CONVERSION VALUATION REPORT
---------------------------
Valued as of February 27, 1998
NORTHFIELD FEDERAL SAVINGS
Baltimore, Maryland
Prepared By:
Ferguson & Company
Suite 305
860 West Airport Freeway
Hurst, Texas 76054
817/577-9558
[FERGUSON & COMPANY LETTERHEAD APPEARS HERE]
STATEMENT OF APPRAISER'S INDEPENDENCE
NORTHFIELD FEDERAL SAVINGS
Baltimore, Maryland
-------------------
We are the appraiser for Northfield Federal Savings ("Northfield" or
"Bank") in connection with its mutual to stock conversion. We are submitting
our independent estimate of the pro forma market value of the Bank's stock to be
issued in the conversion. In connection with our appraisal of the Bank's to-be-
issued stock, we have received a fee which was not related to the estimated
final value. The estimated pro forma market value is solely the opinion of our
company and it was not unduly influenced by the Bank, its conversion counsel,
its selling agent, or any other party connected with the conversion.
Northfield has agreed to indemnify Ferguson & Company under certain
circumstances against liabilities arising out of our services. Specifically, we
are indemnified against liabilities arising from our appraisal except to the
extent such liabilities are determined to have arisen because of our negligence
or willful conduct.
Ferguson & Company
/s/ Robin L. Fussell
Robin L. Fussell
Principal
March 6, 1998
[FERGUSON & COMPANY LETTERHEAD APPEARS HERE]
March 6, 1998
Board of Directors
Nothfield Federal Savings
1844 East Joppa Road
Baltimore, Maryland 21234
Dear Directors:
We have completed and hereby provide, as of February 27, 1998, an independent
appraisal of the estimated pro forma market value of Northfield Federal Savings
("Northfield" or the "Bank"), Baltimore, Maryland, in connection with the
conversion of Northfield from the mutual to stock form of organization
("Conversion"). This appraisal report is furnished pursuant to the regulatory
filing of the Bank's Application for Conversion ("Form AC") with the Office of
Thrift Supervision ("OTS").
Ferguson & Company ("F&C") is a consulting firm that specializes in providing
financial, economic, and regulatory services to financial institutions. The
background and experience of F&C is presented in Exhibit I. We believe that,
except for the fees we will receive for preparing the appraisal, we are
independent. F&C personnel are prohibited from owning stock in conversion
clients for a period of at least one year after conversion.
In preparing our appraisal, we have reviewed Northfield's Application for
Approval of Conversion, including the Proxy Statement as filed with the OTS. We
conducted an analysis of Northfield that included discussions with Anderson
Associates, LLP, the Bank's independent auditors, and with Housley Kantarian &
Bronstein, P.C., the Bank's conversion counsel. In addition, where appropriate,
we considered information based on other available published sources that we
believe is reliable; however, we cannot guarantee the accuracy or completeness
of such information.
We also reviewed the economy in Northfield's primary market area and compared
the Bank's financial condition and operating results with that of selected
publicly traded thrift institutions. We reviewed conditions in the securities
markets in general and in the market for thrifts stocks in particular.
Our appraisal is based on Northfield's representation that the information
contained in the Form AC and additional evidence furnished to us by the Bank and
its independent auditors are truthful, accurate, and complete. We did not
independently verify the financial statements and other information provided by
Northfield and its auditors, nor did we independently value the Bank's assets or
liabilities. The valuation considers Northfield only as a going concern and
should not be considered an indication of its liquidation value.
It is our opinion that, as of February 27, 1998, the estimated pro forma
market value of Northfield was $4,500,000, or 450,000 shares at $10.00 per
share. The resultant valuation range was $3,825,000 at the minimum (382,500
shares at $10.00 per share) to $5,175,000 at the maximum (517,500 shares at
$10.00 per share), based on a range of 15 percent below and above the midpoint
valuation. The supermaximum was $5,951,250 (595,125 shares at $10.00 per
share).
Board of Directors
March 6, 1998
Page 2
Our valuation is not intended, and must not be construed, as a recommendation
of any kind as to the advisability of purchasing shares of common stock in the
conversion. Moreover, because such valuation is necessarily based upon
estimates and projections of a number of matters, all of which are subject to
change from time to time, no assurance can be given that persons who purchase
shares of common stock in the conversion will thereafter be able to sell such
shares at prices related to the foregoing estimate of the Bank's pro forma
market value. F&C is not a seller of securities within the meaning of any
federal or state securities laws and any report prepared by F&C shall not be
used as an offer or solicitation with respect to the purchase or sale of any
securities.
Our opinion is based on circumstances as of the date hereof, including current
conditions in the United States securities markets. Events occurring after the
date hereof, including, but not limited to, changes affecting the United States
securities markets and subsequent results of operations of Northfield, could
materially affect the assumptions used in preparing this appraisal.
The valuation reported herein will be updated as provided in the OTS
conversion regulations and guidelines. Any updates will consider, among other
things, any developments or changes in Northfield's financial performance and
condition, management policies, and current conditions in the equity markets for
thrift shares. Should any such new developments or changes be material, in our
opinion, to the valuation of the shares, appropriate adjustments will be made to
the estimated pro forma market value. The reasons for any such adjustments will
be explained in detail at the time.
Respectfully,
FERGUSON & COMPANY
/s/ Robin L. Fussell
Robin L. Fussell
Principal
TABLE OF CONTENTS
Northfield Federal Savings
Baltimore, Maryland
PAGE
----
INTRODUCTION 1
SECTION I. - FINANCIAL CHARACTERISTICS 1
PAST & PROJECTED ECONOMIC CONDITIONS 1
FINANCIAL CONDITION OF INSTITUTION 2
Balance Sheet Trends 2
Asset/Liability Management 2
Income and Expense Trends 2
Regulatory Capital Requirements 2
Lending 2
Nonperforming Assets 3
Classified Assets 3
Loan Loss Allowance 3
Mortgage-Backed Securities and Investments 3
Savings Deposits 3
Borrowings 3
Subsidiaries 3
Legal Proceedings 4
EARNINGS CAPACITY OF THE INSTITUTION 4
Asset-Size-Efficiency of Asset Utilization 4
Intangible Values 4
Effect of Government Regulations 4
Office Facilities 4
SECTION II - MARKET AREA 1
DEMOGRAPHICS 1
i
FERGUSON & COMPANY
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TABLE OF CONTENTS - CONTINUED
Northfield Federal Savings
Baltimore, Maryland
PAGE
----
SECTION III - COMPARISON WITH PUBLICLY TRADED THRIFTS 1
COMPARATIVE DISCUSSION 1
Selection Criteria 1
Profitability 2
Balance Sheet Characteristics 2
Risk Factors 2
Summary of Financial Comparison 2
FUTURE PLANS 3
SECTION IV - CORRELATION OF MARKET VALUE 1
MARKETABILITY & LIQUIDITY OF STOCK TO BE ISSUED 1
Financial Aspects 1
Market Area 2
Management 2
Dividends 2
Liquidity 3
Thrift Equity Market Conditions 3
MARYLAND ACQUISITIONS 3
EFFECT OF INTEREST RATES ON THRIFT STOCK 4
Adjustments Conclusion 6
Valuation Approach 6
Valuation Conclusion 7
ii
FERGUSON & COMPANY
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TABLE OF CONTENTS - CONTINUED
Northfield Federal Savings
Baltimore, Maryland
TABLE
NUMBER TABLE TITLE PAGE
------ ----------- ----
SECTION I - FINANCIAL CHARACTERISTICS
1 Selected Financial Data 5
2 Operating Ratios 6
3 Interest Rate Shock 7
4 Regulatory Capital Compliance 8
5 Loan Portfolio Composition 9
6 Loan Origination, Purchase, and Repayment Activity 10
7 Average Balances, Rates, and Yields 11
8 Rate/Volume Analysis 12
9 Non-Performing Assets 13
10 Analysis of the Allowance for Loan Losses 14
11 Allocation of Allowance for Loan Losses 15
12 Investment Securities 16
13 Investments at December 31, 1997 17
14 Deposit Portfolio 18
15 Savings Deposits Detail 19
16 Certificate of Deposit Maturities 20
17 Savings Flows 21
18 Jumbo CD Maturities 22
19 Offices 23
SECTION II - MARKET AREA
1 Demographic Trends 3
2 Percent Employment by Industry 4
3 Market Area Deposits 5
SECTION III - COMPARISON WITH PUBLICLY
TRADED THRIFTS
1 Comparatives General Characteristics 4
2 Key Financial Indicators 5
3 Pro Forma Comparisons 6
iii
FERGUSON & COMPANY
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TABLE OF CONTENTS - CONTINUED
Northfield Federal Savings
Baltimore, Maryland
TABLE
NUMBER TABLE TITLE PAGE
------ ----------- ----
SECTION IV - CORRELATION OF MARKET VALUE
1 Appraisal Earnings Adjustments 2
2 Maryland Acquisitions 8
3 Recent Conversions 10
4 Recent Pink Sheet Conversions 13
5 Comparison of Pricing Ratios 16
FIGURE
NUMBER LIST OF FIGURES PAGE
------ --------------- ----
SECTION IV - CORRELATION OF MARKET VALUE
1 SNL Index 17
2 Interest Rates 18
EXHIBIT TITLE
-------------
Exhibit I - Ferguson & Company Qualifications
Exhibit II - Selected Region, State, and Comparatives Information
Exhibit III - Northfield Federal Savings TAFS Report
Exhibit IV - Comparative Group TAFS and BankSource Reports
Exhibit V - Selected Publicly Traded Thrifts
Exhibit VI - Comparative Group Selection
Exhibit VII - Pro Forma Calculations
Pro Forma Assumptions
Pro Forma Effect of Conversion Proceeds At the Minimum of the Range
Pro Forma Effect of Conversion Proceeds At the Midpoint of the Range
Pro Forma Effect of Conversion Proceeds At the Maximum of the Range
Pro Forma Effect of Conversion Proceeds At the SuperMax of the Range
Pro Forma Analysis Sheet
Exhibit VIII - Reconciliation of Quarterly Reports to Financial Statements
iv
SECTION I
FINANCIAL CHARACTERISTICS
FERGUSON & COMPANY SECTION I
- ------------------ ---------
INTRODUCTION
Northfield Federal Savings ("Northfield" or "Bank") is a federally chartered,
federally insured mutual savings association located in Baltimore, Maryland. It
was chartered in 1923 and it joined the Federal Home Loan Bank system and
received federal insurance of accounts in 1985. In December 1997, it adopted a
plan to convert to a federal stock savings bank, via a standard mutual to stock
conversion.
At December 31, 1997, Northfield had total assets of $36.1 million, loans of
$30.0 million, mortgage-backed securities of $2.0 million, interest-bearing
deposits in other banks of $3.5 million, deposits of $32.6 million, and net
worth of $2.9 million, or 8.0% of assets.
The bank has two offices, which are located in Baltimore, Maryland. Maryland
is in the mid-Atlantic region of the United States. Baltimore is approximately
50 miles north of Washington, DC.
Northfield is a traditional thrift with emphasis on lending. It invests
primarily in (1) 1-4 family loans, (2) construction loans, (3) mortgage backed
securities, and (4) temporary cash investments. It is funded principally by
savings deposits and existing net worth. It has utilized borrowings recently,
but had none outstanding at December 31, 1997.
The Bank offers a full spectrum of real estate loan products to accommodate
its customer base and single family loans dominate the Bank's loan portfolio.
At December 31, 1997, loans on 1-4 family dwellings made up 71.3% of total
assets and 81.4% of the loan portfolio. Construction loans were 6.7% of the
loan portfolio, commercial real estate loans were 8.9% of the loan portfolio,
and commercial non-real estate loans were 2.3% of the loan portfolio. Mortgage
backed securities made up 5.4% of total assets. Interest earning cash made up
9.7% of Northfield's assets at December 31, 1997.
Northfield had $414,000 in non-performing assets at December 31, 1997, as
compared to $270,000 at December 31, 1996.
Savings deposits increased $5.5 million during the period from December 31,
1993, to December 31, 1997, a compound annual growth rate of 4.77%. Savings
decreased $67 thousand (0.23%) from December 31, 1995, to December 31, 1996, and
increased $3.5 million (12.04%) from December 31, 1996, to December 31, 1997.
Northfield has not relied extensively on borrowings during recent years. It had
$1.75 million in borrowings during September 1997, and none at December 31,
1997.
The Bank's capital to assets ratio has increased during the period of four
years ending December 31, 1997. Equity capital, as a percentage of assets, has
increased from 7.15% at December 31, 1993, to 8.02% at December 31, 1997. The
compound annual asset growth rate was 5.17% during the period, while the
compound annual rate of growth for equity was 8.23%.
Northfield's profitability, as measured by return on average assets ("ROAA"),
has been above its peer group average of thrifts filing TFR's with the OTS,
consisting of OTS supervised thrifts with assets between $25 million and $50
million. For the years ending December 31, 1994, 1995, 1996, and the nine month
period ending September 30, 1997, Northfield ranked in the 66th, 75th, 70th, and
80th percentile, respectively, in ROAA, based on information derived from the
TAFS thrift database published by Sheshunoff Information Services Inc. (See
Exhibit III, page 2). In return on equity for the same periods, Northfield
ranked in the 85th, 88th, 84th, and 90th percentile, respectively.
I. FINANCIAL CHARACTERISTICS
PAST & PROJECTED ECONOMIC CONDITIONS
Fluctuations in thrift earnings in recent years have occurred within the time
frames as a result of changing temporary trends in interest rates and other
economic factors. However, the year-to-year results have been upward while the
general trends in the thrift industry have been improving as interest rates
declined. Interest rates began a general upward movement during late 1993,
followed by a decline in interest margins and profitability. Rates began a
general decline in mid 1995 and then leveled off on the short end and increased
on the long end. Northfield's spread was 2.90% for the year ended December 31,
1996, and 2.88% for the year ended December 31, 1997.
FERGUSON & COMPANY SECTION I
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The thrift industry generally is better equipped to cope with changing
interest rates than it was in the past, and investors have recognized the
demonstrated ability of the thrift industry to maintain interest margins in
spite of rising interest rates. However, rate increases and the shortening of
the time elapsed between increases during 1994 placed pressure on portfolio
managers to shorten maturities, which negatively impacts the future earnings of
financial institutions. Northfield has a much higher exposure to interest rate
risk than the thrift industry in general.
FINANCIAL CONDITION OF INSTITUTION
BALANCE SHEET TRENDS
As Table I.1 shows, Northfield experienced healthy growth in assets during the
period of two years months ending December 31, 1997. Assets increased $3.9
million, or 12.2% during the period. Loans increased $8.3 million, or 38.1%.
Mortgage-backed securities, interest-earning cash, and investment securities
combined decreased $4.2 million, or 76.1% during the period. Savings deposits
increased by $3.4 million, or 11.8%. Equity increased $294 thousand, or 11.3%.
ASSET/LIABILITY MANAGEMENT
Managing interest rate risk is a major component of the strategy used in
operating a thrift. Most of a thrift's interest earning assets are long-term,
while most of the interest bearing liabilities have short to intermediate terms
to contractual maturity. To compensate, asset/liability management techniques
include (1) making long term loans with interest rates that adjust to market
periodically, (2) investing in assets with shorter terms to maturity, (3)
lengthening the terms to maturities of savings deposits, and (4) seeking to
employ any combination of the aforementioned techniques artificially through the
use of synthetic hedge instruments. Table I.3 provides rate shock information
at varying levels of interest rate change. The Bank has significant exposure to
interest rate increases, but its exposure will be reduced through the equity
raised in the conversion.
Northfield's basic approach to interest rate risk management has been to
emphasize shorter term mortgage loans, and manage its spread by decreasing
liquidity as it increased its investments in loans. For example, at December
31, 1995, Northfield had 29.9% of its assets invested in passive assets and
67.5% invested in loans. At December 31, 1997, the Bank had 83.0% of its assets
invested in loans and 15.2% invested in passive investments. Loans generally
earn a higher rate of interest than passive investments. While this change in
balance sheet structure increased interest rate risk exposure, it helped the
Bank's spread. Northfield currently is not utilizing synthetic hedge
instruments and has not used borrowings extensively in recent years.
Northfield's business plan calls for a continuation of these strategies.
INCOME AND EXPENSE TRENDS
Northfield was profitable for the five fiscal years December 31, 1997.
Fluctuations in income over the period have resulted principally from (1)
changes in non-interest expense, principally the SAIF assessment of
approximately $183,000 in 1996 and the directors' deferred compensation cost of
$115,000 in 1997; (2) securities losses of approximately $32,000 in 1997; and
(3) higher than normal additions to the loan loss allowance during the year
ended December 31, 1997.
Net interest income increased in the year ended December 31, 1997, principally
as a result of growth.
REGULATORY CAPITAL REQUIREMENTS
As Table I.4 demonstrates, Northfield meets all regulatory capital
requirements, and meets the regulatory definition of a "Well Capitalized"
institution. Moreover, the additional capital raised in the stock conversion
will add to the existing capital cushion.
LENDING
Table I.5 provides an analysis of the Bank's loan portfolio by type of loan
and security. This analysis shows that, from December 31, 1996, through 1997,
Northfield's loan composition has been dominated by 1-4 family dwelling loans.
2
FERGUSON & COMPANY SECTION I
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Table I.6 provides information with respect to loan originations and
repayments. It indicates the years ended December 31, 1997 and 1996, were high
growth years.
Table I.7 provides rates, yields, and average balances for each of the two
years ended December 31, 1997. Interest rates earned on interest-earning assets
increased from 7.74% in 1996 to 7.81% for 1997. Interest rates paid on
interest-bearing liabilities increased from 4.84% in 1996 to 4.93% in 1997.
Northfield's spread decreased from 2.90% in 1996 to 2.88% in 1997.
Table I.8 provides a rate volume analysis, measuring differences in interest
earning assets and interest costing liabilities and the interest rates thereon
during the years ended December 31, 1997 versus 1996. The table shows that most
of the increase in net interest income for 1997 resulted from volume changes,
while rate changes substantially offset changes in volumes for 1996.
NON-PERFORMING ASSETS
As shown in Table I.9, the Bank had $414,000 in loans that were over 90 days
delinquent at December 31, 1997. The Bank had ceased to accrue interest on
$135,000 of these loans at December 31, 1997. As shown in Table I.9, Northfield
had $270 thousand in nonperforming assets at December 31, 1996.
CLASSIFIED ASSETS
Northfield had $135 thousand in classified assets at December 31, 1997, all of
which were classified substandard. The Bank also had $339 thousand in special
mention. The Bank had a loan loss allowance of $216,000, or 160.0% of
classified assets at December 31, 1997.
LOAN LOSS ALLOWANCE
Table I.10 provides an analysis of Northfield's loan loss allowance. Table
I.11 shows the allocation of the loan loss allowance among the various loan
categories as of December 31, 1996 and 1997.
MORTGAGE-BACKED SECURITIES AND INVESTMENTS
Table I.12 provides a breakdown of investments as of December 31, 1996 and
1997. Table I.13 provides maturity information for investments as of December
31, 1997.
SAVINGS DEPOSITS
At December 31, 1997, Northfield's deposit portfolio was composed as follows:
NOW and DDA accounts--$2.079 million or 6.4%; passbook accounts--$2.605 million
or 8.0%; money market deposit accounts--$7.816 million or 24.0%; and certificate
accounts--$20.108 million or 61.7% (see Table I.14). Table I.15 provides a
comparison of deposits by category for 1996 and 1997. It shows a shift in
composition from transaction to certificate accounts. Table I.16 provides
maturity information for certificates by rate range at December 31, 1997. Table
I.17 provides savings flow information for the years ended December 31, 1996 and
1997. It shows that the Bank experienced a minor decline in deposits for the
year ended December 31, 1996, and experienced a healthy increase in deposits for
the year ended December 31, 1997.
Northfield is not overly dependent on jumbo certificates of deposit. At
December 31, 1997, the Bank had $1,456 million in certificates that were issued
for $100 thousand or more, or 4.47% of its total deposits (see Table I.18).
BORROWINGS
Northfield has had minor borrowings in recent years. In September 1997, it had
$1.75 million in borrowings from the Federal Home Loan Bank of Atlanta. However,
at December 31, 1997, it had no outstanding borrowings.
SUBSIDIARIES
Northfield has no subsidiary.
3
FERGUSON & COMPANY SECTION I
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LEGAL PROCEEDINGS
From time to time, Northfield becomes involved in legal proceedings
principally related to the enforcement of its security interest in real estate
loans. In the opinion of Management of the Bank, no legal proceedings are in
process or pending that would have a material effect on Northfield's financial
position, results of operations, or liquidity.
EARNINGS CAPACITY OF THE INSTITUTION
As in any interest sensitive industry, the future earnings capacity of
Northfield will be affected by the interest rate environment. Historically, the
thrift industry has performed at less profitable levels in periods of rising
interest rates. This performance is due principally to the general composition
of the assets and the limited repricing opportunities afforded even the
adjustable rate loans. The converse earnings situation (falling rates) does not
afford the same degree of profitability potential for thrifts due to the
tendency of borrowers to refinance both high rate fixed rate loans and
adjustable loans as rates decline.
Northfield is no exception to the aforementioned phenomenon. With its current
asset and liability structure, however, its exposure to rising interest rates is
significant.
The addition of capital through the conversion will allow Northfield to grow.
As growth is attained, the leverage of that new capital should, from a ratio of
expenses to total assets standpoint, reduce the operating expense ratio.
However, growth and additional leverage will likely be moderate and well
controlled to maintain the current risk levels inherent in the Bank's asset
base.
ASSET-SIZE-EFFICIENCY OF ASSET UTILIZATION
At its current size and in its current asset configuration, Northfield is a
moderately efficient operation. With total assets of approximately $36.1
million, Northfield has eight full time equivalent employees.
INTANGIBLE VALUES
Northfield's greatest intangible value lies in its loyal deposit base.
Northfield has a 75 year history of sound operations, controlled growth, and
consistent earnings. At June 30, 1996, the Bank had 3.46% of the deposit market
in its area (up from 3.39% at June 30, 1994), and it has the ability to increase
market share. Northfield's deposits grew $3.354 million (11.46%) from June 30,
1996, to December 31, 1997.
Northfield has no significant intangible values that could be attributed to
unrecognized asset gains on investments and real estate.
EFFECT OF GOVERNMENT REGULATIONS
Northfield's business plan calls for little change in its strategies.
Government regulations will have the greatest impact in the area of cost of
compliance and reporting. The conversion will create an additional layer of
regulations and reporting and thereby increase the cost to the Bank.
OFFICE FACILITIES
Northfield's main office is located in leased space in a strip shopping
center. It has limited drive-up and no ATM services. Its branch building is an
owned facility with limited space. Table I.19 provides information on
Northfield's offices. The facilities are adequate for the convenience and needs
of the Bank's customer base. However, executive officers and staff members do
not have adequate working space. The Bank is in the process of leasing
temporary executive offices for a period of approximately two years, at the end
of which time it is anticipated that the Bank will construct a new home office.
4
FERGUSON & COMPANY Section I
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Table I.1 - Selected Financial Data
At December 31 Compound
--------------------------------------------------------------- Growth
1997 1996 1995 1994 1993 Rate
---- ---- ---- ---- ---- ---------
($000's)
Selected Financial Condition Data:
Total assets $36,084 $32,228 $32,151 $30,336 $29,492 5.17%
Cash 117 173 187 137 190 NM
Interest bearing deposits 3,514 5,186 7,284 5,747 7,710 -21.70%
Securities available for sale -- 197 191 166 173 NM
Securities held to maturity -- -- -- 212 294 NM
Mortgage backed securities 1,955 2,333 2,154 2,348 2,106 NM
Loans receivable, net 29,961 23,841 21,695 21,162 18,462 12.87%
Federal Home Loan Bank stock 226 226 226 226 224 NM
Savings deposits 32,622 29,116 29,183 27,652 27,079 4.77%
Equity--substantially restricted 2,894 2,749 2,600 2,319 2,109 8.23%
Year Ended December 31,
-------------------------------------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
($000's)
Selected Operations Data:
- ------------------------
Interest income $ 2,626 $ 2,457 $ 2,419 $ 2,189 $ 2,315
Interest expense 1,493 1,397 1,354 1,095 1,142
-------------------------------------------------------------------
Net interest income 1,133 1,060 1,065 1,094 1,173
Provision for loan losses 123 10 10 6 9
-------------------------------------------------------------------
Net interest income after
provision for loan losses 1,010 1,050 1,055 1,088 1,164
-------------------------------------------------------------------
Noninterest income (expense) (2) 31 19 (51) 33
-------------------------------------------------------------------
Sub-total 1,008 1,081 1,074 1,037 1,197
-------------------------------------------------------------------
Noninterest expense:
Compensation and benefits 470 328 324 323 276
Other 302 515 330 341 312
-------------------------------------------------------------------
Total noninterest expense 772 843 654 664 588
-------------------------------------------------------------------
Income before taxes 236 238 420 373 609
Income tax expense 91 89 158 149 235
-------------------------------------------------------------------
Sub total 145 149 262 224 374
Cumulative effect of change - - - - 15
===================================================================
Net income $ 145 $ 149 $ 262 $ 224 $ 359
===================================================================
Source: Offering Circular
5
FERGUSON & COMPANY Table I.2 - Operating Ratios Section I
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At or for the
Year Ended December 31,
-------------------------
1997 1996
---- ----
Performance Ratios:
- ------------------
Return on assets (ratio of net earnings
to average total assets) 0.43% 0.46%
Return on equity (ratio of net earnings
to average equity) 4.99% 5.50%
Ratio of average interest-earning assets to
average interest-bearing liabilities 111.11% 109.99%
Ratio of net interest income, after provision
for loan losses, to noninterest expense 130.83% 124.56%
Net interest rate spread 2.88% 2.90%
Net yield on average interest-earning assets 3.37% 3.34%
Quality Ratios:
- --------------
Non-performing loans to total loans
at end of period 1.31% 1.07%
Non-performing loans to total assets 1.15% 0.84%
Non-performing assets to total assets
at end of period 1.15% 0.84%
Allowance for loan losses to non-performing
loans at end of period 52.17% 37.04%
Allowance for loan losses to total loans, net 0.72% 0.42%
Capital Ratios:
- --------------
Equity to total assets at end of period 8.02% 8.47%
Average equity to average assets 8.52% 8.39%
Other Data:
- ----------
Number of full service offices 2 2
Source: Offering circular 6
FERGUSON & COMPANY Section I
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Table I.3 - Interest Rate Shock
Net Portfolio Value
December 31, 1997
--------------------------------------------------------
Estimated
NPV as a
Change Estimated Percent
in Rates NPV of Assets $ Change % Change
- ---------------------- ------------- ------------ -------- -----------
($000's)
+400 bp $ 152 0.47% (3,519) -96%
+300 bp 990 2.95% (2,681) -73%
+200 bp 1,892 5.44% (1,779) -48%
+100 bp 2,823 7.85% (848) -23%
0 bp 3,671 9.89% - -
--100 bp 4,188 11.05% 517 14%
--200 bp 4,286 11.18% 615 17%
--300 bp 4,397 11.34% 726 20%
--400 bp 4,657 11.83% 986 27%
Source: Office of Thrift Supervision, Risk Management Division
7
FERGUSON & COMPANY Section I
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Table I.4 - Regulatory Capital Compliance
Percent of
Amount Assets
---------------------
($000's)
Tangible capital $ 2,894 8.0%
Tangible capital requirement 541 1.5%
--------------------
Excess (deficit) $2,353 6.5%
====================
Core capital $2,894 8.0%
Core capital requirement 1,083 3.0%
--------------------
Excess (deficit) $1,811 5.0%
====================
Risk-based capital $3,109 17.2%
Risk-based capital requirement 1,447 8.0%
--------------------
Excess (deficit) $1,662 9.2%
====================
Source: Offering circular
8
FERGUSON & COMPANY Table I.5 - Loan Portfolio Composition Section I
- ------------------ ---------
At December 31,
----------------------------------------------------------
1997 1996
---------------------------- ----------------------------
Amount Percent Amount Percent
------ ------- ------ -------
($000's)
Mortgage Loans:
1-4 family 25,740 81.35% 19,439 77.18%
Commercial real estate loans 2,805 8.86% 2,195 8.71%
Construction loans 2,105 6.65% 2,462 9.77%
---------------------------- ----------------------------
Total mortgage loans 30,650 96.86% 24,096 95.66%
---------------------------- ----------------------------
Consumer loans:
Home equity line of credit loans 177 0.56% - 0.00%
Loans on savings accounts 74 0.23% 74 0.29%
---------------------------- ----------------------------
251 0.79% 74 0.29%
---------------------------- ----------------------------
Commercial loans-secured by leases 741 2.34% 1,018 4.04%
---------------------------- ----------------------------
Total loans 31,642 100.00% 25,188 100.00%
-------------=============== -------------===============
Less:
Undisbursed loans in process 1,197 1,028
Deferred fees and discounts 268 219
Allowance for losses 216 100
------------- -------------
Loan portfolio, net 29,961 23,841
============= =============
Source: Offering circular 9
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.6 - Loan Origination, Purchase, and Repayment Activity
For the Year Ended June 30,
------------------------------------------
1997 1996
----- ----
($000's)
Net loans, beginning of period $ 23,841 $ 21,695
Originations by type:
- ---------------------
Mortgage loans:
1-4 family 9,621 6,366
Commercial 439 142
Consumer loans 505 -
Loans on savings accounts 50 8
Commercial loans 340 207
------------------- ------------------
Total loans originated 10,955 6,723
------------------- ------------------
Loans purchased 350 -
- --------------- ------------------- ------------------
Repayments: 4,843 4,329
- ----------- ------------------- ------------------
Decrease (increase) in other
items, net: (342) (248)
- ---------------------------- ------------------- ------------------
Net increase (decrease) in loans
receivable, net 6,120 2,146
------------------- ------------------
Net loans, end of period $ 29,961 $ 23,841
=================== ==================
Source: Offering circular
10
Year Ended December 31,
--------------------------------------------------------------------------------------
1997 1996
---------------------------------------- ------------------------------------------
Average Interest Average Interest
Outstanding Earned/ Average Outstanding Earned/ Average
Balance Paid Yield/Rate Balance Paid Yield/Rate
---------------------------------------- ------------------------------------------
($000's)
Interest/dividend-earning assets:
- ---------------------------------
Loans $ 27,282 $ 2,209 8.10% $ 23,157 $ 1,928 8.33%
Mortgage backed securities 2,167 166 7.66% 2,057 162 7.88%
Other (1) 4,186 251 6.00% 6,542 367 5.61%
----------------------------------------------------------------------------------
Total interest\dividend-earning assets 33,635 $ 2,626 7.81% 31,756 $ 2,457 7.74%
============================ ============================
Non-interest earning assets 433 527
-------------- ------------
Total assets $ 34,068 $ 32,283
============== ============
Interest-bearing liabilities:
- -----------------------------
Savings deposits $ 29,854 1,474 4.94% $ 28,796 $ 1,394 4.84%
Borrowings 419 19 4.53% 77 3 3.90%
----------------------------------------- ----------------------------------------
Total interest-bearing liabilities 30,273 $ 1,493 4.93% 28,873 $ 1,397 4.84%
============================ ============================
Non-interest bearing liabilities 891 702
-------------- ------------
Total liabilities 31,164 29,575
-------------- ------------
Equity 2,904 2,708
-------------- ------------
Total liabilities and equity $ 34,068 $ 32,283
============== ============
Net interest\dividend income $ 1,133 $ 1,060
============ =============
Net interest\dividend rate spread (2) 2.88% 2.90%
================ ============
Net interest\dividend earnings assets $ 3,362 $ 2,883
============== ============
Net interest\dividend margin (3) 3.37% 3.34%
================ ============
Average interest\dividend-earning assets to
average interest-bearing liabilities 111.11% 109.99%
============ =============
(1) Includes mutual funds, interest bearing deposits, and FHLB stock.
(2) Net interest rate spread represents the difference between the average
yield on interest-earning assets and the average rate on interest-bearing
liabilities.
(3) Net interest margin represents net interest income divided by average
interest-earning assets.
Source: Offering circular
11
FERGUSON & COMPANY Table I.8 - Rate/Volume Analysis Section I
- ------------------ ---------
Year Ended December 31,
----------------------------------------------------------------------------------------------
1997 vs. 1996 1996 vs. 1995
-------------------------------------------- ------------------------------------------------
Increase Increase
(Decrease) (Decrease)
Due to Total Due to Total
------------------------------ ----------------------------------
Rate/ Increase Rate/ Increase
Volume Rate Volume (Decrease) Volume Rate Volume (Decrease)
------ ---- ------ ---------- ------ ---- ------ ----------
($000's)
Interest-earning assets:
Loans $ 341 $ (51) $ (9) $ 281 $ 127 $ (63) $ (4) $ 60
Investments available for sale 1 - (1) - - - - -
Mortgage-backed securities 9 (4) - 5 (15) (2) - (17)
Interest bearing deposits (129) 20 (8) (117) 1 (6) - (5)
-------------------------------------------- -----------------------------------------------
Total interest-earning assets 222 (35) (18) 169 113 (71) (4) 38
-------------------------------------------- -----------------------------------------------
Interest-bearing liabilities:
Deposits 49 29 1 79 49 (5) - 44
Borrowings 17 - - 17 (1) - - (1)
-------------------------------------------- -----------------------------------------------
Total interest - bearing liabilities 66 29 1 96 48 (5) - 43
-------------------------------------------- -----------------------------------------------
Increase (decrease) in
net interest income $ 156 $ (64) $ (19) $ 73 $ 65 $ (66) $ (4) $ (5)
============================================ ===============================================
Source: Offering circular
12
Table I.9 - Non-Performing Assets
The table below sets forth the amounts and categories of non-performing assets.
Loans are placed on non-accrual status when the collection of principal or
interest becomes doubtful.
December 31,
----------------------------
1997 1996
----- ----
($000's)
Non-accruing loans:
Real estate:
One- to four-family $ - $ -
Multi-family - -
Commercial - -
Construction - -
Consumer - -
Commercial 135 270
----------------------------
Total 135 270
----------------------------
Accruing loans delinquent 90 days or more:
Real estate:
One- to four-family - -
Multi-family - -
Commercial - -
Construction - -
Consumer - -
Commercial 279 -
----------------------------
Total 279 -
----------------------------
Total non-performing loans 414 270
----------------------------
Repossessed assets - -
----------------------------
Total non-performing assets 414 270
============================
Total non-performing loans as a
percentage of total net loans 1.38% 1.13%
============================
Total non-performing assets as a
percentage of total assets 1.15% 0.84%
============================
Source: Offering circular & F&C calculations
13
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.10 - Analysis of the Allowance for Loan Losses
Year ended June 30,
---------------------------
1997 1996
----- ----
($000's)
Balance at beginning of period $ 100 $ 90
------------ -------------
Charge-offs:
One- to four-family - -
Multi-family - -
Commercial real estate - -
Construction - -
Consumer - -
Commercial non-real estate 7 -
------------ -------------
7 -
------------ -------------
Recoveries: - -
------------ -------------
Net (charge-offs) 7 -
------------ -------------
Additions charged to operations 123 10
============ =============
Balance at end of period $ 216 $ 100
============ =============
Allowance for loan losses to total
non-performing loans at end of period 52.17% 37.04%
============ =============
Allowance for loan losses to net
loans at end of period 0.72% 0.42%
============ =============
Source: Offering circular
14
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.11 - Allocation of Allowance for Loan Losses
At December 31,
-----------------------------------------------------
1997 1996
------------------------- -------------------------
Percent Percent
of Loans of Loans
in Each in Each
Amount of Category Amount of Category
Loan Loss to Gross Loan Loss to Gross
Allowance Loans Allowance Loans
--------- ----- --------- -----
($000's)
Mortgage Loans
1-4 family $ 96 81.3% $ 45 77.20%
Commercial 60 8.9% - 8.70%
Construction - 6.7% - 9.80%
Consumer Loans - 0.8% - 0.30%
Commercial Loans 60 2.3% 55 4.00%
------------------------- -------------------------
216 100.0% $ 100 100.0%
========================= =========================
Source: Offering circular
15
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.12 - Investment Securities
At December 31,
----------------------------
1997 1996
------------- -------------
($000's)
Available for sale:
Lord Abbett U.S. government securities
mutual fund $ - $ 197
Held to maturity:
Interest-bearing deposits in other banks 3,514 5,186
Mortgage-backed securities 1,955 2,333
Federal Home Loan Bank stock 226 226
------------- -------------
Total $ 5,695 $ 7,745
============= =============
Source: Offering circular
16
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.13 - Investments at December 31, 1997
Maturity Period at December 31, 1997
------------------------------------------------------------------------ ---------------------------
One Year or Less One to Five Years Over Five Years Total
---------------------- -------------------- ------------------------- ---------------------------
Carrying Carrying Carrying Carrying Market
Value Yield Value Yield Value Yield Value Yield Value
----- ----- ----- ----- ----- ----- ----- ----- -----
($000's)
Securities held to maturity:
- -------------------------------
Interest-bearing deposits $ 3,257 6.03% $ 158 7.51% $ 99 5.50% $ 3,514 6.08% $ 3,514
Mortgage-backed securities 120 5.48% 60 7.98% 1,775 7.94% 1,955 7.79% 2,011
FHLB stock - - 226 7.25% 226 7.25% 226
----------- --------- ---------- --------- ----------- ---------- ----------- --------- ----------
Total investment securities $ 3,377 6.01% $ 218 7.64% $ 2,100 7.75% $ 5,695 6.71% $ 5,751
=========== ========= ========== ========= =========== ========== =========== ========= ==========
Source: Offering circular
17
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.14 - Deposit Portfolio
Balance Percent
Interest December 31, of
Category Term Rate (1) 1997 Deposits
- -------- ---- -------- ----- --------
($000's)
Savings and transactions accounts
- ---------------------------------
Passbook accounts None 3.23% 2,605 8.0%
Demand and NOW accounts None 2.53% 2,079 6.4%
Money market accounts None 4.12% 7,816 24.0%
------------- -------------
12,500 38.3%
------------- -------------
Certificates of deposit
- --------------------------------------
Fixed term, fixed rate 6 months 5.34% 1,954 6.0%
Fixed term, fixed rate 12 months 5.43% 2,394 7.3%
Fixed term, fixed rate 18 months 5.45% 446 1.4%
Fixed term, fixed rate 30 months 5.75% 196 0.6%
Fixed term, fixed rate 36 months 5.92% 447 1.4%
Fixed term, fixed rate 48 months 6.46% 147 0.5%
Fixed term, fixed rate 60 months 6.63% 1,590 4.9%
Fixed term, fixed rate 72 months 6.97% 4,418 13.5%
Other 6.17% 8,516 26.1%
------------- ------------- -------------
Total certificates of deposit 6.19% 20,108 61.7%
------------- ------------- -------------
Total savings deposits 4.24% $ 32,608 100.0%
============= ============= =============
(1) Indicates weighted average interest rate at December 31, 1997.
