Exhibit 99.4
FELDMAN FINANCIAL ADVISORS, INC.
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1725 K STREET, NW * SUITE 205
WASHINGTON, DC 20006
(202) 467-6862 * FAX (202) 467-6963
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OGDENSBURG FEDERAL SAVINGS
AND LOAN ASSOCIATION
OGDENSBURG, NEW YORK
CONVERSION VALUATION APPRAISAL REPORT
VALUED AS OF SEPTEMBER 4, 1998
PREPARED BY
FELDMAN FINANCIAL ADVISORS, INC.
WASHINGTON, D.C.
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FELDMAN FINANCIAL ADVISORS, INC.
1725 K. STREET, NW SUITE 205
WASHINGTON, DC 20006
(202)467-6862 FAX (202)467-6963
September 4, 1998
Board of Directors
Ogdensburg Federal Savings and Loan Association
825 State Street
Ogdensburg, New York 13669
Gentlemen:
At your request, we have completed and provide an independent appraisal of
the estimated pro forma market value of Ogdensburg Federal Savings and Loan
("Ogdensburg Federal" or the "Association") in connection with the simultaneous
conversion of the Association from the mutual to stock form of organization, the
issuance of the Association's capital stock to Peoples Bankcorp, Inc. (the
"Holding Company"), and the offering of shares of common stock of the Holding
Company (collectively referred to herein as the "Conversion"). This appraisal
report is furnished pursuant to the Association's regulatory filing of the
Application for Approval of Conversion ("Form AC") with the Office of Thrift
Supervision ("OTS").
The valuation is prepared utilizing the guidelines for the valuation of
mutual to stock conversions issued by the OTS. These guidelines require, among
other things, that the appraiser consider the impact of the Conversion on the
financial condition of the Association, the trading valuation characteristics of
comparable institutions, recent conversion offerings, acquisitions in the
Association's market area, and the likely trading price of the newly issued
stock.
Feldman Financial Advisors, Inc. ("Feldman Financial") is a financial
consulting and economic research firm that specializes in financial valuations
and analyses of business enterprises and securities in the thrift, banking, and
mortgage industries. The background of Feldman Financial is presented in
Exhibit I.
In preparing our appraisal, we conducted an analysis of the Association
that included discussions with the Association's management, the Association's
independent auditors, KPMG Peat Marwick LLP, the Association's legal counsel,
Housley Kantarian & Bronstein, P.C., and the Association's offering manager,
Trident Securities, Inc. In addition, where appropriate, we considered
information based on other available published sources that we believe are
reliable; however, we cannot guarantee the accuracy and completeness of such
information.
We also reviewed, among other factors, the economy in the Association's
primary market area and compared the Association's financial condition and
operating performance with that of selected publicly traded thrift institutions.
We reviewed conditions in the securities markets in general and in the market
for thrift institution common stocks in particular.
FEDERAL FINANCIAL ADVISORS, INC.
Board of Directors
Ogdensburg Federal Savings and Loan Association
September 4, 1998
Page Two
Our appraisal is based on the Association's representation that the
information contained in the Form AC and additional evidence furnished to us by
the Association and its independent auditors are truthful, accurate, and
complete. We did not independently verify the financial statements and other
information provided by the Association and its independent auditors, nor did we
independently value the assets or liabilities of the Association. The valuation
considers the Association only as a going concern and should not be considered
as an indication of the liquidation value of the Association.
It is our opinion that, as of September 4, 1998, the aggregate estimated
pro forma market value of the Association was within the valuation range of
$1,275,000 to $1,725,000 with a midpoint of $1,500,000. The valuation range was
based upon a 15 percent decrease from the midpoint to determine the minimum and
a 15 percent increase to establish the maximum. Assuming an additional 15
percent increase above the maximum valuation would result in an adjusted maximum
of $1,983,750.
Our valuation is not intended, and must not be construed, to be a
recommendation of any kind as to the advisability of purchasing shares of common
stock in the Conversion. Moreover, because the 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 stock in the Conversion will thereafter be able to sell such shares at
prices related to the foregoing estimate of the Association's pro forma market
value. Feldman Financial is not a seller of securities within the meaning of
any federal or state securities laws and any report prepared by Feldman
Financial shall not be used as an offer or solicitation with respect to the
purchase or sale of any securities.
The valuation reported herein will be updated as appropriate. These
updates will consider, among other factors, any developments or changes in the
Association's operating performance, financial condition, or management
policies, and current conditions in the securities markets for thrift
institution common stocks. Should any such new developments or changes be
material, in our opinion, to the Conversion valuation of the Association,
appropriate adjustments to the estimated pro forma market value will be made.
The reasons for any such adjustments will be explained in detail at that time.
Respectfully,
FELDMAN FINANCIAL ADVISORS, INC.
By: /s/ Trent R. Feldman
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Trent R. Feldman
President
TABLE OF CONTENTS
TAB PAGE
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INTRODUCTION...................................................... 1
I. CHAPTER ONE -- BUSINESS OF OGDENSBURG FEDERAL
General........................................................... 4
Financial Condition............................................... 8
Income and Expense Trends......................................... 17
Asset and Liability Management.................................... 23
Asset Quality..................................................... 26
Properties........................................................ 31
Subsidiaries...................................................... 32
Market Area....................................................... 33
Summary........................................................... 37
II. CHAPTER TWO COMPARISONS WITH PUBLICLY HELD COMPANIES
General........................................................... 38
Selection Criteria................................................ 39
Recent Financial Comparisons...................................... 43
III. CHAPTER THREE -- MARKET VALUE ADJUSTMENTS
Earnings Prospects................................................ 54
Market Area....................................................... 55
Management........................................................ 55
Dividend Policy................................................... 56
Liquidity of the Issue............................................ 56
Subscription Interest............................................. 57
Stock Market Conditions........................................... 57
Recent Acquisition Activity....................................... 61
New Issue Discount................................................ 63
Adjustments Conclusion............................................ 65
Valuation Approach................................................ 66
Valuation Conclusion.............................................. 67
IV. APPENDIX -- EXHIBITS
I Description of Feldman Financial Advisors, Inc.............. I-1
II-1 Statement of Financial Condition............................ II-1
II-2 Statement of Income......................................... II-2
II-3 Loan Portfolio Composition.................................. II-3
II-4 Net Lending Activity........................................ II-4
II-5 Investment Securities Portfolio............................. II-5
II-6 Deposit Account Distribution................................ II-6
II-7 Borrowing Activity.......................................... II-7
III Market Valuation and Financial Data for All Public Thrifts.. III-1
IV-1 Pro Forma Conversion Assumptions............................ IV-1
IV-2 Pro Forma Valuation Range................................... IV-2
IV-3 Pro Forma Analysis at Midpoint Value........................ IV-3
LIST OF TABLES
TAB PAGE
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I. CHAPTER ONE -- BUSINESS OF OGDENSBURG FEDERAL
Table 1 -- Selected Financial Condition Data...................... 8
Table 2 -- Selected Operations Data............................... 9
Table 3 -- Selected Financial Ratios.............................. 10
Table 4 -- Income Statement Summary............................... 18
Table 5 -- Yield and Cost Summary -- June 30, 1998 and 1997....... 21
Table 6 -- Yield and Cost Summary -- December 31, 1997 and 1996... 22
Table 7 -- NPV Calculation........................................ 24
Table 8 -- Nonperforming Asset Summary............................ 28
Table 9 -- Allowance for Loan Losses.............................. 29
Table 10 -- Allowance for Loan Allocation by Loan Type............. 30
Table 11 -- Key Economic Indicators................................ 35
Table 12 -- Deposit Trends for Ogdensburg and St. Lawrence County.. 36
Table 13 -- Deposit Market Share for St. Lawrence County........... 36
II. CHAPTER TWO -- COMPARISONS WITH PUBLICLY HELD COMPANIES
Table 14 -- Comparative Group Operating Summary.................... 42
Table 15 -- Key Financial Comparisons.............................. 46
Table 16 -- General Financial Performance Ratios................... 48
Table 17 -- Income and Expense Analysis............................ 49
Table 18 -- Yield-Cost Structure and Growth Rates.................. 50
Table 19 -- Balance Sheet Composition.............................. 51
Table 20 -- Regulatory Capital and Credit Risk Ratios.............. 52
III. CHAPTER THREE MARKET VALUE ADJUSTMENTS
Table 21 -- Comparative Stock Market Performance................... 59
Table 22 -- Selected Interest Rate Benchmarks...................... 60
Table 23 -- Recent North Carolina Acquisition Activity............. 62
Table 24 -- Recent Thrift Conversion Activity...................... 64
Table 25 -- Comparative Market Valuation Analysis.................. 68
Table 26 -- Comparative Discount and Premium Analysis.............. 69
FELDMAN FINANCIAL ADVISORS, INC.
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INTRODUCTION
As requested, Feldman Financial Advisors, Inc. ("Feldman Financial") has
prepared an independent appraisal of the aggregate estimated pro forma market
value of Ogdensburg Federal Savings and Loan Association ("Ogdensburg Federal"
or the "Association") in connection with its mutual to stock conversion (the
"Conversion"). The transaction structure will include the formation of the New
York-chartered corporation, Peoples Bankcorp (the "Stock Company"), to be the
holding company for Ogdensburg Federal. The Stock Company will offer shares of
its common stock for sale (the "Stock Offering") to eligible depositors and to
the Association's and Stock Company's employee stock benefit plans in a
Subscription Offering. Shares not subscribed for in the Subscription Offering
will be offered for sale to certain members of the general public in a Community
Offering.
In the course of preparing this appraisal report, we reviewed and discussed
with the Association's management, and with the Association's independent
auditors, KPMG Peat Marwick LLP, the audited financial statements of the
Association's operations for the years ended December 31, 1996 and 1997 and the
unaudited financial statements for the six months ended June 30, 1997 and 1998.
We also discussed matters related to the Conversion with the Association's legal
counsel, Housley Kantarian & Bronstein, P.C., and with the Association's
offering manager, Trident Securities, Inc. We also reviewed and discussed with
management other financial matters of the Association.
Where appropriate, we considered information based upon other available
public sources, which we believe to be reliable; however, we cannot guarantee
the accuracy or completeness of such information. We visited the Association's
primary market area and examined the prevailing
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FELDMAN FINANCIAL ADVISORS, INC.
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economic conditions. We also examined the competitive environment within which
the Association operates and assessed the Association's relative strengths and
weaknesses.
We examined and compared the Association's financial performance with
selected segments of the thrift industry and selected publicly traded thrifts.
We reviewed conditions in the securities markets in general and the market for
thrift institution common stocks in particular. We included in our analysis an
examination of the potential effects of the Conversion on the Association's
operating characteristics and financial performance as they relate to the
estimated pro forma market value of the Association.
In preparing our valuation, we have relied upon and assumed the accuracy
and completeness of financial and statistical information provided by the
Association and its independent auditors. We did not independently verify the
financial statements and other information provided by the Association and its
independent auditors, nor did we independently value the assets or liabilities
of the Association. The valuation considers the Association only as a going
concern and should not be considered as an indication of the liquidation value
of the Association.
OUR VALUATION IS NOT INTENDED, AND MUST NOT BE CONSTRUED, TO BE 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
ON 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 REORGANIZATION WILL THEREAFTER BE ABLE TO SELL
SUCH SHARES AT PRICES RELATED TO THE FOREGOING VALUATION OF THE PRO FORMA MARKET
VALUE THEREOF. FELDMAN FINANCIAL IS NOT A SELLER OF SECURITIES WITHIN THE
MEANING OF ANY FEDERAL AND STATE SECURITIES LAWS AND ANY REPORT PREPARED BY
FELDMAN
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FELDMAN FINANCIAL ADVISORS, INC.
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FINANCIAL SHALL NOT BE USED AS AN OFFER OR SOLICITATION WITH RESPECT TO THE
PURCHASE OR SALE OF ANY SECURITIES.
The valuation reported herein will be updated as appropriate. These
updates will consider, among other factors, any developments or changes in the
Association's financial performance or management policies, and current
conditions in the securities market for thrift institution common stocks.
Should any such developments or changes be material, in our opinion, to the
Conversion valuation of the Association, appropriate adjustments to the
estimated pro forma market value will be made. The reasons for any such
adjustments will be explained in detail at that time.
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FELDMAN FINANCIAL ADVISORS, INC.
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I. BUSINESS OF OGDENSBURG FEDERAL
GENERAL
Ogdensburg Federal was organized originally in 1888. The Association
currently conducts its business from one full-service banking office located in
Ogdensburg, New York. The Association is subject to regulation by the Office of
Thrift Supervision ("OTS") and the Federal Deposit Insurance Corporation
("FDIC"), the insurer of its deposit accounts up to applicable limits through
the Savings Association Insurance Fund ("SAIF"). The Association is a member of
the Federal Home Loan Association ("FHLB") of New York. As of June 30, 1998,
the Association had total assets of $24.2 million, total deposits of $22.4
million, and total equity of $1.6 million or 6.80% of total assets.
Ogdensburg Federal is a community and customer oriented financial
institution chartered to profitably provide financial services to individuals,
families and small businesses. The Association has historically placed an
emphasis on residential mortgage lending, primarily originating high quality
one-to-four family fixed and adjustable rate mortgage loans. The Association
offers conforming residential loans for portfolio retention. In addition, the
Association offers consumer auto loans on one to two year old cars and home
equity loans. To a lesser degree, it also originates commercial real estate
loans, deposit account loans, and commercial business loans. Ogdensburg Federal
has funded its lending and investment activity primarily with deposit accounts
and has not utilized borrowed funds in recent years.
Of the Association's loan portfolio at June 30, 1998, 65.5% consisted of
loans secured by one-to-four family residential properties, 4.9% were secured by
non-residential real estate, and 29.6% were commercial and consumer loans,
primarily consumer auto loans. The Association also invests in securities and
other short-term investments. At June 30, 1998, investment
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FELDMAN FINANCIAL ADVISORS, INC.
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securities and short-term investments amounted to $4.8 million or 19.7% of the
Association's assets.
The Association offers traditional deposit accounts consisting of savings
and club accounts, certificates of deposit, money market accounts, NOW accounts,
and demand accounts. The Association operates one full-service banking office
in Ogdensburg and the majority of the Association's deposits are gathered from
Ogdensburg and the surrounding communities. The Association's primary lending
area is Ogdensburg, and the surrounding communities of Lisbon, Oswegatchie,
Madrid, Morristown, Heuvelton, Hammond, Depeyster, Macomb, and Waddington and
the village of Rennsselaer Falls, all of which are located within St. Lawrence
County. Because a significant concentration of the Association's assets are
secured by residential real estate located in its primary lending territory, the
Association's asset quality is highly dependent upon the real estate market
conditions in the local economy. As the economic environment of Ogdensburg has
remained relatively constant through the 1990's, the Association's level of non-
performing loans has continued to remain relatively low and manageable and was
1.41% of total assets as of June 30. 1998.
Ogdensburg Federal has generated relatively low profitability returns over
the past few years. Net income for six months ended June 30, 1998, net income
was $72,000, or 0.61% of average assets and for fiscal 1997 was $88,000, or
0.39% of average assets. Net income of $88,000 for fiscal 1998 was an
improvement compared to net income of $8,000 for fiscal 1996. Included in
earnings for fiscal 1996 was a one-time charge of $128,000 ($94,000 after-taxes)
for the special SAIF assessment. Adjusting for this expense, the Association
would have earned approximately $102,000, or 0.51% of average assets.
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FELDMAN FINANCIAL ADVISORS, INC.
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The return for the six months ended June 30, 1998 was relatively flat as
compared to the six months ended June 30, 1997, decreasing by $5,000, from the
$77,000 recorded for the six months ended June 30, 1997. The decrease in net
income was due primarily to an increased level of non-interest expenses,
partially offset by an increased level of noninterest income.
The Association's capital has substantially exceeded all applicable
regulatory capital requirements and has increased from $1.48 million, or 6.71%
of assets, at December 31, 1997, to $1.65 million, or 6.80% of assets, at
June 30, 1998.
The Association seeks to generate future earnings growth through continued
emphasis on residential real estate lending. Management intends to monitor
economic conditions in the Association's market area and adjust the mix of its
lending activities in response to changing conditions in order to maintain sound
asset quality and profitability. Management believes opportunities for growth
exist in its market area and plans to manage growth to ensure compliance with
regulatory capital requirements and to achieve overall strategic objectives,
without unduly increasing the risk profile of the balance sheet. Management
believes that the Association can continue to meet its financial and strategic
objectives by seeking business primarily within its market area.
The Board of Directors of Ogdensburg Federal has determined that the
Conversion is in the best interest of the Association and its customers, and has
discerned several business purposes for effecting the proposed Conversion. The
Conversion will structure the Association in the stock form, which is used by
commercial banks, most major business corporations, and an increasing majority
of savings institutions. Formation of the Stock Company will permit the
Association to issue common stock, which is a source of capital not available to
mutual institutions.
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FELDMAN FINANCIAL ADVISORS, INC.
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The ability to issue common stock will enable the Association to establish
stock benefit plans for management and employees, thereby improving the
Association's capacity to attract and retain qualified personnel. The
additional capital, along with the holding company organizational structure,
will help to facilitate expansion through mergers and acquisitions.
The increased capital resulting from the Stock Offering will enable the
Association to take advantage of additional lending opportunities within its
market area. Based on the Association's expanded capital base, the Association
will be able to increase its lending limits and borrower concentrations without
jeopardizing credit risk management. Management does not anticipate that the
mix of loans that will be originated will change after Conversion although the
Association will consider adding products and services as the competition within
the market demands. The Association will implement any such growth and
expansion plans with a disciplined and deliberate approach.
The remainder of Chapter I examines in more detail the trends addressed in
this section, including the impact of changes in the Association's economic and
competitive environment, and recent management initiatives. The discussion is
supplemented by the exhibits in the Appendix. Exhibit II-1 summarizes the
Association's statements of financial condition as of June 30, 1997 and 1998 and
for the fiscal years ending December 31, 1996 and 1997. Exhibit II-2 presents
the Association's statements of income for the six-months ended June 30, 1997
and 1998 and the fiscal years ended December 31, 1996 and 1997.
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FELDMAN FINANCIAL ADVISORS, INC.
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FINANCIAL CONDITION
Table 1 presents selected data concerning Ogdensburg Federal's financial
position as of the six-month period ended June 30, 1998 and the fiscal years
ended December 31, 1996 and 1997. Table 2 displays information concerning
results of operations for the six month periods ending June 30, 1998 and 1997
and for the fiscal years ended December 31, 1997 and 1996 and Table 3 displays
selected ratios for the same periods as Table 2.
Table 1
SELECTED FINANCIAL CONDITION DATA
At June 30, 1998 and December 31, 1997 and 1996
(Dollars in Thousands)
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At At December 31,
June 30, ----------------------------
1998 1997 1996
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Total assets $24,247 $23,402 $21,998
Loans, net 18,698 16,668 15,359
Cash and cash equivalents 1,239 1,227 1,571
Securities:
Available-for-sale --- 737 804
Held-to-maturity 3,546 4,031 3,561
Total deposits 22,356 21,765 20,489
Total equity 1,648 1,577 1,477
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Source: Ogdensburg Federal, preliminary prospectus.
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FELDMAN FINANCIAL ADVISORS, INC.
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Table 2
SELECTED OPERATIONS DATA
Six Months Ended June 30, 1998 and 1997
and Years Ended December 31, 1997 and 1996
(Dollars in Thousands)
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Six Months Ended Year Ended
June 30, December 31,
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1998 1997 1997 1996
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Interest income $882 $812 $1,662 $1,592
Interest expense 522 477 998 955
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Net interest income 360 335 664 637
Provision for loan losses 3 --- 57 ---
Net interest income after
provision for loan losses 357 335 607 637
Non-interest income 22 20 44 30
Non-interest expense 281 250 525 656
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Income before income tax expense 98 105 126 11
Income tax expense 26 28 38 3
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Net income $ 72 $ 77 $ 88 $ 11
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Source: Ogdensburg Federal, preliminary prospectus.
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FELDMAN FINANCIAL ADVISORS, INC.
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Table 3
SELECTED FINANCIAL RATIOS
Six Months Ended June 30, 1998 and 1997
and Years Ended December 31, 1997 and 1996
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Six Months Ended Year Ended
June 30, December 31,
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1998 1997 1997 1996
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PERFORMANCE RATIOS:
Return on average assets (net
income divided by average
total assets) 0.61% 0.69% 0.39% 0.04%
Return on average equity (net
income divided by average
total assets) 9.04 10.42 5.82 0.53
Net interest rate spread
(combined weighted average interest
rate earned less combined weighted
average interest rate cost) 2.97 2.96 2.86 2.90
Average interest-earning assets
to average interest-bearing
liabilities 105.36 104.73 104.62 104.15
Noninterest expense to average
total assets 1.18 1.12 2.30 3.00
ASSET QUALITY RATIOS:
Nonperforming assets to total
assets 1.41 0.11 1.42 0.04
Nonperforming loans to total loans 1.61 0.16 1.74 0.06
Allowance for loan losses to
total loans 0.87 0.72 0.97 0.75
Allowance for loan losses to
nonperforming loans 54.46 438.46 55.97 1288.89
Provision for loan losses to
loans, net 0.02 --- 0.34 ---
Net charge-offs to average
loans outstanding 0.01 0.01 0.06 ---
CAPITAL RATIOS:
Equity to total assets 6.80 6.80 6.74 6.71
Average equity to average total
assets 6.72 6.64 6.64 6.96
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Source: Ogdensburg Federal, preliminary prospectus.
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FELDMAN FINANCIAL ADVISORS, INC.
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Asset Composition
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The Association's asset base grew 10.2% between December 31, 1996 and
June 30, 1998. Total assets increased by $2.2 million over this one-and-a-half
year period, primarily as a result of the expanding loan portfolio. The
Association's growth was internally generated without augmentation from mergers
or acquisitions of other company operations. The ratio of net loans to assets
increased from 69.8% at December 31, 1996, to 77.1% at June 30, 1998. During the
same time period the ratio of cash and securities to assets decreased from 27.0%
to 19.7%.
The Association's loan portfolio is predominantly secured by real estate
properties. As displayed in Exhibit II-3, the Association's net loan portfolio
at June 30, 1996 totaled $18.7 million, of which 65.6% ($12.4 million) were
mortgage loans secured by one-to-four family residences, 3.8% ($726,000) were
secured by commercial real estate, 17.5% ($3.3 million) were automobile loans,
and 5.6% ($1.1 million) were home equity loans.
Between December 31, 1996, and June 30, 1998, the Association's one-to-four
family loans increased by $0.5 million and automobile loans by $1.9 million.
Exhibit II-4 summarizes the Association's net lending activity during recent
periods.
The Association originates both fixed rate and adjustable rate mortgage
loans. One-to-four family mortgage loans are generally originated in amounts up
to 80.0% of the lesser of appraised value or purchase price with a maximum loan
amount of $200,000 and a maximum term of 30 years. The Association also offers
a first-time homebuyer program pursuant to which loans may be made in amounts up
to 90.0% of the lesser of appraised value or purchase price with the same
maximum loan amount and term as other mortgage loans.
Adjustable rate loans originated by the Association are based upon an index
plus a stated margin and provide for periodic interest rate adjustments upward
or downward of up to 2.0% per
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FELDMAN FINANCIAL ADVISORS, INC.
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year. Generally, adjustable rate loans reprice very year and provide for terms
up to 30 years with most loans having terms of between 10 and 20 years.
Adjustable rate loans decrease the risk associated with changes in interest
rates by periodically repricing, but involve other risks because as interest
rates increase, the underlying payments by the borrower increase, thus
increasing the potential for default by the borrower. Upward adjustment of the
contractual interest rate is also limited by the maximum periodic and lifetime
interest rate adjustment permitted by the loan documents, and, therefore is
potentially limited in effectiveness during periods of rapidly rising interest
rates.
The Association originates a limited number of residential construction
loans on one- to four-family residential properties to individuals who will be
the owner and occupant upon completion of the construction. Borrowers are
required to pay interest during the construction period which may not last
beyond twelve months. Upon completion of the construction, the loan converts to
a fully amortizing mortgage loans. Loan proceeds are disbursed according to a
draw schedule and the Association inspects the progress of the construction
before additional funds are disbursed. Construction loans may be fixed or
adjustable rate.
Construction lending is generally considered to involve a higher degree of
credit risk than long term financing of residential properties. Risk of loss on
a construction loan is dependent largely upon the accuracy of the initial
estimate of the property's value at completion of the construction and the
estimated cost of construction. If the estimate of construction cost and the
marketability of the property upon completion of the project prove to be
inaccurate, the Association may be compelled to advance additional funds to
complete the construction. Furthermore, if the final value of the completed
property is less than the estimated amount, the value of the property might be
insufficient to assure the repayment of the loan.
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FELDMAN FINANCIAL ADVISORS, INC.
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The Association originates limited commercial real estate loans secured by
small apartment buildings, office buildings, and other commercial properties.
Loan amounts do not exceed 75% of the appraised value of the property.
Commercial real estate lending entails significant additional risks compared to
residential property lending. These loans typically involve large loan balances
to single borrowers or groups of related borrowers. The repayment of these
loans typically is dependent on the successful operation of the real estate
project securing the loan. These risks can be significantly affected by supply
and demand conditions in the market for office and retail space and may also be
subject to adverse conditions in the economy. To minimize these risks, the
Association generally limits this type of lending to its market area and to
borrowers who are known to the Association.
The Association engages in a limited amount of commercial business lending
to benefit from the higher fees and interest rates and the shorter term to
maturity. Commercial business loans consist of equipment, lines of credit and
other business purpose loans. The loans are generally secured by either the
underlying properties or by the personal guarantee of the borrower.
Unlike residential mortgage loans, which are generally made on the basis of
the borrower's ability to make repayment from his or her employment and other
income and which are secured by real property whose value tends to be more
readily ascertainable, commercial business loans typically are made on the basis
of the borrower's ability to make repayment from the cash flow of the borrower's
business. As a result, the availability of funds for the repayment of
commercial business loans may be substantially dependent on the success of the
business itself and the general economic environment.
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FELDMAN FINANCIAL ADVISORS, INC.
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The Association offers various types of consumer loans in order to provide
a wider range of financial services to their customers. Consumer loans consist
of automobile, home equity lines of credit, passbook and personal loans. Home
equity lines of credit have a maximum draw period of ten years with a maximum
term of 20 years. Passbook and certificate of deposit secured loans are offered
up to the maximum of the deposit balance and are due on demand. The Association
offers loans for both new and used automobiles with a maximum term of five years
and maximum loan amounts of $30,000.
Consumer loans may entail greater risk than residential mortgage loans,
particularly in the case of consumer loans that are unsecured or secured by
assets that depreciate rapidly. Repossessed collateral for a defaulted consumer
loan may not be sufficient for repayment of the outstanding loan, and the
remaining deficiency may not be collectible.
Exhibit II-5 displays the composition of the Association's investment
portfolio. The Association determines the level of investment securities
depending upon several factors, including: (1) the yields on investment
alternatives, (2) management's judgment as to the attractiveness of the yields
then available in relation to other opportunities, (3) expectation of future
yield levels, and (4) management's projections as to the short-term demand for
funds to be used in loan origination and other activities. As of June 30, 1998,
the Association's investment portfolio policy allowed investments in instruments
such as: (1) U.S. treasury obligations, (2) U.S. federal agency or federally
sponsored agency obligations, (3) local municipal obligations, (4) mortgage-
backed securities, (5) bankers' acceptances, (6) time certificates, (7) federal
funds, including FHLB overnight and term deposits (up to six months), and (8)
investment grade corporate bonds, commercial paper and mortgage derivative
products.
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FELDMAN FINANCIAL ADVISORS, INC.
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To supplement lending activities, The Association invests in mortgage-
backed securities. Mortgage-backed securities can serve as collateral for
borrowings and, through repayments, as a source of liquidity. The Association's
mortgage-backed securities portfolio consists of participations or pass-through
certificates issued by the Government National Mortgage Association. The
mortgage-backed securities portfolio was classified as "held-to-maturity" at
June 30, 1998.
Source of Funds
- ---------------
Deposits are the primary source of the Association's funds for lending and
other investment purposes. Funds are also derived from the receipt of payments
on loans and prepayment of loans and, to a much lesser extent, maturities of
investment securities and mortgage-backed securities, borrowings and operations.
Scheduled loan principal repayments are a relatively stable source of funds,
while deposit inflows and outflows and loan prepayments are significantly
influenced by general interest rates and market conditions.
As of June 30, 1998, deposits totaled $22.4 million, representing 98.9% of
total liabilities. Exhibit II-6 presents a summary of the Association's deposit
portfolio as of June 30, 1998.
Consumer and commercial deposits are attracted principally from within the
Association's market area through the offering of a selection of deposit
instruments including regular savings accounts, money market accounts, and term
certificate accounts. Deposit account terms vary according to the minimum
balance required, the time period the funds must remain on deposit, and the
interest rate. Interest rates paid on deposits are set weekly by the
Association's senior management. Interest rates are determined based upon
liquidity requirements, interest rates paid by the Association's competitors,
growth goals and applicable regulatory restrictions
-15-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
and requirements. Time certificates in amounts of $100,000 or more constituted
$1.5 million, or 6.51%, of the total deposit portfolio.
Advances (borrowings) may be obtained from the FHLB of New York to
supplement the Association's supply of lendable funds. Advances from the FHLB
of New York are typically secured by a pledge of the Association's stock in the
FHLB of New York, a portion of the first mortgage loan portfolio and other
assets. Each FHLB credit program has its own interest rate, which may be fixed
or adjustable, and a range of maturities. As of June 30, 1998, the Association
did not have any borrowings outstanding.
Equity Capital
- --------------
The Association's equity capital was $1.6 million, or 6.80% of total
assets, at June 30, 1998. Equity increased slightly from $1.5 million as of
December 31, 1996. For regulatory purposes at June 30, 1998, the Association's
core capital ratio measured 6.8% and its total risk-based capital ratio was
13.2%. The Association not only met its minimum regulatory capital requirements
but also surpassed the levels necessary to qualify for the designation of well
capitalized.
-16-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
INCOME AND EXPENSE TRENDS
Net income for the six months ended June 30, 1998 was relatively flat as
compared to the six months ended June 30, 1997, decreasing by $5,000 from
$77,000 for the six months ended June 30, 1997 to $72,000 for the six months
ended June 30, 1998. The decrease in net income was due primarily to an
increased level of non-interest expenses, partially offset by an increased level
of net interest income. Table 4 on page 18 details the Association's earnings
for the six month periods ending June 30, 1998 and 1997 and for the fiscal years
ended December 31, 1997 and 1996.
