Essex Bancorp, Inc.
Common Stock Valuation in Conjunction with
Privatization Strategy
February 1, 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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ESSEX
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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.
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ESSEX
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1
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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ESSEX
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3
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 Considerations
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Common Shareholder Considerations
. 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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5
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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6
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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7
Privatization Transaction Overview
At this point, the privatization transaction structure has been preliminarily
developed. Thus, changes to the overall structure may have an impact on the
common stock valuation considerations and valuation range.
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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 and many issues need to be
examined --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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ESSEX
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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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ESSEX
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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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ESSEX
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Valuation Analysis
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ESSEX
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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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ESSEX
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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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ESSEX
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Peer Group Financial and Market Analysis
Essex Bancorp, Inc. Peer Group Analyses
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
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Mortgage Banking Peer Group (Assets $250 Million-$1Billion, Equity/Assets (less than) 10%, Profitable)
- -------------------------------------------------------------------------------------------------------
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ABBK Abington
Bancorp, Inc. MA 728,418 4.48 0.64 15.21 74.12 86.84 0.04 1.00
CASB Cascade Fin
Corp WA 712,597 5.41 0.58 10.33 69.48 135.66 0.29 0.95
CFCP Coastal Fin
Corp SC 768,838 6.10 1.13 19.52 53.59 127.71 0.79 1.36
COOP Cooperative
Bnkshrs, Inc. NC 414,720 7.40 0.58 7.92 68.60 109.80 0.49 0.60
FDTR Fed Trust Corp FL 240,063 6.39 0.58 8.96 76.68 125.73 1.28 0.69
FKFS First
Keystone Fin,
Inc. PA 463,463 5.73 0.53 9.96 71.69 85.38 0.75 0.87
FFHH FSF Fin Corp. MN 473,905 8.53 0.79 8.73 65.77 110.56 0.39 0.46
LSBI LSB Fin Corp. IN 275,782 7.70 0.79 10.15 64.86 130.52 0.16 0.41
MFLR Mayflower
Co-op Bank MA 158,249 7.32 0.87 12.52 63.83 66.76 0.08 1.36
NASB NASB Fin, Inc. MO 984,525 8.98 1.62 17.69 44.12 133.97 1.65 0.86
------- ---- ---- ----- ----- ------ ---- ----
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Average: 522,056 6.80 0.81 12.10 65.27 111.29 0.59 0.86
Median: 468,684 6.86 0.72 10.24 67.19 118.15 0.44 0.87
------------------------------------------------------------------------------------------------------------
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Regional Peer Group (Assets $250-$500 Million, Equity/Assets (Less than) 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
COOP Cooperative
Bnkshrs, Inc. NC 414,720 7.40 0.58 7.92 68.60 109.80 0.49 0.60
CRSB Crusader Hldg
Corp PA 402,263 8.63 1.96 23.69 27.69 121.13 2.67 1.20
ESBK Elmira SB, FSB NY 275,873 6.12 0.72 12.26 68.92 96.05 0.21 1.03
EQSB Equitable Bank MD 477,048 5.27 0.52 10.05 60.51 109.94 0.05 0.22
FKFS First
Keystone Fin,
Inc. PA 463,463 5.73 0.53 9.96 71.69 85.38 0.75 0.87
HCBB HCB
Bancshares,
Inc. AR 292,246 9.97 0.28 2.91 92.55 94.62 0.31 0.94
IFSB Independence
FSB DC 252,467 9.01 0.56 6.40 83.87 45.79 1.08 0.62
LARL Laurel
Capital
Group, Inc. PA 257,104 9.23 1.41 14.53 44.25 92.55 0.19 1.01
PHFC Pittsburgh
Fin Corp. PA 440,242 4.88 0.11 2.35 79.32 151.31 0.78 0.76
UFBS Union Fin
Bancshares,
Inc SC 259,064 8.46 0.85 10.90 61.14 89.04 0.61 0.81
WSB Washington
SB, FSB MD 270,525 8.82 0.54 6.11 75.05 71.66 0.66 0.78
WVFC WVS Fin Corp. PA 408,910 6.67 1.10 16.18 39.39 110.01 0.99 1.07
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Average: 344,251 7.69 0.74 9.96 65.64 99.96 0.71 0.82
Median: 292,246 8.46 0.56 9.96 68.92 96.05 0.61 0.81
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Ticker Company Name Risk Profile Loan Servicing Data
- ------ ------------ ------------------------- ---------------------------------------------------------
Risk Loans Mtg
Wgtd RWA/ Srvcd For LSFOs/ Srvcng MSRs/
ST Assets Assets Others Assets Rights LSFOs
-- ------ ------ ------- ------ ------ ------
($000) (%) ($000) (%) (000) (%)
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ESX Essex
Bancorp, Inc. VA 173,821 59.34% 1,661,637 567.23% 2,069 0.12%
- ------------------------------------------------------------------------------------------------------------
ABBK Abington
Bancorp, Inc. MA 389,964 53.54% 109,020 14.97% 0 0.00%
CASB Cascade Fin
Corp WA 476,293 66.84% 105,406 14.79% 856 0.81%
CFCP Coastal Fin
Corp SC 448,700 58.36% 106,147 13.81% 0 0.00%
COOP Cooperative
Bnkshrs, Inc. NC 269,427 64.97% 76,442 18.43% 0 0.00%
FDTR Fed Trust Corp FL 143,832 59.91% 146,128 60.87% 1,400 0.96%
FKFS First
Keystone Fin,
Inc. PA 22,281 47.96% 70,390 15.19% 94 0.13%
FFHH FSF Fin Corp. MN NA NA 52,104 10.99% 198 0.38%
LSBI LSB Fin Corp. IN 189,086 68.56% 60,750 22.03% 451 0.74%
MFLR Mayflower 111,188 70.26% 51,952 32.83% 279 0.54%
Co-op Bank MA
NASB NASB Fin, Inc. MO 728,067 73.95% 706,668 71.78% 14,851 2.10%
------- ------- ------- ------- ------- ------
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Average: 330,982 62.71% 148,501 27.57% 1,813 0.57%
Median: 269,427 64.97% 90,924 16.81% 239 0.46%
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CFFC Community Fin
Corp VA 199,863 76.48% 4,980 1.91% 4 0.08%
COOP Cooperative
Bnkshrs, Inc. NC 269,427 64.97% 76,442 18.43% 0 0.00%
CRSB Crusader Hldg
Corp PA 275,599 68.51% 0 0.00% 0 0.00%
ESBK Elmira SB, FSB NY 182,207 66.05% 45,376 16.45% 0 0.00%
EQSB Equitable Bank MD NA NA NA NA 0 NA
FKFS First Keystone
Fin, Inc. PA 222,281 47.96% 70,390 15.19% 94 0.13%
HCBB HCB
Bancshares,
Inc. AR NA NA% 0 0.00% 0 0.00%
IFSB Independence
FSB DC 89,077 35.28% NA NA 0 NA
LARL Laurel
Capital
Group, Inc. PA 144,397 56.16% 475 0.18% 0 0.00%
PHFC Pittsburgh
Fin Corp. PA NA NA NA NA 0 NA
UFBS Union Fin
Bancshares,
Inc SC 137,388 53.03% 47,133 18.19% 452 0.96%
WSB Washington
SB, FSB MD 110,388 40.71% 5,821 2.15% 0 0.00%
WVFC WVS Fin Corp. PA 192,746 47.14% 1,986 0.49% 0 0.00%
------- ------ ----- ----- -- -----
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Average: 182,310 55.63% 25,260 7.30% 42 0.12%
Median: 187,477 54.60% 5.401 2.03% 0 0.00%
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Market Pricing Analysis
--------------------
Market Price/ LTM Price/ Price/ Current Dividend
---------------------
ST Value Earnings Book Assets Yield Payout Ratio
-- ------ ------- ---- ------ ------ ------------
($M) (x) (%) (%) (%) (%)
- ---------------------------------------------------------------------------------------------------------------
ESX Essex 1.46 NM NM 0.52 0.00 NM
Bancorp, Inc. VA
- ---------------------------------------------------------------------------------------------------------------
ABBK Abington 38.54 8.91 117.96 5.29 2.87 23.36
Bancorp, Inc. MA
CASB Cascade Fin 42.33 11.73 109.71 5.94 0.00 0.00
Corp WA
CFCP Coastal Fin
Corp SC 78.34 9.19 166.93 10.19 2.42 22.89
COOP Cooperative
Bnkshrs, Inc. NC 28.33 15.13 92.29 6.83 1.92 17.65
FDTR Fed Trust Corp FL 12.37 10.00 80.65 5.15 0.00 0.00
FKFS First
Keystone Fin,
Inc. PA 24.49 9.80 92.16 5.28 2.94 25.23
FFHH FSF Fin Corp. MN 34.49 9.54 79.52 7.28 4.19 35.00
LSBI LSB Fin Corp. IN 17.56 8.20 79.10 6.37 2.85 22.73
MFLR Mayflower MA 14.93 11.75 128.75 9.44 5.43 63.83
Co-op Bank
NASB NASB Fin, Inc. MO 107.32 7.75 128.30 10.90 2.96 23.31
------ ---- ------ ----- ---- -----
------------------------------------------------------------------------------------------------------
Average: 39.87 10.20 107.54 7.27 2.66 23.40
Median: 31.41 9.67 101.00 6.60 2.86 23.10
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CFFC Community Fin
Corp VA 23.13 18.27 91.00 8.88 3.37 61.54
COOP Cooperative
Bnkshrs, Inc. NC 28.33 15.13 92.29 6.83 1.92 17.65
CRSB Crusader Hldg
Corp PA 26.53 3.62 76.39 6.59 0.00 0.00
ESBK Elmira SB, FSB NY 18.80 9.33 110.74 6.82 2.72 25.72
EQSB Equitable Bank MD 26.51 11.32 105.90 5.56 0.00 0.00
FKFS First
Keystone Fin,
Inc. PA 24.49 9.80 92.16 5.28 2.94 25.23
HCBB HCB
Bancshares,
Inc. AR 16.43 19.94 58.69 5.85 2.87 57.14
IFSB Independence
FSB DC 15.24 10.51 66.98 6.04 2.36 60.18
LARL Laurel
Capital
Group, Inc. PA 30.34 9.63 128.21 11.83 4.39 40.37
PHFC Pittsburgh
Fin Corp. PA 16.13 30.65 71.48 3.66 3.79 116.13
UFBS Union Fin
Bancshares,
Inc SC 17.35 8.09 79.01 6.69 4.41 33.31
WSB Washington
SB, FSB MD 18.28 10.26 76.63 6.76 2.50 32.26
WVFC WVS Fin Corp. PA 34.80 8.32 128.53 8.57 5.20 43.24
------ ---- ------ ----- ---- -----
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Average: 22.80 12.68 90.62 6.87 2.81 39.44
Median: 23.13 10.26 91.00 6.69 2.87 33.31
----------------------------------------------------------------------------------------------------
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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15
Peer Group Pricing Analysis (Going Concern Basis)
Peer Group Pricing Analysis
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 (x) 9.67x ($1.44) 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%
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Regional Peer Group (Assets $250-$500 Million, Equity/Assets (Less than) 10%, Profitable)
-----------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
Earnings Approach (x) 10.26x ($1.44) 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. Book value per share
and assets per share adjusted for preferred stock par value + accumulated
dividends.
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ESSEX
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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
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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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Peer Group Pricing Analysis (Sale of Control)
Comparable Transactions Pricing Analysis
Essex Indicated
Comparable Essex 12/31/00 Comparative Value
Transactions Per Common Pricing Per Approach
Pricing Ratios Share Data (1) Adjustment Share Weighting
-------------- -------------- ---------- ----- ---------
- ----------------------------------------------------------------------------------------------------------
Thrift Acquisitions 1998 to Present (Excludes Strategic Mergers and Acqusitions of Mutual Holding Cos.)
==========================================================================================================
Earnings Approach 23.28x ($1.44) NM $ 0.00 55.00%
Book Value Approach 151.07% ($2.34) NM $ 0.00 30.00%
Deposit Premium + Equity Approach 11.55% $207.59 80% (2) $ 16.84 (3) 15.00%
------- ------
Weighted Average $ 2.53 100.00%
- ----------------------------------------------------------------------------------------------------------
Thrift Acquisitions 2000 to Present (Excludes Strategic Mergers and Acqusitions of Mutual Holding Cos.)
==========================================================================================================
Earnings Approach 18.62x ($1.44) NM $ 0.00 55.00%
Book Value Approach 124.07% ($2.34) NM $ 0.00 30.00%
Deposit Premium + Equity Approach 6.23% $207.59 80% (2) $ 8.01 (3) 15.00%
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Weighted Average $ 1.20 100.00%
(1) Earnings per common share excludes $3.3 million deferred tax asset
recognition pertaining to NOLs and preferred dividends. 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.
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ESSEX 19
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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
2. Other going private transactions of banks and thrifts
3. "Dutch tender auction" transactions of 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 banks and thrifts
. 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
. 3. "Dutch tender auction" transactions of 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 21
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Premium Paid Analysis:
1. Control Premiums Paid In Bank/Thrift M&A
[LOGO]
- -----
ESSEX
- -----
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
. 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
. Average 29.86%
. Median 23.75%
. Thrift acquisitions
. Average 32.31%
. Median 36.89%
[LOGO]
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ESSEX 23
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Premium Paid Analysis:
2. Premiums Paid In Going Private Transactions
[LOGO]
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ESSEX
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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 Bankcorp, Inc., Fort Lauderdale, Florida
. 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 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 25
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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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26
Premium Paid Analysis:
3. Premiums Paid In Dutch Tender Auctions
[LOGO]
- ------ PRELIMINARY, SUBJECT TO CHANGE RP
ESSEX
- ------
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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28
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
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ESSEX 30
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Application of Common Stock Valuation Techniques
to Essex Bancorp, Inc.
[LOGO] PRELIMINARY, SUBJECT TO CHANGE
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ESSEX
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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 and thrifts
. In applying the wide range of premiums paid in the limited number
of other "going private" transactions of public banks and thrifts,
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] PRELIMINARY, SUBJECT TO CHANGE
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ESSEX 32
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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 Rolling Average
[GRAPH APPEARS HERE]
Current Price $1.40
22 Day Rolling Average $1.19
[LOGO] PRELIMINARY, SUBJECT TO CHANGE
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ESSEX 33
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Application of Common Stock Valuation Techniques
to Essex Bancorp, Inc.
Application of Premium Analyses to Essex Bancorp
Indicated Privatization Premium
Essex --------------------------------------
Base Stock Indicated Indicated
Indicated Price Per Premium Stock Aggregate
Premium Share (1) Per Share Price Proceeds (2)
------- --------- ---------- --------- ------------
($000)
Valuation Technique
- -------------------
Acquisition of Publicly Traded Banks & Thrifts 1998-Present
Publicly Traded Banks (Median) 23.75% $ 1.19 $ 0.28 $ 1.47 $ 1,562
Publicly Traded Thrifts (Median) 26.89% $ 1.19 $ 0.32 $ 1.51 $ 1,601
Other "Going Private" Transactions of 17.10% $ 1.19 $ 0.20 $ 1.39 $ 1,478
Publicly-Traded Banks & Thrifts 1998-Present (Median)
"Dutch Tender Auction" Transactions of 14.59% $ 1.19 $ 0.17 $ 1.36 $ 1,446
Publicly-Traded Banks & Thrifts 1998-Present (Median)
- --------------------------------------------------------------------------------------------------------------------------------
Valuation Range
- ---------------
Upper Value 22.50% $ 1.19 $ 0.27 $ 1.46 $ 1,546
Lower Value 17.50% $ 1.19 $ 0.21 $ 1.40 $ 1,483
- ---------------------------------------------------------------------------------------------------------------------------------
Notes:
- -----
(1) Reflects 22 day rolling average
(2) Common shares outstanding currently (000) 1,061
[LOGO] PREMILINARY SUBJECT TO CHANGE
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ESSEX 34
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modified dutch auction.xls
RP Financial, LC.
- -----------------
Financial Services Industry Consultants
Modified Dutch Auction By Banks and Thrifts 1998 to Present
Pre- Tender Offer Initial Tender Offer
--------------------
Market Anncmnt Period # of %-
-------------------
Institution Ticker Assets(1) Cap. (1) Price Opened Closed Shares Outst.
- ----------- ------ --------- -------- ----- ------ ------ ------ -----
($Mil) ($Mil) ($) (%)
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 $44.25 01/20/98 02/20/98 1,500,000 30.00%
------
Average 18.33%
Median 19.85%
Tender Offer Results Offer Price Range Offer Price Premium to
-------------------- ------------------------ ------------------------
# of % of Low High Final Low High Final
Institution Shares Outst. Price Price Price Price Price Price
- ----------- ------ ------ ----- ----- ----- ----- ----- -----
(%) ($) ($) ($) (%) (%) (%)
Souside Bankshares-MO NA 0.00% $10.75 $12.00 NA 17.81% 31.51% NA
Citizens First Fin. Corp.-IL 391,096 20.00% $15.00 $17.00 $16.00 7.14% 21.43% 14.29%
Promistar Fin Corp (BT Financial)-PA 1,730,013 10.37% $18.00 $20.00 $19.50 9.09% 21.21% 18.18%
NASB Financial, Inc.-MO 517,265 5.73% $12.50 $12.50 $12.50 17.65% 17.65% 17.65%
PS Financial, Inc.-IL 367,244 22.00% $12.00 $14.50 $12.00 3.81% 25.43% 3.81%
Hemlock Federal Fin. Corp-IL 419,947 25.95% $15.00 $17.50 $15.00 4.80% 22.27% 4.80%
First Southern Bancshares-AL 307,871 18.73% $12.75 $14.00 $13.50 8.51% 19.15% 14.89%
First Commonwealth Fin Corp-PA 1,909,710 6.16% $23.00 $26.00 $26.00 -2.65% 10.05% 10.05%
GBC Bancorp-CA 1,327,579 10.35% $18.00 $22.00 $22.00 0.00% 22.22% 22.22%
Bancfirst Corp-OK 1,186,502 12.73% $34.00 $38.00 $38.00 21.43% 35.71% 35.71%
EFC Bancorp, Inc.-IL 1,709,544 24.02% $10.00 $12.00 $12.00 -1.23% 18.52% 18.52%
First Banks America, Inc.-MO 314,848 9.78% $16.50 $21.00 $21.00 -1.84% 24.93% 24.93%
Peekskill Financial Corp.-NY 800,040 28.15% $14.75 $16.75 $16.75 7.27% 21.82% 21.82%
WesterFed Financial Corp.-MT 1,082,854 19.38% $18.00 $20.00 $20.00 -7.69% 2.56% 2.56%
Tri-County Bancorp, Inc.-WY 313,000 26.81% $11.00 $14.00 $14.00 -2.22% 24.44% 24.44%
Klamath First Bancorp, Inc.-OR 1,983,353 20.00% $18.00 $20.00 $19.50 0.70% 11.89% 9.09%
Mississippi View Holding Co.-MN 268,351 36.40% $19.50 $21.50 $21.25 4.73% 15.47% 14.12%
S&T Bancorp-PA 439,606 3.11% $46.00 $49.00 $49.00 3.95% 10.73% 10.73%
------ ------ ------ ------
Average 16.65% 5.07% 19.83% 15.75%
Mean 19.05% 4.34% 21.32% 14.59%
Final Pre-Tender
Pr/High Shares
Institution Price Outstanding
- ----------- ----- -----------
(%)
Souside Bankshares-MO NA 8,393,528
Citizens First Fin. Corp.-IL 94.12% 1,955,014
Promistar Fin Corp (BT Financial)-PA 97.50% 16,683,294
NASB Financial, Inc.-MO 100.00% 9,021,914
PS Financial, Inc.-IL 82.76% 1,669,290
Hemlock Federal Fin. Corp-IL 85.71% 1,618,563
First Southern Bancshares-AL 96.43% 1,643,562
First Commonwealth Fin Corp-PA 100.00% 30,991,646
GBC Bancorp-CA 100.00% 12,821,198
Bancfirst Corp-OK 100.00% 9,321,295
EFC Bancorp, Inc.-IL 100.00% 7,116,934
First Banks America, Inc.-MO 100.00% 3,220,830
Peekskill Financial Corp.-NY 100.00% 2,842,069
WesterFed Financial Corp.-MT 100.00% 5,588,862
Tri-County Bancorp, Inc.-WY 100.00% 1,167,498
Klamath First Bancorp,Inc.-OR 97.50% 9,916,766
Mississippi View Holding Co.-MN 98.84% 737,228
S&T Bancorp-PA 100.00% 14,143,655
-------
Average 97.23%
Mean 100.00%
(1) Pre-tender.
