Exhibit 99.3
St. James Federal
savings and loan association
St. James, minnesota
Conversion Valuation Appraisal Report
As of February 13, 2015
Prepared by:
McAuliffe Financial, LLC
19457 Olson Ave., Lake Oswego, OR 97034
McAuliffe Financial, LLC
February 13, 2015 |
Board of Directors
St. James Federal Savings and Loan Association
501 First Avenue, South
St. James, Minnesota 56081
Dear Board Members:
At your request, we have completed and hereby provide an independent appraisal ("Appraisal") of the estimated pro forma market value of the common stock which is to be offered in connection with the mutual-to-stock conversion transaction described below.
This Appraisal is furnished pursuant to the conversion regulations promulgated by the Office of the Comptroller of the Currency ("OCC"). This Appraisal has been prepared in accordance with the written valuation guidelines promulgated by the OCC, most recently updated as of October 21, 1994. Specifically, this Appraisal has been prepared in accordance with the "Guidelines for Appraisal Reports for the Valuation of Savings and Loan Associations Converting from Mutual to Stock Form of Organization", dated as of October 21, 1994; and applicable regulatory interpretations thereof.
Description of Reorganization
On November 5, 2014, the Boards of Directors of St. James Federal Savings & Loan Association (“St. James” or the “Association”), Wells Financial Corp. (“Wells”) and Wells Federal Bank (the “Bank”), respectively, adopted and approved a Plan of Conversion Merger (the “Plan”) and the related Agreement and Plan of Conversion Merger (the “Agreement”), subject to regulatory and Member approvals, whereby St. James proposes to convert from a federally-chartered mutual savings association to a federally-chartered stock savings association, pursuant to the rules and regulations of the Office of the Comptroller of the Currency and any successor thereto (the “OCC”). The Plan and the Agreement provide that St. James shall merge with and into the Bank concurrently with St. James’ conversion to stock form and the issuance of shares of common stock of Wells to depositors and borrowers of St. James and the community served by St. James, pursuant to the terms and conditions of the Plan and the Agreement (the “Conversion Merger”).
It is anticipated that the public shares will be offered in a Subscription offering to the St. James’ Eligible Account Holders, Tax-Qualified Employee Plans, including the employee stock ownership plan (the "ESOP"), Supplemental Eligible Account Holders and Other Members. To the extent that shares remain available for purchase after satisfaction of all subscriptions received in the Subscription offering, the shares may be offered for sale in a Community offering.
McAuliffe Financial, LLC
McAuliffe Financial, LLC. ("McAuliffe Financial") is a financial consulting firm serving the financial services industry that, among other things, specializes in financial valuations and analyses of business enterprises and securities. The background and experience of McAuliffe
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Financial is detailed in Exhibit VI-1. We believe that, except for the fee we will receive for our appraisal, we are independent of the Association and the other parties engaged by St. James to assist in the corporate reorganization and stock issuance process.
Valuation Methodology
In preparing our appraisal, we have reviewed the Association’s, Wells’ and Wells Federal Bank’s regulatory applications, including the prospectus as filed with the OCC, the Minnesota Department of Financial Institutions (“MDFI”) and the Securities and Exchange Commission ("SEC"). We have conducted a financial analysis of the Association that has included a review of its financial information for fiscal years ended September 30, 2010 through September 30, 2014, various unaudited information and internal financial reports through December 31, 2014 and due diligence related discussions with the Association’s management, Lindquist & Vennum PLLP, the Association’s counsel in connection with the reorganization, Jones Walker LLP, the counsel for Wells Financial, and Sterne Agee & Leach, Inc., the marketing advisor in connection with the common stock offering. All conclusions set forth in the Appraisal were reached independently from such discussions. In addition, where appropriate, we have considered information based on other available published sources that we believe are reliable. While we believe the information and data gathered from all these sources are reliable, we cannot guarantee the accuracy and completeness of such information.
We have investigated the competitive environment within which the Association operates and have assessed the Association's relative strengths and weaknesses. We have kept abreast of the changing regulatory and legislative environment for financial institutions and analyzed the potential impact on the Association and the industry as a whole. We have analyzed the potential effects of conversion on the Association's operating characteristics and financial performance as they relate to the pro forma market value. We have reviewed the economy in the Association's primary market area and have compared the Association's financial performance and condition with a peer group of publicly-traded thrifts as well as all publicly-traded thrifts. We have reviewed conditions in the securities markets in general and in the market for thrift stocks in particular, including the market for existing thrift issues and the market for initial public offerings by thrifts. We have excluded from such analyses thrifts subject to announced or rumored acquisition, mutual holding companies or mutual holding company institutions that have announced their intent to pursue second step conversions, and/or those institutions that exhibit other unusual characteristics.
Our Appraisal is based on the Association's representation that the information contained in the regulatory applications and additional information furnished to us by the Association, its legal counsel and other authorized agents are truthful, accurate and complete. We did not independently verify the financial statements and other information provided by the Association, its legal counsel and other authorized agents nor did we independently value the assets or liabilities of the Association. The valuation considers the Association only as a going concern and should not be considered as an indication of the Association's liquidation value.
Our appraised value is predicated on a continuation of the current operating environment for the Association and for all thrifts and their holding companies. Changes in the local, state and national economy, the legislative and regulatory environment for financial institutions, the stock
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market, interest rates, and other external forces (such as natural disasters or significant world events) may occur from time to time, often with great unpredictability, and may materially impact the value of thrift stocks as a whole or the Association's value alone. To the extent that such factors can be foreseen, they have been factored into our analysis.
Pro forma market value is defined as the price at which the Association's stock, immediately upon completion of the offering, would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.
Valuation Conclusion
It is our opinion that, as of February 13 2015, the estimated aggregate pro forma market value of the shares to be issued immediately following the offering was $2,300,000 at the midpoint . Pursuant to conversion guidelines, the 15 percent offering range indicates a minimum value of $1,955,000 and a maximum value of $2,645,000. All shares of common stock will be offered for sale at a price equal to the average of the daily arithmetic mean of the closing bid and asked quotations of Wells’ stock as traded on the OTCQB of commencing 30 trading days before the second trading day prior to the date of the final prospectus, rounded to the nearest cent, with any amount equal to or greater than $0.005 rounded to the next higher $0.01. Based on an assumed offering price of $27.00 per share offering price, this valuation range equates to total offering shares of 72,407 shares at the minimum to 97,963 shares at the maximum. In the event that the appraised value is subject to an increase, the aggregate pro forma market value may be increased up to a supermaximum value of $3,041,750 without a resolicitation. Based on the $27.00 per share offering price, the supermaximum value would result in total shares issued of 112,657.
Limiting Factors and Considerations
Our valuation is not intended, and must not be construed, as a recommendation of any kind as to the advisability of purchasing shares of the common stock. Moreover, because such valuation is necessarily based upon estimates and projections of a number of matters, all of which are subject to change from time to time, no assurance can be given that persons who purchase shares of common stock in the conversion will thereafter be able to buy or sell such shares at prices related to the foregoing valuation of the pro forma market value thereof.
McAuliffe Financial's valuation was determined based on the financial condition and operations of St. James Federal as of December 31, 2014, the date of the financial data included in the regulatory applications and prospectus.
McAuliffe Financial is not a seller of securities within the meaning of any federal and state securities laws and any report prepared by McAuliffe Financial shall not be used as an offer or solicitation with respect to the purchase or sale of any securities.
The valuation will be updated as provided for in the conversion regulations and guidelines. These updates will consider, among other things, any developments or changes in the
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Association’s financial performance and condition, management policies, and current conditions in the equity markets for thrift shares. These updates may also consider changes in other external factors which impact value including, but not limited to: various changes in the legislative and regulatory environment, the stock market and the market for thrift stocks, and interest rates. Should any such new developments or changes be material, in our opinion, to the valuation of the shares, appropriate adjustments to the estimated pro forma market value will be made. The reasons for any such adjustments will be explained in the update at the date of the release of the
update.
Respectfully submitted, | |
McAuliffe Financial, LLC | |
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J. Kevin McAuliffe | |
President |
McAuliffe Financial, LLC
Table of Contents
I. DESCRIPTION OF ST. JAMES FEDERAL SAVINGS AND LOAN ASSOCIATION | 3 |
Overview of the Association | 3 |
Balance Sheet Trends | 3 |
Lending Activities | 5 |
Asset Quality | 7 |
Funding Composition | 8 |
Interest Rate Risk Management and Asset/Liability Management | 10 |
Capital | 11 |
Profitability Trends | 11 |
Properties | 14 |
Subsidiary Activities | 14 |
Legal Proceedings | 14 |
II. MARKET AREA ANALYSIS | 15 |
Introduction | 15 |
Demographics | 16 |
Unemployment Rates | 17 |
Competition in Watonwan County | 18 |
Summary | 18 |
III. COMPARISONS WITH PUBLICLY TRADED THRIFTS | 20 |
Introduction | 20 |
Selection Process | 20 |
Review of the Comparable Group | 22 |
Asset size | 22 |
Asset Size | 22 |
Balance Sheet Mix | 23 |
Asset Quality | 23 |
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Equity to Asset Level | 23 |
Profitability | 24 |
Conclusion | 24 |
IV. MARKET VALUE ADJUSTMENTS | 26 |
Introduction | 26 |
Financial Condition | 26 |
Balance Sheet Growth | 32 |
Earnings Performance | 34 |
Market Area Review | 38 |
Cash Dividends | 38 |
Liquidity of the Issue | 56 |
Management | 57 |
Marketing of the Issue | 58 |
Summary of Valuation Adjustments | 62 |
V. MARKET VALUE DETERMINATION | 63 |
Introduction | 63 |
Discussion of Pricing Ratios | 63 |
Price to Earnings Ratio | 63 |
Price to Book Value/Price to Tangible Book Value Ratio | 63 |
Price to Assets Ratio | 64 |
Pro Forma Value | 64 |
Valuation Conclusion | 66 |
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I. | DESCRIPTION OF ST. JAMES FEDERAL SAVINGS AND LOAN ASSOCIATION |
Overview of the Association
St. James Federal Savings and Loan Association (“St. James Federal” or the “Association”) was originally chartered on September 15, 1958 in St. James, Minnesota. St. James Federal operates through a single office in St. James which is located in a rural community approximately 100 miles southwest of Minneapolis and approximately 100 miles east of Sioux Falls, South Dakota. At December 31, 2014, the Association’s total assets equaled $27.2 million. The Association’s primary market area of Watonwan County is largely rural and supported by the agricultural industry and with no major population centers.
St. James Federal’s lending efforts have reflected a diversified portfolio focused on agricultural, one-to-four family, commercial and industrial and consumer loans. At December 31, 2014, 39.9% of the Association’s total loan portfolio was comprised of farm and agricultural loans and 31.8% were permanent one-to-four family residential mortgage loans. Management believes that St. James Federal has maintained a very positive image in Watonwan County for its lending and depository services. The primary liability funding source for St. James Federal is retail deposits raised through the Association’s single office.
Balance Sheet Trends
Table 1.1 presents key balance sheet data for St. James Federal for the five fiscal years ended September 30, 2010 through September 30, 2014 and at December 31, 2014. Over this period, St. James Federal’s asset base has remained relatively flat fluctuating between $24.4 million at September 30, 2010 to $27.5 million at September 30, 2012. At December 31, 2014, the Association’s asset base has declined to $27.2 million. The current assets are near the peak reached in fiscal 2012.
Loans, net of the allowance for loan losses, comprise the largest component of assets, equaling $18.7 million (68.8% of assets) as of December 31, 2014. Between September 30, 2010 and December 31, 2014, the Association’s loan portfolio remained relatively flat and fluctuated between a high of $18.7 million at September 30, 2014 and a low of $18.0 million at September 30, 2011. The largest single component of the loan portfolio has consisted of permanent one-to-four family mortgage loans, which has exceeded over 32% of total loans during recent years followed by agricultural loans (22%) and farm loans (18%).
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Table 1.1
St James Federal Savings and Loan Association
Selected Balance Sheet Items
(Dollars in Thousands)
At September 30, | At December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2010 | % Assets | 2011 | % Assets | 2012 | % Assets | 2013 | % Assets | 2014 | % Assets | 2014 | % Assets | |||||||||||||||||||||||||||||||||||||
Total Assets | $ | 24,367 | 100.00 | % | $ | 25,582 | 100.00 | % | $ | 27,523 | 100.00 | % | $ | 26,993 | 100.00 | % | $ | 26,589 | 100.00 | % | $ | 27,215 | 100.00 | % | ||||||||||||||||||||||||
Cash and Cash Equivalents | 4,246 | 17.43 | % | 5,589 | 21.85 | % | 7,125 | 25.89 | % | 7,479 | 27.71 | % | 6,758 | 25.42 | % | 6,776 | 24.90 | % | ||||||||||||||||||||||||||||||
Investment Securities | 833 | 3.42 | % | 1,344 | 5.25 | % | 1,246 | 4.53 | % | 914 | 3.39 | % | 1,231 | 4.63 | % | 1,198 | 4.40 | % | ||||||||||||||||||||||||||||||
FHLB Stock | 80 | 0.33 | % | 80 | 0.31 | % | 77 | 0.28 | % | 35 | 0.13 | % | 32 | 0.12 | % | 32 | 0.12 | % | ||||||||||||||||||||||||||||||
Total Cash & Investments | 5,159 | 21.17 | % | 7,013 | 27.41 | % | 8,447 | 30.69 | % | 8,428 | 31.22 | % | 8,021 | 30.17 | % | 8,006 | 29.42 | % | ||||||||||||||||||||||||||||||
Loans Receivable, net | 18,687 | 76.69 | % | 17,997 | 70.35 | % | 18,557 | 67.42 | % | 18,023 | 66.77 | % | 18,030 | 67.81 | % | 18,734 | 68.84 | % | ||||||||||||||||||||||||||||||
Real Estate Owned | 42 | 0.17 | % | - | 0.00 | % | - | 0.00 | % | 50 | 0.19 | % | 32 | 0.12 | % | - | 0.00 | % | ||||||||||||||||||||||||||||||
Other Assets | 479 | 1.97 | % | 572 | 2.24 | % | 520 | 1.89 | % | 491 | 1.82 | % | 506 | 1.90 | % | 475 | 1.75 | % | ||||||||||||||||||||||||||||||
Deposits(incl Escrows) | 21,831 | 89.59 | % | 23,138 | 90.45 | % | 23,979 | 87.12 | % | 24,327 | 90.12 | % | 23,846 | 89.68 | % | 24,439 | 89.80 | % | ||||||||||||||||||||||||||||||
Borrowings | 165 | 0.68 | % | - | 0.00 | % | 1,000 | 3.63 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | ||||||||||||||||||||||||||||||
Other Liabilities | 126 | 0.52 | % | 77 | 0.30 | % | 28 | 0.10 | % | 25 | 0.09 | % | 29 | 0.11 | % | 21 | 0.08 | % | ||||||||||||||||||||||||||||||
Total Liabilities | 22,122 | 90.79 | % | 23,215 | 90.75 | % | 25,006 | 90.85 | % | 24,352 | 90.22 | % | 23,875 | 89.79 | % | 24,460 | 89.88 | % | ||||||||||||||||||||||||||||||
Equity | 2,245 | 9.21 | % | 2,367 | 9.25 | % | 2,517 | 9.15 | % | 2,641 | 9.78 | % | 2,714 | 10.21 | % | 2,755 | 10.12 | % | ||||||||||||||||||||||||||||||
Tangible Equity / Tg. Assets | 9.21 | % | 9.25 | % | 9.15 | % | 9.78 | % | 10.21 | % | 10.12 | % | ||||||||||||||||||||||||||||||||||||
Loans / Deposits | 85.60 | % | 77.78 | % | 77.39 | % | 74.09 | % | 75.61 | % | 76.66 | % |
Source: St James Federal’s internal financial statements and call reports.
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The Association has maintained a high level of cash and investments in recent years in an effort to help manage its interest rate sensitivity and also due to limited quality lending opportunities. Cash, cash equivalents and investment securities have ranged from 21.2% of total assets at September 30, 2010 to 31.2% at September 30, 2013. At December 31, 2014, cash and investments remained high at 29.4%.
The asset base is funded with retail deposits and capital. St. James Federal has rarely relied on FHLB borrowings to fund loan demand or meet asset/liability goals. Only in fiscal 2012 has the Association utilized FHLB borrowings which were repaid in fiscal 2013. All of the Association’s deposits are local deposits. The deposit balance increased from $21.8 million at September 30, 2010 to $24.4 million at December 31, 2014. Overall, between September 30, 2010 and December 31, 2014, the Association’s GAAP equity increased from $2.24 million or 9.21% of assets to $2.76 million or 10.12% of assets. The Association is a “well capitalized” institution pursuant to regulatory standards.
Lending Activities
As presented in Table 1.2, St. James Federal’s lending activities have emphasized the origination of permanent one-to-four family residential mortgage, farm, agricultural and commercial and industrial loans. Between September 30, 2010 and December 31, 2014, these types of loans constituted between 71% and 80% of the Association’s total loan portfolio. The Association plans to continue to offer permanent one-to-four family residential mortgage loans, farming and agricultural, and commercial and industrial loans while also originating smaller volumes of home equity and consumer loans. Generally, the Association does not originate construction or multifamily loans. The majority of St. James Federal’s one-to-four family residential mortgage loans are held in portfolio.
At December 31, 2014, the Association’s permanent first mortgage loans secured by one-to-four family residential properties totaled $6.1 million, or 31.8% of total loans. Generally, the Association’s one-to-four family loans are 5 year balloon loans with 15 to 30 year amortizations. After the initial 5 year term, the loans are re-priced at new market rates and again maintain the 5 year balloon feature. All one-to-four family loans are originated with a maximum loan to value ratio of 80%. For borrowers whose loans qualify for secondary market standards, the Association acts as a broker sending the loan to other financial institutions for a fee.
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Table 1.2
St James Federal Savings and Loan Association
Loan Portfolio
At September 30, | At December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2014 | |||||||||||||||||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||||||||||
One- to four-family | $ | 8,601 | 45.98 | % | $ | 7,545 | 41.30 | % | $ | 6,772 | 35.92 | % | $ | 6,649 | 36.19 | % | $ | 6,162 | 33.53 | % | $ | 6,068 | 31.82 | % | ||||||||||||||||||||||||
Farm loans | NA | NA | NA | NA | 2,974 | 15.77 | % | 3,809 | 20.73 | % | 3,705 | 20.16 | % | 3,448 | 18.08 | % | ||||||||||||||||||||||||||||||||
Home equity/second | 959 | 5.13 | % | 839 | 4.59 | % | 890 | 4.72 | % | 731 | 3.98 | % | 613 | 3.34 | % | �� | 643 | 3.37 | % | |||||||||||||||||||||||||||||
Non-residential | NA | NA | NA | NA | 1,487 | 7.89 | % | 1,421 | 7.73 | % | 1,818 | 9.89 | % | 1,851 | 9.71 | % | ||||||||||||||||||||||||||||||||
Construction and land | 0 | 0.00 | % | 0 | 0.00 | % | 0 | 0.00 | % | 0 | 0.00 | % | 125 | 0.68 | % | 216 | 1.13 | % | ||||||||||||||||||||||||||||||
Total real estate loans | 12,659 | 67.68 | % | 12,311 | 67.39 | % | 12,123 | 64.30 | % | 12,610 | 68.64 | % | 12,423 | 67.61 | % | 12,226 | 64.12 | % | ||||||||||||||||||||||||||||||
Agricultural loans | NA | NA | NA | NA | 3,123 | 16.56 | % | 2,696 | 14.67 | % | 3,201 | 17.42 | % | 4,166 | 21.85 | % | ||||||||||||||||||||||||||||||||
Commercial and Industrial | 4,779 | 25.55 | % | 4,360 | 23.87 | % | 1,922 | 10.19 | % | 1,449 | 7.89 | % | 1,329 | 7.23 | % | 1,378 | 7.23 | % | ||||||||||||||||||||||||||||||
Consumer and other loans | 1,266 | 6.77 | % | 1,597 | 8.74 | % | 1,686 | 8.94 | % | 1,617 | 8.80 | % | 1,422 | 7.74 | % | 1,298 | 6.81 | % | ||||||||||||||||||||||||||||||
Total loans | $ | 18,704 | 100.00 | % | $ | 18,268 | 100.00 | % | $ | 18,854 | 100.00 | % | $ | 18,372 | 100.00 | % | $ | 18,375 | 100.00 | % | $ | 19,068 | 100.00 | % | ||||||||||||||||||||||||
Allowance for losses | (196 | ) | (271 | ) | (296 | ) | (349 | ) | (345 | ) | (334 | ) | ||||||||||||||||||||||||||||||||||||
Loans, net | $ | 18,508 | $ | 17,997 | $ | 18,558 | $ | 18,023 | $ | 18,030 | $ | 18,734 |
Source: St. James Federal call reports
At December 31, 2014, the Association had $3.4 million in farm loans, representing 18.1% of total loan portfolio. Farm loans are generally fixed rate with 5 year balloon terms. The loans are amortized over a 15 to 30 year term while loan to value ratios generally do not exceed 80%. All of the farm loans are secured by property within or contiguous to the Association’s primary market area.
Home equity and second mortgages represent a small portion of the Association’s loan portfolio. At December 31, 2014, the Association had home equity and second mortgages totaling $643,000, or 3.4% of the total loan portfolio. These loans are generally adjustable rate loans based on the prime rate. The Association structures these loans so payments reflect both principal and interest with loan to value ratios ranging between 80% and 90%.
Nonresidential loan totaled $1.9 million at December 31, 2014, or 9.7% of the total loan portfolio. Generally, these loans consist of commercial buildings, though there is one small church loan. The Association provides borrowers with fixed rate loans secured by the underlying real estate. The Association lends up to 80% of the appraised value with the loans amortizing over a 15 to 30 year term.
St. James Federal rarely makes construction loans. At December 31, 2014, the Association had one construction loan for $213,000.
Agricultural loans totaled $4.2 million at December 31, 2014, or 21.9% of the total loan portfolio. Agricultural loans relate to farming operations and are generally short term of one
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year or less and are normally made over a crop season. Agricultural loans generally require a debt service ratio of 1.10x to 1.15x or have a loan to value ratio of 70%. The Association requires all agricultural borrowers to have crop insurance.
Commercial and industrial loans total $1.4 million at December 31, 2014, or 7.2% of total loans. Commercial loans include loans to local businesses for floor plans and equipment loans. The Association makes commercial loans on a fixed rate basis that include a balloon feature in 5 years. The loans are made to amortize up to 10 years.
Consumer loans include auto loans and personal loans to residents of the Association’s market area. At December 31, 2014, consumer and other loans totaled $1.3 million, or 6.8% of total loans. Generally, consumer loans are made for terms of 3 to 5 years.
St. James Federal does not engage in mortgage banking related activities. Presently, all loans originated by St. James Federal are retained in portfolio. Though not often, the Association has participated in loans with other financial institutions.
Asset Quality
St. James Federal has experienced only moderate levels of non-performing assets over the past 5 years as the agricultural community did not get impacted by declining real estate values experienced in other parts of the U.S. during the most recent economic downturn. As shown in Table 1.3, St. James Federal’s level of non- performing assets (non-accrual loans,
Table 1.3
St. James Federal Savings and Loan Association
Non-Performing Assets
At September 30, | At Dec. 31, | |||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2014 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Non-accrual loans: | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
One- to four-family | $ | 67 | $ | 61 | $ | 152 | $ | 218 | $ | 109 | $ | 129 | ||||||||||||
Multi-family | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Home equity | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Non-residential | 103 | 94 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Construction and land | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total real estate loans | $ | 170 | $ | 155 | $ | 152 | $ | 218 | $ | 109 | $ | 129 | ||||||||||||
Consumer and other loans | 15 | 1 | 0 | 0 | 12 | 13 | ||||||||||||||||||
Total nonaccrual loans | $ | 185 | $ | 156 | $ | 152 | $ | 218 | $ | 121 | $ | 142 | ||||||||||||
Real estate owned: | 12 | 0 | 0 | 50 | 50 | 50 | ||||||||||||||||||
Total nonperforming assets | $ | 197 | $ | 156 | $ | 152 | $ | 268 | $ | 171 | $ | 192 | ||||||||||||
Total nonperforming loans to total loans | 0.99 | % | 0.87 | % | 0.82 | % | 1.21 | % | 0.67 | % | 0.76 | % | ||||||||||||
Total nonperforming assets to total assets | 0.81 | % | 0.61 | % | 0.55 | % | 0.99 | % | 0.64 | % | 0.71 | % |
Source: St James Federal call reports.
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accruing loans past due 90 days or more and real estate owned (“REO”)), remained relatively stable between September 30, 2010 and December 31, 2014. Generally, the nonperforming asset ratio (“NPA”) relative to total assets remained below 1.00% over the past 5 years. At December 31, 2014, NPAs were 0.71% of assets. Also, as of December 31, 2013 and December 31, 2014, the Association’s had classified assets as follows:
At December 31, 2013 | At December 31, 2014 | |||||||
(Dollars in Thousands) | ||||||||
Special Mention | $ | 573 | $ | 405 | ||||
Substandard | 368 | 238 | ||||||
Total Classified Assets | 941 | 643 |
Source: St. James Federal’s internal reports
As shown in Table 1.4, St. James Federal’s allowance for loan loss level has increased over the past several years. Between September 30, 2010 and December 31, the allowance for loan losses increased from $196,000 (1.04% of total outstanding loans) to $334,000 (1.75% of total outstanding loans). As a percentage of non-performing loans, the allowance has exceeded the level of nonperforming loans in each year and represented 235% at December 31, 2014.
Table 1.4
St. James Federal Savings and Loan Association
Allowance for Loan Losses
At September 30, | At Dec. 31, | |||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2014 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Allowance at Beginning of Period | 137 | 196 | 271 | 296 | 349 | 345 | ||||||||||||||||||
Provision for loan losses | 83 | 68 | 45 | 60 | 33 | 0 | ||||||||||||||||||
Charge Offs | 24 | 0 | 24 | 7 | 36 | 11 | ||||||||||||||||||
Recoveries | 0 | (7 | ) | (4 | ) | 0 | 0 | 0 | ||||||||||||||||
Allowance at End of Period | 196 | 271 | 296 | 349 | 345 | 334 | ||||||||||||||||||
Allowance to nonperforming loans | 105.95 | % | 173.72 | % | 194.74 | % | 160.09 | % | 285.12 | % | 235.21 | % | ||||||||||||
Allowance to total loans | 1.04 | % | 1.48 | % | 1.60 | % | 1.90 | % | 1.88 | % | 1.75 | % | ||||||||||||
Net Charge Offs to average loans | 0.13 | % | -0.04 | % | 0.11 | % | 0.04 | % | 0.20 | % | 0.06 | % |
Source: St. James Federal call reports
Funding Composition
Deposits are the major source of funds for lending and other investment purposes. In addition to deposits, the Association’s other significant sources of funds include liquidity (cash
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and short-term interest-earning deposits), repayment of loans, maturing investments and earnings from operations. Based on the Association’s growth objectives, these sources should continue to adequately address funding demands.
Retail deposits are raised through St. James Federal’s single retail office. The Association does not solicit brokered deposits. As shown in Table 1.5, NOW and demand deposits constitute the largest portion of the Association’s deposit base, remaining constant near 43% to 44% of total deposits. Certificates of deposit, (“CDs”) represented over 40% at December 31, 2014 while regular savings and other deposits comprised the remainder of the deposit portfolio with 15% of total deposits. NOW and demand deposits totaled 44.6% at December 31, 2014. The Association does not offer money market deposit accounts (“MMDA’s”).
Table 1.5
St James Federal Savings and Loan Association
Deposit Portfolio
At September 30, | At December 31, | |||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | 2014 | |||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
NOW and demand deposits | $ | 10,385 | 43.31 | % | $ | 10,459 | 43.00 | % | $ | 10,410 | 43.66 | % | $ | 10,899 | 44.60 | % | ||||||||||||||||
Regular savings and other deposits | 3,240 | 13.51 | % | 4,013 | 16.50 | % | 4,093 | 17.16 | % | 3,709 | 15.18 | % | ||||||||||||||||||||
Certificates of deposit – IRA | 1,951 | 8.14 | % | 1,915 | 7.87 | % | 2,269 | 9.52 | % | 2,207 | 9.03 | % | ||||||||||||||||||||
Certificates of deposit - other | 8,402 | 35.04 | % | 7,939 | 32.64 | % | 7,074 | 29.67 | % | 7,624 | 31.20 | % | ||||||||||||||||||||
Total | $ | 23,978 | 100.00 | % | $ | 24,326 | 100.00 | % | $ | 23,846 | 100.00 | % | $ | 24,439 | 100.00 | % |
Source: St James Federal’s call report.
Although deposits are the primary source of funds, the Association may utilize borrowings when it is a less costly source of funds and can be invested at a positive interest rate spread. Borrowings are utilized when additional liquidity is required to fund loan demand or when it meets asset/liability management goals. Borrowings have historically consisted of advances from the FHLB. The Association’s borrowing capacity is approximately $4.0 million with the FHLB. At December 31, 2014, the Association did not have any FHLB advances outstanding and had not utilized such borrowings since fiscal 2012, as deposits have been a reliable funding source. Based on anticipated loan volume and liquid asset levels during the next three years, the Association anticipates zero or minimal FHLB borrowings over the foreseeable future.
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Interest Rate Risk Management and Asset/Liability Management
St. James Federal’s primary objectives of asset/liability management include maximizing earnings and return on capital within acceptable and controllable levels of the following main risks:
· | Interest Rate Risk |
· | Valuation Risk |
· | Liquidity Risk |
· | Credit Risk |
· | Capital Risk |
· | Operations Risk |
· | Yield Curve or Mismatch Risk |
· | Basis Risk |
· | Embedded Options Risk |
· | Event Risk |
Additional objectives include providing for growth that is sound, profitable and balanced without sacrificing the quality of service and managing and maintaining policy and procedures that are consistent with the short and long-term strategic goals of the Board of Directors.
St. James Federal relies on an independent interest rate risk report prepared by UBB Securities. Table 1.6 provides a summary of the impact of interest rate shocks on the Association’s net interest income, net interest margin, market value change in the loan and securities portfolios and the impact on net economic value at December 31, 2014. As noted, the Association is asset rate sensitive and will generally increase economic value in a rising rate environment. The amounts of changes in the various categories are all within tolerance levels established by the Board of Directors.
Table 1.6
St. James Federal Savings and Loan Association
Interest Rate Sensitivity
At December 31, 2014
Net | Market | Market | Economic | |||||||||||||||||
Interest | Net | Value | Value | Value of | ||||||||||||||||
Income | Interest | Change | Change | Equity at | ||||||||||||||||
Change | Margin | of Loans | of Sec. | Risk | ||||||||||||||||
Rising 400 basis points | (7.93 | ) | 3.56 | (3.74 | ) | (11.22 | ) | 17.60 | ||||||||||||
Rising 300 basis points | (5.86 | ) | 3.64 | (3.15 | ) | (8.26 | ) | 10.92 | ||||||||||||
Rising 200 basis points | (3.84 | ) | 3.72 | (2.06 | ) | (5.26 | ) | 7.68 | ||||||||||||
Falling 200 basis points | (6.36 | ) | 3.62 | 2.15 | 2.59 | (8.17 | ) |
Source: ALMEdge Analyzing Sensitivity to Market Risk December 31, 2014. UBB Securities.
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Capital
St. James Federal exceeded all regulatory capital requirements at December 31, 2014. The Association qualifies as “well capitalized” on such date. Table 1.7 presents St. James Federal’s capital position at December 31, 2014.
Table 1.7
St. James Federal Savings and Loan Association
Capital Position at December 31, 2014
Percent of | ||||||||
Amount | Assets | |||||||
GAAP Capital | 2,755 | 10.12 | % | |||||
Tier 1 Leverage Ratio | 2,755 | 10.12 | % | |||||
Requirement | 1,089 | 4.00 | % | |||||
Excess | 1,666 | 6.12 | % | |||||
Tier 1 Capital Ratio | 2,755 | 15.17 | % | |||||
Requirement | 1,090 | 6.00 | % | |||||
Excess | 1,665 | 9.17 | % | |||||
Total Capital Ratio | 2,983 | 16.43 | % | |||||
Requirement | 1,453 | 8.00 | % | |||||
Excess | 1,530 | 8.43 | % | |||||
Source: St James Federal’s call reports. |
Profitability Trends
Table 1.8 presents income and expense trends for St. James Federal for the fiscal years ended September 30, 2010 through September 30, 2014 and for the twelve months ended December 31, 2014. Net income reflected a declining trend between the fiscal years ended September 30, 2012 and September 30, 2014, with net income declining from $150,000, and a return on assets (“ROA”) of 56 basis points, in fiscal 2012 to $73,000, and an ROA of 27 basis points, in fiscal 2014. For the twelve months ended December 31, 2014, net income increased to $96,000, or 36 basis points. The decline in profitability during this time period reflected a reduction in the Association’s net interest margins as well as a modest increase in operating expense levels relative to the asset base. Additionally, in fiscal 2014 and for the most recent twelve month period, the Association’s earnings were negatively impacted by a loss on the sale of real estate.
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Since fiscal 2010, the Association’s net interest margin has ranged from 3.47% in fiscal 2013 to 4.01% in fiscal 2011. The Association’s narrowing net interest margins largely reflects a higher level of lower yielding cash and investments. Over the past year, however, the Association’s net interest margin expanded slightly to 3.64%.
The Association’s net interest income level was partially offset by loan loss provision levels ranging from $83,000 in fiscal 2010 to $32,000 in fiscal 2014. The limited volatility in loan loss provisions reflects minimal charge off activity as well as a relatively low level on non-performing assets.
Non-interest income has been a small source of revenue for the Association and consists primarily of deposit related fees and service charges. In the past year, the Association did experience a loss on the sale of real estate owned properties. The Association had foreclosed on the properties in fiscal 2013 and adjusted the book value. However, the Association was not able to get an updated appraisal due to Minnesota law that prevents the Association or any of its service providers to enter the property for a six month period. Once the Association was able to review the condition of the properties, it was determined further write-downs were necessary and the property was ultimately sold.
Primarily reflecting their small operations, St James Federal has maintained a moderately high operating expense ratio. However, the operating expense ratio reflected some moderate volatility due to a fluctuating asset base rather than the absolute level of expenses increasing. The Associations operating expense ratio was below 3.00% in fiscal 2012 and 2013 as the average asset base increased. Since fiscal 2010, the Associations general and administrative expenses ranged from $754,000 to $838,000. For the most recent twelve month period, the Association’s operating expenses relative to average assets was 3.10%.
Table 1.9 provides McAuliffe Financial’s calculation of St James Federal’s core net income for the latest fiscal year ended September 30, 2014.
