Essex Bancorp, Inc.
Evaluation of Cash Consideration in Conjunction
with Privatization Strategy
March 21, 2001
Presented By:
Ronald S. Riggins
Managing Director
RP Financial, LC.
1700 North Moore Street, Suite 2210
Arlington, VA 22209
Phone: (703) 528-1700
Fax: (703) 528-1788
e-mail: rriggins@rpfinancial.com
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Contents
TAB 1 Corporate Objectives
TAB 2 Common Shareholder Considerations TAB 3 Privatization Transaction
Overview
TAB 4 Valuation Analysis
TAB 5 Application of Common Stock Valuation Techniques to Essex Bancorp, Inc.
Corporate Objectives
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Corporate Objectives
These corporate objectives are consistent with Essex Bancorp's strategic plan,
as approved by the Board of Directors at the December 12, 2000 planning retreat
and as set forth in the business plan prepared in January 2001.
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Corporate Objectives
. Full repayment of preferred stock plus accumulated dividends
. Generate positive return for common shareholders, despite negative book value
per common share and negative earnings per common share and expectations for
continued valuation deterioration
. Reduce the complexity of the capital structure to make the company more
attractive to the investment community and/or potential acquirors
. Continue to implement strategies designed to enhance franchise value in the
short-term and in the long-term
. Reduce expenses of operating as a public company, given that Essex Bancorp
has not been able to take advantage of the benefits generally attributable to
public company status
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3
Common Shareholder Consideration
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Common Shareholder Consideration
. Continued Erosion of Common Shareholder Value Anticipated
* Current earnings are insufficient to cover the preferred stock dividend,
despite Essex's growth and improvement in financial characteristics in
recent years
. Thus common earnings per share (EPS) is negative, further eroding
negative book value per share
* Current leveraged capital position restricts asset growth and
diversification opportunities
. Thus earnings are not anticipated to increase to levels sufficient
to cover preferred dividend or pay accumulated dividends to
preferred shareholders in the foreseeable future
. Common Stock Ownership is Primarily Retail
* No control blocks of the outstanding shares of common stock
* Nominal institutional holders
* No shareholder activists
. Common Stock Price Does Not Reflect Fundamentals as a Going Concern
* No research coverage of common stock limits investment community
awareness
* Potential misunderstanding of common stock characteristics given
. Negative EPS and book value per share
. Significant dilution potential posed by warrants and de facto
voting control by warrant holders
* Outlook for a common stock dividend is unrealistic
. Other Considerations
* Costly to operate as a registered publicly-traded company, particularly
given large number of shareholders
* Full benefit of net operating loss carryforwards ("NOLs") not currently
anticipated to be realized
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Common Shareholder Considerations
. Alternative Strategies Suggest No Value or Value Below Current Stock Price
* Sale of Control Strategy
. Limited acquisition interest from prospective acquirors for entire
company, in part due to complex capital structure and geographic
spread of branches
. Past acquisition interest indicated total deal values in which
common shareholders would have received no consideration and
preferred shareholders would receive a haircut
* Sale of Preferred Stock to Third Parties Who Could Utilize the NOLs
. Limited interest from prospective purchasers who could benefit from
NOLs
. Financial modernization legislation eliminated non financial
services companies from being prospective purchasers
. Provided no immediate benefit to common shareholders
* Full/Partial Preferred Stock Refunding Strategy (Common Stock Offering)
. Limited interest by investment banking firms in such a transaction
. Weak market conditions have prevailed for new thrift offerings
during last couple of years
. Would be highly dilutive to current common shareholders, given size
of offering and anticipated pricing at levels well below current
market price
. Limited short-term benefit to common shareholders
* Liquidation Strategy
. Risky strategy as a publicly-traded company if liquidation is not
fully completed or liquidation residual fall short of initial
expectations
. Highest liquidation returns may be realized if liquidation process
can be conducted discretely (disclosure required as a public
company limits ability to be discrete)
. Potential liquidation residual for common shareholders difficult to
quantify -- fairness issues arise if residual falls short of
expectations (at which point strategy would not be reversible)
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Common Shareholder Considerations
. Capital Structure Impact on Operating Strategy and Operations
* The overall shareholder strategy is highly influential on the
appropriate short-term and long-term financial, operational and
competitive strategies to implement -- suggesting that shareholder
strategies should be addressed first
* Until a selected shareholder strategy is implemented, there is a
tendency to be less profitable, efficient and competitive given the
short-term bias
* Financial Considerations: Short-term vs. Long-term
. Investment in loan participations to enhance portfolio yield --
tendency to pass up potential participation opportunities which may
provide higher yields
. Length of contracts (maintenance, insurance, data processing and
other service contracts) -- tendency to execute short-term
contracts which have higher costs but reduces exposure of contract
termination provisions
* Operational Considerations: Short-term vs. Long term
. De novo branching -- reluctance to pursue branching given short-
term adverse impact on earnings
. Branch acquisitions -- reluctance to create intangible assets
. Investment in technology -- reluctance to pursue investment in
online banking systems and marketing software given short-term
adverse impact to earnings and potential disruption to employees
and customers
. Staffing considerations -- difficult to attract and retain key
management and personnel in new business lines and existing
business lines
. Strategic acquisitions or affiliations -- difficult to pursue
acquisitions or affiliations given complexities of capital
structure and stock price characteristics
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Privatization Transaction Overview
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Privatization Strategy:
Pros and Cons
. Pros
* Eliminates risk of no residual value for current common shareholders
* May be funded with debt, no additional investment by preferred
shareholders required
* Eliminates cost of being a public company (exceeds $100,000 annually)
* Increased flexibility as a privately-held institution, since composition
of new common shareholders will be similar to the preferred
stock/warrant holders
* Gain ability to consider subchapter S corporate status, as total new
common shareholders are anticipated to fall below the 75 shareholder
threshold
* Better positioned to pay dividends to new common shareholders (ie., the
warrant holding preferred shareholders)
* Simplified capital and ownership structure enhances ability to implement
alternative strategies (enhanced marketability in strategic
affiliations, future public offerings or a sale of control)
. Cons
* Transaction involves a number of complexities -- accounting and tax
matters, determination of fair value for the common shareholder and
warrant holders, director independence
* Reduced utilization of NOLs
* Transaction costs: legal, financial, accounting, regulatory, printing,
mailing, proxy solicitation
* May dilute potential return to holders of preferred stock and warrants
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Media Coverage of "Going Private"
. Weekly Adviser: In A Buyer's Market, Going Private Makes Sense
--------------------------------------------------------------
. Tuesday, March 14, 2000
By Paul S. Nadler
. In concluding last week's column, we asked community banks whether they would
be better off de-registering and going private.
. The current merger and acquisition climate has created a buyer's market for
community banks. Many banks aren't getting offers at all, and those that are
often find that multiples are far lower than they were 18 to 24 months ago.
. This may seem odd to those whose banks and thrifts have gone public and have
given up their mutual status. Going public, they felt, would provide more
capital, give the bank a chance to issue options to employees, and generate
profits for those connected with the bank as market prices rose.
. The last few months have shown this is not always the case. Bringing in
institutional investors has forced the banks to concentrate on generating
profits to influence share price, even if they must increase their risk.
There is also the concern that unhappy institutional investors might shake up
the bank's hierarchy.
. A small private bank has no such worries; it can devote its earnings to
salaries and to benefiting its community, instead of trying to boost share
price.
. Equally important, a privately held bank can become a subchapter S
corporation. This means the bank does not have to pay taxes on earnings
before distributing them to shareholders.
. The question is: How do you go private?
. The law says you can have no more than 75 shareholders to become an S
corporation. An attempt to have this raised to 150 was defeated in last
year's congressional session.
. The most basic tool for reducing the number of shareholders is a tender
offer. The offer must be above the market price of the bank and must have a
solid investment banker's approval.
. A tender offer also requires salesmanship. Persuading institutional holders
to tender won't be too difficult, because they will see that the bank's stock
is going nowhere and decide their capital is better used elsewhere.
. Individuals, however, must be shown that their bank stock would lose
liquidity and that it would be difficult to retrieve their investments.
. Sometimes a reverse split is necessary. If the bank does not have enough
capital to finance a tender, it may have to sell bonds.
. The bank can improve its position in the community by lessening shareholders.
It may, of course, want to keep certain shareholders because of the business
they generate. The 75 remaining shareholders can be valuable assets instead
of just recipients of the bank's profits.
. A great many mutuals have listened to the siren song of the investment
bankers: "If you go public you will become rich."
. Many bankers who did go public learned you can become poor, too; their stocks
dropped below the initial offering price or, as happened in a number of
cases, down to zero.
. Now the banks that go private can concentrate on their other two publics:
their employees and their community. This is where community banks' strength
has been and where it may reemerge.
. Mr. Nadler, an American Banker contributing editor, is professor of finance
at Rutgers University Graduate School of Management.
. Copyright 1997-2000, American Banker, All Rights Reserved. Printing,
distribution, and use of this material is governed by your Subscription
Agreement and copyright laws.
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Privatization Transaction Structure
. Essex establishes a new and temporary company e.g., Essex Acquisition Corp.
("EAC")
. EAC borrows from 3rd party in order to fund a cash merger with Essex in which
the holders of common shares receive fair market value
. With at least 50% vote of common shares, the merger is completed and such
voted shares are cancelled
. Preferred shareholders are issued new shares of common stock on a pro rata
basis based on their interests in the exercisable warrants for newly-issued
common shares
. With approximately 60 investors, Essex de-registers as a public company
. Dividends upstreamed from Essex Savings Bank to the holding company provides
the ability to service the debt
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11
Valuation Analysis
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Peer Group Analysis (Going Concern Basis)
Due to inherent differences in the business, operations, financial condition and
capital structure of Essex relative to the Peer Group, it is inappropriate to
rely solely on such comparative analysis for the determination of value of the
outstanding shares of common stock. First, such technique addresses the value of
minority stock with no controlling interest, unlike the Essex situation. Second,
unlike Essex, the Peer Group maintains positive earnings per common share and
book value per common share, providing a fundamental basis for the Peer Group's
common stock pricing.
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Peer Group Analysis (Going Concern Basis)
. RP Financial compared the financial and market performance of Essex, based on
various financial measures relative to a peer group of publicly traded thrifts
* Financial Performance
. Financial condition, earnings performance, operating efficiency
. Capital adequacy
. Asset quality, adequacy of valuation allowances
* Market Performance
. Price/common book value per share
. Price/earnings per common share
. Dividend yields
. Peer Group selected on the basis of
* Publicly-traded (NASDAQ, AMEX, NYSE)
* Southeast region
* Asset size (under $1 billion in assets)
* Operating strategy (traditional thrift strategy with mortgage banking
emphasis)
* Corporate structure (excludes mutual holding companies)
. Pricing comparison not highly meaningful given the negative book value per
common share and earnings per common share, as application of Peer Group
multiples, even before adjustments, indicates nominal value of Essex common
shares
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Peer Group Financial and Market Analysis:
Prepared for Preliminary Valuation
Essex Bancorp, Inc. Peer Group Analyses
Prepared in Conjunction With Preliminary Determination of Value
Asset Quality Risk Profile
------------- -------------
Profitability
------------- NPAs+90 Risk
Total Equity/ ROAA ROAE Effcy Loans/ Days Dlq/ Rsrvs/ Wgtd RWA/
Ticker Company Name ST Assets Assets LTM LTM Ratio Deposits Assets Loans Assets Assets
- ------ ------------ -- ------ ------ ---- ---- ----- -------- ------ ------ ------ ------
($000) (%) (%) (%) (%) (%) (%) (%) ($000) (%)
- --------------------------------------------------------------------------------------------------------------------------------
ESX Essex Bancorp, Inc. VA 292,938 6.41 0.77 12.15 75.12 112.99 0.26 0.57 173,821 59.34%
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Mortgage Banking Peer Group (Assets $250 Million-$1Billion, Equity/Assets * 10%, Profitable)
- ----------------------------------------------------------------------------------------------
ABBK Abington Bancorp, Inc. MA 728,418 4.48 0.64 15.21 74.12 86.84 0.04 1.00 389,964 53.54%
CASB Cascade Fin Corp WA 712,597 5.41 0.58 10.33 69.48 135.66 0.29 0.95 476,293 66.84%
CFCP Coastal Fin Corp SC 768,838 6.10 1.13 19.52 53.59 127.71 0.79 1.36 448,700 58.36%
COOP Cooperative Bnkshrs, Inc. NC 414,720 7.40 0.58 7.92 68.60 109.80 0.49 0.60 269,427 64.97%
FDTR Fed Trust Corp FL 240,063 6.39 0.58 8.96 76.68 125.73 1.28 0.69 143,832 59.91%
FKFS First Keystone Fin, Inc. PA 463,463 5.73 0.53 9.96 71.69 85.38 0.75 0.87 222,281 47.96%
FFHH FSF Fin Corp. MN 473,905 8.53 0.79 8.73 65.77 110.56 0.39 0.46 NA NA
LSBI LSB Fin Corp. IN 275,782 7.70 0.79 10.15 64.86 130.52 0.16 0.41 189,086 68.56%
MFLR Mayflow er Co-op Bank MA 158,249 7.32 0.87 12.52 63.83 66.76 0.08 1.36 111,188 70.26%
NASB NASB Fin, Inc. MO 984,525 8.98 1.62 17.69 44.12 133.97 1.65 0.86 728,067 73.95%
------- ---- ---- ----- ----- ------ ---- ---- ------- -----
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Average: 522,056 6.80 0.81 12.10 65.27 111.29 0.59 0.86 330,982 62.71%
Median: 468,684 6.86 0.72 10.24 67.19 118.15 0.44 0.87 269,427 64.97%
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Regional Peer Group (Assets $250-$500 Million, Equity/Assets * 10%, Profitable)
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CFFC Community Fin Corp VA 261,343 9.76 0.52 4.97 80.29 122.25 0.43 0.69 199,863 76.48%
COOP Cooperative Bnkshrs, Inc. NC 414,720 7.40 0.58 7.92 68.60 109.80 0.49 0.60 269,427 64.97%
CRSB Crusader Hldg Corp PA 402,263 8.63 1.96 23.69 27.69 121.13 2.67 1.20 275,599 68.51%
ESBK Elmira SB, FSB NY 275,873 6.12 0.72 12.26 68.92 96.05 0.21 1.03 182,207 66.05%
EQSB Equitable Bank MD 477,048 5.27 0.52 10.05 60.51 109.94 0.05 0.22 NA NA
FKFS First Keystone Fin, Inc. PA 463,463 5.73 0.53 9.96 71.69 85.38 0.75 0.87 222,281 47.96%
HCBB HCB Bancshares, Inc. AR 292,246 9.97 0.28 2.91 92.55 94.62 0.31 0.94 NA NA
IFSB Independence FSB DC 252,467 9.01 0.56 6.40 83.87 45.79 1.08 0.62 89,077 35.28%
LARL Laurel Capital Group, Inc. PA 257,104 9.23 1.41 14.53 44.25 92.55 0.19 1.01 144,397 56.16%
PHFC Pittsburgh Fin Corp. PA 440,242 4.88 0.11 2.35 79.32 151.31 0.78 0.76 NA NA
UFBS Union Fin Bancshares, Inc SC 259,064 8.46 0.85 10.90 61.14 89.04 0.61 0.81 137,388 53.03%
WSB Washington SB, FSB MD 270,525 8.82 0.54 6.11 75.05 71.66 0.66 0.78 110,118 40.71%
WVFC WVS Fin Corp. PA 408,910 6.67 1.10 16.18 39.39 110.01 0.99 1.07 192,746 47.14%
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Average: 344,251 7.69 0.74 9.86 65.64 99.96 0.71 0.82 182,310 55.63%
Median: 292,246 8.46 0.56 9.96 68.92 96.05 0.61 0.81 187,477 54.60%
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Loan Servicing Data
-------------------------- Marketing Pricing Analysis
Loans Mtg ---------------------------------- Current Dividend
Ticker Company Name Srvcd For LSFOs/ Srvcng MSRs Market Price/ LTM Price/ Price/ ----------------
- ------ ------------ ST Others Assets Rights LSFOs Value Earnings Book Assets Yield Payout Ratio
-- ------ ------ ------ ----- ------- ----------- ----- ------- ----- -----------
(%) ($000) (%) ($M) (X) (%) (%) (%) (%)
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Esx Essex Bancorp,Inc. VA 1,661,637 567.23% 2,069 0.12% 1.46 NM NM 0.52 0.00 NM
- -----------------------------------------------------------------------------------------------------------------------------------
ABBK Abington Bancorp, Inc. MA 109,020 14.97% 0 0.00% 38.54 8.91 117.96 5.29 2.87 23.36
CASB Cascade Fin Corp WA 105,406 14.79% 856 0.81% 42.33 11.73 109.71 5.94 0.00 0.00
CFCP Coastal Fin Corp SC 106,147 13.81% 0 0.00% 78.34 9.19 166.93 10.19 2.42 22.89
COOP Cooperative Bnkshrs, Inc. NC 76,442 18.43% 0 0.00% 28.33 15.13 92.29 6.83 1.92 17.65
FDTR Fed Trust Corp FL 146,128 60.87% 1,400 0.96% 12.37 10.00 80.65 5.15 0.00 0.00
FKFS First Keystone Fin, Inc. PA 70,390 15.19% 94 0.13% 24.49 9.80 92.16 5.28 2.94 25.23
FFHH FSF Fin Corp. MN 52,104 10.99% 198 0.38% 34.49 9.54 79.52 7.28 4.19 35.00
LSBI LSB Fin Corp. IN 60,750 22.03% 451 0.74% 17.56 8.20 79.10 6.37 2.85 22.73
MFLR Mayflow er Co-op Bank MA 51,952 32.83% 279 0.54% 14.93 11.75 128.75 9.44 5.43 63.83
NASB NASB Fin, Inc. MO 706,668 71.78% 14,851 2.10% 107.32 7.75 128.30 10.90 3.96 23.31
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Average: 148,501 27.57% 1,813 0.57% 39.87 10.20 107.54 7.27 2.66 23.40
Median: 90,924 16.81% 239 0.46% 31.41 9.67 101.00 6.60 2.86 23.10
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CFFC Community Fin Corp VA 4,980 1.91% 4 0.08% 23.13 18.27 91.00 8.88 3.37 61.54
COOP Cooperative Bnkshrs, Inc. NC 76,442 18.43% 0 0.00% 28.33 15.13 92.29 6.83 1.92 17.65
CRSB Crusader Hldg Corp PA 0 0.00% 0 0.00% 26.53 3.62 76.39 6.59 0.00 0.00
ESBK Elmira SB, FSB NY 45,376 16.45% 0 0.00% 18.80 9.33 110.74 6.82 2.72 25.72
EQSB Equitable Bank MD NA NA 0 NA 26.51 11.32 105.90 5.56 0.00 0.00
FKFS First Keystone Fin, Inc. PA 70,390 15.19% 94 0.13% 24.49 9.80 92.16 5.28 2.94 25.23
HCBB HCB Bancshares, Inc. AR 0 0.00% 0 0.00% 16.43 19.94 58.69 5.85 2.87 57.14
IFSB Independence FSB DC NA NA 0 NA 15.24 10.51 66.98 6.04 2.36 60.18
LARL Laurel Capital Group, Inc. PA 475 0.18% 0 0.00% 30.34 9.63 128.21 11.83 4.39 40.37
PHFC Pittsburgh Fin Corp. PA NA NA 0 NA 16.13 30.65 71.48 3.66 3.79 116.13
UFBS Union Fin Bancshares, Inc SC 47,133 18.19% 452 0.96% 17.35 8.09 79.01 6.69 4.41 33.31
WSB Washington SB, FSB MD 5,821 2.15% 0 0.00% 18.28 10.26 76.63 6.76 2.50 32.26
WVFC WVS Fin Corp. PA 1,986 0.49% 0 0.00% 34.80 8.32 128.53 8.57 5.20 43.24
----- ----- - ----- ----- ---- ------ ---- ---- -----
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Average: 25,260 7.30% 42 0.12% 22.80 12.68 90.62 6.87 2.81 39.44
Median: 5,401 2.03% 0 0.00% 23.13 10.26 91.00 6.69 2.87 33.31
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* is equal to less than
Source: SNL Securities and corporate reports. All data as of or for the 12
months ended 12/31/00. Excludes mutual holding companies and thrifts
subject to acquisition.
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Peer Group Financial and Market Analysis:
Prepared for Fairness Opinion
Essex Bancorp, Inc. Peer Group Analyses
Prepared In Conjunction With Preparation of Fairness Opinion
Asset Quality
Profitability -------------------
-------------------------- NPAs+90
Total Equity/ ROAA ROAE Effcy Loans/ Days Dlq/ Rsrvs/
Ticker Company Name ST Assets Assets LTM LTM Ratio Deposits Assets Loans
- ------ ------------ -- ------ ------ ---- ---- ----- -------- ------ -----
($000) (%) (%) (%) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------------------
ESX Essex Bancorp, Inc. VA 292,938 6.41 0.77 12.15 75.12 112.99 0.26 0.57
- ----------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
Mortgage Banking Peer Group (Assets $250 Million-$1Billion, Equity/Assets (less than) 10%, Profitable)
- --------------------------------------------------------------------------------------------------------
ABBK Abington Bancorp, Inc. MA 728,249 4.71 0.64 15.14 73.84 82.33 0.08 1.03
CASB Cascade Fin Corp WA 716,129 5.76 0.57 10.19 69.08 139.12 0.40 0.97
CFCP Coastal Fin Corp SC 774,465 6.55 1.14 19.23 52.84 122.03 0.76 1.37
COOP Cooperative Bnkshrs, Inc. NC 414,728 7.43 0.47 6.35 68.20 106.65 0.22 0.62
FDTR Fed Trust Corp FL 240,063 6.40 0.58 8.96 76.68 125.73 1.28 0.69
FKFS First Keystone Fin, Inc. PA 472,262 6.16 0.49 9.18 73.04 82.76 0.60 0.89
FFHH FSF Fin Corp. MN 473,905 8.54 0.79 8.73 65.77 110.56 0.39 0.46
LSBI LSB Fin Corp. IN 282,225 7.71 0.76 9.87 64.90 131.36 NA 0.41
MFLR Mayflower Co-op Bank MA 157,566 8.45 0.88 12.30 62.61 67.67 0.08 1.37
NASB NASB Fin, Inc. MO 1,013,724 8.47 1.52 17.10 44.42 140.00 NA 0.85
--------- ---- ---- ----- ----- ------ ---- ----
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Average: 527,332 7.02 0.78 11.71 65.14 110.82 0.48 0.87
Median: 473,084 6.99 0.70 10.03 66.99 116.30 0.40 0.87
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- ----------------------------------------------------------------------------------------------
Regional Peer Group (Assets $250-$500 Million, Equity/Assets (less than) 10%, Profitable)
- ----------------------------------------------------------------------------------------------
CFFC Community Fin Corp VA 262,784 9.81 0.47 4.60 81.64 120.24 NA 0.68
COOP Cooperative Bnkshrs, Inc. NC 414,728 7.43 0.47 6.35 68.20 106.65 0.22 0.62
CRSB Crusader Hldg Corp PA 406,349 9.42 2.26 26.64 26.35 118.13 2.70 1.37
ESBK Elmira SB, FSB NY 280,099 6.36 0.74 12.52 68.46 97.48 0.32 0.97
EQSB Equitable Bank MD 477,048 5.25 0.52 10.05 60.51 108.27 0.05 0.23
FKFS First Keystone Fin, Inc. PA 472,262 6.16 0.49 9.18 73.04 82.76 0.60 0.89
HCBB HCB Bancshares, Inc. AR 292,305 10.49 0.29 2.97 93.25 92.22 NA 1.00
IFSB Independence FSB DC 252,467 9.01 0.56 6.40 83.87 45.79 NA 0.62
LARL Laurel Capital Group, Inc. PA 261,541 9.52 1.47 15.56 44.31 92.37 0.33 0.99
PHFC Pittsburgh Fin Corp. PA 440,242 5.13 0.11 2.34 79.32 151.31 0.78 0.76
UFBS Union Fin Bancshares, Inc SC 265,944 8.44 0.82 10.18 61.59 91.12 0.64 0.78
WSB Washington SB, FSB MD 41,310 12.12 0.58 4.96 82.09 52.27 0.75 0.85
WVFC WVS Fin Corp. PA 415,231 6.56 1.06 15.84 38.71 110.10 0.98 1.06
---------------------------------------------------------------------------------------------------------------
Average: 329,408 8.13 0.76 9.81 66.26 97.59 0.74 0.83
Median: 292,305 8.44 0.56 9.18 68.46 97.48 0.62 0.85
---------------------------------------------------------------------------------------------------------------
-------------------------
Risk Profile Loan Servicing Data Market Pricing Analysis
----------------- --------------------------------------- -------------------------
Risk Loans Mtg
Wgtd RWA/ Srvcd For LSFOs/ Srvcng MSRs/ Market Price/LTM
Ticker Company Name ST Assets Assets Others Assets Rights LSFOs Value Earnings
- ----- ------------ -- ------ ------ ------ ------ ------ ----- ----- --------
(%) ($000) (%) ($000) (%) ($000) (%) ($M) (x)
- ----------------------------------------------------------------------------------------------------------------------------------
ESX Essex Bancorp, Inc. VA 173,821 59.34% 1,661,637 567.23% 2,069 0.12% 1.46 NM
- ----------------------------------------------------------------------------------------------------------------------------------
ABBK Abington Bancorp, Inc. MA 402,652 55.29% 105,298 14.46% 0 0.00% 40.08 9.26
CASB Cascade Fin Corp WA 485,365 67.78% 102,945 14.38% 793 0.77% 42.68 11.92
CFCP Coastal Fin Corp SC 455,394 58.80% 106,407 13.74% 0 0.00% 76.11 8.97
COOP Cooperative Bnkshrs, Inc. NC 268,061 64.64% 74,140 17.88% 0 0.00% 33.25 17.75
FDTR Fed Trust Corp FL 143,832 59.91% 146,128 60.87% 1,400 0.96% 10.82 8.75
FKFS First Keystone Fin, Inc. PA 214,004 45.31% 68,904 14.59% 95 0.14% 25.66 10.75
FFHH FSF Fin Corp. MN NA NA 52,104 10.99% 198 0.38% 36.40 10.13
LSBI LSB Fin Corp. IN NA NA NA NA NA NA 17.56 8.31
MFLR Mayflower Co-op Bank MA 108,055 68.58% 46,782 29.69% 262 0.56% 14.87 11.46
NASB NASB Fin, Inc. MO 744,314 73.42% 736,900 72.69% 13,750 1.87% 106.96 7.72
------- ------ ------- ------ ------ ----- ------ -----
---------------------------------------------------------------------------------------------------------------------
Average: 352,710 61.72% 159,956 27.70% 1,833 0.52% 40.44 10.50
Median: 335,357 62.27% 102,945 14.59% 198 0.38% 34.83 9.70
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CFFC Community Fin Corp VA 186,645 71.03% 4,884 1.86% 3 0.06% 22.79 19.64
COOP Cooperative Bnkshrs, Inc. NC 268,061 64.64% 74,140 17.88% 0 0.00% 33.25 17.75
CRSB Crusader Hldg Corp PA 278,197 68.46% 0 0.00% 0 0.00% 33.49 3.81
ESBK Elmira SB, FSB NY 183,344 65.46% 44,922 16.04% 0 0.00% 18.40 9.13
EQSB Equitable Bank MD 245138 51.39% NA NA 0 NA 26.88 11.46
FKFS First Keystone Fin, Inc. PA 214,004 45.31% 68,904 14.59% 95 0.14% 25.66 10.75
HCBB HCB Bancshares, Inc. AR NA NA 0 0.00% 0 0.00% 16.88 20.06
IFSB Independence FSB DC 89,077 35.28% NA NA 0 NA 14.43 12.36
LARL Laurel Capital Group, Inc. PA 146,176 55.89% 413 0.16% 0 0.00% 31.04 8.97
PHFC Pittsburgh Fin Corp. PA 230749 52.41% 0 0.00% 0 0.00% 19.20 36.69
UFBS Union Fin Bancshares, Inc SC 144,670 54.40% NA NA 629 NA 17.71 8.26
WSB Washington SB, FSB MD 17,984 43.53% 0 0.00% 0 0.00% 3.41 13.24
WVFC WVS Fin Corp. PA 193,335 46.56% 1,979 0.48% 0 0.00% 34.97 8.49
------- ------ ----- ----- --- ----- ----- -----
----------------------------------------------------------------------------------------------------------------------
Average: 183,115 54.53% 19,524 5.10% 56 0.02% 22.93 13.89
Median: 189,990 53.41% 1,196 0.32% 0 0.00% 22.79 11.46
----------------------------------------------------------------------------------------------------------------------
Current Dividend
-----------------------
Price/ Price/
Ticker Company Name ST Book Assets Yield Payout Ratio
- ----- ------------ -- ---- ------ ----- ------------
(%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------
ESX Essex Bancorp, Inc. VA NM 0.52 0.00 NM
- ------------------------------------------------------------------------------------------------
ABBK Abington Bancorp, Inc. MA 116.84 5.50 2.76 25.53
CASB Cascade Fin Corp WA 103.47 5.96 0.00 0.00
CFCP Coastal Fin Corp SC 150.00 9.83 2.48 22.22
COOP Cooperative Bnkshrs, Inc. NC 107.93 8.02 1.63 28.99
FDTR Fed Trust Corp FL 70.58 4.51 0.00 0.00
FKFS First Keystone Fin, Inc. PA 88.33 5.45 2.78 27.10
FFHH FSF Fin Corp. MN 84.38 7.72 3.95 35.00
LSBI LSB Fin Corp. IN 77.36 6.22 3.17 23.68
MFLR Mayflower Co-op Bank MA 111.68 9.44 5.45 62.50
NASB NASB Fin, Inc. MO 124.63 10.55 4.00 24.69
------ ----- ---- -----
-------------------------------------------------------------------------------------
Average: 103.52 7.32 2.62 24.97
Median: 105.70 6.97 2.77 25.11
-------------------------------------------------------------------------------------
CFFC Community Fin Corp VA 88.96 8.73 3.32 65.31
COOP Cooperative Bnkshrs, Inc. NC 107.93 8.02 1.63 28.99
CRSB Crusader Hldg Corp PA 87.58 8.24 0.00 0.00
ESBK Elmira SB, FSB NY 103.32 6.57 2.78 24.79
EQSB Equitable Bank MD 107.20 5.62 0.00 0.00
FKFS First Keystone Fin, Inc. PA 88.33 5.45 2.78 27.10
HCBB HCB Bancshares, Inc. AR 55.18 5.79 2.78 55.81
IFSB Independence FSB DC 63.45 5.72 0.00 60.18
LARL Laurel Capital Group, Inc. PA 124.71 11.87 4.28 37.29
PHFC Pittsburgh Fin Corp. PA 85.59 4.39 3.16 116.13
UFBS Union Fin Bancshares, Inc SC 78.86 6.66 4.32 35.71
WSB Washington SB, FSB MD 68.02 8.24 0.00 0.00
WVFC WVS Fin Corp. PA 128.06 8.40 5.09 43.24
------ ----- ----- -----
-------------------------------------------------------------------------------------
Average: 91.32 7.21 2.32 38.04
Median: 88.33 6.66 2.78 35.71
-------------------------------------------------------------------------------------
Source: SNL Securities and corporate reports. All data as of or for the 12
months ended 12/31/00. Excludes mutual holding companies and thrifts subject to
acquisition.