Source: Corporate securities filings and press releases
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
Target Financials at
-------------------------------
Total Equity/
Announce Complete Assets Assets ROAA
Date Date Buyer Short Name ST Target Name ST ($000) (%) (%)
---- -------- ---------------- -- ----------- -- ------ --- ---
12/27/2000 Pending Fulton Fin Corp. PA Drovers Bncshrs Corp PA 755,308 7.13 0.63
12/18/2000 Pending F.N.B. Corp. PA Citizens Cmmnty Bncrp, Inc. FL 154,419 11.45 0.67
12/14/2000 Pending Zions Bncrp. UT Eldorado Bncshrs, Inc. CA 1,262,391 9.92 0.65
12/11/2000 Pending SouthTrust Corp. AL Bay Bncshrs Inc. TX 332,723 8.60 1.00
12/05/2000 Pending BB&T Corp. NC Century South Banks, Inc. GA 1,614,497 9.66 1.33
11/29/2000 Pending Cmmnty Bk System Inc. NY First Liberty Bk Corp. PA 646,661 9.30 0.78
11/21/2000 Pending Park National Corp. OH Security Banc Corp OH 986,529 12.42 1.76
11/20/2000 Pending Fifth Third Bncrp OH Old Kent Fin Corp MI 22,518,600 7.11 1.21
11/02/2000 Pending Financial Institutions Inc. NY Bath National Corp. NY 287,343 9.66 0.24
11/02/2000 Pending PBOC Hldngs Inc. CA BYL Bncrp CA 322,320 9.01 0.10
11/01/2000 Pending Comerica Inc. MI Imperial Bncrp CA 7,441,954 6.79 1.30
10/30/2000 Pending Wachovia Corp. NC Republic Security Fin Corp FL 3,396,980 6.09 0.71
10/25/2000 Pending Fifth Third Bncrp OH Capital Hldngs Inc. OH 1,084,667 8.72 1.12
10/17/2000 Pending PremierWest Bncrp OR Timberline Bncshrs, Inc CA 92,422 8.62 0.90
10/11/2000 Pending Century Bncshrs Inc. DC GrandBanc, Inc. MD 114,122 5.14 0.12
10/04/2000 Pending Firstar Corp. WI U.S. Bncrp MN 86,174,000 9.20 1.86
10/02/2000 Pending FleetBoston Fin Corp. MA Summit Bncrp NJ 38,985,132 7.54 1.36
09/20/2000 Pending Humboldt Bncrp CA Tehama Bncrp CA 233,392 8.62 1.27
09/19/2000 Pending Synovus Fin Corp. GA Carolina Southern Bank SC 212,410 10.97 1.23
09/13/2000 12/31/2000 Chase Manhattan Corp. NY J.P. Morgan & Co, Inc NY 266,323,000 4.41 0.88
09/06/2000 Pending Valley National Bncrp NJ Merchants NY Bncrp, Inc. NY 1,369,676 7.06 1.61
08/24/2000 12/29/2000 First Banks Inc. MO Millennium Bank CA 104,507 10.47 1.37
08/23/2000 12/27/2000 BB&T Corp. NC BankFirst Corp TN 848,807 10.36 1.06
08/21/2000 01/11/2001 BOK Fin Corp. OK CNBT Bncshrs, Inc. TX 423,820 7.67 1.22
08/07/2000 Pending First Cmmnty Bncrp CA Professional Bncrp Inc. CA 287,771 5.10 0.02
07/27/2000 01/08/2001 BB&T Corp. NC FCNB Corp. MD 1,593,067 5.58 0.92
07/24/2000 01/03/2001 National Penn Bncshrs Inc. PA Cmmnty Independent Bank, Inc. PA 108,529 6.72 0.41
07/11/2000 Pending FNB Corp. VA CNB Hldngs, Inc. VA 51,084 11.63 1.04
07/10/2000 Pending M&T Bk Corp. NY Premier National Bncrp Inc. NY 1,570,131 8.81 1.34
07/06/2000 Pending F&M National Corp. VA Atlantic Fin Corp VA 385,473 11.26 1.19
06/27/2000 10/13/2000 U.S. Bncrp MN Scripps Fin Corp CA 643,322 7.27 1.15
05/17/2000 10/06/2000 M&T Bk Corp. NY Keystone Fin, Inc. PA 7,012,346 7.93 1.13
04/25/2000 07/01/2000 Cowlitz Bncrp. WA Northern Bk of Commerce OR 55,262 6.18 -1.92
04/18/2000 09/05/2000 Cardinal Fin Corp. VA Heritage Bncrp Inc. VA 59,939 14.34 0.30
04/17/2000 08/31/2000 BncrpSouth Inc. MS First United Bncshrs, Inc. AR 2,666,047 9.74 1.30
04/10/2000 10/25/2000 Wells Fargo & Co. CA First Security Corp UT 22,992,927 7.70 1.22
03/27/2000 11/06/2000 Niagara Bncrp Inc. (MHC) NY Iroquois Bncrp, Inc. NY 595,126 6.53 0.81
03/21/2000 10/13/2000 Greater Bay Bncrp CA Bank of Petaluma CA 189,629 7.74 1.16
03/01/2000 08/10/2000 State National Bancshrs, Inc TX Independent Bnkshrs, Inc. TX 357,488 7.00 0.70
02/23/2000 08/01/2000 Fulton Fin Corp. PA Skylands Fin Corp NJ 214,334 7.04 1.15
02/07/2000 07/06/2000 BB&T Corp. NC One Valley Bncrp, Inc. WV 6,583,061 8.49 1.30
02/07/2000 06/23/2000 Huntington Bncshrs Inc. OH Empire Banc Corp MI 505,896 8.47 1.41
02/03/2000 07/31/2000 Pacific Capital Bncrp CA San Benito Bank CA 200,005 8.78 1.22
02/02/2000 06/16/2000 Wells Fargo & Co. CA First Commerce Bncshrs, Inc. NE 2,545,612 9.82 1.40
01/27/2000 07/21/2000 Greater Bay Bncrp CA Bank of Santa Clara CA 328,588 9.13 1.31
01/26/2000 07/27/2000 Sterling Fin Corp. PA Hanover Bncrp, Inc. PA 509,882 6.64 0.93
01/21/2000 07/14/2000 Mercantile Bnkshrs Corp. MD Union National Bncrp, Inc MD 308,629 8.18 1.04
01/10/2000 06/06/2000 Carolina First Corp SC Anchor Fin Corp SC 1,223,777 7.23 1.15
12/27/1999 05/19/2000 Bank of the Sierra CA Sierra National Bank CA 90,545 5.57 0.48
12/21/1999 07/17/2000 Wells Fargo & Co. CA National Bncrp of Alaska, Inc. AK 3,060,429 14.54 2.28
12/15/1999 06/15/2000 BB&T Corp. NC First Banking Co of SE GA GA 419,109 13.05 1.54
12/14/1999 05/18/2000 Greater Bay Bncrp CA Coast Bncrp CA 350,088 9.12 2.05
12/08/1999 07/01/2000 NBT Bncrp Inc. NY Pioneer American Hldng Co Corp PA 421,854 7.56 0.96
12/02/1999 03/31/2000 Cmmnty National Bncrp TN Cmmnty National Corp TN 39,806 21.62 0.94
11/08/1999 04/04/2000 First Charter Corp. NC Carolina First Bncshrs, Inc. NC 762,687 8.34 1.22
10/04/1999 10/11/2000 North Valley Bncrp CA Six Rivers National Bank CA 199,983 9.31 0.57
10/04/1999 03/29/2000 Summit Bncrp NJ NMBT CORP CT 391,930 7.20 0.88
Announcement Deal Terms and Pricing at Announcement
-----------------------------------------------------------------------------
NPAs/ Rsrvs/ Deal Price/
Announce Complete ROAE Assets NPLs Value Share P/B P/TB P/E
Date Date Buyer Short Name (%) (%) (%) ($M) ($) Consid. (%) (%) (x)
---- ---- ---------------- --- --- --- ---- --- ------- --- --- ---
12/27/2000 Pending Fulton Fin Corp. 9.03 0.28 210.83 146.6 28.44 Stock 267.82 268.08 25.86
12/18/2000 Pending F.N.B. Corp. 4.98 0.13 NA 38.6 11.00 Stock 210.33 210.33 45.83
12/14/2000 Pending Zions Bncrp. 6.99 0.79 109.18 204.0 13.69 Stock 154.46 279.29 NM
12/11/2000 Pending SouthTrust Corp. 12.00 NA 0.00 53.0 26.42 Cash 181.96 235.68 16.51
12/05/2000 Pending BB&T Corp. 13.95 0.52 258.60 426.5 30.81 Stock 271.18 290.62 22.99
11/29/2000 Pending Cmmnty Bk System Inc. 8.56 0.24 515.29 87.1 13.61 Stock 143.98 NA 17.67
11/21/2000 Pending Park National Corp. 14.45 0.64 137.87 307.2 25.99 Stock 250.12 274.70 18.05
11/20/2000 Pending Fifth Third Bncrp 17.28 0.40 284.38 4,961.8 35.57 Mixed 302.63 330.54 18.42
11/02/2000 Pending Financial Institutions Inc. 2.39 1.03 61.64 62.6 48.00 Cash 225.56 227.38 45.28
11/02/2000 Pending PBOC Hldngs Inc. 1.15 1.16 90.56 38.9 15.00 Cash 131.12 137.11 18.07
11/01/2000 Pending Comerica Inc. 16.85 0.90 136.18 1,289.4 27.74 Stock 240.42 NA 12.73
10/30/2000 Pending Wachovia Corp. 11.89 0.30 246.54 342.9 7.00 Stock 165.09 184.70 13.46
10/25/2000 Pending Fifth Third Bncrp 13.09 NA NA 245.4 32.82 Stock 244.36 244.36 20.77
10/17/2000 Pending PremierWest Bncrp 10.61 NA 0.00 14.0 13.50 Mixed 170.67 170.67 15.34
10/11/2000 Pending Century Bncshrs Inc. 2.12 0.10 0.00 11.2 2.17 Mixed 148.04 176.17 NM
10/04/2000 Pending Firstar Corp. 19.82 0.47 284.61 21,237.1 28.15 Stock 266.16 443.25 13.77
10/02/2000 Pending FleetBoston Fin Corp. 17.74 0.31 NA 6,990.7 39.78 Stock 235.66 291.86 15.18
09/20/2000 Pending Humboldt Bncrp 14.39 0.28 485.51 40.2 20.41 Stock 191.31 196.47 14.38
09/19/2000 Pending Synovus Fin Corp. 11.18 0.30 276.90 64.1 17.29 Stock 272.36 272.36 23.37
09/13/2000 12/31/2000 Chase Manhattan Corp. 20.42 0.05 NA 34,422.7 95.18 Mixed 321.22 343.50 17.55
09/06/2000 Pending Valley National Bncrp 22.74 0.07 NA 375.9 20.04 Stock 387.60 389.11 18.05
08/24/2000 12/29/2000 First Banks Inc. 13.07 0.95 417.05 20.8 8.10 Cash 171.25 171.25 16.20
08/23/2000 12/27/2000 BB&T Corp. 10.25 0.61 190.28 147.9 12.21 Stock 155.75 159.00 16.07
08/21/2000 01/11/2001 BOK Fin Corp. 16.00 0.08 NA 91.4 18.22 Cash 276.90 276.90 17.69
08/07/2000 Pending First Cmmnty Bncrp 0.30 3.43 70.66 16.3 8.04 Mixed 111.19 111.19 NM
07/27/2000 01/08/2001 BB&T Corp. 16.35 0.52 138.24 216.7 18.13 Stock 243.29 259.67 19.49
07/24/2000 01/03/2001 National Penn Bncshrs Inc. 6.03 2.38 49.44 14.0 19.69 Stock 188.76 188.76 57.91
07/11/2000 Pending FNB Corp. 8.96 NA 190.96 10.1 10.60 Mixed 165.37 NA 55.79
07/10/2000 Pending M&T Bk Corp. 15.26 0.62 256.99 343.2 21.00 Mixed 242.77 250.90 16.54
07/06/2000 Pending F&M National Corp. 10.57 0.39 204.78 71.7 16.85 Stock 162.16 165.99 17.55
06/27/2000 10/13/2000 U.S. Bncrp 15.81 0.60 162.15 155.5 22.01 Stock 325.55 325.55 32.85
05/17/2000 10/06/2000 M&T Bk Corp. 14.28 0.56 168.90 1,026.7 21.01 Mixed 184.49 204.01 21.23
04/25/2000 07/01/2000 Cowlitz Bncrp. -27.56 1.05 285.57 4.1 3.35 Cash 120.50 120.50 NM
04/18/2000 09/05/2000 Cardinal Fin Corp. 2.06 0.00 NA 13.9 6.00 Mixed 160.00 160.00 NM
04/17/2000 08/31/2000 BncrpSouth Inc. 12.80 0.47 202.20 455.7 18.00 Stock 175.27 186.72 13.64
04/10/2000 10/25/2000 Wells Fargo & Co. 16.18 0.29 294.57 2,778.3 14.11 Stock 156.27 196.81 10.23
03/27/2000 11/06/2000 Niagara Bncrp Inc. (MHC) 12.07 0.54 118.48 80.3 33.25 Cash 195.59 203.36 16.96
03/21/2000 10/13/2000 Greater Bay Bncrp 15.22 0.14 NA 39.9 26.03 Stock 254.95 256.20 16.90
03/01/2000 08/10/2000 State National Bancshrs, Inc 10.19 0.20 NA 45.5 20.00 Cash 180.67 309.12 18.02
02/23/2000 08/01/2000 Fulton Fin Corp. 15.92 0.82 131.46 33.2 12.58 Stock 208.94 230.37 14.63
02/07/2000 07/06/2000 BB&T Corp. 14.15 0.18 527.89 1,202.2 35.20 Stock 210.53 230.82 14.85
02/07/2000 06/23/2000 Huntington Bncshrs Inc. 16.31 0.60 213.59 138.7 43.25 Stock 303.96 306.11 19.75
02/03/2000 07/31/2000 Pacific Capital Bncrp 13.24 0.14 492.33 53.7 18.04 Stock 289.98 291.39 23.42
02/02/2000 06/16/2000 Wells Fargo & Co. 12.91 NA NA 479.7 35.95 Stock 191.73 197.20 16.19
01/27/2000 07/21/2000 Greater Bay Bncrp 14.42 0.05 NA 89.5 36.65 Stock 282.79 282.79 20.82
01/26/2000 07/27/2000 Sterling Fin Corp. 12.88 0.11 NA 97.1 24.76 Stock 285.92 285.92 21.16
01/21/2000 07/14/2000 Mercantile Bnkshrs Corp. 13.04 0.09 NA 66.6 33.57 Stock 261.01 286.16 19.98
01/10/2000 06/06/2000 Carolina First Corp 15.23 0.29 345.16 303.7 35.89 Stock 327.15 329.55 21.62
12/27/1999 05/19/2000 Bank of the Sierra 8.77 2.03 22.08 9.1 11.43 Cash 180.31 192.35 NM
12/21/1999 07/17/2000 Wells Fargo & Co. 15.42 0.29 346.18 1,098.7 36.36 Stock 246.99 250.05 17.82
12/15/1999 06/15/2000 BB&T Corp. 12.57 0.58 233.75 122.1 21.83 Stock 223.21 NA 18.66
12/14/1999 05/18/2000 Greater Bay Bncrp 21.35 0.52 NA 135.6 27.17 Stock 408.51 408.51 20.43
12/08/1999 07/01/2000 NBT Bncrp Inc. 11.61 0.91 109.25 84.8 29.33 Stock 263.29 268.11 20.95
12/02/1999 03/31/2000 Cmmnty National Bncrp 4.23 0.07 NA 6.8 14.75 Cash 122.20 122.20 36.88
11/08/1999 04/04/2000 First Charter Corp. 14.11 0.29 358.93 263.2 42.51 Stock 401.00 439.57 32.95
10/04/1999 10/11/2000 North Valley Bncrp 6.23 1.95 81.72 24.0 16.04 Stock 126.01 169.03 NM
10/04/1999 03/29/2000 Summit Bncrp 11.64 0.55 213.07 76.1 26.00 Stock 245.75 247.15 21.31
Control Premium
-------------------------------------------------------------
Prem/ Relative to Previous Trading Price
-----------------------------------------
Announce Complete P/A Deps 1 Day 1 Month 3 Month 1 Year
Date Date Buyer Short Name (%) (%) (%) (%) (%) (%)
---- ---- ---------------- --- --- --- --- --- ---
12/27/2000 Pending Fulton Fin Corp. 19.41 18.27 44.02 97.86 92.83 46.58
12/18/2000 Pending F.N.B. Corp. 25.00 20.27 100.00 46.67 45.45 25.71
12/14/2000 Pending Zions Bncrp. 16.16 14.26 54.20 73.78 62.19 30.33
12/11/2000 Pending SouthTrust Corp. 15.93 11.80 20.09 14.87 65.13 42.81
12/05/2000 Pending BB&T Corp. 26.42 25.41 26.71 62.14 49.36 36.92
11/29/2000 Pending Cmmnty Bk System Inc. 13.47 NA 2.69 23.69 19.61 -24.41
11/21/2000 Pending Park National Corp. 31.14 29.49 44.37 42.39 42.39 -10.77
11/20/2000 Pending Fifth Third Bncrp 21.65 25.44 42.27 39.48 20.82 -8.07
11/02/2000 Pending Financial Institutions Inc. 21.79 18.18 29.73 29.73 4.35 -4.95
11/02/2000 Pending PBOC Hldngs Inc. 12.07 4.43 48.15 27.66 66.67 28.34
11/01/2000 Pending Comerica Inc. 17.33 NA 14.11 45.07 62.01 21.37
10/30/2000 Pending Wachovia Corp. 10.09 8.75 17.89 41.77 72.31 -17.04
10/25/2000 Pending Fifth Third Bncrp 22.62 28.35 29.97 29.17 28.69 3.36
10/17/2000 Pending PremierWest Bncrp 15.15 7.86 42.11 68.75 107.69 22.73
10/11/2000 Pending Century Bncshrs Inc. 7.60 4.42 92.62 57.60 28.41 -3.69
10/04/2000 Pending Firstar Corp. 24.45 34.77 21.38 30.53 42.96 -11.53
10/02/2000 Pending FleetBoston Fin Corp. 17.93 19.06 15.72 44.98 61.54 23.59
09/20/2000 Pending Humboldt Bncrp 17.22 10.98 20.08 19.20 43.25 116.43
09/19/2000 Pending Synovus Fin Corp. 30.18 27.27 28.10 57.22 33.03 19.07
09/13/2000 12/31/2000 Chase Manhattan Corp. 12.66 49.93 5.75 35.66 50.64 56.37
09/06/2000 Pending Valley National Bncrp 27.44 42.62 14.51 17.02 17.44 10.18
08/24/2000 12/29/2000 First Banks Inc. 19.90 14.25 15.71 149.23 140.00 109.03
08/23/2000 12/27/2000 BB&T Corp. 17.42 11.27 9.76 29.39 52.64 35.21
08/21/2000 01/11/2001 BOK Fin Corp. 21.57 19.81 10.42 17.55 47.23 54.24
08/07/2000 Pending First Cmmnty Bncrp 5.66 0.70 110.86 114.37 89.15 -61.26
07/27/2000 01/08/2001 BB&T Corp. 13.60 14.67 -8.81 20.83 25.00 -15.70
07/24/2000 01/03/2001 National Penn Bncshrs Inc. 12.90 8.13 96.88 101.93 123.41 70.27
07/11/2000 Pending FNB Corp. 19.97 NA 32.50 NA NA 16.16
07/10/2000 Pending M&T Bk Corp. 21.86 18.32 57.01 61.54 61.54 14.07
07/06/2000 Pending F&M National Corp. 18.60 9.82 22.53 25.97 52.30 -5.75
06/27/2000 10/13/2000 U.S. Bncrp 24.17 20.32 29.45 76.06 89.31 46.71
05/17/2000 10/06/2000 M&T Bk Corp. 14.64 11.32 33.42 22.70 22.26 -33.95
04/25/2000 07/01/2000 Cowlitz Bncrp. 7.43 1.49 57.65 34.00 7.20 -44.17
04/18/2000 09/05/2000 Cardinal Fin Corp. 23.19 12.26 60.00 65.52 60.00 47.69
04/17/2000 08/31/2000 BncrpSouth Inc. 17.09 11.94 42.57 61.80 29.73 5.11
04/10/2000 10/25/2000 Wells Fargo & Co. 12.08 11.51 15.78 16.98 -38.65 -21.33
03/27/2000 11/06/2000 Niagara Bncrp Inc. (MHC) 13.49 11.09 86.01 144.04 121.67 54.65
03/21/2000 10/13/2000 Greater Bay Bncrp 21.04 16.69 11.36 0.84 13.79 22.49
03/01/2000 08/10/2000 State National Bancshrs, Inc 12.73 11.43 21.21 54.59 31.15 75.82
02/23/2000 08/01/2000 Fulton Fin Corp. 15.49 10.85 22.71 13.06 7.05 20.06
02/07/2000 07/06/2000 BB&T Corp. 18.26 16.53 30.07 20.34 -3.89 15.41
02/07/2000 06/23/2000 Huntington Bncshrs Inc. 27.42 23.46 39.53 51.77 43.58 8.82
02/03/2000 07/31/2000 Pacific Capital Bncrp 26.85 26.42 -31.29 -26.00 -26.38 -9.82
02/02/2000 06/16/2000 Wells Fargo & Co. 18.84 16.34 8.94 40.98 71.19 28.39
01/27/2000 07/21/2000 Greater Bay Bncrp 27.24 24.19 6.62 9.40 16.35 76.62
01/26/2000 07/27/2000 Sterling Fin Corp. 19.04 16.74 70.77 61.05 65.07 42.51
01/21/2000 07/14/2000 Mercantile Bnkshrs Corp. 21.58 21.59 23.60 22.06 18.82 11.89
01/10/2000 06/06/2000 Carolina First Corp 24.82 24.69 37.37 32.92 9.58 8.75
12/27/1999 05/19/2000 Bank of the Sierra 10.05 5.67 17.23 27.00 42.88 NA
12/21/1999 07/17/2000 Wells Fargo & Co. 35.90 36.94 10.59 31.02 42.58 11.44
12/15/1999 06/15/2000 BB&T Corp. 29.13 NA -2.98 14.14 9.15 -10.44
12/14/1999 05/18/2000 Greater Bay Bncrp 38.73 42.54 20.74 32.52 43.93 62.19
12/08/1999 07/01/2000 NBT Bncrp Inc. 20.10 20.51 5.70 16.16 19.72 27.53
12/02/1999 03/31/2000 Cmmnty National Bncrp 26.43 8.02 14.56 9.26 20.41 31.11
11/08/1999 04/04/2000 First Charter Corp. 34.51 35.48 63.48 115.22 104.85 55.86
10/04/1999 10/11/2000 North Valley Bncrp 12.00 6.84 18.82 16.66 16.66 60.41
10/04/1999 03/29/2000 Summit Bncrp 19.42 16.30 62.50 57.58 87.39 47.52
CONFIDENTIAL 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
---- ---- ---------------- -- ----------- --
09/30/1999 01/28/2000 Wells Fargo & Co. CA North County Bncrp CA