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Table 1.8
St James Federal Savings and Loan Association
Income and Expense Trends
(Dollars in Thousands)
For the Fiscal Year Ended September 30, | For the 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||
($000) | (%) | ($000) | (%) | ($000) | (%) | ($000) | (%) | ($000) | (%) | ($000) | (%) | |||||||||||||||||||||||||||||||||||||
Average Assets | $ | 25,961 | 100.00 | % | $ | 24,975 | 100.00 | % | 26,553 | $ | 100.00 | % | $ | 27,258 | 100.00 | % | $ | 26,791 | 100.00 | % | $ | 27,013 | 100.00 | % | ||||||||||||||||||||||||
Average Equity | 2,194 | 8.45 | % | 2,306 | 9.23 | % | 2,442 | 9.20 | % | 2,579 | 9.46 | % | 2,677 | 9.99 | % | 2,707 | 10.02 | % | ||||||||||||||||||||||||||||||
Interest Income | 1,359 | 5.23 | % | 1,311 | 5.25 | % | 1,236 | 4.66 | % | 1,169 | 4.29 | % | 1,119 | 4.18 | % | 1,121 | 4.15 | % | ||||||||||||||||||||||||||||||
Interest Expense | (400 | ) | -1.54 | % | (310 | ) | -1.24 | % | (262 | ) | -0.99 | % | (222 | ) | -0.82 | % | (150 | ) | -0.56 | % | (138 | ) | -0.51 | % | ||||||||||||||||||||||||
Net Interest Income | 959 | 3.69 | % | 1,001 | 4.01 | % | 974 | 3.67 | % | 946 | 3.47 | % | 969 | 3.62 | % | 983 | 3.64 | % | ||||||||||||||||||||||||||||||
Loan Loss Provision | (83 | ) | -0.32 | % | (68 | ) | -0.27 | % | (45 | ) | -0.17 | % | (60 | ) | -0.22 | % | (32 | ) | -0.12 | % | (17 | ) | -0.06 | % | ||||||||||||||||||||||||
Net Interest Inc. after Prov. | 876 | 3.37 | % | 933 | 3.74 | % | 929 | 3.50 | % | 886 | 3.25 | % | 937 | 3.50 | % | 966 | 3.58 | % | ||||||||||||||||||||||||||||||
Noninterest income | 61 | 0.23 | % | 65 | 0.26 | % | 64 | 0.24 | % | 63 | 0.23 | % | 67 | 0.25 | % | 61 | 0.23 | % | ||||||||||||||||||||||||||||||
Gain<Loss> on sale of assets | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | (65 | ) | -0.24 | % | (53 | ) | -0.20 | % | ||||||||||||||||||||||||||||
General & Admin. Expense | (786 | ) | -3.03 | % | (804 | ) | -3.22 | % | (754 | ) | -2.84 | % | (772 | ) | -2.83 | % | (833 | ) | -3.11 | % | (838 | ) | -3.10 | % | ||||||||||||||||||||||||
Income Before Income Taxes | 151 | 0.58 | % | 194 | 0.78 | % | 240 | 0.90 | % | 178 | 0.65 | % | 106 | 0.40 | % | 136 | 0.50 | % | ||||||||||||||||||||||||||||||
Income Tax Provision | (50 | ) | -0.19 | % | (72 | ) | -0.29 | % | (90 | ) | -0.34 | % | (54 | ) | -0.20 | % | (33 | ) | -0.12 | % | (40 | ) | -0.15 | % | ||||||||||||||||||||||||
Net Income | 101 | 0.39 | % | 122 | 0.49 | % | 150 | 0.56 | % | 124 | 0.46 | % | 73 | 0.27 | % | 96 | 0.36 | % | ||||||||||||||||||||||||||||||
Return on Equity | 4.60 | % | 5.30 | % | 6.14 | % | 4.82 | % | 2.74 | % | 3.55 | % |
Source: St James Federal's internal financial statements and call reports.
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Table 1.9
St James Federal Savings and Loan Association
Core Net Income Calculation
($000)
For the Twelve | ||||
Ended December 31, 2014 | ||||
Net Income as Reported | $ | 96 | ||
Pre-Tax Adjustments: | ||||
Plus: Loss on Sale of Real Estate | 53 | |||
Income Tax Impact (34%) | (18 | ) | ||
After-Tax Adjustment | 35 | |||
Core Net Income | $ | 131 | ||
Core ROA | 0.49 | % | ||
Core ROE | 4.84 | % |
Source: McAuliffe Financial calculation.
Properties
As of December 31, 2014, the net book value of St. James Federal’s properties was $185,000. The Association owned its single office facility and does not lease any property.
Subsidiary Activities
St. James Federal does not have any subsidiaries.
Legal Proceedings
St. James Federal is not involved in any pending legal proceedings as a defendant other than routine legal proceedings occurring in the ordinary course of business. The Association has indicated that it is not involved in any legal proceedings, the outcome of which would be material to its financial condition or results of operations.
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II. | MARKET AREA ANALYSIS |
Introduction
St. James Federal operates out of a single office in the south-central portion of Minnesota in the City of St. James which is the county seat of Watonwan County. St. James is located approximately 100 southwest of Minneapolis. The Association’s primary market area for its lending and deposit gathering base consists of the communities within and contiguous to Watonwan County. Watonwan County is largely agricultural with the community of St James largely supporting the farming needs of the surrounding area. Additionally, the surrounding counties are also largely agricultural comprised of small communities supporting the needs of farmers.
The largest employers in Watonwan County are listed in table 2.1. Though a couple of the largest employers are related to the government and education, a considerable number of the employers support the farming communities. The largest employer, Amour Eckrich, is an animal slaughtering and processing facility and is the facility many farmers in the surround area use to sell their livestock.
Table 2.1
St James Federal Savings & Loan Association
Major Employers in Watonwan County
Company | Employees | Product/Service | ||
Watonwan County | ||||
Amour Eckrich | 275 | Animal Slaughtering & Processing | ||
St James Public Schools | 235 | Elementary and Secondary Schools | ||
Watonwan County | 165 | Government | ||
Good Samaritan Society | 160 | Nursing Care Facilities | ||
S-T Industries | 70 | Mach Shops; Screw, Nut & Bolt Mfg. | ||
Tony Downs Foods Co. | 55 | Fruit & Vegetable Preserving | ||
City of St James | 36 | Government | ||
United Parcel Service | 35 | Couriers | ||
Watonwan Farm Services | 35 | Nondurable Goods Merchant Wholesaler | ||
Wilcon Construction | 34 | New Multifamily Housing Construction | ||
GM Runge, Inc. | 20 | General Freight Trucking | ||
Industrial Construction Services | 20 | Industrial Building Construction | ||
St James Publishing Company | 19 | Newspaper, Periodical, Book Publishers |
Source: | LakesnWoods.com. |
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Demographics
The population in Watonwan County was approximately 11,200 in 2010 and has remained flat through the most current period. The very small county is mostly rural and is comprised of large farming acreage. With farming the primary economic base, the county demographic base remains generally un-influenced by urban employment centers.
Table 2.2 presents economic and demographic data from 2010 through 2014 and forecast data through 2019. From 2010 to 2014, Watonwan County’s population contracted 0.02 percent
Table 2.2
Economic and Demographic Data for the U.S, the State
of Minnesota and the Primary Market Area of
St James Federal Savings & Loan Association
Percent | Percent | |||||||||||||||||||
Change | Change | |||||||||||||||||||
Population (000) | 2010 | 2014 | 2019 Proj | 2010-2014 | 2014-2019 Proj | |||||||||||||||
United States | 308,745,538 | 317,199,353 | 328,309,464 | 2.74 | 3.50 | |||||||||||||||
Minnesota | 5,303,925 | 5,424,948 | 5,582,534 | 2.28 | 2.90 | |||||||||||||||
Watonwan, MN | 11,211 | 11,209 | 11,289 | -0.02 | 0.71 |
Percent | Percent | |||||||||||||||||||
Change | Change | |||||||||||||||||||
Households | 2010 | 2014 | 2019 Proj | 2010-2014 | 2014-2019 Proj | |||||||||||||||
United States | 116,716,292 | 120,163,305 | 124,622,756 | 2.95 | 3.71 | |||||||||||||||
Minnesota | 2,087,227 | 2,147,610 | 2,219,923 | 2.89 | 3.37 | |||||||||||||||
Watonwan, MN | 4,520 | 4,558 | 4,625 | 0.84 | 1.47 |
Percent | Percent | |||||||||||||||||||
Change | Change | |||||||||||||||||||
Median Household Income ($) | 2011 | 2014 | 2019 Proj | 2011-2014 | 2014-2019 Proj | |||||||||||||||
United States | 49,726 | 51,579 | 53,943 | 3.73 | 4.58 | |||||||||||||||
Minnesota | 56,076 | 59,127 | 62,361 | 5.44 | 5.47 | |||||||||||||||
Watonwan, MN | 43,435 | 52,945 | 58,486 | 21.89 | 10.47 |
Percent | Percent | |||||||||||||||||||
Change | Change | |||||||||||||||||||
Per Capita Income ($) | 2011 | 2014 | 2019 Proj | 2011-2014 | 2014-2019 Proj | |||||||||||||||
United States | 26,109 | 27,721 | 29,220 | 6.17 | 5.41 | |||||||||||||||
Minnesota | 28,460 | 30,539 | 32,567 | 7.30 | 6.64 | |||||||||||||||
Watonwan, MN | 20,316 | 26,621 | 29,930 | 31.03 | 12.43 |
Demographic data is provided by ESRI based primarily on US Census data. For non-census year data, ESRI uses samples and projections to estimate the demographic data.
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compared to the national average growth of 2.74 percent throughout the U.S. and 2.28 percent for the State of Minnesota. Similarly, the population through 2019 is expected to remain flat in Watonwan County while national and state levels are expected to expand 3.50 percent and 2.90 percent, respectively.
Household growth followed a similar pattern as population growth with the number of households relatively flat in Watonwan County and projected to grow 1.47 percent through 2019. Minnesota household growth was higher at 2.89 percent and 3.37 percent for the past four years and projected five year periods, respectively. The slower growth largely reflects the rural environment of Watonwan County and its relatively non-diversified economic base with limited industrial growth.
Median household income growth for Watonwan County has substantially surpassed state and national averages as farming revenue has increased considerably over the past several years and projections indicate this trend will continue. Median household income in Watonwan County was $58,486 and increased 21.89 percent from 2011 to 2014 compared to state and national average increases of 5.44 percent and 3.73 percent, respectively. Relative to the State of Minnesota, the median household income in Watonwan County was 89.5 percent and by 2019 it is expected to be 93.8 percent.
The per capital income level in Watonwan County follow a similar pattern as the median household income.
Unemployment Rates
Unemployment rates in Watonwan County have historically been near State rates and below National rates. The agricultural economy has resulted in stable employment rates for residents of Watonwan County, though the county unemployment rates are affected by seasonal fluctuations.
Table 2.3
St. James Federal Savings & Loan Association
Unemployment Trends
December 2013 | December 2014 | |||||||
Region | Unemployment | Unemployment | ||||||
United States | 6.7 | % | 5.6 | % | ||||
Minnesota | 4.7 | 3.7 | ||||||
Watonwan County (1) | 5.1 | 4.7 |
(1) Unemployment rates are not seasonally adjusted.
Source: U.S. Bureau of Labor Statistics.
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Competition in Watonwan County
As a savings institution that primarily focuses on real estate lending and the gathering of deposits in southwestern Minnesota, St. James Federal’ primary competitors have been (1) other financial institutions with offices in the local market (including commercial banks, thrifts and credit unions); (2) other mortgage loan originators and mortgage brokers (however, these potential competitors have not been much of a factor during the last three years); (3) those depository and lending organizations not physically located within the market but capable of doing business remotely through the Internet or by other means; and (4) other competitors such as investment firms, mutual funds, insurance companies, etc.
Competition among financial institutions in the Association’s market for the origination of loans and the attraction of deposits has been significant. However, St. James Federal has been able to maintain a stable base of loyal customers and depositors from its local community. As larger institutions compete for market share to achieve economies of scale, the environment for the Association’s products and services is expected to remain highly competitive. Community-sized institutions such as St. James Federal typically compete with larger institutions on pricing or operate in a niche that will allow for operating margins to be maintained at profitable levels.
St. James Federal competes with six other commercial banks for deposits in Watonwan County, including the branch offices of large in-state regional banks and out-of-state superregional banks. Table 2.4 displays deposit market share for all FDIC-insured banks and thrifts in Watonwan County. St. James Federal maintains a small market share in Watonwan County, where it ranks sixth out of seven with a total deposit market share of approximately 7%. One other community bank holds an approximately 51% market share.
Summary
The overall condition of St James Federal’s primary market area is stable, but with limited economic growth. The employment base in Watonwan County has been largely supported by the agricultural community. The largest employers in the County have remained consistent employers over the past 5 years with limited layoffs and Watonwan County did not experience the real estate asset bubble experienced in other parts of the country. St James Federal’s future organic growth is expected to be primarily oriented toward the offering of deposit and lending products in and around Watonwan County.
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Table 2.4
St. James Federal Savings and Loan Association
Competition in Watonwan County
2014 | 2014 | 2013 | 2013 | |||||||||||||||||||||
2014 | Total | Total | Total | Total | ||||||||||||||||||||
Number | Deposits in | Market | Deposits in | Market | ||||||||||||||||||||
2014 | 2013 | of | Market | Share | Market | Share | ||||||||||||||||||
Rank | Rank Institution (ST) | Type | Branches | ($000) | (%) | ($000) | (%) | |||||||||||||||||
1 | 1 Citizens Bank Group Inc. (MN) | Bank HC | 3 | 172,084 | 50.82 | 166,746 | 51.35 | |||||||||||||||||
2 | 2 Odin Bancshares Inc. (MN) | Bank HC | 1 | 33,794 | 9.98 | 33,450 | 10.30 | |||||||||||||||||
3 | 3 Trimont Bancorp. (MN) | Bank HC | 2 | 32,707 | 9.66 | 30,844 | 9.50 | |||||||||||||||||
4 | 4 Ctzns Bancorp. of New Ulm Inc. (MN) | Bank HC | 1 | 27,279 | 8.06 | 25,668 | 7.90 | |||||||||||||||||
5 | 5 Frst Natl Agcy St. James Inc. (MN) | Bank HC | 1 | 26,886 | 7.94 | 24,999 | 7.70 | |||||||||||||||||
6 | 6 St James FS&LA (MN) | Savings Bank | 1 | 24,277 | 7.17 | 24,715 | 7.61 | |||||||||||||||||
7 | 7 Alliance Financial Svcs Inc (MN) | Bank HC | 1 | 21,621 | 6.38 | 18,318 | 5.64 | |||||||||||||||||
Total For Institutions In Market | 10 | 338,648 | 324,740 |
Note: Market Share is for U.S. Territories only and non-retail branches are not included.
Source: SNL Financial and FDIC data
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III. | COMPARISONS WITH PUBLICLY TRADED THRIFTS |
Introduction
An integral aspect in our valuation of St. James Federal entails a financial comparison of the Association with a selected group of publicly traded peer thrifts (“Comparable Group”). For the reasons stated below, the Comparable Group, which was selected based upon similar operating characteristics, are comprised solely of publicly traded thrifts. This section describes the methodologies and key factors utilized in the selection of the appropriate Comparable Group. Based on our comparative financial analysis with the Comparable Group in this section and Section IV and our subsequent review and analysis of the group’s pricing multiples in Section V, we are able to determine an appropriate valuation of the Association.
The various characteristics of the Comparable Group provide the basis for applying the appropriate adjustments for St. James Federal’s pro forma value. Factors that impact the Association’s pro forma value relative to the Comparable Group include balance sheet composition, capital levels, asset quality, profitability level and market area.
Our goal in the selection process for a Comparable Group is to find thrifts with operating characteristics that most closely match those of the Association. However, given the declining universe of actively traded thrifts with similar ownership structures, financial characteristics, business strategies and market areas, it is not possible to select a Comparable Group of thrifts that are exactly similar to the Association.
Selection Process
As of the date of this appraisal, there are a total of 192 publicly traded thrift institutions (inclusive of OTC Bulletin Board and Pink Sheets). Of this total, 31 institutions were mutual holding companies (“MHCs”) and 10 were under acquisition and were eliminated due to their unique pricing characteristics.
Of the 151 remaining institutions, there are a total of 62 that do not trade on a major exchange and 16 that completed an initial public offering within the past year. McAuliffe Financial limited the Comparable Group to institutions whose common stock is listed on a major exchange (defined as the NYSE or NASDAQ) since these companies tend to trade regularly. Thrifts that trade over the counter or as pink sheets are not included in the Comparable Group, due to irregular trading activity and wide bid/ask spreads, which may skew the trading value and make trading multiples less reliable as an indicator of value. Additionally, we believe it is
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important that the peers must be seasoned publicly traded issues that have at least one year of trading history. The resulting inventory of available thrifts to select a Comparable Group is 73.
Also in our selection process, we considered the following factors, to the extent possible:
· | Non-performing asset levels for the Comparable Group should be at or below industry averages. The median and average level of non-performing assets to total assets for all publicly traded thrifts was 1.91% and 1.58%, respectively, as of the date of the appraisal. |
· | The Comparable Group should have a capital level at or above industry averages. Each member of the Comparable Group should show a tangible equity to tangible assets ratio of at least 10%. |
· | Members of the Comparable Group should show positive reported income or, at least, positive core earnings. |
· | In general, the Comparable Group should be comprised of community oriented thrifts and, to the extent possible, operating primarily in rural markets (We attempted to exclude institutions whose deposit base was concentrated in a densely populated urban setting or highly populated metropolitan area). |
In our selection process noted above, we attempted to exclude any potential comparable group members with significantly high non-performing asset levels or that show an absence of core earnings since institutions with these attributes are typically discounted in the marketplace.
It is important to note that, given the relatively small universe of exchange traded, small asset sized thrifts, and our additional selection criteria, the number of acceptable thrifts worthy of consideration are very limited.
Our selection process results in a total of 10 Comparable Group thrifts. McAuliffe Financial reviewed the recent publicly available reports and news releases of these 10 thrifts and determined that all 10 were acceptable comparables. Table 3.1 identifies the Comparable Group members.
In addition to the selected Comparable Group, a Supplemental Group of OTC Bulletin Board and Pink Sheet thrifts have been included to provide further insight on the trading environment and pricing characteristics of small institutions like St. James Federal. The
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selection process for the Supplemental Group was the same as that used for the Comparable Group. Table 3.2 presents some characteristics of the Supplemental Group.
Review of the Comparable Group
Certain key characteristics of the Comparable Group were examined as they relate and compare to St James Federal. The following five characteristics were examined:
Table 3.1
St James Federal Peer Group
Institution Name | Ticker | City, State | Industry | Offices | IPO Date | Total Assets | ||||||
First Federal of Northern Michigan Bancorp, Inc. | FFNM | Alpena, MI | Savings Bank | 9 | 4/4/2005 | 311,923 | ||||||
FS Bancorp, Inc. | FSBW | Mountlake Terrace, WA | Savings Bank | 8 | 7/10/2012 | 509,754 | ||||||
HMN Financial, Inc. | HMNF | Rochester, MN | Savings Bank | 11 | 6/30/1994 | 577,426 | ||||||
La Porte Bancorp, Inc. | LPSB | La Porte, IN | Savings Bank | 7 | 10/5/2012 | 518,616 | ||||||
Madison County Financial, Inc. | MCBK | Madison, NE | Savings Bank | 5 | 10/4/2012 | 301,929 | ||||||
Polonia Bancorp, Inc. | PBCP | Huntingdon Valley, PA | Savings Bank | 5 | 11/13/2012 | 297,885 | ||||||
Prudential Bancorp, Inc. | PBIP | Philadelphia, PA | Savings Bank | 7 | 10/10/2013 | 527,082 | ||||||
United Community Bancorp | UCBA | Lawrenceburg, IN | Savings Bank | 8 | 1/10/2013 | 508,938 | ||||||
Wolverine Bancorp, Inc. | WBKC | Midland, MI | Savings Bank | 4 | 1/20/2011 | 338,671 | ||||||
WVS Financial Corp. | WVFC | Pittsburgh, PA | Savings Bank | 6 | 11/29/1993 | 294,689 |
St James Federal Supplemental Peer Group
Institution Name | Ticker | City, State | Industry | Offices | IPO Date | Total Assets | ||||||
CCSB Financial Corp. | CCFC | Munster, IN | Savings Bank | 3 | 4/1/1996 | 87,263 | ||||||
Community Investors Bancorp, Inc. | CIBN | Liberty, MO | Savings Bank | 3 | 1/9/2003 | 131,599 | ||||||
First Niles Financial, Inc. | FNFI | Bucyrus, OH | Savings Bank | 5 | 2/7/1995 | 96,437 | ||||||
Great American Bancorp, Inc. | GTPS | Niles, OH | Savings Bank | 1 | 10/27/1998 | 176,704 | ||||||
Hibernia Bancorp, Inc. | HIBE | Champaign, IL | Savings Bank | 2 | 6/30/1995 | 105,445 | ||||||
Patriot Federal Bank | PFDB | Canajoharie, NY | Savings Bank | 3 | 12/31/2005 | 122,365 | ||||||
Quarry City Savings and Loan Association | QRRY | Warrensburg, MO | Savings Bank | 1 | 7/26/2013 | 46,757 | ||||||
Royal Financial, Inc. | RYFL | Chicago, IL | Savings Bank | 3 | 1/21/2005 | 128,043 | ||||||
United-American Savings Bank | UASB | Pittsburgh, PA | Savings Bank | 1 | 8/6/2010 | 90,084 | ||||||
Versailles Financial Corporation | VERF | Versailles, OH | Savings Bank | 1 | 1/11/2010 | 52,513 |
Asset size
1. | Balance Sheet Mix |
2. | Asset Quality |
3. | Equity to Asset Level |
4. | Profitability |
Asset Size
We selected a peer group of thrifts which all had asset sizes below $600 million which generally represents small community based financial institutions. However, because of St
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James Federal’s very small asset size of $27.0 million at December 31, 2014, there are no publicly traded peers that closely match the Association’s limited asset base. The Comparable Group, however, does represent a group of small community based financial institutions. The Comparable Group had a median asset size of $424 million, and range in size from $298 million to $577 million. Reflective of their small asset size, the Comparable Group thrifts have a below average number of branches that range from 4 to 11 (see Table 3.1).
The Supplemental Peer Group reflects a group with smaller assets and less branch locations. Their median asset size was $101 million, and range in size from $47 million to $177 million and had a branch network of 1 to 5 branches.
Balance Sheet Mix
Since fiscal 2010, St James Federal has maintained an above average level of cash and investments relative to assets, and has historically maintained a high percentage of deposits as a liability funding source. For the Association, cash and investments equaled 29.4% of assets and deposits equaled 89.8% of assets at December 31, 2014. While certain members of the Comparable Group also maintained above average levels of cash and investments and deposits, the Comparable Group, on average, maintained cash and investments and deposits levels that were lower as lending opportunities were more prevalent in their larger markets. The median cash and investments to assets ratio and deposits to assets ratio for the Comparable Group was 32.7% and 72.0%, respectively, while the Supplemental Group had ratios of 20.0% and 76.8%, respectively (see Table 3.2).
Asset Quality
At December 31, 2014, St James Federal’s non-performing assets (“NPAs”) to total assets ratio was 0.71%. This compared to a median ratio of 1.48% for the Comparable Group and 1.32% for the Supplemental Group (see Table 3.2). These asset quality ratios for the Association, the Comparable Group and Supplemental Group were favorable compared to the publicly traded thrift industry average of 1.91%.
Equity to Asset Level
At December 31, 2014, the Association showed an equity to asset ratio and tangible equity to tangible assets ratio of 10.12%. If the Association was able to complete a standard conversion on its own, the Association’s pro forma tangible equity ratio would approximate
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14.52% at the midpoint of the valuation range. The median equity and tangible equity ratio for the Comparable Group was 13.54% and 13.10%, respectively while the Supplemental Group had respective ratios of 12.20% and 12.20% (see Table 3.2).
Profitability
The thrift industry, for the most part, has reported an increasing trend in reported profitability during the last several years with significant earnings variability. Profitability results during this time period largely reflect lower provisions for losses and, in some cases, improved net interest margins from low cost of funds and return of more interest earning assets from their nonperforming status. St James Federal’s operating performance, on the other hand, have remained relatively consistent over the same time frame, though during the twelve months ended December 31, 2014, the Association’s earnings were affected by losses on the sale of real estate. For the twelve months ended December 31, 2014, the Association reported a return on assets (“ROA”) of 0.36% and return on equity (“ROE”) of 3.55%. Core ROA and ROE for the Association was 0.49% and 4.84%, respectively. The pro forma core ROA and ROE for the Association is 0.33% and 3.25%, respectively. The Comparable Group reported a median ROA of 0.66% and a median ROE of 3.97% and a median core ROA and ROE of 0.55% and 4.05%, respectively (see Table 3.2 and Table 4.6). The Supplemental Group reported a median ROA of 0.33% and a median ROE of 2.12% and a median core ROA and ROE of 0.24% and 1.93%, respectively. The core ROA figure for the 10 Comparable Group thrifts ranged between a low of 0.00% to a high of 1.21% while the core ROE figures ranged from a low of 0.02% to a high of 9.12%. The Supplemental Group had a core ROA range of (0.04%) to 0.70% and a core ROE range of (0.42%) to 8.56%. The Association’s, Comparable Group’s and the Supplement Group core ROA and ROE levels were below the industry median ROA and ROE of 0.74 and 5.46%, respectively.
Conclusion
Although no single thrift or group of thrifts can be precisely the same as any other due to the numerous variables related to the nature of an institution’s condition, operations and environment, based on the foregoing selection criteria as well as the detailed comparative metrics presented in Section IV, we believe that the selected Comparable Group is appropriate, subject to the adjustments applied in the following section.
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Table 3.2
Key Financial Measures
St James Federal | Comparative Group Median | Supplemental Group Median | ||||||||||
At or for the 12 | At or for the | At or for the 12 | ||||||||||
months ended 12/31/14 | most recent 12 mo period | most recent 12 mo period | ||||||||||
Balance Sheet Data | ||||||||||||
Net Loans to Deposits | 76.66 | 88.20 | 97.31 | |||||||||
Net Loans to Assets | 68.84 | 63.66 | 71.57 | |||||||||
Cash and Investments to Assets | 29.42 | 32.66 | 20.01 | |||||||||
Deposits to Assets | 89.80 | 71.96 | 76.78 | |||||||||
Borrowings to Assets | 0.00 | 7.80 | 9.40 | |||||||||
Balance Sheet Growth | ||||||||||||
(Latest 12 Months) | ||||||||||||
Asset Growth Rate | 1.51 | 2.31 | 5.83 | |||||||||
Loan Growth Rate | 1.59 | 9.71 | 9.19 | |||||||||
Deposit Growth Rate | 1.31 | 0.41 | 3.43 | |||||||||
Asset Quality | ||||||||||||
NPAs/Assets | 0.71 | 1.48 | 1.32 | |||||||||
Capital | ||||||||||||
Equity to Assets | 10.12 | 13.54 | 12.20 | |||||||||
Tang. Equity to Tang. Assets | 10.12 | 13.10 | 12.20 | |||||||||
Intangible Assets to Equity | 0.00 | 0.00 | 0.00 | |||||||||
Equity + Reserves to Assets | 11.35 | 14.56 | 13.24 | |||||||||
Profitability | ||||||||||||
ROA | 0.36 | 0.66 | 0.33 | |||||||||
ROE | 3.55 | 3.97 | 2.12 | |||||||||
Core ROA | 0.49 | 0.55 | 0.24 | |||||||||
Core ROE | 4.84 | 4.05 | 1.93 |
Source: St James Federal's call reports, internal financials and SNL Financial
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IV. | MARKET VALUE ADJUSTMENTS |
Introduction
In this section, we make appropriate adjustments to determine the estimated pro forma market value of St James Federal based on a comparison of the Association with the Comparable Group. These adjustments will take into consideration such key items as financial condition, balance sheet growth, earnings performance, market area, cash dividends, liquidity of the stock to be issued, recent regulatory issues, management, subscription interest and thrift equity market conditions.
Based upon the pricing multiples of the Comparable Group and the types of adjustments described above, we will determine an estimated pro forma market value for St James Federal.
Financial Condition
In analyzing a thrifts institution’s financial condition, investors focus on both balance sheet strength and balance sheet mix. In this connection, we focus on such factors as equity/capital levels, balance sheet mix, funding mix, liquidity, interest rate risk and asset quality. Tables 4.1 through 4.4 highlight St James Federal’s key balance sheet, capital and asset quality data relative to the comparative group.
As noted in Table 4.1, the Association and the Comparable Group have a relatively small asset size. St James Federal’s total assets of $27.2 million compares to a median and average asset size of $423.8 million and $418.7 million, respectively, for the Comparative Group. The Supplemental Group, which includes thrifts traded on the Bulletin Board and Pink Sheets, had median and average asset sizes of $100.9 million and $103.7 million respectively. The Association has only one office while the median branch office size of the comparative group is six offices (also average of six offices) and 3 offices for the Supplemental Group. Subsequent to the merger with Wells Financial, the combined organization will have a slightly smaller asset base relative to the peer group and will operate from a 10 branch network.
The Association is a “well capitalized” institution under regulatory capital standards. The Association’s tangible equity to tangible assets ratio (St. James Federal has no intangible assets) of 10.12% compared to the Comparable Group median and average tangible equity ratios of 13.54% and 15.22%, respectively (See Table 4.3). The median and average ratios for the
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Supplemental Group were 12.20% and 13.94% respectively. Subsequent to the merger with Wells Financial, the pro forma consolidated tangible equity ratio is projected to be 11.03% at the midpoint of the offering valuation range.