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ESSEX
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16
Peer Group Pricing Analysis (Going Concern):
Prepared for Preliminary Valuation
Peer Group Pricing Analysis
Prepared In Conjunction With Preliminary Valuation
Essex Indicated
Peer Group Essex 12/31/00 Comparative Value
Median Per Common Pricing Per Approach
Pricing Ratio Share Data (1) Adjustment Share Weighting
------------- -------------- ---------- ----- ---------
- --------------------------------------------------------------------------------------------------------
Mortgage Banking Peer Group (Assets $ 250 Million-$1Billion, Equity/Assets (less than) 10%, Profitable)
- --------------------------------------------------------------------------------------------------------
Earnings Approach (revised) (x) 9.67x ($0.94) NM $ 0.00 60.00%
Book Value Approach (%) 101.00% ($2.34) NM $ 0.00 30.00%
Assets Approach (%) 6.00% $ 267.17 50% $ 8.02 10.00%
-------- ------
Weighted Average $ 0.80 100.00%
- -------------------------------------------------------------------------------------------
Regional Peer Group (Assets $250- $500 Million, Equity/Assets (less than) 10%, Profitable)
- -------------------------------------------------------------------------------------------
Earnings Approach (revised) (x) 10.26x ($0.94) NM $ 0.00 60.00%
Book Value Approach (%) 91.00% ($2.34) NM $ 0.00 30.00%
Assets Approach (%) 6.09% $ 267.17 50% $ 8.14 10.00%
-------- ------
Weighted Average $ 0.81 100.00%
(1) Earnings per common share excludes $3.3 million deferred tax asset
recognition pertaining to NOLs and preferred dividends.
The EPS calculation is adjusted to reflect the reduction of the tax benefit
to current taxes payable.
Book value per share and assets per share adjusted for preferred stock par
value + accumulated dividends.
[LOGO] ESSEX
17
Peer Group Pricing Analysis (Going Concern):
Prepared for Fairness Opinion
Peer Group Pricing Analysis
Prepared In Conjunction With Fairness Opinion
Essex Indicated
Peer Group Essex 12/31/00 Comparative Value
Median Per Common Pricing Per Approach
Pricing Ratios Share Data (1) Adjustment Share Weighting
-------------- -------------- ---------- ----- ---------
- -------------------------------------------------------------------------------------------------------
Mortgage Banking Peer Group (Assets $250 Million-$1Billion, Equity/Assets (less than) 10%, Profitable)
- -------------------------------------------------------------------------------------------------------
Earnings Approach (x) 9.70x ($0.94) NM $ 0.00 60.00%
Book Value Approach (%) 105.70% ($2.34) NM $ 0.00 30.00%
Assets Approach (%) 6.97% $ 267.17 50% $ 9.31 10.00%
------- ------
Weighted Average $ 0.93 100.00%
- ------------------------------------------------------------------------------------------
Regional Peer Group (Assets $250-$500 Million, Equity/Assets (less than) 10%, Profitable)
- ------------------------------------------------------------------------------------------
Earnings Approach (x) 11.46x ($0.94) NM $ 0.00 60.00%
Book Value Approach (%) 88.33% ($2.34) NM $ 0.00 30.00%
Assets Approach (%) 6.66% $ 267.17 50% $ 8.90 10.00%
------- ------
Weighted Average $ 0.89 100.00%
(1) Earnings per common share excludes $3.3 million deferred tax asset
recognition pertaining to NOLs and preferred dividends.
The EPS calculation is adjusted to reflect the reduction of the tax benefit
to current taxes payable.
Book value per share and assets per share adjusted for preferred stock par
value + accumulated dividends.
[LOGO] ESSEX
18
Comparable Transactions Analysis
(Sale of Control Basis)
Due to inherent differences in the business, operations, financial condition and
capital structure of Essex relative to the Peer Group, it is inappropriate to
rely solely on comparable sale of control transactions for the determination of
value of the outstanding shares of common stock. Unlike Essex, the Peer Group
maintains positive earnings per common share and book value per common share,
providing a fundamental basis for sale of control pricing of the common stock.
Importantly, after contacting numerous parties regarding a prospective
----------------------------------------------------------------------
acquisition, no party indicated a purchase price that would result in positive
------------------------------------------------------------------------------
returns for common shareholders.
-------------------------------
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ESSEX
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Peer Group Analysis (Sale of Control)
. RP Financial compared the financial and market performance of Essex, based
on various financial measures relative to the acquisitions of publicly
traded thrifts from 1998 to present, considering the following data:
* Financial Performance
. Financial condition, earnings performance, operating efficiency
. Capital adequacy
. Asset quality, adequacy of valuation allowances
* Market Performance
. Price/common book value per share
. Price/earnings per common share
. Dividend yields
. Comparable transactions selected on the basis of
* Publicly-traded (NASDAQ, AMEX, NYSE)
* Completed 1998 to present
* Excluded acquisitions of mutual holding companies and strategic
* mergers and mergers of equals
. Pricing comparison not highly meaningful given the negative book value per
common share and earnings per common share, as application of Peer Group
multiples, even before adjustments, indicates a small positive value of
Essex common shares -- however, market testing indicated no value would be
---------------------------------------------------
realized by common shareholders in a prospective sale
-----------------------------------------------------
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ESSEX
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20
Peer Group Pricing Analysis (Sale of Control):
Prepared For Preliminary Valuation
Comparable Transactions Pricing Analysis
Prepared In Conjunction With Preliminary Valuation
Essex
Comparable Essex 12/31/00 Comparative
Transactions Per Common Pricing
Pricing Ratios Share Data (1) Adjustment
-------------- -------------- ----------
- -----------------------------------------------------------------------------------------------------------
Thrift Acquisitions 1998 to Present (Excludes Mergers and Acqusitions of Strategic Mutual Holding Cos.)
- -----------------------------------------------------------------------------------------------------------
Earnings Approach (revised) 23.28x ($0.94) NM
Book Value Approach 151.07% ($2.34) NM
Deposit Premium + Equity Approach 11.55% $206.56 80% (2)
Weighted Average
- ----------------------------------------------------------------------------------------------------------
Thrift Acquisitions 2000 to Present (Excludes Strategic Mergers and Acqusitions of Mutual Holding Cos.)
- ----------------------------------------------------------------------------------------------------------
Earnings Approach (revised) 18.62x ($0.94) NM
Book Value Approach 124.07% ($2.34) NM
Deposit Premium + Equity Approach 6.23% $206.56 80% (2)
Weighted Average
Indicated
Value
Per Approach
Share Weighting
------- ---------
Earnings Approach (revised) $ 0.00 55.00%
Book Value Apporach $ 0.00 30.00%
Deposit Permium + Equity Approach $16.75 (3) 15.00%
------ ------
Weighted Average $ 2.51 100.00%
Earnings Approach (revised) $ 0.00 55.00%
Book Value Approach $ 0.00 30.00%
Deposit Premium + Equity Approach $ 7.95 (3) 15.00%
------ ------
Weighted Average $ 1.19 100.00%
(1) Earnings per common share excludes $3.3 million deferred tax asset
recognition pertaining to NOLs and preferred dividends.
The EPS calculation is adjusted to reflect the reduction of the tax benefit
to current taxes payable. Book value per share adjusted for preferred stock
par value + accumulated dividends.
Core deposits equals total deposits less deposits over $100,000. Does not
reflect warrants.
(2) Reflects discount for geographic spread of branches and comparatively lower
proportion of core deposits.
(3) Reflects deposit premium plus tangible equity (core deposits per share
updated for 12/31/00 data which subsequently became available).
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ESSEX
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21
Peer Group Pricing Analysis (Sale of Control):
Prepared For Fairness Opinion
Comparable Transactions Pricing Analysis
Prepared In Conjunction With Preliminary Valuation
Essex
Comparable Essex 12/31/00 Comparative
Transactions Per Common Pricing
Pricing Ratios Share Data(1) Adjustment
-------------- ------------- ----------
- ------------------------------------------------------------------------------------------------------------------
Thrift Acquisitions 1998 to Present (Excludes Strategic Mergers and Acqusitions of Mutual Holding Cos.)
- ------------------------------------------------------------------------------------------------------------------
Earnings Approach 23.06x ($0.94) NM
Book Value Approach 148.08% ($2.34) NM
Deposit Premium + Equity Approach 11.35% $206.56 80% (2)
Weighted Average
- ----------------------------------------------------------------------------------------------------------------
Thrift Acquisitions 2000 to Present (Excludes Strategic Mergers and Acqusitions of Mutual Holding Cos.)
- ----------------------------------------------------------------------------------------------------------------
Earnings Approach 18.52x ($0.94) NM
Book Value Approach 124.78% ($2.34) NM
Deposit Premium + Equity Approach 6.89% $206.56 80% (2)
Weighted Average
Indicated
Value
Per Approach
Share Weighting
----- ---------
Earnings Approach $ 0.00 55.00%
Book Value Approach $ 0.00 30.00%
Deposit Premium + Equity Approach $16.42 (3) 15.00%
------ ------
Weighted Average $ 2.46 100.00%
Earnings Approach $ 0.00 55.00%
Book Value Approach $ 0.00 30.00%
Deposit Premium + Equity Approach $ 9.05 (3) 15.00%
------ ------
Weighted Average $ 1.36 100.00%
(1) Earnings per common share excludes $3.3 million deferred tax asset
recognition pertaining to NOLs and preferred dividends.
The EPS calculation is adjusted to reflect the reduction of the tax benefit
to current taxes payable. Book value per share adjusted for preferred stock
par value + accumulated dividends.
Core deposits equals total deposits less deposits over $100,000. Does not
reflect warrants.
(2) Reflects discount for geographic spread of branches and comparatively lower
proportion of core deposits. (3) Reflects deposit premium plus tangible
equity.
(3) Reflects deposit premiums plus tangible equity
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ESSEX
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22
Premium Paid Analysis
RP Financial reviewed the implied premium paid for the
common stock in the following transactions:
1. Acquisitions of publicly-traded banks and thrifts
2. Other going private transactions of publicly-traded banks
and thrifts and non-banking companies
3. "Dutch tender auction" transactions of publicly-traded banks
and thrifts
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ESSEX
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Premium Paid Analysis
. RP Financial reviewed the implied premium paid for the common stock in the
following transactions:
* 1. Acquisitions of publicly-traded banks and thrifts
. While all of the outstanding shares of common stock of Essex are
being repurchased in the privatization transaction, similar to an
acquisition, the warrant holders already have de facto control
. Accordingly, the privatization transaction would not need to
reflect a full control premium in the acquisition context
* 2. Other going private transactions of publicly-traded banks and
thrifts and non banking companies
. Essex's privatization transaction is unique structurally, but
share a number of similarities as well
. Differing structures of going private transactions leads to wide
range of premiums paid
. Banking companies are most appropriate for comparison, and thus
given greater weight
. Due to a variety of reasons, including but not limited to, wide
differences in lines of business, relevant valuation measures
applicable for companies with different lines of business and
external factors impacting companies if different industries such
as competitive factors, regulatory and legislative factors,
technological factors and investment community perception
* 3. "Dutch tender auction" transactions of publicly-traded banks and
thrifts
. Dutch auction repurchases are for only a portion of the shares
outstanding, where all of the outstanding shares of common stock
of Essex are being repurchased in the privatization transaction
. Accordingly, the pricing in Essex's may require a higher premium
than paid in Dutch auction self tender transactions
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ESSEX
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24
Premium Paid Analysis:
1. Control Premiums Paid In Bank/Thrift M&A
[LOGO]
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ESSEX
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Premium Paid Analysis:
1. Control Premiums Paid In Bank/Thrift M&A
. Examined control premium paid by acquirors for publicly traded banks and
thrifts from 1998 to present
* Typically buyer acquires 100% of shares outstanding, typically
starting from no prior ownership or only a minority position
* Excludes mergers of equals, strategic merger transactions and
acquisitions of mutual holding companies
. Control premium calculation based on
* Acquisition price at announcement
* Trading price of target one day prior to merger announcement
. Control premiums paid
* Bank acquisitions Preliminary Opinion
----------- -------
. Average 29.86% 30.19%
. Median 23.75% 25.00%
* Thrift acquisitions
. Average 32.31% 31.90%
. Median 26.89% 26.56%
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ESSEX
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26
Premium Paid Analysis:
2. Premiums Paid In Going Private Transactions:
Banking Companies
[LOGO]
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ESSEX
- -----
Premium Paid Analysis:
2. Premiums Paid In Going Private Transactions
. RP Financial reviewed the implied premium paid by publicly-traded banks and
thrifts "going private" 1998 to present
* BankAtlantic Bancorp, Inc., Fort Lauderdale, Florida (2000)
. Structure: cash out the 9.9 million shares Class B common stock,
leaving the holders of the 31.6 million shares of Class A stock as
the sole class of common stock outstanding
. Premium of 17.1% based on purchase price of $6.00 per share vs. a
closing price of $5.125 per share prior to the announcement
* Hawaii National Bancshares, Honolulu, Hawaii (1999)
. Structure: conduct 1:200 reverse split, with holders of 200 shares
or less receiving $45.00 cash and concurrent tender offer for same
$45.00 per share price (pre-split basis)
. 88% of stock before going private held by a single family, and there
were 1,221 shareholders on a pre-split basis
. Premium of 12.5% based on the most recent trade of $40.00 per share
* Union Planters Bank, NA, Memphis, Tennessee/Capital Factors Holding
(1998)
. Structure: Union Planters tendered for the 8.7% minority position of
Capital Factors for $17.50 in cash (Union Planters' majority
ownership of Capital Factors was attributable to the Capital Bancorp
acquisition) -- price consistent with price paid by Union Planters
in block purchases of the stock from institutional investors in
recent months
. Premium of 7.7% based on the closing price prior to commence of
privatization
* First Independence Corp., Detroit, Michigan (1999)
. Structure: conduct 1:60 reverse stock split, with holders of 60
shares of less receiving $10.00 in cash, reducing shareholders from
2,100 to (less than) 300 to facilitate de-registration
. 64.6% of stock owned by directors before transaction
. Premium of 42.86% based on most recent trade of $7.00 per share (an
insiders have been the most active purchasers of the common stock)
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ESSEX
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28
Premium Paid Analysis:
2. Premiums Paid In Going Private Transactions
. RP Financial reviewed the implied premium paid in selected bank and thrift
"going private" transactions 1998 to present
* National City Corp, Cleveland, Ohio/National Processing, Inc. (1999)
. Structure: National City tendered for the 12.4% minority position
of National Processing for $9.50 in cash (National City's majority
ownership was attributable to previous sole prior to an IPO
representing minority ownership)
. Premium of 59.9% based on the $5.94 closing price prior to
publicized speculation that National Processing might be sold
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ESSEX
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29
Premium Paid Analysis:
2. Premiums Paid In Going Private Transactions:
Non-Banking Companies
[LOGO]
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ESSEX
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Premium Paid Analysis:
3. Premiums Paid In Dutch Tender Auctions
[LOGO]
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ESSEX
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Premium Paid Analysis:
3. Premiums Paid In Dutch Tender Auctions
. Objective
* A stock repurchase strategy to deploy excess capital, particularly if
Board/management perceive that current stock price is undervalued and
seeks to repurchase a large block of shares
. Structure of Modified Dutch Auctions
* Involves a tender offer by the company to purchase a set amount of
shares at a range of prices
* Range of stock prices typically reflects a premium to the current
trading price for the stock as an incentive to shareholders to tender
their shares
* Stockholders offer their shares at a selected price within the range,
and the company purchases shares either at
. (i) the average price offered or
. (ii) the lowest prices tendered
. Other Considerations
* Reduces equity quickly
* Increases ownership interest of insiders
* Avoids brokerage fees for stockholders/Company generally pays stock
transfer charges
* Possibly opens the door to a third party offer
. Since company is signaling its overcapitalization and
undervaluation -- raises questions of ability to generate market
rate of returns
. Raises questions regarding the ability to realize a higher premium
pursuant to a sale of control
. Pricing Analysis (see following table)
* Approximately 15% control premium to acquire nearly 20% of shares
outstanding
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ESSEX
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32
Premium Paid Analysis:
3. Premiums Paid In Dutch Tender Auctions
Modified Dutch Auction By Banks and Thrifts 1998 to Present
Common Stock Tender Offers Only
Pre-Transaction Pre- Tender Offer Initial Tender Offer
----------------------- Period --------------------
Market Anncmnt ------------------ # of %-
Institution Ticker Assets Cap. Price Opened Closed Shares Outst.
- ----------- ------ ------ --- ----- ------ ------ ------ -----
($Mil) ($Mil) ($) (%)
Republic Bancorp, Inc.-KY RBCAA $1,508 $109 $ 7.38 02/12/01 03/13/01 1,000,000 6.77%
- ------------------------------------------------------------------------------------------------------------------------------------
Souside Bankshares-MO SBCO $ 725 $ 77 $ 9.13 01/05/01 Pending 1,100,000 13.11%
Citizens First Fin. Corp.-IL CFSB $ 329 $ 27 $14.00 10/31/00 12/01/00 391,000 20.00%
Promistar Fin Corp (BT Financial)-PA PRFC $2,036 $275 $16.50 09/29/00 10/31/00 1,668,328 10.00%
NASB Financial, Inc.-MO NASB $ 909 $ 96 $10.63 06/05/00 07/05/00 387,500 4.30%
PS Financial, Inc.-IL PSFI $ 122 $ 19 $11.56 03/01/00 03/29/00 334,000 20.01%
Hemlock Federal Fin. Corp.-IL HMLK $ 228 $ 23 $14.31 02/01/00 03/01/00 338,000 20.88%
First Southern Bancshares-AL FSTH $ 176 $ 19 $11.75 08/31/99 09/30/99 275,000 16.73%
First Commonwealth Fin Corp-PA FCF $4,203 $732 $23.63 08/31/99 09/29/99 2,000,000 6.45%
GBC Bancorp-CA GBCB $1,660 $231 $18.00 06/16/99 07/14/99 2,000,000 15.60%
Bancfirst Corp-OK BANF $2,279 $261 $28.00 05/03/99 06/01/99 1,000,000 10.73%
EFC Bancorp, Inc.-IL EFC $ 432 $ 72 $10.13 04/23/99 06/01/99 1,779,233 25.00%
First Banks America, Inc.-MO FBA $ 722 $ 54 $16.81 01/04/99 02/17/99 400,000 12.42%
Peekskill Financial Corp.-NY Acqrd $ 213 $ 39 $13.75 12/23/98 01/27/99 800,000 28.15%
WesterFed Financial Corp.-MT WSTR $1,000 $109 $19.50 11/22/98 12/24/98 1,100,000 19.70%
Tri-County Bancorp, Inc.-WY Acqrd $ 87 $ 13 $11.25 10/20/98 12/07/98 313,000 26.81%
Klamath First Bancorp, Inc.-OR KFBI $1,048 $177 $17.88 10/23/98 01/08/99 1,983,353 20.00%
Mississippi View Holding Co.-MN MIVI $ 70 $ 14 $18.62 04/13/98 05/11/98 220,050 30.00%
S&T Bancorp-PA STBA $1,920 $626 $44.25 01/20/98 02/20/98 1,500,000 30.00%
------
Average (for fairness opinion) 17.72%
Median (for fairness opinion) 19.70%
Average (for preliminary valuation) 18.33%
Median (for preliminary valuation) 19.85%
---------------------
Tender Offer Results Offer Price Range Offer Price Premium Final Pre-Tender
--------------------- --------------------------- ---------------------
# of % of Low High Final Low High Final Pr/High Shares Out-
Institution Shares Outst. Price Price Price Price Price Price Price standing
- ----------- ------ ------ ------- ----- ----- ------ ----- ------ ----- --------
(%) ($) ($) ($) (%) (%) (%) (%)
Republic Bancorp, Inc.-KY 747,325 5.06% $ 8.00 $10.00 $10.00 8.47% 35.59% 35.59% 100.00% 14,771,180
- ------------------------------------------------------------------------------------------------------------------------------------
Souside Bankshares-MO NA 0.00% $10.75 $12.25 NA 17.81% 34.25% NA NA 8,393,528
Citizens First Fin. Corp.-IL 391,096 20.00% $15.00 $17.00 $16.00 7.14% 21.43% 14.29% 94.12% 1,955,014
Promistar Fin Corp (BT Financial)-PA 1,730,013 10.37% $18.00 $20.00 $19.50 9.09% 21.21% 18.18% 97.50% 16,683,294
NASB Financial, Inc.-MO 517,265 5.73% $12.50 $12.50 $12.50 17.65% 17.65% 17.65% 100.00% 9,021,914
PS Financial, Inc.-IL 367,244 22.00% $12.00 $14.50 $12.00 3.81% 25.43% 3.81% 82.76% 1,669,290
Hemlock Federal Fin. Corp.-IL 419,947 25.95% $15.00 $17.50 $15.00 4.80% 22.27% 4.80% 85.71% 1,618,563
First Southern Bancshares-AL 307,871 18.73% $12.75 $14.00 $13.50 8.51% 19.15% 14.89% 96.43% 1,643,562
First Commonwealth Fin Corp-PA 1,909,710 6.16% $23.00 $26.00 $26.00 -2.65% 10.05% 10.05% 100.00% 30,991,646
GBC Bancorp-CA 1,327,579 10.35% $18.00 $22.00 $22.00 0.00% 22.22% 22.22% 100.00% 12,821,198
Bancfirst Corp-OK 1,186,502 12.73% $34.00 $38.00 $38.00 21.43% 35.71% 35.71% 100.00% 9,321,295
EFC Bancorp, Inc.-IL 1,709,544 24.02% $10.00 $12.00 $12.00 -1.23% 18.52% 18.52% 100.00% 7,116,934
First Banks America, Inc.-MO 314,848 9.78% $16.50 $21.00 $21.00 -1.84% 24.93% 24.93% 100.00% 3,220,830
Peekskill Financial Corp.-NY 800,040 28.15% $14.75 $16.75 $16.75 7.27% 21.82% 21.82% 100.00% 2,842,069
WesterFed Financial Corp.-MT 1,082,854 19.38% $18.00 $20.00 $20.00 -7.69% 2.56% 2.56% 100.00% 5,588,862
Tri-County Bancorp, Inc.-WY 313,000 26.81% $11.00 $14.00 $14.00 -2.22% 24.44% 24.44% 100.00% 1,167,498
Klamath First Bancorp, Inc.-OR 1,983,353 20.00% $18.00 $20.00 $19.50 0.70% 11.89% 9.09% 97.50% 9,916,766
Mississippi View Holding Co.-MN 268,351 36.40% $19.50 $21.50 $21.25 4.73% 15.47% 14.12% 98.84% 737,228
S&T Bancorp-PA 439,606 3.11% $46.00 $49.00 $49.00 3.95% 10.73% 10.73% 100.00% 14,143,655
------ ----- ------ ------ -------
Average (for fairness opinion) 16.04% 5.25% 20.81% 16.86% 97.38%
Median (for fairness opinion) 18.73% 4.73% 21.43% 14.89% 100.00%
----- ------ ------
----- ------ ------
Average (for preliminary valuation) 16.65% 5.07% 19.99% 15.75% 97.23%
Median (for preliminary valuation) 19.05% 4.34% 21.32% 14.59% 100.00%
----- ------ ------
Source: Corporate securities filings and press releases
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ESSEX
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33
Discounted Cash Flow Analysis
Five year financial projections were prepared, based on a continuation of
Essex's fiscal 2001 business plan, to evaluate the potential impact to book
value per common share and earnings per common share while maintaining the
current capital structure.