Net interest income increased $25,000, or 7.46%, from $335,000 for the six
months ended June 30, 1997 to $360,000 for the six months ended June 30, 1998.
The increase was due mainly from growth in the Association's loan portfolio.
The average balance of loans outstanding during the six months ended June 30,
1998 was $17.2 million as compared to $15.3 million during the first six months
of 1997. Interest expense also increased over these six-month periods due
primarily to an increase in both the average balance of deposits during the
period and the average cost of deposits. For the first six months of 1998,
total deposits averaged $21.3 million as compared to $20.2 million for the first
six months of 1997. The average costs of such deposits amounted to 4.92% for
the 1998 period, a 16 basis point increase from 4.76% for the first half of
1997.
During the six months ended June 30, 1998, the Association made a $3,000
provision for loan losses compared to no provision for the comparable period in
fiscal 1997. Net charge-offs for the six months ended June 30, 1998 amounted to
$2,000.
-17-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Table 4
INCOME STATEMENT SUMMARY
Six Months Ended June 30, 1998 and 1997
and Years Ended December 31, 1997 and 1996
(Dollars in Thousands)
======================================================================================================
Six Months Ended Year Ended
June 30, December 31,
--------------------------- ---------------------------
1998 1997 1997 1996
- ------------------------------------------------------------------------------------------------------
Total interest income $822 $812 $1,662 $1,592
Total interest expense 522 477 998 955
---- ---- ------ ------
Net interest income 360 335 664 637
Provision for loan losses 3 -- 57 --
---- ---- ------ ------
Net interest income after
provision 357 335 607 637
Service charges 14 11 30 14
Net gain on sale of securities 1 -- -- --
Other 7 9 14 16
---- ---- ------ ------
Total non-interest income 22 20 44 30
Salaries and benefits 140 128 258 258
Directors fees 31 32 59 54
Building, occupancy and equipment 27 32 73 59
Data processing 15 14 28 27
Postage and supplies 12 8 25 23
Deposit insurance premium 7 4 11 174
Insurance 5 7 17 14
Other 44 25 54 47
---- ---- ------ ------
Total non-interest expense 281 250 525 656
Income before taxes 98 105 126 11
Income tax expense 26 28 38 3
---- ---- ------ ------
Net income $ 72 $ 77 $ 88 $ 8
==== ==== ====== ======
=======================================================================================================
Source: Ogdensburg Federal
-18-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Noninterest income increased $2,000 over the comparative six-months periods
due to increases in the fees earned on loans and other income offset by
adecrease in other noninterest income.
Noninterest expense increased by $31,000, or 12.40%, for the six months
ended June 30, 1998 compared to the same period in fiscal year 1997 due to
increases in compensation and related expenses, deposit insurance, postage and
supplies and other expenses, offset by decreases in building, occupancy and
equipment expense and insurance.
The provision for income tax decreased $2,000 over the comparable period
due to a decrease in pre-tax income. Effective tax rates for the six months
ended June 30, 1998 and 1997 were 26.5% and 26.7%, respectively.
Net income increased $80,000 from $8,000 for the fiscal year ended
December 31, 1996 to $88,000 for the fiscal year ended December 31, 1997. The
primary reason for the increase was due to the absence of any SAIF special
assessment during the fiscal 1997 year. During the year ended December 31, 1996,
all thrift institutions were required to pay a special assessment in order to
recapitalize the SAIF, the FDIC fund that insures the Association's deposits.
The special assessment amounted to $128,000 and was paid during the quarter
ended December 31, 1996.
Net interest income increased from $637,000 for fiscal year 1996 to
$664,000 for fiscal year 1997. The $27,000 increase was primarily due to an
increase in the average balance of the loan and securities portfolios. During
the year ended December 31, 1997, the average balance of the loan portfolio
increased by $823,000, or 5.49%, and the average balance of the securities
portfolio increased by $249,000, or 6.40%, as compared to the year ended
December 31, 1996.
-19-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Total interest expense also increased during the fiscal year by $43,000 due to
an increase in the volume of deposits, primarily time certificates.
During fiscal 1997, the Association decided to pursue increases in the
automobile loan portfolio which are believed to have greater risk than one- to
four-family mortgage lending. For this reason, the Association recorded a
$57,000 provision for loan losses as compared to no provision for the previous
fiscal year.
Noninterest income increased from $30,000 for fiscal year 1996 to $44,000
for fiscal year 1997 due primarily to a $16,000 increase in fees earned on
deposit accounts.
For fiscal 1997, noninterest expenses were $525,000 as compared to $656,000
for fiscal year 1996. The decline in this expense level was primarily due to
the absence of any special SAIF assessment in the 1997 period. During fiscal
year 1996, the Association was required to pay a special assessment of $128,000
to help recapitalize the SAIF. The decline was offset by increases of $14,000
in building, occupancy and equipment expense and $7,000 in other miscellaneous
expenses. As a result of the SAIF recapitalization, deposit insurance premiums
declined significantly, resulting in a reduction of $163,000 from 1996 to 1997.
Annual deposit insurance premiums are expected to remain at the current level,
0.064% of total assessable deposits, in future periods though there can be no
assurance in this regard.
Income tax expense for fiscal 1997 amounted to $38,000 as compared to
$3,000 for fiscal year 1996. The $35,000 increase was directly attributable to
the increased level of pre-tax income in 1997 as compared to 1996. Effective
tax rates for fiscal tears 1997 and 1996 were 30.1% and 27.3%, respectively.
Tables 5 and 6 details the Association's yield/cost information for the six
month periods ended June 30, 1998 and 1997 and for the fiscal years ended
December 31, 1997 and 1996.
-20-
Table 5
YIELD AND COST SUMMARY
At June 30, 1998 and
Six Months Ended June 30, 1998 and 1997
(Dollars in Thousands)
==================================================================================================================================
Six Months Ended June 30,
----------------------------------------------------------------
At June 30, 1998 1997
1998 ------------------------------- ------------------------------
------------------ Average Average
Yield/ Average Yield/ Average Yield/
Balance Cost Balance Interest Cost Balance Interest Cost
------- -------- ------- --------- ------- ------- -------- -------
Interest-earning assets:
Loans $18,698 8.11% $17,151 $727 8.55% $15,341 $645 8.48%
Securities 3,546 5.69 4,498 127 5.69 4,683 132 5.68
Other short-term investments 756 5.78 769 28 7.34 1,123 35 6.28
------- ------- ---- ------- ----
Total interest-earning assets 23,000 7.66 22,418 882 7.93 21,147 812 7.74
Non-interest-earning assets 1,247 1,373 1,177
------- ------- -------
Total assets $24,247 $23,791 $22,324
======= ======= =======
Interest-bearing liabilities:
Savings and club accounts $ 3,131 3.09 $ 2,997 $ 40 2.69 $ 2,739 $ 39 2.87
Time certificates 16,519 5.80 16,218 465 5.78 15,450 420 5.48
NOW and money market accounts 1,971 1.74 2,062 17 1.66 2,002 18 1.81
Borrowings -- -- -- -- -- -- -- --
------- ------- ---- ------- ----
Total interest-bearing liabilities 21,621 5.04 21,277 522 4.92 20,191 477 4.76
Non-interest-bearing liabilities 978 916 651
------- ------- -------
Total liabilities 22,599 22,193 20,842
Total equity 1,648 1,598 1,482
------- ------- -------
Total liabilities and equity $24,247 $23,791 $22,324
======= ======= =======
Net interest income $360 $335
==== ====
Net interest rate spread 2.62% 3.01% 2.98%
==== ==== ====
Net yield on interest-earning assets 3.24% 3.19%
==== ====
Average interest-earning assets to
average interest-bearing liabilities 1.06x 1.05x 1.05x
==== ==== ====
================================================================================
Source: Ogdensburg Federal, preliminary prospectus.
- 21 -
Table 6
YIELD AND COST SUMMARY
Years Ended December 31, 1997 and 1996
(Dollars in Thousands)
===============================================================================================================
Year Ended December 31,
---------------------------------------------------------------
1997 1996
------------------------------ ------------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------- -------- ------ ------- -------- ------
Interest-earning assets:
Loans $15,824 $1,330 8.40% $15,001 $1,266 8.44%
Securities 4,887 277 5.67 4,593 260 5.66
Other short-term investments 835 55 6.59 1,024 66 6.45
------- ------ ------- ------
Total interest-earning assets 21,546 1,662 7.71 20,618 1,592 7.72
Non-interest-earning assets 1,234 1,256
------- -------
Total assets $22,780 $21,874
======= =======
Interest-bearing liabilities:
Savings and club accounts $ 2,747 $ 79 2.88 $ 2,908 $ 86 2.96
Time certificates 15,824 883 5.58 14,867 832 5.60
NOW and money market accounts 2,024 36 1.78 2,016 36 1.79
Borrowings -- -- -- 5 1 5.96
------- ------ ------- ------
Total interest-bearing liabilities 20,595 998 4.85 19,796 955 4.82
Non-interest-bearing liabilities 672 555
------- -------
Total liabilities 21,267 20,352
Total equity 1,502 1,523
------- -------
Total liabilities and equity $22,769 $21,874
======= =======
Net interest income $ 664 $ 637
====== ======
Net interest rate spread 2.86% 2.90%
==== ====
Net yield on interest-earning assets 3.08% 3.09%
==== ====
Average interest-earning assets to
average interest-bearing liabilities 1.05x 1.04x
==== ====
================================================================================
Source: Ogdensburg Federal, preliminary prospectus.
- 22 -
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
ASSET AND LIABILITY MANAGEMENT
Assets and liabilities may be analyzed by examining the extent to which
assets and liabilities are interest-rate sensitive and by monitoring the
expected effects of interest rate changes on the Association's net portfolio
value.
An asset is interest-rate sensitive within a specific time period if it
will mature or reprice within that time period. If assets mature more quickly
or to a greater extent than liabilities, the Association's net portfolio value
and net interest income would tend to increase during periods of rising interest
rates but decrease during periods of falling interest rates. Conversely, if
assets mature or reprice more slowly or to a lesser extent than liabilities, the
Association's net portfolio value and net interest income would tend to decrease
during periods of rising interest rates but increase during periods of falling
interest rates. The Association's policy has been to mitigate interest rate
risk inherent in the historical savings association business of originating
long-term loans funded by short-term deposits by pursuing certain strategies
designed to decrease the vulnerability of earnings to material and prolonged
changes in interest rates.
To manage interest rate risk, the Association stresses the origination of
adjustable rate loans. At June 30, 1998, the average weighted term to maturity
of the mortgage loan portfolio was approximately 13.6 years and the weighted
average term of time certificates was slightly less than one year.
In recent years, the Association has measured interest rate sensitivity by
computing the "gap" between the assets and liabilities which were expected to
mature or reprice within certain time periods, based upon assumptions regarding
loan prepayment and deposit decay rates formerly provided by the OTS. However,
the OTS now measures an institution's interest rate risk by computing the amount
by which the net present value of cash flows from assets, liabilities
23
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
and off balance sheet items (the institution's net portfolio value or "NPV")
would change in the event of a range of assumed changes in market interest
rates. These computations estimate the effect on an institution's NPV from
instantaneous and permanent 1% to 4% (100 to 400 basis points) increases and
decreases in market interest rates
Table 7 presents the Association's NPV at June 30, 1998 as calculated by
the OTS. As shown by the table, the Association's current NPV position is more
sensitive to decreases in interest rates than to increases in interest rates due
to the shorter maturities of its liability portfolio.
Table 7
NPV CALCULATION
At June 30, 1998
(Dollars in Thousands)
==========================================================================================================
NPV as % of
Change Portfolio Value of Assets
In Net Portfolio Value -----------------------------------
Rates ----------------------------------- Basis
$ Amount $ Change % Change NPV Ratio Point Change
- ----------------------------------------------------------------------------------------------------------
+400 bp 1,433 (530) (27)% 6.06% (192) bp
+300 bp 1,618 (345) (18) 6.76 (122) bp
+200 bp 1,774 (188) (10) 7.33 (65) bp
+100 bp 1,891 (71) (4) 7.74 (23) bp
0 bp 1,962 -- -- 7.98 -- bp
-100 bp 2,076 114 6 8.36 (39) bp
-200 bp 2,232 269 14 8.89 (92) bp
-300 bp 2,409 447 23 9.49 (151) bp
-400 bp 2,642 680 35 10.27 (229) bp
==========================================================================================================
Source: Ogdensburg Federal, preliminary prospectus
24
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
The Board of Directors has established a policy setting forth the maximum
NPV variances as a result of such instantaneous and permanent changes in
interest rates. At June 30, 1998, the Association's interest rate sensitivity
was within the policy established by the Board.
The Board of Directors reviews asset and liability management policies.
The Board of Directors meets regularly to review interest rate risk and trends,
as well as liquidity and capital ratios and requirements. Management
administers the policies and determinations of the Board of Directors with
respect to the Association's asset and liability goals and strategies. The
Association expects asset and liability policies and strategies will continue as
described so long as competitive and regulatory conditions in the financial
institution industry and market interest rates continue as they have in recent
years.
25
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
ASSET QUALITY
In order to effectively monitor problem loans, the Board of Directors
is informed on a monthly basis. Problem loans are generally placed on non-
accrual status when the loan becomes more than 90 days delinquent or when the
collection of additional interest is doubtful.
The Association's ratio of nonperforming assets to total assets
increased from 0.04% at December 31, 1996 to 1.41% at June 30, 1998. The
increase in nonperforming assets was attributable to the Association's $269,000
participation in a $3.2 million loan originated by TASCO being placed on
nonaccrual status during fiscal year 1997. Total nonperforming assets were
$343,000 as of June 30, 1998. The Association's real estate owned ("REO") was
$40,000 as of the same date. Subsequent to June 30, 1998, this property was
sold for $30,000.
The Association's allowance for loan losses totaled $165,000, or 0.87%
of net loans and 54.5% of nonperforming loans at June 30, 1998. The balance of
the allowance for loan losses increased by $49,00 since December 31, 1996.
OTS regulations provide for a classification system for problem assets of
savings associations which covers all problem assets. Under this classification
system, problem assets are classified as "substandard," "doubtful," or "loss."
An asset is qualified as substandard if it is inadequately protected by the
current net worth and paying capacity of the borrower or the collateral pledged,
if any. Substandard assets include those characterized by the "distinct
possibility" that the Association will sustain "some loss" if the deficiency is
not corrected. Assets classified as doubtful have all the weaknesses inherent
in those classified as substandard, with the added characteristic that the
weakness present make "collection or liquidation in full, on the basis of
currently existing facts, conditions, and, values "highly questionable and
improbable." Assets classified as loss are those considered "uncollectible" and
of such little
26
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
value that their continuance as assets without the establishment of a specific
loss reserve is not warranted. Based on its internal asset quality rating system
pursuant to OTS regulations, the Association had designated as of June 30, 1998
outstanding loans of $74,000 as substandard and no assets were classified as
special mention, doubtful or loss. Assets may be designated as "special mention"
because of a potential weakness that does not currently warrant classification
in one of the aforementioned categories.
Real estate acquired in settlement of loans is carried at the lower of the
unpaid loan balance or fair value less estimated costs to sell. Write-downs
from the unpaid loan balance to fair value at the time of foreclosure are
charged to allowance for loan loss. Subsequent write-downs to fair value, net
of disposal costs, are charged to other expenses.
Table 8 on page 28 sets forth information regarding nonaccrual loans and
real estate owned. As of the dates indicated, no loans were categorized as
troubled debt restructurings within the meaning of SFAS 114.
Table 9 on page 29 sets forth an analysis of the Association's allowance
for loan losses for the periods indicated and Table 10 on page 30 details the
Association's allowance for loan loss allocation by loan type.
27
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Table 8
NONPERFORMING ASSET SUMMARY
At June 30, 1998 and December 31, 1997and 1996
(Dollars in Thousands)
=================================================================================================
At At December 31,
June 30, ------------------------
1998 1997 1996
- -------------------------------------------------------------------------------------------------
Loans accounted for on a nonaccrual basis:
Real estate:
One- to Four-family residence $ 31 $ 22 $ --
Commercial 269 271 --
Construction -- -- --
Automobile 3 -- --
Home equity -- -- --
Passbook -- -- --
Commercial -- -- --
Other -- -- 9
----- ----- -----
Total $ 303 $ 293 $ 9
===== ===== =====
Accruing loans which are contractually
past due 90 days or more:
Real estate:
One- to four-family residence $ -- $ -- $ --
Commercial -- -- --
Construction -- -- --
Automobile -- -- --
Home equity -- -- --
Passbook -- -- --
Commercial -- -- --
Other -- -- --
----- ----- -----
Total $ -- $ -- $ --
----- ----- -----
Total nonperforming loans $ 303 $ 293 $ 9
===== ===== =====
Percentage of total loans 1.61% 1.74% 0.06%
Other nonperforming assets $ 40 $ 40 $ --
Loans modified in troubled debt
restructurings $ -- $ -- $ --
==================================================================================================
Source: Ogdensburg Federal, preliminary prospectus.
28
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Table 9
ALLOWANCE FOR LOAN LOSSES
Six Months Ended June 30, 1998 and 1997
and Years Ended December 31, 1997 and 1996
(Dollars in Thousands)
=========================================================================================================
Six Months Ended Year Ended
June 30, December 31,
------------------------------ ------------------------------
1998 1997 1997 1996
- ---------------------------------------------------------------------------------------------------------
Balance at beginning of period $ 164 $ 116 $ 116 $ 116
Loans charged off:
Real estate mortgage:
One- to four-family residence -- -- -- --
Commercial -- -- 3 --
Construction -- -- -- --
Automobile 3 -- 3 --
Home equity -- -- -- --
Passbook -- -- -- --
Commercial -- -- -- --
Other -- 2 3 --
----- ----- ----- -----
Total charge-offs 3 2 9 --
----- ----- ----- -----
Recoveries:
Real estate mortgage:
One- to four-family residence -- -- -- --
Commercial -- -- -- --
Construction -- -- -- --
Automobile -- -- -- --
Home equity -- -- -- --
Passbook -- -- -- --
Commercial -- -- -- --
Other 1 - -- --
----- ----- ----- -----
Total recoveries 1 -- -- --
----- ----- ----- -----
Net loans charged off 2 2 9 --
----- ----- ----- -----
Provision for loan losses 3 -- 57 --
----- ----- ----- -----
Balance at end of period $ 165 $ 114 $ 164 $ 116
----- ----- ----- -----
Ratio of net charge-offs to
average loans outstanding during
the period 0.01% 0.01% 0.06% 0.00%
===== ===== ===== =====
=========================================================================================================
Source: Ogdensburg Federal, preliminary prospectus.
29
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Table 10
ALLOWANCE FOR LOAN LOSS ALLOCATION BY LOAN TYPE
At June 30, 1998 and
At December 31, 1997 and 1996
(Dollars in Thousands)
======================================================================================================================
At December 31,
----------------------------------------------------------
At June 30, 1998 1997 1996
--------------------------- -------------------------- -----------------------------
Percent of Percent of Percent of
Loans in Each Loans in Each Loans in Each
Category to Category to Category to
Amount Total Loans Amount Total Loans Amount Total Loans
- ----------------------------------------------------------------------------------------------------------------------
Real estate mortgage:
One- to four-family
residential $ 32 19.39% $ 32 19.51% $ 41 35.34%
Commercial 12 7.27 47 28.66 11 9.48
Construction 1 0.61 1 0.61 3 2.59
Automobile 85 51.52 53 32.32 29 25.00
Home equity 16 9.70 18 10.97 19 16.38
Passbook -- -- -- -- -- --
Commercial -- -- -- -- -- --
Other 19 11.51 13 7.93 13 11.21
---- ------ ---- ------ ---- ------
Total allowance
for loan losses $165 100.00% $164 100.00% $116 100.00%
==== ====== ==== ====== ==== ======
======================================================================================================================
Source: Ogdensburg Federal, preliminary prospectus.
30
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
PROPERTIES
The Association conducts its business through one full-service banking
office located in Ogdensburg, New York. The Association owns its office
facility. The net book value of the Association's premises at June 30, 1998
totaled $425,000. The office was opened in 1987.
The Association does not operate an automated teller machine at the
branch location. The Association expects to continue its ongoing analysis to
determine the efficiency and effectiveness of its branches in delivering
services and products to the local community. The Association's branch is
generally characterized as a modest but efficient office facility with a
favorable location and convenience. The Association currently has no plans to
add additional branch facilities, but will monitor feasible expansion
opportunities.
31
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
SUBSIDIARIES
The Association has no subsidiary corporations.
32
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
MARKET AREA
The Association's office is located in Ogdensburg, New York and the
primary market consists of the City of Ogdensburg, and the surrounding townships
of Lisbon, Oswegatchie, Madrid, Morristown, Heuvelton, Hammond, Depeyster,
Macomb and Waddington and the village of Rennsselaer Falls, all of which are
located in St. Lawrence County, New York. St. Lawrence County is the largest
county east of the Mississippi River in terms of total acreage. Ogdensburg is
the eastern most United States port on the Great Lakes and the northern most
port in New York and is adjacent to the Montreal-Ottawa-Toronto corridor.
Although Ogdensburg is fairly rural with only approximately 13,000 residents, it
is within a two-hour drive of over 15 million people.
The largest employers in Ogdensburg and the surrounding communities
include the Ogdensburg Bridge and Port Authority, local government offices, U.S.
Customs Office, Mater Dei College and Wadhams Hall Seminary College, Ogdensburg
School District, Mitel Corporation, CompAS, and several local hospitals. By
industry, the largest sectors of the Ogdensburg economy are retail, services and
manufacturing. The average household income of $28,806 in 1997 for Ogdensburg
was significantly below that of New York as a whole of $57,084 and for the
average for the United States of $50,5540. The overall population of Ogdensburg
has declined by approximately 5% from 1990 to 1997 as compared to marginal
growth of 1% for New York State and 7.5% growth rate for the United States.
Table 11 displays selected demographic data for the United States, the
state of New York, St. Lawrence County and the City of Ogdensburg.
Table 12 shows deposit trends for the city of Ogdensburg and St. Lawrence
County. Table 13 shows deposit concentrations within St. Lawrence County. As of
June 30, 1998,
33
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Ogdensburg Federal had a 2.4% market share and ranked 10 out of the twelve
financial institutions in St. Lawrence County. From 1995 to 1997, Ogdensburg
Federal's deposits grew 3.2% compared to the overall growth of 0.6% in total
deposits in St. Lawrence County and 1.1% for the city of Ogdensburg.
34
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Table 11
KEY ECONOMIC INDICATORS
United States, New York, Saint Lawrence County and Ogdensburg
==============================================================================================================================
United Saint Lawrence
Key Economic Indicators States New York County Ogdensburg
- ------------------------------------------------------------------------------------------------------------------------------
Population
- ------------------------------------------
Total Population - 1997 267,240,272 18,177,296 114,537 12,791
5-year projection percent change 4.5% (0.1)% (0.7)% (5.4)%
1990 - 1997 percent change 7.5% 1.0 % 2.3 % (5.4)%
Households
- ------------------------------------------
Total Households - 1997 98,741,200 6,684,831 38,684 4,049
5-year projection percent change 4.9% 0.0 % (0.2)% (5.5)%
1990 - 1997 percent change 7.4% 0.7 % 1.9 % (7.3)%
Per Capita Income
- ------------------------------------------
Per Capita Income - 1997 $18,885 $21,221 $13,615 $15,279
5-year projection percent change 21.7% 19.7 % 21.5 % 23.5 %
1990 - 1997 percent change 31.2% 28.8 % 31.2 % 34.9 %
Average Household Income
- ------------------------------------------
Average Household Income - 1997 $50,540 $57,084 $38,075 $38,469
5-year projection percent change 20.7% 18.3 % 20.6 % 21.8 %
1990 - 1997 percent change 31.3% 29.1 % 30.7 % 32.2 %
Median Household Income
- ------------------------------------------
Median Household Income - 1997 $37,079 $39,912 $29,315 $28,806
5-year projection percent change 13.1% 9.7 % 11.4 % 11.7 %
1990 - 1997 percent change 23.2% 20.7 % 22.1 % 22.0 %
Household Income Distribution - 1997
- ------------------------------------------
$ 0 - 24 K 33.5% 32.0 % 43.0 % 44.5 %
$25 - 49K 30.9% 28.2 % 32.4 % 30.6 %
$50K + 35.6% 39.8 % 24.7 % 24.9 %
Household Income Distribution - proj. 2002
- ------------------------------------------
$ 0 - 24 K 29.4% 29.6 % 38.2 % 38.4 %
$25 - 49K 28.3% 26.0 % 30.5 % 30.3 %
$50K + 42.3% 44.4 % 31.4 % 31.4 %
==============================================================================================================================
Source: SNL Securities and Claritas
-35-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Table 12
DEPOSIT TRENDS FOR OGDENSBURG, AND SAINT LAWRENCE COUNTY
For All Banks, and Thrifts
Deposit Data as of June 30th Date
(Dollars in Thousands)
================================================================================
1997 1995-97
No. of 1997 1996 1995 Growth
Area Offices Deposits Deposits Deposits Rate
- --------------------------------------------------------------------------------
Ogdensburg 6 $154,698 $150,056 $151,459 1.1%
St. Lawrence County 43 $902,173 $899,667 $890,969 0.6%
================================================================================
Table 13
DEPOSIT MARKET SHARE FOR SAINT LAWRENCE COUNTY
For All Banks and Thrifts
June 30, 1995 to June 30, 1997
===========================================================================================================
1997 1996 1995
1997 ---------------- ---------------- ---------------- 1995-97
No. of Deposits % of Deposits % of Deposits % of Growth
Institution Offices Type ($000s) Total ($000s) Total ($000s) Total Rate
- -----------------------------------------------------------------------------------------------------------
Community Bank 18 B $304,598 33.8% $299,041 33.2% $292,615 32.8% 2.0%
KeyCorp 7 B 139,581 15.5% 149,151 16.6% 159,673 17.9% (6.5)%
Canton FS&LA 1 T 80,454 8.9% 84,218 9.4% 85,307 9.6% (2.9)%
HSBC Holding PLC 2 B 79,558 8.8% 86,709 9.6% 79,591 8.9% 0.0%
North Country SB 3 SB 74,776 8.3% 73,952 8.2% 73,132 8.2% 1.1%
First National 4 B 73,700 8.2% 70,406 7.8% 78,353 8.8% (3.0)%
Gouverneur S&LA 1 T 43,433 4.8% 44,797 5.0% 43,708 4.9% (0.3)%
Massena S&LA 1 T 39,136 4.3% 34,671 3.9% 31,087 3.5% 12.2%
K&Z Company LLC 2 B 31,003 3.4% 22,615 2.5% 14,824 1.7% 44.6%
- -----------------------------------------------------------------------------------------------------------
Ogdensburg FS&LA 1 T 21,227 2.4% 20,577 2.3% 19,912 2.2% 3.2%
- -----------------------------------------------------------------------------------------------------------
Citizens NB of Hammond 2 B 9,632 1.1% 7,975 0.9% 7,019 0.8% 17.1%
Citizens NB of Mac 1 B 5,075 0.6% 5,555 0.6% 5,748 0.6% (6.1)%
-------- ----- -------- ----- -------- ----- ----
Total in Count 43 $902,173 100.0% $899,667 100.0% $890,969 100.0% 0.6%
===========================================================================================================
Source: SNL Securities
-36-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
SUMMARY
Ogdensburg Federal has historically operated as a community-oriented
institution which emphasizes residential real estate loans. In recent years,
the Association has increased the origination of consumer loans, particularly
automobile loans, and has engaged in a limited amount of commercial real estate
and commercial business lending. Going forward, the Association will continue
growing and continue to meet the needs of the Association's market area.
37
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
II. COMPARISONS WITH PUBLICLY HELD COMPANIES
GENERAL
The comparative market approach provides a sound basis for determining
estimates of going-concern valuations where a regular and active market exists
for the stocks of peer institutions. The comparative market approach was
utilized in determining the estimated aggregate pro forma market value of
Ogdensburg Federal because: (i) reliable market and financial data are readily
available for comparable institutions; (ii) the comparative market method is
required by the applicable regulatory guidelines; and (iii) other alternative
valuation methods (such as income capitalization, liquidation analysis, or
discounted cash flow) are unlikely to produce a valuation relevant to the future
trading patterns of the related equity interest. The generally employed
valuation method in initial public offerings, where possible, is the comparative
market approach, which also can be relied upon to determine pro forma market
value in an initial thrift stock offering.
The comparative market approach derives valuation benchmarks from the
trading patterns of selected peer institutions which due to certain factors,
such as financial performance and operating strategies, enable the appraiser to
estimate the potential value of the subject institution in a stock conversion
offering. The pricing and trading history of recent initial public offerings of
thrifts also are examined to provide any evidence of the new issue discount that
must be considered. In Chapter II, our valuation analysis focuses on the
selection and comparison of Ogdensburg Federal with a comparable group of
publicly held thrifts (the "Comparative Group"). Chapter III details any
additional discounts or premiums we believe are appropriate to the Association's
pro forma conversion valuation.
-38-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
SELECTION CRITERIA
Selected market price and financial performance data for thrifts listed on
the New York and American Stock Exchanges and those thrifts traded on the over-
the-counter markets listed on the National Association of Securities Dealers
Automated Quotation System ("Nasdaq") are shown in Exhibit III. Several
criteria were used to select the individual members of the Comparative Group
from the overall universe of publicly held thrifts.
. Operating characteristics - An institution's operating characteristics
-------------------------
are the most important factors because they affect investors' expected
rates of return on a company's stock under various business/economic
scenarios, and they influence the market's general perception of the
quality and attractiveness of a given company. Operating
characteristics, which may vary in importance during the business cycle,
include financial variables such as profitability, balance sheet growth,
capitalization, asset quality, and other factors such as lines of
business and management strategies.
. Degree of marketability and liquidity - Marketability of a stock
-------------------------------------
reflects the relative ease and promptness with which a security may be
sold when desired, at a representative current price, without material
concession in price merely because of the necessity of sale.
Marketability also connotes the existence of buying interest as well as
selling interest and is usually indicated by trading volumes and the
spread between the bid and asked price for a security. Liquidity of the
stock issue refers to the organized market exchange process whereby the
security can be converted into cash. We attempted to limit our selection
to companies that have access to a regular trading market. We eliminated
from the comparative group companies with market prices that were
materially influenced by publicly announced or widely rumored
acquisitions. However, the expectation of continued industry
consolidation is currently embedded in thrift and bank stock valuations.