Table 4.1
Key Balance Sheet Data
Company Name | Total | Loans/ | Loans/ | Securities/ | Cash & Sec. | Deposits/ | Borrowings/ | |||||||||||||||||||||||
Comparable Group | Ticker | Assets | Deposits | Assets | Assets | Assets | Assets | Assets | ||||||||||||||||||||||
First Federal of Northern Michigan | FFNM | 311,923 | 63.76 | 52.99 | 38.76 | 41.02 | 82.87 | 6.98 | ||||||||||||||||||||||
FS Bancorp, Inc. | FSBW | 509,754 | 93.54 | 81.27 | 9.89 | 13.83 | 82.48 | 3.34 | ||||||||||||||||||||||
HMN Financial, Inc. | HMNF | 577,426 | 75.18 | 64.11 | 24.00 | 32.08 | 86.03 | 0.00 | ||||||||||||||||||||||
La Porte Bancorp, Inc. | LPSB | 518,616 | 90.89 | 59.46 | 30.75 | 33.71 | 65.71 | 17.37 | ||||||||||||||||||||||
Madison County Financial, Inc. | MCBK | 301,929 | 114.57 | 78.18 | 15.41 | 16.45 | 69.65 | 8.61 | ||||||||||||||||||||||
Polonia Bancorp, Inc. | PBCP | 297,885 | 107.22 | 71.79 | 21.04 | 23.63 | 65.69 | 19.81 | ||||||||||||||||||||||
Prudential Bancorp, Inc. | PBIP | 527,082 | 85.51 | 63.21 | 26.95 | 33.24 | 74.27 | 0.06 | ||||||||||||||||||||||
United Community Bancorp | UCBA | 508,938 | 57.89 | 47.62 | 38.74 | 46.27 | 82.63 | 2.95 | ||||||||||||||||||||||
Wolverine Bancorp, Inc. | WBKC | 338,671 | 137.45 | 87.55 | 0.98 | 10.70 | 65.11 | 15.65 | ||||||||||||||||||||||
WVS Financial Corp. | WVFC | 294,689 | 25.35 | 12.16 | 84.91 | 85.80 | 48.03 | 40.79 | ||||||||||||||||||||||
Average | 418,691 | 85.14 | 61.83 | 29.14 | 33.67 | 72.25 | 11.56 | |||||||||||||||||||||||
Median | 423,805 | 88.20 | 63.66 | 25.48 | 32.66 | 71.96 | 7.80 | |||||||||||||||||||||||
Maximum | 577,426 | 137.45 | 87.55 | 84.91 | 85.80 | 86.03 | 40.79 | |||||||||||||||||||||||
Minimum | 294,689 | 25.35 | 12.16 | 0.98 | 10.70 | 48.03 | 0.00 | |||||||||||||||||||||||
Supplemental Group | ||||||||||||||||||||||||||||||
CCSB Financial Corp. | CCFC | 87,263 | 83.06 | 69.26 | 7.71 | 20.26 | 84.70 | 2.86 | ||||||||||||||||||||||
Community Investors Bancorp, Inc. | CIBN | 131,599 | 107.05 | 77.35 | 12.61 | 18.56 | 71.75 | 19.38 | ||||||||||||||||||||||
First Niles Financial, Inc. | FNFI | 96,437 | 39.08 | 23.93 | 63.45 | 71.15 | 61.40 | 25.92 | ||||||||||||||||||||||
Great American Bancorp, Inc. | GTPS | 176,704 | 67.84 | 57.93 | 0.61 | 37.26 | 86.00 | 2.26 | ||||||||||||||||||||||
Hibernia Bancorp, Inc. | HIBE | 105,445 | 105.58 | 80.64 | 9.31 | 14.31 | 76.87 | 1.42 | ||||||||||||||||||||||
Patriot Federal Bank | PFDB | 122,365 | 92.74 | 70.50 | 24.63 | 26.08 | 76.69 | 13.83 | ||||||||||||||||||||||
Quarry City Savings and Loan Assoc | QRRY | 46,757 | 101.89 | 82.53 | 0.20 | 13.62 | 80.54 | 2.14 | ||||||||||||||||||||||
Royal Financial, Inc. | RYFL | 128,043 | 106.72 | 70.60 | 16.68 | 19.33 | 66.67 | 11.71 | ||||||||||||||||||||||
United-American Savings Bank | UASB | 90,084 | 86.70 | 72.54 | 21.84 | 24.89 | 83.92 | 7.37 | ||||||||||||||||||||||
Versailles Financial Corporation | VERF | 52,513 | 119.44 | 76.27 | 1.42 | 19.76 | 64.17 | 11.43 | ||||||||||||||||||||||
Average | 103,721 | 91.01 | 68.16 | 15.84 | 26.52 | 75.27 | 9.83 | |||||||||||||||||||||||
Median | 100,941 | 97.31 | 71.57 | 10.96 | 20.01 | 76.78 | 9.40 | |||||||||||||||||||||||
Maximum | 176,704 | 119.44 | 82.53 | 63.45 | 71.15 | 86.00 | 25.92 | |||||||||||||||||||||||
Minimum | 46,757 | 39.08 | 23.93 | 0.20 | 13.62 | 61.40 | 1.42 | |||||||||||||||||||||||
St James Federal Savings Loan Assoc. | 27,215 | 76.66 | 68.84 | 4.52 | 29.42 | 89.80 | 0.00 | |||||||||||||||||||||||
Variance to the Comparable Median | (396,590 | ) | (11.54 | ) | 5.18 | (20.96 | ) | (3.24 | ) | 17.84 | (7.80 | ) | ||||||||||||||||||
Variance to the Supplemental Median | (73,726 | ) | (20.65 | ) | (2.73 | ) | (6.44 | ) | 9.41 | 13.02 | (9.40 | ) |
Source: SNL Financial
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Table 4.2
Comparative Group Loan Composition
Company Name | Const | Total | Consumer | |||||||||||||||||||||||||||
Comparable Group | Ticker | & Dev | 1-4 Unit Res | MultiFamily | Other | RE Lns | Com Bus | & Other | ||||||||||||||||||||||
First Federal of Northern Michigan | FFNM | 1.17 | 43.29 | 1.25 | 35.72 | 81.44 | 10.84 | 6.71 | ||||||||||||||||||||||
FS Bancorp, Inc. | FSBW | 14.70 | 11.90 | 4.12 | 10.93 | 26.95 | 19.80 | 38.79 | ||||||||||||||||||||||
HMN Financial, Inc. | HMNF | 1.98 | 19.31 | 2.05 | 45.07 | 68.41 | 18.11 | 13.49 | ||||||||||||||||||||||
La Porte Bancorp, Inc. | LPSB | 3.49 | 55.52 | 5.56 | 25.98 | 85.14 | 5.62 | 5.66 | ||||||||||||||||||||||
Madison County Financial, Inc. | MCBK | 1.69 | 14.22 | 3.25 | 59.32 | 76.79 | 17.21 | 3.28 | ||||||||||||||||||||||
Polonia Bancorp, Inc. | PBCP | 0.00 | 88.35 | 1.36 | 7.27 | 96.98 | 0.08 | 2.83 | ||||||||||||||||||||||
Prudential Bancorp, Inc. | PBIP | 9.89 | 82.74 | 1.72 | 7.99 | 89.93 | 0.20 | 4.76 | ||||||||||||||||||||||
United Community Bancorp | UCBA | 2.85 | 52.60 | 8.87 | 19.04 | 80.50 | 3.30 | 13.78 | ||||||||||||||||||||||
Wolverine Bancorp, Inc. | WBKC | 11.07 | 15.16 | 20.13 | 49.47 | 84.76 | 5.06 | 2.68 | ||||||||||||||||||||||
WVS Financial Corp. | WVFC | 9.92 | 55.61 | 11.27 | 11.09 | 77.96 | 3.93 | 8.11 | ||||||||||||||||||||||
Average | 5.68 | 43.87 | 5.96 | 27.19 | 76.89 | 8.42 | 10.01 | |||||||||||||||||||||||
Median | 3.17 | 47.95 | 3.68 | 22.51 | 80.97 | 5.34 | 6.18 | |||||||||||||||||||||||
Maximum | 14.70 | 88.35 | 20.13 | 59.32 | 96.98 | 19.80 | 38.79 | |||||||||||||||||||||||
Minimum | 0.00 | 11.90 | 1.25 | 7.27 | 26.95 | 0.08 | 2.68 | |||||||||||||||||||||||
Supplemental Group | ||||||||||||||||||||||||||||||
CCSB Financial Corp. | CCFC | 4.94 | 53.60 | 9.13 | 21.28 | 84.00 | 7.16 | 4.83 | ||||||||||||||||||||||
Community Investors Bancorp, Inc. | CIBN | 1.97 | 63.23 | 5.77 | 9.30 | 78.30 | 6.10 | 13.63 | ||||||||||||||||||||||
First Niles Financial, Inc. | FNFI | 0.53 | 72.35 | 1.03 | 14.95 | 88.33 | 0.48 | 10.66 | ||||||||||||||||||||||
Great American Bancorp, Inc. | GTPS | 1.78 | 47.50 | 14.25 | 19.51 | 83.04 | 5.94 | 9.24 | ||||||||||||||||||||||
Hibernia Bancorp, Inc. | HIBE | 4.13 | 59.60 | 0.15 | 30.22 | 89.98 | 4.63 | 1.06 | ||||||||||||||||||||||
Patriot Federal Bank | PFDB | 2.70 | 55.76 | 1.03 | 15.17 | 71.95 | 10.33 | 15.02 | ||||||||||||||||||||||
Quarry City Savings and Loan Assoc | QRRY | 13.86 | 47.90 | NA | NA | 84.81 | 2.92 | 5.13 | ||||||||||||||||||||||
Royal Financial, Inc. | RYFL | 5.30 | 25.18 | 27.79 | 35.61 | 88.58 | 4.91 | 1.21 | ||||||||||||||||||||||
United-American Savings Bank | UASB | 2.33 | 73.83 | 2.07 | 9.31 | 85.21 | 2.16 | 10.29 | ||||||||||||||||||||||
Versailles Financial Corporation | VERF | 0.68 | 70.84 | 0.20 | 19.46 | 90.50 | 4.06 | 4.71 | ||||||||||||||||||||||
Average | 3.82 | 56.98 | 6.82 | 19.42 | 84.47 | 4.87 | 7.58 | |||||||||||||||||||||||
Median | 2.51 | 57.68 | 2.07 | 19.46 | 85.01 | 4.77 | 7.18 | |||||||||||||||||||||||
Maximum | 13.86 | 73.83 | 27.79 | 35.61 | 90.50 | 10.33 | 15.02 | |||||||||||||||||||||||
Minimum | 0.53 | 25.18 | 0.15 | 9.30 | 71.95 | 0.48 | 1.06 | |||||||||||||||||||||||
St James Federal Savings Loan Assoc. | 1.13 | 31.82 | 0.00 | 31.17 | 64.12 | 7.23 | 28.66 | |||||||||||||||||||||||
Variance to the Comparable Median | (2.04 | ) | (16.13 | ) | (3.68 | ) | 8.66 | (16.85 | ) | 1.89 | 22.48 | |||||||||||||||||||
Variance to the Supplemental Median | (1.38 | ) | (25.86 | ) | (2.07 | ) | 11.71 | (20.89 | ) | 2.46 | 21.48 |
Source: SNL Financial
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Table 4.3
Comparative Group Capital Ratios
Company Name | Equity/ | Tang. Equity/ | Intang./ | Equity+Reserves/ | ||||||||||||||
Comparable Group | Ticker | Assets | Tang. Assets | Equity | Assets | |||||||||||||
First Federal of Northern Michigan | FFNM | 9.61 | 9.22 | 4.50 | 10.08 | |||||||||||||
FS Bancorp, Inc. | FSBW | 12.92 | 12.92 | 0.00 | 14.11 | |||||||||||||
HMN Financial, Inc. | HMNF | 13.16 | 13.16 | 0.00 | 14.61 | |||||||||||||
La Porte Bancorp, Inc. | LPSB | 15.89 | 14.46 | 10.48 | 16.58 | |||||||||||||
Madison County Financial, Inc. | MCBK | 20.47 | 20.20 | 1.67 | 22.82 | |||||||||||||
Polonia Bancorp, Inc. | PBCP | 13.03 | 13.03 | 0.00 | 13.51 | |||||||||||||
Prudential Bancorp, Inc. | PBIP | 24.31 | 24.31 | 0.00 | 24.78 | |||||||||||||
United Community Bancorp | UCBA | 13.91 | 12.94 | NA | 14.51 | |||||||||||||
Wolverine Bancorp, Inc. | WBKC | 18.15 | 18.15 | 0.00 | 20.66 | |||||||||||||
WVS Financial Corp. | WVFC | 10.80 | 10.80 | 0.00 | 10.89 | |||||||||||||
Average | 15.22 | 14.92 | 1.85 | 16.25 | ||||||||||||||
Median | 13.54 | 13.10 | 0.00 | 14.56 | ||||||||||||||
Maximum | 24.31 | 24.31 | 10.48 | 24.78 | ||||||||||||||
Minimum | 9.61 | 9.22 | 0.00 | 10.08 | ||||||||||||||
Supplemental Group | ||||||||||||||||||
CCSB Financial Corp. | CCFC | 12.02 | 12.02 | 0.00 | 13.80 | |||||||||||||
Community Investors Bancorp, Inc. | CIBN | 8.37 | 8.37 | 0.00 | 9.35 | |||||||||||||
First Niles Financial, Inc. | FNFI | 12.39 | 12.39 | 0.00 | 12.68 | |||||||||||||
Great American Bancorp, Inc. | GTPS | 9.31 | 9.06 | 2.95 | 10.01 | |||||||||||||
Hibernia Bancorp, Inc. | HIBE | 20.75 | 20.75 | 0.00 | 21.39 | |||||||||||||
Patriot Federal Bank | PFDB | 9.36 | 9.22 | 1.58 | 10.25 | |||||||||||||
Quarry City Savings and Loan Assoc | QRRY | 16.94 | 16.94 | 0.00 | 17.98 | |||||||||||||
Royal Financial, Inc. | RYFL | 20.20 | 20.20 | 0.00 | 21.27 | |||||||||||||
United-American Savings Bank | UASB | 8.14 | 8.14 | 0.00 | 8.59 | |||||||||||||
Versailles Financial Corporation | VERF | 21.91 | 21.91 | 0.00 | 22.39 | |||||||||||||
Average | 13.94 | 13.90 | 0.45 | 14.77 | ||||||||||||||
Median | 12.20 | 12.20 | 0.00 | 13.24 | ||||||||||||||
Maximum | 21.91 | 21.91 | 2.95 | 22.39 | ||||||||||||||
Minimum | 8.14 | 8.14 | 0.00 | 8.59 | ||||||||||||||
St James Federal Savings Loan Assoc. | 10.12 | 10.12 | 0.00 | 11.35 | ||||||||||||||
Variance to the Comparable Median | (3.42 | ) | (2.98 | ) | 0.00 | (3.21 | ) | |||||||||||
Variance to the Supplemental Median | (2.08 | ) | (2.08 | ) | 0.00 | (1.89 | ) |
Source: SNL Financial
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Table 4.4
Comparative Group Asset Quality
Company Name | NPLs/ | Reserves/ | NPAs | NPAs | Reserves/ | |||||||||||||||||
Comparable Group | Ticker | Loans | NPLs | Assets | Equity | Loans | ||||||||||||||||
First Federal of Northern Michigan | FFNM | 0.58 | 153.14 | 1.23 | 12.82 | 0.88 | ||||||||||||||||
FS Bancorp, Inc. | FSBW | 0.29 | 500.82 | 0.24 | 1.85 | 1.45 | ||||||||||||||||
HMN Financial, Inc. | HMNF | 2.99 | 76.30 | 2.43 | 18.45 | 2.22 | ||||||||||||||||
La Porte Bancorp, Inc. | LPSB | 2.29 | 57.22 | 2.12 | 9.52 | 1.16 | ||||||||||||||||
Madison County Financial, Inc. | MCBK | 0.18 | NM | 0.15 | 0.60 | 2.94 | ||||||||||||||||
Polonia Bancorp, Inc. | PBCP | 1.15 | 35.34 | 1.51 | 13.09 | 0.67 | ||||||||||||||||
Prudential Bancorp, Inc. | PBIP | 2.20 | 34.02 | 1.46 | 6.00 | 0.75 | ||||||||||||||||
United Community Bancorp | UCBA | 5.39 | 32.36 | 2.73 | 20.31 | 2.21 | ||||||||||||||||
Wolverine Bancorp, Inc. | WBKC | 1.72 | 162.46 | 1.68 | 9.27 | 2.79 | ||||||||||||||||
WVS Financial Corp. | WVFC | 1.29 | 55.08 | 0.16 | 1.45 | 0.71 | ||||||||||||||||
Average | 1.81 | 122.97 | 1.37 | 9.34 | 1.58 | |||||||||||||||||
Median | 1.51 | 57.22 | 1.48 | 9.40 | 1.31 | |||||||||||||||||
Maximum | 5.39 | 500.82 | 2.73 | 20.31 | 2.94 | |||||||||||||||||
Minimum | 0.18 | 32.36 | 0.15 | 0.60 | 0.67 | |||||||||||||||||
Supplemental Group | ||||||||||||||||||||||
CCSB Financial Corp. | CCFC | 4.92 | 49.81 | 4.36 | 36.47 | 2.53 | ||||||||||||||||
Community Investors Bancorp, Inc. | CIBN | 3.54 | 35.77 | 2.84 | 33.98 | 1.27 | ||||||||||||||||
First Niles Financial, Inc. | FNFI | 5.82 | 20.33 | 1.79 | 14.47 | 1.18 | ||||||||||||||||
Great American Bancorp, Inc. | GTPS | 1.36 | 87.62 | 1.28 | 14.24 | 1.19 | ||||||||||||||||
Hibernia Bancorp, Inc. | HIBE | 0.34 | 236.11 | 0.30 | 1.47 | 0.79 | ||||||||||||||||
Patriot Federal Bank | PFDB | 1.38 | 91.07 | 0.98 | 10.46 | 1.25 | ||||||||||||||||
Quarry City Savings and Loan Assoc | QRRY | 0.82 | 152.83 | 0.68 | 4.02 | 1.25 | ||||||||||||||||
Royal Financial, Inc. | RYFL | 1.13 | 133.14 | 2.20 | 11.64 | 1.50 | ||||||||||||||||
United-American Savings Bank | UASB | 1.30 | 46.66 | 1.36 | 16.70 | 0.61 | ||||||||||||||||
Versailles Financial Corporation | VERF | 0.00 | NM | 0.00 | 0.00 | 0.63 | ||||||||||||||||
Average | 2.06 | 94.82 | 1.58 | 14.34 | 1.22 | |||||||||||||||||
Median | 1.33 | 87.62 | 1.32 | 12.94 | 1.22 | |||||||||||||||||
Maximum | 5.82 | 236.11 | 4.36 | 36.47 | 2.53 | |||||||||||||||||
Minimum | 0.00 | 20.33 | 0.00 | 0.00 | 0.61 | |||||||||||||||||
St James Federal Savings Loan Assoc. | 0.74 | 235.21 | 0.71 | 6.30 | 1.75 | |||||||||||||||||
Variance to the Comparable Median | (0.77 | ) | 177.99 | (0.77 | ) | (3.10 | ) | 0.44 | ||||||||||||||
Variance to the Supplemental Median | (0.59 | ) | 147.59 | (0.61 | ) | (6.64 | ) | 0.53 |
Source: SNL Financial
McAuliffe Financial, LLC Page 31 |
The Association has historically maintained a high level of cash and investments and funded the Association’s lending and investment programs primarily with deposits. The Association’s cash and investments represented 29.4% of total assets at December 31, 2014 compared to a median ratio of 32.6% for the Comparative Group and 20.0% for the Supplemental Group. Deposits, on the other hand, represented 89.8% of total assets relative to a median ratio of 72.0% for the Comparative Group and 76.8% for the Supplement Group. Loans relative to assets were 68.8% for St. James Federal versus a median of 63.7% for the Comparative Group and 71.6% for the Supplemental Group while the loan to deposit ratio was 76.7% for the Association versus a median of 88.2% for the Comparative Group and 97.3% for the Supplemental Group.
We have also compared St. James Federal’s loan portfolio composition to that of the Comparable Group. As shown in Table 4.2, 28.7% of the Association’s total loan portfolio is concentrated in consumer and other loans with a large portion of the other loans comprising agricultural production loans. Additionally, 31.2% of the loan portfolio consists of “other” real estate loans largely consisting of farm loans. The Comparable Group’s loan portfolio is more focused on 1-4 family lending. Permanent one-to-four family residential loans constitute 48.0% of the Comparable Group’s total loan portfolio and 57.7% for the Supplemental Group compared to 31.8% for the Association.
St. James Federal’s interest rate risk position is presented in Section I. The Association’s interest rate risk position appears to be within the acceptable limits established in its Interest Rate Risk Policy guidelines. While no similar interest rate risk data is readily available for the Comparable Group, we have duly noted St. James Federal’s diversified loan portfolio appears to adequately address interest rate fluctuations.
Asset quality is also an important consideration in assessing St. James Federal’s estimated market value. We have performed an analysis of St James Federal’s non-performing assets (“NPAs”), non-performing loans (“NPLs”) and allowance for loan loss (“reserves”) levels compared to the Comparable Group and Supplemental Group (see Table 4.4). The Association’s level of NPLs to total loans of 0.74% is below the Comparable Group median and average ratios of 1.51% and 1.81%, respectively. The Supplemental Group had median and average ratios of 1.33% and 2.06%, respectively. The Association’s NPA to total assets ratio of 0.71% also
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compared favorably to the Comparative Group and Supplemental Group median ratios of 1.48% and 1.32%, respectively. The Comparable Group and Supplemental Group maintain a lower reserve level than does St. James Federal. The Association’s reserves level equal 1.75% of total loans versus the lower Comparable Group and Supplemental Group median levels of 1.31% and 1.22% respectively. Finally, the Association’s ratio of reserves to NPAs of 235.2% compared to the Comparable Group’s and Supplemental Group’s lower median ratio of 57.2% and 87.6%, respectively.
A comparison of St James Federal to the Comparable Group is summarized below:
Positive | Neutral | Negative | ||
-Lower NPLs and NPAs | -Liquid Assets Position | -Smaller Asset Size | ||
-Higher Deposit Levels | -Pro Forma Capital | and Number of Branches | ||
-Loan Reserves to Loans |
A comparison of St. James Federal to the Supplemental Group is summarized below:
Positive | Neutral | Negative | ||
-Lower NPLs and NPAs | -Liquid Assets Position | -Smaller Asset Size | ||
-Higher Deposit Levels | -Pro Forma Capital | and Number of Branches | ||
-Loan Reserves to Loans |
On balance, and taking into consideration St James Federal’s balance sheet strength relative to the Comparable Group and the Supplemental Group and the positive impact of the merger with Wells Financial, we believe that a slight upward adjustment is warranted for financial condition.
Balance Sheet Growth
As we discussed in Section I, St. James Federal’s asset growth rate since December 31, 2013 was 1.51%. Similarly, loan growth and deposit growth has been relatively flat over the past year. The large rural community surrounding St. James is largely controlled by farming and the growth prospects within the St. James community is very limited.
For the latest twelve months ended December 31, 2014, the Association’s growth in assets, loans and deposits were 1.51%, 1.59% and 1.31%, respectively. This compared to median asset, loans and deposit growth of 2.31%, 9.71% and 0.41% for the Comparable Group
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Table 4.5
Balance Sheet Growth
Company Name | Asset | Net Loan | Deposit | |||||||||||
Comparable Group | Ticker | Growth | Growth | Growth | ||||||||||
First Federal of Northern Michigan | FFNM | 45.84 | 18.42 | 63.56 | ||||||||||
FS Bancorp, Inc. | FSBW | 21.61 | 41.36 | 24.81 | ||||||||||
HMN Financial, Inc. | HMNF | (10.98 | ) | (4.90 | ) | (10.32 | ) | |||||||
La Porte Bancorp, Inc. | LPSB | (1.57 | ) | 4.24 | (1.71 | ) | ||||||||
Madison County Financial, Inc. | MCBK | 8.98 | 10.68 | 3.21 | ||||||||||
Polonia Bancorp, Inc. | PBCP | 4.25 | 8.74 | (1.00 | ) | |||||||||
Prudential Bancorp, Inc. | PBIP | 0.36 | 3.30 | 0.64 | ||||||||||
United Community Bancorp | UCBA | (0.64 | ) | (0.05 | ) | 0.02 | ||||||||
Wolverine Bancorp, Inc. | WBKC | 16.24 | 23.44 | 34.40 | ||||||||||
WVS Financial Corp. | WVFC | (6.16 | ) | 13.18 | 0.18 | |||||||||
Average | 7.79 | 11.84 | 11.38 | |||||||||||
Median | 2.31 | 9.71 | 0.41 | |||||||||||
Maximum | 45.84 | 41.36 | 63.56 | |||||||||||
Minimum | (10.98 | ) | (4.90 | ) | (10.32 | ) | ||||||||
Supplemental Group | ||||||||||||||
CCSB Financial Corp. | CCFC | (3.64 | ) | (6.07 | ) | (3.36 | ) | |||||||
Community Investors Bancorp, Inc. | CIBN | 6.71 | 14.34 | (2.57 | ) | |||||||||
First Niles Financial, Inc. | FNFI | (0.35 | ) | 6.61 | (4.66 | ) | ||||||||
Great American Bancorp, Inc. | GTPS | 2.92 | 9.62 | 3.01 | ||||||||||
Hibernia Bancorp, Inc. | HIBE | (0.71 | ) | 6.89 | (2.71 | ) | ||||||||
Patriot Federal Bank | PFDB | 15.80 | 30.18 | 3.84 | ||||||||||
Quarry City Savings and Loan Assoc | QRRY | 6.88 | 17.51 | 5.01 | ||||||||||
Royal Financial, Inc. | RYFL | 6.12 | 21.33 | 13.54 | ||||||||||
United-American Savings Bank | UASB | 5.54 | 8.26 | 5.11 | ||||||||||
Versailles Financial Corporation | VERF | 8.12 | 8.76 | 8.66 | ||||||||||
Average | 4.74 | 11.74 | 2.59 | |||||||||||
Median | 5.83 | 9.19 | 3.43 | |||||||||||
Maximum | 15.80 | 30.18 | 13.54 | |||||||||||
Minimum | (3.64 | ) | (6.07 | ) | (4.66 | ) | ||||||||
St James Federal Savings Loan Assoc. | 1.51 | 1.59 | 1.31 | |||||||||||
Variance to the Comparable Median | (0.80 | ) | (8.12 | ) | 0.90 | |||||||||
Variance to the Supplemental Median | (4.32 | ) | (7.60 | ) | (2.12 | ) |
Source: SNL Financial
McAuliffe Financial, LLC Page 34 |
(see Table 4.5). The Supplemental Group also experienced stronger asset, loan and deposit growth rates of 5.83%, 9.19% and 3.43%. Subsequent to merging with Wells Financial, the Association’s balance sheet growth will likely continue to be minimal as demographic data reflect limited population growth and market area growth opportunities are dim.
Balance sheet growth rates for the thrift industry is expected to reflect some expansion as thrifts are less affected by the impact of nonperforming assets and increased capital requirements. We believe that moderate downward adjustment is warranted for this item relative to both the Comparative Group and the Supplemental Group.
Earnings Performance
The earnings performance, including earnings sustainability and consistency of a thrift institution is determined by both internal and external factors. Internal factors include the composition of the balance sheet, the strength of the balance sheet (capital levels, interest rate and credit risk levels), the abilities of management and staff, the size and location of the branch office network and infrastructure in place to execute. External factors include the competitive environment, the interest rate environment, the regulatory climate and national and particularly local economic (including housing market) conditions.
For a small institution such as St James Federal that generate a less diversified revenue stream, net income levels are typically based on three major line items: (1) net interest income; (2) loan loss provision; and (3) non-interest (operating) expenses. In this section, we compare St. James Federal’s profitability levels to the Comparative Group and Supplemental Group levels, primarily based on these income/expense items.
As we discussed in Section I, St. James Federal’s net income and ROA levels have remained relatively consistent over the last five fiscal years. After peaking in fiscal 2012, the Association has realized declining income over the past two fiscal years ended in September 30, 2014. The recent decline was primarily driven by higher overhead expenses relative to the asset base and losses on the sale of real estate owned properties.
For the last twelve months ended December 31, 2014, St. James Federal generated a reported ROA and ROE of 0.36% and 3.55%, respectively. The Association’s core ROA and ROE were 0.49% and 4.84%, respectively. This compares to the Comparable Group’s median reported ROA of 0.66% (average ROA of 0.65%) and reported ROE of 3.97% (average ROE of 4.39+%). The Comparable Group’s median core ROA and core ROE was 0.55% (average core
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Table 4.6
Reported and Core Profitability Ratios
Company Name | ||||||||||||||||||
Comparable Group | Ticker | ROAA (%) | ROAE (%) | Core ROAA (%) | Core ROAE (%) | |||||||||||||
First Federal of Northern Michigan | FFNM | 0.77 | 7.05 | 0.56 | 4.80 | |||||||||||||
FS Bancorp, Inc. | FSBW | 1.01 | 7.17 | 1.01 | 7.22 | |||||||||||||
HMN Financial, Inc. | HMNF | 1.21 | 9.12 | 1.21 | 9.12 | |||||||||||||
La Porte Bancorp, Inc. | LPSB | 0.86 | 5.38 | 0.86 | 5.35 | |||||||||||||
Madison County Financial, Inc. | MCBK | 1.01 | 4.69 | 1.04 | 4.84 | |||||||||||||
Polonia Bancorp, Inc. | PBCP | 0.00 | 0.02 | 0.00 | 0.02 | |||||||||||||
Prudential Bancorp, Inc. | PBIP | 0.37 | 1.51 | 0.32 | 1.30 | |||||||||||||
United Community Bancorp | UCBA | 0.40 | 2.88 | 0.41 | 2.93 | |||||||||||||
Wolverine Bancorp, Inc. | WBKC | 0.55 | 2.84 | 0.55 | 2.84 | |||||||||||||
WVS Financial Corp. | WVFC | 0.33 | 3.25 | 0.34 | 3.29 | |||||||||||||
Average | 0.65 | 4.39 | 0.63 | 4.17 | ||||||||||||||
Median | 0.66 | 3.97 | 0.55 | 4.05 | ||||||||||||||
Maximum | 1.21 | 9.12 | 1.21 | 9.12 | ||||||||||||||
Minimum | 0.00 | 0.02 | 0.00 | 0.02 | ||||||||||||||
Supplemental Group | ||||||||||||||||||
CCSB Financial Corp. | CCFC | 0.11 | 0.97 | 0.11 | 0.97 | |||||||||||||
Community Investors Bancorp, Inc. | CIBN | 0.42 | 5.03 | 0.41 | 4.87 | |||||||||||||
First Niles Financial, Inc. | FNFI | 0.23 | 1.77 | 0.01 | 0.09 | |||||||||||||
Great American Bancorp, Inc. | GTPS | 0.42 | 4.45 | 0.29 | 3.05 | |||||||||||||
Hibernia Bancorp, Inc. | HIBE | 0.10 | 0.48 | 0.05 | 2.47 | |||||||||||||
Patriot Federal Bank | PFDB | (0.01 | ) | (0.08 | ) | (0.04 | ) | (0.42 | ) | |||||||||
Quarry City Savings and Loan Assoc | QRRY | 0.52 | 2.99 | 0.52 | 2.99 | |||||||||||||
Royal Financial, Inc. | RYFL | 0.48 | 2.47 | 0.27 | 1.39 | |||||||||||||
United-American Savings Bank | UASB | 0.69 | 8.39 | 0.70 | 8.56 | |||||||||||||
Versailles Financial Corporation | VERF | 0.19 | 0.83 | 0.20 | 0.91 | |||||||||||||
Average | 0.32 | 2.73 | 0.25 | 2.49 | ||||||||||||||
Median | 0.33 | 2.12 | 0.24 | 1.93 | ||||||||||||||
Maximum | 0.69 | 8.39 | 0.70 | 8.56 | ||||||||||||||
Minimum | (0.01 | ) | (0.08 | ) | (0.04 | ) | (0.42 | ) | ||||||||||
St James Federal Savings Loan Assoc. | 0.36 | 3.55 | 0.49 | 4.84 | ||||||||||||||
Variance to the Comparable Median | (0.30 | ) | (0.42 | ) | (0.06 | ) | 0.79 | |||||||||||
Variance to the Supplemental Median | 0.03 | 1.43 | 0.25 | 2.91 |
Source: SNL Financial
McAuliffe Financial, LLC Page 36 |
ROA of 0.63%) and 4.05% (average core ROE of 4.17%), respectively (see Table 4.6). The Supplemental Group had a median ROA of 0.33% and median ROE of 2.12% and their core ROA and core ROE ratios were 0.24% and 1.93%, respectively. On a pro forma basis, the Association’s core ROA and ROE are 0.35% and 2.41%, respectively.
Table 4.7 provides the key earnings components for St. James Federal, the Comparative Group and Supplemental Group. The Association generated a slightly higher net interest margin than the Comparative Group and Supplemental Group. The Association’s net interest margin of 3.64% compared to the Comparable Groups’ median net interest margin of 3.32% (average of 3.23%) and the Supplemental Groups’ median net interest margin of 3.48%. More than offsetting the higher net interest margin, the Association generated a lower level of non-interest income compared to the Comparable Group and Supplemental Group. The Association’s non-interest income of only 0.23% compared to a median of 0.65% (average of 0.81%) for the Comparable Group. The Supplemental Group generated a median non-interest income level of 0.37% (average of 0.51%).
The Association recorded a non-interest expense ratio higher than the Comparable Group but lower than the Supplemental Group. St. James Federal’s operating expense ratio was 3.10% versus the Comparable Group median and average ratios of 2.63% and 3.04%. Meanwhile, the Association and the Comparable Group had similar loan loss provision levels (0.06% versus median and average ratios of 0.06% and 0.04%) for the Comparable Group. Relative to the Supplemental Group, the Association’s operating expenses ratio compared favorably to the peer group median ratio of 3.31% (average of 3.19%) while the level of loan loss provision for the Association was similar to the Supplemental Group.
St. James Federal’s efficiency ratio of 84.56% is less favorable than the Comparable Group’s median and average ratios of 77.53% and 77.91%, respectively and slightly lower than the Supplemental Group ratios of 88.55% and 85.76%, respectively.
After the merger and stock offering, the Association’s operating expenses are not expected to decline materially as a result of economies attained through the elimination of duplicate expenses. Wells expects to keep all of the employees for at least one year subsequent to closing of the merger and no personnel efficiencies are expected. The savings realized from duplicative vendors is expected to be offset by expenses related to contract termination fees.
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Income generated from the offering proceeds that are raised and reinvested will be more than offset by expenses related to ESOP.
Table 4.7
Earnings Components
Company Name | Net Interest | Noninterest Income | Loan Loss Prov | Noninterest Expense | Efficiency | |||||||||||||||||
Comparable Group | Ticker | Margin | /Avg Assets | /Avg Assets | /Avg Assets | Ratio | ||||||||||||||||
First Federal of Northern Michigan | FFNM | 3.46 | 0.66 | 0.24 | 3.67 | 91.62 | ||||||||||||||||
FS Bancorp, Inc. | FSBW | 5.12 | 2.23 | 0.40 | 5.30 | 74.02 | ||||||||||||||||
HMN Financial, Inc. | HMNF | 3.48 | 1.19 | (1.15 | ) | 3.51 | 84.68 | |||||||||||||||
La Porte Bancorp, Inc. | LPSB | 3.17 | 0.47 | (0.03 | ) | 2.42 | 71.48 | |||||||||||||||
Madison County Financial, Inc. | MCBK | 3.80 | 0.64 | 0.47 | 2.52 | 57.19 | ||||||||||||||||
Polonia Bancorp, Inc. | PBCP | 2.88 | 1.58 | 0.07 | 4.23 | 97.91 | ||||||||||||||||
Prudential Bancorp, Inc. | PBIP | 2.65 | 0.17 | 0.06 | 2.24 | 81.04 | ||||||||||||||||
United Community Bancorp | UCBA | 2.58 | 0.68 | 0.05 | 2.53 | 82.03 | ||||||||||||||||
Wolverine Bancorp, Inc. | WBKC | 3.57 | 0.34 | 0.26 | 2.73 | 69.01 | ||||||||||||||||
WVS Financial Corp. | WVFC | 1.58 | 0.17 | 0.01 | 1.20 | 70.09 | ||||||||||||||||
Average | 3.23 | 0.81 | 0.04 | 3.04 | 77.91 | |||||||||||||||||
Median | 3.32 | 0.65 | 0.06 | 2.63 | 77.53 | |||||||||||||||||
Maximum | 5.12 | 2.23 | 0.47 | 5.30 | 97.91 | |||||||||||||||||
Minimum | 1.58 | 0.17 | (1.15 | ) | 1.20 | 57.19 | ||||||||||||||||
Supplemental Group | ||||||||||||||||||||||
CCSB Financial Corp. | CCFC | 3.55 | 0.58 | 0.00 | 3.69 | 95.69 | ||||||||||||||||
Community Investors Bancorp, Inc. | CIBN | 3.93 | 0.94 | 0.34 | 3.59 | 77.16 | ||||||||||||||||
First Niles Financial, Inc. | FNFI | 1.91 | 0.13 | 0.16 | 1.98 | 101.11 | ||||||||||||||||
Great American Bancorp, Inc. | GTPS | 3.06 | 1.71 | (0.01 | ) | 4.05 | 87.27 | |||||||||||||||
Hibernia Bancorp, Inc. | HIBE | 3.36 | 0.16 | 0.04 | 3.04 | 91.65 | ||||||||||||||||
Patriot Federal Bank | PFDB | 3.51 | 0.28 | 0.39 | 3.25 | 90.42 | ||||||||||||||||
Quarry City Savings and Loan Assoc | QRRY | 4.07 | 0.59 | 0.06 | 3.64 | 80.31 | ||||||||||||||||
Royal Financial, Inc. | RYFL | 4.14 | 0.17 | 0.09 | 3.36 | 83.24 | ||||||||||||||||
United-American Savings Bank | UASB | 3.45 | 0.46 | 0.11 | 2.57 | 60.93 | ||||||||||||||||
Versailles Financial Corporation | VERF | 3.18 | 0.02 | 0.00 | 2.76 | 89.84 | ||||||||||||||||
Average | 3.42 | 0.51 | 0.12 | 3.19 | 85.76 | |||||||||||||||||
Median | 3.48 | 0.37 | 0.07 | 3.31 | 88.55 | |||||||||||||||||
Maximum | 4.14 | 1.71 | 0.39 | 4.05 | 101.11 | |||||||||||||||||
Minimum | 1.91 | 0.02 | (0.01 | ) | 1.98 | 60.93 | ||||||||||||||||
St James Federal Savings Loan Assoc. | 3.64 | 0.23 | 0.06 | 3.10 | 84.56 | |||||||||||||||||
Variance to the Comparable Median | 0.32 | (0.42 | ) | (0.00 | ) | 0.47 | 7.03 | |||||||||||||||
Variance to the Supplemental Median | 0.16 | (0.14 | ) | (0.01 | ) | (0.21 | ) | (3.99 | ) |
Source: SNL Financial
Based on all the factors discussed above, we believe that a modest upward adjustment relative to the Comparative Group and Supplemental Group is warranted for Earnings Performance.
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Market Area Review
As we previously discussed, St. James Federal’s primary market area is concentrated in one county in Minnesota, Watonwan County. Watonwan County is largely rural with no major population centers. Historically, the County’s economy has been heavily concentrated in agricultural and farming related businesses. While Watonwan County has experienced a limited amount of industrial diversification during recent years, unemployment rates continue to remain stable and below national averages, however, growth opportunities remain minimal.
Table 4.8 compares certain demographic and economic data for Watonwan County with the county data of the Comparable Group and Supplemental Group thrifts. All of the Comparable Group thrifts have their deposit bases concentrated in multiple counties, though numerous operate in only a two county network. Like St. James Federal, seven of the Supplemental Group thrifts operate from within a single county, though the smallest county for the Supplement Group had a population of over 40,000 residents. The population in Watowan County was only 11,209 in 2014. Watonwan County experienced a population decline of 0.2% between 2010 and 2014 versus a median growth rate of 0.5% for the Comparable Group’s and 0.9% for the Supplemental Group primary market areas. Watonwan County’s latest median household income of approximately $52,945 compared similarly to the Comparable Group median household income of $52,191 and higher than the $48,744 for the Supplemental Group. The median household income growth expected for Watonwan County between 2014 and 2019 is 10.47% versus 5.72% and 5.62% growth in Comparable Group and Supplemental Group respective markets. As of December 2014, the unemployment rate in Watonwan County was 4.7% compared to the median unemployment rate of 5.4% in the Comparable Group’s market area and 4.9% in the Supplemental Group market area.
Based on the demographic and economic data discussed herein and given Watonwan County’s small population base and limited growth opportunities, on balance, we believe that a moderate discount downward is warranted for market area for both the Comparative Group and Supplemental Group.
Cash Dividends
Thrift institutions have been paying cash dividends as a key component of their capital management strategies. In particular, if a thrift has a strong capital position and does not plan
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Table 4.8
Demographic and Economic Data
Comparable Group Companies
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First Federal of Northern Michigan Bancorp, Inc. (NASDAQ: FFNM)
Demographic Profile (First Federal of Northern Michigan Bancorp, Inc.)
Ownership: Current
Market: County
Michigan (MI) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Alpena | 1 | 3 | 162,998 | 46.66 | 70.46 | 70.46 | 29,008 | (1.99 | ) | (1.96 | ) | 37,462 | 4.70 | 5.6 | ||||||||||||||||||||||||||||||||||
Cheboygan | 4 | 1 | 17,192 | 5.99 | 7.43 | 7.43 | 25,609 | (2.08 | ) | (2.11 | ) | 36,562 | (0.67 | ) | 12.0 | |||||||||||||||||||||||||||||||||
Emmet | 9 | 1 | 12,715 | 1.61 | 5.50 | 5.50 | 33,054 | 1.10 | 1.06 | 50,747 | 6.24 | 7.3 | ||||||||||||||||||||||||||||||||||||
Iosco | 5 | 1 | 12,633 | 4.61 | 5.46 | 5.46 | 25,041 | (3.27 | ) | (3.15 | ) | 35,538 | 2.53 | 7.8 | ||||||||||||||||||||||||||||||||||
Otsego | 5 | 1 | 9,114 | 2.39 | 3.94 | 3.94 | 23,879 | (1.18 | ) | (1.34 | ) | 47,743 | 12.71 | 6.4 | ||||||||||||||||||||||||||||||||||
Montmorency | 3 | 1 | 8,451 | 10.05 | 3.65 | 3.65 | 9,288 | (4.88 | ) | (4.83 | ) | 35,468 | 6.71 | 9.8 | ||||||||||||||||||||||||||||||||||
Oscoda | 3 | 1 | 8,239 | 12.62 | 3.56 | 3.56 | 8,519 | (1.40 | ) | (1.69 | ) | 33,831 | 4.25 | 8.9 | ||||||||||||||||||||||||||||||||||
MI Totals | 9 | 231,342 | 100.00 | 100.00 | 154,398 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Michigan Franchise | (1.95 | ) | (1.94 | ) | 38,223 | 4.64 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Michigan | 9,882,647 | (0.01 | ) | (0.03 | ) | 46,476 | 2.19 | 5.6 | ||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
FS Bancorp, Inc. (NASDAQ: FSBW)
Demographic Profile (FS Bancorp, Inc.)