Despite strong projected earnings growth, it does not appear that earnings will
cover the preferred dividends, which are increasing at a compounded rate. Thus,
it appears no value is generated under this scenario for the common
shareholders.
[LOGO]
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ESSEX
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Discounted Cash Flow Analysis
. Value determined by present value of (1) dividends over the next 5 years plus
(2) the terminal value, reflecting multipliers applied to year 5 earnings and
book value incorporating Essex's business plan.
. Annual asset growth: 7.5% annually, reflecting slightly faster loan growth,
and funded primarily by deposits, as some borrowings are repaid in 2001 and
maintained constant after
. Key operating assumptions
. Constant interest rates
. No significant change in asset mix (except as noted above)
. No significant change in risk profile -- maintain constant loan loss
provisions
. Other income growth moderates after strong growth in 2001
. Operating expense growth moderates after strong growth in 2001
. Earnings are taxable at a 39.55% effective rate (consistent with
budget)
. No dividends paid to preferred or common shareholders
. No change in common shares outstanding (no exercise of warrants or
options)
. Terminal value multipliers are derived from thrift acquisition pricing
ratios
. 15% discount rate applied to future cash flows (dividends and terminal
value)
. No significant change in regulatory or competitive environment
. Summary of Projections
. Earnings increase from $0.568 million in 2001 to $1.860 million in
2005
. Book value per common share deficit continues to grow to -$10.17 in
Year 5
. Earnings per common share deficit begins to improve but remains
negative -$1.44 in Year 5
. Common Stock Valuation Conclusion Pursuant to DCF Technique
. No value can determined pursuant to a stand alone operation while
maintaining current capital structure, and common shareholder position
continues to deteriorate
[LOGO]
- ------
ESSEX] 35
- ------
Application of Common Stock Valuation Techniques to Essex Bancorp, Inc.
[LOGO]
- ------
ESSEX
- ------
Relevancy of Common Stock Valuation Techniques to Essex Bancorp, Inc.
. Peer Group Analysis
. Technique determines value of minority stock without any premium
. Application of technique suggests no value for Essex common shares given
the negative book value per common share and negative earnings per
common share
. Comparable Transactions Analysis
. Technique determines value of stock pursuant to merger transactions,
based on pricing multiples paid for earnings, book value, core deposits
and assets
. Application of technique suggests a nominal common stock value for
Essex, if any
. Premium Paid Analyses (Relative to Pre-Announcement Stock Price)
. Acquisitions of publicly-traded banks and thrifts
. Given that warrant holders already have de facto control, and since
Essex's stock is trading well above the value implied by
fundamentals, the premium paid for control in acquisitions of
publicly-traded banks and thrifts serves to set an upper limit for
the appropriate premium for the outstanding shares of common stock
in Essex's case
. Other "going private" transactions of publicly-traded banks/thrifts &
non-banking companies
. In applying the wide range of premiums paid in the limited number
of other "going private" transactions of public banks and thrifts
and non-banking companies, the uniqueness of Essex's characteristics
and reasons for the privatization must be considered
. "Dutch tender auction" transactions for publicly-traded banks and
thrifts
. Dutch auction transactions typically do not result in control by
the remaining common shareholders, while the Essex warrant holders
have de facto control even before the privatization transaction,
thus the "Dutch tender auction" premium paid by publicly traded
banks and thrifts serves to set the lower limit for the appropriate
premium for the outstanding shares of common stock in Essex's case
. Discounted cash flow analysis
. Since earnings per common share is not projected to turn positive in the
next 5 years and the book value per common share deficit deteriorates
further, the application of this technique suggests no value for the
Essex common stock absent a capital structure transaction
[LOGO]
- ------
ESSEX 37
- ------
Essex Common Stock Price Utilized to Determine Premium
. Essex's stock price appears to be subject to speculation, periodically
resulting in sharp price increases and decreases
. Given such volatility, RP Financial has utilized an average closing stock
price for the prior month, computed as a 22 day average
. Historical daily price volatility and the 22 day rolling average are
highlighted in the chart below for the period 1999 to present
Essex Bancorp, Inc.
Daily Closing Price Vs. 22 Day Closing Average and 22 Day Volume
Weighted Closing Average
[GRAPH]
As of As of
1/31/01 3/20/01
--------- ---------
Closing Price $ 1.40 $ 1.34
22 Day Average $ 1.18 $ 1.23
22 Day Vol. Wgtd. Avg. $ 1.16 $ 1.23
--Daily Closing Price--22 Day Closing Average--22 Day Volume Weighted Closing
Average
[LOGO]
- ------
ESSEX 38
- ------
Application of Common Stock Valuation Techniques to Essex Bancorp, Inc.
Application of Premium Analyses to Essex Bancorp
Essex Indicated Privatization Premium
-----------------------------------
Base Stock Indicated Indicated
Indicated Price Per Premium Stock Aggregate
Premium Share (1) Per Share Price Proceeds
------- --------- --------- ----- --------
($000)
Valuation Technique
- -------------------
Acquisition of Publicly Traded Banks & Thrifts 1998-Present
Publicly Traded Banks (Median) 25.00% $1.1773 $0.29 $1.47 $1,561
Publicly Traded Thrifts (Median) 26.56% $1.1773 $0.31 $1.49 $1,580
Other "Going Private" Transactions of 17.10% $1.1773 $0.20 $1.38 $1,462
Publicly-Traded Banks & Thrifts 1998-Present (Median)
"Going Private" Transactions of Non-Banking Companies
Continuing Shareholders >50% Control 2000-Present (Median) 48.56% $1.1773 $0.57 $1.75 $1,855
Continuing Shareholders >90% Control 2000-Present (Median) 41.20% $1.1773 $0.49 $1.66 $1,763
"Dutch Tender Auction" Transactions of 14.89% $1.1773 $0.18 $1.35 $1,435
Publicly-Traded Banks & Thrifts 1998-Present (Median)
Valuation Range
- ---------------
Upper Value 24.00% $1.1773 $0.28 $1.46 $1,548
Lower Value 16.00% $1.1773 $0.19 $1.37 $1,448
Notes:
- ------
(1) Reflects 22 trading day average prior to February 1, 2001
(2) Common shares outstanding currently (000) 1,061
[LOGO]
- ------
ESSEX 39
- ------
ESSEX BANCORP, INC.
DISCOUNTED CASH FLOW ANALYSIS: STAND ALONE BASIS
RP Financial, LC.
- ----------------
Financial Services Industry Consultants
- -------------------------------------------------------
I. BASE CASE SCENARIO Actual Projected
- --------------------- -----------------------------------------------------
Multiples Based On Current Peer Group Pricing Ratios Dec. 31 Fiscal Fiscal Fiscal Fiscal Fiscal
Year 1 Conforms with FY 2001 Before Privatization 2000 2001 2002 2003 2004 2005
- ------------------------------------------------------- ---- ---- ---- ---- ---- -----
($000) ($000) ($000) ($000) ($000) ($000)
- -------------------------------------------------------
BALANCE SHEET DATA ($000)
- -------------------------------------------------------
Assets
- ------
Cash and Due From Banks $ 17,783 $ 17,326 $ 18,192 $ 19,102 $ 20,057 $ 21,060
Investment Securities (Including FHLB Stock) $ 5,026 $ 5,007 $ 5,257 $ 5,520 $ 5,796 $ 6,086
Loans Receivable (net) and Loans Held for Sale $ 266,950 $ 289,529 $ 311,822 $ 336,144 $ 363,036 $392,805
Goodwill $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Other Assets $ 17,963 $ 19,064 $ 20,017 $ 21,018 $ 22,069 $ 23,173
--------- --------- --------- --------- --------- --------
Total Assets $ 307,722 $ 330,926 $ 355,289 $ 381,785 $ 410,958 $443,123
Liabilities
- -----------
Deposits $ 242,596 $ 275,128 $ 298,514 $ 323,888 $ 351,418 $381,289
Borrowings (Excludes Borrowings to Fund Privatization) $ 41,100 $ 31,150 $ 31,150 $ 31,150 $ 31,150 $ 31,150
Other Liabilities $ 1,888 $ 2,213 $ 2,320 $ 2,299 $ 2,475 $ 2,909
--------- --------- --------- --------- --------- --------
Total Liabilities $ 285,584 $ 308,491 $ 331,984 $ 357,336 $ 385,043 $415,347
Stockholders Equity
- -------------------
Common Stock (Assumes no exercise of warrants or stock options) $ 11 $ 11 11 $ 11 $ 11 $ 11
Preferred Stock (Assumes dividends continue to accumulate) $ 15,007 $ 15,007 $ 15,007 $ 15,007 $ 15,007 $ 15,007
Retained Earnings (Accumulated Deficit) -$ 1,839 -$ 1,271 -$ 401 $ 742 $ 2,210 $ 4,070
Treasury Stock $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Additional Paid-In Capital $ 8,688 $ 8,688 $ 8,688 $ 8,688 $ 8,688 $ 8,688
Holding Loss on Securities AFS $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
---------- --------- --------- --------- --------- --------
Total Stockholders Equity $ 21,867 $ 22,435 $ 23,305 $ 24,448 $ 25,916 $ 27,776
---------- --------- --------- --------- --------- --------
Total Liabilities and Stockholders Equity $ 307,451 $ 330,926 $ 355,289 $ 381,785 $ 410,958 $443,123
Tangible Stockholders Equity $ 21,867 $ 22,435 $ 23,305 $ 24,448 $ 25,916 $ 27,776
- -------------------------------------------------------
BALANCE SHEET COMPOSITION (% of Assets)
- -------------------------------------------------------
Assets
- ------
Cash and Due From Banks 5.78% 5.24% 5.12% 5.00% 4.88% 4.75%
Investment Securities (Including FHLB Stock) 1.63% 1.51% 1.48% 1.45% 1.41% 1.37%
Loans Receivable (net) and Loans Held for Sale 86.75% 87.49% 87.77% 88.05% 88.34% 88.64%
Goodwill 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other Assets 5.84% 5.76% 5.63% 5.51% 5.37% 5.23%
--------- --------- --------- --------- --------- --------
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Liabilities
- -----------
Deposits 78.84% 83.14% 84.02% 84.84% 85.51% 86.05%
Borrowings (Excludes Borrowings to Fund Privatization) 13.36% 9.41% 8.77% 8.16% 7.58% 7.03%
Other Liabilities 0.61% 0.67% 0.65% 0.60% 0.60% 0.66%
--------- --------- --------- --------- --------- --------
Total Liabilities 92.81% 93.22% 93.44% 93.60% 93.69% 93.73%
Stockholders Equity
- -------------------
Common Stock (Assumes no exercise of warrants or stock options) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Preferred Stock (Assumes dividends continue to accumulate) 4.88% 4.53% 4.22% 3.93% 3.65% 3.39%
Retained Earnings (Accumulated Deficit) -0.60% -0.38% -0.11% 0.19% 0.54% 0.92%
Treasury Stock 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Additional Paid-In Capital 2.82% 2.63% 2.45% 2.28% 2.11% 1.96%
Holding Loss on Securities AFS 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
--------- --------- --------- --------- --------- --------
Total Stockholders Equity/Assets 7.11% 6.78% 6.56% 6.40% 6.31% 6.27%
Total Liabilities and Stockholders Equity 99.91% 100.00% 100.00% 100.00% 100.00% 100.00%
Tangible Stockholders Equity 7.11% 6.78% 6.56% 6.40% 6.31% 6.27%
- -------------------------------------------------------
OTHER KEY BALANCE SHEET RATIOS (%)
- -------------------------------------------------------
Loans/Deposits 110.04% 105.23% 104.46% 103.78% 103.31% 103.02%
Interest Earning Assets/Interest Bearing Liabilities 102.14% 101.82% 101.70% 101.61% 101.65% 101.82%
Comments
- --------
[GRAPH]
[GRAPH]
[GRAPH]
[GRAPH]
RP Financial, LC. ESSEX BANCORP, INC.
- -----------------
Financial Services Industry Consultants DISCOUNTED CASH FLOW ANALYSIS: STAND ALONE BASIS
- ------------------------------------------------------
I. BASE CASE SCENARIO Actual Projected
- --------------------- ----------------------------------------------
Multiples Based On Current Peer Group Pricing Ratios Dec. 31 Fiscal Fiscal Fiscal Fiscal Fiscal
Year 1 Conforms with FY 2001 Before Privatization 2000 2001 2002 2003 2004 2005
- ------------------------------------------------------ ---- ---- ---- ---- ---- ----
($000) ($000) ($000) ($000) ($000) ($000)
- ------------------------------------------------------
ANNUAL GROWTH RATE (%)
- ------------------------------------------------------
Assets
- ------
Cash and Due From Banks -2.57% 5.00% 5.00% 5.00% 5.00%
Investment Securities (Including FHLB Stock) -0.38% 5.00% 5.00% 5.00% 5.00%
Loans Receivable (net) and Loans Held for Sale 8.46% 7.70% 7.80% 8.00% 8.20%
Other Assets 6.13% 5.00% 5.00% 5.00% 5.00%
----- ---- ---- ---- ----
Total Assets 7.54% 7.36% 7.46% 7.64% 7.83%
Liabilities
- -----------
Deposits 13.41% 8.50% 8.50% 8.50% 8.50%
Borrowings (Excludes Borrowings to Fund Privatization) -24.21% 0.00% 0.00% 0.00% 0.00%
Other Liabilities 17.23% 4.84% -0.92% 7.64% 17.54%
------ ---- ----- ---- -----
Total Liabilities 8.02% 7.62% 7.64% 7.75% 7.87%
Stockholders Equity
- -------------------
Common Stock (Assumes no exercise of warrants or stock options) 0.00% 0.00% 0.00% 0.00% 0.00%
Preferred Stock (Assumes dividends continue to accumulate) 0.00% 0.00% 0.00% 0.00% 0.00%
Retained Earnings (Accumulated Deficit) -30.86% -68.47% -285.12% 197.72% 84.19%
Treasury Stock 0.00% 0.00% 0.00% 0.00% 0.00%
Additional Paid-In Capital 0.00% 0.00% 0.00% 0.00% 0.00%
Holding Loss on Securities AFS 0.00% 0.00% 0.00% 0.00% 0.00%
------ ------ ------- ------ -----
Total Stockholders Equity 2.60% 3.88% 4.91% 6.00% 7.18%
Total Liabilities and Stockholders Equity 7.64% 7.36% 7.46% 7.64% 7.83%
- ------------------------------------------------------
AVERAGE YIELDS AND COSTS
- ------------------------------------------------------
Assets
- ------
Cash and Due From Banks 4.75% 4.45% 4.45% 4.45% 4.45% 4.45%
Investment Securities (Including FHLB Stock) 6.75% 7.00% 7.00% 7.00% 7.00% 7.00%
Loans Receivable (net) and Loans Held for Sale
(Including Fee Income) 8.25% 8.29% 8.29% 8.29% 8.29% 8.29%
Other Assets 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
------ ----- ----- ----- ------ -----
Total Assets 8.05% 8.04% 8.05% 8.06% 8.07% 8.07%
Liabilities
- -----------
Deposits 5.00% 5.27% 5.27% 5.27% 5.27% 5.27%
Borrowings (Excludes Borrowings to Fund Privatization) 6.85% 7.06% 7.06% 7.06% 7.06% 7.06%
Other Liabilities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
------ ----- ----- ----- ------ -----
Total Liabilities 5.25% 5.48% 5.44% 5.43% 5.42% 5.41%
Other Income Growth Rate 21.00% 10.00% 10.00% 10.00% 10.00%
Operating Expense Growth Rate 18.78% 6.00% 6.00% 6.00% 6.00%
- ------------------------------------------------------
I. BASE CASE SCENARIO
- ---------------------
Multiples Based On Current Peer Group Pricing Ratios
Year 1 Conforms with FY 2001 Before Privatization Comments
- ------------------------------------------------------ --------
- ------------------------------------------------------
ANNUAL GROWTH RATE (%)
- ------------------------------------------------------
Assets
- ------
Cash and Due From Banks Assumes moderate growth resumes in Year 2
Investment Securities (Including FHLB Stock) Assumes moderate growth resumes in Year 2
Loans Receivable (net) and Loans Held for Sale Assumes slightly lower loan growth beginning in Year 2
Other Assets Assumes slightly lower other asset growth beginning in Year 2
Total Assets
Liabilities
- -----------
Deposits Assumes deposit growth moderates in Year 2
Borrowings (Excludes Borrowings to Fund Privatization) No change in FHLB advances, beginning in Year 2
Other Liabilities
Total Liabilities
Stockholders Equity
- -------------------
Common Stock (Assumes no exercise of warrants or stock options)
Preferred Stock (Assumes dividends continue to accumulate)
Retained Earnings (Accumulated Deficit)
Treasury Stock
Additional Paid-In Capital
Holding Loss on Securities AFS
Total Stockholders Equity
Total Liabilities and Stockholders Equity
- ------------------------------------------------------
AVERAGE YIELDS AND COSTS
- ------------------------------------------------------
Assets
- ------
Cash and Due From Banks Maintain constant interest rates
Investment Securities (Including FHLB Stock) Maintain constant interest rates
Loans Receivable (net) and Loans Held for Sale Maintain constant interest rates
(Including Fee Income)
Other Assets
Total Assets
Liabilities
- -----------
Deposits Maintain constant interest rates
Borrowings (Excludes Borrowings to Fund Privatization) Maintain constant interest rates
Other Liabilities
Total Liabilities
Other Income Growth Rate Other income growth rate moderates in Year 2
Operating Expense Growth Rate Operating expense growth rate moderates in Year 2
2
ESSEX BANCORP, INC.
DISCOUNTED CASH FLOW ANALYSIS: STAND ALONE BASIS
RP Financial, LC.
- -----------------
Financial Services Industry Consultants
- --------------------------------------------------------
L. BASE CASE SCENARIO Projected
- --------------------- Actual ----------------------------------------------------
Multiples Based On Current Peer Group Pricing Ratios Dec. 31 Fiscal Fiscal Fiscal Fiscal Fiscal
Year 1 Conforms with FY 2001 Before Privatization 2000 2001 2002 2003 2004 2005 Comments*
- -------------------------------------------------------- --------- --------- --------- --------- --------- -------- --------
($000) ($000) ($000) ($000) ($000) ($000)
- --------------------------------------------------------
INCOME STATEMENT ($000) Trailing 12
- --------------------------------------------------------
Interest Income Months
Cash and Due From Banks $ 674 $ 781 $ 790 $ 830 $ 871 $ 915
Investment Securities (Including FHLB Stock) $ 397 $ 351 $ 359 $ 377 $ 396 $ 416
Loans Receivable (net) and Loans Held for Sale $ 21,131 $ 23,052 $ 24,911 $ 26,842 $ 28,964 $ 31,311
--------- --------- --------- --------- --------- ---------
Total Interest Income $ 22,202 $ 24,184 $ 26,060 $ 28,049 $ 30,231 $ 32,641
Interest Expense
Deposits $ 11,400 $ 13,629 $ 15,101 $ 16,385 $ 17,777 $ 19,289
Borrowings (Excludes Borrowings to Fund Privatization) $ 3,159 $ 2,549 $ 2,198 $ 2,198 $ 2,198 $ 2,198
--------- --------- --------- --------- --------- ---------
Total Interest Expense $ 14,559 $ 16,178 $ 17,299 $ 18,582 $ 19,975 $ 21,486 [GRAPH]
--------- --------- --------- --------- --------- --------- APPEARS
Net Interest Income $ 7,643 $ 8,007 $ 8,762 $ 9,467 $ 10,256 $ 11,155 HERE
Provision for Loan Losses (Maintain constant level) -$740 -$325 -$325 -$325 -$325 -$325
--------- --------- --------- --------- --------- ---------
Net Interest Income After Loan Losses $ 6,903 $ 7,682 $ 8,437 $ 9,142 $ 9,931 $ 10,830
Other Income $ 3,115 $ 3,769 $ 4,146 $ 4,561 $ 5,017 $ 5,518
Operating Expense -$8,850 -$10,512 -$11,143 -$11,811 -$12,520 -$13,271
--------- --------- --------- --------- --------- ---------
Net Income Before Tax $ 1,168 $ 939 $ 1,440 $ 1,891 $ 2,428 $ 3,078
Income Tax (Maintain constant effective tax rate) $ 2,704 -$371 -$570 -$748 -$960 -$1,217
--------- --------- --------- --------- --------- ---------
Net Income $ 3,872 $ 568 $ 871 $ 1,143 $ 1,467 $ 1,860
Net Increase From Other Activities $ 0 $ 0 $ 0 $ 0 $ 0
--------- --------- --------- --------- ---------
Pro Forma Earnings $ 568 $ 871 $ 1,143 $ 1,467 $ 1,860
- --------------------------------------------------------
INCOME STATEMENT/AVERAGE ASSETS (%) $ 277,739 FY 1999 assets
- --------------------------------------------------------
Interest Income
Cash and Due From Banks 0.23% 0.24% 0.23% 0.23% 0.22% 0.21%
Investment Securities (Including FHLB Stock) 0.14% 0.11% 0.10% 0.10% 0.10% 0.10%
Loans Receivable (net) and Loans Held for Sale 7.22% 7.22% 7.26% 7.28% 7.31% 7.33%
--------- --------- --------- --------- --------- ---------
Total Interest Income 7.58% 7.57% 7.60% 7.61% 7.63% 7.64%
Interest Expense
Deposits 3.89% 4.27% 4.40% 4.45% 4.49% 4.52%
Borrowings (Excludes Borrowings to Fund Privatization) 1.08% 0.80% 0.64% 0.60% 0.55% 0.51%
--------- --------- --------- --------- --------- --------- [GRAPH]
Total Interest Expense 4.97% 5.07% 5.04% 5.04% 5.04% 5.03% APPEARS
--------- --------- --------- --------- --------- --------- HERE
Net Interest Income 2.61% 2.51% 2.55% 2.57% 2.59% 2.61%
Provision for Loan Losses (Maintain constant level) -0.25% -0.10% -0.09% -0.09% -0.08% -0.08%
--------- --------- --------- --------- --------- ---------
Net Interest Income After Loan Losses 2.36% 2.41% 2.46% 2.48% 2.51% 2.54%
Other Income 1.06% 1.18% 1.21% 1.24% 1.27% 1.29%
Operating Expense -3.02% -3.29% -3.25% -3.20% -3.16% -3.11%
--------- --------- --------- --------- --------- ---------
Net Income Before Tax 0.40% 0.29% 0.42% 0.51% 0.61% 0.72%
Income Tax (Maintain constant effective tax rate) 0.92% -0.12% -0.17% -0.20% -0.24% -0.29%
--------- --------- --------- --------- --------- ---------
Net Income/Average Assets 1.32% 0.18% 0.25% 0.31% 0.37% 0.44%
Net Increase From Other Activities 0.00% 0.00% 0.00% 0.00% 0.00% [GRAPH]
--------- --------- --------- --------- --------- APPEARS
Pro Forma Earnings 0.18% 0.25% 0.31% 0.37% 0.44% HERE
- --------------------------------------------------------
OTHER OPERATING STATEMENT RATIOS (%)
- --------------------------------------------------------
Efficiency Ratio 82.26% 89.27% 86.33% 84.20% 81.98% 79.59%
Yield Cost Spread 2.80% 2.56% 2.61% 2.63% 2.65% 2.67%
Effective Tax Rate 35.00% 39.55% 39.55% 39.55% 39.55% 39.55%
3
RP Financial, L.C. ESSEX BANCORP, INC.
- ------------------
Financial Services Industry Consultants DISCOUNTED CASH FLOW ANALYSIS: STAND ALONE BASIS
I. BASE CASE SCENARIO Actual Projected
--------------------- ----------------------------------------------
Multiples Based On Current Peer Group Pricing Ratios Dec. 31 Fiscal Fiscal Fiscal Fiscal Fiscal
Year 1 Conforms with FY 2001 Before Privatization 2000 2001 2002 2003 2004 2005
-------------------------------------------------------- ---- ---- ---- ---- ---- ----
($000) ($000) ($000) ($000) ($000) ($000)
--------------------------------------------------------
COMMON PER SHARE DATA
--------------------------------------------------------
Shares Outstanding
------------------
Public Shares Issued and Outstanding (000) 1,060.6 1,060.6 1,060.6 1,060.6 1,060.6 1,060.6
New Treasury Shares (000) 0.0 0.0 0.0 0.0 0.0 0.0
Shares From Exercise of Options & Warrants (000) 0.0 0.0 0.0 0.0 0.0 0.0
---------- --------- -------- -------- -------- ---------
Common Shares Issued & Outstanding (000) 1,060.6 1,060.6 1,060.6 1,060.6 1,060.6 1,060.6
Distribution of Shares
----------------------
Public Shares Issued and Outstanding (%) 100.00% 100.00% 100.00 100.00% 100.00% 100.00%
New Treasury Shares (%) 0.00% 0.00% 0.00 0.00% 0.00% 0.00%
Shares From Exercise of Options & Warrants (%) 0.00% 0.00% 0.00 0.00% 0.00% 0.00%
---------- --------- -------- -------- -------- ---------
Common Shares Issued & Outstanding (%) 100.00% 100.00% 100.00 100.00% 100.00% 100.00%
Weighted Avg Shares Outstanding (EPS) (000) 1,060.6 1,060.6 1,060.6 1,060.6 1,060.6 1,060.6
Stock Price/Share (End of Period) ($) $ 1.25 $ 1.25 $ 1.25 $ 1.25 $ 1.25 $ 1.25
-------------------------------------
Common Book Value Per Share
---------------------------
Tangible Stockholders Equity ($000) $ 21,867 $ 22,435 $ 23,305 $ 24,448 $ 25,916 $ 27,776
Less: Preferred Stock (Assumes dividends
continue to accumulate) -$ 15,007 -$ 15,007 -$ 15,007 -$ 15,007 $ 15,007 -$ 15,007
---------- ---------- --------- --------- -------- ----------
Tangible Common Stock (Assumes no exercise of warrants
or stock $ 6,860 $ 7,428 $ 8,298 $ 9,441 $ 10,909 $ 12,769
Less: Accumulated Dividends on Preferred ($000) -$ 9,342 -$ 11,687 -$ 14,254 -$ 17,063 $ 20,499 -$ 23,501
---------- ---------- --------- --------- -------- ----------
Tangible Common Stock (Assumes no exercise of warrants
or stock -$ 2,482 -$ 4,259 -$ 5,956 -$ 7,622 $ 9,590 -$ 10,732
------------------------------------------------------------------------------------------------------------------------------
Tangible Common Book Value Per Share ($) -$ 2.34 -$ 4.02 -$ 5.62 -$ 7.19 -$ 9.04 -$ 10.12
------------------------------------------------------------------------------------------------------------------------------
Price/Tangible Common Book Per Share (x) -0.53x -0.31x -0.22x -0.17x -0.14x -0.12x
Common Earnings Per Share (Common EPS)
--------------------------------------
Pro Forma Net Income ($000) $ 3,872 $ 568 $ 871 $ 1,143 $ 1,467 $ 1,860
Less: Preferred Dividends ($000) -$ 2,143 -$ 2,344 -$ 2,571 -$ 2,818 -$ 3,088 -$ 3,419
---------- ---------- --------- ----------- -------- ----------
Pro Forma Common Net Income ($000) $ 1,729 -$ 1,776 -$ 1,700 -$ 1,675 -$ 1,621 -$ 1,559
------------------------------------------------------------------------------------------------------------------------------
Pro Forma Common Net Income Per Share ($) $ 3.65 -$ 1.67 -$ 1.60 -$ 1.58 -$ 1.53 -$ 1.47
------------------------------------------------------------------------------------------------------------------------------
Price/Common EPS (x) 0.34x - 0.75x -0.78x -0.79x -0.82x -0.85x
Return on Average Common Equity (%) -115.71% 52.70% 33.29% 24.67% 18.83% 15.34%
Common Dividends Per Share
--------------------------
Payout Ratio (%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Gross Common Dividends Paid ($000) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Common Dividends Per Share ($) $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00
Common Dividend Yield (%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Retained Earnings (Accumulated Deficit) ($000) $ 3,872 $ 568 $ 871 $ 1,143 $1,467 $ 1,860
Comments
--------
Terminal Value: Book Value Approach
------------------------------------
Peer Group Essex Indicated
Multiple Bancorp Value Assumes sale of control in Year 5
-------- ------- -----
1.53x -$10.12 $0.00 NOTE: If negative, then value is zero
P/B Ratio is not meaningful
Terminal Value: Earnings Approach
---------------------------------
Peer Group Essex Indicated
Multiple Bancorp Value Assumes sale of control in Year 5
-------- ------- -----
23.28x -$1.47 $0.00 NOTE: If negative, then value is zero
P/E Ratio is not meaningful
-$3.97 FY 1999 common book value per share
DISCOUNTED CASH FLOW ANALYSIS SUMMARY
-------------------------------------
Present Common Dividends Per Share Paid Each Year
------------------------------------------------------- Terminal
Present Value Analysis (15% Discount Rate) Value Year 1 Year 2 Year 3 Year 4 Year 5 Value Yr 5
------------------------------------------ ----- ------ ------ ------ ------ ------ ----------
Common Dividends Per Share $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00
----------
Terminal Value $ 0.00 $ 0.00
----------------------------------------------------------- ----------
Total Present Value $ 0.00
-----------------------------------------------------------
Terminal Terminal
Value Assigned Value
By Approach Weight Conclusion
----------- ------ ----------
$0.00 33.33% $0.00 Book Value Approach
$0.00 66.67% $0.00 Earnings Approach
------ -----
100.00% $0.00
=====
RP Financial, LC.