09/28/1999 03/08/2000 Columbia Bncrp MD Suburban Bncshrs, Inc. MD
09/22/1999 03/01/2000 City National Corp. CA Pacific Bank, N.A. CA
09/10/1999 04/01/2000 Old Kent Fin Corp. MI Grand Premier Fin, Inc. IL
09/07/1999 12/30/1999 F&M Bncrp MD Patapsco Valley Bncshrs, Inc. MD
09/07/1999 03/20/2000 Gold Banc Corp. KS American Bncshrs, Inc. FL
08/30/1999 01/06/2000 SJNB Fin Corp. CA Saratoga Bncrp CA
08/23/1999 02/18/2000 Centura Banks Inc. NC Triangle Bncrp, Inc. NC
08/16/1999 02/17/2000 NBT Bncrp Inc. NY Lake Ariel Bncrp, Inc. PA
08/02/1999 12/31/1999 Tompkins Trustco Inc. NY Letchworth Independent Bncshrs NY
07/30/1999 02/11/2000 Old Kent Fin Corp. MI Merchants Bncrp, Inc. IL
07/30/1999 03/10/2000 Old National Bncrp IN ANB Corp IN
07/29/1999 01/28/2000 Wells Fargo & Co. CA Prime Bncshrs, Inc. TX
07/28/1999 01/14/2000 BB&T Corp. NC Premier Bncshrs, Inc. GA
07/12/1999 11/19/1999 Fifth Third Bncrp OH Peoples Bk Corp of Indianapolis IN
06/30/1999 12/01/1999 Webster Fin Corp. CT New England Cmmnty Bncrp, Inc. CT
06/29/1999 12/01/1999 Hudson United Bncrp NJ JeffBanks, Inc. PA
06/29/1999 12/01/1999 Hudson United Bncrp NJ Southern Jersey Bncrp of DE NJ
06/21/1999 01/11/2000 Citizens Fin Group, Inc. RI UST Corp MA
06/16/1999 10/29/1999 Fifth Third Bncrp OH CNB Bncshrs, Inc. IN
06/07/1999 09/29/1999 Sky Fin Group Inc. OH Mahoning National Bncrp, Inc OH
06/02/1999 05/10/2000 Peoples Heritage ME Banknorth Group, Inc. VT
06/01/1999 10/01/1999 AmSouth Bncrp. AL First American Corp TN
05/19/1999 11/15/1999 U.S. Bncrp MN Western Bncrp CA
05/18/1999 10/04/1999 CVB Fin Corp. CA Orange National Bncrp CA
05/10/1999 12/31/1999 HSBC Hldngs, Plc Republic NY Corp NY
05/03/1999 10/15/1999 Greater Bay Bncrp CA Bay Commercial Srvcs CA
04/30/1999 09/20/1999 Firstar Corp. WI Mercantile Bncrp, Inc. MO
04/27/1999 10/06/1999 Zions Bncrp. UT Regency Bncrp CA
04/19/1999 11/01/1999 Citizens Banking Corp. MI F&M Bncrp, Inc. WI
03/22/1999 10/12/1999 PSB Bncrp Inc. PA First Bk of Philadelphia PA
03/19/1999 09/03/1999 Old Kent Fin Corp. MI Pinnacle Banc Group, Inc. IL
03/19/1999 10/05/1999 Synovus Fin Corp. GA Merit Hldng Corp GA
02/25/1999 08/30/1999 BB&T Corp. NC Matewan Bncshrs, Inc. WV
02/25/1999 07/01/1999 BancWest Corp. HI SierraWest Bncrp CA
02/23/1999 07/02/1999 MidCity Fin Corp IL Damen Fin Corp IL
02/22/1999 07/16/1999 Union Planters Corp. TN Republic Banking Corp of FL FL
02/18/1999 07/16/1999 U.S. Bncrp MN Bank of Commerce CA
02/18/1999 08/02/1999 Summit Bncrp NJ Prime Bncrp, Inc. PA
02/18/1999 11/30/1999 Union Bnkshrs Inc. VT Citizens Savings B&T Co VT
02/01/1999 07/31/1999 Independence Comm. Bk Corp. NY Broad National Bncrp NJ
01/28/1999 07/14/1999 BB&T Corp. NC Mason-Dixon Bncshrs, Inc. MD
01/26/1999 05/21/1999 Greater Bay Bncrp CA Bay Area Bncshrs CA
12/30/1998 06/14/1999 First Security Corp. UT XEON Fin Corp. NV
12/24/1998 06/18/1999 Banterra Corp. IL Heartland Bncshrs, Inc IL
12/17/1998 06/11/1999 Valley National Bncrp NJ Ramapo Fin Corp NJ
12/16/1998 05/28/1999 Chittenden Corp. VT Vermont Fin Srvcs Corp. VT
12/14/1998 08/06/1999 Sky Fin Group Inc. OH First Western Bncrp, Inc. PA
12/10/1998 07/14/1999 BT Fin Corp. PA First Philson Fin Corp PA
12/09/1998 06/01/1999 M&T Bk Corp. NY FNB Rochester Corp. NY
12/07/1998 07/15/1999 Lakeland Bncrp NJ High Point Fin Corp. NJ
11/11/1998 05/20/1999 Webster Fin Corp. CT Village Bncrp, Inc. CT
11/10/1998 03/22/1999 F&M National Corp. VA Security Bk Corp VA
11/04/1998 04/22/1999 Webster Fin Corp. CT Maritime Bk & Trust Co CT
10/06/1998 12/30/1998 Western Bncrp CA PNB Fin Group CA
09/17/1998 01/15/1999 Commerce Bncrp Inc. NJ Prestige Fin Corp. NJ
09/16/1998 01/22/1999 Eldorado Bncshrs CA Antelope Valley Bank CA
Target Financials at Announcement
-----------------------------------------------------
Total Equity/ NPAs/ Rsrvs/
Announce Complete Assets Assets ROAA ROAE Assets NPLs
Date Date Buyer Short Name ($000) (%) (%) (%) [%] (%)
---- ---- ---------------- ------ --- --- --- --- ---
09/30/1999 01/28/2000 Wells Fargo & Co. 349,003 9.22 1.26 13.79 2.17 47.65
09/28/1999 03/08/2000 Columbia Bncrp 222,575 9.14 0.43 4.37 0.91 106.67
09/22/1999 03/01/2000 City National Corp. 728,622 10.10 1.11 10.36 0.35 480.66
09/10/1999 04/01/2000 Old Kent Fin Corp. 1,574,959 11.92 1.74 14.39 0.32 275.85
09/07/1999 12/30/1999 F&M Bncrp 173,636 9.60 0.27 2.75 0.42 190.35
09/07/1999 03/20/2000 Gold Banc Corp. 484,828 5.57 0.40 7.02 0.98 54.02
08/30/1999 01/06/2000 SJNB Fin Corp. 148,558 10.00 1.29 12.62 0.00 NA
08/23/1999 02/18/2000 Centura Banks Inc. 2,285,333 7.21 1.25 16.05 0.23 590.77
08/16/1999 02/17/2000 NBT Bncrp Inc. 492,894 7.12 0.82 10.43 0.63 107.11
08/02/1999 12/31/1999 Tompkins Trustco Inc. 280,555 12.09 1.37 11.44 NA 583.57
07/30/1999 02/11/2000 Old Kent Fin Corp. 920,961 7.79 1.09 26.23 0.66 153.17
07/30/1999 03/10/2000 Old National Bncrp 642,494 9.53 1.03 10.70 0.27 320.79
07/29/1999 01/28/2000 Wells Fargo & Co. 1,199,706 7.29 1.24 16.40 0.14 555.81
07/28/1999 01/14/2000 BB&T Corp. 1,510,890 9.09 1.58 16.60 0.28 489.08
07/12/1999 11/19/1999 Fifth Third Bncrp 650,445 8.06 1.23 15.25 0.12 NA
06/30/1999 12/01/1999 Webster Fin Corp. 786,909 9.17 1.11 11.77 1.02 NA
06/29/1999 12/01/1999 Hudson United Bncrp 1,684,467 7.90 0.94 11.77 0.84 NA
06/29/1999 12/01/1999 Hudson United Bncrp 465,446 6.66 0.22 3.25 NA 39.88
06/21/1999 01/11/2000 Citizens Fin Group, Inc. 5,929,827 9.02 1.17 12.87 0.48 266.33
06/16/1999 10/29/1999 Fifth Third Bncrp 7,218,796 7.17 1.39 19.32 0.56 152.92
06/07/1999 09/29/1999 Sky Fin Group Inc. 808,691 12.01 1.85 15.40 NA NA
06/02/1999 05/10/2000 Peoples Heritage 4,338,522 7.48 1.23 16.75 0.50 227.00
06/01/1999 10/01/1999 AmSouth Bncrp. 20,326,467 8.94 1.31 14.73 0.26 NA
05/19/1999 11/15/1999 U.S. Bncrp 2,496,237 14.22 1.44 10.08 0.79 183.91
05/18/1999 10/04/1999 CVB Fin Corp. 279,054 8.66 1.06 12.57 0.74 80.61
05/10/1999 12/31/1999 HSBC Hldngs, Plc 50,453,034 6.34 0.39 6.05 0.19 NA
05/03/1999 10/15/1999 Greater Bay Bncrp 144,202 7.90 0.96 11.28 0.35 196.39
04/30/1999 09/20/1999 Firstar Corp. 35,578,819 8.72 1.33 15.20 0.49 284.80
04/27/1999 10/06/1999 Zions Bncrp. 231,967 9.68 1.77 18.17 0.81 NA
04/19/1999 11/01/1999 Citizens Banking Corp. 2,429,651 9.85 1.43 14.58 0.68 174.45
03/22/1999 10/12/1999 PSB Bncrp Inc. 63,479 9.04 1.27 14.43 2.21 95.91
03/19/1999 09/03/1999 Old Kent Fin Corp. 1,147,478 10.23 1.36 14.42 0.36 173.81
03/19/1999 10/05/1999 Synovus Fin Corp. 306,367 12.18 1.70 14.36 0.13 NA
02/25/1999 08/30/1999 BB&T Corp. 683,634 9.78 0.92 9.17 0.89 120.91
02/25/1999 07/01/1999 BancWest Corp. 879,169 8.90 0.92 10.48 1.36 80.22
02/23/1999 07/02/1999 MidCity Fin Corp 220,204 19.61 0.87 4.41 0.24 86.68
02/22/1999 07/16/1999 Union Planters Corp. 1,542,658 10.97 1.00 9.35 0.66 149.87
02/18/1999 07/16/1999 U.S. Bncrp 638,166 9.56 1.92 24.90 0.37 220.03
02/18/1999 08/02/1999 Summit Bncrp 1,039,340 8.64 1.20 14.42 0.35 328.83
02/18/1999 11/30/1999 Union Bnkshrs Inc. 98,907 10.78 1.14 10.66 0.76 150.63
02/01/1999 07/31/1999 Independence Comm. Bk Co 622,276 7.09 1.22 18.35 0.72 187.31
01/28/1999 07/14/1999 BB&T Corp. 1,083,283 7.54 1.02 13.96 0.67 131.16
01/26/1999 05/21/1999 Greater Bay Bncrp 151,605 9.11 1.71 18.08 0.10 NA
12/30/1998 06/14/1999 First Security Corp. 121,024 8.11 1.56 19.34 0.10 NA
12/24/1998 06/18/1999 Banterra Corp. 62,905 18.07 -0.07 -0.40 1.33 74.81
12/17/1998 06/11/1999 Valley National Bncrp 327,779 10.18 1.18 11.27 0.70 NM
12/16/1998 05/28/1999 Chittenden Corp. 2,110,300 10.17 0.89 8.71 0.65 146.59
12/14/1998 08/06/1999 Sky Fin Group Inc. 2,203,139 6.72 1.00 13.35 0.11 NA
12/10/1998 07/14/1999 BT Fin Corp. 213,742 11.83 1.36 11.58 0.10 NA
12/09/1998 06/01/1999 M&T Bk Corp. 567,896 6.60 0.88 13.78 0.37 278.68
12/07/1998 07/15/1999 Lakeland Bncrp 252,746 9.56 0.85 9.01 1.70 118.55
11/11/1998 05/20/1999 Webster Fin Corp. 234,257 7.11 0.88 12.36 0.58 86.50
11/10/1998 03/22/1999 F&M National Corp. 61,706 12.86 0.49 3.68 2.65 37.13
11/04/1998 04/22/1999 Webster Fin Corp. 103,663 6.81 0.96 13.42 0.15 NM
10/06/1998 12/30/1998 Western Bncrp 267,408 10.95 2.88 25.90 0.62 319.61
09/17/1998 01/15/1999 Commerce Bncrp Inc. 310,399 6.83 1.15 16.54 0.28 234.22
09/16/1998 01/22/1999 Eldorado Bncshrs 200,916 10.26 0.87 8.52 NA 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) (%)
---- ---- ---------------- ---- --- ------- --- --- --- ---
09/30/1999 01/28/2000 Wells Fargo & Co. 112.9 21.00 Stock 321.10 323.08 22.34 32.35
09/28/1999 03/08/2000 Columbia Bncrp 34.5 3.00 Stock 166.67 166.67 27.27 15.50
09/22/1999 03/01/2000 City National Corp. 151.4 29.00 Mixed 197.14 220.20 42.03 20.78
09/10/1999 04/01/2000 Old Kent Fin Corp. 393.1 16.66 Mixed 206.44 225.44 12.34 24.96
09/07/1999 12/30/1999 F&M Bncrp 47.0 34.07 Stock 279.29 292.47 NM 27.07
09/07/1999 03/20/2000 Gold Banc Corp. 93.1 18.18 Stock 338.55 339.18 45.45 19.20
08/30/1999 01/06/2000 SJNB Fin Corp. 43.1 23.28 Stock 248.66 248.66 20.60 29.01
08/23/1999 02/18/2000 Centura Banks Inc. 607.7 23.40 Stock 356.16 412.70 24.38 26.59
08/16/1999 02/17/2000 NBT Bncrp Inc. 92.6 18.50 Stock 255.88 272.06 25.00 18.79
08/02/1999 12/31/1999 Tompkins Trustco Inc. 83.9 19.35 Stock 246.81 NA 23.14 18.94
07/30/1999 02/11/2000 Old Kent Fin Corp. 185.9 35.12 Stock 253.57 284.14 20.07 20.19
07/30/1999 03/10/2000 Old National Bncrp 212.8 37.58 Stock 299.11 358.06 25.58 29.05
07/29/1999 01/28/2000 Wells Fargo & Co. 243.9 24.11 Stock 270.31 284.34 17.86 20.33
07/28/1999 01/14/2000 BB&T Corp. 598.4 18.43 Stock 338.56 347.19 22.07 30.35
07/12/1999 11/19/1999 Fifth Third Bncrp 228.2 73.00 Stock 417.84 417.84 27.44 35.08
06/30/1999 12/01/1999 Webster Fin Corp. 221.1 30.08 Stock 290.05 310.40 27.59 28.10
06/29/1999 12/01/1999 Hudson United Bncrp 386.9 33.19 Stock 274.08 285.39 22.89 22.97
06/29/1999 12/01/1999 Hudson United Bncrp 58.6 44.02 Stock 160.20 160.20 NM 12.59
06/21/1999 01/11/2000 Citizens Fin Group, Inc. 1,412.0 32.00 Cash 256.00 282.69 25.60 23.81
06/16/1999 10/29/1999 Fifth Third Bncrp 2,327.9 59.68 Stock 332.29 358.65 32.97 32.25
06/07/1999 09/29/1999 Sky Fin Group Inc. 305.6 48.66 Stock 315.77 315.77 21.44 37.91
06/02/1999 05/10/2000 Peoples Heritage 778.2 32.85 Stock 234.98 305.87 22.05 17.94
06/01/1999 10/01/1999 AmSouth Bncrp. 6,340.5 53.09 Stock 340.76 388.08 28.85 31.19
05/19/1999 11/15/1999 U.S. Bncrp 958.1 44.40 Stock 261.45 437.39 47.74 38.38
05/18/1999 10/04/1999 CVB Fin Corp. 77.3 36.66 Stock 303.45 305.73 21.95 27.70
05/10/1999 12/31/1999 HSBC Hldngs, Plc 8,077.8 72.00 Cash 277.46 305.73 51.80 16.01
05/03/1999 10/15/1999 Greater Bay Bncrp 29.2 21.49 Stock 203.90 205.26 22.62 20.25
04/30/1999 09/20/1999 Firstar Corp. 10,669.6 66.00 Stock 335.87 445.93 27.39 29.99
04/27/1999 10/06/1999 Zions Bncrp. 63.4 22.43 Stock 262.33 264.49 17.12 27.33
04/19/1999 11/01/1999 Citizens Banking Corp. 822.2 50.82 Stock 331.67 347.62 23.79 32.38
03/22/1999 10/12/1999 PSB Bncrp Inc. 15.7 6.00 Stock 273.66 273.66 20.88 24.73
03/19/1999 09/03/1999 Old Kent Fin Corp. 239.8 32.27 Stock 205.12 248.96 16.55 20.90
03/19/1999 10/05/1999 Synovus Fin Corp. 118.2 24.15 Stock 302.27 302.27 23.45 38.58
02/25/1999 08/30/1999 BB&T Corp. 124.1 26.13 Stock 202.09 251.01 21.07 18.15
02/25/1999 07/01/1999 BancWest Corp. 198.7 36.08 Stock 244.44 250.73 25.59 22.60
02/23/1999 07/02/1999 MidCity Fin Corp 53.8 18.35 Cash 119.86 119.86 26.99 24.43
02/22/1999 07/16/1999 Union Planters Corp. 419.0 19.25 Cash 241.83 259.78 25.00 27.16
02/18/1999 07/16/1999 U.S. Bncrp 306.3 19.13 Stock 455.36 455.36 22.50 48.00
02/18/1999 08/02/1999 Summit Bncrp 302.5 26.58 Stock 324.91 335.16 24.61 29.11
02/18/1999 11/30/1999 Union Bnkshrs Inc. 22.3 146.74 Stock 209.15 209.15 20.61 22.55
02/01/1999 07/31/1999 Independence Comm. Bk Corp. 138.8 26.50 Mixed 296.09 297.42 18.66 22.31
01/28/1999 07/14/1999 BB&T Corp. 245.8 48.34 Stock 299.16 326.43 23.35 22.69
01/26/1999 05/21/1999 Greater Bay Bncrp 43.6 41.78 Stock 303.84 303.84 19.08 28.76
12/30/1998 06/14/1999 First Security Corp. 32.2 10.14 Stock 290.54 290.54 NM 26.61
12/24/1998 06/18/1999 Banterra Corp. 13.2 15.75 Cash 115.38 115.38 NM 20.98
12/17/1998 06/11/1999 Valley National Bncrp 105.1 12.09 Stock 293.35 297.68 29.48 32.06
12/16/1998 05/28/1999 Chittenden Corp. 454.2 34.64 Stock 208.18 285.58 27.94 21.52
12/14/1998 08/06/1999 Sky Fin Group Inc. 426.5 37.24 Stock 279.98 479.87 22.03 19.36
12/10/1998 07/14/1999 BT Fin Corp. 80.6 46.26 Stock 318.81 318.81 29.46 37.71
12/09/1998 06/01/1999 M&T Bk Corp. 128.8 32.72 Mixed 316.15 316.15 25.17 22.68
12/07/1998 07/15/1999 Lakeland Bncrp 65.6 18.60 Stock 293.38 293.38 32.07 28.74
11/11/1998 05/20/1999 Webster Fin Corp. 47.3 23.50 Stock 271.68 271.68 31.33 20.19
11/10/1998 03/22/1999 F&M National Corp. 17.4 17.25 Stock 208.33 208.33 40.12 28.20
11/04/1998 04/22/1999 Webster Fin Corp. 20.8 26.67 Stock 266.43 266.43 23.19 19.97
10/06/1998 12/30/1998 Western Bncrp 96.3 31.63 Stock 292.55 292.55 13.87 36.01
09/17/1998 01/15/1999 Commerce Bncrp Inc. 75.2 16.25 Stock 325.65 325.65 24.62 24.23
09/16/1998 01/22/1999 Eldorado Bncshrs 44.5 58.00 Stock 215.93 265.93 22.75 22.15
Control Premium
-------------------------------------------------
Prem/ Relative to Previous Trading Price
---------------------------------------
Announce Complete Deps 1 Day 1 Month 3 Month 1 Year
Date Date Buyer Short Name (%) (%) (%) (%) (%)
---- ---- ---------------- --- --- --- --- ---
09/30/1999 01/28/2000 Wells Fargo & Co. 27.60 7.01 23.53 25.37 64.86
09/28/1999 03/08/2000 Columbia Bncrp 7.74 37.14 29.73 20.00 2.11
09/22/1999 03/01/2000 City National Corp. 15.73 42.33 56.76 43.21 31.82
09/10/1999 04/01/2000 Old Kent Fin Corp. 19.58 11.07 25.74 41.79 35.75
09/07/1999 12/30/1999 F&M Bncrp 22.01 23.90 27.38 28.58 -27.50
09/07/1999 03/20/2000 Gold Banc Corp. 21.73 51.50 120.36 117.07 96.54
08/30/1999 01/06/2000 SJNB Fin Corp. 32.53 22.50 17.11 41.06 45.47
08/23/1999 02/18/2000 Centura Banks Inc. 31.46 41.82 42.36 50.97 37.14
08/16/1999 02/17/2000 NBT Bncrp Inc. 20.63 42.31 60.87 72.09 29.50
08/02/1999 12/31/1999 Tompkins Trustco Inc. NA 40.10 39.47 46.05 14.67
07/30/1999 02/11/2000 Old Kent Fin Corp. 19.58 8.90 25.43 37.73 15.15
07/30/1999 03/10/2000 Old National Bncrp 30.06 33.02 60.77 87.90 32.44
07/29/1999 01/28/2000 Wells Fargo & Co. 19.64 19.81 43.42 50.70 3.43
07/28/1999 01/14/2000 BB&T Corp. 32.76 -5.19 -1.05 -5.49 -31.59
07/12/1999 11/19/1999 Fifth Third Bncrp 34.48 52.08 89.60 100.68 105.62
06/30/1999 12/01/1999 Webster Fin Corp. 26.26 12.44 52.29 49.92 30.77
06/29/1999 12/01/1999 Hudson United Bncrp 23.16 18.54 29.53 59.96 6.38
06/29/1999 12/01/1999 Hudson United Bncrp 7.60 85.36 74.34 53.12 -9.31
06/21/1999 01/11/2000 Citizens Fin Group, Inc. 23.74 31.96 33.33 38.01 22.49
06/16/1999 10/29/1999 Fifth Third Bncrp 37.14 44.02 47.13 42.52 36.41
06/07/1999 09/29/1999 Sky Fin Group Inc. 41.01 54.48 72.25 76.95 39.53
06/02/1999 05/10/2000 Peoples Heritage 15.87 22.80 24.26 20.00 -8.27
06/01/1999 10/01/1999 AmSouth Bncrp. 37.95 30.08 36.79 27.93 17.00
05/19/1999 11/15/1999 U.S. Bncrp 39.68 13.83 29.98 47.98 3.09
05/18/1999 10/04/1999 CVB Fin Corp. 22.80 31.80 40.99 37.68 27.50
05/10/1999 12/31/1999 HSBC Hldngs, Plc 16.32 2.86 30.61 81.42 8.78
05/03/1999 10/15/1999 Greater Bay Bncrp 19.77 15.39 45.70 43.27 36.45
04/30/1999 09/20/1999 Firstar Corp. 38.13 28.78 37.85 46.87 19.18
04/27/1999 10/06/1999 Zions Bncrp. 23.74 12.15 36.97 12.15 54.68
04/19/1999 11/01/1999 Citizens Banking Corp. 31.82 27.84 50.01 58.19 37.17