Source: Offering circular
18
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.15 - Savings Deposits Detail
At December 31,
--------------------------------------------------------------
1997 1996
------------------------------ ------------------------------
Percent of Percent of
Amount Total Amount Total
------ ----- ------ -----
($000's)
Transactions and Savings Deposits:
- ----------------------------------
Demand and NOW accounts $ 2,079 6.37% $ 2,124 7.29%
Money market accounts 7,816 23.96% 7,974 27.39%
Passbook accounts 2,605 7.99% 2,627 9.02%
--------------------------------- ------------------------------
Total transaction accounts 12,500 38.32% 12,725 43.70%
--------------------------------- ------------------------------
Certificates:
Jumbo 1,456 4.46% 2,281 7.83%
Other 18,652 57.18% 14,097 48.42%
--------------------------------- ------------------------------
Total certificates 20,108 61.64% 16,378 56.25%
--------------------------------- ------------------------------
Accrued interest 14 0.04% 13 0.04%
--------------------------------- ------------------------------
Total deposits plus accrued interest $ 32,622 100.00% $ 29,116 100.00%
================================= ==============================
Source: Offering circular
19
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.16 - Certificates of Deposit Maturities
The table below provides CD maturities at December 31, 1997, by year in rate
ranges.
4.00 - 6.00 - Percent
5.99% 7.99% Total of Total
----- ----- ----- --------
($000's)
Certificates maturing in:
One year $ 7,075 $ 688 $ 7,763 38.61%
One to two years 2,461 3,321 5,782 28.75%
Two to three years 454 3,061 3,515 17.48%
Over three years 1,006 2,042 3,048 15.16%
---------------------------------------------------
Total $ 10,996 $ 9,112 $ 20,108 100.00%
===================================================
Percent of total 54.68% 45.32% 100.00%
======================================
Source: Offering circular
20
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.17 - Savings Flows
The following table sets forth the savings flows for the periods indicated.
Year Ended June 30,
------------------------------------------
1997 1996
----- ----
($000's)
Opening balance $ 29,103 $ 29,162
Net increase (decrease)
before interest credited 2,027 (1,464)
Interest credited 1,477 1,405
------------------- ------------------
Ending Balance $ 32,607 $ 29,103
=================== ==================
Net increase (decrease) $ 3,504 $ (59)
=================== ==================
Percent increase (decrease) 12.04% -0.20%
=================== ==================
Source: Offering circular
21
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.18 - Jumbo CD Maturities
Jumbo certificates of deposit
maturing in period ending: Amount
- ------------------------------------------ -------------------
($000's)
Within three months or less $ 100
Three through six months -
Six through twelve months -
Over 12 months 1,356
-------------------
Total $ 1,456
===================
Source: Offering circular
22
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.19 - Offices
Net Book Year Owned or Square
Physical address Value (1) Occupied Leased Footage
- ---------------- --------- -------- ------ -------
($000's)
Main office:
1844 East Joppa Road $ - 1982 Leased 3,150
Baltimore, MD 21234
Branch office:
8705 Harford Road $23 1963 Owned 750
Baltimore, MD 21234
(1) Cost less accumulated depreciation and amortization.
Source: Offering circular
23
SECTION II
MARKET AREA
FERGUSON & COMPANY Section II
- ------------------ ----------
II. MARKET AREA
DEMOGRAPHICS
Northfield Federal Savings ("Northfield" or "Bank") conducts its operations
through two offices located in Baltimore, Maryland. Maryland is in the mid-
Atlantic region of the United States. Baltimore is 50 miles north of
Washington, DC.
Northfield has determined that its principal trade area is the zip code in
which its offices are located--21234. Table II.1 presents historical and
projected trends for the United States, Maryland, Baltimore MSA, and zip code
21234, which includes the Bank's home office and branch. The information
addresses population, income, employment, and housing trends.
As indicated in Table II.1, population growth rates for Baltimore MSA and zip
code 21234 are below both the United States rate and the rate for the State of
Maryland, which is level with that of the United States. Household income
growth for zip code 21234 is projected to be well below that of the State of
Maryland and the Baltimore MSA, but well above that of the United States for the
period 1996 to 2001.
In the period from 1990 until 1996, the population of the State of Maryland
grew 6.40%. During the same period, the Baltimore MSA population increased
4.28%, and the United States population increased 6.67%. The population of zip
code 21234 increased 1.93% from 1990 to 1996. Projections of population growth
from 1996 through 2001 indicate that the State of Maryland will increase 5.33%,
while Baltimore MSA is projected to increase by 4.32% and the United States
population is projected to increase by 5.09%. The population of zip code 21234
is projected to increase 2.01% from 1996 to 2001.
Household income is projected to increase by 4.93% for Baltimore MSA from 1996
to 2001. For the same period, household income is projected to increase by
4.49% for the State of Maryland and decline by 3.88% for the United States. Per
capita and household income levels for the State of Maryland are higher than
those of the United States, and per capita and household income levels for
Baltimore MSA and zip code 21234 are below the State of Maryland but above that
of the United States.
The 2001 estimate shows that, for Baltimore MSA, households with incomes less
than $15,000 are expected to be 14%; those with incomes between $15,000 and
$25,000 are estimated at 12%; those with incomes between $25,000 and $50,000 are
estimated at 33%; those with incomes between $50,000 and $100,000 are estimated
at 33%; and households with incomes in excess of $100,000 are projected to be
10%. The 2001 estimates for Maryland are 12%, 11%, 33%, 35%, and 11%,
respectively. The 2001 estimate for zip code 21234 is 11%, 13%, 40%, 32%, and
5%, respectively.
The number of households in Baltimore MSA is projected to increase by 4.23%
from 1996 to 2001, below the projection for the State of Maryland which calls
for an increase of 5.26% and below the projected growth rate for the United
States at 5.14%.
With projections of a increase in population and number of households,
combined with projections of a growing household income, the market for housing
units will be ample. Zip code 21234 has approximately 27,700 housing units, of
which 62.42% are owner occupied, and a vacancy rate of 3.23%.
The principal sources of employment in Baltimore County are services--30.0%;
trade--27.0%; and public administration--15.0%.
Analysis of the data presented above presents a picture of ample economic
opportunity, suggesting that Northfield has sufficient growth opportunities
within its current market area.
Based on information publicly available on deposits as of June 30, 1996 (see
Table II.3), zip code 21234 had $845.1 million in deposits and Northfield had
3.46% of the deposit market, up from 3.39% of the market at June 30, 1994.
Northfield's recent deposit growth rate has been good. Northfield's competition
consists of 15 commercial
1
FERGUSON & COMPANY Section II
- ------------------ ----------
bank offices, 6 thrift offices, and 1 credit union office. Table II.3 shows that
from June 30, 1994 to 1996, Northfield's deposits increased by $1.662 million
(6.0%) while the overall market increased $30.274 million in deposits (3.7%).
Northfield's business plan projects that its deposits will grow at approximately
5% annually during the three year Plan, before an estimated withdrawal of
approximately $1.5 million of deposits for stock purchases.
Building permit information was not available by zip code. However, projected
population and income growth rates in Northfield's zip code portend adequate
building. Northfield has significant competition from other financial
institutions for the residential loan opportunities.
Growth opportunities for Northfield can be assessed by reviewing economic
factors in its market area. The salient factors include growth trends, economic
trends, and competition from other financial institutions. We have reviewed
these factors to assess the potential for the market area. In assessing the
growth potential of Northfield, we must also assess the willingness and
flexibility of management to respond to the competitive factors that exist in
the market area. Our analysis of the economic potential and the potential of
management affects the valuation of the Bank. Management has demonstrated its
flexibility through its long term planning on facilities and its restructuring
of the Bank's balance sheet in recent years to emphasize lending and de-
emphasize passive investments.
2
FERGUSON & COMPANY Section II
- ------------------ ----------
Table II.1 - Demographic Trends
Key Economic Indicators
United States, Maryland, Baltimore MSA (0720), Zip Code 21234
==============================================================================================================================
United MSA Zip Code
Key Economic Indicator States Maryland Baltimore - 0720 21234
------------------------------------------------------------------------------------------------------------------------------
Total Population, 2001 Est. 278,802,003 5,358,628 2,591,459 69,125
1996 - 2001 Percent Change, Est. 5.09 5.33 4.32 2.01
Total Population, 1996 Est. 265,294,885 5,087,442 2,484,101 67,760
1990 - 96 Percent Change, Est. 6.67 6.40 4.28 1.93
Total Population, 1990 248,709,873 4,781,468 2,382,172 66,477
------------------------------------------------------------------------------------------------------------------------------
Household Income, 2001 Est. 33,189 47,915 45,324 40,796
1996 - 2001 Percent Change, Est. (3.88) 4.49 4.93 0.78
Household Income, 1996 Est. 34,530 45,857 43,194 40,481
------------------------------------------------------------------------------------------------------------------------------
Per Capita Income, 1990 16,738 21,037 19,991 18,810
------------------------------------------------------------------------------------------------------------------------------
Household Income Distribution-2001 Est. (%)
$15,000 and less 20 12 14 11
$15,000 - $25,000 16 11 12 13
$25,000 - $50,000 34 32 33 40
$50,000 - $100,000 24 35 33 32
$100,000 - $150,000 4 8 7 4
$150,000 and over 2 3 3 1
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Unemployment rate, 1990 6.24 4.23 4.82 3.70
------------------------------------------------------------------------------------------------------------------------------
Median Age of Population, 1996 Est. 34.3 34.6 35.0 36.3
Median Age of Population, 1990 32.9 33.0 33.4 34.6
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Average Housing Value, 1990 79,098 142,451 123,885 97,220
------------------------------------------------------------------------------------------------------------------------------
Total Households, 2001 Est. 103,293,062 1,956,215 955,690 27,836
1996 - 2001 Percent Change, Est. 5.14 5.29 4.23 1.90
Total Households, 1996 98,239,161 1,858,013 916,918 27,316
1990 - 96 Percent Change, Est. 6.84 6.23 4.18 1.70
Total Households, 1990 91,947,410 1,748,991 880,145 26,859
------------------------------------------------------------------------------------------------------------------------------
Total Housing Units, 1990 101,641,260 1,891,917 928,076 27,743
% Vacant 10.07 7.55 5.16 3.23
% Occupied 89.93 92.45 94.84 96.77
% By Owner 57.78 60.11 60.38 62.42
% By Renter 32.15 32.33 34.45 34.35
==============================================================================================================================
Source: Scan/US, Inc.
3
FERGUSON & COMPANY Section II
- ------------------ ----------
Table II.2 - Percent Employment by Industry
United Baltimore
Industry States Maryland County
======================================= ======== =========== ===========
Construction/Agriculture/Mining 9.5 7.0 6.0
Manufacturing 17.7 8.0 1.0
Transportation/Utilities 7.1 5.0 5.0
Trade 21.2 25.0 27.0
Finance/Insurance 6.9 6.0 6.0
Services 32.7 30.0 30.0
Public Administration 4.8 19.0 15.0
Source: State of Maryland ESC.
4
FERGUSON & COMPANY Section II
- ------------------ ----------
Table II.3 - Market Area Deposits
- --------------------------------------------------------------------------------------------------------
1996 1995 1994
---------------- ----------------- -----------------
(in Thousands)
Zip Code 21234 Deposits
Total Northfield Federal Savings $ 29,268 $ 28,073 $ 27,606
---------------- ----------------- -----------------
Number of Branches 2 2 2
Other Thrifts (1) 210,676 206,134 246,085
---------------- ----------------- -----------------
Number 6 6 7
Number of branches 6 6 7
Total Thrifts 239,944 234,207 273,691
---------------- ----------------- -----------------
Number 7 7 8
Number of branches 8 8 9
Total Bank Deposits $ 603,748 $ 590,420 $ 539,745
---------------- ----------------- -----------------
Number 7 7 7
Number of Branches 15 15 13
Total Credit Union Deposits $ 1,359 $ 1,256 $ 1,341
---------------- ----------------- -----------------
Number 1 1 1
Number of Branches 1 1 1
Total Deposits $ 845,051 $ 825,883 $ 814,777
================ ================= =================
Percent of Deposits Held by
Northfield Federal 3.46% 3.40% 3.39%
================ ================= =================
- --------------------------------------------------------------------------------------------------------
Source: BranchSource, a product of Sheshunoff Information Services, Inc.
(1) Between June 30, 1994 and 1995, First Union Bank (bank) acquired a
branch from Household Bank (thrift). That office had $46.596 million in
deposits at June 30, 1994. This accounts for most of the $39.5 million
decrease in thrift deposits and $50.7 million increase in bank deposits
between 1994 and 1995.
5
SECTION III
COMPARISON WITH PUBLICLY
TRADED THRIFTS
FERGUSON & COMPANY Section III
- ------------------ -----------
III. COMPARISON WITH PUBLICLY TRADED THRIFTS
COMPARATIVE DISCUSSION
This section presents an analysis of Northfield Federal Savings ("Northfield"
or "Bank") relative to a group of 10 publicly traded thrift institutions
("comparative group"). Such analysis is necessary to determine the adjustments
that must be made to the pro forma market value of Northfield's stock. Table
III.1 presents a listing of the comparative group with general information about
the group. Table III.2 presents key financial indicators relative to
profitability, balance sheet composition and strength, and risk factors. Table
III.3 presents a pro forma comparison of Northfield to the comparative group.
Exhibits III and IV contain selected financial information on Northfield and the
comparative group. This information is derived from quarterly TFR's filed with
the OTS and call reports filed with the FDIC. The selection criteria and
comparison with the comparative group are discussed below.
Selection Criteria
Ideally, the comparative group would consist of thrifts in the same geographic
region with identical local economies, asset size, capital level, earnings
performance, asset quality, etc. However, there are few comparably sized
institutions with stock that is liquid enough to provide timely, meaningful
market values. Therefore, we have selected a group of comparatives that are
either listed on the New York Stock Exchange ("NYSE"), the American Stock
Exchange ("AMEX"), or Nasdaq. We excluded companies that are apparent takeover
targets and companies with unusual characteristics that tend to distort both
mean and median calculations. For example, we have excluded all companies with
losses during the trailing twelve months. We have also excluded mutual holding
companies (see Exhibit VI).
Because of the limited number of similar size thrifts with sufficient trading
volume, we looked for members of the comparative group among thrifts with assets
up to $100 million. The Mid-Atlantic Region, which includes Maryland, had four
thrifts that met the size requirements. We found 49 thrifts that met the asset
size requirements in the entire country (we consider 10 to be the minimum
number), and we retained 10 and eliminated 39 for the following reasons: (a) One
was a mutual holding company; (b) Two did not have PE ratios for the last
quarter and six had PE ratios over 35 for the last quarter; (c) Fourteen had
tangible equity under 10% or over 25% of assets; (d) Three had agreed to be
acquired; (e) Seven had non-performing assets in excess of 1.5% of assets; (f)
Four had loans under 50% of assets; and (g) Seven had loans serviced in excess
of 20% of assets. After eliminating the thrifts described above, there were 17
left. We then eliminated those with over $85 million in assets and reduced the
comparative group to 10.
The principal source of data was SNL Securities, Charlottesville, Virginia.
There are approximately 400 publicly traded thrifts listed on NYSE, AMEX, or
Nasdaq. In developing statistics for the entire country, we eliminated certain
institutions that skewed the results, in order to make the data more meaningful:
. We eliminated companies with losses,
. We eliminated indicated acquisition targets,
. We eliminated companies with price/earnings ratios in excess of 35, and
. We eliminated companies that had not reported as a stock institution for
one complete year.
The resulting group of 268 publicly traded thrifts is included in Exhibit V.
The selected group of comparatives has sufficient trading volume to provide
meaningful price data. Two of the comparative group members are located in the
Mid-Atlantic and the others are located in the Midwest (7) and Southeast (1)
Regions. With total assets of approximately $36.1 million, Northfield is well
below the group selected, which has average assets of $60.2 million and median
assets of $62.2 million.
1
FERGUSON & COMPANY Section III
- ------------------ -----------
Northfield's assets after conversion will continue to be much smaller than the
comparative group. Pro forma assets at the midpoint are $39.7 million.
PROFITABILITY
Using the comparison of profitability components as a percentage of average
assets, Northfield was below the comparative group in net income, 0.84% to
1.03%; net interest income, 3.33% to 3.82%; loss provisions, 0.36% to 0.04%;
noninterest income, 0.09% to 0.25%; and core income, 0.84% to 0.96%. Northfield
was above the comparative group in operating expense, 1.93% to 2.46%, and
efficiency ratio. 58.07% to 61.24%. Northfield's operating expense minus other
income was 1.84% versus 2.21% for the comparative group. After conversion,
deployment of the proceeds will provide additional income, and Northfield will
compare more favorably with the comparative group in terms of return on average
assets, with a return of 0.98% at the midpoint of the appraisal range. Pro
forma return on average equity is 5.78% at the midpoint, versus a mean of 4.99%
and median of 5.21% for the comparative group.
As compared with the comparative group, Northfield has a more desirable
operating expense ratio and efficiency ratio. Northfield is below the
comparative group in all other areas of operations shown on Table III.2.
Northfield has two impediments to earnings relative to the comparative group--1)
its net interest income as a percentage of assets; and 2) its ratio of interest
earning assets to interest bearing liabilities. The proceeds from the stock
sale will eliminate these two impediments. However, it will take some time and
asset growth to leverage the capital.
Balance Sheet Charateristics
The general asset composition of Northfield is similar to that of the
comparative group. Northfield has a lower level of passive investments with
16.11% of its assets invested in cash, investments, and mortgage-backed
securities, versus 26.48% for the comparative group. Northfield has a higher
percentage of its assets in loans, at 83.03% versus 71.22% for the comparative
group. Northfield's percentage of earning assets to interest costing
liabilities is much lower than that of the group. Northfield has 110.32% and
the comparative group averages 120.32%. After conversion, Northfield's ratio
will be level with that of the group of comparatives (121% at the midpoint).
The liability side differs mainly in that Northfield has a lower percentage of
borrowings, a higher percentage of deposits, and a lower percentage of equity.
Northfield has no borrowings versus 7.47% of assets for the comparative group
and deposits equal to 90.41% of assets versus 74.10% for the comparative group.
Northfield's equity is 8.02% of assets versus 17.19% for the comparative group.
Northfield's equity ratio after conversion will be level with that of the
comparative group. Northfield's pro forma equity ratio at the midpoint is 16.3%
(18.9% at the supermaximum).
Risk Factors
Northfield has a much higher level of non-performing assets than the
comparative group, at 1.15% of assets versus 0.38% for the comparative group.
However, Northfield's loss experience is nominal. Northfield's loan loss
allowance is 0.728% of net loans, which is in line with the comparative group at
0.63%. Its rate shock table indicates a 48% decline in net portfolio value at a
200 basis point increase in rates and a 96% decline in net portfolio value at a
400 basis point rate increase (see Table I.3). The comparative group
information indicates a negative 9.48% one year gap to assets. However, only 2
of the 10 members of the group reported their gap. Overall, we believe that
Northfield's interest rate risk position is much more exposed than that of the
comparative group.
Summary of Financial Comparison
Based on the above discussion of operational, balance sheet, and risk
characteristics of Northfield compared with the group, we believe that
Northfield's performance is slightly below that of the comparative
2
FERGUSON & COMPANY Section III
- ------------------ -----------
group, with the major shortcoming being excessive interest rate risk. The
conversion proceeds will improve several of Northfield's financial aspects, but,
after conversion, the Bank will continue to lag the comparative group in some
financial areas. Expansion of the earnings base is needed to leverage the
capital to achieve a reasonable return on equity.
FUTURE PLANS
Northfield's future plans are to be a well capitalized profitable institution
with good asset quality and a commitment to serving the needs of its trade area.
The business plan projects that the Bank will experience moderate growth,
leveraging the capital slowly.
In recent years, Northfield has experienced moderate growth (5.17% compound
annual growth in assets over the four year period from December 31, 1993, to
1997). The Bank's business plan projects that it will experience growth in
loans, savings deposits, and liquidity. The additional capital raised by the
sale of Common Stock will initially be used to purchase short term investment
securities.
Increasing market penetration by increasing the number of services and
products available, improving physical facilities, and branching are the most
likely methods of expanding Northfield's asset base.
3
FERGUSON & COMPANY Section III
- ------------------ -----------
Table III.1 - Comparatives General Characteristics
Total Current Current
Number Assets Stock Market
Type of ($000) Price Value
Ticker Short Name City State Thrift (1) Offices MRQ IPO Date ($) ($M)
CKFB CKF Bancorp Inc. Danville KY Trad. 1 62,865 01/04/95 19.500 16.91
HBBI Home Building Bancorp Washington IN Trad. 2 42,430 02/08/95 22.625 7.05
HCFC Home City Financial Corp. Springfield OH Trad. 1 70,110 12/30/96 18.625 16.85
LONF London Financial Corp. London OH Trad. 1 37,916 04/01/96 14.875 7.59
MIVI Mississippi View Holding Co Little Falls MN Trad. 1 68,619 03/24/95 18.375 13.60
NSLB NS&L Bancorp Inc. Neosho MO Trad. 2 59,817 06/08/95 17.375 12.26
PWBK Pennwood Bancorp Inc. Pittsburgh PA Trad. 3 47,211 07/15/96 22.000 12.11
SOBI Sobieski Bancorp Inc. South Bend IN Trad. 3 87,553 03/31/95 20.500 16.07
SSB Scotland Bancorp Inc. Laurinburg NC Trad. 2 61,473 04/01/96 10.125 19.38
USAB USABancshares, Inc. Philadelphia PA Trad. 1 64,269 NA 10.500 7.69
Maximum 3 87,553 22.625 19.38
Minimum 1 37,916 10.125 7.05
Average 2 60,226 17.450 12.95
Median 2 62,169 18.500 12.93
(1) Determined type thrift by reference to TAFS, which is derived
from quarterly reports filed with the OTS, and BankSource, which
is derived from quarterly reports filed with the FDIC. TAFS and
BankSource are published by Sheshunoff.
Source: SNL & F&C calculations
4
FERGUSON & COMPANY Table III.2 - Key Financial Indicators Section III
- ------------------ -----------
Northfield
Federal Comparative
Savings Group
---------------- ----------
Profitability
(% of average assets)
Net income (1) 0.84 1.03
Net interest income 3.33 3.82
Loss (recovery) provisions 0.36 0.04
Other operating income (2) 0.09 0.25
Operating expense (3) 1.93 2.46
Efficiency ratio (3) 58.07 61.24
Core income ( excluding gains
and losses on asset sales) (1) 0.84 0.96
Balance Sheet Factors
(% of assets)
Cash and investments 10.69 19.94
Mortgage-backed securities (including CMO's) 5.42 6.54
Loans 83.03 71.22
Savings deposits 90.41 74.10
Borrowings - 7.47
Equity 8.02 17.21
Tangible equity 8.02 17.19
Risk Factors
(%)
Earning assets/costing liabilities 110.32 120.32
Non-performing assets/assets 1.15 0.38
Loss allowance/non performing assets 52.17 141.24
Loss allowance/loans 0.72 0.63
One year gap/assets (4) NA (9.48)
(1) Used appraisal earnings.
(2) Excludes $32,000 in securities losses.
(3) Excludes $115,000 charge for deferred compensation.
(4) Only 2 of the 10 in the group reported one year gap.
Source: SNL Securities, F&C calculations,
and Offering Circular
5
FERGUSON & COMPANY Table III.3 - Pro Forma Comparisons Section III
- ------------------ -----------
Northfield Federal Savings
As of February 27, 1998
Ticker Name Price Mk Value PE P/Book P/TBook P/Assets Div Yld Assets
($) ($Mil) (X) (%) (%) (%) (%) ($000)
Northfield Federal
------------------
Before Conversion N/A N/A N/A N/A N/A N/A N/A 36,084
Pro Forma Supermaximum 10.000 5.95 14.9 77.0 77.0 14.5 2.00 40,919
Pro Forma Maximum 10.000 5.18 13.5 73.3 73.3 12.9 2.00 40,251
Pro Forma Midpoint 10.000 4.50 12.2 69.5 69.5 11.3 2.00 39,669
Pro Forma Minimum 10.000 3.83 10.8 64.9 64.9 9.8 2.00 39,088
Comparative Group
-----------------
Averages 17.450 12.95 24.3 123.9 124.2 21.5 1.72 60,226
Medians 18.500 12.93 20.8 119.0 119.0 20.3 1.69 62,169
Maryland Thrifts
----------------
Averages 20.675 50.79 27.5 178.3 178.3 21.5 1.49 242,580
Medians 21.625 38.46 29.2 170.6 170.6 17.4 1.73 264,904
Mid-Atlantic Region Thrifts
---------------------------
Averages 26.909 318.09 22.2 176.3 191.8 18.1 1.59 1,818,282
Medians 24.500 82.87 21.3 161.7 170.6 16.1 1.49 493,406
All Public Thrifts
------------------
Averages 25.861 293.65 21.3 173.6 181.7 19.1 1.68 1,765,084
Medians 22.250 65.62 20.6 159.7 165.7 17.8 1.63 357,691
Comparative Group
-----------------
CKFB CKFBancorp-KY 19.500 16.91 20.1 113.8 113.8 26.9 2.56 62,865
HBBI HomeBldngBncp-IN 22.625 7.05 20.8 109.8 109.8 16.6 1.33 42,430
HCFC HomeCityFinl-OH 18.625 16.85 NA 122.5 122.5 24.0 1.93 70,110
LONF LondonFinlCorp-OH 14.875 7.59 18.6 145.4 145.4 20.0 1.61 37,916
MIVI MissViewHldgCo-MN 18.375 13.60 19.6 109.1 109.1 19.8 1.74 68,619
NSLB NS&LBancorp-MO 17.375 12.26 27.2 104.6 105.4 20.7 2.88 59,817
PWBK PennwoodBancorp-PA 22.000 12.11 25.6 131.3 131.3 25.7 1.64 47,211
SOBI SobieskiBancorp-IN 20.500 16.07 31.1 115.5 115.5 17.9 1.56 87,553
SSB ScotlandBancorp-NC 10.125 19.38 15.6 131.0 131.0 31.5 1.98 61,473
USAB USABancshares-PA 10.500 7.69 40.4 156.0 158.4 12.0 - 64,269
6
FERGUSON & COMPANY Table III.3 - Pro Forma Comparisons Section III
- ------------------ -----------
Northfield Federal Savings
As of February 27, 1998
Ticker Name Eq/A TEq/A EPS ROAA ROAE
(%) (%) ($) (%) (%)
Northfield Federal
------------------
Before Conversion 8.0 8.0 N/A 0.84 9.88
Pro Forma Supermaximum 18.9 18.9 0.67 1.02 5.22
Pro Forma Maximum 17.5 17.5 0.74 1.00 5.49
Pro Forma Midpoint 16.3 16.3 0.82 0.98 5.78
Pro Forma Minimum 15.1 15.1 0.93 0.96 6.11
Comparative Group
-----------------
Averages 17.2 17.2 0.76 0.96 4.99
Medians 18.1 18.1 0.80 0.98 5.21
Maryland Thrifts
----------------
Averages 12.5 12.5 0.85 0.79 7.49
Medians 12.5 12.5 0.66 0.74 6.25
Mid-Atlantic Region Thrifts
---------------------------
Averages 10.8 10.3 1.29 0.88 8.91
Medians 9.4 8.9 1.09 0.81 8.46
All Public Thrifts
------------------
Averages 11.9 11.7 1.31 0.99 9.37
Medians 10.1 9.9 1.12 0.94 8.28
Comparative Group
-----------------
CKFB CKFBancorp-KY 21.9 21.9 0.97 1.37 5.84
HBBI HomeBldngBncp-IN 14.1 14.1 1.09 0.72 5.48
HCFC HomeCityFinl-OH 19.6 19.6 NA NA NA
LONF LondonFinlCorp-OH 13.8 13.8 0.80 1.00 5.21
MIVI MissViewHldgCo-MN 18.2 18.2 0.94 1.06 6.27
NSLB NS&LBancorp-MO 19.8 19.7 0.64 0.74 3.63
PWBK PennwoodBancorp-PA 18.0 18.0 0.86 0.98 5.28
SOBI SobieskiBancorp-IN 14.4 14.4 0.66 0.61 3.95
SSB ScotlandBancorp-NC 24.1 24.1 0.65 1.65 5.17
USAB USABancshares-PA 8.4 8.3 0.26 0.47 4.08
Note: Stock prices are closing prices or last trade. Pro forma
calculations for Northfield are based on sales at $10 a share
with a minimum of $3,825,000, midpoint of $4,500,000, maximum of
$5,175,000, and supermaximum of $5,591,250. Sources: Northfield
FSB's audited and unaudited financial Statements, SNL
Securities, and F&C calculations.
7
SECTION IV
CORRELATION OF MARKET
VALUE
FERGUSON & COMPANY SECTION IV
- ------------------ ----------
IV. CORRELATION OF MARKET VALUE
MARKETABILITY & LIQUIDITY OF STOCK TO BE ISSUED
Certain factors must be considered to determine whether adjustments are
required in correlating Northfield's market value to the comparative group.
Those factors include financial aspects, market area, management, dividends,
liquidity, thrift equity market conditions, and subscription interest.
This section addresses the aforementioned factors and the estimated pro
forma market value of the to-be-issued common shares and compares the resulting
market value of the Bank to the members of its comparative group and the
selected group of publicly held thrifts.
FINANCIAL ASPECTS
Section III includes a discussion regarding a comparison of Northfield's
earnings, balance sheet characteristics, and risk factors with its comparative
group. Table III.2 presents a comparison of certain key indicators, and Table
III.3 presents certain key indicators on a pro forma basis after conversion.
As shown in Table III.2, from an earnings viewpoint, Northfield is below
its comparative group in core income as a percentage of average assets (0.84%
for Northfield Versus 0.96% for the group). Northfield's core income is based on
appraisal earnings which factors out unusual or nonrecurring items and the
comparative group's core income is computed on the same basis. Northfield's net
interest income as a percent of assets is 3.33% versus 3.82% for the
comparatives. The difference is principally attributable to Northfield's lower
ratio of interest-earning assets to interest-bearing liabilities, which is
caused by its lower capital position. Exhibit III, page 2 indicates that
Northfield's yield/cost spread was in the 55th percentile for calendar year
1994, the 58th percentile for calendar year 1995, the 49th percentile for
calendar year 1996, and the 48th percentile for the nine months ending September
30, 1997. Generally, this means that Northfield's net interest margin was near
the middle of the banks in its asset range. The peer group that Northfield is
compared to is all thrifts with assets between $25 million and $50 million
filing TFR reports with the OTS.
Northfield's loan loss experience is nominal, as is the case with its
comparative group. However, in 1997, Northfield made a larger than normal loss
provision, ostensibly in recognition of a shortage in the allowance balance.
Northfield's other operating income is 0.09% of average assets, versus 0.25% for
the comparative group. Northfield's lower ratio results from its business mix.
Northfield's operating expense ratio, at 1.93% of average assets, is well
below that of the comparative group, which is 2.46%. Northfield's lower ratio
results from its more traditional business mix and inexpensive facilities.
After Northfield completes its stock conversion, its core income as a
percentage of average assets will increase. Table III.3 projects that
Northfield's return on assets will be 0.98% at the midpoint, versus a mean of
0.96% and median of 0.98% for the comparative group.
Northfield's pro forma equity to assets ratio at the midpoint is 16.3%,
versus a mean of 17.2% and median of 18.1% for the comparative group.
Northfield's pro forma return on equity is 5.78% at the midpoint versus a mean
of 4.99% and median of 5.21% for the comparative group.
We made adjustments to Northfield's recorded earnings for appraisal
purposes for the following non-recurring or non-core items: 1) Higher than
normal loan loss provision; 2) Loss on sale of investments; and 3) A new
directors' deferred compensation plan. Set forth below is a reconciliation of
appraisal earnings:
1
FERGUSON & COMPANY SECTION IV
- ------------------ ----------
TABLE IV.1 - APPRAISAL EARNINGS ADJUSTMENTS
Net income, year ended December 31, 1997 $145,000
----------------
Add back excessive loan loss provision--123,000 less 40,000 83,000
Add back loss on sale of available for sale securities 32,000
Add back deferred compensation 115,000
----------------
Pretax adjustments 230,000
Less related income taxes at 38% 88,000
----------------
Net appraisal earning adjustments 142,000
Appraisal earnings, year ended December 31, 1997 $287,000
================
Northfield's asset composition is more active than the comparative group.
Northfield has a higher ratio of loans to assets, lower ratio of investments and
mortgage-backed securities to assets, higher ratio of deposits to assets, lower
ratio of borrowings to assets, and lower ratio of equity to assets. From the
risk factor viewpoint, Northfield is slightly below the comparative group.
Northfield has a higher level of non performing assets, though it has a low
write off experience. Northfield's loan loss allowance is 0.72% of net loans,
compared with the comparative group, which is 0.63%. Its ratio of interest
earning assets to interest bearing liabilities (110.32%) is well below the
comparative group (120.32%). Northfield's ratio will exceed the comparative
group after conversion. At the midpoint, Northfield's ratio would be
approximately 121%, and at the supermaximum, it would be approximately 125%.
From an interest rate risk factor, Northfield probably has more exposure than
the comparative group.
We believe that NO ADJUSTMENT is necessary relative to financial aspects of
Northfield.
MARKET AREA
Section II describes Northfield's market area.
We believe that NO ADJUSTMENT is required for Northfield's market area.
MANAGEMENT
The President, who functions as CEO, has been with Northfield 14 years,
serving as CEO continuously since joining the Bank. The Vice President and Chief
Financial Officer has been with the Bank for 5 years, serving in his present
capacity since 1997. The Vice President and Compliance Officer has been with the
Bank for 14 years, serving as Vice President since 1987. Northfield has a
management succession plan.
We believe NO ADJUSTMENT is required for Northfield's management.
DIVIDENDS
Table III.3 provides dividend information relative to the comparative group
and the thrift industry as a whole. The comparative group is paying a mean yield
on price of 1.72% and a median of 1.69%, while all public thrifts are paying a
mean of 1.68% and median of 1.63%. Northfield intends to pay an initial dividend
rate of $.20 annually, or 2% on the issue price of $10.00.
We believe that NO ADJUSTMENT is required relative to Northfield's
intention to pay dividends.
2
FERGUSON & COMPANY SECTION IV
- ------------------ ----------
LIQUIDITY
The Holding Company has never issued capital stock to the public, and as a
result, no existing market for the Common Stock exists. Although the Holding
Company intends to list its Common Stock over the counter through the OTC
"Electronic Bulletin Board," there can be no assurance that a liquid trading
market will develop.
A public market having the desirable characteristics of depth, liquidity,
and orderliness depends upon the presence, in the market place, of both willing
buyers and sellers of the Common Stock. These characteristics are not within the
control of the Bank or the market.
The peer group includes companies with sufficient trading volume to develop
meaningful pricing characteristics for the stock. The market value of the
comparative group ranges from $7.05 million to $19.38 million, with a mean value
of $12.95 million. The midpoint of Northfield's valuation range is $4.5 million
at $10 a share, or 450,000 shares.
We believe that a slight DOWNWARD ADJUSTMENT is required relative to the
liquidity of Northfield's stock.
THRIFT EQUITY MARKET CONDITIONS
The SNL Thrift Index is summarized in Figure IV.1. As the table
demonstrates, the Thrift Index has performed well since the end of 1990. The
Index has grown as follows: Year ended December 31, 1991--increased 49.0% from
96.6 to 143.9; Year ended December 31, 1992--increased 39.7% to 201.1; Year
ended December 31, 1993--increased 25.6% to 252.5; Year ended December 31,
1994--decreased 3.1% to 244.7; Year ended December 31, 1995--increased 53.9% to
376.5; Year ended December 31, 1996--increased 28.4% to 483.6; Year ended
December 31, 1997--increased 69.3% to 814.1; and Period ended February 27,
1998--increased 0.6% to 818.7. It is market value weighted with a base value of
100 as of March 31, 1984.
As shown in Figure IV.1, which is a graph of the SNL Thrift Index covering
from December 31, 1990 through February 27, 1998, the market, as depicted by the
index, has experienced fluctuations recently. It dipped in the latter part of
1994, but recovered during the first quarter of 1995. During 1995, the Index
continued a more robust increase and moved from 244.7 at year end 1994 to 376.5
by December 31, 1995, an increase of 53.9%. However, the Index was flat for the
first six months of 1996, but it has picked up since June 30, 1996. It closed
1996 at 483.6, up 28.4% from 1995. It closed 1997 at 814.1, a robust growth of
68.3% for the year. It is up 0.6% (to 818.7) from December 31, 1997 to February
27, 1998, after dropping 5.6% to 768.3 during January 1998.
The increase in the SNL Index, in general, has been parallel with the
increases in other equity markets with some interim fluctuations caused by
changes or anticipated changes in interest rates. Another factor, however, is
also notable. In other markets, increased prices are responding to improved
profits, with price to earnings ratios increasing as earnings potentials are
anticipated. However, the thrift IPO market has been affected by speculation
that the majority of the institutions will become viable consolidation
candidates and sell at some expanded multiple of book value.
MARYLAND ACQUISITIONS
Table IV.2 provides information relative to acquisitions of financial
institutions in Maryland announced during 1997. There were two thrift
acquisitions and two bank acquisitions announced during that time frame.
Currently, there are six publicly held thrifts in the State of Maryland. There
are 91 publicly held thrifts in the Mid-Atlantic region of the country. Bank
acquisitions in Maryland in 1997 averaged 235.9% of book value and 16.4 times
earnings. Thrifts generally sell at lower price/book multiples than do banks.
Thrifts in Maryland during that period averaged 191.2% of book value and 42.5
times earnings.
3
FERGUSON & COMPANY SECTION IV
- ------------------ ----------
EFFECT OF INTEREST RATES ON THRIFT STOCK
The current interest rate environment and the anticipated rate environment
will affect the pricing of thrift stocks and all other interest sensitive
stocks. As the economy continues to expand, the fear of inflation can return.
The Federal Reserve, in its resolve to curb inflation, has increased rates in
the past, but has more recently relented and passed several opportunities to
increase rates until March 25, 1997, when the Federal Open Market Committee
("FOMC") increased the discount rate 25 basis points. In some minds, this was an
attempt to head off inflationary trends. According to the FOMC, "This action was
taken in light of persisting strength in demand, which is progressively
increasing the risk of inflationary imbalances developing in the economy that
would eventually undermine the long expansion."/1/ This increase was clearly
telegraphed by Chairman Greenspan who voiced concern about the levels of the
equity markets. Following the March 25 increase, unemployment rates were
announced at the 5.2% level, down from the 5.5% level at the beginning of 1996,
and significantly down from the 6.7% level at the beginning of 1994./2/ The good
news about unemployment gave way to speculation that the March 25th increase was
just the first of at least two or three increases, and the speculation was given
some credence at that time by rises in the Employment Cost index, an increase in
Unit Labor Cost, and an upward trend in the price of crude oil. By April 1,
1997, following the rate increase, the equities markets lost all of the gains
registered since the first of the year. By the end of April 1997, the market had
begun a rebound and has trended upward since then. There have been specific days
of price adjustment, but the overall trend is up. Chairman Greenspan, in recent
public appearances, has not articulated concerns about market levels and
inflation. Since the significant market adjustment that occurred on October 21,
1997, the Federal Reserve has publicized inaction. The market reaction to the
inaction has been mixed--generally regarded as a neutral response.
The thrift equities market is following the market in general. However, the
thrift equities market can continue to be influenced by the speculation that
there will eventually be a buyout, and the fact that thrift IPO stock can be
purchased at significant discounts from book value. These two facts could keep
the thrift equities market from falling as much as the other general markets.
Large mergers are likely to slow. But at the regional level, merger activity is
likely to continue.