-----------------
Financial Services Industry Consultants
Going Private Transactions 2000 to Date: Pending and Announced Non-Bank Deals
In Which Continuing Shareholders Had Majority Control on a Pre-Transaction Basis
State
------------- Going Pre-Transaction Common
Head- Hldg Private Ownership/Control of Required Date
Issuer (Ticker/Exchange) qrtrs Co. Structure Continuing Shareholders Vote Announced
- ------------------------ ----- ---- --------- ----------------------- ---- ---------
- ----------------------------------------------------------------------------------------------------------------------------------
American Educational Products CO CO Merger Sub 55.00% Majority of 06/23/00
(AMEP/NASDAQ Small Cap) minority
shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Azurix Corp. (AZX/NYSE) TX DE Merger Sub 67.00% Majority of 10/26/00
minority
shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Buffets Inc. (BOCB/Nasdaq NMS) MN MN Merger Sub 77.2% of common Majority of all 06/01/00
88.6% of preferred shareholders
85.8% of equity
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Chandler Insurance Co. Ltd Cayman Islands Recapitalization 61.70% 2/3 of voting 06/01/00
(CHANF/Nasdaq NMS) shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
ComAir Holdings (COMR/Nasdaq NMS) KY KY Merger Sub 90.00% 2/3 of voting 10/16/99
shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Computer Power, Inc. (CUWR/OTC-BB) NJ NJ Merger Sub 56.89% Majority of all 05/30/00
shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Convergent Group, Inc. (CVGP/Nasdaq NMS) CO DE Merger Sub 55.50% Majority of all 10/14/00
shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Delco Remy International, Inc. (RMY/NYSE) IN DE Merger Sub 53.00% Majority of all 12/22/00
shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
ERC Industries, Inc. (ERCI/Nasadaq NMS) TX DE Merger Sub 89.70% Majority of 11/18/99
non-control
shares
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Fair Grounds Corp. (FGNO/OTC-BB) LA LA Reverse stock 73.50% Majority of 08/29/00
split voting shares
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
First Independence Corp (FICD/OTC-BB) MI MI Reverse stock 62.80% Majority of 05/01/00
split voting shares
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Gleason Corp. (GLE/NYSE) NY DE Merger Sub 73.70% 2/3 of all 12/09/99
shares
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Hertz Corp. (HRZ/NYSE) NJ DE Merger Sub 94.7% of voting power No vote of public 01/16/01
81.5% of economic shareholders
interests required
- ----------------------------------------------------------------------------------------------------------------------------------
Premium Analysis
----------------------------------
Pre-Announce Going Private Premium
Issuer (Ticker/Exchange) Price/Share Price/Share % Key Reasons for Going Private
- ------------------------ ------------ ------------- ------- -----------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
American Educational Products $ 9.50 $10.00 5.26% Provide public shareholders with fair price
(AMEP/NASDAQ Small Cap) Avoid potential conflicts of interest
Facilitate greater operating flexibility
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Azurix Corp. (AZX/NYSE) $ 6.13 $ 8.38 36.73% Eliminates SEC filing obligations & costs
Provides liquidity for common shareholders
Facilitates change in structure to recapitalize
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Buffets Inc. (BOCB/Nasdaq NMS) $11.44 $13.85 21.09% Eliminates SEC filing obligations
Eliminates public company costs
Provides premium/liquidity for shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Chandler Insurance Co. Ltd $ 7.69 $10.00 30.04% Eliminates SEC filing obligations & costs
(CHANF/Nasdaq NMS) Provides liquidity for common shareholders
Facilitates change in structure to recapitalize
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
ComAir Holdings (COMR/Nasdaq NMS) $17.94 $23.50 31.01% Eliminates SEC filing obligations & costs
Provides liquidity for common shareholders
Facilitates change in structure to recapitalize
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Computer Power, Inc. (CUWR/OTC-BB) $ 0.25 $ 0.28 12.00% Eliminates public company costs
Greater operating flexibility
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Convergent Group, Inc. (CVGP/Nasdaq NMS) $ 4.72 $ 8.00 69.49% Provide public shareholders with fair price
Unfavorable outlook as a public company
Facilitate greater operating flexibility
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Delco Remy International, Inc. (RMY/NYSE) $ 5.44 $ 8.00 47.13% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
ERC Industries, Inc. (ERCI/Nasadaq NMS) $ 0.44 $ 1.60 263.64% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Fair Grounds Corp. (FGNO/OTC-BB) $33.25 $40.00 20.30% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
First Independence Corp (FICD/OTC-BB) $ 7.00 $10.50 50.00% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Gleason Corp. (GLE/NYSE) $18.00 $23.00 27.78% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Hertz Corp. (HRZ/NYSE) $24.25 $35.50 46.39% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- ----------------------------------------------------------------------------------------------------------------------------------
Fairness
Issuer (Ticker/Exchange) Opinion
- ------------------------ -------
- -----------------------------------------------------------------------------
American Educational Products D.A. Davidson
(AMEP/NASDAQ Small Cap)
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Azurix Corp. (AZX/NYSE) Wasserstein,
Perella & Co.
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Buffets Inc. (BOCB/Nasdaq NMS) US Bancorp/
Piper Jaffray
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Chandler Insurance Co. Ltd Stephens, Inc.
(CHANF/Nasdaq NMS)
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
ComAir Holdings (COMR/Nasdaq NMS) Morgan Stanley & Co
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Computer Power, Inc. (CUWR/OTC-BB) None
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Convergent Group, Inc. (CVGP/Nasdaq NMS) Morgan Stanley & Co.
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Delco Remy International, Inc. (RMY/NYSE) None
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
ERC Industries, Inc. (ERCI/Nasadaq NMS) Schroders & Co., Inc.
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Fair Grounds Corp. (FGNO/OTC-BB) Duff & Phelps
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
First Independence Corp (FICD/OTC-BB) First of Michigan,
Division of Fahnestock
& Co.
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Gleason Corp. (GLE/NYSE) Bear Stearns & Co. Inc.
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Hertz Corp. (HRZ/NYSE) Lazard Freres & Co.
- -----------------------------------------------------------------------------
RP Financial, LC.
- ----------------
Financial Services Industry Consultants
Going Private Transactions 2000 to Date: Pending and Announced Non-Bank Deals
In Which Continuing Shareholders Had Majority Control on a Pre-Transaction Basis
State
------------ Going Pre-Transaction Common
Head- Hldg Private Ownership/Control of Required
Issuer (Ticker/Exchange) qrtrs Co. Structure Continuing Shareholders Vote
- ----------------------- ----- --- ----------- ----------------------- ----
- -----------------------------------------------------------------------------------------------------------------------------
Holts Cigar Holdings (HOLT/Nasdaq NMS) PA DE Merger Sub 74.06% Majority of all
shareholders
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
In Home Health, Inc. (IHHI/Nasdaq NMS) MN MN Merger Sub 75.80% Majority of all
shareholders
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Legend Properties, Inc. (LPRO/OTC-BB) FL FL Merger Sub 80.00% No vote of public
shareholders
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Mikasa, Inc. (MKS/NYSE) NJ DE Merger Sub 54.90% Majority of all
shareholders
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
N-Vision, Inc. (NVSN/OTC-BB) VA DE Merger Sub 51.00% Majority of all
shareholders
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Neutral Posture Ergonomics, Inc. (NTRL/NASDAQ TX TX Merger Sub 62.00% 2/3 of all
Small Cap) shareholders
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Nostalgia Network, Inc. (NNET/OTC-BB) DC DE Merger Sub 69.90% Majority of all
76.9% of preferred shareholders
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Pameco Corp. (PAMC/OTC-BB) CO DE Merger Sub 87.00% No vote
required
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Petroglyph Energy, Inc. (PGEI/Nasdaq NMS) KS DE Merger Sub 59.00% Majority of all
shareholders
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Randers Killam Group (RGI/AMEX) NJ DE Merger Sub 96.00% No vote
required
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
RISCORP, Inc. (OTC) FL FL Merger Sub 90% of Class B No vote
86% of All Votes required
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Saratoga Beverage Group, Inc. (NA) FL DE Merger Sub 58.65% Majority of all
Involved Class A shareholders
& Class B shares
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Sel Drum International, Inc. (SDUM/OTC-BB) NY NY Merger Sub 96.70% Majority of all
shareholders
- -----------------------------------------------------------------------------------------------------------------------------
Premium Analysis
-------------------------------------
Date Pre-Announce Going Private Premium
Issuer (Ticker/Exchange) Announced Price/Share Price/Share % Key Reasons for Going Private
- ----------------------- --------- ----------- ----------- - -----------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Holts Cigar Holdings (HOLT/Nasdaq NMS) 11/10/00 $ 3.50 $ 5.50 57.14% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
In Home Health, Inc. (IHHI/Nasdaq NMS) 06/01/00 $ 1.97 $ 3.70 87.91% Eliminates SEC filing obligations
Eliminates public company costs
Provides premium for shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Legend Properties, Inc. (LPRO/OTC-BB) 10/13/00 $ 0.23 $ 0.50 122.22% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Mikasa, Inc. (MKS/NYSE) 09/10/00 $ 9.75 $16.50 69.23% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
N-Vision, Inc. (NVSN/OTC-BB) 10/15/00 $ 0.30 $ 0.50 66.67% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Neutral Posture Ergonomics, Inc. (NTRL/NASDAQ 10/27/00 $ 1.30 $ 2.27 75.03% Elim. SEC filing/S-corp status qual
Small Cap) ification
Eliminates public company costs
Provides liquidity for shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Nostalgia Network, Inc. (NNET/OTC-BB) 10/21/99 $ 0.03 $ 0.07 133.33% Eliminates SEC filing obligations
94.4% over 30 day average Eliminates public company costs
Provides liquidity for shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Pameco Corp. (PAMC/OTC-BB) 01/13/01 $ 0.19 $ 0.45 140.00% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Petroglyph Energy, Inc. (PGEI/Nasdaq NMS) $ 2.00 $ 2.85 42.50% Eliminates SEC filing obligations
Eliminates public company costs
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Randers Killam Group (RGI/AMEX) 10/06/98 $ 2.19 $ 4.50 105.71% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RISCORP, Inc. (OTC) 11/03/99 $ 1.81 $ 2.85 57.46% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Saratoga Beverage Group, Inc. (NA) 12/17/99 $ 6.43 $ 6.00 -6.69% Eliminates SEC filing obligations
37.3% premium over prior 30 day Eliminates public company costs
trading average Provides liquidity for shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Sel Drum International, Inc. (SDUM/OTC-BB) 11/13/00 $ 0.22 $ 0.40 82.65% Eliminates SEC filing obligations
Eliminates public company costs
Provides liquidity for shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Fairness
Issuer (Ticker/Exchange) Opinion
- ----------------------- -------
- ---------------------------------------------------------------------------------------
Holts Cigar Holdings (HOLT/Nasdaq NMS) Berwind Financial, LP
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
In Home Health, Inc. (IHHI/Nasdaq NMS) Houlihan Lokey Howard
& Zukin Financial
Advisory, Inc.
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
Legend Properties, Inc. (LPRO/OTC-BB) Josephthal & Co., Inc.
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
Mikasa, Inc. (MKS/NYSE) CIBC World Markets
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
N-Vision, Inc. (NVSN/OTC-BB) RP Financial, LC.
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
Neutral Posture Ergonomics, Inc. (NTRL/NASDAQ Southwest Securities
Small Cap)
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
Nostalgia Network, Inc. (NNET/OTC-BB) Daniels & Associates
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
Pameco Corp. (PAMC/OTC-BB) McDonald Investments
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
Petroglyph Energy, Inc. (PGEI/Nasdaq NMS) Prudential Securities
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
Randers Killam Group (RGI/AMEX) Adams Harkness & Hill
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
RISCORP, Inc. (OTC) None
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
Saratoga Beverage Group, Inc. (NA) Schroders & Co., Inc.
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
Sel Drum International, Inc. (SDUM/OTC-BB) Parisien Grou LaSalle
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
2
RP Financial, LC.
- -----------------
Financial Services Industry Consultants
Going Private Transactions 2000 to Date: Pending and Announced Non-Bank Deals
In Which Continuing Shareholders Had Majority Control on a Pre-Transaction Basis
State Going Pre-Transaction Common
----------------
Head- Hldg Private Ownership/Control of Required
Issuer (Ticker/Exchange) qrtrs Co. Structure Continuing Shareholders Vote
- ------------------------ ----------------- ---------- ------------------------- ----
- --------------------------------------------------------------------------------------------------------------------------------
Sklar Corporation (OTC) PA PA Reverse Split 55.40% Majority of common
and preferred
shareholders
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Thermo Instrument Systems (NYSE) MA DE Merger Sub 88.60% No vote of public
shareholders
required
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Thermo Optek Corp (ASE) MA DE Merger Sub 95.20% No vote of public
shareholders
required
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Termoquest Corp. (ASE) MA DE Merger Sub 90.60% No vote of public
shareholders
required
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Thermoretec Corp (THN/AMEX) MA DE Merger Sub 72.00% No vote of public
shareholders
required
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
VDI Multimedia (VDIM/Nasdaq NMS) CA CA Merger Sub 58.00% Majority of all
shareholders
- --------------------------------------------------------------------------------------------------------------------------------
Premium Analysis
------------------------------------------------------
Date Pre-Announce Going Private Premium
Issuer (Ticker/Exchange) Announced Price/Share Price/Share %
- ------------------------ --------- ----------- ------------ ---
- -----------------------------------------------------------------------------------------------------------------------
Sklar Corporation (OTC) 12/16/98 $ 0.22 $ 0.46 109.09%
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Thermo Instrument Systems (NYSE) 03/08/00 $19.94 $20.40 2.31%
27% one week prior to announcement
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Thermo Optek Corp (ASE) 02/01/00 $14.06 $15.00 6.67%
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Termoquest Corp. (ASE) 02/01/00 $12.50 $17.00 36.00%
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Thermoretec Corp (THN/AMEX) 10/19/98 $ 4.07 $ 7.00 72.20%
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
VDI Multimedia (VDIM/Nasdaq NMS) 07/24/99 $12.25 $15.00 22.45%
81.82% premium based on 7/24/99 announcement
to hire Morgan Stanley to explore strategic options
- ------------------------------------------------------------------------------------------------------------------------
Fairness
Issuer (Ticker/Exchange) Key Reasons for Going Private Opinion
- ------------------------ ------------------------------ -------
- ---------------------------------------------------------------------------------------------------------------------------
Sklar Corporation (OTC) Eliminates SEC filing obligations The Woodward Group
Eliminates public company costs
Provides liquidity/premium for shareholders
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Thermo Instruments Systems (NYSE) Eliminates SEC filing obligations Tucker Anthony
Eliminates public company costs Clearly Gull
Provides premium for shareholders
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Thermo Optek Corp (ASE) Eliminates SEC filing obligations JP Morgan Securities
Eliminates public company costs The Beacon Group
Provides premium for shareholders Capital Services
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Termoquest Corp. (ASE) Eliminates SEC filing obligations JP Morgan Securities
Eliminates public company costs The Beacon Group
Provides premium for shareholders Capital Services
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Thermoretec Corp (THN/AMEX) Eliminates SEC filing obligations Adams Harness & Hill
Eliminates public company costs
Provides premium for shareholders
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
VDI Multimedia (VDIM/Nasdaq NMS) Eliminates SEC filing obligations Morgan Stanley & Co.
Eliminates public company costs
Provides premium for shareholders
- ---------------------------------------------------------------------------------------------------------------------------
Median: All Deals w/ Control * 50% 48.56%
Median: all Deals w/ Control * 90% 41.20%
__________________
* means greater than
RP Financial, LC.
- -----------------
Financial Services Industry Consultants
Acquisition Pricing of Publicly-Traded Thrifts for Deals Announced
1998 to Present
Excludes Mergers of Equals, Strategic Merger Transactions and Acquisitions
of Mutual Holding Companies
Target Financials at Announcement
-----------------------------------
Total Equity/
Announce Complete Assets Assets ROAA ROAE
Date Date Buyer Short Name ST Target Name ST ($000) (%) (%) (%)
---- -------- ---------------- -- ----------- -- ------- ------- ----- ------
01/23/01 Pending Charter One Financial OH Alliance Bancorp IL 1,971,597 7.86 1.01 12.52
01/18/01 Pending Community First Banking Co. GA First Deposit Bancshares, Inc. GA 138,779 17.54 1.06 5.66
02/08/01 Pending Connecticut Bancshares Inc. CT First Federal S&L of East Hartford CT 1,086,657 7.12 0.75 11.93
01/26/01 Pending Jefferson Cnty Bkshrs, Inc. MO Perry County Financial Corporation MO 93,949 12.61 -3.23 -24.56
12/15/00 Pending CKF Bncrp Inc. KY First Lancaster Bncshrs, Inc. KY 57,126 22.33 0.83 3.69
12/11/00 Pending FBOP Corp. IL PBOC Hldgs, Inc. CA 3,276,687 6.55 1.12 20.71
12/09/00 Pending United Cmmnty Finl Corp. OH Industrial Bncrp, Inc. OH 415,676 13.80 1.39 9.99
12/07/00 Pending Platte Valley Fncl Service Co NE Tri-County Bncrp, Inc. WY 97,529 10.55 0.42 3.89
11/24/00 Pending Hudson River Bncrp NY Cohoes Bncrp Inc. NY 739,335 16.72 0.75 4.50
11/02/00 Pending PSB Bncrp Inc. PA Jade Fin Corp. PA 213,732 12.95 0.45 3.39
10/25/00 02/16/01 DFC Acquisition Corp. Two MO Hardin Bncrp, Inc. MO 143,325 8.90 0.88 9.91
10/20/00 Pending First Bncrp NC Century Bncrp, Inc. NC 100,542 17.77 0.93 5.09
10/06/00 01/12/01 DFC Acquisition Corp. Two MO Cameron Fin Corp MO 299,235 13.31 0.82 5.70
09/20/00 02/12/01 Union Planters Corp. TN Jefferson Svngs Bncrp, Inc. MO 1,634,214 8.00 0.72 9.10
09/20/00 02/28/01 Glacier Bncrp Inc. MT WesterFed Fin Corp MT 945,663 9.37 0.79 8.88
09/19/00 Pending Peoples Cmmnty Bncrp Inc. OH Market Fin Corp OH 55,926 26.08 0.56 2.12
09/06/00 03/02/01 BB&T Corp. NC FirstSpartan Fin Corp. SC 585,657 11.85 1.06 8.71
08/31/00 12/08/00 Fifth Third Bncrp OH Ottawa Fin Corp MI 1,084,624 7.37 0.84 11.31
08/25/00 Pending United Bncshrs Inc. OH Delphos Citizens Bncrp, Inc. OH 133,099 19.34 1.16 5.99
08/21/00 02/09/01 Washington Mutual Inc. WA Bank United Corp TX 18,197,572 4.55 0.74 16.39
08/16/00 Pending Berkshire Bncrp Inc. NY GSB Fin Corp NY 186,866 15.73 0.88 5.51
08/08/00 Pending FNB Corp. VA SWVA Bncshrs, Inc. VA 83,123 7.97 0.53 6.60
07/26/00 11/15/00 Allegiant Bncrp Inc. MO Equality Bncrp, Inc. MO 323,335 6.16 0.36 5.01
07/21/00 12/31/00 Seacoast Fin Services MA Home Port Bncrp, Inc. MA 328,455 8.57 1.64 19.08
07/18/00 11/20/00 Citco Cmmnty Bkshrs, Inc. TN Twin City Bncrp, Inc. TN 121,169 11.36 0.86 7.61
06/27/00 12/01/00 Queens County Bncrp Inc. NY Haven Bncrp, Inc. NY 2,965,912 3.46 0.01 0.39
06/16/00 10/13/00 Old Kent Fin Corp. MI Home Bncrp IN 403,491 9.31 0.68 7.55
06/08/00 11/10/00 Troy Fin Corp. NY Catskill Fin Corp NY 346,102 16.21 1.29 7.93
06/05/00 08/22/00 Greater Atlantic Financial VA Dominion SB, FSB VA 43,430 2.18 -2.94 -67.50
06/02/00 11/09/00 Northeast PA Fin Corp. PA Security-PA Fin Corp. PA 134,400 14.47 0.70 4.51
05/31/00 11/10/00 NewMil Bncrp Inc. CT Nutmeg FS&LA CT 121,889 8.69 1.08 12.18
05/16/00 11/13/00 Patapsco Bncrp Inc. MD Northfield Bncrp, Inc. MD 54,301 13.12 0.23 1.74
05/15/00 10/31/00 First United Bncshrs Inc. AR Texarkana First Fin Corp AR 206,487 13.28 1.55 11.78
05/04/00 08/31/00 Provident Bnkshrs Corp. MD Harbor Fed Bncrp, Inc. MD 253,112 10.07 0.82 7.90
04/25/00 10/02/00 Prudential Plc Highland Bncrp, Inc. CA 654,778 7.36 1.60 21.76
03/28/00 10/17/00 Harris Fin MHC PA York Fin Corp. PA 1,546,213 7.07 0.65 8.53
03/28/00 09/01/00 Union Bnkshrs Co. ME Mid-Coast Bncrp, Inc. ME 76,429 7.26 0.67 9.05
03/21/00 09/26/00 Lincoln Bncrp IN Citizens Bncrp IN 60,884 24.36 1.44 5.86
03/15/00 07/31/00 Richmond County Fin Corp NY So Jersey Fin Corp, Inc. NJ 334,607 17.12 0.28 1.63
02/22/00 11/02/00 Mutual SB WI First Northern Cptl Corp WI 804,269 9.60 0.99 9.65
02/18/00 07/14/00 Fidelity Bncrp Inc. PA Pennwood Bncrp, Inc. PA 53,871 12.21 0.33 2.67
02/17/00 07/19/00 Sound Fed Bncrp (MHC) NY Peekskill Fin Corp NY 207,166 12.82 0.77 5.83
02/14/00 07/31/00 SouthBanc Shares Inc. SC Heritage Bncrp, Inc. SC 313,717 23.77 NA NA
01/13/00 06/20/00 BancFirst Ohio Corp. OH Milton Fed Fin Corp OH 256,676 9.75 0.64 6.31
12/29/99 07/07/00 Niagara Bncrp Inc. (MHC) NY CNY Fin Corp. NY 296,294 25.41 1.12 4.12
12/28/99 04/11/00 National Commerce Bncrp. TN Piedmont Bncrp, Inc. NC 140,178 13.77 0.72 5.22
12/21/99 06/14/00 Bank-Kentucky Finl Corp. KY Fort Thomas Fin Corp KY 100,517 13.34 1.00 7.96
12/16/99 09/14/00 First Bncrp NC First Svngs Bncrp, Inc. NC 313,233 20.50 1.73 7.61
12/03/99 07/15/00 Midland States Bncrp, Inc. IL CSB Fin Group, Inc. IL 48,124 21.15 0.63 2.93
Deal Terms and Pricing at Announcement Control Premium
------------------------------------------------------------------------------------------------------------------------
NPAs/ Rsrvs/ Deal Price/ Prem/ Relative to Previous Trading Price
----------------------------------
Announce Assets NPLs Value Share P/B P/TB P/E P/A Deps 1 Day 1 Month 3 Month 1 Year
Date (%) (%) ($M) ($) Consid. (%) (%) (x) (%) (%) (%) (%) (%) (%)
---- ------ ------ ------- ------ ------- ----- ------ ----- ----- ----- ------ ------- ------- ------
01/23/01 0.31 121.32 241.3 24.645 Mixed 147.05 148.20 13.18 12.24 8.42 9.53 12.02 34.12 39.82
01/18/01 0.16 505.43 29.1 19.375 Mixed 119.60 119.60 18.45 20.97 7.25 23.01 29.16 31.35 68.47
02/08/01 0.07 307.75 112.3 37.500 Cash 136.96 136.96 13.54 10.33 6.36 8.30 12.78 16.95 31.00
01/26/01 0.17 19.23 17.7 23.500 Cash 147.15 147.15 NM 18.84 10.02 34.28 41.88 46.87 38.23
12/15/00 2.37 146.72 13.8 16.27 Cash 107.18 107.18 28.05 24.16 4.13 32.82 41.48 54.95 35.58
12/11/00 0.57 NA 193.0 10.00 Cash 81.19 89.37 4.56 5.57 -1.35 8.84 45.45 25.00 15.94
12/09/00 0.30 172.26 91.8 20.38 Cash 153.89 153.89 15.21 22.08 13.49 38.14 65.48 66.33 27.34
12/07/00 0.00 0.00 11.7 12.60 Cash 107.23 107.23 22.11 12.00 3.21 36.22 47.15 27.59 20.72
11/24/00 0.70 126.70 160.7 19.50 Cash 124.84 125.89 25.66 21.74 8.28 14.71 14.71 24.30 72.38
11/02/00 0.02 NA 25.4 13.55 Cash 91.68 91.68 26.06 11.88 NM 15.32 14.71 12.92 66.77
10/25/00 0.13 186.11 16.9 21.75 Cash 124.71 124.71 12.08 11.79 5.45 8.75 35.94 42.62 31.82
10/20/00 0.19 313.37 21.7 19.60 Mixed 121.21 121.21 21.08 21.58 6.89 37.54 29.59 35.17 50.77
10/06/00 0.05 NA 40.9 20.75 Cash 99.66 99.66 18.69 13.67 0.83 18.57 16.08 26.72 63.55
09/20/00 0.63 83.16 146.1 14.32 Stock 111.80 131.05 12.34 8.94 3.87 26.55 43.16 30.89 21.84
09/20/00 0.31 222.56 99.7 23.14 Mixed 106.70 133.01 12.51 10.54 5.65 46.95 48.12 65.31 36.14
09/19/00 0.00 0.00 16.8 13.00 Mixed 112.26 112.26 43.33 30.04 5.97 36.84 48.57 66.40 33.33
09/06/00 0.75 88.60 102.1 26.88 Stock 144.10 144.10 15.18 17.43 9.42 31.90 45.27 51.41 23.56
08/31/00 0.32 172.30 169.7 23.96 Stock 198.04 230.41 16.88 15.65 14.77 16.89 48.61 38.28 16.18
08/25/00 0.00 0.00 20.7 13.07 Mixed 80.40 80.40 12.21 15.55 -8.01 -1.40 7.75 -3.22 -27.42
08/21/00 0.70 102.98 1,526.5 42.66 Mixed 167.35 185.06 11.62 8.39 11.65 0.67 15.88 34.09 17.27
08/16/00 0.00 0.00 41.8 20.87 Mixed 140.89 140.89 19.68 22.37 13.10 29.91 27.43 36.27 48.38
08/08/00 0.00 0.00 8.7 20.25 Mixed 129.48 129.48 19.85 10.47 3.55 149.23 113.16 113.16 51.40
07/26/00 0.22 50.77 24.0 9.85 Stock 118.00 118.00 20.11 7.42 3.13 12.61 29.22 48.72 19.43
07/21/00 0.00 0.00 68.5 37.00 Cash 241.99 241.99 12.89 20.86 22.69 46.17 55.79 64.44 49.49
07/18/00 0.00 0.00 20.2 17.15 Cash 139.77 139.77 16.65 16.67 8.17 11.09 12.46 59.53 29.43
06/27/00 0.25 237.06 186.5 19.24 Stock 169.07 171.33 17.49 6.29 4.53 9.16 12.35 29.34 32.69
06/16/00 0.00 0.00 39.0 19.59 Stock 104.11 104.11 12.98 9.67 0.50 3.81 32.84 22.46 -28.75
06/08/00 0.11 NA 89.9 23.00 Cash 153.23 153.23 18.55 25.98 17.09 30.04 55.27 106.74 41.54
06/05/00 1.01 59.16 1.1 3.13 Cash 116.20 116.20 NM 2.53 0.43 -3.69 2.20 -19.23 NA
06/02/00 1.67 20.14 24.9 17.50 Cash 122.12 122.12 25.74 18.53 6.23 60.92 59.09 89.19 83.01
05/31/00 0.55 72.84 19.9 8.25 Mixed 187.82 187.82 15.08 16.33 10.08 -1.12 6.45 0.00 10.00
05/16/00 0.00 0.00 8.8 18.50 Mixed 123.43 123.43 30.97 16.19 5.44 23.85 39.62 51.02 72.09
05/15/00 0.28 238.78 37.5 23.35 Cash 131.12 131.12 10.96 18.16 7.63 12.54 45.95 31.56 -4.69
05/04/00 0.22 84.79 31.2 17.98 Stock 117.34 117.34 14.62 12.33 3.64 26.15 38.28 41.00 14.14
04/25/00 0.63 287.98 113.5 25.45 Cash 224.03 224.03 11.31 17.33 20.76 47.54 51.94 46.47 35.06
03/28/00 0.68 281.45 179.5 17.25 Stock 158.11 158.11 19.17 11.61 7.79 17.95 56.82 53.33 26.00
03/28/00 0.00 NA 12.1 15.88 Cash 215.69 215.69 26.91 15.83 25.13 164.58 128.83 124.78 126.02
03/21/00 0.62 90.21 17.9 18.52 Mixed 120.16 120.16 20.13 29.40 11.22 51.15 51.15 52.71 66.44
03/15/00 0.04 NA 70.2 20.00 Cash 115.94 115.94 NM 20.98 5.99 18.52 28.00 42.86 78.77
02/22/00 0.10 505.28 133.4 15.00 Mixed 168.35 168.35 18.52 16.59 11.73 66.67 64.38 31.87 30.43
02/18/00 0.58 114.68 7.5 13.10 Cash 114.66 114.66 34.59 14.00 2.90 69.03 87.14 87.14 19.09
02/17/00 0.32 115.57 41.6 22.00 Cash 150.79 150.79 28.95 20.08 11.12 83.33 83.33 69.23 57.14
02/14/00 0.00 NA 77.0 17.65 Mixed 104.75 104.75 31.52 24.58 51.66 33.21 23.86 6.97 -18.85
01/13/00 0.18 287.59 33.8 15.85 Mixed 135.05 135.05 19.81 13.17 5.85 37.80 39.31 32.06 9.29
12/29/99 0.37 303.73 87.9 18.75 Cash 130.03 130.03 27.57 29.67 11.20 11.52 23.97 30.43 87.50
12/28/99 0.75 107.33 32.1 12.52 Stock 162.39 162.39 30.54 22.90 14.12 69.76 51.76 64.20 38.15
12/21/99 2.46 28.49 28.4 18.40 Stock 202.19 202.19 30.67 28.25 22.72 26.89 35.04 26.89 36.29
12/16/99 0.10 188.01 77.9 21.20 Stock 115.64 115.64 16.06 24.87 6.99 14.96 5.32 3.40 -3.65
12/03/99 0.50 88.84 11.9 16.00 Cash 115.11 121.77 41.03 24.73 6.51 42.22 50.59 58.02 62.03
RP Financial, LC.