03/22/1999 10/12/1999 PSB Bncrp Inc. 19.04 3.23 20.00 20.00 20.00
03/19/1999 09/03/1999 Old Kent Fin Corp. 17.39 18.68 19.22 13.21 -6.82
03/19/1999 10/05/1999 Synovus Fin Corp. 37.22 25.87 31.43 28.81 8.54
02/25/1999 08/30/1999 BB&T Corp. 15.03 -13.26 -19.60 -3.22 -0.46
02/25/1999 07/01/1999 BancWest Corp. 19.63 26.74 41.49 42.54 -1.15
02/23/1999 07/02/1999 MidCity Fin Corp 12.32 20.33 24.41 26.55 1.24
02/22/1999 07/16/1999 Union Planters Corp. 26.72 10.79 57.14 92.50 7.31
02/18/1999 07/16/1999 U.S. Bncrp 48.08 15.91 16.35 29.11 23.39
02/18/1999 08/02/1999 Summit Bncrp 34.43 47.66 47.66 41.75 49.74
02/18/1999 11/30/1999 Union Bnkshrs Inc. 15.09 59.50 60.37 101.01 186.32
02/01/1999 07/31/1999 Independence Comm. Bk Corp. 21.13 18.11 32.50 68.00 42.69
01/28/1999 07/14/1999 BB&T Corp. 30.28 74.21 63.88 80.73 40.13
01/26/1999 05/21/1999 Greater Bay Bncrp 27.75 30.56 52.61 59.15 42.83
12/30/1998 06/14/1999 First Security Corp. 23.50 35.20 32.98 44.86 57.50
12/24/1998 06/18/1999 Banterra Corp. 3.91 28.57 38.46 29.90 5.00
12/17/1998 06/11/1999 Valley National Bncrp 26.30 55.95 82.43 92.42 42.19
12/16/1998 05/28/1999 Chittenden Corp. 17.77 34.53 55.25 71.07 22.62
12/14/1998 08/06/1999 Sky Fin Group Inc. 23.80 23.10 46.03 60.16 34.19
12/10/1998 07/14/1999 BT Fin Corp. 31.04 41.25 49.22 96.85 60.20
12/09/1998 06/01/1999 M&T Bk Corp. 23.18 50.45 79.30 81.79 66.74
12/07/1998 07/15/1999 Lakeland Bncrp 23.61 39.07 39.07 86.00 61.74
11/11/1998 05/20/1999 Webster Fin Corp. 15.28 11.90 17.50 20.90 42.42
11/10/1998 03/22/1999 F&M National Corp. 28.98 50.00 56.82 38.00 64.29
11/04/1998 04/22/1999 Webster Fin Corp. 15.85 33.35 27.00 33.35 94.56
10/06/1998 12/30/1998 Western Bncrp 39.37 7.20 2.02 -6.99 107.82
09/17/1998 01/15/1999 Commerce Bncrp Inc. 20.90 25.00 35.42 16.07 30.00
09/16/1998 01/22/1999 Eldorado Bncshrs 16.50 38.10 33.33 45.91 61.67
CONFIDENTIAL 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 Announcement
-------------------------------------
Total Equity/ NPAs/ Rsrvs/
Announce Complete Assets Assets ROAA ROAE Assets NPLs
Date Date Buyer Short Name ST Target Name ST ($000) (%) (%) (%) (%) (%)
---- ---- ---------------- -- ----------- -- --------- ----- ---- ----- ---- ------
08/27/1998 03/05/1999 BB&T Corp. NC MainStreet Fin Corp VA 2,041,955 7.84 1.02 12.68 0.32 286.02
08/25/1998 03/31/1999 Summit Bncrp NJ New Canaan B&T Co CT 173,422 9.12 1.26 12.88 0.47 259.65
08/11/1998 02/12/1999 FirstMerit Corp. OH Signal Corp. OH 1,519,719 7.11 1.09 15.26 0.29 110.06
08/07/1998 12/31/1998 City Hldng Co. WV Horizon Bncrp, Inc. WV 1,043,327 10.91 1.40 12.64 0.65 180.07
07/31/1998 12/31/1998 Banknorth Group Inc. VT Evergreen Bncrp, Inc. NY 1,048,307 8.19 1.16 13.72 0.52 270.46
07/28/1998 01/22/1999 Patriot Bk Corp. PA First Lehigh Corp PA 110,628 13.13 1.08 8.15 4.42 51.61
07/20/1998 12/31/1998 SunTrust Banks Inc. GA Crestar Fin Corp VA 26,161,173 8.43 1.40 16.44 0.29 414.66
07/16/1998 12/31/1998 First Commonwealth Financial PA Southwest National Corp PA 742,106 11.24 1.17 10.46 0.46 193.83
05/28/1998 11/20/1998 First American Corp. TN Pioneer Bncshrs, Inc TN 993,087 10.16 0.97 9.47 0.51 201.34
05/26/1998 09/15/1998 First Banks Inc. MO Republic Bank CA 122,622 4.62 1.32 33.20 4.06 28.79
05/08/1998 09/28/1998 Mercantile Bncrp. MO First Fin Bncrp IA 568,442 10.60 1.24 11.77 NA NA
04/21/1998 10/01/1998 Old Kent Fin Corp. MI First Evergreen Corp IL 1,933,096 10.25 0.94 9.51 0.12 153.96
04/17/1998 10/23/1998 Western Bncrp CA Bank of Los Angeles CA 278,161 11.54 1.38 11.89 NA 53.42
04/14/1998 08/31/1998 Anchor Fin Corp. SC ComSouth Bnkshrs, Inc. SC 205,572 7.79 1.24 15.18 0.04 NA
04/14/1998 12/16/1998 Susquehanna Bncshrs Inc. PA Cardinal Bncrp, Inc PA 129,941 13.22 1.43 11.48 0.37 308.04
04/09/1998 08/21/1998 Star Banc Corp OH Trans Fin, Inc. KY 2,115,011 7.13 1.20 17.03 1.11 97.90
04/01/1998 08/31/1998 Union Planters Corp. TN AMBANC Corp. IN 759,395 10.32 1.14 11.14 0.48 185.32
03/19/1998 07/31/1998 JeffBanks Inc. PA Regent Bncshrs Corp. PA 225,619 8.04 0.46 7.55 NA NA
03/19/1998 08/14/1998 New England Cmmnty Bncrp CT Bank of South Windsor CT 155,123 6.99 0.82 12.42 0.48 408.33
03/15/1998 07/01/1998 St. Paul Bncrp Inc. IL Beverly Bncrp, Inc. IL 669,234 10.22 1.09 10.82 0.33 194.32
03/03/1998 08/14/1998 Hudson United Bncrp NJ Cmmnty Fin Hldng Corp NJ 150,671 7.69 0.48 5.64 0.56 131.62
02/22/1998 07/01/1998 Union Planters Corp. TN Magna Group, Inc. MO 7,074,969 8.85 1.09 12.29 0.45 198.37
02/19/1998 05/30/1998 First Security Corp. UT California State Bank CA 849,232 9.82 1.19 11.57 0.60 196.29
02/13/1998 09/11/1998 Regions Fin Corp. AL First Cmmnty Banking GA 120,630 8.51 1.29 16.24 1.39 129.93
Srvcs, Inc.
02/09/1998 06/30/1998 Banco Bilbao Vizcaya Argent PonceBank PR 1,096,651 8.51 0.96 11.65 3.07 55.15
SA
02/02/1998 07/01/1998 Mercantile Bncrp. MO Firstbank of Illinois Co. IL 2,170,047 10.50 1.42 13.66 0.55 193.42
01/30/1998 07/10/1998 Mid-State Bncshrs CA BSM Bncrp CA 335,829 10.34 1.26 11.87 0.67 213.04
01/26/1998 09/14/1998 Fulton Fin Corp. PA Ambassador Bk-Commonwealth PA 257,731 7.88 0.80 11.66 0.29 313.31
01/15/1998 07/01/1998 First Midwest Bncrp Inc. IL Heritage Fin Srvcs, Inc. IL 1,284,703 9.03 1.39 16.12 0.19 538.98
01/12/1998 07/01/1998 Mercantile Bncrp. MO CBT Corp KY 1,044,679 11.22 1.29 11.14 0.56 167.55
01/12/1998 03/30/1998 National City Corp. OH Fort Wayne National Corp IN 3,292,602 8.80 1.15 12.22 0.45 223.61
01/08/1998 07/07/1998 Union Planters Corp. TN CB&T, Inc TN 268,119 12.63 1.68 13.81 NA NA
Average: All Deals 4,874,684 9.16 1.09 12.27 0.66 209.60
Median: All Deals 581,784 8.88 1.15 12.63 0.48 190.35
Average: 2000 Deals 10,139,033 8.40 0.96 11.41 0.54 215.97
Median: 2000 Deals 552,504 8.48 1.14 13.06 0.39 202.20
Average: 1999 Deals 3,058,664 9.56 1.17 12.79 0.64 216.30
Median: 1999 Deals 646,470 9.10 1.21 12.75 0.52 179.18
Average: 1998 Deals 1,434,341 9.49 1.12 12.58 0.81 195.98
Median: 1998 Deals 331,804 9.34 1.15 12.06 0.48 193.63
Deal and Pricing at Announcement
----------------------------------------
Deal Price/
Announce Complete Value Share P/B P/TB
Date Date Buyer Short Name ST Target Name ST ($M) ($) Consid. (%) (%)
---- ---- ---------------- -- ----------- -- ------ ------ ------- ------ ------
08/27/1998 03/05/1999 BB&T Corp. NC MainStreet Fin Corp VA 539.7 37.98 Stock 320.45 340.25
08/25/1998 03/31/1999 Summit Bncrp NJ New Canaan B&T Co CT 49.4 135.00 Stock 285.41 285.41
08/11/1998 02/12/1999 FirstMerit Corp. OH Signal Corp. OH 473.0 37.21 Mixed 321.87 466.85
08/07/1998 12/31/1998 City Hldng Co. WV Horizon Bncrp, Inc. WV 413.4 45.00 Stock 360.87 378.79
07/31/1998 12/31/1998 Banknorth Group Inc. VT Evergreen Bncrp, Inc. NY 318.7 34.43 Stock 351.28 351.99
07/28/1998 01/22/1999 Patriot Bk Corp. PA First Lehigh Corp PA 23.4 6.63 Stock 157.58 157.58
07/20/1998 12/31/1998 SunTrust Banks Inc. GA Crestar Fin Corp VA 9,606.1 83.94 Stock 427.18 469.73
07/16/1998 12/31/1998 First Commonwealth Financial PA Southwest National Corp PA 269.8 88.63 Stock 325.50 326.22
05/28/1998 11/20/1998 First American Corp. TN Pioneer Bncshrs, Inc TN 292.0 76.31 Stock 284.33 300.80
05/26/1998 09/15/1998 First Banks Inc. MO Republic Bank CA 19.3 14.73 Cash 300.00 300.00
05/08/1998 09/28/1998 Mercantile Bncrp. MO First Fin Bncrp IA 167.2 46.48 Stock 274.03 286.88
04/21/1998 10/01/1998 Old Kent Fin Corp. MI First Evergreen Corp IL 482.3 1,204.98 Stock 243.49 247.80
04/17/1998 10/23/1998 Western Bncrp CA Bank of Los Angeles CA 111.9 20.22 Stock 300.03 388.88
04/14/1998 08/31/1998 Anchor Fin Corp. SC ComSouth Bnkshrs, Inc. SC 80.8 33.00 Stock 494.12 494.12
04/14/1998 12/16/1998 Susquehanna Bncshrs Inc. PA Cardinal Bncrp, Inc PA 49.0 46.72 Stock 269.27 269.27
04/09/1998 08/21/1998 Star Banc Corp OH Trans Fin, Inc. KY 695.8 57.00 Stock 433.80 461.92
04/01/1998 08/31/1998 Union Planters Corp. TN AMBANC Corp. IN 211.1 30.11 Stock 268.32 273.93
03/19/1998 07/31/1998 JeffBanks Inc. PA Regent Bncshrs Corp. PA 53.1 15.61 Stock 293.33 293.33
03/19/1998 08/14/1998 New England Cmmnty Bncrp CT Bank of South Windsor CT 35.3 33.67 Stock 297.70 297.70
03/15/1998 07/01/1998 St. Paul Bncrp Inc. IL Beverly Bncrp, Inc. IL 170.6 28.10 Stock 236.65 239.33
03/03/1998 08/14/1998 Hudson United Bncrp NJ Cmmnty Fin Hldng Corp NJ 28.5 25.28 Stock 224.32 224.32
02/22/1998 07/01/1998 Union Planters Corp. TN Magna Group, Inc. MO 2,238.6 61.45 Stock 299.15 391.63
02/19/1998 05/30/1998 First Security Corp. UT California State Bank CA 302.0 52.81 Stock 324.37 402.19
02/13/1998 09/11/1998 Regions Fin Corp. AL First Cmmnty Banking GA 36.5 24.02 Stock 318.41 330.00
Srvcs, Inc.
02/09/1998 06/30/1998 Banco Bilbao Vizcaya Argent PonceBank PR 164.6 26.10 Cash 172.85 172.96
SA
02/02/1998 07/01/1998 Mercantile Bncrp. MO Firstbank of Illinois Co. IL 681.4 41.96 Stock 289.54 325.74
01/30/1998 07/10/1998 Mid-State Bncshrs CA BSM Bncrp CA 81.5 26.50 Stock 227.47 239.60
01/26/1998 09/14/1998 Fulton Fin Corp. PA Ambassador Bk-Commonwealth PA 76.9 34.79 Stock 315.42 316.86
01/15/1998 07/01/1998 First Midwest Bncrp Inc. IL Heritage Fin Srvcs, Inc. IL 407.9 32.61 Stock 337.56 394.29
01/12/1998 07/01/1998 Mercantile Bncrp. MO CBT Corp KY 275.9 34.36 Stock 230.42 242.63
01/12/1998 03/30/1998 National City Corp. OH Fort Wayne National Corp IN 846.8 44.44 Mixed 300.05 376.27
01/08/1998 07/07/1998 Union Planters Corp. TN CB&T, Inc TN 92.0 348.49 Stock 271.87 271.87
Average: All Deals 958.66 42.28 259.86 283.27
Median: All Deals 132.20 26.92 267.13 284.34
Average: 2000 Deals 1,653.26 25.52 221.14 243.39
Median: 2000 Deals 94.25 20.23 210.43 244.36
Average: 1999 Deals 763.58 33.44 270.60 292.84
Median: 1999 Deals 168.65 28.08 266.80 288.93
Average: 1998 Deals 454.40 69.77 288.11 311.89
Median: 1998 Deals 108.50 34.01 292.94 297.69
Deal and Pricing at Announcement
--------------------------------
Announce Complete P/E P/A
Date Date Buyer Short Name ST Target Name ST (x) (%)
---- ---- ---------------- -- ----------- -- --- ---
08/27/1998 03/05/1999 BB&T Corp. NC MainStreet Fin Corp VA 27.38 25.49
08/25/1998 03/31/1999 Summit Bncrp NJ New Canaan B&T Co CT 22.80 28.49
08/11/1998 02/12/1999 FirstMerit Corp. OH Signal Corp. OH 23.40 31.12
08/07/1998 12/31/1998 City Hldng Co. WV Horizon Bncrp, Inc. WV 29.41 39.62
07/31/1998 12/31/1998 Banknorth Group Inc. VT Evergreen Bncrp, Inc. NY 26.89 30.40
07/28/1998 01/22/1999 Patriot Bk Corp. PA First Lehigh Corp PA 9.90 21.15
07/20/1998 12/31/1998 SunTrust Banks Inc. GA Crestar Fin Corp VA 28.26 36.72
07/16/1998 12/31/1998 First Commonwealth Financial PA Southwest National Corp PA 30.78 36.36
05/28/1998 11/20/1998 First American Corp. TN Pioneer Bncshrs, Inc TN 29.69 29.40
05/26/1998 09/15/1998 First Banks Inc. MO Republic Bank CA 10.60 15.74
05/08/1998 09/28/1998 Mercantile Bncrp. MO First Fin Bncrp IA 23.83 29.41
04/21/1998 10/01/1998 Old Kent Fin Corp. MI First Evergreen Corp IL 26.68 24.95
04/17/1998 10/23/1998 Western Bncrp CA Bank of Los Angeles CA 20.85 40.23
04/14/1998 08/31/1998 Anchor Fin Corp. SC ComSouth Bnkshrs, Inc. SC 37.09 40.66
04/14/1998 12/16/1998 Susquehanna Bncshrs Inc. PA Cardinal Bncrp, Inc PA 25.25 37.71
04/09/1998 08/21/1998 Star Banc Corp OH Trans Fin, Inc. KY 27.94 32.90
04/01/1998 08/31/1998 Union Planters Corp. TN AMBANC Corp. IN 25.30 27.80
03/19/1998 07/31/1998 JeffBanks Inc. PA Regent Bncshrs Corp. PA 57.10 23.54
03/19/1998 08/14/1998 New England Cmmnty Bncrp CT Bank of South Windsor CT 26.72 22.76
03/15/1998 07/01/1998 St. Paul Bncrp Inc. IL Beverly Bncrp, Inc. IL 24.00 25.49
03/03/1998 08/14/1998 Hudson United Bncrp NJ Cmmnty Fin Hldng Corp NJ 45.14 18.92
02/22/1998 07/01/1998 Union Planters Corp. TN Magna Group, Inc. MO 27.80 31.64
02/19/1998 05/30/1998 First Security Corp. UT California State Bank CA 31.25 35.56
02/13/1998 09/11/1998 Regions Fin Corp. AL First Cmmnty Banking GA 21.45 30.26
Srvcs, Inc.
02/09/1998 06/30/1998 Banco Bilbao Vizcaya Argent PonceBank PR 15.26 15.01
SA
02/02/1998 07/01/1998 Mercantile Bncrp. MO Firstbank of Illinois Co. IL 22.68 31.40
01/30/1998 07/10/1998 Mid-State Bncshrs CA BSM Bncrp CA 19.78 24.27
01/26/1998 09/14/1998 Fulton Fin Corp. PA Ambassador Bk-Commonwealth PA 32.21 29.84
01/15/1998 07/01/1998 First Midwest Bncrp Inc. IL Heritage Fin Srvcs, Inc. IL 24.15 31.75
01/12/1998 07/01/1998 Mercantile Bncrp. MO CBT Corp KY 21.34 26.41
01/12/1998 03/30/1998 National City Corp. OH Fort Wayne National Corp IN 23.39 25.73
01/08/1998 07/07/1998 Union Planters Corp. TN CB&T, Inc TN 22.21 34.31
Average: All Deals 24.31 24.26
Median: All Deals 22.68 23.99
Average: 2000 Deals 21.23 18.80
Median: 2000 Deals 18.02 18.72
Average: 1999 Deals 25.14 25.83
Median: 1999 Deals 23.02 25.70
Average: 1998 Deals 26.42 28.16
Median: 1998 Deals 25.28 28.35
Control Premium
-------------------------------------------
Prem/ Relative to Previous Trading Price
-------------------------------------
Announce Complete Deps 1 Day 1 Month 3 Month 1 Year
Date Date Buyer Short Name ST Target Name ST (%) (%) (%) (%) (%)
---- ---- ---------------- -- ----------- -- --- --- --- --- ---
08/27/1998 03/05/1999 BB&T Corp. NC MainStreet Fin Corp VA 36.43 48.95 31.82 23.52 44.69
08/25/1998 03/31/1999 Summit Bncrp NJ New Canaan B&T Co CT 24.06 45.16 46.74 43.62 130.77
08/11/1998 02/12/1999 FirstMerit Corp. OH Signal Corp. OH 49.84 32.89 27.21 17.38 9.44
08/07/1998 12/31/1998 City Hldng Co. WV Horizon Bncrp, Inc. WV 39.37 6.19 13.92 25.87 41.73
07/31/1998 12/31/1998 Banknorth Group Inc. VT Evergreen Bncrp, Inc. NY 30.00 24.05 19.48 17.69 91.25
07/28/1998 01/22/1999 Patriot Bk Corp. PA First Lehigh Corp PA 10.24 -8.50 -3.51 -6.89 23.42
07/20/1998 12/31/1998 SunTrust Banks Inc. GA Crestar Fin Corp VA 46.70 31.16 55.98 39.90 94.08
07/16/1998 12/31/1998 First Commonwealth Financial PA Southwest National Corp PA 30.12 61.15 79.06 73.79 106.12
05/28/1998 11/20/1998 First American Corp. TN Pioneer Bncshrs, Inc TN 27.34 33.88 41.32 49.63 98.22
05/26/1998 09/15/1998 First Banks Inc. MO Republic Bank CA 13.20 -1.80 22.75 84.13 167.82
05/08/1998 09/28/1998 Mercantile Bncrp. MO First Fin Bncrp IA 24.36 22.30 25.61 31.84 108.10
04/21/1998 10/01/1998 Old Kent Fin Corp. MI First Evergreen Corp IL 18.80 180.23 180.23 180.23 NA
04/17/1998 10/23/1998 Western Bncrp CA Bank of Los Angeles CA 42.18 22.56 43.16 70.29 188.89
04/14/1998 08/31/1998 Anchor Fin Corp. SC ComSouth Bnkshrs, Inc. SC 45.55 9.31 28.16 51.72 224.59
04/14/1998 12/16/1998 Susquehanna Bncshrs Inc. PA Cardinal Bncrp, Inc PA 31.95 22.94 27.13 46.00 122.47
04/09/1998 08/21/1998 Star Banc Corp OH Trans Fin, Inc. KY 44.76 20.64 38.81 60.57 147.83
04/01/1998 08/31/1998 Union Planters Corp. TN AMBANC Corp. IN 23.27 1.19 19.82 20.42 73.21
03/19/1998 07/31/1998 JeffBanks Inc. PA Regent Bncshrs Corp. PA 24.99 11.46 11.46 11.46 131.19
03/19/1998 08/14/1998 New England Cmmnty Bncrp CT Bank of South Windsor CT 20.07 17.11 37.43 53.05 NA
03/15/1998 07/01/1998 St. Paul Bncrp Inc. IL Beverly Bncrp, Inc. IL 19.66 22.32 25.57 25.57 53.01
03/03/1998 08/14/1998 Hudson United Bncrp NJ Cmmnty Fin Hldng Corp NJ 13.05 1.12 16.23 42.43 45.45
02/22/1998 07/01/1998 Union Planters Corp. TN Magna Group, Inc. MO 36.89 31.44 41.66 57.55 95.07
02/19/1998 05/30/1998 First Security Corp. UT California State Bank CA 38.99 20.70 32.02 65.34 148.50
02/13/1998 09/11/1998 Regions Fin Corp. AL First Cmmnty Banking GA 27.84 0.62 47.84 53.14 149.13
Srvcs, Inc.