Ownership: Current
Market: County
Washington (WA) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Snohomish | 11 | 4 | 207,920 | 2.30 | 57.40 | 57.40 | 744,778 | 4.41 | 5.50 | 65,286 | 3.30 | 4.5 | ||||||||||||||||||||||||||||||||||||
King | 27 | 2 | 93,690 | 0.15 | 25.86 | 25.86 | 2,034,524 | 5.35 | 6.28 | 70,485 | 7.02 | 4.1 | ||||||||||||||||||||||||||||||||||||
Pierce | 22 | 1 | 36,919 | 0.41 | 10.19 | 10.19 | 827,385 | 4.04 | 5.18 | 57,536 | 5.26 | 7.2 | ||||||||||||||||||||||||||||||||||||
Kitsap | 13 | 1 | 23,705 | 0.93 | 6.54 | 6.54 | 258,926 | 3.10 | 4.37 | 62,135 | 8.53 | 6.2 | ||||||||||||||||||||||||||||||||||||
WA Totals | 8 | 362,234 | 100.00 | 100.00 | 3,865,613 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Washington Franchise | 4.53 | 5.59 | 65,635 | 4.81 | ||||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Washington | 7,005,779 | 4.18 | 5.28 | 58,935 | 6.09 | 6.2 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
McAuliffe Financial, LLC Page 41 |
Table 4.8 (cont.)
Demographic and Economic Data
Comparable Group Companies
HMN Financial, Inc. (NASDAQ: HMNF)
Demographic Profile (HMN Financial, Inc.)
Ownership: Current
Market: County
Iowa (IA) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Marshall | 9 | 1 | 43,210 | 4.42 | 100.00 | 8.22 | 40,890 | 0.60 | 0.92 | 52,899 | 16.48 | 6.1 | ||||||||||||||||||||||||||||||||||||
IA Totals | 1 | 43,210 | 100.00 | 8.22 | 40,890 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Iowa Franchise | 0.60 | 0.92 | 52,899 | 16.48 | ||||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Iowa | 3,089,088 | 1.40 | 1.73 | 52,827 | 10.13 | 4.2 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
Minnesota (MN) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Olmsted | 5 | 4 | 256,694 | 7.28 | 53.21 | 48.83 | 148,682 | 3.07 | 3.64 | 67,899 | 7.72 | 2.9 | ||||||||||||||||||||||||||||||||||||
Freeborn | 6 | 1 | 57,998 | 9.87 | 12.02 | 11.03 | 31,079 | (0.56 | ) | 0.18 | 46,093 | 7.49 | 4.1 | |||||||||||||||||||||||||||||||||||
Mower | 5 | 1 | 53,065 | 7.91 | 11.00 | 10.09 | 39,636 | 1.21 | 1.93 | 46,950 | 6.69 | 3.0 | ||||||||||||||||||||||||||||||||||||
Fillmore | 5 | 1 | 51,735 | 11.11 | 10.72 | 9.84 | 20,923 | 0.27 | 1.01 | 51,483 | 11.33 | 4.1 | ||||||||||||||||||||||||||||||||||||
Dakota | 29 | 1 | 21,159 | 0.37 | 4.39 | 4.03 | 409,226 | 2.68 | 3.30 | 69,299 | 0.82 | 3.2 | ||||||||||||||||||||||||||||||||||||
Houston | 5 | 1 | 20,952 | 6.29 | 4.34 | 3.99 | 18,787 | (1.26 | ) | (0.53 | ) | 57,489 | 11.38 | 4.4 | ||||||||||||||||||||||||||||||||||
Winona | 7 | 1 | 20,847 | 2.12 | 4.32 | 3.97 | 51,692 | 0.45 | 1.18 | 44,540 | 3.35 | 3.1 | ||||||||||||||||||||||||||||||||||||
MN Totals | 10 | 482,450 | 100.00 | 91.78 | 720,025 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Minnesota Franchise | 1.81 | 2.45 | 59,813 | 7.64 | ||||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Minnesota | 5,424,948 | 2.28 | 2.90 | 59,127 | 5.47 | 3.7 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
McAuliffe Financial, LLC Page 42 |
Table 4.8 (cont.)
Demographic and Economic Data
Comparable Group Companies
McAuliffe Financial, LLC Page 43 |
La Porte Bancorp, Inc. (NASDAQ: LPSB)
Demographic Profile (La Porte Bancorp, Inc.)
Ownership: Current
Market: County
Indiana (IN) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
LaPorte | 2 | 6 | 313,358 | 19.53 | 87.17 | 87.17 | 111,097 | (0.33 | ) | 0.14 | 47,072 | 3.24 | 8.0 | |||||||||||||||||||||||||||||||||||
Porter | 9 | 1 | 46,126 | 1.66 | 12.83 | 12.83 | 166,118 | 1.08 | 1.33 | 62,376 | 6.71 | 6.6 | ||||||||||||||||||||||||||||||||||||
IN Totals | 7 | 359,484 | 100.00 | 100.00 | 277,215 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Indiana Franchise | (0.15 | ) | 0.29 | 49,036 | 3.69 | |||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Indiana | 6,567,159 | 1.29 | 1.62 | 47,121 | 2.64 | 5.8 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
Madison County Financial, Inc. (NASDAQ: MCBK)
Demographic Profile (Madison County Financial, Inc.)
Ownership: Current
Market: County
Nebraska (NE) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Madison | 2 | 2 | 149,300 | 10.26 | 66.86 | 66.86 | 35,121 | 0.70 | 1.63 | 49,528 | 15.29 | 2.6 | ||||||||||||||||||||||||||||||||||||
Boone | 2 | 1 | 61,798 | 23.89 | 27.68 | 27.68 | 5,403 | (1.85 | ) | (0.30 | ) | 45,890 | 21.36 | 2.2 | ||||||||||||||||||||||||||||||||||
Pierce | 4 | 1 | 12,196 | 6.14 | 5.46 | 5.46 | 7,112 | (2.12 | ) | (1.04 | ) | 57,380 | 15.85 | 2.9 | ||||||||||||||||||||||||||||||||||
Cedar | 8 | 1 | 0 | 0.00 | 0.00 | 0.00 | 8,683 | (1.91 | ) | (0.86 | ) | 48,839 | 16.25 | 2.2 | ||||||||||||||||||||||||||||||||||
NE Totals | 5 | 223,294 | 100.00 | 100.00 | 56,319 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Nebraska Franchise | (0.16 | ) | 0.95 | 48,950 | 17.00 | |||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Nebraska | 1,874,170 | 2.62 | 3.35 | 53,345 | 10.93 | 2.9 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
McAuliffe Financial, LLC Page 44 |
Table 4.8 (cont.)
Demographic and Economic Data
Comparable Group Companies
Polonia Bancorp, Inc. (NASDAQ: PBCP)
Demographic Profile (Polonia Bancorp, Inc.)
Ownership: Current
Market: County
Pennsylvania (PA) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Philadelphia | 23 | 4 | 118,248 | 0.29 | 58.21 | 58.21 | 1,560,706 | 2.27 | 2.35 | 35,735 | 7.07 | 6.2 | ||||||||||||||||||||||||||||||||||||
Montgomery | 28 | 1 | 84,894 | 0.34 | 41.79 | 41.79 | 813,379 | 1.69 | 1.80 | 78,454 | 7.17 | 3.8 | ||||||||||||||||||||||||||||||||||||
PA Totals | 5 | 203,142 | 100.00 | 100.00 | 2,374,085 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Pennsylvania Franchise | 2.03 | 2.12 | 53,587 | 7.11 | ||||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Pennsylvania | 12,791,303 | 0.70 | 0.84 | 51,961 | 7.89 | 4.6 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
Prudential Bancorp, Inc. (NASDAQ: PBIP)
Demographic Profile (Prudential Bancorp, Inc.)
Ownership: Current
Market: County
Pennsylvania (PA) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Philadelphia | 13 | 6 | 373,153 | 0.91 | 90.73 | 90.73 | 1,560,706 | 2.27 | 2.35 | 35,735 | 7.07 | 6.2 | ||||||||||||||||||||||||||||||||||||
Delaware | 24 | 1 | 38,117 | 0.32 | 9.27 | 9.27 | 562,633 | 0.65 | 0.90 | 61,896 | 4.37 | 4.5 | ||||||||||||||||||||||||||||||||||||
PA Totals | 7 | 411,270 | 100.00 | 100.00 | 2,123,339 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Pennsylvania Franchise | 2.12 | 2.22 | 38,160 | 6.82 | ||||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Pennsylvania | 12,791,303 | 0.70 | 0.84 | 51,961 | 7.89 | 4.6 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
McAuliffe Financial, LLC Page 45 |
Table 4.8 (cont.)
Demographic and Economic Data
Comparable Group Companies
McAuliffe Financial, LLC Page 46 |
United Community Bancorp (NASDAQ: UCBA)
Demographic Profile (United Community Bancorp)
Ownership: Current
Market: County
Indiana (IN) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Dearborn | 1 | 5 | 370,350 | 39.45 | 83.33 | 83.33 | 49,579 | (0.94 | ) | (0.64 | ) | 57,529 | 1.21 | 5.3 | ||||||||||||||||||||||||||||||||||
Ripley | 5 | 3 | 74,062 | 10.56 | 16.67 | 16.67 | 28,339 | (1.66 | ) | (1.41 | ) | 49,062 | 7.93 | 6.5 | ||||||||||||||||||||||||||||||||||
IN Totals | 8 | 444,412 | 100.00 | 100.00 | 77,918 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Indiana Franchise | (1.06 | ) | (0.77 | ) | 56,118 | 2.33 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Indiana | 6,567,159 | 1.29 | 1.62 | 47,121 | 2.64 | 5.8 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
Wolverine Bancorp, Inc. (NASDAQ: WBKC)
Demographic Profile (Wolverine Bancorp, Inc.)
Ownership: Current
Market: County
Michigan (MI) | |||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | |||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | ||||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | |||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | ||||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | |||||||||||||||||||||||||||||||||||||
Midland | 2 | 3 | 208,657 | 16.35 | 92.26 | 92.26 | 83,692 | 0.08 | (0.16 | ) | 50,984 | 1.27 | 4.4 | ||||||||||||||||||||||||||||||||||||
Saginaw | 15 | 1 | 17,499 | 0.89 | 7.74 | 7.74 | 197,163 | (1.50 | ) | (1.51 | ) | 40,886 | 1.90 | 5.2 | |||||||||||||||||||||||||||||||||||
MI Totals | 4 | 226,156 | 100.00 | 100.00 | 280,855 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Michigan Franchise | (0.05 | ) | (0.26 | ) | 50,203 | 1.31 | |||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Michigan | 9,882,647 | (0.01 | ) | (0.03 | ) | 46,476 | 2.19 | 5.6 | |||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
McAuliffe Financial, LLC Page 47 |
Table 4.8 (cont.)
Demographic and Economic Data
Comparable Group Companies
WVS Financial Corp. (NASDAQ: WVFC)
Demographic Profile (WVS Financial Corp.)
Ownership: Current
Market: County
Pennsylvania (PA) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Allegheny | 20 | 4 | 118,104 | 0.15 | 82.28 | 82.28 | 1,232,037 | 0.71 | 0.86 | 51,121 | 9.29 | 4.1 | ||||||||||||||||||||||||||||||||||||
Butler | 16 | 2 | 25,436 | 0.67 | 17.72 | 17.72 | 185,435 | 0.86 | 0.97 | 59,606 | 9.43 | 4.1 | ||||||||||||||||||||||||||||||||||||
PA Totals | 6 | 143,540 | 100.00 | 100.00 | 1,417,472 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Pennsylvania Franchise | 0.74 | 0.88 | 52,625 | 9.31 | ||||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Pennsylvania | 12,791,303 | 0.70 | 0.84 | 51,961 | 7.89 | 4.6 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
St James Federal Savings and Loan Association
Demographic Profile (St James Federal Savings and Loan Association)
Ownership: Current
Market: County
Minnesota (MN) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Watonwan | 6 | 1 | 24,277 | 7.17 | 100.00 | 100.00 | 11,209 | (0.02 | ) | 0.71 | 52,945 | 10.47 | 4.7 | |||||||||||||||||||||||||||||||||||
MN Totals | 1 | 24,277 | 100.00 | 100.00 | 11,209 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Minnesota Franchise | (0.02 | ) | 0.71 | 52,945 | 10.47 | |||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Minnesota | 5,424,948 | 2.28 | 2.90 | 59,127 | 5.47 | 3.7 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
McAuliffe Financial, LLC Page 48 |
Table 4.8 (cont.)
Demographic and Economic Data
Supplemental Group Companies
CCSB Financial Corp. (OTC Pink: CCFC)
Demographic Profile (CCSB Financial Corp.)
Ownership: Current
Market: County
Missouri (MO) | |||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | |||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | ||||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | |||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | ||||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | |||||||||||||||||||||||||||||||||||||
Clay | 14 | 3 | 76,492 | 2.35 | 100.00 | 100.00 | 231,165 | 4.16 | 4.08 | 64,853 | 11.81 | 4.6 | |||||||||||||||||||||||||||||||||||||
MO Totals | 3 | 76,492 | 100.00 | 100.00 | 231,165 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Missouri Franchise | 4.16 | 4.08 | 64,853 | 11.81 | |||||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Missouri | 6,039,326 | 0.84 | 1.04 | 47,043 | 5.15 | 5.3 | |||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
Community Investors Bancorp, Inc. (OTC Pink: CIBN)
Demographic Profile (Community Investors Bancorp, Inc.)
Ownership: Current
Market: County
Ohio (OH) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Crawford | 4 | 4 | 91,106 | 12.70 | 94.74 | 94.74 | 42,177 | (3.67 | ) | (3.73 | ) | 42,580 | 5.00 | 5.0 | ||||||||||||||||||||||||||||||||||
Union | 8 | 1 | 5,054 | 0.84 | 5.26 | 5.26 | 52,584 | 0.54 | (0.02 | ) | 69,879 | 7.52 | 3.9 | |||||||||||||||||||||||||||||||||||
OH Totals | 5 | 96,160 | 100.00 | 100.00 | 94,761 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Ohio Franchise | (3.45 | ) | (3.54 | ) | 44,015 | 5.13 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Ohio | 11,542,573 | 0.05 | 0.02 | 46,760 | 3.57 | 4.7 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
McAuliffe Financial, LLC Page 49 |
Table 4.8 (cont.)
Demographic and Economic Data
Supplemental Group Companies
McAuliffe Financial, LLC Page 50 |
First Niles Financial, Inc. (OTCQB: FNFI)
Demographic Profile (First Niles Financial, Inc.)
Ownership: Current
Market: County
Ohio (OH) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Trumbull | 10 | 1 | 61,914 | 2.28 | 100.00 | 100.00 | 205,216 | (2.42 | ) | (2.48 | ) | 42,259 | 4.97 | 5.1 | ||||||||||||||||||||||||||||||||||
OH Totals | 1 | 61,914 | 100.00 | 100.00 | 205,216 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Ohio Franchise | (2.42 | ) | (2.48 | ) | 42,259 | 4.97 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Ohio | 11,542,573 | 0.05 | 0.02 | 46,760 | 3.57 | 4.7 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
Great American Bancorp, Inc. (OTCQB: GTPS)
Demographic Profile (Great American Bancorp, Inc.)
Ownership: Current
Market: County
Illinois (IL) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Champaign | 6 | 2 | 150,143 | 3.59 | 100.00 | 100.00 | 204,540 | 1.72 | 1.76 | 41,014 | 0.65 | 5.5 | ||||||||||||||||||||||||||||||||||||
IL Totals | 2 | 150,143 | 100.00 | 100.00 | 204,540 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Illinois Franchise | 1.72 | 1.76 | 41,014 | 0.65 | ||||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Illinois | 12,894,382 | 0.50 | 0.59 | 54,808 | 2.89 | 5.7 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
McAuliffe Financial, LLC Page 51 |
Table 4.8 (cont.)
Demographic and Economic Data
Supplemental Group Companies
Hibernia Bancorp, Inc. (OTCQB: HIBE)
Demographic Profile (Hibernia Bancorp, Inc.)
Ownership: Current
Market: County
Louisiana (LA) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Orleans | 13 | 2 | 61,468 | 0.38 | 74.87 | 74.87 | 384,185 | 11.74 | 9.97 | 34,076 | (3.80 | ) | 7.1 | |||||||||||||||||||||||||||||||||||
Jefferson | 22 | 1 | 20,629 | 0.21 | 25.13 | 25.13 | 433,916 | 0.32 | 1.19 | 44,273 | (0.76 | ) | 5.8 | |||||||||||||||||||||||||||||||||||
LA Totals | 3 | 82,097 | 100.00 | 100.00 | 818,101 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Louisiana Franchise | 8.87 | 7.76 | 36,638 | (3.04 | ) | |||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Louisiana | 4,642,398 | 2.40 | 3.04 | 44,055 | 5.09 | 6.2 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
Patriot Federal Bank (OTCQB: PFDB)
Demographic Profile (Patriot Federal Bank)
Ownership: Current
Market: County
New York (NY) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Fulton | 4 | 1 | 49,854 | 7.52 | 53.16 | 53.16 | 54,450 | (1.95 | ) | (1.52 | ) | 47,075 | 9.87 | 6.7 | ||||||||||||||||||||||||||||||||||
Montgomery | 4 | 2 | 43,924 | 6.60 | 46.84 | 46.84 | 49,786 | (0.86 | ) | (0.29 | ) | 46,549 | 10.97 | 6.8 | ||||||||||||||||||||||||||||||||||
NY Totals | 3 | 93,778 | 100.00 | 100.00 | 104,236 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: New York Franchise | (1.44 | ) | (0.94 | ) | 46,829 | 10.38 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of New York | 19,674,630 | 1.53 | 1.91 | 57,619 | 6.61 | 5.7 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
McAuliffe Financial, LLC Page 52 |
Table 4.8 (cont.)
Demographic and Economic Data
Supplemental Group Companies
Quarry City Savings and Loan Association (OTCQB: QRRY)
Demographic Profile (Quarry City Savings and Loan Association)
Ownership: Current
Market: County
Missouri (MO) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Johnson | 6 | 1 | 37,041 | 6.18 | 100.00 | 100.00 | 55,653 | 5.81 | 5.55 | 51,563 | 15.42 | 4.6 | ||||||||||||||||||||||||||||||||||||
MO Totals | 1 | 37,041 | 100.00 | 100.00 | 55,653 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Missouri Franchise | 5.81 | 5.55 | 51,563 | 15.42 | ||||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Missouri | 6,039,326 | 0.84 | 1.04 | 47,043 | 5.15 | 5.3 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
Royal Financial, Inc. (OTCQX: RYFL)
Demographic Profile (Royal Financial, Inc.)
Ownership: Current
Market: County
Illinois (IL) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Cook | 93 | 3 | 83,056 | 0.03 | 100.00 | 100.00 | 5,253,507 | 1.13 | 1.23 | 50,676 | (0.31 | ) | 5.6 | |||||||||||||||||||||||||||||||||||
IL Totals | 3 | 83,056 | 100.00 | 100.00 | 5,253,507 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Illinois Franchise | 1.13 | 1.23 | 50,676 | (0.31 | ) | |||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Illinois | 12,894,382 | 0.50 | 0.59 | 54,808 | 2.89 | 5.7 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
McAuliffe Financial, LLC Page 53 |
Table 4.8 (cont.)
Demographic and Economic Data
Supplemental Group Companies
United-American Savings Bank (OTCQB: UASB)
Demographic Profile (United-American Savings Bank)
Ownership: Current
Market: County
Pennsylvania (PA) | |||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | |||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | ||||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | |||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | ||||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | |||||||||||||||||||||||||||||||||||||
Allegheny | 23 | 1 | 73,001 | 0.09 | 100.00 | 100.00 | 1,232,037 | 0.71 | 0.86 | 51,121 | 9.29 | 4.1 | |||||||||||||||||||||||||||||||||||||
PA Totals | 1 | 73,001 | 100.00 | 100.00 | 1,232,037 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Pennsylvania Franchise | 0.71 | 0.86 | 51,121 | 9.29 | |||||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Pennsylvania | 12,791,303 | 0.70 | 0.84 | 51,961 | 7.89 | 4.6 | |||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
Versailles Financial Corporation (OTC Pink: VERF)
Demographic Profile (Versailles Financial Corporation)
Ownership: Current
Market: County
Ohio (OH) | ||||||||||||||||||||||||||||||||||||||||||||||||
Projected | Median | Projected | ||||||||||||||||||||||||||||||||||||||||||||||
Company | Deposit | Percent of | Percent of | Total | Population | Population | HH | HH Income | Unemploy | |||||||||||||||||||||||||||||||||||||||
Number | Deposits | Market | State | National | Population | Change | Change | Income | Change | ment Rate | ||||||||||||||||||||||||||||||||||||||
Market | of | in Market | Share | Franchise | Franchise | 2014 | 2010-2014 | 2014-2019 | 2014 | 2014-2019 | Dec. 2014 | |||||||||||||||||||||||||||||||||||||
County | Rank | Branches | ($000) | (%) | (%) | (%) | (Actual) | (%) | (%) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
Darke | 10 | 1 | 34,742 | 3.35 | 100.00 | 100.00 | 52,208 | (1.42 | ) | (1.37 | ) | 45,207 | 4.82 | 3.9 | ||||||||||||||||||||||||||||||||||
OH Totals | 1 | 34,742 | 100.00 | 100.00 | 52,208 | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average: Ohio Franchise | (1.42 | ) | (1.37 | ) | 45,207 | 4.82 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: Entire State of Ohio | 11,542,573 | 0.05 | 0.02 | 46,760 | 3.57 | 4.7 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate: National | 317,199,353 | 2.74 | 3.50 | 51,579 | 4.58 | 5.6 |
McAuliffe Financial, LLC Page 54 |
Weighted Average is calculated as the sum of (Percent of State/National Franchise * demographic item) within each market. Banks, Thrifts, and Savings Banks include |
Note: National Franchise does not include deposits held in U.S. Territories and other non-states, excluding District of Columbia. |
Demographic data is provided by Nielsen based primarily on US Census data. For non-census year data, Nielsen uses samples and projections to estimate thedemographic data. SNL performs calculations on the underlying data provided by Nielsen for some of the data presented on this page. For more information onNielsen's methodology, see https://www.snl.com/help/Docs/Nielsen_Demographic_Update_2014_Methodology.pdf |
Source: SNL Financial.
McAuliffe Financial, LLC Page 55 |
significant asset growth, at least a moderate level of cash dividends will typically be paid to stockholders.
As shown in Table 4.9, seven of the ten Comparable Group thrifts are currently paying a cash dividend. The group’s median dividend yield is 1.31% and its payouts ratio is 27.2%. Four of the thrifts in the Supplemental Group are paying dividends with a median dividend yield of 2.05%. Just under 75% of all publicly traded thrifts are paying cash dividends with an median yield of 1.56%.
Table 4.9
Dividend Data
Company Name | Dividend | |||||||||
Comparable Group | Ticker | Yield | LTM Dividend Payout Ratio (%) | |||||||
First Federal of Northern Michigan | FFNM | 1.47 | 15.38 | |||||||
FS Bancorp, Inc. | FSBW | 1.24 | 15.79 | |||||||
HMN Financial, Inc. | HMNF | 0.00 | NM | |||||||
La Porte Bancorp, Inc. | LPSB | 1.27 | 19.75 | |||||||
Madison County Financial, Inc. | MCBK | 1.19 | 23.53 | |||||||
Polonia Bancorp, Inc. | PBCP | NA | NM | |||||||
Prudential Bancorp, Inc. | PBIP | 0.98 | 45.00 | |||||||
United Community Bancorp | UCBA | 1.97 | 54.55 | |||||||
Wolverine Bancorp, Inc. | WBKC | NA | 74.07 | |||||||
WVS Financial Corp. | WVFC | 1.45 | 30.77 | |||||||
Average | 1.20 | 34.86 | ||||||||
Median | 1.26 | 27.15 | ||||||||
Maximum | 1.97 | 74.07 | ||||||||
Minimum | 0.00 | 15.38 | ||||||||
Supplemental Group | ||||||||||
CCSB Financial Corp. | CCFC | NA | NM | |||||||
Community Investors Bancorp, Inc. | CIBN | 2.05 | 29.41 | |||||||
First Niles Financial, Inc. | FNFI | 2.19 | 75.00 | |||||||
Great American Bancorp, Inc. | GTPS | 2.15 | 26.92 | |||||||
Hibernia Bancorp, Inc. | HIBE | NA | NM | |||||||
Patriot Federal Bank | PFDB | 0.00 | NA | |||||||
Quarry City Savings and Loan Assoc | QRRY | NA | NM | |||||||
Royal Financial, Inc. | RYFL | NA | NM | |||||||
United-American Savings Bank | UASB | 1.50 | 15.42 | |||||||
Versailles Financial Corporation | VERF | NA | NM | |||||||
Average | 1.58 | 36.69 | ||||||||
Median | 2.05 | 28.17 | ||||||||
Maximum | 2.19 | 75.00 | ||||||||
Minimum | 0.00 | 15.42 |
Source: SNL Securities
McAuliffe Financial, LLC Page 56 |
St. James Federal’s merger with Well Financial will enable the members who purchase shares in the offering to participate in Wells Financial’s dividend program. Currently, Wells Financial is paying an annualized dividend of $0.60 per share, reflecting a dividend yield of 2.33% at current prices. As a result, we believe that no adjustment is warranted for this factor relative to either the Comparative Group or Supplemental Group.
Liquidity of the Issue
The Comparable Group contains ten companies that trade on the Nasdaq system. Wells Financial currently trades on the OTC Bulletin Board. Given the size of the stock offering, the level of market capitalization of Wells Financial post offering is expected to be approximately $22 million. Therefore, it can be expected that the common stock will continue to have a limited degree of trading activity and liquidity. The average daily trading volume of Wells Financial over the past year is only approximately 350 shares. The Comparative Group has experienced varying degrees of trading volume and, therefore, liquidity in their stocks. The market capitalization of the ten Comparable Group thrifts range from $20.3 million to $113.7 million and the median and average capitalization for the group is $55.1 million and $55.0 million, respectively (see Table 4.10). Therefore, Well Financial’s stock can be expected to have a modestly lower level of liquidity than the Comparative Group.
The median and average capitalization for the Supplemental Group peers was $8.1 million and $9.9 million, respectively. If St. James Federal was pursuing a standard conversion and its’ stock was independent of Wells Financial, the Association’s market capitalization would be less than that of the Supplemental Group. However, by merging into Wells Financial, the capitalization of the combined entity would be slightly larger than that of the Supplemental Group. Wells Financials’ initial public offering was in 1995 and the daily trading activity has been meager since the early days of the offering. An independent offering of St. James Federal’s stock would likely reflect some initial flurry of trading activity but would likely slow as the offering became more seasoned.
Based on the foregoing, we believe that a slight downward adjustment to the pro forma market value of St. James Federal relative to the Comparable Group is warranted. Relative to the Supplemental Group, we believe there is no adjustment necessary as trading activity and liquidity are expected to be similar.
McAuliffe Financial, LLC Page 57 |
Table 4.10
Market Capitalization and Market Data
Company Name | Market | Stock | High | Low | Book Value | Tang. BV | ||||||||||||||||||||
Comparable Group | Ticker | Value ($M) | Price | Price | Price | Per Share | Per Share | |||||||||||||||||||
First Federal of Northern Michigan | FFNM | 20.31 | 5.45 | 6.30 | 4.69 | 8.04 | 7.68 | |||||||||||||||||||
FS Bancorp, Inc. | FSBW | 62.64 | 19.36 | 19.49 | 15.50 | 20.35 | 20.35 | |||||||||||||||||||
HMN Financial, Inc. | HMNF | 53.69 | 12.01 | 13.95 | 8.94 | 14.77 | 14.77 | |||||||||||||||||||
La Porte Bancorp, Inc. | LPSB | 71.37 | 12.58 | 13.15 | 10.63 | 14.52 | 13.00 | |||||||||||||||||||
Madison County Financial, Inc. | MCBK | 60.95 | 20.10 | 23.00 | 16.96 | 20.35 | 20.01 | |||||||||||||||||||
Polonia Bancorp, Inc. | PBCP | 34.69 | 10.40 | 10.91 | 9.25 | 11.64 | 11.64 | |||||||||||||||||||
Prudential Bancorp, Inc. | PBIP | 113.69 | 12.22 | 12.50 | 10.45 | 13.68 | 13.68 | |||||||||||||||||||
United Community Bancorp | UCBA | 56.36 | 12.16 | 12.58 | 10.45 | 15.27 | NA | |||||||||||||||||||
Wolverine Bancorp, Inc. | WBKC | 53.87 | 23.75 | 24.10 | 21.45 | 27.05 | 27.05 | |||||||||||||||||||
WVS Financial Corp. | WVFC | 22.60 | �� | 11.02 | 12.50 | 10.75 | 15.52 | 15.52 | ||||||||||||||||||
Average | 55.02 | 13.90 | 14.85 | 11.91 | 16.12 | 15.97 | ||||||||||||||||||||
Median | 55.11 | 12.19 | 12.86 | 10.54 | 15.02 | 14.77 | ||||||||||||||||||||
Maximum | 113.69 | 23.75 | 24.10 | 21.45 | 27.05 | 27.05 | ||||||||||||||||||||
Minimum | 20.31 | 5.45 | 6.30 | 4.69 | 8.04 | 7.68 | ||||||||||||||||||||
Supplemental Group | ||||||||||||||||||||||||||
CCSB Financial Corp. | CCFC | 5.74 | 7.35 | 8.25 | 6.85 | 13.44 | 13.44 | |||||||||||||||||||
Community Investors Bancorp, Inc. | CIBN | 7.75 | 9.74 | 10.70 | 8.30 | 13.84 | 13.84 | |||||||||||||||||||
First Niles Financial, Inc. | FNFI | 10.30 | 9.15 | 9.95 | 6.20 | 10.51 | 10.51 | |||||||||||||||||||
Great American Bancorp, Inc. | GTPS | 12.22 | 26.00 | 30.00 | 22.00 | 35.00 | 33.97 | |||||||||||||||||||
Hibernia Bancorp, Inc. | HIBE | 16.62 | 17.40 | 17.85 | 17.40 | 22.90 | 22.90 | |||||||||||||||||||
Patriot Federal Bank | PFDB | 8.49 | 5.80 | 7.25 | 5.02 | 7.82 | 7.70 | |||||||||||||||||||
Quarry City Savings and Loan Assoc | QRRY | 4.85 | 11.90 | 11.90 | 10.20 | 19.42 | 19.42 | |||||||||||||||||||
Royal Financial, Inc. | RYFL | 20.06 | 8.00 | 8.20 | 7.25 | 10.32 | 10.32 | |||||||||||||||||||
United-American Savings Bank | UASB | 6.19 | 20.00 | 22.00 | 18.65 | 23.70 | 23.70 | |||||||||||||||||||
Versailles Financial Corporation | VERF | 6.95 | 15.75 | 17.99 | 14.99 | 28.36 | 28.36 | |||||||||||||||||||
Average | 9.92 | 13.11 | 14.41 | 11.69 | 18.53 | 18.42 | ||||||||||||||||||||
Median | 8.12 | 10.82 | 11.30 | 9.25 | 16.63 | 16.63 | ||||||||||||||||||||
Maximum | 20.06 | 26.00 | 30.00 | 22.00 | 35.00 | 33.97 | ||||||||||||||||||||
Minimum | 4.85 | 5.80 | 7.25 | 5.02 | 7.82 | 7.70 |
Source: SNL Financial
Management
The entire organization of St. James Federal includes 8 employees and 5 board members. The Association’s management team is small, but it appears to possess the experience and expertise in the key lending and financial service areas that are the focus of the Association’s operations. The financial results of the Association suggest that the Board of Directors and senior management have been effective in implementing an overall operating strategy that can be well managed by the current organizational structure. The Association has indicated that there are currently no senior management vacancies.
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The relatively small size of St. James Federal requires that multiple lines responsibilities be concentrated in a small handful of people. St. James Federal’s management appears to have established a favorable reputation for the Association in the communities in which it operates. Given the small market and limited growth opportunities, there has not been a need to significantly expand the staff size. However, any significant expansion in lending or depositor services will likely require that the size and experience of staff be expanded.
The Comparable Group thrifts, to vary degrees, have undertaken expansion of their management teams and support staff as part of their expansion and diversification strategies, many of which have had these strategies in place for some time. Most savings institutions have been confronted with the need to expand and restructure their management team in response to significant changes in financial, regulatory and operational challenges.
On balance, we believe that no specific adjustment to St. James Federal’s pro forma market value relative to the Comparable Group or Supplemental Group is warranted for managerial factors.
Marketing of the Issue
Marketing of the issue takes into consideration: (1) trends and conditions in the overall thrift market, as well as (2) the anticipated impact of the new issue market for thrift conversions on subscription interest for stock offered as part of the St. James conversion merger.
Beginning in 2012, thrift stocks began to show gradual recovery from the financial recession and banking crisis that began in 2008. Thrifts, as a whole, were beginning to see some stabilization and recovery in real estate values and non-performing assets appeared to have reached their peak. Some thrift institutions were able to raise new capital while other thrifts continued addressing operational losses and high levels of non-performing assets. Through 2012 and 2013, thrift institutions continued their trend of improved asset quality and equity offerings were more abundant.
Beginning in the first quarter of 2014, concerns about economic growth in emerging markets, geopolitical turmoil in Ukraine, extreme weather in the U.S. and profit taking tempered the financial markets. Additionally, the markets remained focused on Federal Reserve policy with regard to quantitative easing. The GDP for the first quarter was negative 2.1% reflecting slower consumer spending on health care and the effects of turbulent weather which closed airports and retail establishments throughout the U.S.
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During the second quarter, the Federal Open Market Committee (FOMC) made few changes to its policy other than making further reductions in its asset purchase program. As the year progressed, the economy began to transition from an economy driven by economic policy to an economy more reflective of fundamental economic forces such as consumer spending, durable goods orders, inflation and the labor market.
As shown in Table 4.11, the SNL Thrift Index peaked in 2006 at 1,829.29 before dropping to a low of 481.38 in 2011. Since the end of 2011, the Thrift Index has gradually increased to its current post recession high of 735.25. However, the recovery has reflected volatility with the index bouncing between 600 and 700 over the past eighteen months.
As a result of improving financial market conditions, the number of standard thrift conversion offerings has increased with the recovery in the financial markets. A total of seven standard conversion occurred in 2012, three in 2013, nine in 2014 and two so far in 2015. Numerous additional thrift conversion offerings in 2012 and 2013 were second stage mutual holding company conversions. The pro forma price to book value multiples of standard conversions have trended upward since 2012 (see Table 4.12), though the two offerings closed in 2015 shown a slightly lower trend. As shown in Table 4.13, aftermarket price performance has been moderate, with a median price appreciation ranging from 15% to 20% for one day, one week, one month and 3 month trading periods. Historically, converting thrifts stock prices have trended upwards towards existing peer valuation but have found resistance approaching tangible book value until an established trading market has been established, earnings growth was sustained and market comfort with management operating a new public company materialized. As a result, thrift conversions typically trade at discounts to public traded peers.
St. James Federal’s merger with Wells Financial will differ from a standard conversion as Wells Financial will offer stock in an amount equal to the appraised value of St. James Federal. As such, there already exists a trading market for Wells Financial’s common stock. However, like a standard conversion, members of St James Federal will be given priority rights to purchase Wells Financial shares.
St. James Federal has effectively limited a predominant portion of its depositors to the local communities in, and contiguous to, Watonwan County. Therefore, the Association anticipates that most of the subscription interest in its offering will be local, thereby limiting the amount of any potential speculative interest from outside of Minnesota.