What is likely to happen in the short to intermediate term is that rates
will float around current levels, but will be trending downward for the next few
months. By year end, the long bond could be as low as 5.40%. The GDP is likely
to grow at a rate of 2.5% to 3.0%, with most of the growth coming in the first
half of the year. Inflation will moderate at between 1.5% and 2.0% for the year.
With the Federal Reserve always ready to raise (or lower) rates as economic
conditions warrant, it is likely that before this expansion cycle is over,
interest rates will rise. The supply and demand portion of the equation is
nicely balanced, and a continuation of such equilibrium will probably restrain
rising rates in the near term. It is even possible that in the short-term,
interest rates might ease a bit.
The consumer seems happier now than in the past. Job markets are strong and
the unemployment rate was recently 4.6%--the lowest since November 1973.
Consumer confidence is at a 28 year high. Our continuing economic health has
always been dependent upon meaningful consumer participation, because consumers
(household sector) actually account for 68% of the Gross Domestic Product
("GDP").
In the second quarter of 1997, consumers seemed to rein in their
consumption. This lowering of consumption may be only to catch their economic
breath and repay credit card debt and other personal debt which has accumulated.
Manufacturing is still strong, even with the slight drop in retail sales, home
purchases and other big ticket items.
- ---------------
/1/ US Financial Data, published by the Research Division of the Federal Reserve
Bank of St. Louis, MO.
/2/ National Economic Trends, the Federal Reserve Bank of St. Louis, MO.
4
FERGUSON & COMPANY SECTION IV
- ------------------ ----------
With consumer confidence at a high level, jobs plentiful, inflation
seemingly in check, and the economy healthy and continuing to expand, why
shouldn't the economy continue to roll onward and upward? From an analytical
view, there is one thing on the economic horizon that could negatively impact
our economy--the Pacific Rim countries are in depression. Some of the Pacific
Rim countries will resist or only pay "lip service" to the IMF requirements.
These economies have only one way out of their problems--exports. They will
begin to export at very low prices and this will have a negative impact on the
United States corporate profits. Our corporate profits will be hit from two
directions with the Pacific Rim problems--1) competition from exports as we have
discussed coupled with 2) loss of sales by the United States due to economic
inability of the Pacific Rim customers to buy our products and services.
Thrift net interest margins have remained stable. The equilibrium in the
supply and demand portion of the interest rate market has helped continue the
profitability mode of the industry that started in 1993. Access to mortgage-
backed securities and derivatives has made it possible for many to be profitable
without making loans in significant volumes. With reduced deposit insurance
premiums, perhaps they will become more willing to compete for customer
deposits.
As clearly illustrated, the SNL Thrift Index has performed well over the
last seven years. It moved in tandem with all interest sensitive stocks and
reflected the weakness in the market as investors began to consider the
importance of increases in rates and their impact on the net interest margins of
thrifts. The clear implication is that rising interest rates will have a
negative impact on earnings.
Figure IV.2 graphically displays the rate environment since September 12,
1997. At that time, the yield curve was relatively flat, with only a 105 basis
point ("BP") difference between the one year treasury bill rate and the 30 year
treasury. Since that time, the yield curve has become flatter, with a 52 BP
spread between the one year treasury bill rate and the 30 year treasury rate at
February 27, 1998.
At September 12, 1997, the spread between the 1 year T-Bill and the 5 year
T-Note was 64 BP, and the spread between the 5 year T-Note and the 30 year bond
was 41 BP. On February 27, 1998, the spreads were 18 and 34 BP, respectively.
From September 12, 1997, to February 27, 1998, the Fed Funds rate increased
3 BP and the Prime Rate did not change.
Increased cost of funds will serve to narrow the net interest margins of
thrifts. A thrift's ability to maintain net interest margins through business
cycles is important to investors, unless thrifts can offset the decline in net
interest income by other sources of revenue or reductions in noninterest
expense. The former is difficult and the latter is unlikely.
Northfield, with its level of interest rate risk, is highly vulnerable to
rising rates. However, such risk will be reduced by the additional capital
arising from the conversion.
During 1993, conversion stocks often experienced first day 30% or more
increases in value. As Table IV.3 shows, recent price appreciation has become
quite robust, surpassing 1993 levels. Table IV.3 provides information on 13
conversions completed since August 31, 1997 and listed on major exchanges. The
average change in price since conversion is a gain of 63.6% and the median
change is a gain of 66.6%. Within that group, all have increased in value with a
range of a low of 43.1% to a high of 81.3%. The average increase in value at one
day, one week, and one month after conversion has been 54.0%, 56.6%, and 53.3%,
respectively. The median increase in value at one day, one week, and one month
after conversion has been 50.6%, 60.0%, and 56.3%, respectively.
Because of the lack of complete earnings information on recent conversions,
a meaningful comparison of the price earnings ratios is difficult to make.
However, there is information, albeit limited, to review the price to book
ratio. The average price-to-book ratio, as of February 27, 1998, is 115.2% and
the
5
FERGUSON & COMPANY SECTION IV
- ------------------ ----------
median is 115.2%. That compares to the offering price to pro forma book, where
the average was 76.8% and the median was 76.6%.
Table IV.4 provides information on 13 pink sheet conversions completed
since February 28, 1997. The average change in price since conversion is a gain
of 50.6% and the median change is a gain of 55.0%. Within that group, all have
increased in value with a range of a low of 26.2% to a high of 75.0%. The
average increase in value at one day, one week, and one month after conversion
has been 37.4%, 37.3%, and 40.9%, respectively. The median increase in value at
one day, one week, and one month after conversion has been 37.5%, 36.9%, and
41.3%, respectively.
Because of the lack of complete earnings information on recent conversions,
a meaningful comparison of the price earnings ratios is difficult to make.
However, there is information to review the price to book ratio. The average
price-to-book ratio, as of February 27, 1998, is 99.0% and the median is 99.0%.
That compares to the offering price to pro forma book, where the average was
71.6% and the median was 72.3%.
We believe a DOWNWARD ADJUSTMENT is required for the new issue discount.
ADJUSTMENTS CONCLUSION
Adjustments Summary
- --------------------------------------------------------------------------------
NO CHANGE UPWARD DOWN
Financial Aspects X
Market Area X
Management X
Dividends X
Liquidity X
Thrift Equity Market Conditions X
- --------------------------------------------------------------------------------
VALUATION APPROACH
Typically, investors rely on the price/earnings ratio as the most
appropriate indicator of value. We consider price/earnings to be one of the
important pricing methods in valuing a thrift stock. Price/book is a well
recognized yardstick for measuring the value of financial institution stocks in
general. Another method of viewing thrift values is price/assets, which is more
meaningful in situations where the subject is thinly capitalized. Given the
healthy condition of the thrift industry today, more emphasis is placed on
price/earnings and price/book. Generally, price/earnings and price/book should
be considered in tandem.
Table III.3 presents Northfield's pro forma ratios and compares them to the
ratios of its comparative group and the publicly held thrift industry as a
whole. Northfield's net income for the twelve months ended December 31, 1997,
was approximately $145,000, with adjustments of $142,000 required to determine
appraisal earnings of $287,000. The Bank's capital level after conversion will
reduce its interest rate risk; however, it will continue to have significant
interest rate risk exposure from rising rates. The Bank projects healthy growth.
The comparative group traded at an average of 24.3 times earnings at
February 27, 1998, and at 123.9% of book value. The comparative group traded at
a median of 20.8 times earnings and a median of 119.06% of book value. At the
midpoint of the valuation range, Northfield is priced at 12.2 times earnings and
69.5% of book value. At the maximum end of the range, Northfield is priced at
13.5 times earnings and
6
FERGUSON & COMPANY SECTION IV
- ------------------ ----------
73.3% of book value. At the supermaximum, Northfield is priced at 14.9 times
earnings and 77.0% of book value.
The midpoint valuation of $4,500,000 represents a discount of 43.9% from
the average and a discount of 41.6% from the median of the comparative group on
a price/book basis. The price/earnings ratio for Northfield at the midpoint
represents a discount of 49.8% from the comparative group's mean and a discount
of 41.3% from the median price/earnings ratio.
The maximum valuation of $5,175,000 represents a discount of 40.8% from the
average and 38.4% from the median of the comparative group on a price/book
basis. The price/earnings ratio for Northfield at the maximum represents a
discount of 44.4% from the average and a discount of 35.1% from the median of
the comparative group.
As shown in Table IV.3, conversions closing since August 31, 1997, have
closed at an average price to book ratio of 76.8% and median of 76.6%.
Northfield's pro forma price to book ratio is 69.5% at the midpoint, 73.3% at
the maximum, and 77.0% at the supermaximum of the range. At the midpoint,
Northfield is 9.5% below the average and 9.3% below the median. At the maximum
of the range, Northfield is 4.6% below the average and 4.3% below the median. At
the supermaximum of the range, Northfield's pro forma price to book ratio is
0.3% above the average and 0.5% above the median.
As shown in Table IV.4, pink sheet conversions closing since February 28,
1997, have closed at an average price to book ratio of 71.6% and median of
72.3%. Northfield's pro forma price to book ratio is 69.5% at the midpoint,
73.3% at the maximum, and 77.0% at the supermaximum of the range. At the
midpoint, Northfield is 2.9% below the average and 3.9% below the median. At the
maximum of the range, Northfield is 2.4% above the average and 1.4% above the
median. At the supermaximum of the range, Northfield's pro forma price to book
ratio is 7.5% above the average and 6.5% above the median.
VALUATION CONCLUSION
We believe that as of February 27, 1998, the estimated pro forma market
value of Northfield was $4,500,000. The resulting valuation range was $3,825,000
at the minimum to $5,175,000 at the maximum, based on a range of 15% below and
15% above the midpoint valuation. The supermaximum is $5,951,250, based on 1.15
times the maximum. Pro forma comparisons with the comparative group are
presented in Table III.3 based on calculations shown in Exhibit VII.
7
FERGUSON & COMPANY TABLE IV.2 - MARYLAND ACQUISITIONS SECTION IV
- ------------------ (ANNOUNCED IN 1997) ----------
Seller: Seller: Ann'd
1:Total 1:Eqty/ Deal Pr/
Announce Assets Assets Assets
Buyer ST Seller ST TYPE Date ($000) (%) (%)
Fulton Finl Corp PA Peoples Bk, Elkton MD B 03/18/97 92,324 10.7 23.2
MainStreet BnGp Inc VA Commerce Bank Corp MD B 06/24/97 69,315 8.1 20.6
Provident Bkshrs MD First Citizens Fin'l MD T 03/11/97 687,196 6.1 15.1
Crestar Financial VA American Natl Bncp MD T 06/23/97 505,318 9.0 15.2
Maximum 687,196 10.7 23.2
Minimum 69,315 6.1 15.1
Average 338,538 8.5 18.5
Median 298,821 8.5 17.9
Average-banks 80,820 9.4 21.9
Median-banks 80,820 9.4 21.9
Average-thrifts 596,257 7.5 15.2
Median-thrifts 596,257 7.5 15.2
8
SOURCE: SNL & F&C CALCULATIONS
FERGUSON & COMPANY TABLE IV.2 - MARYLAND ACQUISITIONS SECTION IV
- ------------------ (ANNOUNCED IN 1997) ----------
Ann'd Ann'd Ann'd Ann'd Seller: Seller:
Deal Deal Pr/ Deal TgBk Prem/ 1:YTD 1:YTD
Pr/Bk 4-Qtr Pr/Deps CoreDeps ROAA ROAE
Seller (%) EPS (x) (%) (%) (%) (%)
Peoples Bk, Elkton 216.0 17.2 27.5 16.7 1.42 12.59
Commerce Bank Corp 255.9 15.6 26.4 20.0 1.42 17.16
First Citizens Fin'l 220.9 31.6 19.3 11.6 0.48 7.98
American Natl Bncp 161.5 53.3 23.4 10.6 0.29 3.13
Maximum 255.9 53.3 27.5 20.0 1.42 17.16
Minimum 161.5 15.6 19.3 10.6 0.29 3.13
Average 213.6 29.4 24.1 14.7 0.90 10.22
Median 218.4 24.4 24.9 14.1 0.95 10.29
Average-banks 235.9 16.4 27.0 18.3 1.42 14.88
Median-banks 235.9 16.4 27.0 18.3 1.42 14.88
Average-thrifts 191.2 42.5 21.3 11.1 0.39 5.56
Median-thrifts 191.2 42.5 21.3 11.1 0.39 5.56
9
SOURCE: SNL & F&C CALCULATIONS
FERGUSON & COMPANY TABLE IV.3 - RECENT CONVERSIONS SECTION IV
- ------------------ (COMPLETED SINCE AUGUST 31, 1997) ----------
Conversion Gross Offering
Assets Proceeds Price
Ticker Short Name State IPO Date ($000) ($000) ($)
RCBK Richmond County Financial Corp NY 02/18/98 993,370 244,663 10.000
HFBC HopFed Bancorp Inc. KY 02/09/98 202,496 40,336 10.000
TSBK Timberland Bancorp Inc. WA 01/13/98 206,188 66,125 10.000
MYST Mystic Financial Inc. MA 01/09/98 149,653 27,111 10.000
UTBI United Tennessee Bankshares TN 01/05/98 64,189 14,548 10.000
PEDE Great Pee Dee Bancorp SC 12/31/97 60,538 21,821 10.000
UCBC Union Community Bancorp IN 12/29/97 84,291 30,418 10.000
WSBI Warwick Community Bancorp NY 12/23/97 286,545 66,065 10.000
SIB Staten Island Bancorp Inc. NY 12/22/97 2,144,500 515,775 12.000
HCBC High Country Bancorp Inc. CO 12/10/97 76,324 13,225 10.000
FSFF First SecurityFed Financial IL 10/31/97 260,002 64,080 10.000
OTFC Oregon Trail Financial Corp. OR 10/06/97 204,213 46,949 10.000
SHSB SHS Bancorp Inc. PA 10/01/97 81,688 8,200 10.000
Maximum 2,144,500 515,775 12.000
Minimum 60,538 8,200 10.000
Average 370,307 89,178 10.154
Median 202,496 40,336 10.000
10
SOURCE: SNL & F&C CALCULATIONS
FERGUSON & COMPANY TABLE IV.3 - RECENT CONVERSIONS SECTION IV
- ------------------ (COMPLETED SINCE AUGUST 31, 1997) ----------
Conversion Pricing Ratios
--------------------------------------------------------------
Price/ Price/ Price/ Price/ Current Current Current
Pro-Forma Pro-Forma Pro-Forma Adjusted Stock Price/ Price/ Tang
Book Value Tang. Book Earnings Assets Price Book Value Book Value
Ticker (%) (%) (x) (%) ($) (%) (%)
RCBK 79.6 79.6 14.0 19.8 16.656 NA NA
HFBC 75.4 75.4 12.4 16.6 17.313 NA NA
TSBK 81.5 81.5 10.5 24.3 17.625 NA NA
MYST 77.8 77.8 17.5 15.3 17.000 NA NA
UTBI 76.6 76.6 18.4 18.5 14.313 NA NA
PEDE 73.9 73.9 15.9 26.5 15.875 112.2 112.2
UCBC 74.1 74.1 13.5 26.5 14.625 NA NA
WSBI 78.6 78.6 13.7 18.7 16.000 NA NA
SIB 80.6 83.0 14.1 19.4 20.500 NA NA
HCBC 77.7 77.7 30.5 14.8 14.750 NA NA
FSFF 75.2 75.2 14.9 19.8 15.375 NA NA
OTFC 76.6 76.6 18.5 18.7 18.125 118.2 118.2
SHSB 70.7 70.7 13.9 9.1 18.000 NA NA
Maximum 81.5 83.0 30.5 26.5 20.500 118.2 118.2
Minimum 70.7 70.7 10.5 9.1 14.313 112.2 112.2
Average 76.8 77.0 16.0 19.1 16.627 115.2 115.2
Median 76.6 76.6 14.1 18.7 16.656 115.2 115.2
11
SOURCE: SNL & F&C CALCULATIONS
FERGUSON & COMPANY TABLE IV.3 - RECENT CONVERSIONS SECTION IV
- ------------------ (COMPLETED SINCE AUGUST 31, 1997) ----------
Post Conversion Price Change
Price One Price One Price One ------------------------------------------------------------
Day After Week After Month After One One One To
Conversion Conversion Conversion Day Week Month Date
Ticker ($) ($) ($) (%) (%) (%) (%)
RCBK 16.313 16.438 NA 63.1 64.4 NA 66.6
HFBC 16.813 16.000 NA 68.1 60.0 NA 73.1
TSBK 14.500 16.000 16.000 45.0 60.0 60.0 76.3
MYST 14.438 15.625 15.000 44.4 56.3 50.0 70.0
UTBI 14.750 13.750 14.250 47.5 37.5 42.5 43.1
PEDE 16.125 15.500 14.875 61.3 55.0 48.8 58.8
UCBC 14.688 14.250 14.250 46.9 42.5 42.5 46.3
WSBI 15.625 17.000 15.625 56.3 70.0 56.3 60.0
SIB 19.063 19.438 19.188 58.9 62.0 59.9 70.8
HCBC 14.438 15.063 14.500 44.4 50.6 45.0 47.5
FSFF 15.063 15.125 16.063 50.6 51.3 60.6 53.8
OTFC 16.750 16.375 16.125 67.5 63.8 61.3 81.3
SHSB 14.750 16.250 16.000 47.5 62.5 60.0 80.0
Maximum 19.063 19.438 19.188 68.1 70.0 61.3 81.3
Minimum 14.438 13.750 14.250 44.4 37.5 42.5 43.1
Average 15.640 15.909 15.625 54.0 56.6 53.3 63.6
Median 15.063 16.000 15.625 50.6 60.0 56.3 66.6
12
SOURCE: SNL & F&C CALCULATIONS
FERGUSON & COMPANY TABLE IV.4 - RECENT PINK SHEET CONVERSIONS SECTION IV
- ------------------ (COMPLETED SINCE FEBRUARY 28, 1997) ----------
Conversion
Assets IPO Proceeds IPO Price
Ticker Short Name State IPO Date ($000) ($000) ($)
SFSH SFSB Holding Co. PA 02/27/98 37,810 7,260 10.000
WPBC Wyman Park Bancorp MD 01/07/98 62,241 10,117 10.000
DFFN Delaware First Financial Corp. DE 01/05/98 112,545 11,570 10.000
CDLC Coddle Creek Financial Corp. NC 12/31/97 114,162 33,724 50.000
NARK North Arkansas Bancshares Inc. AR 12/19/97 34,379 3,703 10.000
OSFS Ohio State Financial Services OH 09/29/97 33,929 6,332 10.000
CIBC Citizens Bancorp Inc. IN 09/18/97 45,153 10,580 10.000
WSBH WSB Holding Co. PA 08/29/97 33,139 3,306 10.000
SCYT Security Bancorp Inc. TN 06/30/97 44,121 4,364 10.000
SVBC Sistersville Bancorp Inc. WV 06/26/97 26,258 6,614 10.000
SFBK SFB Bancorp Inc. TN 05/30/97 46,579 7,670 10.000
RFFC Rocky Ford Financial Inc. CO 05/22/97 20,388 4,232 10.000
VBAS Vermilion Bancorp Inc. IL 03/26/97 35,459 3,968 10.000
Maximum 114,162 33,724 50.000
Minimum 20,388 3,306 10.000
Average 49,705 8,726 13.077
Median 37,810 6,614 10.000
13
SOURCE: SNL & F&C CALCULATIONS
FERGUSON & COMPANY TABLE IV.4 - RECENT PINK SHEET CONVERSIONS SECTION IV
- ------------------ ----------
(COMPLETED SINCE FEBRUARY 28, 1997)
Conversion Pricing Ratios
-----------------------------------------------------------
Price/ Price/ Price/ Price/ Current Current Current Current
Pro-Forma Pro-Forma Pro-Forma Adjusted Stock Price/ Price/ Tang Price/
Book Value Tang. Book Earnings Assets Price Book Value Book Value Earnings
Ticker (%) (%) (x) (%) ($) (%) (%) (x)
SFSH 76.0 76.0 NA 16.1 12.813 NA NA NA
WPBC 75.0 75.0 28.4 14.0 15.870 NA NA NA
DFFN 73.7 73.7 20.6 9.3 13.120 NA NA NA
CDLC 77.9 77.9 22.3 22.8 79.120 NA NA NA
NARK 72.3 72.3 NA 9.7 12.620 86.6 86.6 NA
OSFS 63.3 63.3 17.0 15.7 17.500 106.3 106.3 NA
CIBC 73.5 73.5 16.1 19.0 15.250 104.7 104.7 19.1
WSBH 71.4 71.4 NA 9.1 15.000 101.3 101.3 75.0
SCYT 72.9 72.9 18.1 9.0 16.375 109.5 109.5 12.4
SVBC 65.4 65.4 26.7 20.1 15.750 95.3 95.3 23.2
SFBK 69.6 69.6 17.7 14.1 15.500 99.0 99.0 14.4
RFFC 68.8 68.8 17.7 17.2 14.500 93.3 93.3 33.0
VBAS 71.4 71.4 NA 10.1 15.625 95.3 95.3 21.7
Maximum 77.9 77.9 28.4 22.8 79.120 109.5 109.5 75.0
Minimum 63.3 63.3 16.1 9.0 12.620 86.6 86.6 12.4
Average 71.6 71.6 20.5 14.3 19.926 99.0 99.0 28.4
Median 72.3 72.3 18.1 14.1 15.500 99.0 99.0 21.7
Source: SNL & F&C calculations
14
FERGUSON & COMPANY TABLE IV.4 - RECENT PINK SHEET CONVERSIONS SECTION IV
(COMPLETED SINCE FEBRUARY 28, 1997)
Price One Price One Price One Post Conversion Price Change
-------------------------------------------------------------
Day After Week After Month After One One One To
Conversion Conversion Conversion Day Week Month Date
Ticker ($) ($) ($) (%) (%) (%) (%)
SFSH 12.813 NA NA 28.1 NA NA 28.1
WPBC 13.750 13.620 14.620 37.5 36.2 46.2 58.7
DFFN NA 11.960 12.750 NA 19.6 27.5 31.2
CDLC 77.000 77.620 79.370 54.0 55.2 58.7 58.2
NARK 12.500 12.750 13.000 25.0 27.5 30.0 26.2
OSFS 15.500 15.370 14.960 55.0 53.7 49.6 75.0
CIBC 14.000 14.000 15.000 40.0 40.0 50.0 52.5
WSBH 13.500 13.500 13.750 35.0 35.0 37.5 50.0
SCYT 14.500 15.000 15.250 45.0 50.0 52.5 63.8
SVBC 13.750 13.875 14.250 37.5 38.8 42.5 57.5
SFBK 13.813 13.750 14.000 38.1 37.5 40.0 55.0
RFFC 13.000 13.125 13.500 30.0 31.3 35.0 45.0
VBAS 12.375 12.250 12.125 23.8 22.5 21.3 56.3
Maximum 77.000 77.620 79.370 55.0 55.2 58.7 75.0
Minimum 12.375 11.960 12.125 23.8 19.6 21.3 26.2
Average 18.875 18.902 19.381 37.4 37.3 40.9 50.6
Median 13.750 13.685 14.125 37.5 36.9 41.3 55.0
Source: SNL & F&C calculations
15
FERGUSON & COMPANY Table IV.5 Section IV
- ------------------ ----------
Comparison of Pricing Ratios
Group Percent Premium
Northfield Compared to (Discount) Versus
----------------------------- -------------------------------
Federal Average Median Average Median
--------------- ------------- -------------- -------------- ----------------
Comparison of PE ratio at
midpoint to:
- ----------------------------------------------
Comparative group 12.2 24.3 20.8 (49.8) (41.3)
Maryland thrifts 12.2 27.5 29.2 (55.6) (58.2)
Mid-Atlantic Region thrifts 12.2 22.2 21.3 (45.0) (42.7)
All public thrifts 12.2 21.3 20.6 (42.7) (40.8)
Recent conversions 12.2 16.0 14.1 (23.8) (13.5)
Recent pink sheet conversions 12.2 20.5 18.1 (40.5) (32.6)
Comparison of PE ratio at
maximum to:
- ----------------------------------------------
Comparative group 13.5 24.3 20.8 (44.4) (35.1)
Maryland thrifts 13.5 27.5 29.2 (50.9) (53.8)
Mid-Atlantic Region thrifts 13.5 22.2 21.3 (39.2) (36.6)
All public thrifts 13.5 21.3 20.6 (36.6) (34.5)
Recent conversions 13.5 16.0 14.1 (15.6) (4.3)
Recent pink sheet conversions 13.5 20.5 18.1 (34.1) (25.4)
Comparison of PE ratio at
supermaximum to:
- ----------------------------------------------
Comparative group 14.9 24.3 20.8 (38.7) (28.4)
Maryland thrifts 14.9 27.5 29.2 (45.8) (49.0)
Mid-Atlantic Region thrifts 14.9 22.2 21.3 (32.9) (30.0)
All public thrifts 14.9 21.3 20.6 (30.0) (27.7)
Recent conversions 14.9 16.0 14.1 (6.9) 5.7
Recent pink sheet conversions 14.9 20.5 18.1 (27.3) (17.7)
Comparison of PB ratio at
midpoint to:
- ----------------------------------------------
Comparative group 69.5 123.9 119.0 (43.9) (41.6)
Maryland thrifts 69.5 178.3 170.6 (61.0) (59.3)
Mid-Atlantic Region thrifts 69.5 176.3 161.7 (60.6) (57.0)
All public thrifts 69.5 173.6 159.7 (60.0) (56.5)
Recent conversions 69.5 76.8 76.6 (9.5) (9.3)
Recent pink sheet conversions 69.5 71.6 72.3 (2.9) (3.9)
Comparison of PB ratio at
maximum to:
- ----------------------------------------------
Comparative group 73.3 123.9 119.0 (40.8) (38.4)
Maryland thrifts 73.3 178.3 170.6 (58.9) (57.0)
Mid-Atlantic Region thrifts 73.3 176.3 161.7 (58.4) (54.7)
All public thrifts 73.3 173.6 159.7 (57.8) (54.1)
Recent conversions 73.3 76.8 76.6 (4.6) (4.3)
Recent pink sheet conversions 73.3 71.6 72.3 2.4 1.4
Comparison of PB ratio at
supermaximum to:
- ----------------------------------------------
Comparative group 77.0 123.9 119.0 (37.9) (35.3)
Maryland thrifts 77.0 178.3 170.6 (56.8) (54.9)
Mid-Atlantic Region thrifts 77.0 176.3 161.7 (56.3) (52.4)
All public thrifts 77.0 173.6 159.7 (55.6) (51.8)
Recent conversions 77.0 76.8 76.6 0.3 0.5
Recent pink sheet conversions 77.0 71.6 72.3 7.5 6.5
Source: SNL & F&C calculations
16
FERGUSON & COMPANY Figure IV.1 - SNL Index Section IV
- ------------------ ----------
% CHANGE SINCE
--------------
SNL PREVIOUS
DATE INDEX DATE 12/31/96 12/31/97
---- ----- ---- -------- --------
12/31/90 96.6
12/31/91 143.9 49.0%
12/31/92 201.1 39.7%
12/31/93 252.5 25.6%
12/31/94 244.7 -3.1%
12/31/95 376.5 53.9%
12/31/96 483.6 28.4%
3/31/97 527.7 9.1% 9.1%
6/30/97 624.6 18.4% 29.2%
9/30/97 737.5 18.1% 52.5%
12/31/97 814.1 10.4% 68.3%
1/30/98 768.3 -5.6% 58.9% -5.6%
2/27/98 818.7 6.6% 69.3% 0.6%
SNL INDEX
[GRAPH APPEARS HERE]
Source: SNL & F&C calculations
17
FERGUSON & COMPANY Figure IV.2 - Interest Rates Section IV
- ------------------ ----------
- ----------------------------------------------------------------- -----------
1 Year 5 Year 10 Year 30 Year 1 to 30
Fed Fds(*) T-bill Treas. Treas. Treas. Yr. Spread
- ----------------------------------------------------------------- -----------
12-Sep-97 5.48 5.59 6.23 6.34 6.64 1.05
- ----------------------------------------------------------------- -----------
26-Sep-97 5.45 5.46 6.00 6.08 6.36
10-Oct-97 5.46 5.44 5.93 6.04 6.34 0.90
- ----------------------------------------------------------------- -----------
24-Oct-97 5.54 5.52 6.02 6.09 6.38
7-Nov-97 5.60 5.43 5.81 5.92 6.20 0.77
- ----------------------------------------------------------------- -----------
21-Nov-97 5.51 5.46 5.79 5.84 6.06
5-Dec-97 5.58 5.54 5.82 5.86 6.04 0.50
- ----------------------------------------------------------------- -----------
19-Dec-97 5.66 5.49 5.74 5.77 5.96
2-Jan-98 5.45 5.52 5.71 5.75 5.93 0.41
- ----------------------------------------------------------------- -----------
16-Jan-98 5.45 5.17 5.32 5.45 5.74
30-Jan-98 5.53 5.27 5.48 5.63 5.89 0.62
- ----------------------------------------------------------------- -----------
13-Feb-98 5.43 5.27 5.47 5.57 5.89
27-Feb-98 5.51 5.42 5.60 5.63 5.94 0.52
- ----------------------------------------------------------------- -----------
Rates September 12, 1997 through February 17, 1998
[CHART APPEARS HERE]
Source: Financial Data, Federal Reserve Bank of St. Louis, MO.
18
EXHIBITS
EXHIBIT I
FERGUSON & COMPANY
- ------------------
Exhibit I - Firm Qualifications
Ferguson & Company (F&C), is a financial, economic, and regulatory
consulting firm providing services to financial institutions. It is located in
Hurst, Texas. Its services to financial institutions include:
. Mergers and acquisition services
. Business plans
. Fairness opinions and conversion appraisals
. Litigation support
. Operational and efficiency consulting
. Human resources evaluation and management
F&C developed several financial institution databases of information
derived from periodic financial reports filed with regulatory authorities by
financial institutions. For example, F&C developed TAFS and BankSource. TAFS
includes thrifts filing TFR's with the OTS and BankSource includes banks and
savings banks filing call reports with the FDIC. Both databases include
information from the periodic reports plus numerous calculations derived from
F&C's analysis. In addition, both databases are interactive, permitting the
user to conduct merger analysis, do peer group comparisons, and a number of
other items. In 1994, F&C sold its electronic publishing segment to Sheshunoff
Information Services Inc., Austin, Texas.
Brief biographical information is presented below on F&C's principals:
WILLIAM C. FERGUSON, MANAGING PARTNER
- -------------------------------------
Mr. Ferguson has approximately 30 years of experience providing various services
to financial institutions. He was a partner in a CPA firm prior to founding F&C
in 1984. Mr. Ferguson is a frequent speaker for financial institution seminars
and he has testified before Congressional Committees several times on his
analysis of the state of the thrift industry. Mr. Ferguson has a B.A. degree
from Austin Peay University and an M.S. degree from the University of Tennessee.
He is a CPA.
CHARLES M. HEBERT, PRINCIPAL
- ----------------------------
Mr. Hebert has over 30 years of experience providing services to and managing
financial institutions. He spent 7 years as a national bank examiner, 14 years
in bank management, 5 years in thrift management, and has spent the last 8 years
on the F&C consulting staff. Mr. Hebert holds a B.S. degree from Louisiana State
University.
ROBIN L. FUSSELL, PRINCIPAL
- ---------------------------
Mr. Fussell has over 25 years of experience providing professional services to
and managing financial institutions. He worked on the audit staff of a "Big
Six" accounting firm for 12 years, served as CFO of a thrift for 3 years, and
has worked in financial institution consulting for the last 14 years. He is a
co-founder of F&C. He holds a B.S. degree from East Carolina University. He is
a CPA.