02/09/1998 06/30/1998 Banco Bilbao Vizcaya Argent PonceBank PR 15.84 12.56 22.82 28.89 20.00
SA
02/02/1998 07/01/1998 Mercantile Bncrp. MO Firstbank of Illinois Co. IL 29.13 10.41 9.69 32.14 78.53
01/30/1998 07/10/1998 Mid-State Bncshrs CA BSM Bncrp CA 18.37 0.00 -2.75 23.26 64.34
01/26/1998 09/14/1998 Fulton Fin Corp. PA Ambassador Bk-Commonwealth PA 29.58 26.51 32.54 61.82 NA
01/15/1998 07/01/1998 First Midwest Bncrp Inc. IL Heritage Fin Srvcs, Inc. IL 31.49 7.80 26.94 41.01 119.83
01/12/1998 07/01/1998 Mercantile Bncrp. MO CBT Corp KY 25.68 3.33 16.96 37.42 40.23
01/12/1998 03/30/1998 National City Corp. OH Fort Wayne National Corp IN 28.40 7.40 5.80 23.44 75.41
01/08/1998 07/07/1998 Union Planters Corp. TN CB&T, Inc TN 30.42 124.83 124.83 158.14 NA
Average: All Deals 23.14 29.86 40.97 47.19 41.82
Median: All Deals 22.01 23.75 33.33 43.21 34.19
Average: 2000 Deals 17.50 33.90 45.28 45.66 20.32
Median: 2000 Deals 16.53 28.78 39.48 43.58 19.57
Average: 1999 Deals 24.74 27.11 39.82 46.95 28.95
Median: 1999 Deals 22.98 22.65 35.06 42.73 27.53
Average: 1998 Deals 26.93 28.77 37.86 49.01 82.01
Median: 1998 Deals 25.99 23.02 32.28 43.03 69.98
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/
Announce Complete Assets Assets ROAA ROAE Assets
Date Date Buyer Short Name ST Target Name ST ($000) (%) (%) (%) (%)
- ---------- ---------- ----------------------------- -- ----------------------------- -- ------ --- --- --- ---
12/15/2000 Pending CKF Bncrp Inc. KY First Lancaster Bncshrs, Inc. KY 57,126 22.33 0.83 3.69 2.37
12/11/2000 Pending FBOP Corp. IL PBOC Hldgs, Inc. CA 3,276,687 6.55 1.12 20.71 0.57
12/09/2000 Pending United Cmmnty Finl Corp. OH Industrial Bncrp, Inc. OH 415,676 13.80 1.39 9.99 0.30
12/07/2000 Pending Platte Valley Fncl Service Co NE Tri-County Bncrp, Inc. WY 97,529 10.55 0.42 3.89 0.00
11/24/2000 Pending Hudson River Bncrp NY Cohoes Bncrp Inc. NY 739,335 16.72 0.75 4.50 0.70
11/02/2000 Pending PSB Bncrp Inc. PA Jade Fin Corp. PA 213,732 12.95 0.45 3.39 0.02
10/25/2000 Pending DFC Acquisition Corp. Two MO Hardin Bncrp, Inc. MO 143,325 8.90 0.88 9.91 0.13
10/20/2000 Pending First Bncrp NC Century Bncrp, Inc. NC 100,542 17.77 0.93 5.09 0.19
10/06/2000 Pending DFC Acquisition Corp. Two MO Cameron Fin Corp MO 299,235 13.31 0.82 5.70 0.05
09/20/2000 Pending Union Planters Corp. TN Jefferson Svngs Bncrp, Inc. MO 1,634,214 8.00 0.72 9.10 0.63
09/20/2000 Pending Glacier Bncrp Inc. MT WesterFed Fin Corp MT 945,663 9.37 0.79 8.88 0.31
09/19/2000 Pending Peoples Cmmnty Bncrp Inc. OH Market Fin Corp OH 55,926 26.08 0.56 2.12 0.00
09/06/2000 Pending BB&T Corp. NC FirstSpartan Fin Corp. SC 585,657 11.85 1.06 8.71 0.75
08/31/2000 12/08/2000 Fifth Third Bncrp OH Ottawa Fin Corp MI 1,084,624 7.37 0.84 11.31 0.32
08/25/2000 Pending United Bncshrs Inc. OH Delphos Citizens Bncrp, Inc. OH 133,099 19.34 1.16 5.99 0.00
08/21/2000 Pending Washington Mutual Inc. WA Bank United Corp TX 8,197,572 4.55 0.74 16.39 0.70
08/16/2000 Pending Berkshire Bncrp Inc. NY GSB Fin Corp NY 186,866 15.73 0.88 5.51 0.00
08/08/2000 Pending FNB Corp. VA SWVA Bncshrs, Inc. VA 83,123 7.97 0.53 6.60 0.00
07/26/2000 11/15/2000 Allegiant Bncrp Inc. MO Equality Bncrp, Inc. MO 323,335 6.16 0.36 5.01 0.22
07/21/2000 12/31/2000 Seacoast Fin Services MA Home Port Bncrp, Inc. MA 328,455 8.57 1.64 19.08 0.00
07/18/2000 11/20/2000 Citco Cmmnty Bkshrs, Inc. TN Twin City Bncrp, Inc. TN 121,169 11.36 0.86 7.61 0.00
06/27/2000 12/01/2000 Queens County Bncrp Inc. NY Haven Bncrp, Inc. NY 2,965,912 3.46 0.01 0.39 0.25
06/16/2000 10/13/2000 Old Kent Fin Corp. MI Home Bncrp IN 403,491 9.31 0.68 7.55 0.00
06/08/2000 11/10/2000 Troy Fin Corp. NY Catskill Fin Corp NY 346,102 16.21 1.29 7.93 0.11
06/05/2000 08/22/2000 Greater Atlantic Financial VA Dominion SB, FSB VA 43,430 2.18 -2.94 -67.50 1.01
06/02/2000 11/09/2000 Northeast PA Fin Corp. PA Security-PA Fin Corp. PA 134,400 14.47 0.70 4.51 1.67
05/31/2000 11/10/2000 NewMil Bncrp Inc. CT Nutmeg FS&LA CT 121,889 8.69 1.08 12.18 0.55
05/16/2000 11/13/2000 Patapsco Bncrp Inc. MD Northfield Bncrp, Inc. MD 54,301 13.12 0.23 1.74 0.00
05/15/2000 10/31/2000 First United Bncshrs Inc. AR Texarkana First Fin Corp AR 206,487 13.28 1.55 11.78 0.28
05/04/2000 08/31/2000 Provident Bnkshrs Corp. MD Harbor Fed Bncrp, Inc. MD 253,112 10.07 0.82 7.90 0.22
04/25/2000 10/02/2000 Prudential Plc Highland Bncrp, Inc. CA 654,778 7.36 1.60 21.76 0.63
03/28/2000 10/17/2000 Harris Fin MHC PA York Fin Corp. PA 1,546,213 7.07 0.65 8.53 0.68
03/28/2000 09/01/2000 Union Bnkshrs Co. ME Mid-Coast Bncrp, Inc. ME 76,429 7.26 0.67 9.05 0.00
03/21/2000 09/26/2000 Lincoln Bncrp IN Citizens Bncrp IN 60,884 24.36 1.44 5.86 0.62
03/15/2000 07/31/2000 Richmond County Fin Corp NY So Jersey Fin Corp, Inc. NJ 334,607 17.12 0.28 1.63 0.04
02/22/2000 11/02/2000 Mutual SB WI First Northern Cptl Corp WI 804,269 9.60 0.99 9.65 0.10
02/18/2000 07/14/2000 Fidelity Bncrp Inc. PA Pennwood Bncrp, Inc. PA 53,871 12.21 0.33 2.67 0.58
02/17/2000 07/19/2000 Sound Fed Bncrp (MHC) NY Peekskill Fin Corp NY 207,166 12.82 0.77 5.83 0.32
02/14/2000 07/31/2000 SouthBanc Shares Inc. SC Heritage Bncrp, Inc. SC 313,717 23.77 NA NA 0.00
01/13/2000 06/20/2000 BancFirst Ohio Corp. OH Milton Fed Fin Corp OH 256,676 9.75 0.64 6.31 0.18
12/29/1999 07/07/2000 Niagara Bncrp Inc. (MHC) NY CNY Fin Corp. NY 296,294 25.41 1.12 4.12 0.37
12/28/1999 04/11/2000 National Commerce Bncrp. TN Piedmont Bncrp, Inc. NC 140,178 13.77 0.72 5.22 0.75
12/21/1999 06/14/2000 Bank-Kentucky Finl Corp. KY Fort Thomas Fin Corp KY 100,517 13.34 1.00 7.96 2.46
12/16/1999 09/14/2000 First Bncrp NC First Svngs Bncrp, Inc. NC 313,233 20.50 1.73 7.61 0.10
12/03/1999 07/15/2000 Midland States Bncrp, Inc. IL CSB Fin Group, Inc. IL 48,124 21.15 0.63 2.93 0.50
12/02/1999 06/26/2000 Webster Fin Corp. CT MECH Financial, Inc. CT 1,097,160 8.38 1.38 16.24 0.28
11/17/1999 06/30/2000 East Texas Fin Services TX Gilmer Fin Services, Inc. TX 38,985 10.50 0.60 6.26 0.73
10/27/1999 06/16/2000 Exchange National Bncshrs MO CNS Bncrp, Inc. MO 93,091 23.12 0.74 3.24 0.21
10/18/1999 04/10/2000 FNB Corp. NC Carolina Fincorp, Inc. NC 119,155 13.22 0.80 5.99 0.17
Rsrvs/ Deal
Announce Complete NPLs Value
Date Date Buyer Short Name ST Target Name ST (%) ($M)
- ---------- ---------- ----------------------------- -- ----------------------------- -- --- ---
12/15/2000 Pending CKF Bncrp Inc. KY First Lancaster Bncshrs, Inc. KY 146.72 13.8
12/11/2000 Pending FBOP Corp. IL PBOC Hldgs, Inc. CA NA 193.0
12/09/2000 Pending United Cmmnty Finl Corp. OH Industrial Bncrp, Inc. OH 172.26 91.8
12/07/2000 Pending Platte Valley Fncl Service Co NE Tri-County Bncrp, Inc. WY 0.00 11.7
11/24/2000 Pending Hudson River Bncrp NY Cohoes Bncrp Inc. NY 126.70 160.7
11/02/2000 Pending PSB Bncrp Inc. PA Jade Fin Corp. PA NA 25.4
10/25/2000 Pending DFC Acquisition Corp. Two MO Hardin Bncrp, Inc. MO 186.11 16.9
10/20/2000 Pending First Bncrp NC Century Bncrp, Inc. NC 313.37 21.7
10/06/2000 Pending DFC Acquisition Corp. Two MO Cameron Fin Corp MO NA 40.9
09/20/2000 Pending Union Planters Corp. TN Jefferson Svngs Bncrp, Inc. MO 83.16 146.1
09/20/2000 Pending Glacier Bncrp Inc. MT WesterFed Fin Corp MT 222.56 99.7
09/19/2000 Pending Peoples Cmmnty Bncrp Inc. OH Market Fin Corp OH 0.00 16.8
09/06/2000 Pending BB&T Corp. NC FirstSpartan Fin Corp. SC 88.60 102.1
08/31/2000 12/08/2000 Fifth Third Bncrp OH Ottawa Fin Corp MI 172.30 169.7
08/25/2000 Pending United Bncshrs Inc. OH Delphos Citizens Bncrp, Inc. OH 0.00 20.7
08/21/2000 Pending Washington Mutual Inc. WA Bank United Corp TX 102.98 1,526.5
08/16/2000 Pending Berkshire Bncrp Inc. NY GSB Fin Corp NY 0.00 41.8
08/08/2000 Pending FNB Corp. VA SWVA Bncshrs, Inc. VA 0.00 8.7
07/26/2000 11/15/2000 Allegiant Bncrp Inc. MO Equality Bncrp, Inc. MO 50.77 24.0
07/21/2000 12/31/2000 Seacoast Fin Services MA Home Port Bncrp, Inc. MA 0.00 68.5
07/18/2000 11/20/2000 Citco Cmmnty Bkshrs, Inc. TN Twin City Bncrp, Inc. TN 0.00 20.2
06/27/2000 12/01/2000 Queens County Bncrp Inc. NY Haven Bncrp, Inc. NY 237.06 186.5
06/16/2000 10/13/2000 Old Kent Fin Corp. MI Home Bncrp IN 0.00 39.0
06/08/2000 11/10/2000 Troy Fin Corp. NY Catskill Fin Corp NY NA 89.9
06/05/2000 08/22/2000 Greater Atlantic Financial VA Dominion SB, FSB VA 59.16 1.1
06/02/2000 11/09/2000 Northeast PA Fin Corp. PA Security-PA Fin Corp. PA 20.14 24.9
05/31/2000 11/10/2000 NewMil Bncrp Inc. CT Nutmeg FS&LA CT 72.84 19.9
05/16/2000 11/13/2000 Patapsco Bncrp Inc. MD Northfield Bncrp, Inc. MD 0.00 8.8
05/15/2000 10/31/2000 First United Bncshrs Inc. AR Texarkana First Fin Corp AR 238.78 37.5
05/04/2000 08/31/2000 Provident Bnkshrs Corp. MD Harbor Fed Bncrp, Inc. MD 84.79 31.2
04/25/2000 10/02/2000 Prudential Plc Highland Bncrp, Inc. CA 287.98 113.5
03/28/2000 10/17/2000 Harris Fin MHC PA York Fin Corp. PA 281.45 179.5
03/28/2000 09/01/2000 Union Bnkshrs Co. ME Mid-Coast Bncrp, Inc. ME NA 12.1
03/21/2000 09/26/2000 Lincoln Bncrp IN Citizens Bncrp IN 90.21 17.9
03/15/2000 07/31/2000 Richmond County Fin Corp NY So Jersey Fin Corp, Inc. NJ NA 70.2
02/22/2000 11/02/2000 Mutual SB WI First Northern Cptl Corp WI 505.28 133.4
02/18/2000 07/14/2000 Fidelity Bncrp Inc. PA Pennwood Bncrp, Inc. PA 114.68 7.5
02/17/2000 07/19/2000 Sound Fed Bncrp (MHC) NY Peekskill Fin Corp NY 115.57 41.6
02/14/2000 07/31/2000 SouthBanc Shares Inc. SC Heritage Bncrp, Inc. SC NA 77.0
01/13/2000 06/20/2000 BancFirst Ohio Corp. OH Milton Fed Fin Corp OH 287.59 33.8
12/29/1999 07/07/2000 Niagara Bncrp Inc. (MHC) NY CNY Fin Corp. NY 303.73 87.9
12/28/1999 04/11/2000 National Commerce Bncrp. TN Piedmont Bncrp, Inc. NC 107.33 32.1
12/21/1999 06/14/2000 Bank-Kentucky Finl Corp. KY Fort Thomas Fin Corp KY 28.49 28.4
12/16/1999 09/14/2000 First Bncrp NC First Svngs Bncrp, Inc. NC 188.01 77.9
12/03/1999 07/15/2000 Midland States Bncrp, Inc. IL CSB Fin Group, Inc. IL 88.84 11.9
12/02/1999 06/26/2000 Webster Fin Corp. CT MECH Financial, Inc. CT 425.25 206.2
11/17/1999 06/30/2000 East Texas Fin Services TX Gilmer Fin Services, Inc. TX 251.55 5.0
10/27/1999 06/16/2000 Exchange National Bncshrs MO CNS Bncrp, Inc. MO 253.59 25.6
10/18/1999 04/10/2000 FNB Corp. NC Carolina Fincorp, Inc. NC NA 29.1
Deal Terms and Pricing at Announcement
----------------------------------------
Price/
Announce Complete Share P/B P/TB P/E P/A
Date Date Buyer Short Name ST Target Name ($) Consid. (%) (%) (x) (%)
- ---------- ---------- ----------------------------- -- ----------------------------- --- ------- --- --- --- ---
12/15/2000 Pending CKF Bncrp Inc. KY First Lancaster Bncshrs, Inc. 16.27 Cash 107.18 107.18 28.05 24.16
12/11/2000 Pending FBOP Corp. IL PBOC Hldgs, Inc. 10.00 Cash 81.19 89.37 4.56 5.57
12/09/2000 Pending United Cmmnty Finl Corp. OH Industrial Bncrp, Inc. 20.38 Cash 153.89 153.89 15.21 22.08
12/07/2000 Pending Platte Valley Fncl Service Co NE Tri-County Bncrp, Inc. 12.60 Cash 107.23 107.23 22.11 12.00
11/24/2000 Pending Hudson River Bncrp NY Cohoes Bncrp Inc. 19.50 Cash 124.84 125.89 25.66 21.74
11/02/2000 Pending PSB Bncrp Inc. PA Jade Fin Corp. 13.55 Cash 91.68 91.68 26.06 11.88
10/25/2000 Pending DFC Acquisition Corp. Two MO Hardin Bncrp, Inc. 21.75 Cash 124.71 124.71 12.08 11.79
10/20/2000 Pending First Bncrp NC Century Bncrp, Inc. 19.60 Mixed 121.21 121.21 21.08 21.58
10/06/2000 Pending DFC Acquisition Corp. Two MO Cameron Fin Corp 20.75 Cash 99.66 99.66 18.69 13.67
09/20/2000 Pending Union Planters Corp. TN Jefferson Svngs Bncrp, Inc. 14.32 Stock 111.80 131.05 12.34 8.94
09/20/2000 Pending Glacier Bncrp Inc. MT WesterFed Fin Corp 23.14 Mixed 106.70 133.01 12.51 10.54
09/19/2000 Pending Peoples Cmmnty Bncrp Inc. OH Market Fin Corp 13.00 Mixed 112.26 112.26 43.33 30.04
09/06/2000 Pending BB&T Corp. NC FirstSpartan Fin Corp. 26.88 Stock 144.10 144.10 15.18 17.43
08/31/2000 12/08/2000 Fifth Third Bncrp OH Ottawa Fin Corp 23.96 Stock 198.04 230.41 16.88 15.65
08/25/2000 Pending United Bncshrs Inc. OH Delphos Citizens Bncrp, Inc. 13.07 Mixed 80.40 80.40 12.21 15.55
08/21/2000 Pending Washington Mutual Inc. WA Bank United Corp 42.66 Mixed 167.35 185.06 11.62 8.39
08/16/2000 Pending Berkshire Bncrp Inc. NY GSB Fin Corp 20.87 Mixed 140.89 140.89 19.68 22.37
08/08/2000 Pending FNB Corp. VA SWVA Bncshrs, Inc. 20.25 Mixed 129.48 129.48 19.85 10.47
07/26/2000 11/15/2000 Allegiant Bncrp Inc. MO Equality Bncrp, Inc. 9.85 Stock 118.00 118.00 20.11 7.42
07/21/2000 12/31/2000 Seacoast Fin Services MA Home Port Bncrp, Inc. 37.00 Cash 241.99 241.99 12.89 20.86
07/18/2000 11/20/2000 Citco Cmmnty Bkshrs, Inc. TN Twin City Bncrp, Inc. 17.15 Cash 139.77 139.77 16.65 16.67
06/27/2000 12/01/2000 Queens County Bncrp Inc. NY Haven Bncrp, Inc. 19.24 Stock 169.07 171.33 17.49 6.29
06/16/2000 10/13/2000 Old Kent Fin Corp. MI Home Bncrp 19.59 Stock 104.11 104.11 12.98 9.67
06/08/2000 11/10/2000 Troy Fin Corp. NY Catskill Fin Corp 23.00 Cash 153.23 153.23 18.55 25.98
06/05/2000 08/22/2000 Greater Atlantic Financial VA Dominion SB, FSB 3.13 Cash 116.20 116.20 NM 2.53
06/02/2000 11/09/2000 Northeast PA Fin Corp. PA Security-PA Fin Corp. 17.50 Cash 122.12 122.12 25.74 18.53
05/31/2000 11/10/2000 NewMil Bncrp Inc. CT Nutmeg FS&LA 8.25 Mixed 187.82 187.82 15.08 16.33
05/16/2000 11/13/2000 Patapsco Bncrp Inc. MD Northfield Bncrp, Inc. 18.50 Mixed 123.43 123.43 30.97 16.19
05/15/2000 10/31/2000 First United Bncshrs Inc. AR Texarkana First Fin Corp 23.35 Cash 131.12 131.12 10.96 18.16
05/04/2000 08/31/2000 Provident Bnkshrs Corp. MD Harbor Fed Bncrp, Inc. 17.98 Stock 117.34 117.34 14.62 12.33
04/25/2000 10/02/2000 Prudential Plc Highland Bncrp, Inc. 25.45 Cash 224.03 224.03 11.31 17.33
03/28/2000 10/17/2000 Harris Fin MHC PA York Fin Corp. 17.25 Stock 158.11 158.11 19.17 11.61
03/28/2000 09/01/2000 Union Bnkshrs Co. ME Mid-Coast Bncrp, Inc. 15.88 Cash 215.69 215.69 26.91 15.83
03/21/2000 09/26/2000 Lincoln Bncrp IN Citizens Bncrp 18.52 Mixed 120.16 120.16 20.13 29.40
03/15/2000 07/31/2000 Richmond County Fin Corp NY So Jersey Fin Corp, Inc. 20.00 Cash 115.94 115.94 NM 20.98
02/22/2000 11/02/2000 Mutual SB WI First Northern Cptl Corp 15.00 Mixed 168.35 168.35 18.52 16.59
02/18/2000 07/14/2000 Fidelity Bncrp Inc. PA Pennwood Bncrp, Inc. 13.10 Cash 114.66 114.66 34.59 14.00
02/17/2000 07/19/2000 Sound Fed Bncrp (MHC) NY Peekskill Fin Corp 22.00 Cash 150.79 150.79 28.95 20.08
02/14/2000 07/31/2000 SouthBanc Shares Inc. SC Heritage Bncrp, Inc. 17.65 Mixed 104.75 104.75 31.52 24.58
01/13/2000 06/20/2000 BancFirst Ohio Corp. OH Milton Fed Fin Corp 15.85 Mixed 135.05 135.05 19.81 13.17
12/29/1999 07/07/2000 Niagara Bncrp Inc. (MHC) NY CNY Fin Corp. 18.75 Cash 130.03 130.03 27.57 29.67
12/28/1999 04/11/2000 National Commerce Bncrp. TN Piedmont Bncrp, Inc. 12.52 Stock 162.39 162.39 30.54 22.90
12/21/1999 06/14/2000 Bank-Kentucky Finl Corp. KY Fort Thomas Fin Corp 18.40 Stock 202.19 202.19 30.67 28.25