- -----------------
Financial Services Industry Consultants
Acquisition Pricing of Publicly-Traded Thrifts for Deals Announced 1998 to
Present Excludes Mergers of Equals, Strategic Merger Transactions and
Acquisitions of Mutual Holding Companies
Target Financials at Announcement
-------------------------------------------
Total Equity/ NPAs/ Rsrvs/
Announce Complete Assets Assets ROAA ROAE Assets NPLs
Date Date Buyer Short Name ST Target Name ST ($000) (%) (%) (%) (%) (%)
---- ---- ---------------- -- ----------- -- ------ --- --- --- --- ---
12/02/99 06/26/00 Webster Fin Corp. CT MECH Financial, Inc. CT 1,097,160 8.38 1.38 16.24 0.28 425.25
11/17/99 06/30/00 East Texas Fin Services TX Gilmer Fin Services, Inc. TX 38,985 10.50 0.60 6.26 0.73 251.55
10/27/99 06/16/00 Exchange National Bncshrs MO CNS Bncrp, Inc. MO 93,091 23.12 0.74 3.24 0.21 253.59
10/18/99 04/10/00 FNB Corp. NC Carolina Fincorp, Inc. NC 119,155 13.22 0.80 5.99 0.17 NA
10/01/99 03/29/00 People's Cmmnty Bank OH Harvest Home Fin Corp OH 100,253 9.80 0.52 5.09 0.08 172.15
09/21/99 03/01/00 Peoples Bncrp IN Three Rivers Fin Corp. MI 97,657 11.52 0.61 4.93 0.86 62.50
08/30/99 02/22/00 North Fork Bncrp. NY Reliance Bncrp, Inc. NY 2,451,773 7.00 0.81 11.15 0.26 144.72
08/30/99 03/24/00 Niagara Bncrp Inc. (MHC) NY Albion Banc Corp. NY 78,711 8.26 0.33 3.96 0.29 167.08
08/16/99 03/01/00 North Fork Bncrp. NY JSB Financial, Inc. NY 1,613,148 22.95 1.85 7.98 0.14 NA
08/16/99 02/07/00 Provident Fin Group Inc. OH Fidelity Fin-Ohio, Inc. OH 808,551 12.03 0.20 1.68 NA NA
08/09/99 12/01/99 NewSo Bncrp Inc. NC Green Street Fin Corp. NC 166,433 34.99 1.54 4.38 0.17 105.81
08/06/99 01/06/00 Camco Fin Corp. OH Westwood Hmstd Fin Corp OH 141,401 16.11 0.97 5.44 0.06 364.37
08/05/99 02/15/00 Century So Banks Inc. GA Haywood Bncshrs, Inc. NC 149,070 14.61 1.05 7.28 0.68 76.37
08/03/99 01/19/00 Uwharrie Cptl Corp NC Anson Bncrp, Inc. NC 24,943 38.34 0.68 1.80 0.00 NA
08/03/99 12/03/99 Provident Fin Group Inc. OH OHSL Fin Corp. OH 276,757 9.85 0.86 8.57 0.02 NA
07/27/99 12/20/99 Camden National Corp. ME KSB Bncrp, Inc. ME 179,333 7.90 1.08 13.49 0.00 NA
07/21/99 02/10/00 ESB Fin Corp. PA SHS Bncrp, Inc. PA 90,439 12.94 0.64 4.95 1.35 37.87
07/13/99 07/03/00 IndyMac Mortgage Hldgs Inc. CA SGV Bncrp, Inc. CA 464,500 6.89 0.56 8.02 0.74 93.07
07/08/99 11/19/99 First M & F Corp. MS Cmmnty Fed Bncrp, Inc. MS 305,408 19.16 1.04 5.13 0.35 82.05
07/01/99 11/12/99 Union Fin Bcshs Inc. SC SC Cmmnty Bcshrs, Inc. SC 45,429 20.00 0.95 4.60 2.79 25.50
06/30/99 10/29/99 First Busey Corp. IL Eagle BancGroup, Inc. IL 182,947 10.68 0.44 4.05 0.58 283.57
05/26/99 10/15/99 Local Fin Corp. OK Guthrie Svngs, Inc. OK 46,374 15.88 0.83 5.32 2.62 28.75
05/19/99 12/15/99 Central BanCo MO Fulton Bncrp, Inc. MO 117,770 21.58 0.94 4.23 0.92 127.39
05/17/99 10/01/99 Charter One Financial OH St. Paul Bncrp, Inc. IL 5,980,486 8.30 0.99 11.80 NA NA
05/17/99 09/03/99 Hudson River Bncrp NY SFS Bncrp, Inc. NY 178,167 13.25 1.20 9.74 0.56 131.45
05/03/99 10/12/99 Citizens Bncshrs Co. MO MBLA Fin Corp. MO 208,076 13.63 0.93 6.82 0.72 48.39
04/28/99 11/19/99 BB&T Corp. NC First Liberty Fin Corp. GA 1,588,043 7.85 1.20 15.11 0.74 179.49
04/14/99 10/04/99 CCB Fin Corp. NC Stone Street Bncrp, Inc. NC 127,273 22.38 1.37 5.40 0.00 NA
04/13/99 01/07/00 Independence Comm. Bank Corp. NY Statewide Fin Corp. NJ 717,517 8.43 0.54 5.65 0.38 139.35
03/24/99 09/15/99 Independent Bank Corp. MI Mutual SB, FSB MI 564,434 6.40 0.43 7.76 0.09 NA
03/01/99 08/06/99 Fifth Third Bncrp OH Emerald Fin Corp OH 668,459 8.20 1.24 14.83 0.26 102.24
02/24/99 07/09/99 Old Kent Fin Corp. MI CFSB Bncrp, Inc. MI 880,347 7.87 1.39 17.64 0.18 NM
02/17/99 03/22/00 Otto Bremer Foundation MN Northwest Equity Corp WI 99,187 12.11 1.07 8.88 0.72 64.99
02/04/99 08/31/99 NBC Cptl Corp. MS FFBS Bncrp, Inc. MS 155,731 15.19 1.04 6.80 0.03 NA
02/02/99 09/30/99 Mahaska Investment Co. IA Midwest Bncshrs, Inc. IA 160,583 7.36 0.89 12.52 0.54 236.18
01/27/99 07/09/99 BB&T Corp. NC First Citizens Corp GA 385,582 10.13 1.38 13.76 1.18 85.81
01/25/99 07/01/99 BSB Bncrp Inc. NY Skaneateles Bncrp Inc. NY 271,527 6.91 0.60 8.70 1.58 80.43
01/05/99 06/07/99 Anchor Bncrp Wisconsin WI FCB Fin Corp. WI 534,928 14.18 1.31 9.03 0.24 297.55
12/17/98 07/19/99 Sky Fin Group Inc. OH Wood Bncrp, Inc. OH 166,839 13.87 1.51 11.01 0.02 NA
12/16/98 05/21/99 Dime Bncrp Inc. NY Lakeview Fin Corp. NJ 593,856 9.53 1.74 17.17 0.56 160.27
12/01/98 05/17/99 Republic Bncrp Inc. MI D & N Fin Corp MI 1,998,299 5.60 0.85 15.28 0.50 119.13
11/18/98 08/02/99 Crown Group Inc. FL Delaware First Fin Corp DE 101,057 15.93 0.01 0.07 0.38 162.02
11/16/98 06/30/99 Temple-Inland, Inc. TX HF Bncrp, Inc. CA 1,059,600 7.92 0.07 0.86 NA NA
10/28/98 03/29/99 Centura Banks Inc. NC First Coastal Bnkshrs, Inc. VA 603,753 7.50 0.65 9.21 0.47 NA
10/21/98 04/01/99 Southwest Bncrp.-Texas TX Fort Bend Hldg Corp. TX 318,348 7.15 0.71 10.28 0.27 199.63
10/15/98 03/31/99 Kearny FSB NJ 1st Bergen Bncrp NJ 300,755 11.60 0.70 5.69 0.96 111.28
09/29/98 03/31/99 Cptl Bank Corp. NC Home SB-Siler City, Inc. SSB NC 58,813 16.70 0.49 2.91 0.08 NM
09/25/98 05/14/99 Fifth Third Bncrp OH Enterprise Fed Bncrp, Inc. OH 406,893 9.00 0.76 7.43 0.03 NM
09/22/98 03/31/99 United National Bncrp NJ Raritan Bncrp, Inc. NJ 434,606 7.33 0.97 12.83 0.43 186.77
Deal Terms and Pricing at Announcement
------------------------------------------------------------------------
Deal Price/ Prem/
Announce Complete Value Share P/B P/TB P/E P/A Deps
Date Date Buyer Short Name ($M) ($) Consid. (%) (%) (x) (%) (%)
---- ---- ---------------- ---- --- ------- --- --- --- --- ---
12/02/99 06/26/00 Webster Fin Corp. 206.2 39.52 Stock 214.90 216.43 16.61 18.79 19.37
11/17/99 06/30/00 East Texas Fin Services 5.0 26.10 Cash 122.59 122.59 22.12 12.87 3.65
10/27/99 06/16/00 Exchange National Bncshrs 25.6 17.80 Mixed 117.26 117.26 34.23 27.50 6.34
10/18/99 04/10/00 FNB Corp. 29.1 15.01 Stock 178.48 178.48 27.80 24.41 14.89
10/01/99 03/29/00 People's Cmmnty Bank 16.5 18.00 Mixed 160.43 160.43 31.03 16.46 10.64
09/21/99 03/01/00 Peoples Bncrp 13.4 18.36 Stock 122.32 122.73 20.63 13.72 3.67
08/30/99 02/22/00 North Fork Bncrp. 354.4 38.13 Stock 199.06 291.37 16.87 14.45 17.25
08/30/99 03/24/00 Niagara Bncrp Inc. (MHC) 12.4 15.75 Cash 182.50 182.50 40.38 15.75 10.47
08/16/99 03/01/00 North Fork Bncrp. 592.6 61.31 Stock 153.86 153.86 13.84 36.80 23.56
08/16/99 02/07/00 Provident Fin Group Inc. 194.5 21.00 Stock 197.00 211.69 42.86 24.06 19.22
08/09/99 12/01/99 NewSo Bncrp Inc. 60.9 15.25 Cash 101.60 101.60 21.48 36.59 2.86
08/06/99 01/06/00 Camco Fin Corp. 27.3 12.69 Mixed 120.81 120.81 20.80 19.31 5.85
08/05/99 02/15/00 Century So Banks Inc. 26.6 21.30 Mixed 122.27 126.11 NM 17.84 5.33
08/03/99 01/19/00 Uwharrie Cptl Corp 10.1 17.30 Cash 105.81 105.81 59.66 40.49 3.84
08/03/99 12/03/99 Provident Fin Group Inc. 57.0 22.50 Stock 209.85 209.85 25.57 20.60 15.65
07/27/99 12/20/99 Camden National Corp. 31.0 22.65 Stock 203.50 224.04 15.51 17.29 14.96
07/21/99 02/10/00 ESB Fin Corp. 13.9 17.36 Mixed 114.65 114.65 31.00 15.37 3.36
07/13/99 07/03/00 IndyMac Mortgage Hldgs Inc. 58.6 25.00 Cash 170.07 171.70 25.25 12.62 11.26
07/08/99 11/19/99 First M & F Corp. 79.3 18.27 Mixed 133.24 133.24 23.42 25.97 18.07
07/01/99 11/12/99 Union Fin Bcshs Inc. 9.6 17.50 Mixed 103.80 103.80 23.03 21.13 1.87
06/30/99 10/29/99 First Busey Corp. 27.1 25.74 Cash 140.66 140.66 30.28 14.81 6.35
05/26/99 10/15/99 Local Fin Corp. 9.3 22.25 Cash 126.82 126.82 20.80 20.14 5.81
05/19/99 12/15/99 Central BanCo 31.6 19.15 Cash 124.59 124.59 29.02 26.83 9.86
05/17/99 10/01/99 Charter One Financial 1,209.8 28.62 Stock 229.66 230.77 38.15 20.23 21.45
05/17/99 09/03/99 Hudson River Bncrp 31.8 25.10 Cash 128.45 128.45 13.72 17.85 6.00
05/03/99 10/12/99 Citizens Bncshrs Co. 31.1 24.15 Cash 106.20 106.20 16.54 14.95 2.62
04/28/99 11/19/99 BB&T Corp. 488.9 33.25 Stock 366.90 397.87 27.76 29.41 38.29
04/14/99 10/04/99 CCB Fin Corp. 38.7 21.37 Mixed 126.98 126.98 24.01 30.41 15.86
04/13/99 01/07/00 Independence Comm. Bank Corp. 107.0 25.32 Mixed 173.75 173.99 29.44 14.91 12.15
03/24/99 09/15/99 Independent Bank Corp. 61.6 14.60 Stock 173.40 173.40 23.93 10.91 6.56
03/01/99 08/06/99 Fifth Third Bncrp 222.6 19.82 Stock 371.84 375.36 27.53 33.30 35.46
02/24/99 07/09/99 Old Kent Fin Corp. 243.2 28.27 Stock 332.99 332.99 20.49 27.63 31.68
02/17/99 03/22/00 Otto Bremer Foundation 21.2 24.00 Cash 164.95 164.95 18.32 21.37 15.10
02/04/99 08/31/99 NBC Cptl Corp. 47.4 29.27 Stock 188.10 188.10 29.27 30.44 23.77
02/02/99 09/30/99 Mahaska Investment Co. 18.8 16.88 Stock 151.07 151.07 12.88 11.71 7.06
01/27/99 07/09/99 BB&T Corp. 126.7 41.47 Stock 297.92 360.62 23.43 32.86 32.32
01/25/99 07/01/99 BSB Bncrp Inc. 42.5 27.89 Stock 215.19 219.94 26.56 15.65 11.45
01/05/99 06/07/99 Anchor Bncrp Wisconsin 175.1 44.15 Stock 223.20 223.20 24.53 32.73 35.13
12/17/98 07/19/99 Sky Fin Group Inc. 59.2 20.57 Stock 239.22 239.22 23.65 35.48 32.89
12/16/98 05/21/99 Dime Bncrp Inc. 118.7 22.68 Mixed 195.49 291.48 9.95 19.99 18.91
12/01/98 05/17/99 Republic Bncrp Inc. 293.6 30.15 Stock 246.69 265.13 18.16 14.69 17.92
11/18/98 08/02/99 Crown Group Inc. 17.9 15.50 Cash 111.35 111.35 NM 17.71 3.12
11/16/98 06/30/99 Temple-Inland, Inc. 122.7 18.50 Mixed 140.90 163.28 NM 11.58 6.68
10/28/98 03/29/99 Centura Banks Inc. 124.9 23.80 Stock 262.11 262.11 28.33 20.69 24.65
10/21/98 04/01/99 Southwest Bncrp.-Texas 63.2 21.75 Stock 173.72 183.70 23.14 19.85 18.47
10/15/98 03/31/99 Kearny FSB 64.7 24.00 Cash 177.91 177.91 28.57 21.51 14.22
09/29/98 03/31/99 Cptl Bank Corp. 14.7 15.68 Stock 147.37 147.37 58.07 24.99 10.89
09/25/98 05/14/99 Fifth Third Bncrp 104.0 43.51 Stock 283.92 402.21 34.31 19.05 33.60
09/22/98 03/31/99 United National Bncrp 97.7 38.24 Stock 284.98 288.42 24.36 22.48 20.00
Control Premium
----------------------------------
Relative to Previous Trading Price
----------------------------------
Announce Complete 1 Day Month Month 1 Year
Date Date Buyer Short Name (%) (%) (%) (%)
---- ---- ---------------- --- --- --- ---
12/02/99 06/26/00 Webster Fin Corp. 14.55 23.02 8.27 41.46
11/17/99 06/30/00 East Texas Fin Services 93.33 93.33 93.33 53.53
10/27/99 06/16/00 Exchange National Bncshrs 58.22 54.78 65.58 39.61
10/18/99 04/10/00 FNB Corp. 31.96 58.00 59.05 87.63
10/01/99 03/29/00 People's Cmmnty Bank 25.22 28.57 50.79 39.81
09/21/99 03/01/00 Peoples Bncrp 66.91 56.26 44.00 22.40
08/30/99 02/22/00 North Fork Bncrp. 12.55 37.70 35.56 52.50
08/30/99 03/24/00 Niagara Bncrp Inc. (MHC) 27.27 46.51 70.27 61.54
08/16/99 03/01/00 North Fork Bncrp. 4.36 10.48 18.48 19.64
08/16/99 02/07/00 Provident Fin Group Inc. 70.56 73.20 75.92 36.59
08/09/99 12/01/99 NewSo Bncrp Inc. 16.19 26.42 30.48 6.09
08/06/99 01/06/00 Camco Fin Corp. 23.76 22.27 22.27 1.48
08/05/99 02/15/00 Century So Banks Inc. 50.80 46.90 53.51 3.90
08/03/99 01/19/00 Uwharrie Cptl Corp 42.68 64.76 64.76 42.74
08/03/99 12/03/99 Provident Fin Group Inc. 47.54 51.26 50.00 42.86
07/27/99 12/20/99 Camden National Corp. 61.79 87.77 70.94 24.11
07/21/99 02/10/00 ESB Fin Corp. 57.80 78.03 57.80 8.49
07/13/99 07/03/00 IndyMac Mortgage Hldgs Inc. 17.65 31.58 129.89 37.93
07/08/99 11/19/99 First M & F Corp. 32.85 40.52 46.14 7.45
07/01/99 11/12/99 Union Fin Bcshs Inc. 22.81 25.00 18.64 -18.13
06/30/99 10/29/99 First Busey Corp. 17.00 24.05 13.77 34.59
05/26/99 10/15/99 Local Fin Corp. 48.33 30.88 17.11 NA
05/19/99 12/15/99 Central BanCo 12.65 41.85 25.57 -14.89
05/17/99 10/01/99 Charter One Financial 16.06 21.77 35.06 15.91
05/17/99 09/03/99 Hudson River Bncrp 16.07 36.60 30.81 11.56
05/03/99 10/12/99 Citizens Bncshrs Co. 38.99 30.10 15.69 -8.44
04/28/99 11/19/99 BB&T Corp. 43.01 56.01 66.25 38.54
04/14/99 10/04/99 CCB Fin Corp. 65.98 48.66 45.50 4.24
04/13/99 01/07/00 Independence Comm. Bank Corp. 19.48 46.75 36.84 10.36
03/24/99 09/15/99 Independent Bank Corp. 52.68 49.74 64.51 16.80
03/01/99 08/06/99 Fifth Third Bncrp 36.68 52.45 84.36 79.15
02/24/99 07/09/99 Old Kent Fin Corp. 48.09 35.21 26.29 13.08
02/17/99 03/22/00 Otto Bremer Foundation 28.00 10.34 37.14 13.27
02/04/99 08/31/99 NBC Cptl Corp. 8.40 15.91 16.79 27.98
02/02/99 09/30/99 Mahaska Investment Co. 43.62 36.36 35.00 -1.46
01/27/99 07/09/99 BB&T Corp. 37.66 62.63 56.49 29.60
01/25/99 07/01/99 BSB Bncrp Inc. 46.78 95.71 108.51 44.87
01/05/99 06/07/99 Anchor Bncrp Wisconsin 57.68 44.75 83.95 43.57
12/17/98 07/19/99 Sky Fin Group Inc. 29.59 52.39 46.95 26.99
12/16/98 05/21/99 Dime Bncrp Inc. 3.08 14.82 -1.40 -10.19
12/01/98 05/17/99 Republic Bncrp Inc. 30.71 56.60 89.14 32.64
11/18/98 08/02/99 Crown Group Inc. 51.22 55.00 47.62 NA
11/16/98 06/30/99 Temple-Inland, Inc. 8.82 32.14 15.63 18.40
10/28/98 03/29/99 Centura Banks Inc. 27.79 70.00 44.24 57.36
10/21/98 04/01/99 Southwest Bncrp.-Texas 14.47 3.57 0.58 10.13
10/15/98 03/31/99 Kearny FSB 33.33 39.13 28.00 37.14
09/29/98 03/31/99 Cptl Bank Corp. 33.45 30.67 25.44 8.14
09/25/98 05/14/99 Fifth Third Bncrp 50.03 51.33 58.93 100.04
09/22/98 03/31/99 United National Bncrp 15.89 36.59 35.38 71.88
2
RP Financial, LC.