1
EXHIBIT II
FERGUSON & COMPANY Exhibit II.1 - Selected Mid-Atlantic Publicly Held Thrifts
Deposit
Insurance
Agency
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date
AFED AFSALA Bancorp Inc. Amsterdam NY MA SAIF NASDAQ 10/01/96
ALBC Albion Banc Corp. Albion NY MA SAIF NASDAQ 07/26/93
ALBK ALBANK Financial Corp. Albany NY MA SAIF NASDAQ 04/01/92
ASFC Astoria Financial Corp. Lake Success NY MA SAIF NASDAQ 11/18/93
CATB Catskill Financial Corp. Catskill NY MA BIF NASDAQ 04/18/96
CMSB Commonwealth Bancorp Inc. Norristown PA MA SAIF NASDAQ 06/17/96
CVAL Chester Valley Bancorp Inc. Downingtown PA MA SAIF NASDAQ 03/27/87
DIME Dime Community Bancorp Inc. Brooklyn NY MA BIF NASDAQ 06/26/96
DME Dime Bancorp Inc. New York NY MA BIF NYSE 08/19/86
EQSB Equitable Federal Savings Bank Wheaton MD MA SAIF NASDAQ 09/10/93
ESBK Elmira Savings Bank (The) Elmira NY MA BIF NASDAQ 03/01/85
FBBC First Bell Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 06/29/95
FBER 1st Bergen Bancorp Wood-Ridge NJ MA SAIF NASDAQ 04/01/96
FFIC Flushing Financial Corp. Flushing NY MA BIF NASDAQ 11/21/95
FIBC Financial Bancorp Inc. Long Island City NY MA SAIF NASDAQ 08/17/94
FKFS First Keystone Financial Media PA MA SAIF NASDAQ 01/26/95
FMCO FMS Financial Corp. Burlington NJ MA SAIF NASDAQ 12/14/88
FSBI Fidelity Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 06/24/88
GAF GA Financial Inc. Pittsburgh PA MA SAIF AMSE 03/26/96
GPT GreenPoint Financial Corp. New York NY MA BIF NYSE 01/28/94
HARL Harleysville Savings Bank Harleysville PA MA SAIF NASDAQ 08/04/87
HAVN Haven Bancorp Inc. Woodhaven NY MA SAIF NASDAQ 09/23/93
HRBF Harbor Federal Bancorp Inc. Baltimore MD MA SAIF NASDAQ 08/12/94
IBSF IBS Financial Corp. Cherry Hill NJ MA SAIF NASDAQ 10/13/94
JSB JSB Financial Inc. Lynbrook NY MA BIF NYSE 06/27/90
LARL Laurel Capital Group Inc. Allison Park PA MA SAIF NASDAQ 02/20/87
LFBI Little Falls Bancorp Inc. Little Falls NJ MA SAIF NASDAQ 01/05/96
LFED Leeds Federal Bankshares (MHC) Baltimore MD MA SAIF NASDAQ 05/02/94
LISB Long Island Bancorp Inc. Melville NY MA SAIF NASDAQ 04/18/94
LVSB Lakeview Financial Paterson NJ MA SAIF NASDAQ 12/22/93
MBB MSB Bancorp, Inc. Goshen NY MA BIF AMSE NA
OCFC Ocean Financial Corp. Toms River NJ MA SAIF NASDAQ 07/03/96
PBCI Pamrapo Bancorp Inc. Bayonne NJ MA SAIF NASDAQ 11/14/89
PEEK Peekskill Financial Corp. Peekskill NY MA SAIF NASDAQ 12/29/95
PFNC Progress Financial Corp. Blue Bell PA MA SAIF NASDAQ 07/18/83
PFSB PennFed Financial Services Inc West Orange NJ MA SAIF NASDAQ 07/15/94
PHFC Pittsburgh Home Financial Corp Pittsburgh PA MA SAIF NASDAQ 04/01/96
PRBC Prestige Bancorp Inc. Pleasant Hills PA MA SAIF NASDAQ 06/27/96
PULS Pulse Bancorp South River NJ MA SAIF NASDAQ 09/18/86
PVSA Parkvale Financial Corp. Monroeville PA MA SAIF NASDAQ 07/16/87
PWBC PennFirst Bancorp Inc. Ellwood City PA MA SAIF NASDAQ 06/13/90
PWBK Pennwood Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 07/15/96
QCSB Queens County Bancorp Inc. Flushing NY MA BIF NASDAQ 11/23/93
RARB Raritan Bancorp Inc. Bridgewater NJ MA BIF NASDAQ 03/01/87
RELY Reliance Bancorp Inc. Garden City NY MA SAIF NASDAQ 03/31/94
ROSE TR Financial Corp. Garden City NY MA BIF NASDAQ 06/29/93
SFED SFS Bancorp Inc. Schenectady NY MA SAIF NASDAQ 06/30/95
Source: SNL & F&C calculations 1
FERGUSON & COMPANY Exhibit II.1 - Selected Mid-Atlantic Publicly Held Thrifts
Deposit
Insurance
Agency
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date
SFIN Statewide Financial Corp. Jersey City NJ MA SAIF NASDAQ 10/02/95
SKAN Skaneateles Bancorp Inc. Skaneateles NY MA BIF NASDAQ 06/02/86
SVRN Sovereign Bancorp Inc. Wyomissing PA MA SAIF NASDAQ 08/12/86
THRD TF Financial Corp. Newtown PA MA SAIF NASDAQ 07/13/94
TPNZ Tappan Zee Financial Inc. Tarrytown NY MA SAIF NASDAQ 10/05/95
WHGB WHG Bancshares Corp. Lutherville MD MA SAIF NASDAQ 04/01/96
WSB Washington Savings Bank, FSB Bowie MD MA SAIF AMSE NA
WSFS WSFS Financial Corp. Wilmington DE MA BIF NASDAQ 11/26/86
WVFC WVS Financial Corp. Pittsburgh PA MA SAIF NASDAQ 11/29/93
WYNE Wayne Bancorp Inc. Wayne NJ MA SAIF NASDAQ 06/27/96
YFCB Yonkers Financial Corp. Yonkers NY MA SAIF NASDAQ 04/18/96
YFED York Financial Corp. York PA MA SAIF NASDAQ 02/01/84
Maximum
Minimum
Average
Median
Source: SNL & F&C calculations 2
FERGUSON & COMPANY Exhibit II.1 - Selected Mid-Atlantic Publicly Held Thrifts
Tangible
Current Current Price/ Current Current Current Total Equity/ Equity/
Stock Market LTM Price/ Price/ T Price/ Dividend Assets Assets T Assets
Price Value Core EPS Book V Book V Assets Yield ($000) (%) (%)
Ticker ($) ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ
AFED 19.625 27.05 21.1 120.0 120.0 16.9 1.43 160,408 12.5 12.5
ALBC 10.750 8.06 25.0 133.0 133.0 11.4 0.99 70,810 8.6 8.6
ALBK 48.625 627.60 15.5 174.5 224.7 15.4 1.48 4,083,097 8.8 7.0
ASFC 55.875 1,463.80 19.7 172.4 247.7 13.9 1.43 10,528,393 8.5 6.2
CATB 18.375 85.08 21.6 118.7 118.7 28.9 1.74 294,656 24.3 24.3
CMSB 20.375 331.04 29.1 154.1 195.2 14.6 1.37 2,268,595 9.5 7.6
CVAL 31.750 69.14 23.4 239.8 239.8 21.1 1.39 325,643 8.8 8.8
DIME 25.125 312.51 28.2 167.8 194.2 21.0 1.27 1,488,074 12.5 11.0
DME 30.500 3,548.92 27.2 269.9 329.0 16.2 0.53 21,848,000 6.0 5.0
EQSB 30.500 37.11 17.1 221.5 221.5 11.5 -- 321,687 5.2 5.2
ESBK 28.875 21.42 27.5 143.9 147.8 9.4 2.22 228,268 6.4 6.2
FBBC 18.750 122.07 15.6 167.3 167.3 18.1 2.13 675,684 10.8 10.8
FBER 19.750 56.57 27.1 145.5 145.5 19.9 1.01 284,739 13.7 13.7
FFIC 25.500 200.55 22.6 147.0 153.0 18.4 1.26 1,088,476 12.5 12.1
FIBC 26.000 44.45 15.5 161.5 162.2 14.4 1.92 308,248 8.9 8.9
FKFS 17.500 42.22 16.5 168.6 168.6 11.2 1.14 378,527 6.6 6.6
FMCO 35.000 83.57 15.4 221.5 224.8 14.4 0.80 581,660 6.5 6.4
FSBI 28.875 45.09 17.2 167.8 167.8 11.5 1.25 393,076 6.8 6.8
GAF 19.625 151.46 18.0 130.4 131.6 19.3 2.45 783,948 14.8 14.7
GPT 74.250 3,142.26 20.6 218.4 400.5 24.0 1.72 13,083,518 9.7 5.5
HARL 30.000 50.01 14.9 210.8 210.8 14.4 1.47 347,882 6.8 6.8
HAVN 24.500 215.23 19.6 190.7 191.3 10.9 1.22 1,974,890 5.7 5.7
HRBF 24.000 40.64 25.3 139.4 139.4 17.4 2.00 233,572 12.5 12.5
IBSF 17.750 194.26 32.9 150.4 150.4 26.7 2.25 728,181 17.7 17.7
JSB 53.813 533.82 21.1 149.9 149.9 34.8 2.97 1,531,068 23.2 23.2
LARL 22.000 47.85 17.3 212.2 212.2 22.4 1.58 213,379 10.6 10.6
LFBI 20.000 52.16 33.3 137.7 149.3 16.1 1.00 324,425 11.7 10.9
LFED 21.625 112.06 32.8 231.3 231.3 38.5 2.59 291,408 16.6 16.6
LISB 60.188 1,446.23 33.6 259.5 261.9 23.8 1.00 6,072,524 9.2 9.1
LVSB 25.875 107.75 29.4 194.7 230.2 20.8 0.48 517,974 10.7 9.2
MBB 34.875 99.19 31.1 155.7 292.1 12.8 1.72 773,991 9.8 6.2
OCFC 35.250 282.52 21.5 127.6 127.6 19.4 2.27 1,489,220 15.2 15.2
PBCI 26.750 76.05 16.1 156.7 157.7 20.2 4.19 376,714 12.9 12.8
PEEK 17.000 53.16 25.4 114.3 114.3 28.9 2.12 184,215 25.2 25.2
PFNC 16.875 68.58 24.5 273.1 325.1 13.9 0.71 493,406 5.1 4.3
PFSB 18.625 179.66 16.6 161.7 188.7 12.2 0.75 1,475,509 7.0 6.0
PHFC 17.750 34.96 17.9 141.8 143.5 11.7 1.35 299,669 8.2 8.1
PRBC 19.125 17.50 21.3 112.0 112.0 12.2 1.05 143,263 10.9 10.9
PULS 26.250 81.17 14.8 183.4 183.4 15.0 3.05 539,322 8.2 8.2
PVSA 31.750 162.83 15.7 201.1 202.2 15.9 1.64 1,019,143 7.9 7.9
PWBC 19.125 101.57 18.4 147.6 166.0 12.4 1.88 822,350 8.4 7.5
PWBK 22.000 12.11 25.6 131.3 131.3 25.7 1.64 47,211 18.0 18.0
QCSB 39.750 592.78 28.2 299.8 299.8 39.0 2.01 1,541,049 11.2 11.2
RARB 26.500 62.86 17.4 203.7 206.6 15.4 2.26 408,308 7.6 7.5
RELY 35.500 342.01 19.1 178.2 261.6 15.3 1.80 2,243,100 8.6 6.0
ROSE 32.969 580.19 18.8 226.8 226.8 15.1 2.06 3,843,056 6.3 6.3
SFED 21.500 25.98 23.9 121.3 121.3 14.9 1.49 174,428 12.3 12.3
Source: SNL & F&C calculations 3
FERGUSON & COMPANY Exhibit II.1 - Selected Mid-Atlantic Publicly Held Thrifts
Tangible
Current Current Price/ Current Current Current Total Equity/ Equity/
Stock Market LTM Price/ Price/ T Price/ Dividend Assets Assets T Assets
Price Value Core EPS Book V Book V Assets Yield ($000) (%) (%)
Ticker ($) ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ
SFIN 22.750 102.58 17.9 158.7 158.9 14.9 1.93 703,112 9.4 9.4
SKAN 19.125 27.48 17.6 155.5 159.8 10.7 1.46 256,101 6.9 6.7
SVRN 19.375 1,810.48 21.3 254.6 306.6 12.6 0.41 14,336,283 5.4 4.7
THRD 26.000 82.87 24.5 149.8 179.4 13.9 1.85 597,047 8.4 7.1
TPNZ 18.750 27.71 26.8 128.8 128.8 21.9 1.49 126,470 17.0 17.0
WHGB 18.500 25.70 33.0 129.0 129.0 25.4 1.73 101,331 19.7 19.7
WSB 8.750 38.46 29.2 170.6 170.6 14.5 1.14 264,904 8.5 8.5
WSFS 20.750 258.54 16.3 298.1 299.9 17.1 -- 1,515,217 5.7 5.7
WVFC 38.000 68.71 17.9 214.1 214.1 22.8 3.16 292,022 10.7 10.7
WYNE 24.500 49.34 22.7 148.6 148.6 18.5 0.82 267,285 12.4 12.4
YFCB 18.688 56.45 17.5 125.7 125.7 17.0 1.50 331,802 13.5 13.5
YFED 25.500 225.72 25.0 215.4 215.4 19.1 2.04 1,182,276 8.9 8.9
Maximum 74.250 3,548.92 33.6 299.8 400.5 39.0 4.19 21,848,000 25.2 25.2
Minimum 8.750 8.06 14.8 112.0 112.0 9.4 -- 47,211 5.1 4.3
Average 26.909 318.09 22.2 176.3 191.8 18.1 1.59 1,818,282 10.8 10.3
Median 24.500 82.87 21.3 161.7 170.6 16.1 1.49 493,406 9.4 8.9
Source: SNL & F&C calculations 4
FERGUSON & COMPANY Exhibit II.1 - Selected Mid-Atlantic Publicly Held Thrifts
Core Core Core NPAs/ Price/ Core Core Core
EPS ROAA ROAE Merger Current Assets Core EPS ROAA ROAE
($) (%) (%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM LTM LTM (Y/N) Date MRQ (x) MRQ MRQ MRQ
AFED 0.93 0.79 5.91 N 02/27/98 0.30 20.4 0.24 0.78 6.19
ALBC 0.43 0.49 5.46 N 02/27/98 0.12 22.4 0.12 0.53 6.17
ALBK 3.14 1.18 12.92 N 02/27/98 0.70 11.1 1.10 1.55 17.41
ASFC 2.83 0.77 9.55 N 02/27/98 0.52 20.5 0.68 0.75 8.66
CATB 0.85 1.34 5.19 N 02/27/98 0.35 20.9 0.22 1.31 5.30
CMSB 0.70 0.50 5.17 N 02/27/98 0.42 30.0 0.17 0.45 4.88
CVAL 1.36 0.95 11.04 N 02/27/98 0.55 22.1 0.36 0.96 11.03
DIME 0.89 0.86 5.86 N 02/27/98 0.53 27.3 0.23 0.78 6.08
DME 1.12 0.60 11.05 N 02/27/98 1.06 34.7 0.22 0.49 8.31
EQSB 1.78 0.74 14.65 N 02/27/98 0.38 17.7 0.43 0.70 13.55
ESBK 1.05 0.34 5.40 N 02/27/98 0.63 30.1 0.24 0.30 4.80
FBBC 1.20 1.06 10.03 N 02/27/98 0.09 15.1 0.31 1.08 10.01
FBER 0.73 0.77 4.94 N 02/27/98 0.84 27.4 0.18 0.69 4.94
FFIC 1.13 0.88 6.08 N 02/27/98 0.27 21.3 0.30 0.85 6.37
FIBC 1.68 0.99 10.50 N 02/27/98 1.89 15.5 0.42 0.94 10.31
FKFS 1.06 0.73 10.47 N 02/27/98 1.15 17.5 0.25 0.64 9.65
FMCO 2.27 1.02 15.74 N 02/27/98 1.15 15.4 0.57 0.99 15.00
FSBI 1.68 0.76 11.16 N 02/27/98 0.15 17.6 0.41 0.68 10.02
GAF 1.09 1.08 6.80 N 02/27/98 0.22 17.5 0.28 1.01 6.92
GPT 3.60 1.08 10.64 N 02/27/98 2.90 19.1 0.97 1.11 11.68
HARL 2.01 1.02 15.66 N 02/27/98 -- 15.6 0.48 0.95 14.11
HAVN 1.25 0.63 10.51 N 02/27/98 0.66 18.0 0.34 0.63 10.79
HRBF 0.95 0.72 5.55 N 02/27/98 0.53 28.6 0.21 0.64 4.92
IBSF 0.54 0.79 4.36 N 02/27/98 0.11 31.7 0.14 0.84 4.78
JSB 2.55 1.72 7.67 N 02/27/98 1.02 21.0 0.64 1.74 7.59
LARL 1.27 1.40 13.48 N 02/27/98 0.42 17.7 0.31 1.37 12.98
LFBI 0.60 0.51 3.93 N 02/27/98 0.90 27.8 0.18 0.57 4.75
LFED 0.66 1.21 7.36 N 02/27/98 0.03 33.8 0.16 1.14 6.83
LISB 1.79 0.71 7.82 N 02/27/98 0.89 33.4 0.45 0.69 7.61
LVSB 0.88 0.89 8.44 N 02/27/98 1.14 24.9 0.26 1.00 8.70
MBB 1.12 0.54 6.17 N 02/27/98 NA 28.1 0.31 0.60 6.81
OCFC 1.64 1.00 5.71 N 02/27/98 0.52 19.6 0.45 0.97 6.37
PBCI 1.66 1.31 9.87 N 02/27/98 1.70 17.6 0.38 1.15 8.88
PEEK 0.67 1.09 4.23 N 02/27/98 0.77 26.6 0.16 1.01 3.92
PFNC 0.69 0.70 13.37 N 02/27/98 0.50 26.4 0.16 0.64 12.09
PFSB 1.12 0.81 10.98 N 02/27/98 0.55 16.6 0.28 0.76 10.60
PHFC 0.99 0.71 6.51 N 02/27/98 1.68 17.1 0.26 0.67 6.86
PRBC 0.90 0.57 5.03 N 02/27/98 0.43 29.9 0.16 0.39 3.35
PULS 1.77 1.08 13.56 N 02/27/98 0.85 15.6 0.42 1.02 12.69
PVSA 2.02 1.07 14.71 N 02/27/98 0.36 15.3 0.52 1.08 14.56
PWBC 1.04 0.66 8.61 N 02/27/98 0.68 18.4 0.26 0.69 8.33
PWBK 0.86 0.98 5.28 N 02/27/98 0.74 34.4 0.16 0.70 3.85
QCSB 1.41 1.55 11.55 N 02/27/98 0.53 26.2 0.38 1.46 12.78
RARB 1.52 1.01 12.93 N 02/27/98 0.23 17.0 0.39 0.97 12.93
RELY 1.86 0.85 10.31 N 02/27/98 0.54 18.1 0.49 0.87 10.30
ROSE 1.75 0.87 14.16 N 02/27/98 0.48 17.5 0.47 0.89 14.35
SFED 0.90 0.61 4.87 N 02/27/98 0.82 23.4 0.23 0.56 4.63
Source: SNL & F&C calculations 5
FERGUSON & COMPANY Exhibit II.1 - Selected Mid-Atlantic Publicly Held Thrifts
Core Core Core NPAs/ Price/ Core Core Core
EPS ROAA ROAE Merger Current Assets Core EPS ROAA ROAE
($) (%) (%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM LTM LTM (Y/N) Date MRQ (x) MRQ MRQ MRQ
SFIN 1.27 0.81 8.46 N 02/27/98 0.33 17.2 0.33 0.81 8.62
SKAN 1.09 0.66 9.47 N 02/27/98 1.89 18.4 0.26 0.61 8.63
SVRN 0.91 0.69 12.55 N 02/27/98 0.63 17.3 0.28 0.80 15.13
THRD 1.06 0.66 6.28 N 02/27/98 0.29 24.1 0.27 0.61 7.45
TPNZ 0.70 0.80 4.65 N 02/27/98 1.19 27.6 0.17 0.74 4.35
WHGB 0.56 0.77 3.66 N 02/27/98 0.95 38.5 0.12 0.61 3.08
WSB 0.30 0.52 6.25 N 02/27/98 NA 36.5 0.06 0.39 4.59
WSFS 1.27 1.10 20.00 N 02/27/98 1.23 17.3 0.30 1.00 17.34
WVFC 2.12 1.31 11.03 N 02/27/98 0.20 16.4 0.58 1.44 11.95
WYNE 1.08 0.86 6.01 N 02/27/98 0.89 24.5 0.25 0.76 5.57
YFCB 1.07 1.04 7.00 N 02/27/98 0.49 18.0 0.26 0.92 6.63
YFED 1.02 0.80 9.36 N 02/27/98 1.01 27.7 0.23 0.74 8.44
Maximum 3.60 1.72 20.00 2.90 38.5 1.10 1.740 17.410
Minimum 0.30 0.34 3.66 -- 11.1 0.06 0.300 3.080
Average 1.29 0.88 8.91 0.71 22.5 0.33 0.848 8.736
Median 1.09 0.81 8.46 0.55 20.5 0.28 0.780 8.330
Source: SNL & F&C calculations 6
FERGUSON & COMPANY Exhibit II.2 - Selected Maryland Publicly Held Thrifts
Deposit
Insurance
Agency
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date
EQSB Equitable Federal Savings Bank Wheaton MD MA SAIF NASDAQ 09/10/93
HRBF Harbor Federal Bancorp Inc. Baltimore MD MA SAIF NASDAQ 08/12/94
LFED Leeds Federal Bankshares (MHC) Baltimore MD MA SAIF NASDAQ 05/02/94
WHGB WHG Bancshares Corp. Lutherville MD MA SAIF NASDAQ 04/01/96
WSB Washington Savings Bank, FSB Bowie MD MA SAIF AMSE NA
Maximum
Minimum
Average
Median
Source: SNL & F&C calculations 7
FERGUSON & COMPANY Exhibit II.2 - Selected Maryland Publicly Held Thrifts
Tangible
Current Current Price/ Current Current Current Total Equity/ Equity/ Core
Stock Market LTM Price/ Price/ T Price/ Dividend Assets Assets T Assets EPS
Price Value Core EPS Book V Book V Assets Yield ($000) (%) (%) ($)
($) ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM
EQSB 30.500 37.11 17.1 221.5 221.5 11.5 -- 321,687 5.2 5.2 1.78
HRBF 24.000 40.64 25.3 139.4 139.4 17.4 2.00 233,572 12.5 12.5 0.95
LFED 21.625 112.06 32.8 231.3 231.3 38.5 2.59 291,408 16.6 16.6 0.66
WHGB 18.500 25.70 33.0 129.0 129.0 25.4 1.73 101,331 19.7 19.7 0.56
WSB 8.750 38.46 29.2 170.6 170.6 14.5 1.14 264,904 8.5 8.5 0.30
Maximum 30.500 112.06 33.0 231.3 231.3 38.5 2.59 321,687 19.7 19.7 1.78
Minimum 8.750 25.70 17.1 129.0 129.0 11.5 -- 101,331 5.2 5.2 0.30
Average 20.675 50.79 27.5 178.3 178.3 21.5 1.49 242,580 12.5 12.5 0.85
Median 21.625 38.46 29.2 170.6 170.6 17.4 1.73 264,904 12.5 12.5 0.66
Source: SNL & F&C calculations 8
FERGUSON & COMPANY
- ------------------
Exhibit II.2 - Selected Maryland Publicly Held Thrifts
Core Core NPAs/ Price/ Core Core Core
ROAA ROAE Merger Current Assets Core EPS ROAA ROAE
(%) (%) Target? Pricing (%) EPS ($) (%) (%)
LTM LTM (Y/N) Date MRQ (x) MRQ MRQ MRQ
EQSB 0.74 14.65 N 02/27/98 0.38 17.7 0.43 0.70 13.55
HRBF 0.72 5.55 N 02/27/98 0.53 28.6 0.21 0.64 4.92
LFED 1.21 7.36 N 02/27/98 0.03 33.8 0.16 1.14 6.83
WHGB 0.77 3.66 N 02/27/98 0.95 38.5 0.12 0.61 3.08
WSB 0.52 6.25 N 02/27/98 NA 36.5 0.06 0.39 4.59
Maximum 1.21 14.65 0.95 38.5 0.43 1.140 13.550
Minimum 0.52 3.66 0.03 17.7 0.06 0.390 3.080
Average 0.79 7.49 0.47 31.0 0.20 0.696 6.594
Median 0.74 6.25 0.46 33.8 0.16 0.640 4.920
Source: SNL & F&C calculations 9
FERGUSON & COMPANY Exhibit 11.3 - Comparatives General Characteristics
- ------------------
Total Current Current
Number Assets Stock Market
of ($000) Price Value
Ticker Short Name City State Offices MRQ IPO Date ($) ($M)
CKFB CKF Bancorp Inc. Danville KY 1 62,865 01/04/95 19.500 16.91
HBBI Home Building Bancorp Washington IN 2 42,430 02/08/95 22.625 7.05
HCFC Home City Financial Corp. Springfield OH 1 70,110 12/30/96 18.625 16.85
LONF London Financial Corp. London OH 1 37,916 04/01/96 14.875 7.59
MIVI Mississippi View Holding Co. Little Falls MN 1 68,619 03/24/95 18.375 13.60
NSLB NS&L Bancorp Inc. Neosho MO 2 59,817 06/08/95 17.375 12.26
PWBK Pennwood Bancorp Inc. Pittsburgh PA 3 47,211 07/15/96 22.000 12.11
SOBI Sobieski Bancorp Inc. South Bend IN 3 87,553 03/31/95 20.500 16.07
SSB Scotland Bancorp Inc. Laurinburg NC 2 61,473 04/01/96 10.125 19.38
USAB USA Bancshares, Inc. Philadelphia PA 1 64,269 NA 10.500 7.69
Maximum 3 87,553 22.625 19.38
Minimum 1 37,916 10.125 7.05
Average 2 60,226 17.450 12.95
Median 2 62,169 18.500 12.93
Source: SNL & F&C calculations
10
FERGUSON & COMPANY Exhibit II.4 - Comparative Balance Sheet Characteristics
Total Mortgage- Investment & Loan
Total Cash and Backed Net Foreclosed Servicing Total Other Total
Assets Investments Securities Loans Real Estate Rights Intangibles Assets Deposits
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Short Name MRQ MRQ MRQ MRQ MRQ MRQ MRQ MRQ MRQ
CKF Bancorp Inc. 62,865 5,977 373 55,895 -- -- -- -993 43,253
Home Building Bancorp 42,430 12,309 4,466 28,842 -- -- -- -1,279 32,082
Home City Financial Corp. 70,110 8,173 712 59,811 -- -- -- -2,126 51,632
London Financial Corp. 37,916 8,418 3,492 28,931 -- -- -- -567 30,673
Mississippi View Holding Co. 68,619 22,327 4,318 44,493 -- -- -- -1,799 54,867
NS&L Bancorp Inc. 59,817 24,111 4,473 33,847 -- -- 83 1,744 43,892
Pennwood Bancorp Inc. 47,211 15,131 1,867 30,305 25 -- -- -1,750 36,267
Sobieski Bancorp Inc. 87,553 16,020 12,512 68,879 152 -- -- -2,502 57,611
Scotland Bancorp Inc. 61,473 15,706 383 44,492 -- -- -- -1,275 45,636
USABancshares, Inc. 64,269 28,056 7,308 33,824 -- -- 82 2,307 46,195
Maximum 87,553 28,056 12,512 68,879 152 -- 83 2,502 57,611
Minimum 37,916 5,977 373 28,842 -- -- -- -567 30,673
Average 60,226 15,623 3,990 42,932 18 -- 17 1,634 44,211
Median 62,169 15,419 3,905 39,170 -- -- -- -1,747 44,764
Source: SNL & F&C characteristics 11
FERGUSON & COMPANY Exhibit II.4 - Comparative Balance Sheet Characteristics
Regulatory Regulatory
Total Subordinated Other Total Preferred Common Total Tangible Core
Borrowings Debt Liabilities Liabilities Equity Equity Equity Capital Capital
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Short Name MRQ MRQ MRQ MRQ MRQ MRQ MRQ MRQ MRQ
CKF Bancorp Inc. 5,214 -- 635 49,102 -- 13,763 13,763 12,245 12,245
Home Building Bancorp 4,000 -- 381 36,463 -- 5,967 5,967 4,542 4,542
Home City Financial Corp. 4,311 -- 417 56,360 -- 13,750 13,750 10,544 10,544
London Financial Corp. 1,700 -- 325 32,698 -- 5,218 5,218 6,000 6,000
Mississippi View Holding Co. -- -- 1,276 56,143 -- 12,476 12,476 10,876 10,876
NS&L Bancorp Inc. 3,000 -- 1,101 47,993 -- 11,824 11,824 8,793 8,793
Pennwood Bancorp Inc. 1,448 -- 1,006 38,721 -- 8,490 8,490 NA 8,726
Sobieski Bancorp Inc. 16,850 -- 491 74,952 -- 12,601 12,601 9,166 9,166
Scotland Bancorp Inc. -- -- 1,042 46,678 -- 14,795 14,795 12,762 12,762
USABancshares, Inc. 12,205 -- 449 58,849 -- 5,420 5,420 NA 4,845
Maximum 16,850 -- 1,276 74,952 -- 14,795 14,795 12,762 12,762
Minimum -- -- 325 32,698 -- 5,218 5,218 4,542 4,542
Average 4,873 -- 712 49,796 -- 10,430 10,430 9,366 8,850
Median 3,500 -- 563 48,548 -- 12,150 12,150 9,855 8,980
Source: SNL & F&C characteristics 12
FERGUSON & COMPANY Exhibit II.4 - Comparative Balance Sheet Characteristics
Regulatory Loan Loss Publicly
Total Tangible Core Risk-Based NPAs/ Reserves/ Reserves/ Reported
Capital Capital/ Capital/ Capital/ Assets Assets NPLs Book Value
($000) Tangible Adj Tangible Risk-Weightd (%) (%) (%) ($)
Short Name MRQ Assets (%) Assets (%) Assets (%) MRQ MRQ MRQ MRQ
CKF Bancorp Inc. 12,370 20.9 20.9 36.8 0.10 0.20 189.39 17.14
Home Building Bancorp 4,625 10.1 10.1 21.0 0.67 0.20 29.02 20.61
Home City Financial Corp. 10,987 8.9 8.9 17.3 0.82 0.63 77.27 15.20
London Financial Corp. 6,200 15.6 15.6 30.2 0.20 0.48 238.16 10.23
Mississippi View Holding Co. 11,309 14.9 14.9 31.7 0.43 1.26 290.24 16.85
NS&L Bancorp Inc. 8,837 13.8 13.8 38.5 0.03 0.07 220.00 16.61
Pennwood Bancorp Inc. 8,970 NA NA NA 0.74 0.52 74.85 16.76
Sobieski Bancorp Inc. 9,360 11.9 11.9 28.5 0.26 0.23 259.74 17.75
Scotland Bancorp Inc. 13,017 NA NA NA -- 0.41 NM 7.73
USABancshares, Inc. 5,102 NA NA NA 0.57 0.40 70.22 6.73
Maximum 13,017 20.9 20.9 38.5 0.82 1.26 290.24 20.61
Minimum 4,625 8.9 8.9 17.3 -- 0.07 29.02 6.73
Average 9,078 13.7 13.7 29.2 0.38 0.44 160.99 14.56
Median 9,165 13.8 13.8 30.2 0.35 0.41 189.39 16.69
Source: SNL & F&C characteristics 13
FERGUSON & COMPANY Exhibit II.4 - Comparative Balance Sheet Characteristics
Tangible Earn Assets/ Full-Time Loans Cash and
Publicly Rep Int Bearing Equivalent Serviced Investments/ MBS/
Book Value Liabilities Employees For Others Assets Assets
($) (%) (Actual) ($000) (%) (%)
Short Name MRQ MRQ MRQ MRQ MRQ MRQ
CKF Bancorp Inc. 17.14 129.52 9 -- 8.91 0.59
Home Building Bancorp 20.61 113.96 13 -- 18.48 10.53
Home City Financial Corp. 15.20 122.84 15 2,529 10.64 1.02
London Financial Corp. 10.23 120.35 10 -- 12.99 9.21
Mississippi View Holding Co. 16.85 122.33 21 NA 26.24 6.29
NS&L Bancorp Inc. 16.49 123.63 24 -- 32.83 7.48
Pennwood Bancorp Inc. 16.76 118.60 11 147 28.10 3.95
Sobieski Bancorp Inc. 17.75 112.35 24 -- 4.01 14.29
Scotland Bancorp Inc. 7.73 131.42 13 -- 24.93 0.62
USABancshares, Inc. 6.63 108.17 11 -- 32.28 11.37
Maximum 20.61 131.42 24 2,529 32.83 14.29
Minimum 6.63 108.17 9 -- 4.01 0.59
Average 14.54 120.32 15 297 19.94 6.54
Median 16.63 121.34 13 -- 21.71 6.89
Source: SNL & F&C characteristics 14
FERGUSON & COMPANY Exhibit II 5 - Comparatives Operations Characteristics
- ------------------
Net Income ROAA ROAE Loan Total
Average Before Before Core Before Core Loss Noninterest
Assets Net Income Extra Items ROAA Extra ROAA ROAE Extra ROAE Provision Income
($000) ($000) ($000) (%) (%) (%) (%) (%) (%) ($000) ($000)
Short Name LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM
CKF Bancorp Inc. 61,434 1,117 1,117 1.82 1.82 1.37 7.74 7.74 5.84 18 62
Home Building Bancorp 43,889 329 329 0.75 0.75 0.72 5.70 5.70 5.48 7 108
Home City Financial Corp. NA NA NA NA NA NA NA NA NA NA NA
London Financial Corp. 38,001 411 411 1.08 1.08 1.00 5.62 5.62 5.21 2 68
Mississippi View Holding Co. 68,792 744 744 1.08 1.08 1.06 6.37 6.37 6.27 - 175
NS&L Bancorp Inc. 58,720 456 456 0.78 0.78 0.74 3.83 3.83 3.63 2 198
Pennwood Bancorp Inc. 47,881 458 458 0.96 0.96 0.98 5.14 5.14 5.28 48 120
Sobieski Bancorp Inc. 82,090 497 497 0.61 0.61 0.61 3.95 3.95 3.95 - 137
Scotland Bancorp Inc. 66,893 1,113 1,113 1.66 1.66 1.65 5.21 5.21 5.17 24 74
USABancshares, Inc. 43,387 231 231 0.53 0.53 0.47 4.57 4.57 4.08 75 249
Maximum 82,090 1,117 1,117 1.82 1.82 1.65 7.74 7.74 6.27 75 249
Minimum 38,001 231 231 0.53 0.53 0.47 3.83 3.83 3.63 - 62
Average 56,787 595 595 1.03 1.03 0.96 5.35 5.35 4.99 20 132
Median 58,720 458 458 0.96 0.96 0.98 5.21 5.21 5.21 7 120
15
FERGUSON & COMPANY Exhibit II 5 - Comparatives Operations Characteristics
- ------------------
Total Net Loan Common Dividend Interest Interest Net Interest Gain on
Noninterest Chargeoffs/ LTM EPS Dividends Payout Income/ Expense/ Income/ Sale/
Expense Avg Loans After Extra Per Share Ratio Avg Assets Avg Assets Avg Assets Avg Assets
($000) (%) ($) ($) (%) (%) (%) (%) (%)
Short Name LTM LTM LTM LTM LTM LTM LTM LTM LTM
CKF Bancorp Inc. 1,025 0.07 1.29 1.47 113.95 7.46 3.80 3.66 0.69
Home Building Bancorp 1,096 0.01 1.14 0.30 26.32 7.56 4.14 3.43 0.05
Home City Financial Corp. NA NA NA NA NA NA NA NA NA
London Financial Corp. 891 0.03 0.86 5.24 609.30 7.66 3.97 3.69 0.12
Mississippi View Holding Co. 1,618 0.03 0.95 0.16 16.84 7.48 3.62 3.85 0.03
NS&L Bancorp Inc. 1,372 - 0.68 0.50 73.53 6.65 3.52 3.14 0.06
Pennwood Bancorp Inc. 1,367 0.41 0.84 0.32 38.10 7.91 3.70 4.20 -
Sobieski Bancorp Inc. 1,966 - 0.66 0.30 45.45 7.27 4.02 3.25 -
Scotland Bancorp Inc. 1,509 - 0.65 6.28 965.38 7.56 3.06 4.50 0.36
USABancshares, Inc. 1,735 0.01 0.29 - - 9.17 4.50 4.67 0.09
Maximum 1,966 0.41 1.29 6.28 965.38 9.17 4.50 4.67 0.69
Minimum 891 - 0.29 - - 6.65 3.06 3.14 -
Average 1,398 0.06 0.82 1.62 209.87 7.64 3.81 3.82 0.16
Median 1,372 0.01 0.84 0.32 45.45 7.56 3.80 3.69 0.06
16
FERGUSON & COMPANY Exhibit II 5 - Comparatives Operations Characteristics
- ------------------
Real Noninterest G&A Noninterest Net Oper Total Amortization Extra and
Estate Income/ Expense/ Expense/ Expenses/ Nonrecurring of Tax After Tax
Expense Avg Assets Avg Assets Avg Assets Avg Assets Expense Intangibles Provision Items
($000) (%) (%) (%) (%) ($000) ($000) ($000) ($000)
Short Name LTM LTM LTM LTM LTM LTM LTM LTM LTM
CKF Bancorp Inc. 42 0.10 1.60 1.67 1.50 - - 575 -
Home Building Bancorp (3) 0.25 2.50 2.50 2.26 - - 200 -
Home City Financial Corp. NA NA 2.19 NA NA NA NA NA NA
London Financial Corp. - 0.18 2.34 2.34 2.17 - - 212 -
Mississippi View
Holding Co. (12) 0.25 2.37 2.35 2.12 - - 482 -
NS&L Bancorp Inc. - 0.34 2.34 2.34 2.00 - - 246 -
Pennwood Bancorp Inc. 43 0.25 2.77 2.85 2.51 65 - 240 -
Sobieski Bancorp Inc. (2) 0.17 2.40 2.39 2.23 - - 345 -
Scotland Bancorp Inc. - 0.11 2.26 2.26 2.15 230 - 449 -
USABancshares, Inc. - 0.57 3.87 4.00 3.30 - 56 272 -
Maximum 43 0.57 3.87 4.00 3.30 230 56 575 -
Minimum (12) 0.10 1.60 1.67 1.50 - - 200 -
Average 8 0.25 2.46 2.52 2.25 33 6 336 -
Median - 0.25 2.36 2.35 2.17 - - 272 -
17
FERGUSON & COMPANY Exhibit II 5 - Comparatives Operations Characteristics
- ------------------
Yield on Cost of Interest Loan Loss
Efficiency Preferred Int Earning Int Bearing Effective Yield Provision/
Ratio Dividends Assets Liabilities Tax Rate Spread Avg Assets
(%) ($000) (%) (%) (%) (%) (%)
Short Name LTM LTM LTM LTM LTM LTM LTM
CKF Bancorp Inc. 42.50 - 7.64 5.09 33.98 2.55 0.03
Home Building Bancorp 68.18 - 7.82 4.72 37.81 3.10 0.02
Home City Financial Corp. NA NA NA NA NA NA NA
London Financial Corp. 60.61 - 7.74 4.97 34.03 2.77 0.01
Mississippi View Holding Co. 57.68 - 7.58 4.52 39.31 3.06 -
NS&L Bancorp Inc. 67.29 - 6.85 4.53 35.04 2.32 0.00
Pennwood Bancorp Inc. 62.07 - 8.34 4.66 34.38 3.68 0.10
Sobieski Bancorp Inc. 70.09 - 7.55 4.78 40.97 2.77 -
Scotland Bancorp Inc. 48.91 - 7.69 4.61 28.75 3.08 0.04
USABancshares, Inc. 73.80 - 9.42 5.21 54.08 4.21 0.17
Maximum 73.80 - 9.42 5.21 54.08 4.21 0.17
Minimum 42.50 - 6.85 4.52 28.75 2.32 -
Average 61.24 - 7.85 4.79 37.59 3.06 0.04
Median 62.07 - 7.69 4.72 35.04 3.06 0.02
18
FERGUSON & COMPANY
- ------------------
Exhibit II.6 - Comparative Pricing Characteristics
Current Current Price/ Current Current Current Total
Stock Market LTM Price/ Price/ T Price/ Dividend Assets
Abbreviated Price Value Core EPS Book V Book V Assets Yield ($000)
Ticker Name City State ($) ($M) (x) (%) (%) (%) (%) MRQ
CKFB CKFBancorp-KY Danville KY 19.500 16.91 20.1 113.8 113.8 26.9 2.56 62,865
HBBI HomeBldngBncp-IN Washington IN 22.625 7.05 20.8 109.8 109.8 16.6 1.33 42,430
HCFC HomeCityFinl-OH Springfield OH 18.625 16.85 NA 122.5 122.5 24.0 1.93 70,110
LONF LondonFinlCorp-OH London OH 14.875 7.59 18.6 145.4 145.4 20.0 1.61 37,916