McAuliffe Financial, LLC Page 60 |
Table 4.11
Thrift Stock Index
Relative to Long and Short-Term Rates
3-Month | 12-Month | Long-Term | SNL | |||||||||||||||||
Prime | T-Bill | T-Bill | T-Secur. | Thrift | ||||||||||||||||
Month Ended | Rate (1) | Rate (1) | Rate (1) (2) | Index (2) | Index | |||||||||||||||
(Last Day of Period) | ||||||||||||||||||||
12/31/1988 | 10.50 | 8.35 | 8.99 | 9.01 | ||||||||||||||||
12/31/1989 | 10.50 | 7.88 | 7.72 | 7.90 | ||||||||||||||||
12/31/1990 | 10.00 | 6.95 | 7.05 | 8.24 | ||||||||||||||||
12/31/1991 | 7.21 | 4.18 | 4.38 | 7.70 | ||||||||||||||||
12/31/1992 | 6.00 | 3.29 | 3.71 | 7.44 | ||||||||||||||||
12/31/1993 | 6.00 | 3.13 | 3.61 | 6.25 | ||||||||||||||||
12/31/1994 | 8.50 | 5.76 | 7.14 | 7.87 | ||||||||||||||||
12/31/1995 | 8.65 | 5.29 | 5.31 | 6.06 | ||||||||||||||||
12/31/1996 | 8.25 | 5.04 | 5.47 | 6.55 | ||||||||||||||||
12/31/1997 | 8.50 | 5.30 | 5.53 | 5.99 | ||||||||||||||||
12/31/1998 | 7.75 | 4.50 | 4.52 | 5.06 | ||||||||||||||||
12/31/1999 | 8.50 | 5.36 | 5.84 | 6.35 | 562.39 | |||||||||||||||
12/31/2000 | 9.50 | 5.94 | 5.60 | 5.49 | 874.27 | |||||||||||||||
12/31/2001 | 4.84 | 1.72 | 2.22 | 5.48 | 918.18 | |||||||||||||||
12/31/2002 | 4.25 | 1.21 | 1.45 | 5.04 | 1,073.20 | |||||||||||||||
12/31/2003 | 4.00 | 0.91 | 1.31 | 5.11 | 1,482.32 | |||||||||||||||
12/31/2004 | 5.15 | 2.22 | 2.67 | 4.88 | 1,605.59 | |||||||||||||||
12/31/2005 | 7.15 | 3.97 | 4.35 | 4.73 | 1,616.43 | |||||||||||||||
12/31/2006 | 8.25 | 4.97 | 4.94 | 4.78 | 1,829.29 | |||||||||||||||
12/31/2007 | 7.33 | 3.07 | 3.26 | 4.57 | 1,058.03 | |||||||||||||||
12/31/2008 | 3.61 | 0.03 | 0.49 | 3.18 | 653.86 | |||||||||||||||
12/31/2009 | 3.25 | 0.06 | 0.47 | 4.58 | 586.96 | |||||||||||||||
12/31/2010 | 3.25 | 0.12 | 0.29 | 4.21 | 592.13 | |||||||||||||||
12/31/2011 | 3.25 | 0.02 | 0.11 | 2.57 | 481.38 | |||||||||||||||
12/31/2012 | 3.25 | 0.04 | 0.15 | 2.47 | 565.76 | |||||||||||||||
3/31/2013 | 3.25 | 0.09 | 0.14 | 2.78 | 602.30 | |||||||||||||||
6/30/2013 | 3.25 | 0.05 | 0.14 | 3.07 | 625.27 | |||||||||||||||
9/30/2013 | 3.25 | 0.02 | 0.11 | 3.53 | 650.81 | |||||||||||||||
12/31/2013 | 3.25 | 0.07 | 0.13 | 3.63 | 706.46 | |||||||||||||||
1/31/2014 | 3.25 | 0.04 | 0.11 | 3.52 | 685.52 | |||||||||||||||
2/28/2014 | 3.25 | 0.05 | 0.11 | 3.38 | 701.33 | |||||||||||||||
3/31/2014 | 3.25 | 0.06 | 0.13 | 3.36 | 718.88 | |||||||||||||||
4/30/2014 | 3.25 | 0.03 | 0.10 | 3.27 | 699.89 | |||||||||||||||
5/31/2014 | 3.25 | 0.04 | 0.09 | 3.12 | 699.20 | |||||||||||||||
6/30/2014 | 3.25 | 0.04 | 0.10 | 3.15 | 723.14 | |||||||||||||||
7/31/2014 | 3.25 | 0.03 | 0.10 | 3.07 | 702.16 | |||||||||||||||
8/30/2014 | 3.25 | 0.03 | 0.10 | 2.94 | 717.24 | |||||||||||||||
9/30/2014 | 3.25 | 0.02 | 0.10 | 3.01 | 697.68 | |||||||||||||||
10/31/2014 | 3.25 | 0.01 | 0.10 | 2.81 | 725.45 | |||||||||||||||
11/30/2014 | 3.25 | 0.02 | 0.12 | 2.62 | 723.61 | |||||||||||||||
12/31/2014 | 3.25 | 0.04 | 0.22 | 2.47 | 738.69 | |||||||||||||||
1/31/2015 | 3.25 | 0.02 | 0.16 | 2.04 | 699.91 | |||||||||||||||
2/13/2015 | 3.25 | 0.02 | 0.22 | 2.33 | 735.25 |
(1) U.S. Financial Data, The Federal Reserve of St. Louis
(2) Treasury 20 Year Rate replaces the discontinued 30-Year Treasury Constant Maturity Rate as of 2/28/02.
Source: SNL Financial
McAuliffe Financial, LLC Page 61 |
Table 4.12
Standard Conversions
Since 2012
Institution | Ticker | IPO Date | IPO Price | Net Proceeds | Price/Book | Price/Tang. Book | Price/Earnings | |||||||||||||||||
($000) | (%) | (%) | (x) | |||||||||||||||||||||
West End Indiana Bancshares, Inc. | WEIN | 1/11/2012 | 10.0000 | 10,693 | 49.1 | 49.1 | 20.9 | |||||||||||||||||
Wellesley Bancorp, Inc. | WEBK | 1/26/2012 | 10.0000 | 18,379 | 59.7 | 59.7 | 12.6 | |||||||||||||||||
FS Bancorp, Inc. | FSBW | 7/10/2012 | 10.0000 | 26,266 | 61.1 | 61.1 | 25.6 | |||||||||||||||||
HomeTrust Bancshares, Inc. | HTBI | 7/11/2012 | 10.0000 | 185,481 | 59.7 | 59.7 | NM | |||||||||||||||||
Madison County Financial, Inc. | MCBK | 10/4/2012 | 10.0000 | 26,577 | 55.2 | 56.6 | 6.9 | |||||||||||||||||
Hamilton Bancorp, Inc. | HBK | 10/10/2012 | 10.0000 | 31,394 | 55.7 | 58.3 | NM | |||||||||||||||||
Meetinghouse Bancorp, Inc. | MTGB | 11/20/2012 | 10.0000 | 4,946 | 64.7 | 64.7 | 29.4 | |||||||||||||||||
2012 Average | 57.9 | 58.4 | 19.1 | |||||||||||||||||||||
2012 Median | 59.7 | 59.7 | 20.9 | |||||||||||||||||||||
Westbury Bancorp, Inc. | WBB | 4/10/2013 | 10.0000 | 42,279 | 57.7 | 57.7 | 250.0 | |||||||||||||||||
Sunnyside Bancorp, Inc. | SNNY | 7/16/2013 | 10.0000 | 6,386 | 63.0 | 63.0 | NM | |||||||||||||||||
Quarry City Savings and Loan Association | QRRY | 7/26/2013 | 10.0000 | 3,196 | 54.2 | 56.4 | 13.9 | |||||||||||||||||
2013 Average | 58.3 | 59.0 | 132.0 | |||||||||||||||||||||
2013 Median | 57.7 | 57.7 | 132.0 | |||||||||||||||||||||
Coastway Bancorp, Inc. | CWAY | 1/15/2014 | 10.0000 | 40,778 | 72.2 | 72.2 | 500.0 | |||||||||||||||||
Edgewater Bancorp, Inc. | EGDW | 1/17/2014 | 10.0000 | 4,578 | 52.7 | 55.0 | NM | |||||||||||||||||
Home Bancorp Wisconsin, Inc. | HWIS | 4/24/2014 | 10.0000 | 6,638 | 64.6 | 64.6 | NM | |||||||||||||||||
Sunshine Bancorp, Inc. | SBCP | 7/15/2014 | 10.0000 | 35,860 | 67.8 | 67.8 | NM | |||||||||||||||||
Blue Hills Bancorp, Inc. | BHBK | 7/22/2014 | 10.0000 | 239,742 | 72.0 | 74.8 | 100.0 | |||||||||||||||||
Entegra Financial Corp. | ENFC | 10/1/2014 | 10.0000 | 61,724 | 66.5 | 66.5 | 7.6 | |||||||||||||||||
Pilgrim Bancshares, Inc. | PLRM | 10/13/2014 | 10.0000 | 17,724 | 73.3 | 73.3 | 50.0 | |||||||||||||||||
Melrose Bancorp, Inc. | MELR | 10/22/2014 | 10.0000 | 22,364 | 64.9 | 64.9 | 54.0 | |||||||||||||||||
MB Bancorp, Inc. | MBCQ | 12/30/2014 | 10.0000 | 17,571 | 60.6 | 60.6 | NM | |||||||||||||||||
2014 Average | 66.3 | 66.3 | 37.2 | |||||||||||||||||||||
2014 Median | 65.7 | 65.7 | 50.0 | |||||||||||||||||||||
First Northwest Bancorp | FNWB | 1/30/2015 | 10.0000 | 102,652 | 70.2 | 70.2 | 62.5 | |||||||||||||||||
MW Bancorp, Inc. | MWBC | 1/30/2015 | 10.0000 | 6,601 | 56.8 | 56.8 | NM | |||||||||||||||||
2015 Average | 63.5 | 63.5 | 62.5 | |||||||||||||||||||||
2015 Median | 63.5 | 63.5 | 62.5 |
Source: SNL Financial
Table 4.13
Aftermarket Price Performance
% Price | % Price | % Price | % Price | |||||||||||||||||||||||||
Change One | Change One | Change One | Change 3 | |||||||||||||||||||||||||
Institution | Ticker | IPO Date | IPO Price | Day | Week | Month | Months | |||||||||||||||||||||
West End Indiana Bancshares, Inc. | 4293367 | WEIN | 1/11/2012 | 10.0000 | 12.60 | 12.50 | 20.00 | 20.00 | ||||||||||||||||||||
Wellesley Bancorp, Inc. | 4298699 | WEBK | 1/26/2012 | 10.0000 | 20.00 | 20.90 | 22.90 | 26.50 | ||||||||||||||||||||
FS Bancorp, Inc. | 4304579 | FSBW | 7/10/2012 | 10.0000 | 0.10 | 0.70 | 2.10 | 7.50 | ||||||||||||||||||||
HomeTrust Bancshares, Inc. | 4309281 | HTBI | 7/11/2012 | 10.0000 | 17.00 | 20.00 | 24.50 | 36.00 | ||||||||||||||||||||
Madison County Financial, Inc. | 4095155 | MCBK | 10/4/2012 | 10.0000 | 48.90 | 46.10 | 45.09 | 61.00 | ||||||||||||||||||||
Hamilton Bancorp, Inc. | 4328225 | HBK | 10/10/2012 | 10.0000 | 19.00 | 17.00 | 12.50 | 13.90 | ||||||||||||||||||||
Meetinghouse Bancorp, Inc. | 4315942 | MTGB | 11/20/2012 | 10.0000 | 12.50 | 27.50 | 20.00 | 14.20 | ||||||||||||||||||||
Westbury Bancorp, Inc. | 4066453 | WBB | 4/10/2013 | 10.0000 | 35.20 | 35.10 | 33.30 | 36.50 | ||||||||||||||||||||
Sunnyside Bancorp, Inc. | 4381269 | SNNY | 7/16/2013 | 10.0000 | 5.00 | 4.50 | 0.10 | -1.30 | ||||||||||||||||||||
Quarry City Savings and Loan Association | 1000790 | QRRY | 7/26/2013 | 10.0000 | 7.50 | 2.00 | 0.50 | 3.00 | ||||||||||||||||||||
Coastway Bancorp, Inc. | 4320571 | CWAY | 1/15/2014 | 10.0000 | 9.20 | 8.50 | 1.90 | 2.80 | ||||||||||||||||||||
Edgewater Bancorp, Inc. | 4410547 | EGDW | 1/17/2014 | 10.0000 | 0.00 | 2.50 | 2.50 | 4.00 | ||||||||||||||||||||
Home Bancorp Wisconsin, Inc. | 4396910 | HWIS | 4/24/2014 | 10.0000 | -3.90 | -7.40 | -17.50 | -15.50 | ||||||||||||||||||||
Sunshine Bancorp, Inc. | 4436252 | SBCP | 7/15/2014 | 10.0000 | 20.30 | 19.00 | 19.30 | 19.20 | ||||||||||||||||||||
Blue Hills Bancorp, Inc. | 4436012 | BHBK | 7/22/2014 | 10.0000 | 23.80 | 21.50 | 29.70 | 32.00 | ||||||||||||||||||||
Entegra Financial Corp. | 4290505 | ENFC | 10/1/2014 | 10.0000 | 32.80 | 30.70 | 34.00 | 43.90 | ||||||||||||||||||||
Pilgrim Bancshares, Inc. | 4436228 | PLRM | 10/13/2014 | 10.0000 | 11.50 | 9.40 | 8.20 | 9.00 | ||||||||||||||||||||
Melrose Bancorp, Inc. | 4436001 | MELR | 10/22/2014 | 10.0000 | 30.50 | 31.20 | 31.50 | 31.10 | ||||||||||||||||||||
MB Bancorp, Inc. | 4560377 | MBCQ | 12/30/2014 | 10.0000 | 4.50 | 6.00 | 6.10 | NA | ||||||||||||||||||||
First Northwest Bancorp | 4343673 | FNWB | 1/30/2015 | 10.0000 | 21.80 | 22.50 | NA | NA | ||||||||||||||||||||
MW Bancorp, Inc. | 4559464 | MWBC | 1/30/2015 | 10.0000 | 15.00 | 14.70 | NA | NA |
Source: SNL Financial
McAuliffe Financial, LLC Page 62 |
Based on the above mentioned factors, we believe that a new issue discount applied to the price to book (and tangible book) valuation approach is necessary and appropriate in St. James Federal’s offering. As a result, we believe a slight downward adjustment is warranted for the marketing of new stock.
Summary of Valuation Adjustments
Overall, based on the factors discussed in this section, we have concluded that St. James Federal’s pro forma market value should reflect the following valuation adjustments relative to the Comparable Group:
Valuation Factor | Valuation Adjustment | |
Financial Condition | Slight Upward | |
Balance Sheet Growth | Modest Downward Adjustment | |
Earnings Performance | Modest Upward Adjustment | |
Market Area | Moderate Downward | |
Dividends | No Adjustment | |
Liquidity of the Issue | Slight Downward | |
Management | No Adjustment | |
Marketing of the Issue | Slight Downward | |
Relative to the Supplemental Group | ||
Valuation Factor | Valuation Adjustment | |
Financial Condition | Slight Upward | |
Balance Sheet Growth | Modest Downward Adjustment | |
Earnings Performance | Modest Upward Adjustment | |
Market Area | Moderate Downward | |
Dividends | No Adjustment | |
Liquidity of the Issue | No Adjustment | |
Management | No Adjustment | |
Marketing of the Issue | Slight Downward |
McAuliffe Financial, LLC Page 63 |
V. | MARKET VALUE DETERMINATION |
Introduction
In accordance with the accepted valuation methodology promulgated by the regulators, i.e., the pro forma market value approach, we have considered three key pricing ratios: (1) price/earnings (or “P/E”), (2) price/book value (or “P/B”), and (3) price/assets (or “P/A”). All of these pricing approaches were calculated on a pro forma basis including the effects of the stock proceeds. We have incorporated the valuation assumptions and parameters disclosed in Wells Financial’s offering prospectus for reinvestment rate, effective income tax rate, stock benefit plans and offering expenses.
In our estimate of St. James Federal’s pro forma market value, the pricing ratios of the Comparable Group and Supplemental Group were analyzed. We also assessed the pricing ratios of all publicly traded thrifts as well as recent thrift conversion offerings.
Discussion of Pricing Ratios
Price to Earnings Ratio
We believe that investors place their primary emphasis on making purchase decisions on the recent earnings results and expected profitability of savings institutions. Therefore, we believe it is appropriate to place considerable emphasis on the pro forma price/earnings valuation approach in deriving a fair market value for a converting savings institution. However, price/earnings ratios for some savings institutions are less meaningful as a result of the variability of reported earnings due to non-operating gains and losses. As a proper basis for comparison, the price to core earnings ratio was also utilized for both the Association, Comparable Group ant the Supplemental Group to eliminate any non-recurring items.
Price to Book Value/Price to Tangible Book Value Ratio
We also give considerable weight to the pro forma price/book value approach. This valuation method also is closely analyzed by investors in making investment decisions, particularly for a converting thrift institution. However, it is important to note that the “book value” of a company is an accounting derived concept that represents the historically accumulated retained earnings of such entity. Such book value does not necessarily take into consideration the current earnings power of the company. Obviously, a converting thrift institution has a base of capital in place prior to the time of conversion. To attempt to value such
McAuliffe Financial, LLC Page 64 |
converting institution at a pro forma price/book value ratio equal to or even close to the price/book value ratios of publicly traded stock institutions will result, in most cases, in an unrealistic valuation that is unacceptable in the marketplace. Thus, a disproportionate reliance on a price/book value approach may result in unrealistic estimated pro forma market value of the Association. This is particularly true since investors will be seeking a certain minimum, and thus reasonable, return on equity (“ROE”).
Therefore, we believe that in determining an appropriate value for a converting institution such as St. James Federal, the pro forma price/book value ratio must be balanced against the pro forma price/earnings ratio and the pro forma price/assets ratio. Investors will also price financial institutions on a tangible book basis because it incorporates the price/book approach, adjusted for intangibles, if any.
Price to Assets Ratio
One other valuation method, the pro forma price/assets ratio, is most applicable for valuing savings institutions with low net worth and/or very low operating income or losses. Since this is not the case for St. James Federal, we have placed less weight on this approach but have considered the reasonableness of the resulting price/assets ratio in our valuation process.
Pro Forma Value
Based upon the adjustments discussed in the previous section, St. James Federal’s midpoint value is estimated to be $2,300,000. Based upon a range below and above the midpoint value, the relative values are $1,955,000 at the minimum and $2,645,000 at the maximum, respectively. At the super maximum of the range, the offering value would be $3,041,750.
At the various levels of the estimated value range, the offering would result in the following offering data:
Table 5.1
Value Range
Total | Price | Total | ||||||||||
Shares | Per Share | Value | ||||||||||
Appraised Value – Midpoint | 85,185 | $ | 27.00 | $ | 2,300,000 | |||||||
Range: | ||||||||||||
- Minimum | 72,407 | $ | 27.00 | $ | 1,955,000 | |||||||
- Maximum | 97,963 | $ | 27.00 | $ | 2,645,000 | |||||||
- Super-Maximum | 112,657 | $ | 27.00 | $ | 3,041,750 |
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Table 5.2 highlights the key pro forma pricing ratios for St. James Federal, based on the above valuation range, and compares such ratios to the Comparable Group’s mean and median pricing ratios as well as to the Supplemental Group ratios.
Table 5.2
Pricing Ratios
St. James Federal | Comparable Group | Supplemental Group | ||||||||||||||||||||
Mean | Median | Mean | Median | |||||||||||||||||||
Min | 13.71 | |||||||||||||||||||||
Price-Core Earnings Ratio (P/CoreE) | Mid | 15.98 | 27.40 | 16.66 | 32.98 | 17.61 | ||||||||||||||||
Max | 18.12 | |||||||||||||||||||||
Smax | 20.61 | |||||||||||||||||||||
Min | 50.93 | |||||||||||||||||||||
Price-to-Book Ratio (P/B) | Mid | 55.34 | 84.68 | 87.21 | 71.52 | 74.20 | ||||||||||||||||
Max | 59.13 | |||||||||||||||||||||
Smax | 62.97 | |||||||||||||||||||||
Min | 50.93 | |||||||||||||||||||||
Price-to-Tangible Book Ratio (P/TB) | Mid | 55.34 | 86.72 | 88.57 | 71.87 | 75.64 | ||||||||||||||||
Max | 59.13 | |||||||||||||||||||||
Smax | 62.97 | |||||||||||||||||||||
Min | 6.91 | |||||||||||||||||||||
Price-to-Assets (P/A) | Mid | 8.04 | 13.03 | 11.97 | 9.78 | 8.66 | ||||||||||||||||
Max | 9.14 | |||||||||||||||||||||
Smax | 10.38 |
Table 5.3 specifically compares the Association’s pro forma price/earnings, price/core
Table 5.3
Comparable and Supplemental Group
Pricing Multiple Comparison
Price Relative to | ||||||||||||||||
Comparable Group | CoreEarnings | Book | Tangible Book | Assets | ||||||||||||
St. James Federal (Midpoint) | 15.98 | 55.34 | 55.34 | 8.04 | ||||||||||||
Comparable Group Average | 27.40 | 84.68 | 86.72 | 13.03 | ||||||||||||
Discount (Premium) | 41.67 | 34.65 | 36.19 | 38.29 | ||||||||||||
Comparable Group Median | 16.66 | 87.21 | 88.57 | 11.97 | ||||||||||||
Discount (Premium) | 4.09 | 36.55 | 37.52 | 32.82 |
Price Relative to | ||||||||||||||||
Supplemental Group | CoreEarnings | Book | Tangible Book | Assets | ||||||||||||
St. James Federal (Midpoint) | 15.98 | 55.34 | 55.34 | 8.04 | ||||||||||||
Supplemental Group Average | 32.98 | 71.52 | 71.87 | 9.78 | ||||||||||||
Discount (Premium) | 51.55 | 22.63 | 23.00 | 17.83 | ||||||||||||
Supplemental Group Median | 17.61 | 74.20 | 75.64 | 8.66 | ||||||||||||
Discount (Premium) | 9.28 | 25.42 | 26.84 | 7.12 |
McAuliffe Financial, LLC Page 66 |
earnings, price/book (and price/tangible book), and price/assets ratios, based on the $2,300,000 midpoint value, to the Comparable Group’s average and median ratios and as the Supplemental Group’s average and median ratios. Based on St. James Federal’s midpoint value, the Association is priced at a premium relative to earnings and discounts on a price/book value (and price/tangible book value) basis and price/assets basis.
Table 5.4 presents in more detail the pro forma pricing calculations for St. James Federal, the Comparable Group and the Supplemental Group.
Valuation Conclusion
It is therefore McAuliffe Financial’s opinion that as of February 13, 2015, the estimated pro forma market value of St. James Federal was $2,300,000 at the midpoint of a range with a minimum of $1,955,000 to a maximum of $2,645,000 at 15% below and 15% above the midpoint of the range, respectively. Based on an adjusted maximum value of 15% above the maximum value, the adjusted maximum value or super maximum value is $3,041,750.
This appraisal represents an initial valuation for St. James Federal. Due to the duration of time that passes between the time this appraisal report is written and the time the offering closes, numerous factors could lead McAuliffe Financial to update or revise the appraised value of the Association. Some factors that could lead McAuliffe Financial to adjust the appraised value include: (1) changes in the Association’s operations and financial condition; (2) changes in the market valuation or financial condition of the Comparable Group or Supplemental Group; (3) changes in the financial markets; and (4) changes in the market for thrift conversions. Should there be material changes to any of these factors, McAuliffe Financial will prepare an appraisal update to appropriately adjust the value of the Association. At the time of closing of the stock offering, McAuliffe Financial will prepare a final appraisal to determine if the valuation range is still appropriate and determine the exact valuation amount appropriate for the Association.
McAuliffe Financial, LLC Page 67 |
Table 5.4
St. James Federal Savings & Loan Association
As of February 13, 2015
Market | Per Share Data (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalization | Core | Book | Dividends (4) | Financial Characteristics (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market | 12 Month | Value/ | Pricing Ratios (3) | Amount/ | Payout | Total | Equity/ | Tang Eq./ | NPAs/ | Reported | Core | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State | Exchange | Price (1) | Value | EPS | Share | P/E | P/B | P/TB | P/A | P/Core | Share | Yield | Ratio | Assets | Assets | Assets | Assets | ROA | ROE | ROA | ROE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($) | ($Mil) | ($) | ($) | (x) | (%) | (%) | (%) | (x) | ($) | (%) | (%) | ($Mil) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
St James Federal S & LA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supermaximum | 3.04 | 1.31 | 43.04 | 27.55 | 62.97 | 62.97 | 10.38 | 20.61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum | 2.65 | 1.49 | 45.77 | 24.55 | 59.13 | 59.13 | 9.14 | 18.12 | �� | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Midpoint | MN | 27.00 | 2.30 | 1.69 | 48.91 | 21.60 | 55.34 | 55.34 | 8.04 | 15.98 | 0.00 | 0.00 | 0.00 | 27,215 | 10.12 | 10.12 | 0.71 | 0.36 | 3.55 | 0.49 | 4.84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum | 1.96 | 1.97 | 53.15 | 18.62 | 50.93 | 50.93 | 6.91 | 13.71 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All Publicly Traded Thrifts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Averages | 17.84 | 428.14 | 0.98 | 16.35 | 19.28 | 105.68 | 114.44 | 12.99 | 24.87 | 0.31 | 1.82 | 49.45 | 3,219,807 | 12.86 | 12.23 | 1.91 | 0.73 | 6.00 | 0.76 | 6.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Median | 14.84 | 109.11 | 0.83 | 14.81 | 15.91 | 98.78 | 103.78 | 12.72 | 16.41 | 0.20 | 1.47 | 39.34 | 1,002,266 | 12.50 | 11.25 | 1.58 | 0.69 | 5.44 | 0.74 | 5.46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable Group | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Averages | 13.90 | 55.02 | 0.72 | 16.12 | 23.05 | 84.68 | 86.72 | 13.03 | 27.40 | 0.18 | 1.20 | 34.86 | 418,691 | 15.22 | 14.92 | 1.37 | 0.65 | 4.39 | 0.63 | 4.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Median | 12.19 | 55.11 | 0.73 | 15.02 | 19.71 | 87.21 | 88.57 | 11.97 | 16.66 | 0.16 | 1.26 | 27.15 | 423,805 | 13.54 | 13.10 | 1.48 | 0.66 | 3.97 | 0.55 | 4.05 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable Group | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First Federal of Northern Michigan Bancorp, Inc. | FFNM | MI | NASDAQ | 5.45 | 20.31 | 0.66 | 8.04 | 10.48 | 67.77 | 70.96 | 6.51 | 8.31 | 0.08 | 1.47 | 15.38 | 311,923 | 9.61 | 9.22 | 1.23 | 0.77 | 7.05 | 0.56 | 4.80 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FS Bancorp, Inc. | FSBW | WA | NASDAQ | 19.36 | 62.64 | 1.53 | 20.35 | 12.74 | 95.15 | 95.15 | 12.29 | 9.27 | 0.24 | 1.24 | 15.79 | 509,754 | 12.92 | 12.92 | 0.24 | 1.01 | 7.17 | 1.01 | 7.22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HMN Financial, Inc. | HMNF | MN | NASDAQ | 12.01 | 53.69 | 1.23 | 14.77 | 9.76 | 81.33 | 81.33 | 9.46 | 10.01 | 0.00 | 0.00 | NM | 577,426 | 13.16 | 13.16 | 2.43 | 1.21 | 9.12 | 1.21 | 9.12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
La Porte Bancorp, Inc. | LPSB | IN | NASDAQ | 12.58 | 71.37 | 0.81 | 14.52 | 15.53 | 86.62 | 96.76 | 13.76 | 16.36 | 0.16 | 1.27 | 19.75 | 518,616 | 15.89 | 14.46 | 2.12 | 0.86 | 5.38 | 0.86 | 5.35 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Madison County Financial, Inc. | MCBK | NE | NASDAQ | 20.10 | 60.95 | 1.05 | 20.35 | 19.71 | 98.78 | 100.46 | 20.22 | 15.80 | 0.24 | 1.19 | 23.53 | 301,929 | 20.47 | 20.20 | 0.15 | 1.01 | 4.69 | 1.04 | 4.84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Polonia Bancorp, Inc. | PBCP | PA | NASDAQ | 10.40 | 34.69 | 0.00 | 11.64 | NM | 89.38 | 89.38 | 11.65 | 86.67 | 0.00 | NA | NM | 297,885 | 13.03 | 13.03 | 1.51 | 0.00 | 0.02 | 0.00 | 0.02 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prudential Bancorp, Inc. | PBIP | PA | NASDAQ | 12.22 | 113.69 | 0.17 | 13.68 | 61.10 | 89.33 | 89.33 | 21.72 | 61.10 | 0.09 | 0.98 | 45.00 | 527,082 | 24.31 | 24.31 | 1.46 | 0.37 | 1.51 | 0.32 | 1.30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United Community Bancorp | UCBA | IN | NASDAQ | 12.16 | 56.36 | 0.43 | 15.27 | 27.64 | 79.61 | 85.02 | 11.07 | 28.28 | 0.24 | 1.97 | 54.55 | 508,938 | 13.91 | 12.94 | 2.73 | 0.40 | 2.88 | 0.41 | 2.93 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wolverine Bancorp, Inc. | WBKC | MI | NASDAQ | 23.75 | 53.87 | 0.81 | 27.05 | 29.32 | 87.81 | 87.81 | 15.94 | 16.96 | 0.60 | NA | 74.07 | 338,671 | 18.15 | 18.15 | 1.68 | 0.55 | 2.84 | 0.55 | 2.84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
WVS Financial Corp. | WVFC | PA | NASDAQ | 11.02 | 22.60 | 0.53 | 15.52 | 21.19 | 70.99 | 70.99 | 7.67 | 21.19 | 0.16 | 1.45 | 30.77 | 294,689 | 10.80 | 10.80 | 0.16 | 0.33 | 3.25 | 0.34 | 3.29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Comparable Group | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Averages | 13.11 | 9.92 | 0.52 | 18.53 | 32.48 | 71.52 | 71.87 | 9.78 | 32.98 | 0.11 | 1.58 | 36.69 | 103,721 | 13.94 | 13.90 | 1.58 | 0.32 | 2.73 | 0.25 | 2.49 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Median | 10.82 | 8.12 | 0.37 | 16.63 | 25.92 | 74.20 | 75.64 | 8.66 | 17.61 | 0.00 | 2.05 | 28.17 | 100,941 | 12.20 | 12.20 | 1.32 | 0.33 | 2.12 | 0.24 | 1.93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CCSB Financial Corp. | CCFC | MO | OTC Pink | 7.35 | 5.74 | 0.14 | 13.44 | 52.50 | 54.70 | 54.70 | 6.57 | 91.88 | 0.00 | NA | NM | 87,263 | 12.02 | 12.02 | 4.36 | 0.11 | 0.97 | 0.11 | 0.97 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Community Investors Bancorp, Inc. | CIBN | OH | OTC Pink | 9.74 | 7.75 | 0.66 | 13.84 | 14.32 | 70.35 | 70.35 | 5.89 | 8.40 | 0.20 | 2.05 | 29.41 | 131,599 | 8.37 | 8.37 | 2.84 | 0.42 | 5.03 | 0.41 | 4.87 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First Niles Financial, Inc. | FNFI | OH | OTCQB | 9.15 | 10.30 | 0.01 | 10.51 | 45.75 | 87.06 | 87.06 | 10.69 | NM | 0.15 | 2.19 | 75.00 | 96,437 | 12.39 | 12.39 | 1.79 | 0.23 | 1.77 | 0.01 | 0.09 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Great American Bancorp, Inc. | GTPS | IL | OTCQB | 26.00 | 12.22 | 1.07 | 35.00 | 16.67 | 74.28 | 76.54 | 6.92 | 21.67 | 0.42 | 2.15 | 26.92 | 176,704 | 9.31 | 9.06 | 1.28 | 0.42 | 4.45 | 0.29 | 3.05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hibernia Bancorp, Inc. | HIBE | LA | OTCQB | 17.40 | 16.62 | 0.49 | 22.90 | NM | 75.97 | 75.97 | 15.76 | NM | 0.00 | NA | NM | 105,445 | 20.75 | 20.75 | 0.30 | 0.10 | 0.48 | 0.05 | 2.47 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Patriot Federal Bank | PFDB | NY | OTCQB | 5.80 | 8.49 | (0.08 | ) | 7.82 | NA | 74.12 | 75.31 | 6.94 | NM | 0.00 | 0.00 | NA | 122,365 | 9.36 | 9.22 | 0.98 | (0.01 | ) | (0.08 | ) | (0.04 | ) | (0.42 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarry City Savings and Loan Association | QRRY | MO | OTCQB | 11.90 | 4.85 | 0.56 | 19.42 | 21.07 | 61.26 | 61.26 | 10.38 | 12.40 | 0.00 | NA | NM | 46,757 | 16.94 | 16.94 | 0.68 | 0.52 | 2.99 | 0.52 | 2.99 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Royal Financial, Inc. | RYFL | IL | OTCQX | 8.00 | 20.06 | 0.14 | 10.32 | 30.77 | 77.54 | 77.54 | 15.66 | 50.00 | 0.00 | NA | NM | 128,043 | 20.20 | 20.20 | 2.20 | 0.48 | 2.47 | 0.27 | 1.39 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United-American Savings Bank | UASB | PA | OTCQB | 20.00 | 6.19 | 1.98 | 23.70 | 10.28 | 84.39 | 84.39 | 6.87 | 13.56 | 0.30 | 1.50 | 15.42 | 90,084 | 8.14 | 8.14 | 1.36 | 0.69 | 8.39 | 0.70 | 8.56 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Versailles Financial Corporation | VERF | OH | OTC Pink | 15.75 | 6.95 | 0.25 | 28.36 | 68.48 | 55.54 | 55.54 | 12.17 | NM | 0.00 | NA | NM | 52,513 | 21.91 | 21.91 | 0.00 | 0.19 | 0.83 | 0.20 | 0.91 |
(1) | Closing Price. |
(2) | EPS (estimate core basis) is based on actual trailing 12 month data, adjusted to omit non-operating items on a tax-effective basis, and is shown on a pro forma basis where appropriate. |
(3) | P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; P/Core = Price to core earnings. |
(4) | Indicated 12 month dividend, based on last quarterly dividend declared. |
(5) | Indicated 12 month dividend as a percent of trailing 12 month estimated core earnings. |
(6) | ROA (return on assets) and ROE (return on equity) are indicated ratios based on trailing 12 month common earnings and average common equity and total asset balances. |
(7) | Excludes from averages and medians those companies that are subject of acutal or rumored acquisition activities or unusual operating characteristics. |
Source: Corporate reports, offering circulars, SNL Financial, LC and McAuliffe Financial calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.
