||||||||||||||||||||||||||
| Catalyst Bancorp, Inc. | 3.90 | 0.96 | 2.94 | 0.48 | (1.91 | ) | 0.05 | 3.17 | 0.00 | 0.23 | 0.20 | |||||||||||||||||||||||||||||
| Cullman Bancorp, Inc. (1) | 4.68 | 1.03 | 3.65 | 0.41 | 0.00 | 0.05 | 2.78 | 0.00 | 0.00 | 1.23 | ||||||||||||||||||||||||||||||
| Generations Bancorp NY, Inc. | 4.19 | 2.19 | 2.00 | 0.42 | 0.28 | 0.17 | 2.86 | 0.21 | 0.00 | (0.61 | ) | |||||||||||||||||||||||||||||
| HMN Financial, Inc. | 4.02 | 1.38 | 2.65 | 0.72 | 0.01 | 0.06 | 2.62 | 0.00 | 0.00 | 0.68 | ||||||||||||||||||||||||||||||
| Home Federal Bancorp, Inc. of Louisiana | 4.80 | 1.77 | 3.03 | 0.30 | 0.00 | 0.04 | 2.52 | 0.05 | 0.00 | 0.76 | ||||||||||||||||||||||||||||||
| IF Bancorp, Inc. | 4.47 | 2.42 | 2.05 | 0.48 | 0.00 | 0.04 | 2.27 | 0.00 | 0.00 | 0.22 | ||||||||||||||||||||||||||||||
| NSTS Bancorp, Inc. (1) | 3.01 | 0.59 | 2.42 | 0.25 | (0.70 | ) | (0.03 | ) | 3.06 | 0.00 | 0.00 | (0.35 | ) | |||||||||||||||||||||||||||
| PB Bankshares, Inc. | 4.97 | 2.21 | 2.76 | 0.20 | (0.00 | ) | 0.27 | 2.32 | 0.00 | 0.00 | 0.37 | |||||||||||||||||||||||||||||
| TC Bancshares, Inc. | 4.90 | 1.85 | 3.05 | 0.24 | 0.00 | 0.00 | 3.25 | 0.00 | 0.00 | 0.03 | ||||||||||||||||||||||||||||||
| Texas Community Bancshares, Inc. (1) | 4.42 | 1.84 | 2.57 | 0.48 | (0.40 | ) | 0.08 | 2.71 | 0.03 | 0.05 | 0.26 | |||||||||||||||||||||||||||||
(1) For the last twelve months ended December 31, 2023.
Source: Wisconsin Mutual Bancorp, MHC; S&P Global.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 6
Balance Sheet Composition
As of March 31, 2024
| As a Percent of Total Assets | ||||||||||||||||||||||||||||||||||||||||
| Cash and | Net | Real Est. | Intang. | Other | Total | Borrowed | Other | Total | Total | |||||||||||||||||||||||||||||||
| Securities | Loans | Owned | Assets | Assets | Deposits | Funds | Liabs. | Liabs. | Equity | |||||||||||||||||||||||||||||||
| Wisconsin Mutual Bancorp, MHC | 27.68 | 65.85 | 0.00 | 0.00 | 6.47 | 8.64 | 8.78 | 78.36 | 95.79 | 4.21 | ||||||||||||||||||||||||||||||
| Comparative Group Average | 23.89 | 69.90 | 0.01 | 0.09 | 6.12 | 75.29 | 8.13 | 1.14 | 84.57 | 15.43 | ||||||||||||||||||||||||||||||
| Comparative Group Median | 21.96 | 73.99 | 0.00 | 0.00 | 5.68 | 75.34 | 8.52 | 0.97 | 88.12 | 11.88 | ||||||||||||||||||||||||||||||
| All Public Thrift Average | 20.03 | 74.04 | 0.03 | 0.71 | 5.10 | 74.00 | 11.28 | 1.35 | 86.82 | 13.39 | ||||||||||||||||||||||||||||||
| All Public Thrift Median | 16.82 | 75.97 | 0.00 | 0.06 | 4.90 | 75.11 | 8.12 | 1.20 | 88.09 | 11.94 | ||||||||||||||||||||||||||||||
| Comparative Group | ||||||||||||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | 24.44 | 69.87 | 0.00 | 0.00 | 5.68 | 70.76 | 14.18 | 2.38 | 87.33 | 12.67 | ||||||||||||||||||||||||||||||
| Catalyst Bancorp, Inc. | 41.45 | 50.14 | 0.08 | 0.00 | 8.33 | 60.14 | 10.43 | 0.58 | 71.15 | 28.85 | ||||||||||||||||||||||||||||||
| Cullman Bancorp, Inc. (1) | 10.73 | 82.45 | 0.00 | 0.00 | 6.82 | 65.35 | 8.52 | 1.42 | 75.29 | 24.71 | ||||||||||||||||||||||||||||||
| Generations Bancorp NY, Inc. | 10.72 | 80.15 | 0.00 | 0.16 | 8.97 | 83.68 | 6.20 | 1.14 | 91.02 | 8.98 | ||||||||||||||||||||||||||||||
| HMN Financial, Inc. | 18.83 | 74.77 | 0.00 | 0.07 | 6.34 | 89.55 | 0.02 | 0.97 | 90.55 | 9.45 | ||||||||||||||||||||||||||||||
| Home Federal Bancorp, Inc. of Louisiana | 16.82 | 77.94 | 0.00 | 0.66 | 4.58 | 90.02 | 1.46 | 0.35 | 91.83 | 8.17 | ||||||||||||||||||||||||||||||
| IF Bancorp, Inc. | 24.03 | 71.09 | 0.00 | 0.00 | 4.88 | 75.34 | 15.41 | 1.25 | 92.00 | 8.00 | ||||||||||||||||||||||||||||||
| NSTS Bancorp, Inc. (1) | 45.20 | 47.12 | 0.00 | 0.00 | 7.68 | 65.75 | 1.95 | 2.10 | 69.80 | 30.20 | ||||||||||||||||||||||||||||||
| PB Bankshares, Inc. | 21.96 | 73.99 | 0.00 | 0.00 | 4.05 | 77.35 | 11.47 | 0.80 | 89.62 | 10.38 | ||||||||||||||||||||||||||||||
| TC Bancshares, Inc. | 15.72 | 79.41 | 0.00 | 0.00 | 4.87 | 80.12 | 2.75 | 0.73 | 83.60 | 16.40 | ||||||||||||||||||||||||||||||
| Texas Community Bancshares, Inc. (1) | 32.88 | 61.93 | 0.04 | 0.06 | 5.10 | 70.18 | 17.09 | 0.85 | 88.12 | 11.88 | ||||||||||||||||||||||||||||||
(1) As of December 31, 2023.
