Proxy Statement Pursuant to Section 14(a)
of the Securities Exchange Act of 1934
Filed by the registrant [x]
Filed by a party other than the registrant [ ]
Check the appropriate box:
[ ] Preliminary proxy statement
[ ] Definitive proxy statement
[x] Definitive additional materials
[ ] Soliciting material pursuant to Rule 14a-11(c) or Rule 14a-12
OREGON TRAIL FINANCIAL CORP.
----------------------------
(Name of Registrant as Specified in Its Charter)
OREGON TRAIL FINANCIAL CORP.
----------------------------
(Name of Person(s) Filing Proxy Statement)
Payment of filing fee (Check the appropriate box):
[x] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
N/A
- ------------------------------------------------------------------------------
(2) Aggregate number of securities to which transactions applies:
N/A
- ------------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed pursuant
to Exchange Act Rule 0-11:
N/A
- ------------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
N/A
- ------------------------------------------------------------------------------
[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the form or schedule and the date of its filing.
(1) Amount previously paid:
N/A
- ------------------------------------------------------------------------------
(2) Form, schedule or registration statement no.:
N/A
- ------------------------------------------------------------------------------
(3) Filing party:
N/A
- ------------------------------------------------------------------------------
(4) Date filed:
N/A
- ------------------------------------------------------------------------------
OREGON TRAIL FINANCIAL CORP.
[Logo]
OREGON TRAIL FINANCIAL CORP.
Summary Facts
* $400 million thrift holding company headquartered in Baker City, Oregon
which trades as OTFC on NASDAQ
* Owns largest independent financial institution headquartered in Eastern
Oregon
* New management team added in 2nd and 3rd quarter 2000
* Since converting to a stock company in 1997, OTFC has added technology,
human resources and facilities which have caused the efficiency ratio to
be above peers. These initiatives have added significant value to the
overall organization as evidenced by a 45% growth in core deposits and 96%
loan growth since conversion.
[Logo]
1
OREGON TRAIL FINANCIAL CORP.
Summary Facts, continued
* Operates nine offices in rural eastern Oregon
* Strong deposit market share (1, 2, or 3) in five out of seven counties
serviced
* Successfully transitioning to a small business bank from a traditional
thrift
[Logo]
2
BRANCH LOCATIONS
[Map of Oregon depicting the cities of Portland and Salem, and the
counties of Umatilla, Union, Wallowa, Grant, Baker, Harney, and Malheur]
Branch Locations: Baker City, Burns, Enterprise, John Day, La Grande (2),
---------------- Ontario, Pendleton, Vale
[Logo]
3
1997 - 2001 ACCOMPLISHMENTS
Annualized
2001 (1) Dec '97 - March '01
EPS growth 53% 10%
Non-interest income growth 35% 34%
Commercial loan growth 36% 52%
Consumer loan growth 19% 20%
Retail deposit growth 7% 9%
(1) 2001 growth is March 31, 2001 vs. March 31, 2000
[Logo]
4
1997 - 2001 ACCOMPLISHMENTS
(continued)
2001 1997
Commercial & consumer loans
/ Total loans (1) 54% 26%
Core deposits / Total deposits 50% 41%
Non-interest income / FTE (1) $25K $7K
Equity / Assets (1,2) 13% 26%
(1) 2001 represents most recent annualized (if applicable) results of most
recent quarter ended June 30, 2001. For Non-interest income / FTE, gain
on sale of securities are excluded
(2) 1997 Equity / assets ratio as of December 31, 1997, the first quarter
end following the mutual to stock conversion.
[Logo]
5
EARNINGS PER SHARE
Bar graph reflecting the following data:
Earnings Earnings
Month/Year Per Share Month/Year Per Share
Mar-00 $0.17 Mar-01 $0.26
Jun-00 $0.18 Jun-01 $0.32
Sep-00 $0.03 Sep-01 $0.39E
Dec-00 $0.03 Dec-01 $0.40E
Mar-02 $0.41E
Sept-00 and Dec-00 are a result of strategic initiatives. Core results
for each quarter were $0.20 and $0.20, respectively.
....Pro Forma....
[Logo]
6
EARNING GROWTH COMPARISON
Bar graph reflecting the following data for December 1997 - June 2001:
OTFC* - 12.7%
GAAP - 9.8%
* Excluding Stilwell related expenses
[Logo]
7
TOTAL LOANS
Bar graph reflecting the following data:
Year Total Loans
(In Thousands)
1997 $141,403
1998 $155,822
1999 $188,100
2000 $223,352
2001 $254,482
....At March 31,....