. Geographic Location - The region of the country where a company operates
-------------------
is also of importance in selecting the comparative group. The operating
environment for savings institutions varies from region to region with
respect to business and economic environments, real estate market
conditions, speculative takeover activity, and investment climates.
Economic and investor climates can also vary greatly within a region,
particularly due to takeover activity.
-39-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
The Association's lending operations conform to the typical lending profile
of a traditional thrift institution. The balance sheet of Ogdensburg Federal is
concentrated in residential mortgage loans. The Association's modest earnings
are lower than the average thrift. In determining the Comparative Group
composition, we focused on the Association's level of earnings, asset size and
capital as well as its residential real estate lending activities. As with any
composition of a group of comparable companies, the identification process was
broadened sufficiently to assemble a meaningful number of candidates.
Specifically, we initiated a search for companies by applying the selection
criteria identified below. Companies that met a majority of the following
parameters were considered for inclusion in the Comparative Group:
. Asset size total assets ranging between $25 million and $75 million.
----------
. Capital level regulatory capital ratios that would generally qualify
-------------
for well capitalized designation.
. Profitability return on average assets ("ROAA") less than 100 basis
-------------
points.
. Balance sheet composition level of loans to assets greater than 60% and
-------------------------
lower than 95%, accompanied by modest concentration of non-earning
assets with reliance upon deposits as the chief funding source.
. Loan concentration more than 50% of loans are residential mortgage
------------------
loans.
. Asset quality ratio of nonperforming assets to total assets less than
-------------
2.50%.
. Geographic location additional consideration given to companies located
-------------------
in New York and surrounding states.
Our search for comparable publicly held thrifts initially targeted well-
capitalized, profitable thrifts with significant residential real estate lending
activities. Many public thrifts exhibited all of these distinct operating and
financial characteristics.
As a result of applying the aforementioned criteria and analyzing the
screening results, the selection process has produced a reliable representation
of publicly traded thrifts with
-40-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
operations comparable to those of Ogdensburg Federal. A general overview of the
14 members selected for the Comparative Group is presented in Table 14. The
asset sizes of the Comparative Group companies range from $29.7 million at West
Town Bancorporation to $74.1 million at Albion Banc Corp., with an overall
average size of $56.5 million. While some differences inevitably exist between
the Association and the individual companies, we believe that the chosen
Comparative Group on the whole provides a meaningful basis of comparison for
valuation purposes.
-41-
Table 14
Comparative Group Operating Summary
As of June 30, 1998
- -----------------------------------------------------------------------------------------------------------------------------
Total Equity/
Number Assets Assets
Company Name City State of Office IPO Date ($000) (%)
=============================================================================================================================
Ogdensburg Federal Ogdensburg NY 1 24,247 6.80
Comparative Group Averages 2 56,467 10.73
Albion Banc Corp. Albion NY 2 07/26/1993 74,118 8.49
AmTrust Capital Corp. Peru IN 2 03/28/1995 65,270 11.52
Cecil Bancorp, Incorporated Elkton MD 2 11/10/1994 67,987 11.47
Home Building Bancorp, Inc. Washington IN 2 02/08/1995 44,662 13.76
Kenwood Bancorp, Incorporated Cincinnati OH 1 07/01/1996 47,624 9.54
Lenox Bancorp, Incorporated Saint Bernard OH 3 07/18/1996 54,589 12.86
MCM Savings Bank, FSB Hannibal MO 6 12/29/1992 65,464 6.50
Mid-Central Financial Corporation Wadena MN 3 04/25/1994 62,873 9.12
Mid-Coast Bancorp, Inc. Waldoboro ME 3 11/02/1989 65,309 8.02
Midwest Savings Bank Bolingbrook IL 2 09/23/1996 43,310 7.28
Mutual Community Savings Bank, Inc., SSB Durham NC 3 06/29/1993 63,537 12.63
St. Landry Financial Corporation Opelousas LA 1 04/05/1995 62,902 11.01
Vermilion Bancorp, Inc. Danville IL 1 03/26/1997 43,197 14.29
West Town Bancorp, Incorporated Cicero IL 1 03/01/1995 29,699 13.70
-42-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
RECENT FINANCIAL COMPARISONS
Table 15 summarizes certain key financial comparisons between Ogdensburg
Federal and the Comparative Group. Tables 16 through 20 contain detailed
financial comparisons of the Association with the individual Comparative Group
companies based on measures of profitability, income and expense components,
yield-cost structure, capital levels, credit risk, balance sheet composition,
and growth rates. Comparative financial data for both Ogdensburg Federal and
the Comparative Group companies were utilized as of or for the last twelve
months ("LTM") ended June 30, 1998.
Ogdensburg Federal's ROAA was 0.35% as compared to the Comparative Group's
average ROAA of 0.59%. The Association's negative 0.35% core ROAA (excluding
gains on sale and other non-recurring items) also trailed the Comparative
Group's average core ROAA of 0.59%. In contrast to the Comparative Group, the
Association's profitability was restrained due to a higher level of loan loss
provisions, lower interest income and lower noninterest income. Two of the
fifteen members of the Comparative Group reported lower or equal levels of
profitability than the Association.
The Association's net interest income of 2.93% relative to average assets
was positioned below the Comparative Group's average of 3.17%. The
Association's relatively low level of net interest income is attributable to its
high deposit to loan ratio and its comparatively lower capital base.
The Association's net interest rate spread was 3.12% over the observed
period, measuring below the Comparative Group's average of 3.27%. The
Association's cost of funds at 4.93% was only slightly higher than the
Comparative Group's average of 4.86%. The Association's
-43-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
yield on interest-earning assets measured 7.81%, slightly higher than the
Comparative Group's average of 7.64%.
The Association's net interest-earning asset balance averaged 4.55% of
total assets and was positioned well below the Comparative Group's average of
9.81%. This disadvantage primarily reflected the Association's lower capital
level compared to the Comparative Group. The Association's 6.80% ratio of
equity to assets was below the Comparative Group's average equity ratio of
10.73%.
The Association's non-interest operating income totaled 0.20% in relation
to average assets, lower than the Comparative Group's average of 0.55% primarily
due to the Association's low level of fee income.
The Association increased its level of provision for loan losses, as
explained in Chapter 1, in reaction to expansion of the consumer automobile loan
portfolio. The Comparative Group exhibited varying levels of provisions, with
an overall average of 0.07% relative to average assets compared to the
Association's 0.25%. The Association had non-earning assets equal to 1.41% of
average assets in comparison to 0.73% for the Comparative Group on the whole.
Ogdensburg Federal's reserves to total loans, at 0.87% of total loans was higher
than the Comparative Group's average of 0.51%. However, the Comparative Groups
ratio of reserves to nonperforming loans, at 78.91% was higher than the
Association's ratio of 40.81%, due to the Association's higher level of
nonperforming loans.
The Association's 2.36% ratio of operating expense to average assets was
lower the Comparative Group average of 2.73%.
Total net loans at the Association amounted to 77.11% of assets at
Ogdensburg Federal, slightly above the Comparative Group's average concentration
of 76.02%. The Association's
-44-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
holdings of cash and investment securities were 19.73% of total assets, just
below the Comparative Group's average of 20.83%. The Association's 65.6%
proportion of one-to-four family residential mortgages to total loans was lower
than the Comparable Group's average of 81.1%, while the Association's ratio of
other mortgage loans to loans, at 4.89%, is lower than the Comparable Group's
average of 7.2%. The Association had nonmortgage loans of 29.6%, well above the
Comparable Group's average of 11.7% of loans.
The Association's asset and deposit growth rates, at 6.14% and 5.32%
respectively, exceeded the Comparative Group's averages of 5.66% and 4.05%,
while its 18.6% loan growth rate significantly exceeded the Comparative Group's
rate of 7.71%. The Association's recent loan growth has been internally
generated with a high emphasis on selective origination of assets at attractive
yields and with prudent credit risk considerations.
In summary, the Association's earnings performance trailed that of the
Comparative Group. The Comparative Group's higher capital base provided
substantial source of interest-free funds not available to the Association. In
addition, the Comparative Group's net interest margin is higher than the
Association's and its asset quality is stronger. The Association has a higher
ratio of residential mortgages to loans and a higher ratio of total loans to
assets.
-45-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Table 15
KEY FINANCIAL COMPARISONS
OGDENSBURG FEDERAL AND THE COMPARATIVE GROUP
As of the Twelve Months Ended June 30, 1998
Comp.
Ogdensburg Group
Federal Average
------------ -----------
PROFITABILITY
- -------------
LTM Return on Average Assets 0.35 % 0.59 %
Core Return on Average Assets 0.35 0.59
LTM Return on Average Equity 5.13 5.78
Core Return on Average Equity 5.13 5.69
INCOME AND EXPENSE (% of avg. assets)
- ------------------
Total Interest Income 7.10 7.41
Total Interest Expense 4.43 4.24
Net Interest Income 2.67 3.17
Provision for Loan Losses 0.25 0.07
Other Operating Income 0.20 0.55
Net Gains & Nonrecurring Income 0.00 0.15
General & Administrative Expense 2.36 2.73
Real Estate Expense (Income) 0.00 (0.01)
Nonrecurring Expense 0.00 0.00
YIELD-COST DATA
- ---------------
Yield on Earning Assets 7.81 7.64
Cost of Funds 4.93 4.86
---- ----
Net Interest Spread 2.88 2.78
ASSET UTILIZATION (% of avg. assets)
- -----------------
Avg. Interest-earning Assets 94.34 96.94
Avg. Interest-bearing Liabilities 89.79 87.13
----- -----
Net Interest-earning Assets 4.55 9.81
-46-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Table 15 (continued)
KEY FINANCIAL COMPARISONS
OGDENSBURG FEDERAL AND THE COMPARATIVE GROUP
As of the Twelve Months Ended June 30, 1998
Comp.
Ogdensburg Group
Federal Average
------------ -----------
BALANCE SHEET COMPOSITION (% of assets)
- -------------------------
Cash and Securities 19.73 % 20.83 %
Loans Receivable, net 77.11 76.02
Real Estate 0.16 0.11
Intangible Assets 0.00 0.08
Other Assets 2.99 2.93
Total Deposits 92.20 75.65
Borrowed Funds 0.00 12.17
Other Liabilities 1.00 1.45
Total Equity 6.80 10.73
LOAN PORTFOLIO (% of total loans)
- --------------
Residential Mortgage Loans 65.55 81.11
Other Real Estate Mortgage Loans 4.89 7.22
Nonmortgage Loans 29.56 11.67
GROWTH RATES
- ------------
Total Assets 6.14 5.66
Total Loans 18.59 7.71
Total Deposits 5.32 4.05
CREDIT RISK RATIOS
- ------------------
Nonperforming Loans / Total Loans 1.61 0.70
Nonperforming Assets / Total Assets 1.41 0.73
Reserves / Loans 0.87 0.51
Reserves / NPAs 48.10 78.91
-47-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
TABLE 16
GENERAL FINANCIAL PERFORMANCE RATIOS
AS OF OR FOR THE TWELVE MONTHS ENDED JUNE 30, 1998
- -------------------------------------------------------------------------------------------------------------------------------
Tang. Net LTM LTM
Total Total Equity/ Equity/ NPAs/ Interest ROAA ROAE Core Core
Assets Deposits Assets Assets Assets Margin LTM LTM ROAA ROAE
Company Name ($000) ($000) (%) (%) (%) (%) (%) (%) (%) (%)
===============================================================================================================================
Ogdensburg Federal 24,247 22,356 6.80 6.80 1.41 3.12 0.35 5.13 0.35 5.13
Comparative Group Averages 56,467 42,718 10.73 10.66 0.73 3.27 0.59 5.78 0.59 5.69
Albion Banc Corp. 74,118 55,977 8.49 8.49 0.47 3.39 0.53 6.18 0.53 6.18
AmTrust Capital Corp. 65,270 48,297 11.52 11.42 2.04 2.79 0.34 3.18 0.34 3.18
Cecil Bancorp, Incorporated 67,987 56,430 11.47 11.47 0.56 4.21 0.95 8.28 0.95 8.28
Home Building Bancorp, Inc. 44,662 31,643 13.76 13.76 0.30 3.47 0.71 5.16 0.70 5.07
Kenwood Bancorp, Incorporated 47,624 41,575 9.54 9.54 0.13 2.32 0.65 7.01 0.63 6.79
Lenox Bancorp, Incorporated 54,589 33,078 12.86 12.86 0.23 2.98 0.35 2.52 0.35 2.52
MCM Savings Bank, FSB 65,464 53,752 6.50 6.50 0.98 2.60 0.47 7.37 0.47 7.37
Mid-Central Financial Corporation 62,873 48,432 9.12 9.12 0.28 3.53 0.97 10.61 0.96 10.51
Mid-Coast Bancorp, Inc. 65,309 47,096 8.02 8.02 0.38 3.90 0.69 8.30 0.69 8.30
Midwest Savings Bank 43,310 30,350 7.28 7.28 NA 3.34 0.40 5.63 0.35 4.82
Mutual Community Savings Bank, Inc., SSB 63,537 50,848 12.63 11.72 2.42 4.69 0.63 4.77 0.62 4.66
St. Landry Financial Corporation 62,902 45,505 11.01 11.01 1.30 2.73 0.41 3.63 0.41 3.65
Vermilion Bancorp, Inc. 43,197 29,720 14.29 14.29 0.00 3.15 0.71 4.62 0.71 4.61
West Town Bancorp, Incorporated 29,699 25,352 13.70 13.70 0.35 2.72 0.51 3.66 0.51 3.66
48
Table 17
Income and Expense Analysis
For the Twelve Months Ended June 30, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
As a Percentage of Average Assets
--------------------------------------------------------------------------------------------------
Net Other Gains & Gen. & Real
Interest Interest Interest Operating Non-rec. Loan Loss Admin. Estate Non-rec. Core
Company Name Income Expense Income Income Income Provisions Expense Expense Expense Earnings
====================================================================================================================================
Ogdensburg Federal 7.10 4.43 2.93 0.20 0.00 0.25 2.36 0.00 0.00 0.35
Comparative Group Averages 7.41 4.24 3.17 0.55 0.15 0.07 2.73 (0.01) 0.00 0.59
Albion Banc Corp. 7.46 4.20 3.27 0.54 0.05 0.05 2.90 0.00 0.00 0.53
AmTrust Capital Corp. 6.97 4.31 2.66 1.02 0.39 0.19 2.92 0.00 0.00 0.34
Cecil Bancorp, Incorporated 8.04 3.91 4.13 0.62 0.09 0.15 2.95 0.00 0.00 0.95
Home Building Bancorp, Inc. 7.50 4.13 3.37 0.38 0.00 0.04 2.64 (0.02) 0.00 0.70
Kenwood Bancorp, Incorporated 7.29 5.00 2.29 0.97 0.92 0.00 2.38 (0.03) 0.00 0.63
Lenox Bancorp, Incorporated 7.24 4.31 2.93 0.38 0.10 0.02 2.73 0.00 0.00 0.35
MCM Savings Bank, FSB 7.22 4.68 2.55 0.86 0.30 0.08 2.58 0.00 0.00 0.47
Mid-Central Financial Corporation 7.65 4.27 3.38 0.35 0.00 0.11 2.03 0.00 0.00 0.96
Mid-Coast Bancorp, Inc. 8.02 4.30 3.72 0.54 0.13 0.11 3.09 0.02 0.00 0.69
Midwest Savings Bank 7.14 3.87 3.27 0.75 0.00 0.02 3.70 (0.02) 0.00 0.35
Mutual Community Savings
Bank, Inc., SSB 7.50 3.13 4.37 0.86 NA 0.02 4.13 0.01 0.00 0.62
St. Landry Financial Corporation 7.27 4.57 2.70 0.10 0.00 0.00 2.24 (0.05) 0.00 0.41
Vermilion Bancorp, Inc. 7.56 4.48 3.09 0.14 0.00 0.13 2.05 0.00 0.00 0.71
West Town Bancorp, Incorporated 6.81 4.20 2.61 0.14 0.00 0.02 1.93 0.00 0.00 0.51
-49-
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
TABLE 18
YIELD-COST STRUCTURE AND GROWTH RATES
FOR THE TWELVE MONTHS ENDED JUNE 30, 1998
- ----------------------------------------------------------------------------------------------------------------------------
As a % of Average Assets
----------------------------
Average Average Net Yield on Net Asset Loan Deposit
Earning Costing Earning Earning Cost of Interest Growth Growth Growth
Company Name Assets Libilities Assets Assets Funds Spread Rate Rate Rate
============================================================================================================================
Ogdensburg Federal 94.34 89.79 4.55 7.81 4.93 2.88 6.14 18.59 5.32
Comparative Group Averages 96.94 87.13 9.81 7.64 4.86 2.78 5.66 7.71 4.05
Albion Banc Corp. 96.32 89.84 6.49 7.75 4.67 3.08 8.00 17.90 6.99
AmTrust Capital Corp. 95.41 87.79 7.62 7.30 4.91 2.39 -8.11 -8.00 -5.45
Cecil Bancorp, Incorporated 98.11 86.63 11.48 8.20 4.52 3.68 6.41 10.84 6.48
Home Building Bancorp, Inc. 97.11 86.75 10.36 7.72 4.76 2.96 -0.89 17.38 -10.14
Kenwood Bancorp, Incorporated 98.81 88.84 9.97 7.38 5.63 1.75 -2.90 6.95 2.63
Lenox Bancorp, Incorporated 98.31 86.70 11.61 7.37 4.98 2.39 13.44 -2.10 7.63
MCM Savings Bank, FSB 97.75 91.82 5.93 7.39 5.10 2.29 2.50 -3.78 3.38
Mid-Central Financial Corporation 95.90 89.26 6.64 7.98 4.78 3.20 12.80 19.79 3.66
Mid-Coast Bancorp, Inc. 95.46 89.07 6.39 8.40 4.83 3.57 9.32 2.01 11.10
Midwest Savings Bank 97.85 91.02 6.83 7.30 4.25 3.05 1.81 NA 13.75
Mutual Community Savings Bank, Inc., SSB 93.20 72.96 20.23 8.05 4.29 3.76 6.57 NA 0.41
St. Landry Financial Corporation 99.00 88.08 10.92 7.34 5.19 2.15 7.23 4.59 6.68
Vermilion Bancorp, Inc. 98.01 85.75 12.26 7.72 5.22 2.50 15.53 17.96 1.07
West Town Bancorp, Incorporated 95.94 85.28 10.66 7.10 4.93 2.17 7.50 8.94 8.52
50
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
TABLE 19
BALANCE SHEET COMPOSITION
FOR THE PERIOD ENDED JUNE 30, 1998
- -------------------------------------------------------------------------------------------------
Cash & Net Real Intang. Other Total
Company Name Securities Loans Estate Assets Assets Deposits
=================================================================================================
Ogdensburg Federal 19.73 77.11 0.16 0.00 2.99 92.20
Comparative Group Averages 20.83 76.02 0.11 0.08 2.93 75.65
Albion Banc Corp. 19.31 76.99 0.00 0.00 3.69 75.52
AmTrust Capital Corp. 22.06 71.78 0.00 0.11 5.91 74.00
Cecil Bancorp, Incorporated 12.10 86.00 0.00 0.00 1.73 83.00
Home Building Bancorp, Inc. 22.76 74.22 0.00 0.00 3.02 70.85
Kenwood Bancorp, Incorporated 17.88 80.67 0.00 0.00 1.45 87.30
Lenox Bancorp, Incorporated 28.44 69.65 0.00 0.00 1.92 60.59
MCM Savings Bank, FSB 30.20 67.03 0.01 0.00 2.74 82.11
Mid-Central Financial Corporation 10.33 87.74 0.15 0.00 1.78 77.03
Mid-Coast Bancorp, Inc. 17.71 78.30 0.24 0.00 3.75 72.11
Midwest Savings Bank 6.37 91.51 0.13 0.00 1.99 70.08
Mutual Community Savings Bank, Inc., SSB 23.13 70.33 0.85 1.03 4.67 80.03
St. Landry Financial Corporation 29.71 68.42 0.21 0.00 1.66 72.34
Vermilion Bancorp, Inc. 18.72 78.06 0.00 0.00 3.22 68.80
West Town Bancorp, Incorporated 32.90 63.56 0.00 0.00 3.54 85.36
- -------------------------------------------------------------------------------------------------
Total Total Other Total Total
Company Name Deposits Borrowings Liabilities Liabilities Equity
=================================================================================================
Ogdensburg Federal 92.20 0.00 1.00 93.20 6.80
Comparative Group Averages 75.65 12.17 1.45 89.27 10.73
Albion Banc Corp. 75.52 13.74 2.24 91.51 8.49
AmTrust Capital Corp. 74.00 12.89 1.60 88.48 11.52
Cecil Bancorp, Incorporated 83.00 3.34 2.19 88.53 11.47
Home Building Bancorp, Inc. 70.85 14.55 0.84 86.24 13.76
Kenwood Bancorp, Incorporated 87.30 2.00 1.16 90.46 9.54
Lenox Bancorp, Incorporated 60.59 25.97 0.57 87.14 12.86
MCM Savings Bank, FSB 82.11 9.32 2.07 93.50 6.50
Mid-Central Financial Corporation 77.03 12.72 1.13 90.88 9.12
Mid-Coast Bancorp, Inc. 72.11 19.05 0.81 91.98 8.02
Midwest Savings Bank 70.08 19.85 2.79 92.72 7.28
Mutual Community Savings Bank, Inc., SSB 80.03 5.15 2.19 87.37 12.63
St. Landry Financial Corporation 72.34 15.61 1.04 88.99 11.01
Vermilion Bancorp, Inc. 68.80 16.20 0.71 85.71 14.29
West Town Bancorp, Incorporated 85.36 0.00 0.93 86.30 13.70
51
FELDMAN FINANCIAL ADVISORS, INC.
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TABLE 20
REGULATORY CAPITAL AND CREDIT RISK RATIOS
FOR THE PERIOD ENDED JUNE 30, 1998
- ------------------------------------------------------------------------------------------
Core Tier 1
Tang. Capital/ Capital/
Capital/ Risk Adj. Risk Adj. NPLs/ NPAs/
Company Name Assets Assets Assets Loans Assets
==========================================================================================
Ogdensburg Federal 6.80 12.00 12.00 1.61 1.41
Comparative Group Averages 9.63 17.70 17.12 0.70 0.73
Albion Banc Corp. NA NA NA 0.61 0.47
AmTrust Capital Corp. 10.70 16.77 16.77 2.33 2.04
Cecil Bancorp, Incorporated 11.11 17.86 17.86 0.67 0.56
Home Building Bancorp, Inc. 10.45 19.84 19.84 0.41 0.30
Kenwood Bancorp, Incorporated 9.3 19.82 19.82 0.16 0.13
Lenox Bancorp, Incorporated 10.95 NA NA 0.33 0.23
MCM Savings Bank, FSB 6.5 14.58 14.58 1.45 0.98
Mid-Central Financial Corporation 8.11 12.92 12.92 0.15 0.28
Mid-Coast Bancorp, Inc. 7.97 13.74 13.74 0.18 0.38
Midwest Savings Bank 7.28 13.58 13.58 NA NA
Mutual Community Savings Bank, Inc., SSB NA NA NA NA 2.42
St. Landry Financial Corporation 9.49 17.28 17.28 1.5 1.30
Vermilion Bancorp, Inc. 12.88 23.47 NA 0.00 0.00
West Town Bancorp, Incorporated 10.78 24.79 24.79 0.55 0.35
- -----------------------------------------------------------------------------------------
Resid. Other Nonmtg.
Reserves/ Reserves/ Mtgs./ Mtgs./ Loans/
Company Name Loans NPAs Loans Loans Loans
=========================================================================================
Ogdensburg Federal 0.87 48.10 65.55 4.89 29.56
Comparative Group Averages 0.51 78.91 81.11 7.22 11.67
Albion Banc Corp. 0.45 72.86 88.49 4.16 7.35
AmTrust Capital Corp. 1.13 39.49 52.90 5.27 41.83
Cecil Bancorp, Incorporated 0.35 51.18 78.06 12.78 9.16
Home Building Bancorp, Inc. 0.25 62.22 80.23 1.75 18.02
Kenwood Bancorp, Incorporated 0.25 155.74 87.84 11.57 0.59
Lenox Bancorp, Incorporated 0.15 46.83 91.71 3.00 5.29
MCM Savings Bank, FSB 0.42 28.93 85.00 5.25 9.75
Mid-Central Financial Corporation 0.49 154.8 65.86 5.46 28.68
Mid-Coast Bancorp, Inc. 0.70 143.03 69.73 18.72 11.55
Midwest Savings Bank NA NA 98.32 1.31 0.37
Mutual Community Savings Bank, Inc., SSB NA NA 84.56 8.09 7.35
St. Landry Financial Corporation 1.26 67.2 89.27 8.73 2.00
Vermilion Bancorp, Inc. 0.46 NM 84.05 8.95 7.00
West Town Bancorp, Incorporated 0.25 45.71 79.47 6.07 14.46
52
FELDMAN FINANCIAL ADVISORS, INC.
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III. MARKET VALUE ADJUSTMENTS
This concluding chapter of the appraisal identifies certain additional
adjustments to Ogdensburg Federal's estimated pro forma market value relative to
the comparative group selected in Chapter II. Adjustments are also necessary to
reflect the equity market's likely reception of a new thrift stock offering
under current conditions. The adjustments discussed in this chapter are made
from the viewpoints of potential investors, which include depositors holding
subscription rights and unrelated parties who may purchase stock in the
community offering. It is assumed that these potential investors are aware of
all relevant and necessary facts as they pertain to the value of the Association
relative to other publicly held thrift institutions and relative to alternative
investments.
The market value adjustments are based on certain financial and other
criteria, which include, among other factors:
(1) Earnings Prospects
(2) Market Area
(3) Management
(4) Dividend Policy
(5) Liquidity
(6) Subscription Interest
(7) Stock Market Conditions
(8) New Issue Discount
The final section of this chapter identifies Ogdensburg Federal's estimated
pro forma market value and compares the resulting company with members of the
comparative group and selected public thrift aggregate with respect to market
valuation ratios.
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FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
EARNINGS PROSPECTS
- ------------------
Earnings prospects are dependent upon the sensitivity of asset yields and
liability costs to changes in market interest rates, the credit quality of
assets, the stability of non-interest components of income and expense, and the
ability to leverage the balance sheet. Each of the foregoing is an important
factor to investors in assessing earnings prospects. The Association's core
earnings profitability in recent years has been hindered by low levels of
noninterest income and below average net interest income. While economic
conditions in the Association's market area are anticipated to remain stable, an
unexpected business downturn or dramatic interest rate increases could suppress
the Association's ability to grow, disrupt asset quality, and strain core
earnings.
As the Association seeks to generate loan growth to spur earnings momentum,
operating expenses and funding requirements become pivotal factors. The
Association's operating expense ratio was below the comparative group's average
but is likely to increase after the Conversion with the addition of costs
associated with being a public company and with compensation-related stock
benefit plans. The Association's funding requirements face pressure in the form
of continued intense competition for retail deposits from other financial
institutions and alternative investments.
Overall, the Association's recent trailing twelve-months core return on
average assets of 0.35% was well below the comparative group average of 0.59%.
The Association's annualized core return of 0.61% for the first six months of
1998 reflected a more normalized level of loan loss provisions. While the
Association's net interest spread should remain relatively flat in the current
interest rate environment, the Association's earnings stream is vulnerable to
rising interest rates due to retention of fixed-rate residential loans. The
infusion of capital proceeds
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FELDMAN FINANCIAL ADVISORS, INC.
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should assist the Association in further implementing its operating goals and
stabilize its earnings stream, which has been erratic in recent periods due to
certain nonrecurring items and charges. As the Association attempts to improve
returns compared to past returns, investors will be closely watching the
Association's core earnings results for signs of improvement. Generally, the
comparative group companies have reported moderate earnings, but show a more
sustained record of core profitability. Based on these considerations, we
believe a slight valuation discount to the Association's pro forma value is
warranted.
MARKET AREA
- -----------
The members of the comparative group were selected from the entire United
States. The thirteen companies collectively have operations in New York,
Maryland, Indiana, Louisiana, Ohio, Missouri, Minnesota, Maine, North Carolina
and Illinois. Most of the comparative group companies are based in smaller
communities. We do not believe that, on the whole, the market area conditions
of the comparative group are conspicuously different from those facing the
Association. Accordingly, we believe that no adjustment is warranted for market
area considerations.
MANAGEMENT
- ----------
Management's principal challenge is to generate profitable results, monitor
credit risks, and control operating costs while the Association competes in an
increasingly competitive financial services environment. Ogdensburg Federal's
management has demonstrated its effectiveness in steering the Association
through difficult operating periods, and can now turn its full attention to
enhancing the Association's competitive position and financial performance.
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FELDMAN FINANCIAL ADVISORS, INC.
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Accordingly, we assume that the Association has sufficient managerial resources
in place to implement its operating goals and objectives. Therefore, we believe
that no additional adjustment is warranted for this factor.
DIVIDEND POLICY
- ---------------
Management does not intend to pay cash dividends in the first year after
the Conversion. Management intends to review periodically the possible adoption
of a dividend policy. Possible future declarations and payments of dividends
will depend upon a number of factors, including the amount of the net proceeds
retained by the Stock Company, capital requirements, regulatory limitations, and
operating results. All members of the comparative group currently pay
dividends. As a result, we believe a downward adjustment is warranted for
dividends.
LIQUIDITY OF THE ISSUE
- ----------------------
Following the completion of the Conversion, the Association anticipates
that its common stock will be listed over-the-counter through the OTC
"Electronic Bulletin Board." The Association's subscription marketing agent
intends to make a post-conversion market in the common stock but is under no
obligation to match offers to buy and sell and may cease doing so at any time.
Furthermore, due to the relatively small market capitalization, it is
questionable whether an active and liquid trading market will develop or be
maintained. The liquidity of thrift stocks, as with all securities, has a
significant impact on their market valuation. Of the comparative group, two
companies are listed on Nasdaq, eight companies are listed on the OTC and four
companies are pink sheeted. While many small-cap thrift and bank stocks have
moved from pure pink sheet status to the OTC electronic bulletin board in
pursuit of increased liquidity,
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FELDMAN FINANCIAL ADVISORS, INC.
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discounts to exchange-listed stocks are still apparent as well as volatile
bid-ask spreads. Given the trading volumes exhibited by a majority of the
comparative group members, we believe the Association's estimated pro forma
value should be discounted marginally to reflect the possible lack of stock
liquidity following the Conversion.
SUBSCRIPTION INTEREST
- ---------------------
In recent years, initial public offerings of thrift stocks have attracted a
great deal of investor interest and this interest has continued through the
first half of 1998. Contributing to this huge demand is the growing scarcity
factor of mutual candidates for thrift stock conversions and the favorable
pricing for financial institutions in the market.