Source: Wisconsin Mutual Bancorp, MHC; S&P Global.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 7
Growth Rates, Credit Risk, and Loan Composition
As of or For the Last Twelve Months Ended March 31, 2024
| Loan | Loan | Resid. | Other | Non- | ||||||||||||||||||||||||||||||||||||
| Asset | Loan | Deposit | NPLs(1)/ | NPAs(1)/ | Loss | Loss | Real Est. | Real Est. | Real Est. | |||||||||||||||||||||||||||||||
| Growth | Growth | Growth | Total | Total | Allow./ | Allow./ | Loans(2)/ | Loans/ | Loans/ | |||||||||||||||||||||||||||||||
| Rate | Rate | Rate | Loans | Assets | NPLs(1) | Loans | Loans | Loans | Loans | |||||||||||||||||||||||||||||||
| (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||||||
| Wisconsin Mutual Bancorp, MHC | (2.26 | ) | (1.84 | ) | (5.24 | ) | 0.07 | 0.04 | 903.45 | 0.59 | 73.08 | 4.39 | 22.53 | |||||||||||||||||||||||||||
| Comparative Group Average | 4.22 | 8.92 | 2.61 | 0.46 | 0.35 | 294.43 | 1.13 | 46.21 | 37.87 | 15.92 | ||||||||||||||||||||||||||||||
| Comparative Group Median | 5.56 | 8.27 | 2.00 | 0.32 | 0.29 | 328.22 | 1.09 | 38.84 | 37.83 | 15.59 | ||||||||||||||||||||||||||||||
| All Public Thrift Average | 4.75 | 8.51 | 3.45 | 0.60 | 0.50 | 249.48 | 1.06 | 31.23 | 45.45 | 23.32 | ||||||||||||||||||||||||||||||
| All Public Thrift Median | 3.23 | 6.78 | 1.68 | 0.40 | 0.33 | 223.63 | 0.99 | 30.31 | 51.51 | 18.18 | ||||||||||||||||||||||||||||||
| Comparative Group | ||||||||||||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | 2.30 | 7.52 | 7.34 | 0.27 | 0.26 | 336.29 | 0.92 | 24.95 | 58.89 | 16.16 | ||||||||||||||||||||||||||||||
| Catalyst Bancorp, Inc. | 2.24 | 8.27 | (5.61 | ) | 1.01 | 0.60 | 142.33 | 1.44 | 57.70 | 26.71 | 15.59 | |||||||||||||||||||||||||||||
| Cullman Bancorp, Inc. (3) | (2.74 | ) | 2.87 | (8.17 | ) | 0.72 | 0.60 | 132.43 | 0.95 | 52.20 | 30.56 | 17.24 | ||||||||||||||||||||||||||||
| Generations Bancorp NY, Inc. | 5.56 | 6.78 | 2.00 | 0.99 | 0.80 | 92.42 | 0.92 | 50.91 | 4.49 | 44.61 | ||||||||||||||||||||||||||||||
| HMN Financial, Inc. | 7.43 | 9.43 | 7.58 | 0.32 | 0.28 | 413.79 | 1.33 | 33.40 | 57.85 | 8.75 | ||||||||||||||||||||||||||||||
| Home Federal Bancorp, Inc. of Louisiana | (6.26 | ) | 2.79 | (5.78 | ) | 0.29 | 0.23 | 332.45 | 0.97 | 36.90 | 37.83 | 25.27 | ||||||||||||||||||||||||||||
| IF Bancorp, Inc. | 7.36 | 11.20 | (1.41 | ) | 0.00 | 0.00 | NM | 1.19 | 28.07 | 58.03 | 13.90 | |||||||||||||||||||||||||||||
| NSTS Bancorp, Inc. (3) | (2.81 | ) | 17.07 | (5.53 | ) | 0.16 | 0.08 | 588.00 | 0.96 | 92.25 | 7.48 | 0.27 | ||||||||||||||||||||||||||||
| PB Bankshares, Inc. | 14.60 | 7.93 | 17.92 | 0.55 | 0.41 | 242.01 | 1.33 | 32.30 | 61.12 | 6.58 | ||||||||||||||||||||||||||||||
| TC Bancshares, Inc. | 10.46 | 12.93 | 13.21 | 0.40 | 0.32 | 323.99 | 1.28 | 38.84 | 39.35 | 21.81 | ||||||||||||||||||||||||||||||
| Texas Community Bancshares, Inc. (3) | 8.31 | 11.38 | 7.15 | 0.32 | 0.29 | 340.59 | 1.09 | 60.84 | 34.24 | 4.92 | ||||||||||||||||||||||||||||||
| (1) | Includes accruing troubled debt restructurings. |
| (2) | Includes home equity and second mortgage loans. |
| (3) | As of or for the last twelve months ended December 31, 2023. |
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 8
Comparative Group Market Price and Ratio Change
Market Price Data as of February 23, 2024 and May 14, 2024
| 2/23/24 | 5/14/24 | 2/23/24 | 5/14/24 | 2/23/24 | 5/14/24 | 2/23/24 | 5/14/24 | |||||||||||||||||||||||||||||
| Closing | Closing | Price/ | Price/ | Price/ | Price/ | Price/ | Price/ | |||||||||||||||||||||||||||||
| Stock | Stock | Core | Core | Book | Book | Tang. | Tang. | |||||||||||||||||||||||||||||
| Price | Price | Change | EPS | EPS | Change | Value | Value | Change | Book | Book | Change | |||||||||||||||||||||||||
| Company | ($) | ($) | (%) | (x) | (x) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||||
| Comparative Group Median | NA | NA | (2.5 | ) | 18.5 | 17.1 | (7.3 | ) | 77.3 | 71.9 | (7.1 | ) | 77.4 | 71.9 | (7.1 | ) | ||||||||||||||||||||
| Comparative Group Average | NA | NA | (4.4 | ) | 17.7 | 17.3 | (1.9 | ) | 75.9 | 70.9 | (6.6 | ) | 76.7 | 71.6 | (6.7 | ) | ||||||||||||||||||||
| Comparative Group | ||||||||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | 7.50 | 7.21 | (3.8 | ) | NM | NM | NA | 65.5 | 60.6 | (7.4 | ) | 65.5 | 60.6 | (7.4 | ) | |||||||||||||||||||||