McAuliffe Financial, LLC Page 68 |
EXHIBITS
McAuliffe Financial, LLC Page 69 |
LIST OF EXHIBITS
St. James Federal Savings and Loan Association
EXHIBIT | ||
NUMBER | DESCRIPTION | |
I-1 | Map of Branch Location | |
III-1 | General Characteristics of Publicly Traded Thrifts | |
V-1 | Market Value Characteristics of Publicly Traded Thrifts | |
V-2 | Pro Forma Calculations | |
V-3 | Pro Forma Analysis | |
VI -1 | Firm Qualifications Statement |
McAuliffe Financial, LLC Page 70 |
EXHIBIT I-1
Map of Branch Locations
McAuliffe Financial, LLC Page 71 |
McAuliffe Financial, LLC Page 72 |
EXHIBIT III-1
General Characteristics of Public-Traded
Thrifts
As of February 13, 2015
Exhibit III-1
Key Financial Characteristics
IPO | Total | Total | Total | Equity/ | ||||||||||||||||||||||||||||
Company | Ticker | St | Date | Assets | Deposits | Equity | Assets | ROA | Exchange | Branches | ||||||||||||||||||||||
Cullman Bancorp, Inc. (MHC) | CULL | AL | 10/9/2009 | 232,483 | 144,082 | 43,175 | 18.57 | 0.98 | OTCQB | 4 | ||||||||||||||||||||||
SouthFirst Bancshares, Inc. | SZBI | AL | 2/14/1995 | 92,407 | 79,901 | 8,059 | 8.72 | NA | OTC Pink | 3 | ||||||||||||||||||||||
BofI Holding, Inc. | BOFI | CA | 3/14/2005 | 5,194,721 | 4,005,395 | 450,422 | 8.67 | 1.56 | NASDAQ | 1 | ||||||||||||||||||||||
Broadway Financial Corporation | BYFC | CA | 1/9/1996 | 337,993 | 217,092 | 27,442 | 8.12 | 0.53 | NASDAQ | 3 | ||||||||||||||||||||||
First ULB Corp. | FUBP | CA | 352,374 | 307,925 | 31,308 | 8.88 | NA | OTCQX | 9 | |||||||||||||||||||||||
Malaga Financial Corporation | MLGF | CA | 947,000 | 709,000 | 104,225 | 11.01 | 1.22 | OTCQB | 5 | |||||||||||||||||||||||
Provident Financial Holdings, Inc. | PROV | CA | 6/28/1996 | 1,112,390 | 905,512 | 144,350 | 12.98 | 0.74 | NASDAQ | 15 | ||||||||||||||||||||||
Simplicity Bancorp, Inc. | SMPL | CA | 11/19/2010 | 863,351 | 656,542 | 137,541 | 15.93 | 0.61 | NASDAQ | 8 | ||||||||||||||||||||||
First Connecticut Bancorp, Inc. | FBNK | CT | 6/30/2011 | 2,484,352 | 1,733,041 | 233,555 | 9.40 | 0.41 | NASDAQ | 25 | ||||||||||||||||||||||
Naugatuck Valley Financial Corporation | NVSL | CT | 6/30/2011 | 489,125 | 376,911 | 59,433 | 12.15 | -0.42 | NASDAQ | 10 | ||||||||||||||||||||||
People's United Financial, Inc. | PBCT | CT | 4/16/2007 | 35,997,100 | 26,138,200 | 4,633,100 | 12.87 | 0.75 | NASDAQ | 406 | ||||||||||||||||||||||
PSB Holdings, Inc. (MHC) | PSBH | CT | 10/5/2004 | 471,918 | 348,937 | 51,870 | 10.99 | 0.23 | NASDAQ | 8 | ||||||||||||||||||||||
SI Financial Group, Inc. | SIFI | CT | 1/13/2011 | 1,350,533 | 1,010,713 | 157,739 | 11.68 | 0.33 | NASDAQ | 26 | ||||||||||||||||||||||
United Financial Bancorp, Inc. | UBNK | CT | 3/4/2011 | 5,476,809 | 4,035,311 | 602,408 | 11.00 | 0.16 | NASDAQ | 58 | ||||||||||||||||||||||
WSFS Financial Corporation | WSFS | DE | 11/26/1986 | 4,853,320 | 3,649,235 | 489,051 | 10.08 | 1.17 | NASDAQ | 46 | ||||||||||||||||||||||
Atlantic Coast Financial Corporation | ACFC | FL | 2/4/2011 | 706,498 | 440,780 | 72,336 | 10.24 | 0.19 | NASDAQ | 12 | ||||||||||||||||||||||
EverBank Financial Corp | EVER | FL | 5/2/2012 | 21,617,788 | 15,508,697 | 1,747,594 | 8.08 | 0.77 | NYSE | 12 | ||||||||||||||||||||||
Sunshine Bancorp, Inc. | SBCP | FL | 7/15/2014 | 222,852 | 155,689 | 63,704 | 28.59 | NA | NASDAQ | 5 | ||||||||||||||||||||||
Sunshine Financial, Inc. | SSNF | FL | 4/6/2011 | 149,569 | 125,067 | 23,468 | 15.69 | 0.00 | OTCQB | 6 | ||||||||||||||||||||||
Charter Financial Corporation | CHFN | GA | 4/9/2013 | 979,777 | 701,475 | 213,186 | 21.76 | 0.58 | NASDAQ | 17 | ||||||||||||||||||||||
Heritage Financial Group, Inc. | HBOS | GA | 11/30/2010 | 1,705,614 | 1,322,109 | 160,017 | 9.38 | 0.50 | NASDAQ | 37 | ||||||||||||||||||||||
Territorial Bancorp Inc. | TBNK | HI | 7/13/2009 | 1,691,897 | 1,359,679 | 216,378 | 12.79 | 0.85 | NASDAQ | 29 | ||||||||||||||||||||||
Webster City Federal Bancorp (MHC) | WCFB | IA | 8/15/1994 | 113,693 | 97,251 | 15,682 | 13.79 | NA | OTCQB | 2 | ||||||||||||||||||||||
AJS Bancorp, Inc. | AJSB | IL | 10/10/2013 | 216,309 | 163,009 | 34,852 | 16.11 | 1.03 | OTCQB | 3 | ||||||||||||||||||||||
Allied First Bancorp, Inc. | AFBA | IL | 12/31/2001 | 119,986 | 109,053 | 1,939 | 1.62 | NA | OTC Pink | 1 | ||||||||||||||||||||||
BankFinancial Corporation | BFIN | IL | 6/24/2005 | 1,465,410 | 1,211,713 | 216,121 | 14.75 | 2.83 | NASDAQ | 20 | ||||||||||||||||||||||
Ben Franklin Financial, Inc. | BFFID | IL | 1/23/2015 | 92,094 | 81,976 | 9,100 | 9.88 | -1.34 | OTC Pink | 2 | ||||||||||||||||||||||
First BancTrust Corporation | FIRT | IL | 4/19/2001 | 429,318 | 344,184 | 39,593 | 9.22 | 0.76 | �� | OTCQX | 7 | |||||||||||||||||||||
Great American Bancorp, Inc. | GTPS | IL | 6/30/1995 | 176,704 | 151,958 | 16,457 | 9.31 | 0.42 | OTCQB | 2 | ||||||||||||||||||||||
Harvard Illinois Bancorp, Inc. | HARI | IL | 4/9/2010 | 169,347 | 134,626 | 15,600 | 9.21 | -2.74 | OTCQB | 3 | ||||||||||||||||||||||
IF Bancorp, Inc. | IROQ | IL | 7/8/2011 | 549,833 | 405,393 | 83,721 | 15.23 | 0.62 | NASDAQ | 6 | ||||||||||||||||||||||
Jacksonville Bancorp, Inc. | JXSB | IL | 7/15/2010 | 311,900 | 245,900 | 45,000 | 14.43 | 0.95 | NASDAQ | 6 | ||||||||||||||||||||||
Midland Capital Holdings Corporation | MCPH | IL | 6/30/1993 | 120,197 | 107,178 | 12,208 | 10.16 | -0.18 | OTC Pink | 4 | ||||||||||||||||||||||
Mutual Federal Bancorp, Inc. (MHC) | MFDB | IL | 4/6/2006 | 80,541 | 65,902 | 14,862 | 18.45 | NA | OTCQB | 1 | ||||||||||||||||||||||
Ottawa Savings Bancorp, Inc. (MHC) | OTTW | IL | 7/15/2005 | 160,769 | 135,111 | 22,402 | 13.93 | 0.57 | OTCQB | 3 | ||||||||||||||||||||||
Park Bancorp, Inc. | PFED | IL | 8/12/1996 | 163,670 | 127,375 | 5,947 | 3.63 | -1.04 | OTCQB | 4 | ||||||||||||||||||||||
Royal Financial, Inc. | RYFL | IL | 1/21/2005 | 128,043 | 85,366 | 25,866 | 20.20 | 0.49 | OTCQX | 3 |
Exhibit III-1
Key Financial Characteristics
IPO | Total | Total | Total | Equity/ | ||||||||||||||||||||||||||||
Company | Ticker | St | Date | Assets | Deposits | Equity | Assets | ROA | Exchange | Branches | ||||||||||||||||||||||
Sugar Creek Financial Corp. | SUGR | IL | 4/9/2014 | 91,411 | 72,586 | 13,156 | 14.39 | 0.35 | OTCQB | 2 | ||||||||||||||||||||||
DSA Financial Corporation | DSFN | IN | 7/30/2004 | 119,697 | 90,037 | 18,260 | 15.26 | 0.83 | OTC Pink | 2 | ||||||||||||||||||||||
FFW Corporation | FFWC | IN | 4/5/1993 | 341,177 | 288,845 | 34,504 | 10.11 | 1.27 | OTC Pink | 5 | ||||||||||||||||||||||
Fidelity Federal Bancorp | FDLB | IN | 8/31/1987 | 195,651 | 130,202 | 22,349 | 11.42 | NA | OTCQB | 9 | ||||||||||||||||||||||
First Capital, Inc. | FCAP | IN | 1/4/1999 | 472,761 | 412,636 | NA | NA | 1.23 | NASDAQ | 12 | ||||||||||||||||||||||
La Porte Bancorp, Inc. | LPSB | IN | 10/5/2012 | 518,616 | 340,768 | 82,388 | 15.89 | 0.86 | NASDAQ | 7 | ||||||||||||||||||||||
Mid-Southern Savings Bank, FSB (MHC) | MSVB | IN | 4/9/1998 | 192,991 | 171,637 | 20,567 | 10.66 | -0.23 | OTCQB | 4 | ||||||||||||||||||||||
NorthWest Indiana Bancorp | NWIN | IN | 775,044 | 633,946 | 76,165 | 9.83 | 0.98 | OTCQB | 14 | |||||||||||||||||||||||
Peoples Bancorp, Inc. | PBNI | IN | 7/7/1987 | 486,555 | 368,702 | 61,325 | 12.60 | 0.74 | OTC Pink | 16 | ||||||||||||||||||||||
Third Century Bancorp | TDCB | IN | 6/30/2004 | 123,938 | 93,395 | 15,539 | 12.54 | 0.19 | OTCQB | 5 | ||||||||||||||||||||||
United Community Bancorp | UCBA | IN | 1/10/2013 | 508,938 | 420,552 | 70,788 | 13.91 | 0.40 | NASDAQ | 8 | ||||||||||||||||||||||
West End Indiana Bancshares, Inc. | WEIN | IN | 1/11/2012 | 257,693 | 201,711 | 30,611 | 11.88 | 0.47 | OTCQB | 5 | ||||||||||||||||||||||
Capitol Federal Financial, Inc. | CFFN | KS | 12/22/2010 | 9,056,356 | 4,705,012 | 1,465,929 | 16.19 | 0.81 | NASDAQ | 47 | ||||||||||||||||||||||
First Independence Corporation | FFSL | KS | 10/8/1993 | 135,958 | 91,741 | 13,881 | 10.21 | 0.42 | OTC Pink | 5 | ||||||||||||||||||||||
Kentucky First Federal Bancorp (MHC) | KFFB | KY | 3/3/2005 | 295,740 | 211,716 | 67,217 | 22.73 | 0.63 | NASDAQ | 7 | ||||||||||||||||||||||
Poage Bankshares, Inc. | PBSK | KY | 9/13/2011 | 411,774 | 318,190 | 66,807 | 16.22 | 0.22 | NASDAQ | 8 | ||||||||||||||||||||||
Century Next Financial Corporation | CTUY | LA | 10/1/2010 | 169,697 | 135,812 | 21,618 | 12.74 | 0.80 | OTCQB | 2 | ||||||||||||||||||||||
FPB Financial Corp. | FPBF | LA | 7/1/1999 | 226,672 | 176,887 | 23,291 | 10.28 | 0.95 | OTCQB | 5 | ||||||||||||||||||||||
Hibernia Bancorp, Inc. | HIBE | LA | 1/28/2009 | 103,176 | 78,820 | 21,756 | 21.09 | 0.10 | OTCQB | 3 | ||||||||||||||||||||||
Home Bancorp, Inc. | HBCP | LA | 10/3/2008 | 1,221,415 | 993,573 | 154,144 | 12.62 | 0.81 | NASDAQ | 27 | ||||||||||||||||||||||
Home Federal Bancorp, Inc. of Louisiana | HFBL | LA | 12/22/2010 | 346,307 | 252,764 | 43,292 | 12.50 | 0.95 | NASDAQ | 5 | ||||||||||||||||||||||
Louisiana Bancorp, Inc. | LABC | LA | 7/10/2007 | 333,346 | 193,098 | 58,397 | 17.52 | 0.88 | NASDAQ | 4 | ||||||||||||||||||||||
State Investors Bancorp, Inc. | SIBC | LA | 7/7/2011 | 268,880 | 157,970 | 41,527 | 15.44 | 0.39 | NASDAQ | 4 | ||||||||||||||||||||||
Blue Hills Bancorp, Inc. | BHBK | MA | 7/22/2014 | 1,728,148 | 1,212,716 | 411,606 | 23.82 | -0.01 | NASDAQ | 10 | ||||||||||||||||||||||
BSB Bancorp, Inc. | BLMT | MA | 10/5/2011 | 1,335,717 | 932,583 | 135,132 | 10.12 | 0.31 | NASDAQ | 6 | ||||||||||||||||||||||
Chicopee Bancorp, Inc. | CBNK | MA | 7/20/2006 | 639,222 | 483,558 | 88,134 | 13.79 | -0.10 | NASDAQ | 9 | ||||||||||||||||||||||
Georgetown Bancorp, Inc. | GTWN | MA | 7/12/2012 | 271,020 | 182,354 | 30,712 | 11.33 | 0.55 | NASDAQ | 3 | ||||||||||||||||||||||
Hampden Bancorp, Inc. | HBNK | MA | 1/17/2007 | 711,101 | 488,892 | 85,722 | 12.05 | �� | 0.51 | NASDAQ | 10 | |||||||||||||||||||||
Hingham Institution for Savings | HIFS | MA | 12/20/1988 | 1,552,205 | 1,089,217 | 121,515 | 7.83 | 1.52 | NASDAQ | 13 | ||||||||||||||||||||||
Meetinghouse Bancorp, Inc. | MTGB | MA | 11/20/2012 | 109,163 | 87,483 | 10,450 | 9.57 | -0.15 | OTC Pink | 2 | ||||||||||||||||||||||
Melrose Bancorp, Inc. | MELR | MA | 10/22/2014 | 212,698 | 189,965 | 21,628 | 10.17 | NA | NASDAQ | 1 | ||||||||||||||||||||||
Meridian Bancorp, Inc. | EBSB | MA | 7/29/2014 | 3,278,526 | 2,503,935 | 577,710 | 17.62 | 0.75 | NASDAQ | 27 | ||||||||||||||||||||||
Peoples Federal Bancshares, Inc. | PEOP | MA | 7/7/2010 | 597,020 | 430,213 | 104,466 | 17.50 | 0.17 | NASDAQ | 8 | ||||||||||||||||||||||
Pilgrim Bancshares, Inc. | PLRM | MA | 10/13/2014 | 194,530 | 180,194 | 13,056 | 6.71 | NA | OTC Pink | 3 | ||||||||||||||||||||||
Wellesley Bancorp, Inc. | WEBK | MA | 1/26/2012 | 535,115 | 422,245 | 49,346 | 9.22 | 0.36 | NASDAQ | 4 | ||||||||||||||||||||||
Westfield Financial, Inc. | WFD | MA | 1/4/2007 | 1,320,096 | 834,218 | 142,543 | 10.80 | 0.48 | NASDAQ | 14 | ||||||||||||||||||||||
American Bank Holdings, Inc. | ABKH | MD | 456,676 | 318,223 | 45,941 | 10.06 | NA | OTCQB | 5 |
Exhibit III-1
Key Financial Characteristics
IPO | Total | Total | Total | Equity/ | ||||||||||||||||||||||||||||
Company | Ticker | St | Date | Assets | Deposits | Equity | Assets | ROA | Exchange | Branches | ||||||||||||||||||||||
BV Financial, Inc. (MHC) | BVFL | MD | 1/14/2005 | 173,899 | 146,548 | 20,528 | 11.80 | 0.45 | OTC Pink | 5 | ||||||||||||||||||||||
Colombo Bank | IFSB | MD | 6/6/1985 | 199,575 | 143,463 | 20,421 | 10.23 | -1.72 | OTCQB | 5 | ||||||||||||||||||||||
Fraternity Community Bancorp, Inc. | FRTR | MD | 4/1/2011 | 162,812 | 113,880 | 27,215 | 16.72 | -0.16 | OTCQB | 3 | ||||||||||||||||||||||
Hamilton Bancorp, Inc. | HBK | MD | 10/10/2012 | 288,655 | 223,841 | 60,405 | 20.93 | -0.25 | NASDAQ | 5 | ||||||||||||||||||||||
MB Bancorp, Inc. | MBCQ | MD | 12/30/2014 | 136,116 | 100,473 | 17,348 | 12.75 | NA | OTC Pink | 3 | ||||||||||||||||||||||
Severn Bancorp, Inc. | SVBI | MD | 776,681 | 543,814 | 83,810 | 10.79 | 0.37 | NASDAQ | 4 | |||||||||||||||||||||||
Auburn Bancorp, Inc. (MHC) | ABBB | ME | 8/18/2008 | 73,041 | 51,329 | 5,760 | 7.89 | -0.49 | OTC Pink | 2 | ||||||||||||||||||||||
Edgewater Bancorp, Inc. | EGDW | MI | 1/17/2014 | 116,958 | 91,838 | 13,466 | 11.51 | -0.88 | OTCQB | 5 | ||||||||||||||||||||||
First Federal of Northern Michigan Bancorp, Inc. | FFNM | MI | 4/4/2005 | 311,923 | 258,506 | 29,973 | 9.61 | 0.77 | NASDAQ | 9 | ||||||||||||||||||||||
Flagstar Bancorp, Inc. | FBC | MI | 4/30/1997 | 9,839,851 | 7,068,606 | 1,372,821 | 13.95 | -0.70 | NYSE | 107 | ||||||||||||||||||||||
Sturgis Bancorp, Inc. | STBI | MI | 11/10/1988 | 312,455 | 234,296 | 30,350 | 9.71 | NA | OTCQX | 11 | ||||||||||||||||||||||
Wolverine Bancorp, Inc. | WBKC | MI | 1/20/2011 | 338,671 | 220,510 | 61,461 | 18.15 | 0.55 | NASDAQ | 4 | ||||||||||||||||||||||
HMN Financial, Inc. | HMNF | MN | 6/30/1994 | 577,426 | 496,750 | 76,013 | 13.16 | 1.21 | NASDAQ | 11 | ||||||||||||||||||||||
Redwood Financial, Inc. | REDW | MN | 7/10/1995 | 227,713 | 192,551 | 25,365 | 11.14 | NA | OTC Pink | 8 | ||||||||||||||||||||||
CCSB Financial Corp. | CCFC | MO | 1/9/2003 | 87,114 | 72,889 | 10,414 | 11.95 | 0.22 | OTC Pink | 3 | ||||||||||||||||||||||
Farmers & Merchants Bancorp, Inc. | FMBA | MO | 126,650 | 94,048 | 12,352 | 9.75 | NA | Grey Mkt | 5 | |||||||||||||||||||||||
Liberty Bancorp, Inc. | LBCP | MO | 7/24/2006 | 468,755 | 384,772 | 65,498 | 13.97 | 0.85 | OTC Pink | 12 | ||||||||||||||||||||||
NASB Financial, Inc. | NASB | MO | 9/27/1985 | 1,168,083 | 773,762 | 199,892 | 17.11 | 1.42 | OTCQX | 9 | ||||||||||||||||||||||
Pulaski Financial Corp. | PULB | MO | 12/3/1998 | 1,426,456 | 1,098,333 | 114,512 | 8.03 | 0.89 | NASDAQ | 13 | ||||||||||||||||||||||
Quarry City Savings and Loan Association | QRRY | MO | 7/26/2013 | 46,757 | 37,660 | 7,919 | 16.94 | 0.52 | OTCQB | 1 | ||||||||||||||||||||||
ASB Bancorp, Inc. | ASBB | NC | 10/12/2011 | 760,050 | 603,379 | 94,397 | 12.42 | 0.33 | NASDAQ | 13 | ||||||||||||||||||||||
Entegra Financial Corp. | ENFC | NC | 10/1/2014 | 903,648 | 703,117 | 107,319 | 11.88 | 0.71 | NASDAQ | 12 | ||||||||||||||||||||||
KS Bancorp, Inc. | KSBI | NC | 12/30/1993 | 318,451 | 248,915 | 21,768 | 6.84 | 0.41 | OTCQB | 10 | ||||||||||||||||||||||
LifeStore Financial Group (MHC) | LSFG | NC | 10/7/1996 | 254,961 | 175,741 | 17,906 | 7.02 | 0.34 | OTC Pink | 5 | ||||||||||||||||||||||
Little Bank, Inc. | LTLB | NC | 339,169 | 277,432 | 32,534 | 9.59 | 0.88 | OTCQB | 7 | |||||||||||||||||||||||
Wake Forest Bancshares, Inc. (MHC) | WAKE | NC | 4/3/1996 | 112,533 | 88,697 | 22,354 | 19.86 | 0.78 | OTC Pink | 1 | ||||||||||||||||||||||
Equitable Financial Corp. (MHC) | EQFC | NE | 11/9/2005 | 181,939 | 149,979 | 19,692 | 10.82 | NA | OTC Pink | 6 | ||||||||||||||||||||||
Madison County Financial, Inc. | MCBK | NE | 10/4/2012 | 301,929 | 210,307 | 61,807 | 20.47 | 1.01 | NASDAQ | 5 | ||||||||||||||||||||||
Guaranty Bancorp, Inc. | GUAA | NH | 393,898 | 300,754 | 39,470 | 10.02 | 0.77 | OTCQB | 10 | |||||||||||||||||||||||
New Hampshire Thrift Bancshares, Inc. | NHTB | NH | 5/27/1986 | 1,503,786 | 1,152,714 | 139,836 | 9.30 | 0.68 | NASDAQ | 36 | ||||||||||||||||||||||
Cape Bancorp, Inc. | CBNJ | NJ | 2/1/2008 | 1,079,894 | 797,056 | 140,878 | 13.05 | 0.62 | NASDAQ | 15 | ||||||||||||||||||||||
Clifton Bancorp Inc. | CSBK | NJ | 4/2/2014 | 1,211,527 | 731,070 | 357,693 | 29.52 | 0.54 | NASDAQ | 12 | ||||||||||||||||||||||
Colonial Financial Services, Inc. | COBK | NJ | 7/13/2010 | 552,709 | 477,861 | 62,811 | 11.36 | 0.18 | NASDAQ | 9 | ||||||||||||||||||||||
Delanco Bancorp, Inc. | DLNO | NJ | 10/18/2013 | 126,720 | 109,053 | 13,641 | 10.76 | -0.73 | OTC Pink | 2 | ||||||||||||||||||||||
Hudson City Bancorp, Inc. | HCBK | NJ | 6/7/2005 | 36,569,082 | 19,376,544 | 4,781,410 | 13.08 | 0.42 | NASDAQ | 136 | ||||||||||||||||||||||
Investors Bancorp, Inc. | ISBC | NJ | 5/8/2014 | 18,773,639 | 12,172,326 | 3,577,855 | 19.06 | 0.76 | NASDAQ | 136 | ||||||||||||||||||||||
Kearny Financial Corp. (MHC) | KRNY | NJ | 2/24/2005 | 3,547,869 | 2,464,845 | 493,234 | 13.90 | 0.28 | NASDAQ | 42 |
Exhibit III-1
Key Financial Characteristics
IPO | Total | Total | Total | Equity/ | ||||||||||||||||||||||||||||
Company | Ticker | St | Date | Assets | Deposits | Equity | Assets | ROA | Exchange | Branches | ||||||||||||||||||||||
Lincoln Park Bancorp (MHC) | LPBC | NJ | 12/20/2004 | 224,925 | 111,500 | 17,100 | 7.60 | 0.48 | OTCQB | 2 | ||||||||||||||||||||||
Magyar Bancorp, Inc. (MHC) | MGYR | NJ | 1/24/2006 | 524,545 | 445,842 | 46,184 | 8.80 | 0.12 | NASDAQ | 6 | ||||||||||||||||||||||
MSB Financial Corp. (MHC) | MSBF | NJ | 1/5/2007 | 345,491 | 269,263 | 41,116 | 11.90 | 0.28 | NASDAQ | 5 | ||||||||||||||||||||||
Northfield Bancorp, Inc. | NFBK | NJ | 1/25/2013 | 3,020,869 | 1,620,665 | 593,928 | 19.66 | 0.73 | NASDAQ | 30 | ||||||||||||||||||||||
Ocean Shore Holding Co. | OSHC | NJ | 12/21/2009 | 1,024,754 | 787,078 | 105,811 | 10.33 | 0.61 | NASDAQ | 11 | ||||||||||||||||||||||
OceanFirst Financial Corp. | OCFC | NJ | 7/3/1996 | 2,356,714 | 1,720,135 | 218,259 | 9.26 | 0.86 | NASDAQ | 24 | ||||||||||||||||||||||
Oritani Financial Corp. | ORIT | NJ | 6/24/2010 | 3,250,934 | 1,792,867 | 507,713 | 15.62 | 1.31 | NASDAQ | 26 | ||||||||||||||||||||||
Provident Financial Services, Inc. | PFS | NJ | 1/16/2003 | 8,523,377 | 5,792,523 | 1,144,099 | 13.42 | 0.92 | NYSE | 90 | ||||||||||||||||||||||
Wawel Bank (MHC) | WAWL | NJ | 4/1/2004 | 76,513 | 63,505 | 12,057 | 15.76 | -1.56 | OTCQB | 2 | ||||||||||||||||||||||
Alamogordo Financial Corp. (MHC) | ALMG | NM | 5/16/2000 | 253,968 | 204,665 | 30,570 | 12.04 | 0.99 | OTCQB | 4 | ||||||||||||||||||||||
Astoria Financial Corporation | AF | NY | 11/18/1993 | 15,640,021 | 9,504,909 | 1,580,070 | 10.10 | 0.61 | NYSE | 87 | ||||||||||||||||||||||
Carver Bancorp, Inc. | CARV | NY | 10/25/1994 | 644,115 | 520,410 | 53,131 | 8.25 | -0.27 | NASDAQ | 10 | ||||||||||||||||||||||
CMS Bancorp, Inc. | CMSB | NY | 4/4/2007 | 273,344 | 226,782 | 23,876 | 8.73 | 0.25 | NASDAQ | 6 | ||||||||||||||||||||||
Dime Community Bancshares, Inc. | DCOM | NY | 6/26/1996 | 4,497,107 | 2,659,792 | 459,725 | 10.22 | 1.03 | NASDAQ | 25 | ||||||||||||||||||||||
FSB Community Bankshares, Inc. (MHC) | FSBC | NY | 8/15/2007 | 245,960 | 175,307 | 21,204 | 8.62 | 0.27 | OTCQB | 5 | ||||||||||||||||||||||
Gouverneur Bancorp, Inc. (MHC) | GOVB | NY | 3/23/1999 | 142,190 | 82,500 | 28,200 | 19.83 | 1.19 | OTC Pink | 3 | ||||||||||||||||||||||
Greene County Bancorp, Inc. (MHC) | GCBC | NY | 12/30/1998 | 712,422 | 583,181 | 64,464 | 9.05 | 0.97 | NASDAQ | 14 | ||||||||||||||||||||||
Hometown Bancorp, Inc. (MHC) | HTWC | NY | 6/29/2007 | 130,686 | 116,645 | 8,591 | 6.57 | -3.12 | OTCQB | 4 | ||||||||||||||||||||||
Lake Shore Bancorp, Inc. (MHC) | LSBK | NY | 4/4/2006 | 487,471 | 386,939 | 71,630 | 14.69 | 0.65 | NASDAQ | 11 | ||||||||||||||||||||||
New York Community Bancorp, Inc. | NYCB | NY | 11/23/1993 | 48,559,217 | 28,328,734 | 5,781,815 | 11.91 | 1.01 | NYSE | 278 | ||||||||||||||||||||||
NorthEast Community Bancorp, Inc. (MHC) | NECB | NY | 7/6/2006 | 502,062 | 364,116 | 103,567 | 20.63 | 0.26 | NASDAQ | 9 | ||||||||||||||||||||||
Oneida Financial Corp. | ONFC | NY | 7/7/2010 | 798,169 | 689,170 | 95,833 | 12.01 | 0.66 | NASDAQ | 14 | ||||||||||||||||||||||
Pathfinder Bancorp, Inc. | PBHC | NY | 10/17/2014 | 561,024 | 415,568 | 69,204 | 12.34 | 0.52 | NASDAQ | 17 | ||||||||||||||||||||||
Patriot Federal Bank | PFDB | NY | 12/31/2005 | 122,365 | 93,840 | 11,452 | 9.36 | -0.01 | OTCQB | 3 | ||||||||||||||||||||||
Seneca-Cayuga Bancorp, Inc. (MHC) | SCAY | NY | 7/11/2006 | 279,558 | 198,882 | 30,549 | 10.93 | 0.84 | OTCQB | 10 | ||||||||||||||||||||||
Sunnyside Bancorp, Inc. | SNNY | NY | 7/16/2013 | 94,505 | 81,391 | 12,102 | 12.81 | -0.25 | OTCQB | 1 | ||||||||||||||||||||||
TrustCo Bank Corp NY | TRST | NY | 4,644,439 | 4,032,241 | 393,444 | 8.47 | 0.97 | NASDAQ | 144 | |||||||||||||||||||||||
ASB Financial Corp. | ASBN | OH | 5/11/1995 | 246,837 | 199,995 | 26,118 | 10.58 | 0.50 | OTC Pink | 7 | ||||||||||||||||||||||
Central Federal Corporation | CFBK | OH | 12/30/1998 | 307,630 | 250,963 | 34,357 | 11.17 | 0.37 | NASDAQ | 4 | ||||||||||||||||||||||
Cheviot Financial Corp. | CHEV | OH | 1/18/2012 | 571,237 | 451,784 | 96,182 | 16.84 | 0.53 | NASDAQ | 12 | ||||||||||||||||||||||
Community Investors Bancorp, Inc. | CIBN | OH | 2/7/1995 | 131,599 | 94,419 | 11,009 | 8.37 | 0.42 | OTC Pink | 5 | ||||||||||||||||||||||
First Defiance Financial Corp. | FDEF | OH | 10/2/1995 | 2,178,952 | 1,760,813 | 278,954 | 12.80 | 1.10 | NASDAQ | 33 | ||||||||||||||||||||||
First Niles Financial, Inc. | FNFI | OH | 10/27/1998 | 97,154 | 60,354 | 11,596 | 11.94 | 0.22 | OTCQB | 1 | ||||||||||||||||||||||
Greenville Federal Financial Corporation (MHC) | GVFF | OH | 1/5/2006 | 149,547 | 101,063 | 19,890 | 13.30 | 0.58 | OTCQB | 2 | ||||||||||||||||||||||
Home City Financial Corporation | HCFL | OH | 12/30/1996 | 151,552 | 106,825 | 15,755 | 10.40 | 0.87 | OTCQX | 2 | ||||||||||||||||||||||
Home Loan Financial Corporation | HLFN | OH | 3/26/1998 | 178,355 | 131,305 | 23,147 | 12.98 | 1.68 | OTC Pink | 4 | ||||||||||||||||||||||
MW Bancorp, Inc. | MWBC | OH | 1/30/2015 | 90,373 | 61,547 | 8,811 | 9.75 | NA | OTC Pink | 1 |
Exhibit III-1
Key Financial Characteristics
IPO | Total | Total | Total | Equity/ | ||||||||||||||||||||||||||||
Company | Ticker | St | Date | Assets | Deposits | Equity | Assets | ROA | Exchange | Branches | ||||||||||||||||||||||
Peoples-Sidney Financial Corporation | PPSF | OH | 4/28/1997 | 110,781 | 93,804 | 14,883 | 13.43 | -0.06 | OTC Pink | 5 | ||||||||||||||||||||||
Perpetual Federal Savings Bank | PFOH | OH | 4/19/1991 | 349,143 | 277,921 | 61,883 | 17.72 | 0.80 | OTC Pink | 1 | ||||||||||||||||||||||
TFS Financial Corporation (MHC) | TFSL | OH | 4/23/2007 | 12,067,843 | 8,539,214 | 1,812,693 | 15.02 | 0.56 | NASDAQ | 38 | ||||||||||||||||||||||
United Community Financial Corp. | UCFC | OH | 7/9/1998 | 1,833,550 | 1,347,836 | 240,135 | 13.10 | 2.82 | NASDAQ | 32 | ||||||||||||||||||||||
Versailles Financial Corporation | VERF | OH | 1/11/2010 | 52,513 | 33,697 | 11,503 | 21.91 | 0.19 | OTC Pink | 1 | ||||||||||||||||||||||
Wayne Savings Bancshares, Inc. | WAYN | OH | 1/9/2003 | 417,519 | 348,922 | 40,002 | 9.58 | 0.64 | NASDAQ | 12 | ||||||||||||||||||||||
Alliance Bancorp, Inc. of Pennsylvania | ALLB | PA | 1/18/2011 | 423,472 | 348,708 | 65,650 | 15.50 | 0.46 | NASDAQ | 8 | ||||||||||||||||||||||
Beneficial Bancorp, Inc. | BNCL | PA | 1/13/2015 | 4,359,892 | 3,443,174 | 611,650 | 14.03 | 0.37 | NASDAQ | 60 | ||||||||||||||||||||||
ESB Financial Corporation | ESBF | PA | 6/13/1990 | 1,938,923 | 1,267,432 | 213,623 | 11.02 | 0.94 | NASDAQ | 23 | ||||||||||||||||||||||
ESSA Bancorp, Inc. | ESSA | PA | 4/4/2007 | 1,567,754 | 1,106,454 | 169,486 | 10.81 | 0.60 | NASDAQ | 28 | ||||||||||||||||||||||
Eureka Financial Corporation | EKFC | PA | 3/1/2011 | 154,451 | 129,437 | 23,049 | 14.92 | 1.03 | OTC Pink | 2 | ||||||||||||||||||||||
Fox Chase Bancorp, Inc. | FXCB | PA | 6/29/2010 | 1,094,616 | 711,909 | 175,911 | 16.07 | 0.76 | NASDAQ | 10 | ||||||||||||||||||||||
Harleysville Savings Financial Corporation | HARL | PA | 8/4/1987 | 773,588 | 495,572 | 62,640 | 8.10 | 0.61 | OTCQX | 9 | ||||||||||||||||||||||
Malvern Bancorp, Inc. | MLVF | PA | 10/12/2012 | 603,170 | 440,625 | 77,885 | 12.91 | 0.10 | NASDAQ | 8 | ||||||||||||||||||||||
Northwest Bancshares, Inc. | NWBI | PA | 12/18/2009 | 7,775,033 | 5,632,542 | 1,062,647 | 13.67 | 0.79 | NASDAQ | 165 | ||||||||||||||||||||||
Polonia Bancorp, Inc. | PBCP | PA | 11/13/2012 | 297,885 | 195,682 | 38,815 | 13.03 | 0.00 | NASDAQ | 5 | ||||||||||||||||||||||
Prudential Bancorp, Inc. | PBIP | PA | 10/10/2013 | 527,082 | 391,442 | 128,131 | 24.31 | 0.37 | NASDAQ | 8 | ||||||||||||||||||||||
Quaint Oak Bancorp, Inc. | QNTO | PA | 7/5/2007 | 155,643 | 124,405 | 17,575 | 11.29 | 0.88 | OTCQX | 2 | ||||||||||||||||||||||
Standard Financial Corp. | STND | PA | 10/7/2010 | 446,731 | 309,561 | 74,116 | 16.59 | 0.75 | OTCQX | 11 | ||||||||||||||||||||||
United-American Savings Bank | UASB | PA | 8/6/2010 | 90,084 | 75,594 | 7,336 | 8.14 | 0.69 | OTCQB | 1 | ||||||||||||||||||||||
William Penn Bancorp, Inc. (MHC) | WMPN | PA | 4/16/2008 | 315,265 | 175,501 | 60,023 | 19.04 | 0.91 | OTC Pink | 3 | ||||||||||||||||||||||
WVS Financial Corp. | WVFC | PA | 11/29/1993 | 294,689 | 141,537 | 31,829 | 10.80 | 0.33 | NASDAQ | 6 | ||||||||||||||||||||||
Coastway Bancorp, Inc. | CWAY | RI | 1/15/2014 | 451,480 | 344,102 | 70,394 | 15.59 | -0.29 | NASDAQ | 11 | ||||||||||||||||||||||
First Federal of South Carolina, FSB (MHC) | FSGB | SC | 11/14/1994 | 72,829 | 66,143 | 4,938 | 6.78 | 0.07 | OTCQB | 3 | ||||||||||||||||||||||
Oconee Federal Financial Corp. (MHC) | OFED | SC | 1/14/2011 | 357,096 | 277,948 | 77,431 | 21.68 | 1.05 | NASDAQ | 7 | ||||||||||||||||||||||
HF Financial Corp. | HFFC | SD | 4/8/1992 | 1,263,013 | 946,787 | 101,862 | 8.07 | 0.35 | NASDAQ | 27 | ||||||||||||||||||||||
Meta Financial Group, Inc. | CASH | SD | 9/20/1993 | 2,108,063 | 1,788,879 | 183,683 | 8.71 | 0.76 | NASDAQ | 12 | ||||||||||||||||||||||
Athens Bancshares Corporation | AFCB | TN | 1/7/2010 | 302,404 | 248,572 | 42,680 | 14.11 | 0.90 | NASDAQ | 7 | ||||||||||||||||||||||
SFB Bancorp, Inc. | SFBK | TN | 5/30/1997 | 56,951 | 42,841 | 14,094 | 24.75 | NA | OTCQB | 2 | ||||||||||||||||||||||
United Tennessee Bankshares, Inc. | UNTN | TN | 1/5/1998 | 191,692 | 169,518 | 19,391 | 10.12 | 0.79 | OTCQB | 3 | ||||||||||||||||||||||
BancAffiliated, Inc. | BAFI | TX | 6/1/2001 | 437,391 | 309,954 | 37,626 | 8.60 | 1.01 | OTC Pink | 4 | ||||||||||||||||||||||
Anchor Bancorp | ANCB | WA | 1/26/2011 | 377,454 | 298,772 | 62,702 | 16.61 | 2.47 | NASDAQ | 11 | ||||||||||||||||||||||
First Financial Northwest, Inc. | FFNW | WA | 10/10/2007 | 936,997 | 614,127 | 181,412 | 19.36 | 1.17 | NASDAQ | 1 | ||||||||||||||||||||||
First Northwest Bancorp | FNWB | WA | 1/30/2015 | 924,151 | 740,824 | 83,009 | 8.98 | 0.35 | NASDAQ | 9 | ||||||||||||||||||||||
FS Bancorp, Inc. | FSBW | WA | 7/10/2012 | 509,754 | 420,444 | 65,836 | 12.92 | 1.01 | NASDAQ | 8 | ||||||||||||||||||||||