The demand for thrift conversion offerings continued through the first six
months of 1998 led by the conversions of Independence Community Bancorp in New
York and Brookline Bancorp in Massachusetts. Notwithstanding the demand for
thrift stocks in initial offerings, subscription interest does not always
indicate that the valuation range should be increased/decreased or the offering
should be priced in the upper/lower end of the valuation range. Many conversion
investors do not routinely purchase in the aftermarket, particularly at higher
stock prices or involving stock issues with limited liquidity. As such, absent
actual results of the Association's subscription offering, we do not believe any
adjustment is warranted at this time.
STOCK MARKET CONDITIONS
- -----------------------
Table 21 graphically displays the performance of the SNL Thrift Index of
all publicly traded thrifts as compared to the Standard & Poor's 500-Stock Index
("S&P 500") over the past
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FELDMAN FINANCIAL ADVISORS, INC.
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one and three-quarter years. The SNL Thrift Index substantially outperformed the
S&P 500 through April, 1998, advancing by 82.4% since year-end 1996 as compared
to the broader market index up 50.1%. The index of smaller public thrifts (less
than $250 million in assets) trailed the overall thrift performance, increasing
by 43.2%. Since April 1998, stocks for thrift institutions have trended downward
with the SNL Thrift Index declining 29.4% through September 4, 1998, while the
Small Thrift Index has fared almost as poorly, declining 23.3% over this period.
This compared to a 12.4% decline in the S&P 500 Index.
Table 22 graphically depicts selected interest rates over the past two and
three-quarter years. Interest rates turned upward through the first half of
1997, responding to concerns about inflationary pressures. Since that point,
interest rates have trended downward with the FNMA Fixed Mortgage Rate Yield
falling below 7.00% and the One-Year Treasury once again falling below 5.00% for
the first time since the first quarter of 1996. Speculation is that rates will
continue to drop over the near term as the Federal Reserve considers lowering
rates in response to the turmoil regarding most international markets, including
Asia, Russia and Latin America
The uncertainty facing most of the world's financial markets has led to the
Dow Jones Industrial Index losing approximately 17.0% of its value since
crossing the 9300 barrier in the first half of 1998. The adjustment in stock
valuations has hit all segments of the economy including bank and thrift stocks,
with stocks of major money center banks feeling the effects of the problems that
continue regarding Japanese banks. While the fundamentals of the U.S economy
remain relatively strong, with low unemployment, low interest rates and strong
corporate earnings, problems facing economies in other parts of the world and
the uncertainty facing the current Presidential administration, many believe the
U.S. markets are headed for continued periods of uncertainty and wide
fluctuations.
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FELDMAN FINANCIAL ADVISORS, INC.
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TABLE 21
COMPARATIVE STOCK MARKET PERFORMANCE
MONTH-END INDEX DATA, YEAR-END 1996 = 100
[PERFORMANCE GRAPH APPEARS HERE]
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FELDMAN FINANCIAL ADVISORS, INC.
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TABLE 22
SELECTED INTEREST RATE BENCHMARKS
MONTH-END INDICATORS
[PERFORMANCE GRAPH APPEARS HERE]
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FELDMAN FINANCIAL ADVISORS, INC.
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RECENT ACQUISITION ACTIVITY
- ---------------------------
Acquisition speculation is one factor impacting the prices of newly
converted thrifts in the aftermarket. Table 23 summarizes recent acquisition
activity involving thrifts and banks based in New York. Overall acquisition
premiums for New York institutions have been similar to the ratios reported
nationwide. During 1998 year-to-date, there were 11 acquisitions involving New
York banks and thrifts. The most prominent acquisition was the purchase of
Citicorp, a $310.9 billion-asset commercial bank, by Travelers Financial Group.
The state's financial institution marketplace comprises a large number of
banks and thrifts of all sizes, from small, regional banks and thrifts to the
large money center banks. Larger thrift institutions, such as Long Island
Bancorp, TR Financial and ALBANK Financial were absorbed in 1998. Thrift
acquisition activity in New York has been fueled by the number of available
institutions of significant size to attract acquisition interest. Several of
the state's larger thrifts are currently (or were until recently) organized as
mutual holding companies. The Association aims to maintain a strong community-
based focus and has indicated no desire to seek a sale of the institution in the
near future. Therefore, given these considerations, we do not believe
acquisition premiums are a significant factor to consider in determining the
Association's estimated pro forma market value.
-61-
Table 23
Selected Transaction Information
for Pending and Completed Transactions
of Institutions Headquartered in the State of New York
Since January 1, 1998
(Dollars in Thousands; Ratios in Percent)
- ------------------------------------------------------------------------------------------------------------------------
Seller Financial Data
--------------------------------------------------------
Tang
B/ B/ Announce Total Equity/ Equity/ YTD YTD NPAs
Buyer ST T Seller T Date Status Assets Assets Assets ROAA ROAE Assets
=========================================================================================================================
Averages 29,742,548 9.88 9.69 0.95 10.89 1.06
Medians 310,368 9.04 9.00 0.95 10.47 0.72
Acquisitions of Thrifts - Averages 2,134,330 10.75 10.47 0.86 9.00 0.93
Acquisitions of Thrifts - Medians 310,368 9.18 9.10 0.87 9.59 0.72
Banknorth Group VT B Evergreen Bancorp B 07/31/98 P 1,048,307 8.19 8.18 1.16 13.72 0.52
Cohoes Savings Bank NY T SFS Bancorp Inc. T 07/31/98 P 175,420 12.36 12.36 0.62 5.11 0.71
Dime Community Bncsh NY T Financial Bancorp T 07/20/98 P 310,368 9.04 9.00 0.95 10.47 2.19
Cortland First Finl NY B Oneida Valley Banc B 07/13/98 P 227,819 11.00 11.00 0.95 8.27 0.21
Charter One Fin'l OH T ALBANK Finl Corp. T 06/15/98 P 4,089,428 8.97 7.16 0.96 10.81 0.72
Roslyn Bancorp Inc. NY T TR Financial Corp. T 05/26/98 P 4,005,695 6.15 6.15 0.99 16.05 0.51
Ambanc Holding Co. NY T AFSALA Bancorp Inc T 04/23/98 P 160,408 12.52 12.52 0.78 6.19 0.30
K&Z Company LLC NY N First Natl Bk Lisb B 04/14/98 P 54,589 7.43 7.36 1.18 17.67 3.23
Travelers Group Inc NY N Citicorp B 04/06/98 P 310,897,000 6.82 6.73 1.21 17.10 1.22
Astoria Financial Cp NY T Long Island Bancor T 04/03/98 P 6,072,524 9.18 9.10 0.87 9.59 0.89
USB Holding Company NY B Tappan Zee Financi T 03/06/98 C 126,470 17.02 17.02 0.82 4.78 1.19
- ---------------------------------------------------------------------------------------
Announced Deal Values
------------------------------------------------------
Deal Price/ Price/ Tang.
Value Price/ Tang. LTM Prem/
Buyer ($M) Book Book EPS(1) Deps
=======================================================================================
Averages 8,699.56 264.78 275.69 24.83 25.49
Medians 73.60 151.10 151.10 22.58 14.19
Acquisitions of Thrifts-Average 682.17 250.36 262.97 24.32 24.86
Acquisitions of Thrifts-Medians 73.60 246.50 247.56 23.06 22.22
Banknorth Group 313.10 351.28 351.99 26.89 29.28
Cohoes Savings Bank NA NA NA NA NA
Dime Community Bncsh 73.60 246.50 247.56 24.40 22.22
Cortland First Finl 50.60 NA NA NA NA
Charter One Fin'l 1,075.80 257.80 329.64 23.06 24.87
Roslyn Bancorp Inc. 1,114.10 403.07 403.07 27.23 43.83
Ambanc Holding Co. 30.00 144.62 144.62 22.58 8.48
K&Z Company LLC 2.70 NA NA NA NA
Travelers Group Inc 82,536.20 NA NA NA NA
Astoria Financial Cp 1,765.70 299.09 301.83 32.11 35.57
USB Holding Company 33.80 151.10 151.10 30.56 14.19
(1) Excludes P/E ratios greater than 30.0x.
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FELDMAN FINANCIAL ADVISORS, INC.
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NEW ISSUE DISCOUNT
- ------------------
A "new issue" discount that reflects investor concerns and investment risks
inherent in all initial stock offerings is a factor to be considered in
valuations of initial thrift stock offerings. The magnitude of the new issue
discount typically expands during periods of declining thrift stock prices as
investors require larger inducements, and narrows during strong market
conditions.
The thrift conversion market continues to respond to the aftermarket
performance of recent offerings. Table 24 presents a summary of publicly traded
thrifts that have completed standard conversions since December 31, 1997. The
aftermarket performance of thrift conversions was more robust through the first
half of 1998, similar to the thrift stock market overall as opposed to the most
recent conversions and thrift stock market as a whole. As the thrift market
gained momentum during the second half of 1996 and 1997, aftermarket performance
improved through the first six months of 1998 even as pro forma valuations were
increased.
During 1998, the thrift conversion market has proven to be strong with the
typical offering selling out in the subscription phase and being priced at or
near the adjusted maximum of the valuation range. With valuations increasing to
reflect the strength of recent offerings, it is uncertain when the market will
reach its tolerance for higher valuations accompanied by the prospect of
companies generating lackluster returns on equity. The average price-to-book
ratio for the 23 publicly traded conversions completed thus far in 1998 was
76.4%.
Following the drop in stock prices over the past few months of 1998, the
performance of recently converted thrifts has followed this trend. While
thrifts converting during 1998 have experienced on average a one-day price
increase of 45.5%, the average price increase has
-63-
Table 24
Summary of Recent Publicly Traded Thrift Conversions
Pre-Conversion
-------------------
Total Tan.Eq./ Gross
Assets Assets Proceeds
Company Exchange State IPO Date ($mil.) (%) ($mil.)
- ------------------------------------ -------- ----- -------- ------- -------- --------
- ------------------------------------ -------- ----- -------- ------- -------- --------
FULL CONVERSION AVERAGE 367 9.71 77.6
- ------------------------------------ -------- ----- -------- ------- -------- --------
MHC OFFERING AVERAGE 444 12.56 74.7
- ------------------------------------ -------- ----- -------- ------- -------- --------
CFS Bancorp Inc. NASDAQ IN 07/24/98 NA 8.80 NA
PCB Holding Company OTC IN 07/02/98 22 9.51 4.0
Hudson River Bancorp Inc. NASDAQ NY 07/01/98 665 10.13 173.3
First Kansas Financial Corporation NASDAQ KS 06/29/98 96 6.91 15.5
Anson Bancorp, Inc. OTC NC 06/22/98 20 19.04 5.9
Columbia Financial of Kentucky, Inc. NASDAQ KY 04/15/98 104 12.59 26.7
Adirondack Financial Services
Bancorp BOTC NY 04/07/98 61 5.38 6.6
EFC Bancorp, Inc. AMSE IL 04/07/98 316 9.92 69.4
Quitman Bancorp, Inc. OTC GA 04/07/98 39 7.55 6.6
Heritage Bancorp, Inc. NASDAQ SC 04/06/98 247 11.81 69.4
Northeast Pennsylvania Financial
Corporation AMSE PA 04/01/98 369 7.73 59.5
Bay State Bancorp, Inc. AMSE MA 03/30/98 233 8.19 46.9
Home Loan Financial Corp. NASDAQ OH 03/26/98 60 17.16 22.5
Cavalry Bancorp, Inc. NASDAQ TN 03/17/98 276 10.69 75.4
Independence Community Bank
Corp. NASDAQ NY 03/17/98 3,733 6.77 704.1
SFSB Holding Company OTC PA 02/27/98 38 9.20 7.3
Richmond County Financial Corp. NASDAQ NY 02/18/98 993 10.15 244.7
HopFed Bancorp, Inc. NASDAQ KY 02/09/98 202 9.02 40.3
Timberland Bancorp, Inc. NASDAQ WA 01/13/98 206 11.57 66.1
Mystic Financial, Inc. NASDAQ MA 01/09/98 150 7.98 27.1
Wyman Park Bancorporation, Inc. OTC MD 01/07/98 62 7.63 10.1
Delaware First Financial Corporation OTC DE 01/05/98 113 5.41 11.6
United Tennessee Bankshares, Inc. NASDAQ TN 01/05/98 64 10.08 14.5
BCSB Bankcorp, Inc. (MHC) NASDAQ MD 07/08/98 NA 9.48 NA
Liberty Bancorp, Inc. (MHC) NASDAQ NJ 07/01/98 217 7.61 18.3
Niagara Bancorp, Inc. (MHC) NASDAQ NY 04/20/98 1,176 10.77 135.0
Gaston Federal Bancorp, Inc. (MHC) NASDAQ NC 04/13/98 NA 12.03 NA
Mid-Southern Savings Bank, FSB (MHC) OTC IN 04/09/98 94 12.92 NA
Brookline Bancorp, Inc. (MHC) NASDAQ MA 03/25/98 667 17.08 136.7
Marquette Savings Bank (MHC) OTC WI 01/22/98 67 18.05 8.5
Pro Forma Ratios After-Market
----------------------------- ------------------
Price/ Price/ Price/ IPO One Through
Book EPS Assets Price Day 09/04/98
Company (%) (x) (%) ($) (%) (%)
- ------------------------------------ -------- ------- ------ ------ ------ --------
- ------------------------------------ -------- ------- ------ ------ ------ --------
FULL CONVERSION AVERAGE 76.4 17.2 17.6 10.00 45.5 15.2
- ------------------------------------ -------- ------- ------ ------ ------ --------
MHC OFFERING AVERAGE 123.0 25.4 10.3 10.00 50.7 7.1
- ------------------------------------ -------- ------- ------ ------ ------ --------
CFS Bancorp Inc. 71.7 18.2 19.3 10.00 14.4 (8.8)
PCB Holding Company 71.0 17.6 15.3 10.00 15.0 (10.0)
Hudson River Bancorp Inc. 80.1 22.3 20.7 10.00 25.6 5.6
First Kansas Financial Corporation 78.5 14.0 14.0 10.00 23.1 1.3
Anson Bancorp, Inc. 65.3 21.9 22.4 10.00 NA 13.7
Columbia Financial of Kentucky, Inc. 74.5 19.6 20.4 10.00 71.3 20.0
Adirondack Financial Services
Bancorp 77.0 NA 9.8 10.00 20.0 15.0
EFC Bancorp, Inc. 76.6 13.5 18.0 10.00 47.5 2.5
Quitman Bancorp, Inc. 78.7 14.6 14.4 10.00 26.3 (5.0)
Heritage Bancorp, Inc. 78.0 16.1 21.9 15.00 NA 7.5
Northeast Pennsylvania Financial
Corporation 75.4 18.7 13.9 10.00 55.0 6.3
Bay State Bancorp, Inc. 78.7 20.9 16.8 20.00 46.9 (1.3)
Home Loan Financial Corp. 76.0 17.0 27.1 10.00 52.5 33.8
Cavalry Bancorp, Inc. 79.8 14.3 21.5 10.00 105.6 88.8
Independence Community Bank
Corp. 77.2 17.9 15.9 10.00 72.5 28.1
SFSB Holding Company 76.1 NA 16.1 10.00 28.1 0.0
Richmond County Financial Corp. 79.6 14.0 19.8 10.00 63.1 35.6
HopFed Bancorp, Inc. 75.4 12.4 16.6 10.00 68.1 66.3
Timberland Bancorp, Inc. 81.5 10.5 24.3 10.00 45.0 23.8
Mystic Financial, Inc. 77.8 17.5 15.3 10.00 44.4 15.0
Wyman Park Bancorporation, Inc. 76.7 23.3 14.0 10.00 37.5 8.7
Delaware First Financial Corporation 73.7 20.6 9.3 10.00 NA (13.2)
United Tennessee Bankshares, Inc. 78.4 16.1 18.5 10.00 47.5 16.9
BCSB Bankcorp, Inc. (MHC) 142.3 26.1 8.3 10.00 25.6 4.4
Liberty Bancorp, Inc. (MHC) 121.6 20.4 7.8 10.00 14.4 1.9
Niagara Bancorp, Inc. (MHC) 122.1 20.7 10.3 10.00 63.1 12.5
Gaston Federal Bancorp, Inc. (MHC) 116.8 24.5 10.9 10.00 80.0 12.5
Mid-Southern Savings Bank, FSB (MHC) 135.3 19.5 6.6 10.00 56.3 10.0
Brookline Bancorp, Inc. (MHC) 122.5 19.4 17.0 10.00 65.6 8.7
Marquette Savings Bank (MHC) 100.6 47.4 11.3 8.00 50.0 0.0
- 64 -
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
declined to 15.2% since conversion, with several thrifts, including the two most
recent conversions, now trading below their conversion price. The volatility
and uncertainty facing the overall market will effect the thrift conversion
market.
Thrift conversions continue to be priced at discounts to publicly traded
companies. This is due to the relatively high equity ratios, low returns on
equity, and the uncertainty regarding the ability of an institution to leverage
the balance sheet. Based upon the price/book ratio measure, standard thrift
conversions are being discounted by 30% to 40% relative to the overall market.
ADJUSTMENTS CONCLUSION
- ----------------------
The Association's pro forma valuation should be discounted relative to the
comparative group because of unproven earnings prospects, the possible lack of
liquidity, and the new issue discount. Individual discounts and premiums are
not necessarily additive and may, to some extent, offset or overlay each other.
Currently, conversions are often priced at substantial discounts to peer
institutions relative to price/book ratios, but at lesser discounts to the
comparable institutions' price/earnings ratios. It is the role of the appraiser
to balance the relative dynamics of price/book and price/earnings discounts and
premiums. We believe that relative to the comparative group, the Association's
pro forma valuation measures should be discounted.
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FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
VALUATION APPROACH
- ------------------
Table 25 displays the market price and valuation data of the comparative
group as of September 4, 1998. Table 26 compares the Association's valuation
ratios with the comparative group average, all public thrift aggregate, and all
New York public thrift aggregate. Exhibit IV-2 displays the pro forma
conversion calculations utilized in analyzing the Association's valuation
ratios.
Investors continue to make decisions to purchase thrift conversion stocks
and more seasoned thrift issues based upon consideration of core earnings
profitability and price/book comparisons. Utilizing a discount of approximately
38% to the corresponding comparative group average, the Association's resulting
pro forma price/book ratio at the midpoint is 57.3%, reflecting a maximum
price/book valuation of 61.3% at the high end of the range and an adjusted
maximum of 65.2%. As shown on Table 26, the Association's pro forma price/book
ratio of 65.2% at the adjusted maximum represents a 29% discount to the
comparative group's average. The Association's pro forma price/book ratios
reflect greater discounts to the all public and New York thrift aggregates.
The price/earnings ratio is also important and was examined in deriving our
estimate of pro forma market value. Given the variability in earnings,
investors often encounter some difficulty in evaluating thrift offerings based
upon price/earnings multiples. Recently, the special SAIF assessment depressed
the earnings of most thrifts. Therefore, we have evaluated core earnings for
the last twelve months ("LTM"), which attempts to exclude extraordinary items.
Based on the Association's LTM core earnings and the net conversion-related
returns and adjustments, the Association is valued at a midpoint price/earnings
ratio of 14.1x. This pro forma ratio represents a 7% discount to the
comparative group average of 15.1x. At the
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FELDMAN FINANCIAL ADVISORS, INC.
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maximum of the Association's pro forma valuation range, the valuation repesents
an 8% discount from 8% to 1% with respect to the comparative group's average
price/earnings ratio for the LTM and a 2% premium with respect to the
comparative group's average price/core earnings ratio for the LTM.
In contrast to the aggregates, the Association's lower price/assets ratio
was largely related to its lower capital level. Based on the midpoint offering,
the Holding Company's pro forma equity/assets ratio is projected at 10.38% and
increases to 11.08% at the maximum offering and 11.87% at the adjusted maximum.
VALUATION CONCLUSION
- --------------------
It is our opinion that, as of September 4, 1998, the aggregate estimated
pro forma market value of the Association was within the valuation range of
$1,275,000 to $1,725,000 with a midpoint of $1,500,000. The valuation range was
based upon a 15 percent decrease from the midpoint to determine the minimum and
a 15 percent increase to establish the maximum. Assuming an additional 15
percent increase above the maximum valuation would result in an adjusted maximum
of $1,983,750. Exhibit IV-3 displays the conversion calculations and assumptions
utilized in determining the Association's estimated pro forma market value.
-67-
Table 25
Comparative Valuation Analysis
Peoples Bankcorp and the Comparative Group
Market Price Data as of September 4, 1998
- ----------------------------------------------------------------------------------------------------------------------------------
Current Total Price/ Price/ Price/ Price/ Price/ Tang. Current
Stock Market LTM Core Book Tang. Total Equity/ Dividend
Price Value EPS(1) EPS(1) Value Book Assets Assets Yield
Company State ($) ($M) (x) (x) (%) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Peoples Bankcorp
Pro Forma Minimum NA 1.28 12.3 12.5 52.7 52.7 5.10 9.67 NA
Pro Forma Midpoint NA 1.50 13.9 14.1 57.3 57.3 5.95 10.38 NA
Pro Forma Maximum NA 1.73 15.3 15.4 61.3 61.3 6.79 11.08 NA
Pro Forma Super Maximum NA 1.98 16.8 16.9 65.2 65.2 7.74 11.87 NA
Comparative Group Average NA 5.58 16.7 15.1 92.1 92.6 9.82 10.66 1.23
All Public Thrift Average (2) NA 165.86 16.2 17.9 124.3 129.1 15.37 12.89 1.90
New York Thrift Average (3) NA 429.94 16.6 16.6 118.6 131.0 15.63 12.90 1.80
Comparative Group
- --------------------------------
Albion Banc Corp. NY 8.63 6.49 16.9 18.0 103.1 103.1 8.76 8.49 1.39
AmTrust Capital Corp. IN 13.56 6.92 28.9 67.8 92.1 92.9 10.60 11.42 1.47
Cecil Bancorp, Incorporated MD 24.12 11.34 17.2 14.0 145.4 145.4 16.68 11.47 1.66
Home Building Bancorp, Inc. IN 20.00 6.23 19.2 19.2 95.0 95.0 13.96 13.76 1.50
Kenwood Bancorp, Incorporated OH 13.13 3.87 11.9 8.9 85.3 85.3 8.13 9.54 2.13
Lenox Bancorp, Incorporated OH 16.00 6.47 34.8 30.8 90.4 90.4 11.63 12.86 1.25
MCM Savings Bank, FSB MO 20.00 3.65 12.4 10.2 85.1 85.1 5.56 6.50 1.00
Mid-Central Financial
Corporation MN 26.50 5.90 10.6 10.5 102.9 102.9 9.38 9.12 1.13
Mid-Coast Bancorp, Inc. ME 7.5 5.35 12.3 18.8 102.0 102.0 8.19 8.02 2.67
Midwest Savings Bank IL 14.25 2.73 15.2 35.6 86.6 86.6 6.31 7.28 0.00
Mutual Community Savings
Bank, NC 14.50 5.26 13.6 13.4 65.5 71.3 8.27 11.72 2.48
St. Landry Financial
Corporation LA 17.25 6.92 25.4 22.7 99.9 99.9 11.00 11.01 0.58
Vermilion Bancorp, Inc. IL 11.25 4.16 15.2 40.2 67.5 67.5 9.64 14.29 0.00
West Town Bancorp,
Incorporate IL 12.50 2.78 18.1 15.6 68.4 68.4 9.37 13.70 0.00
- ----------------------------------------------------------------------------------------------------------------------------------
(1) Price/earnings ratios greater than 30.0 are excluded from averages.
(2) Includes 380 non-MHC thrifts not under contract to be acquired.
(3) Includes 26 non-MHC thrifts not under contract to be acquired.
- 68 -
Table 26
Comparative Discount and Premium Analysis
Market Price Data as of September 4, 1998
Relative Premiums (Discounts)
-------------------------------
Comp. All All
Valuation Peoples Group Public New York
Ratio Symbol Bankcorp Average Thrifts(1) Thrifts(2)
--------- ------ -------- ------- ---------- ----------
Price / LTM EPS(3) P/E 16.7 16.2 16.6
Minimum (x) 12.3 -26% -24% -26%
Midpoint 13.9 -17% -15% -17%
Maximum 15.3 -8% -6% -8%
Super Maximum 16.8 1% 3% 1%
Price / Core EPS(3) P/E 15.1 17.9 16.6
Minimum (x) 12.5 -18% -30% -25%
Midpoint 14.1 -7% -21% -15%
Maximum 15.4 2% -14% -7%
Super Maximum 16.9 12% -5% 2%
Price / Book Value P/B 92.1 124.3 118.6
Minimum (%) 52.7 -43% -58% -56%
Midpoint 57.3 -38% -54% -52%
Maximum 61.3 -33% -51% -48%
Super Maximum 65.2 -29% -48% -45%
Price / Tangible Book P/B 92.6 129.1 131.0
Minimum (%) 52.7 -43% -59% -60%
Midpoint 57.3 -38% -56% -56%
Maximum 61.3 -34% -53% -53%
Super Maximum 65.2 -30% -50% -50%
Price / Total Asset P/A 9.82 12.89 12.90
Minimum (%) 5.10 -48% -60% -60%
Midpoint 5.95 -39% -54% -54%
Maximum 6.79 -31% -47% -47%
Super Maximum 7.74 -21% -40% -40%
- -------------
(1) Includes 380 publicly traded thrifts nationwide.
(2) Includes 25 publicly traded thrifts based in New York.
(3) Price/earnings ratio averages exclude values greater than 30.
- 69 -
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
EXHIBIT I
DESCRIPTION OF FELDMAN FINANCIAL ADVISORS AND SENIOR PROFESSIONAL STAFF
OVERVIEW OF FIRM
- ----------------
FELDMAN FINANCIAL ADVISORS provides consulting services to financial
institutions and mortgage companies in the areas of corporate valuations,
mergers and acquisitions, strategic planning, branch sales and purchases,
developing and implementing regulatory business and capital plans, enhancing
franchise value, portfolio analysis and restructuring, advising on retail branch
strategies, evaluating bank management, regulatory analysis, and expert witness
testimony and analysis.
FELDMAN FINANCIAL ADVISORS was incorporated in February 1996 by a group of
consultants who were previously associated with Kaplan Associates. Each of the
principals at Feldman Financial Advisors has more than 10 years experience in
consulting and all were officers of their former employer. Our principals
collectively have worked with more than 1,000 banks, thrifts and mortgage
companies nationwide. The firm's office is located in downtown Washington, D.C.
BACKGROUND OF SENIOR PROFESSIONAL STAFF
- ---------------------------------------
TRENT FELDMAN, President--Trent is a nationally recognized expert in valuing
financial institutions, providing strategic advice to financial institutions,
and advising on mergers and acquisitions for banks and thrifts of all sizes.
Trent was with Kaplan Associates for 14 years and was one of three founding
principals at that firm. Trent also has worked in the Chairman's Office of the
Federal Home Loan Bank Board, the Federal Savings and Loan Insurance
Corporation, and with the California state legislature. Trent holds Bachelors
and Masters degrees from the University of California at Los Angeles.
PETER WILLIAMS, Principal--Peter specializes in merger and acquisition analysis,
corporate valuations, strategic business plans and retail branch analysis. Peter
was with Kaplan Associates for 13 years. Peter also served as a Corporate
Planning Analyst with the Wilmington Trust Company in Delaware. Peter holds a BA
in Economics from Yale University and an MBA in Finance from George Washington
University.
MICHAEL GREEN, Principal--Mike is an expert in mergers and acquisition analysis,
financial institution valuations, and business plans. During Mike's 10 years at
Kaplan Associates, his experience also included mark-to-market analysis,
goodwill valuations and core deposit studies. Mike holds a BS in Finance and
Economics from Rutgers College.
LINDA FARRELL, Principal--Linda is nationally known for her expertise in branch
purchases and sales, and she specializes in small bank mergers and acquisitions,
retail banking analysis, business plans and management reviews. Linda was with
Kaplan Associates for 12 years. Linda also was a Senior Vice President of Retail
Banking at Western Savings in Salt Lake City and a consultant with both Arthur
Young & Company and Richard T. Pratt Associates. Linda holds a BA in English
from Oklahoma State University and an MBA from the University of Utah.
GREG IZYDORCZYK, Vice President--Greg specializes in merger and acquisition
analysis and corporate valuations and also has experience in mark-to-market
analysis and business plans. Greg was with Kaplan Associates for three years.
Greg also has four years experience as a Senior Auditor in the commercial
banking industry for First Virginia and Integra Financial. Greg worked as a
Financial Analyst with Airbus Industrie of North America for two years
performing analysis on the airline industry and airline capital markets (debt
and leasing) in North America, preparing financial proposals in conjunction with
commercial sales proposals and analyzing the Company's current and potential
financing portfolio. Greg holds a BS in Finance from Pennsylvania State
University and an MBA in Finance from the Katz Graduate School, University of
Pittsburgh.