| Catalyst Bancorp, Inc. | 11.98 | 11.70 | (2.4 | ) | NM | NM | NA | 67.4 | 65.5 | (2.8 | ) | 67.4 | 65.5 | (2.8 | ) | |||||||||||||||||||||
| Cullman Bancorp, Inc. | 10.75 | 10.48 | (2.5 | ) | 18.8 | 19.5 | 3.4 | 77.4 | 75.2 | (2.8 | ) | 77.4 | 75.2 | (2.8 | ) | |||||||||||||||||||||
| Generations Bancorp NY, Inc. | 10.51 | 10.10 | (3.9 | ) | NM | NM | NA | 67.2 | 59.9 | (10.9 | ) | 68.5 | 61.0 | (11.1 | ) | |||||||||||||||||||||
| HMN Financial, Inc. | 20.27 | 19.50 | (3.8 | ) | 15.2 | 15.4 | NA | 83.9 | 80.0 | (4.7 | ) | 84.5 | 80.6 | (4.7 | ) | |||||||||||||||||||||
| Home Federal Bancorp, Inc. | 12.94 | 10.60 | (18.0 | ) | 7.6 | 7.3 | (4.0 | ) | 77.3 | 63.5 | (17.9 | ) | 84.3 | 69.1 | (18.1 | ) | ||||||||||||||||||||
| IF Bancorp, Inc. | 16.85 | 16.68 | (1.0 | ) | 28.2 | 27.3 | (3.1 | ) | 76.7 | 77.3 | 0.8 | 76.7 | 77.3 | 0.8 | ||||||||||||||||||||||
| NSTS Bancorp, Inc. | 9.75 | 9.63 | (1.2 | ) | NM | NM | NA | 68.6 | 66.0 | (3.8 | ) | 68.6 | 66.0 | (3.8 | ) | |||||||||||||||||||||
| PB Bankshares, Inc. | 14.75 | 12.78 | (13.4 | ) | 18.5 | 17.1 | NA | 86.9 | 71.9 | (17.3 | ) | 86.9 | 71.9 | (17.3 | ) | |||||||||||||||||||||
| TC Bancshares, Inc. | 13.55 | 13.85 | 2.2 | NM | NM | NA | 78.0 | 76.9 | (1.4 | ) | 78.0 | 76.9 | (1.4 | ) | ||||||||||||||||||||||
| Texas Community Bancshares, Inc. | 14.04 | 14.01 | (0.2 | ) | NM | NM | NA | 85.6 | 82.9 | (3.2 | ) | 86.1 | 83.3 | (3.3 | ) | |||||||||||||||||||||
| Index Values | ||||||||||||||||||||||||||||||||||||
| S&P 500 Stock Index | 5,088.8 | 5,246.7 | 3.1 | |||||||||||||||||||||||||||||||||
| S&P Broad Market Index Banks | 392.8 | 405.0 | 3.1 | |||||||||||||||||||||||||||||||||
| NASDAQ Bank Index | 3,543.9 | 3,787.1 | 6.9 | |||||||||||||||||||||||||||||||||
| S&P $250M-$1B Assets Banks | 1,254.6 | 1,277.2 | 1.8 | |||||||||||||||||||||||||||||||||
| S&P Midwest Banks | 587.8 | 620.1 | 5.5 |
Source: S&P Global.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 9
Comparative Pro Forma Market Valuation Analysis
Computed from Market Price Data as of May 14, 2024
| Current | Total | Price/ | Price/ | Price/ | Price/ | Price/ | Total | Tang. | Current | |||||||||||||||||||||||||||||||
| Stock | Market | LTM | Core | Book | Tang. | Total | Equity/ | Equity/ | Dividend | |||||||||||||||||||||||||||||||
| Price | Value | EPS | EPS | Value | Book | Assets | Assets | Assets | Yield | |||||||||||||||||||||||||||||||
| Company | ($) | ($Mil.) | (x) | (x) | (%) | (%) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||||||||||
| Wisconsin Mutual Bancorp, MHC(1) | ||||||||||||||||||||||||||||||||||||||||
| Pro Forma Minimum | 10.00 | 7.4 | NM | NM | 46.04 | 46.04 | 2.74 | 5.95 | 5.95 | 0.00 | ||||||||||||||||||||||||||||||
| Pro Forma Midpoint | 10.00 | 8.8 | NM | NM | 50.48 | 50.48 | 3.21 | 6.36 | 6.36 | 0.00 | ||||||||||||||||||||||||||||||
| Pro Forma Maximum | 10.00 | 10.1 | NM | NM | 54.35 | 54.35 | 3.68 | 6.76 | 6.76 | 0.00 | ||||||||||||||||||||||||||||||
| Pro Forma Adj. Maximum | 10.00 | 11.6 | NM | NM | 58.24 | 58.24 | 4.21 | 7.22 | 7.22 | 0.00 | ||||||||||||||||||||||||||||||
| Comparative Group Average | NA | 49.4 | 17.39 | 17.33 | 70.87 | 71.57 | 10.85 | 15.43 | 15.35 | 1.11 | ||||||||||||||||||||||||||||||
| Comparative Group Median | NA | 51.2 | 17.27 | 17.13 | 71.87 | 71.87 | 7.69 | 11.88 | 11.83 | 0.72 | ||||||||||||||||||||||||||||||
| All Public Thrift Average(2) | NA | 419.4 | 15.67 | 16.51 | 75.72 | 83.12 | 9.72 | 13.39 | 12.73 | 1.95 | ||||||||||||||||||||||||||||||
| All Public Thrift Median(2) | NA | 114.4 | 12.02 | 12.03 | 71.65 | 72.34 | 8.44 | 11.94 | 11.56 | 1.14 | ||||||||||||||||||||||||||||||
| Comparative Group | ||||||||||||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | 7.21 | 42.1 | NM | NM | 60.64 | 60.64 | 7.69 | 12.67 | 12.67 | 0.00 | ||||||||||||||||||||||||||||||
| Catalyst Bancorp, Inc. | 11.70 | 53.3 | NM | NM | 65.52 | 65.52 | 18.90 | 28.85 | 28.85 | 0.00 | ||||||||||||||||||||||||||||||
| Cullman Bancorp, Inc. | 10.48 | 73.2 | 19.41 | 19.48 | 75.21 | 75.21 | 18.59 | 24.71 | 24.71 | 1.15 | ||||||||||||||||||||||||||||||
| Generations Bancorp NY, Inc. | 10.10 | 22.6 | NM | NM | 59.90 | 60.96 | 5.32 | 8.98 | 8.84 | 0.00 | ||||||||||||||||||||||||||||||
| HMN Financial, Inc. | 19.50 | 84.9 | 15.12 | 15.39 | 79.96 | 80.56 | 7.56 | 9.45 | 9.39 | 2.05 | ||||||||||||||||||||||||||||||