MIVI MissViewHldgCo-MN Little Falls MN 18.375 13.60 19.6 109.1 109.1 19.8 1.74 68,619
NSLB NS&LBancorp-MO Neosho MO 17.375 12.26 27.2 104.6 105.4 20.7 2.88 59,817
PWBK PennwoodBancorp-PA Pittsburgh PA 22.000 12.11 25.6 131.3 131.3 25.7 1.64 47,211
SOBI SobieskiBancorp-IN South Bend IN 20.500 16.07 31.1 115.5 115.5 17.9 1.56 87,553
SSB ScotlandBancorp-NC Laurinburg NC 10.125 19.38 15.6 131.0 131.0 31.5 1.98 61,473
USAB USABancshares-PA Philadelphia PA 10.500 7.69 40.4 156.0 158.4 12.0 -- 64,269
Maximum 22.625 19.38 40.4 156.0 158.4 31.5 2.88 87,553
Minimum 10.125 7.05 15.6 104.6 105.4 12.0 -- 37,916
Average 17.450 12.95 24.3 123.9 124.2 21.5 1.72 60,226
Median 18.500 12.93 20.8 119.0 119.0 20.3 1.69 62,169
Source: SNL & F&C calculations 19
FERGUSON & COMPANY Exhibit II.6 - Comparative Pricing Characteristics
Tangible ROACE
Equity/ Equity/ Core Core Core Before NPAs/ Price/ Core Core Core
Assets T Assets EPS ROAA ROAE Extra Merger Current Assets Core EPS ROAA ROAE
(%) (%) ($) (%) (%) (%) Target? Pricing (%) EPS ($) (%) (%)
Ticker MRQ MRQ LTM LTM LTM LTM (Y/N) Date MRQ (x) MRQ MRQ MRQ
CKFB 21.9 21.9 0.97 1.37 5.84 7.74 N 02/27/98 0.10 18.8 0.26 1.39 6.13
HBBI 14.1 14.1 1.09 0.72 5.48 5.70 N 02/27/98 0.67 25.7 0.22 0.61 4.32
HCFC 19.6 19.6 NA NA NA NA N 02/27/98 0.82 16.1 0.29 1.39 6.94
LONF 13.8 13.8 0.80 1.00 5.21 5.62 N 02/27/98 0.20 15.5 0.24 1.23 7.30
MIVI 18.2 18.2 0.94 1.06 6.27 6.37 N 02/27/98 0.43 19.1 0.24 1.06 6.30
NSLB 19.8 19.7 0.64 0.74 3.63 3.83 N 02/27/98 0.03 31.0 0.14 0.46 2.31
PWBK 18.0 18.0 0.86 0.98 5.28 5.14 N 02/27/98 0.74 34.4 0.16 0.70 3.85
SOBI 14.4 14.4 0.66 0.61 3.95 3.95 N 02/27/98 0.26 30.2 0.17 0.59 4.06
SSB 24.1 24.1 0.65 1.65 5.17 5.21 N 02/27/98 - 28.1 0.09 1.00 4.31
USAB 8.4 8.3 0.26 0.47 4.08 4.57 N 02/27/98 0.57 17.5 0.15 0.87 9.19
Maximum 24.1 24.1 1.09 1.65 6.27 7.74 0.82 34.4 0.29 1.39 9.19
Minimum 8.4 8.3 0.26 0.47 3.63 3.83 - 15.5 0.09 0.46 2.31
Average 17.2 17.2 0.76 0.96 4.99 5.35 0.38 23.6 0.20 0.93 5.47
Median 18.1 18.1 0.80 0.98 5.21 5.21 0.35 22.4 0.20 0.94 5.23
Source: SNL & F&C calculations 20
FERGUSON & COMPANY Exhibit II.7 - Comparative Risk Characteristics
NPAs + Loans Net Loan
NPAs/ 90+ Pst Due/ NPAs/ Reserves/ Reserves/ Chargeoffs/
Assets Assets Equity Loans NPAs Avg Loans
(%) (%) (%) (%) (%) (%)
Short Name MRQ MRQ MRQ MRQ MRQ MRQ
CKF Bancorp Inc. 0.10 0.47 0.48 0.22 189.39 --
Home Building Bancorp 0.67 0.67 4.79 0.29 29.02 --
Home City Financial Corp. 0.82 0.82 4.16 0.73 77.27 0.08
London Financial Corp. 0.20 0.20 1.46 0.62 238.16 0.12
Mississippi View Holding Co. 0.43 0.56 2.38 1.90 290.24 (0.02)
NS&L Bancorp Inc. 0.03 0.14 0.17 0.13 220.00 NA
Pennwood Bancorp Inc. 0.74 1.49 4.13 0.80 69.52 0.93
Sobieski Bancorp Inc. 0.26 0.26 1.82 0.29 87.34 --
Scotland Bancorp Inc. -- -- -- 0.57 NM --
USABancshares, Inc. 0.57 0.57 6.75 0.75 70.22 --
Maximum 0.82 1.49 6.75 1.90 290.24 0.93
Minimum -- -- -- 0.13 29.02 (0.02)
Average 0.38 0.52 2.61 0.63 141.24 0.12
Median 0.35 0.52 2.10 0.60 87.34 --
Source: SNL & F&C calculations 21
FERGUSON & COMPANY Exhibit II.7 - Comparative Risk Characteristics
Intangible One Year Earn Assets/
Loans/ Assets/ Cum Gap/ Net Int Bearing
Assets Equity Assets Loans Liabilities
(%) (%) (%) ($000) (%)
Short Name MRQ MRQ MRY MRQ MRQ
CKF Bancorp Inc. 89.11 -- NA 55,895 129.52
Home Building Bancorp 68.17 -- NA 28,842 113.96
Home City Financial Corp. 85.94 -- NA 59,811 122.84
London Financial Corp. 76.78 -- NA 28,931 120.35
Mississippi View Holding Co. 66.10 -- NA 44,493 122.33
NS&L Bancorp Inc. 56.71 0.70 NA 33,847 123.63
Pennwood Bancorp Inc. 64.71 -- (5.10) 30,305 118.60
Sobieski Bancorp Inc. 78.90 -- NA 68,879 112.35
Scotland Bancorp Inc. 72.79 -- NA 44,492 131.42
USABancshares, Inc. 53.03 1.51 (13.85) 33,824 108.17
Maximum 89.11 1.51 (5.10) 68,879 131.42
Minimum 53.03 -- (13.85) 28,842 108.17
Average 71.22 0.22 (9.48) 42,932 120.32
Median 70.48 -- (9.48) 39,170 121.34
Source: SNL & F&C calculations 22
EXHIBIT III
FERGUSON & COMPANY Exhibit III
NORTHFIELD FEDERAL SAVINGS
BALTIMORE, MD
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
($000's)
BALANCE SHEET:
Total Assets 30,349 32,102 32,228 35,124
% Change in Assets 2.90 5.78 0.39 8.99
Total Loans 21,234 21,841 23,968 29,973
Deposits 27,639 29,162 29,103 30,098
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 2,368 2,623 2,745 2,992
Tangible Capital 2,368 2,633 2,768 3,014
Core Capital 2,368 2,633 2,768 3,014
Risk-Based Capital 2,448 2,723 2,868 3,122
Equity Capital/Total Assets 7.80 8.17 8.52 8.52
Core Capital/Risk Based Assets 16.04 17.26 18.06 16.95
Core Capital/Adj Tang Assets 7.80 8.20 8.58 8.58
Tangible Cap/Tangible Assets 7.80 8.20 8.58 8.58
Risk-Based Cap/Risk-Wt Assets 16.58 17.85 18.71 17.56
PROFITABILITY:
Net Income(Loss) 286 278 170 245
Ret on Avg Assets Bef Ext Item 0.97 0.90 0.53 0.98
Return on Average Equity 12.87 11.30 6.32 11.43
Net Interest Income/Avg Assets 3.58 3.41 3.30 3.33
Noninterest Income/Avg Assets 0.24 0.17 0.16 0.20
Noninterest Expense/Avg Assets 2.29 2.16 2.68 1.88
Yield/Cost Spread 3.43 3.18 3.03 3.03
LIQUIDITY:
Int Earn Assets/Int Bear Liab 107.65 108.00 109.07 108.55
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.89 0.52 0.47 0.86
Nonaccrual Loans/Gross Loans -- -- -- --
Nonaccrual Lns/Ln Loss Reserve -- -- -- --
Repos Assets/Tot Assets -- -- -- --
Net Chrg-Off/Av Adj Lns -- -- -- --
Nonmtg 1-4 Constr&Conv Lns/TA 8.56 8.51 8.11 7.08
Source: TAFS, published by Sheshunoff 1
FERGUSON & COMPANY Exhibit III
NORTHFIELD FEDERAL SAVINGS
BALTIMORE, MD
SELECTED PEER GROUP RATIOS & RANKINGS
1994 1995 1996 YTD 9/97
Peer Group Category 2 2 2 2
CAPITAL:
Equity Capital/Total Assets 7.80 8.17 8.52 8.52
Peer Group Percentile 32 30 37 32
Core Cap/Adj Tangible Assets 7.80 8.20 8.58 8.58
Peer Group Percentile 34 32 40 35
Tangible Cap/Tangible Assets 7.80 8.20 8.58 8.58
Peer Group Percentile 34 32 40 36
Risk-Based Cap/Risk-Wt Assets 16.58 17.85 18.71 17.56
Peer Group Percentile 34 43 44 38
ASSET QUALITY:
Risk Assets/Total Assets 8.66 8.51 8.11 7.08
Peer Group Percentile 32 30 33 42
Risk Weighted Assts/Tot Assts 48.66 47.53 47.56 50.62
Peer Group Percentile 47 55 57 49
Nonaccrual Loans/Gross Loans -- -- -- --
Peer Group Percentile 100 100 100 100
Repos Assets/Tot Assets -- -- -- --
Peer Group Percentile 36 100 100 100
90+ Day Del Loans/Gross Loans 0.71 0.50 0.45 0.87
Peer Group Percentile 23 33 34 22
90Day P Due+NonAccr-(1-4)/LLR 38.75 125.56 114.00 --
Peer Group Percentile 25 10 12 100
LIQUIDITY:
Avg Reg Liquidity Ratio 11.95 17.24 12.69 5.48
Peer Group Percentile 34 51 45 5
PROFITABILITY:
Ret on Avg Assets Bef Ext Item 0.97 0.90 0.53 0.98
Peer Group Percentile 66 75 70 80
Return on Equity Capital 12.29 10.75 6.19 10.92
Peer Group Percentile 85 88 84 90
Int Earn Assets/Int Bear Liab 107.65 108.00 109.07 108.55
Peer Group Percentile 59 61 64 61
Yield on Earning Assts 7.40 7.89 7.76 7.77
Peer Group Percentile 64 61 53 52
Cost of Funds 3.97 4.71 4.74 4.74
Peer Group Percentile 39 50 50 55
Yield/Cost Spread 3.43 3.18 3.03 3.03
Peer Group Percentile 55 58 49 48
Source: TAFS, published by Sheshunoff 2
FERGUSON & COMPANY Exhibit III
NORTHFIELD FEDERAL SAVINGS
BALTIMORE, MD
FINANCIAL HIGHLIGHTS
12/31/96 3/31/97 6/30/97 9/30/97
($000's)
BALANCE SHEET:
Total Assets 32,228 33,102 33,443 35,124
% Change in Assets 0.67 2.71 1.03 5.03
Total Loans 23,968 24,827 26,695 29,973
Deposits 29,103 29,700 29,784 30,098
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 2,745 2,804 2,897 2,992
Tangible Capital 2,768 2,832 2,921 3,014
Core Capital 2,768 2,832 2,921 3,014
Risk-Based Capital 2,868 2,935 3,026 3,122
Equity Capital/Total Assets 8.52 8.47 8.66 8.52
Core Capital/Risk Based Assets 18.06 18.05 17.99 16.95
Core Capital/Adj Tang Assets 8.58 8.55 8.73 8.58
Tangible Cap/Tangible Assets 8.58 8.55 8.73 8.58
Risk-Based Cap/Risk-Wt Assets 18.71 18.71 18.64 17.56
PROFITABILITY:
Net Income(Loss) 54 63 89 93
Ret on Avg Assets Bef Ext Item 0.67 0.77 1.07 1.09
Return on Average Equity 7.95 9.08 12.49 12.63
Net Interest Income/Avg Assets 3.39 3.25 3.38 3.36
Noninterest Income/Avg Assets 0.15 0.20 0.16 0.25
Noninterest Expense/Avg Assets 2.54 1.87 1.86 1.89
Yield/Cost Spread 3.09 2.95 3.08 3.06
LIQUIDITY:
Int Earn Assets/Int Bear Liab 109.07 109.43 110.13 108.55
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.47 -- 0.30 0.86
Nonaccrual Loans/Gross Loans -- -- -- --
Nonaccrual Lns/Ln Loss Reserve -- -- -- --
Repos Assets/Tot Assets -- -- -- --
Net Chrg-Off/Av Adj Lns -- -- -- --
Nonmtg 1-4 Constr&Conv Lns/TA 8.11 7.40 7.81 7.08
Source: TAFS, published by Sheshunoff 3
FERGUSON & COMPANY Exhibit III
NORTHFIELD FEDERAL SAVINGS
BALTIMORE, MD
SELECTED PEER GROUP RATIOS & RANKINGS
12/31/96 3/31/97 6/30/97 9/30/97
Peer Group Category 2 2 2 2
CAPITAL:
Equity Capital/Total Assets 8.52 8.47 8.66 8.52
Peer Group Percentile 37 35 37 32
Core Cap/Adj Tangible Assets 8.58 8.55 8.73 8.58
Peer Group Percentile 40 37 40 35
Tangible Cap/Tangible Assets 8.58 8.55 8.73 8.58
Peer Group Percentile 40 37 40 36
Risk-Based Cap/Risk-Wt Assets 18.71 18.71 18.64 17.56
Peer Group Percentile 44 45 45 38
ASSET QUALITY:
Risk Assets/Total Assets 8.11 7.40 7.81 7.08
Peer Group Percentile 33 37 35 42
Risk Weighted Assts/Tot Assts 47.56 47.39 48.55 50.62
Peer Group Percentile 57 59 56 49
Nonaccrual Loans/Gross Loans -- -- -- --
Peer Group Percentile 100 100 100 100
Repos Assets/Tot Assets -- -- -- --
Peer Group Percentile 100 100 100 100
90+ Day Del Loans/Gross Loans 0.45 -- 0.30 0.87
Peer Group Percentile 34 100 39 22
90Day P Due+NonAccr-(1-4)/LLR 114.00 -- -- --
Peer Group Percentile 12 100 100 100
LIQUIDITY:
Avg Reg Liquidity Ratio 12.69 12.94 8.32 5.48
Peer Group Percentile 45 43 20 5
PROFITABILITY:
Ret on Avg Assets Bef Ext Item 0.67 0.77 1.07 1.09
Peer Group Percentile 43.00 51.00 83.00 84.00
Return on Equity Capital 7.87 8.99 12.29 12.43
Peer Group Percentile 57 69 90 91
Int Earn Assets/Int Bear Liab 109.07 109.43 110.13 108.55
Peer Group Percentile 64 67 67 61
Yield on Earning Assts 7.85 7.63 7.79 7.89
Peer Group Percentile 55 44 52 57
Cost of Funds 4.76 4.68 4.71 4.83
Peer Group Percentile 50 53 58 52
Yield/Cost Spread 3.09 2.95 3.08 3.06
Peer Group Percentile 50 45 49 52
Source: TAFS, published by Sheshunoff 4
EXHIBIT IV
FERGUSON & COMPANY Exhibit IV
CENTRAL KENTUCKY FSB
DANVILLE, KY
TICKER CKFB
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
($000'S)
BALANCE SHEET:
Total Assets 56,377 56,545 60,014 59,868
% Change in Assets 12.64 0.30 6.13 (0.24)
Total Loans 45,441 49,997 53,544 55,580
Deposits 44,273 43,126 44,762 43,840
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 11,290 12,295 12,431 12,308
Tangible Capital 10,989 11,781 11,967 12,004
Core Capital 10,989 11,781 11,967 12,004
Risk-Based Capital 11,065 11,881 12,074 12,123
Equity Capital/Total Assets 20.03 21.74 20.71 20.56
Core Capital/Risk Based Assets 39.04 33.63 35.07 34.22
Core Capital/Adj Tang Assets 19.65 21.03 20.10 20.15
Tangible Cap/Tangible Assets 19.65 21.03 20.10 20.15
Risk-Based Cap/Risk-Wt Assets 39.31 33.92 35.38 34.56
PROFITABILITY:
Net Income(Loss) 542 764 827 927
Ret on Avg Assets Bef Ext Item 1.02 1.35 1.40 2.05
Return on Average Equity 6.39 6.48 6.55 9.73
Net Interest Income/Avg Assets 2.98 3.83 3.71 3.73
Noninterest Income/Avg Assets 0.16 0.16 0.65 1.12
Noninterest Expense/Avg Assets 1.60 1.87 2.27 1.67
Yield/Cost Spread 2.46 3.08 2.87 2.79
LIQUIDITY:
Int Earn Assets/Int Bear Liab 123.66 125.92 123.97 124.12
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 1.48 1.09 1.25 1.29
Nonaccrual Loans/Gross Loans -- 0.00 0.16 0.26
Nonaccrual Lns/Ln Loss Reserve -- 2.00 81.31 122.69
Repos Assets/Tot Assets -- -- -- --
Net Chrg-Off/Av Adj Lns -- -- -- 0.14
Nonmtg 1-4 Constr&Conv Lns/TA 10.51 13.09 12.79 14.05
Source: TAFS, published by Sheshunoff 1
FERGUSON & COMPANY Exhibit IV
HOME BUILDING SVGS BK FSB
WASHINGTON, IN
TICKER HBBI
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
($000'S)
BALANCE SHEET:
Total Assets 42,107 42,796 44,337 41,488
% Change in Assets (1.66) 1.64 3.60 (6.43)
Total Loans 29,944 29,177 28,500 28,725
Deposits 36,629 33,283 35,589 32,511
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 3,090 4,639 4,335 4,475
Tangible Capital 3,090 4,611 4,338 4,463
Core Capital 3,090 4,611 4,338 4,463
Risk-Based Capital 3,167 4,688 4,417 4,544
Equity Capital/Total Assets 7.34 10.84 9.78 10.79
Core Capital/Risk Based Assets 13.65 20.99 20.19 21.04
Core Capital/Adj Tang Assets 7.35 10.79 9.78 10.76
Tangible Cap/Tangible Assets 7.35 10.79 9.78 10.76
Risk-Based Cap/Risk-Wt Assets 13.99 21.35 20.56 21.42
PROFITABILITY:
Net Income(Loss) 327 421 (138) 273
Ret on Avg Assets Bef Ext Item 0.77 0.99 (0.32) 0.81
Return on Average Equity 11.11 10.89 (3.15) 8.22
Net Interest Income/Avg Assets 3.21 3.40 3.18 3.23
Noninterest Income/Avg Assets 0.24 0.38 0.34 0.36
Noninterest Expense/Avg Assets 2.10 2.22 2.86 2.25
Yield/Cost Spread 3.32 3.45 3.18 3.24
LIQUIDITY:
Int Earn Assets/Int Bear Liab 102.72 105.49 103.42 105.49
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.68 0.32 1.60 0.87
Nonaccrual Loans/Gross Loans 0.67 0.20 1.59 0.64
Nonaccrual Lns/Ln Loss Reserve 263.64 77.92 577.22 224.69
Repos Assets/Tot Assets -- -- -- --
Net Chrg-Off/Av Adj Lns 0.03 -- 1.44 0.01
Nonmtg 1-4 Constr&Conv Lns/TA 0.53 0.81 0.69 1.28
Source: TAFS, published by Sheshunoff 2
FERGUSON & COMPANY Exhibit IV
HOME CITY FSB OF SPRINGFIELD
SPRINGFIELD, OH
TICKER HCFC
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
($000'S)
BALANCE SHEET:
Total Assets 45,622 53,225 68,370 69,713
% Change in Assets 12.81 16.67 28.45 1.96
Total Loans 35,698 44,014 50,835 60,143
Deposits 37,857 45,021 53,458 53,891
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 4,548 5,179 10,225 10,863
Tangible Capital 4,513 4,954 9,955 10,544
Core Capital 4,513 4,954 9,955 10,544
Risk-Based Capital 4,779 5,266 10,355 10,987
Equity Capital/Total Assets 9.97 9.73 14.96 15.58
Core Capital/Risk Based Assets 18.72 17.68 28.47 25.50
Core Capital/Adj Tang Assets 9.89 9.35 14.62 15.19
Tangible Cap/Tangible Assets 9.89 9.35 14.62 15.19
Risk-Based Cap/Risk-Wt Assets 19.82 18.79 29.61 26.57
PROFITABILITY:
Net Income(Loss) 621 537 495 585
Ret on Avg Assets Bef Ext Item 1.44 1.09 0.86 1.16
Return on Average Equity 14.82 11.08 8.31 7.42
Net Interest Income/Avg Assets 4.48 3.46 3.16 3.49
Noninterest Income/Avg Assets 0.48 0.69 0.92 0.45
Noninterest Expense/Avg Assets 2.48 2.47 2.81 2.19
Yield/Cost Spread 4.30 3.23 2.96 2.95
LIQUIDITY:
Int Earn Assets/Int Bear Liab 108.60 106.21 113.47 113.26
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.28 0.52 0.45 0.94
Nonaccrual Loans/Gross Loans 0.26 0.49 0.43 0.95
Nonaccrual Lns/Ln Loss Reserve 24.82 53.76 45.36 129.12
Repos Assets/Tot Assets -- -- -- --
Net Chrg-Off/Av Adj Lns -- 0.04 0.01 --
Nonmtg 1-4 Constr&Conv Lns/TA 24.25 23.30 19.22 21.28
Source: TAFS, published by Sheshunoff 3
FERGUSON & COMPANY Exhibit IV
CITIZENS L&SC
LONDON, OH
TICKER LONF
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
($000'S)
BALANCE SHEET:
Total Assets 32,226 34,615 35,289 36,778
% Change in Assets 4.24 7.41 1.95 4.22
Total Loans 26,717 27,877 28,003 29,628
Deposits 28,754 30,989 28,795 29,951
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 3,123 3,267 5,524 5,817
Tangible Capital 3,123 3,267 5,524 5,817
Core Capital 3,123 3,267 5,524 5,817
Risk-Based Capital 3,315 3,454 5,712 6,005
Equity Capital/Total Assets 9.69 9.44 15.65 15.82
Core Capital/Risk Based Assets 18.01 18.11 28.82 29.78
Core Capital/Adj Tang Assets 9.69 9.44 15.65 15.82
Tangible Cap/Tangible Assets 9.69 9.44 15.65 15.82
Risk-Based Cap/Risk-Wt Assets 19.12 19.15 29.80 30.75
PROFITABILITY:
Net Income(Loss) 244 144 225 293
Ret on Avg Assets Bef Ext Item 0.77 0.43 0.64 1.07
Return on Average Equity 8.13 4.51 4.18 6.88
Net Interest Income/Avg Assets 3.28 2.87 3.51 3.51
Noninterest Income/Avg Assets 0.25 0.24 0.21 0.22
Noninterest Expense/Avg Assets 2.38 2.43 2.78 2.16
Yield/Cost Spread 3.10 2.61 2.94 2.92
LIQUIDITY:
Int Earn Assets/Int Bear Liab 107.79 107.36 116.24 116.20
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.09 0.16 1.06 0.90
Nonaccrual Loans/Gross Loans 0.08 0.16 1.00 0.88
Nonaccrual Lns/Ln Loss Reserve 11.46 24.06 159.04 138.83
Repos Assets/Tot Assets -- -- -- --
Net Chrg-Off/Av Adj Lns -- 0.02 (0.00) --
Nonmtg 1-4 Constr&Conv Lns/TA 16.87 15.78 14.37 14.14
Source: TAFS, published by Sheshunoff 4
FERGUSON & COMPANY Exhibit IV
COMMUNITY FS&LA
LITTLE FALLS, MN
TICKER MIVI
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
($000'S)
BALANCE SHEET:
Total Assets 62,111 69,212 70,306 68,547
% Change in Assets (4.36) 11.43 1.58 (2.50)
Total Loans 44,310 43,438 44,095 44,858
Deposits 55,312 54,689 56,426 55,212
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 6,137 10,912 11,504 11,998
Tangible Capital 6,043 10,692 10,639 10,886
Core Capital 6,043 10,692 10,639 10,886
Risk-Based Capital 6,419 11,092 11,068 11,318
Equity Capital/Total Assets 9.88 15.77 16.36 17.50
Core Capital/Risk Based Assets 18.90 32.13 31.25 31.91
Core Capital/Adj Tang Assets 9.74 15.50 15.32 16.32
Tangible Cap/Tangible Assets 9.74 15.50 15.32 16.32
Risk-Based Cap/Risk-Wt Assets 20.08 33.33 32.51 33.17
PROFITABILITY:
Net Income(Loss) 414 837 520 646
Ret on Avg Assets Bef Ext Item 0.65 1.27 0.74 1.24
Return on Average Equity 7.03 9.82 4.81 7.34
Net Interest Income/Avg Assets 3.40 3.80 3.47 3.64
Noninterest Income/Avg Assets 0.40 0.55 0.43 0.42
Noninterest Expense/Avg Assets 2.40 2.26 2.70 2.00
Yield/Cost Spread 3.23 3.47 2.94 3.01
LIQUIDITY:
Int Earn Assets/Int Bear Liab 108.61 115.61 118.25 119.16
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.09 0.22 0.59 0.51
Nonaccrual Loans/Gross Loans 0.05 -- 0.38 0.44
Nonaccrual Lns/Ln Loss Reserve 2.06 -- 19.73 23.11
Repos Assets/Tot Assets -- -- -- --
Net Chrg-Off/Av Adj Lns (0.03) 0.33 0.02 0.04
Nonmtg 1-4 Constr&Conv Lns/TA 5.96 2.47 2.85 2.43
Source: TAFS, published by Sheshunoff 5
FERGUSON & COMPANY Exhibit IV
NEOSHO S&LA, FA
NEOSHO, MO
TICKER NSLB
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
($000'S)
BALANCE SHEET:
Total Assets 49,738 53,156 56,645 59,066
% Change in Assets (4.49) 6.87 6.56 4.27
Total Loans 25,095 28,013 31,762 34,056
Deposits 43,274 41,964 44,062 45,631
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 6,018 9,947 8,339 8,876
Tangible Capital 6,018 9,947 8,339 8,793
Core Capital 6,018 9,947 8,339 8,793
Risk-Based Capital 6,036 9,945 8,381 8,837
Equity Capital/Total Assets 12.10 18.71 14.72 15.03
Core Capital/Risk Based Assets 34.70 51.58 38.31 34.63
Core Capital/Adj Tang Assets 12.10 18.71 14.72 14.91
Tangible Cap/Tangible Assets 12.10 18.71 14.72 14.91
Risk-Based Cap/Risk-Wt Assets 34.81 51.57 38.50 34.81
PROFITABILITY:
Net Income(Loss) 471 471 186 289
Ret on Avg Assets Bef Ext Item 0.93 0.92 0.33 0.67
Return on Average Equity 8.16 5.90 1.97 4.49
Net Interest Income/Avg Assets 3.04 3.06 2.80 2.95
Noninterest Income/Avg Assets 0.59 0.54 0.43 0.42
Noninterest Expense/Avg Assets 2.17 2.32 2.79 2.38
Yield/Cost Spread 2.94 2.70 2.32 2.54
LIQUIDITY:
Int Earn Assets/Int Bear Liab 110.37 119.53 114.10 114.72
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.04 0.12 0.14 0.06
Nonaccrual Loans/Gross Loans -- 0.12 0.14 0.06
Nonaccrual Lns/Ln Loss Reserve -- 89.74 107.14 45.45
Repos Assets/Tot Assets -- -- -- --
Net Chrg-Off/Av Adj Lns -- (0.02) -- --
Nonmtg 1-4 Constr&Conv Lns/TA 0.42 0.33 0.20 0.99
Source: TAFS, published by Sheshunoff 6
FERGUSON & COMPANY Exhibit IV
PENNWOOD SVGS BK
PITTSBURGH, PA
TICKER PWBK
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
($000'S)
BALANCE SHEET:
Total Assets 40,464 41,592 46,707 47,546
% Change in Assets (2.18) 2.79 12.30 1.80
Securities-Book Value 5,123 11,765 18,306 13,320
Securities-Fair Value 5,030 11,811 18,318 13,328
Total Loans & Leases 25,349 23,321 21,515 28,962
Total Deposits 36,131 36,899 35,227 36,740
Loan/Deposit Ratio 70 63 61 79
Provision for Loan Losses 136 426 67 36
CAPITAL:
Equity Capital 3,877 4,065 9,378 8,645
Total Qualifying Capital(Est) 4,155 4,339 9,679 8,883
Equity Capital/Average Assets 9.48 9.91 21.19 18.04
Tot Qual Cap/Rk Bsd Asts(Est) 16.04 17.20 39.70 34.17
Tier 1 Cap/Rsk Bsed Asts(Est) 14.79 15.95 38.45 33.02
T1 Cap/Avg Assets(Lev Est) 9.37 9.61 20.14 17.51
Dividends Declared/Net Income -- -- 19.55 419.75
PROFITABILITY:
Net Income(Loss) 168 192 220 405
Return on Average Assets 0.41 0.47 0.50 1.13
Return on Average Equity Cap 4.46 4.84 3.65 5.93
Net Interest Margin 3.63 4.38 4.32 4.57
Net Int Income/Avg Assets 3.53 4.16 4.11 4.31
Noninterest Income/Avg Assets 0.23 0.06 0.18 0.18
Noninterest Exp/Avg Assets 3.09 2.77 3.42 2.80
ASSET QUALITY:
NPL+Frcl RE/Lns+Frcl RE 5.55 5.30 2.85 2.45
NPA's/Equity + LLR 33.20 27.40 6.37 7.94
LLR/Nonperf & Restrcd Lns 28.51 44.59 62.50 44.73
Foreclosed RE/Total Assets 0.23 0.42 0.28 0.08
90+ Day Del Loans/Total Loans 0.45 1.05 0.81 0.91
Loan Loss Reserves/Total Lns 1.48 2.05 1.42 1.04
Net Charge-Offs/Average Loans 0.37 1.33 1.07 0.16
Dom Risk R/E Lns/Tot Dom Lns 20.76 20.31 19.96 11.94
LIQUIDITY:
Brokered Dep/Total Dom Deps -- -- -- --
$100M+ Time Dep/Total Dom Dep 3.95 4.98 4.64 6.19
Int Earn Assets/Int Bear Liab 108.99 108.22 124.73 124.42
Pledged Sec/Total Sec -- -- -- --
Fair Value Sec/Amort Cost Sec 99.54 100.95 100.10 100.78
Source: BankSource, published by Sheshunoff
7
FERGUSON & COMPANY Exhibit IV
SOBIESKI FS&LA
SOUTH BEND, IN
TICKER SOBI
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
($000'S)
BALANCE SHEET:
Total Assets 70,694 72,595 75,773 81,969
% Change in Assets (4.11) 2.69 4.38 8.18
Total Loans 49,594 45,893 52,234 60,427
Deposits 64,309 61,399 59,714 58,645
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 5,917 10,002 9,321 9,139
Tangible Capital 5,917 9,964 9,331 9,136
Core Capital 5,917 9,964 9,331 9,136
Risk-Based Capital 6,117 10,164 9,531 9,336
Equity Capital/Total Assets 8.37 13.78 12.30 11.15
Core Capital/Risk Based Assets 19.89 35.15 29.37 23.88
Core Capital/Adj Tang Assets 8.37 13.73 12.31 11.15
Tangible Cap/Tangible Assets 8.37 13.73 12.31 11.15
Risk-Based Cap/Risk-Wt Assets 20.56 35.86 30.00 24.40
PROFITABILITY:
Net Income(Loss) 686 363 74 326
Ret on Avg Assets Bef Ext Item 0.95 0.57 0.10 0.56
Return on Average Equity 12.25 5.09 0.76 4.82
Net Interest Income/Avg Assets 3.53 3.02 2.92 2.99
Noninterest Income/Avg Assets 0.22 0.23 0.37 0.26
Noninterest Expense/Avg Assets 2.20 2.40 3.08 2.25
Yield/Cost Spread 3.45 2.84 2.69 2.83
LIQUIDITY:
Int Earn Assets/Int Bear Liab 105.04 109.97 107.58 107.37
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.30 0.17 0.38 0.17
Nonaccrual Loans/Gross Loans -- -- -- 0.18
Nonaccrual Lns/Ln Loss Reserve -- -- -- 53.00
Repos Assets/Tot Assets -- -- -- --
Net Chrg-Off/Av Adj Lns -- -- -- --
Nonmtg 1-4 Constr&Conv Lns/TA 0.50 3.57 4.53 1.92
Source: TAFS, published by Sheshunoff 8
FERGUSON & COMPANY Exhibit IV
SCOTLAND SVGS BK
LAURINBURG, NC
TICKER SSB
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
($000'S)
BALANCE SHEET:
Total Assets 57,740 58,049 60,714 63,826
% Change in Assets 4.30 0.54 4.59 5.13
Securities-Book Value 14,250 11,806 11,018 9,979
Securities-Fair Value 14,086 11,912 11,081 10,037
Total Loans & Leases 37,296 42,003 46,305 46,712
Total Deposits 49,124 48,346 42,432 44,028
Loan/Deposit Ratio 76 87 109 106
Provision for Loan Losses 25 12 24 18
CAPITAL:
Equity Capital 7,921 8,860 17,136 18,705
Total Qualifying Capital(Est) 7,897 8,609 16,834 18,380
Equity Capital/Average Assets 14.01 15.30 26.95 30.02
Tot Qual Cap/Rk Bsd Asts(Est) 30.02 30.65 57.41 54.81
Tier 1 Cap/Rsk Bsed Asts(Est) 29.25 29.89 56.62 54.06
T1 Cap/Avg Assets(Lev Est) 13.05 14.11 27.12 28.57
Dividends Declared/Net Income -- -- 30.14 36.99
PROFITABILITY:
Net Income(Loss) 577 700 647 665
Return on Average Assets 1.02 1.21 1.02 1.42
Return on Average Equity Cap 7.69 8.34 4.08 4.95
Net Interest Margin 3.89 3.82 4.30 4.66
Net Int Income/Avg Assets 3.82 3.73 4.11 4.41
Noninterest Income/Avg Assets 0.27 0.11 0.09 0.08
Noninterest Exp/Avg Assets 2.44 1.96 2.58 2.84
ASSET QUALITY:
NPL+Frcl RE/Lns+Frcl RE -- -- 0.07 0.06
NPA's/Equity + LLR -- -- 0.18 0.16
LLR/Nonperf & Restrcd Lns -- -- 745.16 830.00
Foreclosed RE/Total Assets -- -- -- --
90+ Day Del Loans/Total Loans -- -- 0.07 0.06
Loan Loss Reserves/Total Lns 0.54 0.51 0.50 0.53
Net Charge-Offs/Average Loans -- -- 0.02 --
Dom Risk R/E Lns/Tot Dom Lns 7.58 6.59 6.50 5.52
LIQUIDITY:
Brokered Dep/Total Dom Deps -- -- -- --
$100M+ Time Dep/Total Dom Dep 7.36 8.60 6.66 6.15
Int Earn Assets/Int Bear Liab 115.85 118.12 142.09 142.82
Pledged Sec/Total Sec 2.55 6.02 5.95 6.95
Fair Value Sec/Amort Cost Sec 101.29 107.31 108.53 109.79
Source: BankSource, published by Sheshunoff
9
FERGUSON & COMPANY Exhibit IV
PEOPLES-THRIFT SVGS BK
NORRISTOWN, PA
TICKER USAB
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
($000'S)
BALANCE SHEET:
Total Assets 19,141 25,236 38,033 63,698
% Change in Assets (6.35) 31.84 50.71 67.48
Securities-Book Value 15,100 10,083 16,448 26,413
Securities-Fair Value 13,992 10,139 16,452 26,563
Total Loans & Leases 3,248 7,057 16,711 34,082
Total Deposits 17,051 20,943 27,974 46,195
Loan/Deposit Ratio 19 34 60 74
Provision for Loan Losses -16 51 125 75
CAPITAL:
Equity Capital 1,507 4,025 4,785 5,000
Total Qualifying Capital(Est) 1,516 3,883 4,776 5,107
Equity Capital/Average Assets 7.62 18.14 16.16 10.90
Tot Qual Cap/Rk Bsd Asts(Est) 29.48 47.93 26.12 11.16
Tier 1 Cap/Rsk Bsed Asts(Est) 29.30 47.19 25.11 10.60
T1 Cap/Avg Assets(Lev Est) 7.91 15.12 13.33 8.71
Dividends Declared/Net Income (0.00) (0.00) -- --
PROFITABILITY:
Net Income(Loss) (44) (176) 297 318
Return on Average Assets (0.22) (0.79) 1.00 0.92
Return on Average Equity Cap (2.92) (6.36) 6.60 8.87
Net Interest Margin 2.33 2.00 5.98 4.81
Net Int Income/Avg Assets 2.30 1.98 5.83 4.63
Noninterest Income/Avg Assets 0.06 0.03 0.17 0.15
Noninterest Exp/Avg Assets 2.63 2.59 4.65 3.29
ASSET QUALITY:
NPL+Frcl RE/Lns+Frcl RE -- -- 2.18 1.09
NPA's/Equity + LLR -- -- 7.35 7.04
LLR/Nonperf & Restrcd Lns -- -- 49.86 69.46
Foreclosed RE/Total Assets -- -- -- --
90+ Day Del Loans/Total Loans -- -- 0.28 0.01
Loan Loss Reserves/Total Lns 0.28 0.85 1.09 0.75
Net Charge-Offs/Average Loans -- -- 0.02 --
Dom Risk R/E Lns/Tot Dom Lns -- 3.54 23.74 65.73
LIQUIDITY:
Brokered Dep/Total Dom Deps -- -- -- --
$100M+ Time Dep/Total Dom Dep 5.06 8.48 8.98 8.97
Int Earn Assets/Int Bear Liab 107.04 118.19 113.59 106.53
Pledged Sec/Total Sec -- -- -- --
Fair Value Sec/Amort Cost Sec 92.66 100.81 100.22 101.02
Source: BankSource, published by Sheshunoff
10
EXHIBIT V
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
Deposit Current Current
Insurance Stock Market
Agency Price Value
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($) ($M)
AABC Access Anytime Bancorp Inc. Clovis NM SW SAIF NASDAQ 08/08/86 10.875 12.97
ABBK Abington Bancorp Inc. Abington MA NE BIF NASDAQ 06/10/86 21.000 76.38
ABCL Alliance Bancorp Inc. Hinsdale IL MW SAIF NASDAQ 07/07/92 27.500 220.61