70
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Exhibit II-1
STATEMENT OF FINANCIAL CONDITION
As of December 31, 1997 and 1998 and June 30, 1998
(Dollars in Thousands)
June 30, December 31,
1998 1997 1996
------------ ------------ ------------
ASSETS
- ------
Cash and due form banks $ 622 $ 674 $ 671
Interest-bearing deposits with other banks 617 553 900
Securities available-for-sale -- 737 804
Securities held-to-maturity 3,546 4,031 3,561
Loans, net of deferred fees 18,863 16,832 15,475
Less allowance for loan losses 165 164 116
------------ ------------ ------------
Loans receivable, net 18,698 16,668 15,359
Premises and equipment 426 434 455
Federal Home Loan Bank stock, at cost 139 137 136
Accrued interest receivable 150 125 92
Real estate owned 40 40 --
Other assets 9 3 20
------------ ------------ ------------
TOTAL ASSETS $ 24,247 $ 23,402 $ 21,998
============ ============ ============
LIABILITIES
- -----------
Deposits:
Demand accounts 735 638 470
Savings and club accounts 3,131 2,733 2,687
Time certificates 16,519 16,306 15,358
NOW and money market accounts 1,971 2,088 1,974
------------ ------------ ------------
Total deposits 22,356 21,756 20,489
Advances by borrowers for taxes/insurance 3 3 5
Other liabilities 240 57 27
------------ ------------ ------------
TOTAL LIABILITIES 22,599 21,825 98,992,034
------------ ------------ ------------
EQUITY
Retained earnings 1,648 1,576 1,488
Accumulated other comprehensive income -- 1 (1)
------------ ------------ ------------
Total equity 1,648 1,577 1,487
------------ ------------ ------------
TOTAL LIABILITIES AND
RETAINED EARNINGS $ 24,247 $ 23,402 $ 21,998
============ ============ ============
II-1
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Exhibit II-2
STATEMENT OF INCOME
For the Year Ended December 31, 1996 and 1997
And the Six Months Ended June 30, 1997 and 1998
(Dollars in Thousands)
Six Months Ended Year Ended
June 30, March 31,
---------------- ---------------
1998 1997 1997 1996
------- ------ ------- ------
Interest income
Loans $727 645 1,330 1,266
Securities 127 132 277 260
Other short-term investments 28 35 55 66
Total interest income 882 812 1,662 1,592
Interest expense
Deposits 522 477 998 954
Borrowings - - - 1
----- ----- ----- -----
Total interest expense 522 477 998 955
Net interest income 360 335 664 637
Provision for loan losses 3 - 57 -
----- ----- ----- -----
Net interest income after prov. 357 335 607 637
Noninterest income:
Service charges 14 11 30 14
Net gain on sale of securities 1 - - -
Other 7 9 14 16
----- ----- ----- -----
Total noninterest income 22 20 44 30
Noninterest expense:
Salaries and employee benfits 140 128 258 258
Directors fees 31 32 59 54
Building, occupance and equipment 27 32 73 59
Data processing 15 14 28 27
Postage and supplies 12 8 25 23
Deposit insurance premium 7 4 11 174
Insurance 5 7 17 14
Other 44 25 54 47
----- ----- ----- -----
Total noninterest expense 281 250 525 656
Income before taxes 98 105 126 11
Income tax expense 26 28 38 3
----- ----- ----- -----
Net income (loss) $72 77 88 8
===== ===== ===== =====
II-2
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Exhibit II-3
LOAN PORTFOLIO COMPOSITION
As of December 31, 1996 and 1997 and June 30, 1998
(Dollars in Thousands)
At June 30, At December 31,
------------------------- ----------------------------------------------------------
1998 1997 1996
------------------------- -------------------------- ---------------------------
Amount Percent Amount Percent Amount Percent
----------- ------------ ------------ ------------ ------------ -------------
Mortgage loans:
Residential $12,377 65.62% $11,893 70.66% $11,838 76.50%
Commercial 726 3.85 706 4.19 553 3.57
Construction 199 1.05 67 0.40 115 0.74
------- ------ ------- ------ ------- ------
Total mortgage loans 13,302 70.52 12,666 75.25 12,506 80.81
Other loans:
Commercial 200 1.06 100 0.59 -- 0.00
Automobile 3,299 17.49 2,121 12.60 1,400 9.05
Home equity 1,061 5.62 1,226 7.28 903 5.84
Passbook 219 1.16 217 1.29 207 1.74
Other 803 4.26 526 3.13 422 2.73
------- ------ ------- ------ ------- ------
5,582 29.59 4,190 24.89 2,995 19.35
Total loans 18,884 100.11 16,856 100.14 15,501 100.17
Less:
Net deferred fees 21 -0.11 24 -0.14 26 -0.17
------- ------ ------- ------ ------- ------
Loans receivable, net $18,863 100.00% $16,832 100.00% $15,475 100.00%
======= ====== ======= ====== ======= ======
II-3
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Exhibit II-4
NET LENDING ACTIVITY
For the Year Ended December 31, 1996 and 1997
and Six Months Ended June 30, 1997 and 1998
(Dollars in Thousands)
Six Months
Ended Year Ended
June 30, December 31,
------------------------ ------------------------
1998 1997 1997 1996
----------- ----------- ----------- -----------
Loans originated:
Real estae loans:
One- to four-family residential $1,708 $ 697 $1,501 $1,953
Commercial 35 90 104 115
Automobile 1,726 677 1,674 908
Home equity 30 249 473 472
Passbook 36 28 64 199
Commercial 100 -- 100 --
Other 430 152 25 24
------ ------ ------ ------
Total loans originated $4,065 $1,893 $4,341 $3,871
====== ====== ====== ======
II-4
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Exhibit II-5
INVESTMENT SECURITIES PORTFOLIO
As of December 31, 1996 and 1997
and June 30, 1998
(Dollars in Thousands)
At June 30, At December 31,
---------------------------- --------------------------------------------------------
1998 1997 1996
---------------------------- ------------------------- --------------------------
Carrying Percent of Carrying Percent of Carrying Percent of
Value Portfolio Value Portfolio Value Portfolio
----------- -------------- ---------- ------------ ---------- -------------
INVESTMENT SECURITIES
Available-for-sale
Mortgage-backed securities $ -- 0.00% $ 737 18.28% $ 804 22.58%
MORTGAGE-BACKED SECURITIES
Held to maturity:
U.S. Government securities 3,482 98.20 3,962 98.29 3,470 97.44
Mortgage-backed securities 64 1.80 69 1.71 91 2.56
------ ------ ------ ------ ------ ------
Total investments $3,546 100.00% $4,768 100.00% $4,365 100.00%
====== ====== ====== ====== ====== ======
II-5
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Exhibit II-6
DEPOSIT ACCOUNT DISTRIBUTION
As June 30, 1998
(Dollars in Thousands)
INTEREST MINIMUM BALANCES IN PERCENTAGE OF
RATE CATEGORY AMOUNT THOUSANDS TOTAL DEPOSITS
- --------------- --------------------------------- --------------- -------------- -----------------
--% Demand accounts $ 100 $ 735 3.29%
3.09% Savings and club accounts 100 3,131 14.00
1.01%-2.57% NOW and money market 100 - 2,500 1,971 8.82
TIME CERTIFICATES
4.00-4.99% Fixed-term, fixed-rate 1,000 114 0.51%
5.00-5.99% Fixed-term, fixed-rate 1,000 15,727 70.35
6.00-6.99% Fixed-term, fixed-rate 1,000 675 3.03
------- ------
$22,356 100.00%
======= ======
II-6
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Exhibit II-7
BORROWING ACTIVITY
Year Ended March 31, 1996 and 1997
and Five Months Ended August 31, 1997
(Dollars in Thousands)
Five Months
Ended Year Ended
August 31, March 31,
---------- ----------------
1997 1997 1996
----- ----- -----
Maximum amount of borrowings
outstanding at any month end
during the period:
FHLB advances $ 0 $ 0 $ 0
Average amount of borrowings
outstanding during the period:
FHLB advances 0 0 0
Approximate weighted average
interest rate during the period:
FHLB advances 0.00% 0.00% 0.00%
II-7
FELDMAN FINANCIAL ADVISORS, INC.
- -------------------------------
Exhibit III
Market Valuation and Financial Data for All Public Thrifts
====================================================================================================================================
Tang. LTM LTM Total
Total Equity/ Core Core Market
Assets Assets ROAA ROAE Value
Company Ticker Exchange St. ($000) (%) (%) (%) ($M)
====================================================================================================================================
Non-MHC, Not Under Acquisition
- ------------------------------
1st Bergen Bancorp FBER NASDAQ NJ 300,755 11.60 0.72 5.490 42.01
Abington Bancorp, Inc. ABBK NASDAQ MA 546,208 5.84 0.69 10.310 52.97
Acadiana Bancshares, Inc. ANA AMSE LA 298,148 14.72 1.01 6.250 35.32
Access Anytime Bancorp, Inc. AABC NASDAQ NM 116,921 7.93 1.37 16.610 8.52
Adirondack Financial Services Bancorp AFSB OTC NY 66,028 13.52 NA NA 7.60
Advance Financial Bancorp AFBC NASDAQ WV 110,668 14.09 0.90 5.920 15.43
Albion Banc Corp. ALBC NASDAQ NY 74,118 8.49 0.53 6.180 6.49
Algiers Bancorp, Incorporated ALGC Pinks LA 46,386 19.71 0.27 1.310 6.56
Alliance Bancorp ABCL NASDAQ IL 2,068,197 8.67 0.91 9.900 197.24
Alliance Bancorp of New England ANE AMSE CT 252,287 7.65 0.46 6.200 25.07
AMB Financial Corp. AMFC NASDAQ IN 111,338 12.68 0.53 3.770 13.28
Ambanc Holding Co., Inc. AHCI NASDAQ NY 565,387 10.32 0.41 3.510 53.37
Ameriana Bancorp ASBI NASDAQ IN 375,297 11.97 0.98 8.590 58.55
American Bank of Connecticut BKC AMSE CT 685,545 8.41 1.15 13.620 96.96
AmTrust Capital Corp. ATSB OTC IN 65,270 11.42 0.34 3.180 6.92
Anchor BanCorp Wisconsin, Inc. ABCW NASDAQ WI 2,057,635 6.27 1.12 16.940 394.50
Andover Bancorp, Inc. ANDB NASDAQ MA 1,392,342 8.20 1.17 14.780 178.22
Anson Bancorp, Inc. ANSN OTC NC 21,240 18.54 NA NA 6.65
Argo Bancorp, Incorporated ARGO Pinks IL 259,758 7.17 NA NA 17.67
ASB Financial Corp. ASBP NASDAQ OH 116,437 12.44 0.94 6.670 19.03
Astoria Financial Corporation ASFC NASDAQ NY 11,575,551 6.09 0.79 9.490 1,007.23
Avondale Financial Corp. AVND NASDAQ IL 520,132 8.36 (1.06) (12.650) 36.06
Bancorp Connecticut, Inc. BKCT NASDAQ CT 495,178 9.89 1.24 12.020 83.12
Bank Plus Corporation BPLS NASDAQ CA 4,286,237 3.98 0.27 6.360 140.58
Bank United Corporation BNKU NASDAQ TX 13,095,947 4.67 0.88 17.510 1,119.74
Bank West Financial Corporation BWFC NASDAQ MI 181,512 12.84 0.51 3.730 29.19
BankAtlantic Bancorp, Inc. BANC NASDAQ FL 3,756,571 5.34 0.56 9.370 323.70
BankPlus, FSB BNKP OTC IL 209,989 6.55 0.65 9.940 19.77
BankUnited Financial Corporation BKUNA NASDAQ FL 3,584,123 4.64 0.29 5.620 168.96
Baxley Federal Savings Bank Pinks GA 100,754 14.40 1.43 10.200 9.93
Bay State Bancorp, Inc. BYS AMSE MA 287,617 22.28 0.34 2.440 50.07
Bay View Capital Corporation BVCC NASDAQ CA 5,720,109 4.58 0.58 8.570 344.75
Bedford Bancshares, Inc. BFSB NASDAQ VA 156,509 13.25 1.23 8.800 26.43
Big Foot Financial Corporation BFFC NASDAQ IL 220,604 17.27 NA NA 35.18
Blue River Bancshares, Inc. BRBI NASDAQ IN 350,208 (44.58) NA NA 12.19
BostonFed Bancorp, Inc. BFD AMSE MA 1,058,207 7.55 0.72 8.470 90.34
Broadway Financial Corporation BYFC NASDAQ CA 137,642 9.90 0.26 2.430 7.69
Calumet Bancorp, Inc. CBCI NASDAQ IL 491,961 17.74 1.99 12.010 83.35
Camco Financial Corporation CAFI NASDAQ OH 588,220 9.36 1.26 13.020 87.58
Cameron Financial Corporation CMRN NASDAQ MO 220,784 19.86 1.14 5.450 38.94
====================================================================================================================================
Stock Price/ Price/ Price/ Price/ Price/
Price LTM Core Book Tang. Total Div.
09/04/98 EPS EPS Value Book Assets Yield
Company ($) (x) (x) (%) (%) (%) (%)
====================================================================================================================================
Non-MHC, Not Under Acquisition
- ------------------------------
1st Bergen Bancorp 16.25 19.35 19.35 120.46 120.46 13.97 1.72
Abington Bancorp, Inc. 15.13 12.93 16.09 153.55 168.43 9.78 1.32
Acadiana Bancshares, Inc. 15.50 12.70 13.25 88.47 88.47 13.02 2.84
Access Anytime Bancorp, Inc. 7.00 5.69 5.69 91.98 91.98 7.29 -
Adirondack Financial Services Bancorp 11.50 NA NA 85.19 85.19 11.52 -
Advance Financial Bancorp 14.38 15.13 15.13 99.00 99.00 13.95 2.23
Albion Banc Corp. 8.63 16.91 16.91 103.05 103.05 8.76 1.39
Algiers Bancorp, Incorporated 11.22 40.08 48.79 71.80 71.80 14.15 1.78
Alliance Bancorp 17.25 13.48 11.58 109.18 110.08 9.54 2.55
Alliance Bancorp of New England 10.94 12.15 24.86 138.46 141.50 10.81 1.83
AMB Financial Corp. 14.50 15.26 23.77 94.03 94.03 11.92 1.93
Ambanc Holding Co., Inc. 13.00 24.53 23.21 91.42 91.42 9.44 1.85
Ameriana Bancorp 18.00 15.52 15.38 128.30 130.62 15.60 3.56
American Bank of Connecticut 20.69 11.56 13.70 163.54 168.61 14.14 3.87
AmTrust Capital Corp. 13.56 28.85 28.85 92.06 92.94 10.60 1.47
Anchor BanCorp Wisconsin, Inc. 22.19 19.29 19.29 301.88 306.46 19.24 0.90
Andover Bancorp, Inc. 27.50 11.70 11.90 156.16 156.16 12.80 2.62
Anson Bancorp, Inc. 11.37 NA NA 168.95 168.95 31.32 -
Argo Bancorp, Incorporated 35.50 NA NA 94.34 94.92 6.80 2.03
ASB Financial Corp. 11.50 16.91 16.91 131.28 131.28 16.34 3.48
Astoria Financial Corporation 37.88 11.55 12.22 112.59 157.16 8.68 2.11
Avondale Financial Corp. 12.25 NM NM 86.21 86.21 7.21 -
Bancorp Connecticut, Inc. 16.25 14.13 16.41 169.62 169.62 16.78 3.32
Bank Plus Corporation 7.25 19.59 13.18 75.92 82.76 3.28 -
Bank United Corporation BNKU 35.44 10.36 10.52 167.24 184.09 8.55 1.81
Bank West Financial Corporation 11.13 29.28 33.71 125.28 125.28 16.08 2.16
BankAtlantic Bancorp, Inc. 9.31 13.90 20.70 133.81 173.10 9.09 1.07
BankPlus, FSB 26.00 16.56 16.56 154.95 154.95 9.42 -
BankUnited Financial Corporation 9.50 20.21 20.21 92.32 110.47 4.71 -
Baxley Federal Savings Bank 18.00 6.69 6.69 68.39 68.39 9.85 4.50
Bay State Bancorp, Inc. 19.75 NA NA 72.50 72.50 17.41 -
Bay View Capital Corporation 17.00 20.99 11.81 87.49 134.92 6.03 2.35
Bedford Bancshares, Inc. 11.50 15.13 15.13 127.49 127.49 16.88 2.78
Big Foot Financial Corporation 14.00 28.57 38.89 92.35 92.35 15.95 -
Blue River Bancshares, Inc. 8.13 NA NA NA NA NA -
BostonFed Bancorp, Inc. 16.75 12.98 12.98 103.52 107.23 8.54 2.39
Broadway Financial Corporation 8.25 13.52 25.00 58.84 58.84 5.59 2.24
Calumet Bancorp, Inc. 26.50 9.50 9.30 95.53 95.53 16.94 -
Camco Financial Corporation 16.00 13.68 13.56 150.80 160.32 14.91 2.42
Cameron Financial Corporation 16.00 15.84 15.84 88.79 88.79 17.64 1.75
FELDMAN FINANCIAL ADVISORS, INC.
- -------------------------------
Exhibit III
Market Valuation and Financial Data for All Public Thrifts
====================================================================================================================================
Tang. LTM LTM Total
Total Equity/ Core Core Market
Assets Assets ROAA ROAE Value
Company Ticker Exchange St. ($000) (%) (%) (%) ($M)
====================================================================================================================================
Carnegie Financial Corporation CAFN OTC PA 20,163 5.74 NA NA 2.38
Carolina Fincorp, Inc. CFNC NASDAQ NC 113,911 13.51 1.11 6.140 17.03
Carver Bancorp, Inc. CNY AMSE NY 427,371 8.14 0.22 2.650 21.99
Cascade Financial Corporation CASB NASDAQ WA 444,155 7.07 0.85 12.220 54.39
Catskill Financial Corporation CATB NASDAQ NY 309,566 22.04 1.30 5.390 56.56
Cavalry Bancorp, Inc. CAVB NASDAQ TN 339,846 29.65 NA NA 142.28
CBES Bancorp, Inc. CBES NASDAQ MO 123,710 13.63 0.94 6.090 17.85
CCF Holding Company CCFH NASDAQ GA 158,539 7.28 (0.01) (0.140) 18.79
Cecil Bancorp, Incorporated CECB OTC MD 67,987 11.47 0.95 8.280 11.34
CENIT Bancorp, Inc. CNIT NASDAQ VA 651,857 7.37 0.91 12.570 89.07
Central Co-operative Bank CEBK NASDAQ MA 381,857 8.96 0.63 6.450 38.32
Century Bancorp, Inc. CENB NASDAQ NC 96,866 19.34 1.21 4.880 16.52
CFS Bancorp Inc. CITZ NASDAQ IN 1,098,105 NA NA NA 204.35
CFSB Bancorp, Inc. CFSB NASDAQ MI 847,769 7.78 1.33 17.070 177.63
Charter One Financial, Inc. COFI NASDAQ OH 19,813,254 7.06 1.17 16.220 3,393.60
Chester Valley Bancorp Inc. CVAL NASDAQ PA 377,012 8.45 0.98 11.680 63.54
Citizens Bancorp, Inc. CIBC OTC IN 55,607 28.11 1.61 6.890 11.76
Citizens First Financial Corp. CBK AMSE IL 281,068 13.95 0.59 4.250 36.31
CKF Bancorp, Inc. CKFB NASDAQ KY 62,759 21.57 1.34 5.970 13.92
Classic Bancshares, Inc. CLAS NASDAQ KY 137,984 13.06 0.56 3.710 18.36
CNS Bancorp, Inc. CNSB NASDAQ MO 97,988 24.78 0.89 3.620 24.87
Coastal Bancorp, Inc. CBSA NASDAQ TX 2,980,528 3.37 0.54 15.000 121.05
Coastal Financial Corporation CFCP NASDAQ SC 616,887 5.90 1.14 18.540 118.86
Coddle Creek Financial Corp. CDLC OTC NC 133,559 32.94 NA NA 41.82
Columbia Financial of Kentucky, Inc. CFKY NASDAQ KY 118,968 31.49 NA NA 32.06
Commercial Federal Corporation CFB NYSE NE 8,852,640 6.49 0.97 14.410 1,401.31
Commonwealth Bancorp, Inc. CMSB NASDAQ PA 2,368,247 6.77 0.64 6.910 229.11
Community Federal Bancorp, Inc. CFTP NASDAQ MS 263,246 22.27 1.07 4.280 65.97
Community Financial Corporation CFFC NASDAQ VA 183,230 14.04 0.96 7.040 32.13
Community Investors Bancorp, Inc. CIBI NASDAQ OH 101,734 10.99 0.95 8.170 16.38
Cooperative Bankshares, Inc. COOP NASDAQ NC 381,054 7.95 0.65 8.360 40.49
Crazy Woman Creek Bancorp, Incorporated CRZY NASDAQ WY 61,478 23.43 1.22 5.140 12.44
Crusader Holding Corporation CRSB NASDAQ PA 202,034 10.96 2.34 28.610 48.86
CSB Financial Group, Inc. CSBF NASDAQ IL 47,218 22.18 0.61 2.580 8.31
Cumberland Mountain Bancshares, Inc. CMBN OTC KY 139,915 6.53 0.63 8.920 9.48
D & N Financial Corporation DNFC NASDAQ MI 1,898,004 5.53 0.84 15.350 160.25
Delaware First Financial Corporation DFFN OTC DE 104,050 15.43 NA NA 10.04
Delphos Citizens Bancorp, Inc. DCBI NASDAQ OH 113,585 24.15 1.45 5.560 34.25
Dime Bancorp, Incorporated DME NYSE NY 20,913,891 5.29 0.86 14.770 2,582.88
Dime Community Bancshares, Inc. DCOM NASDAQ NY 1,623,926 10.15 0.86 6.790 219.18
Downey Financial Corp. DSL NYSE CA 5,832,102 7.79 0.88 12.010 655.20
====================================================================================================================================
Stock Price/ Price/ Price/ Price/ Price/
Price LTM Core Book Tang. Total Div.
09/04/98 EPS EPS Value Book Assets Yield
Company ($) (x) (x) (%) (%) (%) (%)
====================================================================================================================================
Carnegie Financial Corporation 10.00 NA NA NA NA NA -
Carolina Fincorp, Inc. 8.94 14.65 12.41 110.62 110.62 14.95 2.69
Carver Bancorp, Inc. 9.50 19.79 22.62 61.25 63.38 5.14 -
Cascade Financial Corporation 12.75 17.00 16.78 173.00 173.00 12.24 -
Catskill Financial Corporation 12.75 14.01 14.33 81.11 81.11 18.48 2.90
Cavalry Bancorp, Inc. 18.88 NA NA 141.17 141.17 41.87 1.06
CBES Bancorp, Inc. 19.00 17.12 17.12 105.91 105.91 14.43 2.53
CCF Holding Company 21.00 100.00 NM 162.79 162.79 11.85 3.05
Cecil Bancorp, Incorporated 24.12 17.23 17.23 145.39 145.39 16.68 1.66
CENIT Bancorp, Inc. 17.75 13.65 13.76 163.75 176.79 13.61 2.25
Central Co-operative Bank 19.50 12.26 16.39 102.96 113.04 10.03 1.64
Century Bancorp, Inc. 13.00 12.26 12.38 88.20 88.20 17.06 5.23
CFS Bancorp Inc. 9.13 NA NA NA NA NA -
CFSB Bancorp, Inc. 21.75 16.23 16.60 269.18 269.18 20.95 2.39
Charter One Financial, Inc. 26.63 20.17 15.75 229.72 244.04 17.15 2.10
Chester Valley Bancorp Inc. 26.00 17.57 18.57 199.54 199.54 16.85 1.61
Citizens Bancorp, Inc. 11.12 NA NA 75.24 75.24 21.16 -
Citizens First Financial Corp. 14.38 18.67 22.82 92.56 92.56 12.92 -
CKF Bancorp, Inc. 16.50 16.50 16.50 95.43 95.43 22.17 3.27
Classic Bancshares, Inc. 14.13 17.88 23.54 89.46 104.01 13.30 2.27
CNS Bancorp, Inc. 15.13 28.54 28.54 102.47 102.47 25.39 1.98
Coastal Bancorp, Inc. 16.00 8.08 7.88 106.67 122.42 4.06 2.00
Coastal Financial Corporation 19.00 18.45 19.79 326.46 326.46 19.27 1.47
Coddle Creek Financial Corp. 62.00 NA NA 95.06 95.06 31.31 1.61
Columbia Financial of Kentucky, Inc. 12.00 NA NA 85.59 85.59 26.95 2.33
Commercial Federal Corporation 23.06 14.24 11.25 150.84 170.21 10.96 0.95
Commonwealth Bancorp, Inc. 15.00 17.44 15.63 116.19 147.49 9.80 2.13
Community Federal Bancorp, Inc. 15.00 22.39 25.86 101.01 101.01 25.06 2.13
Community Financial Corporation 12.50 18.12 18.66 124.38 124.88 17.53 2.24
Community Investors Bancorp, Inc. 12.94 19.03 18.48 154.58 154.58 16.98 1.86
Cooperative Bankshares, Inc. 13.38 18.07 18.07 133.75 133.75 10.63 -
Crazy Woman Creek Bancorp, Incorporated 13.25 15.96 15.96 86.32 86.32 20.23 3.02
Crusader Holding Corporation 12.75 10.04 10.04 210.40 222.13 24.19 -
CSB Financial Group, Inc. 10.13 27.36 28.93 75.90 80.42 17.60 -
Cumberland Mountain Bancshares, Inc. 14.00 NA NA 103.86 103.86 6.78 -
D & N Financial Corporation 17.50 10.74 11.01 151.52 152.71 8.44 1.14
Delaware First Financial Corporation 8.68 NA NA 62.54 62.54 9.65 -
Delphos Citizens Bancorp, Inc. 18.53 20.59 20.59 124.87 124.87 30.16 1.30
Dime Bancorp, Incorporated 22.75 14.68 14.13 194.11 236.00 12.35 0.88
Dime Community Bancshares, Inc. 18.00 16.51 17.14 117.65 135.03 13.50 2.22
Downey Financial Corp. 23.31 11.54 12.74 142.76 144.26 11.23 1.37
FELDMAN FINANCIAL ADVISORS, INC.
- -------------------------------
Exhibit III
Market Valuation and Financial Data for All Public Thrifts
====================================================================================================================================
Tang. LTM LTM Total
Total Equity/ Core Core Market
Assets Assets ROAA ROAE Value
Company Ticker Exchange St. ($000) (%) (%) (%) ($M)
====================================================================================================================================
Eagle BancGroup, Inc. EGLB NASDAQ IL 174,085 12.05 0.36 3.070 18.54
Eagle Bancshares, Inc. EBSI NASDAQ GA 1,120,232 6.92 0.89 11.510 98.77
East Side Financial, Incorporated ESDF OTC IL 79,143 15.87 0.69 4.300 8.76
East Texas Financial Services, Inc. ETFS NASDAQ TX 122,594 17.28 0.53 3.010 19.40
EFC Bancorp, Inc. EFC AMSE IL 397,644 23.67 0.84 7.760 76.79
Elmira Savings Bank, FSB ESBK NASDAQ NY 231,725 6.27 0.39 6.240 17.44
Emerald Financial Corporation EMLD NASDAQ OH 617,369 8.41 1.13 14.020 123.29
Empire Federal Bancorp, Inc. EFBC NASDAQ MT 106,940 36.22 1.45 3.940 32.56
Enterprise Federal Bancorp, Inc. EFBI NASDAQ OH 406,893 8.83 0.66 6.300 60.53
Equality Bancorp, Inc. EBI AMSE MO 273,361 9.58 0.59 6.760 32.92
Equitable Federal Savings Bank EQSB NASDAQ MD 350,555 5.12 0.70 13.600 28.14
ESB Financial Corp. ESBF NASDAQ PA 956,146 6.31 0.66 8.610 84.88
Essex Bancorp, Inc. ESX AMSE VA 214,391 6.97 (0.24) (3.130) 2.32
Falmouth Bancorp, Inc. FCB AMSE MA 110,523 21.38 0.84 3.590 24.37
FCB Financial Corp. FCBF NASDAQ WI 515,516 14.62 1.32 9.290 105.11
Federal Trust Corporation FDTR NASDAQ FL 151,934 8.45 NA NA 13.59
FFBS BanCorp, Inc. FFBS OTC MS 150,806 15.42 1.13 6.890 39.49
FFD Financial Corporation FFDF NASDAQ OH 100,104 22.28 0.79 3.300 24.57
FFLC Bancorp, Inc. FFLC NASDAQ FL 412,443 12.80 0.95 7.230 65.49
FFW Corporation FFWC NASDAQ IN 203,311 8.72 0.90 9.390 21.87
FFY Financial Corp. FFYF NASDAQ OH 651,746 12.92 1.21 9.100 118.32
Fidelity Bancorp, Inc. FSBI NASDAQ PA 396,180 7.09 0.72 10.530 36.52
Fidelity Bancorp, Inc. FBCI NASDAQ IL 501,708 10.59 0.58 5.510 59.86
Fidelity Federal Bancorp FFED NASDAQ IN 197,436 6.78 (0.15) (2.420) 11.34
Fidelity Financial of Ohio, Inc. FFOH NASDAQ OH 531,926 11.19 0.87 7.000 72.79
First Allen Parish Bancorp, Incorporated FALN Pinks LA 34,128 13.77 0.58 4.220 6.35
First Bancshares, Inc. FBSI NASDAQ MO 172,173 13.65 1.09 7.860 28.22
First Bell Bancorp, Inc. FBBC NASDAQ PA 756,638 10.16 1.09 10.260 103.96
First Citizens Corporation FSTC NASDAQ GA 379,694 8.34 1.46 14.620 71.33
First Coastal Bankshares, Inc. FCBK NASDAQ VA 603,753 7.50 0.69 9.770 71.03
First Coastal Corporation FCME NASDAQ ME 171,719 8.95 0.73 7.520 15.99
First Defiance Financial Corp. FDEF NASDAQ OH 582,124 17.74 0.92 4.900 96.87
First Essex Bancorp, Inc. FESX NASDAQ MA 1,314,752 5.28 0.81 10.950 121.00
First Federal Bancorp, Inc. FFBZ NASDAQ OH 207,381 7.95 0.82 10.730 31.51
First Federal Bancorporation BDJI NASDAQ MN 121,315 10.45 0.71 6.720 14.72
First Federal Bancshares of Arkansas, Inc. FFBH NASDAQ AR 578,142 14.71 1.00 6.710 91.55
First Federal Capital Corp. FTFC NASDAQ WI 1,584,405 7.17 1.22 17.530 264.10
First Federal Financial Bancorp, Incorporated FFFB OTC OH 61,472 16.40 0.35 2.040 9.86
First Federal Financial Corporation of Kentucky FFKY NASDAQ KY 409,651 12.76 1.53 11.380 97.56
First Federal Savings & Loan of East Hartford FFES NASDAQ CT 980,415 7.20 0.64 9.390 69.02
First Financial Holdings Inc. FFCH NASDAQ SC 1,874,198 6.49 0.89 14.040 252.26
====================================================================================================================================
Stock Price/ Price/ Price/ Price/ Price/
Price LTM Core Book Tang. Total Div.