| Home Federal Bancorp, Inc. of Louisiana | 10.60 | 32.0 | 7.80 | 7.34 | 63.47 | 69.08 | 5.19 | 8.17 | 7.56 | 4.71 | ||||||||||||||||||||||||||||||
| IF Bancorp, Inc. | 16.68 | 53.5 | 27.34 | 27.34 | 77.26 | 77.26 | 6.18 | 8.00 | 8.00 | 2.40 | ||||||||||||||||||||||||||||||
| NSTS Bancorp, Inc. | 9.63 | 51.2 | NM | NM | 66.01 | 66.01 | 19.93 | 30.20 | 30.20 | 0.00 | ||||||||||||||||||||||||||||||
| PB Bankshares, Inc. | 12.78 | 31.2 | 17.27 | 17.13 | 71.87 | 71.87 | 7.46 | 10.38 | 10.38 | 0.00 | ||||||||||||||||||||||||||||||
| TC Bancshares, Inc. | 13.85 | 55.2 | NM | NM | 76.89 | 76.89 | 12.61 | 16.40 | 16.40 | 0.72 | ||||||||||||||||||||||||||||||
| Texas Community Bancshares, Inc. | 14.01 | 44.7 | NM | NM | 82.86 | 83.27 | 9.88 | 11.88 | 11.83 | 1.14 | ||||||||||||||||||||||||||||||
| (1) | Assumes Conversion is completed at an estimated pro forma market value of $7.4 million at the minimum, $8.8 million at the midpoint, $10.1 million at the maximum and $11.6 million at the adjusted maximum. |
| (2) | All public thrifts traded on a major exchange, excluding mutual holding companies and companies being acquired in announced merger transactions. |
Source: Wisconsin Mutual Bancorp, MHC; S&P Global; Feldman Financial Advisors, Inc.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 10
Pro Forma Assumptions for the Stock Offering
| 1. | The total amount of the net offering proceeds was fully invested at the beginning of the applicable period. |
| 2. | The net offering proceeds are invested to yield a return of 4.21%, which represented the yield on five-year U.S. Treasury securities at March 31, 2024. The effective income tax rate was assumed to be 21.0%, resulting in a net after-tax yield of 3.33%. |
| 3. | It is assumed that 7.0% of the total shares of common stock to be sold in the Stock Offering will be acquired by the Company’s employee stock ownership plan (“ESOP”). Pro forma adjustments have been made to earnings and equity to reflect the impact of the ESOP. The annual expense is estimated based on a 20-year loan to the ESOP from the Company. No re-investment is assumed on proceeds used to fund the ESOP. |
| 4. | It is assumed that that the Company’s restricted stock plan (“RSP”) will purchase in the open market a number of shares equal to 3.0% of the total shares issued in the Stock Offering. Also, it is assumed that these shares are acquired at the initial public offering price of $10.00 per share. Pro forma adjustments have been made to earnings and equity to reflect the impact of the RSP. The annual expense is estimated based on a five-year vesting period. No re-investment is assumed on proceeds used to fund the RSP. |
| 5. | It is assumed that an additional 10.0% of the total shares sold in the Stock Offering will be reserved for issuance by the Company’s stock option plan. The pro forma net income has been adjusted to reflect the expense associated with the granting of options at an assumed options value of $4.16 per option. It is further assumed that options for all shares reserved under the plan were granted to plan participants at the beginning of the period and 25.0% were non-qualified options for income tax purposes, the options would vest at a rate of 20.0% per year, and compensation expense will be recognized on a straight-line basis over the five-year vesting period |
| 6. | The fair value of stock options has been estimated at $4.16 per option using the Black-Scholes option pricing model with the following assumptions: a grant-date share price and option exercise price of $10.00; dividend yield of 0.00%; an expected option life of 10 years; a risk-free interest rate of 3.88%; and a volatility rate of 21.29% based a selected bank stock index. |
| 7. | Total offering expenses are estimated at approximately $1.8 million. |
| 8. | No effect has been given to withdrawals from deposit accounts for the purpose of purchasing common stock in the Stock Offering. |
| 9. | No effect has been given in the pro forma equity calculation for the assumed earnings on the net proceeds. |
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 11
Wisconsin Mutual Bancorp, MHC
Pro Forma Conversion Valuation Range
Historical Financial Data as of March 31, 2024
(Dollars in Thousands, Except Per Share Data)
| MINIMUM | MIDPOINT | MAXIMUM | ADJ. MAX. | |||||||||||||