ABCW Anchor BanCorp Wisconsin Madison WI MW SAIF NASDAQ 07/16/92 43.000 389.23
AFED AFSALA Bancorp Inc. Amsterdam NY MA SAIF NASDAQ 10/01/96 19.625 27.05
AHM H.F. Ahmanson & Co. Irwindale CA WE SAIF NYSE 10/25/72 62.438 6,796.38
ALBC Albion Banc Corp. Albion NY MA SAIF NASDAQ 07/26/93 10.750 8.06
ALBK ALBANK Financial Corp. Albany NY MA SAIF NASDAQ 04/01/92 48.625 627.60
AMFC AMB Financial Corp. Munster IN MW SAIF NASDAQ 04/01/96 17.125 16.51
ANA Acadiana Bancshares Inc. Lafayette LA SW SAIF AMSE 07/16/96 22.125 58.78
ANDB Andover Bancorp Inc. Andover MA NE BIF NASDAQ 05/08/86 39.875 206.08
ANE Alliance Bncp of New England Vernon CT NE BIF AMSE 12/19/86 19.875 32.52
ASBI Ameriana Bancorp New Castle IN MW SAIF NASDAQ 03/02/87 20.500 66.24
ASBP ASB Financial Corp. Portsmouth OH MW SAIF NASDAQ 05/11/95 13.750 22.49
ASFC Astoria Financial Corp. Lake Success NY MA SAIF NASDAQ 11/18/93 55.875 1,463.80
BANC BankAtlantic Bancorp Inc. Fort Lauderdale FL SE SAIF NASDAQ 11/29/83 13.500 341.17
BDJI First Federal Bancorp. Bemidji MN MW SAIF NASDAQ 04/04/95 20.750 20.71
BFD BostonFed Bancorp Inc. Burlington MA NE SAIF AMSE 10/24/95 22.125 122.14
BFSB Bedford Bancshares Inc. Bedford VA SE SAIF NASDAQ 08/22/94 28.500 32.56
BKC American Bank of Connecticut Waterbury CT NE BIF AMSE 12/01/81 50.250 116.63
BKCT Bancorp Connecticut Inc. Southington CT NE BIF NASDAQ 07/03/86 18.500 94.20
BKUNA BankUnited Financial Corp. Coral Gables FL SE SAIF NASDAQ 12/11/85 14.688 208.70
BNKU Bank United Corp. Houston TX SW SAIF NASDAQ 08/09/96 47.125 1,488.94
BPLS Bank Plus Corp. Los Angeles CA WE SAIF NASDAQ NA 14.750 285.67
BVCC Bay View Capital Corp. San Mateo CA WE SAIF NASDAQ 05/09/86 34.750 700.12
BYFC Broadway Financial Corp. Los Angeles CA WE SAIF NASDAQ 01/09/96 12.750 11.01
CAFI Camco Financial Corp. Cambridge OH MW SAIF NASDAQ NA 25.375 81.63
CASB Cascade Financial Corp. Everett WA WE SAIF NASDAQ 09/16/92 15.500 52.62
CASH First Midwest Financial Inc. Storm Lake IA MW SAIF NASDAQ 09/20/93 22.875 61.58
CATB Catskill Financial Corp. Catskill NY MA BIF NASDAQ 04/18/96 18.375 85.08
CBCI Calumet Bancorp Inc. Dolton IL MW SAIF NASDAQ 02/20/92 37.500 117.81
CBES CBES Bancorp Inc. Excelsior Springs MO MW SAIF NASDAQ 09/30/96 25.500 25.83
CBSA Coastal Bancorp Inc. Houston TX SW SAIF NASDAQ NA 31.313 156.84
CEBK Central Co-operative Bank Somerville MA NE BIF NASDAQ 10/24/86 32.000 62.88
CENB Century Bancorp Inc. Thomasville NC SE SAIF NASDAQ 12/23/96 93.750 38.19
CFB Commercial Federal Corp. Omaha NE MW SAIF NYSE 12/31/84 35.375 1,332.09
CFCP Coastal Financial Corp. Myrtle Beach SC SE SAIF NASDAQ 09/26/90 21.750 101.66
CFFC Community Financial Corp. Staunton VA SE SAIF NASDAQ 03/30/88 30.750 39.27
CFNC Carolina Fincorp Inc. Rockingham NC SE SAIF NASDAQ 11/25/96 17.750 33.82
CFSB CFSB Bancorp Inc. Lansing MI MW SAIF NASDAQ 06/22/90 29.500 224.42
CFTP Community Federal Bancorp Tupelo MS SE SAIF NASDAQ 03/26/96 18.688 86.50
CIBI Community Investors Bancorp Bucyrus OH MW SAIF NASDAQ 02/07/95 17.250 15.57
CKFB CKF Bancorp Inc. Danville KY MW SAIF NASDAQ 01/04/95 19.500 16.91
CLAS Classic Bancshares Inc. Ashland KY MW SAIF NASDAQ 12/29/95 18.875 24.54
CMRN Cameron Financial Corp Cameron MO MW SAIF NASDAQ 04/03/95 20.000 51.29
CMSB Commonwealth Bancorp Inc. Norristown PA MA SAIF NASDAQ 06/17/96 20.375 331.04
CNIT CENIT Bancorp Inc. Norfolk VA SE SAIF NASDAQ 08/06/92 71.250 112.17
COFI Charter One Financial Cleveland OH MW SAIF NASDAQ 01/22/88 60.594 3,868.86
COOP Cooperative Bankshares Inc. Wilmington NC SE SAIF NASDAQ 08/21/91 20.250 60.43
CRZY Crazy Woman Creek Bancorp Buffalo WY WE SAIF NASDAQ 03/29/96 16.500 15.75
CVAL Chester Valley Bancorp Inc. Downingtown PA MA SAIF NASDAQ 03/27/87 31.750 69.14
DCBI Delphos Citizens Bancorp Inc. Delphos OH MW SAIF NASDAQ 11/21/96 24.250 47.18
DIBK Dime Financial Corp. Wallingford CT NE BIF NASDAQ 07/09/86 31.250 161.38
DIME Dime Community Bancorp Inc. Brooklyn NY MA BIF NASDAQ 06/26/96 25.125 312.51
DME Dime Bancorp Inc. New York NY MA BIF NYSE 08/19/86 30.500 3,548.92
DNFC D & N Financial Corp. Hancock MI MW SAIF NASDAQ 02/13/85 26.250 238.85
DSL Downey Financial Corp. Newport Beach CA WE SAIF NYSE 01/01/71 29.250 782.61
Source: SNL & F&C calculations 1
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
Deposit Current Current
Insurance Stock Market
Agency Price Value
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($) ($M)
EBSI Eagle Bancshares Tucker GA SE SAIF NASDAQ 04/01/86 20.500 117.23
EFBI Enterprise Federal Bancorp West Chester OH MW SAIF NASDAQ 10/17/94 33.375 66.28
EMLD Emerald Financial Corp. Strongsville OH MW SAIF NASDAQ NA 22.125 112.23
EQSB Equitable Federal Savings Bank Wheaton MD MA SAIF NASDAQ 09/10/93 30.500 37.11
ESBK Elmira Savings Bank (The) Elmira NY MA BIF NASDAQ 03/01/85 28.875 21.42
ETFS East Texas Financial Services Tyler TX SW SAIF NASDAQ 01/10/95 21.750 22.32
FBBC First Bell Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 06/29/95 18.750 122.07
FBCI Fidelity Bancorp Inc. Chicago IL MW SAIF NASDAQ 12/15/93 24.500 68.96
FBCV 1ST Bancorp Vincennes IN MW SAIF NASDAQ 04/07/87 25.125 27.38
FBER 1st Bergen Bancorp Wood-Ridge NJ MA SAIF NASDAQ 04/01/96 19.750 56.57
FBHC Fort Bend Holding Corp. Rosenberg TX SW SAIF NASDAQ 06/30/93 20.875 34.96
FBSI First Bancshares Inc. Mountain Grove MO MW SAIF NASDAQ 12/22/93 17.000 37.16
FCBF FCB Financial Corp. Oshkosh WI MW SAIF NASDAQ 09/24/93 31.250 120.70
FCME First Coastal Corp. Westbrook ME NE BIF NASDAQ NA 14.625 19.88
FDEF First Defiance Financial Defiance OH MW SAIF NASDAQ 10/02/95 15.250 130.05
FED FirstFed Financial Corp. Santa Monica CA WE SAIF NYSE 12/16/83 40.375 427.48
FESX First Essex Bancorp Inc. Andover MA NE BIF NASDAQ 08/04/87 23.625 178.05
FFBA First Colorado Bancorp Inc. Lakewood CO SW SAIF NASDAQ 01/02/96 25.250 424.41
FFBH First Federal Bancshares of AR Harrison AR SE SAIF NASDAQ 05/03/96 26.000 127.30
FFBI First Financial Bancorp Inc. Belvidere IL MW SAIF NASDAQ 10/04/93 23.250 9.65
FFBZ First Federal Bancorp Inc. Zanesville OH MW SAIF NASDAQ 07/13/92 23.000 36.23
FFCH First Financial Holdings Inc. Charleston SC SE SAIF NASDAQ 11/10/83 52.500 354.93
FFDB FirstFed Bancorp Inc. Bessemer AL SE SAIF NASDAQ 11/19/91 24.000 27.72
FFDF FFD Financial Corp. Dover OH MW SAIF NASDAQ 04/03/96 18.750 27.09
FFED Fidelity Federal Bancorp Evansville IN MW SAIF NASDAQ 08/31/87 9.750 30.50
FFES First Federal of East Hartford East Hartford CT NE SAIF NASDAQ 06/23/87 38.500 104.17
FFFD North Central Bancshares Inc. Fort Dodge IA MW SAIF NASDAQ 03/21/96 21.000 68.60
FFHH FSF Financial Corp. Hutchinson MN MW SAIF NASDAQ 10/07/94 20.125 61.29
FFHS First Franklin Corp. Cincinnati OH MW SAIF NASDAQ 01/26/88 27.000 32.18
FFIC Flushing Financial Corp. Flushing NY MA BIF NASDAQ 11/21/95 25.500 200.55
FFKY First Federal Financial Corp. Elizabethtown KY MW SAIF NASDAQ 07/15/87 22.000 91.16
FFLC FFLC Bancorp Inc. Leesburg FL SE SAIF NASDAQ 01/04/94 19.375 72.54
FFOH Fidelity Financial of Ohio Cincinnati OH MW SAIF NASDAQ 03/04/96 18.000 100.67
FFPB First Palm Beach Bancorp Inc. West Palm Beach FL SE SAIF NASDAQ 09/29/93 37.875 191.45
FFSL First Independence Corp. Independence KS MW SAIF NASDAQ 10/08/93 14.750 14.07
FFSX First Fed SB of Siouxland(MHC) Sioux City IA MW SAIF NASDAQ 07/13/92 31.125 88.22
FFWC FFW Corp. Wabash IN MW SAIF NASDAQ 04/05/93 18.500 26.82
FFWD Wood Bancorp Inc. Bowling Green OH MW SAIF NASDAQ 08/31/93 22.000 58.32
FFYF FFY Financial Corp. Youngstown OH MW SAIF NASDAQ 06/28/93 34.250 139.40
FGHC First Georgia Holding Inc. Brunswick GA SE SAIF NASDAQ 02/11/87 10.000 30.52
FIBC Financial Bancorp Inc. Long Island City NY MA SAIF NASDAQ 08/17/94 26.000 44.45
FISB First Indiana Corp. Indianapolis IN MW SAIF NASDAQ 08/02/83 29.250 370.54
FKFS First Keystone Financial Media PA MA SAIF NASDAQ 01/26/95 17.500 42.22
FKKY Frankfort First Bancorp Inc. Frankfort KY MW SAIF NASDAQ 07/10/95 16.250 26.31
FLAG FLAG Financial Corp. LaGrange GA SE SAIF NASDAQ 12/11/86 20.625 42.01
FLFC First Liberty Financial Corp. Macon GA SE SAIF NASDAQ 12/06/83 30.125 233.42
FLGS Flagstar Bancorp Inc. Bloomfield Hills MI MW SAIF NASDAQ NA 22.625 309.28
FLKY First Lancaster Bancshares Lancaster KY MW SAIF NASDAQ 07/01/96 15.125 14.39
FMCO FMS Financial Corp. Burlington NJ MA SAIF NASDAQ 12/14/88 35.000 83.57
FMSB First Mutual Savings Bank Bellevue WA WE BIF NASDAQ 12/17/85 18.375 75.80
FNGB First Northern Capital Corp. Green Bay WI MW SAIF NASDAQ 12/29/83 13.000 114.99
FSBI Fidelity Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 06/24/88 28.875 45.09
FSTC First Citizens Corp. Newnan GA SE SAIF NASDAQ 03/01/86 32.000 88.72
FTF Texarkana First Financial Corp Texarkana AR SE SAIF AMSE 07/07/95 28.250 49.71
FTFC First Federal Capital Corp. La Crosse WI MW SAIF NASDAQ 11/02/89 31.875 292.95
FTSB Fort Thomas Financial Corp. Fort Thomas KY MW SAIF NASDAQ 06/28/95 15.500 22.85
FWWB First SB of Washington Bancorp Walla Walla WA WE SAIF NASDAQ 11/01/95 25.500 255.28
Source: SNL & F&C calculations 2
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
Deposit Current Current
Insurance Stock Market
Agency Price Value
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($) ($M)
GAF GA Financial Inc. Pittsburgh PA MA SAIF AMSE 03/26/96 19.625 151.46
GDW Golden West Financial Oakland CA WE SAIF NYSE 05/29/59 89.250 5,093.36
GFCO Glenway Financial Corp. Cincinnati OH MW SAIF NASDAQ 11/30/90 20.500 46.79
GPT GreenPoint Financial Corp. New York NY MA BIF NYSE 01/28/94 74.250 3,142.26
GSBC Great Southern Bancorp Inc. Springfield MO MW SAIF NASDAQ 12/14/89 25.500 205.22
GSFC Green Street Financial Corp. Fayetteville NC SE SAIF NASDAQ 04/04/96 18.375 78.98
GUPB GFSB Bancorp Inc. Gallup NM SW SAIF NASDAQ 06/30/95 20.375 16.31
HALL Hallmark Capital Corp. West Allis WI MW SAIF NASDAQ 01/03/94 16.000 46.94
HARB Harbor Florida Bancorp (MHC) Fort Pierce FL SE SAIF NASDAQ 01/06/94 70.500 352.12
HARL Harleysville Savings Bank Harleysville PA MA SAIF NASDAQ 08/04/87 30.000 50.01
HAVN Haven Bancorp Inc. Woodhaven NY MA SAIF NASDAQ 09/23/93 24.500 215.23
HBBI Home Building Bancorp Washington IN MW SAIF NASDAQ 02/08/95 22.625 7.05
HBFW Home Bancorp Fort Wayne IN MW SAIF NASDAQ 03/30/95 32.750 78.12
HBNK Highland Bancorp Inc. Burbank CA WE SAIF NASDAQ NA 35.750 82.88
HBS Haywood Bancshares Inc. Waynesville NC SE BIF AMSE 12/18/87 21.875 27.35
HFFB Harrodsburg First Fin Bancorp Harrodsburg KY MW SAIF NASDAQ 10/04/95 16.688 31.12
HFFC HF Financial Corp. Sioux Falls SD MW SAIF NASDAQ 04/08/92 29.000 86.34
HFNC HFNC Financial Corp. Charlotte NC SE SAIF NASDAQ 12/29/95 13.625 234.25
HFSA Hardin Bancorp Inc. Hardin MO MW SAIF NASDAQ 09/29/95 18.750 15.44
HHFC Harvest Home Financial Corp. Cheviot OH MW SAIF NASDAQ 10/10/94 15.000 13.37
HIFS Hingham Instit. for Savings Hingham MA NE BIF NASDAQ 12/20/88 33.000 43.02
HMNF HMN Financial Inc. Spring Valley MN MW SAIF NASDAQ 06/30/94 29.000 120.19
HOMF Home Federal Bancorp Seymour IN MW SAIF NASDAQ 01/23/88 31.500 161.28
HPBC Home Port Bancorp Inc. Nantucket MA NE BIF NASDAQ 08/25/88 26.500 48.81
HRBF Harbor Federal Bancorp Inc. Baltimore MD MA SAIF NASDAQ 08/12/94 24.000 40.64
HRZB Horizon Financial Corp. Bellingham WA WE BIF NASDAQ 08/01/86 17.875 133.24
HTHR Hawthorne Financial Corp. El Segundo CA WE SAIF NASDAQ NA 19.750 60.99
HWEN Home Financial Bancorp Spencer IN MW SAIF NASDAQ 07/02/96 9.000 8.36
HZFS Horizon Financial Svcs Corp. Oskaloosa IA MW SAIF NASDAQ 06/30/94 14.500 12.37
IBSF IBS Financial Corp. Cherry Hill NJ MA SAIF NASDAQ 10/13/94 17.750 194.26
INBI Industrial Bancorp Inc. Bellevue OH MW SAIF NASDAQ 08/01/95 18.500 94.40
IPSW Ipswich Savings Bank Ipswich MA NE BIF NASDAQ 05/26/93 14.250 33.99
ITLA ITLA Capital Corp. La Jolla CA WE BIF NASDAQ 10/24/95 20.188 158.91
IWBK InterWest Bancorp Inc. Oak Harbor WA WE SAIF NASDAQ NA 41.500 333.54
JSB JSB Financial Inc. Lynbrook NY MA BIF NYSE 06/27/90 53.813 533.82
JSBA Jefferson Savings Bancorp Ballwin MO MW SAIF NASDAQ 04/08/93 27.000 270.40
JXVL Jacksonville Bancorp Inc. Jacksonville TX SW SAIF NASDAQ 04/01/96 20.500 50.09
KFBI Klamath First Bancorp Klamath Falls OR WE SAIF NASDAQ 10/05/95 22.500 224.87
KNK Kankakee Bancorp Inc. Kankakee IL MW SAIF AMSE 01/06/93 33.875 46.46
KSBK KSB Bancorp Inc. Kingfield ME NE BIF NASDAQ 06/24/93 19.250 23.85
KYF Kentucky First Bancorp Inc. Cynthiana KY MW SAIF AMSE 08/29/95 13.875 17.39
LARK Landmark Bancshares Inc. Dodge City KS MW SAIF NASDAQ 03/28/94 22.000 37.15
LARL Laurel Capital Group Inc. Allison Park PA MA SAIF NASDAQ 02/20/87 22.000 47.85
LFBI Little Falls Bancorp Inc. Little Falls NJ MA SAIF NASDAQ 01/05/96 20.000 52.16
LFCO Life Financial Corp. Riverside CA WE SAIF NASDAQ NA 16.000 104.73
LFED Leeds Federal Bankshares (MHC) Baltimore MD MA SAIF NASDAQ 05/02/94 21.625 112.06
LISB Long Island Bancorp Inc. Melville NY MA SAIF NASDAQ 04/18/94 60.188 1,446.23
LOGN Logansport Financial Corp. Logansport IN MW SAIF NASDAQ 06/14/95 16.250 20.49
LONF London Financial Corp. London OH MW SAIF NASDAQ 04/01/96 14.875 7.59
LSBI LSB Financial Corp. Lafayette IN MW BIF NASDAQ 02/03/95 28.250 25.89
LSBX Lawrence Savings Bank North Andover MA NE BIF NASDAQ 05/02/86 16.875 72.36
LVSB Lakeview Financial Paterson NJ MA SAIF NASDAQ 12/22/93 25.875 107.75
LXMO Lexington B&L Financial Corp. Lexington MO MW SAIF NASDAQ 06/06/96 16.500 18.49
MAFB MAF Bancorp Inc. Clarendon Hills IL MW SAIF NASDAQ 01/12/90 37.250 559.23
MARN Marion Capital Holdings Marion IN MW SAIF NASDAQ 03/18/93 27.000 48.10
MASB MASSBANK Corp. Reading MA NE BIF NASDAQ 05/28/86 49.375 176.31
MBB MSB Bancorp, Inc. Goshen NY MA BIF AMSE NA 34.875 99.19
Source: SNL & F&C calculations 3
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
Deposit Current Current
Insurance Stock Market
Agency Price Value
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($) ($M)
MBLF MBLA Financial Corp. Macon MO MW SAIF NASDAQ 06/24/93 28.125 35.27
MBSP Mitchell Bancorp Inc. Spruce Pine NC SE SAIF NASDAQ 07/12/96 17.000 15.83
MCBN Mid-Coast Bancorp Inc. Waldoboro ME NE SAIF NASDAQ 11/02/89 38.250 9.06
MDBK Medford Bancorp Inc. Medford MA NE BIF NASDAQ 03/18/86 43.875 199.24
MECH MECH Financial Inc. Hartford CT NE BIF NASDAQ 06/26/96 26.625 140.93
METF Metropolitan Financial Corp. Mayfield Heights OH MW SAIF NASDAQ NA 16.813 118.55
MFBC MFB Corp. Mishawaka IN MW SAIF NASDAQ 03/25/94 27.000 43.92
MFFC Milton Federal Financial Corp. West Milton OH MW SAIF NASDAQ 10/07/94 15.875 35.99
MFLR Mayflower Co-operative Bank Middleboro MA NE BIF NASDAQ 12/23/87 26.875 24.17
MIFC Mid-Iowa Financial Corp. Newton IA MW SAIF NASDAQ 10/14/92 12.625 21.59
MIVI Mississippi View Holding Co. Little Falls MN MW SAIF NASDAQ 03/24/95 18.375 13.60
MSBF MSB Financial Inc. Marshall MI MW SAIF NASDAQ 02/06/95 17.250 21.25
MWBI Midwest Bancshares Inc. Burlington IA MW SAIF NASDAQ 11/12/92 17.000 17.35
MWBX MetroWest Bank Framingham MA NE BIF NASDAQ 10/10/86 7.906 111.54
NASB North American Savings Bank Grandview MO MW SAIF NASDAQ 09/27/85 66.500 148.94
NBN Northeast Bancorp Auburn ME NE BIF AMSE 08/19/87 18.063 40.15
NEIB Northeast Indiana Bancorp Huntington IN MW SAIF NASDAQ 06/28/95 22.250 38.19
NHTB New Hampshire Thrift Bncshrs Newport NH NE SAIF NASDAQ 05/22/86 19.750 41.24
NMSB NewMil Bancorp Inc. New Milford CT NE BIF NASDAQ 02/01/86 13.375 51.88
NSLB NS&L Bancorp Inc. Neosho MO MW SAIF NASDAQ 06/08/95 17.375 12.26
NWEQ Northwest Equity Corp. Amery WI MW SAIF NASDAQ 10/11/94 22.250 18.66
OCFC Ocean Financial Corp. Toms River NJ MA SAIF NASDAQ 07/03/96 35.250 282.52
OFCP Ottawa Financial Corp. Holland MI MW SAIF NASDAQ 08/19/94 29.500 156.74
OHSL OHSL Financial Corp. Cincinnati OH MW SAIF NASDAQ 02/10/93 36.750 45.61
PBCI Pamrapo Bancorp Inc. Bayonne NJ MA SAIF NASDAQ 11/14/89 26.750 76.05
PBKB People's Bancshares Inc. New Bedford MA NE BIF NASDAQ 10/30/86 22.375 73.58
PCBC Perry County Financial Corp. Perryville MO MW SAIF NASDAQ 02/13/95 23.875 19.77
PDB Piedmont Bancorp Inc. Hillsborough NC SE SAIF AMSE 12/08/95 10.625 29.23
PEEK Peekskill Financial Corp. Peekskill NY MA SAIF NASDAQ 12/29/95 17.000 53.16
PERM Permanent Bancorp Inc. Evansville IN MW SAIF NASDAQ 04/04/94 29.500 62.17
PFDC Peoples Bancorp Auburn IN MW SAIF NASDAQ 07/07/87 22.250 75.24
PFED Park Bancorp Inc. Chicago IL MW SAIF NASDAQ 08/12/96 18.750 43.74
PFFB PFF Bancorp Inc. Pomona CA WE SAIF NASDAQ 03/29/96 19.375 347.89
PFFC Peoples Financial Corp. Massillon OH MW SAIF NASDAQ 09/13/96 16.500 23.37
PFNC Progress Financial Corp. Blue Bell PA MA SAIF NASDAQ 07/18/83 16.875 68.58
PFSB PennFed Financial Services Inc West Orange NJ MA SAIF NASDAQ 07/15/94 18.625 179.66
PFSL Pocahontas FS&LA (MHC) Pocahontas AR SE SAIF NASDAQ 04/05/94 44.188 72.13
PHBK Peoples Heritage Finl Group Portland ME NE BIF NASDAQ 12/04/86 46.563 1,291.53
PHFC Pittsburgh Home Financial Corp Pittsburgh PA MA SAIF NASDAQ 04/01/96 17.750 34.96
PRBC Prestige Bancorp Inc. Pleasant Hills PA MA SAIF NASDAQ 06/27/96 19.125 17.50
PTRS Potters Financial Corp. East Liverpool OH MW SAIF NASDAQ 12/31/93 19.000 18.33
PULS Pulse Bancorp South River NJ MA SAIF NASDAQ 09/18/86 26.250 81.17
PVFC PVF Capital Corp. Bedford Heights OH MW SAIF NASDAQ 12/30/92 23.000 61.16
PVSA Parkvale Financial Corp. Monroeville PA MA SAIF NASDAQ 07/16/87 31.750 162.83
PWBC PennFirst Bancorp Inc. Ellwood City PA MA SAIF NASDAQ 06/13/90 19.125 101.57
PWBK Pennwood Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 07/15/96 22.000 12.11
QCBC Quaker City Bancorp Inc. Whittier CA WE SAIF NASDAQ 12/30/93 20.000 93.16
QCFB QCF Bancorp Inc. Virginia MN MW SAIF NASDAQ 04/03/95 27.250 37.65
QCSB Queens County Bancorp Inc. Flushing NY MA BIF NASDAQ 11/23/93 39.750 592.78
RARB Raritan Bancorp Inc. Bridgewater NJ MA BIF NASDAQ 03/01/87 26.500 62.86
RELY Reliance Bancorp Inc. Garden City NY MA SAIF NASDAQ 03/31/94 35.500 342.01
ROSE TR Financial Corp. Garden City NY MA BIF NASDAQ 06/29/93 32.969 580.19
SCBS Southern Community Bancshares Cullman AL SE SAIF NASDAQ 12/23/96 18.000 20.47
SCCB S. Carolina Community Bancshrs Winnsboro SC SE SAIF NASDAQ 07/07/94 21.500 12.54
SFED SFS Bancorp Inc. Schenectady NY MA SAIF NASDAQ 06/30/95 21.500 25.98
SFFC StateFed Financial Corp. Des Moines IA MW SAIF NASDAQ 01/05/94 14.250 22.22
SFIN Statewide Financial Corp. Jersey City NJ MA SAIF NASDAQ 10/02/95 22.750 102.58
Source: SNL & F&C calculations 4
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
Deposit Current Current
Insurance Stock Market
Agency Price Value
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($) ($M)
SFSL Security First Corp. Mayfield Heights OH MW SAIF NASDAQ 01/22/88 22.000 165.62
SISB SIS Bancorp Inc. Springfield MA NE BIF NASDAQ 02/08/95 37.625 261.41
SKAN Skaneateles Bancorp Inc. Skaneateles NY MA BIF NASDAQ 06/02/86 19.125 27.48
SMBC Southern Missouri Bancorp Inc. Poplar Bluff MO MW SAIF NASDAQ 04/13/94 22.250 35.52
SOBI Sobieski Bancorp Inc. South Bend IN MW SAIF NASDAQ 03/31/95 20.500 16.07
SOPN First Savings Bancorp Inc. Southern Pines NC SE SAIF NASDAQ 01/06/94 23.625 87.53
SPBC St. Paul Bancorp Inc. Chicago IL MW SAIF NASDAQ 05/18/87 26.500 906.42
SSB Scotland Bancorp Inc. Laurinburg NC SE SAIF AMSE 04/01/96 10.125 19.38
SSFC South Street Financial Corp. Albemarle NC SE SAIF NASDAQ 10/03/96 13.000 60.79
SSM Stone Street Bancorp Inc. Mocksville NC SE SAIF AMSE 04/01/96 20.438 38.79
STFR St. Francis Capital Corp. Brookfield WI MW SAIF NASDAQ 06/21/93 43.500 228.43
STSA Sterling Financial Corp. Spokane WA WE SAIF NASDAQ NA 24.125 182.62
SVRN Sovereign Bancorp Inc. Wyomissing PA MA SAIF NASDAQ 08/12/86 19.375 1,810.48
SZB SouthFirst Bancshares Inc. Sylacauga AL SE SAIF AMSE 02/14/95 22.250 21.71
THR Three Rivers Financial Corp. Three Rivers MI MW SAIF AMSE 08/24/95 23.500 19.38
THRD TF Financial Corp. Newtown PA MA SAIF NASDAQ 07/13/94 26.000 82.87
TPNZ Tappan Zee Financial Inc. Tarrytown NY MA SAIF NASDAQ 10/05/95 18.750 27.71
TRIC Tri-County Bancorp Inc. Torrington WY WE SAIF NASDAQ 09/30/93 14.000 16.34
TSH Teche Holding Co. Franklin LA SW SAIF AMSE 04/19/95 21.125 72.62
TWIN Twin City Bancorp Bristol TN SE SAIF NASDAQ 01/04/95 14.500 18.45
UBMT United Financial Corp. Great Falls MT WE SAIF NASDAQ 09/23/86 27.000 33.03
VABF Virginia Beach Fed. Financial Virginia Beach VA SE SAIF NASDAQ 11/01/80 18.000 89.65
WAMU Washington Mutual Inc. Seattle WA WE BIF NASDAQ 03/11/83 67.125 17,288.72
WBST Webster Financial Corp. Waterbury CT NE SAIF NASDAQ 12/12/86 64.250 877.22
WCBI Westco Bancorp Westchester IL MW SAIF NASDAQ 06/26/92 29.000 71.47
WCFB Webster City Federal SB (MHC) Webster City IA MW SAIF NASDAQ 08/15/94 20.500 43.24
WEFC Wells Financial Corp. Wells MN MW SAIF NASDAQ 04/11/95 18.875 36.98
WEHO Westwood Homestead Fin. Corp. Cincinnati OH MW SAIF NASDAQ 09/30/96 14.750 41.94
WFI Winton Financial Corp. Cincinnati OH MW SAIF AMSE 08/04/88 26.875 53.94
WFSL Washington Federal Inc. Seattle WA WE SAIF NASDAQ 11/17/82 27.625 1,444.40
WHGB WHG Bancshares Corp. Lutherville MD MA SAIF NASDAQ 04/01/96 18.500 25.70
WOFC Western Ohio Financial Corp. Springfield OH MW SAIF NASDAQ 07/29/94 26.750 64.99
WRNB Warren Bancorp Inc. Peabody MA NE BIF NASDAQ 07/09/86 23.000 87.54
WSB Washington Savings Bank, FSB Bowie MD MA SAIF AMSE NA 8.750 38.46
WSFS WSFS Financial Corp. Wilmington DE MA BIF NASDAQ 11/26/86 20.750 258.54
WSTR WesterFed Financial Corp. Missoula MT WE SAIF NASDAQ 01/10/94 26.000 145.13
WVFC WVS Financial Corp. Pittsburgh PA MA SAIF NASDAQ 11/29/93 38.000 68.71
WYNE Wayne Bancorp Inc. Wayne NJ MA SAIF NASDAQ 06/27/96 24.500 49.34
YFCB Yonkers Financial Corp. Yonkers NY MA SAIF NASDAQ 04/18/96 18.688 56.45
YFED York Financial Corp. York PA MA SAIF NASDAQ 02/01/84 25.500 225.72
Maximum 93.750 17,288.72
Minimum 7.906 7.05
Average 25.861 293.65
Median 22.250 65.62
Source: SNL & F&C calculations 5
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
Tangible
Price/ Current Current Current Total Equity/ Equity/ Core Core Core
LTM Price/ Price/ T Price/ Dividend Assets Assets T Assets EPS ROAA ROAE Merger Current
Core EPS Book V Book V Assets Yield ($000) (%) (%) ($) (%) (%) Target? Pricing
Ticker (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM LTM (Y/N) Date
AABC 9.7 144.8 144.8 12.5 -- 105,639 8.7 8.7 1.12 1.34 20.89 N 02/27/98
ABBK 21.7 210.2 231.0 14.4 0.95 531,986 6.8 6.3 0.97 0.77 11.15 N 02/27/98
ABCL 19.8 168.5 170.5 16.2 1.60 1,363,825 9.6 9.5 1.39 0.85 9.25 N 02/27/98
ABCW 22.5 301.8 306.7 20.1 0.74 1,941,180 6.7 6.5 1.91 0.96 14.70 N 02/27/98
AFED 21.1 120.0 120.0 16.9 1.43 160,408 12.5 12.5 0.93 0.79 5.91 N 02/27/98
AHM 19.8 303.5 355.6 12.5 1.41 46,678,752 5.1 4.6 3.16 0.77 15.24 N 02/27/98
ALBC 25.0 133.0 133.0 11.4 0.99 70,810 8.6 8.6 0.43 0.49 5.46 N 02/27/98
ALBK 15.5 174.5 224.7 15.4 1.48 4,083,097 8.8 7.0 3.14 1.18 12.92 N 02/27/98
AMFC 24.1 111.7 111.7 16.5 1.64 100,003 14.8 14.8 0.71 0.71 4.39 N 02/27/98
ANA 21.3 128.6 128.6 21.8 1.99 274,018 17.0 17.0 1.04 0.95 5.44 N 02/27/98
ANDB 16.3 192.5 192.5 15.6 1.91 1,322,745 8.1 8.1 2.44 1.04 12.97 N 02/27/98
ANE 23.4 173.0 177.9 13.2 1.01 247,129 7.6 7.4 0.85 0.59 8.48 N 02/27/98
ASBI 20.1 150.4 150.5 16.9 3.12 393,028 11.2 11.2 1.02 0.83 7.60 N 02/27/98
ASBP 21.5 129.8 129.8 20.1 2.91 113,176 15.5 15.5 0.64 0.92 5.87 N 02/27/98
ASFC 19.7 172.4 247.7 13.9 1.43 10,528,393 8.5 6.2 2.83 0.77 9.55 N 02/27/98
BANC 26.5 167.9 192.3 11.4 0.98 3,064,480 6.8 6.0 0.51 0.53 9.11 N 02/27/98
BDJI 24.1 171.4 171.4 17.4 -- 118,838 10.2 10.2 0.86 0.66 6.05 N 02/27/98
BFD 19.9 140.7 146.0 12.5 1.27 974,680 8.4 8.1 1.11 0.67 7.37 N 02/27/98
BFSB 20.1 155.9 155.9 23.8 1.97 136,908 14.5 14.5 1.42 1.19 8.34 N 02/27/98
BKC 17.1 202.5 209.4 18.3 3.03 639,013 9.0 8.8 2.94 1.15 13.74 N 02/27/98
BKCT 19.3 200.7 200.7 21.3 2.81 443,025 10.6 10.6 0.96 1.24 12.02 N 02/27/98
BKUNA 34.2 160.9 181.1 6.9 -- 3,028,776 4.8 4.4 0.43 0.37 6.20 N 02/27/98
BNKU 21.6 243.0 249.3 11.9 1.36 12,523,459 4.9 4.8 2.18 0.61 11.99 N 02/27/98
BPLS 20.2 157.6 173.1 6.9 -- 4,167,806 4.4 4.0 0.73 0.38 7.06 N 02/27/98
BVCC 24.0 241.7 291.0 12.9 1.15 3,246,476 5.4 4.5 1.45 0.61 10.00 N 02/27/98
BYFC 29.7 86.3 86.3 8.5 1.57 124,740 10.6 10.6 0.43 0.31 2.75 N 02/27/98
CAFI 18.3 166.7 179.7 15.7 2.13 520,582 9.4 8.8 1.39 0.94 9.78 N 02/27/98
CASB 21.0 179.6 179.6 12.5 -- 422,530 6.9 6.9 0.74 0.64 9.80 N 02/27/98
CASH 18.8 139.6 156.5 15.1 2.10 407,592 10.8 9.8 1.22 0.90 7.97 N 02/27/98
CATB 21.6 118.7 118.7 28.9 1.74 294,656 24.3 24.3 0.85 1.34 5.19 N 02/27/98
CBCI 16.3 144.3 144.3 24.2 -- 486,626 16.8 16.8 2.30 1.62 10.26 N 02/27/98
CBES 24.8 149.3 149.3 23.5 1.57 111,127 15.8 15.8 1.03 0.97 5.52 N 02/27/98
CBSA 14.0 151.5 178.2 5.4 1.53 2,911,410 3.6 3.1 2.24 0.40 11.61 N 02/27/98
CEBK 24.4 174.4 192.9 17.1 1.00 367,096 9.8 9.0 1.31 0.75 7.43 N 02/27/98
CENB 21.6 123.8 123.8 37.3 2.13 102,281 30.2 30.2 4.34 1.63 5.91 N 02/27/98
CFB 17.3 251.6 279.0 16.0 0.62 7,189,342 6.4 5.8 2.04 0.95 15.76 N 02/27/98
CFCP 20.7 301.7 301.7 18.0 1.66 563,866 6.0 6.0 1.05 1.04 16.59 N 02/27/98
CFFC 20.5 161.9 161.9 21.4 1.82 183,278 13.2 13.2 1.50 1.13 8.22 N 02/27/98
CFNC 24.3 126.2 126.2 28.7 1.35 114,660 22.7 22.7 0.73 1.17 5.06 N 02/27/98
CFSB 23.6 332.2 332.2 26.3 1.63 852,888 7.9 7.9 1.25 1.18 15.27 N 02/27/98
CFTP 29.2 126.9 126.9 37.8 1.71 228,656 26.5 26.5 0.64 1.33 4.54 N 02/27/98
CIBI 16.3 140.1 140.1 16.2 1.86 95,876 11.6 11.6 1.06 0.97 8.33 N 02/27/98
CKFB 20.1 113.8 113.8 26.9 2.56 62,865 21.9 21.9 0.97 1.37 5.84 N 02/27/98
CLAS 27.0 122.7 143.9 18.5 1.48 132,793 15.1 13.1 0.70 0.64 4.31 N 02/27/98
CMRN 20.8 113.3 113.3 24.3 1.40 211,253 21.4 21.4 0.96 1.16 5.26 N 02/27/98
CMSB 29.1 154.1 195.2 14.6 1.37 2,268,595 9.5 7.6 0.70 0.50 5.17 N 02/27/98
CNIT 22.1 229.8 250.9 16.8 1.68 701,708 7.0 6.4 3.22 0.78 10.96 N 02/27/98
COFI 19.1 281.1 300.9 19.6 1.65 19,760,265 7.0 6.5 3.18 1.10 15.66 N 02/27/98
COOP 29.4 213.6 213.6 16.4 -- 369,121 7.7 7.7 0.69 0.60 7.76 N 02/27/98
CRZY 20.9 109.7 109.7 25.9 2.42 60,774 23.6 23.6 0.79 1.30 5.11 N 02/27/98
CVAL 23.4 239.8 239.8 21.1 1.39 325,643 8.8 8.8 1.36 0.95 11.04 N 02/27/98
DCBI 25.0 163.5 163.5 43.8 0.99 107,747 26.8 26.8 0.97 1.70 6.10 N 02/27/98
DIBK 10.0 203.6 209.0 16.8 1.54 958,503 8.3 8.1 3.14 1.92 24.02 N 02/27/98
DIME 28.2 167.8 194.2 21.0 1.27 1,488,074 12.5 11.0 0.89 0.86 5.86 N 02/27/98
DME 27.2 269.9 329.0 16.2 0.53 21,848,000 6.0 5.0 1.12 0.60 11.05 N 02/27/98
DNFC 19.2 243.5 245.8 13.2 0.69 1,815,315 5.4 5.4 1.37 0.79 14.13 N 02/27/98
DSL 17.9 181.9 NA 13.4 1.09 5,835,825 7.4 NA 1.63 0.76 10.64 N 02/27/98
Source: SNL & F&C calculations 6
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
Tangible
Price/ Current Current Current Total Equity/ Equity/ Core Core Core
LTM Price/ Price/ T Price/ Dividend Assets Assets T Assets EPS ROAA ROAE Merger Current
Core EPS Book V Book V Assets Yield ($000) (%) (%) ($) (%) (%) Target? Pricing
Ticker (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM LTM (Y/N) Date