[Logo]
8
NPA RATIO
Bar graph reflecting the following data:
Month/Year NPA Ratio Month/Year NPA Ratio
Dec-97 0.18% Dec-98 0.18%
Mar-98 0.22% Mar-99 0.06%
Jun-98 0.00% Jun-99 0.06%
Sep-98 0.20% Sep-99 0.11%
Month/Year NPA Ratio Month/Year NPA Ratio
Dec-99 0.11% Dec-00 0.02%
Mar-00 0.04% Mar-01 0.03%
Jun-00 0.04% Jun-01 0.03%
Sep-00 0.01%
Peer Group Data*: .40%, .25%, .38%, and .39%
* West and Southwest Region Thrifts, excluding MHC's with assets between
$100M - $700M
[Logo]
9
LOAN MIX
Two pie graphs reflecting the following data:
1. March 1997: Real Estate 74%
Consumer 18%
Commercial/Ag 8%
2. June 2001: Real Estate 47%
Consumer 18%
Commercial/Ag 35%
[Logo]
10
DEPOSITS
Bar graph reflecting the following data:
Year Deposit Amount
(In Thousands)
1997 $179,158
1998 $192,735
1999 $199,589
2000 $237,735
2001 $253,777
....At March 31....
[Logo]
11
DEPOSIT MIX
Two pie graphs reflecting the following information:
1. March 1997: Time certificates 59%
MMDA 9%
Other interest bearing 30%
Noninterest-bearing 2%
2. June 2001: Time certificates 50%
MMDA 21%
Other interest bearing 21%
Noninterest-bearing 8%
[Logo]
12
NON-INTEREST INCOME
(adjusted for securities for gains & losses)
Bar graph reflecting the following data:
Non-Interest Non-Interest
Month/Year Income Month/Year Income
(In Thousands) (In Thousands)
Dec-97 $245 Dec-98 $301
Mar-98 $275 Mar-99 $313
Jun-98 $238 Jun-99 $342
Sep-98 $245 Sep-99 $351
Non-Interest Non-Interest
Month/Year Income Month/Year Income
(In Thousands) (In Thousands)
Dec-99 $406 Dec-00 $566
Mar-00 $331 Mar-01 $574
Jun-00 $441 Jun-01 $713
Sep-00 $575
[Logo]
13
STRATEGIC INITIATIVES
* Restructuring of operations resulted in decreased full-time equivalents to
111 from 146 employees; majority of savings came from centralizing loan
processing, proof & function consolidation
* Portfolio restructuring resulted in over a 40% decline in securities
portfolio
* Interest rate risk mitigation resulted in a 50% decline in interest rate
sensitivity
* Stock repurchases are integral to increases in return on equity &
efficient capital usage
* Focus on fee income has increased non-interest income over 253% from March
1997 through most recent quarterly results
[Logo]
14
DISCLOSURE STATEMENT
Cautionary Statement Pursuant to Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995
This Presentation contains statements about Oregon Trail Financial
Corp.'s future results and may constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements may be identified by the use of such words as
"believe", "may", "expect," "planned", "anticipated" and "potential." We have
used forward-looking statements to describe future plans and strategies,
including our expectations of Oregon Trail Financial Corp.'s future financial
results. These forward-looking statements are based on current expectations
and the current economic environment. Management's ability to predict results
or the effect of future plans or strategies is inherently uncertain. Factors
which could cause actual results to differ materially include, but are not
limited to, general and local economic conditions, changes in interest rates,
deposit flows, demand for mortgages and other loans, real estate value,
competition, changes in accounting principles, practices, policies or
guidelines, changes in legislation or regulation, and other economic,
competitive, governmental, regulatory and technological factors effecting
operations, pricing, products and services. Accordingly, these factors should
be considered in evaluating the forward-looking statements, and undue reliance
should not be placed on such statements.
Such forward-looking statements may include projections. Such projections
were not prepared in accordance with published guidelines of the American
Institute of Certified Public Accountants or the SEC regarding projections and
forecasts, nor have such projections been audited, examined or otherwise
reviewed by independent auditors of Oregon Trail Financial Corp. In addition,
such projections are based on many estimates and inherently subject to
significant economic and competitive uncertainties and contingencies, many of
which are beyond the control of management of Oregon Trail Financial Corp.
Accordingly, actual results may be materially higher or lower than those
projected. The inclusion of such projections herein should not be regarded as
a representation by Oregon Trail Financial Corp. that the projections will
prove to be correct. Oregon Trail Financial Corp. does not undertake to update
any forward-looking statement that may be made on behalf of Oregon Trail
Financial Corp.
[Logo]