| Shares sold in the offering | 743,750 | 875,000 | 1,006,250 | 1,157,188 | ||||||||||||
| Offering price | $ | 10.00 | $ | 10.00 | $ | 10.00 | $ | 10.00 | ||||||||
| Gross offering proceeds | $ | 7,438 | $ | 8,750 | $ | 10,063 | $ | 11,572 | ||||||||
| Less: estimated offering expenses | (1,768 | ) | (1,768 | ) | (1,768 | ) | (1,768 | ) | ||||||||
| Net offering proceeds | 5,670 | 6,982 | 8,295 | 9,804 | ||||||||||||
| Less: ESOP purchase | (521 | ) | (613 | ) | (704 | ) | (810 | ) | ||||||||
| Less: RSP purchase | (223 | ) | (263 | ) | (302 | ) | (347 | ) | ||||||||
| Net investable proceeds | $ | 4,926 | $ | 6,106 | $ | 7,289 | $ | 8,647 | ||||||||
| Net income - LTM ended 3/31/24 | $ | (1,186 | ) | $ | (1,186 | ) | $ | (1,186 | ) | $ | (1,186 | ) | ||||
| Pro forma income on net proceeds | 164 | 203 | 242 | 288 | ||||||||||||
| Pro forma ESOP adjustment | (21 | ) | (24 | ) | (28 | ) | (32 | ) | ||||||||
| Pro forma RSP adjustment | (35 | ) | (42 | ) | (48 | ) | (55 | ) | ||||||||
| Pro forma stock option adjustment | (59 | ) | (69 | ) | (79 | ) | (91 | ) | ||||||||
| Pro forma net income | $ | (1,137 | ) | $ | (1,118 | ) | $ | (1,099 | ) | $ | (1,076 | ) | ||||
| Pro forma earnings per share | $ | (1.64 | ) | $ | (1.37 | ) | $ | (1.17 | ) | $ | (1.00 | ) | ||||
| Core earnings - LTM ended 3/31/24 | $ | (1,343 | ) | $ | (1,343 | ) | $ | (1,343 | ) | $ | (1,343 | ) | ||||
| Pro forma income on net proceeds | 164 | 203 | 242 | 288 | ||||||||||||
| Pro forma ESOP adjustment | (21 | ) | (24 | ) | (28 | ) | (32 | ) | ||||||||
| Pro forma RSP adjustment | (35 | ) | (42 | ) | (48 | ) | (55 | ) | ||||||||
| Pro forma stock option adjustment | (59 | ) | (69 | ) | (79 | ) | (91 | ) | ||||||||
| Pro forma core earnings | $ | (1,294 | ) | $ | (1,275 | ) | $ | (1,256 | ) | $ | (1,233 | ) | ||||
| Pro forma core earnings per share | $ | (1.86 | ) | $ | (1.56 | ) | $ | (1.34 | ) | $ | (1.14 | ) | ||||
| Total equity - 3/31/24 | $ | 11,227 | $ | 11,227 | $ | 11,227 | $ | 11,227 | ||||||||
| Net offering proceeds | 5,670 | 6,982 | 8,295 | 9,804 | ||||||||||||
| Less: ESOP purchase | (521 | ) | (613 | ) | (704 | ) | (810 | ) | ||||||||
| Less: RSP purchase | (223 | ) | (263 | ) | (302 | ) | (347 | ) | ||||||||
| Pro forma total equity | $ | 16,153 | $ | 17,333 | $ | 18,516 | $ | 19,874 | ||||||||
| Pro forma book value | $ | 21.72 | $ | 19.81 | $ | 18.40 | $ | 17.17 | ||||||||
| Tangible equity - 3/31/24 | $ | 11,227 | $ | 11,227 | $ | 11,227 | $ | 11,227 | ||||||||
| Net offering proceeds | 5,670 | 6,982 | 8,295 | 9,804 | ||||||||||||
| Less: ESOP purchase | (521 | ) | (613 | ) | (704 | ) | (810 | ) | ||||||||
| Less: RSP purchase | (223 | ) | (263 | ) | (302 | ) | (347 | ) | ||||||||
| Pro forma tangible equity | $ | 16,153 | $ | 17,333 | $ | 18,516 | $ | 19,874 | ||||||||
| Pro forma tangible book value | $ | 21.72 | $ | 19.81 | $ | 18.40 | $ | 17.17 | ||||||||
| Total assets - 3/31/24 | $ | 266,502 | $ | 266,502 | $ | 266,502 | $ | 266,502 | ||||||||
| Net offering proceeds | 5,670 | 6,982 | 8,295 | 9,804 | ||||||||||||
| Less: ESOP purchase | (521 | ) | (613 | ) | (704 | ) | (810 | ) | ||||||||
| Less: RSP purchase | (223 | ) | (263 | ) | (302 | ) | (347 | ) | ||||||||
| Pro forma total assets | $ | 271,428 | $ | 272,608 | $ | 273,791 | $ | 275,149 | ||||||||
| Pro Forma Ratios: | ||||||||||||||||
| Price / Book Value | 46.04 | % | 50.48 | % | 54.35 | % | 58.24 | % | ||||||||
| Price / Tangible Book Value | 46.04 | % | 50.48 | % | 54.35 | % | 58.24 | % | ||||||||
| Price / LTM Earnings Per Share | NM | NM | NM | NM | ||||||||||||
| Price / Core Earnings Per Share | NM | NM | NM | NM | ||||||||||||
| Price / Total Assets | 2.74 | % | 3.21 | % | 3.68 | % | 4.21 | % | ||||||||
| Total Equity / Assets | 5.95 | % | 6.36 | % | 6.76 | % | 7.22 | % | ||||||||
| Tangible Equity / Assets | 5.95 | % | 6.36 | % | 6.76 | % | 7.22 | % | ||||||||
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 12
Pro Forma Conversion Analysis at the Midpoint Value
Wisconsin Mutual Bancorp, MHC
Historical Financial Data as of March 31, 2024
| Valuation Parameters | Symbol | Data | ||||
| Net income -- LTM | Y | $ | (1,186,000 | ) | ||
| Core earnings -- LTM | Y | (1,343,000 | ) | |||
| Net worth | B | 11,227,000 | ||||
| Tangible net worth | B | 11,227,000 | ||||
| Total assets | A | 266,502,000 | ||||
| Expenses in conversion | X | 1,768,000 | ||||