EBSI 18.8 159.7 159.7 12.6 2.93 934,458 7.8 7.8 1.09 0.77 9.06 N 02/27/98
EFBI 33.4 204.6 204.8 22.0 3.00 301,261 10.8 10.8 1.00 0.75 6.28 N 02/27/98
EMLD 19.8 231.4 234.6 18.6 1.27 603,965 8.0 7.9 1.12 0.98 12.77 N 02/27/98
EQSB 17.1 221.5 221.5 11.5 -- 321,687 5.2 5.2 1.78 0.74 14.65 N 02/27/98
ESBK 27.5 143.9 147.8 9.4 2.22 228,268 6.4 6.2 1.05 0.34 5.40 N 02/27/98
ETFS 31.1 106.4 106.4 18.6 0.92 120,093 17.5 17.5 0.70 0.59 3.23 N 02/27/98
FBBC 15.6 167.3 167.3 18.1 2.13 675,684 10.8 10.8 1.20 1.06 10.03 N 02/27/98
FBCI 22.7 134.5 134.7 14.1 1.63 489,673 10.5 10.5 1.08 0.61 5.92 N 02/27/98
FBCV 21.3 119.2 121.3 10.7 1.06 255,927 9.0 8.8 1.18 0.49 5.85 N 02/27/98
FBER 27.1 145.5 145.5 19.9 1.01 284,739 13.7 13.7 0.73 0.77 4.94 N 02/27/98
FBHC 30.3 170.0 181.4 11.5 1.92 302,728 6.8 6.4 0.69 0.47 7.53 N 02/27/98
FBSI 20.5 159.8 159.8 23.0 0.59 161,527 14.4 14.4 0.83 1.12 8.06 N 02/27/98
FCBF 21.9 164.7 164.7 23.2 2.56 519,911 14.1 14.1 1.43 1.15 7.69 N 02/27/98
FCME 3.4 137.2 137.2 13.4 -- 148,571 9.8 9.8 4.31 3.97 44.97 N 02/27/98
FDEF 25.4 121.7 121.7 22.4 2.36 579,698 18.4 18.4 0.60 0.94 4.57 N 02/27/98
FED 19.1 191.9 193.6 10.3 -- 4,160,115 5.4 5.3 2.11 0.55 11.05 N 02/27/98
FESX 21.1 195.6 222.5 14.9 2.37 1,197,459 7.6 6.8 1.12 0.73 10.03 N 02/27/98
FFBA 21.8 202.8 207.0 27.3 2.06 1,555,274 13.5 13.2 1.16 1.24 9.43 N 02/27/98
FFBH 22.6 156.3 156.3 23.3 1.08 547,119 14.9 14.9 1.15 1.01 6.51 N 02/27/98
FFBI 25.6 128.5 128.5 11.5 -- 84,242 8.9 8.9 0.91 0.42 5.18 N 02/27/98
FFBZ 21.9 251.6 251.9 17.4 1.22 208,840 7.6 7.6 1.05 0.92 12.01 N 02/27/98
FFCH 24.2 307.4 307.4 19.8 1.60 1,793,325 6.4 6.4 2.17 0.86 13.90 N 02/27/98
FFDB 17.4 160.0 174.3 15.5 2.08 178,792 9.7 9.0 1.38 0.96 9.89 N 02/27/98
FFDF 33.5 121.9 121.9 29.3 1.60 92,364 24.1 24.1 0.56 0.88 3.60 N 02/27/98
FFED 16.0 194.2 194.2 14.1 4.10 215,821 7.3 7.3 0.61 0.68 11.84 N 02/27/98
FFES 17.3 155.5 155.5 10.6 1.77 982,747 6.8 6.8 2.23 0.63 9.71 N 02/27/98
FFFD 18.1 136.1 136.1 30.9 1.52 221,954 22.7 22.7 1.16 1.78 7.61 N 02/27/98
FFHH 18.3 123.2 123.2 15.1 2.48 402,850 10.9 10.9 1.10 0.82 7.15 N 02/27/98
FFHS 22.3 154.4 155.3 13.9 1.48 231,189 9.0 9.0 1.21 0.65 7.31 N 02/27/98
FFIC 22.6 147.0 153.0 18.4 1.26 1,088,476 12.5 12.1 1.13 0.88 6.08 N 02/27/98
FFKY 15.1 171.7 181.7 23.5 2.55 388,329 13.7 13.0 1.46 1.61 11.79 N 02/27/98
FFLC 21.3 141.0 141.0 18.1 1.86 400,237 12.9 12.9 0.91 0.95 6.79 N 02/27/98
FFOH 21.2 156.7 177.7 18.8 1.56 535,100 12.0 10.7 0.85 0.90 6.93 N 02/27/98
FFPB 26.7 165.0 168.8 10.5 1.85 1,821,077 6.4 6.2 1.42 0.44 6.61 N 02/27/98
FFSL 20.5 123.9 123.9 12.4 2.03 113,669 10.0 10.0 0.72 0.65 6.26 N 02/27/98
FFSX 27.1 217.1 218.7 19.2 1.54 458,940 8.9 8.8 1.15 0.71 8.40 N 02/27/98
FFWC 14.9 145.8 159.9 14.0 1.95 191,298 9.6 8.8 1.24 1.01 10.28 N 02/27/98
FFWD 29.0 273.6 273.6 35.0 1.55 166,546 12.8 12.8 0.76 1.29 10.30 N 02/27/98
FFYF 17.8 166.8 166.8 22.7 2.34 614,749 13.6 13.6 1.93 1.27 9.23 N 02/27/98
FGHC 22.2 220.8 238.1 18.4 4.00 166,386 8.3 7.8 0.45 0.94 11.32 N 02/27/98
FIBC 15.5 161.5 162.2 14.4 1.92 308,248 8.9 8.9 1.68 0.99 10.50 N 02/27/98
FISB 26.6 242.1 245.0 23.0 1.64 1,613,405 9.5 9.4 1.10 0.95 9.87 N 02/27/98
FKFS 16.5 168.6 168.6 11.2 1.14 378,527 6.6 6.6 1.06 0.73 10.47 N 02/27/98
FKKY 27.1 116.7 116.7 19.8 4.92 132,809 17.0 17.0 0.60 0.72 3.42 N 02/27/98
FLAG 25.8 193.5 193.5 17.6 1.65 238,463 9.1 9.1 0.80 0.72 7.98 N 02/27/98
FLFC 23.9 241.2 265.4 18.3 1.46 1,275,398 7.6 7.0 1.26 0.79 10.53 N 02/27/98
FLGS 12.9 254.5 264.9 15.2 1.06 2,033,260 6.0 5.8 1.75 1.43 22.94 N 02/27/98
FLKY 27.5 103.5 103.5 30.5 3.31 47,184 29.5 29.5 0.55 1.24 3.64 N 02/27/98
FMCO 15.4 221.5 224.8 14.4 0.80 581,660 6.5 6.4 2.27 1.02 15.74 N 02/27/98
FMSB 17.5 247.3 247.3 17.0 1.09 445,762 6.9 6.9 1.05 1.03 15.27 N 02/27/98
FNGB 20.6 155.7 155.7 17.2 2.77 667,696 11.1 11.1 0.63 0.90 7.98 N 02/27/98
FSBI 17.2 167.8 167.8 11.5 1.25 393,076 6.8 6.8 1.68 0.76 11.16 N 02/27/98
FSTC 17.0 248.8 311.3 25.1 1.00 352,233 10.1 8.2 1.88 1.70 17.58 N 02/27/98
FTF 16.2 182.0 182.0 27.6 1.98 180,259 15.2 15.2 1.74 1.71 10.91 N 02/27/98
FTFC 22.8 267.9 283.1 19.0 1.51 1,544,294 7.1 6.7 1.40 0.89 13.57 N 02/27/98
FTSB 18.9 144.7 144.7 22.9 1.61 99,873 15.8 15.8 0.82 1.23 7.53 N 02/27/98
FWWB 20.4 158.2 170.8 22.8 1.41 1,136,693 13.4 12.5 1.25 1.15 8.00 N 02/27/98
Source: SNL & F&C calculations
7
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
Tangible
Price/ Current Current Current Total Equity/ Equity/ Core Core Core
LTM Price/ Price/ T Price/ Dividend Assets Assets T Assets EPS ROAA ROAE Merger Current
Core EPS Book V Book V Assets Yield ($000) (%) (%) ($) (%) (%) Target? Pricing
Ticker (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM LTM (Y/N) Date
GAF 18.0 130.4 131.6 19.3 2.45 783,948 14.8 14.7 1.09 1.08 6.80 N 02/27/98
GDW 14.8 188.8 188.8 12.9 0.56 39,590,271 6.8 6.8 6.04 0.90 13.93 N 02/27/98
GFCO 19.7 165.2 166.9 15.4 1.95 304,621 9.3 9.2 1.04 0.83 8.78 N 02/27/98
GPT 20.6 218.4 400.5 24.0 1.72 13,083,518 9.7 5.5 3.60 1.08 10.64 N 02/27/98
GSBC 16.9 313.7 316.4 27.4 1.73 750,458 8.7 8.7 1.51 1.75 20.23 N 02/27/98
GSFC 27.0 124.8 124.8 44.0 2.40 179,700 35.2 35.2 0.68 1.60 4.48 N 02/27/98
GUPB 18.7 113.8 113.8 14.2 1.96 114,745 12.5 12.5 1.09 0.89 6.09 N 02/27/98
HALL 17.2 148.8 148.8 11.4 -- 413,511 7.6 7.6 0.93 0.65 9.09 N 02/27/98
HARB 25.6 348.3 359.0 31.1 1.99 1,128,942 8.9 8.7 2.75 1.24 14.73 N 02/27/98
HARL 14.9 210.8 210.8 14.4 1.47 347,882 6.8 6.8 2.01 1.02 15.66 N 02/27/98
HAVN 19.6 190.7 191.3 10.9 1.22 1,974,890 5.7 5.7 1.25 0.63 10.51 N 02/27/98
HBBI 20.8 109.8 109.8 16.6 1.33 42,430 14.1 14.1 1.09 0.72 5.48 N 02/27/98
HBFW 27.1 183.7 183.7 22.3 0.61 350,038 12.2 12.2 1.21 0.86 6.48 N 02/27/98
HBNK 17.9 199.7 199.7 15.1 -- 549,638 7.6 7.6 2.00 0.93 12.51 N 02/27/98
HBS 14.0 126.2 130.7 17.9 2.74 152,796 14.2 13.8 1.56 1.37 9.41 N 02/27/98
HFFB 21.1 105.3 105.3 30.4 2.40 108,908 26.7 26.7 0.79 1.36 5.06 N 02/27/98
HFFC 15.8 155.1 155.1 14.9 1.45 580,668 9.6 9.6 1.84 1.00 10.68 N 02/27/98
HFNC 25.7 141.1 141.1 25.7 2.35 910,786 18.2 18.2 0.53 0.94 4.61 N 02/27/98
HFSA 20.4 118.0 118.0 13.4 2.56 115,434 11.3 11.3 0.92 0.69 5.56 N 02/27/98
HHFC 22.7 129.1 129.1 14.4 2.93 93,141 11.1 11.1 0.66 0.67 5.68 N 02/27/98
HIFS 16.5 201.2 201.2 19.3 1.46 222,584 9.6 9.6 2.00 1.26 13.00 N 02/27/98
HMNF 25.7 142.3 153.3 17.4 -- 691,232 12.2 11.5 1.13 0.78 5.43 N 02/27/98
HOMF 20.2 258.0 265.4 22.7 1.27 709,412 8.8 8.6 1.56 1.22 14.31 N 02/27/98
HPBC 15.1 222.3 222.3 23.4 3.02 208,815 10.5 10.5 1.75 1.64 15.43 N 02/27/98
HRBF 25.3 139.4 139.4 17.4 2.00 233,572 12.5 12.5 0.95 0.72 5.55 N 02/27/98
HRZB 16.3 157.1 157.1 25.0 2.46 532,767 15.9 15.9 1.10 1.55 9.90 N 02/27/98
HTHR 15.8 141.0 141.0 6.8 -- 891,163 6.2 6.2 1.25 1.04 18.87 N 02/27/98
HWEN 31.0 113.2 113.2 19.2 1.11 43,504 17.0 17.0 0.29 0.60 3.36 N 02/27/98
HZFS 21.6 137.1 137.1 13.9 1.24 88,769 10.2 10.2 0.67 0.68 6.70 N 02/27/98
IBSF 32.9 150.4 150.4 26.7 2.25 728,181 17.7 17.7 0.54 0.79 4.36 N 02/27/98
INBI 18.0 155.1 155.1 25.9 3.03 364,023 16.7 16.7 1.03 1.48 8.38 N 02/27/98
IPSW 19.8 287.3 287.3 15.0 1.12 227,244 5.2 5.2 0.72 0.97 16.95 N 02/27/98
ITLA 12.9 160.0 NA 15.6 -- 1,015,909 9.8 NA 1.57 1.37 13.26 N 02/27/98
IWBK 19.0 250.0 254.3 16.8 1.74 1,982,317 6.7 6.6 2.18 0.95 14.38 N 02/27/98
JSB 21.1 149.9 149.9 34.8 2.97 1,531,068 23.2 23.2 2.55 1.72 7.67 N 02/27/98
JSBA 25.7 219.7 280.1 21.5 1.04 1,257,753 9.0 7.2 1.05 0.76 9.32 N 02/27/98
JXVL 15.1 145.5 145.5 21.3 2.44 235,405 14.6 14.6 1.36 1.49 9.90 N 02/27/98
KFBI 24.2 141.3 154.6 23.1 1.42 975,207 15.1 14.0 0.93 1.07 6.11 N 02/27/98
KNK 17.3 122.9 130.3 13.5 1.42 343,409 11.0 10.5 1.96 0.86 7.88 N 02/27/98
KSBK 15.3 206.3 216.1 15.6 0.52 152,752 7.6 7.3 1.26 1.05 14.06 N 02/27/98
KYF 18.0 122.6 122.6 20.9 3.60 86,307 17.0 17.0 0.77 1.11 6.70 N 02/27/98
LARK 17.5 112.9 112.9 15.9 1.82 233,640 14.1 14.1 1.26 0.98 6.94 N 02/27/98
LARL 17.3 212.2 212.2 22.4 1.58 213,379 10.6 10.6 1.27 1.40 13.48 N 02/27/98
LFBI 33.3 137.7 149.3 16.1 1.00 324,425 11.7 10.9 0.60 0.51 3.93 N 02/27/98
LFCO 6.2 191.2 191.2 25.6 -- 409,357 13.4 13.4 2.60 3.77 32.59 N 02/27/98
LFED 32.8 231.3 231.3 38.5 2.59 291,408 16.6 16.6 0.66 1.21 7.36 N 02/27/98
LISB 33.6 259.5 261.9 23.8 1.00 6,072,524 9.2 9.1 1.79 0.71 7.82 N 02/27/98
LOGN 16.4 123.9 123.9 23.8 2.46 86,115 19.2 19.2 0.99 1.53 7.81 N 02/27/98
LONF 18.6 145.4 145.4 20.0 1.61 37,916 13.8 13.8 0.80 1.00 5.21 N 02/27/98
LSBI 17.8 136.9 136.9 12.5 1.42 206,584 8.6 8.6 1.59 0.72 8.16 N 02/27/98
LSBX 9.4 192.4 192.4 20.1 -- 359,855 10.5 10.5 1.80 2.29 25.38 N 02/27/98
LVSB 29.4 194.7 230.2 20.8 0.48 517,974 10.7 9.2 0.88 0.89 8.44 N 02/27/98
LXMO 23.6 111.6 111.6 29.7 1.82 58,783 26.6 26.6 0.70 1.23 4.21 N 02/27/98
MAFB 15.9 212.3 240.9 16.2 0.75 3,457,664 7.6 6.8 2.35 1.13 14.48 N 02/27/98
MARN 17.8 120.6 123.3 25.1 3.26 191,854 20.8 20.4 1.52 1.58 7.09 N 02/27/98
MASB 19.3 169.9 172.4 19.1 2.03 925,403 11.2 11.1 2.56 1.03 9.73 N 02/27/98
MBB 31.1 155.7 292.1 12.8 1.72 773,991 9.8 6.2 1.12 0.54 6.17 N 02/27/98
Source: SNL & F&C calculations
8
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
Tangible
Price/ Current Current Current Total Equity/ Equity/ Core Core Core
LTM Price/ Price/ T Price/ Dividend Assets Assets T Assets EPS ROAA ROAE Merger Current
Core EPS Book V Book V Assets Yield ($000) (%) (%) ($) (%) (%) Target? Pricing
Ticker (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM LTM (Y/N) Date
MBLF 20.8 126.0 126.0 16.0 1.42 223,558 12.7 12.7 1.35 0.82 6.41 N 02/27/98
MBSP 28.3 109.3 109.3 43.8 2.35 36,103 40.1 40.1 0.60 1.51 3.62 N 02/27/98
MCBN 20.8 173.6 173.6 14.5 1.36 62,632 8.3 8.3 1.84 0.71 8.34 N 02/27/98
MDBK 19.1 196.3 208.6 17.6 1.82 1,135,572 8.9 8.5 2.30 1.01 11.38 N 02/27/98
MECH 10.8 159.2 159.2 15.8 -- 892,371 9.9 9.9 2.46 1.57 15.80 N 02/27/98
METF 21.8 323.3 351.7 12.8 -- 924,985 4.0 3.7 0.77 0.65 16.43 N 02/27/98
MFBC 22.9 131.0 131.0 16.6 1.26 264,097 12.7 12.7 1.18 0.82 5.99 N 02/27/98
MFFC 28.4 130.0 130.0 16.5 3.78 218,826 11.8 11.8 0.56 0.62 4.67 N 02/27/98
MFLR 19.1 187.8 190.7 18.3 2.98 131,908 9.8 9.6 1.41 1.00 10.40 N 02/27/98
MIFC 15.8 170.4 170.6 16.0 0.63 135,345 9.4 9.4 0.80 1.10 11.83 N 02/27/98
MIVI 19.6 109.1 109.1 19.8 1.74 68,619 18.2 18.2 0.94 1.06 6.27 N 02/27/98
MSBF 20.5 163.4 163.4 27.5 1.74 77,444 16.9 16.9 0.84 1.40 8.16 N 02/27/98
MWBI 16.8 162.5 162.5 11.8 1.41 147,724 7.2 7.2 1.01 0.77 11.14 N 02/27/98
MWBX 14.9 249.4 249.4 18.3 1.52 608,941 7.4 7.4 0.53 1.32 17.83 N 02/27/98
NASB 15.2 239.0 246.1 20.3 1.50 734,091 8.5 8.3 4.39 1.36 17.29 N 02/27/98
NBN 28.7 189.9 215.0 13.2 1.17 265,442 7.7 7.0 0.63 0.61 7.89 N 02/27/98
NEIB 18.4 143.5 143.5 20.6 1.53 190,319 14.4 14.4 1.21 1.20 7.78 N 02/27/98
NHTB 25.3 164.0 191.0 12.8 3.04 319,338 7.8 6.8 0.78 0.59 7.89 N 02/27/98
NMSB 20.3 156.6 156.6 14.6 2.39 355,526 9.3 9.3 0.66 0.87 8.55 N 02/27/98
NSLB 27.2 104.6 105.4 20.7 2.88 59,817 19.8 19.7 0.64 0.74 3.63 N 02/27/98
NWEQ 17.1 150.1 150.1 18.7 2.70 99,558 11.6 11.6 1.30 1.02 8.78 N 02/27/98
OCFC 21.5 127.6 127.6 19.4 2.27 1,489,220 15.2 15.2 1.64 1.00 5.71 N 02/27/98
OFCP 23.2 205.3 252.4 17.7 1.36 885,817 8.6 7.1 1.27 0.83 9.47 N 02/27/98
OHSL 23.6 170.1 170.1 19.1 2.40 238,905 10.9 10.9 1.56 0.84 7.55 N 02/27/98
PBCI 16.1 156.7 157.7 20.2 4.19 376,714 12.9 12.8 1.66 1.31 9.87 N 02/27/98
PBKB 32.0 244.3 254.0 9.7 2.15 762,910 4.0 3.8 0.70 0.40 7.94 N 02/27/98
PCBC 20.6 120.8 120.8 23.3 1.68 85,030 19.2 19.2 1.16 1.08 5.72 N 02/27/98
PDB 19.0 138.7 138.7 22.5 3.77 130,167 16.2 16.2 0.56 1.22 7.26 N 02/27/98
PEEK 25.4 114.3 114.3 28.9 2.12 184,215 25.2 25.2 0.67 1.09 4.23 N 02/27/98
PERM 24.6 142.7 144.4 14.8 1.49 419,819 10.0 9.9 1.20 0.61 6.49 N 02/27/98
PFDC 17.8 167.9 167.9 25.6 1.98 294,291 15.3 15.3 1.25 1.49 9.78 N 02/27/98
PFED 28.9 113.3 113.3 24.7 -- 176,957 21.8 21.8 0.65 0.85 3.75 N 02/27/98
PFFB 25.2 129.6 130.9 12.6 -- 2,765,855 9.7 9.6 0.77 0.52 5.02 N 02/27/98
PFFC 33.7 150.3 150.3 28.4 3.03 82,464 18.9 18.9 0.49 0.78 3.22 N 02/27/98
PFNC 24.5 273.1 325.1 13.9 0.71 493,406 5.1 4.3 0.69 0.70 13.37 N 02/27/98
PFSB 16.6 161.7 188.7 12.2 0.75 1,475,509 7.0 6.0 1.12 0.81 10.98 N 02/27/98
PFSL 31.1 291.5 291.5 18.5 2.04 389,405 6.4 6.4 1.42 0.62 9.72 N 02/27/98
PHBK 18.3 271.8 361.8 19.0 1.89 6,795,337 7.0 5.4 2.54 1.25 16.13 N 02/27/98
PHFC 17.9 141.8 143.5 11.7 1.35 299,669 8.2 8.1 0.99 0.71 6.51 N 02/27/98
PRBC 21.3 112.0 112.0 12.2 1.05 143,263 10.9 10.9 0.90 0.57 5.03 N 02/27/98
PTRS 16.5 169.5 169.5 14.9 1.05 122,716 8.8 8.8 1.15 0.96 10.72 N 02/27/98
PULS 14.8 183.4 183.4 15.0 3.05 539,322 8.2 8.2 1.77 1.08 13.56 N 02/27/98
PVFC 13.3 212.0 212.0 15.4 -- 396,214 7.3 7.3 1.73 1.29 18.16 N 02/27/98
PVSA 15.7 201.1 202.2 15.9 1.64 1,019,143 7.9 7.9 2.02 1.07 14.71 N 02/27/98
PWBC 18.4 147.6 166.0 12.4 1.88 822,350 8.4 7.5 1.04 0.66 8.61 N 02/27/98
PWBK 25.6 131.3 131.3 25.7 1.64 47,211 18.0 18.0 0.86 0.98 5.28 N 02/27/98
QCBC 16.1 127.2 127.2 11.0 -- 852,154 8.6 8.6 1.24 0.70 8.08 N 02/27/98
QCFB 13.4 140.4 140.4 24.7 -- 152,668 17.6 17.6 2.04 1.62 9.27 N 02/27/98
QCSB 28.2 299.8 299.8 39.0 2.01 1,541,049 11.2 11.2 1.41 1.55 11.55 N 02/27/98
RARB 17.4 203.7 206.6 15.4 2.26 408,308 7.6 7.5 1.52 1.01 12.93 N 02/27/98
RELY 19.1 178.2 261.6 15.3 1.80 2,243,100 8.6 6.0 1.86 0.85 10.31 N 02/27/98
ROSE 18.8 226.8 226.8 15.1 2.06 3,843,056 6.3 6.3 1.75 0.87 14.16 N 02/27/98
SCBS 20.7 145.2 145.2 28.9 1.67 70,893 19.9 19.9 0.87 1.20 5.66 N 02/27/98
SCCB 30.7 134.5 134.5 27.8 2.98 45,092 20.7 20.7 0.70 1.00 3.95 N 02/27/98
SFED 23.9 121.3 121.3 14.9 1.49 174,428 12.3 12.3 0.90 0.61 4.87 N 02/27/98
SFFC 19.8 141.9 141.9 25.1 1.40 88,608 17.7 17.7 0.72 1.27 7.21 N 02/27/98
SFIN 17.9 158.7 158.9 14.9 1.93 703,112 9.4 9.4 1.27 0.81 8.46 N 02/27/98
Source: SNL & F&C calculations 9
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
Tangible
Price/ Current Current Current Total Equity/ Equity/ Core Core Core
LTM Price/ Price/ T Price/ Dividend Assets Assets T Assets EPS ROAA ROAE Merger Current
Core EPS Book V Book V Assets Yield ($000) (%) (%) ($) (%) (%) Target? Pricing
Ticker (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM LTM (Y/N) Date
SFSL 20.6 262.5 266.7 24.6 1.46 677,876 9.4 9.2 1.07 1.37 14.78 N 02/27/98
SISB 17.9 207.1 207.1 15.1 1.70 1,733,618 7.2 7.2 2.10 0.87 12.13 N 02/27/98
SKAN 17.6 155.5 159.8 10.7 1.46 256,101 6.9 6.7 1.09 0.66 9.47 N 02/27/98
SMBC 24.2 136.0 136.0 22.0 2.25 163,297 16.2 16.2 0.92 0.90 5.61 N 02/27/98
SOBI 31.1 115.5 115.5 17.9 1.56 87,553 14.4 14.4 0.66 0.61 3.95 N 02/27/98
SOPN 18.9 127.6 127.6 29.1 3.73 300,816 22.8 22.8 1.25 1.75 7.43 N 02/27/98
SPBC 18.8 216.9 217.4 19.9 1.51 4,557,336 9.2 9.2 1.41 1.09 12.25 N 02/27/98
SSB 15.6 131.0 131.0 31.5 1.98 61,473 24.1 24.1 0.65 1.65 5.17 N 02/27/98
SSFC 28.3 165.6 165.6 26.6 3.08 228,491 14.9 14.9 0.46 0.83 3.32 N 02/27/98
SSM 23.0 125.2 125.2 37.0 2.20 104,773 29.6 29.6 0.89 1.56 4.57 N 02/27/98
STFR 19.4 175.9 197.3 14.3 1.29 1,597,648 8.3 7.4 2.24 0.75 9.18 N 02/27/98
STSA 21.2 177.5 192.1 9.7 -- 1,876,250 5.5 5.1 1.14 0.51 9.51 N 02/27/98
SVRN 21.3 254.6 306.6 12.6 0.41 14,336,283 5.4 4.7 0.91 0.69 12.55 N 02/27/98
SZB 26.5 135.7 135.7 13.1 2.70 165,388 9.7 9.7 0.84 0.67 5.08 N 02/27/98
THR 23.3 147.6 148.1 19.9 1.87 97,487 13.5 13.4 1.01 0.84 6.12 N 02/27/98
THRD 24.5 149.8 179.4 13.9 1.85 597,047 8.4 7.1 1.06 0.66 6.28 N 02/27/98
TPNZ 26.8 128.8 128.8 21.9 1.49 126,470 17.0 17.0 0.70 0.80 4.65 N 02/27/98
TRIC 18.2 118.2 118.2 18.2 2.86 89,999 15.4 15.4 0.77 1.05 6.89 N 02/27/98
TSH 18.4 131.3 131.3 17.8 2.37 408,591 13.5 13.5 1.15 0.94 6.97 N 02/27/98
TWIN 24.2 133.4 133.4 17.3 2.76 106,932 12.9 12.9 0.60 0.72 5.59 N 02/27/98
UBMT 22.1 133.4 133.4 32.0 3.70 103,082 24.0 24.0 1.22 1.40 6.04 N 02/27/98
VABF 29.5 206.9 206.9 14.8 1.33 605,486 7.2 7.2 0.61 0.49 7.24 N 02/27/98
WAMU 21.3 322.7 346.5 17.8 1.73 97,068,825 5.5 5.1 3.15 0.87 15.29 N 02/27/98
WBST 18.2 229.6 263.2 12.5 1.25 7,019,621 5.4 4.8 3.53 0.77 14.06 N 02/27/98
WCBI 17.8 147.1 147.1 22.6 2.35 315,944 15.4 15.4 1.63 1.41 9.14 N 02/27/98
WCFB 31.5 194.9 194.9 45.6 3.90 94,482 23.4 23.4 0.65 1.42 6.09 N 02/27/98
WEFC 16.7 124.8 124.8 18.4 2.54 201,436 14.7 14.7 1.13 1.06 7.48 N 02/27/98
WEHO 28.4 139.2 139.2 31.2 2.44 134,259 22.5 22.5 0.52 1.04 3.51 N 02/27/98
WFI 18.7 221.0 225.1 16.3 1.86 329,897 7.4 7.3 1.44 0.91 12.63 N 02/27/98
WFSL 13.7 196.1 212.7 25.3 3.16 5,713,308 12.9 12.0 2.02 1.87 15.35 N 02/27/98
WHGB 33.0 129.0 129.0 25.4 1.73 101,331 19.7 19.7 0.56 0.77 3.66 N 02/27/98
WOFC 33.4 114.3 122.5 15.9 3.74 397,425 13.9 13.1 0.80 0.43 3.16 N 02/27/98
WRNB 15.8 218.6 218.6 23.6 2.26 370,993 10.8 10.8 1.46 1.61 15.53 N 02/27/98
WSB 29.2 170.6 170.6 14.5 1.14 264,904 8.5 8.5 0.30 0.52 6.25 N 02/27/98
WSFS 16.3 298.1 299.9 17.1 -- 1,515,217 5.7 5.7 1.27 1.10 20.00 N 02/27/98
WSTR 20.0 134.7 165.7 14.0 1.85 1,035,096 10.4 8.6 1.30 0.76 6.94 N 02/27/98
WVFC 17.9 214.1 214.1 22.8 3.16 292,022 10.7 10.7 2.12 1.31 11.03 N 02/27/98
WYNE 22.7 148.6 148.6 18.5 0.82 267,285 12.4 12.4 1.08 0.86 6.01 N 02/27/98
YFCB 17.5 125.7 125.7 17.0 1.50 331,802 13.5 13.5 1.07 1.04 7.00 N 02/27/98
YFED 25.0 215.4 215.4 19.1 2.04 1,182,276 8.9 8.9 1.02 0.80 9.36 N 02/27/98
Maximum 34.2 348.3 400.5 45.6 4.92 97,068,825 40.1 40.1 6.04 3.97 44.97
Minimum 3.4 86.3 86.3 5.4 -- 36,103 3.6 3.1 0.29 0.31 2.75
Average 21.3 173.6 181.7 19.1 1.68 1,765,084 11.9 11.7 1.31 0.99 9.37
Median 20.6 159.7 165.7 17.8 1.63 357,691 10.1 9.9 1.12 0.94 8.28
Source: SNL & F&C calculations 10
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
NPAs/ Price/ Core Core Core
Assets Core EPS ROAA ROAE
(%) EPS ($) (%) (%)
Ticker MRQ (x) MRQ MRQ MRQ
AABC 1.58 2.6 1.05 4.90 60.86
ABBK 0.17 22.8 0.23 0.71 10.20
ABCL 0.27 22.2 0.31 0.79 8.16
ABCW 0.97 20.7 0.52 1.03 15.64
AFED 0.30 20.4 0.24 0.78 6.19
AHM 1.73 17.9 0.87 0.83 16.27
ALBC 0.12 22.4 0.12 0.53 6.17
ALBK 0.70 11.1 1.10 1.55 17.41
AMFC NA 26.8 0.16 0.57 3.95
ANA 0.50 20.5 0.27 0.96 5.57
ANDB 0.62 15.8 0.63 1.03 12.95
ANE 1.56 38.2 0.13 0.37 5.12
ASBI 0.49 18.3 0.28 0.92 8.34
ASBP NA 21.5 0.16 0.89 5.73
ASFC 0.52 20.5 0.68 0.75 8.66
BANC 1.07 33.8 0.10 0.44 7.34
BDJI 0.03 20.0 0.26 0.75 7.17
BFD 0.18 21.3 0.26 0.61 7.06
BFSB -- 21.6 0.33 1.10 7.72
BKC 2.11 18.2 0.69 1.05 12.47
BKCT 0.91 19.3 0.24 1.20 11.38
BKUNA 0.37 52.5 0.07 0.21 3.72
BNKU 0.68 19.0 0.62 0.66 13.15
BPLS 1.66 14.8 0.25 0.46 10.94
BVCC 0.51 24.8 0.35 0.58 10.33
BYFC 1.62 159.4 0.02 0.09 0.88
CAFI 0.29 24.4 0.26 0.66 6.90
CASB 0.35 20.4 0.19 0.65 9.49
CASH 0.74 17.3 0.33 0.90 8.36
CATB 0.35 20.9 0.22 1.31 5.30
CBCI 1.64 12.3 0.76 2.16 13.24
CBES 0.54 39.8 0.16 0.56 3.42
CBSA 0.71 14.5 0.54 0.38 10.86
CEBK 0.42 23.5 0.34 0.73 7.40
CENB 0.58 25.2 0.93 1.38 4.56
CFB 0.84 17.0 0.52 0.94 15.15
CFCP 0.59 21.8 0.25 0.94 15.05
CFFC 0.56 29.6 0.26 0.74 5.47
CFNC 0.10 24.7 0.18 1.11 4.88
CFSB 0.10 23.1 0.32 1.18 15.09
CFTP 0.49 31.2 0.15 1.19 4.43
CIBI 0.65 17.3 0.25 0.89 7.64
CKFB 0.10 18.8 0.26 1.39 6.13
CLAS 0.34 20.5 0.23 0.83 5.55
CMRN 0.38 22.7 0.22 0.99 4.64
CMSB 0.42 30.0 0.17 0.45 4.88
CNIT 0.45 18.8 0.95 0.91 12.75
COFI 0.30 19.9 0.76 0.96 13.56
COOP 0.07 29.8 0.17 0.61 7.90
CRZY 0.18 19.6 0.21 1.27 5.36
CVAL 0.55 22.1 0.36 0.96 11.03
DCBI 0.35 27.6 0.22 1.48 5.56
DIBK 0.29 9.4 0.83 1.88 23.11
DIME 0.53 27.3 0.23 0.78 6.08
DME 1.06 34.7 0.22 0.49 8.31
DNFC 0.29 19.3 0.34 0.70 13.21
DSL 0.89 14.1 0.52 0.94 12.99
Source: SNL & F&C calculations 11
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
NPAs/ Price/ Core Core Core
Assets Core EPS ROAA ROAE
(%) EPS ($) (%) (%)
Ticker MRQ (x) MRQ MRQ MRQ
EBSI 1.18 17.1 0.30 0.81 9.69
EFBI -- 34.8 0.24 0.70 6.28
EMLD NA 20.5 0.27 0.97 12.19
EQSB 0.38 17.7 0.43 0.70 13.55
ESBK 0.63 30.1 0.24 0.30 4.80
ETFS 0.33 38.8 0.14 0.44 2.48
FBBC 0.09 15.1 0.31 1.08 10.01
FBCI NA 18.0 0.34 0.78 7.54
FBCV 1.23 19.0 0.33 0.55 6.29
FBER 0.84 27.4 0.18 0.69 4.94
FBHC 0.47 37.3 0.14 0.37 5.83
FBSI 0.04 18.5 0.23 1.23 8.80
FCBF 0.26 18.6 0.42 1.22 8.75
FCME 1.59 19.2 0.19 0.70 7.36
FDEF 0.33 34.7 0.11 0.64 3.37
FED 0.96 17.4 0.58 0.60 11.48
FESX 0.54 19.7 0.30 0.79 10.45
FFBA 0.15 20.4 0.31 1.30 9.77
FFBH 0.96 22.4 0.29 0.97 6.49
FFBI 0.32 26.4 0.22 0.43 4.89
FFBZ 0.57 28.8 0.20 0.69 9.02
FFCH 1.35 23.9 0.55 0.87 13.66
FFDB NA 17.7 0.34 0.93 9.63
FFDF 0.05 39.1 0.12 0.73 3.00
FFED 0.30 24.4 0.10 0.58 8.19
FFES 0.25 16.6 0.58 0.65 9.77
FFFD NA 18.1 0.29 1.71 7.49
FFHH 0.22 19.4 0.26 0.74 6.74
FFHS 0.33 22.5 0.30 0.64 7.21
FFIC 0.27 21.3 0.30 0.85 6.37
FFKY 0.07 15.7 0.35 1.51 11.01
FFLC 0.19 19.4 0.25 0.97 7.40
FFOH 0.18 21.4 0.21 0.86 6.84
FFPB 0.52 36.4 0.26 0.30 4.74
FFSL 0.89 20.5 0.18 0.64 6.25
FFSX 0.14 28.8 0.27 0.70 7.82
FFWC 0.31 14.0 0.33 0.99 10.25
FFWD 0.02 30.6 0.18 1.21 9.56
FFYF 0.62 17.5 0.49 1.25 9.14
FGHC 1.64 16.7 0.15 1.12 13.49
FIBC 1.89 15.5 0.42 0.94 10.31
FISB 1.38 26.1 0.28 0.94 9.72
FKFS 1.15 17.5 0.25 0.64 9.65
FKKY -- 16.9 0.24 1.14 6.25
FLAG 3.92 25.8 0.20 0.69 7.75
FLFC 1.00 21.5 0.35 0.87 11.61
FLGS 3.04 12.6 0.45 1.41 21.01
FLKY 2.28 31.5 0.12 0.99 3.17
FMCO 1.15 15.4 0.57 0.99 15.00
FMSB -- 16.4 0.28 1.06 15.58
FNGB 0.09 19.1 0.17 0.91 8.19
FSBI 0.15 17.6 0.41 0.68 10.02
FSTC 1.12 19.5 0.41 1.41 14.00
FTF 0.07 17.2 0.41 1.58 10.33
FTFC 0.32 23.4 0.34 0.86 12.50
FTSB 2.04 18.5 0.21 1.24 7.75
FWWB 0.19 20.6 0.31 1.06 7.79
Source: SNL & F&C calculations 12
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
NPAs/ Price/ Core Core Core
Assets Core EPS ROAA ROAE
(%) EPS ($) (%) (%)
Ticker MRQ (x) MRQ MRQ MRQ
GAF 0.22 17.5 0.28 1.01 6.92
GDW 1.07 14.0 1.60 0.94 13.98
GFCO 0.06 19.0 0.27 0.87 9.29
GPT 2.90 19.1 0.97 1.11 11.68
GSBC 1.84 16.4 0.39 1.72 20.10
GSFC 0.07 27.0 0.17 1.54 4.37
GUPB 0.24 17.0 0.30 0.82 6.50
HALL 0.09 16.7 0.24 0.68 9.10
HARB 0.51 24.5 0.72 1.28 14.72
HARL -- 15.6 0.48 0.95 14.11
HAVN 0.66 18.0 0.34 0.63 10.79
HBBI 0.67 25.7 0.22 0.61 4.32
HBFW -- 30.3 0.27 0.73 5.92
HBNK 1.94 13.0 0.69 1.26 16.43
HBS 0.67 8.3 0.66 2.18 15.52
HFFB -- 20.9 0.20 1.32 4.89
HFFC 0.33 13.7 0.53 1.09 11.42
HFNC 0.79 31.0 0.11 0.82 4.43
HFSA 0.19 18.8 0.25 0.67 5.91
HHFC 0.03 26.8 0.14 0.51 4.64
HIFS 0.77 16.2 0.51 1.25 12.77
HMNF NA 31.5 0.23 0.60 4.36
HOMF 0.55 20.2 0.39 1.23 14.16
HPBC -- 14.7 0.45 1.62 15.37
HRBF 0.53 28.6 0.21 0.64 4.92
HRZB NA 15.4 0.29 1.66 10.24
HTHR 8.06 10.5 0.47 1.46 24.29
HWEN 1.63 37.5 0.06 0.43 2.51
HZFS 0.96 20.1 0.18 0.72 7.12
IBSF 0.11 31.7 0.14 0.84 4.78
INBI 0.23 16.5 0.28 1.53 9.11
IPSW 0.95 18.8 0.19 0.92 17.15
ITLA NA 12.0 0.42 1.41 13.75
IWBK 0.69 21.2 0.49 0.80 12.33
JSB 1.02 21.0 0.64 1.74 7.59
JSBA 0.67 29.4 0.23 0.70 7.92
JXVL 0.70 16.0 0.32 1.33 9.18
KFBI 0.02 25.6 0.22 0.88 5.84
KNK 0.89 17.6 0.48 0.83 7.51
KSBK NA 14.2 0.34 1.07 14.32
KYF 0.04 21.7 0.16 0.94 5.55
LARK 0.15 16.7 0.33 0.97 6.87
LARL 0.42 17.7 0.31 1.37 12.98
LFBI 0.90 27.8 0.18 0.57 4.75
LFCO NA 4.9 0.81 6.33 42.71
LFED 0.03 33.8 0.16 1.14 6.83
LISB 0.89 33.4 0.45 0.69 7.61
LOGN 0.62 13.5 0.30 1.71 8.96
LONF 0.20 15.5 0.24 1.23 7.30
LSBI NA 16.4 0.43 0.76 8.79
LSBX 0.52 5.1 0.83 4.28 44.00
LVSB 1.14 24.9 0.26 1.00 8.70
LXMO 0.67 24.3 0.17 1.09 3.97
MAFB 0.26 16.3 0.57 1.05 13.71
MARN 1.43 24.1 0.28 1.08 5.07
MASB 0.19 19.3 0.64 1.02 9.29
MBB NA 28.1 0.31 0.60 6.81
Source: SNL & F&C calculations 13
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
NPAs/ Price/ Core Core Core
Assets Core EPS ROAA ROAE
(%) EPS ($) (%) (%)
Ticker MRQ (x) MRQ MRQ MRQ
MBLF 0.48 20.1 0.35 0.83 6.54
MBSP 1.77 32.7 0.13 1.20 3.02
MCBN 0.85 19.5 0.49 0.75 8.84
MDBK 0.16 17.1 0.64 1.08 12.07
MECH 0.58 19.0 0.35 0.86 8.47
METF 0.52 16.8 0.25 0.75 19.14
MFBC -- 23.3 0.29 0.76 5.82
MFFC 0.09 30.5 0.13 0.54 4.49
MFLR 0.65 18.2 0.37 1.02 10.56
MIFC 0.21 15.8 0.20 1.07 11.37
MIVI 0.43 19.1 0.24 1.06 6.30
MSBF 0.02 20.5 0.21 1.36 8.16
MWBI 0.73 16.4 0.26 0.76 10.83
MWBX 0.58 15.2 0.13 1.26 17.10
NASB 3.07 13.4 1.24 1.51 18.27
NBN 1.03 22.6 0.20 0.73 9.55
NEIB 0.17 16.9 0.33 1.28 8.66
NHTB 0.87 27.4 0.18 0.52 6.91
NMSB 0.78 16.7 0.20 1.01 9.94
NSLB 0.03 31.0 0.14 0.46 2.31
NWEQ 1.33 15.9 0.35 1.10 9.45
OCFC 0.52 19.6 0.45 0.97 6.37
OFCP 0.27 22.4 0.33 0.86 10.02
OHSL 0.03 27.0 0.34 0.70 6.43
PBCI 1.70 17.6 0.38 1.15 8.88
PBKB 0.57 35.0 0.16 0.28 6.89
PCBC 0.01 23.0 0.26 0.95 4.94
PDB 1.13 20.4 0.13 1.13 6.88
PEEK 0.77 26.6 0.16 1.01 3.92
PERM 0.70 23.8 0.31 0.63 6.47
PFDC 0.25 18.5 0.30 1.40 9.21
PFED 0.23 58.6 0.08 0.41 1.84
PFFB 1.38 20.2 0.24 0.61 6.14
PFFC 0.04 45.8 0.09 0.59 3.16
PFNC 0.50 26.4 0.16 0.64 12.09
PFSB 0.55 16.6 0.28 0.76 10.60
PFSL 0.13 33.5 0.33 0.58 9.16
PHBK 0.75 16.4 0.71 1.24 17.38
PHFC 1.68 17.1 0.26 0.67 6.86
PRBC 0.43 29.9 0.16 0.39 3.35
PTRS 0.44 19.0 0.25 0.80 8.90
PULS 0.85 15.6 0.42 1.02 12.69
PVFC 0.96 12.8 0.45 1.26 17.48
PVSA 0.36 15.3 0.52 1.08 14.56
PWBC 0.68 18.4 0.26 0.69 8.33
PWBK 0.74 34.4 0.16 0.70 3.85
QCBC 1.33 15.2 0.33 0.72 8.44
QCFB 0.39 12.0 0.57 1.68 9.90
QCSB 0.53 26.2 0.38 1.46 12.78
RARB 0.23 17.0 0.39 0.97 12.93
RELY 0.54 18.1 0.49 0.87 10.30
ROSE 0.48 17.5 0.47 0.89 14.35
SCBS 2.17 20.5 0.22 1.22 6.05
SCCB 1.53 44.8 0.12 0.62 2.61
SFED 0.82 23.4 0.23 0.56 4.63
SFFC 1.74 19.8 0.18 1.24 7.05
SFIN 0.33 17.2 0.33 0.81 8.62
Source: SNL & F&C calculations 14
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
NPAs/ Price/ Core Core Core
Assets Core EPS ROAA ROAE
(%) EPS ($) (%) (%)
Ticker MRQ (x) MRQ MRQ MRQ
SFSL 0.43 19.6 0.28 1.36 14.68
SISB 0.44 15.4 0.61 0.93 13.02
SKAN 1.89 18.4 0.26 0.61 8.63
SMBC 0.88 26.5 0.21 0.83 5.09
SOBI 0.26 30.2 0.17 0.59 4.06
SOPN 0.20 18.5 0.32 1.74 7.61
SPBC 0.17 18.4 0.36 1.07 11.87
SSB -- 28.1 0.09 1.00 4.31
SSFC 0.16 NM (0.06) (0.40) (1.71)
SSM -- 25.6 0.20 1.49 4.98
STFR 0.21 20.9 0.52 0.66 8.30
STSA 0.73 18.3 0.33 0.54 10.11
SVRN 0.63 17.3 0.28 0.80 15.13
SZB NA 23.2 0.24 0.67 5.94
THR 0.95 24.5 0.24 0.78 5.70
THRD 0.29 24.1 0.27 0.61 7.45
TPNZ 1.19 27.6 0.17 0.74 4.35
TRIC -- 19.4 0.18 0.98 6.46
TSH 0.38 18.9 0.28 0.90 6.66
TWIN 0.08 19.1 0.19 0.90 6.97
UBMT 0.35 20.5 0.33 1.53 6.52
VABF 0.50 26.5 0.17 0.55 7.90
WAMU NA 18.7 0.90 0.95 17.13
WBST 0.65 16.2 0.99 0.81 14.99
WCBI 0.19 17.7 0.41 1.38 8.94
WCFB 0.07 32.0 0.16 1.38 5.94
WEFC NA 16.9 0.28 1.04 7.22
WEHO -- NA NA 0.97 3.60
WFI 0.22 16.8 0.40 0.98 13.41
WFSL 0.60 13.8 0.50 1.88 14.64
WHGB 0.95 38.5 0.12 0.61 3.08
WOFC 0.44 33.4 0.20 0.40 2.89
WRNB 0.83 16.4 0.35 1.53 14.19
WSB NA 36.5 0.06 0.39 4.59
WSFS 1.23 17.3 0.30 1.00 17.34
WSTR 0.29 18.1 0.36 0.80 7.53
WVFC 0.20 16.4 0.58 1.44 11.95
WYNE 0.89 24.5 0.25 0.76 5.57
YFCB 0.49 18.0 0.26 0.92 6.63
YFED 1.01 27.7 0.23 0.74 8.44
Maximum 8.06 159.4 1.60 6.330 60.860
Minimum -- 2.6 (0.06) (0.400) (1.710)
Average 0.67 22.3 0.33 0.975 9.339
Median 0.50 19.7 0.28 0.900 8.245
Source: SNL & F&C calculations 15
EXHIBIT VI
FERGUSON & COMPANY
- ------------------
EXHIBIT VI - COMPARATIVE GROUP SELECTION
To search for a comparative group for Northfield, we selected all thrifts from
the entire U.S. with assets under $100 million that have sufficient trading
volume to produce meaningful market information. All of these thrifts are listed
on either AMEX, NYSE, or Nasdaq.