09/04/98 EPS EPS Value Book Assets Yield
Company ($) (x) (x) (%) (%) (%) (%)
====================================================================================================================================
Eagle BancGroup, Inc. 15.75 28.64 28.13 88.38 88.38 10.65 -
Eagle Bancshares, Inc. 17.00 11.56 11.89 127.25 127.25 8.81 3.76
East Side Financial, Incorporated 27.63 16.54 17.48 69.76 69.76 11.07 2.39
East Texas Financial Services, Inc. 13.25 30.81 30.81 96.29 96.29 16.64 1.51
EFC Bancorp, Inc. 10.25 NA NA 81.61 81.61 19.31 -
Elmira Savings Bank, FSB 24.00 16.00 19.05 117.94 117.94 7.53 2.67
Emerald Financial Corporation 12.00 18.75 18.75 234.83 237.62 19.97 1.17
Empire Federal Bancorp, Inc. 13.13 19.59 19.59 84.03 84.03 30.44 2.44
Enterprise Federal Bancorp, Inc. 27.38 23.60 27.65 165.21 168.77 14.88 3.65
Equality Bancorp, Inc. 13.06 NA NA 125.61 125.61 12.03 1.84
Equitable Federal Savings Bank 23.00 13.22 13.22 156.78 156.78 8.03 -
ESB Financial Corp. 15.75 15.14 15.29 133.02 149.01 9.33 2.29
Essex Bancorp, Inc. 2.19 NM NM NM 31.44 1.08 -
Falmouth Bancorp, Inc. 16.75 20.68 27.92 103.14 103.14 22.05 1.43
FCB Financial Corp. 27.25 15.14 15.14 139.46 139.46 20.39 3.23
Federal Trust Corporation 2.75 NA NA 105.77 105.77 8.94 -
FFBS BanCorp, Inc. 25.06 24.33 24.33 163.90 163.90 26.18 2.39
FFD Financial Corporation 17.00 23.29 32.69 110.17 110.17 24.55 1.76
FFLC Bancorp, Inc. 17.50 16.83 17.68 124.03 124.03 15.88 2.06
FFW Corporation 15.00 11.36 12.50 114.33 124.28 10.76 2.80
FFY Financial Corp. 29.50 14.90 15.21 140.48 140.48 18.15 2.71
Fidelity Bancorp, Inc. 18.50 13.03 13.31 130.01 130.01 9.22 1.95
Fidelity Bancorp, Inc. 21.13 72.84 21.13 112.55 112.73 11.93 1.89
Fidelity Federal Bancorp 3.63 NM NM 84.70 84.70 5.74 5.52
Fidelity Financial of Ohio, Inc. 13.00 14.77 15.29 110.26 123.93 13.68 2.46
First Allen Parish Bancorp, Incorporate 24.00 30.38 30.77 135.06 135.06 18.60 1.25
First Bancshares, Inc. 12.75 15.00 15.18 115.80 120.74 16.39 0.94
First Bell Bancorp, Inc. 16.00 12.50 12.50 135.82 135.82 13.80 2.50
First Citizens Corporation 25.50 14.33 14.66 188.05 229.11 18.77 1.25
First Coastal Bankshares, Inc. 14.25 16.96 16.96 156.94 156.94 11.76 1.68
First Coastal Corporation 11.75 13.35 14.69 103.98 103.98 9.31 -
First Defiance Financial Corp. 11.88 17.99 17.99 93.80 93.80 16.64 3.03
First Essex Bancorp, Inc. 16.00 12.03 12.60 128.93 177.58 9.20 3.50
First Federal Bancorp, Inc. 10.00 20.00 20.00 191.20 191.20 15.19 1.40
First Federal Bancorporation 14.75 15.21 15.05 116.14 116.14 12.14 -
First Federal Bancshares of Arkansas, I 19.00 15.83 15.83 108.82 108.82 16.01 1.47
First Federal Capital Corp. 14.25 14.84 14.69 221.96 233.22 16.66 1.96
First Federal Financial Bancorp, Incorp 16.75 41.88 47.86 102.01 102.01 16.73 1.67
First Federal Financial Corporation of K 23.63 15.44 16.07 178.44 187.95 23.82 2.54
First Federal Savings & Loan of East Har 25.13 12.02 11.12 97.65 97.65 7.03 2.71
First Financial Holdings Inc. 18.50 16.09 16.23 207.40 207.40 13.46 2.27
FELDMAN FINANCIAL ADVISORS, INC.
- -------------------------------
Exhibit III
Market Valuation and Financial Data for All Public Thrifts
====================================================================================================================================
Tang. LTM LTM Total
Total Equity/ Core Core Market
Assets Assets ROAA ROAE Value
Company Ticker Exchange St. ($000) (%) (%) (%) ($M)
====================================================================================================================================
First Franklin Corporation FFHS NASDAQ OH 237,679 9.09 0.77 8.400 25.85
First Georgia Holding, Inc. FGHC NASDAQ GA 180,806 7.67 1.16 14.150 49.19
First Independence Corporation FFSL NASDAQ KS 123,366 9.58 0.72 7.310 11.01
First Indiana Corporation FISB NASDAQ IN 1,750,819 9.06 1.15 12.020 252.43
First Kansas Financial Corporation FKAN NASDAQ KS 106,001 19.52 0.68 7.960 15.73
First Keystone Financial, Inc. FKFS NASDAQ PA 390,970 6.50 0.74 10.980 28.96
First Lancaster Bancshares, Inc. FLKY NASDAQ KY 53,002 26.65 1.04 3.460 13.12
First Liberty Financial Corp. FLFC NASDAQ GA 1,511,776 7.15 0.94 12.570 267.38
First Midwest Financial, Inc. CASH NASDAQ IA 421,258 9.19 0.64 5.950 47.23
First Mutual Bancorp, Inc. FMBD NASDAQ IL 379,534 11.76 0.34 2.480 58.70
First Mutual Savings Bank FMSB NASDAQ WA 470,866 7.23 0.90 13.010 54.11
First Northern Capital Corporation FNGB NASDAQ WI 690,372 10.89 0.98 8.810 95.24
First Savings Bancorp, Inc. SOPN NASDAQ NC 304,088 22.86 1.76 7.640 78.85
First SecurityFed Financial, Inc. FSFF NASDAQ IL 331,044 27.14 NA NA 78.50
First Source Bancorp, Inc. FSLA NASDAQ NJ 1,221,038 20.69 1.03 8.210 254.00
First Washington Bancorp, Inc. FWWB NASDAQ WA 1,362,063 10.62 1.16 8.580 234.39
FirstBank Corporation FBNW NASDAQ ID 194,432 15.63 1.12 7.620 30.00
FIRSTFED AMERICA BANCORP, INC. FAB AMSE MA 1,315,743 8.86 0.59 5.380 112.47
FirstFed Bancorp, Incorporated FFDB NASDAQ AL 179,893 9.21 0.89 9.220 30.43
FirstFed Financial Corp. FED NYSE CA 4,010,381 5.96 0.72 13.220 315.57
FirstSpartan Financial Corp. FSPT NASDAQ SC 517,433 24.30 1.51 5.920 138.23
FLAG Financial Corporation FLAG NASDAQ GA 442,879 8.71 0.95 10.810 68.58
Flagstar Bancorp, Inc. FLGS NASDAQ MI 2,573,280 5.41 1.37 23.460 287.07
Flushing Financial Corporation FFIC NASDAQ NY 1,091,908 12.39 0.96 7.240 171.83
FMS Financial Corporation FMCO NASDAQ NJ 673,699 6.04 0.85 13.580 81.23
Fort Bend Holding Corp. FBHC NASDAQ TX 318,348 6.79 0.66 10.000 30.20
Fort Thomas Financial Corporation FTSB NASDAQ KY 101,352 16.07 1.18 7.390 19.53
Foundation Bancorp, Incorporated FOUN Pinks OH 37,011 19.15 0.80 4.170 7.71
Frankfort First Bancorp, Inc. FKKY NASDAQ KY 134,485 16.88 1.19 7.010 23.07
FSF Financial Corp. FFHH NASDAQ MN 414,072 10.44 0.79 7.290 42.09
Fulton Bancorp, Inc. FTNB NASDAQ MO 109,622 23.37 1.23 5.010 28.68
GA Financial, Inc. GAF AMSE PA 838,272 12.77 0.97 6.780 96.57
GFSB Bancorp, Inc. GUPB NASDAQ NM 118,175 12.33 0.90 6.670 15.39
Gilmer Financial Services, Inc. GLMR OTC TX 42,243 9.10 (0.05) (0.570) 3.41
Glenway Financial Corp. GFCO NASDAQ OH 300,448 9.49 0.87 9.260 43.39
Golden West Financial Corporation GDW NYSE CA 39,067,229 7.48 1.00 14.640 4,438.80
Great American Bancorp, Inc. GTPS NASDAQ IL 148,342 18.28 0.70 3.600 26.61
Great Pee Dee Bancorp PEDE NASDAQ SC 69,262 45.12 NA NA 26.43
Green Street Financial Corp. GSFC NASDAQ NC 173,265 34.90 1.58 4.460 51.04
GreenPoint Financial Corporation GPT NYSE NY 12,853,902 5.87 1.14 11.840 2,412.94
GS Financial Corp. GSLA NASDAQ LA 145,151 36.04 1.01 2.410 39.20
====================================================================================================================================
Stock Price/ Price/ Price/ Price/ Price/
Price LTM Core Book Tang. Total Div.
09/04/98 EPS EPS Value Book Assets Yield
Company ($) (x) (x) (%) (%) (%) (%)
====================================================================================================================================
First Franklin Corporation 14.50 13.94 14.65 119.24 119.74 10.88 2.07
First Georgia Holding, Inc. 10.25 26.97 26.97 333.88 357.14 27.21 -
First Independence Corporation 11.50 13.53 13.53 93.19 93.19 8.92 2.61
First Indiana Corporation 19.75 13.91 14.11 157.50 159.15 14.42 2.43
First Kansas Financial Corporation 10.13 NA NA 75.22 76.19 14.84 -
First Keystone Financial, Inc. 12.00 9.92 10.00 113.96 113.96 7.41 1.67
First Lancaster Bancshares, Inc. 13.69 25.83 25.83 91.74 91.74 24.44 4.38
First Liberty Financial Corp. 20.00 27.40 31.25 227.79 248.76 17.69 1.50
First Midwest Financial, Inc. 18.13 17.43 19.49 110.52 123.72 11.25 2.65
First Mutual Bancorp, Inc. 16.63 39.58 39.58 105.76 135.83 15.47 1.92
First Mutual Savings Bank 12.75 11.28 13.42 158.98 158.98 11.49 1.57
First Northern Capital Corporation 10.75 14.93 14.93 126.62 126.62 13.79 3.35
First Savings Bancorp, Inc. 21.25 16.35 16.35 113.45 113.45 25.93 4.71
First SecurityFed Financial, Inc. 12.25 NA NA 87.19 87.44 23.71 -
First Source Bancorp, Inc. 8.00 NA NA 97.92 101.14 20.80 2.25
First Washington Bancorp, Inc. 20.13 15.85 15.85 123.09 148.96 17.29 1.79
FirstBank Corporation 15.13 14.27 14.27 91.50 91.50 15.43 2.12
FIRSTFED AMERICA BANCORP, INC. 14.31 16.64 16.84 90.82 90.82 9.00 1.40
FirstFed Bancorp, Incorporated 12.50 18.94 18.94 171.00 185.19 16.92 2.24
FirstFed Financial Corp. 14.88 10.86 10.86 131.29 132.10 7.87 -
FirstSpartan Financial Corp. 32.50 NA NA 109.91 109.91 26.71 1.85
FLAG Financial Corporation 13.25 19.49 18.66 177.61 177.61 15.48 1.81
Flagstar Bancorp, Inc. 21.00 9.77 9.77 201.15 206.69 11.16 1.33
Flushing Financial Corporation 22.00 16.79 16.30 122.91 127.61 15.74 1.64
FMS Financial Corporation 11.25 15.85 15.85 197.72 199.12 12.03 1.07
Fort Bend Holding Corp. 16.63 17.69 17.69 132.79 140.41 9.49 2.41
Fort Thomas Financial Corporation 13.25 16.36 16.36 119.91 119.91 19.27 1.89
Foundation Bancorp, Incorporated 16.65 25.23 25.23 108.75 108.75 20.82 2.40
Frankfort First Bancorp, Inc. 14.25 14.84 14.84 101.64 101.64 17.16 5.61
FSF Financial Corp. 14.38 13.07 13.07 87.81 87.81 10.18 3.48
Fulton Bancorp, Inc. 16.88 24.11 21.09 112.05 112.05 26.18 1.42
GA Financial, Inc. 13.38 11.63 12.27 89.52 90.37 11.52 4.19
GFSB Bancorp, Inc. 14.00 15.38 17.72 115.32 115.32 14.23 2.14
Gilmer Financial Services, Inc. 17.81 NM NM 88.67 88.67 8.06 -
Glenway Financial Corp. 19.00 15.97 17.27 150.79 152.12 14.43 2.32
Golden West Financial Corporation 77.06 11.09 11.07 151.82 151.82 11.36 0.65
Great American Bancorp, Inc. 16.75 27.46 27.46 98.13 98.13 17.94 2.63
Great Pee Dee Bancorp 12.00 NM NA 84.57 84.57 38.15 3.00
Green Street Financial Corp. 12.50 18.38 18.38 84.40 84.40 29.46 3.84
GreenPoint Financial Corporation 28.94 14.76 14.47 163.95 289.96 18.77 2.21
GS Financial Corp. 12.00 24.49 27.91 74.95 74.95 27.01 2.33
Exhibit III
Market Valuation and Financial Data for All Public Thrifts
====================================================================================================================================
Tang. LTM LTM Total
Total Equity/ Core Core Market
Assets Assets ROAA ROAE Value
Company Ticker Exchange St. ($000) (%) (%) (%)
====================================================================================================================================
GSB Financial Corporation GOSB NASDAQ NY 129,087 24.91 0.71 2.870 26.42
Guaranty Federal
Bancshares, Inc. GFED NASDAQ MO 260,043 27.18 1.25 5.090 65.39
Guthrie Savings, Incorporated GTSV OTC OK 48,769 15.58 1.06 6.880 7.04
Hallmark Capital Corp. HALL NASDAQ WI 438,374 7.63 0.67 8.910 34.47
Harbor Federal Bancorp, Inc. HRBF NASDAQ MD 235,733 12.60 0.78 6.090 33.53
Harbor Florida Bancshares, Inc. HARB NASDAQ FL 318,792 19.44 1.31 10.730 322.76
Hardin Bancorp, Inc. HFSA NASDAQ MO 133,326 10.11 0.65 5.800 13.67
Harleysville Savings Bank HARL NASDAQ PA 395,383 6.41 0.97 14.710 49.63
Harrington Financial
Group, Inc. HFGI NASDAQ IN 484,397 4.68 (0.13)( 2.800) 31.53
Harrodsburg First Financial
Bancorp, Inc. HFFB NASDAQ KY 109,033 26.54 1.35 5.060 29.38
Harvest Home Financial
Corporation HHFC NASDAQ OH 96,085 10.71 0.56 4.980 10.99
Haven Bancorp, Inc. HAVN NASDAQ NY 2,265,248 4.99 0.48 8.320 127.21
Hawthorne Financial Corporation HTHR NASDAQ CA 1,201,331 3.97 1.18 23.830 73.92
Haywood Bancshares, Inc. HBS AMSE NC 151,718 14.17 1.44 9.970 23.76
HCB Bancshares, Inc. HCBB NASDAQ AR 221,631 17.08 0.33 1.850 29.10
Hemlock Federal Financial
Corporation HMLK NASDAQ IL 192,271 15.14 0.92 5.280 28.50
Heritage Bancorp, Inc. HBSC NASDAQ SC 300,868 31.47 NA NA 74.64
Heritage Financial Corporation HFWA NASDAQ WA 322,806 28.80 NA NA 108.62
HF Bancorp, Inc. HEMT NASDAQ CA 1,045,837 6.93 0.07 0.880 89.96
HF Financial Corp. HFFC NASDAQ SD 570,060 9.93 1.10 11.460 68.13
HFB Financial Corporation HFBA OTC KY 175,870 10.00 0.86 8.280 20.63
HFS Bank, FSB HFSK Pinks IN 167,714 7.62 0.92 12.100 18.17
High Country Bancorp, Inc. HCBC NASDAQ CO 92,258 19.56 NA NA 15.87
Highland Bancorp, Inc. HBNK NASDAQ CA 573,412 7.87 1.24 16.210 88.52
Hingham Institution for Savings HIFS NASDAQ MA 239,148 9.43 1.27 13.110 29.79
HMN Financial, Inc. HMNF NASDAQ MN 725,180 9.03 0.67 5.260 74.43
Home Bancorp HBFW NASDAQ IN 360,286 11.92 0.83 6.680 63.48
Home Building Bancorp, Inc. HBBI OTC IN 44,662 13.76 0.70 5.070 6.23
Home City Financial Corporation HCFC NASDAQ OH 78,042 13.87 1.29 6.930 10.86
Home Federal Bancorp HOMF NASDAQ IN 719,549 9.09 1.47 16.650 125.91
Home Financial Bancorp HWEN NASDAQ IN 42,560 17.64 0.71 4.090 7.20
Home Loan Financial Corp. HLFC NASDAQ OH 81,915 38.53 1.38 5.400 30.07
Home Port Bancorp, Inc. HPBC NASDAQ MA 260,456 8.71 1.59 16.020 36.38
Home Savings Bank of
Siler City, Inc.S HSSC Pinks NC 58,813 16.70 0.69 4.070 11.07
Homestead Bancorp, Inc. HSTD NASDAQ LA 82,198 7.21 0.53 5.670 10.95
HopFed Bancorp, Inc. HFBC NASDAQ KY 217,837 26.77 1.11 7.580 67.06
Horizon Financial Corp. HRZB NASDAQ WA 553,063 15.44 1.52 9.650 104.83
Horizon Financial Services
Corporation HZFS NASDAQ IA 89,947 9.44 0.79 8.260 13.64
Hudson River Bancorp Inc. HRBT NASDAQ NY 994,055 6.95 NA NA 188.59
Independence Community
Bank Corp. ICBC NASDAQ NY 4,786,156 19.16 NA NA 974.35
Independence Federal
Savings Bank IFSB NASDAQ DC 265,940 7.32 0.43 5.950 16.65
====================================================================================================================================
Stock Price/ Price/ Price/ Price/ Price/
Price LTM Core Book Tang. Total Div.
09/04/98 EPS EPS Value Book Assets Yield
Company ($) (x) (x) (%) (%) (%) (%)
====================================================================================================================================
GSB Financial Corporation 11.75 NA NA 82.17 82.17 20.46 1.02
Guaranty Federal Bancshares, Inc. 10.75 NA NA 87.43 87.43 25.15 3.05
Guthrie Savings, Incorporated 17.00 13.08 13.08 92.69 92.69 14.44 -
Hallmark Capital Corp. 11.75 12.63 12.63 97.59 97.59 7.86 -
Harbor Federal Bancorp, Inc. 18.00 18.37 18.37 112.92 112.92 14.22 2.63
Harbor Florida Bancshares, Inc. 10.50 NA NA 124.85 126.20 24.47 2.48
Hardin Bancorp, Inc. 16.75 16.26 17.27 101.45 101.45 10.26 3.34
Harleysville Savings Bank 29.63 14.67 14.67 195.67 195.67 12.55 1.49
Harrington Financial Group, Inc. 9.63 NM NM 139.09 139.09 6.51 1.25
Harrodsburg First Financial
Bancorp, Inc. 15.25 18.83 18.83 94.25 94.25 27.00 2.62
Harvest Home Financial
Corporation 12.50 20.83 21.93 106.84 106.84 11.44 3.52
Haven Bancorp, Inc. 14.38 14.67 13.96 107.84 112.83 5.62 2.09
Hawthorne Financial Corporation 14.25 9.31 5.70 94.56 94.56 3.76 -
Haywood Bancshares, Inc. 19.00 16.81 10.73 107.47 110.98 15.66 3.16
HCB Bancshares, Inc. 11.00 NA NA 76.12 77.03 13.13 1.82
Hemlock Federal Financial
Corporation 14.50 16.67 16.86 97.91 97.91 14.82 2.21
Heritage Bancorp, Inc. 16.13 NA NA 78.81 78.81 24.81 1.86
Heritage Financial Corporation 11.13 NM NA 116.74 116.74 33.62 1.44
HF Bancorp, Inc. 14.13 NM 100.89 107.41 125.56 8.60 -
HF Financial Corp. 15.50 10.92 11.15 120.34 120.34 11.95 1.81
HFB Financial Corporation 19.00 13.10 14.84 117.28 117.28 11.73 -
HFS Bank, FSB 20.00 12.50 12.50 142.15 142.15 10.83 2.40
High Country Bancorp, Inc. 12.00 NA NA 87.91 87.91 17.20 2.50
Highland Bancorp, Inc. 38.00 12.54 13.67 196.28 196.28 15.44 1.32
Hingham Institution for Savings 22.75 10.83 10.78 131.58 131.58 12.40 2.46
HMN Financial, Inc. 13.75 15.63 18.58 105.44 114.87 10.30 1.75
Home Bancorp 27.00 21.09 21.60 147.78 147.78 17.62 1.19
Home Building Bancorp, Inc. 20.00 19.23 19.61 95.01 95.01 13.96 1.50
Home City Financial Corporation 12.00 11.76 11.76 100.25 100.25 13.91 3.00
Home Federal Bancorp 24.50 12.89 12.89 188.03 192.91 17.50 1.63
Home Financial Bancorp 7.75 16.49 21.53 95.92 95.92 16.92 1.29
Home Loan Financial Corp. 13.38 NA NA 95.26 95.26 36.71 0.37
Home Port Bancorp, Inc. 19.75 11.55 10.45 160.31 160.31 13.97 4.05
Home Savings Bank of
Siler City, Inc. SSB 12.00 44.44 27.27 112.78 112.78 18.83 3.33
Homestead Bancorp, Inc. 7.44 NA NA NA NA NA -
HopFed Bancorp, Inc. 16.63 NA NA 114.97 114.97 30.78 -
Horizon Financial Corp. 14.00 12.50 12.96 122.81 122.81 18.95 3.14
Horizon Financial Services
Corporation 15.50 22.46 18.90 160.62 160.62 15.16 1.16
Hudson River Bancorp Inc. 10.56 NA NA NA NA NA -
Independence Community Bank Corp. 12.81 NA NA 101.45 107.49 20.36 -
Independence Federal Savings Bank 13.00 5.06 14.77 78.69 86.15 6.26 1.92
FELDMAN FINANCIAL ADVISORS, INC.
- -------------------------------
Exhibit III
Market Valuation and Financial Data for All Public Thrifts
==================================================================================================================
Tang. LTM LTM Total
Total Equity/ Core Core Market
Assets Assets ROAA ROAE Value
Company Ticker Exchange St. ($000) (%) (%) (%) ($M)
==================================================================================================================
Industrial Bancorp, Inc. INBI NASDAQ OH 382,841 15.97 1.47 8.810 84.00
InterWest Bancorp, Inc. IWBK NASDAQ WA 2,351,248 6.94 1.03 15.080 397.58
Ipswich Savings Bank IPSW NASDAQ MA 233,662 5.58 1.18 21.920 28.68
ITLA Capital Corporation ITLA NASDAQ CA 1,021,343 10.41 1.44 13.740 121.28
Jacksonville Bancorp, Inc. JXVL NASDAQ TX 242,673 14.46 1.33 9.130 36.63
Jefferson Savings Bancorp, Inc. JSBA NASDAQ MO 1,248,923 8.01 0.70 7.510 170.65
JSB Financial, Inc. JSB NYSE NY 1,563,460 24.31 2.52 10.730 461.28
Kankakee Bancorp, Inc. KNK AMSE IL 401,934 8.46 0.78 7.450 33.81
Kentucky First Bancorp, Inc. KYF AMSE KY 82,046 17.56 1.06 6.230 16.91
Kenwood Bancorp, Incorporated KNWP Pinks OH 47,624 9.54 0.63 6.790 3.87
Klamath First Bancorp, Inc. KFBI NASDAQ OR 1,008,688 12.96 0.91 6.030 138.83
KS Bancorp, Inc. KSAV Pinks NC 128,180 11.70 0.99 7.860 16.00
KSB Bancorp, Inc. KSBK NASDAQ ME 157,745 7.06 1.14 15.000 21.72
Lakeview Financial Corp. LVSB NASDAQ NJ 619,638 6.85 0.86 8.200 107.02
Landmark Bancshares, Inc. LARK NASDAQ KS 229,337 13.07 1.00 7.180 32.84
Laurel Capital Group, Inc. LARL NASDAQ PA 220,986 10.64 1.47 14.020 36.16
Lawrence Savings Bank LSBX NASDAQ MA 344,874 12.07 2.58 25.270 51.95
Lenox Bancorp, Incorporated Pinks OH 54,589 12.86 0.35 2.520 6.47
Lexington B&L Financial Corp. LXMO NASDAQ MO 95,301 15.14 0.77 3.800 14.12
Local Financial Corporation LO AMSE OK 1,904,315 5.02 NA NA 182.27
Logansport Financial Corp. LOGN NASDAQ IN 90,264 18.82 1.50 7.890 18.61
London Financial Corporation LONF OTC OH 36,502 13.22 0.95 5.870 6.71
LSB Financial Corp. LSBI NASDAQ IN 218,633 8.40 0.84 9.900 29.00
MAF Bancorp, Inc. MAFB NASDAQ IL 3,569,656 7.06 1.07 13.790 499.51
Marion Capital Holdings, Inc. MARN NASDAQ IN 193,963 19.08 1.25 5.940 39.20
Market Financial Corporation MRKF NASDAQ OH 53,653 29.33 1.09 3.150 14.69
MASSBANK Corp. MASB NASDAQ MA 929,672 11.63 1.00 8.980 143.11
Mayflower Co-operative Bank MFLR NASDAQ MA 142,965 9.12 1.00 10.390 16.19
MBLA Financial Corp. MBLF NASDAQ MO 207,453 13.50 0.86 6.760 24.63
MCM Savings Bank, FSB MCMS Pinks MO 65,464 6.50 0.47 7.370 3.65
MECH Financial, Inc. MECH NASDAQ CT 954,671 9.71 0.97 9.700 126.42
Medford Bancorp, Inc. MDBK NASDAQ MA 1,135,299 8.52 1.04 11.440 155.91
Metropolitan Financial Corp. METF NASDAQ OH 1,058,887 3.47 0.74 18.680 82.85
MetroWest Bank MWBX NASDAQ MA 658,462 7.34 1.27 17.130 90.85
MFB Corp. MFBC NASDAQ IN 290,936 11.38 0.80 6.420 28.62
Mid-Central Financial Corporation MCFC OTC MN 62,873 9.12 0.96 10.510 5.90
Mid-Coast Bancorp, Inc. MCBN NASDAQ ME 65,309 8.02 0.69 8.300 5.35
Midland Capital Holdings Corp. MCPH OTC IL 117,366 7.47 0.52 7.110 10.19
Midwest Bancshares, Inc. MWBI NASDAQ IA 159,460 7.15 0.76 10.900 11.56
===================================================================================================================================
Stock Price/ Price/ Price/ Price/ Price/
Price LTM Core Book Tang Total Div
09/04/98 EPS EPS Value Book Assets Yield
Company $ (X) (X) (%) (%) (%) (%)
===================================================================================================================================
Industrial Bancorp, Inc. 16.75 15.23 15.23 137.41 137.41 21.94 3.58
InterWest Bancorp, Inc. 25.38 18.13 16.06 236.71 244.23 16.91 2.10
Ipswich Savings Bank 12.00 11.54 11.54 219.78 219.78 12.27 1.33
ITLA Capital Corporation 15.75 9.16 9.16 113.72 114.05 11.87 -
Jacksonville Bancorp, Inc. 15.13 12.00 12.00 104.45 104.45 15.09 3.31
Jefferson Savings Bancorp, Inc. 17.00 18.89 19.54 130.47 161.14 13.65 1.65
JSB Financial, Inc. 46.81 10.31 12.22 121.12 121.12 29.44 3.42
Kankakee Bancorp, Inc. 24.50 12.63 12.69 86.18 100.86 8.41 1.96
Kentucky First Bancorp, Inc. 13.63 18.17 18.41 117.36 117.36 20.61 3.67
Kenwood Bancorp, Incorporated 13.13 11.93 12.38 85.28 85.28 8.13 2.13
Klamath First Bancorp, Inc. 14.00 15.05 15.22 87.39 95.43 13.76 2.57
KS Bancorp, Inc. 18.00 14.88 14.88 106.70 106.70 12.48 4.44
KSB Bancorp, Inc. 17.25 12.23 12.23 173.02 196.92 13.77 0.58
Lakeview Financial Corp. 21.50 9.43 21.29 177.54 260.29 17.27 1.16
Landmark Bancshares, Inc. 22.00 15.60 16.67 113.75 113.75 14.86 2.73
Laurel Capital Group, Inc. 16.50 12.50 12.13 153.77 153.77 16.36 3.64
Lawrence Savings Bank 12.00 5.91 5.91 124.74 124.74 15.06 -
Lenox Bancorp, Incorporated 16.00 34.78 34.78 90.40 90.40 11.63 1.25
Lexington B&L Financial Corp. 14.00 22.58 22.58 92.29 98.94 14.82 2.14
Local Financial Corporation 8.88 NA NA 177.15 191.68 9.57 -
Logansport Financial Corp. 14.75 14.75 14.46 109.58 109.58 20.62 2.98
London Financial Corporation 14.00 15.73 18.92 139.03 139.03 18.39 1.71
LSB Financial Corp. 30.50 16.14 16.14 149.07 149.07 13.30 1.31
MAF Bancorp, Inc. 22.13 13.92 14.18 178.43 199.86 13.99 1.27
Marion Capital Holdings, Inc. 23.00 18.11 18.11 104.12 106.38 20.21 3.83
Market Financial Corporation 11.00 22.00 22.00 93.38 93.38 27.39 2.55
MASSBANK Corp. 39.75 13.61 15.77 130.58 132.32 15.36 2.52
Mayflower Co-operative Bank 18.00 11.04 12.50 122.70 124.48 11.33 4.44
MBLA Financial Corp. 19.75 13.62 13.72 88.25 88.25 11.91 3.04
MCM Savings Bank, FSB 20.00 12.35 12.35 85.07 85.07 5.56 1.00
MECH Financial, Inc. 23.88 14.74 14.83 136.35 136.35 13.24 2.51
Medford Bancorp, Inc. 35.00 13.94 14.40 153.64 161.89 13.73 2.29
Metropolitan Financial Corp. 11.75 12.63 11.75 209.45 225.96 7.82 -
MetroWest Bank 6.38 11.81 11.81 188.05 188.05 13.80 3.14
MFB Corp. 18.00 13.95 13.95 86.50 86.50 9.84 1.89
Mid-Central Financial Corporation 26.50 10.56 10.64 102.91 102.91 9.38 1.13
Mid-Coast Bancorp, Inc. 7.50 12.30 12.30 102.04 102.04 8.19 2.67
Midland Capital Holdings Corp. 28.00 16.87 16.87 116.23 116.23 8.68 1.07
Midwest Bancshares, Inc. 11.00 8.40 10.48 101.38 101.38 7.25 2.91
Midwest Savings Bank 14.25 15.16 17.59 86.63 86.63 6.31 -
Milton Federal Financial Corporation 12.75 17.96 19.62 101.35 101.35 12.13 4.71
FELDMAN FINANCIAL ADVISORS, INC.