| Other proceeds not reinvested | O | 876,000 | ||||
| ESOP purchase | E | 613,000 | ||||
| ESOP expense (pre-tax) | F | 30,380 | ||||
| RSP purchase | M | 263,000 | ||||
| RSP expense (pre-tax) | N | 53,165 | ||||
| Stock option expense (pre-tax) | Q | 72,800 | ||||
| Option expense tax-deductible | D | 25.00 | % | |||
| Re-investment rate (after-tax) | R | 3.33 | % | |||
| Tax rate | T | 21.00 | % | |||
| Shares for EPS | S | 93.35 | % | |||
| Pro Forma Valuation Ratios at Midpoint Value | ||||||
| Price / LTM EPS | P/E | NM | ||||
| Price / Core EPS | P/E | NM | ||||
| Price / Book Value | P/B | 50.48 | % | |||
| Price / Tangible Book | P/TB | 50.48 | % | |||
| Price / Assets | P/A | 3.21 | % | |||
| Pro Forma Calculation at Midpoint Value | Based on | |||
| V = | (P/E / S)*((Y-R*(O+X)-(F+N)*(1-T)-(Q-Q*D*T))) | = | $8,750,000 | [LTM earnings] |
| 1 - (P/E / S) * R | ||||
| V = | (P/E / S)*((Y-R*(O+X)-(F+N)*(1-T)-(Q-Q*D*T)) | = | $8,750,000 | [Core earnings] |
| 1 - (P/E / S) * R | ||||
| V = | P/B * (B - X - E - M ) | = | $8,750,000 | [Book value] |
| 1 - P/B | ||||
| V = | P/TB * (B - X - E - M ) | = | $8,750,000 | [Tangible book] |
| 1 - P/TB | ||||
| V = | P/A * (A - X - E - M ) | = | $8,750,000 | [Total assets] |
| 1 - P/A | ||||
| Pro Forma | Valuation | ||||
| Valuation Range | Range | ||||
| Minimum = | $8,750,000 | x | 0.8500 | = | $7,437,500 |
| Midpoint = | $8,750,000 | x | 1.0000 | = | $8,750,000 |
| Maximum = | $8,750,000 | x | 1.1500 | = | $10,062,500 |
| Adj. Max. = | $10,062,500 | x | 1.1500 | = | $11,571,880 |
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 13
Comparative Valuation Ratio Analysis
Pro Forma Conversion Valuation
Computed from Market Price Data as of May 14, 2024
| Wisconsin | ||||||||||||||||||||
| Mutual | Comparative | All Public | ||||||||||||||||||
| Valuation | Bancorp, | Group | Thrifts (1) | |||||||||||||||||
| Ratio | Symbol | MHC | Average | Median | Average | Median | ||||||||||||||
| Price / LTM EPS | P/E | 17.39 | 17.27 | 15.67 | 12.02 | |||||||||||||||
| Minimum | (x) | NM | NM | NM | NM | NM | ||||||||||||||
| Midpoint | NM | NM | NM | NM | NM | |||||||||||||||
| Maximum | NM | NM | NM | NM | NM | |||||||||||||||
| Adjusted Maximum | NM | NM | NM | NM | NM | |||||||||||||||
| Price / Core EPS | P/E | 17.33 | 17.13 | 16.51 | 12.03 | |||||||||||||||
| Minimum | (x) | NM | NM | NM | NM | NM | ||||||||||||||
| Midpoint | NM | NM | NM | NM | NM | |||||||||||||||
| Maximum | NM | NM | NM | NM | NM | |||||||||||||||
| Adjusted Maximum | NM | NM | NM | NM | NM | |||||||||||||||
| Price / Book Value | P/B | 70.87 | 71.87 | 75.72 | 71.65 | |||||||||||||||
| Minimum | (%) | 46.04 | -35.0 | % | -35.9 | % | -39.2 | % | -35.7 | % | ||||||||||
| Midpoint | 50.48 | -28.8 | % | -29.8 | % | -33.3 | % | -29.6 | % | |||||||||||
| Maximum | 54.35 | -23.3 | % | -24.4 | % | -28.2 | % | -24.2 | % | |||||||||||
| Adjusted Maximum | 58.24 | -17.8 | % | -19.0 | % | -23.1 | % | -18.7 | % | |||||||||||
| Price / Tangible Book | P/TB | 71.57 | 71.87 | 83.12 | 72.34 | |||||||||||||||
| Minimum | (%) | 46.04 | -35.7 | % | -35.9 | % | -44.6 | % | -36.4 | % | ||||||||||
| Midpoint | 50.48 | -29.5 | % | -29.8 | % | -39.3 | % | -30.2 | % | |||||||||||
| Maximum | 54.35 | -24.1 | % | -24.4 | % | -34.6 | % | -24.9 | % | |||||||||||
| Adjusted Maximum | 58.24 | -18.6 | % | -19.0 | % | -29.9 | % | -19.5 | % | |||||||||||
| Price / Total Assets | P/A | 10.85 | 7.69 | 9.72 | 8.44 | |||||||||||||||
| Minimum | (%) | 2.74 | -74.7 | % | -64.3 | % | -71.8 | % | -67.5 | % | ||||||||||
| Midpoint | 3.21 | -70.4 | % | -58.2 | % | -67.0 | % | -62.0 | % | |||||||||||
| Maximum | 3.68 | -66.1 | % | -52.2 | % | -62.2 | % | -56.5 | % | |||||||||||
| Adjusted Maximum | 4.21 | -61.2 | % | -45.3 | % | -56.7 | % | -50.2 | % | |||||||||||
(1) Excludes companies subject to mutual holding company ownership or pending acquisition.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 14
Financial and Market Data for All Public Thrifts
| Total | Tang. | Closing | Total | Price/ | Price/ | Price/ | Price/ | Price/ | |||||||||||||||||||||||||||||||||||
| Total | Equity/ | Equity/ | LTM | LTM | Price | Market | LTM | Core | Book | Tang. | Total | Div. | |||||||||||||||||||||||||||||||
| Assets | Assets | Assets | ROA | ROE | 5/14/24 | Value | EPS | EPS | Value | Book | Assets | Yield | |||||||||||||||||||||||||||||||