12/16/1999 09/14/2000 First Bncrp NC First Svngs Bncrp, Inc. 21.20 Stock 115.64 115.64 16.06 24.87
12/03/1999 07/15/2000 Midland States Bncrp, Inc. IL CSB Fin Group, Inc. 16.00 Cash 115.11 121.77 41.03 24.73
12/02/1999 06/26/2000 Webster Fin Corp. CT MECH Financial, Inc. 39.52 Stock 214.90 216.43 16.61 18.79
11/17/1999 06/30/2000 East Texas Fin Services TX Gilmer Fin Services, Inc. 26.10 Cash 122.59 122.59 22.12 12.87
10/27/1999 06/16/2000 Exchange National Bncshrs MO CNS Bncrp, Inc. 17.80 Mixed 117.26 117.26 34.23 27.50
10/18/1999 04/10/2000 FNB Corp. NC Carolina Fincorp, Inc. 15.01 Stock 178.48 178.48 27.80 24.41
Control Premium
-----------------------------------------
Prems/ Relative to Previous Trading Price
----------------------------------
Announce Complete Deps 1 Day 1 Month 3 Month 1 Year
Date Date Buyer Short Name ST Target Name (%) (%) (%) (%) (%)
- ---------- ---------- ----------------------------- -- ----------------------------- --- --- --- --- ---
12/15/2000 Pending CKF Bncrp Inc. KY First Lancaster Bncshrs, Inc. 4.13 32.82 41.48 54.95 35.58
12/11/2000 Pending FBOP Corp. IL PBOC Hldgs, Inc. -1.35 8.84 45.45 25.00 15.94
12/09/2000 Pending United Cmmnty Finl Corp. OH Industrial Bncrp, Inc. 13.49 38.14 65.48 66.33 27.34
12/07/2000 Pending Platte Valley Fncl Service Co NE Tri-County Bncrp, Inc. 3.21 36.22 47.15 27.59 20.72
11/24/2000 Pending Hudson River Bncrp NY Cohoes Bncrp Inc. 8.28 14.71 14.71 24.30 72.38
11/02/2000 Pending PSB Bncrp Inc. PA Jade Fin Corp. NM 15.32 14.71 12.92 66.77
10/25/2000 Pending DFC Acquisition Corp. Two MO Hardin Bncrp, Inc. 5.45 8.75 35.94 42.62 31.82
10/20/2000 Pending First Bncrp NC Century Bncrp, Inc. 6.89 37.54 29.59 35.17 50.77
10/06/2000 Pending DFC Acquisition Corp. Two MO Cameron Fin Corp 0.83 18.57 16.08 26.72 63.55
09/20/2000 Pending Union Planters Corp. TN Jefferson Svngs Bncrp, Inc. 3.87 26.55 43.16 30.89 21.84
09/20/2000 Pending Glacier Bncrp Inc. MT WesterFed Fin Corp 5.65 46.95 48.12 65.31 36.14
09/19/2000 Pending Peoples Cmmnty Bncrp Inc. OH Market Fin Corp 5.97 36.84 48.57 66.40 33.33
09/06/2000 Pending BB&T Corp. NC FirstSpartan Fin Corp. 9.42 31.90 45.27 51.41 23.56
08/31/2000 12/08/2000 Fifth Third Bncrp OH Ottawa Fin Corp 14.77 16.89 48.61 38.28 16.18
08/25/2000 Pending United Bncshrs Inc. OH Delphos Citizens Bncrp, Inc. -8.01 -1.40 7.75 -3.22 -27.42
08/21/2000 Pending Washington Mutual Inc. WA Bank United Corp 11.65 0.67 15.88 34.09 17.27
08/16/2000 Pending Berkshire Bncrp Inc. NY GSB Fin Corp 13.10 29.91 27.43 36.27 48.38
08/08/2000 Pending FNB Corp. VA SWVA Bncshrs, Inc. 3.55 149.23 113.16 113.16 51.40
07/26/2000 11/15/2000 Allegiant Bncrp Inc. MO Equality Bncrp, Inc. 3.13 12.61 29.22 48.72 19.43
07/21/2000 12/31/2000 Seacoast Fin Services MA Home Port Bncrp, Inc. 22.69 46.17 55.79 64.44 49.49
07/18/2000 11/20/2000 Citco Cmmnty Bkshrs, Inc. TN Twin City Bncrp, Inc. 8.17 11.09 12.46 59.53 29.43
06/27/2000 12/01/2000 Queens County Bncrp Inc. NY Haven Bncrp, Inc. 4.53 9.16 12.35 29.34 32.69
06/16/2000 10/13/2000 Old Kent Fin Corp. MI Home Bncrp 0.50 3.81 32.84 22.46 -28.75
06/08/2000 11/10/2000 Troy Fin Corp. NY Catskill Fin Corp 17.09 30.04 55.27 106.74 41.54
06/05/2000 08/22/2000 Greater Atlantic Financial VA Dominion SB, FSB 0.43 -3.69 2.20 -19.23 NA
06/02/2000 11/09/2000 Northeast PA Fin Corp. PA Security-PA Fin Corp. 6.23 60.92 59.09 89.19 83.01
05/31/2000 11/10/2000 NewMil Bncrp Inc. CT Nutmeg FS&LA 10.08 -1.12 6.45 0.00 10.00
05/16/2000 11/13/2000 Patapsco Bncrp Inc. MD Northfield Bncrp, Inc. 5.44 23.85 39.62 51.02 72.09
05/15/2000 10/31/2000 First United Bncshrs Inc. AR Texarkana First Fin Corp 7.63 12.54 45.95 31.56 -4.69
05/04/2000 08/31/2000 Provident Bnkshrs Corp. MD Harbor Fed Bncrp, Inc. 3.64 26.15 38.28 41.00 14.14
04/25/2000 10/02/2000 Prudential Plc Highland Bncrp, Inc. 20.76 47.54 51.94 46.47 35.06
03/28/2000 10/17/2000 Harris Fin MHC PA York Fin Corp. 7.79 17.95 56.82 53.33 26.00
03/28/2000 09/01/2000 Union Bnkshrs Co. ME Mid-Coast Bncrp, Inc. 25.13 164.58 128.83 124.78 126.02
03/21/2000 09/26/2000 Lincoln Bncrp IN Citizens Bncrp 11.22 51.15 51.15 52.71 66.44
03/15/2000 07/31/2000 Richmond County Fin Corp NY So Jersey Fin Corp, Inc. 5.99 18.52 28.00 42.86 78.77
02/22/2000 11/02/2000 Mutual SB WI First Northern Cptl Corp 11.73 66.67 64.38 31.87 30.43
02/18/2000 07/14/2000 Fidelity Bncrp Inc. PA Pennwood Bncrp, Inc. 2.90 69.03 87.14 87.14 19.09
02/17/2000 07/19/2000 Sound Fed Bncrp (MHC) NY Peekskill Fin Corp 11.12 83.33 83.33 69.23 57.14
02/14/2000 07/31/2000 SouthBanc Shares Inc. SC Heritage Bncrp, Inc. 51.66 33.21 23.86 6.97 -18.85
01/13/2000 06/20/2000 BancFirst Ohio Corp. OH Milton Fed Fin Corp 5.85 37.80 39.31 32.06 9.29
12/29/1999 07/07/2000 Niagara Bncrp Inc. (MHC) NY CNY Fin Corp. 11.20 11.52 23.97 30.43 87.50
12/28/1999 04/11/2000 National Commerce Bncrp. TN Piedmont Bncrp, Inc. 14.12 69.76 51.76 64.20 38.15
12/21/1999 06/14/2000 Bank-Kentucky Finl Corp. KY Fort Thomas Fin Corp 22.72 26.89 35.04 26.89 36.29
12/16/1999 09/14/2000 First Bncrp NC First Svngs Bncrp, Inc. 6.99 14.96 5.32 3.40 -3.65
12/03/1999 07/15/2000 Midland States Bncrp, Inc. IL CSB Fin Group, Inc. 6.51 42.22 50.59 58.02 62.03
12/02/1999 06/26/2000 Webster Fin Corp. CT MECH Financial, Inc. 19.37 14.55 23.02 8.27 41.46
11/17/1999 06/30/2000 East Texas Fin Services TX Gilmer Fin Services, Inc. 3.65 93.33 93.33 93.33 53.53
10/27/1999 06/16/2000 Exchange National Bncshrs MO CNS Bncrp, Inc. 6.34 58.22 54.78 65.58 39.61
10/18/1999 04/10/2000 FNB Corp. NC Carolina Fincorp, Inc. 14.89 31.96 58.00 59.05 87.63
*** CONFIDENTIAL *** 1
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/
Announce Complete Assets Assets ROAA ROAE Assets
Date Date Buyer Short Name ST Target Name ST ($000) (%) (%) (%) (%)
---- ---------- ---------------- -- ----------- -- ----- --- --- --- ----
10/01/1999 03/29/2000 People's Cmmnty Bank OH Harvest Home Fin Corp OH 100,253 9.80 0.52 5.09 0.08
09/21/1999 03/01/2000 Peoples Bncrp IN Three Rivers Fin Corp. MI 97,657 11.52 0.61 4.93 0.86
08/30/1999 02/22/2000 North Fork Bncrp. NY Reliance Bncrp, Inc. NY 2,451,773 7.00 0.81 11.15 0.26
08/30/1999 03/24/2000 Niagara Bncrp Inc. (MHC) NY Albion Banc Corp. NY 78,711 8.26 0.33 3.96 0.29
08/16/1999 03/01/2000 North Fork Bncrp. NY JSB Financial, Inc. NY 1,613,148 22.95 1.85 7.98 0.14
08/16/1999 02/07/2000 Provident Fin Group Inc. OH Fidelity Fin-Ohio, Inc. OH 808,551 12.03 0.20 1.68 NA
08/09/1999 12/01/1999 NewSo Bncrp Inc. NC Green Street Fin Corp. NC 166,433 34.99 1.54 4.38 0.17
08/06/1999 01/06/2000 Camco Fin Corp. OH Westwood Hmstd Fin Corp OH 141,401 16.11 0.97 5.44 0.06
08/05/1999 02/15/2000 Century So Banks Inc. GA Haywood Bncshrs, Inc. NC 149,070 14.61 1.05 7.28 0.68
08/03/1999 01/19/2000 Uwharrie Cptl Corp NC Anson Bncrp, Inc. NC 24,943 38.34 0.68 1.80 0.00
08/03/1999 12/03/1999 Provident Fin Group Inc. OH OHSL Fin Corp. OH 276,757 9.85 0.86 8.57 0.02
07/27/1999 12/20/1999 Camden National Corp. ME KSB Bncrp, Inc. ME 179,333 7.90 1.08 13.49 0.00
07/21/1999 02/10/2000 ESB Fin Corp. PA SHS Bncrp, Inc. PA 90,439 12.94 0.64 4.95 1.35
07/13/1999 07/03/2000 IndyMac Mortgage Hldgs Inc. CA SGV Bncrp, Inc. CA 464,500 6.89 0.56 8.02 0.74
07/08/1999 11/19/1999 First M & F Corp. MS Cmmnty Fed Bncrp, Inc. MS 305,408 19.16 1.04 5.13 0.35
07/01/1999 11/12/1999 Union Fin Bcshs Inc. SC SC Cmmnty Bcshrs, Inc. SC 45,429 20.00 0.95 4.60 2.79
06/30/1999 10/29/1999 First Busey Corp. IL Eagle BancGroup, Inc. IL 182,947 10.68 0.44 4.05 0.58
05/26/1999 10/15/1999 Local Fin Corp. OK Guthrie Svngs, Inc. OK 46,374 15.88 0.83 5.32 2.62
05/19/1999 12/15/1999 Central BanCo MO Fulton Bncrp, Inc. MO 117,770 21.58 0.94 4.23 0.92
05/17/1999 10/01/1999 Charter One Financial OH St. Paul Bncrp, Inc. IL 5,980,486 8.30 0.99 11.80 NA
05/17/1999 09/03/1999 Hudson River Bncrp NY SFS Bncrp, Inc. NY 178,167 13.25 1.20 9.74 0.56
05/03/1999 10/12/1999 Citizens Bncshrs Co. MO MBLA Fin Corp. MO 208,076 13.63 0.93 6.82 0.72
04/28/1999 11/19/1999 BB&T Corp. NC First Liberty Fin Corp. GA 1,588,043 7.85 1.20 15.11 0.74
04/14/1999 10/04/1999 CCB Fin Corp. NC Stone Street Bncrp, Inc. NC 127,273 22.38 1.37 5.40 0.00
04/13/1999 01/07/2000 Independence Comm. Bank Corp. NY Statewide Fin Corp. NJ 717,517 8.43 0.54 5.65 0.38
03/24/1999 09/15/1999 Independent Bank Corp. MI Mutual SB, FSB MI 564,434 6.40 0.43 7.76 0.09
03/01/1999 08/06/1999 Fifth Third Bncrp OH Emerald Fin Corp OH 668,459 8.20 1.24 14.83 0.26
02/24/1999 07/09/1999 Old Kent Fin Corp. MI CFSB Bncrp, Inc. MI 880,347 7.87 1.39 17.64 0.18
02/17/1999 03/22/2000 Otto Bremer Foundation MN Northwest Equity Corp WI 99,187 12.11 1.07 8.88 0.72
02/04/1999 08/31/1999 NBC Cptl Corp. MS FFBS Bncrp, Inc. MS 155,731 15.19 1.04 6.80 0.03
02/02/1999 09/30/1999 Mahaska Investment Co. IA Midwest Bncshrs, Inc. IA 160,583 7.36 0.89 12.52 0.54
01/27/1999 07/09/1999 BB&T Corp. NC First Citizens Corp GA 385,582 10.13 1.38 13.76 1.18
01/25/1999 07/01/1999 BSB Bncrp Inc. NY Skaneateles Bncrp Inc. NY 271,527 6.91 0.60 8.70 1.58
01/05/1999 06/07/1999 Anchor Bncrp Wisconsin WI FCB Fin Corp. WI 534,928 14.18 1.31 9.03 0.24
12/17/1998 07/19/1999 Sky Fin Group Inc. OH Wood Bncrp, Inc. OH 166,839 13.87 1.51 11.01 0.02
12/16/1998 05/21/1999 Dime Bncrp Inc. NY Lakeview Fin Corp. NJ 593,856 9.53 1.74 17.17 0.56
12/01/1998 05/17/1999 Republic Bncrp Inc. MI D & N Fin Corp MI 1,998,299 5.60 0.85 15.28 0.50
11/18/1998 08/02/1999 Crown Group Inc. FL Delaware First Fin Corp DE 101,057 15.93 0.01 0.07 0.38
11/16/1998 06/30/1999 Temple-Inland, Inc. TX HF Bncrp, Inc. CA 1,059,600 7.92 0.07 0.86 NA
10/28/1998 03/29/1999 Centura Banks Inc. NC First Coastal Bnkshrs, Inc. VA 603,753 7.50 0.65 9.21 0.47
10/21/1998 04/01/1999 Southwest Bncrp.-Texas TX Fort Bend Hldg Corp. TX 318,348 7.15 0.71 10.28 0.27
10/15/1998 03/31/1999 Kearny FSB NJ 1st Bergen Bncrp NJ 300,755 11.60 0.70 5.69 0.96
09/29/1998 03/31/1999 Cptl Bank Corp. NC Home SB-Siler City, Inc. SSB NC 58,813 16.70 0.49 2.91 0.08
09/25/1998 05/14/1999 Fifth Third Bncrp OH Enterprise Fed Bncrp, Inc. OH 406,893 9.00 0.76 7.43 0.03
09/22/1998 03/31/1999 United National Bncrp NJ Raritan Bncrp, Inc. NJ 434,606 7.33 0.97 12.83 0.43
09/09/1998 04/30/1999 FBOP Corp. IL Calumet Bncrp, Inc. IL 491,961 17.74 2.21 12.86 1.21
09/08/1998 06/30/1999 Sovereign Bncrp Inc. PA Peoples Bncrp, Inc. NJ 873,466 39.08 1.35 6.16 0.65
08/26/1998 02/05/1999 Centura Banks Inc. NC Scotland Bncrp, Inc. NC 61,082 24.93 0.96 3.95 0.00
08/17/1998 12/31/1998 MAF Bncrp Inc. IL Westco Bncrp, Inc. IL 320,295 15.66 1.40 9.03 0.44
Deal Terms and Pricing at Announcement
---------------------------------------------------------------------------------
Rsrvs/ Deal Price/ Prem/ Relative
--------
Announce Complete NPLs Value Share P/B P/TB P/E P/A Deps 1 Day
Date Date Buyer Short Name (%) ($M) ($) Consid. (%) (%) (x) (%) (%) (%)
---- ---- ---------------- --- ---- --- ------ --- --- --- --- --- ---
10/01/1999 03/29/2000 People's Cmmnty Bank 172.15 16.5 18.00 Mixed 160.43 160.43 31.03 16.46 10.64 25.22
09/21/1999 03/01/2000 Peoples Bncrp 62.50 13.4 18.36 Stock 122.32 122.73 20.63 13.72 3.67 66.91
08/30/1999 02/22/2000 North Fork Bncrp. 144.72 354.4 38.13 Stock 199.06 291.37 16.87 14.45 17.25 12.55
08/30/1999 03/24/2000 Niagara Bncrp Inc. (MHC) 167.08 12.4 15.75 Cash 182.50 182.50 40.38 15.75 10.47 27.27
08/16/1999 03/01/2000 North Fork Bncrp. NA 592.6 61.31 Stock 153.86 153.86 13.84 36.80 23.56 4.36
08/16/1999 02/07/2000 Provident Fin Group Inc. NA 194.5 21.00 Stock 197.00 211.69 42.86 24.06 19.22 70.56
08/09/1999 12/01/1999 NewSo Bncrp Inc. 105.81 60.9 15.25 Cash 101.60 101.60 21.48 36.59 2.86 16.19
08/06/1999 01/06/2000 Camco Fin Corp. 364.37 27.3 12.69 Mixed 120.81 120.81 20.80 19.31 5.85 23.76
08/05/1999 02/15/2000 Century So Banks Inc. 76.37 26.6 21.30 Mixed 122.27 126.11 NM 17.84 5.33 50.80
08/03/1999 01/19/2000 Uwharrie Cptl Corp NA 10.1 17.30 Cash 105.81 105.81 59.66 40.49 3.84 42.68
08/03/1999 12/03/1999 Provident Fin Group Inc. NA 57.0 22.50 Stock 209.85 209.85 25.57 20.60 15.65 47.54
07/27/1999 12/20/1999 Camden National Corp. NA 31.0 22.65 Stock 203.50 224.04 15.51 17.29 14.96 61.79
07/21/1999 02/10/2000 ESB Fin Corp. 37.87 13.9 17.36 Mixed 114.65 114.65 31.00 15.37 3.36 57.80
07/13/1999 07/03/2000 IndyMac Mortgage Hldgs Inc. 93.07 58.6 25.00 Cash 170.07 171.70 25.25 12.62 11.26 17.65
07/08/1999 11/19/1999 First M & F Corp. 82.05 79.3 18.27 Mixed 133.24 133.24 23.42 25.97 18.07 32.85
07/01/1999 11/12/1999 Union Fin Bcshs Inc. 25.50 9.6 17.50 Mixed 103.80 103.80 23.03 21.13 1.87 22.81
06/30/1999 10/29/1999 First Busey Corp. 283.57 27.1 25.74 Cash 140.66 140.66 30.28 14.81 6.35 17.00
05/26/1999 10/15/1999 Local Fin Corp. 28.75 9.3 22.25 Cash 126.82 126.82 20.80 20.14 5.81 48.33
05/19/1999 12/15/1999 Central BanCo 127.39 31.6 19.15 Cash 124.59 124.59 29.02 26.83 9.86 12.65
05/17/1999 10/01/1999 Charter One Financial NA 1,209.8 28.62 Stock 229.66 230.77 38.15 20.23 21.45 16.06
05/17/1999 09/03/1999 Hudson River Bncrp 131.45 31.8 25.10 Cash 128.45 128.45 13.72 17.85 6.00 16.07
05/03/1999 10/12/1999 Citizens Bncshrs Co. 48.39 31.1 24.15 Cash 106.20 106.20 16.54 14.95 2.62 38.99
04/28/1999 11/19/1999 BB&T Corp. 179.49 488.9 33.25 Stock 366.90 397.87 27.76 29.41 38.29 43.01
04/14/1999 10/04/1999 CCB Fin Corp. NA 38.7 21.37 Mixed 126.98 126.98 24.01 30.41 15.86 65.98
04/13/1999 01/07/2000 Independence Comm. Bank Corp. 139.35 107.0 25.32 Mixed 173.75 173.99 29.44 14.91 12.15 19.48
03/24/1999 09/15/1999 Independent Bank Corp. NA 61.6 14.60 Stock 173.40 173.40 23.93 10.91 6.56 52.68
03/01/1999 08/06/1999 Fifth Third Bncrp 102.24 222.6 19.82 Stock 371.84 375.36 27.53 33.30 35.46 36.68
02/24/1999 07/09/1999 Old Kent Fin Corp. NM 243.2 28.27 Stock 332.99 332.99 20.49 27.63 31.68 48.09
02/17/1999 03/22/2000 Otto Bremer Foundation 64.99 21.2 24.00 Cash 164.95 164.95 18.32 21.37 15.10 28.00
02/04/1999 08/31/1999 NBC Cptl Corp. NA 47.4 29.27 Stock 188.10 188.10 29.27 30.44 23.77 8.40
02/02/1999 09/30/1999 Mahaska Investment Co. 236.18 18.8 16.88 Stock 151.07 151.07 12.88 11.71 7.06 43.62
01/27/1999 07/09/1999 BB&T Corp. 85.81 126.7 41.47 Stock 297.92 360.62 23.43 32.86 32.32 37.66
01/25/1999 07/01/1999 BSB Bncrp Inc. 80.43 42.5 27.89 Stock 215.19 219.94 26.56 15.65 11.45 46.78
01/05/1999 06/07/1999 Anchor Bncrp Wisconsin 297.55 175.1 44.15 Stock 223.20 223.20 24.53 32.73 35.13 57.68
12/17/1998 07/19/1999 Sky Fin Group Inc. NA 59.2 20.57 Stock 239.22 239.22 23.65 35.48 32.89 29.59
12/16/1998 05/21/1999 Dime Bncrp Inc. 160.27 118.7 22.68 Mixed 195.49 291.48 9.95 19.99 18.91 3.08
12/01/1998 05/17/1999 Republic Bncrp Inc. 119.13 293.6 30.15 Stock 246.69 265.13 18.16 14.69 17.92 30.71
11/18/1998 08/02/1999 Crown Group Inc. 162.02 17.9 15.50 Cash 111.35 111.35 NM 17.71 3.12 51.22
11/16/1998 06/30/1999 Temple-Inland, Inc. NA 122.7 18.50 Mixed 140.90 163.28 NM 11.58 6.68 8.82