- -------------------------------
Exhibit III
Market Valuation and Financial Data for All Public Thrifts
===================================================================================================================
Tang. LTM LTM Total
Total Equity/ Core Core Market
Assets Assets ROAA ROAE Value
Company Ticker Exchange St. ($000) (%) (%) (%) ($M)
===================================================================================================================
Mississippi View Holding Company MIVI OTC MN 66,070 12.32 1.05 6.490 10.22
Monterey Bay Bancorp, Inc. MBBC NASDAQ CA 436,193 9.94 0.32 2.840 62.77
Montgomery Financial Corp. MONT NASDAQ IN 117,163 17.13 0.89 4.980 17.15
MSB Financial, Inc. MSBF NASDAQ MI 79,967 16.65 1.57 9.390 19.07
Mutual Community Savings Bank,
Incorporated, SSB MTUC Pinks NC 63,537 11.72 0.62 4.660 5.26
Mutual Savings Bank, FSB MSBK NASDAQ MI 613,798 5.55 (0.29) (5.250) 28.96
Mystic Financial, Inc. MYST NASDAQ MA 199,049 18.15 0.82 6.060 29.60
NASB Financial, Inc. NASB OTC MO 726,707 9.00 1.83 21.630 132.18
Net.B@nk, Inc. NTBK NASDAQ GA 246,714 15.01 0.65 2.500 119.11
New Hampshire Thrift Bancshares, Inc. NHTB NASDAQ NH 324,320 7.19 0.86 10.970 29.32
NewMil Bancorp, Inc. NMSB NASDAQ CT 367,569 9.09 0.93 9.570 41.22
North Arkansas Bancshares, Inc. NARK OTC AR 44,007 11.87 NA NA 3.70
North Bancshares, Inc. NBSI NASDAQ IL 123,311 10.82 0.34 2.670 15.11
North Central Bancshares, Inc. FFFD NASDAQ IA 331,124 13.13 1.49 8.170 50.23
Northeast Bancorp NBN AMSE ME 310,623 7.05 0.76 9.760 27.07
Northeast Indiana Bancorp, Inc. NEIB NASDAQ IN 203,263 13.04 1.18 8.550 29.62
Northeast Pennsylvania Financial
Corporation NEP AMSE PA 477,807 17.78 0.52 4.250 68.29
Northwest Equity Corporation NWEQ NASDAQ WI 96,452 12.19 1.24 10.620 14.44
NorthWest Indiana Bancorp NWIN OTC IN 323,462 9.36 1.12 12.040 58.72
NS&L Bancorp, Inc. NSLB NASDAQ MO 62,648 18.37 0.67 3.480 10.38
Nutmeg Federal Savings &
Loan Association NTMG NASDAQ CT 112,113 8.30 0.99 11.990 12.92
Ocean Financial Corp. OCFC NASDAQ NJ 1,538,264 13.65 0.93 6.420 224.99
Ocwen Financial Corporation OCN NYSE FL 3,505,579 11.27 2.37 19.640 877.42
Ohio State Financial Services, Inc. OSFS OTC OH 36,645 28.09 0.89 3.350 8.56
OHSL Financial Corp. OHSL NASDAQ OH 247,853 10.83 0.86 7.940 36.51
Oregon Trail Financial Corp. OTFC NASDAQ OR 256,460 26.50 1.15 5.180 56.93
Ottawa Financial Corporation OFCP NASDAQ MI 919,865 6.84 0.89 10.490 135.00
Pamrapo Bancorp, Inc. PBCI NASDAQ NJ 394,271 12.42 1.21 9.360 68.59
Park Bancorp, Inc. PFED NASDAQ IL 196,812 20.34 0.93 4.360 33.85
Parkvale Financial Corporation PVSA NASDAQ PA 1,095,373 7.64 1.08 14.590 155.18
PBOC Holdings, Inc. PBOC NASDAQ CA 3,201,513 5.76 NA NA 229.70
PCB Holding Company PCBH OTC IN 29,085 7.29 NA NA 3.57
Peekskill Financial Corporation PEEK NASDAQ NY 200,341 21.57 1.01 4.110 42.71
PennFed Financial Services, Inc. PFSB NASDAQ NJ 1,551,938 5.86 0.78 10.960 122.02
Pennwood Bancorp, Inc. PWBK NASDAQ PA 46,080 17.28 0.53 2.910 7.67
Peoples Bancorp PFDC NASDAQ IN 304,320 14.97 1.45 9.560 69.19
Peoples Bancorp, Inc. TSBS NASDAQ NJ 873,466 38.36 1.04 5.270 301.97
People's Bancshares, Inc. PBKB NASDAQ MA 858,377 3.63 0.74 17.980 55.54
Peoples Financial Corporation PFFC NASDAQ OH 84,906 17.34 0.59 3.000 14.36
Peoples Heritage Financial
Group, Inc. PHBK NASDAQ ME 9,768,079 6.23 1.20 16.110 1,469.18
Peoples Savings Bank of Troy PESV OTC OH 138,273 10.32 1.34 12.960 53.19
====================================================================================================================
Stock Price/ Price/ Price/ Price/ Price/
Price LTM Core Book Tang. Total Div.
09/04/98 EPS EPS Value Book Assets Yield
Company ($) (x) (x) (%) (%) (%) (%)
====================================================================================================================
Mississippi View Holding Company 17.87 18.23 18.23 125.58 125.58 15.47 0.90
Monterey Bay Bancorp, Inc. 16.00 50.00 50.00 125.10 136.64 14.39 0.75
Montgomery Financial Corp. 10.38 16.21 16.21 85.46 85.46 14.64 2.12
MSB Financial, Inc. 14.25 15.16 15.16 143.22 143.22 23.84 2.11
Mutual Community Savings Bank,
Incorporated, SSB 14.50 13.55 13.94 65.49 71.29 8.27 2.48
Mutual Savings Bank, FSB 6.75 NM NM 84.91 84.91 4.72 --
Mystic Financial, Inc. 1.50 NA NA 86.27 86.27 15.66 1.74
NASB Financial, Inc. 59.25 10.47 9.92 197.30 202.56 18.19 1.69
Net.B@nk, Inc. 19.38 NM NM 319.19 322.38 48.27 --
New Hampshire Thrift Bancshares, Inc. 14.00 10.29 11.11 111.11 127.16 9.04 4.29
NewMil Bancorp, Inc. 10.75 14.53 13.78 123.42 123.42 11.21 2.98
North Arkansas Bancshares, Inc. 10.00 NA NA 69.88 71.07 8.41 --
North Bancshares, Inc. 11.88 35.98 39.58 112.56 112.56 12.18 3.37
North Central Bancshares, Inc. 16.19 12.17 12.75 102.91 118.77 15.28 1.98
Northeast Bancorp 11.00 14.10 13.58 113.17 124.58 7.92 1.93
Northeast Indiana Bancorp, Inc. 18.25 12.85 12.85 113.57 113.57 14.81 1.86
Northeast Pennsylvania Financial
Corporation 10.63 NA NA 73.94 73.94 14.29 --
Northwest Equity Corporation 17.50 11.82 11.67 122.89 122.89 14.97 3.66
NorthWest Indiana Bancorp 42.50 16.67 16.67 193.89 193.89 18.15 3.48
NS&L Bancorp, Inc. 16.00 23.88 24.62 94.79 95.47 17.52 3.13
Nutmeg Federal Savings &
Loan Association 12.00 21.82 23.08 189.87 189.87 11.52 1.67
Ocean Financial Corp. 14.63 15.23 15.08 107.77 108.33 14.77 3.28
Ocwen Financial Corporation 14.44 31.39 11.28 205.38 224.54 25.03 --
Ohio State Financial Services, Inc. 13.50 NA NA 83.18 83.18 23.36 1.48
OHSL Financial Corp. 14.63 17.21 17.21 132.71 132.71 14.73 3.42
Oregon Trail Financial Corp. 12.13 NA NA 76.31 76.31 22.20 1.65
Ottawa Financial Corporation 23.75 18.70 18.70 179.52 219.10 14.76 1.68
Pamrapo Bancorp, Inc. 24.13 14.53 15.08 139.45 140.18 17.40 4.64
Park Bancorp, Inc. 14.00 18.42 17.95 84.59 84.59 17.20 --
Parkvale Financial Corporation 30.00 14.29 14.29 184.62 185.53 14.17 2.00
PBOC Holdings, Inc. 10.50 NA NA 124.56 124.56 7.17 --
PCB Holding Company 9.00 NA NA NA NA NA --
Peekskill Financial Corporation 14.75 22.35 22.01 98.86 98.86 21.32 2.44
PennFed Financial Services, Inc. 13.00 11.21 11.21 109.52 125.85 7.86 1.08
Pennwood Bancorp, Inc. 11.00 26.83 29.73 89.14 89.14 16.65 2.55
Peoples Bancorp 20.50 16.27 16.27 151.07 151.07 22.61 2.15
Peoples Bancorp, Inc. 8.31 NA NA 88.44 91.15 34.57 1.20
People's Bancshares, Inc. 16.75 10.21 10.21 171.09 178.57 6.47 3.34
Peoples Financial Corporation 10.63 16.60 28.72 97.57 97.57 16.91 5.65
Peoples Heritage Financial
Group, Inc. 16.75 15.51 12.88 202.78 244.17 15.02 2.63
Peoples Savings Bank of Troy 14.50 31.52 31.52 372.75 372.75 38.47 0.28
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Exhibit III
Market Valuation and Financial Data for All Public Thrifts
====================================================================================================================================
Tang. LTM LTM Total
Total Equity/ Core Core Market
Assets Assets ROAA ROAE Value
Company Ticker Exchange St. ($000) (%) (%) (%) ($M)
====================================================================================================================================
Peoples-Sidney Financial Corporation PSFC NASDAQ OH 105,903 18.53 1.18 5.440 33.03
Permanent Bancorp, Inc. PERM NASDAQ IN 506,725 7.11 0.60 6.120 54.18
Perpetual Federal Savings Bank PFOH OTC OH 239,820 15.87 1.67 10.480 57.02
Perry County Financial Corporation PCBC NASDAQ MO 89,761 18.47 0.97 5.110 17.80
PFF Bancorp, Inc. PFFB NASDAQ CA 3,007,845 7.97 0.58 6.210 221.95
Piedmont Bancorp, Inc. PDB AMSE NC 130,541 16.55 1.27 7.730 26.31
Pittsburgh Home Financial Corp. PHFC NASDAQ PA 372,533 6.87 0.62 7.190 25.66
Pocahontas Bancorp, Inc. PFSL NASDAQ AR 404,606 14.05 0.70 7.380 45.13
Potters Financial Corporation PTRS NASDAQ OH 128,149 8.53 0.70 7.860 13.32
Prestige Bancorp, Inc. PRBC NASDAQ PA 164,656 9.67 0.45 4.290 13.81
Progress Financial Corporation PFNC NASDAQ PA 602,326 6.22 0.74 13.010 68.77
Progressive Bancorp, Inc. PEKS Pinks IL 86,542 7.50 0.81 9.610 8.36
Provident Financial Holdings, Inc. PROV NASDAQ CA 815,970 10.62 0.71 5.980 68.22
PS Financial, Inc. PSFI NASDAQ IL 85,000 26.78 1.72 5.520 21.67
PSB Bancorp Inc. PSBI NASDAQ PA 148,841 10.35 0.55 4.820 22.10
PVF Capital Corp. PVFC NASDAQ OH 418,928 7.20 1.34 18.690 39.90
QCF Bancorp, Inc. QCFB NASDAQ MN 154,089 17.70 1.66 9.550 38.22
Quaker City Bancorp, Inc. QCBC NASDAQ CA 887,480 8.71 0.78 8.960 85.95
Queens County Bancorp, Inc. QCSB NASDAQ NY 1,715,164 9.89 1.51 14.340 587.02
Quitman Bancorp, Inc. QTMB OTC GA 44,430 21.08 NA NA 6.28
Raritan Bancorp, Inc. RARB NASDAQ NJ 434,606 7.25 0.98 12.820 60.51
Redwood Financial, Incorporated REDW OTC MN 69,688 16.97 0.65 3.490 11.07
Reliance Bancorp, Inc. RELY NASDAQ NY 2,485,729 5.60 0.82 9.660 248.69
Richmond County Financial Corp. RCBK NASDAQ NY 1,595,844 20.53 1.38 9.150 358.38
River Valley Bancorp RIVR NASDAQ IN 135,683 13.48 0.94 7.140 17.85
Riverview Bancorp, Inc. RVSB NASDAQ WA 268,608 22.51 1.66 8.260 74.23
Rocky Ford Financial, Inc. RFFC Pinks CO 22,879 29.15 0.96 3.380 5.92
Roslyn Bancorp, Inc. RSLN NASDAQ NY 3,853,282 15.37 1.26 7.280 688.27
Security Bancorp, Inc. SCYT OTC TN 54,192 13.08 1.13 8.920 7.42
SFB Bancorp, Inc. SFBK OTC TN 53,238 23.10 1.03 4.490 12.42
SFSB Holding Company SFSH OTC PA 47,310 20.79 NA NA 7.26
SGV Bancorp, Inc. SGVB NASDAQ CA 408,346 7.81 0.36 4.690 27.59
SHS Bancorp, Inc. SHSB OTC PA 87,143 14.20 0.69 5.440 8.20
Sistersville Bancorp, Inc. SVBC OTC WV 31,375 33.73 1.24 3.740 8.17
Skaneateles Bancorp Inc. SKAN NASDAQ NY 266,730 6.73 0.62 8.920 21.13
Sobieski Bancorp, Inc. SOBI NASDAQ IN 89,848 14.10 0.57 3.890 11.73
South Carolina Community Bancshares, Inc. SCCB NASDAQ SC 46,305 20.38 1.01 4.190 11.88
South Street Financial Corp. SSFC NASDAQ NC 203,673 16.93 0.53 2.650 40.04
SouthBanc Shares, Inc. SBAN NASDAQ SC 367,666 20.75 0.92 7.800 69.98
Southern Banc Company, Inc. (The) SRN AMSE AL 105,719 17.29 0.49 2.840 17.22
Southern Community Bancshares, Inc. SCBS NASDAQ AL 67,920 17.34 1.22 6.490 16.78
====================================================================================================================================
Stock Price/ Price/ Price/ Price/ Price/
Price LTM Core Book Tang. Total Div.
09/04/98 EPS EPS Value Book Assets Yield
Company ($) (x) (x) (%) (%) (%) (%)
====================================================================================================================================
Peoples-Sidney Financial Corporation 18.50 25.00 25.00 151.76 151.76 31.19 1.51
Permanent Bancorp, Inc. 12.75 20.90 21.61 121.20 148.60 10.69 1.88
Perpetual Federal Savings Bank 25.00 15.15 15.15 149.79 149.79 23.78 2.16
Perry County Financial Corporation 21.50 20.09 20.09 107.39 107.39 19.83 2.33
PFF Bancorp, Inc. 14.38 14.23 14.67 96.35 97.39 7.75 -
Piedmont Bancorp, Inc. 9.56 15.68 15.68 121.82 121.82 20.15 5.02
Pittsburgh Home Financial Corp. 13.50 11.64 12.98 102.90 104.01 7.14 1.78
Pocahontas Bancorp, Inc. 6.75 NA NA 77.23 79.79 11.15 3.56
Potters Financial Corporation 14.00 14.43 15.73 121.85 121.85 10.39 1.71
Prestige Bancorp, Inc. 13.13 17.98 18.75 86.69 86.69 8.39 1.33
Progress Financial Corporation 13.75 16.57 18.84 172.96 193.94 11.98 1.11
Progressive Bancorp, Inc. 56.00 13.49 13.90 128.91 128.91 9.67 1.79
Provident Financial Holdings, Inc. 14.75 13.29 13.29 82.63 82.63 8.77 -
PS Financial, Inc. 11.13 24.18 16.36 98.63 98.63 26.42 4.31
PSB Bancorp Inc. 7.13 NA NA NA NA NA -
PVF Capital Corp. 10.00 8.33 8.00 132.28 132.28 9.52 -
QCF Bancorp, Inc. 28.00 12.79 12.96 140.14 140.14 24.80 -
Quaker City Bancorp, Inc. 14.75 12.94 12.94 111.24 111.24 9.68 -
Queens County Bancorp, Inc. 39.75 23.11 23.11 304.13 304.13 34.63 2.52
Quitman Bancorp, Inc. 9.50 NA NA 67.09 67.09 14.14 -
Raritan Bancorp, Inc. 25.50 16.24 16.24 190.01 192.31 13.92 2.35
Redwood Financial, Incorporated 12.75 26.02 27.72 93.61 93.61 15.88 -
Reliance Bancorp, Inc. 26.00 13.07 13.76 127.64 182.97 10.00 2.77
Richmond County Financial Corp. 13.56 NA NA 109.03 109.38 22.46 1.77
River Valley Bancorp 15.00 13.04 13.04 96.59 97.78 13.16 1.47
Riverview Bancorp, Inc. 12.00 NA NA 113.10 116.73 27.64 2.00
Rocky Ford Financial, Inc. 14.00 25.93 25.93 88.83 88.83 25.90 2.14
Roslyn Bancorp, Inc. 16.63 14.09 14.58 115.77 116.26 17.86 2.41
Security Bancorp, Inc. 17.00 12.23 12.23 104.68 104.68 13.69 1.47
SFB Bancorp, Inc. 16.50 21.71 21.71 102.93 102.93 23.77 1.21
SFSB Holding Company 10.00 NA NA 73.80 73.80 15.35 -
SGV Bancorp, Inc. 11.75 19.58 19.92 85.58 86.59 6.76 -
SHS Bancorp, Inc. 10.00 NA NA 66.27 66.27 9.41 2.60
Sistersville Bancorp, Inc. 13.00 19.70 19.70 77.20 77.20 26.04 2.46
Skaneateles Bancorp Inc. 14.63 13.80 13.80 115.16 117.94 7.92 1.91
Sobieski Bancorp, Inc. 15.00 23.08 23.44 84.08 84.08 12.76 2.13
South Carolina Community Bancshares, Inc. 20.50 29.29 27.70 125.92 125.92 25.66 3.12
South Street Financial Corp. 8.56 NA NA 100.74 100.74 19.66 4.67
SouthBanc Shares, Inc. 16.25 NA NA 91.70 91.70 19.03 2.95
Southern Banc Company, Inc. (The) 14.00 32.56 32.56 93.65 94.34 16.29 2.50
Southern Community Bancshares, Inc. 14.75 16.39 16.21 142.37 142.37 24.70 2.03
FELDMAN FINANCIAL ADVISORS, INC.
- -------------------------------
Exhibit III
MARKET VALUATION AND FINANCIAL DATA FOR ALL PUBLIC THRIFTS
======================================================================================================================
Tang. LTM LTM Total
Total Equity/ Core Core Market
Assets Assets ROAA ROAE Value
Company Ticker Exchange St. ($000) (%) (%) (%) ($M)
======================================================================================================================
Southern Missouri Bancorp, Inc. SMBC NASDAQ MO 155,924 15.46 0.69 4.230 23.75
SouthFirst Bancshares, Inc. SZB AMSE AL 162,975 9.72 0.52 4.730 16.08
Sovereign Bancorp, Inc. SVRN NASDAQ PA 18,847,318 4.88 0.78 14.050 2,082.92
St. Francis Capital Corporation STFR NASDAQ WI 1,754,803 6.73 0.83 10.520 198.68
St. Landry Financial Corporation SLAN OTC LA 62,902 11.01 0.41 3.650 6.92
St. Paul Bancorp, Inc. SPBC NASDAQ IL 4,564,869 9.56 1.08 11.810 806.29
StateFed Financial Corporation SFFC NASDAQ IA 89,802 17.91 1.16 6.490 15.66
Staten Island Bancorp, Inc. SIB NYSE NY 3,018,685 23.09 1.63 9.180 758.78
Statewide Financial Corp. SFIN NASDAQ NJ 656,635 9.71 0.75 7.850 73.03
Sterling Financial Corporation STSA NASDAQ WA 2,076,759 2.07 0.44 8.040 120.74
Stone Street Bancorp, Inc. SSM AMSE NC 112,253 27.33 1.40 4.840 28.40
Sturgis Bank & Trust Company, FSB STUR OTC MI 208,005 6.95 0.89 10.890 31.99
SWVA Bancshares, Incorporated SWVB OTC VA 81,464 10.30 0.86 7.590 8.73
Teche Holding Co. TSH AMSE LA 412,426 13.84 0.93 6.840 49.86
Telebanc Financial Corporation TBFC NASDAQ VA 1,209,466 3.59 0.12 2.660 171.55
Texarkana First Financial Corporation FTF AMSE AR 189,557 14.88 1.74 11.410 39.97
TF Financial Corporation THRD NASDAQ PA 689,284 6.43 0.61 6.910 51.45
Thistle Group Holdings, Co. THTL NASDAQ PA 343,956 8.58 NA NA 76.50
Three Rivers Financial Corp. THR AMSE MI 98,063 13.49 0.88 6.450 12.73
Timberland Bancorp, Inc. TSBK NASDAQ WA 263,112 32.36 1.84 8.400 81.83
Towne Financial Corporation TOFI OTC OH 116,407 6.99 0.80 10.960 6.31
Tri-County Bancorp, Inc. TRIC NASDAQ WY 86,549 16.44 1.06 6.800 13.43
Twin City Bancorp, Inc. TWIN NASDAQ TN 110,610 12.67 0.98 7.590 16.14
Union Community Bancorp UCBC NASDAQ IN 108,088 40.28 NA NA 33.46
Union Financial Bancshares, Inc. UFBS NASDAQ SC 183,066 NA 0.87 10.970 21.05
United Community Financial Corp. UCFC NASDAQ OH 1,692,707 8.71 NA NA 472.70
United Financial Corporation UBMT NASDAQ MT 205,345 14.32 NA NA 39.91
United PanAm Financial Corp. UPFC NASDAQ CA 411,798 19.85 NA NA 138.20
United Tennessee Bankshares, Inc. UTBI NASDAQ TN 74,442 27.03 NA NA 17.00
USABancshares, Inc. USAB NASDAQ PA 134,688 9.68 0.73 7.790 17.02
Vermilion Bancorp, Inc. VBAS OTC IL 43,197 14.29 0.71 4.610 4.16
Warren Bancorp, Inc. WRNB NASDAQ MA 378,137 10.49 1.58 14.680 80.09
Warwick Community Bancorp, Inc. WSBI NASDAQ NY 410,394 20.99 0.92 5.630 76.80
Washington Bancorp WBIO Pinks IA 93,248 10.43 1.10 7.040 11.28
Washington Federal, Inc. WFSL NASDAQ WA 5,558,970 13.04 1.92 14.69 1,167.20
Washington Mutual Inc. WAMU NASDAQ WA 103,396,952 5.15 0.97 17.640 12,052.68
Washington Savings Bank, FSB WSB AMSE MD 273,549 8.42 0.56 6.580 21.55
Webster Financial Corporation WBST NASDAQ CT 9,189,143 5.11 0.76 13.980 876.55
Wells Financial Corp. WEFC NASDAQ MN 188,677 15.37 1.19 8.190 30.75
West Town Bancorp, Incorporated WTWN OTC IL 29,699 13.70 0.51 3.660 2.78
Westcorp WES NYSE CA 3,663,771 9.05 0.21 2.340 237.58
===================================================================================================================
Stock Price/ Price/ Price/ Price/ Price/
Price LTM Core Book Tang. Total Div.
09/04/98 EPS EPS Value Book Assets Yield
Company ($) (x) (x) (%) (%) (%) (%)
===================================================================================================================
Southern Missouri Bancorp, Inc. 16.00 23.88 22.86 98.52 98.52 15.23 3.13
SouthFirst Bancshares, Inc. 16.63 22.77 19.79 99.25 101.81 9.87 3.61
Sovereign Bancorp, Inc. 13.13 21.88 14.42 186.97 212.04 10.61 0.61
St. Francis Capital Corporation 38.88 14.51 14.73 150.80 168.58 11.32 1.44
St. Landry Financial Corporation 17.25 25.37 25.37 99.88 99.88 11.00 0.58
St. Paul Bancorp, Inc. 19.88 14.00 14.00 155.88 156.50 14.96 3.02
StateFed Financial Corporation 10.00 15.15 15.15 97.37 97.37 17.44 2.00
Staten Island Bancorp, Inc. 16.81 NA NA 106.75 109.46 25.14 1.90
Statewide Financial Corp. 16.75 13.29 13.96 115.44 115.60 11.22 3.10
Sterling Financial Corporation 15.88 18.04 14.98 114.21 290.22 5.81 -
Stone Street Bancorp, Inc. 15.75 19.69 19.69 94.65 94.65 25.87 2.92
Sturgis Bank & Trust Company, FSB 13.00 17.81 17.81 184.66 224.91 15.38 1.23
SWVA Bancshares, Incorporated 17.25 13.27 13.07 104.17 104.17 10.72 1.74
Teche Holding Co. 14.50 12.39 12.61 87.35 87.35 12.09 3.45
Telebanc Financial Corporation 13.88 NA NA 206.78 222.00 5.16 -
Texarkana First Financial Corporation 23.00 12.50 12.50 141.71 141.71 21.08 2.43
TF Financial Corporation 17.75 14.20 16.14 99.50 117.24 8.22 2.70
Thistle Group Holdings, Co. 8.50 NA NA NA NA NA -
Three Rivers Financial Corp. 16.25 15.19 14.64 101.06 101.37 13.66 2.71
Timberland Bancorp, Inc. 12.38 NA NA 96.08 96.08 31.10 1.94
Towne Financial Corporation 30.25 7.60 7.76 74.56 77.70 5.42 -
Tri-County Bancorp, Inc. 11.50 15.97 15.13 94.34 94.34 15.51 3.83
Twin City Bancorp, Inc. 13.00 14.61 15.29 115.15 115.15 14.59 3.08
Union Community Bancorp 11.00 NA NA 76.87 76.87 30.96 3.09
Union Financial Bancshares, Inc. 16.50 14.10 14.22 142.73 NA 11.50 2.25
United Community Financial Corp. 14.13 NA NA NA NA NA -
United Financial Corporation 23.50 NA NA 131.80 136.39 19.44 4.26
United PanAm Financial Corp. 8.00 NA NA 168.42 169.13 33.56 -
United Tennessee Bankshares, Inc. 11.69 NA NA 84.51 84.51 22.84 10.27
USABancshares, Inc. 8.50 85.00 38.64 136.88 137.76 12.64 -
Vermilion Bancorp, Inc. 11.25 15.20 15.20 67.45 67.45 9.64 -
Warren Bancorp, Inc. 10.13 12.82 13.87 201.69 201.69 21.17 3.56
Warwick Community Bancorp, Inc. 11.63 NA NA 89.15 89.15 18.71 1.38
Washington Bancorp 17.63 14.45 14.45 103.74 118.85 12.22 2.72
Washington Federal, Inc. 22.25 10.60 10.91 151.05 162.65 20.99 4.13
Washington Mutual Inc. 31.13 18.98 12.40 209.03 222.16 11.65 2.66
Washington Savings Bank, FSB 4.88 11.34 14.77 93.57 93.57 7.88 2.05
Webster Financial Corporation 22.88 13.70 12.17 159.85 188.58 9.54 1.92
Wells Financial Corp. 16.75 13.40 13.40 108.55 108.55 16.68 3.58
West Town Bancorp, Incorporated 12.50 18.12 18.12 68.38 68.38 9.37 -
Westcorp 9.00 32.14 31.03 71.43 71.60 6.48 2.22
FELDMAN FINANCIAL ADVISORS. INC.
- -------------------------------
Exhibit III
MARKET VALUATION AND FINANCIAL DATA FOR ALL PUBLIC THRIFTS
===================================================================================================================================
Tang. LTM LTM Total
Total Equity/ Core Core Market
Assets Assets ROAA ROAE Value
Company Ticker Exchange St. ($000) (%) (%) (%) ($M)
===================================================================================================================================
WesterFed Financial Corporation WSTR NASDAQ MT 1,022,136 8.93 0.78 7.310 103.33
Western Ohio Financial Corporation WOFC NASDAQ OH 357,295 13.71 0.11 0.760 47.67
Westwood Homestead Financial Corporation WEHO NASDAQ OH 126,339 20.59 0.97 3.840 27.19
WHG Bancshares Corporation WHGB NASDAQ MD 131,967 15.29 0.59 3.210 15.28
Winton Financial Corp. WFI AMSE OH 358,573 7.15 1.17 16.060 46.16
Wood Bancorp, Inc. FFWD NASDAQ OH 166,150 13.57 1.43 11.080 40.03
WSB Holding Company WSBH OTC PA 36,980 12.90 NA NA 4.79
WSFSH Financial Corporation WSFS NASDAQ DE 1,551,631 6.12 1.11 18.960 200.40
WVS Financial Corporation WVFC NASDAQ PA 297,054 11.10 1.29 11.270 55.39
Wyman Park Bancorporation, Inc. WPBC OTC MD 69,817 20.04 NA NA 11.00
Yonkers Financial Corporation YFCB NASDAQ NY 401,565 10.30 0.86 6.570 42.26
York Financial Corp. YFED NASDAQ PA 1,229,268 8.89 0.75 8.490 163.67
AVERAGE 1,276,994 12.89 0.92 8.26 165.86
MEDIAN 260,250 10.93 0.89 7.52 36.45
Note: average and median price/earnings ratios exclude values grater than 30.
====================================================================================================================================
Stock Price/ Price/ Price/ Price/ Price/
Price LTM Core Book Tang. Total Div.
09/04/98 EPS EPS Value Book Assets Yield
Company ($) (x) (x) (%) (%) (%) (%)
====================================================================================================================================
WesterFed Financial Corporation 18.50 14.34 13.21 94.20 115.55 10.11 2.70
Western Ohio Financial Corporation 20.75 159.62 98.81 91.90 98.25 13.34 4.82
Westwood Homestead Financial Corporation 10.63 NA NA 104.58 104.58 21.52 3.76
WHG Bancshares Corporation 11.00 22.92 22.45 75.76 75.76 11.58 2.91
Winton Financial Corp. 11.50 12.23 12.23 177.20 179.97 12.87 2.17
Wood Bancorp, Inc. 15.00 17.44 17.44 177.51 177.51 24.09 2.40
WSB Holding Company 14.50 NM NA 100.49 100.49 12.96 -
WSFS Financial Corporation 16.00 11.85 11.94 209.97 211.08 12.92 0.75
WVS Financial Corporation 15.31 15.63 14.45 167.91 167.91 18.65 3.92
Wyman Park Bancorporation, Inc. 10.87 NM NA 78.60 78.60 15.75 -
Yonkers Financial Corporation 15.50 14.35 14.90 103.96 103.96 10.70 1.81
York Financial Corp. 18.25 17.22 19.41 149.84 149.84 13.31 2.85
AVERAGE 16.24 17.87 124.26 129.07 15.37 1.90
MEDIAN 15.19 15.66 111.65 115.06 14.22 1.93
Note: average and median price/earnings ratios exclude values greater than 30.