| Company | State | Ticker | ($Mil.) | (%) | (%) | (%) | (%) | ($) | ($Mil.) | (x) | (x) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||||||||
| All Public Thrifts (1) | |||||||||||||||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | WI | BCOW | 564 | 12.67 | 12.67 | (1.23 | ) | (9.47 | ) | 7.21 | 42.1 | NM | NM | 60.6 | 60.6 | 7.69 | 0.00 | ||||||||||||||||||||||||||
| Affinity Bancshares, Inc. | GA | AFBI | 870 | 14.18 | 12.33 | 0.70 | 5.06 | 17.04 | 109.3 | 18.5 | 18.1 | 88.7 | 104.2 | 12.57 | 0.00 | ||||||||||||||||||||||||||||
| Axos Financial, Inc. | NV | AX | 22,642 | 9.70 | 9.12 | 2.07 | 21.71 | 61.80 | 3,520.6 | 8.4 | 9.7 | 160.6 | 171.9 | 15.58 | 0.00 | ||||||||||||||||||||||||||||
| Blue Foundry Bancorp | NJ | BLFY | 2,028 | 17.27 | 17.25 | (0.44 | ) | (2.49 | ) | 9.15 | 219.0 | NM | NM | 62.6 | 62.7 | 10.81 | 0.00 | ||||||||||||||||||||||||||
| Broadway Financial Corporation | CA | BYFC | 1,231 | 22.53 | 20.72 | 0.39 | 1.68 | 4.60 | 27.2 | 9.6 | 9.2 | 33.5 | 43.1 | 3.95 | 0.00 | ||||||||||||||||||||||||||||
| BV Financial, Inc. | MD | BVFL | 893 | 22.60 | 21.25 | 1.47 | 8.12 | 10.45 | 118.9 | 8.6 | 8.7 | 58.9 | 63.8 | 13.32 | 0.00 | ||||||||||||||||||||||||||||
| Capitol Federal Financial, Inc. | KS | CFFN | 9,721 | 10.54 | 10.45 | (1.14 | ) | (11.00 | ) | 5.12 | 664.1 | NM | 13.9 | 66.3 | 67.0 | 6.99 | 6.64 | ||||||||||||||||||||||||||
| Carver Bancorp, Inc. | NY | CARV | 775 | 5.51 | 5.51 | (0.62 | ) | (10.43 | ) | 1.91 | 9.5 | NM | NM | 47.8 | 47.8 | 1.28 | 0.00 | ||||||||||||||||||||||||||
| Catalyst Bancorp, Inc. | LA | CLST | 282 | 28.85 | 28.85 | (1.53 | ) | (4.97 | ) | 11.70 | 53.3 | NM | NM | 65.5 | 65.5 | 18.90 | 0.00 | ||||||||||||||||||||||||||
| Central Plains Bancshares, Inc. | NE | CPBI | 454 | 17.12 | NA | NA | 9.51 | 10.07 | 41.6 | NA | NA | NA | NA | NA | 0.00 | ||||||||||||||||||||||||||||
| Cullman Bancorp, Inc. | AL | CULL | 412 | 24.71 | 24.71 | 0.95 | 3.94 | 10.48 | 73.2 | 19.4 | 19.5 | 75.2 | 75.2 | 18.59 | 1.15 | ||||||||||||||||||||||||||||
| ECB Bancorp, Inc. | MA | ECBK | 1,303 | 12.72 | 12.72 | 0.34 | 2.53 | 12.22 | 112.9 | 24.9 | 25.3 | 68.1 | 68.1 | 8.67 | 0.00 | ||||||||||||||||||||||||||||
| ESSA Bancorp, Inc. | PA | ESSA | 2,191 | 10.20 | 9.63 | 0.83 | 8.10 | 17.12 | 162.6 | 9.3 | 9.1 | 77.6 | 82.7 | 7.92 | 3.50 | ||||||||||||||||||||||||||||
| First Northwest Bancorp | WA | FNWB | 2,240 | 7.17 | 7.12 | (0.04 | ) | (0.58 | ) | 10.86 | 95.2 | NM | 17.8 | 63.9 | 64.3 | 4.58 | 2.58 | ||||||||||||||||||||||||||
| First Seacoast Bancorp, Inc. | NH | FSEA | 571 | 11.67 | 11.62 | (1.93 | ) | (15.10 | ) | 9.14 | 43.0 | NM | NM | 69.7 | 69.9 | 8.13 | 0.00 | ||||||||||||||||||||||||||
| FS Bancorp, Inc. | WA | FSBW | 2,970 | 9.36 | 8.74 | 1.24 | 14.14 | 33.02 | 254.2 | 7.2 | 5.7 | 92.7 | 99.9 | 8.68 | 3.15 | ||||||||||||||||||||||||||||
| Generations Bancorp NY, Inc. | NY | GBNY | 411 | 8.98 | 8.84 | (0.48 | ) | (5.31 | ) | 10.10 | 22.6 | NM | NM | 59.9 | 61.0 | 5.32 | 0.00 | ||||||||||||||||||||||||||
| HarborOne Bancorp, Inc. | MA | HONE | 5,862 | 9.85 | 8.92 | 0.28 | 2.71 | 10.79 | 450.6 | 29.2 | 18.6 | 84.2 | 94.0 | 8.29 | 2.97 | ||||||||||||||||||||||||||||
| Hingham Institution for Savings | MA | HIFS | 4,529 | 9.15 | 9.15 | 0.58 | 6.08 | 187.57 | 408.9 | 16.6 | 38.0 | 98.7 | 98.7 | 9.03 | 1.34 | ||||||||||||||||||||||||||||
| HMN Financial, Inc. | MN | HMNF | 1,151 | 9.45 | 9.39 | 0.50 | 4.73 | 19.50 | 84.9 | 15.1 | 15.4 | 80.0 | 80.6 | 7.56 | 2.05 | ||||||||||||||||||||||||||||
| Home Federal Bancorp, Inc. | LA | HFBL | 643 | 8.17 | 7.56 | 0.64 | 8.23 | 10.60 | 32.0 | 7.8 | 7.3 | 63.5 | 69.1 | 5.19 | 4.71 | ||||||||||||||||||||||||||||
| IF Bancorp, Inc. | IL | IROQ | 905 | 8.00 | 8.00 | 0.22 | 2.76 | 16.68 | 53.5 | 27.3 | 27.3 | 77.3 | 77.3 | 6.18 | 2.40 | ||||||||||||||||||||||||||||
| Kearny Financial Corp. | NJ | KRNY | 7,842 | 10.83 | NA | 0.19 | 1.81 | 5.65 | 351.6 | 22.6 | 12.0 | 42.9 | 57.4 | 4.64 | 7.79 | ||||||||||||||||||||||||||||
| Magyar Bancorp, Inc. | NJ | MGYR | 929 | 11.59 | 11.59 | 0.85 | 7.35 | 11.07 | 73.7 | 9.2 | 9.2 | 67.9 | 67.9 | 7.87 | 1.81 | ||||||||||||||||||||||||||||
| New York Community Bancorp, Inc. | NY | NYCB | 112,900 | 7.43 | 6.95 | (2.08 | ) | (23.16 | ) | 3.89 | 3,192.6 | NM | NM | 39.7 | 42.9 | 2.78 | 1.03 | ||||||||||||||||||||||||||