HomeStreet, Inc. | HMST | WA | 2/10/2012 | 3,535,090 | 2,445,430 | 302,238 | 8.55 | 0.69 | NASDAQ | 34 | ||||||||||||||||||||||
Riverview Bancorp, Inc. | RVSB | WA | 10/1/1997 | 828,435 | 689,330 | 102,430 | 12.36 | 2.39 | NASDAQ | 17 |
Exhibit III-1
Key Financial Characteristics
IPO | Total | Total | Total | Equity/ | ||||||||||||||||||||||||||||
Company | Ticker | St | Date | Assets | Deposits | Equity | Assets | ROA | Exchange | Branches | ||||||||||||||||||||||
Timberland Bancorp, Inc. | TSBK | WA | 1/13/1998 | 749,917 | 617,986 | 84,267 | 11.24 | 0.81 | NASDAQ | 22 | ||||||||||||||||||||||
Anchor BanCorp Wisconsin Inc. | ABCW | WI | 7/16/1992 | 2,106,520 | 1,858,807 | 214,709 | 10.19 | 0.62 | NASDAQ | 53 | ||||||||||||||||||||||
Bank Mutual Corporation | BKMU | WI | 10/30/2003 | 2,328,446 | 1,718,756 | 284,491 | 12.22 | 0.63 | NASDAQ | 77 | ||||||||||||||||||||||
Guaranty Financial Corp. (MHC) | GFCJ | WI | 6/21/1993 | 1,096,748 | 1,040,489 | NA | NA | NA | OTC Pink | 153 | ||||||||||||||||||||||
Home Bancorp Wisconsin, Inc. | HWIS | WI | 4/24/2014 | 119,432 | 97,685 | 12,766 | 10.69 | -1.03 | OTC Pink | 4 | ||||||||||||||||||||||
Waterstone Financial, Inc. | WSBF | WI | 1/23/2014 | 1,799,325 | 875,151 | 448,513 | 24.93 | 0.70 | NASDAQ | 11 | ||||||||||||||||||||||
Westbury Bancorp, Inc. | WBB | WI | 4/10/2013 | 594,614 | 472,688 | 86,526 | 14.55 | -0.19 | NASDAQ | 9 |
EXHIBIT V-1
Market Value Characteristics of Public-Traded
Thrifts
As of February 13, 2015
Exhibit V-1
Selected Financial and Pricing Characteristics
Core | Price | Price | Price | Div. | Market | Qtrly | YTD | NPA | Equity | Int. | Effic. | Net Oper. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company | Ticker | St | Price | P/E | P/E | BV | Tang. BV | Assets | Yield | Value | Chng | Chng | Assets | Assets | Assets | Margin | Ratio | Exp. | ROA | ROE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cullman Bancorp, Inc. (MHC) | CULL | AL | 18.00 | NA | NA | 106.9 | 106.9 | 19.86 | 1.39 | 46.2 | -10.00 | -10.00 | 232,483 | NA | 18.57 | NA | 64.66 | 2.66 | 0.98 | 5.33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SouthFirst Bancshares, Inc. | SZBI | AL | 4.15 | NA | NA | 56.4 | NA | 3.25 | 0.00 | 2.9 | 6.41 | 6.41 | 92,407 | NA | 8.72 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BofI Holding, Inc. | BOFI | CA | 91.39 | 20.1 | 18.3 | 308.3 | 308.3 | 26.45 | NA | 1,377.8 | 17.45 | 17.45 | 5,194,721 | 0.70 | 8.67 | 3.93 | 34.40 | 1.53 | 1.56 | 18.31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Broadway Financial Corporation | BYFC | CA | 1.28 | 14.2 | 8.0 | 94.4 | 94.4 | 7.67 | 0.00 | 37.2 | -2.29 | -2.29 | 337,993 | 8.13 | 8.12 | 3.59 | 103.43 | 3.94 | 0.53 | 6.76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First ULB Corp. | FUBP | CA | 15.15 | NA | NM | 80.6 | 79.9 | 7.16 | NA | 21.5 | 0.00 | 0.00 | 352,374 | 2.40 | 8.88 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Malaga Financial Corporation | MLGF | CA | 21.50 | 11.6 | 11.4 | 124.4 | 124.4 | 13.69 | 3.72 | 129.6 | -1.15 | -1.15 | 947,000 | NA | 11.01 | 3.30 | NA | 1.18 | 1.22 | 11.07 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provident Financial Holdings, Inc. | PROV | CA | 15.85 | 18.4 | 15.9 | 98.8 | 98.8 | 12.82 | 2.78 | 142.6 | 4.76 | 4.76 | 1,112,390 | 1.38 | 12.98 | 2.86 | 82.29 | 4.88 | 0.74 | 5.57 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Simplicity Bancorp, Inc. | SMPL | CA | 17.70 | 26.4 | 29.0 | 94.7 | 97.4 | 15.16 | 2.03 | 131.0 | 3.21 | 3.21 | 863,207 | 1.79 | 16.01 | 3.08 | 75.55 | 2.72 | 0.56 | 3.52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First Connecticut Bancorp, Inc. | FBNK | CT | 15.20 | 24.5 | 18.1 | 104.3 | 104.3 | 9.81 | 1.32 | 243.6 | -6.86 | -6.86 | 2,484,352 | NA | 9.40 | 2.90 | 79.46 | 2.51 | 0.41 | 3.98 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Naugatuck Valley Financial Corporation | NVSL | CT | 9.14 | NM | 39.3 | 107.7 | 107.7 | 13.08 | 0.00 | 64.0 | 6.78 | 6.78 | 489,125 | 1.65 | 12.15 | 3.45 | 105.21 | 4.29 | -0.42 | -3.54 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
People's United Financial, Inc. | PBCT | CT | 14.95 | 17.8 | 16.4 | 99.3 | 181.8 | 12.78 | 4.41 | 4,601.6 | -1.52 | -1.52 | 35,997,100 | NA | 12.87 | 3.09 | 64.91 | 2.49 | 0.75 | 5.44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PSB Holdings, Inc. (MHC) | PSBH | CT | 7.62 | 47.6 | 74.5 | 96.2 | 111.0 | 10.46 | 1.57 | 49.8 | -2.06 | -2.06 | 476,321 | NA | 10.88 | 2.29 | 85.46 | 2.39 | 0.20 | 1.84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SI Financial Group, Inc. | SIFI | CT | 11.32 | 31.4 | NA | 91.7 | 104.0 | 10.71 | 1.41 | 144.7 | -0.09 | -0.09 | 1,350,533 | NA | 11.68 | 3.11 | 82.71 | 3.07 | 0.33 | 2.82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United Financial Bancorp, Inc. | UBNK | CT | 12.78 | NM | 13.3 | 103.3 | 127.5 | NA | 3.13 | 652.7 | -11.00 | -11.00 | 5,476,809 | NA | 11.00 | 3.54 | 64.33 | 2.46 | 0.16 | 1.28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
WSFS Financial Corporation | WSFS | DE | 79.54 | 13.8 | 14.4 | 152.9 | 173.3 | 15.41 | 0.75 | 747.9 | 3.45 | 3.45 | 4,853,320 | 1.08 | 10.08 | 3.68 | 62.88 | 3.03 | 1.17 | 12.22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic Coast Financial Corporation | ACFC | FL | 3.95 | 43.9 | 40.2 | 86.9 | 86.9 | NA | 0.00 | 61.3 | -0.50 | -0.50 | 706,498 | NA | 10.24 | 2.58 | 88.94 | 3.01 | 0.19 | 1.89 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EverBank Financial Corp | EVER | FL | 18.26 | 16.6 | NA | 141.4 | 146.0 | 10.52 | 0.88 | 2,258.4 | -4.20 | -4.20 | 21,617,788 | 0.52 | 8.08 | 3.14 | 70.60 | 3.31 | 0.77 | 8.82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sunshine Bancorp, Inc. | SBCP | FL | 12.03 | NA | NA | 82.6 | 82.6 | 22.15 | NA | 50.9 | -1.64 | -1.64 | 229,820 | NA | 26.81 | 2.91 | 118.78 | 3.82 | -1.11 | -5.90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sunshine Financial, Inc. | SSNF | FL | 18.05 | NM | 71.7 | 89.0 | 89.6 | 13.97 | NA | 20.9 | 0.28 | 0.28 | 149,569 | NA | 15.69 | 3.88 | 98.28 | 4.97 | 0.00 | -0.03 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charter Financial Corporation | CHFN | GA | 11.55 | 36.1 | 28.1 | 91.9 | 94.0 | 20.00 | 1.73 | 194.8 | 0.87 | 0.87 | 979,777 | 1.05 | 21.76 | 3.26 | 81.44 | 3.45 | 0.58 | 2.43 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Heritage Financial Group, Inc. | HBOS | GA | 24.84 | 26.1 | 18.7 | 143.4 | 155.0 | 13.46 | 1.13 | 229.5 | -4.09 | -4.09 | 1,705,614 | 0.88 | 9.38 | 4.70 | 80.11 | 4.87 | 0.50 | 5.46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Territorial Bancorp Inc. | TBNK | HI | 21.70 | 14.4 | 15.3 | 99.5 | 99.7 | 12.72 | 2.95 | 215.2 | 0.70 | 0.70 | 1,691,897 | NA | 12.79 | 3.37 | 61.47 | 2.14 | 0.85 | 6.56 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Webster City Federal Bancorp (MHC) | WCFB | IA | 7.65 | NA | NA | 155.1 | 166.7 | 21.39 | 0.00 | 24.3 | 4.08 | 4.08 | 113,693 | NA | 13.79 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AJS Bancorp, Inc. | AJSB | IL | 13.60 | 13.5 | 25.5 | 90.5 | 90.5 | 14.58 | 1.47 | 30.2 | 0.00 | 0.00 | 216,309 | 2.63 | 16.11 | 2.33 | 93.51 | 1.99 | 1.03 | 6.79 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allied First Bancorp, Inc. | AFBA | IL | 0.05 | NA | NA | NM | NM | NA | NA | 0.0 | 0.00 | 0.00 | 119,986 | NA | 1.62 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BankFinancial Corporation | BFIN | IL | 11.75 | 5.8 | 1.7 | 114.7 | 115.7 | 16.92 | 1.36 | 247.9 | -0.93 | -0.93 | 1,465,410 | NA | 14.75 | 3.41 | 80.09 | 3.10 | 2.83 | 22.58 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ben Franklin Financial, Inc. | BFFID | IL | 10.40 | NM | NM | 79.4 | 79.4 | 7.84 | NA | 7.2 | 5.84 | 5.84 | 92,094 | 6.05 | 9.88 | 3.16 | 122.65 | 4.06 | -1.34 | -13.01 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First BancTrust Corporation | FIRT | IL | 16.15 | NA | NA | 86.3 | 87.7 | NA | 0.99 | 34.2 | -0.31 | -0.31 | 433,751 | NA | 9.35 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Great American Bancorp, Inc. | GTPS | IL | 26.00 | 16.7 | 21.7 | 74.3 | 76.5 | 6.92 | 2.15 | 12.2 | 16.85 | 16.85 | 176,704 | NA | 9.31 | 3.06 | 87.27 | 4.05 | 0.42 | 4.45 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Harvard Illinois Bancorp, Inc. | HARI | IL | 10.50 | NA | NA | NA | NA | NA | NA | 8.8 | -26.06 | -26.06 | NA | NA | NA | NA | NA | NA | NA | -58.59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
IF Bancorp, Inc. | IROQ | IL | 16.70 | 19.6 | 20.8 | 86.6 | 86.6 | 13.18 | 0.60 | 72.5 | -1.24 | -1.24 | 549,833 | 1.10 | 15.23 | 2.93 | 68.17 | 2.34 | 0.62 | 4.18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jacksonville Bancorp, Inc. | JXSB | IL | 23.00 | 13.9 | 17.9 | 91.9 | 97.9 | 13.26 | 1.39 | 41.4 | 0.00 | 0.00 | 311,900 | NA | 14.43 | 3.61 | 73.20 | 3.28 | 0.95 | 6.81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Midland Capital Holdings Corporation | MCPH | IL | 11.82 | NM | NM | 36.1 | 36.1 | 3.66 | 1.35 | 4.4 | -0.25 | -0.25 | 120,197 | NA | 10.16 | 2.86 | 102.76 | 3.08 | -0.18 | -1.77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mutual Federal Bancorp, Inc. (MHC) | MFDB | IL | 2.55 | NA | NA | 56.5 | NA | 10.42 | 0.00 | 8.4 | 13.33 | 13.33 | 80,541 | NA | 18.45 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ottawa Savings Bancorp, Inc. (MHC) | OTTW | IL | 10.00 | 22.2 | 24.4 | 94.5 | 94.5 | 13.17 | 0.00 | 28.9 | 0.00 | 0.00 | 160,769 | 4.69 | 13.93 | 3.58 | 62.86 | 2.34 | 0.57 | 4.43 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Park Bancorp, Inc. | PFED | IL | 0.49 | NM | NM | 9.8 | 9.8 | 0.36 | 0.00 | 0.6 | -14.04 | -14.04 | 163,670 | 6.27 | 3.63 | 2.76 | 142.08 | 4.10 | -1.04 | -26.15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Royal Financial, Inc. | RYFL | IL | 8.00 | 30.8 | 50.0 | 77.5 | 77.5 | 15.66 | NA | 20.1 | 4.58 | 4.58 | 128,043 | NA | 20.20 | 4.14 | 83.24 | 3.36 | 0.48 | 2.47 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sugar Creek Financial Corp. | SUGR | IL | 9.90 | 31.8 | 30.9 | 71.0 | 71.0 | 10.24 | 0.00 | 9.4 | 4.21 | 4.21 | 91,740 | 2.29 | 14.43 | 2.98 | 84.56 | 2.69 | 0.31 | 2.35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DSA Financial Corporation | DSFN | IN | 10.60 | 17.7 | 18.7 | 95.0 | 95.0 | 14.50 | 4.15 | 17.4 | 1.92 | 1.92 | 119,697 | 0.99 | 15.26 | NA | 69.18 | 2.53 | 0.83 | 5.54 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FFW Corporation | FFWC | IN | 23.00 | 6.6 | 9.5 | 87.6 | 91.3 | 7.77 | 2.35 | 26.2 | 6.98 | 6.98 | 341,177 | NA | 10.11 | 3.49 | 67.34 | 2.88 | 1.27 | 12.92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fidelity Federal Bancorp | FDLB | IN | 6.70 | NA | NA | 64.5 | NA | 4.03 | 0.00 | 7.4 | 0.00 | 0.00 | 195,651 | NA | 11.42 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First Capital, Inc. | FCAP | IN | 24.50 | 12.1 | NA | 119.5 | 132.2 | NA | 3.43 | 67.1 | 0.66 | 0.66 | 472,761 | 1.08 | NA | 3.99 | 63.83 | 3.08 | 1.23 | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
La Porte Bancorp, Inc. | LPSB | IN | 12.58 | 15.5 | 16.4 | 86.6 | 96.8 | 13.76 | 1.27 | 71.4 | 0.72 | 0.72 | 518,616 | NA | 15.89 | 3.17 | 71.48 | 2.42 | 0.86 | 5.38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mid-Southern Savings Bank, FSB (MHC) | MSVB | IN | 9.65 | NA | NA | 69.5 | 69.5 | NA | 0.00 | 14.2 | -3.50 | -3.50 | 192,991 | 5.83 | 10.66 | 3.17 | 73.65 | 2.76 | -0.23 | -2.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NorthWest Indiana Bancorp | NWIN | IN | 27.50 | 10.6 | 11.3 | 102.7 | 105.0 | 10.09 | 3.64 | 78.2 | 3.77 | 3.77 | 775,044 | 1.63 | 9.83 | 3.81 | 68.06 | 2.78 | 0.98 | 10.27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Peoples Bancorp, Inc. | PBNI | IN | 25.75 | 17.4 | NA | 97.1 | 100.9 | 12.24 | 3.11 | 59.5 | -0.19 | -0.19 | 486,555 | NA | 12.60 | NA | 73.16 | 2.53 | 0.74 | 5.75 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Third Century Bancorp | TDCB | IN | 7.75 | 43.1 | 22.9 | NA | NA | NA | 1.55 | 9.9 | 1.17 | 1.17 | 123,938 | 1.49 | 12.54 | 3.36 | 92.30 | 3.49 | 0.19 | 1.55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United Community Bancorp | UCBA | IN | 12.16 | 27.6 | NA | 79.6 | 85.0 | 11.07 | 1.97 | 56.4 | 4.56 | 4.56 | 508,938 | NA | 13.91 | 2.58 | 82.03 | 2.53 | 0.40 | 2.88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
West End Indiana Bancshares, Inc. | WEIN | IN | 20.30 | 21.6 | 15.4 | 90.7 | 90.7 | 10.78 | 1.18 | 27.4 | -2.40 | -2.40 | 257,693 | NA | 11.88 | 4.08 | 70.08 | 3.13 | 0.47 | 4.07 |
Exhibit V-1
Selected Financial and Pricing Characteristics
Core | Price | Price | Price | Div. | Market | Qtrly | YTD | NPA | Equity | Int. | Effic. | Net Oper. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company | Ticker | St | Price | P/E | P/E | BV | Tang. BV | Assets | Yield | Value | Chng | Chng | Assets | Assets | Assets | Margin | Ratio | Exp. | ROA | ROE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitol Federal Financial, Inc. | CFFN | KS | 12.74 | 22.0 | 21.2 | 122.2 | 122.2 | 19.79 | 2.67 | 1,791.9 | -0.31 | -0.31 | 9,056,356 | 0.62 | 16.19 | 1.94 | 43.23 | 0.91 | 0.81 | 5.29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First Independence Corporation | FFSL | KS | 14.50 | 21.0 | 14.5 | 87.2 | 87.2 | 8.91 | 0.00 | 12.1 | -17.61 | -17.61 | 135,958 | NA | 10.21 | 3.25 | 86.24 | 3.46 | 0.42 | 4.29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kentucky First Federal Bancorp (MHC) | KFFB | KY | 8.02 | 34.9 | NA | 100.9 | 128.7 | 22.38 | 4.99 | 67.8 | -1.83 | -1.83 | 303,114 | NA | 22.17 | NA | 70.50 | 2.83 | 0.63 | 2.84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Poage Bankshares, Inc. | PBSK | KY | 14.95 | NM | 15.4 | 86.9 | 89.9 | 14.09 | 1.34 | 58.0 | 0.54 | 0.54 | 411,774 | 0.97 | 16.22 | 3.92 | 82.19 | 3.46 | 0.22 | 1.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Century Next Financial Corporation | CTUY | LA | 18.00 | 14.3 | NA | 86.4 | 86.4 | 11.00 | NA | 18.7 | 0.00 | 0.00 | 169,697 | NA | 12.74 | NA | 73.04 | 3.48 | 0.80 | 5.91 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FPB Financial Corp. | FPBF | LA | 16.10 | 9.4 | 8.6 | 83.4 | 83.4 | 8.57 | 1.74 | 19.4 | 0.63 | 0.63 | 226,672 | 1.99 | 10.28 | 4.88 | 74.08 | 4.05 | 0.95 | 9.44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hibernia Bancorp, Inc. | HIBE | LA | 17.40 | NM | NA | 76.0 | 76.0 | 15.76 | NA | 16.6 | 0.00 | 0.00 | 105,445 | NA | 20.75 | 3.36 | 91.65 | 3.04 | 0.10 | 0.48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Bancorp, Inc. | HBCP | LA | 21.42 | 15.1 | 13.4 | 99.0 | 104.1 | 12.49 | 1.31 | 152.6 | -6.63 | -6.63 | 1,221,415 | 1.99 | 12.62 | 4.66 | 65.00 | 3.25 | 0.81 | 6.67 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Federal Bancorp, Inc. of Louisiana | HFBL | LA | 19.45 | 13.1 | 11.9 | 98.4 | 98.4 | 12.30 | 1.44 | 42.1 | -0.41 | -0.41 | 346,307 | NA | 12.50 | 3.87 | 66.78 | 2.88 | 0.95 | 6.90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Louisiana Bancorp, Inc. | LABC | LA | 20.59 | 19.4 | 17.2 | 102.3 | 102.3 | 17.92 | 1.36 | 59.7 | -8.28 | -8.28 | 333,346 | NA | 17.52 | 3.23 | 65.01 | 2.30 | 0.88 | 4.87 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State Investors Bancorp, Inc. | SIBC | LA | 21.10 | 39.8 | 29.3 | 115.9 | 115.9 | 17.91 | NA | 48.7 | 1.83 | 1.83 | 271,900 | NA | 15.46 | 3.52 | 75.26 | 2.57 | 0.48 | 3.06 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Blue Hills Bancorp, Inc. | BHBK | MA | 12.97 | NA | NA | 89.7 | 92.7 | 21.36 | NA | 369.2 | -4.49 | -4.49 | 1,728,148 | 0.27 | 23.82 | 2.78 | 80.82 | 2.52 | -0.01 | -0.07 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BSB Bancorp, Inc. | BLMT | MA | 18.88 | 38.5 | 29.5 | 125.0 | 125.0 | 12.01 | NA | 171.2 | 1.34 | 1.34 | 1,425,550 | NA | 9.61 | 2.64 | 75.91 | 2.15 | 0.35 | 3.24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chicopee Bancorp, Inc. | CBNK | MA | 16.33 | NM | 68.0 | 97.7 | 97.7 | 13.46 | 1.71 | 86.1 | -2.51 | -2.51 | 639,222 | 1.92 | 13.79 | 3.65 | 77.99 | 3.15 | -0.10 | -0.64 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Georgetown Bancorp, Inc. | GTWN | MA | 17.55 | 20.6 | 17.6 | 104.4 | 104.4 | 11.83 | 0.97 | 32.1 | 6.69 | 6.69 | 271,020 | NA | 11.33 | 3.79 | 77.31 | 3.14 | 0.55 | 5.04 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hampden Bancorp, Inc. | HBNK | MA | 21.40 | 31.9 | 35.1 | 138.3 | 138.3 | 16.68 | 1.50 | 118.9 | 0.90 | 0.90 | 711,101 | 1.36 | 12.05 | 3.11 | 69.62 | 2.38 | 0.51 | 4.20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hingham Institution for Savings | HIFS | MA | 87.30 | 8.4 | NA | 152.9 | 152.9 | 11.97 | 1.28 | 185.8 | 0.33 | 0.33 | 1,552,205 | NA | 7.83 | 3.23 | 41.53 | 1.37 | 1.52 | 19.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Meetinghouse Bancorp, Inc. | MTGB | MA | 12.56 | NM | 157.0 | 81.7 | 81.7 | 7.82 | NA | 8.3 | -4.85 | -4.85 | 109,163 | 0.02 | 9.57 | 3.08 | 103.88 | 3.88 | -0.15 | -1.08 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Melrose Bancorp, Inc. | MELR | MA | 13.99 | NA | NA | NA | NA | NA | NA | 39.6 | 5.66 | 5.66 | 212,698 | NA | 10.17 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Meridian Bancorp, Inc. | EBSB | MA | 12.34 | 29.4 | 35.0 | 116.9 | 119.7 | 20.59 | NA | 675.1 | 9.98 | 9.98 | 3,278,526 | NA | 17.62 | 3.19 | 66.15 | 2.26 | 0.75 | 5.69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Peoples Federal Bancshares, Inc. | PEOP | MA | 21.62 | NM | 139.5 | 129.1 | 129.1 | 22.59 | 0.93 | 134.9 | -4.08 | -4.08 | 597,020 | NA | 17.50 | 3.13 | 80.43 | 2.58 | 0.17 | 1.01 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pilgrim Bancshares, Inc. | PLRM | MA | 11.00 | NA | NA | NA | NA | NA | NA | 24.7 | 0.73 | 0.73 | 194,530 | 3.50 | 6.71 | NA | 84.10 | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wellesley Bancorp, Inc. | WEBK | MA | 18.75 | 24.4 | NA | 93.4 | 93.4 | 8.62 | 0.53 | 46.1 | -2.30 | -2.30 | 535,115 | NA | 9.22 | 3.37 | 79.38 | 2.77 | 0.36 | 3.71 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Westfield Financial, Inc. | WFD | MA | 7.41 | 21.8 | 20.9 | 97.4 | 97.4 | 10.51 | 1.62 | 138.8 | 0.95 | 0.95 | 1,320,096 | NA | 10.80 | 2.60 | 72.44 | 2.01 | 0.48 | 4.18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
American Bank Holdings, Inc. | ABKH | MD | 11,100.00 | NA | NA | 43.3 | NA | 4.36 | 0.00 | 19.9 | -7.50 | -7.50 | 456,676 | NA | 10.06 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BV Financial, Inc. (MHC) | BVFL | MD | 6.80 | 21.9 | NA | 98.1 | 98.9 | 11.92 | 0.00 | 20.4 | 6.25 | 6.25 | 171,093 | NA | 12.15 | NA | 75.13 | 2.87 | 0.45 | 3.94 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Colombo Bank | IFSB | MD | 0.39 | NA | NM | 657.4 | 657.4 | 67.27 | 0.00 | 134.3 | 25.81 | 25.81 | 199,575 | 5.03 | 10.23 | 4.76 | 132.35 | 7.65 | -1.72 | -17.02 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fraternity Community Bancorp, Inc. | FRTR | MD | 16.00 | NM | NM | 81.2 | 81.2 | 13.57 | NA | 22.1 | 1.27 | 1.27 | 162,812 | 3.44 | 16.72 | 2.79 | 102.89 | 2.90 | -0.16 | -0.99 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hamilton Bancorp, Inc. | HBK | MD | 12.89 | NM | 224.4 | 72.8 | 76.4 | 15.24 | NA | 44.1 | -0.85 | -0.85 | 288,655 | 3.04 | 20.93 | 2.84 | 106.53 | 3.21 | -0.25 | -1.24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MB Bancorp, Inc. | MBCQ | MD | 10.80 | NA | NA | NA | NA | NA | NA | 22.9 | 2.37 | 2.37 | 136,116 | 7.08 | 12.75 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Severn Bancorp, Inc. | SVBI | MD | 4.45 | NM | NA | 78.3 | 78.8 | 5.97 | 0.00 | 44.8 | -1.96 | -1.96 | 776,681 | 5.47 | 10.79 | 3.30 | 86.46 | 3.07 | 0.37 | 3.54 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Auburn Bancorp, Inc. (MHC) | ABBB | ME | 8.00 | NM | 20.1 | 69.9 | 69.9 | 5.51 | NA | 4.0 | 0.00 | 0.00 | 73,041 | 3.47 | 7.89 | 3.79 | 89.46 | 3.47 | -0.49 | -5.80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Edgewater Bancorp, Inc. | EGDW | MI | 10.10 | NA | NM | 50.1 | 50.1 | 5.77 | NA | 6.7 | -0.49 | -0.49 | 116,958 | 4.28 | 11.51 | 3.29 | 115.78 | 4.57 | -0.88 | -9.40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First Federal of Northern Michigan Bancorp, Inc. | FFNM | MI | 5.45 | 10.5 | 8.3 | 67.8 | 71.0 | 6.51 | 1.47 | 20.3 | -0.73 | -0.73 | 311,923 | 1.23 | 9.61 | 3.46 | 91.62 | 3.67 | 0.77 | 7.05 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Flagstar Bancorp, Inc. | FBC | MI | 14.85 | NM | NA | 75.6 | 75.6 | 8.74 | 0.00 | 836.5 | -5.59 | -5.59 | 9,839,851 | NA | 13.95 | 2.92 | 90.19 | 5.54 | -0.70 | -4.94 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sturgis Bancorp, Inc. | STBI | MI | 10.00 | NA | NA | 68.7 | 83.0 | NA | 1.20 | 20.7 | 12.36 | 12.36 | 312,455 | NA | 9.71 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wolverine Bancorp, Inc. | WBKC | MI | 23.75 | 29.3 | 17.0 | 87.8 | 87.8 | 15.94 | NA | 53.9 | -0.84 | -0.84 | 338,671 | 1.68 | 18.15 | 3.57 | 69.01 | 2.73 | 0.55 | 2.84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HMN Financial, Inc. | HMNF | MN | 12.01 | 9.8 | 10.0 | 81.3 | 81.3 | 9.46 | 0.00 | 53.7 | -3.15 | -3.15 | 577,426 | NA | 13.16 | 3.48 | 84.68 | 3.51 | 1.21 | 9.12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redwood Financial, Inc. | REDW | MN | 29.75 | NA | �� | NA | 70.1 | 101.2 | 6.00 | 0.00 | 13.3 | 0.00 | 0.00 | 227,713 | NA | 11.14 | NA | NA | NA | NA | NA | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
CCSB Financial Corp. | CCFC | MO | 7.35 | 52.5 | 91.9 | 54.7 | 54.7 | 6.57 | NA | 5.7 | 5.00 | 5.00 | 87,263 | NA | 12.02 | 3.55 | 95.69 | 3.69 | 0.11 | 0.97 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Farmers & Merchants Bancorp, Inc. | FMBA | MO | 20.00 | NA | NA | 90.4 | 90.5 | 8.82 | NA | 11.2 | 0.00 | 0.00 | 126,650 | NA | 9.75 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liberty Bancorp, Inc. | LBCP | MO | 15.50 | NA | NA | 90.9 | 97.7 | NA | 0.97 | 46.1 | 0.00 | 0.00 | 468,755 | 4.18 | 13.97 | 4.44 | 63.48 | 3.06 | 0.85 | 6.33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASB Financial, Inc. | NASB | MO | 28.60 | 11.7 | NA | 105.8 | 107.0 | 16.36 | 1.40 | 212.8 | 18.18 | 18.18 | 1,300,256 | NA | 15.46 | 3.78 | 72.90 | 5.04 | 1.58 | 9.44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pulaski Financial Corp. | PULB | MO | 11.79 | 12.4 | 11.3 | 120.5 | 124.8 | 9.67 | 3.22 | 142.2 | -4.38 | -4.38 | 1,426,456 | 3.35 | 8.03 | 3.52 | 65.69 | 2.68 | 0.89 | 10.34 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarry City Savings and Loan Association | QRRY | MO | 11.90 | 21.1 | 12.4 | 61.3 | 61.3 | 10.38 | NA | 4.9 | 10.70 | 10.70 | 46,757 | 0.68 | 16.94 | 4.07 | 80.31 | 3.64 | 0.52 | 2.99 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASB Bancorp, Inc. | ASBB | NC | 19.90 | 33.7 | 31.2 | 92.3 | 92.3 | 11.46 | NA | 87.1 | -7.44 | -7.44 | 760,050 | 2.15 | 12.42 | 2.82 | 88.55 | 3.14 | 0.33 | 2.51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entegra Financial Corp. | ENFC | NC | 15.40 | 16.9 | NA | 93.9 | 93.9 | 11.16 | NA | 100.8 | 7.02 | 7.02 | 903,648 | NA | 11.88 | 3.33 | 74.42 | 2.85 | 0.71 | 10.59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
KS Bancorp, Inc. | KSBI | NC | 13.00 | 17.1 | 10.9 | 78.2 | 78.2 | 5.35 | 1.85 | 17.0 | 18.18 | 18.18 | 318,451 | NA | 6.84 | 3.42 | 83.83 | 3.33 | 0.41 | 5.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LifeStore Financial Group (MHC) | LSFG | NC | 10.80 | 11.4 | NA | 60.1 | 69.1 | 4.23 | 0.00 | 11.0 | 0.00 | 0.00 | 260,076 | NA | 7.04 | 3.39 | 79.64 | 4.69 | 0.38 | 5.44 |
Exhibit V-1
Selected Financial and Pricing Characteristics