- -----------------
Financial Services Industry Consultants
Acquisition Pricing of Publicly-Traded Thrifts for Deals Announced 1998 to
Present Excludes Mergers of Equals, Strategic Merger
Transactions and Acquisitions of Mutual Holding Companies
Target Financials
----------------------------------
Total Equity/
Announce Complete Assets Assets ROAA
Date Date Buyer Short Name ST Target Name ST ($000) (%) (%)
- -------- -------- ----------------------------- -- ----------- -- ------ --- ---
09/09/98 04/30/99 FBOP Corp. IL Calumet Bncrp, Inc. IL 491,961 17.74 2.21
09/08/98 06/30/99 Sovereign Bncrp Inc. PA Peoples Bncrp, Inc. NJ 873,466 39.08 1.35
08/26/98 02/05/99 Centura Banks Inc. NC Scotland Bncrp, Inc. NC 61,082 24.93 0.96
08/17/98 12/31/98 MAF Bncrp Inc. IL Westco Bncrp, Inc. IL 320,295 15.66 1.40
08/17/98 04/13/99 First Fed Bnkshrs Inc. IA Mid-Iowa Fin Corp. IA 135,040 9.93 1.00
08/13/98 12/31/98 First Western Bank NC Mitchell Bncrp, Inc. NC 37,306 39.22 1.23
07/20/98 03/22/99 Richmond County Fin Corp NY Bayonne Bncshrs, Inc. NJ 646,058 15.27 0.72
07/20/98 01/21/99 Dime Cmmnty Bncshrs Inc. NY Financial Bncrp, Inc. NY 310,368 9.04 0.95
07/09/98 12/18/98 First Source Bncrp Inc. NJ Pulse Bncrp, Inc. NJ 540,008 8.34 1.02
07/02/98 01/31/99 Union Planters Corp. TN First Mutual Bncrp, Inc. IL 390,231 14.15 0.39
06/30/98 01/22/99 St. Francis Cptl Corp. WI Reliance Bncshrs, Inc. WI 44,174 49.96 1.28
06/15/98 11/30/98 Charter One Financial OH ALBANK Fin Corp NY 4,089,428 8.97 0.96
06/02/98 12/15/98 State Fin Services Corp. WI Home Bncrp-Elgin, Inc. IL 368,976 25.93 0.56
05/29/98 10/16/98 Valley National Bncrp NJ Wayne Bncrp, Inc. NJ 272,007 12.70 0.59
05/28/98 10/29/98 Republic Security Financial FL First Palm Beach Bncrp, Inc. FL 1,791,370 6.53 0.49
05/26/98 02/17/99 Roslyn SB NY TR Fin Corp. NY 4,005,695 6.15 0.99
05/18/98 09/30/98 First Charter Corp. NC HFNC Fin Corp. NC 979,554 17.24 1.48
05/07/98 09/03/98 Blackhawk Bncrp Inc. WI First Fin Bncrp, Inc. IL 82,117 9.40 0.34
05/07/98 08/03/98 Central Bncshrs, Inc. KY Pioneer Fin Corp KY 71,534 13.01 2.91
04/23/98 11/16/98 Ambanc Hldg Co. NY AFSALA Bncrp, Inc. NY 160,408 12.52 0.78
04/23/98 11/13/98 Sterling Fin Corp. WA Big Sky Bncrp, Inc. MT 62,103 12.49 0.90
04/03/98 10/01/98 Astoria Fin Corp. NY Long Island Bncrp, Inc. NY 6,072,524 9.18 0.87
03/31/98 08/14/98 Hudson United Bncrp NJ IBS Fin Corp. NJ 728,181 17.74 0.84
03/31/98 08/21/98 Hudson United Bncrp NJ Dime Fin Corp CT 958,503 8.27 1.94
03/17/98 10/01/98 Washington Mutual Inc. WA Ahmanson & Co (H.F.) CA 46,678,752 5.13 0.87
03/09/98 08/14/98 Commercial Fed Corp. NE First Colorado Bncrp, Inc. CO 1,555,274 13.46 1.31
03/06/98 08/31/98 U.S.B. Hldg Co. NY Tappan Zee Financial, Inc. NY 126,470 17.02 0.82
02/27/98 06/26/98 Blue River Bncshrs Inc. IN Shelby County Bncrp IN 97,221 7.70 0.74
02/25/98 09/30/98 BB&T Corp. NC Maryland Fed Bncrp, Inc. MD 1,184,294 8.66 0.83
02/18/98 10/01/98 United Bnkshrs Inc. WV Fed One Bncrp, Inc. WV 366,776 11.06 0.92
02/06/98 06/30/98 Signal Corp. OH First Shenango Bncrp, Inc. PA 374,972 12.76 1.15
01/27/98 11/10/98 Jackson National Life Ins Co. MI First FS&LA-San Bernardino CA 103,538 4.46 0.11
01/14/98 06/26/98 Fifth Third Bncrp OH CitFed Bncrp, Inc. OH 3,294,554 6.27 0.89
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Average: All Deals 1,118,906 13.29 0.85
Median: All Deals 296,294 11.85 0.86
------------------------------------------------------------------
------------------------------------------------------------------
Average: 2000-01 Deals 935,264 11.97 0.65
Median: 2000-01 Deals 254,894 10.96 0.79
------------------------------------------------------------------
------------------------------------------------------------------
Average: 1999 Deals 514,139 14.23 0.93
Median: 1999 Deals 178,167 12.94 0.94
------------------------------------------------------------------
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Average: 1998 Deals 1,893,570 13.68 0.96
Median: 1998 Deals 300,755 12.11 0.90
------------------------------------------------------------------
at Announcement Deal Terms and Pricing
-----------------------------------------------------------------------------
NPAs/ Rsrvs/ Deal Price/
Announce Complete ROAE Assets NPLs Value Share P/B
Date Date Buyer Short Name (%) (%) (%) ($M) ($) Consid. (%)
- -------- -------- ------------------------------- --- --- --- ---- --- ------- ---
09/09/98 04/30/99 FBOP Corp. 12.86 1.21 159.68 110.5 32.00 Cash 115.36
09/08/98 06/30/99 Sovereign Bncrp Inc. 6.16 0.65 75.14 379.4 10.50 Stock 111.70
08/26/98 02/05/99 Centura Banks Inc. 3.95 0.00 NA 22.7 11.75 Cash 147.61
08/17/98 12/31/98 MAF Bncrp Inc. 9.03 0.44 63.73 82.6 30.86 Stock 152.94
08/17/98 04/13/99 First Fed Bnkshrs Inc. 10.73 0.14 310.10 28.2 15.00 Cash 194.05
08/13/98 12/31/98 First Western Bank 2.99 1.54 86.58 19.0 20.00 Mixed 127.23
07/20/98 03/22/99 Richmond County Fin Corp 5.82 0.55 91.77 175.1 19.03 Stock 175.40
07/20/98 01/21/99 Dime Cmmnty Bncshrs Inc. 10.47 2.19 59.59 73.6 40.50 Mixed 246.50
07/09/98 12/18/98 First Source Bncrp Inc. 12.41 0.40 NA 106.4 32.00 Stock 221.15
07/02/98 01/31/99 Union Planters Corp. 2.80 0.24 241.43 67.9 18.50 Stock 127.41
06/30/98 01/22/99 St. Francis Cptl Corp. 2.58 0.00 NA 24.6 10.00 Mixed 107.41
06/15/98 11/30/98 Charter One Financial 10.81 0.72 118.45 1,075.8 73.58 Stock 257.80
06/02/98 12/15/98 State Fin Services Corp. 2.14 0.32 121.49 137.0 19.50 Stock 139.78
05/29/98 10/16/98 Valley National Bncrp 4.57 0.90 101.22 74.0 34.38 Stock 200.44
05/28/98 10/29/98 Republic Security Financial 7.61 0.55 87.12 299.1 55.05 Stock 237.88
05/26/98 02/17/99 Roslyn SB 16.05 0.51 80.17 1,114.1 56.63 Stock 403.07
05/18/98 09/30/98 First Charter Corp. 8.12 0.73 153.22 240.2 13.97 Stock 142.07
05/07/98 09/03/98 Blackhawk Bncrp Inc. 3.64 1.09 60.83 12.7 30.00 Cash 161.46
05/07/98 08/03/98 Central Bncshrs, Inc. 23.59 0.01 NA 20.5 98.50 Cash 220.46
04/23/98 11/16/98 Ambanc Hldg Co. 6.19 0.30 250.44 30.0 21.00 Stock 144.62
04/23/98 11/13/98 Sterling Fin Corp. 7.59 0.00 NA 12.4 35.47 Stock 148.08
04/03/98 10/01/98 Astoria Fin Corp. 9.59 0.89 73.47 1,765.7 69.36 Stock 299.09
03/31/98 08/14/98 Hudson United Bncrp 4.78 0.11 130.18 238.6 20.73 Stock 187.06
03/31/98 08/21/98 Hudson United Bncrp 24.20 0.29 539.86 210.8 38.25 Stock 249.19
03/17/98 10/01/98 Washington Mutual Inc. 17.14 1.73 58.49 9,907.0 80.36 Stock 390.67
03/09/98 08/14/98 Commercial Fed Corp. 9.92 0.15 223.19 529.4 30.00 Stock 240.96
03/06/98 08/31/98 U.S.B. Hldg Co. 4.78 1.19 45.98 33.8 22.00 Stock 151.10
02/27/98 06/26/98 Blue River Bncshrs Inc. 9.50 0.59 79.03 10.8 58.00 Cash 136.28
02/25/98 09/30/98 BB&T Corp. 9.83 0.42 135.21 254.6 37.05 Stock 233.87
02/18/98 10/01/98 United Bnkshrs Inc. 8.18 0.17 241.60 92.2 36.47 Stock 213.40
02/06/98 06/30/98 Signal Corp. 10.20 1.04 116.66 102.2 47.44 Stock 205.08
01/27/98 11/10/98 Jackson National Life Ins Co. 2.46 1.99 245.63 6.1 18.00 Cash 128.02
01/14/98 06/26/98 Fifth Third Bncrp 13.87 0.40 210.75 725.4 53.94 Stock 338.79
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7.31 0.51 144.65 216.85 25.46 169.52
7.57 0.32 116.66 58.60 21.00 148.08
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-----------------------------------------------------------------------------
5.50 0.35 135.53 98.78 19.38 136.03
6.60 0.21 102.98 38.25 19.31 124.78
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
7.58 0.60 149.50 116.20 23.70 172.14
6.80 0.37 117.36 32.10 21.30 160.43
-----------------------------------------------------------------------------
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8.80 0.59 150.00 433.27 33.28 200.45
7.61 0.43 120.31 63.20 22.65 173.40
-----------------------------------------------------------------------------
at Announcement Control Premium
---------------------------------------------------------------------------
Relative to Previous Trading Price
Prem/ -----------------------------------
Announce Complete P/TB P/E P/A Deps 1 Day 1 Month 3 Month 1 Year
Date Date Buyer Short Name (%) (x) (%) (%) (%) (%) (%) (%)
- -------- -------- ----------------------------- --- --- --- --- --- --- --- ---
09/09/98 04/30/99 FBOP Corp. 115.36 11.47 22.46 7.14 18.52 5.79 -9.22 10.98
09/08/98 06/30/99 Sovereign Bncrp Inc. 115.13 44.98 43.44 11.43 26.31 18.31 5.00 33.85
08/26/98 02/05/99 Centura Banks Inc. 147.61 23.50 37.16 18.18 29.65 28.77 34.29 -37.13
08/17/98 12/31/98 MAF Bncrp Inc. 152.94 17.54 25.79 14.39 14.31 2.88 3.31 17.58
08/17/98 04/13/99 First Fed Bnkshrs Inc. 194.30 19.48 20.88 24.05 22.45 33.33 23.71 55.84
08/13/98 12/31/98 First Western Bank 127.23 40.00 50.93 28.50 24.03 21.21 18.52 19.40
07/20/98 03/22/99 Richmond County Fin Corp 175.40 39.98 27.10 20.39 11.13 19.88 10.32 -43.19
07/20/98 01/21/99 Dime Cmmnty Bncshrs Inc. 247.56 24.40 23.71 22.22 26.56 47.27 50.00 117.45
07/09/98 12/18/98 First Source Bncrp Inc. 221.15 18.18 19.70 15.05 12.28 15.32 15.84 58.02
07/02/98 01/31/99 Union Planters Corp. 164.58 46.25 17.40 8.33 5.71 4.96 -5.73 23.33
06/30/98 01/22/99 St. Francis Cptl Corp. 107.41 47.62 55.69 15.65 21.21 23.08 11.88 19.40
06/15/98 11/30/98 Charter One Financial 329.64 23.06 26.31 24.87 42.87 39.15 47.52 88.66
06/02/98 12/15/98 State Fin Services Corp. 139.78 51.32 37.13 16.84 13.87 11.43 6.12 21.88
05/29/98 10/16/98 Valley National Bncrp 200.44 35.08 27.21 21.47 11.79 10.89 40.31 103.70
05/28/98 10/29/98 Republic Security Financial 243.14 30.75 16.70 16.17 50.81 43.44 45.82 85.03
05/26/98 02/17/99 Roslyn SB 403.07 27.23 27.81 43.83 46.62 57.86 69.68 168.08
05/18/98 09/30/98 First Charter Corp. 142.07 18.62 24.52 21.98 2.50 7.42 3.44 -20.20
05/07/98 09/03/98 Blackhawk Bncrp Inc. 161.46 NM 15.47 9.19 17.65 21.21 37.93 87.50
05/07/98 08/03/98 Central Bncshrs, Inc. 220.46 15.18 28.66 21.23 129.07 NA NA NA
04/23/98 11/16/98 Ambanc Hldg Co. 144.62 22.58 18.70 8.48 1.20 3.70 18.30 63.89
04/23/98 11/13/98 Sterling Fin Corp. 148.08 20.27 19.97 10.77 28.96 28.96 44.76 75.14
04/03/98 10/01/98 Astoria Fin Corp. 301.83 32.11 29.08 35.57 3.33 13.47 38.37 107.04
03/31/98 08/14/98 Hudson United Bncrp 187.06 38.38 32.77 21.63 3.63 16.77 17.18 40.20
03/31/98 08/21/98 Hudson United Bncrp 255.85 12.10 21.99 17.43 6.25 22.40 25.41 112.50
03/17/98 10/01/98 Washington Mutual Inc. 457.63 22.38 21.22 28.95 22.69 35.92 20.95 102.16
03/09/98 08/14/98 Commercial Fed Corp. 245.90 24.59 34.04 31.60 6.19 17.65 15.94 64.38
03/06/98 08/31/98 U.S.B. Hldg Co. 151.10 30.56 26.73 14.19 15.79 15.79 11.39 44.26
02/27/98 06/26/98 Blue River Bncshrs Inc. 136.28 18.95 11.11 5.33 93.33 NA NA NA
02/25/98 09/30/98 BB&T Corp. 236.26 25.55 21.50 21.33 16.68 22.97 39.79 97.57
02/18/98 10/01/98 United Bnkshrs Inc. 222.79 27.42 25.34 23.69 8.87 9.27 45.88 108.40
02/06/98 06/30/98 Signal Corp. 205.08 21.18 27.26 22.83 27.34 38.50 39.52 108.51
01/27/98 11/10/98 Jackson National Life Ins Co. 131.29 NM 5.89 1.81 50.00 82.74 80.00 100.00
01/14/98 06/26/98 Fifth Third Bncrp 372.74 28.24 22.02 38.87 42.87 39.64 49.13 148.93
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176.17 24.32 21.09 13.94 31.90 37.78 40.65 40.14
151.07 23.06 20.23 11.35 26.56 36.36 37.14 35.32
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138.49 19.25 15.93 8.76 32.84 41.11 44.31 35.60
130.27 18.52 16.01 6.89 26.35 40.55 39.64 32.69
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177.84 26.06 22.53 13.73 36.77 43.32 47.63 28.35
160.43 24.89 21.13 11.26 36.68 41.85 45.50 28.79
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212.21 27.69 24.86 19.20 26.20 28.62 29.66 56.97
173.40 24.56 22.02 15.65 26.89 35.04 36.84 37.14
3
RP Financial, LC.
- -----------------
Financial Services Industry Consultants
Acquisition Pricing of Publicly-Traded Banks for Deals Announced 1998 to
Present Excludes Mergers of Equals and Strategic Merger Transactions
Target Financials at Announcement
---------------------------------------------
Total Equity/ NPAs/ Rsrvs/
Announce Complete Assets Assets ROAA ROAE Assets NPLs
Date Date Buyer Short Name ST Target Name ST ($000) (%) (%) (%) (%) (%)
---- ---- ---------------- -- ----------- -- ------ --- --- --- --- ---
03/05/01 Pending First Virginia Banks Inc. VA James River Bankshares, Inc. VA 516,125 10.70 1.16 10.93 0.48 412.37
03/02/01 Pending Harris Bankcorp Inc. IL First National Bancorp, IL 1,067,781 8.99 1.14 12.61 NA NA
Incorporated
02/22/01 Pending WesBanco Inc. WV American Bancorporation WV 715,370 4.79 0.69 15.94 0.29 250.25
02/13/01 Pending North Fork Bancorp. NY Commercial Bank of New York NY 1,526,148 6.62 0.72 11.13 0.00 0.00
01/31/01 Pending Hancock Holding Co. MS Lamar Capital Corporation MS 407,317 8.64 0.92 11.65 0.58 283.23
01/26/01 Pending Royal Bank of Canada Centura Banks, Inc. NC 11,482,009 8.33 0.88 11.10 0.47 215.11
01/24/01 Pending BB&T Corp. NC F&M National Corporation VA 3,568,780 9.51 1.43 14.81 0.62 NA
01/24/01 Pending BB&T Corp. NC Virginia Capital Bancshares, VA 537,264 28.58 1.50 4.99 0.76 159.24
Inc.
01/16/01 Pending United Parcel Service Inc. GA First International Bancorp, CT 322,046 18.60 2.39 13.47 1.39 118.70
Inc.
12/27/00 Pending Fulton Fin Corp. PA Drovers Bncshrs Corp PA 755,308 7.13 0.63 9.03 0.28 210.83
12/18/00 Pending F.N.B. Corp. PA Citizens Cmmnty Bncrp, Inc. FL 154,419 11.45 0.67 4.98 0.13 NA
12/14/00 Pending Zions Bncrp. UT Eldorado Bncshrs, Inc. CA 1,262,391 9.92 0.65 6.99 0.79 109.18
12/11/00 Pending SouthTrust Corp. AL Bay Bncshrs Inc. TX 332,723 8.60 1.00 12.00 NA 0.00
12/05/00 Pending BB&T Corp. NC Century South Banks, Inc. GA 1,614,497 9.66 1.33 13.95 0.52 258.60
11/29/00 Pending Cmmnty Bk System Inc. NY First Liberty Bk Corp. PA 646,661 9.30 0.78 8.56 0.24 515.29
11/21/00 Pending Park National Corp. OH Security Banc Corp OH 986,529 12.42 1.76 14.45 0.64 137.87
11/20/00 Pending Fifth Third Bncrp OH Old Kent Fin Corp MI 22,518,600 7.11 1.21 17.28 0.40 284.38
11/02/00 Pending Financial Institutions Inc. NY Bath National Corp. NY 287,343 9.66 0.24 2.39 1.03 61.64
11/02/00 Pending PBOC Hldngs Inc. CA BYL Bncrp CA 322,320 9.01 0.10 1.15 1.16 90.56
11/01/00 01/30/01 Comerica Inc. MI Imperial Bncrp CA 7,441,954 6.79 1.30 16.85 0.90 136.18
10/30/00 03/01/01 Wachovia Corp. NC Republic Security Fin Corp FL 3,396,980 6.09 0.71 11.89 0.30 246.54
10/25/00 03/09/01 Fifth Third Bncrp OH Capital Hldngs Inc. OH 1,084,667 8.72 1.12 13.09 NA NA
10/17/00 Pending PremierWest Bncrp OR Timberline Bncshrs, Inc CA 92,422 8.62 0.90 10.61 NA 0.00
10/11/00 Pending Century Bncshrs Inc. DC GrandBanc, Inc. MD 114,122 5.14 0.12 2.12 0.10 0.00
10/04/00 02/27/01 Firstar Corp. WI U.S. Bncrp MN 86,174,000 9.20 1.86 19.82 0.47 284.61
10/02/00 03/01/01 FleetBoston Fin Corp. MA Summit Bncrp NJ 38,985,132 7.54 1.36 17.74 0.31 NA
09/20/00 Pending Humboldt Bncrp CA Tehama Bncrp CA 233,392 8.62 1.27 14.39 0.28 485.51
09/19/00 02/20/01 Synovus Fin Corp. GA Carolina Southern Bank SC 212,410 10.97 1.23 11.18 0.30 276.90
09/13/00 12/31/00 Chase Manhattan Corp. NY J.P. Morgan & Co, Inc NY 266,323,000 4.41 0.88 20.42 0.05 NA
09/06/00 01/19/01 Valley National Bncrp NJ Merchants NY Bncrp, Inc. NY 1,369,676 7.06 1.61 22.74 0.07 NA
08/24/00 12/29/00 First Banks Inc. MO Millennium Bank CA 104,507 10.47 1.37 13.07 0.95 417.05
08/23/00 12/27/00 BB&T Corp. NC BankFirst Corp TN 848,807 10.36 1.06 10.25 0.61 190.28
08/21/00 01/11/01 BOK Fin Corp. OK CNBT Bncshrs, Inc. TX 423,820 7.67 1.22 16.00 0.08 NA
08/07/00 01/16/01 First Cmmnty Bncrp CA Professional Bncrp Inc. CA 287,771 5.10 0.02 0.30 3.43 70.66
07/27/00 01/08/01 BB&T Corp. NC FCNB Corp. MD 1,593,067 5.58 0.92 16.35 0.52 138.24
07/24/00 01/03/01 National Penn Bncshrs Inc. PA Cmmnty Independent Bank, Inc. PA 108,529 6.72 0.41 6.03 2.38 49.44
07/11/00 Pending FNB Corp. VA CNB Hldngs, Inc. VA 51,084 11.63 1.04 8.96 NA 190.96
07/10/00 02/09/01 M&T Bk Corp. NY Premier National Bncrp Inc. NY 1,570,131 8.81 1.34 15.26 0.62 256.99
07/06/00 Pending F&M National Corp. VA Atlantic Fin Corp VA 385,473 11.26 1.19 10.57 0.39 204.78
06/27/00 10/13/00 U.S. Bncrp MN Scripps Fin Corp CA 643,322 7.27 1.15 15.81 0.60 162.15
05/17/00 10/06/00 M&T Bk Corp. NY Keystone Fin, Inc. PA 7,012,346 7.93 1.13 14.28 0.56 168.90
04/25/00 07/01/00 Cowlitz Bncrp. WA Northern Bk of Commerce OR 55,262 6.18 -1.92 -27.56 1.05 285.57
04/18/00 09/05/00 Cardinal Fin Corp. VA Heritage Bncrp Inc. VA 59,939 14.34 0.30 2.06 0.00 NA
04/17/00 08/31/00 BncrpSouth Inc. MS First United Bncshrs, Inc. AR 2,666,047 9.74 1.30 12.80 0.47 202.20
04/10/00 10/25/00 Wells Fargo & Co. CA First Security Corp UT 22,992,927 7.70 1.22 16.18 0.29 294.57
03/27/00 11/06/00 Niagara Bncrp Inc. (MHC) NY Iroquois Bncrp, Inc. NY 595,126 6.53 0.81 12.07 0.54 118.48
03/21/00 10/13/00 Greater Bay Bncrp CA Bank of Petaluma CA 189,629 7.74 1.16 15.22 0.14 NA
03/01/00 08/10/00 State National Bancshrs, Inc TX Independent Bnkshrs, Inc. TX 357,488 7.00 0.70 10.19 0.20 NA
02/23/00 08/01/00 Fulton Fin Corp. PA Skylands Fin Corp NJ 214,334 7.04 1.15 15.92 0.82 131.46
02/07/00 07/06/00 BB&T Corp. NC One Valley Bncrp, Inc. WV 6,583,061 8.49 1.30 14.15 0.18 527.89
02/07/00 06/23/00 Huntington Bncshrs Inc. OH Empire Banc Corp MI 505,896 8.47 1.41 16.31 0.60 213.59
02/03/00 07/31/00 Pacific Capital Bncrp CA San Benito Bank CA 200,005 8.78 1.22 13.24 0.14 492.33
02/02/00 06/16/00 Wells Fargo & Co. CA First Commerce Bncshrs, Inc. NE 2,545,612 9.82 1.40 12.91 NA NA
01/27/00 07/21/00 Greater Bay Bncrp CA Bank of Santa Clara CA 328,588 9.13 1.31 14.42 0.05 NA
01/26/00 07/27/00 Sterling Fin Corp. PA Hanover Bncrp, Inc. PA 509,882 6.64 0.93 12.88 0.11 NA
01/21/00 07/14/00 Mercantile Bnkshrs Corp. MD Union National Bncrp, Inc MD 308,629 8.18 1.04 13.04 0.09 NA
01/10/00 06/06/00 Carolina First Corp SC Anchor Fin Corp SC 1,223,777 7.23 1.15 15.23 0.29 345.16
Deal Terms and Pricing at Announcement
------------------------------------------------------------------
Deal Price/
Announce Complete Value Share P/B P/TB P/E P/A
Date Date Buyer Short Name ($M) ($) Consid. (%) (%) (x) (%)
---- ---- ---------------- ---- --- ------- --- --- --- ---
03/05/01 Pending First Virginia Banks Inc. 110.7 23.71 Mixed 195.60 207.41 18.97 21.45
03/02/01 Pending Harris Bankcorp Inc. 220.3 72.50 Mixed 229.36 247.61 19.13 20.63
02/22/01 Pending WesBanco Inc. 74.0 23.65 Stock 215.98 227.40 14.51 10.34
02/13/01 Pending North Fork Bancorp. 175.2 32.00 Cash 167.71 195.00 17.20 11.48
01/31/01 Pending Hancock Holding Co. 47.4 11.00 Mixed 134.80 135.14 12.22 11.64
01/26/01 Pending Royal Bank of Canada 2,330.0 57.85 Stock 238.47 279.34 23.42 20.29
01/24/01 Pending BB&T Corp. 1,162.8 40.67 Stock 295.42 322.03 21.86 28.80
01/24/01 Pending BB&T Corp. 175.5 18.50 Stock 111.92 111.92 20.33 32.67
01/16/01 Pending United Parcel Service Inc. 78.8 9.43 Stock 125.90 143.75 10.84 24.47
12/27/00 Pending Fulton Fin Corp. 146.6 28.44 Stock 267.82 268.08 25.86 19.41