FELDMAN FINANCIAL ADVISORS, INC.
- -------------------------------
Exhibit III
MARKET VALUATION AND FINANCIAL DATA FOR ALL PUBLIC THRIFTS
=====================================================================================================================
Tang. LTM LTM Total Stock Price/
Total Equity/ Core Core Market Price LTM
Assets Assets ROAA ROAE Value 09/04/98 EPS
Company Ticker Exchange St. ($000) (%) (%) (%) ($M) ($) (x)
=====================================================================================================================
THRIFTS UNDER ACQUISITION
- -------------------------
1ST Bancorp FBCV NASDAQ IN 260,149 9.01 0.71 7.770 46.12 42.25 24.42
AFSALA Bancorp, Inc. AFED NASDAQ NY 167,301 11.40 0.48 4.080 17.81 13.50 17.31
Ahmanson & Company (H.F.) AHM NYSE CA 52,826,336 5.18 1.02 16.470 6,144.75 54.50 14.27
ALBANK Financial Corporation ALBK NASDAQ NY 4,130,868 7.41 1.00 11.070 796.91 60.00 18.52
Bayonne Bancshares, Inc. FSNJ NASDAQ NJ 700,293 13.70 0.68 4.610 127.32 14.00 NA
Big Sky Bancorp, Incorporated FFLN OTC MT 64,023 12.59 0.82 6.490 8.64 28.00 18.42
Fed One Bancorp, Inc. FOBC NASDAQ WV 373,837 10.82 0.73 6.530 94.86 39.50 31.35
Financial Bancorp, Inc. FIBC NASDAQ NY 340,999 8.39 0.96 10.640 56.32 33.00 19.19
First FS&LA of San Bernardino FSSB OTC CA 106,083 4.36 0.35 8.070 4.96 15.12 65.74
First Palm Beach Bancorp, Inc. FFPB NASDAQ FL 1,764,026 6.72 0.12 1.790 164.67 32.00 20.51
Golden State Bancorp Inc. GSB NYSE CA 18,116,737 5.90 0.94 13.010 1,085.46 19.56 10.99
HFNC Financial Corp. HFNC NASDAQ NC 1,007,913 16.96 1.16 6.760 180.52 10.50 12.80
Home Bancorp of Elgin, Inc. HBEI NASDAQ IL 367,656 26.11 0.75 2.890 89.13 13.00 33.33
Life Financial Corp. LFCO NASDAQ CA 472,437 12.64 1.03 7.780 34.42 5.25 2.61
Little Falls Bancorp, Inc. LFBI NASDAQ NJ 351,347 9.82 0.56 5.390 37.16 15.00 18.75
Long Island Bancorp, Inc. LISB NASDAQ NY 6,483,887 8.84 0.98 11.100 1,085.20 44.88 18.70
Maryland Federal Bancorp, Inc. MFSL NASDAQ MD 1,188,121 8.97 0.82 9.190 236.84 36.00 27.27
Mid-Iowa Financial Corp. MIFC NASDAQ IA 135,040 9.92 0.99 10.600 22.98 13.25 17.21
Mitchell Bancorp, Inc. MBSP NASDAQ NC 37,306 39.22 0.68 1.730 14.89 16.00 32.00
NSS Bancorp, Inc. NSSY NASDAQ CT 651,825 8.27 0.64 7.550 98.99 41.63 17.79
Peoples Bancorp, Inc. TSBS NASDAQ NJ 873,466 38.36 1.57 6.120 337.14 9.28 NA
Pulse Bancorp, Inc. PULS NASDAQ NJ 544,102 8.44 1.04 12.320 76.45 24.50 14.24
Reliance Bancshares, Inc. RELI NASDAQ WI 44,174 49.96 1.33 2.670 21.93 9.25 44.05
Sandwich Bancorp, Inc. SWCB NASDAQ MA 531,013 8.18 0.88 10.980 120.57 59.00 23.89
Scotland Bancorp, Inc. SSB AMSE NC 61,082 24.93 0.91 3.660 21.29 11.13 22.25
Security First Corp. SFSL NASDAQ OH 696,462 9.78 1.50 15.650 158.24 20.06 17.30
SFS Bancorp, Inc. SFED NASDAQ NY 178,093 12.31 0.68 5.580 32.63 27.00 27.00
SIS Bancorp, Inc. SISB NASDAQ MA 1,841,662 7.14 0.94 13.190 270.16 38.50 20.92
TR Financial Corp. ROSE NASDAQ NY 4,115,800 6.23 0.84 13.710 511.22 29.00 13.06
United Federal Savings Bank UFRM NASDAQ NC 301,924 7.75 0.79 10.460 52.53 16.00 28.07
Wayne Bancorp, Inc. WYNE NASDAQ NJ 275,335 12.77 0.72 5.640 60.39 30.00 30.00
Westco Bancorp, Inc. WCBI NASDAQ IL 320,295 15.66 1.40 8.980 71.33 28.69 16.30
Average 3,104,050 13.68 0.88 8.203 377.56 - 18.94
Median 423,137 9.80 0.86 7.775 82.79 - 18.75
===========================================================================================
Price/ Price/ Price/ Price/
Core Book Total Total Div.
EPS Value Assets Assets Yield
Company (x) (%) (%) (%) (%)
===========================================================================================
THRIFTS UNDER ACQUISITION
- -------------------------
1ST Bancorp 24.71 193.36 197.15 17.73 0.63
AFSALA Bancorp, Inc. 15.88 83.18 83.18 10.64 2.07
Ahmanson & Company (H.F.) 13.76 190.23 249.54 11.63 1.61
ALBANK Financial Corporation 18.58 209.06 264.08 19.20 1.40
Bayonne Bancshares, Inc. NA 132.70 132.70 18.18 1.79
Big Sky Bancorp, Incorporated 16.97 107.24 107.24 13.50 -
Fed One Bancorp, Inc. 32.11 219.69 228.32 25.37 1.57
Financial Bancorp, Inc. 19.76 196.08 196.90 16.52 1.52
First FS&LA of San Bernardino 21.91 106.40 107.31 4.68 -
First Palm Beach Bancorp, Inc. 24.43 136.05 138.89 9.32 2.19
Golden State Bancorp Inc. 9.83 96.66 115.14 5.99 -
HFNC Financial Corp. 18.75 105.63 105.63 17.91 3.05
Home Bancorp of Elgin, Inc. 33.33 92.86 92.86 24.24 3.08
Life Financial Corp. 2.51 57.63 57.63 7.29 -
Little Falls Bancorp, Inc. 18.75 100.60 108.46 10.58 1.60
Long Island Bancorp, Inc. 20.97 187.92 189.51 16.74 1.78
Maryland Federal Bancorp, Inc. 26.47 220.32 222.22 19.91 1.25
Mid-Iowa Financial Corp. 17.43 171.41 171.63 17.02 0.60
Mitchell Bancorp, Inc. 32.00 101.78 101.78 39.93 2.50
NSS Bancorp, Inc. 20.71 179.50 184.02 15.19 1.25
Peoples Bancorp, Inc. NA 98.73 101.77 38.60 1.08
Pulse Bancorp, Inc. 14.24 166.55 166.55 14.05 3.27
Reliance Bancshares, Inc. 46.25 99.36 99.36 49.65 -
Sandwich Bancorp, Inc. 24.08 270.52 278.30 22.70 2.37
Scotland Bancorp, Inc. 22.25 139.76 139.76 34.85 1.80
Security First Corp. 17.30 228.77 231.67 22.65 1.79
SFS Bancorp, Inc. 27.84 148.92 148.92 18.32 1.19
SIS Bancorp, Inc. 16.18 207.32 207.32 14.55 1.66
TR Financial Corp. 15.26 188.07 188.07 12.35 2.76
United Federal Savings Bank 27.59 224.40 224.40 17.40 1.50
Wayne Bancorp, Inc. 30.93 171.72 171.72 21.93 0.67
Westco Bancorp, Inc. 17.28 142.16 142.16 22.27 2.37
Average 21.60 155.46 161.07 19.09 1.51
Median 20.24 157.74 157.74 17.57 1.59
Note: average and median price/earnings ratios exclude values greater than 30.
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Exhibit III
Market Valuation and Financial Data for All Public Thrifts
=====================================================================================================================
Tang. LTM LTM Total
Total Equity/ Core Core Market
Assets Assets ROAA ROAE Value
Company Ticker Exchange St. ($000) (%) (%) (%) ($M)
=====================================================================================================================
MUTUAL HOLDING COMPANIES
- ------------------------
AF Bankshares, Inc. (MHC) ASFE Pinks NC 94,108 11.65 0.52 4.120 NA
Alliance Bank (MHC) ALLB NASDAQ PA 277,490 10.68 0.76 6.880 49.92
BCSB Bankcorp, Inc. (MHC) BCSB NASDAQ MD 320,627 8.00 0.68 7.250 63.84
Brookline Bancorp, Inc. (MHC) BRKL NASDAQ MA 835,329 32.99 1.99 8.060 316.41
Community Savings Bankshares, Inc. (MHC) CMSV NASDAQ FL 765,488 10.85 0.65 5.830 112.20
Fidelity Bankshares Inc. (MHC) FFFL NASDAQ FL 1,468,351 5.99 0.62 8.550 163.26
Finger Lakes Financial Corp. (MHC) SBFL NASDAQ NY 258,394 8.46 NA NA 51.77
First Carnegie Deposit (MHC) SKBO NASDAQ PA 145,590 16.80 0.45 2.690 25.30
First Federal Savings & Loan Assn.
of Alpena (MHC) FFAL Pinks MI 227,554 6.14 0.50 6.730 24.61
First Federal Savings Bank of
Siouxland (MHC) FFSX NASDAQ IA 551,593 6.23 0.72 8.540 79.52
Gaston Federal Bancorp, Inc. (MHC) GBNK NASDAQ NC 202,615 20.29 NA NA 50.59
Harris Financial, Inc. (MHC) HARS NASDAQ PA 2,325,602 7.40 0.65 8.100 471.26
Jacksonville Savings Bank (MHC) JXSB NASDAQ IL 169,745 10.54 0.60 5.710 29.10
Jefferson FS&LA of Morristown (MHC) JFSB Pinks TN 184,404 12.46 1.28 10.400 28.85
Leeds Federal Bankshares, Inc. (MHC) LFED NASDAQ MD 298,997 16.49 1.19 7.220 81.62
Liberty Bancorp, Inc. (MHC) LIBB NASDAQ NJ 255,357 13.13 0.62 7.960 39.75
Liberty Savings Bank, FSB (MHC) LBTM OTC MO 163,519 10.76 0.72 6.930 29.29
Marquette Savings Bank (MHC) MRQT OTC WI 78,388 25.50 0.84 4.330 18.98
Mid-Southern Savings Bank, FSB (MHC) MSVB OTC IN 60,655 18.63 NA NA 15.81
Niagara Bancorp, Inc. (MHC) NBCP NASDAQ NY 1,345,187 19.03 0.96 7.510 334.76
Northwest Bancorp, Inc. (MHC) NWSB NASDAQ PA 2,547,412 7.75 0.90 9.820 509.40
Pathfinder Bancorp, Inc. (MHC) PBHC NASDAQ NY 198,091 10.33 0.58 4.960 37.52
People's Bank (MHC) PBCT NASDAQ CT 9,105,200 8.22 0.80 8.870 1,487.30
Peoples Home Savings Bank (MHC) PHSB NASDAQ PA 226,742 12.67 0.75 5.810 40.71
Pulaski Bank, A Federal Savings
Bank (MHC) PULB NASDAQ MO 186,917 13.37 1.09 8.210 50.28
Pulaski Savings Bank (MHC) PLSK NASDAQ NJ 187,776 11.83 0.58 4.890 27.41
Roebling Bank (MHC) ROEB OTC NJ 42,763 10.70 NA NA 8.94
Wake Forest FS&LA (MHC) WAKE OTC NC 73,416 17.28 1.42 7.890 19.91
Wayne Savings Bancshares, Inc. (MHC) WAYN NASDAQ OH 259,402 9.53 0.72 7.530 52.84
Webster City Federal Savings Bank (MHC) WCFB NASDAQ IA 97,096 23.41 1.40 5.960 32.24
AVERAGE 765,127 13.24 0.85 6.952 146.67
MEDIAN 227,148 11.25 0.72 7.235 49.92
======================================================================================================================
Stock Price/ Price/ Price/ Price/ Price/
Price LTM Core Book Tang. Total Div.
09/04/98 EPS EPS Value Book Assets Yield
Company ($) (x) (x) (%) (%) (%) (%)
======================================================================================================================
MUTUAL HOLDING COMPANIES
- ------------------------
AF Bankshares, Inc. (MHC) 19.00 NA NA NA NA NA NA
Alliance Bank (MHC) 15.25 24.60 24.60 168.32 168.32 17.99 2.36
BCSB Bankcorp, Inc. (MHC) 10.44 NA NA NA NA NA --
Brookline Bancorp, Inc. (MHC) 10.88 NA NA 114.84 114.84 37.88 1.84
Community Savings Bankshares, Inc. (MHC) 22.00 21.78 23.66 132.05 132.05 14.66 4.09
Fidelity Bankshares Inc. (MHC) 24.00 20.87 21.82 180.72 186.05 11.12 4.17
Finger Lakes Financial Corp. (MHC) 14.50 NA NA 236.93 236.93 20.03 --
First Carnegie Deposit (MHC) 11.00 29.73 36.67 103.48 103.48 17.38 2.73
First Federal Savings & Loan Assn.
of Alpena (MHC) 15.00 30.61 30.61 149.70 178.15 10.82 --
First Federal Savings Bank of
Siouxland (MHC) 28.00 23.53 23.14 189.19 234.70 14.42 1.71
Gaston Federal Bancorp, Inc. (MHC) 11.25 NA NA 123.09 123.09 24.97 1.78
Harris Financial, Inc. (MHC) 13.88 25.69 32.27 249.55 275.84 20.26 1.59
Jacksonville Savings Bank (MHC) 15.25 29.33 29.33 162.58 162.58 17.14 1.97
Jefferson FS&LA of Morristown (MHC) 15.50 12.30 12.70 125.61 125.61 15.65 3.23
Leeds Federal Bankshares, Inc. (MHC) 15.75 24.61 23.86 165.44 165.44 27.30 3.56
Liberty Bancorp, Inc. (MHC) 10.19 NA NA 118.60 118.60 15.57 --
Liberty Savings Bank, FSB (MHC) 22.00 23.91 23.91 165.54 165.54 17.88 3.64
Marquette Savings Bank (MHC) 8.00 NA NA 91.53 91.53 24.21 --
Mid-Southern Savings Bank, FSB (MHC) 11.00 NA NA 139.95 139.95 26.07 2.47
Niagara Bancorp, Inc. (MHC) 11.25 NA NA 130.81 130.81 24.89 --
Northwest Bancorp, Inc. (MHC) 10.88 24.17 25.29 233.87 260.17 20.00 1.47
Pathfinder Bancorp, Inc. (MHC) 13.25 25.98 33.13 156.43 183.26 18.94 1.51
People's Bank (MHC) 23.19 14.05 21.88 173.43 201.28 16.33 3.62
Peoples Home Savings Bank (MHC) 14.75 23.41 25.00 141.83 141.83 17.95 1.90
Pulaski Bank, A Federal Savings
Bank (MHC) 23.88 25.95 25.67 201.14 201.14 26.90 4.61
Pulaski Savings Bank (MHC) 13.00 26.53 25.00 123.46 123.46 14.59 2.31
Roebling Bank (MHC) 21.00 NA NA 188.68 188.85 20.90 --
Wake Forest FS&LA (MHC) 16.38 20.47 20.47 157.00 157.00 27.12 2.93
Wayne Savings Bancshares, Inc. (MHC) 21.25 29.51 29.51 213.78 213.78 20.37 2.65
Webster City Federal Savings Bank (MHC) 15.25 23.83 23.83 141.86 141.86 33.20 5.25
AVERAGE 23.73 25.62 159.98 166.65 20.52 2.12
MEDIAN 23,89 24.80 156.72 164.01 19.47 1.97
Note: average and median price/earnings ratios exclude values greater than 30.
FELDMAN FINANCIAL ADVISORS, INC.
- -------------------------------
Exhibit III
Market Valuation and Financial Data for All Public Thrifts
====================================================================================================================================
Tang. LTM LTM Total
Total Equity/ Core Core Market
Assets Assets ROAA ROAE Value
Company Ticker Exchange St. ($000) (%) (%) (%) ($M)
====================================================================================================================================
NEW YORK THRIFTS
- ----------------
Adirondack Financial Services Bancorp AFSB OTC NY 66,028 13.52 NA NA 7.60
Albion Banc Corp. ALBC NASDAQ NY 74,118 8.49 0.53 6.180 6.49
Ambanc Holding Co., Inc. AHCI NASDAQ NY 565,387 10.32 0.41 3.510 53.37
Astoria Financial Corporation ASFC NASDAQ NY 11,575,551 6.09 0.79 9.490 1,007.23
Carver Bancorp, Inc. CNY AMSE NY 427,371 8.14 0.22 2.650 21.99
Catskill Financial Corporation CATB NASDAQ NY 309,566 22.04 1.30 5.390 56.56
Dime Bancorp, Incorporated DME NYSE NY 20,913,891 5.29 0.86 14.770 2,582.88
Dime Community Bancshares, Inc. DCOM NASDAQ NY 1,623,926 10.15 0.86 6.790 219.18
Elmira Savings Bank, FSB ESBK NASDAQ NY 231,725 6.27 0.39 6.240 17.44
Flushing Financial Corporation FFIC NASDAQ NY 1,091,908 12.39 0.96 7.240 171.83
GreenPoint Financial Corporation GPT NYSE NY 12,853,902 5.87 1.14 11.840 2,412.94
GSB Financial Corporation GOSB NASDAQ NY 129,087 24.91 0.71 2.870 26.42
Haven Bancorp, Inc. HAVN NASDAQ NY 2,265,248 4.99 0.48 8.320 127.21
Hudson River Bancorp Inc. HRBT NASDAQ NY 994,055 6.95 NA NA 188.59
Independence Community Bank Corp. ICBC NASDAQ NY 4,786,156 19.16 NA NA 974.35
JSB Financial, Inc. JSB NYSE NY 1,563,460 24.31 2.52 10.730 461.28
Peekskill Financial Corporation PEEK NASDAQ NY 200,341 21.57 1.01 4.110 42.71
Queens County Bancorp, Inc. QCSB NASDAQ NY 1,715,164 9.89 1.51 14.340 587.02
Reliance Bancorp, Inc. RELY NASDAQ NY 2,485,729 5.60 0.82 9.660 248.69
Richmond County Financial Corp. RCBK NASDAQ NY 1,595,844 20.53 1.38 9.150 358.38
Roslyn Bancorp, Inc. RSLN NASDAQ NY 3,853,282 15.37 1.26 7.280 688.27
Skaneateles Bancorp Inc. SKAN NASDAQ NY 266,730 6.73 0.62 8.920 21.13
Staten Island Bancorp, Inc. SIB NYSE NY 3,018,685 23.09 1.63 9.180 758.78
Warwick Community Bancorp, Inc. WSBI NASDAQ NY 410,394 20.99 0.92 5.630 76.80
Yonkers Financial Corporation YFCB NASDAQ NY 401,565 10.30 0.86 6.570 42.26
ASB Financial Corp. ASBP NASDAQ OH 116,437 12.44 0.94 6.670 19.03
AVERAGE 2,828,290 12.90 0.96 7.719 429.94
MEDIAN 1,042,982 10.31 0.86 7.240 149.52
====================================================================================================================================
Stock Price/ Price/ Price/ Price/ Price/
Price LTM Core Book Tang. Total Div.
09/04/98 EPS EPS Value Book Assets Yield
Company ($) (x) (x) (%) (%) (%) (%)
====================================================================================================================================
NEW YORK THRIFTS
- ----------------
Adirondack Financial Services Bancorp 11.50 NA NA 85.19 85.19 11.52 -
Albion Banc Corp. 8.63 16.91 16.91 103.05 103.05 8.76 1.39
Ambanc Holding Co., Inc. 13.00 24.53 23.21 91.42 91.42 9.44 1.85
Astoria Financial Corporation 37.88 11.55 12.22 112.59 157.16 8.68 2.11
Carver Bancorp, Inc. 9.50 19.79 22.62 61.25 63.38 5.14 -
Catskill Financial Corporation 12.75 14.01 14.33 81.11 81.11 18.48 2.90
Dime Bancorp, Incorporated 22.75 14.68 14.13 194.11 236.00 12.35 0.88
Dime Community Bancshares, Inc. 18.00 16.51 17.14 117.65 135.03 13.50 2.22
Elmira Savings Bank, FSB 24.00 16.00 19.05 117.94 117.94 7.53 2.67
Flushing Financial Corporation 22.00 16.79 16.30 122.91 127.61 15.74 1.64
GreenPoint Financial Corporation 28.94 14.76 14.47 163.95 289.96 18.77 2.21
GSB Financial Corporation 11.75 NA NA 82.17 82.17 20.46 1.02
Haven Bancorp, Inc. 14.38 14.67 13.96 107.84 112.83 5.62 2.09
Hudson River Bancorp Inc. 10.56 NA NA NA NA NA -
Independence Community Bank Corp. 12.81 NA NA 101.45 107.49 20.36 -
JSB Financial, Inc. 46.81 10.31 12.22 121.12 121.12 29.44 3.42
Peekskill Financial Corporation 14.75 22.35 22.01 98.86 98.86 21.32 2.44
Queens County Bancorp, Inc. 39.75 23.11 23.11 304.13 304.13 34.63 2.52
Reliance Bancorp, Inc. 26.00 13.07 13.76 127.64 182.97 10.00 2.77
Richmond County Financial Corp. 13.56 NA NA 109.03 109.38 22.46 1.77
Roslyn Bancorp, Inc. 16.63 14.09 14.58 115.77 116.26 17.86 2.41
Skaneateles Bancorp Inc. 14.63 13.80 13.80 115.16 117.94 7.92 1.91
Staten Island Bancorp, Inc. 16.81 NA NA 106.75 109.46 25.14 1.90
Warwick Community Bancorp, Inc. 11.63 NA NA 89.15 89.15 18.71 1.38
Yonkers Financial Corporation 15.50 14.35 14.90 103.96 103.96 10.70 1.81
ASB Financial Corp. 11.50 16.91 16.91 131.28 131.28 16.34 3.48
AVERAGE 16.61 16.61 118.62 130.99 15.63 1.80
MEDIAN 14.90 14.90 109.03 112.83 15.74 1.91
Note: average and median price/earnings ratios exclude values greater than 30.
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Exhibit IV-1
PRO FORMA CONVERSION ASSUMPTIONS
1. The total amount of the net conversion proceeds was fully invested at the
beginning of the applicable period.
2. The net conversion proceeds are invested to yield a return of 5.37%, which
represents the one-year U.S. Treasury bill yield as of June 30, 1998. The
combined federal and state income tax rate was assumed to be 38.0%,
resulting in an after-tax yield of 3.33%.
3. It is assumed that 8.0% of the shares offered in the Conversion will be
purchased by the Association's Employee Stock Ownership Plan ("ESOP"). The
funds used to acquire such shares will be borrowed by the ESOP from the net
proceeds retained by the Holding Company. Pro forma adjustments have been
made to earnings and equity to reflect the impact of the ESOP. The annual
ESOP expense is estimated based on a 10-year debt amortization period. No
reinvestment is assumed on proceeds used to fund the ESOP.
4. It is assumed that 4.0% of the shares offered in the Conversion will be
purchased in the open market by the Association's Management Recognition
Plan and Trust ("MRP"). The MRP is subject to stockholder approval and is
expected to be adopted following the consummation of the Conversion. Pro
forma adjustments have been made to earnings and equity to reflect the
impact of the MRP. The annual MRP expense is estimated based on a 5-year
vesting period. No reinvestment is assumed on proceeds used to fund the
MRP.
5. Conversion expenses are estimated at $350,000 at the minimum, midpoint and
maximum valuation. Actual expenses may vary from this estimate and will
depend, among other factors, on the payment of marketing fees related to
the percentages and total number of shares sold in different phases of the
offering.
6. The number of shares outstanding for purposes of calculating earnings per
share is adjusted to reflect the shares assumed to held by the ESOP not
committed to be released within the first year following the Conversion.
7. No effect has been given to withdrawals from deposit accounts for the
purpose of purchasing common stock in the Conversion.
IV-1
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Exhibit IV-2
PRO FORMA VALUATION RANGE
PEOPLES BANKCORP
(Dollars in Thousands, Except Per Share Data)
Super
Minimum Midpoint Maximum Maximum
==========================================================================================================
Shares offered 127,500 150,000 172,500 198,375
Offering price example $10.00 $10.00 $10.00 $10.00
==========================================================================================================
Gross proceeds $1,275 $1,500 $1,725 $1,984
Less: estimated expenses (350) (350) (350) (350)
-------- -------- -------- --------
Net offering proceeds $925 $1,150 $1,375 $1,634
==========================================================================================================
NET INCOME:
Net Income LTM June 30, 1998 $83 $83 $83 $83
Pro forma income on net proceeds 26 32 39 46
Pro forma ESOP adjustment (6) (7) (9) (10)
Pro forma MRP adjustment (6) (7) (9) (10)
-------- -------- -------- --------
Pro forma core income $96 $100 $105 $110
-------- -------- -------- --------
Pro forma core income per share $0.81 $0.72 $0.65 $0.60
==========================================================================================================
NET INCOME:
Core Income LTM June 30, 1998 $82 $82 $82 $82
Pro forma income on net proceeds 26 32 39 46
Pro forma ESOP adjustment (6) (7) (9) (10)
Pro forma MRP adjustment (6) (7) (9) (10)
-------- -------- -------- --------
Pro forma core income $95 $99 $104 $109
-------- -------- -------- --------
Pro forma core income per share $0.80 $0.71 $0.65 $0.59
==========================================================================================================
TOTAL EQUITY AT JUNE 30, 1998 $1,648 $1,648 $1,648 $1,648
Net proceeds 925 1,150 1,375 1,634
Less: ESOP purchase (102) (120) (138) (159)
Less: MRP purchase (51) (60) (69) (79)
-------- -------- -------- --------
Pro forma total equity $2,420 $2,618 $2,816 $3,044
-------- -------- -------- --------
Pro forma book value $18.98 $17.45 $16.32 $15.34
==========================================================================================================
TANGIBLE EQUITY AT JUNE 30, 1998 $1,648 $1,648 $1,648 $1,648
Net proceeds 925 1,150 1,375 1,634
Less: ESOP purchase (102) (120) (138) (159)
Less: MRP purchase (51) (60) (69) (79)
-------- -------- -------- --------
Pro forma tangible equity $2,420 $2,618 $2,816 $3,044
-------- -------- -------- --------
Pro forma tangible book value $18.98 $17.45 $16.32 $15.34
==========================================================================================================
TOTAL ASSETS AT JUNE 30, 1998 $24,247 $24,247 $24,247 $24,247
Net proceeds 925 1,150 1,375 1,634
Less: ESOP purchase (102) (120) (138) (159)
Less: MRP purchase (51) (60) (69) (79)
-------- -------- -------- --------
Pro forma total assets $25,019 $25,217 $25,415 $25,643
==========================================================================================================
PRO FORMA VALUATION RATIOS:
Net Worth / Total Assets 9.67% 10.38% 11.08% 11.87%
PRICE / LTM EPS 12.33 13.86 15.28 16.77
PRICE / LTM CORE EPS 12.45 14.06 15.39 16.89
PRICE / BOOK VALUE 52.69% 57.30% 61.26% 65.17%
PRICE / TANGIBLE BOOK 52.69% 57.30% 61.26% 65.17%
PRICE / ASSETS 5.10% 5.95% 6.79% 7.74%
==========================================================================================================
IV-2
PAGE>
FELDMAN FINANCIAL ADVISORS, INC.
- --------------------------------
Exhibit IV-3
PRO FORMA ANALYSIS AT MIDPOINT VALUE
PEOPLES BANKCORP
Financial Data as of June 30, 1998
VALUATION PARAMETERS SYMBOL DATA
- -------------------- ------ -----------
Net income -- LTM Y $ 83,000
Net income -- LTM Core Y 82,000
Net worth B 1,648,000
Tangible net worth B 1,648,000
Total assets A 24,247,000
Expenses in conversion X 350,000
Other proceeds not reinvest O 180,000
ESOP purchase E 8.0% 120,000
ESOP expense (pre-tax) F 10.0% 12,000
MRP purchase M 4.0% 60,000
MRP expense (pre-tax) N 20.0% 12,000
Re-investment rate (after-t R 3.33%
Tax rate T 38.00%
Shares for EPS S 92.80%
PRO FORMA RATIOS AT MIDPOINT VALUE
- ----------------------------------
Price / earnings -- LTM P/E 13.86x
Price / earnings -- LTM Cor P/E 14.06x
Price / book value P/B 57.30%
Price / tangible book P/B 57.30%
Price / assets P/A 5.95%
PRO FORMA CALCULATION AT MIDPOINT VALUE BASED ON
- --------------------------------------- --------------
V = (P/E / S)*((Y-R*(O+X)-(F+N)*(1-T))) = $1,500,000 [LTM earnings]
----------------------------------
1 - (P/E / S) * R
V = (P/E / S)*((Y-R*(O+X)-(F+N)*(1-T))) = $1,512,875 [LTM Core Earni
-----------------------------------
1 - (P/E / S) * R
V = P/B * (B - X - E - M) = $1,500,000 [Book value]
---------------------
1 - P/B
V = P/B * (B - X - E - M) = $1,500,000 [Tangible book]
---------------------
1 - P/B
V = P/A * (B - X - E - M) = $1,500,000 [Total assets]
---------------------
1 - P/A
PRO FORMA VALUATION RANGE
- -------------------------
MINIMUM = $1,500,000 X 0.85 $1,275,000
MIDPOINT = $1,500,000 X 1.00 $1,500,000
MAXIMUM = $1,500,000 X 1.15 $1,725,000
SUPER MAX = $1,725,000 X 1.15 $1,983,750
IV-3