We found 49 thrifts in the asset size described above. We eliminated 39 and
retained a group of 10. Normally, we consider 10 to 12 to be the desired sample
size.
We eliminated thrifts for the following reasons: 1) Mutual holding company; 2)
No PE for the last quarter or PE ratio for the last quarter greater than 35; 3)
Tangible equity less than 10% of assets or greater than 25% of assets; 4) Merger
agreement has been executed; 5) Non-performing assets greater than 1.5% of
assets; 6) Loans less than 50% of assets; and 7) Loans serviced greater than 20%
of assets.
After eliminating thrifts as discussed above, we had 17 left. We then eliminated
all thrifts with assets over $85 million, eliminating 7 and reducing our group
to 10.
The group of 49 from which the comparative group was selected is listed on
Exhibit VI.1 and the selected comparative group is listed on Exhibit VI.2. On
Exhibit VI.1, we have blocked the cells that indicate which ones were not
selected and why. Set forth below is a legend for the column summarizing reasons
individual thrifts were not selected.
A Mutual holding company.
B No core EPS for most recent quarter or PR ratio over 35.
C Assets greater than $85 million.
D Equity either less than 10% of assets or greater than 25% of assets.
E Merger agreement has been executed.
F Non-performing assets greater than 1.5% of total assets.
G Loans less than 50% of assets.
H Loans serviced exceeds 20% of assets.
1
FERGUSON & COMPANY EXHIBIT VI.1 - COMPARATIVE GROUP SELECTION
- ------------------
A
Deposit Current Current Price/
Insurance Stock Market LTM
Agency Price Value Core EPS
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($) ($M) (x)
ALBC Albion Banc Corp. Albion NY MA SAIF NASDAQ 07/26/93 28.000 7.00 21.4
ATSB AmTrust Capital Corp. Peru IN MW SAIF NASDAQ 03/28/95 13.750 7.24 40.4
CIBI Community Investors Bancorp Bucyrus OH MW SAIF NASDAQ 02/07/95 15.750 14.21 15.0
CKFB CKF Bancorp Inc. Danville KY MW SAIF NASDAQ 01/04/95 18.500 16.71 19.7
CNSB CNS Bancorp Inc. Jefferson City MO MW SAIF NASDAQ 06/12/96 21.500 35.54 41.4
CRZY Crazy Woman Creek Bancorp Buffalo WY WE SAIF NASDAQ 03/29/96 15.375 14.68 20.8
CSBF CSB Financial Group Inc. Centralla IL MW SAIF NASDAQ 10/09/95 13.250 12.48 49.1
FCB Falmouth Bancorp Inc. Falmouth MA NE BIF AMSE 03/28/96 20.000 29.10 40.0
FFBI First Financial Bancorp Inc. Belvidere IL MW SAIF NASDAQ 10/04/93 21.000 8.72 23.1
FFDF FFD Financial Corp. Dover OH MW SAIF NASDAQ 04/03/96 18.625 26.91 30.0
FLKY First Lancaster Bancshares Lancaster KY MW SAIF NASDAQ 07/01/96 15.750 14.98 28.6
FTSB Fort Thomas Financial Corp. Fort Thomas KY MW SAIF NASDAQ 06/28/95 15.500 23.17 19.6
GFSB GFS Bancorp Inc. Grinnell IA MW SAIF NASDAQ 01/06/94 17.063 16.86 15.2
GWBC Gateway Bancorp Inc. Catlettsburg KY MW SAIF NASDAQ 01/18/95 18.750 20.28 31.8
HBBI Home Building Bancorp Washington IN MW SAIF NASDAQ 02/08/95 21.250 6.62 18.8
HCFC Home City Financial Corp. Springfield OH MW SAIF NASDAQ 12/30/96 17.250 15.60 NA
HHFC Harvest Home Financial Corp. Chevlot OH MW SAIF NASDAQ 10/10/94 14.750 13.49 27.8
HWEN Home Financial Bancorp Spencer IN MW SAIF NASDAQ 07/02/96 17.625 8.19 27.1
HZFS Horizon Financial Svcs Corp. Oskaloosa IA MW SAIF NASDAQ 06/30/94 11.750 10.00 18.7
INCB Indiana Community Bank SB Lebanon IN MW SAIF NASDAQ 12/15/94 20.500 18.90 39.4
JOAC Joachim Bancorp Inc. De Soto MO MW SAIF NASDAQ 12/28/95 15.000 10.84 39.5
KYF Kentucky First Bancorp Inc. Cynthiana KY MW SAIF AMSE 08/29/95 14.688 19.06 18.6
LOGN Logansport Financial Corp. Logansport IN MW SAIF NASDAQ 06/14/95 15.250 19.22 16.2
LONF London Financial Corporation London OH MW SAIF NASDAQ 04/01/96 15.250 7.86 20.1
LXMO Lexington B&L Financial Corp. Lexington MO MW SAIF NASDAQ 06/06/96 17.125 19.50 22.5
MBSP Mitchell Bancorp Inc. Spruce Pine NC SE SAIF NASDAQ 07/12/96 17.250 16.06 27.8
MCBN Mid-Coast Bancorp Inc. Waldoboro ME NE SAIF NASDAQ 11/02/89 28.750 6.70 15.6
MIVI Mississippi View Holding Co. Little Falls MN MW SAIF NASDAQ 03/24/95 17.500 12.95 18.4
MRKF Market Financial Corp. Mount Healthy OH MW SAIF NASDAQ 03/27/97 15.438 20.62 NA
MSBF MSB Financial Inc. Marshall MI MW SAIF NASDAQ 02/06/95 19.500 24.06 22.7
NSLB NS&L Bancorp Inc. Neosho MO MW SAIF NASDAQ 06/08/95 18.500 13.09 30.8
NWEQ Northwest Equity Corp. Amery WI MW SAIF NASDAQ 10/11/94 19.250 16.15 16.0
OSFS Ohio State Financial Services Bridgeport OH MW SAIF NASDAQ 09/29/97 15.000 9.51 NA
PCBC Perry County Financial Corp. Perryville MO MW SAIF NASDAQ 02/13/95 23.250 19.25 17.2
PFFC Peoples Financial Corp. Massillon OH MW SAIF NASDAQ 09/13/96 13.750 20.15 NA
PSFI PS Financial Inc. Chicago IL MW SAIF NASDAQ 11/27/96 18.500 38.36 NA
PWBK Pennwood Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 07/15/96 18.500 10.54 19.9
RELI Reliance Bancshares Inc. Milwaukee WI MW SAIF NASDAQ 04/19/96 8.875 21.94 35.5
SCBS Southern Community Bancshares Cullman AL SE SAIF NASDAQ 12/23/96 19.000 21.61 NA
SCCB S. Carolina Community Bancshrs Winnsboro SC SE SAIF NASDAQ 07/07/94 22.500 15.72 28.9
SFFC StateFed Financial Corp. Des Moines IA MW SAIF NASDAQ 01/05/94 13.375 20.83 18.6
SHSB SHS Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 10/01/97 17.250 14.14 NA
SOBI Sobieski Bancorp Inc. South Bend IN MW SAIF NASDAQ 03/31/95 19.375 15.10 31.8
SSB Scotland Bancorp Inc. Laurinburg NC SE SAIF AMSE 04/01/96 10.250 19.61 13.9
SZB SouthFirst Bancshares Inc. Sylacauga AL SE SAIF AMSE 02/14/95 20.625 17.48 108.6
THR Three Rivers Financial Corp. Three Rivers MI MW SAIF AMSE 08/24/95 20.250 16.68 20.1
TRIC Tri-County Bancorp Inc. Torrington WY WE SAIF NASDAQ 09/30/93 14.750 17.22 18.9
USAB USABancshares, Inc. Philadelphia PA MA BIF NASDAQ NA 9.625 7.05 37.0
WCFB Webster City Federal SB (MHC) Webster City IA MW SAIF NASDAQ 08/15/94 21.250 44.63 32.7
Maximum 28.750 44.63 108.6
Minimum 8.875 6.62 13.9
Average 17.460 17.07 27.6
Median 17.250 16.15 22.6
2
SOURCE: SNL & F&C CALCULATIONS
FERGUSON & COMPANY EXHIBIT VI.1 - COMPARATIVE GROUP SELECTION
- ------------------
B C D
Tangible ROAA ROACE
Price/ Current Current Current Total Equity/ Equity/ Core Before Before
Core Price/ Price/ T Price/ Dividend Assets Assets T Assets EPS Extra Extra
EPS B Value B Value Assets Yield ($000) (%) (%) ($) (%) (%)
Ticker (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM LTM
ALBC 18.9 115.5 115.5 9.9 1.14 70,810 8.6 8.6 1.31 0.50 5.54
ATSB 57.3 95.1 96.0 10.4 1.46 69,685 10.9 10.8 0.34 0.40 3.86
CIBI 14.1 130.3 130.3 15.3 2.03 94,328 11.8 11.8 1.05 0.97 8.37
CKFB 17.8 109.4 109.4 27.9 2.70 59,868 23.7 23.7 0.94 1.82 7.51
CNSB 41.4 149.9 149.9 36.5 1.12 97,411 24.3 24.3 0.52 0.79 3.20
CRZY 18.3 103.3 103.3 24.5 2.60 59,952 23.7 23.7 0.74 1.28 4.74
CSBF 55.2 102.0 108.0 25.6 - 48,844 25.0 24.0 0.27 0.31 1.21
FCB 35.7 127.6 127.6 30.2 1.00 96,391 23.7 23.7 0.50 0.83 3.36
FFBI 23.9 116.0 116.0 10.4 - 84,242 8.9 8.9 0.91 (0.04) (0.54)
FFDF 27.4 125.3 125.3 30.5 1.61 88,220 24.3 24.3 0.62 1.93 7.83
FLKY 32.8 107.7 107.7 31.8 3.18 47,184 29.5 29.5 0.55 1.24 3.64
FTSB 16.9 146.8 146.8 23.7 1.61 97,843 16.1 16.1 0.79 1.22 7.18
GFSB 14.7 155.0 155.0 17.8 1.52 94,496 11.5 11.5 1.12 1.27 11.01
GWBC 58.6 116.1 116.1 32.2 2.13 62,609 27.7 27.7 0.59 0.94 3.60
HBBI 19.7 104.0 104.0 15.9 1.41 41,746 14.1 14.1 1.13 0.75 5.76
HCFC 14.9 113.5 113.5 22.3 2.09 70,110 19.6 19.6 NA 1.23 6.40
HHFC 19.4 130.4 130.4 15.4 2.98 87,596 11.8 11.8 0.53 0.30 2.31
HWEN 31.5 112.9 112.9 19.8 1.14 41,309 17.6 17.6 0.65 0.85 4.60
HZFS 14.0 114.4 114.4 11.4 1.53 87,784 10.0 10.0 0.63 0.81 7.85
INCB 34.2 165.6 165.6 19.7 1.76 96,089 11.9 11.9 0.52 0.53 4.30
JOAC 41.7 109.8 109.8 30.9 3.33 35,073 28.1 28.1 0.38 0.79 2.72
KYF 17.5 130.1 130.1 21.7 3.40 88,089 16.7 16.7 0.79 1.15 6.64
LOGN 15.9 118.6 118.6 22.4 2.62 85,801 18.9 18.9 0.94 1.42 7.28
LONF 17.3 103.3 103.3 20.6 1.57 38,210 19.9 19.9 0.76 1.03 4.96
LXMO 19.5 116.3 116.3 32.9 1.75 59,236 28.3 28.3 0.76 1.02 3.45
MBSP 28.8 112.3 112.3 46.4 2.32 34,591 41.4 41.4 0.62 1.62 3.79
MCBN 14.4 126.9 126.9 10.9 1.81 61,473 8.6 8.6 1.84 0.76 8.73
MIVI 19.0 107.4 107.4 18.9 0.91 68,546 17.6 17.6 0.95 1.07 6.04
MRKF 25.7 103.7 103.7 36.7 1.81 56,121 35.5 35.5 NA 0.99 3.66
MSBF 22.2 188.8 188.8 31.2 1.44 77,014 16.5 16.5 0.86 1.50 8.42
NSLB 24.3 112.1 112.1 21.9 2.70 59,711 19.6 19.6 0.60 0.49 2.39
NWEQ 15.0 132.5 132.5 16.7 2.91 96,954 11.7 11.7 1.20 1.03 8.75
OSFS NA 91.1 91.1 24.7 - 38,559 27.1 27.1 NA 0.98 NA
PCBC 19.4 123.6 123.6 23.7 1.72 81,105 19.2 19.2 1.35 0.93 4.97
PFFC 24.6 87.1 87.1 23.7 3.64 86,486 27.2 27.2 NA 0.59 2.31
PSFI 24.3 125.3 125.3 46.8 2.60 85,698 37.3 37.3 NA 2.03 5.26
PWBK 19.3 120.6 120.6 22.1 1.73 47,645 18.3 18.3 0.93 0.99 5.20
RELI 31.7 96.7 96.7 46.7 - 46,987 48.3 48.3 0.25 1.32 2.58
SCBS 22.6 144.1 144.1 30.7 1.58 70,370 21.3 21.3 NA 0.55 NA
SCCB 31.3 129.7 129.7 34.5 2.67 45,619 26.6 26.6 0.78 1.15 4.37
SFFC 22.3 135.7 135.7 23.8 1.50 87,542 17.5 17.5 0.72 1.28 7.20
SHSB NA NA NA NA - 88,460 13.3 13.3 NA 0.45 NA
SOBI 26.9 112.3 112.3 17.9 1.65 84,279 14.8 14.8 0.61 0.62 3.88
SSB 10.7 134.7 134.7 30.5 2.93 64,399 22.6 22.6 0.74 1.89 6.39
SZB 34.4 128.4 128.4 18.0 2.42 97,283 14.0 14.0 0.19 (0.03) (0.20)
THR 18.8 128.6 129.1 17.7 1.98 94,216 13.8 13.7 1.01 0.90 6.48
TRIC 17.6 127.5 127.5 19.5 2.71 88,173 15.3 15.3 0.78 1.05 7.13
USAB 16.0 143.0 145.2 11.0 - 64,269 8.4 8.3 0.26 0.53 4.57
WCFB 33.2 202.0 202.0 47.2 3.77 94,481 23.4 23.4 0.65 1.42 6.09
Maximum 58.6 202.0 202.0 47.2 3.77 97,843 48.3 48.3 1.84 2.03 11.01
Minimum 10.7 87.1 87.1 9.9 - 34,591 8.4 8.3 0.19 (0.04) (0.54)
Average 25.1 123.6 123.8 24.6 1.85 71,896 20.1 20.1 0.75 0.97 5.10
Median 22.2 119.6 119.6 23.1 1.75 70,810 18.9 18.9 0.74 0.98 4.97
E F
NPAs/
Merger Current Assets
Target? Pricing (%)
Ticker (Y/N) Date MRQ
ALBC N 12/12/97 0.12
ATSB N 12/12/97 2.20
CIBI N 12/12/97 0.53
CKFB N 12/12/97 0.70
CNSB N 12/12/97 0.50
CRZY N 12/12/97 0.38
CSBF N 12/12/97 0.56
FCB N 12/12/97 NA
FFBI N 12/12/97 0.32
FFDF N 12/12/97 NA
FLKY N 12/12/97 2.28
FTSB N 12/12/97 1.91
GFSB Y 12/12/97 0.98
GWBC Y 12/12/97 0.76
HBBI N 12/12/97 0.44
HCFC N 12/12/97 0.82
HHFC N 12/12/97 0.11
HWEN N 12/12/97 1.70
HZFS N 12/12/97 0.71
INCB Y 12/12/97 NA
JOAC N 12/12/97 0.20
KYF N 12/12/97 0.04
LOGN N 12/12/97 0.49
LONF N 12/12/97 NA
LXMO N 12/12/97 0.48
MBSP N 12/12/97 2.25
MCBN N 12/12/97 0.55
MIVI N 12/12/97 NA
MRKF N 12/12/97 -
MSBF N 12/12/97 0.02
NSLB N 12/12/97 0.02
NWEQ N 12/12/97 1.42
OSFS N 12/12/97 0.44
PCBC N 12/12/97 0.03
PFFC N 12/12/97 -
PSFI N 12/12/97 0.68
PWBK N 12/12/97 0.94
RELI N 12/12/97 -
SCBS N 12/12/97 2.16
SCCB N 12/12/97 0.87
SFFC N 12/12/97 2.19
SHSB N 12/12/97 1.42
SOBI N 12/12/97 0.13
SSB N 12/12/97 NA
SZB N 12/12/97 0.53
THR N 12/12/97 0.87
TRIC N 12/12/97 -
USAB N 12/12/97 0.57
WCFB N 12/12/97 0.07
Maximum 2.28
Minimum -
Average 0.73
Median 0.53
3
SOURCE: SNL & F&C CALCULATIONS
FERGUSON & COMPANY EXHIBIT VI.1 - COMPARATIVE GROUP SELECTION
- ------------------
G H
Loans Loans
Loans/ Loans/ Deposits/ Borrowings/ Serviced Serviced/
Deposits Assets Assets Assets For Others Assets
(%) (%) (%) (%) ($000) (%)
Ticker MRQ MRQ MRQ MRQ MRY MRY Reasons Excluded
----------------
ALBC 92.67 71.80 77.48 13.07 11,080 15.6 D
ATSB 102.96 71.52 69.47 18.78 29,025 41.7 B, F, H
CIBI 107.50 84.42 78.53 9.05 486 0.5 C
CKFB 129.49 92.32 71.29 3.71 - - Selected
CNSB 93.03 69.68 74.91 - 21,852 22.4 B, C, H
CRZY 98.07 48.27 49.22 26.19 77 0.1 G
CSBF 74.99 55.73 74.31 - - - B, D
FCB NA NA 74.89 0.77 NA NA B, C, H
FFBI 83.44 67.21 80.54 9.73 52,602 62.4 D, H
FFDF 103.14 66.97 64.93 9.39 - - C
FLKY 190.54 90.69 47.59 21.02 - - D, F
FTSB 124.42 91.37 73.44 9.04 - - C, F
GFSB 130.67 85.38 65.34 21.64 33,665 35.6 C, E, H
GWBC 47.93 34.34 71.65 - - - B, D, E, G
HBBI 90.93 68.65 75.50 9.58 - - Selected
HCFC 116.70 85.94 73.64 6.15 2,632 3.8 Selected
HHFC 79.16 51.58 65.15 22.43 350 0.4 C
HWEN 136.66 85.56 62.61 19.37 - - F
HZFS 97.51 62.52 64.12 25.16 1,613 1.8 C
INCB 87.84 76.66 87.28 - 770 0.8 C, E, H
JOAC 100.35 70.44 70.19 - - - B, D
KYF 90.77 56.42 62.15 20.17 - - C
LOGN 99.17 71.36 71.96 6.41 - - C
LONF 99.00 77.60 78.39 0.79 NA NA Selected
LXMO 107.94 76.69 71.05 - 21,106 35.6 H
MBSP 151.12 83.76 55.42 - - - D, F
MCBN 112.62 81.53 72.40 18.61 7,270 11.8 D
MIVI NA NA 80.51 - - - Selected
MRKF 75.22 47.32 62.91 - - - D, G
MSBF 169.02 92.01 54.44 27.61 32,757 42.5 H
NSLB 75.61 55.74 73.72 5.02 - - Selected
NWEQ 127.25 82.18 64.58 23.09 25,250 26.0 C, H
OSFS 89.49 63.95 71.46 - - - C
PCBC 21.97 16.44 74.83 5.55 - - G
PFFC 84.64 60.45 71.43 - - - D
PSFI 86.24 41.58 48.21 9.92 - - C, D, G
PWBK 79.26 60.79 76.69 3.06 149 0.3 Selected
RELI 153.59 57.86 37.67 12.86 - - D
SCBS 75.43 58.98 78.19 - - - F
SCCB 109.53 79.44 72.53 - - - D
SFFC 130.17 77.82 59.78 21.70 - - C, F
SHSB 89.35 65.63 73.46 12.05 476 0.5 B, C, H
SOBI 110.72 76.81 69.37 15.44 - - Selected
SSB 108.28 72.54 66.99 8.54 NA NA Selected
SZB 114.80 73.80 64.29 19.01 - - C
THR 105.19 67.97 64.62 19.89 12,581 13.4 C
TRIC 83.25 44.68 53.66 29.89 163 0.2 C, G
USAB 73.78 53.03 71.88 18.99 - - Selected
WCFB 76.90 57.76 75.11 0.27 - - A, C
Maximum 190.54 92.32 87.28 29.89 52,602 62.4
Minimum 21.97 16.44 37.67 - - -
Average 101.88 67.77 68.36 10.28 5,520 6.9
Median 99.00 69.68 71.43 9.05 - -
4
Source: SNL & F&C calculations
FERGUSON & COMPANY Exhibit VI.2 - Comparative Group Selected
- ------------------
Deposit
Insurance
Agency
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date
CKFB CKF Bancorp Inc. Danville KY MW SAIF NASDAQ 01/04/95
HBBI Home Building Bancorp Washington IN MW SAIF NASDAQ 02/08/95
HCFC Home City Financial Corp. Springfield OH MW SAIF NASDAQ 12/30/96
LONF London Financial Corporation London OH MW SAIF NASDAQ 04/01/96
MIVI Mississippi View Holding Co. Little Falls MN MW SAIF NASDAQ 03/24/95
NSLB NS&L Bancorp Inc. Neosho MO MW SAIF NASDAQ 06/08/95
PWBK Pennwood Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 07/15/96
SOBI Sobieski Bancorp Inc. South Bend IN MW SAIF NASDAQ 03/31/95
SSB Scotland Bancorp Inc. Laurinburg NC SE SAIF AMSE 04/01/96
USAB USABancshares, Inc. Philadelphia PA MA BIF NASDAQ NA
Maximum
Minimum
Average
Median
Current Current Price/
Stock Market LTM
Price Value Core EPS
Ticker ($) ($M) (X)
CKFB 18.500 16.71 19.7
HBBI 21.250 6.62 18.8
HCFC 17.250 15.60 NA
LONF 15.250 7.86 20.1
MIVI 17.500 12.95 18.4
NSLB 18.500 13.09 30.8
PWBK 18.500 10.54 19.9
SOBI 19.375 15.10 31.8
SSB 10.250 19.61 13.9
USAB 9.625 7.05 37.0
Maximum 21.250 19.61 37.0
Minimum 9.625 6.62 13.9
Average 16.600 12.51 23.4
Median 18.000 13.02 19.9
5
FERGUSON & COMPANY Exhibit VI.2 - Comparative Group Selected
- ------------------
Price/ Current Current Current Total Equity/
Core Price/ Price/ T Price/ Dividend Assets Assets
EPS B Value B Value Assets Yield ($000) (%)
Ticker (x) (%) (%) (%) (%) MRQ MRQ
CKFB 17.8 109.4 109.4 27.9 2.70 59,868 23.7
HBBI 19.7 104.0 104.0 15.9 1.41 41,746 14.1
HCFC 14.9 113.5 113.5 22.3 2.09 70,110 19.6
LONF 17.3 103.3 103.3 20.6 1.57 38,210 19.9
MIVI 19.0 107.4 107.4 18.9 0.91 68,546 17.6
NSLB 24.3 112.1 112.1 21.9 2.70 59,711 19.6
PWBK 19.3 120.6 120.6 22.1 1.73 47,645 18.3
SOBI 26.9 112.3 112.3 17.9 1.65 84,279 14.8
SSB 10.7 134.7 134.7 30.5 2.93 64,399 22.6
USAB 16.0 143.0 145.2 11.0 - 64,269 8.4
Maximum 26.9 143.0 145.2 30.5 2.93 84,279 23.7
Minimum 10.7 103.3 103.3 11.0 - 38,210 8.4
Average 18.6 116.0 116.2 20.9 1.77 59,878 17.9
Median 18.4 112.2 112.2 21.2 1.69 62,069 19.0
Tangible ROAA ROACE
Equity/ Core Before Before NPAs/
T Assets EPS Extra Extra Merger Current Assets
(%) ($) (%) (%) Target? Pricing (%)
Ticker MRQ LTM LTM LTM (Y/N) Date MRQ
CKFB 23.7 0.94 1.82 7.51 N 12/12/97 0.70
HBBI 14.1 1.13 0.75 5.76 N 12/12/97 0.44
HCFC 19.6 NA 1.23 6.40 N 12/12/97 0.82
LONF 19.9 0.76 1.03 4.96 N 12/12/97 NA
MIVI 17.6 0.95 1.07 6.04 N 12/12/97 NA
NSLB 19.6 0.60 0.49 2.39 N 12/12/97 0.02
PWBK 18.3 0.93 0.99 5.20 N 12/12/97 0.94
SOBI 14.8 0.61 0.62 3.88 N 12/12/97 0.13
SSB 22.6 0.74 1.89 6.39 N 12/12/97 NA
USAB 8.3 0.26 0.53 4.57 N 12/12/97 0.57
Maximum 23.7 1.13 1.89 7.51 0.94
Minimum 8.3 0.26 0.49 2.39 0.02
Average 17.9 0.77 1.04 5.31 0.52
Median 19.0 0.76 1.01 5.48 0.57
6
FERGUSON & COMPANY Exhibit VI.2 - Comparative Group Selected
- ------------------
Loans Loans
Loans/ Loans/ Deposits/ Borrowings/ Serviced Serviced/
Deposits Assets Assets Assets For Others Assets
(%) (%) (%) (%) ($000) (%)
Ticker MRQ MRQ MRQ MRQ MRY MRY
CKFB 129.49 92.32 71.29 3.71 - -
HBBI 90.93 68.65 75.50 9.58 - -
HCFC 116.70 85.94 73.64 6.15 2,632 3.8
LONF 99.00 77.60 78.39 0.79 NA NA
MIVI NA NA 80.51 - - -
NSLB 75.61 55.74 73.72 5.02 - -
PWBK 79.26 60.79 76.69 3.06 149 0.3
SOBI 110.72 76.81 69.37 15.44 - -
SSB 108.28 72.54 66.99 8.54 NA NA
USAB 73.78 53.03 71.88 18.99 - -
Maximum 129.49 92.32 80.51 18.99 2,632 3.8
Minimum 73.78 53.03 66.99 - - -
Average 98.20 71.49 73.80 7.13 348 0.5
Median 99.00 72.54 73.68 5.59 - -
7
EXHIBIT VII
FERGUSON & COMPANY Exhibit VII
- ------------------
Pro Forma Assumption
1. Net proceeds from the conversion were invested at the beginning of the period
at 5.55%, which was the approximate rate on the one-year treasury bill on
December 31, 1997. This rate was selected because it is considered more
representative of the rate the Bank is likely to earn.
2. Northfield's ESOP will acquire 8% of the conversion stock with loan proceeds
obtained from the Holding Company; therefore, there will be no interest expense.
We assumed that the ESOP expense is 1/12 annually of the initial purchase.
3. Northfield's RP will acquire 4% of the stock through open market purchases at
$10 per share and the expense is recognized ratably over five years as the
shares vest.
4. All pro forma income and expense items are adjusted for income taxes at a
combined state and federal rate of 38.0%.
5. In calculating the pro forma adjustments to net worth, the ESOP and RP are
deducted in accordance with generally accepted accounting principles.
6. Earnings per share ("EPS") calculations have ignored AICPA SOP 93-6.
Calculating EPS under SOP 93-6 and assuming 1/12 of the ESOP shares are
committed to be released and allocated to the individual accounts at the
beginning of the period would yield EPS of $1.00, $.89, $.80, and $.72, and
price to earnings ratios of 10.0, 11.2, 12.5, and 13.9, at the minimum,
midpoint, maximum, and supermaximum of the range, respectively.
1
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Effect of Conversion Proceeds
At the Minimum of the Conversion Valuation Range
Valuation Date as of February 27, 1998
Northfield Federal Savings
- ------------------------------------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Value $ 3,825,000
Less: Estimated Expenses (362,000)
-----------------
Net Conversion Proceeds $ 3,463,000
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $ 3,463,000
Less: ESOP Contributions (306,000)
RP Contributions (153,000)
-----------------
Net Conversion Proceeds after ESOP & RP $ 3,004,000
Estimated Incremental Rate of Return(1) 3.44%
-----------------
Estimated Additional Income $ 103,368
Less: ESOP Expense (15,810)
RP Expense (18,972)
-----------------
$ 68,586
-----------------
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
-------------------------------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
December 31, 1997 $ 287,000 $ 68,586 $ 355,586
b. Pro Forma Net Worth
December 31, 1997 $ 2,894,000 $ 3,004,000 $ 5,898,000
c. Pro Forma Net Assets
December 31, 1997 $ 36,084,000 $ 3,004,000 $ 39,088,000
(1) Assumes Proceeds can be reinvested at 5.55 percent and earnings taxed at a
rate of 38.0 percent.
2
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Effect of Conversion Proceeds
At the Midpoint of the Conversion Valuation Range
Valuation Date as of February 27, 1998
Northfield Federal Savings
- --------------------------------------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Valuation $ 4,500,000
Less: Estimated Expenses (375,000)
----------------------
Net Conversion Proceeds $ 4,125,000
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $ 4,125,000
Less: ESOP Contributions (360,000)
RP Contributions (180,000)
----------------------
Net Conversion Proceeds after ESOP & RP $ 3,585,000
Estimated Incremental Rate of Return(1) 3.44%
----------------------
Estimated Additional Income $ 123,360
Less: ESOP Expense (18,600)
RP Expense (22,320)
----------------------
$ 82,440
----------------------
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
-------------------------------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
December 31, 1997 $ 287,000 $ 82,440 $ 369,440
b. Pro Forma Net Worth
December 31, 1997 $ 2,894,000 $3,585,000 $ 6,479,000
c. Pro Forma Net Assets
December 31, 1997 $36,084,000 $3,585,000 $39,669,000
(1) Assumes Proceeds can be reinvested at 5.55 percent and earnings taxed at a
rate of 38.0 percent.
3
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Effect of Conversion Proceeds
At the Maximum of the Conversion Valuation Range
Valuation Date as of February 27, 1998
Northfield Federal Savings
- --------------------------------------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Valuation $ 5,175,000
Less: Estimated Expenses (387,000)
----------------------
Net Conversion Proceeds $ 4,788,000
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $ 4,788,000
Less: ESOP Contributions (414,000)
RP Contributions (207,000)
----------------------
Net Conversion Proceeds after ESOP & RP $ 4,167,000
Estimated Incremental Rate of Return(1) 3.44%
----------------------
Estimated Additional Income $ 143,386
Less: ESOP Expense (21,390)
RP Expense (25,668)
----------------------
$ 96,328
----------------------
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
-------------------------------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
December 31, 1997 $ 287,000 $ 96,328 $ 383,328
b. Pro Forma Net Worth
December 31, 1997 $ 2,894,000 $ 4,167,000 $ 7,061,000
c. Pro Forma Net Assets
December 31, 1997 $ 36,084,000 $ 4,167,000 $ 40,251,000
(1) Assumes Proceeds can be reinvested at 5.55 percent and earnings taxed at a
rate of 38.0 percent.
4
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Effect of Conversion Proceeds
At the SuperMax of the Conversion Valuation Range
Valuation Date as of February 27, 1998
Northfield Federal Savings
- --------------------------------------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Valuation $ 5,951,250
Less: Estimated Expenses $ (402,000)
----------------------
Net Conversion Proceeds $ 5,549,250
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $ 5,549,250
Less: ESOP Contributions $ (476,100)
RP Contributions $ (238,050)
----------------------
Net Conversion Proceeds after ESOP & RP $ 4,835,100
Estimated Incremental Rate of Return(1) 3.44%
----------------------
Estimated Additional Income $ 166,376
Less: ESOP Expense $ (24,599)
RP Expense $ (29,518)
----------------------
$ 112,259
----------------------
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
-------------------------------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
December 31, 1997 $ 287,000 $ 112,259 $ 399,259
b. Pro Forma Net Worth
December 31, 1997 $ 2,894,000 $ 4,835,100 $ 7,729,100
c. Pro Forma Net Assets
December 31, 1997 $ 36,084,000 $ 4,835,100 $ 40,919,100
(1) Assumes Proceeds can be reinvested at 5.55 percent and earnings taxed at a
rate of 38.0 percent.
5
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Analysis Sheet
Name of Association: Northfield Federal Savings
Date of Market Prices: February 27, 1998 Maryland Publicly All Publicly
Comparatives Held Thrifts Held Thrifts
------------ ------------ ------------
Symbols Value Mean Median Mean Median Mean Median
------------------------- ---- ------ ---- ------ ---- ------
Price-Earnings Ratio P/E
Last Twelve Months N/A
At Minimum of Range 10.8
At Midpoint of Range 12.2 24.3 20.8 27.5 29.2 21.3 20.6
At Maximum of Range 13.5
At Supermax of Range 14.9
Price-Book Ratio P/B
At Minimum of Range 64.9%
At Midpoint of Range 69.5% 123.9 119.0 178.3 170.6 173.6 159.7
At Maximum of Range 73.3%
At Supermax of Range 77.0%
Price-Asset Ratio P/A
At Minimum of Range 9.8%
At Midpoint of Range 11.3% 21.5 20.3 21.5 17.4 19.1 17.8
At Maximum of Range 12.9%
At Supermax of Range 14.5%
Twelve Mo. Earnings Base Y $ 287,000
Period Ended
December 31, 1997
Book Value B $ 2,894,000
As of December 31, 1997
Total Assets A $ 36,084,000
As of December 31, 1997
Return on Money (1) R 3.44%
Conversion Expense X $ 375,000
Underwriting Commission C 0.00%
Percentage Underwritten S 0.00%
Estimated Dividend
Dollar Amount DA $ 90,000
Yield DY 2.00%
ESOP Contributions P $ 360,000
RP Contributions I $ 180,000
ESOP Annual Expense E $ 18,600
RP Annual Contributions M $ 22,320
Cost of ESOP Borrowings F 0.00%
(1) Assumes Proceeds can be reinvested at 5.55 percent and earnings taxed at a
rate of 38.0 percent.
6
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Analysis Sheet
Calculation of Estimated Value (V) at Midpoint Value
1. V= P/A(A-X-P-I) $ 4,500,000
-------------------------
1-P/A(1-(CxS))
2. V= P/B(B-X-P-I) $ 4,500,000
-------------------------
1-P/B(1-(CxX))
3. V= P/E(Y-R(X+P+I)-(E+M)) $ 4,500,000
---------------------------------
1-P/E(R(1-(CxX))
Value
Estimated Value Per Share Total Shares Date
------------------- ------------- ----------------- --------------------
$4,500,000 $10.00 450,000 February 27, 1998
Range of Value
$4.5 million x 1.15 = $5.175 million or 517,500 shares at $10.00 per share $4.5
million x 0.85 = $3.825 million or 382,500 shares at $10.00 per share
7
EXHIBIT VIII
FERGUSON & COMPANY Exhibit VIII - Reconciliation of Quarterly
- ------------------ Reports to Financial Statements
Net
Income
Year
Equity Ended
at ------------
12-31-97 12-31-97
-------- ------------
($000's)
Amounts in quarterly reports 2,922 153
Adjustments:
Income taxes (20) (20)
Accrued and prepaid expenses (8) (8)
1996 audit adjustments recorded in 1997 20
------------ ------------
Net adjustments (28) (8)
------------ ------------
Equity per financial statements 2,894
============
Net income per
financial statements 145
============
Source: Quarterly reports and financial statements
1