10/28/1998 03/29/1999 Centura Banks Inc. NA 124.9 23.80 Stock 262.11 262.11 28.33 20.69 24.65 27.79
10/21/1998 04/01/1999 Southwest Bncrp.-Texas 199.63 63.2 21.75 Stock 173.72 183.70 23.14 19.85 18.47 14.47
10/15/1998 03/31/1999 Kearny FSB 111.28 64.7 24.00 Cash 177.91 177.91 28.57 21.51 14.22 33.33
09/29/1998 03/31/1999 Cptl Bank Corp. NM 14.7 15.68 Stock 147.37 147.37 58.07 24.99 10.89 33.45
09/25/1998 05/14/1999 Fifth Third Bncrp NM 104.0 43.51 Stock 283.92 402.21 34.31 19.05 33.60 50.03
09/22/1998 03/31/1999 United National Bncrp 186.77 97.7 38.24 Stock 284.98 288.42 24.36 22.48 20.00 15.89
09/09/1998 04/30/1999 FBOP Corp. 159.68 110.5 32.00 Cash 115.36 115.36 11.47 22.46 7.14 18.52
09/08/1998 06/30/1999 Sovereign Bncrp Inc. 75.14 379.4 10.50 Stock 111.70 115.13 44.98 43.44 11.43 26.31
08/26/1998 02/05/1999 Centura Banks Inc. NA 22.7 11.75 Cash 147.61 147.61 23.50 37.16 18.18 29.65
08/17/1998 12/31/1998 MAF Bncrp Inc. 63.73 82.6 30.86 Stock 152.94 152.94 17.54 25.79 14.39 14.31
Control Premium
------------------------------
to Previous Trading Price
------------------------------
Announce Complete 1 Month 3 Month 1 Year
Date Date Buyer Short Name (%) (%) (%)
---- ---- ---------------- ------- ------ ------
10/01/1999 03/29/2000 People's Cmmnty Bank 28.57 50.79 39.81
09/21/1999 03/01/2000 Peoples Bncrp 56.26 44.00 22.40
08/30/1999 02/22/2000 North Fork Bncrp. 37.70 35.56 52.50
08/30/1999 03/24/2000 Niagara Bncrp Inc. (MHC) 46.51 70.27 61.54
08/16/1999 03/01/2000 North Fork Bncrp. 10.48 18.48 19.64
08/16/1999 02/07/2000 Provident Fin Group Inc. 73.20 75.92 36.59
08/09/1999 12/01/1999 NewSo Bncrp Inc. 26.42 30.48 6.09
08/06/1999 01/06/2000 Camco Fin Corp. 22.27 22.27 1.48
08/05/1999 02/15/2000 Century So Banks Inc. 46.90 53.51 3.90
08/03/1999 01/19/2000 Uwharrie Cptl Corp 64.76 64.76 42.74
08/03/1999 12/03/1999 Provident Fin Group Inc. 51.26 50.00 42.86
07/27/1999 12/20/1999 Camden National Corp. 87.77 70.94 24.11
07/21/1999 02/10/2000 ESB Fin Corp. 78.03 57.80 8.49
07/13/1999 07/03/2000 IndyMac Mortgage Hldgs Inc. 31.58 129.89 37.93
07/08/1999 11/19/1999 First M & F Corp. 40.52 46.14 7.45
07/01/1999 11/12/1999 Union Fin Bcshs Inc. 25.00 18.64 -18.13
06/30/1999 10/29/1999 First Busey Corp. 24.05 13.77 34.59
05/26/1999 10/15/1999 Local Fin Corp. 30.88 17.11 NA
05/19/1999 12/15/1999 Central BanCo 41.85 25.57 -14.89
05/17/1999 10/01/1999 Charter One Financial 21.77 35.06 15.91
05/17/1999 09/03/1999 Hudson River Bncrp 36.60 30.81 11.56
05/03/1999 10/12/1999 Citizens Bncshrs Co. 30.10 15.69 -8.44
04/28/1999 11/19/1999 BB&T Corp. 56.01 66.25 38.54
04/14/1999 10/04/1999 CCB Fin Corp. 48.66 45.50 4.24
04/13/1999 01/07/2000 Independence Comm. Bank Corp 46.75 36.84 10.36
03/24/1999 09/15/1999 Independent Bank Corp. 49.74 64.51 16.80
03/01/1999 08/06/1999 Fifth Third Bncrp 52.45 84.36 79.15
02/24/1999 07/09/1999 Old Kent Fin Corp. 35.21 26.29 13.08
02/17/1999 03/22/2000 Otto Bremer Foundation 10.34 37.14 13.27
02/04/1999 08/31/1999 NBC Cptl Corp. 15.91 16.79 27.98
02/02/1999 09/30/1999 Mahaska Investment Co. 36.36 35.00 -1.46
01/27/1999 07/09/1999 BB&T Corp. 62.63 56.49 29.60
01/25/1999 07/01/1999 BSB Bncrp Inc. 95.71 108.51 44.87
01/05/1999 06/07/1999 Anchor Bncrp Wisconsin 44.75 83.95 43.57
12/17/1998 07/19/1999 Sky Fin Group Inc. 52.39 46.95 26.99
12/16/1998 05/21/1999 Dime Bncrp Inc. 14.82 -1.40 -10.19
12/01/1998 05/17/1999 Republic Bncrp Inc. 56.60 89.14 32.64
11/18/1998 08/02/1999 Crown Group Inc. 55.00 47.62 NA
11/16/1998 06/30/1999 Temple-Inland, Inc. 32.14 15.63 18.40
10/28/1998 03/29/1999 Centura Banks Inc. 70.00 44.24 57.36
10/21/1998 04/01/1999 Southwest Bncrp.-Texas 3.57 0.58 10.13
10/15/1998 03/31/1999 Kearny FSB 39.13 28.00 37.14
09/29/1998 03/31/1999 Cptl Bank Corp. 30.67 25.44 8.14
09/25/1998 05/14/1999 Fifth Third Bncrp 51.33 58.93 100.04
09/22/1998 03/31/1999 United National Bncrp 36.59 35.38 71.88
09/09/1998 04/30/1999 FBOP Corp. 5.79 -9.22 10.98
09/08/1998 06/30/1999 Sovereign Bncrp Inc. 18.31 5.00 33.85
08/26/1998 02/05/1999 Centura Banks Inc. 28.77 34.29 -37.13
08/17/1998 12/31/1998 MAF Bncrp Inc. 2.88 3.31 17.58
***Confidential***
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 at
-------------------------------
Total Equity/
Announce Complete Assets Assets ROAA
Date Date Buyer Short Name ST Target Name ST ($000) (%) (%)
---- ---- ---------------- -- ----------- -- ------ --- ---
08/17/1998 04/13/1999 First Fed Bnkshrs Inc. IA Mid-Iowa Fin Corp. IA 135,040 9.93 1.00
08/13/1998 12/31/1998 First Western Bank NC Mitchell Bncrp, Inc. NC 37,306 39.22 1.23
07/20/1998 03/22/1999 Richmond County Fin Corp NY Bayonne Bncshrs, Inc. NJ 646,058 15.27 0.72
07/20/1998 01/21/1999 Dime Cmmnty Bncshrs Inc. NY Financial Bncrp, Inc. NY 310,368 9.04 0.95
07/09/1998 12/18/1998 First Source Bncrp Inc. NJ Pulse Bncrp, Inc. NJ 540,008 8.34 1.02
07/02/1998 01/31/1999 Union Planters Corp. TN First Mutual Bncrp, Inc. IL 390,231 14.15 0.39
06/30/1998 01/22/1999 St. Francis Cptl Corp. WI Reliance Bncshrs, Inc. WI 44,174 49.96 1.28
06/15/1998 11/30/1998 Charter One Financial OH ALBANK Fin Corp NY 4,089,428 8.97 0.96
06/02/1998 12/15/1998 State Fin Services Corp. WI Home Bncrp-Elgin, Inc. IL 368,976 25.93 0.56
05/29/1998 10/16/1998 Valley National Bncrp NJ Wayne Bncrp, Inc. NJ 272,007 12.70 0.59
05/28/1998 10/29/1998 Republic Security Financial FL First Palm Beach Bncrp, Inc. FL 1,791,370 6.53 0.49
05/26/1998 02/17/1999 Roslyn SB NY TR Fin Corp. NY 4,005,695 6.15 0.99
05/18/1998 09/30/1998 First Charter Corp. NC HFNC Fin Corp. NC 979,554 17.24 1.48
05/07/1998 09/03/1998 Blackhawk Bncrp Inc. WI First Fin Bncrp, Inc. IL 82,117 9.40 0.34
05/07/1998 08/03/1998 Central Bncshrs, Inc. KY Pioneer Fin Corp KY 71,534 13.01 2.91
04/23/1998 11/16/1998 Ambanc Hldg Co. NY AFSALA Bncrp, Inc. NY 160,408 12.52 0.78
04/23/1998 11/13/1998 Sterling Fin Corp. WA Big Sky Bncrp, Inc. MT 62,103 12.49 0.90
04/03/1998 10/01/1998 Astoria Fin Corp. NY Long Island Bncrp, Inc. NY 6,072,524 9.18 0.87
03/31/1998 08/14/1998 Hudson United Bncrp NJ IBS Fin Corp. NJ 728,181 17.74 0.84
03/31/1998 08/21/1998 Hudson United Bncrp NJ Dime Fin Corp CT 958,503 8.27 1.94
03/17/1998 10/01/1998 Washington Mutual Inc. WA Ahmanson & Co (H.F.) CA 46,678,752 5.13 0.87
03/09/1998 08/14/1998 Commercial Fed Corp. NE First Colorado Bncrp, Inc. CO 1,555,274 13.46 1.31
03/06/1998 08/31/1998 U.S.B. Hldg Co. NY Tappan Zee Financial, Inc. NY 126,470 17.02 0.82
02/27/1998 06/26/1998 Blue River Bncshrs Inc. IN Shelby County Bncrp IN 97,221 7.70 0.74
02/25/1998 09/30/1998 BB&T Corp. NC Maryland Fed Bncrp, Inc. MD 1,184,294 8.66 0.83
02/18/1998 10/01/1998 United Bnkshrs Inc. WV Fed One Bncrp, Inc. WV 366,776 11.06 0.92
02/06/1998 06/30/1998 Signal Corp. OH First Shenango Bncrp, Inc. PA 374,972 12.76 1.15
01/27/1998 11/10/1998 Jackson National Life Ins Co. MI First FS&LA-San Bernardino CA 103,538 4.46 0.11
01/14/1998 06/26/1998 Fifth Third Bncrp OH CitFed Bncrp, Inc. OH 3,294,554 6.27 0.89
---------------------------------------------------------------------
Average: All Deals 1,128,234 13.35 0.88
Median: All Deals 296,294 11.85 0.86
---------------------------------------------------------------------
---------------------------------------------------------------------
Average: 2000 Deals 946,516 12.03 0.73
Median: 2000 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
---------------------------------------------------------------------
---------------------------------------------------------------------
Average: 1998 Deals 1,893,570 13.68 0.96
Median: 1998 Deals 300,755 12.11 0.90
---------------------------------------------------------------------
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. (%) (%)
---- ---- ---------------- --- --- --- ---- --- ------- --- ---
08/17/1998 04/13/1999 First Fed Bnkshrs Inc. 10.73 0.14 310.10 28.2 15.00 Cash 194.05 194.30
08/13/1998 12/31/1998 First Western Bank 2.99 1.54 86.58 19.0 20.00 Mixed 127.23 127.23
07/20/1998 03/22/1999 Richmond County Fin Corp 5.82 0.55 91.77 175.1 19.03 Stock 175.40 175.40
07/20/1998 01/21/1999 Dime Cmmnty Bncshrs Inc. 10.47 2.19 59.59 73.6 40.50 Mixed 246.50 247.56
07/09/1998 12/18/1998 First Source Bncrp Inc. 12.41 0.40 NA 106.4 32.00 Stock 221.15 221.15
07/02/1998 01/31/1999 Union Planters Corp. 2.80 0.24 241.43 67.9 18.50 Stock 127.41 164.58
06/30/1998 01/22/1999 St. Francis Cptl Corp. 2.58 0.00 NA 24.6 10.00 Mixed 107.41 107.41
06/15/1998 11/30/1998 Charter One Financial 10.81 0.72 118.45 1,075.8 73.58 Stock 257.80 329.64
06/02/1998 12/15/1998 State Fin Services Corp. 2.14 0.32 121.49 137.0 19.50 Stock 139.78 139.78
05/29/1998 10/16/1998 Valley National Bncrp 4.57 0.90 101.22 74.0 34.38 Stock 200.44 200.44
05/28/1998 10/29/1998 Republic Security Financial 7.61 0.55 87.12 299.1 55.05 Stock 237.88 243.14
05/26/1998 02/17/1999 Roslyn SB 16.05 0.51 80.17 1,114.1 56.63 Stock 403.07 403.07
05/18/1998 09/30/1998 First Charter Corp. 8.12 0.73 153.22 240.2 13.97 Stock 142.07 142.07
05/07/1998 09/03/1998 Blackhawk Bncrp Inc. 3.64 1.09 60.83 12.7 30.00 Cash 161.46 161.46
05/07/1998 08/03/1998 Central Bncshrs, Inc. 23.59 0.01 NA 20.5 98.50 Cash 220.46 220.46
04/23/1998 11/16/1998 Ambanc Hldg Co. 6.19 0.30 250.44 30.0 21.00 Stock 144.62 144.62
04/23/1998 11/13/1998 Sterling Fin Corp. 7.59 0.00 NA 12.4 35.47 Stock 148.08 148.08
04/03/1998 10/01/1998 Astoria Fin Corp. 9.59 0.89 73.47 1,765.7 69.36 Stock 299.09 301.83
03/31/1998 08/14/1998 Hudson United Bncrp 4.78 0.11 130.18 238.6 20.73 Stock 187.06 187.06
03/31/1998 08/21/1998 Hudson United Bncrp 24.20 0.29 539.86 210.8 38.25 Stock 249.19 255.85
03/17/1998 10/01/1998 Washington Mutual Inc. 17.14 1.73 58.49 9,907.0 80.36 Stock 390.67 457.63
03/09/1998 08/14/1998 Commercial Fed Corp. 9.92 0.15 223.19 529.4 30.00 Stock 240.96 245.90
03/06/1998 08/31/1998 U.S.B. Hldg Co. 4.78 1.19 45.98 33.8 22.00 Stock 151.10 151.10
02/27/1998 06/26/1998 Blue River Bncshrs Inc. 9.50 0.59 79.03 10.8 58.00 Cash 136.28 136.28
02/25/1998 09/30/1998 BB&T Corp. 9.83 0.42 135.21 254.6 37.05 Stock 233.87 236.26
02/18/1998 10/01/1998 United Bnkshrs Inc. 8.18 0.17 241.60 92.2 36.47 Stock 213.40 222.79
02/06/1998 06/30/1998 Signal Corp. 10.20 1.04 116.66 102.2 47.44 Stock 205.08 205.08
01/27/1998 11/10/1998 Jackson National Life Ins Co. 2.46 1.99 245.63 6.1 18.00 Cash 128.02 131.29
01/14/1998 06/26/1998 Fifth Third Bncrp 13.87 0.40 210.75 725.4 53.94 Stock 338.79 372.74
------------------------------------------------------------------------
7.49 0.52 140.86 220.52 25.44 170.52 177.37
7.57 0.34 115.57 58.60 20.87 151.07 152.94
------------------------------------------------------------------------
------------------------------------------------------------------------
5.92 0.36 123.06 98.65 18.69 135.86 138.54
6.60 0.22 90.21 38.25 18.51 124.07 127.69
------------------------------------------------------------------------
------------------------------------------------------------------------
7.58 0.60 149.50 116.20 23.70 172.14 177.84
6.80 0.37 117.36 32.10 21.30 160.43 160.43
------------------------------------------------------------------------
------------------------------------------------------------------------
8.80 0.59 150.00 433.27 33.28 200.45 212.21
7.61 0.43 120.31 63.20 22.65 173.40 173.40
------------------------------------------------------------------------
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) (%) (%) (%) (%) (%) (%)
---- ---- ---------------- --- --- --- --- --- --- ---
08/17/1998 04/13/1999 First Fed Bnkshrs Inc. 19.48 20.88 24.05 22.45 33.33 23.71 55.84
08/13/1998 12/31/1998 First Western Bank 40.00 50.93 28.50 24.03 21.21 18.52 19.40
07/20/1998 03/22/1999 Richmond County Fin Corp 39.98 27.10 20.39 11.13 19.88 10.32 -43.19
07/20/1998 01/21/1999 Dime Cmmnty Bncshrs Inc. 24.40 23.71 22.22 26.56 47.27 50.00 117.45
07/09/1998 12/18/1998 First Source Bncrp Inc. 18.18 19.70 15.05 12.28 15.32 15.84 58.02
07/02/1998 01/31/1999 Union Planters Corp. 46.25 17.40 8.33 5.71 4.96 -5.73 23.33
06/30/1998 01/22/1999 St. Francis Cptl Corp. 47.62 55.69 15.65 21.21 23.08 11.88 19.40
06/15/1998 11/30/1998 Charter One Financial 23.06 26.31 24.87 42.87 39.15 47.52 88.66
06/02/1998 12/15/1998 State Fin Services Corp. 51.32 37.13 16.84 13.87 11.43 6.12 21.88
05/29/1998 10/16/1998 Valley National Bncrp 35.08 27.21 21.47 11.79 10.89 40.31 103.70
05/28/1998 10/29/1998 Republic Security Financial 30.75 16.70 16.17 50.81 43.44 45.82 85.03
05/26/1998 02/17/1999 Roslyn SB 27.23 27.81 43.83 46.62 57.86 69.68 168.08
05/18/1998 09/30/1998 First Charter Corp. 18.62 24.52 21.98 2.50 7.42 3.44 -20.20
05/07/1998 09/03/1998 Blackhawk Bncrp Inc. NM 15.47 9.19 17.65 21.21 37.93 87.50
05/07/1998 08/03/1998 Central Bncshrs, Inc. 15.18 28.66 21.23 129.07 NA NA NA
04/23/1998 11/16/1998 Ambanc Hldg Co. 22.58 18.70 8.48 1.20 3.70 18.30 63.89
04/23/1998 11/13/1998 Sterling Fin Corp. 20.27 19.97 10.77 28.96 28.96 44.76 75.14
04/03/1998 10/01/1998 Astoria Fin Corp. 32.11 29.08 35.57 3.33 13.47 38.37 107.04
03/31/1998 08/14/1998 Hudson United Bncrp 38.38 32.77 21.63 3.63 16.77 17.18 40.20
03/31/1998 08/21/1998 Hudson United Bncrp 12.10 21.99 17.43 6.25 22.40 25.41 112.50
03/17/1998 10/01/1998 Washington Mutual Inc. 22.38 21.22 28.95 22.69 35.92 20.95 102.16
03/09/1998 08/14/1998 Commercial Fed Corp. 24.59 34.04 31.60 6.19 17.65 15.94 64.38
03/06/1998 08/31/1998 U.S.B. Hldg Co. 30.56 26.73 14.19 15.79 15.79 11.39 44.26
02/27/1998 06/26/1998 Blue River Bncshrs Inc. 18.95 11.11 5.33 93.33 NA NA NA
02/25/1998 09/30/1998 BB&T Corp. 25.55 21.50 21.33 16.68 22.97 39.79 97.57
02/18/1998 10/01/1998 United Bnkshrs Inc. 27.42 25.34 23.69 8.87 9.27 45.88 108.40
02/06/1998 06/30/1998 Signal Corp. 21.18 27.26 22.83 27.34 38.50 39.52 108.51
01/27/1998 11/10/1998 Jackson National Life Ins Co. NM 5.89 1.81 50.00 82.74 80.00 100.00
01/14/1998 06/26/1998 Fifth Third Bncrp 28.24 22.02 38.87 42.87 39.64 49.13 148.93
--------------------------------------------------------------------
24.55 21.27 14.13 32.31 38.22 40.92 40.00
23.28 20.60 11.55 26.89 36.59 37.93 34.83
--------------------------------------------------------------------
--------------------------------------------------------------------
19.58 15.96 8.84 34.24 42.82 45.51 34.70
18.62 16.01 6.23 28.23 42.32 41.81 31.82
--------------------------------------------------------------------
--------------------------------------------------------------------
26.06 22.53 13.73 36.77 43.32 47.63 28.35
24.89 21.13 11.26 36.68 41.85 45.50 28.79
--------------------------------------------------------------------
--------------------------------------------------------------------
27.69 24.86 19.20 26.20 28.62 29.66 56.97
24.56 22.02 15.65 26.89 35.04 36.84 37.14
--------------------------------------------------------------------
***CONFIDENTIAL*** 3
RP Financial, L.C.