Core | Price | Price | Price | Div. | Market | Qtrly | YTD | NPA | Equity | Int. | Effic. | Net Oper. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company | Ticker | St | Price | P/E | P/E | BV | Tang. BV | Assets | Yield | Value | Chng | Chng | Assets | Assets | Assets | Margin | Ratio | Exp. | ROA | ROE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Little Bank, Inc. | LTLB | NC | 11.88 | 12.5 | NA | 112.2 | 112.2 | 10.77 | 1.26 | 36.5 | -6.31 | -6.31 | 339,169 | NA | 9.59 | NA | 63.87 | 2.46 | 0.88 | 9.29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wake Forest Bancshares, Inc. (MHC) | WAKE | NC | 14.85 | 19.2 | 18.6 | 76.4 | 76.4 | 15.18 | 1.62 | 17.1 | -7.19 | -7.19 | 112,533 | 0.92 | 19.86 | 2.76 | 51.55 | 1.38 | 0.78 | 4.01 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equitable Financial Corp. (MHC) | EQFC | NE | 6.00 | NA | NA | 97.0 | NA | 10.50 | NA | 19.1 | 6.76 | 6.76 | 181,939 | NA | 10.82 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Madison County Financial, Inc. | MCBK | NE | 20.10 | 19.7 | 15.8 | 98.8 | 100.5 | 20.22 | 1.19 | 61.0 | 3.93 | 3.93 | 301,929 | NA | 20.47 | 3.80 | 57.19 | 2.52 | 1.01 | 4.69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guaranty Bancorp, Inc. | GUAA | NH | 18.50 | 6.0 | NA | 55.4 | 55.4 | 4.65 | 0.00 | 18.0 | 0.00 | 0.00 | 393,898 | 0.87 | 10.02 | 3.50 | 81.94 | 3.25 | 0.77 | 7.93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Hampshire Thrift Bancshares, Inc. | NHTB | NH | 15.43 | 13.0 | 10.7 | 96.7 | 163.5 | 8.52 | 3.37 | 127.4 | -1.22 | -1.22 | 1,503,786 | NA | 9.30 | 3.08 | 74.59 | 3.17 | 0.68 | 6.81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cape Bancorp, Inc. | CBNJ | NJ | 8.82 | 14.5 | 21.2 | 71.8 | 85.7 | 9.37 | 2.72 | 101.2 | -6.27 | -6.27 | 1,079,894 | NA | 13.05 | 3.58 | 64.19 | 2.53 | 0.62 | 4.80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Clifton Bancorp Inc. | CSBK | NJ | 13.46 | 51.8 | 42.1 | 100.4 | 100.4 | 30.49 | 1.78 | 365.5 | -0.96 | -0.96 | 1,198,171 | NA | 30.36 | 2.38 | 61.47 | 1.39 | 0.54 | 2.09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Colonial Financial Services, Inc. | COBK | NJ | 13.41 | 49.7 | 86.9 | 82.4 | 82.4 | 9.37 | NA | 51.9 | 0.07 | 0.07 | 552,709 | 3.74 | 11.36 | 2.57 | 82.16 | 2.37 | 0.18 | 1.64 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Delanco Bancorp, Inc. | DLNO | NJ | 7.00 | NM | NM | 48.5 | 48.5 | 5.22 | NA | 6.6 | 1.16 | 1.16 | 126,720 | 6.17 | 10.76 | 3.30 | 91.42 | 3.44 | -0.73 | -6.86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hudson City Bancorp, Inc. | HCBK | NJ | 9.92 | 31.0 | 123.8 | 109.7 | 113.3 | 14.35 | 1.61 | 5,246.8 | -1.98 | -1.98 | 36,569,082 | NA | 13.08 | 1.19 | 65.01 | 0.77 | 0.42 | 3.28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investors Bancorp, Inc. | ISBC | NJ | 11.70 | 30.8 | 24.7 | 117.1 | 121.2 | 22.31 | 1.71 | 4,188.8 | 4.23 | 4.23 | 18,773,639 | 0.81 | 19.06 | 3.23 | 54.87 | 1.83 | 0.76 | 4.71 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kearny Financial Corp. (MHC) | KRNY | NJ | 13.48 | NM | 99.0 | 184.1 | 236.6 | 25.60 | 0.00 | 908.2 | -1.96 | -1.96 | 3,547,869 | NA | 13.90 | 2.40 | 75.83 | 1.85 | 0.28 | 2.01 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lincoln Park Bancorp (MHC) | LPBC | NJ | 7.00 | 11.5 | 13.5 | 73.8 | 74.0 | 5.61 | 0.00 | 12.6 | 4.48 | 4.48 | 224,925 | 1.39 | 7.60 | NA | 63.19 | 1.69 | 0.48 | 6.31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Magyar Bancorp, Inc. (MHC) | MGYR | NJ | 8.45 | NM | 78.6 | 106.4 | 106.4 | 9.37 | NA | 49.1 | 0.12 | 0.12 | 524,545 | NA | 8.80 | 3.32 | 84.38 | 2.88 | 0.12 | 1.37 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MSB Financial Corp. (MHC) | MSBF | NJ | 10.25 | 51.3 | 51.3 | 124.9 | 124.9 | 14.86 | 0.00 | 51.4 | 0.00 | 0.00 | 345,491 | 5.65 | 11.90 | 2.97 | 80.34 | 2.40 | 0.28 | 2.39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Northfield Bancorp, Inc. | NFBK | NJ | 14.53 | 35.4 | 33.3 | 118.4 | 121.8 | 23.28 | 1.93 | 703.3 | -1.82 | -1.82 | 3,020,869 | 1.29 | 19.66 | 2.97 | 60.04 | 1.84 | 0.73 | 3.07 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ocean Shore Holding Co. | OSHC | NJ | 14.07 | 14.4 | NA | 85.0 | 91.1 | 8.78 | 1.71 | 90.0 | -1.75 | -1.75 | 1,024,754 | NA | 10.33 | 3.15 | 67.72 | 2.11 | 0.61 | 5.90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OceanFirst Financial Corp. | OCFC | NJ | 16.85 | 14.2 | 14.2 | 130.5 | 130.5 | 12.08 | 3.09 | 284.8 | -1.69 | -1.69 | 2,356,714 | 1.89 | 9.26 | 3.28 | 64.04 | 2.50 | 0.86 | 9.18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oritani Financial Corp. | ORIT | NJ | 14.48 | 15.1 | 15.1 | 126.8 | 126.8 | 19.80 | 4.83 | 639.1 | -5.97 | -5.97 | 3,250,934 | 0.67 | 15.62 | 3.30 | 38.31 | 1.32 | 1.31 | 7.81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provident Financial Services, Inc. | PFS | NJ | 18.64 | 15.3 | 13.4 | 105.7 | 166.8 | 14.19 | 3.43 | 1,209.8 | 3.21 | 3.21 | 8,523,377 | NA | 13.42 | 3.27 | 58.00 | 2.01 | 0.92 | 6.75 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wawel Bank (MHC) | WAWL | NJ | 3.50 | NM | NM | 62.3 | 62.3 | 9.81 | NA | 7.5 | 7.36 | 7.36 | 76,513 | 4.86 | 15.76 | 3.66 | 218.91 | 5.68 | -1.56 | -9.70 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Alamogordo Financial Corp. (MHC) | ALMG | NM | 16.00 | 14.4 | 5.5 | 87.9 | 89.3 | 10.58 | 0.00 | 26.9 | 6.67 | 6.67 | 253,968 | 1.53 | 12.04 | 3.71 | 100.27 | 5.40 | 0.99 | 7.45 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Astoria Financial Corporation | AF | NY | 13.18 | 15.0 | 15.7 | 90.8 | 104.1 | 8.49 | 1.21 | 1,317.2 | -1.35 | -1.35 | 15,640,021 | NA | 10.10 | 2.30 | 71.64 | 1.82 | 0.61 | 6.12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carver Bancorp, Inc. | CARV | NY | 5.68 | NM | 20.2 | 215.9 | 215.9 | 3.50 | 0.00 | 21.0 | -9.12 | -9.12 | 644,373 | 3.07 | 8.41 | 3.05 | 112.16 | 4.41 | -0.11 | -1.32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CMS Bancorp, Inc. | CMSB | NY | 13.19 | 50.7 | 27.9 | 109.0 | 109.0 | 9.23 | NA | 24.6 | 2.41 | 2.41 | 267,832 | NA | 8.98 | 3.49 | 83.93 | 2.95 | 0.19 | 2.21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dime Community Bancshares, Inc. | DCOM | NY | 15.63 | 12.7 | 12.5 | 125.3 | 142.6 | 12.81 | 3.58 | 576.0 | -3.99 | -3.99 | 4,497,107 | 0.49 | 10.22 | 3.03 | 46.29 | 1.42 | 1.03 | 9.83 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FSB Community Bankshares, Inc. (MHC) | FSBC | NY | 9.15 | 24.1 | NA | NA | NA | NA | NA | 16.3 | -5.18 | -5.18 | 245,960 | NA | 8.62 | 2.95 | 88.39 | 3.44 | 0.27 | 3.22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gouverneur Bancorp, Inc. (MHC) | GOVB | NY | 13.75 | 17.6 | 22.4 | 108.4 | 108.4 | 21.51 | 2.47 | 30.6 | 14.58 | 14.58 | 142,190 | NA | 19.83 | NA | 63.55 | 3.02 | 1.19 | 6.46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Greene County Bancorp, Inc. (MHC) | GCBC | NY | 29.50 | 18.8 | 16.2 | 193.1 | 193.1 | 17.47 | 2.44 | 124.6 | -1.99 | -1.99 | 712,422 | 1.11 | 9.05 | 3.37 | 61.15 | 2.52 | 0.97 | 10.83 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hometown Bancorp, Inc. (MHC) | HTWC | NY | 1.20 | NM | NM | 32.5 | 34.7 | 2.14 | 0.00 | 2.8 | 9.09 | 9.09 | 130,686 | NA | 6.57 | 4.03 | 126.82 | 5.87 | -3.12 | -41.37 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lake Shore Bancorp, Inc. (MHC) | LSBK | NY | 13.50 | 24.5 | NA | 111.2 | 111.2 | 16.34 | 2.07 | 79.7 | -0.44 | -0.44 | 487,471 | NA | 14.69 | 3.21 | 76.46 | 2.63 | 0.65 | 4.58 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New York Community Bancorp, Inc. | NYCB | NY | 16.37 | 15.0 | 14.1 | 125.3 | 217.1 | 14.92 | 6.11 | 7,245.2 | 2.31 | 2.31 | 48,559,217 | NA | 11.91 | 2.66 | 43.74 | 1.22 | 1.01 | 8.41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NorthEast Community Bancorp, Inc. (MHC) | NECB | NY | 6.96 | 69.6 | 56.5 | 83.2 | 84.0 | 17.16 | 1.72 | 86.1 | -3.60 | -3.60 | 502,062 | 4.97 | 20.63 | 3.72 | 88.82 | 3.48 | 0.26 | 1.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oneida Financial Corp. | ONFC | NY | 13.15 | 18.0 | 19.7 | 97.4 | 134.8 | NA | 3.65 | 92.3 | 1.15 | 1.15 | 798,169 | NA | 12.01 | 2.95 | 86.95 | 5.72 | 0.66 | 5.44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pathfinder Bancorp, Inc. | PBHC | NY | 9.87 | 15.7 | NA | 77.0 | 83.8 | 7.84 | 1.22 | 42.9 | 0.67 | 0.67 | 561,024 | NA | 12.34 | 3.40 | 76.45 | 2.92 | 0.52 | 5.89 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Patriot Federal Bank | PFDB | NY | 5.80 | NA | NM | 74.1 | 75.3 | 6.94 | 0.00 | 8.5 | 9.43 | 9.43 | 122,365 | 0.98 | 9.36 | 3.51 | 90.42 | 3.25 | -0.01 | -0.08 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Seneca-Cayuga Bancorp, Inc. (MHC) | SCAY | NY | 10.60 | 12.0 | NA | 98.1 | 99.4 | 8.89 | NA | 24.5 | 4.95 | 4.95 | 281,022 | NA | 10.68 | 4.22 | 74.21 | 3.34 | 0.74 | 6.94 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sunnyside Bancorp, Inc. | SNNY | NY | 9.95 | NA | NM | 65.2 | 65.2 | 8.35 | NA | 7.9 | 0.40 | 0.40 | 94,505 | 0.45 | 12.81 | 2.59 | 119.09 | 3.12 | -0.25 | -1.89 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TrustCo Bank Corp NY | TRST | NY | 6.82 | 14.6 | 15.5 | 164.4 | 164.7 | 13.93 | 3.85 | 646.9 | -6.06 | -6.06 | 4,644,439 | NA | 8.47 | 3.16 | 52.55 | 1.85 | 0.97 | 11.54 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASB Financial Corp. | ASBN | OH | 12.81 | 20.0 | 20.0 | 97.1 | 107.9 | 10.27 | 5.62 | 25.4 | -1.44 | -1.44 | 246,837 | 1.37 | 10.58 | 3.49 | 83.52 | 3.44 | 0.50 | 4.84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Central Federal Corporation | CFBK | OH | 1.31 | 26.2 | 32.8 | 90.2 | 90.2 | 7.00 | 0.00 | 20.7 | 7.38 | 7.38 | 307,630 | 2.77 | 11.17 | 3.08 | 97.85 | 3.39 | 0.37 | 3.89 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cheviot Financial Corp. | CHEV | OH | 14.44 | 30.7 | 35.9 | 100.9 | 115.3 | 16.98 | 2.49 | 97.0 | 1.62 | 1.62 | 571,237 | NA | 16.84 | 2.99 | 72.80 | 2.28 | 0.53 | 3.28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Community Investors Bancorp, Inc. | CIBN | OH | 9.74 | 14.3 | 8.4 | 70.4 | 70.4 | 5.89 | 2.05 | 7.7 | 4.17 | 4.17 | 131,599 | 2.84 | 8.37 | 3.93 | 77.16 | 3.59 | 0.42 | 5.03 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First Defiance Financial Corp. | FDEF | OH | 31.98 | 13.4 | 13.2 | 105.9 | 137.3 | 13.55 | 2.19 | 294.5 | -6.11 | -6.11 | 2,178,952 | 2.52 | 12.80 | 3.67 | 64.04 | 3.05 | 1.10 | 8.59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First Niles Financial, Inc. | FNFI | OH | 9.15 | 45.8 | NM | 87.1 | 87.1 | 10.69 | 2.19 | 10.3 | -2.66 | -2.66 | 96,437 | 1.79 | 12.39 | 1.91 | 101.11 | 1.98 | 0.23 | 1.77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Greenville Federal Financial Corporation (MHC) | GVFF | OH | 8.80 | 20.0 | NA | 91.7 | 91.7 | 12.05 | 3.18 | 18.3 | 1.50 | 1.50 | 152,215 | NA | 13.13 | NA | 79.42 | 3.07 | 0.59 | 4.60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home City Financial Corporation | HCFL | OH | 16.75 | 10.9 | 10.5 | 85.4 | 85.4 | 8.87 | 1.91 | 13.4 | 3.08 | 3.08 | 151,552 | NA | 10.40 | 3.64 | 62.94 | 2.31 | 0.87 | 8.35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Loan Financial Corporation | HLFN | OH | 20.00 | 9.7 | 10.6 | 120.7 | 120.7 | 15.66 | 4.40 | 27.9 | 2.56 | 2.56 | 178,355 | NA | 12.98 | NA | 51.60 | 2.65 | 1.68 | 12.74 |
Exhibit V-1
Selected Financial and Pricing Characteristics
Core | Price | Price | Price | Div. | Market | Qtrly | YTD | NPA | Equity | Int. | Effic. | Net Oper. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company | Ticker | St | Price | P/E | P/E | BV | Tang. BV | Assets | Yield | Value | Chng | Chng | Assets | Assets | Assets | Margin | Ratio | Exp. | ROA | ROE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MW Bancorp, Inc. | MWBC | OH | 12.00 | NA | NA | NA | NA | NA | NA | 10.5 | NA | NA | 96,006 | NA | 9.29 | NA | 100.71 | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Peoples-Sidney Financial Corporation | PPSF | OH | 8.00 | NM | 17.1 | 66.9 | 66.9 | 8.99 | 4.00 | 10.0 | -4.76 | -4.76 | 110,781 | 4.16 | 13.43 | 3.78 | 78.08 | 3.17 | -0.06 | -0.46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Perpetual Federal Savings Bank | PFOH | OH | 22.00 | 19.5 | 11.2 | 87.8 | 87.8 | 15.56 | 3.45 | 54.3 | 4.76 | 4.76 | 349,143 | 3.70 | 17.72 | 3.26 | 29.84 | 0.99 | 0.80 | 4.57 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TFS Financial Corporation (MHC) | TFSL | OH | 14.47 | 65.8 | NA | 238.8 | 240.1 | 35.87 | 1.94 | 4,316.6 | -2.79 | -2.79 | 12,067,843 | 2.13 | 15.02 | 2.34 | 57.45 | 1.50 | 0.56 | 3.57 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United Community Financial Corp. | UCFC | OH | 5.28 | 5.3 | 22.3 | 108.3 | 108.3 | 14.18 | 0.76 | 260.0 | -1.68 | -1.68 | 1,833,550 | NA | 13.10 | 3.10 | 84.94 | 3.09 | 2.82 | 23.38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Versailles Financial Corporation | VERF | OH | 15.75 | 68.5 | NA | 55.5 | 55.5 | 12.17 | NA | 6.9 | -6.80 | -6.80 | 52,513 | NA | 21.91 | 3.18 | 89.84 | 2.76 | 0.19 | 0.83 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wayne Savings Bancshares, Inc. | WAYN | OH | 13.85 | 14.6 | NA | 97.2 | 101.5 | 9.31 | 2.60 | 38.9 | 3.36 | 3.36 | 417,519 | NA | 9.58 | 3.20 | 73.18 | 2.57 | 0.64 | 6.62 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Alliance Bancorp, Inc. of Pennsylvania | ALLB | PA | 16.50 | 34.4 | 22.9 | 101.2 | 101.2 | 15.69 | 1.45 | 66.4 | -10.38 | -10.38 | 423,472 | 1.93 | 15.50 | 3.60 | 74.52 | 2.69 | 0.46 | 2.84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial Bancorp, Inc. | BNCL | PA | 11.54 | 52.9 | 44.1 | 156.0 | 197.5 | NA | NA | 954.5 | 3.45 | 3.45 | 4,751,522 | 0.40 | 12.86 | 2.84 | 80.26 | 2.57 | 0.40 | 2.95 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESB Financial Corporation | PA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | 1,938,923 | NA | 11.02 | 2.84 | 59.10 | 1.66 | 0.94 | 9.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESSA Bancorp, Inc. | ESSA | PA | 12.50 | 14.7 | 12.0 | 84.4 | 91.1 | 9.12 | 2.24 | 142.9 | 4.17 | 4.17 | 1,567,754 | 1.83 | 10.81 | 2.97 | 70.64 | 2.31 | 0.60 | 5.35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eureka Financial Corporation | EKFC | PA | 19.50 | 15.0 | 15.2 | 103.1 | 103.1 | 15.30 | 2.05 | 23.6 | -2.99 | -2.99 | 154,451 | 0.49 | 14.84 | 4.09 | 60.45 | 2.48 | 1.03 | 6.80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fox Chase Bancorp, Inc. | FXCB | PA | 16.31 | 23.0 | 21.5 | 109.4 | 109.4 | 17.59 | 3.43 | 192.5 | -2.16 | -2.16 | 1,094,616 | 0.90 | 16.07 | 3.19 | 60.83 | 2.06 | 0.76 | 4.63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Harleysville Savings Financial Corporation | HARL | PA | 18.25 | 14.6 | 14.3 | 108.1 | 108.1 | 8.75 | 4.60 | 67.7 | 6.10 | 6.10 | 773,588 | NA | 8.10 | 2.57 | 64.06 | 1.75 | 0.61 | 7.72 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Malvern Bancorp, Inc. | MLVF | PA | 12.30 | NM | 64.9 | 103.6 | 103.6 | 13.37 | 0.00 | 80.7 | 1.74 | 1.74 | 603,170 | 0.80 | 12.91 | 2.70 | 97.75 | 2.75 | 0.10 | 0.76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Northwest Bancshares, Inc. | NWBI | PA | 11.91 | 17.8 | 15.7 | 106.2 | 127.6 | 14.51 | 4.70 | 1,128.1 | -4.95 | -4.95 | 7,775,033 | 1.72 | 13.67 | 3.47 | 65.68 | 2.74 | 0.79 | 5.69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Polonia Bancorp, Inc. | PBCP | PA | 10.40 | NM | 86.7 | 89.4 | 89.4 | 11.65 | NA | 34.7 | -0.48 | -0.48 | 297,885 | NA | 13.03 | 2.88 | 97.91 | 4.23 | 0.00 | 0.02 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prudential Bancorp, Inc. | PBIP | PA | 12.22 | 61.1 | 61.1 | 89.3 | 89.3 | 21.72 | 0.98 | 113.7 | -2.24 | -2.24 | 527,082 | 1.46 | 24.31 | 2.65 | 81.04 | 2.24 | 0.37 | 1.51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quaint Oak Bancorp, Inc. | QNTO | PA | 19.75 | 14.4 | 12.3 | 102.2 | 102.2 | 11.54 | 1.22 | 18.0 | 1.28 | 1.28 | 155,643 | NA | 11.29 | 4.18 | 68.44 | 3.77 | 0.88 | 7.31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Standard Financial Corp. | STND | PA | 21.35 | 17.1 | NA | 81.5 | 92.6 | 13.52 | 1.12 | 60.4 | -1.84 | -1.84 | 446,731 | NA | 16.59 | 2.95 | 68.69 | 2.32 | 0.75 | 4.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United-American Savings Bank | UASB | PA | 20.00 | 10.3 | 13.6 | 84.4 | 84.4 | 6.87 | 1.50 | 6.2 | 0.00 | 0.00 | 90,084 | 1.36 | 8.14 | 3.45 | 60.93 | 2.57 | 0.69 | 8.39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
William Penn Bancorp, Inc. (MHC) | WMPN | PA | 21.00 | 26.9 | 30.9 | 127.4 | 127.4 | 24.25 | 1.24 | 76.5 | 1.94 | 1.94 | 315,265 | 1.81 | 19.04 | 3.23 | 56.28 | 1.65 | 0.91 | 4.94 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
WVS Financial Corp. | WVFC | PA | 11.02 | 21.2 | 21.2 | 71.0 | 71.0 | 7.67 | 1.45 | 22.6 | 2.22 | 2.22 | 294,689 | 0.16 | 10.80 | 1.58 | 70.09 | 1.20 | 0.33 | 3.25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coastway Bancorp, Inc. | CWAY | RI | 11.02 | NA | 55.1 | 77.5 | 77.5 | NA | NA | 54.5 | -5.16 | -5.16 | 465,826 | NA | 15.14 | 3.38 | 97.52 | 4.16 | -0.22 | -1.41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First Federal of South Carolina, FSB (MHC) | FSGB | SC | 1.70 | 28.7 | NM | 34.9 | 35.1 | 2.36 | 0.00 | 1.7 | 0.00 | 0.00 | 72,829 | 8.63 | 6.78 | 3.35 | 101.58 | 4.99 | 0.07 | 1.24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oconee Federal Financial Corp. (MHC) | OFED | SC | 20.41 | 30.9 | 28.4 | 153.8 | 153.8 | 33.35 | 1.96 | 119.8 | 2.05 | 2.05 | 357,096 | 0.61 | 21.68 | 3.37 | 49.09 | 1.69 | 1.05 | 4.95 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HF Financial Corp. | HFFC | SD | 14.82 | 23.5 | 14.2 | 102.6 | 107.7 | 8.28 | 3.04 | 104.5 | 6.24 | 6.24 | 1,263,013 | 1.14 | 8.07 | 2.94 | 74.20 | 2.86 | 0.35 | 4.35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Meta Financial Group, Inc. | CASH | SD | 34.34 | 14.0 | 11.0 | 116.1 | 132.2 | 10.12 | 1.51 | 220.5 | -2.00 | -2.00 | 2,108,063 | 0.10 | 8.71 | 2.73 | 76.32 | 3.99 | 0.76 | 9.28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Athens Bancshares Corporation | AFCB | TN | 24.77 | 16.3 | NA | 107.2 | 107.6 | NA | 0.81 | 44.6 | -2.48 | -2.48 | 302,404 | 2.50 | 14.11 | 4.28 | 75.40 | 4.36 | 0.90 | 6.52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SFB Bancorp, Inc. | SFBK | TN | 29.99 | NA | NA | 82.7 | 82.7 | NA | 1.33 | 11.0 | 17.61 | 17.61 | 56,951 | NA | 24.75 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United Tennessee Bankshares, Inc. | UNTN | TN | 16.00 | 8.9 | 7.1 | 68.9 | 68.9 | 6.97 | 3.13 | 13.4 | 5.61 | 5.61 | 191,692 | 0.94 | 10.12 | 3.19 | 57.59 | 2.04 | 0.79 | 8.07 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BancAffiliated, Inc. | BAFI | TX | 75.00 | NA | NA | 168.5 | 168.5 | NA | NA | 63.4 | 0.00 | 0.00 | 501,412 | NA | 8.02 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Anchor Bancorp | ANCB | WA | 22.14 | 5.7 | 1.6 | 90.0 | 90.0 | 14.96 | NA | 56.5 | 8.53 | 8.53 | 377,454 | 3.41 | 16.61 | 3.97 | 93.81 | 4.32 | 2.47 | 17.61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First Financial Northwest, Inc. | FFNW | WA | 12.19 | 17.2 | 15.2 | 101.9 | 101.9 | 19.73 | 1.64 | 184.9 | 1.25 | 1.25 | 936,997 | 6.92 | 19.36 | 3.77 | 54.10 | 2.03 | 1.17 | 5.82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First Northwest Bancorp | FNWB | WA | 12.53 | NA | NA | NA | NA | NA | NA | 164.1 | NA | NA | 924,151 | 1.52 | 8.98 | 2.89 | 84.02 | 2.82 | 0.35 | 3.53 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FS Bancorp, Inc. | FSBW | WA | 19.36 | 12.7 | 9.3 | 95.1 | 95.1 | 12.29 | 1.24 | 62.6 | 6.08 | 6.08 | 509,754 | 0.24 | 12.92 | 5.12 | 74.02 | 5.30 | 1.01 | 7.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HomeStreet, Inc. | HMST | WA | 17.75 | 11.9 | 12.1 | 87.3 | 91.6 | 7.46 | 0.00 | 263.7 | 1.95 | 1.95 | 3,535,090 | 2.89 | 8.55 | 3.51 | 87.85 | 7.77 | 0.69 | 7.69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Riverview Bancorp, Inc. | RVSB | WA | 4.48 | 5.1 | 24.8 | 98.8 | 131.9 | 12.16 | 0.00 | 100.7 | 0.00 | 0.00 | 828,435 | 3.15 | 12.36 | 3.50 | 86.34 | 3.71 | 2.40 | 20.40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Timberland Bancorp, Inc. | TSBK | WA | 10.92 | 13.2 | 11.6 | 91.4 | 98.0 | 10.27 | 2.20 | 77.0 | 3.02 | 3.02 | 749,917 | 4.32 | 11.24 | 3.86 | 71.85 | 3.49 | 0.81 | 7.34 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Anchor BanCorp Wisconsin Inc. | ABCW | WI | 33.49 | 20.9 | NA | 140.4 | 140.4 | 15.35 | NA | 319.7 | -2.76 | -2.76 | 2,082,379 | NA | 10.93 | 3.48 | 84.62 | 4.22 | 0.69 | 6.89 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Mutual Corporation | BKMU | WI | 7.18 | 23.2 | NA | 119.1 | 119.2 | 14.38 | 2.23 | 334.4 | 4.66 | 4.66 | 2,328,446 | NA | 12.22 | 3.32 | 73.11 | 2.94 | 0.63 | 5.13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guaranty Financial Corp. (MHC) | GFCJ | WI | 3.00 | NA | NA | NM | NA | 0.57 | 0.00 | 5.6 | 0.00 | 0.00 | 1,031,003 | NA | 2.45 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Bancorp Wisconsin, Inc. | HWIS | WI | 7.70 | NA | NM | 54.9 | 54.9 | 5.61 | NA | 6.9 | -1.79 | -1.79 | 123,373 | NA | 10.22 | 3.21 | 119.95 | 4.18 | -0.98 | -11.05 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Waterstone Financial, Inc. | WSBF | WI | 12.97 | 36.0 | 23.2 | 99.5 | 99.7 | 24.81 | 1.54 | 446.4 | -1.37 | -1.37 | 1,799,325 | 4.39 | 24.93 | 2.49 | 81.15 | 5.77 | 0.70 | 3.23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Westbury Bancorp, Inc. | WBB | WI | 16.13 | NM | 46.2 | 93.6 | 93.6 | 13.62 | NA | 79.4 | -1.66 | -1.66 | 594,614 | 1.18 | 14.55 | 3.45 | 91.80 | 4.26 | -0.19 | -1.19 |
EXHIBIT V-2
Pro Forma Calculations
At or For the Year Ended December 31, 2014 | ||||||||||||||||
Based Upon the Sale at $27 Per Share of | ||||||||||||||||
112,657 | ||||||||||||||||
72,407 | 85,185 | 97,963 | Shares at | |||||||||||||
Shares at | Shares at | Shares at | Adjusted | |||||||||||||
Minimum of | Midpoint of | Maximum of | Maximum | |||||||||||||
Offering | Offering | Offering | Offering | |||||||||||||
Range | Range | Range | Range (1) | |||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Gross Proceeds | $ | 1,955 | $ | 2,300 | $ | 2,645 | $ | 3,042 | ||||||||
Expenses | (715 | ) | (715 | ) | (715 | ) | (723 | ) | ||||||||
Estimated net proceeds | 1,240 | 1,585 | 1,930 | 2,319 | ||||||||||||
Common stock acquired by employee stock ownership plan (2) | (156 | ) | (184 | ) | (212 | ) | (243 | ) | ||||||||
Estimated net proceeds | $ | 1,084 | $ | 1,401 | $ | 1,718 | $ | 2,076 | ||||||||
For the twelve months ended December 31, 2014 | ||||||||||||||||
Net income | ||||||||||||||||
Historical (2) | $ | 96 | $ | 96 | $ | 96 | $ | 96 | ||||||||
Pro Forma adjustments: | ||||||||||||||||
Income on adjusted net proceeds | 12 | 15 | 18 | 22 | ||||||||||||
Employee stock ownership plan (2) | (10 | ) | (12 | ) | (14 | ) | (16 | ) | ||||||||
Pro forma income | $ | 97 | $ | 99 | $ | 100 | $ | 102 | ||||||||
Net income per share | ||||||||||||||||
Historical | $ | 1.43 | $ | 1.21 | $ | 1.06 | $ | 0.92 | ||||||||
Pro Forma adjustments: | ||||||||||||||||
Income on net proceeds | 0.17 | 0.19 | 0.20 | 0.21 | ||||||||||||
Employee stock ownership plan (2) | (0.15 | ) | (0.15 | ) | (0.15 | ) | (0.15 | ) | ||||||||
Pro forma income | $ | 1.45 | $ | 1.25 | $ | 1.10 | $ | 0.98 | ||||||||
Offering price to pro forma net income per share | 18.62 | x | 21.60 | x | 24.55 | x | 27.55 | x | ||||||||
Shares considered outstanding in calculating pro forma income per share | 67,194 | 79,052 | 90,910 | 104,546 | ||||||||||||
At December 31, 2014 | ||||||||||||||||
Stockholders Equity: | ||||||||||||||||
Historical (2) | $ | 2,755 | $ | 2,755 | $ | 2,755 | $ | 2,755 | ||||||||
Estimated net proceeds | 1,240 | 1,585 | 1,930 | 2,319 | ||||||||||||
Common stock acquired by employee stock ownership plan (2) | (156 | ) | (184 | ) | (212 | ) | (243 | ) | ||||||||
Pro forma stockholders' equity | $ | 3,839 | $ | 4,156 | $ | 4,473 | $ | 4,831 | ||||||||
Stockholders equity per share: | ||||||||||||||||
Historical | $ | 38.05 | $ | 32.34 | $ | 28.12 | $ | 24.45 | ||||||||
Estimated net proceeds | 17.13 | 18.61 | 19.70 | 20.59 | ||||||||||||
Common stock acquired by employee stock ownership plan (2) | (2.16 | ) | �� | (2.16 | ) | (2.16 | ) | (2.16 | ) | |||||||
Pro forma stockholders' equity | $ | 53.01 | $ | 48.79 | $ | 45.66 | $ | 42.88 | ||||||||
Offering price as percentage of pro forma stockholders' equity per share | 50.93 | % | 55.34 | % | 59.13 | % | 62.97 | % | ||||||||
Shares considered outstanding in calculating offering price as a percentage of pro forma stockholders' equity per share | 72,407 | 85,185 | 97,963 | 112,657 |
(1) As adjusted to give effect to a 15% increase in the number of shares outstanding after the offering which could occur due to an increase in the maximum of the independent valuation as a result of regulatory considerations, demand for the shares, or changes in market conditions or general financial and economic conditions following the commencement of the offering.
(2) Derived from St. James Federal Savings and Loan Association’s December 31, 2014 financial statements.
EXHIBIT V-3
Pro Forma Analysis
Valuation Parameters | ||||||
12 month earnings | Y | $ | 96 | |||
Pre conversion book value | B | $ | 2,755 | |||
Pre conversion assets | A | $ | 27,215 | |||
Return on Money | R | 0.39 | % | |||
Conversion Expenses | X | 31.09 | % | |||
ESOP Purchases | E | 8.00 | % | |||
Cost of ESOP borrowing | S | 0.00 | % | |||
Amort. Of ESOP borrowing | T | 10 | ||||
Amort. Of MRP amount | N | 5 | ||||
MRP purchases | M | 0.00 | % | |||
Stock Foundation Amount | F | 0.00 | % | |||
Tax Benefit | Z | 0 | ||||
Tax Rate | TAX | 34 | % |
Pro Forma Calculation
Calculation of Estimated Value (V) at Midpoint Value | ||||
3. | V= | P/E*Y | = | $2,300,000 |
1-P/E*PCT*((1-X-E-M-F)*R-(1-TAX)*E/T-(1-TAX)*M/N) | ||||
2. | V= | P/B*(B+Z) | = | $2,300,000 |
1-P/B*PCT*(1-X-E-M-F) | ||||
1. | V= | P/A*A | = | $2,300,000 |
1-P/A*PCT*(1-X-E-M-F) |
The appraisal was performed on a market basis and not on the above formulas.
Conclusion
Total | Price | Total | ||||||||||
Shares | Per Share | Value | ||||||||||
Appraised Value - Midpoint | 85,185 | $ | 27.00 | $ | 2,300,000 | |||||||
Range: | ||||||||||||
- Minimum | 72,407 | $ | 27.00 | $ | 1,955,000 | |||||||
- Midpoint | 85,185 | $ | 27.00 | $ | 2,300,000 | |||||||
- Maximum | 97,963 | $ | 27.00 | $ | 2,645,000 | |||||||
- Supermaximum | 112,657 | $ | 27.00 | $ | 3,041,750 |
EXHIBIT VI-1
Firm Qualifications Statement
McAuliffe Financial, LLC
A Bank Consulting Firm
McAuliffe Financial, LLC was founded in 2006 by Kevin McAuliffe to provide financial advisory services to the banking sector. Kevin McAuliffe has over 25 years experience advising and representing banks and has unique experience in understanding the relationships between banks and other service providers. Independent from investment banks and broker/dealers, McAuliffe Financial provides consulting that is unbiased from transactional fees that often influence consulting relationships. Proper preparation and planning for growth, whether through organic or external means, is critical to maximizing your goals. With years of building financial models that extensively quantify the financial variables of financial institutions, McAuliffe Financial is prepared to work closely with you to chart your path to success.
Our clients benefit from an independent array of consulting services that include:
Business and Strategic planning;
Strategic presentations to boards of directors;
Financial modeling;
M&A advisory;
Preparing stock valuations and fairness opinions;
Business and Strategic Planning – McAuliffe Financial has developed financial models that provide forecasting depth beyond traditional line items for financial institutions. The principal of the firm has developed over 100 business plans for banks and has participated in many planning retreats with senior management and board members.
Mergers and Acquisitions – Since 1985, the principal of McAuliffe Financial has been involved in over 40 bank merger and acquisition transactions. His involvement has included structuring financial terms of the transactions, financial forecasting, mark-to-market analyses, marketing financial institutions for sale, finding appropriate suitors and negotiating deal pricing.
Stock Valuations and Fairness Opinions – The principal of McAuliffe Financial has been actively involved in over 170 valuation appraisals for thrifts converting from mutual-to-stock form of ownership. Additionally, he has written over 30 fairness opinions for bank combinations. McAuliffe Financial also prepares stock valuations for ESOPs, goodwill impairment analyses and companies with illiquid stock.
Equity Offerings – The principal of McAuliffe Financial has been involved in over 160 mutual-to-stock conversion offerings. Additionally, he has raised over $150 million in secondary equity offerings and trust preferred securities.