12/18/00 Pending F.N.B. Corp. 38.6 11.00 Stock 210.33 210.33 45.83 25.00
12/14/00 Pending Zions Bncrp. 204.0 13.69 Stock 154.46 279.29 NM 16.16
12/11/00 Pending SouthTrust Corp. 53.0 26.42 Cash 181.96 235.68 16.51 15.93
12/05/00 Pending BB&T Corp. 426.5 30.81 Stock 271.18 290.62 22.99 26.42
11/29/00 Pending Cmmnty Bk System Inc. 87.1 13.61 Stock 143.98 NA 17.67 13.47
11/21/00 Pending Park National Corp. 307.2 25.99 Stock 250.12 274.70 18.05 31.14
11/20/00 Pending Fifth Third Bncrp 4,961.8 35.57 Mixed 302.63 330.54 18.42 21.65
11/02/00 Pending Financial Institutions Inc. 62.6 48.00 Cash 225.56 227.38 45.28 21.79
11/02/00 Pending PBOC Hldngs Inc. 38.9 15.00 Cash 131.12 137.11 18.07 12.07
11/01/00 01/30/01 Comerica Inc. 1,289.4 27.74 Stock 240.42 NA 12.73 17.33
10/30/00 03/01/01 Wachovia Corp. 342.9 7.00 Stock 165.09 184.70 13.46 10.09
10/25/00 03/09/01 Fifth Third Bncrp 245.4 32.82 Stock 244.36 244.36 20.77 22.62
10/17/00 Pending PremierWest Bncrp 14.0 13.50 Mixed 170.67 170.67 15.34 15.15
10/11/00 Pending Century Bncshrs Inc. 11.2 2.17 Mixed 148.04 176.17 NM 7.60
10/04/00 02/27/01 Firstar Corp. 21,237.1 28.15 Stock 266.16 443.25 13.77 24.45
10/02/00 03/01/01 FleetBoston Fin Corp. 6,990.7 39.78 Stock 235.66 291.86 15.18 17.93
09/20/00 Pending Humboldt Bncrp 40.2 20.41 Stock 191.31 196.47 14.38 17.22
09/19/00 02/20/01 Synovus Fin Corp. 64.1 17.29 Stock 272.36 272.36 23.37 30.18
09/13/00 12/31/00 Chase Manhattan Corp. 34,422.7 195.18 Mixed 321.22 343.50 17.55 12.66
09/06/00 01/19/01 Valley National Bncrp 375.9 20.04 Stock 387.60 389.11 18.05 27.44
08/24/00 12/29/00 First Banks Inc. 20.8 8.10 Cash 171.25 171.25 16.20 19.90
08/23/00 12/27/00 BB&T Corp. 147.9 12.21 Stock 155.75 159.00 16.07 17.42
08/21/00 01/11/01 BOK Fin Corp. 91.4 18.22 Cash 276.90 276.90 17.69 21.57
08/07/00 01/16/01 First Cmmnty Bncrp 16.3 8.04 Mixed 111.19 111.19 NM 5.66
07/27/00 01/08/01 BB&T Corp. 216.7 18.13 Stock 243.29 259.67 19.49 13.60
07/24/00 01/03/01 National Penn Bncshrs Inc. 14.0 19.69 Stock 188.76 188.76 57.91 12.90
07/11/00 Pending FNB Corp. 10.1 10.60 Mixed 165.37 NA 55.79 19.97
07/10/00 02/09/01 M&T Bk Corp. 343.2 21.00 Mixed 242.77 250.90 16.54 21.86
07/06/00 Pending F&M National Corp. 71.7 16.85 Stock 162.16 165.99 17.55 18.60
06/27/00 10/13/00 U.S. Bncrp 155.5 22.01 Stock 325.55 325.55 32.85 24.17
05/17/00 10/06/00 M&T Bk Corp. 1,026.7 21.01 Mixed 184.49 204.01 21.23 14.64
04/25/00 07/01/00 Cowlitz Bncrp. 4.1 3.35 Cash 120.50 120.50 NM 7.43
04/18/00 09/05/00 Cardinal Fin Corp. 13.9 6.00 Mixed 160.00 160.00 NM 23.19
04/17/00 08/31/00 BncrpSouth Inc. 455.7 18.00 Stock 175.27 186.72 13.64 17.09
04/10/00 10/25/00 Wells Fargo & Co. 2,778.3 14.11 Stock 156.27 196.81 10.23 12.08
03/27/00 11/06/00 Niagara Bncrp Inc. (MHC) 80.3 33.25 Cash 195.59 203.36 16.96 13.49
03/21/00 10/13/00 Greater Bay Bncrp 39.9 26.03 Stock 254.95 256.20 16.90 21.04
03/01/00 08/10/00 State National Bancshrs, Inc 45.5 20.00 Cash 180.67 309.12 18.02 12.73
02/23/00 08/01/00 Fulton Fin Corp. 33.2 12.58 Stock 208.94 230.37 14.63 15.49
02/07/00 07/06/00 BB&T Corp. 1,202.2 35.20 Stock 210.53 230.82 14.85 18.26
02/07/00 06/23/00 Huntington Bncshrs Inc. 138.7 43.25 Stock 303.96 306.11 19.75 27.42
02/03/00 07/31/00 Pacific Capital Bncrp 53.7 18.04 Stock 289.98 291.39 23.42 26.85
02/02/00 06/16/00 Wells Fargo & Co. 479.7 35.95 Stock 191.73 197.20 16.19 18.84
01/27/00 07/21/00 Greater Bay Bncrp 89.5 36.65 Stock 282.79 282.79 20.82 27.24
01/26/00 07/27/00 Sterling Fin Corp. 97.1 24.76 Stock 285.92 285.92 21.16 19.04
01/21/00 07/14/00 Mercantile Bnkshrs Corp. 66.6 33.57 Stock 261.01 286.16 19.98 21.58
01/10/00 06/06/00 Carolina First Corp 303.7 35.89 Stock 327.15 329.55 21.62 24.82
Control Premium
---------------------------------------------------
Prem/ Relative to Previous Trading Price
----------------------------------------
Announce Complete Deps 1 Day 1 Month 3 Month 1 Year
Date Date Buyer Short Name (%) (%) (%) (%) (%)
---- ---- ---------------- --- --- --- --- ---
03/05/01 Pending First Virginia Banks Inc. 14.85 59.37 68.58 67.83 97.55
03/02/01 Pending Harris Bankcorp Inc. 17.08 9.02 9.02 9.84 9.84
02/22/01 Pending WesBanco Inc. 10.10 58.99 81.92 127.95 45.53
02/13/01 Pending North Fork Bancorp. 8.58 50.58 135.94 173.79 194.25
01/31/01 Pending Hancock Holding Co. 5.11 28.46 62.96 44.26 9.31
01/26/01 Pending Royal Bank of Canada 23.61 29.45 26.97 53.50 43.28
01/24/01 Pending BB&T Corp. 26.21 47.23 53.11 63.91 58.32
01/24/01 Pending BB&T Corp. 7.06 -9.75 13.84 18.40 23.33
01/16/01 Pending United Parcel Service Inc. NA 30.63 34.71 27.86 16.06
12/27/00 Pending Fulton Fin Corp. 18.27 44.02 97.86 92.83 46.58
12/18/00 Pending F.N.B. Corp. 20.27 100.00 46.67 45.45 25.71
12/14/00 Pending Zions Bncrp. 14.26 54.20 73.78 62.19 30.33
12/11/00 Pending SouthTrust Corp. 11.80 20.09 14.87 65.13 42.81
12/05/00 Pending BB&T Corp. 25.41 26.71 62.14 49.36 36.92
11/29/00 Pending Cmmnty Bk System Inc. NA 2.69 23.69 19.61 -24.41
11/21/00 Pending Park National Corp. 29.49 44.37 42.39 42.39 -10.77
11/20/00 Pending Fifth Third Bncrp 25.44 42.27 39.48 20.82 -8.07
11/02/00 Pending Financial Institutions Inc. 18.18 29.73 29.73 4.35 -4.95
11/02/00 Pending PBOC Hldngs Inc. 4.43 48.15 27.66 66.67 28.34
11/01/00 01/30/01 Comerica Inc. NA 14.11 45.07 62.01 21.37
10/30/00 03/01/01 Wachovia Corp. 8.75 17.89 41.77 72.31 -17.04
10/25/00 03/09/01 Fifth Third Bncrp 28.35 29.97 29.17 28.69 3.36
10/17/00 Pending PremierWest Bncrp 7.86 42.11 68.75 107.69 22.73
10/11/00 Pending Century Bncshrs Inc. 4.42 92.62 57.60 28.41 -3.69
10/04/00 02/27/01 Firstar Corp. 34.77 21.38 30.53 42.96 -11.53
10/02/00 03/01/01 FleetBoston Fin Corp. 19.06 15.72 44.98 61.54 23.59
09/20/00 Pending Humboldt Bncrp 10.98 20.08 19.20 43.25 116.43
09/19/00 02/20/01 Synovus Fin Corp. 27.27 28.10 57.22 33.03 19.07
09/13/00 12/31/00 Chase Manhattan Corp. 49.93 5.75 35.66 50.64 56.37
09/06/00 01/19/01 Valley National Bncrp 42.62 14.51 17.02 17.44 10.18
08/24/00 12/29/00 First Banks Inc. 14.25 15.71 149.23 140.00 109.03
08/23/00 12/27/00 BB&T Corp. 11.27 9.76 29.39 52.64 35.21
08/21/00 01/11/01 BOK Fin Corp. 19.81 10.42 17.55 47.23 54.24
08/07/00 01/16/01 First Cmmnty Bncrp 0.70 110.86 114.37 89.15 -61.26
07/27/00 01/08/01 BB&T Corp. 14.67 -8.81 20.83 25.00 -15.70
07/24/00 01/03/01 National Penn Bncshrs Inc. 8.13 96.88 101.93 123.41 70.27
07/11/00 Pending FNB Corp. NA 32.50 NA NA 16.16
07/10/00 02/09/01 M&T Bk Corp. 18.32 57.01 61.54 61.54 14.07
07/06/00 Pending F&M National Corp. 9.82 22.53 25.97 52.30 -5.75
06/27/00 10/13/00 U.S. Bncrp 20.32 29.45 76.06 89.31 46.71
05/17/00 10/06/00 M&T Bk Corp. 11.32 33.42 22.70 22.26 -33.95
04/25/00 07/01/00 Cowlitz Bncrp. 1.49 57.65 34.00 7.20 -44.17
04/18/00 09/05/00 Cardinal Fin Corp. 12.26 60.00 65.52 60.00 47.69
04/17/00 08/31/00 BncrpSouth Inc. 11.94 42.57 61.80 29.73 5.11
04/10/00 10/25/00 Wells Fargo & Co. 11.51 15.78 16.98 -38.65 -21.33
03/27/00 11/06/00 Niagara Bncrp Inc. (MHC) 11.09 86.01 144.04 121.67 54.65
03/21/00 10/13/00 Greater Bay Bncrp 16.69 11.36 0.84 13.79 22.49
03/01/00 08/10/00 State National Bancshrs, Inc 11.43 21.21 54.59 31.15 75.82
02/23/00 08/01/00 Fulton Fin Corp. 10.85 22.71 13.06 7.05 20.06
02/07/00 07/06/00 BB&T Corp. 16.53 30.07 20.34 -3.89 15.41
02/07/00 06/23/00 Huntington Bncshrs Inc. 23.46 39.53 51.77 43.58 8.82
02/03/00 07/31/00 Pacific Capital Bncrp 26.42 -31.29 -26.00 -26.38 -9.82
02/02/00 06/16/00 Wells Fargo & Co. 16.34 8.94 40.98 71.19 28.39
01/27/00 07/21/00 Greater Bay Bncrp 24.19 6.62 9.40 16.35 76.62
01/26/00 07/27/00 Sterling Fin Corp. 16.74 70.77 61.05 65.07 42.51
01/21/00 07/14/00 Mercantile Bnkshrs Corp. 21.59 23.60 22.06 18.82 11.89
01/10/00 06/06/00 Carolina First Corp 24.69 37.37 32.92 9.58 8.75
1
RP Financial, LC.
- -----------------
Financial Services Industry Consultants
Acquisition Pricing of Publicly-Traded Banks for Deals Announced 1998 to Present
Excludes Mergers of Equals and Strategic Merger Transactions
Announce Complete
Date Date Buyer Short Name ST Target Name ST
---- ---- ---------------- -- ----------- --
12/27/99 05/19/00 Bank of the Sierra CA Sierra National Bank CA
12/21/99 07/17/00 Wells Fargo & Co. CA National Bncrp of Alaska, Inc. AK
12/15/99 06/15/00 BB&T Corp. NC First Banking Co of SE GA GA
12/14/99 05/18/00 Greater Bay Bncrp CA Coast Bncrp CA
12/08/99 07/01/00 NBT Bncrp Inc. NY Pioneer American Hldng Co Corp PA
12/02/99 03/31/00 Cmmnty National Bncrp TN Cmmnty National Corp TN
11/08/99 04/04/00 First Charter Corp. NC Carolina First Bncshrs, Inc. NC
10/04/99 10/11/00 North Valley Bncrp CA Six Rivers National Bank CA
10/04/99 03/29/00 Summit Bncrp NJ NMBT CORP CT
09/30/99 01/28/00 Wells Fargo & Co. CA North County Bncrp CA
09/28/99 03/08/00 Columbia Bncrp MD Suburban Bncshrs, Inc. MD
09/22/99 03/01/00 City National Corp. CA Pacific Bank, N.A. CA
09/10/99 04/01/00 Old Kent Fin Corp. MI Grand Premier Fin, Inc. IL
09/07/99 12/30/99 F&M Bncrp MD Patapsco Valley Bncshrs, Inc. MD
09/07/99 03/20/00 Gold Banc Corp. KS American Bncshrs, Inc. FL
08/30/99 01/06/00 SJNB Fin Corp. CA Saratoga Bncrp CA
08/23/99 02/18/00 Centura Banks Inc. NC Triangle Bncrp, Inc. NC
08/16/99 02/17/00 NBT Bncrp Inc. NY Lake Ariel Bncrp, Inc. PA
08/02/99 12/31/99 Tompkins Trustco Inc. NY Letchworth Independent Bncshrs NY
07/30/99 02/11/00 Old Kent Fin Corp. MI Merchants Bncrp, Inc. IL
07/30/99 03/10/00 Old National Bncrp IN ANB Corp IN
07/29/99 01/28/00 Wells Fargo & Co. CA Prime Bncshrs, Inc. TX
07/28/99 01/14/00 BB&T Corp. NC Premier Bncshrs, Inc. GA
07/12/99 11/19/99 Fifth Third Bncrp OH Peoples Bk Corp of Indianapolis IN
06/30/99 12/01/99 Webster Fin Corp. CT New England Cmmnty Bncrp, Inc. CT
06/29/99 12/01/99 Hudson United Bncrp NJ JeffBanks, Inc. PA
06/29/99 12/01/99 Hudson United Bncrp NJ Southern Jersey Bncrp of DE NJ
06/21/99 01/11/00 Citizens Fin Group, Inc. RI UST Corp MA
06/16/99 10/29/99 Fifth Third Bncrp OH CNB Bncshrs, Inc. IN
06/07/99 09/29/99 Sky Fin Group Inc. OH Mahoning National Bncrp, Inc OH
06/02/99 05/10/00 Peoples Heritage ME Banknorth Group, Inc. VT
06/01/99 10/01/99 AmSouth Bncrp. AL First American Corp TN
05/19/99 11/15/99 U.S. Bncrp MN Western Bncrp CA
05/18/99 10/04/99 CVB Fin Corp. CA Orange National Bncrp CA
05/10/99 12/31/99 HSBC Hldngs, Plc Republic NY Corp NY
05/03/99 10/15/99 Greater Bay Bncrp CA Bay Commercial Srvcs CA
04/30/99 09/20/99 Firstar Corp. WI Mercantile Bncrp, Inc. MO
04/27/99 10/06/99 Zions Bncrp. UT Regency Bncrp CA
04/19/99 11/01/99 Citizens Banking Corp. MI F&M Bncrp, Inc. WI
03/22/99 10/12/99 PSB Bncrp Inc. PA First Bk of Philadelphia PA
03/19/99 09/03/99 Old Kent Fin Corp. MI Pinnacle Banc Group, Inc. IL
03/19/99 10/05/99 Synovus Fin Corp. GA Merit Hldng Corp GA
02/25/99 08/30/99 BB&T Corp. NC Matewan Bncshrs, Inc. WV
02/25/99 07/01/99 BancWest Corp. HI SierraWest Bncrp CA
02/23/99 07/02/99 MidCity Fin Corp IL Damen Fin Corp IL
02/22/99 07/16/99 Union Planters Corp. TN Republic Banking Corp of FL FL
02/18/99 07/16/99 U.S. Bncrp MN Bank of Commerce CA
02/18/99 08/02/99 Summit Bncrp NJ Prime Bncrp, Inc. PA
02/18/99 11/30/99 Union Bnkshrs Inc. VT Citizens Savings B&T Co VT
02/01/99 07/31/99 Independence Comm. Bk Corp. NY Broad National Bncrp NJ
01/28/99 07/14/99 BB&T Corp. NC Mason-Dixon Bncshrs, Inc. MD
01/26/99 05/21/99 Greater Bay Bncrp CA Bay Area Bncshrs CA
12/30/98 06/14/99 First Security Corp. UT XEON Fin Corp. NV
12/24/98 06/18/99 Banterra Corp. IL Heartland Bncshrs, Inc IL
12/17/98 06/11/99 Valley National Bncrp NJ Ramapo Fin Corp NJ
12/16/98 05/28/99 Chittenden Corp. VT Vermont Fin Srvcs Corp. VT
12/14/98 08/06/99 Sky Fin Group Inc. OH First Western Bncrp, Inc. PA
Target Financials at Announcement
--------------------------------------------------------
Total Equity/ NPAs/ Rsrvs/
Announce Complete Assets Assets ROAA ROAE Assets NPLs
Date Date Buyer Short Name ($000) (%) (%) (%) (%) (%)
---- ---- ---------------- ------ --- --- --- --- ---
12/27/99 05/19/00 Bank of the Sierra 90,545 5.57 0.48 8.77 2.03 22.08
12/21/99 07/17/00 Wells Fargo & Co. 3,060,429 14.54 2.28 15.42 0.29 346.18
12/15/99 06/15/00 BB&T Corp. 419,109 13.05 1.54 12.57 0.58 233.75
12/14/99 05/18/00 Greater Bay Bncrp 350,088 9.12 2.05 21.35 0.52 NA
12/08/99 07/01/00 NBT Bncrp Inc. 421,854 7.56 0.96 11.61 0.91 109.25
12/02/99 03/31/00 Cmmnty National Bncrp 39,806 21.62 0.94 4.23 0.07 NA
11/08/99 04/04/00 First Charter Corp. 762,687 8.34 1.22 14.11 0.29 358.93
10/04/99 10/11/00 North Valley Bncrp 199,983 9.31 0.57 6.23 1.95 81.72
10/04/99 03/29/00 Summit Bncrp 391,930 7.20 0.88 11.64 0.55 213.07
09/30/99 01/28/00 Wells Fargo & Co. 349,003 9.22 1.26 13.79 2.17 47.65
09/28/99 03/08/00 Columbia Bncrp 222,575 9.14 0.43 4.37 0.91 106.67
09/22/99 03/01/00 City National Corp. 728,622 10.10 1.11 10.36 0.35 480.66
09/10/99 04/01/00 Old Kent Fin Corp. 1,574,959 11.92 1.74 14.39 0.32 275.85
09/07/99 12/30/99 F&M Bncrp 173,636 9.60 0.27 2.75 0.42 190.35
09/07/99 03/20/00 Gold Banc Corp. 484,828 5.57 0.40 7.02 0.98 54.02
08/30/99 01/06/00 SJNB Fin Corp. 148,558 10.00 1.29 12.62 0.00 NA
08/23/99 02/18/00 Centura Banks Inc. 2,285,333 7.21 1.25 16.05 0.23 590.77
08/16/99 02/17/00 NBT Bncrp Inc. 492,894 7.12 0.82 10.43 0.63 107.11
08/02/99 12/31/99 Tompkins Trustco Inc. 280,555 12.09 1.37 11.44 NA 583.57
07/30/99 02/11/00 Old Kent Fin Corp. 920,961 7.79 1.09 26.23 0.66 153.17
07/30/99 03/10/00 Old National Bncrp 642,494 9.53 1.03 10.70 0.27 320.79
07/29/99 01/28/00 Wells Fargo & Co. 1,199,706 7.29 1.24 16.40 0.14 555.81
07/28/99 01/14/00 BB&T Corp. 1,510,890 9.09 1.58 16.60 0.28 489.08
07/12/99 11/19/99 Fifth Third Bncrp 650,445 8.06 1.23 15.25 0.12 NA
06/30/99 12/01/99 Webster Fin Corp. 786,909 9.17 1.11 11.77 1.02 NA
06/29/99 12/01/99 Hudson United Bncrp 1,684,467 7.90 0.94 11.77 0.84 NA
06/29/99 12/01/99 Hudson United Bncrp 465,446 6.66 0.22 3.25 NA 39.88
06/21/99 01/11/00 Citizens Fin Group, Inc. 5,929,827 9.02 1.17 12.87 0.48 266.33
06/16/99 10/29/99 Fifth Third Bncrp 7,218,796 7.17 1.39 19.32 0.56 152.92
06/07/99 09/29/99 Sky Fin Group Inc. 808,691 12.01 1.85 15.40 NA NA
06/02/99 05/10/00 Peoples Heritage 4,338,522 7.48 1.23 16.75 0.50 227.00
06/01/99 10/01/99 AmSouth Bncrp. 20,326,467 8.94 1.31 14.73 0.26 NA
05/19/99 11/15/99 U.S. Bncrp 2,496,237 14.22 1.44 10.08 0.79 183.91
05/18/99 10/04/99 CVB Fin Corp. 279,054 8.66 1.06 12.57 0.74 80.61
05/10/99 12/31/99 HSBC Hldngs, Plc 50,453,034 6.34 0.39 6.05 0.19 NA
05/03/99 10/15/99 Greater Bay Bncrp 144,202 7.90 0.96 11.28 0.35 196.39
04/30/99 09/20/99 Firstar Corp. 35,578,819 8.72 1.33 15.20 0.49 284.80
04/27/99 10/06/99 Zions Bncrp. 231,967 9.68 1.77 18.17 0.81 NA
04/19/99 11/01/99 Citizens Banking Corp. 2,429,651 9.85 1.43 14.58 0.68 174.45
03/22/99 10/12/99 PSB Bncrp Inc. 63,479 9.04 1.27 14.43 2.21 95.91
03/19/99 09/03/99 Old Kent Fin Corp. 1,147,478 10.23 1.36 14.42 0.36 173.81
03/19/99 10/05/99 Synovus Fin Corp. 306,367 12.18 1.70 14.36 0.13 NA
02/25/99 08/30/99 BB&T Corp. 683,634 9.78 0.92 9.17 0.89 120.91
02/25/99 07/01/99 BancWest Corp. 879,169 8.90 0.92 10.48 1.36 80.22
02/23/99 07/02/99 MidCity Fin Corp 220,204 19.61 0.87 4.41 0.24 86.68
02/22/99 07/16/99 Union Planters Corp. 1,542,658 10.97 1.00 9.35 0.66 149.87
02/18/99 07/16/99 U.S. Bncrp 638,166 9.56 1.92 24.90 0.37 220.03
02/18/99 08/02/99 Summit Bncrp 1,039,340 8.64 1.20 14.42 0.35 328.83
02/18/99 11/30/99 Union Bnkshrs Inc. 98,907 10.78 1.14 10.66 0.76 150.63
02/01/99 07/31/99 Independence Comm. Bk Corp. 622,276 7.09 1.22 18.35 0.72 187.31
01/28/99 07/14/99 BB&T Corp. 1,083,283 7.54 1.02 13.96 0.67 131.16
01/26/99 05/21/99 Greater Bay Bncrp 151,605 9.11 1.71 18.08 0.10 NA
12/30/98 06/14/99 First Security Corp. 121,024 8.11 1.56 19.34 0.10 NA
12/24/98 06/18/99 Banterra Corp. 62,905 18.07 -0.07 -0.40 1.33 74.81
12/17/98 06/11/99 Valley National Bncrp 327,779 10.18 1.18 11.27 0.70 NM
12/16/98 05/28/99 Chittenden Corp. 2,110,300 10.17 0.89 8.71 0.65 146.59
12/14/98 08/06/99 Sky Fin Group Inc. 2,203,139 6.72 1.00 13.35 0.11 NA
Deal Terms and Pricing at Announcement
----------------------------------------------------------------
Deal Price/
Announce Complete Value Share P/B P/TB P/E P/A
Date Date Buyer Short Name ($M) ($) Consid. (%) (%) (x) (%)
---- ---- ---------------- ---- --- ------- --- --- --- ---
12/27/99 05/19/00 Bank of the Sierra 9.1 11.43 Cash 180.31 192.35 NM 10.05
12/21/99 07/17/00 Wells Fargo & Co. 1,098.7 36.36 Stock 246.99 250.05 17.82 35.90
12/15/99 06/15/00 BB&T Corp. 122.1 21.83 Stock 223.21 NA 18.66 29.13
12/14/99 05/18/00 Greater Bay Bncrp 135.6 27.17 Stock 408.51 408.51 20.43 38.73
12/08/99 07/01/00 NBT Bncrp Inc. 84.8 29.33 Stock 263.29 268.11 20.95 20.10
12/02/99 03/31/00 Cmmnty National Bncrp 6.8 14.75 Cash 122.20 122.20 36.88 26.43
11/08/99 04/04/00 First Charter Corp. 263.2 42.51 Stock 401.00 439.57 32.95 34.51
10/04/99 10/11/00 North Valley Bncrp 24.0 16.04 Stock 126.01 169.03 NM 12.00
10/04/99 03/29/00 Summit Bncrp 76.1 26.00 Stock 245.75 247.15 21.31 19.42
09/30/99 01/28/00 Wells Fargo & Co. 112.9 21.00 Stock 321.10 323.08 22.34 32.35
09/28/99 03/08/00 Columbia Bncrp 34.5 3.00 Stock 166.67 166.67 27.27 15.50
09/22/99 03/01/00 City National Corp. 151.4 29.00 Mixed 197.14 220.20 42.03 20.78
09/10/99 04/01/00 Old Kent Fin Corp. 393.1 16.66 Mixed 206.44 225.44 12.34 24.96
09/07/99 12/30/99 F&M Bncrp 47.0 34.07 Stock 279.29 292.47 NM 27.07
09/07/99 03/20/00 Gold Banc Corp. 93.1 18.18 Stock 338.55 339.18 45.45 19.20
08/30/99 01/06/00 SJNB Fin Corp. 43.1 23.28 Stock 248.66 248.66 20.60 29.01
08/23/99 02/18/00 Centura Banks Inc. 607.7 23.40 Stock 356.16 412.70 24.38 26.59
08/16/99 02/17/00 NBT Bncrp Inc. 92.6 18.50 Stock 255.88 272.06 25.00 18.79
08/02/99 12/31/99 Tompkins Trustco Inc. 83.9 19.35 Stock 246.81 NA 23.14 18.94
07/30/99 02/11/00 Old Kent Fin Corp. 185.9 35.12 Stock 253.57 284.14 20.07 20.19
07/30/99 03/10/00 Old National Bncrp 212.8 37.58 Stock 299.11 358.06 25.58 29.05
07/29/99 01/28/00 Wells Fargo & Co. 243.9 24.11 Stock 270.31 284.34 17.86 20.33
07/28/99 01/14/00 BB&T Corp. 598.4 18.43 Stock 338.56 347.19 22.07 30.35
07/12/99 11/19/99 Fifth Third Bncrp 228.2 73.00 Stock 417.84 417.84 27.44 35.08
06/30/99 12/01/99 Webster Fin Corp. 221.1 30.08 Stock 290.05 310.40 27.59 28.10
06/29/99 12/01/99 Hudson United Bncrp 386.9 33.19 Stock 274.08 285.39 22.89 22.97
06/29/99 12/01/99 Hudson United Bncrp 58.6 44.02 Stock 160.20 160.20 NM 12.59
06/21/99 01/11/00 Citizens Fin Group, Inc. 1,412.0 32.00 Cash 256.00 282.69 25.60 23.81
06/16/99 10/29/99 Fifth Third Bncrp 2,327.9 59.68 Stock 332.29 358.65 32.97 32.25
06/07/99 09/29/99 Sky Fin Group Inc. 305.6 48.66 Stock 315.77 315.77 21.44 37.91
06/02/99 05/10/00 Peoples Heritage 778.2 32.85 Stock 234.98 305.87 22.05 17.94
06/01/99 10/01/99 AmSouth Bncrp. 6,340.5 53.09 Stock 340.76 388.08 28.85 31.19
05/19/99 11/15/99 U.S. Bncrp 958.1 44.40 Stock 261.45 437.39 47.74 38.38