| Northeast Community Bancorp, Inc. | NY | NECB | 1,867 | 15.48 | 15.48 | 2.75 | 16.80 | 17.09 | 200.6 | 5.3 | 5.3 | 83.2 | 83.2 | 12.88 | 2.34 | ||||||||||||||||||||||||||||
| Northfield Bancorp, Inc. | NJ | NFBK | 5,852 | 11.94 | 11.31 | 0.57 | 4.66 | 9.15 | 405.7 | 12.2 | 12.2 | 58.2 | 61.9 | 6.95 | 5.68 | ||||||||||||||||||||||||||||
| NSTS Bancorp, Inc. | IL | NSTS | 257 | 30.20 | 30.20 | (1.54 | ) | (4.97 | ) | 9.63 | 51.2 | NM | NM | 66.0 | 66.0 | 19.93 | 0.00 | ||||||||||||||||||||||||||
| PB Bankshares, Inc. | PA | PBBK | 450 | 10.38 | 10.38 | 0.43 | 3.75 | 12.78 | 31.2 | 17.3 | 17.1 | 71.9 | 71.9 | 7.46 | 0.00 | ||||||||||||||||||||||||||||
| Ponce Financial Group, Inc. | NY | PDLB | 2,819 | 17.51 | 17.51 | 0.20 | 1.11 | 8.71 | 195.2 | 34.8 | NA | 77.1 | 77.1 | 7.99 | 0.00 | ||||||||||||||||||||||||||||
| Provident Bancorp, Inc. | MA | PVBC | 1,659 | 13.70 | 13.70 | 0.83 | 6.34 | 9.37 | 156.1 | 11.2 | 11.2 | 72.8 | 72.8 | 9.98 | 0.00 |
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 14 (continued)
Financial and Market Data for All Public Thrifts
| Total | Tang. | Closing | Total | Price/ | Price/ | Price/ | Price/ | Price/ | |||||||||||||||||||||||||||||||||||
| Total | Equity/ | Equity/ | LTM | LTM | Price | Market | LTM | Core | Book | Tang. | Total | Div. | |||||||||||||||||||||||||||||||
| Assets | Assets | Assets | ROA | ROE | 5/14/24 | Value | EPS | EPS | Value | Book | Assets | Yield | |||||||||||||||||||||||||||||||
| Company | State | Ticker | ($Mil.) | (%) | (%) | (%) | (%) | ($) | ($Mil.) | (x) | (x) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||||||||
| Provident Financial Holdings, Inc. | CA | PROV | 1,290 | 10.04 | 10.04 | 0.56 | 5.51 | 12.50 | 86.0 | 12.0 | 12.0 | 66.6 | 66.6 | 6.68 | 4.48 | ||||||||||||||||||||||||||||
| Provident Financial Services, Inc. | NJ | PFS | 14,131 | 12.00 | 9.05 | 0.86 | 7.22 | 15.95 | 1,207.4 | 10.0 | 9.2 | 71.4 | 97.8 | 8.57 | 6.02 | ||||||||||||||||||||||||||||
| Riverview Bancorp, Inc. | WA | RVSB | 1,522 | 10.23 | 8.58 | 0.24 | 2.43 | 4.05 | 85.5 | 22.5 | 10.9 | 55.0 | 66.7 | 5.62 | 5.93 | ||||||||||||||||||||||||||||
| SR Bancorp, Inc. | NJ | SRBK | 1,053 | 18.93 | 16.66 | (0.82 | ) | (4.56 | ) | 9.20 | 87.5 | NA | NA | 43.9 | 51.3 | 8.31 | 0.00 | ||||||||||||||||||||||||||
| Sterling Bancorp, Inc. | MI | SBT | 2,415 | 13.55 | 13.55 | 0.32 | 2.42 | 5.02 | 261.2 | 31.4 | 30.8 | 79.8 | 79.8 | 10.82 | 0.00 | ||||||||||||||||||||||||||||
| TC Bancshares, Inc. | GA | TCBC | 475 | 16.40 | 16.40 | (0.01 | ) | (0.05 | ) | 13.85 | 55.2 | NM | NM | 76.9 | 76.9 | 12.61 | 0.72 | ||||||||||||||||||||||||||
| Texas Community Bancshares, Inc. | TX | TCBS | 452 | 11.88 | 11.83 | (0.17 | ) | (1.75 | ) | 14.01 | 44.7 | NM | 47.3 | 82.9 | 83.3 | 9.84 | 1.14 | ||||||||||||||||||||||||||
| Timberland Bancorp, Inc. | WA | TSBK | 1,907 | 12.51 | 11.79 | 1.36 | 10.73 | 25.38 | 203.6 | 8.3 | 8.3 | 85.3 | 91.3 | 10.68 | 3.78 | ||||||||||||||||||||||||||||
| Triumph Financial, Inc. | TX | TFIN | 5,575 | 15.65 | 11.56 | 0.63 | 3.98 | 75.38 | 1,749.7 | NM | 44.7 | 212.6 | 308.7 | 31.81 | 0.00 | ||||||||||||||||||||||||||||
| TrustCo Bank Corp NY | NY | TRST | 6,180 | 10.51 | 10.50 | 0.87 | 8.42 | 28.52 | 542.6 | 10.2 | 9.8 | 83.6 | 83.6 | 8.78 | 5.05 | ||||||||||||||||||||||||||||
| Waterstone Financial, Inc. | WI | WSBF | 2,235 | 15.13 | 15.10 | 0.47 | 2.92 | 12.49 | 232.2 | 24.0 | 24.0 | 73.6 | 73.7 | 11.13 | 4.80 | ||||||||||||||||||||||||||||
| Western New England Bancorp, Inc. | MA | WNEB | 2,557 | 9.22 | 8.71 | 0.50 | 5.43 | 6.62 | 141.8 | 11.0 | 10.6 | 60.7 | 64.6 | 5.60 | 4.23 | ||||||||||||||||||||||||||||
| William Penn Bancorporation | PA | WMPN | 833 | 15.09 | 14.56 | 0.10 | 0.60 | 12.10 | 114.4 | NM | NM | 91.0 | 95.0 | 13.74 | 0.99 | ||||||||||||||||||||||||||||
| WSFS Financial Corporation | DE | WSFS | 20,579 | 11.98 | 7.51 | 1.34 | 11.59 | 46.66 | 2,804.0 | 10.4 | 9.9 | 113.3 | 189.6 | 13.62 | 1.29 | ||||||||||||||||||||||||||||
| Average | 5,743 | 13.39 | 12.73 | 0.26 | 2.41 | NA | 419.4 | 15.7 | 16.5 | 75.7 | 83.1 | 9.72 | 1.95 | ||||||||||||||||||||||||||||||
| Median | 1,522 | 11.94 | 11.56 | 0.41 | 2.92 | NA | 114.4 | 12.0 | 12.0 | 71.7 | 72.3 | 8.44 | 1.14 |
(1) Public thrifts traded on NYSE, NYSE American, and NASDAQ stock markets; excludes companies subject to pending acquisitions or mutual holding company ownership. Source: S&P Global.
Source: S&P Global.