Financial Services Industry Consultants
ESSEX BANCORP, INC.
DISCOUNTED CASH FLOW ANALYSIS: STAND ALONE BASIS
- ------------------------------------------------------------------
1. BASE CASE SCENARIO Actual Projected
------------------
Multiples Based On Current Peer Group Pricing Ratios ---------------------------------------------------
Year 1 Conforms with FY 2001 Before Privatization Dec. 31 Fiscal Fiscal Fiscal Fiscal
- ------------------------------------------------------------------ 2000 2001 2002 2003 2004
------ ---- ---- ---- ----
($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
Investment Securities (Including FHLB Stock) $ 5,026 $ 5,007 $ 5,257 $ 5,520 $ 5,796
Loans Receivable (net) and Loans Held for Sale $ 266,950 $ 289,529 $ 311,822 $ 336,144 $ 363,036
Goodwill $ 0 $ 0 $ 0 $ 0 $ 0
Other Assets $ 17,963 $ 19,064 $ 20,017 $ 21,018 $ 22,069
--------- --------- --------- --------- ---------
Total Assets $ 307,722 $ 330,926 $ 355,289 $ 381,785 $ 410,958
Liabilities
- -----------
Deposits $ 242,596 $ 275,128 $ 298,514 $ 323,888 $ 351,418
Borrowings (Excludes Borrowings to Fund Privatization) $ 41,100 $ 31,150 $ 31,150 $ 31,150 $ 31,150
Other Liabilities $ 1,888 $ 2,213 $ 2,320 $ 2,299 $ 2,475
--------- --------- --------- --------- ---------
Total Liabilities $ 285,584 $ 308,491 $ 331,984 $ 357,336 $ 385,043
Stockholders Equity
- -------------------
Common Stock (Assumes no exercise of warrants or stock options) $ 11 $ 11 $ 11 $ 11 $ 11
Preferred Stock (Assumes dividends continue to accumulate) $ 15,007 $ 15,007 $ 15,007 $ 15,007 $ 15,007
Retained Earnings (Accumulated Deficit) -$ 1,839 -$ 1,271 -$ 401 $ 742 $ 2,210
Treasury Stock $ 0 $ 0 $ 0 $ 0 $ 0
Additional Paid-In Capital $ 8,688 $ 8,688 $ 8,688 $ 8,688 $ 8,688
Holding Loss on Securities AFS $ 0 $ 0 $ 0 $ 0 $ 0
--------- --------- --------- --------- ---------
Total Stockholders Equity $ 21,867 $ 22,435 $ 23,305 $ 24,448 $ 25,916
--------- --------- --------- --------- ---------
Total Liabilities and Stockholders Equity $ 307,451 $ 330,926 $ 355,289 $ 381,785 $ 410,958
Tangible Stockholders Equity $ 21,867 $ 22,435 $ 23,305 $ 24,448 $ 25,916
- ------------------------------------------------------------------
BALANCE SHEET COMPOSITION (% of Assets)
- ------------------------------------------------------------------
Assets
- ------
Cash and Due From Banks 5.78% 5.24% 5.12% 5.00% 4.88%
Investment Securities (Including FHLB Stock) 1.63% 1.51% 1.48% 1.45% 1.41%
Loans Receivable (net) and Loans Held for Sale 86.75% 87.49% 87.77% 88.05% 88.34%
Goodwill 0.00% 0.00% 0.00% 0.00% 0.00%
Other Assets 5.84% 5.76% 5.63% 5.51% 5.37%
--------- --------- --------- --------- ---------
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
Liabilities
- -----------
Deposits 78.84% 83.14% 84.02% 84.84% 85.51%
Borrowings (Excludes Borrowings to Fund Privatization) 13.36% 9.41% 8.77% 8.16% 7.58%
Other Liabilities 0.61% 0.67% 0.65% 0.60% 0.60%
--------- --------- --------- --------- ---------
Total Liabilities 92.81% 93.22% 93.44% 93.60% 93.69%
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) 4.88% 4.53% 4.22% 3.93% 3.65%
Retained Earnings (Accumulated Deficit) -0.60% -0.38% -0.11% 0.19% 0.54%
Treasury Stock 0.00% 0.00% 0.00% 0.00% 0.00%
Additional Paid-In Capital 2.82% 2.63% 2.45% 2.28% 2.11%
Holding Loss on Securities AFS 0.00% 0.00% 0.00% 0.00% 0.00%
--------- --------- --------- --------- ---------
Total Stockholders Equity/Assets 7.11% 6.78% 6.56% 6.40% 6.31%
Total Liabilities and Stockholders Equity 99.91% 100.00% 100.00% 100.00% 100.00%
Tangible Stockholders Equity 7.11% 6.78% 6.56% 6.40% 6.31%
- ------------------------------------------------------------------
OTHER KEY BALANCE SHEET RATIOS (%)
- ------------------------------------------------------------------
Loans/Deposits 110.04% 105.23% 104.46% 103.78% 103.31%
Interest Earning Assets/Interest Bearing Liabilities 102.14% 101.82% 101.70% 101.61% 101.65%
- ------------------------------------------------------------------
1. BASE CASE SCENARIO
------------------
Multiples Based On Current Peer Group Pricing Ratios Fiscal
Year 1 Conforms with FY 2001 Before Privatization 2005 Comments
- ------------------------------------------------------------------ ---- --------
($000)
- ------------------------------------------------------------------
BALANCE SHEET DATA ($000)
- ------------------------------------------------------------------
Assets
- ------
Cash and Due From Banks $ 21,060
Investment Securities (Including FHLB Stock) $ 6,086
Loans Receivable (net) and Loans Held for Sale $ 392,805
Goodwill $ 0
Other Assets $ 23,173
------------
Total Assets $ 443,123
[GRAPH]
Liabilities
- -----------
Deposits $ 381,289
Borrowings (Excludes Borrowings to Fund Privatization) $ 31,150
Other Liabilities $ 2,909
------------
Total Liabilities $ 415,347
Stockholders Equity
- -------------------
Common Stock (Assumes no exercise of warrants or stock options) $ 11
Preferred Stock (Assumes dividends continue to accumulate) $ 15,007
Retained Earnings (Accumulated Deficit) $ 4,070
Treasury Stock $ 0
Additional Paid-In Capital $ 8,688
Holding Loss on Securities AFS $ 0
------------
Total Stockholders Equity $ 27,776 [GRAPH]
------------
Total Liabilities and Stockholders Equity $ 443,123
Tangible Stockholders Equity $ 27,776
BALANCE SHEET COMPOSITION (% of Assets)
Assets
- ------
Cash and Due From Banks 4.75%
Investment Securities (Including FHLB Stock) 1.37%
Loans Receivable (net) and Loans Held for Sale 88.64%
Goodwill 0.00%
Other Assets 5.23%
------------
Total Assets 100.00%
Liabilities
- -----------
Deposits 86.05%
Borrowings (Excludes Borrowings to Fund Privatization) 7.03%
Other Liabilities 0.66% [GRAPH]
------------
Total Liabilities 93.73%
Stockholders Equity
- -------------------
Common Stock (Assumes no exercise of warrants or stock options) 0.00%
Preferred Stock (Assumes dividends continue to accumulate) 3.39%
Retained Earnings (Accumulated Deficit) 0.92%
Treasury Stock 0.00%
Additional Paid-In Capital 1.96%
Holding Loss on Securities AFS 0.00%
------------
Total Stockholders Equity/Assets 6.27%
Total Liabilities and Stockholders Equity 100.00% [GRAPH]
Tangible Stockholders Equity 6.27%
- ------------------------------------------------------------------
OTHER KEY BALANCE SHEET RATIOS (%)
- ------------------------------------------------------------------
Loans/Deposits 103.02%
Interest Earning Assets/Interest Bearing Liabilities 101.82%
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 (Including Fee Income) Maintain constant interest rates
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
RP Financial, LC. ESSEX BANCORP,INC.
- ---------------- DISCOUNTED CASH FLOW ANALYSIS: STAND ALONE BASIS
Financial Services Industry Consultants
- -------------------------------------------------------
1. BASE CASE SCENARIO Actual Protected
- --------------------- -----------------------------------------------
Multiples Based On Current Peer Group Pricing Ratios Dec. 31 Fiscal Fiscal Fiscal Fiscal
Year 1 Conforms with FY 2001 Before Privatization 2000 2001 2002 2003 2004
- ------------------------------------------------------- ---- --- ---- ---- ----
($000) ($000) ($000) ($000) ($000)
- -------------------------------------------------------
INCOME STATEMENT ($000) Trailing 12
- -------------------------------------------------------
Interest Income Months
--------
Cash and Due From Banks $ 674 $ 781 $ 790 $ 830 $ 871
Investment Securities (Including FHLB Stock) $ 397 $ 351 $ 359 $ 377 $ 396
Loans Receivable (net) and Loans Held for Sale $ 21,131 $ 23,052 $ 24,911 $ 26,842 $ 28,964
------- --------- --------- --------- ---------
Total Interest Income $ 22,202 $ 24,184 $ 26,060 $ 28,049 $ 30,231
Interest Expense
Deposits $ 11,400 $ 13,629 $ 15,101 $ 16,385 $ 17,777
Borrowings (Excludes Borrowings to Fund Privatization) $ 3,159 $ 2,549 $ 2,198 $ 2,198 $ 2,198
------- --------- --------- --------- ---------
Total Interest Expense $ 14,559 $ 16,178 $ 17,299 $ 18,582 $ 19,975
------- --------- --------- --------- ---------
Net Interest Income $ 7,643 $ 8,007 $ 8,762 $ 9,467 $ 10,256
Provision for Loan Losses (Maintain constant level) -$ 740 -$ 325 -$ 325 -$ 325 -$ 325
------- --------- --------- --------- ---------
Net Interest Income After Loan Losses $ 6,903 $ 7,682 $ 8,437 $ 9,142 $ 9,931
Other Income $ 3,115 $ 3,769 $ 4,146 $ 4,561 $ 5,017
Operating Expense -$ 8,850 -$ 10,512 -$ 11,143 -$ 11,811 -$ 12,520
------- --------- --------- --------- ---------
Net Income Before Tax $ 1,168 $ 939 $ 1,440 $ 1,891 $ 2,428
Income Tax (Maintain constant effective tax rate) $ 2,704 -$ 371 -$ 570 -$ 748 -$ 960
------- --------- --------- --------- ---------
Net Income $ 3,872 $ 568 $ 871 $ 1,143 $ 1,467
Net Increase From Other Activities $ 0 $ 0 $ 0 $ 0
--------- --------- --------- ---------
Pro Forma Earnings $ 568 $ 871 $ 1,143 $ 1,467
- -------------------------------------------------------
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%
Investment Securities (Including FHLB Stock) 0.14% 0.11% 0.10% 0.10% 0.10%
Loans Receivable (net) and Loans Held for Sale 7.22% 7.22% 7.26% 7.28% 7.31%
------- -------- --------- --------- ---------
Total Interest Income 7.58% 7.57% 7.60% 7.61% 7.63%
Interest Expense
Deposits 3.89% 4.27% 4.40% 4.45% 4.49%
Borrowings (Excludes Borrowings to Fund Privatization) 1.08% 0.80% 0.64% 0.60% 0.55%
------- -------- --------- --------- ---------
Total Interest Expense 4.97% 5.07% 5.04% 5.04% 5.04%
------- -------- --------- --------- ---------
Net Interest Income 2.61% 2.51% 2.55% 2.57% 2.59%
Provision for Loan Losses (Maintain constant level) -0.25% -0.10% -0.09% -0.09% -0.08%
------- -------- --------- --------- ---------
Net Interest Income After Loan Losses 2.36% 2.41% 2.46% 2.48% 2.51%
Other Income 1.06% 1.18% 1.21% 1.24% 1.27%
Operating Expense -3.02% -3.29% -3.25% -3.20% -3.16%
------- -------- --------- --------- ---------
Net Income Before Tax 0.40% 0.29% 0.42% 0.51% 0.61%
Income Tax (Maintain constant effective tax rate) 0.92% -0.12% -0.17% -0.20% -0.24%
------- -------- --------- --------- ---------
Net Income/Average Assets 1.32% 0.18% 0.25% 0.31% 0.37%
Net Increase From Other Activities 0.00% 0.00% 0.00% 0.00%
-------- --------- --------- ---------
Pro Forma Earnings 0.18% 0.25% 0.31% 0.37%
- -------------------------------------------------------
OTHER OPERATING STATEMENT RATIOS (%)
- -------------------------------------------------------
Efficiency Ratio 82.26% 89.27% 86.33% 84.20% 81.98%
Yield Cost Spread 2.80% 2.56% 2.61% 2.63% 2.65%
Effective Tax Rate 35.00% 39.55% 39.55% 39.55% 39.55%
- -------------------------------------------------------
1. BASE CASE SCENARIO
Multiples Based On Current Peer Group Pricing Ratios Fiscal
Year 1 Conforms with FY 2001 Before Privatization 2005 Comments
- ------------------------------------------------------- ---- --------
($000)
- -------------------------------------------------------
INCOME STATEMENT ($000)
- -------------------------------------------------------
Interest Income
Cash and Due From Banks $ 915
Investment Securities (Including FHLB Stock) $ 416
Loans Receivable (net) and Loans Held for Sale $ 31,311
------------
Total Interest Income $ 32,641 [GRAPH]
Interest Expense
Deposits $ 19,289
Borrowings (Excludes Borrowings to Fund Privatization) $ 2,198
------------
Total Interest Expense $ 21,486
------------
Net Interest Income $ 11,155
Provision for Loan Losses (Maintain constant level) -$ 325
------------
Net Interest Income After Loan Losses $ 10,830
Other Income $ 5,518
Operating Expense -$ 13,271 [GRAPH]
------------
Net Income Before Tax $ 3,078
Income Tax (Maintain constant effective tax rate) -$ 1,217
------------
Net Income $ 1,860
Net Increase From Other Activities $ 0
------------
Pro Forma Earnings $ 1,860
- -------------------------------------------------------
INCOME STATEMENT/AVERAGE ASSETS (%)
- -------------------------------------------------------
Interest Income
Cash and Due From Banks 0.21%
Investment Securities (Including FHLB Stock) 0.10%
Loans Receivable (net) and Loans Held for Sale 7.33%
------------
Total Interest Income 7.64%
Interest Expense
Deposits 4.52% [GRAPH]
Borrowings (Excludes Borrowings to Fund Privatization) 0.51%
------------
Total Interest Expense 5.03%
------------
Net Interest Income 2.61%
Provision for Loan Losses (Maintain constant level) -0.08%
------------
Net Interest Income After Loan Losses 2.54%
Other Income 1.29%
Operating Expense -3.11%
------------
Net Income Before Tax 0.72%
Income Tax (Maintain constant effective tax rate) -0.29%
------------
Net Income/Average Assets 0.44%
Net Increase From Other Activities 0.00%
------------
Pro Forma Earnings 0.44%
- -------------------------------------------------------
OTHER OPERATING STATEMENT RATIOS (%)
- -------------------------------------------------------
Efficiency Ratio 79.59%
Yield Cost Spread 2.67%
Effective Tax Rate 39.55%
RP Financial, L.C.
- ------------------ ESSEX BANCORP, INC.
Financial Services Industry Consultants DISCOUNTED CASH FLOW ANALYSIS: STAND ALONE BASIS
- --------------------------------------------------------------
1. BASE CASE SCENARIO Actual Projected
- ----------------------
Multiples Based On Current Peer Group Pricing Ratios -------------------------------------------------
Year 1 Conforms with FY 2001 Before Privatization Dec. 31 Fiscal Fiscal Fiscal Fiscal Fiscal
- -------------------------------------------------------------- 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 -$ 11,686 $ 14,257 $ 17,075 -$ 20,164 $ 23,551
-------- -------- -------- -------- -------- --------
Tangible Common Stock (Assumes no exercise of warrants or
stock -$ 2,482 -$ 4,258 $ 22,555 $ 26,516 -$ 9,255 $ 10,782
- -----------------------------------------------------------------------------------------------------------------------------------
Tangible Common Book Value Per Share ($) -$ 2.34 -$ 4.01 $ 21.27 $ 25.00 -$ 8.73 -$ 10.17
- -----------------------------------------------------------------------------------------------------------------------------------
Price/Tangible Common Book Per Share (x) -0.53x -0.31x 0.06x 0.05x -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 -$ 72 $ 199 -$ 3,387
-------- -------- -------- -------- -------- --------
Pro Forma Common Net Income ($000) $ 1,729 -$ 1,776 -$ 1,700 $ 1,071 $ 1,667 -$ 1,527
- -----------------------------------------------------------------------------------------------------------------------------------
Pro Forma Common Net Income Per Share ($) $ 3.65 -$ 1.67 -$ 1.60 $ 1.01 $1.57 -$ 1.44
- -----------------------------------------------------------------------------------------------------------------------------------
Price/Common EPS (x) 0.34x -0.75x -0.78x 1.24x 0.80x -0.87x
Return on Average Common Equity (%) -115.71% 52.71% -18.58% 4.36% 19.31% 15.24%
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
- -----------------------------------------------------------------------------------------------------------------------------------
DISCOUNTED CASH FLOW ANALYSIS SUMMARY
- ------------------------------------- Present Common Dividends Per Share Paid Each Year
Value ----------------------------------------------------
Present Value Analysis (15% Discount Rate) ----- Year 1 Year 2 Year 3 Year 4 Year 5
------------------------------------------ ------ ------ ------ ------ -----
Common Dividends Per Share $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Terminal Value $0.00
- --------------------------------------------------------------------------
Total Present Value $0.00
- --------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RP Financial, L.C.
Financial Services Industry Consultants
- --------------------------------------------------------------
1. BASE CASE SCENARIO
- ----------------------
Multiples Based On Current Peer Group Pricing Ratios
Year 1 Conforms with FY 2001 Before Privatization Comments
- -------------------------------------------------------------- --------
- --------------------------------------------------------------
COMMON PER SHARE DATA
- --------------------------------------------------------------
Shares Outstanding
- ------------------
Public Shares Issued and Outstanding (000)
New Treasury Shares (000)
Shares From Exercise of Options & Warrants (000)
Common Shares Issued & Outstanding (000)
Distribution of Shares
- ----------------------
Public Shares Issued and Outstanding (%)
New Treasury Shares (%)
Shares From Exercise of Options & Warrants (%)
Common Shares Issued & Outstanding (%)
Weighted Avg Shares Outstanding (EPS) (000)
Stock Price/Share (End of Period) ($)
- -------------------------------------
-----------------------------------
Common Book Value Per Share Terminal Value: Book Value Approach
- ---------------------------- -----------------------------------
Tangible Stockholders Equity ($000)
Less: Preferred Stock (Assumes dividends continue to
accumulate) Peer Group Essex Indicated
Tangible Common Stock (Assumes no exercise of warrants or Multiple Bancorp Value Assumes sale of control in Year 5
stock -------- ------- -----
Less: Accumulated Dividends on Preferred ($000)
Tangible Common Stock (Assumes no exercise of warrants or
stock
- ------------------------------------------------------------
Tangible Common Book Value Per Share ($) 1.53x -$10.17 $0.00 NOTE: If negative, then value is zero
- ------------------------------------------------------------ ------------------------------------
Price/Tangible Common Book Per Share (x) P/B Ratio is not meaningful
---------------------------------
Common Earnings Per Share (Common EPS) Terminal Value: Earnings Approach
- -------------------------------------- ---------------------------------
Pro Forma Net Income ($000)
Less: Preferred Dividends ($000) Peer Group Essex Indicated Assumes sale of control in Year 5
Pro Forma Common Net Income ($000) Multiple Bancorp Value
-------- ------- -----
- ------------------------------------------------------------
Pro Forma Common Net Income Per Share ($) 23.28x -$1.44 $0.00 NOTE: If negative, then value is zero
- ----------------------------------------------------------------------------------------------
Price/Common EPS (x) P/E Ratio is not meaningful
Return on Average Common Equity (%) -$3.97 FY 1999 common book value per share
Common Dividends Per Share
- --------------------------
Payout Ratio (%)
Gross Common Dividends Paid ($000)
Common Dividends Per Share ($)
Common Dividend Yield (%)
Retained Earnings (Accumulated Deficit) ($000)
----------------------------------------------
- -------------------------------------------------------------------- Terminal Terminal
Value Assigned Value
DISCOUNTED CASH FLOW ANALYSIS SUMMARY By Approach Weight Conclusion
- -------------------------------------- Terminal ----------- ------ ----------
Present Value Analysis (15% Discount Rate) Value Yr 5 $0.00 33.33% $ 0.00 Book Value Approach
------------------------------------------ $0.00 66.67% $ 0.00 Earnings Approach
Common Dividends Per Share ------ ------
Terminal Value $0.00 100.00% $ 0.00
- --------------------------------------------------------------------------------- ------
Total Present Value
- ---------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------