05/18/99 10/04/99 CVB Fin Corp. 77.3 36.66 Stock 303.45 305.73 21.95 27.70
05/10/99 12/31/99 HSBC Hldngs, Plc 8,077.8 72.00 Cash 277.46 305.73 51.80 16.01
05/03/99 10/15/99 Greater Bay Bncrp 29.2 21.49 Stock 203.90 205.26 22.62 20.25
04/30/99 09/20/99 Firstar Corp. 10,669.6 66.00 Stock 335.87 445.93 27.39 29.99
04/27/99 10/06/99 Zions Bncrp. 63.4 22.43 Stock 262.33 264.49 17.12 27.33
04/19/99 11/01/99 Citizens Banking Corp. 822.2 50.82 Stock 331.67 347.62 23.79 32.38
03/22/99 10/12/99 PSB Bncrp Inc. 15.7 6.00 Stock 273.66 273.66 20.88 24.73
03/19/99 09/03/99 Old Kent Fin Corp. 239.8 32.27 Stock 205.12 248.96 16.55 20.90
03/19/99 10/05/99 Synovus Fin Corp. 118.2 24.15 Stock 302.27 302.27 23.45 38.58
02/25/99 08/30/99 BB&T Corp. 124.1 26.13 Stock 202.09 251.01 21.07 18.15
02/25/99 07/01/99 BancWest Corp. 198.7 36.08 Stock 244.44 250.73 25.59 22.60
02/23/99 07/02/99 MidCity Fin Corp 53.8 18.35 Cash 119.86 119.86 26.99 24.43
02/22/99 07/16/99 Union Planters Corp. 419.0 19.25 Cash 241.83 259.78 25.00 27.16
02/18/99 07/16/99 U.S. Bncrp 306.3 19.13 Stock 455.36 455.36 22.50 48.00
02/18/99 08/02/99 Summit Bncrp 302.5 26.58 Stock 324.91 335.16 24.61 29.11
02/18/99 11/30/99 Union Bnkshrs Inc. 22.3 146.74 Stock 209.15 209.15 20.61 22.55
02/01/99 07/31/99 Independence Comm. Bk Corp. 138.8 26.50 Mixed 296.09 297.42 18.66 22.31
01/28/99 07/14/99 BB&T Corp. 245.8 48.34 Stock 299.16 326.43 23.35 22.69
01/26/99 05/21/99 Greater Bay Bncrp 43.6 41.78 Stock 303.84 303.84 19.08 28.76
12/30/98 06/14/99 First Security Corp. 32.2 10.14 Stock 290.54 290.54 NM 26.61
12/24/98 06/18/99 Banterra Corp. 13.2 15.75 Cash 115.38 115.38 NM 20.98
12/17/98 06/11/99 Valley National Bncrp 105.1 12.09 Stock 293.35 297.68 29.48 32.06
12/16/98 05/28/99 Chittenden Corp. 454.2 34.64 Stock 208.18 285.58 27.94 21.52
12/14/98 08/06/99 Sky Fin Group Inc. 426.5 37.24 Stock 279.98 479.87 22.03 19.36
Control Premium
------------------------------------------------
Prem/ Relative to Previous Trading Price
------------------------------------
Announce Complete Deps 1 Day 1 Month 3 Month 1 Year
Date Date Buyer Short Name (%) (%) (%) (%) (%)
---- ---- ---------------- --- --- --- --- ---
12/27/99 05/19/00 Bank of the Sierra 5.67 17.23 27.00 42.88 NA
12/21/99 07/17/00 Wells Fargo & Co. 36.94 10.59 31.02 42.58 11.44
12/15/99 06/15/00 BB&T Corp. NA -2.98 14.14 9.15 -10.44
12/14/99 05/18/00 Greater Bay Bncrp 42.54 20.74 32.52 43.93 62.19
12/08/99 07/01/00 NBT Bncrp Inc. 20.51 5.70 16.16 19.72 27.53
12/02/99 03/31/00 Cmmnty National Bncrp 8.02 14.56 9.26 20.41 31.11
11/08/99 04/04/00 First Charter Corp. 35.48 63.48 115.22 104.85 55.86
10/04/99 10/11/00 North Valley Bncrp 6.84 18.82 16.66 16.66 60.41
10/04/99 03/29/00 Summit Bncrp 16.30 62.50 57.58 87.39 47.52
09/30/99 01/28/00 Wells Fargo & Co. 27.60 7.01 23.53 25.37 64.86
09/28/99 03/08/00 Columbia Bncrp 7.74 37.14 29.73 20.00 2.11
09/22/99 03/01/00 City National Corp. 15.73 42.33 56.76 43.21 31.82
09/10/99 04/01/00 Old Kent Fin Corp. 19.58 11.07 25.74 41.79 35.75
09/07/99 12/30/99 F&M Bncrp 22.01 23.90 27.38 28.58 -27.50
09/07/99 03/20/00 Gold Banc Corp. 21.73 51.50 120.36 117.07 96.54
08/30/99 01/06/00 SJNB Fin Corp. 32.53 22.50 17.11 41.06 45.47
08/23/99 02/18/00 Centura Banks Inc. 31.46 41.82 42.36 50.97 37.14
08/16/99 02/17/00 NBT Bncrp Inc. 20.63 42.31 60.87 72.09 29.50
08/02/99 12/31/99 Tompkins Trustco Inc. NA 40.10 39.47 46.05 14.67
07/30/99 02/11/00 Old Kent Fin Corp. 19.58 8.90 25.43 37.73 15.15
07/30/99 03/10/00 Old National Bncrp 30.06 33.02 60.77 87.90 32.44
07/29/99 01/28/00 Wells Fargo & Co. 19.64 19.81 43.42 50.70 3.43
07/28/99 01/14/00 BB&T Corp. 32.76 -5.19 -1.05 -5.49 -31.59
07/12/99 11/19/99 Fifth Third Bncrp 34.48 52.08 89.60 100.68 105.62
06/30/99 12/01/99 Webster Fin Corp. 26.26 12.44 52.29 49.92 30.77
06/29/99 12/01/99 Hudson United Bncrp 23.16 18.54 29.53 59.96 6.38
06/29/99 12/01/99 Hudson United Bncrp 7.60 85.36 74.34 53.12 -9.31
06/21/99 01/11/00 Citizens Fin Group, Inc. 23.74 31.96 33.33 38.01 22.49
06/16/99 10/29/99 Fifth Third Bncrp 37.14 44.02 47.13 42.52 36.41
06/07/99 09/29/99 Sky Fin Group Inc. 41.01 54.48 72.25 76.95 39.53
06/02/99 05/10/00 Peoples Heritage 15.87 22.80 24.26 20.00 -8.27
06/01/99 10/01/99 AmSouth Bncrp. 37.95 30.08 36.79 27.93 17.00
05/19/99 11/15/99 U.S. Bncrp 39.68 13.83 29.98 47.98 3.09
05/18/99 10/04/99 CVB Fin Corp. 22.80 31.80 40.99 37.68 27.50
05/10/99 12/31/99 HSBC Hldngs, Plc 16.32 2.86 30.61 81.42 8.78
05/03/99 10/15/99 Greater Bay Bncrp 19.77 15.39 45.70 43.27 36.45
04/30/99 09/20/99 Firstar Corp. 38.13 28.78 37.85 46.87 19.18
04/27/99 10/06/99 Zions Bncrp. 23.74 12.15 36.97 12.15 54.68
04/19/99 11/01/99 Citizens Banking Corp. 31.82 27.84 50.01 58.19 37.17
03/22/99 10/12/99 PSB Bncrp Inc. 19.04 3.23 20.00 20.00 20.00
03/19/99 09/03/99 Old Kent Fin Corp. 17.39 18.68 19.22 13.21 -6.82
03/19/99 10/05/99 Synovus Fin Corp. 37.22 25.87 31.43 28.81 8.54
02/25/99 08/30/99 BB&T Corp. 15.03 -13.26 -19.60 -3.22 -0.46
02/25/99 07/01/99 BancWest Corp. 19.63 26.74 41.49 42.54 -1.15
02/23/99 07/02/99 MidCity Fin Corp 12.32 20.33 24.41 26.55 1.24
02/22/99 07/16/99 Union Planters Corp. 26.72 10.79 57.14 92.50 7.31
02/18/99 07/16/99 U.S. Bncrp 48.08 15.91 16.35 29.11 23.39
02/18/99 08/02/99 Summit Bncrp 34.43 47.66 47.66 41.75 49.74
02/18/99 11/30/99 Union Bnkshrs Inc. 15.09 59.50 60.37 101.01 186.32
02/01/99 07/31/99 Independence Comm. Bk Corp. 21.13 18.11 32.50 68.00 42.69
01/28/99 07/14/99 BB&T Corp. 30.28 74.21 63.88 80.73 40.13
01/26/99 05/21/99 Greater Bay Bncrp 27.75 30.56 52.61 59.15 42.83
12/30/98 06/14/99 First Security Corp. 23.50 35.20 32.98 44.86 57.50
12/24/98 06/18/99 Banterra Corp. 3.91 28.57 38.46 29.90 5.00
12/17/98 06/11/99 Valley National Bncrp 26.30 55.95 82.43 92.42 42.19
12/16/98 05/28/99 Chittenden Corp. 17.77 34.53 55.25 71.07 22.62
12/14/98 08/06/99 Sky Fin Group Inc. 23.80 23.10 46.03 60.16 34.19
2
RP Financial, LC.
- -----------------
Financial Services Industry Consultants
Acquisition Pricing of Publicly-Traded Banks for Deals Announced 1998 to
Present Excludes Mergers of Equals and Strategic Merger Transactions
Target Financials at
---------------------------
Total Equity/
Announce Complete Assets Assets ROAA
Date Date Buyer Short Name ST Target Name ST ($000) (%) (%)
---- -------- ---------------- -- ----------- -- ----- --- ---
12/10/98 07/14/99 BT Fin Corp. PA First Philson Fin Corp PA 213,742 11.83 1.36
12/09/98 06/01/99 M&T Bk Corp. NY FNB Rochester Corp. NY 567,896 6.60 0.88
12/07/98 07/15/99 Lakeland Bncrp NJ High Point Fin Corp. NJ 252,746 9.56 0.85
11/11/98 05/20/99 Webster Fin Corp. CT Village Bncrp, Inc. CT 234,257 7.11 0.88
11/10/98 03/22/99 F&M National Corp. VA Security Bk Corp VA 61,706 12.86 0.49
11/04/98 04/22/99 Webster Fin Corp. CT Maritime Bk & Trust Co CT 103,663 6.81 0.96
10/06/98 12/30/98 Western Bncrp CA PNB Fin Group CA 267,408 10.95 2.88
09/17/98 01/15/99 Commerce Bncrp Inc. NJ Prestige Fin Corp. NJ 310,399 6.83 1.15
09/16/98 01/22/99 Eldorado Bncshrs CA Antelope Valley Bank CA 200,916 10.26 0.87
08/27/98 03/05/99 BB&T Corp. NC MainStreet Fin Corp VA 2,041,955 7.84 1.02
08/25/98 03/31/99 Summit Bncrp NJ New Canaan B&T Co CT 173,422 9.12 1.26
08/11/98 02/12/99 FirstMerit Corp. OH Signal Corp. OH 1,519,719 7.11 1.09
08/07/98 12/31/98 City Hldng Co. WV Horizon Bncrp, Inc. WV 1,043,327 10.91 1.40
07/31/98 12/31/98 Banknorth Group Inc. VT Evergreen Bncrp, Inc. NY 1,048,307 8.19 1.16
07/28/98 01/22/99 Patriot Bk Corp. PA First Lehigh Corp PA 110,628 13.13 1.08
07/20/98 12/31/98 SunTrust Banks Inc. GA Crestar Fin Corp VA 26,161,173 8.43 1.40
07/16/98 12/31/98 First Commonwealth Financial PA Southwest National Corp PA 742,106 11.24 1.17
05/28/98 11/20/98 First American Corp. TN Pioneer Bncshrs, Inc TN 993,087 10.16 0.97
05/26/98 09/15/98 First Banks Inc. MO Republic Bank CA 122,622 4.62 1.32
05/08/98 09/28/98 Mercantile Bncrp. MO First Fin Bncrp IA 568,442 10.60 1.24
04/21/98 10/01/98 Old Kent Fin Corp. MI First Evergreen Corp IL 1,933,096 10.25 0.94
04/17/98 10/23/98 Western Bncrp CA Bank of Los Angeles CA 278,161 11.54 1.38
04/14/98 08/31/98 Anchor Fin Corp. SC ComSouth Bnkshrs, Inc. SC 205,572 7.79 1.24
04/14/98 12/16/98 Susquehanna Bncshrs Inc. PA Cardinal Bncrp, Inc PA 129,941 13.22 1.43
04/09/98 08/21/98 Star Banc Corp OH Trans Fin, Inc. KY 2,115,011 7.13 1.20
04/01/98 08/31/98 Union Planters Corp. TN AMBANC Corp. IN 759,395 10.32 1.14
03/19/98 07/31/98 JeffBanks Inc. PA Regent Bncshrs Corp. PA 225,619 8.04 0.46
03/19/98 08/14/98 New England Cmmnty Bncrp CT Bank of South Windsor CT 155,123 6.99 0.82
03/15/98 07/01/98 St. Paul Bncrp Inc. IL Beverly Bncrp, Inc. IL 669,234 10.22 1.09
03/03/98 08/14/98 Hudson United Bncrp NJ Cmmnty Fin Hldng Corp NJ 150,671 7.69 0.48
02/22/98 07/01/98 Union Planters Corp. TN Magna Group, Inc. MO 7,074,969 8.85 1.09
02/19/98 05/30/98 First Security Corp. UT California State Bank CA 849,232 9.82 1.19
02/13/98 09/11/98 Regions Fin Corp. AL First Cmmnty Banking Srvcs, Inc. GA 120,630 8.51 1.29
02/09/98 06/30/98 Banco Bilbao Vizcaya Argent SA PonceBank PR 1,096,651 8.51 0.96
02/02/98 07/01/98 Mercantile Bncrp. MO Firstbank of Illinois Co. IL 2,170,047 10.50 1.42
01/30/98 07/10/98 Mid-State Bncshrs CA BSM Bncrp CA 335,829 10.34 1.26
01/26/98 09/14/98 Fulton Fin Corp. PA Ambassador Bk-Commonwealth PA 257,731 7.88 0.80
01/15/98 07/01/98 First Midwest Bncrp Inc. IL Heritage Fin Srvcs, Inc. IL 1,284,703 9.03 1.39
01/12/98 07/01/98 Mercantile Bncrp. MO CBT Corp KY 1,044,679 11.22 1.29
01/12/98 03/30/98 National City Corp. OH Fort Wayne National Corp IN 3,292,602 8.80 1.15
01/08/98 07/07/98 Union Planters Corp. TN CB&T, Inc TN 268,119 12.63 1.68
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Average: All Deals 4,721,591 9.30 1.09
Median: All Deals 595,126 8.90 1.15
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Average: 2000-01 Deals 8,891,517 8.91 1.00
Median: 2000-01 Deals 595,126 8.60 1.14
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Average: 1999 Deals 3,058,664 9.56 1.17
Median: 1999 Deals 646,470 9.10 1.21
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Average: 1998 Deals 1,434,341 9.49 1.12
Median: 1998 Deals 331,804 9.34 1.15
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Announcement Deal Terms and Pricing at
-----------------------------------------------------------------------------
NPAs/ Rsrvs/ Deal Price/
Announce Complete ROAE Assets NPLs Value Share P/B P/TB
Date Date Buyer Short Name (%) (%) (%) ($M) ($) Consid. (%) (%)
---- -------- ---------------- ---- --- --- --- ---- ------- --- ---
12/10/98 07/14/99 BT Fin Corp. 11.58 0.10 NA 80.6 46.26 Stock 318.81 318.81
12/09/98 06/01/99 M&T Bk Corp. 13.78 0.37 278.68 128.8 32.72 Mixed 316.15 316.15
12/07/98 07/15/99 Lakeland Bncrp 9.01 1.70 118.55 65.6 18.60 Stock 293.38 293.38
11/11/98 05/20/99 Webster Fin Corp. 12.36 0.58 86.50 47.3 23.50 Stock 271.68 271.68
11/10/98 03/22/99 F&M National Corp. 3.68 2.65 37.13 17.4 17.25 Stock 208.33 208.33
11/04/98 04/22/99 Webster Fin Corp. 13.42 0.15 NM 20.8 26.67 Stock 266.43 266.43
10/06/98 12/30/98 Western Bncrp 25.90 0.62 319.61 96.3 31.63 Stock 292.55 292.55
09/17/98 01/15/99 Commerce Bncrp Inc. 16.54 0.28 234.22 75.2 16.25 Stock 325.65 325.65
09/16/98 01/22/99 Eldorado Bncshrs 8.52 NA NA 44.5 58.00 Stock 215.93 265.93
08/27/98 03/05/99 BB&T Corp. 12.68 0.32 286.02 539.7 37.98 Stock 320.45 340.25
08/25/98 03/31/99 Summit Bncrp 12.88 0.47 259.65 49.4 135.00 Stock 285.41 285.41
08/11/98 02/12/99 FirstMerit Corp. 15.26 0.29 110.06 473.0 37.21 Mixed 321.87 466.85
08/07/98 12/31/98 City Hldng Co. 12.64 0.65 180.07 413.4 45.00 Stock 360.87 378.79
07/31/98 12/31/98 Banknorth Group Inc. 13.72 0.52 270.46 318.7 34.43 Stock 351.28 351.99
07/28/98 01/22/99 Patriot Bk Corp. 8.15 4.42 51.61 23.4 6.63 Stock 157.58 157.58
07/20/98 12/31/98 SunTrust Banks Inc. 16.44 0.29 414.66 9,606.1 83.94 Stock 427.18 469.73
07/16/98 12/31/98 First Commonwealth Financial 10.46 0.46 193.83 269.8 88.63 Stock 325.50 326.22
05/28/98 11/20/98 First American Corp. 9.47 0.51 201.34 292.0 76.31 Stock 284.33 300.80
05/26/98 09/15/98 First Banks Inc. 33.20 4.06 28.79 19.3 14.73 Cash 300.00 300.00
05/08/98 09/28/98 Mercantile Bncrp. 11.77 NA NA 167.2 46.48 Stock 274.03 286.88
04/21/98 10/01/98 Old Kent Fin Corp. 9.51 0.12 153.96 482.3 1,204.98 Stock 243.49 247.80
04/17/98 10/23/98 Western Bncrp 11.89 NA 53.42 111.9 20.22 Stock 300.03 388.88
04/14/98 08/31/98 Anchor Fin Corp. 15.18 0.04 NA 80.8 33.00 Stock 494.12 494.12
04/14/98 12/16/98 Susquehanna Bncshrs Inc. 11.48 0.37 308.04 49.0 46.72 Stock 269.27 269.27
04/09/98 08/21/98 Star Banc Corp 17.03 1.11 97.90 695.8 57.00 Stock 433.80 461.92
04/01/98 08/31/98 Union Planters Corp. 11.14 0.48 185.32 211.1 30.11 Stock 268.32 273.93
03/19/98 07/31/98 JeffBanks Inc. 7.55 NA NA 53.1 15.61 Stock 293.33 293.33
03/19/98 08/14/98 New England Cmmnty Bncrp 12.42 0.48 408.33 35.3 33.67 Stock 297.70 297.70
03/15/98 07/01/98 St. Paul Bncrp Inc. 10.82 0.33 194.32 170.6 28.10 Stock 236.65 239.33
03/03/98 08/14/98 Hudson United Bncrp 5.64 0.56 131.62 28.5 25.28 Stock 224.32 224.32
02/22/98 07/01/98 Union Planters Corp. 12.29 0.45 198.37 2,238.6 61.45 Stock 299.15 391.63
02/19/98 05/30/98 First Security Corp. 11.57 0.60 196.29 302.0 52.81 Stock 324.37 402.19
02/13/98 09/11/98 Regions Fin Corp. 16.24 1.39 129.93 36.5 24.02 Stock 318.41 330.00
02/09/98 06/30/98 Banco Bilbao Vizcaya Argent SA 11.65 3.07 55.15 164.6 26.10 Cash 172.85 172.96
02/02/98 07/01/98 Mercantile Bncrp. 13.66 0.55 193.42 681.4 41.96 Stock 289.54 325.74
01/30/98 07/10/98 Mid-State Bncshrs 11.87 0.67 213.04 81.5 26.50 Stock 227.47 239.60
01/26/98 09/14/98 Fulton Fin Corp. 11.66 0.29 313.31 76.9 34.79 Stock 315.42 316.86
01/15/98 07/01/98 First Midwest Bncrp Inc. 16.12 0.19 538.98 407.9 32.61 Stock 337.56 394.29
01/12/98 07/01/98 Mercantile Bncrp. 11.14 0.56 167.55 275.9 34.36 Stock 230.42 242.63
01/12/98 03/30/98 National City Corp. 12.22 0.45 223.61 846.8 44.44 Mixed 300.05 376.27
01/08/98 07/07/98 Union Planters Corp. 13.81 NA NA 92.0 348.49 Stock 271.87 271.87
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12.24 0.65 209.36 931.22 41.69 255.83 278.74
12.61 0.48 190.66 135.60 26.67 262.33 281.02
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11.48 0.54 214.23 468.96 26.57 216.31 237.44
12.91 0.47 203.49 110.70 21.00 210.33 233.25
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12.79 0.64 216.30 763.58 33.44 270.60 292.84
12.75 0.52 179.18 168.65 28.08 266.80 288.93
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12.58 0.81 195.98 454.40 69.77 288.11 311.89
12.06 0.48 193.63 108.50 34.01 292.94 297.69
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Announcement Control Premium
----------------------------------------------------------------
Prem/ Relative to Previous Trading Price
--------------------------------------
Announce Complete P/E P/A Deps 1 Day 1 Month 3 Month 1 Year
Date Date Buyer Short Name (x) (%) (%) (%) (%) (%) (%)
---- -------- ---------------- --- --- --- --- --- --- ---
12/10/98 07/14/99 BT Fin Corp. 29.46 37.71 31.04 41.25 49.22 96.85 60.20
12/09/98 06/01/99 M&T Bk Corp. 25.17 22.68 23.18 50.45 79.30 81.79 66.74
12/07/98 07/15/99 Lakeland Bncrp 32.07 28.74 23.61 39.07 39.07 86.00 61.74
11/11/98 05/20/99 Webster Fin Corp. 31.33 20.19 15.28 11.90 17.50 20.90 42.42
11/10/98 03/22/99 F&M National Corp. 40.12 28.20 28.98 50.00 56.82 38.00 64.29
11/04/98 04/22/99 Webster Fin Corp. 23.19 19.97 15.85 33.35 27.00 33.35 94.56
10/06/98 12/30/98 Western Bncrp 13.87 36.01 39.37 7.20 2.02 -6.99 107.82
09/17/98 01/15/99 Commerce Bncrp Inc. 24.62 24.23 20.90 25.00 35.42 16.07 30.00
09/16/98 01/22/99 Eldorado Bncshrs 22.75 22.15 16.50 38.10 33.33 45.91 61.67
08/27/98 03/05/99 BB&T Corp. 27.38 25.49 36.43 48.95 31.82 23.52 44.69
08/25/98 03/31/99 Summit Bncrp 22.80 28.49 24.06 45.16 46.74 43.62 130.77
08/11/98 02/12/99 FirstMerit Corp. 23.40 31.12 49.84 32.89 27.21 17.38 9.44
08/07/98 12/31/98 City Hldng Co. 29.41 39.62 39.37 6.19 13.92 25.87 41.73
07/31/98 12/31/98 Banknorth Group Inc. 26.89 30.40 30.00 24.05 19.48 17.69 91.25
07/28/98 01/22/99 Patriot Bk Corp. 9.90 21.15 10.24 -8.50 -3.51 -6.89 23.42
07/20/98 12/31/98 SunTrust Banks Inc. 28.26 36.72 46.70 31.16 55.98 39.90 94.08
07/16/98 12/31/98 First Commonwealth Financial 30.78 36.36 30.12 61.15 79.06 73.79 106.12
05/28/98 11/20/98 First American Corp. 29.69 29.40 27.34 33.88 41.32 49.63 98.22
05/26/98 09/15/98 First Banks Inc. 10.60 15.74 13.20 -1.80 22.75 84.13 167.82
05/08/98 09/28/98 Mercantile Bncrp. 23.83 29.41 24.36 22.30 25.61 31.84 108.10
04/21/98 10/01/98 Old Kent Fin Corp. 26.68 24.95 18.80 180.23 180.23 180.23 NA
04/17/98 10/23/98 Western Bncrp 20.85 40.23 42.18 22.56 43.16 70.29 188.89
04/14/98 08/31/98 Anchor Fin Corp. 37.09 40.66 45.55 9.31 28.16 51.72 224.59
04/14/98 12/16/98 Susquehanna Bncshrs Inc. 25.25 37.71 31.95 22.94 27.13 46.00 122.47
04/09/98 08/21/98 Star Banc Corp 27.94 32.90 44.76 20.64 38.81 60.57 147.83
04/01/98 08/31/98 Union Planters Corp. 25.30 27.80 23.27 1.19 19.82 20.42 73.21
03/19/98 07/31/98 JeffBanks Inc. 57.10 23.54 24.99 11.46 11.46 11.46 131.19
03/19/98 08/14/98 New England Cmmnty Bncrp 26.72 22.76 20.07 17.11 37.43 53.05 NA
03/15/98 07/01/98 St. Paul Bncrp Inc. 24.00 25.49 19.66 22.32 25.57 25.57 53.01
03/03/98 08/14/98 Hudson United Bncrp 45.14 18.92 13.05 1.12 16.23 42.43 45.45
02/22/98 07/01/98 Union Planters Corp. 27.80 31.64 36.89 31.44 41.66 57.55 95.07
02/19/98 05/30/98 First Security Corp. 31.25 35.56 38.99 20.70 32.02 65.34 148.50
02/13/98 09/11/98 Regions Fin Corp. 21.45 30.26 27.84 0.62 47.84 53.14 149.13
02/09/98 06/30/98 Banco Bilbao Vizcaya Argent SA 15.26 15.01 15.84 12.56 22.82 28.89 20.00
02/02/98 07/01/98 Mercantile Bncrp. 22.68 31.40 29.13 10.41 9.69 32.14 78.53
01/30/98 07/10/98 Mid-State Bncshrs 19.78 24.27 18.37 0.00 -2.75 23.26 64.34
01/26/98 09/14/98 Fulton Fin Corp. 32.21 29.84 29.58 26.51 32.54 61.82 NA
01/15/98 07/01/98 First Midwest Bncrp Inc. 24.15 31.75 31.49 7.80 26.94 41.01 119.83
01/12/98 07/01/98 Mercantile Bncrp. 21.34 26.41 25.68 3.33 16.96 37.42 40.23
01/12/98 03/30/98 National City Corp. 23.39 25.73 28.40 7.40 5.80 23.44 75.41
01/08/98 07/07/98 Union Planters Corp. 22.21 34.31 30.42 124.83 124.83 158.14 NA
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23.89 24.02 22.65 30.09 41.74 48.24 42.62
22.28 23.54 21.59 25.00 34.36 43.26 34.70
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20.60 19.02 16.98 33.88 46.70 48.81 25.84
18.04 19.04 16.34 29.45 40.23 44.86 21.37
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25.14 25.83 24.74 27.11 39.82 46.95 28.95
23.02 25.70 22.98 22.65 35.06 42.73 27.53
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26.42 28.16 26.93 28.77 37.86 49.01 82.01
25.28 28.35 25.99 23.02 32.28 43.03 69.98
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3